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The Weather
forecast: Occasional nln to
night and Thursday; uttle
change In temperature.
TEMPERATURE
Highest yesterday , 39
Lowest thla morning - is
Medford
Tribune
Thirtieth Year
Full Associated Press
MEDFORD, OREGON, WEDNESDAY, JANUARY 8, 1936.
FuU United Press
No. 246.
ji
mm
nil id n
i .
' ms I rules"
malm G
By Paul Mallon
(Copyright. 1836, by Paul Mallon.)
WASHINGTON, Jan. 8. Always
serene, Chief Justice Hughes was vex
ed when the antl-AAA decision waa.
handed down. He
leaned tor ward
further than nec
easary to nod
grimly toward
Justice Roberts
as a signal to
start the deci
sion. During :t,
he locked h 1 s
Jaws and fixed
his eyes with
equally extraord
inary determina
tion.
PUI MALLON
It waa so no
ticeable that court lawyers speculated
whether Mr. Hughes had read the
full page display of his legal opinions
In a local newspaper a few days
earlier. Included therein waa an
opinion he one expressed aa a law
yer In a legal brief. The delicate but
obvious point presented by mo cita
tion waa. that Hughes would be re
versing himself if he overthrew the
AAA.
Court lawyers also wondered If Mr.
Hughes had hevd the same Inside
yarn about It as they did, to-wlt:
That the old brief was dug up by
an eminent lawyer-economist In Wil
liams street, New York, and brought
to the highest of non dealers Here,
who planted It In a spot where all
could see. Including Mr. mignea.
Flippant rumoro were spawned when
the aupreme curt failed to attend
the house session at which President
Roosevelt spoke. One, now current,
la that the court was not Invited,
The inside facta are these:
House Doorkeeper Slnnott went to
the marshal of the court and asked If
the court wanted to attend In a body
He also said he would find seats for
any Justices who wanted to attend
unofficially. Apparently the court
wanted nothing, because no applica
tion were received.
The court frequently attends the
opening of congress and the delivery
of presidential messages. It is not
a rigid custom, but a aufflclently es
tablished one to cause comment when
It Is not followed.
Uppermost new dealers expected to
be reversed on AAA, but not aa re
versed, as they were. What they an
ticlnated was Invalidation of the pro
cessing tax, leaving the way open for
an easy substitute. Tney were uoor
ed when the court cut out legal
ground on which the whole new deal
was built. A coupie 01 lorai nuuwi-
Itlea were with the president 30 min
utes before the decision was an
nounced. He had no tip on the de
eialon then.
That waa s'o what waa in hlsunlnd
when he transferred the AAA to the
permanent budget in hla budget mes
sage. The idea was to make it more ,
constitutional.
Current mention ol Justice Roberta'
I Continued od Page Pout.)
DEEP SNOW
IN!
KLAMATH TALLS. Jan. 8. (AP)
Winter, striking today with Increased
violence, hid south central Oregon
under a deep blanket of snow. 8now
has fallen Incessantly since early this
morning.
SIDE GLANCES
by
TRIBUNE REPORTERS
O. H. Nelson remembering the time
he got money orders totaling 9113.50.
Intended for another O. H. Nelson,
but admitting h returned the dough
to the rightful owner.
H. D. Kern, while aiding in project-
lnff movies st the h. last nigni,
nearly doing Steve Brodie out of
the balcony when he tripped on the
steps.
Homer Tlatt disregarding the rain
sauntering through it without a hat
or coat. Ed Brown, two steps oe
h!nd. had no hat but an ample bum-
berschute. while Sam Ooldstein slap
ped along In the rear with no pro
tection but a tight vest.
Cleorpe Lounsberry blinding the
other pedestrians on the Main street
DTPmenade with the brilliance of his
bright red coat.
Cleo Brenner standing by the stove
at Blcelow a and Illustrating 9 con
versation with dangerous sweeps and
jab of hla pipe stem.
