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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 27, 1938)
1 The Weather Forecast: Showers tonight and Saturday, not much chance In temperature. Temperature A Good Time Friday again. Right now It the time to prepare that WANT AD for the Sunday morning Ml tlon. Most folks read about everything In the paper Sun day and It la a good time to advertise. Medford TRIBUNE Highest yesterday Lowest this morning . . M Full Associated Press Fail United Press Thirty-Third Year MEDFORD, OREGON, FRIDAY, MAY 27, 1938. No. 57. Io)M mm ;: Aeorai OF The Capital Parade By JoBeph Alsop and Robert Kintner Copyright 1U37, by The North American News paper Alliance, Inc. NEW DEALIZING OF DEMO PARTY IS PLANNED WHITE HOUSE GROUP WOULD DOMINATE. PRIMARIES k CANDIDATE SOUGHT TO CARRY BANNER IN 1940 . ANTI-MONOPOLY INQUIRY EXPECTED PROVIDE ISSUE WASHINGTON. May 27. The com plete remaking of the Democratic party. In an Image both more radical and more responsive to their wishes. Is now being attempted by the pres ident and his general staff. That Is the astonishing and vastly significant meaning of many recent signs and portents. The attempt Is no Impulsive ex pression of the Incoherent longing for . athoroughly new deallzed democracy, long shared by the president and uch Intimates as WPA Administrator Harry I. Hopltlna and the powerful Idea-men of the left wing. The at tempt la being made on a carefully concerted plan, after long and fre quently stormy discussions. In which the advice of older friends, like Post master General James A. Parley, was coolly Ignored. The plan's three stages are: 1. Breaking the power of the Dem ocratic party's old-line state organi zations in the oncoming primaries. For thla purpose, Hess waa backed against Martin In Oregon, and the j resources of the administration were lavished on Claude Pepper In Florida. For this purpose, ardently new desl lsh candidates have been put Into the field, or are being sought to run against such conservatives aa ' Sena tor Smith of South Carolina, George ef Georgia, Gillette of Iowa, Adams of Colorado, Lonergan of Connecticut, and Pat McCarran of Nevada. The effort la nation-wide, and state gov ernorships and memberships In the house are not being Ignored. 3. Building up a suitable candidate to carry the banner of the remade party In 1940. It was for this pur pose that the White House general staff offered Solicitor General Robert H. Jackson aa a nominee for governor of New York. For the same purpose, they are now running Harry Hopkins for the New York governorship. The wesk point In the position of the democracy's remakers is that none of (Continued on Page Twelve) WPA PlmPROBE SOUGHT BY SEN. KING WASHINGTON. May 27. (API Senator King (D.-Utah) drafted to day for Introduction In the senate a resolution colling for a sweeping sen atorial Investigation of alleged polit ical activities within the Works Prog ress sdmlnistratlon. King cited charges that threats had been made to deny relief to thow who refuse to vote "for certain can dldatea for public office or certain plbllc policies." King's announcement followed a proposal by Senator Byrd (D.-Vs.) to eliminate a S9G5.000.000 PWA Item In the pending relief and public works bill. SIDE GLARES by TRIBUNE REPORTERS Clarence Schmidt coming to town In rummer finery and rushing home to change on account of rain, his wife uncomprehending the maneu ver as It had not rained around their domicile. Al Hagen acknowledging that "Time Marches On" by donning a 'pair of cheaters (not bifocals). Promoter Mack Llilard rushing back to town to tell how b'.g Ladles' nlenl went over ai me mamain rails rasslin' riots, he averring he never before heard such fcmtnlne squeaking end equawKin?. Copper Fred LaDue planning to go fishing again this week-end. though be spends his angling time sleeping on the banks while com rades do the work. Anna Mae Fueon Rosenfleld home for a visit and looking splffy In Bollywood finery. ASK E. State Attorney General Says . Firm Substituted Unmar ketable Securities in Nu merous Investment Trusts NEW YORK. May 27. (AP) State Attorney General John J. Bennett, Jr., today asked in state supreme court that all partners of the New York stock exchange firm of Paine. Webber & Co- a leading commission house with offices In 19 cities, be forever enjoined from engaging in the securities business in New York state on the ground of alleged frauds against the public. Bannett. In allegations sworn to by his assistant. John R. O'Hanlon, accused the defendant partners of Paine. Webber Jfi Co., of employing fraudulent practices upon the state and upon the public In connection with substitution of "unmarketable" securities Of "little or no value" for diversified portfolios of a number of Investment trusts in which the public Invested approximately $16. 