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89th YEAR
18 PAGES
Thm Oregon Statesman, Salem, Oiwgon. Tuesday, March 22 1949
PRICE 5c
No.
- It Is obvious that on of the
casualties of this legislative as
sembly will be the famed Walker
plan which allowed a .discount on
income tax bills in event of sur
plus receipts the previous fiscal
year. Actually, it operated only
two years, 1944 when the discount
was 70 per cent and 1945 when it
was 30 per cent. On the next bi
ennium it was suspended because
of use of the surplus for a state
building fund; and the 1947 legis
lature continued the suspension
for another biennium.
The Walker plan has come in
f or a lot of criticism, but that is
based largely on hindsight. If
people knew the history of this
lit of legislation that criticism
would diminish to a whisper.
It was evident in 1942 that our
Income tax structure would pro
duce more revenues than would
be needed for operating the sUte
government The state could do
no expanding in the war period;
welfare needs were not growing
because of the abundance of Job
opportunities. In the primary
campaign that year I recommend
ed a cut in income tax rates of 20
or 25 per cent.
When the 1943 legislature met
there were demands for very
drastic reduction in the income
tax, and some bills to achieve
that purpose were introduced. But
no one knew Just what the tax
surplus would be. Too heavy a
cut in rates might cripple the
treasury. Senator Walker devised
the plan for graduating the cut fcr
the realized surplus.
It was necessary to wage quite
a fight to get this plan adopted
(Continued on editorial page)
Dallas Mother,
Saves Infants,
Dies of Burns .
- DALLAS, March 21-(Special)-Savlng
three young children from
a roaring house fire cost the life
of their mother,, Mrs. Earl Little
town, who died yesterday in a Sa
lem hospital.
When the Littletown home
caught fire Saturday, six older
children got out safely and the
mother's clothing caught fire
while she was rescuing her 18-month-old
"baby and sons age 3
and 4 who were fear-stricken un
der a bed in the house. The house,
in the Cooper Hollow district sev
en miles southeast of here, was
completely destroyed with all the
family possessions.
Mrs. Littletown died of burns
in the hospital. Her husband was
Jn a Salem hospital at the time,
after a spinal operation the day
before. . .
The Littletown children are be
ing cared for at the A. B. Nickol
home nearby and the family is
being assisted by the Red Cross
and Dallas citizens.
The fire is. believed to have
started when Mrs. Littletown was
lighting a lire with kerosene.
Lebanon Peace
TEL AVIV, Israel, March 21
tffVInf ormants said today the new
Israeli - Lebanese armistice calls
for the evacuation of 14 villages
in Lebanon still held by Israeli
forces. The Lebanese now hold no
territory in Israel.
The armistice provides for the
demilitarization of zones six to 12
miles wide on both sides of the
frontier.
A prisoner exchange is includ
ed in the agreement, initiated last
night by Israeli and Lebanese ne
gotiators. Formal signing of the
armistice is scheduled for Wed
nesday. ,
The agreement is the second the
young 'Jewish state has reached
with one of its Arab neighbors.
The first between Isreal and Eg
ypt. Dr. Ralph J. Bunche, acting Un
ited Nations mediator, said at
Rhodes today that Syria has ac
cepted an invitation to talk over
an Armistice with Israel.
Animal Crackers
By WARREN GOODRICH
"Trouble is nan el them
tgrte."
Israel Signs
I PALMS I J I
REAP TV
fe5tTAV L
Mouse Boosts Jobless Benefits,
Reds Not
To Fight
MarklBan
BERLIN, March 21 -Wy- The
Russians said tonight they would
take no restrictive action against
the western ban on circulation of
the east mark in western Berlin.
The acting Soviet commandant
for Berlin said the! Russians were
refraining from counter-measures
no help the population of Ber
lin's western sectors."
Many Ber liners i had expected
the Russians to make some retal
iatory move.- I
Earlier today Russian - con
trolled German police tried to pre
vent western Berllners from go
ing on a buying spree with sur
plus east marks at ration - free
sto regain the Soviet sector.
