1
N STAT!
PAGE TWO
Oil Lease Men
Face Charges
Nearly' two Million Said
Collected by Firms .
v in. Washington
Continued from page 1)
royalty payments to Call Matth
ews.. Ephrata abstractor, and own
era of the. property, when and if
oil was discovered.
' .Theses leases, it is alleged, were
then turned over to the. newly
organised aevelopment-rompany,
a Washington' corporation, which
gave a $65,000 note in payment
and In turn sold, them jto the Peo
- pies Gas and Oil corporation for
a J 65.600 pote. The government
- alleges neither of the. notes was
ever paid. The Peoples Gas and
Oil company was then hired to
sell the leases, which were sub
divided and sold, . according to
the indictment, for from J 10 to
$35 an acre. !. -vvv' :
These lease sales, it is further
alleged, resulted to gross income
f ;near!yS2, 000.000 to the sale
company prior to Jnne 1. 1937.
when the officers embarked on a
new plan, whereby lease-holders,
or those who; had - traded, their
leases -for stock in the develon
nient company, were' to be given
an opportunity to buy 92,500.000
worth of "participated certifl-
b rates,"-proceeds of which, were
supposedly to be used in further
development of the company. .
JMvidrads, lrge
Salaries An Paid
The government charged most
of 'the money collected was dis
sipated; $150,000 being paid out
in dividends : to stockholders of
the Peoples Gas and Oil company,
whose- securities were never of
fered to the public, and other
.amounts 'going for large salaries.
The frand charges included al
legations that the companies lit
. eratare claimed leases were held
adjacent to the profitable Rattle
snake Hills district, whereas no
such leases were held, and charges
tflat the company claimed to have
found - oil : bearing gas in the
: Frenchman hills operations when
" nothing had been found.
. The People's Gas and Oil com
pany did not operate inOregon,
said J.- H. Hazlett. corporation
commissioner, last nig-ht.
Other - organisations selling
blocks of land in Harney county
for oil speculation came- under
sharp ' criticism by the commis
sioner recently. Federal agencies
are reported as having these con
cerns under scrutiny. , -
Stable
System Said Goal
(Continued fromhage 1)
been!
caustic critic I m a n y
Roosevelt iol idea-
Class, seated behind the presi
dent with . high, government offi
cials, smiled broadly.
Throughout Mr. Roosevelt's
talk ran a re-statement of a gen
eral objective, described today in
these words:
To &in for all of our people
the greatest attainable measure
of economic well being, the larg
est degree of economic security
and stability.' .....
Mchorter Assigned
WASHINGTON, Oct. ZD. -')-The
federal .power commission
named Roger B. McWhorter.
chief of its engineering bureau, as
. It representative on. the Bonne-
Tilhr advisory hoard.
The Call Board
' - - : GKAXD i':;:
Today Warner Baxter, Lor-
: etta Young and Virginia
Bruce in -Wife,
Doctor
- and Nurse." n
. 1:15, Jr21, 5:28,
7:557
t-A2.
Satarday "Charlie Chan on.
. Broadway with, Warner
' . Oland.
.X: STATE '
Today "Last Train' From
v'Hadrid witk Dorothy La-
mour. Lew Ayres and Kar
" efr Mocler aad lour bt&"
f'.acu vaudeville starring
AInex GrahamV
'HOLLYWOOD . ;
T o d a y Double bill. May
ftobson ' in ""Woman In
Distress" . and "Rhythm
; ; fn the Clouds' with WarC5
j ren Hull and Patricia El-
lis. .
Triday Double MIL. "Reck-
: less Ranger" with Bob Al-
' lea and ri Cover the War"
" with John Wayne.
-
." ELSOORE
Today Double hfll.
Ed-
ward Arnold in -Easr LIv-
Ing" and "Escape by
Night" with an star cast.
2 CAPTTOXt ' : "
Today
'Scat
Don ble bilL John'n v
Davis 4n "Over the
GoT ani Gene Antry In
, "Bootsvand Saddles."
TrrrTTTr'Tf
Perfecting
14 rt Gertificate I
.; -No) 4 . .. . , ;
;This Certificate and five others, all differently
numbered, entitle you to yjne week's Set of Four
. Pictures upon payment of only 30c (46c if by
: wail). - - - . , -
-IMPOnTAXT-
11 i
Be sure to order Set Xo. 1 -tf jom have that or sub'
sequent sets, order the next numbered Set of Four.
