I 1 1- Art Appreciation : Weather -." . .... , , . . . Rain today and Wednes day,, mow in high moun tains; Max. Temp. Monday 64, Mln. 47, river 13.1 feet, rain 2.91 inches, southwest wind. Hundreds of .sets' edf the famous painting offered by the National Committee for Art Appreciation are being purchased by , Statesman readers. POUNDDD 1651 EIGHTY-SEVENTH YEAR Salem, Oregon, Tuesday Morning, December 28, 1937 Price 3c; Newsstands 5c No. 235 9 ornni Intensified on iwraiwcst -o T7 Coast :ao FaU r; Tsinari 1 Already Taken " . i Gunboat Ready to Leave H:With Americans From Beleaguered Citv ?unitive Action Planned by Japanese Because Mills Destroyed SHANGHAI, Dec. 28.-(T u e s- tay)-()-Japanese. armies rolled louthward across Shantung pro ' rince today after capturing Tsin m, its capital, and isolating Tsing- olo, Its "great Industrial and port iity. j The fall of Tsingtao, cut off fromthe rest of the province,1 Seemed imminent. The some. 300 American civilians remaining in the city were ready to take refuge on . three United. States warships in the harbor. ' A dispatch from Tsingtao said the United States gunboat Sacra mento would leave today for Shanghai with any Americans who wanted to flee the province. The Japanese announced Tsin an, seventh provincial capital to fall before -Nippon's armies, was occupied completely Monday. - Throughout Sunday night hea vy Japanese guns implaced on the north bank- of the river pounded the city. At midnight the north and east gates were captured and at dawn three columns of infan try began mopping up the feeble resistance. ,,. Chinese asserted the city had not yet fallen. The capture of Tslnan followed the army's announce ment at Tientsin that "drastic punitive ac tion" woutd be taken for Chinese destruction of some $100,000,000 Arorth . of Japanese property at ' Tsingtao. . The property, chiefly cotton nuns, uau uccu iitu li J wna j i nese since the outbreak of the un declared war as hostage against invasion. ;.r Because of the still uncomplet ed task of cleaning up the country around Nanking, as well as the city itself, the Japanese asked for eign nations not to reopen their embassies at Nanking. v The presence of foreigners, it was pointed out, would be danger ous and undesirable until absolute Japanese control had been estab lished. . The United States had planned to send two consular officials to Nanking today to reopen the em bassy which was abandoned when the Chinese government left the capital. Washington, however, was understood to be considering the . Japanese request. mill. n rl hAlrf . A " M , TOKYO, Dec. 2 7. -()-Japanese government officials today, praised the peaceful settlement of the Panay crisis between Japan , . Tt.fi. J r,.A 1 . . iim me niiieu aiat.es as uemou itrating the ability of "two civil ized nations" to solve their seri . us problems. "Fifteen or 20 years ago," a !oreign spokesman said, "such a ;ragedy (as the Japanese sinking 3f .the United States gunboat Pa nay) would have been followed within a few hours by a declara tion of war. "Japan's prompt apology and the United States' prompt accept snceef the final note, plus a dis passionate searching for facts dur ing the intervening period, should set an example for the wnole world." 0 dditicc . . in the News BUFFALO, X. Y, Dec. 27 -JP)Vollce officers told today bow wire-haired fox terrier stood guard over a prostrate Pekinese in a b a s y Buffalo street, snarling at rushing an tomobiles that passed too close to its fallen companion, l : . Detective Arthur J. Gibbons and Liut. Nelson Gateline, ap-' proachiag in a police patrol ear, said they blocked traffic with their machine to" relieve the terrier of its vigil and took the injured Pekinese to an an imal shelter. NEW" YORK, . Dec. 27-P)-H tnrkeys could talk tnrkey r Talking turkey by proxy. In spector Thomas F. Morgan of the department of weights and, meas ures gave a tip in court today to housewives who may have sus pected that the Yuletide bird seemed to have lost weight after leaving the butcher's scales be fore being popped into the oven Thomas said he went Into a ild-town butcher shop and bought a gobbler that weighed 10 pounds and four, ounces. In side the gobbler, wnicn ne snatched from the - scalesy he found three pieces of lead weigh- inr one sound and 10 ounces. The nronrietor and. butcher Tsingl u Likeh were held In $1,0 00 bail each. Russian Aid For Chinese Is Indicated HANKOW, China, Dec. 27-Jp) Foreign diplomats today sav in the arrival of the new soviet ambassador to China, a soldier rather than a diplomat, indica tions that closer military rela tions between China's and Rus sia were in prospect. Ivan Tewfimovltcb Luganets Orelsky, 38' years old, with the longest name but shortest diplo matic experience of any foreign envoy in this temporary capital of Ch'.na, arrived Sunday by air plane. Arrangements were in progress for an early meeting - with Chi na's leader. Generalissimo Chi a n g Kai-Shek, at the latter's headquarters at an undiselosi spot in the mid-Yangtze valley. 