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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 10, 1938)
4 " - -"I Art Appreciation Hundreds of Statesman, readers hare taken advan tage of the exceptional of fer of famoos painting re production u nomliil cost. . - Weather.- Increasing cloudiness to- . day, Friday unsettled; prob ably rain; Max. Temp. Wed- nesday 61, Mln. S, river 4 J feet, southwest wind. . t ii POUNDDD 1651 EHJUTY -SEVENTH YEAR Price 3e; Newsstands 5e No. 293 rm am fl iw . ,. Salem, Oregon, Thursday Morning, March 10, 1938 V - : ; ;, : .... :, ' y4 WWJ I ftTITl II TV (brovemmeint WiM K House Revolts To Turn Down 66 .95 Vote Is 5 180-124 Against Administration Item; : - . Demos in Huddle Bill Sidetracked, : Rumor Says Another Effort - may Be Launched ? ;- " WASHINGTON, March A house revolt against the ad ministration slashed . from the tax bill today its roc st widely criticized orovislon a surtax on family-owned., and , closely held . corporations. ; " ,f - . These werejhe immediate re sults: - The house sidetracked - the revenue hill at least until to morrow and perhaps for several days. " . Chairman Doughton (D-NC) of the ways and means committee rushed away to notify President Roosevelt ot the ISO to 124 tel ler . vote ;t by which the house - knocked out the surtax and to dlseu3 Its implications. Democrats Huddle To Seek Solution Democratic . committee mem bers met in an emergency ses sion to try to figure out some way of making np the estimated $30,000,000 to $45,000,000 in revenue which the so-called "IB" tax on closely held firms would yielded. ; Republicans suggested the bill had been laid aside to give ad ministration forces an opportun- ity to whip balky Democrats into J line and try to reinstate the 'IB" levy- on a roll call vote. Bat Doughton said that while he probably would have to de mand such a vote, he had little hope that the tax would be re stored "I am not excited, I 'am not nervous, he told reporters. "Thlsis a good bill wthout IB. I'm not sore. I have no .criti cism to make of the- house or any Individual member -of the house." The vote" against the levy split (Turn to Page 2, Col. 6 ) FUk t Recommended For Customs Collector WASHINGTON. March .-JPy-Acnointment of Fred Fist, now Jtne county judge . at Eugene. Ore. as customs collector at Port land to succeed Milton Miller, de ceased, was recommended, today by Senator Reames (D-Ore.). 7j d d i t i c a ' ... in the N etc WICHITA, Kas., " March 9-B -In what court attacnes saia was an unprecedented action, Dist. Judge Ross McCormick granted two divorce decrees today to one woman from different husbands. Judge McCormick awarded the, twin divorce to Mra. Henrickson Lowden when she explained she Tmnrrirl ftpr heinz informed! remarried after being Informed ler first husband, Herman Hen- Tickson. had been killed in an accident. She said she learned Henrickson was alive following her marriage to . Clyde : Lowden end as a result sought divorces from both men CHICAGO, March Q-(JP)-A giraffe of all animals devel oped a sore throat oat at the Brookf ield zoo today. The victim, named Islolo, was placed In an isolated stall. Sympathetic keepers recalled that giraffe, after eating, low er their beads tote water and; shake them back and forth vi gorously to rinse their mouths. So they filled Isiolo's basin. . with tepid water and a half so lution. They hope sne win gei the idea and gargle. GREENVILLE, Ga., March (iP)-Greenville'g .700 resident in the future will learn immediately when the stork comes to town. Wilbur C Culpepper, superin tendent of the Greenville oil mill, started something when he blew the mill whistle to announce the birth of Ida Lee, daughter of Mr. and Mrs. Warner S. Tlgner, last week. - Several mothers : complained they had not been so honored. Culpepper announced in , the future all that would be necessary for the mill whistle to signal the ' stork's arrival would be for him to be notified. .TOLEDO, 0 March S-iffJ-A broken ler did not prevent 5. B Crouse and Mary G. Ward, Wood ward hiah school instructors. from being married. in a bedside ceremony in Mercy hospital. Levy raimiy The couple planned o wed Feb- I tremely important" If the pro ruary It but two days before the I ducers he represented were to wedding date Mrs. Crouse siippea on the front steps of her home and broke her leg in two places. . nim -At-Km Wn" Minfiv consisted of a ride in senarate conveyances to Mr. Crouse's home: Mrs. Crouse rode in an ambulance and her husband in an automobile. Tells his Ideas On Power Rates j. v.