Capital journal. (Salem, Or.) 1919-1980, July 21, 1927, Image 1

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Capital journal., July 21, 1927, Image 1

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Newspaper Page Text.As. - - CIRCULATION C apita onraal FAIR tonight and Friday. Temperature above normal. Low humidity; northerly winds. Local: Max., 94; mm., 51; river, .1 fojt; rain none; atmos., clear; wind, north. Dally average distribution for the monin euaing June 30, imi 9808 Average daily net paid 9418 Member A U'lU Huttau of CtrcuUMon FORTY-NINTH YEAR, No. 172 SALEM, OREGON, THURSDAY, JULY 21, 1927 rrtlUHi llllVIVCj lJiiJMO BTANUU riva ccntb . :j,;""f o u SBAHBEV A FAWHIE il IETTH1 -m Hold Center of Stage BOARD FAST IN DEADLOCK OVER SCHOOL Attempt to Force Con struction of La Grande Normal Blocked Morning paner best, savs Rich ards, the amazing maeiclan and occult seer- Good, but it took a seer to find It out , Whv don't Richards tell the Statesman how to get local people interested in sugar beets? That would be an achievement worthw of wide renown Financial Tangle Causes Postponement of Call for Bids on Job Or he might tell the Statesman what is wrong with its circulation. Walt McDoutfall and Rob Day have parted company as client and attorney, and Walt says the trou ble is that Rob wears suspenders when he plays goli a cardinal sin. Unless four of the nine members of the board of state normal school resents can muster an additional vote and then ask the governor to call a special session of he board there is no prospect for the con struction of the new normal school at La Grande this year and possibly not during the present state admin Jstration. With eight members pres ent and apparently evenly divided on the question, those who favored Immediate construction withdrew their efforts when they say that a vote by the members present would be fatal. Recent W. C. Bryant of Moro was absent and how he would have voted is a question. Instead, the board unanimously voted to defer action for the pres ent. The law provides, however, that if th.ee members petition the governor to call a special meeting he must d f.o, and when the session adjourned it appeared possible that this might n done. COURT DECISION BAR The state financial snarV and the recent opinion of the state supreme ' court holding it unconstitutional for the state to gu into, debt over $50,- ooo was at the bottom of the trouble, In voting to defer action the ooard adopted a resolution Introduced by Rob on the other hand says he never wore suspenders in his life Anyway, we think accusing a man ' wearinz susDenders when he plays golf is hitting him above the belt. Harry Iliff's heifer, Lion's Lilac, i 1 vear and 9 months old. com pleted a record of 10,752 pounds of milk, we are told by the dispatches That's what we call a shame. They have allowed this little heifer no girlhood, taking her while the school girl complexion is still on her check and iiaununs ner lace wj me world, all for a butterfat record Wp hpt thev didn't even cet a ner- mit from Charlie Gram to let her work Wait until Millie Trumbull hears what you have made this little girl do, Harry. AN AMERICAN TRAGEDY. Uy Stoddnrd Kins (Continued on ynve eight) DOLPH LOSES Rpntt.1i!. Julv 21 IPl Missing to-loot Dutt at the nth hole, Frank Dolph, Portland, defending his 1926 title, went one down to Pay Coleman. Los Angeles, at the end of the morning roiin"d of their 36 hole match in the western amateur cnlf tournament, here today. After Bon Stein and Harold Nei- mcyer, both of Seattle, had turned the ninth hole all even, each won three holes on the way home to couare their morning match. Dr. O. P. Willing, Portland, fin ished the first 18 holes one up over Chandler Egan, Medford, Ore., when Euan three-nutted the nth noie, and missed a six-footer for a win at the 18th. Willing won the nth with a par, and they halved the last one. Their In cards were: Egan 434, 354, 64537. Willing 334. 