V for- -a- , - ' i ? '' ' ' ; - LITTLE MERCHANTS All SUtesmasr carriers are : charged for. all papers they - deliver, Please aotif j the of- t flee when changing address. ' Telephone 0101 '. .- : .- HI : . THE W EATHER J . -.r IJiLMttled today and prl. ' ftday. Rains north ' aad west ;portioa of state. Normal" - temperature, Min. yesterday 82. Winds southwest to west I ft 6-2 POUNDED 1 0S1 .1. . .fc- EIGHTY-THIRD YEAR Salem, Oregon, Thursday Morning, January 25, 1934 No. 261 ChHdPaiiehtstWarmlSpringsEagertoHelpin Presidential Party Next Tuesday, January 30th Winsome Guest, War Debt or No L . - I - 'IK' - -'," . . . - TM.i.- : rttttw iii mob r i ;SS t v j -V V,.. : ... ... ..' " '" -.:' ..... SeSte iidsupbei rSISsis BOARD DIGTUiVl MEM OF GEmiKH IB : I i I I f I 1 II. II 1 '! 1- Judge Lewelling Refuses In- junction Against New - , . : Knox Law Board v Police Power Not Abrogated I : by Home Rule. Clause; : A Appeal Impending ; ; ? m: 1 " j.fj.-.it .lit. f '5 ji t ABB COBSUlUUunaiii.7 i u . ; . Knox liquor controL act passed by the second -special session oi me i 1933 Oregon legislature was up held In all particulars by .ledge 4 K G, Lewelling in a memorandum i . ; ! opinion handed down here weo- l ; uesday morning. : I H !- Without passing on the moot - ) auestioa of whether or not the ' ' - quor control provisions of the so- called home rule amendment to - the constitution had been 'repeal-, "ed; the Judge declared that all city enactments on liquor must Joe considered subservient to the sor er el gn police power of the state. Judge Lewelling declared the Knox act a clear exercise of the - police power of the state and thus an act of sovereignity oot to be : overruled by any cityv'y . r No city can declare lawful any - measure regarding the Bale of li quor which the Knox act declares unlawful, the decision holds. The court, declared cities and towns may pass "regulatory measures pertaining: to intoxicating liquor which are more stringent than the provisions of the control act and may even prohibit ttye sale of in toxicating liquor within , Sues municipalities. " Tba control act recognize this and provides that no liquor Store shall be. establish ed In any municipality In whicb there issTlocal prohibitory law in effect?' ' JHgb Court Beady to ; I '- Hear Case Immediately hi Immediate appeal to the su preme court of the decision is ex pected from the City of XUamatb Falls; plaintiff in the action The decision of Judge Lewelling sus tained a "demurre4e8the eouth era Oregon city's complaint which sought an injunction against the state liquor commission, prevent ing It from operating under the Knox-aec The supreme court Is Turn to page 7, col. S) Store Site Here : Not Known Until NexiWeekWord PORTLAND, Ore.; Jan. S4F) -Selection of sites for the Eugene and Salem state liquor stores probably trill not be made before next week, Administrator George L. Sam mis said tonight. Personnel for the state 'stores may be all announced , at one time, Sammls said, but - probably aot for another week. Another Portland r store . site was selected tonight, between J7th and 18 th streets on Saady boulevard In east Portland. A west side location announced this morning will be on 11th and Ai des streets. . i i A number of locations for Eu gene ana saiem stores were sub mitted and recommendations have been ! before the administrator. but be has had no time to act on them yet, he said. LLiEARN what marriage taught a modern girl in this great new novel this woman 4 : BY, ALLENS CORLISS V' Startingf Today on j , . Page 10 ' - 7 Picture above shows kiddies gathered around birthday cake at Warm Springs, Ga. To them President . Roosevelt is philanthropist and friend whose' efforts have done much to provide proper treatment ' for victims of childhood's most dreaded disease. Local plans for the birthday ball next Tuesday will be completed aa meeting of the local committee tonight. debate scne ON GOLD MEASURE Expansion of Currency on New Gold Base Sought by I Westerners WASHINGTON. Jan. z4.