Oregon
Franzen Gets Post;
Kowitz, McKinney
Also in New Setup
J. L. Franzen, city manager of Oregon City for the last 21 years,
will become the first city manager of Salem, with Chris Kowitz as
bis city attorney and with W. W. McKinney as municipal judge.
These "appointments" which cannot take on legal status until
formally ratified when the new city regime is installed after Jan
uary 1 came in rapid-fire order" last night as the council-elect met
at the home of Mayor-elect R. L. Elfstrom to shape up Salem's
government-to-be.
Franzen, 62, long-time resident of Yakima and a civil engineer
ing traduate of Washington State college, told The Statesman via
83333X3
TPS) ODDS
The colonial system is crum-
blmg rapidly. Through India and Kowitz, graduate at Willaro
Burma, through Java and India- ette, former councilman and a
China the white man is no longer i practicing attorney in Salem for
-puka sahib ' to the man of color, ; 23 years, will replace Lawrence
The native peoples themselves Brown, incumbent city attorney
are claiming the fruits of the lan- , who did not reauest reaDDoint-
suase of the Atlantic charter.
It !
may easily be that in Asia rather
than in Europe that document will
get greater recognition.
India is in the toils of release
from British dominion. Burma,
over the violent objections of
Winston Churchill, is next to get
ine oner oi irwuwi. ' : terested in the post in event such
also m line for political readjust- telQn ukm
ment. Egypt has already become j ' .
free of British overlordship. Kowitz ' appointment neces-
The Netherlands has had to i sanly was in the form of a rec
yield to the aspirations of the i ommendation to the new city
Indonese and a new federated re- I manager, who has control of ap
pubhc of what was once the , pointlve offices, but Franzen told
Dutch East Indies is being set up. The Statesman last night he
Even Bali, wht.se halcyon days would be "glad" to follow the
were rudely interrupted by the i council's suggestion in the mat
invasion of the Japanese and then j tc. He and Kowitz are friends
by Amt-ncan soldiers expelling j of 20 years' standing,
the Japs, is learning of its new Ha Two-Year Tenure
political ireeoom.
In Indo-C'hina the once docile
inhabitants are seeking to form
an independent g o v e r n m -n I L
French defeat in Europe in 1940 ,
cost it prestige in the far east
Nationalists are indulging in acts
of violence and the French are
moving troops toward Saigon to
control the situation.
The yeast of liberty is working
among the millions of people in
the orient. Perhaps it works pre
maturely, for the native popula
tions may not be able to do a
creditable job of self-government
for a considerable period of time.
But the imperial powers are being
forced to reconsider and recon
struct their policies. By force of
numbers and by dint of the cost , a'wr New Years. The regulations
to European nations the native ( propose that a quorum be set at
peoples may prevail in spite ofl live (there are seven councilmen
their political immaturity. land a mayor under the new set-
Reasonable as their aspirations j up) and the regular meeting times
are, the result of the overturn
mav eailv be a prolonged period
of disorder and unrest while the
colonials try to reach the status i
of competence in self-government. ,
French Place
Revolt Blame
r. , ,, . A Guenther, manager of the water
PARIS. Dec. 26-)-A I rench departmtnt: William Iwan, acting
foreign office spokesman tonight rnjef of the flre department, and
accused Ho Chi Minh. president of j H . Davis, city engnieer and
the fugitive Viet-Nam republican street commissioner,
government, of deliberately plan- Present at the session with Elf
ning and directing the nationalist strom were Chris Kowitz and all
uprising against colonial author- , the councilmen-elect James H.
Ity in French Indo-China. Nicholson, Claude W. Jorgensen,
The accusation came as dis- j David O'Hara, Howard Maple,
patches from the embattled col- j Albert Gille, R. O. Lewis and
orry reported that Ho. who fled Daniel J. Frye, the latter only re-his-
capital at Hanoi at the outset 1 cently having returned from a
of the fighting last week, had ; two-months' plane trip in South
reestablished his government at ; nd Central America.
Hadong, six miles to the south- i (Additional details page 4.)
west ! " '
Other dispatches said French
colonials, now in command of the
entire European quarter of Ha
noi, were stabbing ahead on vir- i
tually all the scattered fronts
the nationalists fell back.
