Judge Brand Called
By War Department
To Aid Nazi Trials
James T. Brand. Justice of the stale supreme court, has been in
vited by the war department to sit as a judge at Nuernberg, Ger
many in the trial of Germans accused as war criminals. He has ac
cepted subject to approval by the
JUSTICE
9" . 1
V Hrn , Sw
J. T. BRAND
ment, and announcement was made Wednesday that it had been
made and approved by the war department and by General Clay as
C. M. A. military governor for Germany.
Reports By Jsasarr 2
Judge Brand is directed to report in Washington by January 20
DTP
SGGDXJB
mums
Now I am supplied by David
W. Eyre, Ttce president of the
United States National bank with
figures as to resources of the
Ladd and Bush-Salem branch of
the V. S. National. As of Dec 31.
1948 total deposits were $52,317,
420 and loans were $6,455,777.
This gives Salem a total of
64. 404, 175 in deposits and $10.
570,570 in loans in its two com
mercial banks.
In the future this statistical in
formation is expected to be made
available at regular call dates,
so that the several communities
over the state will be able to
follow developments in their local
financial situation.
How "times have changed" in
the way of bank resources. Grub
bing through our files I find that
as of Dec. 31, 1832 deposits in
the three banks then operating
In Salem totaled $9,273,908 while
loans stood at $4,511,030. That
was about the bottom of the de
pression. At that deposits in Salem banks
did not fall off so badly as else
where due In part to the fact
that with closure of banks in out
lying communities the banking
business was diverted to Salem.
The call for Oct. 4. 1929 show
ed total deposits in the four banks
then operating here ot $11,639,
125 The call for Oct. 10. 1924 show
ed bank deposits In the city
amounted to $9,204,595. while on
Nov. 17 the total stood at $7,C07,
000 These figures show a remark
able stability for Salem, coupled
with a steady growth, interrupt
ed temporarily by the depression
of the 1930's: and then a tremen
dous expansion in the years of
the second world war and jfter.
This expansion is not alto
gether due to inflation, because
there was heavy inflation in 1919
and inflation in securities in 1929.
The volume of business has grown
greatly in this valley in the last
diiartrr centurv
Business Machine
Firm to Open Office
International Business Ma
chines corporation will begin an
Oregon sales and service branch
for its office machines in Salem
at 158 S. Commercial st. Appli
cation has ben filed with the
civilian production administra
tion for $3400 remodeling of the
Commercial street building which
is owned by W. H
Grabenhorst
St Co.
Leonard C. Thompson vrill
head the personnel of the office,
to employ about 12 persons, the
Portland office raid.
Animal Crackers
By WARREN GOODRICH
"W hud him dry - cleaned
and they just ruined hit
horns."
legislature of an amendment per
mitting nun to take a leave 01 sd-
sence for one year.
Gov. Earl Snell Wednesday an
nounced he would appoint Walter
C. Winslow, Salem attorney, to
the interim vacancy on the court
to serve during Judge Brand's an
ticipated absence.
The war department has been
inviting jurists from state and fed
eral courts to sit on trials of nazis.
At present Chief Justice Walter
Beal of the Washington supreme
court is serving as judge.
When the invitation was re
ceived by Judge Brand he confer
red with bis colleagues on the
court and with Gov. Snell and was
urged to accept It was regarded
as a distinct recognition of Judge
Brand as judge and of the state of
Oregon as well. At this urging and
with assurance that amendatory
legislation to permit an- interim
appointment would be prepared
for early introduction in the leg
islature. Judge Brand indicated his
readiness to accept the appoint
; and men to go on 10 uermany ior
the next session of the court
which convenes on February 1.
He will draw no salary from the
state while absent but will have
the rating of a general in the
army and draw salary from the
federal government. Mrs. Brand
expects to join him after he ar
rives in Germany and obtains
living quarters. His term will be-
for a minimum of six months.
Walter C. Winslow. the gover-"
nor's appointee for the interim on
the high court is prominent as a
lawyer in Salem where he has
practiced since 1908. He was gra
duated from the University of
Oregon and Willamette university
law school. He served as presi
dent of the Marion county bar in
1933-34. Associated with him in
the practice are Roy Harland and
Norman K. Winslow, his son.
