o o ;otZ3Lzi. ooo oizino on . odgo o; 'end o cionj c Weather Max. M ea Sateaa , , ' ; , , Portland Sin Frsnclac S3 jPO (U 5 Chicago Mow York , M WlUanwttt. rtvor -S.S faat. .t . FORECAST (from US. weather bu rsa u. MeNary Maid, Balom): Fair today and tonight. High temporatur. todar Boar S2; tow tonight U. Conditions -colicnt for all (arming activities. NQIETY-QGHTB YEAR 14 PAGES Xha Oregon Clotman, Sdam, Oregon. Tuasdar July 23 1813 Trie Sc No. 1C3 OTP . i a y in v ill II 11 I r i I iiTiiii i .icacv i "v ii r l .riMf v innv i One day last week I went with representative ; of the Farmers Home administration on a tour of Marion county farms. We called at four farms where the farmer is acquiring land by means of a loan under the Bankhead-Jones act (to assist tenants to buy land). The farms visited were: one in the- Santiam bottom just above Jefferson, another in the Waldo hills district, another in the Cen tral Howell prairie section, and a fourth just west of Woodburn. The route gave one a fine view of Mar ion county agriculture at its busy summer season. The big chores now are putting up hay and pick ing caneberries. There is cultivat ing to do on late crops and we saw several fields all white with freshly covered lime or land-plaster. Old Marion county is doing pretty well with its farm produc tion this year, despite the back ward season. The hay crop is heavy and most all of it is being saved. Strawberries were a big and prof itable crop. There is a fine yield of caneberries i (boysenberries, lo ganberries, youngberies, raspber ries) though prices are not quite what the growers expected. Not so many fields of small grain this year because 'the wet fall, winter and spring prevented much of the planting. The Valley is no longer a factor in wheat production how ever. The-corn acreage apparent ly has been increased to take up the slack in oats and vetch and (Continued on Editorial Page) Stoclis Plunge In Pessimistic Heavy Trading NEW YORK. July 19 -4JPh- A plunging stock- market wiped out an estimated $2,100,000,000 in val ue today in last week's headlong downward drive. The break was the biggest since Nov. 6, 1946- More issues were traded than anytime in the exchange's history, 1.163 of a total of 1,410 stocks listed. The total volume of 2,- 560,000 shares was the highest since the current phase of the bull market started in -May. The break, which found leaders telling for $1 to $12 lower at times, posed ar big Wall Street question is the bull market over? Traders soUfht the answer In the war danger signals over Ber lin, the special session of congress which President Truman called to consider price -fixing to bring down the cost of living, and the widening spiral of wage and price advances. j Pessimism in Wall Street splashed over into other markets. Butter futures in Chicago broke nearly 2 cents a-pound. Egg fu tures were plumped down 1 cents a dozen in the heaviest tra-4 oing wis year. Chicago grains were generally lower with oats breaking sharply as the new crop arrived. Hogs, cattle and cotton showed mixed price trends. J ; (Additional details on page 12) State Salary Lists Studied Questionnaires being sent a large group ox private employers will be the basis of a study of state salary and wage schedules by the state civil service commission, it was announced Monday. These questionnaires will form part of a study on which to base recommendations to the 1949 legis lature in regard to a salary sched ule geared to present economic conditions. Director Robert Johnson of the civil service commission said con tacts will also be made with offi cials .of other states, along with data obtained through county courts and cities. Upon completion of the study and drafting of a new salary schedule, public hearings will be held. - ' . FLAMES HIT RICHMOND , RICHMOND, Ysu, July 19-WP)- A five-alarm nre in the downtown warehouse j area here tonight '"brought out! ISO firemen to battle the blaze which' gutted a four- story brick building and spread to two adjoinia structure Animz! Crackers By WAESEN GOODRICH - 9' ZyttU. bow Vuts moet Ebi'itgl it Ii Workers Picket Hejaring s 'I Amount of requested telephone rate increase was reduced by Pa cific- Telephone and Telegraph Co. Monday in a surprise move at