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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 22, 1933)
' ' ; . v -J- ' v-v.' " v y :- " ' " " ' . ! ' 'pounded ?ia5i r- -31 v- . - . - ( Accident Insurance , ' Too cannot afford to be without the Travel and Traf fic Accident Insurance which Is toned to Statesmaa sub scribers for only f 1 a year. .WEATHER ' Cloudy today, and Thurs-. day, continued cool;; Max. Temp, Tuesday S3, Mia. 83, ' river feet, ratn. .05 inch, south west wind""1 i. EIGHTY-SECOND YEAR Salem, Oregon, Wednesday Morning, March 22, 1933 No. 383 i I: liSB Former National City Bank Chairman Arreted on Federal Warrant Data Obtained by Senate , is Basis; Roosevelt Backs - Up Plan, Announced NBW TORK, March 21 (AP) Charles , E. Mitchell, resigned chairman ot the National City bank, was arrested at his fifth avenue home tonight on a federal warrant charging wilful attempt to defeat and evade the Income tax law. The warrant was signed by Federal Judge Alfred C. Coxe and was served by United States uarsnai Kaymona J. Mulligan. It was based on an affidavit and complaint by Thomas E. Dew ey, chief assistant United States attorney, and charged specifically that Mitchell attempted to evade a tax of $657,152.40 on a net In come of 92.823,405.85 for the year 1929. WASHINGTON. March 21. (AP) Attorney General Cum' mlngs today Issued orders for the arrest of Charles E. Mitchell, for mer chairman" of the board of the National City bank of New York, on charges growing out of alleged violations of the Income tax law. District Attorney George Z Medalie of New York investigated the case at direction of the attor ney general - ana gave direct or ders the warrant for Mitchell's ar rest be obtained. The attorney general announced tonight President Roosevelt "has been kept advised of the develop ments and they -have his ap proval. The statement of the attorney general was Issued tonight sev eral hours after he had conferred at the White House with Presi dent Roosevelt and had announc ed there the intended Issuance of a statement on the New York banking situation. " . The former headof'the-tfatlon-al City bank testified several ".reeks ago before the senate stock market Investigating committee that he had sold several million dollars worth of stock in the Na tional City bank to a relative at a loss and bad charged this loss against his Income tax returns. thereby avoiding payment of taxes for that year. Shortly afterward he told the committee, be bought the stock back. William D. Mitchell, then at torney general, began an Investi gation of the banker's case on basis ot the senate testimony. Last week President Roosevelt gave his approval to a continuance of the investigation by the senate committee, and at that time the White House said Attorney Gen eral Cnmmings had been Instruct ed to maintain close contact with the committee and prosecute where violations of the law were Indicated. Livestock Show Goes on Despite Denial of Funds PORTLAND, Ore., March 21 (AP) The Pacific International Livestock Exposition will be held this year, O. M. Plummer, general manager, announced today fol lowing the annual meeting ot of ficers and trustees. Decision to hold the exposition here as usual was made despite the fact that the Oregon legis lature did not Include the regular 137,500 appropriation in the state's budget this year. Cost of the show and" the premium list will be covered by the exposi tion's share ot the net receipts anticipated la the parl-mutual racing bill approved by the legis lature. The exposition Is to. re ceive 17 per cent of the net re ceipts up to 1100.090. i . . i McNarz Attends Big: Dinner for ' Famous Pianist WASHINGTON. March 21 (AP)- Ignace PaderewskI, polish pianist and' one-time premier of his country, "was the guest of hon or tonlsht at the first dinner in the state dining room of the whit House since President Roosevelt took off ice. anions- the cuests were the Pol ish ambassador. Stainlslaw Patek; Keretanr and Mrs- Hall, Senator Robinson of Arkansas, and Mrs, Robinson, Senator McNary of Ore gon, and MrsrMcNsjcyijf.; " ' M . IpREEZES TO DEATH ANCHORAGE, v Alaska, March 11-1(AP Taken 111 on an Alas ka trail In the Upper Kuskokwia eountrv "several days ago,, Hugh rerrr. a tranner and prospector. frose rto death when he "was able to build sv ere. ; u ; . ;T -tJiti SHOT FATATjLX VTXi RA." O r e March 21 (API Cooner . Murrill. 