SKT-V X V 1 ff-- - V News Breaks The Vealher Goady today and UTed eaday, llgkt ralaa today. No cbaaee la temperature. Max. temp. Moaday 87 mia. 29 Hirer 13 feet. South Lata evening and earl gnorninff sews breaks era 3 u ran m um morning paper's columns because of , tta,prese time. EIGHTY-EIGHTH " TEAR i " ? ?. "i Salem, Oron, Tuesday MondnJanuiryrM Price" 3c; Newsstands 5e 1 'f . No. 259 mm IB Ml II A I Si Mil I I I 111 I I I II. V55y J 1 1 I 1 1 1 1 - II I I' A IJ I III II - - 5 , Aid Storm CDF t J - ' . , Ob ; U 7 V Unemp)TOent iisation Senate Okehs Amendment - Designed : to Fit ; in ;. ' Federal Setup New Income Tax' Scheme Lowers Exemptions to $1250, $700 With only three "no rotet on final passage, Gorernor Charles A. Spracne's amendment to the unemployment compensation law was passed by the senate and sent to the honse late Monday, rnia is the "bill designed to make the compensation law acceptable to the federal 'social security board which' has delayed certifying it. and to" continue the benefits which insured - Oregon workers receire when unemployed. The near-unanimity with which the bill passed In the senate au gured its prompt approval by the lower house, but the contest which developed over an additional clause Inserted by the senate com mittee on revision of laws is also likely to carry over to the other end of the capitol. This clause contains a definite statement that the definition of a labor dispute contained in the picketing regulation law, shall not be applicable to .the unemploy- ment compensation act . The amendment as written by. Ralph Campbell, attorney for the com pensation commission, was de signed merely to reenact the sec tion of the original act relating to disqualification for benefits, with -this clause Inserted: "On and after November S, 138, and for the purpose of this act only, the provisions of this subsection shall have the same meaning as the provisions of sec tion SOS (a) (i) of tha. federal social security act.-" ? -..-. : Objection la the senate to' the further amendment: proposed-by 1 the eOmmltte WsJ based upon a fear, among ' members . from pre dominantly agricultural districts, that the reference to .the picket . lng law wojxld -weaken it or en tangle It. In litigation. The vote for. Inclusion of this amendment was II to IS, with the following . senators opposed: . " . Burke,' Chaney, 'Chllds, puncan, ' Dunn," Jones,. Kenln; McKay,n8tel- w'er; Walker,; WaTlace' Wheeler and Znrcher. , On final passage, the three "no" voters were . Burke, Kenln. and Wallace. ... . . . .. The Joint eommitteel on. assess ment and taxation Was consider ing Monday an entire new Income tax bill. which would lower the exemption for heads of families from $1500 to $ 12 SO and for sin gle, persons from ISO 0 to $700; The MIL prepared by Budget Di rector David Eccles, - would not hit middle Incomes as hard as the tax commission measure intro duced last week.': v Eccles indicated he prepared the bill , because of objections to the tax commission measure, which' would have ' taxed all 1 in come but would have allowed $35 to , be; deducted; from the. ..tax of : married persons and $6 to be de ducted for each child.-'' : . Be sai4 h.is bill would raise as much revenue as now being pro educed by : the . Intangibles tax, which would be repealed, and the Income tax law ; t The ; exemption . for .. children . would remain at $300. Here's how the three bills would work for married persons without dependents: r .it;3 usm'Z- ' r " Present Tax Com. Eccles . Income -rlmw ' "Bill Plan SS.000 . $ 10 $ 15 $ If J.500 . - JO . 35 3$ 300 35 65 J. 44 , S.SOO 50 . ; SO . IS - 4.000 1 70 ! 105' 1 SS 7,000( S35 - 305 ' S6$ : 5,000 t?