A
C apitaimJoiniraa!
Weather
First in News Photos
Wlta tht Associated Preaa et
elusive Tele-Mat eervlca, tht Capi
tal Journal la enabled to present
photo ol world events within a
few boura ol their occurrence.
Cloudy tonliht and Wednesday,
with light rain or mow, continued
cold; moderate northwest wind.
Yesterday: Max. 37 J. Mln. 344
Rain M In. Riv. 13 tU Northeast
wind, cloudy.
49th Year, No. 303
FDIR
kFear Bombing of Seaports
Labor Peace
Conference
Collapses
AFL and CIO Remain
Enemies President
Gets Northwest Repo-t
Washington, Dec. 21 (&)
The peace conference between
the American Federation of
Labor and the CIO collapsed
today.
After a half-hour meeting,
George M, Harrison, chair
man of the AFL peace com
mittee came from the con
ference room to tell the re
porters :
"The conference is all off."
The CIO delegation. Harri
son asserted, had said they saw no
use continuing.
"We had nothing new to offer,"
Harrison added, "and so we decided
there was no use to discuss peace
any further.'
(Copyriiht br United Preu)
Washington, Dec. 31 (U.R Presi
dent Roosevelt has received a spe
cial memorandum from Secretary
of Labor Perkins on the American
Federation of Labor and Committee
for Industrial Organization dispute
in the northwest lumber industry,
it was learned today as the rival
labor factions prepared to resume
peace negotiations.
The report was prepared especial
ly for Mr. Roosevelt, It was learned,
and submitted to him at the last
cabinet meeting, December 17. It
concerns only the CIO-A.P. of L.
(Concluded en Pare It, Column 6)
No Peace Effort
By Japanese
London. Dec. 21 lP Prime Min
ister Neville Chamberlain told the
house of commons today that '
attempt has ever been made by
Japan for peaceful settlement" of
her war on China.
"It Is time now for the Japanese
government to show they are not
unmindful or the rights and Inter
ests of foreigners and that their as
surances and apologies meant some
thing more than words," the prime
minister declared.
Concerning the entire foreign sit.
uation, he said Great Britain's "del.
Inlte objective" Is the "settlement
of the grievances of the world with,
out war."
Chamberlain declined to be drawn
Into a discussion of the origin of
the Chinese-Japanese war but dealt
apeclficlally with Japanese attacks
on British ships.
"What we are doing now Is await
ing proof of the determination of
the Japanese government to prevent
recurrence of these Incidents x x x
he said.
"We still are anxious to serve the
cause of peace by means open to
us. But It must not be thought that
our desire for peace and our pa
tience under repeated provocation
means we either are Indifferent to
our International obligations or that
we are forgetful of our duty to pro
tect British interests."
How-de-Do!
Sips for Supper
By Don Upjohn
We offer an apology to our custo
mers for the remark In our Inconse
quential column of yesterday that
there are four shopping daya until
Christmas. It was called to our at
tention today that In fact there are
only three shopping daya left. We
suppose tomorrow somebody will
call It to our attention again there
are only tw left. But rather than
be misleading we set everybody
right. And Just to catch up well
add that on Saturday there 11 be no
shopping daya before Christmas.
So If you can't do your Christ
mas shopping early do It as early
aa you can.
Incidentally we were somewhat
fussed up this a. m. on arising and
remembering this Is the shortest
day In the year. It sure makes us
hustle to get a column In the limit
ed tune allowed. It seems today Is
only nine hours. 14 minutes and a
(Concluded M Page 10, Column 1)
Enured second clue
matter at Salem, Oregon
Opposes Peace at Artprice Policy
Show of Naval
Might Likely by
Great Britain
Far Eastern Parade to
Impress Japan Said
Under Consideration
By Associated Press)
Great Britain is considering
a show of naval might to im
press Japan, at war with Chi
na, and hoped today Ameri
can and trench warships
would join in a far eastern pa
rade which might check "Ja
pan's aim to dominate China
to the complete exclusion of
foreign interests."
