The Capital Journal from Salem, Oregon • Page 1

aiuitaiA Journal I Circulation Dally average dletrlbu-tloo for the Month ol October. 1933 9,903 Average dally net paid 0306 Member Audit Bureau of Circulations City Edition Pair tonlte and Wednesday; fogs tonight. No change In temperature: moderate southerly wind. Local: Max. 65, mln.

43 rain 0, riv. 2 ft. clou dy, southerly winds. 45th YEAR, No. 277 Entered as second clasa matter at Salem, Oregon SALEM, OREGON, TUESDAY, NOVEMBER 21, 1933 PRICE THREE CENTS ON TRAINS AND NEW STANDS FIVE CENTS Wl po can MM jl iinwwir -z IFFSi mmm KING CALLED Good Evening! SKY VOYAGERS Highway Board To CITY PROPOSAL Advisor Quits MEIER TO FILL VACANCIES IN Pay Bond Interest On SalmonRiverDistrict The supreme court, in a divided opinion of four to three, held today that the state highway commission is required to assume interest indebtedness of the salmon river-Grande Ronde Highway Improvement district as provided by chapter 298 Laws of 1933.

The prevailing opinion is written by Jus Sips for Supper By DON UPJOHN What the special session needs Is all the 6.uallflcations of a good pitcher lots of speed and control. But the boys are buzzing like bees around a comb all hoping to grab a- little of the honey. It'll take stout heart and steady head to be legislator In this session. We note among the numerous fool attempts to clog up the legislative mill is one to repeal the gin marriage law. If that goes through it's going to make a lot of people sore who had to wait five days for their marriage certificates.

All they'd had to do would have been to wait for the legislature to repeal the law and then they wouldn't have had to wait five days. Judge Reed, J. of P. and P. at Gold Hill, Jackson county, is a visitor In our midst looking over the legislature.

It beats heck how these Jackson county boys can travel around and also bet on the University of Oregon football team. It shows that prosperity must be on a regular rampage down In those parts. If weather like today keeps up soon be out picking crocusses, daffodils, violets, et ai and begin thinking about going swimming again. Workmen made good progress today sewing the buttons onto the pedestrian crossings at the corner of our main streets. The color of the buttons doesn't match the sur rounding buildings as well as they might but counting the buttons will provide a favorite sport for the financiers, lawmakers and Intellec tuals who gather at the street corners dally to solve various big prob lems.

Mayor Doug McKay, when asked for an Interview this morning as to nls aesthetic opinion on the appear ance of the street buttons declined to comment. "I wish the city was as well buttoned up on the water deal as are inose street corners, said Doug. Speaking of the water deal It be gins to look as though the city would have to send for Senator Mc- Nary. If this thing keeps up folks will begin to think after awhile that the water company doesn't want to sell out to the city. At latest reports Frank Perry's frogs were still refusing to go to sleep and were croaking from craw fish.

If worst comes to worst Prank might invite Doc Barrick's quartet in to sing for his froggies some of these evenings. Apparently the fiogs like the night life about as well as their master. Charity and liquor control are two big Items confronting the special session. Let's hope with the legislature, that inasmuch as charity begins at home, liquor control will begin the same way. STUDENTS TAKEN WITH THEATER LOOT Portland, Nov.

21 (IPX Some 62,000 worth of moving picture equipment, allegedly stolen from the Majestic theater In Corvallis, was recovered by police Monday from the homes of two Oregon State college stu dents. The students, Frank Gilbert, 21 and Carl Miller, 18, were arrested in Corvallis and Portland police searched their homes at request of Corvallis authorities. Ahnnt. 13 OnO wnrth of pmilnment. was said to have been stolen from the theater.

tice in wmcn justices Bean, Kelly and Bailey ooncur. Dissenting opinions were written by Justices Campbell and Rossman, with Chief Justice Rand concurring In the opinion of Justice Campbell. The action was brought originally in Yamhill county to require the highway commission to pay the sum of $3,150.29 covering cumulated interest on bonds of the highway district. The lower court held in favor of the plaintiff and the defendants appealed, raising question as to the constitutionality of the act. Justice Belt In construing the act In question says: "We fall to see wherein the act obligates the state to pay these bonds.

