. Mr
The Weather
Pnrrratt: Cloudy tonight and
Friday wtth showers; cooler to
nltht. Temperature:
Highest yesterday , 88
Lowest thli morning. 60
Precipitation last 24 hrs. .29
Thirty-fourth Year
WASHINGTON, D. C. Oct. 0.
That "nicest little economic boom
you ever saw," which President
Roosevelt charged was killed when
the senate committee on foreign re
lations refused last July to consider
revision of the neutrality law, Is
now coming to life with the 100-to-1
shot that the mandatory embargo
on war munitions will be lifted.
Signs of business recovery are vis
ible In all - directions and most of
the up -awing Is war-Inspired.
Government economists and expe
rienced, hard-headed business lead
ers are worried, fearing a war boom,
knowing that a war boom Is in
variably followed by a period of de
pression. These cautious Individuals
pray for a steady, consistent Improve
ment, with Increased employment, In
creased purchasing power and In
creased prices.
'
ONB big steel magnate has joined
the administration forces de
manding repeal of the embargo and
at the same time he Is spending
$3,000,000 to expand his plant, an
ticipating a war boom. He Is fol
lowing the practice of the first
world war; expansion, followed by
collapse. There Is quite a bit of
that sort of making plants ready.
Two strong reasons for the Journey
toward - - business ' recovery tire- "-(A)
the national defense' program and
B) expected orders from the bellig
erents. Inventories In consumer goods and
heavy. Industry have not been kept
up.. Dealers Just carried enough to
get by. Came the war clouds and
remembering restrictions, shortages
and high prices during the world
war, retailers. Jobbers, wholesalers
have rushed to place orders to re
plenish their stocks: consequently
manufacturers are experiencing a
flood of orders, are hiring workers
and expecting a harvest.
The situation Is Illustrated by the
lumber Industry of the Pacific north
west. Orders are coming In and prices
changing so rapidly . the business
ts in a state of confusion. Orders are
exceeding production and shipments
are exceeding production.
DESIRE to get rich quick may up
set the apple cart. Recovery was
staging a comeback In 1937 when
unwarranted, sudden Increases In I
prices caused a setback from which j
business Is only now having a fa- j
vorable reaction. To prevent runaway!
prices, major Industries are announc
ing there will be no change for the
balance of this year.
Throughout the country plants and
equipment which have gone to seed
In the past 10 years are being re
paired, put In shape for operation
and there Is a growing demand for
skilled mechanics. Knowing the ten
dency of profiteers to soak the con
sumer, the president has requested
(Contlnred on Page Eight )
Blaze Destroys
Lebanon Sawmill
LEBANON, Oct. 5. (AP) The
Grove Lumber company sawmill
burned here today with a loss esti
mated by Nytand and Wallln, oper
ators, at 927,000.
The plant, moved from Forest
Grove recently, was destroyed by
fire the operators said started in a
sawdust bin of the boiler room. The
planing mill storehouse and lumber
yard were saved.
SIDE GLANCES
by
TRIBUNE REPORTERS
Helen Holt Wilson averring she was
capable of doing only about six
things at once and therefore could
not be bothered about accomplishing
all or the feata a friend suggested.
Audrey Davis Impressing a friend
wlthher explanation of how to make
a cute bat with a bit of fur, a bit
of cloth and a bit of snood.
Art Larsen being stymied when be
couldn't greet acquaintances with his
Usual scream while being subjected
ao a dentist's drill.
;:ATthe
. Moss Alford telling a friend how
r to take care of his stomach, Mose
finding relief in the same tablet for
W Sua,
Medford
Foil Associated Press
ALLIES PLANNING
TO AROUSE
IS
Liner Iroquois to Be Sent
Down in 'Circumstances
Similar to Athenia' Is Re
port to White House
WASHINGTON Oct. 6. yp The
White House announced In a state
ment today that the head of the
German navy had Informed the
United States that the American
steamship Iroquois, carrying Ameri
cans back from Europe, would be
sunk whon It nears the American
east coast.
