Ho Substitute! You'll find no newspaper can give more real satisfac tion than your LOCAL HORXING PAPER, with Its WORLD NEWS plux HOME COM3IUNITY NEWS. Weather Cloudy with rain ' today d Monday. No change In temperature. Mux. temp. Saturday 4, min. 80. lllver S1. North wind. EIGHTY-NINTH YEAR Salem, Oregon, Sunday Horning, January 7, 1940 Price 3c; Newsstands 6c No. 246 lo Pefe Take Tol 1MB use ; j. P8UNOQO 1651 Flam tiintemiec fe See Ear.. Paul Hauser Column Whenever anybody mentions the dangers of Inflation, as Sen ator Taft did Friday in his bud get b a l a n cing speech. Dr. Bruce Baxter shivers a couple of times and palls from his tiles an en- . t.t he received a let- I ter from Ger many in Janu ary. 1924. The letter, mailed Inst about a week before Oer- pat a enuo h many ended its inflationary per iod by solas on the goldmark, bore stamps for four billion marks. At the old pre-war rate of exchange that would have been about a billion dollars to send a letter from Berlin to the USA. Dr. Baxter's introduction to in flation came when he was In Ger man alonff about 1023. lie had just arrived In the country and on the train had no occasion to ipnw ArriYinz in Berlin early In the morning of a bitterly cold day he hired a taxi 10 him to a small uotei. When the taxi reached the des tination Dr. Baxter asked the fare and the cab driver responded with a figure that was in the hundreds of thousands of marks. Unfamiliar with the rate of ex change and afraid he was being taken for an American sucker. Dr. Baxter hauled out the assistant manager of the hotel, who spoke somo English. That worthy came to the entrance of the hotel in nightshirt, shivering as a bitter wind whipped about his legs. Dr. Baxter explained the diffi culty and that be feared he was being robbed. 1 "That's your fare," said the ho- tel manager, his teeth clattering. "Do you know bow much tbat is ita your money?" Dr. Baxter confeesed that he aldn't "It's about two and a h a 1 f eents. The Pacific Coast conference, taring decided that it is a bad b6y. is nowv faced with the dilem ma of finding a corner to stand in in a round-robin. Willamette university, which eems to have a corner on this column today, took over the rec ords of Gooding college when that sister Methodist school gave up the ghost. Recently a former Gooding student requested that his credits b forwarded to-the University of Nebraska. Walt Er lekson, the WU registrar, looked over the requested credits and found them in order, including a credit for a course in Sanalogy. Walt didn't know what Sanalogy was, but forwarded the credits anyway. Pretty soon back came a letter from the University of Nebraska skins. In effect, "What in the devil la Sanalogy?" Walt called a huddle of some of the learned around Willamette and after much mulling they final ly decided that the course might have something to do with hy giene and Its name derived from the Latin word sano, meaning "heal." If anybody has any better idea, Willamette would be glad to hear of it and so would the University of Nebraska. - The national budget this year la divided into two parts, ordin ary and defense. It seems the only way to balance it is to put the deficit on one side and three or four 80,000 ton battleships on the other. Portland Woman Gets Big Legacy PORTLAND, Jan. 6.-A)-The bulk of an estate estimated be tween 1500.000 and $1,000,000 was left- today to Mrs. Inez M. Eckerson, Portland. It was left by Louise M. John son, widow of Samuel W. John son, Carbon county, Wyo., ranch er. Mrs. Johnson had lived with Mrs. Eckerson, her sister, until her death December 18. Rufus M. Eckerson, Corvallis, a nephew, was named executor of the ranch property and oil land estate, all in Wyoming. A $50,000 bequest was mad to him for the purchase of an an nuity for Ruth Strauss Lei dig, Carmel, Calif., a grandniece. . Relatives and friends in In diana will receive other bequests, ranging from $5000 to $250. 8 Liquor Officers Set to Lose Jobs PORTLAND. Jan. --Maay source said today "probably eight! enforcement officers of the state liquor commission will be dismissed in a reorganization move. - Commission authorities said they were undecided on the num ber. It was understood that one or two agents under question had made satisfactory showings at a three-day commission school and would be retained. s f i. 3- i Harrison, FDR Ponder Budget Study Measure f President Is Mildi, in Favor of Two House Group Little Business Is on Congressional Slate for Next Week WASHINGTON, Jan. Senator Harrison (D-Miss) talked over with President Roosevelt today his plan for congress to write its own budget, and re ported that the chief executive felt It