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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (April 7, 1933)
Medford Mail Tribitne The Weather Forecast: Unsettled with rain to eight; Saturday cloudy with i1ob1 rUlng temperature. Highest yesterday 63 Lowest this morn In it M Paid-Up Circulation People who pay lor their newspapeia ere the best prospects for the adver tisers. A. B. C. circulation la paid up circulation. This newspaper la A. B. c. Twenty-eighth Year MEDFOHU, OREGON, FRIDAY, APRIL 7, 19L53. No. 14. 1MB B 2 jE H mm Comment on the Day 's News By FRANK JENKINS IK THESE days of business uncer tainty, here ifi a figure you should find Interesting: Of all the farms In toe United States, only 43 per cent are mort gaged. Putting It the other way around, fi8' per cent of all the farms of this country are unincumbered In iny way. " HEBE Is another Interesting figure: The federal land bank of Wich ita, covering Colorado, Kansas, New Mexico and Oklahoma, reports that at tile end of January, 1933, B7'i per 'cent of the 30,700 farm loans held by It In those four states were In good standing with all sums due on them paid In full. Again putung It the other way around, only 4214 per cent of the loans held by Vila federal land bank were In default In ay way. IP THS ratio holds good for the country as a whole. It means that only 434 per ceit of 42 per cent or about 18 per cent of all the forms of the country are behind with their mortgages. FARMING, aa everybody knows, has been about as hard hit as any business In this country. If It Is true that only 18 per cent of the farms have mortgages that are In default. It Is a pretty fair showing for the business capacity of the farm ers of the United States as a whole. HEME Is another' Interesting state ment, which won't be news to anybody who. is reasonably Informed: Nine-tenths of all the business transacted in this country is done by means of checks that Is- to say, by bank credit. That statement, you see, has quite a bearing on the subjoct of Inflation of the currency... HTHV HrtM it? W Well, It's like this: If nine tenths of our business is done by bank check, why do we need more money in circulation? The answer Is that we DONT. What we need is more bank credit and bank credit, as - you know. Is based upon bank deposit"- About ten dol lars In bank credit, In normal times, Is based upon each dollar of bank deposits. In order to have more bank de posits, we need more CONFIDENCE. HOW are we going to get more confidence? To this write, It has seemed for tome time that the answer to that question Is this: By government guarantee of bank deposits. It might cost something to do that, but If it resulted In Increased bank deposits, with corresponding In creases in the amount of bank credit y available. It would be worth a LOT. W HILE we are on the subject of figures, here are some more that are Interesting: Prom 1023 to 1025, deposits In fed eral reserve member banks turned over 32 times pe' vear' From the fall of 1925 to 1829, when the the tor market crash came, turnover of deposits In these banks Increased to 45 times per year. In the last quarter of 1932, turn over of deposit in federal reserve member banks dropped to 16 times per year. WHEN business Is going good IT money turns over rapidly. When business 1SNT so'good, money turns over more slowly. That Is to say, we actually need less money In bad times than In good. Most people think of It at the l other way around. That Is because In bad times money 1 dearer and harder to get In other words. It takes more of what we have in order to get a given amount of money. AS YOU have read often in inis column, the wheat farmer who borrowed a thousand dollars say five years ago really borrowed a thousand bushels of wheat because back In those good days wheat wss selling on the farm at around a dollar a bushel. If he has to pay back his loan NOW, with wheat In t,he interior sell ing on the farm at around 15 cents a bushel, he has to pay back some thing like SEVEN THOUSAND bush- That comes hard. WE HAVE good brains in this coun try. Some day, perhaps, these brains may be able tto figure out a 4 Continued, oa Page Jea 39 LICENSES TO DISPENSE DRINK BYCITUOIIIL First Taste Accorded Thirsty in Early Afternoon 'Speaks' Shut Doors On Advent of Legal Potion Beer arrived In Medford this after noon, In all Its foaming, golden glory shortly before 2 o'clock. The first shipmen arrived as the Pierce Auto Freight truck rolled Into Snlder's dairy from- the Welnhard brewery, Portland, where It had stood In line