I- January 8, 1038 THE NEWS AND THE HERALD, KLAMATH FALLS. OREGON PAOF, THE A Now Yoiir'a iilft, beyond prloo, win kIviiii to Mm. Cnrliitou Wiley HIlMilielli Winner), plilrky yiimiK Kliininlli Pulls Kill whd Ink been Hour dentil fur iniiro thnii nix weeks In St. Vincent's hoapllul In I'orlluiiil. ror (lie flint time since Thuiikn llvlni liny, when Mm. Wiley ilf fored the limn nf hor li'K In a freak mitoinotilln accident In Porllnnd, altumlliiK jiliy ntcliiim bsvo (Ivan hur u chance ut life. On Christines dny Mm. Wlloy , wu ellowod to lit In lirr whoel chair anil visit tho children at Bt. Vincent's. Him suffered no serious reliction mid sovoiiil diiya lliliir showed definite sinus of Im provomunl, tho flint In more than a month. Mm. Wlloy'a motlior, Mm. I.u- oil Warner, la oxpooled In K In in -ath Kalis for several diiya, this week. Him lina not luft her dnuitlitnr s bmlaldu since cullud to Portland. 1938 BUDGET BALANCE OUT OF QUESTION (Continued from Page Ona) nil: modification nf tnies with out reduction of Inrnnto. Limits to Itefnrm Radio chnlns spread I lie in on ana across Ilia nation and Iran- crlptlona and tranalatlona wore matin for robrondrnsts over the I world. Willie lio llrited the ailottloll of many business reforms .Mr. Roose velt aald there wurn spuclflo Urn Ita to tho extent Kovormnonl could (o In effecting them, lie stressed the necessity nf cooperation be tween capital, labor and Kovorn nient. Tho mill-trust Inws, Mr. Itooae- fell aald, "require reconstruction.' but lie reserved ilntnllcd recom mendatlona fur a Inter mcsHsite. "Income Mut lie Kept I n" He akaIii uriti'd inx revision where levies were working, a hard hip on ainull bunliieaa but said federal Income aliould bo kept at lla preaeut level, nhuai-a "muat not ho featured" and "apeculatlve Income should not bo favored over oarned Income." Aaaerlluic the teak facing the three branches of Kovernmonl "laces ua aa aiiuarely, aa Insla fently, aa In March. 1131'" the prealdent declared aa to the bual neaa alluatlon and recent nttarka on miinnpnllea by administration lleiiienanta: "Tho overwhelming majority of bualneaa moil and bnukora Inlund , to be good citizens. Only a amall minority hnvo displayed poor cll lienahlp by engnKlng In practlcea which are dlahoneat, or definitely harmful to unduly. lilfttortlon "Thla etntement la stralithtfor ward and true. No peraon In any reiponalhln place In tho govern ment ol' the United Rtntea today baa ever taken any poult Ion con trary to it. "Hut. unfortunately for the eountry, when attention la called to, or attack la mado on epeclfle mlaiiae of capital, there hna been a deliberate purpoae on the pnrt of the condemned minority to din tort tho crlllclmn Into an attack oil all capital. That la wilful decep tion, but It doea not long docolvo." , The prealdent hlntod poaalble slew propoanla for rovlalon of banking prnctlcea when he assert ed lufluiincea were nt work to 'control bankng and flnnnco" do- plte federal efforla to "Inko auch cont roll out of the hamta of a f amall group." Kept At l'ceie "We have but to tnlk with hun dreda of amall bnnkora through out the United States." ho anld, "to run II 10 that Irreapoctlve of lo cal condition!, they are compollod In practice to accept the nallclca 1 1 n 1 (1 down hy a amall number of ttho lnmor hanka In ilm nntinn Tho work undnrlnkon by Andrew Aeckaon and Woodrow WIIon la nut finlahod yot." . 'Devoting tho flrat part of hla meaango to foreign affnlra, the prtsldont aald the Unltod States " boon kept at ponce dnaplle ."vocations which In other dnya, beriniiae 0f their anriouannaa could well have engonilorcd war." Vhlle thla country lind atrlven for' reduction of aruinmonta and ennyllliulon of Intnrnntlonnl dlf- IWrHtcoa, he aald, In a world of high tenalon mid dlaordor It and othor poncoful natlona muat "be atrong enough to assuro the ob ervance of those fundamentals of poaceful aolutlon of conflicts . which are the only ultimata basis f for ordorly exlatonce." "Adequnto Dcfonso" "Roaoluto In our detormlnnilnn to respect the rights of othnra n,i to command respoct for the rlghta of ourselves," he added, "we muat seep oursolvoa adequately atrong in soii-uoiense. He aald dlsrognrd for treaty ob ligations aeoms to nave followed the "surface trend" away from democratic, forms of government no aoaeo: "Our people believe that ovor wio years aemocrnc os of the world will survive, and domocruoy will be restored or established In those nations which todnv k now it. nnl In that faith Met the future peaco 01 iiiniiHlllll. Tho presldont snld he anxious as any Industrialist, bank er, invoaior or economist to ha I. noo tho budget but this doponded on certain comilllona: 87,000,0110 Kxncnrilturra I That tho government con tinue to holp the neoily jobless. S Thnt congress and the exe cutive Join In eliminating or our f telling federal ngenclea whore It Too Late to Clansif y JTOn