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Tcmperuture
Highest esterilay 7fi
Lowest this morning .. 5'!
Precipitation last 24 lira... trace
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MEDFORD
Tru une
Full Associated Press
Full U fress
Thirty-Third Year
MEDFORD, OREGON, WEDNESDAY, MAY 11, 1938.
No. 43.
bbws sliiJgasWf QaBBBMeasMataaaaasr' assssaifSW
MMffl RAPS GAfffAKN AttBAIMH
i i i 1 4
The
Capital
Parade
By Joseph Alsop
and
Robert Kintner
Copyright 1!o7. by The
North American News
' paper Allinnce, luo.
STORMY Ll'NCIl MAY
LEAD TO PBACE
mi.LKii: si'i'nNs im.an
FOR NKl'TRAI. L'MIMICES
SIHSTITITK I'KOVIHKS
1'OK UTILITY COMMIT ! IX
WOULD F.I.IMINATB
Wll.l.KtK. I.H.IKNTHU.
WASHINGTON, Mny 11. At a
small and rather stormy lunch tn l
New York's financial district Bcveral j
weeks ago, there began tho se
quence of events which may noon
bring final peace between the public
utilities and the fcdernl government.
The luncheon meeting was colled
by the powerful broker, Paul Shields,
who Is the only real White House
Crony In Wall street. The other men
present were the three most con
spicuous leaders of the utilities busi
nessWendell L. Willklc, of Com
monwealth and Southern; James F.
Fogarty. of the North American com
pany, and C, E. Grocsbeck of Elec
tric Bond and Share.
Shields, who spends half his time
shuttling from New York to Wash
ington and back, trying to make
peace between government and busi
ness, suggested to the utilities men
that independent umpires be ap
pointed to see fair play between the
utilities and the New Deal. His no
tion was that lending Industrialists
unconnected with the utilities ought
to do the Job.
t Unfortunately. Shields Is suspected
of a connection with -a financial al
liance, headed by Dillon, Read and
company and Harrison Williams,
which would like to elbow J. P.
Morgan and Company out of the
utilities field. Willklc, a Morgan man,
was so doubtful of the Shields mo
tives that he blew up. energetically
and loudly, on the spot.
The lunch ended atormily. For
tunately, however, it was only a
starter. The Shields Idea was taken
to the SEC In Washington, where
Commissioner Robert E. Healy. chiel
of the utilities division, greatly sur
prised everyone by repeating the
Willkie arguments against tho in
trusion of "outsiders."
Therefore, a far more sensible
plan was resorted to. It was decided
to form a committee of executives
from thirteen of the largest utilities
holding companies, with the two
fold purpose of working with the
SEC In the application of the hold-
(Continued on Page Six
FLOOD CONTROL HAS
WASHINGTON, May 11. (AP)
Representative Sccrest (D-Ohio) said
today the house flood control com
mittee had approved tentatively a
$50,000,000 flood control and conser
vation program tn the Willamette
valley of Oregon.
A committee member. Secrest said
the group had Included In a $400.
000.000 national flood control pro
gram a $12,000,000 authorization to
Initiate the Oregon works, based on
recommendations of the army engi
neers. 4
SIDE GLANCES
by
TRIBUNE REPORTERS
The forest service getting Blmerl
Jarvt to go to church by assigning
him to give a talk at a church meet
ing. Florence Scherrer getting a night
view of the carnival from a plane
3000 feet up. she being thrilled no
end.
AH Ban well eirtted at sight of
groups of women walk in a: around
town, he fearing he had slipped up
on a convention.
Horace Bromley out !n the sun
Khtne seatn and looking better than
he would sdrptt he felt.
Mary Morrtsey clcdhopplng to a
"Little Clodhopper" rehearsal, she
playing the title role in the Thun
and Fri. night show.
Florence Bos urn havlna a great
time playing with a cougar cub. she
trying to start ft circus animal act.
John Ead ignoring his 86 vein
by climbing around on his roof to
zniks repairs thereto.
HE
FIE
IE1EDJL0 LIE
Governor Says Statement Is
Typical of Unscrupulous
Campaign i Being Waged
in State Quotes Farley
May 20, Mr. Farley!
