Statesman-of-Air ' Statesman depart me'nt heads broadcast over KSII each .Monday at 7:13 p. m., . Tuesday 8:15," Thursday , :15, Friday 10:45 a. m. Weather . Partly cloud jr today, fair Wednesday, slightly cooler; aiax. Temp. V Monday ,78, SI in. 51, river 1 foot, north northwest wind. EIGHTY -SEVENTH YEAR Salem, Oregon, Tuesday Morning, July 13, 1937 Price 3c; Newsstands 5c No. 92 Madrid t v ., ........ ... j ... . ., , , TO" -r, .Hanc Spain if a i .'I ' ,1 1 i ii'i t. I ! - r ussian. Plane County Assets Make Building Plan Possible $441,267.26 in Excess of Liabilities Is Shown i on County's Books '. Construction Even With I no Federal Aid Seen as one ect A summation, of assets and lia bilities 1 released - yesterday dis closed " that Marion- county may find itself in a position to build a nftw courthouse regardless of whether- or- not the public works administration allocates federal money, to the- project. . ; Prepared by Deputy Clerk Con- nell Ward ' at' the request of the count?; court." the study shows the County to have an excess of assets over liabilities amounting to $441, 267i26. ' "!.; T . If; the PWA should allot the 1266,404 grant which has been ap plied for in connection with the $59 2.01 0 construction program, the county court apparently would be able to raise ; the sponsor's 5325,606 share in the project by floating a loan against the excess assets . or by obtaining "a smaller loan and utilizing a cash surplus that exists.' Possible Even if WPA Aid Denied It . the county, on the other hand, found it necessary to finance the ! project unaided, the court could borrow as heavily as possi ble against the excess assets and levy a relatively small tax to make Up the balance of the $592,010. In either instance, moderately light levies could be made over a several-year "period, under the state courthouse construction act, to wipe out the loan. The possibility of the county's putting up excess assets as collat eral for a loan was suggested in directly in the opinion recently given by 'Attorney General I. H. VanWinkle as to the legality of the state act and as to applica tions of the constitutional debt limitation. The opinion stated that the county- should determine where the $5000 constitutional debt limitbegan by the account ing; method of checking liabilities against assets currently available fori their payment, The clerk's financial report will be discussed at tonight's meeting of the county court's general build ing committee. Either C. C. Hock ley, state PWA administrator, or his assistant, Folger Johnson, will be present to explain the PWA situation as far as possible, ac cording to County. Commissioner Leroy Hewlett. Linn Using Similar Setup la It Plans The Xinn county court, which filed Its PWA application only ten (Turn to Page 2, Col. 5.) Flood Control on Santiam Scanned United States army engineers hope to be able to make a Hood control survey of the North San tiam river in the near f utuns. County Engineer N.'C. Hubba and - County Agent t Harry L. Riches were advised yesterday when they went to the engineers' district of fice in Portland. while -temporary' means of minimizing flood damage to lands along this stream are possible, the ultimate eolation will be construction of , a high dam below Detroit, Hubbs report ed on his return. . ; 5 The two officials also were In-, formed" an allotment of fundafor flood control works on the main Santiam from Jefferson to . the Willamette river" had been, nia4e and the work erobably would be started Boom , V" - V traffic Toll for Portland now 45 p ORT I A N D.: July 12-ip-portland's traffic toll reached A I Fr "he rear wfc; ,Mu Kjg. neth MClveau, . " TnJured while walking acrowa 1UJU: .. . i..-.i.tinn vester residential wvv" City Patrolman Hintx said the Y- r... .mcv bv car JriveT ty FranTis C. Cbulombe, lT?f Cima,. The driver was arrested. Softball Chiefs to Meet A meeting or manage.