The Oregon statesman. (Salem, Or.) 1916-1980, March 10, 1957, Page 1, Image 1

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    The Weather
Today's .forecast: Partly
cloudy with scattered shewars
today and Monday. High 50.
low 35.
-
(CttmplrU report pact 1)
mm
106th Yoar
330 Portland Teamsters
Praise Inquiry by Senate
3MEEE
mum
The' IF,: Sr Senate has passed a
bill introduced by Sen. Richard L.
Neuberger to extend for 18 months
the date for termination of gov
ernment management of affairs of
the Klamath Indians, Present law
calls for this windup by August,
1958. The extension is urged, to
'give more time for disposing of (lie
rich tribal assets whose value is
estimated as high as $100 million..
The trihe nwn the most valuable
stand of pinrtmberirthejC(ian: -
try, The House is expected to take
similar action a duplicate of the
Neubcxger bill was introduced in
the House by Rep. Al Ullman. The
bill also shifts the cost of termi
nation from the tribe, to the gov
ernment. Termination was ordered in a
law passed in 1954, as part of a
policy expressed in a resolution
passed by Congress in 1953 which
calls for the government to with
draw from supervision of Indians
as fast as possible, consistent with
Indian welfare. The Klamaths were
chosen as one of the tribes best
prepared for full economic free
dom.
Under the law, ' Indians were
given the option 6 choose whether
to take their share of tribal wealth
or to join with others in manage
ment of their resources as a co
operative. A survey showed that a
majority of the Indians would ask
for . their share -in money, This
would necessitate a breakup of the
reservation- and sale of a large
portion of the lands to raise the
.necessary funds. The management
specialists, headed by Tom Wat
ters of Klamath Falls, were
alarmed at this prospect. They
saw that, sales would have to be
made in small parcels to get the
highest
(Continued oa editorial page, 4.)
Today's Statesman
: Pag Sac.
Ann Lander .--.17... Ill
Classified .....25-27.. .IV
Comics ......1.. V
Crossword 24...IV
Editorials 4 -
Garden 12,13 II
Homo Panorama 15-22... Ill
legislative Newt 6... I
Obituaries. ...2...IV
Radio-TV ....28...IV
Sport .. ,10 v II
Star Cazer 3 I
Valley Now ...23,24.. .IV
Wlrephoto Pago... 10... II
Brick Layers
As
A lot of brick was laid Saturday
wrth the Salent Trade and Labor council donated services. Left to right: Rolland Dally,
1(117 Sixth St., member or Laborers' Local 441; and three members of Brick Layer and
Masons Local No. 5 Jack Vickers, Turner; John Burkl, 238S Chemawa Rd.; and Gene
Byers, Salem Route 5, Box 400. (Story on page 5)
5 SECTIONS-36 PAGES
FBI Refuses
Elkins Tapes
WASHINGTON, March 8 (Pi
The Senate's investigation of labor'
racketeering received the endorse
ment of 330 members of the Port
land, Ore. local of the Teamsters
said Saturday,
McClellan, who is chairman of
the investigating committee, told'
Nasser States Arabs
To Conquer Palestine
CAIRO, Egypt, March I W
President Nasser told Palestinian
students from Gaza today that
Arab nationalism bad liberated
Tl'r Gazatriandwlll help as
win back all of Palestine."
Nasser spoke to a Ihmsand stu
dents who assembled at the presi
dential palace ta hall the presi
dent as the liberator ( Gaza and
to demand that Egyptians return
to the strip as administrators.
In bis first speech since Israeli
forces withdrew from Gaza this
. .
Egypt Will Insist on Direct
Payment of All Canal Tolls
By WILTON
CAIRO, March 9 (AP) Egypt's Information director de
clared today all Suez Cabal tolls must be paid henceforth to
Egyptian authorities. He rejected a U. S. backed proposal for
collection tfV a neutral agency which would split the revenue
with Egypt 50-50. ; -
"The Egyptian government will not accept any such pro
posals because it violates Egypt
rights according to the 1888 con
vention on the Suez Canal," di
rector Abdel Kadar Hatem said
in jn interview,,.
