," - TTeaiiier Rate today j, local showers mi : cooler Monday; heavy -wow . in . mountains. . -Early report 'nave wind Telocity as fuwty, S m.nJi. and as high . 70 rn.sv.lu River 8.4 feet. Clear and windy. .V "IV. Complete ; Watch your Oregon States bu. See bow It coven the new completely," present It Interestingly a e b day, with doe attention to local happening. ninetieth yeab Salem, Oroyon, Sunday Mortdng. December 22. 1940 Pricei 3a Nowntasds 5c No. 231 hwe&t OF7 TT I - n - I i Portland Finn Has Contracts, 2 Mine Layers 12 Million Dollars May - Be Cost of Each; to ' - Expand Shipyard Half Million per Month in Wages Prospect; ' r Frontage Leased PORTLAND. Dec. 21.-fc!p)-Con-tracts to build two mine layers for the nary, to cost 112,000,000 apiece, with an allocation of fl, 000,000 to expand facilities, was awarded today to the Willamette Iron ft Steel - corporation of Port land. , This announcement, the first official word that the local con cern win set the large nary or der, was 'made in Washington, DC, by Secretary of Navy Frank Knox, who awarded contracts to private shipyards for 31 addi tional mine layers, tenders and other, naval vessels estimated to cost f2C5.765.600. The-amount allocated for con structing each mine layer was not announced from Washington but it Is believed here on good authority that each ship will cost $12,000,000. Of this amount 60 per cent will be paid in wages to Portland laborers working di rectly on the mine layers or in shops constructing equipment for the ; Job, largest shipbuilding or der to be awarded Portland since World war day i. It Is estimated that a bout $500,000 In wages will be paid monthly to workmen and that between 1800 and 2200 men will be employed, working at least two and possibly three shifts daily. - ; An official of the -Willamette Iron k, Steel said that the com pany baa not yet been notified by the navy of the contract award. The mine- layers, he. said, will be built on, ways to be constructed on ' property adjoining the com pany's plant at 2860 NW Front avenue. This property is under lease to Willamette. It borders the river and extends northward to the Oceanic terminal. Addition of this 20-acre site will give the firm a total of 1745 feet of river frontage. Details on the mine layers were not made public but it Is be lieved here that each will be ap proximately 460 feet long, that the contract calls for completion within 22 to 36 months and that (Turn to page 2, col. 8) North California Sees Flood Peril Clearing Weather Outlook Lends Some Comfort; Rivers Are High SAN FRANCISCO, Dec. 1.-JP) -Drenching rains over all north ern California raised stream and river waters to dangerously high levels In some sections today, in terrupted train service, flooded highways and washed away much snow in the mountains. The forecast was for clearing and cooler weather tonight, bow ever, with rain reaching the southern: part of the state prob ably tomorrow. It rained as far south as Fresno today. Dunsmuir and Kennett, north of Redding, were about the wet test spots in the state today. At Kennett, 5.82 Inches of rain fell In the 24-hour period ending at 7 a. m and it was still falling this afternoon. (Turn to page 2, col. 4) Compressed Air And City Water Yield Charged9 PORTLAND, Ore.. Dee. 2 1- ( AP-West-side apartment dwellers agreed today that Portland cer tainly was the place to spend the holidays. They turned on their kitchen faucets and out came charged water. , Alarmed water department ln lnvestigators found a service sta tion attendant bad "mistakenly" connected a' compressed air tank to a eity water pipe. i ifcrawa mnwmd . SafelM. faraait e SfM caa salute StU soar eseiatf mJj Mayor Chadw OyBuysf'tAdmission To Monday's Janned Food Matinee Mor U. W. Ctiadwick sets an example for younger "kids" or any one else who wants to participate by paying for several admis sions to the Warner Brothers-Statesman canned food matinee, scheduled for Monday forenoon at the Elslnore theatre. Manager Carl Poster is "taking tickets." One ran of food, variety unlimited, will admit to the show and tlie food will go into the baskets being prepared by The Salvation Army in its Christmas Cheer program. Statesman photo. Food Matinee Monday; To A id Cheer Program Doors of Elsinore to Open at 10:30 a. m., films Start at 11; Salvation Army Winding up Preparations to Fill Many Baskets Arrangements for the Warner Brothers - Statesman "canned food matinee" to be .held Monday