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MIMI
Editorials
On the
Day's News
1112111M11:1110MWEEMEN.11.11mammunnoWillig
, By FRANK JENKINS
A. ENRY MORGENTRAU, seers-
tary of the treasury, in a care.
fully considered speech, announces
the end of pump-priming and as
erts thet the administration must
carry out its plan to balance the
budgetmeaning that within a
year the government multi begin
to spend no more than it take. in.
Ile adds specifically that this
should be accomplished by cutting
about 8700,000.000 from next
year's emergency, expenditures,
rather than by increasing taxes.
A T THE same time. he holds Out
an olive branch to business by
intimating cautiously that existing
taxes that have a tendency to hill
the goose that lays the golden egg
may be modified if it can be done'
without reducing present rev.-WON"
?FIE 'dock ntarket (which In a
barotneter indicating what the
public thinks about business pros
pects) was closed when the secre
tary of the treasury made his
speech Wednesday evening, and
remnined closed over Armistice
Day holiday on Thursday.
When the market opened on
Friday morning, trading was cau
tiously optimistic, holding the
g ains of Wednesday, but little
more. In other words, business
has been fooled so often with
promises that It is Inclined to
wait for a little performance be
fore displaying much enthunittatn.
,
D ROM ISING a balanced budget
Is one thing. Achieving it it
another.
An unbalanced budget means
spending. A balanced budget
moans ECONOMIZING. Spend
ing other people's money is al
ways popular. Saving other peo
ploli money ISN'T.
Staying in office Involves get
ting votes. Spending Santa Claus
money has boon a good 'vote-got(Continued
on Page Two)
Liffle
Interviws
Howard Bornhimel, local reoltor
wan Mire a rotten game at
Bend Thursdayat Meat from the
miandpoint of a filtinukth sup
porter. Jean itherhort, athlotla direct
or Southern Oregon Normal
mehoolI am coining to Klamath
for a good duck hunt Sunday.
Went out on the Rogue river once
and got a had attack of hunting
fever.
I
Improved
Prospect for
Lumber Seen
SEATTLE. Nov. 12 up)--A no
ticeable improvement of lumber
market prospects tor 1988 was
roreeitat today .11y the West Coast
,
Lumbermen's seociation es It re
leased the weekly report on ac
tivities In the Douglas fir indus
try. which showed a depressed
condition.
Data from various authoritative
sources throughout the country
disclosed the "bright spots," an
'immolation statement said, They
Included:
The country-wide program for
promoting small homes building
should be greatly expanded next
year. reports from the winter con
vention of the National Lumber
Manufacturers' association at New
Orleans said.
The F. W. Dodge corporation
estimates a 12 per cent increase
in now family dwelling units next
year over this.
A recent survey reported
"'morning trends away from 'fads,
frills and fancies' in today's home
designs and a return to the Amer
ican tradition of lumber-built
homes."
In the farm-building field, sta
tistics place the national farm
gross Income today at Si per cent
of its 1928 level while farm
"spendable" income is 96 per
cent of that in 1928..
BROSTERHOUS BID ON
ENTERPRISE POWER
PLANT PROJECT LOW
Low bid for countruction of
the power plant for Enterprise Ir
rigation district was 161,991,
submitted by Brosterhous Con
struction company, the board of
directors announced Friday, and'
a resolution of acceptance wee be
ing drawn.
The project Is to be conatructed
on C canal as a PWA project. The
federal agency has awarded a
grant of $28.000 for the work
and the district recently author
ized a $40,000 bond Issue to make,
up the balance. These bonds will
be offered for sale as soon an
they are confirmed by the circuit:
court official. said.
Three other blds for construc
tion were opened by the directors
Thursday, an follows: M. W.
Cherry, $62,450; I. EL Gray, $63,-
105; Clifford A. Dunn, $65,052.
ELEANOR HOLM JARRETT
TO WEB BILLY ROSE
DENVICR, Nov. 12 (,P) Show.
man Billy Rose, declaring his
witch Fanny Brice, should be
"tired ot living with a men who
smelled of elephents." boarded a
California-bound train today with
Fleenor Holm Jarrett, whom he
said he intends to merry.
