A
omrnal
Weather
First in News Photos
With th. Associated Praw
eluslv. Tele-Mat service, th Cspl
Ul Journal la enabled to preaent
photoa of world eventa within
lew houra of their occurrence.
Unsettled tonight and Tuesday
with oecaalonal light rains. UUI
change In temperature. Moderate
southerly winds. Sunday: Max. 48 9,
mln. 40.4. River t feet. Rain 21 In.
Southeast wind. Cloudy.
50th Year, No. 44
Inter ard u Moonrj elaas
matter at Salem, Oregon
Salem, Oregon, Monday, February 21, 1938
Price Three Cents JceST
Fuehrer Jars World with Thii
fW
s o
ar
m OA : A U TT
Anglo-Italian
JUeadoiPGE
Offers Support
To Bonneville
Move for Seven-County
Utility District Consid
ered Unsound
Cooperation by his com
pany with the federal govern
ment in the distribution of
oower from Bonneville was
j pi edged by Franklin T. Grif
fith, president of the Portland
General Electric company, in
an address today before the
Salem Chamber of Commerce,
He was unable to consider as
sound, however, any of the
arguments in favor of crea
tion of the proposed North
west Oregon Bonneville Public util
ity district of which the people of
the greater part of seven counties
are to vote on April 8. The counties
are Clackamas, Washington, Yam
hill, Polk, Columbia, Clatsop and
Lincoln.
"In Its recent Investigation of
rates and rate structures," said Mr.
Griffith, "the federal power com
mission reports that the lowest rates
In the entire country prevail In Ore
gon, Washington and Idaho, and
that Portland Is one of the five cit
ies of America having the lowest
domestic rates. This is a fact of pe-
( Concluded on par 4, column S)
J Seattle Voting,"
On Mayoralty
Seattle, Feb. 31 WV-Seattle'a al
most 900.000 registered voters began
their trek to voting booths this
morning to climax a bitter cam
paign In the city primaries.
Two candidates for mayor will be
named to contest In the March 8
run-off balloting.
Mayor John F. Dore, candidate for
re-election, and Lieut. Gov. Victor
A. Meyers, dapper ex-band leader.
. took the spotlight by exchanging
personal abuse as the campaign
closed.
Dore Is strongly backed by the
powerful A PL Teamsters' union. He
has publicly stated his allegiance to
Dave Beck, northwest Teamsters'
chief.
Matt Meehan, secretary of the
4 CIO Longshoremen's and Ware
housemen's union, spoke In favor of
Meyers. Meyers, a member of the
AFL Musicians' union for 21 years,
has strong CIO support and In ad
dition claims a large bloc of Com
monwealth Federation, Workers' Al
liance and WPA votes. There are
nine candidates for mayor.
In all, thirty men and three wo
men are listed on the ballot for
mayor, councilmen, city comptroller
and treasurer.
How-de-Do!
By Don Upjohn
Sips for Supper
A quiet movement Is being started
to write In the name of Governor
Martin on the ballot In the repub
lican primary and from the number
of republicans who are for him it
might be possible he could grab off
v. both the nominations. A lot worse
J things could hsppen to the state.
Dr. W. B. Morse and Mr. and Mrs.
Pink Patterson who started south
by motor two weeks ago for a va
cation In Death Valley have now
reached a point as close to their
destination as Cotton, Calif., and
don't know yet when they'll get any
farther. Floods, torrential rains and
heavy snows have kept them bottled
up In the Golden State where the
climate Is always supposed to be
summer.
Salem folk who were at Mt. Hood
yesterday had the distinguished
honor of matching ski expertlng
with none other than Oene Tunney.
former heavyweight champion of
the world, but reported by those re
turning as not even a featherweight
ski champion. Little Miss Jeanette
Welder who was essaying her first
attempt at the slipping and sliding
art said she spent a good deal of
time on the same hill as the tremen
dous Mr. Tunney but was on her
tfeet more than he. It seems that
ene was down a number of times
J' (Concluded on pass 10. col a ma I)
Pact
i
4211
I I llawfaP li I mal a aa aWaeeHeHeaweaaeHiiaeMU
Agree On Pact Neville Chamberlain, (left), premier of Qreat
Britain and Dlno Grand! (right), Italian foreign minister.
