Late News Flashes I'nrty Is Split WASHINGTON — (/P)— Some senate Democrats forecast Monday that an open battle for control of the party would develop between liberal and conservative legislators during the coming session of Congress. The seriousness of the party split was acknowledged gen- orally by congressional Democrats in private conversation. Most of them deplored it, but some said they welcomed it as n means of bringing the realignment of parties along more realistic lines. Mmlrltl Under Klrc MADRID, Spain — (/P)— Spanish insurgent artillery batteries continued Monday to shell Madrid, still shaken from its Christmas week-end bombardment, the worst and most prolonged the capital has suffered in a month. Official figures said in the past 48 hours 400 shells poured into the city killing 8 persons and wounding GO. Star 1937 Red-Letter Year in Education Phipps Declares Sales Tax Now Furnishing Bulk of Common School Revenue BOOKS MADE FREE Teacher- Retirement System Installed—Salaries Improved ny \v. E. IMIIPPS Sliitn Munition Commissioner (Written for the Associated Press) LITTLE ROCK -(/P)—The year 1937 will bo considered a red letter year in Arkansas education. While it may not. have Ijeen the best year I he state has experienced from the standpoint of total school revenues received, 1937 was a year of substantial progress for the public schools of the state. Financial conditions were improved over recent years; the per capita apportionment uf the common .school fund reached the highest point in history; teacher welfare received a substantial bor.st in the enactment of the retirement system; public welfare was increased by provisions for free textbooks, enactment of a measure allowing districts to pay high school tuition, and a Irage expansion of the vocational education program, and school districts generally improved their fiscal affairs and made creditable improvements in school plants. The general improvement in school conditions i.s reflected in butter attendance on the part of pupils, increased morale on the part of teachers, improved training of teachers, extension of school terms and development of an increased concern for the general improvement of the state school system whereby desirable school facilities are to be made available to every school in the state. The legislation enacted by the 1837 general assembly made a material contribution to school progress. In addition lo enactmcnlsl mentioned above the sales tax, which is now providing theh ulk of the revenue of the common school fund was re-enacted, full time county examiners provided, library facilities, especially for rural communities, were provided, school enumeration regulations were .straightened, and records of payments of bonds and interest on bonds must be made by county treasurers. AH inall. the program of school legislation enacted in 1U37 resulted in the must progressive improvement in school conditions. Free TexDwolis One of the most important improvements of the school program was the provision of free textbooks for pupils for the current school term. Through n combination of contributions of [>ar- onts of used texts and a legislative apprupriation of $650,000, basal textbooks have been provided free for the first eight grades of Die public schools. f On December 13 the Department of I Education had distributed tu the various counties n total of 1,736,726 new books at a cost uf $629,311.82. Although definite reports regarding School enrollment for the term have not been received, comments, from many sections uf the state have indicated that I he provisions of free textbooks has stimulated enrollment, particularly in the rural and negro sections. As has biri'ii the case for the past several years, local school boards have taken advantage of the possibility of securing assistance through the Works Progress Administration in the erection, repairing and remodeling of school buildings. The school plant division of the Department of Education has been active in preparing plans for the districts which have erected buildings having less than ^0 rooms or have remodeled old buildings. Considerable improvement has been made in sanitary conditions of schools as well as in the general betterment of physical conditions of .school build- . ings. The past year witnessed a