4-Power Currency Blocked
The, western occupying powers
issacd' their "ban on the Soviet
zone : currency yesterday. They
pointed out it had not been pos
sible to reach agreement with the
Russians on a single four-power
currency for the Soviet - block
aded city. Last June the Russians
had made it a crime for anyone
to possess west marks in their
entire population zone, including
Berlin.
CoL Alexis Yalizarov, acting
Russian commandant, gave the
first official Soviet reaction to
the western ban on the east mark
in a formal announcement dis
tributed by the Soviet - licensed
news agency ADNs;
"In an endeavor to help the
population of Berlin's western sec
tors, the Soviet military admini
stration does not intend to carry
out any measures restricting the
use of the mark 'of the German
bank of emission (east mark) by
residents of the western sectors in
the Soviet sector of Berlin and
in the Soviet, occupation zone."
Red Newspapers Blast
. The acting ' Soviet commandant
accused the n western powers of
frustrating any agreement on the
Berlin currency problem by Unit
ed Nations experts meeting in
Geneva.
Russian - controlled newspapers
launched a propaganda attack
against the western allies' curren
cy order.
Western Berliners rushed to
dump their remaining holdings of
east marks. Some tried to make
purchases in Russian areas. Oth
ers lined up before exchange of
fices, f
The east mark tumbled to a
rate of six to 10 for one west mark
on the black market. Even In the
legal exchange offices the east
mark dropped to S2 for one. Be
fore yesterday's currency change
the east marks had been worth
about a quarter of the western
currency In western Berlin.
Glass Broken
To Get Jewelry
Worth $5,000
More than $5,000 worth of jew
elry was stolen from the window
of Brown's Jewelry store, 184 N.
Liberty st., early Monday morn
ing by a burglar who smashed the
plate glass with a brick.
Harry A. Brown, owner of the
store, was able to give city police
a nearly complete list of diamonds,
rings, and watches; taken by the
thief. Brown was summoned to the
store by police after Earl Sailing,
Argo hotel, informed police of the
burglary about 2 a in. Monday.
Brown listed as among the miss
ing 14 Keepsake diamond engage
ment and wedding ring sets valued
at $2,750, six Rings O'Romance
sets valued at $1,500, Shrine pin
set with diamonds valued at $150,
a man's synthetic ruby ring with
diamond set, $150, and several
other pieces. ,
The display of jewelry, highly
advertised in connection with
spring opening In Salem, was en
tirely covered by insurance, Brown
said. f
Police said the burglar was
greatly aided by failure of the
burglar alarm to gq off. The faul
ty alarm had been turned off. Po
lice said a red brick was used by
the thief to smash the window.
They said it was apparently the
work of an Amateur as the glass
had to be removed! from the mer
chandise before it could be taken.
Jenkins to Quit
Portland Police
PORTLAND, Ore., March 21-
(Jpy-Police Inspector Leon V. Jen
kins, twice chief of the Portland
department, said today he plans to
retire after 40 years of service
here. . i -
He has asked to be retired July
1. i
He was twice elected President
of the International Association of
Chiefs of Police.
eonate
'Local Option'
Control Backed
By Republicans
By Don Sanders
WASHINGTON, March ll-OT)-The
senate split down party lines
today on the merits of a house
approved plan fb let state, counties
or cities shrug off federal rent
controls whenever they like.
Republicans generally argued
in favor of the idea. Democrats
said the power to lift controls
should be given only to the states.
The present rent law expires
March 31, only 10 days away.
The senate opened debate on a
bill to continue controls for 12 to
15 months and allow some rentals
to increase 10 per cent over a
year's period.
Mr. Truman, in an address to
the U. S. conference of mayors,
had some harsh words for the "lo
cal option" provision of the 15-
month extension the house has
passed.
He said the real estate lobby is
backing it "not in order to streng
then local authority, but in order
to destroy rent control
Sen. Baldwin (R-Conn), said
that if congress gives anyone the
power to decontrol rents, "we
must fasten it on some body which
is in continuous session." He noted
that state legislatures are not.
Sen. Vandenberg (R-Mich) said
the house plan would bring "home
rule down to grass roots units.
He said if congress recognizes dif
ferences in need for rent control
among the states, differences with
in the statA themselves must al
so be admitted.
