i'AGE EIGHT
DEATH. PIRACY
PLAY HOLES IN
PACIFIC DRAMA
' (Continued from Page One)
Boon the Aafje sailed out of Ban
; Pedro, December 20, bound for
Catallna Island, SO miles distant.
Aboard, besides Faulding and
Morgan, who had chartered the
yacht, were Fnuldlng's fiancee,
lira. Oertruda Turner and her
1-year-old son, Robert; Mrs. Mor
gan, an expectant mother; her
nurse, Miss Elsie Berdan; Rob
ert Horn and George Spernak,
amateur orewmen.
Three Shots
. Faulding at the helm, heard
, a terse order. "Get away from
that wheel, I'm taking command
here."
It was Morgan, emerging from
the shadow of the hatch. Chief
Agent Hanson said. Faulding
atarted toward h I s adversary.
Three bullets from a revolver
Soared Into the yachtsman's
ody.
Late that night, while his com
panions feared for their own
lives, Morgan had Faulding's
- body dropped overboard.
"I don't know what came over
Jack," Mrs. Morgan told inves
tigators. "He seemed to go
eraiy. After he killed Faulding
he ran the boat with an Iron
hand and we were In terror."
Former Houseboy
Morgan, a former houseboy In
Los Angeles apartment buildings
end hotels, pointed the nose of
the 68-foot schooner south. He
tayed at the wheel, taking only
catnaps. Before he would go to
sleep, he forced hta wife to take
control and ahe obeyed.
' A revolver was alwaya ready.
He was abusive to the crew,
they aald. At tlmea soma were
locked In various cabins. They
could only guess at Morgan'a
ultimate purpose, but Investiga
tors theorized today that he had
. a vision of establishing a colony
of some kind In the south Pa
cific With the Aafje provisioned tor
a two-day cruise, Morgan put his
Companions on rations, apparent
ly Intending to atop at amall
ports along the Mexican ooast
lor supplies.
- Five hundred miles southwest
ef San Pedro and five days after
departure, violent death struck
gain.
n "Home and 8pernak, abused
members of the crew, were work-
ing near the wheel of the yacht,"
;hief Agent Hanaon said they
-.told him.
"Home aaw his opportunity.
He picked up a marlln spike, hit
Morgan over the head, crushing
his skull, and with the aid of
Spernak, tossed the man over
board. "They do not know whether
he was dead or not."
i Hoping to reach the mainland
Voder sails, conserving fuel for
the auxiliary engine In event of
. a storm, the survivors turned
back.
On the morning of December
99, one painted an "SOS" on
the mainsail. The distress sig
nal was sighted by a navy filer
from San Diego, who summoned
toast guard aid.
"Had to Obey
" Towed by the cutter Perseus.
Ilia Aafje, her sails nattily furled
0nd her decks shipshape, arrived
here late yesterday.
Immediately after Horns and
tpernak had admitted their part
in Morgan's disappearance, U. 8.
Attorney Benjamin Harrison an
nounced they would be held for
further Investigation. Held also
M a material witness, Mrs. Mor
gan explained her part In al
legedly keeping the others at
bay while her husband slept:
"I couldn't help myself. I was
; In deathly fear of him. When
h wanted to He down for a nap
be would hand me the gun and
Insist that I keep the others un
der control. I had to obey."
Potatoes
BAN FRANCISCO, Dec. 81 (AP
. XJSDA) Potatoes: three cars
California, one Oregon arrived,
- eight unbroken, 18 broken cars on
track, market steady, almost too
few sales to quote; prices un-
.. changed.
LOS ANGELES, Dee. 81 (AP
TJSDA) Potatoes: fifteen cars
California, nine Idaho, Nevada,
three Oregon, one Utah arrived,
41 unbroken, 88 broken cars on
, track, by truck four California,
one Utah Arrived; aupply moder-
- ate, demand slow, market steady;
Idaho Russets No. 1, $1.20-1.22.
