The Oregon statesman. (Salem, Or.) 1916-1980, May 09, 1933, Page 1, Image 1

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Cloudy, probably rai to
day aad Wedaeaday; Max.
Terap. Monday 51, Mia. 42. .
river 8.0 fret, rain JS1 tech,:
southerly winds.
Salem, Oregon, Tuesday Horning, May 9, 1933
No. 57
I -
French Refusal to pay on
Present Status Backed
By British Stand
Senate Passes Securities
Regulation, .Farm Bill
Delayed in House
.-?Tho senate advanced the Roo
sevelt legislative program another
notch today, while the house
stood still with parliamentary ob
jections blocking action on the
administration farm relief - in
flation hill.
The Roosevelt bill to protect
Investors In new issues of secur
ities by compelling publication of
all pertinent Information as to
their soundness was passed by the
. senate. Already approved by the
house, it now goes- to conference.
Democratic house leaders were
balked In their plan for a vote on
the farm-bill provision for a gov-
ernmental guarantee of the cost
of production to the farmer. This
' is the last dispute standing In the
way of final passage.
Point Upheld but
Vote Is Imminent
A republican point of order was
raised that the conference report
contains language approved by
neither house, in violation of par
liamentary rules. This was upheld
by the ohalr, but shortly after
ward, the rules committee ap
proved a plan of action which Is
expected to bring a vote tomorrow
n d e r procedure prohibiting
points of order. The first vote
will be on house approval of this
The production cost guarantee
was written into the bill by the
senate. Administration leaders
were confident if the house re
jects the provision, the senate
will precede from Its position
.making it possible to send the
farm bill, with It inflation rider,
to the White House in a few days
French and British
Stubborn en Debts
While congress wrestled with
these domestic issues, apprehen
sion grew lest a dispute over war
debts might endanger the success
of the coming world economic
conference. The French cabinet
decided unanimously against pay
ing the defaulted December in
stallment of 119,000,000 unless
the United States promises post
ponement of the payment due in
June. Simultaneously, word was
received from London the Brit
ish are holding out for a post
ponement of their June Install
ment as a condition of Joining the
tariff truce proposed by President
The developments brought the
chief executive, still smiling and
confident, face to face with a
grave decision whether be should
ask congress for authority to deal
with war debts, as was his indi
cated intention a wefek ago.
Iowa Quiets Down Under Martial
Law, Which is to be Lifted Soon
V " 1
V V "" - j
4 ...... V
md ' is- U- I i pry v- '
tf , ,0 Nil' s . - " "' Vv'"i s
Kenneth Buck Says Others
Involved, but Changes
His Story Later
Hints Wife In Danger If He
Tells, but Police say
He Worked Alone
Latest word from troubled Plymouth county, Iowa, la to the effect
that the situation has quieted to such an extent that the national
guardsmen, some of "whom are shown above behind their machine
guns, may be moved oat mwxt weekend, with martial law ending
officially Saturday. In lower photo Is shown the arrest of two
men In connection with the attack on Judge C. C. Bradley; Jack
Sokolovskl, climbing the steps, a farm hand, and Henry Heinta, a
farmer, shown as they entered the armory at Lie Hars under guard,
MM 1
Gaston Means on Trial for
Second Fraud Involving
. Gaston B. Means was on trial
today, and on the witness stand
across the room sat Mrs. Bvalyn
Walsh McLean, clutching a little
black handbag containing a rope
of diamonds two feet long and
Jewelled bracelets worth a king's
As the bulky, round-faced con
victed swindler shifted In his seat,
the distinguished woman, once
fabulously wealthy and brilliant
In society, composedly told with
new details the story of how
Means and Norman T. Whitaker,
known as "The Fox," got from
hr 1104.000 in return for a
promise to return the Lindbergh
baby. ,
She testified they then sought
S35.000 more with which to re
place the marked money which
Col. Charles A. Lindbergh nad
paid out through "Jafsie" In the
attempt to get back nis cnua
whose body even then was lying
on a lonely hillside almost within
steht of his New Jersey home.
The Jewels in Mrs. McLean's
(Turn to page 2, col. I)
TO GET FUST ClPfe Barrel
nous upnm
By Cemetery
PORTLAND, Ore., May 8
(AP) When 100 young men
marched from the United States
armv recruitinz office here today
and entrained for Fort Lewis,
Wash., it marked the completion
of the first quota of 900 forest
recruits for the civilian conserva
tlon corps from this area.
