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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Dec. 21, 1938)
C apital jy iMTial Be on the Look-Out When a big news story "brrsks you want the details pronto. Be a constant reader of your home-city newspaper and youll always get the news the day It's fresh. That's Capital Journal service. Weather Cloudy tonight and Thursday, pro bably with showers. Little change in temperature, moderate northwest wind. Tuesday: Max. 90, mln. 3S. Ram .11 In. River -.8 It. South wind. Cloudy, 50th Year, No. 303 Entered as second ltu matter at Salem, Oregon Salem, Oregon, Wednesday, December 21, 1938 Price Three Cents JJSE" Murder Mysteries Figure in tusica Frauds (Rescue Nan Honeyman Failed to Get Griffith's Scalp Defeated Congresswo man Sought Revenge, Desired Patronage Washington, D. C, (Spe cial) The recent visit of Nanny Wood Honeyman, de feated in her contest for re election to congress from the third Oregon district at the November election, to the na tional capital, was in the na ture of a hunting expedition, according to current gossip, which has it that she was "gunning" for E. J. Griffith's job as VVPA administrator for Oregon. The congresswoman's spe cial peeve at Griffith seemingly centers around his refusal to per mit his WPA organization to be mpti in her behalf durine her fall campaign for re-election. After Griffith Reports here are to the effect that Mrs. Honeyman made her first demand for Griffith's scalp direct to President Roosevelt, after wait ing around Washington two weeks for an audience. The president was in Warm Springs and receiving only selected visitors for conferences on state matters of high import, ' The president, so the story goes, referred Mrs. Honeyman and her .complaint to Harry Hopkins, refus- lng to Interfere with the adminis. tratlon of the WPA chief's depart ment. Hopkins turned a deaf ear to the plea. Sought Patronage But Mrs. Honeyman was not through hunting. Stressing the need for realignment and coordination of the new deal forces In Oregon she sought designation as chief patronage dispenser for the admin istration in the old home state. That scheme also flattened out, whether because of Jim Farley's previous pledge to leave Oregon patronage matters in the hands of Congressman Walter Pierce, Na tional Committeeman Howard ! tourette and State Chairman Tier' ney, or because of Mrs. Honeyman's lack of state-wide contacts and ac quaintanceship not being revealed. At last reports Mm Honeyman was still hunting for a Job that would keep her finger In the Ore gon political pie. Await Holman WnMhtntrMn nhxprvpr ar. anx iously awaiting the arrival of Rufus Holman, senator-elect, of whom they have heard many and varied advance reports. Holman Is figuring In current capital political gossip because of his reported attempts to Induce the republican national committee to nH AatiKt Mf tl nnft incurred In the conduct of his campaign Considering that the committee has already put a considerable sum Into the Holman election more than any senatorial candidate in Oregon has ever received before guardians of the committee's war chest are not particularly sympa thetic to Holman's tale of woe, particularly when they are remind ed that during his term of office he will collect $60,000 In pay checks from Uncle Sam In addition to travel mileage and Incidental re muneration. Norwegian Prince To Visit America Washington. Dec. Jl (1 The American public, from coast to coast, will get a chance next spring to see Norwegian royalty for the first time. Crown Prince Olav. S 5-year-old blonde sportsman and statesman In training to be king, will tour the country with his pretty brunette wife. Prtness Martha. The Norwegian legation announ ced today the visit of the royal couple, which begins April M with a stay at Hyde Park with President and Mrs. Roosevelt, will Include a two-month transcontinental Jaunt. Tentative arrangements call for the couple to visit Omaha. Neb., the grand canyon and Boulder dam Los Angelas, 8an Francisco. Port land. Ore.; Tacoma and Seattle, Washington: Yellowstone Park. Romans: Grand Forks and Fargo, V D., and Sioux Falls, 8. D. Shipwrecked Roosevelt to Let Congress Draft His Bills Definite Policy Adopted Which Will Sidetrack Corcoran and Cohen Washington, Dec. 21 (Pi- President Roosevelt was re ported in informed quarters today to have forbidden ad ministrative departments to draft legislation for submis sion to congress. Congressional leaders, ask ing their names be withheld, said the chief executive had advised them he had adopted a "definite policy" of leaving the jobs of bill drafting up to the senate and house committees. The president's forthcoming mes sage to congress, they said, merely will make "affirmative suggestions" for legislation. Corcoran Sidetracked Mr. Roosevelt's decision presum ably would prevent future bill draft ing by such government officials as Thomas Corcoran and Benjamin Cohen, who have been credited with writing much new deal legislation. This practice has been criticized by anti-administration congressmen. There have been other Indica tions the president Intends to re commend only broad principles at this session and let congress work out the details. He told his press conference yesterday such would be the case with expansion of the so cial security program. It also was understood on Capitol Hill he would leave parliamentary strategy on the government reor ganization program to his house and senate leaders. He discussed it yesterday with Representatives Cochran (D-Mo.) and Warren (D- N.C.), who helped handle the le gislation last spring. Warren said afterward that "with out any disparagement to the sen ate," a reorganization program would have been enacted last ses sion If senate sponsors had permit ted its division into four bills .