U. S. Troops TArriye TTcalhcr Max. JTtn. Trm. J 41 t 49 Jf Portland San Francisco 4 t j - , KtwYork 1 54 Waiinett Ritt XJ iee Forvcast (from wthr fcwrM. McN&ry field. Salem): PtrllT doner today and tooirht wU l:nj chtcrr tm temperature. Higix today near iew . toaiabt near 40. SALEM PRECIPrr nov Slare Start f Weather I ear iff. 1 ! ThisYear lt Year iwmX 48 49 7f J4 - In Iceland to Assist lulls-(UklU POUNDDD .1651 In Island's Defense . ( i i REYKJAVIK, Iceland, : May 7-vF)-U. S. Brig. Gen. Edward J. McGaw landed by air' today with the first contingent of American army, navy and air forces to help defend this north Atlantic republic, The defense department in Washington said the force consisted of '200 men). . - ? ; y,: t 1 Icelandic newspapers got out extras announcing the "second coming OTP! IPGLDS IJU) 010 The request of Mobilization Di rector Charles E. Wilson on states and lesser divisions of government to refrain from bond issues and new construction comes as some thing of a jolt. The specific men tion of veterans bonuses as outlays to be avoided hits Oregon because the machinery now is being set up to pay the bonus to vets of World War II which was authorized by the voters in Jie last election and given implementation by the last legislature. Wilson's state ment was only an appeal, not a command, so it would appear that the state authorities would have to proceed in compliance with state law unless federal authorities im pose a positive negative. - - In the case ol issuance o bonds for highway construction this prob ably can be Justified because such work consumes a relatively small iiant;tv nt critical materials. Also highways are rated as- essential both in war and peace, iwen dur ing the last war a great deal of highway construction was carried on. The economies resulting from road construction will be sufficient to gain approval of the mobiliza tion office, in all probability, r The Marion county courthouse is a building project which is in iurieri in the eeneval zrouoinZ Of projects which Wilson asks local units of government xo aeier. xjui Ihis project was deferred through the last war, until now its con struction gets into the "urgent' class. The county rented space for its offices in the school adminis tration ' building, but that is not satisfactory for any great length of time. There is a fire hazard in that old buHding just as there is In the old courthouse. The argument given by Wilson is valid. Turning loose big sums (like the" $50,000,000 in the vet bonus) is inflationary; and bor rowing and spending money for public .works also feeds the fires of inflation. This also is true that when the current war-induced boom is over we'll be needing pub lic works to provide employment. Also the money may buy more than it will now. But communities can't stand still indefinitely on schools, roads, highways, public buildings. Sotne works must be initiated and com pleted. Wilson is right, however, in his appeal: the only building and borrowing to be done now should be for items of immediate necessity. Britain, France Back Embargo On Red China UNITED NATIONS, N.Y., May 7-AFr-Britain and France indicated today that they support an Amer ican : proposal for a world-wide embargo against shipping arms, ammunition and war material to Red China and North Korea. The United States proposal was put formally before a -12-member U.N. committee studying methods of punishing Red China and the communist aggressors in Korea. U.S. Ambassador Ernest A. Gross outlined the terms of the resolu tion when the committee met last week. 1 : Sir Gladwyn Jebb, Britain, told the committee he would not give a definite answer now, but it was possible that Britain would feel the time has come to submit such a resolution to the general assembly. Francis LaCoste, France, said it was proper to except the UJS. resolution would receive sympa thetic treatment by his govern ment. , Animal Crackers 8y WARREN GOODRICH "ace we struck e3 I know what 9 Am havcxx Ktncor 1.. b. of the Yankf. The government is- sued a statement saying the troops had arrivedl at the invitation of this country, and independent member of fhe north Atlantic air liance. ,. " j It was belived the force will be built up gradually in the next few weeks. Its activities will center around thef two main airports, Keflavik, 30 miles from the ca tal, and Reykjavik, but