First in News Photos
With the Associated Praia ex
clusive Tele-Mat aervloa, tba Capi
tal Journal la enabled to present
photoa of world events within a
few hours of their occurrence.
Weather
Fair tonltht and Sunday, foes ea
coast, cooler Sunday. Light variable
wind. Yesterday. Max. 81, mln. 19.
Rain 0. Mr. 1.1 ft. North wind. Clear.
1L "iinnflirr
50th Year, No. 121
Bnteivd m Mcond class
' nutter at Stvlcm, Oregon
Salem, Oregon, Saturday, May 21, 1938
Two Sections 16 Pages
Price Three Cents
On Trains and Newt
Stapda Five Cents
Nominafcioin) of Hess CooceddTby Mairfcoini
Nominate Chadwick, Olson
aJ 1.-
manon tuuniy
Gives Martin
J44 Plurality
Smith Defeats Hewlett
Martin, Steelhammer,
Furher, and Duncan Win
Marion county democrats,
engaged in the most hotly
contested gubernatorial pri
mary ever staged here, gave
Governor Charles H. Martin
a plurality of 144 votes over
his nearest opponent, Henry
Hess, in yesterday's election.
Unofficial complete count
gave:
Martin 3285, Hess 3141,
Oleen 618.
The only other close race
on the democratic ballot was be
tween Bessie Richards and Walter
Shrock for fourth place for atate
representative, with Mrs. Richards
winning out by M votes. The bal
loting for this contest was:
Potts 4081, Llpps 3590, Cooter 3589,
Richards 3442, Shrock 3358.
Democratic Vote
The democratic vote complete for
other contested offices shows: '
United States senator, Mahoney
4351, Donaugh 3369.
Congressman, Burk 4589, Nott
1245, Miller 834.
Superintendent of schools, Put
nam 3859, Leonhardt 307T.
Labor commissioner, Hyde 3072,
i Roth 2483.
" County commissioner. Potter 2780,
KlngweU 1505, Sweaney 1387.
All Incumbent supreme court Jut
(Concluded on page 12, column 4)
Compromise
On Rail Wages
. Washington, May 21 OP Senate
railroad experts said today a com
promise In the wage cut dispute of
fered the only prospect for salvag
ing the emergency railroad aid pro
gram at this session of congress.
J. J. Pelley, president of the Asso
ciation of American Railroads, Indi
cated strongly In a statement yes
terday that the carriers were not
disposed to accept any existing aid
proposals as a substitute for wage
reduction.
Denying the unions' charge of "bad
faith," Pelley asserted that when
negotiations on the wage cut Issue
were broken off recently the labor
representatives "clearly understood
that in the opinion of the railroads
there were no pending proposals
that could be taken as an alterna
tive to a wage reduction."
The railroads have served notice
of their Intention to cut workers'
pay 15 percent, or an estimated
$250,000,000 a year beginning July 1.
The house followed the senate's
lead yesterday by holding up rail
road loan legislation until the senate
reaches a decision. The senate sent
the measure back to the banking
committee Thursday at the request
of Chairman Wagner (D N.Y.) who
aald the committee had approved It
without discussing the wage cut
Issue.
Mexican Troops
Capture City
Ban Luis Potest, Mexico, May 21
w reaerai government cavalrymen
fought their way Into the town of
Rio Verde today In their drive to
crush the private army of General
Satumlno Cedillo.
Federal troops of President Lasaro
Cardenas were said to have re-taken
the town, 60 miles southeast of San
Luis, from rebels.
Twenty-two rebels were reported
killed, 15 wounded and 80 captured.
One federal captain and two pri
vates died In the engagement, which
took place during the night.
Woman Diving
Star Married
Port Lauderdale, Pla.. May 21 TV
Katharine Rawls, swimming and
dlrtng star, waa married Tuesday
to Theodore R. Thompson, an avia
tor. It was disclosed today.
Mrs. W. 4. Rawls. the swimmer's
mother, aald Kathertne told her of
.the marriage by long distance tele
Drone Tuesday night. She had no
' details but believed the ceremony
was parrenucd m Veldosta, Oe and
that the two today went In Colum
bus, Ohio.
Bumper Crop
Of War Fears
Jar World
Increased Friction Be
tween France, Italy, and
Czechoslovakia Clash
(Br Associated Preu)
The world harvested a
bumper crop of war fears on
two continents today.
