o o o,ncQ' o.m,hQF2nip o. Qin.o1.,&,aor;n !,p.P:!' 0"oc . oct o i Russians Release Three Americans; Nab Photogiiajpher BERLIN, Aug. 23-(P)-The Russians today freed three Americans but almost immediately stirred again invading the American sector to seize a German Thomas P.' Headen. deputy chief of the' American ernment's information services division, was released after overnight detention in the Russian sector of Mountain-climbing is usually simple business, consisting merely of "picking them up and putting them down." I like to do a moun tain a year and last Saturday my son and I tackled Grizzly Peak which rises from the south side of Pamelia lake in the Mt. Jefferson country. He had worked on trails in this region for the forest ser vice nearly 15 years ago and re called Grizzly as one of the satis fying and not too difficult climbs. It is both. To get to the mountain you drive on the North Santiam high way beyond Detroit and Idanha to the mouth of Pamelia creek. A logging road leads in some three miles but it is closed now be cause of the fire season, so you have a six-mile hike to the lake, the last four miles of it through the deep forest. The normal sil ence of the woods is broken by the noise of many waters Pame lia and its tributaries, Red and Milk creeks as they tumble in cascades from their mountain springs. The grade is steady but not steep, and the trail after it takes off from the road is an old one, easy to follow. The forest is mixed. Douglas fir predominates but there are many trees of noble fir, some hemlock, quite a little western cedar and a sprinkling of white pine. Still visible are effects of the great storm in April, 19 31, when many trees were blown down. This was the dust storm. when shiDS 500 miles - out at (Continued on editorial page) State's Voters To Decide on Deficit Funds Oregon electors will vote in No vember general election on a state eeneral fund deficit which the state tax commission Monday fix ed at $6,430,069. If the deficit is approved, it will be met by surplus funds from state income tax revenue which goes to ward offsetting property tax levy. This procedure was upheld last week by the state supreme court as litigation over the state income tax surplus came to end. State governmental functions financed by legislative appropria tions will cost an estimated $39, 971,726 in 1949, according to the years tax levy as announced won day. - Of the total requirements $19,- 771,948.49 represents the amount inside the six per cent limitation and $20,199,77733 the amount outside the limitation. The levy estimates miscellane ous receipts, surpluses available in the general fund and unexpended balances at the end of the fiscal year will total $6,204,207.88. This, applied to the requirements inside the six per cent limitation, redu ces that amount to a net of $13, 567,740.61. - Against the net amount is ap plied the state tax base of $7,137, 671.51, leaving the deficit of $6 430,069.10. - WOMAN DIES TS CRASH McMINNVTTJ.K, Aug. 23-(-An automobile overturned in loose gravel near Gopher Valley today and killed Mrs. Mary WshI, 66, Bandon. Two passengers, Mrs. Bob McKeme. Sixes, and Aubrey Van Loo, Cornelius, were hospitalized here.- . TREMOR ROCKS ITALY ROME, Aug. 23-CtfVMore than 600 Houses were damaged in southern Italy early today by an earth tremor, the public works ministry said tonight. Animal Crackers BV WARREN GOODRICH "l vse tb9 tsat nd peck tjstzzu" ... . . CftP I By George Bria f I new tension in blockaded Berlin by phoSgrahe?. military gov- Berhn. i : I Two others Americans seized Aug.1 5 hear the t Russian zonal border 75 miles west of Frank furt, were released at Herzfeld on the border today. Lt. Sherman 5. Turner Of Council Bluffs, Iowa, and Rowland M. Myers of Brook lyn. K.Yi both U.S .military eov- i emment officials, said they were "well treated- if you like cab bage." 8 1 The kidnapping of the German photographer I emphasized anew the Soviet determination to pre vent picture-taking in or near their sector. 