; . PROTECTION For $1 you can bay travel and automobile acci dent policy from The States man. Claims paid to date by this paper aggregate f6800. THE WEATHER Cnsettled, showers today and Friday, moderate tern . peratare; max. temp." Wed nesday 68, min. 44; river 1.7 ft., cloudy, northerly winds. I FOUMDEP 1631 EIGHTY-FIFTH YEAR Salem, Oregon, Thursday Morning, May 16, 1935 No. 43 HOOVER TIES CUT AT PLANS TO EXTEND ill Complete Abolition is "One Right" Act for Congress, Says Ex-President Avers NRA Crushing Small Business and Preventing New Enterprise By W. A. WELLS (ConTrijrht, 19.15. by Aociatrd Pr) PALO ALTO, Calif.. May 15. (Jf) - Complete abolition of the NRA is "the one right answer" which the house of representa tives should make to the senate's action extending Its life, former President Herbert Hoover told the Associated Press in an interview . here today. "We do not construct new buildings on false foundations, and we cannot build a nation's economy on a fundamental er ror." he said. The NRA has bee crufhing the life out of -small business and "they are crushing the life out of the very heart of the local community body," he declared. In response to a question as to what, in his opinion, congress should do with regard to the NRA, the former president said: "In reply to your question, the one right answer by the house of representatives to the senate's action extending the life of the NRA is to abolish it entirely. New Proposals as Bad As Original Act, Asserts ' Present NRA proposals are as bad, in many ways, as the ori ginal. With its continuation un til the next congress and with federal agents putting pressure on state legislatures to get them to enact state laws in support of NRA, it is evident there has been . no real retreat. "This whole Idea of ruling business through code authorities with delegated powers of law is ' un-American in principle and a proved failure In practice. The, codes are retarding recovery. They are a cloak for conspiracy against the pnblic interest. They are and will continue to be a weapon of bureaucy, a device for Intimidation of decent citizens. "To the customary answer of 'destructive criticism or the other question 'what substitute is of fered?' I suggest that the only substitute for an action that rests on definite and proved economic error is to abandon it. . . . Advises Specific Laws For 'Social Justice "The beneficent objectives of a greater social justice and the prevention of sweating, child labor and abuse in business prac ' tices should be and can be bet ter attained by specific statutory " law. . . . "The prevention of waste in mineral resources should be car ried out by the states operating under federally encouraged inter state compacts. That Is an Ameri can method of eradicating econ omic abuses and wastes, as dis tinguished from fascist regimen tation. . . , "Claiming to cure Immoral business., practices, the codes have - increased them a thousand fold through 'chiseling.' They have not protected legitimate business from unfair competition, but they have deprived the public of the benefits of fair competition. "This whole NRA scheme has saddled the American people with the worst era of monopolies we have ever experienced. . . , Codes Held Depriving. - Youth of Independence "The codes are preventing new enterprises. In this they deprive America's youth of the opportun? itr and the liberty to start and build their independence, and thus stop the men and women of tomorrow from buildiag soundly toward a true social security. "Publishers have had to resist arduously the encroachment of these NRA. codes upon such fun damental, . constitu tionally guar anteed American liberties as free speech.' "The whole concept of NRA Is rooted In a regimented 'economy of scarcity' an idea that increas- ed costs, restricted production and hampered enterprise that will en rich a nation. The notion may en rich a few individuals and help a few. businesses, but it will im poverish the nation and under (Turn to Page 2, Col. 5) . Jury Refuses to Indict in Chain Letter Test Case DENVER, May 15-P)-The carefully prepared test ease -through which the United States government hoped to dam the stream of cash . chain letters flooding postoff Ices throughout the country was dynamited by a federal grand Jury's refusal to-day tp indict three Dencer busi nessmen, . The government contended ff that 1000 "send-a-buck" letters the three men had mailed violated - the fraud and lottery statutes but the grani Jury, after hearing the evidence, reior&fid "not ". true bilL'' ... , This Family Directing Influenza Epidemic Fight Alone, Far North ISA " ,. 