Too Late to Classify
LADT Refined, experienced,
would like housework; prefer
without children. Phone
1867R. 1-4
For RENT Furnished four
room apartment. Wood and
water furnished. Adults,
pets. 1128 Grant,
No
1-6
LOST Lady's white gold Bulova
watch. Reward. Phone 1092.1.
1-4-88
. Greetings from
Lost River Tavern
OLENE
Chicken Feed Saturday.
January 1st
Dancing by
Jack Stuart's Music Wranglers
Church News
The Seventh Day Adventlst
church, located at 833 North Ninth
atrect In Klamath Falls, will pre
sent an unusual service New
Vear'a day, Saturday, at 11 a. m.
The subject for the hour, to be
presented by L. M. Seltzer, the
pastor. Is "Resolutions Shall We
Make or Break Them!"
"Some people can make good
resolutions on Wednesday and
Thursday and have them all tram
pled under foot by the following
Saturday," Soltxer said. "The ser
mon Saturday will be of help to
many who are Interested In know-,
ing what aomc of the more Im
portant resolutions may be."
He added further "It la not
that we want to make a big spurt
of Intentions but that we want to
know how we can do those things
which we purpose to do.'
The meetings for the week are
as followa: Wednesday night, Jan
uary 8, the mid-week prayer meet
ing will be conducted oy curt
Rogers, the newly-elected elder of
the church. A new corps of church
officers will take office next Sat
urday, and a lively missionary
program Is planned for the new
year. A series of Friday and Sun
day night meetings Is to begin In
the church January 9 at 8 p. m.
The public Is Invited.
Seltzer has been stationed here
aa pastor of the local church by
authority of the Oregon confer
ence of Seventh Day Adventlsts.
BY LICENSE-BUYERS
Last-minute automobile license
buyers Jammed the courthouse
hall Friday afternoon.
The day's sales by the sher
iff's office of temporary permits
were expected to exceed 800.
Thursday S00 motorists placed
$5.25 on the line for temporary
permits.
The queue stretched from the
license counter in the tax office
to the door of the county clerk's
office at 2 p. m. Friday.
State police have warned mo
torists that those who have not
applied for platea will not be
permitted to operate their cars
on the highways.
WILLAMETTE
FLOODS RECEDE;
COLD FOLLOWS
(Continued from Page One)
lake left by Johnson creek's
rampage earlier In the week had
not run off from houses in south
east Portland. The (laager was
removed In the Nehalem valley
along the coast where 10 fami
lies were Isolated.
Danger fell with the river at
Oregon City. Sand bag barriers
were erected at paper mills and
along waterfront streets yester
day. The West Side Paclflo high
way was closed at Onion Flat
bridge 16 miles from here. De
toura were available.
The weather bureau predicted
clouds and light rains tonight
and Saturday In the northwest
portion.
PORTLAND, Deo. 81 (AP)
Robert H. Kipp, secretary of the
Willamette valley protect com
mittee, predicted 82,000,000 loss
today from floods.
"We have found that the flood
current Is carrying away hun
dreds of acrea of the richest
land In the Willamette valley,
worth up to $500 an acre," he
said.
"OoncIaslTe Evidence"
"It Is being carried to sea and
can never be replaced. The Wil
lamette river in a rage Is Itself
giving the. last and conclusive
evidence on which the army en
glneer board may base a favor
able report to congress for Im
mediate adoption of the Willam
otte flood control project."
The board, which first relect-
ed the proposals aa not "eco
nomically necessary," held a new
neanng at Baiem recently.
Farmers and county courts
have messaged stories of damage
to Kipp, who will send reports
and pictures to Washington, D.
C.
ARE YOU
SHARING THE
EARNINGS?
Again savers and Investors arc
realizing extra income on their
accumulated funds. ARE YOU
SAV1XO THIS BAFB WAY 7
4'
This
Associat Ion -Has
Never
Paid Leu
Than
(Current
Dividend
First Federal Savings
and Loan Association
OF KLAMATH FALLS
111 No. 9th St. Phone 87C
Member of Federal Savings
and Loan Insurance Corp.
