. 1
Spjp Probe NetsTwo
More U. S. Citizens
, WASHINGTON (P) Two men trained by the U. S. Army In
the art of interrogation were held in $50,000 bail each Friday on
charges of probing into American military secrets .-for the Russian
Embassy. .......
In Spy Plot
M.
YURI V. NOVIKOV
Co- Conspirators Caught
The Parthians, on the eastern
border of the old Roman Empire
gave the imperial armies a lot of
trouble. They wouldn't stand to
be overwhelmed by the legions.
Their armies would make raids
and when attacked beat a retreat
But in , turning to run they fired
a farewell arrow which has at
tained literary immortality as the
"Parthian shot
As the present administration
prepares to retreat to the pages
of history it has fired a few Par
thian shots. President Truman
told reporters that if he had
wanted to he could have clob
bered up things so it would have
taken Eisenhower months to
straighten them. out He said he
didn't do "that; but Republicans
are complaining that he threw a
bolo at Ike with his order trans
ferring to the navy the under
ground oil reserves of offshore
lands. He also added a big chunk
to the already huge Olympic Na
tional Park. And down Klamath
Falls way ranchers are convinced
that Oscar Chapman has clob
bered things up for them when he
limited homesteading of newly
reclaimed lands under the Klam
ath project to 6700 acres and
turned some 23,000 acres over to
the Fish and Wildlife service.
Down Klamath way land plus
water are of greater interest than
offshore oil.
The President has the authority
to establish oil reserves for the
navy just as President Coolidge
did with Elk Hills and Teapot
dome after the Fall scandals. The
Supreme Court has declared the
federal government's rights in the
lands of the continental shelf are
paramount Such has been the
pressure of the coastal states, and
others, that Congress.
(Continued on editorial page, 4)
Gost of Living
Shows Drop
WASHINGTON UP) The gov
ernment Friday reported a drop
of two-tenths of 1 per cent in the
cost of living during the month
ended in mid-December.
A 1 per cent decline in the re
tail price of food was chiefly re
sponsible, the Bureau of Labor
Statistics BLS) reported. Egg
prices dropped 10.7 per cent the
agency said, and meats, poultry
and fish also were lower, j
SARAJEVO BLAST SCENE
Burnt ATtV. Viir-cl9iHa (Jt
, ...... WIUU V w lifl
The Yugoslav information director
said Friday an explosion at a mili
tary base near Sarajevo killecf 21
persons and . injured at least 50
others. '
j Animal Crackers
J By WARREN GOODRICH
'CAH I HAYS THB.BU66Y
ill r1 i-" 1 7
I I
U. S. agents in Vienna, where
the two former Army intelligence
men were seized on espionage
charges, pressed . their roundup
with the arrest of at least two
more American citizens for ques
tioning. -
American' Embassy officials in
Vienna have predicted a substan
tial number of other arrests will
be made in the spy plot investi
gation the first ever to be
linked directly with the Soviet Em
bassy in Washington.
Novikov Expelled' '
Yuri V. Novikov, second secre
tary at the Russian Embassy and
alleged director of the spy ring,
has been ordered expelled from
this country but there, was no in
dication Friday as to how soon
he will leave.
Diplomatic officials said it is
customary to allow a "reasonable
time for an ousted Embassy aide
to get his personal affairs in order
before leaving, but they predicted
the State Department will start
prodding the - Soviets if Novikov
is not on his way home within
a few days.
Said Co-eonspirator
Novikov, a 30-year-old career
diplomat who served with the Red
Army during World War II. was
described by Special Assistant At
torney General Oran H. Water
nan as a "co-conspirator" with
the two ex-G. I.'s who were
whisked back to Washington early
Friday from Vienna.
The two. Otto Verber. 31. and
Kurt Ponger. 39, who served with
U. S. Army intelligence during the
last war and won American citi
zenship on the basis of their Army
records, appeared briefly before
Federal Judge Alexander Holtzoff.