456, 45538. Roy Moe, Portland, was leading Eddie Held, St. Louis, one up at the end of their morning round. Seattle, July 21. W Prank Dolp, Portland, defending nis crown the western amateur golf tourna ment here today, was one down at the turning DOint of the morning round of his quarter final match with Pay Coleman, Los Angeles. He had bucked up against a two-hole lead from the start. Bon Stein and Harold Neimeyer, of Seattle were all even at the turn ing point. At the turning point, the Dr. O. P. Willing-Chandler Egan, and Eddie Held-Roy Moe matches were even. Willing and Egan each made the first nine In 37. Egan won the first two on one putt, while Willing con quered at the fourth witn a pal when the former champion was stymied. The Portland dentist squared the match at the seveni With a one-putt while Egan was taking two. They halved the other hole, In cluding the ninth, with birdie fours, Their cards: Willing, 654, 434. 44437. Egan, 444, 635, 534-37. HUMIDITY CAUSES FOREST FIBE DANGER Portland, July 21. iff) Increas ed danger of forest fires due to the relative low humidity in this section of the Pacific northwest, has caus ed Edward L. Wells, meterologist the local office of the United Stat weather bureau to Issue, warnings all tourists and c&rnpers. Standing timber Is endangered, Wells yft, by the exceeding drj t,ess of the woods, rne present la dry weather, will continue, is the forecast for this vicinity. GOOD EVENING SIPS FOR SUPPER By Don Upjohn INDICTMENTS COME AS ECHO OF BANK CRASH Olmstead and Wheeler Get $796,514 Through Check Kiting, Charge Total of $11,000,000 In volved in Operations Over 3-Year Period Coroner's Inquest In Progress Over Death of Sawyer After holding a Jury and witnesses for over an hour this afternoon county and state authorities decided to postpone until later a coroner's inquest into the death oi Maynara Sawyer, druggist, who was killed Tuesday night by an automobile driven by Mrs. Ruth W. Lockwood. The Inquest did not convene and no witness was called. Inasmuch as the criminal charge of manslaughter has already been filed against Mrs. Lockwood tne ox- ficials decided to confer furthar as to whether an inquest is necessary, and It is possible that no coroner's probe will be made. Quite a large crowd nad gatnereu at the Rigdon mortuary to hear the evidence, although the time set for nlcture nroducers have general wage cut News Motion ordered i item. In a poor house out at Hollywood A Kiarviiir iiini star lav: He had been forced to quit for good, Or work for smaller Day. His sunken cheeks were flushed and hot. nis olie-ht touched every heart He lay upon a pauper s cot uecause ne iovc i nis aru "Your name upon the dotted line!" cruel noss nan erica; He thought of gentle Clementine, Ills lalpsL fairest bride. Consent was not his own to speak, The word was hers to speaic, And how could she God bless her! live On two small grand per week? "What, -lake two thousand dollars? No!" The actor said with scorn, 'I'd sooner perish in the snow That uccKs tne mauernorn.- Alasl That art is on the bum; In vain the artist strives I would not mention such a sum To any of my wives:" The harsh producer only sneered (He had, it seems, no souij, And hired an extra with a beard To nlav the actor's role. On mnrfi unon his wretched bed The film star tossed, and -died And every girl he d ever wed. Stood weeping Dy nis siae. Portland, Ore., July 21 (JF) Em ery Olmstead, former president of the Northwestern National bank, yesterday secretly indicted with J. wheeler, timber man and former newspaper publisher, by the feder al grand jury, on charges of mis application of the bank s funds, was arraigned today before Federal Judge John H. McNary, and plead ed not guilty. Attorney William Ralston, repre senting Olmstead, thereupon re quested permission of the court to withdraw the plea and substitute a demurrer to the indictments, on or about September 15. Neither Judge McNary nor the United States dis trict attorney's office had any ob jection, and it was suggested that a hearing on the demurrer be held about the first Monday in Septem ber. J. E. Wheeler was not arraigned today, his attorney, George Joseph, being out of the city. Portland, Or., July 21. 