The Oregon statesman. (Salem, Or.) 1916-1980, March 07, 1933, Page 1, Image 1

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    SERyiCE ;
, "W guarantee' oar curler
service.: If you paper doe
oi arrive by 6:15, can 9101
sued a copy will bo delivered
- at once, j-i I
;r ; Ralm lulay. aad Wedaea
; day, moderate temperatare;
. Uax. Temp. Monday JSS, Mfaa.
S4. river 0u2 feet, TainjJOl
tach, Variabl wiada. ' v
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-t .Salem, Oregon, Tuesday Morning, JItreh 7, 1933
- e a .
Yp la!
Amendment to Lower to $3
Voted in Committee,
- Bill is Held up v
Graduated ad Valorem tax
Added Instead of gas
Tax Increase, Plan
After amending tfca Dunne au
tomobile lleensa fee bill in com
mittee of the whole to provide a.
IS flat fee with an additional
graduated ad valorem tax, instead
of a S flat fee with one cent per
gallon tax on gasoline, the senate
Monday night recessed the com
mlttee until 10 o'clock this morn
ing without making final report.
- The amendment was offered by
Senator Allen after he had spoken
for more than 30 minutes in op
position to the bill reported out
by the roads and highways com
mlttee. The motion to go into a
committee of the whole carried by
a vote of If to 14, hut recess was
taken before the amendment for
mally had been injected into the
In addition to the annual $3
flat automobile license the Allen
amendment provides for an. ad va
lorem tax of two per cent of the
value of the motor vehicle.
The Allen amendment contain
ed several of the outstanding
features contained In his measure
which was introduced in the
bouse early in the session and
later laid on the table.
The committee bill was explain
ed by Senator Dunne, chairman of
the senate roads and highways
committee. He said the measure
had been given careful consider
ation and that it was not the idea
ef any one man.
Dunne said -the bill had been
so drafted that it would care for
the maintenance of the existing
highways, retire outstanding
bonds and interest, and defray
the administrative costs'.' Further
provision waa made whereby the
measure would return to the
counties approximately $1,800,
000 a year.
The measure was opposed by
Senator Spavldlng who said the
proposed S annual license fee
and additional one-cent gasoline
tax would increase rather than
reduce the cost of operating the
smaller machines. "This is not
the kind of a license reduction
the public has d e m a n d e d",
Spaulding said.
Spaulding charged extravagan
ces to the state highway commis
sion and referred particularly to
the maintenance of parks, cost of
road construction, and the eon
duct of its engineering depart
(AP) From many state capitals
proclamations are to be Issued
Wednesday calling for support of
the "president of the United
States and our institutions."
At least the governors of 25
states and representatives of 12
others meeting at the White
House adopted a resolution to
that effect proposed by a number
of prominent men. They included
Alfred E. Smith, Newton D. Ba
ker. Dr. Nicholas Murray Butler
of Columbia 1 university, Daniel
Willard, president of the Balti
more and Ohio; William Green,
president of the American federa
tion of labor leaders of farm or
ganisations and ! church dig
The resolution was proposed to
the conference by a non-partisan
committee of which Rear Admiral
Richard E. Byrd is chairman.
Other signers of the letter were
Louis J. Taber of the National
grange; Edward O. O'Neal, of the
American Farm Bureau federa
tion; Cardinal Mundelin; Doctor
Harry Emerson Fosdick; Rabbi
Stephen Wise: H. L Harrlman,
president of the United States
chamber of commerce and Walter
LIppman, writer.
Late Sports
PORTLAND, March 6. (AP)
Harold Helbert of St. Helens,
Grm.. deftd Thor Jmiai ttt
Xlktoa; Ore.,; two lalla out of
threa in thai Main event at to.
night's wrestling card hero. Hei-JeoSnage for equivalent sums of
brt wftirh list.. a nnnnif winrAi lower or higher denominations as
'than Jensen. , - '
Jensoa took tho first fall In
-10 minutes with a leg hammer
JockY Helbert i won tho second ta
six minutes with " a body slam
and the third tour minutes later
with ' another body slam.
Z Joe Reno, 1 157, Mew Orleans,
defeated 'Bunnle ,M art! n, let,
Seattle, two f alia out of three
tha mlwtntnn. TTrh nmiM.
lis Portland won a fanl
trm y-m iiACaii i ik PArtiaad.
the osener s .-
New National leader Tak Helm ; :
- T !
S I, f
f . NT.
iy.U;-,i ll
. f
Telephotos from Washington to-west coast show, above. Chief Justice)
office to Franklin D. Roosevelt
capitol plaaa aa President Roosevelt delivered bis Inaugural address.
