PAGE FOUR
CapitalJtJournal
Salem, Oregon ;':''
Established Much 1. 1181
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Byron
The Secret Session
Franklin T. Griffith, president of the Northwest Public
Service Corporation (Pepco) and Guy W. Talbot, president
of the Northwestern Electric Co., admit having had a secret
conference at Portland Saturday with Herbert t leishhacker,
the San Francisco power magnate and Julius Meier, chain
banker, merchant prince and independent candidate for gov
ernor, but of course no politics was discussed and the meet
ing just a coincidence.
It is admitted that Mr. Fleishhacker made the trip in
his private car to meet the utility heads by prearrangement
but Mr. Meier's opportune appearance was just an accident.
Of course he knew nothing about the meeting, just hap
pened to butt in. It's a likely story.
In all probability though, Mr. Fleishhacker, called the
meeting to reassure the power chiefs that they had nothing
to fear in the way of power legislation from his banking
partner, Mr. Meier, in case of his election, and that his cam
paign attacks on the power interests were merely to secure
votes as the only way he could be elected was by riding the
wave of power hysteria, and summoned Mr. Meier to con
firm his statements. Otherwise he wouldn't have known of
the meeting.
Mr. Meier's power program consists in generalities. He
is not specific And in case of election he will have an alibi,
and can blame the legislature. Therefore his power promises
like his Drotestations of brotherly love for the people, are
but sounding brass and tinkling cymbal to tickle the ears of
the electorate and secure their votes.
Mr. Fleishhacker knows all this and that the power is
sue is simply a red herring. His
an attempt to reorganize irrigation districts and refinance
them at state expense so that
his losses in these securities.,
Who Are the Slickers?
By a vote of six to six, the city council defeated the or
dinance providing ior a ballot November 4 on a charter
amendment for the authorization of a $5,000,000 bond issue
to put the municipality into the electric light and power
business.
It would be interesting to know who were the originat
ors of this wild-cat scheme of frenzied finance, and who
initiated the proposal and drew up the specifier ;ions. The
plan bears all the ear-marks of the work of 'some financial
slickers whose attractive bait was taken, hook, line and
sinker, by the confiding councilmen, who nttcmped to rush
the program through without proper consideration.
Five million dollars is a huge sum, much more than
99.99 percent of the people ever see, too large to be com
prehended by many. Some of these same councilmen will
debate for hours over a $50 expense, for they know what
$50 is, but they sanction, without batting an eye, a ?5,000,
000 expenditure, and that without any safeguards, with the
door left wide open for graft.
If the city of Salem wants to go into the power business,
this is the wrong way to go about; it. We should know first
what we are buying, what the cost will be, what power can
be developed, and how a market can be found for it. Even
private power companies do not plunge in development until
thoroughly informed on all points.
The serious consideration of such a proposal raises the
question of the business capacity of its sponsors. Who would
want to turn over $5,000,000 for their expenditure? And
who are the slickers, the real niggers in the municipal power
pile?
New York G. O. P. Wet
The waning strength of
strated by the adoption of a wet platform by the Iew lone
Kepublican convention, demanding the repeal of the 18th
Amendment, preliminary to nominating-a wet candidate,
probably United States District Attorney Charles H. Tuttle,
who recently resigned declaring the dry law unenforciblc
and a failure.
This is the first time the New York Republicans have
mustered courage enough to defy the dictation of the Anti
Saloon League. Hitherto they hive tried to play the game
both ways and lost out. They have straddled the issue or
have run wet candidates on dry platforms. At last, how
ever, they have taken a courageous stand.
The adoption of a wet platform and the nomination of
a wet cadidate will in all probability mean a bolt of drys and
the nomination of an independent that will mean the loss
of 100,000 Republican upstate votes. But it will win as
many votes downstate and the party will be in position to
capitalize the Tammany scandals, and have a good chance
to win the governorship, for with both parties wet, the is
sue will be sidetracked.
DISCHARGED GUARDS
REINSTATED, DORAN
(Continued from page 1)
force ment presupposes a vigilant, at
tentive force ol dry agents.
