OtP tnra She summit ! : It i - m Mai r A Tl NINETY-SIXTH YEAR Salem. Oregon. Thursday Morning. August 1. 1946 Prlc 5c- Na. 107 Bn?(B grajuou SuDDU'jS in BOUNDID itAl i 12 PAGES 1 it LU44 I ("r.fr has passed the bill to grant terminal leave pay to nil ti hrit-d enhMed men In th militar y er ice. Since this is of WiK.rt-rble importance to all uh r,-erori. and their families the deta.l of thi legislation merit publicity Termini! !ea e f, jy is allowed a r(mir,.iiti)n for furloughs that were nt t.ik-n during the pe riod Ix-tween Sept , 1938 and Sep; 1 14, up to a maximum t.f 120 days, and would be cim puted on the bai f the CII's pay during tf;at period, f urlough al low ante was 2' day per month. Veteran have a year to fde claims for pay for furlough not taken. Peynarot n made in bonds drawing 2S P"r rent interest and di in five year The purpose f the bond lue was to avoid mfUlionaiY effect of dumping $1 (O0 MM) uon rjh mxiey into the nrurtlrv spending now Sum un der VJ will be paid In rah. Ibind will be untied in multiples f $25 with rash paid for fraction .f this um Thus if a man's pay r.gures U $218 he gets $200 in bonds and SIS In ca.h. In event of death of the recipi ent pis estate may cash the bonds Immediately. Alto the bond will t Accepted as payment on gov ernment life Insurance. The terminal leave pay is not a substitute for muster-out pay. The Latter was paid to men on dis charge from service in amounts up to a maximum of 1300 and w ml to all enlisted men. non rTxtiu toned officers and officers of the first three grades in army. ravy and marine corps. Those of the rank of major in the army and marines and lieutenant com mander in the navy received no muster-out pay. Terminal leave pay originated the war department dug u at old statute which permitted sh pay to officers, so aft com n.ioriei officers gut this termi r.l leate pay In cash. Congress felt there was a discrimination in giving officers terminal leave pay and not enlisted men. hence this ti2I The upshot Ls that enlisted men. non-coms and those In the f.mt (Continued on editorial page) 12 Firemen to Start Duties at IxHal Stations Twelve new regular city fire men are to begin their duties to day following appointment yes terday to the eligibility list by the Itwal civil service commission. The new firemen and their final civiLservice examination scores a re Edward Francis Coursey. 1410 N Fifth st. 85 3; Robert Phillip Viable. 182 N. Church st.. 85 3; Harvey John Keinke. 250 S Cot tage St. 84 8. Richard T. Smith. 420 Leslie st . 80S. Gerald Waldo Jortnaon. 332 Statesman st.. 80.0; Jack Douglas Johnson. 332 States man at. t!9 3; Walter H. Heine. 40 Arademy st . 89 3 D. Delbert hmv 12"(T Saginaw st , 88 3; Arth ur I) Parkes. 485 S. Winter St.. 88 3 Etra Clinton Hart. 2433 I-au-re! ave. 85 3, Cly BurkholU, 570 N liberty M . 80.3. and John Ivigj. Stettler. jr.. 277 N. High at 71 3 Of the new men all but Smith havtf been working with the de partment, at least as relief fire men They were the only appli cants in tests conducted July 17 to determine eligibility for vacancies which have been filled up to the present w ;th non-civil service ap p'ntee Five firemen ruled out by the civil service eligibility will remain as re'uef firemen during the lum mer Hi ation season. Chief Wil Urri Iin said They are U. A. Martin. Jeste Wade, Walter Lake, Harold Wegmer and Carl Ilaiei hurf t Ilodn Preliminary Hearing Srt for Friday PORTI.AND. July 31 -WVPre-liirnnary hearing will le held Fri day for James W Ilowdrn, 47, rnargrd with first degree murder In a basement dynamite blast that kill led his -wife The accused has denied he meant to kill his estranged wife by rigging a booby trap in a fit aer. rxjt said it waa meant for a "friend af my wife." Animal Crackers Br "X'A&REN GOODPlCH V4f (Ua Sua SyaKt T 1 Vsts, cf ear, know ht'$ build-in-hut hm'$ a vtttraru if S? 5 Youths Confess 40 Thefts Five Salem boys under 16 years old admitted prowling about 40 parked cars in Salem this week, it was announced by the Marion county sheriffs office late last night after apprehension of the Juveniles.' Two deputies had be come suspicious of a group of four boys flashing flashlights in the vicinity of the W. T. Rig don mortuary on North Cottage street. When questioned by the depu ties, the . boys admitted prowling the cars and led the officers to the fifth boy involved, and to their loot whieh Included flashlights, billfolds, gloves, bathing suits, tools and other items. In the loot were two checks re ported stolen in one of the recent car prowls on which Salem city police had reports. Two checks payable to Richard