000,000. Many Defendants Nineteen individuals and four cor porations are named aa defendants in addition to the Paine, Webber group. During thb past six month, ac cording to O'H anion's supporting af fidavit, operations lnvolyed "at least six Investment trusts representing an aggregate public Investment of over 16,000.000." These trusts, he said, were: First Income Trading Corp.. Continental Securities Corp., Reynolds Investing Co.. Inc., Insuranshares Corp.. of Delaware, Bond & Share Trading Corp.. and Burco, Inc. O'Hnnlon'a supporting affidavit said in part: "The practices complained of con sist of the repeated operations of one or more groups of Individuals, acting through common agents In acquiring control of security invest ment trusts, financing the purchase of control out of the portfolios of the trusts themselves and then pro ceeding to syphon out the rusts' liquid assets by substituting for marketable securities In their port folios various unmarketable securi ties, including in particular the stocks of certain Canadian corpora tions organized or controlled by the defendants themselves." Restrnlner Issued Pending hearing on Bennett's ap plication for a permanent Injunc tion against all of the defendants. Supreme Court Justice Samuel I. Rosenman today Issued a three-fold restraining order and set June 7 as the date for hearing to show cause why temporary and permanent In junctions should not be Issued re straining all defendants from en gaging in the securities business In New York. In the preliminary order one group of defendants, including a former Paine, Webber attorney, are Imme diately restrained from engaging in the securities business in New York. A second group of defendants, in cluding two individuals. Amerlcus J. Leonard and John B. . Shearer, and four Investment trusts. Burco., Inc., InsuranshnreB Corp., of. Dela ware. Bond and Share Trading Corp., and First Income Trading Corp., are similarly enjoined. The Paine Webber Jc Co. partners, and partners of the erstwhile New York Stock Exchange firm of Pren tice fc Brady, now In process of liquidation, grouped together in the third section of the order, are im meditely restrained from engaging In financial transactions affecting con trol of investment trusts, and also from selling securities from the port folio of any Investment trust with out written permission of all hold- era of Interest. 10 KLAMATH FALLS, May 37. (API Klamath county's primary election canvass, completed today, resulted In nearly tripling the 21-vote lead over Henry L. Hess credited to Gov. Charles H. Martin In earlier returns on the Democratic gubernatorial race. In the official tabulations Martin polled 2411 votes. Hesa 2349 and O. Henry Oleen 196. No count was kept of Republican write-ins for Martin and Hess, but canvaaeers estimated the aovernor received 30 to 50 OOP votes. A feature sidelight of the e'.ectlon I here was the battle for the Republl- can nomination for county Judge. In which U. E. Reader carried every one of Klamath's 66 precincts to run up a 2431 to 343 lead over his op ponent, Leland Casey. BEND. May 27. (API State high way crew, made slow progress today In the big cut ea&t of the Lava Beds end were doubtful of opening the MeKenzie highway by Memorial Day. Tax Bill Will Become Law Without Signature i II Morgan Raps TVA Directors at Hearing 1 m ilm ''mMifWMn at P 0 0l::';4il H W v.i . . Tills was the scene, a tightly parked senate hearing room, as Dr. Arthur E. Morgan, ousted Tennesee Valley Authority chairman, told a Joint congressional Investigating committee the other two directors had falsified In a report on TVA negotiations for the purchase of utility properties. The arrow Indicates Dr. Morgan. Armed Police Bring Peace At Goodyear Rubber Plant AKRON, Ohio, . May 27. (API- More than 100 policemen, rifles anH tear gas guns at