the outset of a state public utilities Commission hearing on telephone rates at the Salem Chamber of Commerce hall. Opposition to the requested rate increase was expressed by several hanner-carrymg mem bers of the Association of 'Com munications Equipment Workers, a CIO union, at the building en trance. The surprise proposal was by Fletcher Rockwood, telephone company attorney, that the amount of $5,500,000 annual boost originally requested by PT&T and later upped to $6,060,000 had been reduced to $4,123,000. New Estimates Credited The attorney said the revised request of $4,123,000 was based on the most recent estimate of its intrastate revenue requirements. He added; the company would present a hew schedule of rates which would modify the rates previously! requested. Although Rockwood did not say what I the specific rate pro posals would be under the $4,123,- 000 annual estimate, he indicated the increases would be 75, 50 and 25 cents, respectively, for one, two and four-party residence ser vice instead of increases of $1, 75 cents' and 50 cents as origi nally requested. Rising Costs Emphasised Comparable changes would be made in other rates, Rockwood indicated, r and emphasized that the additional revenue was re quired to ope with increased wages, risirig material costs, plant expansion : and to place the com pany on a financial plane of sta- Intervening on the side of the utilities commission are the city of Eugene, represented by City Attorney John W. Pennington; the city of Portland, represented by Deputy City Attorneys Mar ion Rushing and A. W. Peterson, and Stanley Earl, executive sec retary of the Oregon CIO. Objection j Upheld Deputy Attorney General Rex Kimmell, j who is handling the legal phase of the case for the utilities - Commissioner, objected Monday X to introduction of cer tain testimony, and as a result Commissioner Flagg ruled that no figures or data based on com pany operations prior to the close of the previous rate hearing ap proximately a year ago would be considered in the current pro ceeding. In another ' important ruling Flagg held that operations of the company, both interstate and in trastate,! involving the Oregon setup, would be considered as an over-all matter and not be separated I or rates based solely on intrastate revenues. The last exhibit Monday show ed that telephone plant in service in Oregon totaled $79,605,000 on March 31 of this year compared with a total of $55,112,000 on Dec. 31, 1945 UaS-fjetght Reaches Iceland f i - REYKJAVIK, Iceland, July 19 (JpySlxieen U. S. air force F-80 jet planes landed at Keflavik air port near here today on a flight from Greenland., The sleek Shooting Stars are making ! the pioneer American transatlantic flight by Jet planes. Dayton, One of Observe Its 100 DAYTON, "July 19On of the oldest towns in OregonDayton wiH commemorate the 100th anni versary of its founding at "a cen tennial celebration next weekend. July 24 and 25. V Highlight of the anniversary fete will be the - presentation of the two-day Pioneer Buckeroo, spon sored by the Dayton Buckeroo as sociation, -with 'approximately $loo in cash ana trophies 10 De awarded! A parade will be fea tured Saturday morning with tro phies to be awarded winners in the parade contest and whisk erino judging. I The judging will take place at the buckeroo grounds at the close of the parade. Saturday night there will be a street dance, and on Saturday and Sunday after noons the buckeroo will be held. Gen. Joel Palmer, who crossed the plains on the overland trail with his family in 1248, founded Dayton on his donation land claim, and that of his son-in-law, Andrew Smith. The towa was named after Cuts Rate Bomi Pershing Fimeial Prp cession Moves to Cemetery T7 -.,aV. r m fir 1-D WASHINGTON, Dv C July It t i -J ' II John J. Pershiagrests on a Caisson drawn by six grey horses as eapitol (background) In Washington, D. C, and proceeds towards Wlrephote to Tne .t&tesmn.) Ford and Union lonenewlalli; Walkout Voted DETROIT, July 19 -VP)- Wal ter P. Reuther appealed directly to Henry Ford II today to help avert a strike of 116,000 Ford Motor Co. production employes. As a result. Ford agreed to resume negotiations with the CIO United Auto Workers. They were broken on July l. The company