- .m Softball association baa scheduled for tomgu. Radio Network Guides Airmen; Snowstorm Is Dodged, Pola r Regions 1000 Miles Past "Farthest North" in Strait of Melville Latest Position Reported;' All . Well; Signal Corps Providing Aid SEATTLE, July. 13 (Tuesday) (AP) A red -winged Russian monoplane from Moscow thundered down "from the top of the world today, guided toward San Francisco by a giant radio network. The plane passed the vicinity of the North Pole yester day afternoon and began its southward flight along the 120th - : O meridian, roughly on the course of Architects Wire . Concerning Offer Definite Reply on Making Library Plans Delayed; Optioning Started A message was received by the state capitol commission Monday from Trowbridge & Livingston and Francis Keally, New York, architects, acknowledging receipt of offer from the commission to act as architects on new capitol buildings. " The message added that reply would be made within a few days. It was believed here that some of the principals were perhaps oat of the city, accounting for the de lay in the reply. This is the firm which won the award for: the new capitol. ! The work of obtaining options on- at least two blocks of -residence property north of the cap ital site was started Monday by T. H. Banfield, a member of the capitol reconstruction j commis sion. The property,- when purchased by the state, will be used for con struction of a library h building and probably a state office struc ture. The last legislature appropri ated $850,000 of which $300,000 was for the purchase of addition al land and $500,00 for building construction. An additional $45,000 grant re cently was obtained from the fed eral government.' Banfield indicated that the op tions would be obtained within a month. , Tiny Cooper Wins Northwest Title Decisions Chuck Nickason of Vancouver in Fight on Woodburn Card WOODBURN. July , 12. Tiny Cooper, hailed as Oregon's heavy weight champion, extended his claims to the . northwest title as he decision ed Chuck Nickason': in the main event tonight at the American Legion's big open air card held in the . ball ! park at Woodburn, . J? Nickason, : billed as Canada's best, and calling Vancouver, B.C.. home, could not . land . one on Cooper tonight as he did in a previous meeting .at Vancouver when he kayoed him In the sixth Cooper now gains possession of a handsome belt signifying the title. . . ;.. . . . : (Turn to Page 2, Col. 4.) Lewis Launches Pros ram to Organise Public Employes WASHINGTON, July 12.-6!p)- John L. Lewis began a drive to day to bring 2,000,000 state, coun ty and city employes Into a new anion affiliated with his Commit tee for IndUsrial Organlzaion. " Employes of state, county: and municipal divisions of our govern ment have long felt the need of an organization to- promote- their welfare and- provide means Tor the adjustment of grievances aris ing - through - their employment, Lewis said in a statement. CIO leaders added the nucleus of the new onion will be a (roup Federation of State, County and Municipal employes, an American Federation of Labor union char tered within the last few years., A. D. Lewis, a brother of John L. and director of the CIO's gov ernment employes . section, said this group is mostly In New York and Pennsylvania I , ,.. Abram Flaxer of New !York City, who has been vice-president of the AFL union, was named ex ecutive vice-president of th new . Mt&'es three daring Russians who essayed a similar flight a month ago. At 11:58 p. m. . t P. S. T, ) , last night, Alaska Communications re ported it had received a message indicating they were about' 1000 miles on the U. S. side of the pole. The message said: "My position is Strait of Mel ville, everything all right. Signed Danilin." Smooth flying weather marked all the flight from Moscow to near the pole. There Navigator Danilin reported cyclonic conditions, and the pilot veered the graceful mono plane to the west. Five hours later Danilin report ed "All is well." The ship had flown about 100 miles, apparently beyond the storm area. As soon as the plane crossed (Turn to Page 2, Col. 8.) Bank at John Day Robbed by Thugs Cashier Slugged, Another Man Wounded; Most of Money Is Recovered JOHN DAY, Ore., July 12-()-4 A gang og armed men robbed! the Grant county bank of an un determined a m o u-Ji t tonight,! slugged Oscar Hoverson, assist ant cashier, wrecked their car! and wounded another man while making a getaway. j The robbery took place shortly after 9 p. m., while most of the residents of this little town were watching a burning building be lieved to have been set afire by the robbers to distract attention! A report which officers were unable to confirm definitely saii the robbers visited Hoverson's home and forced him to go with them to the bank and open the U. The safe, closed with a tire lock, was unopened. : .Hoverson was found lying on the sidewalk in front' of the bank, badly beaten about the head. , The robbers car overturned a short distance out of town near the home of E. Blaylock who, not knowing of the robbery, was shot in the foot as he approached to give aid. The men then were reported to have commandeered the car of Mr. and -Mrs. Car Tuthers of John Day and made their escape. An official of the bank said most of the silver taken from the bank was found in the wrecked car, together with four gnus and a number of license plates of various states. The car was described . as , a . Plymouth coupe carrying' Washington : li cense plates. ' ' ; j Sgt. F.