The Oregon statesman. (Salem, Or.) 1916-1980, March 12, 1957, Page 1, Image 1

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    g Vpft to Take
asa; O.S. Alairmed
Water Available for
Keizer, 4 Corners in .
Contract Let by City
Water for Salem's suburban communities is assured , by a
$3 million contract awarded Monday by the City Council for
construction of a nevfosupplv line from the North Santiam River
t Stayton, Mayor' Robert F. White said.
The need nf lxith Keizrr and Four Comers could be sup
plird under the contract which the council' awarded Monday
. I to the low .bidder, Lord Brothers
DTP
mum
fCHDOm
Edict by Nasser
Said Surprise
To U.N. Officials
The Washington. Post & Times
Herald st&Fi-jn editorial or
"Oregon's SbiledfAw" jl t h
.these queries:
What's the matter with . Oregon?
Why did the Beaver State fail tp
wash its own dirty linen? Why'
did it allow racketeering and cor
ruption to become so flagrant that
a (elect committee of the United
Slates Senate felt it necessary to
attempt a clean-up job under the
international spotlight that plays
the Senate caucus room? And
whsjiow that a parade of wit
nesses w unfolding sordid tales of
bribery. Vice, uncontrolled gam
bling, racketeerini and political
corrupt ionT" does Oregon appear to
be to little concerned? i
After a. rundown ofxthe testi
money th Post k TimesHerald
concludes: Xv
But the Oregon Legislature
ahould have a more basic interest
In these goings-on than any com
mittee of Congress. Are the auth
orities at Salem afraid of what
they might find? That conclusion
is likely to be drawn by an in
creasing number of people unless
Oregon shows a great deal more
vigor than it has displayed to date,
in cleaning up its own house. ' ,
of Portland, White said after the
council meeting.
In both communities there has
been some talk of drilling wells
because hiilem did not have any
water to spare during the summer
Both Salem and Four Corners
formed water districts recently,
To Increase
The present city supply, which is
adequate during the winter, will
be increased by an estimated 7
million gallons a day by next July
1, contract completion date of the
section from Stayton Island to
Turner, the mayor said. This ca
pacity will be greatly increased
the following summer with com
pletion of the line from Turner to
Salem.
Extension of the supply line to
bilvertos Road from its Salem con
nection at D Street was eliminated
from the project awarded to Lord
Brothers, reducing their 'contract
to $3,093,190 from an original total
bid of 13,336,747.'
The S243.5S7 saving in the pres
ent W,75o;oo6 bond financed pro
gram was undertaken on .the rec
ommendation of a citizens advisory
'committee which' has studied every
phase 01 the program. The com
mittee pointed out that the' exten
sion will not be needed for an esti
mated 10 to 15 years.
Lcwest of Six Bids
Lord. Brothers'-bid was lowest
of fix received ;by the council in
special meeting last month. The
bid were studied by Clark k Groff.
consulting engineers, for two
weeks while the city sold a 13,750,-
000 bond issue to finance the project.
Consulting engineers Clark 4
Groff of Salem, in recommending : learned.
By WILTON WYNN
CAIRO, March 1 (AP) -
Egypt announced today it is
taking over administration of
the turbulent Gaza Strip.
The announcement surprised
U. N. official's in Gaza as they
were smoothing out working ar
rangements between local Arab
officials and the U.N. Emergency
Force. -
Dr. Ralph Bundle, U.N. under
secretary general, said on his re
turn to Cairo from Gaza, however.
that the U.N. . "never, has ques
tioned Egypt's legal rights regard
ing Gaza." -In
two-swift moves, Egypt:
1. Announced appointment of
Gen. Hassan Abdel Latif as gov
ernor of Gaza. The 26 by 8-mile
strip was given up only last week
by Israel a army.
. 2. Fired" off a protest to U.N.
Secretary General Dag Hammar
skjold against the UNEF for fir
ing shots over the head of a mob
in Gaza Sunday. The mob was
demanding return of Egyptian ad
ministration.
Israel "Concerned"
An Israeli government official
in x Jerusalem', expressed grave
concern over the takeover an
nouncement, fearing it might
mean more bloodshed. Israel quit'
the strip on an assumption that
the U.N, would take over,.
