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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (June 2, 1931)
CIRCULATION Dally average distribution for the month ending May II. 1091 10,795 Average dally net paid 10,116 Umbr Audit Bureau of Circulation FAIR tonight rod Wednesday but cloudy or fogey on the coast; normal tem perature. Northwest winds. Local Max. 77; Mln. St; rain (; river -1.9 feet; cloudy; wind wind. 43rd YEAR, No. 131 Entered u second class matter at Salem. Oregon SALEM, OREGON, TUESDAY, JUNE 2, 1931 PRICE THREE CENTS ON TRAIN AND ST.WH NTANDH FIVK CENTS M NEAR AK OTEI ITfllV HH 0) 0) C MOTT ORDERS CLOSURE OF 3 LOAN HOUSES .Guardian, Western, Dime And Dollar Associa tions Affected Petition for Receivership Filed and J. P. Kava naugh Named Receiver Under an order forbidding the of ficers or board of directors to re ceive or disburse any funds of the association whatsoever the state corporation commission Tuesday morning took over the affairs of the Guardian Building and Loan Association of Portland and two af filiated concerns, the Western Sav ings & Loan association and the Dime & Dollar Building & Loan as sociation, it was announced by Jarues Mott, commissioner. The order does not effect nor does the action involve or Impair the as sets of such affiliated companies of the Guardian as the State Savings ec Loan coin on ny of Salem. Mott's order places J. R. Callahan, savings and loan supervisor for trie state department, in charge of the three Portland associations. It was Callahan's investigation of the af fairs of the three companies which disclosed the alleged Irregularities upon which the action was based Specifically, according to Mort, Callahan's report discloses that "the management of the Guardian Build ing and Loan association had Il legally abstracted from the a&fiocla-. (Concluded on pukb 10, column 6 STATE SAVINGS NOT AFFECTED Action of the corporation com missioner In connection with the Guardian Building & Loan assocl ation will have no practical effect on the State Savings & Loan as sociation of this city, said officers of the local association. Some reserve fund stock of the Btate Savings & Loan association Is held by the Mortgage Investment, company of Portland, It was stated, and four members of the board of directors of the local association are connected with the Mortgage Investment company but plans arc now under foot for a complete di Torcement of the two. "The assets of the two companies have always been distinct, separate and apart," stated J. J. Elliott, sec retary of the State Savings k Loan association. "There has been no mingling of assets one way or an other. Our association has never sent a dollar to Portland and the Portland association has never sent a dollar to us. Our assets stand practically as they were when the investment company took over the reserve fund stock. The plan, stated officers of the company, is to as rapidly as possible bring about a complete divorcement of any possible connection of the two organizations. It has been learned that when the Mortgage Investment company took over the tConcuided on pace 11, column 7) FIRE PREVENTION LINES TIGHTENED Bend, Ore. (TV A general tighten' tnx of lire prevention lines In cen- tral Oregon forests became effective Tuesday in areas facing the greatest tire hazards. The forestry office here announc- d that three lookouts were added, making a total of five, and eight ad ditional firemen were put on amy, bringing that department to strength of twelve. The greatest fire hazard was said to he In the blown down area in the Metolius river section of the Des chutes. Camp fires and smoking are prohibited there and similar bans have been placed on the Canyon and Jack creek districts below Al- Jlngham ranger station. Senator M'Xary Enroute to Salem Washington 'jpi Senator and Mrs. Charles L. McNary of Oregon were on their way to their home In Balem Tuesday. Their party left the national capltol Monday night and they expected to be In Portland Friday. senator McNary will return to Washington in October and will at tend the Crescent City and Port Orford harbor hearings and the meeting on proposed canalization of the Willamette river. Good Evening! Sips for Supper By DON UPJOHN Hal Patton is constructing a handsome tile building at the rear of his State street store. What, what! Can this be the new hotel? The architecture seems to be designed along the lines recom mended by the leading special ists of this locality and else it here. As tlie move for having weeds cleaned from property about town gets under way we suggest that the weed brigade first make a care ful survey of councllmanlc proper ties so that no one wiil be over looked. We met Al Oucffroy clumping up the