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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (June 25, 1935)
It COLORED COMICS Today's Statesman' offers foa foar fall pages of com ies, two ia colors; a feature of each Sunday Issue of this paper. ; THK WEATHER Fair today and Wednes day, rtiiag temperature; Max., Temp. . Monday . 74, ; Mia." SO, river " .1.2 feet,', partly cloud-, northerly winds. " . - . rs77ff FOUMDOP: I8S1 EIGHTY-FIFTH YEAR Salem, Oregon, Tuesday Morning, Jane 25, 1935 No. 77 BOMBS HURLED AS GUARDSMEN CLEAR STREETS No Serious Casualties Are Reported in Strikers' Skirmish, Tacoma ; .Longshoremen Won't Han dle Cargo;, General Strike Talk is Prevalent TACOMA, Wash.. June 24-(jPr Hurling tear gas bombs and ad vancing with fixed bayonets, na tional guardsmen cleared- the streets of thousands of spectators and lumber strike sympathizers today as lumber plant workers returned to their jobs under state protection. No serious casualties were reported. The first day of national guard activity here,- a leading lumber center, saw numerous spectacular although minor en counters. Tear gas - bombs were ised on three occasions to clear the streets. Tonight, the central labor council called a special meeting, as rumors of a general strike were heard over the city. Earlier in the day, members of the longshoremen's union voted to refuse to work as long as armed troops remain in the city, bringing all work on the water front to an abrupt halt. Will Keep Troops There Indefinitely Brig. Gen. Maurice Thompson, adjntant general,' also announced that the entire 161st infantry. 1079 strong, one battalion of which was- brought ' here last n!ght to keep the pledge made by Gov. Clarence D. Martin to protect all men returning to work, will be kept under arms Indefinitely .for emergency duty. The climax of the day came about 5:30 when orders were is sued to disperse the thousands gathered along IJjQ Sr9&ridge near. Pacific avenue, ;"vT.. . State patrolmen led the ac tion to clear the streets hurling tear bombs freely. Hundreds, sur prised by the' suddenness of the onslaught, fled in all directions, gasping and weeping copiously. The patrolmen were backed up by sqtfads of guardsmen, who ad vanced at a dog trot with fixed bayonets, but strike sympathizers and spectators alike were in no frame of mind to offer resistance. All were "going places" as fast as their legs would carry them. Within 15 minutes the 11th street bridge across which work ers at the mills had come 6n their return from work, was a picture of complete peace and quiet. Fifteen Arrested As They Incite Mob About 15 belligerent members . .(Turn to page 2, col. 4) timliiliii FOUND, ITluSKA ANCHORAGE, Alaska, June 24. ... Four hundred Anchorage residents joined in an excursion to Palmer, headquarters for the Mat anuska colonists yesterday and found little discontent among the settlers. . Practically all the settlers are content' with their lot. Anchorage residents said, 'the chief anxiety expressed being concerning con struction of adequate houses be fore winter comes'. Gardens all have been planted and crops are already beginning: to' sprout rapidly in the warm summer sun. Timbers have been laid for less than a dozen homes, so far, and construction will have to be rush ed, the settlers asserted. Anchorage residents urged the appointment of competent Alas kan foremen at each of the nine temporary camps where the col onists have been quartered to ex pedite the building of the log houses. . The colonists hare a new cause for discontent as a result of the excursion, however.: The Anchor age baseball team won a game from the construction camp team. Relief Purchase Of Grain Sought, None is Offered PORTLAND, Ore., June 24.-fls) The state emergency relief ad ministration entered the market today to buy Oregon holdoyer wheat for relief distribution, but none was offered. , . The price indicated was 75 cents a bushel, basis Portland or Puget Sound terminals, for U. S. No. 1 grade of wheat. ' Private firms were bidding the same price and farmers evidently had hoped the government would pay more. -With the grain section of the AAA assisting, the FERA plans to bur 18.0 00 bushels In Oregon, 1,500,000 bushels ia Washington and 800,000 bushels in Idaho. The wheat is to be milled tor distri bution In the middle west. Seven Portland Mills To Reopen Wednesday; Protection Promised - ' Insistence on Union Recognition Guaranteed In Writing Principal Hurdle as Peace Offer of Operators Left Open PORTLAND, Ore., June 24T. (AP) Seven Portland saw mills will reopen Wednesday morning despite the lumber men's strike, operators announced tonight following a confer ence with Governor Charles H. Martin who pledged troops' protection if needed. Following the anno-jncement of the operators, A. W. World News at a Glance (By TharAsssociated Press) Domestic: . . Washington - Congressio n a 1 leaders after conference with president