steady growth in recreational centers and in the use of school buildings as community centers. Along with the improvement of school buildings has come the improvement of roads by the state and Ihc WPA, Ihus making rural schools more accessible to the pupils. Much of the improved situation with respect lo schools has resulted from the strengthened jxisilion with respect to state school funds. Local school funds have varied comparatively little during the past two or three years. During the sdiuul year 1936-37 the state provided slightly more than $5,000,000 for the public .sellouts of the stale, the percapita appropriation of the common school fund of $6.52 being the largest in histury, surpassing the largest previous figure of $5.92 apportioned in 1926-27. The state equalizing fund allocated nearly $850,000 tu needy school districts. Mai.y school districts have improved their current financial condition by means of refinancing their bonded indebtedness, thereby enabling a greater per cent of school revenues to be Uie.d U. S. Jutlftc Dies TUSCON, Ariz. — (If)— Chnrlos Fremont Acliclnn, 81, retired North Dakota federal judge, died here Sunday night. 8 Lynched In 1937 TUSKEGEE. Ala. —(/I 1 )— Eight persons, all negroes, died by lynching at the hands of mobs in 1937, Tuskegee institute reported Monday. The 193(i total was also eight. Killer by Fisticuff SEARCY. Ark. —(/I')— Officers investigated Monday the death of Millord Saunders. 23, Barbers Lake farmer, a few minutes after he was struck in the face during an altercation at n roadhuuse near here Sunday. The man accused of striking Saunders with hir. fist was held without formal charge. Arkansas — Mostly clmnhi Monday niyht and Tuesday, occasional rain probable; slightly colder extreme north Tuesday. VOLUME 39—NUMBER 64 HOPE, ARKANSAS, MONDAY, DECEMBER 27, 1937 PRICE 6c COPY CASE CLOSED Brnvr Buttle Fails WINSOR. Ontario -(/I 1 )— Woslrni W. Fletcher. 28, for whom several thousand persons in the United States and Canada had offered blood transfusions in his fight against a streptococcus infection, died Monday. Machmlo Released NEW YORK —(n't- The Cuban government Monday withdrew all charges ngninsl former President Gcjnrdo Mn- civd'i uf Cuba, who had been held by United States authorities in temporary custody on an extradition war- want. Machadu, who is seriously ill in a hospital here, was accused in Cuba of mis(ip|.'liciition of funds and mass murder. Estate to Widow LITTLE ROCK —I/I')— All properly uf former Governor George Washington Donaghey was bequeathed to his widow, under his will filed Monday. iMurdcr I'rolie WARREN, Ohio — (/P)— Investigator.'; found half-filled liquor glasses Monday in the room where Mrs. Cor- sHip, Campbell, daughter-uj.-law . of Inc pioneer steel man, was wounded fatally ill a Christmas gathering. Prosecutor) Paul Reagen said Louise Campbell, 28, a daughter, fired the shots. Hunting Licenses LITTLE ROCK — Secretary Graves of the Game & Fish Commission instructed wardens Monday to conduct during January a vigorous prsecution against persons hunting without licenses. Mrs. Allard Dies at Gurdon Sunday Funeral Held Here Monday from Mrs. W. G. Allison's Home Mrs. Josephine Allard, 85, died at (Continued on Page Six) I'uneral seviees were held at 10 a. m. Monday from the home of her niece, Mrs. W. G. Allison of Hope. The services were conducted by the Rev. W. W. Nelson of Mineral Springs. Burial was in Rose Hill cemetery. No immediate relatives survive. MIND Your MANNERS Test your knowledge of correct social usage by answering the following questions, then checking against the authoritative answers below: 1. How is the bride's wedding ring usually marked today? 2. May the bridegroom's ring also be marked with initials? 3. Is a piece of jewelry a suitable weddiiij! gift from the bridegroom to the bride? 4. If fruit juice is served at the wedding reception, instead of .something stronger, should the guests drink to the bride and the groom? 5. Dues the bridegroom or the best man usually hand the clergyman his fee? What, would you do if— You are a young man engaged to a girl and one of her relatives offers you the use of a house in which to spend your huneyinoon- <ai Accept it if the offer fits in with llie plans of your financec and yourself? (hi Offer to pay for the use of the house? (L-> Decide it would be poor taste for you to accept the offer since it came from one of the relatives of the bride? Answers I.S. L. M. and F. C. R. Dec. 2, 1037. 