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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Oct. 28, 1937)
Bargain Near End Only for the remainder of this week may mail sub scriptions to The Statesman be obtained at the bargain rate of 94 per year. Weather Unsettled with rains to day and Friday, cooler; Max. Temp. Wednesday 70, Mln. 60, river -2.6 feet, south-southwesterly wind. POUNDQD 1651 EIGHTY-SEVENTH YEAR Salem, Oregon, Thursday Morning, October 28, 1937 Price 3c; Newsstands Se No, 184 OOTID MOT Reserve .Board' Acts Selling , ltd Political Hitch -Hikers to ' Be 1 Spurned b y ToSnsend Forces Direct Action Via Initiative Is new Policy Petition Circulation to I tie uraerea ai xoaay s Meeting, Forecast Candidates Forget Their Promises, Is Charge; Govern ir Praised Politicians in Oregon are going to find It extremely difficult it not wholly , impossible to hitch hike their ;way into public office on the Townsend pension vehicle, it was declared here Wednesday flight by Glen C. Wade of Pendle ton, second district manager and special representative of the com mittee which recently asked Gov ernor Charles H. Martin to call a special session of the legislature. Governor Martin has declined to call the special session and with this decision Wade said he bad no quarrel, pointing out that the Townsenders "must be Americans" and reverence constituted author ity. He praised the governor for 'giving the movement courteous and careful consideration. Wade pointed out however that the request for a special session Involved not only Increased old age assistance provisions, but en dorsement of request for a federal constitutional amendment era bodying the Townsend philosophy. Bad Experience With. . - ";V. "rromisers" Cited Declaring that he was confident . the committee, meeting here to day,' would vote to accept Gov ernor Martin's advice and Invoke the initiative to gain these two objectives. Wade said: "The Townsend two-Point pro gram is going to mean that the Townsend forces In Oregon shall from here on find themselves in terested In obtaining their legis lation rather than In electing candidates to office, for we haveJ had sad experience in that many candidates have not kept faith with the Townsenders. We have therefore decided to arrv our Issues to the voters, be lieving that if the people have the opportunity, they will approve them at the polls." . Referring to statements of . other Townsend club leaders In dicating 'dissatisfaction with the governor's decision, Wade said: "It is altogether probable that manv Townsenders are keenly dis appointed at the decision of the eovernor. but it is also probable that they will welcome the oppor tunity to present the two-point program to the voters, believing that both measures will receive a (Turn to Page 12, Col. 4.) 0 dditi cc ... in the Ncu OMAHA, Oct. n-yPf-VLn. Lil lian Phillips of Omaha, seeking a divorce from her husband, Her bert, testified in district court to day they lived' together for a year without speaking to each other. Tbev ate their meals in silence, sat and read evenings in the same room without a word Deing saia, and listened to the radio without comment, Mrs. Phillips stated. . They were married in 1932. EVAXSTON, nL, Oct. 27-P If yon want to get on the Evanston police force, you bet ter go to college. Among applicants for Jobs are six members of the North western.' university football squad Captain Don. - Heap, Quarterback Fred Vanao, Guard Mike Calvano, End John Ko vatch, and Centers Irv Wegner and Ed Klamm and Fred Ren kle and Robert Carter of the basketball and track; team. Okla., TULSA, Okla., Oct. 27-OSVA Tulsa attorney- returned today from a trial at nearby Claremor$ "ancP told of, a Jury that ate the evidence. - ' The lawyer, Frank Hickman, represented the Converse Oil com pany In a suit brought against it by Dan House, of Chelsea, who charged oil had polluted his land and killed his pecan crop, Hickman inspected the land and gathered some pecans. He introduced them in evidence. Mid way. in the trial, after the nuts had been handed the jury for in spection, Hickman heard a crunch ing in the Jury box.' The Jurymen were cmawinsr the nuts' And Hickman's defense suc ceeded. Water SysteJQpening Program Announced; Brief but Significant Inspection of Reservoir, Island to Be Stressed, Souvenir Cups; Speaking Is Curtailed Simple but significant ceremonies will mark the dedi cation of Salem's improved municipal water system Satur day, the chamber of commerce last night. The formal program inspection of the recently-completed reservoir, supply line and underground source projects will be stressed. O Water Agency to Drop 7 Employes Smaller Crew Is Required With End of Pumping; " Services Praised Seven employes of the ' Salem water