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About The news-review. (Roseburg, Or.) 1948-1994 | View Entire Issue (Aug. 6, 1949)
Corny. i ,
U. Of 0. Litrary
CREDIT EASING PROVIDED
Federal Reserve Board's
Order May Prove Boon To
Government In Borrowing
WASHINGTON. Aug. 6. CP) The government, which this week
began borrowing to meet iti expenses, may be the chief gainer
Irom the newest "easy credit" move by the Federal Reserve board.
The board yesterday ordered a cut In reserve requirements the
proportion of deposits that banks may not lend In order to make
an extra $1,800,000,000 available for loan or investment this month.
It was the third time this year I
the board has thus Increased ths ,
supply of loan funds available. Mfli Gt?I1. TdVIOr
besides takine such other busl- wlls IMIIWI
ness-bracing steps as removal of
ennsumer rrMlit restrietinns and
consumer credit restrictions, and
making it easier to buy stocks on
Neither of the previous cuts In
bank reserve requirements, the
latest of them In early May, made
even a dent In the record-making,
$2,750,000,000, 27-weck-long drop
ill uaun ivfaiia iu uuaiiiras, iiiai
drop lasted until this past week.
Securities Draw Dollars
As businessmen shied away
from borrowing money for the
purchase of goods they - might
get stuck with in a price decline,
they sought other ways In Invest
their money. One result was
heavy purchases of government
securities from other investors.
Financial experts here think
the same thing will occur this
time, although business borrow
ing having finally taken its
first mild upturn should con
tinue tc climb until November
while nusinessmen build up inven
tory for the fall and Christmas
The government, on the other
hand, is just getting started at
borrowing to make up the gap
between its income and Us outgo
a gap that Is expected to run
to $3,000,000,000 or more in the
current fiscal year and already
has put the government over
$1,500,000,000 In the red.
The fiscal year ends next June
Bidding Volume Low
In Its first try at borrowing
some "new money" on an issue
of its 91-day bills, the treasury
got by without having to boost
the Interest yield of about 1 per
cent a year. But the volume of
bidding at acceptable prices was
not too pleasing to officials.
They suspected that one reason
was that money was "tight" at
the New York City and Chicago
(Continued on Pntre Two!
In the Day's News
. By FRANK JENKINS
AS a part of the job of re-making
Japan that we handed
over to him. General MacArthur
. . ,. . , , , IIUUU JIICI mums iu casn wie tnecKl
announces that he has broken up(or hlm by MHng ,hem ne WM
the Zaibatsu. The Zalbatsu were i unable to read or write, the agents
the big shots who pretty mucn ran i
Japan before the war,
They operated through tight
family trusts, and we are told that
some eleven families controlled
practically all of Japan's banking,
heavy industry and big business.
THE moral to the story:
That was too much power in
too few hands too long AND IT
LED TO THE DOWNFALL AND
RUIN OF JAPAN.
That always happens, sooner or
(Continued on Page Four)
Bay Rum "Jag" Not
Outside Law In Georgia
SAVANNAH, G.. Aug. .
(A You may get drunk as a
coot on bay rum but It's strict
ly legal in Judge B. B. Heery's
They were about to send a
71-year-old defendant to the
cooler yesterday for drunken
ness. Then the police happened
to say they smelled bay rum
That did it.
Judgt Heery told the jury to
acquit the man at once.
Bay rum, he explained, is not
an Intoxicating liquor in the
Georgia I a w. Therefore, he
said, it Is not possible to get
legally drunk on it.
Bay rum generally is used as
a men's toilet preparation.
RECESSION IMPACT EASED
Buying Tempo Increased
By Businessmen, Spurt In
Home Construction Seen
NEW YORK. Aug. 6. (Forward buying by businessmen and
a spurt in home building lessened the impact of the recession this
There were many indications the declining economy was leveling
off In some fields, at least temporarily.
Earl R. Muir, president of the
Louisville, Ky., Trust company
and a spokesman for the Ameri
can Bankers association, put it
"We are going through a very
fine period of readiustment. We
are getting better productivity
from labor which has reduced
building costs. Retail business
has been lowering its inventories.
