' Art Appreciation . Only a ' few , wore weeks to purchase the 4S repro ductions of famous paint ings from The Statesman. Watch for early announce ment. Weather v Increasing clou dines, rain today, ansettled Wed nesday; Max. Temp. Mon day 47, Mia. 31, riTer 18.8 feet, raia .IS inch, south wind. - peuNDDo 1651 ElliUTY-SE V ENTH YEAR Salem, Oregon,. Tuesday Morning, March 22, 193S Price 3c; Newsstands 5c No. 308 .Mninte (fitieclole Couunci 30 Minis Disorder M(i Industry fffmnge of " y ' 1 ' vfr 1 ' - o Crisis Is Seen in Lithuania Poland Accord Two Ministers Offer to Quit; not All Serene t tct t ! e is warsaw Deiiei Neutral Bloc Proposed; Britain Drafts new Pact With Italy KAUNAS, Lithuania, March 21 -0F)-Reports were circulated to day that the entire Lithuanian cabinet bad resigned as the in ternal .situation continued tense over the government's submission to Poland. Two cabinet members were known to have tendered their resignations, but official circles refused to confirm or deny a ru mor that Prime Minister Jona Tu- belis had stepped out. - ' Foreign Minister Stasys . Lazo raitls and . Minister of Justice Stasys Silingas offered to resign but it could not be learned wheth er Pres. Antanas Smetona had al lowed them to quit. The Lithuanian student associ ation declared a 10-day period of mourning in protest to the gov ernment's capitulation. The mem bers decided to adorn their caps with black crepe until March 31. fin t h a t -dte Lithuania ha agreed to exchange diplomatic en voys with Poland, as demanded in the Polish ultimatum. , ; WARSAW, March J l-(ip)-The feeling prevailed in some quar ters tonight that re-establishment of Polish-Lithuanian friend ship may not experience smooth sledding. Negotiations to put the agree ment between the two countries into operation and to start bor der traffic were under way at Tallinn, Estonia, by the Polish and Lithuanian ministers. WASHINGTON, March 21-)-Poland will take the initiative in forming a neutral bloc of nations stretching from the Baltic to the Black sea and separating Russia and Germany, Count Gorgs Po tocki, Polish ambassador to the United States, aaid tonight. ; Ambassador potocki told news papermen this was made possible by Poland's settlement of her (Turn to Page 2, Col. 6) Pay Upon Gallows MOTJNDSVILLE, W. Va., March 2 l.-idP)-Three . men died on the gallows tonight, the first to pay the extreme penalty in West Vir ginia for, kidnaping. " ', : James Travis, 25, and Orvil Adklns, 25, fell through the trap together at 9:02 p. m., and Arnett A.. Booth, 30-year-old World war .veteran, was hanged 34 minutes later. ' . The trio, all from Huntington. W. Va4 were convicted of abduct ing Dr. James L Seder, elderly anti-saloon crusader, who was held . captive 11 days, then died four days .later of exposure. 0 d dit.ee in the Afwi WASHINGTON, March 21 (P-Representative Lemke B ND) said today a good way to save the taxpayers n o a e y would be to reduce the Bomber of congressmen. - He proposed to reduce the membership of the house of rep resentatives from 483 to 188. Smaller states would have a ' larger representation, propor tionately, than they do bow. -CLEVELAND, March Judga David Copeland said all was cosmic in the damage suit against Joe Voamiav - .. Dismissing Landlord Joseph Kaufman's 3300 suit today against the Boston Red Soz outfielder, in which Kaufman claimed Vosmik's dog did his rug that amount: of damage. Judge Copeland wrote: "Methlnks , the dog that Joe doth own - "Does more than gnaw upon a bone. He announced the lull was set tled out ot court, and wound up with: "So Joe paid Joe and let's play ball . "Dismissed and settled once for alL - x ' ' - . TV A Chi f on't Preside... FR 'A ' t ARTHUR E: o Grainger Concert In Salem Enjoyed Leslie Auditorium Filled to Capacity; Musician Receives Applause - By MAXINE BUREN From the moment ihat Percy Grainger appeared on the Leslie auditorium stage last night un til he had finished Is final "Molly oa the Shore" a good two hours later the audience sat in tent on his hands and the music they made. Not many musicians can fill Leslie auditorium, few can hold them through a long program, with an encore after almost ev ery number. Grainger showed bis fascinating personality at last night's rehearsal; re looks very much like a musician, and one expects temperament with