O O. O. E3 E3-E3 EOQ O ao O ODD ooo leather Max. Min. M Pri M Jem ,, Portland Kan Francisco SS .00 . M rtaa) M triaca) .11 t'hicaifo .... 76 Xiiew York 92 60 .00 Wt llanv.it. tiuu ta u FORECAST ifrom L S. weathA W reau. MrNarjr fir Id. Salm): Continue fair today and tontgnt witn tiuko change in temperature. Hihet tooay SO to US degrees, lowert near M. Aft ernoon wirwlt will interfere witn dut 1'ijr. otherwiae weather will b favor able for all term acti-. POUNDDD 1651 NINETY -SEVENTH YEAR 10 PAGES Th Oraqon Statesman, Salom. Or., Wednesday, August 27, 1947 Pric. 5c No. 130 mo DE3 ClDD 0 O O o 123 m II slv ii if it ii in ill i i it ii ii ii ii As prices go higher and living eosif commence to Dinch. more crumbling isnoted. A little more price hiking and consumers really will rebel. Just now a considerable debate is going on over "who killed Cock Robin?' ' ju?t who Is responsible for present high price levels. Politicians lke to play with this one. The blame, like a shuttle rock, is batted back and forth be tween political opponents. Repub licans blame high prices on the Truman administration; demo crats blame it on republicans. The simple fact is, however, that you cannot borrow $250 billion and dump it inUj our economy without price inflation. Where the sup ply of money nd credit accumu lates faster than capacity to pro duce the result is inflated prices until production gets into balance, or until the surge of excess money spends itself. The government it elf bears heavy responsibility for the price inflation. In the pre-war period damps were put on prices but not on wages or prices of farm prod ucts. The government itself helped snoot wages up in its muster of men for defense plants, wun i wages and farm prices free wheel- j ing for a year it never was pos sible to hold a rigid line to stave off inflation. v Charged against the Truman ad ministration is an early readiness to toss controls overboard, like building in the fall of 1945. The president (Continued on Editorial Page) 2nd Cease-Fire Ordered; Dutch Free E. Borneo LAKE SUCCESS, Aug. 26.-7P) -The security council ordered The Netherlands and the Indonesian republic again today to cease fire in Indonesia and clear the way for settling their dispute, The Indonesians promptly said this was a "good thing." The Dutch said the cease-fire order could not be observed if the re public continued to "incite the In donesians to murder the Dutch and burn houses." It was approved by 10 nations, with Britain abstaining. BATA VIA. Java, Aug. 26.-AV FighUng continued along the Java and Sumatra fronts today and The k Netherlands took aonther step to wards formation, qf a projected United States of Indonesia Dy es tablishing the self-governing ter ritory of East Borneo. West Borneo and East Indone sia already have been set up as self-governing territories by the Dutch. The new territory embraces the whole eastern section of -the great island of Borneo. Fair Weather To Continue; MidwestCooh Continued fair weather for to day, with the highest temperature between 0 and 85 degrees was forecast by the local weather bu reau Tuesday night The maximum temperature Tuesday was 85 de grees. Some fog or cloudiness may be expected in the early morning. PORTLAND, ! Aug. 26-jP-Hu-irudity preentages clung to below the 30 per cent level considered hazardous in some western Ore gem logging areas today but the weather bureau forecast cooler temperatures tomorrow )snd easing of the fire danger. Salem's read ing -m'at 27 per cent. I By the Associated Preys Rains appeared to have ended for at least a day over the mid west corn belt, but comparatively cool air gave the hard-pressed crops and populace a welcome re lief from heat and drouth. MICE HEARINGS DUE WASHINGTON. Aug. 26-4Ah The joint congressional economic committee announced today that; one of its sub-groups investlgat-i Ing the high prices of consumer goods will hold public hearings in six western cities, including Port land, beginning in October. Animal Crackers By WASfcEN GOODRICH " think they call it a Quon- get Hat." """OiaraiTs S, pafllbSlD 5 Killed In Home Blazes By the Associated Prers Fire Joined highway accidents Tuesday in sk rocketing Oregon's violent death toll to at least It since early Sunday. Burned to death as they slept in their home north of Newberg early Tuesday were Mrs. Ralph Marple, 27, and two small daugh ters. Mrs. Edna Hill, 31, Shady Cove, died Monday night of bums suffered when, she used gasoline in trying to start a fire in a stove at her home near Medford. Also burned to death