Capital
The Afternoon
Newspaper Leads
Tho Capital Journal Is first with
the latest news of the European
crisis, United and Associated Press
news dispatches. The only Salem
paper carrying both services.
Journal
Weather
Generally fair tonight and Sun
day, with fogs; gentle northwest
wind. Friday: Max. 70, mln. 44. Rain
.02 In. River -3.7 It. South wind.
Partly cloudy.
ft Saturday, October 21, 1939
51st Year, No. 251
Entered as second claw
matter at Salem, Oregon
Salem, Oregon
Price Three Cents
On Trains and News
Stands Five Cents
Nazis Wnk Turkey io
oland's Fate
an'
kh "i
Suff
-3
26 Removed
On Stretchers
From Harding
73 Injured on Storm
Battered Liner Bringing
War Refugees
By John A. Moroso, HI
New York, Oct. 21 (VP)
Twenty-six persons were re
moved on stretchers from the
United States liner President
Harding today when the
storm-battered vessel arrived
after one of the most tempes
tuous and dramatic voyages
in modern maritime annals.
Eyes were blackened, bones
fractured and bodies bruised
by tumbling furniture and
heaving decks when the 13,-
869 ton liner was caught by a howl
ing hurricane after rescuing the
crew of the torpedoed British
freighter Herons Pool.
73 Persons Injured
Altogether, 73 passengers and crew
members were Injured in the storm.
All except the 26 -ere able to walk
by the time the ship docked.
A cabin boy, Paul (Red) Johnson,
was washed overboard and lost
when a mountainous wave broke
over the decks.
Johnson, a recent graduate of the
University of Wisconsin, was making
his fourth trip on the ship. Because
of his death, the President Hard
ing's flag was at halt mast when
she arrived.
The hurricane, which had eluded
meteorologists as a result of war
time restrictions on weather reports
from ships at sea, struck the liner
approximately 800 miles east1 of Bos
ton Tuesday night.
Passengers said most of the Injur
ies were caused by one huge wave,
propelled by a 110-mlle-an-hour
wind. Some said it was 100 feet high.
A fleet of ambulances and stretch
er bearers waited at the dock when
the vessel arrived.
Wave Heels Ship Over
Most of those severely Injured
were In the smoking room aft when
the wave heeled the ship over to
starboard. Tables, chairs, smoking
stands and pottery slithered across
the floor, pinning passengers against
the wall.
Of the 898 passengers, S21 were
American citizens.
Paul van Zeeland, former premier
of Belgium, was in his cabin with
his wife and four children when the
wave struck. All were tumbled out of
their beds and piled in a heap
against the wall. Van Zeeland was
bruised and cut.
Capt. Sidney E. Batson, master of
the torpedoed freighter who was
rescued with his crew of 35, praised
the president Harding's commander,
Capt. James E. Roberts, for his sea
manship.
Crew is Praised
"I was inside the wheel house
when that big wave hit us and the
ship heeled over about 30 degrees,"
Captain Batson said. "The storm
blew up out of the southeast, Cap
tain Roberts handled his ship In a
fine, seamanlike manner."
W. R. Clarke, departmental man.
ager of the Firestone Tire and Rub
ber company in England who was
returning to take up new duties In
Akron, Ohio, told of seeing the sub
marine that sank the Herons Pool.
The U-boat had remained on the
scene and flashed its blinker lights
to attract the attention of rescuers,
he said. When the President Hard
ing approached the submarine dis
appeared. Officers at first thought the men
in the Herons Pool's lifeboats were
French and addressed them in that
language.
One of the bobbing seamen finally
bellowed "We're British are you
going to take us aboard?"
Clarke, a native of Orlando, Fla,
said the two lifeboats were scuttled
after the rescue.
Reed's Airplane
Found by Foresters
Eugene, Ore., Oct. 21 WP) Forest
Ranger Ralph Heath and logger Ed
Woods last night discovered the
wreckage of the army airplane from
which Second Lieutenant James O.
Reed parachuted to safety after the
motor failed yesterday.
The wreckage, scattered over 300
yards, was about 44 miles east of
here near the McKenzie river.
