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LEASED WIRE WORLD
NEWS COVERAGE
CENTRAL OREGON'S DAILY NEWSPAPER
THE
33rd Year
Chiang Quits
As President;
Flies to Exile
Reins in China Turned to
Li Tsung-Jen, Advocate
Of Communistic Peace
Nanking, Jan. 21 Ul'iGcnoral
Isslmo Chiang Kai-shek retired as
president of China today and turn
ed the reins of government over
to Vice president Li Tsung-jcn, an
ardent advocate of peace with the
communists.
4 In retiring, Chiang left open a
i8F:iy to return to his leadership
f of "nationalist China if peace talks
9 ..:l.l II., i t.,r,wl w :
"temporary leave of absence"
rather than announcing his out
right resignation.
Boards I'lane
Chiang then boarded his private
plane and left Nanking in a dra
matic flight into exile. He stop
ped first at Hangchow, 150 miles
south of Nanking, to make a mo
tor trip to his home town of Geng
hua, in Chekiang province.
Two hours after Chiang's de
parture the communist radio re
jected the nationalist govern
ment's appeal for a cease fire and
said that any peace conference
must be held before the end of
hostilities.
The communist broadcast, al
though made after Chiang left
Nanking, obviously had been pre
pared before it was known that
Chiang was relinquishing his 21-year-rule
of nationalist China.
Decision Announced
Chiang said in a 300-word state
ment announcing his decision to
step down that he was leaving
Nanking in an effort to help speed
the nationalist government's
peace talks with the communists.
It was considered almost certain
that the communists would refuse
to discuss peace so long as Chiang
headed the government.
Chiang indicated his retirement
at the moment was temporary and
was not an outright resignation.
i used a Chinese word meaning
mporary leave of absence,"
dng the way clear for him to
return to his post and resume
command of the nationalist arm
ies should peace talks fail.
Vice President
It was not known whether Vice
president Li would be formally
inducted into office as president.
Mn a brief statement Li said he
rjwas "obliged" to take over the
presidential duties under article
y .,W9 of the Chinese constitution.
S This article provides that the
f. jvice president shall assume the
f -(duties of president in case the
v president resigns or is unable to
: ;jrarry out his duties for other rea-
rons.
An official source said that
JMadame Chiang, now in New
'iork on a visit to the United
r States, would return to China soon
lo join her husband in exile.
6 Dead in Crash
Of Alaskan Plane
Ar,l,,.,., Al T.. ,,,
P'he bodies of six persons were
f wl I .
'"""i '.v a ground party in Hie
.jweckage of an Alaska "Airlines
f'C-3 which crashed on the slope
J'f a mountain near Homer. Alas-l-..!.
150 miles southwest of here.
A A radioed report to the civil
feionautics administration here
f-tid the six victims annarentlv
hJd perished instantlv when the
fjMe crashed.
, spokesman for Alaska Air
.lines said five persons originally
u- listed as aboard the plane,
fie said a sixth passenger appar
ently hoarded the aircraft "some
jVhere along the route."
5 CAA officials and company of
.Jiuals who were in the ground
I'lrty finding the wreckage said
Jhey would conduct an on-the-spot
Instigation to determine the
f -nise of the crash.
i
Umatilla Fire Hits
City Hall, Stores
; 8 Umatilla. Ore., Jan. 21 HI" Un
J'flicial estimates todav placed
tl.image at .$50,000 from a fire
ii'H swept (he Umatilla city hall
;,Hnd adjoining stores yesterday.
J The blaze leveled a large one
:"ry building housing the state
liquor store, a barber shop, a
branch of the Umatilla counlv li
brary and the city hall.
4 All of the books were saved.
. though some were damaged.
""st liquor stocks also were sal
Viced. 5 Umatilla city headquarters will
b' moved temporarily to the old
;,y hall building.
j Ottt:c;ON'S HEAVY SNOW
I v" Wand, Jan. 21 ill" The wea
thev bureau said today that west
erf Oregon's snow storm was the
hivicst in six years.