Appreval Deemed Certain
The legislature in 1941 passed
a law granting leave of absence
to public officials into duty with
the military and providing for
temporary appointments. To make
it clear that the statute covers
the absence of a judge when
called to service by the war de
partment. Governor Snell has had
the attorney general s office pre
pare a suitable amendment for
legislative approval. No opposi
tion to the legislation is anticipa
ted. It will provide that the
judge pro tern serves during the
absence of the regular member
and draw the regular salary of
the office.
(Additional details page 14)
1946 Traffic
Toll Highest in
History of State
Accidents on Oregon highways
killed 478 persons during 1948,
according to Secretary of State
Robert S. Farrell. Jr., who said
yesterday that the death toll is
the highest fatality rate in the
history of the state.
The secretary laid blame for
the high death rate primarily on
increased traffic volume, danger
ous driving practices and higher
average speed on rural highways.
He added that cities showed no
increase in fatality rate and that
rural accidents accounted for the
high 1948 rate which is 20 per
cent above the previous high
traffic death toll of 399 persons
killed in 1941.
Last year's rate was 38 per
cent over the 1945 rate, based on
352 traffic deaths.
Farrell said there were more
motor ehicle accidents in this
state during the first nine months
of 1948 than for the entire year
of 1945. During that period 43.167
accidents were reported compared
to 42,922 during 1945. The secre
tary of state predicted the 1948
accident list would be approxi
mately 60.000.
SAFETY BILL INTRODUCED
WASHINGTON. Jan. 8 -(
Senators Johnston ( D-SC) and
Morse (R-Ore) introduced a bill
in the senate today to appropriate
I $5,000,000 annually to be used to
promote industrial safety
C. of C. Adopts Broad 10-Point
Civic Improvement Program
A broad 10-point program for
civic improvement, geared to
growing population and industri
al development of the Salem area,
was adopted last night by direc
tors of Salem Chamber of Com
merce. Industrial and tourist promo
tion, housing and airport devel
opment and a study of the need
for a combined city-county office
building are among the 1947 ob
jectives of the chamber, as ad
opted by vote after directors
heard Committee Chairman James
Walton's report.
President Keith Brown, who
conducted his first meeting of the
board at the chamber offices last
night, will assign the primary ob
jectives to appropriate commit
tees for study. The president em
phasized that the 10-point pro
gram embodies chamber matters
of primary importance at the
outset of the new year, but that
many other worthy projects will
go forward through standing
committee work or as special re
quirements arise.
TDTioiraDfflira
NINETY-SIXTH YEAR 14 PAGES Salem, Oregon. Thursday Morning. January fl. 1947
Unified
$6,000,000
J
ft
' .... v.'. .V
V 4 . f.
-
W'EEHAWKEN. N. J- Jan. 8 Dense clouds ef amoke rise from the
Weehawken, N. J. Railroad tag
pier. This pier and another adjoining and also damaged by the fire, were used for irelgnt export by
the New York Central railroad. It- was estimated damage would run at least $6,000,090. (AP Wlre
pboto to The Statesman.) (Story on page 2.)
Daily Rates at
Hotels, Motels
To be Freed
WASHINGTON, Jan. 8. -JP-The
government today ordered the
removal of rent ceilings on trans
ient rooms in hotels, motor courts
and tourist homes, effective Feb
ruary 15.
The hotel industry promised im
mediately that the action will
bring no "across the board" rate
increases.
May Gen. Philip B. Fleming,
head of the agency, said controls
will be continued on non-transient
rooms rented to weekly or
monthly guests "under the pres
ent quota provisions of the rent
regulations."
Fleming said decontrol of trans- ;
ient rooms in individual hotels
and motor courts will go into ef
fect on or after February 15 "as
each establishment applies for de
control and supplies the office of
price administration with a list
of its permanent rooms identified
by room number or by location."
PORTLAND. Jan. 8..-0JVA mo
tor court official said today that
transient rentals might actually
drop rather than rise when ceil
ings are lifted February 15.
"I won't be surprised if trans
ient rates drop 10 to 25 cents a
room," said Dan Hay, secretary
of the Oregon junior hotel assoc
iation and Oregon motor court as
sociation. "Occupancy isn't 100 per
cent any more, you know."
