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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Aug. 10, 1947)
o o o o cztDtz? o err o DO o ODP' OOO ODDO otzo Weather - i dOQD DDD O O CD O L3 O alm 74 4 fotiiarwl , 71 r ;iT Wan ftanclsro M M 40 Chicago . 17 94 .M New York N 71 JO mn Bin Wlllm-11 rrtrrr -31 f4. rORrtAST (from US. ihr bu reau, MrNarjr field, ftaleml: Clear to day with rising dartlma tmpralur: hufwul temp. M, lowest M Witirwr will be favorable for alt farm activ ate today. , KJO)IIUffl POUNDDD 1651 i re ewrdrd as the most "solid cur- rency in the world j though it is no longer convertible into gold. In fact, the price of gold here. $35 an ounce in terms of our currency is the established world price. But there ar places where gold commands a j higher price. Thaf is in the areas of weak currencies where men of wealth are eager, to convert currency I into something of more durable value. This fact was brought to public attention in a news story, from Manila a few days i ago, which told that the finance secretary of the iland government was stop ping a prospective flight of f ly ing, boats due to carry 377.000 ounces of gold from the Philip pines to Macao, a iPortuguese eoverned island near Canton, China. The price in Macaowas.sald to be $51 an ounce, the buyers of the gold being merchants from China where trade in gold Is pro hibited. : Macao is but one of the active grey or black market in gold in India Quotations have run to 182 an ounce, in Palestine to $86 ! and in &ypt to $68. In the Philip- . the domestic market for : pines gold ha been running to $45.50 mn ,iurirf 1 Moat countries control the i nrire; of cold in term of their own currency and require it to be sold to their own govern ments. They forbid export or im port trading in gold. But there are oates like Macao where no controls are irajKaed: and there in bootleg trailing. The price? merely reflects the willingness of buyers to buy, and since goldj trading b ! i (Continued on editorial page) 5, 4; Demos Refuse ! To Step Down; Rap Wallace PORTLAND, Aug. 9-WVDem- cratic state central committee .officers refused flatly today to step down from their posts, and the former chairman rejected the. demand of Democratic National Committeeman Lew Wallace to call a new election. Byron G. Carney, Milwaukie, elected chairman at a meeting Wallace -contends , was,; Invalid, lathed back today by ..calling Wallace "republocrat." Henry Aiken, Heppner, former committee chairman, said he would not call a new election to replace the May 17, one in which only 38 votes were cast and Wal lace's proxies thrown out Wallace demanded a new election after being xnotified by the attofney general's office that 76" members are needed for a quorum and that proxy votes must be admitted. "I can't see any sense in it," said Aiken. "Carney has been recognized in Wasihngton, DC, (by the democratic national com mittee). I wouldn't ask anybody to come in again and spend their money just to humor Wallace." Carney declared in a prepared statement that Wallace's proxies were ruled out by the credentials rommittee because. some of them were not valid. He charged that Wallace "as 'usual, is working with ..his republican friends to rule or riun the Oregon democratic or ganization." Porch Collapses As Pigeon Alights OLIVET, Mich., Aug. 9-(JP)A pigeon, unaware of its own strength, landed on a . porch f Mather hall, the Olivet college science building. The porch col lapsed. School officials said the rickety structure had been closed off in preparation for its rebuilding. The surprised bird fled. FAIR ON GLOBAL TRIP PRESQUE ISLE, Me., Aug. 8 iTVThe first leg of a round the world flight in two light planes was completed here tonight when former army pilots Clifford V, - Evans and George Truman made unscheduled overnight halts to gather weather data. Animal Crackers By WARREN GOODRICH "She's ttred of chewing her cud... thafs bubble gum.' United States currency is Oucvas Smb Sraaicats NINETY-SEVENTH YEAR mm I I - Earthquake (Hughes to Leave U.S. D tf Cargo Plane Flops Says Military Called Him 'Stuck Up' WASHINGTON, Aug. 9-OPy-Uovrd Hughes told senate Inves tigators today he began spending for entertainment when he got con fidential i word that army officers considered him "stuck up" rich man who wouldn't "kow tow." Also; the millionaire plane designer, manufacturer and flier sol- cmnly testified thathe would leave much-criticized cargo plane fails to uy. I II put the sweat of my life in- to this thing" Hughes told a war investigating subcommittee. "My reputation is rolled up in it. "I have stated several times If it is a failure, I would leave this country and never come back. And I mean that." f 1I hi Net Guaranteed Hughes said he could not guar antee thei plane Would fly or that it would