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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 21, 1933)
Accident Insurance Yoa cannot afford to be nlthout Um Travel and Traf fic Accident Insurance which la Issued to Statesman Sub scribers for only 91 a year. WEATHER - Unsettled with occasional rains today and Monday; -Max. Temp. Saturday 52, MJn. as, river 8-8 feet, rain .25 inch, south wind. FOUNDED 1851 EIGHTY-SECOND YEAR Rx1m OlWmii. Tliosil'lr Mnraintr .Y?kmav 91 V QO Strong-arm Bank Reopening Case Active Umatilla Man's Nose Mistreated When He Holds out Finally Gains Desired Concessions, Will Not Prosecute Nose-twisting by man-handler frm Pendleton started in Salem Friday night when Leonard Z vicfcer, farmer of Umatilla coun ty, was dragged from an automo bile In which he was riding with lit? brother. Otto Zwicker, pro jector of the Salem Fluff Rug and Mattress factory, and roughly treated. He was forced to sign a aiver agreement covering his e jiv.it of nearly $15,000 in the Fi-st Inland National bank of ivndlnton, which has been closed on holiday since October 18. What is presumed to have been thi? same strong-arm squad went to Gresham and Saturday atter r.non atacked J. C. Turner, aged firmer, twisting his nose and compelling him to sign a similar vp.iver. Immediate publicity was fiven the Turner attack. While T .e Statesman had partial reports Saturday of the Zwicker attack It v.-as Impossible to verify the ru tiors in time for publication Sun day morning. The Pendleton rroup later made a settlement atisfactory to Mr. Zwicker so all concerned kept the matter quiet. The details ware learned on Mon day. Leonard Zwicker came down from Pendleton last week to visit bis aged father who Is ill, and ether relatives. One of his pur poses also. It was stated, was to -rape depositors' committees who lad been besieging him to sign up tn permit the bank to reopen. On Wednesday two men from Pendle ton called on him and persisted q their efforts to get his signa ture. He refused to sign on the trms proposed In order to protect a brother also farming in that county, who was indebted to the bank and in danger of being clos ed out by them. The Pendleton men sought the intercession of local bankers to effect an agreement because the reopening of the bank was regard ed as of prime importance to the business life of Umatilla county. Friday night a conference was h' Id with a Salem banker as In termediary. No agreement was ar rived at but the local banker sent t-rms to officials at Pendleton, expecting the reply Saturday morning. Mr. Zwicker and his brother tto then left the bank to retnrn l:om. Men had peered into the tank when the conference was in progress, but they thought noth ing of it. Passing along State street to reach their ear they saw ether cars with a group of men in them. Two cars followed them as they drove toward home at 13th and Wilbur. On South 12th street, they were signalled to stop and about nine men set upon them, first molest ing Otto Zwicker by mistake Then they roughly pulled Leonard zwicker out of the car and twist eu his nose severely. As he was overpowered by numbers he sign ci the waiver telling them it ould be of no value. Zwicker did ot know the names of the men: but one said to have been in the company was George Ferguson, also reputed member of the crowd at Gresham. The Z wickers came back down town and reported the matter to the district attorney. The Pendle ton crowd Saturday morning so licited terms of settlement. They finally agreed on terms which Otto Zwicker said were far better to his brother than what he had previously offered to settle for. Mr. Zwicker then signed the agreement voluntarily and drop ped ether charges. The matter was closed np Saturday noon. It was Saturday afternoon when the Gresham farmer was given simi lar rough treatment by the Pen ileton rough-necks for which they (ace charges of prosecution. The rency comptroller of the cur- zssF&zssviirs. of deposits lowing it to resume business. As Zwlcker's deposit was a large one. his agreement was necessary to permit the re-opening. According to Monday's dispatches the bank is expected to again be running within a few days. Edwin Winter, in charge of the bank reorganize tlon, when advised Friday night of the tactics used bare. Imme diately advised that no -waivers obtained nnder duress would be used. Municipal Dock Plan is-Backed The proposal for Mayor Doug las McKay and City Recorder Mark Poulseu to apply lor a $75,- 000 R. F. O. loan for construc tion of a municipal dock hero was 'ported out favorably by the city council public utilities committee last night. The original resolution was introduced at the first council Squad in iere, Report Youth Held for Alleged Threat To Slay Mother Alleged threat to kill his mo ther, Mrs. Mary Dobrkosky, yester day caused arrest of Herman Do brkosky, SO, 1165 South street. He was lodged in the county Jail late yesterday afternoon following arrest by the sheriff. According to tale told by the mother, Dobrkosky flew into a rage yesterday morning, hurled dishes from the kitchen table, and threatened to "kill her. His mother said he had been out of work for some time. He is charged with threatening to com mit a felony. 