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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (July 31, 1938)
I Then Hurry Medford Tribune Now (or lew minute time to road the Classified pas. Then an a number of things adver tiled that mar Interest you. Don't take any chances on overlooking something good. Find It, then hurry. Full Associatd Press ill United Press Thirty-Third Year MEDFORD, OREGON, SUNDAY, JULY 31, 193S No. 111. The Weather Forecast Fair today and tomorrow j lit tle change In temperature. Temperature Highest yesterday....... 90 Lowest yesterday ........... 62 MfnllQ) Ifuiyjir I FADES Z I ' The Capital Parade By Joseph Alsop and Robert Kintner Copyright 1937, by The North American News paper Alliance, Inc. STATE DEPARTMENT WINS ROUND WITH FASCISTS DEAL WOULD HAVE GIVEN GERMANY HAITIAN EDGE D. 8. EXPORT-IMPORT BANK HELPS AMERICAN FIRM INDIRECT TREASURY LOAN 'INANCES PL11LIC WORKS WASHINGTON. July 31. If any single group may be said to "own America," It la the Insurance com panles. Eighteen large life companies are estimated to have 919,000,000.000 In assets; the assets of the American insurance business are now (32.000, 000,000, and the total Is Increasing by 800,000,000 annually. Nowhere In the American economy Is there so vast or closely controlled a pool of capital. No one exercises a greater power than the Insurance executives. Investing literally mil lions of dollars every day. No single business touches the lives of so many Americans. And now, for the first time, insur ance business la to be taken apart to see how It ticks. Tho New Dealers be hind the anti-monopoly investigation are preparing to do the Job In the most complete fashion. There's been talk that the mon opoly Investigation won't, after all, be aggressive. The talk is nonsense, if only because the New Deal advance guard has arranged an Iron-clad con trol of the Investigating committee, and is already thinking of asking congress to supplement the commit tee's $600,000 appropriation with an other (2,000,000. The plan to go after the Insurance business la proof enough that the Investigation will be one of the major events of the time How the Investigation will work Is well. Illustrated by the program on the Insurance front. As the investigation's real purpose la to dramatize the concentration of economic power, the central objective will be discovering the extent of the Insurance companies' Influence, how It Is used, and for whose benefit. For convenience, the inquiry la likely to be limited chiefly to the eighteen large life companies. The monopoly Investigators expect to subpoena the minutes of the companies' boarda of directors, go through their records for data on general policy, and circulate elaborate questionnaires. As the life companies are mutual companies, they are owned by their policyholders. And since the policy holders seldom know of their voting privileges, the managements tend to be self -perpetuating. The monopoly Investigators will want to know the method, the extent and the results of this self-perpetuation. They will ask why the mighty met ropolitan life has one Frederick Ecker for board chairman and another for executive vice president, and how top executives are appointed In other companies. They will want to know how boards of directors are chosen, and Just how much work big names, like Herbert Hoover and Alfred -JJ Smith, do on the boards. They will seek a reason for Wall Street's habit of calling Metropolitan "a Rockefeller company." the New York Life "a Mor gan company," and Mutual Life "a First National company." Naturally, there are many subsid iary problems with which the Inves tigators will deal. There Is the mat ter of the Insurance companies' in vestment method. The power to in vest great sums of money is a great power. How Is It used by the Insur ance companies? What testa do they apply to their investments? How profitable have the Investments been? And who has benefited? One little known fact It that, since publicly sold securities were required to be registered, almost as many Industrial bonds have been deposed of privately to the Insurance companies as have been offered openly through under writers. Again how do the Insurance com panies deal with the Innumerable farmers and land-ownera whose mort gages they hold? Are their policies toward their borrowers healthy for the economy at large? Then