Indictment Delayed
Their formal arraignment on an
indictment accusing them of de
livering U. S. military informa
tion to Russian agents was de
ferred until Monday to give them
an opportunity to engage lawyers
Waterman asked for high bail
"in view of the seriousness of this
case and in the light of the gov
ernment s experience in Commu
nist cases."
For one thing he probably was
thinking of Gerhart Eisler. the for
mer Communist leader who jumped
$23,500 bail in 1949 and fled the
country to avoid going to jail on
passport fraud and contempt
charges.
VIENNA, Austria (JP) A Ger
man-born veteran of the U. S.
Army's Intelligence service is
among several persons held for
questioning about the operations of
a Russian spV ring. U. S. officials
said Friday night. He Is Ernest Tis-
lowitz, , 40.
Naguib's Grip
Tightened by
Political Cut
CAIRO OB Egypt's strong man
Premier Mohammmed Naguib Fri
day night dissolved all Egyptian
political partfes and ordered that
no party be allowed any activity
for the next three years.
General Naguib also announced
that 25 "suspect" Army officers
have been arrested and are being
investigated.
Naguib announced his govern
ment had ordered that all political
parties' assets be confiscated and
"used for the benefit of the coun
ry.'" Naguib said the three year sus
pension of the parties was a "tran
sitional period." He seized power
last July 26 after forcing King Fa
rouk to abdicate and go into exile.
Slide Crushes
Newport Home
NEWPORT, Ore. 11 A dirt
slide first crushed, and then car
ried off the home of Glen R. Eden
field, a mill worker, four miles
east of Newport Friday.
Edenfield drove into his yard
just as the first dirt started down
from the steep slope behind his
house. He ran inside, and got bis
wife and two young children out.
The slide, crushed the back wall
of the house, and caved the sides
in. As the slide grew, the whole
in. As the slide grew, the whole
section on which the house stood
moved several hundred feet down
hill, stopping about 50 feet short
of Highway 20.
SALEM PRECIPITATION
Since Start el Weather Tear Sept. t
This Year 'Last Year Normal
18.54 (27X3 20.34
Oregon Nickel
WASHINGTON 1 The gov
ernment announced Friday that
two subsidiaries of the MT A.
Hanna Co., Cleveland, O.. have
agreed to undertake production of
between 95 million ' and 125 mil
lion pounds of nickel from a de
posit in Oregon. - '
Jess Larson, defense materials
procurement administrator, said
the agreement means the nation's
supply of the critical metal will
be boosted substantially durin4flhe
next several yearsv - -
Hanna Coal and Ore Corp. and
the Hanna - Nickel , Smelting . Co.
will undertake' development of the
big deposit ia Douglas County in
Southwestern : Oregon known f as
Nickel Mountain; Larson said. He
said this was the : only major
known deposit of the metal in this
country, -"-v- .: :
Secretary of the Treasury-desig
Under
Government
nate George M. Humphrey was
12
State-operated nursing homes
were proposed by a state physi
cian Friday as a means of reduc
ing public welfare costs.
Dr. Clinton Ma Kill, part-time
doctor for Oregon Public Welfare
Commission, said nursing home
costs are about one-third the
amount of hospital costs and wel
fare cases fill about 1,800 nursing
home beds per month but about
9,000 hospital beds in Oregon.
His remarks were addressed to
Sen. Rex Ellis' welfare subcom
mittee of the Oregon Legislature's
joint ways and means committee
during a study of the proposed
$67,000,000 welfare budget for the
coming biennium.
Principal Activity
The meeting was principal leg
islative activity of the day as most
of the House and Senate members
went home after adjournment
Thursday. The session reconvenes
Monday.
Dr. Magilfand Miss Loa How
ard, administrator of the state
welfare commission, were ques
tioned by subcommittee members,
particularly about rising costs con
tributing to the proposed budget
of $6 million more than the cur
rent budget.
