Weather
Max.
Salria , j
Portland 62
San FrancUco .. .. 63
Chic (To 3
Min.
Us
.11
.08
(10
JJO
Baseball Time!
Sports Editor Al Lightner tells
11 about the Salem Senators in
The Statesman's new 16 - page
comic-feature section Sunday.
89th YEAH
Cherryland Fete
Soviet Otter to End
Blockade Rumored
By Thomas A. Reedy
BERLIN, April 20-iJPy-A high German official declared today
Soviet Russia is ready to propose a German settlement, including
lifting of the Berlin blockade, if the West will bar Gerrhany from the
North Atlantic Alliance. f
Confirmation was lacking from allied authorities. Gen. Lucius D.
Clay, the American military governor, said he knew of no new
DIP
0JXDO0
jjuutq
hps
fuQD
A Wood burn subscriber sends
In two cuppings about the Port
. land General Electric company.
One reports that gross income for
1948 exceeded that of 1947 by
12.6-per-cent and net income was
slightly above" that of the prev
ious year. The other reports the
filing of PGE's new schedule of
rates with increases of about t
per cent The subscriber, noting
the request for a rate increase
when earnings are increasing asks
or comment in this column, ana
himself observes that "these seem
ingly greedy policies of big busi
ness tend to turn people towards
socialism."
The hearing on the proposed
Increased rates is now being held
by Commissioner George H.
Flagf in Portland. The company
Is presenting its case. Attorneys
representing the state and the
city of Portland are in attendance
to represent the public interest.
If Flagg takes the same attitude
he has in the telephone rate cases
the electric company will have to
rove its need for higher rates
efore it gets them.
1 certainly will not attempt to
gay whether the electric company
Is entitled to higher rates: but I
can see how it may justify its
application even though its net
earnings are increasing.
The theory of rate regulation
ts that the company is entitled to
"fair return" on its investment.
What that investment or rate base
Is, often is a subject of bitter
controversy. In the PGE case how
ever values were determined at
the time of the reorganization;
so there is a tangible figure to
tart from. The company, as have
all utility companies, has been
making heavy additional invest
ment . (Continued on editorial page)
Flax Festival
Dates Revised
MT. ANGEL, April 20-(Special)
Dates for the 1949 Oregon Flax
festival, sponsored by Mt. Angel
Business Men's club, have been
changed from the first week end
In August to July 29-31. The
change was made. Festival Chair
man Harold Brenden stated, at
the request of the American Le-
fion, whose state convention is in
alem the first week of August.
' Besides the complications re
sulting from having the two cele
brations running parallel, it would
have worked a handicap on local
Legionnaires who wished to attend
the convention and are on festival
committees.
Gene Barrett has been hired as
manager for the show. He is coach
t Mt. Angel Preparatory school.
. It was agreed to have a festival
queen and court.
Animal Crackers
By WARREN GOODRICH -
'Of course as fme goes on
you can dd mort bunks,"
St
18 PAGES
Russian overtures. 3 The Russians
kept a tight silence.f A small power
consular official, however, said he
had heard the report and believed
it. l-i
The German sou re, who may
not be identified byf name, is about
as well informed as any German
in this divided icity, which is
seething with runiors of an im
pending break in the situation.
He said the Russian plan would
provide for lifting the Soviet
blockade of western Berlin, with
drawal of both Russian and West
ern allied armies -from Germany
and formation of a Central Ger
man government at a parley of
the United States, British, French
and Russian foreign ministers. He
said the plan would be advanced
by Russia herself, and not through
a satellite.
The Russian aim. according to
this source, is twofold:
1. To establish! a "vacuum"
Germany between; the Rhine and
Oder rivers, unlikely to repre
sent a threat to the Soviet Union.
2. To retire froman untenable
position and yet save face.
Evangelistic
Drive Slated by
U.S. Churches
NEW YORK, April 20-OP)-The.
biggest evangelistic; campaign ever
undertaken by the protestant
churches of America will begin
next October. f
Plans for the campaign, to be
known as the Nationwide Chris
tian Crusade, werej announced to
day. Sponsors are the Federal
Council of the Churches of Christ
in America and 15 non-member
denominations with a total of 35,
000,000 members.
