V
The Afternoon ..
Newspaper Leads
The Capital Journal la tint with
th latent news of th European
crisis. United and Associated Preaa
newa dispatches. Tba only Salem
paper carrying both service.
Weather
0nerally fair tonight and Tuea. -day;
little change In temperature;
northweat wind. Sunday: Mas. M,
Mln. 47. Rain 0. River -4 ft. South
weat wind, clear.
51st Year, No. 198
Entered w woond olut
metier ei Aelein, Oregon
Salem, Oregon
Monday, August 21, 1939
Price Three Cents
On Trains and Hew
elands Five oenia
Nyfc.ral Nations 'Launch PessMovemenfc
II fn 1H IB .1 11 M
Fire Conditions Improving
Paul J. Raver
Appointed to
Head Bonneville
Illinois State Official
Takes Reins of Columbia
Dam Project
Washington, Aug. 21 (P)
Dr. Paul J. Raver, chairman
V of the Illinois commerce com
7 mission, was today named ad
ministrator of the Bonneville
power project in Washington
and Oregon, effective Septem
ber 15.
Dr. Raver, born in Logans-
port, Ind.. will relieve Frank
A. Banks, federal construction
superintendent of the Grand
Coulee project in central
Washington who has been acting
administrator at Portland, Ore..
since the death of J. D. Ross.
in announcing ut. Ravers ap
pointment. Secretary Ickes, nominal
head of the Bonneville project, said
he was grateful to Governor Horner
lor releasing th.e official from his
Illinois post.
Ickes said he felt that Dr. Raver
was especially well Qualified to turn
die the Bonneville assignment "as
a result of his long and brilliant
record."
"He has demonstrated ability to
handle In the public Interest the
marketing of the power from Bon
nevtlle dam." Ickes said. ......
f ut. Raver, who Is 43 years old.
graduated as a civil engineer, from
the University of Nebraska In 1917.
received a degree of master of bus!
ness administration from Northwest
university in 1927 and a degree of
doctor of philosophy In 1933.
During the war he served as a
lieutenant In the 18th field artillery,
Upon his return from France he
served until 1927 as valuation
and estimating engineer in Chicago.
For the next six years he was. in
turn, Instructor, assistant professor
and associate professor of public
utilities at Northwestern university
In 1933 he became supervisor of
the section of rates and research of
the Illinois commerce commission,
organising the section directing
special research on revenues, rates.
cost of capital, incorporate rela
tions, rate returns, securities and
related subjects.
Two years ago he was appointed
Executive officer of the Illinois com
mission and resumed part time
teaching at Northwestern.
Dr. Raver also served as a mem
ber of the Illinois state (rural elec
trification committee for the past
four years.
Ickes said Banks would return to
his regulation work at Grand Cou
lee after September 15.
"Mr, Banks has done a fine job
on his temporary assignment,'' he
said. "Good progress has been made
on the construction of transmission
lines and In negotiations of power
contracts. v
"Mr. Banks Is an outstanding
construction engineer and he let me
know when I drafted him for act
ing administrator at Bonneville
that the completion of Grand Cou
lee dam was his ambition.
Announce Suspension
AOf News-Telegram
Portland, Aug. 21 ( The
nounced it would suspend publication with today's editions
because of "greatly increased costs of production" and "an
ever-growing tax burden." In a
statement published In this morn
ing's edition, the paper announced:
"In spite of the un -easing efforts
of an able and loyal organisation,
this newspaper has encountered
Increasing difficulties, ranging from
greatly Increased costs of production
to an ever-growing tax burden In
the face of which continued opera
tions on a sound basis are not pos
sible." The paper publishes the United
Press leased wire report, announced
that the competln- Oregon Journal
had taken over features and other
comics, and had acquired the cir
culation list.
The Telegram was established In
1877. In 1931 It anl the Scrip -controlled
Dally News, which waa es
tablished in 108, were consolidated.
The News-Telegram waa a member
ktf the Scrlpps terw of newspapers.
About ISO editorial, circulation
and other employes were on Um
Slays None In Break Attempt Hulen Presley, escaped Washing
ton state convict, Is shown handcuffed in a Portland, Ore., hospi
tal bed after he had seised a guard's pistol and slain his nurse
and wounded two men In an attempt to escape from the hospital.