agree to add "spread wealth" taxes to extension of "nuisance" levies for quick pass age. Patterson, N. J. Gangsters seiz ed in roundup named In 8427,000 armored. car holdup and Vincent Coll slaying. Washington Senate passes Bankhead bill financing share croppers. Tacoma Mrs. Waley's kidnap trial set for July 5. i Jasper, Ind. Boy kidnapers of sheriff escape life terms. Washington U. S. spends $3, 500,000,000 above yearly income. Manchester, Ky. Hill feud claims third life in week. Washington Vanaenberg calls Alaska scheme "crazy". New Orleans Mayor accuses Long of causing garbage workers' strike. Foreign : Bogota, Colombia Seventeen killed in two-plane ccasb. Rome Musssolini seeks Ethi opian protectorate free from league. Geneva League reports half billion dollar world arms bill in crease. Peiping China concedes Jap an's dominance of Chahar. Bucharest Foes of Carol gain support. ILL PORTLAND, Ore.. June 24.-(J -The Oregon national guard 3100 strong will parade through Portland tomorrow afternoon en route home from annual summer encampments. The guardsmen will break camps in the morning and arrive in Portland about noon. The pa rade will start at 2 o'clock from the armory at Northwest Tenth avenue and Couch street and make a loop across to Sixth, then south to the new post office, back down Broadway to Burnside and up to the armory where the men will disband. The 249th coast artillery com pany, which has been training at Fort Stevens at the Columbia river mouth, will be here to Join troops from Fort Lewis, Wash. Brigadier General Thomas E. Rilea, commander of. the Oregon national guard will be in general charge of the parade. . The 612d and 186th regiments of the infantry and the 218th field artillery together with the 167th fielcLhospital company from Lebanon are the units from Fort Lewis which will display their im plements of warfare. Major General George A. White, Pacific northwest commander of the national guard, will review the parade. On his reviewing stand at Southwest Broadway and Alder will be state and city offi cials as his guests. WII1S 'i 1 TUI A lloculion of Road F urids Scheduled at Meet Today The state highway commission convenes in Salem today to make tentatiTe allotments of approxi mately 1900,000 of the federal state moneys which are available for the 1935-1936 highway year. The projects the commission will place on the highway contract list for the coming year will mark the first of the next year's program definitely determined npon. For the past 60 days the commission has held back its construction plans pending more detailed word from Washington as to the mon eys available and how they must be spent. v Yesterday the sums available to the state in the fiscal year begin ning July 1, appeared as follows: - From the so-called federal aid moneys provided under the Hay-den-Cartwrlght bill, 2.044.000. With this money the state is re quired to provide match funds on a 2 8-6 2 per cent basis. The state's share will be ,1,656,000 and R. H. Baldock, state highway engi neer, said yesterday that a three per cent Increase in highway rev enues bad made it possible for the Muir, spokesman for the Sawmill and Timber Workers' union, said he was "still hopeful for a settle ment." The employers 6ald their four point offer made Saturday was still open. It called for a 50-cents-an-hour minimum which repre sents an increase of from 5 to IVi cents an hour, a 43 -hour week as before, no discrimina tion against old workers and will ingness to meet employe commit tees for bargaining on wages and hours. They would not, however, dicker with representatives of any other than their own workers. Portland strikers met tonight, with their leaders indicating they would insist on vritten guaran tees of collective bargaining be fore ending their strike. Frank Johnson, executive sec retary of the Portland local, said the men would not be stampeded into accepting a disadvantageous settlement inasmuch as the Wag ner labor disputes bill probably will become effective soon and change the strike complexion. Picket lines at mills were slightly trengthene" today and few applied for work at the new 50-cent minimum. However, operators Bald appli (Turn to page 2, coL 2) FOURTEEN KILLED AS Noted South American Film Star and "Lindbergh of Colombia" Victims BOGOTA, Colombia, June 24.-(P)-Fourteen persons died today in the flaming wreckage of two planes which crashed at an air field in Medellin, 200 miles north west of here. The victims included Carlos Gardel, South American movie player, and Ernesto Samper, known as "the Lindbergh of Co lombia." According to one version of the fatal crash, the plane piloted by Samper, taking off in the wind, crashed into another craft, owned by the Scadata, a German firm. The dead were reported to be: Samper, Gardel, Mechanic Billy Foster, Henry Swartz, Jose Agul lar, Jose C. Moreno, Celedonio Palacios, all in Samper's plane and comprising Gardel's party; Pilot Hans Ulrich Thorn, Co-pilot Fu erst, Lester W. Straus, and four Colombians, all in the Scadata plane. Samper's plane was owned by the South American and Co lombia air lines. Crowds of Gardel's friends and admirers were at the field when the planes collided and burst into flames. Among the injured were Alfre (Turn to page 2, col. 1) Bankhead Bill Goes to House WASHINGTON, June 24.