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About The Oregon statesman. (Salem, Or.) 1916-1980 | View Entire Issue (Feb. 26, 1994)
TFffiOOOa ii Continuing "The Danubians": Hayek's "Road to Serfdom" may well be considered at the same time with Polanyi's "The Great Transformation." Both authors re sided in Vienna and lectured and wrote' on economics in the period around 1930. Their thinking de veloped very differently; and the two books present contrasting views on the subject of economic freedom. The Hayek book was a "dis covery" in 1945. It was reprinted in condemed form in the Reader's Digest and this reprint was widely circulated. It was an answer to the business man's prayer: A profes fior's repudiation of the new deal and socialist planning. Based on his observation of the growth of totalitarianism in central Europe, Hayek views with grave alarm the development of central or gov ernment planning, regarding it as leading to the dictatorial state. ' To quote: "There can j be no freedom of thought, no freedom of the press vhere it is necessary that every thing should be governed by a single system of thought In theory socialism may wish to enhance freedom, but in practice totalitar ianism is nothing but consistent collectivism, the ruthless exploita tion of the principle that 'the whole comes before the individ ual' and the direction of all mem bers of society by a single will supposed to represent the whoie." Hostile as I have been to the centralized state, I confess (Continued on editorial page) Death Takes Deputy Clerk Of High Court Henry Merman Kloepping, who had been deputy clerk of the state supreme court since 1930, died at his home, 471 N. Winter st., Sun day after a three-months illness. He was 65 years old. Kloepping was born in Ne braska and came to Oregon first in 1910, studying at' Willamette university. He left to become Vice presidcnTTT the Globe Business College in St. Paul, Minn., re turning to Portland in 1013. He moved to Salem In 1916 to work in the county assessor's of fice and as deputy county clerk. He was graduated from Willam ette Law school and admitted to the bar in 1923. Kloepping married Laura Mae Bean in St, Paul, Minij. She died 16 years ago. His second wife, Wilna Gialer, survives ihim. He was a member of the First 'lethodist church and of the Ore gon Bar association. Surviving in addition to the vidow are a daughter,, Mrs. Mor ris C. Croker, Bremerton, Wash.; a brother. F. W. Kloepping, Fair fax, S. D.; a sister, Mrs. George H. Klaus, Farminjtton, Minn., and two grandchildren, William and Jean Croker, Bremerton, Wash. Services will be held Wednes day at 1:30 in the W. T. Rigdon chapel. Friends are asked to omit flowers. Dr. Joseph M. Adams will officiate and concluding services will be at City View cemetery. Lumber Firm Changes Hands i SWEET HOME, Feb. 2S-(Spe-eial)-Herbert Templeton Lumber company of Portland has bought the Lucas Lumber company and has taken possession. Oliver Ra malia, formerly of Eugene, is gen eral superintendent' of the new company. Paul Lucas, who established the mill here several years ago, re tired because of health. His son, Richard Lucas, who. has been as sociated in the enterprise, will re main on the Job tor the time be ing. Animal Crackers By WARREN GOODRICH Too never no wrong if you follow in your father's footsteps!" Labor Balks New Wage-Price WASHINGTON, Feb. 25 -disorganized labor balked at wage control features of President Tru man's new wage-price policy to day while funds for enforcement were threatened and congress heard living costs may soar anoth er 10 per cent. ' These developments came thick and fast: 1. The CIO told j Economic Sta bilization Director Chester Bowles it "could not commit itself to the order calling for approval of wage increases by the wage stabilization board. It proposed jthat the board remote this requirement by a resolution. j 2. The AFL foresaw new strikes among its unions which had set tled for less than the patterns which might be set, by the board. 3. The senate appropriations committee cut by jhalf the funds the house had voted to operate the OPA and the civilian produc tion admin istration. for the? next four months. 4. Chairman Mariner S. Eccles of the federal reserve board told the house banking committee there is "some possibility" of a further rise of 10 per cent in the cost of living as a result of the new presidential wage-price poli cy, j Mr. Truman took an essential State Troop Trouble Feared in Tennessee i . I ' i ; i : COLUMBIA, Tenn., Feb. 26.