The legal obligation to pay this bonded indebtedness still rests upon the highway Improvement district. The state has not undertaken to adopt the liabil ity of the district nor to put itself in place of the district. It Is within (Concluded on page 8, column 1) NEW CIVIL WAR STARTS IN CHINA Shanghai, Wednesday, Nov. 22 (IP) -A new civil war threatened China today. Fukein province has revolted against the Nanking government and set up an autonomous administration, of its own, according to re ports front Foochow, provincial cap ital.

It was reported the Fukeinesc con cluded a peace agreement with the Klangsi communists against whom Marshall Chiang Kai-Shek, Nanking generalissimo, had been warring in tensively since last May. All central government revenues at Foochow were reported seized. The reports said the new admin istration's foreign minister was Eugene Chen, Influential Cantonese leader and one time foreign minister for all China. One unconfirmed report said Chen had arranged a $3,000,000 silver loan with Japan. The Nanking government immedi ately ordered the central navy at Shanghai to hold Itself In readiness to proceed to Foochow at a mom ent's notice.

The situation in Shang hai was tense. All public meetings and parades were banned following a conference between Mayor wu Teh-Chen and military and naval leaders. GRAPHS RECORD VIOLENT QUAKES New York, Nov. 21 UP) By co. ordlnatlng data from Seismographs in various parts of the world, Ford-ham university experts reached the conclusion today ti.it last night's earthquake, described as one of the most violent In recent years, ccn tered In faraway Greenland and Baffin Land.

"That explains," a university spokesman said, "why no one has heard anything about damage. Previously we had thought the earth quake centered in the region of Cen tral America. We do not usually look for such things' In the far north, as they don't occur in that latitude frequently." Baffin bay Is to the north of Da vis strait, across which Charles A. Lindbergh and his wife flew a few months ago on their way to Europe. TURNED DOWN BY COMPANY Exchange of Bonds Jeo pardize Interests of Other Bondholders Mayor Sees Direct Loan From RFC for Purchase Only Solution Pointing out that acceptance of the offer of the city of Salem for purcnase of the local plant of the Oregon-Washing ton Water Service company on the basis of an ex change of bonds would have the effect of Jeopardizing the interests of the holders of other bonds of the company, E.

C. Elliott, president of the. Oretzon-Washington. this morning notified Mayor Douglas McKay of the company's rejection of the -city's offer. The notification, made through J.

T. Delaney, district manager. and Walter E. Keyes, local attorney. is the result of telegraphic communication between Elliott and O.

T. Chenery, president of the Fed eral Water Service company, parent concern of the Oregon-Wash ington. After conferring with trustees for the bond holders Chenery advised (Concluded on page 8, column tfc nnn nnn in 111 uirnin riup dWttK5 lIMt Washington, Nov. 21 Boom time banking which enabled Wall Street to inflate General Theaters Equipment, common stock by 60 percent in July and August, 1928, when the securities were being unloaded on the Investing public were exposed today by senate investigation of the Chase National bank. The transaction made $8,800,000 for the bankers and brokers In about three weeks.

They sought to dispose of 350,000 General Theaters Equipment common shares but later In-creased the block to 500.000 shares. The so-called original group on July 9 bought the stock from General Theater Equipment at $20 per- share. This group was composed of Pynchon and west and CO, Halsey, Stuart and Co. W. 8.

Hammons and and Albert Wiggin's Shermar corporation. These Insiders passed the stock on to a "purchasing group" at $28 and on August 1, 1929 was delivered to a "distributing group" at $32. The latter group sold the stock to the public. General Theater Equipment, went into receivership last year. Prom the bankers group to the pub lic the price of the stock was raised $12 a share.

CITY PAYS FEE TO LEAGUEJ1F CITIES Over the protest of Alderman H. H. Vandevort the city council last night voted to pay its assessment of $25 to the Oregon League of Cities. The money will be used in the furtherance of legislative matters In which the cities are inter ested and many of which pend be fore the special session of the legislature. Letters received from the league informed the city that W.

