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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Oct. 17, 1951)
1 Ell SI II W7 4 I - 'WASHINGTON, Oct 18-CIV The bouse rejected the compro mise $3,732,000,000 tax increase bill today in a stunning upset that left key lawmakers ques tioning whether any revenue measure at all will be passed this year. - - The 203 to 157 vote against the bill surprised even the unusual combination of republicans and northern and big city democrats who made up the bulk of the -winning side in the roll call. - The forces who turned - it back were composed principally of two groups. (1) Those who oppose a tax increase until gov ernment spending is slashed and (2) those who said the bill hit too hard at low income groups and too lightly at large incomes. , "It apparently was a combi nation of extreme left wingers and right wingers who outnum- 1 be red the middle, commented -Senator Taft (R-Ohio). The plan was to boost the per- MOUNDSVTLLE, W. Va., Oct. and hungry convicts, revolting because they had a dirty cook , and not enough clothing, milled around Virginia state prison tonight. :; About 200 prisoners, armed with to storm the prison commissary but Signals appear to be set green for the financial reorganization of Portland Gas & Coke company. The company has not been in re ceivership or bankruptcy, but got behind on its dividends to hold ers of preferred stock, the only kind of the company's stock which Is held by the public The common stock has been held by American Power & light Co. which is in process of liquidation under the holding company law. So the occasion was deemed right for reorganizing the stock struc ture, creating one class of stock, common stock. Several I plans, were proposed but the securities exchange com mission has recommended and the board of directors have approved a plan , by . which holders of the preferred will surrender their certificates, and receive new com mon stock in the ratio of eight shares of common for one of seven per cent preferred and seven shares of common for one of the six per cent preferred. Preferred stockholders will get SO per cent of the new common and the remain ing 10 per cent will go to the AP&L for its present holding of common stock. Since the AP&L Is in process of dissolution it will either sell the stock it gets or dis tribute It among its own stock holders. The .plan has to go be fore Federal Judge McCulloch for hearing on November 12th. His approval is the final step requir ed, assuming there is no objection or appeal. The SEC has also directed American Power and Light to dis tribute its holdings of 100 per cent of the common stock of washing ton rower company to its own stockholders promptly after Jan uary 1st next if it does not in the interval arrange a sale for the stock. A previous attempt by AP&L to sell its stock Interest in WWP. to public utility districts of Washington was blocked by an injunction. At present no purchase oner (Continued on editorial page, 4.) Max. l 60 65 n Mia. Precip. Ian Fnnciaca Chlcaro 49 - trac 3 - AO S3 tract M AO 7 fact Kw York 73 Willamette River FORECAST (from U. S. weather tu reau, JhfeNary field. Salem) : Partly Cloudy today and tonight. Increasing cloudiness Wednesday, with rain Wed nesday night. Hign today so to ss. low tomsni it ton. SALEM PRECIPITATION Blue Start of Weather Tear. Scot. 1 this Yar Last Year Normal 7.73 , SJS 3.30 Animal Crackers y WARREN GOODRICH QtP 9EN3JJQS IKD ODQQg iOK, o, not . fiy-burer again fat furperP 4 - sonal income tax rates by about 11 per cent, with the Option of paying at present rates and then adding 9 per cent of what the taxpayer has left. I Today's vote threw a big monkey wrench into the ma chinery that had been spinning smoothly toward adjournment of congress at the end of this week. - i . The house asked the senate for a new conference to try for an other version of the legislation. The reception on the senate side was far from warm. .... . ,-. One of the house's own con ferees, Rep. Mills (D-Ark) com mented dryly: j "It would be difficult -to write a tax bill that would satisfy a man who doesn't want? to vote for a tax bill I , At any rate he figured it would be "a matter of weeks" before anything could be worked out. It will take some doing to keep congress here that ! long. ODD lMP - More than a thousand cold the big exercise yard of the West S. knives and broken scissors, tried were driven back by rapid fir ing of the guards lining! the big gray walls. Another group tried to break into the power plant, but were driven off by more gunfire. There were no casualties reported. They: apparently thought that if they could gain entrance to the power station and douse the big penitentiary in darkness, they might get to the commissary. The prisoners - had not eaten since noon. 1 Prison authorities said It would be virtually impossible for the re bellious Inmates to get out of the prison. ' Cons Light Fires As the night wore on. small fires were kindled from odd bits of wood In the yard for warmth. warden Oree Skeen acknowl edged that "tension his been mounting for some time." And an other prison official said "any thing might happen." The warden said a three-man grievance committee appeared be fore him today to protest certain conditions in the prison, i Net Starlnr Clean - 4 "The men complained that one of the cooks was not staying clean and they objected to his unsani tary condition." he said.