0T . -.
LC. FCU3
StateMau
Bits for
Coming out of His 20-Year Nap
DTevs Behind Today's New
v
Cy PAUL MAI fO!i
!j (ttgoti
!
'
if
No favor Svmyst Va: No Fear SkaU Atce
-Prom First States man. March J. ISM
THE STATESMAN PUBLISHING CO.
CHArttTrSa A. SI'RAOUB. President
Member of rhe Associated Kress
Tbe Associated Pre Is eiclnslveiy entitled to tbe use fur
publication of ill oews dispatches credited to tt or not Other
wise credited in paper.
Public Power
Public power took a lieki-if in the special elections held
simultaneously with the primary. In most of the proposed
districts jthe defeat was decisive. In view of the size of the
Portland district and the fact that no PUD proposal had ever
been voted upon there previously, it might be said that last
Friday was the public power's darkest day in Oregon history.
Utilities Commissioner Bean came forward on the fol
lowing day with a proposal that the Portland General Elec
tric company and the Northwestern Electric company be
merged. Since Northwestern operates in Portlandonly, this
issue may seem to have only academic interest for Salem and
the other outlying areas served by PGE; actually it is as
pertinent here as in Portland, for these areas would benefit
equally if the merger resulted in any reduction in costs. -
Before attempting to evaluate the merits of any such
plan it is necessary to analyze the reasons for the PUD de
feat These have variously been identified as (1) resentment
at the interference of the Bonneville administration and oth
ers connected with the federal government; (2) fear of dic
tation from Washington after the PUD came into existence;
(3) uncertainties of the eventual interpretation of the PUD
law especially with respect to taxation; (4) realization that
tot the two opposite forms of public ownership, old-fashioned
municipal ownership has apparent advantages; (5) lack of
confidence in the PUD sponsors' leadership and (6) lack of
faith in public ownership as a principle.
It is practically impossible and more or less futile to
evaluate the weight exercised by the first three arguments
since at least two of them are rather transitory. But it is
imrtortant to evaluate the last three because they have a
bearing on the future solution
land for instance already has municipal ownership oi its
water utility, as has Salem; and Portland voters have al
ready sriven their city officials the preliminary authority
necessary to go into the power business. The chances are
that there will be an immediate campaign to put that author
ity into action. That will mean a vote on a huge bond issue
and thus there will be provided a real test on the question
involved in tike sixth arxumest listed above. It is safe to say
that such a proposition would
than the PUD did largely
argument would be eliminated.
On the other hand such a vote would pose a "cold cash"
question and there is as yet no assurance that it would carry.
The outcome in case it is offered is of direct interest to
Salem. If the PUD had been approved Marion county would
have become a power orphan; on the other hand if the Port
land municipality goes into the power business Marion county
electricity users might get the benefit of any rate reductions.
The other possible results are too numerous to mention, but
one of them if the present PUD law is valid in all respects,
which the attorney general denies might be that Marion
county would be precluded from voting on a PUD!
Thus it is evident that the question is extremely com
plicated; but Its complications are not such as to prevent
or discourage he two power companies from proceeding with
the proposed merger. Unless there is to be public ownership,
in fact, the merger is virtually necessary, for the Bonneville
administration has indicated that it will not over a long
period sell power to both existing companies. Whether it will
make a long-term contract with one remains to' be seen.
V The Question Still Begs
Few and elemental have been the protests raised against
the president's speech on national defense. One has come
from the doctrinaire isolationists, the peace at any price,
even national extinction group, whose ideas are fairly clear
and need not be dilated upon. Another has come from an
pposite group which deprecates alleged action on the part
of the president in not' telling the nation how deep its in
volvement abroad is or was and for not calling sooner for
an adequate national defense. This view is not necessarily
I - partisan, but does seezn to be in serious error.
One i inclined to believe that had the president had
ids way this country would long since have had a navy much
greater than the one which it boards at Pearl Harbor, and
that its army would likewise have received far greater ap
Vipropriationa than the congress saw fit to give it in the
W period after 1936. The best evidence of this is the extreme
interest in international affairs which the president took
during the rise to power of the Bavarian house painter,
and his evident impatience with members or congress who
sought to disparage hia ineffectual efforts to influence the
course of events abroad. There was the famous "frontiers
n the Rhine remark of 1939, which brought Wood pressure
ef the foreign affairs committee to explosion point, but
which failed to influence their later actions. There have been
countless times since when tiie president, by implication or
direct reference, rnxtght to convey to the nation at large his
riew of the great seriousness of foreign aggressions.
