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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 3, 1938)
Weather Occasional rain today and Friday, temperature nn rhanyd; Max. Temp. Wed nesday 49, Mln 33, river 5.6 feet, rain .29 Inch, S-SW wind. Art Appreciation Hundreds f Statesman readers have taken advan take of this newspaper's offer of 48 reproductions of famous paintings. POUNDDD 1651 EltSHTY-SEVENTH YEAR Salem, Oregon, Thursday Morning, February 3, 1938 Price 3c; Newsstands 5c No. 263 MMM May Block Mill Men's AFL Choke Worrell iAiM -for Oregon Flax Business Men As 'Whitewash' Frameup" Charge Heard in House; Confusion Reigns at Meet Need of Capital Mainly Stressed ; Committees . Are Now at Work WASHINGTON, Feb. 2 -- Little business men s conierence touched off a round of republi can criticism of President Roose velt's business policies in the house today. Representative White (R-Ohio) charged the conference was a "frameup." "The report they will make was prepared a week ago," he as serted. Representative Short (R-Mo) declared the administration was seeking even a "flimsy pretext -or reasonable excuse for present economic ' conditions. He said it was "singing a hymn of hate which -had divided labor and was now trying .to divide business. A remark by Short that Pres Ident Roosevelt is the "smooth est, fclickest politician" ever to live In the White House brought forth cheers and prolonged ap plause from democratic members. 'WAfeHINGTdN. Feb. 2-P)-A tLousand "little businessmen," each with a speech to make, met today to tell the Roosevelt ad ministration how . to end the re cession, and all tried to talk at once. .- Quickly they demonstrated they had come to Washington to be heard and not to listen." The re sult was tumult scores seeking recognition. The scene rivaled the more fr en lied . moments of a national political convention. It was, manifestly. Impossible to proceed, so Secretary of Com merce Roper seized the gavel, stilled the clamor somewhat, and dlsnersed the meeting into 10 studr groups where the effort to make many speeches at the same moment merrily continued. But individually, as Interviews disclosed, the - little - businessmen were in deadly earnest. Each had his own Ideas of what should be done, some had laboriously sur veyed ther opinion of their neigh bors. Most were mystified as to "why I was Invited to come here, why They picked me out," 1 and many were equally at a loss to know' why they found solicitous messages from their senators and congressmen waiting for them in their hotel rooms. So many and so varied were the ideas they brought.- that the day produced no noticeable crystallisation - of sentiment on any one point, unless It was that little business needs more capital and that, vaguely, some method (Turn to page 2, col. 5) a d .d i t i c o ; . . in the Nete GAINESVILLE, Ga., Feb. S-(ff5-Pet Sherlock, Jr., of At lanta recently ' turned in his 103d model automobile on new car. Before driving away he had mechanics pull the tank from the old one. They inverted it over a buck and oat poured $503.73 in sil ver dollars,' halves and quarters.- r I V gas tank makes a great ba<j Sherlock said. "It's easy tp, put the money in but plenty hard to get it out. '.GAINESVILLE, Fla., Feb. 2- (Ry-Mrs. T. D. Duncan of Gaines ville said today sne round six small pearls in the oysters served her at a president's mrtnday fcan ouet at Cedar Key Mondajr night Since the birthday banquet was held to raise funds for the na- Uonal Infantile paralysis found tlon, Mrs. Duncan gave five of . the pearls to the foundation. She ient one as a "memento. Chairman Grinnell Hughes of the banquet committee said' the five pearls were appraised as high as 1800. ' LANCASTER. Pa.. Feb. 2- (P) The county treasurer's of- wice had a puzzler toaay rrom a dog owner who described his pet as a poodle in front and a cocker spaniel in the rear. Deputy Treasurer Harry Mc Maellen said he would .write that in under the description' of -breed section of the dog li cense for which the owner ap Parley Viewed plied. V'V" ' Proposes Big Posses Search Is Feared Prey r 'if?' 4 V 4"; I Feared the prey of a mountain lion years old, was central figure of at fliiil ; : t I ' 1 ; Calif., from where the child strayed while at play. Fresh mountain lion tracks wore found in the vicinity where the child is believed to have wandered, hut searchers and biting cold. The missing boy SERA forest worker. Photo shows Ted, now 4, at right with an older brother, Joe. -UN photo. Japanese Report PengpuVCapture Hirota Admits That State of War Exists; Meet at Geneva Ends SHANGHAI, Feb. 3 - (Thurs day )-(F)-aPanese Bal today they captured Pengpu in a ter rific battle along the Tientsin- Pukow railway 90 miles south of their central China objective the vital rail junction at Suchow. Dispatches from the Japanese expeditionary force asserted the stubborn Chinese defense south of the Hwai river had collapsed and the retreat of Chinese forces was near a rout. The Chinese neiU-.er admitted nor denied the Japanese victory reports but said severe fighting was in progress south of Pengpu, the strategic Anhwei province trading city on the Tientsin-Pu- kow railroad near the Hwai river. (Japanese Foreign Minister Kaiki Hirota told the diet in To- (Turn to page 2, col 7 ) Hoover Leaves on Jaunt to Belgium PALO ALTO. Calif.. Feb. 2-tiP) -Former President Herbert Hoov er left today for New York City, en route to Belgium as the guest of that country s universities. Mr. Hoover will tour the area over which he presided as food administrator after the World war. Moorm an Starts Prison Term Of 2 Years, Forgery Charges Wilbur L.. Moorman, former state highway ;. department time keeper, was a state penitentiary Inmate last night, facing two con current two-year- sentences Im posed earlier in the day by Cir cuit Judge L. H. McMahan on charges of forgery of department time statements. - Moorman maintained the mili tary bearing to which he was trained as a World war soldier as he stood before the court with only District Attorney Lyle J. Page, Court Clerk Harland Judd and Deputy Sheriff Kenneth Ran dall present He showed no emo tion until the judge commented there appeared no background for Moorman's act In his upbring ing. A tear coursed down- the prisoner's cheek but he otherwise continued his unflinching mien. , Judge McMahan directed that the sentences, two years each oa new for Boy of 4; of Mountain Lion r 4 s 4k or cougar, tiny Ted Thompson, 4 widespread search out of Vklah, continued, despite heavy rains is the son of Charles Thompson, Oregon Men View Recession Causes Labor Peace Deemed Chief Need by Schmalz, now at Capital Parley WASHINGTON, Feb. 2-tip)-A 50-year-old millinery merchant of Portland, Ore., attending the conference of smaller business men, said today labor troubles were a major cause of the cur rent "recession" In the Pacific northwest. "Give us peace in the ranks of the laboring man," said Frederick H. Schmalz, "and we will be well on our road back to normalcy.' He added, however, that the (Turn to page 2, col. 4) Governor Pardons Man in Jail Here -Governor Charles H. Martin issued a conditional pardon Wed nesday to Al Phillips, recently fined sz&O and sentenced to a term of six months in the Marion county jail for practicing veter inary medicine without a license! The pardon was recommended by the state agricultural depart ment and Sheriff ,Burk. .. Phillips will not - be released from the county jail until he ob tains transportation for both him self and wife to California. She Is in ill health. , : Phillips will remain on proba tion for five years. two forgery charges," the mini mum under the law,' should run concurrently. . Both involved time statements made out last fall to fictitious persons and then cash ed by Moorman. J. M. Devers, state highway commission attorney, said at least S 50 00 would he recovered, from bonding companies, of the $8000 which" Highway Engineer R. H. Baldock had reported as having been lost through Moorman's op erations. Moorman had bee .