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Abilene Reporter-News, The (Newspaper) - January 1, 1938, Abilene, Texas VOL. LVII. OR WITH OFFENSE TO OK SKLJCH YQl'R WORLD EXACTLY AS IT- Aliocut.d ABILENE, TEXAS, SATURDAY MORNING, JANUARY 1, 1938. -TEN PAGES. President Slashes Price Of Silver umt.d (UP) NUMBER 229 1938 Dawns With Universe Fearing Second World War B.v JOHN EVANS Associated Press General Forelm Editor. Ouns ,-Jiot out the old year and bombs blew in the new. Three nations are at war and most of the universe is sharpening swords. They go into 1938 with fear of another, greater world war. Yet with the arms race on, mil- lions of men In armies and billions being spent in munitions, the world stands shocks that some years ago would have had a dozen countries fighting. Statesmen are piuzled lo, know whether It is safer to play peaceful parts and stay off their "neighbor's toes or furbish their weapons. They remember the military adage that attack is the best defense.'- Whether 1938 brings big war or continues in noisy, truculent none can doubt there is fuel ready for-uny sort of conflagra- tion. There was spent during 1931 alone nearly or more than the value of half of all the mone- tary gold in tlio world. There was spent three times as much as four years ago. Each year, war on "national de- fense" expense has gone up. Many nations Uiought it vital to be well armed and nowhere has there been great apparent opposition by "the bulk of people who pay (he bill in blood and taxes. Typical of the times is Great Britain which appropriated early in 1937 for a five-year program for enough airplanes to defend the empire, a navy to control the seas and protection from death that rides the skies. Great Britain wants gas masks for every man woman and child. Wars without declarations of war are the style. Japan invaded China in July, swept North China and the Shanghai-Nanking area with armies and bombing air squadrons. The fight goes on. Spain is in the 18th month of civil strife as bloody and bitter as when It began. Palestine is under a close ap- proach to martial law to quell the Sec 1838 BORN, Tf. 5, Col. 6 Dies Of Bullet Wound SAN ANGELO, Dec. 31 J. E. Beaty, 19. of Bronte, was fatally wounded while hunting near his farm home, five miles northwest of Bronte, this afternoon. He died in a San Angelo hospital shortly be- fore midnight. Bcaty was driving when a cousin dropped a .22 rifle as he fell from the running board of Ihe car, the gun discharging a bullet that en- tered Bcatys cheek and lodged In his brain. Guns Shoot Out The Old Year, Bombs Blow In New Three Nations At War, World Whets Swords SLAIN ABOARD OWK YACHT DWIGHT fAVUnSQ- Dwight Faulding (left; wealthy Sinta Barbara, Cal., man, was shot to death on his yacht Aafje. 190 miles at sea of San .Jack. Morgan, an adventurer who cided to .-turn pirate and who laier was tossed Into the either unconscious or dead, fed- eral agents disclosed after ques- tioning six survivors of the ill- fated cruise. Mrs. Gertrude Tur- ner Paulding's friend, JIBS. GERTRUDE TURNER was among the survivors. After killing Faulding, Morgan is said to have ruled the yacht at gun point. He locked all in their cabins' except his wife, an ex- ..pectant mother. .Robert Home, V escaped" from with -a marlin .spike. He and George Sternack, a guest on the yacht, then tossed Morgan overboard, not knowing or car- ing whether he was dead or alive, FBI agents reported. Murder Charges Filed Against Two In Yacht Piracy Mystery LOS ANGELES, Dec. authorities filed murder charges today against two amateur crewmen who, they said, ended the pirate reign of Jack Morgan. 28. on the yacht Aafje by tossing liim overboard neai the Mexican west coast five days after he slew the wealthy owner. Dwlghl L. Faulding. 49. Santa Barbara hotel man Assuming Morean had plunged to his doom, federal agents charged Robert Home, 27. and George Spornak. 