1 Headen had been taking pictures of the Berlin no man's land of Potsdamer Platz shortly before a Russian patrol pounced on him. The seizure of the photographer was at least the fourth violation of I western sector jurisdiction since last Thursday when a Russian raid,! on German civilians in the Pots damer Platz precipitated a riot by the angry stone-throwing Ger mans. 1 Western sector police headquar ters announced meanwhile that Franz Erdman, head of the crim inal division ! of the Soviet-con trolled police! had been released. He was arrested yesterday in the British sector. Armed Forces Move (Toward Jobilntegration WASHINGTON, Aug. 23 -Wh Integration of the army, navy and air force moved one step closer today on paper at least with an agreement that each must call on the other for help if that will cut j costs and do a better lob. At the same time it was agreed that each service shall have the responsibility of figuring out what is needed for a task in its primary field. The net effect apparently is that when one of the fighting arms has a big job on hand it will get along better with the high command if it gives full consideration to the equipment and know-how the oth-i It covers the "gross national pro er services possess, and invites aid I duct" - - the dollar value of all if aid would be useful; on the other hand none of the services can el bow into another's field without a bid. That was the principal result announced today by Secretary of Defence Forrestal after a closely guarded ; weekend conference with top men of all three services at the naval war college at Newport, R.I. As Forrestal stated lt more for mally, the joint chiefs of staff and the civilian heads of the three fighting 1 departments agreed on the fullest consideration and use any available forces, regardless of service, if they add to the effec- tiveness and economy of the oper- ations." I At the same time it was provid ed that "each service has full and put were these factors: undivided responsibility and com- 1. Consumer spending for per mensurate authority in the field tonal use, after hesitation early of the primary functions assigned to it. ' : Just what the operating result will be l with regard to strategic bombing, focus of an air force- navy disagreement, was not spell ed out. i is The Newport agreements were I intended to extend and clarify an I outline of service responsibilities I laid out at a similar conference in Key West, Fla, last March, Woodburn Autoist Honors! City Cops; Posts Bail Twice A Woodburn man who drove to Salem for a visit Saturday night told city police he was impressed with the manner in which city vamc laws are eniorcea. Police records show that Don ald C Baker, Woodburn route 1. was -arrested for speeding twice within 13 minutes late Saturday night and posted $10 bail each time. I i. , The short! time between arrests was paralleled by the proximity Kimiiy I cS? oz tne ' places of arrests, was first arrested at South mercial and Superior streets; the secona time at soutn Commercial and Hoyt streets three blocks south. 3 ;.-... ; ! The same? pair of officers issu ed both citations. I GRAIN BUYING ADZED , . WASHINGTON, Aug. 23 - UP) - The agriculture r department i re ported today it bought 5,104,613 bushels of wheat and 101,687 bu shels of barley last week for short areas abroad - I Weather Max. . It . -70 S3 Vfin, Prccip. M ' , ,M 9 M. S traea 10 M SalM j- - t Portland ... San Francisco Chicago .., ii. , 1 M M Mew York J0O t wniamctt riw -3.3 feet. I i FORECAST (from U-S. wathr tro-1 reau. McNary field, Salem): Mostly hmtirht to Onuffh.Birrick cmn cloudy .today and tonight with light I Drou rTV.TT i-Qamc rain in mm early morning, wgn today i 14. low tonifht S4. Weather will b I Meanwhile state police contin f!T.iw"iUy tovorabi lor most harveat ued their search for the hit-run activities. t - - . - i I .v, .4.-1- - i saucm ru crprr atiox rroaa Sept. 1 tm Aas 24) l I TblaYear , Last Year ' Avrgl"" 47.4S- M.T4 XJJi At NINETY-EIGHTH YEAH Wreckage of Plane Which Carried 4 St ate Leaders to Death CP - - - 5- - . : ... - s mmwmmmmmmmmmmwmmmm .1111 i vm, 9mv imm LAKE OF THE WOODS, Aug. 13 which plunged four Oregon republican leaders i their deaths I Sunday afternoon. John R. Snellstrem, Eugene, Earl Johnson, J Air Crash American Production Climbs To Record Rate for Quarter WASHINGTON. Aug. 23.-VAmerica's total production of goods and services soared to a record rate second quarter of 1948, the commerce department announced today. The increase above earlier months indicates that if the rise con tinued the nation now is producing at an annual rate of a quarter of a trillion dollars. The analysis of output in the the August issue of the depart. ment s survey of current business. commodities produced and servi ces rendered. " The second quarter rate is more than 21 per cent higher than the 1946 actual output of $204,000,000,- 000. It represents a rise of $4,000.