1 1" inn r) . , A Ms! fejj n Dr. and Mrs. Henry W. Griest (shown with their son) are directing a grueling fight on the influenza epidemic which has afflicted 300 in Point Barrow, Alaska, killing 15 persons. First calling for life saving "flu" serum to be rushed to that remote city by airplane, they now are asking for pneumonia vaccine. Medical Scientists Fly Toward F lu-RazedCity Two Philadelphia Physicians are En Route to Point Barrow, Hoping to Find Cure for Dread Epidemic Disease SEATTLE, May 15 (AP) Medical science's unremitting battle against the wily "flu germ," cause of oft-recurring epidemics in many parts of the world, finds a new field of action at Point Barrow, Alaska, up on the rim of the. arctic. Sensing the "importance" of any new epidemic, two Phil adelphia physicians, Dr. Horace Pettit and Dr. Sergeant LITTLE HOPE HELD OF EDM STRIKE 35,000 Workers Affected by Lumber Walkouts; Scant Cheer is Offered PORTLAND, May 15. -(-Pacific northwest lumber strike ne gotiations remained in a log jam tonight. Today's developments carried some cheer along with the gloom, but nothing indicated there would be speedy settlement of the walk out directly, affecting some 35, 000 workers. Forty men from the Dubois Mattack mill at Vancouver, Wash., Joined the walkout today, bringing the Vancouver area stri kers to about 550. Only cabinet shops and reail lumber yard3 were free from the strike. Alfred F. Biles, president of the Central Door & Lumber com pany here said his 100 employes were "strong-armed" off the Job by 200 union pickets today. Union officials reported they had "converted the men to the American Federation of Labor," which seeks higher wages, short er hours and union recognition in the lumber strike. TALK DAYLIGHT SAVING he state board of control today will decide whether daylight sav ing hours wili be adopted by state departments. Seventeen depart ments voted unanimously in fav or of the proposal while seven de partments were divided. SEMOX RK-APPOINTED KLAMATH FALLS, Ore., May 15. - - The Klamath county court today unanimously appoint ed Henry Semon, prominent Klamath county farmer and democrat, as state representative from Klamath county to succeed himself. Chase Bank Chairman Flays Proposed Banking Measure WASHINGTON, May Llkening the omnibus banking bill to measures utilized at the time of the destructive German and French inflations, Winthrop Aldrlch, chairman of the Chase National Bank, predicted today that if all its powers were used the "practical value of all social security legislation" could he swept away. In as severe a denunciation of the bill as has yet been made, Aldrich, with several aides group ed about him, told a senate bank ing sub-committee the bill was "potentially despotic" through its centralization of authority over credit and currency in the federal reserve board. The system, he said, would be "set up without check or balance in law and with few restraints in fact" Reading from a prepared state O Pepper, will leave Newark, N. J., by plane late tonight in a dash which should take them to the ,4iebound arctic coast In well un der 100 hours. By air to Seattle, by ship to Juneau, and again by air to Fair banks and Point Barrow, the two university of Pennsylvania bac teriology experts will rush to the scene of the arctiff'-outbreak. They may arrive at a time when the epidemic, believed under control, may be again becoming serious. The epidemic, which has taken at least 15 lives, all but one of them natives, offers an unusual opportunity to gain valuable new information for that long-sought "cure," medical men here say. In addition, Dr. Henry W. Griest, heroic Presbyterian medi cal missionary who has waged a fight with one graduate nurse against the more than 300 cases at Point Barrow, has also mes saged, descriptive of the disease: "Unusually high temperatures prevailed, with cases reaching crisis quickly." Many of the cases also develop ed into pneumonia, he reported, in making requests that pneu monia vaccine be rushed north. B ST WASHINGTON, May 15.-ff)-New tactics designed to achieve a wide distribution of "baby bonds" as a means of combating inflationary demands today were reported by the treasury sales managers. More life was to be pat into the selling campaign by requesting prominent women, including Mrs. Franklin D. Roosevelt, to urge by radio purchases of the "baby bonds," so-called because issued in denominations as low as 25. The campaign was being con ducted by Chester T. Crowell and James William Bryan, financial writers. From Secretary- Morgen- thau they bad Instructions to get bonds in to the hands of as many smaU investors as possible with out conducting a "high pressure drive." ment, Winthrop was interrupted only a few times, principally by Chairman Glass (D. -Va.) who agreed with most he said. "This bill is a measure not of security but of insecurity," Al drlch asserted, "for the, exercise of powers freely granted under it can wipe the practical value of all social security legislation off the slate, and make benefits granted to the aged or the unem ployed mathematical expressions only." He said the bill, by granting the reserve