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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Jan. 11, 1949)
Truman 68th Ymax 12 PAGES The "messages of retiring gov ernor John H. Hall and incoming overnor Douelas McKay are pret ty much cast in the same mold. There is rather close uniformity ef ideas on acute problems of fi nance, and no apparent collisions of . ideas on other items of state policy.? The one in both messages! JL cautious: neither plows any newl ground. " On the subject of financing the bulging and unbalanced budget of expenditures for the biennium. Hall and McKay agree with the Snell recommendation of two Tears asm: take the property off . set strings off the corporate excise tax and let it be used for general purposes. They agree too, on. di version of proceeds of personal in come receipts tb the general fund. Both propose use of present in come tax surplus for a state build Ing program. Hall would take from it also an adequate increase In salaries of state employes. He thinks the surplus on hand can be used by legislative action; McKay would have the building program referred to the people for approv al of the diversion. Hall and Mc Kay recommend cancelling the Walker plan of discount of income taxes when a surplus. exists. Mc Kay would give taxpayers a credit for medical expenses and $230 for insurance premiums; and ' would abolish the withholding tax. . Hall notes the fast mounting ost of public welfare (old' (Continued on Editorial page) Street fixing Rail repair crews have begun work on a three - block stretch f the Southern Pacific railroad track along South 12th street from State street south. City Engineer J. Harold Davis reported Mon day. Parttt of a campaign promoted by thealem council to clear traf fic hazards along railroad right-of-ways, the project will include resurfacing, new ties, and rails along the bumpy section. Section leaders report that the work will take about five weeks to complete. The city has -granted the railroad company permis sion to block the east lane on a portion of 12th street for storage of materials. Begun-bySP a McKay Succeeds Hall as Governor 't V V -vs. . ' Salem s Douglas McKay became Oregon's governor Monday before packed calleries la the state house ef representative. Photo at upper left show s McKay beinr escorted to the rostrum by Sen. Aneus Gibson. Junction City en his left and Sen. Jack Lynch, Portland, followed by representatives Ralph T Moore. Coos Bay, left, and " W. W. Chad wick, Salem. Lower left is Gov. John Hall giving bis farewell address. Asks $6 Million More in Taxes far Mil The Oregon Statesman. Salem, Oregon. Tuesday, January 11. 1949 Will Seek Addition For Allies By Douglas B. Cornell WASHINGTON, Jan. 1 10 - (Jf) - President Truman told: congress today it will take at least $41,85;, 000,000 to run the government right next year half ff of it to hold back the communist tide. ' Republicans immediately de manded deep slashes ana party lines quickly formed lor the big tests ahead. $ Mr. Truman s budget! covering the 1950 fiscal year beginning next July 1 is peacetime's biggest - -$1,678,000,000 larger than this year. For the cold war with Rus sia he I asked the most I powerful military forces the country has ever had outside a war - - and funds to bolster allied nations against the red surge. f Moreover, Mr. Truman served notice he will ask more funds la ter to supply arms to non-communist nations, a step which will push the budget even higher. All told Mr. Truman I asked for a tax increase of nearly $6,000, 000,000. First he reiterated his re cent request for a $4,000,000,000 increase, mostly on corporations. Then he asked nearly $2,000,000, 000 in social security taxes, to fi nance new and old 'programs. He did not give an inch in his demands for the vast social and economic program he demanded in his state of the union message; such as housing, better schools, more social security benefits. On the defense front, Mr. Tru man stressed the importance of air power, but frowned on the idea of a 70-group air force, which has been heavily backed in- con gress and by the air generals. Mr. Truman said the 1 prospects for the 1951 fiscal yea are for even greater governmental costs. He mentioned national defense and world responsibilities. Republicans called the Truman figures dangerous, reckless and over-estimated. But administra tion forces showed no signs of dis content. Rep. Cannon (D-Mo.) called the budget "the most practical that could be presented at this time." Cannon will head the bouse ap propriations committee $ where spending bills originate. The committee's ranking re publican. Rep. Taber j of New York, observed "they've evident ly given everybody everything they asked for." He said it would be cut down. Senator