A passenger. Set. J. P. Shine, left
the plane at Bend. I
iif i
tike fA CvavU
Four Die In Collision Of U. S. Navy Planes Four U. S. navy fliers were killed when two navy planes
collided and burned over Murray Lake, near San Diego, Calif. The charred wreckage of the ships, with
a shoe of one of the men (in foreground), is shown. The planes were on a practice dive bombing
flight from the Airport Carrier Lexington. Associated Press Photo.
U. S. Gold MmFindNo
Washington, Oct. 21 (P) The
-I,'- 1aaw1 tnrlnn nnwail
treasury's gold hoard today passed
$17,000,000,000 67 percent of all the
governmental and central bank gold
reserves in the world,
The war has nearly stopped gold
shipments here temporarily, but
fear of it was largely responsible
for the present size of Uncle Sam's
gold stocks.. .- . .. . .J-.. ..j.
Before the war started, scared Eu-
ropeans sent gold here almost as
fast as they could in order to get
it to a place of safety, and already
this year about $2,900,000,000 worth
has come into this country,
That Includes, however, more than
a billion dollars worth which var
lous foreign governments have de.
posited In their own names in the
New York federal reserve bank for
safe keeping and convenience in
paying for American goods. The re
mainder of the foreign gold was sold
to the treasury for American dollars
which were deposited or invested in
this country, or used to pay for
American merchandise already ship
ped. The treasury .has its $17,000,000,-
000 worth of yellow metal buried in
vaults at Fort Knox, Ky., and var
ious federal reserve banks and mints.
Planes May Carry
Troops to Madera
Madera, Calif., Oct. 21 W) Move
ment of state troops by airplane into
tills California cotton strike area
was held out as a possible emergency
measure today after 18 arrests fol
lowed mass meetings of angry far
mers and striking pickers.
Adjutant General Patrick J. H.
Farrell said at Sacramento that if
local peace officers and state high
way patrolmen were unable to
handle the situation national
guardsmen could be sent by plane on
short notice.
Sheriff's deputies, moving through
a milling throng of between 2,000
and 3,000 strikers and sympathizers
at the county park here, made 17
arrests last night.
Decks Cleared for
Ousting ofEarle
By Harry Craln
The contest for state superintendent of banks having
this week been decided in favor of Arthur A. Rogers, a dark
horse who was not even a candidate up to 24 hours before his
election at the suggestion of Gov-
crnor Sprague, speculation as to
whether the skids are not being
greased under Hugh Earle, demo
cratic Insurance commissioner whose
term does not expire until June 30,
1941, occupies the attention of the
political dopesters.
In the Rogers appointment some
of them sense a maneuver to ease
Earle out of his $5,000 Job without
giving too much offense to his
friends in and around Eugene.
While Rogers' present Oregon
address Is Portland as state field
representatvie of the Federal Land
bank of Spokane his recognized
Oregon residence is Eugene, where
he was connected with the First
National bank for some 15 years.
The clamor for Earle's scalp from'
republican spoilsmen has persisted
since Oovernor Sprague took office
ineatv Jtanater
Tacoma, Oct. 21 UP) A police blockade, set up to capture
the kidnaper of George Beaty of Salem, Ore., put two youth
ful transients in the city jail after they were absolved of any
ponnection with the kidnaping but signed confessions they
stole an automobile in Portland Thursday night. The youths,
John Benedict, 24, of Midland,
Rural Relief
Program Sought
Washington, Oct. 21 (IP) The
Bankheads of Alabama, only broth
ers now serving in congress, threat
ened today to upset President
Roosevelt's effort to limit the spe
cial session of congress to neutral
ity legislation.
Speaker William B. Bankhead or
the house, and brother John of the
senate, appeared confident that
that they would be able to put
through an emergency appropria
tion of at least $50,000,000 for rural
relief in 29 states.
Usually the Bankheads keep in
close step with the president.
But this Is an emergency," ex
plained brother John. "We can't
let people starve through the winter
until congress meets in January."
Senator Bankhead started the
drive for rural relief funds by calling-
together more than a score of
senators from states hit by drought
and floods this year. He enlisted
the aid of his brother in organiz
ing a group of house members.