Eden Tells Reason
For Resigning
London, Feb. 21 (U.R) Capt. Anthony Eden told a crowd
ed, attentive House of Commons today that he had resigned
as foreign secretary because he could not agree that Italy's
attitude makes it advisable to hold a conference on better re
lations between Italy and Britain at present. Eden implied
that he feels Italy and Germany ,
are violating International agree-
ments.
"We are in the presence of the
progressive, deterioration of respect
i or international obUghtlona," he
declared.
Before the house met. Prime Min
ister Neville Chamberlain, who split
with Eden, talked with Ambassador
Dino Grand! of Italy and was un
derstood to have arranged for Im
mediate conversations between the
two countries, In which Britain
would make concessions on Spain
and recognize the Italian conquest
of Ethiopia.
Eden, speaking earnestly and de
liberately, told the house:
"Recent months, recent weeks
and even recent days have seen sue
cesslve violations of International
agreements and attempts to secure
political decisions by forcible means.
"Agreement that are worthwhile
are never made on the basis of
threats."
(Conrlud) onpfln 10, column ft)
FDR Scanning
Hitler Reaction
Hyde Park. N. Y., Feb. 21 WV-
Presldent Roosevelt scanned world
reaction to Adolf Hitler's "iron and
steel" Reichstag address today
he continued study of International
happenings and official reports on
the domestic business situation.
For the most part, though, he de
voted the third of his four-day re
spite from Washington conferences
to rest and the companionship of
the reunited Roosevelt family.
With the temperature down to 30
and several Inches of snow on the
ground, the chief executive, with his
wife and mother, and James Roose
velt and his wife, drove to the fam
ily cottage at Val-Klll yesterday for
lunch and an old-time get-together,
After several hours at the little
white-frame house, they returned to
the larger estate for a vestry meet
ing of old St. James Episcopal
church. The president Is senior war
den and James is a vestryman.
Geiman and Italian
Plans Told by Dodd
Washington, Feb. 21 (U.R) United States foreign policy,
based primarily on low-tariff economies and "good neighbor"
relationships but dominated just now by a big navy defense
program, stanoa uncnangea toaayv
by apectacular Kuropean political
events. Officials do not care to com
ment beyond that on the big diplo
matic week-end.
Reichsfuehrar Adolf Hitler's re
statement of nasi expansion ertma
should not, however, have surprised
the state department In view of re
port understood to have been sub
mitted by William E. Dodd before
he resigned as United States ambas
sador to Oermany.
Dodd's appraisal of Oennan alms
became public today through a
member of the house foreign af
fairs committee before which the
former ambassador to Oermany re
4 Injured in
Fire on Ship
San Francisco, Feb. 21 (P) Four
firemen were injured, one seriously.
when fire swept the forward hold
of the British steamer Silverguava
at pier 23 early today.
The fire fighters were caught un
der heavy sacks of flour when the
vessel suddenly listed from thous
ands of gallons of water poured into
the hold. Lieutenant George Vi
vian suffered a brain concussion.
His condition was reported as seri
ous, but not critical. Raymond
Landinl, Timothy Holland and Roy
Wornell suffered bruises and con
tuslons.
Discovery of the fire was made
by longshoremen unloading the ves
sel. Two alarms sent nearly a
score of fire equipment to the scene,
Including a flreboat
Customs agents were stationed
around the ship during the fire.
The ship's crew included 34 Chin
ese. Gunny sacks, hemp and flour
were destroyed. The flour was load
ed last week at Portland, Ore.
Sllver-Java-Paclflc line officials
said principal damage was to the
hemp and flour, and that the ves
sel would sail for San Pedro, Calif.,
probably Wednesday, after the
damaged cargo was discharged.
Foremen estimated the loss at
about 110.000.
Russia Ignores
Hitler's Harangue
Moscow, Feb. 31 (PI Chancellor
Hitler's momentous speech to the
German Reichstag was completely
ignored In the government controlled
Soviet Press today.
Newspapers failed to even men
tlon It and officials refrained from
comment.
The resignation of Great Brl
tains' foreign secretary, Anthony
Eden, was reported, but without
comment.
-
cently appeared in secret session.