Bodies of 19 Recovered From Wrecked Airliner
la ssassassjiti i i sssfiTT'sTBriTTW T-rTMwr-rrm- - -11 ' ir ' - w 'VT --:-:----fiw ---r --,
:?.';-,.',- (;- - ! - , , -
'-;- V ., r - , - I . , , . - ,
f""T-'. ' - . - -
s , . . -. . 4 - - - - -
- " -, ' . -1 . , . - f
- V'- - V, '
J- - i 1 - . . -
' ;- L': -. . i ' ,
f-'-f.( " .'r- -v,
" . - I J V- --4 :V'-::
Above, pictare (akea from the air
of Chalk Peak near the Wyoming-Utah border Sudsy. Bight wing was broken off, folded back ana
lay parallel with the fuselage. The left wing was sheared off. Lower picture shows tho tail, all that
muhH iatart. The bodies of the IB victims were taken to Evanatoa. Wro. mortaaries. Their
deaths made It the most costly
Belligerent Right
Demands Dropped
(Continued from page 1)
surgenta and the government la
Spain. The subcommittee will
meet tomorrow afternoon to estab
lish this point definitely.
2. A committee will go to Spain
to report on the numbers of vol
unteers and a system tor their
evacuation.
3. Complete evacuation to be
undertaken.
4. An independent authority,
probably the nonintervention com
mittee, to decide the moment
when belligerent rights should be
granted.
British officials asserted An
thony Eden. British foreign secre
tary, pinned down the Italian am
bassador to this procedure by
pointed Qaestloa to which be re
ceived an affirmative reply.
Damage by Rains
In East Is Heavy
' (By The Associated Press)
Heavy flood damage was re
ported yesterday in the wake of
dousing: rains across the eastern'
halt of the nation.
; Some i sources estimated , the
losses, concentrated in southern
Virginia and northern. North Caro
lina, might reach several million
dollars. "
- - Swollen streams washed out
bridges and lowland crops and ia
andated. portions- ot several Vir
ginia . communities.
One drowning ' was recorded
seat Buckhorn, Va
A 24-hour downpour sent moun-
taia streams oa a rampage in
North Carolina.
FFA Meet Honors
v Cloverdale Youth
' KANSAS CITY, Oct.
Robert Stalts of Cloverdale high
9 4 bcoui mua veriia tiermaaa ot
'Myrtle Poiat wera the anlv rtr.
i .n rocationai agn-
uilBre VJ1 wardg
Uoa or the ruture Farmers of
America. . , v
The awards, signifying super
iority ta improved farming, norm
ally go to less than 100 youths,
' The Oregon delegation was the
largest from among the 11 western
states... w
P3!
fe5
cf wreckage of tho "JlainUne-,
air crash ever to ocrar ia the TJaited States. II3T photos.
Double Features
Deemed Harmful
To Film Industry
PORTLAND, Oct. 2H5V"Those
movie fans who deplore the dou
ble feature epidemic have the
sympathy of nearly every theatre
operator, Ed Knykendall, presi
dent of the Motion Pictures Thea
tre Owners of America, declared
here today.
He predicted that the "curse
would soon be lifted and that
fewer and better pictures, enjoy
ing longer runs, would become
the rule.
We deplore the doable feature
system and realize it Is bad for
the show business," he said. "The
original idea was to offset the
competition of a theatre with a
stage .show, hut it has spread
lfke aa inOuensa epidemic and
now almost every operator' has
to present the double-barrelled
program."
Japanese Advance
Denied by Chinese
(Contiaued from page 1
that Japanese were withdrawing
In Shantung province, the eastern
route of their aouthward , drive.
Chinese reports from Shantung
aid Gen. Han Fn-Chu's provlncla.1
forces have retaken lost positions
near Teehow on the Ttentaln-Pu-
kow railroad without heavy fight
tog. .
Bible, Only Gain
Of Auto Looters
. EUGENE, OcL 20-Py-The ten
commandments and one. in par
ticular, "TOoa shalt not steal"
must hare been brought abruptly
to the notice of the person or per
soas who broke into a parked auto
here last night, '
The machine was parked to
front ot the local Christian
church. ThJevea took a brief ease
frost the car and must hare been
surprised, police officials said, to
find nothing more than a Bible
inside. t
Iron Lung Drive
Is Nearihg Goal
EUGENE. Oct, 20-VEugene's
iron lung drive fund reached a
high .of 12328 today, with' over
$ 400 additional in pledgee still to
be collected. The mark drive of
ficials hope, to reach Is 13000.
