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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (June 4, 1931)
A CaMtalJI Journal CIRCULATION Dally iTiran distribution for tht month ndlnc May 11. 1931 10,795 Averagt daily net paid 10,11( Utmtxr Audit Bureau at ClnuliUoa FAIR Tonight and Friday; warmer with decreasing humidity In the Interior Friday. Moderate northerly wind! Offshore. Local: Max., 10; Min., S9; rain, I; river, -l. feet: clear; north wind. 43rd YEAR, No. 133 S.?Son SALEM, OREGON, THURSDAY, JUNE 4, 1931 DDirr; fur Dec rrMTO on train and hki ijiucin o ju n Ml JV V -a-imiimi JVIUVIL p Mil FUHI BOARD ORDERS TRANSFER OF MODELFARMS Property Given Boise Es tate in Payment of Preferred Claims Experiment in State Pa ternalism Ends in Fail ure and Loss The three model farms estab lished by the state at Independence, Roseburg and Ochoco in 1919, Thursday were transferred to the Whitney L. Boise estate by action of the board of control in payment of the preferred claims of the estate against them, amounting 'to $14,500 and interest. The disposal of these farms, upon which the state expended approxi mately $73,000, has been before the board of control since the elimina tion by the legislature In 1929 of the Oregon land Settlement com mission, which was formed to buy and operate these three farms. The legislature however did not ap proprlate any funds with which to pay off the obligations, and the ac tion of the board Thursday was de clared to be the extent to which it could eo. Whether or not the proposal would be accepted by the Boise estate was not known. Plowden ""(Concluded on puReli. column 7) YEGGS CRACK M'KAY'S SAFE Salem police Thursday were working out several dues that pos sibly may result in the arrest of burglars who some time during the night cracked the safe at the Doug las McKay Chevrolet comapny's of fice and got away with $188.10 In cash and a diamond ring valued t $300. How the cracksmen got into the building is something of a mystery, but there are indications that they concealed themselves in the build ing before it was closed for the night and then completed the Job earlv In the night. Officers investi gating the burglary c'juld find no indications that the building had been entered by forcing doors or t windows. The safe combination lock was knocked off with a hammer and entrance to the interior of the safe eoniDleted bv driving out the lock without the use of explosives. All drawers and compartments in the vault were rifled. This is the third time in recent months that the company's safe has been cracked. Not much loot was taken on the previous occasions. While the police have clues to Wednesday night's burglary they are vague with considerable doubt whether they will bring results. A car with occupants whose conduct was a bit unusual was seen arjoui the building early In tne evening. BANK BANDITS SLAIN BY BUSINESS MEN Mounds. Okla 'Ft Two bank rob bers were killed by a posse of busi ness men as they atempted to es cape after looting the Bank of Mounds Thursday. The men aroused suspicion on entering the bank. As they emerged they forced Frank Crum, cashier, and H. C. Crews, assistant cashier, ahead of them as shields against the bullets of a posse which was waiting. However, members of the Dosse were so stationed that they were able to fire on the robbers without hitting the bankers. The loot, about $600, was recover d. - m Spain Confiscates 1600 Cathedrals And King's Castles Madrid jm The government Is sued a decree Thursday declaring that many cathedrals and churches as well as a number of private cas tles. Including properties of former King Alfonso, are "hl'torlc and ar tistic monuments belonging to the nation's artistic treasures.'' The order places approximately 1,600 such buildings under control of the fine arts committee of the vninl.trv nf Huratlnn. Ownership continues In the hands of the church or private citizens but these "national monuments cannot be disposed of or altered without approval of the govern ment's fine arts committee," the order says. Good Evening! Sips for Supper By DON UPJOHN F. ' (Bob) Roberts, local pas senger agent for the Oregon Electric up and got married In Portland Monday, according to report we have received. We wonder if he picked Monday to get in on the week, end fares? Jim Smith, our county com missioner, moved 130 head of his white faced cattle this week from his St Paul ranch over to King's Valley in Polk County. If you don't believe it just drive your car from St, Paul to King's Valley. We just heard about a new legal quirk today. According to the story a chan over near Dallas took two children to board for awhile. When their parents showed up