I State Fair Looms Much useful and inter ceting Information abont the state fair will appear fn The Sunday Statesman id in 'issue during fair week. Weather Increasing cloudiness to day, unsettled with show ers Saturday, cooler; Max. Temp. Thursday 87, Min. 48, river -2.9 feet, north wind. 1ML w Vv EIGHTY-SEVENTH YEAR Salem, Oregon, Friday Morning, September 3, 1937 Price 3c; Newsstands 5c No. 137; aim Imperil. iiee eJI i I'-. FOUNDED 5 1651' :L - 'M lis Ag e Ciy Budget 1$ No Salaried Restod Changes When Citizens Meet Still Possible Income Estimate Lifted to Eliminate Paper Deficits Faced Faction Seeking to Put in Doubtful Sum and Boost Pay, Loses CITY BUDGE?! ADOPTED BY CITIZEN COMMITTEE Total expenditure 401,60ii.05 Current expenses $264,313.60 Less non-tax receipts . 35,000.00 Current expense tax : $229,5 1 5.60 Fire, tax ..10,00.00 Street tax 10,953.00 . Bond" expense ......l 15:11.45 Totat-special fax fi37.08ti.45 Total ! 1938 city tax . . ; S366.eO2.05 Tax Increase over 1937...- ..... $12,630.62 Close voting and a caustic word war ended in adoption of a Salem city budget for 1938 top ping the $400,000 mark last night but the citizen-alderman committee refused to grant de mands tor salary restorations. :- An opening attempt to balance the budget, wnicn was- isa.zi in the red, by Alderman David O'Hara was interrupted immed iately by Alderman Edwin C. Goodenough, who led the unsuc cessful drive to restore city em ployes salaries to .the pre-de-pression level. - Gbddenough waa defeated on a voice vote c ; a proposal io In sert in the estimated non-tax receipts Item, which offsets the current expense tax, $10,000 rep- resentragj1 Interest and penalties on deliaguent taxes -whleh he contended were due the city from the county.- He said $9,308 was the exact amount required to add 5 per cent to all city workers pay. He suggested -as additjonal revenue allowable in crease? totaling $4,000 in esti mated treasurer's .and recorder's receipts.. Balance Achieved In Three Motions - Three quickly adopted motions that balanced the budget fol lowed, as proposed by 0Hara and Citizen Committeeman R. D. Slater." To achieve the bal ance, ,the committee increased recorder's estimated receipts to . . n m A A A f . 1 , AAA dog license' fees to $1,500 and gasoline tax refunds to $2,000, for a total gain of $4,000, and then deducted from the expense budget $1250 which Committee man T. C. Peerenboom and Re corder: A. Warren , Jones said would be gfWd through reduced Industrial Imi i d e n t insurance I&lrs. ins rcauifc won uuut" with a $64.73 cash balance. - The salary Issue blazed again when Aldermen Fred A. Williams and E. B. Perrlne sought unsuc cessfully to adjourn the meeting and O'Hara followed with a, hot ly debated motion to instruct the recorder , to publish the .budget and call - the annual taxpayers' meeting for October 18. "I'm objecting to adjourning this meeting till the question of salaries Is given further consid eration," Goodenough shouted. "These wages can be restored. The Question Is do you gentlemen want to do it!" Goodenough pleaded - for at (Turn to Page 16, CoL 1.)" Girl Paralysis Despite Race DENVER, Sept 2-(ff)-Maybelle .Outcalt 15, died today despite a race by - transport plane and sireamunea tram .wnicn orousni two artificial lungs from Toronto and Chicago to aid a determined fight against infantile paralysis. Her death, swift and sadden but not unexpected, came in an "iron lung" less than 11 houis after the f i r s t artificial lung, rushed by plane 1900 miles from Toronto, reached Steele memorial hospital. . Maybelle was one of two girl Infantile - paralysis patients in Steele hospital depending on the mountain area's only iron lung until the two respirators arrived in Denver this mornings . Shirley Krause, 3 0-months-old, Suffering the same attack of the paralysis upon her chest muscles as Maybelle, rallied however; while the older patient sank. ; Only attending nurses and Dr. man Chicago Theatres Bar Children;Due To Dread Disease CHICAGO, Sept. &p)-The-aters barred' children; under 46 today in a new move to stem the spread of Infantile