The Oregon statesman. (Salem, Or.) 1916-1980, April 21, 1954, Image 10

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The Oregon statesman., April 21, 1954, Page 10, Image 10

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Newspaper Page Text10 (Sec 1 Statesman, Salem, Ore.. WecU April 21, 1954 Testimony in FHA Loan Probe Points To Bribe WASHINGTON Iff) Charges of bribe-seeking and possible corrup tion in setting FHA loan insurance were aired Tuesday amid testi mony that 1,149 apartment builders reaped more than 65 million dollars in quick profits from their opera tiohs. No names were mentioned in testimony at twin hearings by the Senate Banking Committee and the Joint Committee en Reduction of Non-Essential Federal Expendi tures headed by Sen. Byrd (D-Va). Albert M. Cole, head of the Hous ing and Home Finance Agency HHFA) told the Banking Commit tee headed by Sen. Capehart (R Jnd) that one FHA official was permitted to resign while investi gators were looking into reports that he had been "gambling in large amounts" and 'demanding money from people for the purpose of securing commitments from the FHA." Corruption Indicated Before the Byrd group. Internal Revenue Commissioner T. Coleman Andrews said there was one situa- Irrigation at Yamhill Gains New Interest By LILLIE L. MADSEN Farm Editor, The Statesman Two recent events have re sulted in stimulating new inter est in Yamhill County in de velopment of potential irrigation projects in the area, Bill Moore, staff writer on the McMinnville Daily News Register, reported this week. First of these, according to Moore, was the withdrawal of the U.S. Army engineers from participation in the operation of the Lafayette Locks on the Yam hill River, which leaves in doubt the up-river pool that is the source of water for sprinkling irrigation of some 1,800 acres. Second was the move in the south central part of the county by Chambers of Commerce of Sheridan and Willamina to re vive the Yamhill project, which has been more or less dormant since World War II. Third Project A third project is now active in the Hopewell area where far mers south of Dayton are getting behind a move to irrigate some 4,400 acres from a proposed pumping plant across the Wil lamette from Windsor Island, about two miles south of the Polk County line. From this, water would be carried by canal along the base of the Amity hills approximately five miles north ward from HopewelL The reconnaisance survey on the Hopewell project is complet ed and, according to O. M. Browne, acting regional planning engineer, can be given detailed studies when "additional and pos itive local interest and support are in evidence, and when ade quate general investigation funds are available." Carl H. Francis, Dayton at torney, and Lawrence E. Sohr weid, McMinnville farmer, have taken a lead to determine the status of the proposed irrigation district to utilize the Lafayette Locks and pool. A conference between interested irrigators and representatives of the U.S. Army engineers is being planned to discuss this project. Sees Activity Renewal Clifford Elliott, manager of the McMinnville Chamber of Commerce, reports that he be lieves the now dormant Yamhill project might be returned to ac tivity, if farmers and other or ganized groups of the county will make their desires known to the Bureau of Reclamation and the Corps of Army Engineers. Quite a bit of survey work was done between 1941 and 1944, but evi dently dropped after farmers failed to attend a meeting called in 1944 to push the project It was estimated this week, that the "forgotten" Yamhill project would provide water for the irrigation of 65,780 acres. At the time the project was alive, it was laid out in three main units: The Amity on the south of the South Yamhill River; the McMinnville on the north of the South Yamhill, and the Carlton or. the North Yamhill River. The year-by-year depletion of water flow in the Yamhill River is worrying farmers now using the river for irrigation systems. Innocent Plea In FHA Case PORTLAND m John Milton Owen of Portland, accused of making false statements in deal ings with the Federal Housing Administration entered a plea of innocent in federal court Tuesday. Trial was set for June 1. Owen, 47, is accused of making misstatements in connection with FHA loan credit applications, com pletion certificates and purchase - Seeking tion in which "we think there was corruption in appraising" the cost of a project