The plans, two years in the mak
ing, envisage participation of more
than 150.000 local churches and
more than 50 colleges. The crusade
will coninue for 15 months through
1950. I
A federal council spokesman. Dr.
Edwin T. Da hi berg, pastor of-the
First Baptist church, Syracuse,
N.Y., said this is one of the basic
ideas behind the campaign:
"We will not hav a better Am
erica until we have better Ameri
cans." The crusade, he laid, grows out
of. th need of the church itself as
well as America s need, adding :
"The churches must evangelize
or perish. Existence of the
churches in America now is no
guarantee that the will be here
a century from fnow. If the
churches are to become strong
spiritually and numerically they
must be about theit primary busi
ness of evangelism"
Pilot Slicked Through
Door of Plane into Space
FAIRBANKS, Alaska, April 20-(JPi-An
air transport co-pilot who
tried to stuff a blanket around the
plane's drafty door was Jerked out
to an almost certain death over
Alaska waters lasti night. He fell
an estimated S.500ffeet. The vic
tim was Dave Huycke of Dos An- j
geles. a crew member of a Sour-
dough Air Transport company ;
C-47. i
Robeson Tells Pro-Red 'Peace' Meet
'U.S. Negroes Will Never Fight Russ'
By Joseph Ei Dynan
PARIS, April 20-ip)-Paul Robe
son, American negfro sjnger, told
the communist-i njpired world
peace congress today that Amer
ican negroes would never fight the
soviet union.
His resonant voic injected the
first fire into an otherwise mono
tonous opening session that heard
repeated attacks on the Atlantic
pact, the U. S. atomic policv, the
i Marshall pljn and fAng!o-Amer-j
ican capitalist imoerialism" from a
series of speakers.
Robeson brought the 2,000 dele
gates from 52 or more countries
to their feet in cheering applause
with his call for a "fight for friend
ship" with RussiaJ the "Eastern
Court Selection
16 Girls
To Vie in
Judging
I Salem Cherryland festival's court
I of five princesses will be chosen
' tonight at ceremonies in Salem
1 high school auditorium.
' Sixteen senior girls from as many
high schools throughout Marion
j and Polk counties will appefcr dur
ing the public program for judging
as to appearance, poise and speech
by a committee of three persons
from outside the two counties.
I Other entertainment on the eve
i ning's program will be a dance
revue by 200 young pupils of the
. Paul Armstrong dancing studio,
j Salem Cherrians will conduct the
program, with Charles Claggett as
i master of ceremonies. Other prin
, cipals will be Deryl Myers, King
j Bing of the Cherrians: Sidney L.
I Stevens, president of the Cherry
; land Festival association; Cedric
Reaney, program chairman; Mrs.
Arthur Weddle, princess' chaper
one for the festival association, and
Lois Eggers of Brooks, last year's
Cherryland queen.
Tickets for the program will be
available at the high cchool.
For her appearance, each candi
date will be escorted to the stage
by a representative of her student
body and greeted by a member of
the Cherrians, before making brief
talk.
Later this spring the festival
aueen will be selected from among
i five princesses.
The candidates for princess and
their schools are:
Suzanne Barnes, Salem high;
Jeannine Bentley, Stayton; Lela
Collins, Aumsville; Louise Colyer,
Gervais; Dixie Davenport, Turner;
Shirley Hammer, Detroit; Grace
Kirk. St. Paul; Margaret Mix, In
dependence; Dorothy Neufeld, Dal
las; Patricia O'Connor, Sacred
Heart; Jeaiinie Ruef, St. Boniface
at Sublimity; Marlene Rutherford,
Silverton: Calene Sawtelle, Mon
mouth; Katherine Specht. Jeffer
son; Geraldine Traeger, Mt. Angel
academy; Colleen Walter, Wood
burn. Special Tax
Election Slated
At Silverton
SILVERTON, April 20-f Special)
-Lloyd Larsen. chairman of the
Silverton district 4 school board,
said Wednesday it will be neces
sary to ask voters for a special
tax levy of $34,275.84. in excess of
the 6 per cent limitation, in order
to balance the budget far 1949-50.