During1 this period the president was, in his way, far
more advanced than the bulk of the nation, which was con
tent to depend on the Atlantic and the Pacific as the con
tinent's unassailable'- bulwarks. It was he who sought to
convince the nation not with complete candor, it is trne-"-that
the Nazi expansion was a potential threat to America;
and it was the nation which pooh-poohed his utterances, and
7 found his speeches verging on the inflammatory.
, Then came the Dutch-Beltrian invasion, the craekinir of
1 the Maginot fortifications. The
- more than implement the tales of threats from abroad which
he had previously expressed with a request for actual arms
aid actual ships, and waa met with wide and instantaneous
acclaim by a people who, having been so long from Missouri,
wiere at long last convinced. It was not the president who
failed, tell the people of their .involvement; it was the
people who ref used to believe. " X f -
This is presented not with the idea of -defending the
president pr of commenting on the changeability of the
popular mind; it is suggested as a clearer picture of what
actually happened, whether good, bad or indifferent. The
!only conclusion which one may "draw is ; that even yet 'the
question is not decisifeljr settled whether this country should
,0 should not be fundamentally isolationist and non-inter-
. jventionist. The president has long sought to tell us that we
Vare in danger, and the country only now has-come to agree
. with him- But one looks in Tain for any fundamental en
largement of the German threat to America, ije any ex
tension of German aspirations beyond what they were two
years ago when the president first warned of them; and
rate phservns on the other -side that the president's requested
appropriations are far t inadequate ever to provide the
l-esources necessary to stem a truly first-class blitzkrieg.
In other words, the country has changed its view of events
abroad, and has bought its peace for three billion dollars ;
yet the fundamental questions still are begging.;
Some Smart Alec on the BeUingham baseball squad rpent
most of hia time in Salem hollering "Zits", at the Whiskerin
os. Whose j-oat he expected to get, it would be hard to imag
ine. '"All he succeeded in oing was to make a monkey of him
iself. We sincerely trust that in their travels throughout the
northwest the Salem Senators will so comport themselves as
to create good will for, and a good opinion of, the city they
represent. - - - .. .
Takes a Licking
of the power problem. Port-i
come nearer receiving approval,
for the reason that the fifth
president last week did little
By R. J. HENDRICKS
More about early 6-21-40
Oregon postdTXIcei i y
and locations of Salem
postoffica In the old days:
- : "la W
(Continuing from May- i 8 th
Mm. George J, Pearcey 26T North
Winter street, Salem, remembers
where the Salem postoffice
located d urine the administration
of John Hamilton,' seventh
to the hold the office- of poet-
master, la tbe 1164-5 period.
She waft a Terr smair girl then
but her people lived on the sec
ond floor of a rambling; building
that stood on the south side of
State street between Commercial
and Front, west of the alley-
next to where work on the erec
tion of the new Murphy building
is coins- forward; the new struc
ture to take the place of the his
toric building that in the old days
was called the Griawold block, or
more otten Gri wold's block.
Mrs. Pearce. as a little rlrl
knew and liked John Hamilton,
the postmaster, and the could
look down from the home of her
people and see customer of tht
postoffice come and set their
mail for the postoffice was then
In a building; that stood where
the new Salvation Army home
now stands; and the Hamilton
family lived in tbe back part of
the postoffice building, facing the
alley between Commercial and
Front streets, north side.
Another historic scene has
fixed the mind of Mrs. Pearce
indelibly upon the surroundings
of the postoffice site of that day.
Briefly: George P. Beale, saloon
keeper, a fine looking, man and
popular, who had come aa a boy
with his people la the great 1843
immigration, had a saloon in the
wooden building that stood where
the Marlon hotel stands now. A
patron of his. George Baker,
butcher, had conspired with him
to commit murder in order to get
a large sum of money.
"a
So, on Sunday, January S
1885, Beale and Baker went
from Salem to where was the
famous watering trough on the
Turner road that runs through
ke tate penitentiary annex
matter of a xntie or less from the
what is now land belonging to
site of the buildings of the an
nez: where was -once the Oregon
state reform school for boys.
At the spring, Beale and Baker
arranged disguises in an attempt
to hide .' their Identities. They
blacked their faces, to represent
negroes. Then they rode on south
to where the town of Turner is
now, and there turned west and
proceeded less than a mile, to
the home of Daniel Delaney,
marked as the rlctlm of their
dire conspiracy.
a
They murdered the unsuspect
ing man, haying called him to
his front door, and took his
money; a good deal of it, in
gold; over $1400, perhaps $2000
or $3000 or more.
