Capital journal., January 22, 1925, Image 1

CITY EDITION
D1II7 inmi net paid circulation for
month ndlnf Uectmber II, Jtit
6366
ATcng dally distribution .T6(.
Member Audit Bureau of Circulation!.
THE WEATHER
OREGON: Rain tonlfht and rriday.
Moderate Umparatur. rreah to atroas
aoutherljr winds. t
Local: Max. (0; mln. 43; rain, tracea;
rlTer, 10.2; atmoa., part cloudy.
FORTY-SEVENTH YEAR No. 19
SALEM, OREGON, THURSDAY, JANUARY 22, 1925
nninr mnnm nrviTC ON TKAlNa AND NKWB
r rviuni inniiQ vjjulv m stands five cents
(y apitauL,
MS
.
-i . I
KAY CHARGES
PIERCE WITH
CUniNQ LEVY
Treasurer Accuses Gov
ernor and Myers of Put
ting State In Hole As
Revenge.
That Governor Pierce and Jef
ferson Myers, former state treas
urer, as majority members of the
state budget and tux commission)
deliberately cut the state tax levy
to 1.9 mills to put the legislature
and the state in the hole as a avt
of revenge for the defeat of the
iuuome tax at the November elec
tion was the charge hurled by T
11. Kay, state treasurer, before the
joint ways and means committet
lost night.
With the facts and figures be
fore them showing plainly mat
conditions having to do with stu'c
finances would demand a levy of
about 3 mills, 1'icrce and Myers
sought to force re-enactment of
the income tax by placing the di
rect levy at such a low figure as
to leave the state without euffi
dent revenue unless other tax
Bources are opened up, Kay imi
mated.
He charged that the reduction
bad been made In an attempt to
make good the-governor s previ
ous boi'-tits as to how he would re
duce taxes, and pointed out tual
because the levy has been around
9 mills In recent years, and be
cause of the 6 per cent increase
limitation, the state would be pre
vented from getting back to a nor
mal financial basis for years to
come.
Kay asserted that these two of
ficials, in his opinion, had delib
erately cut the state tax levy to
about 1.9 mills, while all condi
tions having to do with etate fi
nances made necessary a levy ct
about 3 mills. He expressed 1he
opinion that this had been dine
deliberately to cripple the state as
a sort of revenge for the defeat
of the state income tax.
BuaVet Misleading.
Kay asserted that $2,501,912.63
which the state budget mentions
as In excess of estimated revcuues
Is misleading and can be greatly
reduced. He stated further that
the budget commission had re-
(Continued on Pane Seven)
Washington, Jan. 22. The
president's agricultural commis
sion expects to submit next week
Its recommendations for the relief
of agriculture.
Sections of the report are being
drafted but members decline to
Indicate the nature of their con
elusions.
The commission several days
ago gave the president a prelim
inary report suggesting means of
relief for the livestock industry
Since then It has been studyrg
marketing, export problems, tariff
protection and freight rates.
Endorsement by the farm group tn
cons reps and early enactment of
a modified McNary-Haugen farm
measure is sought by the Amer
ican council of agriculture.
Arguments In favor of (he mod
ified hill were presented at
joint meeting last night of the
senate and house agriculture com
mittees.
Hearing of the council's spokes
men by the committee was in line
with a plan on the part of the
congressional farm group to get
behind some farm relief bill in the
hope that It ran be passed at this
session. No decision was reached
as to what attitude should be
taken on the council's bill.
The committee was told that
the bill, while following the gen
eral lines of the original McNary
Haugen measure, which was de
feated In the house last session,
contained none of what were con
sidered as the main objectionable
features of that measure. Not only
will the tariff law be let alone by
the new measure, witnesses con
tended but the price ratio pro
visions of the first bill, have beer,
stricken out.
FARM RELIEF
BOARD DRAFTS
BORAI I
PAMTOF
WAR DEBTS
Attitude of U. S. Defend
ed In Senate More
Generous to Allies Than
To Taxpayers.
Washington. Jan. 22. A de
fense of the American govern
ment 6 attitude toward war debts
was delivered In the senate to
day by Chairman Borah of the
foreign relatione committee.
