Image provided by: University of Oregon Libraries; Eugene, OR
About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 7, 1921)
Hrculation The Weather OREGON: Tonight and Tuesday fair, except ruin northwest por tion, fresh southerly winds. IjOCAL: Rntnfall .26; maximum 51; minimum 38, set 43; river 8.IJ feet and falling. OU r fval '"'of Salem 1900. 4J68; .County 190. "' e""117' . Bureau Of ClTCU- , nt Auu.i - ullon. Year No. 33 Salem, Oregon, Monday, February 7, 1921 Price Three Cent vestigation of State Irrigation Contracts Asked but ' at I rs Ul A fodn Annn Rasis v A dentil nlish- nn xiivvT and Prices un War Level Says nfrnller UVi or in many respects on a ..... ..nnnmically, than 11 Seen In The Crimelight (or years, Comptroller of ... n,..,, IVIK l,l.,c 111 obviously mvnauie i. nmP n BU1U MHJ " , . ..iaie h-ve returned t Dl i"- "in adltist nis piuma 10 hpfore the ultimate -m MMMive the benefit of ;a cost of living." iron's Npcara t..w.. shut i own and living charges, m- Inhor with CAD uiici'psi I'll a tne n Miiorf business. renditions abroad he- f d.i. i.ii.unnT to the oamimer oi stooi products orhich are still . is,.ii. tii-e"iti- IN coal tor wntcn :.a,itf hit; Mfi iH 111 mmaIi nfl fnnr nrir-i. .inil cer- (onimolilles ivim-n are til I . . I . I I V . 'II . 1 u I, norma nn. num., j , (k Amu l j ern- ended UN, the comptroller Km $157 national nflflrti'ri nm , . mi.. , it . made the rest record I ram .'nun in :i tout The penceiitrisi of the hiled banks to the raid- fcanki, he explained, was ont-inousamiths of one or sixteen tune-, better Slfrafe fnr the AntlM CT tne inauguration of the refources of till bank! iinnm aiaia .....i i.. i us a HI lien, flowing for the first "i toe nrincil .it from nationni bank! .v wv , 1 1 1 1 1 1 o 1 1 e i dwounts November 15 Hamilton, Ala., Feb. 7. A mistrial wan declared today in the ease of Sergeant Robert J. Lancaster, Alabama national guardsman, indicted in connec tion with the lynching of Wm. Baird. a miner, near Jasper, January 13. The Jury had been out 38 hours when the fore man reported an agreement impossible and the Jury was discharged. Manila, Feb. 7. Trail of seventy-seven Philippine con stabulary soldiers was started today cn charges of murder in connection with a riot here December 16 with the Manila police in which eleven ersons were killed. The defendants were convicted on charges of sedition in connection with the riots and sentenced to ten years imprisonment. Wrecked Ship Breaks Apart; Tugs Cast Off San Francisco, Feb. 7. The steam schooner Klamath. which was swept ashore early Saturday morning at Del Mar, 85 miles north of here, has broken in two and hna been abandoned, accordV ing to a wireless messe.ge received here today by the cotist guard serv ice from its steamer. Unalga. Tugs which had lines aboard have cant off. The passengers and crew were taken to Fort Bragg today and will :trrive in San Francisco 'tomorrow. Aside from slight cuts and bruis es sustained while being transfer red front the wreck to the rockv headland, they are in good condition. House Votes Federal Aid On Highways McArthur Bill Ap propriating Sum of $100,000,000 Passed by Wide Margin Washington, Feb. 7. A bill authorizing the appropriation of $1000,000,000 for road improve ments during the fiscal year 1922 was passed today by the house 27S to 58. The measure also would make available for an additional two years federal funds already allot ted to states for road work but not expended. Would Probe Strike Washington, Feb. 7. A resolu tion proposing congresional Inves tigation of the West Virginia coal strike situation, including armed violence in the niinlmr camoi. was introduced todiiy by Senator John son., republican, California. It was referred to the senate labor com mittee without discussion. Wlnslow Bill Killed Washington, Feb. 7. The Wins- low bill authorizing partial pay ments to railroads under the guar anty section of the transportation aat failed of passage today in. the house. The vote was 200 to 111. A two thirds vote was required as the bill was taken up under a suspension of the rules. Accusations Charge Monopoly Enjoyed by California Bank In Purchase of Bonds and nictation of Con tracts on Cost Plus Plan Unrated 18,7fi4. 