to reclaim the children they couldn't pay the board so the party boarding them hung onto the children and said he was going to file a lien on them for board money. A little girl we lenow dropped her Lindbergh bank onto the floor and broke the head off. That's tne first time Lindbergh has lost his head since flying to Paris. One big thing the mayors In France have accomplished. They've proved every disagreeable allega tion that Europeans have ever made about our citizenry so they might as well come home now. THE DIVORCEES HELP BILL From Reno, Nevada, cornea check for $2 sent by Levi B aimer for the Billy McAdama fund. I knew Billy way back In '82 when I used to cover tne wnoie town w Salem all alone with the 'Town Talk,' now the Salem Capital Jour nal," writes Levi. "I worked for a Mr. Conover and son, north, south, east Salem and Piety hill. I did it on a pinto, glass-eyed, spotted pony, contrary, ornery and mean as hell, he was. That's why I was stuck on him. Used to keep him in the brick livery stable where Salem Hardware store now is same build ing $15 a month for his keep. All the kids In town stuck on that pony. Hope to see some Saleroites here 4th of July for big fite. . We ex pect over 20,000, tickets from $3 to $20. Regards to Clarence Blakely if you happen td see him leaning against a Ladd ec Bush window. FINANCIER DIES SEATED IN CHAIR Oyster Bay, N. V. IIP) Mortimer L. Schlff. banker, philanthropist. member-of the firm of Kuhn, Loeb & Co., and president of the Boy Scouts of America, died during the night of a heart attack. He would have been 64 Friday. After a day which included his usual visit to his office, an after. noon round of golf, and dinner with his family, he retired to his room. He was found dead clad in a loung ing robe and seated in a chair. Mr. Schlff, who was born in New York city June 5, 1877, had been a partner in Kuhn, Loeb & Co., since the first of the century. He was married April 30, 1601, to Adele O. Neustadt, who went to Europe two weeks ago. Mr. Schlff Intended to sail next week to Join her. There are two children. Among the concerns In which he held directorates were the Los An geles & Salt Lake railroad, the Western Union Telegraph company and the American & Continental corporation. He was active In international af fairs, especially as they involved finances. As early as 1912 he took part In the six power group con ference in London concerning a Chinese loan. Six years later he again was called Into conference concerning a Chinese loan, this time to Chinese republic. In 1922 he headed the American committee at the international Boy Scout conference In London. SHOOTER KILLED IN RENO JOINT Reno. Nev. IPt William 3raham one of the "Big Pour'' In the gam bling fraternity here, and associated with Jack Dempsey In fight pro moting, shot and killed W. H. Mc cracken at a local bootleg estab lishment early Thursday morning when McCracken, who had Invaded the premLses flourishing a run shot Graham In the arm. Graham was arrested but released shortly afterward on his own rec ognisance. A coroner's Inquest will be held at noon. Witnesses said live shots were fired, the first two by McCracken and the others by oraham. Ail oi Graham's shots took effect. There were five others beside Oraham in the Haymarket club when McCracken "came in a shoot In'" witnesses said. His first shot splintered the bar; the second graz ed Graham's arm. COURT BATTLE O'ER GUARDIAN GROUP BEGINS Mott Files Motion To Set Aside Receivership Ob tained After Closure Makes Startling Charges of Mismanagement Funds Diverted Portland IIP) Seeking to retain control of the Guardian group of savings and loan associations which he took over Tuesday, James w. Mott, corporation commissioner, Thursday filed In circuit court a motion to set aside the receivership asked and obtained by the officials of the associations. After Mott had taken over the group of companies and put J. R. Callahan, chief deputy in charge of the corporation department's build ing and loan association, in control, J. S. Moltzner, president ox tne Guardian company, obtained the ap pointment of a receiver for the com panies. On motion of Moltzner lor a vol untary receivership Circuit Judge Lusk named John J. Kavanaugh as receiver. At the time Moltzner filed his motion for receivership the com panies were then under the control of the corporation commissioner. In his motion seeking to vacate Judge Lu6k's order appointing Ka- '.Concruded 'on page 10, column 4) FUTURES HELD AID TO MARKET Ottawa IIP) The royal commis sion on grain futures reported to the house of commons Thursday that dealing in grain futures is, on the whole, beneficial to the farmer. The commission, headed