The United States, he said, had
been more generous to Its associ
ates In the war than to the Am
erican taxpayers.
Deputy Marin's declaration In
the French chamber yesterday
that it would be a moral iniquity
for the United States to compel
France to pay her four billion
dollar debt is regarded by officials
of the American debt commission
as an Isolated explosion rather
than an echo of French official
opinion.
The French deputy apparently
bad forgotten, it was pointed out,
today, that the United States
made no claim for German repa
rations except a small percentage
of the cost of the ;.rmy of occu
pation and damage claims. This
is regarded here as a fact which
the French government cannot
be allowed to overlook.
After senate adoption yester
day of a proposal that It author
ise and request President Cool
tdge to cal) another arms confer
ence, Senator McKellar, demo
crat, of Tennessee, presented a
resolution that would request
the president to obtain Informa
tion as to whether Great Britain
had violated the existing arms
covenant in the construction of
Rodney and Nelson. The two
ships have been described In the
senate as combination battle
ships and aircraft carriers.
In the meanwhile, the senate's
action in accepting as an amend
ment to the naval supply bill
yesterday, without debate, the
proposal for another arms con
ference stood in a little clearer
light today.
FOR PORTS ASKED
The house this morning adopted
wnate joint memorial No. 2, ceil
ing for aid from congress to de-
velop coast ports of Oregon.
Washington an ? northern Califor
nia.
.The bouse suspended rules to
pass house bill No. 110, introduced
by the ways and means committee
to met sundry deficiency expenses
of the state. The emergency board
has approved the expenditures.
which in turn have been approved
a'ld recommended by the ways sad
means committee.
The bill calls for approximately
$135 000. It covers among other
matters the cost of reconstructing
certain buildings destroyed at the
penitentiary by fire in 1923, sure
ty bond premiums for the state
treasurer, funds for fighting the
uiraifa weevi I and many otiiri
items.
Fhr.ee Ears Too Many
Boy Loses One Under
Local Surgeon's Knife
Children bom with extra
linger., extra toes and even extr.i
arms are not unheard of. In fact,
people have been seen with almost'
everything fron. an odd chin U a
tray leg fastened to the body at
ome handy pyint. But when J'rn
:ny Gentry of Otis. Oregon, wvfc
ed Into the Deaconess hosn't-il
yesterday, doctoia there immoll
itely derided that he had epr-jng
"jmething new.
Jimmy had t!:ree ears.
The extra one was a tittle
miller than the rest and wjs
pfirkod immediat ly In front of Ins
left ear thi-t in front of bis
,Ia"T If ft f ar.
.Tlintiiy thought two ears were
til he Tweriod Th hnv pt mr-hn.tl
I made life miserable for him ta'k-
Letters on Cleaver
Pour In at Rate
Of Fifty per Day
With letters volunteering in
formation relative to the acts of
George I Cleaver as prohibition
commissioner pouring In upon Sen
ator Garland, chairman of th?
joint committee Investigating that
department, at the rate of about
50 a day and with others calling
upon him In person or over tha
telephone, the legislative probe
into Cleaver's record was getting
into full Bwing today. Slow but
gratifying progress is being re
ported by the sub-committees
delving into the mysteries of tne
documents, correspondence and
accounts of the department.
The promised appearance of
Clyde Johnson, former district at
torney of Lane county, before the
committee this artornonn is ex
JURY FAILS TO
REACH VERDICT
Jersey City, N. J., Jan. 22.
The jury In the trial of twelve
Weehawken and Jersey City police
officials and citizens, charged
with violation of the state prohi
bition laws, reported this morning
that It was unable to agree on a
verdict. The judge dismissed the
jury. Assistant Prosecutor Mc
Mahon announced that the case
would be retried, possibly within
two weeks.
For the last 16 of the 18 hours
and 53 minutes that the jury had
been out, H. A. Lauenstein, the
foreman, reported nine men had
stood for conviction with the re
maining three stubbornly refusing
to change their acquittal vote.
The first ballot was 8 to 4 for con
viction, it was reported. The
police defendants, all In uniform
smiled broadly.
STEALS $38,623
Kansas City, Mo., Jan. 22.