(The senate passed a general measure, but it was shelved In the house.) Another subject which probably will be prominent In congressional debate came before the senate cam paign expenditures committee today, It began preliminary work on a re port expected to recommend, as one of its principal points, con gressional action to keep politics out of relief. Blanket of Snow In Klamath Area Klamath Falls, Dec. 31 (P The first day of winter brought the sea son' first real snowfall here, but & midday sun threatened to melt the two-Inch blanket which cover ed the ground early this morning. Although the storm was reported more severe In mountain areas, all major highways In this vicinity re mained open. Germany Faces Acute Exchange Shortage Berlin, Dec. 21 (IP) Confronted by a erious foreign exchange situation, the nazi concentration of economic Punk, minister of economics, as director of the newly created "cen tral office for Increasing produc tion." During the first 11 months of 1938 Germany had an Import excess of 909.500,000 marks (W3.2OO.O0O). Halting of this drain on foreign exchange reserves Is expected to be Funk's main task. Announcement of the assignment last night seemed to Indicate It was merely a matter of depart mental coordination, but informed business men today told a different story. They asserted Germany's foreign exchange fund now is so low that even when a near relative abroad Is dying authorities withhold the foreign exchange permits necessary for a German to make a last visit. Field Marshal Hermann Wilhelm Goering. director of the four year economic self-sufficiency plan, gave this explanation of Funks new task: 7-;;,'- A ji Sap" ' N fxr Tells of Gun Deal Frederic Wingersky, Boston attorney, Is shown In the state attorney general's office In New York where he swore he drafted, at the behest of F. Donald Coster Philip Musics, a contract for the purchase of rifles by Mc Kesson and Robblns, Inc.. and Standard Oil of England. Associated Press Photo. Chinese Invade Manchoukuo Shanghai, Dec. 21 IP) The Jap anese were reported by foreign sources today to have rushed troops into Manchoukuo to put down dis turbances cause by units of China's eighth route army which had cross ed Into the Japanese -dominated state. Reports from Pelping said from 15 to 20 train loads of Japanese had been crossing the border daily at Shanhalkuan for several days. A Japanese army spokesman, how ever, denied any troops were being sent Into Manchoukuo and said no trouble had been reported anywhere along the border. The Chinese press reported trou ole also was brewing In Formosa where Formosans and Chinese resi dents were opposing Japan's strict war measures. Meanwhile, Chinese reported new victories on the central front and in China where the Japanese were sending troop reinforcement to stamp out guerrilla activities. Breaking the long deadlock on the Canton-Hankow railway, the Chin ese said they had recaptured Mat ang station, nine miles south of Yo chow, gateway to Hunan province, inflicting 900 casualties. They also asserted Chinese guer rillas In Shantung province, north China, had recaptured Changkiu, 30 miles north of Tslnan, destroying two railway stations. Three thousand fresh Japanese troops were said to have arrived at Lin fen, Shansl province, to reinforce units now attempting to pacify southwestern Shansl. regime has effected further power by appointing Walther 'Execution of the four year plan has led to the complete engross ment of German economy and full employment of all workers. "Increase of Qermany's economic power, however, can be achieved by improving Industrial plants, means of production and methods of pro duction, as well as by increasing the working capacity of those en gaged In Germany's economic pro cesses. "Measures necessary for this pur pose need unified, central direc tion." Business men say Funk will try to so coordinate German Industrial processes that a minimum of im ported raw materials will be re quired. Use of substitute materials standardizing of types and replace ment of hand processes by ma chines are expected to be early re sults. Sailors 16 Survivors On Trail to Lituya Bay Clearing Weather En ables Sailors to Travel To Rescue Camp Juneau, Alaska, Dec. 21 (IP) Sixteen weatherbeaten shipwreck survivors and a ship's cat toiled and stumbled over the rocky Cape Fairwea ther beach in