Two Labor Parfies Fighting
T o Gain Upperhand in Israel
Extremist Groups Seeking Political Control
In Jewish State's First General Election
Tel Aviv, Jan. 21 (L'P) Two labor parties and the political
siicces.- or to the Irgun Zvui Leunii extremist group will fight
it out lor political control of Israel in the new Jewish state's
1 irst general election next Tuesday.
Other political parties, including the outlawed Stern gang
m its new guise of the fighters, also will put up candidates for
the l'JO seats in the new. constituent assembly. But the labor
party, the united workers' party and the Irgunists' freedom
nartv fire the onlv mn inr con
Democrats Said
Stealing Thunder
In Legislature
Bv Kli'ii'i Barrett
trnittd I'lVKh Stuff Ci.rreNii.nilrntl
Salem, Ore.. Jan. 21 HI'' Reuub
licans who control the 45th Ore-1
gon legislature were apprehen
sive today. They looked back at
I he efforts of the two-weeks-old
session and concluded the demo
era Is arc stealing the thunder.
The democrats concede that few
of their measures will get out of
GOP-cont rolled committees, and
if they did, would have little
chance of passing on the floor.
O'.'mos Conform
However, many of the demo
crats' measures conform to much
of the declared republican plat
form. Some would enact GOP
Gov. Douglas McKay's inaugural
address suggestions. Others look
like they were lifted right out of
the Oregon Republican club list of
resolutions.
For instance, the young GOP
club went on record favoring a
lieutenant governor. Senate dem
ocrats have introduced two bills
to accomplish this purpose. The
republicans have none. The same
is ruled with measures for fair
employment practices commis
sion,, and liberalizing veterans
laws.
Offensive Kept Up
The democrats kept up their
"offensive" today by introducing
a bill to create stand by rent con
trol for Oijegon that would take
effect if federal rent lids were
lifted in critical housing areas.
The measure, introduced by
Reps. Phil Dreyer, Howard Mor
gan and Phil Brady, and Sen.
Richard L. Neuberger, would
merely replace federal controls
and place them under jurisdiction
of an administrator appointed by
the governor.
A landlord could appeal and get
an increase if he could prove that
he was not making six per cent
on his original investment or was
not making as much as he was
during the last month federal con
trols were in effect.
House Kills Hill
The house yesterday killed its
first hill a measure introduced
by Rep. Joe Harvey, R., Portland,
that would have prevented min
ors by state law from entering
places that sell alcoholic bever
ages, including such places as
hotels, restaurants and grocery
stores as well as taverns and
night clubs.
The house alcoholic control
committee's majority report rec
ommended the measure be tabled
indefinitely.
Tvo-Y ear-Old Aids
wwitei tits"? -mvumm my
When Mrs. Joss Perrine, left, volunteered to help with the local
lundraising effort for the March of Dimes, her two-year-old son,
Pete, joined the corps of solicitors automatically. At right, Mrs.
Marion Poor, who was stricken with polio several years ago, Is
making a contribution to the fund. When Mrs. Perrine was without
a "baby-sitter." she took Pete with her on her downtown calls, and
l-'t hiiri hold the contribution container w hile she spoke to business
people on behalf of the polio campaign. Shoppers responded so
generouslv to Pete s plea to "Put money In here, please," that he
was made" official mascot for the collecting crew. The downtown
canvas has been going on this week under direction of Mrs. K. H.
Edmonson, chairman of a committer C Junior Civic league mem
bers. Mrs. Perrine is presidont of the club.
tenders.
Exiectcd Winner
Political quarters expect
the labor party, known as Ma
pai, to win a plurality if not
I a clear-cut majority. It holds
J four of the 13 cabinet seats
! in the p r e sent provisional
; government and its leaders in
: elude Prime Minister David 13en
i Gurion an: l oieign Minister
I Moshe Shertok.
I Mapai stands on the record of
its leaders in establishing the new
Jewish state, ft calls for a foreign
policy based on the United Na
tlons and friendship with both the
east and the west. Its opponents
say Mapai is too subservient to
the west, however.
Claims Credit
The united workers' party, or
Mapam, disputes Mapai's claim
for chief credit for the establish
ment of Israel. It is particularly
bitter over the government's dis
solution of Palmaeh, striking
force of the Jewish defense army
during the years of British man
date, and its incorporation in the
regular army. The Palmaeh staff
comprised almost entirely Mapam
oi'liecrs.