-;P)-(Tuesday)-Squads of state militiamen from surrounding middle Tennessee towns mounted riot guns in Columbia's public square today following an outbreak of shooting in which four policemen were wounded. - Sheriff J. J. Underwood said the disturbance started in this town of 12,000 last night after the arrest of a negro woman and her son on assault charges. Underwood said the two, Gladys Stephenson and her son, James, were accused of shoving a white radio repair man, William Fleming, 23, through a plate glass window on the public square during the afternoon. Tension mounted as the night wore on and state safety commis sioner Lynn Bomar, under orders of Governor Jim i McCord, sped here from NashviHe, fifty miles away, with eighteen state patrol men to assist Columbia's eight man police force. They were joined later by state militia troops'- ordered out from surrounding towns and as far away as Chattanooga and Knoxvil le, 100 and 150 miles respectively from Columbi4v , Shortly after midnight acting adjutant general Hilton Butler said in Nashville that between f ur and five hundred state troops were already In Columbia or on the way. At that time a report spread in Columbia that a group of negroes were marching on Columbia from Mount Pleasant, twelve miles away, and a detachment of militia was sent out by Brig. Gen. J. N. Dickinson, commander of the state troops, to meet them. The sheriff listed the Injured officers, who are in King's Daugh ters hospital, as police chief J. W. Griffin and patrolman Sam Rich ardson, Vernon Stifel and Will Wilsford. The latter was believed injured critically. The men were shot. Sheriff Underwood said, as they sought to keep order early in the night. 3 Salem IWeii In Fraud! Trial PORTLAND, Ore., Feb. 2S-(Fy-The trial on mail fraud charges of three Salem men and a Port lander accused of misrepresenting "oyster farm" enterprises began today in federal court here. In a 42-page indictment the government accuses Edgar Robert En-ion, John R. Barton and Glenn R. Munkers, Salem, and P. E. Blackman, Portland; of obtaining more than $300,000 from north west investors. The government has subpoenaed 68 witnesses for the trial, mostlyf . Willamette valley farmers and Oregon and Washington coast res idents who are listed as investors. The four defendants pleaded in nocent before Judge: James A. Fee as the trial got under way. Aviation Board Opens in Salem The state board of aeronautics of which Lee U. Eyerly, Salem flyer and industrialist, is chair man, Monday opened offices on the third floor of the state capitol building here with; W. C. Hill, chief engineer for the board, in charge. Leo Davaney, Portland, is director of the board. Entire headquarters of the board will be moved to Salem from Portland on April 1. Hill, formerly of St. Paul, Minn., said his duties would comprise largely the location of airfields under the federal airport plan,; SOVIET FORCES MERGE MOSCOW, Feb. 25-(P)-The three armed services of the Sov iet Union the array, navy and air force were centralized in a single commissariat of the armed forces of the USSR tonight, with Generalissimo Stalin as commis sar and supreme commander. Policy step in carrying out his. policy by issuing an executive order re-establishing the office of economic stabilization as it had existed dur ing wartime. Bowles was given the job of director A high government official, in close touch with the labor situa tion, declared the labor, opposi tion indicated a j "build-up" to withdrawal of labor members from the WSB. The wage board has two public members, two from management and two from labor one each from AFL and CIO. Eccles, federal j reserve chief, noted that living costs had risen by 30 per cent since pre-war days, and said they might climb anoth er 10 per cent tinder the new policy. He urgently supported the administration drive for continua tion of price controls, warning that scrapping them might have "disastrous" consequences if peo ple lost confidence in the purchas ing power of the dollar. ' He proposed, continuation of OPA for at least another year, a substantial increase in the capital gains tax to put the brakes on speculative buying, and that the government should refrain from creating further bank credit by bringing about a balanced bud get and beginning to pay off some of the nation's debt as soon is possible. s Called as Race Court Frees 2 Civilians in -Hawaii Prison WASHINGTON, Feb. 25 -(JF) Civil courts and their safeguards are "indispensible to our system of government,' the supreme court said today in ordering re lease of two civilians convicted by military courts established in