Basketball
Doin of basketball
game of Interest to Salem
port fans ere played each
weekend. The Statesman has
the news first. '- -
Weather J
Showers today,' Sunday
rata,' temperature mnchanj?
ed; Max. Temp. Friday 48,
Min. 36, river 7.4 feet, rain
ltt Inch, south wind.
PouNon o 1651
i EIGHTY-SEVENTH YEAR
Salem, Oregon, Saturday Morning:, January 29, 1938
Price 3c; Newsstands 5c
No, 264
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O M O
TTTi . o n
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ManDiec
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A.
Arre
Japan to Face
Second Enemy
Official Says
Hull Orders Ambassador
to File Protest Over
Slapping of Aide
Allison Tells Story of
Attack; Another US ;
Citizen Involved
TOKYO, Jan. 28-(SVThe pow
erful Japanese war minister, Gen.
Suglyama, told parliament; today
Japan must prepare to fight an
unnamed third power because of
the undeclared war against China.
- (Geri. Sadao Arakl, who as war
minister ' directed Japan's 1931
1930 conquest of ' Manchuria,
frankly declared last October 25
that "it probably is necessary for
Japan to strike directly at Rus
sia.) General Suglyama assured
parliament that Japan's military
strategists were- 'mapping plans
carefully to meet all contingen
cies." ,
The China war, he admitted,
"gradually is assuming greater
proportions and the situation
rapidly is becoming graver."
WASHINGTON, Jan. 28-P)-
Secretary Hull sent instructions
tonight to : Ambassador Grew,
Tokyo, to make representations to
the Japanese government regard
ing the slapping of American
Third Secy. John M. Allison, Nan
king, by a Japanese sOldier.
- At the same time the state de
partment published an account of
the affair, which is at consider
able variance with - the ; official
Japanese version, and Secretary
Hull took occasion to praise Al
lison's work" v
The-state-dopartmf tti disclosed
that not only Allison, but another
- American was slapped in the face
. by-the Japanese soldier. This was
Charles Riggs, a member of the
faculty of Nanking university. v
According to the state depart
ment account, the Incident grew
. out of Allison's ! Investigation of
the attacking of a Chinese woman
by Japanese soldiers.
Vt Allison and Riggs went: to the
' Japanese barracks where, the
woman said, she had been attack
ed three times. They were accom
Japanese consular policeman and
gendarmes in civilian clothes. "
"At that point," Allison-tabled,
a discussion was held as to whe
ther or not Mr. Riggs and myself
should accompany the woman. . .
"The gendarmes said we had
better not go into the building but
did not definitely say we could
not.
"One of them forcibly took the
woman and walked with her
through the open gate of the com
pound, whereupon he was follow
ed by Mr. Riggs. I followed and
just inside the gate we stopped to
discuss the matter.
"While doing so, a Japanese
soldier dashed up angrily and
shouted in English 'back, back.'
at the same time pushing me back
toward the gate. I backed up slow
ly but before I had time to get out
of the gate he slapped me across
the face and then turned and did
the same to Mr. Riggs. '
. "The gendarmes with us tried
feebly to stop the soldier and one
of them said in Japanese 'these
are Americans or words to that
effect. We were then outside the
gato on the street. As soon as the
soldier heard we were Americans
he became livid with rage, repeat
(Tura td Page 2, Col. 2)
0
dditios
. . . in the News
1 WATEBTOWX, Wis., Jan. 28
-(JPy-Arihur E. "Turkey" Gehr
ke, dnbbed the human ground
hog, today decided he would re
main between the blankets Feb.
2 and leave the job of weather
forecasting to the furry variety
of groundhog.
Gehrke, who spends his win
ters hi bed because be says cold
weather gives hint a misery, be
gan his hibernation last f alL Af
ter receiving current weather
reports, ho declared he would
remain holed up until balmy
breezes blow In the spring.
ELM1RA, N.Y., Jan. 28-(ff)-A
week ago Floyd J. Brook's restau
rant was damaged by fire and wa
ter. The next day his pet cat died.
