The Oregon statesman. (Salem, Or.) 1916-1980, November 21, 1934, Image 1

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The Oregon statesman., November 21, 1934, Page 1, Image 1

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Newspaper Page Textt .. - V - SERVICE . THE WEATHER - - Unsettled with abowers' We curu(0 oar carrier - ettice. It row paper today, doadjr Than.; Max. . Temp. Tuesday 61, MJn. 43, rlTer 4.4 feet, rain 2 Inch, southerly wind. - . wt arrive by 9:1s, call , 9101. and copy will be de livered at once. - FOUKD.EP 1631 EIGHTY-FOURTH YEAR Salem, Oregon, Wednesday Morning, November 21, 1934 No. 26S it i r if.. i t I: i f i , t F t- 1 - LOSSES PROVE INSULL, U Wouldn't Sink Own Money in Fraudulent Scheme Says Defense Attorney Government Claims Merely One Accounting Theory; Case Nears Climax t CHICAGO, Noj. 20-(ff)-A8all-tag the prosecutors tor produc ing only "absard theories," De fense Attorney Charles S. Lonns bury told the Instill mall fraud today that Samuel Insull and his aides had proved their innocence by their own losses. Loonsbnry, opening the final defense plea hi the hundred mil lion dollar financial trial, dis missed , all that the government charges ps "only one theory of accounting." , : "Would men put their own money Into a scheme to de fraud?" the defense spokesman demanded. "If this was such a scheme, wouldn't you think that some where along the line they would find at least one man who made a dollar?" i Lounsbury. formerly an ace prosecutor on the state's attor ney's, staff, opened the defense arguments on behalf of tour high officials of Halsey, Stuart ard Company, which he termed "the biggest investment banking house west of New York." They Joined wit Insull In forming Insull's ill-fated Corpora tion Securities company, he de clared, because of their vast con fidence in the Chicago utilities man and his business empire. "Mr. H. L. Stuart, Its presi dent, put in $75,000. Mr. C. B. Stuart put in over $500,000. C. T. UaeNeUle put in $375,000. F. K. Shrader put in $450,000 75 per cent of all he had, including his home and his lif a insurance." Lounsbury- bent forward over the speakers' pulpit "What for?" he asked. "To de fraud themselves?" J Might sessions were ordered by Federal Judge Janes H. Wllker son who announced he hoped to instruct the. Jury Friday after noon so that the case would go to the jury Friday night. ISSUE OWH PAPER NEWARK, N. J.rNov. 20.-) -A. few hoars after L. T. Russell, publisher, announced the Newark Morning Ledger would not be pub lished tomorrow, striking editor ial workers of the paper began work on a new morning paper. Robert . Ring, vice-president of the Newark . newspaper . guild, which. Is conducting the . strike, aid about 40,000 copies of the new paper, called The Reporter," will appear on the streets in the morning carrying bulletins on po lice and political news of Newark and vicinity. ' . : Strikers Quickly gathered the news and rushed It to a printshop where "rolunteer" 1 i a o t y p ers helped set it up. Ring said. The front page of the four-page folder will carry, news and strike prop aganda, the two inside pages will carry an ad stating the strikers' aims and the back page, he said, will have an editorial and other news. . An earlier edition of the Re rxirter made its abearance when the strike began Saturday, 'but no thought was given to dauy pno iifttlAn of a-eneral new until the publisher's , announcement of the Ledger's suspension tonight. Ring said. Nealey Held on ' Forgery Count 8ILVERTON, Nov. l0-(Spe-eial)-Recognised by Constable B. A. Pitney who was on a visit to saim TtnH Nealer. charged here with forgery, was given prelimin- ary hearing - today in Justice Frank Alfred's court sad bound over to the grand Jury, Pitney re nnrtxA tht vaiev. aralnst whom a complaint was filed some time go by Irrin Kaier, was giving musie lessons in Salem under the name of Bob Frailer. He was re turned to Salem late today and - lodged In the county jau. 2 New Delegates ; Seated by Labor Two new delegates were given their obligation by the Salem Trades and Labor council at its regular meeting last night. H. A. G lesey was seated from the ;tar "penters union, succeeding the late , William Darby, nd Eari? Gregg from the bakery and confectionery workers.'