v- Art Appreciation I V
... Hundreds of sets of the
famous paintings offered by
the National Committee fop
Art Appreciation are being
purchased by Statesman
readers.
. Weather
: lUin, somewhat warmer
today and Monday souther
iy wind; Max. Temp. Katnr
day 42, Min. 31, moderate
southerly wind, cloudy.
POUNDBO
1651
EICUTY-SK V ENTH YEAR
Salem, Oregon, Sunday Morning, December 26, 1937
Price 3c; Newsstands 5c
No. 235
unite
okvo
I II II II I Y XV L I I I I I I I I I I I I I I
- v
7
Seven Buffalo
Aldermen Are
Under Arrest
Graft Extends Back for
Years, Is Charge of
Treasurer Hoban ,
Perjury, Forgery, Other
Charges Are Faeed by
16; Probe Widens
BUFFALO, N. Y., Dec. 2 5-(JP)-Adminlstrators
of New York's
second largest city today awaited
fiovernor Lehman's decision on
a plan to widen a municipal af
fairs inquiry which already has
placed nearly half the city coun
cil under arrest..
After an eight-week investiga
tion, a grand jury asked appoint
ment of a special prosecutor and
as extraordinary grand Jury to
carry on the inquiry which they
descr Cad as a "gigantic task."
The jury's recommendation is be
ing considered by the governor.:
Before adjourning the grand
jury showed its grim holiday
mood- by presenting 16 indict
ments resulting in the arrest of
seven of the city's "15 council-.
men, a former state senator, a
councilman-elect, a city paymas
ter and six former city employes
on felony counts. The indict-
ments included charges of per
jury, forgery or obtaining city
funds through fraudulent claims.
The grand jury's indictments
slashed through party lines by
naming four democratic and
three republican councilmen.
Much of the jury's-invesliga-J
tion was based on information
brought out in public hearings by
a city council committee under
direction of the committee's vig
orous counsel. Frank G. Raichle.
By a paradox the jury almost
destroyed the councilmanic com
mittee by indicating two of Ua
five members. CounciJmen George
J. Youag-Aftd,. Anthony FV Proplk
resigned from the- committee after-
their arrest. i
With only three members left
the committee announced it
would prepare a final report and,
recess for the year. .leaving it jip
to the incoming council on Jan
uary 1 to appoint a new body to;
carry on the work." j
Ralchle's star witness before
the committee was City Treasj
James D. Hoban who testified,
"The city audit system is rot-j
ten ... Stealing has been going
on for 57 years .... I could
walk out of the city hall and
take every cent of the city's $8-
000,000 in cash with me any
time . . . . The temptation the
present system affords employes
should be removed." j
Patriot Guard to j
Boycott Japanese
' V I
NEW YORK, Dec. 25-(!p)-Capi;
Edward Page Gaston, national
commander of the patriot guard,
said today a move to embargo
Japanese products would b
launched at a conference of the
national maritime union in San
Francisco on January 17. j
He said a "drastic policy" was
expected to be adopted at the con?
ference, declaring that "both Wil4
liam Green and John L.. Lewis are
In favor of strong action by thelf
powerful unions." , I
As head of the non-political pat
riot guard, which he said enlisted
the support of more than 100
U. S. army officers, Captain Gas
ton said his organization was "out
to bankrupt Japan If it does not
agree to early arbitration in
China. j
"We are pointing out to labor
leaders that Japanese factory
workers receive as low as two
cents an hour.' Imported cooliei-
made products keep many thour
sands of American workers idle,"
he said. ., !
