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. .