Mapam demands a more vigor
ous class struggle al home and
stronger ties ;n the rjreign field
with the Soviet Union and other
"progressive forces of the world."
Nevertheless, the party has re
fused to ally itself with the Is
raeli communist party, which
comprises about three per cent of
the electorate.
Irgtin's offspring, the freedom
or Heruth party, is led by Mena
hem Beigin, who directed the Ir
gunist campaign of sabotage and
terrc-rism against British troops
while Palestrae was under British
mandate.
Elks of Midstate
Leave for Coast
A busload of Bend and Red
mond Elks headed for the Oregon
coast this afternoon, to attend the
mid-winter convention of the or
der in Tillamook and participate
in activities that include a bowl
ing tournament. Two Elks' teams,
"A" and "B" squads, are making
the trip. In the "A" squad are B.
Cerveny, George Norcott, H. Pin
neo, L. Redifer and Jack Karg
man. Members of the "B" squad
are Steve Sleidl, H. Kopp, Leon
Devereaux, Sr., Leon Devereaux,
Jr., and Paul Sevy.
Officers of the Elks who will at
tend from Bend induce William
Stollmack, district deputy grand
exalted ruler, Oregon south; N. D.
Goodrich, exalted ruler of the
Bend lodge; A. E. Ledbetter, lead
ing knight; Charles Marsch, es
quire; William Reid, lecturing
knight, and Ralph Kerguson, sec
retary. in Polio Campaign
BEND, DESCHUTES COUNTY, OREGON, FRIDAY, JANUARY 21,
Plans for Dam
On Deschutes
Interest Area
Opposition and Support
Develop as News Breaks;
PUD May Prove Factor
Plans of the Northwest Power
Supply company to construct a
$12,000,000 hydioelectrlc plant at
the Pelton site in the mid-Des-chutes
gorge received backing In
some quarters and develojied op
position in others today, as the
proposal aroused wide interest in
Ce.nlral Oregon.
A preliminary permit for the
dam was filed with the state hy-
droeleclric commission in Salem
I yesterday, and within a few hours
j opponents and proponents of the
! plant, proposed to relieve the ser
ious power shortage in the Pa
cific northwest, were taking sides.
The plant would produce 75,000
kilowalts of power. Sponsoring
I he project is the Northwest Pow
er Supply Co., representing three
private power firms, Including the
Pacific Power & Light Co. The
application had hardly "cooled"
in Salem before it was announc
ed that fishing interests were set
to fight the plan, with Arnie Su
omela, Oregon state master fish
warden, Astoria, declaring: "We
are absolutely opposed to this
power project. It would ruin the
river.' Also, a fishing industry
spokesman said the federal gov
ernment proposed to spend mil
iums of dollars over a six -year
period to develop fish propaga
tion on the Columbia river trib
utaries below McNary dam.
Metollus Included
A major part of the fish-hatchery
program was reported expan
sion on the Metollus river, a trib
utary of the Deschutes.
It was also indicated that the
Central Oregon public utilities
district, headed by J. D. Donovan,
Bend, as chairman, would oppose
the move. "Our project is still
very much alive," Donovan de
clared today. He said the Central
Oregon PUD has several sites
tentatively surveyed oh the Des
chutes just above the Pelton site,
and declared that a dam at the
Pelton site would flood the up
river sites. A 200-foot high dam
is proposed at the Pelton site,
but water depth immediately be
hind the dam would be only 150
feet deep.
Donovan said that the PUD
application had been on file since
August, 1941, and that only re
cently the firm of R. W. Beck
and associates, Seattle, had been
asked to make a new study of
the plans, to bring them up to
dale. It was originally planned
to start PUD construction on Jan
uary 1, 1943, but the war made
a delay necessary, PUD officials
said.
Cost Estimate Made
The estimated cost of an 81
foot high PUD dam proposed in
1941 was $950,000, based on con
struction costs for that year, pro
(Continued on page 5)
Annual Meeting
Of Chamber Set
The annual meeting of Bend
chamber of commerce members
will be held on January 28, at a
luncheon at the Pilot Butte inn,
with Tom Humphreys, associate
editor of the Oregon journal as
speaker, it was decided at today's
meeting of chamber directors, at
the Pine Tavern.