Daughter Queried
In Shooting Case
TOUNGSTOWN. O.. Dee. 25-
(iip-Pros. Paul J. Regan Trum
bull county said tonight that Miss
Louise Campbell, 28, was being
detained In Jail at ".Warren, 0
while his office Investigated the
shooting of her mother, Mrs. Cor
delta Campbell, , 5 5, at a Christ
mas party last night. I
Mrs. Campbell was in critical
condition at a Youngstown hos
pital with a bullet wound in the
abdomen.. County Secret , Service
Officer. Joseph Luarde said Mrs;
Campbell . apparently was shot
accidentally, when she attempted
to take the gun, from her daugh
ter. : i!v -vr-; - J-
"Four guests at the Campbell
home said the shooting was acci
dental, but there are some things
about it which need investiga
tion," Regan said. I
The prosecutor said Miss Camp
bell produced a gun after some
discussion with her mother about
uu a har car to take a ride. :l
Tragedies
Weather Here
To Moderate;
Rain Forecast
No Serious Accidents in
Salem Region; Scores
Occur in Portland
Little Snow Here Though
Hills Covered; East
Oregon Blanketed
Rain and warmer weather were
forecast for today following a
Christmas day which caused Sa
lem residents to shiver although
the official thermometer revealed
that the freezing point was not
reached at any time. A driving
wind had much to do with the
apparent frigidity. Minimum for
the day was 34 degrees.;
Warmer temperature had, in
fact, already put lu its appear
ance last night, with the thermo
meter standing at 10 o'clock at
42, highest point for the day.
Persons who were hoping for
a "white Christmas" were either
disappointed or easily satisfied in
Salem, for just barely enough
snow to whiten the ground ap
peared on the upper levels; snow
fell but did not stay downtown.
On hills near Salem snow fell in
sufficient Quantities to remain all
day, and it reached several inches
in depth in some places a few
miles east of the city.
In contrast to other points i .
the northwest which had numer
ous accidents, none were reported
for Christmas day eithejL to city
or state police up to late Saturday
night.
PORTLAND, Dec. 25 - (P) -More
than 200 automobile mis
haps in less than 10 hours marked
Christmas eve traffic on slippery,
snow crusted streets.
The most dangerous streets
Turn to Page 2, Col. 5)
Auckland Reached
By Samoa Clipper
Southern Terminus of new
Air Line Is Attained
on First Flight
AUCKLAND, N. Z., Dec. 25.-(Sunday)-(;P)-The
Samoan Clip
per landed here today at 3:57
p. m. (11:27 p. m. EST), complet
ing the last phase of its flight
from Honolulu to the southern ter
minus of a new ocean air line.
. The giant Pan American Air
ways flying boat left Pago Pago
today at 4:50 a. m. (11:20 a. m.
EST). Capt. Edwin C. Musick and
the crew of seven logged 1,810
miles in 12 hours, seven minutes.
PAGO PAGO, American Samoa,
Dec. 25.-;p)-The Samoan Clipper
sailed today through tropical Pa
cific skies on the last phase of its
flight from Honolulu to Auckland,
N. Z., southern terminus of a new
ocean air line.
Leaving Pago Pago at dawn, the
plane bearing Capt. Edwin C. Mu-
slck and seven other Pan Ameri
can Airways fliers had the pros
pect of good weather for the
806-mile hop. j
Next Wednesday the clipper
will leave Ancklahd for Honolulu
with mail and express to inaugu
rate the new service between New
Zealand and the United States.
Soon thereafter - British Imperial
Airways will establish a line be
tween Auckland and Sydney, Aus
tralia, 1,(00 miles.
Big Navy Advocates Prepare
For Battle in 1938 Session
By KIRKE L. SIMPSON
WASHINGTON, Dec. 25.-(P-
E vents are shaping to put "bis
navy" advocates, both in and out
of congress,' In a . poaitlon they
have not known since the end of
the World .war. Indications are
that navy- rebuilding -will be a
major Item of debate In the reg
ular session of congress. . - '
Administration reluctance to
disclose In advance specific plans
it may be contemplating for new
naval construction can be explain
ed la part by apprehension that
protracted public debate of the
matter would arouse peace organ
izations to new activity. It might
stimulate support of the Ludlow
war-referendum resolution, vig
orously opposed by President
Roosevelt.
The naval construction question
probablywill come up as a move
to meet the business recession.
The Idea behind it la to divert re
lief outlays to an undisclosed ex
Mar
Man Who Mobilized United Stated
Greatest Army
7 V m"
fv ; " . I: s 0
y
NEWTON D. BAKER
o
Spanish Foes Are
Locked in Combat
Hand-to-Hahd Fighting Is
Marked on Christmas
Day Near Teruel
HENDAYE, Franc o-Spanish
Frontier, Dec. 25.-jT1)-Dawn of
Christmas morning found insur
gent and government troops in
bloody hand-to-hand combat In
the hills northwest of Teruel.