80 Grocers Enthusiastic at Meeting; Public Support Also Needed, Shown The first step in a new move ment to buy Salem and Oregon products was taken at a meeting held at the ehamber of commerce Monday night when 80 of the leading grocers of the city met to talk on home industries and home made products. These grocerymen met at the Invitation of the industrial de partment of the chamber of com merce and the generous responses indicated keen Interest and wil lingness to cooperate in improv ing local retail conditions espe cially in handling home made bread. Called upon for expressions of opinion, grocerymen indicated not only their interest in home made bread and other home made products, but an Intention to han dle only these home made goods. In several of the talks made by the grocers, it was stressed that the buying public and this espe cially included the women, should be educated to demand home made goods. All expressed their intention and willingness to han dle home products but many said only -Oregon goods would be sold if the buying public would have these products more in mind. B. E. Sisson, president of the chamber opened the meeting and later called upon Howard E. Hul sey, director of the Industrial de partment of the chamber to pre side. Those making short talks on the advantage that would accrue to Salem if home made products were demanded were C. P. Bish op, . L. wieaer, ran, aiarsnau. Ed Kennedy, J. N. Chambers and T. M. Hicks. The buying of home made bread was especially stress ed by Mr. Hicks. "We feel the meeting was a great success, ' said Mr. Sisson, as the grocerymen expressed themselves as not only interested in featuring Salem products, but many asked that another meeting be held to discuss other matters of Interest to the retail trade." Moonlight Saving Scheme Banished By City Council Hopes or fears of Salem citi- sens lor the "mooniignt saving- scheme of street lighting economy were banished last night by a special council committee's recom mendation that larger savings could be obtained through a two point plan: 1. That at least half of the cluster lights be discontinued. 2. That many of the corner arc lights be turned out after 12:30 a. m. sra id on H PRODUCTS FAVORED g - Move for a Less Diastic Education Effort to obtain a less drastic reduction In the salary schedule for the higher education, lea ny Homer Angell, tailed to receive approval ot the ways and means committee ot the legislature Mon day night. Angell proposed that the I to 20 per cent reduction be applied to these salaries Instead of the S to 50 per cent cm wnicn the committee adopted early in the session. Angell Indicated such a rever sal would save the higher educa tional institutions approximately tieo.ooo. Renresentative Abrams protest ed against any change ta the sal ary reductions affecting the high er educational institutions on the ground that the five to 50 per cent cut was a compromise which apparently? was satisfactory to all BATTLE ICED Hours of Debate Result In Passage of two Bills, Defeat of Others Dickson Leads in Strenuous Fight; Rumor of Strong Lobby Is Voiced Rates on small loans, whether they" be the $5 advance of a pawn broker, or the $300 maximum 8 per cent a month advance now made by so-called "remedlan as sociations", tied the house np in oratorical knots Monday and the fight was not concluded until 4 p. m. As a result some SO house and senate measures also on the calendar were held back and lead ers in the house admitted it would be impossible for that ses sion to conclude its work this week. The five bills dealing with the small-loan business went through a series of parliamentary man euvers: first a motion to indefin itely postpone consideration of all the measures, a step the house immediately voted down. Then came a bill by bill consid eration accompanied by recurrent considerations of the various measures by committees of the whole. When the