A
G apital AJomraal
Journal Food Pages
The Capital Journal boasts of It
food page filled with tstd re
cipes, suggestions for parties, hlnta
to housewives. Illustrations and new
wrinkles in cookery.
Weather
Cloudy tonight and Frldar: MB.
ehanga In temperature. Moderaw
northwest wind. Wednesday: Mas,
it. mln. M. Ratn .01 In. River -.1 ft,
South wind. Cloudy,
50th Year, No. 304
Entered u second -Im
matter at Salem, Oregon
Salem, Oregon, Thursday, December 22, 1938
Price Three Cents
On Train and New
Standi Fir Oente
nwn o a -
Coster-Musica Suicide Note Made Public
US Apology Refused
Cooperation by
Americas Hangs
In Balance
Defiant Argentine Holds
Up Agreement in Lima
Conference
Lima, Peru, Dec. 22 (P)
The issue of cooperative de
fense for the Americas hung
in the balance today between
a defiant Argentine declara
tion thrown dramatically be
fore the Pan-American con
ference and a second declara
tion to which the United
States and most of the other
countries agreed.
United States Secretary of
State Cordell Hull arrived ear
ly at the conference hall and con
ferred with Dr. Carlos Concha of
Peru, conference chairman, and Af-
ranlo Mello Franco, Brazilian dele
gation chief. In an endeavor to
break the deadlock.
From Dr. Isidoro Ruiz Moreno,
chairman of the Argentine delega
tion, the other three leaders de
manded official and exact informa
tion about the Argentine position in
the light of a telegram he received
yesterday from Buenos Aires.
The new Impasse developed when
the Argentine delegation withdraw
unofficial endorsement of the ma
jority declaration and presented its
own resolution upon instructions
from Its government.
Franco Still Hopeful
The Argentines held the majority
draft to be In effect a military
alliance, which the delegation op
posed from the start of the confer
tnce.
Indications continued that If Ar
gentina refused to alter her posi
tion, the other 20 republics might
act without her. This, however,
would be an extreme procedure
and, delegates said, hardly desir
able In the interests of Pan-American
tranquility.
Despite the startling step by Ar
gentina In publishing her project
without submitting it officially to
the conference, the Brazilian delega
tion chief, Afranio Mello Franco,
Indicated he still hoped for a set
tlement.
These hopes apparently were bas
ed on diplomatic urging- in Buenos
Aires by the Brazilian and possibly
other governments that Argentina
adopt a more conciliatory attitude,
There were conferences here until
early morning. United States Sec
retary Hull, Dr. Carlos Concha of
Peru, conference chairman, and
Mello Franco talked In Hull's apart
ment Later Concha, Mello Franco
and the Uruguayan delegate, Pedro
Manlnl Rios, conferred.
Argentina Suspicious
Delegates pointed out there were
several appreciable differences be
tween the Argentine text and the
Mello Franco-Concha -Hull declara
tion.
Argentina specified aggression
both from within and from without
the continents, but put within the
continent first. This was an in
dication, the conference spokesmen
said, of her continued suspicion that
the United States might one day
end the good neighbor policy.
The Argentine text omitted In
tention of the Pan-American na
tions to provide for their own de
fense, as contained In the majority
text.
The majority resolution contained
two classifications of aggression,
direct and Indirect.
The general comment on the texts
was that under the majority declar
ation continental defense tended to
be more a common task, whereas
under the Argentine declaration It
tended to be Individual.
British Bomber
Approved by Pilol
Los Angeles, Dec. 22 OP) The
first of 300 bombing planes, being
built it the Lockheed factory here
for Great Britain at a cost of 21.
000 000. had the approval today of
Its test pilot.
Squadron Leader James Addanu.
of the British air ministry, said he
was well pleased with the first
ship after putting it through Its
paces. It Is powered with two en
gines of more than 1000 horsepow
er, weighs more than 17.000 pounds.
nd is designed for a top speed
of 300 miles an hour. ,
Franco Stages
Great Spy Hunt
Among Forces
Over 1000 Arrests Among
Nationalists as Result of
"Dirty Shirt" Case
London, Dec. 22 (P) Offi
cial reports reaching; London
today asserted "approximate
ly 1,000" arrests had occurred
in insurgent Spain in a great
spy hunt which authoritative
persons here suggested might
affect the entire course of the
Spanish civil war.