Schwelnfurth, Gervals - one for $38 on the Marion-Linn Farmers union and the other for $33 on the United Growers cannery - - were in a billfold taken from Schweln furth s parked car near the Salem water office, police were informed by Schweuifurth. Entry was gain ed by prying a window, police said. The keys for six used cars, of comparatively recent model, were taken from the cars at Valley Mo tors used car lot, police reported. A tire and wheel were stolen from the car of David E. Dyer, route 3, while it was parked In the 200 block of South High street, and a set of hub caps was taken irom the parked car of Kenneth Smith, route 1. box 243, in the 2000 block of Portland road, police said. Forged Bonds, Arsenal Found In Synagogue TIX AVIV, Palestine, July 31 -(47 -British troops hunting for terrorists discovered an arms cache today beneath the great synagogue of Tel Aviv, the largest in all Palestine. Equipment for forging govern ment bonds and 20,000 forged 10 ($40) bonds also were found in the Jewish religious renter, said a communique issued In Jerusa lem. A chaplain of the Church of England, the Rev. Harry Hyde of a British parachute brigade, ac companied the raiders. lie said he went along Just to see that the soldiers "didn't make a mess of things in the synagogue." The communique said weapons, ammunition Including dum-dum bullets and uniforms were found in the basement of the synagogue "all mixed up with bedding and religious literature. Royal engineers were called to the synagogue, on Allenby road in the heart of Tel Aviv, to hunt for further caches with mine detec tors and automatic drills. The communique said "what appears to be a false wall in the syna gogue is being investigated." Bloc Tries to Halt Tax Jump WASHINGTON. July 31.-V I Extraordinary measures were tak j en by the house rules committee today aimed at breaking a ses sion-end congressional deadlock that threatens to increase social security old age insurance taxes from one per cent to 2.S per cent. Stalemates developed when a group of house republicans de clared an all-out battle on a sen ate provision for larger federal grants for needy aged, blind, and dependent children in low income states. Chairman Dough ton (D-NC) of the ways and means committee said that unless the bill is com promised the security tax will jump January 1 from one per rent on employers' payrolls and 1 per cent on employees' pay checks to 2 5 per cent on each. State Income Taxes to Remain Unchanged This Year, According to ; Annual Tax Report State income taxes will not be reduced this year, it was an nounced Wednesday by the state tax commission in its annual re port for the year beginning July 1. 196. No state property tax will be levied for this year and the state will not remit to counties the $10 per census child for school pur poses, it also was indicated In the computation and apportionment announcement of the commission. Requirements for state pur poses, inside and outside the six per rent limitation, total approxi mately $18,500,000 which will be reduced, according to the tax com mission, by $3,800,000 from mis cellaneous receipts, adjustments and unexpended balances. The elementary school tax amounts to Ijjrfov Aslks ActLaomi To us &en. Fraintco I J ! 1 . V" ' 1 w 4 i ill il ; s ! FAKIS, Jaiy HIbj laxurieos Laxembearg palace, delegates from tl suitiotis hat French lreeldeat Geerges B&daalt addreea the Euro pe an pea'e jeonferenee aew In seseien. Two-llhirds Vote Favored il By U.S Reds By Lynn! lleinserling PARIS, JulyiSlHAVSoviet rbr eign Minister JV. M. Molotv warned the 2 If nation peace con ference today that "preparatlqns fori fresh acts of aggression" w$re uncer way, and. declared the way tirrw allies agajinst fascism must act soon against the Franco re gime in Spajn "this survival bred by Hitler and Mussolini." The Russian statesman address ed the conference soon after It became known; that the United States would Support the Soviet Union in its Effort te establish a two-thirds voting majority as the standard for reaching deci sions In this conference. The United States and the Soviet Union Stood firm for the two-thirds majority in all e sec tion substantive matters, end Secretary of $tate Byrnes Will make a proposal to that effect to the rules committee tomorrow morning. It will, howefer, carry this pro vision: that in the event any substantive proposal fails to se cure a tworthlrds majority in the assembly, ft should be sent back to the big four! council Of foreign ministers, along with the record of the vote and a request that it be given special consideration by the big four. 7-StateKlan