f The Qfqam
House Hears
Plan to Slash
China Forces
. . . , car. charged Mursiaga with un-
A to aUate China armed j awfu UM of an au(omobll,.
f a-ree te a mewn ot tneir pre.- , M
uruaga appeared in Salem ) us
er t -sabers end ettierwise pro- (rt Wednesday and hi
war-leers country vraa UiJ before
eortwtM today.
" Tp-rarJting - officials of the
State, war and esevy department
CM-Janed the program to the house
foreign affairs committee. The
cmamtte is costsMstering a bill to
provide military eaaistanf e to
mike -China'a reduced force more
C&icieisC.
. Mat poinU in the program, be-l-
r werhed out by General George
C. Uarahall, special representative
1 1 Cneas, include;
1. A reduction of the Chinese
army te CO divisions, instead of ,
its prevent strength of from 250 ;
4 1 ST divisions, i i
2. An amalgamation of the Chi
t te nationalist and communist '
armies into one unit, with a ratio
of five nationalists to one com
mutual. , j
1 i 3. Sending of military mission
of 1W0 American to China to
train its personnel.
4. GrT.irg Ousts eaces war
goods fee use bjr its army and
navy. The naval supplies would i
be United to ni small-class vea- '
sela.
S. Transfer at all Japanese in
China te their homeland.
. Maintenance "until stability
returns cf approximately 30,000
L'ruted States marine in China.
Natural Gas
Said in Oregon
' WASHINGTON. June 19 -JPV-New
gas fields may be found in
arpeeximateiy half of the United
States, Including the coastal reg-i.i-C
WashingtM and Oregon, a
bureau -of mines effictal reported
today.
Hugh D. Miser, chief of the bu
reau's fuels division, made the es
timate in reporting the power
cmmawion result of o survey of
potential gas producing areas.
He said proven reserves of nat
ural gas are estimated at 140 tril
lion ruble feet and reserves of oil
re estimated, at M billion barrels.
Geological conditions, he added.
Indicate there are "large undis
covered gas reserves.
Mas. PaU Fts 1 TM.
N0T SHOWING!
AT
V"
RUTH
p -s.
CO-fTBATTJKEt
A CTCLDNX or rCN!
SiyVS
FESnVHL 1TET7S
-I or ens tots rjf.
JIOWI
Gas4e
VmiU
Testsig
-call or '
THE WILO"
CtWlTJT! TOO rrxEiJt
fVVlIWABD HOT
PIPS!
ciiapteii
CIIE C? UET7
TZ2HL SSIIIAL!
"zonno's
euich; unip
hrn rfr;Tf rt
- OTEXS f:U rM. -XOWl
8 ZA -GOING RIOT!
SSksassavBi. BSSSSkasvsi sBksas)
CLHT CUTTCe!
rO-rXATTL'stI!
GLORIA JEAN
"EIVEH GANG"
j f
Salem. Ore. Tnursdore. Tun 20. 1946
Man Charge. With
Unlawful Uc of Auto
City police early Wednesday
arrested Grant Muruago, 724 N.
High at., who wax driving, they
said. car reported stolen from
American Legion hall early Tues
day night. Arrest was made in
the downfc)n area.
case twos
continued.
Nip Journalist
Reveals Japan
Peace Strategy
TOKYO. Thursday. June 20
A) -Japanese Newspaperman Ta
om Maeda testified tonight in the
international war crimes trial
that Japan in 1928 was trying to
carve out a "corridor of safety"
in Manchuria against Russia.
He said that st that time he
had no knowledge of any move
by Japanese militarists to start
the 1931 "Manchurian incident."
Testifying at the war, crimes
trial of former Premier Hides i
Tojo and 27 others, the Japanese
newsmen said the cabinet was
formed to adopt a more aggres
sive policy in connection with
Manchuria, with the government
at that time feeling that Man
churia was the Japanese lifeline.