- emnloved by the highway department for 11 years, ending last fall. He was arrested on the forgery charge December 15. Indicted on the two counts by the Krand iurr December 31, pleaded not guilty January is, and changed his plea to guilty January 27. He appear ed for sentence yesterday with out an attorney. ; , v F ederal Industry Fund to Build Plant May Be Added to Bill 12 Months Operation and Use of Bonneville's Power Suggested New Development Makes Prospect of Subsidy Renewal Brighter WASHINGTON, Feb. 2-(P)- George E. Farrell, AAA official who recently criticized the Oregon flax industry, wrote Senator Charles L. McNary today recom mending federal funds be pro vided to aid the industry. Farrell said money was needed to engineer a flax plant tnat would operate 12 months a year and make liberal use of Bonne ville power and power equipment. He said $25,000 should be ex pended the first year and 110,000 a year for one or two years. v Farrell said overhead and labor costs to cooperative plants were too high a n d an engineer with manufacturing experience was needed to organize production. McNary said he would offer an amendment to the agricultural appropriation bill for 125,000, provided an agreement to pay flax growers benefits in 1938 was kept. L. L. Laws, member of the state flax board and manager of the state flax industry, said Wed nesday night that Farrell's pro posal apparently was aimed at in stitution of an experimental pro gram which would overcome the difficulties which the AAA offi cial recently mentioned in oppos ing continuation of the subsidy to flax growers. An expenditure in the amount suggested would not construct a flax plant on a commercial basis to handle Oregon's output, Laws pointed out. The experimental plant would probably be built at Corvallis. Artificial methods of (Turn to page 2, col. X) Neutrality Law's Invocation Asked WASHINGTON, Feb. l-(JFi" The Japanese foreign minister's assertion a "state of war" exists between Japan and China brought renewed demands today from some congressmen for Invocation of the neutrality act. Administration leaders indi cated, however, that in the ab sence of a formal declaration of war there was little likelihood President Roosevelt would apply this act forbidding arms ship ments to belligerents. It was pointed out Koki Hiro ta, the Japanese minister, had made his remark Informally while answering a question in the Japanese diet. "It seems to me," said Senator Nye (R-ND), "that there Is no post left to hide behind for. not Invoking the (neutrality) law. Others who previously had de manded application of the act ex pressed a similar view. North Santiam Is County Engineer N.C. Hubbs yesterday expressed surprise at reports the North Santiam high way had been blanketed under five feet of snow because, he said, the highway is open throughout. Road Foreman J. M. Bewley of Detroit advised Hubbs he had en countered only four Inches of snow In the last few days while operating the county snowplows over the road from Detroit to the new Santiam river bridge. The highway department is keeping the road clear beyond that point. Schneider Named To State Senate PORTLAND, Feb. '-flVCWf-f ord G. Schneider, Portland law yer and democrat, was named by the 'Multnomah county commis sioners today- to succeed State Senator Thomas P. Graham, Jr., who resigned to become a nation al labor relations board attorney. John Beckman, chairman of the county democratic central com mittee, recommended Schneider, who will serve until the November election. Farm Measure Little Revised In Final Form Conference Committee's Work Is Completed; Passage Expected Ever Normal Granary Basis; Under Debate for Entire Month WASHINGTON, Feb. Z-(ff)-A senate-house committee agreed late today on details of the "ever normal granary" bill, providing a vast system for controlling pro duction and marketing of cotton, wheat, corn, tobacco and rice in an effort to stabilize prices. Conferees said general provi sions for corn, wheat, rice and to bacco were not altered during fi nal sessions of the conference committee, which has been busy since January 3 drafting a single bill from the separate measures passed by house and senate com mittee members said they expect ed the fruit of their labors would be subject to some criticism when the measure goes back to senate and house for final approval. The program establishes defi nite supply levels for the five crops and attempts to control pro duction and marketing through a system of benefit payments, loans on stored supplies, and penalties for excess