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NINETY -SEVENTH YEAH
10 PAGES
The Oregon Statesman, Salem. Oregon, Tuesday. January 13. 1948 Price 5c
No. 249
Detroit
M toy IFOffliraft C0tr
Fasts Again
On
Asks Cut
o o o
President
Slate
CRJ
SCEHjjQB
When Harold E. SUutn elected
not to become a candidate for Jte
U. S. aenate in 1948 and Instead to
go Into the presidential contest
a a -free lance." there were
many politicians who shook their
heads over his decision. He would
be lost to the public eye and soon
forgotten, they said. Better for
him to take a seat in the senate
where the office wduld lend wings
to his words.
Events have not fulfilled the
predictions of these wiseacres.
Statsen is quite In the public eye
and has been for many months.
Me is moving about with growing
sureness of foot. Alone among the
candidates he has moved freely
and expressed himself frankly in
11 sorts of situations: forums,
press conferences, testimony be
fore a senate committee. At the
moment his name gets into head
lines because of bis charges of
speculation by government insid
ers; but he has made progress on
more fundamental issuer also.
While Governor Dewey sits at
Albany and avoids most of the
subjects of national controversy
Stassen wades into them and of
ten comes up with a fresh, original
viewpoint. It is true that Dewey
berated the Truman administra
tion for its part in exciting infla
tion, in his message to the New
York legislature, but that was
quite palpably partisan. Stassen
has in his speeches been trying to
(Continued on editorial page)
Mishap Fatal
To Salem Baby
Probed Here
City police today were investi
gating Salem's first fatal traffic
accident of 1948. which claimed
the life of Judy Ann Hakanson.
2-year-old daughter of Mr. and
Mrs. Leonard H. Hakannon. 1S95
N. Liberty st The child died in a
local hospital at 8 p. m. Sunday
from injuries suffered in an auto-"trut-k
collision an hour earlier.
The girl suffered a fractured
skull and numerous other injuries
when a car driven by her father
smashed into the rear of a parked
logging truck at Soulh Commercial
and Iowa streets. Also seriously
Injured was her sister. Linda, one
year old, who was thrown out of
the car by the impact. Linda is in
Salem General hospital with 10
fractured ribs and face cuts. Hos
pital authorities said Monday her
condition was "fair.
Hakanson and his wife were also
injured, but were dismissed from
the hospital after treatment. Hak
anson told investigating officers he
was driving north on Commercial
street' and did not see the parked
truck in time to avoid hitting it.
Owner of the truck is Francis R.
Toler, Albany route 1.
Tuneral services will be held
Thursday. January IS. at 1:30
p. nr. at the Clough-Barrick cha
pel, the Rev. M. A. Getrendaner
officiating.
Weather
Max. Mm. Pravip.
lalM 4S 11 .S
rortland 4 3 00
Kan Francisco .. 44 00
Chicago M S3 trac
Naw York 17 25 04
Willamrtt river 1J 4 fat. falling
TO RECAST from US ainr bu
reau. McNarv timid. Salami fair to
day becoming ctovdr tonlfht. Warm
er tonight. High today SO. low tonight
IS
Animal Crackers
WARREN GOODRICH
"We, if reduced m right
barf J gvis orjr week was stick-
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ATMS $V
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Rates to Stay
To Provide for
Grooving Needs
City Manager J. L. Franzen
Monday advised against lower
water rates for Salem and showed
the city council an $806,383 blue
print tor water department proj
ects he said are needed as rapidly
as the work can be accomplished.
His report accepted by the city
council at city hall last night was
a reply to Alderman David O'
Hara's suggestion that water de
partment surplus funds might jus
tify reduced water rates.
Franzen said 17 projects needed
this year would require $94,532
more than the total available wat
er department cash of $571,830
plus an estimated $140,000 of wat
er department earned income ex
pected this year exclusive of bond
retirement money.
New Reservoirs Urged
Chief projects recommended by
the city manager are a $450,000
new reservoir tank with 20,000.
000 gallon capacity, an additional
1.000,000 gallon reservoir unit on
Candalaria Heights (estimated at
$30,000). nearly a mile of 24-inch
water pipe from 21st and Mill to
24th and Center streets and small
er pipe line extensions In various
city areas including the new Ma
p let on addition, expected to total
another 2 't miles in length.