'Cti loans to fn Worn per ece.t; loans during concerns approx MMM.tM or 21 pPl. Mrhantu, merrnnt iio I trade rhAlMai "000.000 or It ,,' , p, fned t(l boml . " Healers Investment y. KHMed t,.e. i nr.r. ,. f -amour fcl'-t and tiou .... wild,. ,ne . mtn. including ,cc- 'eachers. rln.nii.. tkrgytren KmountCd '0,000. Mlacellantcua m anoiir a nn.i .inn rthe,,ri " ;,n'"8 of the m tne while lor lepoHl.a. "es siilui in the eitv of pa r,i I., , . Lb. ? I(r cent. "0"al bank. - rem "'ifleapHiu "'trest on Kami,, bank. Aowpi! Bomb Ruins Building In Mexico City Mexico City. Kef, 7. Police au thorities and government seeret service agents were engaged tossy in collecting evidence which might lead to the arre.t of men wl.-" bombed the residence of the arch bishop of Mexico and the building occupied by Juergens and company here yesterday. I'our men are un der arrest hut it is known several others were implicated. The residence of the archlbshop was badly damaged. The Juergens building was virtually destroyed by the explosion of the infernal ma chine placed in front of it. Its en tire street frontage was wreckej and windows of houses across the street were blown in. The upper story of the factory, which is lacat ed in the residence section, was oc cupied by the families of the own ers but no one was injured. Information gathered by the po lice would four men did the actual work of setting off both bombs. A small enr was seen to approach the arch episoopal residence shortly before 4 o'clock yesterday. It stopped moment while one man alighted and then started off at a rapid pnee being well down the street when the explosion occurred. What ap peared to be the same car. or one of similar make, stopped in front of the Juergens factory an hour later, and then hurried away. Four men were said tb have ridden in each car. Smaller Navies Held Necessary To Save World Washington. Feb. 7. An inter national agreement for limitation of armaments is absolutely essent ial to the avoidance of bankruptcy by some of the more important na tions of the world with its attend ant measureless confusion and dis tress, Representative Mondell of Wyoming, republican house leader, declared today before the house naval committee. If an agreement is not reached in the near future, Mr. Mondell said, the fault will be that of America, as in former days, the fault was that of Germany. "11 is our duty to lead the way," lie added, "because strangely enough we are the only great na tion that since the world war has officially taken a position favorable to the increase rather than the de crease of armaments and warlike expenditures and the one nation in which, I fear, there is a really dan gerous sentiment in favor of in creases rather than decreases of military establishments; a senti ment nevertheless deeply planted, shrewdly calculating and very per sistent." "We have not followed Secretary Daniels' ambitious program." Rep- "tpntntlve Mmdell said, "we shall seem to indicate that ,10t follow it." Couple Married Forty-Two Years Seeking Divorce Claiming non-support and de sertion. Mrs. Geanna Thomas has filed a divorce complaint against her husband, W. K. Thomas of Sa lem. The couple were married at Stay ton In 187P. and have lived there and near Salem for a number of His wife claims that Thomas Elimination of State Engineer from Land Board Sought by Re form Backers Introduction of the Gallagher resolution calling for an investiga tion of irrigation district contracts and the state engineer's office, coupled with house bills 178-180, by the committee on irrigation eliminates the state engineer as sec retary of the state land board and concentrates the responsibility of i uwet upon the governor and state land board and provides for the appointment of a "techni eallly qualified hydraulic engineer" as state engineer, has begun what promises to be one of the big fights of the session. It is the avowed intention of the ta'l-ijatJon district representatives to effect a reform in IrrintiM mat. tern without ih any way interfer ing with the irrigation and drain age laws of the state. It is alleged that one California bank has a mo nopoly of the bonds, secured below par and dictates terms of contracts upon ciit plus basis, including let tlng of contracts, rentals of equip ment. Importation of Mexican labor and other details, as a result of which the districts are unduly