City Insures
Mules Though
It Hasn't Any
Although the city government
hero has owned no horses or
mules for over nine years, tax
payers nave been conmouting
right along for Insurance on the
work animals and their feed, it
was brought out at the council
meeting last night. Alderman
Paul R. Hendricks made this an
nouncement, amusing to the full
gallery, largely composed of in
surance men. In Btating that the
Salem Insuance Agents' union
had recently made a survey of
the city's insurance needs.
The council turned its brief ses
sion Into a publie hearing on the
question of whether the insurance
agents' union or individual agents
should write a blanket liability
policy protecting city employes
The final result was that the
special committee report, favoring
the agents' union, was adopted
with the understanding that the
proposed policy should be sub
mitted for Inspection of the alder
Firemen were forced to break
into the Standard service station
at State and Cottage streets last
night to get at a fire in the com
pressor motor. The motor was de
stroyed by tire, starting from
short circuit, but no other damage
Change Depots Opened to
With the approval of the fed -
.ni ..rt hanv tna three hanks
- " - -
of Salem established change de
pots In the Hawkins and Roberts
offices, the former Bank of Com
merce location. Tho offices were
opened yesterday and will contin
ue during the banking holiday
from 11 a. m. to 2 p. m. and will
make change tor patrons. They
will not cash checks on any bank
I but will exchange currency and
I desired. No gold or gold eertlli-
catea may be paid out.
Tho banks have also agreed to
permit access to safety deposit
boxes from II to 1 each day. Tho
bank rooms will not bo throws
onan to tho public but during tho
noon hour an employe will stand
at the entrance and admit the
In I holder of a safe deposit box or his
dnlT authorised deputy. '
I -Tno cnaure oepoi Ql a Brua
4 busineas t :yesterday during tho
t nours -wwaa ui cuwtw
i i
- ' -
wbo aieretnr assnmea tbe preaiaeiicyx beiow, geBerat view oi uw
Salem Chamber Agrees With
Other Agencies; Dock
Progress Noted
The Salem chamber of com'
merce board of directors, at the I
monthly meeting Monday night, I
lined no with the Albany chamber
and the Eantiam Fish and Game
association In a joint petition to 1
th TTnHM States forest service,
anVlnr that the nrimitive area to
be set aside in the Santiam Ka-
tlonal forest be bounded on the
weat and south br the North San-
tlam highway.
B. E. Sisson, president of tne
chamber, reported on the Joint
meetinz recentlv held in Scio in
which all organizations Interest-
ed. including the Marion County
Game Protective association and
the Chexneketans, endorsed this
William P. Ellis, director of the
legislative department, reported
that the chamber. In cooperation
with Mayor Douglas McKay and
the city attorney is preparing an
application to the Reconstruction
Finance corporation, asking for
$75,000 for the construction of a
municipal dock in Salem.
Mr. Ellis also reported that the
bill for improvement of the Wil
lamette' river north of Salem, en
dorsed by the chamber, would
come up for hearing this morn
ing in the legislature.
As a result of a meeting held
(Turn to page 2, col. 8)
Public Here
. the situation greatly so far as
(-small change was "concerned.
I -m.m
Many Individuals and representa
tives of business houses that had
run short of small change came
In with bills to get them changed.
A larger business la expected to
day when more people will knew
.While bank employes reported! Governor, Julius L. Meier yes
tor work Monday morning no I terday .declared additional non
business was transacted aside 1 days for this state, extending tho
from odds and ends sot connected
with receipt and payment ot mon
ey. Bank vaults wers- not opened
save to permit access to deposit
boxes. Representatives of the
three banks conferred to perfect
plans for cooperation . during the
holiday nerlod.
Banks here expect to act witn
Portland banks in issuance ot agreed that such a. pro vis ion wast ten-hour shift daily, and about 60
clearing house certificates unless I wise inasmuch as debtor and ered-1 men will ho employed. Tho eom
h.iiiU takm I itar.Mlationa could not be normal I maxa logxiag camp will ho open-
that step. -
1 !
.i t
V t
Hnghea djninJsteriag oath of
Justice, Else
Revolution is
Banks' Threat
MEDFORD. March 6. (AP)
In a protest meeting launched by
the so-called "Good Government
league" against two county com
missioners. Llewellyn A. Banks,
honorary president of the league,
la a speech from tne
courthouse steps
"I have written the governor,
the supreme court, the state
treasurer and other officials that
unless Justice is restored I win
taka the field in revolution
About 1000 persons witnessed
the demonstration which was or-
I derlr.
