State Forecast
Oregon Cloudy with occa
sional light snow mixed with
rain or freezing rain. Satur
day mostly cloudy with a
. few scattered snow or rain
) showers.
LEASED WIRE WORLD
NEWS COVERAGE
CENTRAL OREGON'S DAILY NEWSPAPER
34th Year
TWO SECTIONS
BEND, DESCHUTES COUNTY, OREGON, FRIDAY, JANUARY 6, 1950
No. 26
Great Britain Recognizes Chinese Communists
'
THE BEND BULLETIN
4 Clubs Install
New Officers;
300 at Dinner
Nearly 300 persons, with the
Bend Kiwanis club as hosts, gath
ered last night In the new recrea
tion hall of the Redmond Commu
nity Presbyteriangchurch, for a
banquet and the first four-club
joint installation ever held in the
Pacific Northwest Kiwanis dis
trict. Officers of the Bend, Red
mond, Madras and Prineville
clubs were inducted, with Russell
G. Kurtz, Goos Bay, lieutenant
governor of Kiwanis division 15,
as installing officer.
The program was arranged by
Ben Hamilton, retiring president
of the Bend club, and A. J. Glas
sow, another Bend past president,
was master of ceremonies.
Bend Rector Speaker
Rev. F. C. Wissenbach, rector of
Trinity Episcopal church, gave
the .installation address, tracing
the origin of service clubs to the
guilds and unions of the thir
teenth and fourteenth centuries.
Giving reasons for the existance
of such organizations, the speaker
reminded that Jesus of Nazareth
said to his disciples, "I am among
you as one that serveth." "
Business has developed "mor
al credentials," Rev. Wissenbach
said, crediting a revival of respect
for Christian ethics as motivating
force of business's "gospel of
service," which followed the "gos
pel of production," with its wage
increases, Better labor-capital re
lations and social benefits. Service
is now the primary function of
business, he declared, with all
business people bidding for the
good will of their fellows.
In order that all nations of the
world can benefit by this wider
realization 01 service and good
will, there must be an uninhibited
world market, he continued, with
no one power permitted to stand
in the way of progress.
This new type of business,
which is striving for moral objec
tives, will dictate to politicians,
statesmen, and even the armies
and navies of the world, he pre
dicted.
Widely Traveled
In introducing the speaker,
Glassow pointed out that Rev.
Wissenbach has traveled widely
both on this continent and in Eu
rope. He referred to the speaker's
hobby, painting, and mentioned
some of his interpretations of
western scenery.
Preceding the address, Rev. Al
lan Philp, Bend, sang two bail
tone solos, "David and Goliath,"
by Mallotte, and "Shadrack," by
Kooert MacUimsev. with Mrs.
Philp as accompanist. Before the
installation, the Bend Kiwanis
club quartet, composed of Nor
man Venable, Bob Dudrey, Lloyd
Robideaux and Bill Mark, enter
tained with a group of "barber
shop" ballads. The singers wore
barbers' jackets and bow-ties, and
their make-up including flowing
mustaches, Valentino hair-styles,
and reddened noses.
Walter Stauffacher, Redmond,
was accompanist for opening and
closing songs, in which the entire
group joined. D. L. "Penhollow
gave the invocation; Rev. Philp,
the benediction.
Guests Present
Kiwanians present who are
members of clubs other than the
four in central Oregon were Ma
jor Fred P. Stevens, of the Salva
tion Army, Portland, and Mars
den Elliott, brother of Jack El
liott, Redmond lumberman from
Wauwatosa, Wise.
After the installation, presi
dents' and past presidents' pins
were presented by Kurtz. The new
(Continued on Page 5)
Compromise Ruling Provides
For Law and Order at Celilo
Portland, Jan. 6 UiLaw and
order are to be established at the
Celilo falls Indian Settlement un
der a new compromise bill drawn
up by the bureau of Indian af
fairs, attorneys for three tribes
and members of the Celilo fish
committee.
Representatives completed the
draft late yesterday.
The new measure, which is an
amendment to the original pro
posal of February, 1949, has these
major provisions:
!. The secretary of Interior
shall have the power to. deter
mine the right of fishing sites at
Celilo.
2. The secretary of Interior also
shall have authority to provide
ordinances for the government
of the Celilo Indian village, and
maintenance of law and order.