Methods for collection of the
tolls running , around 100 million
dollars a year have been dis
puted since President Nasser's na
tionalization last July of Egyptian
assets of the Paris-based Suez
Canal Co. The issue returns to the
spotlight now that fl) Israel' final
ly has evacuated the Gaza Strip
and Sharm El Sheikh, the last bits
of territory she won in the British-French
- Israeli invasion of
Egypt last fail, and (2) the canal
is cleared of .all but two of the
major hulks blocking the channel.
The United States, Britain and
France suggested to U.N. Secre
tary General Dag Hammarskjold
last month the tolls 'might be paid
to the World Bank of some other
internatjonat agency, which would
give Egypt 'half for operating ex
penses and impound the rest until
the toll issue is finally settled
Take Turn at Aiding YMCA
x '
In the Salem YMCA' new gymnasium as worker affiliated
to G ive Lie Test to Schrunk;
Said Too Obscene for Public
of receiving a telegram with
the
the
330 signatures. The names .of
signers were not made public.
"We wish the removal from of
fice of aoy Teamster official found
guilty of racketeering or misuse
of union funds," the telegram said.
"We favor legislation to
Prevcnt i
T
week, Nasser said:
"We are now stronger than be
fore and we shall work to restore
the rights of the Gaza owners,
w.IhAwhcte"
ambitions of Zionism. It extends i
from Moroecs to Baghdad and it j
li a weapon for ns in battles that
await us in the future, tl was the
weapon that gave us victory
against two powerful countries,
Britain and France."
WYNN
Mercury Dip
On Forecast
Slightly- cooler temperature Is
expected for the Salem area today
with some clouds and scattered
showers, the Weather Bureau at
McNary Field said. High 4oday
should range near SO and the
low near 35.
Forecast for the beach areas is
for a few brief sunny periods today
with considerable cloudiness. . ,
The consistent rain during the
past week has created road prob
lems for motorists in several
areas.
" The Marion County sheriff's of
fice reported the road between
Labish Center and Brooks was
covered with water and warned
motorists- to be cautious.
A report was also received that
high water flooded abdut 500 feet
of Windsor Island Road in the
Keizer district about a half-mile
. south of Clear Lake Bridge.
)) I
The Oragon Statesman,
recurrence of such a situation as
now exists."
The committee said today some
of its evidence is '"too obscene . . .
too dirty' 'to be used in a public
hearing.
Robert F. Kennedv. 31-vear-olH
committee counsel, said the evi
dence in question consists of tape
and wire recording's of conversa
tions. He said the recordings were
made secretly by racketeer James
B. i Big. Jim) Klkins of Portland,
Ore., when Klkins thought rival
racketeers and some teamsters
union oificials were about to
"frame" him.
Public to Hear Some
Kennedy said some of the re
cordings which are "less obscene'
' rill L nloirail i.U ...I
T i,! P"blic
lnese "coroings may become
j uiajur cviuciicu in ine commiiiee s
investigation of testimony linking
some West Coast Teamsters Union
officials wi,th ventures into rack
eteering. "
, Elkins has sworn that Frank W.
Brewster, president of the 11-state
Western Conference of Teamsters;
Clyde C. Crosby, the union's Ore
gon boss and others high in the
union, linked up with Seattle
racketeers in an effort to take
over and expand gambling and
prostitution in Portland, Ore.
May Have U Fly
Kennedy disclosed that the com
mittee has ordered Crosby to pro
duce by Tuesday even if he has
to fly back to Portland to do so
some of Elkins' recordings seized
in a raid on orders frorn William
M. Langley, indicted district at
torney of Multnomah County
(Portland), Ore.
The raid, made on a search
warrant later held by a court to
have been illegally issued, was on
the - home of Ray Clark, an em
ploye of Elkins. Some of the re
cordingsoriginals and copies of
originals ultimately found their
way into Crosby's hands, he testi
fied Friday. He said he wasnot
sure how 'quickly he could find
them in his home.
Kennedy said that if Crosby- has
to fly back to Portland to locate
the recordings it may be neces
sary to defer Crosby's return to
the witness stand, now scheduled
for Tuesday morning, until later
in the day or week. He said Lang
ley would be the first witness on
Tuesday if that happens.
