f
1
. Valley I Coverage
. Alert correspondent fa
more than 70 communities
kmo The Statesman naCea
The Weather
Partlr cloud v today land
lYiday, slowly rising ' tem
perature"; Max. Temp. Wed
fteaday 65, Min. 45, ; river
2.5 feet r a 1 n .49 t, Inch,
southerly wind. ! i
lively with new of all seci
tions of the middle WHlnm-
ette valley, i
EIGHTY-SIXTH YEAR
Salem, Oregon, Thursday Morning, May 21, 1936
Price 3c; Newsstands 5c
No. 47
Questions IA11
Nonsense Says
Pension Chief
Townsend Tells Investigators pi :
His Plan Over Million Collected
Wieciswe ote oh .Corporation ;
IJn-Tdx 'BiU-Eoonts Today
At Banquet of
Fanner Union
Martin Speaks
Fails to Relate j Details
Of Tax Collection and
Pension Payments .
Collections Are I Around
Million, Statement: of
Townsend on Stand
' -WASHINGTON, May1 20.-(fl3)
Irritated by sharp questioning re
garding his knowledge of the
Townsend old age -pension move
ment, Dr. F. E. Townsend, its co
founder, snapped back at a house
Investigating committee today
wit a blunt, "Oh, why all this
nonsense!"-' , j ; j
' "As a matter of fact you don't
know much about the Townsend
movement except the collection of
money, do you?"- pressed Repre
sentative Hoffman !R-Mich).
: "I decline to answer a ques
tion of that kind,'? Townsend re
torted. ! ; i. . :
Contributions are t j
Near Million Says;
f The elderly pension leader, who
had remained unruffled for the
most part under ) a barrage of
questions -during his second day
before the committee, readily con
ceded Townsend club members
had contributed "in the neighbor
hood of a million dollars since the
inception of the niovement."
! "And what did the contributors
receive in return?" asked James
R. Sullivan, committee counsel.
: "They got our organization,
which is exactly what thev paid
for," Townsend replied. "We have
8,000 clubs throughout the coun
try and a live working organiza
tion."
, The pension leader said, how
ever, a third party alliance of the
three organizations was not con
templated at this time.
- Pressed by committeemen for
details of the plan to impose a
transactions tax to raise funds for
payment of the $200 monthly pen
sions to the aged, I Townsend said
he believed he knew "a great deal
about the plan."
uicks Details of
Tax and Pension
Under Hoffman's persistent
questioning, however, it was de
veloped that Townsend had little
Information concerning collection
of the proposed tax and the ad
ministration of the pension law.
Townsend conceded! the age at
which pension ! payments start
might be reduced from 60 to 50
or 55, if necessary.
"And you expect these people
to vote for Townjsendites on the
assumption they will soon receive
a pension," asked) Hoffman.
.."They will, too, as you will find
out," answered Townsend.
The retired California physician
said he never made more than
$2,500 or $3,000 a year practic
ing medicine and denied 1 his or
ganization had ever; knowingly
; taken contributions from poverty:
! stricken people, j ; i
43 Capitol Plans
Received to Date
. Forty three architects had sub
mitted designs in the contest on
plans for the new state capitol
building up to late j Wednesday
afternoon, Arthur Benson, clerk
of the gupremei eourt and in
charge of the entries reported.
The state copitol reconstruction
commission will F meet in Salem
next Tuesday, J. A. McLean, chair
man, said while here Wednesday
on a short visit from Eugene.
. McLean stated all entries in
the national competition for de
sign!, for the new capitol must be
in Benson's hands by Friday night
of this week. They will be turned
over to the sub-committee of the
commission on Saturday for open
ing and display. I
Jurors will announce the award
to the winning architect May 28.
Winners of the other five $1,500
prizes will also be announced at
that Ume. ' i
West Side Route
Hearing Is Held
- PORTLAND, Ore.. May 20.-VP)
The state - high way commission
shortened its meeting here today
to go to McMinnville for a hear
ing on the proposed re-routing of
the west side highway through
that city. ; . .. ') r -! .