!?: h.'" -; - ' '" Much of the session was devoted - to an address by George Brewster ot Portland, director of the state STRIKING SCRIBES uhor Isderailoa'i sbel bureau. Smedley Butler Tale Of Fascist Plot Gets Attention of Probers "Hundred Per Cent Americanism' of Marine is Not Questioned Says McCormack; Head - Of Broker Firm Hints "Publicity NEW YORK, Nov. 20 (AP) Chairman John W. Mc Cormack, of the house committee on American ac tivities, mapped tonight a sweeping investigation of a report ed plan to establish a-fascist dictatorship in the United States with General Smedley D. Butler as its head, : After hearing the retired marine corps officer's story 1 ' 1 " ' : oof reports that Gerald P. Uac- nniirri i mum linn runtubivtww iHG DIE IB Salem Man to be -Assistant To freed; Program in City Progressing Keith Powell, now serving as a member of the executive commit tee of the Marion County Housing committee, has been named as sistant to Edgar Freed, of Port land, state director of the federal housing administration, according to advices received here yester day. Confirmation f the appoint ment has been withheld pending a conference between Powell and federal officials in Washington. While the appointment still Is unofficial, it is understood Powell will have charge of the financial end of the housing administration program in the state. His head quarters will be in Salem. Plans for the renorizing of the old house on the courthouse lawn have been completed and are in the hands of building supply deal ers of the city, members of the committee reported. Copies of the plans are on tile at the committee headquarters, State and High streets, where they may be in spected by interested home own ers. The meeting of the chairmen of the various committees this morning disclosed 10 additional loans had been completed by the local banks last week. The bank ers reported a decided upturn in the interest in the financing pro visions of the housing act with the result they expect calls for loans to increase, reaching the peak early next spring. C. E. Wilson, manager of the chamber of commerce and chair man of the house survey commit tee, reported that rapid progress is being made in the city wide canvass. Scores of home owners are reported planning, improve ments to their homes, Wilson an nounced. Trailer Runaway Fatal to Horse; Times Do Change The 1934 version of the team runaways that were common in Salem 25 years ago occurred here early last night when a trailer broke away from an automobile and killed one of the horses rid ing in it. The trailer, being hauled by a car driven by Hugh Shepherd of Jafferson, broke loose and rolled into collision with Wallace Bone steele's auto. Bonesteele, 1248 Saginaw street, was not hurt but the horse in the trailer was fa tally injured. A colt also riding in the trailer escaped serious In jury. CHEST FUND GROWS PORTLAND. Ore.. Nov. 20.-JPi -With two brigades alreadv trot the, 100 per cent mark in solicit ing ineir quotas, 9288,794 ot the projected $465,000 Portland com munity chest fund was reported obtained today. HEADS CONFERENCE VANCOUVER, Wash., Not. 20. ! -Cy-The Rev. P. W. Eriksen of Salem was installed tonight as president of the southern confer ence of the Pacific synod ot the United Lutheran church as the annual convention concluded. He was re-elected president at today's session. Other officers in stalled were the Rev. Adolph Nel son ot Portland, secretary, and William Salzmann of Portland, treasurer. ! Parish education and other edu cational matters was the most general subject of discussion n't the meeting. About 60 clergymen attended from Oregon and Wash ington. t SUCCEEDS LAMPKDT PENDLETON, , Ore., - Nov. 20. (JPfrEL B. Aldrich,' editor of the Pendleton East Oregonian, has been elected president ot the East Oregonian Publishing company, succeeding the late T. W. Lamp kin.' Lee Drake was named Tlce president and secretary-and will succeed Lampkin as business maa- it f aft Oulre, of the New York brokerage firm of Grayson M. P. Murphy & Co., proposed that he head a group of 500,000 in a fascist march on Washington to take over the reins of government, and Mae- Guire's denial, McCormack said: "We have heard nothing today that would cause us to change our opinion of General Butler's 100 per cent Americanism and patriot ism. "We are going to get to the bottom of this matter and we are going to call witnesses and records that will bring out the truth whatever that may be. After Butler had finished his testimony. Representative Samuel Dickstein, vice chairman of the committee, said '.'from present in dications, Butier has the evidence. He's not making