Europe s troubles pivoted
on increasing friction between
France and Italy, ostensibly
generated by rival interven
tion in the Spanish civil war,
and on fresh outbreaks aris
ing from Czechoslovakia's
nazi problem.
In scattered areas of the
central European democracy
built on the ashea of the World war,
partisans of the Czechoslovak gov
ernment and the followers of Kon-
rad Henleln fought each other with
fists and Insults.
The killing of two Sudetan Ger
mans by Czechoslovak border guards
plied fuel on smouldering hatreds.
Sudeten Nazis
Henleln'a Sudetan nazls. over
whom Adolf Hitler proclaimed a sort
of protectorate, refused to enter dis
cussion with the Praha government
of government overtures for peace
ful compromise of the Henlelntsta'
demands for autonomy. -
Henlein requested a guarantee of
order in the Sudeten German regions
before talking of settlement.
Reminiscent of Hitler's anschluss
march Into Austria, there were re.
ports of German troop movements
along the Caechoslovak frontier.
In Czechoslovak municipal elec
tions starting Sunday, there also waa
a partial parallel to Austria's futile
attempt to hold a plebiscite on whe
ther Austria should remain lnde
pendent.
Oermany said her troop move
ments were only routine maneuvers.
Britain took cognizance of the move-
menta yesterday when her envoy to
Berlin Inquired at the foreign of.
flee.
Reserves Called Out
In turn, the Czechoslovak govern,
ment called up a class of army re
serves but denied this constituted
mobilization for defense. Premier
Milan Hodza, however, had aald
Czechoslovakia was "ready for the
conflicts which await us."
Italian-French differences, which
some have seen as a fascist device
to divert France while Hitler press
ed his central European ambitions,
were heightened by Italian plans
for a military and air demonstra
tion In western Libya, near French
Tunisia, while the French Mediter
ranean fleet maneuvered off the
Tunisian coast.
Deranged Youth
Slays 27 Persons
Okayama, Japan, May 21 UPv A
deranged youth killed 27 persons
with a shotgun and then committed
suicide in a forest today.
Police Identified the killer as
Mutsuo Tot, 32.
The youth, according to police.
leit nis bed during the night and
went through his home town, Ka-
momacm, tilling sleeping men, i
men and children.
$100,000 Project on
North Santiam Sure
Portland, May 21 (IP) W. H. Lynch, district engineer for
the federal bureau of public roads, was advised today the sec
retary of agriculture had approved the forest highway pro
gram in uregon, Washington and
in
Montana.
Projects in Oregon Included
Installation of concrete linlrg for
tunnel through Cascades on Eu-gene-Klamath
Falls highway, $150,-
000.
Seven miles of surfacing and bitu
minous surfacing and grading on
Tiller-Trail highway. 885.000.
Two miles of grading on Santiam
highway, 1175.000.
Seventeen mllea of bituminous
surfacing on North Santiam high
way, 8100.000.
Five miles of grading and bitu
minous surfacing on Klamath Falls
Lakevtew highway, 9100.000.
Grading and surfacing of I mllea
of Fremont highway between Lake-,
(
-A
W. W. Chadwick
Congressmen
Nominated
Portland, Ore., May 21 MP) Ore
gon's non-campaigning congressional
delegation held comfortable leads
over opponents In three district pri
mary elections.
In the first district, James W.
Mott polled 39.790 votes in 566 of 828
precincts to 10,322 for Walter Nor
blad In the republican race.
Walter M. Pierce. La Grande, had
more than twice as many votes as
Wade Crawford, Klamath Falls, in
249 of 415 second district precincts
for the democratic nomination.
Nan Wood Honeyman, Oregon's
first woman representative, drew
attention of 24,91 voters In 375 of
438 third district precincts In the
democratic race. William JPrender
gast, Jr., was second with 6429, to
4909 for Jacob Wagoner. V
Democrats in the first district
gave Andrew C. Burk 13,850 votes in
566 precincts. Earl A. Nott tallied
9794 and W. T. Miller 7068.
Second district republican results
gave U. 8. Balentlne 6446, Bayard
T. Merrill 3483 and Rennle A. Tull
3176 In 249 precincts.
Third district, republicans cast
22,958 for Homer D. Angell and 14,-
251 for Walter L. Tooze in 375 pre
cincta, NLRB Attacks
Circuit Courts
Washington, May 31 m Edwin
S. Smith, a member of the Labor
Relations Board, urged today pub
lic resistance to any attempt by
circuit courta of appeals "to' usurp
the functions specifically given to
the board.