-flPV- Emerging from a day of scathing denunciation in which senate con servative: of both parties joined. the Roosevelt monetary bill to-r night found Itself threatened with the addition of a provision, back ed by western independents to make some expansion of the cur rency a certainty. Administration leaders, assured of the -bill's passage in a form otherwise acceptable to the White House, immediately began maneu vering to meet the offensive of the outright Inflationists and counting upon republican -conservative assistance. ! were confi dent- of-holding -their' ground, e. Robinson Keeps In Close " " Tonch With White House The . banking committee, dom inated by critics of the bill, add ed amendments, placing the sub luxation fund in the hands of a board of five and putting a limi tation of three years upon the op erators of the fund and upon the president's authority to revalue the American monetary unit, Rob inson after a White House visit, today decreed that the board Idea should be eliminated but said he would not oppose the time limita tion. . , ' - Glass declared the measure was "dishonest," would result in the dollar's going to its post civil war value, "when we called them shin plasters," opposed seizing the gold of the reserve banks, and pleaded (Turn to page 9, col. 2) Mill's Profits Up In 1933; Meeting Of Owners Today A net profit of $129,000 was made by the Oregsn Pulp Jb Pa per company here in 1933, a pre liminary report made in Portland this week revealed. A more de tailed account will be given stock holders at the annual meeting of the company here this morning at 10 o'clock at the company's plant on South Commercial street. Di rectors will be chosen for 1934. In 1932 the mill lost $187,000 after depreciation reserves were set. up.- Depreciation reserves of $210,000 Were set Up in 1933, earnings being figured after that deduction. Better prices the last six months of the year and a greater volume of orders account ed tor the increase. 1 Dynamite Sticks Mailed Re-employment Men Here Relief and re-employment offi cials were put on their guard and postal officials Into ai Investiga tion yesterday when mailed pack ages were received at ! the re-employment office, 250 Court street. and the CWA office, 248 North Commercial, containing sticks of dynamite, - The first package was deliver ed by postman to the re-employment office and there! opened by Manager E, T. Barnes. Upon dis covering the menacing contents of the package, one dynamite stick, Barnes notified postal officials and warned CWA office employes. Meanwhile a package, address ed to R. C. Churchill, CWA com plaint clerk,- was received at his office. As Churchill was not there, the package was turned oyer to Administrator Glenn C Niles who at about the same time received the warning by telephone from Mr. Barnes. . - : . 8 Sticks Dynamite, ' " Salt Pork in Package f The second package was return ed to the postoffice and upon be ing opened found to contain three sticks of dynamite and a piece of Washington Spotlight (By the Associated Press) Senate independents threaten ed amendment of the Roosevelt monetary bill to compel expansion of the currency. ! ' The house voted $284,747,000 for naval expenses, including J 3 3,6 19,0 00 for ship-building. Secretary Morgenthau opened federal mints to Russian gold. Word I came from the White House that President Roosevelt expects the present congress to regulate stock exchanges. The president prepared to ask congress; for foil guarantee of home loan bonds and . financing for home modernization. The senate': voted $10,000 to continue; and broaden its ocean and. air mail invtesiigatlQiu-... . , Hugh 8. Johnson and senator Nye agreed upon creation of a citizens' committee to hear NRA complaints from small businesses. The public works administra tion allotted $2,287,000 for pro jects in 17 states. Expenses of the postoffice and treasury departments for the next fiscal year were placed at $820,- 693,009 in a bill before the house. president Roosevelt signed a bul permitting sale of liquor by the drink in licensed restaurants. hotels and clubs of the capital. 51 Millions Going Out at Refunds; Large Ones Less WASHINGTON, Jan. 24.(ff- Congress was told today that the treasury 1 made tax refunds of $61,484,000 last year. Included . in the hundreds of closely typed pages sent to the house- expenditures committee were the names of many promln ent in American social and polit ical life. The treasury Is required to report all cases of more than $500 In which it has found tax payers have been overcharged. The refunds have been de creasing in recent years, and last year, was no exception. Instead of there being several returns of a million dollars, one of $774,251 to the Northern Pacific Railway company lot St. Paul topped them alL . . - the salt pork such as Is being dis tributed to families on the relief. Neither i package, according to