department will be dropped from the payroll November 1 as a result of abandonment of the Willamette river pumping system, the water commission has decid ed. Two weeks' salary bonuses will be granted released employes who have been on a monthly sal ary basis and have been with the department for several years. Main pumping Station -t)pere-- tors whose services will no longer be required are Guy C. Newgent, former mayor of West Salem; C. W. Russell and Charles Crary. Charles Nadvornik and Henry Helton, who have been employed recently in connection with low water season pumping on Minto island, and Clell Thomas and A. T. Witte of the maintenance de partment are the others to be re leased. In recognition of their many - yi ears' service with the water sys tem, .'iod Martin and Norman Smith, who are in charge of the Minto island operations, will bo retained and Assigned to the maintenance department. Manager Cuyler VanPatten yes terday commended the seven men for their service to the depart ment end expressed regret at hav ing to let them go. 12 Miners Killed, Two More Sought ANCHORAGE, Alaska, Oct, 27 -ipy-Muckers dug through debris tonight tar the Evan Jones coal mine in search of two miners be lieved buried there after an ex plosion and cave-In which killed 12 men and Injured one. Except for Pete Olson and Joe Lucas, the rest of a crew of 19 at work when the explosion oc corred yesterday were accounted for. Four men escaped unhurt. - The body of Augustine Urbich was recovered late today. The blackened remains of 11 other men were taken to Anchorage. Mine officials said they had found no explanation for the blast which tore through the mine, SO miles from here. JURY WHICH V j At Scene In the courtroom at EHzabethtown, X.Y., where John Montaene7 ' on s seven-year-old robbery charge.: Arrow points to the defendant. James Koonan, Montague's conn, eel, is standing at left. The jury, shown at the right, Tuesday night returned verdict of not guilty, to which Presiding Judge Harry E. Owen took futile exception, - '5$ 5 Pipeline and Source at Water Sampled' With celebration committee decided will be cut to a minimum and The dedication program nroner will take place at the new reser voir located on the south side of Fairmount hill at Rural ave nue and John street at 2 p. m. There the water , coming 18 miles from Isolated Stayton island in the North Santiam river may be seen through the windows of the overflow house before it Is di verted into the new 10,000,000 gallon reservoir. Pumps which supply the 10,000 gallon tank on the crown of the hill directly from the supply line and the reservoir (Turn to Page 12, CoL 2.) Shanghai Troops Digging in Again U Marines Are Ordered to Shoot if Attack Is Made From Air " SHANGHAI, Oct. 28 -(Thurs day) (JP) Shanghai's defenders fought today with their backs to the Soochow creek on the border of the international settlement. Across the stream, at barri cades on the south bank, US mar rines watched the shifting battle- front under orders to shoot in self defense at any airplane at tacking them or noncombatants. Adm. Harry Tarnell, comman der of the U. S. Asiatic fleet, auth orized .the protective orders when the Chinese retreat cm the north ern edge of the International set tlement brought intense fighting close to the foreign zone. Further upstream, to the west of the international settlement, the Chinese were entrenched on the south side of the creek, de fending a narrow strip of the na tive city between the stream and the foreign area. ' The Chinese dug in on their new line after withdrawing from (Turn to Page 12, CoL 1.) Hattie Lawrence Dies of Injuries PORTLAND, Oct. 27HWVTraf- fic accidents brought death to two pedestrians today. Mrs. Hattie B. Lawrence, 78, manager of the Pisgah home for the aged near Scappoose and, as "Mother Lawrence" widely known for her charities, succumbed at a local hospital from injuries receiv ed when struck by an automobile last night. v i . . The driver of the car was not held. Frank William Hahnen, (5, was struck by a car and Injured Oc tober 17, ; v , DECIDES MONTAGUE INNOCENT , 1 , 4 i I ' ' ' Labor's Peace Conference Is Near Collapse Delegates Quit for Week After They Find no Common Ground Meeting Deemed Failure Unless Concessions Made by Both WASHINGTON, Oct. 27-(i!P)-The peace conference of the AFL and the CIO obviously was near collapse tonight. Only extensive concessions from both sides, which neither seemed willing to make, could, it was believed generally, keep the meetings alive much longer. Finding their respective peace proposals devoid of any common ground that could be made a basis for compromise, the conferees ad journed today until Thursday, No vember 4. In fact, the federation issued a statement late in' the day as serting