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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Dec. 31, 1937)
Art Appreciation Hundreds of set of die famous paintings offered by the National Committee for Art Appreciation are being purchased by Bta teaman . readers. Weather Partly cloudy today. Sat nrday unsettled, probably rain; Max. Temp. Thursday 60, Min. 42, river 21.4 feet, rain 2.30 inches, S-SW wind. m ' mm mm - bh niii n mm m w mm -;'. nn is - - ij.ii ii shmc- a w u a. i m r x mm mm a mm urn. a. n ' ! BOUKIhBB ' f ACf ' " EIGHTY-SEVENTH YEAR j Sakm, Oregon, Friday Morning, December 31, 1937 ' j Price 3c; Newsstands 5c No. 239 River -1.4 Feet Above Flood Stage, Rising I ' I I .-. ' . yv Ickes Attacks 'Big Business' In Radio Talk 'Irreconcilable Conflict Is Seen Between Nation . - and Money Power Alleges Strike Plot Made Against Government's Recovery Efforts WASHINGTON, Dec. 30.-(Jp)-Secretary Harold -L- Ickes, con tinuing the administration's at tack upon "big business," as serted tonight the power of con centrated wealth "must he com pelled to conform to our laws" at the coming session of con gress. An "irreconcilable conflict" between, "the power of money and the power of the democratic instinct' has reached snob an intensity in recent months," he said, that it is "clear that it must be fought through to a finish until plutocracy, or de mocracy until Ar, erica's 0 families; or America's 120 mil lion people win." The secretary, of the interior spoke by radio, over a: nation wide hookup. His speech was the third assault upon "big busi ness," to come from .within the inner administration circle with in a week. Two such addresses were delivered previously by Robert- H. Jackson, assistant at torney general. All are regarded as a prelude to President Roose Telt's message to congress and a drive for anti-monopoly legisla tion. . . Like Jackson, Ickes Accused concentrated : economic power of going on a strike against the administration, or threatening to do no business, unless govern mental restraints upon business are removed. Referring through out to capital as . 'JAmerlca'g. . fi 0 families.-" a phrase,""borrowed from a book by Ferdinand "Lund berg, he iBaid: ((0 Families Aligned Against 120,000,000 To the 120 million 'people of the United . States, they have made the threat that unless they are free to speculate free of regu lations to protect the people's money; unless they -re free to accumulate through legal tricks, by means of corporations, with out paying their shares of taxes; unless they are free to dominate the . rest of us without restric tions on their financial or eco nomic power; unless they :.Te once more free to do all these things, then the United States is to hare its first general sit down strike not of labor not of the American people but of the 60 families and of the cap ital created by the whole Ameri can people, or which the 0 families have obtained control. "If the American people call this bluff, then the America that is to be will be a democratic America, a free America. If the American people yield to this bluff, then the America that is to be will be a big-business fasc ist America an enslaved America." In addition, he denounced Henrys Ford as having sought to "defy constituted authority," and called upon business to purge Itself of 'its Girdlers and its Rands," before, "it "presume to tell people what they should, or should not, do about troubles caused by labor laws." Asserting that; the "60 fam ilies"' brought on the depression which began In 1930, he said the people called upon the gov ernment to Intervene and the latter was successful in restoring prosperity. "And last spring," he contin ued, "government had the busi ness of the country turning over eo well that it thought it could safely heed the pleas of-private enterprise, to government to abandon the economic initiative. Recovery Nipped In Bud "Last Spring V ; ' Pursuant to these pleas, gov ernment cut down public expendi tures to keep up" purchasing (Turn to page 2, col. 1) Cnniillitn T aIiam ojjauiuiiig s jjcujui Dispute Is Brief A dispute over a driver's wages and over alleged non-union 'umber yesterday resulted in a one-day shutdown of the Charles K. Spauldlng Logging company's operations here. Tho unionized