paralysis. , Playgrounds and i wading pools also were closed as the crippling disease attained the highest incidence of the cur rent , outbreak In the nation's second city. i j Dr. Herman X. Bundesen, president of the board of health, announced I 12 new cases hadg been reported to day the greatest number for one day since the onset of the malady. Two babies died. Supt. George T. -Donoghue of they Chicago park 1 district ordered suspension of the op eration of 83 playgrounds, 55 : wading pools and three' toy lending libraries, f Similar precautions! were adopted in Omaha. City Health comm. Floyd Kinyoun can celed two parades one planned to honor the national amateur golf champion, John ny Goodman. Six new cases there raised the total to 84 since May I. Deaths numbered 17. Waukesha, Wis., officials decreed children under nine must avoid school and public gatherings until mMSeptem ber. A woman succumbed to the disease there n I Refugees Arrive, Tell War Thrills Educator Has Saber Mark on Helmet; Shot Down Attacker, He Says SAN FRANCISCO, Sept. 2-(flV The Dollar liner President Taff, first vessel bearing refugees from fwartorn Shanghai, drew into San Francisco harbor today with a jammed passenger list of 457. About 70 were actual ; refugees, who fled Shanghai August 16, two days after the bombing of the Cathay and Palace hotels. Most vivid was the story of Dr. I. Levltas, director of Education at Kansas City, ;Mo. f His tropic helmet bore the mark of a Japan ese sabrethrust, received while fighting to protect the British concession at Tientsin The mild-mannered doctor, of (Turn to page 9, col. 5) Shipping Periled By Union1 Quarrel SAN FRANCISCO, SePt 2-UP) -The old spectre of pott paraly sis loitered today behind the stiffening lines! of a CIO-AFL controversy here which; suddenly was dumped Into the; lap of the national labor relation board. Waterfront authorities beganJ marshalling an avanapie cargo space in the bay! area to 4hold goods in shipment pending set tlement of the) dispute,! in whlcll AFL teamsters stopped trucking to and from the docks in an effort to force a showdown with the CIO overi the status of 75 "locked out" warehousemen al lies of the John L. Lewis organ- faHnti ' i The ClOf filiated "Warehouse men's union i filed .Charges oi discrimination and unfair labor practices against the California Parking enmdration. former em ployer of the workers who had been off their jods since iasx October. ' Victim Dies With Iron Lung N. A. Vlcklund, interne acting as the hospital's house ! physician, were present when Maybelle died. Dr. T. L.I Williams said May belle suffered an "extraordinary acute" attack of Infantile paraly sis. "Everything that was possible to be done was done. It was not enough that's all," he said. Dr. Williams reported oxygen was administered to her through last night and today hlle she was kept constantly in the hos pital's ton-and-a-half "Iron lung," .Maybelle was stricken with In fantile paralysis last Tuesday, 10 days after her brother, George, 17, died of the same disease. While dramatic attention cen tered on their daughter and little Shirley Krause of their need to share the hospital's only "Iron lung," Maybelle'a parents have been forced to sit in thelrehome, (Turn to page 9. coL ced 6 o .7 0S City, Strict T.sitConntv For Taxes Due About $10,000 Is Owed to Salem and $7500 to Schools, Stated Interest and Penalties Figured; Teacher Pay Issue Cleared up The Marion county court will soon face a demand for payment of approximately $17,500 In in terest and penalties on delin quent taxes of the years 1933 and 1934 held due the Salem city and school district treasu ries, It appeared yesterday. Preparations for Instituting a Joint law suit, if necessary, to (Turn to page 9, col. 3) Reservoir to Be Connected Soon Tunnel Is Completed and Rush Job to Be Ended Tonight, Forecast Falrmount reservoir will be. connected to the Ealem-Stayton gravity water supply pipeline within a few days as a result yes terday of WPA crews' breaking through the last barrier In the 500-foot pipe kinn el drilled and blasted through rock under