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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 27, 1934)
1 V' ' t, 4 LITTLE MERCHANTS All Statesman carriers are ."charged for all jpapers they deliver. Please LOtlfy the of flce when changing address. Telephone 0101. THE WEATHER Unsettled, probably light rain or mist today and Sua day; Max. Temp. Friday S4, Mia. 85, river 14.8 feet. var table winds. POUNDED 1051 EIGHTY-THIRD YEAR - Salem, Oregon, Saturday Morning, January 27, 1934 No. 263 ' i T - i I - 4 .- 4 t r 4 T n . v UOUflR STORE Staff Also to Be Announced Soon Says McMorran of State Commission Public Cooperation is Asked in Making Control of Oregon Success Today or early next week the location of the Salem liquor store mill be announced and the per sonnel of the store will shortly be made known, George H. Mc Morran, chairman of tbe state li quor commission, Indicated here yesterday as he stopped in the city on his way to Kugene from Portland. He had been in the me tropolis all week working with the commission's administrators in finishing preliminary work to th opening of the first stores in the state. Two downtown stores in Port land will be operating- by Mon day, February 5, McMonan said. Store operations in Eugene and Salem should be under way by the following Saturday, February 10, with other stores in the state open for business a short time thereafter. Control Will Work If Public Assists "The Knox liquor control act will work and the bootlegger and racketeer will be virtually elimin ated In the state, but only with the cooperation of the sensible, stable, good citizens of Oregon," McMorran commented. "The com mission. Its administrators and the law itself are not sufficient. We need full public cooperation. We may not expect that radical dries or radical wets will be in full accord but I think they are only a small minority.'- What we need is the help of the great middle-of-the-road group which is sin cerely interested that this new law adopted in the special session be fully tried out." V A, Mr. McMorran said th cominis slon had labored unceasingly since its appointment to get the state-owned system of liquor dis pensing well set up. He said po litical preferment had not entered into the commission's delibera tions. "Had I known the work would be so arduous when I took the ap pointment I am sure I would have declined the job," McMorran com mented. "However I am hopeful now that those most arduous days for the commission are behind. The three commissioners have la bored without any friction what ever; I count the other commis sioners among my very best friends. No Big Investment In Equipment, Says McMorran denied reports that the commission had invested 130, OuO In equipment. He said fixed equipment had been purchased for only two stores and these are In Portland. In one store fixtures movable to a new location have been purchased. In the other fix. tures built into the room are be ing constructed. The commission Is going to Investigate costs care fully to see whether movable or fixed equipment should be pur chased for Its . other stores. McMorran also denied press re ports that store managers were (Turn to page 2, col. 1) SEATTLE. Jan. 26-ttPV-The federal grand Jury today indicted eight men on mail fraud charges In connection with sale of more than 41,000 worth of stock In an Oregon gold mine to western Washington investors. The charges named activities of Maxwell Gates & Company Droit rara firm, and the Western States Gold Properties corpora tion, whose mine is near uoia nm. Ore. ThoHa indicted were J. L. Bodge, president of the mining mm nan v and Maxwell Gates, head of the brokerage firm, Mandel Michaelson. . Robert M. Brown, Henry L. Levlne, Benjamin Hen Sirmnnd Adelman and Ben Jamin Ross. Three appeared In court' today, and others are in gpokane and Lot Angeles, their ftnrn irra - K&id. The government charged the v.ntnn rm firm took mooer from cllenti who sought to buy listed stocks, and kept the cash unui they could persuade the clients to buy stock in the gold mine, and that other clients were advised that a gold mine deal was 1 n nrosnect which would return them $2 for every SI lnrested, and the grand Jurors held such statements to be fraudulent,, THOUSAND GRADUATED PORTLAND, Ore,, Jan. 2 More than 1000 boys and girls re ceived diplomas in graduation ex ercises here tonight at eight of the nine Portland high schools. Lin coln high school held commence ment enercises last night FIGHT i mm;! oneoNi Coop erative Polk Has Tough Time; L and Isn't Product we State Officials Attention Called as Report of Disturbance Made; Group of 27 