mt BMMm mm . Art .Appreciation V The 48 famous paintings ' ffered by The Statesman are being purchased by an ever-increasing number of tbia paper' reader. Weather Fair today and Thursday, little change In temperature. Max. Temp. Tuesday 45, Min. 28, river 8.4 feet, light southerly wind. , POUNDDO ' 1651 .EIGHTY-SKY KNT11 EAR Salem, Oregon, Wednesday Morning, December 1, 1937 Price 3c; Newsstands 5c No. 213 (imiiniistraltioe o n o o TD Millies ixi ear : to Flag U Denied by " "" Shanghai Consul Invaders Take Kiangyin, Will . Attack Capital When Forts Fall SHANGHAI. Dec. i-( Wednes day )-(iip)-Dipiomatic sources said today they understood Japanese oMicials had decided to return an American-owned steam 1 a u a c h seized by Japanese yesterday. 'American consulate officials confirmed Japanese assertions that Japanese 6aSlors had not thrown the United States flag Into the Whangpoo river when they took over the vessel. It was . said the flag was handed to a Chinese launch close 1y. A Japanese embassy spokes man, denying that Japanese had thrown the flag t overboard, de clared tlfe Chinese crew hauled down the flag of the launch seized yesterday ..and now in cus tody of the Japanese navy. United States Consul-General Clarence E. Gauas lodged a pro tect with the Japanese consul general against the alleged dis courtesy to the flag. The launch was owned reportedly by the William Hunt Steamship - com pany. 1 ' - ' The spokesman- said -the Jap anese navy, certain thatkthe ves sel was the property of the Chi nese government, seized the ' launch nnder recent Japanese naval, blockade regulations. Ready to Return If Ownership Proven He said that i if Americans could prove Ownership Japanese authorities were ready to return th launch. A reply to American ....n.n(.fiTi urer the Incident will i made after a Japanese- naval investigation, he declared. . The spokesman admitted that f fve other small i vessels of pur ported foreign nationality were seized. Including two Italian ships, but declined to reveal the ships Identities. . j .. The disputed f 1 atfn c h was (Turn to Page 2, Col. 3) dditics ... in the Nete NEW YORK, Not. 30P)-, . Police Comm. Lewis .Valentine got caught in a traffic jam to day, along with Deputy Harold Fowler, whose Jb la to see that those things dont happen. There had red faces: Fowler; two traffic patrolmen who had - to be hunted oat by Valentine's chauffeur and put to work; an unestimated number of motor- ists who got tickets for mot parkins right; and two detec tives who had -double parked their -car to " visit the district attorney's office. LINCOLN, Neb., Nov. ZQ.-JP-Ladies, Is It worth $2 annuaUy to keep your age a secret? That, is a question Nebraska women may have to decide when the tax assessor makes his annual visit next spring, i County officials said today too many women write "over 21" .or "21 : plus" on the old age assistance tax schedules, then come in later and ask can cellation of the tax because they . are over 60. "These cancellations will have to atop," said County Clerk J. B. Morgan. "It looks like the privi lege of withholding one's age is going to cost 12 from now on." WASHINGTON, Nov. 80.-P) -It's all right for postmen to feed birds, so long as they dont charge the food up to Uncle Sam, the postoffice department announced today. During the winter, when snow covers the birds natural food, mailmen may scatter grain pro-. Tided by Interested persons or organizations, i HOUSTON, Tex., Nor. 30.-flV- Anyway, this much seems certain the police wilt go after holiday inebriates. , Foreman L. ; W. Mattson jjald . the grand Jury conferred with law enforcement officers and decided on this Yuletideh plan i - Intoxicated persons who dont feel up to the task of driving the family car can tall headquarters and a policeman will see them safely home. . t - But Mayor R. H. Fonvffle modi fled the service : a little. : "We might go out and get the drunk,' h agreed. "But we're going to take him to jail not home. ; :i Vommittee Site Opposite Sppreine ' Court Building Selected; big Tarbklof Gloving Is Handed to Mobdi6; : may Delay Until After Christmas Negotiations were completed yesterday by the commit tee representing Willamette university, for the purchase from li. H. Hoffman of the old postoffice building in Salem. It will be removed froir its present site to a spot on the north east corner of the campus where it will be converted into a hall of law and government for the university. O Arrangements were made with Miller Assistant Postmaster Here 28-Year Employe Selected to Succeed A. Gibbard, Effective Today Appointment of Paul W. Mill er, an employe of the office for 28 years, as assistant postmaster of the Salem postoffice was an nounced yesterday by Postmaster H. R. Crawford following receipt of prders to that end from Wash ington, D. C. Miller takes the place of Arthur Gibbard. retired. The o."Jer is effective today. Mr. MUler first Joined the post al force here on January 1. 