what are their relations with their policyhold ers? Are the policyholders Invited tn exercise their legal control of the companies? Or are they discouraged or prevented? Finally, how efficient Is the Insurance business as a social mechanism? Are its premiums too high, or do the people get their moneys worth? Foregoing are seme of the ques tions which the monopoly investiga- j Continued oo Pigs 8U HUGE OIL 'SLICK' I INDICATES PLANE r PLIGp SEA Navy Continues Search - Pan-American Line Offic ials Not Convinced Air Liner Lost. MANILA, July 31. (Sunday)) A huge and significant oil "slick" I found on the ocean surface left I searchers with scant hope today of finding the missing Hawaii Clipper ' and Its 15 occupants. But the for lorn hunt continued. The big' oil patch was found yes terday by the army transport Meigs on the course the transpacific flying boat was following between Guam and Manila when it vanished Friday (Thursday night. Paclflctlme). Samples dipped up by the Meigs for scientific examination showed the "click" contained lubricating oil and gasoline. It was about 1.500 feet In circumference and It lay only 50 miles west by southwest of the spot where the plane last reported Its position. Aviation circles generally regarded the find as evidence that the Clipper plunged Into -the sea. but officials of Pan American Airways refused to give tip hope of rescue. They con ceded the slick was "significant, but not conclusive." Several warships moved Into posi tion to continue their search off the east coast of the Philippines pending examination and a further report on the composition of the slick. The spot In question, however, was not on any ship or air route and experts concluded there could haw been no other craft in that area to have caused it. On many occasions the navy has discontinued searching for Its own lost planes upon finding the telltale oil spot on the water. The Meigs, nearest vessel to the Clipper when It made its last radio report, searched the slick for possible traces of wreckage but In the first attempt found none. At dawn she resumed patrolling of the oil slick area but several hours later reported she had found nothing new. Three army bombers out of Manila reached Tacloban, on Leyte gulf In the east central Philippines, prepara tory to flying seaward for an aerial Inspection of the oil slick. Three destroyers also were reported to have started from San Bernardino straits, at the southeastern tip of Luzon Island, to search the ocean between there and the Meigs. The Clipper was about 300 miles off the straits and about 569 miles east of Manila at the time of her last position report, at 12:09 p. m. Friday, Manila time, or 8:09 p. m. Thursday. Pacific standard time. Some Pan American officials sug gested the slick might have been made by the voluntary dumping of "anchor oil" from the plane prepara tory to an unscheduled landing at sea. and that the strongly built 26-ton plane might have taxied or drifted away thereafter. J. W. Jewett of Oakland, Calif., fourth officer on the Hawaiian Clip per, addressed the Medford 20-30 club a few months ago. He told his experiences with Pan-American avi ators and engineers in survey flights over the Pacific. PORTLAND, July 30. (AP) As search for the missing Hawaii Clipper stretched on without results, Port land friends of Major Howard C. French, aboard the big plane, sadly j recalled me Doistercus send-off they hsd given the noted aeronautical man, when he left here Friday, July 22. Mosqueroding as officers they "arrested" Major French and hustled him, to Swan Island airport and accorded him & giddy farewell. Interviewed Just before the trans port plane took off for California, Major French, commander of the 321st observation squadron, world war ace and former state aviation Inspec tor, said: "I hope to get up to Canton while j i. ui over mere, i warn to oe in can ton when the Japanese pull another raid on the town. I want to see how the bombs drop now It's been quite a while since I was In the aviation corps during the world war. I saw plenty of them drop then, but maybe styles have changed. WASHINGTON , July 30. (AP) Senator Borah's nurse said today he was "much better" and was expected to go out within a few days fur tho first time since he became 111. The Idaho Republican has been HI for several weeks with a condition as cribed to exhaustion. WASHINGTON, July 