Then someone ransacked his res
taurant. v
Brooks packed up and announc
ed that he was going to locate
elsewhere.
Now the police are looking for
him- o tell him that they, have
recovered : some of the stolen
goods. - ;
TERRE HAUTE, Bd Jan.
28-F)-Jadge John W. Gerdink
signed s divorce decree today
for William H. Wilson, s farm
er, who testified that his wife
took his false teeth and kept
then until he paid her $2.
JAPAN FIGHTS A, PERHAPS OTHERS
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A high official of the Japanese army yesterday told the diet at Tokyo that Japan must now prepare to
fight "another nation which he did not name. Top picture, the imperial conference, first since World
war days, at which officials decided they would recognize no longer the Chiang Kai-shek regime in
China. Emperor Hirohlto in center. Second picture, Hirohito, astride a white horse, reviews the Imperial
bodyguard; below, a Chinese warship, bombed by Japanese planes, sinks near the mouth of the Yangtze
river.-JIX photos. " . "
State Relief Cost
Up in Multnomah
PORTLAND, Jan. 28 - () - A
heavier general assistance demand
has resulted in increased expendi
tures by the state relief commit
tee. December relief costs advanced
150,000 more than November and
$45,000 more than the corres
ponding month a week ago.
Jack Lulhn, chairman, recom
mended Multnomah county apply
for resumption of work on un
completed federal projects and In
itiate new ones. He said in Mult
nomah county, where relief re
quirements are particularly large,
had 1900 certified WPA workers
on direct assistance.
Bonneville Lake ;
To Undergo Test
PORTLAND, Jan. 28-()-En,
gineers will allow Bonneville dam
lake to fluctuate between the 75
and 40-foot depths the first two
weeks of February to permit tests
of equipment. Major Theorn D.
Weaver, engineer for the Bonne
ville district, s a i d an average
depth of 67 feet above sea level
would be maintained this spring.
Recession Already Waning,
Five Railway
PITTSBURGH, Jan. 28
Five railway chiefs including
heads of three of the nation's
largest roads surveyed the bus
iness front today and concurred in
the opinion that the country is
pulling out of the recession.
In Pittsburgh for a directors'
meeting of the Association of
American Railroads and a traffic
club banquet with leaders of oth
er industries, the railway execu
tives expressed their views to
newspapermen. - -
M. W. Clement, president of the
Pennsylvania railroad, reported a
gradual increase in car loadings
during January which he said In
dicated increased business lor in
dustries served by the company's
lines. He added: . - . . .
"Business has already dragged
bottom. It is starving on the up
- .
Many Friends at
Forsyth Funeral
VANCOUVER, Jan. 28-(CP)-Rolphe
Forsyth, 28-year-old
scholar-adventurer, was burled
with a simple ceremony here to
day. Friends and relatives filled the
funeral chapel where services
were held for the former Van
couver teacher whose wanderings
took him across Canada and
Europe on chick-sexlng lectures
and ended in Seattle harbor,
where, police said, he drowned in
an attempt to blow uj? the Jap
anese liner Hiye Maru.v-
a . 1
is AttacK
Upon new Front
H E N D A Y E , France, at the
Spanish Frontier, Jan. 28 JPy
The Spanish government t o d a y
suddenly shifted the spearhead of
its widely-developing Aragou of
fensive and struck at Insurgent
lines southwest of Teruel.
A government communique said
several insurgent positions south
west of the eastern city had been
captured. At the same time and in
the same sector, government dis
patches said. Insurgent attacks
south of El Muleton, a hill posi
tion overlooking Teruel from the
west, had been driven off. ,
Chiefs Agree
grade. There will be a great im
provement in the spring."
E. E. Morris, president of the
Southern railroad, commented:
"Very soon things will be hum
ming so that the American people
will hardly know they have had a
depression or a recession, business
is down as far as it will go and is
on the upswing."