board six powers, in cluding one to "dilute the cur rency" and another to "force the reserve banks to engage in what ever open market operations it may decree," did not liberaUze the reserv system but made it over into an instrument of despotic au thority." - ABf BONDS Ml n IN ID PRUNE BOARD'S ADMINISTRATOR Green Prune Prices Set but Announcement Withheld; Eyes on Washington Light Oregon Crop, Heavy One in California Reported Likely Selection of A. M. Chapman, who owns a farm with prune or chard in the Liberty district south of Salem, as administrator of the Oregon state prune code, was announced by the prune con trol board following a meeting here yesterday. Chapman succeeds R. A. Bailey, administrator since the code was put into effect early last fall, who resigned recently to become man ager of the Springbrook Packing company. The new administrator takes up his duties today. Chap man was for six years prior to 1928 manager of the California Packing company plant in Van couver, Wash. Price Announcement Expected Saturday Prices will be announced for green prunes for canning for the 1935 season not later than Satur day, the control board announced before disbanding for the day. The code prices were agreed upon yesterday but announcement of them was held up to give Wash ington control board members present yesterday an opportunity to confer with packers in that state so the two states might come to a mutual agreement on the code figures for the canning pack. Virtually every canning and dried prune interest in Oregon was represented at the session yesterday afternoon, with the board hearing a detailed expres sion of opinion on the prune in dustry prospects and conditions from the canners and packers. Assurance Given No Late Change Expected At the outset of the meeting, some packers expressed desire that setting of the code prices be deferred until a later date, this being explained later as due to thought, that the board might change the price later in the sea son. On assurance by the board that no change would be likely, once the price is announced, ob jections to an early setting of the price were withdrawn. If the price should go above that set by ?he board, this situa tion would be taken care of by supply and demand and so would not work to detriment of packers, Max Gehlhar, former director of agriculture who Is now opening his own Oregon Fruit Products company here, pointed out. California Crop to Offset Oregon's Indications at the present time point to a light prune crop in Ore gon, and considerably under last year. However, Robert Paulus who has just returned from a trip through California pointed out that California prospects are for a very heavy prune crop, thus off setting the estimated light deal in this state. Walter J. Robinson, director of agriculture for the state of Washington, in Oregon yesterday on business from Olympia, said that while all Codes in that state are somewhat in the air due to legal controversy over the state marketing law, there is high hope that the 1935 law will be declared constitutional by the supreme court. Washington Talking 6 Centa, Strawberries Robinson also said while here that strawberry growers in that state have an idea of 6 cents p pound on Marshall berries, bu. that this has been talked without consulting the packers. Glen Hogg, Polk county orch ardist, presided at the sessions yesterday. LAND VALUES HEBE RISE 40 PER CENT Land values In the WlllrTiette valley have risen 40 per cent since last November, was the declaration of Dean W. A. Schoen feld of the department of agri culture at the state college, who was a caller at the capitol yes terday. As director of the Federal Land Bank of Spokane, he comes in contact with prices of lands. "The Spokane land bank has very little desirable land left," said the dean. "Most of our good places have been sold. The Spo kane bank is in the most favor able position of any of the hanks as regards delinquencies and the Willamette valley is at the top in the Spokane territory. We ob serve from the monthly reports that taxes are being paid now and in. some counties there are no de linquencies at all, on lands on which the hank carries the mort- gage.' World News at a Glance (By the Associated Press) Domestic: Palo Alto, Calif. Former Pres ident Hoover urges quick death for NRA. Washington Hour wage rates slashed 30 per cent under tenta tive wvrk relief plans; Roosevelt yet to approve. Washington Secretary Hull serves world notice U. S. ready to stabilize. New York Edward Johnson, Canadian born tenor, named new Metropolitan opera head. . Washington Winthrop Aid- rich, Chase National banjr' chair man, flays banking bill; likens it to measures In destructive Euro pean inflation. Chicago Rains wash away corn belt blues, brighten small grain prospects in midwest. Washington Treasury pushes baby bond" Bales campaign as means of combating