30. ( AP) A new federal law restricting inter state movement of firearms became effective today. The statute was drawn as an antl-crlme measure, but covers all arms. Justice department authorities, said, however. It would not interfere with obtaining guns for sports purposes. Where Hawaii Clipper Was Reported Missing I J"7 LAST MESSA6E FROM CUPPER. &yfi(7umn is. GMtf f PACIFIC H f ) H N r tl This map locates the approximate position of the Hawaii Clipper when she last was heard from on a flic )t from Guam Island to Manila, P. I., with 15 persons aboard. The ship began Its trans-Paclflc Journey at Alameda, and had negotiated Its regular hops to Hawaii, Midway, Wake ana Guam when It disappeared. JAPANESE CLASH E Tokyo Claims Disputed Ter ritory Retaken After 'Terrible F i g h t' Situa- , tion Tense. ' r TOKYO. Sunday. July 81. (AP) Japan and Soviet Russia came to grips today in what the Tokyo war office described as a "terrible fight" in which Japanese recaptured dis puted territory along the Manchou-kuo-Slberlan border. The situation was extremely tense. Large bodies of troops were de ployed on both sides of the border. Soviet troops were, said to be bombarding one border point with heavy artillery from the hills. The war office announcement de clared that not only did Japanese recapture a hill near Changkufeng which Soviet troops occupied July 15, but all other disputed points. Apparently what amounted to a major battle added a bloody new chapter to tho Changkufeng friction which began with occupation by Soviet troops of the strategic- hill top. Military regulations forbade dis closure of the number of troops engaged, the casual tics, or the size of forces now facing each other In the disputed territory, near the Junction of Siberia, Manchoukuo and Koreo. A war office spokesman said: "Two days ago Soviet troops occu pied Shachofeng. approximately 1.000 yards north of Changkufeng hill, and began fortifying It as they had done at Changkufeng. DIAMOND ZIPPER SHOWN TO WALLY PARIS, July 30. (UP) The world's first and only diamond ripper, wortli about $6,000 has been taken to 'the Riviera and likely will be shown to the Duchess of Windsor as a p res pective customer, It was reported to day. The ripper Is composed of thou sands of tiny diamonds. Fashion ex perts said It Is destined to become a part of what eventually will be the world's most expensive dress. When put on a gown, the ripper will extend from the neck to the waist. In try outs it opened easily and silently. TINY FILM QUEEN ORDERED TO REST BOSTON, July 80. ( AP) Shirley Temple, dimpled nine-year old movie star, today was confined to bed. by order of two Boston physicians, who said she was a victim of "too much heat and excitement." Dra. Harold Hlgglns and Joseph L. Lewis raid Shirley, here with her parents on a vacation tour, was running a temperature of 100.4. but that a day tn bed would restore her to full health. She reached Boston from New Tork ltst Bight. 1 ". .. a v MIDWAY IS. ,. HONOLULU Shawahak ii. PAGO PAi PAGO Missing On Hawaii Clipper i yV 'I ; -in Aboard the Hawaii Clipper when.lt took off from Guam Into an un certain rate were K. A. Kennedy (left), of Piedmont, Calif., dlvMon traffic manager for Pan American Alruojm, and (.'apt. I, en Terletzky (right), In command of the huge flying boat. There were 13 others aboard. WYOMING MEETS United States Senator A. Evan Reames left by train last night for Winslow, Arte., where he will take part In a senate Inquiry on the neces sity, suitability and feasibility of creating the proposed Petrified Forest national park In Navajo county. Ariz., to embrace what Is now the Petrified Forest national monument. The sen ator waa accompanied by Mrs. Reames. Senator Reames will participate In the Inquiry a a member of the sen ate committee of public lands and surveys. He will be asoclated with Senator Ashurst of Arizona and Sen ator Hatch of New Mexico as a sub committee Investigating the national park proposition In Arizona. From Winslow Senator and Mrs. Reames will proceed to Jackson Hole, Wyoming, where another senate in quiry will be held. At Jackson Hole the committee win Investigate the feasibility of extend ing the boundaries of the Orand Teton national park to Include addi tional territory in Teton county, Wyoming. An examination will be made of the land proposed for the addition and hearings will be held and