1 (Sac 1) Skrtaamcm. Salam. Or- Wad.. April 21. 1954
Hensel Replies
To
Chars;
es
By McCarthy
'Story ilsa on page one)
WASHINGTON JP Asst. Secre
tary of Defense H. Struve Hensel
replied Tuesday to charges by Sen.
McCarthy that an army attack on
the senator was made to cover up
Hensel's World War II business
dealings.
Hensel said he has had an in
active partnership in Arthur L.
Peirson Co., which he said sup
plied food to private steamship
companies and private ship chan
dlers. He said he has withdrawn
no profits from the firm, but that
profits have been credited to him
on its books, and if I'm very
lucky. I might get $10,000" out of
it later on. He said income taxes
have been paid on the profits. In
response to a question. Hensel said
he invested no money in the firm,
that his contribution was help in
organizing and getting it going. He
asserted that "the allegations that
there has been anything illegal or
even unethical in my financial or
governmental history is both mali
cious and dishonest."
McCarthy was asked to comment
on Hensel's statement when he
landed in Houston. Tex . late Tues
day afternoon, returning from
Washigton.
Suggests Lawsuit
"I haven't seen the statement."
he said, "but I understand he's
suggesting we thrash this out in a
lawsuit
"I wouldn't cooperate in any de
lay like that.
'Hensel knows it would take
ears to do this in a trial. We
will be under oath when the com
mittee hears this case and the wit
nesses will be under nath. He can
call any witnesses he wants to.
' After that's over, if he wants
me to repeat it anywhere else. 1
can see no reason why I shouldn't
repeat this stuff."
He was asked if instead of
"stuff" he meant 'charges" and
he replied. "It's not charges It's
just information."
McCarthy said he believes the
public will be able to judge for
itself when the testimony is pre
sented before the subcommittee.
McCarthy added he did not be
lieve Hensel will press for a law
suit. He said, "if at some future
time he still wants a lawsuit and
I don't think he will I see no rea
son why not have one. Rut I will
not cooperate with him in any de
lay now."
Blocked Efforts
McCarthy also charged in the
5.000- word "bill of , particulars"
that Secretary of the Army Stevens
and Army General Counsel John
G. Adams repeatedly blocked ef
forts to find out "who was respon
sible for protecting Communist in
filtration" in the Army.
So the battle raged hotter than
ever as the investigations subcom
mittee prepared at last to open its
public hearings at 10 a. m. (EST)
Thursday.
Seek Answers
In the welter of accusations and
counter-accusations, these are the
main things the seven-man commit
tee is supposed to get to the bottom
of:
1. Charges by Secretary of the
Army Stevens and others that Mc
Carthy and aides brought improp
er pressure to get favored treat
ment for G. David Schine, a weal
thy young New Yorker who was
an unpaid consultant to the sub
committee until he has drafted last
November.
2. Counter-charges by the Mc
Carthy forces that the Army tried
to "blackmail" them out of in
vestigating its handling of alleged
subversives.
Sen. Mundt iR-SD' will preside
at the hearings. McCarthy stepped
out of the chairmanship in his fa
vorfor purposes of this inquiry
some time ago. Mundt said the
Army's case will be presented first.
He also announced that a long con
troversy over McCarthy's role in
the hearings has been settled on a
basis "mutually acceptable to all."
This agreement provides McCar
thy won't take part in any deliber
ations of the subcommittee, won't
vote and won't take part in the
writing of the group's report. But
McCarthy, Stcrens and other prin
cipals "shall have the same right
to cross-examine as the members
of the subcommittee."
ARMY TO BUY LUMBER
PORTLAND tfv-The Army will
buy 107,232,670 board feet of lum
ber here in the near future for
shipment to military installations
in the Pacific area.
NOW PLAYING!
hinwaCfAOR!
in
Iltl fHlllll
Omfl KEEL LAUAS -
Also la Cinemascope V
"Pot And Ptasant Overture"
'0,,ndc! Ho",ing
irmeon round
A wounded homing pigeon, with
out a message, was taken; to a
new home Tuesday after he was
found on the front lawn of Mrs.
Carl Graves, 210 N. lSth Slr
Mrs. Graves said she "noticed
the bird floundering on the grass
and when she picked it up she
noticed the special tag on its leg
identifying it as a homing pigeon.