certain mannerisms, but as he discusses each piece, telling a bit about the composer and demon strating at the piano his explana tions he shows utter pleasure in playing. He has few mannerisms, sitting quietly but with a great show of. strength. Contrasting the strong first number on the program, "Fan tasia and Fugue G minor, Grain ger played "Blithe Bella," also by Bach as an encore. "Symphon ic Studies" by Schumann was ex plained as a robustly athletic composition, quite unlike the us ua romantic . character of the composer's nature. As an encore Grainger played "Romance in F Sharp Major" also by Schumann. '-, "Ballade op 24" by Grieg Is distinctly Norwegian and was en- ; (Turn to page 2, col. 2) Zimmerman Presents Issue i Of 7-County Peter Zimmerman, former state senator from Tamhill county,' up held the ' proposed seven-county utility district which ip to be voted upon April 8, In an Address at the Salem c h a m b e r of commerce luncheon Monday noon. The district if created will In clude portions of Polk, . TamhilL Clackmas, Washington, Clatsop, Columbia and. Lincoln counties.- Zimmerman assailed the unfa vorable report of the state hydro e 1 e e t rie commission, declaring: "Change the governor of Oregon and youH change that report," He said the report assumed that the district would pay a consider able amount 1 for promotion but allowed nothing for the expan sion such promotion would bring, and also assumed that the' project would be paid for twice in 20 years, through replacements ao offset depreciation at the same Ume that the cost was being am ortized. Zimmerman devoted the major part; of his talk, to answering statements made by Franklin T. Griffith, president of the Portland Mexwan Resign, Tells He Can't Fire Him JHORGAN,, - 1 Chairman of TV A Defies Roosevelt "Not ra Public Interest" Is Answer; Silence Is FR Threat Basis WASHINGTON, March ll.-(JP) -i-resiaett Koogeveit threatened to suspend or remove Arthur E. Morgan from the chairmanshin of the Tennessee Valley Author ity toaay and promptly was con fronted with a blunt declaration rrom Morgan that he was power less to do either. . The determined chairman de clined to nartleinatn ' further In Mr. Roosevelt's personal investi gation or tva and spurned a presidential sueeestion that he was obligated to resign or re tract tne charges he bad made against his fellow members of the TVA board of directors. "It is my Judgment," Morgan told the president in a third and apparently final session of the chief executive's inquiry, "that my resignation at this time would not be in the nubile Interest. Therefore, I do not tender my resignation. I wish also to say that I - challenge the sna-areation and deny the right and power to remove or suspend me." -He Persisted in hia refusal tn give the nre8ldent facta tnnnort. ing his accusations that Vice- unairman Harcourt Morgan and Director David Lilfonthai been guilty of malfeasance, or to aeiena mmseii against tbel charges , that he had sought to "rule or ruin" the TVA, Mr. Roosevelt said that on the basis of the record of his hear (Turn to page 2, col. 4) Power District General -, Electric company, . in previous chamber of commerce address opposing the district pro ject. i-'V: V-' '. Challenging Griffith's claim of low rates, .Zimmerman . said the Eugene municipal plant's charge for 15 kwh. was 75 cents com pared to the PGE of $1; for 100 kwh $255 compared to 33.39 and for 250 'kwh. 34.50 compared to IS. . - - Admitting that PGE rates were lower than those of federal rural electrification administration pro jects, Zimmerman said the latter served remote districts which pri vate utilities refused to serve, and that therefore the costs would nat urally be higher. Zimmerman attacked the past policy of the PGE, saying it had required rural petitioners to post excessive 1 sums before building transmission lines, varying that policy only occasionally "through fear." The speaker attacked the hold ing company system under which he said, eastern financial Interests (Turn to page 2. coL 1). Oil Control One American Held Prisoner In Pay Dispute Agrarians Cause Trouble in Sonora but Troops Control Situation QS Protests Seizure of Oil Plants but Will Still Buy Silver NOGALES, Ariz., March tl.