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.)