WmXW BsjssaBS sjb '. Wherever .News Is " Whether it's in Berlin; or In Chicago, In Salem or In Labfeh Center. Statesman reader may always eoant on having the complete story. - 4 ' : Weather ? ' Fair, today and Wednes day; little change In tem Teratnre; cloudy on the roast. Max. temp. Monday 84, min. 68. Rive? -4 ft. Northwest wind. CUNDQO 1651 f- NINETIETH YEAR Sclera, Oregon. Tuesday Morning. July 23, 1943 Price 3o Hewsalanda 5c No. ICO IB W ; :Ffpe Pfotq) f CDF. 1 T hi MiMipliFe - . - ' . , . ' t Churchill May e mite Lord Halifax Statement - Also Studied; Asks -. Prayers of US - Sea 'Action Is . Reported ; Troops Concentrated in North Ireland ; (By The Asosciated Press) .The. world halted expectantly today for Britain's final and re sounding "nol" to Adolf Hitler's offer of German-dictated peace. : That answer generally was ex pected to be giTen this1 afternoon in the house of commons by Prime Minister Winston Churchill, al though, he has scheduled no for mal speech. On Britain's reply, authorized German sources said, depends the "zero moment" of Germany's long-threatened blitzkrieg. , The Germans already knew , what the answer would be, for Britain's Foreign Secretary Lord Halifax told the world in a radio address last night that Britain would keep on fighting "till free dom for ourselves and others is secure." .Royal Air Force Emphasizes Reply And the German press acknowl edged that the royal air force al ready had given the reply in war ring fashion' a vast Increase of British raids on Germany since Hitler's reichstag address of last Friday. The nazi air force meanwhile maintained its constant harass ment of Britain in thundering raids this morning on England, Scotland and Wales with heavy Incendiary and high-explosive bombs. .! Formal comment' in Berlin was reserved hot the' informal opinion in German politicals circles was that the British minister's address "changed nothing." German offi cialdom, however; waited to see what Churchill might say. The German press reported that British air raids on Germany have Increased greatly since Hitler's of fer was made last Friday and showed in advance what Church ill's answer would be. Civilians were reported killed by British bombs in Bremen, Hamburg Wis mar and Schwerin. Prayers From US Asked by Halifax , The prayers of the United States for a British victory were asked by Lord Halifax, who said that across Che "wide Atlantic there are mighty '-nations who view his (Hitler's) works with growing detestation." - "The people of the United States did not build their hew home in order to surrender it to this fa natic," Halifax' said.. "We may (Turn to Page J, Col. 1) Soil Program Aid Reductions Voted WASHINGTON, July SJMffV Rates established for cooperation in the 1940 agricultural conser vation program were cut 10 per cent today. Announcing this action, the agricultural adjustment adminis tration said it was necessitated by a decrease in anticipated funds and a larger participation in the program. , The amount available for the program, officials explained, was reduced by congress order that final payments' under the 1939 program be made from the $500, 00,000 appropriated for 1940. " The conservation payments go to farmers limiting their-acreage of soil-depleting cropa . in ac cordance with the national goals established by the AAA. They are distinct from the farm parity payments which are not affected by today's' decision. The 10 per cent reduction Is the maximum that the .AAA can make. When enacting- the soil conservation act, congress author ised the AAA to raise or lower the announced annual rates by as much as 10 per cent to adjust thehm to available funds. M. L Annenberg On Way to Prison CHICAGO, July 22.-P)-M. X Annenberg, who has agreed to pay the US treasury $1,000,000 in settlement of civil tax claims, was on his way to prison tonight to pay a three year penalty for vio lating the federal tax laws. " The gaunt : Philadelphia r pub lisher, portrayed by his eounsel as a man who was "broken in health and "shackled" with debt, surrendered shortly before noon in the office of an attorney. - Annenberg pleaded : guilty to evading $1,217,298 in taxes on his 1936 earnings. That consti tuted one count of a six count Indictment alleging failure to pay 25,S4S,3S4 ' In levies, penalties and interest In his 1932-36 in come. The prosecution has agreed to dismiss all -remaining- charges against him. . WT "." W"V .. 