-115 115 :f i Sidelights;. . Legislaiors maintain banklg hours' or less in sessIon,.but ,they. put In long hours on committee work and In the drafting of bills and "conferring -with constituents and others. A good many mem bers and employes of the legisla ture "burn the midnight 11'. at the capitoL But. the capitol tele phone switchboard operates only Bp to f p. m. After that It is im possible to call ; the ; capitol, al though persons there can call out. It may help the members to get their work done, but i IrriUUng - to those who want to get in touch with persons In the building. ; , . Rep. John StecEianuDer, liar-5 -ian county's ace vote-gcttey, mricli, J the rl finesse and d: -patch for a brief period yesterday while Speaker Fat-;? - land, took a vacation from tho roatnun. " BteeUuuamer Is : Ute " yonngest member of the bonse.. r There were 40 cigars for 10 house members yesterday, the gift cf JTcJai; Ileegia, a. former em Comoe Change Voted Legislative Admin Prep Original WPAReq FRMap Health Setup Vast Program to Cost $850,000,000 Year Sent to Solons Health Insurance Plan ; Program "to Reduce Suffering, Death WASHINGTON, Jan. 23-fls)-A vast program of federal-state health activities, to cost ultimate ly $850,000,000 a year, was trans mitted to congress today by Presi dent Roosevelt with a recommen dation that the legislators study it carefully. Though he did not ask specifi cally for adoption of any detail of the plan, drawn up by his spe cial committee on health and wel fare, he referred to it as a pro gram to reduce ''the risks of needless suffering and death." One step recommended by the committee was an Americanised version of compulsory health in surance s it is now in effect in many European countries. Health of Nation Held. Public Concern The health of the people Is public concern," , the. president suiC miealtnvls 4-mJor cause of suffering, economic loss, and dependency; good health is essen tial to the security, and progress of the nation. Linking the committee's pro posals with the social security act. the president added that it was recognised five years ago ."that a comprehensive health, program was required as an essential link in our national defenses against individual and social insecurity." He did not discuss in detail any of the recommendations made by the committee and avoided any mention of the' compulsory health Insurance program. Health Insurance has been the basis of a controversy between the committee and the American Medioal association and is the only one of the five recommendations made to the president, which the association failed to endorse. Climber Turn up After (Ml Night HOOD RIVER, Ore., Jan. 23. -jpyTwo mountain elimbers. missing since yesteraay on ml Hood, checked in this morning after spending a snowy night in timber on the mountain.-'- - The men, Blancher Baldwin ... A VhIIaw vaanma iriatt Journey at daybreak after locating timber tot provide a fire ana snet ter from wind last night. Neither man suffered Ul effects and both said they managed to keep warm and dry their clothing. Thirty members of the Crag Rats, mountain- climbing club, had searched the. north side. The two mountaineers left Legion I camp before . dawn -yesterday to climb the sort aside and descend the south to meet friends at Tim- berline lodge. They checked in at Government Camp. - ; Here and there behind and in front of the scenes at the , 40 legisUtive aembly. ploye, of .the house who was con gratulated by resolution last week on the birth of a son. Those who did ot get cigars were supplied with candy, which Rep. Hannah Martin had a happy time dictrib- ting.. - : 4, Dr. R. K. Lee Stelner and Judge L. H. McMahaa were among visit ors on- the floor of the. nouse yes terday after adjournment. IfMtlnn of the state board of control, previously held on Mon days, hereafter will he neia 1 on Tuesdays. .Governor ' Charles A. 8prague : announced. M o n d a y. Snraxue laid the change 1ft the time of holding these meetings would be more . convenient to au three members ot the board Columbia county goats ; will have to sUy home. The house on Monday passed the bill prohibit ing their running at large. A sim ilar, bill was ntroducd In the senate. Exact relation ot cause and effect are obscure, .hut there - - J Turn 10 page coi. 1 ; raBon am to Fight Senate Finally Okehs Hopkins HARRY HOPKINS Only Five Demos Desert President MeNary and Holman Vote 7 now Along tJfto of Purge Targets WASHINGTON, Jan. 2S-(ffV- Harry L. Hopkins was confirmed as secretary of commerce by the senate today 'after a three-day at tack On his administration of work relief. The vote was 58 to 27. Shortly before the vote, two ad ministration supporters. Senators Barkley (D, Ky.) and Schwellen bach (D, Wash.) arose to declare that President Roosevelt, not Hop kins, was "the target" of the criticism aimed at Hopkins. . The final vote showed a margin of more than two to one in Hop kins' favor. . The republican mem bership, voting almost solidly against confirmation, polled a to tal of 21 votes, and received the assistance of one farmer-laborlte and . five democrats, all of - whom have been at odds with the ad ministration from time to time. Fifty-three .democrats were sup ported by two republicans and by three minor party senators in con firming the appointment. Of particular interest . to the (Turn to page 2, col, 1) Relief Strike Is ranly off IDAHO FALLS, Idaho. Jan. 23. -()-One hundred and fifty un employed men and women who "picketed" the Bonneville county commission .for eight -'hours and threatened a relief sit-down strike,- left the courthouse - peace ably tonight - under terms of a compromise agreement. They were to meet . with the commission again Wednesday in what the ' unemployed delegates said would be a "showdown." A conference with the board failed to bring results asked by the unemployed jproup, but the three commissioners assured them that it would seek to develop road Improvement projects ' and - other work. . i ' w? 5'"" ' ' r t - Tempo Forces for nest COP, Democrat Bloc Opposes Larger Funds McKellar Lists Probable ' Slashes as Argument for $875,000,000 Oregon WPA Rolls Are Slated to Drop to 6,600, He Claims WASHINGTON, Jan. 23.-(ff)-Ad ministration leaders in the sen ate rallied their forces tonight for the first big battle of the new ses sion, an endeavor to give Presi dent Roosevelt the full appropria tion which he requested for work relief. Lined up against them, it was apparent, were most of the repub lican membership and a good- sized bloc of democrats, arguing that the time had come when a start must be made toward reduc ing the nation's vast expenditures. The Issue lay between two sums, proposed to be appropriated to maintain WPA from Feb. 7 to the end of the fiscal year next June 30. Mr. Roosevelt and WPA re quested $875,000,000. The house and the senate appropriations committee approved an ou'lay of $725,000,000. " Senator McKellar (D-TMt)f submitted to the senate a table -he said showed the reductions which must be effected In relief rolls If the revised $725,000,000 relief appropriation bill Is enacted. McKellar listed WPA rolls on December 31, 1338, and estimat ed rolls for the last week In June, 1939, in states and selected cities. The list included: Idaho, 11,100 and 3.800; Ore gon, 19,300 and 6,100; Wash ington, 63,300 and 18,200. For days there has been behind-the-scenes scrimmaging for votes. The open battle of debate begins tomorrow. - In an endeavor to attract the votes of members who are an xious for economy but oppose reducing he relief rolls during the winter months, the senate committee attached a proviso forbidding WPA to discharge more than 5 per cent of its 3,000,000 workers before April 1. The committee majority bul warked that today by submitting a report saying that in view of expenditures for public works, the armament program end "the very definite nprise in business conditions," there was reason to expect a voluntary decline in the number of relief workers ex ceeding the 600,000 to 000,000 drop of the spring of 1936 and 1937. Airship Sabotage Seen by Bridges SAN FRANCISCO. Jan. 33.-4P) -Sabotage of American military airplanes by nazl agents and sym pathizers employed in two South ern California aircraft factories was charged today by Harry Brid ges, CIO director on the west coast, in a telegram to President Roosevelt Bridges' telegram named the North American Aviation com pany at Loa Angeles and the Con solidated Aircraft company at San Diego, and urged that "immediate investigation be conducted by spe cial government representatives from Washington. HOW US WAVY PROTECTS BOTH OCEANS Through closely guarded Panama canal and Into Limon bay for a brief anchorage, 0 men war recently slipped, taclad lag US craft shown fat transit. Mine-sweepers went first, to insnre safe paaaagev, - Then the aircraft carrier Xxingtoa led tha Cctt thxostih the canal J .; bm'way to Caribbeam var games. icHfll 1 ' - Is Under Fire ents Loyalists Cling Doggedly to Important Knoll Near Barcelona ; European Stocks - Jittery Over Apprehensions of Loyalists Loss ' HENDATE, France (At the Spanish Frontier) Jan. 34-(Thursday)-(A,)-Insur g e n ts' ad vancing along the coastal moun tain range laid siege today to the little village of San Boy, nine and a half miles southwest ot Barce lona. The attacking troops descended on the little town from the north after capturing the mountain posi tion of Olesa de Bonesvalls. - San Boy was held doggedly by government militiamen because of its position on a hill above the Llobregat river dominating the coastal highway and the highway from Martorell and Barcelona. . (By the Associated Press) Insurgent legions closed in on Barcelona yesterday as fears of more trouble ahead for Europe drove prices down sharply on the world's major markets. Gen. Franco's whirlwind drive on the Spanish government capi tal and nervousness over what might happen in Europe after the end of the Spanish civil war in spired the selling wave which gave the markets their worst setback since the Munich crisis. . Berlin Prices Range Higher ' Only on the Berlin Boerse were prices higher in all divisions, traders there viewing the ouster of Dr. Hjalmar Schacht from the Rekhsbank presidency as Indicat ing a . possible inflation In. Ger many. In Barcelona with tha insurg ents at one place only IS miles away, all civilians unable to help defend the capital, were ordered evacuated. The United States cruiser Omaha steamed under forced draft for Barcelona to take out American citizens. Across the Pyrenees mountains, reports were circulated In France that the French government had agreed to do nothing to prevent an insurgent -victory in Spain in exchange for a German promise to induce Italy to call off the fas cist, campaign ' for territory In France's African empire. British Prime Minister Cham berlain in an empire-wide radio broadcast opening a recruiting drive for a huge volunteer home defense declared, however, that his remarks did not mean he be lieved war was coming. Anthony Eden, former foreign minister, in a speech at Coventry, said an Insurgent victory in Spain would mean "a foreign victory" for Germany and Italy. Another British official, Robert Spear Hudson, secretary of the overseas trade department, cau tiously offered Germany trade peace in exchange tor political appeasement. The Rome-Berlin axis picked up strength when an authoritative Italian editor declared Yugoslavia was now Italy's friend and virtual ally. . In China, an estimated 30,000 Chinese were fleeing Chunking, Chinese provisional eapftal, which Japanese have ' declared they would bomb until Generalissimo Chiang Kai-Shek's government is driven out. Social Security Board 7 Suggests Act$ Revision WASHINGTON, Jan. HHPr The social security board suggest ed to, congress-today revision of the social security act to require cooperating state agencies receiv ing federal -funds- to Install the merit system -and prohibit polit ical activity.. . - " ' ' -1- -. -v Strates Oflnsars Hymn Sung by Survivors Guides Rescuers to Plane Wreck Scene Ten Supported By Four Belts Till Aid Comes Injured Captain of Ship Is Saved by Woman; Group Praised Lifeboat Guided at Last ' by Song but Nobody Remembers Name NEW YORK, Jan. 33-(JP)-Only a song from the 10 survivors of the lost Imperial Airways ' plane Cavalier guided the lifeboat which edged through utter blackness to pull them heroically from the At lantic. This was told tonight as the 10 reached port aboard the res cue tanker Esso Baytown, which saved them early yesterday after they had spent nearly 10 hours in the waters of the Gulf Stream in which their three companions perished. Stanley Taylor, a seaman who stood in the bow of the lifeboat as it put out from the Baytown, said that without that last des perate and almost tuneless chorus from the victims they might not have been pulled from the sea in time. "We were without stars, moon or sextant in complete dark ness." he said, "and then the whole crowd of them started sing' lng. We listened and the song guided us to the spot." Then, he added, as the lifeboat