listen- posts and Other strategic instal lations about the island will also be manned., j ; Only Defense Force American troops were stationed here from early in the second World War and were the only de fense force for this island close to the artic ciicle Iceland's airfields and bases Were an important fac tor in the protection of convoy routes across the North Atlantic. Iceland, , a nation of 140,000 people, has no army, navy or air force of its Sown. j The government statement said: "When Iceland joined the Atlan tic Pact, ii agreed that if war broke out the allies would have a similar position in Iceland to that they had during the last war. But it was entirely up to Icelanders to say when such a position would be granted."! Reds Not Consulted The government consulted with 43 of the 52 members of the Al thing (the; (world's oldest 'parlia ment) who all agreed now was the time to ask (for defense forces, the statement slid. The nine commun ist member! were not consulted. I In negotiations carried-on di rectly with jthe U.S., the statement said, it was agreed Iceland will retain control over the number of troops to b4 herer j It also was agfeed that Iceland will control (civil 'aviation at Kef lavik. The Lockheed Overseas Air craft corporation now operates the airport with American and Ice landic civilian personnel. uits As Hand Board Administrator ill-- PORTLAND, MaylT-P)-DanIel Tj. flftldv tnHav aTmnunrerl his res ignation as i regional administrator oi me Dureau or iana manage ment. - ; ; i The interior department an nounced in! Washington that Ros coe E. Bejl would succeed him May 11. Bell has been associate director of ithe bureau. i Goldy said he was leaving to become deputy director of the Marshall Plan labor division for Europe with headquarters in Paris- I!"!-' ! " He had won much support from the smaller operators because of his policy qf making timber access roads available to them and had worked against cooperative sus tained yield programs. These pro grams give; to big operators ex clusive timber rights in blocks of federal land in exchange for sus tained yield practices on federal umber and on their own lands. Warner Baxter, Actbr.Dies ! BEVERlJV ? fall TLfaw t -(TV-Warner Baxter, 62, veteran motion picture actor, died at his home tonight after a lone illness. He had suffered from arthritis for years and ! a lobctomy was per formed three weeks ago to allevi ate his pain. Bronchial pneumonia set in recently and hastrnM his death. - ..- j Warner Baxter was the original "Cisco Kid? of the movies. He and his second wife, the for mer stage iacrtess Winifred Bry son, celebrated their 33rd wedding anniversary in January 1951. 1 i Baxter won a movie "tvwar" 4nr his portrayal of the "Cisco Kid in the movie "In Old Arizona" in 1929. i j ! vein State officials here Monday ex pressed ; concern that! Oregon's highway and bonus plans may: be hampered by a federal defense mobilization : announcement seek ing to limit borrowing by states, counties and cities. ; j . Charles fE. Wilson, mobilization director, said Sunday groups de siring to borrow in e x c e s s of $1,000,000 would have to obtain clearance ffrom the defense mo bilization agency. - - . : The effect ol the announcement on the $42,000,000 of state high way bonds and $50,000,000 of state bonus bonds was being considered. Both bond Issues were approved by the recent legislature. The bonus bonds were approved by the voters at the last general election and later by the legisla ture. Director W. F. Gaarenstroom of the stale veterans department xsid he fcxred that buyers miht ' : 6 ; Goldy Q Federal es&'ee on 101st YEAR County Budgetmakers Start . , - - . : " - - r 1 ; !';;wi" it m -j - . v j , - - "' 'J - ff oQ'f.'