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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Dec. 27, 1929)
CIRCULATION Dally anrai dUiriDuOoo for tht moo lb u4JOK Novembci 80. 1039 10,226 Avaratt daili oet paid 064? ftlembtt Audit Bureau of Circulation FA IK tonight and Saturday but with fogs. Not much change in temperature. Gentle v aria be winds. journal Local: max. 51; mln. 31; rain M; river 0.8 feet; cloudy, calm. 42nd YEAR, No. 308 Entered aa aecood claaa matter at Salem. Oregon SALEM, OREGON, FRIDAY, DECEMBER 27, 1929 PRICE THREE CENTS O TRMN8 AND NKWS STAND FIVE CKNTS era WW 1 x3 nuqii on am mm agitata MRS OIu SCHOOLHOUSE OF 01 ROOM HELD OBSOLETE Oregon Teachers Hear Experts Discuss, Con demn Pioneer Schools Need of Better System Of School Financing For Oregon Stressed Good Evening! Sips for Supper By DON UPJOHN 'Ve are Interested In the Intima tion In the Statesman that city of ficials are soon due for a shakeup, as soon as the council caucuses un der the Statesman domination. The Statesman ought to know. There's one savins lace in the situation. The charter requires that city officials mur be residents of Salem. So while the Statesman may Import Corvallis ideas in run ning me city it won t uo hoic 10 Import Corvallis people until it brings them over and naturalizes them. By the time they are natural ized no doubt the people will be tired of Statesman domination and that wiU be that. Portland (ffr The one room school house, last survivor of the pioneer days in American education, furn ished a pivotal point for two speak ers at Friday's session of the Ore gon State Teacher's association meeting here. The little red school house Is all right as long as it doesn't pack too many grades within its walls, said Dr. J. Cayse Morrison, assistant commissioner of elementary educa tion of New York. Over-consOllda-tion, especially in rural districts, has proven unpopulaf in New York, he said. The one room school fitted the stringent pioneer times admirably but now it is as antiquated as the covered wagon. Dr. George Willard Prazier, president of Colorado State Teachers' college, said. He declared the modern reformers of the cur riculum are as much pioneers as any of Oregon's first settlers. Con solidation of rural districts, with intellegent supervision, -was urged. ""(Concluded on ' page 10. column 4)"" HISTORIC ROOM OF WHITE HOUSE USED BYCABINET Washington m The president's cabinet met Friday in an atmos phere replete with the early history of the American republic. Because the executive offices of the presi dent were destroyed by fire Chirst mas eve members of the cabinet gathered In the study where Lincoln signed the emancipation proclama tion and sat around the table used bv President Adams and his cabinet In the early oays ol the White House. Four members of the cabinet were seated In chairs used by President Lincoln's cabinet during the days of the civil war. At one end of the room near the fire place was the old desk at which Lincoln signed the proclamation which ended slav ery in the United States. Over the mantle above the fire place was a steel engraving depict ing Lincoln and members of his cabinet. It is one cf the famous pic tures having to do with the Lincoln Administration. Friday's cabinet meeting was tho first held In the main building of the White House in a quarter of a century. The destroyed executive of fices were built early in the admin istration of President Koosevelt. Meetings of the cabinet after Fri day will be held In a conference room adjoining President Hoovers office in the state and war building. But It will be interesting to see Just who the Statesman has mark ed out for the ax. And who It has lined up for the Jobs. FOREIGNERS IN CHINA SUBJECT TO LOCAL LAW Official Mandate Declar es Abolition of Extra Territorlality in China Due to the. new management's lack of familiarity with local people we offer for the Statesman s con sideration a prospective slate for its new city officers which we be lieve would meet with the delighted response from the people generally accorder Statesman suggestions. The suggested slate follows: City Engineer Carle Abrams. Street Commissioner Paul Hend- ricks. Sanitary Inspector Ralph Kletz- ing. City Attorney C. A. Sprague. Fire Chief Ralph Curtis. Incinerator Superintendent Rod ney Alden. Dog Catcher Gus Htxson. Chief of Police Ben West. Police Matron Sheldon F. Back- ett. Now, if the States man doesn't adopt our suggestions' and Its administration falls down It won't be 'our fault. We will have done the best we