Attacks against American
and British gunboats are the
current cause of resentment.
but the basic cause la that Britain
fears Japan will try to ease out
other nations with economic Inter
ests In the Orient.
Britain concentrated her naval
force In the Mediterranean In 1935.
and Inspired sanctions against Italy
by ,53 nations. Both actions roused
Premier Mussolini's resentment but
(Concluded on Pnse 11, Column 7)
Countess Bab
Much Surprised
Cherbourg, France, Deo. 21 W)
Countess Barbara Haugwits-Revent-
low, heiress to the Woolworth mil
lions, said today she renounced her
United States citizenship because
"It was quite the natural thing to
do."
"It seems surprising that my
adoption of my husband's nation
ality caused comment In the United
States," said the former "Babs"
Hutton as she disembarked here
from the Europa.
"It la quite natural that a woman
should take the nationality of her
husband. It makes It easier to regu
late life and Irons out traveling
troubles. It Is Important In business
too."
(The Countess was married in
May, 1935, In Reno to Count Haug-wlu-Reventlow
of Denmark. Last
week. In a surprise visit to New
York, she renounced her American
citizenship to become a subject of
Denmark.
(She inherited some 120,000,000
of the great fortune accumulated by
P. W. Woolworth, 5-and-10-cent
store magnate.)
The 17-year-old heiress, smartly
dressed, said she was "very tired"
from her rush trip to the United
States. She watched her dozen
trunks pass through customs and
then took the boat train to Paris,
where she Intended to rest several
daya before Joining her husband at
Saint MorlU.
Japanese Launch
Pacifists' Purge
Tokyo, Dec. 31 (Pi It was author
itatively disclosed today that the
arrest of 370 pacifists and leftists
since last Wednesday probably would
be announced tomorrow.
Those Jailed Included professors,
writers and politicians. They will be
charged with violating the Japan-ese-Itallan-Oerman
anti-communism
pact and similar offenses.
Mrs. Honeyman for
Road Fund Slash
Nan Wood Honeyman, congresswoman from Portland,
apparently will stand behind the president in his request to
cut down federal road funds to assist in balancing the federal
budget. At least, a letter received
from her by Marion county court
members Indicates her swing In that
direction in the concluding para
graph of her letter In which she
says:
"The only way the government
can balance the budget Is to curtail
expenditures. If assistance toward
balancing the budget la to be given
by retrenchment in road appropria
tions and at the same tune a desir
able road program la to be carried
on. It would be better for the states
to take up the slack because of the
Important fact that the national
debt affects the soundness of mon
ey, whereat tht suit debt does not."
Robin Reed
Divorced
Eva I. Reed was today granted a
divorce from Robin Reed, former
national amateur middleweight
wrestling champion and also Olym
pic holder of that title. The decree
was handed down from the bench
by Judge L. O. Lewelllng today who
has had It under consideration for
several months. The divorce pro
ceedings were instituted by the wife
who alleged cruel and Inhuman
treatment and contested by the hus
band at a trial last summer which
consumed several days when al
leged troubles of the two were aired
at length as well as the financial
status of the respective parties. Mrs.
Reed is a daughter or Warren Reed,
founder of Reedsport, and long
(Conducted on Past 10, Column 8)
9 Destroyers
At San Pedro
San Pedro, Calif., Dec. 31 (P)
Fleet organization and training was
the official explanation In the
United States fleet today for the
sudden transfer of nine destroyers
from San Diego base to San Pedro.
The United states fleet Is said by
staff officers to be in the highest
state of efficiency and training in
Its history, ready for Instant action
In any emergency.
Admiral Arthur Japy Hepburn Is
one of the hardest taskmasters the
fleet ever had. His methods of train
ing are the most realistic ever put
Into effect In time of peace. He Is
secretive, placing much emphasis
on the evaluation of surprise, one
of the cardinal principles of war. -
For the past four years the
United State fleet had been drawn
away from routine functioning and
subject to emergency and unexpected
orders. Admiral J. M. Reeves Initia
ted this four years ago. In his two
yeara of duty as commander-in-chief,
there were many sudden or
ders, some affecting the whole fleet.