He noted some slight pickup
other than seasonal. He said
there can be no real depression
when prospective purchasers
have some S175.000.000.000 in sav-
ings and "wnk deposits.
Economists thought business
firobsbly would hold at mid-year
evels through September; that
Rule In Germany
BERLIN. Aug. 6. CD Ma(.
Gen. Maxwell D. Taylor, wartime
paratroop leader, officially was
named today to command the
American military government
and army forces In Berlin.
He will be given this double
barreled authority, a formal
statement said, "in order to unify
the United States position in
Taylor will succeed both Brig.
Gen. Frank Howley, military gov
ernment commandant, and Col.
James T. Duke, who has com
manded the Berlin military post.
The statement said Taylor
would be the personal represen
tative of High Commissioner
John J. McCloy and Lieut. Gen
eral Clarence R. Huebner, acting
Taylor, who came to Europe
last February after three and a
half years as superintendent of
West Point, has served until now
as Heubner's chief of staff.
As head of American military
government here, Taylor will
take over one oflhe most rigor
ous assignments in the cold war.
His predecessor, Howley, wh'i
plans to return to private busi
ness In Philadelphia, was the tar
get of constant attack by com
Negro Gets Forgery Rap
MIAMI, Fla.. Aug. 6. VP)
A 25-year-old .Negro who says he
cannot read or write is serving a
prison term for forgery.
The Negro, Lewis West, was
sentenced to one year and 11
months in federal prison yester
day by Federal Judge John W.
Holland. He pleaded guilty to
forging endorsements on four
government checks totaling $100.
Secret service aeents said West
simply marked an "x" on the
backs of the checks which he
told them he obtained' from a mail
box at the address where he lived.
He then persuaded neighbor
hood merchants to cash the checks
Defeat Albina Fuel
PORTLAND, Aug. 6.
The field in the state semi-pro
baseball tournament was down to
eight teams today.
McMinnville's Collegians fell
last night before the Silverton
Red Sox, 5-4, In eight innings. It
dropped the Collegians from the
Two clubs remained undefeat
ed. Reedsport edged Albina Fuel
of Portland, 10-8, with a two
run rally in the ninth inning.
Banks trimmed Willamette, 4-2,
behind the three-hit pitching of
Big Jim Hudson. It was the first
defeat for Albina and Willamette.
Chemawa Man Killed In
PORTLAND, Ail". 6. VP)
Ruben Sanders, 35, Chemawa,
was killed today in the head-on
collision of his car and a truck
just south of Milwaukie.
The truck driver, Darmond
Moore, Portland, was not harmed.
OLEO, OIL PRICES UP
PORTLAND, Aug. 6. VP)
Margarine was up 2 cents a
pound here today, following by
a week a similar increase in the
price of butter.
Major brands of cooking and
salad oil were up 4 cents a
at the end of the quarter there
might be a turn upward.
But they felt employment and
production might start down
ward again In the closing months
of the year and continue a de
clining course until mid-1950.
Some of the week's optimism
was based on a rise in business
loans, the first In 28 weeks. The
increase brought the total of
business loans by banks to $12,
891.000,000. It was a small Increase only
$16.000.000 and it was an over
due seasonal reaction brought on
as business borrowed to build up
(Continued on Page Two)
Mostly cloudy with scattered
showers today. Sunday fair,
Sunset today 7:21 p. m.
Sunrise tomorrow 5:0 a. m.
Towers Included in Ruin;
Red Cross Aid Readied
QUITO, Ecuador, Aug. 6. VP)
Rescue parties reported today
that there was heavy loss of life
In a series of sharp earthquakes
that shattered at '.east a dozen
populous mountain cities and
towns yesterday afternoon. In
Washington, D. C, the Ecuador
ian embassy said there were 500
Abato, a provincial capital of
50,000 population 35 miles south
oi vuito, was hardest hit. Scat
tered reports from other areas
cut off by wrecked bridges and
telephone lines indicated the
death toll would rise.
Centuries-old cathedral towers
were shaken down, a military
barracks collapsed or. conscripts
and in one area a train derailed.
An eyewitness broadcasting
Ambato said many of the dead
were children who were study
ing their cathecism in the ca
thedral when the auake knocked
over the stone structure.