Hawaii after Pearl .Harbor. In a six to two decision, the court held that i the military courts, set-up under martiaUaw lacked authority to try civilians charged with violating civil laws. It ordered release of Harry E. White, Honolulu stock" broker charged with embezzling stock, and Lloyd C. Duncan, Honolulu shipf itter charged with assault ing two marine sentries. . : r Many Damage Claims Expected After Order HONOLULU, Tebl 25 -()- At torneys predicted j today that claims for damage may be filed in many of the 37,500 civilian cases tried by military courts in the islands as a result of the U.S. supreme court decision declaring such trials illegal. Oahu prison records show" that about 400 civilians sentenced by military authorities were im prisoned and that fines and reve nue of the provost court and liquor control office totaled $1,500,000, including $1,072,000 in fines. a. : C. T. Stevenson, warden of Oabu prison, said four civilian men convicted by military tri bunals under martial law still were in his custody. One of them is serving 30 years on conviction of a murder charge, another is serving seven years for robbery, a third la serving 15 years on a murder conviction and the fourth was given 15 years on a man slaughter conviction. Highway Commission Oders Suit for New State Park, Accepts 5 Road Work Bids PORTLAND, Ore., Feb. 2S.-VP)-A condemnation suit to gain pos session of 55 acres along Wallowa lake for a proposed state park was ordered today by the Oregon high way commission. ; The commission reported the suit against T. II. and Helena Williamson resulted from refusal of the owners to sell the track for $10,000 which commission apprais ers consider a fair price. The commission said the owners asked $25,000 and said that Mrs. Irene Wiggins, owner of another 51 acre tract to be used in the 106 acre park area has offered to sell for $3000. .. Ban nighway Parking The commission ruled that mot orists can no longer park on the shoulders of state highways except for emergencies. Such parking was prohibited on the Pacific highway across from the "public mart" north of Eugene. Engineer R. H. Baldock was instructed to study whether stop signs at railroad crossings are necessary. Baldock declared 1 the signs are generally disregarded and have become traffic hazards 9 . NINETY-FIFTH YEAR 10 Brewster Calls For Arms Ban Asks U. S. Policy To Forbid Use of American Guns WASHINGTON, Feb. 25-(vT)-A demand that Great Britain be in structed not to use American guns to "shoot down Jews in Palestine" was voiced before the senate de fense investigating committee to day by SerJator Brewster (R-Me.). Witnesses testifying before the committee on proposed financial settlements with Britain said such a ban legally could be enforced but declined to pass on policy. Brewster told a reporter he wants Secretary of State Byrnes to state this country's stand. 7 The reported use of American war equipment by Britain in quelling uprisings in Palestine, India and The Netherlands East Indies came into the committee's discussion over $4,705,000,000 in lend - lease military equipment still held by the British. U.S. Keeps Title Thomas B. McCabe, foreign liquidation commissioner, told senators that since the United States retains title to this equip ment and can reclaim it, it had been decided not to attempt to sell it to the British. If it were sold, he pointed out that the British could make any use of it -they chose, including its resale to other nations. As the situation stands, Britain cannot resell without prior American ap proval and turning the proceeds to the United States. Alleges Use in Outbreaks Brewster inquired if this coun try legally" could "sterifize" the equipment In question, by forbid ding its use in colonial outbreaks. He told a reporter after the hear ing he is certain such equipment has been used in these circum stances. Hubert Naviik, state depart ment expert, and Benno Smith, legal counsel for McCabe, said there is no question that this country can impose any restric tions it elects on use of the goods in question. Clothing Drive In Salem Nets 70,000 Pounds Nearly 70,000 pounds of cloth ing were collected in Salem alone in the recently-closed United Clothing drive, a summary dis closed Monday. . The totals showed: 182,000 gar ments; 0000 pairs of shoes; 300 pieces of bedding; 2889 cartons and packages; 68,930 pounds. Fred Starrett was general chair man, H. L. Braden secretary, with sponsors including the junior chamber of commerce and the Ki wanis. Lions and Rotary clubs. Collection depots, included churches, many