fiilfo&mifl sum . Weather Cloudy and cooler today becoming unsettled Son day Max. Temp. Friday M, Min. 89, iriver 8.2 feet, rain .21 Inch, south-south- Sunday Features . Comic section, sports sec tion nd many special features are included In the Sunday Statesman. Get your copy each week. west wind. POUNDQO 1651 EIGHTY-SEVENTH YEAR Salem, Oregon, Saturday Morning, December 18 J.937 Price 3c; Newsstands 5c No. 228 eMoo II II It Ay II to age-Hour Bill Senate Outside Water Rate Valid. Is anion Lamport Asks Board to Rescind Order, Avoid Action in Courts State Commissioner Has ... not Authority Over - City, Contended Threat ot court action in a pro test letter inspired the Salem wa ter commission last night to re quest City Attorney. Paul R.( Hen dricks to prepare a written opin ion as to whether or not its order adopted two weeks ago increas ing water' rates "to consumers out side the city was valid. The objector, Frederick S. Lamport, Ben Lomond park, ad vised the commission by letter that,the city had agreed with Pub lic Utilities Commissioner Frank C. McCellocb at the time it pur chased the water system in 1935 not to discriminate against cus tomers . outside the city in the matters of rates and character of service. Lamport asserted 100 bther water users had carried their' protest to him. . - "I trust, Lamport wroter, "that you will cancel the order that was entered and save us the the courts for relief." Opinion Obtained , From W C Winslow - ' ' Manager Cuyler VanPatten re called that City Attorney Hen dricks had ruled orally that the utilities commissioner had no jurisdiction over the city and had had no right to attempt to im pose any' restrictions on- the city at the time the water system was bought under' federal court de cree. ..- ' - . While the. commissioners agreed the city attorney by virtue of his "official capacity should be asked to rule on the validity of the .. utilities commissioner's ' at tempted intervention, they had before them last night an opinion prepared for Chairman E. B. Ga briel by W.C. Winslow, one of . the attorneys who represented the city. Jn the - condemnation pro ceedings, j After -citing numerous ?court de cisions and the Oregon statute in point, Winslow concluded: "We do not believe it could be contended successfully by the pub lic utilities commissioner, or by anyone else, that th citizens of ' the city of Salem are required to bond themselves for a million or so dollars to go to the mountains to acquire a supply of mountain water, and then furnish It, at the same rate they furnish it to the users. within the city of Sa lem, to people outside the city limits who bear no part of this bonded Indebtedness other than as they may pay it through their rates." Courts Ilave Ruled " ' City Has Authority ' " - Winslow's opinion also de clared the courts had ruled that . it was within a city's authority ' to establish varying water rates, ! such as within and without the - city, as long as there'was no dis crimination as to customers with (Turn to Page 2, Col. 3) 0! dditicc . . in the Netcs . .NEW YORK, Dec. 17-3l)-Lor-cnzo B. Brown, assistant post master of Jamaica, said today be would like the public' to . know he made a mistake two years ago when he buried a man In the Brown family plot in Springfield cemetery in the belief it was his brother, Clarence. Clarence, it appears, turned up alive last Friday to the astonish inent of Lorenzo who had spent $400 on the stranger's funeral. However, he said, be won't dis turb the stranger's rest. Incidentally, the real Clarence has vanished again. Lorenzo said it's a habit he acquired when he was about 17. , , TALLAHASSEE, Fla., Dec. 17 -PJ-It's up to the supreme court now whether the brush salesman, the book agent, the boys working their way through college may vunch doorbells in residential New Smyrna .beach. - ' The city has a law which says they mustn't. Horace prior, brush salesman did, and - was convicted in municipal court. Al fred A. Green. Prior's attorney, said the statute is ' unconstitu LesalOii tional. He appealed. Passes Arany Airport fi id Is Backed by Cif.mittee; Decision - Due Monday Higher Bid, Qualifications Considered (Chairman Says; Climax of Several Weeks': Negotiations