World Panorama
. Dorothy Thompioi,
Statesman colnmnjst, brings
to this newspaper's readers
keen Insight fnto world
events and their signifi
cance. . Weather
Fair today and Friday,
little change in temperature
or humidity; Max. Temp.
Wednesday 88, 31 in. 46, rir ,
er -3.2 feet, ' northwest
Wind.
FOUNDED 1651
EIGHTY-SEVENTH YEAR
Salem, Oregon, Thursday Morning:, August 19, 1937
Price 3c; Newsstands 5c
No. 124
ltiinree
adk Ouitan rami
w- ...... .
.Foe
Housing Issue
Is Cleared by
Lower Branch
Measure Differs Widely
. From Senate's, Must
Reach Agreement
House Clears Decks hut
Tax Loophole Bill Is
in Upper Tribunal
WASHINGTON, Aug. U.-(P)-
The house shoved the low-cost
housing hill through passage to
night with a 274 to 86 roll call
vote.
Approval of the measure to set
up a $526,000,000 program of
federal aid to state and municipal
low-cost housing projects cleared
away a major barrier to adjourn- f
nient of congress by Saturday.
The senate, however, must ap
prove house amendments before
the legislation goes to the White
House.
Critics Ehot one amendment
after another at the legislation.
Almost without exception the
house refused by lopsided votes to
accept them. - ;
Conference Fight
, I Xow Forecast ' '
But because house provisions
departed drastically, from those
that won senate approval a fort
night ago. a further struggle lies
ahead in a conference in which
senators and representatives will
attempt to reach a compromise.
Tonight's house action left it np
to the senate to wipe clean the
session's legislative slate by pass
ing a final appropriation bill and
legislation to close tax law loop
boles. ;
For more than nine tumultous
hours house members battled over
the housing measure.
In the midst of the give and
take wrangling, a7 to 59 stand
ing vote killed a proposal by Rep
resentative Hancotk (D-NC) to
impose a limit of $4,000 per
dwelling unit or $1,000 per room
on all housing projects.
Blast Be Held to
Average Housing
Similar restrictions were Incor
porated by the senate. The house,
however, accepted the decision of
its banking committee that cost
should be held down to the ave
rage for similar private construc
tion and in no event exceed $5,000
per unit.
Still resisting any major effort
to change the legislation, the
house junked an amendment by
Representative Fish (R-NY) that
would have lifted from 10 to 15
per cent the amount of federal
funds that might be turned over
to any one state.
It refused to alter the bousing
bill's provisions for local contri
butions toward the cost'of dwell
ings for families of small means.
The senate, meantime, began
consideration of the house - ap
proved bill to close loopholes in
the tax laws. It delayed a vote un
til tomorrow after Senator
Schwellenbach (D-Wash) protest
ed against the measure's being
rushed throurh "without even a
pretense of adequate considera
tion." . - - :
Valley Priest Is
Jailed bv Nazis
J' : J .
PORTLAND, Ore., Aug. 18-A?)-A
little American flag carried in
his pocket and a United States
passport failed to keep Rev. Jo
seph B. Saal, Catholic priest, out
of jail when he visited his native
Germany for the first time In 2$
Tears, he told interviewer! today.
The Rev. Saal, parish priest of
the Little Flower shrine at Wil
onville, said he spent a short time
time in Jail for making uncompli
mentary remarks about Dr. Josef
Goebbels. "minister for national
enlightenment and propaganda.
He a a 1 d he was acensed of
holding public meetings because
he stopped and spoke to persons
n the street and gave a farewell
party for his brothers and sisters.
"The people are living in a ter
rible fear,- he said. "They have
Ho freedom. If they go to Am
erica all the property they possess
Is confiscated. They get only
enough for a steamship ticket and
.v in money. The resentment
against timer is growing."
,WA Lists Funds
For new Schools
PORTLAND, An g. 1 g-(ffyWasb
Jngton advised C. a Hockley
Oregon PWA director, of the fol
lowing allotments for school build
togs:
; Near Sherwood, grant, f 3,7 72
estimated cost of structure $8,
$82: Beaverton 231.500. timt
ed cost $70,000; Gilbert Station
S32.727. estimated tout t90 ana-
Arcadia, $9,360, estimated, cost
919,000.
