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Member ot the Associated Press.
Fifteenth jvat .v). noH7.
KLAMATH FALLS, OREOON, WEDNESDAY, AVOUST S, 1(31.
PRICK F1VK OKRT1
FHH PAY
Nffi IN
THEIR LOANS
(Herald Washington Bureau)
WASHINGTON, Aug. 3 "In ad
dltlon to' paying a high Intercut rata
of a to 10 per cent, ten of thous
ands of farmers are paying bonuses
of 120 to 100 on each thousand
dollar borrowed," stnted Urn Sil
ver, Washington rvpronontatlvo ot
the American "Kami Bureau federa
tion before thn banking and cur
rency committee recently, when ar
guing for an increased Intoreat rate
on federal farm loan bond a pro
vided In thn aenatn bill 1111, Intro
duced by W. H. Kenyon .of Iowa,
"Thla condition was shown by a ro
oent referendum taken among thn
morn than a million member of the
American Farm Bureau federation,"
continued Mr. Sliver. t
Bank Vrrm Farmer
"Thl lit bncaun thn farm land
banking system haa not been func
tioning and private bankers, and
ven national bank, bavo aoverely
pressed farmer to pay their loan.
A a case In point, Mr. Silver filed a
letter with the committee, showing
that a national bank had notified
on Juno 21 all' of lie customer who
had borrowed mono and used cot
ton as collateral that If the lon
wars not paid by July 1st that thn
collateral would bo sold, or us much
of It a needed to pay thn loan.
"Thla bank I not thn only offend
er." stated Mr. Mirer, "for all over
thn country bunks, both national
and atatn, either dlroctly or through
aotno officer or a friend of tbo bank,
have been calling loan and 'making
the farmer pay largn commission
or brokerage In addition to excenilve
Interest. This was posulblo, tor thn
farmers wero unable to borrow In
other placo.
Farm Hank Not Functioning
"Tho Farm Ioan bank warn not
functioning for a long period bo
cause of thn court proceeding test
ing the constitutionality of thn tax
exempt feature of thn farm loan
bond. Since tho decision that the
tax eiompt featuro la constitutional,
these bank have found It difficult
to operate becauso tho law fixed tho
rata of Intercut, 6 per cont, so tow
that It was lmpoulblo to sell the
bonds Jn volume In present mono
market. The effect was noarly to
cloaa thn avouur of tho farm loan
system to the farmer for long-time
money,
"In flouting an Issue ot $40,000,
000 ot farm loan bond recently,
great difficulty was experienced.
With S18,CO(0,000 worth of bonds
aubacrlbed at tho opening of tho
campaign, It wa necessary to em
ploy one of the largest bond syndi
cates ever gotten tognthor In Amer
ica to sell tho romalnlng $22,000,
000 worth, and It then required 63
day. Thl illustrates how difficult
It I to provldo funds for tho foderal
fsrm loan nyatom under tho low in
tertat rato provided by low.
"Although tho present bill pro
vides for an Interost rato of CVi, or
one-hatr ot onn per cont higher than
tho .present maximum, it would pro
vide thl monoy without increasing
t rato to bo paid by tho borrower;
' Mortgage Debts Largo
"Conservative estimates ot tho
amount ot mortgago Indebtedness on
farms In tho United States Is be
tween $6,000,000,000 and $7,000,
000,000, and tho consus ihows that
the amount of mortgage debts car
ried by farm oporatod by their
owners was $400,000 In 1920. To
refund this Indebtedness of $6,000,
000,000 to $7,000,000,000 over a
period of 20 yoars," continued Mr,
Silver, "mean that each month
there must bo floated approximately
$25,000,000 worth ot farm mort
gago bond, or In round numbers an
isaue of $300,000,000 u year. Wo
are confident that thoso bonds rep
resent bettor security than railroad,
municipal or public utility bonds, In
that their collators has boon ap
praised by federal suthorlty, and it
a Tftto of interest can bo chargod
which allows those bonds to com
pote lu tho commercial markot for
unonoy, thoy can bo readllysol'd, I
"The average valuo por Lfarmr In
1820 as detonnlncd ' by the ' census
was $11,1(38. Tho average debt was
$3,861, The amount ot mortgage
debt increased 132.6 per cent during
Landi Say Ball
Player Can't Get
'Back in League
CHICAUO( Aug. 3. Seven Whlto
Sox ball player who, with other
worn acquitted lst night on a clirirgo
of throwing thn 131'j world sorlo'i
games, Joined tho Jurors who acquit
ted them at a celebration In a local
restaurant that lasted .until sunrise,
Judgo Landl asserted that nono
of thn acquitted players would bo
restored to organized bohsll. Three
of tho plnyefs confessed to tho grand
Jury last fall but the confession
wero stolon from tho court record.
