Accurate News I In The Statesman yosrtl I find foil Associated Press t reports from . trained re- 1 porters all over the globe I and local news stories by ! The Statesman's own staff 1 OO YT v leather Cloudy with occasional rala today and Wednesday. Max. temp. Mon. es, vain. 99. River SJI ft. South wind. EIGHTY-NINTH YEAR Salem, Oregon, Tuesday Morning November 7, 1939 Prict 3c; Newsstands 6 No. 193 .71 TUUHKD. vf rr Oil 1V1 O-L. Ni. WN j : j K II II M, W I I 1 I 1 1 . H. Mil ' County Budget Gets Of Increase ' of $18,500 la Well Within Law of V ; Limitations . '' . Page Queried on Payment of Special Attorney 1 Services The Marlon county budget com mittee, with a buret of speed which belied relatively slow pro gress made during . sessions last Friday and Saturday and yester day morning, during the after noon yesterday, wound top revi sion and approval "of the 67 items comprising the tentative county budget for 1940. " ' . Pending completion of tabula tion of . the new totals resulting from consistent if not drastic re Tlslon by the budget committee, total expenditures and total tax levy.as required by the revised budget were not available at the office of County Clerk U. Q. Boy er last night. As submitted to the commit tee, the budget showed total ex penditures Jl, 191, 654. 10, of which $508,513.10 was to have been raised by the general proper- . with tho .-oof loft tn reve nues other than taxation. In the hands of the budget committee, the total was lowered by several thousand dollars, with the largest single cut amounting to $10,000 in the $70,000 appropriation for county roads, bridges and ferries, leaving $60,001) for this purpose. Estimates Show Increase Of SJ18.500 The original estimates. Which showed an increase of some $18,500 over last year's budget, were well within the six per cent limitations prescribed by law. -he budget as revised by the commit tee yesterday will probably come within a few thousands of dol lars of this figure and so remain well within the limitation re- $15,590 in relief appropriations. Heaviest work which the com mittee undertook yesterday, in point at least of , amounts dealt with, were the school, welfare and road appropriations. The school budet, totalling $198, (Turn to page 2, eol. 1) . ' Action Is Deferred On Ship Transfer Vessels Seek Panamanian ; Registry to Carry i ; Goods Abroad ' WASHINGTON. Nov. . -(-The maritime commission " an nounced tonight. It was deferring flnal- action"- on 'the United States 'lines' application to trans fer nine of its 11 transatlantic Teasels to. Panamanian registry., a step which would allow them to carry goods to the belligerents of Europe. ' ' X ' ii ; Earlier- Information ' from , the commission had Indicated that it was approving the application to transfer eight of the ships, but after meeting all evening It issued statement at midnight saying: . "The - commission is exploring all the circumstances Involved in the transfer, as is customary when such ' applications are filed. ... The commission hopes to be able to reach a final decision prompt ly." " - S ' r Before the unusual night meet ing. Commissioner Max O'Rall Trnitt told reporters approval won Id not contravene the new neutrality act, .which forbids American-flag ships to go to the danger tones. J "I . don't see any element of a dodge at all: I think it's a com pletely sound. bonaflde situation all around," Truitt said. Approval Committee Pacific Coast Foreign Trade In September Is $55,746,000 SAN FRANCISCO, Nov. -JPr The Pacific coast did $55,764,000 worth' of foreign trade in Septem ber, the first -month .of . Europe's war. ' - V - . " It was the biggest month for the exporters and Importers since the climax of the post-strike traf fic boom In May, 193 7 ; -V " September trade for this coast went $10,000,000 higher than that of the preceding month and 'near ly $18,000,000 higher thanit had been two' months earlier, the bu reau of foreign and domestic com merce said. - - " '- -. r ' : Just how much of the traffic With other lands earner from, the war, as opposed to general causes linked with rising business and One particular stimulus- fear of a Coastwidev shipping tieup was difficult to determine. . In nine months this year the three Pacific states did $40,10 900 worth of business abroad. That was comfortably ahead ol the $387X1.000 total for the 19Jt nerlod.