Jchn CSmltty", Smith back from
-X,
Oakland Tor a week s stay In bed to; adapt itself 1o the long range educa
rest up from arduous labors. Arriv- t-onal and aortal needs of the rapidly
Ing several days o. ha hardly been I swelllnc army of unassimiletod
in bed at all tine. 1 youth."
PATH FOR
DEBATE
Announcement by Steiwer
Brightens Prospects of
Favorable Action in Sen
ate After House Ballot
WASHINGTON. Jan. 8. (AP) I
House consideration tomorrow of
cash bonus legislation was assured
today.
The rules committee gave the
right of way on the floor to the
full payment bill backed by the big
three veteran organizations. It will
be called upon tomorrow and allows
four hours of general debate. ,
The rule was granted shortly after
the ways and means committee urged
cash payment aa an essential part
of the recovery program.
But when Chairman Doughton (D.,
N. C.) of the revenue committee was
asked by Representative Cox (D.,
Ga.) of the rules group if the bonus
bill approved by the committee .was
"an administration proposal with
the endorsement of the president,"
Doughton replied.
'Not to my knowledge. I wish It
were."
Prospects for the veterans' organi
zation bonus bill In the senate
mounted with an announcement by
Senator Steiwer (R.. Ore.) that he
would be willing to accept the plan
If this would expedite favorable ac
tion.
Steiwer, co-author with Senator!
Byrnes (D 8. C.) of a slightly less
liberal measure, made the statement
After a conference In the office of
Senator -Clark D Mo.), at which
Byrnes and leaders of the veterans'
organization were present.
Byrnes, an administration con
sultant. snid afterward the group
decided not to press for senate com
mlttee consideration of the bonus
until after the house acted.
Representatives Vinson- (D., Ky.),
Patman (D., Tex.), and McCormack,
D Mass.) the co-sponsors, told re
porters they "definitely Intend to
oppose any but committee amend
ments to the bill on the floor."
"We are going down the line with
this bill,' Patman said. "If we begin
accepting amendments, we must
wreck It."
Spnaker Byrns said at his press
conference he thought the bonus
could be disposed of Friday.
PAIR BATTLE OVER
TOWNSEND'S PLAN
Walter Coulter, of the Elliott Creek
district, near the Blue Ledge mine.
Is held by Slsktvou county author
itles upon a complaint filed by R. S.
McCloy, aged prospector of the dis
trict, charging "assault with force
likely to produce great bodily harm,"
as a climax to an argument over the
Townsend Old Age pension plan a
week ago.
McCloy alleges that he was beaten
so severely by Coulter, that his Jaw
waa broken.
The alleged assault occurred In
Siskiyou county, Calif., a' short dis
tance from the Oregon-California
state line.
Coulter was -taken to Treka, Calif.,
last Sunday, by Deputy Sheriff Mar
tin Lange of Siskiyou county, who.
to serve the warrant, travelled Via
Jacksonville and the Applegate.
The preliminary hearing of the
caie was scheduled for this week.
Vision CCC Development
Into New Type of School
By John Lear
Associated Press Staff Writer.
CHICAOO. Jan. 8 (AP) A sociol
ogist looked today at one unchal
lenged Item of the New Deal the
Civilian Conservation Corps and
saw In It the outlines of a new type
of public school.
Amid the wreckage of the AAA and
the NRA. Prof. Arthur J. Todd of
Northwestern university vlsloned the
CCC as a lasting monument to the
social philosophy of the Roosevelt
administration.
The professor, in an interview, pre
dicted development of the CCC unit
a a flexible educational agency to
fill the gap between high school and
col lege.
He called upon educators to "ham
mer out promptly such a modifies-
tlon" of the CCC campa "as win
Mae West Leads
Film Actresses
In Wage Column
WASHINGTON, Jan. 8. (AP)
Salary figures made public by
congress revealed several women
did pretty well by themselves in
1934.
Mae West's pay checks amount
ed to 9339.166.6S.
Mary Pickford, 852.750.
Claudette Colbert, 985,000.
Marlene Dietrich, 9145.000.
Sylvia, Sidney, 9110,583.