'Of particular interest to other diplomats was the fact that Lu-ganets-Orelsky was several weeks on his journey from Moscow to Hankow, apparently spending much time along the great con tinental highway from Russian Turkestan across Chinese Turkes tan (S'nkiang) and Kansu, along CTurn to page 2, col. 6) Dallas Man Dies After Auto Hits Preston Dickey, World War Veteran, Is Victim, of Accident on Street . DALLAS, Ore", Dec: 27. Pres ton Dickey, about 47, of Dallas, died in the Dallas hospital short ly after he was struck by an automobile d r i v e n by John Benge, about 6 o'clock tonight at the intersection of Main -and Court streets. Benge, witnesses said, stopped within a few feet after striking Dickey and 'gave such aid as he conld. ' -r, "Dickey's death was believed due to a fracture of the skull. Emnloved steadilv for the last 1 14 years by the Willamette Valley Lumber company here, Dickey served overseas during the World war with company L of the Ore gon national guard, the Dallas company. He is survived by his widow; three children, Guy, Preston and Phillip, all of Dallas ? a brother; Noel, of Dallas; three. Bisters, Mrs. Mary Yocum of Balls ton, Mrs. W. E. Martin of Monmouth and a sister of Amity whose name was not learned. Funeral arrangements have not been completed. Little Espionage Reported in NW WASHINGTON, Dec; 27-VP)-Senator Thomas (D., Utah), mem ber of the senate civil liberties ommittee, said today investiga tions to date had disclosed "com paratively little" evidence of es pionage against labor in the Pa cific Northwest. "Of course," he added, "our studies are by no means complete as we have not yet reached . the large national associations. The committee's report, pub lished recently, listed but one firm in the states of Washington, Oregon. Idaho and Utah. This was the 01ympia:Forest Products com pany of Port Angeles, Wash. Evi'Vnce also showed the Se attle office of the Pinkerton Na tional Detective agency assigned its Investigators to service in the auto mechanics' union, the Inter national Association of Machin ists, the International Union of Mine, Mill and Smelter Workers, the marine cooks and stewards' association, the plywood and ve neer workers' union and the saw mill and timber workers' assocla tiOn. ' ; Unemployment Help Business, Is Forecast WASHINGTON, D. C, Dec. 2T rW-OfUcl! of the social se curity board, say they expect business to receive a lift about February l from the payment of unemployment insurance bene fits in 21 states and the District of Columbia. Board officials said today time alone would tell how much of the $437,800,000 reserve of the unemployment insurance systems would be paid out this winter. They said they would have no Idea until insured workers who have lost their Jobs begin to register after January 1. An . immediate upswing In business ' probably would reduee the amount considerably, the officials added. All provide unemployment ben efits only for persons who have had jobs since the systems were established. ' 1 . Most , of them cover workers McNacks Prof TVA LJd's Moves Norris Support; Also Is Reported, .Indicating Discord Serious Condemnation Suit Said to Have Brought It out Into Open NASHVILLE, Tenn., JDec. 27-(yP)-The Tennessean, in a special dispatch from Washington to night, said a broad investigation of the Tennessee valley authority is under consideration by congres sional leaders. Hints of an investigation have been made recently following hearing of a condemnation suit against the purchase of mineral and marble leases in the Norris dam reservoir by Sen. George L. Berry and otherB. The dispatch said Sen. Charles McNary (R, Ore.) had endorsed the move for an inquiry into op eration of the authority. "Senator McNary (ranking mi nority member of the senate agri culture