1910, serving for 18 months as substi tute and then receiving permanent appointment. He divided his time for two years between, the. money order and registry and stamp de partments, then was -assigned to the money order department. For virtually 20 years he has been secretary of the civil service board here, a position he resigns with promotion to the assistant postmastership. Since June, 1931, he has been a special clerk, being one of two of the postal staff to hold this rating. , Mr. . Miller has served under four Salem postmasters, Squire Farrar. August Huckestein. John Farrar and the incumbent, H. R Crawford. Weisner Captures Highest Award in State Corn Show PORTLAND, Nov. 30-(ilp)-E. G Weisner of Brooks, took the sweepstakes award today in Ore gon's first corn show. Exhibits from all over the state were dis played. District first place winners were L. E.. Gulker, St. Helens, district 1; Weisner, district 2; Robert Ewing, Salem, district 4, and T. H. Brewer, Ontario, dis trict 5; no awards were made for district 3. . Robert Marsh, . Jr., of Albany, won sweepstakes honors in the 4-H club divisirn and was first for his district. Others were Elmer Bierly, Ger vals, district 2: Walter Marks. Roseburg. district 4, and Joe Stewart, Ontario, district 5. Ltnn county 4-H clubs wen the 125 prize for the best county exhibit. Ice in Rogue Valley MEDFORD, Nov. 30.-(P)-Ice formed in the Rogue river valley last night as the mercury dropped t o23.8 degrees here, a new low for the season. County Budget Approved, Has Relief Buffer Final approval was given the 1938 Marlon county budget by the budget committee and the county court yesterday afternoon-! alter a new fund, a $10,000 re lief program buffer appropria tion, had been created and $288 had been added to the $1200 preliminary allocatiob for horti cultural inspection. . f; The completed budget appro priates $935,738.23 of which $648,108.23 will be raised by tax levies The total.tax nnder the 6 per cent limitation,-: $555,359. 60, will be $161.60 less than the maximum allowable. ; Although the sum of all appro priations for 1938 is only $770.52 below that for 1937, the jnew to tal tax is $17,624.48 lower than for the current year because of increased, anticipations of non tax revenues and elimination of the $30,000 state property tax. . Aside from setting up the ex tra relief fund and boosting the horticultural service appropria sderiM'-EuiMmg yiduhces i A. D. Moodie, veteran building mover of Portland, for the re moval of the building. The com mittee's arrangements are subject to ratification by the executive committee of the university, but since the project has already been considered favorably by the hoard of trustees, this approval is con sidered certain. Postmaster H. R. Crawford is desirous of using the old building as parcel post dispatch head quarters through the Christmas season. If ' he obtains authority from Washington for extension of time for completion of the new postoffice the building will not be removed until just after Christ (Turn to Page 2, Col. 7) Rates to Outside Users Undecided Specials Committee Views Water Charge Issue $ ; Details Studied More than three hours of dis cussion proved not enough last nignt ior a special water com mission committee to agree on regulations and a rate schedule for serving out-of-city ' customers and as a result it was decided to meet again before the regular commission meeting Friday night. Chief points of argument! were requirements as to type of mains the water department ..would agree to serve and rate surcharges for non-resident service. On a divided report the,, commission will ' receive recommendations that it do and that it do not re quire outside mains to be laid in accordance with city specifica tions. On the rate question Chairman E. B. Gabriel contended for at least a 11.50 minimum rate. against $1.20 inside the city, and in addition a 25 per cent increase in minimum rate. As en alterna tive he suggested a $1.75 mini mum and 10 per cent surcharge. Commissioner E. B. Graben horst maintained little if any in crease in rates should be set up for outside consumers. Dr. O, A. uison, mira committeeman, ex pressed no definite figure, but urged that the rate he made low enough to attract numerous out side water users. Crown Zellerbach Profit Shown for Six Months PORTLAND, Nov. 30.