Presley had been wounded In the leg during his prior capture. In
his attempt to flee the hospital he was shot In the neck. Asso
ciated Press Photo.
$25,000
Tillamook Blaze
The state forestry board agreed today to advance the
northwest Oregon forest fire protective association $25,000
to fight the Tillamook fire, which has roared over 200,000
acres of the 268,000 acres that were burned in 1933. The asso
ciation told the board it would have to stop fighting the fire
4 Convicted
Of Oil Frauds
Tacoma, Aug, 21 (n Four de
fendants In the People's Gas and
Oil mall fraud trial were found
gulltx m varying degrees and three
others were acquitted by a federal
court jury which returned a verdict
at 11 a. m, today.
A disagreement resultld In the
Jury's consideration of evidence
against an 80 year old defendant,
Dr. H. Harry Meyers of Los Ange
les. Joshua F. Simons, People's Gas
and Oil company president, and
William Markowltx. his long-time
business associate, were found guilty
on all 13 counts contained In the
government's Indictment.
Milton Simons and Samuel Mar'
kowits were convicted on the last
three counts in the indictment, two
of them Involving violations of the
securities exchange act and the
third a conspiracy count.
William A. Broome, geologist and
president of the People's Gas and
Oil Development company: Louis
Roth, listed by the government as
financial backer in the develop
ment; and Maurice "Pat" Rob kins,
company bookkeeper, were acquit
ted.
The government had charged the
eight men with defrauding some
,000 Investors out of approximate
ly 11,980.000.
Portland News-Telegram an
News-Telegram's rolls this morning.
The Portland News Publishing
company will retain Its physical
properties, Including the building,
plant and equipment.
The suspension left the Oregon
Journal alone In the afternoon field.
witn tne oregonlan alone In the
morning field.
The Telegram was founded by
D. E. CrandaU, C. M. Elliott and
H. L. Plttock, and first was pub
lished In the plant of the Morning
Oregonlan. In 1914 It was purchased
by J. K. and L. R. Wheeler. In June.
1927, It was purchased by Herbert
Flelahscker, of Ban Francisco at a
bankruptcy sale. In May, 1931, he
sold It to the owners of th Port
land News, and the two papers were
consolidated.
The News was established by the
Ssripps newspapers, and In 1921 It
became a member of Um Stripps
Canileld group, . I
to Fight
at immediately because the association
and Its member logging companies,
which are salvaging the timber
which was burned In 1933, are
"busted wide open."
Association representatives said
the fire has caused (900,000 damage
not including the loss of standing
timber.
The board said It hoped the $25,
000 would tide the association over
until the weather moderated or un
til some federal help could be ob
tained. Gov. Charles A. 8prague
said he would try to obtain au
thorization of a WPA disaster pro
ject, under which WPA men would
be released from projects to fight
the fire.
The association Is faced with
three fires. One at Scappoose,
which has burned 14,000 acres, Is
under control The Wolf creek fire,
which CCO boys are fighting, will
be under control tonight after
burning over 22,000 acres. The third
fire, near Tillamook, Is completely
out of control.
Assoicatlon officials said they had
938 men on the Tillamook fire, and
that it was costing the association
$9,000 a day to fight It They as
serted It would take more than 1.000
men and 110,000 a day to control It.
The association so far has spent
829,000 In an effort to control the
three fires, which, not Including
damage to standing timber, have
caused $1,000,000 damage.
President's Ship
In Mimic Battle
Aboard the U. 8. S. Lang, Aug. 21
(fPi President Roosevelt, vacation
ing on the cruiser Tuscaloosa, watch
ed his ship engage In a miniature
mlmlo battle with this destroyer
this morning.
The two ships were cruising abreast
18,800 yards apart at 29 knots off
northern Nova Scotia when a gen
eral alarm sent the crews scurrying
to their stations for elementary
gunnery drills.
The Tuscaloosa trained her 8
Inch guns on the Lang, and the de
stroyer pointed her 6-lnchers and
her torpedoes on the president's
fighting ship.