Monday was George P. Meinhardt, 37, as he slept in his Portland apartment. Mrs. Ardyth Thompson, 40, of Gibbon, died Monday night of in juries suffered in a crash at Ka- mela Thursday, boosting the state's total to 11 for the Sunday-Monday period. A sawmill accident at North Bend snuffed out the life of John "Jack" Jansen, 57, mill superin tendent for the Coos Bay Logging company. As he approached a fuel "hog" fast-spinning steel drum used to grind slab wood waste it shattered and pieces pierced his chest. Workers said it had been out of balance and he was approaching to inspect it. Two persons were critically in jured in the fire at the Marple home near Newberg. The father, Ralph Marple, 30, was seriously burned in escaping the blazing house after first throwing a daughter, Ireta, 7, from a window She, too, wa taken to a hospital in; critical condition. Patsy, 5, and Nancy, 3, died with their mother in the blazing four-room house. The fire, apparently start ing In the basement, was out of control when firemen arrived. A train crew saw the flames and turned in the alarm. In the fire at Medford, Mrs. Hill was the only victim. The gasoline stove .exploded, showering 'her with sparks and setting a blaze that destroyed the house. Her hus band, Floyd Hill, and five chil dren escaped uninjured. JVew Toll Span At The Dalles Before Board PORTLAND. Ore., Aug. 26-(P A: Columbia river toll bridge at The Dalles was proposed today by the Wasco county court in a report to the Oregon highway comrrJs sion that present traffic over the privately operated rlvtr ferry justified the project. Col. R. A. Tudor, former U.S army district engineer, said a fee of 55 cents per vehicle would pay off a bridge costing $1,800,000. The plan was taken under ad- visement. The commission refused a de mand by the Baker county cham ber of commerce to withdraw its petition to the federal power com mission opposing construction of the Oxbow dam by the Idaho Power -company on the Snake river. The short route from Portland to central Oregon via the Warm Springs highway is at least two years away from completion, the state highway commission told a Bend delegation. Engineer R. II. Baldock was di rected to report at a subsequent meeting on a proposal from Sher idan for widening the Salmon River cutoff from the east city limits to the bndge intersection. Among bids opened by the com mission: Lincoln county, Waldport sec lion of coast highway, .40 mile grade and widening, low bid by D.F. McKenzie, Salem, 141,645. Fire Guts Attic Of Food Market Fire of undetermined origin gutted the front part of the attic at the 12th Street Food market, Howard and 1 2th streets, Tuesday night. The market is' operated by Ronald and Sam Buschke. The blaze was discovered by Mr. and Mrs. Clare Ridgeway as they drove by the store. City fire men got the fire under control before it could spread to the low er floor of the store or the living quarters connected to the store, Considerable damage to stock was averted when firemen spread canvas over counters and piles or goods. Neighbors formed "bucket brigade" line to move furniture and produce from the store. Local Merchants Prepare To Comb a t When Credit ares Policy, Cases A board of Salem citizens Tuesday night brought within lo cal administration the federal rent control over Salem defense rental area which includes all Marion county an4 West Salem. Homer Smith, sr., was elected ! temporary chairman for the citi zens advisory board, and Eliza beth Lord, Robert F. Lowe and Floyd Wilson were sworn in as members by E. Daryl Mabee, Port land, rent director for the eight Oregon rent areas. Fifth member of the local board, Ralph E. Moody, was absent because of ill ness. The board's first official deci sion was to process cases of rent dispute and general policy only after the local rent office, headed by Clare A. Lee. has made its de cision (in cases of rent adjust ment) or has placed the case on the board's agenda. Board mem bers indicated, however, that they would hear all worthy cases if such advance notice was given through the rent of ice. Director Mabee stressed that the hew board's recommendations will amount to final order to the rent office so long as they are within the authorized scope of the 1947 rent act in which congress estab lished the citizen boards for con trol and administration on a local level. Mabee estimated 95 per cent of board work will concern opera tion of the rent office and "hard ship cases." The board also may decide on the adequacy of local rent levels and Issue a flat per