Before handing the statement to
reporters, Stephen Early, a White
House secretary, said the matter had
been fully discussed at a cabinet
meeting today and It was decided
all of the facte should be made
known.
He asserted that the information
was given to the United States naval
attache at the embassy In Berlin
by Grand Adrlmal Raeder of the
German navy.
Propoganda Move s Claimed.
The President received It last night.
The statement Issued at the White
House said that Raeder had advised
the attache "that according to In
formation on which he relied, an
American ship, the Iroquois, Is to
be sunk when It nears our American
east- coast;' "" ' '
"The sinking of the Iroquois, Ad
miral Raeder said, would be accom
plished through a repetition of cir
cumstances which marked the loss of
the steamship Athenia."
The Athenia was sunk on the day
England entered the war against
Germany.
"As purely precautionary measure,"
the White House statement asserted,
"a coast guard vessel and several
navy ships from the patrol will meet
the Iroquois at sea and will accom
pany her to an American port."
Captain Advised
Early emphasized that these armed
ships would not be an escort In the
true sense of the word, since the
Iroquois still would be under com
mand of her captain, and would not
take orders from the government
vessels.
The captain of the steamer has
been advised of the Information re
ceived from the German admiralty
and has been asked to "make care
ful search for any possible explosives
on board bis ship," it was stated.
The whole of this Information also
has been relayed to the British and
French admiralties, the White House
disclosed.
The Iroquois sailed from Ireland
October 3 with what was described
as a full list of American passengers.
Formerly In the American coastwise
trade, she was chartered by the mari
time commission to pick up In Ire
land Americans who had been cauit
In Europe at the start of the war.
Discussed By Cabinet
Early asserted that the cabinet
meeting today had been devoted
"practically entirely" to a thorough
discussion of the Information about
the Iroquois.
"The White House, he lold re
porters, "la not putting It out for
Dniisn ana uerman iMavies
Stage Battle of Techniques
By John W. Calmer
LONDON, Oct. 5. (AP) The-British
and German navies are locked
In a battle of techniques.
Tied up with It is the British hope
of ultimate and possibly early de
feat of the German submarine cam
paign against allied merchant ship
ping. Although admiralty officials will
not talk, students of wartime tech
nique give an Idea of the nature of
the problem and the measures the
navy is .taking to meet It.
Torpedoes have been Improved
since the World war, but so have
depth charges main offensive wea
pon against submarines.
The modern "heater" torpedo,
driven by superheated steam, and
equally exploited by Oreat Britain
and Germany, does not leave the ob
jectionable and telltale bubble track
that was a fault of the compressed
air type. By watching the bubbles,
clever helmsmen were able to dodge
after the old-style torpedoes were
fired.
Depth bombs, shaped somewhat
like steel oil drums, are either droj-
i ' : 1 i t .
Sch wellen bach
Radio Highlights
By Associated Press
(Pacific Standard time)
NEW YORK, Oct. 5. All net works
have announced that they will be
on the air around 3 a. m. Friday
to relay Adolf Hitler's speech before
the reichstag. As usual there will be
both English interpolations and sum
maries. Tonight: America's Town Meeting
resumes, WJZ-NBC, 6:30, Sec. Harold
L. Ickes and Gen. Hugh S. Johnson
on "How Can We Defend Democracy
In America Now?" Neutrality debate,
WABC-CBS, 7. Col. Henry L. Stim
Bon. European schedule: WEAF-NBO,
8:16 p. m.; WABC-CBS, 8:55, 8:00;
MBS, 6:00.
What to expect Friday: European
schedule, WEAF-WJZ-NBC, 5 a. m.;
WEAF-NBC, 9:45 a. m.; WABC-CBS,
5 a. m., 3:30 p. m.; WJZ-NBC, 3:35
p. m.; WABC-CBS, 3:15, A. F. of L.
convention.