- 000,000 from the first quarter of this year. It was achieved In spite of a slight decline of Industrial output in June, resulting from shortages of material. This was reported by the department yesterday. A major part of the rise, how ever, was a reflection of inna- tlon. This was particularly, true in consumer goods, where the physi- cal gain in output did not match the rise in value. Entering into the new record market value of the country's out- in the year, showed a moderate pickup in the April-May-June quarter. 2. Government spending rose more than $2,300,000,000 above the first quarter rate. 3. Private investment dropped somewhat in the second quarter. This partly offset the Increases noted above. Purchases of mine, factory and construction equipment increased by $1,000,000,000. 4. Net foreign investment con tinued at the annual rate of $4,- UuaVter' 000,000,000 reported in the first VANPORT CLEANS CP PORTLAND, -Aug. ' 23-V-A wrecking crew began cleaning up the debris of Vanport today. "They will probably find tnree or four more bodies,' said Sheriff Martin T. Pratt DRUGGIST DROWNED MED FORD, Aug. 23 CffV-I-awr- ence Saunders, 51, Medford drug gist, was found floating in' the Rogue river today near Bybee bridge north of the city. . j Week-end Accidents Claim lives of Two Pedestrians Weekend traffic accidents in the Salem area claimed two pedestri ans lives nad hospitalized anoth er with serious injuries. Leonard A. Abbott, Portland, was killed instantly Monday near Jefferson when struck by a south ie"e71 "V,; bound Southern Pacific train. His body was found 120 feet east of the Jefferson depot, tne top oz rus head crushed. : - ' Investigating police were unable to determine whether Abbott walked in the path of the train or was lying - on the tracks. Tne train's engineer said he did not see Abbott until the engine cad passed over him. The bodv was uit wuw auuuk auu lauw; ut lured Eric P. Under. 61. on the South River road Saturday nleht T 1 1 ' 'in ' ! ' ' ' .- I x POUNDDD 1651 ' : ; I " t : -'.. ; . " 14 PAGES im n- m n mmwmmmmmmmmmmwmmmmm j n. i m.m 1 Wreckage of the 4-pIaec plane 1 SmHuiffis Lives off 4 Sftafte Leader of $248,000,000,000 a year in the quarter ended June 30 appears In Sooter Indicted For Murder In Polk Shooting DALLAS, Aug. 23 Amos Soot er has been indicted ton a first degree murder charge by the Polk county grand jury as a result of the killing of Fred Baley Aug ust 12 in the Pioneer district. Arraigned before Circuit Judge Arlie G. Walker, Sooter asked for an attorney and W. A. Wiest of Independence was named by the court. Trial will be held early in October, R. . S. Kreason, Polk county district attorney, said to night. Because of the hop picking sea son it la Impossible to get a jury for a special term of court, Krea son said. Sooter was transferred to the county jail three days ago following his recovery from head wounds for which he was treated at a local hospital. Airline Shift Delayed By Runway Lighting PORTLAND, Aug. 23P- Landing of the first commercial airliner at Portland-Columbia air port was postponed until tomor row because of delay in repairs to runway lights. Air lines have been using Sa lem, McMinnville and Troutdale airport since May 31 when Co lumbia flood waters threatened the airport and later burst into the north Portland area. PROGRESS REPORTED LOS ALAMOS, N.( M Aug. 23 WVAn official of the U. S. me diation and i conciliation service said tonight "definite progress" is being made toward settlement of a six -day-old work stoppage at this atomic weapons center. Under, an Independence hop worker; was found lying uncon scious on the road about 11:45 p. m. He was rushed to a Salem hospital where he died at 8 a. m. Sunday. Linders home had not been located late Monday night. His body was taken to Clougb Barrick company, c In serious condition in Salem General hospital Monday sight was David j Taber, Collins Hop yard. Independence,' injured in an auto collision on -the Monmouth Independence highway. State police said Taber was a passenger in car driven by Ralph Miller of Bonneville which collided head-on with another ve hicle operated by E. H. "Holloman, also of Independence. Physicians said Taber suffered spinal injuries. Police arrested Holloman on a charge of driving while intoxicated and lodged him In the Polk county jail la Dallas. Tli Oregon Statesman. Satan, Oregon. Tuesday August 24. mm mi w n i in n. mm i ijn i., m m. iwiiiMi.iwim.iMi CorvallU, H. Hi Evans, Waldport and pilot af the plane William Flnhrer were all killed when the a take-off. (AP photo to The KLAMATH FALLS, Aug. 23.