-(P)-The highly controversial Bahk head bill, to use government money for financing tenat farm ers and share-croppers in the pur chase of land and homes, was passed today by the senate and sent to an uncertain future in the house. state to provide the necessary match funds. In addition to thlij total of 83, 600,000 for new construction from federal and state moneys, the federal government has allot ed 15,372,000 in additional high way funds for the stale's use. Ap proximately 83,000,000 will be direct relief work through the highway department .while an ad ditional sum of 82,300,000 will be set aside for grade crossing elim inations. r- Neither of the last two items can be definitely allotted by the. commission until Washington sends its rules under which the money can be spent. The state highway department knows that a large portion, of the work most go to labor and that workers must be taken directly from the pres ent relief rolls. . These require ments will necessitate spreading the projects throughout the state. - The highway i department : ex pects to utilize its own funds and its so-called federal aid funds to do projects where the material (Turn to Page 5, CoL 8) MS CRASH MINISTERS ARE ARRIVING RERE FOR MEET Conference Examinations to " Start This Morning at . Willamette' Formal Organization is Set For Tonight at First Methodist Church Vanguard of the Methodist min isters from every Oregon charge arrived in town last night, and this morning scores will come for opening of the 83d annual con ference of the Methodist Episcopal church in this state. Sessions will be held at the First Methodist church sanctuary, with Bishop Ti tus Lowe presiding. Dr. James E. Milligan is host pastor. Conference examinations will get under way at 9 o'clock this morning at Willamette university, where all committees of the con ference will meet, as well as the lay session which convenes Thurs day afternoon for three days. Ministers will be assigned to their places of entertainment this afternoon and at 4 o'clock the board of ministerial training will be in session. The conference will be organ ized at 7:30 o'clock tonight, and following roll call Bishop Lowe will give the communion address, with Dr. Milligan and the district superintendents to assist in ad ministering the holy communion. The district superintendents are Dr. Louis Magin, Salem district, Dr. Thomas D. Tames, Cascade district, and Dr. J. C. Harrison, Portland district. Taylor to Deliver Memorial Sermon Wednesday morning at 9 o' clock, Rev. Fred C. Taylor of the Rose City Park church, Portland, formerly pastor of the First church here, will deliver the me morial sermon. At this service Rev. A. G. Bennett of Forest Grove will preside. Worship at 8:30 Wednesday morning will be conducted by Dr. Bruce Baxter, president of Willamette univer sity. A feature of the Wednesday morning service will be first bal loting for the ministerial dele gates to the general conference. The conference continues through Sunday night, with main speakers including Bishop Lowe, Dr. Clarence. True Wilson of Washington, D. C, Dr. E. D. Kohlstedt of Philadelphia, Rev. W. W. Bell, an M. E. missionary to India, Dr. King D. Beach, pas tor of the First M. E. church at Tacoma and a recent arrival to the West. from Baltimore, and Dr. Baxter. ASTORIA, Ore., June 2i.-JF) Chris Paulsen of Vancouver, Wash., was shot and critically wounded here today as the climax to an argument in a small water front eating house. James Stookes, 46, proprietor of the restaurant, went to the courthouse and surrendered as the gun wielder. District Attorney Willis West said. Stookes was held in county jail pending investiga tion. West said that witnesses de clared the pair quarreled violent ly and Paulsen threatened to break Stookes neck. Stookes grabbed a gun from under the counter, it was declared, and fired five shots, three of which hit Paulsen in the head and neck. Paulsen was taken to a local hospital where physicians said his chances of recovery were slight. Stookes refused to make a state ment about what the men were quarreling. Police said Stookes and Paulsen both have records involving liquor charges and that several years ago Stookes served a sentence at Mc Neil's Island on a liquor violation charge. E OFFERED Df CITY By unanimous vote, the council last night approved a resolution conveying Waverly avenue, be tween Court and State streets, to the state as a portion of the capi tol grounds, should the property be desired. The council's action was taken subject to a legal