M. Brlggs of Ashland has been retained as attorney for the league. He is to be in Salem during the special session. PLAN MERGER OF 1 CHICAGO COLLEGES Chicago, Nov. 21 (JP) The Chicago Tribune said today that unless some unforeseen developments arise to prevent It, the University of Chicago and Northwestern university will be merged into a single educational unit.

A committee, the newspaper said, has been named to study the administrative and educational feasibility of the plan. Edmund B. Day of the Rockefeller foundation, John C. Me it I man of the Carnegie foundation and L. Coffman, president of the University of Minnesota, were named as the members of the committee, which has not yet made its report.

First reports of a merger between the two institutions were heard cev-eral months ago, but at that time it was said that a plan of consolidation merely to eliminate duplication of efforts was under IDLE PARASITE BY LABORITE Monarch Interrupted During Speech from Throne by M'Govern ncident Ignored as King Pledges Every Effort For World Peace London, Nov. 21 (LP) King George, finishing a state speech to parliament today, stood in ermine robes before his throne and heard John McGovem, hot headed labor mem ber of commons, shout that those present were parasites, living on the suffering of the poor. "You are a gang of lazy, idle par asites, living on the wealth other people create," shouted McGovern, So closely did the interruption of the august gathering follow conclu sion of the king's speech from the throne to the new session of parliament, in the house of lords chamber, that it first was thought his speech had been broken by McGovern. The king and queen, the queen In her famous crown jewels, were standing in front of their thrones. They looked straight ahead, ignor ing the incident as the angry former plumber from Glasgow shouted his impromptu denunciation of the gathering.

The king had reviewed both in ternational and domestic affairs in his brief speech. ''The central purpose of my gov ernment," the king had sold, "In international affairs Is to promote ana sustain by every means in then- power peace in the world." He pledged continuous efforts to promote disarmament and coopera- (concluded on pnge column 31 MISS PERKINS ASKS FOR FACTS (Copyright, 1833. by United Press) Washnigton, Nov, 21 (IP) Secre tary of Labor Frances Perkins has thrown her backing behind government statisticians in a battle to re quire full and frank statistics from Industry under NRA. This group alleges that NRA is not requiring adequate statistics from business concerns under codes. Figures called for by various codes are not sufficient, It is alleg ed, to form the basis of intelligent future planning which is sought by the NRA program This is another phase in a growing controversy over statistical information in the new deal.

Everett Sanders, chairman of the rcpubli can national committee has charged that the administration is cen soring figures Intended to reflect business conditions under tne re covery program. This charge grew out of the ac tion of Recovery Administrator Hugh 8. Johnson in attempting re cently without success to induce the federal reserve board to withdraw from Us monthly summary of busi ness conditions a statement that declines had been marked in in dustries operating under codes. In the next issue of the federal reserve board bulletin, no reference was made to the effect of NRA on business conditions. PROCLAMATION FOR THANKSGIVING DAY Warm Springs, Nov.

21 (IP)- In a proclamation expressing his gratefulness for "the passing of the dark days," President Roosevelt today called on the nation to ob serve Thanksgiving, Nov. 30 The document, free of the usual "whereases" and "be It resolved," cited the courage of the pioneers of the land, pointed to a new spirit of dependence of one another, friendship between capital and labor and asked "for a clearer knowledge by all nations that we seek no conquests." 10 CENT INCREASE IN PRICEOF GOLD Washington, Nov. 21 IP) A price of $33.78 was fixed today for RFC purchases of newly-mined gold, an increase of 10 cents over yesterday and a new nigh. The quotation was still below the world Drlce of the precious metal. It was $33.81, on the basis of sterling opening at $5.3214 and ranged upward from that point as the dollar weakened.

The domestic price was new high for that figure. BACK TO EARTH IN HEW JERSEY Stratosphere Explorers Report Delightful Trip Up 59,000 Feet Night Spent In Marsh Sleeping in Deflated Folds of Balloon Bridgeton, N. Nov. 21 America's first stratosphere balloon jolted to rest in the marsh lands southwest of Bridgeton, at 6:50 p. yesterday.