be a success, that he only hoped Jt I would. But he said the criticism pf fhe project and of the money spent on it was "unjusti fied." i The subcommittee is investigat ing the wartime contract the gov ernment gave Hughes and indus trialist Henry J. Kaiser for the aerial cargo craft the world's biggest plane. It also Is looking into. Hughes' contract during the war for photographic reconnais sance planes. None Delivered ! None of either, was delivered while the fighting was on. The committee wants) to know why. If ughes gave another install ment on his story today, along with a lecture on aeranautics. Today's installment went again inty expense accounts for enter tainment charged to Hughes' conopany. Absent; however, was Hughes publicity man John W. Meyer who has told . in previous appearance of spending $164,000 in entertaining wartime officials anq their companions. The com mittee is seeking elaboration from Meyer. : 1.000 Masons At Ceremony Approximately 1000 Masons at tended an "under-the-stars" cere mony atop Bald mountain in the Eola hills Saturday night. The ceremony was sponsored by Sa lem) Masonic lodge; 4, AP and AM. Principal speaker for the oc casipn was Grand: Master of the Masons of Oregon Walter Ran som, Eugene. He was accompanied by 12 members of his official fam ily wno assisted in the cere monies, i Exemplification of the Master Masons degree was carried out in full! regalia by members of Salem Masonic lodge 4 by conferring the degree upon one of its members. The area was under surveiiance of lodge members and the Oregon mounted posse while the cere monies were carried out Masons from lodges throughout the state were represented at the meeting. Film Export Ban Stuns Hollywood; Economies Due 1 . HOLLYWOOD, Aug. 9.-(JP)-Movie land was stunned, and wary, today over losing the Brit ish market for its productions. Consequences of action in New York by the motion picture asso ciation directors, halting all ship ment of U. S. films to England in retaliation against a British-im posed 75 per cent tax on import ed pictures were endless. It cut off revenue which am ounted to $68,000,000 last year in Hollywood s best foreign market Cuts in top stars' salaries were possible. Lesser employes may be laid off in large number. Produc tion schedules undoubtedly will have to be revised. There may be increases in American boxoffice prices. Reciprocal agreements be tween British and American pro ducers and ' exchange of talent probably will be upset Multnomah County to Start $2 Million Project PORTLAND, Aug. 9.-WVA $2,000,000 county building pro- cram probably win start in Mult- nomah county .ia-October. " Architects f are " drawing plans for a new juvenile court and home and a new tuberculosis pavilion at the county farm. BODIES OF t AIRMEN FOUND TRIESTE, Aug. 9-(JP)-A Flying Fortress containing the bodies of eight United: States airmen has been discovered in 45 feet of wa ter off Lignana, near here. The plane is presumed to be one shot down during the war. 18 PAGES on the country for good if his giant, Parade, Game On Mt. Angel Fclc Finale MT. ANGEL A children's pa rade at 1 o'clock and a baseball game between the Mt. Angel nine of the Willamette Valley baseball league and the Valsetz team, of the Oregon State league and fi nalists in the state semi-pro tour nament, will wind up the Mt An gel Flax Festival Sunday after noon. Speeches by ex-governor Charles A. Sprague, of Salem, and Father Alcuin, formerly of Mt. Angel, featured Saturday's pro gram. Both Sprague and Father Alcuin decried the present tend ency to let the flax . industry go into the doldrums. Sprague gave a brief resume of the flax history in Oregon, pay ing special tribute to former gov ernor Charles Martin and E. J. Griffith for their work in build ing the first flax plants, one of which was at Mt. Angel. He blamed the present, conditiow of the industry more on the tendency of growers to turn to more profit able crops than on foreign impor tations. Father Alcuin urged more work toward informing people about the flax industry, suggesting projects in the schools. "In time of war," he said "others realized the im portance of flax, but in time of peace, we are the only ones. Other speakers were Father Damian Jentges, Mt. Angel pas tor, who gave the address of welcome; Dean Wm. Schoenfeld of Oregon State college; Miss Alene Philips, secretary to Gov. Earl Snell and who represented him; Mayor Robert Elfstrom of Salem, Senator Howard C. Belton, Can by; County Judge Grant Murphy; Circuit Judge George R. Duncan, King Bing Wm. Dyer, jr.; and Fred Klein, president of the Mt. Angel Flax Growers association. (Additional details on page 2.) Collection Agency Association Holds Conclave in Salem Adolph Rebe, Portland, was elected president of the Collection Agencies