Tries to "Eke Out Existence," Stated INVESTIGATION by state officials Friday, of a cooperative colony of 27 persons in the cut-off forest lands in Polk county near Black Rock revealed this incorporated group as the "last effort to organize for an existence." The group banded together last October in an attempt to "eke out an existence from the land." Disturbances in the colony came O to the attention of the Btate labor commissioner the past week when it was learned one family was to be ousted, and that there was dis satisfaction in the ranks. This was the first time the existence of the colony was brought out since in corporation papers were filed for them as the "Co-op Colony." Parties investigating the sit uation reported there was appar ently nothing the state could do about the matter, except to aid the people when they should de sire. The matter, however was taken under advisement. Those inspecting Friday were Charles Goodwin, deputy corporation (Turn to page 2, col. 7) ELECTSOFFICERS Butterfield Chairman; Debt Relief Problems Will Be Taken Up Soon The Marion county mediation committee authorized by the re cent session of the legislature. meeting yesterday afternoon with G. W. Potts, district committee man under the mediation bill, named as chairman Howard P. Butterfield and as secretary Ray J. Glatt, both of Woodburn. The committee, formed to help mortgagors and mortgagees with their " difficulties, will entertain applications for aid In the near future. A meeting of committees of several counties is set for Cor vatlis Tuesday, when a representa tive of the Federal Land bank will furnish further explanation of the mode of operation. Until the matter of a Marion county agent is settled definitely, Max Gehlhar of the department of agriculture will take care of ap plications for relief. Potts said. Farmers in distress with their mortgages may file information on blanks furnished for the pur pose with Gehlhar's office. These forms will go before the mediation board, which -will undertake to bring mortgagor and mortgagee into agreement. Besides Butterfield and Glatt, M. G. Gunderson, Silverton, W. A. Heater. Sublimity, and Ernest Werner, Silverton, are on the com mittee. Litle action will probably be taken until after the Corvallis meeting, when members will learn more about their duties. Two or three farmers were heard at the meeting here, but nothing was to be done Just yet. Body of Indian Slain 30 Years Ago Discovered HILLSBORO. Jan. 26.-CF)-Ap- parently the victim of a murder of 30 or 40 years ago, the skeleton of an Indian was unearthed by CWA road workers near Glencoe today. The skull bad been frac tured, and a long knife was beside the head. The body bad been buried in a circular position and was covered by earth to the depth of about 18 inches. The grave was a few feet within an old fence line on an old donation claim. Coroner Fred Sewell said the Indian probably was 50 years old when be met death. MEDIATION BOARD Milk War Threatened Over Slate Commissioner's Rules Indications of a looming milk war protesting the recent orders of the new milk commission es tablishing prices for which milk may be sold In Portland were seen here Friday in communica tions addressed to the governor and to the milk commission of which E. G. Harlan is chairman, from, a score of dairymen in and near Forest Grove. Although the executive office was silent on the matter, the con tents of the communications were divulged and It was understood the governor referred the matter to Max Gehlhar, director of agri culture, for Investigation. The Forest Grove group was declared to have a strong organization. Some state officials approach ed upon the issue, said they be lieved the milk commission would either have to retract from its basic 9 cents a -quart ruling for the Portland district, or serious consequences would result. They. Colony in The Washington Spotlight . (By Associated Press.) The senate gave Secretary Mor- genthau exclusive control of the 12,000.000,000 stabilization fund soon to be established.. President Roosevelt told the senate air mail committee to go the limit in its investigations. Postmaster General Farley said a good word for senator Hiram Johnson, republican Independent up for reelection this year. The house ways and means committee approved retaliatory taxes against persons and indus tries from countries imposing dis criminatory taxes against Ameri cans. Increased foreign trade in 1933 was reported by the department of commerce. Members of congress said Pres ident Roosevelt was ready for compulsory control of cotton pro duction. Tbe civil works administration barred office-holders and office seekers from its payrolls. Food supplies were ordered rushed to sections of Cuba threat ened with famine. The house took a slap at a pub lic works project undertaken at Mrs. Roosevelt's suggestion. The president sent stock ex change reports to congress, named Jefferson Caffery ambassador to Cuba, considered making a birth day address Tuesday, and "thor oughly satisfied" patronage com plaints. Women Injured Seriously Found After Two Hours PORTLAND, Ore., Jan. 26.