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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (July 31, 1948)
O' OLCl' O'DDOi O 0'0;0 'PS on C3 a o !E3 0;'rC3 O C3 v3 mmm.J POUNDDD i 00 . ! & 1651 l .::-,;t---'. ...v ;- :'r. ; !-- By Eddy Gilmerc 1 MOSCOW, July 30 -(A3)- Foreign Minister V. M. Molotov is out of town, U. S, Ambassador Walter B. Smith was told today when he ought an appointment to discuss four-powef negotiations over Ber lin and Germany. When the embassy called the foreign ministry for; the appoint ment, the response was that Deputy Foreign Minister; Valerian A. - UtP I TOD POPS The Marshall plan embraced not only gifts from the United States but loans, and counted on great revival of intra-Europe trade. Thus far, foreign countries or firms have done little or no borrowing, and fear of foreign currencies has held back trade revival. Possible borrowers pre fer to ?take the cash and let the credit go," which is but natural. And national restrictions on for eign exchange are barriers to commerce. When the gift money runs out, as it will, the borrowing will start and some progress Is re ported toward creating a foreign exchange pool for clearing ac counts in international trade. Money troubles affect many of the countries of Europe. Belgium was courageous enough to apply controls early and prevent in flation. France wasn't and the money supply quickly outran the production of commodities, invit ing inflation and the black mar ket. Great Britain tries to keep a $4 value for its pound but on unofficial markets its value is far less. As governments through licenses and trading departments manage most of the exporting and importing, the result is a glow strangulation of trade. To sore this exchange prob lem a committee of financial ex perts has been meeting in Paris, with ECA boss Paul G. Hoffman. It has worked out a plan which it is hoped will relax the tourni quet and permit a much easier flow of the blood of commerce. The details have not been settled but the frame of the plan calls for creating a fund composed of (Continued on editorial page) light Penalties Levied Against Farben Heads NUERNBERG, Germany, July SO--An American military tri bunal today sentenced IS direc tors of the I. G. Farben chemical combine to serve prison terms ranging from 18 months to eight years. The penalties were the mildest yt imposed In the series of war crimes trials here. A few hours later a dozen of the directors left Nuernberg jail, free men for the first time since their industrial empire crashed along with Hitler's third reich. Several said they expected to be back in their scientific jobs. Ten were acquitted outright on all war crimes charges. Two oth ers were convicted but their sen tences were so light that credit for the time they already had served meant their immediate re lease. Actually only seven of the Industrialists will remain behind bars for any length of time. Culinary Union Reopens Talks The local culinary union will meet with local restaurant owners Monday at S p. m. at the Labor tempi to further negotiations in connection with the proposed rest aurant workers strike here, Her bert Barker, union secretary said Friday night. Action in the proposed strike thus far has included a strike vote by culinary union members but no strike has been called to date. The culinary alliance turned ac tion over to the arbitration com mittee following the strike vote. Animal Crackers BV WARREN GOODRICH ? "Don't let t Ae sign fool ya, kid r at put for for stmos zonn was on amy, Ambassador Smith, in company with Frank Roberts, private sec retary to British Foreign Secre tary Ernest Bevin, returned to Moscow only yesterday from Lon- ! don where high - level strategy conferences were held among American British and French dip lomats on rew approaches to be made to Moscow. Reports concerning these con ferences ;have been prominently published abroad for a wee!