4 V oice Del H1ZZONER AND-CENTENNIAL BOSS IN GAOL - . i t I A whiskered brand of justice caught up with Balem's mayor, W. W. Chad wick, and Centennial Man ager Irl S. McSherry jesterd a y i an d they became the first "calprita" to be Imprisoned in the Whis kerinos' truck mounted stockade. Perpetrators of this particular deed were Claude Stevenson, left, Harold Busick and George Stackman, chief longbeard of the Whiskerinos. Statesman staff photo. Whiskerino Stockade Tenanted; Ducking Trough Awaits Victims Eii One Ear . . Paul .Ilau8r9 Column The city editor in his gruff way told me to go out and get a story about the Whiskerino .Stockade. ti e a a n i enow- wai MWi r' , ;! was 010? to me, He told 'me to 1 go out and get the story and If s got It. I couldn't U miss. 1 ' I was the : story." Anyway I was part of it. Mavor Chad- w 1 c k was the I first prisoner I Si ry Cent ennlal rl H. hmmx. lr. general manager, the second pris oner to- ride In the Whiskerinos' jolting jail. It was right after Tommy Hoxie, the Centennial press agent, told me that that I became the third prisoner. I was tricked. "Take a look around, Hoxie said Innocently. SuretM said even more in nocently. That was when I made my first misstep. The door slammed and there was Hoxie leering at me from the other side of the bars. Never trust a press agent, especi ally' around bars. "Tou can't do this to me," I said. I didn't say it with much conviction. I stood there eyeto that I little patch of blue that prisen i ers caU the sky. It was a. pretty I sky and beside helped me, keep ! from looking at the people gathering around. They were f (Turn to Page tt CoL 6) . Work on Cannery j ; S tarts in Albany I ALBANY. July 22 Construc tion work got under way today on the cannery building which will replace the one destroyed by fire on July X, Plans for - the new building call for a larger struc ture than the former one. , Work is expected to be com pleted In time to allow for can ning of tomatoes and other fall crops. When completed and can ning is started, a large number of men and women will be afforded employment. - County's' Financial Status $77,000 Belter, Reported Marion" county's financial con dition was $7 7,0 00. better at the end of the f lscal period en June 30 than for th corresponding si months of 1939,. the semi-annual report issued yesterday by Coun ty Treasurer Lawrence A. Rich shows. v f " --. - I The report points out that the county h a d a' fund balance of 3459,193.26 at the end of Jim In 1940, as compared with a $375. 676 balance in the tame Account last: year. - y ' '":vir!tt JMnch of this is due, it states, to a $113,224.03 surplus In the tax advance fund at the end of last month, where at the same time year ago the fund stood ia balance. ' t'5 -1 w " On the other hand, $37,011 njore la outstanding warrants showed on the 1940 "books than on the 1939 account, ' and -the county a year ego had. a balance cf $81,062.12 for cUtribuUoa to iiihiiihi ii i nun i min if i- in 1 1 ii m i. i m iii.ii iiiiiin iimiimi rmrmmirnKMni in mi (r-iWnii'im'Tl i-r Hi it "i . -. . . . .. .. t Mayor and Centennial Manager Are First to Look out From Inside Though Charges Are Vague ; Barbed Wire to Make It More Secure The Whiskerinos swept down like the wolf on the fold Yesterday and put in force for the first time their threats that citizens not obeying their rather intangible rules will have to spend sometime in durance vile. . . ' r; i 1 -The partfculaFlirahd of -durance yUe .-being dished out by the Whiskerinos Is a high stockade of two by fours on a truck. The Whiskerinos zouna it a suitable jail yesterday, but de cided a little barbed wire around the top might help it. Mayor W. W. Chadwick and Irl S. McSherry, general manager and director of tho Centennial, were the first to be captured and thrown into the hoosegow on wheels. There were no charges except that Chadwick was mayor and McSherry Centennial manager. Leading the Whiskerino attack were Chief Longbeard George Stackman, Claude-Stevenson and Tommy Hoxie, Centennial publici- ty brewer. The Whiskerinos later rounded up other citizens whose infrac tions against Whiskerino law ranged from having too many whiskers to having too few. The ducking trough the Whis kerinos are keeping for severe cases was not put to use yester day. T Jack Garner Still i Silent on Future WASHINGTON, July ll.