SALM Furniture of three- room apartment. This apart niont for rent. Inquire 211 H. Main. t-i would not harm necoaaury func tioning of government. I That the nation's' purchas ing power bo raised to the point where tho tnxea would ho auffl elenl to meet noccsitary govern ment expinidllurna. Mr, Huoauvnll re I to in tod that anniinl expenditures could not be cut much below 7,UUU,UUU,UUU, "without destroying the easoiitlul functions ur Inttlux fiooplo sliirve." lie anld that by holding "normal expenditures to about the present level and with an lucrunao In the uatlon'a Income producing gruater tax revenues It would bu possible not only to balnnce future bud gets but alao to reduce tho debt. QUIET, CHEERS ALTERNATE AS SESSION OPENS (Continued from Pago Oho) publican spokesmen were cool to ward It, Henute Majority Leader Uurk ley of Kentucky aald tho musauKO was "a very comprehensive, won prepared and constructive speech," wlillo Senator McNary ol urcKun the republican leader, culled It "pleasingly conciliatory In com pur lion with some of the recent utterances by some aumiiiiairu. tlon officials." Hunnlor Nyo (ll-NI)) auld It "would have been better If there bad been some specific recom men datlon for a wuy to help us gut away from tho d I ror. I Wl'A dole." "Hound, Constructive" House Minority Louder Hnull suld the message wus "more con dilatory than 1 oxpuctud," while ltupieseutatlvo Tuber (lt-NY) as sorted "the president sooius to be bound to make the dopreaslon complete." "A very excellent mensugc, cor. lulnly consistent with Mr. Itoosn velt's objectives throughout Ills aduiliilatrutlou," aald Spoukor iiankbead. I think there wan nothing harsh In It or anything that a fulr-mlnded person could object to, olther big businessmen or little businessmen." "Vory sound and very construc tive, was Majority Leuder Hay buru'e comment. Representative lloland (U-l'a) the majority whip said "It points the way for cunkreas to eniicl leKislallon to overcome tho hut arda confronting tho nation." Prospecta llrlght Dcaplte extrordlnary Interest created by apeculatlon over what Mr. Itooaevolt would have to say about hla policies with regurd to rr uteres more pleasure M '38... a happier new year . . . and more pleasure for the thousands of new smokers who are finding out about Chester field's milder better taste. Mild ripe tobaccos and pure cigarette paper are the best in gredients a cigarette can have . . . these are the things that give you more pleasure in Chesterfields. Coerrttht 1931. lietirrr at Rnii TosaccO Co. business, (here were several evi dences of determination on the purl of lenders to got down to work quickly. Democratic Lender Rarkley of (he seniito snld prospects for eniidment nf Mr. Itoosnvell's pro gram wero "bright." Jlu predict ed the auniitn would dispose of the controversial untl-lyiichliig bill In week. It la ticketed for consid eration Junuiiry 0. lliirklny, Vice President 'tur ner, Hpeuker lluiikhoad and Holme Lender lliiyburn culled lit the White House before noon to go over his niessngo with Mr. Koose voll. April or May Later Hunkheud told newsmen ho hoped congress would com ploto Its work by April 10. liurk iey predicted adjournment by May. Jlunkhead said tho house this week would begin considering the Independent offices appropriation bill unci would lake up other ap propriation hills as soon us they wore reudy. He predicted the houso would sturt conslderutlon January It) of tho Ludlow war referendum reso lution and ndded "as fur as I'm concerned, I'm opposed to that." Durkley suld the seuuto would take up the udiuliilslrullon's gov ernment reorgunlxutlon bill Im mediately after a vote on tho antl lyiichlug bill. Itegurdlng suggestions the ad ministration might seek to puss a new wage and hour bill In tho senule, the democratic leuder auld he thought the wuge and hour question now up to tho house. SUBURBAN NIGHT SPOT RAIDED; STAFF ARRESTED t (Continued from Pago Ono) rntitn. District Attorney Hardin Itlnckinor mild Monday thut per son who owned bottles Iftft at tho club could have them If they would cull at hlii .Mica and make proper Identification. Tho aearch warrant hIho ahow od thnt a ronnlderahle quantity of liquor had been seized from a ear parked near the Kmhaany club houne. Weekend activities of the state men hero also Included arrest of Walter C. Martens on a charKO of unlawfully selling al coholic liquor. Justice W. II. Ilarnes said Martens Is under suspended sentcuco for a similar ofrVnse. CENSUS INDICATES MILLIONS JOBLESS IN UNITED STATES (Continued from, Pago One) their need, when they seek em ployment, they enter the labor market und compote with others who have Jobs or vitally need Jobs. Tliey aro therefore a factor In the unemployment problem though they may never seek re lief." In giving out his results, Rig gers suld "the present report re flects the decline uuring tne ear lier atuges