Basketball Scores appear first la Tho Oregon Statesman. : While yon sleep. Statesman report era cover the games. Read boat tbem over your break fast. . . . Weather Unsettled with raia today, ad Sunday; rala or snow orer moan tains. Max. temp,' Friday 51, mln. 4S. River 141 ft. South wind. EIGHTY-NINTH YEAS Salem, Oregon, Saturday Morning, December SO, 1939 Price 3e; Newsstands 5c' No. 239 ykm EskcIi Other Mmm XL JLiandis Is: Not Report Clears CIO Leader of Coast Charges Dean of Harvard Law School Finds no Affiliation "West Longshore Head - Not to Be Deported on Red Count WASHINGTON, Dec. 19-iPy-James M. Landls, Harvard law school dean acting aa a special labor department examiner, sub mitted to Secretary Perkins" to day a finding that Harry' Bridges, West coast CIO leader, is neither a member nor affiliated with the communist party. Landls' finding was set forth In a letter to the labor secretary transmitting his report on the de portation proceedings Instituted by the department against Bridges, at which Landls presided. He made no specific recommen dation as to whether Bridges should be deported although his finding was negative on the prin cipal grounds for deportation. Landls Informed the secretary that the evidence submitted "does aot permit" a finding that the CIO leader has communist affilia tions. Deportation Proceeding- " Began in March, 103S - "Bridges has denied that he was a commnnist. The deportation proceedings against Bridges were Instituted In March, 1338, on the grounds that he was a member of an or ganization allegedly advocating the overthrow of the government by force and violence. The 39-year old CIO leader, who came into labor prominence during the 1934 maritime strikes en the west coast, is a native of Australia. He came to the United States In 1920. The hearing afforded Bridges an opportunity to show cause why ho should not be deported and the government was faced with the obligation of proving two essen tial points to win its case. It was required to prove: first, that Bridges was a member of the party or affiliated with it at the time -warrant was served upon htm in March. 1938. Secondly, the government was required to prove that if Bridges was a mem ber or was affiliated with the par ty that the organisation advoca ted the overthrow of the govern ment by force and violence. Object of Communists Is Not Considered In his report to Secretary Per kins, Landls said he did not deem It necessary to make a finding as to whether the party "advocates, advises or teaches the overthrow of the government of the United States byforce or violence. . . " The next' step In the case ap proval or rejection of the Landls finding Is up to Secretary Per kins. Legal experts said that if she approved the finding her action would cancel the warrant Issued against Bridges and close the case. The Bridges proceedings have been a subject of controversy In and out of congress ever since the department issued the warrant. Most of the criticism waa aimed at Miss Perkins because the hear ing was not started soon after is suance of the 1938 warrant. The hearing was . convened in June, 1919. She replied repeatedly that the delay was unavoidable until the supreme court could rule on a somewhat similar deportation ease involving the question of communist party membership as grounds -for deportation. . . Membership Not Baals - ' For Deportation : " ' T ' The high , court In the other ease Involving Joseph O. Streck r of Hot Springs, Ark that an alien could not be deported sole ly because ho once held member ship in the communist party. The court did not rule directly on whether a communist could be de -ported. Landls report was compiled from an t,0 00-page record ac cumulated during an '11 weeks hearing at Angela island. San Francisco. The hearing ended September 14. His report running 78,000 words and covering 1S2 printed pages, has not yet been made pub lic by the labor derailment, The text of Landls' letter out lining his finding follows: To the secretary of labor: I have the honor to submit here with my findings In the matter of the deportation of Harry R. Bridges. . These findings are, perhaps, un usually long and detailed but I have thought it desirable to state (Turn to Page 8, CoL 3.) HI! ! fl 0' TTD Jl Red Affiliate 'Stormy PetreF Of Coast Clear Object of a deportation attempt begun! nearly two years ago, Harry ! Bridges, west coast CIO longshoremen's leader, last night was cleared of charges of communist affiliation In a re- port to Secretary of Labor Per kins made by Dean Landls of the Harvard law school, who heard the proceedings as judge. It's a little late for her to be about, but we ran into Mrs. Santa Claus yesterday. She's the wife of Mr. George wy att, who has been in the San ta