An iron lung, artificial respira
tor used in treating infantile par
sly is cases, was purchased some
weeks ago by the Eugene commit
tee and - is ready for shipment
from the east, drive officials said
today.. - : . . ,
Sparkling , '
witty drama
M 4.. 9
Ti OREGON STATESMAN, Salemv
airlJaer whkh crashed on the side
Stocks Clinib as
Trends Reversed
; (Continued from page 1 )
srday, and $3.40 above yesterday
the largest gain since the 14. 10
advance In the averages on March
15, 1933.
After appraising the rapid re
covery tn the stock market y ester
day, brokers, bankers and indus
trialists Quickly advanced the be
lief the wate of fear, which
spread over the exchange Monday
and early Tuesday, had disappear
ed. After such a selling wave ex
perienced in recent days, the opin
ion was general that prices were
attractive to many buyers.
It was reported considerable in
stitutional baying; waa put
through that Is, corporations
buying their own- stock.
Courthouse Issue
Will Be Outlined
Plans to inform Marioa county
voters ot the aatwre of the court
house construction program to he
voted oa at the November 2 spe
cial election . were aiseusaea at a
clvie leaders' committee meeting
here last night. Under the name
of the Marioa County Courthouse
committee, the group will arrange
to have the four questions oa. the
special ballot explained to the
general public
The " first of the four ballot
tuestions is on authorizing the
county court to baud the new
courthouse. The other three pro
vide means tor financing the pro
gram over a six-year period.
Truce Announced,
Strike
ore
TAMPA, llju Oct. 2l-(Tbnrs-
day)-(AVvV S. Townaend, south
ern representative or the. interna
tional longshoremen's union, said
a truce would - become effective
"some time today which will r
turn tCV striking longshoremen
to their jobs la souSieaatern sea
ports, !
. The truce.' will end temporarily
a - aix-dar-otd water froat strike
pending Tfnal negotiations .for its
settlement.
LEARN TO FLY!
$1.00 7eLIw p.'.
Salem Fljin Service
fiALEM AIRPORT
. Phono 6561 -
:m:ii:ki:i MOf
hi
J
1UU
him ri
Slay Robsoxt
"Rhythm im
the Clonds,
- Jbwjtiv:
;vVarre Hall
Patricia Ellis
' "Woman h'
.Distress
Added 'n & Cartoon
TWO BIG FEATTRE3
T Cover the
War"
with
John' Wayne
Bob Allen
: , la .
"Reckless
Ranger
Oregon, Thursday Morning, October 21, 1937
State Medical
Session Opens
Address of Dr. Bauer at
Serrice Club Luncheon,
Is Highlight Today
(Continued from page 1)
meeting at the Marion. Dr. Bauer
win sneak before the state so
ciety auxiliary at 1 p.m. today and
at the convention banquet at 6:30
p.m- Friday.'-"
Dr. Lester Heynoia yragsxeai,
professftr of aurgery at the Uni
versity of Chicago, another of the
guest speakers, will give talks at
and 7:30 p.m. today.
The third guest speaker. Dr.
Fuller Albright, Associate, in med
icine. Harvard university medical
school, will also speak at 2 o'clock
this afternoon. .
On the first of a series of tours
of state institutions, the visiting
doctors will Inspect the state pen
itentiary at 1:30 p.m. today.
The convention will last until
p.m. Saturday, with discussion
gronps meeting every nour
throughout each day.
Dr W. w. Baum .or Salem is
general chairman on convention
arrangements.
Parley Invitation
Studied at Tokyo
TOKYO, Oct, 21-(Thursday)
6PV-Jspan today received a formal
invitation to the nine-power treaty
conference in Brussels October 30
called to seek solution of the Chi
nese-Japanese conflict. ,
Foreign office sources disclosed
conferences have been in progress
to determine Japan's attitude
toward the invitation. It was said
Foreign Minister Kokl Hirato had
discussed the matter with the
Italian ambassador.
(A foreign office spokesman Oc
tober 17 said that Japan had re
ceived an "informal conference
bid. Press and -other Japanese opin
Ion has been divided on whether
Japan should participate in the
meeting.)