-lJP) Federal troops controlled the city of Ciudad O b r e g o n, Son., Mex., tonight, reports reaching the border said, after armed agra rians relinquished possession of mills and municipal buildings they had seized earlier in the day as a protest against the policies of the local administration. The Nogales Herald reported three rice and flour mills, closed when 200 armed agrarians took complete control of the city, were reopened after federal troops un der Col. Avila Blanco assumed control of the city. No property damage was reported. Agrarian leaders, border dis patches said, agreed to surrender the mills and municipal buildiuKS and withdraw from the city pend ing .outcome of a petition asking Got. Ramon Tocupicio of Sonora to oust the city administration of Presldente (Mayor) Felix Verdus- duzco. MEXIPO CITY. March 21. -FV- An American and two Mexican oil company executives were reported to be held nrisoners today by Tam- nirn worker In the first disorders developing from Pres. Lazaro Car denas expropriation or the tor eign petroleum industry. Tamnico advices said Edward Borrego, American superintendent of the Standard Oil company ot New Jersey refinery there, and the Mexican were held "within a building" by workers demanding navment of back pay. Company officials here said they knew of no pay due, unless It was (Turn to Page z, col. 4j Japanese Army Is Reported Cut off WITH THE CHINESE RED ARMY IN CENTRAL CHINA, March 21-(fl3)-The commander of the Chinese red army today as serted 40,000 Japanese troops in southern Shansi province were cut off from their supply bases and in greatest danger of defeat since the Chinese-Javanese war started. The red. commander. Tu Cheng Tsao, drew a grave picture of the JaDanese military, nosuion in Shansi where forces have been moving south toward the red cap ital. Sianfu. At his field headquarters in central Hopeh province, south of Pelping, Yu also recounted series of red victories in the past month which put the Japanese in a precarious position. . Japanese troops in southern Shansi have been fed for the past six days with fsod dropped from planes, red military reports said. Their mountainous com munication lines eastward along the Peiping-Hankow railway were cut by 30,000 red Chinese troops. Raising of Money Orders Admitted , By Dean Maxwell DALLAS. March 21. Dean Maxwell, who was arrested here Saturday by Sheriff T. B. Hooker, charged with forgery of an Amer ican Epress money order, has con fessed to 18 such forgeries, offt cers here said. The confession was made to O. H. Montgomery, spe cial agent of the express company, State Police Officer Webb and Sheriff T. B. Hooker. - Maxwell was arraigned before Justice of the Peace Charles-Greg ory, here today and waived pre liminary hearing. He was bound over to the grand Jury.' He la be ing held in the Polk connty Jail. , Maxwell was arrested here Sat urday afternoon by Sheriff Hook er, for passing an -American Ex press company money order at the Guy's Hardware store. The order had ben issued for 11.48 and had been r a I a e a to 117.4s, it charged, " I I if ine nuuse BigNavIffl "e high Nearly 3 to 1 46 Warships, 22 Smaller Vessels, 950 Planes, Cost One Billion, . ... Reorganization Bill Hit by Gr.een; Amendment by Byrd Defeated WASHINGTON, March 2l-(ff) -The administration's billion-dol lar naval expansion bill won house approval today by a ma jority of nearly three to one. Thirty republicans joined one progressive and 261 democrats in swamping the opposition, 292 to 100. The measure would authorize construction of 46 warships, 22 auxiliary vessels and 950 air planes. Experts say its author izations could be carried out in four to six. years. It now goes to the s enate, where Senator La Follette (Prog Wis), Senator Borah (R-Ida) and some others have indicated they will fight It vigorously, and ad ministration leaders have pre dicted passage by another large majority. As approved by the house, the bill carried no actual funds for construction. President Roosevelt has recommended, "however, that work be started this year on some of the vessels it would authorize two of the three battleships and two of the nine cruisers. To make this possible congress would have to approve a separate appropriation hill. In addition to providing ior the new ships, the bill would authorize the navy to: 1. Build a $3,000,000 dirigible (Turn to page 2, col. 8) Witnesses