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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 5, 1933)
, SERVICE ; 5 Wo giuunuitee our carrier ervtce. If jonr paper dues not arrive by 6:15, call 9101 and m copy will be dellrered .at oace. r .. . - " '-' WEATHER . ' I7Bett!e4, -wltb -ralaa to- . J : 4T and Mdar, aaoderate Vfo r t. " f . - - irmperanrei i hiii innp, BmJU 47,'Mba, Bl, riTer 7 ' ".feeV rata. J08' todu " POUNDED iaSl EIGHTY-SECOND YEAR No. 294 ". t 1 :. - . r . ! CafM Amum. Cn.J.. r r.v r ia , . ' - . . - : ' ' ' .raiMf viyuu, ouuim; ujlviilui, Auuca v A3K - - " ' i CRISIS UN TO WAR FACED BY NEW PRESIDENT Pledges in Inaugural Talk, Necessary Leadership ' And Initiative Brief Summary of Policies Given by Roosevelt as He Takes Office Br NATHAN ROBERTSON WASHINGTON, March 4 (AP) Franklin D. Roosevelt took over the presidency of an expectant nation today Kith a hold assurance of leadership and a pledge that he will demand war time powers if necessary to dissipate the forces of depression. Standing bareheaded on the specially constrncted platform In front of the capitol, the newly sworn president told a vast throng of his conntrymen that he would "assume unhesitatingly the leadership" of the nation. He outlined in general terms an eight point line of attack" on economic problems including "adequate but sound money" and said he would submit detail ed recommendations to a special session of congress. Normal Authority May be Inadequate The new president expressed the hope that "the normal bal ance of executive and legislative authority may be wholly adequate to meet the unprecedented task, but warned that "need for un delayed action may call for tem porary departure from that norm al balance of public procedure. "I am prepared under my con stitutional duty to recommend the measures that a stricken na tion in the midst of a stricken world may require," he told his cheering audience. "These measures, or such oth er measures as the congress may build out of its experience and wisdom, I shall seek, within my constitutional authority, to bring to speedy adoption. "But in the event the congress shall fall to take one of these two courses and in the event that the national emergency is still critical, I shall not evade the clear course of duty that will then confront me. I shall ask the congress for the one remaining Instrument to meet the crisis broad executive power to wage a (Turn to page 8, col. 3) T NEW YORK, March 4 (AP) Herbert Hoover tonight began a.ain his life as a private citizen with the high tower of a New York hotel changed for the "White House but with the fan fare marking his departure from officialdom still clinging to him here. Expecting to slip quietly into the city, the ex-presldent was met ty a large throng and a mili tary band playing the long-familiar "Hail to the Chief." He expects to remain several Ciys. He dined tonight alone v.ith his son, Allan, and his se cretary for many years, Law rence Richey, before turning ear ly to rest, tired from the long strain of his office and the strong motions that marked his de parture from Washington. The former president, never theless, was provided with a spe cial switchboard and was pre pared to receive telephone mes sages from former Secretary Mills and other of his former financial aides In Washington Richey told newspaper men that Mr. Hoover Intended to deal only with personal matters here, but it was learned authoritative ly that one Teason for the can cellation of his passage to Pana ma and the Pacific coast was a desire to remain In the east It his counsel might be desired. WASHINGTON, March 4 -i ( A P ) Another precedent - that tering move by President Roose velt tonight brought hit cabinet into fall command by the gov ernment Just few fcoura after he himself had taken the oath. Moving with a bold stroke, the ew chief executive sent his nom inations to the senate and they ere confirmed at once, despite some discussion of the private stockholdings of William H. Woodin and 'reference to Harold L. ickes' former affiliations with the republican narty. r . Then, immediately after be left his place In the court of honor reviewing ' the X inaugural Parade, Mr. Roosevelt ealled his ten ministers to his side and had them sworn. Jastlce Benjamin N. laruozo of tho supreme court ad Inlstered tho oaths. NET S1RII 111 ON luim DAY J- Here la a general view of part u, -Pne oatumay. on tbe nil! top In center la the Putala, the Great Tibetan Temple, built near the Palace of Jehol by the Emperor Ch'ien Lung. This photo