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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 18, 1938)
Valley News" ' " 'With - correspondents - in 80 ; Willamette - valley com . munities. The Oregon States-; man present complete news' coverage In Its territory. Weather Cloudy . with showers to day, c 1 o ad y Wednesday; Max. Temp. Monday 51, Min. 88, liver 7.0 feet, rain AH tech, S-SE wind. lvV 1651 EIGHTY-SEVENTH YEAR Salem, Oregon, Tuesday Morning, January 18, 193S Price 3c; Newsstands Lc No. 254 o I Cm POUNDDD Confessed. oi: Gold: Cache an 'n -ire - - ji arrcii s t icv; On Flax Hopes Is Challenged Laws Sends His Figures to McNary to Refute Lugubrious Claim AAA Man's Report Says Industry Unfeasible in This District Amazement was expressed in Viw r.onrro R. TTarrell director of AAA for.; the .western region, as basis "for "his refusal to continue a subsidy to flax growers. Farrell advised Senator Charles -.L. Mc Nary that fanners supplying flax to processing , cooperatiTes stoodj to lose $16 an acre on the-sale of the fiber evep if they received nothing for growing flaxj Farrell estimated cost of $105 an acre or 35c a pound for the fiber. The income he said would be 175 from thefiber-and $14 from the seed, or $89, leaving a $16 deficiency. L. L. Laws, manager of tbe state flax industry and member of the state flax board, immedi ately wrote a letter to Senator McNary challenging Farrell's fig ures. Based on actual results in growing and in retting and scutch ing operations at one of. the new cooperative plants Laws shows a net of $22.25 per acre for the grower. . , As to the operating costs of the scutching plant Laws has the following figures per tonjof flax:' Threshing labor . .. i.$ 3.32 Retting .so Scutching ..... 5.45 Hackling . 2.29 I Total labor ..$14.8$ The overhead cost of operating the plant is $7200 per year.- If the plant is operated at capacity of 1200 tons the cost-is $6 per ton. Actually it has operated at aboiTf 6 0 per cent capacity which increases the overhead cost to $12 per ton. Laws says that as experience is gained and : capacity (Continued on-Page 2, ICoL 1) Weekend Storms Cause 33 Deaths LONDON, Jan. 17.-(j!p)-Debrls-itrewn floodwaters rose over low lying farmlands today in the wake of a weekend Atlantic storm . that killed 33 persons. Police along the , normally f lacid Thames were warned ef er reme high tides as a TepzXt of the storms. . Bodies washed up ch the shores of Scotland and Wales told grimly of the sinking ,fl two vessels, the Clan Rhyrd - and the Lochshira, presumably with all hands. Both were freighters. ; - : i The transatlantic liner Quitania, proceeding at h a 1 f -speed with hundreds of seasick passengers, reported storms most of the way. GO dd i tic c ' . . in the, News BUENOS AIRES, Jan. 17-(V A strong bromide for . "Archi- baldo" today enabled the Buenos Aires zoo to reopen. 1 : - The sedative put 'Achlbaldo', to sleep after the young -.rhi noceros, newly arrived from Africa; went on a rampage, re peatedly charging his fence and iJFeaking his horn In rage. i Women and children wer so frightened r by the uproar : offi cials closed the zoo over Sunday. PHILADELPHIA, Jan. 17 (A3) Hundred of city employes went unpaid today because of city council's failure to adopt a budget for 1938 but sot the employes of common pleas court No. 6. . Presiding Judge Curtis Box, of that court, paid all clerks, stenographers and other em ployes with his personal check. The jurist advanced about f 2, OOO for the two-week psyroU ending last Friday. : VIENNA. Jan. 17-aVPoliee reported th arrest and subse quent release today of Prince c-ncf - vrnn Wohenbere. son - of Archduke Frans Ferdinand whose assassination at Sarajevo in lsift tonrhM off the World war. : tda nrinc was accused of damaging the ; German eoat-of- arms of an enameled sign on in front door of the . Vienna branch of a German railroad office, po lice said. The prince's brother. Prince Maxmllian, is the president of the Austrian monarchist movement backing Archduke Otto. i: Coin Totaling $315 Is Found; Officers Force Way in, Brave Shotgun Relatives Presumed Man Food but Never Admitted "Can't Pay the ' Taxes," Says; Insanity Charged Soot-coated rooms of a hermit's shack in the Hazel Green district yielded a cache of gold and silver coins amount ing to f315.80 yesterday afternoon when sheriff's deputies went to the place to arrest Gustav Fandnch, about 52, on. an insanity warrant. Insanity charges were preferred against Fandrich by a neighbor who asserted he threatened the neigh- Sadie9 