sales when supplies are large. Secretary Will Split Up Acreage Tne secretary or agriculture will estimate the production of corn, wheat or other crops needed (Turn to page 3, col. 1) Two Projects for Salem Given Okeli $23,410 for new Pavilion at State Fair; Library Indexing Approved WASHINGTON, Feb. 2-(JP)-Projects calling for the expendi ture of more than $25,000 at Sa lem have been approved by the WPA In awarding $122,146 to Oregon, Senator McNary (R-Ore) said today. The Salem projects were $23,410 for an additional beef and cattle pavilion at the fair grounds and $2,844 for library indexing. The $23,410 state fair project mentioned by Senator McNary represents an additional grant to ward construction of the total of eight new units being added to the new cattle pavilion at the state fairgrounds this year, Leo Spltzbart, assistant fair director, said last night. When the new units are completed the pavilion will have a capacity of 1000 head of cattle and 200 hogs. Each of the units, of which (Turn to page 2, col. 6) Public Power Aid Begins Next Week WASHINGTON, Feb. l-(JP)- Tne government will start pour ing out millions of dollars next week on its long-delayed munlcl pal power program. PWA Administrator ; Ickes an nounced today the first $1,000,- 000 or fwa grants would go forward in a single voucher to Memphis, Tenn.. on Wednesday as an initial federal contribution to the city's mammoth electrical distribution system. Thereafter, in rapid succession he said, public works admlnistra tlon loans and grants on 61 pub lic power projects In 21 states would put a total of $146,917,808 to work producing one man-hour of labor for each dollar spent. Portlander Elected PORTLAND, Feb. 2. -tiPV-The Pacific Coast Metal Trades council elected E. A. Densmore, president of the Portland Metal Trades council, its president at the first annual convention today. . ulletin SAN DIEGO. Calif.. Feb. S- ITbnrsday) -JPy- Two Ban Diego-based flying boats opera! tng with the fleet in maneuvers 70 . miles southwest of Point Lorna - crashed about 8:37 o'clock last night, and four of the 14 men ab oard the two planes were rescued, it was an nounced by the commander of aircraft scooting forces. Those rescued were picked Bp by the CSS Tennessee. All available vessels were ordered to join in the search for the miss ins; members of the two crews. B Storm Comes Quickly To Prove Groundhog's Prediction Is Correct Marmot Sees His Shadow Late in Day; Winter Prolonged by new Snow, Rain, Wind; Eastern Lodges All Agree Smack on the heels of Groundhog day, 1938 the little animal saw his shadow twice yesterday came the storm. Cold rain and a gusty wind that playfully buffeted midnight motorists and everything else at loose on the streets ushered out a day that gave the groundhog two opportunities to see he shadow that, says legend, O Wright's Story Is Under State Fire 'remeditation Proof Aim of Grueling Attack by Prosecutor LOS ANGELES, Feb. 2-- Prosecutor Ernest Roll drove Paul A. Wright, slender, delicate former airport president, into a state of collapse today- at his trial on charges of murdering his wife and friend, John Kimmel. In badgering, hair-splitting cross-examination. Roll hauled Wright again and again over de tails of his story that he shot Mrs. Wright, and Kimmel upon finding them at 4 a. m., on a grand piano bench at the Wright home, embracing under unusual circumstances. Wright collapsed once this aft ernoon and, unable to continue. had a bailiff vigorously chafe and rub his pale hands. A special re cess was called and Wright was assisted, by the arm from the stand. Returning 15 minutes later, he wept and sobbed at several points. so that by the regular afternoon recess, he was again near col lapse, and was led from the court room. At the end of today's ses sion, however, he seemed to have regained his composure. Bat he was pale and taut. Roll asked questions in terms of split-second distance by feet. Then he would rephase and ask them again. Defense Atty. Jerry Giesler, (Turn to page 2, col. 1) Goering May Get Military Office In Wbich Case Cleanup Is Feared; Blomberg out Due to Marriage BERLIN, Feb. 2-i5VCol. Gen. Hermann Wilhelm Goering, num ber two nasi leader, stood