2 (Sec 1 Statesman, Salom. Ore.. WecU May IS. 1954
Senate Committee Rescues
Public Housing Program Bill
By LEE GARRETT
WASHINGTON OH The Senate
Banking Committee voted Tuesday
to rescue the public housing pro
gram which the House sought to
kill.
The conynittee's action, if ap
proved by the Senate and the
House, would more than meet
President Eisenhower's request for
authority to build 35.000 units of
low - cost housing each year for
the next four years. The number
to be built each year would be left
to the President. The House had
rejected the request.
The committee, starting work on
a general housing bill, decided also
to try to rule out "windfall profits"
for builders of projects financed
with FHA insured loans. Dis
closure that such profits had been
made in the immediate post - war
jears rocked the Fedirai Housing
Administration (FHA) and brought
on a two - pronged congressional
investigation last month.
"Scandal Loophole"
Efforts to eliminate another
"scandal loophole" were put off
until Wednesday. Tha: involves the
alleged fleecing of home owners
under the FHA home repair pro
gram. The committee voted 12 3 to re
vive the 810.000 - unit public hous
ing program which Congress de
cided in 1949 should be built over
AFL Calls for
Federal Aid
For Schools
CHICAGO 'JT The American
Federation of Labor Tuesday pro
posed the government set up a
billion dollar fund for states "in
urgent need of help to modernize
and democratize their school sys
tems." The union's executive council
aid such a fund "would be the
wisest investment our government
could make in the future of our
country."
In another resolution, the council
urged that federal old age assist
ance benefits contributions be col
lected on all individual income up
to $4,200 a year, raising the present
annual $3,600 limit.
This proposal was telegraphed to
Rep. Reed (R NY), chairman of
the House Ways and Means Com
mittee by AFL President George
Meany.
Meany said continuing the $3,600
limit would cut benefits "up to
$10 per month for millions of work
ers, and up to $15 for retired cou
ples below recommendations of
President Eisenhower." Meany
said more than one half those cov
ered by the social security system
would be affected by benefit re
ductions if the wage ceiling on as
sessments is not hiked.
The council noted the Supreme
Court's ruling Monday that segre
gation in the public schools is un
constitutional. It said creation of
the huge education fund by Con
gress "would prevent noncompli
ance with the Supreme Court's de
cision by any state which might
otherwise plead poverty to excuse
its failure to provide the' necessary
facilities for the integration of its
public school system."
Tonight! Tonight! At All 4 Theatres! FREE Season Pass to Lucky Winner!
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0
Today!
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THRILLING
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a period of years. Although that
law has never been changed, its
operation has been restricted by
language written into appropria
tions bills in 1952 and 1953. Under
them, the program will automatic
ally come to a halt within another
year.
End Restrictions
The Senate committee action
would have the effect of wiping
out the later restrictions and re
storing the program to its original
form.
Committee chairman Capehart
said he and Sens. Bricker R
Ohio) and Bennett ( R Utah vot
ed against the amendment, offered
by Sen. Maybank D SO
Emperor of
Ethiopia to
See Northwest
WASHINGTON' - The Pacific
Northwest will get a three-day
glimpse at Emperor Haile Selassie
of Ethiopia during his six-week
tour of the United States which
starts this month.
It will be a hurried glimpse, at
best, and confined to appearances
in the State of Washington's three
largest cities and nearby points of
interest.
After two days jn Washington,
D. C. the emperor and his retinue
will head for Princeton, N. J., and
New York and then will swing
west. He is expected to visit Grand
Coulee Dam and Spokane on June
10: Seattle, its aircraft plants and
the Bremerton Navy Yard on June
11, and Mt. Rainier National Park
and Tacoma the next day.
He will stop next, on June 13,
at San Francisco.
The tour will combine many va
cation features with an intensive
look at America designed to per
mit the group to take home ideas
for the development of the African
nation.
Ethiopia has a potential of a
large-scale water power develop
ment, leading to the inclusion of
Coulee Dam in the visit to Wash
ington state.
Coal Miner
Is Weaver
TRINIDAD, Colo. (Weav
ing rugs, blankets and sweaters
is a profitable hobby for a husky
coal miner, Gilbert Fernandez,
who learned his avocation in the
depression days of" 1931, when
he attended a weaving class at
the Valdez. Colo . YMCA.
Since then, Fernandez has
woven about 1,600 articles
nearly all of which he sold. One
rug went for $150. His work is
patterned after the Chimayo In
dian style of weaving. His pat
terns are in his mind never on
paper. He uses nearly $50
worth of wool yarn and from
250 to 300 hours in completing a
5x7 foot rug. or blanket. He has
won high awards at the Colorado
State Fair and Los Angeles
County Fair for his weaving.
?etat
CALHOUN
CO-FEATURE
The committee left to its staff
the drafting of language which
would "make it absolutely impos
sible" for builders to make wind
fall profits under the FHA pro
gram. Such profits were made
w here loans exceeded the builder s
actual costs.
