CFEP In spite of all the unfavorable publicity that the RFC got because of the concessions to political pres sures made! by its directors, a Study of its 1951 report shown that it has continued to function suc cessfully. During the years since it was established by Congress on recommendation of President Hoo ver its earnings have reached over half a billion dollars, after paying interest to the treasury on its capital funds and meeting its ad ministrative expenses. This is on its lending activities. In operation of its reactivated synthetic rubber plant it earned nearly $12 mil lion in 1951, nearly a million on its tin smelter operation, and near ly ten million on its trading in imported tin. RFC was organized primarily to help banks and railroads tide over the strains Of the depression pe riod. That function is no longer necessary as banks and railroads are generally in strong financial position. Most of the RFC lending now is to small business. In 1951 90 per cent of its loans were for amounts of $100,000 or less. In to tal money involved however loans for $500,000 or over were mucn the largest. Many of the RFC loans are on a participating basis with local banks. Of special interest are the com ments of Stuart Symington as ad ministrator (he has since resigned) on the operation of the govern ment's synthetic rubber plants. He wrote: "Under management contracts with private corporations, RFC (Continued on editorial page, 4.) GI Insurance Dividend to Start in March WASHINGTON (flVA dividend of 200 million dollars will be paid this year starting in March to about five million holders of na tional " service life insurance, the Veterans Administration announc ed Wednesday. This will be the first regular dividend on such insurance held by veterans and servicement. VA said. Previously the VA has paid two special dividends on NSLI, one in 1948 and the second last year. The 1948 dividend totalled $2, 800,000,000 ndiwnt to nearly 16 million persons The dividend last year was estimated at 685 million and was paid to about six million policy i holders. The ipayment to the vast major ity of policy holders will be $60, VA officials said. Generally speaking, the VA said, the dividend rate to individuals will be the same as the 1951 pay ment. This amounted, in most in stances, to 50 cents for each $1,000 of insurance for each month the insurance was in force. Boy Wounded In Head by Bullet Blast Statesmaa News Service WACONDA A six-year-old boy suffered half-inch head wound here Tuesday afternoon when he pounded a .22 calibre cartridge with a hammer at his home, State Police reported. The boy, Donald J. Funkhouser, Gervais Route. 1, was taken to a doctor for three stitches, police said. Power linemen working in the vicinity administered first aid to the boy before his parents re turned home. The boy had just returned from school. A playmate told police the boy had taken his parents' rifle, par tially dismantled, outside to try to fire it. Failing that, he put the cartridge on a brick and hit it with a hammer. Police said the force of the ex plosion broke the brick in two. A piece of the cartridge lodged In the boy s forehead. IKE DELEGATE FILES Howard Dent Jr., The Dalles, filed today for delegate to the Re publican National Convention from the second congressional dis trict. He favors General Eisen hower for president Animal Crackers y WARREN GOODRICH UyT & - T ruman Proclaims l95iiCrucial Year' In Global Struggle WASHINGTON (AP) -President Truman proclaimed 1952 a ."crucial year" in the struggle of the United States and the Free World to re-arm against the threat of world war III Wednesday. 4 Warning that Soviet Russia is expanding her armed might, atomically find otherwise, the President declared solemnly that the threat of another global conflict is still "very real." And he appealed to Congress to avoid "political fights" that might harm the natioii in this presidential election year. With Prime Minister Churchill of Great Britain listening intently in the gallery and a- huge unseen audience following his words by coast-to-coast radio and television Mr. Truman told a joint session of Congress: "The world still walks in the shadow of another world war." J 1 f Such was the grimftenor that ran through much of the President's annual "State of the Union" message in which he staunchly defended his leadership and scoffed at his