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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (June 8, 1946)
3. Hard Coal Miners to Return to Work in Lewis To Control New Fund - 1651 NINETY-SIXTH YEAR 10 PAGES The Oregon Statesman. Salem Oreaon. Saturday. Juno 8. 1946 Price 5c No. 62 mat or" v . SALEM SO SE FESTIVAL FLOAT WINS PKIZE Tagged with a NeJ 13. the Salem Cherriaas float was1 Mi Jiaxed la Friday Portia awl Kmc Festival, parade. Qimh raala Smith of Stay ton and vVH lajBette university, sitting lft an her flower-decked throne holds the white and fold ribbon which declares the Salem entry third place wlaaer among- Oregon cities eatside of Portland. She and Jt attendants, Virginia' Case sad Thyra Jean Carrey, Salem, found the mountain of greens and flowers a which they red a boot as comfortable as sharing- one hotel room (the hotel and not the Cherrlajps 1 ' was fclimed for that), and they enjoyed the breakfast the Cherrlaas served to them there In some ; miracmloas manner as the parade got underway. Handreds of peonies and roses, set off with giant ! stalks of blae delphinium were used In the entry which was guarded by Cherrlaas along the Rose : rte. ,". :'j ,- f " - . - ; . . mmuasawm. GRIP TKDcrocg ' The crack-up of hcJding com pany empires required under the public utilities act - will result in bringing ownership of operating -' utilities In Oregon closer, home. SUndard Gag & Electric, the holding company put together by th ByUesby Interests, has asked - the SEC for permission to sejl its 140.9 14 shares of Mountain States Power Co. common stock at com petitive bidding. Previously It had requested similar permission for sale of Its common stock of California-Oregon Power Co. Moun- . tain States has its main offices in Albany - and operates chiefly in the mid-Willamette valley. Cop co's territory is in southern Ore gon and northern California with offices at Medford. - ' -' While these stocks will be sold in bulk to investment bankers, : undoubtedly. they will Jwork bock -pto local ownership in large mea : eure. Both are well managed com i panies, with clean financial set ups and good earnings records: Their stocks should appeal to local Investors. There Is always the threat of public ownership, but that usually is accomplished by purchase of existing properties, so owners are compensated. When the Pepco reorganization la completed, common stock of Portland General Electric will be distributed to bond and stock . holders f Pepco. Likewise this -stock should accumulate, through trading, in local hands. ' Eventually. American Power at - light will have td dispose of Its holdings of stocks of Pacific Pow er Jc Light. Northwestern Electric. Washington Water, Power and Portland Gas ec Coke Co. No in- timation. is given as to how this will be handled, but it is logical to believe that those securities will come to lodge more and more in local ownership. A cooperative has offered to purchase Pacific Power tt Light preliminary to. splitting It among PUDs, but has had no answer to its proposal. ' Local distribution of ownership would give the utility companies a stronger local base. - Under the strict regulation that now prevails ; financial piracy Is less likely to 1 occur, so the securities should sea son as good . investments. The northwest should be pleased at the prospect of getting both own ership and management In local hands. Passage of Terminal Leave Pay Bill Assured - WASHINGTON. June 7-4V A, gentleman's agreement blocked house action today on legislation to pay billions of dollars : to past and present. enlisted men, for fur lough time they didnt get while In service. i The action left the bill unfin ished business for' next Tuesday, when its passage is virtually as- Animal Cracker : Py WAJSEN GOODRICH 'i r ss6-rWr jr "No eviction notice, eitherr Kit Klux Klan Blamed For Killing, Flogging ATLANTA, June 7-jP)-A Georgia assistant attorney general re ported today his undercover agents had linked an inner "strong arm" group of the revived Ku Klux Klan with a killing and a flog ging. Dan Duke, who is conducting the state legal department's inves tigation of Klan activities by order of Gov. Ellis Arnall. said that Monarchists monstrate in Southern Italy 1 NAPLES, June 7(a-Violent demonstrations by several thou sand royalists