Lincoln Journal Star from Lincoln, Nebraska • Page 1

LINCOLN, NEBRASKA. TUESDAY. JULY 26, 1938. FIVE CENTS. POWER FIRMS OFFER TO SELL SCENE OF A FIGHT FQRHVFJOURS Japanese Newspapers port Soviets Crossed Border, Thrown Back.

TOKYO. (UP). Japanese newspaper and news agency dispatches from Manchukuo reported serious between Russian and Jap- anese-Manchukuan forces on the Siberian frontier near the scene of last week's dangerous dispute. The newspaper Nichi Nichi in a special dispatch from Mutankiang, Manchukuo, asserted that SOO Russian soldiers crossed the frontier and were thrown back by Manchukuan troops after a five hours fight. Previously the Domei news agency had reported that 20 Russian infantrymen and cavalrymen crossed the frontier and were thrown back by frontier guards.

The Domei dispatch said that the Russians crossed the frontiet at an unspecified point, and penetrated into Manchukuo for a distance of 110 yards before they were repulsed. LABOR FAVORS FOURTH MILL LEVY FOB SCHOOL Pryor Says People Would Approve; School Board Takes No Action. The board of education Tuesday received a delegation urging immediate application for a PWA grant to assist in building a high school on the Northeast but no action was taken. In group were a committee from Central Labor union consisting of Britt Pryor, chairman, A. M.

Xelhay, Mary Tankersly, L. N. Witter, Charles Legge and Fred Eissler; L. B. Skold of the Nebraska Home Merchants association, and Harry Spencer of the University Place Business Men's association.

Members of the board decided to delay action on the proposal until Bother groups in the city have had full opportunity to express an Opinion. The labor union committee presented a resolution, which was unanimously adopted Monday night, requesting the board to apply for the 45 percent grant and favoring a quarter of a mill additional tax levy to finance Lincoln's share of the cost. The quarter mill levy would bring in approximately $20,000 a year. Pryor declared he and his committee believe the people would approve an additional quarter mill levy. He pointed out that this is only one eighth as much as the on Page 4, Col.

4.) NAZI SALUTE GIVEN MARTIN BY OFFICERS Four Men on Trial Greet IT. A. W. Union Head as "Heil, Hitler!" DETROIT. (UP).

Four international officers of the United Automobile Workers union marched Into their trial before the union's executive board with arms outstretched in a nazi salute and shouting "Heil at Presi- nt Homer Martin Richard Frankensteen, Ed Hall, "Wyndham Mortimer and Walter Wells were called to trial for "conspiring with communists" to disrupt the union. The trial scheduled to open Monday was interrupted when angry rebel unionists smashed their way into the union headquarters and staged a sit- down. Trial proceedings were conducted in a secret session by the international executive board with Martin presiding, but a description of the scene was supplied to newspapermen by Maurice Sugar, attorney for the defendants. Sugar asked that he be allowed to make several preliminary motions. Martin granted the request but turned down Sugar's proposal that the defendants be allowed to bring their own stenographer.

IN DEATH OF CHILD Dan Byrne Omaha, 2, Killed by Truck. DETROIT. (UP). Marcus Stuen- del, 21, was held by police Tuesday on charges of negligent homicide after he struck and fatally injured Dan Byrne, 2 years old, who came here a week ago from Omaha with his family to visit friends. The boy was crossing a oot with his sister, Frances, 12.

en the truck driven by Stuendel inded a corner, brushed her and led Dan under the wheels. He dead on Admittance to Henry Ford hospital. ETduardo Santes Is Unhurt by Plane Santes (above), president- elect of Colombia, was In the presidential stand at Bogota when a military airplane fell Into the crowd during maneuvers, killing more than 30 persons and Injuring 150. COMMITTEE TO LIT TVA COUNTERCHARGES Lilienthal to Make Reply for Record, at Frazier Suggestion. KNOXVILLE, Tenn.

m. Bitter charges and counter charges in the congressional investigation of the TVA were cut short when the committee agreed to move on to "the more constructive phases" of the inquiry. Director Lilienthal was answering charges by Dr. Morgan, ousted TVA chairman, when committee members voiced their impatience with continued personalities. Lilienthal had accused Dr.

