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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 19, 1938)
Weather Rain today and probably Bandar, temperature on changed; Max. Temp. Fri day 49, Min. 42, river 14.3 feet, rain 1.54 inches, SW Wind. Tounra'ment News . Basketball fans-will find the most complete coverage of the state tournament in The Statesman and read it -hours ahead. " POUNDDD 1651 EIGHT Y-SEYKNTH Y KAK Salem, Oregon, Saturday Morning, March 19, 1938 Price 3c; Newsstands 5c - . . . - - c f. - WSJ (janaBssmna eaapnanna ' ennana V4 ' ' ' ' ' ' Oil Holdings Mexico Expropriates .Foreign Mtmtmomd Baker Mm B School Gets To Last Round Twice in Row Giesy:Is-Hero of Upset; Mac Higlr'Edged out by 27-24 Score; : East Oregon's Bulldogs Beat Saints 26-10,, Defensive Duel . YESTERDAY'S SCORES Wood burn 32, Thurston 27. K. Falls 31, Eugene 28. Amity 27, Mac HI 24. University 49, Chlloquin 25. Medford 35viSandy 28. Baker 26, St. Helens 10. TODAY'S GAMES 9:30 a.m. Woodburn vs. Klam ath Falls. (For 5th and 8th place) 10:30 a. m. University vs. Med ford. 4 (For 4th and 7th place) 7:30 p.m. Mac " Hi vs. St. Helens; . (For 3rd and 6th place) 8:30 p. m. Amity ' vs. Baker. (For state OSHSAA title) By RON GEMMELL - Amity, as a word, means tar mony and friendliness, but to the whole Willamette valley in gen eral, and the 400 inhabitants of the town and 140 students In the school - in particular, it means hope for a valley-bred state high school basketball championship. For, by virtue-of. their 27-24 blanket finish, victory o V r Hc Loughliri -high of Milton-Fre.-water ' last, night, the Amitys plummeted into the championship final tonight against the Bakers, who "out-preclsloned" the Saints of St. Helens by a 26-10 score.. It is the second successive year that the "B" champion has gone Into the finals, little Bellfountain having accomplished not only that feat last year, but winning of the title as welL Fans Wondering Can History Repeat Can It be done again? That was the question that hovered on the lips of the capacity crowd last night after it had watched the Amitys come from behind In the final three minutes to whip the Pioneers, and the Bulldogs open their scoring bag In the final -half of their game to soundly thresh the Saints. Is It possible, they wondered, for a little, out-of-the-way "B" school to come through for the second successive year to bang up (Turn to page 7. coL 8) d d itics .. . . in the Neu$ HUSTLE, Va., March 18-05)-Smithsonian Institution paleon tologists today described the ver tebrae and akull of a prehistoric mammal found on a farm near hereas those of a cetothere, a pre historic whale. - Dr. C W. Gilmore and a Dr. Kellogg, Smithsonian representa tives who came 'here to view the bones, said the cetothere was ap proximately three " million years Old and quite rare."' ' . The eight-foot long head was mnearthed yesterday by diggers employed by Barbee Spindle, Jr., Hustle postmaster. KANSAS CITY, March 1-(JPy-Lercy Prints, Hollywood director who at oe time Inci dentally "produced floor shows for Al Capone, can tell lot . about what a girl has stored In her brain by looking at v her XeeC ' - v The xnotkta picture director, topping here on his way hack" west alter a visit to St. Joseph, Moaid, InteUlgent girls lift' i their feet high when walking. Self conscious girls' walk tim idly with . mineinc. . nncertain acepm.. A slow gracetml walk us ually weans a refined, cnltnred - type. ' i-- " ' - . ' . . He recalled ataglaaj big re .aes la Chicago la problbitloav ;days for- Al Capoae's peraeaal . enjoyment, : -... ; . COFFBYVILLE, Kaa, March . 18--CorreyTiUe residents have been drinking salt water all week and don't like 1L ' - Eo on March 21 the city offi cials, - Joined by . Kansas state board - of health representatives, will tour nearby oil fields to find the source of chloride pollution that has Impaired all city water supplies along the Verdigris river recently. , Not: only has the water ' here tasted salty in recent days but the exeesslve hardness - jeopardiz ed boilers, of industries and trans portation lines and caused a halt In operations In certain processes at the Ozark Smelting -esmpany plant : '.H 1 - 5v THEY ' 'is P r - - w st g 1 Li - - - r t Ibove, the Saints of St. Helens. From left, front row, Lampa, Daggett, Harper, Coach Eddie Frantz, Ket el and Tnsten. Back row, I. Hamilton, E. Hamilton and Hiatt. Below, Mac-Hi of Mllton-Freewater. Front row, Caldwell, Tanse, Nelson, Daggan. Yaatls and Coach Rufus 1 Fox. Back row. Manager Boss Basmnsfien, Patterson, Fox, Eiffert, Owlngs and Overturf. These teams play at 7:80 tonight with third and sixth place honors at stake. Morgan Is Under White House Fire Sends in Details Backing up "Bad Faith" Claim in Case of Berry WASHINGTON, March !