Muss-West (Dispute over IBeirlion (Export PoOicyj' Appears Solved' jReds Block i 'Kiss for First Blockade Buster t9th TEAR PAGES Thm Orayoa Statesman, Salezxu Oregon, Friday. May 13. 1S49 PRICE No. 53 Trucks; Order Said 'Mistake' Stoicatcay Umh off Fairest Flires Plagaoes State POUNDID 1651 ; ; . ff" ,. ' .7 ' . , 5 L rr'" " j .t. - BERLIN. May 12 A pretty Germaa girl has a kiss and Hewers - for the engineer f the first train ta reach Berlin after blockade f the eity wu lifted. AP Wirephote U the Statesman.) Attempt Made to Block Formation of Bank in Salem, Meeks Asserts SAN FRANCISCO. May 12 (AP Two independent Oregon banker testified at a federal reserve board hearing today concern ing Oregon activities of Tranfimcrii a Corp, ;;. The board it hearing monopolistic te: dency charges brought against the big bank holding company under the Clayton act It is the first time the act has been uxtl against a bank holding company ' G Carroll Meeks, president of mmmmmmmmmmmmmmmmmmmmmmmmmmmm a"j ; I pi I I ' I y I ; 0GQDXJ3 About all that President Tru man will get out of the 81st con gress before it adjourns for the summer will be extension of ECA and of rent control and probably ths ratification of the Atlantic treaty. Other major items are eith er out of the running for the year or will hot be enacted unless there is a special session in the fall, as has been intimated. Time has run against -much of the president's program. His guessing on the economic situation was wrong Even leon Keyser ling of his economic council, who argued for controls against infla- 41nn u-Kn rtni7r rnnv.nwi is talking out of the other side' of j his mouth now. No new controls j ...;n v .r.H ih. .nui.i ers given the federal reserve board for credit controls will ter minate June 30th. It is possible that a revised law for reciprocal trade agreements will be passed, on the old Hull pattern; but cour age to open doors for foreign goods will ooze as competition at home tightens Check the , catalog of the pre sident's askings. 1. Repeal of Taft-lUrl'.ev law Clear out. The Wood bill, a dixi gop creation is back m house com mittee. The senate committee has n't sgreed on any labor '.crij-U-tion. Unions are losing their fight, and a revised bill will still carry some UEion hobbles. J. Housing The senate passed a generous housing bill, with repub lican support. The house w ill probably hold it in committee til fall, but some housing legislation Is almost sure to pass 3. Farm legislation Senators Aiken of Vermont and Anrieison ef New Mexico (former secreLiry of agriculture) agree that the Brannan plan will not be adopted this year. The Aiken -Hope bill w ill stand though modifa a;.on up ward of parity rates may con 4. $4,000,000 tax increase Chair man Dough ton of was and means committee says no tax bill this year. 3. Social seeuntv. Money pinch hurts prospects for all (Continued on editorial page) Animal Crackers WASREN GOODCiCH rec'j-ey w c the big Or. tint got swsf v. ? S m "' r - the Willamette Valley bank at Sa - lem. related that representatives of Transarnerira owned banks tried to discourage the launching '. oi tne Dan in j4 .. John L - -'Searcy, vice president of the Corrimercial National Bank of Hillsboro, testified as the m teiest of First National Bank of , Portland, "jransamenca owned, in ! acquiring the Hillsboro bank. ; The witnesses' were put on the . istand by J. Leonard Townsend, ' board counsel. , j i In his direct ; testimony Meeks ; told of conversations in June, 947 ; With a man named "Sientz" and with Harold White, an officer of ' the Transamenca owned Benton j county State Bank of Corvallis. j Ex pressed ' Itonbt He said Slent told him it was the opinio! of E. F. Slade, vice president of the Portland First National, that an independent ' : bank would not be able to serve , the Salem; community adequately - and efficiently, i The conversation ! was about two Weeks after publi cation of intentions to start a bank. A similar suggestion. Meeks said, came' from. White in a meet- inS few days Jater w hich White had requested. ; White suggested that he con- sider withdrawing his application for a new bank and cooperate with Portland jTirst National, the wit i ness continued. White indicated. Meeks said, that a position would be open for hint in that bank and within two years he would be made manager of the Salem bran ch of the ;Portl?nd institution. To Confirm Statements Mks Said he then went to Portland to see; Slade to confirm the statements , made by Sientz and White. Sladf told him. he said, that he hiid made the statements in fc.d fjiith and that White had been authorised" to make a propo sition to bim ' Samuel B. Stewart. Transameri ca counsel, brought out in cross examination that Meeks W-s em ployed wth trie Oregon state banking dep.it llrietit at the tn:,e Me ks soifd he h.