committee) said that he will bring the TVA controversy to the attention of the committee at its first meeting '(after the January 3 opening of congress)," the story said. It quoted Sen. George Norris (R, Neb.) as saying he would not object to the investigation. "The declaration of Norris, who has spent the greater part of his time and energy- in recent years in fighting for the TVA," it add ed, "indicated that friends of the project as well, as foes fear for the future unless the administra tion of the gigantic program Is smoothed out. "It was learned from a highly reliable''! source i that President Rassevelt himself is deeply con cerned over the outspoken bitter ness" between dirctors of the TVA during the condemnation suit. Salvage of Panay Sister Ship's Job Consuls Also Aboard Oahu Bound for Nanking to Reopen Embassy SHANGHAI, Dec. 28-(Tues-day)-UP)-The United States gun boat Oahu today sailed up the Yangtze river to start salvage operations on her tragic sister ship, the gunboat Panay, sunk by Japanese bombs December 12. Aboard was Lieut-Comdr. Har old Lamer, of the naval con struction corps, to superintend efforts to salvage valuable and secret naval- papers from the ship's safe at the bottom of the Yangtze. T j Due to the absence of navi gation markers and the possibil ity of river mines, necessitating anchorage at night, the voyage was expected to take until Thurs day to reach the Panay attack scene near Hohsien, upriver from Nanking. Also aboard the Oahu were (Turn to page 2, col.. 8) Gaiser Slated to Head Association Supt. Silas Galser, head of the Salem- public school system, is scheduled for election as president of the Oregon State Teachers as sociation at the annual convention opening fa Portland Wednesday He is now vice-president; eleva tion to the presidency from this of fice is automatic A large number of Salem teach ers are expected to attend con vention sessions. Benefits to whose employers also employed at least seven o,thers. This lets out the single clerk in a grocery store, for instance. Only in the District of Columbia, Minnesota and Pennsylvania are single em ployes covered, i . All the systems required the insured unemployed to register at an employment office and to wait several weeks before re ceiving benefits. " During that waiting period, the unemployed man, or woman, must take any suitable Job that turns up. Michigan's maximum weekly benefit Is $16. The maximum of all the others is. $15. Some have no minimums, but the minimums of most range from $5 to $7. depending on the time worked and pay received by. the worker during the previous year. The benefits will continue from 12 to 22.6 weeks, most of . (Turn to page 2, coL 41 Valley Gale Reaches 75 Miles Per Near Astoria That City Entirely Cut off Communication Except by Radio Grand Island, Wheatland Threatened; iSIany of Highways Blocked PORTLAND, Dec. 27.-(i93)-A southeast gale which struck the Oregon coast Sunday reached a velocity of from 65 to 75 miles an hour at Astoria tonight, a dispatch received via the navel communications reserve station here said. Four inches of rain fell today in one of the heaviest storms on record. j Astoria was entirely cut off from wire communication. Two vessels lay outside the Co lumbia river mouth and several inside. Coach guard officials said no distress calls had been re ceived, f New slides halted traffic on the Spokane, Portland & Seattle rail way at Broadwood and piled ad ditional debris on the lower Co lumbia river highway at West port, closed by slides Sunday. The Danish East Asiatic motor ship Europa, moored at the As toria docks with two dozen lines, threatened to break away in the gale. Traffic proceeded cautiously over the Portland-Astoria high waymenaced by slides and fall ing trees which halted wire com munications for the past 24 hours. Emergency messages were carried by the naval radio. At Coos Bay, to the south, a 50-mile an hour gale continued for the second day, but rainfall was lighter. Stages continued on schedule but trains ran only dur ing the day to guard against acci dents from possible washouts and slides. More than a dozen streets were blocked in Portland and traffic hazards from floods, slides and (Turn to page 2, col. 4) Northern Idaho's Storm Is Severe WALLACE. Idaho. Dec. 27 (lf- two-dav snowstorm which y s f ' ' 4 pioneers described as the worst in the history of the uoeur d'Alenes closed three of the