Morgan of "collaborating" with private utility executives in 1936 on a plan for power pooling and concealing his actions from the TVA board. He denied that he released false publicity concerning his negotiations with Wendell L. Willkie, president of Commonwealth and' Southern, for the sale of proper- to public interests. Lilienthal was asked to submit his contentions for record without reading them from the stand. Senator Frazier broke in to say too much time was being taken and suggested Lilienthal submit the statements for the record.

"It would suit me," the director replied. "I'm not enjoying this either. I'm not doing 1 this because of something I initiated but I lave my honor and the honor of TVA to defend." In the document which Ltlien- submitted, he asserted Dr. Morgan conferred with George W. Hamilton, a former Insull utility executive, and that the board knew of this conference.

However, he added, it was not tnown last week "how he had jone with Mr. Hamilton to New York for the express purpose of securing advice with respect to the feasibility of the plan (power pool) he intended to propose." Lilienthal said Dr. Morgan con- 'erred with Owen D. Young, chairman of the board of the General Electric company; Samuel rerguson, president of the Hart- Electric company; F. E.

Schmidt, editor of the Engineering News Record, and Ralph Rounds, a New York attorney. CONNELLY ANJLKS DEPUTY Lincoln Man Appointed to East Nebraska Post. Thomas J. Connelly, Lincoln ad- 'crtismg man, was advised of his appointment as district deputy of the Elks lodge for east Nebraska. He is one of the two state deputies and his 1 i ction consists of ten towns, including- Lincoln and Omaha.

Mr. Connelly a exalted ruler of Lincoln lodge of Elks last year. He Thomas J. Connelly was appointed by E. J.

McCormick of Chicago, grand exalted ruler, to succeed Lloyd E. Peter- ion, Falls City attorney. STATE-FEDERAL AGENCIES BRING Tax Board Report Indicates Increases Due to More Joint Activity. Hising governmental costs due to the broadening of state and federal co-operative agencies come to light in the report for the fiscal year ending June 30, issued Tuesday by State Tax Commissioner Smith. Thru Nebraska's state treasury during the year poured $29,062,986, which was $6,489,595 more than for the fiscal year of 1935-36.

before joint activities really got going at full speed. Expenditures for 1936-37 were $30,922,640. Responsible for the major part of the increase of the biennium of 1935-36 is the social security program now under full steam and forced draft. This program, which gives aid to the blind, the aged and to dependent children accounted for $4,632,904 of the climb. In the latest fiscal year the relief agencies spent $6,764,793.

for assistance and when the program still in gestation two years ago only $2,131,389 was spent. The a department also showed a prodigious leap, taking a flight from $12,121 In 1935-36 to $186,930 in 1937-38. This was caused by the employment agency and the unemployment compensation division, both of which are social security arrangements. co-operation with health, "highway and vocational education also contributed to the upward trend of the appropriations. Another salient result of the additional labors the state performs is the expansion of the amount spent for salaries and wages In departments and institutions.

This particular fund rose from $4,878,331 In 1935-36 to $5,550,486 during the most recent fiscal year. Since July 1, 1937, there has been spent $29,062,986, leaving available from state tax, federal and cash funds $41,120,386, which in turn leaves a balance of $12,057,400. The legislature tit 1937 appropriated $56,084,616 for the biennium which ends June 30 1939. Of this latter amount $12,629,761 represents estimated expenditures from strictly state tax funds, Jie rest to come from cash receipts and federal funds. Tax funds for 1937-38 are $813,556 more than for 1935-37, but are $15,904,478 ess than the peak of $18,816,205 reached in 1921-23, according to Commissioner Smith.

