O Q ODD rd.OO ODDO OC1 OQSff O Q c?
o
ODD OOD'OC
r- -'
ttfiOti
mm
POUNDID 1651
Th Oregon Statunaxx. Salem. Oregon, Friday, October 31, 1947
Price 5c
No. in
?-? --t:v ' " ' .
iiX j. -V, rv -i - -
jXj Vi?VV ' X . l : NINETY-SEVENTH .YEAR 18 PAGES
Banking
Houses
Indicted
eairclhieirs PSinidl
Sltoa44eiredl
" 'tw " V 7 I i.X i,V h . vA . i
r. s . , -,-'1C V S
x? V I - vr; vx:
X. S - f' 1
KLAMATH FALLS. Oct. 30 The
bedies ml Ortxan's top offlculs and their pilot today. Tbe crart erasnea
late ft batte near the California line Tuesday nifht. Photo at the right shows
trend-search rescue workers removing . the body of Got, Earl Snell from
the wild country where the corernor. Secretary of State Robert S. FarrelL
Jr, Senate President Marshall Cornett and Pilot Cliff Home of Klamath
Falls lost their lives. (AP Wlrephote to The Statesman.)
fLPCDCDDa
, Coverner Snell, Secretary ol
Btate Faxrell and Senator Cornett,
whose death in a plane crash was
finally confirmed when ground
searchers reached the wreckage,
had one quality in common:
Friendliness. They liked people;
and people In turn liked them.
That is what makes news of their
untimely deaths so crushing; they
were known personally to so many
people over Oregon, known so
well they could be hailed as Earl
or Bob. or Marshall.
Governor Snell built his po
litical career on ,; his personal
friendliness which was not mere
ly politeness but based on a-sincere
interest in their welfare, and
a readiness to extend a helping
hand. I recall once when the
board of control was on a trip in
central Oregon. Snell heard of an
old friend who was working
nearby. We stopped the car and
went, to a sheepshearing shed
where his friend was at work and
the two had a brief visit. It was
typical of the way he drew to
himself a host of friends of all
clafses. I think his extreme cau
tion in controversial issues was
due in large degree to his un
willingness to cause offense to
people whom he knew.
There were certain things which
Earl Snell stood for in govern
ment One was good government
He wanted efficient administra
tion, promptness in dispatch of
Eublic businers, courtesy always
i dealing with
(Continued on editorial page)
Hu irhes to Taxi
Flyinj
LOS ANGELES. Oct 30-UP)-Howard
Hughes announced today
that hit 200-ton flying boat
subject of a congressional inquiry
reopening Monday will leave its
dock for the first time for water
trsti Saturday.
The mulnimillionaire plane ma
ker, oil operator and movie pro
ducer declined any statement be
yond the announcement that trac
tors and tugs will haul the behe
moth, with its 320-foot wi'ng
tpread, out for the first time Sat
urday and that on Sunday he
will cruise around the harbor on
taxi tefts.
- "It would be made clear," said
spokesman, "that the ship will
not fly for month, probably not
until next fpringV i
Animal Crackers
By WASREN GOODRICH
"You think you got trouble?
Linen, friend, step down here
piomemt. I want to tell you some-
twisted wreekare of plane yielded
Gornett's Pilot
Convicted of
CAA Violations
KLAMATH FALLS, Ore., Oct
31 -VPh The civil aeronautics ad
ministration today opened an, in
vestigation of the plane crash that
killed Oregon's three top officials
and one CAA inspector disclosed
the plane's pilot twice had been
convicted of violating CAA regu
lations. E. S. Leach, senior CAA inspec
tor for the Portland district said
in Portland that the pilot Cliff
Hogue, killed in the crash, was
fined $100 in 1943 after another!
crash that claimed one life.
Leach sajd records disclosed
that George Collins, 17, of Willow
Ranch, Calif., was killed in that
crash. Sept 4, 1843, at Lakeview,
and Hogue subsequently was con
victed in a CAA hearing of violat
ing four regulations, including
overloading and improper main
tenance of the plane.
Leach added that in 1941
Hogue's pilot's license was sus
pended 60 days for giving flight
instruction without an instructor s
rating.