-ff) -Two women, seriously injured. were unnoticed for nearly two hours today before one struggled up a C 0-foot embankment over which their car crashed, and sum moned aid from a passing car. Dr. Gertrude French, about 10, The Dalles, Ore., and Mrs. E. E. Gilman, about 70, Heppner, Ore., were en route to The Dalles when their heavy sedan left the Columbia river highway near Multnomah Falls, somersaulted and crashed on its top. First aid was given at the Waukeena Falls CCC camp and an ambulance took the women to The Dalles.' It was Dr. French, driver of the car, who finally recovered sufficiently to crawl to the rim of the highway. Re-employment Job Here Topic Carl F. Caufield, regional su pervisor for the federal re-employ ment service, has arranged a con ference with the Marion county court for 9 o'clock this morning Since conferring with the court earlier in the week, Caufield has been advised that reemployment offices after CWA work is ended, must be on a E0-50 basis with the local governmental units. The purpose of his conference Is to work out such a plan of support for the Salem office. made no effort to speculate how far the situation may go in the event the commission took no ac tion. "We shall find some means of continuing to market our milk In Portland as we have. done In years." "Take notice that we, as citizens and taxpayers of Oregon, will rebel against any order which in any manner places us under any kind of relationship with the Co-op. These were some of the statements made by this group In bringing to tbe at tentlon the "Injustices of the sew milk orders." This protest was the first to be made against either the milk orders or the new Agricultural codes now Being worked out. The communications were sign ed by George Oppenlander. and further declared that the milk board was Injuring the producers ATura Jo page 2, col. Jl SILVER TIP 01 HHHK Purchase Until 16-to-l Ratio Advocated in Late Amendment is Money Board Plan Killed; Trend of Gold Toward U.S. Starts, Seen WASHINGTON, Jan. 2-rV An effort to put a silver tip on the administration's monetary weapon brought the senate to night to the eve of a vote on the dollar devaluation measure. The endeavor, by Senator Wheeler (D-Mont.) sought to have the government buy silver until it reaches the long debated ratio of sixteen to one with gold. The silver amendment came up in the senate shortly after It had voted down a committee proposal to restrict solely to money the op erations of the ' stabilization fund the bill would set up. A few min utes earlier the five man board that had been demanded to op erate the fund had been rejected. Instead, the secretary of the treasury will direct the fund that will be set up when the senate finally gets around to the busi ness of changing the legislation Into law. Meanwhile, the jagged course of debate went ahead. Bailey (D-N. C.) said the bills would help about paying debts. Reed (R - Penn.) said that the fact that it took two bad pennies instead of one good one to buy an apple wouldn't help much. NEW YORK, Jan. U-UPj- First definite evidence of the real turning of the international gold movement toward the United States, in the effort to stabilize the dollar, came today with re ports in Wall Street of a substan tial shipment of the metal from France. In the meantime, however, the federal reserve selling of dollars and buying of foreign metal was inadequate to counterbalance the heavy demand for the American currency abroad, and it rose to the highest levels in relation to the British pound sterling since November. TO AFRICA. RUMOR ATHENS, Jan. 26.-;P)-Samuel Insull was rumored today to have ordered a hydroplane held ready for a flight, perhaps to Abys sinia. At the Aero-Express and Im perial Airways seaplane hangars at Phaleron, however, it was said no craft was waiting to take the former Chicago utilities operator to a new refuge, but the opinion was expressed he might hop from emergency fields at Porto Rophi- tl, 22 miles from here, or Pefko, 20 miles distant. Meanwhile, Premier Tsaldaris said Insull would be deported February 1 If he does not leave voluntarily by January 31, as or dered by the minister of the in terior and the state council, but added: "If Insull requests a prolonga tion of bis sojourn permit on the grounds of health and If the minister of the interior's doctor finds his health dangerous, the Greek government will prolong the permit until his health ia satisfactory." No other nation has offered to receive Insull, who la wanted in Illinois on charges of larceny, embezzlement, and violation of the bankruptcy laws. Late Sports PORTLAND, Ore., Jan. 26.