-(Jpy-An air crash killed four Ore gon republican leaders on an out ing near here yesterday. It was the second such tragedy in tne state in tne last year. Killed at the Lake of the Woods in northern Klamath county yes terday were Rep. Earle Johnson, Corvallis; Rep. John Snellstrom, Eugene; William H. Fluhrer, Med ford, Jackson county senate nom inee unopposed for election; and M. H. Evans, Lincoln county GOP nominee for the house. In adjoining Lake county last October a crash killed Gov. Earl SneU, Secretary of State Robert 5. Farrell jr Senate President Marshall CornetL and their tilot They were on a duck-hunting ex- peaioon. The legislators killed at the Lake of the Woods were in a sister ship of Cornett's. It was owned and pi loted Dy nunrer, who was host to a group of 13 legislators and nom inees for the weekend outing. He was flying his three passen gers to Medford at 423 p. nL, when the plane side-slipped after laxe-oix ana plummeted into the Rep. DongUs Yeater mt Sa lem was close eye-witness tm the fatal crash In soathera Ore gon Sunday, lie! teUs ef Its cir cumstances in an interview with The Statesman, on page ). water 60 yards from shore. All aboard were believed killed In stantly, j Forest service eamlores towed the plane near shore. Three of the bodies were recovered from the plane. Snellstrom's body was recovered toaay ; from the lake. where it had been tossed in the crash. Klamath county coroner George Adler said after an Inquest that the accident was not caused by engine trouble. Civil aeronautics inspectors are expected to investi gate further. r f Snellstrom was a founder of the Snellstrom Lumber company in Lane county which recently was sold to the Long-Bell Interests. He had served in the 1943, 1943 and 1947 legislatures. He was active in civic and fraternal groups. - j - .. Johnson, an Insurance man. was prominent in Corvallis affairs. He served in the 1947 session. In the recent war he was a member of Admiral Thomas C" Kincaid's 7th navy fleet staff, ir ; Fluhrer started in the baker business in Silverton, In 1919. In 1921. he started string of bak eries in southern Oregon, and lived In Medford and Klamath Fans. He was owner of the Fluhrer building in Medford and nresi- dent of the Colestin Lumber com pany and the First Federal Sav ings and Loan association of Med ford. -He served ! in the air force in world war IL At the time of death he was a reserve colonel in command of reserve bombing squadron. - " f -: f. ": Evans, a bulb grower, was making his first entry into poli tics. He was with the army en gineers in Alaska uv world war IL Republican central committees of the respective counties will name ballot successors to the four. Butter Price Down, Eggs Up on Market Heports PORTLAND. OreJ Auc 23-4P) Note to housewives; " uuxier goes down ana eggs go up in price tomorrow. The wholesale trade reports butter will drop two cents a pound on all grades. Retailers will pay 81 cents a pound for grade A prints.! But the grade AA large and medium eggs will Jump a cent a dozen. Retailers will pay 73 to 74 cents for grade AA large. "m i m .11 ' mwn 1 11 . nm'm mmmn 11 , plane crashed Into the lake after Statesman.) Petitions Filed On Commission Form Proposal Petitions for a Salem election on city commission government, in place of the present city man agership, were finally filed with the city recorder's office Monday. Sufficient signatures to place the proposal on the November 2 ballot were counted by Deputy Recorder Eva Rush who said ap- proxJateJy 1,400 valid signatures were on the petitions, about 150 more than necessary. Petitions had been returned to her from the Marion county clerk's office after a check there for validity of nearly 1,600 sig natures submitted. Filing dead line was at 5 pjn. Monday. The Initiative seeks to change Salem's form of government by providing for three elective com missioners to serve one full-time paid basis. The mayor-commissioner would receive $5,500 and the others $5,500 each. City at torney and city judge also would be elected .Present positions of ap pointed city manager, elected may or and seven aldermen would be eliminated. Lebanon Butcher