Representatives of the farm se
curity administration told the
group that crop reverses had caused
sudden demands from 115,000 addi
tional farm families for federal
grants or loans. Congress provided
$113,000,000 for these purposes this
year.
The senate group agreed that at
least $50,000,000 additional was
needed. Senator Bankhead said the
senate and house groups would
meet Monday to outline their stra
tegy.
last January. But It was not so
easy for the governor to remove
him without embarrassment. Earle,
who hails from Eugene, has a lot
of republican friends In Lane coun
ty and, following the defeat of
Governor Charles H. Martin who
appointed him for renomlnation
last year, turned his back on Henry
Hess, the left-wing democratic
nominee, took off his coat and went
to bat actively for Sprague,
He campaigned aggressively, al
though quietly, among both repub
licans and democrats In hts homo
county, and when the Sprague war
chest ran low last fall Is credited
with rounding up a substantial
sum In contributions in Eugene.
He Is Lane county's sole repre
sentative on the salary list of the
(Concludrd on Data 11. column
Trace of
Mich., and Jack Elmo Dixon, 18,
of Western Grove, Ark., were taker!
off a Northern Pacific freight train
here early today as 15 law enforce
ment officials searched for the man
who kidnaped Beaty in Salem yes
terday and forced hjm to drive to
Kelso.
Suspects Cleared
Of the dozen transients taken
from the freight only Benedict and
Dixon were placed in custody.
Beaty looked the youths over this
morning and said neither was his
kidnaper.
Willie Beaty and Sheriff Carl
Pritchard of Cowlitz county were
enroute, Benedict and Dixon were
questioned by police.
Detective Captain Cliff Osborne
said the youths signed confessions
they bought a 32 calibre revolver in
a Portland pawn shop Thursday.
Next, Osborne said, they toured
Portland used car lots, took an au
tomobile and abandoned it at Battle
Ground, Wash.
"Both of them said they started
to commit two holdups but one or
the other had demurred at the cru
cial moment," Osborne said. "Friday
they hitch hiked to Vancouver and
caught the freight train."
Osborne said federal authorities
had been notified and would investi
gate the possibility of a Dyer act
violation.
Pritchard and Beaty returned to
Kelso after viewing the two prl
soners.
Beaty Slill Away
George Beaty, who claims to have
been kidnaped In Salem at 12th and
State streets last night, and forced
to drive his captor to Kelso, Wash,,
after he had been robbed of about
$12, had not returned to Salem up to
noon today, nor had Vemon Myers,
2325 Center street, whose address
Beaty gave Kelso officers. A police
officer visited the Myers home dur
lng the forenoon.
Beaty has not been living In Sa
lem for some years, but makes his
home at Myrtle Point In southern
Oregon. He Is a carpenter by trade,
and during the World war served on
the Salem police force.
Salem police said they had no
knowledge of the case except radio
Information after Beaty had repor
ted to the Kelso officers, and press
dispatches from that city.
British and Neutrals
Heaviest Losers
(Br th United PrMO
Torpedoing of the Swedish steam
er Guetav Adolf off the Shetland Is
lands today brought ships lost since
the outbreak of war to 75.
The British have lost 39 merchant
vessels, the French 6, Ocrmans 4 and
neutrals 26.
Law of the Ouslav Adolf, 1,450
tons, brought the total tonnagn lost
to 311,42.1. British tonnage lost to
tals 103.071: French 42,179: German
'14.764: neutrals 60.869.
Senator Blames
Russia for Loss
Of Liner Athenia
Reynolds Says Stronger
Circumstantial Evidence
Against Soviet
Washington, Oct. 21 (IP)
Senator Reynolds (D.-N.C),
announcing he was opposed to
repeal of the arms embargo,
told the senate today that, in
the sinking of the British lin
er Athenia, "the finger of
guilt more clearly points to
Soviet Russia than to any oth
er nation."
"Fantastic though it may
seem," the North Carolinian
asserted, "it is certainly less
fantastic than some of the other
startling surprises of the past sever
al months which already are proved
beyond any question.
"While at the moment most Amer
icans believe that Germany sank the
Athenia, there has not been pub
lished a shred of concrete evidence
to prove this."