The member, who requested that
his name not be revealed, told the
United Press that Dodd had des
crlbed a plan by which Oermany
and Italy plan to carva out a new
"Holy Roman empire" on the con
Unent and In North Africa.
Dodd la quoted aa having said
that ha aaw maps In Berlin outlin
ing the territories Involved and
purportedly Including the Nether
lands, Switserland. Czechoslovakia
and the Polish corridor for Oer
many In addition to Auatrla. where
Nasi Influence now Is being exert
ed with unprecedented force. Italy
(Caeraded en page II, column 1)
Looms
Negotiations
To be Started
Immediately
Chamberlain Declares
That to Rebuff Italy
Might Mean War
London, Feb. 21 (P) Prime
Minister Neville Chamberlain
tonight won the endorsement
of his own dominant conserv
ative party for his bold aban
donment of Anthony Eden's
foreign policy in favor of his
own approach to accord with
Italy and general appease
ment throughout Europe
which will give us peace.
A largely attended meeting
of conservative members of
both houses of parliament gave un
qualified support to the prime min
ister after he flatly told commons
he was atriklng out on a new path
to avoid war.
The opposition labor party an
nounced, however. It would move a
vote of censure against the govern
ment tomorrow.
London. Feb. 21 (P Prime Minis
ter Neville Chamberlain, In an
amazing verbal struggle with hut
retiring foreign secretary, Anthony
Eden, told a turbulent House of
Commons today that Britain had
agreed to start negotiations for a
new Anglo-Italian . understanding
'Immediately" In Rome. -Chamberlain
declared that for
Britain to rebuff Italy's desires for
such conversations would bring re
lations to a point "at which ulti
mately war between us might be
come Inevitable."
The prime minister accused Eden,
whom critics charged he had sacri
ficed to satisfy Europe's dictators.
of being "unfair," Implying that he
(Chamberlain) had succumbed to
Italian "now or never" threats.
Frequently Interrupted by Jeers
from noisy opposition members, who
(Concluded onpsse 10, column 4)
Anti-Lynching
Filibuster Ends
Washington, Feb. 11 in - The
senate shelved the antl-lynchlng
bill today to take up the $350,000,000
emergency relief appropriation
measure.
The action, taken on a motion by
democratic Leader Barkley of Ken
tucky, ended a filibuster which had
consumed 39 days of this session.
Jubilant southerners who had
fought the measure said they re
garded the senate's action as assur
ance the bill would not be brought
up again this session.
Before the vote, proponents of the
bill, headed by Senator Wagner (D.-
N.Y.), had sought unsuccessfully to
amend the motion so as to provide
for later consideration of the bin.
The relief measure, previously
passed by the house. Is designed to
Increase WPA rolls to a total of 3,
500.000 persons.
In asking that the antl-lynching
bill be laid aside, Barkley explained
that there appeared to him to be no
chance of obtaining unanimous con
sent to limit the antl-lynching de
bate and said he had done "all I
could" to get a vote on it.
He noted, also, that two motions
to Invoke cloture, limiting each sen'
ator's argument to one hour, bad
been defeated.
The vote on laying the bill aside
waa 58 to 33.
Davis Court Unit
Destroyed by Fire .
Turner, Or., Feb. 31 Fire of un
known origin completely destroyed
one of the six units of the Corne
lia Davis court of the Turner Me
morial home shortly after 3 o'clock
this morning. The dwelling, occu
pied by Mr. and Mrs. J. B. Kendall,
was erected about two years ago at a
cost Of 11300.
Mrs. Kendall, who was 111, was
carried from the burning building
and la now at the Turner Memorial
home. Kendall, slightly burned. Is
in a Salem hospital. Both are eld
erly people. No contents were saved
from the building.
Insurance amounted to I860. The
board of trustees of the Memorial
home will meet Tuesday night to
discuss plans for rebuilding.
Middle Road
Policy for
Business Men
State Association Hears
Racketeering Methods
Of Labor Denounced
The task of formulating a
"middle - of - the - road" labor
policy today faced leaders of
the Oregon Merchants' Asso
ciation convention, which
opened this morning at the
Marion hotel with a bitter at
tack launched against alleged
racketeering methods used
by union organizers in this
state.
Spokesmen for the conserv
ative element were working
toward a "fair" statement of policy
In regard to union labor.