But the murderers did not
reckon with "the nigger in the
woodpile;" for a small colored
boy and his mother .were servants
of Delaney, and the boy, fright
ened at what was going on, ran
and hid in the woodpile. Ills tes
timony became important at the
trial of the men for murder.
There "was enough other testi
mony to make a clear circum
stantial ease.
a la S
For some reason or other, the
trial of a part of the ease was
held in "Oris wold's brick;" or at
least the sentencing of the men
to hang was done on the second
floor of that building. The trial
had- commenced Monday, March
20, and the verdict was rendered
March 25.
The men were hanged Wed
nesday. May 17, 18S5, upon i
gallows erected under two oak
trees on a present well known
street in Salem which was then
in the country, not surrounded
by buildings. Tes; this writer
knows the exact spot. Bat he
does not tell it, for obvious rea
sons.
V
Bnt practically the whole Wil
lamette valley's mature male
population saw the hanging, for
such executions took place In
public then.. It was a great spec
tacie. About 5000 people were
present."
Some years later, a new state
law was enacted, prohibiting pub
lic hangings. Then, when one was
decreed, a temporary enclosed
gallows was erected near the
court house. The writer recalls
a good many, in this section. In
the 1880s and early 1890s; to
all of which he was invited, and
none of which he saw except
that of Joe Drake, the colored
boy. In early 18S5.
Then came state prison hang
ings; all legal executions in Ore
gon. Then came the abolition of
capital punishment,- by vote -of
the people. Then, after a horrible
murder, another state wide vote
reinstated capital punishments in
Oregon. : i .
Kow they are administered at
the state prison. In a gas cham
ber, which is not often used.
.
Bat all this matter, about the
crime of. Beale and Baker, and
their public execution, la pre
liminary to the telling of what
a terrible day the mother cf Mrs,
Pearce had on the date of the
Beale and Baker hanging, c
The mother, of the little girl
had been close to some of the
scenes leading to the hanging.
The sentencing of the ni, by
Circuit judge Reuben P. Boise,
as above stated, was In the Gria
wold block, -next to the home
presided over by the little girl's
mother. But the mother wanted
to get away from the scenes of
the hanging, and from the excite
ment of the crowd. She took her
children to her father's home, on
Hlsh street, noar Center, i west
side, where the Chambers build
ing is now. t , ,
(Continued tomorrow.) .
; Burns Fatal to Child
PORTLAND. May 2 0-C-Ra-mona
Johnson, T, died yester
day of burns suffered when her
dress caught fire April 7. She
was . the daughter of, Mr and
Airs. Herbert S. Johnson.
fiJ
-AKSifr'-
. . . ' !
ISXM TOmSDAT 1300 Ka.
:S0 Milknsa KalodiM.
7;30 Nvw.
T:49 Sing Song Tina.
S :00 Neirra at WaoderafU
S:80 Kaws.
8:45 Cartars ef F.lat Straat.
S:O0 Pastor'a Call.
9 :1 S Wmtarnairaa.
:30 Lat'a Due.
:45 Kmb Fit ta at aaio.
t0:O0 NtTi. '
10:13 Mt Perklm.
10:80 Hita af Saacaaa Past.
10:45 Backcior'a Gaitdraa.
11:00 Oar rrwidlr NiKbers. -11-.1S
Wosms ia tna Kawa.
11 :20 Mnsieal Imtarlada.
11 :30 WillaaMtta X'aJYaraitr Caaaal.
11:45 Valaa Paraaa.
11:15 New.
12:30 HillbiUr Sartaaaa.
13. 5 WiUaawtta VUy Oplalaas.
13:50 Salaat Kiwania Olaa.
1:15 IataraaUag Pacta.
1:30 Vaa lltiuier Orcaaatra.
1:45 Maaleal Mamoriaa.
3:00 Balam Art Ceatar.
3:15 atoaieal Mafaariaa,
3:30 Hita aaa Escorts.
2:45r Wa Taa Womaa.
3:00 Maddax Family Baaa.
8:30 Tow Maiahtor.
3:45 Carol LeightcK.
4 :00 New.
4 :15 Pepalar Xalodiaa.
4:80 Marrilea Trio.
4:45 Malaar Mart.
5:00 Mait the Stars.
5:30 Baloa Echo.
5:45 Little Orphan Aaala.
S:00 Toalgat'a Headline.
S:15 Diaaer Hoar Halodiea.
:30 Vewa and Viewa Joaa B, Huliea
6:45 Orgaa MMin.
7:00 Pafinr taa Paat.
7:15 ElUett Booeerelt.
7:8S Melodic Kecda.
7:45 Amerieaa Paauly Bobiasoa.
8 :00 Keva.
