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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 24, 1994)
EH? aooooe Anti-Inflation POUNDDD 1651 NINETY-FIFTH YEAR 20 PAGES Salem. Oregon, Sunday Morning, February 24, 1948 Price 5c No. 287 , - ;. ' i I ; - . . . . s-i Strange as St may seem, much t1 the best writing' of recent years on the engrossing problem of man and his economic organize lion has been done by authors who were horn in old Austro- lluagary, who have matured in the' period after the first World war. Usually we cancel out that part of F.urope with the downfall of the old Hapsburg monarchy, Vienna still claimed some prestige in music and medicine; it had Mime unique experiments in mu nicipal housing. But of other .contribution to. thought and life it was unproductive, a land whose . if lory "and whose achievement had . departed. Yet out of this environ- . ment have come men with real . contributions in the field of social and economic theory. I might eall these writers Danubians, because of the region , f their birth; but the jgeography of birth and education and inter est in economics are about all uthey have in common. There is i no unity in their theory or "philosophy. Each makes his own contribution, separately. Who are H these Danubians? Peter F. Druck er, author of "The End of Eco nomic Man" and "The Future of Industrial Man;' Freidrich A. Hayek whose "The Road to Serf dom" was quite a sensation a year ago; Karl Polanyi, author of "The Great Transformation;" and Arthur Koestler, whose recent "The Yogi and the Commissar" it a contribution (Continued on Editorial Page) 7 Men Hurt in West Scio Car, Train Accident ALBANY, Ore., Feb. 23 UP) Seven men were injured, two seriously, when their auto col lided broadside into a Southern Pacific logging train at West Scio crossing tonight and wedged be neath one of the railroad cars. The Albany General hospital - reported Ola ' Haugen and Carl Haugen. brothers, of Scio, and Leo Hodges of Portland were treated for lacerations and bruises ;.nd that two sailors from a ship berthed at Portland were removed to the naval - hofpitat at Camp Adair. The seamen, Fireman 2c LeRoy Rush and Signalman 3c Stanley Engelheart, were the most ser iously hurt, the Albany hospital retorted. State police headquarters re ported Haugen was driving the car when it struck the train about 8:30 p.m. The rammed car of the train wa derailed by the impact and was righted two hours later, state police reported. Coast Road to Open Monday Clearing of a slide blocking the Oregon Coast highway is In pro gress and the road should be open by Sunday night or Monday, State Highway F.ngineer R. H. Baldotk reported Saturday. The slide, 12 miles north of Florence, covered 150 feet of the highway Friday night. A work crew and equipment were sent to the scene from Salem early Sat urday. Other road conditions: Santiam Junction Overrast. Roads normal except for light Slush. Odell Lake Two short sec tions of one-way traffic on Wil lamette highway above Oakridge. Roeburg Clear. The Dalle Light rain. Buker Clear. PAYROLLS OFF $20,000,000 c Covered payrolls in Oregon dropped from $52,264,936 in Jan uary, 1045, to $31,782,507 this January, the state industrial ac cident commission reported here Saturday. The December,! 1945, payroll was $33,246,864. Animal Crackers By WARPEN GOODRICH lis "---rC-r.-r Om io Sub Wrnttcf -'v.- - ? US To whidfend can I $peak-uxgT Wrdi" h WASHINGTON. Feb. 23 Paul Porter, new chief of OPA, whs outlined his policies far wiping ut the threat of Inflation at a meeting of the American Insti tute of Banking tonight. New OPA Boss Sets Policies WASHINGTON, Feb. 23-0?')-Paul Porter said tonight that as the new boss of OPA he proposes to hold the price line, build up production and wipe out the "threat of inflation." In a speech prepared for de livery to the Washington chapter of the American Institute of Banking, Porter announced his aims this way: "I propose to attempt to utilize necessary controls to expedite production without the sacrifice of stability. And I believe it can be done. I don't propose to let up until the tide of production has eliminated the threat of inflation and victory is ours." Making his first public appear ance since he became price ad ministrator, Porter said that this is "no time for crepe-hanging," that "we can control inflation." Record Shows "The record of the last two and a half years," he said, "shows that very clearly." Since he took on the OPA job, Porter said, "a lot of perfectly re sponsible people seem to be sug gesting that the fight against in flation is 1 millstone chained around our collective1 "n'ecki and that we .are going to be pushed overboard any minute now." Has Answers Porter had his answers ready. He said: Both employment and produc tion now stand at "record peace time peaks." During the war, with price control, production more than doubled. In 1 9 4 5 , business failures "reached an all-time low" of 810. And In 1946, Porter comment ed, with excess profits taxes re pealed, it is expected that profits after taxes will be at record height. "But there's no point In kidding ourselves," he