inflationists. Atlanta Wets and drys In close Georgia repeal vote. Washington S e n a t e scraps over farmer Invasion for AAA boost; Wallace "welcomes" inves tigation. Springfield, 111 Illinois relief crisis sharpens as legislature deadlocks fourth time on state sales tax increase. NEW YORK Johnker diamond bought by American for "over 1700,000." Washington Wagner labor dis putes bill starts through senate; Wagner declared NRA alone un able to save collective bargain ing. Foreign: Rome National press demands Italian control of Ethiopa; Eng land reported ready to Ignore Duce's "hands off warning for sake of peace. Berlin Italian-Ethiopian dis pute anticipated to be ammuni tion for forthcoming Hitler speech on foreign policy. Lima, Peru Peruvian publisher-statesman assassinated by student; wife slain shielding hus band's body. Moscow Franco-Russian drive started to bring Germany and Po land into general European non aggression pact. Warsaw Pilsudski's body lies in state as nation mourns leader; national services set for Saturday. Manila, J. I. Three city offi cials and fourth person shot to death in outbreak; authorities blame 'communist terrorism. Y Hofstetter, Rhoten, Savage and Sheridan Named for Marion County Following presentation of pur pose and aims of the Associated Dairy Industries, Inc., recently or ganized in Portland, to a group of about 30 persons representing all phases of the dairy industry, two directors to represent Marion county on the state board of the new group were selected: E. A. Rhoten, producer, and William "Bill" Sheridan, dealer. Two other Marion county men, W. E. Savage of near Salem, producer-distributor, and Hans Hof stetter, of Curly's Dairy, Inc., were named Marion county repre sentatives on the market mil com mittee, the first committee ap pointed under Associated Dairy Industries. Officers Outline Organization's Aims Explanation of the new organiz ation was made by O. G. Simpson of the lear Creek creamery at Oregon City, state president: Levi McKee. Perrydale, state secretary (Turn to page 2, col. 1) S E Ernest Womacr, charged with assault with intent to kill, was arraigned in circuit court here yesterday having waived indict ment by a Marion county grand jury. The court allowed Womack additional time in which to enter his plea. Womack Is accused of shooting Richard Shank, employe of the Tom Mix circus, following a per formance here Monday night. May 9. Shank was critically Injured but was reported yesterday at a local hospital to be greatly Im proved and quite certain to recov er. Womack Is being held In the county jail here nntil his case Is disposed of. He and Shank are said to have nursed an old grudge and, when each became intoxicat ed, to have started a fight which ended in Womack's firing a pistol at Shank, a bullet from which wounded the latter. Judge L. H. McMahan sus pended sentence on Charles D. Brons, local youth, who waived indictment and pleaded guilty to burglary not In a dwelling. Brons attempted to enter the Elmer Wetzel service station en North High street early in the morning of May 12. The court said the sus pended sentence would be oper ative only as long as Brons behav ed himseLt- " v.: DA INDUSTRIES DICK CHOSEN Ml 1 OF ASSAULT STATE UPHELD IN FIGHT OVER RAZING CAPITOL Lewelling Refuses to Make Temporary Injunction Permanent One Appeal Indicated but is Not Believed Likely in Time to Halt Work Legal barriers to razing of the old capitol walls were toppled yesterday by Judge L. G. Lewell ing, who refused to make per manent a temporary injunction against the state board of control granted May 8 when four mem bers of the Marion County Tax payers' League asserted they were being irreparably damaged by the destruction of the old building. The court's technical reason was found in the fact that the plaintiffs Henry Zorn, Edwin A. Jory, Martin Rostvold and Wil lard Stephens had not shown that they were any more damaged than any other taxpayers in the state. If proceedings were proper ly brought. Judge Lewelling set out, they would be through the district attorney's or attorney general's offices, on the relation ship of all taxpayers to the board's proposed action, not the relationship of a specific group. Restoration Art Authority For Removing Old Walls The court went further, how ever, and effectively blocked the way to further litigation by de claring that such a proceeding, if brought, would lose on its merits since the state restoration act gives the state board of control full power to remove the old walls as a preliminary to restoring or replacing the statehouse struc ture. Members of the board of con trol late yesterday expressed themselves as highly pleased with the decision. The board, while it did not meet yesterday, is known to be unanimously in favor of tearing the old walls down as fast as the SERA crews now at work on the capitol can handle the