7P) Ar rested on federal Indictments charg- ing conspiracy and violation of the national banking act, Emery Olm stead, former president of the Northwestern National bank, now defunct, and J. E. Wheeler, Port- (Continued on Pat Bight) HOOVER ASKS EXTRA SESSION FOR CONGRESS Paga Seven) SOUTHERN DRYS REFUSE TO LET WHEELER BOSS STATE BOARD INDIFFERENT TO POLK FATE Public Service Commis sion Does Nothing in Air lie Line Abandonment Doesn't Even Know Nor mal School Located at Monmouth BRING GLOTZBACH BACK FOR FORGERY Portland, Or., July 21. (fP) Dep uty Sheriff William Keller will leave tonight lor san Tancisco to iaxe into custody Floyd Glotzbach, ex- chauffeur-husband of Madame Matzenauer, grand opera singer. who is wanted here on a charge oi forcing the name of Mrs. R. u. In- man. wealthy Portland widow, to a $5000 check. Keller will return with the prisoner Sunday night or Mon day. Telegraphic- information received yesterday by Sheriff T. M. Hurl burt was to the effect that Glotz bach had waived extradition. While Mrs. Inman signed the com nlaint acainst Glotzbach, the prose cution is being carried on by the Hibernia Commercial & savings bank of Portland, which cashed the alleged forged check. Rapid City, S. D., July 21 un informed personally, by Secretary tary Hoover, head of the adminis tration's Mississippi relief commit tee of pressing conditions, caused by the inundation of thousands of acres of southern lands, President Cool idge was prepared today to give consideration to the question of whether an early session of con gress was advisable to cope with j.he problem. The president was told by tne commerce secretary that munedi ate general aid was necessary to help the flood area reconstruct Its levees and rehabilitate Its nomes, but Mr, Hoover wiiuut mention ing a special scsstoa. said he was convinced that the refugees could be taken care of unltl congress meets in regular session in Decem ber. He expected that with economy, there would be $3,000,000 on hand from the Red Cross relief fund on November 1, but held "it is impos sible at this date to determine what the necessities will be after that date." Whether Mr. Hoover's picture of conditions in the south coupled with the recommendation of Senator Smoot, of Utah, for an early ses sion, had -caused any reaction at the summer White House, was to be seen, but was expected that the commerce secretary's report would be considered carefully by Mr. Cool- idge in reaching a decision. Washington. July 21 (f1) Renew-! ed discussion of the possible atti tude of southern drys toward a wet presidential candidate, led Wayne B. Wheeler today to disclaim con structions placed on his recent ut terances on the question. A one-sentence statement by the general counsel of the league sent here from his summer home in Michigan, said: "Dr. Wayne B. Wheeler today, re ferring to his discussion of political possibilities, disclaimed the contrac tions that the Anti-saloon League would initiate the nomination of an Independent dry presidential candi date if either dominant political party candidates is right on the pro hibition question. The statement was promted by the declaration of Bishop James Cannon, Jr., and Dr. Arthur J. Bar ton, representing the Southern Methodist and Baptists, respectively, that a recent expression by Mr. Wheeler on the subject represented only his own opinion and not that of the league. A paragraph In the Wheeler state ment referred to, said: "There will be at least one of the national dominant parties which will have a satisfactory candidate for the maintenance and enforce ment of the eighteenth amendment. There Is a possibility that would be! satisfactory. Then the league keeps hands off. If Governor Smith is nominated and the drys in the soulh would rather vote for an independ ent dry candidate for president than for a dry republican, this would give them a chance to register their protest. Bishop Cannon and Dr. Barton objected to this statement, declar ing that while southern democrats would never agree to the nomination of a wet candidate, If the democrats should nominate a wet, "dry demo crats, north as well as south, will doubtless determine what course they will follow." BY HARRY N. CRAIN Indifference apparently sums up the whole attitude of the Oregon nublic service commission toward the application of the Southern Pacific railway, filed with the inter state commerce commission at Washington three weeks ago, to abandon that portion of the com pany's lines in the Willamette val ley known as the Airlie branch, the only transportation connection with the outside commercial world en joyed by some of the richest agn-1 cultural sections of Polk county. While the abandonment proceed ings do not come directly within the jurisdiction of the state commis sion, the presentation of the case of the people of the affected commu nities logically devolves upon It, as is evidenced by the action of the I. C. C. in serving upon the Oregon commissioners a copy of the appli cation with a request for informa tion as to whether or not it would be opposed. Other than to request ub hearing be held on the application, which" request was made 'at the so licitation of a delegation of Mon- .