Assistant ! Postmaster Arthur - E. Gibbard, contained fuses, caps or other devices to set off the ex plosive. Both were wrapped In butcher paper similar, to that used at the relief office in packaging the salt pork provided by the fed eral government; v;vj 1... :i . Preliminary , investigation re vealed that the packages had been picked up in Salem through the regular delivery system, Gibbard said,' but he did not indicate whe ther or not he knew exactly where they had come Into the hands of the postal service.' He said a' pos tal inspector would be here prob ably today to begin an Investiga tion : of : the affair. . The contents of the packages were being kept In the basement of the postoffice building. . . i Because neither package was fitted up to explode the dynamite, the officials to whom they were sent were Inclined, to believe the senders intention was to 1 lighten- Th( them into meeting complaints re 4 Turn to page 9, coL !) v FIE USE OF LAND FOR DOCK IS ASKED City Father Hear Value of River Transport; Matter Up to Council . A . recommendation probably will be made at the next city council meeting, February 5, as to whether or not the Salem Na vigation company should be per mittsd to continue use of the city property on which its dock stands without payment of rent. This statement was maue by members of the council utilities commit tee last night at the city ha I af ter they had listened to the boat company's plea of inability to pay rent and to businessmen's claims regarding value of river freight service here. Alderman H. H. Vandevort, who recent'y demanded to know why the boarc8mpifny"wus aHow j ed not to pay the city rent, de clared that "well suggest a rent figure to the council if I have anything to say about It" Truck Competition Cald To Force Low Rates A. S. Johnson, manager of the navigation company, which now gives river freight service three days each way weekly between Salem and Portland, as well as trucking service, told the com mitteemen the company because of truck competition was forced to cut its rates so low that it was barely breaking even. In re sponse to committee queries he asserted the company could not raise its rates enough to pay the rent and still retain the heavy volume of business necessary in operating steamers. (Turn to page 9, col. S) Holiday For School Kids Here Today More than 6000 Salem boys and girls will be free today, for there is no school. Tomorrow af ternoon they will call at their classrooms for semester report cards and Monday the regular school grind will commence again with the opening of the second semester. Friday all school busses will de liver students from out-of-town districts to their schools at 1 p. m., and call for them at the regular closing hour, giving op portunity for changing of pro grams during the afternoon. At Salem high school semester grade reports will be available at 1:30 o'clock, at other public schools cards will be given out at 1. p. m. Leslie Junior high stu dents will hold an assembly which is scheduled to convene at 1 or shortly before the hour. - All Salem schools with the pos sible exception of Leslie, will op mite on a full time basis Monday. Short class - periods throughout the morning only will probably be the order at Leslie it was said yesterday at the office of Super intendent George W. Hug. $1500 Damage Won From F.N. Woodry General damage of $1000 and punitive damages of $500 were won by Esther Sheridan in cir cuit court here Wednesday after noon against F, N. Woodry. Guy D. : Buntin was foreman : of the Jury which received the ease for consideration shortly after noon. Plaintiff sued on charges of al leged assault and battery, n - " ASKS THIEVES TO QUIT An aged woman, sick and alone, residing on the west side between Grove and Pine streets, asks The Statesman to broadcast her appeal for cessation of thievery activities at her home. She says for the past two weeks several stealthy ' trips have been made to take boards and shingle. from -her-Place, School Superintendent Says Group Gave Word After Secret Meeting Contract Expires Sept. 1 ; Business- Men Rally to r Urge His Retention ' Report was current yesterday that the, Salem school board fol lowing a secret meeting had ad vised - Superintendent George W. Hug that it would not renew the contract with him which termin ates September 1. Superintendent Hug confirmed the report to the effect that a member of the board had told kirn that the board had made such a