r.-.. BE' THRIFTY "T Save many times tb price f your Statesman subscrip tion by using Statesman ad vertlsenients as your baying guide. - WEATUER-' " Unsettled with light ratnsj today; Friday cloudy; liax. Temp. Wednesday S7. Mia. 4i; river 4.6 feet, rain JS tech, south wind. i . POUNDED 1831 1 ( EIGHTY-THIRD YEAR ' Salem, Oregon, Thursday Morning, May ig, 1933 No. 45 4 1 r HITLER SITES Welcomes Roosevelt Peace Proposal; . Moderation -i r Of Talk Surprise? v President-Watches World's - Reception Tof Scheme .l ,v:. Outlines' Action - EItLINr ' May it irCAP)" Chancellor tHltler today - in . Us eagerly " awaited ' pronouncement befor the relcbstag, proclaimed Germany's demand for equality in, armaments, accepted President Roosevelt's i proposals ; for world peace, and announced 'Germany readiness to cooperate with other nations 'in guaranteeing interna tional security and tranquility. -There Is but one great task be fore the world, namely, to secure the peace, of the world, the Nazi chieftain asserted in an address which, while stoutly reaffirming Germany's ; "right to lire" on equal terms with other peoples, was marked by odtIohs modera tion. ' ' . The German chancellor roundly scored the Versailles treaty, but pledged his government to abide by It until some better instrument should be found to replace it. WASHINGTON, May 17 (AP) Friendly but non-committal ex pressions from France and cordial response from Germany were weighed, by President Roosevelt toaight as he prepared to follow up his direct appeal for world wide reduction with important di plomatic moves at -Genera. At the arms conference which reopens there tomorrow, the Unit ed States spokesman, Norman H. Davis,, has promised -'. bis country would "make very great efforts to assist in the maintenance . of peace," once the determination to maintain it is evidenced by genu ine steps toward disarmament. In the meantime, the president is refraining .from . stating just what, those steps wilt be. The ex tent to which the&aited4$tates would go toald in assuring safe ty against attack : bears directly on the French demand for "secur ity," without which she had hith erto refused to sacrifice her arms. Gracious replies were received st the White House from the chiefs of 12 nations, including Xing George of Great Britain, and President Lebrun of France. Although Germany's official re ply had. not been received tonight, the president closely studied the momentous arms declaration of Chancellor Hitler, which was re garded here as conciliatory. Unable as yet to determine fin ally on the question of certain state employes' salaries. Governor Julius L. Meier yesterday arrang ed a conference for this afternoon with R. H. Baldock, highway en gineer, when a number of tenta tive salaries la that department will be gone over. The April payroll of the highway depart ment has not yet been certified y the governor. The salary list f the public utilities . commis sioner's office and other state de partments are yet to be examined and certified. , Governor Meier indicated . that the conference would deal with each salary - for which Baldock has requested an adjustment. Baldock and other officials of -the highway commission will attend the conference at the request of the governor. .. - - i Figures show a wide discrep ancy between the salaries recom mended by Baldock for certain employees of the highway depart ment and the amounts they would receive had the payroll been sub mitted on the basis of the actual reductions recommended in the legislative act. , Freight Loadings I Exceed Estimate ; SEATTLE, May 17 (AP)- The freight movement of Pacific northwMt nrndueta in ADril ex ceeded by 1,501 carloads the fore east for the month mad late in March by - the Pacitio northwest advioni- Kurt nf ib . American Railway association, officials dis closed today, although tne volume was below that of any of the pre vious 19 years. . :y Judicial Nod is Given Bicycling 4 PORTLAND, . Ore? May it -f APt T-rpHn. in Its revival.' baa rMlYd the dlenif led approv al of the court. Friends or Cir cuit Judge Clarence 'H.GHhert rt toniahed to see him pedal ing a bicycle down the . city streets to the courtnouse. "T ttiIia and boucbt MEIER TO GONFEft ON SW ISSUES klk e.V ws his vonly comment. ; President Signs Farm-Inflation Bill If-1 " "" -" r -4 - y :-f " 1 ' I v I i . . ry- - C : 1 : '.'