since yesterday noon. A small ship ment also arrived from the north for Gold Seal creamery and -reinforcements from the south were crossing the Slsklyous shortly after 2 o'clock, bringing in foam from San Francisco. Beer went on sale at 2:30 o'clock this afternoon, and by dinner time tonight an almost adequate supply will be flowing from retailers and dispensers counters. It will cost 10 cents a glass. Delivery Speeded Workmen at local wholesale houses were moving at top speed at 2 o'clock checking In the new beverage and preparing It for delivery to retailers and dispensers, who started their cries for beer at sun-up this morning. Licenses were granted 39 dispensers, retailers and wholesalers by the city council at the special meeting last night and the ordinance, adopted Tuesday night was amended to al low entrance Into the beer' selling field of several persons originally excluded. Under the amendment adopted last night no person or firm, convicted of violation of the liquor law or crim inal laws of the state or nation dur ing the past three years, will be granted license to sell beer. Few other restrictions are Included In the ordinance, except- to control the moral standing of places where beer is to be handled. Ncnr-Hecr Causes Flurry 5d anxiously was'the'mWe-vflraeyerVoh side of the window. awaited that a barrel of near beer, rolled into the Brown Cafe cellar late yesterday evening, all but Inspired a riot. It was reported today. Several thirsty souls Interpreting the keg as the first arrival of new beer followed It Into the cafe and billiard hall on East Main Btreet, demanding that it be tapped. They were Informed that It lan t legal yet." This morning the keg was tapped and out flowed the "soon to be forgotten" near beer of bone dry days, to the great dis appointment of onlookers. Preceding the legalized beers un questioned arrival several speakeasies closed voluntarily last night, people who are within the Inner circle, an nounced this mornting. Thoso which haven t closed will be forced to do so In the Immediate fu ture as the drive of authorities gets underway to bring back Into licensed channels the profits, which have been going untaxed into the pockets of bootleggers and operators of home brew" Joints. Ilmne Brew Passes Only licensed firms will be permit ted to sell beer, and they, only the new beer. Home brew, the well known malt product, went out of the pic ture at 12 o'clock last night. With the easy flow of beer through regu lated channels, it Is believed, busi ness, formerly enjoyed by unlegalized houses will be so decreased that little force will be needed to accomplish (Continued on Page Eleven) Graphic Story by Afaron Survivor Shows Balloon A Wreck Before Crashing Terrific Lurch Loosened Girders Declares Member of Crew Testifying Before Congress Naval Committee WASHINGTON. April 7. (VPj Foil r hour before lie went to his death In the Atlantic on the Akron, Real-Admiral William A. Moffett said the air hip was much better than the Shenandoah the other air giant of the navy that went to disaster In Ohio. Richard E. Deal, one of three navy men who survived the crash of the Akron Monday nlj?ht. told a house naval committee today of a conver sation he had with the navy's chief of aeronautics shortly before the fa tal plunze of the ship. WASHINGTON, April 7. fav-Here'a what Richard E. Deal, navy enlisted man, told the house naval commit tee today about the Akron disaster, after he had held up a bandaged right hand to be sworn: On the takeoff of the U S. 8. Ak ron on the night of April 3. 1933. my landing station was in the bow of the ship. This position I normally take during flight when my section was "off watch. The takeoff was uneventful nd "Pipe down land t n g a t a t ions' was , founded a soon as we were at our rfw1rv1 altttnrtP. I I did not come on watcb uaul Wants Bigger Navy i r y I The new secretary of the navy, Claude Swanson, urged that, the United States navy be built up to the strength prescribed by the Lon don naval treaty "aa quickly as possible." (Associated Press Photo) NEAR BANKS' CELL KEEP JAILER BUSY Mysterious tappings In the court house last night after midnight kept Chief Jailer Fred Kelly alert and ex ercising vigilance. The tapping.