The ships of the fleet are com
pleting their gunnery schedules of
the year and soon will go Into the
maintenance and repair stage prior
to the change of command January
39, when Admiral Claude C. Bloch
will succeed Admiral Hepburn.
Liner Hamburg
Collides at Sea
London, Dec. 21 (JPh-The United
States liner City of Hamburg col
lided with the Italian steamer Con
fldenze during fog off Terschelling
in the North sea today and was
damaged heavily but was trying to
make port under her own power.
Two holds of the City of Ham
burg were flooded.
The motor lifeboat Brandarls and
the tug Holland steamed from Ter
schelling harbor. The Netherlands,
to answer distress calls but found
it unnecessary to remove the lone
passenger. Miss Herta Peters of
New York City, or any of the crew,
at least for the time being.
The Brandarls returned to har
bor, but the tug remained with the
damaged ship which United States
lines in Hamburg said was making
for Cuxhaven.
The 6458 ton Italian ship, regis
tered out of Genoa, suffered slight
damage.
Although the City of Hamburg
first radioed she was "sinking fast"
it was ascertained later that she
was in no immediate rianaer.
The green steamer Holkles, near
by when the collision occurred, was
reported standing bv. A German
tug also left Hoek-Van-Holland to
go to the liner's assistance.
The letter, aent in response to a
telegram from the court asking for
news of various members of the
Oregon delegation, also goes Into
the matter of federal expenditures
of road funds In Oregon.
"The federal government.1 she
says, "has expended far more money
on hlghwaya and roada in Oregon
than It has collected there from the
federal gasoline tax. The state's
own figures as of April 30, 1S37. give
the total receipts from the United
States government In cooperative
aid and for construction and main
tenance of Oregon's hlghwaya as
(Canelnded as Page It, Columa 41
Salem, Oregon, Tuesday, December 21, 1937
Great Coastal
Cities of China
Menaced
Hangchow, Canton and
Tsingtao to be Attacked
Panay Story Changed
Shanghai, Dec. 21 (P)
Japanese troop and warship
movements today aroused
Chinese fears that three of
the nation's great coastal cit
ies would suffer the fate of
fallen Nanking.
The Chinese expected Jap
anese to drive against Hang
chow, Chekiang Province sea
port some 110 miles south and
west of Shanghai, Canton,
China's southern metropolis,
and Tsingtao, Shantung Province
seaport to the north.
There were authoritative reports
that 11,000 Japanese soldiers with
drawn from the Nanking area em
barked last night from Shanghai,
apparently bound for Canton,
A party of 300 American and
British women and children at
tempting to flee war threats In
central China were turned back
toward Hankow, one of China's
three temporary capitals.
A military boom across the Yang
tze river at Matung, 100 mues above
(Concluded on Page 11, Column 8)
$9,000,000 Job
WPA Record
Seattle, Dec. 31 ttJ.fi State WPA
Director Don G. Abel today an
nounced the largest WPA project
in the nation, with a federal appro
priation of more than $9,000,000,
was being prepared to clear the area
that will be flooded when Grand
Coulee dam is completed.
Three thousand men will be em
ployed on the project for three
years, Abel said. The project will
cover an area from the dam to the
Canadian border, a distance of ap
proximately 150 miles. More than
28,000 acres of land wlU be cleared
for a reservoir site.
Two hundred and fifty miles of
fencing 100 miles of telephone lines
and 1,200 buildings and three cem
eteries will be removed.
Seventy-seven miles of primary
state highway and 68 miles of sec
ondary county highway will be con.
structed. Twenty-five miles of rail
way track will be removed, then
re-laid. Twenty-five miles of tele
graph line also will be taken up.
More than 150 miles of barbed-wire
fence will be built.
Labor Vandalism
Renewed in City
Portland, Ore., Dec. 21 (U.F& Van
dalism again broke out today In
Portland's labor war which has seen
the lumber Industry all but paraly
zed for nearly five months.