Claus business In these ; parts for nigh onto ten years. Mr. Santa Claus (or Mr4 Wyatt if you are one of those unbeliev ers) is the orig inal Santa Claus on Salem streets. Foi a. aauaer. it. He started a long time ago as a department store Claus and for many years was a familiar Yule tide figure, especially around the Liberty street department stores. We didn't see Mr. Wyatt In action this year, because, great ly to his disappointment, he was able to ply his trade only two' days. He was the Sears Santa who got sick. And after the Sears people made a special trip to the coast, where he was liv ing, to get him, too. Mr. Wyatt-Claus in all these years has played the part of S. Nick up to the hilt. Purely on his own time he has visited state in stitutions, aged and sick persons and many homes. Mrs. Wyatt has been trying to carry on this year, but it's quite a load and she has n't yet completed the rounds. Mr. Wyatt's greatest pride is that his great white beard is the real McCoy. Once when he visited the children at the tuberculosis hospital, Mrs. Wyatt says, one of the kids asked if ho might tug Santa's beard. Mr. Wyatt stooped down and the little fellow tugged and tugged. -' "Gee," said the tot when ho guve up, -They stay on. That : other . Santa Clans' whiskers -"came right off. - , . -.. . : - ' " Marvin Byers, president of the Ton Can't Do That to Mo Twice club, the sole aim of which is death to the double feature, was heard to remark yesterday of a theatre manager whose cinema palace has a predilection for B pictures,' "Why 111 bet that guy even takes Grade B milk at (Turn to Page 1, CoL 8.) i i rum 1 ii il l ' t " .: .. ' . ; - tj " ? if . i , - v - L- -fcO - t En toe Ear.. ! - Paul Hauser's Column t . 4 7 New US Budget Is Expected j To Contain Some Surprises , WASHINGTON, Dec. H.-JPh A' budget containing tome "sur prises" .was predicted today, by a treasury ! official while President Roosevelt was telling correspond ents ho had , arrived at a final figure which ho called good.'! What i the surprises might be the official would not ' disclose, nor. would Mr. Roosevelt reveal his total budget figure. - But reports of apparent authen ticity .have placed the - budget's total at about $9,250,000,000. with a deficit in the neighborhood of 13,000.000.000. Both figures are smaller than the correspond ing items ; for the current - fiscal year. j ' ' Tho budget, to be sent to con gress Thursday, is the executive department's outline of proposed government expenditures in the new fiscal year, beginning . next July 1. A messenger will take it from the White House to the cap itoL but tho president will deliver in person tho previous day Wed nesday his annual messago on the state of the nation. -, imaar the thousands of fls- res which comprise the budget. Wheat Export Subsidy Ended ort Payments Will Be Made Only on Flour j for Philippines $33,000,000 "Bounty" Paid out Since Plan Started WASHINGTON, Dec. 2 Prospects of a short crop and a wide spread between domestic and world price levels led the agri culture department to abandon its wheat export subsidy program to day. Secretary Wallace announced that after 11 a. m. (PST) next Wednesday the agriculture de partment would pay a subsidy only on the export of flour from Pacific coast ports to the Philip pine Islands. Since inauguration of the pro gram in August, 1938, in an ef fort to regain and hold the Unit ed States' "fair share" of foreign markets, the department has paid a bounty on 128,250,000 bushels of wheat at a cost of about 333, 000,000. The subsidy rate on some recent sales was as high as 33 cents a bushel. Unless there Is a drastic change In the relation between Ameri can, and foreign wheat prices, lit tle or no additional wheat will move abroad, officials said. Do mestic prices have been running between 30 and 38 cents a bush el above world prices, thereby placing American grain at it mar ket disadvantage. . Total exports for the season are expected to be little more than the 24,600,000 bushels. Including flour, already sold under the sub sidy, compared with total sales of 118,054,000 bushels last season and a long-time annual average of 70,000,000 bushels. This na tion's "fair share" of foreign mar kets has been placed at about 100,000,000 bushels by farm of ficials. Officials have forecast that the 1940 wheat crop In view of the drought, will bo only 600,000,000 bushels, or about 80,000,00 bushels below a normal season's needs, 1 but Wallace emphasized that the United States had ample supplies. He said that next year's crop would bo supplemented with a surplus of about 254.000,000 bushels of grain from 1 previous years. It is the agriculture de partment's policy to keep a re serve of between 200,000,000 and 250.000,000 bushels at all times. Wallace credited the subsidy program and the government's commodity loan policies with preventing domestic prices , from falling to the world level.