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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 9, 1955)
Stock Market Probe Can't Hold Candle to Investigation in '30s i By LYLE C WILSON United Press Staff Correspondent WASHINGTON (UP) The old timer will lay you any odds that the Senate's new investigation of Wall Street will be small beer com pared to the one he reported back in the early '30s when that midget gat on J. P. Morgan's -knee. "Other people's money" was the Reds Blamed For Attacks On Witnesses . WASHINGTON (UP) Asst. Atty. Gen. William F. Tompkins said Tuesday the "current attack" on government witnesses and FBI in formants is part of a "Communist effort" to hamstring the govern ment's campaign against subver sives. , - Tompkins made the assertion as he appeared before a Senate Gov .eenment Operations Committee studying a proposal to establish a bipartisan commission to review the administration's controversial security program. "It is becoming increasingly elear," Tompkins said, "that the current attack aeainst government witnesses and informants of the FRT has it roots in a Communist effort to stem the successful cam paign of this government to elim inate the subversive threat of Com munism to our internal security." Turnabout Witnesses "It has as its objective the ham stringing of the FBI's informant system," Tompkins said. The : Justice - Department official - did not specify what he meant about the "current attack." He may have referred to the criticism that has been directed at his de partment and other government agencies for having relied on such turnabout witnesses as Harvey Matusow, Marie Natvig and others whose credibility has since been brought -into question. ; Tompkins also criticized those who contend that government em ployes accused of disloyalty should have the-right to face and cross- examine their secret accusers. Cite Ladejinsky Case - ' He said there would be "no more effective way" of "hamstringing" the " government's security system "than through the demand for con frontation of witnesses in non-crim inal matters." ; Senators questioned him about the case of Wolf Ladejinsky, agri- . cultural expert found a security risk by the Agriculture Depart ment but cleared and hired by the Foreign Operations Administra tion. '! Sen. Hubert H. Humphrey (D Minn), subcommittee chairman. complained of the apparent lack of - coordination between government departments, as exemplified in this case. i Humphrey charged in advance of the hearing that the changes which the administration announced n. in security- procedures last week did not go far enough, i V' Strong U.S. Best Answer' To CD Plans WASHINGTON GFI i Secretary of Defense Wilson said Tuesday he thinks the best answer to civtt de fense problems is for the United States "to be so strong that no enemy dare to attack."; ! Wilson gave that sumup at a news conference where he was peppered with a series: of specul tive questions such as whether martial law would be required in event of atomic attack. He said some kind of "local martial law" might be needed at target centers. The civil defense people, Wilson commented, "are struggling with a very difficult vproblem" which keeps changing. In answer to questions Wilson also said: I 1. He does not believe the Chi nese ' Communist have j the capa bilit yto invade' Formosa success fully but he would not want to underestimate them. "The Asian peoples have vays of doing things that are unpredictable," he said. 2. If the Communists should take the offshore islands of Matsu and Quemoy it would handicap the de fense of Formosa but "in the long run would not make too much dif ference in the result.? 3. As if ar as we know the Rus sians up to now have produced no test hydrogen explosions "of the magnitude" of those tested by the United States. I 4. In overall progress in the atomic weapons field I personal ly do not believe they: are nearly as far along as our country is. 5. He was asked about reports that the March 1, 1954, test at Bikini involved use of a hydrogen bomb with raw uranium to boost its power. His answer was that "the super bomb was bad enough and I don't think we gain any thing in talking about it. Mills Report Log Shortages CORVALLIS Some state sawmills operated short x shifts last week because of a log short age, according to the weekly Ore gon Sate College forest products report. ) Sawlog prices generally were un changed throughout the week, but some peeler log price increases were reported. name of the hit show which ran in the spacious Senate Caucus