.' r- ' n.. ' i. j ' .i ' ''- " '-'l- A : ' . oL- ttL Sn "tfK V 0f" of mtte Uoas " President RooeeveU put his signature to and "iJ!T which Wm almost unlimited power to raise crop prices, reflate currency and lighten farm mortgagee. Standing behind the nresident mrm. left t j Cnni.P-ntT,?.W?11 Misstertppi; RepreeeoiuVe H.P. Fulmer. SouU. toTK SnV. R1?re"ttlTO one" T? Representative John Tahcr, New York, Sena WalUc? Carolina; Henry Morgenth.n, Farm Board head, and Secreiary of Agriculture SCRIP PLAN STUDY Enlarging Relief Program Purpose; Committee to Study Possibility The city scrip plan was broach ed to the council here MoUday night with a view to effecting possible financial savings and in crease in relief work. Alderman V. E. Kuhn, who suggested that the Portland scrip setup be stud led, declared yesterday. He stated that he did not intend to urge the plan upon the aldermen, but ra ther did want it determined "If the city's overlooking something." At Alderman Kuhn's suggestion the council authorized Mayor Douglas McKay to name a special committee to study the w6rkings of the scrip plan now in use by Portland and Multnomah county. David O'Hara, chairman of the ways and means committee, heads the special committee, which in cludes Alderman Henry Vandevort and Kunn. It is Alderman Kuhn's idea to Investigate, the use of scrip in Portland thoroughly and submit an authentic report to the council here. The Portland plan, copied In part after that Instituted here last I year, calls for Issuance of scrip in payment of city bills, as desig nated by a government board. Re demption of the scrip Is made through 50 two-cent stamps af fixed to each dollar's worth of scrip. "Salem has a monthly payroll of approximately $8000," explain ed Kuhn. "Suppose the city should pay $200 of this amount in scrip. Id a year the sayings would be $2400. But $5000 savings is not a high estimate." GMUMTES THREE The annual graduation exercises of the Salem General hospital training school for nurses will be held tonight at 8 o'clock at the First Presbyterian church. This year's graduating class is compos ed of three women: Eva L. Jones of Saginaw, Ore., Pearl E. Tf en- helm of Corvauis ana LnaDei Shuttle worth of Minot, N.-D. " rw "H. Dancv. nresldent of the hospital hoard, will preside and the main address wm ne given dj Ret. Frederick A. Well. Invoca tion will be led by Rev. Grover C. Birtcbet. Several musical numbers will be included on the program. . The class win pe presemea oy Dr. C. A. Downs, diplomas by Dr. xi c. rindlev and nins by Miss Natalia Spandler. instructress of nurses. T EXPLAINED BY K GENERAL HOS T Fruit Cany-over - Season Outlook is Good While local weather conditions and the ' more far-reaehing as pects of - tariff .and .foreign ex change may put something of a quotation mark Into approaching season of activity for Baiem,can ners, at least one 'bright spot Is evident as the new year comes on. That is the low stock of goods now; en hand In all Salem t?-rreanneries. ' The ; smallest carry over In several years is tne prom ise.- . . - - . Canners Interviewed yesterday declared it yet early to; make any ; def inite- statements as to packs contemplated for this sea son, nor would eanners venture anything like a forecast of out come on crops. There Is one ex ception to the latteri vThere la little hesltantcy In saying that nmhahiT no Ettersburc straw berries' will be packed In the entire northwest this year. ' No) price talk is heard' yet, Physical Exams Due tor County Forest Recruits Preliminary ohysical examina tions will be given some 175 Marlon county recruits to the for est conservation corps next week by local physicians who are mem- Den or tne Reserce Officers as sociation. It was announced yes terday. Dr. Vernon A. Dourlaa. county health officer and first Lieutenant in the reserves, and five or six other physicians will conduct the examinations, at the Red Cross offices. No mobilization orders have yet been received for recruits here. The county's quota to date Is 12C men. Rebuttal Testimony Aimed At Defendant's Repute Marks Day's Grind Eugene, Ore., May 17 (AP) With the announcement that sev eral witnesses are yet to be called, the state today Indicated it would not complete until late tomorrow its rebuttal testimony in the first degree murder trial of Mr. and Mrs. Llewellyn A. Banks for the slaying of George Prescott, Med ford constable. Several witnesses were called in rebuttal by the state today whose testimony was to the gen eral effect that Banks, a former editor and orchardist who was a leading figure in an extended po litical storm In Jackson county, had a poor