c '-J 4- 2 , BE THRIFTY 71 nuny tftaes the price f y.nr Statesman ubcrip Um by n&lng Statesmaon aI. ertisem?at u your bnriiur EIGHTY-SECOND YEAR : . . ... - . " " ; ' ". : ' ' - .-. V - --- . .. - . . -. - - - . ...... ......... ..... - ....... ? . - . . POUNOCD IQ3I - 1 1 J? AT 1 1 4 4 f i 1 --.. I ..;" - Session Terminated Early This Morning Closing Hours Hectic As Thomas Bill is Fought Over Special Election set For July 21 Over Sharp Protest The 37th legislative session, by even day the longest in all the years since Oregon became a state In 1859, necame history at 1:21 o'clock this morning. Following historic precedent, clocks in both houses were stopped at 5:55 p. m. Thursday and adjournment, when taken, was sine die as or 6 o'clock March t. Beginning January 9 after a pedal session which lasted five days, the regular assembly had sat 0 legal days, ajceeding by one week the 53-day mark of 1931 and being 20 days beyond the lim it set by law, the members serv ing the added 20 days without their legal $3 per diem compen sation. While frivolity marked the lob bies outside the senate and house chambers and singing interspersed the times when the houses were In session, the closing hours were hectic. In the senate the utility regu lators and the opponents of rigid legislation were in a die-hard struggle over the Thomas bill. In the house Representative Lonergan led a sturdy bu -unsuccessful fight to bring the general sales tax bill which he' had so ardently championed before the members week ago to a popu lar Tote early in June. Unable to break down a stubborn senate sentiment that the measure should not be voted upon until the next month, Lonergan capitu lated at t p. m. and moved adop tion of the conference com m t (TuraiJtQ,page 4, eol. 8) IS SEEK IN EVENTS NEW YORK, March 9 (AP) From office boy to president, the entire financial community to day was 1 discussing the Aldrich plan for sweeping bank reform, and the name of Rockefeller came often to many lips. The dramatic arraignment of certain banking and investment methods by Winthrop M. Aldrich, bead of the Chase National bank, appeared but one or a chain of in cidents showing that at least some leaders la the world of finance ere not opposed, but actually in favor of drastic surgery either In the form of legislation or vol untary action to remove un healthy developments. Aldrich's accession in January to the chairmanship of the gov erning board of the Chase bank, vras widely interpreted in Wall ctreet as definite proof of the Rockefeller Influence in the af fairs of this institution, the world's largest bank. Aldrich Is a brother-in-law of John D. Rockefeller Jr., who is the largest individual holder of Chase bank stock. Legion Protest Aimed at Power Given President PORTLAND, Ore., March 9 (AP) The Oregon 6tate depart ment of the American Legion and voiture 25 of the 40 and 8 sent telegrams to the Oregon congres sional delegation tonight express ing opposition, to the action of congress in Toting to President Roosevelt what they described as 'dictatorial authority" over vet erans' legislation. State Commander John B. Eak ln said their action was In re sponse to a message received from the national Legion head quarters stating that the "whole structure of veterans' legislation for which the Legion and other veterans' organisations have been working as placed In the pres ident's hands. Big Emergency Work Program Portland Plan PORTLAND, Ore., March (AP)-The Civic Emergency Fed eration, organization ot the un employed, today presented to ne eltr council preliminary plans for five projects proposed to be built with money from the self-liquidating project fund ot the Recon struction Finance corporation. The plans were for a municipal bus terminal, a sewage disposal plant, an additional airport, a central parking area and a Front street belt line tunnel. Total cost was estimated by the federation ROCKEFELLER HID egislative Clem Y eager in Jail on Charge Of Having Still Clem Yeager, 63, was locked in the county jail yesterday on a liquor manufacturing charge, fol lowing arrest by Federal prohi bition agents on tip from the sheriff's office. The agents caught Yeager at the still on his place a mile and a half west of Liber ty. A 15-gallon still and mash were taken, but no liquor, as It is said Yeager disposed of his output almost as fast as he made it. This is Yeager's second arrest on a liquor offense. He will likely come up before U. S. Commis sioner Lars Bergsrik today. T Near-Capacity Audience on Hand; Gershkovitch's Work Wins Praise Despite the bank moratorium Salem greeted the second sym phony concert presented by the Salem Philharmonic