The Oregon statesman. (Salem, Or.) 1916-1980, January 24, 1934, Page 1, Image 1

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An SUtwrnaa'carrie are
charged for all paper they
deliver. Please totlf y the of
' flee when changing address.
' Telephone 0101.
V HWr .bsit becoming uaset.V
tied! ; today,' raia : Thursday; i
Max. Temp. Tuesday H 7,
. t Mim. 83; river- 16 feet, rate
: .43 inch, ettherly winds.
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pounded: 1051 '
Salem, Oregon, Wednesday Morning, January 24, 1934.
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Statewide Protest Faced jn
r In West Virginia as Wen
.Leave 'Jobs ; T
Administration " Fore casts
Entire Program May be "
i ;, Ended bv May 1
2 3 .-fl-Answering ? threats of ft
statewide CWA strike,' adminis
trators of Kanawha county, where
workers x today i dropped their
tools, tonight called a halt on all
projects for 48 hours-
Several hundred men left thel
Jobs today, and. attended a .meet
tag of the West Virginia unem
, ployed league. - -
:t Pickets -were delegated to work
projects In the county and order
1 ed to "swell" the ranks of the
' The , county board " considered
: oiscnarging tnose wno parucipa
ted in the walkout.
;f C. F. Seacriat roiced the strik
ers demands. -
"We demand a complete new
""sjetup In' the relief, organisation
he shouted to a crowd of about
' 400 men and women.
VAlso ' we ' demand that men
who" hare been cut off of CWA
projects be put back to work.
t; Further, .we demand a thorough
: investigation of conditions under
J ''ich the med, are working.".
The administration hopes that
- - the 'workers of the clTil works
administration can stack up their
shdveis and go Into private indus
try before May 1.. '
. This expiration date was fixed
defimUely today s by Harry I
Hopkins, director .of the agency.
after a conference with President
Roosevelt. There , was attached to
the deadline date, ?. however, a
reservation that if .priyate Jsds-
try could not find jobs for a good
share of the 4,000,000 workers by
that f time. Mr. ' TtooneTelt woald
consider extending the life of the
MARSHFIELD, Ore., Jan. 23 -(ffVBall
of $125 was posted today
by County Judge D. F. Thompson,
'arrested by city police officers
jshortly after midnight last night
"en a 'charge of drunken driving.
Contention between the county
court and the sheriff's office de
veloped yesterday when Judge
Thompson hurled accusations of
Irregularity at members of the
sheriff's force. The county court
charged that Deputy Sheriff Ar
chie Philip sold a grocery store
in North Bend for S30 under a
tax foreclosure proceeding.
The county court demanded a
written statement from Sheriff
Hess, deputy Sheriff Philip and
from District attorney Ben C.
. Flaxel as to why the store was
old for so little. A detailed list
of the fixtures and merchandise
sold was also requested! It was al
leged $1100 personal property
taxes were, due the county from
the store.
CWA Permitted
To Hire Trucks
PORTLAND, Ore., Jan. 2Z.m
; -The Oreon CWA has been al
JV lotted -130,000 i for purchase of
- (- VV, materials, including hiring of
r,v trucks, for the week ending Fri
r ' i day, word today from Senator
t Steiwer, stated.
t i i. 4 The news waa welcomed In lec
. i 'j. ' tions of Oregon where hired
s li Vi trucks were the only means of
f r--s transpornng worxers to tour
I j Jobs.
World News at
a Glance
!' (By the Associated Press)
.Domestic: ' -
' ST. PAUL Release of kidnap
er banker believed near by
friends; grand Jury ready to ln-
- , . " restlgate. ' - -
I , NEW ORLEANS Mayoral pri-
, ' mary fight between, Lonr and
! ' ' anti-Long . forces brings large
f -"-"?ote, ; -----v
i bled United Mine Workers mem
' v-. bershlp, says John L. Lewis. t ,
( A " Foreign: - "
PARIS Cabinet wins vote, of
i-' confidence - in ' controversy 4: over
,w.Bayonne sawnshop.
