J h.. ! 111 I o. LAI aies Tax? imnrrY-srvENTH year CRT The -senate passed with but six dissenting votes an amended bill levying a sales tax. Accompanv ing legislation will refef the mea sure to a vote of the people in ei ther June or November, 1947. Dif ferences between house and sen ate versions will be ironed out by conference committees. ' f The contemplated levy I 3 per cent on retail sales of all tangible - personal property with food' sold ior consumption off the premises exempted. The distribution of the proceeds is a matter of cutting the 'pie into' six pieces, according to the senate version.. - ' J ! ' One-sixth would go to counties. ' One-sixth would go to incor porated cities. - - One-sixth would go to schools. One-sixth would go for public welfare. v Two-sixths would go into the . state general fund.- " Actually though there are hed ges on all the "sixths" except the last. The amount going to coun- tie and cities and school districts must be used to offset property taxes. Thus half the proceeds go . to the relief of the general prop erty taxpayer. ' - The sixth which is tagged for public welfare does not go to sup- ' plement the grants to the aged and the destitute. It goes into "reserve fund" to be used "only if the liquor revenues do not equal the amounts appropriated, from them for public relief likewise the first $12,000,000 of - the one-sixth a Dotted to schools goes into a "basic school reserve account'' - a reservoir to be drawn on when proceeds of income taxes do not prove sufficient to take care of the basic school support fund voted last November. - That in brief is the bill. The voters can take -it or leave it at lection time. f " ' The -debate in the senate .over ai 5 t . - . uk bui was mua. mere was gooa reason for "that Arguments for end against the sales tax have ' been- rehearsed so many times. (Continued on Editorial Page) Britain Avers Russian Veto Strangling9 . LAKE SUCCESS, N. Y April 3 -V Britain declared today that soviet Russia "strangled the ma jority will of the United Nations security council by vetoing a Brit ish resolution censuring Albania in the Corfu channel mine case. This accusation touched off once . more a lively battle over the veto right of the five great powers, and that argument temporarily eclipsed the Albanian-British dis pute. ' : :r-;::: '- Andrei A Gromyko, soviet dep uty foreign minister, who has in voked nine of the ten vetoes Rus sia has cast in the security coun cil, listened calmly to Cadogan. Then be joined with Dr. Oscar Xangev of Poland, in calling Cad egan "out of order" for throwing the veto issue into 'the Albanian The current dispute arose over mine damage to two British de stroyers close to the Albanian shore in Corfu channel which caused the deaths of 44 British sailors last Oct 22. Cadogan said direct negotiations with Albania for apology and compensation had failed. The council was .given the case on January 10, and seven of the 11 delegates voted for a watered-down resolution which held , that the mines could not have been laid without the knowledge cf Albania. Animal Crachcrs By WARREN GOODRICH "Yoa ran out of names? Vfm ran out of numbtrsT liil k$ wa., - 18 PAGES U. S. Eyes Seizure Of Phones WASHINGTON, - April 3-M-President Truman tonight con sidered intervening to prevent a nation-wide telephone strike which union leaders 'described as seemingly "inevitable." - . .. ' Mr. Truman told a news con ference he is investigating to de termine whether he has authority to seize the industry. ; Mr. Truman's seizure powers' under"' the Smith-Connally labor disputes act ' expired last Decem ber 31. However, some ' officials are studying ? the federal com munications act, in the belief that it may permit seizure. - -Federal Power Doabted , . Secretaryof Labor Sch we lien bach said be may - ask Attorney General Clark for a ruling on the government's powers. He informed newsmen, how ever, he probably will wait un til- Saturday before making such a request, because experience has shown "they never start talking seriously until the last 24 hours." John-J. - Moran, chairman of the National Federation of Tele phone Workers, told reporters: "If they (the government) seized the telephone Industry, and there's a law against striking, we'll obey the law. But I don't know of any law which gives them the power." ; Little Hope for New Law f All : concerned conceded that the negotiations are in a stale mate, - and J. A. Beirne, NFTW president, today - messaged top telephone company officials that "the apparent lack of collective bargaining" Indies ter "that a strike is inevitable." A . bill - to authorize the presi dent to obtain ! injunctions against strikes in key communi cations and transport industries was approved by the house labor