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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Oct. 12, 1951)
Welcomer 7eather ;Mx. Mliu' Frtln.- - M M 44 .MUM - 67 4 M - 40! 40 : Portland Saa rranclsco Chicaro , MwYork Winamttt IJvtr -LI ftct FORECAST (from V. S. weather bu ,- McNary field. Salem): Partiy ly today nd tonlfht. Little warp day with hlfh U to 67, aad lew Sit 4 to 46.i er today tonigli 2 SECTIONS-24 PAGES Thm Onqon Statetmem. SaUnu Onqan. Txidaj. Octobc 12. 1S5X PBICE So No. 1S2 1 : POUNDDD 1651 Conferees Agree On Tax Increase WASHINGTON. Oct ll-UPl-A $5,750,000,000 tax increase pro Indicted "' . " 9mm , ' 10rt YEAH , J . - n ' r -.. , . , ' , i ..' - r ' y . 1 w A J:: -r Jj&.. C! - i . 1IL i vi fflcUL Bomecomlnx Boctew n m At 111 ' Washington has turned down the appeal of the governors of Ore gon and West Virginia for relaxing the ban on sale of state bonds to provide funds lor payment of vet erans bonus. This will delay the bonus distribution but will not de feat it The people of Oregon have voted the grant, and unless they repeal their, action of 1950 a most unlikely prospect the bonus will be paid as soon as federal credit rules are eased. That may come sooner than we now think, if the world -situation' clears. I think the state bond commission, on reflection, will decide not to invade state trust funds to pay the bonus. It was the Imminent issue of these bonds which caused experts of a national financial rating serv ice to reduce the rating for Ore gon bonds from AA to A grade. That put the state well down the list, along with Arkansas, Louis iana, Michigan, Rhode Island, South Dakota, Tennessee and Washington. The mounting debt has the effect of weakening the state's credit standing, though there is not the slightest doubt that Oregon will meet all it obli gations punctually. In fact an analysis of our state indebtedness shows that while the total which has been authorized is large, some never has been is sued and will not be, and much of the outstanding debt is serv iced otherwise than out of state general funds. Back in 1932 in the spasm of enthusiasm for pub lic power the people authorized statedebt up to six per cent of the assessed valuation for power development. The federal govern ment took on that chore and Ore gon never issued any power bonds, and it is improbable that it will in the foreseeable (Continued on Editorial Page 4) : WSB Averts Maritime Strike, Grants Raises. WASHINGTON, Oct 11 -VPh The wage stabilization board, with industrjr members dissenting, ap proved today a $39 to $50 monthly wage increase for ship radio offi cers, effective Sept 1 thus avert ing a threatened walkout on all coasts. The 1,350 radio operators, mem bers of the CIO-American Radio association, had threatened to re fuse to sail if the board turned down, the increases which the un ion said would correct "inequi ties. . Animal Cracfeero y WARREN GOODRICH CASTING h wouldn't feel badly fcey probably lust don t have e manuienpr for an berdvars this vV Ircrp I Turkey Dinner SCEKD38 the local caxnpua durinx ito annnaJ CVa tm ttinlAS' VAtM VMaKnv Launches Hall Drive Tonight Itatesmaa News Service KEIZER, Oct: 11 A family- style turkey dinner at 7 pjn. Fri day will open a drive by 28 Keizer organizations I for a community hall. It will be held at the Keizer school . auditorium, and plans are underway to serve 500 persons at the public event. 1 J. L. Franzen, city manager of Salem, and Ray Lafkey, Salem at torney, will speak. Walt Keckter will be master of ceremonies. "Nothing has been decided about the proposed building except that it will be large and will accom modate all types of Keizer organi zations,' According to Mrs. C H. Teeter. She is an official of the Keizer Commercial club which is active in the campaign. , Eleven locations have been sug gested for the community hall. The building site committee will meet October s 23 to narrow this to two or three. ! Rose Locked Out of Home By Eleanor " luoii! v7"now- man amy Rose got the lockout treatment today from his shapely wue, xueanor Holm, in a little drama at his plush 33 Beekman place mansion.; As stories continued to fly that the two have i separated and are headed for the divorce court, the ou-year-oia producer appeared at the mansion in a chauffeur-driven Cadillac. ; Keys jingling, he tried the door. No luck. "Wrong key, he ex plained to newsmen. Fifty minutes later he returned. The key went in but the door wouldn't open.! Rose