- ' He said that farmers who co operated with this year's farm program were receiving about 90 cents a bushel for their wheat, In cluding government subsidies. He said this was still short of the parity" or so-called ."fair" price of 81.13 which growers should receive. . Woman Lucky PORTLAND, Ore., Dee. 2 )--Jane Saddler, Portland, figures she is about the luckiest person over to be robbed. Last week a burglar stole household articles worth 8114 and IIS in cash from her home. Today the articles were mailed back. two are expected to stand out in particular a recommendation that about. $1,000,000,000 be ap propriated for relief, and that na tional defense expenditures bo in creased , by $500,000,000 or to. The billion-dollar relief figure compares with a fund of about $1,500,000,000, for the present year. - ; V- .. ; The president also-has been in sisting that other department and bureau heads hold, down the esti mates of their needs and report edly has been slashing their fig ures right and left. - - - t While the budget is essentially a detailed estimate of how much each .little or big branch' of . tho federal "government will need to keep it going in the next fiscal year, it is accompanied by an es timate, necessarily vague, of what the government's Income may be expected to be in the same period. Tho budget has no binding ef fect upon congress, being merely a request for funds which con gress may approve, increase, de crease or reject. - (Turn to Page 2. CoL 4.) BySh Crop State Welfare Heads Protest Security Fiat Submit "Unwillingly" to Federal Board Merit System Decree : State's Right to Set up Own Rules Reserved i Budgets Okehed PORTLAND, Dec. 29Hf)-The state welfare commission "ac cepted under protest" today the social security board's order to comply with the merit system In personnel matters. ' The commission reserved the right to establish its own rules to put the standards into effect pending a ruling by the attorney general on the board's right to enforce its order on Oregon. 550 Present Employes Affected by Order Under the board's order, 850 commission employes . would be forced to take qualifying examina tions to hold their jobs after hav ing been employed two years un der Oregon's own government-approved merit syBtem, Administrat or Elmer R. Goudy said. However, unless Oregon com plies, the federal board may withhold relief funds from the state. A $35,000 revolving fund for Multnomah county's food stamp plan, to go into effect January 2, was approved by the commis sion. Goudy said a larger fund might be needed later for tho business, which will allow relief recipients to buy $1.60 worth of merchandise, a third of its sur plus commodities, for $1. The plan will result In $1,250, 000 worth of new retail business in Oregon in 1940, Chairman Jack Lnlhn predicted. . t (Turn to Paso , Column" IX;. New US Citizens Are Entertained Smiles Light Faces of 66 Who Have Received Final Papers Smiles lit up the faces of the members, of Marlon county's newest group of American citizens as they received, from County Clerk U. G. Boyer, their final papers during a reception given in their honor by the Federated Patriotic Societies of Salem last night at the chamber of com merce. Each of the members of the 88 pupil class granted final papers beamed a smile of satisfaction as he or she marched to tho front of the room to receive them. One, an Irisher for sure, held aloft the small American flag given each and cried out, "She's ours now," while the gathering applauded. Dr. J. C. Harrison, pastor of the First Methodist ehurch, told the new citizens that America of fers them faith in themselves, faith in their country and faith in their government. "America offers you many privileges," Dr. Harrison said, "and in return it expects you to give your best in character. -Above all,' ho said,- "don't be intolerant' Glen Adams, president of the Federation, welcomed the new citizens, warning them that their duties had Just begun. Bertha (Turn to page 2, column 1) Breakwater Asked For Tort Oxford WASHINGTON, Dec. 29-ff)S. A. Lawrence, Port Orford record er, was Informed by Senator Charles McNary today that he "had reason to believe" the army eenglneers. had reported favorably on need for a breakwater at Port Orford. Lawrence's letter to tho sena tor said a breakwater would re vive business, afford a safe har bor during winter, storms and bring new industry to the south western Oregon section. ... Lawrence added that the har bor .was selected as a refuge in 1880 but nothing further was done by the government. ,.