orchestra as sociation with close to a capacity house at the armory Thursday nisht. Under the seemingly inspired baton - of Jacques Gershkovitch the young musicians presented the delicately imaginative overture to Weber's "Oberon" with excellent understanding of both theme and Instruments, and followed this with equal appreciation for its commanding opposite, Tschaikow sky's powerful and compelling Marche Slave, Op. 31. Another pleasure on the pro gram was the repetition by re quest of "At Church", another of Tschaikowsky's which was espe cially arranged for strings, wood wind and horn by Mr. Gershko vitch. It met with the same splen did response from the audience as at its first presentation on the first concert program. Miss Mary Schults as concert master of the orchestra in solo presentation of "Berceuse", Cesar Cui, more deeply entrenched her position as an artist of splendid proportion in the minds of her al ready admiring Salem audience. Mark Daniels, baritone of Port (Turn to page 4, col. 6) LABISH BINS SELL AT 71 CENT F E LABISH CENTER, March 9 About six cars of onions were brought here Wednesday In a spe cial block at 70 cents a hundred, or 10 cents higher than the pool price for the first of the week. Whether the general market Is In a condition to stand the Increase, or whether the 70 cent purchases were made to fill a pinch order is not definitely known here. The 250 cars reported nnsold earlier in the week included the entire Oregon crop of which a little more than half remains un sold here, surveys indicate. Sales have been quite liberal within recent weeks. SYMPHOIUY GROUP'S mm 00 Narcotic Runners Kidnap Customs Officer, Charge MEDFORD, Ore., March 9. (AP) The victim of a brutal kidnaping attack by narcotic smugglers and gun runners, E. L. Balllnger, United States customs patrol officer from Belllngham, Wash., was found in the woods near the Oregon-California line today, handcuffed to a tree. Two men In a small blue coupe abducted him near Belllngham at noon yesterday, beat him Into un consciousness, sped with him to southern Oregon and left hlsa, manacled and bleeding. He was found today by a fanner who heard his cries. After receiv ing treatment for severe head and face lacerations he departed by nlane for Seattle. Balllnger declared the kidnap ers car carried a large amount oi narcotics, two sub-machine runs and a package containing six re volvers.. The weapons were In thir orirlnal factory wrappings. - .The customs agent Indicated he knew the men who abducted him. He said he had been waiting for their car about, SO miles south et the Canadian line. As It drew up he ordered the driver to halt. He started to search the rear com partment when one ot the 'men knocked him unconscious with a 1 - f' THOMAS BROAD PIERS Large Control of Utilities Is Granted but not Full Dictation Recapture Clause Restored; Commissioner is far From Satisfied After a hitter fight which ex tended almost throughout the en tire session, both sides on 8. B. 19 the mUCh-dl8CUSSed Thomai uiwuy measure composed xneir auierences sumcienuy at l a. m. this morning to pass the amended measure through both houses. The bill was taken from the ZLTtl 7' . , c i SiJrnii? 'T'v1 fv8?! d. pir?:d bZ u ujiiiei uuubb. r rum inert II went again to the house and thence to conference As the closing hours of the ses sion approached, conferees hud- aiea in committee rooms or In a group In the second floor lobby. battled over each contested point of the bill. Commissioner Thomas sat in on most of the conferences. Amendments agreed to after the conference are: Lareer control over ntiHtv hud- gets is given to the commissioner althoueh not all items can be su- pervised. The recapture clause is re stored. Cost of Investigating a utility is limited to one-half of one per cent of the utility s gross earn ings for the prior fiscal year. 'The bill is only a crumb of the regulation needed," Commis sioner Thomas commented after the measure had been approved. Several senate leaders in the utility regulation fight were In clined to view the measure aa a constructive one and fairly satis factory. Senator Burke said the house had emasculated the bill and that it was worse than the present law. "If you want to take all the pow ers away from the utility commis sioner you should pass this meas ure", Burke declared. An lnfer (Turn to page 4, col. 7) AID TO TAXPAYERS After many amendments and a near-deadlock, the house and sen ate at 10 p. m. Thursday night concurred in approval of S. B. 75 which waives interest and penalty on all taxes delinquent for 1930 and theretofore Taxpayers are given five years to pay these back taxes, the pay ments