.'P f iim niiniiiii hi i ii i hi i inilin mr? - F' - " " 2r m i mmJ ' ' ' ' " Marlon county budget committee members study the 1951-52 budget : Monday morning at the epenlnr of . the annual session. Seated are, from left, A. C. Haag, County Jndre Rex Hartley and Secretary Mar garet Kernicsek. Standinc from left, are Loyal Warner, who will saeceed Haajr, Commissioner E. I. Ro gers, Delmer Davidson of Talbot. Manton Carl of Hubbard and Commissioner Roy Rice. (jStatesman photo.) ' j j . ' Right to Try Time Case Challenged l-f . i ;:; ' Raise Assured for County Employes TVnntv Attnrnev General E. G- Foxley Monday challenged - the right, of the circuit court to as sume jurisdiction in the suit seek ing to revoke Governor uougias McKay's proclamation placing Oregon on daylight savmg time. The suit, by the Oregon' State Grange and others, is being heard by Judge George R. Duncan here. Foxlev chareed that the courts would go a long way in interfering with the duties or tne governor ana declared that even if a writof mandamus was issued the execu tive could not be penalized under the existing statutes. ; Raymond Kells, Portland attor nev anDearifcz for the grange. argued there were numerous cases on record where the courts held that a mandamus writ directed at the governor was proper. He pres ented a number of these author ities to the court. Particular reference was; made by Kells to three accusations in the complaint. These were: 1. That the governor's procla mation, under the law,' could not legally be issued until all states bordering on Oregon had issued similar proclamations. 2. ., That the proclamation was premature as there was no dis parity .between the time in Ore gon and bordering states. 3. That there was no evidence to show that: the State of Oregon had suffered' any material disad vantage because of its time and the time in use in neighboring states. t An opinion of Attorney General Neuner holding that governor had authority to I issue the proclama tion when any bordering state had done so was attacked by Kells. Briefs were filed by the oppos ing attorneys and Judge Duncan took the proceeding under advise ment."" ' ' J iQETOUBIfilinj IpHuisosd refuse to purchase the bonds or charge excessive interest rates under the Wilson order. It was proposed to start paying the bonus October 15. Issuance of the highway bonds is restricted i to $15,000,000 a year under the legislative act. State Highway Engineer R. II. Baldock said there would be no delay on the part of the state high-f way commission in speeding up its highway construction program with the first contract to be award ed at a meeting in Portland May 24. This is a $1,000,000 resurfacing job on the Bend-Burns highway. He added that first of the state highway bonds would be sold this summer. ,. ;; Baldock said he was surprised that Wilson's order applies to road bonds and that he would go to Washington next month to confer with federal official. , . State attorneys satf the order 12 PAGES Gate Unions to Bacli GgaretTax Referendum PORTLAND. May i 7 -VP)- The Portland Central Labor Council will launch a referendum against the recently enacted 3-cent-a-pack cigaret tax. ! ' j Also a referendum target will be the tax companion bill a fan trade act which banned the sale of cigarets at .below a certain profit rnargin. j j The' two acts would have raised the price, of a package of cigarets by 5 cents,, -.- j The dicision to sponsor the ref erendum was made tonight Cecil W. Jones, president, said it would take 27,000 signatures to get the referendum on the ballot. If the signatures are obtained, the tax will be held up until the next elec tion, he said, j Ahead in Korea TOKYO, Tuesday, May 8-W-South Korean troops smashed hard into a North -Korean army corps northwest of Seoul Monday and rolled it back three miles to points 13 miles from the capital. The allies have won back near ly half of the ground lost north of Seoul tq 300,000 reds who aimed the main weight of their futile offensive. at capture of the capital by May day. ! j apparently does not force any state to comply with its provisions but the government would have au thority to place restrictions on road building materials. Placing restric tions on road materials would have the same effect as a non-construction order, they said. j It also was pointed out that while - Wilson would discourage bond Issues In excess of $1,000,000 the federal bureau of nubile roads is encouraging them by permitting use or federal funds to pay off bonds. Officials said this never has been allowed before. i Road construction to be included in the first year of its expanded road construction program prob ably will.be decided at the May meeting of 'the highway commission,-Baldock averred- i Governor Douglas McKay said he would comply with Wilson's order and would file the required application. Xsr a clearance. i SEiSKGS ' - i i Ho mid Plains Tli Oregon Statesmen. Salem. w1q SnQDoiiodl llmm LPoekso Annual Chore t By Cenrad Prance - ! - Staff