stores, fire -stations and the PGE. Those in charge paid special tribute to Clarence Shrock for aid in transportation, E. H. Craven for work with Boy Scouts in col lections, and Floyd Seamster for leading the sorting and packing work. Clothing for the drive may still be left with the Salvation Army. rather than safeguards. Secretary of State Robert S. Farrell, Jr., in a letter, urged they be maintained. The historic Knapp hotel at Port Orford, boarded for years, will be sold for Junk, the com mission decided. A request from an unnamed Salem architect to move the building to state prop erty nearby was refused, on the grounds that it would obstruct an ocean view. A survey was ordered on a $150,000 improvement project for the Wasco-Heppner highway west from Condon. Resurfacing of 15.7 miles of secondary highway be tween Crow and Lorraine was ap proved. The commission authoriz ed that several curves on the Necanicum highway be widened to accommodate 58-foot log loads, providing truck operators do not operate on the Neahkanie moun tain road. Accepts 5 Low Bids The commission accepted low bids on five projects, but all bids on a Sherman county project, for surfacing of a Fulton Canyon Wasco highway section, were re jected as too high. resit PAGES Salem, Germans Leaving Prinz Eugen I - ?' PHILADELPHIA, Feb. 25. German crew members of the former German cruiser Prim Eugen disembark from the vessel at the navy yard here yesterday with their gear te stand master prepara tory im leaving the ship permanently. The men will return t Germany. The ship will be nsed tn atom bomb testa. (AP Wire phot t the Statesman) Navy Probes Reported Farewell Party for PWs NEW YORK, Feb. 25.-YP)-Nine German nayal officers and 267 crew members who the Philadelphia Record said took part in a "gala farewell party" aboard the German heavy cruiser Prinx Eugcn yesterday, sailed today for Europe on the naval transport China Rejects Russian Bids In Manchuria CHUNGKING, Feb. 25.-VF)-China restated her sovereignty over Manchuria and In effect re jected new concessions to Russia tonight Generalissimo Chiang Kai-shek declared that he hoped the Manchurian problem would be solved, because world peace depended on Chinese-soviet co operation. This first official Chinese state ment of Manchurian policy said simply that Chiang had instruct ed his headquarters in Manchur ia to base negotiations with Rus sia on these three principles: 1. They must be In accord with Chinese law. 2. The Chinese-soviet treaty of last Aug. 14 must be respected. 3. There must be no conflict with international treat ies to which China is a signatory. Chiang chose the occupation, powever, to commend the patrio tism of students, who have been demonstrating vociferously against the continued Ruaaian occupation- of Manchuria. At the same time he warned against let ting emotions supercede reason, saying that hasty action might impair China's prestige nd need lessly increase the government's difficulties. OSC EX-PREXT 18 CANDIDATE CORVALLIS, Feb. 25--The republican ticket today boasted the candidacy of Dr. George W. Peavy, president emeritus of Ore gon State college, as Corvallis mayor. Successful bidders: Clatsop county Repairs of Vine Maple bridge over Nehalem river on Fishhawk falls second ary highway. Philpott'& Bucking ham, Portland, $16,680. Linn county Resurfacing eight miles of Lebanon Sweet Home section pf Santiam highway. Warren Northwest company, $83, 574. Coast Illghway Grading Lincoln county 3.10 miles of grading on Spencer creek Agate Beach section of Oregon coast highway, Berke Brothers, Port land, 277,810. Umatilla county Eight miles of improvement on Weston moun-tain-McDougall section of Weston Elgin highway, to E. C Hall and company, $175,985. Washington county 4.58 miles of improvement on Campbell bridge - Hazeldale section of Farm lngton highway, Porter W. Yett, Portland, $109,690. Lloyd F. Legarie, Salem, offer ed 10 per cent of proceeds plus rental for the privilege of operat ing the lodge at Silver Creek falls state park. His bid was referred to the engineer with power to act. fOUNDBD 1651 Orecjon. Tuesday Morning, February 26, 1946 TfV Gen. A. E. Anderson under ma- rine guard. The Germans arrived today by train, while the Philadelphia na val yard investigated what the Record said was "as fitting a fare well party is any prewar bon voyage party in the United States." A crowd of 500 persons were at Pennsylvania station to see the Germans as they were unloaded, one. car at a time, under supervi sion of marines armed with riot guns. Some spectators tried to give packages of food