10, was shot .accidentally and killed today Just -ratur he had left the Deer Creek school; He was tne soft ox nr. ana Urs.; lArley' JdurrJir ot Faraaise. Super - Stars of Films Fall Out But No Hint of It in This Photo .1 ' I No clouds, either of salary cnt iumwiuiMvwi .www w vy uvi mn Fairbanks, Jr and his wife, fe- A ? I ? Jr f " S months ago on their return front Europe, Now they are reported separated with a divorce looming, Doug junior faces a 950,000 alienation of affections suit, and financial worries which are now. BEEF! CllL LACKS I Senate Recessed, Garner is Unable to Sign After Passage in House WASHINGTON, March 21. (AP) Groomed by congress for the statute books, the beer bill was ready tonight tor delivery to the White House, except for a technicality that will block its en actment until tomorrow and' de lay flow of the foamy beverage bb til April 7 the laeh ef a signature from Vice - President Gamer. Congressional action was com pleted with swift adoption by a tumultuous house of the confer ence report on the measure legal izing 3.2 per cent beer and wine and levying a tax of $5 a barrel on each. The report was approved yesterday by the senate. . President Roosevelt was ready to sign the measure tonight, but the senate, with little to do, re- (Turn to Page 2, Col. 1) 111 OF OFFICER LONDON, March 21 (AP) All this afternoon the doors of the hall at the Duke of York's mil itary school In Chelsea, where Lieut. Norman Baillie-Stewart is being tried on charges of having sold his country's military secrets, were locked and guarded. Secret witnesses were giving evidence. Some of these witness es are foreign subjects and, ac cording to the prosecution, their lives might be Jeopardized If their names were published. Only once during the afternoon were the doors opened and then two women came out and drove away in . a taxlcab. One was weeping. At a public session of the trial this,, morning counsel for the young lieutenant inumatea tnai third degree methods, had been used in the investigation. Lieut. Col. P. N. Syms, who conducted the preliminary Ques tioning ot the accused officer, de nied that anything resembling the third degree had been used and said Lieut. Baillie-Stewart had not even been cross-examined. 1 1 IIS BHD IT Parade, Street Programs Planned, Spring Opening Tomorrow night Salem will get itself all dressed up for spring. Stores will proclaim the. official 'spring opening" which heralds the beginning of the shopping Beason. The next day or two win dows will be-darkened while dee- orators "do their stuff" In dress ing them with the most beautiful of the season's offerings. Fashion will have her way spite of un toward events; and with skies clearing- la business and; in na ture, people will satisfy again their wants for fresh, new things. New automobiles will make up the street parade which opens the festivities ' tomorrow evening. Heading' south on Commercial street with-the Salem drum corps leading the way,-cars from Valley Motor - company,' State Motors, McKay, Chevrolet company,- Bone- steele Motor company, - Otto J. Wilson and William E. Anderson, will ' parade through the down town -streets. Windows will be unveiled at the same hour and -present spring fashions to interest -the thousands Elslnore the night ot March It. 3" V AV court actloa or rumors of marital ir-a eisasi" va Joan Crawford, was made several 910,000 false imprisonment suit, common to all movie folk Just Some Modifications Noted: United States Support Is Desired by all PARIS, March 31 (AP) Premier Mussolini's peace plan was accepted In principle today by the French, who made modi fications which have been referred to Rome. - The moral support of the United States tor the four-power peace pact is ardently desired Prime Minister Ramsay MacDon- ald of Great Britain, told the press after all-day negotiations with Premier Edouard Daladler and Foreign Minister Joseph Paul Boncour of France. Sir John Si mon, British foreign secretary, also took part in the conversa tions. The French ministers said In a communique they desire to see tne lour European powers France, Britain, Italy and Ger many cooperate to keep peace within the framework ot the league of nations. Mr. MacDonald, explaining the reasons for the four-power initia tive, said tne Hruisn policy was to seek a more neighborly-feeling Europe. When he was in Rome last week end, he continued, Pre mier Mussolini gave his views on this subject and "these, with our own and those of the French, now are being discussed." The prime minister asserted that no special views were being (Turn to Page 2, Col. 1) Not Guilty but Arrested Again; Give Up Gloves Though William Taylor and Paul Hingdam, transient youths charged with shoplifting, were found not -guilty in justice court yesterday afternoon, they found