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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 19, 1939)
r Valley Newt - Cighty correspondent touted la strategic palate bring complete Willamette alley news to readers of The Statesman. The Weather Partly cloudy today and Monday, little change' la temperature. Max. Temp. Satarday SI, Mia. S5. River 135.7 feet. West wind. PCUNDZ3D 1651 " EIGHTY-EIGHTH YEAR Salem, Oregon, Sonday Morning, February 19, 1939 Price 3c; Newsstands 5c No. 282 paraph Rlkce x?v xn:., - ii villi I i i i" i v w l i i i i i i i . i i i i i i Looms built -o - I' ' Legislature Is SlIrtingDo Home Stretch Appropriations, . School a A V. Setup, Tax Problem .' and PUD Remain Relief Cost Puzzle May : Be Simpler Than Has Appeared, Belief By SHELDON F. SACKETT Oregon's 40th legislative ses sion; with six weeks of work be hind It, was ready today to heaa down the home stretch and ad 1ourn within a fortnight Its ma jor enactments are yet ahead but the last week cleared away nu merous important measures and the war is clear for orderly con elusion of the session's work with IS days unpaid, overtime activity. A checkup of the box score of the session showed the senate had passed 271. measures, the house 280 while the two assemblies had agreed on 179 bills and sent these to the governor for approval Compared with the Washington legislature, the record "was note worthy, that assembly having en acted 18 bills In six weeks. - Before the session as . major objectives remain: 1. Enactment of the ways and means bills, including decision on how to handle the vexing $2 2 000.000 relief problem. : ? 2. Clearing up of the tax di lemma. '. i V 3. Decision on the two bills for reorganization of school dis tricts and reapportionments of school funds. " ' 4. Passage of some revisions to existing PUD law. Bakery Board Repeal Expected to Pass A score of other -measures of relative Importance rawait final decision. The bakery board re- - peal 'went through f he senate de cisively as .me:, wees- .cairur a close and is expected to be passed by the house. Governor Sprague, who views the board and its-price-fixing as an NRA carryover, is - determined - it- shal 1 be discon tinued.' The fundamental changes In the state setup of parole have been approved by the senate and await house decision. Major changes are expected In Jfhead ministrative procedure in hand ling unemployment insurance. Tet to be introduced is a vital mea sure which would provide for re forestation of lands on a far- sishted program aimed at a sus tained yield for Oregon timber. The much-discussed state re lief problem may be settled more easily than most legislative ob servers believe. It is a certainty that the state will approve about an S8.000.000 appropriation from its own funds. This money will be , obtained as follows: $5,200,000 will be appropriated from future tax revenues and profits on tne sale of wines, beer and hard liquor. An .additional 2,100,000 will be carried over from unused appropriations of 1937. The bal ance will be a new general fund appropriation for 1939-1940. The federal government will contribute another $8,000,000 match -money leaving the 36 counties of the state with $(,000,- 000 to raise as their share of the 1939-1940 relief program. The counties, who strained their bud gets to raise $4,000,000 In 1937 1938. protest they cannot handle their share of the next blennium's relief load. As a result the ways and mea-a committee and the - tsxatlon and revenue committee in the house may instruct the state" liquor commission to obtain 2500.000 to $760,000 more an nually from liquor sales. This money will probably be added to the state's share for relief and when and if the counties fall down on their match money, the state will Increase Its contribution It did in the latter part of 1938 when the counties' funds ran out. Gross Income Tax Would Face Battle Tnla nrocedure remains sur mise but It is much more likely to be followed by this session than the enactment of any new taxes. The nronosal ot a gross income tax for relief has come out but Is meeting serious objection. First, a rross income tax will be more bitterly fought by merchants than a sales tax; the latter is directly (Tarn to Page 2, CoL 4.) Senate Okehs But Balks at Another Bill ' The state senate gave approval, 21 to 6, Saturday to a senate bill increasing the salary of the state corporation commissioner, an