Rural avenue from Falrmount avenue westward. The barrier was re moved at 11 a. m. Six feet high and five feet wide, the tunnel passes almost entirely through rock, much of it extremely hard. Through ! It will run ihe 30-inch welded steel pipeline. The last of the night shift crews which have been working steadily on the tunnel for nearly two months will work tonight, G. R. .Boatwfight. WAes!dent engineer, said yesterday. At times three eight-hour shifts per day were worked on the project. Approximately 200 feet of open trench leading from the jwestern tunnel portal to the reservoir in take structure has already been made ready for pipe laying. Speed Flier Dies As Plane Crashes Day Before Races CLEVELAND, Sept. ?-p)-Lee Miles, Fort Worth, Tex., speed flier, was killed late today on the eve of the opening Of the na tlonal air races tomorrow when he tore off a wing and crashed his special racer on a test flight at Cleveland airport. His ship crashed from an alti tude of stf 0 feet, It Was announced at the administration building of the Cleveland airport, i Miles body was pulled from the wreckage of his ship about a half hour after the crash. His plane did not burn, airport offi cials said. They believed the flier had the foresight to j pull the switches when he found he was in trouble. Jt Miles, a figure in the American air racing game for many years, was rounding a pylon at the north end. of the field at low altitude in his speedy low-wing ship when, spectators said, one wing was sheared off by the tremendous b''etlng of the wind, and the machine plummeted into a grove of trees adjoining the airport. Natives Control Church in China PORTLAND, Sept. : 2-py-Th6 Rev. E. B. Ward, recently return ed from China, today told dele gates to the 84 th annual Oregon session of the United Brethren church that Chinese people now practically eontrol the country's churches. The missionary declared Chin ese were, not long ago, "so illiter ate and helpless that they were unable to take charge ', of the churches the Missionaries estab lished, but that has changed In the past few years and the natives themselves run their own churches without too much out Side assistance from the mission- Astoria Labor Split; Charter Lost. Regained AFL Recognition Taken Away Because CIO Memhers- Vote Special Officers Hired hy Portland Workers to Protect Them ASTORIA, Sept. S-(flV-The As toria central labor council lost its AFL charter tonight and received it again after CIO sympathizers. Including President Roy Klxer and nearly half the total membership, walked out. Ben Osborne, secretary of the Oregon State Federation of Labor, acting on authority granted In a telegram from President William M. Green of the AFL, revoked the charter, charging that the coun cil's transacted business, includ ing affiliation with the Oregon Commonwealth Federation, was illegal because of the participa tion of CIO delegates. About 40 CIO council members hooted Osborne and left the meet ing, stating their Intention of forming a separate organization. Kizer, head of the powerful War- recton local of the sawmill and timber workers union, resigned his post as council president and Joined the bolting group. The Warrenton local is affiliated with the AFL. Following the walkout, Osborne complied with the request of the remaining members that the char ter he returned. PORTLAND, Sept. 2-P)-En- listment of 137 special officers, hired by the CIO millworkers and supervised by the Portland police department, followed today tight ening of the AFL boycott and more minor disorders in the CIO AFL sawmill dispute here. The guards will ride tomorrow (Turn to Page 15, Col. 6.) Signal Operation Delay Is Planned Salem's traffic signal system will probably be ready for. use next Monday but present plans of city officials are not to place them In operation until after the state fair. Work of installing the master control box at police headquar ters was begun yesterday. Harley L. Bosler, local contractor In charge, said testing of the system might start Saturday. Because the police force does not have enough bfficers ade