association of Oregon, succeeding Chris Seeley of Salem, at the organization's annual meeting held at the Marion hotel Saturday. Seventy-five delegates attended the conference. Other officers named include: Con Dillon, Eugene, vice-presi-. dent; George Schuele, Portland, treasurer; and Loring Greer, Sa lem. reelected secretary. Schuele was named delegate to the na tional association meeting. Claude Murphy, state real es tate commissioner, spoke to the group on various phases of the new law enacted by the 1947 leg islature dealing with credit asso ciations. Murphy's office issues the licenses. The new advisory board. created by the legislature, was also present. Corn Prices Hit As Sun Parches CHICAGO, Aug. 9-7-A sizz ling sun beating down on parched mid-western corn fields today caused apprehension over the crop outlook and sent prices soaring to new historical peaks. I From one end of .the main corn I belt to the other all reports were T the same "King Corn," most im portant of American feed crops, already was in trouble and soon would be in more if rains do not come soon. As prices jumped to fabulous levels on the Chicago board of trade, crop experts scanned Weather bureau forecasts of con tinued clear skies and high tem peratures from Indiana to Ne braska, heart of the corn belt In Macy, Nebraska, the Omaha Indians scheduled repeat per- Shakes Th Oregon Statesman, Salem, Oi- Sunday. August 10. 1947 Damages In Area Negligible By fha Associated Pre Several stages were shaken briefly Saturday night by a small earthquake which a Chicago seismologist said was "bigger than ever experienced before in the midwent aieu." There were no Immediate re ports of serious damage or of casualties. The quake occurred in an area within 200 miles from Chicago, starting shortly Ix-foie (EST), and continued minutes. (juake reports were from Michigan, Ohio, 10 pm. annul received Illinois, Wisconsin and Indiana. The. Rev. Alphmwc Schmitt, S. J., Loyola university seismologist at Chicago, said, "The active cen ter might have been in Ohio." He said the quake was record ed as starting at 9:47:22 (EST) and tremors continued three to four minutes before it "complete ly ended." "It was capable of small dam age," he said. By comparison, it was "a small earthquake," Father Schmitt said. In Cincinnati, the xavier uni versity seismograph recorded "minor earth shocks of three to four minutes" duration, starting at 9:47:25 p.m. The report was made by the Rev. Victor C. Stechschulte, S. J. He said the shocks centered either in north west Ohio or southern Michigan. Stevenson's Bail Raised Fremont Russell Stevenson, charged with assault with intent to kill in connection with Thurs day night's shooting of John Sny der, took until Monday at 10 a. m. to enter his plea, when he ap peared in Marion county district court Saturday. Snyder, a resident of the hotel at 285 N. Commercial st which Stevenson bperated, remained in "very serious" condition early to day at a Portland hospital, where he was taken following the shoot ing. On the motion of the district attorney. Stevenson's bail was raised from $3,000 to $5,000. Saalfeld to Head Service Officers i 1 PORTLAND, Aug. 9-6P)-Elec-tion of H. C. Saalfeld, Salem, as chairman of the county service officers' association, a new organ ization to coordinate aid to veter ans, was announced today. The Salem man was elected by county veterans' service officers in Oregon, at a three-day school here to discuss veterans' regula tions and benefits. France to Air Germany Views to U. S., British WASHINGTON, Aug. 9 - (JP) -The United States agreed today to an early American-British meet ing with France to receive and study French views on the Anglo American plan for increasing in dustrial production in western Germany. The American action is consid ered a diplomatic triumph for French Foreign Minister Bidault who protested against the industry plan last month. Fabulous Levels Midwest Fields formances of their sacred green corn dance for tonight and tomor row. The dance a traditional supplication for rain to keep corn green was first held yesterday. While Nebraska state agricul tural statisticians said ' Nebraska corn was. at a critical stage in its development, with more moisture and cooler weather badly needed, the weather bureau held little hope of a break in a heat wave sending - temperatures up around 100 degrees. 