Bl'DCET PLANNED
OLXMPIA, Wash., Dec. 26 A)
Goveinor Wallgren said late to
day he has completed work on a
budget for the 1947-48 biennium
balanced at $488,500,000, exclud
ing capitol outlays.
Animal Crackers
v By WARREN GOO0R1CH .
l think iff going to tam
my corns arc aching."
City Executive
leiepnone irom iong ueacn.
Calif., last night that he would
accept the post and would attend
1947 s first council meeting set
for 9 a.m. Thursday, January 2.
There were about 30 applicants
for the job.
The council-elect set the city
manager's .salary at $7500 an
nually, with the stipulation - that
he be paid on the basis of two
thirds that amount while he is
handling the Salem post "-on- a
part-time basis, pending Oregon
City's finding a successor. Dead
line for going on a full-time
basis here was set for March 1.
rart-Ume Schedule
I ment. The position will continue
..." ... - " .
to be part-time, drawing slightly
more than $400 monthly for sal
ary and secretarial help, until
and unless the council acts on
Mayor-elect Elfstrom's plan to
make it a full-time job. Kowitz
has indicated he might not be in-
McKinnev. also a graduate of
Willamette and an attorney here
in Uill lk nvcr th. n...
nicipa judgeship on a part-time
basis reIieving city Recorder Al
Mundt of those duties. McKin-
ney's appointment extends for
two years, without being subject
to Franzen's approval, after which
the municipal judge becomes an
elective officer. Salary was set at
$2,500, with secretarial help in
addition. A tentative plan calls
for court sessions at 9 a.m. daily.
Also discussed last night was a
proposed new set of regulations
governing council action but no
vote was taken pending the
groups obtaining official stature
be changed from the first and
third Mortdays to the first and
third Wednesdays.
Incumbents Not Discussed
There was nQ discussion last
night on other appointive offices
under the new city manager form
of government, which now are
held by Al Mundt, city recorder;
Dr. W. L. Stone, health officer;
Frank Minto, chief of police: Bat
ty Cooper, sanitary inspector; Carl
Deals to Enable
"jExploit Middle
WASHINGTON. Dec. 26.-oT-Two
big oil deals, under which
American companies would ex
ploit more thoroughly the vast oil
resources of the strategic middle
east, were announced in "princi
ple today.
Hundreds of millions of dollars
are involved and taken together,
the deals involve one of the big
gest oil transactions of all times.
State department officials wel
comed news of the transactions
insofar as they relieved the drain
on the dwindling oil resources in
the United States and South Am
erica. Two major American compan
ies - - Standard of New Jersey and
Socony Vacuum - - were involved
in both deals according to an
nouncements from London and
New York.
In what was considered the
most far-reaching transaction, it
was disclosed that a "prelimin
ary" agreement had been reached
whereby the Arabian-American
Oil company, which owns exclu
sive rights to the Saudi-Arabian
fields, would sell about 30 per
cent of its holdings to Standard
Oil of New Jersey. Socony Vac
uum Oil company is expected to
buy another 10 per cent.
The Arabian - American com
pany is controlled by Standard Oil
of California and the Texas com
pany. Standard of New Jersey, an
City Manager
'..'"V 'X-r
" --;,Jb v- - : v.
. '' . -:
J. L. FRANZEN
City Attorney
12
CHRIS KOWITZ
New Judge
W. W. McKINNEY
Manager-to-be
In California
For Holidays
LONG BEACH. Calif., Dec. 26
( Special to The Statesman )-J. L.
Franzen, informed by The Ore
gon Statesman tonight that he had
been appointed Salem's first city
manager, said he would be "de
lighted to serve the people of Sa
lem," though it would be "with
regret'' that he leaves a similar
post at Oregon City.
He said he would be In Salem
January 2 to assume his duties on
a part-time basis only, "because
1 certainly don't want to leave
Oregon City in the lurch," and
that he hoped to take over his
new post full time by the middle
of February.
Franzen and his wife are in
Long Beach spending the holi
days with their daughters, Mrs.
Paul Hughes and Mrs. James
Smith.
U. S. Firms to
East Oil Fields
nouncing its share in this deal,
said final consummation is con
tingent upon surveys and discus
sions now in progress.
In the second agreement. Stan
dard of New Jersey and Socony
Vacuum reached an accord in
principle with the Anglo-Iranian
Oil company, Ltd., to purchase
substantial quantites of crude oil
from this British company, which
operates in Iran.