Sen. Taft (R-Ohio) said he
doesn't see that it would make
any difference if one community
had rent controls and an adjoin
ing one did not
Senators Maybank (D-SC) and
Sparkman (D-Ala) contended it
would be unconstitutional to give
decontrol authority to cities and
counties.
Hutchins Given
4-Year Term
PORTLAND, Ore., March 21-VP)
-An Oregon liquor store employe
arrested In Reno after a gambling
club spree there was sentenced
today to four years in prison for
theft of public funds.
Russell E. Hutchins, 42, who dis
appeared from his Portland store
Job December 11 with $7,115.40 of
liquor sale receipts, was dead
broke when arrested.
Circuit Judge Alfred P. Dobson
also fined Hutchins $14,230.80--double
the amount of money invol
ved and permissible under public
funds law. The defendant pleaded
guilty.
Hutchins woman companion on
the Reno trip, Gertrude Janette
Sanders, 36, has been indicted on
a charge of being an accessory aft
er the larceny.
Still Operation
Charged to
Oregon Man
PORTLAND, March 21 -UP)-
Memories of the prohibition era
were revived today in the office of
U.S. Commission Robert A. Leedy.
Federal tax agents arraigned
James B. Stonecypher, 83, Spring
field, on a charge Of carrying on a
distilling without a bond required
by the alcohol division of the
fv. He was released on bond
of $500.
eoiujntasioner Leedy was told
Stonecypher was arrested March
15 when a 50-gallon distilling plant
was found near a highway a few
miles from Springfield.
Valley Co-op Head
Quits at Silverton
SILVERTON, March 21 -(Special)-
C. A. Hande, for the past IVt
years manager of Vslley Farmers
cooperative, 734 MrClaine sL, has
resigned, it became known here
today. Hande hi -1 notified the di
rectors March 1, but if staying on
until a successor is named?
While Walter Von Flue, chair
man of the board of directors,
could not be reached tonight. It was
generally understood thai the suc
cessor would be.nesftoo' late this
week Haade, whe to aUe Ore ebief
at Silverier., says his fuMrt plans
are Indefinite but that he lab
to rest awhile.
u
Bill Seeks Full Block
For Capitol's Parking
A bill seeking an entire block
est of the capitol grounds as an
off-street parking lot for state em
ployes and state vehicles was in
troduced in the senate Monday.
Introduced by the senate insti
tutions committee, the bill pro
vides $200,000 to purchase the
block which is bounded by 12th
and 13th streets on the west and
east and by Court and Chcmeketa
streets on the south and north.
The measure was requested by
Mrs. Truman Didn't Like This
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WASHINGTON, D. C March tlThis plctare ef President Harry
Truman was taken during his
developed today that objection
president at Key West last week
to 194$ pictares of the president taken off Bermada pictures she
termed a "disgrace e the family." (AT Wlrepheto to The Statesman).
Swim Suit Photo Blamed
For Vaqatidn Censoring
WASHINGTON. March 21-WVSaid Mrs. Truman to husband
Harry just before he; went on his Florida vacation:
-Whatever you do, don't have any pictures taken in your bathing
suit."
And that, says President Truman is the reason behind the seizure
of a batch of pictures taken by newsreel and newspaper photographers
from a navy blimp hovering over
the presidential party at Key
West, Fla., last week.
"It wasn't censorship, Mr. Tru
man said with a grin, "but a safe
ty measure so I could come home."
The president gave that ex
planation at the White House News
Photographers Association dinner.
He said he had been photographed
in his bathing suit during a Ber
muda trip in 1946, and ever since
then Mrs. Truman had regarded
the picture as a "disgrace to the
family." h
White House aides demanded
surrender of the blimp-taken Key
West pictures. They called it a
security measure.
The pictures, snapped from an
altitude of 200 feet, showed in
distinct figures identified as Mr.
Truman, aides and friends float
ing in the water and laying on tne
beach.
Pilot Rescues Men
From Bering Floes
NOME. Alaska, March 21-VT)-
A score of crab fishermen maroon
ed on drifting Bering sea -ice floes
were rescued yesterday by "Bush"
Pilot Willie Joster. A motor boa i
saved the fishermen's dog teams.