Writer. Tb Statesman Marion county employes will be granted salary increases, the county budget committee agreed Monday In its opening session, but the amount of the increases will be announced today. A proposal to grant a $15 per month wage boost to all employes was sidetracked when a delega tion from the county xoad crews protested the proposed increase as inadequate. The six-man committee approv ed budget items in a number of county offices Monday in their annual task of making up the county 195152 budget. At the be ginning of the session requests to taled $2,651,891 or $67,331 above the amount allowable without a vote of the people. Increase Proposed County Judge . Rex .Hartley opened the meeting by stressing the necessity of a wage increase for employes because of the In creased cost of ; living. Commis sioner Ed I Rogers proposed an across-the-board $15 per month increase for workers. v Robert Massey, W. Shelley and Earl Standley, representing coun ty road crews, said this was unfair to road crews who work harder and longer' hours than courthouse office employes. ; - Massey said the $15 per month would only increase county wages about 7 per cent while, he said, the cost of living has gone up 18 per cent In the pasf year. He said that the county scale was below that of city crews, even prior to a recent city increase, and below the state schedule. The road crews are an efficient organization now, said Massey. To refuse a decent wage increase and to lose those men is false ec onomy." - ' Another Proposal " He proposed a 10 per cent in crease for crew members now re ceiving more than $300 per month. 12 per cent for those getting un der $300 and a 25 cents per hour boost for men on hourly wages. Committee member Manton Carl of Hubbard protested the contin uing increase in county wages. He said he thought the county wage boost approved last year was "too much." He added that farm labor is lower and that he didn't like to see "such big spread ' between farm and other labor scales. : Committeeman A. C. Haag said he favored an adjustment-of the road crew wages to correspond more , fairly with wages paid across the country. You get the kind of help you pay for. he said. Hassey Sargesia . . ; An alternate proposal from Massey would .place the crews bn a weekly 40-hour work schedule and asks for a 45 cents per hour increase for all hands. Under this plan, said .Massey. the crews agree to work 43 hour weeks in times cf emergency, such as for winter re pair on roads or bridges. The cornmittee " said - it would takethe matter under "advisement and would report back this morn ing at 10 o'clock. Massey. is to ap pear before the committee again today; : i ::j - . - (Additional budget details on Paja 3. . Oregon. Tuesday. May 6V 1S31 Sees Risk Of War in Mac Plan By Don Whitehead WASHINGTON, May 7 - (ff) -Secretary of Defense Marshall told senators today that . General Douglas MacArthur's appeal to the enemy last March destroyed for the. time. being any chances of a Korean war settlement. v " ' He said the United Nations was preparing an announcement of preparations to discuss a war set tlement the announcement to come from President Truman when MacArthur issued a state ment on March 24 that he was ready to talk peace terms with the red commander in Korea. ; "In view of the serious impact of General MacArthur's : state ment, on the negotiations of these nations, Marshall said, lt be came necessary to abandon the ef fort, thus losing whatever chance there may have been at that time to- negotiate a settlement of 'the Korean conflict. . . Risk ef War - ; -: Marshall made this. - statement after declaring that MacArthur's war plans would risk an all-out war with Russia, expose Europe to attack, and perhaps split the free world into two camps. ; But he hinted this country will hit red China by air and sea if the reds strike " at , American forces outside Korea, presumably . those in Japan and with the 7th fleet off Formosa.' Marshall came to the hearing by the senate armed services and foreign relations committees armed with a big pile of secret documents. And whole chunks of his testimony were deleted by the defense, and state department censors who are "combing" the record for security purposes be fore it is released to newsmen. Almost sadly, the 70-year-old Marshall struck back at a "brother officer" in