Appear In Relief Inquiry Several More Subpoenaes Issued; Maxwell Case may Get Attention Investigation of the Marlon county relief organization went into its second day before the grand Jury yesterday and indica tions were that the probe would last for at least two or three days longer. Joseph B. Felton, deputy dis trict attorney, said he didn't know how much more time the Investi gation would consume. C. A. Sprague. publisher of The Statesman, appeared before the grand Jury during the day by re quest to explain the nature of complaints, against the handling of relief as made in editorials which appeared in The Statesman last month. (Turn to page 2, col. 3) Shrock, Lewelling File for Primary Walter S. Shrock ot Hubbard filed in the state department Mon day for the democratic nomina Hon for Marion county state rep resentative. Shreck was the first democrat to file for the house in this county. Circuit Judge L. G. Lewelling filed for renomination ' for his present office in the nonpartisan primary. There were two filings tor gov ernor: Charles A. Plaine, Eugene real estate man, republican, and Ralph M. Erwin, Multnomah conn ty coroner, democrat. , Other . filings, all for republi can nomination for the lower house In the legislature, were. A. J. Swett of Tillamook, third dis trict; Malcolm L. Wilkinson of The- Dalles. 21st district; L. D Nash of Nashville, Lincoln coun ty, ninth district. Perrine Files to Succeed Himself; i Nicholson to Run With' the preliminary filing yesterday ot E. B. Perrine, as a candidate to succeed himself to the four-rear - term on the city council from ward 1, and tht announced IntenUon to file to day or tomorrow by J. H. Nichol son, for the two-year unexpired term from ward 1. all 10 poten tial vacancies, with the exception of that of Fred A. Williams of ward 5, have one candidate each in the field. City Recorder A. Warren Jones, completing nil second term In office, yesterday formally tiled his preliminary petition as a candidate to succeed himself tor a third term A His announced campaign slogan is: "My rf-d is my pieuonxL. - Storm Drain In Council Prompt ' Relief Sought Aldermen Testify as to Early Morning Calls From ' Irate. Citizens; Sewer : , ;. Bring in 'Plans Fully a half dozen council members reiterated last night how they had been beseiged by irate citizens in their respective wards all the way from midnight to 5 o'clock in the morning concerning flood waters and sewage backing up into their basements and causing untold damage and grief. While Alderman Exed A. Williams, m a lengthy speech, ' O was vehement in his demands that Croup Organized, Back Art Center Mrs. V. A. Douglas Head of Association; Scbool Will Be Opened Mrs. Vernon A. Douglas was unanimously elected president of the Salem Art Center association at a meeting at the YMCA last night at which it was announced the campaign to raise 32000 for a federal art school project here, had gone over the top. Contri butions totaling 32196.02 were announced, with further reports to be received. Other officers named by the association included Otto K. Paul us, vice-president; Edward W. Acklin, secretary, and Tinkham Gilbert, treasurer. A governing board consisting of 60 people representing interested organiza tions is being formed. Definite announcement of a date for starting the project and opening the art school to be lo cated on, the ground floor of the old senior high, school building is expected to be made at a meet ing of the board Of directors with D. S. Deffenbacher, national art project director, and . Coast Sup ervisor Danysh at the TMCA at 7:30 o'clock Thursday night. The two executives were unable to keep appointments to attend last night's meeting. Dr. Burt Brown Barker, state chairman of art projects, who discussed the movement last night, win confer at the YMCA at 5 o'clock this afternoon with the officers. . . ' River Drops From Peak of 18.7 Feet Cool weather and a cessation of heavy rains over the weekend at least temporarily halted a Wil lamette river flood threat and the stream began falling yester day after having reached an 18.7 foot crest recorded at 7 a.m. Sun day The river was dropping at the rate of one-tenth foot an hour last night At 10:30 p.m. it stood at 18.1 feet. A weather bureau forecast of rising temperature for today and cloudiness followed by