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KLAMATH FALLS, OltE., THURSDAY, FEBRUARY 1, 1934
rMin-QDCuiin.
(a)
Editorials
UUJf?i'"fliAl
On the
Day's News
F
Hy FRANK JENKINS
nrlllH hoadllns flams aoross tlx
X front nftlfot
"Dollar Cut
41
Par Cant."
A nswa paragraph below the
hoadllns says: "President Roose-
volt today rovaluod th gold dol
lar at tS.OO per cont of It for
roor weight."
The new gold dollar will con
tain IB and flvo-twonty-flrsts
gralna of gold nine-tenths (Ine
, Tbe former gold dollar contain'
4. IB.S gralni.
t VERB la what average. ordl-
''nary people, tuoh aa you and
1. want to know
"What doe aH tbl moan to
mo?
And here la the anawor, which
la aubatantlally accurate ao far aa
tbo present and the Immediate
future are concerned:
NOTHING AT ALL.
TF YOU want to prove or dls-
prove that anawor, go out ana
. toil It for yourself.
Take a dollar and go up, and
down tho itreet and apond It for
ordinary necessities. Then com
pare what you get to aelurn for
It with what you got In roturn
for a dollar almllarly ipent
month ago.
You will find that TODAY you
at substantially the aame
amount In return for your dol
lar that you got a month ago.
Yet today your dollar contain
only 69.06 per cont a much gold
a It contained a month ago.
"1J7KLL," you aay. puxslod, a
" you haro a right to be,
'what la It all about, auyway?
Why all thl thimblerigging with
the gold content of tha dollar?
What' all the (hooting aboult"
PUTTINO It aa (Imply al inch a
uhloel can be nut. which
ISN'T very almple. tho (hooting
I principally at foreign trado.
Lot's ace It wo can llluatrnto:
8uppoo you're buying a ship-
load of Fronch wine, ltomoin
bar you can't pay for thl wine
with dnllara. The French win
maker doean't want dollar, any
more than you would want franca
If you old aome Froncliman a
(hlpload of potatooa. You would
not know what to do with tha
franca, and hs wouldn't know
what to do with the dollar.
8o, In order to pay for your
wine, you would have to buy
franca. That I, you would have
to EXCHANGE your dollar for
franc. ,
That I really what forolgn ex
change mean Just changing the
Inonoy ot ono country Into the
monoy of anothor, bo thnt peo
ple doing bualnosa botweon tho
two countrle can pay for what
they buy.
NOW let' got down to the nub
of the quoatlon:
Botore we wont off the gold
atandard, you oould buy about 26
and a halt francs tor your dol
lar. Now. with the gold dollar
dovaluod, you can buy only
about IB and a halt franc.
Obviously you could buy MORE)
(Contlnuod on Pago Four)
WASHINGTON. Fob. 1.
Editor Tho Evonlng Horald:
The vice president and Mr.
Garner's party to the presi
dent was one ot tho finest and
moHt onjoyed affnlrs you evor
aw. Thoy wore marvoloua
hosts, and the president did
onjoy hlmsolt. Mr. noosovolt
couldn't got over Mr. Garnor
staying up till 12 o'clock.
Boon visiting and llstonlng
to spoechos In both ends of
the Capitol all day. Debut
ing on the big navy bill In the
houao.
Was talking to a lady repre
sentative, and she atd to mo,
why do all thoso mon say that
a big navy will bring ponoo. 1
told hor, woll, even If It don't
bring pence It will oome In
mighty handy,
Yours.
SNWJUL-
r$ ROGERS
Y
TAX LEAGUE'S
FILLS
Attack Believed Directed
Toward Judge, Gil
lenwaters. C R. WILLIAMS
ENTERS BATTLE
County Commissioner An
gered by Reports
of Action.
Ity Malcolm Epli'y
Tho tax league' rumored
call movement drew fire from
two county official Thursday,
whllo others quietly awaited de
velopments said to be scheduled
tor a meeting of the league Wed
nosday night. One report la the
league plana to direct It attack
al County Judge Ooorgo Orliile
aud District Attorney T. R. Gil
lonwntora.