Fred A. Day, cashier of the Meth
odist Book Concern here was
charged with embezzlement of
(38.623.28 In an Information filed
today In criminal court. Officials
of the book concern said the al
leged embezzlement had extended
over more than a year.
The book concern Is one of the
major religious publishing houses
in the United States. It was or
ganized several years ago by the
Methodist Episcopal church.
Harold Marshall, assistant pros
ecutor who drew the Information
said that It i based on accusa
tions of George D. Colter, New
York, comptroller of the Meth
odist Book Concern.
Dundee DisaualifieoS
P-iris, Jan. It. (by Associated
l'rcsfl. ) Johnny Dundee, form-i
featherweight champion of the
world, and his manager. Jim.ny
Johnston, were disqualified indefi
nitely hy the French boxing fed
eration. ing about his extra one, he sail.
And anyway, he couldn't hear out
of it, so what was the use of carry
ing it around?
Perhaps these were his only rea
sons. Or perhajw he failed to men
tion the hard":-t part of all now
f-arh morning, w!.en he cam.; t
breakfast, his moth'T would givo
him that icy stare and demand to
know
"Jimmy, have you washed 01 1
ihree of your ears?"
Anyway, at the hospital yester
day Jimmy's ettra ear was gently
removed by Ur. Findley, Salem eai
specialist. Incidentally his ton nN
.tnd adenoids were removed at tV
same time.
Jimmy wont hark to hid h'm Pt
Otis this morning. He Is feeling
very well, thank you.
pected to provide the first real
thrill of the probej and gossip Is
general about the lobby to the
effect that Johnson's testimony
will develop a definite line of In
quiry on the part of the commit
tee. This morning Senator Garland
said that Johnson had advised the
committee that he would "show
Cleaver up," and tell everything
he knows. He Is said to know
considerable that will not do
C leaver any particular good.
Among other matters he is ex
pected to shed a lot of sunlight on
the more or lers mysterious activi
ties of one o. Cleaver's special
agents by the name of Brady in
Lane county. Brady, so the storv
(Continued on Page Four)
FOR STATE BUWL
A board of regents for the
state school for the deaf and the
atate school for the blind would
be created by a bill introduced by
Senator Corbett today.
The board would be composed
of seven members. These would be
the etate superintendent of
schoole, the dean of the school of
vocational education of the Uni
versity of Oregon, the dean of the
school of vocational education of
the Oregon Agricultural college,
the president of Oregon normal
school and three citizens of the
etate at large, two of whom would
be women. The latter three would
be appointed by the etate board of
con trol for terms of t h ree, four
and five years respectively, from
June 1, 1925, and thereafter the
terms would be five yea re each.
Another bill introduced by Cor
bett would empower the state
child welfare commission with
authority to fix standards of qual
lficatlons for the superintend
ents and Instructors of the state
Industrial school for girls, and
etate training school for boys and
the state Institution for the fee
ble minded. Should vacancies oc
cur in the superintendences of
any of these institutions the com
mission would furnish the- state
board of control with a llet of
eligible for appointment.
nor nrumi
A
u.
Joint session of the house and
icuute roads and highways com
mittees will be held next Tuesday
night to take up the Swan-Oukes
bill providing fur rigid licensing
and control of bus and truck liu-ii.
The bill, prepared under the di
rect ion of the railroads, wou.'d
place truck and bus lines und?r
insurmount jhL handicaps as it
now ctauds. The committees mt
1 tie tw'iite night will consider houfc?
bill lit, introduced by the joint
roads and highway committee at
the request ot the governor' spe
cial committee. mis Is also de
signed to regulate commercial ear
ners on ro;i Us and highways of
the state. Representatives of b-Jtii
proponents and opponents of the
two measures will be on band.
The house roads and highways
commit teei will report favorably
on house bills No, 2 and No. 48.
The first denies a motor truck as
a carrier of three-fourths of a tci
capacity. The second relates to
agreements between county courts
and cities for road work. Tne
two measure were considered b
the roads and highways commi;
tee of the house last night.