they were not welcome to remain in Salem. Inspector Orey G. Cof fey took them into custody after the trial and advised them to leave the" city, else face a va grancy charge In municipal court. The young men were found not guilty, but two pairs of leather gloves officers took when arrest ing the pair were returned to Schaefer's store after the trial. Martin Ferrey was their attorney. ot people who troop down town each spring and fall to keen In touch with the newest In merch andise. Street entertainment . features will be given at three points: in tersectlon State and Liberty; Lib erty street In front ot Pepco; Commercial street In middle .of block between Court and State. A Polk ceunty haywire orchestra is being arranged. Zollle Volchok's "Mickey Mice" will give a mixed program: Art Stubblefleld, Chuck Bier, Virgil Harrison, Cart WH Hams, with Marian Draper for ac companist. Miss Rosa Lee Nus baum, Portland entertainer, will give tap dancing and song num bers. The same program will be presented at each- point so all the people may see It. In addition Sa lem high school band, Scotch kil tie band, and the drum corps will provide music The Ad club dance at the Crys tal Garden will come at I o'clock. - An indoor fashion ahew with tlvtn mndAla will b rfves al the MUSSOLINI PLAN IS BACKED IN FRANCE GAG PRQTES TED BUT FARM BILL SURE Relief Measure Admittedly Radical but Roosevelt Lead is Followed Patronage Feature Fought By Snell; Little Said On Plan's Merits WASHINGTON, March 21 CAP) The big house demoeratic majority today pushed the ad ministration farm relief bill to ward certain passage tomorrow. In hours of debate scarcely a moment was devoted to analyzirH provisions of the intricate Roose velt plan for boosting farm buy ing power. But In a continuous procession, member after member arose to tell why he was voting for or against the measure. Mostly It was a case of "follow the president." Bankhead (D., Ala.), sounded the keynote when he called up a rule to prohibit shifting even a comma in the 19 page measure. He frankly an nounced the rule "drastic" and the bill "pioneering." Then he de clared, turning to the big dem ocratic majority: "This is a part of the demo cratic program under the leader ship at the other end of the ave nue. Let us pass it here in the ho;ise." Snell. minority leader, labeled the plan "a pure democratic pa tronage bill," while Clarke, his republican colleague from New York and ranking party member on the agriculture committee, de clared : "Filled with horrors and hell- lshness as it is, I'm going to sup port the president." Chairman Jones of the agricul ture committee began his remarks with the statement that "in ordin ary times I wouldn't support a measure of tnis klna." "But we are at war," he added, "and while this war is on I'm go ing to follow the man at the oth er end of the avenue who has the flag in his hand. I don't think the bill can make things worse. God - XTunr to Page 2, Col. 2) IN HITLER'S HANDS BERLIN, March 21 (AP) The Reichstag convened today to sign its own death warrant and the death warrant of popular gov ernment in a session Intended to last only a few days. All Germany blazed with na tional spirit in celebration ot the advent of this first federal legis lature completely controlled by Chancellor Adolf Hitler'--fascist nails. Reichstag met in a ceremony ot consecration, attended by Presi dent Von Hlndenburg, the new chancellor and representatives of the old imperial house. The venerable president sound ed an impressive call for a na tional rebirth of the soul for the weal of a unified, free and proud Germany." The spirit of Frederick the Great was invoked, and the spirit of the drill field pervaded the scene. But Chancellor Hitler appealed for foreign amity. "We who re alize what sacrifice war entails desire to be honest friends of a peace that will at least heal the wonnds from which all are suffer ing," he said. House-Cleaning To be Thorough Says Secretary WASHINGTON, March 21. (AP) A thorough housecleaning for the labor department by the new secretary. Miss Frances Per kins, has swept away almost at a single stroke most of the immi gration inspectors, and, she indi cated' today, this is only the be ginning of a general reorganisa tion. Included in her realignment will be a complete shake-up in the employment service, a scien tific survey of the statistical com pilations so that ' the man on the street can understand" and even further revisions ot the Immigra tion service. Industry Income And Corporation . Levy is Favored TOPEKA. Kan.. March S 1. (AP) A new form ot taxation for Kansas