McMinnville residents aired
their views on .three proposed
routes to replace j the present
"xig-sag" through town. .-,-
The commission in its brief ses
sion here outlined its 1937 road
building and repair! budget but
withheld announcement until lat
er The group will convene here
tomorrow to open bids on 12 pro
jects. ' ;
Kizer Reed Regent
PORTLAND, Ore.4 May t0.-JP)
-Benjamin II. KixerL Spokane at
torney, became aregent of Reed
college today under the new pro
gram calling for widening the ge
ographical distribution of mem-
ft
Soundphoto of Dr. Francis E. Townsend, backed by supporters of his
program who trekked across the continent in a motor caravan,
testifying before the house investigation committee at Washington.
More Men Idle in
Lumber Deadlock
Log Supply Exhausted at
Some Mills; Parley Is
Apparently Futile
i
PORTLAND, Ore.,' May 20.-UP)
-Strikes, a log shortage and dam
aged mill machinery left several
hundred men Without work in
Portland today as negotiations
continued in the current tie-up of
loging camps in the western Co
lumbia river area.
State Labor Commissioner
C H. Gram said another meeting
of union men and joging opera
tors would be held! Saturday in
an attempt to reach an agreement.
Control of hiring is the principal
issue. No announcement was
forthcoming from
sions.
today's ses-
In Portland today, the large
Eastern & Western Jnill remained
-idle due to a strike called in pro
(Turn to page 10, col. 3)
Electric Finn to
i Declare Dividend
PORTLAND, Ore. i May 20. -UP)
A report of the .North western
Electric company showed today
the firm had a balance of $370,-
538 from operations; for the year
ending March 31, 1836. The sum
represented an increase of $142,-
775 from th3 previous 12-month
neriod.
Net revenue of $i, 425, 907 was
reported to be an increase of 8
per cent over the previous year.
As soon as pending litigation is
disposed of and necessary adjust
me tit a are made in the par value of
common stock, dividends from the
370.53S earnings, which are ac
cumulated in the surplus account,
will be payable to preferred stock
holders, i
Taxes Increased 8 per cent and
other operating expenses 9 per
cent during the past year, Pres
ident L. T. Merwin said.
Chief Minto Improved;
Seriously III at Home
Chief of Police Frank A. Minto
was reported last night to be
slightly improved at- his home
where since Monday he has been
bedfast. He was ordered to bed
by his physician when he com
plained of severe j pains in his
legs, which first began last Thurs
day. The ailment was attributed
to nervous strain land complete
rest was prescribed. The chief's
condition was not believed to be
serious. He has been in ill health
for more than a year.
man is
Hoit
But Last Man, Jersey List
NEWARK, N. Jj, May 20,-UFi
-Gov. Harold G. Hoffman, whose
right to represent the republican
party at the national convention
was challenged because of his in
tervention . in the Hauptmann-
Lindbergh case, tonight finished
last among the party's four elect
ed delegates-at-large, as Governor
Alf M. Landon of Kansas won a
sweeping victory in the presiden
tial preference contest.
More than 170,000 persons vot
ed for Hoffman's j foe. Franklin
W. Fort, who sought election
solely on the issue! that it would
be "a rebuke" to the governor
tor "dragging Jersey justice in
the mire" in the Hauptmano
case. " " . ,1 " ': "
- Although he led Fort by ap
proximately 45,000 votes, the gov
ernor trailed the slate's high man,
former Ambassador Walter .
Edge by more than 37,000 totes,
and National . Committee woman
Edna B. Conklin, by 7,000 votes.
Landon Winner by
Fonr-to-One Margin
Other developments shown by
tabulation of yesterday's ballot-
war
III
v
Struggle on For
Mongols9! Fealty
China and Japan Engaging
in "Battle of Money"
to Control Region
1
SIUTAN, S u 1 y a n Province,
China, May 20,-() - China and
Japan are waging! a "battle of
money" to win the Support of rul
ing : princes in strategically vital
Inner Mongolia, which many ob
servers believe may some day be
come the scene of actual combat
between Russian, and Japanese
armies. .