Banks led the organization oi
the league several months ago ai
ter protesting against the actions
of several county officials. Mrs,
Henrietta B. Martin, president of
the league, and County Judge E.
H. Fehl, a Banks' partisan, also
made talks. The only disturbance
was caused by a group of high
school students who heckled a
I speaker.
I After the statement by Banks.
I Mrs. Martin proposed the group
visit the offices in the courthouse.
'In good order," Banks insisted.
'Always in good order. That is
the way the Good Government
league does things."
Municipal Water
Plans Furthered
By Council's Act
The city last night took t
other step toward acquiring
municipal water system when It
adopted a resolution introduced
by Alderman 8. A. Hughes, agree-
inr to terms of a bill before tne
state legislature directing the
state board of control to contract
with the city for purchase of wat
er for stater Institutions. Tno con
tract would be made In event the
ety obtains a gravity water sys
tem supplied irom tne norm san
tiam river.
Governor Extends
time when no business of a legal
and financial nature can bo trans
acted to Thursday, March 10, at
midnight. The holidays coincide
with the national holidays called
I Sunday by President - Roosevelt.
Court business cannot he trsns
; aeted ta the atate until the hoH
day period expires. Xocal lawyers
. under existing circumstances, x.
Gouley . Bill for Referring
18th Amendment Given
Approval 1 to 12
Change, From Former Stand
Based - on Fact Special
Election Unneeded -
The senate late Monday adopts
ed the Gouley; bill which calls for
a statewide rote and convention
on the proposition of continuing
or repealing the 18th amendment
to the United States constitution.
The measure differs from the Up
ton bill, defeated earlier in the
session, in the tact that a special
election is not called for, the mat
ter of selecting delegates to the
convention coming up at the next
general or special election held In
the state. Vote of the senators
was 18 ayes, 12 nays.
Members who switched their
position explained their votes en
the tact that the Gouley bill did
not Call for the expense of a spe
cial election. Proponents of the
bill contended it was only eqult
able, in light of recent congres
sional action, to permit the cUl
sens of Oregon a vote on the pro
hibition question. Opponents gen
erally argued that prohibition was
better than saloon days and that
no opportunity should be allowed
for the return of the legalized li
quor traffic.
- Those voting for the bill were
Brown, Bynon, Chinnock, Corbett,
Duncan, Dunne, Fisher, Francie-
covich, Ooss, Hazlett, Hess, Lee,
McFadden, Spaulding, Strayer,
Upton, Tates and Kiddle.
Those against were Allen,
Booth, Burke, Dickson, Dunn,
Jones, Mann. Staples, Wheeler,
Williamson, Woodward and ZIm
The Gouley bill which passed
the house by a'large majority
Sow goes to the governor for ac
t- The measure provides for the
-elecueB -llf -delegates to
statewide convention where the
matter of repealing or continuing
the 18th amendment shall . be
voted on. Delegates will be chosen
by counties, each county having
one delegate for each 10,000 pop
ulation or fraction thereof. Dele
gates shall state on the ballot
whether or not they favor repeal
of the 18th amendment and shall
pledge themselves to vote as their
platform dictates.
MIAMI, Fla., March 6 (AP)
A bullet Intended for President
Roosevelt brought death to Mayor
Anton Jr Cermak of Chicago in a
hospital here today and about ten
hours later Giuseppe Zacgara, the
assassin, was Indicted for first de
gree murder.
The mayor died at 1:57 a. m.
after 19 days suffering with the
wound and many complications it
caused. Almost immediately the
Date county grand Jury met and
began hearing testimony on
which it based the murder indict
ment returned about t p. m.
A special train bearing the
mayor's body left here at f p. m.
The train is due in Chicago Wed
The mavor'a bodv waa born to
J the train in a cortege headed by
uniformed units of the Mahl
Shrine Temple and the American
Legion drum and bugle corps.
About 100 Chicago friends "ac
companied the family to the city
where Mayor Cermak rose from
an Immigrant boy to chief execu
Moratorium on
raxronage aiso
Roosevelt Plan
(AP) To his modified banking
holiday. President Roosevelt to
day added another, this one with
i fewer restrictions.
It proclaimed a moratorium on
. w 4nMf4A. r
fas-w vaee v g, va utw uisistkiVH a "
present financial emergency. The
.n i. t v.nwn
VasJVa, VJawsaww aw a aw "
that ho had no time for tho eon-
.i.... M imutiitniMfi baw
iwcjauvi w i''' "
.. it v. MMnti
those that may facilitate his ee -
. "awit-Ty
Dee ullll vf30Deil
' - - - - r
tAPl-W. J. "Eccles, general man -
mv ir inA nf T.nmMr eom.ia. Bawnuua
I pny: announced tonight that tho
Mnnna mill, at Dee. Ore., near! Chamberlain and reqnsstod tho
Hood River will open tomorrow
The mill, with a capacity of
10.000 feet, will, operato one
?od as aooa as snow ta off.