19. with causing his death by drowning. John Hanson, federal bureau ol .investigation chief here, said the youths told him Home felled Mor- gan with a spike and they dumped him overboard about 10 miles from shore, not knowing whether he was dead. The youths and other members of the original cruise party ol eight, Hanson said, reported Morgan killed Faulding three hours after the schooner yacht left San Pedro on Dec. 20. While Faulding was at the helm, Morgan suddenly appear- ed with a pistol, said "get away from tliat wheel, I'm taking com- mand here." and then shot him when tried to argue HELD INCOMMUNICADO Home and Spemak, a former Granville. N. Y., football star, were ordered held incommunicado pend- ing arraignment Monday. Morgan's 17-year-old wife, the former Lillhn Casanova of New Orleans, was held under bord as a material witness. Hanson snid Mrs. Morgan told him husband "seemed to go crazy'1 as he shot Faulding and thenceforth kept the others in ler- ritied subjection. The others aboard were Mrs. See PIRACV, 5, Col. 5 Natl Boy Scout Prexy To Visit Walter W. Head, St. Louis In- surance executive and president of the Boy Scouts of America, will be Ihc guest of Abilene scout leaders nnd scout.'; Thursday and of nest week, It was announced yes- terday. A round of activities Is being ar- ranged by Chisholm Trail council executives to honor him, said Presi- dent s. Cummings. Among them will be a meeting Thursday night, possibly in the form of a banquet, at a place to be decided later. Definite arrangements for Ihe event arc being worked out by a committee named by Cummings. consisting of Dean R. G. Boger of McMurry college, James P. Stln- son and Thomas E. Hayden Jr. Invitations to attend Thursday night's affair are being sent fac- ulty members of Abllenes three col- leges, members of the various civic clubs, and other groups. Scout- sre BOY SCOUT, rr. coi. a NOISY New Year-Cocky And Unafraid-Swaggers Info Abilene Midst Rousing Welcome; 1937 Bows Out Bv FINIS MfJTTnrss'trc'Atv i ___ By FINIS Young 1938 swaggered into Abi- leen ls.ll night a cocky, noisy new- comer, unafraid of his welcome. The new year WAS greeted, the old oanlsJied by a burst of noise which began early In the evening Fire- crackers boomed along downtown streets and merrymakers held watch parlies. What matter Mf they drooped sleepily this morning They bade farewell to a is months kind to many, welcomed wllh con- fident hope another such period expected to hold even more for Abilene folk and Ihclr neighbors. One of UK most Impressive tlcs was (hat which kept vljii the comer ol Soutiv First Chestnut strtels. H was the 53d such tribute to bilovcd "Chief Clinton- John J. Clfiton. the city's first msrshal, kept the peace New Year's eve Jf UBS. Jinks Me fife, sole survivor of the original walch party, kept Ihe tryst last night, li memory of Chief Clin- ton, on thrj stroke of midnight, he fired the ijoiy-handled .45 once by the peace officer. Several htadfed persons gathered on confer almost blocked traf- fic. Mayor: W. Hair and Chief of Police T A. Hackney represent- ed the cltyt official family. They heard McGee, hts head bared, dcstVibe circumstances of that first v'atch Chief Clinton possible bloodshed on that memorable occasion He raised the old-fashioned, single ac- tion revolver. j "I shoot IV McOfe said reverent- ly. 'In memory of the best peace of- ficer I ever knew." ns fired until the weapon was empty. Several other men drew revolvers, followed suit. Firecrackers flashed and boomed, almost drowned out the re- ports of gunfire. The parly was over, but Abi- lenc's celebration was just well launched. For half1 an hour auto- mobile horns, echoed and streets were crowded; old par is dead, long live Hi; nen-." i was their See NEW YEAR, rr. 3, Cal CALLAHAN WILDCAT FLOWS TEXAS' FOURTH! ORDOVICIAN PRODUCING AREA MAY BE OPENED 6 WlLES SOUTHEAST OF BAIRD Natural Production Of New Deep Test 10 To 15 Barrels Daily; Given Shot Of Acid BAIED, Dec. Possibility 'that Texas' fourth Ordovician producing area will be opened six miles southeast of Baird was enhanced tonight after the Woodley Petroleum com- pany wildcat, made a flow on head when given a treatment of gallons of acid. Operators reported the acid- ization had boosted the gas from almost