The Oregon statesman. (Salem, Or.) 1916-1980, January 25, 1934, Page 1, Image 1

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    V for- -a-
, - ' i ? '' ' ' ;
All SUtesmasr carriers are
: charged for. all papers they
- deliver, Please aotif j the of-
t flee when changing address.
' Telephone 0101 '. .- : .-
: . 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
.1. . .fc-
Salem, Oregon, Thursday Morning, January 25, 1934
No. 261
Presidential Party Next Tuesday, January 30th
Winsome Guest,
War Debt or No L
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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 " .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
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
V' Startingf Today on
j , . Page 10 ' -
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
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
(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
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-
them into meeting complaints re
4 Turn to page 9, coL !)
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
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 - "
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
"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
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 ?
-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
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
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
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)
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,
The certificates bear 1 per
cent, will be dated January 29,
and mature September 15.
$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
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
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
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) .
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;
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
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.
proves $284,747,060 for navy;
bill includes $33,619,000 for ship
Long's mayoral candidate says he
will not force runoff primary.
WASHINGTON Roosevelt cs
pects congress to regulate stock
exchanges. - ;
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
' 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 . - , ,.'-