reputation in Medford for veracity and as a law-abiding citizen. The same witnesses de clared Prescott was not of a quar relsome nature. Once the state completes its rebuttal testimony, the defense will put on several sub-rebuttal witnesses,, and it was indicated arguments may not be started be fore Friday. With each side esti mating it will take a day for Its arguments, little prospect was seen that the case will be given to the Jury before Saturday. Highway Shops Veteran Called -James G. FaJrfowl, 75. respect ed, former employe at the state highway shops here, died at the Deaconess hospital last night after a protracted illness. He was a native Oregonlan, born near The Dalles, and had lived in Salem for 1 0 years. - Funeral arrangements are In charge of the Clough-Bar- rick company. Small; either, except on strawberries. Offers' of three cents - and two and ; three-fourths cents per pound have been made on these, but growers have not signed readily at these figures. . Buyers offering these prices worked, the fields about Lebanon and . Scio rather extensively early this sea son. It Is said. Naturally, price developments will be one factor In determining the quantities of fruit packed la this county this year. . As far fa any ventures are made now on crop outlooks, they go. something, like 'this: Cherries promise a good crop in spite of the rains: prunes also look good at this stage: logans damaged to a questionable extent by the freexe; red raspberries damaged slightly. Paulus Brothers - anticipate making a fairly good pack this - (Turn to Page 1,'CoW- 41 BllgWILL. BEER ISSUE BEFORE ALDERMEN TONIGHT Ten Sign Call for Special Meet; Recommendation Lacking on Bills For the second time within lea than two months, the city council will convene in special session to night to vote on measures that would permit the sale of 3.2 per cent beer in Salem. When th ntv recorder's office closed at 5 p.m. yesterday, 10 aldermen and May or Douglas McKay had signed the call for the meeting. The two ordinances up for final passage will be renortMl Ant fcv the ordinance committee without recommendation it v tentative ly decided by the committee at a meeting last night Aldermen Watson Town leod, chairman, and David O'Hara voted against the initial beer - licensing ordinance last montn, while Walter Iuhrer, third member, voted for it. Continued power of the police to enforce the charter prohibition of the sale of intoxication bever ages will depend upon the coun cil's action regarding Alderman Henry Vandevort'a ordinance re pealing the present enforcement ordinance, and the bill Introduced by Alderman Walter Fuhrer and Frank Needham. Tho latter bill automatically drops the ban on sale of "non-Intoxicating" malt drinks. No licenslnr nrovision is In cluded in the Fuhrer-Needham bill. Though the pro-3-3 aldermen included a license system in the ordinance they attempted to have passed early last month, some of them now state that such a plan could not be enforced, if fought, because of the charter prohibition against sale of malt beverages. Oregon Fourth In Intelligence Survey Reveals PORTLAND. Ore Mst IT (AP) An "index" of cultural-In tellectual development" nlaces Oregon fourth among the states in the average Intelligence of Its people, according to a special dis patch to the Oregonlan today irora flv xorx. The Index, based on mental tests among school children, ar my intelligence tests, , Illiteracy percentages, magaxine readers per 100 of , total population and oner tests, was presented before the annual meeting of. the Ameri can Eugenics society at New York. Washington was rated first: Cali fornia second and Massachusetts third. Summer School Not to be Held At . Willamette Abiding by the policies of the executive committee Willamette university officials have decided definitely that no summer school will be held at the university this year. Dean Frank M. Erickson an nounced last night. " Although no summer school was held last year such a project for this summer had been talked to some extent. The last summer courses were offered In 1131. Equine Spleen is Vented on Autos Motorists parked pn the west side of the Guardian build rag hur riedly telephoned for aid of .the police at i o'clock yesterday af ternoon when a draft horse kick ed out the tailgate of tho trailer In which It was standing and bat tered nearby auios with Its shod hoofs. The owner of - the horse soon arrived on the scene, quieted the animal and secured It In -tho trailer again, f-'-v:"" - OUTLAWS SEIZE TWO AMERICAN :C(i PUNCHERS Baeza's Bandits Surround Pair Hunting Stolen Cattle, is Report Father of one Captive may I Head Private Force to ' ' Attempt Rescue ; , ALPINE. Tex.. May 17.