Lw W. Baldwin, head of the Mis
souri Pacific , railroad, asserted
"We have not only hit bottom in
this depression, but we are on the
way up." ; -
John J. JeHey, president of the
association, who said yesterday in
a speech to the association that
freight rates must be increased to
bring the railways out of a "finan
cial bog," expressed the opinion
"America has begun to null out,'
Loyaiisi
-SvrfiXy:.
Carson Says Port
Will Remain Open
PORTLAND, Jan. 28-(ff)-May-
or Joseph Carson said.. today it
was unthinkable Oregon produc
ers would "tolerate" enforced
rail transportation of products to
Vancouver, B. C, for water ship
ment as they did during the 1936-
1937 maritime strike.
Carson added he intended "to
keep the port of Portland open.
let the chips fall where they may."
He did not comment on reports
of a possible longshoremen's
strike on the Pacific coast.
"A few selfish people, greedy
for power thwarted prosperity by
such acts as closing the ports,"
the mayor said.
Late Sports
LACEY, Wash., Jan. 28.-;py-
Mt. Angel college basketeers from
Oregon edged out the St. Martin's
college Rangers 40 to 39 here to
night In an overtime thriller.
ALBANY. Ore.. Jan. 28-tiPV-Al-
bany college basketball players
won from a Multnomah college
five, 64 to 36, here tonight,
OREGON CITY. Jan. 28.-(V
The Portland University Pilots
drubbed Pacific university, 42 to
27, in a basketball game here to
night. O'Donnell scored 17 points
for Portland. "
PORTLAND. Jan. 28-4Pr-Eddle
Spina, Portland lightweight.
scored a technical knockout in the
seventh round of a - ten round
main event -with Manuel Plaza,
Sacramento, tonight. Spina open
ed a deep cut over Plata's left eye
and . Referee Tom Louttit stopped
the fight. Spina weighed 133
pounds, Plaza 133 .
SPOKANE, ash Jan. 28.-(ff)
-Tiger Jack ox, v Spokane negro
light ' heavyweight and second
ranking title seeker, knocked out
Hank HanUnson, Los Angeles
heavyweight, two minutes and 30
seconds after the start of the sec
ond-round. ; - ..T...-' ;v.''"V-
ADELAIDE. Australia? Jan. 29.
-(Saturday l-CTV-Don Budge,.Am-
erican tennis champion, defeated
Jack Br omwlch,. young Australian
star, 6-4, 6-2, 6-1, to win the Aus
tralian singles title today;
Huge Defense .
Outlay Urged
By Roosevelt
Billion More for Naval
Building and Army's
. Expansion Sought
Much 'Praise, Also Sharp
Criticism Evoked by
8-Point Program
WASHINGTON, Jan. 2 8-()-A
presidential request for the broad
est expansion of the army and
navy in the nation's peace-time
history went today to Capitol Hill,
where it encountered much ap
proval and some sharp criticism.
Declaring the armed forces "in
adequate for purposes of national
security," Mr. Roosevelt recom
mended, among other things, a 20
per cent increase in the navy
building program at a cost esti
mated by navy officers at $800,
000,000. While many legislators called
the recommendations "modest."
"very good" and "very wise," oth
er statements indicated that sen
ate debate would explore all
phases. of the Roosevelt foreign
policy.
"What is the foreign policy
which must lead us Into the very
maelstrom which the president
condemns?" asked Senator Van
denberg (R-Rich).
Mr. Roosevelt placed the re
sponsibility for his request "sPe
(Turn to Page 2, Col. 1)
Grain Rates Case
Brought to Close
Memoranda and Argument
to CpmV Later Judge
Gets Reading Job'
. . Presentation of evidence In the
grain' rate case involving four ma
jor railroads and 65 Oregon grain
shippers was completed yesterday
before Circuit Judge L. G. Lew-
ell ing and the matter continued
for presentation of memoranda,
The only additional matters en
tered were some old public service
commission orders by the plain
tiff railroads, and a copy of a
North Pacific rate bureau tariff,
presented by William P. Ellis, at
torney representing the shippers
The suit was brought by the
OWR&N, Southern Pacific, Great
Northern and Northern Pacific
against the utilities commissioner
to upset an order which declared
certain rate practice unjust and
set up reparations totaling some
$260,000. The shippers are de
fending along with the utilities
commissioner.