The bill calls for the establish
ment ol a court of Indian of
Midstate
h j Q
ii'lWIWMIMMWIWWW TlillllTliri"fc 1 lil'mi III li MMIMI
New presidents of four central Oregon Kiwanis clubs received congratulations when they were in
stalled last night by Russell G. Kurtz, lieutenant-governor, at ceremonies in the social room of the
Redmond Community Presbyterian church. Left to right, above, are Maurice Larlve, Redmond; Carey
M. Foster, Prineville; Kurtzt Wayne Foster, Madras, and Don Conner, Bend. Below is pictured Rev.
F. C. Wissenbach, of Trinity Episcopal church, as he delivered the address of the evening. Seated at the
table, at the left of the picture, are Mr. and Mrs. A. J. Glassow and Mrs. Wissenbach. At right are
Ralph H. Hauck, retiring president of the Redmond club, and Fred Dexter, retiring president of the
Madras club.
WT W W 1 W MCM B !! illllIIIMMIIIIIMHHimwiM
Week-end Skiing
Forecast Issued
(Br United PreM)
The weather bureau issued the
following ski conditions and week
end forecast for, Oregon:
Santiam pass Snow depth 86
inches; four inches new; surfaces
powder; snowing; skiing excel
lent; roads good; chains needed.
Forecast: Occasional snow with
strong southerly winds and rapid
ly rising temperatures today;
snow flurries Saturday; decreas
ing winds; temperatures 20-30.
Odell lake Snow depth 50 inch
es; three new; fluffy; light snow;
skiing excellent. Forecast: Occa
sional snow today through Satur
day; warmer; temperatures 20-30.
Timherline lodge Forecast:
Snow and fog with strong south
wind today and tonight; Saturday
snow flurries; southwest winds
15-25; warmer.
Football Special
Hits Texas Auto
Del Rio, Tex., Jan. 6 (tP One
person was reported killed and
another injured today when the
Santa Clara football special train
en route home from the Orange
Bowl game struck a vehicle at a
grade crossing near the Del Rio
station.
Fragmentary reports from the
scene said the two unidentified
victims were Ln the vehicle, which
was struck at a crossing guarded
by warning lights. The accident
happened in daylight hours.
fenses, similar to the courts on
Indian reservations.
The tribal councils of the Yakl
mas, Warm Springs and Umatil
las. the Indian bureau head In
Washington and then congress
must pass on the bill before it
will go into effect.
Chief Tommy Thompson of the
Wy-Am tribe at Celilo objected
through his attorney, Floyd G.
Dover, Portland, because the
Wy-Ams are not mentioned spe
cifically in the bill. The fish com
mittee and the tribal attorneys
contended, however, that Chief
Tommy and his group are not
separate but are included in the
Warm Springs tribe and thus are
not deprived of any of their tra
ditional rights.
"Chief Tommy has been losing
his rightful authority at Celilo
ever since the fish committee was
established in 1935," Dover said.
Kiwanians Install Officers
c?f t 0 AM
Arctic Front, Moving South,
Expected to Chill Northwest
By Week End; Rains Reported
(By United Press)
Warm rains washed slushy highways in the Pacific north
west Friday but a new arctic cold front woving southward
rapidly was expected to grip the area again this weekend.
The weather forecaster in Seattle predicted temperatures
well below freezing would prevail. The mass of frigid air cov
ered the Gulf of Alaska and was spreading over British Co
lumbia. Meanwhile, ocasional heavy Vain drenched western Wash
ington and coastal sections pf
Oregon melting snow and ice
that has snarled traffic for a
week. ' '
The mercury hovered above
freezing throughout the re
gion except at high elevations
in the Cascades.
In Seattle, the transit system
greeted the warmer weather with
a mixture of relief and regret.
Transit general manager Lloyd
Graber said business was so good
during the sub-freezing days that
it rivalled the pre-Chrlstmas rush.
Hills Are Slippery
Despite the rains, several tran
sit routes remained curtailed in
Seattle early Friday due to slip
pery hills.
Quarter-size snow flakes mixed
with a downpour of rain fell in
Seattle In the pre dawn hours Fri
day. The weather bureau announced
that storm warnings were chang
ed to small craft warnings at 6
a.m. Frltlay from Tatoosh island.