The Quito observatory said the
earthquake's destruction w a
centered about 60 miles south of
Quito, high In the Andes moun
President Lasso left for Am
bato to take personal charce ot
rescue work. Troops were mobil
ized to give aid to put down
looting that was reported- going
on in the ruins of stores ana
Thousands In the area were
panic stricken. Many spent ihi
night out doors, fearing a re
currence of the earth tremors.
The governor of Chimborazo
province reported numerous dead
and many Injured in the provin
cial capital, Rtobamba. The citv.
with a population of 60,000 is 109
miles south of Quito.
The nearby town of Guano was
reported almost destroyed with
an undetermined number of dead
A report from Quayaquil said
one coach of a passenger train
was overturned near Luisa.
A government announcement
Issued at Guayaquil said 40 per
sons, mostly soldiers, were killed
when a military barracks for
(Continued on Page Two)
Fire Kills Three;
HELENA, Mont., Aug. 6. VP)
At least three men were burned
to death and about seven are
missing In a forest fire which
roared uncontrolled through tim
ber in a primitive area northeast
of here this morning, a physician
Dr. Thomas L. Hawkins said
10 forest service parachutists
were trapped by flames which
raced over about 3,000 acres since
lightning set the fire yesterday.
Names of the victims were not
Hawkins treated two other
smokejumpers who escaped, seri
ous burns from the canyon
The two were listed at a Hel
ena hospital as Bill Hellman and
Joseph Silvia (home towns una
vailable). Hawkins and others who view
ed the fire last night said they
didn't see how the missing men
could escape the flames.
One hundred twenty men, In
cluding 16 parachuting smoke
jumpers, battled desperately in
the picturesque gates of the
mountains area but were unable
to trap the flames.
The blaze was advancing along
a one-mjle front, building up tre
mendous heat and pressure and
threatening to burst out of the
primitive area and onto private
Fire fighters, who reached the
scene by river boat, were trying
unsuccessfully to trap the flames
in the Missouri canyon and smal
The forest service was flying
in reinforcements from Idaho
and hoped to increase the force
at the fire to about 400.
Auto Dives Into River;
One Drowns, Three Saved
ST. MARIES. Idaho. Aug. 6.
P One man was drowned but
three others, one of them with i
broken arm, splarhed through
the water to safety near here last
night when their car left the
highway and plunged into the
St. Joe river.
Forest service workers recov
ered the body of John Ander
son, a St. Maries logger, in 12
feet of water after making re
peated dives to the wrecked car.
Harold Kopey suffered a brok
en arm and skull fracture. Jchn
Trevola and another unidentified
passenger were released from
the St Maries hospital after be
ing treated for cuts.
ROSES TO NOSES
No Aid To LA.
LOS ANGELES, Aug. 6.
UPi The city of roses has paid
tributo to the city of noses.
Portland, which prides itself
on its sweet-scented Oregon
air, yesterday sent to smog
bound Los Angeles, the home of
unhappy nostrils, by air ex
press -one clothespin, four feet
The gift bore a tag "to fumes
suffering Angelenos," referring
to the extra-acrid odors which
hit the city two days ago. It
was, naturally, a gesture from
one chamber of commerce to
First to use the giant clothes
pin was U. 8. Weather Fore
caster John Aldrich.
-Sno use," he gasped. "Still
Trailer Units In
Closing of the 41 units of Rose
burg's trailer park now is in
progress, reports H. L. Scofield,
executive director of the Hous
ing Authority of Douglas county.
The statute of limilations on
emergency housing expired July
31, Scofield reports, and the Se
attle field office of the Public
Housing administration has or
dered that no more trailers be
rented. As soon as 10 units are
empty they will be declared ex
cess property and offered for
sale. Former tenants will be
given priority rights in buying
The order, says Scofield, also
affects the 40 units of Stop-Gap
housing at Scottsburg at which
place there were 10 vacancies on
July 31. The Scottsburg cabins
are to be offered for sale In the
Purchasers of either Scottsburg
cabins or Roseburg trailers will
be required to remove the dwel
ling units from the property now
Eugene is also losing its public
trailer park of 100 units under
the PHA order, Scofield reports.