-VPi-Vice-Presldent Garner, still pub licly silent on the nomination of President Roosevelt for a third term, boarded a train for Texas here tonight and refused to say when, it ever, he was coming hack. . s At the train to say goodbye to him and Mrs. Garner were Senator Connally (D-Tex) , Rep resentative Rayburn (D-Tex), and a group of other Texans. - - Rayburn, long-time friend ; of the Garners and a political ally of the vice-president had tears in his; .eyes. '-'- & -: . ; fc--; -f . Senators Norris (Ind-Nebr) and Glass (D-Va) had stopped by Gar ner's office earlier ; to wish the vice-president well, r From the , start of ; the demo cratic ' convention which renomi nated : the president : and selected Henry A. Wallace, a former re publican, for his running mate. Garner remained In seclusion. the political subdivisions as com pared with $26,454 this year. v The treasurer pointed out that the'' old-age pension fund, which started the fiscal period with a deficit of $14,994.12, : ended ' it with a balance In excess of $15. 000. - The tax advance suspense fund also shows $7000 to be credited-to the old ag pension fund, bringing its fiscal total to $2 2, 000. he reported. TbM county gained also n Interest- received 'from investments, the report states. In 1839 $1714. 08 waa received from this source, as compared with $19 7 8.1 6 ..this year. On June SO the jcounty had $132,668.92. Invested a 9 follows; School ; district s No. 14, Marion county,' bond.v $74,000;-;Eehool district No.r 24, Marlon . "county, bonds,! $35,000; - State Hank - of Gervails, $15,OC0f MU1 City State bank. $9000; and ia school and . (Turn to Pag 9 3, CoL 1J, 1C : " 1 X x ? Employers' Forum To Be Here Today V. Vernon to Preside; Association Sponsors Parley Series Albany, Lebanon and Mc Minnville members of the1, Asso ciated Employers of Oregon wUl be represented by delegations in attendance at the employers' con ference which will be held this af ternoon at the chamber of com merce. The Salem meeting is the sec ond of a series of five parleys held under the sponsorship of the As sociated -Employers of Oregon to discuss proposed changes in the state unemployment act. The first of the meetings was held at Portland yesterday and subsequent ones are scheduled for Eugene - Wednesday; Marshf ield Thursday and for Medford.on Fri day. E. V. Vernon, Salem, will pre side at the meeting here 1 at 2 o'clock this afternoon. ' , The complete program follows: Call to order, chairman, E. V. Vernon, state director. Associated Employers of Oregon. . '. I "Purpose of Conference, Dan Hay, Salem, executive manager of Associated Employers of Oregon. ! "An J Analysis M of organised Labor's Proposed Changes in tne Compensation Act C. T. Haas, Portland. s . -r - i '-. - ' ' ' T !Duties and : Function of the Unemployment Compensa tlon Commission," Silas Galser. Salem, administrator of commissiQn. " : "Operation, of the Commission Under, the 'Merit Rating . Sys tem. " Virgil L. Sexton, Salem, commission supervisor of research and statistics. , .. : i VThe Federal Viewpoint of So cial LegislaUon,",, Fred W, Pack wood, Portland. . ' -Open forum hour, conducted by Vernon. - Leaders in "Dief ; Strike Identified I SAN FRANCISCO, July 22-ff -Officials of -Alcatms prison said today that ringleaders In an odd, week-long diet strike.' Involving scores of prisoners had been iden tified and. were being segregated to break up the demonstration. - .Warden "James A.' Johnston de clined to identify ; the leaders ' or say? what they hoped to', accomp lish by the protest In 1 which, they have' refused to. eat more than enough' food for subsistence. . : i At ; dinner" today the .