The arrests were the sequel
of what the London inform
ants called the "case of the
dirty shirt."
The shirt In question was found
in the baggage of Harold Goodman,
British vice-consul at San Sebas
tian, when he was stopped at Irun,
on the French border, last Monday.
Inside it was "incriminating Infor
mation" which led to the arrests.
Dirty Shirt Case
An official statement from the
insurgent foreign ministry at Bur
gos said documents found In Good
man's valise when he reached the
border en route to France were
"designed to Inform the enemies of
Nationalist (insurgent) Spain about
our future military operations."
For weeks reports from both sides
in Spain have told of great Insurgent
preparations for a major offensive
by which It was said General Franco
hoped to end the war. The offensive
has been unaccountably delayed,
although bad weather has been cited
as an explanation.
The Burgos foreign ministry said
preliminary Inquiries disclosed the
existence of "a vast organization
to communicate with the enemy."
It added British authorities were
giving the Burgos government all
possible assistance In the Investi
gation. The statement charged insurgent
military police had also found In
the valise "a certain quantity of
Spanish money which "had not been
declared."
London Informants here said
Goodman had been absolved of guilt
In the affair, but that several em
loyes of British consulates in Insur
gent territory were "under suspicion."
Several Spanish Nationals are em
ployed in British consular offices
In Spain, but it was not known here
whether all those arrested were
Spanish.
Mrs. Honeyman
Urged for Position
Seattle. Dec. 22 ) Nan Wood
Honeyman, Portland, defeated dem
ocratic congresswoman from Oregon,
was recommended for a position on
the federal communications com
mission by the executive board of
the Washington Commonwealth Federation.
State Troopers Hunt
For Killer Fiend
Tunkhannock, Pa., Dec. 22 (IP) A half a hundred state
troopers were called into a search of this isolated, snow-cov
ered countryside today for the
tive, 19-year-old Margaret Martin
and attempted to conceal her nude,
battered body In a creek.
Investigators expressed belief the
slaver either was a sex maniac with
a cruel, distorted mind or round
up man for a white slave ring, who
killed the girl when he feared he
would be caught.
8lashed and mutilated, the body
of the brown-haired business school
graduate was found yesterday In a
burlap bag, partially submerged In
three feet of water under an aban
doned bridge.
A naked hand, protruding from
the crudely sewn sack, caught the
attention of a young trapper as he
wandered along the stream setting
traps.
The discovery ended a search that
had been made through all north
eastern states since the girl left her
home In Kingston, 30 miles away.
last Saturday to keep a daylight
street corner appointment with a
man who had telephoned her an of
fer of a Job. I
Duchess of Atholl
Duchess Loses
Test Election
Crieff, Scotland. Dec. 22 (At The
Duchess of Atholl, who rebelled
against Prime Minister Chamber
lain's foreign policy, was beaten by
1313 votes in the parliamentary by
election she forced to test the Issue,
complete returns showed today.
The "Red Duchess," so-called be
cause of her support of the Spanish
government cause, in yesterday's
voting received 10.495 votes to 11.808
for William McNair Snadden, her
conservative opponent, who cam
paigned as a hearty supporter of
Chamberlain's policy of apeasement.
The wealthy duchess ran as an
independent after resigning her seat
In the house of commons, in which
she had represented the Kinross
and West Perth division for 15 years.
Her conservative Highland consti
tuents turned against her after she
had broken formally with the prime
minister's party after his Munich
accord with the dictators for the
partition of Czechoslovakia,
Confesses to
Slaying Wife
Los Angeles. Dee. 22 (F A re
enactment of the gruesome hatchet
slaying of motherly Rose Spine Ill-
confessed, police said, by her Job
less bootblack husband was plan
ned today at the home where her
dismembered body was burned last
week.
Detective Capt. Hubert J. Wallis
announced William Spinelll, frail
middle-aged father of five children,
broke under hours of questioning
and confessed killing his wife.