was a step in the right direction. Doubt that the idea might be carried through was raised, how ever, by a statement from Sena tor Byrnes (D-SC), who was a luncheon guest of the president, that house leaders were "about right" In contending that the house should go ahead with con sideration of those supply mea sures already prepared. Harrison's proposal is that the house and senate create a 24- man committee to study Mr. Roosevelt's budget for CO days and then make Its own recom mendations, i Usual Procedure Favored by Byrnes The committee would he com posed of members of the house and senate appropriations and revenue committees. Byrnes, an Influential member of the senate appropriations com mittee, made it clear that he thought it would be best at this time to go along with the usual congressional procedure. "Desirable as It might be to Bake a study," he said, "now that the house is ready to consider bills, nothing would be gained by holding them up for 60 days." The South Carolinian said a Joint study "might-well Te pa- sidfered for the future,' but added such an inquiry should begin in the summer preceding a congress session. Question Believed Entirely for Congress Byrnes' statement, coming af ter Harrison's, and after both had seen the president separately, led to the impression that Mr. Roose velt's attitude was that it was a question entirely for congress. Harrison, chairman of the sen ate finance committee. Indicated that he felt, assured, at least, of no administration opposition to his idea. "The administration will not be shooting at this plan," he told re porters. "The president is very much in sympathy with the idea of a Joint committee to study appro priations and taxes. "He naturally wants any ma chinery which might create har mony between the spending and taxing committees. That way, we can know the signals and not miss the plays." "Then the quarterback ap proves?" a reporter asked. Touchdown" Would Bring Mlssisslppian Happiness "That's not a Dad line." the Mississippi senator countered. "we see a balanced budget as the goal ahead, and if we can make a touchdown we'll be awful happy." Also bearing on the fiscal situa tion was an expression of opposi- t'on from Senator George (D-Ga), a member of the finance commit tee, to Mr. Roosevelt's recommen dation for a special tax to raise $469,000,000 of additional reve nue for emergency defense pur poses. "If congress should undertake to raise additional taxes," George told reporters, "then it would be imperative to revise the entire tax structure. "Necessarily, we would have to consider exemptions and possible broadening of the tax base as well as the rates themselves." George expressed the view that congress should delay enactment of new taxes until the present bus iness upswing could be accurately Judged. Little actual business is on con (Turn to Page 2, CoL I.) Parking Causes Most Grief For City Police Department The Salem police department performed 25,192 specific activi ties during! It St, a report com pleted yesterday shows, with dis tribution of parking tags leading the field. The department put out oyer 11,009 parking violation tags dur ing the rear and took in $8314.45 as hail from parking tickets. For feited bail on all other offenses was $3427.7 for a grand total Of $11,722.20. Traffic control activities also Included the following: Arrests Violation o f basic rule. 500; reckless driving, 26; improper lights, 81; defective brakes, 11; failure to stop at stop signs, 17 1; Improper licenses, 88; unclassified arrests, C7S. - Warnings Lights, 3878; oth ers, 1485. Werner Reelected U-g?.i President v. Ernest Werner, Silverton, was re elected president of the Marion County Farmers union at the quarterly meeting of the organ' iaation at Gervals today. Other officers of the group also were reelected. Story of the conven tiou is on page 8. Woman Is First Traffic Fatality Mrs Oara H. Knowles Dies After Collision With Locomotive Salem marked up its first traf tic fatality for 140 last night when Mrs. Clara Haydn Knowles, 43, died a few minutes after an automobile in which she was rid ing was struck by a Southern Pa cific switch engine at Trade and Winter streets. The driver, Georgette Washing ton Ames, 18, of route three, escaped with minor cuts, for which she received treatment from the .city first aid crew be fore being taken to the Deacon ess hospital. Mrs. Knowles was pronounced dead at the Deaconess, where she was taken by John Baker of Tnr ner, a passerby. Miss Ames said she did not see the engine until her car was with in 10 feet of it, police reported The car was struck broadside, shoved 87 feet along the track and Mrs. Knowles