Limited B
Separate Scrip
Oregon Institutions
Due to Open Today
Issuance of Clearing House Certificates Will
Start as Soon as National Plan is
Known; Meier Order Renewed
PORTLAND, Ore., March 6
the state were scheduled to
stricted plan of operation, and
would be brought into general
of exchange.
The Portland clearing house
to issue scrip, but waa awaiting
word from Secretary of the Treas
ury Woodln as to how this would
be done. Bankers here appeared
to entertain some doubt late today
as to when such Issuance would
be made possible. It was general
ly believed, however, that scrip
would be In circulation some time
In the hope that Secretary
Woodin's plan might be ready
during the night, bank officials
left their phone numbers with a
clearing house "sentinel," and
were prepared to meet immedi
ately, no matter what the hour.
to speed the scrip plan on Its way.
Governor Julius L. Meier today
proclaimed a continuance of the
bank holiday in this state through
Thursday, in .conformity to the
national bank holiday. It was
said, however, that the etate hol
(Turn to page 2, col. 1)
Upper House Version Liked
Because it Adds Some
To Present Power
Utilities Commissioner Thomas
yesterday appealed in a letter to
Senator Burke for the passage of
Senate bill II with the amend
ments made by that body and
without the additional amend'
ments made by the house.
'It is now apparent that the
legislature Is not willing to give
the commission the authority, re
quested in the original bill," read
the Thomas letter. "The house
bill weakens the present law and
rives nothing in addition; the
senate bill provides some addi
tional powers.
"While I feel that ultimately
the commission must be given
complete supervision of the bud
(Turn to page 2, col. 1)
City Employed
Wage Reduction
Rushed Through
Suspending rules, the city coun
cil last niaht rushed through to
final passage an emergency oroi
nance revising the wage scale of
employes of the street depart
ment, bringing it in line witn me
1933 budget ' Maximum salaries
and waa-es were fixed as follows:
Dor catcher $90 per montn;
treet denartment foreman $125
per month, plant man $110, truck
and tractor drivers ana nusner-
min 84 ner day: rakers, sweepers
and common laborers $3.50 per
Clearing House "Money
Use in 1907 is Recalled
It was the night of October 28,
1907. that Governor Chamberlain
reclaimed a five-day holiday in
thin state to enable tno oanaa
of tho state to obtain tho needed
balances from eastern banks.
which baA temporarily suspended
i " -v Wga
I shipments ot com or iw"v,
I of the stringency there. He
I ww - , ,
continued tno nouoays irom ui
I tn tlm throura Decern oer i.
. MTU .
a itnn ox me uiea vi "
1 Statesman oi ui snow. .
I wnlla Ul incident cauvu 1-- -
gtir at tno ume u bouuv w.
miAiiiMd. after a few days there
wero only limited references to iu
. m. AAMflMMaA 9A
iTne aaiem wintw
I handle-local business as formerly
I but accepted out ot town Items
I ui l for collection. -
1 , Tho holidays were ordered after
J Portland had waited oa
i action.
While clearing house ceraiv
cates .were Issued by many cities
Salem did not Issue any ot Its
owa at that Ume; Portland Issued
"asset currency based oa ware
house receipts for . wheaVsalmon
aad other .marketable eommodK
anking to be Allowed
(AP) Banks throughout
reopen tomorrow under a re
with the prospect that scrip
use as an emergency medium
was ready on snort notice
Appropriations 4 Millions
Under 1931 Figure by
Ways and Means
Though legislative appropria
tions from the general fund of
Oregon for 1933 and 1934 recom
mended by the ways and means
committee exceeded the budget
suggested by Governor Meier,
they were more than 94,000.000
smaller than the similar appro
priations made two years ago for
1931 and 1932, according to a re- j
port placed on legislators' desks
The committee has approved
sums aggregating $5,564,256, as
against $9,755,048 for the previ
ous blennium. The governor had
approved appropriations of. $5,-
435,963, which was considerably
less than the aggregate require
ments recommended by Henry M.
Hansen, state budget director.
So-called non budget appro
priations recommended by the
Joint ways and means committee
for the current blennium totalled
$284,390. The largest of these ap
propriations was $150,000 for use
of the state emergency board. Any
money left In this fund at the ex
piration of the blennium win re
vert to the general fund. During
the past two years no money was
used by the state for emergency
purposes. -
The second largest non-budget
appropriation was $46,115 to pay
large number of miscellaneous
claims filed with the ways and
means committee.
