Image provided by: University of Oregon Libraries; Eugene, OR
About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (March 15, 1955)
NewBry Fights Motei .Bureau 104th YEAR Stocks Tumble Again; Solon Hints Senate Probe WASHINGTON Ifl Sen. Gold water (R-Ariz) said Monday there could be a direct connection be tween the Senate Banking Com mittee's study of the stock market and Monday's major selling wave. -The day's fall in prices was the biggest to hit the New York Stock Exchange in nearly five years. Goldwater told , the Senate he "wouldn't want to say" that the estimated four billion dollar ag 'Generous Accepts Checks; Bank Folds r By KYLE VANCE j 1 WHITES VILLE, Ky. (JP) A federal bank liquidator, investigat ing the collapse of a small town bank, disclosed Monday that U ob ligingly cashed more than 2,000 worthless checks. The checks, varying in size from $1 to $7,000, caused a shortage of $535,000. This was more than half, the deposits in the Banks of Whites- r Wednesday evening a hearing will be held by a subcommittee of the joint ways and means committee in Room 309, the Capitol, on HB 99 which would require inspection of all meat slaughtered and offered for hu man consumption. The bill pre viously was approved in the com mittee on agriculture but was referred to the ways and means committee because of the cost factor. That consideration, how ever, should not be used to kill off the measure. - Oregon Is sadly delinquent In providing proper inspection of meat Of the 155 licensed slaugh terhouses in the state only 30 have either federal or city in spection. The remaining 125 do sot have it The state has been very progressive as regards milk inspection. Strict standards are enforced as to herds, milkhouses, handling from farm to doorstep. It has been laggard on inspection of meat. . The bill would require slaugh terhouses to met uniform stand ards of construction and sanita tion. It would require inspec tion by personnel from the State Department of Agriculture of all cattle, sheep, goats and swine, before and after slaughter, to be offered for human consumption, except in plants which are under federal inspection. Farmers may slaughter for their own consump tion but if their meat is to be sold it must be submitted for inspection. Having supported this legisla tion for many years I want to renew my endorsement in con nection with HB 99. Where there is jio (Continued on editorial page, 4.) City Councilmen Delay Action on fNew' Business i Salem councilmen decided some new business was definitely old business and left it as unfinished business at the tail end of a busy Council ag nda Monday night i They advised Edward C. Kru ger, 1415 N. 4th St, to confer with Water Department Manager John Geren on his complaint against the city for cutting off a water line to his. property after learning that the water depart- 1 ment's action took place in either 1946 or 1947. Phone Cables Cut Following Strike ATLANTA (J) Six telephone cables were reported cut or dam aged in Alabama and Georgia Monday night only a few hours after Southern Bell Telephone op erators and other workers in rune states struck in a union contract dispute. Union officials promptly denied any knowledge of the incidents. ANIMAL CRACKERS V WANRfN 6000RICH "Oh, stop being such a gentlemaa 2 SECTIONS-14 PAGES gregate drop in the prices of all listed securities was a "direct re sult"; of the study undertaken by the committee. . But he told the Senate in some times warm debate that "when a dark cloud passes over, sometimes there is rain." Sen. Gore (D-Tenn) asked Gold water if he meant to imply that the committee, - headed by Sen. Fulbright (D-Ark) "is deliberately Cashier' 2,000 Bad iville, which closed last Septem- ber. The deposits totaled $929,625 And how were the customers. over a period of four years, able to get money on so many checks when they didn't have sufficient funds on deposit? Takes Full Blame Bernard Ware Barrett the 51 year-old cashier, took full blame. "I had a habit of indulging our customers," he explained when the bank closed. "I thought they (the checks) would be made good, but they weren't.' Barrett added he didn't realize the checks he was holding had piled up to such a fantastic sum. Altogether,. 135 accounts were over drawn. , One customer overdrew his ac count by $168,701. Another took out $139,613 which he didn't have on deposit. False Entries Barrett is charged with misap plying bank funds and with mak ing false entries, but he has been declared temporarily unfit mental ly to stand trial. He said he did not profit from being so generous. The inore than 2.000 worthless checks' were r reported by John Slocum, liquidator for the Fed eral Deposit ' Insurance Corp., as he and state and private banking officials tried to untangle the gi ant overdraft What about the persons who wrote the checks in this commu nity of 750? - Prosecution Starts Machinery has been set in mo tion to recover the money and to prosecute other persons. Criminal indictments have been returned and civil suits have been filed against the two customers most deeply involved. L.E. Owen, an