! ' 1-1. ; fir? ' MID0 m odds Weather Ifax. Mia. Kaia L.f -t 49 JM -57 V .41 -57 4 XI 57 H .y at ..31 ""- Jt7 T II I i A I : Sib VrAMtae Encca . ' talrat . I,,. !rrtiad -,, v;,, .: ScatUt , WllUmetU river li tV wm ii II IT " li i"'" 'S.W'KV'A .. ' I ' " N. . . I I , - -W I ' I 1 - I 1 A 1 II J i 'W rr xs-V , Villi I I - I I I v i - y. , U I ; POUNDDD 1651". : ' " : '-'"I' Official announcement that Pres ident Roosevelt, Prime Minister Churchill and Marshal Stalin are meeting in : Black sea .area .con firms' the -rumors of the place of their meeting, some" of which had come from .the Germans. The init ial statement said there was agree ment on the military plan for the completion of the war against the nazis, and that now the "big three' are discussing the political ques tion 'arising from the occupation of Germany and the setting up cf administration in liberated countries. This is where the strain is apt to come. Allies notoriously disagree in the "writing of terms of peace. Hitler knows that, and may be counting "on that fact to provide an "out" for Germany, . The disposition of Germany poses a most difficult problem; but there the only questions are how to harness Germany against fu ture aggression and how a new Germany can be fitted into the pattern of Europe. What the west ern countries are concerned about -is. whether the- Russian might is .going' to fall on-the border coun tries- from Finland across Europe to the Black sea. This question is perhaps mose vexing than that relating - to Germany's fate. , Just now western correspondents are barred front, Romania, Bul garia, Yugo-Slavia ;- and Poland. News from ." there is what passes the Russian censorship. Just be cause she reported that more pic tures of Stalin were displayed (Continued on editorial page) - : " ' " .' -'.-, Brooks Blames Military Heads For Shortages - WASHINGTON, Feb. 8. Senator Brooks (R-IU) declared today that the heads of the armed forces are partly responsible for the nation's manpower troubles. Specifically naming general, of the army George C. Marshall and admiral of the fleet Ernest J. King, he said they had failed to use men to best advantages, erv- ' couraged,vast "overproduction o: surplus goods' and fostered pub lic Jover-confidence. v Brooks ' addressed the senate while - Senator -JTydings (D-Md) was moving fori congressional ac tion against what he called selec tive service efforts to "brush aside" his formers' deferment amendment to the draft law. Meanwhile, ' 50 steps down the hall,' high government officials were telling the senate military - affairs committee that compulsory controls over civilian manpower are needed. Chairman J. A. Krug of the war production board said that without controls, more and more war prod action Will be lost every week. Selective service di rector Lewis B. Hershey supported an amendment to the pending work-of-jail bill which would give war mobilization director James F. Byrnes control ver actual place ment of workers under it. :U. S. Friendlier Toward Italy WASHINGTON, Feb. 8.-(yF)-American support for a gradual change in Italy's status towards full admission into the United Nations was hinted today. Acting Secretary of State Grew said that Italy's co-belligerency - had made it unnecessary to apply fully the stringent armistice terms signed in 1943. 1 He added that "Italy's economy Is being devoted to the prosecu tion of the war in the same sense 'as is "that of the other countries fighting Germany." . ' Clearing Skies today, with slightly cooler tem peratures in the mid-Willamette valley area, predicts U. S Weather bureau, McNary field, Salem. " ' - y , - By Wendell Webb Managing editor. The Statesman , Oregon won't know for 30 days or more exactly how Jt fared in regard to the 1943 purchase of Kentucky liquor, but when all figures are in the liquor commis sion believes the state "will want to buy another set of distilleries.' That testimony came Thursday from T. Ray Conway,' administra tor for the Oregon 'liquor control commission, at the first formal session of the legislative investi gating committee named to' study the deal. " -Background Given Conwsy was drawn through ex haustive questioning by Sen. Paul Patterson, the committee's cliair man, regarding the background for the purchase by -Oregon and Washington of 78,265 J barrels of whisky the total liquid stocks of the Waterfill and Frazier and Chawhan distilleries. . IinfETY FOUBTII YEAH New Push ens Stettin Soviets Threaten To. Trap Scores Of Nazi Troops By W. W. Hareher LONDON. Friday, Feb. 8.