. . . - : .. ..- , - , . I - ' :. . . - - , - v - .. , i j "s. . CIRCULATION Average Daily and Sunday for February, 1936 . Distribution 7981 Net Paid 7562 -: MEMBER A. B. C. .'. THE WEATHER Cloudy with occasional rains today and Monday,', moderate; Max. Temp. Sat nrday 55, Mtn. S6, river 6 feet, rain .03 Inch, south wind. . FOUNDED 1651 EIGHTY-FOURTH YEAR Salem, Oregon, Sunday Morning, March 17, 1935 No. 305 WW IS r flLi J tint : FOR BIENNIUM iBut Is Occasioned Wholly 1 by" Relief Program; z- , May Be Avoided If Curiam Msf ivhinn to Ma a i.iii.i ri a r i i.i a. m a f Forthcoming in Pension . f Setup, State Saves- By SHELDON F. SACKETT Old Man Oregd'nfwas scratching his heaKyesterday and using his tub lead pencil to see how the rery laf.e and not lamented 38th legislative assembly had left him on those always touchy subjects of taxes, expenses and deficits. Here are the conclusions to be reached by the old fellow who pays the bills, no matter what the session may hare done: - -1. Total appropriations, includ ing $(,000,000 for relief and the mlllage taxes for higher education and the world war veterans' com mission, ran to $17,787,599. 2. A fairly optimistic although not improbable estimate of state Income to he applied against that . outlay in 1935 and 1936, is $16, 718,369. 1 3. The resulting addition to the state deficit will be 81,069,250; this sum added to the $1,304,290 deficit December 11, 1934, will give the state a total red Ink bal ance of $2,373,520 at the close of the blennium. 4. While no new taxes aside from ones on beer and wines were approved by; the legislature, the full amount of real property tax permitted by law must be levied by the state in 1936; this sum will be $3,308,373 in contrast to $2,6(7,996 levied for 1935, a gain of $640,000.; Lees Distressing On Closer Scrutiny That is thei picture, without any frills or explanations. It looks less distressing with Qualifying state ments. First, the total allowable ex penditures includes $1,000,000. for old-age pensiattsXhla vnoaal has been appropriated from the . general fund butjseveral strings are tied to the outlay. It must be matched by the counties, which will be done; the counties are already expending tome $700,000 a year for pen sions. Next the aggregate sum raised by the state plus a like amount from the counties, must be met by the federal govern ment. Uncle Sam's "social secur ity" program is not law. When that friendly uncle, who has been handing great chunks of money to the states without expecting a thank you, does get around to old-age pensions he may not con sider it is ia the least necessary to match dollai with the 48 states. In that event the $1,000, 00 set aside by Oregon will be blocked and the $1,000,000 can revert to unxpended balances In the secretary of state's office. Another ray of hope is this: Included in the estimate of in come is $2,250,000 which the state liquor commission estimates "will be its net income from March 1, 1935, to December 1, 1936. This, figure I is very conservative In Tiew of the commission's earn ings the last; six months of 1934. These earnings plus the . higher tax on beer might readily net the commission $2,750,000 for the next 22 months. In such an event an additional $500,000 would be clipped from the estimated defi cit. Martin May Chop Off More Expenditures Governor Martin has shown his willingness to do his bit in clip ping the outlays made by the leg islature; he has already chopped off $45,000 by his veto of the Jefferson and Tillamook county tax refunds. This is a small item in the $17,787,599 in outlays pro- Tided for but it points the drift of the wind. The governor may be able to clip off several hundred thousand dollars more by an eco nomical administration of allowed 'appropriations for 1935 and 1936. These savings, of course, would be available as additional income , to balance the budget. Another cheering thought for Old Man Oregon as he contem plates the next two years and the state of his exchequer is this: the deficit for 1935-1936 is an "extra ordinary" not an "ordinary" defi cit; the normal expenses of the ' state will be fully covered by moneys coming to the general fund. The sag will show in the excess expenditure of $4,000,000 in relief funds over the projected Income of $2,250,000 from liquor revenues. This overdraft will not he on the general fund of the state; it wili.coma from the use of the state's credit In the sale of . anticipation ., certificates , against future Income from liquor. In stead, of the state's being request ed to issue interest bearing, gen- ' eral fond warrants as it was when the Meier deficit climbed to $4." 