Faced with some 10,000 pages
of documentary and testimony
matter previously presented be
fore the utilities commissioner.
Judge Lewelling requested the at
torneys to stipulate as to the con
trolling facts on either side of the
case.
Oral arguments will be given
later.
Indian Convicted
Of Manslaughter
MEDFORD', Jan. 28.-(flVLeon
ard Godowa, 28, Klamath Indian,
was convicted yesterday of invol
untary manslaughter in connec
tion with the shotgun death of
William Truan, white cowboy.
near Beatty. and sentenced to
three years in McNeil Island fed
eral penitentiary.
Godowa was indicted by a fed
eral grand jury on a charge of sec
ond degree murder. The defense
asserted the shooting was acci
dental. Mass Ordered to
Plead February 1
OREGON CITY, Jan. 28-(ff-Judge
Arlle Walker instructed
Sheriff E. T. Mass, Deputy How
ard Mass," his son, and Deputy
Jessie Paddock to enter pleas
February 1 on indictments charg
ing larceny of public funds.
The judge overruled demurrers.
The charges alleged approximate
ly 8 4 1,0 0 0 was involved.
Remote Pinball Machines
At Astoria; May Return
As Devices of Amusement
ASTORIA, Jan. 28-iflVPinball
machines were removed from As
toria establishments today follow
ing a warning from : District At
torney Garnet I Green. Machines
may be returned after, February. 1
under a city ordinance licensing
them as novelties but forbidding
gambling or payment in coins.
30 Bourbons
Await Martin Decision;
Strayer Is Possibility
All-Aspirants for May Nomination Are Scratched;
- .Edgar W, Smith, A E. Reames, Oscar Hayter,
, Veteran State Senator Are on List
Thirty Oregon democrats
Governor Charles H. Martin scrutinizes their names, studies
endorsements and listens to
official and some officious, in
cessor to Frederick Steiwer, Oregon s junior senator whose
resignation takes effect Monday. There is every indication
that announcement of his decision O-
will be made promptly, probably
today.
Scratched from consideration
are names of aspirants for the
office at the May primaries. Not
only does the governor not want
to put himself in the place of
backing a particular candidate by
giving him the short-term ap
pointment, but he says apointee
will need to be In Washington
through the spring and early sum
mer and could not tend to his
senatorship if he were busy cam
paigning in the primaries.
The name of Senator W. H.
Strayer figured in the gossip of
the day as a possible appointee.
Strayer is dean of the upper
house, and long has been a pow
erful figure in state politics.
Highly Individualistic, at times he
clashed with Gov. Martin, but the
governor evidently overlooked
the breach because he named him
member of the new state board
of mining and geology. His
daughter, Nadine Strayer, is act
ing chairman of the democratic
state central committee.
Names regarded as eliminated
are the former Governor West,
Mayor Joseph Carson and D. O.
Hood. Others discussed in state
house lobbies were Edgar W.
Smith, Portland insurance man
and chairman, ofthe .state milk
board,' EjReames, ' Medf ord,
Oscar Hayter, Dallas.
Utilities Plan to
Spend 8 Millions
Construction Total Over
1937 Figure but Well
Below Decade Ago
Construction undertaken by
Oregon utilities during 1938 will
to figures released Friday by N.
aggregate 88,217,210, according
G. Wallace, state utiUties com
missioner. Of this amount the electric util
ities will expend 83.864,695, tele
phone utilities $3,889,350, gas
utilities 8287,880, water utilities
8138,495 and steam heating util
ities 836,790.
While these estimated budget
expenditures reflect an increase
over those for the year 1937, they
fall far short of the expenditures
made annually from 1925 to 1930
inclusive.
The major part of the funds to
be expended by the electric utili
ties will involve additions and
betterments to. their distribution
systems with minor improvements
to transmission systems and gen
erating stations.