rain made it possible the river's drop might be checked by melting snows. Only .03 inch of rain fell in the 24-hour period ended at 7 a.h. Sunday and .13 Inch more up to the same hour yesterday. Thornburgh, 105, Oldest Resident of Oregon Dies FOREST GROVE, Ore.. March 2 l-(P-Ambers Thornburgh, 105, listed In Who's Who In Oregon as the state's oldest resident, died today. . Thornburgh crossed the plains to California in 1859 and came here two years later. New Theory as Source Told, Ledford Case ST. HELENS," Ore March 2 1-(iPy-Mrs. Mlrron -Jensen, mother of Mrs. Agnes Joan Ledford, 35. testified today ahe knocked down "something In dark fJlt cel lar on September S, the day be fore the state contends her daugh ter poisoned Ruth Ledford. 13. : Mrs. Ledford. charged in . a separate indictment with th poi son death of another stepdaugh ter. Dorothy Ledford, 15, previ ously testified she placed a pack age of poison purchased cs an in secticide In; the fruit cellar. Mrs. Jensen said ahe felt some thing strike her arm when she reached up to a shelf In the cel lar for butter, but failed to find what had fallen In the dark. She said Ruth died - the next day after asking for a glars of milk. Mm. Ledford was in Port land with Dorothy, who waa tak en to a hospital, at t!.e time. -. Mrs. Jensen was still on the witness stand when court re cessed. - ' Other defense witnesses testi fied briefly to apparent good feel ing and affection ? existing be Problem Li Committee Asked to , at Next Meeting- . the council take immediate action, Mayor Kuhn and several of the council were ot the belief that definite plans ot procedure should be adopted although they were of the same general opinion as Williams. Although Williams was for making an attempt to give flood provoked citizens immediate re lief, it was his citation that the city had in years past appropriat ed and spent 3500,000 on -sewage disposal outlays for which they now had very little to show, that caused fellow council members to point more firmly to the necessity of having well-devised plans of operation. Mayor . Kuhn's announcement that word had been-received that a WPA grant of 313,000, which the city has to match, had been appropriated, was a signal for ex pression of disgust from Williams concerning WPA projects. Citing Shelton ditch as his example, Wil liams said It always would be an eyesore and "no earthly good." Action was ultimately taken by the council, demanding that the (Turn to page 2, col. 6) Policies for Flax Industry Outlined Committee to Meet Twice Yearly; State Will Limit Activity A committee ot nine, represent ing Oregon's three cooperative flax plants and officials of the state flax industry, will meet twice annually hereafter to dis cuss standards, grades and. prac tices involving the Oregon flax setup, it was determined at a con ference Monday of members of the state board of control and flax cooperative officials. Prices to be paid the growers for their flax also will be con sidered at the committee confer ences. The state, under the new pro gram, will confine its activities to developing new flax fields and processing flax which cannot be handled by the three cooperative plants. The cooperaUve plants are lo (Turn to page 2, col. 6) "Reelect Martin" Group Organizing A "Re-elect Governor Martfn" club has been formed In Salem with T. A. Llvesley as president and Paul B. Wallace secretary: Rosters for membership are be ing circulated, about a hundred lists being out. The club is be ing organized on a- nonpartisan basis. "People we hare approached have been signing up virtually 100 per cent," reported Wallace last night. - The heading calls for support for Martin for reelection as gov ernor, the signer joining a club with that object in view. to Poison Y tween Mrs. Ledford and her step daughters. ' . ' r:--V::,: Mrs. Gladys Wooten, Portland, friend, of Mrs. Ledford, testified the children called he- .'Mama Agnes." She said Letha, 10. an other stepdaughter, had told her Mrs. Ledford mada orer her wed' ding dress for, Ruth, who needed a new . dress. J Leland Rice, Yankton, testi fied he had used a spray machine previously used by Clyde Watson to spray a potato field. . He said dust rose only about. "six feet in the air in a light wind and never blew more than 100 feet. Pre viously, witnesses said the dust