clearing weather today toward a rescue party at Lituya bay. The coast guard cutter Hai- da radioed the men last night were eight miles along the way from the scene of the wrecked wooden motorship Patterson, Alaska trading vessel vhich grounded four minutes be fore midnight, December 11. Through the glasses the Halda's officers saw several of the men signal they were "okay," and an other semaphored that he was proudly In charge of the ship's cat. The Haida slowly followed the men s progress along the tortuous beach, and reported the survivors should reach a stretch of Sandy shoreline early today which should speed their march. - A rescue party from the ooast guard cutter Cyane was based at Lituya bay after being bruught there yesterday in two navy planes from Sitka. An officer and three enlisted men established a camp and stored away food and medical supplies. Some of the party may be sent along the beach to meet the approaching seamen. Two survivors, brought here Mon day from the wreck scene by Pilot Sheldon Simmons, left today on a steamer for Seattle after spending a night In a hospital. Two men lost their lives In the Patterson wreck. One was washed overboard trying to launch a life boat. The other drowned trying to cross the speedy current of Sea Otter creek, after having safely reached shore. Long Drought in Dust Bowl Ends Lamar, Colo., Dec. 21 (tP) Long overdue snowfalls which ranged up to seven Inches brightened the win ter crop outlook In the one-time dust country and adjoining areas today. Winter's welcome onslaught erased visions of a return of the vast palls of wind-borne dust that snuffed out winter wheat hopes in he southwes- ern "dust bowl" in 1934-35. The storms covered much of Colo rado, Kansas and Oklahoma and parts of Texas, New Mexico and Art zona. In Arizona, where three months of drought had depleted ser iously the contents of water reser voirs, two days of rain and snow copiously fulfilled prayers for mois ture offered in Mormon churches Sunday. Southern California, meanwhile, was finding relief today from a five day deluge that brought 10.70 Inch ea of rain In the San Fernando sub urb of Los Angeles. Waters of the Los Angeles river began to recede last night after preparations had been made to evacuate 500 persons from homes in the Canoga park section. Trees were uprooted by a 15-mlnute storm at Pasadena last night. Snow ranged up to 10 Inches In the San Bernardino mountains. Net Debt of Oregon $136,406,809 The net debt of the state of Ore gon and all its subdivisions Is $136, 406.809. about 150.000.000 less than the all-time peak of 1930. State Treasurer Rufus C. Holman said today. The figure Is 15, 000 000 less than two years ago. The bonded Indebtedness totals 1156.901.267, while warrant Indebt edness amounts to 118.735.844. the total debt being $175,637,111. How ever, about $39,000,000 In sinking fund assets reduces the net debt to about $136000.000. The bonded Indebtedness has been reduced $61,000,000 In eight years, while warrant Indebtedness has In creased by $6,690,000. Pan-American Dispute Ended By Compromise Declaration Agreed to For Cooperative Action Against Aggression Lima, Peru, Dec. 21 (IP) The principal delegations to the Pan-American conference agreed today on a declaration of cooperative action against aggression, ending a ten-day dispute on wording between the United States and Argen tina. The declaration, highly re liable conference Informants said, provides for consulta tion against aggression, the menace of power, and subversive political propaganda. Argentina won her point. In that European or other non-American nations were not named specifically. The United States attained Its pur pose, however, delegates said. In ob taining a declaration to which all the 21 American republics could sub scribe. Warning Evident Many of the delegates held It was fear of propagandist Incursion by European totalitarian, dictator states which Inspired the resolution In the first place; that even If It did not specifically contain the phrase "ag gression from without" Its warning was evident. . A most reliable source said the United States. Argentine, Brazilian and Peruvian delegation chiefs agreed to a final draft at confer ences lasting until early morning. The Argentine Insistence the de claration be against all aggressors was based on the contention the United States might onle day alter the good neighbor policy and be herself a potential aggressor. Consultation Provided The resolution now awaits the ap proval of home governments and, with the principal dispute settled, likely will be adopted unanimously within a few days, delegation spokes men said. It provides for resistance against any aggression or menace of aggression by force against any American republic. Any of the na tions may start the procedure of consultation. There is provision also, an authori tative informant said, for consulta tion by the nations in the event of undue Interference, with a view to substituting Its own political In stitutions, by unofficial elements having the support of any nation even If done without the