THE
0NTMN0RI1T
GDALDF F.R.S
TRUST
(Continued from Page One)
aa It must If a democracy Is to
endure."
"Here In America," he said, "It
Is the old struggle between the
power of money and the power of
the democratic instinct.
"In the last few months this
Irreconcilable conflict, long grow
ing In our history, has come Into
the open as never before, has
taken a form and Intensity which
makes It clear that It must be
fought through to a finish until
plutocracy or democracy, until
America's (0 familiea or Amer
ica's li0.000.000 people win."
Ask Greater Cooperation
Some leglslalora expressed
agreement with Ickes' views, but
others In both major parties, com
menting on hia speech, called for
greater cooperation between gov
ernment and business.
The address followed two de
nunciations of "big business" by
Robert H. Jackson, head of the
Justice departments anti-trust di
vision, who with Ickes was a guest
on President Roosevelt's rocent
fishing trip oft the Florida coast.
These addresses have created
widespread speculation over what
President Roosevelt would say in
his annual message to congress
Monday,
Plainly Worded
One cabinet member, after a
While House meeting yesterday,
said the message unless changed
during the weekend would be
plainly worded but would be more
temperate toward business than
the Ickes and Jackson speeches.
In the background of all spec
ulation over the presidents atti
tude was the current business
downspin and what it may mean
politically to those who support
and those who oppose administra
tion recommendations.
CHINESE ABANDON
FLAMING TSINSTAO
TO JAPANESE
(Continued From Page One)
the foreign vigilantes was to pre
vent damage to foreign property.
The departing Chinese units
started a dozen new fires. A
Japanese silk factory and a Jap
anese tobacco company building
were among the atructurea In
flames.
There were no new explosions
during the day and the foreign
vigilantes expressed the belief
that all Chinese dynamiters had
fled.
Arrival of Japanese forces
was expected momentarily.
Only two hours before the de
vastation aquads of soldiers and
marines followed General Shen
Hung Lleh out of the city, word
reached Shanghai that Chinese
legions 100 miles to the west
were fighting desperately to stem i
the Japanese advance long
enough for destruction of Jap
anese Tsingtao propertiea to be
completed. j
A heavy engagement was re-:
ported In progress near Welhsien, j
important railway point. Once i
Japanese occupied that city their
entry Into Tsingtao Itself waa ex
pected to come within a short
time.
Get the WOrld'l eood
The Christian
Am InlmttOotui
BUSTNG
TMhM h
HE OHRISTlAIf SCIENCE PUBLISHING SOCIETY
One, Norway Sucre, lotton, Masiachuwtu
Regular reading ot Tms CmnnAK Scirxcs Monrro b
considered br many s liberal educatasn. Ita clem, urbuied
newi and well-rounded editorial feature, incldti.i? the We.-klr
Magazine Section, alike tba Monrro the ideal nawipaper
for tbe home. It is f ceati cosy, or J etntl a dr on lub
Krintion, delivered te year Sjoos, end if. obtainable K the
loUowins locations
Christian Science Reading Room,
First National Bank Hull. ling,
sixth and -Main streets, Klamnth Fulls, Oregon R
iniibaiiaiiailiiiit.llitll..,,....jlWiiWaiit
' When you take inventory this year
of
Are yonr telephones in the right places 1,
Have Ton enough telephones? Enough telephone linea
to take care of incoming calls? Perhaps your telephone
arrangements were installed for other daya, other needs,
other volume. Perhaps your staff and its requirement
have changed. Take inventory! We will gladly advise,
THB PACIFIC TELEPHONE AND TELEGRAPH COMPANY
126 8. 7th St. Telephone 100
NEWS AND THE HERALD, KLAMATH FALLS.