mulcted, the cost of construction doubled, and only a fraction of the bond money goes into construction. The matter will be given a hearing Tuesday evening before the com mittee. Office Is Overloaded. At present, it is claimed, the of fice of the state engineer is over loaded, so much work piled upon it, with its innumerable surveys and estimates of cost, with the various duties of control of water, certifi cation of bonds, adjudication of streams, assistance to the state land board, the state board of health, and the federal government, that it is unable to function. It is claimed that on account of the great bur dens which are now placed upon the state engineer that it has been impossible for the engineer to give tne required, attention to all busi ness details of the projects, and that which is necessary for the pro tection of the farmers on the pro jects, and also the purchasers of Ir rigation district bonds. As an example of contracts ap proved by the state engineer it is cited by the irrigation representa tives that on one of the bigest irri gation projects which has been de Bill Asks Investigation Representative Gallagher of Malheur today introduced the fol lowing House Resolution: WHEREAS it appears that about sixty irrigation districts, with a total irrigable area of 1.200,000 acres, have been organized under the laws of the state of Oregon, a very small percentage of which have been placed under irrigation through the operation of said laws, and WHEREAS, about $4,230,000 have already been spent in con struction, and about $70,000,000 will be required to complete all projects, and WHEREAS, the state has certified as to the security behind $5,400,000 of bonds already Issued and guaranteed the Interest upen bonds issued to the extent of $3,842,500, and WHEREAS, about $10,000,000 additional bonds already voted have been, or soon will be, submitted to the state securities com mission for certification and interest guarantee, and WHEREAS, the laws of this state provide that all such bonds shall be sold for not less than 90 cents on the dollar, and WHEREAS, through the connivance of contractors and bond brokers and the making of coat-plus contracts these contractors and brokers have been permitted to defeat the law and make un warranted profits, thus throwing unfair burdens upon the land owners within said district, and WHEREAS, certain of these districts, with the approval of the state engineer, have made cost-plus contracts, which caused them to pay the expense of transporting Mexican laborers from the border to compete with the Oregon labor paying taxes in this state, and WHEREAS, if the credit of this state and the interests of the Investing public be protected, it is necessary that every safeguard be thrown around the organization of these districts and thuir projects be carefully investigated, and every precaution taken to see that they are feasible, the water supply sufficient, and the lands covered by the proposed lien offer ample security for any bonda issued and sold to the public, upon the strength of the cer tificate of the State Securities Commission; EE IT RESOLVED BY THE HOUSE that the Irrigation Com mittee of the House be authorized to make a thorough investiga tion of all past transactions covering the organization of Irrigation districts under the laws of this state, all contracts covering the construction of works, and the sale of bonds, and any and all matters which will throw light upon existing conditions, and to this end may subpoena, swear and examine witnesses, and call upon any state official to appear before the committee and provide such books and records as may be necessary for the enlightenment of the committee, and BE IT FURTHER RESOLVED that the committee report its findings to the House at this session, and, BE IT FURTHER RESOLVED that any expense incurred In making this Investiga tion be paid at the time and in the manner as other legislation ex penses, by warrant of the Secretary State, upon vouchers approved by the chairman cf the committee. Radical act ivitv has been Increas-1 j,as chosen to live separately for such necessary lumber as required for camps and buildings, transpor tation for provisions, etc. The con tractor only furnished the provis ions and supplies for oneratimr the veiopeu in the