Capital journal., February 19, 1925, Image 1

COOLIDGE SEEKS NHERITANCE TAX REPEAL
CITY EDITION
Dally iTtnii net paid circulation for
month ending January 31, 1926
6548
Avcrac dally distribution 7071.
Member Audit Bureau of Circulations.
FORTY-SEVENTH YEAR No. 43
REPEAL OF LEWIE
INHERITANCE FIGURING ON
TAX FAVORED
President Declares For
Gradual Withdrawal of
Federal Government
From Inheritance Tax.
Washington, Feb. 19. Gradu
al withdrawal of the federal gov
irnment from the inheritance tax
Meld and greater economy In tax
collection were recommended for
public consideration by Presi
dent Coolidge in an address at
the opening eeesion today of the
National Tax association's na
tional Inheritance and estate tax
tonference.
The president condemned the
present federal Inheritance tax,
amounting In ltd highest bracket
to 40 per cent, declaring that in
tome instances it. with the etate
ievlea, "closely approaches, if it
le nut actually, confiscation.
"If we are to adopt socialism
It should be presented to the
people of this country as social
Ism, and not under the guise of
e law to collect revenue," he
laid. "The people are quite aMe
to determine for themselves the
desirability of a particular pub
lic policy and do not ask to hare
luch policies forced upon them by
indirection."
Establishment of "economy In
the income revenue," is an equal
necessity with economy In outgo
of revenue, Mr. Coolidge said
adding that the first field for the
practice of economy in inherit
jnce tax collections laws Is state
cooperation.
Declaring there Is competition
etween states to reach In inner-
(Continued on Pane Nine)
REAFFIRMS
OF
iGON TRUNK
Portland, Feb. 19 President
Charles Donelly of the Northern
Pacific railroad, In a statement
ere today, reaffirmed the inten
sion of his company, together with
Ihe Great Northern railway, to
kulld southernly from Bend, In
tcntral Oregon, to Klamath Falls,
Oregon, as soon as the interstate
fommerce commission determines
the issues In the controversy in
rolving the construction of rail
Unes through Interior Oregon. Ar
vuments in this case will be
leard by the commission at Wash
wigton March 27.
"The Indications at present are
Ihat the lumbering industry In the
vicinity of Klamath Falls will un
dergo, in the comparatively near
future, a very considerable
pnnsion. How soon this will take
place Is uncertain, because there is
i believe, some division of sent!
nenf anion? the lenders of that
fedustry as to whether it Is not
tow expanding too rapidly.
"But, however, this may be, -jurposo
in building Into this ;
Htory was to supply its trans-.
tatlon needs, and, speaking for the
Korthern Pacific, I do not hc.sl-
late to iy that our line will be
xtended whenever it ahall be made
V appear that the available traffic
till yield a return on the capital
Vestment required for Us exten
ion."
m stooFpigeoF"
UKELYTO RECOVER
Portland, Ore., Feb. 19. J. A.
faerile, "Handsome Hans," has
) 60-60 chanre to survive the bui
lt wounds In his lungs, received
Tuesday when he was attempting
to arrest a rnunie of alleged boot
fcgarera, said his physicians to
lay. A fear that pneumonia
flight develop wns expressed.
Widespread Interest In the bat
!e that "Handsome Hans" It
aiaklnc for lire wai evidenced to
day, especially In underworld cir
cles where bl operations have
been the eaufe of consMrrph5:
conti'crnatlon in recent mon!!u
OMGON
AGRICULTURAL COUFCf
KZ5 20Ji
'C apitalAJkMraal.
EXTRA LEVY
State's Financial Snarl
Still Untangled Where
Million Needed Is To
Come From Is Unknown
The legislature lias no, yet ex
tricated itself from the states fi
nancial snarl lu which It bee a me
entangled as euon as it reached
Salem 39 days ago. Although to
morrow is normally tho last dny
of the session, new revenue bills
have not been introduced. While
many of the appropriation bills
will probably be introduced In the
house today, some are yet hanging
fire. Notably, the normal school
policy has not been decided on.
To meet the financial emergency
the presiding officers of the two
houses and other leaders of the
legislature have practicably decid
ed that the session must levy upon
the people an addtiionul one mill
tix levy above thi) 1.9-mill levy
by the tax commission last Decem
ber, It is believed this can be
done legally. The question !s
whether Governor Pierce will ap
prove the bill. But if he vetoes
it, upon him rests the responsibil
ity of holding the legislature in
session over the normal period, for
that is what wl" happen if the
revenue bills are not dratted, in
troduced and enacted into law oy
tomorrow night.
