OREGON SIAl'E LIBRAS V
WW 23
There Is no substitute tor .
CIRCULATION
Dally average for October 6122.
Member Audit Bureau of Circulation.
Member Associated Press Full leased
wire nervice. "
THE WEATHER
OREGON: Tonight and Wednesday
rain west, cloud east portion; moder
ate southeasterly galea.
Local: Rainfall, none; max. 49; win.
31; part cloudy; river 1.5 ft.
"qrTYFOURTH YEAR NO. 277
SALEM, OREGON, TUESDAY, NOVEMBER
PRICE TWO CENTS
ON TRAINS AND NEWS
BTANDS FIVE CENTS
n
1 V,
21, 1922 :
IJ L L i.ij L, ill
S I j Li - j, , I I j L-J V J m--mr t-r,. ,n,,J
:
KLANSMEN OF
CHICAGO FIND
CREED COSTLY
Judge Bars Kluxers From
Jury Duty And Banks
Feel Weight of Oppos
ition Sentiment. .
Chicago, Nov. 21. To be
member of the Ku Klux Klau In
Illinois, and particularly In Chi
cago, these days is to invite social
ostracism and business disaster.
The fact is slowly but surely be-
lag driven into the minds of the
60,000 or so members of the secret
organization in and around this
city.
The opposition to the Ku Klux
is well organized, persistent and
unrelenting. In a city in which
the foreign born predominates, in
which the negro population alone
ia in excess ot 110,000, in wnich
the members of the Roman Cath
olic church numbers approximate
ly 1,200,000 and the Jews 125,-
000 or more, it is not surprising
that there is deep-rooted dislike
of the Ku Klux Klan and the prin
ciples for which it stands. The
foreign-born, the Catholic, the
Jew and the negro constitute a
powerful foe to the Ku Klux Klan
and are a unit in opposition to It.
Judge Bars Kluxers.
As a consequence Chicago is
witnessing some curious happen
ings. One judge refuses to per
mit members of the klan to serve
as jurors in his court,' business
men known to be members of the
organization are being boycotted,
and one of the big banks is losing
business because some of its di
rectors and officials are suspected
01 affiliation with the klan.
So powerful is the vvave of re
lentment that within the last few
weeks the president of another
hank, one of Chicago's larger fi
nancial institutions, was forced
to resign when his name was list
ed as a member of the klan by a
periodical which is the official
organ of the anti-klan organiza
tion. This publication bears the
name of Tolerance, and is the of-
(Continued on Page Ten.)
Residents of Scio want a paved
road over the six miles between
Green's bridge . and Scio, and to
"ture the endorsement of the
fealem Chamber of Commerce, sev-
"ai Prominent citizens of that
community met with the Chamber
, Commerce directors last ven
tag.
-from Jefferson to . Green's
nlge l3 three miles all In Marion
county. This road has been grad
with a macadam base and will
, Probably included In the pav
as next summer by the county
court.
'ter the river la crossed, the
"M to Scio la In T Inn rntintl
n"I it is this six miles that the
'o tolks would like to have
:'wa by the state highway
""uiUlBBlOn.
h A ear'y date will be appointed
y the Chamber of Commerce of
'em to cooperate with the Scio
"Presentatives in their appear-
,C8 0,re the commission, urg
8 that the six miles b paved by
the state.
STUDENTS
S TO STAGE
PLAY AT BOYS SCHOOL
ftCCnrHanA. 1.1- . 1 .,
In
G . wii.n me policy
of i Soclofsky as secretary
to Marion county Y. M. C. A.,
om 0Tl(1 an entertainment of
C ,for "e boys of the
end t lninK school every aec-
numb of w-
Sfcmh. l,niT'rslty students,
d.w of th6 Public speaking
tio, . ' W1U K l Institu-
tonight and giv. abort
Si ASKS AID
SECURING
AD
Salem Perfects Attack
In Air; Dope Minus On
Mix With
Vanderbilt to
Get Fortune Friday
Portsmouth, R. I., Nov. 21.