"The public, Including labor,
which Is the principal beneficiary
of the National Labor Relations act,
should be profoundly disturbed at
the recent tendency exhibited In
certain circuit court decisions to
give little or no effect 'to the
board's findings of facts," aald
Smith, addressing a convention of
United Office and Professional
Workera of America, a CIO affili
ate.
At another point in his address,
Smith said:
"Prom the beginning of Its ac
tivities the board has been assailed
as partisan, unfair and arbitrary
by that large section of the daily
press which reflects the viewpoint
of business."
He said a recent magazine article
by Senator Bridges (R. N. H ), was
an illustration of "emotional, high
ly colored and utterly unreliable
propaganda about the board."
view and Lapine, 6120.000.
Reconstruction, grading and bitu
minous surfacing of 4 miles on
Pendleton-John Day highway, 173,
000.
Reconstruction and grading of 2 3
miles of John Day-Bums highway.
6125.000.
Grading of Hi mllea of Flora-En-terprlae
highway, 8100.000.
The 8100.000 construction project
for the North Santiam highway ap
proved for Immediate letting by
Secretary Wallace covers the work
of oil -surfacing the 17 miles of the
road Immediately east of Detroit.
The proposed work includes stand
ard oil mat surfacing to a width
of 30 feet.
Gabriel and
VanWeideron
Wafer Board
Nicholson, Perrine, Lau-
ghlin Marshall, Brown,
Davidson on Council
W. W. Chadwick and Dr. O.
A. Olson were nominated for
mayor of Salem in yester
day's non-partisan city pri
mary election, but, a complete
unofficial count of all 26 city
precincts gives Chadwick a
lead of 1733 over Olson, and
Olson was a bare 13 votes
ahead of the third candidate,
E. C. Goodenough. Since
Chadwick did not get a ma
jority over both opponents he
ana Olson wiu run off the race In
November. Chadwick received 4155
votes, Olson 2422 and Goodenough
2409.
For city water commissioner E.
B. Gabriel, present chairman of the
commission, and Van Welder were
elected, the third In the race being
William Bliven, For this office a
plurality vote elected. Gabriel re
ceived 5080 votes, Welder 5078 and
Bliven 4217, or 861 behind Welder,
The 650,000 sewer bond amend
ment carried easily by a vote of
5674 to 3029, a majority of 3643 for
the bonds.
Councllmen - -
, The warmly-contested aldermanlc
Contests resulted as follows:
For the short two-year term for
Ward 1 unofficial returns show that
James H. Nicholson retains his seat
with the narrow margin of six votes
over Bowman, their totals being 594
for Nicholson and 588 for Bowman,
E. M. Perrine, Incumbent, easily
defeated 8. J. Yates for the four
year term by a vote of 810 to 350.
Professor 8. B. Laughlin of Wil
lamette university unseated L. F.
Le Oarle for the short term for
Ward 2, with a vote of 529 to 474,
a majority of 55 for Laughlin. 81nce
Le Garie holds the office by ap
pointment to fill an unexpired term
Laughlin will take his seat as soon
aa he chooses to swear in. For the
four-year term In that ward Frank
P. Marshall easily retained his seat,
defeating A. A. Geer by a vote of
558 to 404, a majority of 154.
Other Results
For the four year term for Ward
3 Lawrence N. Brown handily beat
Ralph H. Kletzing 520 to 206, a ma
jority of 315 for the seat that C. O,
Daue holds by councllmanlc appoint
ment to fill a vacancy, and Brown
will take the seat Immediately.
For Ward 4 veteran alderman W
D. Evans was unseated by A, O. Da
vidson, but since Evans holds the
office by election he will fill out the
term. Davidson received 605 votes
to Evans' 471, a majority of 34.
In Ward 6 Glenn Gregg unseated
Alderman Fred A. Williams and de
feated W. W. McKinney with
enough votes to give him an elec
tlon, making It unnecessary for a
run-oft In the fall. Williams will
complete the term. Gregg received
844 votes. Williams 394 and Mc
Kinney 284. Gregg's margin over
Williams being 450.
French Elected
For the two-year term in Ward 7
C. F. French defeated Dr. W. A.
Johnson, incumbent, 715 to 498. a
majority of 217. and will take office
at once since Johnson Is filling an
unexpired term by councllmanlc ap
pointment.
In Ward 7 Willis Clark was un
opposed for the four-year term and
will succeed Merrill D. Ohling when
the latter retires at the end of the
year. David OUars was unopposed
for re-election In Ward 6.