rang the bell furiously. A window opened up stairs. A maid stared at Rose. He looked at her. The window closed. He rang again. No answer. Rose departed. He iwasnt without a place to sleep he has an apart ment in his Ziegfeld theatre. : A butler, Murray Mackay, told newnnen Eleanor was away dur ing the incident1 RADIO CONTROL PASSES WASHINGTON, O c t j 11 -)- The senate passed and sent to the White House today a bill giving the president wide powers to shut down radio devices in case Of a threatened aerial attack on the Un ited States. j . Russ (Terms for Italian Peace Treaty Ruled Out MOSCOW, OctflMaVThe So viet Union sent notes today to the United States, Britain and France agreeing to modify the Italian peace treaty if Italy quits the At lantic pact and if the west agrees to similar easing of treaty restric tions on Bulgaria, Hungary, Fin land and Romania. One western diplomat at once predicted that, in- view of Russia's reply, the west would go ahead without the Soviets on revision of the Italian treaty. Western obser vers predicted that such revision would cause the Russians to seek some form of retaliation. The Russian f note, handed to western charges d'affaires by for eign Minister Andrei Vishinsky, was a reply to notes sent Russia Sept 28 by the three big western powers they planned to modify the treaty with Italy, i Russia's note today said it would agree also to admittance of Italy to the United Nations if Bulgaria, viding sharp boosts in individual income and excise taxes next month, and retroactive increases on corporations, was approved today by a senate-house conference committee, Although described by commit tee aides as the second biggest tax increase in the nation's history.it was little more than half the $10, 000,000,000 . asked by President Truman. . If finally approved by the house and senate, the measure will re sult in a total tax hike of $15,750, 000,000 since the outbreak of the Korean war. Congress enacted a record-breaking $6,100,000,000 tax bill in September, 1950, and a A comparison of the new tax with the present rate may be found In the tabulation en page 10. $3,900,000,000 excess profits tax last January. Leaders expect to call up the new bill in the house Tuesday and in the senate as soon as the house acts on it .The bill is expected to pass the house and senate although some opposition is likely. The original house version was approved by a vote of 233 to 160, and the origin al senate version went through on a 57 to 19 vote. 11H Percent Rise The com promise measure agreed upon today raises the in come tax liabilities of most Indi viduals by about 11 per cent, al though the percentage- varies above and below this figure due to "rounding off" the rates to even numbers in the various brackets. Unmarried persons who are heads of households were granted approximately half the tax advan tage available to married persons under the income splitting provi sions of the present law. Net increase in revenue from the Individual income tax changes was estimated at $2,480,000,000. Takes Effect Nov. 1. Corporation taxes go up by $2, 300,000,000 to $2,240,000,000 the exact amount of the increase has not yet been computed and ex cise (sales) levies rise $1,204,000, 000 (over a full year's operation) under the new rates. Some miscel laneous provisions of the bill re sult in revenue losses. The individual income and ex cise increases take effect Novrl, while most of the corporate tax changes are ' retroactive to last April 1. The tax on whisky and other hard liquor will rise from $9 per 100-proof gallon to $10.50, or about 26 cents a fifth for ordinary type liquor. The beer tax is in creased from $8 a barrel to $9, add the rate on wine rises an average of 12 per cent Fenny Tax on Fags Other excise increases include a penny a pack on cigarettes, from 7 to 8 cents; gasoline from 1 to 2 cents a gallon; automobiles from 7 to 10 per cent of manufacturers Srice; trucks and busses from 5 to per cent; sporting goods in gen eral from 10 to 15 per cent (al though baseball equipment no longer will be taxed). The 20 per cent retail tax comes off baby oils and powders, and the tax on tele grams goes down from 25 to 15 per cent Several items of electri cal equipment come under a 10 per cent manufacturers' tax for the first time. Royal Tourists Enjoy Night of Square Dances OTTAWA, Oct 11-CaVPrincess Elizabeth dropped silks and satins in favor of a peasant blouse and dirndl skirt, and Prince Philip