Corny. i , i U. Of 0. Litrary Eugene, Oregon Hawaii Legislature 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 credit. 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 season. 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 30. 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 city court. 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 on him. 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 week. 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 this way: "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 gVA Amarirnn WIWSI nillbllVHIl 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 Berlin." 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 commander-inchief. 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 munist propaganda. Illiterate-Claiming 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 said. Reedsport Semi-Pros 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 double-elimination tourney. 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 Truck-Auto Collision 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 quart. 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) Trie Weather Mostly cloudy with scattered showers today. Sunday fair, slightly warmer. Sunset today 7:21 p. m. Sunrise tomorrow 5:0 a. m. Established 1873 Hundreds Killed Dozen Towns Shattered In High Andes Centuries-Old Cathedral 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 dead. 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 tains. 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 homes. Thousands In the area were panic stricken. Many spent ihi night out doors, fearing a re currence of the earth tremors. Destruction Reported 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 and injured. 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) Montana Forest Fire Kills Three; Seven Missing 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 reported. 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 available immediately. Hawkins treated two other smokejumpers who escaped, seri ous burns from the canyon cliff fire. 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 timber. Fire fighters, who reached the scene by river boat, were trying unsuccessfully to trap the flames in the Missouri canyon and smal ler gorges. 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. Votes ROSEBURG, ROSES TO NOSES Clothespin Of 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 long. 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 another. First to use the giant clothes pin was U. 8. Weather Fore caster John Aldrich. -Sno use," he gasped. "Still smell It." Trailer Units In Roseburg Closing 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 equipment. 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 near future. Purchasers of either Scottsburg cabins or Roseburg trailers will be required to remove the dwel ling units from the property now occupied. . 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 rushed in. 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 accident. -.IT I 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 Sanitary Disk Boundaries To Be Established 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 Friday. 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 road. 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 $225,000. 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 pital grounds. 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 later today. 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. 11. CARDINAL CLARIFIES 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 Pose Problem For Congress 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 neighbors. But there was no agreement on a program. Bridges Offers Program Senator Bridges (R-NH), long time critic of the administration's policies toward Asia, offered a three-point program: "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 up. 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.) 184-49 aid to education and Mrs. Franklin the issue. 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 said. 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 statement. Cardinal Is Speelflo The cardinal said the Catholic church does not expect, nor ask public funds for school construc tion, maintenance and teaching services. But he said parochial school children should share with public school children In funds for transportation, school lunches, health programs, and non-religious textbooks. "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 lic schools." 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 were fired. At sunpolnt. they forced l cashier to hand over $3,200 In cash and S2.100 In traveler's cheques. i ne nandits escapea in an auto mobile bearing Washington State license places. Police said one man spoke with a "faint Ameri can accent." 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 Commerce. The robbery today oceured half an hour after the early 9 a. m. opening of the bank. 5T, Docks 7 Stevedoring Concerns will 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 government. 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. Pineapple Loaded 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 Steel Marker. 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 a democrat. Recall oetitlons continued In circulation as the sheriff dropped the charges that touched off the recall move. 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 him." MacDonald was suspended on July 7. Oregon Legionnaires 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 mal approval. 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 mesphore stinks.