PACT WITH LATVIA
VAST CONCESSIONS
MOSCOW, Oct. 5, (AP) Soviet
Russia and Latvia, today , signed a
mutual ' assistance pact which gave
Russia vast concessions, including
the right to establish naval and
air bases in three Latvian ports.
Russia, capitalizing on her posi
tion following her new partnership
with Germany, thus was seen laying
the groundwork for formidable naval,
air and military bases In the Baltic
states. ,
Negotiations already are under way
with another Baltic neighbor, Lith
uania. . -
The negotiations with Latvia be
gan last Monday with the arrival
here of Foreign Minister William
Munters from Riga.
TALLINN, Oct. 6. ( AP) Formal
ratification of a mutual assistance
pact with Estonia left Soviet Rus
sia free today to quarter 25,000
troops at strategic points In Estonian
territory.
The agreement permits Russian
forces to occupy the north Baltic
Islands' of Dagoe and Oesel and the
mainland port of Baltlskt, and to
establish naval and air bases at these
points.
These bases will give Russia con
trol of the gulfs of Finland, Riga
and Bothnia.
The pact also Increases trade rela
tions between the two countries.
granting Russia the right to ship
goods through Estonia and per
mitting Estonia to ship across Rus
sia to the Black sea and Murmansk.
the purpose of creating any alarms.
We don't believe, as a matter of fact,
that many people In the United
States will believe the report Is true
or could be true. v
"We can't Imagine that aqy Bfitlsh,
or French or other shit wnuiH rfn
such a thing a the dlipatch states."
ped from skids at the stern of an
attacking destroyer or lobbed out
about 40 yards from the side of the
ship by Howitzers.
Exploding underwater, a nearby
depth charge may crush or spring
the hull plates of a submarine by a
sudden Increase In the water pres
sure. "The actual distance at which a
depth charge must explode from a
submarine to crush Its hull Is a
secret," says Lieut. Commander Ken
neth Edwards, a British naval au
thority. In a standard work. "But
even If It does not crush It com
pletely, it Is liable to do extensive
damage.
Britain has virtually abandoned
the anti-torpedo nets slung on booms
from the sides of ships during the
World war. The nets seldom proved
strong enough to stop a torpedo, and
their weight reduced speed and ham
pered maneuvers.
Bigger and stronger nets, designed
to stop and entangle an attacking
submarine Itself, now are strung
ftToss the entrances to every British
orfc,
MEDFORD, OREGON, THURSDAY, OCTOBER 5, 1939.
ELY SET
AT 5235370.27
1940 Expense Estimate
Compares With $230,
608.75 for Current Year;
To Hold Public Hearing
The total tentative budget Tor the
city or Medford for 1940 Is 238.
370.27 as compared with $230,608.75
for the current year. It was shown
by figures released today by M. L.
Alford, recorder. .
The total sum to be raised by tax
levy under the 1940 budget Is 184.-
953.27 as compared with (189.027.98
for this year, the figures allowed,
This represents a decrease for 1940
of (4,074.89. The decrease. Mr. Alford
said. represents a reduction of
slightly less than half a mill In the
tax levy. Last year the levy was 10.5
mills.
$1.18,892 General Fund
The total 1940 general fund budget
Is (138,892.97, the Bum required ac
tually to run the city's business.
Estimated receipts and cash on hand
amount to (50,417 for 1040. With this
sum deduoted, the- amount to be
raised under the 1040' budget by tax
levy for the general fund totals
(88,475.97. The general fund budget
for 1939 totaled (133,283.85. being
(5,809.32 leas than the tentative 1940
figure.
The bond budget for 1940 totals
(87,547.50 aa compared with (89,
902.84 for this year, a 1940 reduction
of (2,355.14.
Llbary Fund TJp
The library fund levy for 1940 Is
(8.929.80 as against (7,422.48 for
1939.