Constance Bennett, 91 76,188.
Joan Bennett, 936,976.
Miriam Hopkins, 971,145.
-Grade Allen, together with
George Burns, 988,791.
All the women are actresses.
IN CORPS SHI
CT
l l
Seven Medford district CCO com
panies will be disbanded tomorrow
when two special trains leave here
with four second corps area compa
nies and men of three ninth corps
companies are distributed among oth
er companies in this corps area. They
will be replaced soon by five mid
western companies.
One special train will leave Rose
burg with the men of Co. 1311. now
at Sltkum, and Co. 823, Camp Steam
boat. The train will be commanded
by Capt. Harold L. Flint, Steamboat
commander, and will proceed to Camp
Dlx. N. ).. where the men will be
assigned to other companies.
The other special train will leave
Medford with the men of Co. 324,
Elk Creek, and Co. 290. Applegate. It
will be commanded by Capt. Ross D.
Guy, Elk creek, and will also proceed
to Camp Dlx.
The three ninth corps area com
panies to be disbanded are Co. 1919,
a veteran company now at Clear
Lake; Co. 1982, a California Junior
company of Gasquet; and Co. 964, an
Oregon Junior company of Wlmer.
Of the Clear Lake men, 60 will be
transferred to Camp Blow Down.
Idaho, In the Fort George Wright
district. They will be taken there
by truck train commanded by Lieut.
Lin Sb!ds. Ninety-Beven veterans
will be transferred to tlit Sacramen
to, Cal dlstriot. Oi these. 36 will
be assigned to Camp Mount Tamal
pals and will be accompanied by
Lieut. Trygve Bogcvold. Thirty-nine
will be assigned to Camp Mount
Diablo and will be accompanied there
by Lieut. Buford E. Boyd. Thirty
three will be assigned to Camp Lake
Chabot and will be taken there by
Lieut. Robert H. Colwell.
The enrotlees now at Camp Gasquet
are being transferred to California
companies. Ninety are being sent to
the Sacramento district. Of these,
45 will go to Camp Bradley and will
be taken there by Lieut. Alfred H.
Hopkins. Forty-five will go to Camp
Elk Creek and will be accompanied
by Lieut. Henry A. Barrls. The bal
ance will be assigned to Camp Oak
Knoll and Indian Creek In the Med
ford district.
Thirty enrollees of Camp Wlmer
will be sent to Camp Nysaa, Ore.. In
the Boise. Idaho, district. They will
be accompanied by Lieut. Andrew J.
Hemstreet. Others of camp Wlmer
will be transferred to Camps Brad
ford, South Umpqua Falls and Bly
In the Medford district.
PORTLAND AIRMAIL
GROWS DURING 1935
PORTLAND. Ore., Jan. 8. (AP)
Portland outgoing alrmal poundage
Increased fll.04 per cent In 1035 over
the previous year, Poatmaster E. T.
1 Hedlund reported. The 1B3S total
was 183,700 pounds.
The curriculum, he said, should be
a balanced combination of manual
labor and study, the "schools" should
be set up In cities as well as rural
areas, and "students" should include
girls as well as boys.
. Some new Instrument ol education
must be set up to care for "some
ft .000 ,000 boys and girls between the
ages of 10 rind 25 who are neither go
lng on fov higher education nor yet
absorbed Into Industry." he asserted.
He suggested the CCC "schools'
oould Accomplish "enormous jobs nf
public improvement." such as public
orks, alum clearance, social work
"which should not unfairly compete
with private business.
He advocated that jobless young
men and women be enrolled regard
less of whether their families were on
telief. and that the period of service
be lengthened to prevent young peo-
j pie from slipping back into (heir old
t unsatisfactory sjirlrofuacfit,
ILC
SPEED HUNT FOR
AAA SUBSTTUTE
Five Tentative Plans Drafted
by House Agriculture
Committee Welcome
Suggestions From Anyone
WASHINGTON, Jan. 8. ( AP)
The AAA formally announced to
night that It held the aupreme
court'a Hoosac Mllla decision oiu
not Invalidate the marketing agree
ments order and license provisions
of the adjustment act.