critics as "timid and fearful men." Echoing the late fresident Roosevelt's dictum that "the only thing we have to fear Is fear itself," Mr. Truman said in commenting on the cold war with Jtussia: "The only thing that can defeat us is our own state of riiind.f We can lose if we falter." In general, Mr Triman pledged this country to help build up the Free World's defenses gagainst the threat of aggression and to seek peace by ' following th "hard road" between war and appeasement "Peace is our goal-nof peace at any price, but a peace based on free dom and justice," he said. (Additional details on page 4.) ft nimiii "i i mi- II ill Mobilization to Slash Civilian Goods Quotas ; s WASHINGTOfJ (Congress got the grim news today that the mobilization program has reached the point of direct choice between guns and butter and the preference is going to guns. That was the substance of testimony by Manly Fleischmann, De fense Production Administrator, before the Senate-House Prepared ness Committee. Except in reference to one scarce metal, nickel, he did not phase it just that way. But he made the point emphatically in an outline of the cuts planned sin output of major civilian Jtems for the quarter year beginning April : Major household goods such things as television sets, radios, re frigerators and irdtoers to 45 per cent of the pre-Korea level, down 10 per cent from present production rates. New houses Cut from the present annual rate of 850,000 to 660, 000. . " " Js I Automobiles At least 7 per cent below the current rate. The production chief said "military requirements have been met" in the allocation of scarce materials and "the question of guns against butter has not been squarely presented up to now." But he said the issue "is being presented now" in the case of nickel, with the militafy and "essential" industries getting more than 96 per cent of availably supplies. And in the Detroit automobile man ufacturing area, he said, the choice has become "a question of auto mobiles against ammunition." Churchill Talk Bridges Split Over China Policy WASHINGTON &) President Truman and Prime Minister Churchill, bridged ; their split over China policy Wednesday in pro claiming a solid Anglo-American front against the Communist threat In 'Asia and the Middle East as well as Europe. In a communique issued shortly after Churchill left for New York and Ottawa, they also formally announced that American use of atomic bomber bases in England is subject to joint decision with the British government in time of emergency. Churchill had sought this assur ance from Truman in writing. The communique made these other specific points: 1 Neither the President nor the prime minister believes that war "is inevitable" and both are willing "at any time to explore all rea sonable means of resolving the issues which now threaten the peace of the world. 2 The two will continue "close consultation" on developments which may increase the danger to peace, and they share the hope, that war "with all its modern weapons shall not again be visited on man kind." 3 The British and American governments will give "all assist ance in their power" to bring into being a European defense com munity which "is the best means of bringing a democratic Germany as a full and equal partner into a purely defensive organization for European security." 4 On the Middle East with its critical Iranian and Egyptian problems the two 'men; "found a complete identity of aims" and di rected Secretary of State Acheson and Foreign Secretary Eden "to work out together; agreed policies" for dealing with this situation. They indorsed the project for a Middle East Command. 5 On the Far East, the communique asserted "a broad harmony of views has emerged from these discissions. (J Good progress was reported and early agreement was forecast on measures to provide Britain more American steel and the United States with additional supplies of aluminum, tin and other defense production materials from British sources. 