r BE THRIFTY
Save niany times the price
f your Statesman subscrip
tion by using Statesman ad
vertisements as your baying
guide.
. WEATHER
Unsettled with occasional
rain today and Thursday;
Max. . Temp, Tuesday OS,
Mln. 44, river P-S feet, rain
.62 Inch, south wind.
POUNDED I&51
EIGHTY-THIRD YEAR
Salem, Oregon, Wednesday Morning; March 29, 1933
No. 2
e.
Constitutionality of new law
Upheld; Stamping Will
Now Proceed
But Banks Unable to Take
All of State's Paper;
Solution Sought
The state supreme eourt yester
day granted the petition of C. D.
Thomas, state employe, for a writ
of mandamus against State Treas
urer Holman .compelling the latter
either to cash Thomas' warrant or
to mark it non-pald-for-want-ot-funds
and thus Interest bearing at
5 per cent annually.
In his memorandum decision
the court held the state treasurer's
duties were solely those prescribed
by 'the legislature and. declared
that Holman 's contention of un
constitutionality in the legislative
act of 1933 requiring him to stamp
warrants was without merit.
Fred-Paulus, deputy state treas
urer, immediately announced he
would proceed no farther with the
case, accepting the court's over
ruling of his demurrer as final,
and would proceed to mark war
rants unpaid for want of funds as
soon as the formal mandamus writ
was received from the court.
Warrant Problem
Is SOII Unsolved
The decision ending oue phase
of upset state finances which have
continued since State Treasurer
Holman announced his refusal to
stamp warrants last Tuesday, did
not end the concern of state em
ployes about a market for their
warrants.
Banks here and In Portland
stated yesterday they would be
unable to take all the state's un
paid warrants at par and thus
itate workers paid from the gen
eral fund were yesterday canvass
ing the field for buyers of the
state's obligations, without dis
count, so that ordinary expenses
of each worker could be met.
It was understood that hope has
not been given up by state offi
cials that a group of banks would
yet arrange for a geaarjtl-Jnid
loan which will prevent the fur
ther issuance of warrants which
cannot be promptly paid.
Several banks announced they
would loan between 5 per cent
and 80 per cent of the face of the
warrants. To take the warrant at
full face value would necessitate
a discount, bankers said.
Warrants of the state highway
department and of other self-sustaining
departments are not af
fected by the state's present finan
cial difficulties since these war
rants are payable In cash by the
treasurer who holds special funds
for their payment. Only the gen
eral fund at present Is depleted.
Over Half Million
In 'Warrants Out
Approximately $600,000 in un
paid general fund warrants, In
cluding a carry-over of $70,000
from the month of February, are
now outstanding, according to the
secretary of state's office.
In the court's opinion, written
by Chief Justice Rand and con
curred In by all the justices, the
(Turn to page 2, Col. 1)
PORTKTOl
TO CUT EXPENSES
ASTORIA, Ore., March a 8.
(AP) The Port of Astoria com
mission by a vote of three to two
decided today to relinquish the
services of a traffic manager In
the Interests of economy and to
place the entire handling of the
Port of Astoria business in the
hands of Port Superintendent R.
R. Bartlett. Telephone facilities
were cut down, and Port employes
were forbidden to do private work
for any steamship concern.
Walter Nelson, who has served
as traffic manager, will leave his
post April 1.
The commission also voted to
cut the rate for loading lumber
from barges alongside a ship from
IS cents to 12 cent a thousand.
Toon
Begin
IFAMTIHI
The New Serial
Beatrice
Burton
T OD AY I
Plane Crashes House,
5'
Scenes at Ha j ward, Califs after m
two passengers, six ncmuen 01 we lanuiy ana i our otaer persons, a cloadbarst caased the pilot
to attempt an emergency landing, and when he tried to rise again after finding the field he had cho
sen was too roogh, he crashed into the house. T he resulting explosion set fire to the house the plane
had wrecked, and two neighboring dwellings. TJpper picture shows the plane and houses burning;
lower picture, all that was left of the homea after the fire.
