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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (June 21, 1934)
VACATION TIME Have The Statesman fol low yon while on your va cation; mailed to any ad dress two weeks, only 23 cents. Call 0101. 01 TfjirHE WEATHER Overcast today, higher hn fluidity; Thursday fair, mod crate; Max. Temp. Tuesday 74, ilin. 40, river -2.4 f eet northerly wind, clear. . FOUMDEP 1651 EIGHTY-FOURTH YEAR Salem, Oregon, Thursday Morning, Jane 21, 1934 No. 74 A. 5 TATE WARNED IT 1ST SHARE IN RELIEF-TASK- Hopkins Wires That Oregon is Expected to Defray Its Share of Cost Liquor Receipts Intended for That Purpose Far From Sufficient By SHELDON F. SACKETT The state of Oregon yesterday was squarely up against the prob lem it faced last tall and never rolved the problem of how to se cure funds to satisfy the federal relief administration that this state was doing its limit in hand ling the problem of relief in Ore gon. The challenge came in the form of a telegram from Harry L. Hop kins, relief administrator, to Gov ernor Meier. The message read: "I wish at this time to make it perfectly clear that this adminis tration does not feel that it should carry the entire cost of unemploy ment relief for state of Oregon and I must insist that satisfactory arrangements to this administra tion must be worked out imme diately whereby state of Oregon will defray its fair share of cost of unemployment relief in Ore gon. I am prepared to continue present arrangements for a rea sonable time until you can have opportunity to work out these ar rangements but in no case do I feel that this should be longer than August 1 ot this year." Withdrawal Warning Issued Last Fall Threat of federal government retirement from the relief field was made in Oregon last fall but the actual withdrawal never ma terialized. Governor Meier at that time assembled a statewide com mittee to recommend how to meet the problem. The committee esti mated the sum to be raised an nually in Oregon from $3,000,000 to $15,000,000. At the second special cession of the legislature $3,000,000 for re lief was appropriated out of the first net receipts from liquor taxes and sales but to date only $44,000 of this has been forwarded to the state relief committee and none of this has been used. Federal government relief ex penditures in Oregon since CWA was completed have run from $600,000 to $800,000 a month and relief officials said yesterday that there was no apparent letup in de mand. The federal relief agency has suggested that one-third of the moneys spent here each month be provided by the state. Oregon has no direct arrange ment with the federal government for relief funds, the governor's of fice declared yesterday. Each month requisition is sent to re lief headquarters at Washington and the request for funds is hon ored. Relief officials In Oregon de clare that unemployment is con tinuing and that this fall and win ter heavy demands will be made on relief funds to continue to aid needy families. While SERA work is being car ried on, relief officials say this is not much more expensive than di rect relief since minimum living budgets of $24 to $36 family are set and these budgets are provid ed for each month with work In that amount. Over Five Millions Provided Last Year Figures available at the state house show that the federal gov ernment provided the large sum of $5,196,000 for relief in Oregon In the period ending November 10, 1933. Since that time CWA expenditures" in Oregon have run to almost $5,000,000 while ex penditures for direct relief dur ing and after the period of CWA have ran to almost as much. The state's contribution to re lief throughout the depression has been virtually nothing. From Jan uary 1, 1933, to October 31, 1983, (Turn to page 2, col. 1) GATES REELECTED El ASTORIA, Ore., June 20.-(P)-Re-elected department command er, H. V. Gates of Hillsboro re mained In command as the Grand Army of the Republic continued Its annual convention here to night Other officers named Included Joseph Ridge of Portland, senior vice-commander; George Knier lem of Portland, Junior vice-com-taander; George Prentiss of Port land, chaplain; and J. W. Jones of Portland, medical director. . Immediate action was not taken on Albany's Invitation that the 1936 convention be held there. The annual "campfire," warm In f ellowffhip, was held tonight by the Union veterans and all affil iated groups. Colonel Martin made the principal address. Installation of officers and routine business will mark the i closing session tomorrow. 