-ni no "actual know leiigf' thai an application for a Salem branch of the First National &i Portland was pending wheu he inaue his own applica tion i Su wait, developed from both Mei-ks ui Sear y th,t their banks were growing despite competition (tiii8!Airoai'h Shanghai Airport' SHANGAI. Friday. May 13-.-Auhne pilots tvav reported thev saw small rants fire a '.r.t 10 miles ftoin Shanghai's main air port. li.s.ant expis in could be beats at the arport. Lu:iB-ha. That is where Chinese and In ternational aid 1 nes take off v ;t refugees tr:m f ;s mer.-ced ci'v. DetpiteS the ae.rr-e? of att. a er. ail ii iusei were operating. BKIT1SH RATIFY TACT U)MN. Mav 12 -J-- The hcse ef ebmnjn -i erwl e ri r.x'y ratitted the Nqrtl Atlantic tie ty tonight. Tne vbte was 333 to 6 Immgmmmmmmmmmmmmmmmmmmmmmmtmmm Pre-rip. SalrM jf,.. HrUn 4-. t Clurace (, X- ? K ra . va M 53 S4 O .!'' W Wi'Uiiwtti. iivt 4 3 fees rORrCASr 'twn V? th.r tu-r-J. McNarT tuilrt. StTi: Centtili tu ;. nl i l nS! Hijri ! wtr t" tw lfirH ttrmr il. A ri (u'tutil cocJ:t -4; eontisu (uod for U farro aetiities SAUUM rtCKClPITATIOM Tta t r Hi H Ul Yew BERLIN', rriday. May 1J A major difference between the western allies and Russians over Berlin's exports appeared today to ha-e been solved. The Russian yesterday had re fused to allowr trucks to leave western Berlin for the western occupation zones unless thev had a permit either from the Rus j sianr or the Russian-backed Ger i man economic commission. Bu earlv todav ft Berlin j pohre quoted the officer in chnree jo? the Rusian highway check point outride Berlin as saying only an orcer from the rvest Berlin! government w as required for j nassage of the trucks through the' Russian rone. Western Berlin is separated J from the rest of western occu i pied Germanv by 100 miles of Soviet -con trolled territory Whether the Russians actually . j have dropped their demand for ! a Russian license w ill not be ; known before daylight todav when trucks aeain try to get through the Russian checkpoint. If Soviet authorities enforce! their claim to authority over western Berlin's exports they rould keep 2.000.000 residents cf the American. British and French sectors of the city on a basis of "virtual charity." said Brig. Gen. i Frank L How-lev, American com- ; mandant here. He declared west-' em "Berlin '"must export to the west to live." The Soviet blockade of western Berlin and the western allies' , counter blockade of the Russian zone of Germany were lifted on schedule all along the 1.000-mil German cold war front American and British airlift crews kept flying supplies into Berlin at the rate of nearly 500 tons an hour and expected to keep on doing so for another 30 days. Mrs. Fox Joins Marion County School Staff Appointment of Mrs Floyd Fox of Union Hill as a member of i the Marion county educational board was announced Thursday by Mrs. Agnes C. Booth, county school superintendent. She re place V,'. p. Emery, who resign ed after moving to California. Mrs. Fox, who is a member of the school board of Union Hill district 42C. taught school for several years in Multnomah county after graduation from Oregon College of Education and University of Oregon. She was a 4-H leader for 13 years and has been president of the Mar ion County 4-H Leaders' associa tion. The new director Is also on the county agricultural planning board and a member of the gov- ! ernor's state committee for dis-' placed person. She has been ; chairman of the county farm. 1 home and rural life committee. The wife of Floyd Fox. sr.. she is the mother of two children. Other members of the board are Mrs Genevieve Oldenburg of Keier, George W. Hubbs of Sil verton. Harley W Libby of Jef ferson and Mrs Booth. riietiiployiiieiit in Eat Linn (lotmtv Shrinks ALBANY, ment in the May 12 1'iemploy e.s!er Linn rountv area has shrunk to tH MiO from a ms.i-u ir.fer peak o' l.eoO. E. G. Slo-.n. m. - aeer f the loc! t..e emi lov nu t t offiie. r, n u n c e d Thursday . Operations of tne logging indus ; try t r.e..r .