City police took the bird to Tom
D. Pomeroy Jr.. 3935 Rivercrest
Dr.. a Salem pigeon enthusiast,
who confirmed that it was a hom
ing pigeon and he thought th
bird's wing may have been in
jured by BB shot. He said it could
be mended.
Aussies Keep
Close Guard on
Mrs. Petrov
DARWIN. Australia tfl Aus
tralian security police kept a close
guard Tuesday over Mrs. Vladimir
Petrov, who decided to seek po
litical asylum here with her hus
band rather than return to the
Soviet Union.
Smiling and apparently happy
at her choice, Mrs. Petrov waited
for word from the Australians that
a plane would take her to Canberra
and a reunion with her husband,
the former third secretary in the
Soviet Embassy.
i He had abandoned Communism
: last week and brought with him !
I documents exposing a Soviet - led j
; spy ring in Australia. i
I Mrs Petrov was taken oft a
Zurich bound British plane here
after a fracas in which Australian
i security guards took pistols away
I from two Soviet couriers who had
taken her aboard the plane at
i Sydney.
The Soviet ambassador to Aus
jtralier. Nikolai Generalov, protest
i ed angrily that this amounted to
; "armed assault" on the couriers
: and illegal detention of Mrs. Pet
rov.
Prime Minister Robert G. Men
zies asserted Australia behaved
with "meticulous care" and with
"due regard to international con
ventions." Mrs Petrov made her decision
final after a telephone call to her
husband at Canberra.
The call convinced her Petrov
was still alive and she agreed to
remain with R. S. Leyriin. North
ern Territory secretary, who met
the plane and talked with Mrs.
Petrov despite attempts of her So
viet guards to stop him.
The two guards and F. R. Kislit
syn, second secretary of the Soviet
Embassy at Canberra, continued
their trip.
Council Urged
To Review
Area's Zoning
'Story also on Page 1.)
Salem Planning Commission
Tuesday night suggested that the
City Council reconsider the divi
sion of a close-in area between
light industrial and R-4 small-unit
residential zoning.
The area involved lies between
Trade. Mill. South Capitol and
Winter Streets. The Trade Street
part is in M l and the southern
part of the area in R-4. by virtue
of a last-minute change when the
Council recently adopted the re
vised city zoning code.
Realtor Richard Grabenhorst re
cently wrote the city a letter urg
ing that the entire area be put
in the light industry zone, as
originally recommended by the
zoners.
After public hearing last muht
at the City Hall meeting, the
planners allowed Wayne Traschel
to build a small wash house at
2230 Maple Ave. where a group of
court apartments are located.
But Peter Loewen was advised
the commission is not in favor of
a business zone at Gerth and
Franklin Streets, which would per
mit a beauty shop to be located
there. The commissioners said
Loewen would have to institute
formal zone change proceedings
before hearings would be called.
Nobody appeared for a sched
uled hearing on a St Mark's Luth
eran Church request for permis
sion to rebuild at 343 N. Church
St. The matter was tabled.
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Convention Details in Hands
Ti e;r" y -r
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Registration of delegates for; the 41st convention of the Oregon Congress of Parents and Teachers
began in Salem Tuesday night, but convention officials got down to business earlier with meetings
at the First Methodist Church. Shown above at the church are (left to right) Mrs. James Bun
nell, Salem, hospitality chairman; E. Dean Anderson, Portland, program chairman; Mrs. C. A.
Fratzke, Independence, decorations chairman, and .Mrs. Lawrence Fisher, Portland, program com
mittee (Statesman photo.) (Stories on' pages 1 and 6, sec. 1.)
Educators
Name Knpnu
Citizen of Year
Gardner Knapp. board merpber
of Salem School Disrict 24CJ, was
named Marion County citizen of
the year Tuesday night at the
regular quarterly meeting oT the
Oregon Educator's Association,
Marion County chapter, at the
Stayton school.
A certificate of this award was
made on the basis of Knapp's
meritorious service in the field of
education in Marion County.; A
similar local award was made to
a Stayton board member before
the more than 135 present.
Installation of the 1954-55 offic
ers included Merlin Morey, .lay
ton, president, Mrs. Elizabeth
McN'ary. Hubbard, vice-president;
Mrs. Gladys Belden, Stayton. sec
retary, and Mrs. Frances Draper,
St. Paul, treasurer.
Guest speaker at the meeting
was Warren Tinker, Portland,
state president of the OEA. .