7 The issues of rifle standardization and creation of an Atlantic Command was left open for further consideration. Jail Escapee Found in Jail Louis Percy Tucker, Westfir, who escaped Armistice Day from a six-months sentence in Marion County jail, has been located serving time for disorderly con duct in Seattle city jail, Sheriff Denver Young announced Wed nesday. Tucker sentenced -here for petit larceny, walked away from a kitchen detail. Seattle reported that he began serving1 a 90-day sentence there Nov. 29. When that is completed, he will be returned to Salem to finish his sentence. PAUL BAIRD DISS DEPOT1 BAY (aVPaul Baird, 64, the founder of .this community on the Northern Oregon coast, died in Chula Vista, Calif, Wed nesday, f i". Commercial Club Forms At Liberty -Salem Heights Statesman KTewa Service SALEM HEIGHTS An organi zation to work for the, civic and community betterment of the fast growing Liberty - Salem Heights district, was set up here Wednes day night by 30 residents. Giving the new organization the name Liberty-Salem Heights Com mercial Club, the proponents elect ed temporary officers,, adopted a temporary charter, and' appointed the chairmen of three committee which will serve for 90 days until the club is formally set up. Elected temporary chairman, was Donald Gardner, who. served as unofficial chairman of the meeting at the Salem Heights Community Club. Other temporary officers are Hollo Wilson, secretary, and Neale 1 M issourian Made To 'Eat Crow' Due To Oregon Turkey ST. LOUIS ()-When it comes to talking turkey Missouri Gov. Forrest Smith probably will mod erate his statements a bit in the future. Two months ago Gov. Smith challenged fellow governors to en ter their largest state's turkey in competition here at the National Turkey Federation convention. The governor was sure Missouri would win. But when judges announced their findings Wednesday night Missouri came in sixth in the competition. A 49-pound, 8 - ounce entry owned by Loren A. Johnson of Scapoose, Ore., was the champion. Missouri's bird was a sdrawny 40 pound, 15-ounces. Craney, treasurer. ? Chauncey Del French, who ex plained the purposes of the new club to the assembly, was named chairman of the charter commit tee. Assistant to him are Archie McKillop and Joseph Meier. Pub licity chairman is Mrs. Louis Kirth. McKillop was also named membership chairman. .Everyone in the, area from the south city limits to Boone Road, and from the -Willamette River to McNary Field is eligible for mem bership. Those paying membership fees within the next 00 days will become charter members, the club officers said. The second Wednesday of each month was designated as the meet ing: date. 101st YEAB 16 PAGES PUC Assistant Wrne II. Nann, appointed Wed nesday as assistant public utilities commissioner for Ore gon. Warne H. Nunn Chosen Aide To PUC Chief Appointment of Warne H. Nunn of Salem as assistant public util ities commissioner was announ ced Wednesday by Commissioner Charles H. HeltzeL Nunn will succeed Max Flanery on Feb. 1. Nunn, now classification super visor with the State Civil Service Commission, will have as his principal responsibilities with PUC the procedures and person nel management and training. Flanery, who resigned, entered state service in 1924 with the state traffic patrol, in 1931 became as sistant manager of the Secretary of State's motor vehicle division and on June 1, 1943, was. named assistant to PUC Commissioner George H. Flagg. His future plans were not disclosed. Nunn graduated from: Salem High School in 1937 and from Willamette University in 1941. He served one year with thfe U. S. Farm Security Administration be fore entering the armed forces in World War II. He spent three years in personnel work with the Air Force West Coast flying train ing command. He came to the Civil Service Commission in 1945. The new assistant commission er is married to the former De lores Netz of Salem, and they have three children. Their home is at 675 S. Church St. Nunn is the son of Mrs. J. M. Coburn of Salem. Russ Soldiers Join Yanks at Austria Dance VIENNA, Austria UP) A group of Russian soldiers danced at an American-sponsored sports event here Wednesday night. GI's cheered them lustily. It was the first time since the end of World War II that troops from the East and West have mingled here on such a friendly footing. The appearance of the Russians at the "International Sports Night" in an American Army recreation hall in Vienna was unexpected. They were invited three weeks ago, but they didn't accept until today. French and British occupation troops also took part. The Soviet acceptance was be lieved to part of a new campaign of cooperation and friendship the Russians began recently in Vien na. But, while Western diplomats pondered the significance of the Russian action, from 500 to 600 soldiers of the Western Armies gave its political aspects hardly a thought. Instead they gave more spontan eous applause to a 10-man and three - girl Russian Army folk dance group than they gave any of their own athletes. Brig. Gen. William T. Fitts, Jr., UJ5. Military commander in Vien na, said, "Maybe we can have more such evenings." four? reoaufflgGl Max., MIn. Precip. 