PORTLAND, May 11. (API
The Oregon Journal said today
that in a telephone conversation
with James A. Farley, postmaster-general,
it was told:
"The Democratic national com
mittee nor the administration is
not interfering in the Oregon
Democratic primary."
Farley's answer was in respons?
to a question about a report that
the administration intended to
attack the Democratic Oregon
governor, Charles H. Martin,
"By the way, when Is the Ore
gon primary?" Farley asked.
It is May '20.
SALEM. May 11. (AP) Govornor
Martin charged today that a state
ment that he sent a friend to Wash
ington to seek endorsement of the
national administration was "appar
ently Inspired by political conuuDla
tors" and that It was "an unmitigat
ed lie."
He bald the statement was "typical
of the character of the dirty, un
scrupulous campaign being waged
against me."
In a prepared press statement, the
governor isaid:
"In view of the cordial relations
with tho president and the adminis
tration, there Is no reason to do so.
"It never ooourretl-'to'mc tff-i
the national administration to inter
vene in a local state election where
United States government officials
are not involved. The public should
be prepared for a repetition of many
similar lies."
The -governor quoted again from a
letter written March 22 by James A.
Farley, Democratic national chairman
who said "you have done a splendid
job, governor, and I am sure 'hat
the citizens of your state realize it."
The charge that the governor sent
an emissary to Washington first ap
peared In a syndicated, daily column,
BONNEVILLE SALE 10
UTILITIES SAYS HESS
ALBANY. May 11. (AP) Henry
Hess, candidate for the Democratic
nomination for governor, charged
last night that his opponent. Gov.
Charles E. Martin, was planning to
sell Bonneville dam to the utilities.
Asserting that the people would
be "sold out" without question If
Martin was re-elected, Hess declared
that an attempt already has been
made to sell the dam to Henry
Ford, automobile magnate, for $5,000,
000.
Hess answered an old campaign
argument on the withdrawal of Dr.
J. F. Hosch, Bend, from the race
shortly before the close of the filing
period by saying there was no col
lusion with Dr. Hosch. Hess said
Hosch told him he would not file if
he (Hess) did. Coincident with Dr.
Hoechs' withdrawal. Hess filed.
Dozen Leningrad Clergymen
Arrested in Purge Program
MOSCOW, May 11. ,p The arrest
of more than a dozen clergymen In
Leningrad province on charges of
"Fascist spying, debauchery and plot
ting against the Soviet regime" was
reported today In the At hies t news
paper Bezbozhntk.
The newspaper said a former met
ropolitan, Seraflm Ruzhentsoff. and
two bishops were among the Ortho
dox clergymen Involved. Ruzhentsoff
was accused of debauches with altar
girls. The bishops were changed with
corruption of nuns.
It also mentioned Ad vent 1st and
Baptlnt pastors, who were said to have
actd as spies for Germany.
Some clcrnymen were accused of
writing antl-Sovlet articles against
collective farming. Others were rharg
ed with inventing "anti-Soviet mlr-
j acles.
The clergymen were alleged to have
tried to persuade people that arrest -'
ed churchmen were "martyrs of the
j faith, the newspaper said.
It added that "only ft few fanatical
.vomen believe them.
1 TUe boviet govenuueot kxlay re
Revolt Attempt
Chiloquin Pooch
Cured Of Fits By
Bullet In Head
CHILOQUIN. May 11. (API
Because his dog had fits, lake
Polin, Chiloquin storekeeper, hired
a man to take the animal into the
woods and shoot It. The man
fired a bullet Into the dog's head,
and the dog took the count.
Tho other day the dog Jogged
into the Polln store. Mrs. Polin
fainted. Subsequent examination
showed that the bullet had only
pierced the hide on the dog's
skull.
Bruno hasn't had a fit since.
REVISED TAX BILL
TO WHITE HOUSE
WASHINGTON, May 11. (AP)
Congress sent a $5. 300 ,000 ,000 tax
revision bill to the White House to
day for President Roosevelt's signa
ture. The house completed action on the
measure, designed to case taxes
about which business nas complain
ed, by approving a conference report
which compromised differences with
the senate.
The compromise measure retains
only a vestige of the wldely-crltlclzed
undistributed profits tax and re
vamps the present system of capital
gains levies.