could to help It out Sfo Semper Marin-nis. Of course, a few of the faithful had to be overlooked, but it may be Jobs can be created to take care of the rest of the boys before the new regime finds itself out. COLD FOLLOWED Goes Into Effect January 1 New Code To Gov ern Law Suits COUNTY DEPOSITS BS SB 88 U . KS K8 H KB Non TaxPayingBanks m JJ8 - KS ' KB 88 3 83 83 NOW TOTAL $825,398 An interesting situation regarding deposits of county funds is revealed in the books of County Treasurer Drager showing the following approximate condition: County funds on deposits in national banks of the county total $825,398.56. County deposits in state banks of the county total ins.tBOJU. meF tax records in the courthouse indl $190,000,000 INCOME TAXES 1928 REFUNDED Carnegie Company Gets Rebate of 25 Millions Others Get Less Nanking, China WV-The central political council in emergency meet ing Friday decided to issue an 01 flclal mandate January 1 declaring abolition of extra-terrltorlallty in China. The mandate will be divided in two parts. The first will declare that foreigners living In China shall In the future be subject to the laws of the central government and local authorities. The second will declare immediate promulgation of a code governing law suits and involving Chinese and foreigners. Extra territoriality Is me term applied to the privilege enjoyed by persons and properties ol many lor. elgners in China to be tried in courts of their own nationality. There have in all been 21 coun tries enjoying extra territoriality In China under treaties, although the status of several of these countries has been changed by developments of the past two years. Germany, Bolivia, Persia and Chile and more recently Soviet Rus- ("concluded on page 10, column 3) cate that the national banks with one exception haven't paid taxes on their capital stock lor two years and a half. The records Indicate that the state banks have paid such taxes. In other words, the banks that have paid their taxes up to date are car rying $647,363.18 less In deposits of county funds than the Institutions which quit paying on their capital stock because of a court decision. It Is pointed out by those inter ested that while all of the banks have had equal enjoyment from the protection of the laws of the state, that the ones who have done most (Concluded on page 11. column 5) WORKAT DESK Fred R. Gouuard, Klamath coun ty Judge, has sent a telegraphic re ouest to Governor Norblad for a date to discuss a matter which the telegram says is "of mutual Interest to the state and to Kljmatli coun ty." The message gives no further hint of the nature of the subject. Oovernor Norblad arrived here Friday and went to work at his desk. He found a huge stack of letters and telegrams on his desk pertaining to numerous subjects. A Medford attorney has requested a hearing before the governor Sat urday morning in behalf of Robert A. Wilson, who is wanted in Cat iomia on a charge of kidnaping his child. The governor's office Thursday is sued a requisition for the extradi tion from California of Frank An derson who is wanted at Eugene on a statutory charge. Kansas City tm Rushing from one extreme to another, the weather gods of the lower middle west have replaced tne blizzard conditions oi last week with record high temper atures for this season. Throughout the southern half of the central states the mercury hung well up in the 50s. Thursday and In Arkansas, Texas. Kansas and Okla homa, visited only a few days ago by zero temperatures, the readings were as high as 70 degrees. St. Joseph, Mo., with 60 degrees, saw a record of at least 19 years shattered fcr that date. Maximums in Kansas City and St Louis were" S3, Wichita and Oklaho ma City 62. and Fort Worth 70. MATHEMATICIANS TO HOLD EUGENE SESSION Bethlehem. Pa. iiey The American Mathematical society began its tech nical sessions here Friday after dis posing of preliminary business dur ins the Initial mcctinz Thursday. Professor E. R. Hedrlck, of the University of CaKiomia, was nom lnated for president. Decision was reached to hold the annual summer meeting of the or ganization at Bi o i n university In 1910 and anoth3r meeting In June, 1930. at the University of Oregon. GAMBLERS WIN MILLIONS FROM GOULD'S CASINO Nice. France OP) Two powerful crnmhitnff svndicates were waging perhaps the greatest gambling duel of all time Friday wimin me pala tal halls of Frank Jay Gould's 15,000,000 Casino overlooking the Mediterranean. A French and British combina tion and a Greek syndicate, headed by M. Zographos "the coldest little man who ever dealt a hand of bac- carat." started plunging against the Gould millions Christmas night. Within 24 hours of continuous play they had taken the bank for 2,000,- 000 francs. Gould was summoned hurriedly from his chateau near Paris, where he was spending Christmas with his famllv. Oould met the cnauenge v nis fortune wiUi a sportsman's gesture and ordered the minimum stakes ncreased from 100 francs to live thousand francs ($200) Immediately after his arrival. The gamblers' war stimulated play so that nearly 50.ooo.ooo irancs m, 030.000) passed over the tables with in the last few days. Through the stimulated Play. Gould reaped fortune and it was with that he met the challenge of the syndicates. The profits of four days far over shadowed his one night loss. News of the progress of the tense battle of luck and skill within the cror.ded baccarat and ruolette rooms reached trie hundreds who gathered outside. Within two men and two women, representatives of the syndicates, were playing contin uously. Portland. (IP) Willard Walter. 22. Corvallis, was Injured late last night in an automobile accident here. He was riding in a machine driven by James Clock, Portland Foch Warned Against Early Evacuation Of Rh ineland In Letter FEAR OF DEATH CAUSED DECLINE OF PANTAGES Los Aneeles. (IP) A fear of death and not heart trouble has caused the physical decline of Alexander Pantages, mulUmlllionairo show man it was tesUtled Friday at the hpArinsr bv which he opea. to no- tain his freedom from Jail on ball. The treat fear began its work when Pantages heard himself con victed of assaulting 17 year oia Eunice Pringle, a dancer, Dr. Char les W. Decker, state's physician said. Dr. Decker testified yesterday that while Pantages had a leaky heart that the condition was not serious and that while the million aire undoubtedly would prefer to be free that further incarceration was not at all likely o bring on death. Physicians testifying lor van tages said his condition was ser ious and that unless he gained freedom he could not have ade quate treatment for the heart aliment. Pantages asked to be turned loose on bail pending his appeal to the conviction. He is under sen tence of from 1 to 15 years in San Quentin. "Panteges spoke freely witn me when I first examined rum. Dr. Decker said. "He told me he feared death. He spoke of the terrible predicament In which he found himself. 'I don e think his heart trouble is sufficient to call for his release from Jail," Dr: Decker said under cross examination Irom Pantages attorneys. i INDIASEEKING INDEPENDENCE Calcutta, India (LP) The move to have the Indian national congress meeting at Lahore declare com plete Independence of India from Great Britain gained headway Fri The working committee of tne congress passed, without change, Mahatma Gandhi's resolution de fining Swaraj (the home rule gov ernment) as "complete indepen dence" and advocating a boycott of the Indian legislators. Amendments extending the boy cott to law courts and schools were tabled for the formal opening ol the sessions of the congress Sun The tentative draft of a declara tion of independence has been drawn and is expected to be acted on by the congress before January 1. At that time, the Indian ulti matum demanding definite promise of dominion status and amnesty for political prisoners, will expire. Bri tain has refused to accede to the demands. ESCAPED CON FROM AUBURN UNDER ARREST Los Angeles (LP) A man held here for two weeks on auto theft charg es was Identified Friday as Joseph Caprico, wanted In New York state on murder counts arising from the sensational break at Auburn prison last July. Caprico was one of lour convicis who succeeded In gaining freedom in the riot which caused the deaths of prisoners and guards. He will be returned east immediately, It was id. According to police, it was Caprl- co's determined efforts to gain his release from the local jail that led to his identification. When he was arrested on the au tomobile stealing count here he said his name was Joseph Olivia. Once In jail he began such a de termined attempt to gain his free dom on ball that he aroused the suspicion ol detectives. After he sent telegrams to an parts oi me country asking for money police notified the Sacramento bureau of identifica tion. Subsequently it was determin ed that he was Caprico, through the Washington D. C. bureau of Identification. At the time Caprico took part In the Auburn break he was serving a sentence for robbery following his conviction In Rochester, N. Y. Caprico