7cathcr
Max.
S3
Mia. Preclp.
35 .18
38 .13
-3 M
Salens .
Portland
Chicago
12
Vnrlr St
17 .00
Willamett Kiver 4.7 xeei.
rORFCAST (from U. S. weather bu
reau. McNary field. Salem): Cloudy
with rain and fusty winds today and
tonight. Little change in temperature.
Highest today near 50: low tonight
near 40. Salem temperature at 13:01
today was 54.
Qmni tt tke Grewta ef Ortfea
POUNDDD 1651
101st YEAH
IS PAGES
The Oregon Statesman, Salem, Orocjon Wednesday. January SO, 1952
PRICE 5c
No. 313
DOOM)!
SDft OETD
1
Egypt
Said Willing to
Talk of Treaty
Order Restored in Cairo as Police
Keep Tight Rein of Martial Law
LONDON (JP) The London News Chronicle Wednesday quoted
Egypt's new Premier Aly Maher Pasha as saying he was prepared to
discuss the formation of the Middle East Defense Command pro
,caH hv the United States, Britain, France and Turkey.
EE.
EDDQS
nns
Winston Churchill has arrived
home to a bubbling caldron of
troubles. His first cabinet meeting
dealt with the eruption of na
tionalism in Egypt- The abrupt
change in government ordered by
King Farouk gives a breathing
spell, but the new premier, Aly
Maher Pasha, has pledged himself
to pursue the objective of his
predecessor: expulsion of the Brit
ish from Suez and the Sudan.
Churchill faces too the danger
ous trade deficit which is ham
stringing Britain. The United
States has thrown a "short rope
to Britain in the form of a $300
million grant in military aid, tak
en from the Mutual Security Ad
ministration fund. This serves to
shift from British to American
shoulders part or the burden i of
rearmament. This dollar injection
will give only temporary relief.
Either more must be provided or
drastic reorganization made in the
British economy.
The London Economist, one of
the sanest of British publications,
hoisted urgent storm signals re
cently. Anticipating ChurchiU s re
turn it laid out the problem con
fronting him, "cold turkey.' Its
summary is so clear and complete
it is worth reprinting for the
: Continued on editorial page, 4)
Girdle Hides
Fur Coat to
Win Verdict
NEW YORK (JP) Two women
shoplifters were on trial Tuesday,
accused of stealing a Persian lamb
coat by hiding it inside one of
their girdles.
"It Is physically impossible to
do such a thing as this," said de
fense Attorney Carson D. Baker,
in a ringing tone of confidence.
Up rose Assistant Queens Dis
trict Attorney James P. McGrat
ton, former college boxing cham
pion who weighs 180 pounds. He
wiggled and turned and finally
twisted the girdle up onto his
hips.
Then the prosecutor crammed
the stolen fur coat inside the
girdle, strode back and forth be
fore the jury as Baker paled
took a slight bow and said:
"I leave it to you to decide
whether it could or could not be
done."
The verdict guilty.
IXAN. HUNGARY AGREE
TEHRAN, Iran (jP)-The Iranian
government announced Tuesday it
had agreed to export oil to Com
munist Hungary under a new bar
ter trade agreement.
Animal Crackors
y WARREN C00&RICH
k pop e ? c just,
RlPCD
jj Pl. W MAVOCM-KINNByy Symdto. Inc. gLT
Premier
lUailt L A O,0Wa O t f
tapha Nahas Pasha, whom King
Farouk ousted on Sunday, had re
jected the Western proposals for
the command.
The News Chronicle said its cor
respondent in Cairo, Bruce Roth
well, in an exclusive interview
with the new premier asked him:
"Do you have any long-range
view on collective security in the
Middle East?
Rothwell said Maher Pasha re
plied: "Yes. Since 1946 I have always
pleaded for a regional organiza
tion inside the United Nations
charter. I accept collective secur
ity on that basis. I am ready to
discuss the Middle East Com
mand with the four powers. The
question of a military base for
this is the key factor. I am pre
pared for a full discussion of con
ditions. The important thing is
that it should be on the basis of
the United Nations charter."