Reliable sources asserted Japan
would be unable to accept the in
vitation.
Opposition Looms
ForFR Program
ALBANY, Oct. 20-(vR-Con
gTessmaa James W. Mott, address
ing the chamber of commerce
here today, predicted that the ad
ministration program would meet
opposition in the special session
of congress as, effective as that
which stopped the supreme court
bill at the recent regular session.
The court bill, administrative
reorganisation, and wages and
hours legislation unless re-written
all will be in for tongh sled
ding if they come before the spe
cial session, Mott asserted.
The major debate, he predict
ed, wUl be over the crop control
measure, in view ot what he said
was the agricultural committee's
determination to write its
bill.
own
Fish Scooped up
in Drained Canal
BEND. Oct. lO-iAVSeoree of
men, women and children scooped
fish from irrigation canals today
in response to an appeal from
state gsme officials for central
Oregon residents to aid in salvag
ing the fish facing death ia rap
idly drying pools.
Charles A. Loekwood, assistant
state game snperrisor, said the
fish foand their way from the
Deschutes river Into a big lrrlxa
tlon ditch near Bend, the entrance
of the canal being improperly
screened.
I"?Fl (nilTfT" TODAY :
25 HITS 5 : , . "
- - yjsM '
i
. ' . .' '
i
e j ' -
j j Ifsreallv ' y'
' zwomkiM irbat a Sables rr f - u
f Coat can do to a gizll
, i
RAY HILL AND ' lfMl I
' ' . And 2nd Big Hit . 0 ,'r, I
'in)I0T0US jj i
. !; .,- aomance.. - 3 I jbl i
:p rT: t I $A hi M
; -'-- 4 iff ; I
Egg With Three ,
Yolks Is Found;
Also two in one
LYONS Freak eggs produced
by the hens of a White Leghorn
flock at the J. H. Johnston farm
are a - new experience of Mrs.
Johnston, who has never found
such peculiar eggs In her 30 years
of poultry raising.
One extra large egg, 8 by 6
inches, contained three normal
size yolks. Another egg, not so
large, contained a yolk of' normal
slse and also a soft shell egg
somewhat under size. . .
Water Resources
Will Be Surveyed
State Planning Board ; to
Gather Data on West
Columbia Basin
PORTLAND. Ore., Oct.
-Ormond R. Bean, chairman of
the Oregon state planning board,
announced today appointment of
sub-committee of the Pacific
Northwest regional basin commit
tee to compile data on the use
and conservation of water re
sources of the Columbia basin
west of the Cascades.
Oregon members Include C. E.
Stricklin, state engineer; -O. Arn-
splger, secretary of the Medford
irrigation district; John Cunning
ham, Portland civil engineer;
Carl E. Green, sanitary engineer
for the Btate board of health;
Grace Kent Magruder, Clatska-
nie; C. A. Mockmore, head of the
department of civil engineering
ot Oregon State college, and W. L.
Powers, OSC soil scientist.
Representatives of federal
agencies include Major Theron D.
Weaver, US engineers departH
ment; H. J. Andrews, US forest
service; G. H. Can field, CS geo
logical survey; W. A. Rockie, US
soil conservation service; J. A.
Craig, US bureau of fisheries, and
B. E. Stoutmeyer, US bureau of
reclamation.
Grocers Feted by
Bakers of Salem
More than 200 grocers of Sa
lem and vicinity were guests of
the several baking companies in
this city at a reception Wednes
day night in the recreation room
at the Cherry City bakery.
Motion pictures of special in
terest to grocers were exhibited
and other entertainment was pro
vided. Later a buffet luncheon
was enjoyed.
Rainbow at Night
Seen at Columbia
THE DALLES, Oct, 20. -P)-
Rainbows by moonlight present
ed a unique and spectacular vista
for nocturnal travellers of the
Columbia river gorge last night.
Full moon shining through i
thin cloud celling threw wide
circles of light vying with the
autumn leaves in color. Adding to
the effect, the river reflected the
haes b a e k against the canyon
walls.
Today, Fit & Sat.
TWO SMASH PEATTJBES
And 2nd
GENE AUTRY IN
"BOOTS AND SADDLES
2
a iwss nun awtri jcsssLMxnt
Grange Elects
Fart as Chief
Courthouse , Is Discussed
. but.no Action Taken;
. Ross Is Endorsed
(Continued from page 1)
al nlotS in the Si'verton; Hills
area.. '
Short talks were msde by M. C.