street yesterday on his new pair of shoes bought about April 1. "The heels are now worn off enough to make It worth while to shift over to rubber heels," said Al, 'and I plan to do that same when rubber heel day comes along Wed nesday. We're glad to get Al to commit himself so we can plan on a nice quiet summer on the streets here this year. Having received a number of In quiries on the program of our strawberry competition we are glad to report. It will be remembered we were to give as a grand prise to the winner of all tne empty strawberry hallocks. And we adhere to this generous offer. We can an nounce In the light of this fact that the Woodburn chamber of commerce and Dr. Gerald Smith can have their empty hallock back any time they wish to call for it. Archie Holt was up from Mcdford yesterday looking fine having lost 10 pounds under the influence 01 that hot but bracing climate. But 10 pounds doesn't take much of a nick out ot Arcnie. Reports of drought again from all over the country and of probable short crops In all lines indicates that God has taken a hand to re duce production down somewhere to the point of consumption. May be with Legge off the farm board Providence figured that It would have some show. Anyway marriage licenses are showing an Increase here this year indicating that in one brancn 01 the Industry the depression Isn't causing much worry. The earwig crop around here this summer also bids fair, from early returns, to a heavy increase over any preceding census. One family reports that It left a wool blanket out in a lawn seat over night for two or three nights and It was half eaten up by ear wigs. Thlc rovnl the rcfil wev tn combat this pest. Just drop your winter overcoat on tiie lawn and save the nowers. STARVED TOTS GAIN WEIGHT Portland (IP As officials prepar ed Tuesday to prosecute Miss Lelah Nelson, "self-styled physiotherapist who was arrested after officials found a number of emaciated chil dren in her "sun school,'' encourag ing word came from Doernbecker hospital where the children were placed by the court. Harry Chinakas, the 13 year old boy who was found In Miss Nelson's school ' weighing only M pounds, eained six pounds In three days at the hospital, attendants reported. It will be a matter of several cays, however, before they will be able to feed the boy solid food, so emaciated and starved was his condition. Miss Nelson said she was "bulld- hur ud" the children by alternate starvation and milk diet. She was arrested late Monday on a warrant charging disturbance of "tne public peace and health, a misdemeanor, frvstalized Lve Fed to Children rvu-tmrtn Kv. npuAit Intensive i - inaariM nnirntl- senren ur " - fled man who attempted to feed crystallized lye to several school children under tne pretext tni n was candy was made Tuesday. Two children. Clara ttose im lin. 5. and Wanda Rogers, who l - Parnt. if whlrh were piB.uig ' the man visited suffered painful mouth bums. Tn. ma first onrvflred at the .i .v. rfitirirt uhnni and scat tered pieces of the white substance on the ground. oeverai un.ui, started to eat ine canay um cautiomd not to bv older pupni. vfRC-r mRRST FIRE Walla Walia. Wash. 't-The sea son's flr-t forest fire In this vl . . ..nnrtrri cover about an acre on Weston mountain, near Weston, Ore., Tuesday. STATE MONIES BOUGHT PIANO FOR GOVERNOR i Articles of Impeach ment Laid Before Ten nessee House Horton Accused of Fraud, Conspiracy and Wilful Neglect of Duties Nashville, Tenn. nrr Eight arti cles of Impeachment, charging Gov. Henry Horton with various deed of maladministration, rang ing from alleged conspiracy with political friends for their own gain, to "moral delinquency" In purchase of a $2,850 piano out of state funds, were presented to the state house of representatives Tues day. If the house approves the arti cles, the senate will sit as a trial court, with the governor as de fendant. The chief executive has been under fire since lost fall when various banks controlled by Rog ers Caldwell failed, tielng up near ly $7,000,000 In state funds. The articles presented 10 me low er house were drawn up by a com mittee of five members who found their basis for the charges In the majority report of a legislative committee that Investigated the Horton administration. The count of seven In the arti cles, made public last week, charg- CConculded on pace 11. column 7) ABOLISH STATE MARKET AGENT The office of state market agent, which position Is held by Seymour Jones, will be abolished and will not become a part of the new depart ment of agriculture, Max Gehlhar, director of agriculture, announced Tuesday. The department of agri culture will become operative July 1, as provided by the last legislature. The move eliminates an expendi