Image provided by: University of Oregon Libraries; Eugene, OR
About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Aug. 5, 1937)
G apit aLaJoiaraal Circulation Distribution 10,797 Net Paid 10.444 For Month Ending July 31. 1937 Member Audit Bureau of Circulation Weather Fair tonight and Friday, partly cloudy on coast. Moderate northwest wind. Wednesday: Max. 89.9, mm. 55 . Rain 0, Rlv. -2 8 ft. Light north west wind. Clear. 49th YEAR, No. 185 Xi SALEM, OREGON, THURSDAY, AUGUST 5, 1937 PRICE THREE CENTS ON IK AIM. AND MEWS stands nvB curia nutter Salem. Oregon mm hems smmM era? M NARY RAPS CIRCULARIZING OF THE SENATE Housing Bill Propaganda Defended by Senator Wagner Called Bold Attempt to Influence Legislation- Sent to All Senators Washington, Aug. 5 UP) Clrcula' tion to senators by page boys of a statement urging reconsideration of an amendment to the Wagner housing bill caused an uproar in the chamber today. Circulation of the statements, called "propaganda" by Senator Clark (D-Mo), was denounced both by the Missouri senator and Senator McNary, republican leader. Clark made a point of order against the procedure. Senator Pittman (D-Nev), presi dent pro tempore, who was presiding, ruled the pages could not be blamed. and that if any blame attached to the matter It should be laid to the senator who had ordered the dis tribution. Senator Wagner (D-NY), author of the housing bill, quickly assumed (Concluded on page 14, column ft) NORTH SANTIAM TOUR PLANNED Stayton, Aug, 6 August 31 has been tentatively set as the date of in official automobile caravan trip dedicating the North Santiam high way as the connecting link of a cross-state motor route from On tario westward to the Pacific high way in Lincoln countv Governor Charles H. Ma-tin has consented to accompany the cara van on that day, as have memuers of the state highwsv commission, and other state officials are being Invited to participate. As tentatively planned by the Stayton Chamber of Commerce, with the cooperation of the Salem Chamber of Commerce, communi ties all along the route to be trav eled by the caravan will be asked to participate in the event. The tour will start from the north Lin coln county beach resorts and move eastward over the Salmon river and Wallace bridge cut-offs to Salem to pick up the governor's official party early in the morning. From Salem the caravan will pro ceed over the Cascade mountain barrier via the newly opened North Santiam route to Bend for a lunch eon program to which cities along the eastward routes via the John Day and Central Oregon highways have been Invited to send delega tions. $100 MILLION LOAN TO CHINA PLANNED London. Aug. S VP) China, through her finance minister, has reached agreement In principle In London on a 1100,000,000 loan to his country that may be world wide in scope, a Chinese embassy spokes man said today. It would be secured by Chinese customs revenue and probably be raised by general subscription. The upvnHiltnu Mill IIIK1C3. Ul MIC piU ject had been shown in the united States, France and Belgium, as well as in or eat Britain, The announcement was made aft- r Dr H. H. Kung, the foreign mln later, had left for Paris. Details were not worked out. It was stated Should the loan materialize. In fo! med quarters intimated. It might oe applied to conversion of China's Internal loans. MAJOR ELLENBURG ' HAS HEART ATTACK Medford, Ore.. Aug. S ( William H Ellenburg, 43, a sergeant In the state' police office here, and a major In the Oregon national guard, was stricken with a heart affliction at his home late yesterday. Ellenburg is a native of Monroe. Ore., and formerly resided In Rose burg, Marshfleld and Eugene. He has been a member of the state police since Its Inception. NOVELTIES in the NEWS Great Neck Estates, N. Y.. Aug. 5 (U.PJ Village officials, acting In the Interests of safety, chopped down a 90 foot oak tree that had been standing for 130 years. Enraged residents promptly sued for $25,000 on the ground that destruction of the tree had lowered property val ues. New York, Aug. S (U.R) "Popcye' and "Betty Boop" strikers at the Fleischer studios. Inc., cartoon pro. ducers, watched their latest picket ing idea go up In the air literally. The 40 pickets had hitched a box kite,covered with printed appeals to non-strikers, to a cluster of gas filled ballons. They had planned to fly It in front of the studio. A crowd had gathered for the event. Then came the sad news from un ion headquarters that one of the ropes holding the kite had come un done, letting the whole contraption float away. Boston, Aug. 5 (UP) Jamts Ma gulre, 14, found a six inch stick on a street. He picked It up and took It home, then went for a swim. Four hours later he stuffed the stick Into a back pocket and started for police headquarters. En route he stopped and listened to a band concert for two