and the union announced they would hold both morning and afternoon sessions tomorrow! in renewed efforts to reach agreement on contract terms. Reuther acted after his UAW- CIO executive board unanimous ly authorized a walkout in 46 Ford plants across the nation. Tito to Remit On U.S. Claim WASHINGTON. July 1 -UP) Marshal Tito's Yugoslavia settled amicably a long dispute with the United States today in the wake of his split with the cominform. The Yugoslav deputy finance minister cane from Belgrade to sign an agreement to pay more than $17,000,000 in settlement of American wartime and postwar. claims. The United States in return will surrender to Tito some $47,- 000.000 of Yugoslav gold re serves held in this country since 1942. It also will unfreeze Yugo slav private assets amounting, to $10,000,000. V Included in the - sums Tito s communist regime agreed to pay within the next 45 days is com pensation for two United States army transport planes which Yugoslav fighters shot down two years ago. Oregon's Oldest Toivns, Will th Anniversary on July 24-25 the native city of Christopher Tay lor, who crossed the plains with the Palmers and accompanied them to their new home. : Palmer was born Feb. 4, 1810, in Elizabeth, Canada. In 1847 he was commissary general of the expe dition which , went into the upper county at the time of the Whitman massacre. Later he -was superin tendent of Indian affairs during the Civil war and major general of the Oregon militia. In 1862 be became speaker of the house of representatives and also was a state senator representing Yamhill county.1..:'-";. .:,-.,-;,-! t Palmer had a part In establish" ing the Barlow trail onan" earlier journey to the Oregon country in 1843. He was with a party, headed by Samuel K. Barlow, which blazed a trail in the foothills of Mt. Hood into the valley,- making an overland route bypassing the Columbia with its high freight rates..- ? r . " . -' - .The pioneer landmark remain ing in Dayton la the historic block ' r V -.Si A. A flag-draped casket containing Gen. Pershing Interred in Arlington WASHINGTON, July 19 -4JPy- Gen. John Pershing was laid to rest today, on the summit of a tree-shrouded slope, surrounded by the graves of men he com manded from xthe jungles of the Philippines to the borders of im perial Germany. A reverent hush fell over the generals, the cadets and duck pri vates standing at attention in Ar lington national cemetery; at the army's chief of chaplains. Ma j. Gen. Luther D. Miller, intoned the last words: The march of another soldier I fa " H i Kattr ar all fviirht-1 and ali i won, and he lies down to rest while awaiting the bugle's calL" "Black Jack" Pershing died last Thursday at the age of 87. Cairo Raided; Violation of Truce Charged CAIRO, Tuesday, July 20-(- A plane raided Cairo late last night, droppingone bomb which blasted Fouad street in the heart of Cairo. . There was no immediate report of the ; damage or whether there were any casualties. ' Earlier Israel charged Syria with widespread violation of the Pal estine truce today and an Israeli spokesman said "The Israeli army will consider itself at liberty to attack the Syrian army where ever they are. The tnice, ordered for last night by United Nations mediator Count Folke Bernadotte. war reported generally effective on the southern and central fronts. SAUCM PMCTFTTATION CrrMB SapC 1 . Jly Z) This Year Last Tear 36.93 Averse. 44.M ( - 37.43 house, located between Main and Ferry streets, on land donated by General Palmer as a city square. It was originally constructed at Grand! Ronde ' in 1855. General Palmer, who was appointed super Inte&dent of Indian affairs for the Territory, of Oregon by President Franklin Pierce, . purchased - the Grand; Rondereservation in Yam hill county forv $38,600 and In dians were placed there- regard less of the fears of the settlers, who built the stockade and block house on a high hill where troops were sent in 18,58. UL Phil Sheri dan commanded the troops in 1858 when the fort was known as Fort YamhllL f . "- v Permission was later granted by the department of the interior to move the block , house and'J. G. Lewis : and a group of Indians brought it to Dayton June 9, 1911. A year later it was dedicated as a monument to i