donned blue jeans and a wild shirt tonight for an informal evening for square dances and reels. They -were guests of Governor General Viscount Alexander, who is a square dance devotee adept at steps he has learned since com ing to America. MATJNA LOA RUMBLING HILO, Hawaii, Oct 11 -HJPh Mauna Loa, which last erupted in June, 1950, is rumbling uneasily again. Hungary, Finland and Romania similarly were admitted to the U.N. (The U. S Britain and France have consistency opposed U.N. ad mission for Bulgaria, Hungary and Romania, charging ; them with widespread infringement of rmTnan rights. Finland has never applied for such membership.) ' The note also stipulated that Russia would join in the proposed treaty modification "only in case" Italy quits the Atlantic alliance and does not permit military bases or armed forces of foreign nations on its territory, i (The western allies have de clared in a joint statement that their principal aim in revising the Italy treaty is removal of restric tions on Italians armament so she can play a full role in the Atlantic alliance. : (The western powers believe Russia has rearmed Bulgaria, Hun gary and Romania far beyond the restrictions laid down in the peace treaties vita most countries.) Salem Woman Testifies in Abortion Trial PORTLAND, Oct 11 -(JP)-First witnesses testified today in the trial ; of Dr. George H. Buck, charged -with manslaughter by abortion. Testimony began after Circuit Judge Frank j. Lonergan denied a motion by Ralph E. Moody, 35, Salem, chief defense attorney, that the indictment be dismissed, r Moody argued that the indict ment, as worded, failed to show a crime had been committed and that in addition, a 1939 law had voided that statute under which it was drawn." Notice of Exception After the judge ruled against him, Moody filed notice of excep tion, possibly indicating plans to appeal if the case is lost. Principal witness was Viola Fri day, 23, Salem, who testified that in December, 1950, before her marriage a Salem physician told her she was pregnant She said she then got a cashier's check for $200 at a Salem bank and came to Dr. Buck's offices here. Mrs. Friday said Dr. Buck confirmed that she was pregnant and told her the price for an abor tion was $500. Agreed to Payment ; .She said he agreed to a pay ment of $200 down and performed the abortion. .Then, she testified, Dr. Buck caled a taxi and ar ranged for a room for her at the YWCA. She collapsed at the YWCA and was taken to Portland General hospital for two days' treatment, she said. Earlier her husband, Ed Friday, a Salem : carpenter, testified he had given her the $200. He said they- were married last Mayr" " " Stanley MacDonald, Multnomah county sheriff office handwriting expert, was called to testify that the signature on Mrs. Friday's cashier's check was Dr. Buck's. Four Days Left In Chest Drive With four days to go and $45, 000 to get, Salem Community chest's campaign was getting down to cases Thursday in a pros pect by prospect check to com plete the canvass of Salem's citi zenry for funds In behalf of 23 character! building organizations. Reports on the 10th day of the campaign for $120,000 Thursday showed a collection or pledge list to date of $75,574 or 63 per cent Chairman Edward Majek and other chest leaders were urging volunteer solicitors to complete their "1 rounds this week. They re mained encouraged about the out come, as : several expected large contributions have yet to come in. The employe-participation pro gram continues to make a good showing, Majek said. New 100 per cent coverage reports came Thursday from Colyear Motor Sales, Walter H. Zosel Co. and Burrell Electric, with donations averaging about $5 in each firm. First National bank employes supporting the chest averaged $7.19. , Yonr Community Chest Chest Agencies Warrant Help Wade C. Carter m. Tvtp Worktri No. lit The Salem Community Chest is an organization of Salem cit izens which collects in one drive the neces sary funds to carry on the work of var ious organi zations in the Salem c o m m u n ity. These organizations consist of YMCA, YW CA, Boy Scouts. Girl m 5 Scouts, and These groups Campflre Girls, are character- building organizations which make better citizens of our chil dren. Salvation Army, Catholic Charities, and others which help the needy are worthy of our support That Is why I feel whole heartedly that we should give very generously to this 1951 drive. r :.r' " r Goal $129,0091 Drive Oct. Z-ll