to get an FHA loan guarantee. He gave no details. Andrews also testified about the 65 million dollar profit which he said came "almost entirely from the difference between . amounts borrowed and amounts spent" on the 1,149 projects. The loans totaled $1419,674,000, he said. The Revenue Service is investi gating L819 such cases, he said, but he presented a statistical sum mary only for the smaller number. Byrd mentioned one project. Glen Oaks Village in Queens County, N. Y., and said loans on it totaled 24 millions although: it was built for 20 millions. Andrews said not all the loans on that project were FHA insured, however. He said there appeared to be no fraud in that case, either civil or criminal, be cause the builders had fully dis closed their income in tax returns. Rents Higher Byrd said he understood rents in the Glen Oaks project were "15, or 20 or 25 per cent higher" because of the size of the loan. Cole told the Banking Committee he would recommend within a week ways of closing loopholes to "tight en up the organization, the pro grams and the procedures" of housing legislation. Capehart asked the recommenda tions to permit the committee to proceed with work on a general housing bill now; before it. Some have expressed fear that the cur rent housing probe might interfere with passage of the new housing program asked by President Eisen hower. Both the Capehart and Byrd com mittees ordered public hearings after the administration announced last week it was accepting the res ignation of FHA Commissioner Guy T. O. Hollyday and making its own probe. Asked Resignation Cole said he asked the White House to obtain Hollyday's resigna tion because of FHA s laxity in in vestigating and punishing alleged frauds and abuses. He criticized Hollyday for accepting, with a "laudatory letter" the resignation of the unnamed official who was under suspicion of gambling and demanding money. He said he discussed the case with Hollyday in July, 1953, and "suggested that since this person had important decisions to make as to whether one company or another should get an FHA com mitment, there Should be an in vestigation made." Cole insisted that he himself had no authority to discharge the man or to force FHA to take any such action. "CITY OP PORTLAND" J THE ONLY COMPLETE STREAMLINER PORTLAND AND CHICAGO A choice of sleeping car accommodations. Reserved cushioned . Wonderful pared to your order, graciously .set DAILY SERVICE LOW F, Lv. Portland Ask About UNION PACIFIC'S NEW FAMILY TRAVEL PLAN . extra travel extra savings! General Passenger Agent 751 Pittock Block Portland AOAD OF 1 T 1 - JU Wife Rejects Settlement? LOS ANGELES (A - James Roosevelt's estranged wife. Ro melle, Tuesday rejected Jus com promise offer of a divorce and property settlement, labeling it "just another publicity; stunt" Arthur E. Schiffermah, her at torney, said the move "is designed to attempt to prejudice; the court and to arouse public opinion and sympathy in Mr. Roosevelt's be half. Apparently Mr. J Roosevelt prefers to make emotional appeals to public opinion rather than fb leave this matter for judicial de termination." i . The attorney said that while Roosevelt's desire for a; divorce is not new, his wife never has wanted one. "She filed her action for sepa rate maintenance and she sees no reason for becoming a party to any collusive divorce! arrange ment" Roosevelt, who is running for Congress, Monday made the prop erty settlement and divorce offer in filing notice in Pasadena Super ior Court that he will petition on April 30 for permission! to amend his separate maintenance suit to ask for a divorce instead. The filings quote a letter be tween the opposing attorneys in dicating that Mrs. Roosevelt also will ask for divorce on grounds of unspecified cruelty, dropping alle gations of adultery, which Roose velt has denied. In essence, Roosevelt offered half his holdings and net income to Mrs. Roosevelt and their three children. The offer is similar to one contained in a 1945 letter to her he signed. However, Roosevelt, who is seeking the Democratic nomination in the 28th Congression al District, insists that letter is not a binding contract. Roosevelt is under court order to pay his wife $1,025 a month temporary support. She had sought $3,500. Bank Robber Gets 2 Years PORTLAND UP! Luray White, who robbed the Hollywood branch of the First National Bank of $711 here last October, was sentenced Tuesday to two years in prison. Federal