:. 4 Accident Insurance vTob cirnnot afford to be irlthoQt tlw Travel ind Traf- V I THE WEATHER Fair today becmiwa? don dy lata today and ttoaiday, morning fog; Max. Temp. 02, tUn. 84, river S feet, rain .01. Acciucnt intoruM which : ; Is .toned to Statesman nub-' i : bribers for only $1 a ycar.U FOUNDCD 1851 EIGHTY-THIRP. YEAR Salem. Oregon, Sunday Morning. November 5, 1933 l No, 192 EltJCAT rnn-PAi run in run MLtim ill , ITER WORRY J rigs! I Purchase Suggested Subject To Mortgage in Lieu Of Present Plan Believed Water Firm Will Deal; Condemnation is Threat Held Out By SHELDON F. SACKETT The City of Salem's situation on Its proposed municipal water sys tem reminds one of the quandary of a man who wished to bake a rabbit pie: All be lacked was the rabbit. Through the maze of misunder standing enveloping the three years of fruitless endeavor for a city - owned plant here, the fact becomes . Increasingly apparent: The city needs the rabbit. In this case the rabbit may be defined as the Oregon - Washington Water Service company's Salem' plant. ' Without that, plant, it is very doubtful if PWA authorities will grant $1,500,000 to Salem, 30 per cent as a gift, 70. per cent as a loan, with which moneys a moun tain water pipeline and intake can be constructed. More certain Is the city's Inability to borrow . money from PWA to build a com pleting plant; in analagous cases elsewhere In the nation, such re quests hare been flatly denied. PWA is not in business to spend money to permit municipalities to ruin existing businessness. 1 The Immediate, all important question for the city's aldermen. Its mayor and Its newly appointed v board of three to consider the water question is this: How can ; lite rabbit, that is the local, exist ing plant of the water concern, be acquired? To this- writer's mind the two most direct and simple methods have not been canvassed. They are: 1. Arrange with the water com pany to buy the plant subject to the existing mortgage. 2. As an alternative arrange ment, purchase plant with City of Salem bonds, and rather than sell these at the present depress ed market, have the trustee for the water company substitute these bonds under the mortgage Indenture, for the property of the plant here. The first arrangement is the most direct and least complicated and it is herewith elaborated. To date most of the discussion about acquiring the local ' plant has followed this reasonings Agree on a cash price with the water company, that figure now being discussed as 9950,000.' Then find a market for Salem bonds, currently quoted at 17 cents on the dollar. Sell, enough of the I bonds at 87 per cent of par (all i legal -requirements hiving been ' met) to make a cash deal. This would mean the city would need to Issue 1.091,200 In bonds to pay 950,000 In cash'. The water company could hold that it had oil its plant, for $950,000; the buyer's price however, would be 11,092.000 for that would be. the obligation incurred to make the deal. ' ' This writer does not believe that cash Is the essence of the ac quisition of the plant here nor does he believe the citizens of Sa lem . would acquiesce in the la- ' Suance of $1,092,000 of securities to get a $950,000 cash price plant , Better Terms are Possible, Mortgage Idea : Hence - the bond assumption purchase which is after all, the easiest and fairest plan: The outstanding long term debt of the Oregon-Washington Water i Service company against the Sa lient property la said to be $903, 000. This figure is approximate; it eaa be accurately furnished by the water company. This debt Is in the form of 6 per cent bonds, - interest payable semi-annually, (Turn to Page 10, Col. 1) River Channel is Found Excellent ; Steamer Running The Salem Navigation com pany's river men found the chan nel from Oregon City n pstream . i Kttr condition than ' ID iuuvu expected, following the three- tMffla lavr.ff Ana tn r. UOuliiB ua -- nalrs to the Oregon City locks, it was reported at the firm's office . ..torriY. The channel, it was stated, is in excellent condl ' tion, enabling the cdmpany to hlo good, carcos on the steamer !" r.v. wbtth is l-ck on . its three trips a week V between - Salem i and Portland. Around ICS tons of general car- ' go is Dn Mod el Homes on Slum Sites Aim of New PW Corporation 1 1 1 s f Sv , V 1 Tit ' V. Icy h BvSlr ' -iWfli1pr1 i f- -t liUf rGS?5 rv 1 i h 1 :4 & ty SMa ! iltt t ' 1 ? 