-which sounded like pounding on concrete was first noticeable about 1 o clock, ana awakened Jailer Keliy." He went to the law library, directly under the cell holding U A. Banks. accused murderer of Constable George J. Prescott, on the theory that some one might be attempting to gouge" a hole through the wall. Later he went to Banks' cell and found the prisoner sound asleep. Hourly visits were made to Banks cell and each time he was unawakened. Tills morning. It. was discovered that the . tapping noise was . made by workman In putting new curtains In the courthouse, -and that It necessi tated perking holes with a chisel on Banks is now suirering from a sore throat and slight cold., A cold cure from the Jail medicine chest 1 given him. His prescription for met dlcinal liquor has not yet been filled Banks was reported as having had a stormy session with counsel yester day. It was announced yesterday by At torney Enrlght that Banks and his wife. Edith R. Banks,, would enter pleas of not guilty when arraigned Monday. Tills action was not unex pected, and does not preclude- Banks from later entering the plea of "not guilty by reason of insanity." It Is expected that Banks will offer a plea of self-defense, and that he was act Ing In "defense of his castle." It Is possible that Banks may use all three pleas. Courthouse reports say that Banks objects to an insanity plea because of his extreme vanity. State officials are silent on what evidence they have collected, or the number of witnesses they will call. They will contest an insanity plea. If entered, with evidence that Banks transacted business and performed national duties almost up to the time of the slaying, and they expect to show he "was a profound egotist, given to homicidal threats," and not insane within the Oregon laws cov ering the point. The matter of whether Banks and his wife will be tried separately or 1 together will be decided later. o'clock and then I was detailed to the telephone at frame 179 star board. Army Man Worried. -w,, , iv cuuuroi .r about 10:30 and then went In the navigator's compartment, and army colonel was there. "He seemed quite perturbed about the weajher and I assured him there was no cause for alarm as I had wit nessed electrical itorms of more in tensity in the Shenandoah, "At 11:05 I went back to my sta tion on 170 starboard. "I was there only a moment or two looking mown across the gang way when I noticed that every light ning flash seemed to center on the lr-s'?eed or radio antenna (I don't know which) that' i located at or O (Continued an Page Eleven) OLMSCHEID TAKES OAIH AS SHERIFF Man Named to Assume Schermerhorn's Post Re mains Silent Until Gov. Meier's Order Executed Certificate of appointment by the governor of Walter J. Olmscheid as sheriff for a 90-day period, starting next Monday, Aplrl 10, was received this afternoon from Salem ny tne county clerk. In accordance with the governors orders. Olmscheid will assume the office Monday, after taking the oath of office and qualifying. The order of suspension Is based upon three points in the findings of Judge W. M. Duncan: That Schermerhorn was aligned with a faction under strong suspicion of ballot thefts; That he was under the Influence of the leaders; And that, because of this, he failed to. act with firmness and clerlty In the maintenance of law and order, particularly In reference to the bal lot thefts ..Steps are under way for the turn over of the cash In t.he sheriff's of fice, up to the close of business to morrow night, under the direction of C. T. Haines, auditor of the county books. Attorney Frank J. Newman, repre senting Schermerhorn. said this morning that he had no announce ment to make as to future plans or legal action, if any. but that a de cision would be reached later. Olmrteld said today that his ap pointment was a surprise, and that he would make no plans or appoint ments until after inducted Into of fice. The naming of Olmscheid met with general public approval, though a few thought it should be somebody else.'"" Ofmccd, who has taken no active part in local politics, is thoroughgoing, conservative and quiet type. He has been adjutant of Med ford post of the American Legion for two years and Is associsted with C. T. Tengwald In the Insurance and realty business. Oetmsceld has lived here four years. Before naming Olmscheid. Governor Meier made a quiet investigation of his qualifications, temperament and experience, and endeavored to name a neutral man, as far as possible in the turmoil. Ousting F.xpecred. The ousting of Schermerhorn was not unexpected, and was forecast by the evidence submitted at the hear ing. In addition, the governor re ceived a report on evidence not re vealed at the hearing. Schermerhorn, a resident of this county for nearly 40 years, s well (Continued on Page Eleven) Everyone who has daffodils, or other spring flowers la