-. along with reports that the three power proposals probably would be ready for presentation to Molo tov late ; this week. The Soviet press has not published anything concerning these reports, however Informed sources I here yester day saidf the chances were good that a four - power conference on the foreign minister level would be held in Paris in September to iron out the Berlin deadlock and other German disputes between east and west. Western diplomats have stated, however, that a condition to a con ference was the lifting of traffic difficulties to Berlin. (The socialist press in Berlin said Molotov's "vacation" was ' a delaying tactic. (Diplomats in Washington spe culated that if Molotov's absence continued for many days an at tempt would be made to approach .Prime Minister Stalin directly, Washington officials considered the issues too important to be taken up with lesser Soviet au thorities.. (A state department spokesman refused to say whether Molotov's being out of town was a "brush- off.") It was understood that Ambas sador Smith had not intended to ask Molotov for an appointment at any specific time. Meat Prices Continue Same OldStoiy-Up CHICAGO, July; 30-)-Prices bobbed over the whole course to day. While livestock rushed high er hogs setting all-time rec ords at some terminals stocks, cotton and grains plunged. Reasons for the ups and downs were similarly divergent. In the case of livestock, a week of sharply I: curtailed fresh supplies from the country caused meat men to bid vigorously for what was available." But grains and cotton still suf fered pressure from excellent crops and dealers 1 in stocks ap peared downcast by possible anti inflation action In Washington and uneasy situations overseas. A sidelight to the general price situation was announcement by the International Shoe company at St Louis, M04 of wholesale increases averaging 10 cents a pair effective Monday. From Boston came a report by the Massachusetts division on the necessaries of life that the pur chasing power of the dollar had reached- an all-time low in the state of 60.9 cents. The cost of living increased 1JS per cent this month, ( 9.7 per cent over last July, and 68 per cent since Jan uary 1941, the department said. Salem Citizens Seell Shade as Mercury Hits 91 Shirtsleeves and cool drinks are expected to remain popular today in Oregon and the Wil lamette, valley as the U. S. Mc Nary field weather bureau and Associated Press got together Friday night and predicted tem peratures near ;the 90 degree mark. Salem had a high temperature of 91 degrees Friday, warmest since July 16 when the mercury hit 93. i Hottest spot in the state was Medford's 95 with Roseburg and Klamath Falls trailing with 92 degrees each. Eugene, Burns and Lakeview had 90 degrees each Friday, The Dalles 89 and Portland 87. The i weather bureau forecast that the thermometers would top the 100 mark in southern Oregon today, :snd range up to 90 in northwest Oregon. Truman, Dewey on Hand For Airport j Dedication NEW YORK, July SO-CD-Pres-Ident Truman and his republican White House rival. Gov. Thomas E. Dewey, will I see the nation's greatest peacetime display of air power together tomorrow. The ; mighty show will follow the president's dedication of an other study in superlatives the huge New York international air port at Idlewild In Long Island's south shore. f SALEM TOUTS BID LOW PORTLAND July SO -4- J. Wesley Webb, Salem, submitted the low bid of $11,372 to the army engineers for repairs of a revet ment along the Willamette river's right bank at Jacobe Bend, seven miles northwest of Halsey. ;-'! . ; NINETY-EIGHTH TEAR Resigns 1 BUDAPEST, July 30 Zoltan Tildy, first president of the Hungarian republic, resigned today, clearing the way for the communists to tighten their grip on the county. (Above) Victor Csornoky, son-in-law of Tildy, has been "arrested en eharges of spying and treason. (AP Wlrephoto to The States man.) Relief Checks To Show Rise In Payments PORTLAND, July 80-(i?J)-Relief payments to the aged, blind, and dependent chijdren wfll be in creased October 1, the state pub lic welfare commission decided to day. ' The exact details have not been worked out, but more federal money will be available on that date. The social security law per mits an increase of as much as $5 per case. The commission cited such changes as these: Increasing the standard food allowance for an adult from $23.60 to $26 a month. Increasing the clothing allowance for an adult from $5 to $3.50 a month. Increasing the textbook al lowance for a high school child from $4.50 to $6 a year. Oregon's public assistance out lay in June dropped for the third straight month. Payments totalling $1,655,852.95 were made to 32,412 