'Mm I ! ; fW Secretary SEC&3fcRi With an initial fand of 9200,000,000, the newly formed Public Works Emergency Housing corporation, nnder the guiding hands of Secretary of Interior Harold Ickes, Secretary of Labor Frances Perkins and Robert S. Kohn, PWA, will begin its donble-barreled program of providing better and cheaper homes for workers and snaking a big dent in army of unemployed. The program will affect 20 key cities in the na tion where plans are under way to wipe out unsightly slum districts and in their place build model apartment houses and nomes, surrounded by playgrounds and parks, as shown in artist's conception of completed project. New York, Chicago, Cleveland ana .maianapous are amongst THREE ME KILLED IN 2 HASHES Two Die Near Oregon City In Smashup; Infant is Victim at Corbett PORTLAND, Ore., Nov. 4 UP) Two automobile accidents on highways leading to this city. claimed the lives of three persons tonight. R. C. Hagglund, 32, and Miss Mary Hauttman, 25, both of Portland were believed to have been killed instantly when their machine collided with a freight truck, two miles south of Oregon City-while Allan George Shaefer, 2, son of Mr. and Mrs. George Shaefer of Pendleton, was in stantly killed when an automo bile in which he was riding with his parents, skidded Into a ditch, on the Columbia river highway near Corbett. - -' Hagglund's body was found lodged between the radiator of the- truck and his car, badly mangled while that of his com panion was thrown 25 feet from the wreckage. The Shaefer boy was thrown from his parents' automobile, along with his moth er, who is being treated for sev eral back injuries in a local hos pital, both striking the pave ment. Gets Two Years For Hop Theit Another penitentiary sentence was, meted out for the James Mc Kay hop theft when. Asa TIndall pleaded guilty before Circuit Judge L. H. McMahan yesterday. Tindall was sentenced to serve two years for participation in the $1700 steal. Similar charges will be pressed against H. K. Helser of Portland as soon as he is re leased from the state hospital where he is now under observation. 60 Firms Enlist, Buy Now Campaign; Starts Thursday Salem's NRA Buy Now cam paign will be officially nnder way Thursday, November 9, Ralph Cooley, committee chair man, announced Saturday. Cooley said the campaign would be held up three days from the original date set in order to permit every business firm in the city to parti cipate. In addition, Cooley's Buy Now committee requested the extra time in which to complete and to distribute official Buy Now material. This includes win dow cards, a stenciled Buy Now sign for each campaign member and a considerable amount of downtown street decoration. "We want to start this, cam paign off with a bang," Cooley said yesterday. "Our committee has found it Impossible to get all details ready by Monday." . Cooley aald be thought . many - & RbBEEzr D.Komr director of housing division of first beneficiaries. National NRA Labor Board . To Take Hand, Seen to Forestall Troubje PORTLAND, Ore., Not. 4. UP) While Portland streetcar employes awaited the decision of Detroit headquarters of the International Streetcar Men's union on their overwhelming vote in favor of a strike, the belief grew here today that the national labor board of the NRA will voluntarily take a hand in the matter in an effort to avoid a strike. - Members of the Portland local voted more than four to one yes terday to strike unless the Port land. Traction company agrees to submit to the national labor board their demands for higher wages. Franklin T. Griffith, president of the company, declined lb com ment other than to state that the employes are receiving 54 cents an hour on two-man cars and 67 cents an hour on one-man cars compared with the minimum of 40 cents an hour provided in the na tional traction code, and that the company has failed to earn operat ing expenses and taxes this year. Gust Anderson, secretary of the Portland Central Labor council, declared - that Portland streetcar men are the lowest paid in the United States. fvKVEX ARC INJURED NEW BRAUNFELS, Tex.. Nov. 4. UP) Seven persons received minor injuries tonight when part of northbound Missouri Pacific passenger train No. 8, en route from San Antonio to Austin, left the track six miles south of New Braunfels. Cause of the derailment was not determined immediately but railroad employes considered it likely that a split rail was re