The entire tentative budget Is to
be published shortly and a public
bearing thereon called. The tentative
budget, approved by the budget com
mittee Tuesday night, la subject to
final approval by the city council
after the public hearing.
IITrlTXf CASE
IN JURY'S HANDS;
L
The case of Lucille Falls, charged
Jointly with her husband, Ival D.
Falls, with violation of the Mann act,
was being considered by the Jury In
U. S. district court this afternoon.
The case went to the Jury at B:48
this morning after Judge Claude
McColloch gave his Instructions.
Presentation of evidence and closing
arguments bt counsel were com
pleted yesterday.
The defendant was charged Jointly
with Falls on two counts in. an
Indictment. The first count charged
that Falls and his wife transported
Ooldle Beavers, 17, from Chlco, Cal.,
to Klamath Falls and the second
count alleged that the couple trans
ported the same girl from Klamath
Falls to Dorrls, Cal for Immoral
purposes. In another Indictment
Falls was charged alone with trans
porting the Beavers girl from Klam
ath Falls to Dorrls and from Dorrls
to Klamath Falls for Immoral pur
poses. Falls had pleaded guilty to both
Indictments and In testimony In the
case against his wife attempted to
. (Continued on Page Seven )
CIRCUTTCOURT TO
October term of the circuit court
will start Monday, October 23. A
new petit )urj will be drawn and
a new grand Jury, If the court so
decides.
Due to the fact that a majority
of the defendants In criminal cases
have waived grand Jury hearings,
and entered pleas of guilty on dis
trict attorney Informations, the crim
inal docket will be light.
The civil suit docket li fnlrly
r.'-avy, with a number of sula due
lor setting, ,
Defends
Sub Sinks Tankers, Directs Rescue Ship
I n i naiaiaii an.a n
f . - "-'-".
-o, , W , " - v
amwfsmmmmmmmmmmmm
1 4
.el ' ,- :r
This series of pictures ten the story of how German submarine torpedoed two British tankers, September
i i, ana men mrectea tne Norwegian rreignter Ida BaKKe, bound for California, In rescue of the crews. Tankers
sunk were the Influence and the Cheyenne, both off Cane Clear. Ireland. Picture 1). shows the German sub
marine guiding the Ida Bakke to four
nan been sunk four hours earlier.
lluence crew Is hauled aboard, some
torpedoed tanker Cheyenne going ashore at Klnaale, England, after having been picked up by the Ida Bakke,
following directions from the submarine. The submarine stood by seven hours nntll all the men had been res
cued, submerging finally to the accompaniment of three UrlllHh cheers from the two crews on the Ida Bakke's
deck. Messnge sent by submarine to master of Ida Bakke In Morse code, by blinker light, said: "Please follow
me. I have Just sunk a ship and I want you to pick up the lifeboats.'' .
HITLER DECLARES
BERLIN, Oct. a. .(AP) Relchs
fuehrer Hitler today pronounced his
Polish campaign complete after he
reviewed the troops who conquered
Warsaw and told his soldiers "X know
you are ready for anything."
He also lauded the Nazi forces for
rising "to defend our country from
Polish attack" In the order of the day
to the army Issued Just after the
triumphal review for which he flew
from Berlin.
BERLIN, Oct. 5. ( AP) Oermans
pinned their peace hopes today on'
the possibility Adolf Hitler's reichstag
speech tomorrow would outline a
basis on which hostilities might be
ended.
The fuehrer was scheduled to speak
at noon (3 a.m. PST) to the members
of his completely submissive legisla
ture, possibly to pronounce some new
German attitude toward the western
powers at war with Oermany.
But what Hitler Intended to say
remained a profound official secret.
That Oermany was not In a hurry
to start operations In the west was
Indicated by this morning's high
army command communique which
told yesterday's war story In two sen
tences. In the west, It said, "there was only
minor artillery and scouting plane
activity."