-prisoners were served a meal which would have cost 60" cents in? the average restaurant;-The dissenters nibbled at one or two foods,, rejected the rest, ; and then went -quietly .to their cells, officials said. . . -The warden : expressed . belief yesterday that frustration- and. a desire of the convicts - for - more privileges explained their conduct. Heat Suffering Severe and No Letup in Sight 29 Deaths Directly Due to Temperature, i29 Persons Drowned. , I . - " ' - :.. " V: "' ' - ; in Many Parts, East,r f. Midwest, South r (By, The Associated Press) ' : Millions of "Americans w e r e harassed by. Intense heat Monday and harried by advice that no general break in the sultry spell was in prospect, r . Temperatures scaled - up Into the nineties in the midwest; east and south. .., -: The cumulative count of deaths attributed directly to the swelter ing siege now nearly a week old in some sections rose to 29 while 129 drownings were re ported. Nebraska thermometers held around the 100 degree mark for the sixth successive day. Scattered weekend rains brought limited relief to some sections. Detroit residents watched the mercury ascend to 95, an all-time record for the date. Readings ranged up to 98 in Virginia. Some of the high marks were 112 In Phoenix, Arts., 110 In Yuma, Arix., 105 in Rapid City, SO., 103 in Minneapolis. 107 in Huron, SD., and Kansas City, 101 in Charles City, Iowa-, 100 in North Platte, Neb., and Washing ton, DC., 99 in Omaha and 98 In Des Moines, Cleveland, Sioux City Iowa, and Cody, Wyo. A few showers In Pennsylvania failed to cool the state. Philadel phia had, 90 degree warmth' be fore noon. Similar conditions In Washington prompted officials to allow employes, in federal depart ments without air-conditioning to go-home fa Xh afternooTii " v:" Hot. weather in the south was common, too. Forecasters reported no widespread- relief was in sight al though rains might afford breath ing spells for some regions. Heat deaths included Ohio 2, South Dakota 2, New York 2, Wis consin 3, Pennsylvania. 12, Minne sota 1, Nebraska l, New Jersey 1, Kansas 1, Michigan 2, Iowa 2. . Drownings included Arizona 1, Missouri 2, Massachusetts 1, Illi nois 6, Ohio 14, South Dakota 2, New York 7, Wisconsin 4, Michi gan 14, Pennsylvania 14, Minne sota 4, New Jersey 7, Indiana 15, Maryland 8, California 7, Iowa 2, Connecticut 1, Georgia 1, Tennes see 1, Alabama 2, Florida t, North Dakota 2, Virginia 2. Spanish War Vets Eye Defense Need Fifth Columns' Also Given - Attention at Newport as Session Opens NEWPORT, Ore., July 12.-P). -Jack ' Witherspoon of Seattle told the opening of the United Spanish War Veteran 32nd an nual Oregon encampment today that "there never was a time in the history of our country when we have needed adequate defense as- we need it now. : The past national commander in chief advocated immediate reg ular service r for the national guard and compulsory military training. He condemned subver sive elements and said we should "seek out the fifth columnists.' ,- "Let us take inventory of the termites and find out where we stand," declared Ira D. Canfield of Medford, state commander jot (Turn to Page 2, CoL 6) Al Smith Leading Tliird Terra Foes NEW, YORK. July 22-iTfr-The New York1 Herald Tribune says that former Governor Alfred "E. Smith and other prominent demo crats soon will announce " their opposition . to - a third term for President Roosevelt and will sup port - republican , presidential nominee Wendell I Willkie. -, Smith conferred today , with Jouett Ehouss of Kentucky, who waa assistant secretary -;.et - the treasury under President Wilson, and John J. - Kaskob,. Smith's campaign manager in ' the 11928 presidential campaign, the Trib une Bald. '-;5 ..yv . The major topic of the con ference, it added, was how to capitalize the anti-third term sen timent most effectively in behlf of Mr. Willkie." Construction Bids Are . Ashed for Substation i PORTLAND, July 22.H5-The Bonnevllla power adminiatration invited . bids today - on the con struction cf a reinforced concrete building at its Salem . substation. Elds' will be epeaei August Cuban President Welcomes Hull As I liter-America&Parley Opens v ; ) Aft ' . l 2 1 i - Secretary of State Cordell Hall, at right, m he was presented to Pres ident Frederico Laredo Bra, center, of Cuba at a reception Monday In the presidential palace in Havana In honor of delegates to the Inter-American conference AP Telemat. 