-(n -In the last 30 seconds of play Llnfield college overcame the lead and defeated Columbia uni versity of Portland, 33 to 32, in a non-conference basketball game here tonight. Neely, Llnfield forward, scored the winning goal and Piskol, Irish guard, missed a free throw which would have sent the game into an overtime period. Brostrum, Wildcat forward, led the scoring with 13 points. Man- ion scored 11 and Rossi 10 points for the Irish. LOS ANGELES, Jan. U.-JPf-Stanford's basketball team held Southern California fairly even tonight until the Indian's star forward, Keith Topping, went out of the game on personal fouls, when the Trojans forged ahead to win 36 to 24. SAN FRANCISCO, Jan. 2 -Ellsworth Vines, lanky Pasa dena star, went Into the lead in his' professional tennis duel with Big Bill Tilden as he de feated the old master here to night fl, 3-6, jrt Srh ran us hop Is Witness to Bremer Kidnap If""!--" Vwi:J 14' James Quinehan, St. Paul, Minn., milkman, who is believed to be the only witness to the kidnap ing of Edward G. Bremer, St. Paul banker. Quinehan was busy on milk deliveries when be noticed another car snoot in front of the banker's and a few momenta later Bremer's car fol lowed the other. PLEDGE KIDNAPERS Bremer Family Promises it Will Not Communicate With Police Force ST. PAUL, Jan. 26 - UP) A promise to the kidnapers of Ed ward G. Bremer, held for S200, 000 ransom, that the family would keep secret all information so the gang might communicate with them, was pledged today by Walter Magee. Magee, wealthy contractor and friend of the missing president and owner of the Commercial 8tate bank was named contact man in the first note received from tbe band within a few hours after Bremer was seized January 17. The family was not cooper ating with authorities he said. "We wish to extend every as surance that we will not commun icate with the authorities," prom ised Magee. "We are interested in obtaining Mr. Bremer's release. That is all. "We are not cooperating with the authorities because we wish to leave open every possible chance for the holders of Mr. Bremer to communicate." The family, meanwhile, await ed word from the gang as to when and how to pay the ransom for freeing the son of Adolph Bremer, principal owner of the Jacob Schmidt Brewing company. Mariah M. Goode Dies at Age 84; Here Many Years Mrs. Mariah M. Goode, resident of the Salem vicinity for many years, died Friday night at her home on route 8 at the age of 84. She is survived by three daugh ters, Mrs. Mary Fuson of Aums ville and Mrs. B. E. Edwards and Mrs. J. E. Long of Salem; five sons, Rev. J. A. Goode of Port land, Rev. J. W. Goode of The Dalles, Albert M. Goode of San Diego, Harry J. Goode of Los An geles and V. A. Goode of Stayton; 15 grandchildren and 11 great grandchildren. Funeral arrangements have not been completed. The body is in charge of the Clough-Barrick company. divani and His Bride Together; Head for China YOKOHAMA, Japan. Jan. 26.- (JP)-A. three weeks enforced sep aration of the celebrated honey moon couple Prince Alexis Mdi vani and his heiress-bride was ended today. They met aboard tbe Japanese liner Tatsuta Maru, on which the former Barbara Hutton arrived from San Francisco. Her husband reached here two days ahead of her, as he sailed from Vancouver, B. C, to dodge a California process server. We have absolutely no plans, the princess told reporters short ly after the reunion, "except that we Intend to go to Pel ping and live there for two months." Indict Of ficial For Conspiracy DES MOINES, la., Jan. 26.-V Lleutenant Governor Nels G. Kra tchel and Carleton D. Beh, Des Moines investment broker, were indicted on charges of conspiracy acainst the government today by a federal grand Jury which spent six days investigating the Iowa public jFOrks. dminww. AMPLE PROTECTION NOOSE IN OHIO J Rimunnnnnnrn i.uvv rnuruDLU Indiana Authorities Agree Gang Should Go Where Hanging Allowed Currency Found on Person Of Leader Identified as East Chicago Loot TUCSON, Ariz., Jan. 26.