500,000,- its ' excess expenditures over income will be covered with a : few choicely printed slips of t obligation onfjtate liquor Income, issued, in denominations of not ! lew than $50,000 and bearing in- terest at two per cent a year. .If fate should decree at the end ' : (Turn to Page 2, CoL 5) Labor Troubles Grow; Five Industries Face Sir ike; Some Disorder Women Cigar Workers Hurl Bricks at Police; No One Badly Hurt; Union Officers Jailed for Refusal to Call Off Walkout (By the Associated Press) LABOR troubles splotched the nation's industrial map Saturday. Anthracite, electric service, shipping, fire arms and cigars were among the commodities affected. Striking women employes of a San Antonio cigar fac tory clashed with police and eleven were arrested. Bricks were hurled but there were no serious casualties. NEW MB TO E Arrivals From Midwest are Many Says Riches; to Be Chamber Guests New farmers in the WiUamette valley who have come here from the middle west the past few months will be especial guests of the Salem chambev of commerce and of Harry T. Riches, county agent, at two meetings planned to welcome the newcomers here and to discuss with them farming practices and problems of th- Wil lamette valley. The first of the meetings is to be held next Thursday after noon at 1:30 p.m. at the chamber of commerce rooms here. For the first program members of the extension staff of the Ore gon State college will be present and will discuss the !ol!ow'ng sub jects: "Spring Crops," D. D. Hill; "Spring Gardens," A. G. B. Bo quet; "Willamette Valley Soils," Arthur King. -Mr. Riches said yesterday he was certain at least 100 farm families from the middlewest had settled near Salem within the last few months. Many of them have applied to the county agent for help In their farm problems and out of these interviews greirJMc Riches' plans for a gathering for all new farm families in the val ley. Three prizes have been arrang ed for the meeting to add interest to the gathering, the prises be ing donated by local merchants. The farmer who moved the greatest distance to Marion coun ty will be awarded a 49-pound sack of flour. The woman having the largest family will be awarded a 32-piece breakfast set. The man who has been farming for the longest time will be given a hand saw. RELIEF SETUP WASHINGTON. March 16.JP) Baelting the relief administrator's charges of "corruption" in the Ohio relief administration. Presi dent Roosevelt today directed Harry L. Hopkins to "assume en tire control" of spending federal relief funds there. The action struck directly at Ohio's democratic governor, Mar tin L. Davey, whose campaign committee, Hopkins contended, had conducted a "shakedown" from firms doing business with the state relief administration. Sharply, Davey replied, with a denial of Hopkin's charges and a dare that he come to Ohio and face prosecution for "criminal libel." Long Beach Fire Covers Four Blocks LONG BEACH, Calif., March 16 -(ff)-Sweeping through three structures at 14th street and Colo rado avenue in the east Long Beach industrial district, fire early today menaced an area of four blocks. Before firemen could reach the scene the salvage plant of the Good Will, industries, a charity organization, and the Harbor Mill and Panell company and the Hentler Woodworking company plants were badly damaged. Fire men estimated the early damage at $100,000. -, Death Caused brM Plunge oi Auto LA GRANDE, Ore., March 16. ff)-Rolla W, Thomas, 40,' Star key, Ore., was in grave condition here today from fractured and dislocated vertebrate and inter nal injuries suffered last night in an automobile wreck near Starkey. A companion, A. Rogers, escap ed with only minor Injuries when their automobile plunged down a 100-foot embankment. HE 0 t O Because tney reiusea to can on a strike at the Glen Aiden coal company's operations, 29 officers of the United Anthracite miners of Pennsylvania were Jailed for contempt of court. New York prepared to meet a threatened strike of utility em ployes with Mayor Laguardla promising that the city will not be plunged into darkness if the walkout occurs. The Faclfic coast blockade of oil tanker sailors seeking prefer ential recognition extended from San Diego, Cal., to Ketchikan, Alaska, with more than a score of vessels tied up. A federal con ciliator was endeavoring to un tangle the situation. An orderly strike of 1000 em ployes of the Colt's patent fire arms manufacturing company continued at Hartford, Conn., while granite workers In the Barre, Vt., territory decided on a 14 month truce with employers. The national labor relations board in Washington pondered the case of the Gary, Ind., screw and bolt company which, the board said, has refused to file a certified payroll list or act on a request to hold an election. In the soft coal field a com mittee of operators and united mine workers prepared to meet in Washington Monday, to draft new wage and hour contracts for the vast Appalachian territory. 