cases. Old age assistance totalled $984, 623. The average check was $43.63 12th highest in the United States. Colorado paid the most to old-age pensioners, $60.55. Mississippi paid the least of any state: $15.77. - i J V : Pacific Northwest to Honolulu Airline Cains Approval of CAB WASHINGTON, July 30 -(Ph Establishment of a Pacific north west - Hawaii airline to be oper ated by the Northwest Airlines for five years was approved today by the civil, aeronautics board. The board said President Tru man had agreed to the action yes terday. That was shortly after PORTLAND, July St -AV FortUnd sUII isn't sure wheth er it wfll get 1U lena--sengnt direct air route te Hawaii. Ray Owen, chairman ef the city aviation commission, said that Portland's airport is net new adequate f er a terminal fer seen service. John Doyle, manager ef the Pert ef Portland, said the pert commission is "serlevsly con sidering bunding a new, long er rmnwmy which eeaid hanle the largest extottag airliners. Senators Magnuson (D-Wash.) and Morse (R-Ore.) told him post office department objections to the airline because of high mail sub sidy should not stand in the way of the direct service. The airline will operate from terminals at -Seattle, Tacoma and Portland. The board -aaid it was difficult to decide between Northwest Air lines and Pan American Airlines which also sought the route. ; The Matson Navigation compa-1 D7 and Trans - Ocean Airlines al so applied for authority to estab lish the route. - . 10 PAGES IP Red Spy Implicates War Agency Export Program WASHINGTON, July 30 -JPh fell in love with a communist and became a Russian spy, calmly un wound today a story of collecting wartime military information from William W.'Remmington in the war production board. She appeared before the senate into reports of subversive persons Tfldy Resigns As President Of Hungary BUDAPEST, Hungary, July 30 (JPy- Zoltan Tildy resigned as president of Hungary today and cleared the way for the commun ists to tighten their grip on the country. An official announcement said leaders of the government par ties accepted his resignation and ordered parliament to meet on Monday to name a new president. A foreign office spokesman said there was no political crisis in the country. Earlier in the day, the interior ministry announced that Tildy s son-in-law, Dr. Victor Csornoky, had been arrested on unspecified charges of spying and treason. Csornoky returned to Budapest two weeks ago from his post as minister to Egypt. He resigned that post yesterday. Tildy, first president of the Hungarian republic proclaimed in 1946, was a former leader of the smallholder party which was strongly supported by the peas ants. He was a holdover chief of state from the days of Premier Ferenc Nagy, who was obliged to resign in the communist coup of May, 1947, while vacationing In Switzerland. Nagy ls( now in America. A foreign office spokesman, asked about the charges against Csornoky, said there is written evidence against him in the hands of Hungarian authorities. The spokesman said Csornoky had committed his crime in Cairo and added that no official re presentative of a foreign power was involved. He denied a report that Csornoky had attempted to escape when police arrested mm and that he was shot. B-36 Carries Record Load FORT WORTH. Texx July 30 (Jpy-An announcement today said a United States air force B-36 bomber, carrying the heaviest load ever lifted by an airplane, had completed a 6000-mile test mission under simulated combat conditions. The Diane's average speed, said the announcement by Consolidated- Vultee Aircraft corporation and the air force, was more than 300 miles an hour. The B-36 took off at a gross weight exceeding 300,000 pounds, the announcement said. The board found that the Pa cific northwest had experienced a great growth in population in the last few years while industrial de velopment is proceeding at a rapid rate. The board found a direct route would shorten the distance 360 miles, saving passengers about $20 on a one-way trip. It said evidence indicated a sub stantial demand for direct ship ment of perishables such as baby chicks, flowers, berries, mush rooms and seafood. They told the board the distance from Portland to Honolulu would be 2,398 miles and from Seattle 2,733 miles. The present distance via San