As hundreds oi persons searched the pine woods, cranberry bogs and cultivated farms in southern New Jersey, Lieutenant Commander T. O. W. "Tex" Settle and his aide, Major Chester L. Fordney, slept the night through wrapped up in the deflated fabric of their big balloon, awaiting daybreak.

At 8:44., today Major Fordney trudged through the marsh lands, walking until 9:30. a. when he reached the farm home of S. N. Johnson nine miles southwest of Bridgeton.

'I'm hungry and I'd like to use the telephone," calmly announced Fordney to the startled farmer, Then he took up the telephone and notified the world of the balloon- ists' triumph. Wo had a delightful and unto ward trip," Major Fordney said, "except that we came down so fast we had to throw things overboard as fast as we could to lighten ship, 'Although it was a pretty rapid landing, neither of us was hurt. (Concluded on page 0, column 8) ACCORD WITH RUSSIA NEAR (CopyrlBht, 1933, by United Preu) Washington, Nov. 21 (IP) A Soviet American agreement which would expunge the past and enable both countries to inaugurate their renewed diplomatic relationship with a clean siate may be reached Thurs day. Complete, final settlement of Russia's debt to the United States.

American private claims against the Soviets for confisticated property and Moscow's counter-claims for America's 1918 military expedition to Archangel, would be included in the significant agreement If negot iations Commissar Maxim Litvinoff is conducting under high pressure with the state and treasury departments are successful. Though not yet within reach, tills historic accord is sight, the United Press was reliably informed, and both governments are hopeful that the perplexing financial Issues be tween them may be adjusted with in a week of last Thursday's 1 sumption of diplomatic relations. Litvinoff and the American nego tiators, Ambassador-Designate Wll liam Bullitt, Undersecretary of State William Phillips and Acting Secretary of the Treasury Henry Morgenthau, are using the utmost ingenuity In a determined ef fort to come to terms on the sole remaining obstacles of the past which might impede Russo-Amerl can harmony. DAM CONTRACT LET Washington, Nov. 21 (P) Award of a (668,500 contract for excava tion work on the Bonneville dam site, Columbia river, to the General Construction company, Seattle, was announced today by the war depart ment.

At Portland phone call at 6:45 Monday, "Well, I see you got your man, man's voice said to Polhemus when he answered the telephone, and the caller then hung up. On November 7, Polhemus report ed that a shot had been fired through a window of his home. At that time police found a 21 calibre bullet lying on the kitchen floor. In their reconstruction of the crime, the detectives believe It un likely that Akin was shot from the doorway. The door had a check chain on the Inside which allowed It to be opened only a few Inches after it was unlatched.

This chain (Concluded on page 9, column 7) LEGISLATURE Senate Approves Dunn Bill for Representatives From Jackson County public Hearings Set On Truck Bill and On Unemployment Voting 32 to 6 with two absent, the senate approved the amended Benator Dunn bill providing for the Immediate filling of two vacancies In the house of representatives from Jackson county and one in the sen ate from Washington county after rejecting 16 to 12 a substitute bill offered bv the Judiciary committee Tuesday morning. Voting against the bill were Senators Burke, Dick-eon. Hazlctt, Hess, Strayer and Zimmerman, The Dunn bill, after the present emergency is taken care of by ap polntment of the governor, specifies that In the future such vacancies shall be filled by the county court or similar body. The Judiciary mea. cure, as outlined by Senator Upton, specified that In case of an emer gency, the secretary of state shall notify the county court or board and set a time and place for the lining of the vacancy and If agreement is reached within three (Concluded on page 8, column 7) JOBS AWAITING OVER 10,000 Portland, Nov.

21 (P) More than 10,000 men and women whose names now appear on the relief rolls of the counties of Oregon, will receive Jobs under the civil works administration program within a lew weeks. The first group may be at work before the week ends. Raymond B. Wilcox, head of the Oregon unit of the CWA, an- nounced today that 50 per cent of the persons who will fill the allotted 21,000 Jobs in this state, will be taken directly from the relief rolls. The remaining 50 per cent will be placed before Dec.

15. These men and women will be drawn from the federal re-employment service lists in the various counties. Wilcox explained that It Is futile for unemployed persons desiring work to apply at the office of the state relief committee or to any of the committee members for places. "First," he said, men and women will be selected by the county relief organizations, from persons on the relief rolls prior to November 6. This class will embrace 50 per ent of each county's allocation.