Dr. Ma gill said there apparently
is little chance of reducing medical
aid costs estimated in the commis
sion budget unless state stand
ards are reduced materially. He
said doctors already are charging
welfare patients far less than the
actual cost of their services.
Hope for Saving
Magill said the outstanding hope
for a substantial saving was in the
field of nursing homes. He suggest
ed the -establishment of at least
three state operated nursing homes,
adjacent, if possible, to medical
centers.
He said welfare patients are now
being cared for in hospitals when
they could be cared for more ec
onomically in nursing homes, if
such faculties were available. Ma
gill said there is a present short
age of nursing homes in the state
with the exception of in Multnomah
and Marion counties.
Contract arrangements between
the state welfare commission and
private operators of nursing homes
was proposed by Rep. Save Baum
of LaGrande. Under this plan,
Baum said, the commission would
guarantee a minimum number of
patients per month and thereby en
courage more persons to engage In
the nursing home business.
Miss Howard said such a plan
would require careful study and
Sen. Dean Walker, chairman of
the senate ways and means com
mittee, expressed concern that
such a program would commit
the state to a dangerous precedent.
Doubted Redaction
There was some discussion of
the controversial issue of making
welfare rolls accessible to the pub
lic. Miss Howard said she doubted
whether such a proposal, if appro
ved, would reduce the welfare
costs by 10 per cent as estimated
by some members of the joint
ways and means committee.
It was emphasized by Miss How
ard that the commission investi
gates every assistance case under
its jurisdiction and that few, if any
persons, are receiving funds .from
the commission to which they
are not entitled.
Sen. Rex Ellis announced that
all county welfare commissions
would be called to Salem to justify
increases in their budgets for the
next biennium.
(Legislative news also on page 2)
Tidelands Shift
Made Official
WASHINGTON (fl I President
Truman brushed aside hot con
gressional protests Friday and
placed the vast offshore oil de
posits under the command of the
Navy.
The President issued an execu
Hvo nrdor srttinff aside the much-
disputed underseas resources, val-J
uea at pernaps u ouiion aouars,
as Navy oil reserve.
sits Slated
Plan to
chairman of the M. ; A. Hanna
Company until his resignation in
December. When Humphrey was
selected for the treasury job he
said 'he would sever all his busi
ness connections. -
The new agreement, Larson said,
has been under negotiation for 10
months,, beginning long before
Humphrey was considered for the
treasury , post. : Larson : told news
men that so . far . as : he - knows
Humphrey never had a direct hand
in the negotiations, adding "there
is nothing political in it. It is a
business deal to get the country
needed materials." -
Larson said the Defense Mater
ials Procurement Agency (DMPA),
agreed with the Hanna Coal and
Ore Corp. 'that the company will
develop the mine at its . own - ex
pense at an estimated ' cost1 of
about 14,300,000. The company will
sell th aovernmant sufficient ore
102nd YEAB
Nursing
Homes
Proposed
Depo
PAGES
Thm Oregon
Historical Statues Placed
" ,-Cv 4, "V-Jt V
: v.- .;
n
Statae of Oreson pioneer Jason Lee la hoisted onto pedestal east of
the Capitol here Friday. At work are (from left) H. S. Gray and
Bert Frazer, Portland, and Richard NordaLi Salem. Nearby on
Statehoose grounds is now statae of John McLouihlin. Both are
10-ton bronze replicas of statues placed in Hall of Fame at Wash
ington, D. C.
Iran Oil Settlement Seen
Possible; British Hopeful
LONDON (P) Henry Byroade, U. S. assistant secretary of state,
took a plane for Washington Friday night with what may be a suc
cessful plan to end the explosive 22 -month-old oil dispute between
Britain and Iran.
British officials apparently be
lieved a settlement is within reach
at last but they had their fingers
crossed.
Premier Mohammed Mossadegh
may tell U. S. Ambassador Loy
Henderson in Tehran Saturday
whether he accepts the main points
of the plan, hammered out by Hen
derson and Byroade.
