4
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(G apita! MJoBraal
Weathei
Partly cloudy tonight and Thura
day, probably with ahoweni little
change In temperature: tentle Tart
able wind. Tuesday: Max. 71, nun.
47. No rain. River t ft. Northeast
wind. Cloudy.
First in News Photos
With th AuocltUd Press Tele
Mat service Uie Capital Journal U
enabled to prennt photo ot world
venta within a lev boura ot their
occurrence.
51st Year, No. 147 r.,"Z'a 1 Salem, Oregon fl Bfl 1 li H Wednesday, June 21, 1939 Price Three Cents TucS.?
(Richardson- Views Shorta
2 -Mystery
(2 5 5
3 ...
urn
Port of Swatow
Easily Seized
By Japanese
Way Cleared by Air
Raids, Shelling; Tientsin
Crisis Marks Time
Bj the AuodaUd Prtu)
Japan easily captured the
Port of Swatow today, tight
ening her grasp on the South
China coast, while in the north
her issue with Britain at
Tientsin apparently settled
down to a drawn-out test of
patience.
? Dispatches from Swatow
said 800 Japanese soldiers,
their way cleared by air raids
and a naval bombardment,
reached the city during the
morning and, encountering little
resistance, continued Inland.
Despite long preparations, Chi
nese failed to carry out the Custom
ary "scorched earth" destruction ol
the city of 178,000, 320 mile east
of Canton. Anticipating the land
ing, more than half of the Chinese
civilian population had fled.
Tientsin Crisis
Both Britain and Japan were
waiting for the other to make the
first peace overtures in the eight-day-old
Tientsin crista-
British Prime Minister Chamber
lain told the house of commons the
British government did not "acqui
esce" in the blockade and had made
clear to Japan Britain would take
j necessary steps to assure adequate
y. food supplies for her beleaguered
subjects in the Tientsin concession.
In Tokyo, British Ambassador
61r Robert Leslie Craigle called on
Renzo Sawada, Japanese vice min
ister of foreign affairs, to urge dis
continuance of alleged discrimina
tions against Britons in Tientsin.
Women Removed
With 1,000 British women and
children being removed from the
blockaded British concession at
Tientsin, men in the besieged area
expressed belief they would be bet
ter able to care for themselves.
Japanese at Tientsin, however, de
clared that "London realizes Ja
pan will call Britain's bluff and
held that only a general adjustment
of British-Japanese relations could
settle the issue.
At Singapore British and French
military chiefs gathered for defense
talks, possibly to consider naming
a commander of their combined far
eastern forces in the event of
war.
Montana Oil
Fight Revealed
Portland, Ore., June 21 (U.F9 A
vigorous competitive struggle be
tween northern and southern Mon
tana oil companies in addition to
their joint fight with major Pacific
coast firms for northwest business
was revealed today at an Interstate
commerce commission hearing on
petroleum freight rates.
Northern Montana independents
at Shelby, Cutbank, Havre, Sun
burst and other points are support
ing the Great Northern railroad's
effort to establish a rate of 30 cents
per hundredweight on petroleum pro
ducts into Spokane, Wash., and the
Inland empire.
' This rate, however now under
suspension by the ICC would not
apply from southern Montana fields
such as Billings and Laurel.
At today's session, a part of the
ICO investigation of the entire pet
roleum rate structures In the Paci
fic northwest, southern Montana in
terests stated their case and advoca
ed lower rate for themselves, too.
Another Step in
Valley Project
Congress, according to press dis
patches from Washington, today
took one more step toward making
$5,800,000 available to start work on
the Willamette valley flood control
project by July when the house
passed the civil works bill and sent
It to the senate with only one min
or amendment.
Senate concurrence and the sig
nature of the preslsdent are ex
pected without difficulty,
i As passed by the house the bill
includes SMO.OOO with which to
start work on relocation of the
North Sentlam highway around the
Detroit dam site, j
Neutrality Bill
Up Wednesday
Washington, June 21 VP) The ad
ministration's neutrality proposals
today were given a definite spot in
senate committee proceedings but
tha-date selected next.. Wednesday
meant another week's delay.
Chairman Pittman (D.-Nev.) said
they would be made a special order
of business for the foreign relations
committee June 28,
His committee met today to con
sider the revision proposals, such as
are carried in the house bill written
by Rep. Bloom (D.-N.Y.) but agreed
to a delay. President Roosevelt ask
ed yesterday that congress act on
the bill this session.