pinned to the opposite side. Her Injuries were reported to include a broken neck A. H. Denison, the engineer, said his locomotive was not mov ing rapidly and Miss Ames evi dently didn't see It. The Impact demolished the front of the automobile and broke (Turn to Page 2, Column 2) Charters Chosen YM Work Leader Successor to Gus Moore Engineering Student at Oregon State AnDOintment of dlvAn P rir ters, leader In Oregon church v o u t h organizations, an nova work secretary for the Salem imua was announced yesterday Dy the T personnel committee neaaea nv jjr. Krnra r Hnrtor He Will succeed Marion "firm Moore, who will leave January 20 to taxe a position in California. Charters, who will ftnlh In dies for a degree in electrical en gineering at Oregon State college in March. Will ajiRuma hi. now nw sition at once. A former resident of Portland, he is president of the Oregon Christian Youth council. served xor live seasons on the staff of the Portland First Presby terian church - summer camp at HuiocKDurn, has been associated With BOV Scout leadershin activ ities for 11- years, served two years ago as leader at the Silver Falls recreation area, nimmtr camp and last summer attended in worm christian youth con ference at Amsterdam, Holland. At Oreron State caller a r bar ters was yell leader for two years and active In Westminster hnnu affairs. The department recovered 18 stolen automobiles and made 78 traffic investigations. There were 343 arrests for drunkenness, 27 for disorderly conduct, 13 for drunk driving, nine for larceny from automblles; six for automobile theft, four for sex crimes, 185 for miscellaneous misdemeanors and 131 for un classified felonies. Forty-six stolen bicycles were recovered. The department's bi cycle licensing division showed receipts of $587.75 and a net gain to the city of $308. Other activities Included serv ing of" 11 felony warrants, 12 misdemeanor warrants, C34 traf fic -yarrants, 74 street assessment summonses and 380 places found unlocked and owners notified 4Y $4 Resignation of Fry Expected In Two Weeks Roy Mills Considered Likely Successor of Secretary Action Is Not Asked by Other Members Control Board By STEPHEN C. MERGLER Dan J. Fry, whose ouster as secretary of the state board of control has been reported in some newspapers as impending, is ex pected instead to resign voluntar ily within the next two or three weeks to accept another position. ordinarily well-informed sources said at the eapltol yesterday. Fry said late last week he was proceeding with his state duties "as usual." Democratic circles have men tioned the possibility that he might receive appointment as fed eral housing administrator for Oregon as successor to the late Jameson Parker. Mills Likely Successor To Secretary Post The same sources that predict ed Fry's resignation, also suggest ed tbat Roy Mills, of the state banking department's liquidation division, as most likely successor to Fry. He has been with the banking department since It 22. is a son-in-law of the late State Sen ator Charles K. Spaulding. That these reports are not based on action decided upon by the three members of the state board of control was indicated in the comment of Governor Charles Sprague that he had not dis cussed the position recently with the other two members, Secretary of State Earl Snell, republican, and State Treasurer Walter E. Pearson, democrat. Fry Appointee of Ex-Governor Martin Fry, a democrat, was given his present position early in the ad ministration ef former Governor Charles H. Martin. He is entering his second year as the board's sec retary under a republican admin istration without receiving the walking papers many Jobseek- ers have with self-interest wished for him. The secretaryship includes the duties of supervising state purch ases and carries a salary of $5400 a year. No developments have been in dicated as to the rumored change In the office of state insurance commissioner, now held by Hugh Earle, democrat, who came to Sa lem from Eugene nearly five years ago to accept another Mar tin appointment. FR Budget Puzzle Highway Board What do Washington reports on President Roosevelt's budget message mean as to the future of Oregon's highway construction program? That question is puz zling highway department offi cials and an answer is not yet in sight. The varying designations of years by calendar and fiscal per iods have either been garbled on their way to Salem or the presi dent has recommended no great change In road appropriations. The correct answer is still being awaited. Increase Expected By Baldock But for the fiscal year 1941, which begins for the federal gov ernment on July 1, 1940, Oregon does