La Grande evening observer. (La Grande, Or.) 1904-1959, January 28, 1932, Image 1

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La Grande evening observer., January 28, 1932, Page 1, Image 1

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Newspaper Page TextCITY EDITION Full Associated Press Leased Wire Service 5 PAGES TODAY Only Newspaper Printed in La Grande Covering Union' and Wallowa Counties ' VOLUME 30 LA GRANDE, OREGON, THURSDAY, JANUARY 28, 1932 eastern omdqonb lkaplvo newspaper MEMBER ASSOCIATED PRESS AND A. B. O. NUMBER 129 mwxm WASHINGTON AWAITS WORD FROM JAPAN State 'Department Asks For Expression of Shanghai Intentions. NOTE SENT ALSO TO GREAT BRITAIN Principal Interest of United States is to See That International Land Not Invaded. WASHINGTON, Jan. 28 (P) While the . American government watched the strife In Shanghai with mounting apprehension, Indications enme late today thnt It will refrain from act ing by Itself to alter the Japanese course. MANILA, Jan. 29 (Friday) iff) Four destroyers of the United States navy fleet here ordered all men aboard early today, awaiting orders to pro ceed to Shanghai. WASHINGTON, Jan. 28 (P) Def inite action by the United States In the Shanghai situation was delayed today pending replies by Japan, and Great Britain to separate diplomatic overtures to them on the problem. The United States has asked Jap an for on expression of Its Intentions in the increasingly delicate situation. Meanwhile Secretary Stlmson was discussing with, the British govern ment measures which might be taken. ItrUlHh Not Anxious The indications in diplomatic clr cles were that Great Britain is not anxious to become involved actively, The United States has asked Great Britain for an expression of how Lon don feels the problems could best be dealt with. In tho discussions between the two powers they are seeking to determine how far each is prepared to go to pro tcct Its interests. Reports to the state department from American Consul General Ed win S. Cunningham, at Shanghai, re ferred to the state of "emergency' and an apparent attempt on the life of the Japanese consul general by bombing. The flagship of the Japanese war ships now at Shanghai, Cunningham reported, had been removed to in front of the consulate, frontier on tho river. I Blockade Reports IHscredltert One of the principal interests of tho United States today was to see that no forces be sent into the in (Continued on Patfe Eight) SIX MINUTES ARE REQUIRED FOR CITY MEET The city commission meeting last night wos another of those usually brief affairs, the actual time taken amounting to around six minutes After the reading of the minutes and the city manager's report, the only other business was the cancelling of a bond for a local business place at the reauest of the bondsman and the acceptance of a new bond In Us place. The manager's report stated that the recent cold spell slowed up gravel hauling to some extent, due to frost In the pit. Also that September war. rants amounting to 810,718 were call' ed In Jan. 26. leaving October, No vember, December and January war rants outstanding amounting to $35, 926.60. Cash on hand at the end of the week was S17.316.68, divided as fol lows: La Grande National bank $0 026.44, tT. 8. National bank $6794.97, cosh. $594.27. , Judge Sweek Will Be Here Tomorrow Circuit Judge Calvin L. Sweek, of Pendleton, will be in La Grande to morrow to hear motions and cases assigned to him In the circuit court. Two coses which will be tried are those of tho Fletcher Oil company vs. McLaughlin and Leonard vs. Rodes. The regular February term of court opens in La Grande at the Union county court house Monday, Feb. 1. with Judge J. W. Knowles on the bench. $ & Q WEATHER FORECAST Oregon: Unsettled tonight with local snows In the moun tains; Friday generally fair: cold in the northeast portion: fresh north winds offshore. WEATHER TODAY 7 a. m. 24 above. Minimum: 20 above. Condition: Cloudy. WEATHER YESTERDAY Maximum 35. minimum 19 febove. Condition: Cloudy, snow half an inch, moisture .05 of on Inch. Range 16 degrees. WEATHER JAN". 