-P)-Clarence Hoaston, Pima coun ty attorney, said tonight Indi ana authorities, after telephone conversations with him, had agreed to waive their right of procedure against the Dillinger gang members in custody here, in favor of Ohio "where capital punishment is allowed." Pterpont, Clark and Makley are alleged to have stormed the Jail at Lima, O., and liberated Dillinger, daring which Sheriff Jess Sarber was killed. TUCSON, Ariz., Jan. 26.-(P)-Lacking bail aggregating more than 1500,000, John Dillinger and his outlaw gang in jail here were reported tonight to be planning a fight against extradition to the middlewest where an array of murder, robbery and other charges await them. John L. Van Burkirk, attorney for Dillinger and three of his cap tured henchmen, Harry Pierpont, Russell Clark and Charles Mak ley, announced his Intention of asking for habeas corpus writs but failed to file the petition up to closing hours for the court clerk's office. Whether he would initiate the proceedings tomorrow re mained undetermined. He could not be reached tonight. The four men charged with be ing fugitives from justice, came into contact with some direct ac tion as they were arraigned before a justice of the peace. Under the crisp orders of the court tneir bravado gave way to a degree of meekness when the boss gangster attempted to deny his identity and was yanked to bis feet by a police man after refusing to stand. (Turn to page 2, cel. 4) ADMIRAL BTRD'S FLAGSHIP, Bay of Whales, Antarctica, Jan. 26 - (Via Mackay Radio )-UP)- High winds, a strong swell, and the disintegration of the ice near which this craft was berthed be set the second Byrd Antarctic ex pedition today. The dangers drove the flagship from her moorings and kept 43 men marooned at Pressure camp, the temporary supply base 4 miles south of the edge of the Ice. Four other men remained at the Little America base, cut off from their comrades. The problem of establishing the winter camp o f t h e expedition reached a critical point for Ad miral Byrd set February 10 as the deadline for the departure of the flagship. It she Is not un loaded by then she will run the danger of being crushed in the new ice. Her fuel, too, is run ning short. The craft has been drifting within the bay for more than 32 hours unable to find a safe place to anchor. The quartet at Little America have had to break into the stores cached for the winter party. The wind and the swell prevented any attempt to relieve them. CLAIM AAA FLOUTED SEATTLE, Jan. 26. -UP)- Tbe Pacific northwest fruit Industries control committee today cited two Yakima shipping concerns to the secretary of agriculture after in vestigating charges of violation of marketing control regulations un der the AAA. HI Salem High Tops Silverton 3U to 22 in SILVERTON. Jan. 26. (Spe cial) Salem high school's state champions flashed new smooth ness to win handily, 34-22, from the hitherto undefeated Silverton high Silver Foxes here tonight, sinking counters from all angles and leading all the way. The score at half-time was 18-13. Ike Wintermute, forward, led the Salem attack, getting 18 points during the evening, and was" easily the outstanding player on the floor. Orren, guard for the Silver Foxes, also turned- In a good game. The battle, one of the fastest Seen here in years, was exception ally clean, very few fouls being called. Salem converted most of her chances while Silverton, with a slight attack of the jitters, miss ed many set-ups. Schwab, Silverton forward, scored first soon after the open ting whistle, but S&lem soon went iWFICIA torge Engineers' Corps Placed in Command in Several Large Cities Replacing Civilian Heads; Los Angeles Job First Announced; Political Activity is Bothersome to Hopkins but That's Not Reason, He Avers Allotment of $220,000 to Oregon for Materials Listed at Washington; Rooosevelt Delays Request for Added Appropriation of Bilfion Pending Decision on Plan; Would Continue CCC Program WASHINGTON, Jan. 26. (AP) Army officers are to be placed in charge of civil works administration in several of the largest cities of the country. Harry L. Hopkins, the civil works administrator, said today the engineers' corps had become civil works adminis trators in several cities, in some places replacing civilian heads of the administration. In some of the cities, however, he said, there are no civil works administrators. Hopkins tonight announced that Major Donald Connally of the army engineer corps has been appointed civil works administrator for Los Angeles county, California, succeeding Eugene C. English, resigned. Connally will begin work im- pmediately. World News at a Glance (By the Associated Press) Domestic: TUCSON Dillinger gang mem bers to seek freedom under ha beas corpus proceedings. NEW YORK Amalgamated ifotel and Restaurant Workers un ion claiming 30,000 members, launches strike. CHICAGO John Factor Iden tifies Touhy gang members as his abductors. WASHINGTON House com mittee approves retaliatory taxes against industries in countries imposing discriminatory levies on Americans. Foreign: PARIS Minister of justice re signs; premier fights drive to overturn cabinet. BERLIN Poland and Germany sign ten-year non-aggression pact. ATHENS Samuel Insull re ported to have ordered hydro plane ready for flight, perhaps to Abyssinia. Changes in Hog Processing Tax , Are Announced PORTLAND, Jan. 26.