Room for nearly 24 months in the depression years of 1932-33-34. Other people's money, and what a whole fraternity of bankers and capitalists could do with" it for themselves and to the suckers who put it up!. I These congressional investiga tions of Wall Street seem to run in 20 year cycles. The Pujo Com mittee of the House of Represen tatives had a shot at it in 1904-14, just before World War I. J. P. Morgan, the elder, himself, was summoned before that committee and a host of his fellow financiers from New York. But the Pujo in vestigators handled their witnesses gently, compared to the procedure in the early '30s, and by contrast achieved nothing toward reform of the financial world. May Find Shady Deals Today's bearings may, of course, turn up some bad practices and ob tain some reforms. The questions before the : Senate Investigating Subcommittee chaired by Sen. J. William Fulbright (D-Ark) amount to this: Are currently high prices for stocks phony or legitimate? If they are phony, did the stock mar kets, the brokers and such lure a public of suckers into bidding them up beyond their true worth? Those are fair questions to which Fulbright probably will get an an swer. But it is not likely that the man from Arkansas will turn up any nuggets of personal and insti- tutional skulduggery, portentil per jury and eye-popping, if legal. avoidance of income taxes such as graced the record of the inquiry back there 20 years ago. Then, with "uncle Dune" Fletcher dozing in the chairman's spot, a rentless Ferd Pecora rifled embarrassing questions at the nation's financial greats. Fulbright says his is a friendly investigation of Wall Street. That is not the way Pecora Qia u. Pecora's Toothy Approach Pecora was an assistant district attorney in New York when Sen. Duncan U. Fletcher (D-Fla) chose him to carry on an investigation which almost had collapsed under pressure of the financial commu nity. Pecora went on to become Justice Ferdinand Pecora of the New York County Supreme Court. He resigned in 1950 to run unsuc cessfully for mayor. He's now a private attorney. But back there in 1 1933, Pecora gladly took the commitee job for $320 a month, assembled a crew of investigators and went to work. The public gasped when J. P. Morgan, the younger, testified that he had paid no income tax in 1930-' 31-32. Perfectly legal, of course, but a shock to the public. Neither did some of his partners in the world's greatest private bank have to ante up that way. People were stunned when former President Collidge's name appeared on a list of beneficiaries of unethical "sure thing" stocks. . Another Shockers Another shocker was the resig nation of Charles E. Mitchell as president of the National City Bank after a dav or so of Pecora's barbed questions. Down, too, came Albert H. , Wiggin, the absolute Czar of the nation's other "biggest bank, the Chase National The Chase was a Rockefeller bank. Winthrop W. Aldrich, of that clan, had been general counsel un til Wiggin's practices were dis closed. It was Aldrich who waved Wiggin out, succeeded him and re pudiated the bad basic banking practices of the pre-depression years which had helped bring cal amity to the nation. Aldrich con tinued to head the Chase until sent to London as ambassador by President Eisenhower. Fulbright is both chairman and prosecuting counsel of the investi gation now under way. Other com mittee members occasionally chime in. To some with long mem ories it is a fair question whether Fulbright or any Senator can find the time to do the ' all-or-half-the- night homework which Pecora reg ularly took on to be prepared for his witnesses on the morrow. Boeins Plane Firm Income, Sales Hit Peak SEATTLE m The Boeing Air plane Co. hit an all-time high for sales jind income in 1954, Pres. William M. Allen reported Tues day. Allen disclosed also that the company placed orders amount ing to $45 million With subcon tractors and inventory suppliers in the state of Washington during the year. City, county and state taxes for the Seattle and Renton plants, he saidV approximated $3,600,000. Allen said total sales for the year were $1,033,176,265 up near ly $115 million. It was the first time sales had hit the billion dollar total. Net earnings after taxes of $39.