-. v.v--.-. v. :-:-: v,-.v- -.. - N. G. WALLACE Salem Fourth on Coast in Building Ahead of Portland; Gain Over February, 1937, Shown for Area SAN FRANCISCO, March -H. R. Baker & Co., reported today-building permits in 86 west ern cities totaled $15,918,940 in February, compared with $14, 636,451 in February, 1937. The investment banking firm said trends were up in Idaho, New Mexico, Oregon, Washington, Wyoming and British Colombia, and down in California, Arizona, Montana, Nevada .and Utah Salem, Ore., shot into fourth place, behind Los Angeles, Seat tle and San Francisco, respec- (Turn to Page 2. CoL 1 ) Company B Given Praise by Major Members of Company B. 162nd infantry, one of Salem's two na tional guard units, held hopes, of receiving an excellent rating last night after, having stood annual federal inspection. The inspection, conducted by Major L. L. Hamilton of the reg ular army sevenin roianiry, van- couver barracks, wash., began in the afternoon and lasted until after 9 p. m. Colonel Fred West, Portland, regimental commander was present. Major Hamilton declared the local company was in "very ex cellent shape" and was "one of the finest looking groups of men I've seen."- He complimented the unit, which is in command of Captain H. G. Malson, for both its equipment and its perform ance. Major Hamilton will go to Cor- vallis today and on Friday will inspect Company L, 162nd in fantry, at Dallas. Headquarters battery, Z49th coast artillery, the other Salem (Turn to Page z. Col. 6) X 0lC(l0 8 Uayllgllt J 5 :. . Bandits Declared Seattle Kidnapers TOLEDO. Ore., March 9 -&)- District - Attorney L. G. English said two gunmen robbed uniden tified occupants of an antomobile of $60 at noon today. He asserted the victims ldenti fled pictures of. twe Seattle men i alleged to have been implicated in the kidnaping of. five persons last ; Thursday as the holdups. State police blocked all roads In the vicinity in an effort to cap ture the men. The robbed auto mobile was parked on the Beaver creek road in southern Lincoln county. Long and Short Haul Law's Repeal to A WASHINGTON, March M- A senate committee heard today that congress decision on the Pettengill bill would determine whether mldcontinent steel pro ducers increase employment or f further curtail production. The Pettengill bill would re peal the. long and abort haul clause in the interstate commerce act, the clause which prohibit a railroad from charging lower rate for a long haul than for a short one over the same line in the same direction. Robert Hula, Chicago, speak ing r tor iron and steel - maau- I facturers of his district,, said I enactment of the rill was "ex i be given an "equality oi oppor tunity in serving the Important I steel markets on the Pacific coast .nil In th nlf areas. I - ; ' WASHINGTON, March t-av I The Association or American I Railroads said tonight the teight Irate increase tnthorlied by the Uniform Rates For Cities and Country Urged Wallace Opposes Setting up of .Differential I in Service Area Replies to Ross Request for Ideas Upon Rates, Bonneville Power "Postage stamp rates,", though not by that name, were recom mended by N. G. Wallace, state utility commissioner, in a letter to J. D. Ross, Bonneville adminis trator, in response to the latter's request. Wallace had reference particularly to the question of a differential between urban and rural customers, which he open ed. "So far as I know," Wallace said, "there are no retail rates in this state that are based solely on distance from generating plants. It has been the practice of this de partment. In cases where it Tias been necessary to determine the net income and Investment of & utility in each of its service areas. to allocate to each service area upon the basis of use its share of the utility Investment and operat ing costs in the jointly used gen erating and transmission facili ties. "Only two of our utilities at the present time do not pave uniform rates throughout their service areas which are served by the same generating and transmission