Weather
Max.
. 34
43
. 54
Min.
ZS
23
39
20
Precip
.M
.00
.00
trace
Salem
Portland ...
San Francisco
Cnicaeo
. 36
Wlllamett river -1 n.
FORECAST ( from U.S. weather bu
reau. McNary field. Salem! : Fair to
dav. becoming partly cloudy tonight
and tomorrow. Little change In tem
perature with highest today 3. Low
est tonight 30.
The program lists the following
points (not necessarily in order
of importance or priority):
(1) Flood control.
(2) Continued work of the
long-range planning commission.
(3) Inter-city good will, espe
cially through West Salem repre
sentation by mayor or his dele
gate on the chamber board.
(4) Housing.
(5) Airport development
(6) Tourist promotion, includ
ing marking of historical points
and publication of maps and pam
phlets. (7) Industrial promotion, re
gards both oldand new or pros
pective industry.
(8) Freight rate parity to make
Salem a competitive point
(9) Study proposed city-county
building.
(10) Better liaison with city
govemmnet, probably through
adding mayor or bis representa
tive to the board.
(Additional details on page 2)
NUMMO 1651
Senate
Fire Roars Through Pier
5?'
boats and fire bo a Is poor stream
And You Thought
Salem Was Wet?
ASTORIA, Jan. 8 -iP)- As
torians learned today why their
umbrellas are worn out.
The weather bureau added up
the 1946 rainfall and discovered
it totaled seven and a half feet
the most since 1937. The worst
year on record is 1933, when
Astorians got nine and a hall
feet of "Oregon mist."
Mill Workers
To Get 'Bonus'
Of 10 Per Cent
A 10 per cent increase of gross
earnings, adding around SI 2. 500
a month to the pay envelopes of
550 employees of Oregon Pulp
and Paper, will be effective from
January 16 to May 31, it was
made known Wednesday.
The increase constitutes a
"bonus" for the balance of the
current contract between the com
pany and the two unions work
ing under the uniform labor
agreement the International
Brotherhood of Pulp, Sulphite
and Paper Mill workers and the
International Ir otherhood of
Paper Makers.
The plan was disclosed by Karl
,W. Heinlein. resident manager of
the firm, who was informed by
the Pacific Coast Association of
Pulp and Paper manufacturers
that the association, on behalf of
its member mills, had notified
the two unions that:
"On stipulation that the current
uniform labor agreement is net
amended or modified in any way
the members of our association
have taken voluntary action to
assist in meeting problems pre
sented by you."
The problems," relating to the
cost of living, were outlined pre
viously in communications from
the. unions to the mills.
The 10 per cent "bonus" is to
be computed "on- total earnings,
including overtime and premium
payments."
The increase will affect 15.000
employes in 35 Oregon, Washing
ton and California mills.
Water Pipe Hung
Under Bridge May
Serve West Salem
WEST SALEM, Jan. 8 Defi
nite steps toward solution of the
local water problem were taken
today when Mayor Walter Mus
grave, Fred Gibson and A. N.
Copenhaver of the West Salem
water board met with Mayor R.
L. Elfstrom and Manager J. L
Franzen of Salem. Plans for sus
pending a water pipe line under
the Marion-Polk county bridge to
connect with the West Salem line
were discussed.
Members of the state highway
commission assured the members
of the water board it seemed
highly probable that permission
to suspend the pipe under the
bridge would be approved at a
coming meeting of the highway
commission. More definite details
are to be worked out at later
meetings with the Salem and
highway officials.
Backs Marshall
""t. '
1 flt.
'
v.
ty-
ruins of a freight pier today at
of water Into the smoke-shrouded
Ball Introduces
Bill to Abolish
Closed Shop
WASHINGTON, Jan. 8. -iPy-Senator
Ball fR-Minn) today in
troduced a bill that would abolish
the closed shop, not only in the
future but in existing contracts.
The Ball proposal would wreck
any agreement written or oral
that requires a person to be a
union member in order to be hired
or hold his job. It has strong sup
port but not so much as some
other current labor proposals
and a tepfific fight is expected.
From the "Journal" of the AFL
pattern makers union came a
warning that a legislated closed
shop ban would lead to a series
of strikes.
