i I - - ; ' . " t - '..-.-:!;.' r ' ' : , Sec, mm Favors Private Power : TT Tlx 7T 77 777177 - 'P . 777 77 77 7T7T 7777 9 7? L TTN MCAay jj mum rmm jot jreuerm iniew s amyom .M CRT i Secretary of the Interior Mc Kay has announced the Depart ment of the Interior will not oppose the application of Idaho Power Co. for a license to de- relop power on the Snake River. This means that the Bureau of ! Reclamation' under his jurisdic tion no longer will press for con struction . of Hells Canyon Dam In the same vicinity. Interior will furnish engineering and other ! data to the Federal Power Com mission, but make no interven tion in the way of a recommen- i nation for or against the private ! project. I am not at all surprised at the decision of the Secretary. The climate of the present adminis tration is adverse to federal pow er development The drive for economy imperils appropriations (or projects already authorized by Congress, and Hell's Canyon was never authorized. As Gover nor of Oregon, McKay never com mitted himself on Hell's Canyon but his sympathies seemed to in cline toward private enterprise. In bis statement to the press Tuesday, McKay evades the real issue. He does not come out ei ther for or against the federal project, or for or against the Erivate project. He does say that e believes the federal project is generally feasible from an en gineering standpoint; but then, since there is a shortage of pow er in the Northwest now, and since there is little likelihood of obtaining the large appropria tions needed for Hell's Canyon "We must therefore give serious consideration" to the Idaho Pow er proposal Certainly we should; but the FPC and Congress also should give serious consideration to al ternatives. The principal ques tion, in my opinion, (Continued on editorial page, 4) Draftees Leave For Induction After Party Twenty-six Marion County draf tees were guests at a party held for them in the YMCA Tuesday afternoon just before they left by bus for. Portland. and induction into the military service. Host at the party for the young men was the Salvation Army and women of the Salvation Army served refreshments. Maj." Char les Bennett addressed the group as did Robert Y. Thornton, state attorney general. This Monday hosts for the de parting draftees in the second group for today will be the wom en of the Nazarene Church. Slat ed to leave in the Monday draft are nine men from Salem. They are Ted F. Reinwald, John P. Pickerell, Harvey J. Gjesdal, Ar dean H. Heinrichs, David W. Bo je, Clifford W. Frieson, Thomas J. Sakhenberg. Donald H. Graves and Carl F. Judd. Also included in the group are Kenneth E. Allen, Robert P. Bor ehers and Herbert L. Littau, all of Aumsville; LeRoy H. Fery and Franklin Hunter, both of Stayton; Clemens F. Schaff ner and Robert P. Kloft, both of Mt Angel; John W. Gander, Silverton; Raymond C. Helmig, Gervais; Merle E. Kirk, St Paul; Sherwood S. Thompson, Woodburn, and Rob erto Martinez, Independence. Halsey Grain Elevator Burns HALSEY, Ore. If) An early morning fire destroyed the Cross Brothers seed and grain elevator here Tuesday. The loss was esti tmvea at more than $200,000. Firemen from Halsey, . Albany, Harrisburg. Brownsville and Shedd came to the scene in the attempt to save the building. Elden. ; Jess and George Cross, the owners, said the building was Insured fully. They said it was bout 75 per cent filled with seed and grain. The cause of the fire was not det rmined at once. Animal Crackers By WARREN COOORICH PlD I EVE TELL you WHAT A gTWggFUL WPQPPECKgR MY - MS ? Ml h- ;''!-! By W. JOYNES MACFARLAN WASHINGTON (A Interior Secretary Douglas McKay gave the nod to private enterprise over public power Tuesday as he vir tually junked plans of the old Tru man administration to build a mammoth 560-miIlion-dollar feder al dam at Hell's Cannon along the Oregon-Idaho border. Reversing the Truman adminis tration's stand, McKay told a news conference bis department is with drawing its opposition to a plan by the private owned Idaho Power Company to build a series of three hydro-electric power dams in the Snake River area. McKay said the decision was "part of the policy of this admin istration." He emphasized that it was prompted in part by the Ei senhower administration's desire to cu. federal expenditures in its drive to balance the budget and reduce taxes. Morse Approves On Capitol Hill, Sen. Wayne Morse (Ind Ore.) promptly de nounced McKay's action "a shock ing betrayal of the public inter est." The Oregon senator, a leading advocate of government construc tion of the Hell's Canyon project, declared: "It is further proof of