Probe Disclosed i : WASHINGTON. July 31-P)-Men are investigating the Ku Klux Klan in seven Istates, the Justice department disclosed today. The inquiry, directed by Attor ney General Clark, a Texan, is being conducted , by the depart ment's civil rights section assisted by the FBI. The seven states are: New York, Michigan, Tennessee, Florida, California, Mississippi and Georgia, f The department promised swift criminal prosecution if violations of federal law ire uncovered. Although the j investigation now is confined to seven states, com plaints are pouring in from all sections of the country about re newed Klan activities, the depart ment said. It added that this does not necessarily I indicate that the hooded order is operating through out the nation since many com plaints from the north and west are directed against alleged Klan activities in the south. $2,236,000 which will be paid by the state, and. In addition, $8,000, 000 ls designated for the support of primary and : secondary educa tion. It will be necessary for the state to raise, during the fiscal year. In excess of $8,300,000 outside the 8 per cent limitation. This sum is made up of $5,000,000 for the building fund voted at the last general election, $1,366,000 for higher education, and the remain der for various' world war vet erans accounts. , The tax commission estimated that income taxes collected during 1947, based on 1946 incomes, will be 30 per cent less than the $22, 800.000 collected during the cur rent year. This deducation was ! T rk f 1 1 1: i iiS a in I iiMiiSSfg. Gov. Sncll Reprieves Navy Groonv Speetjster PORTLAND. Ore., Jujy 31 (P)Gov. Snell tonight granted a reprieve to a Portland navy veteran serving a 10 day Jail sentence for speeding after his bride of a month pleaded for leniency because her husband might lose his Job. The governor said the re- firieve of Thomas Bous would ndefinitely postpone the sen tence. A fine of $100 still stands, however. Dams to Offer New Part-Time Power Rates WASHINGTON, July 31 -iJP-The interior department said to day Bonneville and Coulee dam plants would offer "secondary en ergy" to Industrial users at one mill a kilowatt hour, half the pre sent wholesale rate for regular power. The new, reduced rate was filed with the federal power commis sion. Interior Secretary Krug said, to make "full use of all the har nessed power" of the Columbia river. Krug explained the two plants; have a combined "firm power capacity of 1,067,000 kilowatts, based on the minimum water year of record. In addition, they have available In most years about 75,000 kilowatts of secondary en ergy which varies with flow of the river. Secondary energy will be sold only for industrial processes which can be shut down con veniently for periods up to six months. Purchasers must also be users of "firm power" or main tain standby equipment. Primary Won By Sparkman BIRMINGHAM, Ala., July SI (fl'r-Late returns from the demo cratic primary for the senate seat of the late John H. Bankhead to day gave Rep. John J, Sparkman, the ex-tenant farm boy, a clear majority over four opponents. The few missing boxes were scattered throughout the state, and election officials said indi cations were that official canvass Aug. 8 by the state democratic executive committee would be necessary to determine If a run off will be held Aug. 27 between Sparkman and the second man. State Senator James A. Simpson of Birmingham. based on the following major points. Tax Commissioner Coe McKenna, said: ' 1. Declining employment and payroll in the state; 2. Curtail ment of all types of building con struction caused by a reduction in volume of construction material; 3. Possibility of strikes by em ployes and buyers; 4. Reduced profits resulting from increased wages coupled with federal con trol over commodity prices; 5. Scarcity of consumer goods. McKenna said that while there was a surplus June SO In the in come accounts the state roust yet raise a remainder of $5,000,000 of the $10,000,000 to be transferred out of available revenues to the state support fund for primary and secondary education. .