Refuse to Give Test
In other developments in the
Portland inquiry the starting
point for a nationwide series of
hearings- in - the committee's;
search for evidence of racketeer
infiltration of labor unions and in
dustry: 1. The FBI refused to give "Dem
ocratic Mayor Terry D. Schrunk
of Portland a lie detector lest to
check his denial that he accepted
a l.00 bribe to call off a gambling
raid in September, 1955. The com
mittee asked the Secret Service
to give Schrunk the test Monday.
The FBI declined to give a rea
son for its action.
2. Kennedy said some of the
tape recordings may be played in
to evidence in connection with Dis
trict- Attorney Langley s testi
mony. Elkins contends the record
ings will back his story that Lang
ley complained his share of pay
offs on Elkins' gambling enter
prises was "piddling," and that
Langley -discussed with racketeers
a plan to "'frame" Elkins.
Te Sunmnk Brewster "
S. Brewster will be summoned,
soon after Langley and Crosby are
heard, Tor questioning about testi
mony concerning his alleged role
in Portland's underworld.
4. Kennedy said Brewster also
will be asked about allegations
that he used union funds to help
maintain a stable of race horses.
Kennedy himself had testified at
a prior investigation that tie had
found evidence of this.
Kennedy said some of the tape
recordings obtained from Elkins
are "so dirty that they just can't
be played in a public hearing."
He added:
"These will be referred to hi the
testimony, and if there la a ques
tion about it they will have to be
played in an executive session.
We will play some that, are less
obscene in the public sessions."
He said some of the discussions
involved "obscene matters" and
others were marked by "Vulgar
language in -the course of conver
sations the 1 talkers didn't know
were being recorded. ' ' '
Elkins says he. "bugged" some
rooms - witn 1 concealed micro
phones and also carried miniature
sound recording devices on his
person, to record face In face
talks with Brewster and others.
POUND0D 1651
Salam, Oregon, Sunday, March
Soviet Sets
Off Nuclear
Explosion
By FRED S. HOFFMAN
WASHINGTON, March 9
Russia set off another nuclear
test explosion yesterday, the
Atomic Energy Commission
announced today.
This was the sixth such an
nouncement since-, last August
when the AEC reported this start
of a Russian test series. -
As usual, the AEC announce
ment gave only the barest infor
mation. It said:
"The Soviet Union has conducted
another nuclear weapons test.
"The latest detonation occurred
on March 8. 1937, and was in the
range of size of their retent ex
plosions." There w as no indication whether
the latest test involved a hydro
gen device or conventional atomic
weapon.
However, an earlier AEC - an
nouncement had said a Soviet test
blast directed by U.S. monitors in
August utilized a device with an
explosive yield or less than the
equivalent of one million tons of
TNT.
Juror Denies
Infli
uence
By Shrunk
, PORTLAND, March 9 W Gene
Kossman, a former county com
missioner, and his wrfc, a former
grand juror, saidtoday there was
nothing improper in their actions
in a recent case involving Mayor
Terry Schrunk.
Schrunk, then sheriff, was. ac
cused in the case of taking a bribe
from a Portland gambler.
Mrs. Rossman said she was on
the grand jury( that investigated
the matter, Schrunk was not in
dicted. Robert Kennedy, counsel for, the
Senate committee investigator la
bor racketeering, asked this ques
tion of Schrunk . in Washington
yesterday:
"Do you not also know that
Mrs. Rossman voted one way one
day, then announced to the grand
jury that she was changing her
vote and the same day you ap
pointed', or within a day you ap
pointed her husband to the zoo
commission.'
Another question Kennedy put
to Schrunk was whether Mrs
Rossman changed her vote after
talking to Ray hell, who man
aged Schrunk's campaign for
last year. Schrunk denied it.
Mrs. Rossman said here she
doesn't even know Kell.
Rossman laid the too commis
sion job is no favor.
He said Schrunk . discussed it
with him "a long time before this
grand jury business ever came
up."
Rossman added, "There's abso
lutely no pay of any kind for serv
ing on the roo commission. It's
just a lot of work,"
Eugene Estimate
For Population
Tops Salem Mark
EUGENE, March 9 Ifi Eu
gene has replaced Salem as the
second largest city in Oregon; ac
cording to the population esti
mates of city recorders.
Eugene Recorder Don Potter
estimated his city's population at
46,482. Salem's was estimated by
Recorder Al Mundt at 46,313.
The estimates are submitted to
the state board of census as a
basis for sharing state .revenues
based on population.