employes, Including drivers and 29 sash and door workers, did not pass a picket line established by Salem local No. 324 of the teamsters' union. A. J. . Banks, teamster busi ness agent, announced at 4 p. m. that the dispute had been settled and the - picket . withdrawn so that regular business at the .slant might be resumed at once. He -asserted the Jteamsters ob tained a promise from the mill management not to buy more lumber from the Mill City mllL Farouk Ousts IS alias Pasha; Riots Follow CAIRO, Dec. 3 0. - (&) - Egypt's 18-year-old King Farouk today summarily ousted Nationalist Premier Mustapha Nahas Pasha and installed a government of his own liking that included several pro-Italian members, Angry supporters of Nahas and his dominant Wafd party swarmed outside the royal palace, shrieking "down with Farouk!" Police broke up the demonstra tion,: arresting 20 persons. Just be fore i Mohamem Mahmoud, the king's new choice for the premier ship,; took the oath of office with his cabinet. A large section of the capital was plunged Into darkness tonight when noting broke out in several districts and demonstrators smashed 'street lamps. Police ar rested the ringleaders. While the British embassy was reported displeased with Mah moud's ministerial selections be cause of the pro-Italians included, Britain was understood to have decided against sending army re inforcements unless' the emergen cy became more grave. Miners Involved In French Strike 1000 out at Anzin; Next Move of Government Closely Watched PARIS, Dec. 3U-(;p)-The wave of strikes threatening the stabil ity of the people's front govern ment spread today to the rich coal mining region of northern France. One thousand miners at Anzin, near Valenciennes, walked out in protest against discharge of three workers. Officials expressed fear all 16,000 miners of the Anzin company would join in a sympathy strike. Political circles won d ere. J whether the government would meet this threat to one of the na tion's chief industries with the tactics it' employed last night to end a walkout of 120,00 Paris municipal employes, a threat to call strikers to army service and put them back at their own Jobs under military discipline. Although that threat sent the capital's public service workers- (Turn to page 3, col. 7) Convicts' Dreams Not True to Form INDIANAPOLIS, Dec. 20-(JP) Convicts don't dream the way Freud's theories of suppressed wishes indicate they should. The dreams of 50 convicts, an alyzed for the American Associa tion for the Advancement of Science- here today by Dr. L. M. Hanks of the University of Illi nois, failed, he said, to show that they- were mainly interested in escaping as would be expected. Twenty of the 50 had the es cape dreams. Other convicts' dreams were about killing per sons, falling, seeing old friends, going home, making parole, get ting pardons, smoking' cigarettes, eating good food and rescuing fe male relatives. NOT VENICE, i XT e v3 Upper picture, 4. F. HneKan family of Tualatin takes to boats as flood water from the Tualatin river cover lowland country from two to tea feet. More than 80 homes were flooded. Lower picture, the tewn of Tualatin turned Into "Venice by the flood. Associated Press photo. Ta7 1 1 msae hv ncnts in ,11c! iiliaCK Loyalists') Losses Heavy Is Report ; Over. 1 000, v Is Enemy's Claim ' Two Rebel Strongholds in City Are Blown up, Reported There HENDAYE, Franco-S p a n i s h Frontier, Dec. 30.-(')-Insurgent dispatches tonight said their troops, supported by a heavy ar tillery and! aerial ' bombardment, had smashed through government lines northwest of Teruel and cap tured a number of positions. The insurgent general offen sive, described as "the Jnost exten sive operation" of the H7-months-old war, insurgent reports from Salamanca said, occupied the vil lage of Campillo and had closed in on Concud.i Adjacent government positions also were taken. The communique- asserted that retreating government troops had left more than 1,000 dead. Government advices-from Bar celona admitted, "we: have lost several positions' in the western sector. Insurgents at Salamanca assert ed that government forces had lost more than .000 men since Gen eral Miguel Aranda began his drive to relieve Insurgent troops besieged in three improvised cita dels within jTeruel. (It was reported from Teruel that two of the insurgent strong holds, the seminary and the Bank of Spain, had been blown up by government mining crews. Hun dreds of persons were believed buried under the heavy debris. ) Insurgent headquarters at Sal amanca announced over the ra dio that the; drive to retake Teruel had 'broken the enemy's desper ate resistance." :r Tragedies Occur On Yacht Cruise Owner Slain by J. Morgan, Lessee, Who Is Later "Lost" After Row LOS ANGELES. Dec. 30.