By Ji;HHV GRUF.NE
Associated Press Staff Writer
WASHINGTON, Jan. 8. (AP) New
Deal leaden speeded efforta today to
find a new farm program.
President Roosevelt and Secretary
Wallace met at lunch to discuss what
to do about AAA's supreme court de
struction. The house agriculture committee,
summoned to an unexpected meeting
by Chairman Jones (D.. Tex.) one
of those who has conferred with Mr.
Roosevelt directed the drafting of
five tentative plans for Its consider
ation. They were:
1 The domestic allotment plsu.
a The export debenture proposal.
3 Appropriations to various atates
on condition that such states estab
lish an adjustment program similar
to tha AAA.
Appropriations for a larjd leasing
program.
5 Conditional appropriations to
Individual farmers who comply with
the conditions.
Hone to Find Way '
"We feel." Jones said after the
closed session, "that waya can be
found under the limits set out li
tho decision to fashion a farm pro
gram that will at leas. In a -measure
offset the dlssdvantagea which the
farmers have under the national tar
iff system."
The chairman said he am not Know
when the committee would get down
to work on the tentative proposals,
but emphasized It would be aa quick,
ly as possible.
Asked If any or tne suggestions
discussed today originated at the
(Continued on Page rhree)
ALLOWRATTHOIST
ON FREIGHT EAST
WASHINGTON, Jan. 8. (P) Over
ruling pleaa of northwestern shippers,
the Interstate commerce commission
today allowed rate Increases on freight
shipments from Washington and
ho via Bleber, Cel., to eastern ter
ritory. The commission authorized the
Great Northern railway to cancel
present rates of I.3S a ' hundred
pounds and substitute a 11.60 rate.
Originally proposed last August, the
tncreaaea were ordered held in abey
ance after northwestern fruit grow
ers, ahlppera. civic and commercial
organizations protested.
The new rates are effective Janu
ary 14.
797 ENROLL FOR
mi
U'J
GRANTS PASS, Jsn. 8. P Seven
hundred and ninety-seven have reg
Istered In the free Orsnta Pass gold
mining school sponsored by the stat
board of vocational education, super
Intendent Karl Ladewlg announced
today.
Although a small WPA crew has
done some worn on the county fair
grounds, site of tha school, schedul
infr of classes must await Informstlon
"n awsrding of contract, Ladewlg
said.
At Medford. 187 were registered sep
ratelr for the school. All others
signed up here.
ORDER NAM DRILLS
Hi the Awlntel Pre.
Orders for new snd Impressive
British and Prench navsl movement.
in and near the Mediterranean co
incided today with unoonflrmea
Ithloplsn claims of a northern bat
fie victory.
As Prnch authorities disclosed
that 93 warships of tha first and
second squadrons will '.alte a Medi
terranean crulM. the British recalled
four warsh!l: from those water.
and announred that four even btg
wr men o r would leave home
soon on a .r ramiire "spring cruise'
aiopi witi t dci'jojer loUlifc
'Loveliest' Actress
Jack Gardner, artist making, por
trait! of stars described blonde,
blue-eyed Anita Louise (above) at
Hollywood's most beautiful actress
praising the "elusive, fragile qual
ity" of her features. (Associated
Press Photo
ROOSEVELT'S TALK
TO DEMS TONIGHT
OPENS
To llroadoast Speech.
President Roosevelt's address to
Democratic party leaders at the
Jackson Day dinner In Washing
ton, D. 0.. will be broadcast over
the major radio chains as well aa
several short wave stations at 7
p, m. IPit-T) today. .
WASHINGTON, Jan. 8
- (AP)
converged
over the
President
Democratic party leaders
Washington from all
country today to help
Roosevelt formally launch his cam
paign for re-election tonight at the
national Jackson Day dinner.
As he addresses similar gather
ings from cosst to ecaat from me
banquet table here at 10 p.m. (EST)
the president will be surrounded
by his cabinet, most Democratic
member, of the senate and house,
member, of the national committee
snd other prominent party officials.