-"I told them that would be taken icare of. "They also said they were not getting enough clothing, and I ad mitted that was possibly true, be cause we do not have enough funds available for clothes." The Moundsville prison, built to accommodate 900 convicts has a regular population of about 1,800. Several hundred Inmates did not Join in. the mutiny.; Firm Offers to SeU $500,000 In Bonus Bonds An eastern investment house said Tuesday it might be! able to place $500,000 worth of Oregon veterans bonus bonds. . I The announcement came in a telegram from F. W. Horne and company, municipal securities firm in Concord, N. H. The message was directed to Thomas jLawson McCall, Gov. Douglas McKay's administrative assistant. I McCall turned the letter over to Deputy State Treasurer Fred Pau- lus, who also is secretary of the state bond commission. The telegram says the company believes we would be ablo to place all or any part of the half million state ox Oregon bonus bonds for which you received no bids October 4." I The firm asked that, if interest ed, the state treasurer contact it to open negotiations. i - If sold the $500,000 would used to process veterans applica tions. The bulk of the bonds to pay the bonus, about $40,000,000 would remain to be sold. ; Mrs. Paul Wallace, Active In Salem Civic Affairs, Dies Mrs. Paul B. . Wallace, fpr many years active in Salem social, civic and. church affairs, and; former principal of McKinley and Engle wood schools, died Tuesday at her home on Wallace Orcharctb- Funeral services will be held at 3 pan. Thursday at the Presbyter ian church, of which she was -a member, under the direction of Clough-Barrick company. Born Helena Willette in Strongs town, Pa she was the daughter of George Spang Willette and Loun etta Hill Willette. With her? parents she moved to Washington as a young girL She received her edu cation in the public schools there and at the College of Puget Sound, Western Washington College of Education, and at the University of Washington. ,- - - She taught in the elementary schools in Seattle for many years before coming to Salem as a school principal. f r I In 1923 she married Paul Black Wallace and established the home at the Wallace Orchards, which has become widely known through out the Willamette valley.; 101st YEAH Tourist Lures - t - - - - ': - ' tmmmm t-.siv..- sswwhj, x.- i i n i i n i. i in nui ats u n niwieiiii.aiijiimuimiiinmimi.Li.j ., - - y. H I . j tl - " ( v : ft f" p- ' v V " Hi y( h- I ; I'll - j Ml " f r "V li I x iff sv.i Vn . n , , m v. vs- ' TTIiiiiiiii' '-- !-: f Carl W. Jordan, left, will be new state highway department travel bureau director November 1, upon retirement of Mauley F. Robiaon, center. Erie B reman, right, will fill Jordan's post as assistant di rector. The trio Is looking ever advertising layouts for next year's tourist season, and on the wall are full color ads used in the past years in nationally circulated magasines. (Statesman phfrto.) Human Bones Uncovered at "A Valsetz Depot Statesman News Service VALSETZ. Oct. 16 Workmen uncovered a human skeleton today while digging a drainage ditch near the Valsetz depot. Linn County Coroner J. Paul Bollman of Dallas will investigate the matter Wednesday. W. B. Brownjohn, superintendent of the Valsetz Lumber company couia oi- fer no explanation concerning tne bones. Brownjohn said a crew of his men were raising the Valsetz de pot of the Valley and Siletz rail road to put new timbers under it. And it was while a drainage ditch was being dug out that one of the crew uncovered the bones. The remains were several feet below the surface of the ground and apparently had been lying there many years. Brownjohn said the men did not remove the bones, pending the arrival of Bollman. The site of the depot is in the heart of this small logging com munity. In pioneers days this was an Indian garnering place. ... Swiss Convict Davis of Spying LAUSANNE, Switzerland, Oct lO-i-The Swiss federal court to day convicted Charles E. Davis, 23, Pasadena, Calif , of political espionage. .The American negro was charged with spying on com munists and United States diplo matic personnel in Switzerland on behalf of U. S. agents and Senator McCarthy (R-Wis). The court sentenced Davis to eight months imprisonment or dered him expelled from Switzer land and barred his re-entry for a period of 10 years. During the more than 30 years that Mrs. Wallace lived in Salem, she was prominent in many civic, social and church activities. She is a past president of the Town and Gown, "a member of Gaity Hill Garden club, the Brush College Helpers, The Thursday club, the Study dub, the YWCA, and the Town Club of Portland. She was associated with many social and education activities at Willamette university, taking an active interest In establishing " the university chapter of Pi Beta Phi sorority, and became a member of that chapter. For many years she was head of the primary department of the First Presbyterian church Sunday school. Besides her widower, she is sur vived by two daughters, Mrs. Rob ert Gormsen and Mrs. Robert Guild, both of Salem; two sisters, Mrs. Paul Mullen of WiHamina, and Mrs. David Bottker of Seattle; two grandsons, Paul Wallace Gormsen, and Robert Stuart Guild, both of Salem. Interment will be in City View cemetery. 