-UF4- A slaying: and disannearance wiped out two members of a party of eight which sailed from here aboard the yacht Aafje De cember ,20 on what was to have been a two-day pleasure cruise, the survivors said here tonight. - John Hanson, federal bureau of investigation agent, announced Dwight Faalding, 49, Santa Bar bara hotel man and owner of the 58-foot yacht, was shot and killed by Jack Morgan, who had leased the craft, a few hours after the party sailed. Morgan took command of the Aafje, Hanson said, "and at a point estimated at about 500 miles from San Pedro, Morgan again became involved in n en counter, as a result of which he was lost at sea," u Faulding -was buried at sea off (Turn to page 3, col. 6) BUT TUALATIN 7T i Gai i - RECORD VOLUME OF WATER McNary Deplores War on Business Administration's Attacks Heighten Prospect of Recession, View WASHINGTON, Dej. SO.--The economic recession may be made much worse by the admin istration's current attacks upon big business, Republican Leader McNary said today. The Oregon senator declared that a psychology of fear was the cause of the present business slump, as much as anything else. Business people, he told re porters, were afraid to invest and to go ahead with business because they didn't know what to expect in legislation "They (Turn to page 3, col. 8) Mass Reindicted With 2 Deputies OREGON CITY, Ore., Dec. 30. JP)-A Clackamas county grand jury reindicted Sheriff E. T. Mass and Deputies Howard Mass and Jessie Paddock today on three counts charging larceny of 141,502.68 in tax funds. A demurrer to similar indict ments was sustained November 22 and the case was resubmitted to the grand Jury for charges to be made more specific. The indictments charged the three with wrongful possession and conversion to their own uses of public funds. INUNDATED r -i t ? tried m yf v. 1 ,T. ... , ztl (K A 34 : r rw v- - ' - - ' 1 Japan's Mills at Tsingtao Wrecked Exodus of Americans now Rapid; Vigilante Body Organized in City SHANGHAI, Dec. . 3 1-( Friday )-(ff)-Wholesale' destruction of Jap an's rich stake in Shantung pro vince continued today as Chinese worked with torch and dynamite to wreck mills and other proper ties before Japanese armies could reach Tsingtao. From that Shantung port an ex odus of Americans and other for eigners was in progress. Fearing disorders and possible spread of destruction to non-Japanese prop erty, a foreign vigilante corps was organized in Tsingtao. Japanese seizure of Tsingtao was considered inevitable, al though! latest military reports in dicated; no Japanese land forces were nearer than 100 miles. A Japanese army driving eastward from Tsinan, the captured pro vincial capital, was reported hea vily engaged at Changlo, near the halfway point on the 245-mile Tsinan-Tsingtao railway. Americans reaching Shanghai from Tsingtao described condi tions in interior Shantung as cha otic. Dr. Phillip Price of Balti more, Md., who made the rail Journey from Tsinan to the port, said a wave of Chinese refugees and troops fleeing eastward from Tsinan was meeting a similar (Turn to page 2, col. 2) Liquor Control in Crater Lake Park Made Court Issue PORTLAND, Dec. 30.-(!P)-The question of control of alcoholic beverages In Crater Lake na tional park was put to the fed eral court here today. The park- company filed a corn control commission, Arthur K. plaint against the Oregon liquor McMahan, James D. Burns, Stan ley S. Jewett. all commission members, and I. H. Van Winkle, state attorney general. The com pany requested an Injunction re straining the commission from Interference with the park's liquor .business or with the im portation of liquor from points outside of Oregon to the park. Multnomah Beats Idaho College, Overtime Game PORTLAND, Dec. 30-GIV-The Multnomah college basketball team defeated Gooding college of Idaho, 42 to 40, last night. Two overtime periods were played.