8:15 MePaxland Twiaa Orcaaatra.
S.-80 Salem Ceirteaoial glagar.
8:45 TwilifBt Trail
8:00 Ntwtpeper af taa Aic.
S:15 Doa't Toa Beliara IV.
t:3 rLtoa La via. Jr.
The Safety
Valve
Letters from Statesman fteadent
DEFEND AMERICA AT BOMB
To the Editor: Though we gave.
rarious European nations billions
of dollars and sent our defense
less men OTer there to tight In
1917. 1M0 finds many of us
eag-er to go back orejE again In
ngDt to tna imian, mot wnatT
To saye Democracy? According
to the wealth of propaganda let
loose by radio, screen and news
paper and magazine, yes. Actual
ly the present war. like the other
one. Is a struggle for the balance
of power. England has held that
priority for centuries and Ger
many wants to break that hold.
Also. Germany la retaliating for
the humiliations, and denizations
suffered for years after the Ar
mistice of 118. -
In- the summer of 193S and
from then on through fall and
winter. Germany nresented a sin
gularly .prosperous and contented
aspect. I cannot now Imagine that
it people wanted t& invade Hol
land and Belgium nor the other
countries of Poland and Finland.
etc They already knew what war
meant.. But Hitler was bent on
beating England and her stooge,
France, to the draw. So 'he de
cided he would kill anti-Naxlism
zor gooa ny appropriating sur
rounding countries, despite the
warnings and the letters and the
prayers of Pope Plus who, like
all the popes, defended the rirhts
of minorities.
Hitler began by persecution of
organised religion, particularly
Catholicism and Judaism. Albert
Einstein - says that "Only . the
Catholics offered any organised
resistance to the Nazi creed."
That Is why so many of that
faith including hundreds of
priests hare been disrracefaUT
executed, while thousands were
Imprisoned.
Nonetheless, while we ehonld
help the Lowlands". Poland , and
the rest financially because of
Christian charity, there Is no
reason for again ' Culttinr ear
shores and flsntinr In Enrone.
DEFEND ODR OWN SHORES
WITH ADEQUATE ARMAMENT
BRING BACK CHRISTIAN
ITY TO AMERICA OCT Tf
THfi ROOT OF OCR OWN
EVILS AND ENDEAVOR TO
CORRECT THEM THAT WILL
SAVE DEMOCRACY. .... ,
, Joseph M. PortaL
Radio Programs
8:45. Cases Poster Orcaaatra.
10:00 Phil Harris Orcaaatra.
10:30 Sterliag Yevaf'e Orcaaatra.
11:00 Ke-a-s.
11:15 Jimmy J or Orcaaatra.
11:80 The PUybcya.
11:45 Midaicht Melodies.
e
' KOW TTTESD AT 8 38 Xa.
:30 Snariae Serenade.
7 :00 Newa.
7:15 Trail Blaiera.
7:45 Sana Hayea
8:00 Indiana Tndlro.
8:15 Dinainf Siatcra.
8:30 Stan of Today.
9 :00 Hotel Tail Orchestra.
S AS Eleanor BoottTelt.
8:80 N a tore Sketches.
8:45 Ir. Kate.
10:00 UgUt at the World.
10:15 Arnold Orimar'a Daasntar.
10:80 Valiant Lady.
10:45 Hymns of All Caareaes.
11 :00 Story of Mary Martin.
11:15 Ma Perkiaa
11:30 Pepper Yoaaa'a ranuly.
11:45 Vie and Bade.
13:00 Portia Blake Tares Life.
13:15 Stella Dalian.,
13 :80 Stars of Today.
13:45 Blsa Plate Special.
1)0 Girl Aleme.
1 .30 Midstream.
1:45 The O'Neille.
3:15 MaUalaa Claire.
3 :35 Associated Praaa Kews.
S:30 Aceiast tba Storm.
3:45 The eaidiag Lihi.
8:15 News.
8:80 Stars af Today.
S:45 Zyea of the World.
4:00 The Aidrica TaaUly.
4:30 Pot of Gold.
5:00 Cavalcade of America.
5:80 Fibber MoGaa and MoBy.
:00 Boa Hope.
4:10 Caclo Walter 'a Ootaomaa.
7:00 Prod Waring In Plaaanra TlaaS.
7:15 Edcewater-Beaek Oreheetra.
7:30 Johaay Preaenta.
S: Hotel Sherman Orekeatra.
8:80 Battle ef taa Saxes.
8 : 00 Armchair Crwises.
10:00 Newa Plaahea.
10;1S HoteJ Biltaaora Orcaaatra.
11:00 News.