A check of the vote by precincts
shows that for mayor Chadwick car
ried 22 out of 26 precincts. Good-
enough carried precincts 4, 6, 14 and
26. Olson did not carry any precinct
although he had a small margin of
13 over Goodenough.
For water commissioners Gabriel
carried nine precincts snd Welder
eight, and the two tied In precinct
16. Bliven, the defeated candidate
carried eight precincts, 4, 6, 7, 6, 14,
21, 22 and 26.
Committee to
Control Mosquitoes
Portland, May 21 JPt A mosquito
control committee composed of rep
resentatives of civic organizations
aought today to raise 84000 through
private subscription to reduce the
number of insect pests In the Port
land area this summer.
Walker Wins
Over Lafky in
Polk County
Harry 'Stone Defeats
Henrietta Martin
Hough Leading Himes
Dallas. Or.. Mav 21 Cir
cuit Judge Arlie Walker held
an approximate lead of four
to one over his oDDonent. Her
man Lafky, Salem, in com
nlete unofficial returns from
35 Polk county precincts and
xamnui county, waiicer poll
ed 7746 votes against 2110
for Lafky. While Walker's
strength was in his home
county of Yamhill, where the
vote was 4899 to 1046, he led
Lafky better than two to one In
Polk county, the vot ebeing 3847 to
1064.
Harry Stone, Jr., of Monmouth,
defeated Henrietta Martin, West
Salem, 741 to 534 for the democrat
ic nomination. Lyle Thomas, West
Salem, was unopposed for the re
publican nomination. There will be
a three-corner race at the general
election in the fan aa Mrs. Joe
Rogers, Sr., of the Independence
district, has completed petitions
and will run as an independent.
Hough In Lead
For county commissioner, Hough
held a narrow lead over Hlmes, the
vote being 1083 to 1047.
The 33 complete Polk county pre
cincts, for state officers, gave:
Democratic:
' u. 3. Senator Dontugh 84; Ma
honey 916.
Congress Burk 685; Miller 182;
Nott 584.
Governor Hess 617; Martin 783;
Oleen 191.
Superintendent of Public Instruc
tion Leonhardt 408; Putnam 945.
Labor Commissioner Hyde 795;
Roth 486.
Republican Count
U. 8. Senator Barry 792; Ireland
538; Weed 714.
U. S. Senator Holman 1719;
Stanfleld 665.
Congress Mott 1958; Norblad 442.
Governor Brown 649; Hansen
506; Hendricks 46; Morton 66; Paine
111; Shrock 30; Sprague 1134; Wag
oner 299.
Labor Commissioner Graham
676; Gram 1421.
Supreme court:
Position No. 1 Bean 1461; Coch
ran 122; Hewitt 1059; McCulloch
393; Zimmerman 736.
Position No. 3 Bailey 2281; Mar.
tin 1229.
Position No. 5 Chlnnock 316
Lusk 1694; Van Winkle 1710.
Rufus Holman
Thanks Voters
Portland, May 21 (P Rufus C
Holman, state treasurer. Issued the
following statement today on his
contest with Robert N. Stanfleld for
the republican nomination to the
regular term of the United States
senate:
"From motives of consideration of
my worthy opponent and respect for
the good republicans who voted for
him, I prefer to make no extended
comments about yesterday's primary
election until all returns are In, oth
er than to thank all those who sup
ported my candidacy for the senate
and to assure all citizens that It Is
my sole purpose to protect and de
fend their rights and to promote
their best interests."
Thomas Files Suit
For Ejection
Newark, N. J., May 21 ISP) Nor
man Thomas, socialist leader filed
suit In federal court today for 85000
damages from each of four Jersey
Ctly police officials, who ejected
him from the city when he at
tempted to apeak there April 30.
The ault charged the police "with
force of arms did assault the plain
tiff, aelaed and pulled hint and
compelled him to go with them to
a ferry slip and board a ferry boat
lor Mannattan."
Thomaa charged also Interference
with his liberties as an American
citizen, aaylng he waa not privileged
to go where he pleased, although
ne was not arrested.
The suit named as defendants
Public Safety Director Daniel J.
Casey, Police Chief Harry Walsh.
Deputy Chief John J. Underwood
sad Inspector Hanry Oauthlar,
l.
Governor Charles H. Martin, left, who concedes his defeat by
Henry L. Hess of La Grande for the nomination by the democrats.