But almost as conspicuous aa tne
list of guosta will be the namea of
absentees. Alfred E. Smith, once the
Democratic presidential candidate,
will not be there. Probably John W.
Davis, another one-time party nom
inee, will not. Missing will be other
names that have figured prominently
at former Jackaon day dinners.
Smith and Davis are members ol
the American Liberty league, whlcn
reiterated Its chargo today that
Democratic Chairman James A. Par
ley, in selling tickets to tha dinner
to federal office holders, violated the
law.
In a atatement, the league char
acterised as a "bed-time story" tne
assertion of the Democratic national
committee that Parley had nothing
to do with soliciting csmpalgn
funds by sale of tickets.
Parley was quoted by the league
addressing stata president, of
Young Democratic clubs and urging
them to price the dinners high
enough to produce revenue for the
Democratic paty. Several or .nese
presidents, the lesgue added, are
federal office holders.
The dinner tonight will be fol
lowed tomorrow by a meeting of the
national committee to select the
time and place for tho national con
vention. Philadelphia and Chicago
are the leading contestant,, but
there were report, of other bids
from Atlantic City or San Fran
cisco.
More than 1800 ticket, for tne
dinner here have been sold at o
each.
PRIESTTOTST
FEDERAL RESERVE
WASHTNOTON. Jan. . (AP)
Psther Charles E. Coughlln told re
porters today he intended to file suit
against the fede-al reserve Doaro at
tacking the constitutionality of the
1013 federal reserve act and all Its
amendments.
The Detroit radio priest aald he
had two of the "best known men'
In the country attorneys. He de
i:ned to name them. His statement
wo md shortly after he had talked
with President Roosevelt in a SO
minute visit he described as "purely
social."
"Congress has the tight to coin and
issue money," the priest told news
men. "I can't find anywhere in the con'
alitution that conress may delegate
Uiat right without restttcUoas."
SAYS ADDED LAND
PARAIiiT NEED
Commission Votes to Build
Main Unit With Funds
Available Legislature's
Site Limitations Scored ,
SALEM. Jan. 8. (AP) One main
capltol building will be constructed
with the aa.500,000 appropriated oy
tho state and letkrM government for
Oregon's new structure, the state re
construction commission today voted,
as the first unit of a group plan for
the future.
In consideration of the steps neces
sary to conduct an architectural con
test the pertinent Issue of more land
to be added to the old site was re
vived, with the.. need for additional)
ground definitely stressed by Carl F. i
Oould. architectural advisor to the
commission.
Consideration of obtaining more
land under the legislative act, how
ever, was tabled until an opinion by
Deputy Attorney General Ralph
Moody could be obtained.
Oould outlined his program for the
architectural contest by emphasizing
a definite decision as to where the
capltol would be built and that If
the commission could obtain more
ground, where that ground would be.
He declared the present site insuffi
cient. In his view, for an adequnte
building which would permit for ex
pansion. This Issue brought an open discus
sion by all members, most of them
severely criticizing the legislature for
the "regrettable mistake" of limiting
the site to the old location. If the
law confines them to that site. The
belief was expressed, however, that
the commission had no choice but to
proceed on the limited space outlined
by the former site.
f.
SEATTLE COPS, VETS
SEATTLE, Wash., Jan. B.f API
Mayor Charles Smith, with the aid
of aproxtmately 100 stalwart war vet
erans and a special police detail,
credited themselves with "one up"
today in a bruising, riotous battle to
prevent the opening of a so-called
communist college here.
Faces were out, bodies bruised
heads cracked after promoters of the
"college;1 started to conduct classes
In a downtown building last night,
The sponsors of the school opened
classes despite warnings from Mayor
Smith and Chief of Police W. B,
Kirtley. They previously had defied
the mayor, challenged him to prevent
them from conducting classes In
communism. I
The veterans, wearing American
Legion and Veterans of Foreign Wars
buttons, converged on the class i
rooms after a special detail ol police
officers quietly moved In on the
school and arrested six persons and
carted them to the police station in
patrol wagon.