1 BOOSTING UN Government Financial Aid Sought; Mrs. Gabriel Heads Movement PORTLAND, March 16.-(ff)-Fine linens will catch the eye of almost any woman, but the flax and linen industry Itself has caught the eye of a group of Ore gon women. Under leadership of Mrs. W. W. Gabriel of Portland, the Oregon women's campaign for develop ment of the flax industry has ral lied wide support. Government co operation In financing is sought Encouraging words and support were received by the group from Senator Charles L. McNary of Oregon, the minority leader. "I am so happy to know of your splendid cooperation and that of your committees in the matter of promotion of the linen industry," Senator McNary wired Mrs. Gabriel. "I hope we may succeed in ob (Turn to Page 2, Col. 4) WOMEN TAKE LEAD FLOODS LEAVE THOUSANDS H 1. '" ;im i 1 -50 iiv, . ,m-,.. . . s. u." iftwiMMiiW: in" ' ' i-rrn0 r , ai, t aBvA. -c-j vswtatf .-Ajwm wsaifct. ill hi I ' - '',!,i - A a.uoYs, ex. jTTancis river aiier got one or control above Kennett, Blo cracainff inrougn lereea a places, trapping livestock and forcing hundreds of persons to flee from their homes. Below, general Tiew of Poplar Bluff, Mon after the raging Black river invaded the outskirts of the town and drove many families from their homes. i IT 1 FOR PROBE OF Independent Committee to Be Selected; to Have Full Cooperation Judd Greenman is Selected to Head Reorganized Board in State A thorough-going Investigation of the Oregon state relief admin istration through an investigation committee of three named by Gov ernor Charles H. Martin was an nounced yesterday by the state's executive following a meeting of the newly organized relief com mittee. The governor said late yester day afternoon he was not ready to announce the members of the committee. Their appointment is expected early this week. The decision to conduct the In vestigation was made with the full concurrence of the state re lief group. Governor Martin said. The new relief board met in the goverors office for an hour and one-half in an executive ses sion which preceded announce ment of the investigation. Greenman is Chosen to Head Committee J n d d Greenman, republican, Vernonia, was named ehairman of the new relief committee; E. R. Bryson, republican, Eugene, was named vice-chairman; Cella Gav in, democrat. The Dalles, was elected secretary. Other members of the state relief committee as it is now constituted Include Mrs. Thomas Honeyman, repnblican, Portland; Walford Shuholm, dem ocrat, Portland; J. H. LJuhn, democrat, Portland; Dr. Robert L. Benson, republican, Portland. Miss Gavin was unable to attend yesterday's meeting because of a court engagement at Goldendale, Wash. In determining on the relief investigation, Governor Martin- said he imposed five conditions: 1. The Investigation must be completed within SO day. "This is to safeguard relief clients and employes from the unrest arising from the uncertainty of the na ture of the report," the governor said. 2. Affidavits under oath are to be taken from persona making charges. 3. During the progress of the Investigation, there will be no publicity. When the report of the committee is ready, it will be re leased to the press by the gov ernor. 4. All financial records, includ ing the sums of money or mater ials furnished each relief case, will be furnished the investiga tors, but confidential material re garding relief clients will be safe guarded as required by federal regulations. 5. The data and conclusions of the investigators will be subject to check and to verification by federal officials since the federal government has a continuing in terest in funds allotted for un employment relief purposes. The investigation of relief as administered in Oregon the last (Turn to Page 2, Col. 1) 1 - ii v 4k.,l".,-AjUiArA:r" mm- " m TL f - . v "t - y wj--- -,tfe& :- ' Jt' - N v.'- - .? j..