determination. Members of the school board de clined to talk tor publication, re ferring Inquirers to the superin tendent. Friends of the superin tendent, who Is now serving his 14th year as head of tne system oi schools, have become active al ready in seeking his retention. Mr. Hug underwent a major operation In the fall and has been recuper ating slowly for the past few months. "Mandate of People, Given as Reason for Move "The mandate of the people". a. i .a was the oniy explanation aa- vanced, said Mr. Hug, who said that individual members of the board had all along assured him that they were satisfied with his work and told him not to worry so far as his position here was con cerned. At the last election two new members went on the board, Walter Minier and E. A. Brad- field. There has been a group ac tive In school elections for some years with the avowed purpose of (Turn to page 7, coi. y The Willamette river clung tenaciously above the 16 foot level last night but its crest for the present freshet was beuevea Mo have passed yesterday morn Insr when it .reached 15.8 feet. At midnight the- river stood at the 16.2 foot level, 0.4 foot be low its- stage at noon and 4 p. m Below Salem hundreds of acres of land were flooded by the mud dy stream but apparently no marked damage was done. Cap tain David Smith reported yester day when he brought the steamer Northwestern to the Salem Navi gation company dock here. He said he expected the locks at Ore gon City to be temporarily ciosea because of the hish water dui only for a few hours. Attention of fanners was div erted more toward fears of frees lng weather but last night was warmer than the previous night. At midnight the thermometer read 40 degrees, a rise of one point from a few hours earlier. The weather bureau continued to predict rain for today. OAK POINT, Jan. 24. Water has flooded the river bottom dis tricts, so pupils from Horst's hop yard and people living on the Mc Laughlin ranch are shut in. This is the second time this winter that water has overflowed these hop yards. It is at a standstill late today with hopes that it will recede. ! A local NRA code authority tor the grocery business will be or ganized here in the near future, Theodore Roth, president of the Willamette Grocery company, an nounced yesterday. Roth recently was named to represent inde pendent wholesalers on- the food and grocery distributors' code authority tor Oregon and has been elected secretary-treasurer of that authority. He also is vice president of the Oregon Whole sale Grocers' association. The Salem authority will be composed of one representative each chosen ' by the wholesalers, independent . retailed, voluntary chains and chains. - Other members -of the state authority, Roth has been" aoti tied, are E. Frank Douglas of Portland, president; representinr the Independent retailers; Henry Meyer of Portland," chain stores; H. E. Carr, retail-owned whole sale houses, and 8. E. Durkhelm- er, voluntary chain groups, f -ri ? BANK HEAD NAMED - SAN FRANCISCO, Jan.. 24P) -A p p o 1 n t m e-n-t of George H. Breenwood Of Seattle as director of the Seattle branch of the Fed eral Reserve bank of San Fran cisco was announced at the bank today. He will fill the unexpired term of M. A. Arnold, who resign ed to become a member of the federal advisory council, -t RIVER DM BIT; . : iiMY.va turn TO RE FORMED SOOII One 30-Hour Shift by End of Week; Dallas Mill Setup; ' Appeal Indefinite -; v Judge McNary Upholds turn- ber ;Code Curtailment; paltes Must Do Part - PORTLAND. Jan. 2 4. --Mar ried men and older employes will oe given preference Tor positions on the sinrle shift allotted tb Willamette Valley lumber mill at Dallas, Superintendent George T. Gerlinger said tonight following the federal court ruling here today upholding the NRA lumber code autnority order to restrict future reduction. He estimated about 185 would be laid off. Reorganization will be complet ed this week and operation con tinued on a one-shift basis, he said. No penalty will be Imposed on the mill for the extra produc tion allotment under the tempor ary restraining order of last No vember. The court today vacated its temporary order denying the code authority the right to inter fere with the mill's operation. Gerlinger Regrets So Many Men Will Be Laid Off Gerlinger said the mill was 'In sympathy with the spirit of the court's decision, and with the code authority in making the original order. Our greatest regret