Formosa Says
China Troops
In Indochina
TAIPEH. Formosa m Charges
that Chinese Communist troops
have been sent into Indochiria to
take part in the war were voiced
Tuesday by Nationalist Chinas
military chief of staff and foreign
minister
Both said their charges j had
sound backing. Foreign Minister
George Yeh said the situation fnade
the Indochina question no linger
one for discussion at Geneva April
26 but rather one for United Na
tions' handling as an act of aggres
sion. , j
Gen Chou Chi-.Iou. chief of ptaff.
said in a newspaper interview' that
fully trustworthy intelligence sourc
es reported the entry of Chinese
Red soldiers in Indochina altrjough
the number had not yet been
learned. I
Llovd BuildiiiffUo
House Interior
Bureau Offices!
. WASHINGTON Secretary
of the Interior Douglas McKay
announced Tuesday that; all
Interior Department agencies in
the Portland area will be housed
in the Lloyd Building.
McKay said the move had been
authorized by the General Services
Administration, which arranges
housing for federal agencies.
Earlier this year several con
gressmen had opposed the move
on grounds that the lease for the
Lloyd Building was too expensive.
E3E
DEI DDE!
HELD
"rrtri istrrriii
ututuniruu t , jt,-,
-e . ! t
"wondrous" rvi
- Jnur Cos I f' ' t
"A CHARMER" Vjl
Cm, www r.
Bir.HIF ANDRUSr.n
Brooklyn's most lovable
character!
2ND BIG HIT
McDonald Carey -Joanne Dru
HANNAH LEE
4 "1"; li i mm
Blood Drawing
Mill Citv Fridav
at
statrman Nwi Srrvlr
MILL CITY A blood drawing
will be held in Mill Cifv Friday
for the first time in over a' year.
The Mill City stop is one of three
current visits of the Red Cross
bloodmobile slated for the next
few weeks.
The drawing will be held in the
Mill City High School from 4 to
7:30 p.m. and is sponsored by the
Mill City Masonic Lodie.
Other drawings slated are May
6 in Salem at the Naval and Ma
rine Corps Armory o n Airport
Road. The next drawing is a
change of date for the regular
drawing at the Ferry Street Arm
ory in Salem usually held the
first Thursday of each monthl to
be held on May 17.
Salem Woman's
Grandson Chosen
For West Point
Word was received Tuesday
that Larry B. Burchell, 18, grand
son of Mrs. Mae Burchell, Salem
Route 4, Box 30, has been pre
sented a presidential appoint
ment to W'esr Point Military
Academy.
Burchell, son of Col. and Mrs.
Edward L. , Burchell, currently
resides at Washington, D. C,
where he's been attending prepa
ratory school the past seven
months. Burchell is presently sta
tioned at. Alexander, Va.
Col. Burchell, a graduate of
Oregon State College, has a sis
ter. Mrs. John Graham, living at
1335 N. Cottage St.
Highway Kelav
Helps Save Life of
Premature Babv
NEWPORT. Ore. A fast,
highway relay of special equip
ment drew the credit Tuesday for
helping a premature baby survive
here.
A vaporizing device for use
inside an oxygen tent was needed
for the infant. Portland city police
pickcl up the device and raced it
to a state patrolman, who in turn
sped to McMinnville. There a New
port physician was waiting. He
ceme the rest of the way.
The device was put to work
Monday night. Attendants at
Pacific Community Hospital re
ported Tuesday that the baby 'a
chances of survival had improved
materially.
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6
U.S. Business
Trends Mixed
During March
WASHINGTON JT The De
partment of Commerce raid Tues
day mixed ups and downs contin
ued to mark the business situation
in March.
Total production and employ
ment were lower but improve
ments were noted in some sectors
of the economy.
Its analysis gav this picture of
the general business situation in
March and early April:
Although overall production and
employment declined, there were
scattered improvements, and one
big bright spot construction.
The output of motor vehicles was
higher in March than in February.
The March daily average of pro
duction was also higher than in
February for paperboard, televi
sion sety and crude petroleum.
Steel production dropped in Feb
ruary, but held about steady from
mid-March through mid-April at 68
per cent of capacity.
Construction was extremely ac
tive in March, and "has strongly
bolstered aggregate demand 60 far
this year.
Retail sales in the first quarter
of the year, seasonally adjusted.
were about 2 per cent below sales
in the last three months of 1953,
and about 4 per cent less than in
the first quarter of 1953.