-A. McMahon ; of, the state police said Hoverson ' was unable to talk and the story of the robbery bad not been defi nitely reconstructed. He said ' (Turn to Page 2, Col. 8.) anion. He Is to head it until a permanent organization fs set up. The drive is Lewis' second In the" governmental field. He re cently announced' a campaign to organize the "United Federal Workers of America. - ' ' Flaxer said the new union will take over at least 13.000 of the 15,000 AFL members in clfj, state, and county employ. Inde pendent anions, in- St. Louis, Chi cago," Milwaukee 'and along the Pacific coast already have applied for membership,' he said "Elected officers, executives with power to hire and discharge, fire men, police, school teachers and members of the military forces will not be eligible to Join. John L. Lewis also announced that "the use of strikes or picket ing by the onion shall be deemed a violation of the policy of . this organization. ! 'Lewis' efforts to organize fed eral workers were denounced to day by Representative Hoffman (Turn to Page 2, Col. 2.) Shells Burst ; Over Peiping; j Battle Rages Heavy Casualties Occur Upon Both Sides When Hostility Renewed Reinforcements Sent in by Both Sides; China 1 Taking Firm Stand PEIPING, July 13-(Tuesday)-(jP)-Shells began bursting over the walls of Peiping today as Chi nese troops of the 29th route army clashed with Japanese rein forcements just south of the city. Heavy casualties were reported on both sides. The fighting began shortly be fore noon. In the new area of the Peiping . battle zone, outside the Yung-ting-men sector of the city at the south gate. Within a few moments It had spread a half mile southward to the railway bridge on the road to the Nanyuan airdrome and the Chinese bar racks there. Chinese troops from the bar racks were immediately drawn into the engagement, the latest outbreak of h o s 1 1 1 i t les which started last Wednesday midnight when Japanese troops on secret maneuvers joined battle with the Chinese guard over Marco Polo bridge across the Yunting river. 10 miles west of Peiping. Shells started exploding over the city waUs a few minutes after noon. r The Japanese troops were re inforcements -for the western bat tle "tone-They. had been refused admittance to the city at - the northern gate last .night and de ployed to the south against the airdrome and barracks at Nan yuan. PEIPING, July 13-(Tuesday)-(JPy-Big guns roared for half an hour today in continuance of Japanese-Chines hostilities west of Peiping. All was quiet again shortly after 7:30 a. m. (3:30 p. m. PST), but both sides continued moving reinforcements into the zone of conflict. The cannonad ing followed a resumption of warfare last night after a one day truce. In Nanking the foreign office told the Japanese embassy there could be no valid settlement of the troubles without the sanc tion of the central government. It was understood the statement was issued as a result of reports from Japanese sources that au thorities of the Hopei-Chahar (Turn to Page 2, Col. 2.) No Need of State Car Says Hazlett An unprecedented request startled the state board of con trol at its meeting M6nday. James Hazlett, state corpora tion commissioner, informed the board that he has no use for his state-owned automobile and asked that It be transferred to some other department. "That official deserves" a med al," State Treasurer Holman de clared. Governor Charles H. Martin agreed. It was the first time In the recollection ' of present board members that a state official vol untarily asked to return an auto mobile assigned to his depart ment. Ask Early Action Anent Bonneville -WASHINGTON, . July Chalrman Mansfield. (D Tex.) of the house rivers and harbors com mittee said today the house rules committee would consider his ap plication Wednesday for arly con sideration ot the Bonneville dam administrative legislation. A measure is. now before the house which would place an in terior . department administrator over power to be generated at the giant Columbia - river plant' and give the war-department control of the physical properties of the project. A somewhat similar meas ure is before the senate commerce committee. - . Fractured Hip Suffered Mrs. Victoria Brescher, 80, suf fered a fractured hip in a fall at her home at 292 North Summer street last night. Mrs. Brescher was removed to Salem general hos pital, where she -was-said to be resting easily.. ' Bailey Claims Bill Violates Constitution Control Supreme Court, Declared Purpose of Administration Gag Rule and Filibuster Charges Are Traded by Rival Groups WASHINGTON, July 12 r-UPf-Senator Bailey (D-NC) climaxed a turbulent day ot senate debate on the court reorganization bill today with an assertion the mea sure is clearly unconstitutional. Before a crowded senate, taut with the strife the measure has provoked, he shouted that the purpose of the bill is 'to control the. decisions, of the supremo court, an objective for which there is no sanction In the constitution. The North Carolinian spoke af ter1 Senator O'Mahoney (D-Wyb),' former democratic national com mitteeman, charged administra tion leaders with ignorance of the bill they are espousing. He also accused them of Imposing 'gag rule" on the senate and de nounced the measure as central izing control over the administra tion ot justice. Both speakers delivered their adresses between intermittent outbreaks of the parliamentary sharpshooting that has dominat ed the dfscussion ever since Sen ator Robinson (P-Ark), the ma jority leader, Invoked rules used only to combat actual or threat ened filibusters. Responsibility for Tie-Up Is Denied Both proponents of the bill and the opposition denied responsibil ity for the fact that since these rules were applied, pther business, notably, a war department appro priation bill and1 the administra tion farm bill, has piled up await ing settlement of the court squab ble. ' Proponents pointed to the fact (Turn to Page 2, Col. 1.) Culinary Alliance Contract Refused Curtailment of Jobs for Students Is Principal Objection Offered A revised culinary alliance con tract proposal was rejected last night by the Salem Restaurant as sociation, according to Frances Randall, member of the associa tion executive committee. Chief reasons given for the re jection were that the proposed union agreement would greatly curtail the number of Willamette university students who could be employed by the restaurants and that an apprenticeship system was not provided for. The latest union agreement and the employers last proposal are not far apart, Mrs. Randall said, and negotiations will be continued by the association executive com mittee. 1 Submitted by C. A. Chambers, alliance business agent, the con tract turned down last nUht nro vided for an j eight-hour day, time and one-half for overtime and a 10 per rent increase In wages. Mrs.. Randall said the hours were acceptable: to the association but the employers wanted to retain the wage scale which was adopted by the union last year and on which the. requested 10 per cent increase Is based. Whereas many downtown res taurants ordinarily employ from three to five or more Willamette university men and women stu dents during i the school year, the anion proposal would limit the operators to one. student for the first five regular employes and one additional student for each additional 10 union workers.- -- Bostwick Admits Robbery, Claimed ALBANY, iJuly 1 t-(JP)-SbeTltt Herbert Shelton and State patrol man Larios said Oscar F. Bost wick,; arrested last night, con fessed to the robbery of the L. X. Stamk-augh. service station here 18 months ago. - -i--.- ; W v - - Search was instituted for James Landgraf j; whom the officers said was Implicated by Bostwick, who waa bound over to the grand jury under $1,000 bond. Hops Under AAA, Plea : (WASHINGTON, Julr 12.-(ff)-Rep. Waiter M. Pierce of La Grande. Ore'; proposed today to make the agricultural adjustment act. apply to hops. f ; Goli Wizard Mystery Cleared as Montague Held on Holdup Charge fc" liiiiiisii mmmM:ir I --- ' -' - . --'""'- -x !' . - 4 " " ' ' "v- 1 ' ' ' 4 " ' 1 I The question as to why John Montague, 82, declared by experts to be the greatest golfer to America, steadfastly refused to enter tourna ments. Is answered. He was arrested late last week on charges of assisting in a holdup in New York in 1930, msd admitted that he was La Verne Moore, the man wanted. International Illustrated News photo. . 