witnesses heard to determine the attitude of tho ctttzena of the county toward the proposed extension. Sen ator 0Mahoney of Wyoming Is chair man of the committee and at Jack son Hole Senator Reames will be as sociated with Senator Bwarts of Wyo ming and Senator Murray of Montana as the Investigating sub-committee. The tub-committees are to report their findings to congress. Senator and Mrs. Reames will register at the Lapocada hotel in Winslow where the Arizona sub-committee will meet on August 2. After the hearing the senators will Inspect the petrified forest and the natural and physical properties In full com pliance with the senate resolution author! ring the Investigation, Sen ator Reames said. On August 4 Senator and Mrs. Reames will go to Orand Canyon and on the evening of that day depart for Jackson Hole where the Wyoming hearing will be held. Senator and Mrs. Reames planned to spend a few days at nearby Yellowstone nations park before returning to their Med j ford home. The senator a!d the two I hearings would probably require at ' least three, weeks CANADA OCEAN t couTo llUNITEDl 1 STATES I SAN FRANCISCO SAM0AN CUPPER EXPLODED HERE BY PAPAL CLAIM FORLI, Italy, July 30. (AP) Discord between the church and the Italian state broke out anew today as Premier Benito Mussolini brushed aside papal criticism of the fascist Aryan race doctrine with 26 scorn ful words. In the first announcement he has made personally on racial policy, II Dues characterized as "sbaurd" Pope Plus' assertion that It was In Imi tation of nazl Germany. He used 25 words in Italian to tell a group of fascist party officials In cimp at Fori): "You know and everyone knows that on the question of race also we will march straight ahead. "To say that fascism has I rn Ha tod anyone or anything is simply ab surd." The two sentences from his ad dress were distributed by Btefanl, official Italian news agency. No further quotations were made avail able. II Duce's statement that "we will march straight ahead" was the same as he uttered frequently dur ing the Italo-Ethioptan war to ex press determination to proceed re gardless of opposition. The dispute, now in the open after smouldering several months, worried Catholics lest It spread to other matters which. In the past, have been in contention between the church and the state. These Include activities of Catholic Action, lay organization of the church, and fascist education of youth. BULLETIN Night Game Boors: R- H. E. Seattle -. 1 5 0 Sacramento . - 9 3 0 Barrett and Fernandas; Sherlll and Franks. Soore: R, H. E. Hollywood ,m , 7 14 5 San Diego 12 14 6 Bilen. Hutchinson and Anmmtlo; Ward, Salvo and Hoi.ran. No Portland - Los Angeles gsme. Unscheduled FREE, TO TELL ON TAMMANYJ.EADER 'Dixie' Davis Turns State Evidence And Pleads Guilty In New York Racket Case. ' NEW YORK. July 30. H J. Rich ard (Dixie) Davis, disbarred attorney, was paroled from Tombs prison today after promising Dlst. Atty. Thomas E. Dewey he would plead guilty and testify for the state at the forthcom ing policy racket trial of James J. Hlnes, Tammany leader. Mines,, Davis, Martin Welntraub and five others were indicted on charges of conspiracy and operation of the policy game once controlled by Dutch Schultz, slain gangster. The trial of the first three was scheduled to start August 15 before Supreme Court Justice Ferdinand Pecora and a Jury selected from a special panel. Fearing bodily harm or death should he be kept In prison, Davis asked to be placed In Dewey's cus tody. The requert was granted by Justice Pecora, who signed the parole order. Davis was released from his Tombs cell shortly after Justice Pecora signed the order and discharged the $75,000 ball order in which he haa been held since his arrest In Philadelphia early In February. Dewey did not disclose where Davis, once attorney for Dutch . Schultz, slain gangster, would reside. The move to free Davla from the Tombs came unexpectedly although It had frequently been reported that he would testify for the state. Davis was attorney for Schultz at the time the gangster was shot down in a Newark. N. J., tavern in October, IB38. . . Indicted in New York county, he fled and was discovered hiding In Philadelphia In the company of his Broadway sweetheart, Hope Dare, red haired actress. Held In the Tombs, first in 9200,000 ball and later In 75 ,000, Davis sought and was granted