A strong north wind carried the
ice out so auickly that the men
were unaware of their plight.,
ALBANIANS AT RED PA
LONDON, March 21-fP-An Al-
banian government delegation
headed by Premier CoL Gen. En-
ver Hoxha arrived r In Moscow
today to discuss economic matters
with Russia.
Saudi
Salem officials as a solution to an
acute parking and traffic problem
In the capitol group area. The
board of control would be em
powered to use the property for
a parking lot, garage or as the site
of any state building.
Introduced in the house Mon
day was a bill to appropriate 122,
500 for purchase of property at
Ferry and 13th streets,, for use
with the state heating plant.
'WW
vacation off Bermada In 114$. It
to bathing beach pictures of
traced to Mrs. Truman's objection
10th Cabinet
Member Urged
WASHINGTON, March 1-JP-
tA tenth cabinet member to handle
welfare services and education
was urged today by the Hoover
commission.
The new secretary would head
a new department taking over so
cial security, education and most
services now handled by the fed
eral security administrator. The
department would also embrace
the Indian bureau.
If adopted, this plan might move
into the cabinet the president's
good friend, Oscar R. Swing, now
federal security administration.
(Additional details on page 2.)
Max.
.S4
-S3
V'n. Precip.
SALEM
Portland
San Francisco
Chicago
.is
42
SO
43
31
.OS
.00
JO
M
.60
New York ..
.87
Willamette river tS feet.
Forecast (from U. 8. weather bureau.
McNary field. Salem): Partly cloudy
with occasional Ught showers today.
Scattered cloudineta tonight and Wed
nesday with slightly warmer daytime
temperatures. High today near 5S. Low
tonight near 37. High Wednesday near
SS.
SALEM PRECIPITATION
SeC 1 to March S3)
This Year Last Year Average
3SS0 J7.4S SSSi
;;.':- (') f
Hunting,- Fishing Fee
Truman Blames
Woe Makers,
Blasts at Lobby
By Roger D. Greene
WASHINGTON, March 21-WV-President
Truman, adopting a
strategy of soft words toward con
gress, said today he and the legis
lators are cooperating and only
"trouble makers" talk of bad feel
ing between them.
Instead of lashing out at the
81st congress for the setbacks he
has received at his hands, the pres
ident roundly denounced the "real
estate lobby" which, he said, has
proved itself the "enemy of the
American home." He said it was
trying to kill rent control and the
administration's housing program.
8trlkes at Columnists
The president's remarks about
congress, in a speech to the United
States conference of mayors, were
in marked contrast with his lam
basting of the 80th congress during
the presidential campaign.
"It seems that whenever I make
a recommendation to the congress,
many newspapers and columnists
set up a howl about the president
trying to dictate to the congress.
And then if the congress makes
any decision that varies at all from
my recommendations, these same
trouble makers start a gleeful chor
us about how the congress has
thrown the whole democratic pro
gram overboard."
Mr. Truman spoke against a
background of three recent devel
opments: 1. The house shot holes in the
administration's rent-control bill.
2. The senate rejected an anti-
filibuster rules change sought-by
the administration.
3. A senate committee rejected
7-8 President Truman's nomina
tion of his friend, Mon C. Wallgren,
to be chairman of the national se
curity resources board.
Agreemente Mere Plentiful
Mr. Truman made no mention of
these developments. Instead, he
told the conference of 600 mayors
"Of course, I differ with the ac
tions or tne congress on some
points, and where these differences
are important I shall continue to
urge the course I think is right
"But basically the congress and
the president are working together
and will continue to work together
for the good of the whole country.
We are eolne to affree on lot more
I things than we disagree on.
SHS Speakers
Compete Today
Salem high school speech stu
dents, coached by Amanda Ander
son, will enter district speech com
petition at Linfield college at Mc
Minn villa today. The speakers.
chosen in recent lntraschool elim
ination contests, will compete with
Albany and Dallas students to gain
district titles for the state tourna
ment April 8-9 at Oregon State
college.