K H - James P. Finnegan, former St Skoals Internal revenue bureau collector, who was indicted Thursday en charges of accept ing bribes. , Friend Faces Bribe Charges ST. LOUIS. Oct ll-(;P)-James P Finnegan, former St Louis in ternal revenue bureau collector and central figure in a house in vestigation of alleged widespread scandals in the tax collecting ag ency, was indicted today on char ges of accepting bribes. The silver-haired Finnegan, a personal friend of President Tru man, was accused in an indictment returned by a federal grand jury which began its investigation be fore Finnegan quit his federal job in April Faces Five Counts , He was charged in two counts with accepting two $250 checks from Karol Kell Garment Co., at a time.. when the firm had pending delinquency, case which, by law "might be brought before him in his official capacity." The three other counts accused Finnegan of violating a law by ac cepting more than $8,000 pay for services involving controversies in which the United States was a party. . Bond at $5,000 Federal District Judge George H. Moore, who ordered the inves tigation into reported income tax irregularities here, fixed Fmne gan's bond at $5,000. The judge ordered the grand Jury to recess suDject to can." If convicted. Finnegan could set as much as three years on each of the bribery counts and fined three times the amount, of money or property received or both. Arrests by FBI Checks Thefts WASHINGTON. Oct 11 -UP- The FBI reported today its agents nave arrested ;izo persons In a widespread crackdown on theft of government property worth more than $1,000,000. Most of the property was mili tary, u saia, ana ranged from pure silver and raw crude runner to plastics used in making braces for cnppiea veterans. FBI Director J. "EAtrar Wnnver said those arrested included civil service and supervisory govern ment emnloves. mlHtarv nprsonnel. civilian and military police and private ciuzens. His report said the 120 had been bagged during the last two months, 30 of them in the last 24 hours, ana that 1,029 other cases of al leged theft from the government were under investigation. KhT nffiala sal1 it una sTina.. ent there were a number of "local rings'" involved, but there was no evidence of any national, inter- locxing ring of thieves. House Votes Republican's WASHINGTON, Oct 11 -UP-Beating down repeated republican attempt to cut the funds, the house tonight passed an $8,229,255,096 foreign-aid appropriation bilL The bill, passed by a 221 to 99 roll-call vote, now goes to the senate. It finances the program of military and economic help for foreign nations resisting commu nism, -i - The bm appropriates $7,482, 527,790 in new cash. On top of this, it reappropriates. $818,727, 308 in funds provided previously by congress but not yet spent President Truman originally had requested congress to approve an $8,500,000,000 program, in addi tion to the carryover funds, but congress chopped this down by approximately $1,000,000,000 when it gave its okay to continuing the aid program, i President Neutral Aone Trouble Spot In'Preliminary MUNSAN, Korea. Friday. Oct. 12-P)-A dispute over where to draw a neutral zone threatened further delay today in resumption of Korean truce talks. , Allied- and Red liaison officers met again today at 10 a.m. (5 p. m., PST, Thursday). ' About an hour and. a half later. the liaison teams recessed until 2:30. pjn. (9:30 p.m.) PST). Propose Later Action The Peinin? radio xairi that nt the two liaison sessions Thursday near Panmunjom village, the Reds proposed immediate resumption of conferences by the full delegations at 1 p.m today. The Red broadcast said the al lied team refused because "the U. N. liaison officers are still insist ing to negotiate the scope of .the neutral zone To reduce the possibility of neu trality violations, such as the Reds charged in breaking off the truce talks at Kaesong Aug. 23, Gen. Matthew B. Ridgway proposed the zone be confined to a small area around the new meeting site. Size Causes Difficulty The Reds suggested a large neu tral zone including not only the Panmunjom area but Kaesong and the allied camp at Munsan. However, the disagreement ap parently revolved more about who should determine the zero rather than its size. - w ; Communist correspondents . at Panmunjom. Thursday told allied newsmen that the United Nations command insisted on liaison offi cers defining the zone, whereas the Reds demanded this be settled by the