permission to receive outside medical and dental attention. He left the prison regularly until It was discovered he also was visiting, besides his doctor, Miss Dare who had moved into an uptown apart ment. DENY LAND SALE WILL SPITE F.D.R. WEST PARK, N. Y., July 30. (UP) Howtand Spencer said today that he did not sell his Rrum Elbow estate to Father Divine, Harlem's negro "god" for the purpose of spiting President Roosevelt, his neighbor at Hyde Park across the Hudson. No, Indeed, but "I got to thinking afterward," he said, "of the steamboats that will bring thousands of colored people from New York to swim In the Hudson here and have picnics on the hills, and it sort of amused me. "Whether we meant to or not, this really will annoy Franklin a great deal, won't It?" Spencer said he sold the estate to Father Divine who Intends to establish there a "divine, modern, mystic standard of living" because Father Divine offered him the best price. But he' added, the potentiali ties of the situation could hardly escape him, now that the deal was completed. 4- Northern California: Fair Sunday but fog on coast; high temperature In Interior; moderate northwest wind off the coast. Oregon : Generally fair Sunday, with fogs, on coast; little change in temperature; gentle northwest wind off coast. Outlook In far western states for the period August 1 to 6: Fair weather with temperatures near nor mal. Mner II re men Ashore .SOUTHAMPTON, England. July 80.. vyp) The liner Bremen ran aground entering the harbor here today and gave some of her passengers a slight shaking. . Wool Rales Brink BOSTON. July 80. AP-UBDA) The wool market In Boston was quite active the early part of the past week but Blackened later as Krge op erators completed covering their most urgent need What's The Harry? LITTLE ROCK, July 39. (AP) A woman, learning to drive, ran her automobile through R. H. Weber's front yard and onto the porch of his home Tuesday night. It was still there tonight, chained by Mr. Weber to one of the surviv ing pillars of the porch. Weber said It would remain chained there until he reached a satisfactory agreement with Its owner concern ing damages. CANADIAN TRADE PACT PRAISED BY FARLEY ON VISIT Victoria Banquet Told Mutual Benefits Received And Down Trend Checked VICTORIA, B. 0 July 30. (AP) Postmastor-Oeneral Jamea -A. Farley of the United States aald tonight It was "to the mutual oredlt" of his country and Ca'nada that downward economic trends of the past year had been regarded aa an "added incentive rather than a deterrent to their Joint efforts toward a broader trade pact." In hla addreaa to the Canadian club here. Mr. Parley aald the progress of trade negotlatlona between Ottawa and Washington "tranacends all other questions In Importance for our two countries. "When our first trade agreement was signed Nov. 16, 1039, I think we all reallced how Important a step we were taking," he said. "Adjustment to the new position waa on the whole easy, and It seems a little strange to ua now that x x we should nave neen so long In providing a firm contrac tual basis for our oommerolal rela tlons. ' "x x We made a flood beginning In 1935 and I think the Individuals are few and far between who doubt that the agreement now In force had operated to the real advantage of both countries. He said there were definite Indica tions that the downward trend of Industry had been chocked. ALL DFnToFPAYS TRIBUTE TO FORD DETROIT, July 80 (OP) The city In which Henry Ford turned hla Inventive spark Into an Industrial empire reaching around the world gave him a ringing tribute today on hla 75th birthday. Ford waa deeply moved. He fought to keep back the tears this morning when 10.000 children In the fair grounds coliseum sang "Happy Birth day to You." When a little girl In a white dress naively presented him a bouquet of roses, th man whose word commanda nearly a million per- sone and whose fortune runs Into nine figures could mumble only a "Thank you." All Detroit Joined In the birthday party. In Dearborn last night a pageant waa held In his honor. This morning the children from all the city's playgrounds waved .American flags and shouted Ford's name at the coliseum aa he drove around the arena In ft 1908 car. . NAZI PLANE SET FOR GLOBE JAUNT WASHINOTOK, July 80. (UP) Bureau of air commerce officials said tonight that a permit to land In Alaska haa been granted