was made from the back wall of the Palace grounds. At left la a scene from the battlefront In Jehol, showing Chinese troops who are fighting the Japanese advance on a front of over four hundred miles T Main Defense Isn't Shaken; Governor Tang Sought, Declared Traitor PEIPING, March 5 (Sunday) (AP) Dominating Jehol pro vince because of their occupation of the capital, Jehol city, Japanese forces have planted their flags along the great wall of China. General Tang Yu-Lin, governor of Jehol, whose defense collapsed, today was a fugitive at Lauuping- Hsien. His life I3 theatened it he cresses the great wall the south ern boundary of Jehol or equal ly in danger if he falls into the hands of the invading Japanese. General Tang's' flight was re garded here as treachery and Mar shal Chang Hsiao-Liang, north China war lord, issued an order for the governor's arrest on a charge of desertion. It was said here today thai Marshal Chang is determined the governor's troops must redeem his promise to fight to the finish and that measures were being taken to reorganize them. It was also understood that groups of Marshal Chang's troops continued to fight desperately to day. Portions of his army near Koupeikow pass are being pro visioned by a supply "train" of rickshaws from Peiping. These carts last night traveled over the mountainous country without pause. Chinese authorities, including Marshal Chang's headquarters, admitted that a party of 128 Japa nese soldiers took possession of Jehol city and that another small party of Japanese had pushed southwards to a spur of the great (Turn to page 8, col. 1) Brother Can You Cash Check? Now General Byword SEATTLE, March 4 (AP) Washlngtonlans did business by check and credit today the sec ond of their three day bank hoi iday. The Washington Trust company of Spokane was believed the only Institution in the state which opened tor "business as usual' with no restrictions on withdraw ala. "Brother, can you cash 1 check?" became the byword In many cities, as business houses accepted checks but gave other checks In exchange when the or iginal check exceeded the value of the purchase. cm f.mls en CHINESE BATTLE LEI Old Age Pension, Higher Income Levy Pass Senate Moving swiftly, the senate yes terday passed tbo Important old- age pension bill and adopted a heavy tax on incomes, both meas ures having previously passea tho house. Tho Income tax measure had tho approval of tho state tax com mission. Tho new tax rate be gins at two per cent on tho first $1000 of taxable Income and In creases to seven per cent on ail taxable income in excess 01 $ 8 0 0 0. " Tho maximum tax rate under the existing Income tax law Is four per cent. Slriflo persons are exempted under tho new law ia tho amount of ISOO. married persons 1 00 and dependents 19S0 . .. - genator Chlnnoek declared that tho proposed amendments had received carefal consideration and would raise between. 1 100, 000 and 1700.000 annuaUjr in ex oosfl of tho' amount returned un der tho oxlsting uw. . This Is Just another, step to aid to tho burdens of tho tax payer." SenatoT Bynon said. "Wo Capital Taken by of Jehol ty, the naUve name of Concern Felt For Cermak: Lung Tapped miami, Fia.. March 5 Sunday (AP) Hospital attaches said at 2:30 a. m. (E.S.T.) that Mayor Anton Cermak was spending a 'restless night." At that hour the mayor's res piration was 28. Hospital attend ants said he apparently was In some pain, but added his general condition had not changed. His physicians had retired and left word to be called immediate ly if he showed any change of condition. MIAMI, Fla., March 4 (AP) Mayor Anton J. Cermak tonight was removed to the operating room of Jackson memorial hospi tal where his lung cavity was tap ped for pus from pneumonia in fection. To the family, anxiously gath ered in the corridor of the admin istration building leading to the operating room. State Senator Richey Graham, son-in-law of Cermak, said "they didn't find anything." He did not elaborate. BUT HITLER STAYS BERLIN, March 4 (AP) n prm 11 n (nmnrrnv tnntu In the strangest election since the founding of the republic in 1918. The citizens have been asked to pass Judgment upon a new orientation of German politics. yet the government parties and government leaders have used every opportunity to tell the pub lic that no matter what verdict the ballot will indicate, Ger many's new political course which began January SO with the as cendancy of Chancellor Adolf Hitler remains unchanged. The latest compilation of re ports from various parts of the republic