-MV The Red army, threatening to trap" scores , of thousands of enemy; troops, yesterday drove a new spearhead within 38 mrles of Ber lin's baltic port of Stettin, whUe the Germans reported that other Soviet shock units had expended six bridgeheads across the Oder river 30 to 43 miles from the im perilled reich capital. Enemy broadcasts said Soviet armored columns striking through Pomerania northeast of Berlin were- within 22 miles of Stettin, and reports reaching London said that Stettin and Berlin now have independent commands a Ger man precaution against the danger of a sudden Russian air-borne at tack or a land break - through fwhich would isolate either city. Nails Shelled Hard The Russians were said, to have ferried a large number of tanks and fresh troops across the Oder hear the axis capital " as Soviet artillerymen laid down a wither ing barrage on German lines,!" rf: In East Prussia , the.. Russians captured the German stronghold of Kreuzburg, 13 miles south of encircled Koenigsberg, killing 4000 Germans, a supplemental Moscow communique reported. The Soviet communique was si lent on the great battle roaring at Berlin's outer gates, but the Mos cow radio declared, "the Oder line has been pierced and Berlin in panic is witnessing the crum bling of the last obstacle in its forefield." German Woes Told German broadcasts said the Oder stronghold ht Kuestrin had been encircled temporarily, told of Red army crossings on both sides of Kuestrin, Frankfurt and Fuersten berg on a 40-mile front, and said there was "house-to-house fight ing" at Pyritz and Arnswalde, 22 and 8' miles southeast of Stettin at the mouth of the Oder. One Finnish broadcast recorded by the BBC said, "Russian tanks have probed to the outskirts of Berlin," and a German-language broadcast from Moscow said So viet units were "now only some dozen kilometers from burning Berlin according to front line re ports." Twelve kilometers is sev en and one-half miles. Mexican Workers Approved for U. S. mm m w ' m MEXICO CITY, Feb. 8-GiPV- .- . , Mexico has agreed to send 50 000 more workers to the United States under a continuing agree ment to furnish manpower dur ing wartime. The present limit of Mexican workers in the United States at one time is 123,000, but because of expiration of contracts and constant shifts this figure ne ver has been reached. He told the committee that the corporation formed by Sam Far ber, Waterfill and Frazier em ploye, Tom Jordan, of the Wash ington liquor control commission, and himself would be dissolved as soon as an acceptance was receiv ed in regard to an audit, by the bureau of . internal revenue, ex pected within 30 days. The cor poration was formed for the pur chase "because it was . the . cor porate stock, not just the liquor, which was for sale." Shortage Cited . Conway said the purchase grew out of a shortage of whisky ' in 1943 when the month of June showed but a week's supply on hand. . .. He pointed to the state law which said the liquor, commission "shall keep on hand , , such quantity and kinds as may be de sired;" said a black market was obtaining "exorbitant prices,", and Op On 16 PAGES Santiairiat Flood 13 Feet, Expected to Rise 5 More in JEFFERSON, Feb. 8. The Santiam river is at flood; stage, 13 feet, and expected to rise S feet in have moved their; stock off the low left their homes in the flats. At 9 standstill hut was expected to resume the steady rise. I Old residents Mong the low lands, while admitting some "women and children" had moved, said jthey were 'probably newcomers jhere;v old j timers, take it pretty much as a matter of course.? I The water is over the highway. put Just over, and only in a few places,; It is I expected it will . be .more generally above the high jway level by morning if the rise jof 5 feet, predicted by the weather bureau, materializes. . , it, FarnW affected are below : the Talbot community and much stock has been moved to higher ground. Mrs. J, McGill of 'the Talbot dis trict came to Jefferson Thursday night put other members of