for ft Oer man round-the-world flight. The German embassy described the trip. In August or September, as ft series of long-distance test and aald no effort would be made to beat Howard Hughes' globe -circling record. The plane, ft four-motored Focka Wulf Condor, will be commanded by Captain Henke. The alx-man crew will comprise Captain Von Moreau. co-pllot, navigator, radio operator and mechanics. It waa planned after traversing India and China for the plana to atop at Tokyo and Jump from north' ern Japan to Nome. Alaska. Bureau officiate said the next stop would be Ssn Francisco. Harvest Hand Killed PENDLETON, July 30. (P)CugM between the fender and tool box of a tractor when he stepped from the drawbar to the track. Jack White, 41, harvest hand, was fatally Injured yesterday on the McRae ranch near Hfllr. A crushed aid was the cause of death. THIS WEEK TESTS Tennessee Election Thurs day, Kentucky Vote Sat urday Eyed By Washing ton As Barometers. WASHINGTON. July 80. fl Th Roosevelt administration stands to gain great political advantages or lose considerable prestige in Demo cratle primary elections next week. Six of the 16 prlmartea scheduled.' during August will be held within five days. Senate nominations are at stake In Kansas, Missouri, Tennessee, and Kentucky, but primaries tn Vir ginia and West Virginia Involve only representatives. The outcome of two senatorial contests on Tuesday appears reason ably predictable. Capital political! believe Sen. George McGUl, who haa only nominal opposition, will win In Kansas, and they expect the Mis souri nomination to go to Bennett Champ Clark, an antl-admlnlstratlon. leader In the senate, who haa pow erful state and city organization backing. Thus In Uia first two major pri maries the administration should break about even with the conserva tive Democratic forces. The third senatorial primary of the week will be Thursday in Ten nessee. Sen. George L. Berry, tradi tionally an ardent admlntstratlonlsa but recently cool toward the new deal, la seeking the nomination against aeveral opponents. The administration haa stayed, scrupulously out of the Tennessee situation, complicated by a state or-gsnlr-.tlon fight. The senate . cam palgn expenditures committee severe ly criticized all factions In a state ment this week. It Is In the Kentucky race that the White House may achieve Its great est victory or surfer Its worst defeat because President Roosevelt haa ask ed In no uncertain terms for the ra nomlnatlon of Senate Majority Lead er Berkley over hla opponent, Got. A. B. Chandler. If Barkley wins next Saturday, the victory will be Interpreted uni versally as a personal triumph for the president. Should Chandler emerge victorious, the prestige of the administration would be severely shaken. HOME TOWN PAYS HOUSTON, Texas, July 30. (UP) Howard Hughes, the young million aire who set a record for flying around the world, came home today and told the workmen In hi manu facturing plant that they were re sponsible for hi achievement. Estimates of the wealth . of the 33-year-old sportsman-filer range up to .18.000.000. He got moat of that from the oil tool manufacturing plant .which hla rather founded and which Is pow the biggest plant of It kind in the world. Today, making hla first trip home In eight years, he ducked out of the receptions arranged In hi honor long enough to atlk to tha 3.000 craftsmen In the plant and tell tnemi "If It waan't for your diligence. I'd be pushing a plow In ft cornfield.' Hughea. who waa , promising young golfer and man about town before he left Houston to gain fam and fortune a a movlo producer and scientific aviator, waa given a city wide reception In honor of hla record- breaking flight around the world. PRESIDENT GETS BALBOA, C. Z.. July SO (UP)-. President Roosevelt oa Monday will receive his first mall since he left the United States three weeks ago on ft fishing trip. It waa the longest time that Mr. Roosevelt ha been without official mall since he hsa been In office. The United States destroyer Dallaa will leave here late tomorrow with three bulging pouches of offtelal mall forwarded by airplane from Washington. Tha Dallas will meet the United State cruiser Houston which carrle the presidential party at Coco Island, 800 mile southwest of here. The Dallaa also will bring back official dispatches from the Houston and send them by plan to Washington