by Sir Josiah Stamp, widely known Brit ish economist, found that wmie tne futures system aroused distrust and suspicion in the minds of some farmers. It really benefitted them by furnishing insurance for hand ling of their grain, provided an ever ready and convenient means of marketing, and was of distinct ad vantage to the larmers in the prices they received. The commission was appointed by parliament to report on the ef fect dealing in grain futures has upon the price, received by the fanner. It began its work April 13 at Winnipeg, held sessions in Win nipeg, Reglna, and Calgary and In formal meetings in Minneapolis and Chicago, and ended Its study In New York April 28. The report granted that dealings in futures might encourage minor price oscillation and suggested closer government observation Mid, possibly, government control, PAROLED BY MEIER BEATS UP WIFE Dirtl.nrf itm ritrl ThlbeadeBU burglar who was paroled from the penitentiary oy wvemor paeier, Thuwlttr mi xpverelv beat his wife Elizabeth that she was removed to a hospital. Her condition was reported tn h jritlfal Thlbeadeau used his fists and feet to Inflict the beating, patrolman Scott declared. The man then fled, n,4 B-a. hln. cnutrht. hv nnllce. Thlbeadeau lost his temper when Ills wife tnreatenca to leave mm, sne said. The man was sent to the prison on December 23, 1930 for burglary an was paroled on May g. Feeble Minded To Celebrate Fourth Without Cost Inmates of the state feeble-mind ed Institution will enioy their Fourth of July celebration "without cost to the taxpayers." Governor Julius L. Meier Thursday opposed the requi sition for the institution for fire- wbi nMiMttri tn th. hnarri of control, seconded by Rufus C. Hoi- man. The governor announced he would see to It the inmates received their fireworks, and Holman also proposed to'contnbut-s to the fund personally. Loans to Brokers Show Decrease Washington ttl Loans on stocks and bonds to brokers and dealers by Federal Reserve member banks In New York City decreased W5.000.000 during the week ended June 3. reaching a new low at il ,539.000,000. Application for Radio Station At Salem Denied Washington, UP) A denial of the application of H. B. Read of Salem, Oregon, for authority to construct a radio broadcasting station there, was recommended to the fed eral radio commission by Ex aminer Hyde Thursday. Hyde said Salem has good radio service from stations in other cities. ASK RECEIVER FOR GILMORE Portland (JPl The Forrest E. Gil more company was named defend ant in a $1,000,000 suit filed here Thursday by the Bank of California National Association, which asked that a receiver be appointed for the company. The suit was filed by Jo seph K. Carson Jr., acting as attor ney for the bank association. , The Forrest E. Gilmore company, maintaining Its principal place of business In Portland, manufactures casing head gasoline from natural gas. The company has no connec ""(Concluded I "on" page llTcoiumn 8," DO-X RESUMES OVER SEA FLIGHT Porto Praia, Cape Verde Island, (IP) The Dornier DO-X reported by wireless at 8:20 p.m. Greenwich time 11:20 pm. EST) that it was flying splendidly and hoped to arrive at Fernando Noronha at 1 .a.m, Green wich time. Porto Praia. Cape Verde Islands (LP) The German seaplane Dornier DO-X resumed Its long-Interrupted flight to South America Thursday and several hours after her flight was making good progress. The British steamer Teresa re ported sighting the DO-X at 3:55 p. m. in latitude 10 north, 32 west, apparently going at good speed and with all well aboard. Previously great excitement had been caused here by false radio re ports that the DO-X had fallen Into the sea 60 miles from the Islands. A tug was sent to the rescue, but the reports subsequently were cor rected by the radio stations which appeared to have received garbled messages from ships, one announce ment even saying that the DO-X herself had radioed that she was falling. COLONEL HOUSE FOR ROOSEVELT Manchester, Ms., HP) Colonel Tfidward M. House, political advisor to President Wilson during tne greater part of his administration, Thursday declared his preference for Franklin D. Roosevelt as the democratic party's next presidential candidate. House, who arrived recently for his 36th summer here described Roosevelt as "the most able avail able candidate." "If nominated, he'd be elected," the Colonel said. He said he also thought well of Newton D. Baker, secretary of war under Wilson and asserted he had the greatest admir ation for former Governor Alfred E. Smith. "I was sorry the people did n't elect Smith the last time," he declared. "I am very fond of Governor Roosevelt. We are friends of 20 years. We see a