opinion by the city attorney, set ting forth the right of the city, nnder the terms of the original Willson -deed, to convey the property to the state. The council ordered that Its action be reported at once to the state planning board., r ; Waverly avenue - is only one block long. Its principal use' for years has been as a parking place for state employes' cars. While it connects Court and ..State streets.' the avenue .is j mot as greatly used as. 12th street. RESTAURANT OWNER IS CUSTOMER we Former Pastor At Conference mmmmmmmmmmmmmmmmmmmdmmmmmmomwmmusi JfT- J Rev. Fred C. Taylor, pastor of the Rose City Park M. E. church, Portland, formerly pastor of the First church here, who will ap pear on the M. K. annual con ference program Wednesday morning. E Several' Big Deals Wound Up Following Announce ment Code Agreement First loganberries of the sea son were'eomlng in for local can neries yesterday, with probably one of the largest packs here, 400 tons, to be handled by Hunt Brothers. This cannery Is mak ing all its purchases at the code price of three cents per pound, except for 5 cents which will be paid on a number of term con tracts, some of vhich carry for two years more. Hunt's cannery is also running heavily on Royal Anne cherries now, with 600 tons of cherries to go into cans at this plant, which is also finishing up the Etterburg deaL The entire straw berry deal will be concluded in all local canneries this week, both on barrelling and canning. Black cherries for canning will start early next week. Relative to the loganberry deal, which centers here inasmuch as the bulk of the approximately 2, 5 00-ton production In the state this year Is found in Marlon county, announcement was made yesterday that the Salem Logan berry association sold its pool of about 100 tons to R. D. Bodle company of Seattle at the code figure. The Hubbard pool, 50 tons, was sold yesterday at 3 cents to the Starr cannery. Earlier in the season, several local canneries went Into the field, contracting logans at 24 cents Per pound, which contracts bind the grower, inasmuch as the bulk of them were signed prior to Tuesday, June 18, at 3:30 o'clock, the date on which the marketing agreement became effective. No price has yet been estab lished on red raspberries, in spite of figures being quoted locally, according to Ralph Alleri, direct ing the buying for Hunt Broth ers. Allen was In Portland and Gresham Monday afternoon and no price had been established at Gresham, which. pool controls the figure for the deal. In fact, Gre sham growers had not even come together up to yesterday after noon to discuss the price. Bulk of the red raspberries coming into the Salem canneries are pur chased in the Gresham field. WERNER STAYS ON Ernest Werner, chairman of the non-high school board of ed ucation for Marlon county, was re-elected to a five-year term on the board, official canvass of the election of June 17, revealed yes terday. Werner received 354 votes. A. E. Kuenzi, other nom inee, received 150 votes. Each man resides in the Central How ell district Twenty-seven districts in the county took part in the vote. Following the canvass of the vote, the board named C. A. Rat cliffe as chairman for the coming year, Eugene FInlay of Jefferson was named vice-chairman and Mrs. Mary L. Fulkerson was nam ed secretary. The board spent Monday af ternoon auditing bills for the 1934-1935 3 school year. As soon as the board has checked the bills and approved them, warrants will be drawn on the non-high school district fund for paying the bills which are to various high schools in the county. The tuition charges are estimated td total. 850,000. The board's warrants will not all be paid in cash, at once by the county treasurer as cash on hand for the board's account was only J 18,8 8 8 early this month. . RIOT VICTIM DIES EUREKA, Calif.. June 2i.-P) -Harold Edlund, 35, one of 10 persons ' wounded in the lumber strike riot here last Friday, died in the '.umboldt county hospital tonight. LOGANBERRIES HTM EDUCATION BOARD SHIRE WEALTH TAXES ILL BE VOTED ON NOW Leaders Decide to Attach Them to Nuisance Tax ; . Bill Now Pending Congress Will Stick Around Until Issue is Decided - Harrison Indicates - By D. HAROLD OLIVER WASHINGTON, June 24.