committee 18 to 3 yesterday. But hope -iias . been abandoned for getting - it through - congress '.be fore Monday's Is. m. (local time) strike deadline less than four days off. ' Beirne said that in event of a strike emergency telephone serv ice will -be furnished by' the unions to police, fire departments, hospitals "and other services vi tal to the preservation of life and safety. ' But he said this policy will continue only "as long as man agement (Of the respective ; com panies makes no attempt to assign management- personnel to the performance of non-management duties." The union demands. $12 weekly pay increases and other contract revisions; Logging Jobs Break Record Oregon' part hi the national effort to - provide material for pressing housing needs is reflect ed in an employment analysis which shows that February em ployment in lumber -and logging plants broke all off-season rec ords in the state. . ... The state unemployment com pensation commission announced yesterday that 59,000 logging and lumber workers on payrolls in mid-February exceeded the for mer high of 57,000 such workers employed during February, 1942, and the 10-year average for Feb ruary of 46,000 workers. The commission's special analy sis noted that, although present employment is 6,000 less than the post-war high of August, 1946, employment, the seasonal decline is considerably lower than usual. The report ascribed this condition to the unprecedented demand for wood products and the moderate winter weather. Linn to Slash Aid toNeedy - ALBANY, April 3.Hf)Small er allotments for Linn county's 700 welfare recipients will be giv en until June 30, in a drastic at tempt to eke out general assistance- funds, Mrs. Ruth Marsters said today. . The county public welfare ad ministration said the move, was unavoidable after the county court refused to grant extra money. Salem Firm Bids Low ' - On River Bank Work Low bidder on a proposal to extend; the Bauer Lane revet ment of the Willamette, river north of Eugene and to build bank protection -was Robbins and Webb of Salem, the army engineers an nounced , Thursday at Portland, according, to Associated Press. The firm's bid was $25,377.50, higher by $1458.12 than govern ment estimates. . Salem. Oregon. Friday Lewos FEays Krag Ftr Mime Desooire Where Blast Killed Miners' CENTRA LIA, I1L, April i la Centra 11a mute Ne. 5, where ,111 eest t miners lest their lives March 25, Bey Cappa. U. 8. boreaa of mines safety instructor, views an overturned ear. This first Interior fteeoe-4 -ef the mine was made by Ralph Walters. Chleage Times photograph er, who was chosen by lot (AT Wlrepbote to The Statesmaa). Order Says 518 Dangerous; Truman Says No TRemovaF - " WASHINGTON1 April 3w-VFive hundred eighteen mines pro ducing 26 per cent of the .nation's soft coal were closed as "danger ous" by Secretary of the Interior Krug today, and John L. Lewis called the action "a deathbed confession." V-'' " Lewis indicated his miners will go back to work in the others Monday morning at the end of their "mourning" layoff for-Hhe'lJt victims, of the Centraua, 111., ex plosion, But he shouted new demands for the ouster, declaring Krug should have , acted , sooner and roasting him as a "scheming, de signing politician faithless to his trust- . . , . President Truman quickly and vigorously defended the 'cabinet officer, He told his news confer ence Krug is an efficient public official and he has not even con sidered removing him. . Krug shut " down the mines, sprawled over at least 19 states, just as Lewis, before a house la b o r sub- committee, demanded more rigid safety laws and got support from several congress men. - ' i ; - - He also won support' for a pro posal that congress return the $700,000 fine paid. by the ynited Mine Workers for contempt of court He suggested that the mon ey be used to aid the widows and orphans of victims of two mine disasters. The 518 mines which Krug closed produce 616,000 tons of bit uminous coal a day and employ 102,699 men, according to William J. Dougherty, spokesman for the solid fuels administration. . Defending his order of the "mourning shutdown, Lewis said it was necessary to "attract atten tion" - - to get congress and Krug to act' CENTHALIA, HL, April 3-ff-Secretary of the Interior Krug re ported today that a federal in spection made less than a week before the Centralia coal mine ex plosion In which 111 died March 25 showed "no imminent danger." Krug, federal coal mines ad ministrator, submitted, a prelimi nary report to a U. S. senate sub committee which began a federal investigation of the tragedy here today. Previously a company superin- l subcommittee revealed that some of the workers trapped in the mine telephoned to the main shaft for aid immediately after the ex plosion. ' V Truman Discounts Red Party Danger , WASHINGTON, April Individual communists in govern ment posts are a menace in the eyes of President Truman but their party as a political force is not a danger to the nation. ; That was the explanation the president gave to his news confer ence today of a letter he wrote to George H. Earle, jr., on February 28 saying that "I am of the opin ion that the country is perfectly safe so far as communism is con cerned we have too many sane people." : "v: BOISE SECOND SAFEST -CHICAGO, April 3.