it had received no help from the CIO delegates "tn com posing existing differences." It accused the CIO men of procedure which "seriously jeopardizes" the possibility of success. Federation Stands On Earlier Terms "Unless there is a change in their attitude," it said, "and com plete willingness to approach the consideration of the problems at (Turn to page 8, col. 5) Last Sawmill at ' Portland Closes PORTLAND, Oct. 27 -(jPJ-The West Oregon Lumber company advised employes today its Linn ton plant would close Thursday night for an indefinite period. The closure, marking the com plete tieup of major sawing oper ations, here, will affect the Flora Logging company at Carlton, em ploying 500 men, which was or dered to curtail "heavy produc tion." The company's announcement said the shutdown was the result of poor market conditions, but of ficials of the CIO sawmill union immediately charged "collusion" by the management with the AFL, and AFL officials hailed the de velopment as a victory for its boy cott on CIO products. The mill opened on a half-time basis with 350 CIO employes fol lowing the successful moving of a cargo of CIO lumber to Califor nia ports despite AFL' picketing early this month. Governor Invited To See Cornhusk Invitation to attend the 14 th national cornhuskjng contest, to be held November 4 at Marshall, Mo., came to Governor Martin yes terday in a corn cob. The gover nor wiU be unable to attend be cause he will leave Tuesday for Tulsa, Okla., to attend the 20th anniversary reunion of the 90th US army division, which he com manded during the World war. ..s V 7 -,r i 4 ,1 alias La Verne Moore. Was on trial Matson Death Also Scanned, Ledford Case Murder of two Girls Is Formally Charged to Their Stepmother Guilt Denied; Insurance Policy Is Made out to Accused, Revealed ST. HELENS, Ore., Oct 27-(ff)- A twice-married mother of two children, quietly but firmly de fending her innocence, was held in jail at Portland without bail to day while officers investigated three deaths those of two step daughters and the woman's first husband. The prisoner, 35-year-old Agnea Joan Ledford, was arrested last night on an information filed by Sheriff M. R. Calhoun, accusing her of first degree murder in the deaths of Dorothy, 15, and Ruth Ledford, 13, who had been all but forgotten publicly as the girls who died because they liked berries. No charge had been filed con cerning the third death, that of John Matson, who died in 1932 as the husband of Mrs. Ledford, now the wife of George Ledford, a Col umbia county groceryman. Dist. Atty. David BennAt, claiming a purchase of poison on the alleged pretense of using it to kill earwigs had been traced to Mrs. Ledford, asserted the lethal mixture had been found in her home and that the equivalent of an amount missing was found in the children's stomachs. The prosecutor asserted that Mrs. Ledford was named benefi ciary in an insurance policy for the children, daughters of George Ledford and his first, wife, now Mrs. Pearl Turner, Los Angeles Denial Is Made by Woman in Portland "I didn't do it; I couldn't have done such a thing," Mrs. Ledford told a reporter in Portland, where she was taken because there were no jail facilities here for women Behind her she left two infant boys, one six months and other 21 months, the children of herself and George Ledford. Ruth and Dorothy died last month within two days of each other. At the time, sheriff's offi cers expressed the belief the chil dren had been poisoned by eating berries in a patch onto which a poisonous spray from a nearby or chard had been blown by wind. I Bennett disclosed that tne body of Matson, whose death was as cribed to acute gantritis had been (Turn to Page 12, Col. 1.) Million Doubtful, Montague Earning HOLLYWOOD, Oct. 27. - John Montague is coming back to the scene of his unconventional golfing triumphs to play some more golf, but not, apparently, for a million lollars, Montague, who, under his true name of La Verne Moore, was freed yesterday in Elixabethtown, N. T., of a seven-year-old road-house robbery charge, Is returning to Hollywood to fulfill the . terms of a contract with Everett Crosby, Bing's brother. "How's he going to make that million dollars?" was asked of Larry Crosby, who is associated with his brother in an agency business. "Million dollars!" gasped Larry. "He's going to make a couple of shorts, showing how he plays golf, but they won't bring In more than $20,000. There's a deal on for some magazine stuff, pic tures and life stories. I guess he'll go on Blng'a radio program. He'll probably get a thousand or so for that." " Ulterior Motive Denied, Windsor PARIS, Oct 27-aVThe Duke of Windsor, declared today he and his American-born .wife were go ing to the United States without