1 I HEAD New Dear Republican Arises . as Potential Leader of Party V-'AiU ill t State capitol, Albany j jX;' , J? W. Kingsland Macy, whose forbears sailed the Nantucket waters In whaling ships and who, a Harvard graduate, has risen to become New York state republican chairman, is typical of the "young" republicans who dare to criticize past leadership. Because of his insistence on political ideals he is. looked to as one of the strong hopes of republicanism in the east for reunion with the progressives of the west. MNP LEAGUE REVISES ITS MS Half Million Bond Sale Favored; Arbitration Parley Date Set is While city officials were pre paring to confer with E. C. El liott, Oregon - Washington Water Service company president, June 25 relative to agreeing on arbitra tion on the price of the company's water plant, the Salem Public Ownership league last night re vised its advices to the council by passing a resolution asking that $500,000 worth of water bonds be advertised for sale immediately. Originally the league had urged the council to sell $1,000,000 in water bonds. Proceeds of sale of bonds in the latest" suggestion would be used for pipeline construction from the Little North Fork, Santiam river, (Turn to page 2, col. 5) Jacques Gershkovitch of Port land has been re-engaged as con ductor of . the Philharmonic or chestra for the coming year. The board of directors at a meeting last week voted in favor of em ploying him for his third year; and Mr. Gershkovitch came to Salem yesterday and signed the contract covering the engage ment. Three concerts are planned for the season of 1934-1935. Orches tra practice will begin about Oc tober 1 and will close with the final concert about April 1. This will be the third season for Mr. Gershkovitch in Salem, but he has been conductor of the Portland Junior Symphony or chestra for many years. "I have already selected the material for our first concert in the fall" said the director yester day. "Our first program will con sist of lighter selections which I believe will prove very popular." own Call for Independents to Meet Here Monday Issued O5 r- Formal call for a state-wide as- , offices to be filled at the general sembly to be held in the hall of representatives in the statehouse here Monday at 10:30 a. m., to nominate an independent candi date for governor at the general election in November, was issued Wednesday. The call was signed by Li. H. McBee, Dallas; Cecile Wlegand and Warren Gray, Sa lem; George Hessler, Dayton, and J. L. Steinback, Tillamook. Mc Bee Is a prominent member of the Farmers union. The invitations, which entitle the recipients to voting privileges on the floor of the assembly, were placed in the mails Wednesday night. Sponsors of the assembly said approximately 300 delegates would attend and that virtually every section of the state would be represented. The activities of the assembly will he limited to the selection of an Independent candidate for governor and other Kingtland Macy FIVE ARRESTED 1 Alleged Gang Rounded Up by Police; Two Sentenced in Circuit Court With the arrest ot five men and youths here Monday and yester day, state and city police believed they had blocked a wholesale forg ery scheme before it had more than got off to a good start. While all five were said to have con fessed, one pleaded not guilty. Two were sentenced to the peni tentiary and cases of the other two will be disposed of today, i was expected. The five arrested were Will A. Bartlett, James "Jimmle" Price, 21; Alfred Marion Ambrose, 25, an ex-convict; Charles Edward Cochran, 19, and Lloyd "Snake" Wright, 16, on parole from the state training school. Bartlett yesterday waived in dictment and trial and pleaded guilty to issuing a forged instru ment when he appeared before Judge L. H. McMahan. He was sentenced to serve one year in the state penitentiary. He was held to have signed the name of L. M. Purvine to a check for $5.40 drawn on a local bank. Price pleaded guilty to a charge of forgery and was sentenced to serve 16 months in state prison. (Turn to page 2, col. 4) Last of Parrish Bond Issue Will Be Paid July 1 The final $22,000 payment on the $220,000 five per cent bond issue Sold in 1924 to pay for the Parrish Junior high" school build ing will be made by the Salem school district July 1, It was announced at the school clerk's office yesterday. Payment will be handled through the county treasurer's office with the latter accepting the $22,000 principal and $1100 interest in district warrants of small denominations. This payment will reduce the dis trict's bonded debt to $43,000. election will not be discussed The first action of the assem bly will be the selection of a tem porary chairman. This will be fol lowed by the election of perman ent officers and the appointment of several committees. Morton Tompkins of Yamhill county was mentioned prominently here Wed nesday in connection with the of fice of permanent chairman. Tompkins is an active worker In the Oregon state grange and pre viously served several terms in the state legislature. The impor tant committees will Include those on credentials, rules and resolu tions. Who will give the keynote address of the assembly had not been determined tonight, members of the committee asserted. Reports current Wednesday In dicated that Peter Zimmerman, state senator from Yamhill coun (Turn to page 2, coL 1) r CHARGES OAKLAND BANK BANDIT HANDED QUICK JUSTICE Enters Prison Here Within 9 Hours After Holdup for 20-Year Term Assistant Cashier Pursues Robber and Forces Him to Abandon Auto ROSEBURG, -Ore., June 20.