spread over 10 equal per iods. When the taxpayer makes an agreement to fund these taxes he agrees also to pay eight per cent on the new balances and to pay a two per cent penalty if he fails to pay promptly any one of the ten instalments. The bill was carried by a small majority in the house after a number of members had called the legislation extremely unfair and dangerous. State Pay Slash TZill tc nnrni)7 Dill IS ipprOVeU Both houses late Thursday ap proved the 5 to 30 per cent wage cut previously agreed upon by the Joint ways and means committee for all state officials. The reduc- tlon Is for the 1933-1934 bien- nium. The state board of control is authorized to make needed ad justments. Appropriations for all departments have taken this re duction Into consideration. blow from a revolver butt. He was trussed and thrown into the rum ble seat which was locked, and the smugglers sped away. He was nearly suffocated, he said, by heat and gas fumes. Throughout the day and nlgnt the bandits drove at high speed, Tiefore reachinc the highway checking station In California, Just over the line on the Pacific htrhwAv. tbe r&r stonned and Bal - IN D LL PASSED HOUSES CONCUR linrer was drasrsred out. He saldlaMRfnn wB li7i nr nnroxl - the men offered him $2,000 if he would "forget" the ease. They threatened him with death if he refused. The narcotic runners nnany ae - elded, however, to manaeie tne officer to a tree some distance from the highway. They left a bottle ot milk about 10 feet from him. When found today by H. L. Oi ler, Hornbrook. Cal farmer, Bal llnger was suffering acutely from head Injuries and lacerations and was weak from lack ot food. He Indicated one of the smug glers was known as "Manning, abont 35 years old, tall and des - cribed as "a handsome blonde." The other man was about 4 S. heavy set and extremely dark. The two rode In a blue coupe which had a Us top. Half Billion Slash In Federal Expense Roosevelt Pro gram Veterans Appropriations to Bear Brunt of Economy Move; General Salary Drop Also Expected to be Sought WASHINGTON, March 10 (AP) President Roosevelt presented to congressional leaders this morning a bill calling for $500,000,000 cuts in The reduction win be made largely in veterans appro priations and in salaries. Senator Robinson of Arkansas, the democratic leader, made the following announcements after a three hour conference at the White House. It is expected that the presi dent will send to congress today a message having relation to the hnif t ar. InnVlnr tn Imnnrtinf and gubstantial reductions in ex nedltnre for nensiona. veterans compensation, disability allow- anres and emergency officers' re- Mmj Coupled with It there is likely to he a plan for salary reductions, the total amount on both accounts being In the neighborhood of 1500.000.000. The president has asked that llTe lm.Jh "br"? to make the reductions, and that Is the plan. One member of the conference BaY? ine. KxseTe" program aiso W1" embrace proposea ovu,- 000.000 bond issue to create a forestry corp" to put In motion a reforestation program looking to tb employment of 500,000 per- sons or an ages. Bulging Bags Brought Into Federal Reserve Bank; Publicity Feared NEW YORK, March 9 (AP) Golden treasurers, after play ing truant on a hoarding holiday, crept back to the secure vaults of tr,i t-. hr. the Federal Reserve bank here today. Beginning Monday, It was un officially estimated that close to 130,000,000 in gold coin and gold certificates had been received by the central bank from member in stitutions or persons, either conscience-stricken or fearing public exposure and confiscatory taxa tion, who felt that paper curren cy was the safer under the cir cumstances. Most of this huge sum was brought back yesterday and today. Afoot, by taxicab and limousine. the hoarders came singly and In pairs. Some had guards and some had none. They carried suit-eases. brief-cases, canvas bags and old (Turn to page S. col. 8) State Extempore Contest on Here Tonight, Waller Willamette university will be h08t for the annual extempore speaking contest of the Iintercol leglate Forensic association of Oregon at 8 o'clock tonight at Waller hall. Representatives of five institutions will participate: Oregon State, Pacific and Linfield colleges. Pacific and WiDamette universities. Ralph McCullough Is the Willamette entrant, coached 1 by Prof. Herbert E. Rahe. The speakers will be given one hour in which to prepare their topics, all centering on the theme, -"American Constitutional Liber- ty. Coaches and speakers will hold a banquet at the Argo hotel at 5:30 p. m. In the past three years, Wil lamette entrants have twice taken