The Jewish Telegraph Agency
reported 300 Egyptian police have
moved into the. Gaza Strip. It said
Egypt's flag- was hoisted next to
the U.N. flag over the governor's
headquarters. There are 3,000 U.N.
troops in the strip.
Release of the Egyptian an
nouncement reflected the tension
growing between the Egyptians
and the UNEF.
Neither Bunche nor Mai. Gen.
E. L. M. Burns. UNEF command
er, had an inkling that Egypt in
tended to take such a step, it was
POUNDID 1651
The Weather
Today' forecast: Cloudy
with rain early today. Partly
cloudy with scattered showers
tonight. High today 48; low
tonight 38.
" (CompleU repart ppit t) .
106th Year
2 SECTIONS 16 FACES
The Oregon Statesman, Salem, Oregon, Tuesday, March 12, 1957
PRICE 5
No. 350
Plastic Used toil alt Portland Slides
j yf "
w 4
m hi
i 'ill I
A- h Mil
r
7S
Lie Tests Delayed
As Schcui ink Balks
Hearings
Criticized
By Beck
SEATTLE March 11 (AP)
Teamsters Union President i
Dave Beck today criticized
sharply the conduct of the Sen- j
ates special committee investi
gation of alleged labor rackets,
but said he would appear as a
witness7 without awaiting a sub
poena.
In his . criticism of committee
procedures, in a Post-Intelligencer
interview. Beck declared:
'ft ik mv imnrpecinn that th4
hearing in Washington is not at
all- in harmony -wrth- any judiciaH '
atmosphere. It is colored. It has RnSTOV. M.rrh II IAP1
. AM I ' " ' '
PORTLAND,' Ore., March 11 Householder along this rain-soaked hillside spread plastic
sheeting In the hope of checking slides which annually threaten to reach up to founda
tions. A small slide has moved out into S. W. Burnslde Ave., at extreme left. The plastic
coverings are credited with keeping ground from becoming super-saturated. (AP Wire-photo)
The Washington newspaper acceptance of the Lord Brothers I
seems unaware of the fact lhat;bid.-eonsidereL.a combination .of L
Oregon has not been indifferent to contractors which could have in
. the goings-on now being given aisured an earlier completion of the
laundering in a Senatorial com- total length of water line but ad'
mittee. It was a Portland paper, vised against it
the Oregon ian. which broke t h e
story in its full and astonishing
details nearly a year ago. Gov,
arnor Smith directed Attorney
uenerai Thornton to take over the
Investigation. The slow but due
legal process has since been
followed: grand jury Interrogation
jpjjrunessesJndlctments-arraigtt!
(Cantlnaed aw editorial page, 4.)
Portland TV
Merger Near
, PORTLAND. March II OH - A
merger of two of Portland's four
television stations was in the off
ing today with announcement that
the new owner of KLOR has ar
ranged for purchase of KPTV.
Television sources speculated
that it meant an end to ultra
high frequency broadcasting at
Portland. KPTV, the nation's first
commercial UHF station, has been
broadcasting on channel 27. i
These sources said KPTV's fa
cilities, including an NBC con
tract, would be used on KLOR's
Channel 12, a very high "frequency
channel. Portland's other two sta
tions also are on VHF channels.
George Haggerty, Detroit attor-
- ney and businessman, is the man
behind it all. He announced pur-
cnase 01 kluk on March 1. The
Federal Communications Commis
sion has yet to approve flle trans
action. 1
Frank Riordan. KPTV manager,
said today Haggerty has agreed
to buy KrTV for 11.183.000, con
tingent upon FCC approval of both
purchases.
City Water Sunt. John Geren
said work Is expected to start
within about 45 days.
(Add. etascil news page I.)
RainyDays
On Forecast
Cool and showery conditions
through Saturday art predicted by
the U.S. Weather Bureau at Mc
Nary Field.
Temperatures will average below
normal and precipitation will be
heavier than normal, savs the
bureau. High temperature for to
day and Wednesday will be 48, low
tonight 38. .