killed one soldier land injured afc least 10 persons in Naples today, while in Rome police clubbed .down monarchists shouting "Long live the king!" and "Down with the republic!" The new outbursts in Naples by House of Savoy sympathizers, dis satisfied with the plebiscite re jecting the mon a reWy brk o out after fighting late last night In which one person was killed, eight injured and Catholic priests were maltreated. Priests were conspicuously absent from the I streets today. Heavy police guards, reinforced by troops, cruised Naples streets in light tanks and jeeps armed with machine guns. Early . tonight gunfire continued and some 90 persons, many of them women, had been placed under airreet. A soldier riding in the open turret of tank was killed when police fired a volley into the air in an effort to disperse a crowd near the University of Naples. A hand grenade was tossed during the manifestation, wounding at least 10 persons. This afternoon' leaders of the monarchist party in Naples, called to police headquarters, asserted they had not organized the dem onstrators. In Rome police used clubs to break up -a demonstration by 200 monarchists in downtown streets. Permits Issued For 811,000 Garage A building permit to erect an $11,000 garage at 370 N. Church st. was issued Friday to Russell Bonesteele. The address is that of the Bonesteele auto sales and ser vice establishment. Henry Carl is listed as builder. Permits also went to I. W. Gear to repair a dwelling at 1395 N. Cottage St., $50. and . to Alvin Young to spend $200 for altera tions of a dwelling. DIVIDEND DECLARED ST. PAUL, June 7-(Special) A dividend of 80 cents per share on the common stock of North west Airlines was declared by di rectors, payable July 1 to com mon shareholders of record as of June 20 and representing a total of $271,935. De Don Goode Accuses Business Men, C. of C. Selling Vets Short Salem business men and the chamber of commerce have sold local veterans short, Don Goode. state department of veterans' af fairs contact man. 'told the Salem Retail Credit bureau at a Friday luncheon meeting. Goode accused the chamber of commerce of "dismal failure in establishing a city housing infor mation center to help veterans find, keep or build homes." "No civic group' or organization has made an effort to establish remedies for the veterans' hous ing shortage, comparable to the energies used to bring Camp Adair into this area for its poten tial profits to Salem merchants during the war," Goode said. Home construction in Salem is members of the Kavaher Klub boasted openly Of the two crimes. Publication of the charges In Atlanta newspapers drew from Dr. Samuel: Green, a physician who is Georgia; grand dragon of the Klan, a statement that they were "idiotic;" "Next they'll' be accusing us of starting the'LaSalle hotel fire fn Chicago." he said, "or I wouldn't be surprised If they blame us for the maritime: strike." Took Oath He said every Kkmsman took an oath to uphold the law and to help prosecute any Klansman found violating the law. ; Duke said the crimes his secret agents attributed to the Kavalier club were the slaying of a negro taxi driver and the flogging by a masked band of a 2l4yeax-old negro navy veteran. SUbbed te Death- j The taxi drjver. Porter Flournoy Turner, was stabbed to 'death last August and his body dumped on the lawn of a physician In Dekals county, a part of the Atlanta met ropolitan area. . The navy veteran, Hugh John son, said he was given 50 lashes at gun's point at a desolate spot near Atlanta February 13. He is employed as a bellboy at an At lanta hotel. :: YWC A Drive Past i Mark Workers in the YWCA building fund campaign - pushed the total of pledges "above the one-third mark Friday and set the sights higher for T u e s d a y ' s report luncheon. Qrand total of pledges which had been reported Friday was $62,099, of, which $17,037 had been brought in by the women's divi sion, representing approximately three-fourths of the division goal. The men's division, with $4032 had one-fifth of its goal. Pattern rif tntslH 9 ttt mit nf a SIM) 000 goaL Special gifts amountediithr thefederal government or to $8730. Muntlinger New Police Sergeant Ersel Mjundinger, plain clothes member of the Salem police de partment, J topped the grades of 10 other men in this