pulled toward the fotyr life pre servers upon which the 10 had dung so long In the near presence of - death.,- two members of the Cavalier's crew NeU- Rieharda, the first officer, and Patrick Chap man, radio officers struck out and swsm to the Esso Baytown. AU save Capt. M. R. Aldersoa ot the flying boat still were able to cry out. Alderson was uncon scious, Taylor reported, and had been saved only through the hero ic efforts ot Mrs. Edna Watson of Montreal and Bermuda, one of the Cavalier's passengers. For hours no one knew how long she had held the pilot afloat. The Esso Baytown was welcom ed by a great shrieking of harbor whistles and by saluting airplanes overhead as she pushed her ice coated prow into the pier. Taslor said eight of the surviv ors were hanging to four life pre servers when the lifeboat pushed Into sight through almost total darkness. "They must have lost the other life preservers when the plane (Turn to page 3, col. 3) Ask Impeachment Of Miss Perkins WASHINGTON, Jan. 28-SV Secretary Perkins defended today the conduct of the labor depart ment in the Harry Bridges depor tation case, but Rep. Thomas (R NJ) announced he would intro duce tomorrow legislation calling for her impeachment. . Secretary Perkins sent Chair man North (D-NJ) of the labor committee a letter, which Mrs. North read to the house, saying that she could not be accused of negligence, as charged by the Dies committee, in not pressing depor tation proceedings against Brid ges, west coast CIO maritime leader. ' Secretary . Perkins told, In her letter to Mrs. Norton, ot the deci sion of department attorneys to suspesjd ' deportation proceedings Against Bridges until the supreme court reviews a pending deporta tion case. ON WAY TO WAR GAMES Small Plane Forced Down, ' i . - Kings Valley PORTLAND. Ore Jan. $$-)-Airport officials here said tonignt they had been Informed a small cabin plane flown by a pilot nam ed Wilson had made a forced land ing in the fog tonight In Kings Valley, west of Albany, Ore. It was undamaged. According to word here the ship was being ferried from Red ding, Calif., to Aberdeen, Wash. Earlier in the day it was forced down by fog near Klamath Falls but continued the journey north when the weather cleared. KLAMATH FALLS, Jan. 23- (A)-Suburban housewives dropped Monday washings and dived for cover today when a light cabin plane hedgehopped rooftops and stalled to a landing at the edge of town. The plane, being ferried from Redding, Calif., to Aberdeen Wash., became lost in the dense fog and was far off its course, When its pilot managed to get dtown through the hate to a land lng, he had less than a gallon of gasoline left. The pilot, a man named Wilson and the ship's owner, Duffy, were aboard. They took off for Port land when the fog lifted, after they had replenished their gaso line supply. SEATTLE, Jan. 23-fl5)-The weather bureau reported south east storm warnings were hoisted tonight on the Washington coast and at the mouth ot the Columbia river. The forecast was for in creasing southeast wind becoming ot gale force tonight and Tuesday morning. PORTLAND, Jan. 23-(ff)rA thick fog held some 10 freighters at anchor in the Columbia river near here tonight. Some were loaded and ready to proceed down river to sea. Others were-en route uprlver for cargo when the tog caught them. Elective Auditor's Office Is Urged Letter to Senate Asserts County Officials Wish Changes in Bill Sheriff A. C. Burk carried to the state senate yesterday objec tions to the bill now before that body to create the office of Marlon county auditor. In a letter being sent to all senators, the sheriff declared "very few" county offi cials had been consulted concern ing the bill and asserted that If the office of auditor were created it should be made elective and not subject to the control of any other office. The letter read in full as fol lows: "It has come to the attention of this office that a bill has been' introduced creating the. of flee ot county auditor for Marion county, I find from a canvass of the officers for this county that very few of them were consulted about this matter and that most of them feel that it should not become a law as It now stands. We feel that the proposed office should be an Independent office and not under . ; ; (Turn to Page 2, CoL 5.)