great deal oi eacn other and I agree with .him on many Issues of the day. including tne Smoot-Hawiey larni oni m the need for reducing Its schedules." Aircraft Board Plans For Safety In Air By Regulating Parachutes Strong censure of the "gunny-sack" parachute used by barnstorming aviators as a menace to the lives and safety of themselves and the public at large was voiced by members of the state aeronautics board at a meeting held In Portland Wed. nesday night, and as a result the board will adopt a new set of regu lations governing the quality o! materials, packing and use of par chutes for exhibition purposes, as part of Its general program f greater safety In the air, A thorough revision of the regu lations governing the aviation in dustry within the state, under the broader powers Incorporated in the state aviation code as revised by the last session of the state legis lature which becomes effective Sat INITIATIVE BILL PLANS MERGER OF COLLEGES U'Ren Preparing Mea sure for Other Parties On Consolidation Originates at La Grande and Plans Elimination Of University Portland (LP) That an Initiative petition embodying the recommend ations of the recent survey of the higher education system in the state, and possibly recommending that one of the plants, either at Corval 11s or Eugene, be Junked, will prob ably soon be circulated, became known here. The movement has been discussed freely among the granges of the ctateBnd probably win become one of the major Issues at tne state grange meeting at Medford, next week, it was learned. W. 8. TJ'Ren, Portland attorney, admitted that he is preparing to draw up some such petition, acting tor various groups of persons. Tnese groups, he said, are at present centered In eastern Oregon, where J. D. Zurcher, La Grande attorney, is working for the movement, and where R. B. McLellan of Enterprise is one of the sponsors of the move ment; and in the Coos Bay district. TJ'Ren admitted that he has not road the survey of the. national edu cation bureau and knows of it "only through what I have read in the papers.' He said he would read (Concluded on page 11. column 6) WHEAT TO HIT WORLD LEVEL Washington UP) Chairman Stone of the farm- board said Thursday that domestic wheat prices even tually would reach a world level basis. He admitted he had no idea when this readjustment as the re sult of the withdrawal of govern ment stabilization would occur. One or two bright spots, such as a crop failure In some country, he said, would provide a stimulus for a world price rise within the next crop year. The present tendency of domes tic wheat, however, the chairman said, probably would be downward to establish proper differentials with Liverpool prices to represent the transportation costs in export business. After this has been ac complished. Stone believes that any changes In wheat prices will be for the better. He said the new Canadian bounty of five cents a bushel on wheat to aid farmers would not place those growers in a better competitive posi tion than American farmers because of the longer freight hauls neces sary to get their wheat to the mar ket. RESTRICT USE OF IRRIGATION WATER Grants Pass 'Pi Farmers in the Grants Pass Irrigation district Thursday were placed on restrict ed use of irrigation water following the announcement that the water supply was lower now than last summer when a drought record was made. urday, June 6. will be completed as early as possible. Among the major Items In the new recusations besides those gov erning the use of parachutes, will be simplified methods of certifying the airworthiness of aircraft, In cluding planes used commercially, for private purposes only, and ex perimental type-.; provision for li censing of Instructors of aviation students, of amateur or private pil ots, and of commercial pilots en gaged In flying planes for hire Too often. In the opinion of the "(Concluded on p(re 11, column Referendum Upon Fund For Colleges Successful, Claim Fate of Attack on State Police Bill in Doubt With 2600 Names Needed by Friday Night; Averill Charges Governor and Friends With Unethical Opposition Tactics; Circulators Threatened And Heckled , With referendum petitions already completed and filed with the secretary of state to delay operation of the legisla tive acts to impose a tax upon oleomargarine and to close the Rogue river to commercial fishing until after the general election of November,. 