-(p)-The urown zellerbach corporation re ported today a net profit of $4. 440,801 for the six months ending October 31, representing $1.37 for each of 2,261,199 Bhares of common stock. Profit for the same period in 1936 was 12,976,548 or 73 cents a. share. of $935,738 tion, the committee's only other actions were ratifications of changes tentatively made in the preliminary budget by its mem bers November 12. These actions included reducing the circuit court fund by $2000 and raising the county school fund by $890, the county library fund by $8.90, the courthouse fund, to increase Janitors', salaries, by $540, and --nivi f Bupennienaent a . ap- vuvriauon, ior additional cleri cal help, by $125. " r me new relief fund, effected by, appropriating $10,000 from the county's surplus, was set up on tne urging of Commissioner iitoy s. Melson and E. L. Wieder, cnairman : or . the county relief committee,- Regular apuronria- tlons for old age assistance, di rect relief, aid to dependent chil dren and to the blind are in dan ger of being exceeded during the new year, the two men , pointed out. The buffer fund will be .(Turn to Page Z, CoL 2) Lumber. acrapi i f 3 Delegates From Eacb Faction Meet After General Parley Meeting Said "Friendly" but no Report Made Progress as to PORTLAND. Nov. SOGPr-David Robinson, attorney and member of the Portland inter-faith coun cil who presided at a conference of AFL and CIO representatives today, said he was "very hope ful of accomplishments" when the group reconvenes at 11 a.m. tomorrow. He called three delegates from each group to his office after' a conferenc yesterday of all inter ested parties called by Regional Director Charles W. Hope of the national labor relations board, filed to obtain AFL consent to submit the jurisdictional dispute in local sawmills to an employes election. "If the plan is definitely turn ed down, - that terminates that phase of our part In the case, Hope said. Gov. Charles Martin and May or Joseph K. Carson, who had in dicated they would enter the dis pute if the conference failed, made no comment today. Abe Mulr, vice-president of the United Brotherhood of Corpen- ters and Joiners, left today for California where, he said, he would attempt to tighten and ex tend ;an AFL boycott on north west CIO "lumber" v V . . Robinson said today's meeting was "very friendly." The direc tion of the discussion was not disclosed. November Is Wet But not Wettest November, 1937, with 11.13 Inches of rainfall went down m local weather history yesterday as the third "wettest" in the 45 years that official records of pre cipation have been : kept. :The mean average fo the month is only 6.16 inches. Only November, 1896, with 16.99 inches and November, 1897, with 11.67 inches exceeded the mark set last month. Rain fell ev ery day excepting on the first, sec ond, third, fourth, sixth and 30th The heaviest single day's preci pitation, 1.36 inches, occurred on the ninth, with the 19th and 20th running close second and thirds with 1.24 and 1.23 inches of rain. respectively. In contrast November, 1936, with .51 inch of rain was the driest on record. Pierce Will Back House Farm Bill WASHINGTON, Nov. 30-i!P)- Kepresentative Pierce CD-Ore) chairman of the house agricul ture committee's wheat section, said tonight he doubted if the country was ready to take such "arastic" action as that provided in the senate farm bill. As a result, he said, his group was generally opposed to any plan which would reconcile wheat provisions of the house farm bill with those of the senate mea sure. The house hill. Pierce explain ed, provided that quota restric tions would not be invoked until the visible supply of wheat , sur passed 1,027,000,000 bushels The Benate measure set the fig ure at 825,000,000 bushels. ulletin Fifteen young women living in the Salem