- - .: Lost Boy Is Back At Arizona Home . .::- r 4 f ( N It , " BRUCE CROZIER . Youth little Worse I For Experiences Doctor Prescribes Plenty j 6f Rest After Six Day Ordeal WINSLOW. Arix., Nov. $-(flV Brnce Crosier, 7-year-old school boy who resisted hunger, exhaus tion and exposure during a six day ordeal while lost in a nprth ern Arizona wilderness, was back at; his home tonight, apparently little the worse for his hazardous experience. : t ' His parents, Mr. and Mrs. R. E. Croxler, brought Bruce home from a Holbrook; Ariz., hospital where he was taken after finding the automobile of two game hunters Saturday., -. , He was allowed to walk around the house and appeared able to eat normally. Dr. R. L. Davis of Holbrook prescribed plenty, of rest and recommended that Bruce remain away from school all this week. .. . , Nazis Threatened To Sink Steamer BERGEN, Nov. S-(P)-A threat by the German prize crew to' sink the captive freighter. City of Flint if her American sailors gave ."any trouble" was 'disclosed today by Captain Joseph A. Galnard, skip per of the vessel. : ; . In a broadcast, the 50-year-old captain' said the . lieutenant com manding the prize crew told Jhe Americana in good English that "if you make trouble, 1 will put yon in your boats and sink this ship." . . - -'- - I Thls Is a war . measure," he Quoted the officer as saying, "and whether, any of os like it or not, I must carry, out my orders.' ! ; ' . ' 4 - " - ' : . Billy Rote and Eleanor , Ilolm to Many on Friday r - : - - NEW YORK. Nov. -V-Show- man Billy Rose and Eleanor Holm, shapely aquatic queen, will be married here Friday. - Rose said tonight the ceremony would take place in the chambers of New York State Supreme Court Justice Ferdinand E. Pecora. " - - September exports rose to $38,r 985,792 from $38,476,768 in the preceding month Tand compared with $30,442,633 in the : 1938 month. ' - --'V ' ' - i Imports went up to $16,778,375 from $13,158,066 in 'August. The September 1938 - imports were Ul-C9;iafT -'-4r'S ,Tfe gain in Jmporta. tor - nine months over the 1938 period was enough to overbalance therdrop in exports fordhat period. Imports totaled . $124,771,163, ? or - more than 16 million - more , than last year, while exports, running much heavier than. imports with $276. 387,754 checked at customs offi ces, lacked less than four millions of equaling the 1938 nine months total. ' . ! - - - . ; - ' 'The district reports showed big export gains at Los Angeles and in Washington. Washington also bad a good gala in. imports, and Los Angeles a fair upturn, while San Francisco had a big gain in im ports but a drop in exports- of noteworthy proportions. Calif orni?;I Votetron . - jo t - Ham iPlan Opponents Say Unless 75 Per Cent Vote, Idea Will Carry Financial Chaos and State ' Bankruptcy Predicted if Event ins SAN FRANCISCO, Nov. 6.-V The last words for and against the sweeping .California "Ham and Eggs" pension plan were said to day and two armies of campaign workers prepared for the show down at tomorrow's election. Opponents of the widely dis cussed plan openly declared that unless 75 per cent of the regis tered voters went to the polls the plan would carry. They hare re peatedly predicted financial chaos and state bankruptcy in the event of its final victory. Although the odds . in profes sional betting circles were against the "Ham and Egg" forces, they appeared quietly confident. O. V. Hanklns, San Francisco manager for the pension plan, predicted the city would yield it a 80,000 majority. San Francisco voted heavily against a similar but less ambitious plan a year ago. No definite predictions were forthcoming from Los Angeles county, with Its 1,510,524 regis trants, more than 41 per cent of the entire state's potential vote of 8,605,907, but Hanklns said he ex pected the whole southern area, home of the pension scheme as well as of the Townsend plan and other age compensation proposals, would faror it heavily. New Plan's Army Numbers 400,000 . The new "30 Dollars Every Thursday" plan, backed by the pennies and efforts of an army claimed by its leaders to number more than 400,000. would make radical changes in the state's eco nomic system, pay "$30 in scrip weekly to every unemployed