-JP)-Boise, Ida, tied with Watertown, N. today for second place among cit ies in the 25,000-50,000 population class in the 1946 national traffic safety contest conducted by the national safety council POUNDDD 1651 ' -r- Morning, April 4, 1947. Marshall Asks romise, rations ' MOSCOW. April 4-PH5ecre-tary Marshall urged the council of foreign ministers tonight to adopt a compromise proposal on Ger man reparations in an effort to smash the deadlock, on this key issue barring four-power agree ment on Germany's future. t The meeting, lasting for more than four hours, was enlivened when Soviet Foreign Minister V. M. Molotov accused British For eign Secretary Ernest Bevin of defending dictators and what Molotov said was the kind of de mocracy prevalent in Greece. Soviet or French stands blocked all progress on German negotia tions. In the only issue of the day which saw the Russians, British and Americans on one side, the French impeded' action by refus ing to agree on establishment of nationwide political parties and trade unions for Germany; Marshall told the ministers that the United States was . willing to consider limited German repara tions from current production, provided the allies . agreed to leave In Germany a number of industrial plants now earmarked for capital reparations. Fireworks Plant . Blaze Toll at 12 CLINTON. Mo. April Z.-iJPj-The raging fire that swept through the Brown Fireworks factory, lev sn Brwt knnin, ih in m. eling the one-story frame build ployes, claimed two more lives to day. Mrs. Morton Johnson, 51, and Mrs. Hazel Shepard, 28, died this morning from burns, bringing to 12 the number dead from the blaze that followed an explosion at the plant about 2:30 p.m. yesterday. Ten of the 28 workers making toy Fourth of July buzz, bombs were killed outright Two of the three remaining injured are in critical condition. " County Heads View Progress on Ferry Members of Marion and Yam hill county courts r.Thursday in spected progress of the new Wheatland ferry,-which is being constructed at the ferry site. Judge Grant Murphy and Com missioners Roy Rice and Ed .Rog ers of Marion county pointed out new features of the ferry to Judge H. M. Hoskins and Commissioners Homer Ross and Albert Youngberg Of Yamhill county. The ferry is expected to be completed in about two months, according to Ted Mc Kenzie, county construction' fore man. . ! Comp Repa "i Mips Told To Start WASHINGTON, J April 3-JP)-The v United States jammed through an order I for an imme diate start on reparations from Japan today in the face of pro tests from some other ' members of the 11-nation far eastern com mission. A diplomatic official! said the action taken to benefit China and other war-torn lands irew protects from' Kuvtian French, Indian and Australian represent atives at a commission meeting. '''It was the first time the United States has resorted to such dras tic action. In doing so, it was said to have been supported; by New Zealand, Canada, China, The Netherlands and the Philippines. Great Britain steered clear bf the dispute. MacArthnr Geta Order The maneuver was' accom plished by rommitioii meeting today when the United States is sued an "interim directive" to Gen. Douglas MacArthurj supreme Allied commander for Japan, telling him to put the plan into effect Immediately. 'Under commission rules the directive is subject to later com mission review, but it cannot be changed unless- the U. S. as one of the "veto powers' agrees. This development came to light when the state department re leased a text of a statement given by Gen. Frank R. McCoy, U. S. member of the commission, at a closed session today. Philippines, China Benefit McCoy told the commission that on February 13 the U. S. gov ernment submitted the proposal, to make a start on taking repara tions, to the commission and ad vised it that the U. S. considered the plan an "urgent first move in getting .reparations removals started : He pointed out that the start of aetual reparations removals from Japan has now been delayed for over a year. x j McCoy then announced the U. S. tJecision to send the "interim directive" to MacArthurj This program is designed to give. China, The Netherlands, Britain, and the Philippines a