England Asks Peace
LONDON (JP) Britain appeal
ed to Egypt's new government
Tuesday to put out the fires of
hatred and held out the hope of
a peaceful settlement of the bloody
Suez Canal dispute.
In a conciliatory tone. Foreign
Secretary Anthony Eden told the
House of Commons he believed it
was possible to reach a settlement
which "satisfies the legitimate na
tional aspirations of the Egyp
tian people and at the same time
does not jeopardize the security
of the Free World."
CAIRO, Egypt (JP) Premier
Aly Maher Pasha's new govern
ment kept a tight rein under mar
tial law Tuesday and tried to ease
Egypt back to order and quiet.
Five more bodies were recov
ered from the charred ruins of the
Turf Club and Sherhard's Hotel,
bringing to at least 67 the num
ber killed by Saturday's torch
bearing mobs.
Two bodies were picked up in
the Turf Club, where 11 died. So
far nine Britons are reported to
have been ; killed, only three of
them identified.
Business sources estimated Sat
urday's damage at more than 287
million dollars.
Curfew Enforced
Armed troops efficiently en
forced a 9 p. m. to 6 a. m. curfew
Monday night and challenged any
one on the streets without a pass.
Squads continued to patrol the
streets.
Dispatches from the Suez Canal
Zone said there were obvious
signs the British Army of 50,000
men was ready to speed into Cairo
should there be new rioting that
threatened British lives and prop
erty. The WAFD newspaper Al Misri
said Premier Maher Pasha was
trying to form a united national
front representing all Egyptian
parties to support and advise his
all-independent government
The newspaper said Maher
Pasha, in order to get the support
of ousted Premier Mustapha Na
has Pasha's Wafdists, must adhere
to the outgoing government's pol
icy of rooting the British out of
the Suez Canal Zone and the
Sudan.
Britain to Cut Down on Food,
Tobacco, Socialized Medicine
LONDON (JP) - Prime Minister
Churchill's government announced
a program Tuesday to cut down on
Briton's food, tobacco, socialized
medicine and many other things in
a dramatic bid to stave off na
tional bankruptcy.
Chancellor of the Exchequer R.
A. Butler Said Western defenses
against Communism would be en
dangered by failure of the big new
campaign to "live within our
means." ;
The Lapr Party agreed In cau
cus that most slashes in govern
ment spending were, reasonable
but was angered' by proposed cuts
in the socialized medicine pro
gram which: it fathered.
Laborite strategists were report
ed to have 'prepared a motion of
censure of the health .issue, charg
ing the Conservatives with break
ing campaign pledges. If the mo
tion is introduced in the Bouse of
Commons. ' Churchill would be
forced to seek a vote of confi
dence. With majority of 14 In
Leslie to Install School Officers Today
30
:. . . 1
fry, -iS&Qte&t&ii.
w-. -;
1
I!'.- -
New student body officers will be Installed at Leslie Junior High School today at a general assembly.
Pictured above are the new officers who will take their posts. Front row from left, Rita Bridge, trea
surer: Betty Bishop and Betty Harrison, both song queens; and Bob McCandlish, vice president Back
row, from left Nancy Payne, president; Delmer Funk, sergeant-at-arms; and Sam Eismann, yell
king. All are in the ninth grade.
Justice Tooze
Criticized by
Neuberger
PORTLAND (JP) - State Sen.
Richard Neuberger criticized As
sociate Justice Walter L. Tooze of
the Oregon Supreme Court, elect
ed under the nonpartisan judiciary
act, for what he said was partisan
political activity.
A staatement from Chief Justice
James T. Brand which said "the
purpose of the nonpartisan judiciary-
act was to remove judges
from politics," was released by
Neuberger, a Democrat.
But the chief justice added that
"the matter of interpreting the
spirit and underlying purposes of
the act is one for decision by each
individual judge."
Justice Brand said he sup
ported the canons of judicial ethics
of the American Bar Association
which said in part "... it is
inevitable that suspicion of being
warped by political bias will at
tach to a judge who becomes the
active promoter of the interests of
one political party as against an
other." "I see no reason why Oregon
should lag behind the American
Bar Association in a matter of
this kind," he said.