(Continued on ,pano seven) SENATE TO ACT THIRD TERM! STATES WALSH Sandino Plans Attack On Seaport Controling Capital of Nicaragua Managua, July 21. JPh-Notwith-;tand!nK the defeat with numerous casualties which his rebel ban J suf fered at the hands oi American ma rines and native constabulary at Ocotal, General Sandino hopes to capture Tiscapa port, which con trols t .e city oi Managua, now oc cupied by marines. , An intercepted message aoaressea by Sandino to his wife, reads: "Athough they believe me weak, I shall soon occupy the Tiscapa fortress." Another message signed by San dino. which was sent the day after the Ocotal battle and picked up by a telegraph operator at San Fer nando, savs the "onli one respon- rible lor what has happened here, Is the prertc of the United States, Calvin Coolldge, who has supported Adolfo Diaz," (the conservative president of Nicaragua). This messacg, addressed to "all authorities, civil and military,1 to explain why the Ocotal attack took place, declares that Sandino and his men desired to show they continued to defend the constitutionality of Dr. Juan Sacasa (former liberal presi dent), to dispel the idea that they were bandits, and to prove that they preferred death to slavery. United States planes teaching Managua after reconnaissances in the Octotal region, have reported a few bands of rebels under Sandino at Chilpote and other concentra lions of rebel forces to the southeast of Ocotal. Major Ross E. Rowell, In com mand of the aviation squadron, has (Continued on pbb, c;int! PAPER COMPANY SELLS ITS BONDS At a meeting of the board of di rectors of the Oregon Pulp & Paper company held here today with F. li. Leadbetter, president of the organ ization present, authority for issu ance of an additional block of bonds was granted, the latest Issue to total $330,000. The bonds alrady have been sold to the Lumbermen s Trust coin pany of Portland. The proceeds from the sale are for financing com pletion of additions and improve ments to the mill for which a prior bond Issue of (1,000,000 already had been sold. By additions, improvements and alterations the productive power of the mill hts been virtually doubled. It also has been linked up 'in an organization with three other coast plants at Los Angeles, Vancouver, B. C, and Vancouver, Wash. New York, July 21 m New York newspapers today quote Senator Thomas J. Walsh, democrat, Monta- as expressing the opinion that anti-third term resolution will be adopted by the seventieth con gress, and that President Coolldge will decline a renommauon in uei- erence to the third term tradition Even should Coolldge be renom inated, which Senator Walsh be- lieves improbable, the Montana sen ator believes he will be aeieaiea. Senator Walsh said he had no doubt that Senator LaFollette would again Introduce his third term reso lution, which failed oi action uy uie late congress. I assume." said waisn, -mat n will receive the full democratic vote in the senate, and with Senator La Follette sponsoring It, and Senator Moses, of New Hampshire, and some other republican members openly against the third term, I have no doubt it will be adopted." Senator Walsh predicted the tariff and the trusts would be the leading Issues in the 1928 campaign and that prohibition would not figure as a national issue, although it may become dominant In some congressional districts. WINS $10,000 IN SPITE OF DANCING Portland, Or., July 21. P) Mrs. Myrtle Hixon, who, witnesses testi fied, was a clever dancer despite the fact that her foot was so badly Injured In a street car accident last January that she brought suit to recover $40,000 from the Portland Electric Power company, was award ed one-fourth that sum by a jury in Circuit Judge Robert Tuckers court today. Mrs. Hlxson's defense was that she had been "doped" by one of the in vestigators who was posing as an admirer and after eating candy giv en her, she forgot about pain in her leg and was able to walk and dance BLOOD PRESSURE INJURES CHANGE OF EX-CHAMP New York, July 21. Jack Dempsey has high blood pressure and Is not the superman of four years ago, when he knocked out Luis Firpo, but he will enter the ring to night against Jack Sharkey "as physically fit as any human being could be at 32." This was the finding of Dr. Will iam Walker, official