ap pointive official, from $00 ; to $4800 a year, hut rejected a house bill proposing to Increase the sal ary of the labor commissioner, an elective officer, from $3600 to '$4200.' w,.,:' ;:v;",.:r-: ; Praise of the service performed vby James H. Haxlett, present cor poration commissioner, featured the debate favoring tne Increase.' Sen. Ashby Dickson-declared -Ore-gon" was fortunate to bate such . an officer and claimed nis salary : was out of line since the utilities commissioner receives $7500 a PASADENA AND . -- f - . r -x -s " V J 4 , - 1 '- .V'' Fanned by the same high wind which felled trees and telephone poles over a large area In southern California, flames razed almost Pasadena, witb loss estimated zeed and fuel store and several stein building, largest in the The harbor Is In the backgrounds Records Salvaged On Schreck Ship SPOKANE, Wash., Feb. 18.-(fl?) -A party of 13 men returned here today from Copper mountain in the Couer D'Alene hills carrying 150 pounds of Instruments from the wrecked plane of Roy Shreck, Spokane weather pilot, who was missing 80 hours after he was forced down early last Sunday. The men, on snowshoes and skis, followed the trail made by Shreck in coming out and found the plane, half buried in the snow, its wings folded back, but other wise not damaged. Shreck, -. convalescing at " his apartment here, said he hoped to salvage the motor in the spring. He said he had planned to resume his weather flights tomorrow, bnt will rest a few days longer. Traffic Death's Holiday at End WALLA WALLA, Feb. 1 SHflV Mrs. Amelia DeWald. 72. tonight became the first traffic fatality In this city in 15 months. ; An auto driven by Loren Royse, also of Walla Walla, struck her while she was crossing a residen tial street In the rain. She died in an ambulance enroote to a hos pital. -- Walla Walla's last traffic death took place November 25, 19J7. : one Pay Raise year- and the . insurance commis sioner $5000. . - Senators W. E. Burke ana i-w Wallace onnosed the bill on the around that state officials are al ready well paid and that It la not Mm. x mIu ulirlaa when "thou sands of people are going hungry,' Sen. U. S.- Balentlne said; the hill was a move to equalise sal aries of state officials rather than to Increase them. Sen. Rex Ellis also spoke In faror ot the bill. Following the unfavorable rote on a salary Increase for the labor commissioner, declared to he the lowest-paM elective state official In Oregon. Sen. Ellis announced he would amove for reconsidera tion. ... - JUNE A U SUFFER BAD FIRES -if . -"2 .1' square block of business and at 9oO,ooo. Upper picture snows nomes. Below, scene or a 9300,000 territory, was destroyed and the AP Telemat. Timberline Lodge Showing Profits PORTLAND, Ore., FClh'lSn Private operators of Timberline lodge, WPA project built on the slopes of Mt. Hood to give the west an Alpine resort, said today that they made an operating profit of 12,600 in the first 11 months of operation ending last December 31. After depreciation a net loss of $873 was shown. Gross busi ness of $109,797 was reported, with total visitors exceeding 114.- 000. Operators . lease the lodge from the forest service.' . I- Klght view at Treasure Island,' fa San Francisco bay, where the right, the two massive Elephant towers flanking the Portals of the Bight Illumlnattoav-HK shoto. 4 miup.' : residential buildings In downtown what was left of a machine shop. tire in Juneau, Alaska. The Gold' entire business district threatened. War-Marked China Greets new Year SHANGHAI, Feb. 19.-(Sunday) -()-While 400,000,000 Chinese today celebrated their New Tear, sporadic fighting went on over most of the country without any major changes. Lieutenant Commander- Charles R. Jeffs, commander of the United States gunboat Oahu, and Lieut. Commander R, 8. Stafford, com mander of the. British gunboat Ladybird, reached Kuling, sum mer resort near the Yangtze river, to supervise evacuation of ma rooned foreigners there in antici pation of a Japanese attack scheduled for Monday. Portland Man Is Killed in Wreck HILLSBORO, Ore., Feb. 18-(ff) -Stanley R. Suits was killed in stantly and David O'Bray was crit ically Injured tonight when their automobile overturned In a ditch near Tigard. Both men were from Portland and O'Bray was removed to a Portland hospital. He was unconscious. ' TREASURE ISLAND MAGIC IS Joint PrograW Is Drawn for Real Recovery Administration, Business