what I warned during the campaign that the Eisenhower administra tion would be a tool of American monopolies. Never was it more appropriate to say that in the next election the people should 'turn the rascals out.' " Cordon Counter However, Morse's Oregon col league. Sen. Cordon (R), said he could not see how McKay's action had changed the situation except that the interior department will noL be a "special pleader." "The Federal Power Commis sion still has the obligation to make a full and impartial invest igation of all sides of the issues," Cordon said. The application by the private . company to build the first of three dams is before the power commission. Ready U Proceed In announcing his decision, Mc Kay said the Idaho company is ready to go ahead with privately financed constructioL, known as the Oxbow Project while the gov ernment has no assurance that Congress would authorize money for the federal project The cabinet official said he doubted if appropriations for the government dam "could be justi fied now" even if Congress would approve it and he declared: "The Department of Interior would be playing the reprehensible part of a dog in the manger if it insisted on opposing a badly needed development that private capital is ready and willing to undertake, if the plan proposed by the Idaho Power Company is rea sonably comparable as to results, while the department itself has no assurance that it can carry out its plan without extended delay." Each -Case on Merits McKay said Tuesday's decision does not mean the federal govern ment is getting out of the business of generating power for reclama tion. He said each case would be judged on its merits. PORTLAND m The master of the Oregon Grange said Tuesday he was "shocked" over Secretary of the Interior McKay's decision on the Snake River. SEATTLE UP) Oregon's Demo cratic National Committeeman, Monroe Sweetland. said Tuesday that the decision by Secretary of the Interior McKay to drop plans for construction of a dam at Hells Canyon on the Snake River "is a frightening blow to the economy of our Northwest" 'Blossom Day' Theme of Salem's Rose Parade Float .The Salem Cherrians got one step closer to the Portland Rose Festival Tuesday and the Salem float: which will be in the parade. Cherrian representatives signed papers in Portland and made ar rangements for building their entry. King Bing Hunt Clark, Vernon McMullen and Ed Randle met with: Rosarians and later with Tommy Luke, Portland florist to discuss plans for construction of the ! float The Rose Festival theme, "Holiday and Flowers," is to be intertwined with Salem's "Blossom Day" theme A scale sketch of the float is to be given the Cherrians soon. Tentatively plans for the 24- foot float include a white and red combination in the same shades as the Cherrians uniforms. The Cherrian marching unit is to ac company the float in the Portland parade June 12. -Money to finance the Salem entry is being raised by the Cherrians and William Healey is chairman of finance. Max. S7 , Mia. Precis. Salem ,. Portland SI 88 S3 St 45 M JOO OS Saa Francisco 7S Chicago - i 54 Mw York TO SS f Willamette Biter a feet roRECAST (from V. S. weather bureau. McNary field. Salem): Mostly cloudy with scattered showers today, tonight and Thursday. A UtU cooler today with the niftiest near 15 and the low tonisht near SO. Temperature at ISrOl a.m. waa 57 degrees. --. - ' I SALEM PRECIPITATION Stoee start ef Weather Tsar, Sept. 1 TisYear.- .-Last Year , Wormal StM nn 1C3 YEAH 2 Time for Hobbies Now iHji.m . ii :::-v jfmmmmmmmmmmmm ' 2 1 ' f t Now that he's doubly retired, Hollis W. Libby (above) has time for two hobbies, photography and raising newer sucn as these azaleas. He was the first person on state retirement to get a Social Security check also under a new program. (Statesman Photo.) Retired State Employes Start Getting Social First payment of Social Security benefits to a retired state em nlove under the nroeram authorised by the 1953 Legislature was made in Salem this week. The recipient was Hollis W. Libby, 865 Boxwood Lane, who retired nominally a year ago but has hardly had a chance to find out what, leisure is. libby was given the maximum Salem manager for Social Se curity Administration, who said it was the first such payment in Oregon. He reminded also that only 58 persons of more than 200 elicible in Marion County have filed the necessary claims for fed eral benefits. Most Former State Employes The claimants are primarily former state employes: with some county workexs,ad. some . school L teachers. Sollwell expects more than 600 claims this y eartttm Marion and