facilities." Wallace said the rural line ex tension policy made no distinction between generation, transmission or distribution costs but was bas ed solely- upon the amount of new Investment in distribution facil ities necessary to serve only the new customers to be added to the system- .r&. I'T ...crA. "ItTs" my Judgment,M-Wallace continued, "nothing that this de partment has done has been of more value and has met with more public approval than the removal of the differential formerly exist ing in the rural areas." "It Is to be hoped that distribu tion of Bonneville energy, wheth er through public or private agen cies, can be made in the same (Tarn to Page 2, Col. 1) Prune Cannery in Salem Is Favored Members of the board of the Salem unit of the Prune Grow ers cooperative association, meet ing here yesterday,, viewed with favor the proposal to establish a prune canning plant in connec tion with the co-op,! devoted here tofore exclusively to the dried prune. Chairman Fred Ewing said last night that final decision was held up pending a canvass of the co-op membership end that following this the directors will meet again to consider further plans. . The canning plant, if estab lished, will go up on the grounds of the present dried prune plant (Tarn to Page 2, Col. 6) Motorist Pays $25 for Striking, Leaving Dog PORTLAND, March 9 -UP)- R. H. Smith paid a $25 fine In mu nicipal court on a charge of hit and run driving Involving a dog. The case was heard under a new city ordinance making It a misde meanor-to run down a dog and leave It unaided. id Steel, Claim interstate commerce commission was "Inadequate to meet the situation.'. ; J. J. Pelley, association presi dent, added, however, that it '.'will be helpful to the railroads. as far as It goes.'" -: : , ,. Pelley estimated the increase te be about 5.3 per cent above present rates, or approximately S17S.000.000 a rear. Officers of the American Trucking Association, Inc., an nounced today a program lor an upward revision of rates on al commodities on which the I.CC granted Increases to the railroads. The organization said it would file shortly . a petition for the entire trucking industry seeking special permission for publication of a master tariff. Spokesmen for the organiza tion said they regarded the com mission's decision as "a plain in cvltation" for them to follow the advances allowed rail carriers. Pelley's statement said steps were being taken to put the new rail . rates into effect at "the earliest possible date," Difficulty Encountered Picking Jury for Ledford Poison Case r V.' AGNES JOAN o Eugene High Will Come to Tourney Corvallis Falls; Bulldog and Silver Fox Take ' - Tourney Openers TOCKXET ENTRIES District 1 Baker. District 2 MacLaughlin. - District 3 Klamath Falls. District 4 Sandy. District S St. Helens. District 7 University high. District 8 Myrtle Point. District 9 Medford. District 10 Salem. District 12 Eugene. District 14 Chiloquin. District 15 Amity. EUGENE, Ore., March 9.-(JP)- Eugene high school defeated Cor vallis, 23 to 11, tonight to cap ture second position in district 7 and a trip to the state basketball tournament at Salem next week. Eugene won representation be cause district 12, Portland, was out of the tournament following an eligibility dispute. McMINNVILLE. Ore., March 9. Woodburn, Willamette Valley league champion, and Silverton, runner-up, defeated Tigard and Hillsboro respectively, tonight for district 6 and 11 basketball titles and a place in the Btate tourna ment at Salem. Silverton beat Hillsboro, 22 to (Turn to Page 2, Col. 1) Hungary Cabinet Now Reorganized BUDAPEST, Hungary, March 9.-p)-Premler Koloman Daran- yi's cabinet underwent swift re organization - tonight in prepara tion for an elaborate rearmament and public works program. Without formal announcement, the premier threw off armament restrictions of peace treaties and launched the financial and mili tary program he announced at Gyoer last week. It was stated that Daranyi's purpose in reorganising the cab inet was to .drop ministers who were half hearted in supporting his new program and to gather about him experts in technical ana financial matters. Woman Is Killed, St Helens Crash ST. HELENS. Ore.. March - (AVMrs. Mary A.Bercovicfc. C of Portland, was killed and three nersons were seriously Inj ired la an accident on. the Columbia: rj- ver highway near here tonignu : Florence Bercovich. 