-it.d on u,ti:ge m o ca! build.--! h.4 i --ctribi.ted to :h increase availaOie j"Os. Sion said. Iretlirl Tim (Jiang? t" WEST SALEM, May 12-Maydr Walter Musgrave predicted today that this city will go on daylight saving time next wrek, when Sa lem make the switch Musgrave has called the city council into special session at T p. m Fr iav to consider a time change at d to discuss p.ssible new jffers for pun hase of city -owned nrplu steel pipe. Admitted Commie Given Scholarship WASHINGTON. May 12--An acknowledged cvmmunit turned up today with an atomic energy commission .cholarship. given ham vi'i;uuiviun t sveiy at gpvemment Memriers of rtfgres protested the aw:d to Hans Fret-,tadt, a graduate -lucent and part - time physics teacher at the University of North Carolina The atomic energy commission said the awards are made without a security checkup when no ato mic secrets are involved. Other wise, it said, "freedom of, inquirv i and education" would be menaced. Commission Chairman David E. Averasc j Libenthal said the scholarship pro X.u if ram is administered by the n- I 1 IP if .vrbb& NEW YORK. May It Ger heart Elaler (ibovc), detwribed as me of the top alien Mmmaatata in this eenntry. addresses a May i rallr in New Ysrk City'a I'bIm Sana re sa April St He la nw en rtnit ts EnUnd on . Palish steamer as s stow away. (AP Wirepnto ts Statesman.) tne Scotland Yard Men Awaiting Eisler s Arrival i WASHINGTON. May 12-i-A j stowaway aboard a Polish ship en route to England was "posi- tively identified'' today as the 1 mising Gearhart Eisler. 53. al- leged former No. 1 ! in the United States. communist i U. S. Immigration Commission ; er Watson lllle told newsmen there was no question about the identification. Miller said Scotland Yard de tective are waiting for Ei-ler's ship, the Gdynia-American liner Batory, to dock at Southampton. England. It is due here Saturday. Justice department officials lm- j mediately opened an investigation into Eisler's disappearance. The Batory sailed from New York six days ago. Eisler if it is Indeed he skipped the country under two jail sentences a one-year term for contempt of congress and a one-to-three year sentence for con oealing hi communist connec tions in applying for a permit to leave the LTnited States. He had been free on $23,000 bail pending his appeal from both convictions. Men Needed to Work in Fields Thursday morning the supply of farm labor hands at the state em ployment lacked 20 men of being enough. W. H. Baillie, manager of the Salem office said. With hop yards, strawberry patches and general farm crops work ge'.t'.ng under full headway with the advent of excellent grow ing weather Baillie urges all who wish employment in this line to report earlv each morning at the office at Cottage and Ferry streets. Cherry growers are among the group worrying over the possible labor shortage Men wishing jobs should report by 6 a m. and have iunt hes. the agency urpe. Slots Reappear Near Portland PORTLAND. Mav 12 -tF- A report that slot machiries have re appenred in a few private Eo!f clubs tust tmtside Portland drew a "haven't hesrd of it" response from the sheriff today. Sheriff M L. Elliott said hi men have found no slot machines n public places, but can not check priva'ely-owned clubs without a search warrant. "If someone wants to s:gn a complaint against the clubs," he said, "we'll do our jobs " by A-Board tional re-search council and the commission does not influence selection of fellows (scholarship holders. ) Freistadt toid reporters the ap plication for the scholarship did not mention "political affiliation." He is from Austria. He said he joined the communist party after . becoming naturalized several years j ago. Dr. Paul Sherin. head of the University of North Carolina's physics department said Freistadt's scholarship calls for work in re- ; latively and doe not involve sec rets. Freistadt, a University of Chicago graduate, said