the other five conn ties in his district Payments can be made retroactive for only six months. j Libby left his 18-year position as chief locating engineer for the State Highway Department on April 1, 1952. But the department needed him, so he worked until July, then took the status which allows retired persons to work 600 hours a year for the state. He did that in 1953, too, and worked through January and February. Joined Payroll Again Then in March he and hun dreds of others retired in the last 15 months went back to work for a few tiays in order to be on the payroll when the switch to Social Security became effective. Stillwell noted that in most in stances, departments did not have to "make work" to keep these people busy but had plenty for them to do and some are still on the job. Libby, who is 73, could have retired in 1946, shortly after the state retirement system went into effect Worked With Highway Dept Before becoming chief locator, libby was with the Highway De partment since 1919. Now the native of Maine is re laxing at his three-quarter-acre home south of Salem. He stressed that he isnt trying to farm it Salem MilEt. Hearing Scene of Vocal '(Portland Formula' vs 'Butterfat By LTLLIE L. MAD SEN Farm Editor, The Statesman Selling milk is a lot more than putting it in a bottle and setting it on someone's doorstep. This was brought out at the milk hear ing held in the conference room of the Oregon State library build ing Tuesday. . The hearing opened at 9:30 a. m. Lunch was completely, for gotten, and the arguments for and against butterfat being the ruling factor in price-setting went straight through to after 2 p. m. Then the hearing here was closed to be opened again an hour later at Albany. But before the Salem group disbanded, arguments j be came heated and various were the "acrid statements shouted forth and back under oath i ad ministered by W. S. WeideL new milk administrator in charge of the hearing. He was assisted by A. T. Nordquist field supervisor for the state milk administration. Curley's Dairy requested i the hiring to consider producer and retailer prices and set quotas on the 100-weight instead of the but terfat basis now in force at' Sa lem. I r Ivan W. Osterman, represent ing Curry's, wanted a set-up simi lar to Portland's new orice order, although he requested a Vi cent Hp-charge la the -Salem market SECTIONS 20 PAGES Security Checks $85 check by Richard StillwelL 300 Register At Baptists' Convention Jaore than 300 persons had registered Tuesday as the annual session of the Oregon Baptist Convention opened in Calvary Baptist Church. Another 200 are expected dur ing the next two days. Business meetings will begin at 9:10 this morning and be climaxed in elections and consideration of resolutions at the same time Thursday. Top events on today's sched ule are two banquets at 6:15 p.m. and the 7:45 evening serv ice in the church, at which the Rev. Omar Barth, state vice pres ident and host pastor, will pre side. The banquets will be at Calvary Church for the delegates as a whole, with the Rev. Dean Kirk wood, new West Coast secretary of American Baptist Foreign Mis sion Society, as speaker, and at First Methodist Church for Bap tist Youth Fellowship, with Miss Helen Schmitz, secretary of pub lic relations in the Woman's American Baptist Home Mission Society, as speaker. The evening service will hear the Rev. Tracy Gipson, graduate of Linfield College and now a missionary in South India. Mu sic will be provided by the Lin field choir. The state BYF cab inet will conduct the worship service. Another feature will be recognition of new churches of the denomination. over Portland's. Portland's -new 'order, which went into effect May 1, de-emphasized the butterfat by changing Portland producer quotas to a straight hundredweight basis. Quotas determine the amount of milk a producer must deliver to a market to share in the state fixed price pool. Since the in ception of milk control, the quo tas have been .set on a basis of pounds of butterfat a-day. The new order provides the quota on the total weight of milk, regardless of butterfat test In the Portland area, the milk was reduced to producer - from $8.59 a hundred on 4 per cent milk to $8.20. Tuesday, represented a variety of opinions: The 59 milk pro ducers, distributors and. listeners present: Those favoring the Port land order; those who believed in a "substantial deferential for the higher butterfat content"; those who wished to maintain, the butterfat quota-setting instead of the hundredweight and those who took no side. The latter were in the majority. , - John Gale, chairman