levies upon Indus trial and corporation, incomes - was approved tonight by the legis lature. Governor AiriM-anaon said he would sign the bilL ; The rates, retroactive to Janu ary J, start at 1 per cent for in come above 1750 received by sinxle persons' and above. $1500 received by heads of families. The maximum is 4 per cent, corpora- I tlona Will be subject to a, tut 1 per cent tax noon net income. PASSAGE 111 POWER PUCED Spaulding Mill Here to be Improved if Case won, . Examiner is Told Various Arguments Listed For Commissioner When Issue Heard Here . . Operation ot the . Charles K. Spaulding Logging company here if a freight, rate comparable to the rates furnished other mills on ' their logs could be obtained, was promised yesterday by Fen tiiss Hill, company manager, In his testimony given before A. F. Harvey, transportation examiner for the public utilities commis sioner. Hill was one of several witnesses presented yesterday by the mill company In the Initial day of its hearing before the com missioner. The company has requested that the existing rate of $3.90 a thousand on logs from Olson to Winona be materially reduced. Defendants In the rate hearing are the Valley & Siletz railroad and the Southern Pacific. Hill declared that a $2 rate was as high as the mill could pay and meet existing conditions. He said if such a rate were granted he would proceed to modernize and improve the mill here and would resume prodnction. Hill said that Investigations since he became chairman ot the Spauld ing board of directors and gen eral manager, had convinced him one principal reason the mill could not be operated profitably was the $3.90 freight rate which mnst be paid on all logs shipped by the mill from its Polk county holdings to the mill property. Charles K. Spaulding, long time operator of the mill and a major stockholder, testified that the mill had ' had an unusually successful record over the last 30 years and had operated more con tinuously than the majority of lumber mills In the Willamette valley. He said the mill could resume-cutting 4flhe freight rate could be reduced. Representatives ot the Oregon Pulp and Paper company testified that the mill's resumption would materially benefit them since hog fuel could be furnished whereas the fuel must now be brought from long distances. Additional testimony by Inter veners for the plaintiff inclnded C. E. Wilson, representing the Sa lem chamber of commerce, and Milton Meyers, representing the county committee on unemploy ment relief. Both testified to the need of the mill for employment of men in this community. William P. Ellis, handling the case for the Spaulding interests, said he thought three days would be required for the testimony on (Turn to Page 2, Col. 3) SEATTLE TOSSEBS SANTA CRUZ, Calif., March 21 (AP) Pittsburgh's Pirates went on a hitting junket today to defeat the Seattle Indians 19-5 in their exhibition game here. At the end of the eighth Inning the Coast leaguers had not scored a run. Larry French, Pirate southpaw, twirled masterful ball for eight frames, allowing five hits. He weakened In the ninth to be nick ed for six safeties and the five runs. Finney, French and Piet hit homers for the National leaguers. The Indians annexed two home runs, Manager-First Baseman Burns getting the first and Jnnk Walters, pinch hitter, the other. Late Sports PORTLAND. Ore., March 21 (AP) - Doc Snell of Tacoma, Wash., gained a technical knock out over Al Rossberg ot Great Falls, Mont., in the eighth round ot the scheduled M-round main event on tonight's fight card here. Snell weighed 125, three pounds more than Rossberg. Sig Ecklund, 15, Los Angeles, won a technical knockout over Verne Wilton, 1(4, Seattle, In the fifth round ot the scheduled C- round seml-windup. Louis Nel son, IS 5. Portland, and Tiger Cody. IS 3, Butte, Mont., fought rounds to a draw. Harry Wills, 143, Longview, knocked out Jock Henderson. Its. Scotland, in the first round. By the eonsent of Wills, however, they finished their scheduled four rounds and Wills took the deci sion. Eddie Spina, 125, Portland, knocked out Curley Ingle, 122, St, Helens, Ore., Jn tu first round ot tne seneauiea xour-rouna, opener. LOS ANGELES, Maxell 21 (AP) "Freddie Miller made his third successful defense of his N. B. A world's featherweight title tonight with a one-elded victory ever Speedy Dado before less than 5,000 fans here tonight. 