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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."