-. .. ii nin m i Mil T . mi - . i v. World News at a Glance By The Associated Press WASHINQTON-Senate amends work reUet bill to continue relief administration one year, deters action on public works extension. KANSAS city Dust storms in west cause tour . deaths, severe damage; rains and show give re lief in places. WASHINGTON Income tax returns for first 15 days of March Increase 29 per cent over last year. NEW YORK Tieup of trans portation, manufacturing, light ing current threatened by propos ed walkout of utility employes. WASHINGTON $120,600,000 of new security issues in March causes seeuritiee commission to pr edict, jfapital market is thawing out. WTLKES-BARRE, Pa. 29 an thracite miners sentenced for. de fying strike injunction. WASHINGTON 2,110 arrests and property seizures reported in two-ay anti-crime roundup by treasury. RALEIQH, N. C right prom ised pit Mrfiv Elva Davidson's will leaving1 her part of Statler for tune to husband. WASHINGTON Senate orders investigation Into Morro Castle and Mohawk disasters and into drop of cotton prices. WASHINGTON House "liber al bloc" adopts 16-point program tor economic and social Justice. Foreign: BERLIN Hitler defies Ver sailles treaty and assumes equal ity of armament by decreeing compulsory military service which more than quadruples army. PARIS. France instructs diplo matic representatives to discuss steps to be taken about German rearmament with Versailles sign ers. LONLON Barbara Hutton an nounces divorce action against Alexis Mdivani. BRAZZAVILLE, Middle Congo Governor general, six compan ions, lost in plane in cannibal-infested Jungles; reports they have been found not confirmed. PARIS Premier Theunis of Belgium prepares to ask economic aid of France in "gold bloc" mon etary conversations. EUROPE EXCITED IT EfH Some Nations Sympathetic, Viewing Stand as One Forced by France (By The Associated Press) Intense excitement gripped Eu ropean capitals Saturday as. the German government, suddenly sloughing off the military provis ions of the Versailles treaty, de creed compulsory military service in the Reich. The action, following soon af ter Gen. Herman Wilhelm Goer ing's announcement that Germany has an "official" military air force, was taken in many quarters to be the Reich's direct answer to the French adoption of two-year compulsory service and the re cent British white paper criticis ing German rearmament. Paris, in particular, was stirred by the news from Berlin, French men recalling the similar sequence of events that preceded the out break of the world war. Telephone wires between Lon (Turn to Page 2, Col. 6) HOMELESS ' " i, v v - ? o 1 - . r ,jmrf?t"lf' "nmmr'i i - Mm HITLER SCRAPS TREATY, PLANS Half Million or So Peace Time Force Proposed by Germany's Fuehrer Violations, Preparations for War by Neighbors Cited as Reasons By LOUIS P. LOCHNER i (Copyright, 1935, by Aitoeiated Press) BERLIN, March 16. The Ger man government, declaring Ger many no longer obligated under the Versailles treaty, today an nounced approximate quadrupling of its regular army. (Under the Versailles treaty, signed at the conclusion of the World war, Germany's armaments are sharply restricted and her standing army limited to 100,000 men). ' Simultaneously Chancellor Adolf Hitler, lashing out bitterly at rearmament over Europe, dis closed that the cabinet, in decree ing compulsory military service throughout the reich, acted in di rect answer to the French move increasing the term of army con script service to two years. The cabinet's decree provided that Germany's future peace time army shall consist of 12 army corps of three divisions each, or 36 divisions in all. It will num ber, according to semi-official es timates, from 325.000 to 480,000. (A dispatch from London said Hitler bluntly told Sir Eric Phipps, the British ambassador, that the German army will num ber 600,000 men). Peaceful Intentions Of Nation Reiterated The fuehrer, reiterating Ger many's peaceful intentions said her national safety demanded an increasing army. He cited rearmament through Europe, assailed , violation of the Versailles pact on ' the part of other powers and said "under these conditions Germany had to take the necessary measures to put an end to her defenselese ness." Rushing back to Germany from Berchtesgaden to shepherd the "big army" decree through the cabinet's secret early morning meeting, the chancellor Issued an Impassioned appeal to the German people, saying Germany is com pelled to take her military fate in her own hands. "When Germany laid down her arms and submitted to humlliat ing conditions in 1914," he said. she hoped to serve humanity. "... Only