re gion's major mines today, cut off communications, naralyzed highway travel and brought a menacing threat of avalanches. A small girl, Jennie Carle, suf fered a back injury, an ankle fracture and Internal injuries, when she was burled under snow and debris for a half hour. The porch roof collapsed on her in Montgomery 5ulch. The snowfall here for Sunday and today was 35 inches, at Mul lan 36 and at Kellogg 20. The snow measured 96 inches at Mile High lookout; summit on the Idaho-Montana divide. The Hecla mine at Burke and the Morning at Mullan shut down operations because snow kept crews short-handed. The Jack Waite, ft smaller operation, was closed down by power shut off. Gus not Suitable Name for Pastor, Is Judge's Advice TACOMA, Wash., Dec. 11-Wf-"Gus" is no name for a minister. In the eyes of Federal District Judge Edward Everett Cushman. He so advised the Rev. Gustav Lue - Freigang today when the minister annlied - for United States citizenship anJ requested that "Gas" be substituted for his natal "Gustav." . "But I like short names, the minister replied. "When Gustavus Adolphus was king of Sweden,' Judge Cushman said, "I don't think they called him Gus." "Your honor, said Mr. Frei gang, "I .will take your advice. I will remain GusUt Freigang. Licensing Detectives Is Talked to Halt Spying " WASHINGTON, Dec. 27.-ff-Senator Thomas (D-Utah) said today the senate i civil liberties committee was considering the licensing of private detectives as a means of halting labor espionage Si reams I ... I I yl r X v s - - I I " V ' - .t'-vt'- f)C y , r H. Hamilton, state highway department employe sta tioned near the "shore," flags motorists on the Salem-Dallas highway to warn them that water reaches a depth of more than a foot In the quarter-mile stretch beyond. Later it rose to 18 inches. Photo was taken two miles west of Drunk's Corner. A pilot car helped traffic get through to Dallas part of the day Monday. lien Maxwell photo. Four Deaths Are Caused by Storm 2 Trainmen Killed When SP&S Train Wrecked Near Washougal PORTLAND, Dec. 27.-(-Four deaths in Oregon, and two more across the Columbia river at Washougal, Wash., where an SP&S train crashed into a slide last night, were lett in the wake of the Christmas storm which swept the northwest this weekend. John Malloy, 27, of Vancouver, a .brakeman, and Everett S. Wil son, 59, Portland, a fireman, died when the 75-car freight train, drawn by two engines, piled up on the slide four miles east of Wash ougal. caught fire and burned. Jack Raab, engineer, was in a Vancouver hospital with both legs scalded and head lacerations. N. P. Larson, Portland, engineer, suffered a scalded face. Three oth er crew members were uninjured. Wreckage was cleared and traf fic resumed late today. The head engine rolled 100 feet down an embankment. Five of the cars were smashed to kindling and their cargo, principally wheat, scattered. The wreckage continued to burn briskly today as wrecking crews cleared the track. Ambulances could only get with in a mile and a half of the wreck last night. At Portland Rh Hubert Mc Cullough was electrocuted in the flooded basement of his home to day. Clarence Thompson, 17, of Wal terville, was fatally injured Sun day when his automobile skidded from the McKenzieriver highway near Leaburg. Albert Parrottee, (Turn to page 2, coL 6) Portland Bridge Experts Win out SEATTLE, Dec. 27(P)-Port-land's team of four contract bridge experts today ended a two day, exhibition match byf defeat ing a Seattle quartet by a gross score of 4000. Frank Gates, Warren Aber crombie, William Leary and Stanley Jaloff were on the Rose City team which defeated Lillian Thompson, Bill Savery, Joe Muck ley and John Stableln in the 64 hand match.. A return exhibition will be played next month in Portland. C C. Colt Will Retire PORTLAND, Dec 27-()-C. C Colt, First National bank direc tor and vice-president for 18 years, will retire January 1. He was president of the Oregon Bank ers association in 1933. : - . T Late Sports PORTLAND, Dee. 27.-P)-The unbeaten University of 1 Oregon basketball team turned in its ninth pre-conference win tonight defeating Union Oil of Portland 49 to 21. . The Webf oots ' alternated a tone with a man to man defense with equal success. 