While thl apparently take
Couuty Coinraltnloner Charlo
William off tha firing line, thl
official stepped Into the tray
Thursday with a hot atatomont.
League Criticised.
"If anybody but tbe tax lea'
gue wanted to recall me, I would
resign, said Williams. "It Dap
pom, however, tho tax loaxuo
doesn't represent tho substantial
reiiponalblo cltizonry ot Klamatb
county.
"It Is my opinion the troublo
1th these fellows is tuat tney
aro mod because thoy found thoy
couldn't get apodal favora from
olocted officers. Thoy thought
they wero going to run things.
and thoy find solf-rospoctlng pub
(Continued on rage xuroej
Tonight at 8:30 tho Pine Tree
thoatre curtain will rise on the
most tirotentlous proaentatlon of
tho Little Theatre Guild of Klam
ath Falls "Ten Nights In a Bar-
Koom."
Tho cast stayed up all night
for a last minute dreaa rohearsal,
After the gruolllng work-out,
whon the borlton was beginning
to show signs ot approaching
dawn. Mlsa Virginia West, prosl'
dent or tne guna ana one ot iue
leading characters In tha play,
made tho following statement
'All ot us at the thoatre to
night or this morning Includ
ing the eloven members or tne
cast. Alexis Lyle, the prom p tor,
Clemont W. Lyons, director,
Mrs. Jlmmle Schad, stone man'
agor, and tho entire production
staff of Poole's theatres, Includ'
Inn Harry W. Poole himself, aro
oonfldont that our work for tho
last ton wooks will be rewarded
by a succossful presentation of
this famous melodrama to tho
ponplo ot the Klamath coun
try."
Record Equalled
. in Dash to Pole
BAY OF WHALES, Anturotlo,
(Via MacKay Radio),. Fob. 1,
(AP) CreWB of the Boar of
Oakland, supplyshlp which equal
ed a record run from Dunodln,
N. Z to tho Buy ot Whiles, and
of tho Uyi'ri flngshlp today work
ed at a tovorlnh pace discharg
ing winter stores to the bay Ice,
six mllos from Little Amorlca.
Hnnte was nooonanry, as load
er ot tho expedition toured crumb
ling Ice might again thrcaton
tho ships and supplies.
Portland Sifts
CWA Activities
PORTLAND, Fob. 1. (P) Be
cause of numerous complaints re
oolvod by tho Portland city coun
cil's roltot committee, the group
last night OBkod that the Mult
nomnh county rellaf committee
moot with It prior to- February
7 to sift chnrgos that favoritism
has boon shown In employing
CWA workors, .
10
POLITICi SKY
OFFICIALS
PWA Rescinds
30 Projects
MILLION DOLLAR LOAN,
GRANT TO DENVER
CANCELLED
WASHINGTON, Feb. 1, (P)
The public works board today
rescinded 30 allotments totaling
11,897,160 for construction of
non-fedoral projects, Including a
loan and grant of $050,000 to
Donvor, for watorworka Improve
ment. Tbe reason for tbe decision In
eacb case was not given, but It
was said some were at tbo re
quest ot applicants who now de
sired to abandon the projects,
whllo Qlhors wore because appli
cants had notified the adminis
tration 'they bad not compiled
with provisions ot tbe contracts
with the administration requir
ing that workmen be employed
not more than 30 hours per week
and be paid minimum wage rate.
PORTLAND, Feb. 1. (P) Tho
quoatlon of what course to take
In connection with tbe 11,500.
000 state building program. In
view of legal difficulties which
have arisen, waa under discus
sion horo today by tho state
PWA advisory bosrd and C. C.
Hockley, englnoer for the board.
LIQUOR OFFICE
F
Permanent Headquarters
Established in State
Capital.
SALEM. Fob. 1, JP) Perma
nent headquarters for the state
liquor control commission will
be ostabllshod In tbe State Capi
tol building tomorrow. Painters
wero completing tbelr work In
tho two rooms assigned to the
department on the third floor of
the building, and desks and othor
equipment will be moved In to
morrow. A. J. Montgomery will be In
charge of the offices here for the
presont at least, with Goorgo L.