showed that seven per sons were killed in political dis orders Incident to the final day's campaign. The government's position was clearly formulated by Ernest Ob- erfohren, reichstag floor leader of the German nationalists, who said: "This election will not decide whether the national government remains. It will continue In any case "If the government obtains the necessary 51 per cent, this per centage win bo used to adjourn the reichstag after It has em- powered the government to work undisturbed for several years." snouia w aiuw wu sens of Oregon an opportunity Senator Haxlett said tho bill ... and eouitable and that its annroval would go far toward improving tho unsatisfactory fi nancial condition of tno state gov ernment. Senators who voted against the income tax measure were Bynon, Dunne. Mann and Spauldlng. The old ago pension measure wan nassed by av vote of 31 to five. Persons eligible to tho benefits of this law shall have 1 reached tho ago of 70 years and shall bare resided continuously in the-stato of Oregon j or 18 ifrlr IIUQU MM. T month. Senator Lee declared that the bill had received tho indorsement of most of tho women's organisa tions. large number of county courts, tho state federation of la bor and hundreds of .men and women prominent m the etvic and commercial affairs in Oregon. Japanese which 1 Chengteh, captured by E 1 T 'Moonlight Serenade' Takes Prize; Juniors to Leap In Millrace Monday Thrilled, hilarious freshmen thronged to the stepped platform in the Willamette university gy- - nasium last night to sing their Freshman Glee song for a second time sign that they had won the most coveted lnterclass honor of the year. "Moonlight Serenade", their winning song, excelled par ticularly in its musical score, ac cording to the Judges' decision. Second place went to the senior class, third to the sophomores and fourth to the Juniors. The third year students, as a result, will take to the millstream after the chapel hour tomorrow forenoon. The chapel program will be de voted to the traditional parodying of the losing songs. The freshmen surprised the au dience, that filled all available seating on the main floor and in the balconies, by presenting a huge, four-layer cake to the class of 1912, originators of the Fresh man Glee tradition. A. A. Schramm accepted the cake for the alumni of '12 and in turn of fered it to the freshmen If they should win. The cake was carried slowly In to the gym auditorium by fresh men boys while the students and alumni sang their alma mater. 'Old Historic Temple", accompan- led.b vhe Wal,er nal1 organ, con nected by remote control as a fea ture of the Juniors' song. Competition for first and sec ond places was close. Tho Judges scored the classes as follows: Freshmen 1072, seniors 1C69. (Turn to page 8, eol. 1) M0TT LEAVES FOB James Mott. new conrressmAn ftnm tri 1st Alai-ri nt rlsna a 1sowa tonlf ht for Washington, D. C, to puce himself In readiness for the convening of a special session of the eongress. Up to a late hoar last night ho had received no of ficial notice of (he day congress will convene. Ho will go oast by train unless he hears today that eongress bo- gins early this week. In that event ho will probably take an airplane east. Mrs. Mott and tho children will remain In Salem until the j present term of school is over. W. C. Hawley, tho former con- I gressman from this district for 21 years, and Mrs. Hawler will be in Washington for several more weeks. They are expected home late In March. Three of Police 1 - Tvr rr AlltOS Will Have tcnnm h.mimmtnt " At least three city police ears hero will bo equipped with short wave radio receivers by Wednes day, tt was announced at head quarters last night. Until tho Sa lem department's transmitter installed, tho prowl officers will use tho receivers to pick up re ports from Portland pence. Delay tn starting const ruction of tbo transmitting station has been occasioned by extra time re quired ia obtaining & license K m (eder&1 ndlo Mnmlt. on. It is expected tho station will be placed in operation by tho - end of tho present month. SPEEDING CHARGED Louis C Lorenz, 1150 -North Slit street, was arrested 'last I night on a charge of speeding. euy pouco reponea. m a 1 NwlNIN 1 1 WASHINGTON f CURB ON BANKS PREVAILS OVER ENTIRE NATION Delaware Last to Fall in Line; Some Open With Withdrawal Limit National Legislation Held Imminent; 50 per Cent Guarantee Talked WILMINGTON, Del., March 4 (AP) Delaware, the last of the nation's 48 states not under some form of banking restriction, declared a bank