2. Yes. S Yes. This gift should be something fur her personal adornment. 4. Yes. 5. The host man, though, of course, it should be given to him by the groom. Best "What woud you do" so- lution—(nj. 7 Prizes Awarded for Best Lighting in Holiday Style J. R. Williams, Dorsey McRae, Elmer Murph Humes Top Three 3 VISITING JUDGES Two From Shreveport, One From Little Rock Give Verdict R. F. Elgin, Original Surveyor of Prescotfc and Emmet, Dies Winners of the prizes for the most attractive decorated Christmas lighted homes in Mope were announced Monday. Judging of the homes, by their appearance from the street, was made by three out-of-town judges. The judges, one from Little Rock and two from fchrevcport, declined the use of their names for publication. Seven awards were made, the three top prizes being given by the municipal Water & Light Plant and four by merchants of Hope. The Winners Tile winners, ranked in urder. follow: 1. J. R. Williams residence, South Main street, electric coffee and pcrcu- lator set. 2. Dorsey McRae residence. East Third street, combination electric grill and waffle iron. I 3. Elmer Murph residence, East Sec- j ond street, electric egg cooker. •1. Ross Gillespie resilience. West B street, bedspread awarded by Geu. W. Robison & company. 5. 'Carl Bruncr residence. East Third street, set of dishes awarded by Scott Store. C. Frank Ward residence, North Elm street, box of cundy awarded by Hope Confectionery. 7. Mrs, Clyde Hill residence, North Pino street, fruit cake awarded by City Bakery. Judged Friday Night Judging of the winners' was made Friday night and the prizes were delivered Saturday. The judges said they were much impressed and that placing the winners In order was a difficult task. Several oilier homes throughout the city were very attractive, but the owners were not eligible for the contest because of "connections" with the city government. The judges commented favorably upon the Christmas lighting of the business section of the city. Brother of Local Resident Drowns Railroad Pioneer Succumbs at 88; Buried at Emmet Laid Out Tovnsites of Prescott, Boughton, Emmet in 1873 MARRIED 63 YEARS Elgins' Anniversary Celebrated 8 Days Before His Death —Reprinted Irotn centennial Edition. R. F. Elgin Huey Roberts, 55, Meets Death in Lake Hamilton Accident HOT SPRINGS, Ark.—'Hie body of Huey Roberts, 55, proprietor of a boat landing on Lake Hamilton, seven miles west of Hot Springs, and former deputy state game warden, was recovered from the lake Sunday afternoon. He drowned Saturday afternoon when an outboard motor boat he was driving capsized when he made a sharp turn a little more than SO yards from I)i.s boat landing. In the boat also were Miss Frances Christy, 26, telephone operator at the Eastman hotel, and George Thumas, 55, manager uf the Marciuolte hotel and secretary-treasurer of the Arkansas Hotel Men's Association. They held onto the upturned boat until rescued by L. H. Henderson, merchant of Greenwood, who was Loosing the bridge at the Roberts place and saw Miss Christy and Thomas struggling in tiie water. Roberts body was found a short distance from where he went down. Extra Guard Put on Assault Pair Brother of Hope Man Huey Roberts, who was drowned in Lake Hamilton near Hot Springs, was a brother D. Roberts of Ho|>e Route Two, and also an uncle of Sherman Roberts of Hope. They left Hope immediately upon learning of the tragedy. Mr. Roberts formerly lived at Mor- rillun. He is survived by his widow. Baptist Deacons Are to Dine Monday Night The deacons of First Baptist church will have dinner at the home of the Rev. and Mrs. William Hussell Hamilton Monday night at 7, following which a short business session will be held. Yellow and Black License Colors SAN FRANCISCO. </!'