mothing to ap- proximately feet per day, The test made a 15-mlnute head unloading oil which had been used In the acidation. Operators then swabbed out acid water ind fluid to the bottom of the casulg and the tsEt was to be shut in until morn- ing. Little increase, exctpt in was shown from the natural bailing oil producing formation.' Big lake .field In Reagan county J had been the only producing in Texas until the opening of a second pool by Gulf in Crane county and a third.by Hickok No. 1 Van Farmer in Eastland county two months ago. Top of the Ellenburger in the rotary test had been logged at feet.' it cored into saturation at feH and.recovered ten feet of lo a'tota! depth of showing no water! Natural production yas estimated at ten lo 15 barrels per day. It did not now unfil acidization this afternoon. Seven-inch S outside diameter, cas- ing had beerj set and cemented with i.'5 sacks feet. The well was spudded with cable tools until sur- face pipe ciuld be set. It is located near the center of the old shallow Woodley pool where production had been obtained sev- eral years from about 650 feet. No. 1 Plores is located 660 feet from the south and east lines of the southeast quarter of the north- west quarter of section survey, eist central Callahan coun- ty. Three other wildcat tests in cal- lahan are now seeking -production from the same deep pay. Near the Callahan-Eastland county ilne at Scranton, Phillips No. 1 Cozart is nearfng the Ordovician with cable tools. Hal Hughes, Abilene contrac- tor, is sinking two tests near Oplln in the southern part of the county. At least five tests have been drill- See CALLAHAN, Pg. S, Col. 4 Spanish Insurgents Recapture Teruel MENDAYE, FRANCO SPANISH FRONTIER, Dec. in- surgent broadcast from Salamanca tonight announced Generalissimo Francisco Franco's legions had bat- tered their way Into Teruel and re- lieved the garrison of insurgents within the city. A later report said operations had halted at nightfall and the in- surgents planned total occupation of the provincial captial. which was wrested from them Dec. 21, tomor- row. One announcement said "the heroic defenders of the embattled Insurgent been incorporated anew ink, na- tionalist .Insurgent) It said the right flank of Francos forces cccupied the southern suburbs cf Teruel while the left Hank loot the cemetery. Lake Gives Up Body CUARKSV1LE, Dec. body of a man identified as Oscar Ward. 52-year-old farmer, was found floating in the water of the Clarksville country club lake near here today, it was partially weighted with a piece of iron and d wound was in the back of the head. Ihe Wealher r Ar I 1101 R 1 3............, 4 5 i 3 8 I 18 f'i lours- I nnfl It! s-nie fl r M The Reporter-News presents this morning on page nine ex- clusive pictures by Norman Alley of the bombing and sink- Ing of the U. S. gunboat Panay by Japanese airplanes. The pic- tures depict graphically various angles of the International In- cident which seriously strained relations between the United States and Japan. The pictures were obtained exclusively by the Associated Press for reproduction in mem- ber newspapers In this country, Alley, who made ninny ol the shots from the deck ol the Panay during Hie bomb.ird- nicnt. suffered Muipnel wounds. They were flown to IhD Unilrd States abojrd Hie China Clipper, part of a ment Insured for This full page of pictures brings to readers clearer cspUon of the attack on :V.o Panay than heretofore publl-'i- ed. Tlie Reporter-News Is to present the pictures because of the speed of the As- sociated Telomat sen-ice, r. ceivcd twice daily by tlrs setvict In the world, CONGRATULATED Walter M. W. Splawn, former president of the University of Texas.