-(JP) -Just 4 hours after he walked Into the E. G. Young & Co. bank at Oakland, Ore., flourishing a pistol, today, Stanley Rayson, about 25, was on his way to begin serving a 20-year sentence in the Oregon penitentiary at Salem. Rayson surrendered to a posse that surrounded him at the south approach of Rice hill, six miles north of Oakland on the Pacific highway, two hours after the hold up, in which he obtained $1881 in currency. All the loot was re covered. He was brought to Roseburg and sentenced by Circuit Judge B. L. Eddy after pleading guiltyi Rayson fainted as sentence was pronounced. Rayson walked into the Oak land bank at noon and held up Earl Garrison, assistant cashier, who was in the cashier's cage. He forced Garrison to lie on the floor and bound him with rope. Just as the bandit was leaving, T. B. Gar rison, cashier of the bank, came into the bank room from a wash room at the rear. He, too, was forced to lie on the floor and was bound with a rope. Rayson then ran to the street and climbed into a stolen car, which he had left with the motor running. Earl Garrison freed him self almost immediately and fired three shots at the fleeing Rayson, none of which took effect. Garri son then ran into the highway and nnmmHYtAoeTaA o naoufner pop w I f Vi which he chased Rayson to Rice mil, where the fugitive abandoned his car and ran into a thicket. Other Oakland residents arrived a few minutes later and surrounded the fugitive, who surrendered without a battle when possemen (Turn to page 2, col. 5) WASHINGTON, June 20-(JP)-Draetically curtailing production, the lumber code authority today limited output of the lumbering industry for the third quarter of 1934 to 3,845,000,000 board feet, a reduction of 705,000,000 feet or 15.5 per cent below the allotments for the current quar ter. The allocation of quotas was as follows: Softwoods: Cypress division 35,000000 feet; northeastern division 72,000,000; Appalachian softwood group 16,000,000; northern hemlock division 64, 000,000; northern pine division 32,000,000; Redwood division 88,000,000; southern pine divi sion 1,100,000,000; west coast division 633,00,000; Tillamook burn area 40,000,000. The 40,000,000 feet allocation to the Tillamook burn area was given in an effort to salvage a portion of the great Douglas fir stand which was killed by fire in Oregon last summer. The log quota for the west coast logging and lumber division was fixed at 1,119,000,000 feet for all purposes. f LEADERS SELECTED The American Legion July 4 celebration committee last night named a committee to conduct tne children's sports program which will be conducted following the morning flag raising and address by General U. G. McAlexander. Committeemen are H. V. Collins, Leon Brown, P. D. Quisenberry, Leslie Wadsworth, Walter Zosel, Dr. George Vehrs, R. R. Board- man, Harry W. Scott, josepn Pound. R. S. Keene, Clifford Par ker. Gilbert Ward, Phil Bell and Jack Nash. The sports program will con sist of a briquette rolling race, two sack races, a barrel race, shoe race and free-for-all greased pig chasing contest, three bicycle races, four foot races ana rour stunt races. Wadsworth, Scott, Quisenberry and Parker were delegated to col lect the prizes. Macon Back at Sunnyvale Base SUNNYVALE, Calif., June 20- (ffj-The United States navy diri gible Macon moored at its base here at 7:20 o'clock tonight at ter a training cruise over north' era California and Oregon. LUMBER CUT QUOTA REDUCT ON DRASTIC CELEBRATION PLAN Holiday Boat Wrecked and Three Killed HAUGESUND, Norway, June 20 -(fl-Three women lost their lives today when the 14,000 -ton Ger man liner Dresden, carrying 1, 000 nazi holiday passengers, struck a rock in a fjord near here. The bodies were brought to Stavanger aboard the rescue ves sel King Harald wVfch took off 700 of the Dresden's passengers after racing to the scene in re sponse to SOS calls. Fears were expressed that there may be others missing, but noth ing definite could be learned un til lists of passengers and crew have been