know that it has been prom ised nearly half a million dollars more than was allocated to its roads for the current year. R. H. Baldock, state highway engineer, announced yesterday that $2,595,000 bad been appor tioned to Oregon for the new year as against $2,170,141 for the year closing. The new allocation of federal funds is divided as fol lows: Federal aid $1,884,900; sec ondary highways $245,900; grade separations $335,000; public lands roads $129,200. New State Controls Come too Late David Eccles, state budget di rector, feels somewhat like the firemen who got to the fire after the fire was out; he has set up new controls over state depart ment's capital expenditures only to find that most of the capital outlays authorized for the 1939 40 blennium have been made. "We'll have a good hold on them next blennium anyway." Eccles said yesterday. "There was no cheek at all on capital outlays before," Fingerprint Leads Poli3e to Robber GRANTS Pass, Jan. -UP- Sheriff Don Barnes said today a single fingerprint on a strongbox rifled of $200 led to the arrest of Joe Kurpek, 22, New York. The money was taken from a safe at CCG Camp Rand, where ek was enrolled. , Barnes said Krupek. located at Camp Wlmer to which he had been transferred. admitted, the theft. Bullet-Riddled Nazi Plane Is Downed by French in Dog-Fight " i ' J! fv twee. : The French caption of this photograph describes it as the bullet-rid dled pilot's post in a German plane brought down by French avi ators in an aerial battle. Arrow points to spot where bullets smashed through fuselage, circles show bullet holes. Rumanians Stand Ready for Fight Balkan King's Warning to Russia, Germany Is Independence Plea BUCHAREST, Jan. I.-A!p)-Ktng Carol declared that all Ruman ians "are ready to die together to defend their borders' in bristling speech today interpret ed throughout the balkans as i warning to both Russia and Hun gary. He spoke only 12 miles from the Russian frontier at Chlsinau (Kishinev), capital of Bessarabia, the province that was Russian until 1918. Russia and Hungary have ben Insistent in demands for return of territories they lost to Rumania in the World War settlement. The occasion was a big review of land and air forces. The king reiterated his government's re fusai to consider any change In the national frontiers, by peace or war. After leaders of Bessarabia's Russian. Ukranian and German minorities publicly declared allegi ance to Rumania, the king de clared the province "will always remain Rumanian by the force of our arms." The speech also was interpreted as a reply to Hungarian efforts, encouraged by Italy, to regain Transylvania by negotiation. A declaration along similar lines was made by Premier George Tatarescue Jan. 1 at Constanta, Black sea port. He mentioned Bu covina, formerly Austrian, as well as Bessarabia. "The whole country Is united as one man," insisted General George Argesanu of the third army corps in a speech welcom ing Carol. "It will not be difficult to defend our fatherland from tne Dniester to the Tisza rivers." The reference to the Dniester river, which forms the Russian Rumanian frontier, underlined Carol's warning to the Soviets. The Tisza helps mark the bound ary with Hungary. Police Seek Ques In Slaying Case ABERDEEN. Wash.. Jan. I.- (P)-Mysterlous blood stains found on the sidewalk near her home and a reported fight between a man and two women shortly be fore her death, were listed by au thorities as Important clues today in the brutal slaying last bight of Mrs. Dick Law, 24-year-old blond mother and wife of a union offi cial. Acting Police Chief Robert Schmidt said a witness reported the fight on a downtown street shortly before 7 o'clock last night and one ef the women was de scribed as similar to size and ap pearance to Mrs. Law. Passersby reported to police they saw a pool of blood two blocks from the Law home and bloodstains on an automobile parked there early today. The automobile was gone when police arrived. Mrs. Law was found dead less than a month after her husband, a member of the executive board of the ClO-affiliated International Woodworkers a s s o c i atlon ap pealed to police to protect bis family. Law's appeal was made a short time after a riot in which a mob wrecked a workers hall a few blocks from where the 'Law's resided. 1 r Germans not All Of Opinion That Feuhrer Savior EUGENE, Jan. 6.