William H. Vanderbilt on his
21st birthday, Friday, will
come into possession of the for
tune left him by his father, Al
fred G. Vanderbilt, wfio lost his
life in the sinking of the Lusl
tania. g:
5
Holders of Small
Accounts in jueiunn,
Banks Are Preferred
Creditors.
Savings depositors are prefer
red creditors in the distribution
of the savings assets of an insol
vent state bank and share ratably
with commercial depositors in the
distribution of all other assets
and resources of the bank.
Thus reiterating its previously
expressed opinion upon the Btatus
of a depositor in the savings de
partment of a state bank in Ore
gon, the supreme court this morn
ing, in. an opinion written by Jus
tice McCourt denies the petition
for a rehearing of the, appeals
filed by C. R. Upham, Mary Steel
hammer and Grace A. Doxsie, ren
resenting commercial creditors in
the defunct bank, against Frank
C. Bramwell, as superintendent or
banks.
Savings Separate .
The Oregon law covering the
regulation of state banks, the
opinion points out "enjoins upon
a bank maintaining a savings de
partment the duty to keep all sav
ings deposits received by it and
all securities in which the same
are invested, separate and apart
from all other moneys and funds
of the bank. The investment cf
savines deposits is expressly re
stricted to specifically described
securites of recognized financial
soundness and readily convert
ible into money.
"The statute further imposes
the strict obligation to . hold all
such investments, funds and as
sets solely for the repayment of
savings depositors and expressly
prohibits the use of the same to
pay any other obligation or lla
bility of the bank, until after the
payment in full of all savings de
positors."
Offsets Illegal
"Diversion of savings assets to
a prohibited use or purpose does
not result where a savings depos
it is offset by a debt to the sav
ings department or to the commer
cial department or where a com
mercial deposit is offset by a debt
to the commercial department and
in those cases the right of set-off
is not affected by the statute,'
Justice McCourt points out, al
though holding that a depositor
in the commercial department of
the bank may not set oft his de
posit in that department against
his debt to the savings depart-
rment.
PETITION FOB STATION
AGENT IS REFUSED
The petition of the citizens of
Liberal, Clackamas county, for
the maintenance of an agent by
the Southern Pacific company at
that point is denied in an order
issued by the public service com
mission today. The order of the
commission holds that the busi
ness of the railroad at Liberal
does not justify the expense inci
dent to the employment of . an
agent.
Other orders issued by the com
mission today provide for the
construction of two new grade
crossings in Benton county and
the elimination of four xisting
crossings.
SAVINGS AP
RATED Ff
Eugene High
Although there is some "paper"
dope available, the football team
of Eugene high school arch-rival
of the Salem high school is more
or less of an unknown quantity
and local dopesters are reluctant
to step forward and annbunce Just
what ' will happen when the two
elevens clash here next Saturday
for the first time in two years.
Of course, scores may be given
the once-over, but in this case the
result isn't very satisfactory. It
is known that Corvallis high
school put Eugene to rout with an
18 to 0 score while Corvallis de
'eated Salem only 3 to 0. How
0ar, it will be recalled that the
igene eleven made some costly
g moles while in whispering dis
a ,nce of the Corvallis goal line.
? he game was not so one-sided as
he score would indicate.
. ! Salem's line is fairly big and
'ather fast but so is Eugene's.
Reuorts from the universitv citv
indicate that the preppers are in
.'good condition and are being
J whipped into shape. Likewise
Coach "Scrub" Huntington, his
eye alert for the rough edges, Is
watching his charges perform
each evening and their condition
wiU be of the best.
Ringle, end, who was carried
from the field in the game with
Corvallis, is again in shape and
will be started in the game with
Eugene. Lllligren, half, who has
suffered some from injuries dur
ing the season, is also entirely re
covered.
Coach. Is Silent.
Today Coach Huntington would
offer no- predictions "concerning
the Eugene mix-up, but he admit
ted that the local eleven is in bet
ter shape than it has been at any
time during the season. Against
Eugene, Adolph will be shifted to
a wing berth but will be pulled
back to do the kicking. In prac
tice Adolph has been getting bis
kicks off, for 50 and 60 yards.