The governor states: "I am grateful to my loyal friends who sup
ported me In the Democratic primaries. Results of the vote have
not changed my convictions In any way, nor' my desire to be of
service to the people of this state. On the face of the returns, I
congratulate Mr. Hess on his success."
It Means
Declares
Paris, May 21 (U.R) If Germany crosses the Czech fron
tier, it will mean war, and France will meet her treaty obli
gations to help Czechoslovakia
sion, an authorized statement accredited to a government
spokesman said tonight. The statement was issued after a
long conference at the foreign of-si
nce by Foreign Minister George
Bonnet with the Czech minister
and the British and Soviet ambas
sadorsboth of the latter countries
being tied by treaty to the protec
tion of Czechoslovakia against ag
gression. The statement reiterated that
France will observe her treaty ob
ligations toward Czechoslovakia In
the event of aggression. The
spokesman said:- '
"France sincerely hopes that the
Czech minority problem can be set
tled In a friendly manner. France
has observed the utmost prudence
and has urged Czechoslovakia to
give the most possible satisfaction
to the Sudeten Germans within the
framework of the Czech state, but
if Germany crosses the Czech fron
tier, that will automatically aet off
war."
PlanstoStart
Naval Buildina
Washington,. May 21 (U.B Presi
dent Roosevelt proposed today that
construction begin at once on his
billion dollar naval expansion pro
gram. Four days after he had signed the
bill to give the United States Its most
powerful navy In history, he asked
the house appropriations committee
to include In the last deficiency bill
for the fiscal year 1939 the sum of
(23.876.500 for construction of ships
and aircraft authorized by the ex
pansion bill.
When granted, the appropriation
will send the national defense bud
get for this year over 81.100,000,000.
Despite the opposition of high na
val officials, Mr. Roosevelt requested
8500,000 to start construction of a
new dirigible, thus returning the
United States to the llghter-Uian-alr
field.
Of the total appropriation, 616.
500.000 would be earmarked to start
construction of one 20.000-ton air
plane carrier, two light cruisers, one
destroyer tender, one large aeaplanr
tender, two amall seaplane tenders,
two oil tankers, one mine layer and
two fleet tugs. Part of this also
would be used for experlmentaUon
with light surface craft, or "mos
qulto" vessels.
Mr. Roosevelt also asked for 13.
375.000 to purchase nine four-engine
rasilml tilnM.
Japanese Plan
Drive on Hankow
With the Japanese Armies On the Central China Front,
May 21 (IP) General Shunroku Hata, commander of Japa
nese armies reported to have surrounded several hundred
thousand Chinese on the central
front, announced today: "We In
tend to go to Hankow."
The 57-year old militarist, speak
lnt succinctly of Japan'a plan to at
tempt capture of Chlna'a temporary
capital, Indicated that the battle of
Suchow waa no more than a prelim
inary phase of the campaign to
come, part of the Immediate plan
to occupy completely the Lunghal
railway which runs from the coast
more than (00 mllea west, through
Suchow, Into the heart of China.
"everything la progressing satis
factorily." Hata said. In outward
appearance and manner h seemed
more a college professor than the
strategist who had closed a trap on
aa enemy fore estimated at 40 di
War
France
if she is the victim of aggres
Germans Close
Czech Border
By Edward W. BeaUle
fCopyricht IMS br Onltwi Press)
Zlnnwald, German-Czech border,
Mav 31 (U.R) The border between
'Germany and Chechoslovakia was
cloned to xravelers tonight.
The writer, arriving by automobile
from Berlin at this frontier town
south of Dresden, waa halted by
German border patrol.
It would be useless to continue be
cause "the Czechos have erected bar
ricades two kilometers farther on,"
the patrol said.
Customs officials refused firmly,
although courteously, to open the
frontier gates, even for foreigners or
a newspaperman bent on reporting
developments on the other side of
the border.
"We know that the Czechs will not
let you through when you reach the
barricades," they said. 'They erect
ed barricades this afternoon and said
something about maintaining them
for a fortnight.
"We don't know just what sort
of trouble they expect."
Borderland peasants, traditionally
entitled to border passage privileges
without papers, returned disappoin
ted from the Czech side. When they
reached the German watch post
through a dense mist, they reported
"much excitement" on the other
side.
The peasants spread rumors among
the Saxon farmers already excited
by today's events In Czechoslovakia
that in some border districts more
than one class or reserves had been
called to the colors for policing.