24; St Vincent's hosoital nurse and danrhter of the dead woman, suf fered a fractured skull, as did Lumonda Beshara, 20, student, adonted daughter. " " Henry Harrison," St. Helens, driver of a delivery truck which collided .with the car driven by Miss Bercovich, suffered a broken ; , .'.?: A. ; . i " xl a- ,j i 'y LEDFORD Jury for Ledford Trial Incomplete 11 Tentatively Selected; Defendant, 111, Will 'TeU Own Story ST. HELENS, Ore., March -()-With eleven tentative jurors selected, the 98 th venireman was subpoenaed today in an attempt to fill the box in the trial of Mrs. Agnes Joan Ledford, 35, accused poisoner of her two stepdaugh ters. The apparently weak and 111 de fendant, who alternated between a cot in the judge's chambers and a rocking chair in the courtroom, will take the witness stand to tell her story of the death of Ruth Ledford, 13, last tall, Defense Counsel Glen Metsker said. .Mrs. Ledford is on trial only for Ruth's death, although she has been indicted for the death of Dorothy, 15, who succumbed about the same time last Septem ber. Metsker made his announce (Turn to Page 2, Col. 8) Draper to Attend Power Meet Here WASHINGTON, March Clauda L. Draper, federal power commissioner, will participate in public hearing this month in Ore gon, Washington and Idaho on proposed rate schedules to be set up In the Bonneville dam area. Draper, whose commission eventually must approve the schedules, was invited by J. D. Ross, Bonneville administrator. The hearings will open at Salem, Ore., March 11, with the view to "obtaining the people's views on the rate to be establish ed for irrigation, Industrial and home use." : The meeting here Trlday will be held in the chamber if com merce auditorium. Multnomah Falls Gift to- State as Park Is Approved PORTliAND, March 9-ffV-The city council tentatively agreed today to give Multnomah Falls and adjacent property to the state for a park.' v The action was proposed when Commissioner Earl Riley said the city did not approve state high' way department plans for recon struction of the Columbia river highway through the park, but would approve transfer of the en tire park to the state so it could work: out Its own plans. i The lodge, which the city bunt at a cost ot ,140,600 would be Included.' Under, the proposed agreement, the state would oper ate end develop the property and make improvements. , ', Coos Road Work Doubtful MARSHFI ELD,. March S-(V R. H. Baldock. engineer of the state - highway commission, in formed Marshfield officials lack of funds would prevent rerouting and widening of state highway 101 through the city for an indef inite time. . 3 ::t . Fascism, Fraud Charged To TVA Heads Director, Field Manager Accused of Operating on Hitler Program Secret Rebates Granted Princes of Privilege Says Sen. Bridges WASHINGTON, March 9-(V Senator Bridges (R-NH), ap pealing for a congressional in vestigation of TVA, asserted to day that an "authoritarian state" had come into being in Tennes see with David Lilenthal, direc tor of TVA, as its "Der Fuehrer. Fred Moses, TVA field mana ger, he denounced as a "Brown- shirt Moses" and a "Hitler in short pants." He should be called to account before a sen ate committee for utterances at tributed to him, the senator said. In a spirited exchange with democratic members, . he shouted that Dr. A. E. Morgan, chairman of TVA, now engaged In a dis pute with Liliential and Har court Morgan, the vice chairman, was "being liquidated." Meanwhile, the three principals In the dispute which has disrupt ed the internal functions ot the authority, and produced a volume of charges of bad faith and con spiracy, prepared to lay their cases- before President Roose velt. Bridges' lengthy address, con stantly interrupted by democratic objections, was aimed primarily at obtaining a congressional inves tigation rather than an inquiry by the federal trade commission, as proposed by Senator Norris (Ind Neb). But its principal practical re sult was to demonstrate conclu sively that the Norris saethod of investigating the agency has pow erful support. At the actual functioning of the TVA, Bridges leveled a long list of charges, including "possible corruption," which he