if t- .VIENNA Anstrlan indepen
jj dence Question may be referred
If ". -i to League of Nations. . ,
PARIS Leaders eonaider
chances of disarmament agree
ment with Germany, slim.' : :
Made No Real Threat
OfDea t h, D is closed
Second Note in Handwriting of Abducted
Banket Reported Received; Arrangements
For Paying Ransom Are Divulged
ST. PAUL; Jan. 23. ( AP) Officials' fear over the fate of
Edward G: Bremer, held by kidnapers nearly a week; was
allayed tonight by disclosure that he had not been threatened
with death. ? 1 V V
As the time when close friends said release of the cap
tive banker for whom 200,000 ransom has been demanded
In Kidnap Case
Commission Ready to Place
Under Contract Large
Projects, Stated
Continuation of federal aid tor
state highways was urged by the
Oregon highway commission
Tuesday in letters sent to the del
egation in congress, requesting
their support of the Haydenrblll
authorizing the continuation.
The commission was prepared
to place under contract immedi
ately, projects totaling as much
or more than the former appro
priation to the state of S 6,1 00,
000 under the public works act,
the letter written by State High
way Engineer R. H. Baldock in
formed the delegation.
. "The president has requested
congress to 'authorize an expen
diture of approximately $2,750,
000,000 for : public works," the
letter pointed Out. "In the last
analysis, the expenditure of re
corery funds for . public works
will be measured by the ability of
such expenditure to create new
wealth through the reduction of
fixed charges. It Is certain that
we hare by no means reached the
saturation point in the construc
tion of highways and that many
millions of dollars can he expend
ed ' in this rery worth ' while
"State highway departments
hare mored more rapidly in the
(Turn to page 2, eoL 1)
hs ' - -t
I "' wZT'-a
- " 'I i o
Re-employment Setup May
Be Changed; Court Learns
Rnrr&TiiE&tion of the federal
re - employment offices in five
counties into one district with a
regional supervisor is contempiat
.a tnr Marion. Polk. Benton. Lin
coln and Linn , counties, Carl F.
Caufleld, state field- supervisor of
the Oregon re employment ser
vice, informed the Marlon county
anemnlorment committee here
Tuesday morning.
Caufleld said the proposed
change waa part of a statewide
nmmtn of cnrtallinx expenses in
operating the offices and reducing
personnel. It the program is car
ried out, managers of the offices
in the five counties affected in
the local district would be re-
moTed and in their place would
h nlaeed RalnK Coleman of : Al
bany, present Linn.;, county man
ager and oldest; in poiniv or ser
vice in the .five-count territory.
ColamaiL actlnr as regional man
ager, would " supervise the work
of employment oriices at saiem,
Albany, Toledo. Corvalll and
Dallas, l-ifr:;;;! fr
CferV wnnld h laf t . In each
of the county offices with D, D.
Dotson, present oiuce manager
here, left with the Salens office
on 370 Court atreet and" B. T.
Barnes, present manager, retiring
from the setup. ?
of Bremer
drew near tneir preaicuons were
that he would be freed within 24
hours sources believed reliable
dltulged that the original kidnap
note contained only a warning,
not a threat.
"Ton better pay off first and
let them (meaning the police) do
their detecting later. Ton better
not cross us," was the yersion
they gaye of contents of the note
which was found by Walter. Ma
gee, wealthy friend of the Bremer
family, shortly after the 37-year-old
bank head . was seized late
Magee previously had said the
gang had threatened young Brem
er with death if police were called
in or the newspapers informed.
It was also disclosed today that
(Turn to page 2, col. 1)
Hickam Busy Interviewing
Candidates and Viewing
Possible Locations .
, PORTLAND, Ore., Jan. 23,-yf)
-Probably the day after the first
state liquor store is opened at
Portland Salem's store will be
opened, and a day or two later
Eugene's store will be opened,
State Liquor Ad ministrator
George Sammis told the Associ
ated Press tonight. . .
. Three stores will: probably be
opened in Portland February 10.
.Those, selected to operate the Sa
lem store will work in the Port
land store the opening day and
those who will . operate the Eu
gene stores will be In the Salem
store on opening day.