111 iolman Refusal to Stamp State Wair ante Situation; its at Board Power Cr iticism Hoover Cheered On Jaunt Home Looking completely rested and hannier than he has been for years, ex - President Herbert Hoover is shown on the rear platform of the train in which he left New York for his home in Palo Alto, Cal. Although he Is now m private citizen. Air. Hoover had to undergo the nan. al barrage of cameras and talk. le machines, but he seemed to enjoy the fan. AND PUNS TO REST Hopes to Remain There 20 Years, and That He'll Have Some Privacy PALO ALTO. Cal., March 21. (AP) Free of the responslbO lty, pomp, ceremony and secret service cordon that invariably go with the presidency, Herbert Hoo ver came back home today, re ceived the greetings , of friends and neighbors and announced he was going to take "a long, long rest." He was a different Herbert Hoover than the tired, responsibility-ridden president that Palo Alto saw last fall when he came here at the close of his campaign vote. He smiled, spoke a few words of appreciation for the quiet reception given him, an swered questions, posed for news photographers and shook hands with many well wishers. Arriving In Oakland by rail from Chicago, Mr. Hoover was met by friends and republican leaders and driven to Palo Alto, scene of the reception. There was a brief speech by Earl C. Thomas, mayor of Palo Alto, that ended with: "We are proud to have you back." "That's good of you," the for mer president replied. "It is ln- aa m. rreat measure to come iiAin. For 19 years I have been croinr away from California ram- (Turn to rage , wi. j New Trial Demanded: Motion for a new trial ot Charles Archerd, former ware house proprietor in Salem, found guilty ot conversion by a jury in circuit court here last month, was tiled-here Tuesday by C. F. Preuss of Grants Pass, attorney tor Archerd. Prness contends the tnsi juage failed to give proper instructions to the Jury when the latter re quested them and kept them out when they were aeaaiociea. also contends that the jury failed to take another ballot regarding Archerd's guilt or Innocence after the Jury had come .into the court for further Instructions. Prness holds the plUnUff did not bring proof to support its case which is held at variance from the original indictment which holds Archerd converted wheat entrusted to him and utilised the moneys received in his own business. . .. . With the motion are filed affi davits" signed by three jurors. George B. Davie, the first, de clares he was misinformed on the law, was never In accord with, the verdict ot guilty and "voted guilty in the Jury room last , to stir up new life in the discussion. -1 was :'v.:!.':f:"V HOOVER BACK HOME Answered No Explanations Due Meier, Departing Treasurer Says PORTLAND, Ore., March 21 (AP) Leaving behind instruc tions that the endorsement of the treasury department was to be tamped on none of the new state warrants. State Treasurer Rufus C. Holman departed tonight aboard the liner Admiral Peoples for San Diego on a five weeks' trip to Mexico City. Governor Julius L. Meier ex pressed surprise tonight at Hol man s action, observing tnat it was at the treasurer's request that the board ot control Monday au thorized issuance of the warrants. The governor said lawyers had failed to find any reason to ques tion the law's constitutionality. "His sudden and unexpected departure for Mexico, leaving be- (Turn to Page 2, Col. 3) SEWS JOB Thousand Camps, 200 or so Men in Each, to Afford Relief Employment WASHINGTON, March 21 (AP) Congress turned to work tonight on a broad employment and relief program submitted by President Roosevelt for the mar shaling ot Immediate Jobs for about 250,000 men In the na tion's forests. A bill authorizing the govern ment to enlist the idle in the cit ies and put them to work In more than a thousand camps of 200 or more men each was promptly In troduced in the senate as the fifth of the Roosevelt emergency rec ommendations was received on Capitol Hill. The busy president Informed congress he would submit later his ideas for "grants to states for relief work" and for a "broad public works labor creating pro gram." To get the funds for his pro (Turn to Page 2, Col. 2) 25 Organizations Agree Upon Fight Against Sale Tax PORTLAND. March 21. (AP) Representatives of 25 organisa tions met at the Labor temple here today and adopted a program to oppose enactment ot the sales tax, passed by the state legisla ture and referred to the people for a referendum vote. The meet ing was sponsored by the state sranse and the state Federation of Labor. The following officers were elected: Ben Osborne, chairman; Ray Gill, vice-president: Eugene Lar son, secretary; Ray Gill, Gust Anderson. J. A. Snider, Harry L. Gross and Eugene Larson, com mittee on organization. Another meetinz