in Sight It will be the recommendation of the airport committee of the city council to that body Monday night, December 20, that Leo Arany be given the lease of the Salem municipal airport, according to information released yesterday by the committee's chairman, Alderman E. B. Perrine and asso ciate members L. G. LeGarie and J. H. Nicholson.. O "After due consideration to the Bearcat Acquires Revenge on Angel Score 36-25 With Ace of Mt. Angel Victory Here Held to Lone Goal MT. ANGEL. Dec. 17 Wil lamette's galloping Bearcat bas keteers snapped back into win ning form tonight,; walloping Mount Angel college, 36 to 25, on the Angel floor. The entire squad of 1 3 men saw action as Mentor Howard ' Maple's charges moved into the lead at the out set, and held it all the way. Big Bill Anton snapped into his best form of the season, and although garnering only six points, was a tower of strength under the backboards and on all around defensive play. With Walt Weaver likewise doing yeoman work on defense, the .Bearcats left their point-making up to Billy Beard, and the fleet forward came up with five field goals and a free throw, for 11 points. It was sweet revenge for the three-point defeat by the Angels Wednesday night, but a different Willamette ball club, plainly (Turn to Page 2, Col. 2) Hawkins Receives Penalty of Death MOUNT VERNON, Wash., Dec. 17-;p)-CaIraly, with a slight, fix ed smile, Clifford Hawkins. 25- year-old farmhand, today heard a superior court jury return two verdicts of first-degree murder against him, each carrying a mandatory death penalty, for shooting Earnest and Floyd Grimm, brothers. The 10 men and two women deliberated only an hour before returning the verdicts of convic tion. ' The state alleged Hawkins shot the Grimm brothers when they objected to his intimacies w i t h their 13-year-old sister, Edith, who was a star witness against him. Hawkins claimed he shot the two youths la self defense, bury ing their bodies on the farm. : . OSC Holiday . Starts CORVALLIS, DeC 17 - UP) - Term ' examinations ended and Christmas vacations ; began for Oregon State college students to day. The fall term enrollment of 4068 students was the largest in the school's history. City Hall for Unemployment Sig nup. City councilmen were being polled yesterday by D. D. Dotson, i office manager of the Oregon state employment service, in re gard to obtaining the use of the council chambers for a period of from two weeks to a month for the emergency created by the unemployment compensation law. Under this law, according to Mr. Dotson, ' It will be necessary to register and make out applications for from 2000 to 3000 unem ployed whose ptevioua employers have been, paying into the unem ployment fund. -According to Manager Dotson a formal petition will be present ed to the city council Monday night, asking for the use of the council chambers. He indicated that the registration and filing of applications waa a community af fair and that the council should be willing to turn over Its cham bers. ' ! Consensus of opinion of coun cilmen Interviewed yesterday was Recom mitted, Fam Meam re facts that Leo Arany has just as good recommendations for, the job as has Lee Eyerly, that his bid is twice that of Eyerly's and that Eyerly at one time during negotiations with the city council implied that he didn't wish the lease on the airport, the commit tee decided to recommend to the council that it accept Arany's bid for the lease of the airport," said Committee Chairman E. B. Per rine yesterday. ; - (Turn to Page 2, Col. 1) Verd Sehrimk Is Called Suddenly Monmouth Marshal , Since 1930 Served Overseas in Aviation FoiqeftQ1 MONMOUTH, Dec. 17 ' Verd Shrunk, 38, city marshal of Monmouth and Polk county con stable, died today at the Veter an's hospital in Portland. Ten days ago he underwent an opera tion for gall bladder trouble and was thought to be recovering. November 20, 1937," Schrunk figured in headlines when he and Glenn Halliday, fire marshal, shot fatally a burglar1-who had broken into the Halliday garage here and then attempted to es cape, after pointing a pistol at Schrunk and his wife. The bur glar turned out to be Francis Russell Bickfordy.22, j of Salem. The fatal