insisted, adding that pressures against the present price line "are terrific." "We are face to face with cri tical dangers that inflation will destroy all we have and blast us into a future of limited markets, constricted earnings and needless poverty." Support Grows For Vardaman WASHINGTON, Feb. 23-fP)-A majority of a senate banking sub committee, on the basis of the record so far, favors senate con firmation for Commodore James K. Vardaman for a 14-year term on the federal reserve board. Senator McFarland (D-Ariz) announced he would recommend confirmation on the "basis of our hearings thus far." Two other members of the sub committee, who declined to per mit use of their names at this time, said they too favored con firmation of Vardaman, President Truman's friend and naval aide. Republicans, Democrats Jockey GOP Decides m Platform Planks SALT LAKE CITY, Feb. 23-W) A western republican conference demanded tonight that employe organizations be held equally li able with employers for the car rying out of provisions of a labor contract. The expression was contained in a declaration of principles adopted at concluding sessions of a two-day conference attended by republican party leaders from 11 western states and Alaska. The statement said that the re publican party Insists "that hu man rights .must come first" and that human rights "include under our constitution protection of the people against the ordering of their lives from Washington." The republicans called for leg islation granting the right "to a Governor To Seek 2nd Term i 'Mi I 2 Candidates foi Congress Seats; ; Deadline Nears L Politics gathered momentum for the 1946 election year in Ore gon today with the Announcement of Gov. Earl Snell that he had turned down "offers far more at tractive financially" In order to become a candidate to succeed himself and "carry forward the important work now well under way." The governor's statement (pub lished in full on page 4) was is sued simultaneously with a re minder of the secretary of state's office that the deadline for filing for the May primaries is March 8, a week from ne,xf Friday. : To date, there have been but four filings for major state of fices. These ; include two announced candidacies for congress Charles T. McPhcrson (d) of Portland, who seeks to succeed Homer D. Angell (r) in the third district, and Rufus E. Wood (d) of Oregon City, who would oppose Walter Norblad (r) for first district rep resentative. Four File for Court Posts The others are Henry Black (r) of Portland, a painter, who seeks the governorship, and Rex Put nam (r) who has filed to succeed himself as state superintendent of public instruction, a non-partisan office. Four candidates ' for circuit judge have sent in their declara tionsHerbert K. Hanna, Jack sonville, 1st district, Jackson and Josephine counties; John R. Mears, Portland, 4th district, de partment No.! 5, Multnomah coun ty; R. Frank Peters, Hillsboro, 19th district, Tillamook and Washington counties, and Howard Zimmerman, Astoria, 20th dis trict, Clatsop and Columbia coun ties. Circuit Judges' also run as non-partisans. All candidates for circuit judge who have filed up to this time are incumbents with the excep tion of Mears who is now district judge of Multnomah county. Jones, Chad wick File Two of Marlon county's repre sentatives also filed for re-election Saturday H. i JL Jones and W. W. Chadwick, both republi cans. . Truman A. Chase, Eugene, now a member of the; house of repre sentatives, filed for, state --senator, 3rd district, Lane county. Other filings Saturday in cluded: Carl C. Hill r Days Creek, for state representative, 15th district, Douglas county, Robert V Chrisman (r) Enter prise, for district attorney of Wal lowa county. Officials announced Saturday that candidates desiring space in the voters' pamphlet, to be issued in advance of the primary elec tion, must file their statements with the state department by March 8. Fire Destroys Railroad Trestle MT. ANGEL, Ore Feb. 22-(tf) Fire destroyed a wooden railroad trestle near the McKee station on the Southern Pacific's Wood burn to Springfield, branch late this afternoon, Mt Angel volunteer firemen reported, i . Damage of $4200 was estimated by railroad Officials, the firemen reported. Farmers in the vicinity joined the jfiremen in fighting the blaze. ! review in our court of orders, regulations or directives of any government bureau, agency or commis&ion which contravene or deny the rights ot any citizen." In expressions on problems pe culiar to the west, the conference had this to say: Public Land Land suitable for farming should be opened to homesteading, with returning vet erans granted preference; owner ship transferred to state govern ments of federal j lands "not es sential for proper federal pur poses." Farm and Livestock "We in sist that the American farmer and producer of livestock and poultry products i are entitled to the American market, and at prices which will! permit them to maintain American living stan dards." ! J Fisheries "We favor full pro tection of our fisheries whether Crowds GreelMuyor Curlcy FT" : 1 'V; to O ' ' VM BOSTON, Feb. 23 Mayor James