citi zen over 50, revise and add to the tax laws, virtually outlaw all forms of production curtailment, and declare private charity con trary to public policy. It would confer great powers upon an "administrator" who would not be subject either to the governor, the courts or the legls . (Turn to page t, col. 2) Government Wins Three Victories Supreme Court Upholds Technical Phases Of Tax Laws WASHINGTON, Nov. The government won three victo ries in the supreme court today when the tribunal upheld tech nical phases' of "the income and social security taxes and affirmed a federal agency's exemption from state taxation. With no dissenting opinions but With Justice Butler absent because of illness, the court ruled In its first decisions of the current term that: . v. , ' . . 1. -Mortgages of ' the home owners . loan corporation are. not subject , to state documentary and recording taxes which are levied to raise revenue. (Decision read by Chief Justice Hughes.) 2. Government contractors get refunds for federal social se curity and state unemployment compensation taxes under the clause, customarily inserted in government contracts. ; requiring the government to refund'any tax it imposes on material after a con tract Is signed (by Justice Black). 3. Companies which elect to list certain items as "development expenditures" rather than as de preciation in computing net in comes for tax purposes must also deduct the development expendi tures when computing net income tor the purpose of figuring per centage of depreciation (by Jus tice Douglas). " i r , The justice department said the last decision would affect a hun dred other cases involving about $9,000,000 in taxes. It was re turned in cases involving the Wll shlre Oil company of Los Angeles and. the F.H.E. Oil company of Fort- Worth, Tex.- The treasury sought $73,532 incomer taxes for 1929 and. 1930 from the Los An geles company t and . $8,419' for 9 32, from .the .For.tWorth..con; Two Generators ' - To Be (nnected i ' PORTLAND. Nov. , -pV-Bon-neville dam's first two generators will be connected in about 10 days with the "backbone", power line to Vancouver, Wash. dam offi cials said today. - - The connection win permit Bon neville power to - pass west near Camas and Wubonnl to th "am. pere" substation across the" Co- Amidst denials est both sides, Rady TaQee, orchestra leader, and Judy iumbla river from Portland. Pow- j Stewart, showgirl, continue to be seen in each other's company, cr will be carried back to Oregon I thus keeping stories of romance In the air .The tWo are shown din by lines soon to bo erected. V r lntn new Tork.' , This Isle, too ;Isr Among Demands '.' :" Made oh Finland by Soviet Russia rrr-- - Anions demands made npoa Finland by Russia Is transfer of the Is land of Hogland in the Gulf of Finland, shown above. According to officials, Finland Is prepared "to snake a far-reaching settlement" with Russia bat will reject proposals which "would rob ns of the Cwibility of defending the independence and neutrality of our d." Defensive Measures Tightened by Finland Censorship Placed on Mail, Telegraph Messages and Telephone Calls to Foreign Countries hy Government HELSINKI, Nov. 6 (AP) Facing the critical stage in negotiations with soviet Russia, Finland will tighten her defensive measures still further tomorrow by placing a cen sorship on mail, telegraph messages and telephone calls to foreign countries. The danger of spy activities, a government spokesman oald. la the reason for the cen Legion Grateful to Salem Merchants Resolution of Appreciation Passed in Regard to Armistice Closing Appreciation of Balem mer chants' decision to close their stores on Armistice day, Satur day, was expressed in a resolu tion passed by Capital Post No. 9, American Legion, at its Mon day night meeting. . In the same resolution the veterans' organiza tion expressed the hope that all eltixens -will cooperate in the "Buy Friday" campaign so that the merchants will not suffer .finan cially, for their patriotism. Similar sentiments were ex pressed in resolutions adopted at a special meeting of Marlon Post SCI. Veterans of Foreign Wars, urging cooperation In the "Buy Friday- program which had been suggested by - Phil RIngle, the VFW commander, as a solution to the Saturday closing problem. Other action at the VFW meet ing was aimed at full participa tion by all veterans in the Armis tice day exercises.., : . At the Legion meeting several members spoke appreciatively of the merchants" action. At - the same time members of the post's Armistice ' day committee urged general participation In the day's events so that the holiday's - ob servance may prove to be fully Justified. ' - Members were advised to re (Turn to page 2, coL I) - Showgirl and Orchestra Leader Say That This Is not Romance - T X ! 