Four of the trailers at the Rose
bur camp were empty July 31.
No new applications for occu
pancy are being received.
Murder, Suicide Occur In
Crime Prevention Bureau
HONLULU. Aug. 6. VP) A
f oung taxi dancer fled Into Hono
ulu's crime prevention bureau
pursued by her husband.
ir.e dancer, Mary Bartholo
mew, 19, locked herself In a wash
room. Her husband, Francis Bar
tholomew, 22, climbed to the
transom, shot her to death and
then killed himself as police
That all happened Thursday
night. Police yesterday said they
found this ironic note written by
Bartholomew to his wife:
'Don't worry about me. I won't
harm you. Contact me only when
you are ready for divorce.
Driver Of Death Car
Gripped By Paralysis
PORTLAND. Au. 6 VP)
Jack Grunden, 32, whose car
crashed into an embankment
near Troutdale Wednesday and
killed two passengers, is para
lyzed from the waist down.
mat was the report of hos
pital attendants, who said Grun
den's back was broken In the
1 ' -V-
LIFE SAVERS COMPLETE COURSE Svven boys in the iwimmi
life saving class instructed by Ray Brown and Lyle Eddy. Thay
took the course, will get their certificates when thay return fro
demonstrating a chin tow in the water. They also had to break
other life saving techniques ta earn their certificates. (Picture b
Seizure Of Struck
OREGON SATURDAY, AUG. 6, 1949
In Ecuadorean Earthquake
Public Hearing Set For
Aug. 31 By County Court
On W. Roseburg Project
Boundaries of the proposed
West Roseburg Sanitary district
will be set by the county court
at a public hearing at 10 a. m.,
Aug. 31. The hearing was sched
uled after presentation ot peti
tions bearing about 40 signatures
The hearing will be held for
the purpose of determining boun
daries and setting the date for
an election in the proposed dis
trlct. Any objections to formin"
the district may also be voiced
at that time.
Al Rowe. chairman of the un
official West Roseourg. Sanitary
committee, said tne proposed dis
trict would extend about m
miles west of the city limits, be
tween the South Umpqua river
ana tne oia coos Bay Wagon
It is hoped that residents of
the area will vote their approval
of the district at the special elec
tion to be called, in order that
plans may be formu'ated for the
early construction of sewerage
lines, Rowe said.
N Roseburg Link Desired
He added that the distr ict hope
to cooperate with the North
Roseburg Sanitary district, which
is planning the construction of
a sewage treatment plant, pend
ing a special bond election tenta
tively set for Aug. 23 to raisa
The North Roseburg treatment
plant would be located on either
one of two sites a tract located
near the Masonic cemetery, fo.-
which the district holds an op
tion to purchase, or preterabty
on the Roseburg Veterans hos
The latter site has-been bffered
by local Veterans administration
officials. It is located about 800
yards below the veterans hospital
bridge. If used, the proposed
plant there would be constructed
by the North Roseburg Sanitary
(Continued on Page Two)
Grants Pass Wins
Legion '50 Meet
SALEM, Aug. 6. VP) Sam M.
Bowe, Grants Pass, appeared to
aay as the almost certain choice
of the American Legion as the
next state commander.
Bowe, now vice-commander. Is
the only announced candidate for
the position. The election will be
Legionnaires named Grants
Pam yesterday as the site of next
year's convention, nosing out Sea
side and Eugene.
By a two-thirds majority vote
delegates did away with the area
commander system, adopted in
1947. The three positions werj
abolished as an economy move.
The annual grand parade of
the convention was held here
Inst night with top honors going
to La Grande and Hillsboro en
tries. The La Grande Drum and Bu
gle corps was named the too
musical entry with Astoria and
Ashland the runners-up. The
Hillsboro auxiliary drill team
was Judged the top marching
unit. The Coquille bagpipers and
the Yamhill county majorettes
were the runners-up.
School Aid Wanted Only
For "Auxiliary" Services;
"Fair," Mrs. F. D. R. States
NEW YORK, Aug. 6. (-Francis Cardinal Spellman has Is
sued a new statement on federal
D. Roosevelt, who has disagreed with the church leader's stand,
termed the message "clarifying and fair."