hours. When James finally reached headquarters, police found the stick was dynamite with fuse attached. Sacramento, Calif., Aug. 5 (U.R) Joseph Correy, deer hunter, shoots better in emergencies. A buck eluded four of his shots, but when Correy turned to find a mountain lion crouched to leap on him, he killed the beast with one shot and brought It to game offi cials to collect a $30 bounty. Kansas City, Mo., Aug. 6 (U,R Oravedlggers and other workers called a strike and ordered out pic kets today at 11 Kansas City ceme teries. Ten funerals scheduled for today were affected. About 150 cemetery workers were Involved. They belong to the gen eral laborers' local union, an Amer ican Federation of Labor unit. FLAX PULLER MAY BE SEEN A good many persons who have never seen a flax puller at work will have the opportunity to see one Fri day afternoon of this week on the W. H. Miller farm, which la on the old Ben Funston farm southeast of Turner. The exact location Is de scribed by L. L. Laws, official of the state flax Industry. Laws describes the place as "in the H. W. Miller 20-acre field on the old Ben Funston farm about one mile east and IK miles south of Turner. Go through Turner about a mile. then to right on Marion highway 1 miles. The field Is on the right about 300 yards oft the highway on gravel road. Drive Into the field. Doug Bailey, the puller operator, will be glad to explain its workings, and Mr. Miner will answer Inquiries about growing flax. Someone from the plant will be there between 5 and 6 o'clock to answer flax questions in general." A number of persons have asked when and where they might see a flax puller at work," Mr. Laws ex plains, "and It Is very hard to direct them because most of the fields are small, the time of arrival of a puller uncertain, and only a day or two re quired to harvest the crop after the puller arrives." Japan Trying to Break Chinese Impasse by Both Peace and War Diet Told Tokyo, Aug. 5 (IP) Foreign Minister Koki Hirota told Japan g diet today that the government was trying to break the Sino-Japanese impasse by both peaceful and warlike means. At the same time the Dome! (Japanese) news agency said It un derstood Japan was contemplat ing calling the attention of the United States government to "un favorable effects" an Japanese American relations of a reported statement by Russell L. Hcam In Los Angeles that 183 American pil ots were ready to go to China to man combat planes. Hirota, answering questions, said he did not believe the Chinese situ ation could be settled by armed force alone. Hence, he added, the Japanese government was conduct-1 DEATH FIGHT PROCLAIMED BY CHINESE CHIEF Chiang Kai-Shek Says Chinese to Resist to End Japanese Advance Americans Ordered to Guard Lives and Leave Plan Punitive Acts Shanghai, Aug. 5 W) United States consular officials in all China organized the whole American popu lation to guard their lives and get them out of possible danger zones if necessary while China's general issimo, Chiang Kai-Shek, suddenly proclaimed: "We will fight to the death." By nightfall the month-old un declared war brought these de velopments: 1. Columns of motorized Japan ese troops rolled north to halt a Chinese advance from behind China's great wall. 3. Generalissimo Chiang Kai Shek, China's "strong man" leader of the central government, flew to Kullng to tell the nation's chief educators that China will resist the Japanese advance "even though it (Concluded on page 11, column 8) YELLOW RIVER JAPS OBJECTIVE Nanking. China, Aug. t UP) (Friday) Official foreign circles In the central Chinese capital hear today that the Japanese army had Informed diplomats at Tientsin that Slno-Japanese hostilities would be pushed to the banks of the Yellow river. "North of the Yellow river lies the 5-provlnce territory in which Japan desires a dominant economic in fluence; Hopeh, Chahar, Shansl, most of Sulyuan, and the northern third of Shantung. Most of the Chinese central government's troops presumaoiy are still south of the river. Most of the fighting so far has been In Hopeh. The information received here swd the Japanese consul at Tient sin, at the Instance of the Japanese army, had told the senior foreign consul tnere: "Continued concentration of Chi. nese troops north of the Yellow river means hostilities in that re gion. "Therefore the Japanese military suggests that foreigners In that area be warned accordingly." BELATED TRIBUTE PAID TO TRUCKERS Tours, France. Aug. 5 (U.PJ Belated tribute was paid today to the 650. 