was scheduled for next Tuesday. for Archerd Jul of s Cited surprised when the vote was unsnlmous that Arcnera was guilty." H. R. Puts, juror, says ne was mistaken in his interpretstlon of the court's Instructions on the law. Edward 1. Charlesworth, Jur or, submmea an axnaavii noiaing that no poll of the Jury was taken after the Jurors had come into court to ask further Instructions. F. N. Derby, Dave Drager and Oscar Bower, have signed affida vits accompanying the motion In which each man swears he heard Davie ssy in open court, the Sun day morning that the jury unan imously reported Archerd guilty: "I do not think he took it (the allegedly stolen wheat.) " ' The trial was conducted before Judge Arlie Q. Walker ot Me Minnvllle. Judge L. H. MeMahan, before whom the indictments were return ed.disquall tied- him self. - "--a,' '(. -. - ' Counsel for the defendant says he was not informed that Judge Walker was to try. the case until the mornlnr the salt began. - i Archerd was sentenced to three Tears. In the state penitentiary. Ha. ia mow. free on bond -and It i living sear Grants Pass. -- r-" 0 I PAYROLLS HEED IIP E Treasurer Says he Alone One to Decide Despite Legislative Action Departs on Vacation Trip To Mexico, way Points; Meier is Surprised The soldiers had a song, whiclg paraphrased to apply to Oregon's finances,- runs thusly: Monday's warrant day. Tuesday's no-pay day. Wednesday's court day. Thursday! .... what? Be it known that yesterdajl State Treasurer Holman abruptly; announced tbat he would neith cash state warrants presented to) his office nor mark them not pakl for want of funds as the state) board of control had unanimously agreed to do Monday. The reason Mr. Holman stated was a personal determination that no board of control could eudgtl -him into stamping warrants not paid for want of funds under th provisions of H. B. 243 whieh is now law. Mr. Holman, for a number of days has claimed, despite the ati torney-general's advice to the con trary, that the treasurer and tha treasurer alone can decide when the state shall not cay Its war rants. Legislation placing sucTa power in the hands of the board is clearly unconstitutional, In the state treasurer's opinion. Late yesterday the state treas urer's office announced it would have a mandamus suit brought by an employe of the state labor commission to test the validity ot the new law. An attempt will be made to have the case advanssd by the state supreme court so an early determination may be had.' Meanwhile state warrants far , bills and payrolls are being Issued daily by the secretary of state office and are not being paid or endorsed not - paid - for- want-of-funds and thus made to bear in terest. Banks refuse to credit them to accounts and hundreds of 8tateho-ase employes are con cerned about the funds they need to live on. Climaxing Tuesday's events In state finances, Mr. Holman an nounced he was off on a vacation trip to Mexico City, which will take him four weeks. He and Mrs. Holman were to leave last night from Portland by boat to San Diego. Affairs of his office will be handled during his absence by Fred Paulus, deputy slate treasur er. Hal E. Hoss, secretary of state., said yesterday that he was aston ished at the treasurer's action. Hoss said he had no idea Holman would refuse to stamp the war rants after he had voted tor the action at Monday's meeting of the board of control. Governor Meier, from his Port land office, also expressed sur prise snd resentment that the state treasurer had refused to pro ceed with a step which had been decided unanimously by the board as a necessary one to take to per mit the state to function in an orderly fashion. Hoss pointed out that his office had to issue warrants as claims were duly presented and audited. He said many payroll warrants given out Msrch 1 had not been cashed and that scores of inquiries were com i nsr te his office askinsr when and if the state was golnt (Turn to Page 2, Col. 1) The Day in Washington By the Associated Press lreslden Kooeeveit asked congress for conservation corps to give 250,000 unem ployed work in national forests, and a bill for. It was Introduced la senate. House approved conference re port on bill legalising S.l per cent beer and wines -previously agreed to by senate. - House ' debated admlnJstva tkm farm relief bill with pa sag assured despite atiecmeat. to delay vote day Secretary Frances Perkins an nounced a reorganisation et la bor department. " State departuseat asked Ber- 'r tin embassy for report after re. . eetviaar eoaapuunts of meat ot Jews by Hitlerite. ALONG 11 GEN RftLDEBT 1 . ,