14 PAGES Tli Planned as Jobs Switched Sen. Taft Tosses Hat Into Presidential Ring WASHINGTON, Oct 16 -OTV A broadly smiling and apparently confident Robert A. Taft formally threw his hat into the presidential ring today. : J , ; ....... r ... .. The Ohio senator made the long-expected announcement of his candidacy at a jam-packed, steamingly hot news conference. He Dre- dicted the republicans would nominate him and the-voters would elect California Man Given Accident Prevention Job r - ' Harold Somerfield, formerly em ployed by the Division of Indus trial Safety for California, has been appointed director of the ac cident prevention division of the state Industrial Accident commis sion, the commission announced Tuesday. He was chosen by a nation-wide competitive examination, and was a unanimous choice, the commis sion said. i i Somerfield has had 14 years ex perience in safety engineering and accident prevention work. From 1937 to 1941 he was employed as safety and first aid instructor for the department of water and pow er for the city of Los Angeles. He later served as a safety engineer for the California Compensation Insurance fund. He has been assistant safety en gineer, educational safety engin eer, and for the past three years,' senior safety engineer for northern California in California's industri al safety department, j Charles M. ' McBee, who " has served as acting director of the ac cident prevention division for the past year, will resume his former capacity as safety engineer of the division in charge of the machine guarding program; and safety stan dards. ; Fleischmann, Ex-Yeast Czar, Kills Himself SANTA BARBARA, Calif., Oct KHAVMax C. Fleischmann. 74, former head of the Fleischmann's Yeast empire, shot and killed himself- today at the home of his wife in nearby Carpinteria. i He came here about a month ago from his home in Nevada for an operation which disclosed what doctors ' said was "an incurable malignancy.' i Fleischmann became chairman of the board of his father's yeast factory in 1925. i He sold the Fleischmann Yeast and gin factories in 1929 to the J. P. Morgan banking house for about $20 million worth of stock in Standard Brands.. Next year he moved to Santa Barbara and expended hundreds of thousands of dollars in philanthropy. MacArthur Attends . . . ... . I i Legion Convention MIAMI. Fla, Oct 16-(P)-Mlam- ians poured into the streets today by the tens ox thousands zor glimpse of Gen. Douglas MacArth ur and to watch the American Le sion's mammoth 8-hour-long pa rade. MacArthur will address the Iegion at 1 p. m., EST, tomorrow. Oregon Statesman. Salem, him to the, White House on a plat- lorra pledging: 1 Restoration of progress "with in the- principles of liberty rather man tne principles of socialism. 2 Restoration of "honesty and integrity" in government, with an end to corruption and influence peddling. 3 A restudy of U. S. foreign policy to halt the spread of com munism, "including the establish ment of Korea as a free country and the completion of the arming of western Europe to enable it to defend itself against Russian ag gression." For Taft, son of President Wil liam Howard Taft and regarded by many as the senate's "Mr. Republi can" since his dominant role in the GOP-run 80th congress, this was the third all-out bid for his party's presidential nomination. He lost out to Wendell L. Will kie in 1940 and to New York's Gov. Thomas F. Dewey in 1948. Salem Senators Stockholders Re-Elect Board Current directors of the Salem Senators baseball team were re elected Tuesday night at the an nual stockholders meeting. They are Donald Young, Russell Bone- steele, Robert L. Elfstrom, Tom Holman and Ben Pade. The meeting drew 135 of the home-town corporation's 832 stock holders. They represented barely more than a quorum of the 2,000 shares of stock. r Officers reported the club show ed a net operating loss of $18,981 for the year, but noted that much of it was spent hi building a ball team from a nucleus of one player. "I feel the season was a success, said Donald Young, club presl dent (Additional details on sport page). L Jury Convicts Dr. Buck in Abortion Case - PORTLAND, Oct 18 -()- A circuit court Jury today convicted Dr. George H. Buck, Portland physician, of manslaughter by abortion. . - The Jury took Just five minutes to reach its