"In thousands of instances, an
article in the publication said.
the union members would refuse
to work with free-riders, strike
breakers and other obnoxious peo
ple. "Let congress stop that, if it
can:
The Ball bill would abolish the
following practices:
1. The closed shop, under which
nobody can work in the plant un
less he belongs to the union.
2. The union shop, under which
a non-union may may be hired but
must join right away.
3. Maintenance of membership.
under which nobody is compelled
to join the union but those who
do join must stay members or be
fired.
4. Preferential hiring, under
which an employer must take un
ion men ahead of non-union men
for Job vacancies.
The bill would apply only to
those companies affecting inter
state commerce.
Blast to Clear
Ferry Landing
The Yamhill landing of the
Wheatland ferry will be cleared
by blasting of a gravel bar which
was created by last month's
floods, according to Roy Rice,
Marion county commissioner.
A check of the ferry channel by
Rice, E. L. Rogers, commissioner,
and H. S. Swartz, county engi
neer, yesterday confirmed re
ports that the ferry was touching
bottom on the Yamhill county
side, and it was deemed imprac
tical to rig a drag line and bucket,
or to have the army dredge clear
the channel.
A powder man will inspect the
channel tomorrow and blasting
will be done in the near future,
Rice said.
WHALE MEAT IN ENGLAND
LONDON, Jan. 8.-(;P)-Whale
meat went on sale to the public
today for the first time in Eng
land and, with a truck drivers'
strike endangering the supply of
non-whale meat, the people
bought it as avidly as though it
were T-bone steak. Distributors
put the chewy red stuff on sale ir
fish markets, at about 37 cents a
pound, and no ration coupons.
No. 245
General
Approved
For Post
WASHINGTON, Jan. 8-H7P)-In
a swift and spectacular demon
stration of unity on international
affairs, the senate today unani
mously confirmed Gen. George C
Marshall as secretary of state.
The Republican-inspired, con
firmation was followed imme
diately by a bi-partisan move to
call Marshall before a joint con
gressional session for a foreign
policy review.
Marshall is now en route back
to this country from China where
he has spent the last 13 months
as President Truman's special en
voy to that nation.
At Guam today, the general's
executive officer, Col. J. H.
Caughey of Alexandria, Va.t told
reporters that Marshall did not
know of the actual appointment
to succeed James F. Byrnes until
he heard it on the radio en route
from Nanking.
'Had Discussed It'
Marshall knew his apopint
ment was impending. He said. "I
had discussed it with the presi
dent." The five-star general declined
to discuss his plans or his prob
lems. "I am sorry. I have to be silent
for the moment," he explained.
Discussion of possible political
Iidential race, brought a state
ment from Brig. Gen. Tristan
Tupper in New York that he
knows Marshall "has no active
party affiliation." Tupper is Mar
shall's brother-in-law and a
member of the firm which re
cently published Mrs. Marshall's
biography of her husband.
On opposite sides of Capitol
Hill in statements bridging party
differences, the theme continu
ation of an international policy
free from political strife domi
nated the public an dprivate dis
cussions over the surprise shift
announced last night bv the
White House.
Bi-Partisan Policy
Senator Vandenberg (R.-Mich.),
chairman of the foreign relations
committee, told the senate that
Marshall has the "total confi
dence" of the Republican-controlled
congress, and emphasized
the need to 'demonstrate to the
world this country's "continuing
and effective bi-partisan foreign
policy."
From Charles Ross, White
House press spokesman, came the
information that there has been
"an understanding" for some time
between President Truman and
Marshall that he would be made
secretary when Brynes retired.
Asked whether that had been
"a matter of months," Ross
nodded affirmatively.
Matson Navigation Co. to
Continue Airline Fight
PORTLAND, Ore., Jan. 8 -A)-
The Matson Navigation company
renewed its battle today for per
mission to establish air service be
tween Portland-Seattle and Ha
waii.
The firm notified city officials
here it had cancelled its applica
tion withdrawal. The civil aero
nautics board had voted to con
sider the Matson application on the
same day it was withdrawn.