forenoon at the Elsinore theatrewefeCromnlgtfrd .Saturday as The Salvation Armytavhich is to utilize the loodstuffs obtained in connec tion with its Christmas Cheer baskets for needy familes, also rushed toward completon its plans for their distribution. -Paul Bauser'- Column We don't recall where we first met him, but we now wish that meeting bad never occurred. We were e e 1 1 i n g r; ilonr fine. mind-M f -X T. SA Ing out own busi aiti (after a fashion) and having a good time until he came Into- our life. We suppose it was unavoidable that we should meet. We had heard of him from many sources and, up VA to the time that rsal H. Hmmi, Jr. we came under his baneful influ ence, we had' been surprised that anyone could have such a wide ac quaintance and still be so thor oughly unpopular. It seemed that nearly every body knew him, but nobody lik ed him. It may have been that be was in search of a friend, for he overlooked no means to widen his circle of acquaintance. There was, however, a- certain power about him. It was only a few hours after we met him that he had us sold into the Kleenex league without' our consent. From that moment we hated his presence. His touch on our skin seemed clammy and cold and daring his entire visit our joints felt as if they had been recently taken apart and reas sembled by an apprentice pipe fitter. That, in brief, is the history of our acquaintance with Old Debbil Flu, who is standing by our bed side as we write this and closely inspecting the copy for libel. Wouldn't it be a tragic thins; If Santa Instead of coming down the flae this year came down with it. Waiving Lockout and Strike Right Advocated by Hoover NEW YORK, Dee. U-F)-Fqt-mer President Herbert Hoover declared tonight that employers and employes in essential war in dustries should waive-their re spective rights of lockout and strike "in favor ofarbltraUon." In a nationally broadcast speech (NBC bine) accepting the 1940 gold medal of the Pennsyl vania society of New York. Hoo ver decried "intolerance" in the United States and , said be . be lieved the best way to cope with defense and allied problems was "to definitely organise increase of bur industrial efficiency and pro ductivity.'! , -; The former president prefaced his discussion of defense and pre paredness with the remark that "now that I ; havev divorced my- - V. Indications were that the canned food matinee, to which admittance may be gained by pre senting one can of food, no mat ter what the variety, in lieu of a ticket, will be more extensively patronized than the one a year ago. Doors of the Elsinore will open at 10:30 a. m.. Manager Carl Porter has announced, and the show will start at 11 o'clock. From the short subjects to the Laurel and Hardy comedy fea ture, the show is designed to please young people and be in keeping with the Tuletlde spirit, but anyone is privileged to pat ronize it. Draft Law Upheld By Federal Judge BOISE, Idaho, Dec. il.-yp)-Congress has the power to "com pel military service of a citizen," whether in "peaee time or war time," Federal Judge C. C. Cava nah ruled today. In an opinion denying two brothers' motions to quash an in dictment charging failure to reg ister under the selective service act, Judge Cavanah said: - "Our national history and court decisions uniformly have recog nized the existence of the power of congress under the constitution to compel military service of a citizen in case of need, when it so declares, whether in peace time or war time, and to make preparation, if congress declares that it is imperative or neces sary, or that an emergency exists requiring the raising and support of an army." The brothers, Boyd B. Cornell, 24, and Clark Cornell, 20, of nearby Middleton, a farming commnnity, ' challenged constitu tionality of the conscription aet, contending congress lacked au thority to recruit civilians during peace time. self from politics, for the balance of my life, I can devote myself to such discussion without parti san impulses.". , "Among the parallel phenom ena with It 16-17,". he said, "is the ferocity of the discussion go ing on among our own people." ' Developing that theme. Hoover continued:- "Certainly it Is a sign of a dan gerously irresponsible mind In a nation when patriotic men are fiercely denounced as being the tools of Great Britain or pro nazL And by way of pointed illus tration, I refer to --two men single-minded men - in .their : de votion to our.eountry They, are