to theXJer mans, but were kept at a distance by guards. The Record said "despite navy regulations, liquor flowed on the nazi vessel. Flush-faced groups of Germans and Americans raised their voices in German beer hall songs. And in corners girls held hands with the German sailors and conversed in warm whispers. Capt A. H. Graubart of Los Angeles, commanding officer of the American crew aboard the Eugen, said the Record story was "a perversion of truth" and de clared there was "absolutely no whisky" on board Charge Mother With 'Kidnap9 Of Own Son A 23-year-old mother, charged with kidnapping her own sort, land her J 0-year-old stepfather, ar rested on similar charges, were re leased by Joseph' Felton, justice of the peace, Monday night, on their own recognizance on condi tion that they take the child back to the Curry county district at torney. ' Nadine Fltzhugh and Curtis Thrall, arrested on a felony war rant, Monday, at the Lakebrook hopyard where Thrall has recently been employed, allegedly removed Mrs. Fitzhugh's four-year-old son from the Gold Beach home of his grandparents, in whose custody he had been placed by court order. The boy's father was committed to the state penitentiary last week. Bishop Baxter on Church Committee ATLANTIC CITX N. J., Feb. 25.-iir)-The council of Methodist bishops at the concluding session of its annual meeting today named a committee to study "the question of protestantism as it re lates to the Roman Catholic church in matters that concern Methodism." Bishops Lewis O. Hartman of Boston; Bruce R. Baxter of Port land, Ore., and Paul E. Martin of Little Rock, Ark., were appointed a committee to assist In a pro posed expansion of the Metho dist's public relations department. Weather Max. Min. Rain I5 IT .! SS M M .. S3 -i 40 trace .M 3 trace ...64 M Salem Eugene Portland Seattle San Francisco Willamette river 3.2 ft. FORECAST (from UJ5. weather bu reau, McNary Held. Salem): Partly cloudy today. Highest temperature 54 degrees. Price Last vuODDafliLe Act Averts JPdweir Stroke Dim East Pittsburgh Union Will Arbitrate; AFL Ont of N. Y. Transit Walkout PITTSBURGH, Feb. 25.-(-A power strike scheduled fcr 12:01 a. m. tomorrow was postponed tonnht for one week during which an attempt will be made to arbitrate wage difference? between the Duqucsnc Light co., and its independent union. George Mueller, president of t!hc union, made public the text 'of a statement which said the group "decided that the Strikers Agree To Arbitrate In Portland PORTLAND, Ore.. Feb. 25. (A CIO cargo checkers notified the Portland waterfront employers' as sociation late today they were will ing to arbitrate their grievances and return to work. Members of the supercargo and checkers union were sent home this morning after reporting for work in the face of the operators' announcement the union contract was cancelled as of 8 o'clock this morning. Longshoremen and walk-J ing bosses, members of affiliated waterfront unions, were expected to halt loading, but continued to handle marine cargo throughout the day. The arbitration offer, signed by CIO business agent II. W. Hanks declared the union wanted "to continue to work . . . and bring about a settlement" of the month old dispute over number of cargo checkers to be employed by ship ping companies here. R. E. Ferguson, manager of the employers' group, said the union contract gave shippers the decision on how many checkers were to be hired. The : union refused to direct cargo handling for the Hawaiian-American line vessels since last month because the company assigned two checkers to each ship instead of the port custom of one man to each hold. Kick-off Lunch Slated for Red Cross Drive Kick-off meeting for workers who will conduct the annual American Red Cross fund cam paign in Marion county will be held Friday noon at the Marion hotel. Friday is the opening date for the drive in which about 1000 persons in the county will take active part in the campaign for $66,000. v1 A general discussion and ques tion and answer period will fea ture the Friday luncheon meeting, with Or. E. E. Boring, general fund campaign chairman, presid ing. Dr. G. Herbert Smith, presi dent of Willamette university, will give a short talk. Justice George Rossman, chairman of the Mar lon county 'chapter of Red Cross, will assist in the question and an swer session. Heads of all divisions in the campaign will meet at luncheon Wednesday to outline drive pro cedure. Bus Service for Keizer District To Start Friday Oregon Motor Stages will in augurate bus service from State and Commercial streets in Salem