Pric 5c
A-Bombed German Cruiser
Sinks Six Months After Blast
(Editor's Note: Don Whitehead. As-1 December 16 despite frantic ef
sociated Press chief of bureau at Hon- ; fnrtc tn uvp hr
olulu. headed the staff which covered
last summers atomic bomb tests at
Bikini. Now touring Pacific Island
bases, he returned to the Marshall
Islands and reports for the first time
this surprising aftermath).
By Don Whitehead
KWAJALEIN, Jan. 8.-0P)-Dis-closure
was made bv a naval of
ficer today that the 10,000-ton
Prinz Eueen, once proud cruiser
of Adolf Hitler's navy, sank near
ly six months after the Bikini
atom bomb tests - - suggesting the
bomb is both slow and sudden
death to big warships.
Apparently the cruiser was the
fourth major victim of the sec
ond test of July 25. Other capi
tal ships sunk by the underwater
bomb were the 29.000-ton battle
ship Arkansas which went down
almost instantly, the 33,000-ton
carrier Saratoga which sank sev
en hours after the blast, and the
32,700 - ton Japanese battleship
Nagato which succumbed five
days later.
The naval officer, who request
ed anonymity, said the Eugen,
which helped sink the British bat-
I le cruiser Hood during the war,
went down in Kwajalein lagoon
ft Yssz
Career Ends
r
Cae A, McKenna, state tax com
miasioner, wna died in a Sa
lem hospital last night. The
funeral will be held bi Pert
land. Death Takes
Commissioner
Coe McKenna
Coe A. McKenna, state tax
commissioner since has initial ap-
STlV" PwTh I;,. " !
died at 8:05 p m. Wednesday in
f tSalem hPlta!' K?'hertt hev,rart ;
taken Tuesday night with a heart .
ailment A former Portland ,
ICdllvi, lie was -J o jcaia uiu.
He was recently reapopinted
as. state tax commissioner after
expiration of his first term, which
ended December 31, 1946.
Held Degrees
An alumnus of Portland uni
versity and Notre Dame, he held
a political science degree from
George Washington university.
McKenna served in both the
state house of representatives and
the state senate, entering the
house in 1939, the senate in 1941.
He was past president of the
Portland realty board, past vice
president of the National Asso
ciation of Realty Boards, served
on the state tax investigating
committee of 1923 and was a
member of the interim commit
tee on taxation prior to his ap
pointment to the commission in
1945.
Taken to Portland
He was born in Omaha, Neb.,
October 22, 1887, and came to
Oregon with his parents at the
age of two. His widow, Lillian C,
whom he married in 1912, two
sons, James Francis and Coe A.,
and a daughter, Patricia Ann,
survive. The body was taken to
Portland for burial. Funeral ar
rangements have not been com
pleted. Snell to Return
To City Today,
Hall Arrives
His second inaugural address
virtually completed. Gov. Earl
Snell is expected back in the
statehouse today after a week's
stay at the coast where he has
prepared the speech.
As Monday's opening of the
44th state legislature neared, ad
ditional legislators arrived in Sa
lem yesterday, including Rep.
John Hall of Portland, speaker
of the house of representatives.
Hall said he has completed his
list of committee appointments
and has an alternate list for use
in the event the legislature votes
to reduce the number of com
mittees. State Budget Director George
Aiken stated Wednesday that the
governor's biennial budget mes
sage probably will be released
Monday.
Most of the legislators are ex
pected to be on hand for the
pre-session caucus at 3 p.m. Sun
day when various procedural
matters and clerk's appointments
will be threshed out.
(The navy department in Wash
ington, asked about the delay in
releasing news of the Eugen's
foundering, said notice of the
sinking was "classified" or re
stricted information).
It is believed that the under
water explosion of July 25.. tore
loose her stern plates.
This is the naval officer's story:
The cruiser was brought to
Kwajalein shortly after the
"crossroads" experiments - - she
was used in both tests and an
chored with other surviving tar
get ships, most of them too radio
active for crews to go aboard.
The Eugen was at anchor with
the Nevada, New York, Indepen
dence and Pennsylvania when she
began settling by the stern and
listing to port
Tugs were rushed to her side.
They towed her to a beach but at
10 a. m. on the morning of De
cember 18 the sleek fighting ship,
scarcely marked above the water
line, capsized. The bow plunged
to the bottom, leaving the stern
sticking out of the water. Al
though damaged at the stem, she
sank bow first because of the
beaching operations.