3 In Chicago, center of the cash corn trading country, a car of corn sold at $2.49 a bushel, which compared with a $2.36 4 peak established in August, 1917. All but the extreme lowest quality corn sold above that former re cord high. Several States in Midwest Quonset Hut Houses Salem Toymakiug Firm I! hi ' 'f I nil,; .til'! ' I i laajaaagtahM ' ''4ftBtSSSJIRar Another Salem industry Just getting started Is BaUantyne and Heiti Co., makers of Bal-Toys. Shown in top photo at work in their quon set hut factory at 2738 N. River rd.. are. left to right. Don BaUan tyne at the band saw, Mrs. Kenneth Seeley asembling magazine racks, and Charles Heits at the router. Partner in designing, produ cing and selling, Don BaUantyne. left, and Charles He its, right, are veterans who are working to realize wartime dreams of their own business. They are discussing the kid-appeal of this rubber-band pis tol which they plan to make and market in kit form. (Photos by Don Dill, Statesman staff photographer.) (Story on page 4.) Eastern Oregon to Get Crop Insurance PORTLAND, Aug. 9.-(P)-Only five Oregon counties - - Morrow, Umatilla, Sherman, Gilliam, and Union --will be included in the wheat crop Insurance program next year. Murl E. Cummings, state direc tor of the federal crop insurance corporation, said insurance in 15 other Oregon counties, including all the Willamette valley, will end with the 1947 harvest. Cloudburst Halts Santa Fe Trains SAN BERNARDINO. Calif, Aug. 9.-(JP)-A terrific desert cloudburst struck the Needles, Calif., area about 200 miles east of here todaV, sending embank ments cascading over the Santa Fe's main line and washing out sections of transcontinental high way No. 66. Rail traffic was interrupted, the Santa Fe announced. The original plan was to detour east and west bound trains through Parker and Wickenburg, Ariz., but it was la ter learned that a tunnel mouth on this branch sector had been blocked by a slide, and it was be lieved rail traffic would be sus pended until this was clearedJ away. Indonese Advise U. N. Of.'Mop-LV Operation BATAVIA, Java, Aug. 9 - P) -The Indonesian republic advised the U.N. security council today that the republican troops were "compelled to undertake mopping up and preventative operations" because the Dutch were "continu- ing military operations with the er fishing fleet to about a thous aim !of extending their territory." ' and boats last night. Fi Food ozen Bank Mortgage Foreclosed Sale of the unfinished .building of the Salem Frozen Food bank and its land, in the 500 block of South Commercial Street was made by Marion county sheriff Saturday morning to Oregon Mu tual Savings bank of Portland, in execution of judgment on mort gage foreclosure. Sale price was $54,682.72. the full a m o u n t of judgment and costs. Construction of the storage plant, by William C. Gabriel, halt ed last year. The contractors, C. M Corkum company, obtained a lien on the property, and Gabriel re taliated with a suit to cancel the lien, alleging failure to comply with contract agreements. Marion county circuit Judge George Duncan found in favor of Gabriel and the . lien was set aside. "The Corkum company an ticipates an appeal to higher courts and consequently the mort gage foreclosure sale was consum mated to clear title only," Gabriel said Saturday. The bank's plans for the struc ture were not disclosed. Alcohol Treats Asthma, High Blood Pressure NEW YORK, Aug. 9-;P)- Suc cessful treatment of some,c8ses of high blood pressure and chronic asthma by injecting alcohol into nerve cells alongside the spine is reported by Dr. Lawrence V. Lindroth of Christ hospital, Jer sey City, N. J., in the American Journal of Surgery. SALMON START RUN ASTORIA. Aug. 9-?VAstoria canneries operated at full tilt to day, as chinook salmon began running in the Columbia river. The August run boosted the riv Price 5c GIsEngag em German JeweL Treasure Hunt BERLIN, Aug. 9 -W- The van ishing Jewels of German royalty lured American investigators on a $2,000,000 treasure hunt tonight through a bizarre maze that al ready has ' involved a dozen na tionalities in Berlin s underworld and promises to lead to an Inter national incident German Prince Ferdinand von Schoenaich-Carolath told - inter viewers he and his wife had sub mitted to truth serum tests to satisfy investigators of the accur acy of his story that the jewels belonging to his mother. Princess H ermine, the late widow of Ger many's last kaiser, had myster iously disappeared from a trunk in the house of an American friend where he had kept $5,000,- 000 of the German royal treasure. A woman emissary, he said, had "risked her neck" to smuggle the jewels from his mother's apart ment at Frankfurt -on-Oder in the Russian zone, where she died Thursday, into the American sec tor of Berlin. Attlee Facing Facing Crisis! LONDON, Aug. 8.P)-Prime Minister Attlee, accused by the conservatives of seeking "totali tarian powers" to deal with Brit ain's economic crisis, . faced a new conflict within his own labor par ty tonight over the government's nationalization program. Persistent but unconfirmed- re ports that some cabinet members were opposed to carrying out plans to nationalize the steel in dustry during