verdict against Buck, whose office was one of eight places police raided last spring after a grand jury had Indicted five chiropractors, a naturopath and Buck on abortion charges. - He was convicted of perform ing an abortion on Mrs. Viola Cole Friday, 23, Salem,, Ore., last 'December. , Circuit Judge Frank"7?Lone gan said he would sentence Buck Friday. The penalty is one to 13 years in prison - and a possible fine up to $15,000. It was the first of the eases to come to trial. POUNDDD 1651 i- ' Oregon, Wednesday. October 17. OnO Rabi m Pieces' by Mob ...... v . .. - KARACHI, Pakistan, Oct 1MJP) -Prime Minister Liaquat All Khan was assassinated tonight by a Mos lem extremist who wanted -a holy war with Hindu India. . , : . The assassin. Shir Akhtar, was killed by a mob which surged onto the speaker's platform at Rawal pindi, 30 miles from the seething Punjab's border with disputed Kishmir state. Official sources said the mob caught the killer and "tore him to pieces." The 56-year-old Liaquat long a conciliatory influence in the em bittered relations with neighboring India, had just started to address a meeting of the Moslem league. He was shot twice at close range in the chest and head, and died soon after 5 p. m. in a hospital after an operation, i The Pakistan cabinet was ex pected to meet at once to con sider the dangerous new state of Pakistan-Indian relations that may arise from this newest instance of terrorism in the Moslem world, the scene of 13 such assassinations since early in 1945. : Some of the assassinations notably in Egypt Iran, Jordan and Syria have had far-reaching results in relations with western powers. Foreign Minister ' Sir Moham med ' Zafrullah Khan, a possible choice to succeed Liaquat as prime minister, hurriedly prepared to come home from United Nations headquarters in New York. Paki stan has no 'deputy prime minister so it is still uncertain who will succeed Liaquat No disorder was reported in the Moslem nation of 80,000,000 peo ple. But preparations were being made for a hasty funeral here to morrow. Mindful of the possibility that the uneasy peace, may be upset India's leaders hastened to send condolences. Prime Minister Jaw aharlal Nehru paid tribute to the fallen Liaquat in one moving mes sage, declaring "in this moment of sorrow all differences are for gotten." "I shall greatly miss Liaquars cooperation in the task of build ing up a lasting friendship be tween India and Pakistan," declared. he Movies Taken Inside Heart NEW YORK, Oct. 16 -WV The first movies ever taken inside the living heart were shown today at Montefiore hospital here. You see the heart pumping. You see the valve open and close between the two chambers on the left side of the heart The camera eye is put through an opening in the heart to make the interior mo vies. The heart is that of a dog, asleep under anaesthetic. The pictures were made by Drs, Elliott S. Horwitt and Adrian Kan- trowitz, Montefiore surgeons, and Antol Herskovitz, hospital photo grapher. l Uf : 1 a Mosie Killer Torn to Tavern Policy Tops Discussion List at League of Gties Meet By Robert E. Gangware City Editor, Tho Stateaman PORTLAND, Oct 16-(Special)-Six hundred city officials hashed over Just about everything from truck routes to basic bookkeeping here today as the League of Ore gon Cities put its annual conven tion in full swing. : T i m e 1 1 e s t municipal interest centered in a new liquor control policy based on a state attorney general's ruling that entertainment in beer places must be limited to radio, television or phonograph. But Chairman 1 Robert L. Elf strom of the liquor control com mission said a second opinon from Attorney General George Neuner is now needed to elaborate the policy. (Additional details on page Salem officials were active among the men and women who gathered seriously in large meet ings or informal groups to ex change ideas on municipal prob lems. Mayor Morris Milbank of Grants Pass, league president was happy over the larger - than - expected turnout for virtually all general sessions and sectional roundtables going on in the Multnomah hotel. Between meetings, lapel -carded 1951 PRICE 5c Slain at.-?-.-:-.'.-., x Jtwitv-Aix5 KARACHI, Pakistan. Oct 16 Li aquat All Khan, premier of Pak istan, who was assassinated to day by a moslem extremist Red Units, Jets Bag 9 MGs U. S. EIGHTH ARMY HEAD QUARTERS, Korea, Wednesday, Oct. 17 (iiP American troops closed a trap on a communist battalion today and drove within three miles of the- big red central Korean base of Kumsong. The hard-fighting 24th division and two South Korean divisions TOKYO. Wednesday, Oct. 17 (ffVGen. Matthew B. RIdgway's headquarters today announced that allied and communist UaJ on officers have made consid erable progress ia their talks at Panmunjom, Korea, seeking re newal of trace talks. The an nouncement cautioned, however, that "some unresolved issues" must be settled. . , have won more than 40 peaks in five days of roaring . offensive along a 22 mile front "We put the cork in the