11:15 Sir Prone la Drake Oreheetra.
xxx TxmaDAT use x
SO MaeieaJ Cloek. .
45 family Altar Hoar.
JO Dr. Brock.
15 Portland Breakfaat CTnV,
15 Between the Bookeada. '
30 Heme Inatttate.
45 Masters at Malady.
00 News.
15 Oeofraphieal TraTeloaj-aa.
80 It's a Woman 'a World.
45 CS Army Bead.
18
10
10
18
11
00 Orpaana af Divorce.
11
11
11
15 Amaada af Honeymoon HIS.
30 Jobs' Other Wile.
45 Jest Plain Bill.
0 US Department Arienltare.
15 Heme Polka JTrelie.
13
IS
13
13
45 Market SVporta.
00 The Qaiet Hoar.
00 Curbstone Qais.
15 Associated Press aws.
45 Frank Wataaan and Archie.
OO Siesta Boar.
IS Karoponn Kewa. '
30 Wasbisrtoa Colli a f.
IS Portland on keykev.
30 Ireeae Wicker.
45 Bad Barton.
OO Time and Tempo.
80 Kathleen Connelly Praoanta.
00 New Prontlara. American Life.
SO Easy Aces.
45 Mr. Soon. Tracer.
00 laformatioB Please.
0 The AldricA ramily.
00 Ktwa.'.
T
S
S
S
15 Ronthlaad Keetaaraat Orcaaatra.
30 Base ball.
15 Bainaow Kowdoaeawa Orekeetra.
10
10
11
11
11
45 Hotel AasBaaeaaor Orcaaetxa.
00 Thie Mevtnr World.
15 Portland Police Reports.
18 Paul Carson. Organist,
JCOIY TtrEEDAT 48 Xs.
8:00 Market Report.
:05 KOUi Kiock
7:15 H radii norm.
T:80 Boh Carred Ranortiaa,
7 :45 Conaamer Kewa.'.
8 :00 Kato Smith peals.
8:15 Whea a Girl lierriea.
8:80 Boaaaaeo of fielen Trent
8:45 One Gal Saaday.
B.OO The Goldbra. .
8:15 Life Can Be Boaatifot.
8:30 f5ht to HapprDOaa.
3:45 Mary Lee Taylor.
18:00 Bis 8ister.
18:15 A out Jenny. "1 -.
18:SO Pleteher Wiley, r
18:45 My Sam aad I.
11 :00 Society GirL L "
11:15 It Ha spaaed la Bollywood.
11:8 Ufa Bsiaa. - . i .
11 :45 Dealer in Dreams.
13:00 Pretty Kitty Kelly.
12:15 Mm aad Maraau
18:30 Hilltop Hoaaa .
1 3 :45 stepmother.
1:00 By SLatbiaen JTorria.
1:15 My Children. '
1:80 Siajin 'Baas. V
1 ;45 Scatter read Balneal
3:00 Toa Poetor Maleao.
3:1S Belpfal Harry. ( .
3:30 Joyce Jordan.
3:45 Tne World Todaf.
3:00 Hell Again. '
8:15 HiUton Honas. J '
S:8f Seeasd llaaband., . '
4 :00 Newspaper ef. tha Afr.
4:30 Cenrt of Muslag Heirs.
4 :55 Xewa. ' -- t ,
5:30 Dick Anraadt Oreheetra. "
:0t- Glea. Millar Orcaaatra. '.
:13 PaUic Affairs.
:45 Sports Haddle. "
S:55 Xewa, Boh Treat.
7:00 Amaa K' Andy.
7:15 litany Boaa. . t
7:30 Big .Town. V
8:00 We the People.
8r88 Professor On is.
8 :00 S nil i Tan Keriawa the Hewa.
8:30 PorUand Philharmenie Orchestra.
10:00 rive Star Final.
10:30 Toay Pastor Orcaaatra.
11:00 Bay Noble Orekeetra.
11:80 Manny Strand Orekeetra.
e e
XOAO TTJXSDAT 888 Xc.
8:00 Today'a Pre (rams.
8:08 The Hoaaaanakara Hoar.
8:08 Neifhbor Reynolds.
3:80 "Sally."
18:00 Weather Fereeaat.
10:15 Story Hone for Adalta.
11:00 Life of Theeaaa Edison.
13:00 Newa.
18:15 Farm Hoar.
1:15 Variety.
3:00 Ton May not Believe It.
8:15 DAB.
8:45 Monitor Viewa the News.
4:O0 Symphonic elf Hoar.
4:30 Storioa for Beys aad Girla.
5:00 On the Campasea.
5 : 45 Vespers.