checked. With a gaping hole in her port bow, the Dresden was beached af ter the crash in a small bay on Karmoey Island, where the other passengers and crew were taken off. Some of those rescued said two lifeboats capsized, one by break age of her lowering gear and the other by coming tob near the ves sel's screw. F No Resolutions at Turner Meeting; State Bank Plan Emphasized Marion county Pomona grang ers, meeting yesterday at Tur ner, gave no attention to political matters as such and no mention of the move for an Independent candidate for governor was made in the day's sessions. Reports from the state grange conven tion just closed at Roseburg and discussions of the state banking movement which the grange is sponsoring occupied most of the day. The next Pomona meeting will be held at Ankeny in Octo ber. Report was made at yester day's meeting that the coopera tive gasoline movement for dirt farmers has been assured and that Idaho, Washington and Ore gon will unite for this venture. The grange is sponsoring the co operative for assistance to farm ers, whether grange members or not. Full details of the applica tion in this section have not been announced. Unusual for a Pomona grange session was the fact that no re solutions were reported during the day. Ray Gill, state grange master, was present to report upon the state grange session and progress of the state bank petitions. He emphasized that the petition movement must continue strong. Peter Zimmerman of Yamhill county and George Palmiter, members with Gill of the state executive committee, also spoke. Dr. Albert Slaughter, Portland, former master of Salem grange, spoke at some length upon co operation. J. O. Farr of Ankeny grange is master of Pomona and Mrs. An na Hadley of Silverton Hills is secretary. Pomona yesterday ap pointed Mrs. W. S. Krenz of Union Hills grange as corres pondent. IN TALK BY F. H. NEW HAVEN, Conn., June 20. -(") - President Roosevelt struck back today botn at critics oi con gress and of the "brain trust ana told his newly adopted alumni of Yale university that the use or brains in government will be con tinued. "After all." said the president, we are. whether we like it or not, living in a democracy. I like it. We are going to continue to live in a democracy." The graduates of Yale, who had heard some light reference to congress in the course of the com mencement exercises at which Mr. Roosevelt was given an hon orary degree ot doctor of law. applauded the presidential declar ation. CongTess, he said, represents a better cross section of opinion than the viewpoint of any single group, educated or otherwise. "While there has been a cer tain amount of comment about the use of brains in the national rnvumment." he remarked. it seems to be a pretty good prac tice a practice which will con tinue." Late Sports LOS ANGELES, June 20.-)- Seattle and Los Angeles battled for-16 Innings and until nearly midnight tonight before the An gels punched across the winning run to take tba game 4 to 3. The contest started as a pitch ers duel between Howard Crag' head and Fay Thomas. No runs were scored until the sixth when Lahman beat out a bunt. Seattle 3 IS Los Angeles .4 6 Craghead, Radonits and Bottar- inl: Thomas. Henshaw ana u CampbelL Hi HEARS D I FfllJ HITS BRAINS DEFENDED UNLOAD TANKER OF With 150 Armed Police on Job, Strikers Make No Move to Prevent Crowd Seeks to Intimidate Special Police Recruits but is Dispersed PORTLAND, Ore., June 20.-(R) -Under a guard of 150 police reg ulars, the motor tanker Lio of the General Petroleum company, man ned by a non-union crew, today began unloading a S, 000, 000 gal lon cargo of gasoline at the com pany's dock near here. Small groups of strikers, both longshoremen and sailors, gather ed near the company dock during the morning, but when the tanker arrived at noon, few were pres ent. A picket boat tried to ap proach the tanker as it pulled in, but was driven away by a harbor patrol boat. The picket boat crew shouted warnings to the Lio's crew to leave the ship. The only other activity of the strikers consisted of warning a truck driver that he "had better not leave the plant." The driver returned to confer with officials. There was no violence at the dock. Meanwhile, a crowd estimated variously at 200 to 500 men gath ered at the downtown police head quarters, supposedly with the in tention of intimidating special po licemen who were being recruited. A small force of regulars dispers ed the crowd, making only one arrest for loitering. Albert E. Horn, Jr., Oregon manager for the General Petrole um company, said late today his company would inaugurate regu lar tanker service to Portland from California ports if police protection continues, similar to that given today. Several hundred employes of the Clark and Wilson Lumber company were thrown out of work today when the mill was forced to close last night because its docks were glutted with lum ber. Inman-Pulsen Lumber com pany officials announced that mill would not open Thursday morn ing, thus bringing unemployment to 250 additional workers. THREE IMPORTANT SI WASHINGTON, June 20.