quately to police each of the six intersections at which the signals have been set up, Mayor V. E. Kuhn said he did not believe an attempt to operate ' the system would be made until fair week traffle congestion is past. Musically -Naihed Play Important Roles in China ; . (r - i kS?,, V Mr 1 j'-'v i ' "itV'J 14 i Chlng-Ltag Is V p v. . ft I - " t ' J : If' J -v -'V x , i ' --r'-jJIei-LingjV V It ASrUng , n1 I .', 1 I "l I "I 1 ' , ...... Three sisters, named Soong, together virtually rule . the dentin y of China today. They have names like the echo of temple bells Mel Ling, Ching-Ling and Ai-Ling. First named, Mei-Llnfr, Is 3Ime. CbJ- aag Kai-shek, wife of the Chinese dictator; Chlng-Linjt Is the wi dow of modern China's hero, Dr. Snn-lfat-Sen, and Ai-Ling is the wife of Finance Minister Kung, who holds the purse strings of China. . j Girl Wounded as ' Liner Is Bombed ' ' ' : V ; it Jean Cowen, 17, San Francisco girl and Pomona college stu dent, struck on the arm -by shrapnel when the liner Presi dent Hoover was bombed re cently during the Shanghai battle. DIN photo. Autumn Heralded; Auctions Popular Articles Sell as Hish as 52,000 in "Phonies"; Thousands Attend Fall was ushered in last night by Salem residents in downtown streets as the Ad club's annual fall opening faok place as sched uled, j . Promptly at 1 p.m., ch store window was unveiled revealing bright n e w merchandise in the autumn mode. Every brilliantly lit showcase was a center of ad miring throngs as the window dressers, working for the past two days behind eurtalns,, ptft forth their finest fall wares. At the same time two street auctions at which "phoney money?" was honored, began, at tracting approximately 4000 bid ders and on lookers. Competition was keen among bidders and pric es ran so high that the person holding less than a sizeable wad of "phonies" soon dropped out. First article sold was a hunting knife, at the starting place at Chemeketa and Coma ercial streets, for 0 00 "bucks.' Highest prices paid .were 62,000 "phonies" for a club chair, and a radio sold at 42,000 "bucks." A sack of flour brought as high a 10,000 "phon ies Ben Sudtell of Albany and (Turn to page 9, col. 2) Soong Sisters j" . ' Mystery Subs Are Sought by English Ships Reinforcements Sent to Mediterranean With ' France in Accord Attacks Upon two Naval Craft Climax Series of Queer Events TONDON, Sept. 2-(iT5)-BritIsh naral reinforcements sped into the western Mediterranean tonight with guns ready to thunder Great Britain's answer to mysterious submarine and airplane attacks on British ships. The cabinet decision for more warships In the trouble zone off the coast of Spain was made with the full concurrence of France. Both nations also were agreed on France's suggestion, to bring the Issue before the League of Na tions council at Geneva late next week. Public opinion in both nations, inflamed by newspaper reports and official intimations that Italy is responsible for the increasingly frequent raids on neutral mer chantmen and warships, was be lieved to be nearing the limit of Its patience. Molestation of shipping on Britain's empire "life line," and especially off the east coast of Spain, was capped by mysterious submarine attacks on the British destroyed Havock and the British tanker Woodford. Depth Charges May Have Sank Attacker The Havock dodged torpedoes from an unidentified submarine off the Spanish coast Monday night and loosed depth charges that may have sunk the submar ine. The Woodford, tired on in near by waters a few hours later, was sunk. Her , second engineer was killed. The irest of her crew of 82 brought ashore six wounded sea men in open boats. -Prime Minister Neville Cham berlain, stung into action by the dangerous situation, was under stood to have ordered a full cabinet meeting Septemb 8. Au thoritative sources said Britain's Mediterranean war fleet was (Turn to Page 16, Col. 4.) 