with rsUed hat), free on bond after a sentence by a Washington, D.C court of six to 18 months: on mail fraud charges. Is greeted by a crowd estimated at 5000, and a braos band, that it policemen couldn't keep from tumbling against him with yells of "Boa ton loves J9U, Carley." (AP Wlrephoto to the Statesman) Walkout May Cut Utilities in Houston, Texas HOUSTON, Feb. 23 -(A- D. W. Maxwell, secretary of the Houston building and trades council, announced today that Houston's water supply and most of its major utilities will be cut off at 5 p.m. tomorrow by strik ing unions, all AFL affiliates. City officials however said that despite withdrawal of workers and picketing of the plants, vital water and sewage plants would be kept In operation. Early today the city was grant ed a restraining order to Jceep strikers of the city-county em ployes union and the hoisting en gineers union from picketing the city's water plants, sewage and gas plants and garbage truck lots. The unions recognized the injunc tion and withdrew pickets where notified. A third union, however, the electrical workers union, was not named in the injunction, and A. J. . Bannon, business manager of the union, said its members would "take over the picket lines Sun day morning." WHY ASK QUESTIONS A three burner electric range was left by mistake in a garage at 1825 N. Cottage it., Friday af ternoon, C. A. Kobow, owner of the garage, reported to police. He had no explanation of the deliv ery. Silverton Sector Sight Submarine? Has anyone sighted a submarine in Silverton? Probably not, but nonetheless a small submarine detector device was found on a farm three miles southeast of Silverton, dangling 80 feet above ground In a tree by a gaudy red paper parachute. Sheriff Denver Young now has the VS. military gadget In his office at Marion county court house, with no claimer to date. The device Is a small "radio sonde" transmitter and modulator used in detecting hostile submar ine by radio. (Editor's not Despite lining of cen sorship, Th Statesman to bt on the safe side prantet the above story to naval intelligence for clearance before Its publication. The navjr said it was unable to give formal release, but It did not requert withholding. There fore, with slight deletion which may or may not be of military Importance, the story herewith Is presented). by domestic regulation or treaties." Reclamation "We oppose any programs which seek to set up in the river basins of the nation, so called valley or regional federal water authorities." Weflern Industries The re publicans urged immediate dis posal to private industry of gov-Crnment-owned war plants. : Monetary "We favor a curren cy with a metallic base, using gold and silver." Alaska "We urge that a wider measure of local self-government be granted to the territory of Alaska." Housing "The same adminis tration which exported scrap iron and ore UP Japan is now export ing our American lumber all over the world. We condemn that practice," M. Curler of Boston, Ma., (center 'Free' Gib--Service Offered in Dayton DAYTON, O., Feb. 23 m "Free" cab service to any point In Dayton was being offered to day by striking Yellow Cab Co. drivers, A fleet of five "free cabs" cruising through the city this morning was expected to be in creased to 25 by the end of the day. Drivers said they were not permitted to charge their pass engers but could accept tips. The strike of drivers, affect ing half of the city's cabs, be gan last Saturday over the dis missal of a driver. 30 Vancouver Housing Units AddedJo Quota A new possible site for veterans' housing in Salem Is under consid eration by the city housing board, it was disclosed Saturday, It was also announced that Wil lamette university has been allot ted . 30 additional housing units from Vancouver barracks by the war department, bringing to 120 units the total so far made avail able to Salem. Sixty are for the city and 80 for the university. The new site under considera tion is a 20 acre plot on S, lflth st. Inside city limits, owned by Otto Klett. It is known as the Oak Park addition. Water and sewer facilities already exist there and the site is considerably closer to the university than the previously-suggested fairgrounds site, it was pointed out. Jason Lee Memorial Site Development Diftctiftged at Meeting MISSION BOTTOM, Feb. 23 (Sperial) -Development of the Ja son Lee memorial site near here as a park similar to,Champoeg but wUJi the addition of a swim ming pool was discussed at a meet ing of the Community club here tonight. The site covers about six acres of the location of the original Ja son Lee Mission and Is owned by Willamette university. Encouraging Information rela tive to federal aid for the project was reported. Mrs. Beryl LaFollett was 'Selected to interest Willam ette university and Oregon con gressional representatives. for Positions in Election Race Tmniaii Readies For Rc-Election By Jack Dell ; WASHINGTON, Feb. 23 -Of) President Truman appeared to day to be consolidating democrat ic support behind his expected bid for rcnomination in 1948 de spite the turbulent intra-party argument over his nomination of Edwin W. Pauley as