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