The Mongol princes, hard hit
by ; a devastating winter which
seriously depleted their herds, are
gratefully accepting an unexpect
ed windfall in the; shape of air
planes, automobiles, munitions.
high salaried jobs fend hard cashc
China's chief interest in offer
ing inducements tofthe Mongols is
Is to block Japanese encroach
ment on the last slice of Mongo
lia which remains! under China's
nominal control. Japan's aim, on
the other hand, is to insure the
friendship and cooperation' of the
Inner Mongolians iin event of a
clash with Soviet (Russia, Outer
Mongolia, or both.
Soviet Russia's interest in In
ner Mongolia is equally vital, but
if heragents are playing the same
game as the Chinese and Japan
ese, they are being highly secret
ive about it. j
Pyke Named Head
Of International
James Pyke,, eiping, China,
was last night elected president of
the International lub at Willam
ette university for the coming
school year. The group's new
president, a senior in the univer
sity next year, transferred to Wil
lamette from Yenhing university
in Peiping in 1934 and has been
active in campus aiiairs since
that time. ; . i
Other officers I elected were
Evelyn Welsh, y ice -. president;
Totsura Tada, secretary-treasurer
The clu, which has 45 mem
bers. Is sponsored by the Carne
gie foundation. Guests at last
night s meeting wtere Mrs. Natha
lie Panek and Mrjj.f C. A. Downs.
Mooney Case Waits
SAN FRANCISCO. May 2Q.-UP)
-Thomas J. Mooney's habeas cor
pus hearing, under way here since
last fall, was recessed today un
til Jnno 8. when I the final three
state witnesses are to be called.
ate
. ..1111-iipi. j(i i.m.mi i -i linn - m
President Roosevelt received a
large "write ii" fvote, not tabu
lated generally! but in some dis-
Governor London's four-to-one
victory over Senator William E.
Borah in the presidential prefer,
ence, which is not binding, and
election of Landon pledged at-
large and district- delegates which
assures the Kanstn of at least 28
of the stated j 32 rotes at the
Cleveland convention next month.
The other fouTidelegates were unr
pledged and ran without designa
tion. Edge, said b!e believed these
four would accept the ."decisive"
Landon verdict ahd "vote accord
ingly" which would mean a solid
delegation 'fori the Kansan. ; :
Demo Delegate All
Support Roosevelt j
The election In every district
of the democratic organization
district ; delegate slates . pledged
to President Roosevelt renomt
nation. :: i - i
Polling ! of mere than 30,000
votes by Col. Henry Breckinridge,
new deal foe and sole entrant in
the democratic preference column
(Turn. tQjma 1 I
Named Delea
Cooperative Program in
Agriculture Praised
By State Leader
Parade of Progress' Has
Colorful Features";
Meeting Near End
MT.. ANGEL, May 20. Four
hundred persons who attended the
banquet of the Oregon Farmers
Union 26th annual convention to
night heard Governor Charles H.
Martin and Charles C. Talbot,
president of the North Dakota
Farmers Union, laud cooperative
organization among farmers and
point out the potential develop
ment of natural resources of the
nation. -
The governor, speaking concern
ing increasing markets and nat
ural resources of Oregon, empha
sised the value of Bonneville dam
in developing a great industrial
center on the Columbia river. He
said the dam would make Portland
a great original market and that
not only Oregon but the whole Co
lumbia valley would benefit by
this huge project.
Willamette Valley
Survey Emphasized
Governor Martin also pointed
out the usefulness of the Willam
ette valley survey and ended his
talk by saying that he was always
ready to work with the Farmers
Union and Grange "to bring a
wonderful day for Oregon."