-AP) k Fear for the safety of two Am erican cattlemen held captive by a band of Mexican outlaws in the wilds of Coahulla was expressed tonight as authorities swung into action to bring about their rescue. The cattlemen, Art Hannold and John Rollins, each about 35 years old, have been missing since May 9, when they rode away from the Hannold ranch near San Vlncente on the trail of four horses stolen by rustlers. They forded the Rio Grande and bead ed south into the desolate desert region south of the border. About 20 miles from the river they were surrounded suddenly by a score of bandits headed by Cancalario Baera, desperado, wanted In the United States for murder and by both Mexican' and American authoritiea for cattle rustling. Reprisal for Arreet of Smaa-Klers. Belief Authorities her a were lad tr believe they were captured by the bandits as a reprical for the slay-ins- of two Mexican smneelera bv United States officers on the Am erican side of the Rio Grande a lew weeks ago, and for a threat by HSnnold's father. C. Han. nold, to file charges of cattle teaiing against Baeza. Baera. with a lar well-armed followers, has been operating in the sparsely settled region south of the border eight or nine years. Telegrams signed by county of ficers unS tha American ljrlnn here were sent today to Congress man. R. E. Thomason In Washing ton, advising htm dt the eerlous- nvmu vi ids camemen a piigax. Conanlar Officers to Attempt Release-" xnomason advised that the state department had taken up (Turn to Page 2, Col. 6) BAPTIST SECRETARY EUGENE. May 17. fAP) Dr. O. C. Wrlxht of Portland. tendered his resignation as ex ecutive secretary of the Oregon Baptist convention at today's ses sion of the convention. The resig nation Is to be effective Novem ber 1. Dr. Wright has served for 21 years in his present capacity. The board accepted his resigna tion of appreciation. The Rev. Alfred Danlekon of Bend, was elected nreaident of the Oregon Bantist minister' conference; the Rev. W. T. S. Spriggs of Klamath Falls, vice president, and the Rev. William Taylor of Springfield, secretary treasurer. Officers elected for the wo men's state society Included Mrs. H. R. Lowry, Portland, presi dent, and Mrs. Odell. West Linn, vice-president. Dr. H. J. Maulbetsch of Port land, was elected chairman of the men's council and Dr. Kink- ley Adams of Salem, vice-chair man. Beggar Records Income to Avoid Fate oi Capone PORTLAND. Ore.. May 17 (AP) Police Detectives Grislm and . Price have nominated John Brown. 15, as the most systema tic beggar. They searched him today when he was arrested on a vagrancy charge. "What are these papers?" ask ed Price. "My bookkeeping." Brown re plied; "See, I made $2.20,. Sunday, only to cents Tuesday, a bad day, and $1.73 Wednesday." -Asked why he kept the record. Brown re torted: - "So I can figure out my Ineome tax. You know what happened to Al Capone." Late Sports PORTLAND. Ore., May IT (AP) Richard Stahl of Berlin defeated Ted Thye of Portland, two falls out of three. In tho main event of tonight's - wrestling matches here. 8tr hi weighed 215 and Thye. 210. ' Wont Bock-Cheung, 2 It. Chi cago Chinese, and Bob Kruse, 210. Portland, wrestled five rounds to a draw la the seml-windup. each taking a fall. Fred Maraccl, 175. Warren.. Ore., won. a. fall from Ossip Slavlnskl, 175, Russia. WRIGHT RESIGNS AS Log Maid Rate Reduction Canalization Pleas Valley Pictured as World Bread Basket Productivity of "Salem , Region Stressed When LocaL Delegation Appears Before f Board .' Of Engineers; Decision Delayed. WASHINGTON, May 17. ( AP) Describing the Wil lamette valley in Oregon as one of the "bread baskets" of the world, the Oregon congressional delegation and a group of Salem and Portland men today urged the board of United States army engineers to undertake improvement of the Wil lamette river so as to make it navigable throughout its length O of C3 miles between Salem and BELIEF FUNDS FOR COIiratllED Road Workers Last Half of Month may not Receive Expected Amount Whether or not halt of the 1800 to 1900 men employed on the Marion county road relief pro jects will receive the same amount of work and remunera tion this month as have those who already hare put in their month ly share of labor will be deter mined at a meeting of the county relief