EARIE'S PROGRAM IS TO PASS LEGISLATURE FAMOUS HOSTESS DIES. LONDON. Frances, countess of Warwick, famous hostess of Edwardian days, who startled iociety by entertaining both royalty and socialists, died Tuesday at her home at Enslon lodge, Dunmow, Seventy-six, she was the grandmother of the present holder of the Warwick itlc, the seventh earl, who recently had a Hollywood film con- ract. KEEPER, BETZ NO WORSE Attendnnts at St. Elizabeth hos- ital said Tuesday afternoon the conditions of Glon Kecfer and Fred injured Monday noon in a car-truck collision near Epworth park, remained unchanged.

Both were seriously but not critically hurt. Five Point Project to Head Off Grand Jury Investigation. HARRISBUG, Pa. Gov. Earle's grand jury quashing program won unanimous approval of he house of representatives on first reading hut a bolting democrat fired opposition to one phase of the five point plan in the senate.

The five bills drawn to half the Dauphin county (Harrisburg) grand jury investigation of the governor quickly passed the first of three tests on the house floor. Two more votes are required. In the senate, Senator Cavalcante made an attempt to nullify one of he five bills--the one which would assure the right of an at- general to supersede a dis- rict attorney in criminal proceedings. HARRISBURG, Pa. UP).

Administration strength in the Pennsylvania house committee on state government overrode a brief show of opposition and approved Gov, Earle's five point program drawn to head off a grand jury investigation of himself and 13 associates. Committee members put their "o.k." on five bills--submitted Monday night aa the special legislative session convened--only after a warm democratic debate and suggestions to amend. The proposed amendments. It was said, were "purely technical" and would in no way change the intent of the bills. Much of the committee argument centered around the measure to require public presentation of evidence to a grand jury in cases where civil officers, liable to impeachment, were under fire.

Some democrats in the committee insisted this was "class legislation" and predicted the argument on this.score was not finished. The bills were advanced to first reading in the house. The vote waa not disclosed. A majority is required. OPERATE ON SINGER.

HOLLYWOOD. (JT). Jenncttft MacDonald, film singer, wan recovering from a minor operation of an abscess in her right ear. MISSOURI RIVER STAGE. Ry Th? AiMMlRlrri At 7:30 a.

m. at Omaha, 12.3 feet (flood stage 19 feet). A Nice Weekend at Shady Rest CAN'T KEEP WAGES OF STEEL WOMEN HIGH Ballard Says Would Mean Injury to Employes and Employers. WASHINGTON. UP).

Ernest S. Ballard, counsel for the Inland Steel company, Chicago, testified high wages "cannot be maintained static in the face of present economic conditions without njury to employes and employers alike." Ballard gave his statement to labor department's public contracts, board taking testimony to determine the prevailing minimum wage rate employers must pay while performing governmental steel contracts. "The establishment of a high wage rate largely in excess of that aaid in other industries will en- ivltably cause the prices of steel Jroducts to be out of line in rcla- to other goods, and consequently restrict their consumption. This will react to the detriment ef any, plans for increasing employment." The establishment of a wage scale too high in relation to economic conditions, Ballard asserted, would encourage increased use of abor saving devices. A reduction of man-hours would result.

He ex- jressed the opinion that employes lave a greater interest in weekly or monthly earnings than in hourly rates. LAST RITESJOR HOWARD Friend and Foe Gather With John Lewis. COLORADO SPRINGS. (JP), Triend and foe gathered with John Lewis for the funeral Tuesday of Charles P. Howard, president of he international typographical union, who died Thursday.

Heading a list of I. T. U. leaders was Claude M. Baker, San Francisco, American federation of la)or man who defeated Howard for he union presidency.

Others were Voodruff Randolph of Indianapo- is, secretary-treasurer, and Francis Barret, New York, first vice LORENZO HARVEY ESCAPES Penitentiary Truity Had Only- One More YearTo'Serve. Still missing Tuesday afternoon waa Lorenzo Harvey, 27, Negro penitentiary trusty who escaped from the prison garden Monday afternoon. Deputy Warden Olson said the-guards missed Harvey at 3:30 p. m. but no alarm was sent out until after a gate count was made at 5:30 p.

m. The escaped prisoner was sentenced from Omaha April 30, 1936 for five years on a charge of breaking and entering and had only one more year to aerve Olson said. He had been a trusty for about two months and for a while previous to his break Monday had been working in the fields at night. He is described as being 5 feet 8 inches tall, weighs 147 pounds, has maroon colored eyes and a black, short cropped mustache. He was wearing waist length overalls, a gray shirt and prison shoes.