Both craft rounded Cape Breton
early this morning, and were ex
pected to teach Halifax In mld
afternoon. Purple Sun Seen
In Central Oregon
Bend, Ore., Aug. 21 OP) All eyes
were directed toward th tun here
today aa It rose nearly purple and
then turned to lavendar. Weather
observers said smoke from forest
fires and nan were probably respon
sible.
Newspaper offices, the weather
station and airport were deluged by
telephone calls from Band residents.
Cool Weather,
Coast Fogs Aid
Fire Fighters
Meadow Lake and Hood
River Fires Hottest
Tillamook Blaze Creeps
Portland, Aug. 21 (It) Fire
conditions in Western Oregon
continued to improve today,
as the humidity rose and cool,
misty weather prevailed on
the coast.
The favorable weather con
ditions gave hope to the more
than 5000 fire fighters who
have doggedly fought against
the flames for more than a
week.
The Meadow Lake area, 16
miles northwest of McMlnnville, and
the Mt Hood national forest were
the hottest spots In the state,
A huge stand of virgin timber In
the Clackamas river watershed of
the western Cascades was being
menaced by the Mt. Hood blase and
crews of workmen were engaged to
stem the flames' march.
In the Meadow Lake area fire
fighters were fighting against spread
of the flames Into several sections of
government-owned timber outside
the Siuslaw National forest
Flora Camp Wiped Out
The 200-man camp of the Flora
Logging company In Tillamook
county, near "the Yamhill county
line, was wiped out, with loss set at
$200,000. Twenty buildings, 10 don
key engines and other equipment
were burned.
An unconfirmed report said the
Trask-Willamette logging camp In
Tillamook county also was burned,
with a loss of $290,000. Th U. S.
forest service camp two miles north
west of Meadow lake was moved
back eastward, within nine miles of
Carlton.
The huge Tillamook blase, largest
In the nation, aa It has covered 150
miles In the Coast rang between
Forest Grove and Tillamook, crawl
ed within six and a halt miles of
the city of Tillamook at one point.
Fir lines have not been complet
ed around the Eagle Creek fire In
the Chetco district, but It was vlr
tually under control.
The 13,000-acre fire in the Colum
bia national forest, 30 miles north
and east of Stevenson, Wash, was
under control.
One Man Injured
Flames from the Oregon-Ameri
can fire near Elsie, on the new Wolf
Creek highway, were moving toward
the Markham operations on Sweet
Home creek. No damage was re
ported.
An unidentified man was Injured
fighting the blaze In the hillside a
half mile back of La Grande In east
ern Oregon. The city was not In
danger as the wind was blowing the
fire away.
A firebug was blamed for a blase
that burned along the Turtle river,
about 29 miles northeast of Long-
view, Wash. About 400 acres were
burned. CCO youths saved several
homes frcm burning Sunday.
Firebug at Work
Fred South wick, supervising war
den o. the Douglas Forest Protective
association, said a firebug was op
erating in the Paradise creek area
near Elkton, In southern Oregon. A
fir along a two-mil front was
brought under control, but new fires
burned In several sections.
Smoke continued to blot out the
sun In many sections of the state,
making lights necessary before noon.
Th holdings of A. F. Coats, 10
miles east of Tillamook, also were
caught by the flames.
Ford Converse, co-owner of the
Converse and Hltchman camp esti
mated damage to his camp at be
tween $30,000 and $40,000. All build
ings, except two homes, several mil
lion feet of fallen and bucked tim
ber, four donkey engines and three
caterpillars were destroyed.
Siuslaw Blaze
Virgin timber of the Bluslaw for
est was burned when a wind change
caused flames on the Wilson and
Trask rivers to merge In the moun
tains. McMlnnvlUe's water shed was
threatened by a conflagration that
reportedly burned a U. B. forest ser
vice camp two miles northwest of
Meadow Lake and the headquarters
camp of th Flora logging camp.
Improved weather conditions gave
hop that th Banner Creek fire
Caalat M rag J, Colasaa II I
Nazi Efforts
To Influence
Universities
Says German Consul at
New Orleans Offered
Books to Tampa, Tulane
Washington, Aug. 21 (U.R)
Dr. John Harvey Sherman
president of the University of
Tampa, told the Dies commit
tee today that the German
consul at New Orleans had at
tempted to influence faculty
members at Tampa and at Tu
lane universities.
