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)