4H County Stock Show Will Start The largest 4H club livestock show ever to be held by Marion county's branch of the organiza tion opens today at the state fair grounds for a two-day stand, Wayne Harding, county club lead er, announces. Two hundred head of sheep, hogs, dairy and beef cattle owned by members will be on display. Winning entries, are to remain for the fair next week to enter contests being held then. The show Is scheduled to begin at 10 o'clock this morning. Judg ing contests and judging of sheep will follow. Hogs and dairy and beef cattle .will be judged Satur day. Marion county Future Farmers of America will also stage a show of farm machinery and livestock today and tomorrow. The annual picnic of the county 4-H clubs with members, friends and parents, will be held this noon on the grounds. Byers Injured as Cycle Hits Ditch Wayne Byers, Silverton, re ceived lacerations and bruises where he rode his motorcyele into a ditch to avoid hitting a train at the McNary crossing near Brunk'a Corners last : night, nn who la em nl ore d at the Lakebrook hoe Yard, was brought to Salem by a passing motorist m '. l A .1 I am 4 am 4 ana recti veu msi ia uwnuwn from' the fire department first aid squad. His injuries were not serious. . Late Sports . PORTLAND, Sept 2-P)-Port-land baseball tans saw their coast league entry win its first victory In 11 home games tonight when the Beavers landed on Don Os born of the Seattle Indians tor 12 hits and won, 11 to 3. 1 The Beavers opened 'up on Os born tor - five runs in - the first inning and from then on it was no contest. Osborn was wild throughout. ' ' . ' Bedore hit a home run in the eighth with two on. . The' victory closed the gap sep arating last' year's champions from the first division to : three rames. SeatUe ! Portland , 11 1 12 Osborn and Fernandes; Pose- dell and Cronin. : Fall Near A As Nippon Cruiser Nearby Air -Raid Upoii Kagosliima on Japanese' Island Is Reported but Denied; 72 Russian Planes Arrive British Fail to Heed Warning Raids Near International Area, Fighting Near Marines' Lines SHANGHAI, Sept. 3 (Friday) (AP) Chinese shells fell dangerously near the cruiser Augusta, flagship of the United States Asiatic fleet, today in a heavy" bombardment directed at the Japanese cruiser Idzumo. . Giant howitzers in Footung, industrial section across! the Whangpoo river from the international settlement, burst! " O into action at 10:48 a. m. today. Japanese Seeking To Restore Amity Chiang Greatest Obstacle to'Peace, View; Peace Groups Here Active TOKYO, Sept. Z--Japan's main objective In her undeclared war with China, Foreign Minister Koki Hirota told foreign newspa permen today, is elimination of the anti-Japanese elements" that dominate the present Chinese gov ernment and "establishment of cooperation between China and Japan." He named Gener;l-Chian Kai Shek,: premier and head of the Chinese armies, .as "'the spear head of anti-Japanese movement" In China and Indicated Japan wanted to destroy his Nanking re gime. V - -! Hirota's call for destruction of the Nanking government was echoed by the major political par ties, minesito and seiyukai, which in a national mass meeting adopt ed a resolution declaring that General Chiang's regime must be overthrown and "China must be chastised." The parties, on the eve of the emergency session of parliament which will convene tomorrow to vote more funds for the war in China, also voted unanimous sup port for the wartime policies the government will ask parliament to approve. These include rigid government eontrol over almost the entire economic fabric of the nation, in cluding use of private capital. WASHINGTON, Sept l-(ff)r Six peace organizations acting in concert renewed their demand lo (Turn to page 9, col. '6) V First BendixRace Plane Gets Start LOS ANGELES, Sept 3-()-Jacqueline Cochran, New York aviatrix, soared into the air at 12:04 a. m. (PST) today, the first of nine speed pilots" to get away in the $24,000 Bendix transcontinental race. - . Thousands of cheering ayla tion enthusiasts, jamming Un ion air terminal and massed In automobiles oh roads for several miles around,' saw "Jackie," wife of multi-millionaire Floyd B. Odium of Wall street, lead her eight male rivals at the start B.