the family ; remained at the place. A few others, similarily situated on especially low ground are known to have left to stay with friends. The Marion county Red Cross early Thursday afternoon noti fied the Jefferson unit to warn resident to seek higher levels for ivestock and members of families in the path of the! rising Santiam. l Additional flood; news on page The Willamette river had reached a height of 13 feet here late Thursday night and a crest of 10 jeet la , expected by late this afternoon, when the middle por tion (near Salem) I is predicted to fall slowly. Flood stage on "the Willamette here is; 20 feet IH The Yamhill and the McKenzie rivers had reached flood stage at Various points but no critical damage was j expected anywhere. AdmiraljHart!; Named Solon HARTFORD, Conn., Feb. 8-(flP) Gov. Raymond E. Baldwin (r) to- pay named Admiral Thomas: C. Hart, 67, member of the navy's general board and commander-in-fchief of the United States Asiatic Beet at the time of Pearl Harbor, to succeed the late U.S. Senator Francis T.' Maloney (d), ! i The governor's taction, forecast In an address to. the electorate Last Monday,? canie kwif tly after le had signed a ill empowering hint to fill the vacancy by ap pointment. ! i I :- , ; j Hart, whose politics are unde termined and who; has steadfastly declined jto comment in advance of legislative taction, Is a resident jf Sharon,! Conn. Jerries Routed With , Inner Tube Slingshot k 1 ' i - ? S , i i ! . WITH THE 29th DIVISION IN GERMANY, Feb. 8 -Ordered to take a Jerry position when they were so close! to the German lines that shooting ; would have brought them under fire, members of com pany A, 175th infantry, stretched an old inner 'tube between two trees and hulled gernades sling shot fashion. It worked. told the committee the liquor commission "would, have gone any price we could have legally", ii any; effort j to acquire stocks to xheet the demand, i -; , ' t The committee also was told that when the state liquor comj mission' first was in contact with Harry E. Collin, a Toledo, 0 se cunues dealer, who held options on uie iwo aistuienes, uie iiiaiici Dogged downjf afte the Oregon l At 2. .1 ' . 1 ' 11 j L At Li. state treasurer was informed . by his attorney that hej would beheld personally j responsible for any State ; warrants or checks Issued in, such a deaL " , T Contract Drawn -: : ' Liter, Conway said, after Col lfn and : the - Washington liquor commission -hid been dealing sep-f arately, a contract was drawn up tinder which Oregon f was offered a chance-to share. As a conse quence,: he said, Oregon bought 2,378 barrels 'for ; 8325,000 and Sclam. Oregoa, Stage of; Next 12 Hours the next 12 hours. Many residents lands and a few families have p. m. Thursday the river was at to orces MANILA, Friday, Feb. .-)- Riding in amphibious vehicles 37th division Yanks of Ma j. Gen. Robert Beightler crossed the Pasig river' Thursday : nead Malacanan palace to root but Japanese who had wrecked the river bridges and have kindled fires in the closely- congested Intramouros district. The point of crossing into the ast sector of Manila in which-the Japanese suicide squads are ex tensively active was nearly two miles east of the docks. This suggested a wide circling movement around the ; Intramuros (walled;! city) and docks toward the 11th. airborne division of Maj Gen. Joseph M., Swing trying to break into Manila from the south by way of suburban Pasay. . Considerable fires were reported burning in the Intramuros which is commercial-residential , section. heavily populated "pifticularly by Filipinos and Chinese. , As the Yanks moved to secure the prized dock;: area of Manila, bombers kept blasting, away at rocky Corregidor island which guards the bay entrance. Dewey Raps . Rare' Meets Of Big Three WASHINGTON, Feb. 8. -)- Declaring that Americans "will accept neither isolationism nor abdication," Gov. Thomas- E. Dewey called tonight ;f or immedi ate participation- by jthis country in world political decisions. Addressing 1200 republican par ty members crowded unto a ban quet room of a ! downtown hotel, the 1944 GOP presidential nominee asserted;! that "rare" .meetings of the big three are not sufficient that the United States must be dealt in on daily conferences that are reshaping the world. In his first out-of-state appear ance since he lost the presidency in November Dewey pledged sup port of the decisions growing out of President Roosevelt's confer ence with Prime Minister Church ill and Prendre Stalin. " v Quisling Police Chief ; For Norway Ambushed STOCKHOLM! Ft b. 8.