Struggle Not Over
TEL AVIV, Israel, Sunday,
March 10 tl Foreign Minister
Colda Meier arrived early today
from the U.N in New York and
said Israel's struggle is not over.
Seventy-Seven Spelling Champs Set for
Statesman-KSLM Contest Semi-Finals
Seventy-seven school spelling
champions 57 girls and 20 boys
were all set today to compete
In the semi-finals of The Oregon
Statesman-KSLM Spelling Con
test. ; ;
The semi-finals, of which, there -are
nine, will start a week from 1
Monday night, March 18, at Turn
er. Each school champion will
earticioate in one of the semi-
finals which will be held at vari
ous schools for nine consecutive
school days.
The two top spellers in each
semi-finals will cumpete in the
Grand Finals at Parrish 'Junior
High in Salem," April 3. . ,
All contests art open to the
10, 1957
U.S. Public to
PHILADELPHIA, March 9 The
4'-, , ';. ... f -rrumiiiami.n mr r-iiwianHini -
-fe . 1 - I
"critical" in preparation for its display at the 1957 Nuclear Congress, the first before an
American public. Left to right Dr. Leo Talbott, of Catholic University, Washington,
D. C; Al-Davis,. Gus Linenbergef and Robert Mainhardt, all of Aerojet-Nucleanics, San
Ramon, Calif. (Story on Page 2) (AP Wlrephoto)
Employers labor Gird
For Jobless Pay Battle
By PAIL W. HARVEY JR.
Associated press Writer
Tlie hipnnial struggle between employers and la1r over
unemployment compensation starts this week, the arena being
the Senate Iabor and Industries Committee.
At issue are lalxnr's bills asking for big increases in the job
less pay rates, with a resulting boost in employer payroll taxes
to support the increases. Naturally, the employers don't like
the bills at an.
Even if" the present benefit scale
were maintained, the employers
would be likely to get tapped for
larger contributions. That s be
cause the unemployment trust
fund, out of which benefits are
paid, has shrunk to a postwar low
marlLbLMimuiionaMJsjhrmk
ing at the rate of S3'j million a
year.
Seeks Balance
The fund is maintained by em
ployer contributions, and Gov.
Holmes wants to see the income
equal the outgo. ,
The employers argue that they
can't afford more taxes, and that
higher taxes would discourage in
dustry from coming to Oregon.
The Senate committee, headed
by' Sen. Phil Brady ID), Portland,
former Portland labor leader, had
a preliminary look-see at the bills
last week. It was then that Rob
ert .McKean, Portland, represent
ative of the employers, expressed
his intense dislike of the bills.
They were introduced Feb. 4 by
Brady, at the request of the state
AFL-CIO labor council. The coun
cil has been restive over the delay
in consideration of the bills.
Boast ta Benefits
The main feature of the bills is
the proposed boost in maximum
benefits, . which : now are $35 a
weckj .' ' Jf
The maximum , would be in
creased to $40 a week next July 1,
$45 a year later, and $50 on July
1, 1959.
After July 1, 1960, the top would
be two-thirds of the average wage
heing'paid in the state, if the aver
age then is the same as it is now,
this top would be about $56.
Nobody knows just how much it
would cost, but one estimate places
tfie new program at $8,000-,000'
more than it now costs.;
The law now applies-to firms
with two or more employes. The
labor measures would extend cov
erage to firms with only one em
ploye, The sponsors will get a sympa
thetic ear in the committee, since
it has a Democratic majority. '
ptjblic without charge or collec
tion of any kind. Winners of each
semi-final receive a Webster's
New Collegiate Dictionary. Grand
prize is a $100 bond. ; .
Of the 77 spelling champions
thus far chosen, 51 are in the 8th
grade, 26 in the 7th.
Eighty-three schools originally
registered, for the J957 event
the seventh of its kind. 1
Three have since ' withdrawn
(Henry Hill at Independence,
Guthrie and Greenwood, the lat
ter because It now has no 7th
or 8th grades). ' v
The other three still had not
reported their winners Saturday
PRICE 10c
Get First Glimpse of A-Reactor
AfiN 201, a small, mass-produced reactor Is brought to '
Y Book Fair
Nets $500
The third annual YMCA Book
Fair JFriday and -Saturday was
close to a sellout and netted ap
proximately $500 for the "Y"
same as last year.- '
Only 200 volumes, mostly text
books, remained from the original.