centage increase or decrease ac cordingly, and may recommend direct to Washington, D. C, on decontrol of the area or any part of the area. The board has no au thority in eviction matters, now vested completely in local courts. The board expects tentatively to meet twice a month with its next session to be arranged for the second week in September. With Mabee and Lee at the meeting were Rent Attorney Ray Alber of the Salem (and other Oregon) areas and Pat Martin, re gional officer of San Francisco rent headquarters. Viola Moriarty of the local rent office , will be board secretary. Butter, Eggs Climb Again PORTLAND, Ore., Aug, 26-() The price of butter and eggs were scheduled to jump on the whole sale market here tomorrow, but ter two cents a pound' and eggs a cent a dozen for grade AA large and mediUm sizes. The boost will make butter to retailers 83 cents for grade AA and 82 cents for grade A. Eggs jump from 71 cents a dozen. ALABAMA AIDS SCHOOLS BIRMINGHAM, Ala., Aug. 26- OPl-Alabama voters apparently approved today by one of the most one-sded margins in state political history a constitutional amend ment to divert Income tax reve nues for school purposes. The measure earmarks an estimated $7,500,000 annually for increased salaries of the state's 20,000 class room teachers. Board Prep To Decide Rent Lynch Avers Affidavits Create 'Czar' for Labor WASHINGTON, Aug. 26 -P-The national labor relations board today spurned union effort to throw out the type of non-communism affidavit which lt re quires of all union officers under .the Taft-Hartley act' v President George Q. jLynch of the AFL Pattern Makers league charged the government's form of affidavit follows "a totalitarian technique" and offered a substi tute of his own which condemned all forms of dictatorship. The board rejected Lynch's idea and sent him a new supply of its own for himself and the officers of his 14,000 super-skilled pattern makers. Lynch declared the plan would Inflation Control Off By Conrad Prange Sta Writer. The Statesman After November 1 Salem shop pers will find relaxed credit con trols, may encounter slightly in creased prices and probably will open a lot of new charge ac counts, it was predicted here Tuesday by local merchants and credit finance agencies. Installment buying controls on such items as household appli ances, furniture and automobiles will be dropped on the first of November under a bill signed re cently by President Truman. Ex isting controls, which will con tinue until that date, were insti tuted in early wartime -under eco nomic control authority within tht- trading-with-the-enemy act. Fearful that ending of the con trols may create a credit war among merchants, local trades men are cooperating with the Sa lem Retail Credit bureau in in stituting voluntary credit controls. Controls Voluntary In an attempt to prevent cus tomers from pyramiding their credit beyond their ability to pay. merchants and credit men are proposing individual regulation of down payments and time-to-pay. Most merchants welcome the end of Installment controls, but some consequences." "When individual credit is turn ed from a matter of convenience into a tool of competition by eager merchants, then both merchants and customers suffer," said Fran cis Smith, manager of the Salem bureau. Associated Credit Bureaus of America. In 1938-39, he cited, bankruptcy and liquidation caused a loss of about a quarter of a million dollars to Salem trading area merchants. He thought that overloaded in ventories would cause many local merchants to push sales via the installment route. Increased pur chafing power through easier credit would have a tendency to boost prices at least until the country is back in full produc tion again. Cooperation Expected "Most merchants can and will cooperate in regulating credit into sensible channels," he said. "However, merchants cannot reg ulate creait as a group or they will run afoul of the U. S. attor ney genernl's decision of a year ago that such group action is in restraint of trade." With the lifting of controls on automobiles, the way is open for dealers to go back to the pre-war practice of small down payments and long contracts. Both automo bile dealers and finance agencies agreed that contracts should be lengthened to 24 months on new er models from the present 15 month maximum. It was indi cated, however, that the one-third down payment probably would stand. Salem business men agreed that the over-all result of the dropped controls would be increased pur chasing. This, they felt, would boost