holiday tonight, effective Mon day and continuing "uatil fur ther notice." (By the Associated Press) Banks in each of the 48 states were closed under holiday orders or were operating under restric tions Saturday night as finan ciers, economists and government leaders laid plans to bring Amer ica back to financial normalcy. Predictions gained stngth in Washington that a special session of congress would be called promptly to thresh mt the entire situation. Industrial and financial leaders everywhere expressed con fidence that national legislation would overcome the emergency. Reports also were current in Washington that Herbert Hoover and Franklin D. Roosevelt had discussed the possibility of a 50 per cent federal guarantee of bank deposits. Although the restrictions pre vailed in all 48 states and the District of Columbia, there were many communities even.in states having banking holidays where financial business was conducted as usual. One Bank Closed By Using Troops In only one Instance was a bank reported closed by force. That was in Enid. Okla., where national guardsmen enforced Governor William H. Murray's mandatory closing proclamation on the First National. The first thought of business in general was to provide sufficient cash for payrolls and routine ex pense. Although nine-tenths of business normally is transacted by check and checking was impos sible everywhere no cities re port serious curtailment in com mercial and Industrial activities. The New York stock exchange (Turn to page 8, col. 1) ENDS L OFFICIAL CAREER WASHINGTON, March 4 (AP) Four full decades of bril liant political career ended at noon today for Charles Curtis of Kansas, who retires into private life along with his sister, Mrs. Dolly Gann, provocateur of the memorable tea-table tempest over social precedence. From official hostess to the vice-president, Mrs. Gann will turn back to being Mrs. Edward Ever ett Gann, wife of a capital attor ney, but her love of politics will keep her active In republican women's affairs. Curtis who haltingly remind ed tho senate today In retiring that Claude A. Swanson of Vir ginia, Roosevelt secretary of the navy, was the only man present in the house when he entered there In 189 S Is likely to Join her In republican party councils. Of his plans Curtis will say lit tle, but he has three Jobs about which to decide by March IS. Insurance Will Be Issue Before Council Monday Insurance probably will prove bono of contention at tho city council meeting tomorrow night. A special committee will report on whether or not the city shall purchase its Insurance from the Salem Insurance Agents' union or irom individual agents as pro posed by Alderman O. A. Olson who last meeting sought to buy liability insurance for city em ployes from a single agent. Tho ways and means committee also may have a report on the feasibility of tho city's carrying Its own Insurance, as suggested by Alderman 8. A. Hughes, when the insurance discussion waxed hot at tho last meeting. Two Small Girls And Stepfather Burned to Death KANSAS CTTT. Kana, March 4 (API Two small girls and their stepfather were burned to death in a fire which, destroyed a frame cottage near hero tonight Eugene Roberts, 55, the stepfath er.' perished in an attempt to r cue tho girls. Goldlo Slsemoro, and Fay Slsemoro. 10, Cause of tho tiro was undeter mined. - T 1 Extend Bank Holiday Here Due to General Situat ion i n Nat ion Oregon Institutions to Remain Closed Monday; General Basis of Procedure on Reopening Agreed Upon at Conference Here DEVELOPMENTS IN LOCAL AND GENERAL BANK STATUS Governor Meier proclaims Monday as fourth consecutive legal holiday. Bankers from all parts of the state agree to ask further ex tension as needed and to ask state hanking board to Impose ali form, mandatory restrictions on withdrawals thereafter. State bank association names advisory board of five to confer with state banking board regarding policy for future. Developments In Oregon, bankers agree, will largely depend upon national action. Salem banks closed throughout Saturday and will remain cloeed Monday. Bankers agree to permit safe deposit use and to make use of change facilities of bank optional with each In stitution. Merchants here feel effect of bank holidays although down town streets are busy. Checks on local banks taken by most stores tor goods but checks for cash not received. C1ALEM and the entire state kJ blizzaitf yesterday which had swept the entire nation dur ing the night hours of Friday and closed the central banks of New York and Chicago