physician for the state athletic commission, to day, after the former champion had completely upset advance expecta tions by scaling a pound and a half less than his young rival in tonight's 15-round battle at the Yankee, sta dium. Dempsey weighed 194,6 when he stepped on the scales at Madison Square Garden. He did not meet Sharkey, as had been expected. The Boston sailor, arriving a little later, weighed 190. Examination of both fighters by Dr. Walker revealed them in prime physical condtiion, but the physician pointed to a sharp contract between the Dempsey of today and the fighter who knocked out Luis Firpo four years ago, here. FIT FOR 32 YEARS "Dempsey is as physically lit as any human being could be at da. said Dr. Walker, "but he is not the superman of four years ago. He is no longer the bundle of nerves that faced Firpo. The most obvious change Above, left Jack Dempsey. who aspire? to regain lost ring glory; rightTex llickard, promoter, Be lowJack Sharkey, who Is favored to win chance at Gene Tunney's heavyweight title. ARCHDUKE OF AUSTRIA WORKS AS FILM EXTRA (Continued on paee rovfiii D'AUTREIONT KING FERDINAND'S FUNERAL ON SUNDAY Portland, Or., July 21. W) Gov ernmental rewards for the arrest and subsequent conviction of Hugh Ray and Roy DcAutremont, cannot be paid until three months have elapsed following conviction of the murdering trio, C. B. Welter, postal inspector for the Portland district, said today in answer to a query. As a result, the $0000 reward of' fered by the government for the ar rest and conviction of the three youths, who confessed to the mur der of three Southern Pacific train men In the Siskiyou tunnel October 1. 1023. will not become available for two months. They were sen tenced June 23. The Southern Pacific railway re ward of $2500, the American Rail way Express company reward $900, and the state of Oregon ward of $1500, however, can now be claimed, it was assumed. Paris. July 21. (tP) A Havas from Bucharest says that the burial of King Ferdinand has been postponed from Saturday until Sunday, In or der to permit the rural population to reach the capital to pay homage to the late king. SMOOT DECLARES FOR CUT IN TAXES Journal Service to Picture Every Detail of Fight Punch by punch, move by move, and round by round every detail of tonight's battle between Jack Dempsey and Jack Sharkey In the Yankee Stadium, New York, for a chance at Gene Tunney's heavyweight crown, will be relayed by megaphone to the crowd In front of the Capi tal Journal office, ..lint off the direct AsMocIated Press leased wire loop from the ringside the story of the biggest sporting event of the year will also be posted on the bulletin board for the more deliberate perusal of the fans. The bulletin service will start promptly at 5:00 o'clock, Salem time. Telephone In quiries on the progress of the event will be answered from that hour on over two tele phones, 81 and 82. Denver! Colo., July 21. in1) Re duction of at least $300,000,000 federal taxes next yr, repeal of the federal inheritance tax and special session of congress in Octo- her. are forecast by United States Senator Reed Smoot of utan, a Den ver visitor. He expressed a hope that congress will reduce the corporation tax l per cent, which he said would mean about $250,000,000. "Alter tnai, said, "we will take as many of the discriminatory items as we can. These, he explained, are certain theater, automobile and semi-luxury taxes. COURTNEY DELAYS FLIGHT 'TILL SUNDA Dublin, July 31 IIP) Captain Prank T. Courtney, British aviator, who is preparing for a trans-Atlantic flight to New York, will not at- tempt the flight before Sunday, says a message received from him at the Baldonncl air station In County Dublin, DOCTORS SAY BOTH IN PINK OF CONDITION Dempsey Tips Scales at 194 1-2, with Opponent Weighing 196 Pounds Weather Ideal for Fight Attracting More than 80,000 Spectators New York, July 21 0P) JacSt Dempsey scaled 194, pounds at the official weighing-ln before the New York state athletic commission at Madison Square Garden this after noon. Jack Sharkey appeared for his turn on the scales a few minutes after Dempsey left. The Boston boxer scaled 196. The two did noc meet, Dempsey leaving the Garden before Sharkey arrived. Physicians making the lormai medical examinations, required by the boxing commission, pronounced both men in perfect condition. Demnsev was in good spirits aa he disrobed for the weight