Confronted with teeth and pieces
of bone from the Incinerated body,
Spinelll admitted committing the
homicide as a result of his wife's
threat to leave him, Wallis said,
The diminutive, wrinkle-faced
suspect had been openly accused
by his son, William, Jr., IB. taken
into custody with him after a
daughter, Helen, reported to police
her mother disappeared December
12.
Another son, Joseph, 20, CCC en-
rollee at a camp near Bakersfleld,
Calif., returned to the city yesterday
to spend Christmas with the fam
ily, only to be informed on arrival
of Mrs. Spinellis slaying.
slayer who strangled attrac
Coroner Ray W. Greenwood said
Miss Martin "definitely was mur
dered." An autopsy performed last
night by Dr. O. O. Guyler, of
Wtlkesbarre. and A. B. Davenport,
of Tunkhannock, disclosed, they
said, death resulted from strangula
tion.
The girl had been slashed across
the abdomen and bruised. Her body
was bound with a clothesline, with
both legs Jammed under the chin.
Fingerprints were found on her
neck, the physicians said, and these
and the clotheslines were checked
for possible clues.
The girl's mother, Mrs. John Mar
tin, near collapse under the strain
of anxiety over her daughter's dis
appearance, was among those who
identified the body. Later she said:
"We would rather know she Is
dead than believe she was In the
hands of white slavers."
Miss Martin's father Is a mine
foreman and minor political figure
at Kingston. The family is In mod
est circumstances.
Nazism
Berlin Protests
Ickes Speech
On Dictators
Welles Says Request Im
proper as Secretary Voic
ed Opinion of Americans
Washington, Dec. 22 (P)
Sumner Welles, acting secre
tary of state, disclosed today
the United States had reject
ed Germany's demand for an
official apology for Secretary
Ickes' speech in Cleveland last
Sunday attacking dictator
ships. Welles told Dr. Hans Thom-
sen, the German charge d'af
faires, the request came with
singularly ill grace and im
propriety from a government which
had so persistently permitted Its
controlled press and officials to at
tack American leaders Including
Presidents Wilson and Roosevelt
and present members of the cab
inet. Americans Shocked
The acting secretary of state ad
vised Thomson Ickes' remarks rep
resented the feeling of an over
whelming majority of the American
people who had been profoundly
shocked by recent event In Ger
many.
Welles' statement to the German
envoy was couched In strong and
uncompromising terms which the
United States rarely uses in diplo
matic discussions with a friendly
government.
He told Thomsen the German
government must now surely know
the recent policy pursued in Ger
many had shocked and confounded
public opinion in the United States
more profoundly than anything that
had taken place In many decades.
Welles warned Thomsen expressions
of public indignation such as Ickes'
were Inevitable.
What Ickes Said
Ickes had said Germany's treat
ment of Jews carried that nation
back to "a period of history when
man was unlettered, benighted and
bestial." The interior secretary also
criticized acceptance of German de
corations by Henry Ford and Char
les A. Lindbergh.
Welles said in talking to Thomsen
this criticism of Ford and Lind
bergh was a purely domestic ques
tion In which Germany could have
no concern whatever and which he
would not discuss.
And, Welles added, so long as at
tacks against American officials
continued tn Germany the German
government had no right to suppose
attacks of the same character would
not continue in the United States.
New Sharp Strain
The exchange brought an extre
mely sharp new strain on German
American relations already tense
from the recent withdrawal of am
bassadors of both countries and
Germany's response to increasingly
insistent recent American notes.
The state department considered
the latter unsatisfactory.
Thomsen had told Welles he
trusted the government of the
United States would make public an
official expression of regret for
Ieke' statement. This Welles flatly
refused to do.
Japanese Ships
Join Rate Pool
Washington. Dec. 22 UP Two Jap
anese steamship companies ended
the threat of a destructive shipping
rate war today by agreeing unex
pectedly to join the Pacific coast
river Plate river-Rrazil conference
and abiding by conference rates on
Brazil coffee shipments to Cali
fornia and the northwest.