on Saturday. Failure of the key banks in these centers to open precipitated the closing of federal reserve banks which forced an embargo on gold exports and stopped increasing internal runs SESSION DRAGS 1 TO WEEK Solons Confident Calendar May be Cleaned up by Wednesday Night Legislators, tired from the longest continuous term at the capitol any Oregon assembly ever held, were ready and anxious to call their Job ended yesterday but the amount and Importance of un finished work restrained them. The senate adjourned at 1 o'clock after cleaning up Its cal endar; the house dragged on until 3 p. m., then adjourned until 10 a. m. Monday. Members of both houses were confident the calendars could be cleaned up by Wednesday night although a hard drive will be ne cessary to finish such a schedule. Tho ate Monday will go into the question of a constitutional convention in Oregon to vote on the 18th amedment. Out from committee will come a report on the general sales tax and this moot question will doubtless be come a special order for Tuesday The upper assembly will prob ably engage In a considerable fight over house amendments to the Thomas utility bill. Scores of little bills yet remain to be handled and to sandwich these in between the major legis lative matters yet undetermined will keep both assemblies operat ing at full speed it adjournment by Wednesday is realised. 20 Known Dead Due to Floods In Puerto Rico SAN JUAN, Puerto Rico, March 4 Twenty persons are known to have lost their lives when the river Yagues, flooded by heavy rains, rose seven feet and pour ed into the town of Mayaguei, last night, causing great proper ty damage. The water supply was ruined. electric light service was halted and most of the telephone lines were broken. Communication with Mayagues was difficult but the district attorney got through by telephone this evening to re port that twenty bodies had been recovered and - that the search for others was continuing. Wets Persist For State The "wet" guard at the state legislature may die; it never sur renders. Balked for the moment by the senate's failure to approve the Hall resolutions and tho Bee km an beer bill, opponents of prohibition in Oregon moved again yesterday to send new measures to tho up per house, hoping thst arson My would approve them. Representative Hall Introduced a resolution cauing zor s state wide vote on repeal of tho state's constitutional amendments against prohibition. In their place. Hall would substitute this amend ment: Sec. II. Whenever tho legal electors of the state of Oregon, through exercise of tho laltlatfro and referendum powers conferred by this constitution shall sd de termine, no intoxicaU-5- liquor shall bo manufactured, transport ed or sold within, this- state and no intoxicating liquor ahall bo im ported Into this state for beverage purposes, and tho legslathrt as sembly of tho state of Oregon, or were in the grip of a banking on currency and gold. Stock and commodity exchanges in both eastern metropolises were forced to close and the entire nnheaval left Oregon's banks without any option in the total suspension of business here yesterday. Salem took the newest development calmly and the general expression centered on the view that the new natio- 1 administration would shortly be able to effect legisla tion to remedy the existing stringency. Meanwhile bankers from all sec (Turn to page 8, col. 5) IT STATE LOANS Two Millions From Bankers Also Unlikely due to Financtal Crisis Formal notice from the state highway department to the state treasurer that continued loans from road funds cannot be made to the general treasury of Ore gon, will be made Monlay. It is also expected that a $2, 000.0C0 loan for Oregon arranged for a month ago cannot be made due to existing banking conditions These factors combined with the scant amount of general fund cash, were expected yesterday by state officials to place Oregon on a war rant basis within a few days. For a decade Oregon has paid cash and issued no warrants that were not at once redeemable. Un der legislation passed this session and now law, under the emergency clause, the state can issue interest bearing warrants at not to exceed five per cent. Failure of the state highway commission to sell $1,500, 000 of its refunding bonds last week hur ried the financial stringency the state government is experiencing, If funds cannot be obtained by April 1, the state highway depart ment will probably default on $1,500,000 of its obligations. Extend Holiday For California SACRAMENTO. Calif., March 4 (AP) Governor Roiph an nounced today he will extend the California bank holiday through Monday, Tuesday and Wednesday of next week to permit the legis lature to complete action on leg' I islatlon regulating limited bank ing business in this state. in Effort Prohi Repeal the legal electors thereof t ting through the powers conferred by tho initiative and referendum pro visions of tho Constitution of this state, may enact inch legislation as may most effectively control and regulate the manufacture, transportation. Importation, sale and disposal of . interleaving liquors. Hall had tho resolution ad vanced on the calendar and passed. It now goes to tho sen a. where President Fred Kiddle may not accept It since tt covers vir tually tho same ground as the for mer Han resolutions voted down this week. ' Senate rules provide that no. bill which has been de feated or postponed may be intro duced .again' In the same session.' The. beer and "wet" group hope to slide by this rule by measur able changes In tho text of tho new resolutions- . ; The same theory will bo follow ed tn tho revised Beckman beer bin which appeared in -tho house Saturday. - Tho only major "(Turn to page sVeoL I) 1 AY BOARD 10 PARLEYS ON BANK AID SET Special Session Call for Early This Week Talked; Legislation is Already Being Drafted Guarantee of Percentage of Deposits Discussed Along With Gold Embargo, Other Drastic Remedies WASHINGTON, March 4-(AP) President Roosevelt tonight flung the full powers 6f his new office into a bold movement to re vive a fear-stifled national credit which he earlier blames directly upon the "stubbornness" and "in competence" of "the rulers of the exchange of mankind's goods." From the busy White House went out a call by the new sec retary of the treasury, William H. Woodin, to the officers of the federal reserve system and na tional business leaders to meet with him here tomorrow morning. Aroused and alive to "the dark realities of the moment," Presi dent Roosevelt summoned con gressional leaders to meet with him tomorrow to decide definite ly upon a date for a meeting of the new congress. A call will go forward tomorrow night for this extraordinary meeting expected to begin by mid-week. Demand Leaders in Bank Field Assist Emergency legislation is being drafted to combat the situation. Very apparently also, the Roose velt administration is going to demand that the leaders of the almost stifled banking business do some acting. The fact that Cordell Hull, secretary of state, has been in the conference on the financial situ ation is regarded as indicating definitely that a gold embargo has been considered. However, it was stated authoritatively to night that such an action is not regarded as necessary. Also, it was said that there is no cause (Turn to page 8, col. S) SEE HeiATl WASHINGTON, D. C, March 4 (AP) Four visitors from tho distant state of Oregon saw Pre sident Franklin D. Roosevelt take the oath of office today. Seated in the Inaugural grand stand as a guest of Representa tive Charles H. Martin were the four who made the 8000 mile trip to see the new executive take the eath. They were Mrs. James Freights and daughter. Raymond B. Wilcox and James McGinn, all of Portland. Mrs. Freights found special sat isfaction in seeing Mr. Roosevelt become president In view of her activity in the Oregon democratic campagn last fall. She la presi dent of the Jackson club, demo cratic women's . organization of Portland. The Oregonians tonight took part . In the busy social activity of the capital Incidental to Inaug uration day. The four were present not only for the inauguration of President '. Roosevelt, but were also In the senate ' chamber to see John N Garner inaugurated as vice presi dent and to witness tho swearing -in of new United States senators. The Day in Washington (By the Associated Press) Franklin D. Rooeevelt was. won tn as president wttk John N. Garner, as Tieo-presW. dent and 15 new senators 1 all ' democrats . assumed office, giving tho party control of con- OREGOHS President Roosevelt's cabinet ; appointees were confirmed by aenato and held their first meet'. ing with tho executive. President , revealed special session of congress may begin early, this week. ' " Smith cotton bill and lade-' 3 pendent offices -appropriation bill i received rpocket Tetoes'V from t : r tho retiring President Hoover,- .; - WniianV IT. Woodin, sjLjr : treasury secretary, - called spc i rial . Sunday meeting -of ' ttieJ" ', federal 'reserve boardaad : : nancisl and industrial tenders. :? , in .'3 n -1 V