There Is a double reason for
making the one mill levy. Oae la
that given above, and the other is
to get the state on an even keei
with respect to the 6 per cent tax
limitation amendment. The De
cember tax levy was about a mil
lion dollars short of what it could
have been under the 6 per cent
limit, so if the levy is not now
made up to the limit there will be
lacking a sufficient basis next
year for the annual levy, and so
on Indefinitely.
The ways and means committee
and the governor are still sticking
to their plan for a cigarette lax,
and may extend it to include
cigars. A 20 per cent instead of a
10 per cent tax on cigarette is now
talked. The reason for this la to
get' away from the proposed in
crease In the insurance tax. A
delegation of Insurance men ap
peared before the committee last
night and protested against the tn-
(Continue! on Page Eight)
A portrait of the late Robert
Grouch Kinney, a member of the
first Oregon territorial legislature
and constitutional assembly, was
presented to the State of Oregon
this morning by relatives. Chief
Justice McBrlde making the pre
sentation speech. Governor Wal
ter M. Pierce accepted for the
state.
Justice McBrlde explained that
Kinney camo to Oregon In 1847
and was a legislative and constitu
tional leader.
Senator Kinney Is a-daugbter-in-law
of the pioneer lawmaker..
Little Edna Walker, a great
granddaughter, unveiled the por
trait at the joint session ceremony
held in the house.
Joe Knowles, who gained con
siderablc publicity a few years ago
from his outdoor habits of living
on the bounties of nature, painted
the picture.
nins wnntMrTnMfnnc
iuluu) ii u ii i m mi wiuiil.
SOLD TO SGHLFSINGER
fern Francisco, Feb. 1 9 Lee
Schlenlnger, retiring manager of
th City of Par In Urygoods com
pany, his father, B. F. SOilesinger,
head of Die May department store
in Los Ant; file and his brother
Richard Rchlcsinger of San Fran
cisco, have taken over the depart
ment itoi-a or Old, Wortman and
King in Portland, Oregon, It wa
auncunrfil here today by Lee
chfcftlnctr. The two younger
F h!r.lnfcen will be In active
liirsre of the Portland store
oinn t
Congress Acts to
Prevent Demoting
of General Mitchell
Washinston, Feb. 15 The house
aircraft committee in a" statement
today by Representative Perkins,
republican, New Jersey, placed It
self on record as having received
yesterday from what It regarded
as "reliable sources," a report that
"Brigadier General Mitchell, assist
ant army air chief, had been sum-I
moned to the whito House today
to be reprimanded by President
Coolidge.
Tho information he said, did not
come from General Mitchell. The
fact that the general was not sum
moned to the White House today,
he added, gave him no reason to
change "my opinion as to the
credibility of the report.'
In an effort to forestall any dis
ciplinary action in such cases as
that of General Mitchell, Repre
sentative Laguardla, republican.
Now York Introduced resolutions
today to prevent any army, navy
ASKS CUT IN
GRAZING PEE!
Washington, Feb. 19 Reduction
or cancellation of the grazing fees
on national forests was demanded
in tho senate today by Senator
Aflhurst, democrat, Arizona, who
criticized treatment of the indus
try by the department of agricul
ture as "indifferent and ignorant,"
Senator Anhurst declared the In
dustry faced extermination" as a
result of Injustices deliberately lm
posed by the government." He
charged the department, of agri
culture had a "deliberate lobby
seeking the defeat of bills In con
gress aimed to relieve cattle grow
ers." Resolutions adopted by the Ari
zona Cattle Growers association
asking a reduction in grazing fees
and repeal of a ruling forcing re
moval of fences of the public do
main were read by the senator.
$50,000 JOB OFFERED
TO SECRETARY HUGHES
Chicago, Feb. 19. Chartos
Evans Hughes, secretary of stitp,
may have waiting for him when
lie retires March a more lucrative
position.
He ha been urged as the head
of the International Council of Re
ligions Education In Its financial
reorganization work at $50,000
annual salary.
J. L. Kraft, treasurer of tho
council, meeting here to discuss
financial problems, made 'the rr
posal. Jessenh Promoted.
Washington, Feb. 19. Lewis C.