Police were informed someone
armed with an Ice pick punctured
20 tires on 12 automobiles parked
near the labor temple after mid'
night. The cars were owned by
members of the Motion Picture Op
erators' union which meets in the
temple after midnight. Police, how
ever, believe It was more of an at
tack on the American Federation of
Labor than a specific attack on the
motion picture operators, who have
been experiencing no labor diffi
culties.
The lumber dispute remained quiet
today with two mills out or seven
operating while a report from Wash
ington, D. C Indicated President
Roosevelt was making a personal
study of the A. P. of L. C.I.O. dis
pute which has shut down the Port
land lumber Industry.
100,000 Mongols
To Aid Chinese
Shanghai. Dec. 31 UP) Chinese
press reports said today that Com
mander Chiang Kuo. son of Oen
erallsslmo Chiang Kai-Shek, had
organised 100,000 Mongolian troops
The reports said a mechanized
vanguard of the Mongolians, with
supporting airplanes, had arrived at
La nohow in Yunnan province pre
paratory to Joining forces with Gen
eral Chu Teh's former communist
army.
at , ....-r , :.--r i n , 2L.
Six Die As Auto Rockets Into A
when their automobile careened
bodies were found in the back part of the car which was wrapped
found some distance away. (Associated Press Photo.)
Suspect Foul Play
In Chaffee Death
Suspicion that George D. Chaffee, 62 found dead in the
city jail early Saturday afternoon, died from other than nat
ural causes, raised itself today following an autopsy last
night. District Attorney Lyle J. Page, after conferring with
Coroner L. E. Barrick, announced today that results would
not be known for several days, but1
that every, angle was being thor
oughly Investigated and that foul
play Is suspected.
Samples of all vital organs have
been sent to a patheologlst at the
state hospital and a complete ana
lysis of the condition of each will
be made.
Chaffee was found on the side
walk on the south side of Ferry
street in the 200 block at 2:45 o'clock
and, according to the report of Of
ficers Paul Nicholson and Keslly,
was "arrested for being drunk and
we had to borrow Harry Scott's
trailer to get him to the station." A
supplementary report, filed Satur
day afternoon after Chaffee's
death, gave the address and more
detail.
Chaffee was treated as an ordln
( Concluded on Pne 9, Column 5)
Japan Adopts
Policy in China
London, Dec. 21 iP) The proposal
that Britain move more warships
"within range of China" was made
in commons today after Prime Min
ister Neville Chamberlain declared
"No attempt has ever been made by
Japan for peaceful settlement" of
her war on China.
Sir Archibald Sinclair, liberal
leader favoring greater British na
val strength In the far east, went
on to urge the British government
to "make it clear to the United
States government that Britain will
stand by them In any effort which
the united States makes to defend
sanctity of the nine power treaty."
He went on to advocate that Bri
tain tell the United States exactly
what contribution the British gov
ernment Is prepared to make to a
common effort "if the United
States takes the lead."
He stressed, however, that If the
nine powers acted to uphold the
treaty, "America would have to
take the lead."
"Those who want to see us work
ing with the United States must not
make the mistake of asking the
United States to come In and de
fend purely British interests." Sir
Archibald said.
''Nevertheless, so long as close
consultation was proceeing between
the two countries, there could be no
misunderstanding In the United
States of our motives."
He added that the United State
would always sympathize with
Ideals of the League and respect
those who defend them.
Windsors to Spend
Holidays at Cannes
Paris, Dec. 21 Ml The Duke
and Duchess of Windsor, smiling
happily, left Paris' freezing weather
today to pass the Christmas holidays
on the sunny Riviera at the vUla of
Mr. and Mrs. Herman Rogers of
New York.
Their luggage, already arrived at
Cannes, Included two turkeys sent
by air from Belgrade to Paris by a
Yugoslavian schoolgirl for their
Christmas dinner.
A small group saw the duke and
duchess off at the Paris railway
station. The duchess wore a brown
ensemble with mink coat. The duke
wore a heavy blue coat wlta a fur
collar.