-0"P-Karl Marthinsen, Norway's state security police chief appointed by Premier Vikdunquisling, was slain from ambush as he drove to his of lice this morning, it was announ ced officially in Oslo tonight Washington 38,887 , barrels for $4,260,000. r . The price, he said, was 54 cents a case over oi'A prices out tne deal was: approved by! the OPA -; which previously;: pared $1,100,000 from thef purchase price before it was ' consummated.;. V I-;: -;f.. ; Conway told the committee it would riot have been possible to acquire the whisky without meet ing Collin's terms to let him have 10,000 barrels at ooa prices (from 42 to 55cents a gallon) ; and con tract with him to do jthe bottling at $L75U case, j Collin -kept the physicalf assets, ' f ' ' Iluge Profit Found - ji j A great deal of the controversy which led to the investigation re sulted from audits indicating that Collin netted between 1 $900,000 and $1,000,000 front the joint pur chase.) li; " -V.l r! : I '"' I: rV:H T; '";" Conway said a supplementary letter-contract with Collin pro-; Yankees Cross rasig UUtlMDf 1 Friday Morning, February 9. 194S Election Scheduled Park Purchase, . Power; Franchise Up for Deeisiph Salem votersnot just taxpay ers, but all registered voters . are eligible to cast, ballots go to the polls in the city's seven wards to day to vote on the purchase, of a park site and the granting of a franchise! to an electric coopera tive. - . The park measure involves the issuing of $173,000 "worth of mu nicipal bonds for the .purchase of 47 acres in Bush pasture for pub lic park and playground uses. The city now owns 53 acres of the eastern level portion of the pas ture, . deeded to it by the. Bush family a number of years ago. The portion -now under consideration is the upland western end of the estate. To grant or not to grant a fran chise to Salem Electric "cooperative s the second question under con sideration. The. cooperative how has 20 poles in Salem, but to ex pand its lines here would have to hold a franchise. Polls open at 8 a m. and close at 8 p.m. (See map on page 2 showing. ward boundaries and ttstwgv polling,. places. , German Grain Stocks Seized .I..:."' ..... f, overnment LONDON, . Feb. 8-()-The nazi government commandeered all German grain stocks for bread to day as the food crisis increased within the reich and. Heinrich Himmler was reported to have taken over the death-stand de fense of Berlin. ' , A drastic decree broadcast by the German ministry of agricul ture ordered peasants to surren der immediately all wheat, barley and rye for bread production, even if their livestock should starve as a result . - A grave food and transporta tion situation has forced the min ister of food and agriculture to issue this degree," said the special announcement on the German radio. ; Japs Shiver and Goldfish Freeze j From Cold Wave By th Associated Press r The Yanks are making it hot for the Japanese in the Philippines hut - - Br-r-r-r-r It's mighty cold In Japan.: -. , Dome! news agency said j last night to a broadcast recorded by the federal communications com mission that Japan is experiencing its coldest winter in 25 years.' .The dispatch said it was so cold that gold fish "froze In a solid block of ice and died. ' 1 vlded that if Collin could not de liver 25,000 cases of " bottled whisky a month, Oregon could obtain up to that amount in bulk by paying 4 Collin $5 a barrel. Asked : why Collin didn't turn over such whisky free of extra charge- if he couldn't bottle it, Conway said "I think he should Bulk whisky-obtained, later in the deal, Conway said, was "ex changed with other companies, for bottled goods. He said both the Waterfill j and ' Frazier and the Shawhan "were bottled under the former's .label, r and commented that it was "good , domestic whis ky" and sold as cheaply as we can," - - Checks Still Held " Conway said all money due had been received from Collin in con nection with the purchase and transfer of assets, but that checks for $5000 and $7000 still were lrToqay ByG On Move Field Marshal ' Montgomery P hurchill Turns U Down Anti-Red Combine Idea WASHINGTON, F. .