Ringle will be used on the oth
er end. Jones and Morman will
be at the tackle positions, Hamil
ton, Coffee and Osman are avail
able as guards, and Harris will
be used as center. In the hacK
field will be Patterson, full; Lllli
gren and Post, halves, and Brown
quarter.
Paper Dope Favor Salem.
During the past week Hunting
ton has made an effort to perfect
his over-head work and it iB pos
sible that Salem's aerial attack
will be greatly Improved by the
time it meets up with its ancient
enemy. ,
With Eugene-Salem games al
ways difficult to dope, the stuff
available on paper would indicate
a victory for the locals.
HEED $250 FOR
Only $250.00 will be asked of
merchants and banks of the city
to finance the annual Marion
county corn shew to be h'eld In
Salem December 14, 15 and 16.
This figure was placed as the
necessary amount, at a meeting
held last evening by the board of
directors of the. chamber of com
merce. And as the corn show is
regarded as a great advertise
ment for the county, it was
thought that no difficulty should
be experienced in raising the
$250.00 through small contribu
tions by every merchant In the
city. The money to tn raised is
to be used in necessary expenses
and in the offering 01 casn
premiums.
The exhibit win oe piacea in
rooms over the Salem Hardware
company, on commercial vri.
The committee appointed to make
all plans i for the show and to
secure money, consists oi ueoriso
Griffith, Charles R. Archerd,
Dan J. Fry, Z. J. Riggs and
p. W. GiBer.
Washington, Nov. . 21. The
fifth shipment of American Red
Cross supplies for war refugees
from Asia Minor will leave for
Greece on December 4, it was an
nounced today and will comprise
1000 ton of flour, the first sec
tion of a 2500-ton purchase destined-for
Greece.
N SHOW HERE
Z3
HEARING ON
MERGER
PLEA OPENS
Espee Attorney Charges
Body Seeking Inter
vention Is Controlled
By Union Pacific, ,
Washington, Nov. 21. Half a
dozen states and scores of com
munities and traffic associations
In Pacific coast and Rocky moun
tain territory took a hand today
in proceedings before the Inter
state commerce ' commission by
which the Southern Pacific rail
road hopes to retain control of the
Central Pacific despite the disso
lution order of the supreme court.
Fred H. Wood, counsel for the
Southern Pacific, made no objec
tion to the swarm of intervention
requests until the California Pro
ducers & Shippers association was
announced.
Charges Trickery.
"I'll not object at this point,"
he declared, "but in point of fact
that so-called association is noth
ing more than the Union Pacific
railroad, operating under an alias,
and that alias is resorted to for
the UBual purpose that people use
aliases. At the proper time I'll
move to strike its petition and
participation from this record."
"We'll meet the gentleman s
argument when he does it," re
plied E. F. Tread well, represent
ing the association, .
Officials of Colorado, Idaho,
Utah, Arizona, California and
Wyaming petitioned the commis
sion for authority to intervene
when Commissioner Meyer opened
the hearing, as did representatives
of nearly all the coast cities.
Arrangement Explained.
L. J. Spencer, director of traf
fic for- the Southern Pacific, ex
plained in detail the financial and
lease arrangement vhich have re
sulted in the close interlocking of
the two corporations since 1885.
By joint issues ot stocks and
bonds, exchange of securities and
absolutely unified operation, he
said a situation had been created
in which dissolution under the
supreme court order would give
rise to inumerous perplexing and
difficult problems.
Analyzing traffic statistics, Mr.
Spencer said that withdrawal of
Southern Pacific ship for the Cen
tral Pacific route would divert
more than a half million tons of
transcontinental freight per year
from the Ogden-Utah route to the
south.
Competition Denied.