-(vP)-J. W. Maloney, collector of internal rev enue, today announced changes of hog processing tax rates for Feb ruary and subsequent months. The changes affect packing houses, slaughter houses, farmers and pro ducers. The February rate will be $1.50 for 100 pounds live weight, and after March 1, 32.25 for each 100 pounds live weight. The new rate "will prevent the accumulation of surplus stocks and depression of the farm price of hogs," a statement from Sec retary of Agriculture H. A. Wal lace said. Tbe rate on hogs for each 100 pounds was 50 cents from Novem ber 3, 1933 to November 30, and one dollar from December 1 to January 31, 1934, Fast Hoop Tilt into the lead and stayed there. the score standing 11-5 at the end of the first quarter and 24-17 at the end of the third. Peters, Salem center, showed His nest form of the season, al though he had to content him self with five points because of close guarding. He hurt his knee hear the end of the game and had to retire. The injury Is not expected to be serious. The game tonight was Salem's eighth straight victory, the cap ital city boys having yet to enter the defeat column. Silverton, with only the one loss against it. faces Newberg at home next. Fri day. A record crowd witnessed the encounter. Salem also won the B team game, 16-10. Quesseth Salem guard, and Eattenberg, Silverton. forward, were high with six points apiece. JtTura to page , oL l In announcing the appointment of Major Connally, Hopkins Bald that other announcements of ap pointments oi army omcers as administrators would be delayed probably until Monday. Hopkins has been having diffi culty in some sections with ef forts of politicians to secure con trol of the civil works adminis tration. He said, however, that politics was not the reason for the decision to use the army of ficers. He added that several cities had asked for them. There also have been some complaints that at a few spots graft had crept into civil works. Hopkins announced he had ap (Turn to page 2, col. 8) inniTo BE WID. BELIEF NEW YORK. Jan. 26PV-Ap- proval by tbe United States su preme court of the essentials of the national recovery program was predicted in an address to night by Charles Edward Clark, dean of the Yale law school. Clark, speaking at the annual meeting of the New York stat Bar association, reviewed the his tory of social legislation and then) said: "Hence it would seem that they; are rash, indeed, who boldly pre phesy the invalidating of th recovery acts. The court has re served for itself tbe formulas by; which they can be sustained or, it must be admitted, by which they can be overthrown. . My guess is that as to a considerable part at least of the recovery pro gram tbe paramount public need will be found to justify their sup port." The association resolved form ally to enlist the cooperation of newspapers, radio and motion pic ture organizations In a campaign against crime. Aimee Sued for Failure to Have Debate Opponent PORTLAND. Ore.. Jan. f -Aimee Semple McPherson, Cali fornia evangelist, was named de fendant in a 910,000 damage ac tion brought In circuit court here today for her alleged failure to provide an opponent In her first scheduled northwest debate against a nationally knows athe ist. Through his attorn evu. lawoa O'Neal of Seattle brought the ac tion. In his complaint O'Neal stated he was forced to refund ticket money for the first debate scheduled, because the atheist was not there. As a result et the initial failure, subsequent de bates failed. Scout Founder Much Improved LONDON, Jan. 26.-(ff)-A bul letin by his physicians said Lord Baden-Powell, 77-year-old foundeij of the Boy Scouts, was resting comfortably late today and "is re covering from' his relapse of yes terday afternoon." Lord Baden-Powell underwent two operations recently and hla condition yesterday was grate. TO REFUND BONDS PORTLAND, Jan. 26Hr-prU. land school district No. 1 wiU Is-, sue $100,000 20-year per eenl refunding bonds, the board of o-,-M rectors Toted todajr.