-&)- Flat rejection by Prime Minister Churchill of any idea of a com bine against Russia helped clear the air for the current big three meeting. f ; The point came up specifically tn a proposal from! the Spanish dictator, Francisco Franco, for a western European alliance against the soviet union. 4 - : Churchill turned him down bluntly, it was learned here, and want far beyond the Immediate issue by making it entirely clear, in the view of authorities here, that British policy calls for coop eration with Russia and the Unit ed States toward a future peace. The prime minister nailed the point down by sending copies of the correspondence to President Roosevelt and Marshal Stalin. The gesture of Franco, one-time friend and virtual ally of Hitler, included an offer of his services as mediator between the allies and their enemies - - in a word, Franco was willing to help nego tiate a peace if Churchill was in terested. Churchill turned that proposal down just as bluntly. Allied Planes Keep Blasting : At Nazi Lines LONDON, Feb. ( 8-(P)-Allied warplanes kept up i; their wide spread attacks on the enemy -to day and tonightwith a series of strikes Into Denmark, Holland, Austria and Germany itself. . i An Associated Priest dispatch from Stockholm said allied bom bers pounded the harbor at Co penhagen, Denmark, j shortly after 10 o'clock tonight in! a blow pre sumably directed at Slight units of the German Baltic fleet which have been reported "there. ; The German radio said other allied bombers wert over Pome rania tonight in' small .formations, probably, indicating jah , RAF at tack on' German targets lying in front of Marshal Gregory K. Zhu- kov's first white Russian army. being held pending a study as to : who should : pay certain 1 small amounts.'"' ; 1 1 - i:' ' j His testimony 'also; placed in the record an estimate that 45 to 55 per cent of the j retail pur chase price of whisky! went into the' single federal ak of $9 j a gallon, for 100 proof. He testified, too,' that the commission had In sured the bulk 1 product for its retail. .sales, price. :i.l'- w- The distribution o Ihe whisky to the two states iie estified, was under the jurisdiction of the aud iting firm of Arthur! Anderson company, and a' finalj audit was made last June, by Ray H. Lesher of Portland. , ! ' I Many Meetings Held ' . i Regarding the 1$ 43 ; contract with Collin,' Conway! said it pro vided that if approval of the Ore gon board of control .wasn't forth coming within 21 days the entire purchase was to be made by Washington, -1 !.!.. -v a; J tJ Prlc8c Assault ! in Hits Behind Huge ll-BCbur Barrag Initial Advance of Two Miles Punched Out: Final Battle for Germany. Blay Now Be at Hand v ? By AUSTIN. BEAU1EAR . : PARIS, Feb. 8 (AP) The Canadian First army, strife . Ing behind a-thunderous 11-hoar barrage with flame-throw ers and tanks, launched a grand-scale offensive yesterday morning apparently designed to turn the weslwall' north flank and break into the Ruhr and Rhineland. In the , first hours the assault along the long-dormant northern end of the western front southeast of Nijmegen, Holland, gained two miles and Canadian and British troops battled inside the west wall's fortifications. - With two US armies already battering three breaches in the westwall on a 70-mile front inside Germany, and two others poised to strike along the I Roer before Germany, the final battle for Germany may ; be at hand. V l Sorely pressed at the ap proaches to Berlin by the Rus sians on the , east, the German armies in the west were desper- LONDON, Feb. i-iJPHki Ger man Transocean newt agency broadcast at 11:1$ p. m. tenifht said that Within the Ust twe hours Eisenhower has extend edhlsjwelimiiiary offensive ther to the soath." 1 Transocean Correspondent Gnenther 'Weber said Uj now reached rom Roermond to the area of Trier. The offensive ia the prelude to Impending- bit-ties.- v . -; - ...i j-v'.