The two lines Osaka Syosen
Kaubsike Kaisya and Yamashita
Klsen KabushikJ capitulated ab
ruptly during a maritime commis
sion investigation of charges they
were using unfair trade practices
designed to create chaotic conditions
in the trade.
Representatives of both told the
commission they would make appli
cation immediately for admission to
the conference.
City Manager Named
Hillsboro. Dec. 22 (Jft3. W. Bar
ney, recently resigned as Washing
ton county engineer and road mas
ter, has been appointed city man
ager at Hillsboro,
luncipuiiiid
Oust Foreigners
Prince Konoye Announ
ces Program to Abolish
Concessions
Tokyo. Dec. 22 (TP) Pre
mier Prince Fumimaro Kon
oye declared today that Japan
was prepared to help China
abolish the foreign conces
sions and extra-territoriality,
the system of special privileg
es enjoyed by some foreigners
in China for nearly a century.
In a formal statement on
the future of Japanese-Chinese
relations the premier
concluded:
"Japan not only respects the sov
ereignty of China but la prepared
to give positive consideration to the
question of the abolition of extra
territoriality and of concessions and
settlements, matters which are ne
cessary for the full independence of
China."
Japanese Protectorate
By China the premier manifestly
referred to the state Japan already
has announced she expects to emerge
from her current conquests, linked
In a strong political, economic and
cultural bloc with Japan and her
protectorate, Manchoukuo.
Such a state, under Japanese di
rection, Is expected by Japanese
leaders to replace the Chinese gov
ernment of Generalissimo Chiang
Kai-Shek, which now has Its capital
at Chungking.
Konoye's statement was believed
to embody decision reached in No
vember by the Imperial conference,
super-government organ for prose
cution of the China war, meeting in
the presence of Emperor Hlrohlto.
Konoye's statement coincided with
a strong press campaign for aboli
tion of foreign concessions, Includ
ing even the retrocession of Bri
tain's colony of Hong Kong to the
China of the "new order" of Japan's
plans.
The statement reiterated the gov
ernment announcement of Novem
ber S that Japan proposed to form
a Ja pen-China-Man choukuo bloc
"for common defense against com
muntsm and for economic coopera
tion.' Italy Awaiting
French Reply
Rome, Dec. 22 (VP) Italy waited
today for France to offer conces
sions after giving notice the fascist
government considers invalid the
1935 Mussolini-Laval convention
concerning Tunisia.
The authoritative fascist editor,
Virginlo Gayda, warned the French
that Rome would meet "with equal
arguments and equal force" France's
"insidious fury" If France wanted to
fight.
The firm Italian stand consider
ably Impressed diplomatic quarters,
where it was felt Premier Mussolini,
determined to make the Rome-Berlin
axis benefit him, was in great
earnest in the matter.
(The convention assures Italians
In Tunisia the French North Afri
can protectorate for which Italians
started a campaign November 30
their right to Italian citizenship un
til 1965. It never has been ratified
by the French parliament but French
diplomatic experts consider that It
has been in force since It was signed
In Rome January 7, 1935).
Diplomats expressed the viewpoint
Premier Mussolini felt his position
strengthened after the four-power
agreement on the division of Czech
oslovakia September 39 and might
be considering the use of force to
achieve some striking success.
They added II Duce had paid no
regard to French assertions that It
aly had occupied French territory
ceded under the 1935 agreement,
which defined borders between Tu
nisia and Italian Libya and between
Italian Eritrea and French Somali
land in East Africa.
Manufacturer Dies
Near Grants Pass
Grants Pass. Dpc. 22 Carlton
Newman Davis, 01, San Francisco
glass manufacturer who retired in
1932. died Tuesday nitrht at his
Rogue river home near here.
The body was sent to San Fran
cisco for burial. Survivors Include
the widow, a sister, Mrs. Jessie D.
Moldrup, Piedmont, Cel.; and two
brothers, Dr. Howard P. Davis and
Walton P. Davis, both of Ban
Francisco,
Chines. Children Picket Boat Chinese children Joined their eld
ers and others In protest picketing of the loading of scrap Iron on
two boats on the San Francisco water-front, and longshoremen
have refused to pass their lines. Banners carried by the children
explain their attitude toward the shipments. The pickets halted
the loading for three days before withdrawing. Associated Press
Photo.