JOB INSURANCE
ENTERS EFFECT
IN 21 STATES
(Continued from Page One)
District of Columbia will begin
unemployment programs In Jan
uary are:
Alabama, Arizona, California,
Connecticut, Louisiana, Maine,
Maryland, Massachusetts, Min
nesota, Now Hampshire, New
York, North Carolina, Oregon,
Pennsylvania, Rhode Island, Ten
nessee, Texas, Utah, Vermont,
Virginia and West Virginia.
Reserve Hulk I'p
Some other atatea will begin
the payiueuta later In 193S, and
all systems will be In operation
in 1939.
The delay In beginning the
system In some states waa due
to requirements that a elate
must levy taxea for one year to
build up a reserve fund before
beginning payments.
The atatea where the payments
become effective tomorrow have
a total reserve of $487,800,000
with the federal government.
The social aecurtty aot levied
a tax of one per cent on wages
paid by employers covered by
the unemployment insurance pro
visions for 1936 and two per
cent In 193". Next year the tax
goea up to three per cent. The
act provides, however, for the
employer to get credit up to 10
per cent of the tax for contri
butions made to state unemploy
ment funds.
Tax Rates Vary
All states now have unemploy
ment compensation laws, but
their lax rates and benefits vary.
In general they are devised to
provide henefils ranging from
$5 to $1S a week.
The old age pension pro
visions of the act allowed a per
iod tor accumulating a reserve.
Just as did the unemployment
Insurance section.
Under these provisions, no old
age benefits will he paid until
1940. This year the tax to build
up this reserve waa two per cent
one per cent of the employe's
wages, up to $3,000. and one
per cent payable by the employer.
Already more than $340,000,000
has been collected.
The tax remalna the same In
1938 and 1939 but will be In
creased one-half of one per cent
on both employer and employe
In 1940.
OFFERED JOBLESS
SALEM, Jan. 1 The state em
ployment service this week an
nounced an Itinerant service to
enable eligible unemployed work
ers In small towns and rural dis
tricts to register for employment
and file their claims for unem-
CARNIVAL
NEW YEAR'S EVE
DANCE
MALIN
Fri., Dae. 31st
Sponsored by
Business Men of Malta
newi rJailv trtrmioh
Science monitor
Dtlly VrwitSr
study the possibilities
your Telephones
ployment benefits at points near
their homes,
. This service will consist nt a
weekly visit by representative of
the state employment service to
more than 60 towns of the atale
and will he continued tor such
time as local employment con
dition! seem to require.
Bach person applying tor un
employment benefits la required
to register with the employment
service for a Job. If ho hns work
ed at an employment subject lo
the state unemployment compen
sation law and Is found eligible
for benefits, he may draw weekly
compensation after a walling pe
riod of two weeka providing suit
able employment Is not found (or
htm In the meantime.
The schedule of towns, places
and dates tor Klamath and Lake
counties la aa followa:
Wednesday, January S: At
Lakevlew at .the courthouse until
emergency work Is completed and
then every Wednesday thereafter.
Thurs., January I: At Chilo
quin at the city hall until emer
gency work la completed and then
every Thursday thereafter.
OVER 200,000
MEN ENGAGED
IN ENCOUNTER
(Continued from Page One)
with practically all equipment
used In the Anurias campaign.
Bank Building Mined
It was reported governinenf
troops occupied the Hank of
Spain building In Teruel yester
day after mining It. They took
few prisoners, the report said, as
a majority of the defenders were
killed In the fighting and the ex
plosion. A abort wave radio
transmitter was found.
Latest advices said govern ment
troops captured the whole trout
part of a block of bouses over
looking Plaza San Juan. The In
surgents still were holding various
civil buildings and a hospital.
Oovernment troopa broke Into
the courtyard of the convent of
Santa Clara, where a water reser
voir had been blocked earlier. The
Insurgent defenders were reported
to have retreated through the
convent basement to underground
passages. The convent was afire.
mmmtmmmmuMtmmmmtitMtitmM
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If T .