1 " .: The halftime score was 31 to 10 for Oregon. Laddie Gale, Oregon forward, was high with 13 points, followed by Bob Hardy with 11. ... V '" - ' - - ' " JL . Jf- ' ' JBl v ja - a Continue Warns "Seagoing" Valley Motorists Tillamook Region Is Badly Flooded When Dikes Burst PORTLAND, Dec. 27-JF)-Shortwave radio messages from Tillamook picked up by ama teur operators here tonight said Trask, Kilches and Wilson riv era had overflowed, bursting dlkee, flooding farm lands and highways and washing livestock out to sea. The messages said the Kil ches river had covered the highway north of Tillamook with four feet of water for a mile and a half. Slides and fallen trees blocked the Wilson river high way and a log jam SO feet high was reported to have dammed the river. KELSO, Wash., Dec. 27-JP)-Runoff water from surround ing hills flooded nearly a doz en homes In north Kelso and threatened more than 50 oth ers tonight. Families were evacuating to higher ground. - A flood control" project to protect the area, damaged sev eral times in- recent years, was held up several weeks by a wage dispute. 34 Arraigned on Contempt Charge PORTLAND, Dec 27.-(P)-Thirty-four men accused of con tempt for the alfeged violation of a restraining order' against pick. eting at the Newport docks ap peared in federal court today. Taking of statements began be fore Judge James Alger Fee on stipulation between attorneys for the defendants and the Waterfront Employers association, who brought the complaints. Testimony In the trial last week of ! Ralph Peoples, Jacob Dexter and M. A. Walters, held guilty by an advisory jury last week, will be used in the pending cases. The defendants were released until Wednesday in custody of their counsel. 250 Accidents Occur PORTLAND, Dee. 27.-(P-P.o- Uceman William St, Claire Tully said 260 Christmas eve accidents, in which 74 persons werejlhjnred, had been reported. Freighter Beulah Wins Over Angry Sea; Reaches Victoria VICTORIA, Dec. . 27-(ff)-Cap-tain S. Erickson piloted , his 1, 04 2-ton south seaa freighter Beu lah into Victoria's outer , harbor today, t tictor in a. i 6-hour battle against ' the sea -which " took ' the life of one of his: crew and , in jured another. - The little : motor-vesseV which came north for a cargo of lum ber, salmon and general ' freight while the copra season was at a standstill, developed' rudder trou ble .off Carmanah point at the southern tip of Vancouver Island on her outward voyage. - - During Saturday night, while the eon verted' barquentine dragged two anchors nd Just missed pounding herself to pieces on sharp rocks; first - officer Trygve Bradgo was wakhed over board while the crew looked on, helpless. Boatswain Frank Mn- Their ..v. My 1 I Ralph McCulIough Live Wire Victim Electrocuted or Drowned in Home at Portland; Recently Married Ralph Hubert McCulIough, 25, graduate of the Willamette uni versity law school in 1936, was electrocuted . or drowned after he came in contact with a live wire in the flooded basement of his home at 15504 SE Martins street in Portland early Monday. . McCulIough had gone into the basement, in which there were 40 inches of water,' to remove a pump which the flood had sub merged, shortly after 5 o'clock Monday morning. Mrs. McCulIough, formerly Gwen Gallaher . of Salem, heard him scream; then he shouted to her to cut off the electric light switch. She dd so immediately, then went into the basement to find her husband dead and lying under water. Denly Coroner Snook said he was unable to determine whether McCulIough died from the elec tric shocks or from drowning after the shock rendered him un conscious. . Delayed by stof m conditions. La deputy sheriff and two PGE company linemen tried artificial respiration without success. Mr. end Mrs. McCulIough had been planning to" entertain friends at a party at which they were to announce t h el r mar riage, nerformed Rentember 24 in' Stevenson, Wash., and kept secret even from Mr. McCuI lough's office associates. Mrs. McCulIough, a 1937 grad uate of Willamette and daughter of Mrs. Elizabeth Gallaher, who until recently was secretary of ( turn to page 2, col. 6) Headquarters Battery Has Banquet; General White Guest Speaker . Major General George A White, adjutant-general of Ore gon, was guest speaker at the annual banquet! of the Headquac- ters Battery, 249th Coast artil lery, held at the Quelle restau rant last night. Captain Arthur B. : Bates was toast master for the affair at whieh 44 enlisted men and seven offi cers of the battery were present. knlasi was hurt. ' , -Captain Erlckson's distress call waa answered by the United States coastguard cutters . Red wing and Samuel H. Ingham. The Pacific Salvage complay r tug boat Salv&ge King also was sent from Victoria. - - Erickson said his erev be haved wonderf nlly" I during the tense period from Saturday night to Sunday afternoon, whea the steering gear was repaired tem porarily and - the Beulah began her slow trip to Victoria. - When she reached here, the freighter was listing. heavily, and all but one of her lifeboats were washed away.' Launched - as. a barquentine in 1923. the Beu lah is now a twin engined- mo-torship.