No new reports of high water
were received by state or county
authorities. Flooding of secondary
roads near Wheatland Ferry and
between Brooks and Labish Center
was believed to have eased Mon
day. .
WASHINGTON - March-1 i
U.S. officials expressed surprise
ana aiarm .100 ay ai tgypi s an
nouncement that it intends to
take over responsibility" imme
diately for administration of the
Gaza Strip.
Not CMsisteat
The announcement, which In
eluded appointment of Gen. Has
aan Aoaei Law as governor, was
regarded as completely out Of lint
with, what- Egyptian Foreign Min
ister Mahmoud Fawil told U. N.
Secretary General Daf Hammar-
skjold during talk on withdrawal
01 Israeli troops.
(Add. Mideast sUriet
14.)
page
Wyatt 'to Quit
GOP Helm
ASTORIA, March 11 Uft -Wendell
Wyatt announced today
he will resign March 30 as Re-
publican state chairman. - He
called a meeting in Portland for
that date to select a successor.
Wyatt, an Astoria attorney, has
headed the GOP state committee
two years. He had indicated his
intention to resign earlier but said
.today he put it off until he could
wipe out a deficit from the 1956
. campaign. . ,
Oregon Senate
Votes to Turn
Frogs Into Fish
' Bullfrogs are about to become
game fish again, like they were
before the 1953 Oregon Legislature
adopted a new revision of state
- laws( ...
The Senate passed and sent to
the House a bill to make fish out
of the frogs.
Sen. Donald R. Husband R),
Eugene, who said he never went
fishing in his life, explained that
the code revisers had mistakenly
omitted the frogs from the fish
classification.
By classifying them as game
fish, they would again become sub
ject to regulations of the Stats
Gam Commission.
Hitchcock in Surgety
HOLLYWOOD. March 11 I -Alfred
.Hitchcock, 57, motion pic
ture and television director, was
reported in good condition today
after an operation for removal of
gallstones.
A-2 Basket
Meet Starts
At South High
The State A i Basketball Toura-
ment opened fire Monday at, South
Salem High School with Madras,
Dayton, Molalla and Scappoose
notching first-round wins.
Favored Madras dumped Glide
77-45 and Dayton clipped Reeds
port 54-46. Molalla stayed in the
running for the title with a 57-50
victory over Drain, while Scap
poose downed Cascade 64-55.
Today's program opens with
consolation play at 2 p.m.
(Complete details ttwrts pages.)
Barclay Quits
As Aide to '
City Manager
Charles A. Barclay, administra
tive assistant to the Salem city
manager, announced Monday that
he is resigning to devote more
time to personal business. interests.
City Mgr. Kent Mathewson, who
expressed regret at Barclay's de
cision, said he had no one in mind
to fill the office. L
Barclay made his resignation
effective March 30 "or as soon
thereafter as possible." He sub
mitted, a resignation a year ago
to take., a leading role in Mark
Hatfield's successful campaign for.
secretary of state but it never
became effective.
Barclay has been employed by
the city for seven years. His duties
include management of McNary
Field and city personnel officer.
He has represented the city" at
public functions in the absence of
the mayor and has been referred
to more than once as '"assistant
mayor." '
His personal interests include
Barclay's Broiler restaurants in
South Salem and Lebanon, West
ern Security Bam and property
management in Salem. His father
aided in management of the busi
ness until his death last fall.
Barclay said he hopes to con
tinue active in city government
"as time and business will per
mit."
Wage Rule Waived
For Young Pickers
On the Brighter. Side
(V A Q ;; v
John Ericksen
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riAAre fnr h,,...- Here are 1 bunch of faces on the brighter side, and with good
V-neerS Tor UayrOn rtaaoI Thelr team,,he Dayton High School Pirates, had Just
. won their first gams la the A-Z basketball tournament here Monday.
By LIIXIE L. MADSEN
Farm Editor, The Statesmsa
PORTLAND, March 11 - Youngsters unable to earn 50
cents an hour minimum will be permitted to pick beam or fruit.
This was the decision of the Oregon Wage and Hour Com
mission following a two-hour long hearing here-this morning.
The decision was in compliance with a request of the farmers,
and will be in the form of an amendment to the commission's
widely publicized Order No. ' 10,
which covers employment of
minors.