29, 1931 Maximum 54. minimum 32 above. Condition: Clear. Range 22 degrees. Holman Will Be La Grande Guest Next Wednesday State Treasurer to Speak at Open Meeting of Ro tary Club in the La Grande Hotel. Rotarians of La Grande are com pleting arrangements this week for an open ' meeting to be held next Wednesday at noon at the La Grande hotel at which time Rufus Holman, state treasurer, will be the guest speaker. " The chamber of commerce, Lions club and others have been Invited to attend the session. Mr. Holman Is to leave Salem Mon day for a week's inspection and speak ing trip in Eastern Oregon, accord ing to word received here by State senator uoion K. Eberhard. Mi'. Holman, In a statement at Salem, declared the trip was actuated by desire to complete an "all-season" view of the state institutional prob lems and to acknowledge speaking Invitations received In recent weeks, Inspections of the new unit at the tuberculosis hospital at The Dalles and of the new wing being con structed to the state hospital at Pen dleton are Included in the treasurer's itinerary. Monday Mr. Holman . will speak at Hood River and The Dalles. On Tues day he will be in Pendleton, in La Grande Wednesday, Baker Thursday, John Day Friday and Burns on Sat urday. Young People In Church To Give Program Sunday Upon recommendation by the gen eral assemibly of the Presbyterian church, next Sunday, Jan. 31, has been seft apart as young people's day, and will be observed by the young people of the local Presby terian church, with a suitable pro gram on Christian education, at 7:30 o'clock, taking the place of tho regu lar evening sermon period. The theme of the day is "Christ In and Through Us!" There will be several addresses by members of tho Christian Endeavor societies, music by tho orchestra, other special num bers, and a service or commissioning, incorporating a candle lighting, to be conducted by the pastor, suojects Include "We Would . Servo Our Church," "We Woild Servo. Other People," "We Would Serve Our Mos tei'," and a part of the program will incorporate the active membership pledge. The following program win ae pre sented with Robert Enkin presiding Prelude by the Christian Endeavor orchestra. Congregational singing. Tho presiding officer will announce tho purpose of the meeting. Scripture readings by the Misses Margaret McAlllBter and Marie Flo berg. (Continued on Page Eight) Willard Marks Takes The Chair For Third Time SALEM, Jan. 28 P) For the third time within a year, Willard L. Marks, of Albany, president of the senate, is occupying the executive chair for the state of Oregon. Murks arrived to day to take over the duties of that department during tho absence from the state of Governor Julius L. Meier. Marks was governor several days last summer while Meier was In San Francisco. His longest term was the month of December while the gov ernor was In California. He will be governor about three weeks his third tlmo in the chair, while Meier is In Washington, D, C, In the interests of tho Columbia river development. Oovernor Marks said he would give no consideration to pardon applica tions, but would confine his activities to routine affairs and administration of the affairs of state as they are presented. A land board meeting has been scheduled for today, but there will be no board of control meeting. Petitions Out To Repeal Prohi Law THE DALLES, Ore., Jan. 28 UP) Bearing tho names of more than 250 registered voters In precincts of the northern part of Wasco county and of The Dalles, petitions calling for tho rcpeol of tho Oregon prohibition law were filed Wednesday with Henry W. Scherer, county cleik. The netltions were circulated for tho purpose of placing on the ballot a repeal statute propescu vy B. Critchlow. Movement of Flour To China Continues PORTLAND. Ore., Jan. 28 De spite the rumblings of war guns in and around Shanghai, the movement of the farm board s 16.000.000 bush els of wheat and flour to China con tinues without change. Henry W. Collins, regional director of the Farmers National Grain corporation, Mid todav. He is supervising the movement. Collins admitted, however, he is somewhat disturbed by today's de- veloDments, but he said he has had no orders to halt the movement or delav loading of ships no await fur ther developments. The board will continue to move the wheat and flour on previously arranged schedules, he declared. DEMOCRATIC TARIFF BILL IS REPORTED Senate Finance Commit tee Votes An Unfavoz--able Report on Measure NEW TAX BILL NOT TO BE RETROACTIVE Hoover's Three Appoint ments to Keconstruction Corporation Confirmed in benate. WASHINGTON, Jan. 28 P) The senate finance committee today voted an unfavorable report on a revised house Democratic tariff bill. There was no roll call on the mo tion to send the bill to the senate with an adverse report, but an earlier move to report it favorably resulted in a tie, 10 to 10, with Senator La Follette (R Wis.) joining the nine Democratic members In voting for it. Before the bill can come up on the floor, Chairman Smoot must make his report and the bill he sent to the calendar to await its turn. The measure contains several amendments proposed by Senator Harrison of Mississippi, ranking Democrat on the finance committee. As it stands now, the bill would restore to congress the power held by the president to increase or de- (Continued on Page Five NORMAL SCHOOL WINS SIXTH GAME Enterprise Beaten 49 to 29 JPlay Whitman Sat-, urday, Ashland Monday Tho blue and gold Mbuntalneers of Eastern Oregon Normal school won their sixth straight basketball game of the season at Enterprise last night. defeating a revamped all-star team. 49 to 29. A week ago the Enterprise squad -lost to the Normal quintet hero 88 to 2. Enterprise, bolstered up with Hays, forward, and Craven, center, made a race of it the first half, which ended 21 to 17 in favor of the Moun taineers. Enterprise led 9 to 7 at tho end of the first period. In the third quarter the Normal school gradually drew away from the home team and In the last five min utes the score was safe enough for Coach Bob Quirm to throw his sec ond stringers into the fray. Play Wliltmiin Next Tho Mountaineers face one of their toughest games of tho year at Walla Walla Saturday night when they play Nig Borleske's cracW Whitman col lego quintet. Whitman is being picked by most sport writers to win the Northwest conference champion ship this season, and the La Grande school will go into the game tho un derdog. Borleske has three teams of about equal strength this year wnue Quinn must depend upon only his first fivo men to bear tho brunt of tho attack. And next Monday and Tuesday the Southern Oregon Normal school of Ashland will Invade La Grande for a (Continued on Page Two) OREGON RATES ON GRAIN NOT TO BE CHANGED SALEM, Jan. 28 P) Oregon rates on grain and grain products will re main the some, unaffected by tho announced resumption of former rates made by railroads today. Charles M. Thomas, public utilities commissioner, said here. The old rates will affect interstate commerce only, but the intrastate rates will remain the same as has been In ef fect since April. 1031, he said. Tho reduction, averaging about 20 per cent, was ordered by the state commission last April, based on the interstate commerce ruling, which howerer did not berome effective until August. Tho U. 8. supreme court decision as of January 4, this year, holding the reduction by the Interstate commerce illegal, likewise did not afect the Oregon order. Enrollment at High School Eight Students Short of The 700 Mark The enrollment in the La Grande High school was within eight of the 700 mark today, near the end of the second week of the second semester. School authorities doubted that the 700 mark vould be reached this year, with only a few students likely to enroll from now on. The High school registration went up to a peak of 720 last year during the second semester, but since then many believe that the population of the city has decreased to some ex tent. As a matter of fact, the High school enrollment has been running from 25 to 30 behind last year's fig ures throughout the present school year. .19 Finish Eighth Grade Thirty-nine students came into High school at mid-year from' the eighth grade, and only one student completed his work as a senior. This student, however, will not receive his Seek To Quash ; Indictments In . Hawaiian Case Defense Attorneys Charge That Grand Jury Was Coerced By Circuit Judge Cristy. HONOLULU, Jan. 28 (P) A motion to quash tho second degree murder Indictment against Mrs. Granville Forte scue and three navy men ac cused of slaying, a suspected woman attacker was filed here Wednesday by defense attorneys who charged the grand Jury had been coerced in its activities by Circuit Judge A. M. Cristv. Second degree murder indictments had been returned grudgingly by the grand jury against the four, charg ing them with slaying Joseph Kah- ahawal, suspected assaulter of Mrs. Portescue's daughter. The Indictments I were returned only after Circuit Judge A. M. Cristy once refused to accept the jury's proi- fered report and. raised the question of anarchy. The defense Immediately seized upon the grand Jury's apparent un willingness to return an Indictment and Attorney Montgomery Winn pre pared to ask the court to quash the Indictment. His plea is based, on tno contention that coercion was used to make the Jury return the formal