- Wilhelm Gives Firewood .-t. . . . . ,. . , . -.. , DOORN. The Netherlands. Jan. 23 CTV-Firewood cut by - Former Kaiser. Wilhelm ot .Germany . oa his estate was among the gifts he and his wife. Princess Hermine, presented today to the poorest Doorn families. Gales KiU 12 On Southwest Britain Coast Eastern US Reports IT Deaths as Weather Remains Frigid 30 Below Is Recorded in Adirondacks; Relief From Cold Near (By tLe Associated Press) Onslaughts ot wind, eold and snow caused widespread distress on land and sea yesterday. "SOS" signals came from 14 ships scattered across the Atlantis while mountainous waves im perilled several hundred seamen and passengers. Piercing cold spread through the east and New England in the wake rf a brisk blow that dashed pounding surf against the coast from Cape Hatteras to Maine. Snow storms swirled through the west and midwest. At least 29 deaths were re- ported on both sides of the ocean. Gales, at times reaching a velocity of 94 miles per hour, killed 1 2 persons on the southwest coast of England. A freak "line" squall" whieh brought rain, hall and snow to New England left three dead. Five fatalities in up state New York, seven in Pennsyl vania and two in Chicago were attributed to the frigid weather. Heavy seas delayed the arrival of the rescue tanker Esso Bay town In New York until late after noon. On board were the ten sur vivors of the flying boat Cavalier, which sank Saturday, with a loss of three lives: - -New York Shivers la Season's Coldest Residents of Now York City shuddered In the coldest weather ot the season when the tempera ture dropped to 10 above early lm the day. Upstate readings Included 39 below In the Adirondack moun tain hamlet of Mountain .View, 23 below at Oil's Head. 19 below at Malone, 10 below at Watertown and Saranae Lake, 5.7 above at Buffalo and T above at Rochester. The sudden descent of temper- stures in New England . glased . many highways. Thermometers registered 30 below atop . MC Washington in New Hampshire. , 14 below at Greenville. Md.. IS ' below at Concord, N. H., and 10 below at Maxfleld, Vt. Boston' five above was the lowest since Jan. 19, 1938. The sero level was touched la many rural areas In New Jersey but rising temperatures, accom- panled by snow, were in prospect in much ot the east. Boathweet Is Hit By "Uaasaal Bnow The weather also took a turn for the warmer in the midwest as forecasters predicted snow, sleet or rain for most of the states la that section. .- Snow ranged from two inches to a foot in depth in northern New Mexico, five inches In Clinton, Mo., and three in Kansas City. Snow feU in southwestern Colo rado, Kansas. Nebraska and Iowa as the storm moved northeast ward toward Illinois, Wisconsin. . Indiana and Michigan. - Coldest point in the midwest was Park Falls, Wis., with-, ten below. Minimum of 8 and t above were recorded at Ft.-Wayne, Ind and Chicago.-' - Philadeiphlans experienced the coldest day ot the winter. It was If above there. Chnciberlain, Eden Peril ee LONDON, Jan. 23-WV-Prime Minister Neville Chamberlain and his. former foreign secretary. An-. thony Eden; Issued . a common . warning . tonight : of ; dangers to -Britain at home and abroad. Chamberlain, in an empire-wide . radio address opening a. recruit-, lng drive for a huge volunteer home defense army, said hit re- . . marks did not mean he thought " war was coming. " -'-?-', 4 " i . . "But," he said, "we might be forced to take part fa a war be- gun by others, or we might be at tacked ourselves It the government- of. some other; country., were to. i think : we. could . not defend r selves effectively."; . ' : , - ; -1 Eden, addressing : his constitu ency at Coventry In a speech un connected with the Chamberlain plea said that if the Insurgents should win the Spanish civil war It would 1e a foreign victory.". : 4 Knudsen Sees Upturn 1 LOS ANGELES. J tt-VPS William S. Knudsen, president of General Motors, today predicted a - 2 to 33 per, cent Improvement" In the 'automobile industry this year, and a corresponding up- . swing In business la general. . ", 1 . a - ACT