Daniel Hay, acting state manager
of the association, called attention
to the fact that labor disputes dally
grow more frequent, more bitter,
therefore more menacing to Indus
trial peace. To deal effectively with
labor problems becomes more Im
portant as It becomes more diffi
cult. To resist the labor movement,
even if It were advisable, la no long
er profitable. Already It Is too deep
ly rooted In our Industrial soil to be
dislodged by hostile efforts to de
nounce and perhaps misrepresent
it will neither check Its progress or
abate Its vigor.
On the other hand, business can
not Justly claim to be virtuous. The
charge of unfair labor practice is
not always wholly unfounded. If
elfish greed may be laid at labor's
door, buslnesa,iBAy feava to accept
(Concluded on page t, column )
Vienna Jews
Fear Program
Vienna, Feb. 31 (U.PJ Panic spread
among Vienna Jews today as nazis
and antl-nazls clashed In front of
the university.
Numerous wealthy Jews made ar
rangements to leave the country,
seeking temporary refuge. Borne
Jewish real estate owners began
hastily trying to sell properties.
Nations of the Danubian basin
alternated between hope and fear
as to their own position under Eu
rope's diplomatic new deal.
The first real clash here between
Nazis and non-nazis was of poten
tially serious character.
At first there were minor fights.
Police sought to disperse the rioters
then outsiders joined nasi students
and girl students joined with boys.
Shouting as they went Into the uni
versity, they took possession and be
gan shouting:
"Jidah, jump the twig! Go hang
yourselves.
"When Jewish blood drips from
our knives everything will go welll"
Police were hard pressed. They
contented themselves, for a time,
with keeping traffic moving and
separating such clashing groups as
they could reach.
Mann Says Austria
Salvation for Hitler
New York, Feb. 31 MV-Dr. Tho
mas Mann, exiled German author.
said today on his arrival from Eur
ope the Nazi victory In Austria
was "salvation" for Reichsfuehrer
Hitler.
"For Hitler, said the Nobel prize
winner. "Austria was the last op
portunity. Austria was the Ethio
pia of Hitler. It was his salva
tion and ha needed the victory at
the time, just as Mussolini needed
the victory In Ethiopia."
As for a comparison of Nazlslm
and communism. Dr. Mann said:
"Both are children of the same
epoch. Nszlslm Is a certain form of
bolshevlsm. It Is pure bolshevtsm
in lis economic relations. The Ger
man capitalists are not happy.
They say that the only difference
between the Soviet union and Ger
many is that 'Russia Is colder. "
Salem Typos Vote
For C. M.Baker
The vote of the Capital Typo
graphical union No. 310. of Salem,
was cast yesterday In favor of C. M.
Baker of San Francisco for the
presidency of the International Ty
pographical union. Baker received
30 votes to four cast for the Incum
bent, Charles P. Howard of Chicago
The vote was taken at a meeting
called st Salem Labor temple.
Schaeffer Held
To Grand Jury
I Former Teamster Official
Battery for Attack on Salem Brewery Pickets
Witness Describes Fracas Implicating Others
After a preliminary hearing in justice court today Leon
ard Schaeffer of Salem, charged with assault and battery in
connection with an attack on pickets at the Salem Brewery
last month, was bound over to the grand jury. His bail was
continued at (500 which he has furnished. The part that A. N.
Banks and Clarence Adams alleged-
ly had In the trouble was told by1
Fred R. Russell.
The arrest of Schaeffer by the
state police was one of the long ser
ies of arrests in Portland, Salem
and other Oregon cities recently in
volving labor war offenses that In
clude assault and battery, window
breaking, truck bombing and arson.
All witnesses In Schaeffer's hear
ing today were callea by the state.
Rudy Butte, who was changing
his picket shift with Albert Lieske
when the trouble started at the
brewery, testuied that Schaeffer
was lirst to approach the picket
line, that he signalled others to
(Concluded on pane 11, column 1)
More Alleged
Goons in Toils
Portland. Ore.. Feb. 31 (U.R) Ar
rest In Eugene of Jack Lyons, or
ganizer for the retail clerks' union,
who has been sought by authorities
for some time for questioning re
garding labor goon activities, high
lighted today's activities In the po
lice war against terrorists.
State police were returning Ly
on nert for questioning.