3:00 VFW.
8:15 Newa.
8:30 rami Boar.
7:38 Camp Arberetnm.
7:45 Janior Porea CoaaclL
8:15 Meet Orefta'a Aathora.
8:80 Maaie af CeeekoeloTekia.
8:00 08C Bonnd Table.
8:30 OSC Cadet Bead.
3 :45 Anatomy.
"The C4iro Garter
Murders"
By VAN WtCK MASON
CHAPTER
Hasld Pasha meanwhile had
settled back in his chair and
was addressing Follonsbee. "To
learn that so brilliant. a member
of the British Intelligence as Ma
jor Kllgour is going to Cairo at
a a .a at ..- . u
ims time is most interesting
. "What do yoa mean, airf" the
young man demanded. I
A most Interesting situation
has arisen there, but since Doctor
Ladd has been away only a eon
pie of weeks, suppose we let him
ten as about the strangei
ders they've had there." I
mur
s. sc
even u as Americans, so
blase about crime," the scholar
began, 'these kill rags are aston
ishing. Egypt is a strange laad
and the unexpected always seems
to happen there.
"May we join yoa. Mrs. Laddf
North started, so Quietly had M.
Philllpides and his lovely com
panion crossed the lounge The
Id Greek bowed Courteously to
tne outer men ana nodded- to
Ben Yamen Hasld in familiar
fashion. "A little reunion, is lt
not? What apity we Egyptolo
gists see so little of each othert"
"We have even ' brought 'our
excuse zor Joining yoa.- Natlka
macg gave tna table a ravishinr
smite. , ics, news irom Cairo !
en arr : i - It
AnOthete vfrtlrn Af tta Amm.mAL.t
w ...... HCWi(ll
Mr. Armstrong has been found 1"
, ua.iv rasaa ssi Dull
npngnt. j -
yes,' Natlka went on excited.
ly. "Listening to the radio Just
n w we heard that ' the! bdHm
have found In the desert the dried
body of a German named Wolff."
"Eh?" Follonsbee'n volea
sounded a little strident. !
"An accident nerhsnaf arJ.
Ladd suggested nervously I
"Unfortanatelv. ant fn
ola Greek, "that waa impossible.
The victim had been shot through
tne montn ana he had been dead
for weeks.- , i
"But.- objected Lollta fn wide-
eyed uneasiness, "it may hare
been robbers. Dad waa ) saying
there has been no garter kllllnr
since last month." i
"Wolff was found Wearlnn on
of those . silly garters about his
arm. i . i
Another tirtcr mnMri tw
Ladd burst oat. "How ghastly! kI
don't see why the police can't fit
& stop to such outrages.,! J
. tlIow-ISIT "arie," cried Zaa
Ladd. "Why, Mr. Follonsbefe,
what is the matterf" 1 r
-1 hare a letter a WnifffU
Follonsbee said thickly, j I
.mat's a great uitT.' Dr. Taa
gave the younsr fellow s, avmna.
thetie pat on the arm. "Such an
end Is dreadful." ...- i
Bat scarcelr aalonlalilne. v..
Uka Black lnterrapted smoothly.
""What do roi mmt KT-.l.
jo erica casually.
. - a iw. w
WASHINGTON, May 0 First
blows ef the hliUkriea- hit ever se
cure American economy as hard
as our defenses. Our standards of
money, trices, trad and liTlog
were shaken as in e h as our
faith' ia oar anti-tank runs
which became pa shooters in the
face of the SO ton land battleships
which Hitler launched in France.
It because apparent lnunedl
artely to Mr. Roosevelt's econo.
mints that way tutd. for one ia
stance, svrcumnlnted nearly
f 1 9,000,000,000 of ico Id ap
proximately two-thirds of : the
f 28,113,000,000 known . world
storKn 4o rjacrt at world which
' saddemly nicht ttare ao ajjt
for it, A Gersuaai victory would ,
mean the flxiax of new world
, standards which used gold only
for braceleta, watches aad fill
las; teeth. 1st Its place aronad
the world won Id coane trade by
barter, -syathctlc rooary, polit
ical price-fixing. And ctctj if
Hitler lost, the destrnctlon he
had wrought among his adver
sarin precladed the poaalbillty
that they could retanr to their
col den way of lirlnx. I
The realization heran to1 dawn
on the fOTernment economists
that when Mr. RooseTelt said in
1933 he would try some other
means ot raising; prices in caae
his cold policy did not work, he
was really say in t that If jumping
out of the third story window
failed to achieve his purpose he
wonld go back . upstairs and try
something else.