serious charges unless he has something to back them up." MacGure was before the com mittee for two hours after Butler finished his story. He told the' com mittee that he knew nothing of any fascist plot to set up a dic tatorship and denied that he had ever discussed any such matter with the retired general. He told the committee that General Butler was a friend of his and that he had discussed military affairs with him in a general sense about six months ago. It was at that time that the basis for the Butler story is said to have been laid. MacGuire suggested that "Gen eral Butler must be seeking pub licity." I SE The voters of Jefferson county and not the courts had the final voice in declaring who was to be district attorney there, it was re vealed when the state supreme court handed down its weekly grist of opinions Tuesday. V. S. Howard, incumbent, sought the democratic nomination for the office at the primary election and was successful. A week later, Ber nard H. Ramsey, runner-up, filed a suit in the Jefferson county cir cuit court in which he contested Howard's nomination on the grounds that he had violated the corrupt practices law. Ramsey's contention was upheld both by the Jefferson county circuit court and the supreme court and the secre tary of state was ordered to place his name on the general election ballot. Howard subsequently filed motion for a rehearing of the case in the supreme court. While Ramsey and Howard were quarreling in the courts as to who was entitled to the demo cratic nomination, Boyd R. Over hulse eatered actively into the campaign and was successful at the general election. The supreme court Tuesday dismissed How ard's motion for a rehearing. The supreme court also denied the petition for a rehearing in the suit brought by the Sitka Spruce company of Coos county against the Home Mottgage company. The Coos county circuit eourt recently held for the plaintiff in this case and this decree later was upheld by the supreme court. VOTERS RULE ib ray in ci Eriksen Retains Position 40 Per Cent of Grain Sold . Aldrich Head of Company Joe Shelton Hurt in Crash PRICE AVERAGE 65 La GRANDE, Ore.. Nov. 20. (p)-About 40 per cent ot this year's wheat crop In Union county has been sold, local grain men estimated today. Sales have averaged 5 cents a bushel. The crop was estimated at 900,000 bushels. . HAS BROKEN BONES CONDON, Ore., Nov. -20-)-Joseph E. Shelton of Portland, seriously hurt in an automobile accident last night, was receiving treatment in s home here tonight for a broken leg, a broken upper jaw and other injuries. : . Mrs. Shelton suffered a bad scalp .wound but her condition was not regarded as serious. The Shelton's were on their way to Ontario on a business trip About 18 miles north of here, on the John Day highway, their auto mobile missed a curve and struck a bridge railing. - - : , Shelton, former Eugene newspa per publisher, was a democratic . candidate for secretary of state in ii Hi umn lotion, . T H IN QUICK TIME Mrs. Wayne Voris Convicted In 30 Minutes of Attack Upon Young Hunter ourtroom is Crowded Last Day of Trial; Sentence Time Not Yet Set A verdict ot guilty was returned in circuit court at t o'clock yes terday afternoon by a Jury which deliberated only SO minutes on charges of assault with a danger ous weapon on which Mrs. Wayne Voris, 23, was Indicted this month. Mrs. Voris made no state ment after her conviction. She was accused of shooting Harland Bones, 17, for alleged trespass on her farm when he and three companions were hunting pheasants two miles from Turner October 18. The suit hinged on whether or not Bones had shot or threatened to shoot before Mrs. Voris fired her 22-calibre gun at him. The evidence showed that she fired four times, the final bullet strik ing Bones along the left side of his skull and lodging in his hat. Judge L. H. McMahan who heard the case which took three days in circuit court said he had not yet set a date for sentencing the defendant. The charge Is sub- ect to a jail or prison sentence or a fine up to $1000 or both. Mrs. Voris is tree on $2500 bail. A crowded courtroom heard the closing arguments in the case. PORTLAND, Ore., Nov. 10-OP) -Depicting herself the victim of hypnotic powers, Mrs. Harriet K. Wrlght ot Portland tiled bank ruptcy petition in federal court here today, listing $3,479,971.75 liabilities. Her assets were listed at $36,- 100, of which $35,000 was repre sented by a note. Mrs. Wright declared she sub