000 men of the "8.0.8." who fought the war by loading and unloading the supplies for the 1.350,000 Amerl. can troops In the front line area. In the presence of Gen. John J. Pershing and high Fiench and Am erican authorities, a fountain was unveiled on the banks of the Loire river to commemorate the labors of the service of supply of the A.E.F. ing diplomatic negotiations with Nanking alde-by-slde with Japanese military operations in North China. The communist Influence In China Is annoying Chiang Kai Shek by fanning anti-Japanese flames," said the foreign minister. "We do not think that all China is colored by antl-Japanlsm. Hence If some way is found of controlling the more radical Chinese we be lieve there Is a possibility of eo- operation between China and Ja pan. "China may want something from (Concluded on pate 14, column 11 i CLAUDE McCOLLOCH McColloch Nominated U. S. Judge Washington, Aug. 8 VP) Presi dent Roosevelt today nominated Claude McColloch to be United States district judge for the dis trict of Oregon. News of President Roosevelt's nomination of Claude McColloch as U. 8. district judge for Oregon was received with satisfaction here to day by Governor Charles H. Martin "I am very glad it is settled. commented the governor. "McCol loch is a very able man and will make an excellent Judge." The federal judgeship was thrown open last fall with the death of Judge John H. McNary. McColloch, state democratic chairman, is an attorney of Klam ath Falls and a member of a fam ily prominent In Oregon law and politics for many years. His broth er, Frank C. Mccoiiocn, was ap pointed by Governor Martin public utilities commissioner and served until his resignation a few months ago to practice law in Port land. His father, C. H. McColloch, has for many years been circuit Judge of the eighth judicial district at Baker. McColloch was born at Red Bluff, Calif., in 1888, educated In the pub lic schools at Portland, Stanford university and University of Chi cago. He was admitted to the bar in 1909 and has been in continuous practice since. He was a member of the state senate 1911-13 sessions, city attorney of Baker 1911-13, (Concluded on page 11, column 7) BOYER REFUSES ELECTION CALL If J. S. Baker, of Turner, and others Interested In the recall movement of County Judge J. C. Slegmund expect to compel County Clerk U. O. Boyer to call a recall election they will have to resort to the courts and secure an official order directing him to do so. When the time for filing of the recall petitions expired on July 31 there were 4587 names attached to the petitions filed with the county clerk. After checking the lists Boy er ruled that only 3371, 795 less than were required by law, were valid signature of qualified voters. Late yesttTday Baker filed an af fidavit with the county clerk al Kging that wo of the 1218 rejected signatures were those of fully qua! ified voters. After conferring with District Attorney Lyle J. Page and acting upon Page's previous advice that voters to be qualified to sign such petitions must be registered. Boyer today said that he was writing to Bauer to tell him that he would re fuse to call an election. CANCER RESEARCH MEASURE SIGNED Washington, Aug. S (US) In the presence of Senator Homer T. Bone. (D., Wash.), President Roosevelt today signed a bill to authorize the government to set uo a 1750.000 re search institute to seek the cause and cure of cancer. Bone, one of the sponsors of the measure, announced the signing as he emerged from the executive of fices after a conference with Mr. Roosevelt. The measure authorizes the gov ernment to suit a concerted at tack on the disease which annually takes the lives of 140.000 Americans. The measure, passed by both house and senate without opposi tion, authorizes construction of the new Institute In Washington, and makes provision for a 1700,000 an nual appropriation to carry out the research program. BILL TO PLUG LOOPHOLES IN INCOME TAXES Drastic Increases in Do mestic Personal Hold ing Company Taxes Stiff er Tax Treatment For Incorporators of Yachts and Talents . Washington, Aug. 5 (IP) A sen. ate-house tax committee recom- mended today drastic Increases In domestic personal holding company taxes as one means of preventing tax avoidance. The committee, proposing for en actment at this session on 1 100,000, 000 eight-point program of leglsla tion to plug Income tax leaks, also recommended an innovation in the taxation of foreign personal holding companies. It suggested that undistributed net income of such companies should be figured in the gross In come of the American owners of the companies just as if it actually had been distributed to them. Treasury officials, who cooperat ed with the joint committee in making an Investigation which brought in the names of many prominent citizens, estimated roughly that enactment of the com- (Concluded onpsse 14, column 8) papc1pany increase small Oregon Pulp and Paper company. subsidiary of the Columbia River Paper company, showed an Increase In net income for 1938 of $17,353 or nearly 1.5 per cent over 1935, ac cording to the audited balance sheet u of December 31, 1938, Just submitted to stockholders by F. W. Lead better, president of the parent company. Total net income after all charge es. Including taxes, for 1938 was (134.318.98 as compared with $117, 08133 the previous year. Net income for the year before payment of bond interest and ex pense, depreciation and federal In come tax Is shown as 1404,158.97 for the year. Total assets are shoi.i at 18, 352,142.40 with current assets of $1, 110,487.88, total properties of 14.