JXL-Uie aggrogaU-U-lnipo!B-no ad-j
dltional tax burden but merely pro
duces the same amount of money as
the present law.
The revised levy on undistributed
profits would apply only to corpora
tions having Incomes above $26,000.
They would pay taxes of 16 i to. 10
per cent. The more profit they
turned over to stockholders in the
form of dividends, the less taxes they
would pay. Firms distributing all
their profits would pay the 16' per
cent minimum.
Companies having Incomes up to
$25,000 would pay no undistributed
profits levy simply a corporate In
come tax ranging from 12, to Ifl per
cent.
Under existing law all corporations
pay an Income tax of 8 to 15 per
cent and a surtax of 7 to 27 per cent
on their undistributed earnings.
LECTURE SERIES .
WILL OPEN HERE
First of a series of classes to be
conducted by Worth Smith and
Genevievee Behrend will be held In
room 415 of the Hotel Medford at
2:30 tomorrow afternoon. The class
was formed following the lectures
given by the two authors In Town
send hall Monday night.
Another class will be held In the
Hotel Medford at 8 p.m. tomorrow.
Saturday at 2:30 p.m. Miss Bchrand,
& mental scientist, will address a
class of women only. Saturday eve
ning at 8 Mr. Smith will give a
lecture on "The Great Pyramids."
Next week classes will be held at
B p. m. Monday, Wednesday and Fri
day. jected the 1038 program of the Acad
emy of Sciences with the criticism
that It was neglecting the application
of research to Industry.
"Pseudoadenttsts and wreckers"
who write books on "useless topics"
were criticized In a government state
ment which found there was "still
ft lot of conservatism and cold seed
emlsm" In the academy.
Implying that some members were
old fogies, the government ordered
that the academy's ranks be opened
to young scientists.
The government ordered simplifica
tion of wage scales In the automobile
Industry, seeking to Increase and Im
prove output. The Industry has been
growing steadily and made 200.000
cars In 1937. but deficits still are re
ported.
Confusion In wsge scales was blam
ed for heavy labor turnover, with
waste In production and defective
parts. Forty different wage schedules
were reported In the Stalin plant and
' twenty in the Oorky plant. Sonv fore
j men as a remit received lew than
.men under tiitm.
SPAIN'S DELEGATE!!
NS1STS ON
OF
Britain and France Bitterly
Attacked in League Meet
ing 4 for Bargaining With
Italians Russia Aids
GENEVA, May 11. (AP) Govern
ment Spain's delegate tonight halted
the steamroller which Britain and
France have been operating in the
current session of the League of
Nations council.
Julio Alvarea del Vayo, Barcelona
foreign minister, bitterly attacking
the two powers for their bargaining
with Italy, refused to let the ques
tion of intervention in the Spanish
civil war be run through the coun
cil without full consideration.
Maxim Litvlnoff, Soviet Russia's
foreign commissar, and William J.
Jordan of New Zealand rushed to
the defense of the Saplard's demand
that the council take the question
of intervention out of the hands of
tho 27-natlou non-intervention com
mittee In London.
Their stand blocked Anglo-French
plans to complete discussion of the
8panish war tonight. The program,
in which a majority of the council
had agreed obviously was upset.
After brief consultation with Brit
ain's Viscount Halifax and Joseph
A. C. Avenol, league secretary-general,
the chairman announced the
question of Spain was adjourned to
a later meeting. V , . t
'"' However, last minuto British and
French "corridor victories' made
Halle Selassie's chances of prevent
ing the two big powers from recog
nising Italy's conquest of his former
realm slimmer than ever today.
Ethiopia's king of kings was on
his way here to make a personal
appeal to the league council, but
before his train arrived It was learn
ed that Soviet Russia and China had
moderated their stands against the
recognition plan.
F. D. R. POWERLESS
IN HELIUM SALE
WASHINGTON. Mnv II IAW
The White House said today that
President Roosevelt was powerless to
settle the controversy over th Mio nr
helium to Germany growing out of
me reiusai or secretary ickes to ap
prove a sale contract wfthnut fugnn.
tees against Its use In foreign mili
tary operations.
