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".