INLAW
QUERY i SU
North Powder man Killed
With Hatchet; Spouse
Shows no Remorse
BAKER. Ore.. March 28 (AP)
Mrs. Rose May, 39, held in the
county jail here for questioning
about the slaying of her husband,
Warren W. May; 42, sometime last
night, laughed today as she par
ried questions by which police at
tempted to connect her with the
crime.
May, a North Powder, Ore.,
rancher, was beaten to death by
blows from a hatchet. Mrs. May
declared ahe found her husband's
body on the doorstep of their
home shortly after midnight. Po
lice said they found a blood-soak
ed pillow covered by a fresh, un-
soiled slip on the bed. Two pillow
slips, they said, had been washed
this morning.
When County Physician V. 8.
Ison asked Mrs. May: "Thy did
you hit the man you profess to
love?"
The woman countered:
Tou seem to know more about
this than I do."
Dr. Ison said that she showed
no remorse and that she would
be given a mental examination. .
Their two children, Lloya, 7,
and Juanita, , who were being
cared tor here tonight, said they
did not awaken during the night.
Police said they found, behind
a cubboard In the May home, a
hatchet bearing bloodstains.
ATTACK JURY STATUS
DECATUR. Alabama. March 28
(AP) A new attack en Ala
hama' liirv svatem was in the
offing tonight as defense counsel
gathered evidence on wnicn to
base their contention that nu ne
tTA warn fnnlnded in the lurv
box from which the venire for the
trial of Haywood Patterson, 19
year old Chattanooga negro, was
drawn.
Boycott Against Jews in
Germany to Start April 1
(By The Associated Frees) .
Plans for a nation-wide boycott
against Jews to be inaugurated
April 1 were issued from Chan
cellor Hitler's Natl headquarters
In Munich last night.
It the 'German government does
not Intervene, the proposed em
bargoes .will affect all Jews tn
Germany children, businessmen,
professional men and women and
other.
- A long . manifesto announcing
the move jaid that the Innocent
must not suffer but the guilty
must not be spared and that It
was' formulated "for the defense
of the Nasi party against the
atrocity propaganda abroad.
, One Berlin newspaper said the
boveott "would mean the econom-
fb ruin of hundreds f thousands
Varney passenger plane had crashed
Child Aged Six
Is Murdered in
Brutal Fashion
NEW YORK. March 28 (AP)
Criminally assaulted and stran
gled to death with her own skip
ping rope, the body of six year
old Barbara , Witesv was found
crumpled beside her doll buggy
today.
Police, spurred by the recollec
tion of three similar child slay
ings In the same borough within
the last two years, tonight were
rounding up 200 suspects for
questioning.
One youth was taken into cus
tody on the spot but later releas
ed. Newell Opposes
High City Fees
For Beer Sale
BEND, Ore., March 28 (AP)
W. K. Newell, deputy prohibi
tion administrator for Oregon,
indicated here today that be is
not entirely in agreement with
cities which plan to Impose high
license fees on places distributing
beer and light wines after' they
become legal April 7.
Newell expressed the fear that
high fees in the cities will result
in many "beer gardens" just out
side the city limits where they
will be beyond close supervision.
Because the Oregon legislature
refused to adopt a bill to regul
ate the sale of beer, the only
regulatory measures in this state
will be local.
Emergency Rate
Extension Fought
PORTLAND, Ore., March 28
(AP) Cement manufacturers of
Oregon .today opposed a petition
of the railroads serving this state
for an extension of emergency sur
charges from March 30 to Septem
ber 30.
Their opposition was expressed
at a hearing held here by A. F.
Harvey, examiner for Charles M.
Thomas, state publie utilities com
missioner. of German Jews," and another pa
per advised the Naxla to be cau
tious In view of the Germans liv
ing beyond the borders of the
Reich.
The manifesto held German
Jews responsible for the "libels'
outside Germany.
Of the 1,350 steel helmet war
veterans and others arrested in
Brunswick Monday allegedly be
cause of plots for a counter-revolution
against the national socialists,-
1,200 were released last
night. - r''.-.-;--''v-,-v
In Vienna B0 persona were ar
rested when Austrian Nails, defy
ing a governmental decree, staged
a : demonstration during which
cheers ; for. Hitler were heard.