certain percentage of available industrial reparations from Japan immediately for relief purposes. U. S. Not to Share i . Reparations going to The Neth erlands are destined for the East Indies; those for Great Britain are for Burma, Malaya and Brit ish colonial possessions in the Far East - China will receive 15 ;per cent of reparations already declared available; the Philippines will get 5 per cent; The, Netherlands 5 per cent and Britain 5 per cent. McCoy said the United States will receive nothing for itself un der this program and emphasized that the percentages assigned to the four countries do not "preju dice their own or any other coun try's interest in final j national percentage shares of Japanese reparations." a Firm to Boost Valley Service Mid-Willamette vallejf facili ties will be improved, gas com pany officials stated yesterday,' if Portland Gas and Coke company's application for SEC approval of $2,500,000 in loans from Portland banks is approved. District Manager J. A. H. Dodd listed among items in the $3,000, 000 building program i contem plated for this year a booster feed for Salem low-pressure distribu tion to augment capacity of the 300-horsepower compressor now used on the high' pressure side. Another construction i project may be additional compressor units at Tualatin, and Portland to increase carrying capacity of the high pressure main serving Wil lamette valley points. National Debt at New Postwar Low WASHINGTON, April! 3 -OP) The national debt dropped today to the lowest v point since June 30, 1945.? Redemption of most j of the $1,500,000,000 in government se curities which the treasury offer ed to pay off in cash sent the debt down to $257,786,305,339 as of April 1. Weather Max. 5 53 55 - 33 Mini. Precip. Salem Portland . Saa Frjincisco Chicago New York 43 .OS 47 ! .01 49! .00 38 j tract Willamette river .a reel. FORECAST ( from U.S. weather bu reau. McNary field. Salem): CeneraUy cloudy with light rain howem today and tonicht. Highest temperature to- Paying ."y SI. Lowest tonigni ti. -i ' - " No. 7 Showers in Store For Easter Hats Milady's Easter bonnet will have more than frills upon it Sunday morning if the weather bureau is correct. It also will be dripping wet Moist weather conditions are forecast for west of the Cas cades in Oregon tomorrow and Sunday by the McNary field U. S. weather station. Weekend snow is predicted east of the mountains. Crack Zephyr Crashes at 75 mph; 1 Dead CHICAGO. April 3.-JP- One person was reported killed and 33 injured, eight of them seriously when the Burlington railroad's speeding Twin City Zephyr was derailed tonight in suburban Downer's Grove by a tractor that fell from a puinK freight. The eastbound Zephyr passer ger train, which a railroad spokes man said ordinarily passes through Downer's Grove at 75 miles an hour, is of modern, stainless steel construction, and an observer said the structural strength of the cars apparently held down the num ber of dead. A reporter said that none of the eight cars in the train was damaged badly. John Albrecht, Du Page county sheriff, gave this account of the accident: As the Zephyr, going east to Chicago, where it was due at 11 D.m. (CST). was" pulling past a westbound freight a large farm tractor fell off the freight directly in the path of the Zephyr. The coupling between the en gine of the Zephyr and the train snapped. The first two cars ca reened against the west corner of the brick Downer's Grove station in a shower of masonry- The en gineer, Clarence Thurston, was wedged in his cab and had to be nit out. - The next two cart were derail ed but remained upright The en gine blocked three sets of tracks. Senate Denies Reref erral of Nomination WASHINGTON, April 3 David E. Lilienthal. President Tru man's choice for chairman of the atomic energy commission, scored a major victory today when the senate refused, 52 t 38, to send his nomination back to'committee for an FBI check. This was widely interpreted as meaning that the senate will" con firm' Lilienthal when a final vote comes, perhaps next. week. Senators Vandenberg (R-Mich) and Taft (R-Ohio), sometimes re garded as the "big two" among senate republicans, split on the is sue. Taft supported the recom mittal motion. Th$ senate had agreed In ad vance to recess until Monday if the. motion lost voting to recommit were II re publicans and 7 democrats, while the Victorious side included 18 republicans and 34 democrats. It was a bitter defeat for Sen ator McKellar (D-Tenn), who has been fighting Lilienthal at every opportunity for years. . The roll' call included: Republicans against committal Morse. (Senator Cordon was ab sent as chairman of the commit tee investigating the mine disas ter.) Added Daily Set, Portland PORTLAND, Ore.. April 