Musi Certify Co
One suggestion is that a builder
be required to certify the actual
cost of his project, and to return
any part of the loan which exceeds
a fixed percentage of the cost. The
percentage would yar with differ
ent types of FHA programs.
Capehart told newsmen the per-centage-of-cost
limitation was not
intended to apply, however, to
loans covering older homes the
value of which has increased since
their construction. It would apply,
he said, only where the builder
himself got the loan.
Other committee votes Tuesday
would extend authority of the Vet
erans Administration to make di
rect loans to veterans where such
loans are not otherwise available;
extend the farm housing program;
and designate the Housing and
Home Finance Agency to handle
loans for community facilities such
as water and sewer line extensions.
Dean Favors
Reserves for
Released GIs
SPOKANE JP Men discharged
from military' service have a
"moral obligation" to join the re
serves, Maj. Gen. William F. Dean,
who spent more than 37 months
as a prisoner of war in Korea,
said Tuesday.
The general, in an address to
the Spokane Chamber of Com
merce, warned against apathy in
the struggle with world Commu
nism. "We have a reserve on paper,
but not a ready reserve," he said,
adding that fewer than 45,000 of
the 900.000 men discharged last
year have joing reserve or national
guard units.
"The need for a reserve is
stronger today than ever before,"
he said.
Dean said he still isn't "free" the
way he would like to be because
of the publicity and speech making
he has gone throughsince his re
lease from Communist hands.
He said whenever he visits a
city he is first beseiged with news
men, fter they have "drined me
dry, I am led before an audience
and told to makeanother speech,"
he said.
He expressed hope the freedom
he wants, including reedom to pay
golf, will come soon.
LOST MONEY
OCEANPORT, N. Y. (INS)
Racing fans at Monmouth Park
have failed to cash in tickets on
winning horses worth $249,678.35
in the past eight years. There
is no official explanation of what
happens to these tickets, but ap
parently most are lost, accident
ally destroyed or misinterpreted
by their holders.
STARTS
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Shipbuildin
0
Increase in
i t
UIS. Forecast
SEATTLE m Maritime Ad
ministrator Louis S. Rothschild
said Tuesday night the next year
may be the largest this country
has ever had in peacetime ship
building.
He based the forecast on plans
for government-aided construction
of four new passenger ships and
on proposals of the Military Sea
Transportation Services (MSTS)
for more tankers' and other vessels.
His remarks were prepared for
delivery to the spring meeting of
the Society of Naval Architects and
Marine Engineers, held here.
Rothschild said the new adminis
tration had concluded, in a recent
study of maritime subsidy policy,
tnat there must be positive gov
ernmept encouragement to ship
purchasers, plus private initiative
in seeking the proper avenues to
exert that encouragement."
To this end, he said, the govern
ment has recommended to Con
gress extension of government in
surance of privately held ship
mortgages, and authorization to
sell some 325 million dollars of
ship mortgages now held by the
government and to use the money
in underwriting new ship construc
tion. Still under study are other rec
ommendations that U. S. shipbuild
ing be hoisted to 60 ships a year
in order to keep sufficient skilled
manpower at work in U. S. ship
yards lor an emergency defense
base.
While these plans are being
worked out, he said, "I am optim
istic (about the present) to this
extent: That I believe we have in
hand a potential year of activity
that could well mark the largest
peacetime shipbuilding program
yet experienced."
25 Bonneville
Employes to
Get Discharge
PORTLAND OP Twenty-five
more employes have been given
discharge notices by the Bonneville
Fower Administration the agency
reported Tuesday. This makes a
total of some 625 employes who
have been discharged since the
Eisenhower Administration took
office a spokesman said.
The latest personnel reduction
was made because of diminishing
work loads in land buying activities
and power marketing Personnel
Director Bob Williams said. That
is because no new dam building
is going on and no new starts are
planned in the near future he said,,
The latest discharges will be
effective July 1. Williams said a
further review will be necessary
when next year's Bonneville
appropriations are made by
Congress to determine whether
further personnel reductions wall
be necessary.
Bonneville currently employs
2695 persons.
Cash $25.00 weekly
Jackpot Drawing Every
Thursday, 4 p.m.
First Drawing May 20th
Kly's Corner Serv. Sta.
I 3300 N. River Road
TODAY!
COM FIAJGS WAPATl
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Rpck HUDSON Barbara RUSH
fregz PALMER Joe SAWYER
m- 'f ' ,
Free Parking Available
"m. a i f1 n fMtL t' 'T fir- d Di ' X
.ym a ,,. 1, -r .$ ip ; j i t'tTi f -
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PEABODY, Mass. Flood waters
meters in downtown section of Peabody, Mass., after a dam west
of the city burst. The dam gave way following nearly two weeks
of rain topped by a record 54 inch fall earlier in the day. About
mile of the center section of the city of 23,000 was flooded with
damage expected to be in the millions. No loss of life was report
ed. (AP Wirephoto)
Cattlemen
Favor Meat
Inspection
BAKER 0T) A committee of
the Oregon Cattlemen's Assn.