Naxla broke windows In Vienna
coffeehouses, stores and street
1 cart, , - . . .'- C:
13 Killed
mimamwm
Into a house, killing the pilot.
r
1HEFIS
ive Plead Guilty to Roles
In Disappearance of
Jackson Ballots
MEDFORD, March 28. (AP)
Five reputed members of the
so-called "Good Government con
gress" of Jackson county today
pleaded guilty to charges of burg
lary in connection with the theft
of about 10,000 ballots from the
county courthouse here February
20, on the eve of a recount to
determine the legality of Sheriff
Gordon Schermerhorn's election
The five were Wesley McKlt
rick, R. C. Cummings, Wilber
Sexton, Mason Sexton and C. J
Connor. The cases were continued
for sentence.
Llewellyn A. Banks, former
Medford editor and organizer of
the "congress," and his wife.
Edith R. Banks, were arraigned
on firs: degree murder charges
for the slaying of Constable
(Turn to page 2, Col. 1)
NBW YORK, March 28 (AP)
A belief that "time will vindi
cate" Japan's actions was voiced
by Tosuke Matsuoka, who was in
the International spotlight as
head of Japan's delegation to the
league of nations.
"Japan has been waging a war
against a world that has misund
erstood her and she has suffered
a defeat," the American-educated
diplomat said, in addressing the
Japanese chamber of .commerce.
"But I believe that time will
vindicate her actions. . I am con
fident that, at a not far distant
date, the rest of the world ''will
say that we have nol been wrong
or selfish In our motives.
He made no direct reference
to Japan's withdrawal from the
league.
Much of his address was a crisp
criticism of China for . what he
termed her lack of integrity and
responsibility.
Long Beach Oil
Plant Damaged
By Fire. Blast
LONG BEACH, Cel., March 28
(AP) Twelve men narrowly es
caped death er Injury ftnd 125,
00 damage was dose when an
explosion and tire wrecked the
compressor and storage plant of
the Standard Gasoline corpora
tion here today. . -- .
: Officials said the blast -probably
was caused by the dropping
ot a compressor bottom.
- The fire for ft time threatened
adjoining storage tanks and ell
wells, but it was soon brought
under control and extinguished.
The explosion waa heard over
warn
m
DMT
TIME TO VINDICATE
JAPAN
EM
, a wide area. -. ,
PAY1S GUT IS
' FEDERAL JOBS
Roosevelt Order Effective
April 1 Estimated to
Save 30 Millions
Based on Asserted 21.7 per
Cent Reduction Found
In Cost of Living
WASHINGTON, March II
(AP) A flat II per cent cut tn
the salaries' of government offi
cers and employes the maximum
permitted under the recent econ
omy bill was ordered today by
President Roosevelt to begin Sat
urday.
It is to continue until June SO,
the end ol the present fiscal year.
What action will be taken then
will depend on whatever change
has taken place in the cost of liv
ing.
In ordering the new salary
slash, the president automatically
did away with the present 8 1-3
per cent cut brought about by
the furlough system put In force
by the Hoover administration.
The present reduction is from
the basis before the previous cut.
The pay cut to aid the gov
ernment in balancing the bud
get was estimated to save 230,
000, 0CO 'he remainder of this
fiscal year, or at an annual rate
of $120,000,000.
Living Costs Drop
21.7 Per Cent, Claim
In his executive order, Mr. Roo
sevelt said he had determined the
cost of living had dropped 21.7
per cent since the first half of
1928.
Under the economy measure.
passed at his request, the chief
executive is empowered to reduce
salaries In proportion to the drop
in cost of l'ving since the first
six months of 1928 taken as the
base period. It is specified, how
ever, the slash must not exceed
15 per cent.
The cost-of-living index figure
for the six months ending June
80, 1928, was determined by the
abor department to be 171, while
the figure for the half year ter
minattnr December SI, 19S2, was
133.9. The yer- 1918 was taken
as 100.
In deciding what action to take
after next June 30, it will be
necessary under the law to ascer
tain the cos of living for the
nrst six months of 1933. Presi
dent Roosevelt can continue the
15 per cent cut at that time if
living costs Justify.