Neuberger said he had asked
Brand for the opinion.
Tooze, a Republican like Brand,
is a supporter of Sen. Robert A.
Taft of Ohio for the Republican
presidential nomination. He at
tended the Western Regional Re
publican Conference in San Fran
cisco earlier this month.
Officials Tour
State Hospital
The State Board of Control, on
its annual tour of state institu
tions, spent most of Tuesday at
the Oregon State Hospital here
conferring with Dr. Charles E.
Bates, superintendent and some
other Institution heads.
On Wednesday the board will
confer with George Stadelman,
The Dalles, in connection with
Hillcrest School for Girls and
the Oregon Boys School. He is
chairman of the advisory com
mittee of these institutions.
the house, Churchill seemed pre
pared to meet such a challenge.
Butler announced a cut of ISO
million pounds, about 420 million
dollars, a year in British buying
in the United States and elsewhere
abroad. A nation already beset
with shortages will have less of
many things meat, fish, automo
biles, clothing, furniture, toys.
In a. move intended to channel
necessary manpower into defense
projects, it was decided that non
essential industries will be forced
to hire all labor through govern
ment employment agencies.
For the first time there will be
small charges for medical pre
scriptions, dental treatment, wigs,
hearing aids, surgical belts and
hospital care formerly supplied
patients without charge under the
tax-supported national health serv
ice.
"Our life blood Is draining away
and we've got to stop It" Butler
said in a talk over the government
radio.
v
7
4
urn v
(Statesman photo.)
Liquor Board to Vlove
Headquarters to Salem
Oregon's state liquor headquarters will move to Salem about May
1, it was announced Tuesday by Robert L. Elf Strom, chairman of the
Oregon State Liquor Control Commission.
Negotiations are underway between liquor and highway officials
Martine-Lallys
Win $2,388
On Quiz Sho w
Mr. and Mrs. Luis Martine-Lal-ly,
Salem residents now on a sail
ing trip around the world, struck
a $2,388 jackpot on a California
radio show, it was reported here
tills week
C. William (Bill) Hall of Sa
lem, who visited Los Angeles,
Calif., last week said the Martine
Lally's won the .money on the
Groucho Marx radio quiz show.
The globe-trotting couple are an
chored at Long Beach earning
money to continue their trip.
Hall, president of Your Town
Press, Inc., said the Martine-Lal-ly's
are ready to sail again in
"about May."
The program on which the cou
ple hit a winning answer was re
corded earlier for release tonight
over NBC. The Martine-Lallys
outfitted their 25-foot boat at
Portland last fall, and after a se
ries of adventures reached Long
Beach. They intend to sail across
the Pacific.
'If You Can't Beat
Them, Join Them'
RENO, Nev. (JP) M. A. "Tiny"
Fairchild, former part-owner of a
meat packing company here, went
out of business last year with a
blast at the Office of Price Sta
bilization. He said OPS ceiling prices and
slaughter quotas made it impos
sible to operate the packing plant
at a profit
Tuesday, the OPS announced
Fairchild has been appointed
head of the foods section in the
district office here.
Gvil Defense Chief
At Mt. Angel Named
Statesman Newt Service
MT. ANGEL Appointment of
T. B. Endres as civil defense chair
man for the Mt Angel district was
announced Tuesday by Mayor Ja
cob Berchtold.
Endres replaces W. Verboot who
resigned. The latter had been
chairman since the fall of 1950.
Endres is active in many civic
affairs here.
STAMP MEETING SUNDAY
ALBANY Exhibits, demon
strations of engraving and a stamp
auction will feature the annual
regional meeting of the Albany
Stamp Club at the Bureau of
Mines Bkig. 2 here Sunday, Feb.
3, from 2 to 5 p. m. Collectors
will be present from Eugene, Cor
vallis, Lebanon and Albany.
RAIN, WIND PREDICTED
More rain and wind is predict"
ed today by the U. S. Weather Bu
reau at McNary Field, with little
change expected in stream levels
in this area. Oregon highways
were open but motorists were
warned to carry chains across the
Santiam Pass.