Another request of the farmers
was also granted in the amend
ment, while a third one was denied.
Requirements Re mala
The requirement to obtain work
permits lor minors engaged in
non-hazardous farm work was re
moved, but minors will have to
be able to7eanr"58"" cents an "hour
minimum or they will not' be em
ployed by Oregon farmers except
ing in harvest by unit or piece
work basis.
In asking that the 50-cent an
hourminimum be removed from
all seasonal- agricultural work,
farmers argued that youngsters
frequently hoed orn "by the row"
and twined bean fields "by the
ball". While most of these marie
much more than the 50-cent min
imum, there were a few, who liked
to work, but were unable to work
sufficiently rapidly to earn this
sum.
Mrs. Frederic W. -Young, com
mission chairman, said that al
though the amended order does not
take effect for 60 days, this is ex-J
pected to create no problem since
harvests are not 'actively under
way before then.
Farmers Protest
Same 25 farmers appeared at the
hearing today to protest that farm
harvest cannot feasibly be carried
on if the regular state work permit
and minimum wage rules apply.
(Add. details page 11).
Council Votes
New Franchise
To Bus Firm
A new franchise to insure con
tinuation of. city bus service was
given final passage Monday night
by the Salem City Council.
A large audience at the council
meeting apparently was concerned
with other matters as no voice
was raised for or against the pro
posal at the public hearing.
City Transit Lines Mgr. Carl
Wendt, who had told City officials
that bus service would end March
1 unless the company got financial
relief, has said the new franchise
transferring authority to set rates,
routes and schedules from the city
to the company will keep the buses
going for a time at least.
A letter from St area residents
who said they were bus riders who
asked that the service be continued
without interruption was read at
the meeting. -!
A similar, franchise for City
Transit Lines in Eugene was given
a first reading by the council there
Monday night. Final action is ex
pected Thursday. Wendt had indi
cated that the action was neces
sary in both cities to continue op
erations in either.
(Add. eewncil sews oa page t.) I
all the semblance of political ac
tion, and I personally cannot un
derstand giving credence to testi
mony by prostitutes, gamblers,
narcotic agents such as have
been giving testimony against our
people in the Washington hear
ings." .
Beck also charged the' Secretary
of Labor Mitchell's withdrawal of
his credentials to the Internation
al Labor Organization convention
in Europe was "in effect's pre
judgment-of -me and it was politi
cally inspired." .
Beck .said he.. flew home from
Europe ahead of schedule because
Mitchell had withdrawn his cre
dentials as an American delegate
to the international labor session.
In response to a question as to
whether he might invoke his con
stitutional rights under the Fifth
Amendment in the Senate hear
ing, Beck said he does not intend
to do so as long as the bearings
are limited to teamsters matters
Snd his administration .of the un
ion. -
But he added that he might in
voke the amendment, if his attor
ney so advised him, if the hear
ings get ."into personal matters."
Beck denied knowing any of the
witnesses in the hearing so- far
except Clyde Crosby, Tearhsters
official, and Tom Maloney, Seattle
gambler. Beck said he knew Ma
loney only casually. ' - J
Explorer
1 mi
.1 -jr all
I I s ' "III
Today's Statesman
Pago Sac.
Ann landers .....7 I
Classified 14, 15 II
Comics 12".. II
Crossword .. ....13 II
Editorials .....4 .'. I
Horn Panorama 6, 7...... I
legislature I .. I
Markets 13. II
Obituaries 14 II
Radio-TV 12. II
Sports .... ?, 10..... II
Star Caiar 5 I
Valley News 16 II
Wirephoto Page ....12 II
Rear Admiral Richard E.
B y r d, famed explorer,
died here today..
Admiral
Richard
Byrd Dies
- BOSTON.- March H--Retired
Rear, Adm. Richard E. Byrd,
US.N. 68. the first man to fly over
the North and South Poles, died
peacefully in his sleep tonight at
his Brimmer street home. Ut was
68.
His wife and four children were
at his bedside when he passed
away at (:20 p.m. His death was
attributed to a' heart ailment
brought an ' by overwork In con
nection with his many activities.