The special school election has
been set for May 14.
Total budget estimated for the
coming year is $228,516.48, ap
proximately $25,000 over last
year"s budget of $202,793.06. Lar
sen said the increase is largely
due to maintenance and repairs,
neglected, during the war and
postwar period because of lack of
materials and laborers. New light
ing, to standardize the school, is
being instaleld. This year the bud
get called for $1,500 for installa
tion. Next year's budget is asking
for $3,500.
Sitting on the budget commit
tee" this year are R. B. Duncan,
chairman; Rholin Cooley, secre
tary; Harold Bartsch, H. B. Jor
genson and Carl Hande, while on
the school board are Larsen, Ar
thur Dahl, Felix Wright, Norman
Naegli and Dr. E. L. Henkel.
Dahl's term will expire in June.
SM.FM PRECIPITATION
(Sept. 1 to April 21)
37 60 40.U7 33.11 '
Democracies and a free China."
He ended his appearance by sign
ing a re-write of "Ole Man River"
which substituted the words "show
a little grit" for "git a little drunk."
"I bring you a message from the
negro people of America that they
do not want a war which would
send them back into a new kind
i of slavery," Robeson told the con
1 gress.
I "It is unthinkable," said Robe
son, that American negroes "would
go to war on behalf of those who
have oppressed us for generations"
against a country "which in one
generation has raised our people to
the full dignity of mankind."
American wealth, he Said, was
built by millions of immigrant
POUNDDD 1651
Tho Oregon Statesman, Salem,
Diplomat
WASHINGTON. April 20 Vice
Admiral Alan G. Kirk, 60. re
tired naval officer, was nomin
ated today by President Truman
as ambassador to Russia.
Adm. Alan Kirk
Nominated as
Envoy to Soviet
By Francis J. Kelly
WASHINGTON, April 20 -JP)-Vice
Admiral Alan G. Kirk,
poker-faced sailor-diplomat, was
named ambassador to Russia to
day as the United States held the
door open for any real peace move
by Moscow.
The assignment came In the
midst of unconfirmed reports that
the Russians are considering a
deal which might lift the Berlin
blockade.
Secretary Acheson declined to
comment at his news conference
today on the rumors of such Rus
sian feelers. He called attention,
however, to his comment of a week
ago that all official avenues of
communication are open to Rus
sia for any oppropriate discussions.
Kirk, 60-year-old retired naval
officer, has been serving as am
bassador to Belgium and minister
to Luxembourg. He succeeds Lt.
Gen. Walter Bedell Smith, who
asked to be relieved from the Mos
cow post and who now commands
the First army In New York.
In sending Kirk's nomination to
the senate. President Truman con
firmed perdictions, current for
two weeks or more, that the tick
lish job of maintaining contact
with the Soviets would go to the
man who commanded naval units
in the invasion of Sicily and who
helped map out the cross-channel
invasion of Normandy.
Attpscow, Kirk will not only
have the advantage of more than
three years diplomatic experience
at Brussels, but also a record not
identified with the touchiest
phases of the cold war between
the Soviets and the West. This lat
ter element was believed to have
been an important consideration
in his appointment to a position
where he may be called upon to
handle delicate and lengthy nego
tiations. Stayton Telephones
Extended to Cutoff
STAYTON. April 20 The crew
of the Stayton Telephone com
pany Is building a new line which
is being called the Cutoff Tele
phone company.
It is to furnish telephone serv
ice to people living along the cut
off road between Shaft and the
Aumsville roads
workers from eastern Europe and
on "the backs of millions of neg
roes" and "we are determined to
share this wealth."
Frederic Jolio-Curie, communist
head of the French atomic com
mission, was named president of
the congress. He opened the con
gress with a call for the formation
of peace committees in every coun
try to carry out the aims of the
congress. '
"We will show the war mongers
that they have to reckon with us,"
he said.
. His proposal fitted into forecasts
that the congress would set up a
"rally of peace partisans to per- j
for countries engaged in any war
with the soviet union. 1
Oregon, Thursday, April 21, 1949
Tonight
Job Rolls,
Earnings
Decline
WASHINGTON. April 20-(vP)-The
nation's economic barometer
continued to show falling tenden
cies today as government reports
noted drops last month in factory
employment as well as in work
ers earnings.