Judge Gus J. Solomon said he was giving a light sentence because of White's "fairly good" record in the past, and the fact that he did not use a gun in the robbery. He held his hand in a sack in imitation of a gun. NO PROGRESS MADE PORTLAND UPV Federal media tors reported Tuesday that "no progress" had been made in Woodworkers and representatives of about 400 Pacific Northwest logging operators. coach seats . . . . . with the latest improi dining car meals indivic 5:30 advantages Phone BRoadway 7771 5, Oregon adjustable, deeo ares m THE DAILY STREAMLINERS Huge Airplanes to Serve as Sprayers i I I-1 - - ' -- ' i i ii in i Leo "Ace" Demers, Salem crop duster and sprayer who is one of the few men in the nation using multi-engine airplanes as sprayers, has recently purchased two huge Navy PBY airplanes to use as sprayers this season. One of the unusual looking craft is shown above being inspected by Demers' two sons, Leo Jr., and James. In addition to the PBY's, Demers has three twin-engine B-18s, all based at the Salem airport (Statesman photo.) 3 Sources of Oregon Road Funds Decline Three of four sources of state highway revenues showed a de crease for the first quarter of this year. Secretary of State Earl T. Newbry reported Tuesday. The gasoline tax, motor car rier fees, and fines for traffic violations were below collections for 1953. Motor vehicle registra tions were the only source of highway revenues to show an in crease. In the first quarter of 1953 these four sources of highway revenues showed collections of 11,996,676. The 1954 figure was $11,601,223, a decrease of ap proximately 395,000 below a year ago. Newbry pointed out that cities and counties participate in these highway revenues at the rate of 110 per cent and 19 per cent re spectively. Some $434,000 of the $3,630,000 collected in registra tion fees in the first quarter will be distributed in the second quarter. Demand for crocodile leather is so great that crocodiles are be coming scarce in many areas of the world says the National Geo graphic Society. BETWEEN I 4 -;rM tfTITT I I I I I (III IN) ii i I )'U'" j,ll.-'!.1 Sack Enters PORTLAND UP) George F. Sack, 57, whose two previous wives met violent deaths, entered a plea of innocent Tuesday to a charge of first degree murder of his third wife. He is accused of slaying Mrs. Goldie Goodrich Sack Feb. 16, by placing her in the trunk of his automobile where she was asphyxi ated. The body was found in a clump of bushes in the outskirts of Portland Feb. 18. Migration to Australia Decreases in 1953 CANBERRA W) Australia gained only 42,883 people from migration in 1953, less than half the 1952 figure. There were 74, 915 arrivals but 32,032 people, in cluding 25,295 Australians, left the country. Many Australians who leave the coutnry are young people in their early twenties going chiefly to England to study or gain ex perience. Many marry and remain away indefinitely. Rat Ot laxt Triaalawi 75 trimnwf-lvM DOww Rm Eny Startiai 1H kp.. 4-cyct tnfint, with automatic rewind startar and 6Vi to 1 1' radactioa. Siltnt awfflar. friea$2J1.W fts 5aaS2B3aV- as Itt It Ini FJactrt-tm It rotary pwwat I ay S4J0 ftPM Caaaral Eraclnc ka tar. 110. tO-cycta AC Safety nlwf tppvowd. Lm4 tMrfctwr art- J met J72.W JlrQuieH In Dt lua Siirt Jtt - - .,,' 21 salt propelled rotary power i "ltJtJa&'V1109 " . ' v mower. Reo Easy Starting 1H fcp, "" all f f ?, 'f Vv - '" V 4-eycle engine with automatic re- m ? & jKj i lf-.H . . ;, --. f,tj" wind starter and silent muffler. , i 'Lm-' - 5 V ' " ' ? 2-speed shift. Price 1M.49 I -' - "tf ""fa.V" ' " ' - - ?tp."4 i 'A? y antb automatic mrmt startar ana) 11 .a-0 ' V. 'VS IH li ' " J srkmt multWr. Laat marcher at- If w"" ,-,,- W. " .ll ii ia- tadinwfrt optional. Price 17iJS 1 mi-L m .."wmi """ 1 "" Kelly's Supply Co. 129 N. Ferry SL, Albany, Oregon J. R mlay & Son V Oregon , iiae. & Implem. Co. P. O. Box 158, Caaby, Oregon Calking Craft Boat Co. P. O. Bex 491, Delate, Oretjoa John Warren Hardware Inc. 771-775 Willamette, P. O. Bex 849, Eugene, Oregon ' i u. . i I v , v. J Innocent Plea Sack's first wife died in a Chicago apartment house fire in the early 1920s. His second wife was shot to death several years later. Sack was accused of first degree mur der in the shooting, but was found insane and committed to an Illinois asylum. He was released in 1932. Sack also has been questioned about the disappearance of two persons in Washington state. ATTENTION! Members of Cannery Workers Local 670. Pue to conflicting meeting dates, the regular meeting of Cannery Workers Local 670 has been changed to Wednesday, April 21st - 8:00 P. M., Hall No. 1 Labor Temple. IMPORTANT MEETING CONTRACT REPORTS TO DATE LABOR TEMPLE 445 CENTER STREET lis Bt tixa liiiBttt It aowa mewar. ftaa Easy Start ing 1H ap., 4-cycta anpoa witk 2 to 1 far reduction and silaat mafltar; automatic rewind atartar. Prica $123.95 IS' Tawa Haaaa actrtc nadat ilso availaWa. In layila Dt tin 21'powarmawar. 