- Late Sports LOS ANGELES. Dec. 30.-WV- Southern Oregon Normal dropped a closely contested basketball game to Loyola university : here tonight, 39 to 32. Loyola led at halftime 25"to 16- PORTLAND.;vDec. SO.-tiPV-The Vancouver Lions padded their Pa cific coast hockey. league lead to night, defeating the' Port land Buekaroos, 2 to 1, In a three pe riod melee In which players, fans and Referee Bill Shaver went wild. - PLAYS HAVOC 4 j ..-.- . v . ... .-;-.. -v- ..V' ; -i... . . .-i-,; - . " " ' -' ' - - ' - " - - - . t " . ' . -..: .-: ' ... - t.m- , snrfcaa- v ! Yi YMii i riftaf - ilitf ..'nfftaesMdnnljfciJ;lMit;a.i . f.niit.ottisMwiii im- m r.i,;--MikTi A rt.ia-'&MMfc Jfe A OGtauour&t late Wednesday afternoon on top of near-flood condi tions already existing played havoc with Salem's flood control sys tem and sent a record volume of water coursing down through the .pper k-il, Oregon uenne nierciai streets sags as two wooden piers are washed out. Lower left, the old city auto park completely Inundated. Two annn- nio tares on right, side and end views f flooded South Winter street bridge near Deaconess hospital. Lower right, looking across roar ing Shelton ditch to 12th street from vicinity of Southern Pacific passenger station. statesman Headway Made in Restaurant Issue The arbitration board delving into the Salem restaurant labor situation may complete its task at its third meeting, to be held at the chamber of commerce here next Wednesday, Joseph Randall, one of the three arbiters, reported yes terday. "We are making headway," Randall added, "but that is about all I can tell at this time." Rev. Francis P. Leipzig of En gene is acting as chairman of the three-man board. .Randall repre sents the Associated Restaurants of Salem,. Inc., and Carl Fred ericks, Portland cook, is arbiter named by the Salem Culinary al liance local. The board's duties are confined to determinations of wage scales and working conditions and in vestigation of the employer-union difficulties which resulted in pick eting of two association restau rants and'placing" of 28 others on the unfair list last fall. Chaffee Death Conclusion of Inquest Jury The coroner's jury yesterday returned a unanimous verdict finding that George D. Chaffee, 52, Silver ton mill foreman, met his death as a result of being struck by an unknown object by an unknown person. Chaffee died December 18 in the city jail where police hall placed him on a' charge of being drunk. Autopsy surgeons said death was due to skull frac ture. District Attorney Lyle J. Page did not announce when the case would be considered by the grand jury although it was considered certain the matter would reach that body's attention soon. Closing witnesses yesterday at the inquest included Charles "Chuck" Thompson, Roy Fortune. Edward Gottfried. George Belton, Ross B. Clarkv W. D. Dorman and Dr. Verdeu E. Hockett, county physician, who also was on the stand Wednesday. ' -Thompson I e 1 1 i fled he had WITH SALEM i 1 7 -H trestle Between I4berty and Com staff photos. Dynamite Proves Unpalatable; 100 Sheep Are Killed KLAMATH FALLS, Dec. 30.- ()-Dynamite which failed to ex pioae wnen excess powder was detonated at a state highway quarry by R. I. Stewart, Med ford contractor, was blamed by State Police Sergeant O. A. Mac Kinnon today for the death of 100 sheep. Earl B. Brown, Bonanza, and George S. Lewis of Dairy, own ers, said the sheep ate the dyna mite, frisked, leaped Into the air and died. State Relief Committee Gets $27,244 WPA Grant WASHINGTON, Dec. 20.-VF)-Representative Nan Wood Honey man of Portland said today the president had approved a $27, 244 WPA allotment for the Ore gon relief committee to assist those who package and distrib ute commodities and articles to state-wide public agencies. Due to Blow, warned Chaffee, whom he had ob served talking with McCollam. to "lay off that bird' because he was a "hay smoker,", referring to users of marijuana. McCollam and other witnesses had told the jury earlier that he and' one Chester A. "Sailor" Rogers had ben drinking with Chaffee the night Chaffee and McCollam were ar rested, '-j - ;:v '.; , "I do not use marijuana now.'