hand, forged a ring of peace around the sprawling plant of aoodyear Tire & Rubber company today In the wake of ' night-long rioting and sniping in which at. least 80 persons were Injured. The disorders, which reached their height at midnight when police wielded nightsticks and loosed tear and nauseating gases Into a crowd of 3,000 strike pickets and sympathizers, tapered off hour by hour until at dawn only a few score curious per sons remained at the scene. Police reported several hundred workers of the 6 a. m. shift, which ordinarily Includes about 2.000 men. entered the plant without difficulty, In the face of a C.I.O. strlko call. One policeman,. Patrolman Ray TWO BOYS HELD HERE AFTER HIT-RUN CRASH WITH STOLEN MACHINE Charles B. Preston, 18, of Prairie City and William W Stone. 20. of Portland were held by state police in the county Jail this afternoon fol lowing an ssserted hit-and-run mo torcar accident here late this morn ing. Preston, state police said, was In a car stolen in Los Angeles May 24 and in addition Is absent without leave from the United States airplane carrier Ranger on which he was serving as a seaman second class. He became absent without leave May 23, police said. Stone, described by police as a hitch-hiker picked up by Preston near Sacramento, was accused of driv ing the car it the time of the as serted accident. He was to be arraign ed In Justice court this afternoon on a hit-and-run charge. Preston, police said, waived extra dition proceedings and will be re turned 'to California for prosecution. The asserted ly stolen car smashed Into an automobile owned by Harry B. Duncan. Medford attorney, on North Riverside avenue near Sixth street, police said, ft then slammed into a park machine owned by Frank J. McKeown of 625 West Jackson boulevard. No one was hurt. The youths In the allegedly stolen car then sped on. police stated. Stae police gave chase and overtook them on the Pacific highway near the Tolo cut-off. BIG OCTOPUS ATTACKS CRAFT OFF OCEANSIDE N FT ARTS BAT. May 27. (AP) Captain Jake Puderbaueh Mid yes terday his t roller. Seal, had been at tacked and nearly scuttled two miles off Oceanside by ft 10-foot octopus. The captain said three other men and one woman were aboard when the octopus started over the side. It wss k.llrd with gaffs as It clung to the side raiL Nice, was struck by a shotgun Wnj-t, but returned to duty after reccrtrng treatment. Donald Dixon. 10, was shot and seriously wounded by rifle fire. Lieut. Stephen McOowan said police shot him. about four blocks from the scene of the principal fighting and several hours after the midnight fra cas, but added he had not learned the circumstances. Two other persons were reported shot and slightly wounded, while the other casualties 55 of whom re quired hospital treatment suffered head and similar Injuries. Adj. Gen. Em II F. Marx at Colum bus expressed belief authorities would be able to maintain peace without the aid of national guard troops. Six national guard officers were here. INESS OUT! AVERS GEN. JOHNSON NEW YORK. May 27. fP) The best that business and industry can expect from the future, says General Hugh S. Johnson, la "regulated free domlike all the rest of the folks." He expounded his views before the annual dinner of the American Iron and Steel Institute last night. "The change of popular opinion In this country toward government rrg ulotton" has been so great, he said, that there Is no chance "of going back to unregtilated economic free dom under futile anti-trust laws." Thus, he saw the only choice a? lying between "a third new deal nightmare" and "a eommonsen compromise." The compromise, he said. Involved recognition of collective bargaining as "the law of the land" and the "sentiment of the people." and re ductions In steel prices, "even at a considerable sacrifice of profits or even If some high cost producers are eliminated." " "If you can sincerely accept that middle course and accommodate yourself to It, you can steal this third new denl show and save our system." YOUTH ACQUITTED IN SWEETHEART'S DEATH NEW YORK. May 27. f AP) A Jury of midrile-avvl married mn to night arqulttrd 19-year old Donald Carroll of the slaying of his 18-year old sweetheart, Charlotte Matthlrjwn. The verdict was rendered at 5:35 pm. (E-fl.T.I The verdict was not guilty by rea son of Insanity. When