oil operator, is charged with writing 1,185 checks which left him with an overdraft of $168,701 J.D. Logsdon, a lumberman and dome builder, is accused of cre ating two overdrafts one involv ing 577 checks and $159,613 against his business and one involving 565 checks and $74,704 against him self. Business Bills Most of the Owen and Logsdon checks were payments of business bills. Slocum said numerous smaller delinquents were voluntarily set tling their shortages. The courts will get the cases of others. Logsdon testified at a recent ex amining trial he had only a fifth grade education and was not aware of any indebtedness, Owen has made no public stated ment. Dave Brodie, an attorney for the FDIC. said the shortages general ly were covered up by hiding many good accounts from the ex aminers. The money deposited in them was used to cover the bad checks.. Russian Shoots His Way Into British Embassy in Moscow By STANLEY JOHNSON MOSCOW it) A fur-hatted young Russian wouaded a Soviet guard at the British Embassy Sun day night with pistol fire and, spouting gibberish, forced his way inside. Two unarmed British At taches captured him there. They turned him over to Soviet police. The intruder, a well dressed man of about 23, was subdued in the second-floor living quarters of Ambassador Sir William and Lady Hayter. They returned from a skiing trip in the country just as he was being taken away. Moscow diplomatic observers were inclined to attach no politi cal significance to the incident They dismissed it as the individ ual action of a person presumably mentally disturbed. The gunman's identity has not been disclosed. He appeared at 6:15 p.m. at the high iron gates of the embassy court yard, in the center of the capital just across the - Moscow River from the Kremlin. There he whipped out a pistol and blasted the guard in the chest Then he ran 30 yards to the front POUNDOD 1651 Tho Ortgon Statesman, Salem, Oregon, Tuesday, March 15, 1955 to Bla trying to undermine" the stock market. Goldwater said: "I am merely offering that as a suggestion." The exchange followed an asser tion by Gore that a dividend tax credit voted into last year's tax revision act had certainly aided the bull market of the past two years. Goldwater asked Gore if the market had "boomed" since the Banking Committee study began two weeks ago. Goldwater said he market had ."boomed off seven billion dollars" in recent days. Sen. Lehman (D, Lib-NY) said there was "no assurance that there has been a loss of capital of that amount" and that the mar ket could bounce right back up again. That was Lehman s answer to Goldwater's assertion that the re cent decline injstock prices was hitting the pocketbooks of stock owners. Gore said if the underlying sta bility of stock prices was so flim sy that the Banking Committee's study all by itself could have set off Goldwater's estimate of a seven-billion dollar drop, then the seven billions were "synthetic val ues." (Additional details on page 3, sec. 2.) Legal Delays Free Provoo in Treason Trial BALTIMORE to John David Provoo, facing a second trial on wartime treason charges, was set free Monday by a federal judge who ruled the 37-year-old former Army sergeant had been denied his constitutional rights to i speedy trial. Judge Roszel C. Thomsen dis missed the treason indictment and granted the onetime San Francisco bant? clerk his freedom in a 33-page opinion climaxing more than a month of hearings and deliberation. Provoo was overcome as his lawyers broke the news to him in the office of the U.S. marshal "1 am very grateful " was all he could say. Judge Thomsen said he found Provoo could not "have a fair tri al at this -late date, that he has been denied the right of speedy trial within the meaning of the Sixth Amendment," and that there have been unnecessary and "de liberate" delays in indicting him and bringing him to trial. Provoo was convicted and sen tenced to life Feb. 11, 1953, in New York Federal Court on four counts of aiding the Japanese af ter the fall of Corregidor on the Philippines in early 1942. Possible Sale Of Restaurant Made Known Negotiations for purchase of The Spa restaurant at 382 State Street by Charles Barclay, city purchasing officer, . were con firmed Monday night by Barclay. Barclay said completion of the purchase from Joseph R. and Savilla Linton hinged on exten sion of the building lease beyond the present four-year contract Option to the building is held by the CL Corporation which owns most of the property in the block. . Barclay now operates The Broiler, cafeteria-type restaurant in the Candalaria Shopping Cen ter on S. Commercial Street shoved aside a British guard and vaulted up the broad stairs to the second floor. A Russian maid who, saw him said he was talking wildly. His words were incoherent and she couldn't make them out. He fled into the stately main dining room. Meanwhile the guards downstairs had called Third Secretary John A. L. Morgan, 25, and chancery guard Thomas Gray, 32. The ath letic pair rushed from their near by apartments, jumped the gun- waving intruder and forcibly dis armed him. Friends