the scholar ship is effective next July L His , affiliations were disclosed to the ' house by Rep. Col (R-NY). CoOtminrDlboa Dikes Washed Out by Creek Near Union Bv the AworUM Frea The hct sun beat down yester day and Pacific northwest rivers rose up. toward flood stage. The mighty Columbia river was swollen but most of the flood threats were concentrated along its upstream tributaries in eastern ! Washington and northern Idaho. Bonners Ferry, Idaho, waged its ' almost annual battle to save the j dikes. Two bridges were closed in I Okanogan county in northeastern ' Washington. i ne w enatcnee river lapped at aixe tps at Cashmere, Wash. The Twisp river spilled over its oanKS in Tne Melnow valley or Washington. I Lake Couer d'Alene in northern laano rose enougn to close a sec tion of U. S. highway No. 95. The army corps of engineers dis patched 160 men and heavy equip ment to Bonners Ferry to help cope with the rapidly climbing Kootenai river. ThevKootenai was rising 3!2 feet a dav as hot weather speeded the runoff of the Canadian snow pack. In Oregon, Catherine creek started on a rampage near Union. It washed out several dikes. Sand ba'e crews worked to keepjhe wa ter avay from three or four farm house!. There was no immediate danger to the town of Union which suffered a 1500.000 flood a year ago. j The Columbia went over flood i stage at Vancouver, Wash., but no major damage was expected. El j mer Fsher. river forecaster, said i the Columbia probably would go over tre J8 loot stage pretiiciea earlier as the crest. It will rise at least four days, he said, and pro bably; w ill reach a stage of 20.9 feet Monday. Theie was no prospect, though, of any such flood as the one which struck the Oregon-Washington coast last year. The Snake and Clearwater riv ers rose a foot at Lewlston. Idaho, todav. The Snake invaded a ware house on low ground to a depth of two feet and approached neai by roadway. Homing Call Strong in Cat PORTLAND, May -Pl-Mrs. Robert Martin didn't want her cat, and so three weeks ago she had him dumped 55 miles from home; in wooded country where she thought he could forage her himself. Two days ago the home loving cat came plodding back to her front door. "I guess," she told reporters, "I'll have to send hun to the hu mane society. She saki the reason she doesn't want -him is th;.t "he just liaiii't any personality.'' Stavton High Plans For Kecord Oowd At Honiecoiuiiiir r : STAYTON. May 12 Early re servations for the banquet Satur : day night indicate that a record i share of the Stavton high alumni I association's TOO members will be ; present for the 30th annual home : coming. Alumni activities will join with tne annual high school May dav program at 10 a m. f . urday. The , traditional baseball I e between the high school and amni team will top the afternoon schedule. ur. naries a. nowara, lormer state school superintendent, will I be the featured speaker at the banquet program. The alumni ball ' will jfollow in Forester's hall. (Additional details, page 6) Pntrnrnrr rn cit it rif ll l t? The Salem postotfue will ope- rate on daylight time effective Monday, it was announced Thurs day by Postmaster Albert Gragg. Baseball Scores NaUenal League At prookln 11. Pittsburgh . ;Nw York- . Cincinnati 3 At Pnilarttriphia 4. Chicafo i At Botn-St. Louis (rami American Leaf M t OiK-ifo 1. Borton 3 : Detr6rt J, WwMnrlon I At St. Louis t. PftlLa4ciplaia Or.ly garnes rbedulvai Cat Leagae It Portland S. Hollywood t . ! Sattle t. Oakland 1 A: San Frinnm 10. Sacrannt A! Lot A i teles 1. San Diego ; VTestera latentatUaaJ At: Vancouver 11. Salem 13 At Victoria . Wcnalebrc At; Spokane 4. Tacoma 5). At- Brerta i. Yakutia TirilbaiiftairDes ' Rise wifftiiy Carl Hall, Salem Artist, To Receive $1,000 Prize 31 CARL HALL Wins National lienor mm 4 - ? Truman Renews Pleas For $4 Billion Tax Hike WASHINGTON. May 12f;P-President Truman today stuck to his request for a $4,000,000,000 B) tax boost and anti-inflation powers? touching off sharp new opposition in congress and business circle.