committee to be held today noon at the Bohemian restaurant. Returning from a conference with Reconstruction Finance cor poration representatives at Port land yesterday, members of the local committee reported that It appeared doubtful the county would receive additional $5000 requested for this month's relief activities. The state relief com mittee has budgeted $23,000 for Marion county. The R. F. C. representatives de clared that at present no funds were In sight with which to In crease this county's quota, accord ing to J. N. Chambers and County Commissioner Roy Melson, mem bers of the local relief commit tee. It was pointed out to them that administration of relief (Turn to Page 2, Col. 3) PORTLAND. Ore.. May 17 (AP) Oregon's share of the $400,000,000 for roads and bridges which would be Included In the public works bill Introduc ed in congress today would be about $5,768,000, It was stated to day In a special dispatch to the Oregonlan from Washington, D. C. This state's share Is estimat ed as $1,442,000 out of every $100,000,000. the dispatch said. The bill would provide for sec ondary roads out of the $400,000,' 000, the roads to be selected by the highway commission and the secretary of agriculture, the dis patch pointed out. Maintenance of the secondary roads, however. would be up to the state or pout leal subdivisions. J. M. Devers, attorney for the Oregon state highway commission. was tonight analysing the bill to determine how Oregon would be affected in the event of Its pass age, according to the dispatch. and he will wire the state com mission for directions. It was be lieved at least some of the bridges on- the Oregon coast highway could bo built out of the allotment for tnls state. OVER FIVE MILLION FOR OREGON ROADS 7 uition-lransportation Battle Looms in County Throughout Marion county a scurrying for nominees for the county high school tuition and transportation board Is on, ac cording to reports coming to the county seat The final day for filing nominations is Juno 3; the election of the new board, pro vided for by tho last legislature. Is at the annual school meeting, Monday, June 19. The issue of the election eon test ta tho question of transport tatlon ' for non-high school stu dents to tho high school assigned to them- tor attendance by tho county . board. A considerable group of . taxpayers In the county wants transportation' abolished and this group, tike proponents of transportation, seeks to ' nomin ate candidates for tho board who will act in accordance with the wishes of tho anti-transportation taxpayers.. l . i-- I . Tho county as . far , as non- Portland. Representative Charles H. Mar tin told the board that the valley Is the greatest hop-producing area In the United States, and in addi tion is one of the most productive fruit and nut districts in the country. With better snd cheaper water traffic to Portland, he said, a vast territory would be benefited. The direct water hanl would put the produce Into Portland where ocean-going ships are docked. Senators Charles L. McXary and Frederick Stelwer headed the Ore gon delegation In the presentation to the board of engineers. It was explained that the district engin eer in Portland had recommended such Improvement of the Willam ette at a cost of about 16.000,000, but that the divisional engineer had vetoed his suggestion on the ground that the volume of traffic would not be sufficient to Justify such an expenditure. The board, la taking the case (Turn to Page 2, CoL 5) Hughes Proposes Utilizing Forest Service Data; Work Required The city of Salem may save hundreds and perhaps thousands of dollars In Its surrey of the proposed Marion lake water and power development by the use of Information already compiled by engineers of the federal forest service, Alderman S. A. Hughes announced on his return here last night. He spent the day In Port land conferring with forestry of ficials In regard to this develop ment. Mr. Hughes Interviewed a Port land engineer, who, he said, prob ably will be employed to carry on the needed surveys, with the co operation of City Engineer Hugh Rogers. The city is required to make certain surveys If it Is to retain Its water and power rights at the lake. The Marion lake development. a municipal sewage disposal plant and the proposed municipal dock will be among the projects Alder man Hughes and his committee will suggest to Governor Meier for inclusion in Oregon's portion of President Roosevelt's public works program. Aldermen David