Franzen said present Salem re
servoir capacity of 10.600.000 gal
lons is less than one day's supply
and asserted six days' supply is
considered minimum safe storage.
He said he doubted the large new
reservoir could be completed this
year.
Maseaaa Approved
In another development before
the city council, alderman agreed
the Bush home on Bush's pasture,
called by State Archivist David C.
Duniway "a beautiful example of
1870 architecture and furnishings."
will become a city museum when
the city eventually gains control
of the building.
Duniway said the Salem Art
association, with assurance the city
will preserve the building, would
buy and store the furnishing until
the house passes to city control
along with the "pasture" already
acquired for city park purposes.
Steps were taken by the coun
cil to ease zoning code restrictions
following requests by A. W. John
son for special permission to add
an apartment to a zone I resi
dential house at 744 N. Capitol st.,
and by Leo Henderson to exceed
marquee size restrictions for the
State theatre. City Attorney Chris
Kowitz was instructed to draft
zone code amendments liberalizing
small apartment use in zone I
and marquee sizes.
Zeae Hearlags Set
Public hearing was set for Janu
ary 26 on a zone change to re
stricted business class for medical
dental office purposes of Center
street property near Salem Gen
eral hospital.
J. S. Bu.b. seeking business
zoning for a locker plant at Maple
and Locust streets, was only dis
senter at a hearing on recom
mended zoning of recently an
nexed areas. The bill was passed
on to second reading.
Six street Improvement assess
ment ordinances were passed.
Among new legislation introduced
and passed n to possible final
action at the next meeting were
bills establishing city procedure
for elections, referendums and in
itiatives (an adaption ef state pro
cedure which has been generally
followed heretofore) and a bill
to control use of fumigants poison
ous to humans.
(Council news also on page 2.)
Old Theatre
Hit by Fire
SAVANNAH. Ga . Jan. 12 -VP)
Fire breaking out in the auditori
um ceiling of the historic Savan
nah theatre tonight drove about
200 persons into the street from
the late evening motion picture
show.
There was no panic and no in
juries were reported in the hasty
evacuation of the building.
The fire, of undetermined or
igin, threw a heavy pall of smoke
over downtown Savannah and
brought out all the fire fighting
equipment In a general alarm.
The theatre, oldest in contin
uous use in the United States, was
designed by the British architect
William Jay and opened Dec 4,
1818.
IWA TO ASK RAISE
PORTLAND. Jan. 12 - UP) - An
across-the-board wage increase of
32 'a cents an hour, with an extra
cents for a welfare fund, will
be asked by the CIO International
Woodworkers of America in nego
tiations on new contracts opening
Aprin 1. The present minimum in
most IWA contracts is $1,32 Vi an
hour
46 Rescued From Ship
Burning in Mid-Ocean
NEW YORK, Jan. 12 -iJPy- Two rescue ships, battling danger
ously high seas, tonight rescued all 46 persons who abandoned the
flaming Joseph V. Connolly, army "funeral ship," in the North At
lantic early today.
The survivors 45 crewmen and one passenger were in life
boats about nine hours in high seas whipped by a northeast gale
Reds Release
4
V
BEtLTN. Jaa 12 -JPy- Dr. Her
aaa B. Wells, president ef In
diana aiverslty, whe was ar
rested and held for three boars
by Seviet occupation aatherities
here. (Details en page 2.)
Aid Estimates
Not f Absolute'
To Vandenberg
WASHINGTON. Jan. 12.-(AV
Chairman Vandeberg (R-Mich)
hinted strongly today that the sen
ate foreign relations committee
will not be bound by the $6,800,
000,000 figure submitted by the
Truman administration as the in
itial cost of the "Marshall plan."
Noting that there are many dif
ferences in estimates prepared by
the state department and those
made by the Harriman committee
which investigated this country's
ability to supply Europe's needs,
Vandenberg said:
"Does not the whole comparison
clearly indicate that there is noth
ing sacrosanct about the figure of
$6,800,000,000?"
Chief backers of the European
recovery program expressed will
ingness to meet republican de
mands for "businesslike" opera
tion of the program but stood firm
on their insistence that the state
department have over-all super
vision. Keizer Approves
'48 Sc hool Budget
KEIZER. Jan. 12.-(Special)-Vo-ters
of the Keizer school district
Monday night balloted unanimous
ly to approve the district's 1948
school budget.