scribed $2,000,000 to stock which now is worthless and advanced 35,000, taking a note as security, to aid the late Mrs. Mollis E. Pur dy in recovering a chest of gold represented to have the fabulous value of $60,000,000. Mrs. Wright alleged she came under hypnotic power of Mrs. Purdy who represented the "gold chest" to. be an inheritance from her parents, a Chicago merchant prince and a woman member ot English nobility. Mrs. Purdy also obtained from Mrs. Wright her subscriptions to $2,000:000 capital stock in the now defunct Purdy-Maynard cor poration, New York manufactur ers of oil burners, Mrs. Wright's attorney declared. Through, her alleged hypnotic power Mrs. Purdy likewise obtain ed Mrfc. Wright's signature on a series of promissory notes, aggre gating approximately $200,000, ror which Mrs. Wright as been sued and on wich Judgments have been obtained, It was declared. E (By the Associated Press) Snow plows were used again yesterday as winter and blustery weather continued over Oregon. Light snow continued to fall In the mountains west of Bend. The McKenzle Pass was usable but motorists were warned to use ex treme caution in crossing the storm-swept summit where squalls come and go moodisaly. Snow plows were used for mov ing 10 inches of snow from the Pacific highway over the 81ski- yous south of Ashland and oyer the Green Springs road between Ashland and Bend. Other plows nosed through a foot of snow on the Oregon Caves and Crater Lake highways. In Portland since September 1, 14.86 Inches of rain has fallen, almost twice the normal precipi tation. Drlszllng rains and showers fell on eastern Oregon. Club Federation Leaders Convene . Plans for promotion of "Com m unity Life", paper being pub lished by Ed Ahrens of Turner for the Marion-Polk county Federa tion ot Community clubs and of the farmers co-operative gasoline and supply station here were die- cussed at length by the executive council of the federation which met at the chamber of commerce last night. Luther J. Chapin, pres ident, announced the next federa tion meeting would be held De cember 1 at the Suverton HlUs n ii GUILTY OST MILLIONS TO HYP BOTIST, CLAIM BLUSTERY WEATHEB CCIiES TO 1L ROOSEVELT DEDICATES KENTUCKY MONUMENT r- W vv' y-.-: ,wrrrL- . : t , ' ' N I . , ',,, 1 ' , .'-X::-::-";':?:-x- :';w:,.' " " " . - s " ' '"V- "f -:: v v -'" , . ' DeclarlBic that the New Deal has to George Rogers Clark and pioneers of the west at uarrodsbnrg, JiyM Dexore an appianamg aaaience of more than 50,000 persons, to mark bis first official atop on his present southern tour through the TV A area. Here are photos from the dedication; top, left to tight, the chief executive seated with Governor Ruby Laffoos, and U. stand in the shadow of the Clark monument, with arrow pointing to President KooseTeit interna tional Illustrated News Photos. S OF STATE VOTES COMPLETED Martin's Plurality 21,156 And Mott's is 15,813, Official Figures Charles H. Martin, democrat. received a plurality of 21,168 over Peter Zimmerman, indepen dent, for the office of governor at the recent general election, ac cording to complete official re turns In this contest, tabulated Tuesday by the secretary of state. The tabulation showed that Martin received a total of 116, 677 votes as compared to 95,519 for Zimmerman, and 86,926 for Joe E. Dunne, the republican nominee. Harry J. Correll, com munist candidate, received 1475 votes, while Abram M. Silver man, Independent, polled 1379 rotes. Hank E. Wlrth, indepen dent, who officially withdrew from the race a week prior, to the election, received 536 votes. votes. James W. Mott, republican, for representative in congress from the first congressional district, won over R. R. Turner, democrat, by a plurality of 16,:iS votes. Mott received 67,286 votes while Turner polled 11,473. Emmett W. Oulley, Independent, received 12,963 votes, and W. S. Richards, socialist, 3225. In the second district Walter M. Pierce, democrat, defeated Jar H. Upton, republican, by a plurality of 7966 rotes. Pierce polled 29,221 votes and Upton 11,385. O. D. Teel, socialist, re ceived 1034. Returns tor other state ofii- (Turn to page 2, col. 8) McKay to Delay Board Selection Mayor Douglas McKay will take three davs" to consider whom ha win asnoint to the dis interested committee which wiu determine for the city council the most adequate and feasible source of water anDnlv for the city, he said yesterday. He plans to con fer with some ot the probable ap nnlntsM