General Palmer to be used as a museum of Indian relicsi : f - - i Mequeslt v.. . - . A - v J8& the body of General of the Armies the funeral procession leaves the Arlington national cemetery. ((A3) Soil-Breaking Today for New Retail Center Ground-breaking for a Sears, Roebuck Sc Co store) as main part of a $2,000,000 retail trading center near Capitol and Center streets is set for 11:30 a. m. today, On hand for the ceremony will be Gov. John Rail, Mayor R. L. Elfstrom, Manager Clay Coch ran of Salem Chamber of Com merce and Sears officials Includ ing Manager Gene Vandeneynde. .The store building will have 1 200-foot frontage on North Capitol street and extended 125 feet along Marion and Union streets. Re mainder of the block and part of an adjacent block will be devoted to parking space. Work already has begun on the two-block site for a market to.be operated by Elmer Berg. The L. H. Hoffman Construction Co.. Is general contractor for the entire project, which is being erected by Pacific Mutual Life Insurance Co. Blockade Shuts Berlin Plants BERLIN, JWr 19 JPh Ee-, nemic paralysis spread in Ber lin today. The number ef fac tories closed since the Russians clamped their blockade en the German capital reached almost WOO. American military govern ment experts said as many as 200.000 persons may be looking for work by the end ef this week. " In the American sector alone, 8V500 persons have been thrown nt of work by the closing ef 409' of 2,000 plants. The British Joined the Ameri cans today in flying coal to the city bnt their combined haul is net expected te match the ton nage supplied by rail for indus trial needs. 21 Slain in Riots; Togliatti Improves ROME. July 19-CrVThe death toll of riots following the attempt ed assassination of communist leader Palmiro Togliatti today rose to 21 as one policeman and two civilians died of wounds incurred In the fighting. j I Togliatti's condition was report ed steadily improving, j n i i i Superf orts ArriVe : - At English Fields SCAMPTON. England, July 19 JPy- Sixty American superfortress bombers were refueled at three RAF airfields In this area today and their crews were told to stand by for further orders.; ' ' " - The last two Dlanes due here on what has been officially labelled training mission" arrived to day from Goose Bay, Labrador. SMITH CHARGES LIBEL ' f ' WICHITA. Kas- July J9 -WV Tbe Rev. Gerald L. Smith filed a $1,000,000 libel suit! against the Wichita Beacon Publishing com pany today. He charged the news paper styled him a communist. i mm (SMiniSitr Caution Urged ByFiveJNfations THE HAGUE, The Netherlands, July 19 -iJPy- Leaders of five Western European nations here tonight viewed the Berlin crisis as "extremely grave" and advised utmost caution- in dealing with the Russians. ' . "This was disclosed by an auth oritative source at a meeting of the western European union to force a common defense linked with the armed might of America. Britain. France. The Nether lands, 3elgium and Luxembourg make up the union. The source, from one of the Benelux coun tries, said the representatives met for four hours tonight but reached no agreement on a course of action in the Berlin crisis.' Originally British Foreign Sec retary Ernest Bevin and French Foreign Minister Georges Bid ault were slated to discuss the Berlin crisis. They called In Premiers Paul Henri Spaak of Belgium and Pierre Dupont of Luxembourg, and Foreign Minister Baron Von Boetzelaer Van Oosterhout of the Nesterlands. ' All five form the western European permane . coun cil created more than two months ago. With economic matters slated to be out of the way by tomorrow the ministers were scheduled to get to the heart of their agenda .the straightening out of their 50 year military alliance and the possibility of basing it solidly on definite commitments of Ameri can military assistance. 