asked to co operate with the Medford Oarden club tomorrow by bringing either single flowers, bouquets or sprays and branches of flowering shrubs to the Chamber of Commerce between 8:30 and 9 o'clock In the morning. Exhibitors are asked to furnish their own containers. Mrs. Lewis Ulrlch, Mrs. H. P. W. Spilver. Mrs. Oeorge Phythlan. Miss Helen Bullls. Miss Ann Livingston and Mrs. L. Bundy will be In charge of the display and visitors are uikk1 to view the flowers at any time after 9 a. m. to 9 p. m. It la hoped by Mrs. A. E. Reameu and her committee that everyone who has especially fine flowers bring an exhibit of them tomorrow, especi ally those who have fine daffodils and flowering shrubs. TO KLAMATH THIRSTY KLAMATH PALLS. Ore.. April 7. (AP) Beer was served In Klamath Palls thla morning by one pool hall T-4t m m T-V... .nlnmenf n 1 0O gallons was brought here from San I pranclsoo by plane at 7 a. m. A truck- loaa is one in av o p. m. ww"? a carload at 10 o'clock tonight from the same city. POLICE SEARCH FOR MISSING SALEM GIRLS SALEM, April 7. f AP) Police were searching today for Lillian and Viola Ripley. 13 and 15-year-old daughters of Mn. Gertie Ripley of this city, who reported them missing since yes terday morning. The younger (tlrl was wearing a long blue cont and the elder one green coat. No Discord Here Rumors of differences between Hoot Gibson and his wife, Sally Ellers, were spiked when the couple appeared together at a Hollywood dancing party. (Associated Press Photo. SALEM BEER GONE SALEM, April 7. (API A broken pump extended the sale of beer until 13:15 o'clock here this noon st Kahle'a cigar store, at which time no arrest had been made for Its sale. The supply of 32 gallons lasted about an hour, but more will be plared on sale cither there or at some other places here this after noon.. A Jubilant, but orderly crowd, Jos tled for positions while awaiting ar rival of the "golden stream."- A sign "We Are Backing Up Our President," was displayed In the store: The pro prietor said It was ludicrous If Salem, the center of 'world hop production,' should ban the salo of 3.2 beer. SHORT WEEK BILL E WASHINGTON, April 7. (AP) Re consideration of the senate's action in passing the Black 30-hour eek for industry was moved In the senate late today by Senator Trammel Pla.), thereby holding the measure from going to the house until action on the motion. Trammcll did not Htnte his reason's on the floor, but later told news papermen he objected to the bill pro hibiting domestic manufactured 'ar ticles from moving In Interstate com merce if mado by labor working longer hours and not at the same time applying to foreign goods. BOOKS APRIL 1 8, VIEW LONDON. April 7. ( AP) The gov ernment's Russian embargo bill went to the house of lords today after re ceiving final approval of the house of commons. It Is expected to become effective April 18, but the government made it clear It hoped never to have to use Its provisions. BILL COMES MONDAY WASHINGTON, April 7. (AP) A bsnklng reform bill based on the principle of the Olass banking meas ure and carrying a 100 prr cent bank deposit guarantee plan will be Intro duced by Chairman Steagall of the house banking committee Monday. The measure's principle was under stood by the Alabama Democrat to have the approval of the administra tion. PINCHOT BALKS VOTE ON DRY LAW REPEAL II ADRTRRTTPrt Pt Anril 1 fAPi j Governor Plnchot today vetoed the bill which provided for a state con vention to ratify repeal of the 18th amendment. The governor said the measure was not a fair bill. JANET GAYNOR AND WRITER HUBBY QUIT LOS ANOEIES. Aplrl 7. (AP)- Janet Oaynor, diminutive movie act res. was granted a divorce today a! from Lvd'll Peck, screen writer, for- jnely of Oakland, APRIL 23RD WILL Chamber Plans Monster Pa rade to View Scenic Won der in Winter Setting Winter Sports Promised Definite plans are being perfected today by the Chamber of Commerce for the staging of a monstrous cara van to Crater Lake on Sunday, April 23. it was announced by President W. 8. Bolger this morning. For the past several weeks the Chamber of Commerce has been bending Its ef forts toward the early opening of Crater Lake from this side and by arrangements made with the state commission a snow plow has been working for practically a week open ing up the highway from Union Creek toward the park entrance. Latest reports are that wo in had progressed five miles by last Wednesday night and It is confidently expected that the complete road to the park en trance will be opened some time next week. Earlier