Squadrons of airplanes fought
indecisive duels above soldiers
who clashed with bayonets and
grenades in the heavy snow and
stinging cold.
Most government troops, who
had participated in the swift drive
through a blizzard to recapture
Teruel, had left that city to meet
the insurgent counter-offensive.
Within Teruel, barricaded be
hind thick walls Of medieval ma
sonry in an old quarter, a few hun
(Turn to Page 2, Col. 3)
Quarter Million
In Jewels Taken
LUTON, England. Dec. 2o-(P)-Jewels
valued at $250,000 were
stolen from the home of Sir Felix
Cassel while his guests danced at
a Christmas eve party, it was
learned tonight.
The thieves entered the house
through an upstairs window and
ransacked the guests bedrooms.
The robbery was the largest of
Its kind in recent years and was
regarded by police as the work of
a well-organized gang thoroughly
familiar with the layout of Sir
Felix estates afld mansion.
The missing gems included val
uable pearl "necklaces and neck
laces of rubies and diamonds.
Some of the jewels were under
stood to belong to Lady Helen
Cassel, a sister of the Earl of
Verulam.
tent from other work-relief pro
jects to naval construction either
of combat or auxiliary craft be
cause that course would give lag
gins heavy Industry and f unem
ployment a quick recovery sum
Ulus. . V-r.... v; : v';
President Roosevelt's letter to
Chairman Cartwright of the house
roads committee over, congression
al opposition to reducing highway
appropriations in an' effort to ap
proach a budget balance is sig
nificant. It deals with job making
"relativity."- , ;
"If I have to get the budget
down to a certain figure, obvious
ly, I must eliminate the proposed
expenditures which ; provide the
least work and favor : those ex
penditures which give the most
work," the president said.
Naval and other ship building,
one group argues, falls within this
rule.
The aspect of any proposal to
, (Turn to Page. 2. CoL 8)
Christmas Day
Called at Age 66
War Leader Dies
Of Heart Attack
Newton D. Baker Inactive
in Public Affairs for
Last Several Years
CLEVELAND, Dec 25.-p)-Newton-
D. Baker, who as secre
tary of war mobilized the greatest
army in the history of his coun
try, died today after a heart at
tack. The short, eloquent statesman
who served in the World war cab
inet of President Wilson, had
been confined to his bed since
shortly after his 66th birthday De
cember 3. He was first stricken
several months ago in Syracuse,
N. Y.
He recovered from this attack
and resumed some of his law prac
tice here. As counsel for a num
ber of utilities he recently appear
ed in court at Chattanooga, Tenn.,
in a suit involving the utilities and
the Tennessee valley authority.
In the later years of his life he
had withdrawn gradually from the
multiplicity of interests which he
cultivated after leaving public
service, living quietly at his home
here and visiting his law office
frequently.
Last year he resigned as chair
man of the Cuyahoga county
(Cleveland) democratic central
committee, a position he had held
for 26 years. He said then "it's up
to us older men to give the young
fellows their chance."
Baker is survived by his widow;
one son, Newton D. Baker, 3rd;
two daughters, Mrs. Margaret
Wright of St. Louis, and Mrs.
Elizabeth McGean of Cleveland,
and five grandchildren.
Members of the family said he
made his last visit.to his law of
fice December 3, his birthday.
Lumber Firm Tug
Cut Loose; Labor
Trouble Involved
.TOLEDO, Dec. 2iPr-'rh9 C.
D. Johnson Lumber company tug
Go-Getter was floated from Ya
quina bay Udeflats today, state
police sergeant W. J. Mulkey
said. The boat, with two lighters
and 500,000 board feet of lum
ber, was cut loose from moorage
beside the steamer Anna Schafer
Thursday night . - .
? R. P. Richardson, mill super
intendent, said the lighters would
be refloated at high tide Tues
day. . The . vessels, Mulkey said he
believed, were cut loose in con
nection with a labor jurisdiction
al struggle.