because'Germany ex pected that general International disarmament would follow in the (Turn to Page 2, Col. 7 15 EYED BY The state's building program, approved by the legislature, will come before the board of control at an early meeting, state offi cials declared yesterday. While tho appropriation bills totaling $221,500 for four additions to state institutions were not signed yesterday by the governor, ap proval was expected Monday. Plans for two of the improve ments are already lodged with the state board, it was revealed at the statehouse. When The Dalles hospital was built, a home for the nurses was provided in the plans but the home was not constructed. With slight modifi cations these plans will be suit able for the 315,000 home the legislature authorized. Similarly plans for the state tuberculosis hospital addition here are available since an additional story on the hospital was plan ned when the original structure was built. This project will cost $56,500. The state hospital for the in sane which will have an addition at a cost of $100,000 has no plans prepared for this specific project, -When PWA was being importuned to aid the state two years ago, a more extensive ad dition to the state hospital was planned. State officials yesterday said these plans '.were not, suit able since they called for. a -far larger expenditure than the $100, 000 approved by the legislature. Plans will. also need to be pre pared for the $50,000 dormitory authorized " for the state blind school.,-' cx Supposed Minors ' r Injury is Fatal KLAMATH FALLS, Ore., March 16 Cy-The death - last night of J. E. Losle, stockman of the Swan Lake district, surprised hospital, attendants who believed him only slightly hurt in an auto mobile accident near Olene. - It was believed heart weakness may have contributed to his death. His car overturned on the Klamath-Lakeview highway. - BUILDING PROGRAM BOARD nn?ii i i ttt m uiy ana Latest Selections for State Basketball Race Little Prescott Reaches Finals, Then is Drubbed SEATTLE, March 16.-VffV-The Yakima Pirates, performing with all the power of a college five, snowed under Little Prescott, the smallest school but the sensation of the tournament, 47 to 11 here tonight to win the 1935 Washing ton state high school basketball ti tle. About 3.450 of the 3.500 fans were pulling for Prescott. The school with only about 30 boys enrolled, the tiny southeast ern Washington representative reached the tourney finals with upset victories over three well touted teams. The task was too great, however, to win again to night, after beating Eatonville this morning in the semi-finals, 24 to 22. TIMBER SUES TO BE FEW, BELIEVED i Cronemiller Holds County Courts Over - Fearful; Offers are Low County courts of the state are over-fearful of the bad results of federal purchases of forest lands in Oregon, In the opinion of Lynn Cronemiller, state forester. "The majority of the purchases of the federal government have been in eastern states and the sums paid for the lands have been a pittance of the amount a west ern timber landowner would ask for his holdings," Cronemiller ex plained yesterday. "To my knowledge the most money the government has ever paid for timber land' has been $6.25 an acre. Yon can readily see that this would be only a frac tion of the money asked for tim ber in the west. Taking 35,000 to 40,000 feet of timber as a nor mal stand per acre, at a price of $1 a thousand board feet the sum required by private holders would far exceed the government's rate to date." Cronemiller explained that a maximum of $7.50 an acre had been set on timber lands for sub sistence homsteads in the Siuslaw country but he added that he did not think this maximum applied to federal purchases under the Weeks act. Cronemiller said that federal records for recent years showed some lands sold as low as $1.83 an acre. Included In such sales were cutover lands, Cronemiller said. Sale of these in Oregon by the private holders to the federal government would not be harm ful to the county courts, he stated. When and if purchases of tim ber lands are made in Oregon they will be handled through the na tional forest reservation commis sion, Cronemiller said. These purchases will not be hurried, in Cronemiller's opinion. California authorized federal purchases in 1934, he said, and thus tar the only negotiations have been for a tract of Redwood timber which is sought by the government as a park. Pence Arrested After Car Hits Parked Machine M. Pence, 1720 Broadway, was arrested by city police early this morning on a reckless driving charge after he had driven into a car parked in front of the Ma rion hotel. Pence's car, a sedan, struck the parked car with sufficient force to swing it through a 45 degree angle and to tear off a rear wheel. The windshield on Pence's car was shattered and the bumper and radiator damaged. Officer Frank WInslow made the arrest. . . -. A Lodge to Observe 40 th Anniversary ' . ..