was one of four men who succeeded in escaping during the rliot. George Small was captured In Brooklyn, Steve Pawlak was return. ed to Auburn and was killed in the second riot there and Arthur Barry is still at large. RATE EXPERTS SAY COMPANY PAID TOO MUCH Errors in Tax Collections Adjusted-Every State In Union Affected WonderLake In Center Of Australia New York iJP) A dispatch to the New York Times from Adelaide, Australia, Friday said that Cecil Madigan, Australian explorer, had verified existence of a vast salt lake which may be one of the wonders of the world. The lake Is known as Lake Eyre, and Is located In the middle of the sun-baked desert of central Austra lia. Mr. Madigan believes the lake to contain limitless salt, with at leusi, d,uuu,uuu,uuu buns in uie uurtii- em part alone. Should chemical analysis show potash in the salt, the Times said, the lake woud be found to be enor mously valuable. The explorer said (Concluded on page 10. column 1) Washington, 7P (Sometimes, even that master or antnmeticai calculation, the Unitea States treasury, makes mistakes; but when it does, it admits them. Friday It made known an error of $190,000,000 In the collection of last year's taxes and, in its annual an nouncement of tax refunds, set forth that restitution in amounts ranging upward to $25,000,000 was being mad eto corporations and In dividuals, including John D. Rocke feller, the Carnegie Steel company and Mary Plckford. Mr. Rockefeller, one of tne world s richest men, rftrjved $157,227; Miss Plckford, $10,161; the Carnegie company $25,847,249, the largest single refund listed; the William Waldorf Astor trust Astor $6,456. 829 and Daniel Guggenheim of New York $8,911. Hundreds of refunds, all of $500 or more, were listed, - Including beneficiaries in evermy state of the Union and Hawaii. Among the western states. Cali fornia wlthits wealthy motlon "(Concluded on page 10. column 8) MANHUNT FOR BANDIT SLAYERS OF BANKER ON Smith's Grove. Ky. (m Embat tled southern Kentucky farmers and officers, incensed by the killing of country bank president by three bank bandits, Friday guarded high ways, bridRcs and miles of railway track, and peered Into woods and caves for the slayers of J. Robert Klrby, 45. Although It was believed that one or more of the men had been wounded and two stolen automo biles the bandits used and a portion of the bank loot had been recovered, the posses, comprised of armed men who at one time numbered 800 or 1,000 men, had been balked after a search of all day and night. The aid of Tennessee officers was CUSTOM AGENTS UNDER PROBE FOR KILLING YOUTH Buffalo, N. Y. ' (IP Two const guardsmen stood Idle In front of a barge terminal building while Eu gene P. Downey, Jr., suspected rum runner, was slowly dying from loss or blood, Stephen Crotty, Buffalo city police lieutenant, testified Fri day at the Inquest into Downey's death. Downey, son of a police lieuten ant, died after he was shot by a coast guard crew. The building, where the two coast guardsmen stood, he said, was at least 80 feet from the dock to which the alleged rum smuggling craft was tied. Crotty testified he had gone to the dock after a call from coast guardsmen that a man had been wounded. No one was near the boat, he said, when he arrived. The policeman said he then called a fire truck and ambulance and by tying a rope around Downey it was then possible to haul the wounded man from the boat to the dock platform. He said that policeman, fireman, and coast guardsmen assisted him when the fire truck arrived. The three under arrest were In the city court room where the In quest was held but were not heard. On motion of the federal attorney. tne inquest was adjourned until Saturday. CLEAN UP DUE IN PERSONNEL OF DRY REGIME Resignation of Mellon Demanded as First Step in Ending Politics Law Probers to Make Report Early in New Year Asking Changes Portland tpn Kenneth Harlan, rate expert retained by the city of Portland, Friday torn wie puunv; , ..-.