1:: i
y'it y
't . an'
Pit . - f I
Soloois Told Red Revolt Brewing in Nation
By Willi as F. Arfeftgast
WASHINGTON, Dec 26.-UP)-Ernie
Adamson, counsel for the
house committee charged with in
vestigating unamerican activities,
came up today with a report say
ing: 1. There is a "conspiracy brew
ing to promote a communistic rev
olution in the United States
through an economy - wrecking
general strike, or other means.
2. Seventeen important CIO la
bor unions are dominated by red
agents of the soviet union.
S. The library of congress is "a
haven for aliens and foreign
minded Americans.'
4. The state department ought
to protest about activities of
numerous representatives of for
eign nations" attached to the
United Nations and busily fol
Appointed Salem's First City Manager.
NINETY-SIXTH YEAR
4th Plane
Safe Near
Shanghai
SHANGHAI, Friday, Dec. 27
The Shanghai Press reported to
day that the death toll in three
Christmas day air liner crashes
here had reached 67 but a fourth
missing plane with 10 persons
aboard was safe.
A brief announcement said the
fourth plane, object of general
anxiety for more than 24 hours,
had turned back from the fog
shrouded Shanghai airport along
with nine other planes in the
flight of 13 ships which had been
carrying Christmas celebrants
from the interior to Shanghai for
the holidays.
All the nine planes landed safe
ly at interior airports.
Among the victims was an
American pilot, J. M. Greenwood,
Bowie, Tex., an employe of the
China National Aviation corpora
tion, at the controls of one of the
planes. His family was en route
to China.
The crashes occurred when the
planes were trying to land at
Shanghai's fog-bound airport and
circled until they ran out of gaso
line. They were part of a flight
of 13 'carrying Chinese to Shang
hai for Christmas celebrations.
In addition. 19 occupants were
injured, a Chinese woman and
three children were killed when
one plane struck a farmhouse.
The missing 10 were aboard a
plane which -still was unaccounted
for among 13 planes bringing pas
sengers to Shanghai for the holi
day. Aided by radar, one of the
planes landed safely. Eight turned
back and landed elsewhere.
Another American. R. B. Preus,
piloting a second CNAC liner, was
among the 19 seriously injured.
Holiday Deaths
Near Record
By the Associated Press
Christmas holiday violent
deaths, most of them from traffic
accidents, totaled 308 through the
country.
Traffic fatalities accounted for
253 deaths and miscellaneous
causes claimed 55 victims between
6 p.m. (local time) Christmas eve
and midnight Christmas day, a
final compilation showed last
night.
The traffic deaths were far in
excess of the 150 forecast by the
national safety council for the
same period and a council spokes
man said it would be a near rec
ord number, after inclusion of
those dying from injuries suffered
during the period.
Bing Tops in Movie
Boxoffice Tally
HOLLYWOOD, Dec. 26 - CP) -Bing
Crosby topped the list ot
movie theatre box office attrac
tions for the third successive year
in the 15th annual poll of exhibi
tors by the Motion Picture Herald
announced today.
The others in order were In
grid Bergman, Van Johnson, Gary
Cooper, Bob Hope, Humphrey Bo
gart, Greer G a r s o n , Margaret
O'Brien, Betty Grable and Roy
Rogers.
County Tax Payments
Total $1,900,000
Tax payments by mail have in
creased the amount of taxes col
lected by the Marion county tax
collector to $1,900,000, according
to Harold Domogalla, chief dep
uty in charge of collections,
Thursday. This figure includes
three turnovers of $474,140.42
made to the county treasurer dur
ing the last tax term. The amount
collected represents about four
fifths of the 1946-47 tax roll of
$2,472,715.83, Domogalla said.
lowing "with blind obedience the
dictates of Moscow."
5. "Communist-controlled un
ions" are making inroads in the
Panama Canal zone and by tying
up the canal "can paralyze our en
tire shipping and commerce.'
Committee members reserved
comment on Adamson's findings.
The CIO and the -library of con
gress called the references to them
untrue.
Members said the committee
probably would meet early next
week to formally approve, or
modify, the report.
"We haven't had a chance to
read it yet," one member s&id.
"It's all news to me."