-T.l Two Die As Truck, Train Hit ALBANY, July 31 Two men were killed this morning as the result of an accident in which the truck they were driving was Struck by a north bound South ern Pacific Salem local freight near Harrisburg. Lemual B. Nickolson, 64." was killed instantly, and Bill Trach sel, 35, was seriously injured and taken to Sacred Heart hospital in Eugene where he died an hour later. Both men lived on route 2, Harrisburg. The men were engaged in ser vicing combines with fuel oil and having finished with a combine on the west side of the Southern Pacific track were crossing to the east side when hit by the! north bound freight at 9:30 a.m. ( The truck was carried 627 feet by the train and Nickolson's body was carried for 180 feet, officers who investigated reported. The investigation was conducted by Walter Kropp, deputy coroner, state police and the county sher iff's office. Burl Davis of Brownsville was the on W wltneaa and was in an I automobile behind the truck, of ficers learned. The all-Salem train crew was composed of Ed John son, 1543 N. Capitol St.; Arthur R. Sikorra, 310 Fairview, fireman, and Stuart E. Spencer, 1286 Court st. Leave Bonds Pay Bill Sent To President By William F. Arbor; sat WASHINGTON, July 31 -(V)-Amid bitter denunciation of the bond-payment provision, the house sent to President Truman today the $3,000,000,000 GI furlough pay bill. Passage of the compromise measure, on which the house yield ed to senate insistence that the bulk of payments be made In bonds payable in five year, was by voice vote and followed de mands that the next congress make the bonds cashable at once. The legislation gives present and former enlisted personnel $f the armed forces the same considera tion that officers now receive in the matter of payment for fur lough time not actually received with the difference that officers receive theirs in cash and the GI's will get bonds unless their pay ments are below $50. It provides for payment up to 120 days of accrued furlough time at the rate of two and one-half days for each month of service. Payments are to be made at the rate of base pay and longevity re ceived at the time of discharge, plus a minimum subsistence al lowance of 70 cents a day and an additional $1.25 a day for ser geants and some technicians with dependents. Wool Industry Said in Peril I WASHINGTON. July V,-jr-The domestic wool industry stands in "mortal peril" unless congress J asses stabilizing legislation be ore adjournment. Senator O'Ma honey (D-Wyo) asserted today. He toid the senate that because of conditions aggravated b the war, the use of domestic wool by American mills is declining: rap idly and that this is accompanied by a decrease in the number of domestic sheep. j A compromise wool bill, whicfc would continue a purchase and loan support program for wool prices for two years, will need un animous consent to be brought before the house before Friday, its backers said. Gov. Sncll to Speak At Flax Festival j MT. ANGEL, July 31. -Govt Earl Snell will speak at the flax fes tival 'program Saturday, August 10. The governor accepted the in vitation Tuesday tendered hijn by the committee comprising Fred J. Schwab, Ed Stolle and J. H. Four nier. j The Queen will be picked Wed nesday night, August 7 at the can didates ball. EXPENSES RUNNING HIGH WASHINGTON, July 31 WV Government expenditures during the current fiscal year probably will run $4,000,000,000 to $5,000, 000,000 higher than the $35,864, 000,000 contemplated last Jan uary, Secretary of the Treasury Snyder indicated today. The Weather Max. Salem S Portland S3 San Francisco TS Chicago , SI New York Min. Precip. SI ; .as BS ; .00 SO : .00 sa j .so es i Willamette river -3.1 feet. FORECAST (from U.S. weather bu reau. McNary fld. Salem): Partly cloudy today, becoming clear tonight Highest temperature U degrees, i 'Donation' Pictured As 'Crime' WASHINGTON, July 31-V James P. McGranery, Hssistant to the attorney general, told the sen ate war investigating committee today that the case of a defense contractor's $2,500 payment to Rep. Coffee (D-Wash) would have been laid before a grand jury but for the statute of limi tations. The payment to Coffee which the congressman insists was a campaign contribution and which the contractor. Eivind Anderson of Tucoma. Wash., declared was for "servioes'' was made fiv years ago. McGranery testified that the transaction first came to his at tention last March but then it was too late to proceed on account of a law barring prosecutions after three years. Otherwise, he declared, he would have submitted the evi dence to a grand Jury. He told the committee, however, that so far as the recipient of a campaign gift from a contractor is concern ed, "you can receive one and not be guilty of anything." But he declared there is "no question Anderson was guilty of a violation of the law" and called his affidavit "in effect the con fession of a crime." Coffee took the witness stand a second time at the end of the hearing and conceded that there was "perhaps a question of eth ics" involved. But he contended that neither he nor his secretary was "guilty of any crime." "I've made mistakes in my life, and I'm learning my lessons as I go along, and believe me, gentlemen. I have learned from this experience." City Schools' Teacher Staff Posts Filled Salem public schools' teaching staff for the coming school year is virtually complete today, follow ing last night's school district board approval of appointments recom mended by Superintendent Frank Bennett. Of nine appointments approved, all but three of the teachers al ready have indicated acceptance, and if the other three accept the staff of teachers will lack only a girls physical education instruc tor for completion, the superinten dent said. The six confirmed appointments are,: Loren Mort. transfer from Leslie Junior high to Salem high school in physical education; Clay Egleston, Monmouth teacher be fore the war. to teach and direct intramural athletics at Leslie; An geline Ross of Flint. Mich music and English at Parrlsh junior high; Eloise Herrold. Baggs. Wyo., to teach at McKinley school; Kath ryn Barngrover. to teach art at Parrish. and Florence Bemdt, to assist Mrs. Minnie Duncan in re medial teaching. Resignation of Mrs. Olga Folkerts, McKinley teacher, was accepted. No action was taken by the board to replace Walter Snyder, who resigned last week as curric ulum director of the public schools. In other action last night, the board authorized a call for bids on paving a roadway and parking strip, 100 by 250 feet, at the new high school athletic field; decided to request personal hearing in Washington on appeal from a CPA rejection of plans for a new gym nasium building at senior high, and moved to take possession of the downstairs portion of a district-owned building at 434 N. High st. for housing the veteran's apprenticeship coordination and the night school supervisory staffs. SALEM HOUSING OK EH EI) PORTLAND. Ore., July Z.-(A) Approval of HH veterans' priori ties to build four homes to sell at $9050 was granted today by the Oregon FHA office to Browning & Thompson, Salem. Emergency Board Cuts Bid for Deficiency Appropriations Deficiency appropriations o f $65,750, less than a third of the amounts requested, held the a$V proval of the state emergency board today. The sum finally granted includ ed $10,000 out of $15,808 asked by the state educational depart ment, to place the so-called na tional school lunch program in operation in this state under re cent congressional action. The reduced amount of $10,000 at first was voted down, but on a later move for reconsideration that figure was approved to car ry through the plan until around February 1 when the legislature could provide whatever addition al amount was desired. Rex Putnam, state superintend Charged - ' f : .. V -:ry. r J WASHINGTON, July 31. -Gen. Brehen Semervell. fersner head f the army "service forces, whs waa accused ef "squandering" wartiaxe expenditures by Sen. Magnttsen la a speech te the senate tonight. 0PA Hearings Set, Bread May Advaiice Cent WASHINGTON. July 3I.--A recommendation for a cent-a-loaf bread increase ami higher flour prices will be submitted to OPA Administrator Paul Porter tomor row, a government official said tonight. (This would make per manent the present increase in bread prices oxer previous OPA ceilings. This official, who may not be identified by name, said the rec ommendation Is based on a tenta tive decision against restoration of the flour subsidy at this time. Meanwhile, the new price de control board announced that it expects to begin public hearing by Aug. 12 on the question of whe ther price ceilings should be rees tablished Aug. 21 on meats, dairy products, grains, cotton seed and soy beans. Roy L. Thompson, chairman of the three-man board, announced these decisions in a statement aft er conferences with OPA Admin istrator Paul Porter and Secretary of Agriculture Clinton P. Ander son. OPA today ground out the first of many increases required under the new price control law --an average six per cent boost in re tail ceilings on farm machinery and replacement parts. Gromyko Tells A-Paet Stand NEW YORK. July 31-(A) An drei A. Gromyko, Soviet delegate, declared today that the question of inspections, in control of atomic energy, had been "greatly exag gerated in importance.'" He said the only real method of control is "by the cooperation of the United Nations." The Soviet delegate speaking to members of the committee No. 2 of the United Nations atomic energy committee, dealt with phases of Russia's proposed plan for hame5sing atomic energy for peaceful puVposes. The committee asked the scien tific and technicaj committee, an other