-0?)- Three bills vitally affecting the high and lowly of the nation were included in a large batch of meas ures signed by President Roose velt before leaving on his trip to New England. The White House today announ ced that in addition to other meas ures, the chief executive had affix ed his name to the loans to in dustry bill, second deficiency bill making huge relief appropria tions, and bill to regulate the na tion's communications system. The industrial loans measure, subject of a protracted dispute in congress, which once threatened the measure with death in confer ence, makes $580,000,000 avail able for five year advances to large and small business enter prises. The deficiency bill is next to the second largest appropriation bill to be enacted in peace time. It provides $2,629,600,000 for re lief purposes, public building con struction, and to meet unexpected needs of the government in the closing days of the present fiscal year. The communications bill estab lishes a commission of seven to regulate all wire and radio facil ities used in interstate commerce and supercede the radio commis sion that has been functioning since 1927. IN DEFIANCE DOC PICKETING MEA RES SIGNED Banks Will Make Service Charges Beginning July 1 A uniform group of service charges, effective in Marlon and Polk counties as of July 1, were announced here yesterday for all banks in the two counties. Local bankers. In making public the charges, said they were imposed primarily to cover the extra cost to banks of federal insurance of deposits which the first of next month will be added to all ac counts of $5000 or less. Hereto fore deposit insurance has ap plied only to accounts of 12500 or less. Under the new insurance provisions 98 per cent of the number of average bank accounts will be covered. In announcing the service charges local bankers pointed out that similar charges had been effective in many cities In this state and elsewhere for many months. The official statement of the banks follows: "Accounts having an average Relief Head Chiefs in California Charged With Fraud Gaiser Expected to Arrive Today to Assume Task Silas Gaiser, Salem's new school superintendent, Is expect ed to arrive here from Milton, Ore., today with his family to take over his new charge. The school board has arranged for Gaiser to go to work at once although the contract term of George W. Hug, retiring superin tendent, does not expire until August 31. By coming early In the sum mer, Gaiser will be able better to acquaint himself with the situa tion and to take a guiding hand in arranging schedules and facul ty organization for the coming year. STATE WILE TO PLACEITS MONEY Banks Won't Take Million as Deposit Because No Loans Available The sovereign state of Oregon which a year ago was worrying about how to meet its payrolls was faced yesterday with a reverse dilemma. The present problem is what to do with surplus moneys of the state. Yesterday in the vaults of the state treasurer was a sight draft for almost one million dollars on the federal reserve bank at San Francisco. Portland banks had drawn the draft when they refused to accept for deposit any more state funds on which the law requires them to pay two per cent annual interest on daily balances. With the state s total deposits averaging $3,500,- 000, in addition to the million dol lars covered by the draft, Port land banks called a halt on the flow of funds and ordered the state to take out its money. The state doesn't want the mon ey in currency it has no satisfac tory vaults for the money. So the sight draft on the federal reserve bank is being held, duly protected by securities posted by the Port land banks. The bankers claim they cannot pay two per cent interest, so slight is the demand for loans and so law is the interest rate received thereon. The state treasury, by law, is not allowed to invest its general funds in obligations other than those of the United States government. Yesterday Fred Paul us, deputy treasurer, said short- time U. S. certificates could not be purchased at a basis more fa vorable than a yield of two 100ths of one per cent a year. Silverton Man Dies Suddenly While at Work SILVERTONt June 20 John Larson, 67, a resident of this community for the past 28 years, died on the job at the sawmill here today, stricken suddenly, he did not -live