'Students' and "faculty" members
were routed In a big way after they
refused to heed the vetcrana' warn
ing to disperse.
Approximately 80 students1 attend
ing the opening class resisted and
the veterans, whipping clubs from
their pockets, started their cleanup.
A fierce hand-to-hand battle en
sued. The veterans, students and In
structors rolled over each other down
hallways. By the time the head of
the stairs was reached tho veterans
were In command.
Rule Over America Seen
In Supreme Court Hands
WASHINGTON, Jsn. . ( AP)
Senator BlacX D.. Ala.) conienoeu
today that the aupreme court AAA
decision meant thst "five men now
rule 120,000.000 people."
Asked whether h, shared the be
lief of some legislators that numer
oua other new deal statutes also
are listed for the Judicial ,xe. Black
said grimly:
"Under this decision they have
left themselves free to decide all
legislation in any manner they see
fit. They have thrown away the
charts."
'While the d,cilon appear, to
he , limitation of the powers of the
federal government, It la In fact an
epnr,lon," Black emphaslwd
He said that the court had tor
tha first time derided on the doc
trine of "Implied" powera aupporwd
by Aleisnder Hsmllton and opposed
n Thomss Jefferson, and had In
i rrt -gone even beyond the Hamll
you tucory,"
Page "Sherlock!"
Story In Tribune
Finds Stolen Car
Of course, the Mail Tribune
can't guarantee to recover your
stolen car in a few hours in every
case, but It feels quite proud of
Its part In flndlug Harold U.
Mitchell's machine, which had
been missing since Sunday.
Mrs. Amy Fader, who lives at
116 Willnmette avenue, was read
ing the Mail Tribune last evening
about 7 o'clock, wherein was
printed a story regarding the
missing atito. Tho description
tallied ctOACly with that of a car
which had been parked In front
of her home since 10 o'clock Sun
day night. She Informed city po
lice, who informed Mitchell, who
recovered the machine.
Ho said today that the car had
apparently not been driven far.
since the gasoline supply had not
been greatly diminished. The car
had not been harmed, but the
Itrnltlon key was missinpe.
MORGAN INVITED
IT! TO
U.S.
WASHINGTON. Jan. 8. (AP)
Evidence that J. P. Morgan Invited
Great Britain to buy control of an
American arms plant before this
country entered the world war waa
int.-ocluced today in the senate's in
vestigation of war-time finance. .
The invitation was contained In a
cablegram from Morgan to the Mor
gan house In London. J. P. Morgnn
and Company then was purchasing
agent In the United States for Great
Britain and Fiance,
Dated Jan. H. 1016, It said the
Winchester Repeating Arms company
was In financial difficulties.
-The point Is, would the British
government be Interested in purchas
ing this stock or In making any sug
gestions regarding Its purchase, or
would they like to Investigate the
situation with the possible view of
J. P. Morgan and Company Interest
ing others in the purchase In which
event they might have to become
party?" the message continued.
The reply, four days later, showed
the British opposed to such proced
ure. The senate munitions committee,
which Is examining Morgan and his
partners, contends American finan
cial transaction, with the allies led
this country Into the war,
roseburgDfc.
RG6EBURO. Ore., Jan. 8. (AP)
The Roseburg chamber of commerce
opposes tho Inclusion of the Diamond
Lake area under the national park
services and so notified officials in
Washington by wire.
The chamber contended national
park regulations would result in re
duclng the number of tourists and
campers. The lake area Is under the
forest service.
-
Fruitgrower Wins
Suit On Contract
A. L. Hiyjh. valley frulUjrower, has
been awarded 1407 by the Marlon
county circuit court, In hi, suit
gainst the Pacific Fruit and Produce
company, for alleged failure to carry
out a, purchasing agreement. The
findings of fact in Ihe action were
made by A. A. Reede, chief of the
marketing enforcement branch of the
state department of agriculture,
The court's majority opinion held
that the constitutional clause em
powering congress to tax and spend
for the "general welfare was an
Dxtra grant of powers to collect ,nd
appropriate federal funds. But H
held thst the AAA's distribution of
,1,000.000.000 In farmers- rental pay-
menu was an Invasion of state's
right, and so unconstitutional.