A fleet of bills representing the
.Tovernor's special committee re
ommendat ions on highway mat Mr
and fnlrodu. ed by the Joint roid.
nnd highway committees will be
discnfiurd and taken up by tn"
house committee next Monde v
night.
Doroth Dawn Weds.
Nf w York, Jan. 22 T,ar,-
emni!. errefn comedian tedty ob
iainf a license to marry Uoruliy
Dawn, a film actress.
m
PLANS
E
I
Mills Post-Primary And
Jackson County Pre
Primary Plans Before
Legislature For Action.
Tty Harry X. C'rulii
With two diametrically opposed
plans for modification of the di
rect primary system before the leg
islature, members and observers
are today examining Into the rela
tlve merits of both and speculat
ing on the possibility that a divi
sion will arise which will defeat
submission of cither to the elector
ate Shorn Of all confusing details
relating to the selection of dele
gates to the nominating conven-
-V proposed by both, the plans
im .ess to seek the same end the
-tion of party responsibility.
Ti.I? Mills plan, with which the pub
He Is more or less familiar thru
the columns of publicity that have
been given It in the newspapers.
would provide for a nominating
convention to be held following
Hie primary to nominate candidates
for offices where none of the can
didates In the primary received
40 per cent of the vote. The con
vention would also formulate a
platform to be binding upon all
of the can J i dates of that party.
The second plan, offered by the
Jaekion county delegation, is pat'
terned closely after the suggestion
advanced by I. N.- Day something
moro than a year ago and which,
in pait, has been in operation In
Jackson county. It calls for nom
inating conventions to be held
prior to the primary elections, with
tho stipulation that Independent
candidates would be permitted to
seek nomination in the primary.
The candidates nominated In the
convention would be so designated
on the primary ballots, and they
would be pledged to tha platform
drawn up by the convention.
The advantage claimed for the
Jackson county plan Is that It
would give no opportunity for the
growth of "boss ruled conven
tions, and wou'd not utftmlt of
manipulation of candidates tn the
primary to defeat the expressed
choice of the voters.
Whatever miy be tho merits or
demerits of the respeclive plans
there is no gainsaying the fact
that both will come up for final
consideration with strong organi
zations behind them, anl that the
generals of the opposing forces are
tight now marshaling their forces
for the contest that is Inevitable.
The pre-bal!oting contest for
strength will likely prove one of
mo interesting floor campaigns of
the session. Inasmuch as there Is a
largo percentage of the member
ship of both houses not yet ready
to commit themselves to either
scheme, and a generous sprinkling
of those who are not friendly to
any tampering with the primary
system.
REICHSTAG APPROVES
CHANCELLOR'S PROGRAM
Berlin, Jan. 22. Illy Ansoel
ated Tress) The reirhstag today
approved the government ' pro
gram as outlined by Chancellor
Luther, by a vote of 24 6 to 1C0.
The new government of Dr.
Luther was also approved hy the
relchstag the vote being 228 to
180.
10 REST 0 R
GONVEN
Plans for Linen Mill
Arrive from Ireland
Work to Begin Soon
Tentative plans fur tho M, C
Miles linen mills ur rived this
morning in the mall from lielfa.i;,
Ireland, whre Hubert H, Han u.
son-ln-luw to Mr. Miles, Is work
ing with Kai t hair ti. La w s m
Coiub., Harbour, Ltd., man Lec
turers of linen inarhiiifiy in th"
planning of th? Salem mills.
With the completion of the san
itary Ft'T now being construct
ed st the or;itmn of the mill il'.
on Fairground road, and the vth
lequent dralmiRe of the site, r-ut-:truntion
work will bejin at OU'C.
..ccording to Mr. Miles.
Tr.! in d lin -n null fiiglirers
will be brouRht iorn Ireland tn
iuiirintrndent the setting up of
Name Governor's Son
In Bribe Scandal
Mil' '?
Russell O. Davis. 27, son of ex
Governor Jonathan M. Davis, of
Kansas, was snapped in a Topeka
court, where he and his father ap
peared, on the governor's last day
In office, to answer to charges of
selling a pardon to Fred W. Poll-
man, convicted banker, for $1250.
Both denied their guilt.