The family said that he had
worked without a holiday for
three years' and only recently was
able to get any rest.-Although he
had kept up his work in connection
with the United States antarctic
programs of which he was offi
cer in charge, he gradually weak
ened and finally his heart failed.
His son, Navy Lt. Richard E.
Byrd Jr., said that although his
father had been in ill health; his
death "came as a blow because
he was talking by phone with
Sherman Adams only recently."
(Add. details page J.)
Family of Four
Homeless in Fire
SUtMiiuta Neri Service . .
DALLAS, Ore , March 11 - A
company house at the " Western
Logging Co. of Valsets was de
stroyed by fire about 10:30 this
morning.
The house was occupied by Mr.
and Mr;. Merlin Eng and their two
high school daughters. Almost all
furnishings were destroyed. No es
timate of loss or damage was re
ported.
Questions
7Not About
Testimony
WASHINGTON, March 11
(AP)-Mavor Terry D. Schnink
of Portland, Ore., balked today
at answering questions ha
termed "investigatory" qnes
tions during a lie detector test,
and demanded a chance to answer
the same questions under oath"
before the Senate rackets inves
tigating committee.
Schrunk'a lawyer, Marshall I.
Stewart . of Washington, said
Schrunk then will ask for another
lie detector test to check on the
truthfulness- - of -hi- replies to the
committee.
Robert F. Kennedy, committee
counsel, promptly rearranged his
witness list for tomorrow's re
sumption of the inquiry into alle
gations that West Coast Teamster
Union officials and some Seattle, '
Wash., gamblers muscled in an
rackets in Portland, Ort.
Denuided Test r
Schrunk had demanded today's
lie detector test after denying ta
the committee that while Multnor '
mah County sheriff in 1955, ba
had accepted a bribe -of ')0 from
Portland gambler Clifford (Jim- -myr
Bennett" as alleged by an-
other Portland racketeer, Big Jim
Elkins.
The committee arranged for the
Secret Service to give the lie de
tector test this afternoon, and it
apparently followed a stormy
(three-hour course from I: SO p.m.
Slight Mixup
PORTLAND, March lt ttWRs
eelved at the district , attorney's
fflee today was a letter ad
armed it:
' "District Attorney EIklas.N
The writer asked tar retarn a!
eaieeled checks ased as evt
deaee la a reeeit etwrt ease.
The district literacy, hawever,
Is William M. Langley, wase .
arch-foe Is the vice emtraverty
la Portlasd Is gambler Jim Elkins.
Sale of Building Will Close
Longtime Salem Business
One of Salem'a oldest businesses Commercial St., occupied by the
will close as a result of the trans
fer in ownership of one of the city's
oldest mercantile buildings, it was
disclosed Monday.
The two-story structure at 125 N.
Committee Endorses Parole Probe
After Verbal Duel Over Cahill Case
By ROBERT E. GANGH ARE
City Editer, The SUIesmaa
A Democratic-controlled House
committee cracked the whip Mon-
day on three Republican sponsors
of a move to' investigate Gov.
Robert D. Holmes' release of Otto
Cahill from prison.
Committeemen officially recom
mended House passage of an in
vestigation, resolution, but 0 n 1 y
after these developments:
1 Sharp verbal exchanges in
which motives of the sponsors were
questioned.
J A rewriting of the investigat
ing resolution to broaden it by in
cluding clemency, practices, of re
cent Republican governors, too.
J Recommending a Democratic
majority on the proposed investi
gating committee, instead of the
even party - split originally sug
gested.
After 40 minutes of pointed quer
s from the House ' state and
federal affairs committee and
soma shouting at the Monday
Chindgren (Rl, Molalla, a member
of that committee and dean of the
morning hearing. Rep. Herman
Legislature Today
I a.n. Senate elections com
mittee considers SB 300 and
SJR 22, to make representa
tives' terms four years Instead
of two; Room 422.
10 a.m. Senate snd House
meet.
1 p.m.-House highways com
mittee hearing on HB 538, au
thorizing state to fix vehicle
noise standards, Room 326.
1 st.m.-Senate military com
mittee considering proposed in
crease in veterans' loans HB
30S, Room 400.
t:M p.m. - Senate agriculture
committee hearing on SB 302,
abolishing Stale Fair Board,
Room 309.