Job. F. G. Leary, builder-wrecker in charge of the job, plans first to remove all debris from the interior of the building to facili tate trucks getting into the struc ture to remove bricks when the walls come down. It will be a matter of a week to 10 days before the demolishing of the walls can begin. When the walls do come down, a cable will be attached to the walls and with the aid of a winch, they will be pulled towards the interior of the old capitol, the bricks loaded in trucks and hauled away. Appeal Believed Effectively Blocked While B. S. Martin, one of the plaintiffs' attorneys, announced orally in court yesterday that his (Turn to page 2, col. 1) Young Nurse is Freed, Part in Extortion Plot SEATTLE, May 15-)-Mi8S Dorothy Flower, 22 - year - old nurse and daughter of Dr. and Mrs. T. J. Flower, of Milton, Ore., was freed today by Federal Judge John C. Bowens of charges of us ing the mails to extort money. She was indicted with Dan T. Kid well, 23, who was sentenced to six years at the McNeil island penitentiary six weeks ago on pleading guilty to such charges. He was accused of sending ex tortion letters to rooming house proprietors. Assistant U. S. Attorney John Ambler said that Miss Flower was innocent of any criminal Intent In aiding Idwell, a man she was nursing in a hospital here at the time. 545 Seniors Are A pprovedFor High Graduation June 7th Three hundred and forty-five seniors of Salem high school were certified for diplomas yesterday by Fred Wolf, high school prin cipal, while the status 'of seven more members of the class of '35 was kept in abeyance until the high school administration could determine whether or not they would meet graduation require ments before the school year ends June 7. "We will not have as large a graduation class aa we did in 1934," v Mr. Wolf stated. "A number of members of the class worked in the CCC camps last summer and winter and took oth er Jobs In order to help with the support of their families. This re duced the normal graduation num ber considerably. Busy Program Bet For Final 'Week ' Plans for the commencement exercises of the school are nearly completed. Baccalaureate services will be held Sunday, June t, at 11 a. to. in the Elslnore theatre, which provides the only auditor- inm In the city, large enough to ac Work Relief Be30der frivaie Hourly Rates, Reveal : ; , o 4 BOND SALE PROGRAM TOPIC FiTIGHT Conference Scheduled When City Learns Bid for. Water Plant Okeh Tonight the City of Salem will move another step nearer its ac quisition of the OregonTWashing ton Water Service company's plait here when the council's committee on ways and means and on utilities will meet with Mavor V. E. Kuhn and Citv At torney Chris J. Kowitz t- draft a bond sale ordinance to be pro posed to the council when that body meets next Monday night. Fred E. Paulus. deputy state treasurer, will attend the confer ence and advise the councilmen In the drafting of an ordinance which will nrovide the most ad vantageous returns to the city from the sale of its water bonds. Decision to hold the conference tnnlzht was made yesterday by Mayor Kuhn upon receipt of tele graphic word from McLutcnen, Olney, Mannon & Greene, San Francisco attorneys for the water company, that the trustees for the bondholders in New York City had formally accepted the city's proffer of $1. 000. 000 for the wa ter plant. The directors of the Oregon - Washington Water Ser vice company accepted the city's bid May 7. As soon as the city can sell its bonds and provide therefrom cash funds with which to purchase the plant, the deal can proceed. The pending suit in condemnation, be gun September 24, 1934, in fed eral Court, will be dropped by the city and judgment of $1, 000,000 confessed in favor of the water company. Vandevort Uncertain -About Injunction Salt Only barrier to the transaction is a threatened injunction against the sale of the bonds of the city, brought by Henry H. Vandevort, alderman, who has fought the purchase of the plant. "I still have the suit under considera tion," Vandevort said yesterday. He did not indicate definitely whether be would seek to enjoin the council from selling the bonds when bids were called for. The committee's meeting to night, in addition to deciding how long the term of the bonds the city proposes to issue will be, will also consider how much money must be raised by the bond issue for working capital for the plant. Provisions must also be made for moneys with which to pay legal costs heretofore incurred in ne gotiating for the water plant and in the condemnation suit. The charter amendment which author ized the purchase of the water plant and the issuance of bonds, provides that none of the bonds shall be for les sthan five years or more than 40 years. David O'Hara heads the ways and means committee, Walter Fuhrer heads the utilities com mittee. A number of bond buyers have already made inquiry