week's civil service examination to ' fill one place as sergeant on the force.. His grade was closely-followed by that earned by Stanley Frfctee, w ho has been acting sergeant. Walter Ekplin and Ernest Finch tied for third place. : Others examined failed to pass, ; the civil service commission reported. practically halted because of a "so-called scarcity" of building materials, Goode said, "yet I no tice enormous amounts of lumber, cement and nails going into one of the city's biggest Industrial ex pansions Which we are told is more necessary to Salem than homes for Its ex-servicemen." Goode called for a concerted action by Salem civic groups to conscientiously f&lfill their war time promises to servicemen. He declared he : was familiar with the present day shortages and economic difficulties. "But plenty of action is exerted; in getting new industries to come to Salem, so why cant a fire be built under this housing situation and little effort shown," he added. NEW YORK, June 7-(f-John L. Lewis' AFL United Mine Work ers today gained a new contract with anthracite operators providing- for an 184 cents an hour wage increase and a health and welfare fund, the combined con cessions of which will cost the operators an estimated total of $50,000,000 to $60,000,000 a year. The 75,000 miners, wfo have been on strike in the Pennsylva nia hard coal fields for the past week, will return to work Mon day, Thomas J. Kennedy, UMW secretary-treasurer, said; in an nouncing the new contract at a news conference. A spokesman for the operators estimated the increased overhead from the new contract would add approximately $1 a ton to the re tail price of anthracite used chiefly for home heating. The health and welfare fund to be financed by a five-cents a ton royalty on all hard coal min ed would amount to $2,700,000 on the basis of last year's pro duction. The agreement as announced by Kennedy closely parallels the con tract the UMW signed in Wash ington with the government for 400,000 bituminous coal miners recently. The UMW won a concession from hard coal operators in the health and welfare fund which it did not obtain from the govern ment. Under the agreement the fund will be administered by three trustees two of whom will be named by UMW President John L. Lewis and a third by the operators. $34,440,000 Offer Made for Power Firm NEW YORK, June 7-Pr-Thir-teen public utility districts, co operatives and REA projects of eastern Washington and Oregon offered $34,440,000 today for the electric properties of the Pacific Power A Light Co., an affiliate of the American Power & Light Co. The offer was made formally by Charles Baker. Walla Walla. Wash., president of the Interstate Electric, Inc. It culminates several months of organization work In the two states. "If the directors of American Power 6c Light indicate that they will accept Interstate'! offer and supply Interstate with the neces sary information, we will then ob tain a firm commitment for the financing of the purchaie." Ba ker said in a letter to Howard L. Aller, president of American Power. . At Portland, Ore . ( President Paul B. McKee of Pacific Power said In a statement that the of fer was "another of the Bonne ville inspired pieces of political power propaganda." He charged that Interstate "ac tually represents only a small group of self-starting power zealots," and that his concern was working on a refinancing program which would place it "in an even stronger position than before." State Asked to Buy Bridges BAKER, Ore.. June 7-P-The state grange, concluding Its an nual session today, asked that states of Oregon and Washington acquire two Columbia river bridges and make them toll-free. Thev referred to the Bridse of the Gods at Cascade Locks and me oriage at nooo Kiver. Grangers went on record favor- ing permanent legislation whivi would make truck weights and lengths uniform with those per mitted in neighboring states. They also opposed any union attempts to organize farmers or farm labor. Jefferson Council Elects Member JEFFERSON. June 74 (Special) J. J. Denson was elected city councilman to fill the place at this week's council meeting. The matter of serving beer at the same counter where soft drinks are served at the Termi nal was brought up. At the time the beer license was approved to the