"Straight ahead and darn tho de
pression," is 'tho paraphrase on Far
ragut's command evolved by It. C.
Spink, who last evening closed tho
Inrgcst realty deal negotiated In the
county recently, when he purchased
from Abraham Charley 12 acres on
thn west sldo ot thn Williamson riv
er near Chlloquln About bait tho
property ha already been plaltod for
n townslte. Thorn are 1112 lot In
thn platted area, 23 of which havo
been sold. Thn new owner plan nn
luimodlalo selling campaign of tho
remainder. Tbo urea not a'n-atly di
vided' Into lots, some 40 acres, will
probably be sold in tracts from oiio
up to five acres.
Mr. Spink nald today tlut he
would start at once to clear the
ground of brush and tlmbor and lay
cut tbo atroajs. Home timber i on
llii around to bridge thn Williamson
river, opposite thn Chlloquln Mer
chautlln company' ntoro and the
hrldr,'. hn say, will be built this
fall. Thu building ot this hrldun
will bring hlghwnyN approaching
Chlloquln Into town through tho cen
ter ot the now townslte.
Mr. flplnk consider tho portion of
tho property having river front.
highly desirable for summer homes,
on account ot tho splendid fishing
In the river, and expect the front
lot to bo snapped up rapidly by lo
cal people. Tho rear lot may also
bo used a summer -homo cites, or It
not, a rental properly. There I
quite a demand for rented home In
Chlloquln, he says, and ho expects to
put up a number ot three and four
room bungalows thl fall.
Tho new owner also haa In con
templation a summer hotel. Ho ex
presses great faith In tho futuro ot
Chlloquln and state that ho lll de
velop tho townslto a raplty us pos
sible. LIBRARY CLUB TO HAVE
CHILDREN'S STORY HOUR
Under tho auspices of Iho Woman'
Library club tho children or the city
aro Invited to gather In tho park In
tho rear ot tho city library overy
Suturday In August, from 10 to 11
o'clock a. m., for a story hour.
Next Saturday, August 8, Mrs.
Estolle Carrier will entertain the
gathering. The ontertalnmonl will
bo aultabln for children under 42
years of ago, but tho attendance t
not restricted to thoso of that age.
Anyone wishing to come will bo cord
ially welcomod.
WKATHKR REPORT
1 ORKOON Tonight and Thursdoy;
fair; moderate wostorly winds,
juvxAAivtxruviru'vvvv"ri"i'j--JY"i" --
tho last decade, while tho valuo ot
tho farms carrying these mortgages
incroased only 117.6 per cent. In
1910 the ratio of debt was 27.3 per
cont ,and in 1920 it had increased
to 29.1 por cont,.
Louis Run Short Tlmo
"Under tho present system, unfor
tunately, tho average length ot farm
loans Is botweon three and four
years, after which thoso loans havo
to bo renewed. It must bo self-evident
how 'valuable 'Is the" federal
farm mortgago system which allows
those farmors to finance their mort
gagovdobts over a perlodofi36 years
(nstoad of bolng forced frequently to
renew those mortgages, usually, with
people "who do not understand farm
conditions, but are accustomod to
dealing with commercial transactions."