Adamson said:
"The time has come for all
labor unions to inquire fully into
the aims of those who pose as
Salenx,
U. S. Border Closed
To Mexican Cattle
EL PASO, Tex., Dec. 2 6-OP)
The U. S. border at all points
was closed to Mexican cattle
late today when an "urgent"
message was received here from
Washington by Dr. John Red
mond, inspector in charge of the
bureau of animal husbandry in
El Paso.
The order read: "Effective
now make no further inspections
on Mexican ruminants or swine
offered for inspection - pending
further instructions. Notify bor
der inspectors, ijrgent."
The border Was quarantined
on June 15 when stock imported
from Brazil was believed to
have been infected with hoof
and mouth disease. The ban was
lifted on October 17.
Heavy Rains
Create Floods
In Los Angeles
LOS ANGELES. Dec. 26-P-The
Los Angeles metropolitan
area began drying out tonight
after the heaviest Christmas rain
storm in five years. The weather
bureau forecast partly cloudy
weather, with some showers, for
tomorrow.
Rainfall which began Tuesday
and continued steadily through
Christmas eve and Christmas day
celebrations and into today to
taled 2.64 inches, giving Los An
geles a season total of 9.88 inches
compared with a normal of 4.26
inches up to this date.
Streets Blocked
Many streets were blocked at
times as water, collecting faster
than it could run off, formed min
iature lakes as deep as automo
bile hoods in some places. Hun
dreds of cars were stalled. Silt
slides partially blocked sections
along Hollywood boulevard, Ben
edict Canyon road, Linda Vista
avenue in Pasadena and the Arro
Seco freeway. All were open to
day, however.
A huge piece of concrete from
a retaining wall slid down a
cliffside and wrecked a garage
on Union avenue.
Man Missing
Roy L. Parcher, 47. was re
ported by his son, Wayne, to
have been swept off a bridge
across a storm channel by a four
foot rush of water while the two
were trying to extricate an auto
mobile. Wayne Parcher assisted
police in searching for the body.
The storm was one of the prin
cipal contributing .factors in the
unprecedented holiday toll of 47
traffic deaths In southern Cali
fornia. WAL Airliner
On Mountain .
SAN DIEGO, Calif., Dec. 26-(4)-Sheriff's
deputies searching
for a Western Air Lines transport
which disappeared Christmas eve
with 12 persons aboard reported
late today that they had sighted
pieces of shiny metal in what ap
peared to be a burned area on
the east slope of Cuyapaipe peak,
which is 65 miles east of here.
The deputies, who made their
way by automobile to a point two
miles east of the 6375-foot peak,
said the metal pieces were sighted
through field glasses.
Shortly after the report came
in thick weather closed in on the
mountains and forced cancellation
of the search until tomorrow.
H. T. Hesse Resigns
State Legislature
Resignation of State Represen
tative H. T. Hesse, republican,
Washington county, was received
at the state department here
Thursday. He has served in the
house since 1939 and at the last
legislative session was honored
with a number of important com
mittee assignments. Hesse lives at
Scholls. The Washington county
court will elect his successor.
friends, but actually have no
other interests than a fervent
and sometimes violent desire to
be instrumental in the establish
ment of a virtual dictatorship in
the United States."
Communists who, he maintain
ed, have infiltrated into the field
of government, labor and educa
tion, "realize that the communist
plan of creating unemployment
in the United States is the only
medium through which they can
possibly gain control of the
United States through a victory
at the ballot box."
Other methods that may be
used in "a foreign inspired con
spiracy," he said, include " a
general strike in the United States
through communist - controlled
labor unions which will ulti
14 PAGES
NUNDID
1651
Oregon. Friday Morning; December 27. 1948
George Allen
Reportedly
Resigns RFC
CHICAGO, Dec. 26. -JP)- The
Chicago Sun said tonight that
George E. Allen, director of the
reconstruction finance corporation
and one of President Truman's
closest advisors, has resigned and
that Mr. Truman has accepted the
resignation with "deepest regret."
WASHINGTON, Dee. 27
(FridayWAVGeorge E. Allen
declined to comment today on
a published report that be has
..resigned as a director of the
Reconstruction Finance cor
poration. Allen, dressed in a bathrobe,
came to the door of his hotel
apartment early today In re
sponse to a reporter's knock.
"I have no comment to
make," Allen said.