Since the opening of the Pana
ma canal, he continued, the South
ern Pacific has not been a com
petitor with the Central Pacific'
northern transcontinental line be
cause the freight had been divert
ed to the water route. He insist
ed that the supreme court in find
ing the Southern Pacific and Cen
tral Pacific had combined two
competing transcontinental lines
and thus reduced competition to
the point that made the merger
unlawfuVhad been dealing large
ly with conditions which were no
longer existant. In general, he
declared, the two lines have been
complementary in the transporta
tion service and not competitive.
Following a brief appeal made
by Harry Levy, president of the
Associated Charities of the city,
at the luncheon of the Klwanls
club today at their weekly lunch
eon, just before the main speech
by Aon. J. K. Churchill, superin
tendent of' the Oregon schools, a
total of approximately $335 was
subscribed without personal solici
tation, by members of the club.
"Top many In giving money act
like the money was being given to
the officers of the organization
and not to help the needy," Mr.
Levy said.
KWAMS CLUB
AIDS CHIT E
PORTLAND
MINISTER
EXONERATED
Supreme Court Holds Dr.
Morrison Not Guilty
Of Fraud In Selling
Land For School.
Dr. A. A. Morrison, prominent
Portland Episcopal minister, was
guilty ot neither wrong doing nor
fraud in his connection with the
transaction which resulted in the
acquisition of 100 acres of the old
"Charles Ladd farm" in Yamhill
county "by the board of school
trustees of the Episcopal church
in 1.908, for use in the establish
ment ot a school tor boys.
Such is the holding of the su
preme court in an opinion written
by Justice McBride and handed
down this morning affirming ne
decree of Judge Gatens of the
Multnomah county circuit court
which had dismissed the case
brought by the board of trustees
against Morrison to compel restor
ation ot the $25,000 to the trust
fund from which the purchase was
made with a view to establishing
an Episcopalian school tor boys in
Oregon. .
, Sold Land for School.
Dr, Morrison, together, with E
M, Morgan and W. B. Streeter
held an option on the purchase of
(Continued on Page Seven.)
PORTLAND MUST
suit brought in the
Marjon county circuit court by
the City of Portland against Sam
A. Kozer, secretary of state, and
the f Associated OT company,
wherein the city of Portland al
leges, that it should not be com
pelled to pay the one cent gasoline-
tax on vehicles used by the
cityj Judge George G. Bingham
has .entered an order dismissing
the suit and taxing costs against
the plaintiff.,
It .Is understood that the City
of Portland will soon appeal from
the court's decision to the su
preme court of the state.
In the suit, the City of Port
land asked that the secretary of
fltatej be enjoined and restrained
from-.collectlng the one cent gaso
line tax, alleging that the city
should be obliged to pay as the
gasoltne purchased was used for
public -purposes.
The statute of 1919 reads:
"To provide a license tax on
gasoline, distillate, liberty fuel
and other volatile and lnflam
mable liquids produced or com
pounded for the purpose of oper
ating ; or propelling motor
vehicles."
SUIT TO BANISH
Tnnka. Kan.. Nov. 21. Legal
proceedings which may make it
unlawful for any person m Kan
sas to become a member of the
Ku Klux Klan are forecast today
in th( announcement last night
by Gdvernor H. 3. Allen that be
had 'been assured by the state at
torney, general's office that ous
ter proceedings against the klan
would be filed in the state su
preme" court. It is thought at the
state, house that the suit prob-
mji would be begun some time
today 1
Th suit aealnst the klan will
be brought on the ground that thi
organization is a Georgia corpo-
atlnn and If not registered to ao
business in Kansas.
PAY GAS TAX ON
JCITYMACHINES
In the
KLAN PENDING
Newberry Formally
; Resigns from Senate
Washington, Nov. 21. Res
ignation from the senate ot
Senator Truman H. Newberry
of Michigan, the center ot a
bitter election contest for tha
last four years became effect
ive today when his letter of
resignation was presented and
read in the senate.
E
1997 VOTES
Offical Count of Ballots
Cast In Marion County
Completed Here By
Canvassers.