Both Rose and Mrs. Jarrett,
former Olympic) swimming cham
pion end a star of Rose's aqua
cede at Cleveland Mat summer, ex
preseed assurance they would soon
be divorced from their present
metes, Comnterienne Fanny Brice
and Arthur Jarrett, orchestra
leader.
ASSOCIATED PRESS
IPrice Five Cents
1
1:;Z:11 IN,- Ito
'Ito) tal4:111Vill'i 13,101'41
ciDP
04).it4 I 111k: IN 6 CM 14 IMF NM
Business Tax Cut Program Gains Impetus
Bend Lava Bears' Beat Klamath, 25-0
Here's an netion scene on Bend's turfed field Thuroday afternoon, when the Lava Beers over
whelmed the Klameth Pelicans, 25 to O. Bend Is running beck a punt In mid-field, the white arrow
at extreme right pointing to the ball in Mayer's arm. Klamath player' in white Jerseys are Pete
Wove, extreme loft foreground: Yancey. just beyond him: Sample' and illwer, corning forward at
center: Crepe and Willson, to right of loud peaker'. Htory on pone 10.
Oacning
AM7
MOTHISTS FIGHT
WINTEll CONDITIONS
Seven Cars in Wreck on
t
Bend Highway; Hill
Roads Covered.
Traffic over The Da lies-Callfornia
highway between Bend and
Klamath Falls Thursday night
was the heaviest of the year, and
the road was In the worst condi
tion. Motorists returning from
the Armistice nay football game
at Bond encountered blinding
snowstorms and surface of the
highway was slippery.
The snowstorm moved north
ward. striking Sun pass early in
the evening and descending in
full fury upon Crescent and vicin
ity nearly an hour, and a half
later.
Seven Cars Wrecked
Seven automobiles were In
volved in a series of accidents at
a place on The Da lies-Callfornia
(Continued on Page Two)
CHINA'S ARMIES FALL
BACK 50 MILES WITH
MPS PRESSING ON
SHANGHAI. Nov. 15 (P)
China's Shanghai armies, about
400,000 strong. fell back today
toward the Chinese "Hindanbarg
line" more than 50 miles to the
west.
Japanese troops, numbering
200,000, forced Chinese from
towns and trenches in the Shang
hai area.
Nippon's war planes ranged in
to the interior as the troops ad
vanced. One flight bombed the
American church mission hospital
at Wusih, 80 miles west of Nan
king, killing two Chinese staff
members. Five Americans es
caped injury.
IN THE SHASTA-CASCADE WONDERLAND
KLAMATH FALLS, ORE., FRIDAY, NOVEMBER 12, 1937
F. R. TO ASK UTILITY
HEADS TO LOWER RATES
BY CUTTING VALUATION
WASHINGTON, Nov. 12 (in--
President Roosevelt said today he
would talk with private power
utility executives next week, pre
sumably about his effort to get
them to lower property valuations
with a YieW to bringing down elec
trio rates.
He told a press conference he
did not know whether they would
take up the need for construction
In the utility field. A lag in such
construction has been mentioned
In recent presidential conferences
on methods to induce private cap
ital to go into the housing and
heavy building field,
In the housing study, the pres
ident said two prime factors were
being given attentionto get cap
ital to go into the field and to
gain the double objective of low
interest and low building costs.
The lower these costs are, the
president said, the bettor it will
be for the buyer and renter of
homes.
The entire undertaking, the
president emphasised, Is yet very
much in the study stage, It has
gone far enough, however, to
show that very little legislation
will be needed, he said.
Family Income, Here Heads
List of Cities in Study
Klamath Falls had the highest
median income ot any city studied
in a bureau of home economics
survey. the bureau reported Fri
day. Klamath familles,,averaged
$1617 per year and the average
for all cities studied was about
$1500.
The bureau bast Its shady on
interviews with 11,400 families
In 19 small cities selected as rep
resentative of American commun
ities which have populations rang
ing front 9000 to 19,000.
, In only six of the eifies did
the crons-sectien sampling show
home-owning families outnumber
ing renting families.
Highest ranking in home-ownership
was Logan, Utah, with a
percentage of 64.
Other cities Included Olympia,
Wash., 57 per cent. Astoria, Ore.,
was time lowest ranking in home
ownership, with a percentage of
17.