Wash., to Cape Blanco, Ore., for
southerly winds 25-35 miles an
hour, diminishing by nightfall.
Anti-Histamine
Drug Study Starts
Chicago, Jan. 6 U The Ameri
can Medical association said to
day that its council on pharmacy
was making a full investigation
of anti histamine drugs and that
a report was expected In about a
month.
Meanwhile, a spokesman said,
the association would not com
ment on the report in an English
medical magazine, Lancet, that
several British children were kill
ed by the drugs.
FIGURE SKATER COMING
Frank Hall, of Prineville, a
well-known figure skater, will ap
pear In an exhibition on the Bend
municipal ice rink tomorrow aft
ernoon at 2 o'clock, Wayne Ham
ilton, city director of recreation,
announced today. Hall will dem
onstrate skating technique. There
will be no charge, and spectators,
as well as skaters, are being in
vited to be present.
Postal Receipts
At Record Mark
Bend's postal receipts in 1949
set a new record for a pence
year, reaching the Imposing fig
ure of $109,310.29, it was announc
ed today by Farley J. Elliott, post
master. This total compares with
$100,698.49 in 1948.
Greatest postal receipts ever at
tained here amounted to $125,
221.53 in the Camp Abbot year
of 1943 when thousands of sol
diers were in this area.
Records prepared today by
Postmaster Elliott show that in
the year just past quarterly re
ceipts exceeded those of every
similar quarter in 1948, reaching
a peak of $34,58-1 in the final quar
ter. Due to Christmas mailing,
the final quarter receipts are con
siderably greater than those for
earlier quarters.
Receipts by quarters for 1948
and 1949 follow:
1949 1948
First $24,578.8-3 $22,926.G7
Second 24,828.16 22,947.34
Third 25,318.35 23.293.8S
Fourth 35,548.90 31,530.60
Soviet Magazines
Get Nod of Board
Portland, Jan. G UliThe Port
laid school board believes that
Russian magazines should be per
mitted in high school libraries
if they are clearly labeled "prop
aganda." Superintendent Paul A. Reh
mus asked directors last night
whether the Russian government
publication USSR should be al
lowed, and the opinion was given
by chairman S. Eugene Allen
that matter of current interest
should be available to students.
Assistant superintendent V. D.
Bain said circulation of the Soviet
magazine was controlled and used
principally by classes studying
propaganda problems. '
Truman Gives
Congress Plan
For Prosperity
By MeiTuiian Smith
(United Pra Whit House HrportM-)
Washington. Jan. 6 IP Presi
dent Truman today gave congress
his design for prosperity in 1950
ot.uuv.uuu ioos. tne nienest uro-
duction In history, and only mod
est changes in wages, and prices.
ine loo goal would be an in
crease of more than 2,000,000 over
last year's average. Only once
has employment actually touched
61,000,000. That was in the sum
mer of the 1948 boom year.
His semi-annual economic re
port to the house and senate con
tained only one new legislative
proposal affecting the general
public power for the federal
reserve board to impose restric
tions again on installment buy
ing.
Taxes Possible Factor
He said his forthcoming tax
program would "stimulate busi
ness activity" while still netting
the government a moderate rise
in revenue. Presumably the stim
ulation would come from reduc
tion of excise taxes.
Along with the goal of 61,000,'
000 jobs, the chief executive urg
ed that the national output this
year be stepped ud to an annual
rate of $277,000,000,000, seven per
cent over 1949.
Production and more produc
tion was the key point ln Presi
dent Truman's designs for a pros-
perous economy which would
grow better and better with every
year.
He said it should be possible
to hike the national output to
$300,000,000,000 and employment
to M.uuu.uoo jobs by Ameri
can families then should average
$1,000 a year more income than
today, he said.
Inflation Discussed
For the most part, Mr, Truman
thought the inflation scare was
over. But he asked congress to
give the federal reserve board
greater authority over bank cred
its, as well as power over install
ment buying which has reached
record highs.
Otherwise his legislative rec
ommendations were echoes from
his state of the union message
this week; continued rent control,-'
more social security; (he
Brannan farm plan, etc.
The president said the econ
omy today is "strong" with "pric
es down somewhat . . . business
proceeding with good profit pros
pects" and employment and pro
duction moving up again after
the mid-1949 decline. .