Case Against Russia
"But in the absence of concrete
evidence," Reynolds continued,
"there is a much stronger circum
stantial case against Russia than
any other nation. . . . Let us re
member that the two principle en
emies of Russia are Germany and
Great Britain, What could be sweet
er than to help shove them into a
life and death struggle from which
Russia could pick up the profits
with little or no cost to herself?"
Reynolds said that if the Russians
did sink the Athenia "they must
have chuckled with glee when they
figured the entire world would blame
It on their German ally and not on
the Russians."
Repeal Unwise
The North Carolinian, who had
not previously announced his posi
tion on the administration neutral
ity bill, said that while he favored
many of its provisions he thought
repeal of the arms embargo would
be "unwise and dangerous."
"I will be compelled," he added,
to follow what I conceive to be my
obligation as a senator of the Unit
ed States (and not of Europe and
the world) to vote against such re
peal." '
Floating Mine
Adrift in Pacific
Portland, Oct. 21 OJ.Rl The U. S.
navy hydrographlo office In Port
land today said the hydroeraphie of
fice In San Francisco had broadcast
"at least twice," warning shipping
of a floating mine about 1400 miles
out in the Pacific from Tillamook.
L. J. Lason, assistant to Lieut.
George Knucpfer In the office, said
the information on the broadcast
was received from the Puget Sound
navy yard, at Bremerton, Wash.
Larson said the last report broad
cast by the San Francisco office was
on October 19 but that no subse
quent report had been given, in
dicating that the mine apparently
was still In the region.
The broadcast said:
"All ships and stations floating
mine, latitude 45 degrees 55 minutes
north; longitude 158 degrees 46 min
utes west. Wind southwest, barom
eter 28.82."
Italy Signs Pad
To Remove Tyroleans
Rome, Oct. 21 (U.R) Italian For
eign Minister Count Galcazo Clano
and German Ambassadoi Hans von
Mackensen today signed an accord
governing the transfer to the relch
of German nationals residing In the
the upper Adlge or Italian Tyrol.
The accord supplement previous
understaTuHlnna between Premier Be
nito Mussolini and Fuehrer Adolf
Hitler providing for the re-settlement
of the German minority In
the Tyrol.
Decision for such re-settlement
was reached last July after Musso
lini and Hitler had agreed that the
Brenner pass was "sacred" and that
there would be no friction over the
minority question.
Fugitive Arrested
Portland, Oct. 21 (IP) Walter
Trent Reed, 28, was arrested last
night by Detective H. J. McCormlck
as a fugitive from the Washington
reformatory at Monroe. McCormlck
said he escaped September 15.
British Minister
On tlines Stra tegy
Hore-Belisha Says Russia Has Checkmated
Germany in East Allies to Use Waiting War
Tactics No Peace Proposals Considered
London, Oct. 21 (IP) War Secretary Leslie Hore-Belisha
said tonight that Russia had checkmated Germany in the
east. He indicated the allies would use "waiting war" tactics
to ngm uermany to tne Iimsh. "No peace proposals which
rely for their sanction on a broken word can be considered,"
Poles to Vote
Red Plebiscite
Moscow, Oct. 21 (VP) Propaganda
Is going full blast for tomorrow's
"plebiscite" in the Polish western
Ukraine and western white Russia,
former Polish territories occupied
by the red army after the German-
Russian partition of the land.
Delegates will be elected to
assembly, which in turn will vote
whether to Join the soviet state
through annexation to the Ukraln
ian and white Russian constituency
republics of the U.S.S.R.
The result was a foregone conclu
sion as were Adolf Hitler's famous
plebiscites.
Former prisoners, peasant women
and (actory workers were among
the nominees for the assembly,
Agitators throughout the region
were urging a vote "for a new and
happy life with the U.S.S.R."
A Tass (official soviet news agen
cy) dispatch from Kaunas denied
a report attributed to the Lithuan
ian newspaper Twenty Amgeus
that almost 200,000 Ukrainians had
escaped, from the territory, occupied
by the soviet army into Oermany.