sponsible. Salem merchants who had stocks purchased before higher prices were announced by wholesalers, would push these stocks out to the public at old prices to Illus trate the need of buying now and to afford people who purchase during November, the advantage of low prices which will not be recurrent. ' Meanwhile scores of firms con tinned to send in their approval of the Buy Now campaign and td Indicate they would take an ac tive part in it. Yesterday's mails brought a list of 60 new mem bers. Other firms were urged by Cooley to send in their accept ances 1 to NRA headquarters so personal solicitation would not be needed. Yesterday's participating members, who contributed sums ranging from $1 to $25, Included (Turn to Page 10, Col. C) HENT1 SEEK III STREETCAR M BEARCATS WIN OVER BADGERS BY 6-0 SCORE Crippled Backs Punch Over Early Touchdown, Rest Of Game Deadlock Brilliant Line and Aerial Defense by Willamette Features Contest X. W. CONFERENCE W. L. Pet. Puget Sound 3 0 1.000 Willamette 2 1 .667 Pacific 2 2 .500 Linfield 2 2 .500 Whitman 1 2 .333 Albany 0 3 .000 College of Idaho 0 0 .000 By RALPH CURTIS The crippled, creaking Bearcat back field held together - long enough to produce one touchdown drive and the crunching Bearcat line combined with air-tight aeriaj defense effectively bottled up any Badger threats, and bo Willam ette university's gridmen stopped Pacific's two-year winning streak by turning in a 6 to 0 victory on Sweetland field Saturday night. Taking advantage of a Pacific fumble on the Badger's 37-yard line early in the first quarter, the Bearcats got going immediate ly, Johnny Oravee despite some new ailments added to his bad ankle ripping off a 13-yard run to Pacific's 24, followed by two more first downs to the Badger two-yard mark. The Badgers held there for two downs and then Gor don Williams plunged over for the touchdown. His kick for the extra point was wide and the scoring was ended for the evening. A second drive was halted by a penalty and a pass Interception, and when a third one bogged down on Pacific's two-yard line Coach "Spec" Keene of Willam ette took his cripples, Oravee and Mills, out of the .lineup and let the defense take care of the rest of the game. - That left the contest in a stale mate condition with Pacific con stantly in its own territory ex cept momentarily after a couple of pass interceptions. The Badgers hurled passes repeatedly but never once connected, and although the aerial threat helped their running attack, they accomplished only two first downs, one on a penalty and the other when Killits for once broke away. Manfred Olson and George Can nady, two more of the Bearcat ball carrying cripples, took the field in the second halt but. Inactive for most of a month, they did not fare any too well although Olson smacked into the line with all his wonted power and caused a couple of .Badgers to be carried off the field. The only scoring chance in the (Turn to Page 10, Col. 4) L Rereglstration of Marion coun ty unemployed continued at the federal reemployment agency here and branch agencies throughout the county -last week in volume higher than anticipated after the first week's intensive registration drive. Manager E. T. Barnes an nounced' last night. During the week 506 men and women regis tered, bringing the total to 1387, with additional reports due from the branches at Woodburn, Silver ton, Stayton and Jefferson. The various offices of the' re employment agency , will continue to take registrations for s u e h work as may develop from fed eral relief projects, Mr. "Barnes said, as well as from local under takings. Work on the r e a d i n g room in the Salem office, where applicants may await job calls, was nearly complete yesterday. Windows bare been cot in the rear of the building, giving better light, and a large quantity of ma gazines collected. Relatives Post Reward for Body A $2SC reward was posted by relltives yesterday for any per son finding the body of Leo Zle linskl, Marion county special de puty sheriff who is believed to have drowned in the Clackamas river last Monday. Search for the body was instituted following the discovery of Zielin ski's car In SO feet of water in the Clackamas river near Oregon Ityk It Is thought he fell asleep at the wheel. MP DYED in Proposes New Industry Plan i" l J -4 J , -, fill Hi r Gerald Swope, industrial magnate, who has proposed creation of a super-chamber