Monday were congratu lating Morgan aad Gray, neither of whom appeared any worse for the experience. Their strong builds had stood them in good stead in overpowering the intruder, of med ium height and husky. Like all foreign missions in Mos cow, the British embassy is heav ily guarded. Night and Day, two or more uniformed Russian police men, with, pistols at their belts, are posted at front and back gates in the high brick wall that sur rounds the grounds. Plainclothes police also are sta tioned outside, the gates when the Lebanon Woman Waits With Gun for Assailant J " 4 - ' --.' . -.. A ' ' LEBANON Mrs. E. A. Gall, whose 63-year-old husband was the sault, sits gun in hand peering through her curtain for the possible return of the assailant He Is thought to have been Dale Ivau Hetland, an ex-convict sought by police. Mrs. Gall, whose publicized disclosure of welfare abuses is believed to have led to her husband's beating, conferred Monday with Attorney General Robert Y.Thornton and will meet Wednesday with the Senate subcommittee on welfare. Effort to Raise Phone; Franchise Rate Beaten By THOMAS G, WRIGHT, Jr - --" Staff Writer, The Statesman The mayor's wing of the City Council beat down a final effort to boost the franchise rate for Pacific Telephone and Telegraph Co. operations in Salem Monday night, approving 6-3 a city ordinance continuing the franchise at its old 2 per cent rate. Aldermen Preston Hale, Clayton Jones and David O'Hara joined in an attempt to boost the rate to 2.4 per cent when the ordinance came up for second reading. Ear lier attempts by the trio along with Alderman Walter White to set the rate of 2.5 per cent and to cut the 20-year contract to 10 years were also overridden with the offering of an amended fran chise. On Short End Mayor Robert F. White was on the short' :.nd of another vote, this one affirming the Council majority's sentiment to junk- the policy of previous council's on new parking restrictions. White was joined by Alderman Edward Roth in opposition to a resolution spotting parking restrictions of one hour in front of two business houses in "400 block of State Street. Past policy of the Council had been n vote parking meters where parking restrictions had been requested. , The Counc . got some unexpect ed reaction from residents of a two-block area of Rural Avenue east , of the South Salem High School by tht approval of resolu tions calling for sidewalk con struction. To Consult Alderman " Several residents of the area, with Roy L. Vick acting as spokes man, questkned the Council's ac tion in starting the sidewalk pro cedure with rat what they called proper contact of affected prop erty owners. The group Was ad vised the action, requested by the Salem School Board, could still be blocked and members agreed to consult their alderman. Resolutions calling for con struction of the sidewalk on the north side of Rural between Ray nor and Yew Streets, and High and Church Streets were adopted by the Council before the pro tests were raised. (Additional details on page 2, sec. 1.) MENZIES, IKE CONFER WASHINGTON () - President Eisenhower and Australian Prime Minister Robert G. Menzies dis- cussed problems of mutual interest at an hour-long White House con ference Monday Mix. Mtn. Precip. Salem 47 M .11 Portland 45 33 JO Baker 33 18 .00 Medford 44 30 .03 North Bend 46 33 ' .29 San Francisco 56 38 .00 Los Angeles 67 52 .00 Chicago 68 34 .00 I New York 53 32 M Willamette River 3.1 feet. FORECAST (from U. S. weather bureau. IdcNarr field. Salem): Scattered clouds and warmer today and Wednesday. Low tonight 25 to 27. high today 53-55. high Wednesday 55-57. Temperature at 12:01 a.m. today waa 30. SALEM rRECIPITATlOX Since Start at Weather Year Sept. This Tear Last Year Normal PRICE 5c Mike Elliott Pleads Guilty To Forgery LOS ANGELES W Marion Leroy (Mike) Elliott, 35, Multno man County, Ore. (Portland) )sher rif who was recalled in 1930, pleaded guilty to forgery Monday. ; So did his wife. The two were accused of forging and passing two checks of $118 each and two of $36 each. The sentence and probation hear ing for the couple was scheduled for April 4. Elliott, who admitted he had lied about his college and war service record before he was elected, was recalled after serv ing several months as sheriff. DlnessCloses Canby Grade, High Schools CANBY m Canby grade and high schools were closed for the rest of the week Monday after 300 students failed to report because of illness most of them with flu. That was almost half of the total enrollment. ; Townsend to Shun Reporters, Awaits Decision LONDON VFh- Princess Marga - ret may not have given Group Capt. Peter Townsend her final de cision, but the impression . re mained in informed circles Mon day night she is all in favor of wedding bells this fall . v The 40-year-old war hero, air at tache at the .British Embassy in Brussels, complained Monday a London Sunday newspaper report implied "the princess has decided to marry me." . "The princess has made no such decision known to me, nor have I any reason to believe she has made a decision," Townsend said in a