of the current business recession but not the subsequent trend." Koine government economists said unemployment probably would be most pronounced In Jan uary and February because or a seasonal "slack period," but Hint Jobs might Increuse in the spring, lilkitors said the census should prove worthwhile "not only bo- cuuse It provides now rucia auu figures about unemployment but because the wide popular consid eration of thla subject has focused the attention of the nation upon the Immedluto necessity of lor- mulallng a long range program of re-eiiiployinenl." Attention will be given this aspect of tho problem In hearings beginning tomorrow before a sW clul senulo committee Investigat ing unemployment and relief. CHIANG DROPS CIVIL DUTIES TO RUN ARMY.? (Continued from Page One) political effect China's Increasing ly friendly relations with soviet HiiHslu would bring.) The government decided to abolish all reformatories for poll tlcul offenders and to releuse all Inmates. This was termed a step towurd complete froodom of thought within the republic. On far-flung buttle fronts the Japanese were still smashing re lentlessly ahead, resisted but not halted In tbeir campaign to hum mer China Into submission. Japs Unln in HliaiituiiB; Latest Japanese gulns were In rich .Shantung province, where tho Invaders captured the Important city of Tuluu on tho Tlnntsln-l'u-kow railway. Chinese troops blew up a bridge and withdrew across the Wen river, establishing a new defense lino at Tawnkow. Chinese air activity, resumed 1 -X esterfield .youttfincl MORE PLEASURE in Chesterfields milder better taste after a long lapso, was marked by an attack on Nanking. Only vague details were learned. The Chinese sold they bombed Ja panese airdrome outside the for mer Chinese capital, destroying two planei on tho ground. At Cunton. city officials threat ened to destroy the populous port ruther than surrender It to Ja pan's threatened south China of fensive. This was another mani festation of the Chlneso "scorched enrth" policy of leaving all behind them In ruins as they fall back before the Japanese. Chinese Filers Decorated Forty Chinese filers, distin guished by shooting down one or more Januliese Manes, were oo- corated by Chiang Kai-shek at hla field headquarter. Special ae cnrutlons wero Dinned by Madame Chiang Kai-shek on pilots who have shot down more than five Japanese planes. The generalissimo said China's fliers have proved themselves of enormous benefit to the armeu forcca of tho republic. The air force has been strengthened re cently by Russian plane deliveries. Information reaching Shanghai supported reports that Japanese ncuce overtures to China hud boon rejected. The Chinese point ed out that they were anxious to negotiate but aald the Japanese terms were Impossible. AP CORRESPONDENT DIES OF WOUNDS IN TERUEL BATTLE (Continued from Page One) wounds In bis legs and abdomen and fracture of one leg. Insurgent Generalissimo Fran cisco Franco, who had telephoned Zaranoza to Inquire of Nell's con dition, expressed deep sympathy whrii informed or bis death. The correspondent, who earlier in his career became known to millions of sports fans for hla vivid accounts of sports events, had covered the Ethiopian war and. since May. Spanish Insur gent battletrouts. NEW YORK, Jan. 3 0P) The Ara-orlntcd Press' vast network of wires carrying tho news to every coiner of tho United States was silenced for two minutes today In tribute to Edward J. Nell, AP war correspondent killed in Spain. The flow of news was baited at 6:30 a. m. (EST), the moment muss was being said for Neil In the cathedral of Zaragoza. Spain. CITY TAX RATE RISES AFTER ERROR FOUND (Continued From Page One) nth Falls for the now year Is 71.7 mills Instead of 71.3 mills. Here Is the table of combined rates for the various school dis tricts: 1938 1937 County unit-county unit high 32.0 31.2 County unit-Union high No. 2 40.4 87.2 Dlst. No. 1 and county unit high 37.0 38.1 No. 1 and Union high No. 2 45.4 44.1 This la the table of combined levies for municipalities, correct ed: 1938 1937 Klamath Falls 71.7 71.2 Chlloquln 69.8 67.4 Bonanza 51.5 48.6 Morrill 81.0 48.1 Malln 89.8 64.0 HOMESTEAD BOARD SLATES HEARINGS THREE MORE DAYS Hearing before the examining board of the bureau of reclama tion, in regard to the homestead lands In the Tulelake area, will continue for three daya accord ing to the reclamation officials Monday. The board will hear the plea of applicants on January 4, 6 and 12. These applicants include the group which fell under 90 per cont In the recent examination for homestead lands In the newly White Goods Prices Lowest in Years! 100 Wool Double Plaid BLANKETS 70x80 Size Delightfully soft. Rich colored plaids. Every one - benutifully bound with lustrous long wearing Duro-Sheen. 66x80 Single Part Wool So heavy and warm. 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