YWCA dormitory were routed out into the street early . this morning by fire which broke out in the base ment of the F. W. Grand Sil ver store on - Liberty street. - Firemen had some difficulty In locating the blaze which ap parently was burning briskly and menacing the building in which. It ' started and . would have imperiled! those nearby if it had gotten headway. At 1:30 o'clock thla morning . it . ap peared to be under control. - Smoke penetrated Into the Woolworth store on State street as well as Into the YWCA and the Bligh hotel building. B P orgery tases ere I-- Ben jamin and Dunn'Also' i r ace unarges ; xjeavy' : - Merchants Seek to Have Money Returned From . Itinerant Pair While two suspected "whole sale forgers" arrested . in Salem Monday night were expediting the wheels xf Justice by waiving pre liminary hearing in justice court and being bound over to the grand jury, two .more cases involving fictitious check charges came to the attention of Salem police. ; The men bound over were Earl McDonald, alias William Parker, charged with uttering and pub lishing a forged bank check cash ed by C. D. Durham at Busick's store November 29; and Harvey Novotney, charged similarly in connection with a check cashed with Paul Block on the same date, They were being held in lieu of $5000 bail each. Recent Convict Is Held in California. Salem police were informed yes terday that Ban Benjamin, wanted here for allegedly passing about $300 worth of forged checks on Salem business men the day after he had been released from . the state penitentiary, is now under arrest in Shasta county, Callfor nia, with char g e s registered against him there. Local police have sent word thai he be held for them. Albert Dunn, the fourth alleged bad check operator, was paroled from the penitentiary in July, 1927, having been Bent up from Polk county for forgery, the rec ords show. Since then, according to the records, he has done time at McNeil's - Island tor ; automobile theft.. Here Dunn is charged with the endorsement of a check that he knew to be forged. He will be taken to Albany where, officers are informed, a forgery charge awaits him. On the Salem charge Dunn had a preliminary hearing in justice court yesterday and was bound over to the grand Jury. Failing to furnish bond of $500 he was held in Jail. Benjamin, the man held in Cali fornia," was released from the pen itentiary November 9, pMson rec ords indicate. He had been sent up from Klamath county on seven forgery counts of two years each All of the checks that. police said Benjamin passed in Salem Novem ber 10 were for 827.50. An effort was being made last (Turn to Page 2, Col. 7) Fehl Proceeclings Under Way Today i f MEDFORD, Nov. 30-iflVJL panel drawn from the rrmiar jury list will hear testimony in tne insanity hearing of Earl H. Fehl, former Jackson .'county judge, opening here tomorrow. Presiding Circuit Jnrl?A H n Norton said the functions of the jury in a case of thla kind YaA not been decided In Oregon, but tnat it would be called as a safe guard. The district attornev'n ' at said subpoenas had been issued for the deputy warden, chaplain and two guards of the state nri- son where Fehl previously served a term for ballot theft. . The COmnlaint was ate-nnri hv Fred Kelly, who will be repre sented by his brother, Attorney E. E. Kelly. J. Porter Neff was assigned as counsel for Fehl. NEW YORK, Nor. 80 -J?)- uiint r rank, Yale's captain and star back,, today was named as winner of the He Ism an memorial trophy, given annually to the piayer judged the year's out standing football star in the United States in a nationwide poll of i ports writers. . f -T - - PORTLAND, Not. 30-(ff)-Pab-lo Dano of Manila boomed a le thal right nppercut through the guard of Al Spina, tonight to win a scheduled 10-round bout by a knockout in the second round, Spina, who weighed 126 U to Dano's 120, had Just r isen from the floor after an eight- count knockdown. " Frank! Gained, Portland, won by a knockout in the second round from Baby Face Matheson, Los -Angeles, in the ' six-round semi-final. Each weighed 125 pounds. ' ' "'" ,"; SEATTLE, Not. U-VfyWf .Buxton, nara-aoeamg Victoria, a. C, southpaw 1 2 5-pounder, knock ed out Speedy Dado, 128, Los Angeles, in the second . round of a scheduled 10-round main event here tonlghl . ' mount; z n Late Sports Center ofcStirring w i ears -Ago is; pun, Aczive 1 111 ' " " : 1 - i -1V;,'.