Terminal proprietors, the management agreed to separate the serving of these drinks at the same counter. It was reported that such change has not been made, and: a motion carried that the recorder notify the proprietors that if the change is not made, the council would ask the state liquor control board to suspend their license. Bills au dited by the finance committee were odered paid. Weather Salem Portland - . San Francisco - ax. 11 H S3 Mln Rain M .21 Trace .00 54 6 59 Chicago S4 New York : S3 Willamette liver J ft FORECAST Ifrom US weather bu reau. MrNary field. Saliini: Cloud v today, occasional light ihwers this af ternoon. HiKheat temperature, 74 de- Srees. O 71 q Greeks To Crush Disorders By L. 8. Chakales ATHENS.11 June 7 -(A)- The royalist government, opening a drive to crush disorder in Greece, today invoked a drastic emerg ency decree setting up summary courts empowered to pass death sentences for using arms against authorities or interfering with po lice. , There will be no recourse from the summary Courtis, aitd death sentences will be rwried out im mediately, the ministry of Justice declared. Suspends Rights The decree, which suspends guarantees ' In the Greek consti tution of either a trial within three months or freedmon, pro vides also for a minimum sentence of five years for strikers in public utilities. The death penalty can be pass ed also for "moral authors" of ac tion against the state. Givea Authority Six articles in the constitution relating to the courts jvere sus pended, and police and the mili tary were given wide authority. The police were authorized to enter premises, homes or business establishments at any hour with out a search warrant. Any person can be held in Jail indefinitely without-bond and without trial. After the court passes, sentence, no pardon, reprieves or proba tions will be permitted. Military courts will try aheged violators in northern Greece while civilian courts will prevail in the south. Delicate Truce Period Starts In Manchuria NANKING. June 7 -P)- China entered upon one of the most delicate periods in her modern history at noon today a lS-day truce in Manchuria during which she must unequivocally determine whether he is to have peace or full-scale civil war. On the Mamhurian plain orders halted a half million opposing government and communist troops where they stood, so that negotia tors here could attempt once again to achieve the peaceful unity that died aborning last Jan uary. Generalissimo Chiang Kai Shek's directive to his advancing national troops to cease fire and concurrence by the communists, prevented the general civil war which had been an hourly threat In the recent disordered weeks. Model Planes Will) Compete Sunday The second annual tree flight Leonte - t for model planes will be I held from 10 a m. to 4 o m. Sun day near Wood burn on the Wood-burn-Gervais road, with the Port land Gas-hoppers as host club and the Salem Cloud-chasers among leading participants for the $400 in prizes, it was announced Fri--day. "" JVUS) Honeymooning Colonel, WAG Captain Admit Taking $1,500,000 Trove from German Castle WASHINGTON. June 7 (JP) The ; arrest of a honeymooning colonel and Wac captain In con nection with the filching of $1. 500.000 of Hessian crown jewels and other treasure from a Ger man castle where their romance started, was disclosed today by the army. Officials said the couple ad mitted having the storied loot. They identified the pair as Col. J. W. Durant, 36, former attorney of Falls Church, Va., and Capt Kathleen B. Nash Durant. 34. for mer hotel executive of Phoertix, Ariz. She had carried on her hotel keeping work in the army by di recting the officers' rest home established in 80-room Kronberg castle, where the trove had been buried by members of the old house of Hesse. It was there Du rant met her. Two others a major still on active; duty and a corporal who has been discharged-; are sought, but their arrest is xpected mo- or ouooira scemi ddhs Mrs. Daniel Illness, Services Today Mrs. Daniel J. Fry; sr., resi dent of Salem for the past 70 years, died Friday morning at her South High street home where she had been bedfast the past two months. Born Jan. 12, 1863, at Bloom ing ton, 111., she came to Salem in 1878 with her parents, Moses and Jane Karbord. Here in 188$ she was