-. ,:..,,, service commission investigating invoked late Thursday night after rates of the Portland Electric Power company, that since 1916 the pub lic had paid the power .company $7,398,054, or almost 100 per cent, on the vested water rights, over head on land above the original cost, and other intangible items. These items, the city contends, should not be included in the oper ating property of tile utility. Har an's estimate of the amount earned on the $7,704,214 which he declares should be eliminated was based on an eight per cent return. Power rates are based in part upon valu ation of the utility. . Projecting the present rate basis into the future, Harlan estimated that by 1950 the power company would have realised $20,000,000 on what the city calls "these fictitious values" allowed by the public serv ice commission in fixing the rate basis In 1918. The city is attacking the $7,704,' 214 alleged excess valuation In the electric company's, property, and declares that there Is also an ex cess of $5,640,950 in similar Items included in the street railways and Interurban properties operated by the company. HYDROPLANE FALLS WITH NINE ABOARD London (IP) Lloyd's correspond ent at the Dardanelles has reported the loss of an Italian hydroplane running from Brindul to Constanti nople, with nine passengers aboard. Steamers sent to the spot where the plane was believed to have fallen, south of Strati Il?.nd. returned without having found a ti ase of the plane. Faris AP) Secret warning by the late Marshal Foch , ..-.-- n t 1 1 1-1 ol-'if 11.1 f infl AT Dip Rhineland was revealed in the French chamber of deputies and precipitated a parha- Briand.' mentory storm. Artstide former minister, expressd amaze ment iha'. he had known nothing of the dorument. The marshals warning was made in a note to President Dotimcrgue and Premier Polncare In October 1926. M. Briand reproached M. Relbel. former under-sferctary of state for the liberated recions. for reading the note. He said It created a "sorry nation." Marshal Forh's letter said that Oe:many daily was becoming a more populous and stronger "van quished nation which wishes re venTC." "Guided by a temperament dif ferent from ours, for her might ts rUtht." hs wrote. "She remains a redoubtable neighbor and pcare will be maintained only by the rik she runs In revenge." The letter declared that the Rhlneland occupation guaranteed France's security but added that lien the French troops return to their territory France would find (Concluded oa'page 11, column 7) WEDDING BELLS END 50 YEARS COURTING Moberly. Mo. iPt After a court ship of more than half a century. satrtlng In school days, Mr. and Mrs. Robert Sprinkle are on their hon eymoon. Bprlnke is a wealthy ranch er at Chinook. Mont. Alice Hayden retired after operating a millinery store for yean. Each Is in the seven ties. They corresponded and Sprln- ONE IS KILLED IN GUN FIGHT officers at Scottsville, 20 miles south of the robbery and ehooting, had pursued two men In an auto mobile toward Gallatin, Tenn, Bcottevllle officers were Informed one of the men had been shot in the shoulder, Kirfty, president of the Farmers' bank of Smith's Grove, was shot and killed early Thursday as he and Darty of others tried to halt the bandit's car about five miles north of here. The three desperadoes had robbed the Oakland bank, at Oakland, near here, of between $1. 000 and (1,500 and Klrby had been notified by telephone. The bandits had been firtd on also at Oakland. A few miles after the battle with the posse near here, they abandoned their car and In It weapons and part of the bank loot as found. EI Paso, Tex MV-Tilts city faces a more or less dry New Year's day as a result of a gun battle between alleged rum runners and border patrolmen which cost the life of one man and the freedom of another. An unidentified Mexican, about 25, was slain cs he rose from oarncaac ana another man was captured when patrolmen surprised a gang of eight or ten men at tempting to carry liquor across the river about five blocks from the city's business district. The smug glers took refuge behind an earth en wall around an oil storage tank and put up a strong battle. After one of them was slain, however, they retreated across the river, protected by rifle fire from the Mexican side. Forty gallons of liquor were seiz ed. The Christmas supply of whisky here has been seriously curtailed by a Mexican gang war across the Rio Grande and officers believe smugglers catering to the New Washington (JP) The resignation of Secretary Mellon was demanded as the first step of a "clean-up" of prohibition enforcement Friday by Senator Norris, of Nebraska, a repubican dry, who Joined with Sen a tor Borah, republican, Idaho, In condemning the personnel ot tba enforcement service. The Nebraskan blamed "politics" In the enforcement service for what he Ascribed as the "failure" of en forcement." When asked where ha would start In re-organizing, he re plied quickly "with Andrew W. Mel lon." ... "I don't say the law Is not en forced everywhere," said Norris, who is chairman of the Judiciary com mittee. "But I do say