Francisco, they said, ia 3,092 miles from Seattle and 2, 959 miles from Portland. ST. PAUL, Minn, July 30 -UP) The first survey flight by North west Airlines from the Pacific northwest to Honolulu probably will be made sometime in the fall, Crgil Hunter, president of the air line, said today. No definite date has yet been set, Hnnter said, but steps already have been taken to make the first survey flight. At the outset North west Airliners operations will be carried on with the special DC4 planes now used on the company's flights Into Alaska and the far east. . i - r . These planes will be replaced by the larger, faster Boeing Stra-to-cruisers when those planes are available, Hunter said. Tii Oraeon Statesman DUOTtrS FDaODUg ; Sift Ylr Director Elizabeth T. Bentley, who said she investigating committee inquiring holding responsible government Jobs. Remington tonight said flatly that Miss Bentley's allegations are untrue. He told reporters that he will prove this tomorrow when he ap pears before the committee which heard Miss Bentley's testimony. Remington is still on the gov ernment payroll but was placed on "indefinite leave" from his com merce department post more than a montn ago. Miss Bentley, 36, who said she was a 1930 graduate of Vassar college, said she decided to quit her communist work centering in New York and Washington in 1944 and a year later went to the federal bureau of investigation office in New Haven, Conn., with ner information. She said she went to New Haven rather than Washington, because "after you have been doing work like mine for a while, you begin to feel there are Russian spies in every government agency. Remington, a man in his early tnirues, is listed in the congres sional record as "director, export programs staff, office of interna tional trade" in the commerce de partment. Miss Bentley said she collected communist party dues from Rem ington as well as secret govern ment information, but he was "ve ry irregular" about paying up. Also in the course of afternoon testimony, she told senators: ' 1. The communists had a "con tact" who worked at the White House and notified them the Am ericans at one time were about to "break" or translate the Russian code. 2. She was in contact "at least once" with someone in ton ex ecutive offices . who helped pull strings to have party members moved to key spots in the govern-t ment. 3. A former secretary of Col umnist Walter LiDPman iielDed her dig secretly through his files on American - British relations for matter to give the Russians. Miss Bentley identified her as Mary Watkins Price, now living in norm Carolina. Nevada Joins Vet Battleships To Sea Grave ABOARD DESTROYER ES CORT GEORGE, July 30 -(P)- ine Dattlesnip Nevada, which sur vived two atomic bombs, was sunk by aerial torpedoes today after even the mighty dreadnaueh Iowa failed to send her to the bottom. The end for the veteran of two world wars came after the navy had fired the works at her for four and a half days in a test de signed to show what mnrirn meth ods can do against battleship ar mor. Torn by new, secret explosives, seared by rocketsbattered by the Iowa's 16-inch rifV nA nmitu1H by the smaller shells of cruisers ana destroyers, tne wevada still remained defiantly afloat, Then navy torpedo planes came thunderintr in lnor rlauu1 19- inch "tiny tims," end the bruised old battleshin took in full klaat of several of them on the port siae. i . The, Nevada lumbered slowly over, her stern settling beneath the waves as she rolled. The bow Pointed unward for iiinvmri mnA then it was gone. j The Nevada's grave 'was the sea five miles deep about 80 miles ouwwesi oi .reari Harbor. It was the end for; the battle ship which the Japanese thought they had sunk in the attack on Pearl Harbor. Left burning, she was refitted, and fought in the Aleutians, in the Normandy beach landings, at I wo Jims and In the Invasion of Okinawa, i Fry Files Candidacy For Council Position 4 A declaration of candidacy was filed Thursday by Dan J. Fry, in cumbent, for the position of alder man from Salem ward 4. . ' Elmer M. Amundson, who Is a member of a committee of SO to draw a referendum! petition to seek to replace the present mana gerial form of government with a city commission I government, also has filed as candidate for ward 4 alderman. Three