"The banking system of the
country has given a special priv
ilege to the rich man," Talbot said
in his talk in which he took a
thrust at the capitalistic system
and urged a greater social view
point. Father Alcuin of Mt. Angel also
spoke at the banquet. Songs were
given by the Mt. Angel quartet
And by Miss Agnes Walker. Frank
Heppwer of Mt. Angel was toast
master. Afternoon Parade
Colorful Spectacle
Principal feature of the after
noon was -the "March of Prog
ress" parade. Unts in the parade,
led by Cletus DutscnV in a float
bearing Farmers Union emblem.
included: George Meyers, first
creamery driver here, in a. cov
ered wagon followed by 12 cream
trucks; R. J. Benning, Mt. An-
(Turn to page 10, col. 1)
One-Legged Man
Is Jail Breaker
LOS ANGELES May 20.-jP)-
waiter Mumrord has only one leg,
but he gets out of jail with the
greatest of ease.
Mumford, 34, appeared in mu
nicipal court today for arraign
ment on a jail escape charge, and
it was disclosed that on May 18,
1935, he escaped twice from the
Lincoln Heights jail.
Also, he was arrested twice that
day on other charges, of intoxica
tion and begging.
The judge set next Monday as a
date for preliminary hearing. Then
he cautioned officers who had the
prisoner in tow.
"Better take his crutches away
from him or he may walk out
again."
Governor Advises
Cadets at O.S. C.
CORVALLIS, Ore., May 20.-UP)
-Governor Charles H. Martin told
54 Oregon State college cadet of
ficers today "the hope of the
state is in such young men as
you, who have never been licked."
His address to the group, which
soon will receive commissions,
preceded the annual review of the
R.O.T.C. unit.
"When you finish here, don't
jein the grouches who think
everything isL wrong and don't
join the radicals who want to tear
everything to pieces," the gover
nor told the cadets.
Outbreaks Harass
New Spanish Rule
MADRID, May 20.-VPI- Labor
and anti-clerical troubles contin
ued in various sections of Spain
tonight to cause fresh worries for
the new government of Premier
Santiago Casares Quiroga.
Extremists at Talavera in GaH-
cia province ejected nuns from a
convent and appropriated the
bnilding for "public use." Civil
guards escorted the nuns back to
their home and .surrounded the
structure to prevent further at
tacks.
Republican Delegation
To Organize, Portland
Organization of Oregon's repub
lican national convention delega
tion of a chairman and secretary
will be the order of business of
meeting' of the committeemen to
be ' held in Portland . Saturday
Frank . Derby " announced yester
Guf fey Drafts
Price-Pegging
! Coal Measure
Substitute for Rejected
! Control Bill to Pass
Scrutiny, Claims
- ;
Question of Passage at
Thisj Term Uncertain ;
Unions Insistent
WASHINGTON, May 20.
Seeking to offset swiftly the su
preme court's invalidation of the
Guf fey Coal control act. Senator
Gutfey (D-Pa) today Introduced
substitute legislation shorn of all
labor provisions but providing for
governmental price fixing.
Whether the senate and house
majority leaders would demand
final action on the measure at this
session Was a matter of consider
able debate.
Guffey himself declined to pre
dict action before adjournment.
but asserted the new legislation
-largely a duplicate of the ori
ginal act except for the wage and
hour sections tabooed by the
court would avoid constitutional
trouble j because it was based on
congress' undisputed power to
regulate Interstate commerce."
The Pennsylvania senator said
he had not conferred with Presi
dent Roosevelt on the measure,
despite a call at the White House.
He told reporters it was for the
chief executive to say whether it
would be placed on the list of
mut"!biris.
Secretary Perkins late today
couf erred i!t with Senator Guffey
regarding' "possibility of Including
some labor provisions in the re
vised bill.
Introducing a duplicate bill in
the house, however. Representa
tive Vinson (D-Ky) asserted,
This is an administration mea
sure."
John L. Lewis, president of the
United Mine Workers, told re
porters! that his union Would "join
in requesting congress to enact
the bill at once prior to adjourn
ment.! "The bill has been drafted on
basis that seems to meet the
requirements of the supreme
court,"! Lewis added. "It will op
erate to maintain the equilibrium
of the coal industry pending fur
ther study of stabilization of the
Industry."
Rudv Vallee Now
Single Man Again
i
LOS ( ANGELES, May 20. -JP-
The long-fought domestic warfare
between Rudy Vallee and his wife.