"And you can tell your read-,
era I got out of bed; to make
it."
In a copyrighted story by its
Washington correspondent Thom
as F. Reynolds, the Sun said an
nouncement of the resignation
"will come from the White House
in a few days."
The article continues:
"The resignation came only af
ter Allen had obtained a 'release
from Mr. Truman and assurance
that his services would be avail
able in the future for assignments
in which the president is especial
ly interested.
"The resignation, it was under
stood, will become effective on
January 22 the first anniversary
of the date on which Allen's nom
ination (as RFC director) was
sent to the senate by the presi
dent." In Washington, Allen could not
be located immediately for com
ment. Some close friends of the RFC
director, who also is a director
of numerous private corporations,
expressed surprise when told of
the Chicago Sun's story. They said
Allen had not told them of any
plan to resign his government post.
E. H. Ellis Hurt
In Accident
Edwin H. Ellis, 70, of route 1,
box 113, Salem, is reported as
progressing satisfactorily aj. Sa
lem Deaconess hospital after in
curring a fractured collarbone at
about 9:20 last night when his
auto collided with a car operat
ed by Harold W. Hanson, 1912
Hazel ave., at Front and Center
streets.
Laraine Baron, 17, of 1535 Jef
ferson St., a passenger in Han
son's car, was dismissed from
Deaconess hospital after X-rays
showed that back pains were not
caused by broken bones or other
serious injury. Investigating city
police said that both cars were
badly damaged.
Courtesy Driving
Campaign Lauded
For Yule Safety
A record of traffic safety over
the Christmas holiday was reached
this year, Chief of Police Frank A.
Minto said last night, and attrib
uted much of the improvement
"definitely to the Statesman-Warner
Bros. Courtesy Driving cam
paign" conducted here December
10-21.
Only a few minor injuries were
incurred here during the holidays.
Of the holidays' four fatal acci
dents in Oregon, none were in
Salem.
mately result in a revolution," or
"industrial sabotage in the form
of strikes . . . during a .period
of war between the United States
and Soviet Russia."
As for the library of congress,
Adamson said many persons ac
cepted for employment in its re
organized legislative reference
department "have had extensive
association with agencies or so
cieties who have shown inclina
tion to change the economy, if
not the constitution, of the Unit
ed States."
Adamson said that probably
the "most serious penetration" by
communist forces "has been
within the labor movement
where the communists dominate
17 vital unions of the CIO."
IS'
Fd9 ((fflragr;
Butter Price Drops
9-10 Cents Pound
In Eastern Stores
(By the Associated Preas)
Cracks in the high price structure for many cost of living items
suddenly appeared in major cities across the country yesterday.
One of the sharpest breaks came in the New York and Chicago
wholesale butter markets. Prices tumbled in New York from one
to ,10 cents a pound. The drop in Chicago ranged from two to six cents
Much of the mystery surrounding the break in New York, where
charges of "rigging" had been
heard, was removed late yester
day. The Dairymen's League Co
operative association said in
statement that it had been active
in the butter market in order to ,
keep prices up and thereby "pro- ;
tect" present milk prices. j
The decline in wholesale prices '
brought an immediate drop of
nine to 10 cents a pound in some
ot the principal chain stores in I
the east.
Egg Prices Decline ' WASHINGTON. Dec. 26 -tJfp)
Egg prices likewise dropped American foreign policy. a ex
sharp ly in a number of places. ; emphfied by the Truman-Byrnes
led by a wholesale decline of Vandenberg-Connaliy stand, must
more than five cents a dozen in be supported and strengthened to
New York. I avoid another war. Sen. Morse
Simultaneously, a cross-coun- (R-Ore) said today,
try survey by the Associated: just back from" six weeks in
Press showed that many of the Europe, the Oregor.ian declared
big department stores in major that this nation must make clear
ernes naa siasnea some ciouiing
prices by from one-third to more
than 50 per cent.
Some groans were audible
when housewives compared the
new sale prices with those they
had paid only two days ago.
In Chicago it was learned at
retailers' associations there are
now looking for pronounced gen
eral reductions in food prices in
February and have been urging
their members to get rid of their
present stocks.
Cities Report Prices
Current reductions In some
food items were reported in New
York, Chicago, Boston, Philadel
phia, Atlanta, Kansas City, Los
Angeles and San Francisco.