In the east. It reported continua
tion of "the cleansing which began
yesterday In the region of the Vistula
of shattered remnants of Polish
troops."
BOY SHOT IN MOUTH
LOSES PAIR OF TEETH
SPARTANBURG, 8. 0., Oct. 8. P
Vernon Bullnlgton, Jr., 13, was shot
in the mouth when his .22 rifle
accidentally discharged. Refusing to
become perturbed, he spat out a
tooth. thn another and finally the
bullet. Then ht took first aid
treatment)
Tbibune
- ill United
IS
A rms Embargo
ft)
r,
0 &
lifeboats filled with 42 members of
Picture (2), shows Sailors on deck of
of them already on deck. Picture (3),
Two More Neutral Vessels
Added to Submarines' Toll
(By The Asso elated Press)
Sinking of two more neutral vessels has brought to 63 the number
of ships reported sunk since the beginning of the European war.
GERMAN SUB LANDS
GREEK SHIP'S CREW
'S SHORE
LONDON, Oct. 8. ( AP) The Brit
ish Press association said today a
German submarine which landed 38
men from the torpedoed Greek
steamer Dlamantls on the Irish coast
acted too quickly for guards of neu
tral Ireland to attempt Internment
of the U-boat. .
The ship's crew was set ashore last
evening near Dingle, County Kerry,
some IS mile from the spot where
sir Roger Casement, Irish nationalist,
waa landed by a Oerman submarine
In a world war antl-Brltlsh plot.
First reports from Dublin said the
submarine exchanged greetings with
persons ashore while the Dlamantls'
survivors were ferried to land In a
collapsible boat. The Dlamantls, 4.990
tons, waa sunk off v Land's End on
Tuesday.
"Clvlo guards patrolling the coast
saw the submarine on the surface
and rushed to the spot," said the
press association's account, "but they
were too late to detain the Oerman
U-boat. While they were still some
distance away the submarine moved
away from the coast and started to
submerge.
"When the guatda actually reached
the scene of t,ie landing the only
evidence of the daring maneuver of
the Oerman U-boat commander was
a stretch of frothy aea where the
submarine had disappeared and a
group of bewildered seamen were on
the shove."
PORTLAND, Oct. SWAP) Mrs.
Mary Neer, Portland, was killed today
when an automobile struck her at
Northeast 83rd avenue and Oolng
street. Her death was the 43nd traf
fic fatality tola tmu),
Press
ST
Sft-Ta
the Influence's crew. The Influence
Ida Bakke leanlnf over rail as In
shows members of the crew of the
The gross tonnage destroyed, ex-
elusive of cargo, mounted to 3MJ98.
The Hoegh transporter, 4,014-ton
Norwegian vessel, was reported to
have sunk Tuesday after hitting a
mine at the entrance to Singapore
harbor. All aboard were rescued by
a British patrol boat. Nine crew
members wen Injured.
The Greek steamer Dlamantls, 4,900
tons, was reported to have been sunk
Tuesday by a German submarine off
the coast of Ireland. The crew of
38 was landed by the submarine at
Dingle, County Kerry, Ireland.
The losses to date, by nationalities:
Great Britain, S3; Germany, ; Nor
way, 6; Sweden, 4; Finland, 8; Greece,
3; France, 3; Holland, 3; Denmark, 1;
Russia, 1, and Belgium, 1,
In addition to the two neutral
ships, an unidentified German vessel
waa reported to have struck a mine
near the Island of Borkum in the
North sea, but this was not con
firmed. ' A Stockholm newspaper said
yesterday It understood the ship was
loaded with Iron from Sweden.
BERLIN, Oct. -) DNB, offi
cial German news agency, said In a
communique today that during Sep
tember German fighting planes and
anti-aircraft batteries shot down 48
French and 37 British planes on the
western front.