MINOR BILLS AT
TODAY' SESSION
The Banks bill passed hy the
senate yesterday providing for
appeal to the courts from license
revocations reached the house
this morning and referred to the
committee on revision of laws.
The house passed three minor
bills this morning. One introduc
ed by Swan provides for a change
in the code covering wills and
would make all wills void in cae
es of marriages.
Houte hill No. 15, introduced
by Winslow and providing for
more rigid inspection regulation
of the Tillamook county da'ry
herds was passed.
House bill No. 53 Introduced by
Fisher, Douglas county, passed It
provides that certain stork may
run -at large Jn sections of Dong
las county not permit ted under
the present law.
House bill fifi, Introduced by
Shrock of Clackamas county, pro
viding for use of the sutne text
bonks In all elementary public
schools of tho state was laid on
the table at the request of its au
thor. A bill widening the scope of
the dairy herd inspector of Linn
county. Introduced by Tucker of
Linn, was a new measure intro
duced. The house game committee an
nounced a public hearing for 8 p.
m. tonight to consider house Joint
memorial No. 1 requesting con
gress not to pass the proposed
federal migratory bird refuge act-
WASHINGTON SOLONS
VOTE TO SPLIT SESSION
Olympfa, Wash., Jan. 22. Or
position to Governor Hartley s
program of a shortened session
witii an extraordinary session (o
be called next fall, dwindled ti J
minority of eight votes In both
houses when a joint resolution ur
cepting tho governor's rec.va
mendatlons paused both hour's.
the mill machinery. This mnelilii
ery is being made at the llelfust
factory of the Kairhairn company
and will be shipped, direct wat.r
freight from Liverpool, Kngland,
to Portland via the Panama canul
The machinery manufacturior:
firm Is one of the best In the Hrd
ish I tiles and has three motu'ei
factories, one located at Lec-J-.
Knland.
Mr. Ilann has been In Ikl.'rsi
since July, and v.iij remain there
until the complete Set of machin
ery Is sent to Salem. The fart th.tt
no factory In the t'nlted fiftes at.
tempts to nmnufnetiire linen inn
rhinery forced Mr. Mils to go t
Irclind for bis equipment, he explains.
bank cunt mww
INTRODUCED PLAINLY SEEN
BY BUTLER
Greater Power To Super
intendent and Greater
Protection to Depositors
Required by Senate Bill
The revised banking code, pre
pared by the legislative committee
of the State Bankers' association,
was Introduced In the senate today
by Senator Butler, chairman of the
committee on banking. By giving
greater power to the state superin
tendent of banks the measure
places certain restrictions on banks
and trust companies by removing
certain assets held not legal for
Investment In the various depart
ments. Capital stock requirements arc
bolstered up by the bill. Under
this measure the minimum capital
stock allowed would be $25,000,
applying to towns with population
ot 3100 or less. At present this
minimum Is $15,000. For towns
with population from 3000 to 25.
000 a capital of $50,000 would be
required. For cities with popula
tion from 25,000 to 60,000 a cap
ital stock of not less than $100.00"
would be required, and for those
of more than 50,000 the capital
stock must be at least $200,000.
One exception is that for cities of
more than 50,000 if a bank is lo
cuted two miles or more from the
postoffice by the usual route of
travel nnd $50,000 capitalization Is
sufficient.
Greater protection to depositors.
imrtkmlarly savings depositors, 'm
afforded by a requirement that
capital shnil be segregated between
the commercial and the savings
departments.
To Fix Terms
A bill Introduced by Senntnr
Corbett today would fix tho terms
of members of the child welfare
commission as follows, beginning
with January 1, this year:
The appointee of the president of
tho state medical association, four
years; the appointee of the presi
dent of tho state university, f've
years, all others for terms of one,
two and three year. respectively,
and thereafter all shall hold for
fivo years. Any vacancy which
may oocur In the commission shall
(Continued on I 'ago Four)
WHEAT GROWERS
ASK STATE AID
Senator Taylor today received a
litter and a resolution from llu
vheat growers of Morrow county.
asking legislative aid for Hi
grain men there, where, It ;
claimed, from GO to 75 per cent of
the winter wheat will have to h
re-seed td because of dama
caused by cold weather.