SPINKBUrS
BIG HUGE
jAfAAVVVAA0lllV01A'VV11
What Are Yon Uoisg to Uo Abort It?
iAAWWWWUAAAAWWjt0VWW
(HMTOKIAL)
Tho disappointment that ha spread throughout the city by reason ot,
tho failure of tho ccmont to shut out tholwate'r in tho Slsmons well
bow a lack of courogo that should not beifcnnnlfcstcd by any commun
ity 'that hope to'be moro lhan a struggling country town. . It tbo busl
lies mm of Klamath Fall bad an atom of tho norvo'of- the men who
aro linking tho, Siemens wolt, tbe Crlcr woM or the N. C. O. well there
would bo no sorloua manifestation of depression In, a city that has back
of it resource greater than oil possibilities. It, was an inspiration to
see tbo altitude of Captain Siemens yesterday afternoon, when told tbe
water bad broken through. "That's too bad but let u go at it again."
It was tho samo with Nlol Campbell, ,Ho has for more than two year
worked and worried over tho well.. He was, sure this time that be
could bold thn water, but as ha happened in hundreds of otbor wells,
tho cement did not set. Campbell didn't' sit down'' and hold his head. Just
as soon a ho wa ura the water had broken through, ho began im
mediate preparation to start at it again. It the next effort falls, be
will make the fourth attempt. That I the spirit thst i going to solve
tbo problem and determlno whether qr Hot tbcro 1 oil in the Klamath
IUnln. ,v
Hut; Is thoro oil here? ' "" "
No1 one know. Today you will bear' alleged statements of u noted
geologist that tbero I no'oll here. "Tills gentleman has made no such
dsflnlto suteraont. Ha ba said that conditions here are unusual; that
the surface would Indlcato volcanic action advorio to oil deposits, but
there are things hern out of -the ordinary, so much so as to completely
upaot tho ususl theories. If tbe oil he baa examined came from the
Siemens well, tbe peoplo here need not worry, for a five-barrel produc
tion would bo sufficient to Justify tbe development -work now being car
ried on, T ' .
l Those familiar with tho progress of the' Siemens well know that six
d If for on t oil sands havo been encountered, each with Increasing quan
tities or oil, the last being sufficient to Justify the ballot that It will
produce moro than the suggested flvo-barrel quantity to make.lt a pay
ing proposition. All of the history or log or tho woll.ha not .been
made public, but It Is known to thu. men who are paying' the bill, and
their advisor have told them to go ahead, and they are fu ahesjii aid
will contlnne to do so until they find oil or prove there taiiau hersu
A to your duty tho plain duly of those who wMrtMe!iV-o natter
what thn result, It I to Join , In, thu development work. The prospect
for oil are a good today a they were yesterday morning. Tbo thing to
do in to rxaiiilnn Into theso prospects and detormlne whether they are
genuine or spurious. Tbe solution will bo profitable one way or tbe oUu
or. No man who csn afford to spend ten dollars haa tbe right to re
fuse to do' bis part or stsnd bsck and let bis neighbors carry the bar
don. This Is a community development undertaking in which every
adult should be directly Interested and the person who Is not directly In
terested In a financial way is not and cantfet bo a good cltlxen or Kla
math county. rjr
It is a big undertaking to nut down nrn-fWt walla. nnn iu.iin
of the htupenduous magnitude of It
w.-uo vi iuo ( im norn snu cause uem 10 marvel at, and to admire,
toe courago of the plonoera. Dut marvelling ad admiration never sunk
a well. It takes money. With everyoneMoIng hi part, tbe harden will
be Insignificant. With a community of aUckers, tbe load wUl be heavy
for the tew. We can't believe that tbe foundation. of this elty.aad coun
ty Is being laid by slacker. We believe tbe same'Mlrit that prefaced tbe
early pioneer of the weat still Htm in th- A i. ti.ll.,YrZT-Z!-
and that 1 why- we believe that the
Dect this oil flM will h. f l.h.4
- -
Chenucal Action ton
Cement Prevent It
Checking Water Flow
The second lot of cement In tho
Siemens oil well failed yesterday af
ternoon to hold the water, which
broke In after tbe woll had been
balled to a depth or 1400 root.