until the ambulance, called immediately, had arrived. He is survived by his widow, Anna Larson; daughters, Mrs. Anders EJde of Paulso, Wash., Mrs. Ray Bowman of Florence, Mrs. D. J. Morgan of Kelso, Wash.; Margaret of Silverton, Gladys and Ruth of Portland; sons, Leonard of Fort Angeles, Ray of Silverton and Ernest of Salem. Ekmans' are in charge of i f nneral arrangements. balance of less than $50 are sub ject to a carrying charge of 30 cents which will allow five checks paid. Additional checks, 3c per check. Accounts having an av erage of $50 or more are not subject to a carrying charge and will be allowed a check for each $10 In balance. Additional checks will be charged 3 cents each. "Accounts having unusual activ ity will be analyzed and charged for any loss Bhown thereby. The bank may analyze any or all ac counts. "Each checking aecount ' shall be treated individually without regard to affiliated accounts, or the business of the depositor with any other department of the bank, except that payrolls and similar accounts of the same company may be combined for uniform formula purposes wun said company's account. "No service charge need be (Turn to page 2, col. 2) and CWA Paying Men to Be Idle One Allegation in U.S. Complaint Officials Neglected to Give Veterans Jobs it . is Claimed LOS ANGELES, June 20-fJfy-R. C. Branion, state emergency relief director and former stat head of the civil works adminis tration, and eight other former high officials of the CWA, were indicted by the federal grand jury today on charges of con spiracy to defraud the govern ment. Five of the defendants were indicted under the CWA act. and three, one of whom was named in both indictments, were named in indictments brought under the national re-employment act. The defendants charged with fraud under the CWA setup were, besides Branion, Pierce Williams, western director for the CWA and western regional administra tor for the federal emergency re lief administration; Major Jules Hanique, former county director and chief engineer of the CWA; Charles C. Frye, former CWA county director; Eugene M. Brown, executive secretary of the couty CWA advisory com mittee; James T. Ritchie. hi charge of the CWA purchasing department in Los Angeles coun ty, and George O. Durkee, in charge of CWA work assign ments. The seven defendants wera charged in general with Improp erly carrying out provisions of the CWA. They were alleged to have kept many thousands of men on the CWA payroll on job where "no tools or materials were provided, with paying thea to be "idle" and with employing men on projects not approved by the county CWA advisory com mittee. Named In the second Indict ment were Henry E. Walker, di rector of the Southern Califor nia National Re-employment ser vice, and Eugene M. .Brown, who also was named In the first In dictment. The second Indictment charged the three defendants with dis crimination against registered ne gro workmen and against veter ans. The indictment charged "fla grant disregard'' of the provi sion of the law that veterans with dependents should receive preference in work orders. The CWA indictments charged fraud in cases where alleged "fa voritism" in work orders had been given and involved projects which assertedly had not been officially sanctioned. HUGE LOSS FEARED EARTHQUAKES (By the Associated Press) Earth shocks over widely sep arated portions of the globe Wed nesday are feared to have caused extensive damage. Dispatches from Istanbul said an unknown number of persons had been killed in an earthquake in eastern Turkey, which was ac companied by a downpour of rain. The region worst affected was Smyrnaaon where communications, meager at " best, were reported completely disrupted by the vol canic of the tremors. Detailed in formation was not available. Villages were Inundated by cloudbursts at the same time they were being shaken by temblors, causing enormous panic among the populace. Reports from Beuthen, Ger many, said an earthquake in up per Silesia entombed seven miners in the Karsten Zentrum pit, and was sufficiently strong to crack the walls of buildings. An earthquake of considerable intensity was felt in Managua, Nicaragua, early on Wednesday morning. Disastrous quakes also have been reported recently from India and South America. Foochow Flooded After Hard Rain; Life Loss Heavy FOOCHOW, China, June il-(Thursday)-(P)-The worst floods in 25 years have Inundated the streets of this south China coast al city to a depth in some places of six feet. Torrential rains In the head waters of the Min river caused the floods. Traffic is carried on by boats. Scores of houses have collapsed in the flood and considerable losf of life has resulted In outlying-sections. OM