Average 'lents Revealed
Average rents paid in the 19
cities ran from $11 to Iga a
Help for Smaller
Firms Discussed
By Sub,cornmittee
Both Democratic and Republican Senators
Speak in Behalf of Reductions
on Levies
WASHINGTON, Nov. 12 (AP)A house tax subcom
mittee talked today of aiding little business men by re
ducing the tax burden on perhaps 15 per cent of thp
nation's small firms.
Chairman Vinson (D-Ky) said some system might be
worked out for graduating taxes on the small firms on a
lowered level.
No decisions were made on how this might be done,
he said, but "we are hoping to lessen their burden."
He added:
"They have more need of retaining their net income,
he said, but "we are hoping to lessen their
He added:
"They have more need of retaining their ni
relatively, to build up their businesses."
He said there was "quite some
disparity" between the relative LimiT TALKEi
tax burdens of the email and
large corporations. This dispar
ity. he said, the subcommittee
may attempt to remove in part.
Many Small Firma
In 1936. he said. 85 per cent INAGENHol
of the corporations bad a net in
come of less than 910.000. There
Is no question but that these fall
In the category of small concerns. E. R. Prepares
be said., but Abe -
ably will draw the line between .for Opening
men and big firms at some
where above a 910.000. net in- iress Monc
come.
More than 93 per cent of cor
porations filing tax returns had
net incomes of less than 650.000 WASHINGTON. No
In 1936, he said. President Roosevelt 1
Of the more than 500.000 cor- his message to congre
, (Continued on Page Two; sent to the capitol
month.
The average size of families on
relief in the 19 citien ranges from
3.4 to 5.1, while for non-relief
families the average is 3.2 to 4.5.
"As a general trend," the bu
reau said, "home-owning was
more frequent in the higher in
come brackets. As the income
level rose the rent level quickly
followed, ,indicating thot any in
crettse in income woe likely to be
reflected in better housing."
Only in Greeley, Colo., did busi
ness and professional families out
number wage-earnera' families.
In the other cities the latter ex
ceeded the former by ratios as
large as three to one.
The median incomes for the
cities studied included: Klamath
Falls, Ore., 21617; Astoria, Ore.,
21581; Eugene, Ore., 21538;
Olympia, Wash., 21587.
The percentages of home-owning
families in the cities (exclu
sive of percentages given above):
Eugene, Ore., 47; Klamath
Falls, Ore., 44.
RI7JIL
a
LIMIT TALKED ON
WAGENHE BILL
F. R. Prepares Message
-for Opening Con
iress Monday.
, 'WASHINGTON. Nov. 12 (AP)
President Roosevelt said today
his message to congress would be
sent to the capitol on Monday,
opening day of the special session.
He told reporters he had not
finished writing it and therefore
could not say whether he would
enlarge on the legislative pro
gram he already has outlined.
This includes surplus crop con
trol, wage and lour, government
reorganization and regional plan
ning legislation.
Administration leaders were
talking of limiting the scope of
the wage-hour bill to "sub
normal" industries, in which em
ployes receive less pay and work
longer than they say is "decent."
Changes Talked
Labor leaders frequently have
classed parts of the textile, gar
ment and cannery industries as
examples.
Two other major changes in
the bill also were reported to be
under discussion.
The first ,would eliminate the
proposed board for fixing min
imum wages and maximum hours,
and would substitute an admin
istrator in the labor department.
The second would give to joint
committees representing labor
and industry the power to fix
the wage and hour schedules
within limits prescribed by law.
These committees could hold
hearings and subpoena witnesses
and documents after the admin
istrator determined what indus
tries were "subnormal."
Administration officials were
said to believe these three
changes would answer the Amer
ican Federation of Labor's prin
cipal objections to the present
bill.
NEW TRIAL DENIED IN
EMBASSY CLUB CASE ,
Motion for a new trial In the
Embassy club gambling case was
denied by Circuit Judge E. B.
Ashurst Friday morning, and the
defendants. James Pulver, Barney
Barnes and the Embassy club, in
corporated, were fined $250 each,
amount of the fines assessed up
on conviction In juatice court.
The case was appealed from
justice court to circuit court, and
convictions resulted from both
trials.
Boon Cason. of Portland. coun
sel for the defendants, filed no
tice of appeal to the supreme
court Friday after Judge Ashurst
denied his motion for new trial.