ture of $7300 a year, Gehlhar an nounced. In addition to the agent, who receives a salary of $400 a year, the Jobs of the secretary and ste nographer are also eliminated. Geh lar stated this was but the ocgin nlng of other economies that will be effected within the department, the majority of which will not become effective until later in the year. Under the new department the market agent was to be renamed as chief of the division of markets, grades and standards. The elimina tion of the office, Gehlhar said, was made In the interest of economy and to avoid duplication of work that Is now being done by the Oregon Agri cultural college. The grading and standardizing of fruit and vegetable products will be attached to the di vision of plant Industry, while that of dairy and poultry products will be assigned to the foods and dairy division. Oehlhar said that more applica tions were received for the position of head of the markets department than were received for all other de partments combined. "DEAD" GIRL COMES TO LIFE IN MORGUE Greenwich. Conn. (LP) Eighteen- year-old lve Rogers, daughter of Mr. and Mrs. Richard W. Rogers, was recovering Tuesday at her home from the shock of being pronounced dead" and put In a temporary morgue In New York City to await an undertaker. Her parents told the United Press that the girl had fainted In the Grand Central terminal while en route to catch a train home last Thursday. A doctor was called and pronounced her dead. Therealtcr, according to their story, she was placed in a temporary morgue in the terminal, where the cold air revived her. Terrified, she knocked on tne doors of the dark, mlndowless room. they said. Finally an attendant of the terminal hospi al unlocked the room and released her. Her parents meanwhile had been notified ot her "death." Dollar-Liner Hits Bottom at Whangpoo c. tv. ,ar Th. marine exchange Tuesday reported the Dol lar liner President jenersun aurvunu at the mouth of the Whangpoo river. Shanghai. Advices said the ship's cargo was being oiscnargru iim that she probably would be refloat eed at the next hl?h tide. The ship was on her way uwiu iun.w to Shanghai. Board Orders Rebuilding Of Dairy Barns Reconstruction ot the two dairy barns of the Oregon state hospital, destroyed by fire last Saturday night, was ordered Tuesday by the board of control, and work was started at once. The loss by fire was estimated at $25,000, but the estimate of reconstruction was not given. The board further requested the Oregon State college supply the ne cessary architectural advice for re constructing the buildings. Dr. R. E. Lee Stelner, superintendent of the state hospital, will have charge of the building. FALL EXPECTED TO EVADE PRISON Washington (LP) Albert Bacon Fall must go to the prison gate, but he may never set foot Inside the walls. Justice probably will lead the former secretary of the Interior to the prison and release him there content with exaction of a $100,000 fine, and the fine may never be paid. The last legal recourse against sentence of one year in Jail and the fine was exhausted Monday when Chief Justice Charles Evans Hughes curtly denied Fall's application for review of his case. Hughes was a cabinet colleague of Fall during the Harding adminls tratlon. Expectation that Fall will not ac tually enter prison is based on the sMtcment made November i, ia, hv .liiKt.i William Hitz of the Dis trict of Columbia supreme 'fcourt, before whom the former secretary was convicted. Fall was 111 then. He had made a dramatic entrance into the courtroom In a wheel chair. The Jury was excluded during his painful progress lest It be Infuenced by sympathy for a sick, old man. In passing sentence, Hitz referred to Fall s physical condition. "This court," said Hitz, "has the power to put a defendant upon pro bation or to suspend sentence; and were this sentence to go into execu tion today, the court of Its own mo tion would suspend so much of the sentence as requires Imprisonment so long as the present condition ex ists." FOR PINCHOT Washington UP) Sentiment among western senators over the prospects of Governor Pinchot of Pennsyi vanio. becoming a candidate for the republican presidential nomination next year is being sounded out by some of his friends here. While the senators receiving the overtures have declined to divulge the names of the Pennsy.vanian s friends, the approaches precipitated much conjecture at the capitol. The senators would not Indicate their attitudes or discuss the matter open ly. Previously speculation Involving Pinchot and other republican Inde pendents has been circulated. This, however, appeared to be the first indication that a candidate may enter the field against President Hoover since former Senator