Is Handed 60-Day Sentence Kinney Goes to Court in Female Disguise but Changes for Jail "Sadie," the male shoplifter whom city police discovered pos ing as a woman Saturday night, donned his feminine clothing for the last time for at least 60 days yesterday long enough to appear in Salem justice court and plead guilty to a charge of petty larceny. Remarking that the prisoner, Edward Kinney, 18, alias Sadie DeVaux, 27, had better find some masculine clothing before facing the county Jail's kangaroo court, Judge Miller B. Hayden managed to maintain the dignity of the court long enough to take Kin ney's plea and sentence him to 60 days in jaiL . . Kinney was given a pair of overalls and a man's shirt at the sheriffs, office bat. manicured, pointed and tinted fingernails and (Continued on Page 2, Col 1) Sweet Home Girl Rustler Suspect ALBANY, Jan. 17-(J?J)-Reatha Faulkner, 19, of Sweet Home, to day was the first woman in the known history .of the district to face a .charge of cattle rustling. She was arrested Saturday ac cused of being an accomplfce of Glenn F. Burnett, 26, Sweet Home, who. State Police Sergeant Ernest LaTios . said, admitted stealing and butchering a cow belonging to Albedt S. Juhnke. Officers quoted Burnett as say ing Miss Faulkner helped him dispose of the meat. - -, c . Congratulated bj Attorney General Homer Oummings, Stanley P. Reed, right, solicitor general of the United States, Is pictured shortly after he was notified of his nomination to the United States su preme court by President Roosevelt to succeed Associate Justic George Sutherland, who recently re signed. Reed's nomination Is the second President Roosevelt has made in his two terms, the first being -former U. S. Senator Hugo Black to fill the jjacaiicy left by Justice Tan Deranter. IIN photo. Was Penniless, Took Him Obor s son with a rifle Saturday. The deputies, B. G. Honeycutt and Paul Marnach, were forced to break through two ' doors be fore they could capture Fandrich, who threatened them with a rusty double-'harreled shotgun and put up a stiff hand to hand fight be fore he was subdued. The .22 cali be rifle he had brandished at the boy Saturday was found neatly wrapped in cloth, under a pile of corn lying on the floor of the room in which Fandrich appar ently ate. and slept. ? Despite pleas of the tattered, black-bearded man that "I can't pay the taxes" and "they stole all my money," the deputies searched the rough-board cabin and found the money, hidden away in. draw ers and boxes, in bundles of from one to 20 coins each tightly wrap ped in cloth and paper. Other bun (Continued on Page 2, Col. 3) Catholic Academy Matron Is. Killed Sister Mary L. Hoffer Is Crash Victim; Sister Superior Injured ALBANY, Jan. 17 Sister Mary Loyola Hoffer of St. Mary's Acad emy was killed Instantly, early to night, and Sister Superior Selici tas was hospitalized with a frac tured ankle and head injuries when the two women Were struck by a truck on Ellsworth street near the academy. . ; The two nuns 'were returning from the Southern Pacific depot to meet a little two-year old In dian girl from Klamath Falls whom they' were taking to the academy. The little girl was un injured as Sister Sellcitas pulled her out of danger. - j The driver of the truck was J. B. Foster, mall carrier between (Continued on Pag 2, Col. I) Reed Congratulated on Court Shack Railroad Rate Boost Fought In Northwest Would not Cure Ills of Carriers, Claimed by Several Speakers Damage to Farm Market and Lumbering Cited at ICC's Hearing PORTLAND, Jan. H--Rep-resentatives of the lumber, truck gardening and dairy industries and the mntA nrfttpatpd a nro- posed blanket freight .frate in crease of 15 per cent at an Inter state commerce commission hear-, ing here today before Comm. Wil liam M. Lee. W. B. Greeley, secretary-mana ger of "the West Coast Lumber men's assdeiation, said an in crease would cause a diversion of shipments to other carriers, and that railroads should seek in creased revenue through heavier earloadings and lower unit costs. He said the greater part of rail transportation Involved long hauls, making it impossible to ship a large portion of medium and low grade lumber products because of low value in com pari son with shipping costs. He cited establishment of com petitive rates in eastern territory, on the basis of heavy earloadings and increased volume, as a dem onstration by the railroads them selves of a means of financial re covery. J. H. Bloedel, president of Bloe- del-Donovan Lumber mills, Bel lingham, Wash., and J.' D. Ten