Expected to Bless National Move New Deal to Railroads, Utilities, Overhauling Labor Acts Due By HENRY PAYNTER (Copyright, 1939, by The Associ ated Press) NEW YORK, Feb. 18 Tax re vision, a new deal for railroads and utilities, and an overhauling of labor policies are basic elements of a joint business-administration program designed to bring lasting recovery, some industrial leaders said today. Secretary of Commerce Harry L. Hopkins, under whose supervi sion the plan has been elaborated in secret conferences with big business leaders during the past two months, is expected to pro nounce the benediction of the new deal upon the program in a speech at Dcs Moines, Iowa, daring the coming week, they said. Hopkins has represented to some big business leaders, they said, that the "drive" to bring recovery will have the support of President Roosevelt. The main points of the "drive" as outlined by financial leaders here, are understood to Include: . "Breaking Log Jam Of Resource" Planned 1. Broad revision of the federal tax laws, and basic modification of the securities and exchange commission's policies all In the primary hope of "breaking the log Jam of capital resources" and getting the nation's wealth mov ing, through equity markets, into business expansion; (they pointed out t ha t .although President Roosevelt said yesterday'that he did not plan' to introduce new taxes, that his remarks did not preclude a move originating with business itself through congress). 2. A long-term program for pri vate electric utility expansion, in cluding an administration prom ise to limit future competition with private Industry, In the hope of Immediately launching huge utility spending to "get heavy in dustry moving. S. A permanent solution of the railroads' problems In a broad new "transportation act," in which the future of rails, highway traffic, and water transport will be am icably correlated, in the hope of getting "the nation's number one spender on the job." 4. New laws and federal poli cies relating to coal and other basic mineral' industries, worked out jointly by executives, labor and government experts to "elim inate disease spots" in the nation al economy. 5. A major effort to end fac tional lajbor disputes; modifica tion of national labor board pro cedure (but without basic change in the principles of the Wagner act); tempering of the Walsh- Healy act to help solve some small factory problems. Not to Compromise New Deal's "Reforms' The program In general, they said, was designed not to compro mise any of the essential "re- but to "consolidate" these changes in order to put "drive" Into the business picture, especially In the capital field. Some "new dealers" have charged that there was a "strike of capital"; Industrialists, conced ing that the world's greatest ac cumulation of capital resources is stagnant, have contended that capital was not being Invested be cause Investors were uncertain of the future. The program, they say, is designed to remove a large part of that uncertainty. Some of the best known figures in heavy Industry, . utility and fi nance fields said today that they would predict that If the program : (Turn to Page 2, CoL 3.) Goldea Gate erposlUon cpened fotar&jw At left, the Sua tower; Padfle, which farm the vestexm wall of the island, pictured made Italy Calls Reserves; . Fears of :FDR Shared Great Britain, France Will Act for Madrid Sole Condition to Surrender Will Be Assurance That no Reprisals Will Be Taken Against Loyalist Fighters PARIS, Feb. 18 (AP) Spanish government officials said tonight that the Madrid government had authorized France and Great Britain to negotiate its surrender to the nationalists on the sole condition that there be no reprisals against former government fighters and sympathizers. These officials, closely identified with Spanish govern ment President Manuel Axana, O ; said French and British represen tatives at Burgos had been in structed to present to Generalis simo Franco's government the of fer for peace in the two and one- half year old civil war. The French government, acting through a special envoy at Bur gos, sought quick settlement of the war and repatriation of about 380,000 civilians and soldiers now refugees in France. Sir Robert M. Hodgson, British agent in nationalist Spain, arrived at St. Jean de Lus tonight from Burgos, the nationalist capital, following a reported conference with nationalist