- The senator replied that the board of army engineers would consider a harbor survey on January 28 and "haul reason to believe the recommendations were favor able. -. . . 2 Sentenced for . Tavern Robbery PORTLAND, Ore., Dec X9-(ffj i-Wilbur Brown, 24, jointly indict ed with Oswald F. Hess. 19, on a charge of burglary of a tavern here . December 4, pleaded guilty today and was sentenced by Cir cuit Judge James V. Crawford to two years In tho state prison. Hess, shot by tho tavern owner daring the holdup. Is still in a hospital. . . - . Agreement to Arbitrate ' Averts Papers Signed; 6 Hours Ahead Of Strike Call Salem City Buses to Continue Usual Schedules Wages Sole Question for Discussion hy Owners, Drivers Strike of Oregon Motor Stages drivers, mechanics and helpers was averted by a six-hour margin last night when employe and em ployer representatives signed an arbitration agreement in Port land at 6:45 p. m. The strike, called Thursday for 1 a. m. today, would have halted city street bus service In Salem and Eugene and interurban serv ice to many Willamette valley communities from Portland to Eu gene and from the Cascades to the coast. The arbitration will be confined to the question of wages, a point demanded by the employes and issue on which the strike call was based Thursday. Carried out under provisions of the onion drivers' contract which expired late In October, the arbitration will be conducted by one representative each named by the employes and the employer and a third who will bo selected by these two, or If they can not agree, picked by Judge John L. Rand, chief justice of the supreme court. Wage Increase Asked For All Drivers The Salem and Eugene drivers asked for an Increase in wages from 62 cents to 78 cents per hour and tho interurban drivers sought a raise from 2.35 to 3.5 cents per mile. Oregon Motor Sta ges mechanics also sought an equalization of wages paid in the Portland, Salem and Eugene (Turn to Page 2, Col. 8) State Forester's . Name Is Withheld Announcement of Nominee Waits Confirmation Expected Today The state board of forestry late yesterday afternoon appointed a temporary state forester but with held disclosure of his Identity pending confirmation on his ac ceptance. The. forester-elect -Is expected to give his answer today. Gover nor Charles A. Sprague, board chairman, said. The new man will fill the posi tion from which J. W. Ferguson recently resigned as of next Mon day. The board declined to explain details of the appointment, made after a 3 H-hour session, most of it closed, but an Informed source said tenure of the tempor ary forester was expected to ex tend 'over a period of a few months' to tire tho board more time to - select a permanent for ester. , Action on a letter recently pre sented by the Marion - County Taxpayers association asking ' for an investigation of fiscal practices of tho forestry department was deferred by the board until it has received a report from - a special audit now In progress. The report will be presented in mid-January. Nut Control Board WASHINGTON, Dec 29.-AV Operating methods of tho walnut control hoard drew ' a complaint from Sam A. Holden of Newberg, Ore., to Senator Charles L. Mc- Nary (R-Ore) today. : The walnut control board Is the brain child of the California Walnut association and it dictates tho whole program," Holden said, "The officials of tho Oregon coop eratives arc the local puppets. 'Oregon walnut property is a dead investment unless wo become divorced from CaUfornla domina tion. To be the tall of tho Cali fornia kite is finis to our "hopes of a change tor the better aa well as our Investments." ' ; The ''glutted." domestic nut meat market was 'caused by the walnut board cracking so much of the crop and "destroying the mar ket for nuts in the shell," Holden asserted. . Tho senator advised him that officials here said 40 per cent of tho crop handled by tho board was exported and 60 per cent shelled- Complain Drivers His Job to Name Bus Line Arbiter t - f V Jndge John L. Rand, chief Justice of the Oregon supreme court, ' whom Oregon Motor Stages company and employe repre sentatives last night designated to name a third arbiter in their wage dispute If their own ap pointees are unable to agree on a third man. Quintet Narrowly Escapes Disaster Scio Mother, 4 Daughters Nearly Asphixiated by Car Fumes A 27-year-old Scio mother and four daughters narrowly escaped asphyxiation from carbon monox ide en route home from Silverton in tho family automobile yester day afternoon. Captain C. M. Charlton, jr., of the Salem first aid car staff, reported. ' Gilbert Calavan of Scio was driving his family home on the Silverton-Stayton - road when he saw his 13-year-old daughter, Jean, collapse. When he stopped, Mrs. Calavan, their 4-year-old twin daughters, Vivian and