It is not gen erally enforced and I think there is evidence that the politicians are meddling too much. I don't think Andrew Mellon, who is the chief en forcement officer, is in sympathy with the law. I don't demand pro hblition cranks. "In fact, I don't want any cranks In the service but I want an admin- Concludtd"onpaitre TfTcolumn 7)"" CAMPBELL OF SPOKANE QUITS COMMISSION Washington (ff) Johnston B. Campbell, member of the interstate commerce commission since 1921, has tendered his resignation to -President Hoover, and will retire from office as soon as a successor has been selected. Commissioner Campbell, whose residence is in Spokane, Wash., will return to the practice of law. He was selected for Ilia commission ser vice during the Hardin? administra tion, having been particularly in dorsed by farm organizations of the country during the more active per iod of controversy over rail rates on agricultural commodities. In view of the general attempt to make the commission's membership territorial, it is exacted that Pres ident Hoover will be faced with a number of candidates from the northwestern quarter cf the country whose claims for the Campbell va cancy will be pressed, though time has not yet allowed these to develop. The political balance on the com mission is expected to require that the new appoint re, whoever he is, be aligned with the republican party. DR. SCKUMAN QUITSiSENVOY Berlin P( Dr. Jacob Oould Schurman, American ambassador to Germany, has received word from the state department that his resig nation as ambassador has been ac cepted. Ambassador Schurman told the Associated Press that he had been expecting his resignation to go through for some time and In an ticipation his family had left Ber lin In September and resumed their residence in New. York. "I rannot speak too highly of the cordiality of the Oerman govern ment and people who have facili tated my work here in every manner kle visited regularly since school possible." he said. "I shall always days. The reason for the deferred look back upon my service in uer- marrlage 1 a secret, I manv with the greatest satisfaction, SOVIET OFFERS' FLIERS' REWARD Moscow OP) A government re- card of 2000 rubles will be paid to nv person indicating whereabouts of the American aviators, Carl Ben Eielson and Earl Borland, or their plane. They have been missing north of Siberia for the last six weeks-A gold ruble Is worth about 50 cents. Soviet Russian aviation authori ties Thursday night broadcast an appeal to the population of the northeastern coast of Siberia, par ticularly those residing near North Cape, to Join In the search for the missing Americans. Previous announcement by the foreign office said three planes, one piloted by the ace, Semyon Shesta kov, wre being sent to the vicinity of North Cape to search for the men. JUDGMENT GIVEN TO GENE TUNNEY Bridgepore, Conn. UP) Judgment In favor of James J. Gene) Tun ney, former heavyweight boxing champion of the world, was given in superior court Friday in the $500. 000 breach of promise uit filed Year's trade will be discouraged by against him by Mrs. Katherine Kln( the battle Thursday night. Fogarty, Contracted To Pay $20,000 For Slaying Of Two Gangsters Now York (UP) Ciro Terranova, d;tpxr Italian "arti choke kinK," of the Bronx, who for personal reasons uses an armored limousine, stood accused Friday of contracting with Chicago assassin for the murder HI ( KAROOS WIN Portland IIP) Portland defeated Victoria. 3 to J, In a Pacific coast ice hoc-key game here Thursday niKht after playing five minutes and It seconds of an overtime period. of Frankie Yale and Frank Marlow, New York racketeer chiefs. The accusations were made Thursday by laspector Joseph Don ovan, chief of the police criminal detection bureau, who added that Terranova has done the unorthodox thing of "welching" on his agree ment. Soon after Donovan had finished his testimony at the police depart ment trial of Patrolman Arthur C. Johnson, Police Commissioner Oro- ver A. Whalen left for Chicago, presumably to Investigate certain angles of the murders listed among New Yorks unsolved crimes. Donovan, who said he had re ceived his information from the special police secret service squad, a Whalen innovation, alleged that a dinner, presumably given in honor ot Magistrate Albert H. Vitale, was nothing more than an occasion to rob an unsuspecting Chicago gangs ter of the murder contract. Terranova, who la known as the "artichoke king." because of his dominance of ths trade in this tConcluded""on page "11. column 71