defense of the conduct of the Korean war which he said was approved by the joint chiefs of staff (JCS) and himself. Violated Orders He said he did not believe as MacArthur does that bombing Chinese bases in Manchuria will bring victory in Korea. And 'he added that while MacArthur never violated military campaign direc tives he did violate orders against public statements. . Further, he denied as MacArthur had suggested, that he or Presi dent Truman had overruled the joint chiefs of staff in war plans which agreed in part to those pro posed by the desposed general. And he denied ther administration is considering red China's 1 admis sion to the United Nations and the fate of Formosa as the basis of a Korean peace treaty. " - MacArthur had told senators the JCS had urged against any con sideration of U. N. membership for red China' and Formosa's future in peace discussions and that he un derstood the recommendation had been vetoed by Marshall. ;., . Marshall told the senate armed services and foreign relations com mittees: .-v.-. . (1) The TJ. S. government is now discussing with United Nations al lies a possible naval blockade of red China's coast, but the issue has not been put to a formal vote. Opposes Entry Lnte U.N. v : (2) The Truman administration stoutly opposes red China's entry into the U.N. or giving the com munists control of the Island of Formosa. ; . (3) MacArthur once informed the joint chiefs that the U. N forces might have to evacuate Korea un less he could step up the war against the reds with air bombing of red bases, a naval blockade, and the use . of Chinese - nationalist troops. (4) JCS. recommendations of January 12 which MacArthur said supported his proposed war plans was" partially carried out. But most of them were discarded when U. N. forces halted the big red - drive last January.. Marshall said there were IS points in these recommendations but MacArthur quoted only four. (5) President Truman approved a JCS recommendation' to permit U. S. pilots to chase red raiders across the Manchurian border for a limited' distance but this plan of "hot pursuit' was voted down by other U.N. members involved in the Korean war. . . (ff) MacArthur was 'fired be cause his "basic differences cf judgment .with the president, himself, and the joint chiefs had caused them to doubt his command decisions. - - VA?UI2TrTNIS2 HZ-TU1C1ZD EUGENE, May, 7-3-G. Van deneynde, Salem, was re-elected president of the Orefon Retail Distributors- at their lid 'annual icstltuta ccsfzresca fcsra today., , PRICE 5c of? W . IX Geo. Albert Wedemerer To Take It Easy Wedemeyer Asks to Retire FromIJ.S;Arniy . SAN. FRANCISCO. May f-iffV- Lieut. Gen. Albert C. Wedemeyer, whose long-secret report warned of a red attack on South Korea, has asked for retirement from the United States army. General Wedemeyer Is ' com manding general of the Sixth army. whose headquarters here today confirmed that he had applied for retirement. .. ri ' Headquarters of the Sixth army area which includes the Pacific Coast states said the general would not issue a statement at this time because he felt it was "not appro priate for-Mm' to make any far ther statement until the applica tion war-acted upon. . Wedemeyer, now.'53, -will not reach the- full- retirement age ' of 62 until July,-1959. Aides said he had been considering retirement for two years and had nothing in mind other than "taking it easy. They said his ' annual retirement pay would be $8,592 three fourths of his . present salary of $11,456. Aides of Wedemeyer firmly 'de nied his request for retirement had any connection with the MacAr-thur-policy debate now raging in congress. . 1 General Wedemeyer headed a special mission to China and Ko rea in 1947, then submitted his re port to President Truman on Sept 9, 1947. In the report the general pic tured the communist build-UD of North Korean armies. He also sug gested several steps to prepare South Korea to meet the menace. - Some portions of the now fam ous Wedemeyer report were -mad puoiic in Washington last week. Other parts remain confidential. Jimmy Stewart Father of Twins ' wnri.vwnon xt Twin girls were porn by caesarian section tonight to actor Jimmy Stewart's wife, Gloria. - -Mrs. Stewart, the former Gloria Hatrick, entered Cedars of 'Leb anon today. She has two sons by her previous marriage to Edward McLean. Stewart is 42, his