political designs. u He said they were only trying to aid m - finding a solution to "some of the vital problems thai beset the world today." The duke described himself as "a very happily married man" and announced he would sail with the duchess November 6 on the liner Bremen to spend about fire weeks in the United States. , - ; f. : ; - In his first public speech since his abdication last December, the duke said at a lui cheon of the Anglo-American Press association that "my wife and I neither are content nor willing to lead a pure ly Inactive life of leisure." , The former king admonished the press not to seek "ulterior motives in regard to our doings." Dog That Saved Tiny Girl's Life , Given Hero's Stubby, an Australian Shepherd home of Mr. and Mrs. A. R. Mansfield and carried their daughter. Shirley, 2H, through the flames to safety, was recently given a hero's burial at Medford. The child was only slightly injured, but Stnbby died of burns shortly after the rescue. Photo shows Shirley and her mother standing beside the grave of her pet. Rev. William B. Hamilton of Yreka, CaL, conducted the unusual services. UN photo. Silverton Budget Reduced by $2000 Total Is $14,540; School District Amount Also Finally Approved SILVERTON, Oct. 27 Sil verton's city budget, completed tonight but subject to final ratifi cation at the citizen's meeting which was scheduled for Novem ber 8 at 8 p.m. in the city hall, re veals a reduction of $26 00 below the 1937 figure. The total of es timated expenditures is $14,540. The reductions effected by the ation of the park police expense, ation oft he park police expense; transferred to the park fund; la bor and . supplies reduced $500, street cleaning $150, lighting $100 and entergency fund $250. The Bchool district budget committee also completed Its work tonight and adopted the budget of $89,298.10, which is an increase of $4847.60 over the present year. Since non-tax receipts were esti mated at $2700 higher, the in creased tax will be. only about $2100 in advance of the 1937 school district levy. Supt, Robert Goetz pointed out that another call for school dis trict warrants amounting to $8200 had reduced the outstand ing warrant debt to $23,298. Mott Won't Enter Senate Race, Says EUGENE, Oct. 27-(VCongress-man James W. Mott of Salem is not considering running for the United States senate in 1938, he informed friends here today. Here to speak at a joint meet ing of the chamber of commerce and the Lions club, the congress man indicated he would seek re election to his present post. Bonneville Yardstick Hasis Set up; Pay off in 40 Years HYDE PARK, N. T., Oct 27-()-PresIdent Roosevelt took the first step today toward the goal of one of his principal power ad visers a uniform system of rales for all federal electricity, J. D. Ross,' administrator of the Bonneville, Ore., power dam project announced that . Mr. Roosevelt had approved -a 3 per cent interest rate and 4 0-year amortization plan for Bonneville, On that basis, taken in connec tion with the number of kilowatts produced ' at the dam, Ross will determine the rates to be charged for Bonneville power. The dam's steady, running capacity Is 430, 000 kilowatts. . ; The basis, which Rosa described as a ,Vyard sUck" "for all federal power projects, will be applied to that part of the , cost of - Bonne ville that Is charged against pro duction of current. The federal power commission, he said, is now breaking down the more than $50,000,000 the government Is Burial at Mediord ' ' Aw- V . - . dog that dashed Into the burning Letters Gted for IEU Interference Request for Organizer to Visit Potlatch Plant Mentioned, Claim PORTLAND, Oct. 27-;p)-Two letters, which national labor re lations board attorney John Babe said showed interference by em ployers on behalf of the Industri al Employes' union, were ad mitted as evidence in the labor board hearing on charges of company-unionism here today. The letters were written by Jack Ziemer and Jack Wolfe, field organizers for the union which claims 12,000 sawmill and timbSrworkers in the northwest as members, and were among 530 items of correspondence from IEU files which Babe sought to have admitted as evidence. One letter stated that Tom Kenney, assistant- general mana ger of Potlatch Forests, Inc., of (Turn to .Page 12, Col. 1.) , Elixir Death Toll At 57 and Rising CHICAGO, Oct 27-ff-Death attributed by the American Med ical association to an elixir of sul fanilamide reached 57 tonight. The total was an increase of six for the day. Dr. P. M. Leech, sec retary of pharmacy and chemistry for tne association, said the latest verified elixir deaths occurred at Collins and Magee, Miss.; Swaina boro and Dahlonega, Ga.; Wichita Falls, Tex., and Arab, Ala. Dr. Leech said that probably only five or six more deaths would be verified as resulting from the elixir, containing a drug common ly used in industry but not rec ommended for internal use. The federal food and drug ad ministration has confiscated vir tually all of the drug. spending at Bonneville Into two items power and navigation. When the power development cost. is determined, he disclosed. the federal treasury will be paid 34 per cent interest annually on that sum and plans will be made to repay the capital cost over 40 years, , -.