of the Oregon Jersey; Cattle Club milk committee, was the first to take the stand. He claimed that the Portland -- -H was penalizing owners of high butterXat produc ' P6UNDSD 1651 Ike Files Foreign Aid Plea By ROGER D. GREENE WASHINGTON un President Eisenhower Tuesday asked Con gress for $5,828,000,000 in new for eign aid a program which he called a bulwark for America's own defense against "the threat of Soviet aggression." Eisenhower coupled his request with a sharp warning to the Krem lin that the United States plans a substantial step-up in military aid to Communist threatened southeast Asia, notably in em battled French Indochina. He prodded Russia anew to prove the good faith of its recent peace overtures "by deeds" in stead of the words that have been Cowing out of Moscow during the last two months in the post-Stalin era under Premier George Mal enkov. In a special message to Con gress, the President declared: "The basic purpose of this pro gram is simply the long-term se in the shadow of the Soviet threat "The blunt, sober truth is that we cannot afford to relax1 our de fenses until we have seen clear, unmistakable evidence of gen uinely peaceful purpose on the part df the Soviet Union. "Until Soviet good faith is prcven by deeds, the free nations must rely on their own strength for the preservation of peace." The President noted that his re quest is $1,772,000,000 less than former President Truman asked in his farewell budget for the 1934 fiscal year beginning July 1. Nevertheless, several congres sional leaders made it clear that the figure' was higher than they are willing to go. The total military outlay was set at $5,250,000,000, plus $550, 000,000 for "technical, economic and developmental purposes." Forest Fire Degree Issued Acting Gov. Eugene E. Marsh Tuesday closed Oregon's 27,000,000 acres of forest lands to unregulated burning and use of fire. Recent high temperatures and low humidity prevailing through out the state caused the fire sea son to be moved up from the re gular date of May 15 to May 5. The closure was recommended by State Forester George Spaur following a conference with logg ers, timber owners and others. The closed season became effective at midnight Tuesday. Humidity and burning permit regulations will become effective with the closed season proclama tion as precaution against the start of forest fires, officials . said. All logging operations in Western Ore gon will become subject to the pro tective regulations and minimum 30 per cent humidity shut-down re quirements. Barclay Appointed Qty Parks Administrator Charles Barclay, manager of the Salem airport and city purch asing agent, has been appointed city parks administrator, it be came known Tuesday. James Moyer is retained as parks fore- tion cattle. They, he said, were the ones who bore the higher cost of producing a higher butterfat product at a lower price. He urged that Oregon State College's cost 'study be used to establish the base price for producer milk. The new order, in Gale's opinion, would "discourage production of high solid content milk." Charles Eckelman of Fairview Farms, Portland, spoke in favor of the Portland formula, admit ting, however, that Jersey and Guernsey owners would be "the hardest hit" by the change but that in the long run they would profit by it as demand would in crease." While Eckelman did not favor the lower prices now received, he said, he believed that the sur plus' butterfat should be sold, if necessary even at a .lower price. He asked that dairymen work to gether "for a solution beneficial to alT. "He backed his argument for -a price, based, on fluid milk rather than butterfat by pointing out the government's surplus of about 150.0004)00 pounds of but ter, bought to support the price. : .When Harry Lane, Sherwood, took the stand, he remarked that farmers "cant afford to price themselves out of milk". He stated tfce m'lk producer rv ceived less las the surplus pool WcdBMdor. May L Senate Passes Offshore Oil Bill 56 to 35 WASHINGTON UR The Senate ended its , longest debate in 15 years Tuesday by passing the Eisenhower-backed bill to establish state ownership of the oil riches lying under coastal waters. The roll call vote was 96 to 35. The bill now goes to the House, which passed its own version of the legislation five weeks ago. A conference committee may have to be appointed later to iron out dif ferences in the measures. The party lineup on the final vote was 35. Republicans and 21 Democrats for the bill and 25 Democrats and nine Republicans against it Control of the submerged lands was a hot issue in last year's