The export of the gas to Germany,
it was pointed out, requires the
unanimous consent of the six cabinet
officers on the national munitions
control board, and Ickes Is one of th
board members.
The announcement wa mni attr
& conference between tho nrHnf
and high army, navy and interior of-
I1C1B18.
The whole question now goes back
to 'the munitions control hnnwl onri
Its next meeting Is expected to render
a lormai decision.
Secretary Ickes said he would at
tend the meeting with an open mind,
but would not say whether there was
any likelihood that he would change
his position against approving the
contract.
The state department already has
approved the sale.
TOWNSEND PAYS,
SUIT CALLED OFF
SAN FRANCISCO, My 11. IAP)
The 1SO.OOO lltwl suit brought by
Edwtrd J. Margett agnliut Dr. T. E.
Townsend, originator of the old age
pension plan, wai acttled out of
court today Juat after a Jury asaem
bled to try It In federal court.
Attorneys declined to reveal the
monetary consideration of the agree
ment but It wa reported to be Be
tween ,7.500 and 110,000.
Margett alao charged Dr. TowTuend
with accusing him of misappropriat
ing funda for bit own use.
Double Teeth
HAZELTON. Pa.. May 11 (API
Thirteen-year old Donald Klnaey, of
St. Johns, haa to do double duty
every time he brushes his teeth. He-"
ot a double row of teeth In bU upper
Jaw. The rows contain 15 teeth one
more than is normal for the average
lad o( bis ag
of Brazilian Nazis Is Short-Lived
Police Clash With Auto Pickets j PRESIDENT VARGAS
ik I ::Onrf U V
i
TO
BATTLE GALLOWS
SEATTLE. May 11. ( AP) Detec
tive Chief Ernest Yorls said today i
Castro Earl Mayer declared he would
"not lift a finger" to save his 72
year old mother, Mrs. Mary Eleanor
Smith, from the gallows for tho Jamr?
E. Bassctt slaying which sne laid
Mayer committed in her presence.
"She got herself Into this mpss
now let's see her get herself out,"
Yorls quoted Mayer as replying when
tho officer informed him full admis
sion of tho killing might save Mm.
Smith's life.
Yoris said he told Mayer "It may
"he that If you lead u to BnPHOtt'a
body It wilt save your mother's life."
Mayer, who signed a confession or
the Bassctt killing, hut later repud
iated It. refused Yorls suggestion and
berated his mother for having con
fessed the 10-year old crime, the de
tective said.
A few minutes later Yorls sum
moned Mrs. Smith and told her of
Mayer's declaration.
"I can't believe it my son would
not do a thing to harm me," Yoris
quoted her as replying.
Yorls said Inter ho believed B-ts-sctt'a
body never would be. found.
"I don't think she knows where
It is and he won't tell," Yorls said.
"I see no reason for pu rsui n g ,hc
search further. We have sufficient
evidence to send at lea:t Mayer to
the gallows."
LEGION LEADERS
O. E, Palmateer, state commander
of the American Legion, and a group
of other executives, will hold con
fe rentes in Ashland and Or ants Pafaa
Friday, It was announced today by
Don Newbury, commander of Medford
post.
A luncheon-meeting will be held
for the visitors In Ashland and
dinner-meeting tn a rants Pass, mem
bers of the auxiliary being invited.
Mr. Newbury asked that all Legion
naires make arrangements to attend
one or both of the meetings as Im
portant matters are to be reviewed.
Anyone wishing transportation to
Ashland or Grants Pass should com
municate with Horace L. Bromley,
post adjutant, at once. Mr. Newbury
said.
Coming with Mr. Palmateer are E.
L. Knight, state vice onmmnndr.
Carl Moser. state adjutant, Robert
Robinson, department Junior base ha 11
chairman, George Rauch. department
boys state chairman, and Al Green
walt, department chairman of the
"On To Los Angeles" committee.
I'hfwnU ( luh To Meet
PHOENIX, May 11. (Spl) The
Phoenix Thursday club will meet
Thursday, May 12, at the home ot
Mrs. Guy Coblelgh with Mrs, H. Van
Gordon assisting
T s if V) 1
Swinging eluhfl sent two policemen and a picket to ft hospital hs
polln; forced u path thrmiKli ft l ulled Automobile Workers picket line Into
the MlrlilKiin Steel Canting rumpnny plnnt In Detroit. Neverul others re
quired first uld treatment. Clubs mid fUts were swinging as this picture
uus taken.