3-WP)-Sheldon F. Sackett. Coos Bay, Ore., newspaper publisher who recently moved into the Seattle and Vancouver, Wash., fields, to night . announced intention to start a daily newspaper in Port land also. It would be the third daily In Portland. Sacket announced purchase of the Metropolitan Printing com pany here for approximately $1,000,000. Its printing facilities will be used to change his recent ly acquired Portland . Sun from a weekly to a daily, he said. He added that the change-over would not come for several months.' - Sackett said ex-Sen. Hugh Mitchell of Washington had agreed to become editorial direc tor of the Sackett newspapers. Truman Sees 'Trend' WASHINGTON. April 3 -OP) A beaming President Truman to day interpreted the triumph of democratic Martin Kennelly in the Chicago mayoral election as the beginning of a trend to the democrats. Price Sc Psr odd QoaesfeOu , . ' By Weadeil Webb; y ! ' , Managing Editor. The Stateamaa j Admitting thai nothing is certain but death and mor taxes, there certainly was every indication today: that ;t night's moon, if any, would find the 1947 Oregon legislature on its collective way home. t j .j The well-known adjournment fever became evident at the statehouse early Thursday, rose a notch when the house beat down moves to consider one-tabled bills and settled in to stay at a; high pitch when the senate, with surprising speed, stamped final approval 21 to 6 to the measure for! a referen dum on the sale& tax. - j-. -r. ; ' . Uj.' T -J The senate also passed house-approved measures .providing :lor boosted income tax exemptions if the sales tax is ratified at referen dum, lowered exemptions if it is defeated, and for a 1 per cent with , holding tax on salaries. 3 All these measures, however, were amended to some extent and compromises are expected to be worked out today. Compromise Necessary la Sales Tax Election Date ! . . A compromise also will be necessitated on the election date for the sales tax, the house having voted for June 24 and the senate foe November 4. - ' f. . ; - The house completed" Its Thursday calendar In mid-afternoon, but the, senate - - wading through the heaviest legislation it has farrdV this session carried on until 103 last night. - . Major legislation action finished by the senate Thursday -in, addition to all-but-final action on tax measures included that on house-approved measures; '- I V i ; . " 1 r - Requiring counties to levy up to 4H mills in property t?x fo public welfare, or whatever below that amount Is needed to meet their demands (26-2); i . . t 2 --Ratifying the proposed constitutional amendmeat to limit presidential tenure to two terms (25-3). j j J--Allowing state acceptance of the $.000.000 Klamath ' Fafls marine barracks, and appropriating $620,000 for its use a a school for vocational education (24-4). r I, .j 1 i. 4 --Voiding the transfers of property belonging to recipients e old-age pensions, if such transfers are designed to avoid" state claims to recovery (19-6). ' ? r ... ; i- . ? , Cemmanity Property Law Repassed by Senate 1-1 1 Re-passed with bouse amendments, thus ending the issues, wero measures (1) making Oregon a community property state; (2) dis couraging aiscrtmtnauon in nir- , Ing as to race, color, ancestry, sex or union membership; (3) broad ening the powers of the state fish commission. Major final actions taken by the house Thursday included passage of senate-approved measures: ,' 1. Authorizing construction of a $750,000 of flee building for the state highway commission in Sa lem. 2. Providing for an interim com mittee to study salaries of county officers. 3 -Asking the federal govera men to retain the war assets ad ministration office in Portland. 4. Making a rural school dis trict j la w . operative next Janu ary 1. , . Defeated In the senate was the house-approved measure to li cense and . tax bookmaking on races. 7 'C Defeated In the bouse " were proposals to repeal the rural school district , law; ' require as sessors to meet certain specifica tions, and levy a 30 per cent tax on slot machine receipts to raise an estimated $4,000,000 a year. The latter proposal, reached the floor with a do-not-pass commit tee recommendation which was adopted 29 to. 26. The vote came after Reps. Giles French and Henry Semon con tended such devices would con tinue operating regardless of law and that it was unfair to raise revenue from property and in come levies without taxing -racketeers, and after Reps. Stanhope Pier and J. E. Bennett declared the bill constituted the "semi-legalizing" of gambling and "surrender to the racketeers. Basin Commission Continues Surviving an attack in the sen ate and sent to the house was the measure appropriating $18,125 for continuance of the Willamette river basin