presidential campaign. Eisenhower came out for state rights, and he stood behind the state ownership bOl when it was sponsored in the Senate by 40 senators. Hotel, Motel Group to Seek Tourist Trade A meeting of Salem hotel and motel proprietors and managers Tuesday night in the Senator Ho tel resulted in formation of an I association of the two groups tourist tradnd,ionventions in uus city. To facilitate legislation within the group of about 12, Del Milne, manager of the Marion Hotel, was elected temporary chairman. He in turn appointed a board of di rectors, representing both, hotels and motels, .consisting of Russ Bonesteele, William Chadwick, C. H. Robbins and C. V. Baker to meet soon to familiarize other lodging owners of their plans. The city's firrt get-together of this group was negotiated by the Salem Chamber of Commerce to further its tourist and conven tion program this year. Until Milne was elected. Chamber Pres ident Russel Pratt and William Hammond, tourist chairman, offi ciated at the meeting, explaining what the Chamber would like to see come out of the meeting. it was ine ieeung ax uw group that an association of this kind could talk over such things as coming meetings in the city, lodg ing rates, guides to customers for meals in Salem and other conve niences in order to keep trade in the city. CRESWEIX CURBS LIQUOR CRESWELL m There will bej no buying of arinks across the Dar in CreswelL The City Council decided Monday night to reject applications for liquor-by -the-drfnk licenses. The town's votes i n November were against liquor by the, drink. Battle Over Price Basis' grade A milk pot 'in the bottle than is paid for "the dirtiest factory milk sold". He urged the dairymen to give the new order a try. Elbert DeGuire, who is sole Grade A milk distributor at Sil verton, asked that he be placed under the Portland price system. He explained that he had been forced to raise his price a half cent when the Marion County blanket order came through and that he would prefer to work un der the : Portland system which j would permit him to sell at one half cent lower per quart Others entering testimony were Herbert Hardy and Sheldon Douglas ' representing the Safe way stores; Gene Keller of the Salem Dairy Co-operative who stated that cost of production is lower in the Salem area than the Portland; L. W. HageL Salem dairymen, who favored price per hundred weight and C B. Mor ton, Oatis dairyman, who claimed the consumer had , been on a "milk price holiday for the past three years" as he urged a rise rather than a reduction in price as "everything else has been coming up". m At the close of tne saiem bear- f a- a. S -S) m ing Weidel said it would -be some weeks: before n opinion on the hearing would be rendered. 1SS3 New A Hied Plan Would Take Effect With True? PANMUNJOM (flThe Reds Wednesday angrily reject-! ed an Allied proposal that could free Korean war prisoners immediately after an armistice choose. ' "At the moment I should Gen, William K. Harrison Jr. Thfe Communists discussed Har rison's proposal during a one hour and 46 minute recess before their spokesman rejected it in angry tones. The Communist denounciation of Harrison's proposal came i during a 14 minute discussion following the recess. After the Reds deliv ered their blast the negotiators adjourned their sessions until It a.m. The senior Allied truce delegate presented the, proposal at the out set of Tuesday's session. He sug gested that Korean prisoners un willing to return home be released and restored to civilian status im mediajtely following the signing of a truce. Harrison also asked again the Red reaction to Pakistan as the Al lied choice for neutral custodian of prisoners reluctant to be repa triated. . He assured the Communists "it is our concept that the i neutral custodian would have full; control of the security and administra tioi of all prisoners placed in their hands" inside Korea. ! An Allied spokesman told cor respondents that under the new Allied proposal, the Koreans would be made, civilians .after an armis tice and thus would become dis- t - , . pizcea persons. : Under the draft armistice agree ment these persons would then be given help in going to the loca tion they desired. Farmers Raid School Rooms, Rural school officials Tuesday appealed to State Labor Commis sioner W. E. Kimsey to crack down on farmers who are raiding (Willa mette valley classrooms for field labor. , The school men told Kimsey that in some areas children have dropp ed out of school in wholesale lots to work in the fields. It is worse this year than ever before, they testified. One Union High