Dr. Sherman was the only
witness today as the commit
tee held a brief session, and
recessed until 10 :30 a. m., to
morrow.
He said Baron Edgar von Spiegel,
New Orleans consul, had offered
books to his university on behalf
or tne nasi government but on as-
surance that the German professor
at lam pa, an outspoken anti-nazi,
would oe -adequate."
Many Accepted
In New Orleans, Baron von Spie
gel said many southern colleges had
accepted book oilers.
Dr. Sherman said that last March
the president of Tulane told him
that "he was quit discontented
with the activities of this man (von
Spiegel) around his campus." He
said the Tulane president charged
that the baron had "snuggled uo"
to various Tulane faculty groups
"very enecuveiy."
Sherman said the offer of books
followed a series of attack on his
German professor, Otto T. Kraus,
wno ne said was not sympathetic
to Hitler.
Offer Refused
Sherman refused th offer.
Dr. Kraus, a native of Vienna, Is
a naturalized American citizen. He
was appointed professor of German
at Tampa in May. 1037, and attacks
"based on Innuendo" began a few
months later. Dr. Sherman testi
fied.
'He made It clear," Dr. Sherman
said, "that he was bitterly opposed
to the nasi philosophy. He was
frankly democratic and very liberal.
"After he began his. service a
series of attacks through rumor-
attacks based on Innuendo began
against Dr. Kraus. First, that be
did not speak correct German. Then
that he didn't have the training at
the University of Vienna he claim
ed to have. Those were rumors we
could check.
Character Attacked
"Then there were attacks on his
personal character. These we could
laugh down because we knew Dr.
Kraus. The attacks died down."
On March 10, 1938, Dr. Sherman
testified, the local German consul,
Ernest Berger, called his secretary
"way ne nad a friend who he be
lieved could be Induced to give the
school a library.
Three days later he made an ap
pointment for the donor, whom he
did not name. On March 16 he
called to sa,, his friend, the consul
at New Orleans, was delayed and
would be there th following day.
This was th first, Dr. Sherman
said, that he knew of the donor's
identity.
When the baron arrived and was
Introduced by Berger, Dr. Sherman
said he Inquired:
"Is this the gentleman who wants
to give the library?"
it is not I,, but my govern
ment'," he quoted the baron as re
plying.
Mussolini Silent
On German Demands
Rome, Aug. 21 on Premier Mus
solini refrained today from giving
any indication that he would Inter
vene with a plan to avert possible
war over German demands for Dan
tig. To suggestions that Italy "save
the peace" by Intervention In the
Oerman-Pollsh dispute, well-informed
Italians answered that she
would follow the joint policy of the
Rome-Berlin axis.
They reiterated that Italy had ad
vised Poland to negotiate directly
with Germany for a settlement of
the Danzig problem.
$.508 At Slleti Renntl-IJp
suets. Ore, Aug. 1 WV-An esti
mated 3.500 persons witnessed the
final program of th annual BlleU
Round-Up yesterday. Th crowd
cat forced to fie th grandstand
Saturday after a wild bull leaped a
high fence and entered the stands.
Six cowboys were Injured In the
tort da show,
British andFrench
Cabinets to Meet
Important Joint Action Intended as Pledge to
Poland Renewed as Crisis Intensifies Calling of
Parliament Forecasted for Latter Part of Week
London, Aug. 21 (JFtA
cabinet session tomorrow coincident with a French cabinet
meeting indicated important joint action was intended in the
grave European situation as Belgium today suddenly called
seven small powers to a conference Wednesday to consider a
puuuuie peace move, run caoinet 1
cfatlia lv n . t m I
- ' B ' -! w WUIWIUWB
meeting of British ministers after
Prime Minister Chamberlain, re
turning from a holiday In Scotland,
had conferred with Lord Halifax,
foreign secretary.
The Belgian move In calling the
foreign ministers of the six other
neutral states associated In the Oslo
trade convention to a conference In
Brussels Wednesday offered the
possibility of some British-French
action toward a settlement of the
German-Polish dispute over Dan
tig..