Disputing those critics who have
said the bill was an "un-neutral"
measure which would not pass, Pitt
man expressed a belief the house
would approve the Bloom bill. He
added he intended to go ahead in
the senate, in any event.
Opponents expressed doubt today
It would reach the senate floor be
fore adjournment despite President
Roosevelt's request that congress act
on It.
Senator Borah (R.-Idaho) pre
dicted after the house votes on the
measure next week, congressional
leaders might decide to postpone
senate consideration until next ses
sion. Senator Nye (R.-N.D.) said he did
not believe efforts to revise the pres
ent law would be carried to the
length of keeping congress in ses
sion until late August, in the face
ol probable extensive debate.
Senator M'Nary
Rapidly Recovering
Washington, June 21 (IP) Sena
tor McNary (R., Ore.), was reported
by members of his staff today to be
recovering rapidly from an attack
of intestinal Influenza.
They said the senator's physician
had advised them McNary's fever
had completely disappeared and he
could probably be up and around
next week, unless complications
arose.
NLRB Rules to Permit
Employers to Petition
Washington, June 21 (U.R)
the National Labor Relations board, said today that the board
has definitely approved a change in its rules to permit em
ployers to petition it to conduct col-
lectlve bargaining elections among
their workers.
The change haa been sought by
businessmen, who contended that
sometimes they could not determine
what labor union they should bar
gain with. Pending proposals to am
end the Wagner act Include provi
sion for the board to recognize em
ployer petitions.
Fahy revealed the board's deci
sion at a house labor committee
hearing on amendment sponsored
by the American Federation of La
bor. Joseph Padway, AFL counsel, said
to the committee, "you are not going
to get any change In the regulation.
Lou Gehrig's
Baseball Days
Probably Over
Mayo Experts Find Play
er Suffering from Chronic
Infantile Paralysis
New York, June 21 m
Ed Barrow, president of the
New York Yankees, announc
ed today Lou Gehrig is suffer
ing from chronic infantile pa
ralysis and probably will nev
er play baseball again.
Barrow's statement came
after Gehrig had turned over
to him the formal report made
by Mayo clinic experts. Geh
rig had spent several days in
the clinic in order to have a
thorough check made of his physi
cal condition.
The one time great first baseman
had been worried about his condl
tlon all year. After making a bad
showing In the field and at bat dur
ing the early part of the season.
Gehrig voluntarily benched himself
May 2, thus ending his consecutive
games streak at 2,130 games.
Suffered 2 Years
He sat on the bench for several
weeks but could not regain his
strength. Finally he decided to put
himself in the hands of experts to
determine Just why he bad lost his
baseball form so suddenly. His trip
to the clinic followed.
Barrow said Gehrig apparently
had been suffering from the ailment
for two years and only his remark
able physique had enabled him to
play.
The veteran will be continued on
the Yankee payroll for the rest of
the season at least and will remain
as non-playing team captain.
Can be Checked
Barrow said he understood from
the physicians' reports the disease
could be checked and in any event it
probably would not get worse.
The Yankee leader obviously was
broken up as he made the announce.
ment. Gehrig long has been one of
his favorite players.
Barrow said the first baseman
would not play again this year but
Indicated there was an outside pos
sibility he could return to the game
eventually. Gehrig was 38 years old
Monday.
"You have to take the bitter with
the sweet," Gehrig said. If this
means the end of the trail for me
I'll have to accept it."
Explains Disease
Chicago, June 21 W) Dr. Morris
Flshbein, editor of the Journal of
the American Medical association,
made the following comment today
on the diagnosis of the Illness which
has possibly ended Lou Gehrig's ca
reer as a baseball player.
"The diagnosis of chronic infan
tile paralysis used to describe a
wasting of the muscles of the neck
and upper parts of the body.
"It passed from general use when
Infantile paralysis was better known
and segregated as a separate disease.
"The diagnosis of anyotrophlc lat
eral sclerosis is a well established
scientific diagnosis of a condition in
which there is a hardening of the
tissues in the spinal column and a
wasting of the muscles dependent
upon it."
Injury Fatal
Tillamook, June 21 (O A gaso
line truck toppled from a Jack yes
terday and fatally Injured Frank
Mott, 86, service station employe.
Charles Fahy, counsel for
to permit employer elections,
until
after congress adjourns.1
Fahy Interrupted and said that
the change had been approved by
the board yesterday and was being
drafted in legal form.
He said he had not made any
statement on the change because
board chairman J. Warren Madden,
who told the committee recently
such a change would be made in
deference to employers caught be
tween the contending labor factions,
was communicating the decision to
Committee Chairman Mary T. Hor
ton D, NJ.l.