-: is shown ;iri -Washington receiving conWJ' Neither President Roosevelt nor Secretary of the Treasury Mprgen- thau made any explanation of the reduction, but it was noted they re- turned the silver price to the iden- tical quotation fixed on 21, Interstate Commerce 'commis- sion. Railroads Lose Rates Battle Fail In Efforts To Enjoin State Rail Commission AUSTIN. Dec. number of Texas railroads failed iodiy in efforts lo enjoin orders of the railroad commission reducing freight rates on livestock feed in 39 ccantics. District Judge Roy C. Archer re- fused the railroads' application for a temporary restraining order, over- ruling their contentions the law authorizing reductions In emergen- cies was Invalid. Assistant Attorney General Har- ry Pollard said the ruling, In ef- fect, held the legislature had the power to reduce freight rates in emergencies and the power was lawfully delegated to the railroad commission. Pollard said the decision also meant drouth conditions were, in effect, emergencies since the com- mission had ordered a 25 per cent reduction from Jan. 1 to Mar. 1 on that basis. Judge Archer set a hearing for a temporary injunction on the fac- tual issues of the case testimony on whether drouth and freezes have curtall-d the feed supply will be heard. Earlier today the railroad com- mission extended the reduction lo nine counties, bringing the total so affected to 39. The railroads' ap- plication attacked nn order issued Dec. 7 applying to 30 counties, many of which are In Southwest Texas. The r.ounllcs were Carson. Dallam. Hansford. Hartley. Moore, Oldham, Potttr, Randall a'nd Sher- Ste RAILROADS, Pj. 3, Col. 7 War Begun On High Building Costs WASHINGTON. Dec. The federal trade commission an- nounced tonight it had ordered a nation-wide building sup- ply association to stop priofixlng and other practices to In- crease costs to consumers. The effort lo hammer down prices comes at a time when tht Roose- velt administration is a campaign to stimulate home con- slrucUon thro'igh lonfr costs, and whin administration men are de- claring that "excessive' prices help- ed csuse ths economic slump. However, the investigation on which the trade commission bairtj its order tonight was conducted be- fore the other two developments crystallized. The order directed the national fedcrata of builders sup- ply associations and Us dealer mem- bers to cease "unlawful" practices which have tended lo suppress com- ptlltlon. t Action Affects Western States Reduction Raises Doubts About World Prices; Pesos-Dollar Ratio Unchanged WASHINGTON, Dec. 31 _ (AP) _ President Roosevelt slashed the price of silver mined in the United States from 77.57 to 64.61 cents per ounce tonight. The reduction affected silver mines and many other kinds of metal mines which produce silver as a. by-product in a dozen western states. These mines employ approximately per- sons. f Western congressmen who had been confident that the price upcbanged since April 24, 1935, would not he modified, had declared a lower price would make operation of many mines unprofitable. The action raised doubts about the world price of silver, which has been virtually dictated by Uie United States treasury for the last three years and has been steady at 45 cents per ounce for the last year. The change, if any, in the treasury's price for foreign silver, will not be known until the govern- ment posts Its daily bid it 11 a.m. (CST) next Monday in New.York. premium above the woriti price was Initiated. Early in 1935, the world'pricc closed the gap and suc- cessive increases were made in the domestic price on April 10 and April 24 of that year. After a spec- tacular surge to 80 cents, the world price fell back to about 45 cenis where ft had been before, but no change was made in the domestic price. The new price will only silver mined after tonight. Silver mined in the last few weeks may still be turned into Ihe treasury at any time at the old price. CAN REVOKE OR MODIFY The president established the Quotation in a proclamation which runs until Dec. 31, 1938, but he re- served the right to revoke or mod- ify it at any time. He acted under one ol the few surviving sections of the original Agricultural Ad- justment Act, whose main farm aids were invalidated by the su- preme court. Tlie policy cl Increasing silver prices was undertaken in 1933 both to hasten recovery and reemploy- ment In the mining states and lo give an Inflationary fillip to com- modity prices. Us inflationary