- ately forced to try to hold back a tide threatening to spill out on to the Rhineland plain and 'engulf their great Industrial cities. A front dispatch said that Field Marshal Sir Bernard L. Mont gomery sent his British and Ca nadian divisions of the Canadian First army veterans of Holland's battles of rivers and dikes into action on a five-mile front south east of Nijmegen. f Germans Stunned 1 Stunned by the furious canon- nading and battered by the bombs of more ' than 1500 warplanes blasting out a path, the Germans offered feeble resistance at first and gains up to two miles were recorded by the attackers at the outset. - ' . . f The exact location of the as sault was not announced, but the fact that the British and Dominion-troops had fought into Ger many's reich forests indicated that Montgomery was aiming - at the tip of the . westwall, which ter minates at Kleve east of the forest.- ,?,.- - .' j'rU-: .. Would By-Pass Defense - ' The - Rhine, which crosses into Holland four miles north of Kleve, winds southward: past such; Ruhr and Rhine Industrial cities as Em merich, ' Wesel, Dusseldorf j and Cologne, and a drive along-its west bank would by-pass power ful e n em t ' defenses along the Roer. " The US First army assault more than 85 miles to the southeast Conway said the liquor com mission had held many; meetings) to determine its obligations under the law to keep the state sup plied with whisky. He testified that in 1940 and 1941 all but .10 per cent of the alcoholic fever ages sold in the state was wjhisky, and said the commission had managed to buy cane spirits and rum during the months of ser ious shortage, but "wasn't proud of the quality . . , It continued to search and grope for whiskies." ' Black Market Cited "V'JfJf 1. The steps . leading to the pur chase, Conway said, were design ed to partially satisfy" the domes tic demand, lessen the black." mar ket, and result in financial profit to "the state. ' ' ' , j -. Several questions put to Con way were withdrawn for J later witnesses, and it was indicated the next '-one '. would be .- George Ha IHIi No. 279 North U.S. Casualties Total 764,584 !! WASHINGTON, Feb. 8.-OV Americaij casualties in all thea- tres now ; total enough, to mart moro than 50 divisions. ' X Secretary of War Stimson Sai4 today army casualties - killed, wounded, missing and "prisoner - - totalled 676,796 on the basis of individual names compiled hi Washington through January 24. - The navy'i 87,788 casualties puts the combined list at 764,584. However, about 200,000 of the wounded have returned to duty. Stimson also reported that865, 000 German prisoners were tak en on the western front since D- i day. Simultaneously, the war depart ment reported that 359,248 pris oners of war are now held at , camps in this country. Included are 305,867 Germans, 50,510 Ital ians and 2,280 Japanese.- i Overflow Navy Men Headed for Farragut WASHINGTON, Feb. Navy approval of a plan to use Camp' Farragut, Idaho, for over flow personnel from the west coast . was announced today by Senator Thomas (R-Idaho). . Thomas quoted a letter front Rear Admiral Randall Jacobs, na vy, personnel chief saying three) of the eight Farragut camps wilt be used by the "western sea fron tier command for overflow per sonnel and eventually for demo bilization. . likewise was' threatening to de tour around the Roer line which has held up the allies since No vember and break out into the, industrial heart of Germany. " : Pilots patrolling roads and rail- , way leading to the Nijmegen bat tle zone said German troop move ment 'toward the fighting line in creased late In the day, indicat ing the enemy was rushing to bol ster the critical sector. . Prescott Lilley of Baker, who wag chairman of the state liquor com mission when; the purchase was made. Other' members of the com mission are Hugh R. Kirkpatrick ' of Lebanon, present chairman, and Paul Crooks of Portland. v Conway told -the committee "the liquor, commission and employes were anxious to cooperate in the investigation and offered ' all fa- , cilities." . t . u . Auditors At Hearing ' . The hearing Thursday was con fined to committee members,' th press, the witness, secretaries,' and Burton Smith and Delbert Kim- berling, , Portland auditors , pro cured for the investigation. The committee members , are Senator Patterson, - Sen. Angus? Gibson, and Reps. Henry . Semon, Ralph Moore vand Harvey Wells .' No specific dale was set but it was expected another hearing ' would be held early next Week. . . Legislative news page' 9.)