Fahy remark Indicated that the
new regulation will go into opera
tion soon.
Fugitive, Wife Mrs. Ray Olson
. (upper) was held i Jail -l
possemen attempted vainly to
trap her husband, identified as
August Buelo (lower), by Dis
trict Attorney Jay Davis of Hay
ward, Wis., from this picture.
Olson, or Buelo, left his wife
behind as he fled following the
slaying of two deputies who
sought to arrest him. Asso
ciated Press Photo.
Germany Asks
Consul's Recall
Berlin, June 21 (iP) The German
government announced today it had
asked Great Britain to recall her
consul-general at Vienna, Donald
St, Clair Gainer.
The request was made as a result
of the British government's action
In ousting Walther Relnhardt, Ger
man consul-general at Liverpool,
who was accused af assisting an
espionage agent.
A German government spokes
man said sufficient "similar evi
dence" had been assembled against
Gainer to warrant the demand for
his recall.
The official reason given for the
German government's demand was
that "during a court action It de
veloped that the British consulate-
general in Vienna was involved in
an affair concerning a forbidden
Information service."
No further explanation was given
Oalner, 47, has held consular
posts In Germany for 12 of the last
13 years. He assumed the Vienna
post last year, shortly after Austria
was annexed to Germany.
Gainer took over conduct of
British affairs In the former Aus
trian capital after the British le
gation there was closed. It fell to
him to absorb the old legation in
his new consulate-general. Previ
ously he had been consul-general at
Munich.
A German informant previously
had said the request for recall of
a British official would be a "tit
for tat" measure.
Showers Forecast
To Greet Summer
Portland, June 21 OP) The sun
cleared the sky for the first time in
day but an unconvinced weather
bureau predicted clouds and showers
tonight for the opening hours of
summer.
When summer glows In at 11:40
p.m, there probably will be general
cloudiness. The forecast, however,
confined the rain chiefly to the
northwest portion.
Portland's trace of rain yestterday
was the only precipitation recorded
at stations reporting to the gov
ernment bureau. Temperatures rose
to a maximum of SO degrees at Med
ford and slipped to a minimum of
34 at Baker. Baker probably shun
ned the honor but It tied with Butte,
Mont, for the lowest temperature at
the major point on the national
weather chart, i
White House
Keeps Silence
On Third Term
Senators Smothers, (N.J.)
And Logan, (Ky.) Declare
In Favor of Nomination
Washington, June 21 (JP)
Despite White House silence
on the 1940 presidential race,
two senate democrats today
spoke for a third term for
President Roosevelt if he
wants it.
Senator Smathers, New
Jersey democrat, predicted his
state's 32 delegates to the par
ty convention next year would
back the president again. Sen
ator Logan (D.-Ky.) said
while he hoped Mr. Roosevelt would
not seek another term Logan would
support him should he do so.
From the White House there was
no inkling of what the president
has in mind about 1940, however,
and indications were that there
would be none at least until Mr.
Roosevelt makes his west coast
trip. Senator Smathers believes
that Roosevelt, who carried New
Jersey the last time by approxi
mately a half million majority, "can
again sweep the state in 1940-"
Can be Elected
"They all believe," he declared in
a statement, "that he will be draft
ed by the party to lead it to vic
tory again next year.
"President Roosevelt is the one
democrat in the nation who can
carry Mew York state In 1840, be
cause he is the one democrat in the
country that the progressive mayor
or New York, LaGuardla, will sup
port against Dewey or any other re
actionary republican."
Logan prefaced hi promise of
support with a declaration of his
view on the general question of a
third term.
"I have always thought it unwise
for anyone to run for a third term,"
Logan said. "That haa always been
my view and I haven't changed it.
I hope the president will not run,
but if he does, I will support him.
I always support the democratic
nominee.
"If the president does seek the
democratic nomination, he will get
It and be elected."
The chief executive made It
plain at a press conference yester
day that he would have nothing to
say about a third term now or in
the near future.
In fact, he gave this indication on
three separate occasions, despite his
laughing replies to questions de
signed to draw him out on th po
litical topic of the hour.
Thomas Pleads
For Inflation
Washington, June 21 WV-Senator
Thomas (D., Okla.), in schoolmas
ter style, told colleagues considering
monetary matters today "no poli
tical party ever has succeeded it
self on a falling price level.
'We are not out of the depression
yet because the price level Is too
low," he said. In a chart-illustrated
appeal for new currency expansion.