indictment. To Fix Ball Bail also was to be fixed for the defendants, who include. Lieut. Thom- as-H. Massie, Mrs. Portescue's son-irir law, and E. J. Lord and Albert O Jones, enlisted men. They have been held at Pearl Harbor naval base with out bail since their arrest nearly three weeks ago. Both Lieutenant Massie and Mrs, Portescuo expressed gratitude at the. returning of the indictment and in dicated they expected ultimate vin dlcatlon. Their feelings were 'ex pressed in cables, the lieutenant cabling to his mother in Winchester, Ky., and Mrs. Portescue to her hus band in New York. BILL HOWARD PROMOTED TO STATE POLICE Willard Tubbs, state policeman who came here from The Dalles few months ago, will be transferred to Baker on Feb. 1 to succeed Amos Holms, deceased. Mr. Tubbs had ?btu iil ehurgo of tho night shift in. tho La Grande area under the direc tion of Sergeant J. A. Robertson for the last few weeks. . Replacing Mr. Tubbs in La Grande will be Bill Howard, of this city, who was selected by state police head quarters from tho ranks of local po licemen. Mr. Howard is the second member of his family to become a state policeman his brother having been a state policeman in Western Oregon since the department was or ganized. Mr. Howard will continue tho night shift for the .present, it is announced. Police Chief Jim Stoffen stated today that Robert Coy will replace Mr. Howard on the local police force. Two Oregon Girls Are At Shanghai PORTLAND, Jan. 28 VP) Among the many former Oregon residents who are now living In embattled Shanghai are two Portlondcrs, tho Misses Margaret and Betty Lewis, graduates of Willamette university, and now tho only white women on the faculty of Mary Pornham college at South Oate, In the Chinese sec tion of Shanghai. Margaret graduated from Willam ette In 1928 and taught school a year before she went to the Orient three years ago. Betty graduated last Juno. She, like her sister, was a prominent mem ber of the Willamette student body, held many offices, and acted as May queen in" her senior year. . Tho Lewis family believes the girls will seek refuge In the foreign sec tion as soon as Presbyterian mission authorities decide life In tho Chinese quarter is unsafe MUS. HONNKIXY STKICKEV EUGENE, Ore., Jan. 27 UP) Mrs. Charlotte R. Donnelly, for the past 12 years head of the employment bur eau of tho University of Oregon Y. M. O. A. was found dead in her of fice last night. It is believed she died during tho afternoon. Tho body was found by Rolla Reedy, student president of tho Y, and Ralph Colo and J. Wilson, all residents of the hut. A physician said apoplexy was the cause of death. diploma until in May, when the regular spring graduation exercises will be held. Tho enrollment as of today, ac cording to school records, amounted to 692 In the High school, the second largest in the history of L. H. S. Supt. J. T. Longfellow announced that at the close of the first week cf $he new semester the total enroll ment amounted to 2212. of which 1559 were registered in the grades and 053 in tho High school. The 39 going Into the High school from the grades were not re -registered, which accounts for the difference In the two sets of figures. The total a year ago was 2322, a difference of 110 pupils, of whom 18G0 were In the grades and 602 In High school, Tho total enrollment at the end of December was 2165, showing an (Continued on Page Five) f : SHE KEEPS HER PROMISE . Ilccu-ie she: had promised her ihastmntd to abandon her rttago career, Hazel Forbes, former "Follies" beauty, lias refused since his death to accept offers for parts In new Broadway shows. , Unions Continue Vote On Railway Salary Dispute CHICAOO, Jan. 28 (IP) Agreement by railway labor upon a ten per cent voluntary wage reduction was augurod today In a resolution adopted by the Brotherhood of Railroad Trainmen, last of the 20 union groups to vote. Tho trainmen agreed to rejoin the brother organizations In seeking "the best settlement possible" but spe cified tho railroads must promise not to attempt another wage reduction jor a full year after tho termination Ol '.tllO CU11 vUIIipit, ltJU JfUlU O IWUU' i-.VS-T - - -.; CHICAGO, Jan. 28 ffl Votes of railway labor dropped once more into the ballot boxes today with the hope a count would end a three-day dead lock on the $215,000,000 wage sllco. After yesterday's last tally was counted last night, David Brown Rob ertson, chief of the workers, an. (Continued on Pago Five) Kidnapers Free South Bend Man Without Ransom SOUTH