France ot Maryland, announced his candi dacy. Republican independents from the northwestern states have not ap proved a number of the administra tion's policies. Leaders of this group have been urged by Senator Brook hart of Iowa, to enter the republican presidential race In 1932. He also has suggested Pinchot as a possible candidate. Plan To Test Shipments Of Fruit 1 o Middle West Markets Feasibility of shipping perishable fruits to middle west ern markets in less than carload lots by airplane is to be tried out by Salem fruit growers in a test lot of 500 to 600 pounds to be sent the latter part 01 mis month. This decision was reached at a meeting of representatives of Salem fruit growers associations, wholesale distributors and members of the board ot the Eyerly Aircraft corporation held here Monday night. The fust shipment, to consist of extra fancy black cherries, will be sent 1500 miles to Omaha. Neb, probably the farthest point east at which fruit could be shipped profit, ably by airplane, the latter part of this month. A four passenger cab in monoplane piloted by ofliclalt of BIG LEADERS AIR OPINIONS ON POLITICS Roosevelt Urges Cau tious Action During Present Depression Pinchot Warns Against Hand of Utilities in Na tional Affairs French Lick. Ind. UP) Governor Frandltn D. Roosevelt of New York and Gifford Pinchot of Pennsyl vania were headliners of the an nual governors' conference here Tuesday. The Pennsylvanian chose to de liver a warning against domination by public utilities in political affairs. He said this is a grave danger to government by the people. Governor Roosevelt, speaking on land utilization and state planning. told the state executives that In time of booming Industry "we can overlook the defects of organization and danger signals from Industry and agriculture, but In times such as the present, these symptoms at tain new importance and show us the urgency of tne new prooiems we have to face. Another speaker at Tuesday's ses sion was Governor George H. Dern, of Utah, who advocated that a chief executive be given the duties and powers of a general manager, and be made the real business head of the administration. Governor William Tudor Gardiner, of Maine, CohoIudcd"on page" 11, column 0) HUGE SAVING IS YEAR'S PROGRAM Washington, P) Conferences between President Hoover and Secretary Hyde have disclosed that for the next fiscal year the agri culture department expects to save $20,000,000. In addition, it was said at the White House Tuesday, during the present fiscal year, which closes July 1, there will be an additional saving of $11,000,000. The White House statement said: "Secretary Hyde and the chiefs of the department of agriculture re port that out of the appropriations available for expenditure by the department during the fLscal year ending this month, together with unexpended balances carried for ward from last year, they have dur ing the year saved about $ll.oco,ooo by economies throughout the var ious divisions. "Considerable unexpended bal ances will be carried forward Into the next fiscal year beginning July 1 to cover obligations and contracts entered into. "Of the appropriations for this next year and these balances, it Is expected that about $20,000,000 will be saved during the next year." CRESWELLGRAIN PLANT DESTROYED Eugene, Ore. (LP) Fire which started from spontaneous combus tion, destroyed the plant of the Creswell Grain and Seed Co., and two lumber docks at Creswell Mon day night. The Eugene fire depart ment dispatched apparatus to Cres well to aid the volunteer department In stopping the blaze. Damage was estimated at about $15,000. Airplane the Eyerly company will make the test fllaht. Fruit for the cargo will be furnished by the Salem Black Cherrv Growers association, under a pledge given by O. E. Brook manager. While transportation costs wiil be considerably above other transpor tation rates on the Initial shipment, the fruit can be placed on the Oma ha market within 34 hours after nicklni here, after a flight of 17 hours at comparatively slow speed, and command a superlative price TcoDCluded on prge 11. column 4l Governor Attacks Referendum Upon State Police Force By HARRY N. CRAIN With but approximately 4000 names lacking to complete the referendum petitions which would put the Btate police department act on the shelf pending a vote of the people at the general election in November, 1932, and signatures being attached to the petitions at a late which indicates success for the referendum Governor junus Meier has voiced another plea to the voters of the state to Ignore the petition circulators. Tuesday morning Ed F. Averill, former state game warden and sponsor for the referendum move ment, estimated that close to 7000 