Pepper (D-Fla) said Mr. Truman had done "a splen did job" in holding the budget tc a figure "only $1,678,000,000 over 1949 with the many increased de mands' on it." (Additional details on page 2) TV Hi 0: it s - i ' - ( f hi V w i .1 POUNOI 1651 No Weather Wl id west Snow and Sleet Gripping Nation By the Associated Press Th midwesL already covered with snow, ice and sleet, braced for a dangerous freezing rain late Monday. Frigid weather gripped the ci trus country of southern Califor nia forthe second time in a week. WHITEHORSE. Yukon Ter ritory. Jan. l&-(CP)-Yukoners who usually brar they live tn the coldest spot on this conti nent with 70 to 80 below-sere temperature common, today cavorted In a gentle southern breeze bringing 40 to 50 degrees above-sere weather. And they had plenty of sunshine, too. Icy winds whipped snow into its winter playgrounds. In western Nebraska, a new snowstorm was piling anexpected four-to six-inch fall on highways still clogged by the remains of last week's blizzard. At Kansas City the weather bureau forecast 48 hours of freez ing rain followed by- "the most serious ice glaze condition in many years" for Oklahoma, Missouri, and Kansas. Highways were still open but travel was hazardous. In southern California, where a low of 18 degrees was predicted for tonight, citrus, vegetable and flower grows ignited smoke pots in an effort to warm the clull air. The weather bureau reported the first snowfall on record in San Diego. Palm Springs, popular win ter resort, had three inches. Chinese Reds Crush Troops NANKING, Jan. 10 -(JPy- Chi nese communist troops today were crushing with smashing at tacks government island of re sistance north of Nanking which is delaying the red push to the Yangtze. (The communist radio said remnants of the nationalist force which it estimated at 130,000 men the day before were "com pletely wiped out" by 10 o'clock this morning, Chinese time.) Pilots returning from the front described the fighting as the "heaviest we have seen any time in China." Smqke from intensive artillery fire hung over the bat tlefield. These forees of Gen. Tu Li Ming numbered possibly 250,000 when they defended the former base of Suchow. They were trap ped about 150 miles northwest of Nanking in a picket three miles long and a mile and a half wide. 0 f, 'Am. i 4 X i ... K : ., C- 1 ' tteiiai Relief Due; Expects I ce Salem Low at 13; Fuel Lack Hits No immediate relief for Ore gon's biting cold spell was fore seen by weathermen today as many schools closed for lack of fuel ,and many fires were blamed indirectly to the freezing tempera tures. Record low readings struck scattered sections of the shivering state Sunday and Monday. Salem had its coldest temperatures in six- years Sunday morning when the mercury dropped to 13. Mon day's reading was warmer at 17, but the weatherman forecast a low of 15 for early Tuesday and 17 again Wednesday. Several schools were closed be cause of a lack of sawdust fuel. Children at Swegle school were sent home Monday. Dallas junior high school dismissed classes when fuel supplies failed to appear. Classes will resume today. In Lebanon two schools were due to close for the same reason and many homes were chilled by the shortage. The South Santiam river was frozen ovei completely at Leba non Monday and Millcreek through Salem was covered with a thin sheet of ice. Minimum tem peratures about the state ranged from 34 below at Austin in the Blue mountains to 26 above at Brookings in the coast. Seaside had a record low of 14 degrees Monday morning and Lincoln county schools closed because of icy highways. Grants Pass report ed a record low of 3 below. At De troit an unofficial 8 below zero was recorded Monday morning with winds drifting snow during the day and evening. Open flames used to thaw froz en water pipes resulted in manv blazes throughout the state. A $33,000 seed and feed store was destroyed at Eugene in this man ner and Portland had six fires. One fire at 1021 Mill st. in Sa lem was extinguished by firemen after house occupants had at tempt to thaw pipes in a bathroom with a bonfire. Several heating systems blew up in the Roseburg area when pipes became frozen and steam built up pressure in the lines. No one was- injured seriously al though one house at Oakland was partly wrecked. Other Oregon minimums Mon day were Seneca and Bates 30 be low, Ontario 13 below. Baker and Burns 5 below, Lakeview 4 below, Klamath Falls 1 below, Medford 6, Eugene 14 and Portland 16. (Additional weather news on page 2) at Monday V 4 o c- rppec rlrht is Gov. McKay receiving an ovation from the crowd Just after belnv sworn In by Chief Justice Hall Lusk. Second man in both pictures is Sen. William Walsh. Coos Bay, new president of the senate. Lower right photo shows some