of commerce to handle the recovery program on a permanent basis. Govern ment authorities seem loath to hand over the authority to a private, organization. Central Press photo. L DEFEAT CHIGO 20-0 Teachers Upset Dope, Score In Each Period Until Last; Game Fast MONMOUTH. Nov. 4 (Spe cial) Larry Wolfe's trickster football team upset the dope and thrilled an Oregon Normal school homecoming crowd here today by defeating the invading eleven from Chico State Teachers' col lege, Chico. Calif., 20 to 0. This was the Wolves sixth consecu tive victory over the Chico grid sterB in as many years. Snapping out of a start In which Chico outplayed the home team, the Wolves' plays began to click with Graham. Edwards, Tl hila, Johnson and Mahan dishing up quarterback sneaks, end runs off tackle plays and forward passes. Graham passed to John son on the Chico 15-yard stripe and Tihila ran around end for the first touchdown as the quar ter gun barked. Conversion fail ed. In the second period, Johnson scored the second touchdown tor the Wolves on a sneak play up the sidelines. O. N. S. converted, putting the score at 13 to 0 where it stood at half time.- Late in the first half Chico intercepted a pass and then passed to the Wolves' nine-yard line but was (Turn to Page 2, CoL 7) DEBT PARLEY OFF WASHINGTON, Nov, 4. UP) President Roosevelt and Great Britain's representatives came to the end of the road today on the proposal for downward revision of the war debts owed this coun try. JUDGE KIRBY DIES PORTLAND, Ore., Nov. 4 UP) Judge Home Xlrby, 49, of Kel so, Wash., superior judge in Lew is county for 16 years, died In a hospital here tonight. World News at a Glance By the Associated Press Domestic i Washington. Roosevelt re jects farm price-fixing plan; five mid western governor disappoint ed. Des Moines. Leaders of Na tional Farmers Holiday associa tion order major offensive nnder strike calL Washington. ; Johnson pro poses Ford exception to avert pro jected factory "lay-off." Detroit. Ford proceeds with "lay-off plan, describing is as compliance "with the new prohi bition against work in this conn try." Washington. Anglo - Ameri can debt conferees unable to find basis for solution. Foreign: Berlin. Goering makes bitter denunciation of communists at Reichstag; fire triaL Jerusalem. Mystery third figure enters inquiry into slaying of Am erican dancer and Indian. Vancouver, B. C. Texas Gul non,' night club entertained, criti cally ill. The Hague. Lindberghs guests of honor , at aviation ban quet, . ; . . Rome. Foreign office denies dissolution of chamber of deputies is contemplated.' NOMA 6R DSTERS E ST Major Offensive Ordered by Milo Reno; Secretary Wallace Flayed Roosevelt Urges Governors To Back His Program, Spurning Theirs DES MOINES, Nov. 4. UP) Leaders of the National Farmers' Holiday association agricultural strike ordered a major offensive tonight, after the federal admin istration rejected their demands for C08t-of-production farm prices. Sounding' the call to. leaders in the 21 states where the associa tion claims members to be ready to shove the non-buying, non-selling movement into "full gear," Milo Reno, organizer of the cam paign, warned: "The responsibility for what ever happens in the future will rest squarely on the shoulders of the administration and Secretary WallaEe in particular." Already tne two-weeks old strike has been .marked . by one slaying, six creamery bombings in Wisconsin, battles between pictet ers and anti-strikers, and an ap peal by a western Iowa sheriff for national guard troops. Milk and livestock shipments have de creased materially at Sioux City. Iowa. WASHINGTON, Nov. 4. UP) President Roosevelt today flatly rejected price-fixing and regimen tation of farm production and sales as the solution of the farm price emergency. He turned down the program submitted by five midwestern gov ernors in the face of their pre dictions that his decision would lead to rapid and widespread in crease In farm unrest and disor ders, then urged them to get firm ly behind his own adjustment pro gram. TERMS OF WATER DEAL IE STATED Senator Charles L. McNary who has been trying to get action with reference to the loan-grant of PWA funds for the Salem water works, received this telegram yes terday from his Washington of fice: "Just received by special mes senger memorandum from Major Crawford, public works, relative Salem water -works loan which reads' as