He said Manfiuria was to
' serve as a buffer, and Japanese
leaders worked toward that end
! despite the fact that "Japanese
, blood had been shed previously
j . . . . for reasons of theSe sacri
fices Japan was,, entitled to con
j trot Manchuria , and realize the
fruits thereof."
Poland Said
Near Upheaval
WASHINGTON. June 19 -iJP)
Diplomatic ' informants said to
day that political conditions in
Poland are approaching a en teal,
perhaps explosive, point. Terror
ism is widespread and the possi
bility of a bloody upheaval is not
discounted.
The state department, as the
latest in a series of moves re
flecting concern over the situa
tion, has asked Ambassador Ar
thur Bliss Lane at Warsaw for
a full report on action of. the
Polish g'yverrunent in closing six
district M icwi of the Polish
peasant party In the last six
weeks.
Alhanv Plant
Changes Hands
SEATTLE. June 19 -cypy-Sale of
the Associated Frozen Food Pack
ers. Inc.. to the Capital Corpora
tion of California for an undis
clu.d aura was reported today by
Patrick A. Conrad, president of
the former.
Associated operates a plant at
Albany, Ore., and three in the Pu
get Sound area, with value esti
mated in excess of $1,000,000. T r
; firm has a payroll of 700.
C-ENGINEO B-Z kCADY
WASHINGTON. June 19 -i.4
Completirin of the first B-3C six
engin!d bomber was announced
today by the army air forces.
The giant plane will undergo ini
tial flights late this summer.
GE.V CI'UJOS DIES
WASHINGTON. June 19 -OP-MaJ.
Gen. Allen W. Gullion, who
was the wartime provost marshal
general of the array, dropped dead
tonight while listening to a broad
cast of the Louis-Conn fight.
CHINA ARMY Bl'DGET HIGH
' NANKING. June 19 -(VP)- The
Chinese central government is
spending more than 80 per cent of
its income on armies. Premier T.
V. Sooru disclosed today.
The term skyscraper originally
applied to a sky sail of triangular
form.
LEOIIAHD'S
SiTPPER CLUB ic
2ND 8ENSATIONAL
TIIRILL WCTEK
UtU Over! For Yon!
Yvelto
Dare
And Her
Sarong;
Slealing
Psrrot
PLUS !
ALL NEW
ACTS!
Festering
Lee CsrUr
-HeSaeUesial
Dancer
Hillvi BJahop
I
ALL NEW BAND
-ABBE- GREEN'S
ORCHESTRA
FEATURING
JEANNE FONTAINE
VOCALIST
CHINESE FOOD
STEAK
And Chicken
Dii
m
( !
t
Order to Fight
Tito Denied
By Miliailovic
BELGRADE. June 19. -(Pi-Gen.
Drsja Mihailox ie today denied the
testimony of orie of his lieuten
ants that he had personally order
ed the first Chetnik attack against
Marshal Titojb partisan troops,
and had oredreu cooperation with
enemy occupation forces.
Mihailovic made the denial in a
face-to-face encounter with the
lieutenant, Milos G lis tic. after the
defense attorney had again ap
pealed for permission for Ameri
can fliers to tesify on behalf of
the Chetnik leader.
The court, however, interrupt
ed the 'attorney' reading of a tel
egram from New York from the
committee for the defense of Mi
hailovic. The attorney, Dragis
Joksifnpvir, also asked that all ev
idence and reports on the trial be
made available for the defense,
but the court did not rule imme
diately: on this motion.
AYC Delegates
Return From
Convention
Art Dow and -Jim Pollard re
turned to Salem Wednesday from
lies Moines, la., where they at
tended the first national conven
tion of the American Veterans
Committee. They represented the
Salem chapter to which they will
give' reports at a meeting next
Wednesday ; night.
Dow. president of the local
chapter; said convention high
lights included AVC endorsement
of the Columbia Valley authority;
election f Charles Bolte as na
tional; president and Gilbert A.