House after 12 sessions, had this
to say :
"I don't like this matter of horse
whipping witnesses. I've been here
a long time and never seen it
worse than at this, hearing."
Rep. Clarence Barton (D), Co
quille, committeeman and a House
Democratic leader, shot backr '
"And I don't like this matter of
horsewhipping the governor,
either." '
Investigation sponsors under
questioning were Reps. Wayne
Giesy Monrdo; Graham Killam
and Fred Meek, both of Portland.
Other sponsors are Rep. V. E.
Johnson R, Eugene, and Sen. Lee
Ohmart (Rl, Salem.
Their resolution grew out of Gov.
Holmes' recent commutation of the
sentence of Qtto Cahill, former
Oceanlake water district secretary'
convicted of taking $750 of district
funds.
Cahill was released three weeks, PlanfiS Get A-WeapOflS
Shafer Leather Goods Store, has
been purchased for $30,000 from
the Gertrude Stapleton Estate
by the First Federal Savings and
Loan Association which adjoins the
building to the north.
Announcement of the purchase
was made by Fred Keeler, asso
ciation president.
The structure will be leased by
Peter M. Gunnar, attorney, effec
tive May 1 for three years, Gun
nar said Monday.
It is contemplated eventually
that the First Federal firm will
use it for expanded quarters.
Frank Shafer, son of the 'founder
of the Shafer Leather Goods Store
who has operated it for 27 years,
said he planned to close the busi
ness and go into the insurance
field with Jack, Lochead at 361
Chemeketa St.
The Shafer Store was founded
67 years ago by Francis E. Shafer,
at 170 S. Commercial St. For a
time later It was across the street
at 175 S. Commercial St. until it
moved into its present quarters, a
block-north of its original location
17 years ago.
The" building was the original
location of Breyman Bros., general
store which operated y there for
many years. " --
before he would have been paroled.
The governor said the commuta
tion wis because of hL severe
heart condition.
(Additional details oa
Legislative Page S)
RAMSTE1M. Germany. March
11 urv-jtlaj. Gen. John Gerhard,
commander of the U.S. 12th Air
Force, said today all his wings
are equipped to carry atomic
bombs.. - 1 -
to 1:30 p.m. with Schrunk and
Stewart challenging the propriety
of the questions. -
Nine Questions
Stewart said nine . major ques
tions were propounded, of which
he contended only three had to do
with Schrunk 's testimony before
the committee. -' "
He said Schrunk balked when
the lie detector operators asked
him if he had every taken any
bribes from anyone, and spe
cifically if he ever "took money"
from Stan Terry, a Portland pin
ball machine operators.
Nat Exploratory -,
Stewart said "a lie detector test
is not the place for exploratory
questioning. .It is a place to sub
stantiate or verify testimony that
has been given previously."
He said Schrunk wants the com
mittee to ask those questions and
others at which the mayor balked
in the lie detector tests. Schrunk '
then will ask for permission to
have another lie detector examina
tion on this testimony, he said.
He said the only questions
asked which he considered rele
vant were whether Schrunk had ,
received a bribe, from Bennett,
whether he had picked up a
"package" which some witnesses
contend contained a bribe put up
by Bennett, and whether he gave
Bennett any assurance in ex
change for a payment.
Son. McClellan (D-Ark) said to
day he has a message from Presi
dent Dave Beck of the Teamsters
Union indicating "a measure of
reservation" about how much co
operation Beck may give to Sen
ate rackets investigators. .
Ward Seat
McClellan said Beck, just back
Mom Europe, sent him word by
messenger that he plans to get
a physical checkup and ' consult
with tax attorneys before deciding
"what materials or records he will
submit" to the investigators. . -, -
McClellan to.ld reporters ha
would be highly curious if Beck's
physicians recommend against his
coming to Washington for ques
tioning by the committee.
"In my opinion," he said, "Mr.
Beck's travels abroad xlearly. in-,.
Ldicate he can travel from Seattle
to Washington. It would take soma
pretty' strong evidence to refute
that."-
(AddT details oa page It.)
3