Sammls, administrator, remaining
In Portland until the stores are
atarted thore, and then will be
much ot tbe time on the road. It
waa declared. Lawrence Hickam.
doputy administrator for this dis
trict, would have his offices
hore.
Sammls was here for a while
(Continued on Page Three)
0'
TO
PORTLAND. Feb. 1. (AP)
Rovoallng that as many as 1.600
skilled men will be employed at
one time on the Owyhee dam pro
ject In Malheur county, the Ore
gon headquarters ot the national
ro-emnloymont service announced
today that workmen tor this Job
will be drawn first from Mainour
county, and then from union,
Wallowa, Baker and Umatilla
counties In that order.
In each esse only mon listed
on the national re-einpioymont
rolls will be used. As soon as
all qualified mon have been tak
en from Malheur, tne union
county Mat will bo drawn from
until exhausted, .and the rolls
in tho other counties nnmod will
thou be used. If It develops that
thoro are not enough highly skill
ed men In those countlos, tho
Portland list will be drawn.
TILLAMOOK, Ore., Feb. 1, (IP)
Federal, state and city offi
cials today oontlnued their Inves
tigation of the rocent attempted
destruction by tire ot the Tilla
mook armory and of several writ
ten threats that the building
would, be bombod.
Armod guards have patrolled
tho armory alnoe fire was dis
covered In three parts ot tho
building several weeks ago,
ANSWER
PUBLIC ENEMY
OFFERS CLUES
TO KIDNAPING
Arrest of Verne Sankey
May Bring Lindbergh
' Solution.
GANGSTER TAKEN
IN BARBER SHOP
Captured Bandit Admits
' Parts in Two Famous
Abductions.
CHICAGO, Fen. 1, (P) A so
lution of tha long standing mys-
ii j oi me aionaprng and slaying
of Charles Augustus Lindbergh
Jr., was sought today through
questioning ot Verne Sankey, 42,
ono-tlme ranchman wbo allegedly
turned to the "snatch" racket.
Sankey, described by author
ities as "America's Public Enemy
No. 1," was seised late yesterday
afternoon by federal agents and
city detectives In a barber shop,
on Information furnished by an
anonymous source, and confessed,
Molvln H. Purvis of the federal
bureau of Investigation said, that
he bad participated In two kid
nappings that ot Haskoll Bohn
ot St. Paul, and Cbarloa Boett
cher II, the Donver capitalist
. Connections Denied
The former Gann, S. D ranch
man and one-time railroad en
gineer, denied be had any con
nection with the Lindbergh kid
napping, or tne abduction ot Ed
ward G. Bremer ot St. Paul, and
William Hamm. Jr., .also of St.
Paul, but the authorities pushed
their grilling of blm In the hope
of uncovering some new light on
these "snatches," particularly the
Lindbergh case.
In his confession of the Den
ver and St. Paul kldnapings San-
Key told rurvis that he had col
lected the 360,000 ransom for re
leasing Boettcher and 312,000
tor freeing Bohn.
From St. Paul Countv Attor
ney M. F. Kinkead was en route
to Chicago to aid In the Investt-
at!on. . It was Kinkead who an
nounced early last month that
ho had found evidence which he
said indicated that Sankey, long
sought by the law, had had some
connection with the Sourland
Mountain Lindbergh abduction in
New Jersey.
Similarities Fonnd
Handwriting experts. Kinkead
said, bad found a similarity In
the writing of the Boettcher and
Lindbergh ransom notes, and a
telephone call from Minneapolis
to an undisclosed town In New
Joraey scene of the Lindbergh
kidnaping had been uncovered.
The call, he said, 'was made from
(Continued on Page Three) ;
Who Gets Wolfe's $810?