officials on the government's proposition. MADRID, Feb. 18-(P)-Nation-alist artillery shelled Madrid to day while the port of Alicante was subjected to a prolonged air raid. A number of casualties were caused by high explosive shells falling in widely separated sec tions of the besieged capital. At Alicante 40 persons were re ported killed and ICO wounded In the raid directed at the heart of the port. Thirty buildings were wrecked. Willamette Takes Talk Sweepstakes Thomas and Smith Team Winner; Other Events Are Also Taken McMlNNVILLE, Ore., Feb. 18-(P)-Willamette university downed all comers to win the sweepstakes event in a Pacific coast, intercol legiate debate tournament today. Linfield college finished sec ond and Pasadena college third. Other winners included: Division A debate Women: University of Redlands, team of Frances Anderson, Nancy Rankin and Mary Brown, first; Pasadena college second. Men: Willamette, team of William Thomas and Al dus Smith, first; Pacific univer sity, Willamette and Linfield col lege second (tie). Division B Women: Washing ton State college, team of Elna Schmits and Lauraine Little, first; Linfield second. Division C Women: Washing ton State college, team of Ruth Engleson and Mary Burnett, first; Willamette second, Helen New land, Beverly McMillan, Doris Riggs and Wilma Schneider. Men: Pasadena, team of James Jackson and Bud Smee, first. Division D Oregon State col lege, team of Burgon Emberson and Kenneth Robinson, first; Col lege of Puget Sound second. Oratory Women: Juanita Gill ham, Linfield, first; Frances An derson, Redlands, second. Men: Bill Clemes, Willamette, first; Duane Lamka, College of Puget Sound, second. Impromptu debate Miss An derson, Redlands, first; William Thomas, Willamette, second. Extemporaneous a p e a k 1 n g Women: Miss Anderson, Redlands. Men: Arnold Flnkbelner, Linfield. After-dinner speaking J a n Hartman, Oregon State, first; Carl Burn ess, Redlands, second. DISCLOSED Mystery Is Tied To Convicts Here Tennyson Duo Have Said They Slew Boy; Bones Believed Found PERRYTON, Tex., Feb. 18-(ff) -A 7-year-old mystery of the dis appearance of two boys whose fa ther was found shot fatally next day was recalled today by the dis covery of the bones of a child on a wind-swept panhandle ranch. Lloyd Davis, a WPA worker, stumbled onto the skull and parts of a skeleton while making a min eral survey on the Merydith ranch. 25 miles southeast of here In Lips comb county. Deputy Sheriff D. D. Taliaferro said he and Sheriff Sid Talley of Ochiltree county believed the bones may be those of the missing Cone boy. He said thex would in vestigate tomorrow or Monday at the place where the bones were found. ' J. M. Cone, Jr., "10, and his brother, Vernon, C, disappeared May 31, 1932. Their father was found the next day dying from bullet wounds. A coroner returned a verdict of suicide. In 1936, Elmer and Claud Ten nyson, convicts m tne Oregon state penitentiary, told of being hired by the father to kill his children. They said they shot Cone when he refused to pay them for murdering and burying the boys. Officers branded their story as a hoax. They were sentenced to the penitentiary in 1935 for bank rob bery. The teeth indicated the bones found today to be those ot a child about 12 years old. I Wallace, CIO Head Plan Cooperation DES MOINES, la.. Feb. 18. -UP) -Secretary of Agriculture Wallace and Sidney Hillman, vice-president of CIO, joined tonight in propos ing an Inter-group council of agri culture, labor and Industry, which with the aid of government, would work together for economic re construction. Charles R. Hook, of Middle town, O., steel manufacturer and chairman ot the board of the National Association of Manufac turers, pledged the support of in dustry, asserting "it Is ready and anxious to put Its shoulder to the wheel along with agriculture, la bor and government," These thrc J leaders, with Secre tary Wallace representing the dual roll of agriculture and gov ernment, were speakers at the concluding session of the national farm institute, which tor two days discussed economic Inter - group relations. A national income of $100,000. 