Only one liquor store will be
located in Salem at the start, but
another would be added it bus
iness warranted, Sammis - indi
cated. Laurence R. Hickam, super
visor of this district tor the state
liquor commission, put In a busy
day here yesterday and will again
today, interviewing applicants
(Turn to page 2, col. 6)
DALLAS, Jan. 23. (Special)
Four hours' deliberation by a
circuit court jury resulted In a
verdict of guilty being reported
at 8:30 o'clock tonight in the
ease of State against Miles Rus
sell, charged with drunken driv
ing. "Judge Aril G. Walker Imme
diately set next Monday at 9:30
a. m. as time for pronouncement
of sentence. Meanwhile Russell Is
at liberty on ban. '
After being convicted In West
Salem justice court recently and
facing a fine and jail sentence,
Russell appealed to the circuit
court The first trial last week on
the appeal resulted in a hung
Caufleld, in his conference with
the local committee, said the plan
had not finally been determined
upon. The Marlon" county commit
teeman said a Marion county man
should be picked for the regional
managership. They pointed to the
75 a month contributions the
city and coanty here had mtV to
the office, to the large number of
men registered in this county for
work and to the efficiency of the
local office. It was also urged
that both Barnes and Dotson be
retained under a regional super
visor if one was hired.
Caufleld is to report the meet
ing to Guy V. Litner, state re
employment office director,, and
will consult further with the lo
cal committee this week. The new
plan, if effected, would be oper
ative February 1.'
In attendance at the n.eetlr.g
were County Judge Slegmr-nd,
Commissioners J. E. Sin nd
Roy . Melson, J. N. Chambers,
coanty relief chairman. Mayor
Douglas McKay, and Sheldon 7.
Sackett, Harry Levy and F- J. A.
Boehringer, members of the coun
ty re-employment committee-
Proposed salaries for the depu
ties in the-local office would be
118 and 131 a week each. P. r
n s ra
Two Types of Short Term
Notes Issued; Revenue
Report is issued
processing, Liquor Taxes
And Other Sources Aid
Federal Treasury
" WASHINGTON, Jan. 33.-(ff-A
billion dollar start was made
by the treasury today in its giant
task of borrowing f 10,000,000,
000 to meet recovery costs and
maturing debts between now and
June 30.
Two types of short term Issues
were offered by Secretary Mor
genthau in a routine financial
One was a $500,000,000 Issue
of treasury notes, paying 2 per
cent, dated January 29 and ma
turing March IS, 1935. The oth
er was $500,000,000 of certifi
cates of indebtedness bearing 1
per cent, dated January 29 and
maturing September 15 of this
Announcement of the first bor
rowing, which was planned care
fully In conferences between
President Roosevelt and federal
reserve bank officials, coincided
with a statement of internal rev
enue collections for the first halt
of the 1934 fiscal year, showing
total payment of $1,215,545,550
as compared with $744,437,495
for the corresponding 1933 per
iod. Big contributors to the increase
were $140,563,000 in agricultur
al processing taxes which were
not effective last .year, and boosts
of $98,905,000 in manufacturers'
excise taxes, $94,817,000 in li
quor and beer, $79,339,000 In
capital stock levies, $27,981,000
from dividends and $34,024,000
from estates.
In December, the first month
of legal liquor, distilled spirits
paid the treasury $8,651,000 as
compared with $597,921 in De
cember, 1932.
Morgenthau's financing an
nouncement opened the current
period of huge government peace
time borrowing. President Roose
velt has estimated the treasury
must sell $10,000,000,000 of ob
ligations before the end of the
current fiscal year.
SEATTLE, Jan. 13.-(P)-Win&
and rain plagued the Pacific
northwest again today, but weath
er bureau forecasts of lower tem
perature gave hope of relief.
William Skldmore, fireman of
a Northern Pacific passenger
train was killed when the loco
motive and tender crashed
through a .bridge weakened by
the flooded waters of middle Pot
loatch creek, near Juliaetta,
Washed out dikes let high wa
ters of the Cowlitz, Coweeman
and Lewis rivers in Cowlitz coun
ty, Washington, flow into areas
still suffering from tfce floods of
a month ago. Kelso, Woodland
and Castle Rock felt the advance
of flood waters. The.Toutle river
bridge near Castle Rock was
closed to all but passenger cars
for a time.
Storm warnings were posted
along the Oregon and Washington
coasts when a hurricane struck
and started to move southward.
Wind Telocity at the Swittsure
Bank lightship, south of the
Straits of Jaan de Fuca, ranged
from 63 to 75 miles an hour. . ,
WASHINGTON, Jan, 23v-(ff)-A
bill to repeal th law requiring
amortization of the construction
costs of five proposed Oregon toll
bridges within, 15 years was ap
proved by the senate today and
sent to the house.