- :-S h e is 4 operated v by Varriso Corporation, Inc., of San Francisco. r Rise County Roads And Highways Here Flooded Pilot Car Is Needed on .Salem-Dallas Route; Rain t5 Continue River Level Climbs but Flood Mark Unlikely ; . 13.1 Feet Latest i Storm - drenched mid - Willsm- ette valley citizens yesterday saw county roads and state highways flooded, small streams overrun-' nlng their banks and the rivers rising rapidly as the day brought .63 inch of rain in addition te 2.90 inches which fell in Salem during the 24-hour period end ing at 7:30 a. m. , Many Marion county foeee were washed out in varying ex tent. Several important thorough fares were covered hy overflew water. In Polk county pilot care led motorists through water oa the Salem-Dallas highway and -several farmers were isolated when small bridges near Rickreall were carried away. The Willamette river rose steadily yesterday at the rate of nearly three-tenths foot an heur to reach 13.1 feet by 10:30 b. m. The weather bureau at Portland predicted the river would reach 17 feet at Albany and 15 feet in Salem tonight. The late fere- cast stated that flood stage was not indicated for Salem although the upper river was still rising. ; December Rainfall ..v-, Is Above Average The weekend's rains brought the total precipitation for the month to 8.54 Inches, slightly less than one-halt the all-time record established In 1933 but 3.21 inches above the mean aver age for December. Rainfall since Wednesday, the last dry day in Salem ha tntaloil 4 91 Inrhca Near perry on the Salem-Dallas highway, water from ever flowing Rickreall creek reached a depth of nearly two-feet yester- ", day afternoon and traffic was di rected by a state department pilot car.The same stream flooded the highway in Kickrealf from the Haunted Mill dance hall to the Richfield service station before it receded three feet from its peak stage. Bridges washed out by the Rickreall left the families ef J. P. Hamilton and Charles Larkins marooned on their farms. In Marion county the Turner highway was flooded to running board depth in the flats south of the state penitentiary annex, wa ter flowed across Turner road near the Salem airport for the first time in several years and the lower Salem - Silverton highway was again inundated. At last re port the North Santiam highway -remained open as far as Detroit. umu ill nwuj - Reported Serious (Innnfv Rnrlnse, V C. H.kka said numerous reports of minor county road washouts and several of a serious nature were being re ceived. Among the most serious were believed to be breaks In a road a short distance northwest' and another east of St. Pauk Although Sunday night's wind storm reached 3 8-mile aa hoar velocity, no serious damage was reported in Salem. The accompa nying torrential rains, however, kept the city sewer departsaeat's crew busy attempting to clear up trouble In Isolated cones, Assistant City Engineer J. H. Davis report ed. The storm caused flooded basements in the vicinity of Mth -and Center streets for the first time In the memory of engineer- ' lug department - employes. Basements were flooded on wi ui wnyuvi ireei oeiween II and Nebraska because the sewer in that area runs north into the Belmont system rather thae late -the newly - constructed D street line. Engineer - Davis said. The Walnut park district, ' always a trouble zone in other years, brought 'no complaints from the (Turn to page 2, col. 1) B A L L A D E of TODA V By R. C - Thy held a hearing Just a week ago, at which some scores of witnesses described how high Willamette valley floods might go, if funds for flood control were ; not prescribed; now aa- ' ture takes her turn at testify ing and valley project's friends approve, no -doubt; we -hope that her wholesale humidify- ing will stop before the roads0 are all washed out:- '