nant, vice-president of the Long' Bell Lumber company of Long- view, wasn., gave similar iesu mony. i Examiner H. C. Faul heard tes timony of farm representatives In a separate room. Ervin King, mas ter of the Washington State grange, said farmers were de pendent upon reasonable transpor tation rates to market, and in creased rates would put northwest producers at a disadvantage be cause of their isolated location. He predicted the increase, if al lowed, would encourage barge shipping on the Columbia river. Peter Binn, Milwaukie, Ore., vegetable grower, said northwest produce was marketed throughout the area west of Chicago from the Canadian border to Mexico, and that present freight rates were met with difficulty because of the (Continued on Page 1, CoL 2) Choice Favorable Bid Received Here OnCityBonils Interest 2 per Cent and Premium Offered by two Companies Council Asks Offers on Power Plant, Would Lease Ditch Use The Atkinson, Jones & Co., Baker vrrtvce & Co. bid on the M8,lf""ue of city improve ment! Jf 2 per cent and 100JSoJfcach $100 par value, wasJf" fn y the city council lastl Ffej,TL?- he mL. .'epted, out of four suTjiiiirrert C.s considered to be the most favc,-aDle offer on Sa lem bonds ceived in the last two years. Other bidders were: Conrad, Bruce & Co., bidding 2 per cent and payment at rate of $100.03 on each $100 par value; Blythe & Co., and Jaxtheimer Co., 3 per cent and $100.77; state bond commission, bidding separately on bonds numbered 1 to 60 at 2 per cent and bonds numbered 61 to 97 at 3 per cent, all payable at $100.24 per each $100 par value. City Power Plant Sale Recommended The council adopted a resolu tion to advertise for bids for the sale of the city power plant ac quired with the Oregon-Washington Water Service company purchase, and that the city's (Continued on Page 2, Col. 6) New Poultry Bill Is Facing Council Three Requests for Action on Sewer Complaints Read at Meeting Along with sustaining Mayor V. E. Kuhn's veto of the anti fowl slaughtering ordinance passed by tbe city council Jan uary 3, that body last night re ceived a new ; ordinance, intro duced by Alderman M. D. Ohling, which prohibits the slaughtering or k-eping for Slaughter of fowls within any district in the city limits except in class four unre stricted districts, and referred it to the health and sanitation com mittee. Three petitions and requests to the council for action on sewer age complaints were referred to the committee on sewers. They included: A request from residents in the vicinity I of South Liberty street, betvssen; Leslie and Oak streets for a sanitary sewer there; a petition for investigation of the sanitary sewer in the dis trict adjacent to the territory be tween Market and Nebraska streets, and 17th and 19th streets; and a complaint including a bill for $3.50 damage from Mrs. Leo Hanson, 160 East Miller, regard ing the sewer' condition at Sag inaw and Fir streets. The sewer committee was piven power to act (Continued on page 2, Col. 2) Atlantic Storms Damage Shipping NEW YORK, Jan. 1 Ships lashed11 by gales in mid ocean and the .snow-mantled northeastern seaboard shared the severity of winter today. Several deaths were attributed to the storm on land and a freighter was distressed at sea. The largest liners on the At lantic, Including tha Canard White Star's Berengarla and the Italian : Vulcanfa, deported their arrival! her would b delayed as much as a day by winds and snow. ;; ' ; " t Ships from southern ports, es caping the brunt of the storm, proceeded cautiously, with ' high winds their major handicap. . New York. City's much-practiced bfft seldom-used "snow fighters" were -ready to mop up after a wet twirling snow. Little of it stuck . on the pavements,' but it spread; a traffic-complicating blanket 'upatate with sub freezing temperatures. -: VANCOUVER, B. a,' Jan. 17. (AVThe cellar-dwelling Spokane Clippers protected a first-period goal tonight to s gain a 1-0 victory over the Vancouver Lions and climb within two points of a tie for third place In the Pacific coast hockey . league. BUTTE, Mont., Jan. 17.H5V Tony Chaves of Los ' Angeles pounded out allO-roond decision over Hubert Dennis of : Bozeman tonight to retain the ; Montana lightweight championship. Late Sports : Admits Slaying of Chicagoan A nd His No Negotiation Yet in Portland Printers' Strike Effects Spread, Hawley Paper Mill and Other Firms Cut Crews Labor Conciliator Gram Sees no Immediate Peace, Is Hopeful PORTLAND. Jan. H-(jpj-E. P. Marsh, federal labor conciliator. said tonight he did not