and Senator King (D-Utah) made in introduc ing a resolution for a senate in vestigation. To this list, he added another. Asserting that TVA had entered (Tarn to Page 2, Col. 8) j; Williams Better Says His Doctor MEXICO CITY, March 9 -&)- Dr. M. J. Ferguson Baid today Ralph E. Williams of Portland, Ore., vice-chairman fo the repub lican national committee, was Im proved, i He said Williams apparently suffered a duodenal ulcer and had lost considerabl blood before a hemorrhage was stopped, but there had been uo opportunity to take an x-ray. Williams, 68, who came here for a short vacation with his wife and has been in the American hos pital since Sunday, is "getting along as well as can be expected and is : somewhat better today' Dr. Ferguson said. William Gahlsdorf new State Officer, Hospitals PORTLAND. March 9.-WVThe Oregon ! association of hospitals chose William Gahlsdorf, business manager of the Salem General hospital, a director at its annual convention. Baker Defeats Boise BAKER, Ore., March 9.-(ff)- The Baker high school basketball team overcame a Boise lead in the last three minutes of play to de feat, the Idaho squad, 35 to 33. British Stand Is Bolstered By Concessions From France LONDON. March .-CP)-Grat Britain's efforts toward European appeasement were bolstered today by a. concession from France; to meet -Italian', demands on non intervention in Spain. The government informed Italy and Germany ot the concession and awaited their replies in the hope the nonintervention deadlock might be h broken, removing; this obstacle from, the path of Anglo German! and Anglo-Italian agree ments. : T i '- - This . development came as Prime Minister Neville Chamber lain invited German Foreign Min uter Joachim Von Ribbentrop to talk with him across a luncheon table Friday. - :'-y.)l Von Ribbentrop.. former am bassador to Great Britain, arrived here this afternoon ostensibly to take leave of that post. He al ready had arranged to talk with Viscount .Halifax, .foreign secre tary, tomorrow, - . - His Government To Resign Today Aeeo jk jo "Cnuh ( "J. . - ' I Lottery Program Backed, Umatilla Unit of Oregon Merchant Legislative League Is Organized There PENDLETON, Ore., March 9- (JP)-A Umatilla county unit of the Oregon merchants' legisla tive .league was organized here tonight to assist in a move to amend the state constitution and legalize lotteries and gambling. Sixteen merchants from Uma tilla county towns attended. John W. Van Horne. Seaside organizer lor tne league, sam ap proximately 40,000 signatures had been, obtained on the initia (Turn to Page 2. Col. 8) . . i Whitney Assumes Failure's Blame NEW YORK, March 9 -P)- Richard Whitney, five times pres ident of the New York stock ex change, assumed full responsibil ity today for the failure of his brokerage firm and admitted to wrongdoing in the actions which led to the firm's collapse. His statement followed the tea timony of Robert J. Rosenthal, the firm's cashier, who declared Whitney, without authorization, so far as he knew had caused to be turned over to him large blocks of securities belonging to others, without notification to them. Atty Gen. John J. Bennett, in Albany, after being apprised of Whitney's statement, said the in vestigation by his office would be pushed to the fullest, limit. Pub lic hearings will be continued to morrow, with further examina tion ot Whitney's partners by Asst. Atty. Gen. Ambrose V. Mc Call. Italian Chamber May Be Revamped ; ROME, March 9.-PV-The pre- I fascist chamber of deputies, twice oraerea aDonsnea in tne last iour years but still kept In existence, appears to be on the verge of be ing transformed. . Premier Benito Mussolini has summoned the fascist; grand coun cil to the Palazzo Venezia for 10 p. m. (4 p. m. EST tomorrow to hear a special commission's re port on substituting for it a cham ber of guilds and "fascios," units of, the fascist party. : The new governing body would give Italy a legislature in which the people would be represented through their economic categories. , France consented to reestah- lishment of nonintervention con trol of her Spanish border as soon as international commissions be gin counting foreign fighters .to be withdrawn from Spain. Italy had Insisted that border control start as soon aa tha commissions entered