out to night as the expected successor to Marshal Werner von Blomberg as minister of war. The cabinet held a three-hour session in the early evening but no announcement was made Im mediately. Von Blomberg was said by a re liable informant to have resigned Friday before 'eaving for a hon eymoon with -his 28-year-old bride, the former Erika Gruhn. (The Von Blombergs have been (Turn to page 2, col. 2) Manager Becomes Empire President PORTLAND, Feb. 2-)-R. B. Ambrose, Portland Woolen Mills sales manager, succeeded C. B. Van Houten, paint company ex ecutive, as president of the Colum bia Empire Industries, Inc., today. Robert R. McKean .was reelected first vice president: Dr. Lief Un derdahl, second vice president; and Charles E. Cassel, secretary treasurer. - Third Degree Charge Sought Against Police, Labor Cases PORTLAND, Feb. 2 Charles W. Robison, labor" law yer, sought assault and battery warrants today against police al leged to have used third degree methods in securing confessions from men held in a drive on labor terrorists. The motion, vigorously oppos ed by District Attorney James Bain, - was taken under advise ment by Circuit Judge Louis P. Hewitt. : ... ' Robison acted under an ob scure statute and demanded Judge Hewitt allow him to can witnesses to prove the men were beaten. Detective CapL James J. Kee gan said James A. "Tiny" Dawes, 23 296-pound teamster, had con fessed smashing windows in two beer parlors and damaging, ser vice station equipment. He de clared he was given f 10, which Briefly at Noon and Again means winter is to last six weeks longer. The day, for the most part cloudy, was broken by 10 minutes of sunshine around noon and an other brief period of brightness late in the afternoon. GOBBLERS KNOB. Punxsu tawney, Pa., Feb. 2-)-The na tion is in for six more weeks of winter underwear and coal bills so says the groundhog. Those who take their ground hogging without salt, could see it no other way today when rival lodges at. Pennsylvania's famed Gobblers Kbob, Quarryville and down in the Lehigh valley turned up with the same prediction. It took no hair-line judgment to make the forecasts this year at (Turn to page 2, col. 5) Major Gangsters Captured in Raid 'Dixie" Davis, Weinberg Arrested, Said Heirs to . Scbultz Racket PHILADELPHIA, Feb. 2--Detectlves."' following- the trail of a red haired showgirl, captured In a smashing raid today two men described as heirs to the $100,000,000 lottery racket of New York's Dutch Schultz. Led by Charles P. Grimes, as sistant to District Attorney Thom as E. Dewey, a squad broke down the door in an apartment occu pied by Hope Dare and arrested J. Richard "Dixie" Davla and George Weinberg. Davis was at torney for Arthur "Dutch Schultz" Flegenhelmer who was shot down in a Newark restau rant two years ago. The men were held in $300, 000 hall each after Grimes de scribed them as "the two high est remaining members of the Dutch Schults mob who carried on Schultz' activities after his death." "Davis has already testified,' Grimes said, "they have been do ing $10.0,000,000 a year." He asked Magistrate Nathan Biefel to fix bail at $500,000. Capitol May Be Occupied June 1 The new state capltol building will be completed and ready for occupancy not later than June 1, Dr. Ernest C. Dalton, member of the capltol reconstruction com mission, yesterday advised Gov ernor Charles H. Martin. It previously was announced that the building would be com pleted July 1. As soon as the new structure is occupied a number of state departments, now located down town, will be transferred to the state office building, replacing those moving into the capltol. ' Hearing Speeded up COQU1LLE, Feb. 2-fls-Mapes Davidson, National Labor Rela tions board examiner, ordered night sessions today in an effort to complete hearing on CIO charges against the Smith Wood Products company by Monday. he divided with a companion. Charles - LeRoy Henderson, held on seven charges under $40,000 bond. : , . Previous alleged confessions In cluded beataps, attempted bomb ings and window smaahlngs. Captain Keegan said two men were taken into custody today and police were searching for three more. Including a high union of ficial, who were