Henderson submitted a detailed
draft of the plan to Mossadegh at
a marathon seven-hour session in
Tehran Thursday. Informed sources
said the premier raised some ob
jections and proposed some chang
es. These were considered Friday
night at a meeting between By
roade and British officials. The
British were reported to have gone
some way in meeting the Mossa
degh objections, and the British
reaction was messaged to Hender
son immediately.
And Death too, Sir?
WASHINGTON Cfl -- Secretary
of the Treasury Snyder said his
goodbyes to treasury correspond
ents Friday.
"What do you think! about taxes,
Mr. Secretary?" one of them
asked.
"They will continue, said Sny
der. GENERAL'S WIFE IN HAWAII
HONOLULU m i Mrs., James
A. van Fleet, wife of the U. S.
Eighth Army commander in Korea,
arrived Thursday night after a two
month visit in Korea with her hus
band. She will visit in Hawaii for
several weeks. , 1
for Production
to produce, a minimum of 95 mil
lion pounds of nickel contained in
ferronickel.' j '
Tru screed nrice will be So ner
dry ton for ore;with,a nickel con
tent of 1.5 per cent,? wnicn is me
a vera rm ffrade as indicated by test
drnXuhg. Lower grades would bring
less, better graoea more. .
DMPA under its agreement with
TTarma Nickel" Smeltinff will ad
vance - up to $24,800,000 for con
struction of a smelter ana reiaiea
expenses. This company will con
vert the ore to ferronickel ingots
for the government ! at a cost not
to exceed 78.39 cents per pouna
tnr- tho. first frvm million rjounds of
nickel produced and 60.5 cents per
pound thereafter, e x e i u a i y e ox
amortization of the facilities.
The company .will pay the. gov
ernment - the same i price for the
ore that the government - pays
Hanna Coal and Ore. -
Subsidize Industry
FOUNDED 1651. ... K.
J ! I. i if-'-
Statesman, Satan, Oregon. Saturday. January 17. 1953
t dft ' .t
":' t Li :'-
i
Dayton Angler
Lost in River
NEWBERG, Ore. UFi Gordon
James Anderson, 31, Dayton,
grabbed frantically at brush along
the Nestucca River north of Hebo
Thursday, but the brush broke off
and he was swept away in the
river to his death.
He had been thrown Into the
river, along with Pete Slipper of
Lafayette, when their boat cap
sized in the rain-swollen stream.
The two had started out to fish.
Both dung to the overturned
boat at first. Then Slipper grabbed
successfully at brush on the bank.
Norman Riley, Newberg, who had
been fishing from the bank, ran
over and pulled Slipper to safety.
The branches Anderson grabbed
broke off before Riley could get
to him.
Gty Policeman
Hurt in Crash
OREGON CITY Richard Boeh
ringer, Salem city patrolman-, was
injured critically late Friday night
when the auto he was driving and
another collided headon south Of
Oregon City.
Boehringer was taken to Hutch
inson Hospital with head injuries,
injuries to his left hip and pos
sible broken ;ribs.
Driver of the other car was
listed by state police as Roger Sail.
Butte, Mont. Extent of his injuries
were not known. State police files
indicate Sail traveling : south on
99E,- apparently tried to pass f a
truck t when Boehringer, going
north, and he collided. j ;
f (The following words are among
those from which will be chosen
the wards for the .1953 Oregoa
Statesman-KSLM - Spelling; - Con
test for 7th and 8th graders of
Marion, Polk and part of . Yamhill
County: -.LM': 1 ' ' r
X chemistry
t beggar
i activity
avenue
; autumn
synonym
v evasive'':.--'.)
-embrace i
r decline j
da ten ! !
correction" ;
insurance t'
criminal i
-exquisite -
pyramid
primary . ?
poison t ' '.'
theory , 1
surround
Daily Speller!
Law M
i -' :
'. From Top Defense Job
Senate
Two Buildings
Destroyed in
Pedee Flames
Statesman News Servlea
PEDEE A spectacular blaze
licked at the heart of this Polk
County town early Friday, destroy
ing two buildings and momentar
ily threatening to sweep the bus
iness district.