credit accounts, which have already increased more in the Sa lem area during the past year than the national average. Scarce items, they felt, would become scarcer. On the other hand, as one bank representative pointed out, Salem has a great many fixed-income state employes who may well benefit by easier credit terms. Also extension of contracts on household appliances to 24 months and reduction of down payments to 20 per cent may halt the pres ent drain on individual savings accounts. CHURCH GROUP MEETS FOREST GROVE, Ore., Aug. 26 --The fifth annual northwest regional conference of Congrega tional churches opened here today with registration topping 150. put his pattern makers "under a czar." This would come about, he contended, through a ruling by Robert N. Denham, NLRB general counsel, that all 15 members of the AFL executive council must sign. Otherwise the unions under them would not be entitled to the board's facilities. "It is rumored that a John L. Lewis, 13th vice president of the AFL, refuses to sign the com munist disclaimer and that his union has withdrawn cases pre viously filed in regional offices of the NLRB," Lynch said in a letter to Denham. Lewis is a mem ber of the AFL council. "You have created the oppor tunity for any Gromyko on the AFL council to say 'No'." nnro JsiiDuft Oil Agreement In Parliament For Debates TEHRAN, Iran, Aug. 26 -OTV The Iranian parliament was ready today to take up the controversial Soviet oil agreement us Iranian and diplomatic officials reputed that "10,000 Barzani Kurdish tribesmen, . backed by the red army" were assembled in Soviet Azerbaijan on the ' northwest frontier. "This may be another move in a Soviet war of nerves on the eve of parliament's consideration of the Russo-Iranian oil agreement," said one high diplomatic source. The oil agreement, signed by Prime Minister Ahmed Qavam in April, 1946, while Soviet troops still were occupying northern Iran, granted Russia oil conces sions in five northern provinces with Russia receiving 51 per cent of the shares for the first 25 years. The oil agreement already is the tenter of a political and dip lomatic battle and many members of parliament have expressed" the opinion it will be defeated. Prime Minister Qavam has pro posed to the Russians that the agreement be re-drafted. Reserve Meets On Thursday; Pay Scale Set The second organizational meet ing to activate a naval reserve unit in this area will be held ! Thursday at 8 p.m. in building T514 at the Salem airport, local naval reserve unit chief, Lt. Cmdr. Vernon Gilmore announc ed Tuesday. This will be the last meeting until September 11, when it is hoped that activation of the unit may be accomplished, Gil more said. He reported a number of for mer navy men have applied since the first meeting a week ago, but said it seemed not to be known that membership of the unit is open to men within a 50-mile radius of the city. Communica tions men and engineers' officers are particularly needed. Lt. -Cmdr. Roger Lasley, assist ant district director of the navy reserve, who is assisting in acti vation of units here and in Eu gene, stated he feared misunder standing about the pay for re serve personnel. One drill per week will be required of the men, he said. The Der-drill scale, as rnvirtwl by Lasley, is as follows: Appren tice seamen, jz.50; seaman 2c $2.67: seamon 1c S3: nettv nffi. cer 3c, $3.33; petty officer 2c, aj.oj; petty officer 1c, $4.50; CPO, acting appointment, $5; CPO, permanent, $5.50. The men are to be paid quarterly, Lasley said Both Gilmore and TjjsIpv fel that vacancies will be filled rapid ly mis lan, putting ail applicants over the 200 allotted billets nn a waiting list. A number of univer sity students are expected to ap ply when school starts to help defray expenses. Canada Probes Wharf Blaze PORT ALBERNI, B. C, Aug. 26 -(CP)-Business was all but par alyzed in Port Alberni, center of the Vancouver island lumber in dustry, today as plans for an in vestigation of the Monday $3,000, 000 wharf fire were made. Federal Works Minister Four nier in Ottawa said that "fullest possible investigation" will be launched immediately. Offering the major loading fa cilties in the port, the big wharf was a twisted, charred mass of wood. The British freighter SS Sampep, severely burned before it could be towed from the wharf into open water, was the Ft-ene of brief, outbreaks during the day. TRAINS COLLIDE PENDLETON, Ore., Aug. 26-(P) -Two locomotives and several boxcars were damaged and a transient suffered a broken wrist and cuts as a