Conducting the investigation
here is Leon D. Cuddeback, region
al head of the CAA air safety
board, assisted by District Inspec
tor J. T. Feeney and Inspector R.
L. Kagy from Eugene.
Cuddeback said he may later
call a public hearing on the crash
because of the "public interest and
importance of this accident"
Body of Aurora
Airman Due on
Funeral Ship
The body of another of Marion
county's war dead is aboard the
army transport Stevens Victory,
due to arrive today at Brooklyn,
N.Y., army base, according to an
army announcement listing the
body of Navy,Xt (Jg) George A.
Racette of Aurora as among 78
being returned in the third ship
bearing war dead back to this
country.
The announcement was trans
mitted by Associated Press from
Washington, D.C., upon army. re
lease for today.
The Statesman's war record
show Lt. Racette died at the age
of 26 -as a result of navy air com
bat in the Atlantic area. His par
ents, Mr. and Mrs. Emile Racette,
Aurora route 2, were notified of
his death by the navy on Jan. 14,
1944.
FIGHT NEAR CHANGCHUN
PEIPING, Oct 30 -P)- Chinese
communists, said by government
dispatches to total 100,000 men,
pressed fierce new assaults today,
on Kirin and made diversionary
stabs at the outskirts of Chang
chun, Manchurian capital 60
miles to the west.
State Office Idle Pending New
Chief; Several Names Talked
The office of the secretary of
state, largest of the state depart
ments, remained virtually closed
today under an informal opinion
by Deputy Attorney General Rex
Kimmell, while various names
came under discussion as possible
successors to the late Robert S;
Farrell, jr.
Kimmcll informed Harold Phil
lippe, chief auditor tor the state
department that while some ad
ministrative routine probably
could be carried on subject to la
ter authorization, any transactions
such as the issuance of warrants
would be subject to question be
cause the department has no
chief.
There is no authorization in the
law providing for an acting,, sec-
the
Mall TaCies Oath at ,
Somber Ceremony
By Wendell Webb
, Managing editor, Th Statesman
Gravely and amid a silence borne of recent tragic events, John
Hall, Portland attorney and speaker of the house, became Oregon's
governor in simple ceremonies at the state ho use Thursday afternoon.
He was sworn in by former gov. Jay uowerman, nis law panner,
in the chief executive's panelled recepVon room. Three score state bf
ficials and other friends stood nearby. The new chief executive's on
ly words were "I do." spoken solemnly in pledging to uphold the laws
of his state and nation.
There was no program, no speeches. Voices were hushed, and ev
en those who stepped up to shake
Pastors Vote
friendship.
Train' Support
Cooperation with , the "Friend
ship Train" gathering food for
Europe was voted Thursday in a
special meeting of the Salem
Ministerial association. The goal
will be the $900 needed to com
plete purchase of a carload of
flour.
For the flour. $2,700 has already
been raised by the Methodist
church at Halsey, Ore. The asso
ciation said all funds in excess of
$900 provided here will be used
for other foodstuffs to go on the
train. Freight service is being
provided by the railroads and
water transportation by. the gov
ernment The association arranged for
contributions to be made through
local churches this Sunday, as
well as daily, from 9 a.m. to 4:30
p.m., at the Salvation Army head
quarters, 241 State st All dona
tions must be in by Tuesday.
Oregon has already provided
two carloads of foodstuffs from
Portland and a carload of wheat
from eastern Oregon.
Bandits Net
$110,000 Cash
BOSTON, Oct 3QMAi-Six ob
viously well rehearsed bandits
held up a Hyde Park factory of
fice today and escaped with $110,'
000 in small bills - the payroll
of the Sturtevant division of the
Westinghouse Electric corporation.
Five of the . men walked into
the main office about 8:15 a. m.
- - a few minutes after Paymaster
W. R. Marshall and five assist
ants unlocked and entered a large
vault to begin counting out the
wages of 2,000 workers.
One of the bandits wore a gun-
nysack over his head, and two
others wore harlequin masks.
This is no Hallowe'en party,'
one of the men announced in the
office. "We don't want to hurt
anybody - we just want the cab
bage."
retary of state,. Kimmell said, thus
obviating the possibility that As
sistant Secretary of State Harry
Schenk would be named, by Gov
John Hall temporarily.