000,000 was envisioned by Secre tary Wallace if all three groups cooperate in the reconstruction proposal. However, the cabinet member said, to accomplish this petty squabbling over the share to be had by each group must stop and all parties must "pull together" in a "spirit ot good will." Golden Gate FairFunseekers Left in Dark on First Night SAN FRANCISCO, Feb. 18-P) -The Golden Gate exposition on fun sone was darkened for an hour and a half tonight when a fuse blew out on a feeder electric line, leaving riders stranded on ferrls wheels, sky rides and other gayway concessions. . . "T Electric crews hastily strung a second power line ; to . take . the overload off the single line-, and exposition officials said it was -one of those things, which wont happen again." ;. . t '' - x The exposition ' opened today, and the first-night crowds on the gaily lighted fun sone were caught unawares when the power went off. Thousands of hungry people were waiting at the time before eating stands which were Incapaci tated when the power failed. -- Concession attendants resorted to hand Wheels to move the fer Italy's Press Drive Against France Grows Fascists Say Morocco and Balearics Are Sorest Points American President Is Perturbed Over News About Europe LONDON, Feb. 1 8-(;P)-Reliable foreign circles said tonight that Italy quietly had called up 150. 000 reservists while her anti French press campaign gathered momentum. This" partial peacetime mobilf xation, it was said, would con tinue with a total of 300,000 re servists scheduled to be called up "by the spring." It was pointed out that Italy officially announced Jan. 25 that 60,000 were being called up. The reported call lacked confirmation in Rome. Authoritative British sources said the foreign office was well aware that there was considerable military movement in Italy and was trying to ascertain just how tar such movement was "abnor mal." . ROME, Feb. 18 - OP) - Fascist sources, informed of .reports that President Roosevelt had received alarming news from Europe, point ed to the Ba4ear4oJsIands and Spanish Morocco tonight as the most obvious trouble spots. ' Some foreign observers thought the Italian-French colonial bor ders on the north and east coasts of Africa also were danger spots. By JAMES C. OLDFIELD LONDON. Feb. lS-(JP)Kar-ope's harrassed statesmen, agree ing with President Roosevelt to night that European developments were ominous, foresaw the possi bility of a new international cri sis at an early date. While democracies and dictator ships took to the Spanish nation alist capital at Burgos their fight for European domination witb Britain and France bearing terms of Madrid's surrender there . were these new danger signs: France took extraordinary de fense precautions in Tunisia and shiped heavy artillery to her key colonial port of Djibouti after re occupying a strategic Red Sea are seeded to Italy under a 1931 accord with Italy subsequently de nounced. The British government, reli able sources disclosed, was wor ried by information it had receiv ed that German army officers have been attached to Italian gar risons In Libya. It also was said to be aware of important troop movements in Italy and to be seek ing to establish how far they were "abnormal." KEY WEST, Ha., Feb. li-m -President Roosevelt, 'concerned over a possible new international crisis, sailed for the Panama can al fleet maneuvers today after ' warning the world anew that the Americas were determined to ward off the "ugly truculence of autocracy." . Official reports reaching him of possible new territorial demands backed by threats of aggression caused the president to intimate before embarking that he -may have to cut short his journey and return to Washington before the scheduled March 4 date. At a press conference after lunching at a civilian conservation corps camp at West Summerlia Key, Mr,Roosevelt said informal (Turn to Page 2 CoL 5.) rls wheels and other mechanisms which stopped, in order that pas sengers might disembark. Two persona, however, who were high up on a ferrls wheel, could not be reached, and spent the time la darkened suspension above the street. :'-;-,v.-'-.-'.v-?"'V;- 3"-'j.-;"-.--T".:4- Official attendance at the ex-, position was .199,042 at t p. m. The amplified voices of Prei -dent Roosevelt and Governor Cut- -. bert L. Olson rose above .the did" I ot 'Treasure- Island construction work to open formally the $50, 000,000 Golden Gate exposition to a constantly swelling flood of visi tors. . -. . , t " ' : Ferry boats and automobiles began pouring customers onto the architect orally pe jewelled 400- V acre nan-made . Island eren be foreman army ot all-night workers ; (Turn to Page 2, Col. 1.)