shooting occurred in front of the city hall here, . Schrunk was born in Danbur- ry, Iowa, January 2, 1899, and came to Oregon with his parents when he was 13. He attended high school in Independence where he was outstanding in basketball and baseball. He en (Turn to Page 2, Col. 7) NLRB Must Alter Program, Is Held TOLEDO, Dec. 17 -(P)-A. D. Chisholm, Portland, president of the Industrial Employes union. said today criticism and congress ional action might force the Na tional Labor Relations hoard to modify its program. Continued opposition to the NLRB and rival unions has been favored by the majority of 400 IEU employes of the C. D. Johnson Lumber company, Chisholm said. An NLRB hearing of company unionism charges against the IEU and Johnson company was inter rupted when John Babe, NLRB attorney, was called to Washing' ton. Attorneyship Issues to the effect that there was ade quate room in the old high school building, - which holds the execu tive offices of the bureau, for the work necessary. Council members indicated they did not feel they should embarrass officials in the city halt with the noise and eon fusion that would ; ensue if the chambers were turned over to such. a project : .While Alderman E. C. Good- enough yesterday did not either affirm or deny rumors that he intended to resign from the conn cil on January a In order to run for city attorney, several members of the council expressed the opln ion that he was definitely a can didate and had definite support. It is the feeling that a caucus ot the council will he held during the afternoon preceding the form at meeting of the council, and if Alderman Goodenough has the necessary support he will resign and his successor be elected im (Turn to Page 2, CoL 6), Setback Given New Deal but Margin Small Means Death of Efforts Warns Rayburn When " Ballot Imminent Normal Granary Bill Is Sent for Conference With House Group WASHINGTON, Dec. 17. -()- The combined, house votes of southern democrats and northern republicans disrupted President Roosevelt's special session pro gram tonight by sending back to committee the bill to establish minimum wage and maximum hour requirements for interstate industry. The vote, 216 to 198, brought the career of that battle-scarred fflfcasure to an abrupt, if possibly temporary, halt and evoked a tri umphant roar of applause from the southern bloc, members of which anxiously kept tab of the balloting as it progressed. Technically, the measure was sent back to the labor committee for such revisions as would bring it in line with the views of the house, but actually, there were few who doubted that the bill was dead for many months to come. Administration leaders, though confident to the last minute of (Turn to Paso 2. Col. 1) - t- - ... ..:" - Shortage Claimed In Prison Account BOISE. Idaho, Dec,-17 -Up)- An audit of Idaho prison records. demanded by Warden. Willian H. Gess under fire since the sui cide leap of. triple-killer Douglas Van Vlack five hours before his scheduled execution -disclosed a $1,621 shortage, a bureau of pub lic accounts examiner, Karl .Ev ans, reported today. Evans said the - audit covered records from March 23, 1937. when Gess was appointed, to the present time." Gess, - who denied responsibil ity,- had previously said be was "not satisfied with the condition of records at the prison." Meanwhile, Atty, Gen. J. W. Taylor declared he was "prepar ing to apply to the state supreme court for an alternative writ of mandate to remove Gess." The warden was ordered oust ed by the prison board four days ago," out ne reiusea to quit. I . ; Old Hops' Owners Must Sign up for Diversion, Warned Hops which are to be divert ed from normal use tinder the Pacific Coast Hop, Stabiliza- -tion corporation's recently com pleted agreement with the de partment of agriculture mast be acquired by the corporation by December 81, according? to word received Friday night by William S. Walton, local di rector. Hop growers who are al ready signed wp with the cor poration will receive the prop er blanks, Mr. Walton ex plained," but growers who are not, bat who have bops of 1934 or prior years they -wish to dispose of tinder this plan are advised to obtain blanks without delay. - Tbese blanks may be ob tained from Mr. Walton at the Ladd A Bosh bank, from C W. Paulas at the T. A. IJvesley A Co. office or from H. W. An-, 'derson at Eugene. , The government win pay $7. a bale for the hops to be divert ed from normal nse. Otto W. Metschan Dies at Portland PORTLAND, Dee. 17.