Roper Is Reluctant to
Invoke
In Sino-Japanese - JJ$j
Effect of Favoring one Nation Is Feared fghtr
I, With Prospect Both! Would Transfer
Relations, Be Difficult to RejrV
WASHINGTON, August" 18 (AP) Secretary Roper
served notice today the United States does not want "to sac
rifice any proper trade relationships" with Japan and China
through application of embargo provisions of the neutrality
law. ' '
Speaking slowly and earnestly in answer to reporters'
O
Insurgents Take
Arenas, Is Claim
Left Flank Is Crushed in
Surprise Sortie by
Leftists, Stated .
HENDAYE, Franco-S p a n I s h
Frontier, Aug. 18.-(iF)-The Insur
gent radio at Bilba announced to
night that Gen. 'Francisco Fran
co's troops have occupied the
town of Arenas, 28 miles from
Santander.
Arenas is 11 miles north of
Reinosa, important northern
Spanish town taken earlier in the
week by the Insurgents in their
campaign against government
held Santander.
The radio communique said 1,-
700 government militiamen sur
rendered.
In taking the town of Arenas.
the Insurgents captured their first
glassworks. The factory was in
good condition and furnaces will
be lighted Friday to start produc
tion of glass badly needed in a
dozen towns and cities where
bombs and shells have left scarce
ly a window intact.
A government OrQ m m n n ique
claimed that suprise sortie " of
crack Asturian and Santander
troops from the mountains west
of Reinosa had crumpled the left
flank of the Insurgents there.
The government troops ,were
said to have swept the insurgents
from their trenches along the Pa-
lencia highway in a Complete rout.
Insurgent artillery and aircraft
tried to defend the positions, the
government said, but the attack
ers took command of several hills.
The government victory was
within 40 miles of Santander, Its
last Biscayan seaport and strong
hold, toward which insurgent Gen
eralissimo Francisco has been
driving steadily.
Hiring of Oregon
Jobless Is Urged
The practice of certain Oregon
employers in hiring recent arriv
als from other states Instead of
persons dropped from the WPA
rolls, was deplored by Floyd- Bil-
yeu, state field agent for the
worka progress administration,
while in Salem Wednesday.
"I have been advised that many
Oregon employers are giving pref
erence to persons from, other
states," Bilyen said, "with the re
sult that former WPA workers
have been unable to obtain em
ployment. If this continues the re
lief rolls in Oregon will increase
correspondingly."
Bilyen said many persons drop
ped from the relief rolls are effi
cient and were badly in need or
employment.
"I would suggest that persons
desiring to employ help confer
with the works progress adminis
tration before taking on residents
of the other states," Bilyen con-
tinned.
FR Foes Distrust Democra cy
He Asserts: Quotes Macaulay
JlANTEO, Roanoke Island,
w . n inr 1 8-ffn-Presldent Roo
sevelt acensed his foes today of
"mouthing" praise of tne consti
tution while aecretly distrusting
democracy.
The president's denunciation of
what he called hie "tory" oppo
sition was his first since the
United States senate buried his
proposal to reorganize the su
preme court.
It was delivered before a per
spiring crowd of several thousand
aV ceremonies celebrating the
250th anniversary of the birth of
Virginia Dare, firs: child of Eng
lish parents born on this contin
ent. - ' ' ' '' ' . -.
Mr. Roosevelt turned to Lord
Macaulay, an English historian
who predicted In 1857 that demo
cracy would not succeed in this
country, for the major theme of
his address. .
After reading from Macaulay s
prediction, he declared :
"Almost, methinks. I am read
ing not from Macaulay but from
Neutrality Law
questions, the cabinet member as
serted invocation of the law might
have the effect of "favoring one
nation."
Saying that "we do not want
to do this," -Roper added there
was a question as to "how effec
tive application of the neutrality
would be in carrying out the pur
poses of our people to maintain
peace."
He predicted Japan and China
would transfer their purchases to
other nations should exports from
the United States be banned.
After China and Japan had
found new markets, Roper' con
tinued, they would be reluctant
to resume dealings here. ,
He asserted sales of cotton,
gasoline and oils accounted for
the bulk of the United States
$165,519,000 exports to Japan
during the first half of this year.