"We also have Instructions to Blace the remaining 50 per cent before Dec. 15. These workers will be drawn from the federal re-employment service lists In the various counties. "Persons in need of relief can apply In the usual manner, but those not on the relief rolls should register, at once with the reemployment services of their counties. Thev will then be called out when ever Jobs for which they are quali fied are available." EX-GOVERNOR HAY DIES IN SPOKANE Spokane, Wash, Nov.

21 VP) former Governor M. Hay ol Washington dropped dead in his of- llce at 9 o'clock tms morning, ioi lowing a heart attack. Governor Hav was a native ol Adams county, Wisconsin, and came to Washington Territory In 1868 settling in Davenport. In 1889 he moved to Wilbur, where he lived 16 years, moving to Spokane In 1908. He was elected lieutenant governor of Washinaton in 1908 and suc ceeded to the governorship In March.

1909. on the death of Gov ernor Cosgrove. He retired at the nd of that term, in 1913. Hay was a larger farm and land owner, both In the Big Bena coun-trv of rentral Washington and Cal gary. Alberta.

His holdings totaled 25,000 acres on both sides of the Canadian border MEMORIAL TO CONGRESS A 1oInt memorial to the presi dent of the United States was in- troduced In the senate Tuesday morning, asking for the passage of the Frazier bill before congress. The bill has as Its purpose the refin ancing of farm loans by the government at a lower rate of Interest to prevent widespread foreclosure. The memorial carried the names of Senators Zimmerman, Burke and Brown and Representative Oleen, a a LINDY LANDS IN HORTA HARBOR Horta, Fayal, Azores Islands, Nov. 21 (IP) Col. Charles A.

Lindbergh made a spectacular landing in the harbor of Horta today, after a thrilling battle against violent squalls and rain storms in his 1000-mile flight from Lisbon. Practically the entire populace of this Island turned out, despite the threatening weather, to welcome the American flier and his wife, Mrs. Ann Morrow Lindbergh. Upon landing he Informed officials that he was unable to give details of his further plans. Military and naval dignitaries, the town officials of Horta, and cheer ing crowds roared a welcome to the colonel as he swooped down to swift landing.

Young women with bouquets thrust flowers at the fly ing couple while the government of ficials beamed a welcome. Nine hours and seven minutes were required for the colonel to fight his way over the stormy 1000 miles. It appeared at times that he had been forced to veer from his course to escape the worst of the squalls. His speed often fell below 100 miles an hour, although under fav orable conditions his 700-horsepower motor will drive the big plane at 150 miies an nour. Lindbergh left Lisbon at 7:10 a.m He had Portuguese government as sistance, and kept in radio communication with the Ooncalves Zarco, which had been assigned to watch for him at San Miguel, easternmost point of the islands.

TREASURY GAG BRINGS PROTEST Washington. Nov. 21 (tPh-In ad dition to his order prohibiting treasury officials from giving Informa tion to the press, Acting Secretary Morgenthau has instructed all officers or employes of the treasury to submit all public addresses they may make to his assistant, Herbert E. Gaston, for approval in advance of their delivery Headed "Treasury department order number 1," these instructions were issued today: In addition to the paragraph regarding press relations, the order announced that all legal matters affecting the department would be under the charge of Herman Oil phant, general counsel to the acting secretary. He served with Morgenthau In a similar capacity in the farm credit administration All administrative matters, including personnel and departmental budget, are to be under the direc tion of William H.

McReynolds, ad ministrative assistant to the secre tary. Newspaper correspondents who cover the treasury regularly tele graphed President Roosevelt at Warm Springs protesting -he re strictions imposed by Morgenthau and asserting that In their opinion relations between the treasury and the press had bocn "seriously im paired." from Breitenbush hot sprinRs and run alone the mountain the Mt. Hood loop is being tween Detroit and Breitenbush and Is expected to be the basis for the final link In what will eventually be one of the most beautiful scenic roads In the world. Just this week two-great 60-horse power caterpillars were addrd to the equipment on tne jod wncre anom er tractor has already been in on the work. The two additional tractors which Just came In were driven by Robert E.