At the same time a federal ec
onomist warned that the country
faces an eventual depression un
less businessmen change present
plans for cutting down on indus
trial expansion.
But in the face of this. Secre
tary of the Treasury Snyder main
tained "We don't have the ele
ments that brought on depression
and depression crises in the past."
These were highlight develop
ments oh the economic front:
1. The labor department report
ed that factory earnings and work
ing hours, as well as non-farm
employment slumped significantly
last month below February levels.
The gross weekly factory earnings
dropped about $1 to $53.37, while
the average factory work week
declined from 39.4 hours in Febru
ary to 38.9 in March.
Ewan Claguc, commissioner of
labor statistics, said these decrea
ses mean a cut In the public's
purchasing power at a time when
a spring upturn in business in ac
tivity is normally expected.
2. The federal reserve board
said that business loans fell off
$84,000,000 in the week ended
April 13 to mark the 13th consec
utive drop in this phase of business
activity.
3. The agriculture department
estimated that farmers' cash re
ceipts from crops, livestock and
livestock products may be 10 par
cent less this year than the 1948
record total of $31,019,000,000. It
said the drop would result large
ly from lower farm prices.
Clague reported that non-farm
employment w h i c h comprises
about three-fourths of the nation's
workers - - fell off 150,000 dur
ing March to a total of 43,848,000.
This compares with an Increase of
300,000 for March, 1948.
Phone Company to
Seek 8395 Million
To Aid Expansion
NEW YORK, April 20-UP-Amer-ican
Telephone & Telegraph Co.
stockholders today authorized di
rectors to raise $395,000 in new
capital to finance further expan
sion ofLthe Bell system.
Theriew financing, to be in the
form of 10-year, 3n per cent con
vertible debentures, will be the
largest of its kind in the history
of the company or all private in
dustry. It will 'bring to well over $3,
000,000,000, the amount of new
capital raised since the war by the
Bell system A.T. and T. and its
telephone subsidiaries to take
care of an unprecedented demand
for new, telephones.
man
Sets Pace
The Oregon Statesman, keep
ing well abreast of the rapidly
growing area it is proud to
serve, will place Salem and
our neighbors in their rightful
metropolitan status so far as
newspaper service is concerned.
The Statesman, effective
May 2, will become a seven
day paper, publishing every
morning of the week the year
around.
The develop ment, which
closes the present Monday
morning gap in well-rounded
news coverage, follows closely
the introduction of The States
man's new 10-page tabloid
comic-feature section now a
regular part of the Sunday
edition.
Even with Its expanded
operation and new section.
The Statesman will be the
lowe st-prlced seven-day
newspaper In Oregon.
Subscriptions will.be $1.20 a
month by carrier (effective
with collections at the end of
May) and $9 a year by mail
in Oregon. The first regular
Monday morning paper in Sa
lem's history will appear May
2. For a COMPLETE service, it's
C$ QjjTf 0 u VMMulf 3I3ull
21
ODD
----- '1KriiV 'rk.L : -,. -Z"--"rr. , -Tfiarrit-
Slielled hv Reds SHANGHAI, April XO The BriUh naval sloop Amethyst above) was
. shelled and grounded by Chinese guns as It moved through the YangU
river between Nanking and Shanghai today. (AP YVIrephoto via radio from London to The? Statesman).
China Reds Drive on 400-Rilile
Front; 3rd Ship Said Under iFire
1
NANKING. Thursday. April 21
(JP-Thm eommunbti orossed the
Yangtze today.
A spokesman for the National
ist government's defense ministry
said the reds surged across the
great river at Tlkang about 80
miles southwest of Nanking, the
capital.
The ministry spokesman said he
did not yet have complete details
nor did he know in what strength
the communists had carried their
first thrust into south China.
Foreign military quarters said,
however, they believed the reds
had landed a total of 30,000 men
in the Tikang areas.
Top level Nationalist military
quarters said also that incomplete
reports indicated the reds had
made several crossings In the area
of Wahu, 60 miles southwest of
Nanking.