T FED
TO
FHir
CHICAGO, March 28 (AP)-
A father admitted sorrowfully to
day nis zeal to provide food was
responsible for the death of two
children and illness to the rest of
the family.
John Trapsello, a municipal
laoorer, told coroner s investiga
tors the fatal malady was caus
ed by tainted meat.
For weeks, he said, there had
been no meat on the table. He
had been unable to collect his pay.
On bis way home Friday, Trap
sello found a quantity of pork
back of a restaurant Without the
knowledge of bis family, Trapsel
lo prepared a portion ot the meat
into sausage.
The next day, he said, James S.
died. Anthony 1, died today. Fran
ces 12, and Dorothy S, daughters.
are in a hospital, seriously ill, and
his wife and other three children
are under a doctor's care at home.
DEPOSITS RELEASED
Segregated trust deposits made
in the First National bank here
since the banking holidays, are
now releasahle without restric
tion, Keith Powell, conservator.
announced Tuesday after receipt
of authority for this step from
Washington. D. C. The deposits
were restricted on Monday only
pending word from federal au
thorltles.
PoweU said the present staff of
the bank would be continued
through this month, after which
time be would select the personnel
ander which the institution will
be conducted.
Payment of obligations to the
bank Is to be continued, roweu
said, while reorganisation plana
are being discussed. New deposits
which will be treated as trust
funds ma also be received.
TO PROBK BOMBING
4
PEIPING, Cblaa, Mareh it
(AP) The Japanese Charge t'
affalres here promised today to
make Inquiries of the Japanese
military command concerning the
bombing of TaJ to wring liaren 24
in which one bomb landed near
the residence of an American mis
HINTED
ME
mm
I' SEGREGATED
sionary.
Regulation of Beer
Su bject of Co unci I
Conclave Thursday
Ten Aldermen and Mayor Sign Call; License
Amounts Moot Point With Wide
Range of Opinion Apparent
rE city council will meet in special session at 7:30
o'clock tomorrow night to consider bills permitting and
regulating the sale of 3.2 beer in Salem. The call for the
session last night bore signatures of 10 aldermen, two more
than necessary, and that of Mayor Douglas McKay.
Aldermen active, in studying the beer question here pre
dicted that the session would-see O : : ;
a bill put through first, and second
readings and sent to committee In
short order. The measure then
would, come for final action at the
regular session Monday night.
Today and tomorrow members
of the police and license commit
tee, and other aldermen interest
ed, esrlll make a thorough study of
comprehensive ordinance City
Attorney Chris J. Kowitz has
drawn up. The bill is written to
Include the requisite regulations
on all conceivable angles to the
beer question.
Sentiment on the council var
ies as to the size of license fees
which would be charged. Some
speak in terms of soft drink li
censes, which now are II annual
ly; others would see beer vend
ors payfne cuy one, two or more
hundred dollars. The city attor
ney tentatively is expected to set
the licenses for selling beer in
hotels and restaurants at $100,
sale in original package in gro
cery and drug stores, 850, and
sale on draught in other places
$200.
Whether or not a way will be
(Turn to page 2, Col. 1)
T
Prospect of Work in Near
Future to be Studied
By new Committee
Development plans for a muni
cipal water system will be thor
oughly studied by a special super-
committee of the Salem Trades
and Labor council appointed by
Frank Crosier, president, at the
regular meeting Tuesday night.
The committee was instructed
by the council to acquaint itself
with details of the proposed Sa
lem water project, with the idea
of finding out how soon work
will be available for unemployed
citizens of Salem.
T. C. Amend, executive secre
tary of the council, was named by
President Crosier to head the wa
ter committee, which Is composed
of all the members of the three
general committees of the coun
cil, namely the arbitration, leg
islative and organization commit
tees. Amend announced that the
super-committee would meet at
Union hall at 2 o'clock Saturday
afternoon to go into the question
thoroughly with city officials who
are conversant with the matter.
The council also instructed
Amend to telegraph President
(Turn to page 2, Col. 3)
Dr. Sternberg
Injured When
Struck by Car
Dr. G. A. Sternberg. Oregon
building, suffered a bruised knee
and cut on one hand last night
when he was sideswiped by an au
tomobile driven by Richard B.