Surely then, laxity gives opportun.
lty lor lawbreaking. and Is sufficient
cause for dismissal.
These fifteen men had been set
to watch breweries which had per
mit to make real beer, to be de
alcoholtzed Into near beer. They
were supposed to prevent shipment
of real beer.
As I have related, this method of
supervision inside the breweries had
been successful in 1928, so successful
that Mr. Lowman had ordered me to
withdraw my men and slake the
voters' thirst. Strangely enough, af
ter all the objection that had been
raised about this system, on March
6, 1929, Commissioner Doran wrote
Ine that "In my Judgment It is Im
portant that they (the breweries) all
be guarded internally."
But an 13 the system waa Inef
fective, and the etty had plenty af
beer. The reason was that the morale
ol my brewery lore had been com-,
Editor and Publisher
and Yamhill counties, one month M
12.35: 1 ear KM. Else woe re 60c a
In advance.
entitled to the use tor publication
not otherwise credited In this paper
real interest probably lies in
the taxpayers will mane good
prohibition is again demon
pletely shattered, largely because OS
the troubles with Washington.
NEW INSPECTOR O. K . PIPE
I believe their morale was broken
down mostly by an Incident at the
Phoenix Cereal Beverage company, a
large brewery at 25th street and 10th
avenue. In the spring of 1829. Two
of my men discovered a mysterious
pipe behind the beer vats there, and
we thought we had at last discov
ered the means by which beer was
coming out of the brewery.
At this time a brewery Inspector
was detailed to me from Washing
ton to help In the Investigation, and
naturally I told him of this plus.
After an Inspection he reported to
me that the pipe In question was not
at all as my Inspectors had reported
it. and there could be nothing out
of the way with It. I tlien sent my
own men to look at this pipe, and
they reported that since the advent
of the Inspector from Washington
it had been completely changed.
You could hardly expect my men
to remain conscientious under such
conditions.
After the very wet beer season of
1929, on the momlng of Saturday,
Sept. 28, I sent special Investigators
to each of the cereal beverage plants
pick up and bring direct to me with
out any Intercommunication every
THE
guard as he came out of the brew.
ery.
I personally Interviewed every one
of the men, but was unable to prove
anything on which I could base
definite charge of corruption.
At any rate, I had aufflcient evi
dence of laxity. I transferred the
men to other work, and called Spe
cial Inspector Conwell from Wash
ington to Investigate. He recom
mended the suspension of fifteen
men, Including the chief of my
brewery section, and later recom
mended their dismissal.
The evidence was that the agents
had failed to report the disappear
ance of empty beer kegs during the
night, and that the company did not
report shipments of near beer in
these kegs. One agent did report
disappearance of kegs, which showed
the others up. One night in Septem
ber, agents watching the Interboro
Beverage company in Brooklyn saw
nine heavily loaded trucks drive out
of the warehouse yard adjoining it.
Two guards were supposed to be in
side the brewery at this time.
Also they were supposed to take
samples of each shipment of near
beer, to be sent to our headquarters.
They had neglected to bring samples
to headquarters, and in some cases
had let the samples remain in the
breweries for a month.
ALL EMPLOYED COUNSEL
After the fifteen were dismissed.
they all employed counsel, and on
one occasion ten of them went to
V'jshlngton to plead tbelr case.
But finally on Feb. 22, 1930, I re
ceived a telegram -from Commission
er Dornn that all had been removed
from the service. I struck thelr
rrames from the pay roll, where they
had remained in suspended status.
A little later Dr. Doran telephoned
anc told me to disregard the wire,
and I told him I hofl already remov
ed the men.
All right, let the matter stand,"
he said.
On Feb. 27 Harry F. Ansllnger,
acting commissioner in Doran's ab
sence, wrote me with Lowman's ap
proval that three of the men should
be reinstated. On reo. 28 a telegram
ordered me to reinstate the three at
once.
I went to Washington and dis
cussed the matter with Ansllnger
and with Billard. chief of personnel.
and It developed that Doran had
never told Billard that the dismissal
telegram had been acted upon. I
explained that now the men were
out, and I had no authority to ap
point them to the service. Washing
ton bad to do It, U It were to be
done.