TO SACRIFICE HONOR Chamberlain Tells Commons of New Effort to Settle Czech Dispute. LONDON. UP). Prime Minister Chamberlain declared in the house of commons, amid cheers, "let no one imagine that tho we seek peace we are willing- to sacrifice even for peace British honor and British vital interests." "Our aim is not the less peaceable because no one can imagine we have reason to fear any foe," he declared: Chamberlain asserted that the armed strength of the country became more formidable day by day and went on: "But while that tremendous power remained as a guarantee that we could defend ourselves if we were attacked, we were not unmindful of the fact that tho it was good to lave a giant's strength it was tyrranous to use it." The prime minister announced Viscount Runciman, former cabinet minister, had agreed to (Continued on Page 4, Col. 2).

State Government Costs NO. Ill STATE UNIVERSITY. The 14 special activities of the itate university have been placed mder its control by agreements the state and the federal g-overnment or by the legislature. For these activities approprla- ions must bo made by the Icgls- ature. These activities are icrvices to the people of the state and are intended to contribute to he improvement of agricultural methods or other practices.

They Include: The agriculture experiment sta- ion at Lincoln; the agricultural xtenslon service here, substations at North Platte. Mitchell and Val- ntine; the Box Butte experimental farm at Alliance; the fruit arm at Union; the Agronomy farm at Havelock; the state hog cholera serum plant; conservation and survey division; university museunj and art gallery; university hospital and dispensary at Omaha for sick and poor. The dental clinic at Lincoln, and the state' legiHlative reference bureau and blue book are also included. For the year closing June 30, 1938, the financial statement of the university could be summarized by the expenditures according to funds as follows: Taxation money, 11,878,342 or 48.6 percent; cash funds $1,436,420 or 37.1 percent; federal funrf.i $551,862 or. 14.3 percent.

The total is $3,866,625. This Is the 43rd of a series of articles on state government costs. will follow, WHEAT LOAN PLANS DISCUSSED TUESDAY No Decision Yet on Lending on No. Storage on Mortgage Basis. Preparations for getting final machinery set up in Nebraska immediately in putting federal wheat loans into operation were being made here at a state AAA meet- Ing of district and state farm program officials.

The conference closes Tuesday evening. William McArthur, regional commodity loan director for the north-central region, appeared on the morning session, presenting the latest information on wheat loans. Omaha is a basic terminal point In the loan program. Loans on No. 2 wheat there are made at 71 cents, less freight and a 4 cent handling charge at outstate points.

Commercial storage of wheat under the loan program, will be handled on the same basis as were corn loans. Farm storage will be on a chattel mortgage basis. All federally licensed warehouses are eligible for storage of the grain under the plan if they sign a warehouse agreement with the Commodity Credit corporation. The larger elevators in Nebraska now have signed such agreements. McArthur suggested a farm storage educational campaign in Nebraska to acquaint farmers with storage regulations under the plan, and also to better acquaint them with the best facilities.

Cooperation between the state agricultural conservation committee and the agricultural college extension service In such a program was urged. Recognizing the fact that much Nebraska wheat Is low In test weight this year and ineligible for (Continued on Page 4, Col. 1.) PINNED UNDERNEATH AUTO Mrs. Ernest Schmidt Drowns as Car Falls in Ditch. BLUE HILL, Neb.

UP). Mrs. Ernest Schmidt, drowned Monday night when an automobile pinned her in three feet of water in a highway washout near here. Her husband and 3 year old sonM crawled to safety. Mr.