married to Daniel J. Fry, long prominent druggist who became president of the First National bank of 43a lem. In 1931 he died. The home they established at 606 S. High st and Its garden on "Frys' hill" are landmarks here. Survivors include two daugh- tres. Mrs. Raymond Walsh and Mrs. Hugh Shattuc, both of Sa lem; two sons, Daniel J. Fry, Salem, and Orris J. Fry, Port land; one sister, Mrs. Ida Knapp of Everett. Wash., and a broth er, Rolla Harbord, Spokane, 10 grandchildren and three great grandchildren. , Funeral services are to beheld at I p.m. today from the C lough -Barrirk chapel. Dr. Seth Hunt ington, pastor of the First Con gregaUonal church, of which Mrs. Fry was a member, offi- Red Radio Hits At U.S., Britain imperialism9 LONDON, June 7-TV-The Mos cow radio accused the United States and Britain today of using "independence" to mask imperial istic policies, and declared Pope Pius XII had tried to Intimidate French and Italian voters "with all kinds of bogies." Commentator Philip Baratov in an English-language broadcast said "one gets a pretty good. Idea of what the west means by inde pendence if one considers the treaty for the so-called indepen dence of trans-Jordan, the Anglo EgypUan talks in Cairo, and the talks between the Anglo - Dutch authorities and representatives of the Indonesian republic. - "The same methods were used by the Americans in developing their system of naval bases in the Pacific and in the Caribbean war was also screened with the flag of independence for the slave peo ples." i Aussies Settle Lend-Leage WASHINGTON, Juno 1-JF-Australia settled her lend-lease account with tho United Staffs tonight by promising to pay $27", -000,000 to the American govern ment. After three months of negotia tion. Secretary of State Byrnes and Australian Minister of Exter nal Affairs Herbert V. Evatt, signed an agreement at the state department. Australia thus became the .fifth nation to wind up Up lend-lease obligations to the United States and the first to whom the Ameri can government did pot have to extend credit to mak the settle ment possible. - mentarilyJ Of the (treasure itself dia monds, pearls, amethysts and roy al heirlofjms officials recovered that part Which they said was the woman's Ihot. They placed this at 25 to 50 per cent of the hoard. The ret ithey said, went to the colonel. Tjhe authorities do not have this portion now, but indi cated thejt know where it can be found. Col. A.C. Miller, of the pro vost marshal general's office, and his assistant, Lt. Col. J. S. Myers, unfolded the story at a newt con ference. They told it thus: The hoard. In a lead-lined cas ket within a wooden box, was hidden in the deepest Cellar of the 100 -room Kronberg castle near Frankfurt-on-Main, which subse quently was taken over for an officers' rest home. When 3rd army troops first moved into the area, thirsty GI's went hunting for liquor in the castle. They found 1800 bottles of choice wines. Then they found leg(n),G:Dai,&DrDS Fry Dies after i l . t Mrs. Daniel J. Fry, sr. ciating? Interment is to bo In Belcrest Memorial park. Ray mond Walsh, Daniel Fry, 111, John Fry and Joe Fry, grand sons, and Dr. William Kuril, husband of Mary lee Fry Snell, a granddaughter, are to be pall bearers. Milk Price Rise v In Effect in Salem Milk was back on an even keel in Salem today. You won't have to carry halfpennies to get the best buy In a quart of the stuff. Retailing for 14 Vs rents since the spring price rise. It went to IS cent Saturday after the OPA had granted the second increase of the season In western Oregon, the first over the nation as a whole. Split Scorned By Wallace WASHINGTON. June 7-A Henry A. Wallace made It em phatically clear today that he is not available to spearhead any third party movement of groups dissatisfied with President Tru man's labor policies. The democratic party will re main "progressive" and a third party could only mean a "reac tionary victory," the secretary if commerce said in an article in "The Democrat," official organ bt the democratic national commit tee. ,. r. He expressed the opinion thst the Republicans will nominate 'fa reactionary" for president In 104B, and lose the election. 