Many Volunteer
To Aid Santa
The Capital Journal Christmas cheer campaign is going
over the top in a large way and the Santa Claus editor'a de
partment is busy sorting food, clothing and toys for needy
families. There are still many uncared for and Christmas eve
is just 48 hours away. If you
Chinese Claim
Japanese Rout
Shanghai, Dec. 22 Chinese
reported today that their forces
smashed through the defenses at
the east gate of Yochow, only Im
portant city held by the Japanese
In Hunan province, and street fight
ing wag In progress.
Yochow, 132 miles up the Yang
tze liver from Hankow, Is the base
from which the Japanese launched
their Hunan campaign shortly af
ter the fall of Hankow.
Another Chinese column was re
ported pushing northward from
Tungcheng, 40 miles east of Yo
chow, tn an effort to cut the Canton-Hankow
line at Puchl and force
Japanese withdrawal toward Han
kow, Chinese advices said guerrilla ac
tivities in north Honan province
In the Yellow river zone had caus
ed 2000 Japanese casualties during
the past two weeks.
From Chungking, Qen. Chen
Cheng, chief of the Chinese national
military council's political depart
ment, announced that 250.000
wounded Chinese soldiers had re
turned to the army following re
covery.
He minimised the Importance of
Japanese efforts to cut Chinese
communication lines, declaring Chi
na had an ample supply of food
small arms and machine-guns to
continue the war Indefinitely.
Daladier Wins by
Narrow Margin of 7
Paris, Dec. 22 (P) The chamber of deputies, which
nearly defeated the Daladier government on a vote of confi
dence earlier today, came back with a second and stronger
vote tonight by adopting the entire
Article two of the budget bill by 332
to 26A.
Paris, Dec. 33 WP) Premier Da
ladier plan to reorganize French
finances by decree received approv
al for the second time today by the
slim majority of seven votes In the
chamber of deputies.
The chamber ratified by a vote of
291 to 284 the Inclusion In the 1939
appropriation bill of a section carry
ing Implied approval of all the de
cree laws issued under the new
three-year economic plan.
Daladier, who stakes the life of
his government on the vote, made
little attempt to hide his opinion the
cabinet had barely squeezed out of
a tight place.
He declared, however, he was op
timistic over the formation of a
"faithrul majority" upon which he
could depend.
As he left the chamber he told the
deputies flatly "If I had been over
11 do your share just call the
Santa Claus editor, 3573, and you'll
be assigned a family to bring Christ.
mas cheer to this holiday time.
Varied have been the contribu
tions to the fund this year. A de
lightful old man approached the
Santa Claus editor this morning to
request a list of 10 needy families
to whom he might deliver boxes of
apples. One family donated several
dozen beautifully wrapped packages
of nuts. Two Salem matrons whip
ped up 30 colorful, starched green
cheesecloth bags and filled them
with nuta, cookies, oranges and as-
sorted candies. A prominent Salem
dentist presented amusing tooth
brushes and holders for distribution
to needy youngsters and tucked In
a few Seven Dwarf dolls for good
measure. Another kind person pre
sented six turkeys to needy farrllles.
Checks and cash donations have
added to the fund materially and
hour by hour a Merry, Merry Christ
mas becomes more real for hundreds
of needy folk,
ramllr 49. Thlt Ii a poor old tiritl.
mn llvlnt Ion. He U rircrlr able to
nln on tn pitta nc he hi to llv
On wiihlni to brine true holiday Joy
mfrht tftkft thu old man a banket,
- Pamllir &0. Thlt couple ha had a treat
deal of lllneaa and avcrrthlni they ha
ha ton. A Ohrlitmaa box would mnte
Saturday tvenlnc and Sunday Christ
ma Instead of Juat another week-end.
Family 61. Thl mother and her only
child have been blue then pait few day.
Alone In the world, they have scarcely
enouth to at. The pronpeet of Chrlat-
maa la bleak unleai aomeon will help
them alone.