follows: " 'Completion of the bond pur chase contract in the Salem, Ore case is apparently held up pend ing Information" as' to: First, has the city disposed of litigation now pending in the federal district court; second, has the city of Sa lem purchased the privately own ed water distribution -system or made arrangements to do so; and third, does the city of Salem pro pose to purchase the existing pri vate system with a portion of the $1,500,000 bonds authorised. If the city of Salem so desires we will Immediately prepare a bond purchase contract made possible by the. information available. However until we know all the' conditions of the final agreement between the city and . the private company It might be that the bond purchase contract will contain conditions which the city could not comply with and necessitate a new contract and delay of time.' PEGGING REFUSED 1 IE FLARES Education Week to Start Monday; Schools Observe Combining r e g n 1 a r activities with a series of special programs, Salem's 11 public school will nnlte to keep American Education week, November to 12. Keyed to the emergency in education the theme for this, the- 13th annual celebration of a nation's recognis ed seed for education, will be ap plied in communities of every size and type throughout the United States during the coming week. American- Education week is sponsored Jointly by the National Education association, the Ameri can Legion and the United States office of education. Its purpose is to bring schools and citizens to gether. Special days for "open house," "parents' day" and "visiting day" will b observed in the .various schools of Salem, whUe parents and. interested . townspeople are given a special Invitation to visit during school hours any day and observe methods and progress. University Resentf ul; Dean lor se Hits Back At Higher Board Chief Lumber Dealers Observe Uniform Business Hours Uniform business hours will be instituted here Monday by the nine Salem retail lumber and building material dealers as a re sult of a code and organization meeting held last week, L. R. Schoettler, manager for Lumber Promotion, Inc., code authority, announced last night. Business hours hereafter for these firms will be 8 a. m. to 5 p. m. daily throughout the week. Deliveries will, be made during the same hours with the exception of Sat urdays when none will be made in the afternoon. W. J. Liljequist is president and Albert Mintorn secretary of the dealers', organization. Touhy Gang Involved, Five Face Charge; Younger McGee Gets Life CHICAGO, Nov. 4 (JP) The kidnaping of John "Jake the barber" Factor has been solved and is ready for presentation to. the grand jury within the next few days, the iJribune said to night. Factci, the paper said, has positively identified five members of the Touhy gang, including Roger Touhy, its leader, as hav ing participated In the kidnaping. Others named by officers ac cording to the paper which it says netted the gang $70,000 In ransom money, are Louis Kator, alias Lemar, Gustave "Gloomy Gus" Schaeffer. Willie Sharkey, and Edward "Father Tom" Mc Fadden. KANSAS CITT, Nov. 4 (JP) George McGee, 21, was sentenced to life imprisonment by a jury which convicted him late tonight of participating in the $30,000 ransom kidnaping of Miss Mary McElroy, daughter of the city manager. . The state had demanded - the death penalty, a verdict voted against McGee's brother, Walter, at a previous trial. The Jury de liberated slightly more than three hours. George. McGee denied he was involved but he was Identified by Miss McElroy and her father,. H. F. McElroy, who paid the ran som. " Warren Freed by Jury in 3 Hours; CivilSuit Next After three hours deliberation, the Jury freed N. T. Warren of manslaughter charges yesterday. Joseph Hendricks acted as fore man of the Jury. Instructions by Circuit Judge L. H. McMahan pre ceded jury deliberations. Warren was charged with re sponsibility for the death of Don ald Sucevich, 12 yer old passen ger in the Warren car which Crashed into another car near Hubbard last summer. Suit to collect $37,000 dam ages from Warren is to come up for trial later. First of the special events on the schedule is the reception to be held at Richmond school to morrow night 'from 7:30 to o'clock. Park school will feature "visit ing day" all day Tuesday, when parents wjll have an opportunity to observe regular school. work in the various rooms where