. The bridges Involved are across
the Umpqua river near Reeds
port; across Yaquins bay near
Newport; across Coos bay near
North Bend, Coos county;, across
the Sluslaw near Florence, and ac
ross Alsea bay near Waldport.
j This congressional action simp
ly amends the law authorizing the
bridges to meet the wishes of the
legal department of. the public
works administration; J. U Dev
ers, attorney for the state high
way commission,' explained : last
- It drops entirely the question of
the amortisation period, leaving
that up to PWAi When the law
was first passed it specified a, 15
year amortizing period to comply
with RFC requirements. J. Under
PWA that will be 10 years, Def
ers said,- ..-....'.. .:
Is New Federal
"Treasury Aide
r-gy&-.yiim Mimi jiiwwsiiwmw m
Marriner S. Eccles of Ogden, Utah,
who was appointed new assist
ant to the secretary of the
treasury recently. Eccles, head
of the National bank at Ogden,
is regarded as one of the conn
try's foremost authorities on
banking and currency.
Additional Classroom For
Highland is Arranged;
May Change Zones
Congestion has reached such a
point in several Salem grade
schools that employment of more
teachers or rearrangement of
some zones appears necessary for
the coming, semester, Superinten
dent George W. Hug told the
school directors last night. He
pointed out that . there were
classes at Englewood, Highland,
Para and Richmond schools with
from 45 to 48 pupils under a
single instructor.
On Hug's recommendation, the
board approved furnishing of a
temporary classroom in the High
land school basement and hiring
of a full, time teacher there. Hug
said the Englewood situation
might be relieved by shifting some
pupils to Washington and Grant
The board also agreed to em
ployment of a half time domestic
science instructor for the senior
high school and return of Frances
L. Welch to fall time teaching In
that subject at Parrish Junior
The elementary teaching staff,
Hng stated, now numbers S3 In
structors, one less than last year
and four less than two years ago.
On the other hand, enrollment is
65 pupils greater than a year ago.
111, COM
CHICAGO. lit, Jan. 23.
Eighteen defendants in Chicago's
huge racketeering conspiracy trial
heard themselves alternately , de
scribed today as blackguards and
thieves and as progressive, saga
cious business leaders who really
thought up the NRA.
The contracts with which they
attempted ' to regulate the - dry
cleaning, laundry, carbonated bev
erages, and other industries, said
Defense Counsel Floyd Thompson,
were much like the codes of fair
competition under the national
recovery act. .
But to Special Prosecutor' Ed
win J. Raber the same contracts,
as well as the unions and asso
ciations whieh the defendants
controlled, were devices through
which to gain control of, profit
able businesses, and "bleed them
white" with dues and tees.
Late Sports
PORTLAND, Ore., Jan. 23.-IJP)
-The Willamette university fresh
men got newer as iney went
along, but lost two' basketball
games to Portland high schools
here today and tonight."
The freshmen gave ? Jefferson
high- scare hut lost $1 to 27 to
night, Morley was high scorer for
the frosh with 15 ....
In an afternoon game the fresh
men, were defeated 31 to 22 by
Benson. Harvey, with 8 points
waa high scorer tor the freshmen
in that game, in which a slightly
different starting : lineup ' repre
sented the freshmen. ! - ;
t- PORTLAND, Ore., : Jan. I3.-(flP5
-Ernesto CavellL 144, Walla Wal
la, knocked put Sleepy Blount,
140, Spokane, In the second of a
scheduled six-round main event
bout here tonight, .v .
Frankie Monroe, 187, Klamath
Falls, won a four round decision
from young Harry Wins, 189,
Longriew, Wash; , r'.x- - i : -,
Walmsley Who Broke Away
From Kingfish Party
Has Huge Lead
Klorer Far Behind; Aides
Of; Mayor Winning lit -
; . Council Race
NEW ORLEANS, Jan. Z3.-jF)-The
old regular organization of
Mayor T. Semmes Walmsley,
which broke up an alliance with
the Huey P. Long political ma
chine to seek re-election of its
ticket on a straight antl - Long is
sue, piled up a commanding lead
in today's democratic primary.