BUSINESS SLUMP
ST. LOUIS (AVThe last horse
collar factory in St Louis closed
Tuesday the owner Eugene
Kohrmann ' says he hasn't sold a
horse collar since 1940.
r'
. I '-of
'fa
H.fliLiiHtWiTnUWAl 9
for renting of 3,000 square feet of
floor space in the new State High
way Building to the liquor com
mission. Office space being con
sidered would be located on the
fifth floor.
Liquor headquarters has been in
Portland since repeal of prohibi
tion in 1933 although state law
requires the head office to be in
Salem.
Into thfe proposed new liquor
headquarters space would go the
state liquor inspectors and person
nel of the privilege tax office
which is now located in downtown
Salem. A hearing room for meet
ings of the commission also would
be included.
In another change affecting state
liquor operations, arrangem e n t s
were completed Tuesday for sev
eral of the state liquor inspectors
to get desk space in branch secre
tary of state offices in towns
around the state. The space would
be rented under a plan designed to
reduce travel expenses.
Counterfeiter
Suspects Freed
PORTLAND (JP) - Two persons
accused of helping In an attempt
to counterfeit dimes at the State
Prison were freed by a federal
grand jury here.
The accused were Milton S. An
thony and Lucy McGinnis Jack
son. The not-true bills were re
turned Monday.
Anthony, released from the
prison late last month, was ac
cused of possessing a mold from
which dimes had been made. Mrs.
Jackson, wife of Dewey Jackson,
life-termer, was charged with
passing some of the dimes in Sa
lem stores.
Walker Says Bids for
Treasurer Job 'Remote
PORTLAND (P)-State Sen. Dean
H. Walker, Independence, said
Tuesday the possibility of his be
coming a candidate for the Repub
lican nomination for treasurer was
remote." He said friends had
urged him to run.
Competition in
Spelling Keen
Are the 7th and 8th graders
of Marion and Polk Counties
learning to spell?
Well, they're certainly try
ing, and from all reports, this
year's competition for the $100
defense bond and other prizes
in The Stiteima n-KSLM
Spelling: Contest will be keen
er than ever.
Two of 84 participating
schools already have chosen
their winners. The top speller
in each school win compete in
one of nine semi-finals in
March, and the top three spell
ers from each semi-finals will
compete in the grand finals in
Salem at Parrish Junior Hlglk
School on Thursday night
April 1.
Tear COMPLETE Newspaper
V
Japan
To Snub
Russia
By JOHN RANDOLPH
TOKYO (JP) Premier Shigeru
Yoshida Tuesday ruled out the
possibility of establishing "friend
ly relations" now between Japan
and Russia because of "unpleas
ant" issues separating the two
countries.
Yoshida's statement, made dur
ing questioning by members of
the upper house of the Japanese
Diet, came in the midst of rapid
fire developments In the shaping
of Japan's new post-treaty foreign
policy and defense alignments.
1. Russia intensified its wooing
of Japanese industry and suggest
ed a trade treaty with the Soviet
Union, exchanging Japanese in
dustrial products for Russian raw
material.
2. American and Japanese offi
cials began detailed negotiations
on security talks designed to lead
to a virtual merger of Japanese
American defense efforts in the
part of the world.
3. The Foreign Office reaffirm
ed Japan's intentions to enter into
treaty relations with Nationalist
China with talks to begin in mid
March. 4. A Tokyo newspaper disclos
ed that Japanese firms have been
making bombs and gun parts for
the United States and that other
Japanese companies, some of them
munition makers before the World
War II, were dickering for con
tracts to make tanks.
Porch Lights to
Signal Dimes
Drive Workers
A lighted doorstep after 7 p.m.
Thursday will signal to the March
ing Mothers that a donation is
being offered there to the 1852
Marcn of Dunes.
The Mothers' March will be fi
nal event in Marion County's fund
solicitation on behalf of the Na
tional Foundation for Infantile
Paralysis.
This event will be announced by
combined whistle blasts from the
Oregon Pulp & Paper Company
and the large steamboat whistle
that was brought here for use as
a civil defense air raid siren. These
blasts will act as a signal reminder
for residents to turn on their porch
lights.