Jcaseph, district manager of the
veterans' bureau at Seattle, tolay
was appointed chief of the Insur
ance division at the bureau's head
quarters here.
GLIMPSES
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SALEM, OREGON, THURSDAY, FEBRUARY 19,
ran
or marine corps officer from be
ing "transferred, demoted, repri
manded, disciplined, or otherwise
punished" on account of testimony
before any congressional commit
tee or during a period when his
testimony is required.
Washington, Feb. 19. Instead
of going to the White House today
for his much-advertised "repri
mand' from President Coolidge,
Brigadier General Mitchell ap
peared once more before the air
craft committee- and re-affirmed
his opposition to the administra
tion's aircraft policy.
Before he took the stand, the
general disclaimed all connection
with the report of a White House
summons which broke up yester
day's committee meeting. Com
mittee members who received
(Continued on Page Seven)
CALL WITNESSES
E
Washington, Feb. 19 After more
than two weeks of deliberation, the
grand jury here considering the
new charges against Senator Wheel
er of Montana, called before it to
day some of the principal figures
in tho senate Wheeler investigation
of several months ago.
Tom Stout, a former member of
congress from Montana, who tes
tified before the senate committee
In regard to the Gordon Campbell
land permits, was one of the wit
nesses examined.
Mr. Stout was followed by E. S.
Booth, former solicitor for the in
terior department, whose corres
pondence with Campbell was in
troduced Into the senate inquiry.
Still another witness summoned
for today was James H. Baldwin a
law partner of Senator Wheeler,
who government counsel said was
subpoenaed at the senator's re
quest. WW
OF ALL CHARGES
Washington, Feb. 19. Charles
H. Burke, commissioner of Indian
affairs, was exonerated by a house
sub-committee today of charges
of maladministration preferred
against him by Hugh Murphy,
former Judge of Okmulgee county,
Oklahoma.
The Oklahoma courts were vin
dicated of charges brought against
them by the Indian nights associa
tion of Philadelphia.
The Barnett case formed the
major basis for the Murphy
charges.
OF LEGISLATORS BY MURRAY WADE
JACK.
KING
IN YH
OF LOBBYIST
Hf RE ARB tO
OF MIS CLAIMS
FAME - VJHtN A
VA SO 5WEET
MOTHER HADTOPOTU'
My HAIR IN ONIOMS TO
KCEP THCCIRLS AMMy-'
M t l TMIl PAPAO f
PAY KIN6 FAMOUS N,
CATOOf4tST HC HAt
OATHHOUSSJ Pkowi il. A
AM TO TOt.OMT6 -WA1 TMi
BAIL COACH IN Igt-C)
. v - i ' i M'jfKi 111
W I M &r -:.
BATTLESHIP
PLACED ABOVE
i AIR POWER
Coolidge Accepts Navy
Theory That Warship
Rules Supreme at Sea;
Mitchell To Be Demoted
Washington, Feb. 19 Definite
acceptance by President Coolidge
of the navy department theory
that air power can never super
cede battleship supremacy at sen
Is Implied if not stated, In his an
nounced 130,000,000 naval construe
tion program-for the present and
ensuing fiscal years, now before
congress.
Thin was disclosed In the publi
cation today of the report ot the
navy general board, acting as n
special board of Inquiry by the
president's direction, on the rela
tive military value of aircraft, sub
marines, and battleships, along
with a statement by the executive
showing a basis of the appropria
tions he has forwarded to con
gress. While the president made
"no" direct reference to the
board' findings, his statement
shows acceptance In principle, but
on a modified scale, of the board's
recommendations as to the prior
ity and nature of maw construction
for the navy.
The board recommended lm
mediate modernization of six of the
cider battleships as the first re
quirement for the nnvy. The pres
ident in his program for modern
ization without gun elevation, cut
this numbar to three ships and
eliminated another recommenda
tion 'of the board for moderniza
tion of seven other battleships "as
soon as possible."
In the board s recommendation
for prompt completion of the two
(Continued on l'npre Six)
TAXES ON OLEO
Washington, Feb. 19. The pro
test of southern states against pro
posed legislation by western dairy
states to Increase taxes on oleo
margarine, a cotton oil substitute
for butter, was heard again todiy
in the senate.
The states particularly mention
ed were Wisconsin, California, Ida
ho, Indiana, Missouri, Nebraska
Ohio, Oregon and Utah. Southern
senators declared that if the west
persisted in such legislation, th
south would take similar stepi
against western products.