A small turnout of voters ap
proved the $116,955 tentative bud
get which is subject to review and
equalization by the county school
ooard.
Building
" ''''".'':'.: ' , , . . ' ' t ' '-'I
f , .- i ' ; " ' 'A ' ' ' 1
This 246 by 9t feet warebease new galag ap in a sew industrial area east ef the Southern Pacific tracks
near East Heyt street Is ene ef the properties la a 209-acre southeast suburban area, far which aa
annexation petHlaa was filed with the Salem city council Monday nigbt by ewners ef approximately
76 per eeat af the area. IL C Walling Is ewner ef the new warehouse, which will bouse Walling Sand
and Gravel Co. offices and a Consolidated Freightways termini L The area also extends a mile south
of present city limits from west of 12th street as far east as the Southern Pacific tracks and includes
large new subdivisions of Lawrence Anderson and of Ronald E. Jones aad Rich Kelmsnn. The city
council last night agreed to extend water service to the area pending annexation. (Statesmaa
photo by Don Dill, staff photographer.)
before being picked up.
The army said 27 of the men
were taken aboard the Union Vic
tory and 19 aboard the Gen. R. E.
Callan, another army transport.
Three of the survivors of the
Union Victory were believed ser
iously injured, the coast guard
said.
Both the General Callan and
the Union Victory were bound for
Europe before the rescue's but
were directed by the coast guard
to proceed to Halifax, Newfound
land, with the Connolly's sur
vivors. The Connolly, which inaugurat
ed the return of American war
dead from Europe last October,
was reported by the coast guard
to be a total loss. It said the ship
had heeled over on its side and
was burning fiercely.
KJndley field, Bermuda, which
sent four planes to the scene of
the disaster 900 miles east of New
York to aid in the search for the
lifeboats, said the plane had de
scribed the 40-mile gale and
mountainous seas hampering the
rescue ships.
The 7,176-ton Connolly left
here last Thursday en route to
Antwerp with 6.445 empty caskets
to return additional bodies of
American war dead from Europe.
Police Chase
Nabs Suspect
For Lebanon
BEND. Ore., Jan. 12 -&)- Leon
ard J. Michelson, 25. of Bly, Ore.,
was captured today by state police
officers in the Squaw creek area
north of Sisters where he hid after
smashing through a road block
and shotgun fire five hours earlier.
State Police Sgt. L. L. Hirtzel
I said Michelson was wanted in
i Lebanon for an attempted rob
bery of the Smith jewelry store
last night and also was held for
Multnomah county authorities on
a stolerj car warrant.
Sgt. Hirtzel said the Bly resi
dent had been seen by the Le
banon jeweler and fled without
taking anything after breaking the
store window.
Earlier today, the 1947 Kaiser
sedan smashed through a road
block just west of Sisters. Police
opened fire with shotguns. They
located the abandoned car near
Sisters several hours later and
traced Michelson to the Squaw
Creek area.
Police said Michelson did not
resist arrest. He was unarmed.
The automobile was reported
stolen in Portland over the week
end.
Senate Would Ban
Commemorative Coins
WASHINGTON, Jan. 12 -P-The
yenate voted today to end the
practice of issuing commemor
ative coins and to authorize a
medal plan instead. The bill goes
to the house.
The senate banking committee
rejected seven bills for special
coins, including one to commem
orate the Oregon Trail centennial.
Rises in Petitioning Area
a.
New Rail Spur
Asked by Cold
Storage Firm
A move to enable Terminal Ice
& Cold Storage Co. to become the
largest refrigerated storage plant
on the west coast was underway
Monday night when Salem's city
council was asked to approve a
franchise for a new spur track at
Front and D streets.
The firm which has a storage
plant at 990 N. Front st. was re
ported ready to expand its storage
space by 50 per cent to more
than 1,500,000 cubic feet if it
can be served by a spur track
which would cross Front and D
streets in curving from present
railroad tracks on Front street to
the Terminal Ice property be
tween Front and Commercial
streets and north of D street
Company officials did not es
timate value of the improvement
but it was considered genera?
as a project which would cost well
over $100,000.