-.. Mr. Truman told a news conference the twin programs he repeat edly has asked are still needed to keep the government from opciat ing in the red and to hold the nation's economy on an even keel. Natural Gas Line May Pass Through State NEW YORK. May 12-0P)-Plans for l 400-mile, 30-lnch natural gas pipeline running from west central Canada into Northern Cali fornia were announced today. Ths cost was estimated at $175,000,000. Frank McMahon, president of Pacific Petroleums, Ltd., Of Can ada, said the projected pipeline would originate in the northern part of Alberta province. It would run west and then south through passes in the Canadian rocklet to Vancouver, B.C.. and thence south through Washington and Oregon into northern California. Since Canada would consume only a small part of the indicated potential delivery, he added, bring ing the line over the U.S. border would solve the marketing prob lem. Marketing surveys have indicat ed a demand in the Pacific north west and northern California upon completion of trie pipeline of about 500,000,000 cubic feet of natural gas daily McMahon said. Deadline Near For Landlords Landlords have until May 18 to register ti e w 1 y controlled units with the local rent office, room 315. 460 N. High srt . E. G. Clay.1 area representative announced Thursday. i Doubtful landlords will be giv- ; en help at the office in making certain they will or will not have to register under the new 1948 housing and rent act. School District to Vote Q Diolutioil MoilflaV Vr.fr. l i north Marion coun- fw .j.,. district will cast tv grade ballots . Monday on a proposal to dissolve union high school dis trict 6, which was formed by a vote of the districts last May 27.: Polls will be open at Aurora. Butteville. Broadacres. Donald, i Hubbard and White. Voters op posed 393 to 211 a similar pro- P1 l n Sept. 10. Silverton Park, Pool Sujeriiilentlent Nainel j SILVERTON. May 12 (Spe 'clal) Corey Granger. 202 Cow ing st., was named park and muni cipal swimming pool superintend ent todav. and will begin work Monday. He replaces D. fL De-! Villi. CJl V i v illness. I Granger came here from Kan sas four years ago. Our Senators o won, 13-n C- - Carl Hall, Salem artist, will receive a $1,000 prize as one of 15 artists, composers and writers warded annual non-member grants by the National Institute of Arts and Letters. The institute sent word Thurs day of the awards it gives to en courage young artists of demon strated ability and to recognize more established artists in a prac tical way. Hall, who has located in Salem since the war, is one of four painters on the institute's award fist. He is a Willamette university art instructor. A native of Washington. D C, Hall studied at Meiimnger Art school, Detroit. He was a combat artist with the 383rd Infantry in the Pacific. His paintingx of re cent date have been displayed at W'Kitney Museum of Ait and t Julien Levy gallery, both in New York. His painting work on Ore gon scenery was subjei t of a Life magazine color article ljt ear. I hen, in reference to a tongies- sional drive to trim fedeiul spend ing, he said he believes in and has been practicing i igid government economy. As an example, the -president said he had cut the national debt about 26 billion dollars, which he said was more than any other chief executive had done. In other developments on the economic front. Senator Taft ( R Ohio) told a national lumbermen's meeting "the greatest failuie of the 81st congress is in the finan cial field." He said that if congress "could cut $3,000,000,000 off ex penditures we could avoid a tax increase." But he added he is "not particularly optimistic that it will." Shortly after Taft spoke, the house voted to add about S 1.500, -000 annually to government costs as it approved a measuie giving its members $3,000 extra foi tler ical hire and a $500 allowance for telephone and telegraph charges on official business. Healthiest Pair Chosen at 4-1 1 Fair in Alhanv ALBANY, May 12 (Special) Lyle Noah, Route 2, Albanv. and Barbara Blown. Route 4. Corval lis were cho-en "Healthiest Boy and (In!'' as the Linn county 4-H club lair opened at Albany Thurs day. One thousand 4-H members represented 135 clubs with ex hibits at the Albany high school gymnasium and the Hospitality room of the Portland Gas and Coke company local office. Judging will be completed Fri day and the exhibits will be open to public inspection In the after noon. Contestants, parents and leaders will