is that so many people will be thrown out of work. We think the court did what it believed best." A conference with the west coast lumber authority officials will be held before decision is made concerning a supreme court appeal, Gerlinger said. At the present time some of the code of ficials are in Washington, D. C. In event of a supreme court ap peal the mill ' would continue to operate on a one-shift basis pend ing outcome of the appeal. "We are hoping tor some com promise to permit re-employment of a number who must be tempor arily laid off,? he said. However, he said thjere was no particular basis for such hope, except the ar guments submitted in the case just completed. PORTLAND, Jan. 24.-(ff)-0B-serving that "the NRA plan, while not perfect, la the most likely to prevent complete disaster to the (Turn to page 7, col. 7) F H FIDS RAISED WASHINGTON, Jan. 24P)- a Dig oversubscription of the treasury's billion dollar financing offering was announced tonight by Secretary Morgenthau. "I am delighted," Morgenthau said, as he told reporters of the result of the government's start on its task of borrowing $10,000, 000,000 before June S0 The secretary said preliminary figures showed $2,500,000,000 in subscriptions from the $500,000, 000 note issue, or five times the offer. The $500,000,000 certifi cate issue fared less well, but subscriptions approximated $1, 000,000,000. Morgenthau explained these fig ures were received by the treas ury up to 4 o'clock. , He ordered the books closed after one day's subscriptions but said offers mailed before midnight would be considered In allotting the secur ities. The note issue pays i per cent interest, will be dated Jan uary 29, and mature March 16, 1935. The certificates bear 1 per cent, will be dated January 29, and mature September 15. FIFIST BINIOII $1,800,000 in Farm Loans Sought in Seven, Counties Applications for loans totaling more than $1,800,000 have been made by Marion and Polk county fanners the past seven months to the National Farm Loan associa tion, according to word from the office of E. K. Piaseekl, secretary treasurer. Since the first of the year, 24 applications. ' represent ing in excess of $100,000 have been received. In a single day re cently, farmers sought $11,809 In loans. ' ' , The association covers seven counties, Polk, Marion, Linn, Lane, Benton, Lincoln and Tarn hill ' and ; receives application for loan! up to $50,600. The average loan sought Is between two and three thousand dollars. ; Applica tions are acted upon by the Fed eral Land bank at Spokane, and money distributed through the Salem . office. About $15,600 a week comes In, going directly to mortgage holders to wipe out debts so farmers may gain a fresh start The mortgage company representative estimated this Mis s Catherine Paul -Boncour, daughter of the former premier of .France, pictured as she ar rived at New York on the S. 8. Champiain for a snort vacation. She will visit friends in this country and Canada. Her father new holds the post of minister of foreign affairs In the French cabinet. T Devers Says Lipman Deal Has PWA Nod; zyz Millions Involved . The $3,500,000 flax growing and processing project which broke , into public view a few weeks ago and since then has been quiescent, is not dead but has excellent chances to become reality, J. M. Devers, recently Dacx irom wasnington, D. c, re vealed here yesterday. -While at the capital Devers had opportuni ty to consult several times with Will. Lipman, who is the sponsor of the big project. Devers said he had beeu assur ed by sources apart from Lip man, first, that the project had received the approval of the legal department of PWA, and second. that pending Its acceptance or re jection, funds for the project had been "earmarked" in PWA. The latter came about through the recommendation of President Roosevelt who has for some time been an ardent supporter of flax development In the Willamette valley. The president is represented as holding the view that growth of flax and making of linen Is a pio neer Held Into which American growers can well progress, there- (Turn to page 9, coL 1) 4 Million Acres Sought by U. S. In Fraud Cases SPOKANE, Wash.. Jan. 24.