William Allen White and. Col. Lindbergh- both of whom have f v (Tff am to page 7rcoIumn2) . - m , ? . v" . Germany Irked At US Policy; Warning Given British Request Shipping Be Turned Over Draws Spirited Rejoinder Removal of Three From Diplomatic Corps at Paris Requested By LOUIS P. LOCHNER BERLIN, Dec. 21-(;P)-An offi cial spokesman of the German for eign office charged today that Britain's minister of shipping was "inciting America to commit a warlike act" against the axis and, in carefully chosen words, added that the United States' re action "is being awaited by Ger many with extraordinary inter est." The occasion for this solemn and emotional statement was a press conference weighted with gravity;, the reason, an interview given the American press in Lon don yesterday by Ronald Cross, the British shipping minister, who suggested assignment to the British of the German and Italian ships which are tied up in neutral United States harbors. The German spokesman, in an aside, added: "The reichsgovern ment is therefore centering its en tire attention upon this (United States) reaction." Rome Is Confident It Won't Happen (Informed but unofficial poli tical sources in Rome said deli (Turn to Page 2, Col. 1) Longview Vicinity Suffers in Storm Hangar Collapses, People at Dance Injured as5 - ? Tree Crashes in LONGVIEW, Wash., Dec. 21-(P)-H,Sb winds striking Longview and Kelso at 10: SO p.m. tonight collapsed a hangar housing at least three airplanes; drove a fall ing tree through a crowded dance hall and started 10 fires. Anlte Olsen, 19-year-old Puget island girl, received a fractured back when struck by the tree at the dance hall. She was in a crit ical condition at a Longview hos pital. Her cousin, Doris Olsen, 17, also of Puget Island, received cuts and bruises from the toppling trunk. The collapsed hsngar was at the Kelso municipal airport. The planes, left to face the wind with out protection, skewed crazily across the field, crashing into fences and ditches. Extent of the damage was not estimated. A shorted power line near Ka lama started a small forest fire which was raging uncontrolled at midnight. At the Pleasant Hill dance hall, north of Kelso, a large crowd was dancing In the light of coal oil lamps called into service as pow er lines failed when a tree 24 Inches in diameter crashed through the roof directly In front of the orchestra members and crushing the two women. The building material building, a lumber yard structure in Long view, collapsed in the wind. The frame structure had been used for storage. T Prayer for Peace Proposed by FDR NEW YORK, Dec. 21.-fl5)-Presldent Roosevelt, in a letter read today at special services in the Plymouth church of the Pil grims, called for prayers "that the day may be hastened when the kingdoms of this world shall become the kingdom of God, and the reign of moral force shall supplant brute strength In the government of men." 1 The services marked the trans fer from r the former Plymouth church to the Plymouth Church of the PUgrims of a piece of the original Plymouth rock, tradi tional landing spot of the Pil grims at Plymouth, Mass. The two churches, both la Brooklyn, were consolidated several years ago. The president's letter, read by the Rev. J. Stanley Durkee, pas tor of the church, said "We who hold, to the old Ideals of freedom must keep faith, even in the face of the challenge . of those ideals over large areas of the earth," ffit-Run Autoist , .1 j Kills Cyclist, 11 PORTLAND, Dec; 21-(AP)-A hit-run motorist killed 11-year-old Elinor Marian Falk outright on the super-highway - a half mile from her Milwaukee home tonight ' ; Witnesses . said the child was riding, her bicycle at the time the car- struck her and- roared away without stopping.'. V 1 :.';-, I . i .;;. . Princess Fails to Report STEPHANIE HOHENLOHE Princess Believed To Have Departed Stephanie Fails to Report but May Have Left Without Notice SAN FRANCISCO. Dec. 21-(P) Captain Frits Weidemann, nasi consul general in San Francisco, hinted tonight that Princess Ste phanie Hohenlohe of Hungary had left the United States secretly, complying with a government ouster order. "I think she has gone," Cap tain Weidemann said. The princess, friend of high nazis hei-e and in Europe, bad been, refused an extension of a visitor's permit, and the deadline for her depasture-was set for this mfdnight, - . Captain Weidemann declined to say whether he knew definitely where the princess was, and