Harrison, AVC founder, first
Vice president ; adoption of first
steps toward n international
veterans' league in conjunction
with British, Greek. Yugoslav
and French veterans who attend-
ed. and permanent adoptioa of
the national legislative office of
AVC in Washington. D. C.
k . ,
Ne. 44-31
Synopfcta of Annual stat.m.ntj
of th. Stat Farm Mutual Automobile
Insurance Company .f Bloominstoci. In
U State . I Illinois, oa th thirty-first
day of ' December, 145. miw to tn
Inxuranr Commissioner of th Stat
of Oregon, pursuant to law.
INCOME .
Net premiums received. S3S S11.0S S
Total Interest, dividends and real es
tate ineome. $1JI.10S13
Income : from other sources
700 7 .
Total income. Ml RS4 M SJ
DISBlIRSEMtNTS
Net amount paid policyholders for
losaes. UXTt.iriSS.
Luu adfustment expenses. 13.903 S44 U
Acents eommissioRs or brokerage.
S3.S46.SS 7 45.
Salariei and fees- Ofrtcer directors,
tutme off ire employes. $1 .904 47 34
Taxes.-, bcenae- and fees. S72S.7SS IS
Dividends paid to stockholders, tvone..
Dividends paid or credited to policy
holders. S3S4.92S M.
All oUjMr espendltttres. tS.332.J47 It.
Total StkbummrnS. SJ3 479, S3 S.
ADMITTED ASSETS
Value real estate dwned (market
value D-preclated. gl.23S.543 SS.
Loans un mort gases and collateral.,
etc . S2.SM.JSS 57
Value of bonds owned (amortised),
Sja (Ms sou as
Value storks .wned (market val
ue I. 13 7SI.449
Cash In bank and on hand. M.-
3IS fMO 7C
Premwms In rw. of wlertn
1 written sitw. September 30. 1S4S. ST7S,
WO
Interexi and rente due and accraed.
tlSSTTSJS
Other assets ( net. Bone
Total admitted assets. SS3J37.1SS S3
UABaiTir tl!RPI.US AND
i OTHER rVNUS
Total taspaid rUtmi. S33 1SS.0O4 M
Katimated lows aditttment CKpetuke
for unpaid claims. tS7.IW3 00
Total unearned premiums on all un
expired risks. SS.334.M4 3S.
Salaries, rents, sxpenaes, bills, ac
counts, fees, etc . due or accrued. SS4S.
131 13
EaUmated amount dust, or accrwed
for taxes. SI 29 SOS 4.
(ommiKrti. brokerace. or other
charges dite and accrued tSSS 3r.44
All () r habilltm. I7.HU.M JS
Tula I liabilities, except capital. 141.
tSIJHSSJ -
Capital bam up Guaranty Fund. S1S0.
000 (M -
Surplus over all liabilities. flO.139.
S4S 39
Surplus" as regards policyholders.
10.37Si3 2a
Total. S42..777 193 3
BUSINESS JN OREGON
FOR THE YKAR
Net precnlurtxs received. $1,301 JSS SS
Net tosses paid. SeSO.SOO 33
Dsvtdenda' staid or credited to pol
icyholders, hone
Name of Compaav. State Farm Mu- j
tual AuloMnObile Insurance Com party
Name of President; R.P. Mecherle.
Name ol Secretary. G. C. Mecherle.
Statutory resident attorney for aery
Ice. Paul w. -Knaupp. Portland, Oregon,
Too Lair to Classify
1S37
t.ivii
HUDSON, convertible.
CaU
SO-UT" 10TBOX. Sood ronditMn, af
ter p sn. lis Liberty Road.