MAIM Arterony
IIENDAYE, Franco Spanish
Frontier, Nov. 12 (ip)--Spanigh
government sources reported to.
day that a Catalan infantry at
tack In the Sabinanigo sector of
the northern Aragon front had
forced the Spanish Insurgents to
retire from several front line po
sitions. ,
..1
and quantities of wine, cigarettes
and undetermined amount - of
money taken early Friday morn-
ing. Page 6. .,
GENERAL
Drive for reduced on bust.
ness gains impetus with state.
ments from both republicans an4
democrats favoring such action.
Help for small business urged.
, ,
Improvement for lumber mar.
ket forecast. Page 1. ,
Limit of wage-hour program to
"depressed industries" favored, ,
House agriculture committee
opposes quotas and processing
taxes for wheat, . cotton and rice.
Page 1. 1 I
Suspect held in kidnaping sog -
aged former minister. Page 1.
- v
IN THIS ISSUE
City Briefs ' , Page I
Comics and Story ....... Page 11
Editorial Page 4
Family Doctor - Page 4
Market. Financial News Page
Railroad News Page 1
Recreation Notes Page 4
Sports Pages 10 is II
o ,
O
rm
0
L-.1
LI
trat
Rancher Kills Hooded Robber
Victor In a weird battle in which saber, knife and gun were
used. Thomas Elliott. 79-year-old rancher near Santa Rosa. Calif.,
is shown in a hospital after he killed a hooded robber identified as
James T. Jenkins, 67, retired mail carrier. During the fight
Jenkins' hand was cut off at the wrist, but he simply picked It up,
put it in his pocket, and resumed fighting, only to be killed.
Suspect
Held in
Kidnaping
-
WASHINGTON. Nov. 12 M
I. Edgar Hoover said today that
federal agents had arrested Ar
nett A. Booth at Huntington. W.
Va.. on charges of demanding
250,000 for the releue of Dr.
James I. Seder, 79-year-old for
mer minister who was kidnaped
from his Huntington home No
vember 1.
- The director of the federal bu
reau of investigation said Dr.
Seder was physically exhausted
when found yesterday near an
abandoned coal mine seven miles
outside Wayne. W. Va. He is re
covering in a Huntington hospital.
Hoover said Booth admitted to
federal agents that he had par
ticipated in the abduction of Dr.
Seder and in writing a 250,000
ransom letter November 2. His
confession, Hoover said. impli
cated Orville Atkins and John
Travis, who are still at large.
Hooveasaid Dr. Seder was kid
naped by three men when he
agreed to accompany them to as
sist in cashing a check. He was
found yesterday only after a resi
dent, near the farm on which he
had been held captive for 11 days,
heard his cries for help.
Federal agents and Huntington
police officers found Dr. Seder in
an exhausted condition. He had
succeeded in climbing from a steep
30-foot ravine in which he had
been held prisoner but was cov
ered with scratches, bruises and
blood, Hoover said.
PORTLAND ROTARIANS
HERE ON RETURN VISIT
TO KLAMATH CLUB '
Forty-eight Portland Rotarians,
all of them prominent business
and professional men of the Rose
City, were visitors in Klamath
Falls Friday.
They came in three special cars
on the Friday morning train, to
pay a return call to the Klamath
club. The local Rotarians visit
ed Portland last year.
' A breakfast was held for the
visitors Friday morning, and they
then scattered out a number go
ing dubk .hunting.
Big event of the visit was to be
the joint dinner at the Willard
hotel Friday evening. Portland
Rotary will put on the program.
Ross McIntyre, president, head
ed the delegation of Portland
Rotarians.
BAKER HOTEL BURNS IN
SPECTACUIAR FIRE
PIKER, Nov. 12 Up) The
Clarick theatre and all ot its con
tents were destroyed by fire this
morning in the most spectacular
blaze seen here in several years.
The fire, starting in the base
ment under the stage, spread rap
idly. A major part of the brick
walls fell after the blaze had burn
ed for an hour. The loss, amount
ing to more than 285,000, was
covered by insurance. ,
Unsettled, Paull) le Rains
Maximum 48
Minimum 88
PRECIPITATION
12 hours to 8 a. m.