A telegram from Governor
Moore of Idaho, put into tho rec
ord by Senator Gooding, said a tnx
bill passed yesterday by the Idiho
house appeared to him "too raul
cal.M
HUNTfcK.
VJVMO MAS OONff
600O wo iN
5 c5 v y -
Hit rATMRBt A MO
Hit 6PANDP-ATMRre
MRB.1 OP
THE GRK60N
uhlt(is
RtP.Hr.99e J IDtA. CP
BtiHO A COCO UCOUL ATOR
13 TO SIT t A3V AND
A1tH HARD .
1925
Aircraft Chief To
Be Demoted For
Criticizing Policies
AA
liriKndlrr fti-ncral William Mlti'licll
NEGOTiATSONS
ON FISH BILL
Governor Pierce this morning
denied that there are any nego
tiations going on between his of
fice and members of the legisla
ture relntlve to senate bill 94,
which would take the power of
appointing members of the state
fish commission out of hie hands
and vest it in the board of con
trol. Tbe bill is i on the house calen
dar for today, but reports are
current that it would be tabled
pending the outcome of negotia
tions with the governor which
would effect a compromise.
The compromise proposal is
that a bill should be drafted in
which the members of the fish
commission should be named. Ttie
proposal suggests the names ot F.
P. Kendall, present chairman of
the commission, Commissioned
Eakin, an appointee of the gov
ernor, and Jefferson Myers, for
mer state treasurer end the se
lection ot the chief executive for
a berth on his deposed Port of
Portland commission.
"I know nothing about any
such a proposition," Governor
Pierce said this morning. "I can
see no reason why I should coin-
promise on thin matter. Do you?
As the fish bill now stands It
has pawed the senate by a barn
majority and can muster enough
votes to pass the house, but the
senate is sure to sustain the veto
whirh the governor will tnck onto
It if it is sent up to him.
INCOME TAX COLLECTION
BILL PASSES HOUSE
House hill 440, providing (or
the collection of unpaid 192:1 in
come tuxes, was passed unanimous
ly by the house tliln morning. Tin
hill was introduce! by the com
mittee on assessment and taxation
It Is Virtually a re-enactment ot
the repealed staio Income tax !nw.
hut will apply only on the unpaid
taxes or 11123 and then no out of
existence. The hill will ho hur
ried over to the spnnte for action.
Tonight
winui.
Local:
river. 6.4,
northeast.
nnira TUDT7T? fTTMTQ OS TRAINS AND NKW8
rnlvu inKCiCi imnio stands pivb cents
MmL
WE KILLS
BILL TO SLICE
Effort To Enlarge Mult
nomah Defeated After
Spirited Debate Full of
Personalities.
The Staples bill for the annexa
tion of part ot Clackamas county
was killed by indefinite postpone
ment in the senate today. This was
on adoption ot -the majority report
of the committee on counties, sign
ed by Dunn and Tooze. The mi
nority report, favoring passage 01
the bill was signed by Clark.
The debate was replete with
personalities. Those voting for
the bill were Banks, Ca rimer
Clark, Hall, Magladry, Rltner an t
Stuple3
Senator Staples, who Introduced
the bill, declared It tho question
were left to the people of the aroa
Involved 05 per cent ot them
would vote for It. He declared
that part ot Clarckamas county is
really a suburb ot Portland.
Senator Tooze dramatically
moved that the courtesies ot the
senate be extended to a large
group ot students from West Linn
(Continued on Page Hight)
E
Failure of Governor Pierce" to I
respond to the demand made lu
house resolution No. 11, calling
upon him to make public the re
port of the special committee, he
nppolnted nearly a year ago to In
vestigate report! of trregularltleH
!n tho conduct of the corporation
commissioner's office, thin morning
moved Speaker Iturdlck to adlrenn
a letter ot the governor aKkltiK
what he proposed to do In regard
to the resolution, which was pass
ed, nlgncJ and delivered to the
governor last Saturday.
Month ko when reports were
current of the mlauso of funds of
the corporation department by
employees of that department Gov
ernor Pierce appointed a commit
tee to InvcstiKate the reports and
submit th'?ir finding. The Inves
tigation wai made, hearings held,
testimony taken and a report, to
gether with findings and a trans
Ncrlpt of the evidence were submit
ted to tho governor. They wero
never made public, and nothing
had since boon heard of them un
(11 tho Introduction of the house
resolution demanding that they be
made public.