> Yellow and black, praised by experts for clear visibility, are the most popular colors fur auto license tags in IMS. Ten states liave adopted them, according to the California Stale Automobile association. Black and white, most popular combination of 1937, are being used by only five states in the new year. T vv o Suspected Negroes Held in County Jail at Marion, Ark. MARION, Ark. —I/I')— Officers took precautions Monday lo guard the county jail in which two negroes are held pending arraignment on charges that they raped an 18-year-old Mem[/his girl Saturday night. Informed of the arrests, District Prosecutor Bruce Ivy. of Osceola. said he wouM confer with authorities later in the day with a view to arranging trial immediately. Lower Prices for Vegetables Likely Farmc'ivs Should Consider Prospects Before Making Increase With the expected higher production uf c-omincraal vegetables in 1938 it is expected that prices will be relatively low, according tu information received from the U. S. Bureau of Ag- rii'iillural Kcunumics by Roy Sellers, [Extension specialist in marketing, ITni- ver.Mly of Arkansas College of Agriculture. The commercial truck- crop acreage fur fresh market has expanded in the United Stales since 1921. while the value per acre has drifted downward, and this is true also for Arkansas. 'I lierefoiv farmers shouli! consider carefully the crop outlook and the price pro.spect.s when considering any expansion in commercial vegetables, Mr. Hellers advises. There is also a lai'Ke carryover uf several uf the can- in.I vegrtables; supplies of frozen veg- ctalile.s are al.su large. The uutluuk for potatoes is fairly favi.nible for HKiS. October intentions to plant .siiMUe.it a putatu acreage for the I'nilcd States about equal lo the 1937 iien.-iiKf or possibly a little smaller. Will i average yield, Ibis acreage r-hould give a production uf about 365 million bushels, which with the expected demands and consumer purchasing power shiiuld give growers returns for Ihi'ir potato crop a little larger than have been received in any of the puM few years, will, the exception of 193li The position of llie Arkansas potato grmvir i.s possibly a little more favorable than that uf the growers to the north. Mr. Seller.-, .-.ays. The acreage of luinatoes for fresh market in 193S will be slightly in- cie...sed fur ihc country as a whole, but the prospect for Arkansas and other intermediate states is for .1 .-li^lil ileirea.se in acreage. Due In extremely competitive buying, the tu- malo price situation in Arkansas in 11),'!7 M'.'IS unusually favorable. Therefore, it is important that growers do nut let themselvjL'.s be loo greatly in- llueiicvd Ir, 1!O7 prices in planning then' ISI3S operations. C.mner> crops in the United Slates have a little less favorable outlook than some uf the individual fresh vegetable crops. The total supply of canned tomatoes, for example, fur the 1937-38 .season us indicated at 25'^ mil- (Continucd on Page Six) 2 Accidents Here But NoOne Hurt Longview (Texas) Car Goes Off Viaduct Dump •-> : on Highway 67 — No serious accidents marred the weekend holidays for Hope and Hempstead county residents, a survey of hospitals, wrecker services and the police department, showed Monday. There were two highway accidents near Hope, but no one was seriously injured. The first occurred about 10 o'clock Friday night north of the Missouri Pacific viaduct on Highway 67 in which Mr. and Mrs. Bert Howard, Mr. and Mrs. H. E. Rogers and daughter of Longview, Texas, escaped with minor injuries. The car in which they were riding plunged off the highway and turned over four times. It was reported that lights of an approaching car blinded the driver of the Longview car. The Texans were cnroutc from Longview to Cotton Plant, Ark. to visit relatives. They received medical aid at Josephine hospital and resumed their journey about two hours later. Their automobile, badly damaged, was left in Hope for repairs. The second highway accident occurred near the Missouri Pacific viaduct Sunday night. No one was in- Ijured. One car had become stuck. In getting it back into the highway it lunged into ihe path of Ihe second ca r. Police Chief John W. Ridgdill reported that the number of arrests for drunkenness was surprisingly small. Foin white men and two neg- roes were arrested Friday through Sunday night for drunkenness. Joe Grace, Lannie Payton, O. L. Wyatt and L. H. Black forfeited $1(1 cash bonds in municipal court Monday morning. Fred Willis and Nolan Easier negroes, pleaded guilty to drunkenness and each was fined $10. Although shopping was heavy in stores Friday, there was only one arrest fur shup-lifling. Jack Knoblc, negro, was arrested for stealing a pair of gloves from the Burr Store company. He pleaded quilty in municipal court Monday and was fined $25 and sentenced to one day in jail. Police Chief Hidgdill expressed yratitiide to the motoring public for its obedient attitude tu traffic regulations, especially during the traffic jam of downtown slrct'Ls Friday. He reported that his officers en- luyecl fine co-operation from drivers m their direction of traffic. A Thought t-lessmgs ever wait on virtuous deeds, and through a lale, a sure jvward Mr.'cucds. -Congrcve. 