prepared statement London society circles all along have assumed that Townsend's transfer from London to the Brus sels post 16 months ago- and the princess's recent . Caribbean tour were designed at least in part to help her make up her mind. The current report is that she returned from the West Indies in tending to go ahead and marry him." The group captain is being gal lant,' as any English gentleman No. 353 victim of an apparent revenge as Nationalists Claim 10 Red - v Ships Sunk TAIPEI, Formosa W) Nation alist warplanes Monday scattered a Red flotilla in Amoy Bay, sink ing 10 small warships, the Defense Ministry asserted. Listed as sunk from a fleet of more than 50 warships were three 130-ton gunboats and seven armed motorized junks. : Whether this was an invasion fleet was not disclosed. If so, it probably was aimed at the Tan islets 2Vt miles south of Amoy rather than the heavily garrisoned Nationalist island of Quemoy. Quemoy, across the strait from Formosa, commands the bay's waters leading to Amoy, now a dead port. The Tan islets south of Quemoy are part of the stopper that corks up the port. The offshore island front sprang to life after a. two-day lull when patrol planes spotted the concen tration. 'Bis' A-Blast LAS VEGAS, Nev. W) The Atomic Energy Commission has scheduled for Tuesday a nuclear blast which may be the largest detonation of the spring test series thus far. - t , A weather conference Monday night determined that conditions probably would be favorable for the shot, slated to be set off at 5:15 a.m. ! by Margaret i stances, some people here were saying. They suggested he must leave the decision, and the an- nouncment of it, to the princess. His- statement Monday, it was presumed, was intended in part to clear up any misapprehension that he had said too much Tie divorced RAF ace was com menting on a report which quoted him as saying that he and "a cer tain lady would go into exile if circumstances demanded it. Townsend had denied saying that, but not before one London Sunday newspaper went to press with it under banner headlines. Townsend's statement Monday, as read to reporters by the British Embassy press attache in Brus sels, closed with the words "In view of -this statement again of course alleged to have been made by me as well as a number of other statements at? tributed to me, I shall now be forced to seek: escape from' re porters.' - ; ; ' Public opinion, as far as can be determined from the lively dis cussion going on in every county of Britain, is largely sympathetic Planned Today Transfer Pla By ROBERT E. GANGWARE City Editor, The Statesman Secretary of State Earl T. Newbry spoke out Monday against the bill vehicle department from "I can see no need or fer" (to the governor s office), declared Newbry who had been silent on the issue raised by an interim committee, recommendeil by the I governor and just now -coming under the. Senate highway com mittee's consideration, i' Newbry's opposition statement came on a legislative aay Ma tured also by these - develop ments: it. 1 Announcement that Mrs. E. A. Gall, Lebanon housewife who claims her husband was beat en last week because she has heen identifying fraudulent re cipients of public welfare, would be subpenaed, along with her records, for a ways and means subcommittee hearing:1 Wednes day afternoon. (Picture in col umn at left) j j Talks With Thornton 1 . Mrs. Gall came to Salem Mon day to confer with Atty. Gen. Robert Y. Thornton who prom ised any assistance needed by the Linn County district attorney in his investigationh ,of , . her charges, i ;' ' At the same time the welfare subcommittee told officials from many county welfare units that TUESDAY HEARINGS On teachers' minimum pay House education committee, following morning j adjourn ment, Boom 321. On equal pay for . women House labor committee, 2 p.m. in Room 6. j : legislation is being prepared to force deserting fatherso support their children as one j means of checking the welfare costs. 2 Legislative action was fin ished on the revised retirement system affecting 44,000 public employes in Oregon. The House passed the amended Senate Bill 47 without question and sent it to the governor. J ; Graduated Scale T 3 House tax committeemen decided to work out a graduated scale for withholding income' tax from wages, similar to.' .the fed eral plan, instead of going ahead with a plan to double the present 1 per cent withholding, ' Bills to regulate .milk price only at producer level and to divide Marion County '-into two districts for election of state rep resentatives were approved for presentation to the House as new bills today. The milk; bill would restore some of the controls which the voters tossed out i last November. Korea Bonus Debate 5 The House scheduled de bate for 10 a.m. today, on a Ko rean War veterans' bonus, which the ways and means committee has recommended against The Senate highway committee gave a close-check attention to technical details of setting up a separate motor vehicle .depart ment under the governor and de cided to go at this! bill again Wednesday. j Secretary of State Newbry