expect an immediate settlement of a dispute over wages, ' hours' and arbitration which led to a strike of 2 4 5 printers, which closed down Portland's three daily newspapers Saturday. "It may take some days to get the parties together," he said. "I'm watching for the first gap in order to insert a toe. This situation is of such moment, not only to the pub lishers and the men, but to 5,000 other persons because their daily Incomes are directly af fected. There is scarcely a home in Portland that one of the pa pers does not enter." Marsh viewed the strike as a "family affair" because bo many of the printers have worked In Portland most of their lives. "Many of these men have worked on on paper 2 5 years or more," h said. "It is a quarrel in the family and it is unthinkable that it can't he broken." Like spreading circles of wa ter, the e t f e c t s of the strike grew today. The big Hawley Pulp and Taper mill, doing $8 0,-000-a-month - business with the three newspapers', ' Oregonian, Oregon Journal and News-Telegram, laid off 100 employes and Jack Smith, company executive, said 600 others, would be af fected if the strike continued long. The Teamsters' union esti mated that 50 to 60 drivers hired by private companies un der contract to deliver news papers had been laid off and a large engraving plant handling the work of major advertisers dismissed three employes. The representative of a large ink company said there would be a labor layoff in his plant if the strike lasted. Third Sawmill in Portland Reopens PORTLAND, Jan. 17.-)-A third Portland , sawmill, closed last August because of a Jurisdic tional dispute between the AFL and CIO lumber workers, re opened today and negotiations were reported under way between the management and employes of two others. A. Leo Johnson of the B. F. Johnson Lumber company said the company plant at Linnton, which resumed- operation today with one shift of about 60 men employed, would continue on an eight-hour, five-day week basis. He declined to discuss collec tive bargaining arrangements. M. H. Jones of the Jones Lum ber company said the company had informed employes of condi tions under which it would re sume operations, and that the mill would reopen Monday if the terms were agreeable to the men. Businessmen Undistributed Profits Tax WASHINGTON, Jan. 17.-ff)- The first business spokesmen at public hearings . on the administration-approved tax revision plan advised congress today to kill the undistributed profits r tax . Instead of modifying it and to broaden the base of Income taxes. , M. L. Seidman, chairman of the tax committee of the New York board of trade, was the first pri vate witness before the house ways and means committee. ', The undistributed proflUtax stands before the country today thoroughly convicted as an unde sirable tax and as harmful to bus iness and to confidence, he said. "It has earned its execution. Let it die." n -" - M The recommendations on which the committee Is conducting hear ings would lift the levy from cor porations having incomes of less than $25,000 a year, but retain its principle for big corporations. Seidman also called for aboli tion of the present system under Partner in His Confessed Slayer Caught 1 A - CHARLES S. ROSS Kidnaping of Last Autumn Is Solved Ex-Secretary of Victim Is Witness; Ross Seized Upon Lonely Road CHICAGO, Jan. lS-(Tuesday) (P)-Charles 8. Ross;: 72-year-old business man who had re tired .with a comfortable- for tune made In real estate and th greeting card Industry, was kid naped last September 28 by two men who stopped his gleaming limousine on lonely Wolf road near the Westward Ho golf course. . j ' He was returning to Chicago from Sycamore, 111., where he had dined j at the Fargo hotel with his former secretary. . Miss Florence Freihage. On the return trip to Chi eago, ;MIss Freihage told police and federal agents later, she and Ross noticed a car in the rear seemed to be following them. I "We ha! gone hardly half a mile," Miss Freihage said, "when Mr." Ross said he believed he would draw over to the side of the road and let the other car pass. When w slowed down the other car moved ahead and then cut in, forcing us to stop. One . man : got out and walked over to us. He showed Mr. Ross a pistol and said he would f hoot unless the door of the car was unlocked. "Mr. Ross obeyed. When he was told to he stepped out . . , The man with the pistol said, this is at kidnaping; my boss said to bring you along.' Mr. Ross went without resistance." Oliver Heads for Webfoot Campus M. TUCSON Jan. 17 (JP)- G. A. "Tex" Oliver, University of Ari zona, football coach, left for Eu gene today! to interview th Uni versity of Oregon athletic board on the head football coaching po sition. Oliver said he would discuss the post but he was not a candidate. Urge End to which capital : gains are lumped with a taxpayer's other ' income and subjected to income taxes. In addition to recommending that the undistributed profits tax be made Inapplicable to small cor porations, the tax 'subcommittee of the ways and means committee has proposed a "smoothing out" of the capital gains levy.