about the issue the city will put out for its water purchase. PWA Allots Amity $24,000 Project AMITY, May 15. Mayor J. D. Woodman has received informa tion that ft PWA loan of 124,000 has been granted the city of Am ity to improve its water system. Amity has a gravity water sys tem. This loan will enable the city to put in all iron pipes. commodate the class and the mo thers and fathers of the gradu ates. Rev. H. C. Stover will give the sermon. Commencement exercises will be held Friday, June 7, at 10 a. m. in the Elslnore theatre. Dr. Brnce Baxter, president of Wil lamette university, delivering the address. Thursday night, June C, the annual senior banquet will be held at the Masonic temple; the nnual Junior-senior will ,be' a post-commencement event it the high school gymnasium the night of June 7. Class instruction In Salem high school will he completed Wednes day, June 5, Mr. Wolf said. Teach ers will complete the reading of examination papers and the deter mination of grades Thursday and Friday, with final reports being given out Friday afternoon, Jane 7, after commencement exercises have been held. The graduation list of seniors, thus far approved for diplomas, follows: 4 , .(Turn to page 2, coL S) 1 Wages to May Vary From $16 to $96, Different Areas, Said Schedule is Submitted to Roosevelt for Approval (Cnprrirht, 1935. hy Associated Ftasa) WASHINGTON, May 15. A basic framework for labor's wages under the $4,000,000,000 work program, calling for a 30 per cent slash in prevailing hourly rates on construction jobs, to night was disclosed to have been drawn tentatively for White House approval. Emphasizing that President Roosevelt has yet to approve the setup, a high official who would not permit use of his name, said monthly payments were expected to vary from $16 for unskilled labor in the south to 196 for a skilled workman in New York city. Average to Exceed $50 per Month The average, he said, would exceed the 1 50 a month "secnr itl" wage on which the work pro gram was planned. It compares with a monthly average of $29.50 on jobs now conducted under the relief administration on which prevailing wages are paid but only enough employment given to meet a worker's family relief needs. Still undetermined In the tenta tive schedule were the monthly al lotment of work hours to labor and the total cost of labor's share of the outlays. Detailed wage re gulations were expected to be submitted to the White House shortly by Harry L. Hopkins,' works progress director!; Workers Will Be Classified, Says -a The authoritative official said present plans called for three classifications of workers, with graduations in pay. 1 Separate wage schedules would? be pro vided for the six major regions, still undisclosed, into which the country has been divided. In some quarters it was said the new wage scales, which are to apply to all relief jobless with the exception of the civilian con servation corps, will be modified to fit conditions in 320 work areas already marked out by Hop kins. A survey of the cost of liv ing for low income families la 69 representative cities was to be completed shortly. Four Killed By Terrorist Shots, Isles MANILA, May 15.-iiP)-Three city officials and another person were shot to death today in what authorities called an outbreak of communistic terrorism in Lagona province, scene of the bloodiest fighting in last week's pre-pleb-iscite Sakdalista revolt. The trouble started, officers said, when a band of commuaists roaming the bills near the village of San Antonio shot and killed one person. A group of officers went to investigate and three ot them were shot down. The ether dead were the acting Tillage chief of police, the municipal vice-president and a policeman. - News of the slaylsgs reached here as the counting continued on yesterday's balloting in which tbe Filipinos voted overwhelm ingly to accept a commonwealth form ot government for 10 years pending complete independence. Latest totals were 1.157.9CS in favor of the commonwealth sys tem snd 39,920 against. The constabulary; which had taken extraordinary precautions to preserve order during the f ot ing, began a widespread search for tbe asserted communists. BONUS VETO SAFE . WASHINGTON, May HHJP) Senate administration leaders maintained today they were hold ing plenty of voting strength to sustain President Roosevelt's ! prospective veto of the Patman bonus bilL despite recurrent re ports that Vice-President Gamer was advising senators to override, the chief executive. . The Texan, : who favored' the bonus before he became President ' Roosevelt's running mate, refused . to comment on the reports, but senate leaders said he denied to them that he was offering such advice.;':;--- :rV - - ' - . Garner pointing ont to Inquir ing newspapermen that. he never commented on issues before the senate even when his . name be came involved., v FDR AIDES ASSERT