1932, there are strong prospects that the referendum movements against the act creating the new depart- ment of state police and the mea sure appropriating money for the support of the state institutions of higher learning will be perfected before midnight Friday, when the statutory time for filing petitions expires, a survey of the referendum situation made Thursday by the Capital Journal discloses. In the S6 hours which remain Of ficials of the Taxpayers Equaliza tion League of Oregon, Marlon county unit, expect to secure the required 10,680 names on their pe titions to hold up the entire appro priation of IM1.173 made Dy tne (Concluded on page 10, column b) ASK ABOLITION Of TAX BOARD Abolishment of the stale tax com mission on the grounds the members had "violated their oatn oi omce, have not enforced all the laws, and have demonstrated their uselessness," was requested of the board of con trol Thursday by Robert Schucbel, of Clackamas county. Scheubel appeared before the board and stated he wished to pre sent some figures showing the cost of the tax commission, and to ask the board to abolish it. Governor Julius L. Meier requested him to put his request and charges in writing and present it to the board at a fu ture meeting at which he would be heard. The three-man tax commission was established by the 1929 legisla ture. Members of the commission are C. V. Galloway, chairman. Earl Fisher and John Carkin. The board Thuredty also rejected the proposal to lease the 300 acre Herron farm, adjoining the state penitentiary farm, for operation Dy the state. The rejection was based on the recommendations of James Lewis, superintendent of the peni tentiary, who opposed the lease. OPEN BIDS ON LAKE HIGHWAY Portland (IP) McNutt and Pyle, Eugene contractors, and C. R. John son. Portland firm, submitted the low bids Thursday for grading the two units of the Lake county stretch of the Burns-Lakeview highway. The Eugene bid was M.46S for the 34.6 mile unit No. J. The Port land firm bid (59.730 for doing 18.6 miles of construction on unit No. I of this highway. The shorter stretch lies mostly along Abert lake under the Rlmrock, Federal appropriations amounting to 1190,000 will be used for this work. The highway commission Thurs day Instructed Its engineer to make further study of a plan to change the location of the John Day high way between the towns of Prairie City and John Day. The commission announced It was ,not financially able to go ahead with work of widening the highway be tween Beaverton and Hlllf,boro, re quested by the Washington county court. The commission considered but took no action on the proposal to divert the highway at Oregon City from the main street and take It over thus eliminating the "bottle neck" condition there. Kidnaped Girl Slays Abductor Wabash. Minn. P) Roy Ashiey, 38 year old section worker of Beaver Dam, Wis., died Thursday, 24 hours after he was shot by Evelyn Brown, 15, whom he kidnapped from her Beaver Dam home. He killed her with the same gun with which he was shot. Aft.MKI) MKN IIF.I.D Arlington. Ore. (LP) Two armed men giving R. Russell and Mauris Bauwens as their names, and Seat tle as their address, were arrested here Thursday by State Tiallic Captain McMahon on auto theft charges. Holman Robs Referendum Of Signature H. H. Stallard. candidate for Unit ed States senator at the last elec tion and circulator of referendum petitions on the streets of Salem, was cheated out of one signature to the police bill petition Thursday forenoon through the Interference of Rufus Holman, state treasurer. Early In the forenoon Stallaid took his position at the corner of State and Liberty street. A large car carrying two men drove up and parked. The driver alighted and up on being accosted by stallard read ily assented to sign his petition. Hardly had he grasped the pencil, however, when Treasurer Holman hastily alighted and rushed up. "Here, you don't want to sign that petition." the second man ejacu lated. The would-be petition signer hesitated a moment and then was grasped by the shoulder by the oth er man and pulled back. "Holman, don't you know you have committed a felony in interfering (Concluded on page 10, columo 61 PONTIFF FILES NEW PROTEST Rome (Mh-Pope Plus spent an hour and a half Thursday discuss ing all phases of the crisis between the Holy See and the Italian gov ernment with the Marchese Pace 111, his attorney, who performed import ant work In negotiations which brought about the lateran, treaty. The papal nuncio also took part In the conference, and when It wa over It was disclosed that the pon tiff had delivered a second note to the Italian foreign office, presum ably a strong protest agalrt what he considers violation of the con cordat between Rome and the Vati can by dissolution of Catholic lay men's clubs.' This note, It was learned, wax de livered on Monday or Tuesday after Foreign Minister Dlno Orandl, act ing on advice from Premier Musso lini, had refused