signatures had been obtained on the petitions. Ten thousand six hun dred and eight names of registered voters must be obtained and cer tified to by midnight Friday, and a certain percentage of the names signed are always thrown out In the checking. "I feel that we have a good chance to put the referendum across," Av Ccon"cluded onpnKe 10, column 4) PLOT AGAINST FARMERS SEEN Wenatchec, Wash., ?) John S. Simpson, president of the Nation al farmers' union, who was enroute Tuesday to a meeting of the union at Couer D'Alene, Idaho, charged In an address here, that "every thing happening to the farmers In the past two years was planned deliberately as a diabolic plot, "The comptroller of the currency told me early In 1930 the federal reserve board planned deflation to start May 1,' he added. "The farm board spent too much money gambling In wheat at Chicago and in cotton at New Orleans. It made gambling so crooked the gamblers had to quit." He advocated a government- minimum price of wheat and cot ton, based on "cost of production plus a fair return." He assailed the farm board, accusing It of deli berately "betraying" the American farmer. He said the minimum price of wheat in Italy was $1.60, Germany (1.50 and Prance 11.85. CONGRESSMEN TO SEE OREGON SIGHTS Portland P Word reached here Tuesday from Washington, D. C, that the sub-committee of the house appropriations committee for the Interior department will visit Oregon next month. This committee will reach Klam ath Falls July 14 after conducting several California hearings, and will spend that night there. The next day the party will go to Crat er lake, spending the night of July 15 there. On the 18th a trip will be taken to Chlloquln. From there the group will go to Portland. The Itinerary then calls for a trip to Seattle, a tour of Alaska and then visits to other Washington state points. TEXAS GUINAN TO PAY OWN WAY HOME Havre, France Uft Texas Guinan not only will have to leave France Wednesday afternoon, but she will have to pay her own fare back home, the director of the French lines said Tuesday. "Her visa stipulated that she and her girls were not coming to France to work," he said, "and It's not our fault that she has to go back. They can go anyway they want to but it will not be at the expense of this line The Broadway entertainer spent Tuesdav afternoon posing for Am erlran news reel photoaraphers and sorting out several proposals of mar riage which she said sue nau re ceived. She said nothing regarding re- oorts that she had been offered Job at Monte Carlo and word from the Casino management there said no official offer had been made, al though It might be powible Casino booking agents had approaenca ner. Medford Walkathon May Be Suppressed Medford, Ore. (P) George A. cod ding, district attorney, announced Tuesdav he was awaiting word from C. H. Oram, state labor commission er, relative to action on the local "walkathon" In which there are sv- en women contestants. The affair lias gone 300 hours. COUNTY FAIRS GET $56,258 County fairs In Oregon this year will receive $56,258.03 toward their support from the one-twentieth of a mill tax levy assessed against real property for this purpose, the sec retary of state announced Tuesday. Of this sum $1,000 will be used for the northwest turkey show in Doug las county, as provided by the last legislature. Where counties receiving their apportionment do not hold fairs this year, the money will be applied to county roads, the law provides. Most of the counties hold these an nual agricultural exhibits, and more funds are raised within the coun ties to complete financing the ac tivity. ' The state fair at Salem is not financed by this fund. Multnomah county will receive $16,50. 17 of the total appropria tion, while Lane county is second with $2,131.80, Marion county third with $2,696, and Clackamas xourtn with $2,623.40. Umatilla county will receive $2,369 and Klamath county $2,022. Counties receiving between $1,000 and $2,000 of the fund Include Bak er, Clatsop, Coos, Douglas, Jackson, Linn, Tillamook, Union, Washing ton and Yamhill. AH others re ceive less than a thousand dollars, with Curry county receiving the least $304.14. REDUCE POWER RATES IN BEND A -supplementary order, Including the city of Bend in the 10 per cent rate reduction oruer last wee xo the Pacific Light and Power com pany, was announced by Public Utilities Commissioner C. M. Tho mas. Thomas said a controversy over pole tax had been settled by Bend officials and the company, thus opening the way to the rate re duction. It was estimated Bend will save about $11,500 yearly. H. B. Parsons, Bend city attor ney, conferred with Thomas late Monday. DEBT INCREASED ABOUT HALF BILLION Washington, fP) It was said at