LAST tji
TODAY
TIME'S
rUaw Semrctslight Beam te Tenia 4
at Leslie High Sraee! Unth Field. '
GIGANTIC RAILROAD
j j SHOW
Scowe
Tests 4
Sseees JststsMsTkesv Heeses
G aitere e Acres f Tenes
Reserved Seat Tickets est Sale
Today. 19 r u.m. Ull S p-sa. st
Capital Drag Steee
WtOI ffeiSSS T
Hidden Writing Believed
Found on Degnan Ransom Note
CHICAGO. June !9.-P)-The discovery of "hidden writing"
including' more than a score of names. on the Suzanne Degnan
rpnsom note was reported today by Detective Chief Walter Storms,
Who predicted it would lead them to the kidnap-killer of the six
year old girl.
f The chief investigator of the baffling five months old crime said
the "hidden writing" consisted of
"hundreds of impressions" of
names, telephone numbers and
words made7 on the ransom note
frm writings on sheets above it
in a writing pad.
Copyrighted Story
Storms discussed the new clues
after the Chicago' Daily News an
nounced in a copyrighted story
that one of its staff artists, Frank
San Hamel. had discovered the
tracings on a photograph of the
ntt when he was preparing it for
reproduction in the paper.
Some of the first words reported
discovered in the "hidden writing'
were: "Policeman, bring, tens, rest,
lirady. pay, reward, singles, get 5's,
sfw, rat, beware not to.: meet me,
polR-e or; cash and leave car."
FBI Unimpressed
; The news said the FBI office
in Washington which had examin
ed the original note for finger
prints, was asked after San Harn
ess discovery to reexamine the
note for hiden writing and the
story added:
"And here came the ; first big
disappointment of the inquiry
the FBI reported its experts could
find no hidden writing on the
ransom note.'
-Chicago police were optmistic,
however, about the new clues.
Hoyt Flays
Red Censors
COLUMBUS. O., June 19-;P-Criticizing
censorship in Russia. E.
Palmer Hoyt. editor and publisher
of the Denver Post, asserted today
that the United States "should
urge, as a matter of international
salvation, world freedom of news
and equal use of communication
, "i".'- . . , . , .
t This should be done, he said in
j V sddress to the International
j CirculaUon Managers association,
"s that the average man regard-
less of what country he may hap
pen to be a resident, will know
first hand of the certain doom that
awaits the world if it again in-
dulges in warfare.
Budget Director
Takes New Job
j WASHINGTON. June 19 -Ai
Budget Director Harold D. Smith;
who has supervised the spending
of h fl 1 1 r r i hv tfnvi ii mn t affn.
cies since 1939. today Joined the
Hsntoe 01 oiuciais leaving ,ine c
federal rvice for better - paid j WASHINGTON. June 19 (Pi
Smith resigned to becomi vice ! EreTrS.-t hK""'.
president of the new $7,670,000.- "'ft LSfZ h"-vten
OOtJ International bank u n d e r' 11 ,1 m 1 p"? ,
c , , . mc . j; vote radiood from the Pacific
President Eugene Meyer at a tax 1 whK.h ral ,ier appeared to have
free salary of $22,500 a year, com- broken . HiIk , -tlf1 ,rrl fK-
pared with the $10,000 less taxes
whfch the government paid him.
I CF I 1 1 (Jtlb MeilltMri
I ' c . i
leelll htimiltr hdlOol
CpRVAIXIS, June 19 -CP-Sortie
l.fiOO 4-H club youngsters
began Uieir 31st annual summer
school today, with 200 local club
leaders from throughout Oregon
joining in discussions.
The 10-day school began with
demonstrations and instruction.
Farm youngsters will have les
sons in the mornings: assemblies,
smafl meetings, and entertain
ment in the afternoon.
AMMO LU MP EXPLODES
HANNOVER. Germany. June
19 iIV-More than 100 Germans
and displaced persons were fear
ed dead today in an ammunition
dump explosion, and a raging
underground fire threatened
momentarily to touch off the re
mainder of the stores in a salt
mine at Haenig.ten. 13 miles
northfast of here.