Tree Death wiped out a gay party of six young National Guardsmen
with sickening force Into a tree 13 miles east of Lodl. Calif. Five of the
Congress Plans
To Quit Tonight
Washington, Dec. 21 (F The
benate passed the administration's
housing bill today.
Washington, Dec. 21 U.R The ad-
ministration drive to complete ac
tion on the housing measure In the
special session collapsed today and
adjournment by nightfall appeared
possible.
While the senate raced toward a
final vote on the bill to stimulate
a private housing boom, members
of both houses Impatient to begin
their Christmas holiday, rebelled
and began a drive to quit work Im
mediately.
Senate Majority Leader Alben W,
Barkley, D., Ky said adjournment
before nightfall was possible.
Batkley explained that the situa
tion In the house. which recessed
until 3:30, appeared to make It lm
possible to complete action on the
bill and adjust differences between
the two chambers before adjourn
ment. As a result, he said, the special
session may end as soon as the sen
ate passes Its housing bill and the
house sends "It to conference. The
house passed its housing measure
last week.
Speaker William B. Bankhead,
supporting Berkley's view, said there
was no intention of holding congress
in session for action on the con
fere nee report.
The sudden revolt, overthrowing
administration plans to hold con
gress in session until Thursday if
necessary to enact housing legisla
tion made it virtually certain that
the special session would end with'
out completing a single item on the
legislative agenda presented by
President Roosevelt.
Anti-Japanese
Pickets Patrol
Astoria, Dec. 21 P) Central La
bor Council pickets carried signs on
Astoria streets yesterday reading:
'Japanese goods unfair to Ameri
can principles. Do not Buy."
Officials said the move orlginat
d here and was not the result of
national orders.
Courts Empowered to
Order Physica I Exams
The state supreme court ruled today that lower court
judges have authority to require persons involved in personal
injury suits be (riven a physical examination. Reversing a
Yamhill county court judgment
awarding 15000 damages to Emma
Carnlne (or Injuries received when
riding at Ocean Lake in an auto
mobile driven by Roscoe 8. Steward,
the court ordered a new trial. The
Judgment was against Steward and
E. N. Ttbbeta. whose car waa In
volved In a collision with the Stew
ard car.
Judge Arlle O. Walker, presiding
In the trial court, refused to grant
the motion of Ttbbeta and Steward
that the plaintiff be required to
have a physical examination by doc
tors appointed by tht court.
Todays opinion was tht first In
Price Three
around the tree. The sixth was
Labor Spying
Uniyersal
Washington, Dee. 31 CU.B The
senate civil liberties committee,
completing Its Inquiry Into indus
trial espionage, reported to con
gress today that labor spying la an
"almost universal practice" In
Amerclan Industry.
The committee, headed by Sena
tor Robert M. LaFollette, (P., Wis.)
said its "known census" revealed
3871 working spies during 1033 to
1B36 and the "census Is far from
complete." The report charged
that one-third of the spies used by
one agency operated as union offi
cials..
On the basis of evidence produc
ed In a series of hearings, the com
mittee said that the known total of
business firms receiving spy serv
ices totals 2500 and "reads like a
Blue Book of American Industry."
The report described labor spies
as follows:
'Spies are members of unions In
name only. Their oath to support
and uphold the union Is meaning
less. They reveal union secrets;
they steal union records, they aid
In blacklisting their own fellows.
78 Killed in
Japanese Fire
Tokyo. Dec. 21 (U.P Seventy-
eight persons were killed today in
a fire which started as they were
watching a news reel of the Chi
nese war, hoping to see their
tr lends or relatives among the Jap
anese troops in action.
There were 500 villagers of Nish-
Imuro, In Wakayama prefecture, In
the primary school to see the film,
They took their children with them
Fire started as the reel was be
ing run. There was a stampede
and hours later firemen had recov
ered bodies of 78 persons. Includ
ing 27 children and 21 women, from
the ruins.
Russia Strengthens
Far East Forces
London, Dec. 21 (U.R) Persistent
reports were heard today that Rus
sia was strengthening her far east
air and sea forces on a large scale.