- 750,000 were reported as $36,976 023. This amounted to $11.39 Der share of Boeing stock. The earn ings eclipsed the 1933 amount by more than $16 million. Total employment including the Wichita plant, averaged 65.054 -for the year. Wages and salaries were $300,244,415, of which more than $173,900,000 went to workers in the Seattle and Renton plants. Em ployment at Seattle and Renton now is about 37,300. IN FULL COLOR? . SACRAMENTO, Calif. JP) Future foresters may carry hy podermic needles. Leslie J. Carr, head of a fo;estTproducts research laboratory, says tree studies are progressing so rapidly that wood eventually may grown naturally stained in decorator color. 70th Lap Nearly Fatal to Race Driver "" FRESNO, Calif. Earl Motter, Ilayward, Calif., driver, paws the air during the 70th lap on the 100 lap AAA midget championship race. Zooming past Motter is Johnny Boyd of Fresno. Motter suffered a cerebral concussion. Race was won by Bullet Joe Carson. (AP Wirephoto) J Sivedisli Venus9 Cast in Role Of Refugee, Beauty Covered By JAMES BACON HOLLYWOOD UP) Anita Ek berg has the kind of figure Mari lyn Monroe could envy but you'll never see it in "Blood Alley," her first movie. By that peculiar twist of Holly wood logic, the onetime "Miss Sweden" winds up looking more like a man than a woman in this picture. The blonde, blue-eyed Swedish Venus is cast in the picture as a young Chinese girl fleeing the Reds. -Her lovely skin was dark ened with grease paint, her blonde hair covered with an ugly black wig and her famed figure (39-mch bust) completely hidden with ill fitting rags. And if that wasn t enough, Di rector Bill Wellman made her car ry a baby, papoose-style, on her back and a machine gun on her chest throughout most of the pic ture. Her first day on the set, a crew- Petition for Review of Gas Decision Filed PHILADELPHIA -(UP) The third circuit court of appeals Tues day took ! under advisement z motion to ' dismiss a petition for review of a Federal Power Com mission decision granting Pacific Northwest Pipeline Corporation permission to serve the Northwest with natural gas. The petition for a review of the decision was filed by Trans-North west Gas., Inc., Spokane, one of two firms which lost a bid for the franchise granted Pacific North west. The court gave no indication when it will rule on Pacific North west's motion to dismiss the pe tition. Trans-Northwest claims the FPC erred in granting Pacific North west permission to pipe gas into the northwest from New Mexico and Colorado. The third applicant Westcoast Transmission Com pany also had filed a petition for review but withdrew it after sign ing an agreement with Pacific Northwest for the sale of gas to the winning firm at the Canada- United States boundary. Voyle Smith, 64, Succumbs Voyle'A. Smith, 64, former Salem furniture and car upholsterer, died Monday night at his Salem Route 3 home in the Rosedale commun ity where he had lived since his 1942 retirement. He had been in ill health for some time. Born September 4, 1890 in South Dakota, Smith moved to Oregon with his parents from Aberdeen, S. D. He had worked at the state high way department shops and Stiffs Furniture Store. Besides his wife, the former Anna Barnes of Salem, he leaves a daughter, Mrs. Barbara Sanders, and son, Clive Smith, both of Sa lem; sisters Mrs. Vella Hays and Mrs. Vesta Schwab, both of Seattle Services will be 1:30 p.m. Thurs day at the Howell-Edwards Funeral Home "where the Rev. Frank N. Haskins will officiate. Burial will be at City View Cemetery. RUPTURED? ... FOR SECURITY AND COMFORT Wear a DOBBS TRUSS BULB LESS EELTLESS STRAPLESS scmrrmcAiAY rrrro ko obligations - ASOBBS i TSUSS sal Hka tha hast SAJOTAaT. eaa ba wtas wUta littiBi. Dm sat trat ffc. rastaia. It haMa witfc cwm pa. nm Bat laca a aala a kaS hi aaaaimc af raatora. that bacafe tha liaiu iffW ayart, Sln(cl Double H2JSO Men, Women, Children 17.50 So matter what truss yon now wear, yoa owe It to yonrself to come see the DOBBS TRUSS " CAPITAL DRUG STORE 405 State SL Corner of Liberty - '' WE GIVE Z.-9C GREEN STAMPS . i - Y 's . Jf - man accidentally pushed her. He took one look at her and said Pardon me, Mac." He probably still thinks he brushed against a man. 