44 39 .S3 45 35 Jl 47 S S3 27 trac 41 2 ( JD1 Salem , Portland -San Francisco Chicago . New-York I FORECAST (from V. S. Weathr Bu reau. McNary Field. Salem) : Cloudy with, occasional rain today - becoming cbowery tonight. Little cooler with high today near' 40 and low tonight near 34. Salem temperature at 12:01 ajn. today was 38. 4 SALKM PRECIPITATION Slaea Start of Weather Year. Sect. 1 This Year . Last Year Normal, 26.0S 28.43 lUi . : - Y-.. The Oregon Statesman, Salem, Orecon, Thursday. taradtontt Carlsen's Ship Still Helpless LONDON (iSVThe broken and battered American freighter Fly ing Enterprise was riding out an other Atlantic storm early Thurs day. U. S. Navy reports from the scene predicted with, some re serve that she would be ready for renewed attempts to take her in tow again at daylight. The Navy report said the heavy weather worried Capt. Kurt Carl sen, but he and his one compan ion on the helplessly drifting ship hung on doggedly. With the cap tain is First Mate Kenneth Dancy of the British towing tug Turmoil. The Enterprise, listing as much as 80 degrees as she rolled in a new gale, still was taking on water and riding lower. A midnight report to U. S. Navy Headquarters in London said the sea was running up 10-foot swells. The Enterprise was about 30 miles south of the Lizard, Eng land's southernmost point. "Enterprise still has good right ing moment," the report contin ued, "with no change in list ' or roll at 2000 hours. In radio con ference Carlsen expressed apprec iation for message from parents. Said he deeply touched to know so many people in world interest ed in seeing little Flying Enter price safely reach port. "Plans for rerigging tow include riggings lines around bitts at bow to give Carlsen and Dancy firmer footing from which to work. "No attempts to be made before daylight. Weather still makes any plan impossible now." The lifesaving ship Satellite, with breaches-buoy and rough seas boat-launching equipment, set out early Thursday from Pen zance to join the Flying Enter price convoy. Her job is to be ready with her variety of rescue gear in case of extreme emergency if Carlsen; and Dancy must Jump from a sinking ship. Carlsen was entering the 16th day of his ordeal, much of it spent alone. North Oregon Road Route in U.S. System Change of state highway mark ers to U. S. Highway 26 will bring a Northern Oregon route into the Federal Aid System as part of a new cross-country route from Og allala. Neb., to Astoria, State Highway Engineer R. H. Baldock said Wednesday. State highway markers along the route will be changed to US 26. Where the new route goes along existing federal routes, US 20 and US 101, the road will be marked with both US 26 and the present number. The route in Oregon will -run from Nyssa to Vale via US 20, from Vale to Prineville on the John Day-Ochoco route (US 28), Prineville to Madras on State Highway 27, Madras to Portland on the Warm Springs-Mt. Hood Loop route (State Highway 50), Portland to the Coast via the Sun set Highway (State Highway 2), and then to Astoria via the Ore gon Coast Highway (US 101). The route from Prineville to Eugene, now US 28, will become US 126. It crosses the Cascades through McKenzie Pass. Another change to be made is in the route from Maryhill, Wash., along the Washington side to, the new bridge at The Dalles, through The Dalles, and down State High way 23 to its junction with US 97. The number will be changed to US 197, and will be an alternate route for US 97. Wisconsin, Georgia to Swap School Students MANITOWOC, Wis. (JF) - Sixty youngsters from Wisconsin and Georgia will swap high schools and homes temporarily this winter un der a plan announced here Wed nesday. i Supt. Angus B. Rothwell of the Manitowoc Public Schools said ar rangements were in the making to send 30 pupils to Macon, Ga., and receive the same number here. Details of the program, to be stag ed either in February or March, are beine