He added it would be "a real
question" to decide whether such
exports should be classified as
sinews of war and embargoed.
Huge Flying Boat
Will Join Search
Explorer Wilkins to Head
Party; Alaska Fliers
Delayed by Rains
FAIRBANKS, Alaska, Aug. 18
-P)-Chilling rain and low-hang
ing clouds tonight deepened the
six-day-old silence surrounding
the disappearance of pilot Sigls
mund Levaneffjsky and five Rus
sian companions on a projected
transpolar flight.
Impossible flying conditions
throughout the polar region held
a squadron of planes to the
ground here. Likewise a Russian
hydroplane awaited clearing wea
ther at Welland, northern Siberia.
Levaneffsky and his country
men dropped from sight Friday
after' messaging a Russian radio
station the ship was encountering
rough weather soon after cross
ing the pole.
r- The pnjp possible clue to the
position of the ship was furnished
by Eskimos on Barter Island,
south and east of Barrow, on the
144th Meridian.
They told Pilot Bob Randall,
one of the searchers, they heard
(Turn to Page 2, Col. 4)
Midair Kidnaping
Charged to Youth
P HOUSTON. Texas 'An rast 18-
(AV-A youth giving the name of
Jack Hamerly, 19, was held to
night on a kidnaping charge after
the mid-air abduction of an air-
itlana vtilnw
The youth was quoted by De
tectives Arch Spradley and Ira
Williams as admitting he drew a
pistol on Pilot Bob Hunt 2000
feet in the air and ordered him
to fly to Laredo.
The forced flight ended when
Hunt snatched his captor's pistol
as the latter bartered wlth'a fann
er near Rosenbnrg for gasoline
to continue the hop.
a resolution of the United States
chamber of commerce, the Liberty
League, the National Association
of Manufacturers or the editorials
written at the behest of some
well-known newspaper proprie
tors."
American Lord Macaulays" of
today, tne president declared, dis
trust maioritr rule became "an
enlightened majority will not tol
erate the abuses which a privll
eged minority would seek to
foist nron the neonle as a whole"
Reaffirming his faith in demo
cratic institutions, the chief exe
cutive asserted:
"T seek no chanre in the form
of American government. Major
ity rule must be preserved as the
safeguard of both liberty and civ
ilization."
On the sneakers rostrum were
some who fought his court reor
ganization bill, Including Senator
Clark (D-Mo).
Governor Hoey introduced the
president as the "colossal figure
(Turn to Page 2, CoL ,7)
Portugal and
Czechs Break
Off Relations
Failure to Permit Arms
Purchase, Attitude on
Spain Reasons Given ?
Minister Leaves ; Recent
Disturbances Viewed
as Possible Cause'
LISBON, Portugal, Aug. V9-(JPj-The
Portuguese government has
broken diplomatic relations with
Czechoslovakia because the iPraha
government refused to let Port
ugal buy arms and because of the
Czeehnslnvakian attitude toward
Spanish- non-intervention, an of
ficial communique said today.
The government statement dis
closed that the Portuguese min
ister to Czechoslovakia left Praha
for Vienna yesterday with the le
gation staff, leaving the task of
looking after Portuguese interests
in the middle European repuDiic
to the Italian minister.
LONDON, Au5. 18 -JP) The
Portuguese government, said &
dispatch from Lisbon today, has
severed diplomatic relations wun
Czechoslovakia.
The dispatch did not mention
cause or details of the reasons for
severance.
The cable from the Associated
Press correspondent in LJBbon
said only "Portuguese govern
ment severed diplomatic relations
Czechoslovakia," and it had been
delayed some hours by the Port
uguese censor.
Pending receipt of more def
inite news from Lisbon, foreign
observers speculated whether the
rupture might have been the out
come of two recent events a ser
ies of bomb explosions in Lisbon
last January and the recent at
tempt 4n . Premier Ollveria JSal
azar's life- ee therFovernment
claimed foreigners were Implicat
ed in both events.
The Exchange Telegraph
Agency (British) declared under
Lisbon date that tne Portuguese
government broke all relations
with Praha because of the Czech
oslovaklan government's alleged
failure to fulfill contracts to sup
ply arms to Portugal.