aspects have been a source of constant criticism from conservative economists and the treasury itself has been covertly hostile to It. Apparently, it seized the occasion of the expiration at Sre SILVER, rjr. 5, Col. 7 U.S. War Writer Killed In Spain Victim Believed Son Of Leading New York Family jBy The Associated Press JEAN-DE-LUZ, FRANCS, Jan. Wr cor- respondents, one an American, were killed and Edward J. Nelll of the Associated Press was'wounded yes- terday in Spain when a shell struck their automobile during the battle for American was Jr., about 20, years' old, who to'Spain a representative of the magazines and "News Week." His family, prominent socially in the United Slates and France, lived the last H years in' Paris and now is 'In New York. ;-y The other victim was E.V'FL s. Sheepshanks, a of Reuters (Brtish News The first information of the tragedy was received direct from Insugent headquarters in Irun early today by Geoffrey Thompson, charge D'Affaires in the British embassy in Hen d aye, who resides in St. Jean-De-Luz. Thompson said he was informed that Kail, who has been covering the Spanish campaign sice late last may, suffered leg wounds but- was not seriously hurt. The insurgent commander at Irun. Spain, said he understood Neil was laken to the hospital In Concud, a town just north of WAR WRITERS, PB. J, Col. t Illinois Tourists Cine Is Checked EL PASO, Dec. operatives tonight were checking the latest of countless clues which have developed In the mysterious disappearance in 1935 of four Illi- nois tourists as they motored across New Mexico. The new development hinged on receipt of a telephone call to Gov- ernor Clyde Tingley of New Mexico last night by a man In Barstow, giving the name of "J. P. ar.d asking the governor for infor- mation on rewards In the case. Jobless Insurance Is Operative loday AUSTIN, Dec. tomorrow, a. new phase of social MCI hi [j- for the Texas workers, weekly cash benefits lor the un- employed with a good work record becomes operative. Persons out of work who formerly were employed by firms covered by the unemployment compensation act can file claims for weekly pay- ments, not exceeding weekly for 16 weeks in a year, at 112 offices over the state. Unemployment compensation of- ficials expect more than 3CO.OOO ap- plicants during 1933 from the 000 protected workers. However, they point out the chle'i? purpose of Hie agency is not pay benefits but to Seep men work. Before any compensation Is paid the Texas employment service, a division of the commission will seek new work for the jobless. Greatest Year Of Residence Construction For Abilene Since 1930 Comes To An End Friday brought to a close t'-ie best yo-T In residential construction that Abilene has known since the de- pression. The year's construction permit total was fa- below that of tlic pre- ceding year, but nevertheless re- presents more actual builtliii? acti- vity and Includes more new resi- dences than any year since 1930. Building Inspector Tom Willis said. Building permits totaled 5445.309 for 1937, as compared with ths aggregate cf 193S. April marked up the largest single month's total, while Febru- ary was low with Ukcwisc, the largest single per- mit was Issued in April, tn boost its aggregate. It was that of Farmers and Merchants National bank building, contracted for 530. Other large permits issued In April were for construction of the Fairmon't Methodist church; the home of Rex A. Smith at 790 Riverside Drive, and the home of Dr. Stewart Cooper, 174 Meander street. OTHER LARGE I'tKMlrS Other substantial residential per- mits Issued In 1937 Included George Calhoun. residence at 1533 Parramorc; A. Nehon, home at Seventh and High- land; T. Babb, home on Elmwood Drive: M. F. Bird, home on Elmwood; Malcolm-Meek, SS.tMO residence in Elmwood; K. B. Nowels, residence In Elm- wood; J, F. Smith, SI500 residence at 16S7 Sandefcr; Ed Ortssom, K- SOO home at 1125 Hoills Drive; Hol- lls Manly, residence at Meander, and two residences on College Drive, one erected at it cost of by Guy Scruggs and the other by H, U Rice, costing ;