No drivers'- or motor vehicle li
censes are being issued anywhere
in the state. ,
Many names were mentioned
for Farrell's successor, Schenk
being among those most frequent
ly under informal discussion. Oth
ers included Reps. ? Robert C. Gile
of Roseburg and Earl H. sHill of
Cushman, and Sen. Eugene Marsh
of McMinnville.
Governor Hall said Thursday
he would make no announcement
until after the funeral of the three
top officials who died in Tues
day's plane crash. , ',r...t
hands with the state's new leader
spoke softly, bneliy.
Appointment Pending
Governor Hall, who was ill at
his Portland home when word
came of the plane-crash deaths
which forced him into the state's
top post by succession, conferred
few minutes with Deputy At
torney General Rex Kimmell, on
whose advice the secretary of
state's office had ceased to func
tion pending appointment of a suc
cessor to Robert S. Farrell, Jr.,
one of the crash victims.
But no successor will be named
for a few days at least, the gov
ernor said in commenting that his
new office had been so suddenly
thrust upon him that he was not
ready to issue any public state
ment beyond the expression of
sorrow and regret he had voiced
upon receiving word of the deaths
of Gov. Earl Snell, Farreii, his
Portland neighbor and dose
friend, and Senate President Mar
shall Cornett.
Officials at Ceremony -
Many state officials witnessed
the swearing-in ceremony, includ
ing State Treasurer Leslie Scott,
only surviving member of the re-;
cent board of control; Sen. Allan '
Carson; Reps. Joe Wilson of To-J
ledo, R. C. Frisbie of Baker, Earl '
H. Hill of Cushman and Robert CJ
Gile of Roseburg; board of con- !
trol Secretary Roy Mills; liquor
administrator William Hammond;
deputy state police superintendent
Lee Bown; budget director George
Aiken; p r i s o n superintendent
George Alexander; state highway
engineer R. H. Baldock; highway
counsel J. M. Devers and former
Gov. Charles Sprague.
Mrs. Hall was present with Mrs.
Lee Bown.
Halls Keturn Home
Aiding in the brief rites were
Governor Snell's grief-stricken
staff, including Alene Phillips, his
secretary for many years, and Eric
Allen, his private secretary, but
the governor's office 'remained
closed except for essential busi
ness. Also at. the ceremony was the
late secretary of state's father,
Robert S. Farrell, sr., and many
other friends in the state's polit
ical life.
The Halls returned last night to
their Southwest Kings avenue
home in Portland which so sud
denly became a mecca for state
business as a result of the most
tragic plane crash in Oregon history-
Meantime, flags on all state
buildings, the postoffices and else
where were flying at half-staff
and messages of condolence-lodd
ed into the homes and offices of
the deceased officials in unending
stream from all parts of the west.
(Additional details on page 10.)
Wallace to. Visit Pope,
Italian Communist
ROME, Oct 30-(;P)-Henry A.
Wallace arrived from Athens to
night and said he hoped ito see
leading Italian politicians includ
ing Palmiro Togliatti, the com
munist. The former vice president, who
is visiting Europe as a reporter,
will see Pope Pius XII tomorrow.
Weather
Max
Salem 58
Portland . 55
San Francisco 64
Chicago 8
Nw Vork 54
Min.
Irecip.
M
.18
.00
trace
- .43
50
SO
81
82
Willamette river 2.7 feet.
FORECAST from U.S. Weather bu
reau, McNary -field, Salem): Cloudy
today and tonight with Intermittent
light rains. High temperature today
55, Jow tonight 50.
II I
Typhoon Sinks
Ship in Pacific;
Nears Manila
MANILA, Friday, Oct. 31.HP)
A violent typhoon spread destruc
tion across six central Philippine
islands today, sank one ship and
was expected to rake Manila with
65-mile winds.
Two other ships were beached
by mountanif'iis eas, two Ameri
can vessels in the storm zone were
unreported but possibly safe, and
the ci'tites of Tacloban and Mas
bate southeast of Manila were
hard hit.
The Philippine air lines oper- ( buyers and w ith a minimum of risk ! always re.-ulted in the destruction
ator at Masbate. city of 24.000 , tQ the investment bankers. j of the nation that permitted this
population 230 miles southeast of Named as defendants were: crime against nature..