- . , ' -5 J V V . . .. , " ' -: . i . . . - I W'-J , i . Jonathan Bourne, jr., former Oregon the Oregon legislature from meeting and left this state without a senator in congress for more than a year back in 1897, plays sol itaire in Washington, D. C, while Sirs. Bourne looks on. The ex senator is 82. Associated Press photo. Green and Lewis Will Join Parley Labor Peace Meet at End, Subcommittees Are to Continue Effort WASHINGTON. Nov. 30. -)-John L. Lewis and William Green expect to step personally Into the labor peace negotiations when they are resumed Thursday. These arch enemies in the struggle between the AFL and Lewis' CIO expect to head sub committees i which will continue the .work) of the Joint-peace. con ference that recessed today. The conference outlined prin clpal issues between the two un ions under five headings and de cided to discuss them one by one, The CIO contention all work- erg in each large industry should (Turn to Page 2, CoL 4) Arbiters May Be Named by Tonight Identity of arbiters selected to represent., Associated. Restaurants of Salem', Inc., and the Salem Cul inary alliance in deciding on wages to be paid and working hours and conditions to be set up to iron oat the friction which has existed between the two organi zations will probably be made known today, State Labor Com missioner C. H. Gram- reported last night on his return from Portland. The two will then at tempt to agree on a third mem ber for the arbitration board. Neither group's representatives yesterday would Indicate their choices for arbiter. Both indicat ed it had been agreed the an nouncement should he ' made through Commissioner Gram. WPA Executive Reveals 1000 Jobs MEDFORD, Nov. 30.-(ff)-E. J, Griffith, state WPA administra tor, told a luncheon club today he had "been authorized to add 1,000 persons to WPA rolls, bringing the total enrollment to 12,000. Jackson county employes will be increased to 101 tomorrow. all working on the municipal air port. 1 Erb Named President of UO, Among Youngest in Country PORTLAND, Ore., Nov. SO-iff) -The state board of higher edu cation announced the appoint ment today of Dr. Donald M. Erb, 37-year-old! professor of econom ics at Stanford university, as president of the University of Oregon. J He will return about , April 1 to the Oregon institution, where he served six years as a faculty member, as its seventh nd youngest president. t He win succeed Dr. C. Valen tine Boyer; who took office in 1934 and resigned a few months ago because of 111 health. Dr. Boyer will ; re-assume his previ ous position as dean of the col lege of literature and arts and head of the department of Eng lish. .- v: " 5 :-' Dr. Erb took Ms bachelor , of science and master of science de grees at the University of Illi nois and his doctor of philoso phy from Harvard,. where he won the coveted Ricardo prize for outstanding work. , , Events :Here - :; senator and the man who kept Will Draft Setup For Horticulture Inspection Program to Be Outlined by Committee Meeting December 9 A 12-man citizens' committee to formulate an aerressive county horticultural inspection program was appointed by tne county court - yesterday - afternoon ana Thursday morning, December , set as time for its first meeting This action resulted from "adop tion by the county budget com mittee of a resolution calling for study Of the horticultural service, dormant since the death of In spector S. H. VanTrump, and for collaborating with the county court regarding, the appointment of a successor to the late inspec tor. The committee consists of J. O Farr, county Pomona 'grange master. Jefferson: George W. Potts, state Farm union presi dent. Jefferson; George - Tate resident. Stavton Canning com pahy; Robert E. Shinn, manager, Willamette Valley Cherry Grow ers association, Salem; Harry Hu gill, manager, Hubbard Coopera tive Fruit Growers association Adolph -Heater,' Sublimity straw (Turn to Page z, col. ) Portland Business Drops for Month PORTLAND,-Nov. 30.-(JP)-No- vember bank clearings of $130, 162,683, a 19 per cent drop from October, were 7 per cent more than November, 1936, and brought the total for the first 11 months of 1937 to 14 per cent above last year. Building permits dropped from $445,590 in October to S386.600 nearly $170,000 under November last year. - Foreign exports through Mon day totaled $2,052,883, a decline of $300,000 ' from October. - strike tieup in November, 1936 prevented a comparison with that month. Customs receipts gained $10, 000 over October, totaling $154,- 000. Wheat exports were 865,69 bushels compared with 1,126,462 in October. Lumber export reached 9,000,000 feet, against less than 3,000,000 feet last month. 