house had con cluded its activities, the follow ing changes had been agreed upon in existing laws: Interest rates on pawnbroker's loans were reduced from three to two and one-half per cent a month. The state banking department was authorized to secure full gross and net earnings reports on all small loan businesses nnpnf. ing under a state license. H. B. 457 to limit interest rates on loans of $30 or less to 10 per cent a month was killed. H. B. 458 to limit Interest rates on all loans up to $300 to two and one-half per cent was killed, members Dammasch and Keasey changing their aye votes to nay after the bill had a 31 aye major ity. ' H. B. 459 to reduce interest rates on monthly balances of loans on autos from three to two and one-half per cent on sums of $500 or less was lost as well as the attempt to reduce the limit for three per cent loans from $800 to $300. As a whole, the small-loan re ductionists lost their fight hut Representative W. L. Dickson, who led the attack, put up a gal lant scrap which on several roll calls was only one or two votes short of passage. Dickson in the morninr session won the fight from the majority report of his committee when he secured passage or his motion to Turn to Page I, Col. 1) CHICAGO, Feb. 20 (AP) The advance contingent of one quarter of the 1933 National league pennant race, the Cubs and Giants, steamed toward Califor nia's spring training grounds to night in great style and ca maraderie. Getting an even start in the flag chase, the first squads of the two great baseball rivals Joined torces in umcago ana Doaraed a deluxe nine car special train for the trip west. The combined party totaled 58 of which 22 were base ball-players. President William L. Veeck, making his first trip west with the elub In many years, headed the champions and their party of 32. Included among them were Man ager Charlie Grimm, Pitcher Guy Bush, Pat Malone, "Buck" New som, and Beryl Richmond: Catch ers Zack Taylor, "Gabby" Hart- nett, and his brother, Herman, who is getting a trial; Infielders Elwood English and Billy Her man, and Outfielder Jackson Rlggs Stephenson. Cut Defeated "It is my opinion," Abrams de clared, "that IS per cent ot the millage tax tor the higher eduea tlonal Institutions should he di verted to the general fund." Representative Gordon then raised the question whether it was legal to divert funds whleh had OVER INTEREST RATE On LOANS CUSS ID GHS HEAD SOUTHWARD t$ZttWorkent Center this question be referred to the attorney reneral for a legal opin ion. B. K. Lawson appeared before the committee and urged an ap propriation ot $10,000 for the cre ation ef a state mining hoard. A bill providing for placing all self supporting state activities on a budget system was explained by the committee by Represents Courageous Woman Oi Roosevelt; and in I mi l iimyuM I I ilii. .!... '. 1 ' ,. ' ' -f , "' ' ' : 1 T ' VV .: ; - -f- , r : w-,..i.:;-' s .'.V . t ;y-r; . V?,-r'i iii mrt-IV" t f -0i atc-- - - V. i I t uPfi&S ; " s . -f ' " s ' 4 " .. -, - C A 1 .' ; ... Vj . : v " r -':m VI - .-- , v3 - .- ' . Vx- "A tJ , " " N 4- i . K - - t- i J if t Jt - .,: 4. -X4r 5" ; V -''! klil..,... i FACE U. S. CHARGES Illegal use of Mails Cited In Secret Indictment; Men are Arrested PORTLAND, Ore.. Feb. 10 (AP) Dr. B. P. Giesy. Zeno Schwab and William Phoenix, of ficers of the Willamette valley Mortgage and Loan company of Aurora, Ore., were arrested today on charges of nsinjr the United states mails to carry zorward a scheme for obtaining money and property by means or raise pre tenses, the charges were contained in a secret indictment by the fed eral grand Jary. Gordon Watt, attorney for the company, who was also indicted, had previously surrendered him self and given bond of $1,000. The three arrested today were re leased on $1,500 bonds. Dr. Giesy was president of the company and also of the Aurora State bank. Schwab, secretary of the company, was cashier of the bank. Both institutions have gone into receivership. The four men are accused by the federal government of Issuing trust deeds on real estate which were not bona fide. The govern ment charges that they wrote let ters to customers who had mort gages on property at the time those mortgages expired notifying them, that the company was rein vesting tne money in otner mort gages and enclosing notes alleged to be worthless. The Indictment named Ed W. Dlller, Fred B. Gar rett. Charles T. Hart and N. C. Westcott as alleged llctlms. Watt is at present in Seattle, where he is in the drug business. Dr. Glesv was arrested today at Aurora and