The statements followed a telephone call from the cardinal to
the wife ot the late president. The cardinal said he acted to clear
up "many regrettable misunderstandings" concerning the position
ot the Roman Catholic church on
Reds In Asia
WASHINGTON. Aug. 6. UP)
- -Congress found itself about as
divided as China today on what
to do about stopping the advance
of communism In Asia.
The state department s white,
paper explaining why Chiang'
Kai-shek's government failed to
kee-i 'he communists from gob
bling up most of China was
greeted on Capitol Hill by a vol
ley of criticism from lawmakers
wno cauca it a coniession oi
American failure also.
It was defended, on the other
hand, as a realistic review of a
situation which Just about every-
oony nere agrees is oaa.
Among the members of Con
gress there was a meeting of
minds on one point something
ought to be done to keep all of
China from being overrun by sup
porters of the red banner, who
might then threaten China's
But there was no agreement on
Bridges Offers Program
Senator Bridges (R-NH), long
time critic of the administration's
policies toward Asia, offered a
"1. Pat the Nationalist govern
ment oa the back instead of kick
ing It In the face; 2. Give assur
ance that this country doesn't in
tend to recognize the communist
government of China; 3. Furnish
small arms and ammunition to
the anti-communist forces still
willing to fight."
Senator Magnuson (D-Wash), a
member of the armed services
committee, said a great deal still
can be done to keep western
China out of communist hands.
He suggested that If some of
the personalities could be eliml-
(Continued on Page Two)
Fiery Crash Of Gasoline
Tanker Kills Driver
BAKER. Aug. 6. PV Warren
Roger Allen, 37, Baker, was kill
ed early this morning when a
gasoline tanker he was driving
went off the road 19 miles from
Raker, near Oxman, crashed Into
the railroad tracks and burned
Reasons for the accident nave
not been determined, according to
County Coroner Thad Beatty who
said that Allen's body was burned
almost beyond Identification and
found between the demolished
cab body and the truck trailer
where he had either crawled or
been thrown forty to fifty feet.
Allen leaves three small daugh
ters In Baker.
ng pool demonstrate what thev learned in a Red Cross junior
received their certificates Friday. Five other boys, who also
m Boy Scout camp. In this picture ,lhe junior life savers are
various heed holds, tow rescued swimmers 30 yards, and show
y Paul Jenkins.)
aid to education and Mrs. Franklin
In his statement, issued simul
taneously last night with one by
Mrs. Roosevelt, the New York
prelate said his church seeks
public funds solely for "auxiliary
services oi parocnial schools.
"We are not asking for general
support of religious schools," he
Mrs. Roosevelt, whom the car
dinal had called "anti-Catholic"
for her opposition to federal aid
to secretarian schools, said the
cardinal had telephoned her and
"asked me to go over a state
ment which he would like to re
lease." "I have read II," she added, "and
think it a clarifying and fair
Cardinal Is Speelflo
The cardinal said the Catholic
church does not expect, nor ask
public funds for school construc
tion, maintenance and teaching
But he said parochial school
children should share with public
school children In funds for
transportation, school lunches,
health programs, and non-religious
"We do not think." he added.
"It should be left to each state
to decide for Itself whether or
not to distribute federal funds in
a discriminatory way.
"And above all, we ask that
Conereas guarantee the use ot
federal funds for health and
transportal Ion to the, 2,800,000
of America s children attending
parochial schools, If they guaran
tee federal funds for health and
transportation services to other
American children attending pub
The cardinal spoke of "great
confusion and the many regret
table misunderstandings and mis-
(Continued on Page Two)
Two Bandits Rob
Bank In Canada
VANCOUVER, B. C, Aug. 6.
(CP) Two handkerchief-masked
bandits today escaped with $5,300
from the Dunbar street branch
of the Bank of Nova Scotia. Both
men were armed, but no shots
At sunpolnt. they forced l
cashier to hand over $3,200 In
cash and S2.100 In traveler's
i ne nandits escapea in an auto
mobile bearing Washington State
license places. Police said one
man spoke with a "faint Ameri
The bandit team missed S1.000
cash on the counter of the teller's
caSe- . ..
it was tne nrsi DanK nomup
here since April 8 when bandit
Robert Harrison was killed by
traffic officer Cecil Paul after
robbing the Commercial drive
branch of the Canadian Bank of
The robbery today oceured half
an hour after the early 9 a. m.
opening of the bank.