SPEND, LEND PROGRAM
THREATENS SOLVENCY
IS REPUBLICAN VIEW
WASHINGTON, May 11. (API
Republicans attacked the administra
tion's lendtng-spcnding program as a
"throat to nntlonnl solvency" today
while a Democrat declared it was
"much better" than any previous re
lief measure.
The Republican attack centered
around an appropriations committee
minority report written by Represen
tatives Tabcr and Bacon of New York
and Wigglcfiworth of Massachusetts.
The report distributed to the press
by the Republican national commit
tee referred to current business con
ditions as n "Roosevelt depression.'
Representative Maverick (D., Tex.,
replying on the house floor, said such
criticism "doesn't solve aiy of the
economic Ills of the United States."
He charged the critics with having
no program of their own.
Another reply to Republican criti
cism came from Representative Hook
(D.. Mich.). He declared tho' United
Slates had had a federal spending
program In every administration since
the days of George Washington. '
He said grants of land to the poor
and Jobless of tho cities were as much
relief measures as appropriations for
the needy In recent years.
y ASK PROBE OF
E Ml
WASHINGTON May 11. (AP)
Tho senate civil liberties committee
has received "hundreds of requests"
to Investigate the New Jersey political
organization headed by Mayor Frank
Hfigue of Jersey City, Senator Thomas
(D-Utah) said today.
Thomas a commltteo member, said
requests have come from wMely
scattered sections of the country and
even from Jersey City.
12,000 Worthless Checks
Stall Creditors for Years
CHICAOO. May 11. (AP) Walter
11. Wood. 65-year-old plumalng
equipment executive, was under ar
rest today after telllmi an amazing
story of check writing.
Ayl.tant State's Attorney nichard
B. Austin wld Wood told of writing
13.000 worthless checks during the
past year In an effort to keep ahead
of hla creditors.
Arraigned before Judge John J.
Rooncy In felony court, on thre,
charges of operating a confidence
game, Wood was released on a 1.000
bond.
The prosecutor said Wood's finan
cial troubles began three years ago
after he had auflered a I2.000 fire
loss. For several months, he added.
Wood cashed more than 1.000 checks
a mouth fur as much as 15.000 a day
11 -"'V
CAUSrHEM DAMAGE
SHANGHAI. May 11. (P) Chinese
reported today 4.000 houses had been
damaged and 300 civilians killed and
wounded In an air attack: on 8u
chow, baso of the huge Chinese army
defending the Lunghat railway.
Moro than 300 bomba were said to
have been dropped on the city, leav
ing sections of It burning fiercely,
Japnncso said largo stores of military
supplies hod been Ignited.
Jnpaneso warships and planes also
continued Intonalve bombardment of
Amoy, gnteway to Fuklen province on
the south China coast, where the
United States gunboat Anhevllle and
the British destroyer Diana stood by
ready to evacuate Americans and
Britons If necessary.
Fires wcro reported spreading rap.
Idly through Amoy while 30 foreign
ers. Including 15 American mission
aries, watched In comparative safety
from Kulnngsu Island nearby.
The United Statoa destroyer Edsall,
ordered from Tslngtao to Amoy. was
due at Shanghai tomorrow for quick
refueling. An unverified report aald
the cruiser Marblehead, en mote
from Manila to Hongkong, also had
been ordered to Amoy.
Pompoon Prances
To Dixie Record
BALTIMORE. Md., May 11. (AP)
J, H. Louchelm's Pompoon. making
his first start since finishing third
to Stagehand and 8ea-Blseult In the
Santa Anita handicap, today hung
up a new track record for a mile
and three-sixteenths as he won the
tao.OOO Dixie handicap at Plmllco In
1:56 4-5.
llahv Hialila To Dentil
HAYWARD, Cal.. May 11. (AP)
Eleven-year old Imlko Nlhel died to
day of burns received when she fell
Into the boiling water In the center
of the family's huge bathing tank.