' Returns compiled from the
slow count at midnight gave
Walmsley and his ticket very
nearly a clear nominating major
ity, but the two other major con
tenders, John Klorer, the Long
candidate, and Francis Williams,
independent who based his cam
paign on bitter opposition to the
Long regime, indicated the issue
would be forced into a second pri
mary as they fought a neck and
neck race for the secoud place
total behind Walmsley.
Only 60 precincts from the
city's 262 had been officially com
piled at midnight, and these gave
Walmsley 7904, Klorer 4745, Wil
liams 4218, and Herbert B.
Holmes, an independent, 74.
Walmsley's associates on the
city commission council, seeking
re-election with him held simi
larly commanding leads over the
field of eight opponents.
- BRAWLEY, Cal., Jan. 23.-P)
-Three of four persons abducted
from a hotel here tonight as they
prepared to appear at a mass
meeting of strikers and sympa
thizers had been accounted for
late tonight. A. L. Wirin, attor
ney representing the American
Civil Liberties union, was still
David Sokol, Los Angeles attor
ney, and Mrs. G rover C. Johnson,
wife of a San Bernardino attor
ney representing the vegetable
farms strikers, were found, by po
lice. Mrs. Johnson said her hus
band was in hiding.
Police Chief Lon Cromer said
he had an unverified report that
Wirin had been driven miles from
Brawley and left on a desert
Cromer said he was informed a
group of men entered the throng
ed lobby and led Wirin out
through the rear entrance of the
hotel. Mr. and Mrs. Johnson and
Sokol followed in an effort to free
All fire were forced into auto
mobiles and driven away, Cromer
was advised.
Hopkins Has to
Have Telephone
Number Changed
WASHINGTON, Jan. 23. - ) -Harry
L. Hopkins, who runs , the
civil works and federal emergency
relief administrations for Presi
dent Roosevelt, couldn't sleep at
night because his telephone num
ber was In the book.
Soon after the civil works pro
gram Started he had the number
changed and left unlisted. But
some people have a knack for
learning unlisted telephone num
bers. Hopkln's number was changed
again, but still they discovered It.
Now It is changed every seven
ATHENS, Greece, Jan. 24-(P)-The
supreme state council today
rejected the appeal of Samuel In
suIL former American Utilities op
erator, from a government, ruling
that be. must leave. Greece at the
expiration of his police residence
permit, January SI.
Water Case Removal io
Federal Court is Denied
, Petition of the. Oregon-Washington
Water Service company to
remove the City' of Salem's con
demnation suit to federal court in
Portland was denied yesterday by
Judge tu H. McMahan in an oral
opinion from, the bench. .This ac
tion by the court is the first in
what . is expected to be an ex
tended legal fight.
Judgs McMahan held that it
was not equitable to compel an the
local residents named as defen
dants, to go to federal court to
have their ease tried. The court
said if the - question was simply
one between the city and the water-
company, the latter would
&xteen Foot Level Reached Here, Rise of 2.2 Feet Jki
24;Houre; Ram
Streams including Santiam and McKenzie Raging and
Causing Willamette to Swell
Ferry Service at Independence and Buena Vista Halts;
Pudding River Out of its Banks;' Eugene Expecting
Flood Stage Today; Locks at Oregon City May Close
Soon; Storm Warnings Fly on Coast
DESPITE cooler weather and cessation of rain, the Wil
lamette river surged rapidly upward last night, con
tinuing its. threats to lowlands. At midnight it had reached
the 16 foot level, a gain of 2.2 feet in 24 hours.
The sudden rise was to some extent unexpected here and
the stream had river observers guessing for a time when be
tween 4 and 9 o'clock last night it dropped 0.2 foot.
The Santiam river was pouring into the Willamette at a
rapid rate. At 9 o'clock last night it was hovering around the
13 foot level, showing little change, it was reported from Jef
ferson. State police who returned from Mill City last night
said the Santiam was raging there and appeared to menace
one of the wooden bridges in that
Livestock in the low Indepen
dence areas already has been re
moved to higher ground in many
cases. Ferry service there and at
Buena Vista has been suspended.!
Hope that the Wllsonrille ferry,
which high water stopped Sunday,
would soon be in operation again,
was wiped out last night.