7 , 1 He came to University of Ore gon in 1927 as assistant profes sor of economics, remaining two years. The senlr class of 1929 placed him first In a rating of faculty members. -. Following more study at Har vard, he returned to Oregon in 1930 as professor of economics. He was called to Stanford as as sociated professor of economics three years later, and .served as acting head of esonomics end so ciology departments in 1936-37 during the absence of Dr. Ber nard Haley. ' ' - v- During the last school year, he directed a government-sponsored surrey of the effects of the de gression en a California town. - 1 Dr. Erb married Roxane Cath erlne Stuart of Qulncy, HI, i 1923. They hare two ; children. "The state system of higher education, as .shown by unani mous action of the board, has the utmost confidence In - Dr. Erb,1 Chancellor Frederick M. Hunter (Turn to Page 2, CoL 2) Concession to J)ealMa)i Eliminating., VWrite-ups v 1 of Capital Structure V Said "Agreed .Upon Prudent Investment may 3e Basis; Willkie'a Memorandum Cited WASHINGTON, Not. 30.-iPr- Maj or concessions to the new deal power policy, and a series of com- -promise proposals, were advanced as the basis for an administration utilities "peace pact" by Wendell L. Willkie, president of Common wealth & Southern Corp., in his recent conference with President Roosevelt, it was learned authori tatively today. In a memorandum, Willkie In formed the president he believed 'satisfactory relationship" could be worked out "without injury to legitimate Investment and well within, the broad framework of your social objectives." On the question of property valuation a point long at con troversy between utility interests and the administration, and which is the basic factor in making rates for electric power the utility ex ecutive suggested atwo-point for mula, containing' concessions ef far-reaching significance: 1. He proposed that utilities should eliminate immediately from their capital structures all of the "write-ups" in property value which have heretofore been claimed by the federal trade com- -mission; , BeMade view 2. He recommended accept ance of the "prudent Investment" ; theory of valuation, as desired by the administration which , eon templates, as the federal power-' commission views it, .what was prudently, and honestly" InTested in physical property instead of . present method, which takes Into account the reproduction cost -new. - If Willkle's suggestion on "write-ups" were accepted by -other utilities, it would mean the : scaling down of the utility in- j -dustry's present capital structure of around $12,000,000,000 by al- -most 15 per cen. In its final report of 1935, the trade commission estimated .that in about 85 per cent of the in- ':.. dustry or 18 top holding i com- j.,' panies, 42 sub-holding com pan-" ies and 91 operating companies -there was around $1,491,000,000 iju ''write-ups. improperly, capital- t lzed intangibles and inflation in "' eluded in the capital assets." Other "clarifications," Willkie; said, are necessary "in order to establish a relationship - between the -government and u 1 1 1 ift 1 e a which will restore Investment confidence in the Industry' On the question of the Tennes see Valley authority and ether similar federal projects in the -(Turn to page 2, col. 8) 76 Traffic Death Toll in Portland PORTLAND, Nov. SO-nCThe close of the police fiscal year to night found 76 persons dead and approximately 2,500 injured for the second highest traffic toll in the city's history. r More than 80 per cent of the approximately 20,000 accidents j occurred at night. Victims rang- ed in age from two to 85 years. Of those killed, 51 were pedes trians." : -r -. " i .''.: . B A L L A D E of TODAv They'll hoist the old post office up onto skids and roll it up State street with consum mate ease; ! we'll bet there H be crowds of both young and old "kids" -wholl watch every movement we'll be among these. I KJ buys ana uses ' Christmas Seals ClUb , O I Shoppind m I tDavs Left ---- - - I-,,- Tr.frfwij-voVjcj -" a .