U. S. ATTORNEY
Portland, Ore., Feh. 19. A
special dispatch to the Portland
Telegram from Washington today
says:
".Senators' McNary and Stan
field today In writing joined in
a recommendation to the president
that he appoint George Ncuner,
Jr., of HoHchurg, United States
district attorney for Oregon. It
is expected that the president
will concur In the recommenda
tion and send in Neuner'a nom
ination to the senate this week
A favorable report by the senate
Judiciary committee and speedy
confirmation by the senato are
expected to follow."
Amitv Defeat Yamhill.
Amity high school Uefea'ed
Yamhill by a snore of 17 to 10 oj
the Aml'.y floor last night. Hie
tilt, which was hard fought Qverv
minute of the time, was played b
fore a crowd which packed the
building. Lent to Sparks, frnh
man coach at Willamette. refer-d
th gam and called many fouls
on each nldf. The two trams rl iv
again Friday night at Yamhill.
CLACKAIS
PROBABLY RAIN
and Friday. Mod rat aatrfy r;
max.. 41: mln., t5; rain, none:
fulling; atmos., cloudy; wind,
Obscene Pictures Flaye
In House Which Delay
Action For Printed
Amended Bill
By HARRY N. CRAIN
The moving picture war brok
In the house this morning whej
Representative King moved (o
the adoption of his minority re
port to kill by indefinite postpone.
ment Representative Tucker ' sul
mute for house bill 409, whlcl
came out of the committee 01
health and public morals with i
"do pass'1 recommendation signet
by four members of the committee,
Since yesterday morning th
forces favoring this measure ana
those seeking to kill it, Including
a strong lobby, have been
maneuvering about to strengthen,
their positions. House bill io
was on the calendar for yesterday
morning, but when It was reached
in the regular order of buslnes
Tucker asked that it be laid on th
table while he prepared som
amendments. Later In the day,
with the amendments prepare!
the bill was taken from the tabl
and referred? back to the commit
tee. The amendments needed t
repair the technical defects In thi
original and to provide eufflclen
rovenue to make the censor hoar
self-supporting and financially
able to function wore so numerous!
that the majority of the commute.
decided' that It would be best t4
bring in a substitute measure.
The first substitute to be dccld
ed upon corrected the defects ot
the original bill, but it also added
ala
(Continued on Page Seven
POTTER FAVORS
OF LEGISLATURE
'My experience In thlfl notion
of the legislature has opened my
eyes to the raulta of the prci-.'D
tjystcm," eaid Representative Pot
ter of Lane county in an uddress
before the Marion-Polk County
Realtors this noon. In which ha,
pleaded for support of a meaaura
providing for two separutu sessions
ot tho legislature, with 20 days
ail nved to elapse between sessions.
"At present It is impossible to
sift out, anulyue and understand
the great numheru ot bills which,
are Introduced in one ses.ioiij
etipcclally when so many are iutro
duced during tho lae tew days o$
that sees ion. Under such coudl
tions the tendency ot the lcgislft
tors is to act, not upon his Judg
ment, but upon his Impulse,' h
istuted. "It Ih important Unit I'lesq
matters be thoroughly digested be
fore they are voted on." Even inj
the case of emergencies hasty afl
tions may bring about a wnruo ra-t
suit than the evil which 1. seeks
to avoid; the speaker maintained.
Mr. Potter took a severe rap if
tho present manner ot enforcing
tho present state prohibition law.
"It is a great mh take to appoint
olio officer to enforce one law,1'
he said. "Kach law should he kepf
on exactly the aatuo touting aa ev
cry other law. When we begin tf
resort to hysterical methods
ods in law
fact."
EDDY BILL TO CHANGE
SCHOOL COURSES KILLE
Tim Kildy hill tor choline l(
the courae o( uluily in hlah whoolj
nt i Ii n mala and mi. city inn rerta1!
required mbjerti waa lndr(inl'.oi
loponed by the hoiike thie m ru'
in. An unfavorable report wal
liruiiKlit In by the houte revlatut;
of liiwn commit toe. No opr-oal'M
nun voiced aKUtnst ha report.
K00OINPOT
TO KILL FILM
I BILL ALLEGED
enforcement wo are treading of
dangerous grounds. 1 believe the
record of this fltato In enforcing
Mio prohibition law during thi
past two years Is proof of thi