Spain. Informed quarters, however. bad no hope for an : immediate Anglo-German . settlement since Reichsf uehrer- Adolf HiUer does not want to talk now. .' The principal hurdles standing in the way of an accord between London and Berlin were: 1. Germany . insistence on her "absolute right" to colonies, with no promises in return. t. Her reported - demand " that the British press change its atti tude toward nazls. r . S. Her apparent decision to re gard her action in central Europe as an . affair of concent to Ger many alone. Leftists Deny Decree Power Over Finances Leon, Blum to Get First Chance to Form new Cabinet, Belief Defense Program Costs Deemed TVIain Factor Causing Crisis PARIS. March S.-;p)-The "middle-ground" government of Premier Camille Chautemps to- J night decided to resign Thursday because of left-wing opposition to granting the premier decree pow ers over troubled French finances. The radical-socialist premier said he would address the nation . tomorrow morning f r.o m the chamber of deputies rostrum and then "tender his resignation to Pres. Albert Lebrun. , Political observers expected the president to offer the premiership immediately to Leon Biam. nea of the first people's front govern ment, whose socialist party holds the largest single bloc of chamber seats. Parties of Left Won't Grant Power The resignation decision cami , during a three-and-a-half-hour cabinet session after socialist and communist members of the pre mier's chamber majority refused to grant him wide powers he re quested to deal with acute finan cial and economic problems. France's r a p i d 1 y increasing armament needs were blamed tor the financial crisis. The cabinet, composed largely of Chautemps own radical social ist party members, wai constitu ted January 18, succeeding the ; v second people's front government which Chautemps also headed. It will have 1 a s t e d 51 days, the . 103rd government since forma tion of the third republic. . Behind the new crisis w era these main problems facing France: ' ' 1. The necessity for borrowing 15,000,000.000 francs (3480.000.- . 000) during 1938 for, national defense needs that grow in pro portion to the rest of Europe's arms race. 2. The fall of the franc to a new 12-year low. . ' 3. The necessity for Increasiis production to raise the nation's income and strengthen . national defenses. Conservatives hold this means a temporary halt in social reforms and abandonment of the . 40-hour week in key industries. 4. Leftist opposition to follow ing England in a "deal" with Ger- many and Italy. Prime Minister Neville Chamberlain's new policy that caused Anthony Eden to re sign as British foreign minister. Court Victory Is Won by Brewers LOS ANGELES. March The brewery workers' union won its fight with the teamsters' union " today for control of California: brewery truck drivers, when Fed eral Judge William P. James signed a permanent Injunction re straining the teamsters from using coercion, intimidation or violence against the BWU. Judge James ruled the brewery officials must deal with their ac tual workers through the properly1 selected bargaining agency, the BWU. The court also held that the teamsters had ".assaulted and beaten and caused to be assaulted and beaten, the actual workers, the employes in the delivery de- partment of the defendant brew- ' ery companies." ' - ; ; ' w J i "The defendant ' brewery com panies have a right to conduct their business" unmolested by pri mary and secondary ; boycott,"". Judge James' ' ' opinion stated. . "They .have a right to have their physical properties, products and employes free from harm, injury or violence and to negotiate with their actual workers, their ia ployes, free from interference, in timidation and coercion by any one including the teamsters.". William E. Wheeler Dies r PORTLAND, Ore Mareh t-P) Friends here learned today of the death at San Francisco ot William E. Wheeler, son of J. E. Wheeler, tlmberman and former publisher of the Portland Tele gram. . .-, ' . - B AL LAD E of TODAV By R. C , -When America changes -presidents, once every four, some times eight years, it's made a monstrous issue which Involves the nation's fate; but European countries, when they want to .change premiers. Just toss them out without a thought ot "dis aster" to the state. .