General Motors
Secretary Dies
DETROIT, Dec. 25-(P)-Thomas
S. Merrill, 59, secretary of Gen
eral Motors corporation for - the
last 21 years, died here today fol'
lowing a five-day Illness.
He was stricken with pneumo
nia last Monday, Members of the
family said a blood clot developed
on his brain.
Over 230 Are
Day's Victims;
Causes Varied
Family of Five Snuffed
out When Oil Heater
in Home Explodes
Late Shoppers, Children
Enjoying new Toys,
Traffic Victims
(By the Associated Press)
Violent death shackled tragedy
onto the Christmas scene of scores
of families across the nation to
day.
With more than 230 reported
killed, the toll mounted hourly
fatal crashes on streets and high
ways, shootings, train wrecks; and
flaming death in the. night came
to five members of a family gath
ering at Auburn, Me., when an
oil heater exploded and destroyed
a cottage. Two of the victims.
trapped as they slept, were little
girls.
Frosted windshields cost the
lives of three persons in a head-on
auto crash at Fort Dodge, la., and
a railroad crossing collision near
Danville, 111., resulted In sudden
death to? Fred Carter, 52, Gates,
Ind., coal mine operator, whose
car was hit by a Wabash railroad
freight train.
Illinois reported 25 Yuletide
deaths, Pennsylvania 18, Califor
nia 15, Maryland 14 and Ohio 16.
A collision between a 10-car
mail and express train and an 11-
car passenger train at Hopkins
ville, Ky., caused Injuries to 25
persons, u,
; Santa- laua . meant - death to
Jimmie. Maloney, aged three, In
Lancaster, S. C. Toddling across a
street to display his Christmas
gifts to neighbors, he was struck
down by a car and instantly killed.
In Winchester, Va., James Cor
bin, 14, met violent death when
struck down as he rode on a shiny
new bicycle he had just received
for Christmas.
In Weston, Mo., a quarrel
around the family Christmas tree
ended in swift tragedy when a
(Turn to Page 2, Col. 7) )
EVEN FLOODS CAN'T KEEP
a.
'a
'! I
f V4 f-" s
1
i j , i
K if?.:'
' V , I -
Recent heavy rains and vrindstorma, which tmed Downievffle. CaL. Into m. erttaMe lake, failed to hhv
der SanU Clans, who appeared to bring cheer to the children of the stricken Sierra cvrnnutj V.
toshowsBantawith JohTsolus (left), George Solo and their sister, Betty.of PownleTOle. Note bow
Betty herself looks like one of the Christmas dolls. UN photo.
Navy
lese
Puts Blockade
300 Americans in City;
US Will Soon Reopen
Nanking Embassy
Hangchow Fall Conceded
by Chinese Who Say
City Is in Ruins
SHANGHAI, Dec. 26-(Sunday)
-P)-The Japanese navy an
nounced today that a blockade
had been thrown around the in
dustrial city of Tsingtao, where
three United States warcraft were
standing by to evacuate 300
Americans.
Japanese land forces pushing
forward into north China pre
viously had cut "off communica
tions between Tsinanfu, Shantung
province capital, and Tsingtao,
which is on the coast 390 miles
north of Shanghai.
With the Japanese widening
their war fronts both in north
and south China, there was little
in the orient to mark the Christ
mas message of peace on earth.
The navy announcement said
the blockade was directed at Chi
nese ships only and that foreign
shipping would not be affected.
The steamer ShJiking, which
left Tsingtao before the blockade
was established, arrived in Shang
hai with a number of foreign
refugees, including 15 Americans.
Half of Chinese
Population Gone
They said approximately -one-half
the Chinese population had
fled and that many foreigners
were preparing to leave as soon
as they could.
Preparing to defend the city,
the Chinese sank numerous ves
sels, including a large Japanese
owned dredger, In the inner har
bor to prevent entrance of Japa
nese warships.