- 465,783.69 and other investments of (512,075.95. "Although the combined showing of the mills for 1936 la considerably oeuer than for 1935, conditions are still not satisfactory, for the rea son that the cost of labor and raw materials has increased proportion ately much more than the prices thus far realized from the sales of paper." says President Leadbetter's report. Judge Peters Calls Pinball Hearing Hlllsborc. Aug. 5 P-Clrcult Judge PeU rs rejected a verbal peti tion from District Attorney C. Rus sell Morgan of Washington county that a temporary order protecting plnbaii machines of William M. Martin from Interferance by offi cers be dissolved Immediately, Judge Peters called a hearing on the petition August 17. Spanish Loyalists Claim Victory Over Moors in Hand-to-Hand Fighting (Br tht Associated Press! Spanish government forces, rallyintr to defend the Madrid-Valencia "life line" north of a highway to Cuenca sxirmisn from insurgent Moorish forces. A government communique said hand-to-hand fighting, ten miles southwest of Teruel. base of the in surgent Aragon drive, ended with the bodies of turbaned Moors strewn over the battlefield. In northern Spain Insurgent re ports gains In a decisive defeat of their enemy near Cuero. The insurgent gunboat Da to was reported to have sunk a small trawler of unidentified nationality a It attempted to run the block ade of government-held Santander on the Bay of Biscay. ,f V a ' ,, ., v. M C?fc . .' . ' - 1 - k I "J menu y A VICTORIOUS SKIPPER Harold 8. Vanderbllt, owner of the yacht Ranger, who successfully defended the America's cup In four straight victories In which he demonstrated superior sea manship as well as a superior yacht. (Associated Press Photo.) MARTIN, BALDOCK AND PRAY ENDORSE SET SPEED LIMITS By HARRY CRAIN Governor Charles H. Martin, R. H. Baldock. state high way engineer, and Charles P. Pray, superintendent of state police, today added their voices to the growing demand for the establishment of fixed speed limits on Oregon roads, streets and highways as a means of curbing the alarming in crease In death and Injury In ac- cidents. All three were agreed that Ore gun's experiment with "Indicated basic speeds" has not proven suc cessful, and that fixed limits to facilitate enforcement of traffic laws are needed. Governor Martin contented him' self with endorsing the recommen dations of his highway construc tion and policing chiefs and the added statement that "I believe the establishment of fixed speed limits la the thing to do. "We cannot afford to let these speed fiends run loose to kill and main without restraint. Baldock and Pray were more specific and detailed in their rea sons for abandonment of the "ba- (Conctuded on rinse 14, enlumn PIERCE WITHOUT DAM CANDIDATE Washington, Aug. 5 KIP) Repre sentative Walter M. Pierce of La Grande, Ore., said today he was "taking no part" In the selection of an administrator for the Bonneville dam power project. Noting receipt of a message from the Oregon Jackson club which asked If he would "continue to op pose" appointment of J. D. Ross, Seattle light plant manager, as tJ- ministrator, Pierce said he had neither recommended anyone for the Job nor protested against the appointment of anyone," Anyway, he added, "the ap pointment will be made by the pres ident and anything I might say for or against anybody would be Just a waste of breath. road, took defense positions and announced they had won Evacuation of Santander, reduced to serious straits by crowding and lack of food, was reported under consideration. Valencia government officials, re porting efforts made to preserve Spain's art treasures, said two chests of Jewelry, securities and art ob jects, believed lost In transfer at Barcelona, had been recovered. The "hands-off-Spain" commit tee of nations was suddenly called together in London by Its chairman, Lord Plymouth. Hope that the So viet union would agree to belllger (Concluded on page 14. column 41 WHEELER HITS AT SLUSH FUND Washington, Aug. S (JP) Senator Wheeler (D-Mont denounced the democratic national committee to day for soliciting campaign con tributions from Robert R. Young, New York railway magnate. Wheeler, chairman of the senate railroad investigating committee, said the solicitation was a "deplor able practice," and added: "It might give the impression that people had to give money In order to get proper treatment, or that they might get some kind