Precipitation here yesterday
totaled .43 inch, .13 inch less
than Monday. ,
SILYERTON, Jan. 23. - (Spec
ial) Pudding river was out of
its banks again yesterday and cov
ered portions of the lower Sa
lem - Silverton road. Many Betn
any school children were forced to
travel several miles out of their
way to get to classes.
PORTLAND, Jan. 23. - (fl3) - A
rampaging McKenzie river empty
ing into the Willamette river was
expected to cause the latter to
reach flood stage at Eugene some
time today.
The McKenzie waa reported to
be higher than any previous time
during the past fall and winter.
The national forest ranger sta
tion at Reserve reported a stage
of 10.2 feet late today.
Higher water levels below Eu
gene were expected to follow. The
reading at Portland tonight was
14.9 feet, a two - foot rise in 24
hours. The river forecast was a
steady rise at Portland Wednes
(Turn to page 2, coL 1)
The, state supreme court yes
terday upheld a decision in the
circuit court of Jackson county,
rescinding a contract for 35000
under which Mr. and Mrs. E. M.
Wilson contracted to purchase
that amount of Empire Holding
corporation stock. The court set
aside a mortgage note for 12000
given by the Wilsons to the com
pany and an additional unsecured
33000 promissory note,, also ten
dered for the stock in the holding
concern. -
The court contended that evi
dence of fraud Is the sale had
been shown and held the use of
a proxy In voting the stock at a
meeting of shareholders did not
constitute a waiver of their rights
to rescind by the Wilsons .The defendant-appellant
in the case was
the receiver for the Empire Hold
ing concern.
The case was considered a test
suit since a number of subscrib
ers to Empire Holding corporation
stock have brought suit to rescind
their contracts.
have the tight to have the ease
sent to federal courts - -C
o a n s e 1 for the defendants
yesterday were allowed additional
time in . which to file their an
swer. j . l - -'
Later they: expect to file their
case in federal court to see whe
ther that body will take Jurisdic
tion or whether it will remand
the condemnation salt to the
eonrtaero. V f ''" "
Local defendants In the suit In
clude D. C. Minto, Jessie Minto,
Jeanette Minto,. the Portland
General Electric ' company. the
Oregon Palp A Paper company,
Keith, Powell. . receiver for the
First National hank of Salemr
i n
Mayor's Friends Prevail on
Him to Make Race For
Sam Brown's Job -
Mayor Douglas McKay became
the first Marion county man def
initely to seek the state senator
ship here this year when he an
nounced Tuesday .that be weuid
shortly file at the statehouse as
a candidate to succeed Senator
Sam Brown of Gerrais who is te
seek the governorship. McKay
said friends had forced him te
make the race.
When he announced he wonld
not seek the mayorship again. Me
Kay said his business affairs
would not permit so much of his
time to be spent in pubUe affairs.
The senatOrship, he averred ye
terday, would take less time,
should he be elected, than the
post he has dot filled.
McKay's candidacy is generally
considered a prelude to a race far
the governorship in four or eigat
years if he should have a success
ful legislative career.
He has been active in public
affairs in the seven years since
he came to Salem. In addition to
operating a large business, Jc
Kay'hag been commander of the
legion here, has served as presi
dent of the chamber of commerce,
has headed the Community Serv
ice organization and has been
mayor. He served as president of
the Oregon state student body ia
1917, had a notable war record
and subsequently was state presi
dent of the Oregon State Alumni
The Washington
(By the Associated Press!
Changes unsatisfactory to ad
ministration leaders were made
by the senate banking committee
in the Roosevelt monetary bUJL
The United States recognised
the new Cuban government.
House leaders of both parties
endorsed a plan to speed con
struction of a treaty-strength
The senate territories commit
tee gave the Philippine legislature
nine months more to accept the
Hawes-Cutting independence act.
W. W. Atterbury, president et
the . Pennsylvania . railroad, was
questioned by the senate and air
and ocean mall committee.
President Roosevelt sent to the
senate a report asserting; that the
St Lawrence waterway would not
Injure eastern railroads.. :
i Wmianj Green, president of
the American Federation of La- '
tr visited, the White House and
reported civil works might be ex
tended if conditions required.
Interior and Jostles department
officials :: investigated charges of
graft in civil and public works. 4
President Roosevelt considered
ereaUon of an NRA agency to
deal with ..excessive price vy
creases.,.. J-i.lyte-iZ-