1. Dues the Bible uphold capital punishment? 2. The I. Q. rating uf a normal individual is rated at 100. What is the raliny for sub-normal pei'soi;.^.' Fur gifted persons? 3. In underground caves Mala- cititcs and stalagmites are fiv- (luently found. One hangs from the ceiling, ihe other rises from the floor of the cave. Which are slal.ic- tites? 4. Psychologists assert there me but three primary human finu- lions. Can you tell what tlu;,e three are? 5. How can one approximate the height of a tree without climbing it? Answers o« C'lii i.siticd 1'iiKo R. F. Elgin, 88, who made the original surveys for the townsites of Prescott, Emmett and Boughton when the Cario & Fulton railroad (now the Missouri Pacific) came through Nevada county, in 1873, died at 6 o'clock Christmas morning at his home in Emmett. He had been ill for several years. Only eight days before his death he and Mrs. Elgin celebrated their 63d wedding anniversary—he had tak- the former Emma Eaves as his bride in 1874, the year after the construction of the railroad. Emmctt's First Citizen Mr. Elgin had followed the railroad- building west from Prescott as far as Emmett, where ho settled, becoming the first depot agent. Besides Mrs. Elgin, the survivors are: One son and one daughter, Theodore Elgin of Magnolia, Ark,, and Mrs, Minnie How£.l-U- v £#* Ketchican, Alaska. The funeral was' held at 1 o'clock Sunday afternoon, with burial in Snell cemetery at Emmett, the services being conducted by the Rev. J. Frank 7/al- ker, pastor of Emmett Methodist church. Mr. Elgin's part in the ephocal drama of railroad construction in 1873, which changed commercial and ' transport history and scrambled the old-time county-seats of this section was told by R. P. Hamby of Prescott in his Nevada county history whitten especially for Hope Star's Centennial Edition of June 26, 1936. Mr. Hamby's account in part follows: "In the summer of 1873 the Cario & Fulton Railroad, afterwards becoming the St. Louis, Iron Mountain & Southern Railway and now known as the Missouri Pacific, was constructed across the northern portion of Nevada county, townsites being surveyed for Emmett on th western and Boughton near the eastern boundary. The first passenger train arrived at Boughton July 4th of that year, the even being celebrated with a picnic which was attended by many Southwest Arkansas politicians who delivered speeches. Freight from Little Rock for Fulton arrived at Ennnel, then the end of the tracks, on August 12 and was hauled overland to the river town. Prescott Gets Railroad "The railroad officals contemplated the construction of a spur tack to accommodate the merchants at Moscow, but were persuaded by Robert Burns, a young merchant at Moscow, who had moved his stock of goods from Little Rock overland ahead of the building of the railroad, to lay out a lownsite on the railroad near Moscow. This survey, a.s well as those of the Einmetl and Boughton town- sites, was made by R. F. Elgin, who became Emmet's first station agent. Dan Cunningham who became the first depot agent at Prescott and Jim Kearn, railroad engineers, assisted by W. H. Prescott, county surveyor. "John Elkanah Whiteside, then a youth of 20 years, who was clerking in Burn's store at Moscow, early one Sunday morning in August following the completion of the survey on Saturday, locate^ the engineers stakes and had the distinction of being the first U) walk on the streets of the new town. Mr. Whiteside, who recently died at his home in Jonesbora, La., j was the father of Garrett Whiteside, private secretary lo Senator Hattie Caraway and Mrs. Rcma Brown of Mineral Springs. "The survey was made August 8th and within ten da^s thereafter Burns had erected his one-room frame store ; building on the corner of Wesl