- .- CHEMAWA. March 16. Re bekah lodge No. 'l will celebrate Its 40th anniversary Monday eve ning with an appropriate program under the direction of the noble grand, Evelyn Heffeman and Ma bel Gardner. Initiation will also take place, ' ' At the . meeting .last Monday John Groves, William Clavek and George Naderman had charge of the program, which was much en joyed. - Mildred Wallace played solos on the steel guitar; Norma Fahdeneni at the piano and Elmo Innxentl with his violin played i several duets. - umapme Portland "B" Entrant Only One Lacking; Pick Monday . Gym Prepared, Teams to Begin Arriving Early in Week FIRST DAY 1 o'clock Grande. SCHEDULE Salem vs. La- 2 o'clock Marshfield vs. Co lumbia Prep. 3 o'clock Ashland vs. Ben son. 4 o'clock Jefferson or Lin coln vs. Umaplne. 5 o'clock Mill City vs. As toria. 7:30 o'clock Corrallis vs. Klamath Falls. 8:30 o'clock MJ-MtnnTtlle vs. The Dalles. 9:30 o'clock Gardiner vs. Oakridge. t With only one more team ol the 16 district champions to bi named and with the Willamette gymnasium cleaned, polished and overhauled, everything is fa read iness for the opening of the 16th annual state high school basket ball tournament here Wednesday afternoon. , Portland, perennial laggard, has yet to select its second place team. Jefferson and Lincoln will play Monday tor the right to come to the tournament repre senting District 12. Benson, cham pions of the Portland Interschol astlc league, win represent Dis trict 11. Mill City and Umaplne qualified last night In the finals of "B" district tournaments at McMinn ville and Pendleton to represent Districts 13 and 15. Play will start Wednesday af ternoon it 1 . n.m. when Salem meets LaGrande. Eight games will be played the first day, losers go ing into the consolation series with a chance to win fifth place. No team can lose more than one game and remain in the tourna ment. In preparation for the annual playoff the Willamette gymna sium has received Its annual spring cleaning. A large staff of students will assist Coach R. S. Keene, tournament director, in handling the crowds. . For the first time in the his tory of the tournament four "B" teams are bracketed with the "A" teams, throwing a large "dark horse" element into the tourney. Two of the B" teams run up against strong "A" competition in their first games while Gard iner and Oakridge will play each other in the final first round game at 9:30 Wednesday night. Wednesday night's program brings together some ef the strongest teams in the tourna ment. Corvallis, champion of Dis trict 7, plays Klamath Falls, Dis trict 3 champ, at 7:30 and Mc Minnville. District 6, meets !The Dalles, District 2. at 8:30. Of the 12 "A" teams on the schedule, eight competed in the tournament last year. Th veter ans are Salem, LaGrande. Marsh field, Columbia Prep, Ashland, Astoria, Klamath Falls, McMlnn ville and The Dalles. Salem has won more state chamnlonshiDS. with four to its credit, than any other team. As- state tltlist three times. Officials for the 'Durnaraent will be Ralph Coleman, Harry Leeding and Emil Piluso. McMINNYILLE, Ore- March 16 -(ff)-Tbe Mill City high Loggers hued their way Into the state high school basketball tournament with a 25-to-20 win over Wheelerhlgh in the district 16 B league-final here tonight. (Turn to Page 2, CoL 1) Graham Cracker Uses Featured This Week In Recipe Contest Graham .cracker recipes are wanted at the Bound Ta ble this week. If yon know , of a tasty spread with which to dress" up these crisp crackers, send that in and tell bow you decorate them for party occasions." There ia no limitation on the kind or number of re cipes submitted, Just so they call for graham crackers in. some form. -Please list all ingredients t first," then de scribe the method and last state how many the recipe ; nerves. .The contest"' closes Thursday noon, March 21. Would ; anyone having a good reclpo for oyster loaf please bring it to The States man office or send ft to the Round Table editor? There has been a request for one and the files from the fish topic of several months ago didnt have just what this housewife wanted.