Pierce, 1110 Fir street, at Liberty
and Ferry streets. Toung Pierce
told police he had been forced to
swerve to avoid being struck by
another car and did not see Dr.
Sternberg, who was crossing the
street.
The only other automobile acci
dent reported yesterday was be
tween cars driven by R. C. Dam
rell, route two, and J. F. Jung
wlrth. route three, at 12th and
Chemeketa streets.
u w m
mm t
in
Federal Blue Sky Law
Next in F. R. Program
WASHINGTON, March 28.
(AP) President Roosevelt will
ask congress tomorrow to throw
the cloak of federal regulation
over new securities . Issues In the
form ot general "blue sky" law.
A bill giving the federal trade
commission extensive authority to
enforce complete publicity of se
curity transactions and to aid In
the prevention of unnecessary and
fraudulent Issues will accompany
a message from the president.
This is the first item in Mr.
Roosevelt's program to protect the
investing public A second is la
preparation- the regulation of the
stock exchanges aad it wgl be
advanced to congress shortly.
Tbe security legislation ia the
result of weeks of work , and Is
baaed on the. plana outlined by
the president in his campaign.
Secretary Roper, who has been
working with experts, laid the
draft of the bill before Mr. Rooee
velt.today. Just before a cabinet
meeting that lasted two hours and
a half.
FORESTATION DILL
PISSED DY SE1TE
500 Millions for Direct
Grants to States is
Next on Program
WASHINGTON, March 28
(AP) President Roosevelt's bill
to put men. to work In the forests
swept through the senate today
without even the formality of a
record vote and was sent to the
house where leaders forecast its
approval tomorrow.
The senate then prepared to
take up tomorrow, if the chief
executive desires, the second part
of his broad unemployment relief
program a bill to create a $500,-
000,000 fund for direct grants to
the states.
This broader plan for aid to tae
destitute swiftly was approved by
the senate banking .ommittee
earlier without a dissenting vote.
The necessity for its quick a;.-
proval was somewhat lessened.
however, when the senate adopt
ed an amendment to the reforesta
tion measure removing restric
tions on relief funds already au
thorized.
Passage of the Roosevelt re
forestation measure marked the
fourth of the, president's emer
gency measures to get through the
senate this session. The others
were the banking, economy and
beer bills.
It ia only the first ot a series
ot steps planned by the chief exe
cutive, however, to relieve fie na
tion's millions of Jobless.
In addition to the creation of
the $500,000,000 relief fund the
president plans also a huge pub
lic works program running to
about 81,000,000 and probably
liberalization of the law under
which the reconstruction corpor
ation makes loans for public con
strutlon by states and subdivl
sions.
OFFICER EVIDENTLY
IS DEEMED GUILTY
LONDON, March 28. (AP)
Trial of one ot the strangest
cases in the annals of the British
armed services concluded today
In a finding of not guilty on three
of the 10 charges brought against
Norman Baillle-Stewart, lleuten
ant of the Seaforth Highlanders,
accuser of selling military secrets
to a foreign agent.
No announcement was made of
the decision ot the court martial
concerning the remaining charges,
but military custom made it clear
that the finding would be other
than not guilty. Otherwise they
would hare been made public
The case now goes to higher
military authorities. If the de
cisions of the eourt martial are
confirmed by th army council
and approved by the king, the
war office will announce the pen
alty to be Imposed. This may take
several days, perhaps even weeks.
In the meantime the young
Scottish officer will remain under
guard in the Tower of London
as he did during the C7 days he
awaited his court martial.
Tbe "truth telling" bill requires
definite statements to be made to
buyers in respect to the bonuses
and commissions the sellers are
to receive; information as to the
investment of principal, the true
earnings, true liabilities and true
assets of the corporation.
It also Is understood the legis
lation will encompass sales ot for
eign securities in this country, as
proposed by Senator Johnson (R
CaL), who Investigated the losses
In these bonds a year ago.