worked tout witn mjt. Mark Smith, Macon school super- intendent. I believe this is the first inter state exchange of nigh, school pu pils ever contemplated in this country,". Dr. Rothwell said. - Under the plan, the only cost-to the pupils chosen will be for trans portation. Housing-and food will beprovided by the families involv ed, the Macon and Manitowoc POUN DBD 1651 I 1 : s - if T- Fir DIP'S!? Health Survey Starts Toddy JSWWSSJ TSBSSWSJSS Sfll Volunteer workers will take to the field today to begin a countywide survey to determine health needs and services in Marion County. The project is supervised by Marion County Health- Council, a vol untary organization. One of the interviewers will be Mrs. L. S. Shuford (left), 1035 N. 19th St.. here doinx a little practice work with her neighbor, Mrs. Albert M. Anglin, 1029 N. 18th SU and sen Steve. (Statesman; photo.) lizzard Stalls Cars In last Oregon Area By The Associated Press A windstorm that piled drifting snow high on Eastern Washing ton and Oregon highways Wednesday carried a blizzard down into Central and Southern Idaho Wednesday night. Hundreds of vehicles were stalled on highways in all directions from Spokane and the State Highway Department urged motorists to stay home except in extreme emergency. Spokane County Engineer Wil liam Eeeer described conditions as "the worst they have ever been." Some of the stalled vehicles were those of road crews trying to keep ahead of the wind that cut visibility to near zero. The Wash ington Highway Department said small blade plows in many cases proved too light to cut into the drifts. And of its four rotary plows, one was stuck in the snow near Davenport, Wash., since early morning. The storm brought several inch es of new snow to Northern Idaho and by evening had turned into blizzard proportions as it moved south toward Boise. The Idaho roads south of Lewiston were Closed Wednesday night. There were no hardship cases reported Wednesday night despite the many stalled :cars. Oregon State Police reported a number of accidents, but none serious. Some 50 cars were stalled On U. S. High way 30 north of Baker ,Ore., in the afternoon. WILL NOT SEEK HE-ELECTION GRANTS PASS ! (P)-Raymond C. Coulter said Wednesday he could not afford to serve 'another term in the State Legislature, so would not seek re-election. He has served two terms a state rep resentative. youngsters making their homes in the premises vacated by the ex change. ! . , Rothwell told the Board of Edu cation, which approved the plan, that he believed Manitowoc pupils "will , receive a broader under standing of Southern life through attending Macon schools and liv ing in Southern homes." "In proposing this exchange," RotheweU said, "I believe pur pu pils will obtain a firsthand view of the Southern Negro problem Land of the agricultural and busi ness of that area. They also will study the method by which the Civil Wax is taught in Southern schools.". j ; There are no Negro families re siding in Manitowoc, a city of 27,000. 1 Only ljth and 12th grade pupils will " he -considered" f or the -exchange; Rothwell said. January 10 1952 s LTD J-. 1 Labor Gamp Site Proposed For Industries Conversion of the Salem farm labor camp property to industrial sites was proposed Wednesday to Salem Chamber of Commerce. Directors of the chamber asked their industrial committee, head ed by Carl Hogg, to price the 124 acre property and suggest fi nancing by which the chamber could acquire it. Clair Brown of the chamber submitted the proposal to a di rectors' meeting last night at the Senator Hotel. He said the site near Salem Airport is a natural for industrial development as the city expands. The property is owned by Sa lem Agricultural Housing, Inc., which has discontinued use of the labor camp there. The incorpora tion was formed four years ago by Salem growers, packers and other businessmen to set up the camp for the purpose of attracting migrant farm labor. Brown said the property was offered to the City of Salem for park purposes but there was no indication the city is interested in it. He though the property might cost in the neighborhood of $10,000. Chamber President Robert W. Fenix said a study of Brown's proposal Would fit into the 1952 chamber industrial program which was approved last night as top chamber objective of the year. Under this project, plans are starting ' for a five-year program to attract new industry, probably with separate financing. (Additional chamber news, page 2.) Etigne Faces Parking Problem EUGENE (P)-Downtown prop erty owners have been told they must find more parking space or business .will be forced into sub urban areas. . Frank E. Cox, Berkeley, Calif., parking expert, told a Chamber of Commerce meeting that multi story parking f centers are the answef.:'Hesaid surface lotsf are too expensive. - - - 1 Hi N ft I ' ; ''. i ... ..