Firemen from four neighboring
towns answered the alarm.
Townspeople first discovered
the blaze in the large Pedee Dance
Hall Cafe building at 4 a.m. The
flames had a good start then, they
said. As the old-type, two-story
structure flared up, the Pedee Tav
ern located just north, also caught
fire.
In 30 minutes both buildings
were a mass of flames. Fire dep
artments from Dallas and Mon
mouth, each 15 miles away, re
sponded. Falls City and Philo
math also sent firemen.
Cause of the blaze and loss es
timates were not determined im
mediately. The larger structure contained
a restaurant and living quarters
on the lower floor. The upper story
was a dance hall. The living quar
ters were unoccupied.
Former owner Wallace Shan
non sold the building several
months ago .to John Collins who
lives at Salem and was there at
the time of the blaze.
The tavern was owned by Mrs.
Helen Gage Bennett. It was leas
ed to S. P. Bingler who lost his
entire stock of merchandise.
The Fyitz Dyer garage, across
the street frOm the fire, was badly
scorched by the flames which also
blistered paint and' broke windows
in the Fred Brassfield store.
" Prompt arrival of fire depart
ments was credited "With saving
the other store buildings here.
They were summoned by Helen
Johnson, proprietor of the Brass
field store.
TRIBUTE TO BARKLEY
WASHINGTON WV The Senate
paid tribute Friday to retiring Vice
President Barkley for his "cour
teous, dignified and impartial"
work as its presiding officer.
Litter of Pups
' r
X f
Two days eld and a bare handful are Che three toy Manchester dogs
" displayed by Mrs. Earl Adams, 4225 Claxter Ed., and toe mother.
Dusky Penny GirL Pups weighed a total of 5 ounces at birthr the
Utter Is more numerous than usual for the breed. Manchester are
bred by Mrs. Adams and her husband, who la Salem constable.
11
! -
PRICE Sc
Delays
Hotel Can Rave;
Sheets to Wave
LOS ANGELES (fl Mrs. Sam
uel Genis was upheld Friday in
her right to hang bedsheets out
the window of her suite in the
fashionable Beverly Hills Hotel.
The hotel attempted to eject
Mrs. Genis and her husband be
cause of the bedsheet episode.
However Superior Judge. Harry
J. Borde denied the -hotel's evic
tion suit, awarded the couple and
their attorneys a $7,000 judgment
and directed that -Mr. and Mrs.
Genis be allowed to retain their
suite for two more "years, until
their lease expires.
Police Fear
Foul Play to
Mt. Angel Man
MT. ANGEL Police were
hunting early today for some
clue to the wherabouts of Will
lam F. Dwyer, 70, retired rail
road workerwho It was feared
had become the victim of foal
Play.
Merle Grace, Mt. Ansel police
chief, reported . he checked
Dwyer's home in the 200 block
of Elm Street here late Friday
when the old man had not been
seen for several days. He said
he discovered evidences of an
altercation and what was Iden
tified as blood stains on bed
clothes and floor of the bed
room. Marlon County Sheriff Den
ver Young, Deputy Larry
Wright, Sgt. Roy Hpnt and Pa
trolmen Robert. W. Dunn, Ver
11 n Combs and Floyd Morrill,
all of state police, were Inves
tigating the scene, early this
morning.
JURY STILL OUT
NEW YOR Kl The Jury de
liberating the case of 13 second
string Communist leaders failed
again Friday to reach a verdict.
It will resume its study of the case
Saturday.
Bare Handful
i
.
'i
.A
v 7 -
7
!
- i . ' ; I
i
Weather
Max. Mia. Pwlp.
S3 44 M
S3 4S M
55 i 41 .00
69 35 traco
'Satota
Portland
San FrancUco .