The last group of men were
Arlrtnallv scheduled to leave Sat
urdar. but delay in the receipt of
transportation from Washington,
D. C, caused the two-oay post
' tonement.
Preparations are under way, it
was said here today, for the op
ening of the first forest camps in
the north Pacific district on May
15. A total of 2000 men between
. the ages of 18 and 25 are now en
rolled In the conservation corps
in Oregon and Washington, and
the first units will begin moving
Into the woods next Monday. The
first camp In Oregon will be at
Applegate In the Rogue River na
tional forest.
Part of her Remarks are
However Ruled out as
Defense Objects
Shivers of Hallowe'en! What
other than ghosts could cause a
barrel to roll uphill along the
border of a cemetery, Carl Charl
ton, night trafJic officer, must
have wondered in the wee hours
of Monday morning. Upon return
ing to police headquarters from
an investigation trip to City View
cemetery, he reported seeing
Just thai a barrel rolling up
the Hoyt street nui.
The blasts of the night's gaie
which played eerie tunes on the
cemetery trees gave the officer
the clue to the weird phenomenon
he witnessed.
The windstorm early yesterday
at times reached a velocity of 82
miles an hour, airport weather
observers reported.
EUGENE, Ore., May 8 (AP)
The remarks of a ten-year-old
girl, the daughter of the defend
ants, were ordered stricken from
the records in circuit court here
today after having been entered
by a prosecution witness against
Mr. and Mrs. Llewellyn A. Banks,
on trial for first degree murder
for the slaying of George Prescott,
Medford constable.
Miss Charlotte de Ford, rela
tive of a state policeman, who was
sent to the Banks home lmmedi
ately after Prescott had been shot
to death there, testified that Mrs
Banks told the child "Daddy ahot
Mr. Prescott." "Oh, mother, Is he
dead?" the witness quoted the
girl, and the mother's reply "I
don't know, he's lying out there
on the porch."
Only after the witness had
quoted the child, Ruth May
Banks, as having said "Ob, moth
er, I knew he would do it," did
the defense interpose an objection
to such testimony. The court sus
tained the objection and the Jury
of six men and six women were
Instructed to take no note of the
Earlier in the day Al Lumsden,
detective sergeant of state police,
had testified that when the child
returned from school Mrs. Banks
had told her "daddy has killed
Mr. Prescott. He s lying out on
the porch." This testimony passed
t ( AP ) Kenneth and Cyril
Buck, Harwiehport brothers.
pleaded not guilty today In the
kidnaping of 10 year old "Peggy'
McMath and were held on $100.
000 bail each for hearing May 22
The district eourt on the first
floor of the quaint old town hall
was crowded with Cape Codders
as the brothers, arrested Saturday
after the child had been aafely
returned to her Barents and the
160.000 ransom had been recov
ered In Kenneth s home, appeared
before Judge Robert A. Welsh, 82,
Massachusetts' young Jurist.
Kenneth, 28, unemployed chauf
feur, ereated a furore shortly be
fore his appearance In court by
telling reporters there was "an
other party" Involved In the kid
naping, but that he was withhold
ing his Identity because he was
afraid of what might happen to
his wife.
Sa: s Wife in Peril ,
If He Tells Truth
The young confessed kidnaper
later retracted his statement and
detectives reiterated their belief
no one else was Involved.
While awaiting arraignment
Kenneth was asked: "Is it true
that there Is some one else In this
"Yes, there is," he replied, and
began to sob.
I am between tnem and my
wife," he said, "and I don't know
what to do. I know I didn't do it
and she knows I didn't do It. I
am between them and my wife
and I can't say anything."
Asked If the "somebody else '
had left him to take the blame he
'Yes, they ran away and left
He answered "No, ' when asked.
If the person or persons lived In
At first Kenneth said two oth
er men were Involved but later
changed It to one.
"They dumped the kid on my
hands, he sobbed."
Kenneth was arraigned on a
charge of kidnaping and extortion
while his brother, IS years his
senior, was charged with extor
tion alone.