Costa Carnelro, Portuguese
minister to Praha, will be recall
ed at once, Exchange Telegraph
said.
Official quarters in Berlin Pro
fessed to have no information of
such a step by the two govern
ments, and there was general
puzzled surprise there.
Comment from Praha was not
at Snce available.
Moody Preparing
Bank Night Brief
The state's brief in the suit
brought by Carl Porter, manager
of the Elslnore theater, to restrain
local officers from interfering
with the operation of "bank
night," was being prepared Wed
nesday by Assistant Attorney
General Ralph Moody. He said
the brief would be filed later in
the week.
Arguments in the ease were
heard by Circuit Judge Lewelling
several months ago and the attor
neys were ordered to file briefs
before a final decision was banded
down.
Moody contends that "bank
night" is a lottery and in violation
of the Oregon gambling statutes,
Attorneys for Porter allegea
that "bank night" was a patented
entertainment feature and was op
erated in connection with the
moving Dicture industry.
The operation of "bans nigm
was discontinued here at the time
the original suit was filed.
Peters Will Hear
Recall Argument
Chief Justice Bean of the Ore
gon supreme court yesterday as
signed Circuit JudSe Peters of
Hillsboro to hear the mandamus
proceeding to compel County Clerk
Boyer to call a special election for
the recall of County Judge John
Slegmund.
The writ of mandamus was
made returnable In the circuit
court here Friday morning.
Boyer refused to eaU the elec
tion on the grounds that the good
names on the petitions were not
sufficient. A large number ? of
names were rejected for the rea
son that they could not be rouna
on the voters' registration lists.
Sponsors of the mandamus pro
ceeding alleged that the signers,
although not registered, were elig
ible because they possessed the
other qualifications of a voter.
The mandamus was filed by J.
S. Baker and others.
SCENES OF WARFARE IN NORTHERN CHINA
I
t
t
jm.
'"A
w-wv' war
1 yf
4 ri
Two of the first actual war scenes
a Chinese field piece la fired in a
binoculars. Below, train derailed
ese soldiers guarding the wreckage while equipment to repair the
photos.
Young Roosevelt
Denies Escapade
Must Have Been Someone
Else, He Asserts but
French Are Certain
PARIS, August lS-WV-John
Roosevelt, youngest son of Presi
dent Roosevelt, denied today that
he had squirted champagne in
the face of the mayor of Cannes
or slapped him with a bouquet of
flowers at a Cannes "battle of
flowers" on Sunday.
He said the Dlavful celebrant
must have been someone else.
However, George Goln, chair
man of the fete committee who
made the original identification
of young Roosevelt as the one
who encountered the mayor, said
in Cannes:
"It was young Roosevelt who
attacked the mayor and there is
no mistake.
"I was sure' of it before and
I verified it afterwards."
Mayor Pierre Nouveau himself.
who had a telephone conversa
tion today With American Am
bassador William C. Bullitt, as
serted:
"I was told that my attacker
was young Roosevelt although I
had never seen him before. 1 re
gret to say that I am certain now
it waS Mr. Roosevelt. I wish the
whole affair was ended."
Large Sums Paid,
Relief in County
A total of 221,881.35 was dis
tributed so far in the month of
August to 1062 people throughout
the county by the local reliet
agency, it was announced yester
day at the county relief office.
Under' the assistance to blind
division 2778 was issued to 34
people for an average of $22. S3.
Dependent children in the coun
ty numbered 85, receiving a total
of 21185 or an average of 113.94
apiece. The largest fund of the
three included is that alio ted In
the old age division in which 943
people received $19918.35 or an
average of 221.12 per person. :
The office is preparing for new
CCC enrollment scheduled for the
early part of next month. SPeciti
catlons for this sort of work have
changed slightly during recent
monthfc. It now includes young
men who need jobs besides those
actually on relief. If the applicant
has no dependents his - earnings
will be saved and paidr in a lump
sum at the time of his discharge.
Anyone interested is invited - to
get information at the office.
Late Sports
LOS ANGELES, Aug. 18-iT)-The
Seattle Indians defeated Los
Angeles tonight. 11 to 8, halting
the Angels' winning streak at six
games. -"
Seattle ..............11 17 0
Los Angeles ......... 8 12 2
Gregory, Pickrel and Splndel:
Thomas. Lieber, CamPbelL Over
man and Collins.