Asks Rent
Controls
Extended
Pleads for Price
Drop, Moderate
Union Demands
By Sterling F. Greea
WASHINGTON. Jan. 8 -JPr-President
Truman today called on
business to cut prices, on con
gress to maintain high taxes, and
on labor to be moderate in wage
demands.
He also asked extension of rent
controls beyond June 30, the pre
sent expiration date.
The requests were contained in
the president's first annual eco
nomic report to congress. It met
a varied reception. Senator O'Ma
honey (D-Wyo) called it a policy
for the preservation of the capi
talistic system." Senator Wherry
(R-Neb) scoffed at it as "just
a campaign statement.
Wherry and Senator Moore R
Okla) urged an end to rent ceil
ings, and Chairman Knutson (R
Minn) of the tax writing house
ways and means committee told
a reporter:
"I can't agree with the presi
dent's conclusion that we can't
1 fftV Or M A tmrZ n a
fid f bud
able us to cut taxes."
Mr Truman said he
charted are essential to sustain
uction
whjch as 1947
been so strong or so prosperous.',
The danger ahead, he said, is
that "consumer buying will fal
ter" because price increases have
cut into the public's purchasing
power.
Emphasises Price Cots
To prevent this from leading
to factory iay.of;s and curtailed
production, he urged prompt
steps to bolster buying power. He
emphasized price cuts more hea
vily than wage increases, as the
way to do it.
And in a complete turn-about
from the government's 1946 pro
gram of supporting nationwide
"pattern" wage increases, the
president said: Pay raises should
be based on "individual situations
throughout the economy."
The president also renewed his
plea that high wartime' taxes be
allowed to stand. He wants them
as a boost along the country's
climb toward a balanced budget
and national debt retirement.
Sets Economic Goals
The report, read separately tn
the two houses of the republican
controlled congress, set these twin
economic goals for the new year:
Employment maintained at the
peacetime record level of 1946
about 58.000.000 civilians at work
"or slightly higher."
Production boosted to a total
5 per cent higher than last year. -
But a "serious" drop in the
purchasing power of wages. Va us
ed by soaring prices now threat
ens the attainment of these goals,
Mr. Truman said.
He reasoned:
"If price and wage adjustments
are not made and made soon
enough there is danger that
consumer buying will falter, or
ders to manufacturers will de
cline, production will drop, and
unemployment will grow.
Council Recommended
The message was sent to capi
tol hill hours after President Tru
man's reading of his state of the
union message. It was based on
recommendations of the new
three-man council of economic
advisers, created by the employ
ment act of 1946 and headed by
Dr. Edwin G. Nourse.
A goal of 1,000.000 new, dwell
ings started in 1947 was another
recommendation, along with pas
sage of the Wagner-Ellender-Taft
bill in order to reduce the cost of
housing. Mr. Truman called it
a problem "even more serious
than in other lines because the
gap between consumer income
and housing prices is so great."
The Wagner-Ellender-Taft mea
sure, approved by the senate last
spring but stalled in the house,
contains, among other things" in
centives for the building of multi
family, moderate - rental housing
projects.
Governor May
Appoint Bilbo
JACKSON, Miss., Jan. 8.-TV
Governor Fielding L. Wright cf
Mississippi said tonight he has
told a group of legislators that if
the United States senate refuses
to seat Senator Theo G. Bilbo (ID
Miss) without a hearing or be
cause of charges growing out of
election tactics, he will appoint
him for an interim term until an
election can be held.
The governor said that at the
time he made the statement, "I
felt that I was speaking off the
record and I did not intend to
inject myself into the controver
sy in Washington, which I have
avoided so far."
"The essence of what I said
was this: If the United States sen
ate denied Senator Bilbo his seat
without a hearing before the sen
ate, or if they denied him his seat
on the basis of charges growing:
out of his election campaign, then
I would reappoint him for the in
terim term."
PARENTS OFFER REWARD
SEATTLE, Jan. 8.-;P-Parentai
of two marines lost en the still
un found 32-passenger transport
plane missing somewhere in
Washington state since Decern bej
10 offered a $1,000 reward todaj
to spur the search on.