-- . Seidman' countered with a pro posal for returning to a former ar rangement j under whlph a flat 12- percent . tax was imposed - on capital, gains. - : Chairman Vinson v (D-Ky), of the tax subcommittee, read from hearings In 1936 on the undistrib uted profits levy in which ..Seid man said the New York board of trade considered the tax '."sound In principle." However, Seidman said he had opposed putting it into effect at that Ume. Benjamin C. Marsh, executive secretary of the people's lobby of (Continued on Page 2, Col. 7) v ' j Abduction Several Bank Holdups Also Are Admitted Large Portion of Ransom j j Money Is Recovered, Hoover Declares Peter Anders on His Way East; Was Recently, in This Vicinity LOS ANGELES,, Jan. l-7yP-. Edgar Hoover, head of the federal -bureau of investigation, tonight announced that Peter Anders had been arrested and has confessed to the kidnap-slaylng of Charles S. Ross in Chicago last September. Hoover, who arrived here from Washington last Saturday, said . that Anders was arrested at Santa Anita track last Friday after ar riving from New Orleans four days before. Anders, Hoover said, not only confessed that be killed Ross, but also admitted the slaying of his associate in the kidnaping, James Atwood Gray. "We have recovered $14,402 ef the ransom money," 'said Hoover. Ross, wealthy Chicagoan, was kidnaped last September 25. His abductors demanded and were paid $50,000 ransom. This was turned over to them near Rock ford, 111., on October 6. . Two days after payment of the ransom, Hoover said, Anders shot to death both! Ross and Gray. Hoover said that Anders operated . under various aliases, among them , Elbert March, Marshall Eaton and Ray Crants. - .... Admits Share in . , Bank Robberies He said that Anders confessed , further to participating in the rob bery of about 20 banks through out the country. Anders made his confession here today. Hoover said, waived removal proceedings, and was sent Chicagoward to night. x Since payment of the ransom money. Hoover said, Anders, had . traveled widely, having been in Spokane and Seattle, Portland, , Ore., Chicago, New York CHy, Philadelphia, Washington, D. C. Miami, Fla., and New Orleans. He had been "playing .the ; races" freely. Hoover said. ; "The bureau was close behind . him on every move, ".said Hoover. "He was arrested when passing some of the ransdm money through the pari-mutuel windows at Santa Anita." Hoover said that since his arriv al in Los Angeles, Anders had been living at a downtown hotel, ' He said that the prisoner's con fession covered 27 pages. Formerly Logger In Spokane Region The head of tha G-men lauded the work of the Los Angeles bu reau, headed by John H. Hanson, in the seizure of Anders, and said he had received "excellent cooper ation" from Santa Anita track of ficials. Hoover described Anders as about 30 years old, of no known address, but a former logger near Spokane, Wash. He said the pris oner is about five feet, eight inch-' , es in height, 135 pounds in weight and wiry in build. State Council of Clerks Chartered The " American Federation ef Labor has authorized issuance of a charter to the newly-formed Oregon ' state council of retail clerks, delegates from the Salem clerks union who attended a state meeting of the council at Port land Sunday reported yesterday. Presentation of the charter is ex pected to take place In the near future. ' Delegates from T2 clerks locals In, Oregon and Washington at tended the meeting in a gesture.' of, approval of a tieup between the councils of the two states for Joint action. The Oregon council; voted to hold its annual conven tion at Astoria in July. - Salem delegates included EI via Thomas, O. W. Kennedy, Wen dell Cross, Frank Porter and Lee Ray. " B A L LADE of TOD A y By R. C. 'You can't get away with if oft - has been taught, but kid napers, bandits and similar scum, refuse to believe It until . they . are caught they can't, leam that lesson because they are dumb 5 .1