Fay Webb Vallee, ended in super
ior court today when she won a
divorce!.
A property settlement was ap
proved; giving her flOO a week
for the rest of her life or until
she re-married," along with a cash
sum, the amount of which was not
disclosed. ' ' '
She also received permission to
use her maiden name again.
The suit technically was con
tested.
North Sea Limbs
Into Sound Port
SEATTLE, Kay 20--(i'P)-The
srlppled steamer North Sea, which
ran aground at Marsh Point.
Prince, of Wales Island, Alaska,
a week ago, limped into port to
night to be placed in drydock for
repairs to a damaged hull. v
Members of the crew said the
trip south from Ketchikan was
uneventful.
After the North Sea went
ashore In a dense fog, the steam
er Victoria took most of the pas
sengers from the North Sea.
Those : bound for Ketchikan re
mained aboard the North Sea.
Defense Rests in
PWA Power Case
WASHINGTON, May 20.-UP)-
The government closed today its
defense of the public works ad
ministration's $200,000,000 pow
er program.
The! three week hearing In the
District of Columbia supreme
court is expected to end Friday,
when Newton D. .Baker, counsel
for four utility firms, will submit
a final argument for an injunction
to prevent PWA financing local
power, projects. : ':
" Sarpolis Defeated J
PORTLAND, Ore., May it.-jJP)
-Chief Chlwakl, 243, Indianapolis,
won the third fall on a foul to
night to defeat Dr.' Sarpolis, 220,
Cleveland, in - a - three-fall " main
event wrestling match. - ,
Bloodhound Figii
Capture oj
Fugitive
Beavers, Regarded- as Ringleader in Break From
Oklahoma Penitentiary, Caught Without
- Struggle; Two Remain at Liberty
PITTSBURG, Okla., May 21. (Thursday) (AP) Th e
capture of Claude Beavers, one of the eight desperate
convicts who escaped from the Oklahoma penitntiary at
McAlister,May 13, was announced here early today by War
den Roy W. Kenny of the Prison.
Beavers, sixth of the gang to be. captured, offered no
Girl Gets Back
Her Purse and
Various Extras
CHICAGO, May 20.--On
the eighth floor -of the
bnilding; where she worked,
a thief snatched the purse of
Miss Mary Alice Jones, a
Sunday school worker. It
contained $700 which she
bad saved for a trip to the
world Sunday school conven
tion at Oslo, Norway.
She chased the thief to the
seventh floor, where she tore
off his coat. On the fourth
floor she ripped off his shirt.
On the third floor, the thief,
down to his trousers, gasp
ed: "Lady, I dropped the
purse on the seventh floor."
Miss Jones, desisting, re
turned to the seventh floor.
The purse was there.
I
I
Allen -Burt Race
Still Uncertain
Pendleton 3Ian Leading
by 50; Turner Close to
Martin in Count
PORTLAND, Ore., May 20.-&P)
-Two democratic campaigns for
the nomination for state treasur
er and for election as national
convention delegates from the
first district still held the lime
light tonight S3 an aftermath of
last Friday's primaries.
Complete returns from all 36
counties, 16 of them official, left
Jack Allen, Pendleton automobile
dealer, in the lead in the treas
urer nomination race by an even
50 votes. The tally to date: Allen
41,880. U. S. Burt of Corvallis.
41,830.
Allen led last night by 59. Re-
checks today lost him 10 in Jack
con county and gave him fou
more in Clackamas, while Burt
gained three in Jackson giving
him a net gain of nine.
Asked concerning the possibil
ity of a demand for a recount
Burt said tonight, "I shall abide
by the final results. They are not
yet definite."
The winner will oppose Rufus
Holman, incumbent state . treas
urer, in the general election next
fall.
In the first congressional dls-
(Turn to page 10, col. 1)
Layette For Multiple r
Births to Cost No More
PORTLAND, Ore., May 20.-P)
An argument for quintuplets-
department store offered today to
provide insurance that layettes tor
five babies will cost no more than
for one. The first layette purch
ased entitles the mother to as
many more free as she has babies
in excess of one when the "blessed
event" arrives.