Salem high representatives are
ATtMniwiM nMlrlfitf tV 1 1 t7
oratory, Una Mae Grayless and
Eugene Poindexter; panel discus
sions, Frank Vitaris and Una Mae
Grayless; after dinner speaking.
Tom Schiedel and Roger Smith;
radio speaking. Waiter Friesen and
Mauriel Steusloff; poetry reading.
Muriel Steusloff and Catherine
Person; humorous reading, Cath
erine Person and Walrer Friesen;
impromptu speaking, Phil Ringle.
House Approves
Limiting Fishing
On Mill Creek
Mill creek reaolly wiU be a kids'
playground, if the senate affirms
the favorable vote given the pro
posal by the house Monday.
The house unanimously passed
a bill, sponsored bv the entire Mar
ion county delegation, which closes
the creek to fishing except by ad
jacent property owner and by per
sons under 18 years old.
Rep. Douglas Yeater, who aided
in getting the bill through the game
committee and explained it on the
floor, said it was contemplated to
amend it to permit fishing by per
sons over 65. The amendment will
be sought in the senate.
Crash Kills Woman;
2 from Salem Hurt
TILLAMOOK, Ore, March 21-()-Mrs.
Myrtle Lander. 64, Van
couver, wasn, was sailed wnen
her automobile collided with a
garage tow truck south of here
yesterday.
Two . Salem women were pas
senfers. They were Mrs. C. L. Gal
loway, 60, and Mrs. Blanche Riggs,
(7. Both were Injured.
capital runishmenfc
.Referendum Beateii:
I L f -
Bonus Debate Today
By Wendell Webb
Managing Editor. The Statesman
An increase of nearly 81.000.000 annually in unemntnvmont
fits and a 33 per cent boost in
approved by the house and sent to the senate Monday as the legisla
ture waded into what members hope will be the final fortnight cl the
session. I '
A proposed referendum to abolish the death penalty was bealen.
The vote on the omnibus unemployment benefit bill was 57! to L
It came after the house beat down attempts to include cooperatives
and to limit the bill's application to employers of four or more persons
(instead of one or more). The benefits are increased from $20 a week
President Asks
Quick Okeh for
Atlantic Pact
WASHINGTON, March 21 -VP)
An appeal by President Truman
for quick senate action on the
proposed north Atlantic defense
treaty was disclosed today by Sen
ator Watkins (R-Utah).
The president, in a letter to
Watkins, said he hopes senate ap
proval of the pact will be "as
expeditious as is consistent with
full consideration" by senators
and the public.
He said "I do not agree" that
there should be a 60-day inter
val between publication of the
treaty and signature, as urged by
Watkins. The text of the proposed
alliance was made public March
18; it is scheduled to be signed
April 4. But it cannot become ef
fective until the senate ratifies it
Mr. Truman said he wanted to
call Watkin's attention to the ex
tent of cooperation between the
senate and the administration In
drawing up the north Atlantic
treaty.
However, Watkins still demand
ed a 60-day delay before the sign
ing. On March 7, he had written
Mr. Truman protesting that the
senators had been kept in the dark
during the prolonged negotiations.
He questioned the meaning of
article five which provides that
an armed attack against one of
the signatories shall be considered
"an attack against them alL
Watkins also asked:
would a communist govern
ment be welcomed as a member of
the pact? Should means of expel
ling such nations be Included In
the pact?"
Commies Cited
As fKey Men9
To Revolution
NEW YORK, March 21 -V(y
The trial of 11 top U. S. commu
nists finally got under way before
a Jury today with a government
charge that the defendants hold
the key to an American revolu
tion.
The 11 can set the time for an
uprising of "force and violence,'
U. S. Attorney John F. McGohey
said in his opening remarks to a
federal court jury.
He accused the defendants of
teaching in classes, and schools
that the overthrow of the U. S.
government must follow the "clas
sic model" of the 1917 revolution
in Russia,
The defense, through Its chief
spokesman, went before the. Jury
in turn to insist that the ' party
never has raised a hand against
the U. S. government.
Eugene Dennis, secretary gen
eral of the communist party in
this country, said the party con
sistently has taught the support of
the u. S. government.