full armistice delegations at their first meeting. Civilian Aides Favored Reds WASHINGTON, Oct. 11 -VP)-The state department said tonight a majority of 25 civilian consult ants were inclined toward event ual American recognition of Red China in 1949, but the department insisted it never pursued that po licy'. It. disclosed that former Secre tary of Defense Marshall, now re tired, expressed belief that recog nition of the Chinese communist regime was largely "a matter of timing." The conference of the 23 con sultants was called by Secretary of State Acheson to discuss. Amer ican policy toward the FarvEast at the time when the Chinese com munist armies were sweeping through China and driving the na- tionist forces of Generalissimo Chiang Kai-shek into a last-ditch stand on the island of Formosa, 100 miles off the China coast Making public the 90,000-word transcript of the closed door con ference, the state- department con tended tonight that it showed re publican leader Harold E. Stassen was "factually incorrect' as to what took place. In Philadelphia Stassen issued the statement: . "The transcript completely proves my earlier testimony and I wiU point it Out in detail at the hearing of the senate internal se- noicurity subcommittee to which I have been summoned at 10 aon. Friday, Oct 12." (Foreign Aid Bill (Despite Attempts to Cut Funds After congress refused to auth orize the full amount the presi dent scaled down his request for funds. By voice vote, the house then sent to President Truman a bill designed to cut off economic and military aid to any nations send ing arms, military equipment or other strategic materials to Rus sia or Soviet-dominated areas. . Responsibility for enforcing the aid ban . is vested in the mutual security a dminlstration. . The i bin permits the president to lift the ban if he determines that continued shipment to Soviet areas of the embargoed materials other than arms, munitions ' or atomic materials, is in the best in terests of the United States. These exceptions presumably would ap ply only In cases where the econ Silverton to Have Dial Phones Soon ' Statesman News Servlc SILVERTON Lowell Brown, manager, reports that the Inter urban Telephone company plans to convert to the dial system within the next year.; New. equipment is arriving and plans are being made toward the con version next summer, the man ager added. The entire plant, including both rural and city telephones, win be converted at about the same time. The change will take about a month to perfect after starting, he believed. Cost of the conversion is in the neighbor hood of $200,000, Brown stated. Government " J Vetoes Sale of Bonus Bonds The federal government said "no" to the Oregon veterans' bonus bjnd issue Thursday, but top state officials went ahead with plans to raise the bonus money. And actual processing of bonus applications was scheduled to be gin today after a drawing of "first" applications by Gov. Douglas Mc Kay and' other officials. The state bonus office In down town Salem has held its applica tion mail since October 1 in order to give distant veterans an equal chance at early processing of their bonus bids. . ' Thursday Developments 1 Here were the top bonus bond developments Thursday: . U.S. Mobilization Director Charles E. Wilson announced from Washington, D. C, that the national- voluntary credit restraint committee-ruled the bonus issues inflationary and advised against its financing during the current emergency.. Wilson - said this decision was jointly agreed by the credit com mittee chairman, the secretary of the treasury, the federal reserve -board chairman and himself. Stand Reiterated In Salem Gov. Douglas McKay and State Treasurer Walter Pear son reiterated that the state is ob ligated to sell the bonus bonds since the bonus financing was ap proved by Oregon voters." Amount of money needed is estimated at $40,500,000. McKay and Pearson, along with L. O. Arens, comprise the state bond commission which now is to investigate possible sale of the bonds to state agencies. It was un likely that financial houses would bid on the bonds ' in light of the Wilson announcement and the re cent absence of bidders when a preliminary $500,000 bond issue for Oregon bonus administrative financing was offered. j' Applications Filed H. C. (Hub) Saalfeld, state bonus director, said his office has 19,405 applications on hand from the first 10 days' mail. These will be considered to have been filed