the foreman's word i "not guilty" were spoken, a burn of court ' room applause drowned the it of the phrase BY GRATER CLUB BEFORE. A farewell testimonial breakfast was tendered In Valentine's cafe this morning by the Crater club to Its immediate past big eruption, O. Coyle Brlggs. city sales superinten dent of the Standard Oil Company of California, who has been pro moted to a similar position In Fres no, Calif. In appreciation of his services to the club. Brlggs was presented a scroll bearing a picture of Crater lake and the names of all the mem bers of the club. The presentation was made by John Johnson. Twenty six members attended the breakfast. Talks were given by Councilman H. S. Deuel, representing Mayor C. C. Furnas, Karl L. Janouch for the U. 8. forest service, E. P. Leavltt. for the national park service, and Olen Arnspiger for the Jackson County Chamber of Commerce. O. O. Alenderfer, big eruption, presided. Brlggs has been Standard SAles superintendent here for the past two and a half years. He has resided with his family at 15 Corning court. Accompanied by his family, he will leave here Monday for his new home In Fresno. OS WEST IS WITNESS FOR ROBERT CAPLES, ACCUSED OF BEAT-UP PORTLAND, Ore., May 27. (API Testimony In the trial of Robert F. Caplrs. former member of the state pilot commission charged with as sault with a dangerous weapon, end ed today after former Governor Os wald West and Circuit Judge James P. Staple ton led a parade of char acter witnesses to the stand to tes tify for the defense. Caplci. charged in connection with alleged bcatup of Captain J. t. Jacob sen, an Independent Columbia river pilot, In a union controversy, en tered a blanket denial when he testi fied in his own defense yesterday. Edwin L. Oarner, former official of the AFL Masters' Mates and Pilots union, who pleaded guilty to a simi lar offense, testified that Caples had arranged for the alleged assault through himself as head of the union river pickets. Defense Attorney Ashby C. Dick son. In his final argument, con tended that a grudge had developed between Garner and Caples through a conflict In interests. HENRIETTA B. MARTIN LOSES POLK ELECTION Henrietta B Martin, former local resident and president of the "Good Government Congress" during the Banka-Fr-hl turmoil in this county, wss defeated In the primary election a a Republican candtdato for repre sentative In the legislature from Polk county. She revived ft34 votes Her opponent received 751. RECORD CLASS T01I ETONI L Dr. Bruce R. Baxter, Presi dent Willamette Univer sity, Will Give Address Invocation by Rev. Knotts Medford senior high school's 45th annual commencement exercises will be held In the auditorium at 8 o'clock tonight, with Dr. Bruce R. Baxter, president of Willamette uni versity, giving the address to over 200 students saying goodbye to high school days forever. The class Is the 1 largest In history. Five seniors had not yet completed their requirements early this after noon, but were expected to do so before this evening, Principal O. O. j Smith announced. However, their . names would not appear on the pro gram. Mr. Smith said the class would Include probably 207 students. Dr. Baxter, who also gave the ad dress last year to the 1037 Medford graduating class, . will arrive here from Sslem at 7 o'clock this eve ning. He has not revealed the sub ject of his address. Roger Henselman Is valedictorian of his class and Evelyn Shaffer Is salutntorlan. Awards for the out standing senior boy and girl will be announced tonight. Mr. C. C. Lemmon, chairman of the school hoard, will award diplo mas to the graduating seniors, and Principal Smith will make other awards. Invocation and benediction will be glyen by the Rev. Joseph Knotts, pastor of ' the First Metho dist Episcopal church of Medford. The auditorium, which will sest 1 185 persona for the occasion, will be full to capacity. Admission will be by reserved seat ticket only, the tickets having been given to seniors for distribution among friends and relatives. Following Is the complete pro- (Continued on Page Eleven) LI WASHINGTON, May 27. (AP) Dr. A. E. Morgan apparently declined today to recognize the validity of President Roosevelt's order removing him from the chairmanship of the Tonnessce valley authority. Reopening his bitter public feud with his antagonists on the TVA