first price and once, second, in these contests. Senate Expense Lower Although SeSSlOn LonSer It cost $19,171 to conduct the state senate during the 1933 leg islative session which lasted 59 days, as against $24,171 In 1931. when the session lasted 53 days, diem committee tiled late Thurs- Aa-r nip-ht h Rntnr strvw. I chairman of the per diem commit- tee. I Th tn1 vtnr fnr fh 1091 I mately 30 per cent. No overtime I was allowed employees. Tne report eovered the per diem I and mileage of all legislators and 1 employees. Guarantee For Deposits Urged Both the senate and nouse late Thursday night adopted a Joint memorial urging congress to en- act legislation guaranteeing bank 1 deposits during ine emergency as I a method of restoring confidence (to the people. I Copies of the memorial were or- dered sent to Oregon's delegation RUSH TO RETURN THEIR 60LD In congress. federal expenditures. BOTH HOUSES AGE 1 SALES TAX BILL Manufacturer - Wholesaler Rates Reduced; Calls For Referendum The general sales tax bill, pass ed in varying form in both houses. received final concurrent approval yesterday when the legislature agreed on Its conference commit tee report. Final changes Includ ed a reduction of the tax on man ufacturers and wholesalers from one-half per cent of gross sales to three-tenths of one per cent of gross sales, the same rate provid ed for in the bill conidered by the Washington legislature. The amended bill also excludes the tax from sales made to gov ernment bodies. The senate struck out and the house conferred In the provision that the tax should apply when partial cash sales were made only to the cash por tion of the transaction Under the revised bill, the first net moneys received are in lieu of the last half of the state's tax for this year. The next returns are in lieu of the state's half-mill tax for the state bonus commission and then $250,000 is applied for unemployment relief. The real due thereafter goes to the coun ties. . ' h Z, tXl ni7 clause. If approved by the people, The bill carries the referendum it becomes operative July 1, 19 3 S. PUBLIC RELATIONS The annual public relations banquet for which the Business and Professional Women were hostesses Thursday night at the Marion hotel was attended by 105 people which Included club members and guests. Mayor Douglas McKay re sponded to the address of wel come by Ruth Moore, club pre sident. C. A. Howard, state superin tendent of schools, addressed the group. Musical numbers were pre sented by Garland Hollowell ac companied by Mrs. Hal E. Hoss, a group of club chorus numbers, and quartet numbers by Frank Zlnn, Dr. A. D. Woodmansee, H. R. White, and Dr. O. L. Scott. This affair is one of the out standing social functions of the observance of the national week. and is designed to bring togeth er in social manner the business women and other service clubs and business men of the city Oleo Tax Passed By Wide Margin In Upper House Twenty-four members of the senate Thursday afternoon ap proved a touse bill which places a four cents per pound tax on all oleomargarine fjanufactured and sold In Oregon. The original bill passed by both houses exempted oleomar garine made of domestic animal fats. Warned ot an executive veto, house members recalled the which was held to be favorable 0,11 nd removed the exemption I to one manufacturing concern in "S! Ji? mw wits a yMiPib w wee v at wmmu that It was unfair to thousands of people In Oregon unable to pay for hotter. Pwpr Aid Bill w r w - Tahiti1 5?Prtari irw., 1 The senate Thursday night laid tn t01 house bill Intro- duced by Representative Ryan providing for the creation of a state power commission for the development ot the Willamette river. Late Sports SACRAMENTO. CaliL, Uareh t (AP) Fredd'a Miller, world's featherweight champion by edict ot the N. B. A., punched his way to an easy ten round decision over little Dempsey, Philippines, here tonight. Dempsey weighed lzf and Miller IS 8 la the non-title i fight. The National bank holiday kept the crowd down to a fl.099 'konse. BANQUET ENJOYED BANK I BILL IS AFTER REQUEST Holiday Extended as Banks' Right to Reopen Given Closer Scrutiny Money Issue and Control of All Institutions Main Points in Measure , WASHINGTON, March 9. (AP) President Roosevelt, keep ing pace with a congress swiftly enacting his commands, tonight signed tne gigantic emergency banking bill and prepared imme diately to use its powers for cur rency expansion and a reopening of banks Judged sound. The bill was law within eight hours after his special message was read on Capitol Hill. The sen ate enacted it at 7:23 p. m. Ex actly 73 minutes later his signa ture was placed upon