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Commercial St, Salem, Oregon Batdorf' s Home & Auto 2095 Fairgrounds R&, Salem, Oregon Harry 147 S, Commercial, Salem, Oregon Man Acquitted, Another Sent To Grand Jiny One man was; acquitted of a charge involving; stolen property and another man was bound over to the grand jury on a burglary charge when they appeared in Marion County District Court John Miles: Avery, Salem, charged with burglarizing the Bishop Building in downtown Sa lem early Sunday, was ordered held for the grand jury by Judge Val Sloper. Avery is held in lieu of $2,500 bail. A district court jury acquitted Walter Stanley Carbaugh, 605 Spruce St., of a charge of con cealing stolen property following a trial Tuesday. Carbaugh was arrested by Salem city police last Feb. 20. Police said he had in his car several articles reported stolen in recent burglries. Carbaugh's defense at his trial Tuesday was that the articles were taken by his younger broth er and that he was only return ing them to rightful owners. The younger brother has since been sent to MacLaren School for Boys. City police are still waiting for an improvement of Fred Lind say's condition at Salem Memo rial Hospital before talking with him about the Bishop Building burglary. In a signed statement, Avery named Lindsay, a room mate of his in a local hotel, as an accomplice in the burglary. Lind say was picked up in the street by Willamette Ambulance person nel half a block from the build ing and about two hours before discovery of the entry Sunday. He told ambulancemen he had been struck by a hit and run driver. He was admitted to the hospital with a fractured ankle. Avery claims that Lindsay was injured in a 25-foot drop through a skylight on the roof of the build ing and dragged himself to the street. Itt laliiaj 18 fas rotary powarmowar. Low Cost Mfhtwaitht 1H hp , 2-cyclt tnfina. Cuts woeds. tall f itsi. Laal imtfchr attachment avail Ibla. Prica $74.50 f o b. Linsinf. 18 ataetric nodal also arailaMa. The New Super-Hushed seen (but not heard). Come in and let ros show you this outstanding mower, this unbeatable value. Better yet, phone for a demonstration right on your own lawn. REO MOTORS, INC Hardware W. Scott Portland Talks of Payroll Cutback , PORTLAND tf The City Council is considering' lopping about 100 workers off the. city payroll for economy reasons. The council said it has budget requests for IS ft million dollars and expects income of about 13 H -million. The council estimated dis missal of 100 workers would save about $360,000 a year. The police chief and fire chief at once objected that their depart ments could not stand .any reductions. 11 Climbers Missing in Italian Alps ROME (J Eleven Italian holi day mountain, climbers were miss ing Tuesday night in the snow swept Alpine and Dolomite Moun tains as storms and cold lashed Italy for the fifth straight day. More than 50 carabinieri and alpinists returned from Grignetta Mountain north of Milan at dusk and said eight Easter holiday climbers still were missing there after 36 hours. Six other members of the party were found, unharmed, earlier Tuesday. Three other climbers, identified as Italian students, still were miss ing after having set out to climb a Dolomite peak near Trent. Al pine guides hunted for them all day Tuesday. THEY'RE HERE trMt mw rotary rwi models. Let's Mka eat to tfanonstrata m WrWMU SALEM'S COMPLETE SERVICE HEADQUARTERS For Power & Hand Mowers Authorized Service for REO - Power Products Harry W. Scott 147 South Commercial Free Demonstration ' Phone 3-4516 lit Rlllfll 18 powar mewar. IK kp 4-cyda Easy Starting Raa anfina. 2 to 1 tar redaction. Amaiinf low pnea tor top quality. Prica SS2.85 r.o.kv Lensinj, 21' modal also available. h4Z? 20. Howser Brothers 1185 S. 12th, Salem, Oregon Saffron Supply 325 North Commercial, Salem, Oregon a Salem Hardware Salem, Oregon Stettler Supply Co. Salem, Oregon Valley Farm Hardware 3935 SUTerton Bd, Salem, Oregon - order i.