-. J- . .-. . 't. - . i I : . - - " ' ' .4 i i PRICE 5c I ; No. zzs Si ' : I t Vessel StOFI n SEATTLE VPr-Tbe 45r man crew , of the storm-battered' v freighter Pennsylvania abandoned the ship Wednesday night as it- wallowed . bow down in heaVy seas off ibe British Columbia coasU . The men aboard! the vessel re1 dioed their decision to . leave tkss stricxen ship at 4:23 p. m. Three hours later the SS Cygnet III, vessel in the vicinity said the crew had left th4 ship at 4j3. Overside the meoj face ' another T grave peril giant waves and higii winds. t .i Seven vessels ar rushing to the scene as fast as siormr conditions will permit but Coast Guard .- fidals in Seattle sfld it probably 6 Monmouth Sailor On Stricken PORTLAND. Ote. (JP) - The crew list ef the freighter S. S. Pennsylvania, In distress la the North Pacific includes; Edwa4 D. Crawford, oiler, Maaswth, Ore. 3 , will be daylight before any reach the distressed men. They said the decision to leave the ship would indicate it tiwas in grave danger of sinkinga and 'the men had little or no choice. The 7,800 ton ship's. No. 2 hold was flooded with water' and a 14- foot crack had opened on her port side. She wis en r route te Japan Wednesday hcn the noon time SOS came, six hours after she first reported the rjple in her side. More Water Aboard VC By noon, the s&ip was taking . water in the en gin room and No, I noid and its steering gear was crippled. The deck Soad-was being lorn loose. p ; Seven vessels irt the area and from Pacific coastal points . im mediately sped tot the Pennsyl vania's aid. They4 were still t least 12 hours voyage j from the stricken ship and ts endangered crew when the decision to aban don the vessel was! announced. ' Four Life Rafts s I . The vessel had! notified tfee Coast Guard it ha four life rafts 1 aboard but did notssayfwhat their normal capacity would ibe. It was believed, however they - could easily carry the ctewmen if ttae rafts were of normal size. The scene of the sea's latest victim was about 4$5 miles north west of the northern tip of Van couver Island, In one of the Pa cific Ocean's most turgid areas. Wmds up to 47 smiles an hour were whipping the-iea Wednesday ' night and Coast duardsmen said there was little indication ef -letup. i a;; Sails for Japan The PensylvanU sailed from Seattle Saturday with i a general cargo for Japan add had stopped at Vancouver, B. C. It's master, who apparently left the' ship witl his crew, is Capt. George P. Plover of PortlandiOre;; a veteran with the States Line, operators -ef - the ship. its' The Pennsylvania was in dis tress on her last trip to the Or- - lent, when she also developed - crack. It put into JPortland, Ore., where repairs were made. One Extra Name $ II . ' The crew list released by steam . ship line officials in: Portland , contained 46 names. Itiwaa belie ved likely that on man may have left the ship either at Seattle -or , Vancouver, B. CI although the disparity has not been explained. Two planes, one an Air Force Air Rescue Service craft and an other a Coast Guard seaplane are to leave during the night The Air Force plane will carry-; a droppa ble life raft i : (Story also oh page 2.) Blasts Salem Howlin winds twirled throusJs Salem Wednesday imorning, caus ing tittle damage but i making lot of noise. After reaching 43 miles an hour at 27:30; a. m- the winds gave way jlo rain in the . afternoon. And occasional rain was predicted forstoday : with re duced wind. s , The gusts-at the CAA contact tower at -McNary gFieki r were corded as. between , 4p. , and 3 miles an hour; the'reason for can- . celling the Salent stops of two morning flights jbfi United Air Lines. . . . .i ; TRUMAN MESSAGES DUE WASHINGTON ItiPHThe White House announced JVednesday that President- Truman; will send hi economic message .to Congress a Wednesday, Jan. 18, ar-d his bud get message on Monday, Jan. 2L M Craciy 48mphWind 1 i It".