the crisis were fol lowed by the calling of a special private meeting of labor members of parliament for Monday. One political writer said leftist intellectuals and trade union members would demand a direct "yes" or "no" answer on itee from Attlee. Ill Degrees in South Dakota ' By th Associated Press One hundred degree plus heat returned to a wide area of the sun-reared midwest Saturday and weather forecasters said no "rea relief" in rain or substantially cooler air was in sight The new heat wave worked westward from Montana and the southern great plains states bring ing temperatures in excess of 100 degrees to South Dakota, Mis souri, Nebraska and western Iowa. Temperatures up to 100 de grees were forecast for the Great lakes area by Monday. Pierre, S. D., was one. of the hottest places on the weather map with a 1 1 1 degree reading. Kansas City had 106 degrees. KUBBER STRIKE NEAR AKRON, O., Aug. 9 -UP- The ClO-United Rubber Workers no tified the B. F. Goodrich Co. to day that unless it agrees to company-wide bargaining a strike of 21,000 employes in the company's seven plants would be started August 14. NAVY SHRINKAGE NOTED WASHINGTON, Aug. 9 - W) -Two years after the end Of the war, the navy reported today, its fleet of combatant ships has shrunk from nearly 1300 to 285 in full operation and 21 in reduced status. No. HI glhnfc 72 Hours Estimated t rip l i SEATTLE, Aif. lr-.yT-Glebe - Girdling H I I am Odem seek eff fresa Elmea dorf field al Anchorage. Alas ka at 12:47 a. m. Monday, Pa cific standard time, far Chi rac en the last leg f hte are-and the - trerld flight, Nerthwest Airline was la lafarmed by Ha Aacherage headquarters, lie was headed non-step for the field front which his record-seeking flight started. , ANCHORAGE, Alaska, Aug, t Pilot William Odom landed her tonight after a non-st'ip flight f approximately 3,300 mile from Tokyo In slightly more than 11 hours. His liombftholl cam down at 11:33 p. rn I'atific Htri'lord Tim (2:33 a. m. Eaitetn btandaid Time). The elapsed time fur the Tokyo- Anchorage flight was 11 hours 17 minute, an average speed of bet ter than 300 miles an hour. It brought his total elapsed time to 81 hours 30 minutes for an estimated 16,500 miles. Iat Homestretch . Odom, heading into the home stretch in his dask tor a new record, said he would take eff as soon as his plane could be refueled and prepared for the takeoff. A lunch was prepared for him. as ordered ahead by radio, and placed in the plane. He didn't want to take time to eat it cn the field. A large crowd was at Elmen- dorf field to see htm swoop in low over the field, bank and swing back onto the runway. Odom jumped immediately from the plane to aid the ground crw ' in readying the plane, men went : to operations ' headquarters to check on weather reports. Awfully Tired' He appeared In good physical shape but said "I'm awfully tired." He said be had had to fly by manual control all the way from India after his automatic pilot was broken in India. Til be in Chicago between 11 and 12 Sunday, Chicago time," he predicted, which would give him a total elapsed time on the trip between 71 and 72 hours. This compares to the time of 78 hours and 55 minutes he set in the same plane recently on a round-the-world jaunt with his sponsor, Mil ton Reynolds- The trip over the Pocific was very monotonous," he added. "I thoughtll'd never get here." 2t-MlIe Tail Wind Odom said he had a tail wind of about 20 miles an hour boosting him along the route from Tokyo. The lunch that was fixed at his advance order included a pot cf weak tea "with plenty of sugar." turkey and ham sandwiches "With out crusts, three oranges and three apples. Odom, 27, saved time by short ground stops and by flying direct from Calcutta to Tokyo, skipping the Shanghai stop of the previous flight . He appeared more tense and nervous than tired, but said, Tm getting pretty sleepy." He started taking stay-awake drugs on the Pacific hop. H doe not unoke. Surplus Sale Red Tape Cut WASHINGTON, Aug. 9.-(JPh-The red tape surrounding sale of war surpluses to veterans start ing their own businesses or get t ing established professionally was slashed today. Pre - sale certification restric tions, under which a veteran's right to buy had to be established first before he could get any sur plus equipment, were abolished by the war assets administration. Veterans anxious to buy surplus goods henceforth will need only two documents, ,WAA said, a dis charge certificate, and a simple statement insuring integrity. 17 DIE IN TRAIN WRECK DONCASTER, England, Aug. 9 WV Two London and Northeast ern railway trains, crowded with weekend holiday seekers, crashed outside Doncaster station today and company officials said 17 persons were killed and nearly 50 injured. - Our Senators rfej Won ti&j 7-2