each teacher will conduct demonstra tions of classroom teaching and procedure. Two general assem blies will be held, one on Monday morning from i to 9:20 o'clock and one Friday at the same time. "Visltingfdays" at Leslie Junior high school will feature Tuesday and Wednesday - with regular classroom work demonstrated; each' glass period will be so ar ranged that the teacher in charge will be free to meet and talk with parents and visitors. - Annual "open house" at Salem high school Wednesday evening (Torn to Page 10, Col. 8) KIDNAPING LID SOLVED Resignation Demanded As Result of Slurs In College Talk Unfair Attacks Made On Faculty, Claim At Homecoming EUGENE, Ore., Nov. 4 UP) A ringing challenge to speeches made at Eugene and Corral lis Thursday by Roscoe C. Nelson of Portland, -new president of the state board of higher education, a challenge which reached its cli max with, the suggestion that Nelson should resign at once. wa3 voiced here today by Wayne L. Morse, dean of the University of Oregon law school in an address at the university's annual home coming luncheon. Referring to the addresses of Nelson, in wbkfcL Nelson asked for harmony among all persons Interested in higher education and Intimated that a small faction of faculty members was thwart ing that harmony, Dean Morse declared: "I trust that the alumni of the University of Oregon are fully aware of the fact that their alma mater faces today the moet serious crisis in its history. We plunged into that crisis last Thursday when the Honorable Roscoe Nelson, in an address de livered here on this campus, chal lenged the certain fundamental principles of academic freedom. That challenge must not go un answered, and if I understand the temper of your faculty, it will not go unanswered. "Lack of" time forces me to pass over certain astounding feat ures of Mr, Nelson's tirade. . . . Vicious Attack on Faculty -But I shall dwell on Mr. Nel son's Insulting, insinuating, un fair and vicious attack on the faculty of the University of Ore gon. May I assure fou that my emphasis does not mean that I am angry. As a member of tne faculty my feelings are too great ly hurt. My sense of right and fair play too completely crushed to allow me to be angry. I should like to disbelieve what I know to be true, that Roscoe Nelson, brilliant- lawyer, lovable personality, a man for whom I.' can sincerely say I have a deep affection, stands today before the people of Oregon as a man who has been duped. "In his address on this campus, which was surpasses in awful ness only by his address on the Corvallis campus, he charged that there exists on your faculty a little coterie of faculty men whose opposition to the adminis tration roots in disappointed am bitions and frustrated desires. Time and time again he referred to these men of mystery as cat lllnes. . . . Prove Case or Resign Throughout his verbal as saults on th faculty rang a plea tor magnanimity of spirit. Where was there any magnanimity o spirit displayed certain members of the faealty were cullty of carping, 'critical censoriousness. Who are these catillnes I chal lenge Mr.- Nelson to return to this campus and in meeting with the university faculty name his victims and prove a case against them. If he cannot do so, then let him. like the gentleman I know him ta beat at heart, apolo gise to the 'faculty of the Uni versity of Oregon and resign from the board. "He was placed on that board to bring about. harmony. His official acts of Thursday disqualify him completely as a harmonizer, there fore he should resign at once in the hope that there can be added to the board a man of judicious ness, a man who will keep himself free from' partisanship, a man who will not Attempt to intimidate the ; faculties, a man 1 who recognizes that higher education in Oregon can be saved only , by a . friendly exchange of points of view among the board, the administration and the faculties. Mr. Nelson's attack on the university, has made It im possible for self respecting faculty men and women to work in har mony with him. : "After he left this campus, Mr. Nelson went to Cor vails and there he directed criticism after criti cism at the faculty of the univer sity. "Amidst much applause he flay ed, the university. Unless you ' heard and saw his exhibition, you ' can not believe the facts. How- ever, the Emerald report of that ' speech 'is accurate, and I shaJ (Turn to Page 3, CoL 4) 1