-(P)-Otto W. Metschan, 59, native Oregon ian and hotel executive, died to day after seven years of illness. One of five sons of Phil Met schan, sr., founder ot the Imperial hotel, Otto Metschan survived an attack by Piute Indians on Canyon City settlers when three weeks old. ...... Surviving are his widow, a son, four brothers and two sisters.' Read Riot Act Martin Advice On Labor War Goon Government' Must Be Combatted Avers State Executive Inman-Poulsen Cargo Is Shipped; Boycott Is Effective, Claim PORTLAND, Dec. 17-yP)-Lay-ing aside his typewritten text to "deliver a few shot s,' Gov. Charles Martin issued fighting orders to the combat troops of law and order in an address be fore a joint meeting of sheriffs and district attorneys of .Oregon today. - "These gangs that riot and de stroy property," he s n a p p e d, "Don't let 'them surround your officers and render them help less. Stand off at a respectful distance and read the riot act to them in a loud, clear voice. They'll take it In, and the reading of the riot act puts them, all outside the law. Then order them, in the name of the state of Oregon, to disperse. If they don't, then go into 'em and beat hell! out of 'em," The governor said it was nec essary to combat a "super-gov-ernnient of gtons and gangsters" endeavoring to destroy the cap italistic system, set up production for use and "put all the little manufacturers out of business." "These gangster leaders are brutal and selfish in spirit, and their hands are bloody as those of the pirates of old. They are making many fine workmen walk kthe jrtank . . . . PORTLAND, Dec. 17-Up)-De- spite the opening of two saw mills this week, the approach of Christmas found little optimism in Oregon in regard to a possi ble HtreaTta the protracted AFL- CIO jurisdictional dispute which tied up local mills in August. " The Inman-Poulsen plant, which re-opened Monday, shipped its first cargo today aboard the steamer Andreas, bound for Ja pan. Officials said the AFL boy cott has proven effective, result ing in a cancellation of a mil lion board feet in orders received prior to the victory of the CIO in a plant election last week. The mill,, normally employing 600, increased -- Its opening crew to. 184 men today. 7 The West Oregon mill operat ed for its second day, with a full crew of S75 under the CIO.' It concentrated on fuel production.'? Second American Note Sent Japan TOKYO, Dec. 1 8-( Saturday )- (JP)-The Japanese foreign office disclosed . today that- U. S. Am bassador 'Joseph C Grew had de livered a second American note in connection ' with 2 the sinking of the gunboat Panay. : f The nature of the new repre sentations was not ' made known but they, were reliably understood to concern reports that the Yang tze river patrol ship had been machine gunned by' Japanese launches ' before it sank under the pounding of aerial bombs last Sunday, . The note also waa believed to nave; carried, a - strong protest against the reported boarding of the Panay.' by Japanese officers before 'it went ' down about 20 miles upriver from Nanking. loyalist Annies Surround Teruel .' r MADRID, Dec. lg-(Saturday) -(ffJ-The government today an nounced its troops had surround ed and laid siege to Teruel, lo cal point ot a; daring ' drive in bitter weather against heavily en trenched insurgents. Teruel, in eastern Spain 135 miles east of here and 70 miles northwest of Valencia, marks the tip of an insurgent wedge driven down toward the Mediterranean coast In an effort to cut off rat alonia : from other government held territory. The government hailed accom plishment as a great victory for troops who fought through snow and sub-freezing temperature. - Buchanan Benton Flood Spokesman CORVALLIS. Dec. 17HUPV- Claude r Buchanan, : president of the south ' Benton district ' im provement association, will act as spokesman for Benton flood control groups at a hearing of the Willamette flood control pro ject at