25-Year-Olds May BeTlrst Draft-Called WASHINGTON, July I9-P- Men of 25 may be the first ones called in the peacetime draft. Mai. Gen. Lewis B. Hers hey dis closed that idea was under -consideration as he was sworn in to day as director of selective service under the law passed by the last congress. Hershey gave no details in his brief comment but the purpose of taking 25-year-olds first would be obvious they will soon be past the law's age limit. The actual decision on who will be called first has not been made yet, Hershey said at a news con ference after the ceremony. Actual drafting cannot start un til September 22. SAN FRANCISCO, July 19-ff) Sixth army headquarterssaid to-, night 18-year-old enlistees from Washington, Oregon, Montana, Idaho and Wyoming win be proc essed and classified at Fort Lewis, wash. July 21 is the opening day for enlistment of 18 year - old draft eugibles. Wallace; Party OpensJSession PHILADELPHIA, July 19, -VP) Henry A. - Wallace's third party pitched camp today and completed arrangements for its founding convention. The week-long Wallace exer cises get under way tomorrow with an executive session of the 74-meznber platform committee. Initial phase of preliminaries was a meeting by 50 members of the Civil Rights congress and the Committee for Democratic Rights to merge their groups and outline a program of action. FIRE HITS MINE HAILEY, Idaho, July 19 -VPy- A fire was .raging - uncontrolled late tonight at the Deepset level, 900-feet, of the triumph mine, 12 miles north of here, ! Mine Superintendent Af H. hoesnaker reported. No injuries had been reported, he said. Ifritman Readies in ned Dealing BUI for ReheUwits Congress WASHINGTON. July 19 -UPh President Truman will dump the whole issue of soaring prices in congress lap Monday at the op ening of the extra session, in a ready-made bilL- ; - One obvious purpose is to get in the first punch of a White Jiouse capitol battle that give every promise of Taging as long as the lawmakers stay here. The certain bitterness of the im pending - fight was pointed Up, meanwhile, by a move among an gry southern democrats to second republicans in criticism' during the 1jJiI(3)VQ Berlin Get Soviet I BERLIN, July 20 -CP- With great Trepaganda fanfare the Russians announced today that they were preparea to sappiy food for all Berlin including the 2,000,000 German , inhablt-ante- of the western sectors rhom they have blockaded for more than a; month. , They claimed they weald be able te do j this with -100,000 tons ef bread grains imported from the Soviet ' Union. An annosneement by the ef - ;flelal Soviet ' news bnreaa . told ' western Berllners they mast boy this food with Soviet sponsored German earreney which clrcalates here as a rival ' 'to the western-sponsored deat schemark. The announcement was timed, to coincide with a state ntent by the western allies they they were unable bees ase ef the Russian land blockade to de liver proposed increases in food ration scales for their sectors ef the city. French Premier Quits as Array Budget Sliced PARIS. July 19 -CSV Premier Robert Schuman's coalition gov ernment collapsed tonight. It had been in existence since last No vember. " The collapse was caused by the national ,- assembly's action ' in amending a government-sponsored army budget and the announc ed resignation of the five social ist ministers from Schuman's Io nian cabinet. The issue was chiefly a pro posed H budget for national de fense, although there were other conflicts in - the background. Schuman and his MRP 'tried to spend the equivalent or j,on, - 000.000. The socialists ana raai- cal socialists wanted to cut this by $40,000,000. - Schuman was willing to snow a cut or sza.ouu.uuu, dux reiusea to go along on . the remaining $17,000,000. The assembly voted, Tiowever, to adopt the sociallst-sponsorea amendment calling for the full 440,000,000 cut. The vote was 297 to 214, with 70 abstentions. . Schuman told the house before the vote that "if this amendment is voted, I shall be compelled to rive bit resignation to tlw presl - dent of the republic.' Less than two hours' later he went to President Vincent Auriol ts Tesign. , Rliee Selected Korea's Head . - Wat Syn groan Rhee, who for nearly 40 nda for indeDendence. today was elected president under thai country's first democratic govern- government U now being set up to Amencan-occupiea souui Korea. A separate communist re- gime has been created in the Ru- sian-ruiea norm. American Killed In Korea Ambush SEOUL. Tuesday, July 20-tfl7-1 One American enlisted man was vnioH mnA .nnther wounded SUgnt- I It in an ambust yesterday at an outpost near the dividing line be-1 