branch of the commission, to hand in a report on the question whether effective control is possi ble and to indicate methods by which this control could be achieved. Senate Passes 6-Cent Airmail An amended house resolution providing for a six-cent airmail postage rate in the United. States has been adopted by the U. S. senate, the local chamber of com merce was notified yesterday by Sen. Guy Cordon. The measure now is in conference committee pending final action, Cordon's telegram stated. ent of public instruction, told the board in session here Wednesday that the appropriation was to be used only for administration pur poses. Other speakers said approval of the emergency appropriation would bring more than $400,000 of federal funds into the state in the next school year. Under federal law the school districts adopting the, lunch pro- Ram must match federal funds, itnam said 391 (out of around 1700) Oregon schools participat ed in the lunch program during the last school year and it was estimated 475 schools would par ticipate in the school year start ing In September. (Additional details on page 2) Dfi r? mm Senator washinc;tov .TuTV Senator Magnuson (DWash) urg ed on the senate Hodr tonight that the war investigating com mittee inquire into General- Bre hon Somervell i. art ;m :--.-n-- n der oi the army service j force. Magnuon said that he "squander ed practically $300,000,000 of American money with j supreme arrogance." I J J The request came shortly after Senator Mitchell (D-Wath), sum ming up the romm:tteeV inqu;ry into the Gprsson munition com bine, demanded puniUve .measures) against other army o2;fr who, he said, "are easy In moral and careless in administration,'! Mjgnuson said that his request was based upon his experience in dealing with Somerveili in con nection with the Alaskan ! high way and Canol oil projects. He said ,4 hat so much secrecy was thtown around the Utter that members of congress could hard ly ask questions about it" I Senator Ferguson t (R-Michl said the committee already has decided to investigate fMr. Wy man" and expressed belief that "some of that" will come out in the inquiry. f j j His reference was to Col. Theo- dore Wyman, jr., was duUict en gineer in Hawaii prior ' to the j Pearl Harbor attack. The Pe-rl j Harbor investigating comm. t tee j recommended that a separate m ! vestigation into Wyman'a acuvi- ties be made by an "appropriate ; committee" of congress- This tii Jc : has been placed on the aeerL r,f wi senate committee. i Fourth Well to End 'Drought' In West Salem WEST SALEU, July 3S Re!ie from the acute water- shortage in West Salem hills is anticipated within the next 24 hours with th cutting in of the fourth welL TVs was the statement of city offi cials tonight as continued warm weather left all but residents ct the flat without water duxir.s; the middle of the day. j I- The three wells now in use are furnishing a total of 1 .000 gil Ions a minute, Lester D-yis, ciry marshal, said tonight. The purrp and motor for the fourth jwell :s here and as soon as installed wiil provide an additional 3 00 gallons a minute. Davison said, j l As water was drawn off for sprinkling to j alternate jdys ani finally cut it off entirely for a brief time. Sprinkling is 'now per mitted for an hour in the! morn ing and an hour at night Davi son said. j Little or no water has teen available for several day for res idents in the heights after 10.39 or 11 a m., Davison said. Durina! the water shortage only one small fire, a chimney blaze, was report ed and it was controlled before the Salem fire department ar rived, t I While this Is the first! time, the town has had a m-ater : shortage, this year has brought great ex pansion in local industry and po pulation, accounting for Increased water consumption. ! Air Amacla tojFly v Over Salem Toclav : -f ; ! " More than 50 army places. In cluding B29 bombers, are sched uled to fly over the Salem area in formation this afternoon in cele bration of Army ; Air Forces day. The 15th Air Force announced the flight up the Pacific coast frcm March Field to Sacramento, then on to Seattle via Medford and Portland. Presumably the planes will fly over Salem. Sherwood Resident j Drowns in Elk Lake; BEND, Ore., July 3WP-WaI-ter Suhrer, Sherwood, drowned at Elk like east of here late today when a sailboat capsized, tosfing its four occupants into the; lake. Rescued were Mrs. Suhrer, Charles E. Cleveland, retired prin cipal of Benson Tech high of Port land, and Mrs. Ann Draper, also Portland. The two Suhrerei chil dren witnesses the accident. Demands Inquiry Our Senators Losf Sb' ; 5-4 f- ' i 1 1