-MPI -Twelve days of argument by at torneys concluded, Federal Judge J. Stanley Webster today took un der advisement the Northern Pa cific railway land-grant case, in volving hundreds of millions of dollars. The government Beeks to ob tain title to 4,000,000 acres of land, alleging fraud by the rail way in obtaining the grants, and the company seeks return of the land or its money value. - The. hearing here was on ob jections filed by ,- the company and the government to a report by Prank Graves, master in chan cery, appointed by Judge Web ster. Graves was two years In gathering evidence involved in his report." , - - week that his company alone would receive $90,000 from this source in the next three months. First Annual Meeting ;? . Of Association Held The first annual meeting of the association was held in Dallas re cently. Officers were reelected: L. L Burcell, Dallas, president; Fred R. Elliott, Dallas, vice-president f E. K. Piaseekl, secretary treasurer; Burcell, Elliott, H. G. Campbell, Dallas. H, H. Brandt. Independence, and W. ; E. : Wil liams, Alrlie. dlrectorgv -i The secretary's report at that time showed: 321 applications re ceived, from Marion, Polk,, Ben ton and Tamtni counties, repre senting $1,456,313: lit applica tions allowed, representing $622, 050; 29 rejections representing $149,150; 46 referred applica tions, representing 1121,769. -Marlon county farmers number ing 136 - sought loans . totaling $718,600; of which St were al lowed, representing $294,400. (Turn to page 9, eoL 2) . LARGE FLAX OUTLAY HELD I IMM!lfEN Kentucky Mob Takes Negro, ' 20 Years O Sot4oJ Times, Hang Vwrtfivta Tree, Then Run Away - Lynching is First in 1934; . Black Man Accused ef Slugging Coal Miner; I M6 Id ICUIIVC HAZARD. Kj, Jan. 24.-4PV- The body of Rex Scott, 20, negre. shot approximately 40 times, was round hanging from a tree two miles south of Vicco tonight about two hours after he was- re moved .by a mob from the Perry county Jail. The body was found by a posse led by Sheriff Filmore Mcintosh. Circuit? Judge Sam Ward and Commonwealth's Attorney J. A. Smith. The posse arrived Just in time to see a crowd of several hundred people scatter and rua .to nearby coal camps. Three men were arrested, bat their names were not learned here. Officers jiho phoned, here said the three were stragglers who were captured after the main body of lynchers had scattered. It Was the nation's first lynch ing in 1934. The mob of 30 to 40 men, arm ed and masked, forcibly removed Scott, from the Jail. . The removal occurred while about 300 spectators were gath ered about the Jail. Spectators Follow Mob From Town, to Town Many of the spectators -.entered . . their automobiles and followed the men who had the prisoner as they drove away from town. About 10O shots were fired late the air by the Jail raiders aa they left the city limits. The negro was charged with slugging Alex Johnson, ceal miner, on a side street here Sat urday night Johnson is in a erlt- ical condition in a hospital, aerer. having regained consciousness. The men who entered the Jalt forced. Deputy Jailer W. C Knuckles to surrender, his keys. Sheriff Gilmore Mcintosh, who said he believed the men intended to hang the negro, hastily organ ized a posse of 50 men and starv ed in pursuit. , r No Advance Rumors Of Lynch Attempt , The jail raid occurred about 7:45 o'clock. Sheriff Mcintosh and Jailer Troy P. Comb said there had been no advance ru mors of an attempted lynching. Jailer Combs said he was threatened with death if he did' not surrender hU keys, but tun (Turn to page 9, coL 2) World News at a Glance Bv the Associated Press Domestic:' WASHINGTON Senate is de pendents threaten to place cur ' rency ? expansion pro vision fa. monetary MIL j NEW TOR K Commissioner takes narcotics, guns in welfare island prison raid. WASHINGTON House ap proves $284,747,060 for navy; bill includes $33,619,000 for ship building. NEW ORLEANS Senator Long's mayoral candidate says he will not force runoff primary. WASHINGTON Roosevelt cs pects congress to regulate stock exchanges. - ; OKLAHOMA CITY--Govemr Murray, takes steps to oust stafe supreme court chief Justico sasd reorganize tribunal. ST. ; PAUL Attempts by in ductors of bank president to com municate with family disclosed, : WASHINGTON CongressSenal survey of national defense sys tem proposed. j Foreign: ' PARIS Naval minister advo cates French fleet stronger than those of Germany 'and, Italy to gether. ;. 1 ATHENS Supreme state ceea eU and minister of interior agree Samuel Insull must leave country before February,. . ' . BERLTN-iReichsbank p f e K dent leaves unexpectedly . resentatives of foreign securities j, holders nrenare protest against , I interest reductions . - , ,.'- -3