of the audience, clerks and officials listening to Governor McKay's inaugural address. (Photos by Den Dill, Statesman staff photographer). Price 5c No. 259 License Fee Act Rejected . By Robert E. Gangware City Editor, The Statesman Salem city aldermen juggled several hot potatoes at their Mon day night council meeting in city hall, and most of the act will be continued. Several pending license fee bills were killed in favor of renewed attempts to establish a city-wide occupations tax system to collect fees from virtually all businesses, after strenuous objections to fee proposals were voiced by" Restau rateur Ralph Nohlgren, Duckpin Operator Tom Wood and Alder man Thomas Armstrong. City Manager J. L. Franzen was instructed to draft an occupations tax system appropriate to Salem, with an estimate of how much re venue might be raised. Action also was delayed on a committee recommendation that 17 city firemen be added and all firemen put on a 64 - hour week, beginning March 1. Some aidermen questioned the availability of funds when Arm strong's committee suggested that fire department general funds or other moneys unused by the end of the budget year June 30 be used to pay the additional firemen un til a 3-mill levy for additional firemen can take effect July 1 The measure adopted by city vot ers in November sets a shorter work week but does not provide for paying extra firemen needed before the levy operates. Another controversial issue was left to die when all aldermen pre sent but sponsor Albert H. Gille voted to kill his resolution that the city force Oregon Pulp & Pa per Co. and Salem Iron Works to remove installations from i never - opened but never - va cated block of State street west of Front street. In . traffic matters the council deferred changing city bus loading areas, ordered bids for widen ing South River road from Miller streets to city limits, heard that south Salem merchants are 'pre pared to support setback ' lines looking to eventual widening of South Commercial street and ta bled a bill to revoke an Oregon klectric sperr track franchise ser ving Larmer warehouses, provided the railroad improve drainage be tween its two spurs at Broadway and guberty streets. (Additional council news page 2) CROSSING WRECK FATAL PORTLAND, Jan. 10-(jP)-A train-automobile crossing accident here today killed Willard Bram ble, 64, who was driving to work from his Portland home. Ceremonies II - I'M i-fT1 I McKay (LPrsces a" SSDOITD Leaders Named B v Houses: Pa v Of Help Raised By Lester F. Cour Staff Writer. The Statesman Oregon's 45th legislature was off to a fast start today. It's formal organization proceed ed exactly on the basis of pre-ar ranged plans when the two groups met for their first formal session Monday morning. Sen. William Walsh, 45, of Coos Bay, veteran of four sessions, was sworn into the senate presidency (in effect becoming lieutenant governor) by Judge Hall Lusk. chief justice of the Oregon su preme court, and a few minutes later in the house similar ceremon ies by Judge Lusk formally made Rep. Frank J. VanDyke, 41. of Medford, speaker for the 1949 ses sion. Van Dyke has served in three sessions. The gavels were turned over to Walsh and VanDyke. respectively, ok ttr A . m v j . Dy oen. uean waixer oi indepen dence, temporary senate chairman, and Rep. Harvey Wells of Port land, temporary house chairman. The results were assured at sep arate senate and house caucuses Sunday night when no opposition to the candidacies of the leaders appeared. Urge Expedited Action Both Walsh and Van Dyke ex pressed appreciation for the hon or accorded them and both ex pressed hope that- what admittedly would be an arduous session would be expedited efficiently. The 1947 session lasted 84 days. Pay of leg islators ($8 a day) stops after 50 days. Neither the senate nor house galleries was crowded for the ini rial sessions. Other officers for the two bodies also were elected as decided at the caucuses. In the senate, Zylpha Burns, Portland, again became chief clerk; Mrs. Amelia Eisenhauer, Portland, assistant chief clerk; Mrs. Helen Stevens, Portland, cal endar clerk; Banks Mortimer, sergeant-at-arms; Rex Adolph, Sa lem, doorkeeper; Gordon Barnard of Salem, reading clerk, and W. K. King, trine vllle, mailing clerk. All but Mrs. Stevens and Mrs. Eisen- hauer served In the 1947 session. Committees Formed Officers chosen by the house were: Chief clerk. Claribel Buff, Portland; assistant chief clerk. Pa- tricia Sherman, Portland; reading clerk, Rollie Truitt, Portland cal- endar clerk, Edith Bynon Low, Brookings; sergeant-at-arms. Joe Vogelsang, Portland; mailing clerk, Josephine Peterson, Salem; door keeper, Albert Nelson. Portland. Walsh was nominated for the senate presidency by Sen. Carl Engdahl of Pendleton, his