It was also announced that
there will be a meeting of the
Deschutes county advertising
committee Tuesday, Jan. 25, al
5 p.m. The meeting will be held
at the chamber office and will pre
cede rtie January dinner meeting
of the Centra Oregon chamber of
commerce, to be held at the tav
ern that same evening.
At today's meeting, the board
relndorsed the program of the
Deschutes county community
chest, and authorized the appoint
ment of a special committee to
review all proposed solicitations
in the community and requests
for donations. Members will be
asked to refer all requests not
coming under the authority of the
community chest to the chamber
committee.
Guy E. Leonard, assistant man
ager of the western division,
chamber of commerce of the
United States, visited the direc
tors at their meeting today and
spoke to the group.
MEETING POSTPONED
Sons of Norway will not have
their regular meeting Saturday
night, officers have announced.
The meeting has been postponed
until Jan. 29, when the lodge will
sponsor a showing of movies on
Sweden and Norway. Members
of the lodge and their friends
were invited to attend.
Biq Hydroelectric Proiect Planned for Deschutes
Anow indicates site of proposed Pelton hydroelectric project which will produce 75,000 kilowatts of
power from waters of Deschutes river northwest of Madras to help relieve serious power shortage
In Pacific Northwest. Ultimate capacity of the plant, located at the bottom of a rugged 800-foot-deep
canyon, will be 112,500 kilowatts. Plant will be operated by Northwest Power Supply company, with
entire output contracted to Pacific and two other large power companies.
Acheson Sworn
In as Secretary
Washington, Jan. 21 mi Dean
Acheson took the oath today as
secretary of state, a role in which
he will be charged with pushing
President Truman's "bold new
program" for fighting commu
nism and human misery.
lie was sworn at 11:13 a.m. EST
in President Truman's office in
the White House. The oath was
administered by Chief justice Fred
M. Vinson while Mr. Truman look
ed pn.
i-.fheson succeeds Genj George
C.'Marshali under whom he help
ed to map the anti-communist
Greek-Turkish aid and European
recovery )lans. The 68-year-old
Marshall resigned, effective yes
verday, for health reasons.
Members of Achcson's family,
cabinet members, other govern
ment officials and congressional
leaders of both parties also
watched the ceremony.
Acheson stood in front of Mr.
Truman's desk as he took the
oath. Immediately afterward Mr.
Truman stepped around the desk
and shook hands with the new
secretary.
Oregon Coast
Hit by Heavy
Snow. Storms
Portland. Ore.. Jan. 21 Ul'i -
Snowfall was general over west
ern Oregon today with deplhs
piling up eight to 10 inches east
of Portland and giving the metro
politan area its worst traffic
snarl of the winter.
Three to five inches of snow
fell In downtown Portland bv mid-
morning anil the weather bureau
forecast more flurries tonight.
An 18-mile an hour wind was
building up deeper drifts east of
the city.
State, county, city and Portland
Traction company sanding crews
worked through the night anil
morning, but were unable to cope
with steadily falling snow which
packed into an icy glaze on all
main thoroughfares.
The slate police said motorists
without chains were court Vig
trouble anywhere in the city and
travel in any direction from Port
land was described as dangerous
or impossible without chains.
Snow on the runway and vary
ing visibility disrupted some air
line schedules at Portland airport,
but air lines generally were at
tempting to keep opciations nor
mal. Many schools were closed
through Multnomah county, in
cluding Cornell grade and "high,
Gresham grade and high, Park
rose grade and high. Troutdak
grade, Pleasant .Valley grade
and schools at Bonneville. Bridal
Veil, Eairview, Columbia, Orient,
Sylvan, Skyline, ilolbrook. River
dale. Springdale, Wilkes. Cedar
Mills, Russellville and Savies Is
land. TKI M.AN S I.l ( K GOOD
Washington, Jan. 21 m Presi
dent Truman's luck became near
I' gend today.
Yesterday the weather was per-fi-ct
for the inauguration, sunny
but crisp with cold.
Today Washington had over
cast skies and sleet turning to
rain.