board, the Ohio engineer and edu cator addressed a letter to H. A. Morgan aa "vice-chairman, the Ten nessee Valley Authority" despite the fact that President Roosevelt had des ignated H. A. Morgan chairman. The letter was inspired by H. A. Morgan's criticisms of A. E Morgan during a congressional Investigating committee's hearing Wednesday and yesterday of the charges and counter charges which Directors H. A. Mor gan and David E. Llllenthal, on the one hand, and A, E, Morgan, on the other, have exchanged. PRESBYTERIANS ACCEPT EPISCOPAL INVITATION PHILADELPHIA. May 27. (AP) The general assembly of tho Presby terlan church of the U. S. A. accepted today the Invitation of the Protestant Episcopal church to "achieve organic union between our respective churches." The assembly adopted a resolution declaring "its earnest and prayerful purpose to co-operate with the Pro testant Episcopal church In tho U. S. A. In the study and formation of such plans as may make possible the union contemplated." Youngsters Heed Sea's Call; Steal Boat for Island Trip 8ANTA CRUZ.'Cal.. May 37. (API A twenty-four hour coast guard hunt by ea and air had failed today to reveal any trace of three young boys aboard s stolen yacht, probably headed for Honolulu. The boys, Lyle Tars, 17, James Hen nlnger, 17, and Bill Oraca, 16, liars been missing from their homes here sine late Wednesday. The Diesel powered IJO.000 aloop Tlra" vanish ed from Its berth at the municipal pier about the sama time. Author Hies believe the boys took ths yacht and headed for ths Hawaiian Islands. baseball National H. X. B. Chicago .. 6 10 1 Pittsburgh 0 6 1 Lee and Hartnett; Kltnger, Swift, Sewell and Todd. American R. H. B. 8 10 0 3 6 0 Detroit Chicago Kennedy and TebbetU; Cabler, Rlg- ney and Sewell. (Only remaining game, St. louis- Clnclnnatl is night game). Cleveland at St. Louis postponed, rain. E TO JERSEY DISPUTE JTRflBT CITT, N. J Ma; 37. (AP) Mayor Prank Hagua today re filled to accept a proposed federal court decree settling moat polnta In the controversy betwoen Jaraey City and the OIO and others, declaring he would not "enter Into any oompro mlas with these red groups." The decree, drafted In the cham bera of Federal Judge William Clark In Newark yeaterday, had been tenta tively accepted by opposing counaal. Judge Clark said U it was finally agreed to, he-would sign It otherwise the whole ease, Including the dispute over Jersey Clty'a ordinance banning public speech -making -without police permits, would go to trial next Wed nesday. Under the decree, Jersey City offl- clala would be reatralned from Inter fering with peaceful . picketing and other organisational activities of the CIO, American Civil Liberties Union and affiliated organlzatlona and In dividuals In New Jersey's second largest city. WASHINGTON, May ST. (API- Representative O'ConneU (D-Mont) apparently sought to keep secret to day bis plans for going to Jersey City, N. J., where ha has promised to speak on civil liberties tonight, O'Connell telephoned his office early he would not be in during tho day. Close frlenda said they had not seen htm at his apartment. AT NEW YORK, May 27. (AP) A report of the communist party's or ganlratlon commission, read today at the party's tenth annual conven tion, said membership has Increased from 40,000 to 75,000 since 1036. Fifteen hundred delegates from every state and from Hawaii and Alaska were In attendance. Breaking down tha membership, the report said 68.1 per cent are members of trade unions, 03 per cent are employed persons, and 78.8 per cent are "middle class" farmers, professionals, white collar and so cial workers or in unclassified occu pations, other than heavy industries. TWO HINES COHORTS ENTER GUILTY PLEA NEW ORK. May 27. (AP) Two of the men, named with James J. HI no, Tammany leader. In an indictment charging they operated the 100,000, 000 policy racket once controlled by Dutch Schulta, pleaded guilty today to the IS-count Indictment. Arraigned before Supreme Court Justice Ferdinand Pecora, George Wolnberg and Harry Schoenhaus, both of whom had pleaded innocent to an earlier indictment, changed their pleas for the superseding in dictment which Included Htnes. The sloop waa the property of Lew K. roots, creamery owner. Ths coaat guard cutter Shoshone was somewhere In ths Pacific today searching for ths missing