A special session of the grand
Jury will convene next week and
if indictments are returned on the
basis of what police claim are
confessions by both men the us
ual preliminary hearing will be
They Figure in
Kidnaping Case
. V ;.
$250,000 cf Capone Money
Thrown Into Industry
In Detroit, Word
- A V f
Education Budget is
A d opted Essential! jr
As Outlined by Ken
Truckloads of Brew Taken
Into . State Awaiting
Legalization Soon
Above, Neal C. McMath of Har
wiehport, Mass., whoee 10-year
old daughter, Margaret, was
kidnaped but was returned on
payment of gOO.OOO ransom.
Below, Brigadier General Dan
iel Needham, head of the Mass.
achufietta state police, who di-
rected the strategy which re
sulted in the arrest of two as
serted kidnapers and the recov
ery of the money.
Credit Expansion Likely to
Be Only Step Taken if
It is Effective
DETROIT. May 8. (AP)
Beer, In truckload lots, moved In
to Michigan tonight, to be held
for consumption when It becomes
legal at p. m., Thursday, while
officials Investigated reports
gangsters financed by Chicago's
Capone gang" were attempt
ing to gain control of Detroit's
brewing and S.2 beer distribution
Assertion Capone money
1250.000 of It had been used
to finance a Detroit gang syndi
cate now in control of five or six
breweries in the Detroit area
came from the Detroit News. The
paper said five breweries already
are owned by gangsters, some of
them even now under indictment
It declared respectable hemes are
listed in the brewery directorates
as "fronts."
The syndicate needed money,
the News said, and 1250.000 came
from the Capone "mob" in ex
change for stock in the breweries
Speculating on the reported de
velopment, the News said Indica
tions were the Capone gang now
has ambitions to resolve itself in
to a gigantic "national beer
trust" by extending financial aid
to similar gangs In smaller cities,
receiving stock in return.
Frank A. Picard, chairman of
the newly-formed Michigan liqu
or control commission, which su
pervises the licensing of brewer
ies, said a defensive alliance be
tween federal and state govern
ments to combat any gangster ac
tions has been made. No federal
license will be recommended for
any brewery which has not al
ready obtained a state license, he
said, and no state license will be
issued until federal authorities
assure the state they will grant
the brewery a. license to operate
The News said none of the fire
breweries already reported un
der gangster ownership, as well
as another reported under their
control, has yet been granted a
license to operate.
Rainbow Doesn't
Lie, Arc Ends
Atop Bank Here
Maybe there la some truth in
the old story about the pot of
gold at the end of the rainbow.
At 7 o'clock last night the sun
broke brough the clouds and rain
for a fleeting moment, forming
a large rainbow, the giant are of
which appeared to tne observers
at The Statesman office, to term
inate at the top of the First Na
tional Bank building.
Slashing Done Mainly
In Administration
And Extension ;
Further cut is Made
To Offset Lower
Job Levens Held
Sought by Many
Many applications for the post
of deputy attorney general are
being made. It was . announced
yesterday at the statehouse, ap
plicants seeking to fill the Job
held by William S. Levens before
his death last week. The attorney-
general's office stated that no
appointment would be made for
some time with a possibility ex
isting that no successor would be
named, the work being taken over
ny present uepuues.
Commander of Oregon's
Wat Regiment Passes on
Tentative plans for an Oregon
products dinner and show here
May 24 were laid last night by the
Salem group, Women's Greater
Oregon association, which met at
the chamber of commerce. A com
mittee will be named to decide
definitely. If the dinner program
is held. It will be In the armory.
with places for 400 guests, and
will Include a style show and ex
hibits of Oregon foodstuffs and
The Salem group last night
voted to support the Willamette
university Philharmonic too
which will be heard in eoncert at
the armory May 22. and the
American Legion auxiliary's an
nual bridge tea for relief work to
be held at Fraternal temple May
15.- Much of the meeting was de
voted to discussion of promoting
Oregon products. Salem-made waf
fle and pancake flour, syrup and
smocks, and Portland-made wom
en's hats were exhibited.
Mrs. W. Carlton Smith, pres
ident of the Salem group, was re
elected second vice-president of
the state association, it was an
President Roosevelt awaited
only the congressional word "go
today to let loose with the first
anti-depression weapon provided
by the inflation bill a vast In
crease In credit to supply Indus
try with the funds It needs to ex
pand Its activities, hire more men
and raise wages.