Department Store Building
To be Started in Ten Days
Crews are expected with fa 10
days to start razing buildings and
making 1 the excavation on : the
Skiff property, 161-173 North Lib
erty street, in preparation for
construction of a department store
building for 'Montgomery Ward
and company, it was reported yes
terday by Dr. Mark S. Skiff, for
mer owner. Transfer of the deed
to Montgomery! Ward and com
pany was recorded " at the court
house here yesterday. ,
Dr. Skiff said he had received
his Information from Montgomery
Ward and company attorneys In
Portland: The new bnilding will
hare at least two stories and base
ment and will cover the 62 by
165 foot lot, Dr SkiIf w ad
vised. Details as to type of con
struction were not available here
or in Portland., ' - r
Consideration 1
Deal la Large Sam ' .
Test holes, - apparently to as
certain the typo of foundation nee
esaary, were drilled 22 feet deep
resin
Desperate
resistance,. Kenny said.
"He was just about worn out."
tne waraen saia. i .
Old Boston, the prison's ace
bloodhound,, was given much cre
dit for the capture. The dog's keen
nose led five possemen to the field
where Beavers was found.
Kenny said he would leave at
once for the prison with the cap
tive, placing him in -solitary con
finement.
Beavers was caught by a group
of officers between here and the
settlement of. Ti.
First reports said he was un
armed.
Possemen began closing in on
Beavers early last night. Old Bos
ton struck a hot trail shortly after
midnight, and Beavers was cap
tured at 1:30 a. m. (C. S. T.)
Beavers, regarded as one of the
most desperate men in the break.
was caught less than 20 miles
from the penitentiary.
Deraos Aghast as
Lehman
Declines
Drafting of N. Y. Governor
Proposed; He Disclaims
Third Term Quest
ALBANY, N. Y.. May 2oJ-(V
Herbert H. Lehman, successor to
President Roosevelt as' New
lork's governor and staunch sup
porter of new deal policies, an
nounced with "dramatic sudden-,
ness today that he will not seek
reelection for a third term.
Immediately, there were indi
cations of a powerful "draft move
ment" on the part of democratic
leaders who had counted on the
governor's candidacy to strength
en the president's campaign in tils
home state. I
President Roosevelt expressed
the hope Lehman would see his
way clear to run for reelection,
adding that he had known of the
governor's intentions for ' some
time.
Sen. Robert F. Wagner (D.
N.Y.) said in Washington that
"Governor Lehman is eo indis
pensable to the state1 that we've
Just got to draft him."
Unheralded Statement
Prove3 Bombshell
The governor's announcement,
handed, to newspapermen In the
form of a 250-word mimeto
graphed statement with a hint of
what it contained, left political ob
servers gasping inasmuch as It
had been, generally conceded that
he would again consent to head
the democratic state ticket.
"I fee the time has come when
I may ask release from the cares
and responsibilities of the gov
ernorship," he asserted.
Lehman, who entered state ser
vice in 1928 as lieu tenant-go ver
(Turn to page 10, col. 4)
Logging Injury Fatal
EUGENE. Ore., May 20.-4)-Authern,
Winfrey, 20-year-old Fall
creek logger, died of injuries in
curred when he was crushed by a
log at -the Giustina mill in the
Lost creek area.
on the Skiff property Sunday,
The salo of the - property in
yolved $55,250 directly, including
120,000 la cash. Dr. Skift report
ed. Other considerations,, he said,
raised the amount in the deal to
approximately $1000 per f ront
foot. The purchaser is to buy
rights- in joint building walls at
either side of the lot owned by
W. W.' Moore and the Eckerlen
estate. . . -: ' ;
- The' Skiff, deal, pending since
last October, recently neared com
pletion when Dr. and Mrs. Skiff
won a court suit which had been
brought against them over rights
in" the property. .