Beats Resistance By Price Slash LEBANON. Aug. 23-fSDecialW Leo Johnson, local market owner, announced today that his week old policy of selling all meat at 59 cents a pound or less wil be come permanent effective tomor- A week ago Johnson slashed prices to overcome the current buyers' strike on high meat prices. Business was .so good that his counter was kept bare throughout the week as shoppers from all parts of the Willamette - valley formed lines along the street Since that time he's hired two butchers to keep up with the terrific trade. Johnson said, the customers have not only cleaned out his meat but have also emp tied his grocery shelves while shopping in the store. "The arrangement has been very satisfactory, - jonnson re marked. ?I will continue to sell meat at prices people can afford." World Council of Churches Sets Permanent AMSTERDAM, Aug. 23.-(ff)- The World Council of Churches formally declared Itself a perman ent organization today with words of regret that it could not embrace the Roman Catholic and Russian churches in a reunion of Christen dom. Those great congregations both havi been invited to send observ ers at least. Neither had an offi cial representative of any kind on hand. Among other invited absen tees, were the southern Baptist convention of the United States with a reported lay membership of 6,500,000 and the Missouri synod of the Lutheran church. - But the world council came into being nevertheless after 10 years as a provisional body with 450 delegates representing around 150 churches In the 40-odd nations. 1)43 Price) J ' By Thomas MOSCOW, Tuesday, Auff. four-power talks. on blockaded Berlin seemed assured earl today after envoys of the three western powers conferred nearly five hours with Prime Minister Stalin and Soviet For eign Minister V, M. Molotov. j j As U. S. Ambassador .Walter Bedell Smith returned to ms embassy at 1:40. a. he told i newsmen he expects "more meet ings" between the representatives of the United States, Britain and France and the soviet leaders. The ' meeting opened In the Kremlin at 9 o'clock last night and was believed to hive been the longest talk Stalin ever has had with foreign representatives. it exceeded by about one hour the longest previous session in the current Kremlin talks which be gan July 31. , i Asked by newsmen about ' the progress of the talks, Smith re plied: ( We're always optimistic. We expect the best and prepare for the worst." This comment from Smith seemed to indicate that the long session with Stalin had injected new life into the four-power con ference and that, contrary to ex pectations, it win continue. ! It was learned on excellent au thority that the three westerners took their case to Stalin after a snag developed in recent meetings with Molotov. It was the second session the prime minister at tended. He and Molotov met the envoys August 2. Molotov was the ranking Soviet official at the July 31 and August 6, 9, 12 and lcui meetings. ' Before the meeting opened last night ! observers predicted freely, here and abroad, that this was to have been the last conference. Smith appeared in a happy moodd This .comment on being optimistic contrasted with the "no comment" reply he has given to newsmen after previous meet ings, j Many observers In Moscow frankly expected disagreement tonight over the vital Berlin and German issues. It became clear. noweyer, after this meeting that there j remains a good chance to settle the German Issues here in Moscow. During the long session, lt was reported without confirmation that Smith and British represen tative Frank Roberts were plan ning to leave Moscow soon Rob erts possibly within the next 24 hours. After the session, how ever, i it was presumed both en voys had cancelled such plans. Smith returned to the embassy with Roberts and French Am bassador Yves Chatalgneau. They retired almost immediately to Smith's third floor study for a three-power meeting. It was assumed that they would draft! their reports on the meet ing for transmission to their gov ernments in Washington, London and Paris. Among western circles here there was a feeling that lt may be possible to make decisive pro gress in the next i few weeks on the Berlin and German problems and arrive at what ultimately may be the foundation of a genuine settlement satisfactory to both sides. i Smith said the Kremlin session. seventh In the series, was inter rupted only for "tea and