laughed when asked which route out of the country be thought she probably would have taken. Defense Speedup Coals Described Navy Orders Are Placed; Gravity of Crisis Is Cited by Knudsen WASHINGTON, Dec. 21-V The new defense high command today set as its goal maximum production "in every field which can contribute to victory" and asked for cooperation of "every element in the American com munity." The expression of purpose was made by William S. Knudsen, di rector of the office for production management of the defense com mission, in s statement at. the close of s day which saw these concrete steps in the rearmament program: Extension of the export control system to 16 additional Items, in cluding chemicals useful - in pro duction of war gases and aviation gasoline. Placing of navy orders totaling 1284,218,700 for submarine chas ers and auxiliary vessels. Includ ed were four ships designed for placing anti-submarine nets at entrances to strategic harbors. Knudsen asked the American people to. recognize "the full gra vity of the crisis" in the world and "figuratively to pull off their coats and roll up their sleeves and give their concentrated,- un divided attention to one thing the swiftest possible production of means of defense. He said "the contest which pro duced the crisis is irreconcilable in character, and cannot -be term inated by any methods of appease ment." "Both the future security of the United States and the total de fense for our democratic princl (Turn to page 2. coL T) Lata Sports PEORIA III-, Dec 2 1-(A-The University of Oregon salvaged a 87 to 48 victory over Bradley tonight to give. the barnstorming westerners a record of three tri umphs In - seven games of their transcontinental trip. Phenomenal shooting gave the invaders a 17 to 7 lead midway of the opening period at which point reserves took over and protected the .margin, Oregon bad a 28 to 20 lead at intermission and , was always seven . or more points ahead thereafter. ' " , Paul McCall, 'Bradley guard, paced the scorers with. 20 points and Hank: Anderson led the win ners with 11," , SAN FRANCISCO. Dee. 21-0?) -In nip-end-tuck battle . from start to finish, the barnstorming University of .Indiana basketball teanf edged out Stanford tonight, t to ft, breaking a . tie in- an overtime period: Stanford led at the half. 2 2 . to 21. - , Ousted 'i I s ' - '. :;"' '- V;:-:'.;y':v"-" . x V Bombs Shatter ide Party s, London Bodies and Tinsel "Mixed . in Tenement Rubble; Fear Many Dead 150 in Building Fail to Heed Raid Warnings; Air War Fiercer LONDON, Dec. 22-(Sunday)-(JPyA German bomb smashed Christmas parties in a London tenement .house last night and killed-an undetermined number of Londoners .who were singing car ols andexehanging"YuIeUde gifts. ... The-raiders scored their hit on the tenement house before mid night and thereafter the raid en the year's longest night tapered off Into a lull and the all clear sounded before dawn. ' In the streets outside lay bits of tinsel and a star from atop a Christmas tree. Amidst the rubble of furniture, bricks, children's toys and Christmas decorations lay bodies in their respectable "Sun day best." Hen and women who a little while before had been singing car ols and exchanging Christmas pud dings and candy stood dumbly about the ruins. "It came like a hammer blow," one man said. "My wife and I were out in the kitchen preparing some food. Inside they were sing tag 'God Rest Ye, Merrie Gentle men" and laughing and shouting. Suddenly we heard that awful woosh of a falling bomb. Thank God my kids are with their grand mother in the country. "There's what is left of the party," he said with a gesture at the broken homes. There bad been parUea all around the district, some in air raid shelters and others in homes. When the sirens sounded most of the people stayed In their bouses, believing it would be just another "light night,- " - - Then they were dead on the pavements or peering sadly into wrecked homes. The wounded had been taken to hospitals. Children still clutched eheap toys in the cold. - Firemen worked In the tene ment wreckage. There seemed lit tle hope that anyone below was alive the bomb had been a big one. As they worked, pathetic mementoea of the party were shoveled out into the street a bag of Christmas candies and a red and white figure of Santa Claus. There probably were 160 peo ple In the tenement at the time the bomb fell. The number of dead cannot now be