Ttaa iDveatiratlnK com mittee, authorized by the council Monday night, win consist ot one member each from among the en gineers or waterworks superin tendents of Portland, , Meaiora. enrM. and Astoria and a fifth from the Oregon State college fac ulty. Gain In Gasoline Use Is Reported 1 Gasoline consumption In Ore gon Increased from ijs,i. sos.tK railons durina the period January 1 to October 31, 1933, to 141.S19.9ZS.7& during tne cor responding nine months this year, P. J. Stadelman, secretary of state, announced Tuesday. The gain for 1934 was 6,921,622.80 nllona. ' V: ' " ' The total fuel oil tax received during the first" nine months of 1924 was $7,080,996.54 to $919, 180.57 In excess of $6,121,865.97 flaring, the same period in afjft not fiaighed "pioneering". President 8. Senator Alben W. Barkley; below, glimpse of me speaaer s World News at a vjiance (By the Associated Press) Domestic: NEW YORK House committee Investigates report that Smedley Butler's aid was sought to estab lish fascistl in U. S. WASHINGTON Senator Nye calls Du Pont proposals "Just a sop to combat movement for gov ernment monopoly In munitions making." WASHINGTON William Green, for labor, and bankers' ad visory council add support to ad ministration recovery program. FLEMINGTON, N. J. Revenue agenta enter Hauptmann case as his bank and brokerage accounts are tied up. PHILADELPHIA Ruling Mocks use of relief funds for rural Industrial communities for the unemployed. WASHINGTON New drive In congress expected for monetary expansion. Foreign: LONDON Early breakdown of trl-power naval conversations predicted. BELGRADE Dowager Queen Marie of Rumania plans American visit with child King Peter of Yu goslavia. BUDAPEST World's wheat Industry faces its "worst crisis" unless control Is tightened, ex perts are told. LITTLE AMERICA Extensive new land areas discovered by aerial surrey from Byrd expedi tion. GENEVA Ru8la reported ready to ask league for interna tional control of arms traffic to effect embargo to Paraguay and Bolivia. FRAUD IS CHARGED DALLAS, Nov. 20 Mr. and Mrs. Jack Chaney were arrested here today and are in the county jail awaiting a hearing on a charge of defrauding a hotel. Bond was placed at $250 each which they could not furnish. "Hot" Mexican Dishes Are Sought in Week's Contest Hamburger and rice are stand ard ingredients in "hot" cookery, as - well as the peppery . spices. Any recipe with a Mexican dash of color or flavoring is eligible in the Round Table contest this week. ' . ' Contributions will be received up a n 1 1 1 Thursday noon and prlse-wlnnera will be announced Friday morning. ' Continuing with the white cake recipes' received last week, the Round Table presents: Banana Cake Supreme H np shortening ltt ! SOgM - S Wit t, eupt Mtry floor . n H tipooa taking ppr4w - tMipoon tkdo eup aoar Bilk : ... 1 cup BUhid baaaaM (I I) . )4 teaspoon salt . . . - Cream shortening and add su gar gradually. Add well - beaten eggs. Sift flour once before mea suring. Sift flour, baking powder soda and salt together and add alternately with four, milk land Roosevelt dedicated the memorial LAST STATE H JOB CLOSES tOWH Snowfall in District Above Detroit Causes Halt on Clearing Contract The last of the state road jobs in Marion county employing more than a handful of men, the Heller and Glllgannon contract on the North Santiam highway 13 miles above Detroit was shut down Monday on account of snow. Manager D. D. Dotson of the-na-tional re-employment agency, SSS North High street, was Inform ed yesterday. Approximately 60 Marion county men had been working on this contract, one ot clearing right of way. Road work on the North San tiam route is now virtually at a standstill, Dotson said. Only a few men are doing cleanup work on the contract between Mill City and Gates. Elsewhere in the county all state road contracts have been ccompleted, leaving the road (Turn to page 2, col. 1) Trio ot Charges Face Edmundson After Collision A triple charge was written up against P. B. Edmundson, 1443 South Commercial street,, after his couple collided headon last night with a roadster driven by R. I. Shriner, 344 North Front, at the intersection ot Bellevuee and South Commercial streets Police charged Edmundson with failing to give right of way, driving on the wrong side of the street, and passing another machine, driven by Dr. R. Lee Wood, 533 South Liberty street, at an intersection None of the motorists involved was injured and car damages were slight. bananas, which hare been mash ed through a sieve. Add flavor ing, pour Into greased and flour ed layer cake pans and bake, 350 degree oven, for 20 minutes. This is good with any cake " frosting but Is simply delicious with whipped cream between layers and on top. Mrs. George Manning Route 4, Box 15A - . -" , e White Cakt erf gkorUnlag -t caps nor . fe cap floor I cap nrcct rnltk .