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; 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.)