candidates have also filed for alderman from ward 6 Robert DeArmond, Incumbent, Tom Arm strong and George CadwelL Salem, Oregon, Saturday, July Police Charge Pickets v. - r . t f ' w - f - If'. V ( S V.: DAYTON, Ohio, July St Felice are shewn charging scattering pickets when fighting broke eet at the TJnlvls Lens plant at Daytea, Ohio, when non-striking workers were eseerted inte the j plant (fP) Wlrephote te The Statesman) j Troops Use Hinted to Maintain Peace at Struck Ohio Company DAYTON, C July SO -JPh A day that began with wild! picket line fighting and tear gas ended tonight with bare possibility the C6-day-old strike of United Electrical Workers (CIO) at the Univls Lens Co. might be settled. j Gov. Thomas J. Herbert of Ohio, plainly hinting troops were the next thing, told union leaders bluntly he wanted no renewal of violence when the plant reopened Monday. He ordered them to "cut out that bunk about spontaneous when they protested they could not control sympathizers demon strating at the plant. Then, in a conference with com pany pfflclals, Herbert neiped work out a proposal still abso lutely tied to a promise of a peace ful Monday morning to get un ion leaders around a table with company officials Monday after noon. He promised to come himself to preside. City officials already had asked and then canceled a plea for the governor to send troops to prevent more violence in the 86-day-old strike of the United Electrical Workers at the little Univis Lens Co. plant. The governor brought Adjutant General Chester W. Goble for an afternoon meeting with city and county officials- The governor hoped to talk to Lou Kaplan; bur ly director of the strike, and oth er union officials later. The meetings were called as a result of a wild five minutes just before eight a. m. (EST) when fist fights broke out between non strikers, trying to get into the plant under police protection, the strikers and policemen. C J. Edwards, 77, Former Senator, Dies in Tillamook TILLAMOOK, Ore.. July "SO UP)" Clarence J. Edwards, 77, former state senator from Tilla mook county (1921-1923), died today. Edwards had lived here 38 years. He was the last surviving founder flBlz) oi tne oia toast Power company, which was sold to the Mountain States Power company in the mid-twenties. A native of Indiana, dwaras was graduated from Pacific col lege in 1893, once served as mayor of Newberg, and was on the boards of Pacific couege and Willamette university. He is sur vived by the widow, Abbey, two sons and a daughter. Weather Max. Win. Fractp. f 1 U Jt , m st m - Salesa : Portland Saa STattdaco Chlcare ss 1 New York ts wffliiMtte rivor IS faat. roHXCAST (front UJL waathar bu reau. MeNary Said. Baleta): Generally fair tadav and tomorrow exeapt for early morning eloudln a Hlf h tem perature today IS. low tonight IS. Mod rata wlnda may interfere with dusting and praying; aoarwiaa conoiuane sa forabia for all fans acUrtUee. f auag ntgcirrrATioif (trmm. SyC 1 te Jmly ), ' ir zkir Aiw 31. 1843 Prfcald 4 !.. J 4 Southerners Delay Anti-If oil Tax Measure WASHINGTON, July 30 -iV Southern opponents of the anti poll tax bill chalked off their se cond successful day of delaying tactics in the senate today .j ; A weekend recess, running un til Monday noon, gave them time to develop their strategy and seek new recruits. ' They were able to take things easy for two hours today. It took that long for the clerk to read a renewed demand from President Truman for inflation controls, and for the republicans to criticize his recommendations. j Before the senate recessed at 433 p. m. (EST) Senator (Wherry of Nebraska, the acting republi can floor leader, said his side would keep pressing a motion to bring up the bill fiuntil we can pass it favorably or proceed on it in some other manner." j He didnt say what other man ner hehad in mind. Senator Taft (R-Ohio) told the senate that the republicans will try hard to get action on the bill by the middle of next week. He suggested that congress may be able to quit by Aug. 7. Garden Club En Bean Festiv By LtUle L. Madaon farm Editor, The Statesman STAYTON. Julv SO Queen Lor raine Walker and her royal court, riding in a auver ana pin- noei driven by Larry Freres, (won for thm Ktaytnn Garden club SweeD- gtakes prize of the grand parade of the Santtam Bean festival here