Family l. A mother haa been deiert-
ed by her husband and left with three
mill children. 11. t and I. Th nerd
for food for tht family I urtent. Will
you do your part by helplnt, them Juit
a littler
Family H. One thla man had a lob,
(ronrliiflVrl nn pnjrr. IS, rohimn 8)
thrown I would have demanded im
mediate dissolution" of parliament.
An analysis of the vote showed
Daladier had won approval from 47
per cent of the chamber s full mem
bershlp of 017.
Observers said most of the ab
stainer! were opponents of the gov
ernment who did not vote only be
cause they were reluctant to share
responsibility for overthrow of the
cabinet. Among them were 10 mem
bers of the Daladler's own radical
socialist party. The premier held
most of the right and center.
An unofficial tabulation divided
the 284 opposition votes thus: Socia
lists, 155; communists, 73; radical-
socialists, 26; Independent leftists,
12; republican socialists, 18.
Abstainers Includes nine members
of Col. FYancois de la Roc q ire's
French social party, eight republi
can socialists, four members of the
republican federation and three in
dependent leftist.
Wall Street
Blamed for
Firm's Crash
Swindler Exonerates
Brothers; Claims He
Acted for Good of All
New York, Dec. 22 (IV-F.
Donald Coster, born Philip
Musica, said in a suicide note
made public today that "bank
ers, lawyers, auditors, ap
praisers and incompetent
high salaried executives have
bled McKesson and Bobbins
white."
The amazing swindler who
shot himself to death in his
Connecticut home when his
activities were discovered said
the company which he headed
"should have been in receivership
at the time of the crash one year
after Its reorganization."
'1 have tried to hold tt up to stave
off the inevitable," he wrote. "No
man has ever worked harder or re
ceived less pay to make something
work out for the Interest of all.
There has always been friction
within the board of directors because
the wholesale business la a rotten
business at beat the wholesale part
wrote off millions of bad debt and
inventories. There was nothing said
about that. Just that the 1920 crash
was responsible."
Attorney Publishes Note
The note exonerated hit brothers
in masquerade and asserted he was
the "victim of Wall street plunder
and blackmail in a struggle for hon
est existence." u
The note was made public by Sa
muel Reich, Coster-Muslca'a attor
ney. The note asked "the world to
judge If bankers, lawyers, auditors
and appraisers that got millions out
of the company knew nothing.
Coster-Muslca denied narcotics or
alcohol were Involved in his deals
and asserted "I have not tried to
ruin the company or the stockhold
ers." "If I did," Coster-Muslca wrote. '1
would have told my holdings In 1928
for over $3,000,000. Instead, I am a
ruined man through the treachery
of legal Intrigue."
Regarding his concealment of his
masquerade from his wife, Coster
Muslca said he had "too much pride
and regard for a lonely, devoted and
sick wife to confide In her my inner
said any gifts or presents he
made to his wife or members of his
family were "not company money,"
and his wife "had no knowledge of
any nature or description of my siU
uatlon or operations."
Confidantes Not Rewarded
"My brothers-in-law both did as
I asked them because they thought
it was right and proper to do so and
trusted me," he said. "They received
no material reward and did so
blindly at my request."
Coster-Muslca concluded his death
document with the statement "As
you shall deal with my poor, unfor
tunate wife, her family and mine, In
like measure shall God reward you
all."
Reich said the note was written
the night before Coster-Muslca shot
himself, that It was addressed to
Reich and found among the dead
man's papers.
Simon Quizzed
While Investigators studied Coster
Muslca's suicide note Benjamin Si
mon, allegedly associated with Mc
Kesson and Rob bins in negotiations
for the sale of arms and munitions,
was taken before the federal grand
Jury.
Brien McMahon, assistant V. B.
attorney general, said Simon worked
with Coster as an Investigator In
the attorney general staff and knew
he was Philip Musica, ex-convict
and central figure In a $1,000,000
swindle In 1013.
McMahon said Simon provided the
swindler with his new Identity by
filing five false birth certificates In
Washington, D. C. for Coster, his
three brothers and one of their sta
ters. BUY CHRISTMAS SEALS
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