alleged to have been Implicated by confessions. . Of 34 men held for question ing, nine were released. Includ ing Af Spina and Frankie Gal- luccL professional fighters. Spina declared he was raid from $4 to $10 a day to act as a picket and member of the teamsters onion, although he paid no dues. Judge Hewitt refused to reduce bail for six of eight men held, declaring $5,000 for each charge (Tarn to page 2. col, 1) - HoDe to Probe : 1 Charges Filed Against Jones Carson Challenges Right to Bo so; Claims Men may Change Minds Certification IsT Cited- by Official as CIO Claims Coercion SEATTLE, Feb. 2-(P)-RegioBal Director Charles W. Hope said to- night the National Labor Rela tions board would Investigate as soon as possible charges he said were filed yesterday against the Jones Lumber Co., of Portland after employes there bolted the CIO and reaffiliated with the AFL. Hope said the board "will take whatever action the investigation warrants." He declined to disclose details of the charges, or to re lease a telegram sent to Morris Jones, head of the lumber mill. Hope said the labor board had certified the CIO lumber union as the sole bargaining agency for the employes and he had "receiv ed no evidence -to the contrary. "Therefore," he said, "it is the duty of the employer to deal with that (CIO) union." PORTLAND, Feb. 2-fcip)-Mayor Joseph K. Carson, elated by a break in the sawmill boycott yes terday when Jones Lumber com pany employes bolted from the CIO to the AFL. challenged the National Labor Relations board's authority to file charges against the mill. Charles W. Hope, regional NLRB director, said at Seattle the mill and the AFL had been charg- t ed with coercion and intimidation. 1 "The Jones men had do contract i 41.... - t.Vr A'A... 1 auu tucj unii?. n 115111 iu, luouo tneir mmas any aay or twice a : day," Carson declared. "They will get protection. When a majority indicates what it wants and that's the law I'll protect It." Frank Chapman, AFL, official -who presented a reaff illation, charter to the Jones group, as- -sailed the CIO move to bring the 1 NLRB back into the Portland lam- ber scene.' "Hope can come down here and throw the men out of work If he wants to, but he can't put this company back on the AFL fair list if he does so," Chapman said. That can be done only by the men themselves, as the Jones workers did last night. Morris Jones, head of the com pany, said lumber orders increas- ; ed 25 per cent and deliveries It per cent in the first 24 hoars after the boycott, applied August 14, 1937, to all major sawmills when they joined the CIO, was lifted from his plant. In a press statement, the CIO , Lumber Workersnnion said It was ' "not troubled by this latest play ' of the AFL and employer groap." ' It declared "it will take more by . far than a company union move ment . . .to face our solidarity. Reaff illation of the Jones mem with the AFL was termed an "tin important Incident." Despite AFL predictions tnat other sawmill groups would follow - the lead of the Jones men, no ac tion was taken today. Green "Indicted By Mine Workers WASHINGTON, Feb. . t-iJPf-The United Mine Workers' con vention, acting as a grand jary, indicted William Green today oa charges of "treason. The convention then directed -the union's executive board to give the AFL president a hear- . Ing, and to expel him from: tha DMW if he were found guilty. Union officials had talked of asking , the convention to expel Green without further to-do, bat they decided in favor of today's action after Green challenged too riglit of the convention to act as an original trial court. (Green was charged with trea son after he signed an AFL char ter for the Progressive Miners ef America, rival of the UMW Is Illinois. Shoe Repair Strike Ends . PORTLAND, Feb. 2-ipy-Fif ty flve striking Boot and Shoo Workers' union members reacked a settlement with seven shoo re pair shops tonight It provided an Increase of $1.50 daily begin ning June 1, or arbitration as an alternative!, J . B A L L A D E of TOD Ay By R. C : The groundhog saw his shad ow yesterday a fact for fu ture weather. Inauspicious; for spring, it means a full six weeks delay that is, if yon are slightly superstitions. .