Hitler Confers
With von
Papen
Berlin, Oct. 21 (U.R) Fuehrer Adolf
Hitler resumed conferences today
with Baron Franz von Papen, his
ambassador to Turkey, on German
procedure to be lohofred. as resutt
of Turkey's action in signing a pact
of mutual assistance with France
and Britain.
, It was expected that after an
other conference with Hitler, Papen
would return to Ankara with fresh
future relations with Turkey. Hitler,
Instructions governing Germany's
It was said, intends to consult Italy's
Premier Benito Mussolini on the
Ankara treaty as soon as he has
completed an analysis of It.
Nothing has been revealed re
garding Hitler's meeting with Pap
en, who returned to Berlin last
night to report personally to the
fuehrer. Newspapers have not men
tioned Papen's presence in Berlin.
Reports were circulated that Ger
man-Italian consultations, handled
by Hitler and Mussolini personally,
would be started tomorrow, but it
was believed that Hitler intended
to study reports of his ambassadors
at Rome, Moscow, and Ankara, Tur
key, before he initiated formal ne
gotiations with Mussolini.
Germans Claim
Successes at Sea
Berlin, Oct. 21 (U.Kl Numerous
German warships are active outside
home waders and have. Indicted
casualties on British shipping far
greater than the British have ad
mlttcd, the semi-official DNB news
agency announced tonight.
"German surface ships and sub-
marines have conducted successful
operations in all sum and British
warships sent out against them
have not been able to prevent their
success Increasing from week to
week," the statement said.
"It is not surprising that the Brit
ish press should remain silent so
far as possible regarding these suc
cesses. We are In a position to
state that the loss of trading ves
sels carrying contraband (s consid
erably greater than Is officially ad
mitted In England."
Swedish Steamer
Torpedoed Today
Stockholm, Oct, 21 (U.R) The
Swedish steamship Gustov Adolf
wos torpedoed off tho Shetland Is
lands today. Tho crew of 10 was
saved by the Norwegian steamer
Blcny.
The Gustav Adolf, 1,450 tons, was
bound for Englnnd, Her home port
was Gothenburg.
ne said, in a broadcast on the prog
ress ol the war, ending its seventh
week, the former newspaperman
said:
3 Courses Open
"Three courses are open to nazl
Germany to try to smash through
by land, sea and air; to remain qui
escent in the hope we will prema
turely take up the offensive against
them; or to lure us into the discus
sion of specious terms of peace."
As for the first course, he contin
ued, "recent military experience
snows that an offensive against pre
pared positions is unprofitable . .
on me western front there are
strong defenses and they become
stronger every day. The enemy will
pay dearly for any massed attack
upon them."
In words that recalled Prime Min
ister Chamberlain's outline of strat
egy as the art of concentrating a de
cisive force at a decisive point at a
decisive time, Hore-Belisha said,
"Our commanders are not likely in
advance of the timr that suits them
to unnecessarily risk the lives of
those who compose our armies."
Baltic Now Lost
Of Germany's ambitions he said
"Poland was but an item. The Bal
tic states were to be dominated; but
from 'these, German nationals are
now in retreat. Russia has claimed
this sphere of Influence. The corn
fields of the Ukraine were coveted.
Russia has made sure of this har
vest. Through Poland nazi Germany
was to have an entrance to Ruman
ia. This entrance had been barred
by Russia."
He referred belatedly to the new
French-British-Turkish pact signed
Thursday.
The -wai minister described the
British expeditionary force in France
as "the vanguard of the great army
now training In Britain. This In Its
turn will be Increased by militiamen
in their age groups another 250.000
of these we have already taken
50,000 . . . nazl Germany must watch
this gathering momentum and rea
lize that time is on the side of
France, of Britain and the empire."
Hore-Belisha said "the final mag
nitude of our effort will depend on
the extent to which factories can
supply equipment and munitions for
our men."
Planes Driven Off
In Nancy Attack
Nancy, France, Oct. 21 (P) Anti
aircraft guns fired at planes during
an air raid alarm which lasted from
10:16. to 10:45 a.m. today, military
sources disclosed. The planes were
reported flying north at high alti
tude. Warning sirens excited the resi
dents of Nancy, but the alarm ended
without an air attack.