DNB said that German purault
planes accounted for 33 enemy planea
on September 30. which waa marked
by air fighting throughout the day.
Oerman losses that day were said to
have been five planea.
The agency said that of one group
of 37 French-British planea which
flew over the west wall eight were
destroyed and the rest forced to turn
Art. " - ' liJ
vA
"Too Late" Sign
When you m something jron
want advertised, contact the
advertiser at once. Bemember,
thousands of e.vea are on the
classified every eventnf. Delay
and you will likely see the
"Too Late" tlfn.
No. 168.
Repeal
FAIR TO ALL IS
SUMS VIEW
Washington Democrat Talks
After Vigorous, Opposi
tion by Nye and Overton
Modification Is Hinted
WASHINGTON, Oct. 8. (m Sen
ator Sohwellenbaoh (D Wash.) con
tended today the administration'
neutrality hill offered "the moat
oomplete and orderly retreat from
war that any nation ever executed."
Schwellenbach spoke after Senator
Nye (R.. N. D.) and Overton (D., La.)
naa vigorously opposed repeal of the
arma embargo, as proposed In the
administration legislation.
Nye demanded the administration
seek enaotment of "cash and carry"
legislation without repeal of the em
bargo. Overton contended repeal
would amount to "armed Interven
tion" In the European war. , .
Present Act Criticised . .
Schwellenbach said had oongreaa
deliberately sought Involvement In
Europe's war Us, "could not have don
a better Job than through our present
legislation."
"It haa taken only short month
of the present European hostilities,'
he said, "to completely demonstrate
the arms embargo contains definitely
possible danger of our Involvement."
The administration' bill would re
peal the embargo on arms ahloments.
put all trade with belligerent on
virtual -cash and carry" basis, and
Impose various restriction on Amer
ican citizens designed to keen them
away from danger point.
"Since It treats both sides nreela.
ly alike," Schwellenbach said of the
proposal, "It I aa truly neutral aa
any law that could be devised. Slnoa
It simply restrain our .own citizen,
neither aid ha a right to object
to it.
Would Keep V Out Of War
It trie to substitute a true neaa
plan for our present dangerous, un
neutral hodge podge, it any law can
keep ua out of war thla on will."
y demanded "cash and earn
legislation be added to the nreaeni
neutrality law, thus leaving the arm
embargo Intact.
Proponent of the administratis
legislation, he charged, "are taking
the position that" repeal of the em
bargo must b effected before other
provision of the pending neutrality
bill, which would restrict the nation
foreign trade, could be enacted.
mat, he asserted, "mislead the
people and Jeopardize the peace of
the United States."
There 1 no good reason," he toM
(Continued on Pag Seven.) s
L.
SLACKER STOLID
AS ARMY COURT
CONFIRMS GUILT,
j
NEW YORK, Oct. 8. (API A TJ. 1
8. army court martial which tried '
drover Cleveland BergdoU, the world
war draft dodger, on charges of de- ,
sertlon and escape from military eu- !
way iste too ay sentenced him te
three years Imprisonment.
BergdoU already is serving fire-
year sentence for draft evasion; thua ;
hi total penalty for refusing to
serve the country' armed force In
war-time win be eight year.
The court oomposed of 13 hick .
ranking army officer, deliberated for :
more than two hours before arriving :
at the verdict. Specifically, they con
victed BergdoU of escape and deser
tion a desertion which followed hi
original oonvlctlon of draft dodging
but held that be had not conspired,
a the prosecution claimed, with the :
family chauffeur In bis escape.
The former Philadelphia playboy.
middle-aged and pudgy now, accepted
the verdict stolidly; hi wife, Bert. :
33, Just as stoically.
PORTLAND, Oct. 8. ( AP) Major
O. R. Moore of the army engineer
announced today the Florence hear- ;
Ing on Sluslaw river Improvement
had been postponed Iron October M
to qct.ar, " " '
CASH AND CARRY