BEND, Ind., Jan. 28 (ff) Howard A. Woolverton, 62, promin ent South Bend business man sought throughout Northern Indiana and Illinois for 23 hours after being kid naped, returned alone to his home here at 11:36 o'clock last night with out ho said, having met the demand of his abductors for $50,000 ransom. A bit incoherent, and highly ner vous from hls experience, Woolverton was shielded from persons other than his immediate fnmlly and placed un der the care of a physician. Speak ing for the family, G. A. Farabaugh, an attorney, said Woolverton would resume his dally routine after a day or two or rest. Unshaven and exhausted from many hours of riding about blind folded In an automobile, under con stant guard' of two or three men, Woolverton after being lot out at tho outskirts of Michigan City, board ed an electric train and came to tho center of South Bend 30 miles away, without being recognized. He pro ceeded home 'immediately. Oregon Firm Gets Large Contract SALEM, Jan. 28 (Hj The Western Paper Converting company hero has started work on a contract to sup ply 100,000,000 glasslno bags for a New York firm. Tho glasslno bogs will bo used to cover "popslcles," a frozen sherbet confection. Tho or der will keep one department of the mill busy for the next nine months working continuously 24 hours a day, say officials of the company. An nouncement also has been mado that the company has ordered complete equipment for tho manufacture of products from cellophane. Company officials stato with the installation of this machinery about March 1, the company will bo the first on tho coast to bo equipped for tho manu facture of such products. OKKHON SCUMTOIl DIKS PORTLAND, Ore., Jan. 28 VP) Walnwrlght E. Heywood, 76, who 12 years ago retired after having won considerable reputation as a sculp tor, died at his home hero today. Heywood was born In Staffordshire, England. Ho twlco won tho South Kensington medal, once for design ing o carriage for King Edward VII, and again for a bust of a parliament member. He was a member of tho art Institute of Birmingham. Hey wood come to the United States to executo work for the St. Louis fair, and later participated In the Seattle fair. , FATHER SUICIDES AFTER SLAYINGS R i c h m o,n d Undertaker Kills Wife and Two Chil-: dren Early Today. RICHMpND, Col., Jan. 28 tVF) Leaving a noto in which he took sole responsibility for his act, Ed L. Berg, aged about 46, Richmond undertaker, today shot and killed his wife and two children and fatally wounded himself. Police removed him to a hospital where he died.'. ., Tho note road: "v ;' it km soloiy responsible for tho killing of my wife and two children and taking my own life. Your ver dict should bo easy." The note was addressed to Coro ner Aubrey A. Wilson, of Contra Costa county, also a Richmond resi dent. Calls Undertakers The killing, police said, occurred about 4 a. m. Berg telephoned to tho Berkeley undertaking parlors of hiB brother, Deputy Coroner Frank Berg, and talked to David E. Barrett, attendant In charge, "I've shot Jo," Barrett told -the Berkeley pollco Borg said, "and I'm going to shoot myself. Notify Prank." Tho Berkeley police, on receiving Barrett's report, telephoned the Rich mond police, who went to Berg's house. The front door was open. They said they found Berg gasping on tho floor of the front bedroom, snot through tho head. In a bed was the body of his wife, Josephine, about 32. She had been shot onco through tho head. Find I iodic of Children In a rear bedroom was found tho body of Frances M. Berg, 13, shot through the hoad, and in a crib the body of Barbara, aged 2ft, shot twice through tho body. Berg had been in business hero about a year. He formerly published a newspaper in San Rafael. Police said there was no concrete motive for tho wiping out of tho family, but that they understood business nao (Continued on Pago Sovon) TAX INCREASE ONLY HOPE OF REP. HAWLEY HARRISBURG, Pa., Jan. 28 P) Congressman Willis O. Hawley, of Oregon, co-author of the much-discussed Smoot-Hawlcy tnrlff bill, believes the credit structure of the government can only be maintained by "increased taxation." Speaking at tho closing session of tho annual convention of tho Penn sylvania Stato chamber of commerce, Hawley lost night outlined what con gress Is doing to avert a threatened federal deficit of $3,544,000,000 cfltlm ated at the end of the fiscal year 1933. He suggested a nation-wide Inves tigation of tho "imposition of taxes with a view to obtaining a more equal distribution of