Austin aald ha kept cashing checks
at currency exchanges to obtain
funda to pay debts and cover previous
checks on his depicted account
A 48-hour period was required to
clear a check. By the time It bad
cleared. Austin said, new checks had
been cashed to cover It.
Austin said Wood's financial status
was disclosed when operators of a
currency exchange sent a check to
the bsnk to be certified Instead of
dealing It In the usual manner. He
estimated creditors would lose 18200.
Wood Is president of the Modern
Equipment company and headed the
bankruptcy division of the federal
department 'of Justice In Chicago
from 1031 to 1938. He was charged
with operating a confidence game.
LEADS IN
OF PALACE
Uprising . Seen ' Inspired by
Outlawed Green Shirt
Faction Some Killed
and Hundreds Arrested
RIO DE JANEIRO, Brazil, May 11.
(AP) President Qetulto Vargas,
pistol In hand, personally led defen
ders of Ouanabara presidential palaca
todAy as government forces swiftly
smothced a fascist revolt against his'
authorltalan regime.
An undetermined number of rebels
were killed or wounded and hundreds
were arrested.
The short-lived uprising. Implied
by the outlawed lntegrallst (dreen-
shirt) faction, flared and died In the
heart of the capital, where street dis
orders and futile assaults on public
buildings .marked Its Ineffective
course.
Martini Iavi Decreed
Martial law was decreed, effective
at noon today. -
Authorities said Admiral Edusrdo
Tavares had been arrested as a par- .
ticlpant In the uprising.
Police declared they had advance
knowledgo of the plotted rebellion
and said they had ovon slipped
agents Into the ranks of the Integral-,
lets to follow more closely progress
of the scheme to overthrow Vargas'
totalitarian ruler of Brazil since hi
solKure of power In his eoup of Nov.?
in, imytrta;f--; - '.' ". (...:.
' A gun fight at the presidential pal- r
ace between besieging fascists and '
Vargas" household staff highlighted
the abortive rebellion..
For three and a half hours the
heart of the city was In agitation,
with traffic disrupted and police de
tachments ranging the danger son
suppressing revolutionaries.
War Minister Wounded
Firing echoed through downtown
Rio De Janeiro and uncounted casu
alties resulted from the fighting. The
minister of war. General Eurico Cas
par Dutra, was wounded slightly.
The rebels also made an attack on
the Pan-American Airways airport
near the center ot Rio De Janeiro but -were
beaten off,
The only brief measure of success
the Orcenahlrt had was at tho naval
arsenal, which was captured and held
briefly.
Then a bayonet charge by a fore
of marines brought rebel surrender at
that point and the rebellion col-
lapsed.
The war ministry stated that Pllnlo
Salgado, leader of the lntegrallst,.
hesded the rising, but that the actual
field commander was Belmlro Valde. .
verde, member of the high command
of the party before Its dissolution.
Salgado has been a fugitive sine
March 18, when the government an
nounced suppression of an lntegrallst
plot to assassinate Vargas and other ,
officials. The psrty was outlawed
soon after the November coup.
1
BASEBALL
National.
Boston at Cincinnati, Philadelphia,
at Pittsburgh postponed; cold, rain. .
R. H. E.
. 7 18 0
. 0 T I
Brooklyn -Chicago
...
Mungo and Phelps; Carleton, Kim
ball, Logan, and Odea, Garbark.
American.
R. H. .
Cleveland ,- ., , .. ., 10 0
New York 4 10 0
Harder and Hemsley; Chandler and
Dickey.
R. K.
a 11
B.
a
i
Chicago
Boston ...
. 4 a
Oabler and Sewell; Grove and De
sautela. R. H.
. 8
St. Loula
.
i
i
Philadelphia
. t 18
Knott. Newaom and WmlOv
Smith, Thomas (4), and Brucksr.
Detroit 4 11 1
Washington 17 a
Kennedy and York; Kelley. Chass,
Phebus and R. Perrell. .
WILL DRAW NEW JURIES
FOR MAY COURT TERM
A new grand Jury, and s new petit
Judy will be drawn for ths May
term of court, starting Monday. May
38, It was announced today by the
district attorney. Less than a down
criminal matters are scheduled t
present to bs placed baton ths In
quisitorial body.
Prospects are also bruiut for
light civil and squltjr calendar.
3