Endorsement for the Terminal
Ice building proposal was voiced
earlier Monday by the industries
committee of Salem Chamber of
Commerce headed by William H.
Baillie, who said the enlargement
of cold storage space is a Salem
need.
Alderman James Nicholson sub
mitted an ordinance bill which
would 'enfranchise Oregon Elec
tric railway for 20 years to oper
ate the spur track, provided the
ice company will lay a five-foot
paved sidewalk along D street be
tween the spur tracks and the
street, pave sidewalks at the
southeast corner of Front and
D street where the track would
cut off a corner of Terminal Ice
property and allow ho truck load
ing on D street.
The franchise bill was given
initial reading and will come up
for possible final action at the next
council meeting on January 26.
In a letter to the council Low
ell E. Kern, executive vice pre
sident of Terminal Ice, said the
project would be a two-story 187
by 144 foot building along D street
behind the present storage plant,
of reinforced concrete, with 550,
000 cubic fet of storage space, in
the block of industrial zone pro
perty the company now owns.
"It is imperative the Willamette
valley area has available addi
tional freezing and cold storage
space to take care of crops now
in the ground," Kern's letter stat
ed, r
Grounded Ship
Not in Danger
SEWARD, Alaska, Jan. 12.-4JP)-Eleven
seamen whose small Alas
ka steamer, the Aleutian Mail, ran
aground this morning on the
southwest tip of Unimak island
were reported tonight to be in "no
immediate danger." and awaiting
rescue early Tuesday by the coast
guard cutter Cedar.
A distress call radioed by the
craft's owner and Captain Jesse H.
Petrich of Seward, said the 263
ton, wooden-hulled Aleutian Mail
struck two miles northwest of
Arch Point on Unimak, first is
land of the Aleutian chain.
The steamer radioed the Ketchi
kan coast guard station tonight
that seas have quieted to a "dead
calm," but there were indications
the weather would worsen during
the night.
For Funds
WASHINGTON. Jan. 12.-(yP)-A
$156,767,100 development program
for the Columbia basin area was
proposed today in federal budget
requests submitted to congress.
The outlay for 1949 included
$52,928,100 for rivers and harbor
work in Oregon, Washington and
Idaho, $36,275,000 for the Bonne
v i 1 1 e administration, $48,000,000
for the Columbia basin reclama
tion project in Washington and
$19,564,100 for other reclamation
projects in the Pacific northwest.
The biggest single appropriation
asked was the $48,000,000 for the
Columbia basin reclamation work
- - a project to bring 216,000 acres
of land under irrigation by 1952
and expand power facilities. Esti
mated expenditures in the current
12-month period were $36,470,968
for the project.
Next in size was the Bonneville
administration, which asked $36,
275,000 for 1949, and $2,200,000 in
supplemental funds for the re
mainder of this year. These were
asked for completion of 115 addi
tional miles of transmission lines
and five new substations, plus
work to be carried on for 1,519 ad
ditional miles of transmission lines
and accompanying substations to
be completed in future years.
The rivers and harbors proposed
appropriation listed $30,000,000 for
construction of M c N a r y dam,
which army engineers hope to
complete by 1954.
Also in the rivers-harbors bill
was $14,155,000 for the Willamette
valley flood control project, in
cluding Dorena reservoir, $3,500,-
000; Lookout Point reservoir, $7,
000,000; Detroit reservoir, $3,500,
000; Willamette river bank protec
tion, $500,000; Fern Ridge reser
voir, $155,000: Pudding river, $29,
000. (Additional details on page 2)
Stassen Flays
Pauley's Right
To Army Post
WASHINGTON, Jan. Z.-AJP)-Edwin
W. Pauley's right to keep
his army department post after
making nearly $1,000,000 in com
modity speculation was challenged
by- Harold E.' Stassen today in an
open letter to President Truman.
The republican presidential as
pirant dictated his new blast
against Pauley, special assistant to
Secretary of the Army Royall, by
telephone from Sheridan, Wyo., to
his Washington office. It said:
"Now that Mr. Pauley has ad
mitted the extensive nature of his
operations. I respectfully ask this
question of the president. I ask it
in particular view of the urgent
need for leveling off food prices
and of the anticipated heavy gov
ernmental purchases of food in
1948.