test aud declared himself "right." Sharkey, the confident, told news papermen again, "I will certainly, knock Dempsey out." WEATHER PERFECT New York. July 21 Prover bial "Tex Rickard weather" for the embroglio between Dempsey and Sharkey tonight, was promised this forenoon. The sun Drone mrougn a dense fog at 8 a. m., and the weather sharps predicted tne noraes of fight fans would be able to en joy the encounter without worrying about the weather. Rickard has had uncanny luck with the elements for his open air shows except the memorable de luge In Philadelphia, last Septem ber, when Dempsey lost his crown ODDS FAVOR SHARKEY New York, July 21 (P More than 80.000 persons from all over the United States, will gather in the Yankee Stadium tonight to watch Jack Dempsey, of Los An geles, stake his hitting power against the youth, speed and ring Hollywood, Cal., July 21 Pi- Archduke Leopold of Austria, today began his work as a film extra to raise funds for his return to Hun gary, and duel to which he chal lenges Count Laszlo Szechenyl, Hun garian minister to the United States, The duel is sought by Leopold to avenge an insult which he said the minister hurled at him two weeks ago when embassy declared "tact less," the archdukes request that it handle a loan which he was at tempting to float. Count Szechenyl is now in Europe. The archduke wants to follow him to fight the duel. But it Is a case, according to I his secretary, Alfred Ncuhardt, of the spirit being willing, even eager, but the pocketbook woefully weak. Beginning his day at 8 o clock in the morning, tthe noble actor re hearsed and toiled and perspired before the camera all day. His faithful secretary mopped the royal brow after each camera shot. Since the bit played by the arch duke, that of a German army cap tain called for a crap of hair, and the archduke, although young, is approaching baldness, a toupee was pasted upon his pate. One difficulty arose. The arch- due was required to salute a gen eral. Leopold could not register the correct salute. "Excuse please," he apologized. "I have never salute. In my country everybody they salute me, but I do not salute." lCut,:iniif-,fi on HhiteStxi Washington, July 21 P) Rail roads were conditionally authoriz ed by the interstate commerce com mission today to establish norm and south steamship competition, and at the same time to maintain higher rates to intermediate points. The permission will allow classi fied rates between San Francisco and Portland to be fixed at 80 cents for fifth class shipments with proportionate amounts for inter mediate classes. At the same time. the roads mav not charee to Inter mediate points between Portland San Francisco rates that are more than 100 per cent in excess of the rates to the seaports. On commodities between the Cali fornia port and the Oregon Jort, the roads were permitted to make rate 10 cents per 100 pounds higher than rates made by standard steam er lines. On the commodity traffic, the commission likewise ruled that the Intermediate points must be giv en rates that are not exceeded by the port rates by more than 104 per cent. Salem Banking Assets Show 10 Percent Gain Over Figures of 1926 Banking assets in the city of Sa lem have increased 10.4 per cent since July 1, 1926. according to the report on financial conditions In the city for the quarter which end ed July 1, 1027. Total assets of Salems four banks a year ago were $11,733,641 compared to the $12,954,836 shown this year, a net Increase of $1,221,195 This increase Is exclusive of the First National bank building which is not the property of the bank itself More than 25 per cent of the in crease was due to the jump In sav ings accounts which totaled $5, 436,727 this year against the $5, 179,382 in 1920, a gain of $.160,850, Back bank in the city reported a gain in this classitlcation ranging from $37,000 to $236,000. Checking deposits showed a net increase ot $257,345 but the gain was not Uniterm, one banking house reporting a loss of $70,000 which however, was picked up in savings accounts, a more desirable type ot asset for any financial institution. Other gains were covered In the improvements in banking houses, official deposits by state, county and city and other minor fluctua tions. Authorized reports Indicate that the agricultural situation In the Marion-Polk district is improving rapidly A large percentage ol the increases shown in each of the four Elht)