Vir ginia, and another daughter, Jac queline, 6, disembarked, only to fall to the road, unconscious, Charlton reported. Calavan called for the first aid car from the McElhaney ranch home nearby. By the time the first aid crew arrived, all but Jean had regained full consciousness and she had partially recovered. Mrs. Calavan was suffering from shock. Oxy gen was administered to all five. Captain Charlton said all five would get along "all right." Cala van telephoned for a brother at Scio to come after his family, in another car. Neither - he nor a nephew, of Silverton, Iras affect ed by the gas. ; . ' Daughter Is Only Survivor NEW YORK, Dec 29--MIr-iam Solovleff, an 18-year-old con cert violinist, today was the only surviving member of a family which her father had sought to bring together again and then, falling, had destroyed. During the day her mother, Elizabeth, 88, and her sister, Vi vienne, 12, died of the wounds which Aaron Solovieft had In flicted on them last night. He fired at Miriam too twice, and missed and then sent the fifth bullet from his pistol Into his own head. Xl Or- Shooting Aero Board Seeks Effective, Safe State Aviation Program BY STEPHEN C. MERGLER l Indlcatlng an intention to move carefully and ' not hand out Jobs merely, as political " plums, . tho new. state board of aeronautics in appointing Captain: Leo G. De van ey as aeronautics director did so on a probationary basis pro bationary as to Its own program of aviation development as much as to Devaney as an individual. . Captain Devaney has outlined a program and so has the board. Their plans will be tried out for 90 days before an effort Is made to decide exactly what,' if ' any thing, tho board should , do to promote activity in the aviation field in Oregon, according to Lee U. Eyerly, Salem member of the board, . . :. - ' . . v. ; .- k Inspection of aircraft subject to state authority will bo placed In the hands of -federally licensed mechanics and pilots and their approval must be had before the board will issue a certificate . of airworthiness. - ' This constitutes a new Inspec tion policy on - the - state's part, Eyerly declared, and one believed likely to produce a mora thor ough job than in the past." Strike British Ship Limps to a On O wn Steam Battleship Crippled in Attack by U-Boat First Land Casualty ; s Announced by Officials LOXDOX, Dec. 30-(Saturday) (TP) The London Daily Herald disclosed today that' Corporal Thomas Priday was the first British soldier to be killed in action during the war. Priday was killed on Decem ber 9 while on patrol duty be tween German and British lines on the western front. LONDON, Dec. 29-()-The British battleship torpedoed by a German U-boat limped into port under her own steam tonight, the admiralty announced, with four missing and one of the crew ser iously wounded. The missing men were believed killed when the warship, one of Britain's 11 battleships, was dam aged by a German submarine in the war at sea which thus far has cost the British .14 naval vessels. Three Men ' Killed In U-Boat Attack . ho- admiralty issued - the fol lowing communique after the Ger man high command had an nounced a British battleship of the Queen Elizabeth class had been torpedoed "west of Scot land" by a German submarine: "A 'torpedo attack has been made on a British battleship by a U-boat. Some damage was caused - and three men were killed." - 1 Subsequently an unofficial statement : distributed by British news agencies said "It has been ascertained from inquiry at the admiralty" that the battleship (Turn to page 2, column 1) Many Turks Face Starvation, Col Death Toll of Earthquake Mounts Steadily at Blizzards. Strike "ANKARA, Dec 29.-AV-Hund- reds of thousands of Turks to night faced the possibility . . of death from starvation, cold and disease in quake-split Anatolia as blizzards and wrecked or snow blocked communication lines com bined to hinder rescuers. The death toll was mounting hourly, and officials said It might. reach S0.000. ..The number of persons injured or suffering from exposure was believed to be at least 30,000. Adding further to the fears of the populace was the prediction of authorities that more shocks might come in the next ten days. Director Fatln of the Istanbul ob servatory said that this week's geological disturbance apparently occurred 16 miles below the sur face of the earth and covered a wide area, and that as a result further movements might be ex pected before the strata settled. (Turn to Page 2, Column 2) O - By way : of " aviation develop ment, the board 'hopes to' assist flying :" schools,' coordinate' inter ests of state departments in aero nautics, foster construction of air ports along . highways, in remote areas and-in towns and cities and encourage-improvement