Lee, SO, and Wayne Walker, 55, who had been operating them on another Job 10 miles east of Fish lake. The Informant under stood the work that these men were on was in connection with a Job of (Concluded on-page "9, column 7) O. M. W. SPRAGUE former financial advisor to the Bank of England bas resigned as execu tive assistant to the secretary of the treasury, predicting inflation.

SPRAGUE QUITS DISAPPOINTED Washington, Nov. 21 (tP) O. M. W. Sprague resigned today as special adviser to the treasury and as serted "there is no defense from a drift into unrestrained inflation other than an aroused and organized public opinion." "It is for tne purpose oi contnouc- ing as I may to such a movement that, with feelings of profound dis appointment, I sever my connec tions with your administration," he said in a letter to President Roose velt.

"Unhappily I now find that I am in such fundamental disagreement with the monetary policies which have recently been adopted that I have decided to resign my post in the treasury." He objected to the fact, he said, that he had been given "no oppor tunities whatever" to discuss funda mental questions with the presi dent. Otherwise, he said, it was pos slble that there might have been a meeting of minds. I am opposed to the present policy of depreciating the dollar through gold purchases in foreign markets for two reasons," he said, I am convinced that this policy will prove ineffective In securing a speedy rise in prices. This is not because of any inability to depre elate the dollar. When a govern ment announces its determination to depreciate its own currency it it can certainly accomplish that re sult, and without the necessity of acquiring any considerable amounts of gold in other countries; since no sensible person will desire in such circumstances to acquire more of the currency." F.

D. AND FORD MAY HAVE CONFERENCE Warm Springs, Nov. 21 (IP) The possibility of a "little. White House" conference with Henry Ford arose today as President Roosevelt went forward with the task of di rccting his gigantic recovery pro gram from his vacation resort on Pine mountain here, While the temporary executive of fices-said that no formal engage ment for Ford had been requested or made he would be received by Mr, Roosevelt if he came here. At the same time close administration friends made It clear that they would not be at all surprised if the motor manufacturer arrived within the next few days for a visit.

In this connection, It was pointed out as significant that General Hugh S. Johnson, recovery admin istrator, would be in the neighbor hood coming to Atlanta for an NRA address. It was not re vcaled, however, as to whether he would journey the 75 miles from that city to Warm Springs to be in on a Roosevelt-Ford discussion should one develop. Ocean-Size Locks Asked for Big Dam The Dalles, Nov. 21 0P A brief requesting that navigation locks at the Bonneville dam be constructed of sufficient size to permit passage of ocean-going ships, will be for warded to Washington, D.

this week. At a meeting here last night the Council of tl.e Inland Empire Marl-time conference Instructed a staff of experts to proceed at once to Corvallis where, In conjunction with Dr. W. H. Breesen and other state college experts, the brief will be completed.

Building Road To Police Without Clue Skyline Trail From To Identity Of Slayer Breitenbush Springs Of Akin Portland, Nov. 21 (U.R) Although all the forces of the Portland police, state police, and sheriff's office, were thrown into the investigation of the murder of W. Frank A dream of years of a road to hook onto the Skvline trail heights to connect up with brought to fruition by gangs oi men working under the CCC and public works administration, according to reports brought down from that country. About 60 men from the CCO camps and 30 men under pub-llo works financing are being used on the Job. The men have now finished grading the road about four miles beyond Breitenbush hot springs and will continue on as long as weather will permit and until driven out by the snows.

The distance to connect up is about 12 miles and Indications are that work will be resumed in the spring to finish the distance. The road will be a regular 12-foot forest road, similar to the one be Akin, former special agent of trie governor office; tney remained without, clues today of the Identity or the motive of the slayer. Even though Mrs. Akin Immediacy attributed Akin'a revelations of alleged Irregularities In the affairs of the port of Portland commission, In a survey which he recently completed for the state as motive for the crime, police were unable to connect this directly with the shooting. Another mystery element entered the case when James B.

Folhemus, manager of the port of Portland and chief target for Akln's accusations In the port report, told police I he celved an anonymous tele.