state, a contract was I boarding house, and the ranges, approved by the state engineer cooking utensils and tableware. For which provided a profit to the con- this he was permlted to deduct tractor of 145 per cent of cost, fig- from the workman's pay $1 per day ured on the cost-plus basis. The contractor was allowed. In addition to the ordinary expenses which go to make up the cost, the following: Labor for operation of boarding houses, camp superintendent, fuel and water for boarding houses. and anv profits arising out of this transaction went to him. Fund-lied Motor Par-. The distiict had to furnish three motor vehicles for use on the work, m with the fuel and oil paid for by the district, provided free camp grounds, water for stock and do mestic purposes. This 15 per cent profit did not only apply on actual expenses but on the fat outfit rent als also. The contract provided that the contractor should furnish three team camps of 100 head each, and that such stock should be shfpped to and from the work in camps of 100 head each. These nrovlsions resulted in the shipping in of 300 head of California stock, mostly mules, and at a time when onlv 10 Costs of Constructing Doubled and Pro jects Get Little of Bond Money per cent of the livestock of Oregon was engaged in work. The freight and. moving on and off expenses for all ofthis stock, together with all handling expenses, in addition to the rentals, was paid by the district from the time originally shipped until the work was completed and the stock and equipment returned, in addition to this, the district paid the cost of transportaion of Mexi can labor shipped from he border. Not satisfied with these profits, among other things, the contract discriminated against the local merchants and permitted the con tractor to operate a company store. The contract specifically provided that the contractor should keep all such profits. This contract, which was approved by the state engineer was so one-sided In behalf of the California contractors, who secured the work, that it left practically all matters of business decision and authority to act vested in the hands of the contractor. When the pro ject was completed, the original estimated cost figured at $922,000 had grown to the amount of certi fied bonds now uostandlng, namely $l,t 00,000. This project is only one of several which have been handled In a like manner, and after th'J written approval of the state -engineer. Sold for Ix'-s Thnii Pur. It Is common Information that irrigation bonds are sold by the districts nt a price of about 90, al thought interest Is guaranteed by the state, When school bonds and other municipal KeeUritles, seoured by the same property as the ds. trlct bonds, ore almost lnvariablv sold for iirices about par, although they sometimes yield a lower rate of interest. Manipulate Ponlructs. Under the laws of this state, Ir rigation and drainage disti l it bonds cannot be sold for less than 90, but bond brokers meet this sit uation and secure further discount through manipulations in contracts. which can only be out over by the approval of the state engineer. When a hearing before the com mittee on irrigation Is held, it is un derstood that the committee will call upon the state engineer's office to provide copies of all contracts between construction compjnies and bond brokers rind the districts In order .that it may be fully deter mined Just what abuses, if any have been permitted, and better en able the legislature to throw every safeguard around the future tram actions of the office. Remember your eastern friends wl'h a box of Oregon prunes. Teacher Beats Lad; Paralysis Is Developing Los Angeles, Cal., Feb. Lee, 14. student at a f. Era ll li Ing in Mexico City recently and newspapers here sav that two com munist congresses will fie held this month, ore in Mexico City and the other in Tnmpico. When the reporter gets an In he last three years and that In 191S was gone the whole year. Dur grammar school in Las Vegas, Nev., was re ported In a serious condition at a hospital here today as the result, it was charged by his mother, Mrs. Dora Lee instructor in the Las Vegas high school, of "a severe beating administered by a man teacher for a trivial misdeamor." The boy was brought here last Wednesday, when a slow paralysis rsis slid to have developed from the waistline downward. Three " dional nast fio.,i It u, . " " f'w Ti.iv;, nil i oiiii 'HfWes tr. -.. ttH nan ' r- ntk .. , . . i . - . -i . . 