attend a banquet at 6 p.m. Runnerups for the "Healthiest Boy and Girl" titles were: Second ! place. Paul Anderson. Tangent, and Sally Ohling. Route 3. Albany; third place, Bruce Johnstone. j Route 3 Albany j Donnel, Shedd. ' and Carol Mc- Police Seeking Man with Sate WOODBRIDGE, N J. Mav 12 (AP) Police today sought a man with a saw. Use downstown area was plung ed into darkness lat night when a light pole collapsed It had been sawed cleanly through at the bot- ; torn ' Residents reported seeing a man 1 with a saw saunter through the ' street just before the pole fell. Sclineilen Name! C!anliy 'icjJit Police Officer CAN BY, May 12-Fred Schneden, recently with the police depart- ment in Davenport, Iowa, has been ! named night officer of the C&nby I police department. Chief James F. Hudson Announced. Schneden was , with Davenport for 22 years prior to coming here. Mr KETATKIATIONJI MALT WASHINGTON, May 12-(A-)-The United States abruptly called off further deliveries of repara tions by Japan today-in a new step toward restoring the Japanese to self-support 88 in Salem; Blazes Blamed i On Lightning A high of 90 decrees for Salens toiay ws predicted at midnight by the U.S. Weather Bureau at Mr Nary field. The hih Thursday wai 88 i Eighteen foret fires arc In re gress in the state. 17 jf them teuui directly attributable hi the heal wave, all started by lightning. Th eighteenth, anJ largest of tb group, in the Forest Grove are, was started by a short circuitt In predicting 90 degrees for tc day the weather bureau said the) skies would probably be clear, with a north wind prevailing. De it the predicted higher temper tui the weather will be more toleiabl than on Thursdjy, the bureau till lt d because the jir Would prob ably be drier. ) The laigest of the li fires was started by a shoit circuit in the logging operation jf Ck t Luf:h lin on Turner creek In 'j the .Ft test Grove area. The blaee, In ilaslu ings. vas being trailed. Fourteen spot fires burst out in the Willamette National foret and in Western Lane county, ail the result of lighting. Foresters start ed a plane patr ol, and key 1 k otits wcie ordered tt duty, ifi ing the usual Mjy 13 'opening of th firt watch seisin, ii Thiet other faes in Crook t run ty of aiKnit ar. jcra each wrei .-taitec by lightn.r.g. Moie thurv deistot m foiecatt fur the stale lo d continued li.'i fits dt-.itMT. ikiiixniuin tempe. ifueri m Oit-i Tiiursday incIudiiJ: The Dalits t2l Pendieton 0; Jtwburg 89; liii. land bfc; La Granie ig; Bums f and Medford $2. 4-Lane Road to Salem on Road Board Agenda ? - The state highway mmmiic will consider widening the two lane Pacific hi'.vjy from revr Eia to Salem to f xir lane. State Highway Engineer K. II. Balnock said t.xl-i this piiject might be incluJei as pa it of the commission's program for hl next two year. ; BaldiKk said the commission eventual plan ii fr a four-lri4 route from Puit'ind to Euo.e, with four-lane Sif.tlons In tli4 vicinity of Rosebu:, Orsnts Pah, Miloid and Ash land; Tlie highway now la four-lun only from Port I j til 5utri to Nr, Eia, a distance of iut 13 mits. - Mike DeCicco V Refuses toQuiC PORTLAND. Mjyj 12 -Ah Mike De CicCo refu;d today im resign as treasurer of the Oitfo ttite ; democratic central commit' tee, and challenged the committed to oust him. ! The Portland tire dealer declar ed he would not abandon his ) at the request of "Goody Gtty. Gosslin and the Hj.ney man inttr ests.' I ., His reference was to W. J. JosKlin, state chairman, who objected to a beach fracas invt lv mf De Cicco, a womaa housek p er and several a I r, Josslin t urn railed a meeting of the executive coriinitlee to oust De Cicco. rotVEK LINE BIDil OPENED i PORTLAND, ytty U -4A- The) Bonneville Power adminiMrfct , opened bids todjv on Leber, C4 fine terminal adi'.iirn to the Al bar iy sub-station. Tii low b'o-r wan Lacy .Constructiori co.. Port land, with $7,397. i Bravery and The Air Lift "Bravery Is nothing" more than fear. In a run beaUn down by the priie n a rri-ii." and bravery wa plentiful io U.e Berlin airlift. J Ileary MtLemere give tcm pertinent commeits on tr-e great ! operation i'i hi colmm on page 4 today 'and a in gestion. MeLemere appears each dy Monday through Friday In you COMTLETE, se'.ep-day a a round newspaper