appearance of force. The atat concerned In this case, however, must take the Ini tiative in applying the "principle of solidarity." War-time aerial bombardments which destroy non-combatants and cultural treasures were condemned today in a declaration adopted by Pan-American conference com mittee representing the 21 republics of the western hemisphere. Based on a Mexican proposal, the "declaration in defense of hu man rights" said that although ad option of war regulations In the Americas was unnecessary, "Amer ica cannot be Indifferent from a human viewpoint to sufferings of this character." Workers Alliance Stages Sif-Down Eugene. Dee. 11 P Lane county relief offices were prepared today for a relief demonstration by the workers' alliance, announced yeater day by Charles Paddock, chairman of an alliance committee. Paddock declared members, armed with a list of relief cases "demand lng Immediate attention," would move Into the offices and "hold the fort" until the cases were cared for. Relief committee officials said they anticipated no disorder, but had notified city, state and county au thorities. The officers declared they would tolerate no disorder. BUY CHRISTMAS SEALS Wife Visits Music Brother Mrs. Oeorge 8. Dietrich, who said she did not know during the 17 years of her married life that her husband actually was George M us lea, brother of Philip CP. Donald Coster"), Is shown leaving the federal building In New Haven, Conn., with her husband's attorney, Samuel Reich, after visiting her husband. Associated Press Photo. Neediest Need Xmas Cheer The Capital Journal's almost over the top. There dren on the Santa Claus editor's list who have not been cared for as yet but with three days before Christmas, surely kind-hearted persons will volunteer to take these kiddies and make their Christmas the merriest one ever- Public response has been wonder ful. Pood, clothing, bedding and donations of cash have poured Into the Journal office, to be distributed to needy families. If results In the three remaining days before Christ mas eve are as fine It will prac tically guarantee a Jolly holiday for the hundreds of kiddles who have been reported to the Journal's Christmas cheer department. Below are listed a few more fam ilies who truly need help this Christmas time. Fa mil? 41. If there I anrone who would' Ilk to do practical things for Chriilmai hers li a fine thane. Ther la th problem of tuberculous In ttiU family. Plenty of milk la needed to build up the 111 member of the. family and to protect the other member.. The family owna a cow but flnancea have run ao ahort that aome mrani muit be found to feed the aow this month or ela U her. Will anyone help Santa with his problem! Family 41. Where fa the Santa Olaue aide who llkea twini? In thla family there Is a twin brother and sister, aged 4, who are prefn their noses against the win dow pane the evenings trying to set a limpue of Banta Claua looking for their Chriitmaa letters. Two older brothers would Hot mind being remembered either. This la a retiring family who would not auk for assistance but who could cer tainly ue it riant now. Family 41. This family win not aak for assistance, either. They have been reported by neighbors who give them a fin character. The father la a very cam person who la attempting to pay debts and car for bis family on a very small Income. The children are babies, one two years and the other elaht months. A Christmas banket and tors for tha babies would be a grand Idea. Family 44. Misfortune la the form of Illness has perched on this family's door step. There la a tiny Income from which rent la paid. The father, who la truly ill, tries l pick up enough work to buy food. This la a nice family who has never been In such dlra straights before A kindly lift with not a tuestion axked would make Christmas a much happier day for them. The children are ll and years. Family . Last year tha father of this family thought h had a secure lob. The family had a home and their oven pos seitilons. Unemployment earn suddenly and today It Is with difficulty that the rent la paid and food secured. A Christ mas basket and tors would be a cheerful note Id a sad atory for this family. Family 44. Uinta baa again marked this family. The father baa not been able to earn a living for his family for many months. It makes on wonder how the mother feeds her family of six on the tiny Income. There la no complaining here and the family would not aak for extra help but a Christmas dinner and toys and perhaps some clothes for the children, II and rear old girls and and 4 rear 4d bora, would be deeply appreciated. Lightning Shatters Vatican's Windows Vatican City, Dec. 31 JP) Several windows were shattered In the Vatican palace today by a bolt of lightning which struck at a con siderable distance from the pope's apartment. o V o Families Christmas cheer campaign Is are still several dozens of chil Hushed by Job From Musica New York, Dec. 31 VP) Another crony out of the past of Philip Mus ica man who knew the masquer ading super-swindler when he was a World war spy-hunter was held