slow-moving west bound Union Pacific passenger train and a switch engine collided near Rieth, west of here, early to day. Cause of the accident was not immediately determined. PRESS PLANE HIT KELOWNA, B. C, Aug. 26 (JP)- Ray Munro, Vancouver Sun flying photographer, reported to police here today that Doukhobor terrorists had fired on his plane as he circled Brilliant, B. C. One bullet shattered the wing of the plane. A second tore through the plexi-glass top of the cockpit. Ground Broken V Ground-breakinr Is now underway at Falrgraunds ; road and Hunt street for the long-contemplated Hollywood district bank. Picture here shows the bank site looking through the lot toward the Rel mann sheet metal shop across Fairgrounds road. Bank will go op on far side of lot as here shown, facing Fairgrounds road, with parking area in foreground of picture. At work digging foundation trench In barkcround are Otto II. Helnke. 3S7S Center st. (left) and W. C. Howard. 3810 Center at. (Paolo by Don Dill. Statesman staff photographer.) U.S. Continues Work In Balkans' Problems Russians Trust' Bulgarian Courts WASHINGTON, Aug. 26.-IP)-Handed another Russian rebuff, the United States today turned to new measures in last ditch fight to prevent Bulgaria from execut ing Nikola Petkov, anti-communist opposition leader. The state department made it plain to reporters that urgent ef forts in Petkov's behalf will be continued. Moscow rejected a direct appeal by the United States and Britain for conferences on the case of Petkov, who was convicted of plotting against the new commun ist regime. The Russians said they have confidence in the Bul garia courts. ' Meanwhile a formal reply is awaited from the Sofia govern ment to an American plea for de lay in executing Petkov. The Bulgarian parliament to day voted to expel all the agrar ian df-puties and dissolve Petkov's party. Salem Woman Leaps from Hotel Window PORTLAND. Aug. 28 -P)- A young Salem woman leaped from a second story hotel room window in "sheer, fright" early today and was taken to a hospital with a fractured pelvis and spine in juries. Dorothy Meyers, 21, whose ad dress was believed to be 1179 Chemeketa st, was quoted by police as saying she heard an al tercation in the hallway outside her room, then two or more men tried to break down her dooir. She went to the window and Jumped. Three men were arrested on vagrancy charges. MARINE DRILL TONIGHT The marine corps reserve will hold the first of its regular- drill sessions after a summer layoff to night at 8 o'clock at the Salem airport in building T514. Leonard Hicks reported Tuesday night. 'If Bomb-proof Cavern Abuilding, It's Hush-Hush WASHINGTON, Aug. 26 -JP)-If there are any "atomic war" de fense caverns under construction in the New Mexico dessert, the armed forces made it clear today that they intend to keep all details a super-secret. The war and navy department, pressed for information on pub lished reports of huge caves be ing dug in a remote mesa between Albuquerque and the Sandia base in New Mexico, would admit only what was admitted a month ago: "The principaMield installation of the AFSWP f Sandia base." AFSWP stands for "armed forces special weapons project." A joint army-navy project charg ed with the development of atomic weapons, it is commanded by Maj. Gen. Leslie R. Groves, war time head of the famed Manhat tan project which developed the ffsmis . for New Bank ! -'.fV- Tsaldaria Would Yield to Neutral ATHENS, Aug. 26.-P)-Pre-mier-designate Constantin Tsal daris conferred for 45 minutes to night with U. S. Ambassador Lin coln MacVcagh on the Greek gov ernment crisis. Later it was re ported unofficially that the popu list leader indicated he would step down in favor of a neutral pre mier, but would not yield the post to Liberal Leader Themistokles Sophoulis. Sources close to" Tsaldaris said he offered to comply with "what ever the American government wishes." The meeting with. MacVeagh followed reliable reports that the U. S. government in Washington had expressed concern over the delay in solving the crisis and had urged speedy formation of a new cabinet 9 ! During the day, Tsaldaris and the 86 - year - old Sophoulis met face to face at a conference with MacVeagh, but Sophoulis blocked formation of a broad coalition government desired by the United States with an uncompromising demand for the premiership and rejection of a proposed appoint ment of a neutral premier. Price Upped By Studebaker And Ford Gars DETROIT, Aug. 28-OfVThe round of increases in new automo bile prices was completed