1: i'i . ..;vv:-:-xw.VK'ft-:' sorship, which also will apply to press telegrams and telephone calls. . , The government still has taken no action on new instructions for the Finnish delegation which is waiting in Moscow to resume con versations with the Kremlin. The soviet is demanding, among other things, a naval base on the south ern coast of Finland and border revisions to "protect" Leningrad. ; Most diplomatic observers here expect a turn in the negotiations late this week. In addition to the tightening of communications regulations, the government was empowered to confiscate any publication con talning matter considered harm ful to the nation. ' Another decree gave the gor ernment authority to present the movement of civilians in specified areas. A feeling of uneasiness in some Helsinki circles followed an nouncement of the new measures over the radio. Temporary sus pension of negotiations in Mos cow and the repeated announce ment that the cabinet had . not even considered the Russian gov ernment's word to the Finnish delegation, when viewed with the supplementary emergency .meas ures, led many unofficial observ ers to believe the situation .had changed for the worse. i Injuries Prove" Fatal ' .V ' ' " - "A ." - - : NEWBERO: Nov. 6-(F)-Rnth Klnsey, 8, struck by a car Satur day: night, died yesterday. Police Chief Arthur Casteel said wit nesses Informed him 'the young ster ran between parked cars into the path of an automobile driven by Roy M. Koch, Newberg. Molotof f States Soviet to Keep Attacks US, - Britain and France " on Jubilee A . . of Revolution.. t , - - Discontent of Masses Is Provoked by War Says Premier MOSCOW, Nov. e-iPV-SovIet Russia will continue an "nndevl ating" policy of peace, Premier Molotoft declared today, while capitalistic countries "provoke the discontent of the masses" by their war policy. Attacking the . capitalistic" United States, Great Britain and France, the premier In a strongly worded address on the 22nd an niversary of the red revolution, declared soviet Russia was now "solidly . united and powerful" while "capitalism must perish be cause It Is so old, weak and inefficient-" In Great Britain and France, he asserted, the "interior situation" is bad because deliberate prolon gation of the war with Germany is "provoking the discontent of the masses and preparing new flames of anger against the capi talistic newer." Says Embargo Repeal xa uniy Mass: Likewise, he told a cheering throng of communist party mem bers at Bolshon Onera House, the United States repeal of the arms emoargo simply is a "mask to cover their struggle for profit." Molotoff's speech opening a three-day celebration coincided with a Communist International manifesto urging British, and French workers to "go against those who faror continuing im perialistic war." Molotoff minced no words In declaring the Russian foreign pol icy of peace would be continued . (Turn to page 2, coL 5) - - Change in Party line Confirmed 'Popular Front' Technique . Formally Abandoned By Communists NEW YORK, Nov. 6-A)-om-munl8ta confirmed today the adop tion of an historic change In the party line .which apparently means open soviet encouragement of par ty workers in this and other cap italistic countries and the - formal abandonment of the technique of the "popular front." . - This'confirmatlon was made in Moscow by Premier Molotoff, in a speech saluting the 22nd anni versary of the red revolution; and by a manifesto of the communist international . nrging British and French workingmen to "go against those who favor continuing imper ialistic war." - In New York, it came also in what was substantially a manifes to to the American party member shipthe publication by the offi cial organ. The Daily Worker, of the full text of speech made last night by