Shortly before the Dairymen's
league reported it had been sup
porting butter prices, the New
York City consumers council,
claiming to represent 86 organiza
tions and 500,000 consumers,
telegraphed Attorney General
Tom Clark demanding "an im
mediate investigation and pros
ecution for the parties responsible
for this flagrant violation of the
anti-trust laws."
N. Y. MUk Price Set
The New York milk price is
set by the department of agricul-
ture's milk marketing adminis-
tration on a formula that takes
into account the price of top
grade butter and skimmed milk
powder for a 30-day period. This
month expired on December 24
and the price for January was set
at $5.46 a hundredweight, un
changed since November.
The statement by the Dairy
men's league, which claims to
represent 26,000 milk producers
in the eastern area, declared that
"purchases of butter" by the
league "were made to prevent a
threatened decline of 22 cents a
hundredweight in the January
price of milk." It estimated this
had prevented a loss of around
$600,000 to dairy farmers in the
New York milkshed.
Egg Price Falls in
Portland Market
PORTLAND, Dec. 26 -OP-The
price df eggs fell 1 to 3 cents a
dozen in several groceries today,
reflecting an equal price drop in
wholesale circles here and a sharp
fall in eastern and midwest mar
kets. The lower rates were expected
to spread to other stores tomor
row. Butter, was quoted 3 to 4
cents 1 ower on the wholesale
market late today, will probably
also be a little cheaper for house
wives. Bus to Change Route
Pending Bridge Repairs
The Capitola bus, on that part
of its route between Union and D
streets, will traverse Cottage street
instead of Church, pending repairs
to the Church street bridge, it was
announced by Oegbn Motor
Stages last night.
Weather
Max.
..
as
56
34
Min. Precip
3t JS
33
49
23 .00
Salem
Portland
San Francisco
Chicago
New York 44
30 trace
Willamette river 2.6 feet.
FORECAST (from U.S. weather bu
reau. McNary field. Salem): Cloudy
today and tonight with occasional rain
showers. Highest temperature 44. Low
est 33.
No. 234
. Morse States
Foreign Policy
Needs Support
tnat are in Europe to sta
for whatever period of Years
future events demonstrate that
it is necessary for us to stay."
He decried a domestic tendency
not to support U. S. military
government and state officials
abroad, saying that this hurts
American prestige at internation
al councils and among foreign
peoples.
Morse cited as his "only dis
appointment" during the tour his
inability to obtain a permit to
visit Russia. "It Is difficult to
understand," he said, "why a
legislative representative of "the
American government is denied
the same treatment accorded
Russians in a similar status to
visit this country." '
Cain Appointed
In Move to Gain
Senate Seniority
OLYMPIA, Dec. 26-,P-Gover-nor
Wallgren today aDDointed Re-
' publican Senator-elect Harry P.
j Cain to the United States senate
j effective tomorrow,
i The governor appointed Cain
, immediately after accepting the
! resignation of Sen. Hugh B. Mit-
chell, defeated democratic incum
bent.
Cains regular term of office, to
which he was elected last month,
normally would begin January 3.
His appointment effective" to
morrow may give him seniority
over new senators taking office
next month.
Traffic Menaces
Medford Buildings
MEDFORD, Dec. 26-P-Build-ing
owners decided today that
Med ford's traffic is becoming
menacing.
A truck careened into a filling
station Christmas day and
knocked over a 400-pound gaso
line pump the fifth recent oc
casion when cars have smashed
into buildings.
Iowa Farmer Stuck
With 730,000 Frogs
DES MOINES, Dec 26-P)-An
Iowa farmer with 730.000 frogs on
hand today filed a $101,041 claim
against the state because of a
law which restricts their distri
bution. The farmer, W. H. Potthast of
Milford, said he has 550,000
three year old frogs and 180,000
two year olds. He said he plan
ned to sell them on the New
Orleans frog market when he
discovered the law prohibits
their shipment out of the state.
President Truman
Back in Washington
WASHINGTON, Dec. IS-(JP)-Presidept
Truman returned to
Washington tonight, his flying
trip home for a Missouri Christ
mas at an end.
Mr. Truman spent an hour with
his 94-year-old mother, Mrs. Mar
tha E. Truman, at Grand view.
Mo., before driving to the Iride
pendence airport.
Pric 5c