The situation is being plicrl
before the governor and the ieg!
lature. and several weeks ago the
governor said he probably would
ask aid for farmers in some of th.
con ru ie?; In thai part of the state
The Morrow eounty farmers m l
at Lexington, .Monday, and m i it
an estimate of their damage ami
at that time decided to ask th
legislature for help. This blow
following several years of sh.ii t
crops and low prices, lias placed
man of the farmers in a posl'.t;!;
where they are unable to purchi'M
seed for reseeding purposes. The
bunks ere unable to finance tn,
situation. Unless the land Is rt
seded, it Is claimed, bankruptcy
will result for a large number ot
farmers and banks.
Action, It Is declared, must he
taken at once or it will be too t
to ilo any good.
GAME BOARD WANTS
TO LICENSE WOMEN
Women will be compelled to oh
tain hunting and fishing lire';?-'
as well as men under an amend
rnent the game committee w i!l
propose In a bill this nfterni o i
The game committer will also pn
p me a section addition to ihi
name code making It possiht- l.:
disabled soldiers, sailor and ma
rlne to hunt and fish without 1!
cerises.
FROM SHORE
Craft Burning Off Hunt-.
ington Beach Believed
To be Oil Tanker; Huge
Clouds of Smoke Rising
Huntington Beach, Cal.. Jan,
22. Indications that an oil
tanker Is afire about 10 miles off
shore from here were reported to
day by representatives of the Av
sociated Oil company field office
who said they saw through field
glasses a vessel apparently burn
ing with large clouds of black
smoke, assumed to be from oil.
Ran Pnlrn Pnl Inn 99 Ui-
din Mill. l,-nn.l,Ji rA.
st'ls believed to be in the vicini
ty or me crau reported ourninff
off Huntington Beach, some 12
miles south ot here today. Ma
rine olmervers reported that three
oil tankers might be in the posi
tion, me inanee waison, ins
H M Klnrnv nnH iha Tanim Tha
Watson Is en route from San
Diego to San Pedro, while the
Storey and Taclto put to sea from
this port eany today wit a oil
cargoes.
Huntington Beach, Cal., Jan.
22. Observers with Ion? range
glasses reported that the vessel
afire, now about four miles from
Seal Beach, was a craft about fif
ty feet In length, apparently a
fishing boat or a pleasure craft.
They said she was not an oil
tanker. Union Oil and General
Petroleum boats are goinp, to heq
assistance.
FOUND GUILTY
Vale, Or., Jan. 22. A verdict of
guilty wnu brought In today lu the
trial ot Bert and Metis Lawreace,
charged with assault with Intent
to kill. The jury retired at 10 30
lust night. The minimum penalty
provided by law for the offense is
a fine of $1''U and the maximum
10 years in the state penitentiary.
The defendants will be sentenced
Monday afternoon.
The defendant admitted they
had strung up Kniph Harvey with
a rope over the limb ot a cotUm
wood tree October 16, near Irou
slde, in northern Malheur county,
but contended they had done so
only once. Harvey testified he
had been pulled np three times oy
the rope about his neck.
Harvey said the attack was
made upon him to force him to
confers that he had Informed the
district attorney of bootlegging:
operations, but the defense held
the affair was staged In order to
scare Harvey Into leaving tie
country because he was continual
ly making advances to Bert Law
rences's w I f e and had been the
eaiipe of a great deal of trouble in
his household.
Washington, Jan. 22 The long
pending Lausanne treaty provid
ing for resumption of diplomatic
relations between the United
States and Turkey had been
brought out of relative obaeurfty
today by a White House dinner
conference concerning its position
In the senate.
At the Invitation of President
rootidge, members of rVo senate
foreign relations committee dis
cussed the treaty at the White
Houe last right with Richard
Washburn Child, former ambassa
dor tn Italy, who represented the
I'n I ted Stales in its negotiation.
The confi renee was said to have
been devoted largely to a presen
tation by Mr. Child of his views
is to the importance of senate
anion on the treaty, which haa
li'Mi pending In committee for
m ire than a year.
LAUSANNE PACT
RESURRECTED