But the signal was delayed by
parliamentary technicalities which
sent the bill back to conference
between senate and house. Credit
expansion is to be the Immediate
objective, with a drive for higher
commodity prices, for the elimin
ation of unfair trade practices
which the administration believes
Damper business, and lor a con
trolled production with Industry
and . government cooperating.
The first section of the infla
tion measure empowers the treas
ury to make agreements with the
federal reserve system under
which the latter would invest up
to three billion dollars In govern
ment securities, buying them in
(Turn to page 2, col. 2)
Full assistance In all major
projected public construction is
offered by Salem chapter, Ore
gon Building congress, as the re
sult of action taken by the board
of directors last night.
The builders, feeling It not
their place to sponsor such con
struction. Instead promised their
cooneration In any that may be
forthcoming, Buch as the munici
pal swimming pool planned by sa
lens Lions club, the municipal
dock and Willamette river canal
ization sponsored by the chamber
of commerce.
William P. Ellis, rate attorney
for the chamber of commerce.
who will present the plea for Wil
lamette river canalisation before
the board of engineers at Wash
ington. D. C next week, outlined
this and the dock projects to the
Federal Program of Public
Works may be Benefit
To Development
The state unemployment relief
committee is shortly to call upon
state, county and city officials to
outline possible projects for
building to which federal moneys
could be profitably and soundly
devoted, it was learned yesterday
at the capitol.
Construction by various gov
ernmental units may be encourag
ed under the billion-dollar pub
lic works bill being pushed
through congress, it has been
learned by the relief committee
hich is taking steps to survey
the various public construction
which might be available in Ore
It Is expected that a hurried
survey of needed state work will
be undertaken, probably under
supervision of the state board of
control. Needed Improvements
state officials said yesterday, in
clude a nurses' home at the state
tuberculosis hospital, a state lib
rary, a hospital annex for pris
oners at the state penitentiary
and a treatment building for
handling state hospital patients
In Portland.
The 1933 legislature authoriz
ed the state to borrow funds from
the federal government, anticipat
ing that funds might be mad
available for public works. The
loans, if and when made, would
have to be approved by the feder
al government subject to the con
stitutional limits on debt Incur-rsnce.
It was pointed out yesterday
at the capitol here that 11.900.-
000 of It. F. C "loans" for un
employment relief hare already
been received by Oregon with
little expectation that the federal
government will ever require
their repayment.
Road Work Will
Aid 1695 in May
Approximately 1695 men will
work on the Marion county relief
road work this month, according
to an estimate made at the U. 8.
Y. M. C. A. Employment bureau.
During the last month and a half.
around 200 men have been drop
ped from the relief lists because
they refused to work, caused trou
ble, or obtained groceries on
promise of going to work then
did not appear on the Job.
(AP) Colonel John L. May, 72,
who commanded Oregon's tegi-
The barometer at the airport ment, the 162nd inuairy,
weather station was rising slight-throughout the world war. died at
ly this . morning but gave scant j his home here today. He had been
promise of clearing weatner tnai m for two weeks, coionei saay
would release Salem irom us i was a member or tne uregon na-
stege of eight days rala.v The tlonal guard for it years.
forecast for today is tor - gener-1 The body win ue in siaie - at
ally cloudy weather with rains, the armory here Wednesday from
With the rainfall for May to-no a.m. to J p.m., wnen xne ior-
tallinr t.H inches when the offi-1 mer commander will be burled
eisl readinar was taken at ?:S0lwith military honors. Arrange-
m vActrffT- .nrosnects were intents ror tne iunerai.are wins
that by this morning It would ex-1 made by Lieutenant-Colonel -Fred
teed the mean average of 2.48 in-1 M. West," second la command ot
ches for the month. . Ithe lszna iniantry. - U 1
Th niniMt Uir on record was I . - Colonel May was oorn in unw
In 1895 when .2I Inches of pre- lyn N. May 17, I860. He went
rtnitaHnn waa recorded. Next was I to Los Angeles tn 1878 where he
ViT 1898 with 5.54 inches, in I entered ine service os am owuiu-
tfav 143 i oi inna or rain ieuiern rsciuc coiumuj. n "
here; In 1931 .78 inch and In j that "railroad until June 1, 1930,
ish-American war. the Mexican
border campaign and the world
war. He was trainmaster of the
Portland division of the Southern
Pacific when he retired In 1930.