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e- ;
ft
Wishing You All a Very
Prosperous 1938
From the Whole Gang
Balsiger Motor Co
MllriaktaimaisiseMissMMW
OREGON
CITY READY FOR ,
NEW YEAR'S EYE
CELEBRATION
(Continued from Tags One)
din will greet the arrival of
"llaby 1938", The Southern Pa
cific's alien will lead the noise
parade
At the state liquor store Friday
afternoon It was apparent a great
mnny people Intended to help the
colouration spirit with a Utile li
quid stimulant. Manager Tom
Ingram said that the store was
having a busy day, althuugh sales
would be only about to pur cent
of thu all time record set IJouom
bor i.
New Year's day will find pri
vate business houses generally
closed. Doors of all public of
fices, -except the police station,
will be closed.
Celebrants will find the out-of-doors
cold. Temperature drop
pod to 84 doaroos here Thursday
ulghl and appeared likely to fade
down to some such point at the
turn of the year.
The Herald and News will pub
lish regular edition on New
Year's day and Sunday morulug.
These will Include a special 1987
levlow supplement.
1'ubllo Wedding
Members of the Kagle lodge of
Klamath Kails will usher In Ihc
New Year with a dance and a pub
llo wedding to be a feature of
their program on Friday night.
The public Is Invited to the affair
nud as an added feature the drum
corps will be out In full dress.
l'rlur lo the celebration and
wedding the drum corps will par
ade through the streets and go
through Ihelr paces. Names of
the wedding participants will not
bo announced until after the cele
bration. The bridal couple will receive
gifts from various merchants lu
the city. The affair will be held
lu tho new Eagle hall, Fifth aud
Main streets.
Vital Statistic
1I1UT1IH
KKII.S.MEIKIl Horn to Mr.
and Mrs. Ron Kellsmeler of
2347 Harrow street, December
31. at Klamath Valley hospital,
a son. Weight 7 pounds, 3
ounces.
6
-Kennell-Ellls
FIFTEEN different Fords, from
Model T to the new 1938 models,
have gone through our doors. The
progress of these years has seen our
organization grow from 5 to 105 em
ployees. THE growth of this company is not
solely due to any one man, but to
all the employees. During this year
we have increased our floor space to
80,000 square feet, to better serve
our customers.
Editorials On Newi
(Continued from Page One)
a sharp and wsll-seasonod flsh
boue or a splinter from (he shin
bone of a deer."
The stripes, he says, were about
a half Inch wide, the cantor one
extending from the Up to the hot
torn of the chin, while the outer
ones extended from the corner of
the mouth downward.
JACK ALMKTEn, It will be re
called, places the "III" mark
on tho chin as a "brand" applied
to Modoc girl babies In tho old
For a GOOD Time
Go Where the Crowd Goes
The Eagles9 Dance
Brand New Floor Best In Southern Oregon
Wednesday and Saturday Nights
Adm. 40c and 10c 5th fend Main, Over Breier'i
Hp
Clean Economlcel Convenient
ORDER PRES-TO-LOGS TODAY
HEILBRONNER and REA
"Kiirl That Satisfies Plus Service"
Ofrlco nnil Ynnl, H'JI Spring
1923-1938
"Watch the
FORDS
Go By"
December 81, 1937
slave-trading days. The boy
babies, he says, ware marked by
a hole In the center eartlldgc ot
the nose,
The purpose ct these marks
was lo make possible Identifica
tion ot Modocs captured as ohIU
dren and enslaved by their cap
lors, aud subsequently ralakea
by Ihelr own people.
This explanation was given I
Mr, Almaier by Indians living on
the Klamalh reservation,
Visits at Fort Mrs. Waller
Jam-liko of this oily spent Tuosday
at Kurt Klamath visiting with her
daughter.
The
All Purpose
FUEL
Quick Warmth
Convenient Cooling
Cheery Fireplaces
Phone 2:lllV