Whlio It might be possible, It I
sdmltted, that the cemont did not set
long enough to harden properly, tbe
general theory advanced Is that there
are chemicals In tho water that keep,
the cement from hardening.
It Is planned now to secure tbe
service of expert who have had 'ex
perience with water flow In difficult
woll A special kind of cement U
used In dealing with these refractory
woll and tho men who come here
will bring a quantity.
It Is estimated that the failure to
check tho water flow moans a post
ponement of 30 days In further de
velopment ot the Veil.
Lighting Dicued
At Forum Luncheon
Tho forum luneboon at tho cham
ber wa held today under especially
pleasing circumstance. Tbe rooms
of tho chambor bail been decorated
for tho occasion with an abundance
of fresh cut flowers and added a
'distinct charm (O the occasion. Mr.a
Fred Murphey, chairman ot the dec
oration cpmmltteo supervised tbe ar
rangement ot tho many bouquets.
Tbo flowers were provided by Misses
Ruth Vannice,. Hills McCall, Kather
Inn Ulrica Elisabeth Manning and
Mrs. W. O. Smith. Some wore
a gift from L. N. Hannan and were
taken from the yard of tbe Mata
street courthouso.
Today marked tbe change in lead
ers tor three months, W. V. Mc
Nealy succeeding W. O. Smith. Mr.
McNealy introduced O, M. Hector,
who spoke on "Street Lighting." Mr.
Hector stated that the Fourth ot
July committee would gladly turn
over the electrlo light stringers used
during tbe national colebration bore
providing (tbe business men would
raise funds to keep them' lighted,
from dusk to midnight. The cost
was found to be $75 a month. Mayor
Wiley statedvthatrthe city could not
nnanco mem at present. J. J. Fur
ber, acting for the1 4th ot July com'
mlttee authorised the" gift in bo
halt of the comklttoe'.U l i
Will 'Woods introduced a resolu
tion accepting the gift providing that
,1 begtisilng to dawn upon the
flnaaclat support aecesearr to Bro
. .v-lAiflMVT!.?0-.??
- 1 t -i MI. lUll)fH . ISIS.
r - i x -
Porcupine Invade
Residence District;
Curiouty Costs Life
I Klamath Falls becoming more
and more provincial, or are porcu
pines becoming moro advanced In
tbe ways or tho world and acquiring
a desire for tho bright lights or the
city? That Is a question that has aris
en by reason or the visit or one ot
these quill peddlers Into tho heart
ot the residence district at Tenth
and Lincoln Monday night. Norman
Gage, whp with Cyril, Lawrence and
Teddy Daw, had been out in the
Merrill district on a picnic, was re
turning home about midnight, when
his qulllahlp was encountered and
promptly dlspatchod. This Is tbe
first porcupine that has been seen
within the city limits for some years,
so far as report go, and might be
a slight Indication of tho slowing up
process that has checked the ac
tivities or tho past few yoars.
BUYS HHOOND RUICK
Joei Wright, who resides on his
ranch near tho Miller hill, ha add
ed to his possessions by tho purchase
or a 1922 Bulck, this being the sec
ond car or this mako he has bought.
I'APFJt NOT RKHPONSIBIiK .
IN SLACKKR PUBLICATION
iNKV YORK, ,Aug. 3. Supreme
Justice William P. Burr .today sus
tained' a demurrer riled by the New
York World In a libel suit brought
by a man whoso name appeared In
tho list or draft evaders published
by the paper,
The, list or doiertera was furnish
ed by I the var department. Tbe
court held that it was a privileged
communication as a matter ot law.
i
some suitable means be round to fi
nance jioth the lighting and band con
certs on Saturday night.
The committees announces by For
um Leader McNeally Included,' steer
ing, W. A. Dolioll, chairman, Mrs.