The future colonel Joined the
Nevada national guard while liv
ing at Wlnnemucca and was
lieutenant when he was ' trans
ferred to Woodburn, Ore. He was
there 18 months, then went to
lilt IS Mil
Hope for a call of state war
rants some time this month was
expressed yesterday at the state-
house as additional funds were re
ceived from counties for the first
half et 1932 taxes. Clackamas
eountr waa the latest to rsmlt the
Asniana xor sue years, ue was cap- i tax due the state.
tain of B company. Snd Oregon
volunteers during Spanish-American
war and went to the Philip
pines with that outfit. He was
Funds now building up tn the
general fund "Win go to take up
warrants although no call win be
Issued until 8310.000 Is on hand.
lieutenant-colonel of the 3rd Ore-1 this sum representing the amount
gon on the Mexican border, and
was elected colonel soon after re
turning to Oregon.
Besides his widow, a daughter
and two sons, all of Portland,
Colonel May la survived by a sis
ter. Mrs. Eliza Hayes, and a bro
ther, Frank O. May, both of Guth
of warrants registered the first
day the treasurer announced war
rants would not be paid xor want
of funds.
' About 11,500.000 In general
fand warrants are now outstand
ing. First-halt taxes, due from the
counties by June 1 aggregate 1,
PORTLAND, Ore., May 8
(AP) The organization of 60
000 women as potential anglers
and hunters Into 300 women'
"sportsmen's clubs" was proposed
to the state game commission at
Its annual meeting here today by
Miss Nadlne Strayer of Baker,
Ore., former student at Willam
ette university. She expressed the
belief that such organization
would eventually result in an In
crease of $150,000 In fees from
fishing and hunting licenses.
"There are perhaps 2,000 wom
en in the state now who annually
buy fishing or hunting licenses,'
she told the commission.
"Thousands of skirted anglers
are evading the game laws every
year. They go fishing with their
husbands or other male relatives
and think nothing of having a li
cense. If these women were under
the scrutiny of organized sports
women's clubs they wouldn't dare
to break the law. ..".
"Women have more time to fish
and eaiOT outdoor life ihaa hare
men and all they need Is a little
official encouragement to flock to
the streams and lakes. Frankly
am applying for the job of creat
ing Interest in this project and
would consider, tf my proposal
meets with favor, that I could sell
a thousand additional fishing li
censes to women before the end
of the rear. In. three years this
number of fair, anglers would be
PORTLAND. Ore.. May 8
(AP) John Poole, 34. of Port
land, waa fatally Injured toaay
when a laeked-up truck on which
he was working fell on him. He
waa taken by ambulance to a
Portland hospital, but was pro
nounced dead on arrival.
Harold W. De Letts, meat cut
ter for the Valley Packing com
pany, reported to city police last
night that his sedan-type automo
bile had been stolen from Liberty
and Bellevue streets. The ma
chine bore Oregon license plates.
PORTLAND, Ore., May 8
(AP) Moving swiftly after their
week of study of proposed ; bod
gets for the coming year, the Ore
gon state board of higher educa
tion met here today and allotted
funds for 1933-34 on essentially
the basis submitted by Dr. W. J.
Kerr, state chancellor of higher
education. The board provided for
centralization of the work of
agriculture at Oregon State col
lege, appropriated 55,000 -for mu
nicipal research at the University
of Oregon, and adjourned.
Every member of the board waa
present except Mrs. Cornelia Mar
vin Pierce, who is in Washington.
C. The meeting was described
as harmonious in every respect.
Scanning prospective income
after the succession of cuts the
educational - funds have suffered.
the board allowed for a further
reduction of 10 per cent from mil
la;e because of falling assessment
valuations, and estimated that the
total unrestricted Income from all
sources, including student fees.
will be 82.369.068.51. The esti
mated requirements on the basis
of the budget adopted are $2,278,-
1 88.19, which will be used to op
erate all six of the state'a institu
tions of higher learning for the
year beginning July 1.