assessments. "A scientific system of taxation," he said, "could bo substituted for our present condition of inequitable and duplicate taxation." Plans For Soldiers' Home Nearly Ready POUTLAND, Jan. 28 (P) A Wash ington, D. C, dispatch to the Journal today said the veterans admlnlstra- ton has advised Representative Mar- tin, of Oregon, that plans for tho soldiers' homo at Roseburg are nearly ready and bids will be Invited early In February. Tho dispatch sold "tho abstracts have been sent to the adjutant gen oral for approval. Bids will bo open ed about the middle of March and construction will start Immediately afterwards." Hope for Rescue Of Three Score On M-2 Fading Supply of Otxygen Would He Jbxhausted Today Search Moves ' to New Location. FORT LAND, England, Jan. 28 fii Mysterious tappings under the water were detected today by the destroy er Tlu-ustcr on her listening appar atus, and tho rescue flotilla looking for the sunken submarine M-2 spur red Its operations as night fell. . PORTLAND, England, Jan. 2ft (?) Seaplanes flying over tho English channel off Portland today discovered a large patch or oil on the water which pilots believe might Indicate the presence or the sunken subma rine M-2. - 1 After circling tho patch- of oil sev eral times one pilot was able to see that oil was constantly coming to tho surface from below. In the cen ter of the patch was something which looked like a fender but could not Immediately be identified. The patch covered an area of four or five square miles and was located about three miles south of Portland bill, some distance from where Brit ish ships have been searching. PORTLAND, England, Jan. 28 (ff) Practically tho entire flotilla of the British navy which was searching for tho British submarine M-2 which sank In tho British ehannel Tuesday was moved to a new location today eight miles away from the spot pre viously searched. Hope for the rescue of the three score men who made up the crew of the submarine was practically aban doned today. Two days and nights of searching tho floor of Doad Man's bay, path way of treacherous tides in the Eng lish channel where tho submarine went down, failed to establish any contact' with tho vessel. Drag lines with which the spot was swept Btruck rocks and snogs and the rotting hulks of other tragedies of days gone by, but failed to locate the submarine. 'Wrong Place, Captain - Bays The new search was begun when Captain Howard of the steamer Ty- neslder, who said he saw the sub marine go down, told a correspondent of the London Dally Mall the search was not being made at tho right placo. Tho position he gave as - the spot where ho saw tho boat dlvo was sev eral miles awpt? from, where the seoroh was being made. He was crossing the ohannel in his steamer Tuesday when he saw tho submarine dive. Ho had never seen a submarine go down before, he said, so he supposed it was all right. Tho ship submerged Btern first, he said. Oxygen Exhausted Today, Tho 48 hours originally fixed as the limit of the supply of oxygen In tho submarine expired early today, although officials said tho crew might be abto to exist a few hours longer If tho hull was undamaged. Last night some of the bereaved wives and children were still gather ed on the Portland docks, hoping against hope. One , woman with two children, four and eight, years old, stood there tearfully, while the chil dren, not realizing the portent of tragedy, tugged 'at her hands, plead ing to go home because they were tired. Six-Mile Lower Powder Ditch Project Begun BAKER, Ore.( Jan. 28 (Special) Four farmers of the Lower Powder section, Rufus Bunch, Clarence Love, Mrs. Burnsldo and Mrs. Love, mother of Clarence Love, -have started con struction of six miles of ditch for ir rigation purposes. Tho project will Include 800 feet of tunnel. Tho ditch will bo an extension of tho Basche-Duncan ditch, one of tho old irrigation systems of the valley, Tho project is doslgned to furnish water for 600 to 700 acres of land lying In the tower end of Lower Pow der valley. The water will bo taken from tho Thief valley reservoir, which the government Is now building. Tho project will cover some land formerly partly Irrigated and some sagebrush land never cultivated. The (Continued on Page Throe) Gas War Extends Into Salem Area 6ALIJM, Jan. 28 VP) The reaction of tho gasoline war in Portland was felt here today when the majority of service stations reduced the prlco of gasollno from 18 to cents. It was announced the dealers were making tho cut as there