HOW!
Through
Saiaratay
hhKAlLySOH
X-HIT!
Chcniea Coburn
Glnoy
OPENS :4 P. M.
DICK POWEU
WALTEK SLEZAK
I ll.lL tTI'Dl' '
ROY ROGERS TRIGGER;
-BELIjS OF ROSARITA
3pjtjGq
Circus Set for
Final Shows
At ,2:30, 8 p.m.
1
The .Clyde Beatty circus, with
added aerial trapeze acts aug
menting its program of previous
years, plays its final two perfor
mances in Salem today.
The Big Top went up at the
Leslie school field yesterday and
played to near-capacity audiences
at 2:30 and 8 p.m. Programs to
day are at the same times.
The acrobatic Escalientes on the
bars, trapeze artists Jean Evans
and Bebe Siegrist, the high pole
Olveras and the Flying Concellos
vied for top interest with the
Beattys lion and tiger act around
which the show is built. Clowns
brought chortles with a new ver
sion of ' the cannon-ball act and
their impromptu antics in and out
of the circus rings. Other old
standby such as elephant, dog
and trick horse acts round out
the performance.
The circus today is taking ad
vantage, of the two-day stop in
Salem by scheduling a softball
game at 11 am. between the
candy butchers and the trainmen,
with rivalry heightened by sev
eral weeks of argument during a
schedule which kept the show too
constantly; on the move to permit
earlier settlement.
Harbor Probe
Reaches Paper
WASHINGTON. June 19-iP)-The
joint congressional commit
tee named to investigate the
Japanese attack on Pearl Harbor
will begin writing its report to
morrow. Senator Scott Lucas (D-lll,
was selected chairman of. a sub
committee which will fiame the
report. s
Lucas said the fir.,t phase of
the worlt will be to assemble a
chain of undisputed facts as to
what happened at the Pacific
naval stronghold Dec 7. 1941-
how marry Japanese planes came
in, how many men were killed
and wounded.
Draft Opponents
TO Coiltilllie FlJlht
I tide against them.
Rep. Andrews (R-NY) radioed
I yestetday front aboard a ship
' tests in the Pacific that his proxy
would be ;cast for a senate cm-
lpromi.se ot, the teen-age drah.
However Rep. Short (R-Mo)
said he would contest Andrews',
proxy and ask that another re
publican itmteree be named to
replace the absent New Yorker.
STARTS
THE GREATEST
OUTDOOR
ROMANCE
OF THEM All...
Plus Ck-Fsotur
Pcmjerous Business"
The bilarieus side or
homicide . . . to make
yea split year sides with
laughter.
with
Forrest Tucker - Lynn
Merrick - Gerald Mohr
Hi
- , i se . l . - mtr
" --- ps -r i -ej'-y
rf: kf.
djr awayoaassSjstaio I
f AU tae tOMAnCI
fsSary mi W west . . . M
Senator Taft
Says Debt to
Top Estimate
WASHINGTON, June 19 -UP)
Senator Taft (R-Ohio) . told the
senate today that the govern
ment deficit for the next fiscal
year may be double the $4,000,
000.000 estimate made by Presi
dent Truman.
Taft voiced his warning as
congress began a race with time
to complete 11 big appropriation
bills before the new spending
year starts July 1.
Senator Bridges (R-NH) inter
jected that the rusf? was an ex
ample of the "haphazard" way
the federal government is ope
rating.
Taft said the budget bureau
estimate of the deficit was about
four billions "but nobody knows
whether it will be four, six- or
ten billion dollars."
During the day the senate ap
proved many increases recom
mended by its appropriations
committee in annual funds for
the interior department, includ
ing a large number of reclama
tion projects in western states.
Hnsh-Hush of
Conclave Seat
Refusal Denied
PORTLAND. Ore . June 19-(P)
J. T. Marr. executive secretary
of the Oregon State Federation
of Labor, today denied a state
; convention committee had made
a deal with a Salem union man
not to publicize action refusing
htm a seat at the recent conven
tion in Astoria.