A,
. :
... (
" 'y-V-V
to arrive from China since hostilities with Japan broke out. Above,
Tientsin street, with officer in the rear watching; target through
and rails torn up by Chinese as they retreated southward, Japan
Blaze Is Battled
In Green Timber
SHELTON, Wash., August 18-(iP)-Simpson
Logging company
fire fighters were busily engaged
tonight trying to get control of
a blaze in their Grays Harbor
county property 30 miles west of
here.
George Drake, logging superin
tendent, reported the fire, be
lieved to have been Ignited from
a spark when pitch lines snarled
during operations this afternoon,
was rapidly eating its way into
green timber.
Two of the company's donkey
engines and much felled timber,
Drake said, had already been con
sumed by the flames.
Nazi Camps Under
C-Men's Scrutiny
WASHINGTON, Aug. li(jpy-G-men
began to scrutinize cer
tain German-American camps to
day to discover whether any are
being operated in violation of
federal law.
"It is really more of a check
np than a formal investigation,"
Attorney-General Cummlngs told
reporters, "But I have asked the
federal bureau of investigation
to . make a cursory examination
to ascertain - if there : are any
facts warranting further investi
gation." The government's attention
was brought to the camps when
representative Citron (D-Conn)
asked the state department to
ascertain whether "nasi military
training camps" are being spon
sored In this country by German
consulates.
Babe Risko Takes Count
MILWAUKEE, Aug. 18 - (TP) -
Babe Risko of Pittsburgh, former
middleweight champion, was
knocked out In the fifth round of
a scheduled 10-round bout here
last night by George Black of Mil
waukee.
Lebanon Strike Settled 1 but
Oukridge Mill has Dispute
EUGENE, August lS-itfVC. A.
Paddock, AFL lumber union or
ganizer, who was arrested at Leb
anon for "riotous conduct,"-was
released today - upon settlement
of the strike at the Wynn-Sewell
lumber mill. '
, Following .a conference this
afternoon involving union, com
pany and municipal representa
tives, the strikers agreed to re
turn to work.,
They had walked ont last week
when officials of the company
dismissed the union leader. Since
that time the crew, composed of
about 35 men, had remained
about the plant.
SetUement of the Lebanon
strike., however, was overshad
owed today when CIO organizers
charged "dictatorial" methods by
lumber and sawmill worker of
ficials last night at Oakrldge.
The local there voted to disre
gard the question of CIO affilia
tion. . . :
Percy M. Madden, Marshfleld,
:- r
c
i
damage is on the way ua
12,000 Want to
-
Fight for China
Heara Is Tired Soldier of
Fortune $ Is Deluged
With Mail Offers
, LOS ANGELES, August 18-P)
A tired soldier of fortune, Gen.
Russell Hearn, laid a handful of
letters on a table, called atten
tion to their varied postmarks and
said:
"One day's mall. Guys from
everywhere want to Join me."
Since Hearn let it be known a
few weeks ago that he is assem
bling not recruiting, positively
not other soldiers of fortune to
fight for China, he said he had
been deluged with mall.
"I haven't been able to sleep,"
he complained. "Answering let
ters all the time.
"About 12,000 people have
written me already, I guess,"
Hearn said today. "Not only pi
lots, but cavalrymen and infan
trymen and engineers and even
some women who want to be
nurses. They all want to know
when we leave and how we get
there.
"I can't tell them anything
definite. There's a law which
makes it illegal to recruit men In
T- (Turn to Page 2, Col. 1)
Mexican Of ficers
Coming Saturday
PORTLAND, Aug. 18 -(TP)-Warden
James Lewis will take SO
members of the Mexico police de
partment on a tour of the Ore
gon penitentiary at Salem Friday.
Lieut Manuel Cardoza, repre
senting General Martinez, Mexico's
chief of police, will call upon
Governor Charles Martin.