.. Telephone utilities propose to
replace considerable central office
and state equipment The gas and
water utilities also expect to spend
the major part of their construc
tion budgets in Improving their
distribution systems.
Charles Goodman Killed
On South Santiam Route
ALBANY, Jan. 28-ff)-Charles
T. Goodman, 55, was killed today
on the Santiam highway east of
here when struck by an auto
mobile. Traffic Officer R. L.
Chandler said Goodman stepped
from behind a truck into the path
of a car driven by Ernest Stone,
Lebanon farmer.
Officer Exonerated, Fatal
Shooting of
CORVALLIS, Ore., Jan. 28-P)
A coroner's - jury exonerated
State Police Officer Aaron Dear
ing tonight in connection with the
fatal shooting of Charles A. Kir
by, 23, Pendleton, senior forestry
student at Oregon tate college.
' Klrby was peeping Into a win
dow at the home of Harold H.
Hessig, another student, early to
day when Dearlng pursued and
shot at : him, the officer , said.
Dearing returned to headquarters,
filed a report and went home. He
learned several ' hours later, that
his bullets had struck the student,
. x KIrby's - body 3 was found by
George White, a sign painter, in a
vacant lot about a block front the
Kessig home. . The . dying youth,
with a bullet wound in his shoul
der, had crawled under a clump
of bashes. " . v
Anxiously
are on the anxious seat as
the counsel of advisers, some
making selection of a suc
Wreckers Active
Says Mayor Kuhn
Some of Water Board not
Working for Interest
of City, Charges
"There are some members of the
water commission who would de
light in wrecking the system, " was
the declaration of Mayor V. E.
Kuhn at the Salem Ad club Friday
noon. "These are there for certain
purposes, not in the best interests
of the city. I am not mentioning
any names, but I urge you to do
your part in protecting this water
system which is worth a million
dollars from the standpoint of,
psychology alone."
Mayor Kuhn said he was hot a
candidate for reelection and said
that there would be 11 vacancies
on the council of 14 to be filled at
this year's elections. .
"Instead of sitting back and let
ting 'GeoTge' do it do it you fel
lows ought to get in and do your
part. The council's work in water
construction Is over with, but
don't forget that the council is the
body -to fill vacancies.
"Salem's water system is on a
sound financial basis and will pay
out in 20 years with no raise in
rates if properly managed,'.' said
the mayor who this year concludes
nine years of service as council
man and mayor.
Mayor Kuhn announced that be
fore the end of the year a plan
would he prepared to take care of
the sewer and drainage problem
for the city.
Contest of Gty
Lien Cases Seen
A demurrer and ' motions to
strike were filed in circuit court
yesterday against a City of Salem
complaint for foreclosure of 61,-
566.29 worth of improvement
liens with Lyle P. and Vivian C.
Bartholomew, George E. and Olga
M. Brown named as defendants.
The two filings indicated that the
initial contest of the city's exten
sive lien foreclosure program, be
gun last year, was impending.
The demurrer was filed on be
half of the defendants Brown. The
other motions especially demanded
that the complaint be made more
definite as to whether the im
provement Involved was alleged
to be made according to law, to
charter, to ordinance or to resolu
tion. Both pairs of defendants are
represented by Carson & Carson,
attorneys.
The city has foreclosed several
dozen street and sidewalk im
provement liens, taking Judgments
by default, in the last six months
Many other actions begun by the
city have been settled out of court
with the principle defendants
named arranging with the city
treasurer to resume making pay
ments on lien installments.
Foskett Married, Report
OAKLAND. CaliL, Jan. ii-UP)
-Friends said today William Fos
kett. 20, University of Oregon
track star and tackle, and Miss
Mary Dodge, a colonel's daughter,
were married at Reno January 1.
College Senior
. Coroner A. L. Keeney said the
shoulder wound was fatal al
though a second bullet, apparent
ly deflected from the pavement,
struck Klrby 's belt but did not
Inflict a serious wound.