-p)-Proof that Hitler is not every Ger man's idol was contained in a letter received by m family from relatives in the Reich. The . letter itself, subject to the scan of nazi censors, told of their love for their Fuehrer and how Germany would some day be the queen of nations. It was suggested that their American relatives remove the stamp for their collection as it would probably be very valu able someday. After the stamp was care fully steamed off, the follow ing message could be read: "God punish Hitler. We are starving. CC to Introduce Officers for '40 Introduction of the 1940 offi cers, "klckoff ' remarks and the report of T. A. WIndishar, retir ing president, will constitute the program of the Salem chamber of commerce luncheon Monday noon, first general meeting of the new year. E. H. Bingenhelmer, the 1940 president, will preside for the first time. President Wlndlshar's report mentions receipts of $8278.73 in membership fees and dues in 1939, making possible payment of $1892 on the holdover indebted ness of $4711.8$ which had been due primarily to the remodeling program of the previous year. The 1940 officers will face a holdover debt of $2340.77. The report mentions the acqui sition of 138 new members dur ing the year, and compliments Berkley Newman, 1938 president, for the remodeling program and Fred D. Thlelsen, manager, for efficient leadership in the mem bership campaign. Representative Dies KEW YORK, Jan. -()-Rep. Edward W. Curley (D, NT) died tonight at his Bronx home following a heart attack. Mary Pickford Lady is Excellent Actress WASHINGTON. Jan. .-tffV- Mary racarora, "America s sweet heart" as a movie star, credited Mrs. franklin D. Roosevelt with being a better actress than she tonight at a White House mo bilization of American women for the "fight Infantile paralysis" drive. With movie cameras grinding. the first lady, smiling and poised in a long bronse lame gown, an nounced that the committee for celebration of the president's birthday was trying "to raise the ammunition" with which to fight infantile paralysis epidemics. "That means money," she ex plained. Then she introduced Miss Pick- ford, who looked very petite in a turban, dress, fur jacket, gloves and shoes all of a warm cocoa brown that contrasted with her yeUow curb) and blue eyes. "X speak as one of millions of women . in this country who are only too happy to 'stand with you. the actress began. But aha fumbled for words aa she tried te say "ia this work of mercy 22 Russian Planes i Claimed Shot Down By A rnty Defenders Another Efforj by Soviet to Sever Finnish "Waistline" Reported Repulsed; Mikkclli Harmed Eight Each in Last Two Days Held Tolf of Northern Airmen and Anti Aircraft Defenses By LYNN IIEINZERLING HELSINKI. Jan. e.(AP) Twenty-two Russian var- planes possibly more have days by Finland s stiffening air jdefenses, military circles as serted tonight. j An army communique officially accounted for eight so viet machines destroyed yesterday at Mikkelli railroad town about 135 miles northwest of the Karelian isthmus frontier. Unofficial but reliable sources reported that eight mora planes were shot down today at Utti, 90. miles south of Mik kelli on an east-west railway line. In addition, anti-aircraft batteries at Savio, northwest of Lake Ladoga, were reported to have destroyed six addl- Otlonal soviet planes. Action Shakes British Unity Demand for Chamberlain to Tell All" Made by Newspapers LONDON, Jan. 6 .--Dismissal of hard-driving Leslie Hore Bellsba as war secretary shook to tbe foundations today tbe national unity behind Neville Cham be r-lalu-'s wartime premiership. From all parties came demands that Chamberlain "tell all" about the departure from his war cabi net of one of his most vigorous and popular ministers and why be did not at tbe same time rid his government of some so-called "dead wood." The Star, voicing general press demands for a fuller explanation of Hore-Belisba's retirement, de clared: "There is no satisfactory rea son adduced for shifting a man who had tbe public confidence and was doing a fine job. "If it is shown that Mr. Hore Bellsha was thrown overboard to satisfy a clique of generals who disliked him on social grounds or because be was pressing the pace of democracy lu the army too strongly then public resentment will be wide, deep and lasting." In the cabinet shake-up, Oliver Stanley succeeded Hore-Bellsha and Stanley's portfolio as presl dent of tbe board of trade went to a newcomer. Sir Andrew Rae Duncan. The only other change found Lord MacMUlan replaced as minister of information by an other newcomer. Sir John Reith. The parliamentary recess spar ed the 70-year-old prime minister from immediate attacks in the house Of commons bnt be will have a chance to answer his cri tics in a mansion house speech Tuesday night when he will start a series of ministerial addresses to stir the war spirit of the peo ple. Should Chamberlain Ignore then the controversy, which surpassed the