Huston Thompson; chairman ot
the federal trade-commission un
der President Wilson, haa coop
erated with Secretary Roper and
Charles W. Taussig, one et the
president's eonnomlc advisors, la
the draft of the sweeping proposal
to protect American security in
vestors.. It la expected the legislation
will be sent to congressional Jad
leiary committees, and party lead
ers are prepared to push it.
530,
ATTEMPTED If!
L COSTS
Teacher Salaries Point of
Attack, Agreement at
Board's Session
5 and 10 per Cent Cuts to
Be Favored; may Lower
Number Employed
Explaining It their intent ta
preserve the3 public faith in obli
gations of Salem school district,
the directors' at' last night's meet
lng informed!;- a selected committer
of five citizens that a SSO.OOe re
duction In the cominsr v ear's bud
get appeared advisable, and ask-
ea suggestions as to where to
make tf.e slash.
Round table discussion result
ed in a straw vote favoring a 19
per cent reduction in teacher-
principal salaries over siooo an
nually, a five ner cent ent in sal
aries below that amount, elimin
ation at least ot the $2000 posi
tion of elementary supervisor and
possible dispensing with the ser
vices of several teachers through
consolidation of classes. On this
scale, the saving from salary
slashes would total approximate
ly 823,300. :
Dr. B. F, Pound, member of
the finance: committee, staled
that certain dunlications of effort
might be cut out and said super
visors and principals could be put
in cnarge or classes as an econe-
my more.
Proposes Athletic
Coach be Dropped
With Salem high school's bas
ketball championship season
scarcely a week past, Dr. Pound
suggested cutting out "the frfll
of an athletic coach drawing a.
21S25 salary working half time.
He said that the coaching couM
be handled by the four men phy
sical education Instructors em
ployed in the system.
The situation facing the school
board, it was pointer out. Is that
of rising tax delinquencies, awr
amounting to 30 per cent Oa
March 23, $137,189.62 In baest
taxes was due the district, eC
which 80,?U. was of the 1931
levy. To meet bills and salarie
as due, the district now has out
standing approximately $193.0tft
in interest-bearing warrants and
$10,000 In notes.
"While other districts aave
found their warrants rejected, oar
paper always has been good." ex
plained Dr. H. H. Olinger. chair
man of the board. "We want feav
keep It that way and feel thafc
a substantial reduction in our
new budget : will show the tax
payers our good Intentions."
Citizens Invited to advise with
the board were W. L. Phillips,
E. B. Millard. John Hunt, O. F.
Chambers and Don TJpJohn.
Mr. Chambers urged elimina
tion of supervisory expense, sec
onded by Mr. Hunt who also ad
vocated salary salary cuts from
10 to 1$ per cent.
"I don't think we will get
prosperity back by cutting sal
aries," declared Mr. Phillips. He
also protested cutting out the ex
pense for an athletic coach at
the high school. "If we are go
ing to do away with the athletic
coach, let's do away with these
sports entirely," he suggested.
Mr. Upjohn urged cutting "as
deep as possible In tbe cold,
mechanical department of the
schools" and making the least
possible reduction In salaries.
"Cut anything rather than have
warrants discounted," advised Mr.
Millard. He L decried salary cute
If the; could be avoided.
Agrees Redaction
Som-where Needed
The directors were unanimous
In declaring a substantial budget
reduction necessary. At the closw
of the meeting they . instructed
Superintendent George Hug to
prepare figures on possible sav
ings from every possible source,
to present at the next meeting.
Superintendent Hug informed
the board that although his con
tract ran for another year, he
would take the, time salary re
duction as the teachers.
The Day in
Washington
(By the Associated Press)
President Roosevelt consid
ered a proposal for sending to
eongreae today seeking regnla
tioa of sale; of new securities
with reeomendatiofts for con
trol ef stock exchanges to be
. submitted later.
Senate passed President Roose
velt's reforestation unemployment
relief bill.
OH representatives proposed ;
te Secretary Ickes, government
regnlatioa ef the indastry. .
' I - ' - . :
President Roosevelt ordered 15
per cent cut in salaries: et. fed
eral employes
Secretary Woodia announced
permission for partial reopen
lag off banks where eewsenra
torn believe 'f ft can be done
safely.
y.
it