It. Although the president had a list of some of the banks Judged entirely solvent and ready for re opening, he decided tonight to ex tend the banking holiday indef initely. The extension, It was said, would allow a wider opening of Institutions than would be the case If tbe action were taken to morrow. Powers of reorganization also might be used within that time. Members of the delegation who brought the measure to the White House remarked that its passage probably constituted a legislative record. The house rushed through the bill with a tumultuous vote of "aye" at 4:05 p. m., acting un der a unanimous consent agree ment that permitted no amend ments. Representatives did not even use the total of 40 minutes debate allotted. Not a single "no" was heard in the viva voce vote. In the senate there was Blight delay and on a roll call seven members voted against the meas ure as compared to 73 in favor. Two amendments were rejected, one by Senator Long (D., La.), to authorize the president to take state banks Into the Federal Re serve system. Another by Senator Gore (D.,-Okla.), would have made state banks eligible for as sociate membership for two years. The seven voting against on the final ballot were Borah (R., Ida ho), Dale (R., Vt.), Carey (R., Wyo.), LaFollette (R., Wis.), Nye, (R-. N.D.), Shlpstead (F-L Minn.) and Costlgan, (D., Colo). NorJbeck of South Dakota, former chairman of the banking commit tee, was paired against. Here Is a partial recount of what the bulky bill contains: Authority for the federal re serve board to issue through its (Turn to page 4. col. 5) WESTERN STATES SAN FRANCISCO, March 9 (AP) Rapid developments in the national capital left far west era financiers and state officials uncertain tonight as to -the im mediate steps they may take in the banking emergency. Scrip issues already printed in Los Angeles and Seattle were held in readiness and clearing house officials in the former city tentatively set tomorrow morn ing as the time for turning J50,- 000,000 In such certificates Into the channels of trade. Seattle banks were supplied with $15,- 000,000 in scrip. Clearing house officials in both cities said the proposed issues de pended upon federal regulations and that they accepted Secretary Woodin's statement on the ques tion as authority to proceed. LI 8 1 Method ot Distributing New Money Announced WASHINGTON. March 9 (AP) The new money provided for In today's emergency bank legislation will flow out to its users normally, to be paid over the counter ot such banks as are opened In exchange tor checks Just as all past currency has been paid out. Behind that simple act, how ever, Is the process by which the bills how from the treasury's engraving plant to the banks of deposit. The bills will be Issued to the IS federal reserve banks by the treasury la exchange for govern ment bonds, notes, drafts, bills ot exchange and bankers' accep tances. The notes will be given the re serve banks to the full face value ot the United States obligations tamed In and to 10 per cent of the "estimated aloe' ot the notes, drafts .etc The reserve member banks win pat p similarly acceptable assets with the reserve bank of their district In exchange for the cur rency they need. la exceptional eases where the member banks have nek assets the reserve bank WOODIN INVITES APPLICATIONS TO RESUME BANKING No Permits to be Issued Before Saturday However, Says Treasury Chief, and not all Sound Institutions Will be Accredited by That Time; new Presidential Holiday Announcement is Explained Regulations Covering Reopening to be Released at Once; Senator Glass Indicates State Banks to get Chance To Come Under Federal Reserve System; Secretary Says no Objection to Scrip WASHINGTON, March 10 a statement early today the treasury to open sound banks of the country as rapidly as possible, and invited them to make application for re opening. The secretary said the treasury already has taken steps to secure information as to the condition of the various A banks of the country but that it was found the completion of assembling the information and of arrangements for th banks to resume their functions would take some time. It was therefore decided, he said, not to authorize any reopen ings before Saturday, March 11. BIKING HERE S UNCHANGED Governor Extends Holiday For Rest of This Week; Orders are Awaited There was no change In the functioning of banks In Salem yesterday. Withdrawals of curren cy were allowed in legitimate cases conforming with the orders of the secretary of the treasury. Customers obtain access to their deposit boxes boding the noon "hour. Bankers here were awaiting word from Portland, San