Black contended that the court,
after conferring extra power on the
federal government. Immediately
"appropriated It for Itaelf."
"The result Is," he said, "that
the court has with one sweeping
movement osthrred In all power lor
the federal Rovemment, but has
limited the exercise of that power
to the Judicial branch and has com
nietelv ub)wted both th, legis
lative and exetutlve functions."
Government policies, he Mid. will
be sublwt to the "whim, the capilce
,,f h.ller of malorltv of the
uprtoi, court supolullv, Ju4W
RELIEF CHILDREN
U. S. PLAN
16 Boys Engaged for City
Work in Youth Movement
Interest Being Paid On
Funds Will Be Studied
Steps were taken by the city coun
cil last night to provide employment
under the national youth adminis
tration for children of families an
relief, the recommendation being
niPde by Larry Schade,
It was voted to employ 16 boys at
present, the age limit for this nation
al program being 16 to 23 years.
Three or four of the boys are to
make a survey so that property and
other city maps may be brought up
to date and they are also to- assist In
modernizing the maps, it was stated
by Superintendent Fred Schcffel who
will supervise the work. The others
aro to be employed In cleaning city
lots and parking strips. .
It was pointed out the national
youth administration would bear the
ex-pense, the wages to range from 18
to $25 a month. The city has to
provide only a truck and supervision,
Mr. Schade explained.
Interest Rate Discussed
A letter from the United Statu
National Bar of Portland asked the
council to ratify the procedure under
which the bank pays one-fourth of I
percent annually on the minimum
monthly balances of Medford funds
In excess of 11000.
H. S. Deuel questioned the prac
tice, pointing out that the city would
be paid Interest on only (100 If the
deposits should drop to $1,100 for
one day during the month although
they might bo $40,000 during the re
mainder of the month. He suggested
that Interest ought to be paid on the
average balance.
When assured that tha Interest was
one-quarter of I percent per annum,
Mayor . Porter commented: "That
(Continued on Pag, rhree)
TOWNlTFl ALSO
UNCONSTITUTIONAL IS
WASINGTON, Jan. 8. (AP) Sena
tor Carey, Republican of Wyoming,
said today tho supreme court deci
sion Invalidating AAA confirmed hla
opinion that the Townsend old-age
pension plan was unconstitutional.
"Under the Townsend plan," Carey
said In a formal statement, "it la
proposed that a transactions or sales
tax be levied on all the people, the
proceeds of which are to be used to
pay pensions ($300 a month) to those
who have reached 65 years of age.
"That It la not constitutional to
tax one class of people for the benefit
of another Is clearly set forth by the
court In the , following language:
" 'A tax, the general understanding
of the term and as used In the con
stitution, signifies an exaction for
the support of the government. The
word has never been thought to con
note the expropriation of money from
one group for the benefit of an
other.' "
E FRANCHISE
GRANTED IN K. F.
KLAMATH TWLS. Jan. 8. (p)
Mayor Willis Mahoney wu reversed
last night wrica th, city council over
rode hi, veto of the Pacific Telephone.
nd Telegraph company franchise.
The five councllmen were unanimous
In their stand.
The franchise gives th, company a
13-year permit to operate In Klamath
pulls. Under th, agreement the city
will receive nearly !000 worth of frea
service annually.
Th, mayor opposed th, franchise
on the grounds that the company
should n-duc. It rates.
TRENTON. 1. J.. Jan. i. (AP)
Oot, Harold CI. Hoffman. It was dis
closed today, I, studying the trans
cript of tlx trial of Bruno Richard
Hauptmann, sentenced to dl, next
week for th, Lindbergh baby kidnap
murder. The governor la a member of the
New Jeraey court of pardon, which
lll convene Saturday to consider
UaufUmuui't plea foi clccuoucr.