commission, defended by Sen. Douglas McKay as vi tally necessary. Pushing through the senate and going to the house was a resolution providing for an .in terim committee to study gam bling, with a view to recommend ing control, suppression or taxing, . The senate Thursday also up held Gov. Earl SneU's veto of the measure providing lor the siate acquisition of Camp White for hosDital use. The vote was 15 to 13. with 20 needed to over-rule. The joint ways and means com mittee estimated the session will cost $395,000, providing it closes tonight, including allowances for interim committees, legislative lounges and other incidentals ori $4817 a day. Cost of the last ses sion 69 days and a record at that time was $232,000, of $3347 a day. - - -. " . More than four carloads of paper have been used tor legis lative calendars -and measures since start of the current session last January 13. Today the -82nd and probably true last of the session finds the senate with 18 and the house with six measures up for final passage. Calendars Not Indicative But the calendar is not partic ularly indicative of the work ahead. Moves for reconsideration of bills already passed or defeat ed are deemed certain to be made. On the schedule for the house are senate-approved bills provid ing for statues of Oregon pio neers in statuary hall in Wash ington,, and making constables appointive instead of elective.: Set for final action to " the sen a: are- measures liberalizing rules for absentee ballots; let ting dispensers of game licenses change and! retain an extra 25 cents for . handling; allowing counties to help finance buildings fo- veterans, and permitting is suance or bonds . to usance a state-wide reforestation program. Both the senate and house will resume at lo a. m. lor perhaps their final meeting of 1947. . , Sales tax story, on page 2: Legis. action on page 6. Aid for Greece Has Approval; j U.N. May Halt WASHINGTON. April S -f The senate foreign relations com mittee stamped 13 to 0 approval on President Truman's Greek and Turkish aid program today aftes tacking on an amendment giving the UN restricted power to half the program. j u . -- It was the first b!g test of thf proposal to bolstemhe two Med j terranean countries against com munism by granting them $400, 000.000 worth of financial ar-4. limited military aid. , ; r A senate vote may come next week. Meantime.: an Associated Press survey showed a majority: of the house foreign affairs con mittee also favors passage, -; The senate committee approved! a modified version of an amen4 ment written by it J chairmen Senator Vandenberg (R-Mich). This new version, worked out aM ter consultation with the under secretary of state,. Dean Acheson, reads: - : '-I . "The president Is directed to) withdraw any or sli aid authr ized herein under any of the foU low circumstances: 1 f i j "(1) If requested by the gcv ernments cf Greece and Turkey, respectively representing a ma jority of the people of either sue i nation; ' ...-- . r f'(2) If the president . Is offii cia41y notified by the United Na tions that the securiQr council finds (with respect to which find ing the United States waives the exercise of the veto) or that the; general assembly ifinds that ace tion taken or -assistance furnih d by the United Nations-makes the continuance of such assistance) unnecessary or undesirable; , "(3) If the president finds thai ' any purposes of the act have been substantially accomplished by the action of any other intergovern-i mental organizations or finds fha the' purposes of . the act are in . capable of satisfactory accompe lishment.' County Welfare r Policy Revision Set for Today f The- Marion county welfare corrmiissioa will . meet today at -1:30 pjn. to discus a new policy in welfare benefits as the result of changes to state matching fund policies. County 1, Judge Gran Murphy said yesterday. f; i Usually the commission meets the third Monday of the month, but . the . advance 1 meeting . was called to iron out , the problems caused by the 20 per cent reduc tion -of state -matching funds for general assistance, from $15,09 ' to $12,000 per month. Murphy ex plained. . : - - . ; . , The county welfare program im divided into assistance for th blind, ; dependent children, per- , sons i. over 5 years of ace and general assistance. Under the new matching plans j the general as-, sistance fund receives more from the state and the others less. During the month of March tho county paid out $22,393 for gen eral assistance, but with the new plan the county would have paid only S 19,654, or a reduction ef X12 per cent, with a' saving of over $2000 to the county. Judge) Murphy declared, ; Thus a new policy, of benefits Is needed and will be worked out today, Murphy , indicated. - i V. ,