7,000 books that went on sale Fri
day morning.
The Y's Mennettes, a YMCA
auxiliary, sponsored the sale and
will determine what to do with the
money. Last year the receipts
were usied for the new swimming
pool, and in 1955 the $460 collected
went into a large gas range for
the main kitchen,,; ; '
. . Books jyeredonated by Salem
residents and sold at 10 cents per
hard rover book and 5 cents per
paperback.. The biggest single sale
was $7.50, when one man went
home with 75 books Friday.
$1.5 Million School
Planned in Portland
Portland; March 9 The
Dominican Sisters of Oregon, a
Roman Catholic order, today an
nounced plans for a 14 million
dollar Catholic high school for
girls in the Portland east suburbs,
' ii .. r
Mexico Police
Tourists Slain by Guides
By CHARLES H. GITTII.L
MEXICO CITY. March 9 (Al -
Federal security, police said to
night two Americans who van
ished from Acapulco 17 days ago
were robbed and slain by two
Mexican tourist guides, but the
bodies are still missing.
The two men -denied any part in
the alleged slaying.
Police CommanBer Gutierrez
Donald, Dayton and Lourdes
(in Linn County).
Eight hundred words were
published in The Statesman at
the rate of 20 a day. The final list
appeared last Tuesday. - From
-these 800 words, 250 have been
chosen to make up the word lists
i for the. semi-finals. If any con
testants survive ; the 250 words
(which has happened at times),
another list of 50 unpublished
but generally familiar words will
be used to determine the winner.
Mnetar nf wpmftnif for the
semi-finals and finals is to beNP in 11,6 investigation,
Dave Hoss of KSLM and word
caller will be Wendell Webb of
The Oregon Statesman.
No. 348
. i
Os West Asks
State Retain
Control Board
In a telephone call to The States
man last night former Governor
Os West expressed his opposition
to HB 506 to abolish the State
Board of Control and vest its pow
ers in the hands of the governor.
During his term as governor' in
1913 West, a Democrat, urged the
creation of the board of control.
Last night he remarked:
"I think it was one of the most
constructive pieces of legislation
which we passed. I had control of
the penitentiary but gave it up.
We divided responsibility for insti
tutions among the members of the
board."
The board of control is composed
of the governor, secretary of state
and state treasurer. It governs the
stale institutions. Gov. Wes, who
lives 'n Portland went on to sayT,
"You can quote me as strongly
opposed to this HB 506. As a
Democrat 1 hope to see it defeated
as it will turn out bad for the
Democrats. I hope the Democrats
don't make damn fools of them
selves by passing this bill, and I
hope the Republicans in the Senate
will have brains enough to defeat
it."
Mill Operating
On 6-Day Week
HKPPNER, March I '- While
many other lumber plants are on
four or three day work weeks
Heppner Pine Mills is on a 6-day
basis. :
The ulant is operating Satur
days and -manager Paul - Koenig
said he hopes to continue the
schedule about 14 weeks.
A good demand for pine mkeLships in tne harbor rocked vlf.
it possible, he said.
Say 2 U.S.
Barrios said a third Mexican, Luis
Fenton, confessed planning the
robbery of Joseph A. Michel', 70,
New York City, and Mrs. Edith
Hallock, 63,. Brooklyn. He irripli
fcated the others.
Fenton . met the touring couple
in his capacity as a tourist agent
at ACapulco. a coast resort.
An official announcement ear
lier said two .bodies described as
resembling Michel and Mrs. Hal
lock were found on . a remote
beach 100 miles north of Acapul
co. . . .
Police said officers who drove
over rough roads to the scene
found the body of only one man,
a Mexican, who had been killed
in an auto accident. -
The police commander quoted
Fenton as identifying the killers
as Roberto Zuniga and Claudio
Fernandez, tourist guides in Aca-
u'fo-
Jewelry estimated to be worth
$70,000 was dug up by police from
beneath a palm tree in a garden
at the. home of Fenton's brother-in-law
12 miles from Acapulco.
Mrs. Hallock's sister, Mrs. Ruth
Hoffman of Brooklyn, identified
the jewelry as belonging to the
missing woman. She came here to
Mrs. Hallock was a well-to-do
widow and Michel a prominent at
torney. , . . ,
Result of
Quakes in
Aleutians
No Casualties
From Waves, Bui
Air Crash Fatal .