-)-President Roosevelt tonight call ed for Immediate enactment of his "distribution of wealth" pro gram by attaching heavy taxes oa big incomes and large inheritan ces to the pending nuisance tax resolution. At a two and a half hour White House conference, which extend ed from teatime nntil the dinner hour, Mr. Roosevelt discussed the problems .involved with the key men of congress, Their decision to hitch the president's program onto the $500,000,000 nuisance tax mea sure now pending before the sen ate caused considerable surprise among capital observers. These taxes expire June 30 unless legis lation Is enacted to prolong their life. Thus time was short, so short in fact, that to man it seemed impossible the new taxes could be pushed through the congressional mill within such a time limita tion, v Announcement Made Afttr Conference The congressional chieftains emerged from . the White House to find the portico jammed, with newspapermen. Vice- President Garner joshed his way through to his limousine and the report ers turned to Senator Robinson, the democratic leader, for a state ment. He was quick and crisp. "At a conference attended by the vice-president, the speaker of the house, Chairman Harrison of the senate finance committee, Chairman Doughton of the house ways and means committee, and myself," he said, "it was decided to press action on the recommen dations of the president pertain ing to amendments to the tax laws at the present session. "Chairman Harrison will ask his committee to call the subject up with a view to adding the amend ments to the Joint resolution ex tending the emergency taxes." Congress Will Stay Until Action Taken From Harrison, reporters glean (Turn to page 2, col. 1) 116- E IS FILED PORTLAND, Ore., June 2 4. -(5s) Robert E. Mullen, 53, insurance man, was arrested today on a contempt of court char.- alleg ing he attempted to influence a juror. He was released on bail of $500. When Informed of the reputed attempt, Circuit Judge Jacob Kanzler ordered a mistrial of the personal injury damage action brought by Thomas E. Cosgrove to collect $50,800 from H. J. Tca cey and Doree Tracey. E. A. Nicholas, a juror in the case, said Mullen called and told him . not to let sympathy tor the plaintiff get too much of a hold on him. "The plaintiff In the case has been a heavy drinker for the past five or six years and if he had not been such he accident would never -have happened," Nicholas quoted Mullen as stating. An affidavit by Lydia M. O'Bryon, attorney, who said she listened in on the telephone con versation, substantiated Nicholas accusation. Tl Annual Bargain Day. Looms; Many Stores Participating Ardent bargain-seekers of Sa lem and the country round will have an opportunity to satisfy their wishes to- the utmost Friday when local merchants cooperate to offer the 18th annual Salem bargain day. . As the largest merchandising event of the summer. Bargain day is a time when local storekeepers vie with each other in pinning the season's lowest price tags on late spring and early summer goods. As in previous years, stores of ficially participating in Salem's bargain day - will . be marked by yellow and blue cards displayed In their windows. Inside, particular bargain day items of merchandise will bear price-tags printed in the same colors, and with the designa tion "Official Bargain Day Spe cial," on them. To assist Salem housewives, the Oregon r Motor - Stages will . run their incoming street busses "free of charge between 10 a. m. and noon, as their particular "bar gain. - But bargains are not all. Salem merchants, particularly those in mm no SALE CLOSES 0 1 ' ' BIG WATER DE Issue of $1,100,000 , Sold to Five Investment Houses At Interest Rate Averaging Slightly Below 34 Per . i Cent; Premium of $441 Paid With Bonds of Longer Term at Lower Rate Than Early Maturing. Block Actual Transfer of Water Plant to City Expected to Occur Within 30 Days; City Officials Pleased at Excellent Tepflis Marking Rapid Improvement, City Credit and Securities Market THE City of Salem sold $1,100,000 of its general obligation water bonds last night at an average interest rate a shade below three and one-quarter per cent a year. The sale was the largest in the history of the city "and despite the maturities of the bonds, which range from five to 30 years, the interest rate equalled the low figures which have prevailed the last three months on Salem obligations. Purchasers of the bonds were a group of five investment houses headed by the First Boston Corporation of Boston, Mass. Affiliated with that company was Eldredge & Co., .The First Security Co., E. M. Adams & Co., of Portland, and Con rad, Bruce & Co., the latter firm being the only one of all the bidders which has off ices in Salem. Six bids were offered for the bonds, a total of 24 differ- Ifi WASHINGTON, June 24.-p)-A resolution demanding a senator ial" investigation of the wool in dustry was introduced today by Senators Stelwer (R-Ore) and Ad ams (D-Colo). The resolution called for the appointment of thrqe senators by the vice president to investigate the production, transportation and marketing of wool and asked that a report be, submitted to congress next year. The committee would be authorized to hold bearings on the subject. The resolution was prompted, Steiwer said, by reports of alleged abuses of consignment shipping by wool dealers in not maintaininta balance between .their own stocks and stocks received on consign ment. There have been complaints that some dealers were disposing of all their wool before selling any of that consigned to them by farmers and other producers. Woman