Salem Monday. . Federal engineers will - hear reasons for the project. Resigns as Coach Athletic Board TTfpnsinsniiijjiiinjii ( ) vyr'a 1 akilMviai PRINCE G. Alcatraz Escapes Believed Perished But Search la Continued; ? Possibility of Help From Outside Slim - SAN FRANCISCO, Dec. 11-JP) The shadow of uncertainty still hovered tonight over Alcatraz Is land's reputation as an "escape proof" prison but Warden James A. Johnston concluded that, the two desperadoes who vanished from It "yesterday '"escaped' only in death. Johnston conceded there still was a "possibility" that the pris oners, Ralph Roe, 29,' Duncan, Okla., robber, and Theodore Cole, 25;, Stroud, Okla., kidnaper, re mained in. hiding on the 12-acre rock in San Francisco bay. The probabilities, he said, how ever, indicated they left the is land; that they had no outside help and that they perished in the treacherous tides, which were higher and more violent than usual because of flood waters from inland rivers. . 'TheyTad only one chance In a thousand, if they took to the water,' said searching author ities. But the tiny speck of doubt sent coast, guard and police boats ont into the bay again to search for traces of the men. Heavy po lice detachments . patrolled all possible landing places. 'I doubt if even the most pow erful swimmers could have sur vived those currents,' said John ston. ".And neither of the pris oners was physically powerful. Even if they once had been good swimmers they were out of pracr tice." ' .- " ' Johnston said the possibility also existed that confederates in a boat Came out to meet the prisoners and escaped detection in the heavy fog, but that the likelihood was remote. John Hamilton Arrive Monday for GOP Meet PORTLAND, Dec. 17-(P)-Ralph E. Williams, republican national committeeman; said: today John D. M. Hamilton, committee chair man, would arrive here at 5:30 p.m., Monday to attend a dinner meeting of the Oregon Republican club. .- ' :: Bonneville Officials Report Market for all Power Sure Markets are already in' sight for all of the power which gener ators now installed at Bonneville dam will produce, it was stated by! Judge John C. Fischer, gen eral counsel for the Bonneville administration. In Salem yester day with Isaac Comeaux, chief financial advisor and accountant, who had jnst that day taken up his new duties. - It is tor this reason that Ad ministrator J. D. Ross is asking for Immediate authority for in stallation of additional genera tors, a request in which the war department is expected , to con cur. Judge 'Fischer said. He and Mr, Comeaux were in Salem In the course of a preliminary sur vey of the power situation In the Willamette valley. Here they con ferred,with Herman Latky, who la counsel for a number of pub lic ! utility districts in the state of Washington. ' :; -.,- .,"--Administrator Ross has also been in communication . with the secretary of the Interior, request ing an appropriation of $10,0 00,- of Web foots; Accepts Proffer .3 - J, : V'V GALLISON Eye Operation Is Apparent Success Chahina Sees but Extent of Recovery Unsure; Donor Gets Notice NEW ORLEANS, Dec. 17-JP)-In a hushed Charity hospital ward, Dr, George Haik lifted the bandage from the surgically re modeled eye of Frank Chabina, Jr., 19, today and held up two fingers. ;. Quietly be asked: "How many fingers do you see!" The figure on the bed sUrred as the roomful of anxious doctors, nurses, reporters and cameramen craned forward. "Two!" came the answer. ' A murmer, like applause, swept the room. I -Dr. Haik half " smiled with pleasure and held up three fin gers. "How many?" he asked. "Three," was thereply . Dr. Haik was calm. " "There is some progress," he remarked. "Now, only time can tell just how successful this case will be." A week and a day ago surgeons cut a portion ot the cornea from (Turn to Page 2, CoL 6) Dog Lovers Won't Allow Cell Trial Many people in Oregon do not believe that a dog should be the first victim of the state's new lethal gas chamber now being in stalled in the penitentiary here, Judging from letters arriving in Salem Friday. . ' It was announced earlier . in the week that a dog would be used in trying out the new lethal gas chamber. - Officials indicated that in view of the many protests received a rat might be substituted for a dog.: t - , . : - V ; . . Installation of the chamber is in progress. . z Cleaning Rifle Fatal .r PORTLAND, Dec. 17-P)-Wounded yesterday as he cleaned a rifle at his Vernonia home, Er nest Marsh, 24, died today. 