I arrived home March 4 and on
that day received a letter from Do
ran under date of Feb. M. approved
bv Lowman. "by direction of the
Secretary of the Treasury," Feb. 27.
withdrawing the telegram oi reo. xi
and "confirming verbal Instructions"
not to drop the men.
REINSTATED BY WASHINGTON
Three men finally were reinstated
by order of Washington, dated
March 17, and the outers anortiy
thereafter.
One reason I had fought the re
instatement was that It might jeo
pardise the revocation of the permits
of the Phoenix and Interboro brew
eries, which I had refused to renew
last January.
The Phoenix Cereal Beverage
company was always a source of
trouble to me.
Supervision from the outside was
impossible. My men couldn't even
rent a room from which activities
could be observed; the whole neigh
borhood seemed In league with the
brewery. Time and again my agents
would be asked by policemen why
they were loitering around and If
they refused to divulge their Iden
tity would be taken to the police
station and compelled to do so.
I was accosted by police In this
way myself. But It was only on
certain nights the police were so
vigilant; other nights you could
loiter as much as you pleased. I
tried In every way to get my agents
near the brewery unobserved.
One night I put a dozen agents
Inside a truck and had It stop at
the comer of 23rd street and 10th
avenue, as though It had broken
down. From that point they could
see the Intersection of 2Stu street
where beer would pass. I watched
the truck irom my car, (tin lurtner
CAPITAL -JOURNAL,
"FEELS LIKE A WET
Coajrlslit Tram ruUliaUia Cam
down the street. It waited all night,
but nothing happened.
AGENTS KEPT WAITING .
By the terms of the permits, a
prohibition agent most have im
mediate access to a brewery, but on
many occasions it was hours before
they were admitted. On one oc
casion I, myself, waa kept waiting
an hour and a half. There was
plenty of time to clean things up,
if there were any irregularities.
There were repeated disappear
ances of empty kegs daring the
night, when the brewery was (ap
posed to be shut down; but especial
ly Important was a warehouse, own
ed by the same Interests as the
brewery, next door with a frontage
on West 28th street. Several doors
connected the warehouse with the
brewery, but my men were never
admitted to the warehouse.
The doors were always kept lock
ed on the warehouse side, In viola
tion of the terms of the permit,
and the brewery claimed that they
were a necessary fire protection.
The New York City fire department
supported this necessity, though I
never could see what value the
doors were as fire exits If locked
on the warehouse side ,
That my feeling about the ware
house was correct was shown last
August 14 when a raid was made
and raiders ran Into what the news
papers called "an Arabian Nights'
maze of secret passages, hidden
doors and blind stairways," and, ac
cording to the newspapers, found in
a secret cavern under the ware
house a complete beer plant with
S.000 gallons a day capacity.
WORK CALLED FUTILE
That this brewery (and other
breweries using the same tactics)
should operate so long Is a graphic
circumstance In the futility of pro
hibition enforcement. You would
think that Washington would sup
port strenuously any surveillance of
such a place.
On February 27, 1928, Just after I
had put Internal guards back in
this brewery, William F. Donnelly,
president of the brewery and ware
house companies, came to my of
fice and protested. He said he
thought the guards might have
been placed there at the instance
of some of his competitors to em
barrass him.
I told him It was because he had
made structural changes in his
plant without consulting me, and
thai I was thinking of revoking the
permit.
A week later Dr. Doran tele
phoned me from Washington.
. "Have you agents inside the In-
Vetoed Dry Order
IT. 8. Prohibition Commissioner I.
M. Dw an, who Te-twsaated 42 of IS
brewery gaaren stassne4 by Ma
ter CamiiaiH tar vastly in New
I or after the beer season of 1928.
V.1 Vogft- II .
SALEM, OREGON
.WIND"
tM.fT
KM Tort Wsrttj teas
terboro Brewery In Brooklyn" He
asked.
"No, I have not," I answered.
"Yon have them in the Phoenix
plant, haven't you?"