O. W.) Eberlein,- L.' j,.Bean,0, M.
Hector, J. J. Fu'rber; entetralnment,
B. 8. Veatch, chairman, Fred Fleet,
W. D.( Marshall, Dr. Goo. E. Mallett,
Miss Alice McCourt; acquaintance,
R. B. (Smith, chairman, Miss Twyla
Head. C.'F, Trimble, Arthur Witson,
W Vt I TlfltiMAI. '.tlanan,. William
Lne, chairman, Miss Clara Calkins,
Mr, B. S. Henry? Don Voiding and
Frank, J Freytag, JTr.
Gasoline Price Cut
TvJo Cent Today at
All Coast Station
i
SAN FRANCISCO. Aug. 3. -Tho
Standard Of) company today reduced
tho price of gasoline two cents, of
fectlvn Immediately in all Pacific
coast states.. Crude oil prices .were
cutv26 cents a barrel. The reduc
tion makes tho prices. of gasollno 23
cents In San Francisco. .
The Jootl Standard Oil station to
day .announced that notification, of
ttho two-cent reduction bsdbeen .re,
celved. Gasoline has been selling for
35 cents, a gallon bere. It wl now
be 33 cents, '
ON LABOR Dlt
Plans are under consideration by
the labor organisations In this city
for tho annual Moor Jtay cclobrn
tlon, September S. and at tbo meet
ing ot nher 'orgaalcatlofis 'FrMJey
nfght at1 the tabor ' temple? an'out-
Una will be made by Chairman Wil
liam Conklln or tbe entertainment
committee. ,'
Mr. CeJt atated that an old
faabIoaeeWlcnle would be ad
vocated, ecvfasally who attends
provide a generous lunch and Include
"one extra helping" for somo out
sider. ,Tbe party -.would securo a
barge and tug, go some placo on
Upper Klamath lake and spend the
day In tbe wood. Transportation
would be free to everyone and tbe
barge would make two trips In the
forenoon The bnalaestwnum et-tbe
city were to be invited but asked to
n.tbek-'anane It'peaslble and leave
bespsfQr'roeJewUsient can.
"No chargeeTare tobe",wade'ior
anything, t A band nrill be secured
to play for tbe occasion. A number
of other arrangeasent will bo made,
covering other detail.
Huber Sap't. I
Inspecting Job
C. A. Dunn, general superintendent
of the firm of Oskar Huber of Port
land Is a visitor la this city today. Mr.
Dunn I here on business for his firm
and haa been Inspecting tbo road
work done In this county.
, Mr. Dunn atateel that -without ac
cidents, tbe Algesaa section would
be ready for acceptance by tbe state
about August 15th. The road to
Merrill had been completed and ac
cepted. Tbe read from Klamath
Falls to Dairy would very likely be
finished by September 30 and ready
to turn over to tho state, he aald
Tbo Malln Job, which takes in all
the territory except a small strip
or road near Merrill, will be rush'
ed to completion. It should bo
dono not later than December 1
Two rock crushers havo been
brought In. Ono crusher is install
ed and tho other oae will be with
in a short tlmo. Electric power is
promised them in 10 days.
CREDirORS MKKTING
Creditors or John and Ben- Shana-
han, who filed a voluntary petition
in bankruptcy July 18, are meeting
tbls arternoon. A trustee will be
chosen to handle the claims against
tbe Shanaban brothers. W. W, Fin
ley is receiver,'
Alleged Slayer I;
Taken in Australia
KALAMA, Wash., Ang. 3. Frank
Dalton.i charged with the murder,
March last, or M, P. Whalen, wealthy
rancher or tbe Woodland district,
baa been captured In Australia, ac
cording to a cablegram received by
Sheriff J. W. Hoggatt. The crime
wa tbe most mysterious and baffling
In tbe history of the county,
i
SALEM POST OF LKGION
REBUKES OREGON SENATORS
, SALEM, Aug. 3, Tbe Salem post
of the American Legion today tele
graphed Senators Stanfleld and Mc
Nary, expressing resentment ot the,
senators actions In vetoing the pro
posal to, recommit the federal aid
measure for ex-service men, as a re
pudiation of their pre-election pledg
8J t -
PUN PICNIC
m mw
NOT TIKE LESS
An aftermath of tlie meeting of '
tho city rouncll Monday night took
place yesterday arternoon when
Patrolman George' McDonald called
for hls;payrcbnck nt Judgo Loavltt'a
office. !