Walter Pierce led Governor 01
cott by 1997 votes in Marlon
county in the election on Novem
ber 7, and the so called compul
sory school bill was defeated in
this county by 1178 votes, ac
cording to the report of the offi
cial canvassing board, completed
this afternoon. Mr. Pierce receiv
ed a total of 8522 votes In Marlon
and Mr. Olcott 6525, A total of
6442 persons voted for the school
bill, while 7620 voted against it.
Other votes cast were as fol
lows: .. -.
' Superintendent of public In
struction J. A. ' Churchill 10,
282; S. S. George 3739;
Churchill's lead 6543.
Mr.
State treasurer O. P. Hoff
9393; F. L. Tou Velle 4589.
Justice supreme court George
Burnett 12,463; John McCourt
11,227; John Rand 11,038; Roy
Shields 3; S. M. Endlcott 3.
For congressman W. C. Haw-
ley 9293; Elton Watklns'9; M. J.
Van Volkenberg 2; A. W. Nor
blad 5.
For labor commissioner C. II.
Gram 9841; B. H. Hanson 2802.
For public service commiHsion-
er Thomas K. Campbell 8330;
Gus E. Erickson 1907; T. M. Ker
rigan 2567.
For circuit Judge George G
Bingham 11,966; Percy Kelly
10,711.
For state senator Sam Brown
11,572; A. M. Lafollctte 11,077;
Louis Lachmund 3; George Hubbs
5; Fannie Kay Bishop 4.
For representative Thomas B.
Kay 10,276;L. H. McMahan 10,-
986; L. T. Reynolds 10,898; O.
J. Wilson 10,849; Ivan Martin
3; J. C. Perry 6; Mrs. F. K. Bish
op 17; Frank Bowers 4; William
Taylor 3; George Crlffith 2;
Clarence ' Blakeley 2; Henry
Downing 2 .
For county commissioner Jim
Smith 11.4-12; Andy Slgman 2.
Amendment permitting Linn
county a tax levy to pay outstand
ing warrants Yes 5320; no 4691
Amendment permitting Linn
and Benton counties to pay off
outstanding warrants Ves 5055;
no 4394.
Single tax amendment Yes
1699; no 9880.
Exposition tax amendment
Yes 3882; no 9880.
Income tax amendment Yes
3421; no 7883.
For the city of Salem the vote
was as follows:
For mayor J. B. Giesy 2996;
H. H. Vandevort 2460.
For city recorder P. L. Frai
ler 2396; Mark Poulsen 2688.
For city marshall W. W.
BIrtchet 3598; Verdcn Moffltt
1910.
For councilman, fifth ward
Jos. N. Smith 278; G. W. Thomp
son 309.
For measure making police
chief apointive Yes. 2599; no
2368.
For measure authorizing bond
Issue for purchase of fire engine-
Yes 3359; no 1479.
DR.' UTTER REMAINS HERE
Although Dr. F. L. Utter, Sa
lem dentist, and his brother. Dr.
E. H. Utter, will open a dental
office in Newberg, the Salem of
fice will not be closed, it was ex
plained today. As a result of his
announcement that a ' Newberg
office would be opened, a misun
derstanding concerning Dr. Ut
ter's Salem practice developed.
"We are here to stay," Dr. Ut
ter declared this afternoon.
LEAD
HARD NG SAYS h'
MARINE MEASURE NEEDED
FOR NATION! PROTECT!
President, Addressing Congress in Person, Declares
Proposed Legislation Would Result In Monetary
Savings Foreign Influences Behind Opposition,
He Asserts.
Washington, Nov. 21. Enactment of the administration
merchant marine bill was urged upon congress today by
President Harding as necessary to relieve the government of
present "staggering losses" in operation of the war built
merchant fleet and to establish a program of assured ship
ping to serve the nation in war and give a guarantee of
commerce independence in time of peace.
Personally addressing a joint session of the senate and
house, the executive declared an actual monetary saving to
the government would result 'from the proposed law. He
challenged every insinuation of favored" interests and the
enriching of the special few at the expense of the public
treasury. The legislation, he asserted, automatically guarded
against enrichment or perpetual bestowal.
"If success attend, as we hope it-
will, he added, "the government
outlay is returned, the inspiration
ot opportunity to earn remains
and American transportation by
sea is maintained."