"Yes," I said.
"Well," said Dr. Doran, 'unless
you put agents Inside the Interboro
there will be a hell of a row up
there In two weeks."
DOKAN-g HINT ACCEPTED
I took this conversation as a hint
that the Phoenix people, after then
talk with me, had gone to Mr. Low
man and had charged me with pro
tecting the Interboro, as against
them.
Of course, charges of this nature
are continually being made against
officials who have a limited force
at their command. If you can't
catch all offenders you ought not
to catch any or you are discriminat
ing. In other words, if I could not
place six agents in each of my 22
breweries, I 6houId not place them
In any, because that would be dis
crimination; and If I did place men
In all my breweries, I would have
none left lor any other phase of
prohibition enforcement.
However, I decided to take the
hint and Immediately placed agents
inside the Interboro and also the
State Cereal Beverage plant at
Yonkcrs.
And on the day of this conversa
tion, March 6, Dr. Doran wrote me
that the Phoenix had complained
and that he did not thing any legal
objection could be raised. But "un
less these principal plants can be
covered simultaneously, you are
open to very grave charges. In my
Judgment it is Important that they
all be guarded Internally.
PHOENIX DENIED PERMIT
I refused to renew the Phoenix
permit last January, and recently
they brought an action in equity
against me to get it back. In pre
paring my answer to the action, U.
8. Grant, an assistant United States
attorney, made the answer specific
ally charge the diversion of illegal
beer, which I had carefully left out
of my findings. Such a charge,
clearly without proof, would have
materially weakened the govern
ment's case. Consequently I re
fused to sign the answer as written
in the United States attorney's of
fice and changed It to read In ac
cordance with the testimony. I be
lieve, especially after the August
raid, that my action will be upheld.
I refused to renew the permit of
the Interboro also. In my findings
on thai case, which are now a part
of the federal court records, X stat
ed It as my belief that beer had
been diverted on the night of Sep
tember 13 when nine trucks emerg
ed irom the warehouse premises
newt doer to the brewery.
There was testimony at the hear
ing before me that one of my agents
had exideavored to Influence anoth
er agent to take bribe from the
brewery sad had called another
sgerjt em the telephone to indutac
his statement that an the other
agents on the hicwery squad were
In the psy of the brewery.
RCPvbhLICAN leases cottnsh.
The attorney who appeared be
fore me In the bearing was Meier
Stelnarink, chairman of the Kings
county republican committee.
Shortly thereafter action In
equity was started against me, and
on one occasion In tbese court pro
ceedings Mr. stelnbiink appeared
before Federal Judge Mortimer W.
Brers, but It was argued last May
before Judge Byers by former Judge
Callahan.
The entire record of the hearing
was put before Judge Byers.
On July 3, three days after my
resignation. Judge Byers handed
down a decision in which he disap
proved my action and ordered the
permit to the Interboro issued.
Out of hundreds of cases In which
the federal courts reviewed my -decisions
in permit matters, tins was
one of two In which I was uvea out
I await with Intense Interest the
outcome of an appeal.
Copyright Press Publishing Co.
(New York World) 1W
Tomarrow M ior Cant obeli tells
eg Senator Cnrtls and Agent Bock..
GOVERNMENT
REFUSES LIGHTS
FOR AIR PORT
Notice of refusal to Install lights
at the municipal airport was re
ceived by the city in a eommunlca
Uon from the Department of Com
merce, Portland office.
The reason advanced for the re
fusal was that the "installation of
the lighting equipment on an es
tablished airport would be con
trary to the policy of the depart
ment and to the provisions of the
air commerce act of 1926." The
communication also states that
"the department further advised
this office that it appeared that
Salem was six miles west of the
airway and 12 miles southwest of
the Silverton Intermediate iana
lng field. Site 41, San Francisco
Seattle airway."
An effort was made several
weeks ago to have the government
install boundary lights at the field
here, although It was known at
that time that several technical
ities would have to be overcome It
was proposed that the city install
the lights, the governments later
reimbursing.