Manila, messaged damage was ! Morgan Stanley Si Co.; Kuhn ! "The south stands for segrega
high there, gave no hint of cas- Loeb & Co.: Eastman, Dillon & tion and will continue to practice
'Watties and added "send relief." j Co.; Kidder. Peabody & Co ; Gold- it regardless."
"Relief agencies were placed on , man, Sachs & Co.: Lehman Bros., I . .
an "on call" alert. " I Smith, Barney & Co.; Globe, For-:
Lykcs Brothers, operators of the ! gan & Co.; White Weld & Co.;j STORM WARNING ON COAST
7,196-ton Liberty ship Amelia ! Drexel & Co.; The First Boston SAN FRANCISCO, Oct. 30-(VP
Earhart, said she was agrgand on Corp.; Dillon, Read & Co.; Blyth ' The weather bureau tonight issued
Mactan shoal near Cebu. (The & Co., Inc.; Harriman Ripley &:a southeast storm warning until
vessel, operating out of New Or-'Co.. Inc.; Stone & Webster Securi- 8 p.m. Friday from Cape Mendo
leans, normally carries a crew of ties Corp.; Harris, Hall & Co.; and cino northward to the mouth of the
39. i Union Securities Corp. ' Columbia river.
Oath of High Office Taken at Hushed Rites
iSt!
)
. ft ... T . ., "; f '
V
V
r k.j . tav
the top, wherein Speaker of the House John Hall (left), with Former Gov. Jay Bowerman as wearing.
In officer, took his oath of office. At left below. Governor Hall Is shown nhig his Mtk.l office. I do
aoleranly swear that I will uphold the constitution of the United Slate and the constitution of the State
of Oregon and the Laws thereof,
right are Hall and hfc wife In a
house took his oath, in the executive office. (Photos by uon vim.
new york, Oct. 3(M)-The
government laid monopoly charges
today against n ot wjh Mreet s
leading banking firms in a civil
suit described by Attorney Gen
eral Tom Clark as "one of the larg
est and most important in the his
tory of the anti-trust laws."
The financial district, veteran
of many battles with regulatory
and investigating groups, coun
tered with a series of denials and
dug in for a show-down fight.
"If they want a fight," aid John
M. Hancock, partner of" Lehman
Bro?.. a firm named in the suit,
"we'll give it to them."
"My guess," he added, "is that
it will be a dirty fight." '
Theuit, filed by the department
of justice in federal district court
for southern New York, specific
ally accused the 17 internationally
known investment-banking firms
with conspiring to monopolize the JACKSON, Miss.. Oct. 30 (.41 -handling
of new issues of ; secur- The south will continue to prac
ities. j tice racial segregation regardless
Some of the allexed practices injof a recommendation by a pr-i-which
the bankers are accused of 1 dential committee that it be abol
conspii ing include: i acting Governor Oscar
. .. . ... ; Wolfe of Mississippi deviated to-
Ehmination of competition among ' , KK
themselves and among other in-"i
among
vestment bankers in the purchase
and distribution of new securities.
Influence and control over the
management and financial activi
ties of companies raising money
by issuing securities.
Concentration of the new securi
ties business in a single market
(New York) in which sales are
made to large purchasers oi securir
ties on terms favorable to such
X
1
ruit Af hashed ceremonies,
and that I wilt raitMuily discnarge
picture taken at the spot where two
vyi j r- . ( j :'
n o I w x j
Tt'aw at '
:-JJs - f
I)
:' .; -
MIS
sase
-KLAMATH FALLS, Ore, Oct. SfX-Orefoa'a gorr
nor, secretary of state, senate president, and their pilot wei
found dead today on a crash
out on pine bough litters along a path hacked through tba
forest a few hours before Speaker of the House John Hall at
Salem was sworn in as the state's new chief executive.
The wreckage of the most tragic plane crash in Oregon
history was reached this morning at the base of a cliff iat
which the private plane ploughed on a hunting trip Tuesday,
night.
Three bodies lay in the unbumed wreckage, below tb
South to Retain
Segregation,
Governor Savs
f.