undersecre tary of the navy. When Secretary of Interior Harold L. Ickes quit the cabinet in a well-publicized rage, there was much wagging of heads by Capitol Hill democrats. They thought this might be the begin ning of a disintegration in the loosely-bound alliance of elements that kept President Roosevelt in Office so long. : But a recent declaration by Secretary of Commerce Henry A. Wallace that he will stay in the India Riot Casualties Mounting Gbandi Appeals For Violence End, Army Reinforced BOMBAY, Sunday. Feb. 24 (A') Two hundred persons were killed or Injured during a night of riot ing and clashes between Hritinh troops and civilians which ub sided only in the pre-dawn hours today after soldiers opened fire cn surging mobs in the Dadar suburb area of northern Bombay. Police said that many of the night's casualties were fatalities and that "ninny" bodies were still in Itombuy hospital awaiting re moval to morgues. The unofficial casualty list, not including the night's toll, for the three days of bitter street fighting included 250 dead and "well over 1300" Injured. Elsewhere Quiet Gunfire und street rioting was confined almost entirely to north ern sections of the city during the night and elsewhere Bombay was quiet The latest outbreak came after Mohandas K. Gandhi had ap pealed to Indians to end "this thoughtless orgy of violence," and after the surrender Saturday morning of Indian sailors whose mutiny on Thursday had touched off disorders here and in other cities. Several hundred troops had been rushed into the Dadar area Saturday, and field pieces were mounted. The suburb w a s de scribed as tense after a textile mill and a train had been set on fire. Seise 4 Square Miles Crowds had seized control of a four square mile area in northern Bombay, where the main rioting had moved from the downtown section. British troops and police fired on the rioting crowds more than a dozen times. Sympathy strikes, in which 300,000 workers took part, were called here and in Cal cutta. Substitute for Draft Sought WASHINGTON, Feb, 23-W-A hunt for ways to permit a halt to the draft on May 15 began today on Capitol Hill. The draft act expires then and although President Truman has asked for its continuance' many legislators would like to avoid that. The search for some substitute was touched off by a proposal of Chairman Carl Vinson (D-Ga) of the house naval committee. He told newsmen he will Intro duce next week "m bill to create a special occupation army of 600, 000 volunteers. They would be obtained by added inducements, including double pay, free trans portation overseas for their fami lies and yearly 30-day furloughs. Missing Ship Bow Believed Located KODIAK, Alaska, Feb. 2S-AV Word was awaited here tonight from the navy fleet tug Sarsi, dispatched from Adak to investi gate a radar contact SO miles dis tant which navy Alaska sea fron tier officers hoped might be the bow end of the broken Russian tanker Donbass. The S. S. Puente Hills still has in tow the aft end of the vessel carrying 23 persons who have refused to be taken oit. Another 23 had been taken off by the American tanker. Cabinet and support Mr. Truman far renomination put a new light on the situation. Wallace and Ickes have been teammates in past enterprises. The supposition was that if there was to be a break between party old-liners and the other elements that backed Roosevelt, Wallace would go out of the cabinet in the next few months and possibly challenge Mr. Truman for the nomination. At the time the Ickes furore was at its heights the president had to deal with another problem that Involved the same possible cleavage. This revolved around the-kitchen cabinet' move that made Chester Bowles stabiliza tion director. At one point Bowles might well have gone storming out of gov ernment service in an argument over the powers to be pranted him. But Mr. Truman solved that to XBuBima-BinispDiredF Jap BamtiM Umds LONDON, Sunday, Feb. 24-P)-Tb Mo,cow radio said earjy today that remnants of Japanese troop? in Manchuria had been . '. . 1 . 1 an IStl - . , ;cuiryiiiK oiu mrfje. Diinuu airi.rrt r mjvici forces Since mid-November, '"with the hHp and 1 1 1 i hip of reactionary ele ments in China itself." The broadcast was thi firht app;irnl Russian reaction to Convicted WASHINGTON, Feb. 23 Capt. Charles B. McVay, captain of the emsler Indianapolis, con victed of negligence In the loss of the ship. The navy abolished the penalty against MeVay In view of his "outstanding pre vious record." Navy Convicts McVay, Wipes Out Penalties WASHINGTON, Feb. 23-(4")-The navy today announced convic tion of Capt. Charles B. McVay on a negligence charge growing out of the loss of the cruiser Indian apolis, but took tha penalty off and assigned a sharelof the blame for tardy rescue operations to ioiv shore officers. .. The conviction remains as part of the permanent record of " the 47-year old officer, but the pen altythat he be set back 100 posi tions in the order of promotion becomes Inoperative in viewiof McVay's "outstanding p r e v i o4jps record." The captain has been "re turned to duty. A court martial found McVay guilty of negligence