School in Marion County reported a class room drop of 15 per cent. The labor commissioner, who ad ministers the Child Labori Law. immediately warned farmers that hiring a minor under 16 years of age while schools are in session is illegal and punishable under fed eral Laws. Farmers, who come under fed eral law. are subject to fines as high as $10,000 with imprisonment for illegal hiring of minors. A farmer, Kimsey said, can ! work minors under 16 legally, only, be fore and after school hours and on week ends during the school, year. Kimsey emphasized there is no excuse for farmers to raid schools for field labor at this timer since there is a surplus of adult workers. East Albany Home Burns Statesman News Serrie ALBANY The home of: Mrs. Ralph Barker in East Albany, was badly burned inside late Mon day afternoon and about $2,500 worth of damage done. Cause of .the fire was said by firemen to have been from de fective wiring. Mrs. Barker, an invalid, escaped from possible serious injury in the fire; when a visiting neighbor, Mrs. Ralph Barton, discovered the fire and helped Mrs. Barker to safety. The house was partially insured. Clear Lake School j! Bond Vote Scheduled - : i- i ' I! . . SUtwmsa Nsws Ssnrtesf ? CLEAR LAKE Residents of this school district will go to the colls Mar 21 to vote on a $20,000 bond issue for an additional class room. Plans are to build a large room with. a stage at -one end and to make some improvements to the two existing rooms4j AMERICANS WARNED i ,. MANILA m Americana were warned Tuesday to keep off high ways after nightfall as a result of mounting Communist Huk vio lence, .... Teachers Say No, 53 and let them settle where they , , . v say progress is zero," said Lt after the meeting. , . ' 4-H Baking, Woodworldng; EntriesJudH Statcmmaa Ntwi Serrlc STAYTON-Judges started giv ing close attention to hundreds of homemade exhibits here Tuesday as the annual Marion County 4-11 Spring Show competition opened -Clothing demonstrations ; a nj judging will feature the Wednes day program. The show continue! through Friday, with most ever(U taking place at the civic build ing. Five of seven blue ribbon win ners in Woodworking I won the chance to' exhibit at the State Fair as well as their ribbons. These were Larry Cummin gs, Keizer; Donald Brooks and Rudy Sonnen, Broadacres; Jim. Lau man, Marion; Kenneth Ware, Stayton, Blue ribbons also went to Lar ry Baker, Marion, and Leonard Hayes, Keizer in that divsion. In Woodworking II (permitting use of some power tools) Garry Sit ton MdvWlllia JIcGilL both of Marion,' won blue robbons. - - James Jones, 13-y ear-old Fruit land boy, took the top honor in woodworking ' with power tools. (HI), for the entomology cabin et he made for his hobby of col lecting insects. It includes seven draws and a fitting board. His other projects this year include a chest and 70 mounting blocks for bis hobby, as well as a thread board, grape arbor, pig pen, she! ter and trough. " Marie DuRette, Buttevillc. top ped 14 girls in a cake baking con test winning a blue ribbon and State Fair entry. Also winning blue ribbons were Prise ilia Dur ham, Keizer; Carol Adams, Jeff erson; Gaylene VanCIeave and Carolyn Crum, Middle Grove; Di ane LovelL Stayton. The mercury continued to shoot upwards Tuesday and lev eled off at 87 degrees to mark the hottest day this year. .-. But tne weatherman sees .a slack off in the heat for - today and predicts a. high of 75 with the chance of scattered showers. Thursday's forecast calls .' for cooler temperatures than today. Roseburg recorded 90 yester day and Portland 86. . . . In Salem the high point on the thermometer came at 3 p.m., bat by 5:30 p.m. the mercury had fallen to 75 and at midnight read 57.: -v-i Mercury Hits 87 Degrees 400 Passengers ;: T Transfer Safely As Ships Collide .: LONDON. England WVA Brit ! ish North Sea steamer and an L American freighter collided just : before dawn Wednesday off Eng- : land's southeast coast and aD . 400 or more passengers were ; transferred safely- from the ap- m parently-sinking steamer to the j freighter. , The Ships were tne 4,io-ion r British Duke of York and the i 7.607-ton Haiti Victory. WESTERN INTERNATIONAL At Victoria S. Salem T i . At Lvwlstoa 5. Yakima 4 ; ; . At Vancouver 5, Tri-Clty S At Wenatchs 1. Calary 1 ' AMERICAN LEAGUE , At Cleveland 7,, New York 11 At St. Lpuls X. Philadelphia t. At Chicago 1 Boston S - '. - At Detroit 4. Washington . 14 - NATIONAL LEAGUE, Alt games rained out. ' '. COAST LEAGUE .: At Portland S. Seattle a : At Hollywood S. San Francisco "1 At Oakland 4. Los Angeles S . At Saa Ctego 2. Sacramento; 1 fr it (J