of favors." Young testified yesterday he bought $15,000 worth of democra tic national convention books early this spring, but that the solicitors had "positively never discussed" his dealings with federal agencies. At today's hearings opened, Wheeler declared: "I resent the democratic com mittee going to people Just prior to their coming here and soliciting funds." "It reflects on the committee and every other branch of congress," Wheeler continued. "Some groups who denounce eco nomic royalists are getting hand outs from the very people they de nounce." He asserted that whether such matters were mentioned by the soli citors or not "there is always an Inference" that special favors or concessions might be Involved. PROMISE DEMANDED FOR CROP LOANS Washington. Aug. 5 (U.R) Presi dent Roosevelt told cotton states congressmen today that It congress will assure him that farm crop control legislation will be consid ered next January, he will take action toward a crop loan program at the present session. The Presidents statement was made to a group of eight repre sentatives and one senator, repre senting a bloc of southern con gressmen who had threatened to Impede other administration legis lation unless a farm price stabiliza tion leglslaUon Is enacted this ses sion. Mr. Roosevelt, the group report ed, said that assurance that con gress would consider crop control legislation next session should come from senate or house leaders, or from a democratic caucus pledge. TYPHOON KILLS 130 KrIJo, Korea, Aug. S One hun dred and thirty persons were killed and 18 Injured today by a typhoon which caused widespread property damage la northern Korea. FOURTH RACE IS EASILY WON BYDEFENDER Endeavor II Gets Off to Bad Start Ahead of Sig nal and Never Catch Up Most Humiliating Defeat In 86 Year History of Yatching Series Aboard Coast Guard Cutter Argo, off Newport, R. I., Aug. 9 UPy Gaining her lead on a record ten mile windward leg and holding it safe over the rest of the 30-mlle triangular course, Harold S. Van- derbllt's sleek, snub-nosed Ranger today led T. O. M. Sopwlth'a En deavour II, the British challenger. across the finish line by approxi mately half a mile to score her fourth and deciding victory In de fense of the America's cup. ' Thus Vanderbllt, who piloted En terprise to victory over the late Sir Thomas Upton's Shamrock V In 1930 and skippered Rainbow in her triumph over Sopwlth's first chal lenger, Endeavour I, In 1934, became (Concluded on pnire is, column 1) RAIL WORKERS GIVEN INCREASE Washington, Aug, 5 (U.R) A II cent, per hour Increase today ended a two month wage controversy be tween railroad executives and 14 unions representing 800,000 non- operating employes. The Increase, It was estimated. will cost the carriers $08,000,000 an nually. The unions had demanded a pay raise of 20 cents an hour. The national mediation board. which announced settlement of the controversy, said only ratification by the general chairmen of tha railroad brotherhoods Involved was necessary to make the agreement effective. It will be retroactive to August 1. Mediation had been pressed since July 16. The unions announced this week that a poll of their mem bers showed that 88 per cent fa vored a strike if their leaders could not reach, an agreement with rail road executives. The mediation board referred to the "orderly settlement" as a "high tribute to the calm Judgment and the foresight of both ratlroa4 employes and managements." SETTLEMENT MADE IN LAST DISPUTE Portland, Ore., Aug. 5 (U.R) An nouncement that an agreement had been reached between the southeast Portland Lumber company and lo cal No. 2532. Lumber and Sawmill Workers' union, marked settlement Wednesday of the last remaining dispute on the Portland mill labor front. The new accord with the mill, which had been on union labor's unfair" list since 1935, was an nounced by John H. Sullivan, busi ness agent of the union, who said the local now contains nearly 4.000 membcTS. Labor at a Glance Bt the Associated Press) Detroit Police guard against new violence between CIO. and Inde pendent union members at Chrys ler's huge Plymouth motor plant which remained closed today with 18,000 employes idle. Philadelphia Emergency pollcs force hunts men who continued rioting after conclusion of 50 hour strike of truck drivers; 60 held un der 110,000 ball each. Montreal Dominion Textile com pany shuts down nine mills, refus lng collective bargaining, wage and hour demands of National Cathollo Federation of Textile workers; nearly 10.000 called on strike. New York Tom M. Olrdler, Re public Steel chairman, says steel' labor trouble "over" and he does not anticipate any more. Boston Pour Haverhill shoe companies employing 360 persona notify state of Intention to leave) Massachusetts after strikers reject i per cent wage Increase; strikers iking 30 per cent raise.