Nancy is 70 miles west of Stras
bourg, which Is on tho Rhine frontier.
British Inflict Losses
On German Raiders
London, Oct. 21 (IP) The air ministry announced tonight
that three of 12 German airplanes attacking a British North
sea convoy today were shot down and another was forced to
alight at sea. There were no British
casualties and no convoy or escort
ship was damaged, the ministry said
Appearance of unidentified air
craft off England's east coast caus
ed air raid warnings In the Hull and
Grimsby areas.
A brief air ministry communique
said warships of the convoy opened
fire on the nazl planes and "our
fighters (pursuit planes) inflicted
some casualties on the enemy."
The announcement said:
"Enemy aircraft were sighted this
morning by a convoy In the North
sea.
In rcsponso to a signal, fighter
aircraft were dispatched and the
enemy made off.
This afternoon an actual attack
was mado on the convoy by enemy
aircraft, The escort vessels opened
fire and our fighters Inflicted casu
alties on the enemy."
Hold Russia
Free to Seize
Dardanelles
Authoritative Berlin
Sources Say Turkey to
Be Carved Up
Berlin, Oct. 21 UP) In
formed nazi circles intimated
today that Turkey may be
come another Poland.
The intimation and it was
no more than that; was based
on the fact that Izvestia, Sov
iet Russian government news
paper in Moscow, said Russia
had no reason to regret Tur
key's action in signing a mu
tual assistance pact with
Great Britain and France.
Authoritative somces said "Rus
sia does not need to regret Turkey's
new alliance because now she la
free to occupy the Dardanelles if
she desires."
Izvestia's editorial was reproduc
ed In the German press.
To Seize Straits
Commentators pointed out that
Russia throughout her history had
resisted British attempts to con
trol the Dardanelles, strategic gate
way to the Black sea.
They said that, as long as Turkey
remained neutral, Russia could be
satisfied to leave the Dardanelles
in her friends' hands.
But now that Turkey definitely
had allied herself with Great Bri
tain, they asserted, cause was given
for Russia herself to assume mas
tery not only of the strategic gate
way, but-of Turkey, ." " ,
They said they believed Turkey
probably would be carved up as
Poland was by Germany and Rus
sia, Challenge Accepted
Meanwhile, a release yesterdav bv
DNB which said that the challenge
of Britain and France in the Euro
pean war had been accepted was
described authoritatively as Intro
ducing no new element into the ex
isting situation.
Officials said it was Intended
merely to combat constantly recur
ring reports Germany was on her
knees begging for peace.
The communique today acknowl
edged that French troops held two
heights close to the border in the
Warndt forest region west of Saar
bruecken, but said these were the
only French holdings on German
soil.
Athenia Campaign
A German campaign to convince
the world that the British were t
blame for the sinking of the liner
Athenia grew more vigorous, mean
while. Berffn morning newspapers, with.
unanimity Indicating official in
spiration, devoted their entire front
pages to alleged disclosures of
Gustav Anderson, a United States
citizen and a survivor of the sink
ing. "Athenia swindle unmasked be
fore American investigating com
mittee," Hitler's Voeklscher Beo
bachtcr headlined a story ascribing
the attack to three British destroy
ers. Moscow, Oct. 21 (P) The govern
ment newspaper Izvestia today as
sailed the new Britlsh-Frcnch-Turk-lsh
mutual asststt-nce pact, assert-
(Concluded on pnge 9, column 8)
Earlier the ministry had announc
ed that "two unidentified airplanes
were sighted off the east coast of
England about 2 p.m. and fighter
aircraft were sent up to Intercept
tJjero," The statement dJd not say
whether any contact was made.
The communique concluded :
"Air raid warnings wero sounded
In the Bull and Grimsby areas at
about 2:30 and the all-clear signal
was given in both areas about half
an hour later."
Hull and Orimsby are on opposite
sides of the Humber Estuary,
At one coast town the drone of
aircraft and the sound of gunfire
was heard before the warning was
given. Crowds enroute to football
games went to shelters. On ono foot
ball field three players who wero
air raid precaution wardens left for
duty and the game was deterred.