Opening Chamber of Commerce officials are happy over the outcome of these ef forts, as It means that the entrance on this side will be opened very much earlier than has been Uhe ex perience of the past few years. It Is reported that the caravan would have been arranged for Sunday, April 10. but on account of the fact that lt will be Easter Sunday the Chamber of Commerce has decided to postpone ! the trip In order not to Interfere with the religious services which will be held In the city on that day. While the only arrangements when have so far been made have been to officially name the date and -decide to promote a caravan, it Is expected that the vertous clubs of; the city will be organized in order to promote competitive winter sports, and many ether novel and . entertaining ideas will In all probability be Injected into the program. To Be Largest Caravan No guess can be made as to the number of cars w.hlch will partici pate In the event, but the Chamber of Commerce is determined to make the caravan the largest which has ever left Medford at any time. Many splendid publicity features will be worked out within a day or two and, together with other phases of the car avan, will be announced as soon as arrangements are completed. The opening of the road at this early date will be of tremendous ben efit to local merchants as the sum mer resorts will be able to open up earlier and business wlt.h Medford merchants will naturally result. The early opening of the road will also have a tendency to promote earlier tourist travel and agencies and oth ers interested In the tourist Industry will be advised that here will be no need to delay a trip to Crater Lake this year. The Chamber of Commerce hubes to bring about the co-operation of u rants Pass and Josephine county, and it Is believed that a large num- Der from our sister city will Joint the KLAMATH PALLS, Ore., Aplrl 7. (AP) The Klamath entrance to Cra- (Contlnued on Page Eleven) Thump of Bung Starter Heralds Return of Beer For Parched Americans Jubilee and Jollity Widespread While Foes Voice Warnings Against Excesses Wide Variance in Price Noted (By the A.smlatrd Press) The thump of bung-starters on beverage back to vie American gushed In territory populated by about 70.000,000 Amerlcana'ai 19 states and the District of Columbia lifted a ban more than 13 years old. duoiiee ana jouuy were wiaespreaa among friends of the beverage; Its foes voiced criticism and warning. rive minutes after beer became le gal at midnight, a big truck, gay with festoons, rumbled to .the serv ice entrance of the White House, bearing two cases a brewer's gift to the president. Mr. Roosevelt, who .had retired, has Indicated he will give the beer to friends. K Near' Brer head On Broadway, New Yorkers paraded behind a hearse lettered "Near Beer la dead," while a band In bright Bavarian uniforms played dirges and drinking songs. "Surprisingly good." said Chicago beer connoisseurs as they celebrated "New Beer's day." While 100.000 cases and 200.000 barrels sped to points of ' delivery there, cheering throngs crowded downtown streets, hotels and eating places. German societies In at. Paul, where b?er flowed freely at midnight, toast (sgon up to Mr. toim' FUtfe e-J Navy Assistant i-r Henry Latrobe Roosevelt, distant cousin of the President, was named assistant secretary of the navy. Three Roosevelt hsve preceded him In the post. They were Theo' dore, Franklin D., and Theodore, Jr. (Associated Press PhotA BALLOT THEFT TO New arrests and developments, and more guilty pleas are forecast In the bnllot theft slid Banka murder cases of this county, at an early date, aa the concluding chapter In the legal proceedings, as the result of a thor ough Investigation launched before the ballots were stolen and destroyed. The authorities also plan to take action against rumormongers and threat makers. Public .proof will be demanded of the first named. Two meri Including one indicted for bal lot theft are purported to have ut tered veiled threats. They will be hailed Into court, and asked "what they meant." Most of the rumor mongers operate In the rural districts. It Is also planned to place a check upon agitators who travel about the countryside, fanning anew the fires of prejudice. Officials decline to reveal any of they plans, except that further, ac tion will probably be taken. Incidentally, when time allows, a thorough Investigation will be made of bondsmen relative to their quail flcattons. In the case of Prof. C. Englehardt, documentary evidence unearthed will be presented