O'Hara and Carl Arm priest are the other members of the commit tee studying these projects. House completed congresstlonal Changes in Hop Market Lacking No change In the hop market was recorded yesterday, the top price staying tight at 75 cents. Al though there were no sales, new inquiries from the east were re ported. high school -area la has already been divided into uve zones By tho boundary board. Each of these man. I. entitled to a representative on the board. While the election Juno 21 will be bv the school territory at large, the uigaesi caaaiaato in each sons will ho nicked. A slate of pro-transportation candidates, haa h iniA and It Is -understood tho Kduea. tlon Promotion association.' which SLS a . oeueres in transportation, will attempt to center its support on one candidate in earn tnn. Heretofore tho matter of trans portation was mandatory en the county boundary, hoard which had to arrange routes, make eon. tracts With schools an A nrovtd for a sufficient tax levy to pay m (rvBsporxsiion costs xp to stv a pupu a year. The new (Tarn to page X, CoL I). MAY SAVE I COST I SURVEY Ruled mi Substantial Drop In Cost Of Transportation is Effective June 1 Will Approximate $2.50 as Compared to $3.90 per Thousand, Estimate Substantial reductions la freight rates between niinn Winona, terminal points for log naming operations or the Charleo K. Spauldlnr Lorrinr rnmnmr user of the Valley and Silets an souinern raemc railroad lines. were ordered yesterday by Charles M. Thomas, nubile utilities mlssioner. in a new rate schedule errective June 1, 1S33. The new rate anbstltntom charge of $3.00 a thousand feet lor tne Joint haul of logs by the two railroads for the $3.90 chargo in effect the last 11 vear and tm addition, grants a flat $18 a car iieara load cnarge on logs hauled be tween the two points, the carload rate being effective only for 15 or more carloads at a time. On an average of 7000 board feet te the carload, the prevailing new rate would approximate $2.59. "While we sought a $$ a thou sand rate, the new schedule is fairly satisfactory.- Charles K. Spauldlng commented last nig hi when Informed of the utilities commissioner's order . Tho car load rate especially meets oui purposes and will make It poaaible for us to compete si we have not been able to do under the $3-9 charge." Expects it to Mean Resumption of Bawiag Spauldrng Mid he was qnite certain that the reduced rate meant early operation of the mill here which has been closed for two years. "We have considerable repair work to do and our final operation depends on whether or not the two railroad lines affect ed by the new rate order wilt abide by the commissioner's deci sion without sppesl," Spaulding ssld. He indicated that acceptance, . . without appeal, of the rate by tho railroads, meant operation of tho mm locally within the next few months. In arriving at his decision. Commisioner Thomas pointed eut that lumber bad dropped at least one-half In retail price slaco the rate was established and declared that railroads must take cognis ance of the value of the product they were hauling. Thomas also Indicated that the time of amortization provided fot the retirement of the Valley A Siletx's investment-was too short and that too large a chargo wa being made annually to pay off the book cost of the railroad which was set at $1,082.71$ in 1924. In the findings of the. Spauldlng rate case hearing, tho commissioner cites that tact thai the William W. Mitchell company has a billion feet of uncut timber tributary to tho railroad, that ta Spauldlng interests have 4Sv,toav. 000 feet and that three billlost feet of timber la, addition may yet be taken out over tho Valley Silets line. The commissioner's finding cite testimony by 3. P. Newell, - (Turn to Psge 2, CoL 1) The Day in Washington By Associated Press President Roosevelt asked , congress to authorise $3,300.. 000,000 - pabtlc works pro. grmm and industrial coopein ; tivo control power. House completed congressional action on Tennessee valley-Mas do Shoals bill by adopting eoafe. nco report. Federal reserve hoard ad- -; THory cosnecfl delegation r ' ported to President Room. ' velt suvstained and ' well .; spread Iwslneee Imprest mrm u - . -House banking committee ap proved senate bill to permit re construction corporation purchase of insurance company bonds. Senate took p CHose hank- -in reform hill tot postponed debate as tt ooatlauwd tm : peachment trial mf redraal s Judge . Harold LowderlMirl of California.. . rl Hi