4 -o.o .inn - .,n A tfii-i- ... ,:v, , , ho Ml. , i 1, , ........ ctriii-L' lier H nil Horn quotes literally. Dialect i9aj,i that he had made a misrihe hi There are a number ot taC the rest of the time he has been Los Angeles surgeons agreed there at home occasionally, but reruseo to eive her any material assistance. She claims also that she has been sick, and that on one of his visits vould seem out of place in an In-1 marry her. terview I children, all grow n. was a ll- nic-ri nae oi un- ipum. cord. An operation was performed Saturday, since wherl mcninghitis is said :o have developed. I ir S A. Lewis said today recov-,-ry wis doubtful and that if the boy Should recover, he probably never would walk again. Bulletins Washington, Feb. 7. Attorneys for Armour & Company and Swift & Company today filed with the district supreme court a new plan for selling British stockyard interests. Previous plans proposing the sale of the yards to F. H. Prince & Company of Boston had been disapproved by the court. Medford, Ore., Feb. 7. The handsome residence of J. S. Vilas, six miles northeast of Medford was totally destroyed by fire early this morning at a loss of $35,000, only partly covered by insurance. No one was injured. This is the second large ranch fire in the last six weeks, the $30,000 home of .VJa.ior L. H. French burned down Christmas eve. San Francisco, Feb. 7. A district court condemnation ( appraisal of $90,000 for 2,500 acres of land of The Warm Spring irrigation district of Oregon for a reservoir site, was upheld by the United States court of appeals today. Redding, Cal., Feb. 7. After two short periods of activity yesterday and early this morning, Lassen peak, in northeast ern California, at 10 o'clock this morning had resumed its eruption and the volume of smoke and steam was increasing I'hila- !!'-t per : boston, 'i j.er n ; Ua; It ceti "as 1'if. 1 8as i . - rirtnciseo 0- Coir. . rVfCin- R' "i''',ts P oast H- ri- . thirty k ' "Ts book- of lias, per per per IH..:.. . -- ea of '" Mat r'v.- IOC on:r. n- anl , marie laries nubi. ST e':ntn ' 10 'xcess lb.; su rional mlnal ' and - run- 1 iryfevj table le ex- itlcnal OSf- , of 1,unal I.", '-'T 1 rear. Tve w!ar. pre-iii i .nt the h in to rn i h !. Ir-H,-, . Of ZWrf nk " nanri ' offieur i, paid House Members Furnish v-'.--.-?m. cap Material For Five-reel Thriller Negro and White Woman Jailed On Statutory Charge A negro bootblack employed at the Salem shoe shining parlors, 315 Slate street, who gave his name ns D, H- BrOW a, and a white wom an about 21 years of age who says here name is Irene Ilradley, of H45'a First street, Portland, were arreated yesterday by Chief of Po lice .Moffitt in Crown's room at 185 South Commercial street. Both are held in the city Jail on statutory charges, No date has yet been set tor their hssflngs Whether they will be tried In the police court or Justice court, au thorities hsve not yet decided. The trial ol Ilermnn Hayes, a negro employed In the same shop with Drown, which was to have have been held today In the Justice court, was postponed bv Judge I'nruh until Wednesday Hayes is charged with assault and battery on a Capital Journal newsboy. When arraigned last week he pleaded not guilty and demanded a Jury trial. Senate Calls Highway BiD BackByVote Necessary Majority to Reconsider Measure Not Secured In Up per House, However The senate this morning by Sk vote of 18 to 11 voted to recall: from the house senate bill 35, by Norblad and Hnll, making available $2,500,000 for the Roosevelt coast highway. The action was prelim inary to the ultimate slaughter or the bill which has met with violent opposition from the state highway convmisisbn. What action this ex ecution will take Is siill prob lematic. On the face of the vote to. recall the measure, reconsideration, of the senate's vote on the bill, which requires a two-third's vote, hardly appears practical. Speaking in defense of the bill Senators Hall and Norblad resented insinuations of "trade" which had been intimated in connection with the success of the bill on Ita first appearance in the upper house and charted R. A. Booth, chairman ot