Earl Browder, national communist leader, in which ' he suggested the United States was "the country-which is the most ripe, the ; most prepared, for' a Quick transition to socialism V Speaking last night in Boston, Browder took in almost every ma terial respect the same tone taken a day later, across half the world in Moscow, by Molotoff. Both de nounced Britain and France as "imperialist"; both struck at the United States, Browder asserting that the "bourgeois" here was "preparing to come to the rescue of their class brothers in Europe against the rise of the j-evolutlon-ary working class." - German, French Planes in Combat - ? PARIS, ' Nov.- i-VPl-A violent aerial combat - between 27 ... Ger man and nine French airplanes was reported by the general staff tonight, with the French claim ing to have shot down nine . of the enemy and escaped themselves without a loss. : v . . " -4 The encounter was . announced as German . ground forces, sup ported by.arUlleryt were reported Increasing their pressure on . the French frontier town, of Forbach. ;The French air. squadron took the Initiative against the .German, formation ; three, times; Its size, the general stiff said, and at least seven of the Invading planes fell behind the French, front' lines, ; i T ....:.' ' ""' 2r : : ! f ; '- 'r 14 Dead in Crash . MANILA. Nov. 7-(Tuesdi- pP)-Fourteen Filipinos . were known - dead, three, believed drowned, ' were missing and sev eral others were - badly - Injured when a - passenger bus ' crashed through an old wooden bridge into . the storm-swollen Onoban river yesterday near La Castella ns, occidental negro province. : Peace Policy She Confers With J King of Belgians 5 . :,-. ....... 1 J m . : - U .... .... A QUEEN WILHELMINA Leopold and Dutch Queen Have Talk Belgian Foreign Minister Sita. in to Discuss Situation THE HAGUE, Nov. 7-(Tues-day )-(') King Leopold of the Belgians hurried here on a sud den motor trip last night and conferred with Queen Wilhelmina of The Netherlands at her pal ace until after midnight. . Leopold brought his .foreign minister, Henri Spaak. with him, and Spaak and The Netherlands foreign minister, Eelco Van Lef fens. Joined in the palace consul tations. Everything pointed to urgency in the talks, although official cir cles gave no Indication of their specific nature. Official sources said only that Leopold came here to "discuss some aspects of the International situation" with the queen. Informed circles here dis claimed knowledge of any new more by Germany which might have caused the urgent conver sations. On the other hand, com petent sources said it was unlike ly the sovereigns were consider ing any. peace move. The entire question of keeping the low coun tries out of war and of defend ing their vital interests was be lieved under discussion. . Lights gleamed from the Noor delnde. palace until 1:30 o'clock this morning as the conferees met. It was reported from Brus sels thst the Belgian foreign of fice also worked far Into the night. It was learned Leopold- de cided to postpone departure pend ing further talks later today. : There were suggestions, entire ly without confirmation, that-the foreign policies of Belgium ' and V'y" Tunr'to' page 2, coL 4) V- "'--' ' ' ' , i - '' Control- Projects ..: i WiU Be Rejected PORTLAND. Nov. sHTV-Three applications tor flood control proj ects on the Oregon coast have been submitted by the U. 8. engi neers ' with the. recommendation they be rejected "st the present time' CoL C. H. Lee, division engineer, said today. Lee said the benefits did not Justify the cost of the projects. Applications 7 were made for im provement of the Miami, Trask. Tillamook, Wilson, Nestucea and Alsea rivers..- .- Pensions Betting Confront Voters in Election " ((By Associated Press) Old, age pensions,, part-mutual betting, . prohibition and a few contests Indirectly involving Roo sevelt policies confront the. vot ers with a miscellany of. issues in today's nation-wide -elections.