'Melted Icecap' It s hard to believe that it was the same girl who almost melted the polar icecap when Bob Hope took her along with his troupe to entertain airmen at the remote Thule base in Greenland. William Holden, who also went along on that "New Year's Eve junket, recalls that he had never seen any girl get the reception this one did. "I have heard GI's whistle and stomp their feet at curvy starlets but nothing like this," Holden re calls. "When Anita walked out on the stage in a tight-fitting sweater: These men didn't whistle, they just moaned. It took six minutes for the commotion to die down. "Finally one airman yelled out What's her name?" but another voice from the other end of the hall yelled back 'Who the hell cares?' and the moaning was on again." Former Model The onetime model from Ma1- mo, Sweden, isn't the least bit per turbed about her de-glamorization for "Blood Alley." "I prefer that my first movie role give me a chance to prove I can act. If I can do that, I II et the physical assets take care of themselves Beauty?" she expounds, "is not enough for success as an actress Her most pressing problem at the moment is language. "I am just learning to speak good English with a Swedish ac cent and now Mr. Wellman wants me to speak it with a Chinese accent." Ned Washington, the lyricist of The High And The Mighty," is up for his fourth Academy Award with that song. Yet, of six brothers and sisters in his family, he is the only one who never had a musical educa tion. "And I wind up being the only one to make his living with mu sic," he laughs. Washington got into song writing when he was 12 years old in his native Scranton, Pa. , "I just wanted to write songs," he recalls. "I used to write poems under fictitious names and send them in to the Scranton newspa pers. It was a great thrill when they published them. ( i But why the fictitious name? "If you know Scranton, no boy who' ever wrote poetry could last long in that town. I would have been murdered in my neighbor hood." Universal City, a Southern Cali fornia township that is legally in corporated, has officially closed its borders to Russian nationals. The city i has one of the world's most glamorous populations by day and dnly one resident Fran cis the mule at night. It is the site of Universal-International Stu dios. Its town council declared the city off limits to Russians by a unanimous vote this week. Actress Mamie van Doren, coun cil secretary and honorary chief of police, inscribed the edict into the township charter. "Why," exclaimed the blonde Mamie, "those Russians would ap propriate anything and claim it as their 6wn. We've got one thing they're not going to steal our I talent" : .1 v as Us midget racing car catapults Puget Sound Grain Storage Plans Halted SEATTLE UFt Faced with cost figures which he said coulda't be ignored. Rep. Pelly (R Wash) threw in the towel Tuesday in his battle for -having some of Ameri ca's surplus grain stored in hulls anchored in Puget Sound instead of in Oregon. Pelly told the Post-Intelligencer he had been advised by govern ment officials that it would cost 10 per cent more to store the 450,000 tons of gram in 75 ships in Olym piad Budd Inlet than in Oregon's Cathlamet Bay. Loading the 75 ships with 6,000 tons of grain each and dredging Cathlamet Bay would cost $3,669, 475, Pelly said he was told, while it would cost $4,048,275 to load the ships at Astoria and tow them to Budd Inlet. (All Liberty ships to be used in the program now are at Astoria in the reserve fleet.). "We've got to face up to facts." Pelly said. "If these figures are correct and there are no uncon sidered factors, we are committed to accept the most economical loading method." Pelly and Oregon's congressional delegation have been at odds on the matter for several weeks. You the mm not mm Mm planned to do put on a set of NOW and have the peace of satisfaction of owning the best! Fe inn 710 STATE - Oregon Solons Blamed for Power Action WASHINGTON (UP) Rep. Harris Ellsworth; (R-Ore.) ac cused Oregon's two Democratic senators Tuesday of injecting pol itics into the development of North west power resources. . He called it "mean and tragic" and said their activities may tor pedo two proposed flood control and power dams in the Willam ette basin the ' Cougar and the Green Peter. In his weekly newsletter to pa pers published in his district, Ells worth lashed out at Sens. Wayne L. Morse and Richard L. Neuberg er for what he called their "re actionary view" on power. He said the senators, in reject ing the administration's plan for a partnership between government and private interests in developing power projects, have been "very vocal tn contending it, must be done by the federal ' government or not at all. J j ; j "This was the theme of the early new deal days. . .of the late Harold Ickes," he said. "Present day lead ers of the Democratic party have abandoned that idea as being out of step with the needs and con ditions of our times." ! Ellsworth said such projects as the McNary, Coulee, The Dalles and Chief Joseph dams l were al ways "kept out of politics" but Morse and Neuberger are now charging off in the opposite di rection. He said their injection