1949
Columbia Project Manager
Vews Northwest Resources
Says Progress a Matter of Water Power
Development; Must Have More Crop Land
Spokture, Wash., Jan. 21 (U.E) Progress in the Pacific
northwest is largely a matter of water-resource development,
Frank A. Banks, district manager of the Columbia basin proj
ect, said here last night.
In a speech before the Spokane Junior chamber of com
merce, the bureau of reclamation engineer said :
"For a growing population,
and more power. Despite the
power capacity of the Pacific
northwest by the building ot
the Bonneville and Grand
Couled power plants and by
the inter-connecting", of the
power plants of five states in
the northwest power pool, the
generating capacity does not
meet the power demand.
"We need more generating ca
pacity right now. And we need
more water in the Columbia dur
ing cold winter weather so that
we can make full use of the gen
erators we are now putting in at
Grand Coulee dam. Upstream wa
ter storage of the Columbia Is a
critical need.
"Just now, we have two power
problems lo worry about -a de
mand in excess of generating ca
pacity which, without a doubt,
will continue for some years, ami
an unusually cold winter which
has cut down stream flows dras
tically and threatens to continue
for several weeks, and perhaps
months."
Referring to future develop
ment of the Columbia basin area,
Banks said some help would come
Irom the building of I he Hungry
Horse dam irt Montana and pro
posed developments at Albeni
falls and on the Kootenai river in
Idaho. He also pointed out pos
sible help from Canada where 00
per cent of Ihe runoff above Cou
lee dam originates.
Thin Ice Causes
Deaths of 2 Boys
Tacoma, Wash., Jan. 21 Hi'i
Two small brothers drowned in
Jpanaway lake .south of here late
yesterday when ice on which they
were walking gave way.
Shetiff's deputies said the boys
vere walking about ,'fl) yards oil
,hore when they suddenly lell
hrough Ihe Ice.
Senate Group
Investigation of Housing
Salem. Ore.. .Ian. 21 dli 1 he
senate today sent back lo its reso
lutions committee a measuie call
ing for a legislative Investigation
of housing after beating down an
attempt to give the proposed in
vestigating group specific insl ruc
tions. The vote was 21 to 9 to re-refer
The attempt to give Ihe commit
tee deflnile insl ructions was made
hy Sen. Richard L. Neuberger, !..
Portland, who wants an investiga
tion of Herbert Dahlko. head of
lie Portland housing authority,
and the "failure" of the Portland
housing group.
Dahlke was reappointed chair
man of the Portland authority by
ex mayor Earl Ulley shortly be
fore he went out of office. The
appointment brought bitter criti
cism from Dorothy McCullough
Lee, the new mayor.
"Lot's Investigate something
specific." Neuberger pleaded. "In
vestigate the root of this desper
ate housing crisis."
5 .' - I
we must have more crop land
great additions made lo the
Venezuela Gets
OS Recognition
Washington, Jan. 21 dl The
United States today granted full
diplomatic recognition to the new
revolutionary military govern
ment of Venezuela.
The action was announced by
the state department which made
public an exchange of notes with
Venezuela.
Diplomatic quarters speculated
that Ihe United Stales also would
recognize a similar new milllary
regime in El Salvador.
American recognition of the
new stale of Israel and of Trans
Jordan also was' reported under
study.
The state department said Wal
ler J. Donnelly, U. S. ambassador
to Venezuela, delivered a note of
recognition lo Die Cartas gov
ernment today.
The document said the Uniled
Stales had noted statements by
the new regime that it would
"strictly fulfill its international
obligations," and would prepare
elections.
Venezuela in a nole dated Nov.
25 notified this government that
the new military junta had taken
over in Venezuela because of Ihe
"grave eil cuiostances threatening
Ihe social peace and economic lite
of the republic."
Tl'(J BOAT EXPLODES
Astoria, Jan. 21 ill'1 A tug boat
xploM"d ami burned al her moor
ing here today injuring one man.
Police said Ihe Arrow No. 2. a
Columbia river pilots association
pilot schooner, blew up about Vf.'M)
A.m., burned and sank within a
shoit time.