released, German fliers had bombed a London apartment house earlier today, causing an undetermined number of casualties there. As they renewed the assault on the city tonight on this, the longest night of winter, raiders were re ported crossing the southeast coast at great height in at least two waves. Liverpool and other Merseyside towns were assaulted for the sec ond successive nights. The nasi air attacks which followed by 24 hours heavy British raids upon Berlin extended from the Eng lish channel to the Irish sea. During the day three nazi craft were officially reported shot down. Poor man, Secor Called ' To Year Army Duty PORTLAND. Dec. 21-fl3)-Or-ders calling five additional Ore gon reserve officers to a year's duty with the srmy were issued today by Col. J. J. Fulmer. - . Included were first Lieuts. John Melchor Poorman and Ralph Scha der Secor, Salem, to Fort Sill, Okla. v Group Crash Victihiknbw Identified As Mrs. C Wold of Newport That one of the four victims of the fatal automobile collision on the - Hazel , Green-SUverton road 11 muea northeast of Salem Fri day night was erroneously identi fied as Mrs. -mile Vallet, of Scotts Mills, was discovered yes terday afternoon by Deputy Cor oner Virgil T. Golden. The woman instead waa Mrs. Charlotte Wold, 40, of Newport, Golden announced. She is surxiv- ed by her husband, Bert, of Port land, a daughter, Margie M. HeW vey, of Glenwood, and her par ents, - Mr. - and Mrs. Gosaer, of Oregon City. William Winn, of Salem, one of the. two survivors of the crash, remained unconscious and In -critical, condition at Silverton Gen eral, hospital, suffering from -a basal skull fracture. The : other survivor, ' Darline Crltes,' 2, of Scotts ; Mills, . was suffering . severely . at : the same hospital - from shock . and a , frac tured thigh. bone, but was improve lnr Saturday night - v . Mrs.' Champ CV Shepherd, who was burned seriously by naming gasoline : when an automobile' in Salem VicimMMas Several Blackouts; Power Poles Down Yuletide Decorations Are Blown Down and Shopping Impeded; Silverton ' , Dark Linger Time, Has Fires j , Damage More Serious in Other Areas of Northwest; Building Topples , in Portland; Gusts Strong Whipped by a 'gusty wind which reached gale propor tions for short periods last night, high tension power lines in the Central Howell district between Silverton and Salem crashed to the ground at 8 o'clock carrying ten poles down and plunging Salem, into a ten minute "blackout" before power from west side lines along the Wallace road and from the Bonneville substation just out of West Salem could be switched in. Every available lineman in the area was called into duty to remedy the damage which spread over the west portion of Marion county and east section of Polk county in Inflation Guards Being Developed Doesn't Mean Government Expects Itv Asserted; Trends Analyzed By IRVING PERLMETER WASHINGTON, Dec. 21-;P)-Like firemen who purchase equip ment for fighting a catastrophic blaze which may never develop, administration economists are de vising methods of combatting in flation from, the multi-billion dol lar. defeh:prograja; although saying they do not expect It. Admittedly,'-the current situa tion, with ht. government putting unprecedented sums of money in circulation In the acquisition of weapon, contains elements tend ing to increase prices. ' After pro longed study, however, the pro fessional economists In the gov ernment are of the opinion that there la no real threat of infla tion. In general, here are their ten tative conclusions: 1. There will be slightly high er prices and greater mass spend ing power in terms of dollars (al though those dollars may not buy as much as at present). 2. After a decade of depres sion, the country can stand such a mild inflation, if it can be called that; perhaps ought to have it. 2. If real inflation threatens-) it can be checked. Over-simplified, what causes an Inflation la this: When money is plentiful, a large number of would-be buyers bid against each other for a desired article and boost the price. The seller, natur (Turn to page 2, toL 3) Prominent Eugene Lumberman Dies EUGENE, Dec. 2 l.