The bill under debate would ex
tend the president's emergency
monetary powers and the opera
tion of the 12.000,000,000 stabiliza
tion fund to 1941.
Thomas declared he was no "In
flationist" and defined inflation as
the issuance of Irredeemable pa
per money."
With Senator McCarran (D., Nev.),
Thomas seeks to reduce the stabili
zation fund to 1500,000,000 and is
sue 12,000,000,000 In new money
backed by the remaining $1,500,000,-
000 from the fund and $500,000,000
of free treasury gold. They also
would have the treasury raise its
price for newly mined silver from
MM cents an ounce to $1.05.
Thomas had the floor for a speech
to last several hour. Prospect for
enacting new relief, monetary and
tax legislation by June 30, when
many administration powers in these
fields expire, meanwhile became in
creasingly uncertain.
Progress ha been made In some
directions, however.
Lions May Lease
Boy Scout Camp
Washington, June 21 (Pt-A bill
authorizing leasing without cost for
50 year public land near Junction
City, Ore., to the Junction City lions
club for use a a Boy Scout camp
was introduced yesterday by Repre
sentative Mott R.-Ort..
Ex-U. 8. Judge To TJ. S. Prison Martin T. Man ton (2nd from left,
wearing glasses), former Judge of the United States Circuit Court
of Appeals, 1 shown here in New York during a court recess on
the day he was sentenced to two years in federal prison and fined
$10,000 following his conviction on conspiracy charges. A crowd of
curious sightseer follow the former Judge a he goes to lunch.
His Impassioned personal plea to the court before sentence was
passed was ignored. Associated Press Photo.
Nazi Troops Sent
To ' 'Limes ' For ts
Paris, June 21 (U.R) Germany is moving the first units
of a force of approximately 100,000 men into its "limes" for
tifications opposite the French frontier, it was reported to
day. In addition, it was said, the crack nazi "Condor legion
which fought in the Spanish civil war is to be installed at Sar-
Contractors'
Request Denied
Several contractors protested to
the board of control today against
provision in state contract requir
ing them to take out workmen's
Insurance under the state industrial
accident commission, but the board
took the matter under advisement
The contractors said they could
get coverage through private Insur
ance companies at a lower cost.
Gov. Charles A. Sprague said the
attorney general ruled tnat the pro
vision in the contract was required
by law. The governor added that
the practice was long established
and "It would be a bit arbitrary
on our part to overturn this prece
dent"
State Treasurer Walter E. Pearson
said, however, that "It Is wrong to
require contractors to have state
compensation. The private Insur
ance companies pay state taxes,
while the state Industrial accident
commission does not It 1 more
arbitrary on our part to continue
a policy which the legislature never
intended. It 1 an Injustice."
Secretary of State Earl Snell, third
board member, said he thought the
legislature would have to amend the
law before contractors could be in
sured by private companies.
Silverites Threaten
Senate Filibuster
Washington, June 21 (U.R The
senate silver bloc today openly In
formed the administration that it
wlU attempt to delay a vote on
"must" monetary leglslaUon in an
effort to force the treasury to in
crease the purchase price for domes
tic silver.
Senator Majority Leader Alben W.
Berkley said he had not decided
what tactics to employ to break up
th mnew a movement of fili
buster aspects which threatened ad
ministration plan for fast senate ac
tion of monetary, relief and tax leg
islation. Sportsmen Drive
To Raise Fund
La Grande, Ore., June 21 (U.I!)
Backer of the Anthony Lake
sportsmen's lodge project today pre
pared for a final drive to raise $2,
500 (till needed to complete a $20.
000 matching fund. When the pre
scribed total haa been obtained, the
federal government will supply $135,
000 tor th lodge construction.
srebruck, in the frontier zone, for
special training.
Today, it was said, 50,000 to 60,000
men began moving in to take up
their positions in the first line and
soon another 30,000 to 40,000 will be
moved Into the second line.
According to border reports, Ger
man have tightened the frontier
control coincident with the troop
movements, and motorized units
now patrol the frontier. Travelers
are subject to rig'd surveillance, It
was said.
Extension of the western frontier
defenses comes simultaneously with
reports that big German troop move
ment are in progress toward Ger
many's eastern frontier, chiefly In
the region of Slovakia whence Ger
many could strike at Polish Silesia.
Japanese Vessels
Moved from Fleet
Los Angeles, June 21 (P) The
Times said today the navy had re
quested the harbor commission to
see alien-flag vessels are not an
chored where they might interfere
with TJ. 8. fleet operations.