Still Ponders
The measure, a house concur-;
renl resolution, would set up a
committee of two senators and
three house members to assemble;
information on housing situations i
throughout the slate for the hen ,
efit of the legislature. j
Sen. Frank Hilton. R.. Portland,
who opposed the measure, blasted .
Neuberger's proposals.
A voice vole defeated Neuberg
er's amendments and Hilton's mo
lion to send Ihe resolution back'
without instructions carried. :
Legislation to increase state aid
for children and wayward girls'
was introduced in the senate to
day. lliree bills were introduced to
accomplish the aim. line would
appropriate S875.000.
The bills were Introduced by
Ren. William McAllister, R., Med
ford, Sen. Ben Musa, D., The
Dalles, Rep. Dave Baum, R., La
Grande, and R"p. John I. Sell, R..
The Dalles.
W0L,t
No. 39
Truman Faces
New Problems
On First Day
Congress Leaders in Fog
Over Standards of Living
Issue for People Abroad
Washington, Jan. 21 ul'i Presi
dent Truman today began the
first full day of his new adminis
tration wdtli some of his own con
gressional leaders in a bewilder
ing fog about his plan to raise
living standards of backward peo
ples abroad.
Major party figures were ques
tioning the program on and oft
the record. There were signs of
a republican attack in force.
Soviet Challenge
In contrast, there was general
acclaim for Truman's challenge
to Soviet Russia. Men known for
their liking for the communist
party line were critical, but not
many others were.
As congress pondered the presi
dent's outline of foreign policy,
Dean Acheson began his chores
as secretary of state.
It was obvious from President
Truman's forceful inaugural
statement that Acheson would
have less to do with making pol
icy than in carrying it out in his
new position. Truman already has
said what the broad outlines of
foreign policy shall be. ,
Capital Scrambles
While the capital scrambled for
more Information on the contro
versial "living standard" portions
of Truman's address, world bank
President John J. McCloy return
ed lo Washington and said maybe
il originated with him. The plun
might have come, McCloy said,
from some papers he sent to the
White House recently.
lie said a program for aid to
backward peoples might be work
ed out through the world bank or
Ihe expoitimport bank. Any
loans would be for a long term.
Whether they would be tied to the
Marshall plan program,, McCloy
did not know.
pongress will insist, however,
oiv getting from Trui'nan or Ache
son considerably more detailed in
formation. Doubts, Questions
As Acheson picked up the di
rection of foreign affairs, there
was a barrage of questions,"
doubts, and dissents from con
gress on that part of the foreign
policy stated yesterday by Tru
man. It would divert American and
other private capital into the de
velopment of backward countries.
The president did not go into de
tail. But lie did say that such de
velopment. would he controlled,
presumably by Ihe United Na
tions or some governmental agen
cy, and that returns on invest
ments would be both limited and
guaranteed.
Some lop members of both par
lies begged off when asked to
comment on that program. They
said they did not know what the
president meanl and hoped he
would illuminate the matter for
them.
Others warily advised a go-slow
approach to anything aimed at
helping the miserable millions
whom the president estimated to
be about half all the world's popu
lation. CIO Workers Quit
Studebaker Plant
South Hend, Ind., Jan. '21 U'i
CIO Uniled Auto Workers left
their jobs at the Studebaker
corporation plant here today over
a wage dispute, and the company
said virtually all production was
at a standstill.
A company spokesman said
"nearly all of the 1(5,000 workers
n Ihe pas longer car and truck di
visions were idled by a wage dis
pute involving workers in the
seat manufacturing department.
P. O. Peterson, vice president
in charge of manufacturing, said
Ihe dispute was "over piece work
rates."
officials of Studebaker local
No. a, UAW-CIO, had no com
ment. They said they might issue
a statement later.
Democrats Hold
Jackson Dinner
Salem, Jan. 21 U!''- More than
100 democrats last night attend
ed their traditional Jackson day
linner here and heard Stale Sen.
Richard L. Neuberger declare he
Iocs "ri"t intend to become a
candidate for governor."
"My desire," he said, "Is to re
main at my present occupation of
writer."
I le said some persons have con
fused his legislative work with
personal ambition and he wanted
to set the record straight.
Neuberger cautioned the demo
crats they could succeed in Ore
gon "only ns a party of Ideas and
.i .t as a party of intrigue."