&-(&)-President Roosevelt ' brusquely cave Chairman Arthur E. Mor gan of the TV A 72 hoars today to decide whether he would an swer questions in a presidential investigation of the bitter charges that have reduced mighty TVA to two quarreling camps. The chief executive delivered this ultimatum at the conclusion of the second session of a hear ing on the accusations. During the session Morgan clung to his position that only a congression al investigation could reach all the facts. While he modified his atti tude to the extent of presenting a bill of particulars to support his accusation that Vice Chair man Hareourt A. Morgan and Di rector" David E. . Lilienthal bad knowledge of "bad faith" -m the Berry marble claims case, he otherwise declared himself not a participant. in the inquiry. The president's i-ritation at this attitude showed plainly In the mimeographed transcript of the proceedings which the White House distributed to the press. "On the face of the record as it stands today," Mr. Roosevelt asserted, "the charges of the other directors that - Chatrman Morgan has obstructed and sab otaged the work of the Tennessee (Turn to page 2, col. i) Water System :. Salem's. ; manicipal - water sys tem earned a net profit "of $ 3 2, 2li.l4durlngli3?; despite; the fact , It - was. engaged Jn a heavy construction program and -ItB bond interest charges were 221, 834.17 higher than in 1931, Man ager Cnyler VanPatten reported to; the water commission last night, The annual balance statement evaluated the system's assets at $2,307,872.83 land its total sur plus over liabilities at $81,103.29. Bonds sold to finance purchase and - construction . of the system accounted for - $2,200,000 of the liabilities' and necessitated pay ment of $71,(91.98 in Interest. -" Gross receipts for the year to taled $198,182.49, of which $130, 052.78 came. from metered resi dential sales'' of "water. - Metered TONIGHT FOR THIRD PLACE ITBTTi if Hi 9 4s: $97,000 in City Refunding Bonds Called in Early Notable improvement In the rate of payment of street assess ments has enabled the city of Sa lem to call In $97,000 worth of refunding bonds well ahead of schedule and will result In a great saving in Interest, City Treasurer Paul H. Hauser said Friday. These refunding bonds were Is sued in 1935 because of delin quency on the part of many property owners in paying their street assessments. The bonds to be retired are numbered 34 to 130,, inclusive, and will he re deemed on or after April 15. In terest stops on that date. ' The . bonds were scheduled to be retired on dates extending from April 15, 1939, to the same date in 1945. Boards Will Talk Power Plant Deal Three Salem water commission ers, Dr. O. A. Olson, E. B. Grab- enhorst and J. M. RIckman, will meet with the Salem school board Tuesday night to discuss a pro posal that the school system take over the water department's hy droelectric plant on the mill stream. The commission decided to delay action on a suggested lease agreement with the Port land General Electric company pending a possible ; arrangement with the school directors. (Turn to; page 2, col. 3) Earns Profit commercial sales .brought in $39,- 333.88, metered-industrial sales $12,731.50 . and v new services $4438.(1. , Deduction of $87,997.41 in op erating expenses for the year left a net operating profit of $1 10, 185.08. These expenses included $32,253.18 for transmission and distribution. $2(,44(.19 for pump ing, $4936.44 for source of sup Ply. $4296.12 for purification and $2e,5.48 for general items. The net. operating profit before de ducting depreciationwas ,13l,-7M.1T.--,, ,h:.:v,-.!:. In a supplementary statement Manager VanPatten ; reported that at the dose of, the year the department carried only $233.44 in bad debts and $47,8.55 In de linquent accounts on - Its hooks. The bad debt total for 1937 alone was $30.9$.' - v-k. amTowrney 5 i r Grand Jury Hears Relief Complaints Constable Adams, L. Sweet Believed Witnesses in new Probe The Marion county grand Jury spent three hours yesterday after noon listening to complaints of witnesses concerning the manner in which relief is bandied at the county relief offices, then ad Journey until 10 a. m. Monday. C. A. Sprague, who was to have been among Friday's, witnesses In the relief probe, was called out of the city but will appear before the grand jury when It resumes its Investigation. Following several witnesses be lieved to be recipients of or appli cants for relief, Lloyd M. Sweet former SERA engineer, was the last person to enter the Jury room in connection with the relief query, It " was believed. Sweet through leadership in organiza tions operating here a few years ago with the avowed