Latest advices said Russia was
moving part of the Black Sea fleet
to Vladivostok. The battleship Lieu
tenant Schmidt, not listed in the
navy roster, and the armored cruiser
Red Ukraine, accompanied by de
stroyers and 20 submarines, were re
ported to have been ordered from
Sebastopol.
the history of the state that ruler)
on the question.
"If the plaintiff has any objec
tion to being examined by the doc
tor suggested by the defendant." the
high court opinion aald, "the court
should designate some physician of
competent skill, Indifferent between
the parties.
"The refusal of the trial court to
grant defendants motion to require
the plaintiff to submit to a physi
cal examination amounted to aucn
an abuse of discretion as to necessi
tate that the Judgment be rever.-.ed
and the cause remanded for fur
(Concluded on Page It, Column S)
Cents
On Trains and News
Stands Five Cents
Can't Close Eyes
To Events in
Rest of World
London Wires Support
Of President in Dealing
With Foreign Affairs
Washington, Dec. 21 (U.R)
President Roosevelt today In
a telefrram to former Govern
or Alf M. Landon of Kansas
declared the United States re
jects a foreign policy of peace
at any price.
Responding to a telegram
from Landon pledging his
support to the president's for
eign policy, particularly in the
present far eastern crisis.
President Roosevelt said that
while the American people want
peace they have "rejected every
suggestion that ultimate security
can be assured by closing our eyes"
to events taking place In other parts
of the world.
The correspondence between tht
president and the republican candi
date for president In the last na
tional election was made public at
the state department upon Instruc
tions from the White House.
Mr. Roosevelt was at the time
lunching with Secretary of State
Cordell Hull and had just finished
a conference with Chinese Ambas
sador C. T. Wan.
Landon apparently Inspired by
the present tense situation between
Japan and the United States, wired
the president the following mess-
(Concluded on. Pane S, Columa 4J
Teriiel Battle
Rages Furiously
Paris, Dec. 21 (TV-The official
Spanish government "Agence Es
pagne" received a dispatch this
afternoon from Barcelona report
ing the "fall" of Teruel Insurgent
strong point on the extreme south
ern Aragon line where a major bat
tle has been raging for days.
Hendaye, Franco -Spanish Fron
tier, Dec 21 (TV-The Spanish gov
ernment today hurled 20,000 more
men Into the fierce struggle for
strategic Teruel, radio advices said,
and the reinforced army of 80,000
was ordered to take the provincial
capital "at all costs."
This tremendous force and the in
surgent defenders were locked in ft
sanguinary hand-to-hand contest
within the city on the seventh day
of the government's offensive. In
surgent reports said the Teruel gar
rison still was holding out
Thousands of attackers and de
fenders alike were reported to have
fallen. Teruel's radio was silenced
and the city's other communications
were cut off.
Through last night, while the civ
ilian population of the battered
Spanish provincial capital cowered
in underground tunnels awaiting
word of the city's fate, giant field
searchlights Illuminated scattered
battle areas.
The chatter of machine-guns and
the pinging fire of rifles echoed
through the streets.
At times the government attackers
and the stubborn insurgent defend
ers fought hand-to-hand in the nar
row thoroughfares.
Novelties
In the News
(By the Auoclated Preu)
Bomerang
Laurlnburg, N. C Church offi
cials asked police to patrol a dan
gerous curve near the church dur
ing worship; the reason there waa
too much nofee.
The police obliged.
The first speeder stopped was a
preacher: the second, the county
judge; the third, a deacon.
The curve la patrolled no longer.
If at First
Albuquerque, N. M. Last New
Yeara Justice L. M. Tartaglla offer
ed to perform a marriage ceremony
free. There were no takers.
Today, as an added incentive, he
offered also to provide a license fret
to the first couple asking his ser
vices In 1038.
Amateur Dentist
Omaha. Neb. H. H. Elliott of
Omaha says he la through playing
dentist,
(Concluded on Page It, CeJaau II