tonight, airs. V. R. Tuel was in charge of decorating the! winning float, . r . The 93 entries formed the larg m Tiarad ever held id Stavton fuf tnwnaneonle said the crowd. estimated at more than 4.500, was the largest ever- witnessing amy local evenL j nthee narada winners Were: Marching groups, Albany high school Dana, ugara mgn scnoot Vuin mnA navvrnflr1! Guard: com mercial, Stayton variety store, Me hama Garden club and , rrsres building Supplies of Staytonf fra ternal. Knights of Columbus. Rain- ttnm ni-la aiwf (TathAliA nauahtera: industrial, Paris woolen mills, ma rine reserves ana ussier ureaa rollowirig the parade all comers wara treated tn anan beana from the world's largest bean can, an annual event 01 tne Dean ieauvax. r r No.ni 5 ongress i By J. W. Davis ASH1NGTON, July SO -OfV jblican leaders, stung by President Truman's charge that congress is blindly disregarding thai inflation I dangers confronting the) nation, flung back their an swer tonight! lkouse speaker Joseph W. Marw tinl retorted that putting into af fect Mr. Truman's nrosram for tins! inflation would i remiira doubling Income taxes "and that would sink America. '' 'I'nn lunra vnti asM Utn. tin In a broadcast speech, .That republican congress and tr inblican nartv are 1 earer te chick inflation and to build mere homes. - - i fBut X can further assure j-u tht we are not going to be. stampeded lntn adopting methods which hava brn discredited and proven faultythrough bitter atd costly experience." " . Tak Renewal nit t Tha nrasidant in his aiitl. infla tion program has proposed tight ening credit controls, some con trols over wages, and restoration of i the excess profits tax. f, jlVhen he seeks to restore V excess profits tax, said V Senat Millikin (R-Colo) chairman of the achate finance committee, the president is Ignoring 1he people's demand for further tax reduc tion." - t i f .: Mr. Truman's accusation that congress is disregarding Unflation dangers was embodied in a mid year report of h3s council of eco nomic advisers. Senator Taft (ROhlo); republi can spokesman in the senate, said snappishly that Mr. Truman actu ally "doesn't want to Jrtop In flation." -He is making political speechee to! congress," Taft told the seri ate. ' Snyder Keperts I ' Senator Berkley (D-Ky), v!re presidential running mate of the president, got into the quarrel by saying Taft himself was mk lijg a political tpeech. Taft talked of winding up the special session a week from tomorrow. $ While all this was going en, congress committees heard: 1. From Secretary of the Trea sury Snyder that he doesn't lie price controls any more than he does caster oil. but that In an emergency resort must be had te dstasteful remedies. fj 2. From Presidential Assistant Paul A. Porter, former OPA chief, that petroleum, and petroleum products would' b among the items to get "first consideration" if Mr. Truman should induce con gVess to spprove price controls. Porter previously had included la tils group meats, dairy products cjiothing, building materials, steel and some other metals. 7 Letter Aired 'i f t. ' I Today's fireworks on i Inflation were set off by a bristling letter Mr. Truman sent to Capitol Hill th th midyear renort of uvi, ...... - - . hits mundl of economic : advisers. T The report told of peacetime or ployment, wages, production and trade. It recommended, too, the dizzying climb of prices. I Mr. Truman said that heavy spending tor defense and foreign aid, third : round postwar wage fcittta and the nrobable wiping out Of the government's money sur plus within tne next year are con tributing strongly to inflation. Dancing completed the ' evening's events.,, i I The ninth annual festival will close Saturday night with a horre parade at 2 pan. Saturday, after noon, followed by sports events at $ at the city park and dancing Saturday night ! jr j A realistic note was added to the bean festival Friday night in the number of actual bean pickers veling into Stayton I and vN est tayton as the festival goers were turning to their homes. Harvest f the crop which makes possible festival each year, will begin earnest neat week. 1 1 All net funds from festival ents will go toward construction f the Stsyton community bail. oun'SEriaiozs uc:i iG-o (Hoaaat) R efiitesj equests Imt I nvtiitnri J UV JUUIU11D 1 al Parade Honor 1 i 1 I-;.