Patrolman McDonkld refused the
warrant for tbe amount It was drawn
by (he city clerk, $93, for salary dur
ing th month ot July, McDonald
claimed that as ho was confirmed i
a regular patrolman July 11, bo
should como under tbe salary rate
of $140 per month the remainder of'
the regular patrolman were drawing.
City Cleric LVavlU dlrcctod' his at
tention to thn fact that the pay roll v
amount was drawn at tbe rate ofjfi h
per day( as during tbe time, of pruiba- yi
tlonary'appolntmcnt.iand that as ,hb . . AT
salary was not fixed'. tO:dte, Anrsr-'ty
raiht for. only $3 a day eepld be made r
wider the clnmroetasmst.
McDonalds' attentlonjvas also dKT.
reeled to tbe mellpn carried in the
bsmrcii woMsy mgui jrsiuaiag itnn
wk salary asked fori by him and
'that' no established TbIo of $140
ainonth was'deslgnsttd'hy thn coun
cil In bis case.
Later In tbe day. Patrolman Mc
Donald called Councilman Dogardu
by telephone and asked If the mo- '
tlon made by bisk Included tbe Item, I
or pay at the rate at $140 a month,
Mr. ,BogardUi replied that- he bad
made tbe motion on the back salary; ,
ad as he heard the clerk read pay
ie neara ine cierx reaa pay
nald at' $93 tor that iaonlh,.
let lujc'tlisI'Mtter dlaa'ljowod
tor McDonald
be bad net 1
lay eHfi,'lerat
wordV .were"TWH I lnfne
th.i.,m
-T...J-" . " . rf . ..-.
-sIF-'V
.over the phono and Councilman Bo
gardu promised to have the amount
of McDonald's salary brought up at
tbo meeting Monday night August 8.
Mayor Wiley said that McDonald'
back pay and salary at the rate of
$140 a month was prcscntod to the
council on tho samo slip and an
error had crept in accidentally as only
tho back pay was disapproved and
not the $140 rato.
Tbo error ho added, probably arose
from the fact that the back pay and
new pay rato wero on the samo slip
and as both were presented at the
same 'time, the motion was construed
to govern the whole page.
Planning Tramway
From Crater Lake1
Rim to Surface
J. E. Enyart, a former Medford
banker, Is promoting a company to
construct an aerial aytsom to trans
port tourists from the rim or Crater
lako to the lake surface One ot the
largeet eastern mlro ropn manufac
turers is associated with Mr. Enyart,
and will have experts on tho ground
In August to got all nocessary ta
and solvo tho various engineering
problems.
A local man has been gathering
miscellaneous and Indirect Informa
tion tor tho promoters, which will be
ued by their engineers for propar- '
Inf for tho final survey, v
It Is calculated that such a pas
senger conveyor as proposed by Mr
Buyart and his associates will bo pat"
ronUod by at least 60 por cont ot
thp peoplo that visit Crater lake. In
1920 over 20,000 visitors woro up
to' the rim of Crater lake, but only
a small portion or thin number wen'
down, tbe slope to the surface ot thn
lake on account or the steep and dif
ficult climb. Medford Clarion.
Another Open Air
Dance for Elks
The Elks havo decided to hold
another dance at, Dreamland pavil
ion on August 11th because of the
successful affair last.Thursday night.
The dancing will begin at 9 o'clocW
and will conttnuo until midnight.
Tbj decision war reached 'after a
survey of' the attendance at the last
dance. So. many expressed approval,1
another dance' was decided on by
the1 entertainment committee.
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