A joint statement by Britain and
France reaffirming In strong terms
their pledge to aid Poland In (vent
of an attack upon her, but at the
same time advocating negotiation
by Germany and Poland, was con
sidered another possibility.
In some polltW quarters there
were suggestions the British parlia
ment should be recalled Immediate
ly and used as a medium tor a new
British warning to Germany.
Some Britons discounted th ef
feenveness of any move toward
mediation or a peace appeal by the
small .Oslo powers pending tome
Indication of a more conciliatory at-
utud by Germany,
A British government spokesman.
referring to a statement of policy
by Foreign Secretary Lord Halifax,
July 28, declared "the position re
mains as stated and Is unchanged
In any respect"
Lepke Insured
For $1,000,000
New York, Aug. 21 WV-The Dally
News says that "quiet but none the
less frantic pleas by Insurance com
panies that the authorities find
Lopis Lepke Buchalter before his
underworld foes locate him first,
brought the amazing disclosure that
New York's No. 1 fugitive carries
approximately $1,000,000 Insurance
on his precarious life."
"Policies on the continued exis
tence of Lepke, it was further re
vealed, are held by mora than half
th leading Insurance companies In
the city," the News paper says.
With a price of 130,000 on his
head dead or alive they are afraid
Lepke's health Is likely to take an
abrupt turn for the worse at any
moment.
"What makes It worse Is that the
policies are airtight. The Insurance
companies have tried vainly to find
some technicality under which they
could cancel them but in taking out
the Insurance Lepke made sure there
were no loopholes.
Lepke used his many (legit)
fronts, as the underworld terms en
terprises designed strictly for cover-
up purposes, in his applications."
Fishing Party
Of Six Drowned
Nye Beach, N. H., Aug. 21 V-
The sea cast up six bodies on the
beach today, revealing the tragic
end of an all-day fishing party.
The victims were identified as:
Ralph Pryor, 55, of Dover, owner
of the boat.
Miss Ethelyn Cutler, of Newmar
ket, a cousin of Pryor. -
Frank Plante, of New Boston, N. H.
Joseph Wajnar, 23, of Newmar
ket Walter Hargraves, 24, of Newmar
ket Clarence P. Yeaton, 47, of Dover.
Identification was made by Fry
or's son, Robert.
Willamette Park
Ballroom Burns
Eugene. Ore., Aug. 21 W Fire of
undetermined origin destroyed the
Willamette park ballroom, rendez
vous for University of Oregon stu
dents, early Sunday. Loss wss esti
mated at 115.000 by Manager A. B.
Loud.
Eugene and Springfield fir de
partments were called, but the
building collapsed before they could
get waUr on It,
decision tn nnlrl full TMHan
.
High Honor Won
By Junior Band
First place In competition In
which 20 junior musical organiza
tions were entered In th Territor
ial Days celebration at Oregon City
was awarded Sunday to the Cherrv
City Master Bread Junior band of
Salem.
The young Salem musicians are
under the direction of Jo Hassen-
stab who has developed them Into
what experts declare la on of the
utstandlng Junior band organixa
tlons of th nation. There are 62
boys and girls In the organization
and then- ages range from 7 to 14
years. All live in this community.
The victory Is considered an out
standing musical achievement of
the year.
CsakyforOld
Friendships
Budapest, Aug. 21 m Count
csaxy, Hungarian foreign minister.
issued a statement early this eve
ning In which he declared "an In
dependent and strong Hungary Is
an maispensaoie xactor in the po
litical balance of central Europe."
The statement, made through the
official Hungarian news agency a
lew nours alter count Csaky re
turned from Germany and Italy.
declared "those who try to loosen
old and Intimate friendships are
working against the maintenance of
peace and against the lift Interest
of Hungary."
Foreign office officials said they
an not now exactly what Csaky
meant by "old and Intimate friend
ships," but It was remarked that
Hungary's oldest and most intimate
relationship is with Poland.
Fire Destroys
Turner Home
Turner, Ore, Aug. 21 For the
second time in IS months fire struck
hard at Lee Barber, Turner grocer,
when the house occupied by him
In the west part of town was de
stroyed at noon today. A year and
a half ago his store and residence
bumed.
The house bumed today was not
owned by Barber, but was part of
the Sebo property. With the excep
tion of some articles on the second
floor the contents were saved.