-.-, - Ross said he hoped for, .and pro posed to the president that the Bonneville basis be used on all federal power developments. -:' The f Bonneville administrator said that would be placing an the government's projects, including TVA, Boulder' and Grand Coulee, on a' strictly financial basis," and at the same time would Insure against discrimination for or against any region. .; Boslder has a four per cent in terest rate. There is no fixed in terest charge for TVA. None has been fixed yet for Grand Coulee, -v.. Another proposal . that Ross made was the lmmedlate-4oining of Bonneville and Grand5 Coulee I by a power distribution line. 1-2 - . ..... " o ;i:.R '1 Lower Margin On Purchases Also Decreed 50 per Cent Required on Short Sale as First . Such Regulation Action Is Calculated to Stimulate Buying and Control Declines WASHINGTON, Oct. 27.-APy-The federal reserve board an nounced tonight a drastic revision in its stock market margin re quirements. The move was expect ed by many Washington aathor ities to bolster sagging security prices. The board, after extended con ferences regarding the stock mar ket down-trend, announced It would make a two-way change tn the margin requirement effective November 1. The existing requirements that purchasers of securities must pat up 55 per cent of the price in ean was changed to reduce the margin to 40 per cent. In addition, the board imposed a 50 per cent margin in short sales of securities. This means that a person selling a stock short must put up 50 per cent of the value. Expected to Borve As Powerful Brake This is expected to act as a powerful brake against short sell ing. The reduction in the margin for security purchases, on the other hand, may tend to encourage buying. Although federal reserve board officials flatly declined comment on the effects of the new program, other officials generally believed it would tend to increase security values by making buying easier and selling more difficult. It was understood that the board conferred with the, securr ties 'commission before acting. The action was interpreted by some informed persons as mean ing that the board would make margins more flexible in the fu ture, adapting them to changing market trends. - The 55 per cent margin en se curity purchases had been in ef fect since February, 1936. The margin on short sales was an innovation in reserve board regulations, no margins of this kind having been imposed in the past. The New York stock exchange, however, has required short sell ers to post a 10-polnt margin. Collateral Margin Is Also Reduced The official margin for short sales, authorities said, was im posed after the reserve board's legal staff had matle a thoreugn survey of the reserve system aet. w uvcuaju nuciuci auiuuili ivr such action existed. In connection with the lowering of the buying margin for securi ties traders, the board, also whit tled the margin which securities brokers and dealers must put up with banks from which they bar row on securities. This margin was cut from 40 to 25 per cent Japanese Decline, - BrusselsMeeting TOKYO. Oct. 27 - (JP) - Japan formally rejected an invitation today to attend the Brussels nine power conference, declaring the meeting was inspired by the League of Nations and would "put serious obstacles in the path of a just and proper solution" of the far eastern situation. - The refusal to confer with oth er signatories of the 1922 Wash ington treaty guaranteeing Chi na's territorial integrity wss handed by Japanese foreign min ister Kokl Hirota to Baron Albert de Bassompierre, Belgian ambas sador. Hirota previously had received Imperial sanction for the reply. After making Japan's decision known In a lengthy. Informal statement accompanying the re fusal, he summoned U. S. Ambas sador Joseph C. Grew and. British Ambassador Sir Robert Leslie Cragie to explain the nation's at titude to them. Lincoln County Leader Editor-Dies Wednesday TOLEDO, Oct 27-(if)-A heart attack claimed the life today of Henry Howell, 5, pioneer resi dent and . editor of the Lincoln County Leader. RA L L A D E vo TODA V By R. C. ' The Hallowe'en season'! drawing nigh it's Sunday, un less the date's been changed, but on Friday night out at Les lie high it's reported "A Mar der Has Been Arranged.