1 Diplomatic To Be Method of New Government of Japan Expansion and Close Cooperation With Axis Will Be Policies, Made Plain; Commercial Plan of Germany and Italy Accorded Praise TOKYO, July 23 (Tuesday) (AP) Japan's expansion minded one-party government laid out today a course of "diplomatic blitzkrieg' in which Japan will act without warning to achieve her ends by surprise. Statements to the press by members of the cabinet seated only last night indicated clearly that expansion and closer cooperation with the axis ' powers are Japan's sure course. Foreign Minister Yosuke Mat suoka promised that the govern ment would take advantage of the "diplomatic blltskrieg" tactics by which - the government -would sweep toward Its objectives with out preliminary exchanges, dis cussions and delays. . , "Hitler's diplomatic strokes. he said, "have been models of shrewd . calculation. . Ichixo Kobayashi, minister of commerce, said Japan must un hitch Itself from the economic or bit of the United States and Brit ain. . - - "A high degree of state effi ciency must be achieved through hitching- ourselves to the Italo German axis," . Kobayashi said, (Turn to Page 3, CoL 7) Three-Alarm Fire ge Is ' PORTLAND, July 22.-(y-A three-alarm fire Inflicted an esti mated $30,000 - damage to a downtown Portland clothing store late today. Fire Investigator Wil liam Goers reported. , Fire Department Captain Er nest R. Grenf ell's right hand was severely cut by falling glass. Goers said the fire, to which 30 pieces of fire fighting equip ment were summoned, started around rubbish cans on a base ment staircase. Heavy Salem Gives Warm Welcome To Touring 'Mississippians One hundred ninety-four mem bers ' of 1 the 'Know Mississippi Better", entourage learned, it is safe to say, a great . deal , more about Salem and Oregon than lo cal people did about Mississippi during the three hours that the touring party was in -Salem; on Monday night. : - - . ' - The visitors, headed by , Lieu tenant Governor-Dennis Mur phree, were greeted at the South ern Pacifle station by several hun dred Whiskerinos, Cherrians, pub lic officials, members of the Jun ior and senior chambers of com merce and' Just "plain citiiens. Some of . the visitors were taken on tours cf the city including the capital; a group of 60 .visited the capitol and then was entertained at a dinner at the Qaello spon sored by the Junior chamber of commerce. . .... .:.': : i .-v The Hisslssipplans -knew be fore the train had stopped that snmethins-nnnsual was eoinz on in Salem, for they were greeted by a ruslliaae or snots tau Dianxi from wild-west-appareled Whlar kerlnos. , . -Arpreciation for .the hcsjital- ?1 (7 Blitzkrieg - Resolution Solves Water Fund Issue Superintendent McOeary Is Placed in Charge; Bank. Is Notified SILVERTON, July 22 Be cause Silrerton's water commis sion, would not peacefully -turn over the water department funds to the city as provided " by the new charter adopted . in May. C B. Anderson, Councilman, recom mended at a special meeting Monday night that resolutions taking care - of the - issue be passed. ' ; Mr. 'Anderson; A. L. Coote and Reber Allen were ap pointed some time ago as a com mittee to work with" the water commission in' hopes of a peace ful settlement:' 1 Mr. Anderson reported Monday night that he regretted that this seemingly 'could not be done as the commission,, composed Of Dr. A. W. Simmons,' Roy Morley and A. R. astman, insisted the elec tion was, illegal and . refused to turn over the funds. - '.' ' i f The ' first" resolution directed and empowered Elgin McCleary, water ' superintendent, to . take over the water and sewer systems and all equipment ''connected - . (Turn to Page 3, CoL. 5)'v ity shown in Salem was expressed at the dinner by Lieutenant Gov ernor Murphree, r by -. Si Corley, Mississippi commissioner of agri culture, and by WF.-Bond. Mis sissippi state commissioner . of public welfare. Remarking that (he hospitality 7 encountered , on this year's Journey was the warm est experienced in - the", 15 years that the - tours have been made, Mr. Bond said"-he believed this was due to Americans' 'drawing together because of a potential external ' danger. ' I The . lieutenant - governor said one purpose of the trip was- a better appreciation -of-America, but added that while the pioneers who settled Oregon "and-the Mis-: sisslppians who fought for their convictions . la the Civil war did not lack this appreciation, some present-day citizens were perhaps benefitted . by b e 1 a g ''shaken awake" by the current world cri sis. - ' . j Governor Charles A. Eprague in greeting the visitort, spoke appre ciatively of the service to Oregon cf a former Mlsslssippian, George (Turn to Page 3, CoL 2), Financing Plan Linked up 7itli Havana Parley United, - States Policy Is Outlined hy Hull at ' ; . Opening Session , ... . -1 -. . . - r- - -. - Cooperation Is - Pledged : by. Spokesmen Some v " of Latin Nations ".WASHINGTON, : July ... 