chief opponent for the office. The nom ination was seconded by Sen. Howard Belton of Canby, presi dent at the 1945 session. VanDyke was nominated for Coos Bay, seconded by Rep. Paul Geddes of Roseburg. Election and swearing In of the president and speaker was follow ed by acceptance of rule changes and the announcement of commit tees. The house in its Sunday caucus voted to accept an offer of Secre tary of State Earl Newbry to pro vide attendants who would park legislators' cars. The senate de clined the proposal. Clerks Get; Boost Pay raises were voted . for all clerical help in both senate and house. Chief clerks in both bodies will receive $18 a day. instead of $15, with other increases in similar or siignuy smaller proportions. Senate secretaries were voted $8.50 day. house secretaries $8. Pre vious pay was $7 for both. The 30 senate committees of last session were continued, in tne house the committees were In creased from 24 to 25, the natural resources group being split with fishing in one committee and for estry and mining in another. Committee appointments were announced Monday, with "Sen Dean Walker. Independence re publican, and Rep. Henry Semon, Klamath Falls democrat, heading the ways and means groups in the senate and house, respectively. (O t h e r committee appointments page 3). Third Man Arrested In Portland Slaying PORTLAND, Jan. 10-4P-Police arrested - today the third man sought after the uptown slaying of a Janitor here a week ago. They said Normal Carroll And- rus. 23. Portland, gave himself up after reading that he was known as a participant. Weather Max. ... JJ aa Win. Predp. IT Jf I JM 34 M SALEM Portland San Francisco Chicago ...38 Trace New York 44 . 39 J00 Willamette river 18 feet. Forecast (from U. S. weather bureau. MCNary field. Salem ) : Fair today and tonicht with variable4 high cloudfnesa tonight. High today near 39. Low to night near 17. SALEM PRECIPITATION (Sept. 1. t Jaa. 11) . This Year Last Year Average 18 .IS VBUUjue wa uuuiuiaicu iui rn fry Hf 1 I uuiuun in Slate pUDUCBUOhS anJ speaker by Rep. Ralph Moore of 1 O lleSUIlie MOlMlay reports; cooperate with nelghbor Coos Bav. seconded br ReD. Paul I J imr state nn th miMiinn Record Qaoidk Tax pemininig Sister State Session Riled OLYMPIA, Jan. ID -VPyirvo protests were dumped into the Laps of the legislators today as the 31st session of the Wash ington state legislature official ly got under way. One postponed at least tem porarily the seating of Carl' R. Lindstrom, democrat, as senator. The second was a re quest by Land Commissioner Otto Case that they not con firm the election of Jack Taylor as his successor. The protest on Lindstrom'f election was brought by his re publican opponent C. Christian Eriksen, on grounds that Lind- strom was not a bona fide re sident of Tacoma's 27th pre cinct. . Case, who switched from the democratic to republican party in his campaign, asserted in his petition that Taylor made un fair assertions in his campaign advertising. TmTlwVri ' TIT mv rower n ear Collapse; Cut In Use Urged SPOKANE, Jan. 1-P)-The Pa- cific northwest's vast power sys tem hovered on the prink of col lapse tonight and officials warned that a new crisis would develop tomorrow. Power failures throughout the area or in any parts of it could occur without warning, a utility spokesman said, as the northwest power pool approached the break ing point in its generating capa city Consumers' were urged to cut use or electricity drastically, not only from tne 4:30 to 6:30 p.m. "peak period. but. throughout the 07- Marshall Blair, supervisor of systems operations for the Wash I msw -uw munimaj, mu ington Water Power company, said ln power crisis would continue ion " now or water a win- dies in northwest streams. Pro- longed cold weather has frozen the nvers. xne reaucen stream now cuts down the power making capa- city or generators. Cooperation of consumers In prl- vat homes who turned off extra lights and electrical appliances was credited with preventing a breakdown in the system tonight. As an Indication of how near the pool was to the breaking point. frequencies dropped from 00 cycles to o9Vi late Monday causing elec tric clocks to run slow. Fertilizer Output Fertilizer production at the Col umbia Metals plant in North Sa lem will be resumed next Monday, it was announced yesterday by A. W. Metzger, vice president and gen eral manager. Output was halted several weeks ago when the shipping tieup left no warehouse space available. Visitor at the plant Monday was D. S. Dinsmoor, director o-devel- opment for American Potash and Chemical corporation of Los An geles. Initial Bills on Divorce, Tax, Retirement; SteelliammeriFirst Ren. John Steelhammer of Sa lem introduced the first bUls.of the 1949 Oreaon