Two sets of flood lights have
been Installed st the airport by
concerns seeking to sell tbelr wares
to the city. One of them Is said
to be quite successful. The cast of
this outfit runs dose to 86000.
CHANGE OF HEART
Loveland, Colo, apt A thief had
a change of conscience here. One
night he stole a flower box from
the porch of Mrs. Elizabeth Allen.
The next night he returned it.
SENTENCE THEMSELVES
Dover, O. (IP) When two Dover
youths were brought before Mayor
W. R. Stueky on s charge of rais
ing too much "whoopee" In local
theater, he told them to set then-
own sentences. They condemned
rir . IO
i j-,
o G
utl jCLrrwon
THESE
House
New Suit Blouses $3.95
Specially priced at $3.95 these new suit blouses of fine quality
crepe de chine win hold the center of attention tomorrow 1 Pretty
pastels such as egg-shell, orchid, nile, white, beige, etc Sleeve
less fashions with frill and tailored collars. All sizes.
rj18)3tsna.f:jg3tltJ8j:..:8 )HSj83M:J83SX3S
FRIDAY,
Alexander Loses
Auto License
On Booze Count
Grand Island, Neb. .(UPI
Grover Cleveland Alexander,
former prtcber of the SL
Loast Cardinals, was fined
SIM and costs on three liquor
charges In police court here
Thursday.
In addition, his driver's li
cense was taken swsy as be
will be suable to drive an
automat lie in Nebraska.
The charges against the
hall player were operating an
automobile while intoxicated,
possession of liquor and In
toxicatioa. Alexander pleaded guilty,
paid the fines snd oasts.
themselves to confinement In the
funmedlate vicinity of their homes
after 8 o'clock in the evening.
HIGHBROW THIEVES
Toledo, O. (IP) Toledo's thieves
are going in for the finer things
of life. Sheet music valued at 8400
was stolen from a prominent or
chestrs conductor. The same day
J. H. Davis, piano tuner, missed
his automobile. It contained all
his tuning instruments. The car
was returned, but the instruments
are still among the missing.
SHORT TIME INVESTMENTS
12 Months Nets 11008.08 Cost 8SMM
Months Note 81080.88 Cost S9I8JS
Amounts $500.00 to $UM
Amply 6eewred and the highest type of Investment
Loans Investments Insurance
Hawkins & Roberts Inc.
IS Oregon BMg.
CHARMING
Pajamas
Modeled Tomorrow!
What's new in pajama fashions? Come to Mill
er's tomorrow and see the newest, niftiest pa
jamas imaginable, the new extra wide trouser
legs are here! Adorable for home wear . . .
practical as a kitchen garment ... for lounge
wear ... for bridge 1
These will be informally modeled on living
models all day tomorrow in the lingerie sec
tion. Also the newest styles in robes . . . flan
nels and silks. '
YOU ARE INVITED TO VISIT THE
DEPARTMENT AND SEE THESE
MODELED ANY TIME
TOMORROW
This Store Open Saturday NiteTU8:30
Zf"s jLnTjkZ jfc"" Mean-ii casjesrr is"?
SEPTEMBER 26, 1930
JUDGE HILL SETS
TUESDAY COURT DAY
dale S. Hill, new circuit Judge
for department No. 2 In Unn and
Marlon counties, has announced
that lie will be In Salem every
Tuesday to hold equity court and
sign such orders or hear such mo
tions or other business as may come
up. His visits here will not be
confined to that day as he will also
come on other necessary business
when needed at other times but will
be here in any event on every
Tuesday.
Circuit Judge MrMahan, who has
taken over the business of the law
court In department No. 1 also Is
sued an order postponing the open
ing of the October term of court
from October 8 to October 20, due
to the changes and the necessity
of familiarising himself with the
docket and the work pending for
that term of the law court. The
docket Is heavy and the original
date for starting the term but a few
days away from the time the
Judge acquired knowledge of the
change In the situation. The grand
Jury, however, will meet on Oc
tober 2 as per the original schedule.
Now Is the time to renew your
mail subscription to the Capital
Journal, at Bargain Bates, $3 per
year. tf
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