"It is a matter of public record,1
said Dennis, who is acting as his
own attorney, that we supported
the Roosevelt administration and
vigorously campaigned for his re-
elecUon.
Inspection Due
Guard Units
Salem's national guard unit
spent Monday night's regular drill
session sharpening up for the an
nual federal inspection scheduled
for Wednesday afternoon and eve
ning.
Col. John Keliher. assistant In
spector general of the 6th army,
and another inspecting officer, will
be in Salem Wednesday to check
companies B and G, 162nd Infan
try regiment, and headquarters
detachment.
Aadministration and supply in
spection will be at 3 p.m. and
training Inspection wiU begin at t
pjn. In the armory.
bene
huntine and fishin-
lor ZO weeks to $23 a week for 26
weeks, with a minimum of $13 in
stead of $10. j j
The game program, comprising,
six bills, was approved over the
protest of southern Oregon repre
sentatives who objected to (dou
bling the fees for out-state hunting -licenses.
(Details on sports page).
Bonns Debate Today j i
The house defeated the muvf to
refer to the people a proioied
amendment barring the death pen
alty by a vote of 32 to 27 and thus
over-turned a favorable margin of
21 to 8 given by the senate.
The house also passed and sent
to the senate a bill increasing
from $33 to $50 a month the state
educational aid for veterans, but
postponed until 10:15 a. m. Jot! ay
consideration of the measure pio
viding for a veterans' bonus. ,
Meanwhile, the senate gave fi
nal approval to a house joint its
olution empowering the.jttal
board of higher education to re
fund a $7,200,000 bond issue with
$10,500,000 in revenue bonds and
use $2,300,000 for new construc
tion. It also voted to send to the
governor the house -passed bill
reorganizing the game commission
but reduced the commission j irom
seven to live members. The bill
now goes back to the house i for
concurrence. I ,
Code Revision Backed j ';
Also passed by the senate and
sent to the house was a measure
permitting the hiring of an expert
to revise Oregon's law code and
the appointment of a seven-man
committee to aid in the prepara
tion of bills. j ;
New bills continued to be ; in
troduced Monday, one in the house
asking an appropriation of $22,500
for state purchase of property at
13th and Ferry streets in Salem,
for use as a heating plant or ither
state purpose, and one in the) sen
ate providing for a parking lot for
state workers in the block bound
ed by Court, 12th, Chemeketa and
13th streets, with a izuu.uuu ap
propriation. :
Other new senate bills would
bar construction of dams on trib
utaries of the Columbia river; (ex
cept the Willamette) pending ' a
report of an interim committee on
their effect on fish (thus blocking
a proposed dam on the Deschutes),
and create committees to Study
state labor laws and the possible
consolidation of the governments
of the city of Portland and Mult
nomah county. I x
Longer Trucks Killed
Defeated in the senate was
bill extc- -g from 35 to 40 feet
the. legsl jth of a single-thesis
truck vv bus. i ;
Both houses have heavy calen
dars today. ! j
Besides the bonus but, the house
will consider such measures, as
limiting sales of fireworks j -restricting
catches on the Rogue riv
er, and adding a cent to the tax cn
aircraft fuel. ! ,
The senate has before it meas
ures providing for annual, instead
of biennial, teuton of the legis
lature.
Both the senate and house wiU
resume at 10 a. m. today. j J
(Additional details pages 3, )
T
Tank' Topic foij j
Reservists Meeting
"Employment of Organic Tanks
in the Infantry Division" w 131 be
the topic of the special meeting
for organized reserve personnel at
Bush auditorium Wednesday night
Fifth In a series of augmentation
training sessions, the meeting; will
becln at 8 o. m. Proper rrtsry
Identification will be requi fo
admittance.
Home Ownership
Increases Savin
When you buy your home
Ku pay rent to yourself,'
ome ownership pays big
dividends in happiness, in
dependence, prestige, secur
ity and multiplied savings. .
I !r
This year hundreds of Sa
lem families have wisely de
cided to pay rent to them
selves and buy homes out tl
income. Increase year sav
ings by buying year home.
A wide selection of Salem
best home valaes are de
scribed la The Statesman
Want Ads. Shop them. f
i -