leeislatore'Mon- dav. submitting; measures In . the house to repeal tne state wiinnoia- ing tax and to provide for inter im utory divorce decrees with a six-month waiting period. Also introduced by Steelham mer was a measure to repeat a section of the state birth certifi cate in order to bar the designa tion of "illegitimate" from appear ing on such public records. A senate bill introduced by Sen. Frank H. Hilton of Portland would amend the state retirement act, permitting persons over the age of 65. if they choose, to remain on the job if capable of performing their duties. The tax measure would repeal a law passed m tne 1V47 legisla ture providing that employers must deduct one per cent of their employes' wages for application against state income taxes. The measure has been branded by ' many employers and Gov. Douglas McKay as "unworkable." The divorce measure would re place the present absolute divorce decree with an interlocutory (con ditional) decree and forbid bigamy law marriages in any state until six months after the interlocutory decree is granteo. Under the present law, legisla tors have pointed out, persons re ceiving absolute decrees may mar ry in other states betore tne re quired six-months waiting period expires and cannot be punished by Oregon law. Children of these Budget m (Story in Column 2) Change, State Salaries Br Wendell Webb Managing Editor. The Statesman Expressing a "firm conviction that Oregon can and will solve ita vexing problems" xenial. B5-veae old Douglas McKay became the state's 25th governor at Impressive ceremonies Monday afternoon. The Salem automotive I dealer. war veteran and former Senator, sworn in to high office by Chief Justice Hall S. Lusk, called for immediate legislative attention to making corporate and personal in come taxes available for general use; financing of a state f school and institutions building .program from current tax surpluses! rerieal i . . . m i-f Proposes Funds Higher 1 3 of the withholding tax! averan ' pensions of $50 or mere, and . in come tax exemption for unusual medical expenses and life! insur ance premiums up to $250 annual ly. 1 " i I . . . His Inaugural was held fin the hushed chambers of the lammed house while hundreds unable to find seats or standing room heard his talk in the corridors and ro tunda on a public address system. The governors address was the final event on the afternoon pro gram, and followed a farewell talk by eetiring Gov. John II. Hall, who called for similar changes! in the state's tax structure, declared its financial status was "precarious," ' and ! promised "to . continue to do " everything in my power to furth er the interests and promote the weiiare of my native state" The ceremony included the es corting of supreme court justices and state officials to places of honor; a vocal solo the nation al anthem by James McMullen of Junction City; invocation by Dr. inester Hambtin of Salem; formal announcement by Speaker) of the House Frank VanDykethat Mo- I Kay had received a majority vote. I na tne aeciaratlon by t Senate President William Walsh that Me ivay . now was governor. . ... . Walsh presided at the Joint sen ate-house session held for the in augural, t.-l.. McKay. In enlarging on his con- i , wmun un ma con- lempiaiea Brogram, said nis pro- posass woum ieaa to a balanced I state budget He advocated state salaries commensurate with Indus- " i( removal oi nuig control irom I department of agriculture; iiugnway moaernization program with Increased gasoline tax and I registration fees if required: plac- I or liquor revenues In the gen- erai runa, ana paying of old-age assistance from that fund, and in creases In Industrial accident bene" fits. i lil' He also urged extension' of th. fish and game program, but with hunting and fishing licenses kept "within the reach of all"; amend ments to the motor transportation act to provide more revenue: re duction In state publications and light savings time to prevent par tial aaopuon. and the fullest use of "our greatest , natural resources water." I t .. In the latter connection, he said he Planned to call a meeting of all agencies relating to conserva tion! and water power to serve as the governor's-advisory board in furthering a coordinated and inte grated effort. Regarding power, he said hydroelectric energy "was "the backbone of our industrial future-. (Additional details page 3) marriages must be made! legiti mate each session by a special curative act legalizing the mar riages. The retirement bill would per mit state, county and city workers and: teachers to continue 'on the job after reaching the 63-year age limit if they are physically and mentally able. ! - (Additional details on page 3) Animal Crackers By WAPREN GOODRICH "Mtyb H saves handling but H $ur is uncomfortable."; I