Fran cisco and Washington for the re laxing of the restrictions which have held for three days this week. Governor Meier extended the state holiday for the remain der of this week. An Interesting situation will arise if all banks are required to deliver their gold and gold certif icates to the government. Ladd and Bush bank has held substan tial gold reserves for many years. It never Joined the federal re serve system; instead maintained its own gold reserve. Whether re lease of this gold to the govern ment or the federal reserve bank will be a requirement Is not known at present. All banks how ever are forbidden to pay out any (Turn to page 8, col. 8) Runaway Lad's Jaunt Ends at Police Station Irked at teachers' scolding for playing hookey, Ronald Whelp ley, 12, of Portland route two, ran away from home Wednesday. His wanderings ended at Salem police headquarters after he was picked up by patrolmen, notified by Portland police radio that the lad was missing from home. Ronald's parents came here yes terday afternoon to take him back. home. O- may make their advances on time or demand notes satisfactorily se cured. The amount of currency issued la normally regulated by the vol ume of bank withdrawals. As the demand for cash Is now consider able and as gold certificates are not to be paid out for the pres ent, the requirements for new money are calculated to be con siderable. . Another method ot putttng money Into circulation Is for the government to pay its obligation la cash. Relatively small amounts ordinarily reach circulation In this way, however, and there has been no indication that this me thod would be adopted In the present situation. The bill also win put the new money Into circulation by order ot the secretary of the treasury. by exchanging It for gold and cold certificates, either bank re serves of prlrste hoards. The measure gives the treasury spe cific authority to call la such re serves or hoards whenever It 'de cides the situation demands It. Penalty Is provided tor anyone aot complying. Issues (AP) Secretary Woodin in said it would be the policy of He said regulations governing re-openings and other subjects covered by the emergency banking legislation would be published im mediately. The statement of the secretary issued early this morning said, in part: "The emergency banking legis lation passed by the congress to day (Thursday) is a most con structive step toward the solution of the financial and banking dif ficulties which have confronted the country. The extra-ordinary rapidity .with which this legisla tion was enacted by the congress heartens and encourages tbe country. It will be the poller of the treasury to permit as rapidly as possible the opening of sound banks. There are, of course, many thousands of such banks which will promptly be restored" to the performance of their normal frac tions. "The treasury has already tak en steps to secure Information through proper authorities as to the condition of the various banks of the country and Im mediately Invites from the beaks the applications for re-opening. (Turn to page 8, col. 7 not OF JEHQL NOT YET COMPLETE TOKYO. March 10, (Frtday) (AP) Chinese troops were ap parently still holding Kupeikow, the pass leading to Pelping in the Great wall of China, today, despite earlier Japanese resorts. The Japanese were considering extending operations into north China proper In order to attack Kupeikow from the rear. (By the Assopiated Press) Having conquered the provise of Jehol, Japan must turn new to clearing that territory of what is left of the Chinese army. That drive is to start Immediately against the last of the defenders, pushed back to the Great wall. Chinese headquarters at Pelp ing insisting Its troops had not yet surrendered completely, but were moving against the Japan ese from three directions fn as) effort to drive the invader beck upon Jehol city. The Day in Washington - By the Associated Press Congress speeded action om emergency banking legJslatio asked by president Roosevelt when special session con vetoed at noon. ; e Senate adjourned impeachment trial of Judge Harold Londerback of California sntil Monday be cause house was not ready te press Its prosecution. Senator Korrls (Rep.. Neb.) Introduced legislation to carry oat President Roosevelt's Tew semsB valley industrial de velopment project. Conference called by Chairman Morgenthan of farm board de tarred actios on plans for trans-, ten of wheat futures tn anticipa tion of early resumption et bask ing activities. President Rooe e!t dlscase ed iw-ergasdxatlosi quesOtf wtth secretary of war, agrW V; cattare and interior.. 1 ; i - . k a If, 121,000. m