boat. Coast guard headquarters at San Francisco radioed all ships to keep a lookout for ths craft but at noon had re ceived no replies. Mrs. Paul Tar, who described her son as "obsessed of ths sea," said he had been preparing "for some kind of a trip" for aevorsi days and had taken a compass, charts and provis ions to his rowboat near ths yacht. AIMED TO ACCENT DISLIKED PHASES Signature Would Show Ap proval of Abandonment Important Principle Veto Would Lose Benefits ARTHURDAIB, W. Va, May H. (AP) President Roosevelt left Arthllrriale Homestead by train for Hyde Park at 3:30 p. nu (Eastern standard time). Mrs. Roosevelt left by automobile a half honr later for Washington. ARTHURDALE HOMESTEADS, W. Vs., May 27. (AP) President Roose- ' velt announced at the Arthurdals Homesteada school commencement exercises today that he would permit the five billion dollar tax bill to be come law without hla signature. "If I sign the bill." Mr. Roosevelt said In his address to the Arthurdals Homesteaders and to ths nation over the radio, "and I have until mid night tonight to algn It many rjso pie will think I approve the abanon ment of an Important principle of American taxation. Veto Kills AU "If I veto the bill It win prevent many of tha desirable features of It from going Into effeot. "Thereforo for ths first time sines T have been president, I am going, to, take the third course which 18 open to me. I am going to let tha sot go Into effeot at midnight tonight with out my approval." Ths president said bs was permit ting the tax measure to become law in that way to call attention to "un wtss parta" of the bill. Ths tax measure, whloh thus bs comes law. contains a remnant of ths undistributed profits tax. recom mended by Mr. Roosovelt and con demned by business. It completely overhauls former capital gains taxes also attacked by business toy sub stituting flat rates for a graduated scale. Noting that the legislation retains ths principle of ths undistributed profits 'tax, the president said: "Ths psnslty for withholding dividends to stockholders Is so small only two and s half percent at ths most that It Is doubful whether It will wholly -eliminate the old tax avoidance prac tices of the past." I,aw Revision Wanted As. to ths sdoptlon of tho flat rats capital gains tax, ths president ss serted: 'Ths abandonment of ths principle of progressive tax payment In accordance with capacity to pay may encourage a small smount of capital to go Into productlvs enter prises but chiefly, It will help those who make large profits In buying and selling existing stocks." "I should like to see a revision of our tax laws which would really en courage new enterprise and new In vestment and the undertaking by pri vate capital of projects like thla that the government has undertsken at Arthurdale." Mr. Roosevelt said, however, there waa "no assurance" untaxed aavlngs would go Into such new Investment, "They may bs hoarded or lost In the Inflation or deflation that occurs In ths shuffling about of existing In vestments," he commented. Ths president declared that unless something Is added to the combined wealth of the nation, "one man's cap ital gain may be nothing more than another man's capital loss." . "In aooordanca with recommenda tions msds during several past years," he said, "I hope that the congress wilt undertake a broader program of Im proving ths federal tax system aa a whole In ths light of accepted prin ciples of fairness In American taxa tion and of ths neceasary incentives In our economic life." Cltrs Former Abuses Emphsslzlng his belief that ths undistributed profits) tax as revised may restore certain forma of tax avoidance "and of concentrated In vestment power, which we had begun to end." and that the flat capital gains levy waa "a definite abandon ment of a principle of tax policy lone ago accepted aa part of our American, system," Mr. Roosevelt deolsred: "Two things ws can well remember. The first Is that our whols tsx sys tem, state, local and federal, can and must be greatly Improved In the com ing year. The second Is that we In this country ore getting more prac tical results In Xhs wsy of bettertnej the social condltona of ths nston out of our taxes thsn ever before In our history. That Is why It Is a prsttT good Idea to talk taxes not only ta psrents but to the younger generation of America."