000.; to $12,000,000 be made available for constructing trans mission lines to various districts in Oregon. Senator Steiwer baa been active in supporting this re quest, but it must be taken up in congress ' in connection with the federal budget, which means it will not come up until early in the regular session of .congress. Asked ' concerning rates, the Bonneville - administration ' offi cials pointed out that this issue was necessarily awaiting the al location of . Bonneville costs as between navigation and power. but' recalled a statement by Ad ministrator Ross that the rate structure would be 'a simple one that any child could understand.' , Repeating his own quotation of Administrator Ross in a recent address, Judge Fischer, said: "Bonneville, dam is not a mag ic talisman that automatically brings cheap electricity, the ad ministrator warned.. The whole sale cost of power at the' gates of your city is ' only one-eighth (Turn to Page 2, CoL S) , Action to Fill Vacancy Waits January Meet I--. Retires f'in Interests of UO" and Football Says Brief Statement Six-Year j Hegime at End;" Criticism of Recent Showing Recalled EUGENE, Ore., Dec. 17-0iP)-Th athletic board of the University of Oregon accepted the resignation tonight of i Prince G. Callison as head football coach, a position he had held far the past six years. His resignation, handed to Dr. C. V. Boyer, university president and chairman of the board, said, simply; "In the interestsrof the University of Oregon and Oregon football I hereby tender my resig nation, my services to terminate at the end of the present fiscal year , (Jan. 30, !l93 8) in accordance with the notification of my ap-, pointment.' Callison -declined to comment further but indicated he might make a statement tomorrow. He refused art; invitation to appear before the board tonight to dis cuss the matter further. - Played in Kose Bowl Contest of 1019 A member of the Oregon Rose Bowl team! of 1919, he coached , the Medford, Ore., high school team for- five vears hefnra -iein- ing the university athletic staff. He served three years as freshman coach before being appointed to his pre&ent position. Critlcismj of his record was voiced this I fall by students, who formed a CCCC (Can Coach Calli son Club) after the close of con ference play. The Oregon squad won four games and lost six. The board postponed actio toward selection of a successor. " untiLJU. January meeting. Art Center Plan Has Good Sunnort Enthusiastic support for the Federal Art Center project pro posed for Salem was in evidence at the meeting of the Salem Art Center section at the cltyi lj- Drary Friday night. C. A. Kells ; was named to head a. finance, committee i which will start ' campaign soon after the first i the year. In this connection a "Mozart ball" was considered to assist in raising funds. It weuld be a costume ball, but firther details were not determined; , Dr. Burtj Brown Barker, state chairman.: and Dr. Danysh. J re gional director of the art center project spoke at the meeting, as well as C. P. Bishop, Dr. Geergt H. Swift, Lyle P. Bartholomew, R. J. Hendricks, Mrs. T. A. Lives ley, Mrs. TjaMoine R. Clark and Miss Emilx Cromley of Pelk county. Dr. B. F. Pound pre sided.,,, j . - . : i Portland Night Warm PORTLAND, Dec. 17-;p)-ile-cember went summerish last night when ia. minimum tempera ture of 63 ! degrees, highest ; for the month since 1933 and warm er than many August evenings, was recorded. - - t . 'j . B ALL AD E of TOD Ay! ' !By B. a i:iOh q be a football coach and hear the rooters shout " one's .name; to live a lfe above : reproach and soar o Sunday sport page fame; to v cash each : month a big pay- ' check, work just a few month in the' fall and then, to set .it in the neck because soma gridster muffed the ball. U , , .v.;,.. j , - .' (This motto tl picture not based on any. actual happen ings,) j' . shuus and uses Christmas Seals 6 Shoppinq Days Lcftt G1R-L ' f4k SCOOT