Tuesday recommended that the
association go on record as being
in favor "'of the principle of
adequate meat inspection."
The committee report will come
before the convention Thursday.
A report from the association's
legislative committee called for
the cattlemen to join in initiating
a constitutional amendment which
would give Eastern Oregon more
representation ' in the state Legis
lature. Other committee reports:
Called for more market news
and information.
Scheduled the association's
annual bull sales for Baker Sept.
27 and Ontario Feb. 11 and 12.
Called for appointaient of a
special committee to study meth
ods of raising money to finance
a beef consumption advertising
program.
TRADE PACT
VIENNA (INS) Austria and
Communist-ruled Romania recent
ly signed a trade agreement which
provides for exchange of goods
worth around 14 million dollars.
)) Largest and Finest Floor Show in Oregon (
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Two Big Technicolor Hits
Outlawed by the town he
tried to tare ... He faced
the screaming fury of the
Apache warpath alone!
in m 4
V : HUNTED...
V HOUNDED.
1 ' A PURSUED!
roll past nearly-submerged parking
Solons Clear
Cougar Dam
WASHINGTON OP The measure,
to authorize partnership construc
tion of the Cougar Dam in Oregon
won clearance from the House
Rules Committee Tuesday.
The committee authorized an
hour's debate on the floor for the
bill, but no date has been set for
the debate.
The measure would authorize the
city of Eugene to pay for power
features of the Cougar Dam on
the McKenzie River with the
federal government constructing
the main part of the dam as a
flood control measure.
Crystal Gardens
Salem. Orecon
Old Time & Modern
The most fascinating lady
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time!
TUtNS IT ON
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RITA
HAYWORTH
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FERRER
Tonight
Tr
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Mill Owners
Present Offer
PORTLAND Off Employers
Tuesday submitted in writing to
CIO Woodworkers their offer to
renew the present contract without
a wage increase. The union
promptly rejected the offer.
The written offer had been
asked by the union's negotiators,
who contended that until now
there had been no written state
ment of the employers' position.
The union, which has postponed
indefinitely a May 3 strike dead
line, had asked ia earlier negotia
tions for a 12 4-cent hourly wage
increase, a third week of paid
vacation and a company-financed
job analysis program.
Tuesday's meeting was held
under the auspices of the Federal
Mediation Service. The union will
meet with negotiators of the huge
Weyerhaeuser Timber Co. Wednes
day and on Thursday will hold
talks in Klamath Falls with pine
industry employers.
Walkout in
Honduras
Idles 50,000
TEGL'CIAGALPA, Honduras (JFi
Nearly 50.000 persons were re
ported idle Tuesday in a 19-day-old
general strike on the Honduran
north coast.
The strike for a 50 per cent wage
increase began April 30 against the
United Fruit Co. and later spread
to the Standard Fruit Co. factor
ies, breweries, logging and" mining
firms. Banana production is the
biggest operation in the area nor
mally, and produces most of Hon
duras' foreign exchange.
Food was running short in the
strike zone and disorders were
feared.
A purple flame may be produc
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on a fire.
Make
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DRIVE-IM THEATRE
Now!
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Gate Open 6:45
Bring the Whole Family
See a movie from your car
IN TECHNICOLOR!
ALAN
LADD
lEOGLEIIII
in
a
PARATROOPER
2nd BIG HIT!
The Theaters
Tonight
CAPITOL
"River of N Return" trfth
Marilyn Monroe; Slnt"l Girl
Friday."
ELSL.NO RE
"Ma and Pa Kettle at Heme;"
"Tara, Son of Cochise."
GRAND
lii Sadie Thompson" With
Rita Hayworth; "Tumbleweed"
with Audie Murphy.
HOLLYWOOD
"Money From Home" with Dean
Martin and Jerry Lewis; "Sky
Command" with Dan Duryea.
N. SALEM DRIVE-I.V
-ParatroopecT with Alan Ladd:
"Riot in Cell Block 11."
CORN NEEDS
OMAHA (INS) At least 16
different chemical elements are
needed to produce vorn that
yields 100 bushels per acre. Be
sides such basic fertilizers as
nitrogen, phosphorus and potash,
one acre of corn needs thousands
cf pounds of oxygen and five mil
lion pounds of water.
Open C:45
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MAM jvtxr
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fc K Intuit fcy
Z DAMON RONTON
EiONEf'
: FRDrtllfDilfE
Co-Hit
'Sky Command'
Starring
DAN DURYEA
oing to
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in thaws Ejti f
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MIMW1T ttfi
Show at Dusk!