of exist ing fields. . ' Captain Devaney was selected to oversee this program after three applicants had been Inter viewed Thursday and "as far aa politics are concerned, there were absolutely none involved In our selection," Eyerly asserted, i 'While Governor Charles A. Sprague told -his new board in mid-November that he questioned tho necessity of hiring a full-time "aeronautics Inspector," he Is willing to accept the board's de cision that a director of Its activ ities should be employed, ho indi cated yesterday. ' j ; , '"The employment of a state di rector of aeronautics is purely a board matter," the 'governor ex plained. "It is apparent that his services are necessary or Devaney (Turn to Page 3, CoL. 5.) ; 30 Days' War Shows Slight Soviet Gains Finnish Ski Scouts Cut off 10,000 From Army 900 "Comrades" Die in two Separate Encounters COPENHAGEN', Dec. SO ( Saturday )-;p)- Finnish kl scouts have rut off 10,000 Russian troops from ronuusa) cation with their base on the central Finland border near Salla, reports from Kemijarvl indicated early today The . reports indicated the Finns under General Kurt ,' Marttl AVallenius, commander of the central front army, were gathering a strong force to surround this group of invad ers effectively and force tbem into a decisive action northeast of Kemijarvj. By LYNN HEINZERLIXG HELSINKI, Dec. 29(JP)-FxitI-ous fighting among the Russian invaders with Red artillery and planes shelling and bombing their own men was reported in Fin land tonight as the vast but vague Russian offensive showed little ' progress at the, end of 30 days of undeclared war. Finns Announce 9O0 Killed In Two Battles The Finnish command : mean time announced that 900 Rus sians had been kiljed in two separate, unsuccessful thrusts on the Karelian Isthmus and that Finnish soldiers . had captured quantities of war materials. The . story of confusion and deadly mistakes in Russian ranks in the Salla sector of central Fin- - land was told by the Finnish newi agency, - ,;,.' - First, new Russian guns were brought into action in what waa meant to be another drive through the center of the little country. But the attack bogged down when soviet planes and the new cannon rained death on their own infan trymen. British reports also told or bloody and unexplained fighting between two Russian regiments in the Salla area. It was believed. however, that each regiment took the other for a Finnish unit. uiant iiun oucuicu by Finn Aircraft ( Recent reports from unison have told of a giant gun which regularly dropped shells on the Important port of Vitpuri. Thm was reported silenced last night, and the latest Finnish communi que today showed that a Russian attempt to capitalize on the long- range shelling had been beaten off after heavy fighting on tho lsta mus. "On the (Karelian) isthmus," the high commsnd's communique said, "the enemy again attacked on December 28 at the northern end of Lake Hatjalahden and east of Summa. Both attacks were re pulsed and altogether five enemy tanks were destroyed In addition to the two we captured. . "The enemy also resumed bis attack on Kelja but was beattn off." Russian Dead Left Lying on Battlefield The Finns said uv kubbums dead were left in a battle at Kelja, on the isthmus, between 8 p.m. December 26 and noon of Decem ber 27 and that 200 Jtnsslan cas ualties were left on the field after fighting on tho-Sysky lake sector December 27, -- sMnnlah soldiers seized rifles. automatic weapons and ammuni-' tlon in both actions. ."In the Kuhmo sector," tao communique said, "our troop captured a tank and an anti-tank gun destroyed a column of 46 pack horses. "North of Suomussalmt a bat tle around Lake Klanta continued all day. Our troops destroyed a enemy supply column and on armored car and captured thre tanks and two guns." Russian .-Air. Force , Lashes ont Again - f -The red air force again lashed out-acrosa southwestern Finiaao, tiona and sea coast towns during the brief daylight hours, bur tt still was not clear tonight wheth er . there had beenvany serious damage. In tho icy gloom of the Petsa- mo area., iu aivuv muuu, vw ing new has been reported sinco tho Russians were observed try ing to ' entrench themselves an-r end a precipitate retreat. - ' - There were unconfirmed re ports that Joseph Stalin was mov ing ruthlessly to accelerate the creeping -pace of the Russian at tack. " ' Picked troops of Russian sharp shooters accustomed to fighting on skis were said to be en route to the front from S3 far away as Siberia. Other hard-bitten battal ions, experienced In dealing n guerrilla warfare now favored by thOvFinns in some sectors, were moving up from the Caucasus.' Regiments of cossack cavalry were being sent - to replace tfce frosted tank battalions.