The president said concern
about , the American merchant
marine policy was not limited ''to
our own domain,'' adding that the
maritime nations of the world
"were in complete accord with the
opposition here to the pending
measure." lie declared those
nations had a perfect right to
such an attitude but that he
wished to stress the American
viewpoint, which he said should
be the viewpoint "from which one
sees American carriers at sea, the
dependence of American commerce
and American vessels for Amer
ican reliance in the event of
war."
Urges National Unity
Mr. Harding declared It would
be most discouraging if a measure
of "such transcending national
importance" must have its fate
depend on geographical, occupa
tional, professional or partisan ob
jection. A commercial eminence
on the seas and ample agencies
for the. promotion In carrying of
American commerce, be asserted,
were of no less Importance to the
(Continued on Page Ten.)
The Marlon county court has
Just completed two Jobs of diking
that the court is very proud of,
according to J. F. Hunt, county
commliisioner. One Is the West
Stayton dike and the other on the
Abiqua, three miles northeast of
Sllverton.
Afiout one year ago, just east
of Stayton, a flood washed out
three county bridges, a railroad
trestle and did great damage to
farming property.
To prevent a recurrence of an
other flood, the county court has
built a dike 350 feet long, which
under ordinary circumstances
would cost $3000. With the coun
ty putting in 11000, the railroad
furnishing the donkey engine
and the farmers in the vicinity
adding their labor, the dike has
Just been completed.
It is made of a crib of logs,
nine feet high and 12 feet wide.
Then the crib was filled with
rocks and covered also with
rocks until it is hardly noticeable.
Tbe second dike Just completed
along the Abiqua northeast of Sil
verton, consists of piling and
heavy planks and the dike is val
ued at $600. However, with the
county furnishing the pile driver
and half the material, farmers to
be benefited by the dike gave
their labor, the dike was built
with but small expense to the
county. Last spring the river
threatened to overflow its banks
and destroy the county road north
east ot Sllverton.
COUNTY BUILDS
BARKERS
ERCHANT
WOMAN GETS
SENATE SEAT
Mrs. W. H. Felton Wins
Honor of Being First
Of Sex To Sit In Upper
House of Congress.
Washington, Nov. 21. Mrs. W.
H. Felton, the "grand old lady of
Georgia," won her fight today for
a seat for a day as the first worn-.
an senator.
Without objection from any
senator but after a long delay dur
ing which the status of her ap
pointment to the senate was re
viewed in the light of the prece
dents Mrs. Felton took the oath of
office at the vice-president's desk
and wrote her name in the-senate
membership book.
A large crowd applauded as the
87-year-old woman raised her
hand and bowed to the oath ad
ministered by Senator Cummins
ot Iowa, president pro- tempore
and acting in the absence of Vice
President Coolidge.
The seating of Mrs. Felton was
delayed until an hour and a half
after the senate convened by an
address in support of her claim by
Senator Walsh, democrat, of Mon
tana, and by a recess for attend
ance of the senate at the joint ses
sion to hear President Harding's
message.
The question as to whether a
bank, under certain circumstances
can endorse ft check for a party,
accept tbe money and then credit
it to another person's account, la
now on trial before Judge Percy
Kelly in the suit entitled Amos
Yoder against the State Bank of
Hubbard.
In his complaint, Mr. Yoder al
leges that on December 24, 1920,
the Hubbard bank endorsed his
name without his authority on a
check for $1615.90 and that in
stead of being deposited to hia
account, was deposited to hia
brother's account. Mr. Yoder ia
suing for the entire amount.
In its reply, the bank alleges
that Mr. Yoder, who lived In Ida
ho and his brother, Noah J. Yoder
ot Hubbard, had sold some land,
near Hubbard and that on author
ity of the brother, the bank en
dorsed the name ot Amos Yoder
and applied part ot the proceeds
In paying some ot the expense and
other obligations in the joint land
deal.
CHARGES BANK
MISUSED
1--ai
8- V
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td
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P
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