Nationalist artillery were firing
steadily across the river n the
Nanking area. The sound of guns
could be plainly heard in this
gloomy capital.
Government gun boa ti were
hammering at the communist side
of the river.
The reds reopened the civil war
yesterday with an offensive along
more than 400 miles of the vital
Yangtze valley.
The bubble of peace, afloat for
three months, had burst. The reds
struck after the government re
jected their latest peace offer. This
"peace offer" amounted to total
surrender.
Nanking, the capital, and Han
kow, major supporting base 375
miles to the southwest, seemed the
first objectives of red armies
1,000,000 strong. To meet
shock the Nationalists had possibly
500,000 men.
Nanking shook to artillery at
tacks from three points across the
river. Communist veterans from
the conquest ol Manchuria were
attacking on the plains before
Hankow.
The first onset is designed to
wipe out Nationalist bridgeheads
on the north bank of the Yangtze.
This great river divides the, com
munist north from the National
ist south.
HENS WORKING HARDER
PORTLANDS April 20 -Pj- An
increase in Oregon's egg produc
tion last month was reported to
day by the U. S. department of
agriculture. Hens, numbering 3
per cent more than a year ago at
this time, laid 9 per cent more
eggs. The total: 50,000,000 eggs.
Silverton to Play Host to County
4-H Spring Show Next Week
By Lillle L. Madsen
Farm Editor. Th Stateinn
SILVERTON. April 21 More
than 1.000 youngsters, their fami
lies and friends will be welcomed
in Silverton April 25 to 29 when
the big four-day Marion County
4-H Spring show will be held
here. This is the first time the
show has been held out of Salem.
Washington Irving building, a
former school buildihg now city
owned, will be headquarters for
the show and all exhibits Will be
displayed in the chamber of com
merce rooms on the second ; floor.
Because water and cooking fa
cilities are not yet available in
the building, the cooking demon
strations wUl be held In the First
Christian church, just across the
street from the Washington Irving.
Anthol Riney, Marion county
extension agent for 4-H cluo
work has been -at Silverton much! lie Tuesday and Wednesday nights
of this week making arrange- from 6 to 9 o'clock, on Thursday
ments for the show. He is being f from 9 a m. to 9 p.m., and on
assisted by Anne Bergholz, new Friday from 8:30 a m. to 3 p.m.
county home extension agent. 4-H! The home demonstrations will
clubs Miss Bergholz comes here be open from 9 a m. to 5 p.m.
front Walla Walla, Wash., where Tuesday, Wednesday and Thurs
sha has been employed. She ia.lday. (Details on larm page).
PRICE 5c
(SMsIhi Stoops
Congressman
Dies In Crash
of Jet Plane
ALBUQUERQUE. N. M., April
20-;p)-Rep. Robert Lewis Coffey,
jr., of Pennsylvania, decorated
wartime fighter pilot, was killed
instantly at 4:30 p. m. today when
his jet fighter crashed here.
His P-80 Shooting Star crashed
on the takeoff after a refueling
stop at Kirtland air force base.
Crash crews worked more than
30 minutes pulling the body of the
30-year-old first term democratic
congressman from Johnstown, Pa.,
from the twisted wreckage. Cof
fey was on a cross country profi
ciency flight.
Coffey, former air force colonel,
was enroute to Riverside, Calif.,
from Maryland.
The plane did not burn.
During the war he flew 97 com
bat missions over Italy, Yugosla
via, France and Germany and was
shot down over a German airfield.
After evading capture, he re
turned through the German lines
to Join U. S. forces.
Bankers Demand
Controversy Over
Treasurer Joh End
PORTLAND. April 20 - (JV) -
Multnomah county's muddled
treasurer situation was still un
settled today as a committee of
bankers warned they soon will re
fuse to honor county warrants.
A clearing house delegation ask
ed Commission Chairman Frank
L. Shull today how much longer
the office would be without a
treasurer. The bankers said they
could not continue cashing war
rants much longer.
Shull reported he hoped he and
democratic Commissioner M.
James Gleason could agree within
24 hours.
Shull. who yesterday said he
was considering taking the treas
urer job himself, indicated today
he had changed his mind.
however, a graduate of Oregon
State college.