Sorely also obsolescent In
case of a German victory, aad
shaken by the MltsJuiefe was
the Hall trade agreement pol
icy. Mr. Hull's economists hare
been forced to torn their minds
towards developing new meth
ods. Their thlakins; now is de
velopiasr toward the prospect
of a political Instead of an eco
nomic trade policy, especially
for Latin America. That is,
they see the steed for barter
which coasiders oar political
itecessttles for the security of
this nation more than price
and other matters. Aa export
. subsidy Is what they hare in
mind.
The transition seems to call
likewise for a reversal of domes
tie policies toward a preparedness
economy that may lead in the di
reetion of state capitalism. The
ast stores of armaments needed
for security has caused the new
dealers to start thinking first
about government regulation to
control supplies of raw materials
aad prices. A revised reincarna
tion of NRA has been talked.
Some of .Mr. RooseTelt s men
are even suggesting privately he
intends to use some of the $200,-
000,000 blank check from eon
gress to iasUtate some such co
operative organization Certainly
the government cannot permit
prices to get out of ' hand ' and
must prevent hoarding or a pecu
lation in needed materials.
Sheepish distrust of the stock
market for price levels lately
has caused the local economists
also to suspect minlmam regu
lations might be advisable also.
Those authorities with whom
hare talked are not thinking ot
this regulation in terms ot social
reform. All that now is a compar-
"Well." said she with a little
shrng of white shoulders,
'haven't business rivalries been
settled that way for many thou
sands of years? To live at all
is a risk, a struggle. Someone
always has to win and lose."
Almost everyone started at
such a comment from a perfectly
groomed young femme da raonde
Her tone had been as matter of
fact as if she 'were discussing
a new gown. Dr. Ladd appeared
snocked.
"Dear me. Miss Black, that is
scarcely a Christian point of
lew. I hope there aren't, many
others who accept an atrocious
murder so er philosophically."
I have lived much In the
Near east and I have observed
that neither men nor nations
have found any other way of set
tling' vital questions." earns the
untroubled reply. "Look at Syria
and at Palestine. Even now guns
and ammunition are pouring
across tneir borders."
"I wonder" Hasld Pasha lean
ed forward, aa amused smile on
his coppery features. "Have you
not neard, Miss Black, of the Brit-
isn navy ana or tne desert pa
trols? how could munitions reach
the tribesmen?" , f .
(To be continued) I T
Commerce Post
Robert EL IllncUey
Robert IL Hinckley, above,' is ex
pected to he named by President
Roosevelt for the post cf assist
ant secretary - of commerce.
Hinckley is tSirman Of the Civil I
Asmnantin At,i4t 1
atlvelr minor matter. The new
tendency ie- toward strength, not
socialism.
What has happened here is
that all established cliches of ect
nomic thought have suddenly
been challenged by a great of
fensive force. Such things as "de
fense of the dollar," . "parity
prices, and the like hare become
obvious absurdities.
The aeed for stew method
has Mused ao greet excitement
here. It is true two government
economists suffered nervous
breakdowns last week under
them. Bat there has been no
agitaUioa or dismay ia aay de
gree as extensive' as la the
touchy and poorly led New
York (Inanclal marts, j
It is appreciated here that even
if old ways are being destroyed,
so, are the old financial disasters
which came with such revolution
ary changes in the past. The gov
ernment is obllgsted and baa the
power now to cover this period of
transition. It cannot afford to let
things go. For Instance, extensive
armaments expenditures can have
whatever Inflationary ( force la
necessary, to offset attacks on
prices and loss of markets.
Not that any Well-settled defi
nite plan of action exists here.
The blow came too suddenly. The
government are nowhere near
agreed on details as to whst
should be done, but they are be
ginning to see what must be done.
The worst you could expect out
of this would be inflation which
is tbe opposite direction to the
one la which the stock msrket
went. And It could not possibly
be the same kind of .inflation
which corrupted pre-war Germany
because the government now has
the power of control over prices
and materials to press the brakes
as well as the accelerator.
It appears probable the eco
U e ra 1 c readjaat meats can be
worked oat faster aad more ef
fectively thaa our deficiencies
la military weapons.
(Diatribatad ky King restarts tyadi
cats, las. HopraJnctloa ia wkels er ia
part atrietly prohibited.)
Today's Garden (
By L1LL1E L. MADSKN
P. C. For! general delphinium
cultnre, see Sunday's articled May
19. To take care of blight or
black spot and root rot, one com
mercial grower advises using: 1
gram, mercuric chloride, 1 gram,
sodium nitrate; (H gallons of
water. Apply It with a sprinkler
close to the plant so that it gets
down to the roots. If your soli
is not healthy, this same grower
advises slaking 2 pounds of lime
in t gallons of water and add
4 pound tobacco dust. Dilute in
portions of 1 to 12 and pour on
to the ground around the plants.