purpose of assisting relief "clients" in mak ing . their i needs known and through personal contacts of the same nature since that time, was believed to have told the jurors of injustices he claims he has found to exist in the relief setup : The last witness of the day be fore the grand jury apparently was Earl Adams, constable for the (Turn to page 2, col. 2) Youth Wanted in Portland Gausht Alford Dumbar, 19, wanted In Portland on a felony charge, was arrested by Officer Overgard of the Salem police eaily this. morn ing. After trailing, two youths last night, Overgard 'found" Dumbar hiding , in ' ,ahl automobile at Shrock's naed car lot. -'- " The : nature : of . : the ... Portland charge waa not known, but. ball was set at $2000, Salem police were advised. . Dumbar will be held here . for Investigation of his . activities In Salem before being turned over to. Portland authorities, it was announced. John Prentiss Dies V NEW YORK. March it(ff)r John W. Prentiss, (2, the Invest ment banking-specialist who three times offered Henry, Ford a bil lion dollars for his 'properties, only to be turned down; died to-: day et a 'heart' ailment; - Finals Roads Blocked On Coast With More Rain Due Corvallis-Newport Route Is Cleared; Coquille Stretch Is Closed Shipping Hampered, but Benefit to Farmers' Prospects Seen (By the Associated Press) Rivers swept unward. traffic was hamnered and nrecinitation marks rose above normal through out Oregon today as winter answered a curtain call with wind, rain and snow. The coast highway between Co quille and Banddn remained closed for a third day with four feet of water over the road. The coast hiehwav wan hlncked also bv a 100-vard slide 20 miles south of Gold Beach, and several slides to the north made one-way traffic necessary. Side roads were nearly all blocked. Rainfall in the area was estimated at more than (Turn to page 2, col. 2) Demurrer Upheld In Case of Henry Indictment Is Dismissed, Matter Resubmitted to Polls? Grand Jury ' " DALLAS, March 18-yP)-Cir cult Judge Arlie G. Walker to day dismissed the indictment recently issued charging Leslie L. "Slim" Henry, Salem Building Trades council business agent. with attempting to coerce a per son to join a labor union, after Henry's attorneys had demur red to the charge. The court or dered the matter resubmitted to the grand jury. The attorneys. Roy R. Hewitt and Edwin C. Goodenough of Salem, based their demurrer, which the court sustained, on assertions that the Indictment did not contain facts sufficient to constitute a crime and that the threat charged was made to John S. Friesen, proprietor of the Salem Box company, and not to one of his employes. "There has been no indica tion that any direct threat has ever been made to employes or ever any Intention of it," Hewitt asserted. Dist. Atty. Bruce Spaulding said he would submit the dis missed Indictment to his special assistant prosecutor, Oscar Hay ter, before -a decision would be made as to an effort to rein dict Henry. The grand Jury itself last month withdrew an indictment charging Henry with arson. The latter was reindicted on the coer cion charge and subsequently re leased on $1000 ban in lieu of the $50,000 sum previously set Quest of Russian Fliers Abandoned FAIRBANKS, Alaska. March 18-(PV-M. B. Bellakov, Russian government representative, to day announced abandonment of the search for Siglsmund Levan effsky and fire comranions, miss ing since August 12 on a trans- polar flight to the US. He said Sir Hubert Wilkins. employed for aerial searches, had left his , Aklavik, NWT base for Edmonton en route to the US, and the extensive wireless and weather reporting system inaugurated for the long but fruitless hunt was abandoned Bellakov said he will go to, his embassy at .Washington to report, and that any. further searches win be outside the Alas ka; area. . - - 1 Late Sports PORTIzAND. March It. -Ph Johnny Sham way, -. lit. . Powell Butte, Ore, won a 10-ronnd de cision over ' Jack. Hibbard, 185, Klamath Falls, in a mala event fight here tonight. , - -: Other 'results: Johnny - Pasco, 143, Los Angeles, and Eddy HalU gan, ISC, Oakland, , 10-ronnd draw; Johnny Hall, 141, Seattle, first round knockout over Eddie Norris,' 143, Portland; - JJuddy Peterson, ;181, ; Portland,;, four round decision over Chuck, Rosey, 15 4, - Aberdeen ; Powder Proctor, 135, Portland, four-round deci sion over Al Mustola, 131; Clats- kanle.9-T- H -.1 -- :; -v v V Czech-German Tension Eased By Concession Self-Rule for Districts With Nazi Majorities Believed Answer Polish Troops Threaten Lithuania; Hitler's Policy Announced WARSAW, March 19 -(P)-Xewspaper reports today said the Polish fleet had left Gydnia, Poland's Baltic port, and sailed northeastward toward the