tween American and Russian zones I of Korea, the army announced to-1 day. I : - An unknown number of Kore- ans.oin- civilian clothing, attacked five American soldiers with gre- nades and small arms, the army I report said. Then the attackers I ran in the direction of the Russian I occupation zone. PriceControl snecial meeting. Senator Mc&el - I lan (U-Anc lex reponera www mat tne uixie group nas no m- tention of submitting tamely to party discipline and swallowing the Truman program, specially on civil rights. . Charles C. Ross, presidential secretary, told newsmen that Mr. Truman is at work on a bin tax ing in most if not all of the ten-; point ami - m nation program ne urged on congress last jvovemDer. There will be a concrete bui on high prices," Ross said, out ad ded that details have not yet been settled. - ,: - - - . Food I uJGD4 DDT) EfeD'OODU DullesFranlcs n State Office Consultations WASHINGTON. July 19 :-)-Thomas E. Dewey's foreign affairs advisor and the British ambassa dor were called in by the admin-" istration today in a round of high level conferences on the Kusoi&n. blockade of Berlin. J i There was some speculation that the move might mead the next counter - measure has been de cided n. ' An i ,' The German crisis, with Its un derlying threat to world peace, was "high on the list'? of discus sions between President Truman and top diplomatic and military officials at the White Hou.se. Later John Foster Dulles, ad visor to Governor Dewey, repub lican -presidential nominee, and Sir Oliver Franks, ! the Britih ambassador, were consulted at the state department. if Truman Hears Report c Dulles had his first face- o-ace meeting in weeks with Secretary of State Mars hall. They conerrtd about 45 minutes. ; l Franks talked for an hour later In the day with Undcrsetretary LovetL He told reporters that the Berlin situation was' discussed. Mr. Truman got a I fresh reDcrt in person from Undersecretary cf the Army William H Draper. Draper has Just returned from the Berlin area, where a Russian clampdown on food and fuel ship ments from the west has brought about tne possibility jot a tiasn between Russian and western arms. ,: Allies, Zoiial Heads to Talk i i Wtst Gerihany BERLIN. July 19 -VP- The British and - French Americans, I military governors agreed tonight 1 to "talk over with political leaders from their zones German counter- I proposals for a separate .western I German government. ! i They will meet the German min- uter - president or the ihre. I western zones in Frankfurt to- I morrow in an effort to obtain I clarification of the German pro- i posals. American officials said, Reliable sources said that in the I background was a growing hesi- i tancy or the French to push I through the western powers' clan I for a separate government. The reluctance coincided with 1 the Berlin crisis and increasing tension between the western pow- ers and Russia. : f ! The Germans said their coun I terproposals stemmed from fears they would be accused of split ting Germany by carrying through plans for a separate; government in tne west. i - l j German political leaders pro posed a weaker version of the re- recommendations, substituting I : VAWUUVV -VVJH administraUve sUtute for a con- I r - ,', - . J - f piCClWOraters Sign i New Republic Pact r PITTSBURGH, July 19 P Pre,ident PhilUp Murray of the ciO-United Steelworkers today announced agreement had been, reached with the Republic Sleel' Corp. of Cleveland granting 13- cent hourly wage increases to 33,000 production Workers. Murray . said the agreement was negotiated on the same terms and conditions as the were pact reached Friday ; with the U. SL Rtfml rom." ' GANDHI ASHES 8TREWN DURBAN. South Africa. Jul 19 -VP- The last ashes of Momandas K.. Gandhi were scattered at the mouth of the Umginl river today by his second son, Malilal. It wss in Durban that the elder Gandhi first developed his weapon of pas sive resistance. Other ashes were consigned earlier to rivers in In- dia considered sacrttl by the Hin dus. BOLT HITS POWER LINES PORTLAND. Julr 19 Lightning struck two Bonneville Power lines between Grand Coulee - and Spokane today and - . fo- notiines of four aluminum pUnts for 13 minutes in order to restore other service. c-n v. ''aiay if