In a prepared statement issued
in response to a newsman's re
quest for comment on the com
mittee's proposal yesterday, Wolfe
said:
"AH forms of human relation
ship and contracts cannot be reg
ulated by law. History shows that
where any nation has not practic
ed segregation of races, but al-
! lowed miscegenation and amalga-
mation of races, this custom has
the start of which Is pictured at
ine hiih
minutes before the speaker of the
siaiesman aian p..v..-i.u..,
scarred bntte and were borne
timbered cliff In Green valley.
about 70 miles east of here near
the California border. The fourth
was thrown clear. -
The dead are Gov. Earl Snell,
52; State Senate President liar
shall Cornett, 49. next in line of
succession for the governorship;
State Funeral Monday
A state funeral will be be 14
In the htuit af repreaeataUvee
at the lUUhMM at
Menday far Gev. Earl Snell.
Secretary mt State Brt H
Farrell. Jr asWI SeaaU President
Marshall Ceraett. It waa ast
nenneed ay the executive effW
last night. The belies wilt net
lie la state. Other details are
be annaMKed later. Bodies af
the geverae-r aad secretary mt
state were breoght frvaa Klaaa
alh Falls via bears aader palle
escort, going threugh Salem ea
rente to PerUaad early today.
The body ef tbe senate president
will be breagbt freaa Klamath
Falls to Salem far Maaday's
rites,- en rente to tatermeat at
his birthplace In Keotacky.
Secretary of State Rckbert S. Far
rell, Jr, 41; and Cliff Hogue. U
a Klamath Falls p&t of many
years' experience. '..;'
A convoy of state police escort
ed the stretchers through the pin
and cedar stands of the roadless,
snow - patched wilderness, be
hind a trail opened for them by
axe-bearing rescuers. ,
From the main search camp
green forest service trucks csr-
ried the bodies through woods ti
the Dog Lake guard station, and
transferred to ambulances for tha
trip here.
Maison Leads Certege
A somber crowd, headed by
state officials, met the red ambu
lance as it drove .up to the mor
tuary here behind a convoy of
six state police cars. State Polica -Supt.
H. G. Maison, who cstna
here from Salem, led the cortege.
The bodies of Cornett and
Hogue were left here, their hexoa
city. Mrs. Cornett said her hus
band would be buried in his na
tal town. Burning Springs. Ky.
lA hearse sent from a Irt!and
mortuary took the governor a and
the secretary of state s bodies on
to Portland..
Searchers'' eame across tha
wreckage this morning after a
night - long hunt in the rain
drenched, rugged country a brut
three miles west of Hoz Lake.
Gregory Tainter, one of. the fliere
who first sighted - the crashed
plane, and Chet Ellis, both at
Lakeview, were erst on
scene. . .
10 Men la Party
The 100 - man searching party ,
composed of foresters, stte po
lice, coast guardsmen, army, aca
woodsmen, placed the bodies oo
Improvised litters ot pine bough
and blankets.
The plane crash occurred whila'
a missing Pan American World
Airways plane with 13 aboard
was still being sought in Alaska
and a United Air Lines plana
crash which killed 32 In, Utah waa
being investigated.
Just before the fatal plane trip,
a reporter asked Governor Snsll
if he were -not afraid of flying.
Governor Snell raised his right
hand, and joked: -Myjmark isn't
up yet
The governor's plane smashed
into the butte Tuesday night, en
route from here to the Warner
valley for a morning of goose and
duck hunting; but not until Wed
nesday morning was it reported
missing.
Rancher' Tells News
Mrs. Cornett. with whom tha
party had dined here before tak
ing off, assumed the plane had
reached its destination. Oscar Kit
tredge, the Warner valley rancher
who was expecting the group,' as
sumed it had not yet left.
A check next morning disclosed
that the- state's chief leaders were
missing in the isolated, hill-pocked
country, scattered with jack
pines and Juniper.
A telephone call from an iso
lated cattleman, George Hill., who
said he had heard a plane in trou
ble, ; led , to discovery of tha
crash:
(Additional details on pagb 10)
RENT CONTROL LIFTED
WASHINGTON, Oct 30 -Giy
Housing Expediter Frank Creedca
today announced the removal ot
rent ceilings from the San Ao
gelo, Texv area. .
V