rose 20 or 30 feet. , The-defense has contended the girls were poisoned by eating blackberries from a patch to which spray from the . Watson field was blown. Mrs. Eva Steves testified pre viously the last words spoken to Ruth by Mrs. Ledford were: - "Dear, do you know that moth er loves you?" -f T.':. "Yes, and I love you. too Ruth was Quoted as answering. ineligh Route Changes Also Provided, New Ordinance Vote Is Unanimous With two Qualified ""Ayes on Firm's Request 9 Refunding Airport BondV Approved; Hain Given" Riverfront Lease Without a dissenting vote, but with two qualified "ayes, the city' council last night passed the ordinance amendment calling for specifications of bus routes and designating the schedules upon which city busses will operate at not more than 30-minute inter vals. " Alderman David O'Hara quali fied his assenting vote by saying he so voted with the stage com pany's assurance in mind that north Salem would receive 15 minute service during the morn ing and evening rush hours. Stating that he didn't approve of the procedure and thought it all wrong, Alderman M. D. Ohlteg further qualified his "aye" by say ing that because citizens in his ward demanded bus service he had no alternative. . The public utilities committee returned both the bill regulating busses and the bill changing bus routes without recommendation. Alderman L. F. LeGarie, chair man, said while the committee felt that the Oregon Motor Stages company was justified in asking: for the change In routes and 30 minute schedule, it did not wish to go on record. ., Airport Refunding ' Bonds Are Authorised By a unanimous vote the ordi nance providing for an-lane-et city ot Salem general obligation airport refunding: bonds, - In amount of 325,000, was passed. Upon the withdrawal by the Hotel New Salem of all objections, the license committee tendered its approval ot the application for a bowling alley at Ferry and High streets, made by J. H. Coe and L. Y. Congdon. The council ac cepted Its recommendation to li cense the establishment. j Although the special commit tee reported back to the council as in favor of leasing the city property along the river bank, at the end of Chemeketa street, to W. L. Hain of the Salem Naviga tion company for five years at $1 per year rental, and tendered a lease to the council for approval. the council referred the lease to the dock committee for a report and revising. Mayor V. E. Kuhn was no clause in ' it giving the council assurance that Hain would build there as he promised, and Alderman Evans objected In that there was no clause directing dis posal of the building at the end of the five-year period should tha city not renew the lease. A report ot the health and sani tation committee, . recommending passage of a bill prohibiting the irainage oi roois oi ouuaings or surface water into sanitary sew ers, was adopted. Zone Change Voted At 17th and Market Both a petition, from "approxi mately 150 residents ot the -zone and a resolution, tendered by Al derman Fred A.' Williams, asking the council to restore the south- -east : and northwest corners ? ot 17th and Market streets to origi nal class one residential district from' tha claaa three hairiness zan - it now is, appeared before the council. The resolution was adopt ed, and both it and the petition; directed to the planning and lott ing commission, along , with, the passage oi a motion ny Aiaenaaa Evans prohibiting the city buOd (Turn to page 2, coL X) . . . . Charges of Jury Tampering Heard OREGON CITT, March 21 HA, -A statement by District Attor ney Fred A. Miller that he has submitted to a county grand jury evidence of alleged Jury tamper ing in the recent trial of Sheriff E. T. Mass drew, demands for a speedy investigation today -from Charles T. Seivers -and Arthur J. Beattie, Mass attorneys. The Jury in the trial ef the sheriff on charge -of larceny of public funds failed to reach a verdict art the -case will be re tried April 5. "If any part of this purported investigation, by the grand Jary would hare been to have stated all of the facts concerning the in vestigation so that those persona connected with the trial who are not guilty of . misconduct would not be under-the cloud of this veiled accusation, Selvers aaid. He added that he had.. offered "every assistance" in the invest!- gatlon,"