By JIM BECKER
HONOLULU, March 9 (AP)
A scries of tidal waves from 3
to 9 feet high, .triggered 'oy
major earthquakes in Alaska,
crashed over- the northern
shores of. the Hawaiian Island
for five hours today. '
The waves rolled inland up to a
quarter of a mile and virtually
destroyed two villages - on the
:-t I -i I'-..-:
Some bridges and roads - wera
washed out. Huge hunks of coral
By The Associated Press
The tidal wave that was trlg
gerrd by a violent earthquake
in the Aleutiaa Islands appar
ently mined the' Oregon coast.
All wai calm Saturday, and
ther points reported no disturb
ances. (
Several small California coast
al cnnr.nunlties were evacuated
during an aleri of several hours,
but only minor waves reached
Callfernia shores.
rock were tossed into sugar cane
fields.
Many small boats weri
wrecked.
There were no confirmed casual
ties due to wave action. '
Reporter kltt
Sarah Park, reporter for the
Honolulu Star-Bulletin who was
observing the waves, was" killed
in the crash of a light plane off
North Oahu. The pilot and a pho
tographer were injured, the pilot
critically.
Two sailors were swept off a
enhmarin in m Kauai Harhnr hut
were rescued.
The Air Force searched for
three persons rumored missing
off Kauai, but police there said
they had "no report of "anyone
missing. '
The first wave hit the northers
shores of the islands at 8:58 a.m.
almost to the minute of its
predicted arrival.
Earth Shock
It was generated by a strong
earth shock in the Aleutians at
4:07 e m. HST. The waves raced
at 500 miles an hour across the
Pacific, hitting first Midway Is-land--amMhen
Hawaii.-
No damage was reported on
Midway.
Christmas Island,' the British-H-bomb
test site, had waves one
foot above normal, the Navy said.
New surges were expected fol
lowing a second and third quake
in the same area but did net ma
terialize here.
The waves diminished slowly,
but steadily. Pacific Fleet head
quarters at Pearl Harbor called
off the tidal wave alert at 3:30
p.m. ,
Damage was generally concen
trated on the two northern island! '
of Kauai and Oahu.
Warning Glvea
Ample warning enabled persona
to evacuate beach areas. A sur
prise tidal wave generated in the
same Aleutian area, killed 169 per
sons and caused 25 million dollars
damage in Hawaii in 1948.
Two small villages on Kauai,
Vntahinr-l Mt.-UHih. war lfln
tually washed away today. Twelve
houses were swept out to sea in
Kalahiwai and six in Wainiha.
Police said most of the houses
were flimsy beach structures.
The Red Cross set up shelteri
for the homeless. v i ?
Honolulu Harbor was closed tof
eight hours and the linen Lurlina
and , Leilanl remained outside,
along with several other ships.
They docked about six hours be
hind schedule.
orously as the tide level dropped
up to 10 teet. , v
Ocean Level Dropped
The waves rolled in 15 to 20 min
utes apart. Before each one, the
ocean level dropped several feet,
exposing sandy bottom," ;
The weather remained sunny
and balmy throughout
On Oahu, water washed through
some homes and fields and left
muH aand and fitraArift fihr:tMu
hind. Several persons were report
ed catching fish in cane fields.
One man gathered 40 pounds of k
stranded fish. " " ; ;t
But at Waikikl, across the is
land, one surfboard rider calmly
paddled away, although the surf
ran high. And a traveling circus,
its tent pitched 200 yards from the
shore, played a matinee to a full
house. -
Miss. Park, 29, killed in the plana
crash was a war correspondent j
in Korea. ; , ,
Critically injured was Pa.uL O.
Beam, 42, advertising eXMutiva
and former Associated Press war
correspondent, who was flying the
plane. A Kahuku hospital spokes
man said he was expected to recover...-,
to.-
Photographer Jack Matsumoto
of the Star-Bulletin was less seri
ously hurt,
Morse Attacks Policy
AKRON, Ohio, March 9 (1
tonight President Eisenhower and
Secretary of State Dullea are
leading the people of tail country
into tragedy with their .Middle
East oolicjr.
4.