2.2-pU President Roosevelt - asked cor gress today to provide a 3500, 000,000 prop "for the fall, war- distressed foreign trade Kf all 'the American nations. 7 He " requested that the capi tal and lending power of the export-import bank be increased by that amount so that it might "be of greater 1 assistance to our neighbors south ; of the Rio Grande. Including1 financing the handling and orderly.; marketing . of some part of their surpluses." His message said' that it was in the Interests of United States producers of wheats cotton, bee?, metals and other export products, as well as producers In other American republics, "that there shall not be a disorganized or cutthroat market in those com modities whicn we all "-export." The president's message was sent to congress coincidentally with the second session of the Havana conference of foreiga ministers of the 21 American re publics. ' By" J. C. STARK HAVANA, July 22 The United States offered Latin America its leadership and dollars today in a bold fight against the totalitarian system of self-sufficient economy, and called for Joint trusteeship over any European colonies in the western hemisphere threatened with transfer to any other Euro pean powers. Secretary of State Cordell Hull, defining the program r of his country before the second confer ence of American foreign min isters, put the plan on a cooper a- V tire basis but clearly Indicated the United States was readr to throw its full resources behind its exe cution. . . y In his speech, expected to as sume the status of a policy-guiding declaration for the confer ence, Hull sharply condemned "forces of ruthless conquest which shrink from no means of attaining their ends. Pointedly, he served notice that the United States would not countenance any effort to "modify the existing status" of European possession in the western world, "whatever by cession, by transfer, or by any impairment whatsoever cised." ' "Decisive remedial action" is imperative, the tall, gray secre tary declared, to combat subvr slve activities he termed "an at tempt, to - acquire domination f the American republics by foreign governments - in their own inter ests . " . - r : .' He endorsed a protectorate by all the Americas over any threat ened European holdings on this (Turn to Page 3, Col. 3) Profits Taxation Joint Study Made i "WASHINGTON, . July Congressional and - treasury tax experts began today a joint tny of the .possibilities of. excess pro fits' taxation to help raise revenue for national defense and preTe&t war millionaires. Chairman Do"ightoa (D-NC) f the house ways and means com mittee said the conferees "Just sat down to talk -things over" with out " discussing specifically hew the bill would be drafted. He added. however, that as far. as .he j was concerned the excess levies . would be applied only t corporation Incomes and that in dividual incomes l would not be touched. "He added that within a week or ten days "a good start would have been made on -drafting a bill. " In a brief message to congreM July 1, " President Roosevelc recommended' "a . steeply gradu ated excess-profits tax, to be ap plied to all Individuals and all corporate organizations "without discrimination. WU Trustees toS G)nsider Vacanov r Chairman Paul B. Wallace has Issued a call for the Willamette university board f trustees to meet in Salem on August 5 to set in motion, search for a new president to succeed Dr. Bruce A. Baxter, who last week became bishop of the Portland area of the Methodist thr.rcb. : "I presrsse a cocimittee w-U L arpointei to tindls tti r.M ..- Wallace said yesterday. .Bishop Baxter Is exr: I remain at least nor:-.-'.:y -president cf . the university t:.; early falL, . .