First iind Main streets, facing the railroad, and on this building on the following Lunduy the town's first religious scr- ! vice was conducted by the Rev. Thus. Aaron, a traveling Protestant Methodist minister. "Within a week Steve Cantley, another Moscow merchant, bulit his store across Main street from Burns. Mr, Cantley, who died several years ago was the father of E. B. Cantley if Hut Springs and the late Will Cantley of Hope, and his widow Mrs. Mattie Cantley continues lo reside in i Frescott while a daughter, Mrs. Adah Boney, lives in Stamps. "With the strating of a new town on the railroad Moscow went completely out of the picture, not a single iContimied on Page Six) 3.5 Inches Rain Here Since Thursday, and End Isn't in Sight There was no indication of a letup in rainfall for this section in the weather man's forecast Monday noon, which predicted continued cloudy weather for Monday night and Tuesday with occasional rainfall. There had been nearly three and a half inches of rainfall here since last Thursday morning, the Fruit & Truck Branch Experiment station reported. The heaviest precipitation was for the 24-hour period ending at 7 a.m. Monday in which 1.70 inches was recorded. Nearly half an inch fell between 7 a.m. and noon Monday. 4 Indies at Texnrkana TEXARKANA — (/P)— Four incres of rain fell here from 9 a.m. Sunday until 7 a.m. Monday. ailattrnaiFlB Mack's Tourist Camp Is Hijacked Lone Negro Bandit Gets Only $8 in Robbery Sunday Night Mack's Tourist Court on Highway 67 two miles west of Hope was held up and robbed by a young negro bandit at 8:30 p.m. Sunday. The negro escaped with approximately ?8. Mr. and Mrs. J. F. Mclntosh, proprietors, were alone when the negro, aged about 20, wearing a raincoat, entered. He first said that a tire was flat on his automobile and asked that it be repaired. As Mr. Mclntosh started to the toolbox the negro pulled a pistol from his pocket and asked for the money-box. Mr. Mclntosh handed it over. The negro backed out of the front door and disappeared. He fled on foot as he was tracked several hundred yards along the Missouri Pacific railroad. Officers were called to the scene, but after a search were unable to find the negro. There had been no arrest Monday noon. The negro was said to be nicely dressed with the exception of mud- spattered trousers. Police said he was a "high-brown." • i • 501 Deaths During HolidayWeek-End Fatalities Are Divided Between Murder and Traffic Accidents Violent death claimed at least 501 lives as the nation's price for one of the most extensive Christmas celebrations in years. The double holiday, crowding highways with an unusual burden of homeward-bound travelers, swelled the toll above normal years. Traffic accidents caused many times the number of deaths as any other led the nation with cause. Pennsylvania 41 death. Arkansas had 10 traffic deaths, one train fatility and one drowning. A Heavy Toll By the Associated Press Merry-making turned to tragedy Sunday amid the violent deaths of more than 405 victims throughout the nation over (lie Christmas week-end. Illinois led the nation with 3,'i violent deaths .including 26 auto traffic fatalities, three persons shot, two suffocated and one hanged. Pennsylvania followed closely with 32, Ohio 31 and California 30. In Lynchburg, Va., the bodies of Mr. and Mrs. William A. Knights of Fredericksburg, married only four months ago, were found locked in a death embrace in a hotel room. A tentative verdict of murder and suicide was given by the coroner. Missouri reported seven deaths—a murder-suicide, two drownings, one fell downstairs at a Christmas party, two died of carbon monoxide at a tourist camp. Kentucky reported 13—seven auto fatalities, four shootings, one stabbing, one dynamite-cap explosion in celebrating Christmas. A woniau fell tu her death in a subway in Boston. In Arizona a hobo fell lo his death beneath the wheels of a boxcar. Abroad, London reported at least one fatality from the worst Christmas fug since 1904. Violent deaths by slates included: Alabama 19, Arizona 4, Arkansas 8, California 30, Colorado 2, Connecticut 10, Delaware 4. District of Columbia 3, Florida 14, Georgia 8, Idaho 1, Illinois 33, Indiana 7, Iowa 3, Kansas 4, Kentucky 13. Louisiana 5, Maine S, Maryland 14, Massachusetts 8, Michigan 