- Liberty street land with 82 H
feet frontage was purchased from
William Anderson by Dr. Skiff's
father, L. S. Skit, in 1867. In the
1870s the north 20 feet was sold
for $1500 to Reed's Opera House
company. -For 48 year-Dr. Skiff
now retired, had his dental of
fices on the property which ho has
just soId.; . :.v ' '
From Prison
New Proposal
Gains Siijpport
In
1 1
J i 1
Flat Corporation Jncomi
Tax of 25 Per Cent to
Raise 641 Million ..
Balloting Stage Reached
But Possibility Seen
Q Further Debate .
n i
WASHINGTON, j fuay 20.-JP)-Equipped
with a dozen new seta et
revenue estimates from the treas
ury, the senate finance committee)
today disposed of minor .points of
the revenue bill and squared awaf
for a decisive vote tomorrow ol
the crucial corporation tax feat
ure., ; '
Tot the latest j assortment ot
plans for taxing corporations and
their undistributed; earnings tbt
estimated yields rah between
$536,000,000 and $835,000,000.
The committee argued over
them; then postponed action.
One member who has been fol
lowing the trend of committee
sentiment closely sad that a hith
erto unrevealed proposal "appear
ed to be less objectionable" to
many of his colleagues than any
other. ; i
It would raise; an estimated
$641,000,000 by placing a flat 25
per cent tax on Corporation in
come. It would, however, allow a
reduction from the amount ef tax
able income equal! to 40 per cent
of the amount pt such . inconia
paid out as dividends.:
Excess Profits Tajjj
Would Be Removed : .":
The plan also Would repeal the
capital stock and excess profits
taxes and the exemption of divi
dends from the normal 4 per cent
income tar. I j i
Several committeemen said nev
ertheless that the latest computa
tions apparently had done little
to solidify support behind any on
proposal for rewriting the cor
poration tax provisions ot the bill
as approved by the house.
Members said , they definitely
.would reach the voting stage to
morrow and begin the weediaar
out process. But Senator Clarfex
(D.-Mo.) warned that the contro
versy still was so heated that a
half a dav or the entire dav miraa
be spent on more; debate.
In its first real; action, designed
to get past the . Jess troubleaoma
aspects of the measure and dear
the Way for the scrap over corpo
ration taxes, the committee ap-
proved the house provision for a
80 per cent tax on persons om
firms "unjustly enriched" by non
payment of the Old AAA process
ing taxes. :j
But the details were so altered
as to ease up the tax to some
degrees. .
Non-Resident Alien
Would Be Reduced
Other modifications alse wen
agreed on for : sections dealing
with refunds of taxes on floor
stocks on hand when the AAA war
held Invalid, and, tentatively. fo
(Turn to page 10, col. S)
Prison Population
Reaches New High
if .1.1 G
r 4 i-i .
The Oregon state; penitentiary.
with 9 59 inmates, had reached
hew high" yesterday, former
prison records having been equal
led when 957 prisoners were ia
the institution,! Warden James
Lewis said yesterday that the pen
itentiary could accommodate 1000
prisoners without overcrowding,
due to the extra cell space provid
ed when the new cell block was
constructed. Dining! room taciU
ties, however, are crowded.
Twenty prisoners have reached
the time for release; on good time
credits, heretofore granted auto
matically. Since the; case of Earl
H. Fehl was presented in court,
these prisoners have been held ia
prison, awaiting a court decision.
The parole board refused to act oa
the cases until the court ruled.
The prison population has gain
ed steadily since the Martin ad
ministration came into office in
1935, due to the refusal of Gover
nor Martin to grant pardons and
paroles except where exceptional
cause for release of prisoners was
present. : ! - fj"-".':' : -
Scout Fund Here
Gets Good Start
. More than $1000 in cash and
pledges was reported by workers
in the Salem Boy Scout financial
drive when they held their first
report luncheon at the Quelle yes
terday noon. The 1936-37 budget
totals $3900. i ;i
A second report meeting will bo
held at the Quelle today noon
Tentative plans are to hold a Tie
tory dinner at' the conclusion 4
the driven ft '
Coiiimittee