Hessig reported an intruder
who peeped into the window to
police. He heard the officer shout
and fire his revolver but was. un
aware Klrby, whom he knew as a
fellow student-bat did not recog
nlxe as the loiterer at his home,
was wounded. - '-'- ' "
Klrby, one-time Umatilla coun
ty tennis champion and an Eagle
scout, was divorced about a month
ago. His former wife is employed
at Corvallis, students , said. His
parents, Mr. and Mrs. J. HT Klr
by, said funeral services would be
held at Pendleton
Pair Recently
Convicts Here
Face I Charges
William Toycen, Gilbert
Mason Held; Federal '
Case. Indicated'
Setup for Making Lead4
"Dollars" Is Raided
on Unjon Street
William A. Toycen and Gilbert
Mason, both released from the
Oregon state penitentiary wlthia
the past four months, were ar
rested by city police last night at
a house at 160 Union street on
counterfeiting : charges. A com
plete setup for counterfeiting sil
ver dollars, including molds and
other paraphernalia, was found In
the house.
Toycen was arrested first by
Sergeant Dorvald Nicholson at
about 6:30 p.m. at the house af
ter he had bees trailed there fol
lowing an alleged attempt to pass
one of the spurious coins down
town. Fifteen of the lead dollars
were found on his person at po
lice headquarters, Chief Frank
Minto said. i
Officers Overgaard, Deacon and
Nicholson collaborated in the ar
rest of Mason two hours later
when he showed up at the house.
Both men are lodged in the
city jail pending arrival of feder
al officers. i '
Mason had been out of the peni
tentiary Just two weeks and is a
three-timer. His last sentence was
from Polk county.
Toycen served a term for burg
lary not in a ; dwelling and was
sentenced from Marion county. He
was admitted to the prison Octo
ber 22, 1935 td serve a three-year-sentence
but was released on good
time credits after :two"7raY.:nv
October 22, 1937. He is also re
ported to nave; served tim in San'
Quentin prison. .-" l i ;
Boycott Effective
Mill Men Declare
PORTLAND,! Jan. 28 - (P) -While
AFL carpenters declared
their boycott of Portland's CIO
produced lumber would be inten
sified. A. E. Mcintosh, manager of
the West Oregon Lumber com
pany, said today "There is noth
ing else for us to do but go out
of business." j - ' x
-Mcintosh's imM, -which em
ployes 400 men, closed yesterday.
He blamed the boycott for stop
page of two more lumber ship-
ments at San Francisco and Red-.
wood City, Califs and declared the' '
"last loopholes in our California
markets have been stopped our
market is absolutely closed.
Other mills, which reopened re
cently after an AFL-CIO Jurisdic
tional struggle closed them la
mid-August, were closed again to
day, or operated 6a a curtailed
basis. . "
Funds in Dispute
Go to AFL Union
i MARSH FIELD," Ore., Jan. 28-(a-Clrcult
Judge J. T. Brand
ruled today that funds held in
trust by a local CIO workers un
ion were the property of the AFL
lumber: and sawmill workers un
ion local S573.
.The money, 85000, was set
aside as an irrevocable trust fund
last year by trustees who belong
ed to the CIO. The judge held
creation of the trust fund was a
subterfuge to prevent the carpen
ters union or the original ( AFL
union to which the trustees had
belonged from getting the money.
Cat and Dog Hospital '
Owner Wings Burglar
PORTLAND, Jan. 28.-fl-A
blood stained pavement provided
evidence of Hiram Pierson'i
marksmanship. He shot at a man
who attempted to break Into his
cat and dog hospital early today.
Ho ffman new Head of
- Shippers at Portland
. PORTLAND, Jan. 28-;P)-Tbe
Portland Steamship Operators as
sociation elected Larry J. Hoff-
man, executive of the Kinney
Shipping company, president.
B
ALL AD E
of TODAy
Eleven months In Wash ins
ton, a' paycheck fairly' sizable,
to be addressed as "Senator,"
an honor highly prizable, all
this awaits some democrat
the , governor, will make the
choice -" so dozens of them
strain their ears and listen for
"their-master's voice." r