- , Waito 4 mta . t level teipoon bakiar powder 1 teasptoa vaailla " - Cream shortening, add sugar gradually. J e-a t Tn g constantly. Then add 'milk alternately with flour which has been sifted once before measuring, and three times With- the baking powder. Add vanilla - and stiffly beaten egg whites folded In at the last. . Turn to psge 2, col j. LABOR HILLY NRA Leadership Also Gives Out Word Cooperation Will be Accorded Power Pronouncement Only Rift in New Harmony Of All Concerned . By RICHARD L. TURNER WASHINGTON. Nov. 2d.-4f- To the growing cooperative drive for economic recovery tonight was. added a group of conserva tive critical bankers, the leader ship of NRA and finally labor. William Green, president of tkw American Federation of Labor, appealed to working men -everywhere to get behind the adminis tration's housing plan, which had' been enthusiastically endorsed by' the business men leading' the move for a harmonious working relationship with the administra tion. . ,f - ! Coinciden tally, the federal ad visory council : twelve bankers -chosen to advise the federal re serve board but frequently at. loggerheads w 1 1 h it pledged ' their support to the board and its new governor, Marriner S. Eccles. At NRA wo.d was spread that the seven man board now direct ing that agency would do every thing possible to assist the co operative movement. As a first step it planned to avoid any ma jor policy changes for the pres ent so that business may pro ceed without interference. Green saw the housing pro gram as holding the potentiaBV ties of providing employment far thousands ot workers and ef working vast improvement in the conditions under which they and their families live. The move ment, he added, "deserves and must have the support of every one." Thus far the president's atti tude on the p o w e ,flueUlo. freshly reiterated in a speeek Sunday night while the coopera tive move was Just getting under way, has provided the only rflt in the new partnership between government and business. It was learned on good autaor- ty today, however, that Mr. Roosevelt probably will be offi cially urged to recommend te congress legislation to limit the size and power ot holding com panies in the public utilities la-' dustry. A committee on power policy has the Eubject under con sideration and is to report soon to the chief executive. MEMN PAGET TO GET IB POST PORTLAND, Ore., Nov. 19.-JP -Merwyn E. Paget, whose request ed resignation as assistant man ager of the Oregon branch of the Home Owner's Loan corporative caused a stir, is now in Washing ton, D. C, with the federal hous ing administration, it was report ed here tonight. Paget was talked for the posi tion as Oregon HOLC manager before he resigned September 13. Now he is attending a school with a group of other prospective workers in the coming program involving loans for new construc tion as well as for repairs and remodeling. He left Portland November 7, at the request of the Pacific coast manager for the federal housing administration. He was accompan ied by four other Portland men who will attend the school to pre pare them for positions with the housing administration. In the group was Kirk Rey nolds, former state appraiser for the Oregon HOLC, and W. O. Hoi ford, Portland architect. "I really don't know what po sition my brother has or what Is his title in Washington," said Lowell a Paget ot Portland. "I don't know whether or not they will be returned to Oregon." Food Poisoning Victims Better ; Parker Gies One CORVALLIS, Ore., Nov. 2Hffl -The 14 Alpha Tan Omega fra ternity members stricken with food poisoning from sandwiches filled with left over turkey, were reported out ot danger tonight. 1 The six- sent to the hospiUl were Parker Gies of Salem, Wil liam Kniesel of Gresham and. Ru dolph Hakala, u Clif ford Folen, Wayne Kay and Robert , Morgan, all of Portland. Hakala and Kay were kept un der observation and given treat ment nntil today. ' The turkey was first served at a banquet honoring alumni at AK, pha Tan Omega house tor home"" coming weekendV . , - L - '- A).