Schwab at Gervais. Phoenix came here ot his own ac cord from Jerome, Idaho. The federal grand Jury indict ment contains four counts. Ben W. Olcott of Portland is receiver for the mortgage and loan com pany. Jean Eastridge Recovering; Has SeriOUS Injury wuu J Improvement was reported last night in the condition of Jean Eastridge, 1069 Leslie street, who suffered serious Injuries to her back early Sunday morning when a car in which she was riding with Sam B. Harbison, It, of 1145 South Commercial street, crash' ed and rolled over on the Pacific highway, 10 miles south of Sa lem. Harbison received cuts about the head and sprains ot a leg and the back. Both were knocked an- eonsclous. Miss Eastridge is In Salem General hospital. In his report to the sheriff. young Harbison states uai nis ear was struck by an un Known machine coming from the south. turning his car around and wreck ing it. The other machine did not stop andiu license numner was not obtained, he says. To Open Tonight Opening ot a so-called "work ers' center at the corner ot Com mercial and Court streets will he celebrated by the Salem unem ployed council at t o'clock tonight with a public meeting; Dirk De Jonge of Portland Is scheduled to sneak on "United Front Mass Action." Who Saved Life One ot Wounded Above, Mrs. W. F. Cross of Miami, Fla., whose courage and pres ence of mind helped to thwart the Intended assaaslnatlon of President-elect Roosevelt. Un daunted by the sadden appear ance of a pistol in the hand of Goiseppe Zangara who was standing near her. Mrs. Cross aeired his arm and spoiled his aim. Picture telephotoed from Miami to west coast. Below, Mrs. Joseph Gill of Miami, most seriously wounded of Zaagara's victims. SARA GETS 1 MIAMI. Fla.. Feb. 20. (AP) As scornful of the law as when he tried to assassinate President elect Roosevelt last Wednesday night, Guiseppe Zangara pleaded guilty today to four counts of at tempt to murder, and was sen tenced to 80 years' imprisonment. "Oh judge, don't be stingy. Give me 100 years," me as-year-oia prisoner shouted as he was led from the courtroom. Then, laugh ing in evident amusement, he fell in step with his guards and was led back to his prison cell. Zangara's sentences of 20 years on each count, running consecu tively, constitute life imprison ment at Raiford state prison or hard labor in the Flordia road camps. However, should Mayor Anton Cermak ot Chicago, or Mrs. Joe W ClU. society woman, die of .Annit, h. fwaItmI from bnl- they lets fired by Zangara at the presi dent-elect, the state wm seek a first degree murder Indictment and the death penalty. Cermak and Mrs. GUI were reported con tinning to show Improvement at the hospital here. The severance tax was debated before the house committee on assessment and taxation last night In the statehouse. The meeting was presided over by B. F. Nich ols. Amonc the nroponenta of the bill were George B. McLeod. Wells Gilbert. B. B. Tanner. M. R. Wil liams' end Charles Brlggs. A ma jority ot these speakers represent ed various runvier concerns ana lumber groups throughout the state. Those opposing the bin were H. B. Van Duser, Jack Magalad ary, W. T. Evsnson, Ouy Gordon, George Gerunger ana sea w. Keeney. Most ot these speakers were lumber operators and rep resentatives of some of the coun ties of the it-to. , WANTS 11 SEVERANCE TAX IS DEBATED FURTHER E RATE INCREASE FORECAST Survey of Department WHI Be Made, Hope to Offset Underwriters' Data Base Will be $1; Move is Criticized Severely by Council Members Announcing receipt of informa tion that the base rate for tire in surance in Salem was soon to be raised. Alderman O. A. Olson last night obtained permission from the council for the fire and water committee of which be is chair man to make a thorough survey of the efficiency of the fire de partment. In doing so, he precip itated a lively discussion about insurance men and firemen. The insurance underwriters, who In their report two years ago set the base rate here at 80 cent on $100, plan to raise the rate to $1, Olson stated.