Starts Today Open 6:45
ttarrhtf
ELR0Y T&aryltjs H1RSCH
LLOYD NOLAN
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JOAN FORREST
LESLIE TUCKER
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BASIL AUDREY HUGH
RATHBONE- DALTON MARLOWE
1ND 110 HIT
Starring: Fornando Lamas and Rhonda Fkming
Dr. Hunter
Keynotes YM
Drive Dinner
(Story also on Page 1)
"No city has a good youth pro
gram unless it has a good
YMCA." it was maintained Tues
day night by Dr. Frederick M.
Hunter of Eugene in a talk be
fore 285 leaders in the Salem YM's
$450,000 building fund drive.
The retired chancellor of Ort
gon higher education gave the
keynote speech at the YM where
the big campaign was launched.
The YMCA is going to the Sa
lem area public for money enough
to build a three story addition to
the Y, which will serve as a sep
arate youth activity center, make
room for expanded adult services
and provide such new facilities as
a chapel, a standard gymnasium
and instruction swimming pool.
Emphasizing the importance of
YMCA in Christian leadership and
in good democratic citizenship, the
chancellor emeritus declared a
community's youth program must
keep pace with its industrial and
financial growth.
"If not, the result is internal
menace the gangster - breed
ing snots such as found in Chicago
and New York and other cities,"
Dr. Hunter said.
The YM occupies a prominent
spot in service to youth, said the
speaker, because even the home,
the church and the public pro
grams cannot be depended on for
the full job of training good citi
zens. He cited in this connection the
greater number of broken homes,
the fact that the churches fail to
reach 40 per cent of youth and
the lack of spiritual background
to public recreation programs.
Campaign Chairman Roy Hsr
land and Citizens Committee
Chairman Charles A. Sprague di
vided the master of ceremonies
honors at the dinner meeting in
the YMCA.
Teams Chairman Coburn Gia
benhorst introduced the force of
volunteer fund solicitors, headed
bv section chairmen G. A. Ar
buckle. Robert O. Smith and El
mer Berg.
A ceremonious closing to the
big campaign affair came in the
darkened gymnasium when prin
ciples of YMCA were enunciated
by four spotlighted Hi-Y leaders
in turn Herbert Triplett. Ken
neth Rawlings, Tom Pickens and
Ray Taylor.
An illustration of right and
wrong ways to approach the pros
pective giver was given by a
team of four Salem radio figures.
Mrs. Jay McMurren. Glen Smith,
Carl Ritchie and William Ross.
PHILCO
SALES and SERVICE
SORENSON'S
TV and Appliance
1141 S. Com'l. Ph. 4-2877
Gates Open 6:45
Show At 7:15
STARTS TODAY!
Two Technicolor Hits
Jeff Chandler
Maureen O'Hara
"War'Arrow"
Also
Doris Day
. Howard Keel
"CalamtVjane"
Brine the Whole Family
'See A Mole In Your Car
J ni . w- win
Logger's Error
Cuts Off Portland
Radio Station
PORTLAND Lff A construction
crew cut down a tree in Portland's
West Hills Tuesday, but the tree
fell the wrong direction and onto
a power line, touching off these
events :
The line broke and a power
surge backed into a 2,400-volt
underground switch in downtown
Portland. The switch blew up,
sending an iron manhole cover
eight feet into the air at a down
town intersection.
Power was cut from some sec
tions of the West Hills and
downtown areas.
Radio station KEX was off the
air 27 minutes.
DANCE
TONIGHT
Clysfal Gardens
Old Tizna and Modern
Music by "Pop" Edwards
e
Ikdlfogf
aft
in fidioteKfiip prizes
fa hp winner
Plus an lmpres$iva array of mtrchandis award
IN THE
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SOAP BOX DERBY
Akron, Ohio, August 15
Enter and win your local race, then represent
your home town in the "greatest amateur racing
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The 1954 rules make it easier than ever before to
build a good Soap Box Derby racer. &o, get your
free rule book from your Chevrolet dealer, then
build to win.
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Douqlas McKay Chevrobf Co
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Cottonwoods
Thurs. Apr. 22
THREE STARS
Tommy Duncan
Merle Travis
Skeets McDonald
Plus - Western
Dance Band
Dancing 9 to 1 A. M.
Adm. 1.50 Tax Inc.
i i v
all boys 11-15
Co-sponsored by Chevrolet
Division of General Motors
and
110
Salam. OrMBir