News from the Hangchow
area, south of Shanghai, was
meager because of disrupted com
munications, but foreign sources
reported stiff fighting was going
on In the suburbs northwest of the
captured city and the Chinese
still were resisting to the north
east. The Chinese Premier-Generalissimo
Chiang Kai-Shek and
Mme Chiang, both Christians,
(Turn to Page 2, Col. 4)
f 4 V Tt- '
- m .
japan
Upon Tsingtao
-' 111 - k - i ?Vi
f V"' t
i - ,
Pan ay
Considered Ended;
MuWs Reply Sent
Amount of Indemnification Still to
Be Settled; Promise to Avoid
Infringement Slain Point
US Government Relies Upon Reports
of Navy; Steps Taken by Japan
to Avoid Trouble Are Cited
WASHINGTON, Dec. 25. (AP) The United States
accepted today Japan's guarantees "against infringement of,
or unwarranted interference with, the rights and interests
of the United States" in China.
The Panay incident, which threatened to create serious
diplomatic trouble, if not worse, between the two countries,
was considered closed as to its general lines. Some techni
cal points, chiefly the amount of the indemnification, remain
to be worked out.
Secretary- Hull, in a formal reply to the Japanese note
of yesterday, said:
"The government of the United States regards the Jap
anese government's account, as set forth in the Japanese
government's note of December 24, of action taken by it, as
Freighter Sends
Call of Distress
Small Vessel Off Canada
Coast Breaks or Loses
Its Steering Gear
SEATTLE, Dec. 25 -(&)- The
small freighter Beulah of Panama
sent out distress calls late today
from off the gale-swept Vancouver
Island coast, and the coast guard
cutter Redwing left Port Angeles
to aid the vessel.
Coast guard headquarters here
said they were informed the Beu
lah had either broken or lost its
steering gear, and that it was
keeping from beaching by use of
Its own engines.
While the cutter Redwing al
ready had departed, the speedier
cutter Samuel D. Ingham had
steam up at Port Angeles and was
(Turn to Page 2, Col. 2)
SANTA AWAY
4
f i'J
Incident Is
0 responsive to the request made by
the government of the United
States in this government's Bote
of December 14."
Secretary Hull conferred" with
President Roosevelt, Undersecy.
Sumner Welles and Asst. Secy.
Hugh Wilson before inditing his
reply.
The United States continues to
rely, however, on the facts con
tained in the findings of the navy
court of inquiry. This may be tak
en to mean that this government
does not admit the version of
"mistake," as contained in the
Japanese note, but does not Intend
to pursue the argument further.
Hope Efforts of ;
Japan Effective f ' '
After accepting Japan's note,
Hull said in his reply:
"It is the earnest hope of the
government of the United State
that the steps which the Japan
(Turn to Page 2, Col. 1)
Holy Land Bloody
On Christmas Day
43 Arabs Killed, Tiberias
tfegion; Christians Pay
Visit to Birthplace
JERUSALEM, Dec. 25. V
Christian faithful knelt at th
birthplace of the Christ Child to
day in prayer for peace In the holy
land, but even as they prayed
British troops moved to quell new
violence.
Forty-three Arabs were killed
and more than 20 wounded in bat
tle the past two days in the Tib
erias region. Three among the
British troops were reported
wounded.
Ten Arabs, were killed in battle
with military police in the village
of Yacoub, southeast of Nazareth,
this afternoon when a wandering
Arab band encountered three
British regiments.
Fearful that hostilities might
break out elsewhere, 4000 British
troops guarded Christians wbo
trekked to Bethlehem for potyiri
cial mass In the Church of the Na
tivity. .
Pealing bells summoned wor
(Turn to Page 2, CoL 1)
Memorial Chapel
Of College Burns
PARKVILLE, Mo., Dec. 25-)
-Fire destroyed the JlOCeoo
Park college , memorial chapel
here tonight,- . . .
Other buildings oa the campus '.
were reported saved. Fire ap-v,
paratus from Kansas City was
rushed here to aid in fightinr'the '
flames. ' . .. ' -; .-' . :
.There were no reports of In-: :
Jured. - :v , ';
' . The blaze broke out about 8:30
p.m. and was still burning more
than an. hour later.
- The building was of stone con
struction and was erected " la
1IS2.
Cause of the fire was not'
known. y
B
ALL AD E
of TODAy
r By ' R. C
; Twas the day after Christ
mas , and all through the land -people
nodded ' their heads at
the headlines they scanned; for.
the row. with Japan was ap
parently o'er and there seemed
to be vastly less . prospect of
(mustn't say the naughty