, ,. Ip r V r
Bonanza Bank, Lawyer Enter Claims
Who gets the $810 found In
George W. Wolfe's mattress and
shirt when he was arrested at
hotel bere for robbery ot the Bo-
nansa bank. -
That question hi the subject
ot a legal battle In ciroult court
hero, with the likelihood a Jury
will be called in to end the con
troversy. Claimants ot the $810 are the
Bank ot Bonansa and W. P. My
ors, who was appointed by the
court to repreaont Wolfe In the
trlala In which he was twice con
victed and sentenced to 20 years
in prison. -
Used As Evidence
When , the officers arrested
Wolfe at the hotol, they found
the' $760 under his mattress. The
accused bank robber at one time
declared tho monoy was a "plant"
and he, know nothing about It,
according to officers, Also $60
waa found in his shirt.
This money was entered by the
state as an exhibit In both trial
ot Wolfe In ciroult court hero.
It Is , now held . by the court
olork. '.
Rooently, Attorney Myers filed
petition In ciroult court asking
that the $810 be turned over to
him In ' accordance with an as
Paul Jackson
Seeking Post
KLAMATH PIII.VCIPAX RE
PORTED CANDIDATE
AT SALEM
SALEM, Feb. 1, (AP) Paul
T. Jackson, principal at Klamath
Union high school and chairman
of the executive board of the
state high school athletic associa
tion, will tile application with
the Salem school board for the
position of city school superin
tendent bere, be told the board
yesterday following eonferonces
with individual members.
Jackson will seek the position
to bo loft vacant by George W.
Hug at tbe expiration ot his
contract August 31 of this year.
Other applicants for the super
intendence are Frank B. Ben-
nett. Tillamook superintendent;
John F. Cramer, Grants Pass
(Continued on Page Three)
OF
Fisher Addresses Joint
Meeting of Kiwanis,
Chamber.
"America is on the trail. We
hMTB.to keep going.", said Fred
erlck Vining jlsher, platform
representative of the NRA. In an
address before the Kiwanis club
and chamber of commerce iorum
at the Wlllard hotel Thursday.
The dining room was filled.
The sneaker traced historical
developments which, he said, led
to the adoption of the new
deal." In 1769, be said. George
Washington. Thomas Jefferson
and others drew up an agree
ment calling for fair business
practices that has recently been
discovered in some old Wash
ington documents, and qualifies
as a forerunner ot tne nauonai
recovery act.
Fisher asserted America
(Continued on Page Three)
MICHIGAN CITY. Ind., Feb,
1. (AP) John Dillinger's throe
outlaw nals came oacK to aiicai-
ran Citv nenltentiary today con
voyed by 18 squsd cars ot Indiana
and Illinois officers and were
locked away for sate Keeping.
They were brought from Chi
cago under escort oi o police
men armed wnn macmne guns,
rifles and riot guns.
As the caravan stopped at the
portal ot the penitentiary whence
thev escaped last Sept 26, the
Michigan City police formed an
aisle through which the outlaws
marched.
signment given him by Wolfe as
attorney's fees on appeal. The
petition cited the Bank ot Bo
nanza to appear la answer.
The bank, through its attor
ney, William Ganong, answered
that the $810 was part ot over
$5000 stolen In the bank robbery
over two years ago.
Jury Trial Ponds.
Myers then filed a motion for
a judgment on the pleadings.
Judge Duncan on Wednesday de
nied this motion, and signified
bis intention of having the case
tried before a jury. Myers ob
jected, and said he would file an
affidavit of prejudice against
Duncan. The court denied him
this privilege on the grounds
the case Is at Issuo on a ques
tion of tact, and gave the attor
ney to understand the matter
will be placed before a Jury tor
decision. .;
Now Myers has asked the cir
oult court olork tor a transcript
on appeal In tho Wolfe case.
Wolfe was convicted of Hie
Bonanza bank' robbery and sen
tenced on January 80, 1932, to
80 years In prison. The oase was
appealed and reversed for a new
trial. Wolfe was again oonvloted
and again sentenced to a 80-
year term
THREAT OF RECALL MOVE
; '; ' . '
1 1 1 mi nam , , i
GOVERNMENT nnii AD nnAiiiATinM
EYES EFFECT
Treasury Secretary De
scribes Nation As
Model for Gold.