With the exception of the
treasurer's eashlng warrants, city
offisers here were conducting
business as usual yesterday. Mark
Poulsen, municipal - Judge and
recorder, handled traffic ordin
ance violation cases and the other
affairs of his office as customerlly.
Building Inspector E. C. Bushnell
continued to issue construction
permits, and City Treasurer C O.
Rice accepted payments on lic
enses and assessments.
While payments were lower
than usual. Treasurer Rice re
ported over $300 in cheeks for
licenses and street assessments.
Money for cashing warrants waa
tied up In the banks.
ties. In Tho Statesman of Novem
ber 8 reference is made to this
"Some of the Portland clearing
bouso asset currency arrived ta
Salem yesterday. It is nor yet
thoroughly decided as to Just how
It will bo handled, if Poruana
were in position to pay the Salem
correspondents In gold there
would bo ao need for tho asset
currency here. However there is
not a business man or firm la Sa
lem but will bo glad to take tho
asset currency If tho bankers ean
agree among themselves as to how
they win handle it."
Tho currency came into general
circulation hero ' and over . the
state.' Tho bank holidays caused
comparatively little Inconvenience
here because local checks were
cleared; aad the " banks steadily
built ur their cash reserves. Tno
second day after, tho order It was
reported: " -. r
i The Salem banks were open
aad doing business as usual yes
terday. There Is ao excitement
hero and there were no withdraw-
als of consequence. Shipments of
money havo already begua toar-J orgeaey. 'after fenato.conrirssod;
t ; (Tura topago I. coV l) ,' slx aomlnatioas. v-
Issue Looming
l . :' '
National Certificate Plan
One Possibility; Policy
To be Decided Soon
President Turns to Draft
Of Measures to Place .
Before Congress
(AP) Long hours of unremit
ting labor at the White House and
treasury last night brought a
broad relaxation in the Roosevelt
banking ban permitting the basks
to reopen for new business and
easing the credit strain for the
payment of payrolls and food
stuffs. Buttressed by public acclaim
for his drastic step to preserve
the nation's gold supply and pro
tect depositors from hoarders.
President Roosevelt and his aides
had when they retired virtually
reached a decision on a method
for establishing a temporary me
dium of exchange through certif
icates backed by sound bank as
sets. A tentative plan to establish a
state corporation In New York
authorised to issue scrip against
such assets and deliver It to cre
ditors and depositors on a prorata,
basis received treasury approval.
The treasury attached a reser
vation that should it announce a
national certificate program be
fore Wednesday morning that
state corporation proposal wouM
be laid aside. This national piam
awaited an early morning confer
Mr. Roosevelt turned to th
drafting of his emergency legis
lative program to be presented to
the special session Thursday o
the last day of the fout-day bank
ing holiday.
(AP) In brief, the eight
regulations announced yesterday
(Turn to page 2, col. 1)
. PEIPING, China, March 6
(AP) China's defeated army,
driven back from Jehol city, has
formed a defense line against a
possible invasion of China proper
and will make its last stand 20
miles south of Koupeikow, Mar
shall Chang Hsiao-Liang's head
quarters said today. '
The town of Koupeikow guards
a gate through' the great wall 65
miles northeast of here and 50
miles south of Jehol city.
Fighting still continues in tho
province of Jehol, the Chinese re
ported. There was an engagement
at Hsifengkow Pass. 45 mile
southeast of Jehol city, and an
other near the town of Welehang,
near Chlhfeng.
CHINCHOW. Manchuria, March
6 (AP) A force of 700 Chinese
was wiped out yesterday, -Japanese
headquarters announced this
evening, in an engagement near
Welehang, 55 miles southwest of
Chlhfeng. The Japanese lost 10
dead and 29 wounded.
The Day in
By Tho Associated Press
.Presldeat Roosevelt relaxed
natioial banking holiday to
XKBtitutkms for aew bow
aad emergency payments
on foodstuffs.
Governors conference was toM
by .President Roosevelt a central
"clearing bouso for relief is to
be established.
Funeral service for Senator
Thomas J. Walsh were held, fa
senate chamber aad ottoadod
by rrestdess. Booeerels. .
. j- .
Seaata democrats renamed Reb-
tnsoa. of Arkansas, floor leader
ahd agreed to caucus rule to sup
port president's measures. :
r TJaeenDloTod
eatdOrl ba brokea heads aad Jajl .r
President Roosevelt held1 up ap
Balatmests durinr financial ess
BE O H 1
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