12, Minnesota 9, Mississippi 5, Missouri 9, Nebraska 2, New Jersey 12. New York 11, North Carolina 4, Ohio 21, Oklahoma 8, Oregon 6, Pennsylvania 32, Rhode Island 1, South Carolina 7, Tennessee 10, Texas 14, Utah 2, Virginia 10, Washington 9. West Virginia G, Wisconsin 5. America Accepts Japs' Note; Only Issue Now Is Pay Grave International Crisis Arrives at Peaceful Conclusion TAKE 7TH CAPITAL Tsinan, Shantung Capital, Falls—Foreign Rights Menaced WASHINGTON -(/P)— The Department of State indicated Monday it considered a "closed incident" the international situation arising from the bombing of the gunboat Panay, although indemnity remains to be fixed, Japs Take 7th Capital SHANGHAI, China.-(/P)—The Japanese army announced Monday night the complete occupation of Tsinan, capital of Shantung province, seventh provincial capital to fall to Japanese forces. Japanese dispatches also reported the capture of Weihsien, important junction apoint on the railway between Tsinan and Tslngtao, chief port of Shantung province. "Open Door" Tlirealcned SHANGHAI, China.—(/P)—Japanese authorities Monday announced new rules and regulations for Japanese-occupied areas of China which apparently raised the vital question of the treaty rights of other foreign powers.. A Japanese embassy spokesman said the rules, applying to persons entering or residing in, such territory were "applicable to all persons, including the nationals of third powers," ••iEae.. strict regulations provided,' among other things, a death penalty for commission of acts against Japan's" armed forces. Embassies Not Informed The spokesman said that enforcement of the measures would make Americans and other foreigners subject to Japanese military law. He said foreign embassies had not been informed of the regulations which partially would withhold extra-territorial rights and privileges of other nations based on present treaties with China. Under current treaty rights foreigners, except Russians and Germans, are subject only to the laws of their own nations. Because China no longer holds such territory the spokesman said that acts against Japan's armed forces would be questions for settlement only between Japan and any third government involved. Though the rules referred specifically to the Hongkew and Yangtzepoo districts of Shanghai and spokesman, said similar regulations would be enforced elsewhere in China, It was learned that a Japanese request against reopening of foreign embassies might halt immediate repon- ing of the United States embassy in China's cunquerrcd capital as planned. Tsinan Captured Capture of Tsinan, capital of Shan- tiuig, by a Japanese army was reported today in dispatches from North China. Other Japanese columns, having forced crossings of the Yellow river at several points in northern Shantung, were pressing southward into the heart of the province. South of Shanghai another Japanese army extended its conquests in rich Click lang province. Hangshow, provincial capital, fell to the invaders Christinas Eve. The report of Tsinan's fall came by way of Hankow, one of China's three temporary capitals, and was not con- finned by dispatches from Tsingtao, Shantung's chief port. However, Tsing- tao previously hud reported its communications with Tsinan had been ruptured. If lsinan has been captured it is the seventh Chinese provincial capital to fall to the Japanese, in addition to Nanking, the national capital. The others arc Paoting, Hopeli; Kalgun, Cliahar; Kwcisui, Suiyan; Taiyuan; Chinkiag, Kiangsu; Hanghow, Chc- kiangg. "Amicable Settlement" TOKVO, Japan.— (A'l~ Foreign Minister liirota said Sunday that the United Suites and Japan had reached an "Amicable settlement" of the crisis arising from the Milking of the American gunboat Panay by Japanese warplanes. llmita's .slate-incut was made to Ambassador Joseph C. Grew when the latter handed him Secretary of State C'uidell Hull's note accenting in the, main Japans amends for destruction of the Panay and three American merchant vessels on the Yanktze river December 12. High officials showed relief at the (Continued on Page Three) Cotton NEW ORLEANS—(/Pi—January cotton opened Monday at 8.32 and closed at 8.29 bid, 8.51 asked. Spot cotton closed quite three points up, middling S.53.
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