on the ground that he failed to steer a zigzag course when conditions of visibil ity and tne iact that his ship was in area where submarines might be encountered required such a course. He thus "suffered a vessel of the navy to be hazarded," the announcement said. .6 V i VW,: I i'V. 1 li urn i ii ii m i tf--- - .ii.i.zt Marion County Jobless Claims Drop as State Totals Increase 1 By Conrad C. Fringe SUM Writer, The Stataaman With nearly a week (to go, February has established a new high for both veteran and civil ian unempl o y m e n t allowances paid throughout the state while Marion county claims nave dropped off, the state unemploy ment compensation commission reported Saturday. State payments to workers reached $1,983,567 or $103,765 greater than for the entire month of January, .while federal checks to veterans amount to $677,668 or the outward satisfaction of all. He gave Bowles most of the au thority Bowles wanted, but kept Reconversion Director John W. Snyder as top man in the set-up. Although Snyder is not the most popular official among Cap itol Hill democrats, his retention reassured in part the wing of the party represented by southern legislators. But Mr. Truman still has the problem of what to do about fill ing Ickes' post. He apparently has made it plain to those who have talked to him that the man chosen will have to bear the "liberal" stamp. The suggestion has been made that the president might leave Oscar Chapman, named as acting secretary, In the post Chapman, who supported Wallace for the vice presidential r nomination in 1944, would be acceptable to the forces exemplified by the secre tary of commerce. gruv ii h !tiUition In China for the evticti.it.jiiri of Russian furccs from Man' ("Uiri;,. Quofrtr Ts.su dispatches frnm Man huru.. the Mohcow radio said the "itu tionariex" sent their rep resentatives to Russian-occupied territory "to develop their activity aghint-t trie Soviet union." "The br.ndit forces consist for the most part of Japanese officer and m-n f the former puppet army t Mnchukuo and many of the U.ixJit. arretted by soviet, authori-tie. declare they are mem bers of Kucmintang (Chinese na tionftlift imrty), which they joined In 1945," the broadcast said. ? "They aJo declare that their units v.-re ' formed for a fight against the democratic organiza tions of China and that they re ceive their orders from a center that e; especially created for 5. this criminal activity." The radio said sovl soviet official and troops had been killed in at tacks m Mukden, Tultsihar and other cities and in several Inci dents since Feb. 1 in Harbin. The broadcast did not charge that the Chinese government wnf directly involved, but declared it "clearly supported the reactionary press in libellous attempts" to blame the red army command for the murder of a Chinese engineer in January. State Boards View Barracks KLAMATH FALLS, Ore., Feb. 23-;p)- Detailed inventories of the $8,500,000 marine corps, barracks here were asked today by the Or egon state board of higher educa tion and the state emergency board tfttr sn inspection tour t-t the hujre military establishment that mi j become a school for vet erans. The request for a complete statement of terms and facilitie was mitrie by the board after Dean Walker, chairman of the state emergncy bord, told the educat ors plans for financing the bar racks a an Oregon school unit cannot be considered until a re quest for finances had been filed. Wallir Max. ..... SI IS M SJ MM. 41 45 43 43 43 Rain Mt IS .SI .00 SsUm Eusrne . Portland Seattle San rrncco M Wlllamrtte rlv-r J.7 ft. FORPX'AST (fiom US. Weather bu reau. McNary fld. Satofli): Cloudy today, nrraatonal scattered showrrt. Little change in temperature. Mast mum S7 (Mgree. $151,318' more than last month. Marion county will probab'y not go along with the rest of the state in claim totals for February compe n s a 1 1 o n commission spokesman said. So far this month the Salem office has paid out 3387 checks amounting to $54,700 in state claims, far below January's entire total of 5058 checks for $82,601. Payments to veterans over the state also established a new week ly high with 15,322 checks for $303,000, an increase of 23 per cent over last week's high mark. In Marion county for the first time veterans claims totaling 1058 topped the civilian check mark of 1001 for last week. Indi cations are that February read justment allowances will reach the million-dollar mark for the first time throughout the state. Nearly 60.000 unemployed cf vilians now have 1946 elntms on file with the commission, but fewer than 40,000 have received benefits. Only a few unemployed have drawn their maximum amount, as five check of $10 each Is the lowest "maximum" under the new schedules of benefits. About 29,000 Veterans, or about 40 per cent of those returning to Oregon have applied for benefits, and most of them have received at least one check, the comrlssion--reported. HEAT VJAVE' IN SALEM The warmest day since Decem ber 4, with a temperature of 63 degrees was recorded in Salem, Saturday. This Is 19 degrees above normal 44 degrees for February in Salem, according to the weather Bureau i