Tried to Maintain
AU of Essentials
Chancellor Kerr emphasised
that although the budget is 20.1
per cent under that of a year ago,
every effort has been made to
maintain all essentials in instruc
tional work on all campusea.
Slashes as high as 48 per rest
were made In administrative coats
and extension, he said.
Staff reductions are severe, the
chancellor stated, yet the "blow"
was softened as far as possible by
dividing the work so more per
sons will be on a part time and
fewer on a full time basis. Bven
so. he said, the reduction of sal
aried start members on a full-time
equivalent basis will be consider
able compared to last year.
Summer schools are Included
in the budget and will be held
as usual at Eugene, Corvallli and
Portland with a post session at
Eugene. They will be held, how
ever, on a much reduced Income
and will depend more on student
fees. The normal schools are on
a four-term basis, so the sum
mer work Is a regular part of
their instruction year.
Radio station KOAC at Oregon
State college was retained fa the
budget,' but on an allowance
more than a third under that
of last year. Staff members of
the station offered to go on two
thirds time.
Scboenfeld Heads
Agriculture Work
The reorganization In agri
culture at Oregon State will place
instruction, research and exten
sion all under the centralized di
rection of one dean of agricul
ture, and W. A. Schoenfeld. pre
sent dean and director of the
experiment station, was desig
nated to head the unified organi
sation. Paul V. Maris will con
tinue as director of extension,
which will remain Intact, as a
unit of the combined system.
The present 10 departments
in the agricultural school, tn tlie
Instructions! division, were merg
ed into three general divisions
of plant industry, animal Indus
try and agricultural economics.
Present heads of those depart
. (Turn to page 2, col. 4)
Increased to 6,000.
Board Delays Pay Ruling;
Holman Proposal Scanned
The state board of control.
meeting here yesterday for the
first time In weeks, deiayea imai
action on the mooted salary re
duction question nntll next Mon
day. May II.
In the meanwhile tne noaras
mamWs will consider a rour-
nolnt program for handling tne
salary question, as submitted by
Rufus C. Holman, state treasurer.
TTla nranosal follows:
All payrolls auDmittea 10 ine
board of control by elective offi
cials for their respective depart
ments be Adopted and approve
for payment
AH payrolls submitted by the
aunertntendents of state Insti
tutions be adopted and approved
for payment.
AH payrolls et those depart
Beats,- over which the board ot
control does not exercise author
ity of appointment, he adopted
and approved tor payment as
submitted, subject to recommen
dations et the elective official, or
officials. In whom may ' repose
the annolntlv ' sower et the
commissioners or heads of said
That all payrolls of those de
partments whose heada are ap
pointed by the board of control
be subjected to detailed exam
lnation and such action taken
In each ease as the board ot con
trol may decide upon.
Holman said his suggestions
were tentative, ana mat ne
would be agreeable to any
amendments which would expe
dite or simplify the work of the
board under the law.
Hal K. Host, secretary of state,
declared that It probably would
be difficult to distinguish be
tween elective and appointive of
ficials and their recommenda
tions. He said a number et high
ly technical questions also enter
ed into the administration et the
law. and that he desired a few
days to study the Holman recom
mendations before taking defin
ite action.
I "Would you be willing to go
The Day in
By the Associated Press
Senate passed admialstratioa
securities resralatloa bill aad ad
journed srattl Wedaesday.
Colonel Charles A. Lindbergh
arived to testify la trial of Gaston
B. Means and Norman T. Whit
aker on charges ot defrauding
Mrs. Evalyn Walsh McLean is
connection with kidnaping of
Lindbergh's son.
ParUansentary tchaicalttiM
ia hoaee seat tana relief -sanation
bOl back to eewf ereace be
tween seaate and bowse. "
. Senate confirmed J. Jf. T.
O'Connor et California aa comp
troller of the currency and two
members ot civil service commis
sion. .;, ' . ,
Senator Catting1 (Ben-, If. M.)
tntrodsKed . six bflUea dollar
wabllc work MIL
Labor opposition was Indicated
as house Interstate commerce corn-
down the line and reduce the mlttee negan aeanngs on aamia
(Turn to psge 2. eel. 1) stration emergency rallroadJbUl. .
1930 1.75 Inches. : . except ior nuio irui m iu aV-
rie, Ind.