the White House Tuesday that the financial transactions of the gov ernment for the fiscal year ending June 30, 1931, will show an Increase of about $500,000,000 In the national debt. The treasury deficit. It was said, will be from about $900,000,000 to $050,000,000, of which about $440, 000,000 will be due to the redemp tion of the national debt required by law. The deficit Is principally due. It was said, to a falling off In re ceipts of the treasury caused by the depression, which will be about $840,000,000 below the fiscal year which ended June 30, 1930. Added to this Is the additional burden of about $.rtO.O00.00O caused by the fall It. pnstnl receipts. DILLARD TO BUILD ALSEA HIGHWAY Portland Aj F. C. Dillaid. Med ford contractor, was low bidder Tuesday for the reconstruction of a six-mile section of the Alsea high way adjacent to Walriport in Lin- coin county. He bid $81,835. The- Union Construction company. Port land, was next at $M.072. Twelve contractors submitted proposals to he bureau of public roads. Find Crude Bomb In Plane Hangar New Yotk (LP) A crude bomb with a half charred fuse was found In a cigar box near Hangar No. 4 at Floyd Bennett airport Tuesday. live bomb was taken to a police station In Brooklyn for examination I U) uuillv oiuau ,,,,t. DEADLOCK III NEGOTIATIONS DELAY BREACH Crisis Between Church And State Held Grav est in Recent Times Closure of Catholic Clubs Causes Intervention of Cardinal Gaspari Rome, (TO cardinal Ptetro Gas- pa it i, who as papal secretary of state signed the Lateran treaty In 1920, is believed to have taken a hand hi the new crisis in relation between the Vatican and the Ital ian government which has resulted in dissolution by Premier Musso lini of all the Catholic youth clubs in Italv, It Is understood that the cardinal is laying the groundwork for offi cial negotiation to prevent what appears to be a parting of the way between the church and th state. He is one of those. It la said. who regard this situation as one of the gravest m recent times and threatening both the Lateran treaty and the Concordat between Rome and the Holy see. American interests are still Involved, for per mission extended unofficially Mon day for reopening of playground operated by the American Knights (Concluded on page 11. column ORMOND SILENT IN CITY PRISON Portland -VP) While his fellow prisoners regarded htm with anx ious, wary eyes, Ira H. Ormond, 3S, sat hunched in a comer of the bull pen" of city Jail Tuesday, dull- eyed and gaunt. Sunday, In a maniacal frenzy, he slew his two children and his wife. A formal complaint charging murder In the first degree was filed against the insurance salesman and former sailor Monday. He remem bers holding a gas hose connection In the mouths of the eight year old girl and the six year old boy, he told officers, but he has no recol lection of slaying his wife who died from frightful cuts and stabs In flicted with an old bayonet. Half clad and dancing, shrieking, weeping and laughing like a mad man, Ormond was found by neigh bors and police Sunday beside the mutilated body of his wife. He had Intended to take his own lire, ne said. It was believed Ormond became suddenly Insane after brooding on financial troubles. He reseniea deeply the circumstance that hla wife worked and furnished the ma jor support of the family. Monday Ormond refused to take food In the Jail. Unnaturally, his fellow prisoners thought, he ap peared to show no grief over the terrible tragedy, and showed no concern over his own predicament. CONTESTANTS REFUSE TO QUITWALKATHON Portland 'IB The Lotus Isle walkathon may be officially ended but It still continued Tuesday for eight persons locked Inside the big ballroom. They refused to quit at midnight Monday after Al Painter, promoter, with a dramatic flourish, paid each contestant $250 and said he had promised State Labor Commissioner Oram to close and he was "washing; his hands of the whole affair." The contestants, however, refused to accept the check, saying they were striving for the grand prize of $2000 and a diamond-studded belt and would not quit. Pslnter ordered the crowd out and the ballroom doors locked. Several persons acre reported peering in the windows of the ball room while contestants milled around, apparently confident that the doors will be reop-red In a day or two. Baker Bay Company Gets Fishinjr Lease Olympla, Wash. (IP) Baker Bay Pish company Tuesday held state lease to fish off Pencock Spit near Ilwaco. The single bidder tor the lease offered the state land board $7500 a year, a minimum for the fishing right for two years. A $15,000 a year lease was offered last week but there were no bidden. It was claimed fishing was not pro fitable enough to pay such a leas price.