The county's healthiest boy and
girl will be selected Monday from
the 70 who are competing for the
honor. There are 1,700 boys and
girls enrolled in the county health
clubs. This group is the largest
of any one 4-H project in the
county where 2.200 are the total
number enrolled.
The annual style review will
be held Thursday night, April 28,
at 8 o'clock at the Eugene Field
auditorium. The show will close
on Friday, April 29, with a big
downtown parade at noon and a
program at the Silverton armory
at 1 p.m. when announcements
of spring show winners and pre
sentation of awards will be made.
Exhibits will be placed at the
Washington Irving building Mon
day and will be open to the pub
em
WUlamett river 4 3 fM-ti
Forecast (from U.S. leather bureau.
McNary field. Salem t: qioudy with
few ahowen today and tohleht. Misti
est temperature loiy near 62 de
gree and loweit tonight riear 42. Con
dition, generally fitr fori mott farm
-tivitie today. Wind, rrioderate. s
No. 32
By Fred Hampson
SHANGHAI, Thursday.
April 21 - (P - Foreign naval
sources said a third British
warship was shelled today on
the Yangtze by communist ar
tillery. There was ho confirm
ation the craft had been hit.
First radio reports said tha
sloop Black Swan had been dam
aged and that she had suffered 19
or more casualties, j Later,: how
ever, British naval sources hero
said they had not been informed
of either damage pr casualties
aboard the ship. j
The report had stemmed from a
radio message heard by U. S. navy
quarters in Shanghai. This i mess
age told of casualties aboard the
sloop, steaming uprjver between
Shanghai and Nanking to the point
where the British sloop Amethyft
and the destroyer Consort wt-ra
hit yesterday. j j
Z Wounded
The toll in the attacks on the
Amethyst and the Con-sort was 27
dead and at least 23 wounded. 1
A British naval attache source
hn Shanghai said 17 were known
dead on the Amethyst and 20
wounded. The Consort docked in
Shanghai today and 10 bodies
were removed. She carried 16
wounded, some of (which my
have been picked up from trie
Amethyst. i -
The destroyer showed evldenca
of her engagement with the red
shore batteries but fthe ide of
her hull facing the dockyard was
not punctured. j !
The destroyer carried on a run
ning duel with the j shore-bared
guns along a 50-mile stretch of
the river. It is possible the red
runners may have mistaken the.
British warships for IChinest ra
tionalist gunboats. j
Amethyst Refloated !
A report received! from tho
Amethyst early this morning rid
she was refloated last night by
her own efforts.
The British issued a press state
ment giving this official version
of the international incident; i
The Consort was dispatched at
full speed from Nanking at 11
a m. local time, yesterday, to aid
the stricken 1,375-ton Amethyst.
The Consort encountered "ser
ious resistance" when I she came in
sight of the sloop. The Amethyst
signalled the Consort to turn back
up-river because of the. heavy
fire from shore. j j
Sought to Tow Ship j
The Consort, however, contin
ued. When the firing died down,
she turned back from a position
two miles below the Amethyst and
closed to take the sloop in tow.
On approaching the Amethyst
the second time," the statement
said, "she again came Under heavy -fire
and was forced Xp withdraw.
Steaming downriver, she en
countered brisk fire as the result
of which she sustained the m;ik r-
ity of her casualties Her coxswain
was killed and the steering gear
temporarily disabled.', '.
The Consort returned the red
fire "with her entire j armament.
The communist shelled tho
Amethyst with medium artillery
from 9:30 a.m. until noon yester
day, the British statement ! said. '
and "sniping continued during the
afternoon." I
Casualties were about 17 killed
and 20 wounded."
Make Way to Town
A message received by tho
British naval attache! said about
60 of the Amethyst's prew in
cluding four wounded weia
making their way to I the neatest
large town.
This message said the crewmen
could not return through I land
mine fields" to their ship.
The Shanghai spokesman j said
this indicated most of the .ship's
complement of about ISO men hbd
been forced to evacuatethe Hoop
temporarily to avoid jras,ualtie.
The spokesman said all ! who
could returned to the hip yt
teroay evening.