Glover. Clackamas county; G. H
Bailey, Washington county?. Sam
Brown, Gervals; and Herman Laf-
ky. Salem. A short skit by Union
Hill grange on CookIng Prunes,
enlivened the early afternoon ses
sion. . . - -'"'--v ' "
Pomona, vwilt meet " at Turner
the -third Wednesday in January.
and the next grange council will
be held at Turner' December 8,
following the state grange confer
ence at Fairfield December 3.
Five candidates were obligated
in the fifth degree: Mrs. Leona
Henderson. Ankenv: Mrs. Marion
Fischer, Union Hill; Mrs. Carrie
ownsend. Union Hill; Mrs. Lettie
Barker. Macleav: Mrs. Gertrude
Anderson. SUverton HU1. .
No discussion developed on the
grange floor over the recent se
cret caucus aimed at overthrow of
the GUI power in the state grange.
Erection Ordered
At Inman-Poulsen
PORTLAND, Oct. 2 0-tiP)-Of f 1-
eials ot the Inman-Poulson Lum
ber company plant, currently
picketed by both AFL and CIO
unions, said today it would hold
an election among its employes
with a view of reopening "in the
very near future."
The plant, whicm ceased saw
ing last month as a result of a
boycott and picketing by the AFL,
saw a walkout yesterday of the
few remaining CIO workmen,
when CIO officials charged the
STACK SHOWS
2:40 - T:20 - 9:20
MATIXEK
15c
EVEXKXG
yr Featuring
hlliinez'
I THE BLONDE f'
I VENUS j
V in her sensational
Y "Butterfly Dance"
V "Milady's Masqae if
25c
m - afi loro',y xjumoBT
5 fWfMli, THAT TELEPHONE you hire
' r ' do$r fno1 nearer lored ones,
-4i ) wIer optwrtunlr, more business,
-', jfVA'- ' - more pleasure, rreater conreo-
" -- - . ; i yours. May we tell you more about
i Telephone Serrice for your home? A postal card or a call
any telephooe will bring our representaure. ,
tee pmihs teief :::e c:d mEcra c:-?ii3i
740 State St. V ' Telephone 3101
company planned to resume' oper
ations under the afl.
"We plan to open with our own
men, whichever way they may
choose to Tote," Harold C Howes
company secretary, said.
George Brown; vice-president
of the CIO sawmill union, said a
CIO plant meeting would be held
tomorrow night to consider the
company's proposal.-
Industrial Arts
Teachers Gather
;. Teachers of industrial art and
vocational agriculture as well as
school principals and board mem
bers from nearby points met at the
new Salem senior high school last
night as the Willamette ValUy
Vocational association beld its
first meeting of the fall with lui)
present. .
Following a banquet In the
cafeteria, the group toured the
new building and shop. Roy Fos
ter, new instructor at Parrish jun
ior high, spoke on "Recent Dt--velopments
in Industrial Art," and
Superintendent Silas Gaieer of the
Salem schoois on "The Place of
Practical Arts in Modern School
Curriculum.
The next meeting of the group
will be December 2 at Eugene. C.
A. Guderian of Salem-is president.
and Maurice Bullard. Salem, sec
retary of the association.
Breakfast Club's
Session at Quelle
"Frosty" Olson announced last
night that the Breakfast club
would congregate tomorrow
morning after a week's carry
over. The scene of the" booster
club's activities will this week
shift to the Quelle restaurant ai
the Marion hotel Is full np for
the balance of this week. Tf the
Whittier team arrives In Silem
in time, which is likely, it is
hoped to have Coach Newman in
attendance at tomorrow morn
ing's festivities.
5 Unusual Acs 5
KASTEKX CIRCUIT
VAUDEVILLE
, THE 3 ROCKETS
Hurrlcaao hoofers hot frosa the
laeart of Harlesa.
-3-
MCKEY CARROLL
Hlslstare mlmicer of faiaoae
stars.
-4- -5-JohaayDove
Kddie Snyde
The skating Kite club
skamp. Joy-boy.
ON THE SCREEN
OUT OF WAR-TORN
STAIN comes the
STRANGEST LOVE
STORY erer told!
Lew Ay era
ience than you probably realize,.. . -
. ) m. M tmnam f9 ..V..
U 1J. a i i a i A a., is
rw