of parti san politics may block approval of his bill for construction of the Cougar and Green Peter dams on a strict "partnership" or "local participation" basis. Noting that three million dol lars has been budgeted for the two projects if Congress approves of the "local participation" fea ture, Ellsworth said they are sore ly needed for flood control on the McKenzie and Santiam rivers. Hoffman Named to Education Post PORTLAND UD Dr. Phillin G. Hoffman has been oromoted from vice dean to dean of the Extension Division of the state sys tem ot nigner education. He succeeds Dr. J. F. Kramer. who was appointed first president of Portland State College Monday by the State Board of Higher Edu cation. Both appointments become effective when the law establish ing Portland State as a four-year college goes into effect. As dean, Doctor Hoffman will direct the education of nearly 10,- 000 students enrolled m centers throughout the state and in cor respondence courses. He will make his headquarters in Portland. ; i 000 fDiiyV Hi Drf can't afford NOT to have the best i interest of safety You can afford to buy the best by using one of the following easy-pay p I a n s. Whatever your problem, we have the plan to fit your needs. Budget Term Plan Farm Pay Plan j Executive Plan Up to One Year to Pay No Interest or Carrying do what you've SERVICE INC. ACROSS FROM Stafesiriarv Salem, Oregon, Wed., Oregon Wool Production Up PORTLAND un Oregon's 1954 wool clip totaled 5,758.000 pounds, 3 per cent more than in 1953, and the largest since 1948, the U.S. Department of Agriculture has re ported, i This production came from 647, 000 sheep, with an averager fleece weight of 1.9 pounds. Growers averaged 53 cents a pound, com pared with 55 cents in 1953. Dedication of New Freeway Planned VANCOUVER. Washi Dedi cation ceremonies have been set for March 31 for Vancouver's $7, 000,000 freeway. The freeway was designed to speed Highway 99 traffic through the1 city. It extends from the Inter state1 Bridge to a point just north of the City limits, and will handle traffic that formerly crawled through two-lane streets. Governors Patterson and Lang- lie of Washington and Oregon, and mayors of nearby cities have been invited to the ceremonies, i WHOA THERE, PARTNER PALESTINE, Tex. VP) They caught a horse thief here recent ly and even back when hanging on the spot was the penalty, the culprit probably would have got off with a good spanking. He was just 7, and took the broncho for a spell of riding the range. . Want Ad Answered M bu Brother Put it' Be Aldo Ray In Films FOOTBALL' PLAYERS lo- tarvatad in movia tola Bcly at aiit Hotel today ba- 4 As a yostk scrsea star Aldo Ray started oa a political career. It abraptly ended when he drove his brother, Guido, to ;Saa Francisco to answer a Classified Ad : seeking football players for; bit parts in "SatsrdaV's Hero. Although he sad not applied, Aldo waa se lected for a rols against his willl j Want Ads Are'! Destiny's Doors 5 4? i IH4- - IS t Cm mmim ilalt j"" fts4 Asasajssjw saaajs) Sftasv ana riri r Ui, NV It, Bfa 47. fk. .VWTTI'lf W e WW VW4SVhW TT Ml I 1 lilSf r SMS I m i If For Proven Results It's Statesman-Journal Want Ads. National Want-Ad Week March 6 to 12 To Place Ads Call 4-6811 for your family. ' Charge always Generals mind and em ELKS CLUB - eral Tire ii: ' ; March 9, 1955-Sc. 2)-3 Truck Dives Into 150-Foot Canyon, Two Men Injured REDMOND tf Two Cali. fornians, drivers of a convoy truck laden with army trailers, wen hurt early Tuesday when theii truck plunged over a 150-foot grade in twisting Cow Canyon, north of here. They are Jack Smith of Rich mond and Archie Ellis of Sunny vale, Smith, who was at the wheel, was reported to be in critical con dition with both legs and his pelvis fractured. Ellis, relief driver who was asleep, was thrown clear. An arm was broken and he suffered superficial injuries. Both men wer brought to the hospital here. Union Protests : Labor Council's Proposal for OTI : KLAMATH FALLS (UP) The Klamath Falls Central Labor .. Council has sent a letter of pro -test to the Portland Labor Council about a recommendation that Ore- ' , gon Technical Institute . here b abolished to help trim the state's budget. President C D. Long told the Portland group that OTI provides ' technical training in several fields offered nowhere else in the state. He said shutting off school funds was no more justified than deny ing funds to law schools, medical schools or teachers colleges. Tndt Mvft in OPEN FRI. TIL 9 -7 mm MA itiiiiiii 'in y' the A I tEIUEOALu , TIQE J ) I