wife 22. Stewart was too excited about the twins to find out their weights for reporters. He also said he was too excited to think about names yet. - CordeUHuU Seriously El WASHINGTON. May 7 -)- Former Secretary of State CordeQ Hull is in precarious condition at the naval medical center at near by Bethseda, Md. He-was admitted to the hospital on Saturday. He is nearly S3 years of age. t I 1 it . . "Western International At Victoria L Vancouver 4. -O&ir game scheduled. Coast Leaxve NaUansl Lex re 9 At trociJyn 4. ft Leu-i S (II inn.). Only gam scheu3d. American lsrB At IVtrelt 13. Vw Vor t S. Al f t. Loui . listen X, i ' ' l .. j ........... . Ho. Z i i J u Stresses ! Unity. of. j Allies WASHINGTON, May 7 - ( President Truman, declared tonijil that extending thm TTii-ean - as Gen. Douglas MacArthur rrN. . posea mignt lead to a rain i atomic bombs on America's cities. Revising a maior foreign riirm" speech after copies of it had beve mso-iouieo,- inr. Truman said: j i ."Remember this? If ria . another world war, it will be ma aiomic war. We could expect many atomic bomhe frt Kb a American ntiAt AnA m cincio. , of them could cause many Lubcs xuure casuaiues man we have suf- iereq in au the fighting in Kcni I do not want tn K r.c-Li. for bringing that about. - The president added these rtate- - ments to a sneech in .-hi-K k, clared anew that spreading the war J , , orTa miSnt well intite. World War III. - - - He said the fru nat;n. v .i. i - and in Korea, have stopped tb march of communism in Asia dealt a heavy blow to the Kra- lin COnnirar-v" nil v.. - Already, he said, there are t-ipw of a crackup behind the iron cur tain. - - And he declared that a "f & alone" colicr in the Far Fad wreck the whole western d It exiorx ana xnus amount to "a U mendous Soviet victory. i Proposed Ultimatum 1 MacArthur, testifying before senate investigators last Thursday Proposed an Ultimatirm tr pki' nese reds.- If allied nations failed w go ajong, ne said, the United States should "go it alone." f "We do not tntonA 11 ' . 4 ' tail XJ 1 i-V uiat- trap," Mr." Truman asserted a an aaaress prepared for a na tional civil defense conference, i The president declared that "tie best collective mi!itai- iHtir. t-. this country backs his policy cf " limiting the war In Knrva that contrary ; to MaeArthura sxaiements "our policy is ci signed to win. ; j ; "But if the aggressor takes tai ther -action which threatens SeCUritV of the TJnitjxl Tslsti. f Korea, he said, wi will counter that action Thus he left open the possibility that some Of MacArthnr'. Kit-iK- ji reds-harder demands wiU be car- nea out it the Chinese ccmo- nists provoke them. Stresses Civil Defense J Since "the terrible destruction of cities and of civilization as -we know it. is a real rjassihiiitv - h president said, the country must organize -in every city, factory, office and home" tn reri number of deaths and injuries and m caeca; panic i He said the civil defense work ers must: ; - 1. Teach all Americans bow H protect themselves in the event tl enemy attack. ; 2. Organize and train "mUlioce of volunteers as active of the United States civil defee corps.- - , t Mae Issaes Keply ! NEW YORK. May 7 - (JP) - Am aide to Gen. MacArthur tr.rAr- i reiterated the general's view ui ue soviet oecision on peace cr war "will depend upon the pctea. tialitT of destructiflri tn 5r-i i.- rather than American cities." This was in reply to Preside Truman's assertion ih a speech t nicht that" exnandise the lfrnr?i war. as proposed by MacArttoer, wouia nring a real pcssibjlity J "death blow" atomic attacks ca American cities if not the rtruction of "civilization as we snow iv i Quates Shalie j El Salvador; i leOOO Perish SAN SALVADOR. El JialvaAr- May J-tT-New earthquakes weri reponea in southeastern vador today, la the wake cr devastating quake yesttrd which killed approximately 1,C. j persons in Jucuap alcne. - The new tremors were rer- la the cities cf Tsztisca E : and ia Eerlia. J,'j cr-il'J. j lzr been reported thtia fix ia va second day's cruake. The president cf th rrjrullLa, LL Cel. Orr-r Cscrfo, ltd a rard cf Crcrs tzl c ;r r; Lef and rescue vrczLzn lz'2 t.. stricken crea. Thm r - verr decreed dree days cl ru.:.c-mo-urrirt i:r the v :r:t .:. -c-ziitcr ia Ci ccur... j'- Li--ry. 1i.s fTg'tast car.' t n j - ' rcrtI t : urv-r a, a c r c ' ' :.Ci3 r . n . r - - -e 4 aw w i