cakes." Man's Body Recovered From Willamette River i , . ; '. ALBANY. Ore, 'Aug. 23-av Discovery of the body of Harold James Cade. 49. In the Willamette river1 a mile north of here today prompted - Deputy: Coroner John Summers to order a probe. Summers said the body was not marked, but that the man's wal let was empty and clothing con tained no coins. He said the man may; have been robbed and dumped into the river. i The body was found against log boom. It had been in the river for several months. Organization The vote In plenary session of the concert hall was unanimous to go ahead with the door open to the Catholic church. ; Charles P. Taft of Cincinnati, a lay leader of the protestant Epis copal church in the United States and chief press spokesman of the council meeting here, said half a dozen southern Baptist observers were present. The organization was completed as a going concern at the opening plenary session in the forenoon with the Archbishop of Canterbury presiding. - Then at the second session this afternoon Princess Juliana and Prince Bernhard of The Nether lands were guests of honor sittin on the high rostrum among t! church dfg"1tartT VC 5e No. 1C3 P. Whitney j . 2lP-ConUnuance of the Plans Reach Balloting Stage . . By Robert E. Gangware City Editor, The Statesman Cltf annexation ballot j pro posals designed to' add wide art a at Salem's east, southeast) and west boundaries were shaping vp Monday night. j Three such areas on 'ordinance bills introduced before the Salem city council at its meeting ia Salem Chamber of Commerce rooms, and a fourth area ws mentioned by city officials who said east Salem residents are; pre paring petitions suggesting the extension of Salem boundaries east to Lancaster avenue from the Silverton road south almott te State street. r j As, if to underscore these ; signs of expansion, the council Voted last night to purchase a part of the Vista Heights water district which now lies within Salem city limits. The city will pay the engineer-appraised valuation of $5,397 and will complete the transaction by taking up approxi mately $8,400 worth of Vista bonds now held by the state treasurer and receiving in cash from the water district the $1,000 differ ence. !;' , The move . was prompted south Salem residents who- ha- had to continue buying water from the district since their prop erty was annexed to the city more than a year ago, because of the general obligation bonds ) out standing against the water dis trict. City officials reported to the council that only about 20 of the 302 Vista customers live Inside city limits, but that some 50 newer homes in that area have received ; regular city water connections. The Vista district buys water from the city of Salem and In turn sells it to its customers and to the Salem Heights water district. City Manager J. L. Franzen said most of the water, lines will be used by the city and the change over can be accomplished at vir tually no cost to the city other than the equipment purchase. The council's annexation action last night included introduction of a bill proposing annexation vote on a cresent-shaped area in Polk county extending from the land under the west end ef the intereounty bridge, completely around West Sal ems city boun daries, but excluding the city cf West Salem. , ; Tha council deferred. ! final action on another bill. which lists two annexations areas, one a - 400-acre territory southeast of the city, extending to Fairviewj home operty, and the other a small area lying norm or bunnyview avenue between the present city limits and Lansing avenue. City Attorney Chris Kowita had suggested that final action be taken at the same time on all the annexation bills. East Salem peti tioners have been instructed by the ' city to have their petitions sub mitted by September 10. The next , council meeting in September 13.J ( Additional council news, page if Sheriff Stops Jail Break Xry A foiled attempt by several in mates of Marion county Jail te break out of the jail Sunday was revealed Monday by Marion County Sheriff Denver Young. During church services Sunday evening at the Jail a number of bricks were dug from a wall un der the bed in the trusties' room on the north side of the Jail. Al though the tool used had not been found. Sheriff Young indicated it was probably a bed spring. The removed bricks were discovered at lock-up time Sunday night. 0UB CEIIHTC! uo:i, nz On Annexation