tonight Studebaker announced increases which followed up the hikes an nounced earlier in the day by Ford, which only last Sunday had boosted listings on most of its cars and trucks. The Studebaker increases were: Champion model, $85; Commander $98; Land Cruiser, $115, and heavy trucks, $5, and light trucks, $85. Ford's increases on the Lincoln models ranged from $148 to $200; or the Mercury line from $86 to $226 and on the Ford station wagons and convertibles from $199 to $229. five atomic bombs exploded up to now. i Today's brief statement added: "Construction and operations at this (Sandia) base fall into the category of restricted data under the atomic. energy act of 1946 and axe also classified military in formation. i "Therefore, amplification x x x is considered undesirable." This was the latest of several development indicating the in tention of this nation to push for ward with -atomic weapons until and unless a plan for international control is agreed upon: 1. The war-built atomic labora tory at Los Alamos, N. Mex., is being expanded and converted into permanent construction. 2. The commission is establish ing proving grounds somewhere in the Pacific for tests and ex periments with atomic weapons. - 4 (eftooot) OffalOU Security Area Includes from Pole to Pole QU1TANDINHA, Brarll. Aug. 28 -(Ay- Nineteen American ire publics agreed today to fight jointly against any armed aggres sion occurina? in a western hemis phere "security region" extending from the arctic to tht antarctic. The proposal, sponsored by tho United States, " was accepted 'in animously by the delegates to the full lnter-Americar, conference committee on aggression and en forcement of measures after a 14 nation subcommittee approved it earlier. v 1 Nations Oat The only nations not voting on the agreement were Nicaragua, which was, not invited to the con ference, and Ecuador, whoe con ference status now is in doubt be cause of the week end change of government by coup d'ete. 1 Delegates said approval by :th full committee meant that ; its adoption by the plenary aenjlkm of the conference was a foregon conclusion. Under the agreement, the Am erican nations will rm to imme diate defense of the hemwphere if any attack occurs within the -curity region. Canada May Jeia Speculation arose among some delegates that Canada might join in the treaty In view that Canada was included in the .' "security region." The full committee approved four of the nine articles which a subcommittee offered for its con sideration. They are: Automatic assistance by American nations when one their number is attacked. all Determination by individual states to help the attacked nation on an emergency basis. Holding of Immediate consulta tions to examine what has been done and what more should! t done to assist the attacked Na tion. I Holding of consultations when the "territorial integrity,, sover eignty or political independent of any American state is affected" by aggression which is not an armed attack or by any threat of aggression or conflict or by any other "factor or situation" tbet might endanger peace in thm western hemisphere. Territory Widespread A Guatemalan move to have th treaty operate against "totalitar ian regimes" and '-fifth column activities" was defeated in a com mittee vote. The vast "security region" would embrace the Narth Ameri can and South American contin ent, Canada, Greenland. Alaska, the Falkland islands. South Ork ney islands; the south polar re gion (Antarctica), the Sandwith and South Georgia islands of the antarctic and a 300-mi!e sea belt encircling both continent and taking in strategic island posses sions of the American nations; Pickers Called ) In Hops, Beans With many Salem area hop yards boosting their picking wree scale to between 3',i and" 5 certs per pound, the Salem firm labor office issued a call Tuesday ! for more hop and bean harvesters. Bean yards are in full swing with a bumper crop, Mrs. Gladys Turnout!, farm labor assistant, ' said. Virtually all bean and hep vards have camnin fari1iti complete with nurseries and j stores. Tuesday the office sent iSftO workers out to yards with j 3 growers. Transportation to bear and hop yards are available eacr morning at 6 o'clock at the office. ' Legion Flans Backing For Military Training NEW YORK, Aug. 26-ivPr-Plan.-for an all-out American Legion drive for enactment of universal military training took shape today at meetings of several of the or ganization's committees preceding the 29th annual convention. "-''airjiaii'aaaa Our Senators kkjp Won ' ' 5-3 t