to receive the first note of Friday. The first note demanded apologies and reparations and the arrest and punishment of persons guilty of In sulting the pope. The second note, It is believed, repeated those de mands. LEGAL STEPS TAKEN FOR JAILING FALL Washington & All lfgal steps to send Albert Fall to .tall, save one, were comple ted Thursday. The District of Columbia supreme court was officially notified that the supreme court had refused to review the conviction of the former Interior secretary of taking a bribe from Edward L. Doheny, wealthy oil man. Only formal commitment to Jail remained. The notification consisted of a year in Jail and a fine of $100,000. District Attorney Rover plans to lrarn when Fall will come to Wash ington to begin the sentence. There Is a possibility that the prison sentence may be suspended because of Fall's age and 111 health. Fire Proof" Vault Approved by Board The state board of control wed nesday authorized the Immediate construction of the $35,000 fireproof vault on the state capitol grounds. Appropriation for the vault, as re quested by Secretary of Stale Hal E. Hoss, was provided by the 1031 legis lature. The vault will be underground, ad- lolning the main capitol building Permanent records are at the pres ent tune stored In the basement and other parte of the capitol buildings all liable to destruction by fire. rWnmFR i niiiL.1 i kikii TO TAKE WIFE OVERPACIHC Colonel Will Make Hop By Easy Stages by Northern Route Plans for Pleasure Jaunt Outlined to State De partment Washington (IP) Charles A. Lind bergh, who won fame four years ago by making the first non-stop flight across the Atlantic, la mak ing plans to fly across the Pacific with his wife and tour Japan and China, it was learned Thursday at the state department. Lindbergh outlined ttto plans to the state department, explaining he would cross the Pacific by easy stages, avoiding a long over water fngnt. His deiinite route nas not been worked out but he is expected to follow the northern route. Lindbergh told Under-Secretary of State William R. Castle he ex pected to use the low-wing mono plane in which he established a speed record across the United States. It will be equipped witn pontoons. Lindbergh came nere weaneauay and discussed his flight plans at a , (Concluded on page 11, column ) tim i a orninTV itLUurrju... FOR PANTAGES San Diego, Cal. (IP The story of how he arranged a party given at the exclusive El Cortes hotel last October for Alexander Pantages was told from the witness stand Thurs day by John P. Mills, former busi ness associate of the tneatniai man. Mills' testimony was permitted to stand In the record only over violent objections of defense attorneys. A business deal involving an M0. 000 note signed by Mills, Pantages and Jesse H. Bhreve, co-defendant with Pantages in the morals trial, brought the theatrical man to San Diego, Mills said. . Shreve. Mills said, Indicated he wanted some sort of entertainment for Pantages. so Mills called Olive Clark Day In Los Angeles to provide two girl companions at a cost oi 1200. Pan still likes to play around" Mills quoted Bhreve as saying. Mrs. Day and William Jobelmann then brought Lydla Nltto and Helen Livingston to San Diego for the par ty, Mills said. BAKER ORDERED TO REMAIN ABROAD Portland (IP) Portland's city commission Wednesday "ordered" Mayor Oeorge L. Baker to remain in Europe for a month longer than he Intended when he left with mayors of other cities as guests of Prance. The commission's object in keep ing the mayor abroad, the "man date'' said, was so Baker would con tinue to "do much to put Oregon on the world map'' and study eco nomic conditions. Flashlight At Seance Pierces Medium's Spell Detroit iPl Six "spiritualistic" seances failed to bring Oeorge N. Paquette the advice he sought about growing more hair on his head, so he became suspicious. At the next meeting Oeorge was there with a flashlight. "How about the hair tonic I'm us ing? Is It O. K.?" asked Oecrge of the "floating trumpet" through which advice was being Issued. He didn't like tht answer, so he turn ed on the flashlight. As a result. Mrs. Lillian Jeffs, the "spiritualist," was brought to court Wednesday on a warrant charging obtaining money under false pretenses. Oeorge said the light revealed Mrs. Jeffs, clad In black, waving the "floating trum pet' about and talking through It. He wants the tl he paid Mrs. Jeffs for advice returned to him. HATE IS Ct'T Lewiton, Idaho (LP) Interest paid by Lewlston and Clavkton banking institutions on time and savings de posits will be red icfd from 4 to 1 per cent on July I, It was announced Thursday. The announcement followed sim ilar action In Spokane.