Also on the goon list today was
Jack Esta brook, secretary of the
warehousemen's union and so-called
"lieutenant" of Al Rosser, team
ster bce held in jail in Dallas on
an arson Indictment.
Police said Estabrook was Impli
cated In confessions of other goons
in at least one bombing In the
1935 beer war. He was booked as a
fugitive from Washington county
end was held wiu.out bail for ques
tioning by the district attorney.
Al Johnson, official of the garage
and service station men's union,
voluntarily surrendered, and was
held for questioning.
Rosser was said to have been
further Implicated In the beer
bombing in 1935 In a confession
assertedly made Sunday at Steven
son, Wash., by Jake Mlnsky, team
ster, held for the attempted bomb
ing of a truck there. Minsky's con
fession, police said, substantiated
one made Saturday by James R.
Scott, business agent of the ware
housemen's union, that all bombings
at that Ume were "ok d" by Ros.
ser before they were committed.
China Protests
Hitler's Remarks
Hankow, Feb. 31 fflV-The Chinese
government strongly protested today
against German recognition of Man
choukuo. the Japanese-dominated
state carved out of China's Manch
urian provinces in 1931-33.
The government especially resent
ed Reichsfuehrer Hitler's remark
that the Chinese were unfitted men
tally to resist any Bolshevist attack
on them and that a Japanese vic
tory in the far east would be better
than a Bolshevist victory-
Re-Indictments for
Salem Mill Fire
Dallas. Feb. 21 Arraigned before Circuit Judge Arlie
G. Walker early this afternoon Al Rosser, Portland, secretary
of the Teamsters' union, and Leslie "Slim" Henry, business
agent for the Salem Building Trades''
council, asked for further time in
which to enter pleas to indictments
returned by the grand jury earlier
In the day. Rosser waa Indicted for
arson and Henry for attempting to
compel a person to Join a labor
union. James E. Baker and Mau
rice Farrell, both charged with
grand larceny, entered pleas of
guilty but no time for passing sen
tence was set by the court pending
physical examination of Farrell.
Dallas. Ore. Feb. 31 The Polk
county grand Jury, re-convened this
morning at the request of District
Attorney Bruce Spauldlng, dismissed
previously reported indictment ag
ainst Leslie L. Henry on arson char
ges growing out of the burning of
the West Salem box factory on No
vember 30 and returned two new In
dictments Involving the three. Ros
ser and Adams are charged Jointly
in a new indictment with arson In
Accused of Assault and
25,000 Flee
Arkansas Floods
Little Rock. Ark., Feb. 31 0J.I
More than 35,000 men, women and
children, routed from their lowland
homes by Icy flood waters, were scat
tered among refugee camps In south
western Arkansas and southeastern
Oklahoma today, many of them ex
posed to cold weather and endan
gered by pneumonia.
Red Cross disaster workers were
rushed from Washington to the
stricken areas of Arkansas, where
5000 families, representing 32,000
persons, were homeless. ,
National guardsmen were out In
Oklahoma directing airplanes, mo
tor boats and ambulances along the
deluged sections of the Arkansas
and Red river bottoms, where other
thousands had been forced to aban
don their homes.
There was a forecast for rain and
snow In southeastern Oklahoma to
day. P. K. Betts. Red Cross director
from St. Louis, was In charge of re
llef work at Idabel, Ok la., where 300
persons were quartered In the na
tional guard armory and health au
thorities were fighting against an
outbreak of pneumonia.
From Washington, the Red Cross
sent Albert Evans and 18 assistants
to Little Rock to organize relief on
a state-wide basis.
U. S. army engineers were direct
ing repair work on the levees below
Newport, Ark., and a company of
militiamen was standing by. The
Stephen-Keel levee gave way 13
miles south of Newport and 35.000
acres were flooded. The Maybe try
levee, protecting the towns of Auv-
ergne, W e 1 d o n and Tupelo, was
threatened by seepage.
Japan Seeks
Mexican Base
Washington, Feb. 31 Members
of the senate and house foreign re
1st ions committees showed Interest
today in reports that the Mexican
government Is contemplating giving
permission for Japan to deepen
and modernize the west coast port
of Mazatlan,
Chairman McReynolds (D-Tenn)
of the house committee said he also
had heard that Japan was nego
tiating for Iron mining rights In
western Mexico.