The cause of the firs was not
definitely determined, but started
In the wood shed, and Is believed
to have been caused by sparks from
the chimney.
Fire equipment from Aumsvllle
wss called to assist In fighting the
fire, and probably prevented a
spread to other nearby buildings.
Today's fire was the second ser
ious fire here recently. I
Tientsin Submerged
By Flood Waters
Tientsin, Aug. 21 The toll of death and property de
struction leaped today as the worst flood in Tientsin's history
submerged much of the city under constantly deepening
water. With the flood crest be -
Ueved still to be at least a day away,
trie overflow of the swollen Hal riv
er and other streams put the city's
electrical facilities out of commia
slon and Isolated It part of the time
from the outside world.
An all-night rise In th flood level
Inundated the few remaining dry
spots In the British concession when
the water was three feet deep In
th shallowest places.
Telephone were dead. Small
boat were th only transportation
through street.
Many persons braved waters often
waist deep to carry out vital er
rands. Th water system still functioned.
but authorities warned that Its fail
Oslo Powers
Called to Meet
At Brussels
To Appeal to Great Pow
ers to Reach Settlement
And Avoid Conflict
(Br tht Unltid rnul
While Europe prepared to
day against the possibility of
a disastrous war. a strong
peace movement got undet
way.
The Oslo powers, so called
because they entered Into a
neutrality pact at Oslo, Nor
way, decided to appeal to the
great powers to reach settle
ment and avoid bringing on a
conflict.
The foreign ministers of
the Oslo powers Norway, Sweden,
Denmark, Finland, The Nether.
lands, Belgium and Luxemburg
were Invited by King Leopold of tht
Belgians to meet In Brussels on
Wednesday and draft an appeal.
Other Peace Moves
Cut off from the great agricul
tural and mineral resources of
Scandinavia especially Germany
would be hard pressed In any pro
tracted war.
The peace move followed on
from Rom, where Pop Plus XII
issued a strong plea for peace on
Saturday,
Bull another move was reported
In Bucharest, Rumania, where a
reliable Informant said th visit
last week of Count Stephen Csaky,
Hungarian foreign , minister, to
Germany and Italy were more In
th nature of an attempt to medi
ate between Poland and th axis
powers, rather than an effort by
Rome and Berlin to force Hungary
Into th axis for war.
Britain Prepares
On the other side of the picture.
Britain and Franc were fully on
the alert for trouble. It was an
nounced In London that "obstruc
tions" would be placed around stra
tegic harbors on th coast
Th cabinets of both Britain and
Franc were called Into session for
tomorrow to consider the situation.
Troop movements on both sides of
the Polish border Increased, ac
counting In part for British and
French concern. German troops
massed in the "treaty corridor" of
western Slovakia, leading from Aus
tria to Poland. It was denied that
the Germans were occupying Slo
vakia proper outside th corridor.
Poland massed troops on th Ger
man frontier, and Wat understood
to hav moved almost all Its force
from the eastern border facing Rus
sia. .
Kerensky Marries
Australian Girl
Martins Creek, Pa., Aug. 21 (TV-
Marriage of a man who Identified
himself as Alexander F. Kerensky,
premier of Russia's provisional gov
ernment in 1917 after the collapse
of th czarlst regime, was disclosed
today In this little Pennsylvania
community six miles north of Easton.
Justice of the Peace Harry A.
Stein said he married Kerensky and
Lydla E. Trltton of Brisbane, Aus
tralia, yesterday. Kerensky gave his
age as 58 and his bride 33.
Shown a picture of Kerensky tak
en some years ago, Stein said today
that's th same man, only h ap
pears older now."
-
ure was possible momentarily. The
food situation was acute.
As flood waters within the con
cession reached an average depth
of nine feet over most of the area,
British authorities commandeered
all small boats, and officers were as
signed to transporting lU and ex
hausted victims of whatever race to
hospitals or Improvised refugees.
Physicians were organised In a
publlo health corps and ferried In
police-manned boa's wherever their
service were most needed. Because
of a shortag of doctor, they war
able to attend only those In most
urgent need.
Many refugee! actually were
swimming muddy torrent la strug
gle to reach safety.