All along the Saxon border, every,
thing was quiet. German garrisons,
contrary to reports abroad, were
pursuing their dally activities and
dutifully polishing rifles and belts.
CIO Union Man
Held as Fugitive
Hood River, May 31 W Hood
River county authorities were ad
vised Stanley Brown, former secre
tary of the CIO Sawmill Workers'
union local at Dee, was held In Se
attle as a fugitive from Oregon
Brown was sought here on charges
I of check forgery and withdrawing
' nnlftn f imrlai v
visions a trap from which the only
escape seemed to be surrender or
annihilation.
He smiled when asked about the
strength of the Chinese.
"It Is not a matter of Chinese re
sistance, everything considered," he
said, "but of superior strategy and
the rapidity of the Japanese ad
vance.
He laughed loudly and parried a
question aa to whether the capture
of Canton, the South China me
tropolis, would be more Important
than seizure of Hankow, the deep
Inland capital of the Chinese gov,
omment.
"It Is a politics! question," he
said, "1 know nothing of politics."
Governor
Nosed Out in
Close Contest
Majority Around 4000
Mahoney Wins Senate
Race Sprague Victor
Portland, Ore., May 21 (IP)
Gov. Charles H. Martin,
who brought to the executive
chair of Oregon a personality
that wrote deeply into the
state's history, lost his seat
today, vanquished by Henry
L. Hess, 26 years his junior,
after a political battle which
made timbered Oregon a na
tion's stage.
The 74-year-old democratic
governor, who retired from a
brilliant army career a decade ago
as a major general to carve a sec
ond and even more spectacular Ufa
as a politician, went .down to de
feat In Oregon's primary election
after as thunderous a battle as this
state has ever seen.
When the white-crested old war
rior with a heart scarred by a hun
dred battles saw his lead last night.
In which he overtook Hess, melt as
the hours grew on and finally re
verse to bubble up a lead for his
opponent of 3890 votes with only
332 of Oregon's small precincts
missing, he gave Hess the victory
nod.
Martin Stands-Pat
Thus came to an end a campaign
which, through Martln'a vigorous
entry into the northwest's labor
troubles and his resulting barrage
upon certain Roosevelt functions
and .functionaries, drew. a, number,
one billing on the nation's political
stage.
The vote on which Martin sur
rendered wss 49,046 votes for the 48
year old La Grande attorney to 45,-
156 for himself In 1349 of the
state's 1881 precincts. This threw
the baldlsh former state senator
and comparative unknown In many
parts of Oregon Into the November-general
election against the
former school teacher, Charles A.
Sprague, who Is editor of the capi
tals morning newspaper, the Salem
Statesman.
To the last, the old warrior was
adamant, aaylng that the results
had in no way "changed my con
victions nor my desire to be
of service to the people of this
(Conrluded on pate 1Z, column 1)
Justices Lead
For Re-election
Portland, May 31 VP) The noon
tabulation gave:
Complete returns from 964 of the
1681 precincts In Oregon:
Non-partisan Judiciary. State su
preme court, position 3 J. O. Bailey
90.309, B. S. Martin 35,513.
State supreme court, position ft
James T. Chlnnock 19.781, Hall S.
Lusk 65.323, I. H. VanWinkle 48.835.
Complete returns from 983 of the
1681 precincts:
8tate supreme court, position 3
Henry J. Bean 53,374; Oeorge T.
Cochran 10,259; Roy R. Hewitt 23,
063; John W. McCulloch 23,472;
Howard K. Zimmerman 27,834.
Chinese Holding
Key Positions
Hankow, China, May 21 Wh-The
Chinese high command today aald
Chinese forces retreating from fall
en Suchow still held key positions
on the Tlentsln-Pukow railway to
prevent consolidation of Japan's
lines from Nanking to Tientsin.
In addition the Chinese declared
their positions would prevent Jap
snese organisation for a drive west
ward to Hankow, the temporary
Chinese capital, believed to be Ja
pan's next major goal.
Civil branches of the government
went about their business apparent
ly unperturbed by loss of Suchow,
vital rail Junction where main
east-west and north-eouth Unas
cross.
Peoples Utility
District Beaten
Albany. May 21 Unofficial re
turns on the people's utility district
measure In Linn county Indicate)
that It has been defeated by ap
proximately 900 votes.
Albany gave a substantial major
ity against It while Lebanon voted.
In the negative by a amall majority.
It Is the second time that such a
measure has been repudiated al the
pom n this aount