didn't appear before the commit tee but he released copies of a letter he recently sabmitted to Highway Committee i Chairman Warren McMinimee L (R), Tilla mook. !; Doubts Greater Efficiency "I am not convinced that greater economy or ; efficiency " wrote Newbry, "can be obtained by the transfer of . the activity (motor vehicle) from one elec tive official to another." Newbry wrote that Legisla tures since 1905 have entrusted all motor vehicle administration to the secretary of state's office and that just about all improve ments in motor vehicle law over the years have been; recommend ed first by the secretary of state. Points to Progress I j . In this connection, Newbry said his contribution has includ ed the permanent license plate, staggering of renewals, regular school bus inspection, old timer plates, ham operator plates, pres ent title fee, continuous trip plan and reciprocity plan of truck reg istration- with other western states. i The long-predicted milk bill proposes a milk marketing ad ministrator appointed by the gov ernor, with powen to license milk dealers and set up either distributors-type ot marketing- type pools in which the produc ers wouia De guaranteed a mini mum price. - : Milk producers would have cer tain referendum powers. Public hearings would be mandatory be fore price orders could be issued. Bill sponsors are Reps. Joe Rog ers, Elmer Deetz, Earl Hill and Maurine Neuberger, Sens. Lee Ohmart and Monroe Sweetland. (Additional legislative news on page 2, sec. 1 and page 6, sec 2.) BODY RECOVERED KLAMATH FALLS (l The body of Joseph El wood Wright 19. Klamath Reservation Indian, was recovered from the Sprague River south of Chiloquin Sunday. He ap parently fell from a dam - where he had been fishing, and drowned to remove the state motor his jurisdiction. justification for the trans 3 School Girls Killed as Auto Jumps Curbing BUFFALO, N.Y. ffl Three girls on their way home from school were killed and two others were injured critically Monday when an automobile jumped onto a city sidewalk. , The car careened out of control for more than two blocks, veer ing on and off the sidewalk, unto it smashed through the brick wall of a building and came to rest inside a store at the northern edge of the city. A city traffic engineer estimated the car was traveling 70 miles an hour. Two of the dead were identified as Cynn Douglas, 11; Anita Arena, 6 and Sandra Jean Pavez, 11. Reported in critical condition at a hospital were Iris Ascanaby, 7, and Betty Scheuer, 11. The 'children were returning home from a public school about four blocks away. Martin McMahon, an ambulance driver, told The Associated Press: "Oh,- my God it was horrible. Their bodies were scattered all over, about 20 feet apart Police identified the driver as Emil Decina, 33, an employe of Bell Aircraft Corp. He was charged with criminal negligence in the op eration of a vehicle. Later, Decina was taken to a hospital for observation. District Attorney John Dwyer of Erie County quoted the man as savins he was subject to epileDtic at tacks. Mercury Hike w m Warmer weather is expected or today and Wednesday after Salem Monday morning experien ced what may have been the sec ond worst snow storm of the win ter. A two-hour snowfall 1 o o k e d good while it lasted, but the sun shine following cleaned it away by noon. More than a foot of snow was dumped in the Cascade mountains and the State Highway Commission warned motorists to carry chains into all upper regions and to use them in S?i tiam and Willamette asses. Snowfall at Government Camp was 12 inches, Timberline 15, Wil son River Summit 5, Sunset Sum mit 8, Warm Springs Junction 7, Santiam Pass 12, Willamette Pass 16, Meacham 8. Officials at the Marion Forks odge, 20 miles from the summit of the North Santiam Pass, said that 2Vi incues of new snow fell Monday morning, which measured with Sunday's fall and "old" snow totaled 3 feet It was announced that ski tows at the Hoodoo Bowl would oper ate daily this week and next The tows usually operate only on week ends. Herbert Hoover. To Visit Newberg On 81st Birthday Ex-President Herbert Hoover will accept the Oregon Legisla ture's invitation to spend his 81st birthday at his boyhood home in Newberg, Ore., next Aug. 10. - Hoover s letter of acceptance arrived here Monday afternoon. The Legislature had invited him in a joint resolution passed sever al weeks ago. On that day, Hoover s boyhood home will be dedicated as a pub lic shrine, and a city park will be named after him. RAIL WORKERS STRIKE LOUISVILLE, Ky. An es timated 25,000 non-operating em ployes of the Louisville fc Nash ville Railroad and two subsidiaries went on strike Monday, and 15 passenger trams - were cancelled by night fall. Today's Statesman Expected After Sc. Pag Classifieds II 4, 5 Comics I 6 Crossword J II .... 3 Editorials -I 4 Legislative II 6 Markets II 3 Sports II 1, 2 Star Gaxer l. 7 TV, Radio I- 6, Valley ....... I 4 Homt Panorama I 3 Bje a wolf for a change!, door of the embassy mansion. He ambassador is inside. -227 S7.W LU would have to bt in the circum- toward the princess. Saturday. j