to Keizer school, effective Friday, March 1, it was announced this week by A. L. Schneider, general manager. The initial schedule calls for 10 round trips dally, starting at 6:45 a.m. from Salem and 7:15 a.m. from Keizer. Sun day's schedule starts an hour lat er than week days. Schneider said the new plan was experimental but would. be made permanent if found justi fied after a -fair trial." Sweet Home Teacher Subject of Hearing Hearing was held before Rex Putnam, state superintendent of public instruction here Monday, in connection with a proceeding involving the release of a teacher In the Sweet Home, Linn county, school district, for conduct unbe coming a school employe. The Linn county school super intendent upheld the district school board whereupon the teacher appealed to the state edu cational department for final decision. No. lit strike that is scheduled is scheduled to start Feo. 26 be postponed one week and that a meeting: of the mem bership be held Friday, March 1. to ut-eide whether the wage iss.f be setOed by arbitration or strike " By the , Associated Pre si R. J. Tohmas, president of the CIO t'n.ttd Auto workers, chari er! Monday-in Detroit that "Presi dent Truman let us down by net st-eirg that the report of his faV flnmpp committee7 (in the Gen eral! Motors strike) was carried ou." Trr GM f..ct finding panel ptr- p-ei more than a month ago tht i a IIP irnt 17.5 per cent) wage inrra.se be granted to settle the wtlkout of 175,000 production workers at GM plants In 2Tstat. The strike went into its 98th day-today (Tuesday) and UAW vice president Walter P. Reuthtr declared "thus far no agreement has been reached and none" is prev ently in sight." Thomas asserted In the auto motive dispute that the president "should sell the recommendation of ' the fact finding board to the people before calling the parti a to Washington,' after Senator Claude D. Pepper (D-Fla) sug gested that Mr. Truman call both sides to Washington in a new at tempt to settle the strike. The union has agreed to accept the 19'4 tent fact finding proposal but GM'i highest offer has been 18 'i cents. N. V. AFL Net la Strike In New York, Bernard Bropb?. prnMent of the AFL Tran.t Workers union, which claims 604 members among the city's 32.000 transportation workers, said hia group would not support a strike threatened "for after midnight to day (Tuesday) by the CIO frarj-port- Workers union, on demand" for a $2 a day wage increase and sole collective bargaining righ'.a for all tranf porta tl on workers ci the city-owned system. New York City municipal offi cials today interviewed 1000 city employes with engineering, me chanical and electrical aptitude for emergency use In operating the metropolis transit system in the event of city-wide tranJI strike. The fire and police de partment were alerted for po sible duty. Mayor William ODwyer said a state law forbade the city's ac ceptance of the union's principal demand, that of recognition s exclusive bargaining agent tot civil service employes. He added he considered a wage increase, sought by the TWU a -just cause Labor troubles also harrasseit other localities, with the follow ing situation by cities: Detrelt Faces Milk SherUge Detroit Already faced with a milk shortage as the result cf a five-day strike of CIO employee at 16 dairies, Detroiters were confronted today with a bread shortage as 13 of the city's large! bakeries shut down following a strike at one plant. About 50 per cent of the city's breed supply is involved. Supply of milk is VI peri cent of normal. Houston AFL officials called on 65 Houston, Tex affiliated unions, with claimed membership of 40,000, to stage a one-day holi day today (Tuesday) and join in a mass march on the cfty hall in protest against City Manager J M. Nagle's order that 700 striking AFL city employes be paid off. Nagle asserted the 700 ignored the? city council's back-to-work ultimatum and said "they wcren t fired, they quit" Philadelphia Acting Sheriff William J. Morrow said no at tempt would be made by police to Interfere today (Tuesday) in event f continued mass picketing of the strikebound General Elec tric Co. plant,'Where 1400 picket yesterday set up a solid two block line in defiance of a court injunction limiting picketing to "16 men 10 feet apart Salem AFL Petition Turned Down by NLRD WASHINGTON, Feb, 25.--An AFL local union's petition for collective bargaining agent at United Growers, Inc., Sal era. Ore., was turned down today by the na tional labor relations board The board, said 86 votes In election opposed the AFL union, while 50 favored it 5c