Schmidt, driver of the machine, said he struck the washout in the dark and the car overturned. Mrs. Schmidt was a sister of Andrew Busking, killed in a notorcycle-car i i near Lawrence July 4. IRA CLINEJJIES TUESDAY Operated Grocery on Holdrege Street for Years. Charles Ira Cllne, 65, retired grocer, (lied early Tuesday at his lomc, 4305 Adams.

He operated a store at 23rd and Holdrege for 23 of the 35 years of his residence in Lincoln. Surviving are his wife, Ella two daughters, Mrs. Ethel Gardner and Miss Margaret Cllne, and a brother, W. C. Cline of Bennot.

THE WEATHER. Far Umwla tul4 vicinity: tjBMttled HXnnl.r. protoMy (lumen or mot ninth ta Nrbnttklt; U.HttleJ (might And protably tlMwera or much chance In trm- HOURLY TEMPERATURES. 3 p. m.

(Mon.) a at. IS 4 4 IT 8 p. II p. 87 71 7 f. 14 7 M.

II p. 81 p. It p. 77 It ft, 74 11 p. 78 11 ft.

75 11 p. IS ll 11 1 m. i p. 7H in 11 p. 85 Hlcltrnt tarn pent year JLoWfit a ago 01.

At (I: SO Dry bulb 77. wet bulb 70, rcUllvn humidity 71. At UtSO n. Ilry halh is, wet bulb trrage pvi At UtSO n. Ilry rrlnllvn humidity 74.

Total Mind movement. RAINS COOL STATE, HEAVY IN NORTHEAST Cover Wide Territory; Nearly Half Inch at Weat Point. Generous rains fell at Lincoln and other Nebraska points Tuesday as thunderstorms cooled the state, bringing; sudden downpours to scattered localities. In northeast Nebraska the rains were torrential. West Point had 3.41 Inches.

Dodge 2.50, and other towns reported totals well over an Inch. Continued unsettled conditions are predicted. In i precipitation amounted to .46, the weather bureau reported, .38 of which fell during an early morning electrical storm striking about 6:15 a. m. This was accompanied by sharp lightning which struck two Lincoln homes.

Light rain fell again about 11 a. m. Early afternoon reports by the Burlington railroad Hated rainfall of an inch at Dorchester during the morning, with moisture ranging up to a half inch from Crete westward to Hastings. On the Ravenna and O'Neill lints -U to inch fell and points north of Aurora had from to the heaviest total at Greeley Center. Lower.

Temperatures were chilled perceptibly by the sudden downpours, and by a moas of cool air reported moving In from'Canada which'was believed responsible a tor ma. Meteorologists said the cool air probably would waste itself before striking the southern border of Nebraska where temperatures were normal Monday. Lincoln's high reading was 89. A high of 98 was reported at Fairbury. A sudden downpour of almost cloudburst proportions deposited .64 Inch of rain on Omaha in 15 minutes.

The shower began at 5:45 and ended at 6 a. m. No damage was reported. Total rainfall during the 24 hours ended at 8 a. m.

was .85 inch. Rainfall in the northeast territory, reported by the Associated Press: Weal Point 3.41, Scrlbner 1.34, Beemer 2.no, Wiener 1.25, Pllgcr 2, Sianton 1,50, Meadow Grove 1.50, Oakdalo 1.25, Snyder (Continued on Page 4, Col. 2), RADKE SAYS COCHRAN "MEDDLING" LOCALLY Asserts "Machine" Grabbing 1 for Power Thru- Oounty Assistance Jobs. Franz Radke alleges that merit system examinations to be given by the Cochran dominated board of control to applicants for county assistance jobs will give the "machine" power to dictate these county appointments. "No county assistance committee is now supposed to hire any help without a permit from the board of control.

It is now planned that no county committee can hire a clerk unless he or she has been stamped O. K. by the machine," Radkc said, "Not content with flock of well paid jobs--salaries from $90 to $200 per month--which are properly in the state assistance setup the machine wants to regulate the county jobs too. These relief money distributors and inspectors come into contact with a lot of people. They could be used to influence a lot of votes.