0 ; . , Montague Fights Removal to East L. A. Sheriff Asks Him to Appear in "Lineup" for Probe of Activities LOS ANGELES, June 12.-ifP)-The "mystery man" of the fair ways stacked his golf clubs away today and went into seclusion pending a preliminary hearing July 26 on a New York fugitive complaint. Counsel for John Mantague said his client is taking a rest. ' "He is playing no golf these days," said Jerry Giesler. "There is no change in our plans. Mon tague will fight any attempt to extradite him to New York." Montague is charged with par ticipating in a Jay, N. Y., road house j holdup in 1930. His' arrest last week shocked the film colony and many actors and sportsmen rallied to his sup port today with promises of help ing him as much as possible. The theme of their statements was that in the seven years Mon (Turn to Page 2, Col. 4.) Helen Moody May Seek Separation RENO, Nev., July 12-(jrP)-Mr8. Helen Wills Moody, former, wom en's tennis champion of the world, established herself today at a Ne vada vacation retreat and con ferred here with an attorney who said she might "later on" seek, a divorce from Frederick S. Moody, Jr. When the . former Wimbledon and national tennis champion ar rived at Glenbrook, Lake Tahoe resort on the Nevada shore, she said she planned merely to "rest." Later, she drove here and con ferred with Atty. Robert M. Price, who announced the court star would consider divorce action against Moody, her,, non-tennis-playing husband, who is a San Francisco oil executive. blax Festival Again Slated for Mid-August at Mt. Angel MT. ANGEL, July 12 Deci sion to sponsor, a - flax - festival here Fgday and Saturday Au gust .13 and it, was reached this noon at a meeting. of the Mt An gel Businessmen's club. ; ' - Fletcher ; Lynn ? of the Van couver linen mill addressed the club, urging - ; the festival and pledging the cooperation" of his company. . He. promised entry ot a . float In the parade which will be a feature at 2 p. m August 14. - ... Shotwell Callvert, head of the Portland WPA players, offered cooperation in form of a suit able play during the festival. . v Governor ; Martin, who : has been active in promotion of the flax Industry in Oregon, will be Invited to crown the queen, this to.be one of the features tho opening day. Methods of se lecting the queen and princesses for the festival were not foil; determined at the meeting today. Other plans drawn up - today call 'for a queen's ball following her coronation, this to be in a -ii Silverton Meets Fruit Team Next St. Helens With big Rally Stops Selhvood; Fence Finally Surmounted Games Tonight Silverton vb. Pacific Fruit. Consolidated vs. St. Helens. SILVERTON, July 12 Corne lius and Sellwood were the teams which dropped out of the Oregon semi-pro baseball tournament here tonight In the more rapid elim ination which has become the rule since all teams, with the exception of Reliable Shoe, have already suffered one defeat. . Tomorrow night the host Silver Falls team, once humbled but still defiant, will battle Pacific Fruit, the outfit Which toppled Cornelius tonight by a score of 12 to-4. St. Helens, which came from behind with nine runs in. the sev enth to defeat Sellwood, 11 to 7, also will see. action again Tuesday night, against Consolidated Freight. The St. Helens rally tonight which fell one short -of the one inning splurge record' whereby Re liable Shoe victimised . Silverton Sunday night, was a more thrill-' ing affair since It came in the final inning. It was well that St. Helens "made hay" while it could, for the undaunted Sellwood team came through with four runs in its half. Up to the last inning Sell wood had led 3 to 2. Sellwood 's final' effort also saw new history made;, the first home run over the fence of Silverton's new- ball park. Abbott, first oase (Turn, to Page 2, Col. 2.) Young Patient Escapes At State Hospital Here William E. Stewart, 1 ft-, escaped from the Oregon state hospital late . Monday afternoon, state po lice were informed. No word of his return to the hospital had been received last night. Stewart was committed to the institution from Grants Pass. pavilion i constructed at the ball park,. where the festival wilt cen ter except for inspection of the flax plant, -slated for Saturday morning - between 10 and 12 o'clock. An ' authority on flax will be invited to explain the Industry to the crowds at the plant,-" and guides; will be : arranged.