Suffers Severe Injuries As Cars Collide Mrs. Helen Taylor, 1825 North Liberty street, suffered a frac tured shoulder, cuts and' severe shock as the result of an automo bile collision at 15th and Trade streets at 8 o'clock last night in which her son, Ben, and George Grabenhorst, Jr., 110 East Myers street, were the drivers. She was taken to Salem Deaconess hos pital. Young Taylor, whom city po lice arrested on a charge of driv ing without an operator's license, complained of back injuries and minor cuts but wastot sent to a hospital. The crash demolished the Tay lor car, a light sedan, and bent the front bumper and one wheel on the heavier Grabenhorst machine. the bicycle business, will also sponsor bicycle races and a bicycle costume parade, to take place in a roped-off Court street area, be tween High and Commercial streets, starting, at 10 a. m. Races will include one tor boys under 12, and another for lads be tween the ages of 12 and 16. Girls too will pedal down the course, subject to the same age. regula tions. - With two boys to one bicycle, a relay race will be run from the Commercial street starting mark to High and back again, Girls won't get in on this one. Probably the most excited; yell ing will arise from usually jstaid Court street sidewalks when boys of any age bestride their trusty steeds and take along their dogs in tow. The idea is to get the dog and the bicycle and the rider over the finish line as nearly in a unit as possible. Nor will over-much coercion be allowed for the canine participants. . - ; A "fat boys race" will appear in the list of bicycle events. . As , (Turn to page 2, coL 7) - . ASK PRDVE i mm Oent bond houses joining in mak ing offers for the securities. The syndicate headed by the First, Boston corporation offered a premium of $441 above par for the entire block of $1,100,000 in bonds. Its bid specified that the $432,000 in bonds maturing in the years 1940 to 1952, inclu sive, should bear f ourj per cent interest annually while the $(8,- AAA , 1 . . . J . uuu in uuuub maturing in iuo years 1953 t 1965, Inclusive, should bear three per cent Inter est. A bid which was only a frac tion higher than that which won the council's award was that of Blyth & Co., Ferris and Hard grove and Bankamerica Company. This syndicate offered a flat pre mium of $2257.30 for the issue with all the bonds bearing 3U per cent annual interest. Small Difference in Interest is 'Ignred The aldermanic committee which took the bids nnder con sideration, placed the bid of the First Boston corporation and Its associates as $1781 better than the Blyth & Co., and associates offer. Under the bid accepted, the city will pay a total of $687,399 interest during the life of the bonds while the runner - up bid called for a payment of $689,189 in Interest. Bond bidders said the' b'ds were unusually close for an offering as large as the $1,100,000 issue. With the sale of the bonds last night, the co. acil cleared awa the last obstacle to the purchasa of the water plant here by the r'.y. The municipality -nd the Oregon-Washington Water Service company have already entered, into a stipulation in which the details of the transfer of the IoclI properties are agreed upon. This stipulation ,has been filed in fed eral court in Portland and has met with the court's approval. City officials estimated last night that 30 days would be re quired for checking' of legal op inion on the bond issue, printing of the bonds and their signature by city officials. The purchasing firms will take the bonds and will pay accrued interest to the date of eir delivery. Bonds will be dated July 1, 1935. The prob able date for the transfer of the water company here to the city will be August -1, . although the council's resolution e a 1 1 for transfer (a or before that date. Officials Pleased At Favorable, Bids Members of the council and Mayor V. E. Kuhn last night ex pressed pleasura at the low rate of interest at which the city sold its obligations. They pointed out that had the sale of the water plant been consummated six months earlier the city, would probably have paid- at least one per cent more interest annually which would hare amounted to about $200,000 more interest dur ing the life of the bonds. The rapid appreciation In the Hbond market and the strength ening of the City of Salem's cred it is Illustrated in the fact that a City of Salem $60,000 refund ing issue went ; begging late la 1933 at six per cent annual in terest. When bids were; finally obtained by the city, only one offer was made and the city sold its securities at a five per cent discount on six per cent bonds maturing within 20 years. Eighteen months . later 24 bond houses participated in bids for a $1,100,000 issue with ' the pur chaser taking' the bonds to yield slightly less than three and one fourth per cent annually.: , The obligations the city Is now issuing will not only be a claim (Turn to Page S, CoL Tl