- vTo complicate still further the task of discerning national trends after the ballots have been count ed, this hodge-podge, of questions is blanketed with a craxy-qn:t of local lasues almost as numerous as tie candidates themselves. ' Eat wMl mayoral elections in several cities may rrovide sons indications of national sentiment, national interest is fastened first of all upon the question -,of old r pensions.1 In two states, Cali fornia and Ohio, that issue is up tor settlement by referendum. . .The' California voters are called upon to make "yes! w "no" decision upon a variant of the ham and eggs" plan which they rejected by a scanty margin last year.'., - Tha Ohio old age pension cam- Aldermen Take No Action on Recorder Post t " Decide to Let Grand Jury Do Investigation of , Audit Disclosure Sum Reported Short Wcelc . ago Made up by 3rd l Turnover Monday i The cltr council Avidnt A Intention of asking Recorder A. warren j o n s to resign si it ground through an agenda of routine business laat nfrht ant adjourned early. . The aldermen at a csucus yes terday afternoon had A the status of Jones' office, on the oasis or the special sudltor's re port of a week ago showing a $4081.39 unbalance in M but, contrary to published predic tions as to their course, had de cided to leave further responsi bility trt tha Marlnn rnnnt. Jury In Investigating the matter. jones ,- snnounced after the council session last night that ho had reappointed Alfred Mundt as his bookkeeper, r rescinding his cuon oi Baturaay in discharging him. r 4 Jones Makes Statement la Mundt Situation ' "In order that there may be no misunderstanding I wish to stale that my action in relieving Mr. Mundt of his duties as bookkeeper was not motivated by sny desire on my part to blame hlra for any alleged irregularities In connec tion with the office of recorder, Jones explained in a written state ment. "Mr. Mundt has at all times been honest and efficient In his work. After several conference with members of the city council and the mayor I have decided that it perhaps is best, taking all things Into consideration, that I restore him to his former posi tion. I do this in the spirit of cooperation and in the sincere de sire to see the books of the city kept in the best possible man ner." 1 The statement reiterated Jones' ' previous assertions that he was "assuming full responsibility for the affj'trs of the office." Munac, with whom the recorder conferred yesterday afternoon, has agreed to return to his former position as bookkeeper sfter tak ing a few days' vacation, the state ment added. (Turn to page 2, col. 8) Signal Given for Park Completion City Council Grants Cliango r Of Building Zone to ' ' Speed Action "Go" signal for completion Ealem's new baseball park. Georjt B. Waters field on South 25th street, was given by the city conn- -cil last night when it unanimously granted a needed change of build ing sons after suspending its rules to speed the action. No protests . of the change were made at a pub- . lie hearing -held earlier in the meeting. Another tone change measure, ' afiDlyinar to thm Hrahfr ant nn.K.I properties immediately north of in new nign senooi, was tabled until next meeting. " ; Backers of an ordinance prohib iting operation of tobacco vending machines within the city yielded a point, on the advice of City At torney Pool R. Hendricks, and agreed informally that he might compromise in a pending injunc tion suit against the measure, lie said a recent amendment desig nated to tighten the ban on the machines appesred to be unconsti tutional but the original ordin ance, allowing use of the machines in .buildings, under .supervision, ' (Turn to page 2, col. 7) s paign Is led by Herbert S. Bige low, Cincinnati '. clergyman, ll calls for payments, supplementing other "Income to guarantee It ti monthly - to single persons who are over -0 and retired, and $3 9 to couples. It would be financed by a state .Income tax and a levy upon' high' priced real' estate. ' Both proposals have aroused a storm of controversy In their re spective: states so . intense la. California; for ' instance that 'an accompanying'-', referendum" o n state , control of oil production has been virtually overlooked, al thouglr the proposal has the ap proval of several federal official Including Secretary Ickcs. Opponents of the pension plan. Including Gov. Colbert T. Olson (who acknowledges he was elect ed last year with the assistance of "ham and egg" votes), hav .Condemned tbe scheme as tn workat'j r 1 a burden on t! very people it is Intended to 1 Opposition arguments in Cl'o ' (Turn to i:-e 2, cel. S)