A. R. Use a covering of sand
around the plants that the slugs
bother. A sprinkling of copper
sulphate In the neighborhood
where the slugs work will f de
stroy them. i
Mrs. J. F. Cinerarias had
best be treated as annuals. Even
florists treat them1 as such. Af
ter they have flowered, throw
them away. They, will not pay you
to keep. You can buy the seed
and plant in x August and with
eare yoa may have them la bloom
in winter. Plant them in a flat
as you would other seedlings.
Put about an eighth of an inch
covering of sharp sand over the
seeds. When they are large
enough to handle set them Into
small pots la soil consisting of
half leaf-mold and halt fine loam.
Shift them Into a large sized pot
as soon as they have made some
growth. Use three parts fibrous
loam, and one part decayed cow
manure. The plants may be
grown ia a shady location out of
doora until September whea . the
pots should be taken indoors.
R. O. Cole us root easily from
short cuttings at any time of the
year. If you are using them for
window cultnre, yoa will have
best success it1 yoa grow new
plants from cuttings each spring.
No. 183-124 . ( .
Synopsis at Aaanal Statemeat ot Tie
employers' Liability Aasarance Corpor
ation, limited, at Lend o a, Knfland. as
the tsirtytlrat day at !eeeraber, 138,
made to taa laearaace Ceaaaieaiener ot
taw State ot Oresoa. paranaas ta law:
CAPITAL,
Statutory depieit, 8300,000.00.
INCOME I
Ket prsalsas recti red during tas year,
114.474.828.71.
Interact, dWIdeada aad reats eoeaired
Income from other eoarceo reeelred
darinf taa year, 871.077.88. i
Total income, f 26.01 S.5.2J 81. ,
UlSHURbEelENTS ' I
I Vat tosaea paid daring ike year iaelad- !
las adjustment eapeneea. SlS.738.373. 18.
Commissions aad ealarloe paid daring
the year, 87.574.868 70.
Taxes, liceasee aad free paid daring
taa year, 81.1WS.331.7S.
Di rid en da paid n capital stock daring
tbe year, oaa.
Amoant o( all Uin eipenditaree, 83,
d4S.14S.7S. Total eapeaditOrea.- $35,84 1.731.84.
ADMITTED ASKT8 M
Valna of real oatalo earned (market
value). S4.634.288.82.
Valne ot bonds' awaed. (amortiird)
S26.4J5.0J9. 83.
Valee of etocks owned (market value).
fs.iis.iia.vu. ,
Cash la baafca aad hand. 84.168.
581.18. ; 1 l
Premlame la coslraa of collection writ
ten eiace September SO, 1038, 4,160.
360.17.
Interest aad rents doe aad arc road.
1 18S.88O.S0. "l;
Other assets (act). $1,098 66. 10.
ToUl admitted assets, $43,749,023.80.
UABILITICS
Greae elaiasa for loaaea Snnaid. 817.-
aii.4S4.oo. .
Amoant af unearned premiums as all
salataadieg risks, $d,921.056 67.
lis lor connmteetoa ans ' brokerace,
$780,697.41. i i V
All other HsMlitlee, 84.65. 20 SJL
Total liabilitiee. eaceat Statutory Io-
pcait, $38,749,923.80.
Statutory Deposit, $260,000.00. '
Surplus aver all liabilities. 89.800.-
ooe.oo. I
Surplua as rasarda Policy holders. $I0,
0OO.OO0.0O. i "
Total. 843. 740023 90.
, hUSINKSH IS CREfiOS
fOa THK VKAR
net premiuma recelTed dnrin the year.
Sua ir
Net loasea said dnrin r tLa rear. 821.
163.6.1., ,
Ket lossea laaanad durine the rear.
$31,148 6S.
Name ef Cononr. The KmnloTers' Ua
bllity Asanrtnco Corporation, Ltd.
aim of United Statee tieneral Mas
afr aad Attorney. award C Stone.
Statntorv resident, nrtnrnev for aerTica.
Lewie A Cartwricht, Portland.
Oa the basis t Dsrnbtr 81. 1938
Market qootationa for all bonds and
atocka owned, this rempaay'a tetal ad
mitted assets wonld be inrrraed U .
640.114 08 aad Voluntary KescrTS W
fd.442.018.C6.
Securities carried at 81,413.830.18 la
,k aUtenaeat are depoeiled aa ro-
awlred by Uw.