simultaneously, and later appli cations will be filed In the order received, he said. An estimated 140,000 men and women, or their survivors, are eli gible for the bonus, payable to those who were Oregon residents prior to their service. Deadline for filing is Dec. 1, 1952. j r At the bonus office a staff of 58 persons Is in training this week for processing the applications. (Additional details on page 2.) SALEM PRECIPITATION S 1 llaet Start of Weather Tear, Sept 1 This Year Last Year Norma f.42 4JS S.67 omy of a free nation depends on traffic with Russia or Soviet satel lites and. the shipments are not considered to be in a dangerous volume. . f The house gave 'the president everything he asked for in cash except $45,000,000 for the United States contribution to the United Nations Korean rehabilitation agency. It left that agency with a carryover balance of about $50, 000,000 which the appropriations committee said was sufficient for the time being. Republicans tried to cut down the funds earmarked for Euro- Dean military aid to chop down the carryover money. They failed in an attempts, losing up to a score of their own members while picking up only a 'few democratic votes. i dim to Helicon ters Used Again By Marines UJ S. ETGHTW Anrv Hip ATI- QUARTERS, Korea, Friday, Oct. 12-WVU. S. and French tmnm trw day overwhelmed the last hold out peax on "Heartbreak ridge in the ereatest rnmhmH in a month of j heavy fighting fas eastern iworea. ; ; . . The height dominated a com- , munist suddIv route on th t. - I ern fiont and the reds had fought' aoggeai to noid it! But tank-in fan try assaults and furious arul-. lery barraces smashed th nm-' munis ts in their positions, field reports saia. : it j Then the infantry in night at tack swent the i last ml rifimu: from the summit ! t . , Had Been Forced Back . Only yesterday, the U. S. and French troons harf fnmrht slopes of the ridge, roughly 29 mues norm oii tne 38th parallel, only to be stopped after advancing but 40 yards- , North Koreans with Phituu communist- reinforcements held back that onslaught with hand 1 grenades. maehincun. mnrtM and artillery, j . " But with more than 50 allied , tanks ranging to the rear and ! shooting up support areas, the communist position became un- ' rename. . a ! ' East of Heartbreak.1 thm moved nearly j 1,000 men f un equipped . ior Darue to the front xnursaay py neucopter. Tanks Pound Height The fight for Heartbreak's final peak began in late afternoon Thursday after twin tank column had completed, their second straight day of pounding tfae height The two tank columns estima ted thev destroved mnrm than an& log and stone-reinforced bunker and killed 2,000 Chinese and North Korean communist troops. They also Shot Un red artlllerv and mm-- tar positions. in " ' in the air, allied warplanee Thursday hurled their largest sin- , gle day assault i in four months against red troops and. supply lines; ' it s - Air Force Active f - Allied planes roared out in 1,- 045 individual flights, 120 of them against communist ground force in the crags around Heartbreak ridge. . M ' B-29 superforfs hammered Siiv mak and Sunan in the west Allied warshins and namr nlane pounded both the east and jvest coasts.- - ?; t. j ". , " Elsewhere on the eastern front a full battle-eauinned hattnlinn n marines 936 men was flown by 14 gianc aiKorsity nencopters Into the battle line considerably east of Heartbreak ridee in fnii view of the red defenders' It was the second and largest helicopter airim in msioryi ine snuttie op eration was comnleted in six hour and 15 minutes without loss. Nor mally it would have taken up to two days to move the battalion. Moslems Ask i War on ' Hi !.''. - CAIRO. Enrol' Oct Several thousand members of tne Moslem Brotherhood of Egypt de manded tonight that Egypt issue a declaration of t state of war with Britain. IT ! . The demand was made in a res olution annroved bv a rallv of tfc brotherhood, Egypt's second larg est pouycai party. The gathering was in support of the Egyptian government's re cent move to cancel the Anglo Effrotian 20-vear trearr of sllU ance signed in 1936. RATE CHANGES SET Except for parcels, postal rate wiU not be changed until at least after Christmas, ; according to a bulletin received ! Thursday by Salem postoffice., Increased rate are due through congressional ac tion, but final agreement has not been reached. Parcel post rates went up October 1. Forrestal Diaries ; ' . i - Today on page 3, Britain