"The question is this:
"Does a man who has admitted
under investigation that he made
approximately a million dollars
($932,703 to be exact) in personal
profit, by speculating since the
war in increased prices of food
and commodities, belong in the
position of assistant to the secre
tary of the army for procurement
and industrial mobilization?"
Pauley, in a telegram to Stassen
last night, denied that his trading
was based on "inside information"
and accused Stassen of making
"false statements."
Land Vehicle
At 1,019 mph
Passes Sound
MUROC AIR BASE, Calif.. Jan.
12.-;P)-The sonic wall, which the
fastest airplanes for months have
been assaulting, has been effect
ively battered down by an unman
ned land vehicle which reached
1,019 miles an hour, Northrop air
craft engineers announced today.
The device, a 1,500 pound metal
rocket - propelled sled, traversed
2,000 feet of standard-gauge rail
road track in less than two sec
onds, then, reaching the end of the
line, bounced off across the desert.
Northrop Project Engineer S. E.
Weaver disclosed that the first
high speed test was made Sept. 20.
1946, and that the 1,019 mile an
hour run was made March 7, 1947.
The tests have been conducted at
the air base here under utmost se
crecy. The prime purpose of the exper
iment, Weaver said, is to deter
mine the practicality of an out
door wind tunnel which would re
verse the process of the conven
tional tunnel, in tunnels now in
use, air is rammed past a suspend
ed model. Under the new system,
the model plane would be pushed
through free air at supersonic
speeds and the effects observed.
AIR FARES SLICED
SEATTLE, Jan. 12 JP- Fare
reductions up to 31 per cent to
take effect immediately were an
nounced today by West Coast
Airlines, operating in Washington
and Oregon.
PS.
i " I , '
i ' i ' ( "'' '
NEW DELHI. India. Tuesday, Jan.
13. (JP) Mohandas K. Gandhi,
who announced today he was
undertaking immediately a fast
in an effort to restore peace
among the Hindu, Sikh and Mo
hammedan religious communi
ties in India. The statement by
the aging Hindu apostle of non
violence made clear Gandhi's
undertaking that many of his
disciples., opposed., his . hunger
strike. Some followers said they
feared that if Gandhi died from
any cause while fasting, the non
moslem communities of India
would take frightful vengence
upon tho Moslems.
Salmon-Saving
Plan in Lower
Valleys Asked
WASHINGTON, Jan. 12 -()-The
government today proposed a
$13,000,000 salmon preservation
program on the Columbia river
and its tributaries below McNary
dam.
A $1,450,000 appropriation was
listed in tho rivers and harbors
bill to be transferred to the fish
and wildlife service to start the
program, which would be under
taken in cooperation with Oregon
arid Washington.
As planned, the program would
take five years in which time an
attempt would be made to estab
lish salmon runs in the lower Co
lumbia and tributaries. This Is
looking forward to the day when
high dams on the tipper Columbia
and Snake might block salmon
runs.
The aims of the program would
be to eliminate stream pollution,
to clear out beaver dams, log jams
and other obstructions, and to
transplant runs to the lower river.
Meat Ceilings
Asked; Morse
Offers Plan
WASHINGTON, Jan. 12 H7P
Secretary of Agriculture Ander
son asked congress today for pow
er to clamp wholesale price ceil
ings on meat, and added:
We will want both price con
trols and rationing on meat and
we will want them before this
spring is over."
Anderson, appearing before the
senate Dansung committee, said,
however, he didn't think thAr
would be a need for retail price
ceilings on meat.
He said that he thought the
time for rationing would come
"when meat has virtually disap
peared from the counters."
The secretary testified in fa
vor of .an administration bill
which would empower the gov
ernment to impose "selective"
controls on wages and prices if
other methods fail to control in
flation. At the same time Senator Morse
(R-Ore.) introduced a bill pro
viding for an economic stabiliza
tion coordinator to fight high
prices by emergency measures
short of price control and rar
tioning.
And the justice department or
dered a federal grand Jury inves
tigation of the food industry
"especially into the production,
distribution and high price of
milk" in the SL Louis, Mo.,
area.
'Wo Didn't Want
So they didn't They saw
Doakes at home, at play, at
Joe Doakeses. And they tell all
The Russian Journal
"They" are the New York
team of Writer John Steinbeck and Photographer Robert
Capxz, and their 15-part story in word and pictures will start
in
Your Home Newspaper TOMORROW ! j
v Orr flonCSaOlulrsman
i . -Telephone;
9101 ,
Of Belks
I.