FEDERAL RESERVE
COLLAPSE VIEWED
Professor Fisher Urges
Sole Power to Issue
Currency.
WASHINGTON. Feb. 1. (AP)
The United States was describ
ed today by Secretary Morgen
tnan as being on a "1934 model
of a gold bullion standard" ss
a result of the dollar devaluation
program which netted the govern
ment a 12,792,940,617 prollt.
He made this statement to re
porters as Professor Irving Fish
er of Yale testified to a House
banking subcommittee that the
existing federal reserve system
"will now be lucky it It escapes
destruction altogether."
Secrecy EBforeed
FIsber urged creation ( a fed
eral monetary authority with
sole currency Issuing power.
Morgentbau refused to discuss
operation of tbe 12.000.000
stabilization fund created out of
the devaluation profits.
Its use Is to bo kept Btrlctly
secret.
Administration officials watch
ed tbe climb ot quotations on the
stock markets and the ebb and
flow ot the dollar In foreign ex
change.
SYSTEM HELD ENDANGERED
WASHINGTON. Feb. 1, (AP)
Professor Irving FIsber testi
fied before a house banking sub
committee today that the existing
federal reserve system "will now
be lucky if it escapes destruction
altogether." He made this com
ment in endorsing proposals for
a federal monetary authority
with sole currency issuing pow
ers.
The bill before the committee
for establishment of the monetary
authority, the Yale professor held
to be "a splendid step toward
the goal which President Roose
velt has set before . us."
For "political reasons," he as
serted, tbe federal reserve system
with 12 regional instead of one
(Continued on Pago Three)
t
WASHINGTON, Feb. 1, (AP)
The senate today adopted a
resolution requesting President
Roosevelt to present a "compre
hensive plan", tor the guidance
of congress in enacting legisla
tion for a nationwide system of
flood control, navigation,' irriga
tion and power. . '
Tbe resolution, 'presented by
Senator Norris (R-Neb), was an
outgrowth of a conference with
President Roosevelt yesterday In
which many other members of
both senate and bouse Interested
in waterway Improvement parti
cipated. A similar resolution Is
expected to be offered In the
house.
PORTLAND, Ore., Feb. 1, (AP)
Demonstrations against a film
depleting tho Nasi triumph over
communism In Germany will be
continued as long as the film,
S. A. Mann Brand, Is shown here,
protesting Portland communists
and their sympathisers said to
day. A demonstration was also
promlsod for this afternoon when
five persons arrested tor carrying
improper banners at last nignt s
demonstration oome up for muni
cipal court hearing.
MARKETS
uulltm uLvnumnun
STIMULATES BUYING-;
STOCKS, BONDS MOVE
Average for Industrial Stocks Are Highest
. Since September, 1931; Active -Response
Recorded ' ;
NEW YORK, Feb. 1 (AP) Dollar devaluation arid
the United States' new position on a modified gold bul
lion standard brought heavy buying into the security
markets today. .. . r .
Stocks rose $1 to more than $4 a share. Profit-taking
flurries were numerous, but demand was huge and scores
of issues, especially industrials, plowed to new highs
since 1931. The close was strong. " ;
Bonds, including U. S. governments, were active and
strong, but many of the commodity markets made com
paratively narrow fluctuations. Wheat closed virtually
DDLUR RESTORED
Way Believed' Opened to
. 'Potential Credit
-; ' Expansion. .
(Copyright, 1934. . by the Asso
ciated Press)
NEW YORK. Feb. 1. UPi
rresiaent Kooseveit s proclama
tion devaluing the dollar' approxl
mately 41 per cent, as under
stood by Wall street monetary
authorities, has virtually restored
tbe dollar to the international
gold standard and opened the
way to a huge ' potential credit
expansion.
It is believed that stabilisa
tion, ot the dollar in terms of
principal foreign currencies has
probably been largely accom
plished. Price Rise Expected
As bank credit expands, bank
deposits grow, and as the turn
over of bank deposits increases,
that is, as check settlements ac
celerate, . prices normally rise,
wartime- expansion of credit
brought sharp increases In com
modity prices. Tbe more recent
boomtime credit growth of 192S
29 was. reflected rather in a
jump in real estate and security
prices than in stable goods.