-i5)-Death today ended the career of J. S. "Jack" Magladry, 76, prominent northwest lumberman. Manager of the Bohemia Lum ber company near Cottage Grove, he was also a member of the board of directors of the West Coast Lumbermen's association a past nresident of the Willamette Val ley Lumbermen's association, and a former republican state senator from Lane county. A daughter, Mrs. John Trott Murray, Portland, survives. which she was riding waa struck by a Salem Taxi ambulance bring ing in two victims of the first accident, waa described last night by her physician aa in "fairly ser ious condition." aa waa her hus band, - who suffered a head in jury whose nature had not - yet been determined. Both are in Sa lent general hospital. -, - The other three persona fatally injured aa a result of the acci dents were: Arch Clayton Winn, 87, Salem; Ted Crites, 34, and Mrs. Ted Crites, S3, both of Scotts Mills. - - ;- - 8tate police yesterday ' turned reports of. their Investigations of th two accidents over to, the dis trict attorney's officei Deputy Coroner Golden said It .would -be decided Monday whether- or not an Inquest would be held. . I SILVERTON, Dec. 21 Fun eral services for Mr. and Mrs. Ted Crites, victims of automobile ac cident Injuries Friday, will be held -Monday afternoon at ' 2 o'clock from the Ekman funeral home here with interment In the Odd' Fellows .cemetery at Scotts Mills. '.-- : - . f.- -. sporadic interruptions. Second major interruption came at 10:18, lasting four minutes. Most severely bit large area was East Salem where lights were off for more than an hour and a half following the S o'clock in terruption. An 11.000 volt line was burned out requiring exten sive repairs, W. M. Hamilton, di vision manager of the PGE com pany in this area, said at midnight.- , , Local damage extended to falling- limbs and trees cutting street lines and some rural service wire. Silverton electricity was cut off at 1 o'clock this morning to re pair damage from a -burnlnr ia- hsulator believed fired by light ning, The Brooks area was black-' ed out until mldn!gb"w' Officers of the Pacific tTele phd and Telegraph company in this area reported numerous lines down at midnight. The Statesman wa unable to reach the airport weather station for the midnight forecast last night. Included in damage credited to the wind was the blowing down of several of Salem's overhead Christmas decorations. Salem firemen were called out during the . darkened period to extinguish three of the 12 chim ney fires reported last night. The three were at H I g h 1 a n d,and Myrtle avenues, 1198 North 17th street-and S88 North Commercial street. The other nine of the 12 blazes, sll reported between 7:S and 8:45 p. m., were at 1425 North 18 th street, 411 North Front street. 24th and Chemeketa streets, 1665 Olive street, Broad way and Shipping streets, 1284 Court street. 625 South 25th street, the California Packing plant, and at 260 South 16th street. SILVERTON. Dec. 21. Silver ton was "blacked out" for an hour and a half tonight due to power failure resulting from high gusty winds, amidst great Incon venience to merchants and Christ mas shoppers. Power was off from 7:57 to 9:25 p. m. And while the lights were out, two fires occurred one in the office of the Portland General Electric company which was al ready having Its troubles. The fire, resulting from a short cir cuit, damaged a desk and burned some papers in a pigeon-hole be fore its existence was discovered by Helmer Jorgenson. The other fire was at the Joha Kloster home north of Silverton. The house was saved despite a delay in calling firemen by tele phone, necessitated because the powr failure kept the siren silent. SEATTLE, Dec. 21-A)-A wind reaching- hurricane proportions ia places ripped across western Washington and Oregon tonight, blacking out cities, toppling tele (Turn to Page S, CoL I) Soldiers Return Fir-Yule Period Salem took on some ef the as pects of an army camp as local boys returned In numbers from the-camps on Saturday and many others passed through beaded for their homes farther south in Ore gon. - PORTLAND, Ore., Dee. 21-$P-Thousaads of 41st division sol diers national guardsmen sta tioned at Camp 'Murray. Wash. poured through : Portland today en route home for Christmas. - S Every : conceivable mode - -of transportation was represented by. soldiers . reaching bere en route to Oregon. Idaho, . Montana, and Wyoming homea, , Two special troop train palled out of the Union- station and crowded basses took; others- on their way... . . . The eager -soldiers, " many , tl them on their first trips home since' mobilization in September were part of the division's 12,00 men granted 11-day holiday leaves,.:, . .;: ; -v-.; "'.- .. -" .:. 'i , rV "-t'i i :z i