The Mothers' March is a state
wide move to increase the Dimes'
fund and will be conducted by the
mothers living in local neighbor
hoods. Some 1,500 Salem mothers
will take part in the program as
will 500 other mothers in sur
rounding towns of the county.
March of Dimes receipts here
now total $9,348, it wss reported
Tuesday by Stuart Compton, trea
surer for the fund drive.
Receipts from the benefit box
ing match sponsored bv the Salem
Cherrians and the ball sponsored
by the Eagles Lodge are yet to
be reported. Compton estimated
that they will add approximately
$1,000 more toward the goal $20
000. '
Cow Shot on Ranch
Near Scotts Mills
Authorities were still searching
Tuesday for the culprits who killed
a 600-pound cow on the A. J. Man
ion ranch above Scotts Mills.
Maruon who lives at the Milk
Ranch said the 5 V4 -year-old an
imal was shot in early Sunday
morning darkness. He told Marion
County Sheriffs deputies it was
apparently the work of illegal deer
hunters.
Ohio River Crests; Cold
Adds to Flood Damage
MARIETTA, O. (JP) The swol
len Ohio River crested Tuesday
night at nearby Parkersburg, W.
Va., and rolled on to- the little
towns of Pomeroy and Middle
port, O, leaving 8,000 to 10,000
flood refugees and at least 10 dead
or missing.
" High winds, coupled with snow,
lowered projected crests at some
points as much as three feet but
brought telling blows to homes al
ready bit and turned roads into a
nightmare of ice.
Refugees returning to homes for
clean-up work faced gruelling
tasks after the freezing tempera
tures left frozen ice in pipes, walls
and basements.
The river crested at 43.9 feet at
Parkersburg, about eight feet over
flood stage.
Next stops for the crest of the
r--
Z2L
ATTORNEY GENERAL
McGRATH
Investigator Investigated
McCarthy Calls
Truman Aide
Ex-Communist
WASHINGTON (JP) - Sen. Mc
Carthy, R.-Wis., charged Tuesday
that the White House is harbor
ing a former Communist in the
person of Philleo Nash, a presi
dential advisor on problems of ra
cial and religious minorities. Nash
replied that the charge is "a con
temptible lie."
McCarthy said on the floor of
the Senate that he assumed that
his information about Nash had
never been brought to the atten
tion of President Truman.
"I would suggest to the Piesi
dent that he call upon Mr. Daw
son to bring the lile of Mr. Nash
into his office immediately, and
that he promptly read it and then
get rid of Mr. Philleo Nash."
Donald Dawson is Mr. Truman's
patronage chief.
McCarthy said that when the
Federal Loyalty Review Board
sought to inspect the findings of
the White House Loyalty Board,
which had cleared Nash, Dawson
sent for the pertinent files and
presumably still has them.
The Wisconsin senator based his
charges against Nash on 10 FBI
reports he said had been sent to
the White House Loyalty Board.
Nash responded hotly:
"The accusation that I am or
ever have been a member of tha
Communist Party or have had
anything to do with the Commun
ist movement is a contemptible
lie," he said in a statement.
Blood to Flow
As Reserve
Units Compete
The Salem Army Reserve Corps
says it can match local Air Force
Reservists pint for pint in blood,
that is.
Recently the Salem Air Reserve
Squadron issued a challenge to
other military reserve groups in
this area to compete with them
in a drive to obtain the most blood
when the Red Cross BloodmobUe
comes to Salem on Feb. 4.
"Are you going to allow the
challenge of the Air Force Reserve
to go unheeded?" asks a circular
sent out to all Army reservists
from Capt. Andrew J. Brown, unit
instructor at the ORC Armory,
where the BloodmobUe will visit.
The circulars include a pledge
card for Army reservists to fill out
and return to the Armory indicat
ing their willingness to donate
blood.
SALEM PRECIPITATION
Since Start of Weather Tear, Sept. 1
This Year Last Year Normal
28.89 36 84 22.27
three-day, three-state flood of the
Ohio and tribuary streams are the
neighboring villages of Pomeroy
and Middleport, some 35 miles
downstream from Parkersburg.