the state highway commission, with "the worst kind of lobbying" in un. attempt to defeat the coast highr way program. Booth, It was charged by Nor blad, had promised to Lincoln coja ty road funds aggregating SLIM, 000 if the coast highway bill mmt with defeat. Lane county, he charged, had also been promised certain local road Improvement by the highway commission if it would get out from under the Roosevelt highway. RlHing to a point of personal privilege Senator flail took excep tion to charger, of "trade" wnich. had been made In connection wftni the cpast highway program and ea. pvessed his resentment of the por tion tnken by the Highway comaiis ion in opposition to the proposed coast road. He denied any desire to Interfere with the state highway program but declared tha if his bill w killed he would use every meanj within his power to prevent the .tt version of the $2,500,000 anthori,! for expenditure on the coast road by vole of the people, to the gen eral fund of the highway depart ment. This money, he insisted, hrvt been voted for use on the propoMd Roosevelt highway, and could not be used in other manner. The about face of the seriate on the coast highway program wa accompanied by many explanation on the pari of the Individual sena tors who hhve found occasion to chsnge their mind since the bill was put through the upper house last week. Senator Jones of Lane county prefaced his vote for the recall with on expression of confidence in t'oinniissioner 1 loot h. Senator Bberhard declared th"t be was still open to ennviction an'l only wanted such additional facts as inlnht be advanced at a furthor consideration of the bill. Senator Laehmund insisted that he had been persuaded to vote for the bill under a misapprehension of the facts while Senator ThorrUU admitted that he had gotten Into the wrong camp In lining up with the coast highway program and: expressed his willlngnem Co st ! crow along with the res! of his err ing colleagues. With eleven of the thirty sena tors still loyal to the Roosevelt highway tuiinram the cent mow promises to devf-lop Into a real pa r llamentary entanglement. V7hll- some of tin senators insist upon their right to table tin1 bill in the event of their failure to reconald-i-r the move others contend that such a course is not open except whan a hill Is up far consideration. i allure to reeonaider h vote of itt. vote of the senate will auto n itleilly send Un- bill back to the house It is contended. DIU- mmfm POT flHR HON Mosfono CHAMPION HtAV WtlOH r BOOSTER FOR NOrVTH POflTLAND ran uyo uj wy Ji. r& T Ty r.fjftn fifty Senate Overrides Wilson's Veto Washington. Feb. 7. The houso n solution directing that army en listments be stopped until the ar my was reduced to 175,000 men became a law late today over Pres ident Wilson's veto. The senate placed the resolution on the statue books by voting to override the veto. The house voted overwhelm ingly to overturn the veto last Bat uday. The senate vote was (7 to L Senator Kirby. 'democrat, Arkan sas, alone voted to sustain the veto. Girl Enters On Sixteenth Day of Sleep Siege V. nire. mer. IS. Cal . Fi high m -Y entered the i -o K- of l'-ping : ?. Ethel Ham d stud-nc, to--enth lay of s Hr phv Settlement Of Irish Problem Again Sought Dublin. Feb. 7. Interesting ru mors are circulating In Dublin to dn regarding fresh efforts the gov . i anient Is reported to be making to effect a settlement with soath rra Ireland The belief is gruwnisc that an important development n. n eaass to light when parlhvr ment reconvenes. "According to one report the gov ernment Is trying to bring the Ul ter leaders Into line wtih a well formulated scheme to persuade the south to accept the partition pro vided for in the home rub- act ami work under it. This version has ir that the prihe to he offered for ac ceptance Is a grant of full flan' and This would te eouphak, ,ar as the ruth Is concerned, wit an after lo release the political prisoners ami giant amnesty tt ,tur irieni'M-r-i of the r:vh republi can army, aad area iron "oa Uba run " Negotiations 10 thin end are no-ar l,roeeelin5. it is said. Iretween Mr. Llovd-Ceoree prime t er. nam. Ulster leader. of which depend I ... ' - "-ite of icUn Mid there was no sign of re whether the announced. n will toe fatal f hf ankS are turning conncionsc