'The legislature never gave the statehouse machine power to dictate county appointments. Full power to appoint whomever they see fit is given the county assistance committees. But the board of control is holdintj the examinations anyway. A third term candidate cannot afford to overlook anv chances. (Section 68-328, comm'led statutes 1937, prcfvides: "Tho county assistance committee shall have the powers and duties now or hereafter vested in it bv law.

It mav employ such clerks and assistants as may be necessary to enable it nropcrly to administer its CENTRAL POWER, NORTHWESTERN, READY TO DEAL State Conditions for ferring Plants; Doubt Will Be Met. By L'nlttd JPrww, Two private power companies of Nebraska offered tentative acceptance Tuesday to proposals made by the three big public power districts to purchase their properties. The companies are the Central Power, with plants at Kearney, Grand Island and Nebraska City, and the Northwestern Public Service company, which accepted tentative offers for its plants at Columbus and North Platte. The acceptances were based in all Instances on the provisos that the plan be accepted by the city councils of the cities affected, and by 90 percent of the bond and stockholders of the companies. Provisions set down by the companies must be met by Sept.

30. It was learned unofficially that the price of $8,785,000 originally offered for the two companies, which controlled by Middle West corporation of Chicago, had been raised by about $2,500,000. Efforts to obtain the definite figures failed, officials of the public power districts stating they must come from J. D. Ross, chief rate agent for the proposed setup.

Nebraska Electric at McCook some time ago had' assured city council there of a willingness to sell If a proper settlement could be arranged. Five other companies are considering tentative officers. The two largest of the private companies, however, a a Power and Iowa-Nebraska Power IJght, have steadfastly disclaimed any intention of selling to the public districts. Cott Not Revealed. KEARNEY, Neb.

(UP). The Central Power company revealed that It has accepted the price offered for its properties by 'Nebraska's puttie" and will sell if certain (Continued on Page 4, Col. f). G. 3.

SHAW IS 82. LONDON. UM. George Bernard Shaw, 82 years old Tuesday declined to give the world any of his advice or even celebrate his birthday. He remained at his country home, shunning the telephone and FRIENDS OF BLACK ASK STUDY QUASHED Resolution Target--Douglas Says "Death Sentence" Harmful.

CLEVELAND. UP. Two Alabama attorneys--one a "personal friend" of Hugo L. Black--attempted unsuccessfully to obtain withdrawal of a proposed resolution to have the American Bar association ask the U. S.

supreme court for information "eligibility" of its associate Justice Black. Edward T. Lee, dean of John Marshall law school at Chicago, refused at a public hearing of this association's resolutions committee to withdraw his resolution. The committee will go Into executive session later to decide whether the measure should be reported to the convention floor for a vote. An unidentified delegate meeting the attorneys, Judge Richard D.

Evans and Marvin Woodall, both of Birmingham, after the session, shouted "You have insulted Dean Lee." "We didn't Insult the Dean at all Evans retorted. "Your friend the dean insulted Justice Black." The delegate took several quick steps toward the two committee members from Alabama and they advanced to meet him. The delegate then turned and walked away. William O. Douglas, chairman of the SEC told the association's section of public utility law that "prophets of disaster" had "obscured the issues" presented by the public utility holding company act of 1935.

"The characterization in the heat of battle of that part of section 11 which calls for corporate simplification and geographical integration as a 'death sentence' has done inconceivable harm," he declared. NOVAK PLAINT DISMISSED Car Dealer "Irregularities" Are Cleared Up. The state highway department advisory board Tuesday conditionally dismissed a complaint against Frank R. Novak and Willys of Nebraska, Omaha, for certain irregularities under the state law. The-board found that the irregularities were primarily due to unauthorized acts of agents, and the complaint was dismissed on condition That the firm make due application for license witMn ten days.

The board held that the firm was now properly incorporated, altho it was not when applied for license on April 1. CORRIGAN BROADCAST. NEW YORK. Douglas O. Corrlgan, trans-Atlantic flier, is scheduled for a two overwus broadcast 4:45 p.

m. TWWJRJ over WEAF-NBC from.