How the treasury will use the
more than J2, 700. 000, 000 in
gold "profit" resulting from the
decrease in the gold dollar re
mains to be seen. ...
Create Stabilization Fund
Its ! first move has been to
create a $2,000,000,000 stabiliza
tion fund, to stabilise the' dollar.
In the foreign exchange market,
and to stabilise the price ot gov
ernment securities.
Stability Solution Aim
Tha potentialities ot this big
addition to the nation's mone
tary gold stock, It is pointed out,
may be seen in the fact that an
Increase in the country's gold of
nearly 13,400,000,000 from 1914
to 1939 was accomplished by a
jump in bank credit of more
than 136,000.000,000, Further
more, banking authorities ex
plain, such an Increase In gold
would support a theoretical max-
(Continued' on cage Tnree) ;
LA TE
SALEM, Feb. 1. (AP) Two
hearings on applications for per
mits to operate as contract car
riers were set by the public utili
ties commissioner today for Feb
ruary 8' at Klamath Falls. ; Tho
applications were filed by - tho
Roguo Klver Motor Transport
company and the W. K. Cum
mlngs, of Mcdford.
NEW YORK.' Fob. 1, (AP)-r-
The New York Federal- Reserve
Bank today reduced the redis
count rate to 1M per cent from
the ' a per cent rate which had
been la effect since Oct. SO last.
unchanged. .
NEW YORK, Feb. 1 (AP)
The Standard Statistics
Co., average for 60 indus
trial stocks;, closed. today t
102.4, the highest level since
September, 1931. The top
in last . summer's "buil"
in last summer's "bull mar
ket" was 102.1. The clos
ing composite of 90 stocks
today was 91, up 2.3 points
net, compared with the July
high of 96.9. ' :
NEW YORK, Feb. 1. (P) Un
der buoyant leadership of sec
ondary issues the bond market
moved upward at a fast pace to
day. U. S. governments moved
along with the trend, although
their gains, were not quite so
large as those recorded yester
day.' .
The principal gainers, which
added from 1 to 4 points; to tha
closing values of yesterday, in
cluded Chicago ft Northwestern
4s, Erie 6s, International Tele
phone issues. Postal Telegraph
5s, and Warner Bros. 6s..; '
U. S. treasury loans ranged
from 232g to 1232s of a point
higher near the .close. , .
CURB ADVANCES. .
NEW YORK. Feb. 1. ; (Pi
Curb market prices advanced
substantially today under a broad
and active demand for shares In
every section ot tho list.: . ' , v
Aluminum company. Amir lean
Gas and Electric, Electric Bond
and Share, GUlf . Oil, Newmont
Mining. Montgomery Ward "A",
Niagara Hudson Power, Parker
Rust Proof, Pittsburgh ' Plat
Glass, Sherwin Williams,' Stand
ard Oil of Ohio, and' Swift and
Co. Improved around one to mora
than two points. Cbllds FD ad
vanced 7. Soma metal stocks.
after an Initial spurt upward, en
countered profit taking and sill
back . to around , their previous
levels.
. By Associated Press '
Domestic . 1 financial markets
surged upward today in response
to devaluation of the dollar to
69.08 per ; cent of It former
parity. . . :,
The dollar Quickly advanced in
foreign exchange dealings after
an early sag In Paris and Lon
don, and soon commanded a pra-
(Contlnued on Page Three)
NE WS
PORTLAND, Ore., Feb. t, (AP)
A general increase ot about
14 .a per cent In wages of street
car men employed here was or
dered today by the arbitration!
board In ' tho wago controversy
between platform workers and tha .
Portland Traction company. The
increaso Is effective at midnight
tonight. ,
SEATTLE, Feb. 1, (AP)
Prosecutor Robert M. Burgusid
today filed a ll.19 gn4
larceny chargo against Georaw
O. Wlttenmyer, myste4aaf
missing treasurer ot King eoaV'