- r ' '-'At 2 o'clock Saturday after noon - the parade with flax the dominate theme will be staged. Commercial . and individual floats will . be -.entered,- with prizes awarded. Tentatively planned it a' ball game- following the pa rade between the Ut. Angel All Stars and an outside team. ' , Finale Saturday night win be the 1 WPA players drama and fireworks by the Shell Oil . com pany. . . - yx-v.- General . chairman for - the festival is W. Douglas . Heater, with members of the committee r Lee Withers, Leonard Fisher, E. G. Unger, -T. D. Endres. Fred J. Schwab and E. B. Stolle. . in n Til A inesAre Shot Down by Loyalist Aces Heavy . Casualties Occur Among Insurgents in Conflict on Land - 15 na IACUC1S VUHICIJH J-iIItlllJ O -"v's Progress Is Made at Many Lives' Cost 1 MADRID. July 1 2 (JP) - Th Spanish government, pushing its offensive west of Madrid by land and air, announced tonight its fliers had shot down 13 insurgent planes while its troops inflicted heavy casualties on enemy ground forces. i " ' Observers ' returning - f rem " the front reported how the bare as tillian plain had been turned into a vast battleground " With whole villages blotted out by terrific ar tillery and air bombardments. ' In Villanneva del Pardillor, II miles west of the capital, and Qui jorna . scarcely a house was left standing.- j. ' Severe fighting raged from be fore dawn today until after night fall near Villannueva del Pars' i Ho, a communique said, with the gov ernment forces "frustrating all enemy attempts and causing heavy casualties." Nine insurgent craft. Including one Heinkel (German type) and eight Fiats (Italian type), it said, were felled in a lengthy battle in the skies over insurgent territory near El Escorial, 26 miles north west of Madrid. Loyalist Losses Low, Madrid Claims - - Three others, the commnniqae added, were shot down In the Ma drid area in which loyalist! (gov ernment) fleets bombed more than a score of enemy positions, treops concentrations, trucks and , air fields; another, j-riddled., by ma- . chinegun fire by loyalist planes, made a reconnaissance flight over the Balearios archipelago and fell in the sea. ! . 'Our losses. Including two air planes which did not return to their base, were limited to three planes. Against the government air raids, insurgent air forces, retal iated with attacks upon the Bru-nete-Cuijorna sector outposts f the government's new drive in tended to raise the siege of Ma- . drld. The offensive, now in-its seventh day, has pushed! Gen. Francisco Franco's insurgent line back northwest of Madrid but left the Besiegers still at the capital's southern gates. Insurgent headquarters eon tended the government had made progress at the expense of 10,000 dead and wounded, while govern ment sources estimated their op ponents lost 4,000 men in the bat tle for Villa-Nueva Del Pardillo.. A two-hour naval engagement between three government wor ships and the insurgent cruiser Baleares, 20 miles from Valencia, ended apparently with no damage to either side. . SALAMANCA, Spain, Juiy 12?-UP)-A bitter struggle that may be the climax ot the civil war. In surgent officers declared tonight, is being waged on the Madrid front. ' 'VI . ' : , - They said It has forced 'i into temporary, perhaps . permanent discard, an insurgent . plan to sweep Spain's northwest l e d g through Santander. and then mass forces ; for an offensive against main government strongholds, Madrid, Barcelona and Valencia.. . The government, forces,! Insur gent commanders said, evidently have chosen to fight It oat now where they are strongest. -the Mfcdrid front in central Spain, and Gen. Francisco I Franco's j troop are accepting the challenge." Spanish War Vels Meet at Medford MEDFORD.'Jnly 12.-(iip)-Neas ly - 400 delegates, . representing, every district of the state, opened the annual state encampment of the united Spanish war veterans and auxiliary here today.' 1 . A parade this morning was fol lowed by official greetings t joint meeting, after. which bothi bodies convened separately for business' sessions. ' , ' , - i ' Astoria was mentioned as a can-' didate for . the 1938 conventioa city. ' B ALL AD o TOD A By R. a y As long as Mussolini and the other fascist bosses kept send ing troops and guns to Spain to "sharpen rebel claws. It dWn't make ra u e h - difference . bow Kreat were Franco's losses. Sat now'Jhat help has slackened it looks bad for Franco's cause. o'clock at iu"