-He said he wish ed to make the survey of the fire department so as to be able to make a showing to the underwrit ers. Alderman H. H. Vandevort pop ped up to declare that "we've got a good fire department. If there is any way on earth we can take this Insurance away from them, let's do it." Raising the Insurance rate, he averred, is "highway rob bery". Questioned on wnat the city could do about the insurance, City Attorney Chris J. Kowitz commented, "We can take it or leave it. The council can only de cide about Insurance on city prop erty. The private citixens can In sure as they like." "The fire insurance companies have been losing money on fires for the past 13 years," Alderman Paul Hendricks Interjected by way ot explanation. "The rate here is low, the same as at Eugene and Albany." Of 5000 points on which the underwriters base their rates, 1500 points are on fire depart ments and 1700 on water sup- f plies. It was on these two factors. especially water supply, that the last rate raise was made. Alderman Olson lost when he moved that $340 be spent to pur chase smoke and gas masks tor the fire department. He de clared the Oregon building fire last month, with its deadly fumes from burning photographic films. had proved the uselessness of present, low-quality masks. One (Turn to Page 2, Col. 3) WETS TAKE HEART AND PLAN ACTION While not out on the floor of either house, the prohibition sub ject again became a major issue in the Oregon legislature Monday following action by the national congress submitting the repeal of the 18th amendment to the states. Leaders predicted favorable ac tion upon the new house measure calling for the election of dele gates to a state convention to con sider the issue. A senate proposal had previously been defeated 17 to 13 In the upper house. Recognized wet leaders express ed themselves Monday as encour aged over the prospects of the proposed measure while Romeo Gouley, Marlon county represen tative, wired Senator Charles L. MeXary requesting immediate in formation as to what congress may be expected to do in the mat ter of convening state conventions and providing machinery for the election of delegates. N Sales Tax Battle Fought All Over Again, Hearing A final public bearing on pend ing tax measures was held by the house committee on taxation ana revenue in the house chamber last night The hearing developed into an argument over the sales tax In which much old straw was threshed over. Farmers appeared on both sides of the Question, the most eloquent advocate of the sales tax being E. H. Belknap, former representative from Ben ton county. He professed to see nothing else la sight to meet the emergency. "Farms have been bearing $0 iter cent or tne ouraen ior sv years," said Belknap, "ana u necessities are to be exempted, the farms should be exempt. Pro- Tidlnc- revenues though an Income tax Is an lmpocsiDUiiy. wnere are your Incomes? Lowering the ex emptions gets more people to rote aralnst it. I am tor the sales tax sure and simple. It Is not usJusL Every Individual ought to he will ing and anxious to support tae government. Clerks, teachers and salaried people who par no tax now would he glad to pay a fair tax." J. S. Bernards, Yamhill county tanner, urged relief from property taxes and said he favored a sales tsx over a property tax. CHINESE ATTACK BUT ARE BEATEN BACK: LOSS HUGE Attempt Drive on Japanese Garrison at Chaoyangssu; Many Left Dead as They Retreat Northward; Veteran Japan Army Moves Briskly Into Jehol but big "Push" Expected Today has not yet Started Secession From League of Nations Decided Upon, Naval Minister at Tokyo Declares; Navy Ordered to Prepare For any Emergency; Assault on Manchuria's Neighbor To be Answer to League's Condemnation CHINCHOW, Manchuria, Feb. 21 Tuesday ( AP) Re ports of severe fighting between Japanese and Chinese troops at Chaoyangssu in the Province of Jehol, were rec ceived here today by the Rengo (Japanese) News agency correspondent. The Japanese asserted the Chinese attacked the Japa- nese garrison there at 10:30 p. m. SESSION T BE President and Speaker Give Up Hope; Long Debates Holding up Parade Hope of adjournment of the 37th session ot the legislature by Saturday night was abandoned yesterday by Speaker Snell and Senate President Kiddle- when both men admitted it would be impossible to complete all pend ing legislation within the next five days. Both presiding officers were hopeful last week end that the session, now in its 42nd day, could be ended with only one week and one day consumed be yond the legal limit of 40 days. A day-long debate of the small loan bills in the honse, with a 50-bill calendar virtually un touched, caused the speaker to change his predictions. The sen ate passed a number of compara tively minor measures yesterday but was under a slow bell, waiting major legislation to come in from the house. All legislators are now serving without pay, the final per diem al lowance ending last Friday. The largest lobby attendance since the session opened was not ed under the dome yesterday. Builders, Show Scheduled tor Mar. 23 and 24 March 23 and 