today on a charge of conspiracy In the McKesson and Robins drug mys tery. The arrest of Benjamin Simon, 49- year old Bronx salesman with a po lice record, gave credence to a pre viously reported story of an old friend who met Musica one day when he was still "P. Donald Cos ter," respected president of McKes son and Robblns. "Well, what are you going to do for me?" the man asked when Mu sica told how high he had risen since the days of the infamous human hair swindle of 1913 and the dubious dealings In alcohol during prohibi tion. "Why didn't you know?" Coster replied. "This very minute you be came " and he named a post In McKesson and Robblns. Simon has ben on the corpora' tion's payroll at 16000 a year and ex penses for five years. Assistant U. S. Attorney Brlen McMahon said last night: '1 assume he was drawing $4000 a year for what he knew Instead of what he did." Contact Established With Isle of Perdition Paris, Dec. 21 (U.R) Radio contact with an adventur ous band of French colonists on barren St. Paul's island, close to the outer edge of the Antarctic ice shield, was re established today. Oeorge Mandel, minister of col onies, announced the colonists were running out of food and their sup ply of coal was exhausted. Naval authorities made hasty preparations to rush coal from the nearest naval base, Diego Suarea, on the Island of Madagascar, 3,000 miles away. Radio sopera tors at Antananarivo. Madagascar, established contact with the tiny "cursed island" early today and confirmed the plight of the colonials. Bitter dissension was reported to have broken out among the women In the band. r that the colony hsd been wiped out abated with the report. Reopen Probe Into Slaying Of Two Cohens Prosecutor Says Frauds Involved Narcotics, Rum And Other Rackets New York, Dec. 21 (U.R) Participants in the frauds which mulcted McKesson and Robbins, Inc.. of millions of dollars "went even so far as to commit murder," Assis tant Attorney General Brien McMahon, who is in chargs of the manifold federal in vestigation, asserted today. McMahon said the investi gation into the activities of Philip Musica, swindling ex- convict, who, as P. Donald Coster, masqueraded his way into control of the $86,000,000 dmg firm, had ex tended to murder cases In Brook lyn. "There was something more than a mere business fraud It was fraud involving many other rackets and It Involved Illicit narcotic Impor tations and sales, rum frauds, li quor tax evasions and the partici pants went so far as to even com mit murder," McMahon said. Cohen Murders Simultaneously, Brooklyn pollca reopened the unsolved cases of the slay in gs of Joseph Cohen and Bar ney Cohen, wealthy poultry deal era. Muslca-Coster had arranged perjured testimony against Joseph Cohen at his trial In 1914 for the slaying of Barnett - Baff, poultry racketeer. The Cohen brothers were killed In 1933. Joseph was shot down In the doorway of his home In Platbush, His brother was killed about one month later In Jamaica. Police speculated on the possibil ity that the victims might have threatened to expose Muslca-Coster, who by then was well established In his new role as a respected fi nancier. Was Stoolpigeon Musica-Ooster came m contact with the Cohen brothers In 1911 while he was being held for trial In connection with a human hair swin dle. Subsequently Musica became a stool pigeon for the district attor ney's office and uncovered "evi dence" which was used against Jo seph Cohen. Police Inspector Michael P. Me- Dermott. head of the Brooklyn de tective bureau, announced that he) planned to talk with relatives of the two brothers and may also attempt to question the surviving Musica bra thers. Police said If the Cohens knew that Coster, head of the old relia ble drug firm, was really Musica they would have had strong motives to make use of that Information. Pederal Investigators summoned 30 more officers of McKesson and Robblns, Inc.. today, convinced that some of them must have known something was wrong with the $80, 500.000 drugs firm during the 10 years It was bossed by Philip Mu sica, a swindling ex-convict. The investigation so far had dis closed that although manipulations of the four Musica brothers had cost McKesson and Robblns $21. 000.000, the brothers actually got away with only about $3,000,000, and they apparently lost most of that in Wall Street during the de pression. Very little of value could be found among their possessions, which were all Impounded. (Ton rlii 44 on pact) 11, column Nothing had been heard from tho stranded group since an SOS It had sent out was picked up by an ama teur radio operator in Bremerton, Wash. The last word from the Island was: "Will be grateful If you relay early as possible to Madagascar even through officially we ran short of coal due bad weather. No chance to find coal on Island. Calling Mada gascar. No luck. Hear tentative broadcast at 15 gmt. Would like to have them call us. We will listen for message. Hope Madagascar will send rescue. Hope we can get Tanan arive broadcast to cheer us up. Con firm that we are on S3 He Bourbon, Prom Rene Mourdeaux."