2-Year-OItI Treated j For Fall off Bicycle Two-year-old Dickie steward, 2420 Lee st, "fell off sblcycle." supposedly one on which he was carried . by an older person in West Salem on Friday, and Salem city firsf aid men were called to give him : emergency care for fa cial cuts. i Andy Ziegler, 125 Rosemont,. split the end of his thumb with a knife FrUday and after first aid was given he was sent to Salem General hospital for anti-tetanus shots. 1800 bottles of very ancient vin tage more carefully hiddon near the treasure hoard. The circum stances Indicated something else wan hidden. The corporal is alleged to have carried on the search, dug up the jewels and turned them over to the Wac, who was in charge of the rest home. Where the major came in, and Just how the hoard was smuggled to this country, were not disclosed immediately. At any rate the major snd the corporal. Miller said, apparently did not get their share. It was not any tip from those two, but the subsequent marriage of the Wac and the colonel. Mil ler related, that aroused he sus picion of army authorities and set thorn on tho trail. Despite the discharge of the cor poral, authorities said all four probably would be subject to court martial in the European theater under charges of larceny. The penalty upon conviction could be fine or imprisonment. Operator, CIO Meet-Continues My DourUm II. Cornell WASHINGTON. June. 7 (AVDealingft with both AFL and CIO Ve CoaM Seamen', union took favorable turn acroMM the continent tonight but failed to trust threat of. double - header h I p p n sr atriken on all coata later on. In San Francisco, the Pacific American Shipowners UUen offered tonight to start contract negotiations there tomorrow with tho AFL Kailora' Unl-n of tlto Pacific. Association officials said the union immediately cancelled ban on taking ships to sea. . The union Itself set meeting for tomorrow morning to act tn the operators'"offer. In Washington the president and attorney of the operators or ganizatlon, J. M. Hrysn and Gre gory Harrison, were tied up In diacusaiutia with woat coast unU.no of the ClO-domlnated committee) for maritime unity. From the ses sions cam official reports rC progress. Government Conciliator said JLht west roast Isuaea hav been narrowed down considera bly." i ! " No Riga of SetUomoal Even so, no sign of a flaal set lement turned up. &aai cosi Kiurmnin, more: important lit the general picture because the government hopes te use them In setting the pattetti for nation-wide agreements, have been st an Impasse.' " The king-pin CIO National Maritime union discussed strategy for a strike set for June IS. Tonight In s lengthy negtl! ing sesaion, this union dlscua-4 wHH eastern ship operators "the) hours problem and possible wH of meeting It by compensatory time off." , - No F.SBtanaUesi 1 That was the wording of a Iboe department annoum-ement. No planation was given. Presumably under such a scheme, seamen would woik .more than '44-hour week at sea (the union demand 44 hours Instead of the present M hour week), and be given time rff in port later to make up for the overtime hours Negotiations will continue to morrow. V President Truman talked with his cabinet about the maritime crisis and word seepo1 out tlt pros peels weie "pretty bad. The situation was so "delicate" that houe subcommittee abrupt! halted an investigation of It until nest Tueday, Two In jurt'tl as! Riih HilH Aulo ' Mr. and Mrs. Thomas MorHs. 80, were given emergency city first aid care and brought to Sa lem General hospital Friday nirht after their ear had been struck by a Greyhound stage as It turned from the . highway Into Oulnatny auto park, a mil south of n ranks, where they have been living Mrs. Morris complained of chest sn4 back Injuries. He had lacerations. Infants to lie Ianne1 From nriilc Ship WASHINGTON, June T VT) Infants under sis months will t banned from "bride ships" bring ing American servicemen" fami lies from the Eurottean snj Med iterranean theatres. lr. wr de partment announced tonight. This action was taken after study of a report submitted fcy the board of Inquiry which .In vestigated the epidemic smnrg children aboard the army trans port Zebulon Vane. I IIOOVF.R. rr.RON TALK BUENOS, AIRES, June 7-a"S-Herbert Hoover, on a special food minion for President Trunvn, talked for an hour today wjth President Juan D. Peron in n atmosphere described as CMfd.-l and cooperative. ' Our Senators 11-3 v 4