Lith uanian coast. The widely-read Illustrowany Knrjerek of Krakow said a number of units of the fleet, which consists of 22 vessels in cluding four speedy destroyers and five torpedo boats, left last night. Polish cavalry, infantry, ar tillery and motor units mean while moved Into the Wilno district on the Lithuanian bor der, and a majority of Polish newspapers appeared this morn ing with streaming headlines which declared: "The day will decide wheth er we have peace or war." P A R A H A, Szecholsovakla, March 19- (Saturday) ;p)-Full- est autonomy for Germans in Czechoslovakia came nearer real ization today when the cabinet council decided German districts are to be administered by German nationals. (Pro-Nazi Czech-Germans have demanded self rule for Czecho slovakia's 3,500,000 of - German descent. Last night Reichsfuehr- er Adolf Hitler of Germany in a speech to the reichstag held up Austria's, tae as a, ..warning, to Czechoslovakia.) The cabinet eouncirs step was taken as a sequel to an earlier government order granting Ger mans 22 per cent of administra tive posts, that being the propor tion of Germans to the total pop ulation. LONDON, March I8-6TV-P0I- ish troops massed menacingly to night on the frontier of little (Turn to page 2, col. 1) PGE's President Pledges Dam Aid Griffith Asks 'Reasonable Zoning9 and Hopes to See Power Soon PORTLAND, March 18-UP)- Franklin T. Griffith, president of the Portland Electric Power com pany, pledged cooperation today in the development of Columbia river power and said he hoped to see the Bonneville project in production as soon as possible. He favored a "reasonable zon ing" In the establishment of rates in testimony at a hearing con ducted by J. D. Ross, Bonneville dam administrator. Formation of an Oregon, Wash- ington and Idaho organization to an(i winter streets Friday night, protect the beauties of the Colum-. the raachine crashed Into three bit River Gorge against industri-! parked cars before It stopped, alization was recommended hyMrB Sawyer suffered bruises Samnel Lancaster, a civil en gin-, which required treatment by the eer identified with the construe-! first aid car crew, but did not tlon of the Columbia River high- go to a hospital, way. . Margaret Reinauldt, 2009 South Representatives of a proposed church street, was taken to the seven-county public power district tlrt station for treatment by in Oregon favored a blanket rate ,R0y Hutchlngs whose car struck for Bonneville energy. Another : her about 9 o'clock last nifeht witness urged distribution through at Church and Ohemeketa. She public districts over existing transmission systems. The hearing ended a series of eight held by Ross in the north west preliminary to setting up a rate structure for the project, to he submitted to the federal power commission. . Creeks Rise, Damage Shelton Ditch ; Is Possible Predicted additional rains to day and probably1 Sunday last night"" gave threat of property damage along Shelton ditch for the second time' this winter and of a continued rise' in the Wil lamette, river. - - 4 ' The river at mldnighf stood at 15.S feet, a gain of ;S foot from C p. m.- and et 1.8 feet from ' 1 a. m. The weather bureau fore cast a crest of 1? feet tor tonight .Water at the confluence of Shelton ditch, and Prlngle creek In the old municipal ' auto camp grounds rose nearly three feet between 2 p. m. and midnight. At the latter hour a foot addi tional rise would have sent water lapping , at Cottage, street at Bel levue and would - have started a trickle of water across the deck of the main Winter street bridge. A survey of the southeast Sa lem lowland? showed no - 1mm e- Seizure Announced Susp ter u Called by Nationalization of Huge Industry Is Planned; Indemnification to Be Made, Mexican Foreign Exchange Operations Halted at Same Time; Recent Award of Arbitrators Dispute Basis MEXICO CITY, March 19 (Saturday) (AP) Ths Mexican government today expropriated foreign oil holdings under decree of President Lazaro Cardenas. At the same time, the $400,000,000 industry was hit by a "suspension of operations" called by the oil workers' union a few hours before the president's drastic move was announced. - This "suspension" went into effect , one minute past midnight. . One of the first major results of the expropriation was announcement by the Bank of Mexico that operations in foreign exchange were suspended. There was much specu- - Ledford Defense Testimony Given Minister Was Called in to Pray for 111 Children; Spray Gets Mention ST. HELENS, Ore., March 18. -(J-Mrs. Agnes Joan Ledford, 35, -iUnd confined Ao a cpt in the juage'a chambers today t her 'trial or the poison' death of her stepdaughter, heard Ed Suckow, Yankton WPA worker, testify a cloud of