Marr explained Ray Thomas,
Salem, who was refused a con
vention seat on his admission of
communistic activity, had made
the charge.
"The charge of a deal between
him and the committee is ob
viously false, for the convention,
which is open to the public and
to newspaper representatives, had
sole power to grant or deny a
convention seat," the federation
officer declared.
; Marr reported the incident
t was the second time a seat had
i been refused to a delegate who
"admitted communistic activity."
!
Secrecv Veil Lowrel
;
Ov4r OI'A Bill Talks
WASHINGTON. June 19 -OP)
Congressmen working out the
final draft of the OPA bill bur
rowed into a storm-shelter of
secrecy today in the gusty con
troversy. They decided unanimously not
to disclose piecemeal the details
they agree upon but to wait until
their work is all done before,
they reveal what price controls
they scrap or save.
FARM MORTGAGES DROP
WASHINGTON. June 19 -vP)
The agriculture department re
ported , today that the nation s
farm mortgage debt dropped this
year to the lowest level since
1915.
The first regulations governing
naval officer mi forms were pass
ed by the United States in 1797.
FRIDAY
f .7 :
i".rt .--Ir tub airier
GORGEOUS
m a.
I mmtm m mm mm 9
Joel McCDEA
Brian DOIILEVY
Sonny TUFTS
SMrnasj I
Cirbara Dritton Fay Balnter
Torn Tully-Henry O'Neill
km md
Last Times Today
n
TURfiEIVUeUaRELO
' fTm "MAN
Geologist to Talk
Of Coat Range
The geology of the' central
Coast range will be the subject
of an address before the Salem
Geological society at 8 (4o'clock
tonight by Dr. E'M. Baldwin at
Collins hall or the Willamette
university campus.
Dr. Baldwin, a member of the
state department of geology and
mineral industries, will limit his
discussion to that portion of the
TWO
Accompanied by
LAURITZ MELCHI0R -JIMMY DURANTE-PETER LAWFORD
COMING SOONI j
Cirysitaill. (Cffliralleira
Salem. Orsxjon '
iwiiq ThuiS Juno 20 i.5oAuta ta
"Children under 11 accompanied by parents admitted free
It's Family Night.
AMERICA'S
MOST
VERSATILE
DANCE
BAND!
EAST
you are planning to go
MTftini o
If
have you thought about going East through California?
On round trip tickets to Chicago, New York and moss
other eastern cities you can go one way through Califor
nia for little or no more railroad fare than you'd pay to
go straight East and back ! ,
This way you can see much of California including San
Francisco, Los Angeles, San Diego. Stopover snywhers.
We now have much finer, faster trains on our Shasta
Route to California, and on our three route from Cali
fornia to the East.
On all of these routes we have faat luxurious Pullman
trains, and speedy comfortable trains with chair cars
and tourist aleeping cars if you are traveling on a
limited budget.:
Tht friondly Southtrn Pacific
City Ticket Offlc: 3 W 6th A Yamhill Sta, Union Station,
telephooe ATwator 8181. or see local gnt. er writ
J. A. Ormaady.OPA 622 PacilU aUaidine;. Portland. Ore.
Coast range Nylng between the
Corva Ilia-Newport highway and
the one connecting Valley and
Otis Junctions. Hit talk, illus
trated with photographs and dia
grams, will review the stratigra
phy of the region with special
reference to the intrusives which
disect it. Dr. Baldwin is at pres
ent engaged in mapping this dis
trict, so he is expected to be ex
ceptionally well informed as j to
its geologic features.
Portugal is the most Important
source of cork.
SISTBfi. HOIl BOSTOH"
n 0.0
v u u
1 ?04tcKincnr7ntf&
THROUGH
CALIFOJaNIA!
East on business or pleasure