the 1m migration department for further In vestigation, and action. Returns have been received by the officials from the national bureau of fingerprints at Washington, D. 0., on some of those accused In the bal lot thefts. Most of the lot have no previous record. The government rec ords show that one has been involved twice before on burglary charges. His Identity was not made public, , cept that he was one of the secondary "master minds" of the hunglesome ballot theft plots. ' NOTRE DAME PRESIDENT BELIEVED NEAR DEATH SOUTH BEND. Ind.. April 7 (AP) The Rev. Charles L. O'Donnell, O. S. C, president of the University of Notre Dame, stricken with a throat infection remained In a aerlous condi tion today, after .receiving the last rltea of the Catholic church. countless kegs drummed a long-lost scene today. ' Lawful 3.3 per cent beer ed President Roosevelt and "happy days." A funeral march 'Ushered spiked bee.- Into oblivion. Mencken Finds ft Good While H. L. Mencken, author, Icon oclast and beer expert of Baltimore, waa tasting the new brew and pro nouncing It "pretty good: not bad at all," Mrs. Ella A. Boole, national head of the W. C. T. U declared the beer .violated the 18th amend ment and said: t, ''When the wet hysteria will have pasted, the American people will awaken to the fact that the liquor traffic cannot be controlled because of Its Inherent nature." Alfred E. Smith, old foe of prohi bition, found himself the center of felicitations. Brewers hastened to send him their first cases of beer. One dispatched six Clydesdale horses ! to draw a four-ton brewery sTake CoaUnu4d oo ftf .fiy! E NEEDED IS HINT FOR ROOSEVELT Bankers, Insurance Heads . of Conservative Type Talk Mild Raising of Prices and Refinancing Operations . By IMri, MAI.LOV. Copyrighted hy Mct'lure Newnpaprr Syndicate. WASHINGTON. April ".-Some con servatives have been whispering in Mr. Roosevelt's ear that what w need -right now Is a little more mild Inflation. Believe It or not. the subject was taken up at the White House by cer tain bankers and Insurance company heads who called recently. They came out with a beguiling announce ment that they talked about railroad, but dropped not a word about the most Important subject of their visit. They told the president they thought three billion In baby bonds could be sold In the country at thla time on a prosperity restoration wave. They said Mr. Roosevelt's popularity could put It over. The money thus taken out of hoarding could be used lor puniic works. Some promised to handle lh nurm. Ing refinancing of llbertv bond, ml 2i or a per cent. That would man a saving to the government of IV, or lyt per cent In Interest charges on two billion dollars. It sounded fairly good. Mr. Roose velt promised to think it over. That Inside development occurred about the same time that the aen ate agriculture committee went whole nog ror inflation. But that la an other story, The real reason the committee voted IS to 0 to. call on Mr; Roosevelt u ru ing. Inflation was to s(iow their lack (Continued on Page Throe) PORTLAND, April 7. (API O. A. Brand of Roseburg, orchardlst 'and former Douglas county representa tive, and Oeorge B. McLeod. Port land lumberman, were appointed to the state board of higher education last night by Governor Meier. Brand succeeds Albert Burch of Medford. who resigned several months ago, and McLeod succeeds Edward C. Pease of Tile Dalles, whose term , ex- ' pired. . Brand is a brother of Circuit Judge) : Brand of Coos county and has for yen been prominent In affairs of the state. Pendleton Beer . Lasts Briefly PENDLETON. Ore.. April 7. (AP) All Pendleton'a beer was In the hands of private consumers or eating houses by 7 ft. m. today and moat of It had disappeared within a few hour thereafter, leaving Pendleton, with one of the two breweries- in Oregon, practically "beerless" on the first day of legalized sale. WILL ROGER? BEVERLY HILLS, Cal., Apr. 6. Loving aviation like I do and believing in it like I do, this loss was a terrible jolt. My main friend among them was Admiral Moffett. We had been to two disarmament confer ences together. I could always go to him and got a little inside news on what the conference was trying to do. lie was a grand nul. Moffett was the "proi'cller" of naval aviation. Now don't fly off and say that aviation is not safe or not practical. There is certain things nature can do to you whether it's an earthquake in California, a flood in Mississip pi, a tornado in Ohio or drouth in Arkansaw. When na ture enters into it, don't criti cise. Yours, r