? McCollam testified Wedn esda y after admitting he had done six months' time. at. Kelly's Butte, Portland hard labor institution, for selling marijuana. - That Chaffee's condition of stupor, while he lay in the city JaU. eould hare been ascertained by police to have been due to an Injury was opined by Dr. Hockett, recalled to the stand. Had a phys ician been called, he would have been suspicious of a skulf fracture from various observable symp toms." Dr. Hockett added. Crest Over 22 Feet Believed Probable now Santiam and Luckiamute Sending Large Volume Into Main Stream - - Water Recedes in Salem; Lee Street Bridge ,IsT Principal Damage threatened to exceed th 22-fut crest predicted by the weather bu reau as it climbed at the rate of -approximately .12 foot an hour, or little less rapidly than it did Wednesday night. At midnight the river sned along at the 21.4 foot level, 1.4 feet above Salem flood stage. It nad risen eight-tenths foot sine 5 p.m. and 1.9 since 7 a.m. Heavy outpourings 'from the Santiam and Luckiamute river apparently were the cause of the Willamette's continued rise: At Albany the main river was report ed falling. At yesterday's rate of rise the Willamette would, reach the 22 foot mark early -today and ap proach 23 " feet this afternoon. Durinr a freshet last Anril it reached 23.4 feet. Flood Recedes in - Salem Streams Cessation of the Dast week's downpours brought a halt in the small stream flooding of citv resi dential areas and rural areas yes terday and in nearly all sections of Salem the mopping up stage had been reached. Two and two tenths inches of precipitation was recorded in the 24-hour neriod ending at 7 a.m. and onlv .03 lnrh was reported in the, next 10 hours. partly cloudy conditions with possibility If more rain SatnrAar' were foreseen by the weather bu reau. From Robert SiewarL master of the armv eneinpera' nr boat, Rickreall, came reports on aownstream conditions. The out line of Horseshoe lake, near St. Paul, ordinarily far back from h river, was obliterated by encroach ing flood waters. Much of Grand island was inundated and the riv er was coursing' around a partly eroded revetment and down the " old west channel. Stewart, who came.upstream to take high water soundings and current readings at bank danger points above and below Salem, also reported the heavy flows from the Luckiamute and Santiam. Yes terday he carried his survey into the Independence territory, site of a large revetment project, was to moor there for the night Salem officials yesterday count- ed by the guess method, a substan tial loss from the rnvncpa nf etam- Lpeding Shelton ditch. The Lee street concrete biidge, built in 1930 at a cost of 33264.95, sank almost from sight at about 5:3 a. m. as the ditch waters under-' cut its abutments. All other brid- : ges including the large, modern concrete ones on South 12tb, South Winter and Sonth Church streets probably will require foot ing repairs. The South 21st street timber bridge, which replaced a concrete structure that collapsed last February, was found intact after fears for its safety had been expressed Wednesday. All bridges excepting a few wooden structures -were reopened to tra vel yesterday. . . Loss of city lands, cut away 'by Shelton ditch, appeared-likely to prove one of the greatest damage (Turn to page 2, col. 2) i . i MacArthnr Stave With Island Array MANILA, Dec. 3 1-( Friday)- -Major General Douglas Mac Ar thur and Commonwealth Presld?at Manuel L. Quezon, in a Joint state ment issued on the eve ot Mac Arthur's retirement from 5 the . United, States army, said Mac Ar thur would remain in the Philip pines to continue direction of the - commonwealth's nations! defense program. MacArthur, former chief of staff of the United States army, will be retired today with the rank or full general. He was assigned as military advlonr f Pfoet 4 A n r.. . a IVOlUCUh U son In 1535 and since then ha been encaged in th tion of the Philippine defense lurces. ' "This is a call of duty I eannnt overlook, the general said today in announcing his decision to re main here. B At LA D E oj TO D A 1 By fc C J By ft. C. When business is" booming the credit, belonrs to th rent administration; hut when there s recession the dissonant"' songs blame some -external dis integration -