At least three feet of water
stood in the business district of
Pomeroy as the village awaited
an expected 51.7 feet crest by mid
night.
Middleport residents sat tight,
refusing to move after learning
the swollen stream probably would
by-pass most of the village. The
57 feet expected before the cold
wave would have flooded all the
business district.
At Gallipolis. some 18 miles
down-river and one of the highest
snots on the river-front, a crest ol
54 feet was expected Wednesday
noon and the town was isolated.
but not damaged.
V
jl o uover
I
Justice"
i
Bureau
I r-
By WTLMOT HERCHEK
WASHINGTON JP-The House)
Judiciary Committee voted Tues
day to investigate Attorney Gen
eral J. Howard McGrath, Presi
dent Truman's designated leader
in the drive against corruption in
government, ;
The new probe, it wis' learned,
will range over the whole admin
istration of the Justice -Department.
Committee sources said the
resolution for the inquiry was
carried with "no audible dissent.'.
They also disclosed- that the
committee refused to hear Mc
Grath before ordering the investi
gation. The cabinet officer travel
ed to Capitol Hill and waited in
vain outside the committee room
for a chance to make a statement
in the closed-door session.
Chairman Celler, (D.NY,) asked
for the privilege of allowing xfrm
attorney general to speak, it was
reported, but on motion of Rep.
Forrester, (D. Ga.) the- request,
was voted down almost unani
mously. i
McGrath announced! a short
time later that he will "gladly
cooperate" in the inquiry.
Refuses to Testify :
In the wake of tax scandals un
earthed in a separate House in
vastigation, there were these eth
er developments today:i
1. House tax investigators start
ed contempt of Congress proceed
ings against "mystery man' Hen
ry W. Gruenwald and ! his at
torney, William Power Maloney;
Maloney was escorted from the
hearing room by capitoj police af
ter shouting repeated t objections
to efforts to persuade Grunewald
to talk. Grunewald refused to
testify after his attorney had gorm
Gambler Indicted -.
2. McGrath announced that an
income tax indictment had been
obtained against Samuel R. Beard
of Washington, described by -federal
"officials as one of the largest
gambling operators on the Atlan
tic Seaboard. The indictment was
returned in Baltimore McGrath
said, and charged Beard with a
tax deficiency of more! than 11.
600,000. f
3. The Senate Rules Committee
voted unanimously for a four
months extension of the ; District
of Columbia crime investigation.'
granting $61,200 to carry on -4h
probe into the Washington police
department and its enforcement of
the gambling laws.
Delaney Sentenced :
A Tn Tll-tctrin rVontaf T.lsnM
former collector of internal re
venue there, was sentenced to two
years' imprisonment and fined
$10,500 for taking bribes and fal
sifying tax liens. Delaneys name
figured prominently in the House
tax probe. I
At its private meeting the Ju
diciary Committee decided to have
Cnairman Celler appoint, four
Democrats and three Republicans
to make a "non-political?' study of
McGrath's office and the admin
istration of the Justice i Depart
ment generally. - "
The committee has the 'authori
ty and the funds to proceed at
once.
Issues Statement I
Soon afterwards McGrath fa-
sued a statement saying "the ac
tion of the House Judiciary Com
mittee in voting to Investigate
'specine allegations and com
plaints concerning the ! Depart
ment of Justice that are based up
on 'credible' evidence; and net
mere suspicion and rumor is a
proper function of tht comsalt-
tee " j ;
He then added his pledge ef
cooperation. i s ;
Rep. Keating, (R. NY.) spon
sored the resolution to Investigate
McGrath and his department. Al-
the committee did not black its
passage, it was reported that they
succeeded in limiting its scope to
"specific allegations and com
plaints" based on "credible evi
dence." Friends of the administra
tion said they were determined
not to allow the inquiry to become)
a "fishing expedition. i ; .
Spell-Down!
The following wards aro
iTT"f those- w hie la may be ael
In the 195X Oregon Statesmaav
KSLM Spelling Contest semi
fmsJs an finals. Thejf art txtm
standard text books and . yore
smblished as a gsdde tax Intra
school contests bow mndtswar.
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