24 are the ten tative dates for the building show to be held by Salem chapter, Ore gon Building congress, it was an nounced at last night's special di rectors' meeting. The affair will be staged in the armory. Present plans are for Mayor elect Joseph K. Carson of Port land to be the main speaker on the opening night program. In addition to programs, the show will offer the public, free ef charge, opportunity to view all types of building materials and equipment, arranged in beoths around the armory wlls. Leading the fight against the sales tax were Ray Gill, master ot the state grange, and Ben C. Osborne, secretary of the State Federation of Labor. They cover ed practically the same ground as during the special session. Gill advocated increases in income and Inheritance taxes, reducing of ex penses and using state s credit to carry the deficit. Others opposing the tax were C. D. Springer, Linn county farmer and Mr. Williams of Washington county. A group of Washington coun ty farmers presented resolutions asking tor relief from heavy prop erty taxes, and calling for a con stitutional amendment prohibiting sueh levies. Mr. Haines ot Wash ington county, pleaded with the people to leave the matter with the legislature and not to sign any petition referring to the peo ple the tax laws which the legis lature finally evolves. J. 1". TJlrich, representing real estate men. expressed the new of his group as favorable to the Income tax rather than property or sales taxes. The taxation committee will proceed to formulate Its recom mendations tor submission to the legislature, which fa expected to be within the next few days. 1 H T W Monday night after which the Chinese retreated northward, leaving many dead. The command of General Yosk lmichi Suziki, comprising veter ans of the Shanhikwan battle ear ly In January, are hastening into Jehol province. The Japanese troops also ex pected to seize shortly the city ot reipao, tne terminus or one branch of the Pciping-Mukden railroad. Japanese reports were that the Japanese soldiers immediately set out In pursuit of the retreat ing Chinese at Chaoyangssu. The Japanese assert that Chi nese troops belonging to General Tang Lu Lin's 107th brigade had attempted to encircle Chaoyangs su and to attack the Japanese from the rear. This maneuver, according to the Japanese version, precipitated the conflict. (A Tokyo war office commun ique said this clash was an isolat ed affair and was not connected with a major offensive in Jehol province for which the Japanese now are preparing.) TOKYO. Feb. 21 Tuesday (AP) Saying that Japan had de cided to secede from the League of Nations, Admiral Minea Osaml, Japanese naval minister, today or. dered the Japanese navy to be prepared for any emergency. His Instructions followed fast moving developments that were bringing to a head the SIno-Jape nese dispute regarding Manchuria and the nearby Province of Jehe. Although a foreign offlew spokesman said the Japanese as sault on age-old Jehol might be gin today, concomitant with the League of Nations' adoption of report condemning the Japanese course in Manchuria, other mili tary leaders here said the carefully-prepared and long-expected as sault on Jehol might not start for several days. Council Assists Police Radio to Extent of $300 The city council last night came to the aid of the police depart ment in its efforts to obtain a short wave radio call system here by appropriating $300 from the emergency fund. This appropria tion together with fands obtained by the police brings the total of the radio fund to around $700. A few hundred dollars more Is needed in order to place the po lice radio station in operation, it was stated after the meeting, bet Installation of equipment will be gin in the near future. The Day in Washington By the Associated Press Repeal of 18th amendsaeac submitted to states for ratiftc tlom as house passed, SSw tSJ 121, resolution already approv ed by senate Senate passed Wagner bill car rylng additional $300,000,000 for relief loans to states and liberal izing construction loans. President Hoover In special Message urged on cosurreas Sev ern moves to promote "eceSKmte recovery' and opposed denies tie anotment tans relief. House received from committee $311,000,000 naval appropriation bill. Senate agricnltare committee reported formally domestic ed- 1 lotsaent farm relief hm limited te wheat and cottosu Melvln Traylor and Leonard F. Ayres, bankers, advocated to set ate finance committee sound money and reduced governmealu expenditures. . toeetln this month, concerned." ut Ryan,