Be Taken Over
Law Doesn't Spell End .
Of Strike. Harry Bridges
Declares To Unionists
HONOLULU. Aue. fl. (At
Hawaii's legislature today passed
a bill empowering the territorial
government to seize the Islands'
strikebound docks. Earlier, strik.
uig uu sieveaores voted unani
mously to refuse to work for the
Final passage of the legislation
designed to end the 98-day water
front tieup came in the 10th day
of a special session called by Gov.
uiKram m. aiainoacx.
Late last nleht Senate anil
Houje conferees agreed on the
measure which directs the gover
nor to take over the Islands' seven
struck stevedoring firms. It also
c:is for hiring, as far as possible, .
the 2,000 striking members of the
International Longshoremen's and
Warehousemen's union at the p re
strike ,1.40 hourly wnge.
The House approved the confer-'
ence report by a 24-to-6 vote. The
Senate's approval was unanimous
is to u.
The strikers voted not to work
for .the territorial government
after a special meeting was ad-,
dressed by ILWU President Har
ry Bridges. He arrived from San
Francisco yesterday and confi
dently announced the strike Is "in
no danger of being lost" as long
as Matson Navigation company
ships don't sail. Matson Is the ma-.
jor mainland-Hawaii carrier. -
Bridges told a news conference
that no law passed by the Ha
waiian legislature could fore
loading or unloading of Island car
goes on the Pacific coast
But even as he spoke, canned .
pineapple was being loaded for
the first time since the ILWU
struck May 1 for a wage boost of
32 cents an hour. A new norx
union firm, Hawaii Stevedores,
Ltd., was putting the shipment
aboard the Isthmian freighter
Asked If he thought the strike
was near settlement, Bridges re
plied: "More and more Issues are be
ing raised all the time."
One way to settle it, ha added.
(Continued on Page Two)
Democrat O. K. If
Elliott Recalled '
PORTLAND, Aug. 8. VP)
If democratic Sheriff Marlon Le
roy (Mike) Elliott of Multnomah
county Is recalled, a democrat will
be named to succeed him.
The county's two republican
commissioners agreed on that yes
terday. The third commissioner Is
Recall oetitlons continued In
circulation as the sheriff dropped
the charges that touched off the
Those were his charges against
Crtmlnalogist Stanley MacDonald
yesterday. He reinstated Mac
Donald with back pay, and did not
ask for a hearing on tne cnarges
that MacDonald had mlsued coun
ty materials and was Insubordi
nate. A nrenared statement from El
liott said, "Sheriff Elliott feels
that his act of suspension was Jus
tifiable, but since the Board oi
County commissioners approved
of the arrangement of Mr. Mac
Donald taking outside work, that
he has Immediately reinstated
MacDonald was suspended on
Vote For Stat Bonus
SALEM. Aug. 6. VP) The
American Legion In Oregon broke
with its past tradition today and
voted to support a state bonus for
veterans In Oregon.
State bonuses were turned down
by the last two state Legion con
ventions. The 612 delegates adopted a
resolution favoring a state bonus
for world war II veterans by a
voice vote this morning. They
recommended a bonus oi sio for
each month of domestic military
service and $15 for each month ot
overseas service, with a maximum
of $900. That is similar to bonuses
enacted by several states.
Advocates of the proposal argu
ed that stay-at-homes" received a
kind of bonus during tne war
years, the state of Oregon forgave
part of the income tax.
Salem Rent Decontrol
Approved By Gov. McKay
SALEM, Aug. 6. (JPl The
removal of rent control from
Salem drew the approval of Gov
ernor McKay here yesterday.
His recommendation followed
that of the Salem city council.
The matter now goes before the
federal housing expeditor for for
It was the fourth such action
by the governor. Ashland, Med
ford and Eugene previously won
decontrol recommendations. The
federal government has put Ash
land's decontrol into effect.
Levity Fact Rant
By L. T. Retzenstein
Vice conditions In the Los
Angeles area have bocome so
rotten that now even the as