had been no reduction In the wholesale prlco. Heaviest Snow In Ten Years, Report THE DALLES, Ore., Jan. 28 VFI Erlo dordon, chief ranger of the Du fur district of the MX Hood national forest, said today tliat from 0 to 10 feet of hard-packed snow covers tho high prairie country at an elevation of 0600 feet. Tho snowfall tho past winter has been the heaviest In near ly ten years, Gordon said. It Is ex pected It will not melt until AugUBt, insuring ranchers and cities depend ing on the runoff for Irrigation and domestic water, a plentiful supply all summer. : - JAPAN MOVES ON SHANGHAI AT MIDNIGHT Two Thousand . Marines Roll Into Chinese Quar , - ter Early Friday. , - FIGHTING BREAKS OUT, REPORTS SAY Japanese Warships Lay in Harbor Jieady Witn More Troops Despite Chinese Action. SHANGHAI, Friday, Jan. 29 (ffH Now and heavy fighting broke out In the Chinese quarter early this morning as the Chinese hurried up reinforcements three hours after 2000 Japanese marines hod marched Into the city. At 3 a. m. It looked as though the Chinese would be cleared out and a way would be opened for further penetration Into Chinese ter ritory. Japanese warships opened a heavy liombnrdment of the Chinese fort at Woosung, 18 ml lea from the mouth of tho VHmngpoo river, shortly after marines had occupied Shanghai to day. 5 . . SHANGHAI, China, Jan. 29 (Fri day) (P) Two thousand Japanese marines rolled into the Chinese quarter of Shanghai in motor trucks early today and fighting broke out on the edge of the . international settlement,- .. It was estimated there were 24,000 Chinese troops in .the vicinity of Shanghai but the Japanese were un der orders to clear them out of the Chinese quarter where many .reel,- -dents -are Japanese. : Japan has announced Its Intention of using force if 'necessary to supr press ant,-Japanese organisation outside the international quarter; - The Chinese municipal authorities capitulated last night to a Japanese ultimatum demanding dissolution of the objectionable organizations In side tho settlement. (Continued on Page Zaght) ) ' , ; ; third Attempt s: in month to wreck train watsonvtlle, cai., Jan. aa w) The third attempt this month to wreck the Lark, last San Franclsco Los Angeles train, damaged a heavy locomotlvo and three cars last night and held up trafflo 3S minutes on the coast line of the Southern Pacific, Locks on a Bpur switch and a sig nal box wore forced and a wire somo . 20 foet long attaohed to the switch, railroad Investigators announced. The signal registered clear untll: the train reached the switch, ,wnen xne wire apparently was Jerked and the train shunted off on the 300-yard long spur track. No arrests were made. - Railroad men praised the conduct of Engineer Fritz Meyer, of Son Fran cisco, who stopped the heavy, train without disturbing Its 200-odd pas songcrs. Tho locomotlvo ploughed nlno yards Into a gravel bunker at the ; end of the spur, damaging Its front end. Three cotb also were damaged, and hauled to Watsonvllle Junotlon for repairs. The cars of tho Lark were attached to the coaster and continued south ward with only 38 minutes delay to the train. Klamath Labor To ; Conduct Inquiry KLAMATH FALLS, Ore., Jan. 28 WV Tho Control Labor Council here will conduct on Investigation' Into the relationship of Klamath; Falls hospitals and the Btate Industrial accident commission. . A controversy arose last week when hospitals, placing a minimum of $4.60 to 95 a day for care of Injured workmen, declared they could not comply with tho commission ruling ollowing only sa.57 ior workmen coming under Its provisions. Wheat Today CHICAGO, Jan. 28 UP) Seesaw fluctuations In grain resulted today from stock market weakness offset by likelihood of a severo cold wavo overspreading various unprotected winter wheat areas. For the first time this season, July wheat, representing tho new 1932 crop, went to a premium over MS7, an old crop delivery. Muen mtereso by grain traders was shown in tho Japan-China clash, but no apparent market results wero uiscernimc, wheat finishing virtually unchanged from last night. Wheat closed Irregular, t !4 de cline to c advance, corn unchanged to c lower, oats unchanged to fto off, and provisions unchanged to a setback of 7 cents. PORTLAND, Jan. 28 VP) While the September was nominally un changed May and July wheat each lost 'Ac bu. on tho Portland grain exchange during tho ThurBday ses sion. Sales Included but 1000 bu. May. On tho merchants exchange cash wheat was unchanged. White oats lost 60c ton. , .