Two incidents recently Involved
appearance of Japanese vessels near
American warships. The motorshlp
Aklura Mara was reported boarded
May 12 by a naval officer when It
anchored a quarter of a mile off
Long Beach breakwater In what
amounted to a box seat for the re
turn of the fleet from Atlantic ma
neuvers. June 12, the paper said, the
naval tanker Bhlriya was moved
from a position near the navy re
pair ship Medusa to another loca
tion far from the fleet
Tornadoes Add to
Texas Flood Terrors
Lubbock, Tex., June 21 (fF) Rain still beat a dangerous
patter today in west Texas, a section beset by high water and
tornadoes that left two dead, several injured, hundreds home
less and heavy damage. Locked In
silence by Impassable highways were
several communities near here, bat
tered by twisters last night that
killed W. H. Jackson as he sat in his
Updike community farm home, 25
miles west of here. His wife was crit
ically Injured.
The Colorado river, which pushed
down railway and highway bridges
In a surge near Colorado City yes
terday, receded at that point but
spread out in wastelands on a down
country surge after taking a man'
life at Snyder.
Three sections of the Santa Fe
railway bridge six mile northeast
of Crowell washed out and three car
were swept off the Quanah highway
Deputy Denies
He or Drager
Took Any Money
Never Could Find Reason
For Shortage But Admits
Posting of "Cover-Ups"
Again under fire of cross
examination throughout the
morning today and facing an
other afternoon of it, W. Y.
Richardson, former deputy
county treasurer, not only em
phatically denied taking any
money from the treasury but
also absolved his former su
perior, Treasurer Drager, as
far as his knowledge went.
There s just one man
knows whether he took any
money and that's me," declared
Richardson during the course of
the searching cross-examination by
Prosecutor Marsh on the $33500 em
bezzlement charge. "And I've got a
clear conscience. I know I wasnt
taking that money and I oouldnt
find any place where I could accuse
Mr. Drager of taking it I asked Mr.
Drager from time to time to help
me find the reason for th shortage
and he did help me all he could.
Posted Cover-ups
After Richardson had said he
couldn't aay whether the rolling of
vouchers was the method ot cover-up
used all the time and each year, be
did say that he did aU th posting
of the cover-up and these, he said,
"you'll find In my handwriting."
Prosecutor Marsh then attempted
to get the defendant to particular
ize as to how Richardson and Dra
ger had gone about it to arrive at
what vouchers should be used each
year to make the cover-up.
"How did you do It?" he asked.
"Did you put it down on a piece of
paper?"
Richardson said it waa don In no
particular way and ha couldnt tell
Just who did one thing and who did
another between him and Drager in
making checks on the shortage and
determining what voucher should
be used each year in the cover-up.
Clear Conscience
"Didn't your conscience ten you
you were doing wrong?" Mann ask
ed the witness.
"I knew I shouldn't do It," he an
swered. "But I knew It waa the only
way to do it. My conscience told me
I wasn't taking any money."
"Didn't it worry you along in De
cember when you had to make these
change to effect the cover-up?"
"It worried me to the extent I had
to cover up. Yes, It worried me all
the time," said the defendant
Marsh attempted to pin the wit
nes down a to appearance af
monthly shortages and what appear
ed in the private memorandum
book of the defendant to be a rec
ord of some of these, selecting a (Pa
cific Instance.
Padding Possible
"When you saw where a shortage
of $100, say, appeared in a single
month, why couldn't you trace that
shortage down for that month?"
Marsh asked.
"Why couldn't I find the other?"
was the response of the defendant
Marsh brought out the statement
to the witness that there was usual
ly around $1000 to $1500 In the treas
ury till and asked if it wouldn't be
possible for someone to take the
money from the till and cover his
extraction by padding the list of
warrants, which Richardson admit
ted could be done. Then the defend
ant, in answer to a question, said
there would be no way of checking
(Conclndrd on pate . eoluma ?
but none of the occupant was in
jured.
Quanah worried through 4.224
inches of rain last night while Ama
rillo, struck by 1 98 Inches, reported
no damage with highways still open.
Carcasses of livestock and debris
littered the highway out of Lub
bock, making It hard to communicate
with section believed visited by last
night's twisters. Communication
lines were wrecked.
Five person were Injured and at
least half a dozen house were level
ed south of Shallowater, 12 miles
northwest A third windstorm dam
aged numerous outbuilding and res
idence In th Lingo, W. M area.