He said he understood the reports
came from an American business
man living in Mexico. There was no
confirmation, but Representative
Scott (D-Calif) said he had been
told by business men that Japanese
shrimp fishermen already had been
accorded special privileges at Mazat
lan.
At Mexico City, the newspaper Ex
celsior quoted unnamed foreign
sources as saying the negotiations
for harbor improvement were in
progress.
connection with the alleged Incen
diary fire and Henry is charged
with an attempt to compel another,
Fred Rawllngs, to Join a labor or
ganization on October 30 in con
nectlon with the picketing of the
West Salem Box factory'
Under the new indictments Judge
Arlie O. Walker fixed bail for Ros
ser at $100,000 and Adams at $50,
000. the same as they were being
held under.
The original Indictment against
Henry was dismissed for lack of
sufficient evidence to Justify prose
cutlon. Henry's ball was reduced
from 150.000 to $1000 and his at
torneys were making effort to
lalse that amount today.
The Rosser and Adams indict
ments were combined In order to en
able the state to try the charges
against them at one Ume and save
the state the expense of separaf
trials, according to District Atfrw
(Concloded on pace column 4
Hitler Demands
Restoration
01 Colonies
Promises Interference in
Danubian Nations and
Defies World to Stop It
Berlin. Feb. 21 (flV-Chan
cellor Adolf Hitler gave Eu
rope s uneasy capitals no hint
today of his next move as
leader of a rearming Germany
he declared was "entitled to
equal rights" with other
powers.
His momentous Reichstag
speech yesterday demanding
return of colonies Germany .
held before the World war
and threatening possible arm
ed force to protect German minori
ties on the Reich's borders failed to
give the answer.
Europe's burning question, "What
will Hitler do next?" resounded in
foreign capitals with undiminished
menace.
Anxiety grew In Prague, when
Hitler's Indirect reference to Ger
man minorities In Czechoslovakia
was resented at challenging the sov-'
erelgnty of that state, the home of .
some 3.000.000 pro-nazi Germans.
In his three-hour Reichstag ad
dress, der fuehrer touched point
edly on most phases of the Reich's
foreign policy.
He warned bordering nations
with German minorities to quit "in-
( Concluded on pane le, column )
Fuehrer Speech
Warns Czechs
Berlin. Feb. 21 U.R Adolf Hitler's
declaration of Germany's Intent to
protect German minorities In other
countries waa Interpreted In official
circles today as a warning to Cze
choslovakia to guard against any ac
tion which der fuehrer would con
sider a violation of the rights of
minorities.
Although Hitler did not mention
Czechoslovakia he left no doubt of
his Implication, and it Was believed
that he meant that In the future he
will take more positive action If In
his opinion the 3.500,000 Germans
there are mistreated. Czechoslovakia
borders Germany. Much of It lies In
between Germany and Austria.
Official circles professed not to
know whether the pronouncement
presaged new activity by Czechoslo
vaklan Germans. These quarters
said they believed that Individual
cases of Infringement against tht
German minorities would be treated
separately.
Meanwhile Germans awaited over
tures from Oreat Britain that would
break the Increasingly sharp division
between the totalitarian and the
democratic nations of Europe.
Valley Project
Report Completed
Washington, Feb. 21 (Pi Th.
board of army engineers disclosed
today it had completed Its report on
the proposed t55.O0O.00O Willamette
valley. Oregon, flood control project.
It declined however, to discuss the
nature of 'ts findings.
The report will be released by th.
secretary of war In due time," on.
board member explained.
Novelties
In the News
(By th. AttoelitcA Pr,M
Duly Informed
High Point. N. C Thieves who
raided th chicken house of Saul.
Hearndon wanted to break the newi
gently.
They left a big-lettered sign on
the building.
"Your chickens ar. gone.
Bum Steer
Tucson, Ariz. Famed cowboy ar
Ust Jack Van Ryder Is a leading
candidate for the 25 prise aa th.
most tinforunat. performer In th.
La Fiesta De Los Vaquerca rodeo. In
th. team tying contest, he missed
his iteer entirely.
Mail Goes Throuv
Kansas City Special delivery
messenger Donald Proper had Just
(Concluded an page 10, comma 4)