heat of those created by the peace-time resignations of An thony Eden as foreign secretary and Alfred Duff Cooper as first lord of the admiralty, he would wait until parliament! reconvenes Jan. 16. Demands for a full explanation of Hore-Bellsha's "resignation" were foreshadowed in parliament by both opposition party mem (Tarn to page 2, column 7i Says First and humanity." and the camera men had to shoot again. "See," laughed Miss Pickford. i turning to a group of 10 promi nent women from 17 states gath ered la the oval diplomatic room to plan this year's birthday drive "Olrs. .Roosevelt's a much bet ter actress than I am. In addition to women heads of many state and local birthday celebration committees, the white house audience Included capital leaders-Secretary of Labor Fran ces Perkins, Mrs. Cordell Hall, Mrs. Henry Wallace and Mrs. Charles Bvana Hoghes, wife of the chief- justice; Mrs. Stanley Reed, wife of an associate su preme court Justice; . and three congreaswomen. Representatives Marty T. Norton (D-NJ), Caro line O'Day (D-NT) and Edith Nourse Rogers (R-Maas). Mrs, Roosevelt said there were about 7,800 infantile paralysis eases reported last year, . abont four times as many as in HI I. The president's birthday Is on January SO. . been shot down in the last two The Russians managed to Inflict considerable damage at Ulkkellt before being driven off. Several civilians, including women and children, were reported killed. In fighting yesterday the high command reported destruction of two enemy tanks and capture of 11 others along with large quaa tlties of supplies left behind ty retreating red army forces la the center ef the eastern front. Kfforts to Hever 1 "Walatllne" Repulsed Brisk fighting continued on the eastern front at 8nomussalml where the Russians have b e s a beaten back in their efforts to sever Finland's wasp-like "waist line I The bulk of the tanks and booty captured was reported northeast of Suomussalml, in the region of Juntusranta, a short distance from the Russian frontier. ' The Finns said their coastal forts turned their guns inland to destroy red army supply columns and artillery. On tho Karelian Isthmus i the high command said two minor in fantry thrusts toward the Manner beim line were repulsed. The rtd army coupled these attacks with intensified artillery barrages P tweeh tbe Gulf of Finland and Muolaanjarvi. Attempted Biltxkrleg Is Unsuccessful Russia's attempt at a biltxkrleg, ' after a S 8-day trial against Fin land, a country of S.sOO.000 in habitants, has netted her about ,000 square miles, or about one . forty-eighth of the 240,000 square'' miles she apparently set out to capture. And Finnish leaders say they gave up voluntarily most of the Finnish territory now occupied by the red army. Reports of changed leadership of the soviet army on the Karelian Isthmus and its digging in opera tions there indicate a change of tactics now. Bat the distribution of soviet troops at tbs beginning of the war left llttle'doubt to ob servers that Stalin planned some thing similar to Adolf Hitler's jaunt into Poland. . The Finns Insist there is lit tle military significance to the continued soviet air raids which since tbe beginnings of the war have kUled about 100 civilians and caused material damage to about SO cities and towns. The Finns assert they have ahot down more than HO Russian planes. Klaus Still Hold KarelUa Defenses Today the Finns sUll hold de fense lines on tbs Karelian isth mus to which they ; withdrew in the early days of the war, al though the Russians, with seven, divisions massed there, apparent ly hoped to break through quickly by sheer weight. The western end of this Finn ish line is tbs coastal battery at Kolvosto south of V 11 purl on the Gulf of Finland, which, despite almost daUy shelling, has pound ed .away at both land and sea units of the Russian war machine. Many Finnish troops at Kol vosto already have been decorat ed for heroism in the face of great . odds. From Kolvosto the Finnish lines run east-northeast, south ef thw small Tillage of Sum ma. south of Maolae, then northeast past Lake Suvanto to Talpale on Lake Ladoga, where there has .been particularly hitter fighting along the . eastern end of tbe Talpale river. alaanerbetas line Declared latact The Finns offered only slight resistance while withdrawing t these . positions during the first twe weeks of the war. While Russians havs Bade some advances In the center tf the line, they always have been beaten back, and the - Manner- helm line is tntact- The . Russians made other ma jor land gains north, of Lake La doga where soviet troops fought bitterly la an attempt to mansu (Tam to Page I. CoL S)