WASHINGTON, Jan. 12 -VP-President
Truman sent f congress
today a $39,669,000,000 budget, a'
record-smasher for peacetime, and
republican leaders reacted swiftly
with cries of "extravagance.! . i ;
In asking this sum to run tho
government for the fiscal year
beginning July 1, Mr. Truman.,
said it is needed to (l);head off
"totalitarian rule" in western .Eu
rope (2) maintain "a modern and
balanced armed force" for Amer
ica's security and (3) strengthen
"the foundations of our democracy
and the happiness of our people.
He also forecast record-break-
WASHTNGTON, Jan.' 12
la proposing an $11,000,600,
666 fund to maintain armed '
forces of 1,423.606 men next :
fiscal year and to help revamp :
the nation's defenses,? President -Truman
today warned that; if ;
Europe goes red the costs will ?
soar. (Additional details on page
. .' U- j f
ing surpluses if congress does! not
cut the nation's overV tax bill. '
Senator Taft (R-Ohio) called
the president's spending recom
mendations "too high Senator
Ferguson (R-Mich.) accused! Mr.
Truman of "bad faith." Democrats
largely went along with the pre
sident. .
Huge Surpluses Seen j -
The total Is about $2,000,000,000
larger than what Mr. Truman
asked a year ago for! the fiscal
year ending this June $0. f j .
"The plain fact is that our bud
get must remain high, Mr.! Tru
man wrote in his message to (con
gress, "until we have met our in- .
ternational responsibilities j and
can see-tho way clear to a peace
ful and prosperous world. J
Turning to the expected I sur
pluses, he declared the treasury
should be in the black by) $7,
500,000,000 June 30 this year and
by an additional $4,800,00,000 on
June 30, 1949. j !
'Mr. Truman urged that thi$ mo
ney should bo used to reduce the
public debt, rather 'than cut the
total tax rate. . Yl-t ' . ! -Tax
Cot Bill Readied :
Republicans, undeterred by Mr.
Truman's familiar argument,! went
ahead with their plans to push a
$5,600,000,000 income) tax cutting
bill. ; j ' - s.
The president Is counting feder-.
al revenues next year of i $44,
477,000,000. For this year he' esti
mated receipts would hit a peace
time record of $45,210,000,000.
Use of the surpluses this year
and next to slash the debt would
bring it down to $246,200,000,000
by mid-1949. To make that pos
sible, along with a flat $40 tax
reduction for every taxpayer and
dependent, Mr. Truman, j again
urged congress to hoist corporation
taxes by $3,200,000,000, the amount
he estimated the $40, would cost.
UMT Included j j j
There are items in the budget
for universal military training,
health insurance, greater help for
schools, a long-range housing pro
gram, enlargement of atomic
plants, improvements In "strate
gic" Alaska, expansion of the So
cial Security program.
The budget would be split
among these broad fields: .
National defense $11,025,000,000,
an increase of $279,000,000 over
the present year; international af
fairs, including the Marshall plan,
$7,009,000,000, up $1,476,000,000;
veterans' care and benefits $6,102,
000,000, down $530,000,000;! social
security, health and welfare $2,
028,000,000. up $68,000,000;! hous
ing and community facilities: $38,
000,000, down $75,00,000; educa
tion and general research i $387,
000,000, up 310,000,000; agricul- .
ture and agricultural resources
$906,000,000, up $292,000,000; na
tural . resources $1,626,000,000, up ,
$447,000,000; transportation and I
communication $1,646,000,000, up j
$83,000,000; finance, commerce I
and industry $190,000,000, down '
$182,000,000; labor, ! $116,000,000, I
up $19.00,000; general government '
$1,157,000,000, down; $316,000,000; j
interest on the national debt $5,- '
250,000,000. up $50,090,000; tax re
funds $1,990,000,000, down $59,-;
000,000 fe. reserves $200,000,000, up j
sO. 00 0,000. it. I
to Sec Stalin!'
! j ' .
Russia's Mr. and Mrs. Joe
work, along with all the little
about it in the epic series.
Herald-Tribime'sloutstdndina
i