bottle," an allied officer said. The Americans snapped shut their trap less than 24 hours after U.S. airmen handed the commu nist air force its worst Jet licking of the war. The. fifth air force said U.S. fliers shot down nine Russian-type Migs and damaged five others in two swirling dogfights over northwest Korea. It reported only one F-86 Sabre Jet damaged in the flashing battles between 70 U. S. and more than 150 red jets. Allied officers estimated that nearly 800 .reds were caught in the trap south of Kumsong. , The bulk of them were dug in on Fortress mountain, the high est point in the area. But their escape was cut off by allied ma chine gunners and artillery. SEARCH FOR BABY FUTILE MICHIGAN CITY, Ind, Oct 16 -ff)-Hope dimmed tonight as a third full day elapsed in the futile search for four-day-old Lawrence James Lyons taken last Saturday from a crib in St. Anthony hospi tat delegates milled around the lob bies, continuing discussion or ex amining the exmbits oz maps, sketches, publications and models pointing up new ideas in city ser vices. Salem Mayor Alfred W. Loucks presided over the afternoon gen eral session today, when a city- state relations theme carried through discussions of liquor pol icy, highway projects, air and stream pollution. Other Salem officials were busy, too. Engineer J. H. Davis conduct ed a public works meeting on sewers, streets and contractor re liability. Vernon Gilmore was on a recreation ' panel at which dele gates showed interest in a Salem administration proposal for city centers combining fire station, branch library, gymnasium and other facilities. Peery Buren was among leaders at a session of mu nicipal judges. He was elected vice president of the group. . Salem Alderman Thomas Arm strong attended today's sessions, as did Assistant Engineer Joseph Fjtzgerald. Dozens of other Salem faces were to be seen at all meet ings where state officials were on hand to lecture, answer questions or advise. 7. Allies Ensnare mm 'If British Bullets tians In Suez Riot CAIRO. EevDtlOct 18 British troops - fired i on rioting. Egyptians in two cities on the St canal today. From seven to seva teen persons were reported killed ana scores in i urea. . The British commander nled! that his troops will remain in the canal area desnit tha f tnrm : King Farouk'r government to east them. Britain announced that re inforcements are on the way. A British army communique' said "a small number of rioter" were killed and a British enlisted man was wounded in clashes at Ismailia and Port Said. Egyptian officials at Tsmaili said seven1 Egyptians were killed and 74 injure i there and that foue more Egyptians had been killed ia rioting at Port Said. A Cairo news paper put the total dead at 17, including two Britons, and said 4 least 80 had been wounded. where all the British and Euro peans in the town have their homes was grimly guarded ; tonight by British troops behind, barbed wire barricades. ' s : - i Egyptian Premier Mustache FJ Nahas Pasha .issued a statement to newspapers urging the people to remain calm, if . "Some incidents have occurred and I am sorry that these han- Ttened " th tafmen aatri T a asking you to remain . calm be cause what happened could stand in the way of our national aspira tions, owing to the deeds f ir responsible persons. : - - , .f.,,t The British - communlaue said the situation at the. headquarters city of Ihmailia is now under con trol after a morning in which 1m canteen and cars were burned and British troops opened fire to clear the mob. . . ' I The British commanader. Li. Oen. CXp-nran TVclrfria inIA hl t tachments in a broadcast "we are not going to be turned out' forced out or knocked out" of the canal area. . . . "We are not looking for trou ble, he said, "but we shall deal with it xmite firmly If we meet if ind Pocket ABERDEEN, Wash Oct l(Mn A gas well strike that was de scribed as "impressive and prom ising" was reported at a beach tideland oil well today. The gas pressure was enough to scare authorities into, keeping the public away for fear a car's pockets. Some showing of oil also was reported. i . uivm v w an v ; aaa - v v- p The well is on state-owned beach land, about ' &0 Xeet above high tide mark. It is north ol Grays Harbor, and about 200 yards from a Onion Oil Company well that yielded oil last year, but not in commercial quantities. The gas pressure, came at 3,711 foot depth. The pressure was im ported at 2,000 pounds a square inch. Drillers said that was just about normal for a well "coming in." I1 There was no way to tell hew much volume there might be. Flush Proves Exensive, And Not in Poker Game SEATTLE, Oct. 18-ifVThre- year-old Esther Sorensen doesn't play poker but her flush cost her daddy, T. T. Sorensen, $70 today. Esther 'was helping Mommy clean house and was given the -chore of emptying ash trays in o the toilet bowL She did, plus $ 0 in currency Pappy had left alon-, side the ash tray for payment of some bills. I Forrestal Diaries Today on page 9. KfflEgyp Drillers F Gas At Aberdeen