Season to date AL04
UNITED PRESS IA" Year to date
Normal LOT
precipitation
Let
Number 8092 I
SOVIETS RECALL
3 AMBASSNORS
Purge" Believed Behind
Action; 2 Diplomats
Arrested.
TYPHOON CASUALTIES
INCREASE HOURLY
WEATHER
MOSCOW. Nov. 12 LPSoviet
Russia's ambassadors to Germany.
Turkey and Poland were reported
by diplomatic sources today to
have been recalled, and there were
unconfirmed rumors that two of
them had been arrested.
The same sources also said that
Rudolph Sommer. German consul
general at Leningrad, had been
recalled by the Berlin government
at Moscow's request.
Go After "Enemies"
The rumors that Dr. Constan
tine Youreneff. the envoy to Ber
(Continued on Page Two)
MANILA, Nov. 12 (Al')
Typhoon casualty lists lengthened
hourly as reports c a in e from
seven provinces and Manila dis
tricts ravaged by last night's
storm.
Known deaths tonight were 15.
A score of persons were missing,
16 of them being fishermen be
lieved drowned when their boats
capsized in high waves.
Ten , died in Manila, eight by
contact with dangling Wires, and
two from injuries and exposure.
Five others met death in- Rizal
province.
LOCAL
Klamath Falls has highest
median income found in recent
survey of families by bureau of
home economics. Page 1.
-
Enterprise Irrigation power
plant construction bid at $61,-
991 by Brosterhous Construction
company. Page 1.
, -
Motion for new trial in Em
bassy gambling case denied by
Judge E. B. Ashurst Friday.
Notice Of appeal to supreme
court .filed by counsel.. Page 1.
Ralph Macartney named on
board of National Lumber Manu
facturers association. Page I.
,
Portland Rotarians, 48 strong,
vEit Klamath club Friday. Page
1.
-
New snow reported on moun
tain highways Friday, with state
highway plows opening traffic
lanes early in the day. Diamond
lake highway closed. 16 inches
ot snow reported at Crater lake
government camp. Motorists en
counter heavy going between
Bend and Klamath Falls Thurs
day night. Page 1. ,
-
gnarls restaurant at Main and
Nast Main streets broken into
PROCESS TAX
NOT MOOED
FOR 3 PJHOPS
Agreement Near in House
Committee on Farm
Measure. ,
WASHINGTON, Nov. 12 OM
The house agriculture committee
decided today against compulsory,
control and processing taxes for
wheat, cotton and rice as they' ,
approached agreement on the ad
ministration's new farm bill.
Chairman Jones (1)-Tex.) an4
nounceil that although no vote
was taken, the committee felt
that the ways and means com
mittee rather than the agriculturo
committee should be charged with
responsibility for raising between
$175.000.000 and $200,000.000
he said the proposed new pro
gram would require.
To Talk Corn
The Texan said marketing
quotas. or compulsory production
control, for tobacco would re.
main in the bill now under con
sideration. Details of the corn -
pregram,-he added, would be die
cussed tomorrow. Most commit.
tee members from the farm belt
have expressed opposition both to
quotas and the processing tax.
Jones said the committee felt
the ways and means committee
should write a revcnue raising
bill for the administration's pro
gram because of the "practical
and legal phases of the situation."
He said he was certain the bill
mild not be ready for the open.
tog of congress Monday but added,
"We are trying to get it Out as
soon as possible."
WATERFRONT EMPLOYERS
LIFT SUSPENSION OF
PORT ACTIVITIES
PORTLAND, Nov. 12 (W).Th
Waterfront Employers' association
formally lilted its suspension of
port activities Ir.fft night after the
Forest Grove local of the CIO saw
mill union local removed a pi4et
line from a shipment of disputed
lumber here.
' Edward S. Coates. association
manager, said reopening of the
Coos Bay port, closed earlier in.
the week, might occur "within
the next 24 to 36 hours." ,
Although the, pickets, ' prevent.
log longshoremen from loading
lumber from the Carnation com
pany mill aboard the steamer He.
gira, were removed before the
a. m. deadline set by the employ
ers, lifting of the suspension was
delayed while possibility of fur
ther incidents was discussed.
TODÄY'S NEWS DIGEST
lops
1
House
I
,
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