Kw York
FORECAST (from V. 8. Weather Bu
reau. McNary Field, Salem): MotUy
cloudy with Intermittent rain today,
tonlf ht and Sunday. Continued mild
with high today near 52: low tonight
near 42. Temperature at 1241 ajn,
60 degree.
No. 318
o
9
SlOB
CMHoldings
Cause Balk -
In Goniniittee
WASHINGTON Ut The Senate
Armed Services Committee balked
Friday at giving immediate appro
val to Charles E. Wilson as secre
tary of defense in the Eisenhower
administration.
Chairman Saltbnstall (R-Mass)
said the committee had decided it
coma not act on tne iDinei ap
pointment until it had clarification
of laws limiting the private busi
ness holdings of government offi
cials. Wilson has just retired as presi
dent of General Motors, but he
still holds about 2 Vt million dollars
worth of stock in the giant auto
mobile corporation. General Motors
is one of the country's biggest de
fense contractors.
Gore In Opposition
Sen. Gore (D-Teno) announced a
short time later that he will vote
against confirming Wilson as de
fense chief unless he divests him
self of his General Motors holdings.
Gore, a freshman senator, said
a vote tor wuson s comirmauon .
would be tantamount. to sanction
ing the violation of the law of the
land." .
A senator whose name cannot be
used said Defense Secretary Lovett
told the committee this week Geix
eral Motors had asked for an in
crease in its profits on government
contracts and that he was leaving
the decision to his successor.
Holds Up Confirmation
The committee's decision will de
lay action on Wilson's nomination '
at least until Monday, senators
said. It will also hold up a vote on
President - elect Eisenhower's
choices for four other key posts in
the defense establishment.
"We are In a pickle," Sen. Hunt
(D-Wyo) confessed.: On Thursday
members of the committee were
predicting the Defense Department
nominations would have smooth
sailing.
Sen. Taft of Ohio, the Senate
majority leader, said Congress
may have to think about changing
of Eisenhower's Cabinet choices.
Wilson told the committee Thurs- -
day that he not -only retains a
large chunk of General Motors
stock but has been promised bon
uses of more than $600,000 over
the. next four years from General
Motors profits.
Problem for Advisors
Saltonstall said he would prob
ably take the problem to Eisenhow
er's top advisors. Including Herbert
Brownell, attorney general-designate,
and former Gov. Sherman
Adams of New Hampshire, assist
ant to the Presidentelect.
"My opinion is that the law is
clear as mud," Hunt said.-'Personally
I would favor repealing any
laws that might prevent the gov
ernment from obtaining services of
business men of integrity."
Tart saw ne knew notning about
the details of the Wilson situation,
but that he felt the legal question
might have to be examined close
ly.
Durkln Approved
The majority leader said he
didn't know whether the hitch
would delay Wilson's appointment
Taft has been working to get ail
of Eisenhower's nine Cabinet
choices ' confirmed by the Senate
next Tuesday. This would permit
the new President to have them
sworn in the same day he takes
office.
Martin P. Durkln of Illinois, a
Democrat, was approved as secre
tary of labor by the Senate Labor
Committee Friday.
Taft was among those voting for
Durkin although Taft called Dur
kln' s nomination "incredible" when
it was made by Eisenhower origin
allly Taft's vole made the commit
tee action unanimous. He had prev
iously said he would not fight the
nominauon.
Rain Remains
On Forecast
Rain, and more rain, was fore
cast for Salem as precipitation
totals passed up normal for Janu
ary with still half a month to go.
McNary Field weatherman re
corded .89 of an inch Friday to
bring the month total to 7.15, well
above the 5.72 normal for January.
Despite the indicator, the Weath
er Bureau gave out this 30-day
prediction Friday: Above normal
temperatures for the Far Westj
and subnormal amounts of preci
pitation. ' . -
Motorists were advised to carry
chains for mountain driving today
and tomorrow as snow piled up
In the Timberllne, Chemult, Aus
tin and Seneca areas. Fifty-six in
ches of roadside snow was report
ed at Santiam Pass with six inches
of new snow. - '
Deci