spray from a potato field made him "feel bum." The defense', has contended Ruth Ledford, 13, for whose death Mrs. Ledford is on trial, and Dorothy, 15, died from eating blackberries oyer which the spray had blown. Suckow testified he passed the berry patch where the girls were aUeged to have been poisoned on August 11, while Clyde Watson was spraying his. potato field. Another neighbor, David Sor ber, testified he saw Watson spray the field again on August 27, the day the girls .were alleged to have become ill from eating the berries. The Rev. Gordon F. McKean, Columbia City, testified George Ledford, father of the girls, asked him and his wife to pray for the girls because they were ill. On August 28, he said they were, at (Turn to page 2, col. 4) . Auto Runs Amok As Driver Faints When Mrs. J. S. Sawyer of Timber, Ore., fainted while driv Iflr her automobile near Marion was later treated by . physician for cuts on the forehead. . Rase Rushell, aged 1, suffer ed burns on the band when she fell against a stove at her home, 740 Highland, and the, first aid car answered a call to dress the wound. .-,-j " . dlate threat of flooding there bat further serious- erosion appeared likely ; to occur .along the - banks of - Shelton -ditch; '- i.f : Thursday night's downpours, reaching almost . cloudburst pro portions after 4 a." m.- yesterday, added. 1.5 4 Inches of rain, to the March.. total to put it .well over the 3.7 5-lneh" average 'for the month.-:: ' ; - Rainfall was even -heavier-In the Prlngle creek watershed and the Ankeny . Bottom district, ac cording to reports received by the county court. The commissioners were beseiged all day long with requests from outlying resident for relief from. flooded yards and basements.'" :. " ".-V;v 'County Engineer N. CfBubbs. was advised "s that .14 "T Inches of snow fell on ' the North Santiam highways' at t Marion , forks over night and the fall was continuing. Along ension Workers Law Provides elation as to the potential effect on the peso, currently quoted al 3.60 to the dollar. The president's office, immedi ately following Cardenas' unan nounced and unexpected broad cast, said the government would proceed to issue a decree setting forth the terms for nationaliza tion of the Industry and new bases for its operation. ' No announcement was made as to ihe amount the companies would be paid as indemnification for their properties. Under Mexi can ; Jaw, ; such . indemnification must "be made within 10 years. - ' Cardenas' decision was made' after a three-hour meeting of the hastily summoned cabinet. The two-year conflict between the foreign companies and their workers had apparently reached a stalemate. The 18.000 members of the syndicate, following a decision of the labor board dissolving exist ing contracts, decided to "sus pend operations." Arbitration Board Award Disputed .The bone of contention was a federal arbitration board ruling (Turn to page 2, col. 1) War Isn't Likely Soon Says Hoover LONDON, March 18-(ff)-For-mer President Herbert Hoover, completing a long European aa vey, said today "I do not believe a widespread war is at all prob able in the near future." . He admitted, however, "there Is more combustible material about than In 1814. "From discussions with lead ing men In 15 nations," he said, "I have a deep consciousness of many menaces present in the Eu ropean situation ... "But there are a good many reasons why, a conflagration is not likely now . . J . "None of the principal nation will be ready with their war preparations for - two or three years . . Most statesmen and soldiers recognize that nobedy wins in a great modern war. Highway Fund Is To Come Through , President Admits WASHINGTON, March 11!-V The admin is trtlon . abandoned hope today of getting -congress to cancel an allocation of $200. 600,000 among, the state for highway construction work dar ing the fiscal year beginning July 1. -- : - " This was made known fa a letter - to Secretary Wallace' sent to governors, of the various states; asking them to- submit projecta for v approval sor they - might -k-" tain their , shares' of the money. " The - secretary's - letter said President Roosevelt "now feels that- you should not he asked- re further delay the submisslea af the road - building -; projects ' ef youf state. .'I'rl ; ' 1 ' ' . . . :' German Steamer Strike '. - Mine and Sink ; all Men -' But Captain Are Rescued . COPENHAGEN,- March ,lt-(fl? -Reuters (British' news agency) reported today the German steam er Clsus Boege, 2340 gross tons struck a mine in the Nortkv sea today and sank within 10 minute after a distress call was sent out; ' .; The Swedish " steamer " Sverre rescued the crew -of 21 witkv the iexceptionof the captain,;', ; K" . iKnet..,.jrf :