- C. Sundorph, of Cleveland, flying a plane of his own de sign, with John Tost as co-pflot, was the second to leave, at 12:20 a, m. (PST)k Hongkong Typhoon Toll Oven 500, May Run in Thousands HONGKONG, Sept. 2-(jp)A 12 5-mIle-ah-hour typhoon roared across Hongkong and the nearby teeming Chinese coastal communi ties today, exacting a death toll which officials believed to be at least 500 and feared might run Into the thousands. Huge ocean liners were hurled aground, fires spread by the gales swept through congested Chinese quarters of Hongkong, trapping many in their homes. There was heavy loss of life among thousands of Chinese who live on small boats when their floating homes were dashed against the Hongkong seawall or Orcky - costs and smashed to bits. -Distress calls from foundering ships raised fears the loss at sea would be heavy. : i - ; - Destruction In Hongkong har bor was especially great because the port was Jammed with ship ping of all descriptions held here ugusta Bomba re (6:48 p. m., PST Thursday) against the battle-scarred Idzumo J Many of the shells fell in the Whangpoo between the Ameiicaa and Japanese flagships. j Widespread tires blazed n land points struck by the bursting missiles. The barrage followed the open ing of a guerilla campaign by Chinese snipers concealed alongi the Pootung shore, opposite the Augusta, against Japanese war ships and war planes which have been harrying the area. i Other sharpshooters pepperedj away at Japanese destroyers far-jj ther down the Whangpoo off the; Woosung,, shore and along the! . Yangtze river, near PaoshanJ causing little material damage but keeping their enemy discom-l fitted and on the alert. ' j Chinese circles earlier- were electrified by unconfirmed re4 1 ports that Chinese bombing planes had flown to Japan and : bombarded Kagoshima on the ' southern island of Kyushu. '.-A (The navy office In Tokyo" oH" ficially denied' these reports:) j ' ;' Well authenticated reports said the Chinese airforce bad struck telling blows " closer to home, with punishing raids against the Japanese , forces which have gained a footing on the southern bank of the Yangtze , rlver. ' Ten Chinese bombers fromi bases west of Soochow caused! heavy losses and returned to their bases unscathed. Chinese planes also bombed the air base the Japanese, arm recently ' established r on Txung-f '. mind island, in the Yangtze s4 tuary. " The Chinese aerial activity was reported seriously dislocating , Jajanese plans to land a huge expedition along the Yangtze shore for a usb Inland. Japan-r ese officers continued to "Say tWvri big offensive was about to be gin, bjnt $he sore hour was not revealed. - - ' A The; said 200 big guns vera being landed, to blast a way0 through the Chinese defenses, r I Late Thursday Japanese bomb- era continued to operate close to- the American: marines' and Brit-? ish infantry defense lines la Shanghai's international settle (Turn to page 0, col. ) ; J ' t . . ' 'I- Dearborn Winner Of Golf ine Award SP0KANE, SeptT 2-(ViIem bers of the American Institute of Electrical Engineers selected Portland, Ore., for their-193 8 Pa cifle coast convention city tonight and : closed t h e present meeting with a banquet. 'A R. H, Bearborn . of CorvalliSf Ore., won the engineers golf eu9 on a roll of the dice after he had tied with Chlrles H. Cutter f Se. . attle and C. C. Booster of Port land. . . by the dangers of the Chinese Japanese war raging to the north', Among the big ships snatched -from . their, storm moorings and ' hurled aground were the Japa nese trans-Pacific liner Asama Maru, 16,975 tons, and the 1 tali -lan luxury liner. Conte Verde, ' 18,765 tons, one of the, finest, ships plying between' Europe and the far east. It was believed beta , could be refloated. 1 , The 4,552-ton Dutch passen ger ship Van Heutss was a total loss, i Two British ships, the Mausang and the Boong Court and the Chinese i Queton were reported sunk, as was the Hu nan, ? carrying 1,200 Chinese . refugees from Shanghai. At least -20 ships are bellered to haTf gone down. . The great wind carried de struction i through wide areas f this j British crown colony and Tnrn to page ,'cok e)