The officers are members of a
group of 99 here for the "Mex
ican Fiesta" Saturday.
member of the . international
woodworkers' , executive board,
declared that AFL officials pres
ent at the meeting had blocked
consideration of - the issue, and
announced that the question
would be brought np again at
the next meeting. : ,
J. J. Babe, attorney for the
national labor relations board,
opened an investigation of com
plaints against the industrial em
ployes', union, former Four-L or
ganization. . TOLEDO, August 18-ff)-RaIl
lumber shipments moved forward
today under guard by Southern
Pacific company detecUves as
three . national .. labor relations
board representatives arrived . to
Investigate charges against the
Industrial employes union.
- The charges were, brought by
the AFL officers who ordered
pickets thrown around the C. D.
Johnson Lumber corporation Fri-
. Turn to Page 2, Col. 6)
Japanese Land
Positions Are;
Under Barrage
100,000 Regulars, Many
Others Due to Oppose
25,000 Nipponese
Events May Shift Heavy
Artillery Battling
From Shanghai
RTTAVfiHAT. Aug. 10-(Thi
day) - (jP) Japanese warplanes
rained bombs on the American
Southern Baptist Mission com
pound today as a heavily rein
forced Japanese army took the
offensive to cut off Shanghai
from Woosung and the Yangtse
river.
It was not definitely known
whether the 20 Americans liv
ing in the compound had been
evacuated. The Japanese bombs
were apparently intended for .
the electric power house in the
Chapel area on the northwest
ern border of the international
settlement.
U. S. Consul Gen. Clarence
E. . Gauss decisively told Jap
anese naval authorities traffic
between Shanghai and Woe
sung the gateway to the sea -and
safety for thousand ef
Americans must be absolutely
unrestricted.
As the Japanese started their
offensive Vice Adm. Kij-vebl
Hasegawav commander-in-chief
of the Japanese fleet operaUng
against Shanghai, notified tne
American authorities the Jap
anese navy wished to restrict
traffic on the Whangpoo river
over which almost lOOO Afr
icans have been evacuated.
SHANGHAI, Aug. -(jrVa11-ese
artillery batteries began shell
ing Japanese land positions and
warship in the WhangPoo river at
dawn todav with a heavy barrage
fire believed to be preparatory to.
a major offensive. . -
The international settlement
and the French concession were
rniVoil hv the tremendous force
of the explosions, north of Soo
chow creek and to the east along
the Whangpoo waterfront. The
impending battle was expected to
be the severest cast Asia nas seen
since the close of the Russo-Jap
anese war quarter, of a century
ago.
The Chinese bombardment con
tinued off and on throughout last
night and as the brilliant Shang
hai moonlight faded before the
dawn burst into full fury.
Settlement Faces
Shortage of Food
The International settlement,
French concession and Chinese
(Turn to Page 2, Col. 1)
Live Steam Blast
Kills 7 Workmen
PHILADELPHIA, August 18-(jp)-A
blast of live steam la the
fire room of the IT. S. destroyer
Cassln killed seven workmen to
day and scalded nine others, in
cluding seven sailors.
The dead were Joseph Va&sa- .
lusso, Michael Scavo, Louis Sher- .
by, William Mehl and W. T. Me
Callum, of Philadelphia; George .
Dreisbach, Oaklyn, N, J., and
Daniel Vantier, Camden, N. J.
The Cassln had been in dry
dock for several days for repairs.
Steam pressure on the vessel had V
been raised to test the valves. -
One of the main pipes in the '
fire room burst, tilling the room
with live steam. . . , . , .
Graves May Name
Wife for Senator
ATLANTA, Aug. H-Mra.
Bob Graves, the likely appointee
for the United States senate seat
of Hugo I Black, sped to Wash
ington by airplane late today
with her husband, the governor
of Alabama. .
Both Mrs. Graves and the gover
nor who is empowered te ap
point a successor to the supreme
court justice-designate were in
high spirits, ' but noncommittal.
- The governor's wife, Dixie to
her friends, laughed aside . au
thoritative reports she will suc
ceed. Black. Graves likewise re
fused to affirm the reports.
B
A L LAD E
of TO DA V
By R. C.
It seems the well-meaning
neutrality law, designed to keep
this nation free from all harm,
would operate much like a sock
on the jaw to a nation invaded,
desiring ' to arm; so though
China's beset by the hosts of
Japan, officialdom stalls oa in
voking that plan.