Counsel Given
On wages and prices, the pres
ident and his advisers counseled
labor and management to take
it easy.
"Prices now seem at or near
a stable level consistent with con
tinued expansion of business ac
tivity," Mr. Truman said.
He found "few if any major
areas" where price increases
would be justified under "pres
ent circumstances." And hp said
.there are "some outstanding
areas where price cuts are de
sirable to "maintain and expand
sales."
VICE-ADMIRAL DIES
Bellcvue, O., Jan. 6 dP Vice
admiral John Wills Greenslade,
70, U. S. navy retired, died today
at Bellcvue hospital.
He was commander western
sea frontier with headquarters In
San Francisco in 1942 and placed
on the retired list in 1944. How.
ever, he was kept on duty status
and named Pacific coast coordin
ator of naval logistics.
Short-Range Business Outlook Reported
Good But Moderate Recession may Occur
Washington, Jan. 6 HP Themer.
council of economic advisers saldi
today the short-range business
outlook is good. But another mod
erate recession might occur late
this year unless business and gov
ernment make new adjustments.
In its annual review accom
panying President Truman's econ
omic message to congress, the
council said the late 1949 business
upturn was strong enough to car
ry through early this year.
The revival from last year's
post-inflation downturn, soon will
be aided further by distribution
of $2,800,000,000 In veterans' in
surance dividends, and by con
tinued high demand for things
like automobiles.
Leon H. Keyserllng, acting
chairman, and council member
John D. Clark were satisfied with
economic progress since mid-sum-
Heads Chamber
, C jf l m t m m m
James W. Bushong, Bend su
perintendent of schools and
president of the Oregon School
Superintendents' association, to
day was elected president of
the Bend chamber of commerce
for the coming year.
Chamber Group
Names Leaders
J. W. Bushong, 'superintendent
of the Bend public schools, today
was named president of the Bend
chamber of commerce by a unani
mous vote of the organization's
board of directors.
Other officers selected for the
new year at today's directors
meeting In the Pine tavern were:
Gordon H. Randall, first vice
president; Kessler Cannon, sec
ond vice-president, and Kenneth
K. bawyer, treasurer.
1 Bushong succeeds Frank H.
Loggan who today was named the
organization's national counselor
an office which involves contact
work with the u. S. chamber and
other organizations.
Officers Listed
Both Randall and Sawyer suc
ceeded themselves as first vice
president and treasurer, respec
tively, and Cannon replaced Alva
Goodrich as second vice-president.
Also taking their seats as board
directors for the first time today
were Cannon, A. J. Glassow,
Maurice Hitchcock, Carl E. Erick
son, Ben Fanning and Pat Cash
man. One of the first actions of the
newly formed board was the re
tention of Howard W. Moffat, as
chamber manager for 1950. Mof
fat replaced Floyd West who re
signed from the post this past
month.
The group also ordered an audit
of the chamber's books and con
sidered plans for formation of
committees, and preparation of a
budget.
Cooperation Planned
Among other actions the board
agreed to cooperate with the jun
ior chamber group in its January
20 banquet at which awards will
be made to the outstanding junior
and senior citizens of 1949.
The announcement was made
the Bend chamber will be host
next January 24 to delegates of
the Central Oregon chamber of
commerce at a dinner-meeting In
the Pine tavern.
Others present for today's board
session included: Ralph Adams,
Alva Goodrich, Richard Brandis,
C. L. McAllister, all holdover
board members, and Bert Hngen,
Jaycee president, and Mrs. Gladys
Gardner, chamber office secre
tary. FIRE CALL ANSWERED
The Bend fire department an
swered a general alarm today at
11:49 a.m., and extinguished a
flue fire at the home of Charles
Hansen, 1435 E. Fourth.
"Few would have predicted dur
ing the decline of the first half
year that the year's end would
leave us in such good condition,"
they wrote.
But they warned that "some
changes . . . could halt the ad
vance of the economy In the latter
part of the year."
The council expected that the
veterans' insurance dividend
would be largely spent by the end
of June, resulting In a weakened
demand on the retail market. For
eign aid spending also will be re
duced, weakening the export mar
ket. The demand for automobiles
may go down by mid year unless
lower-priced models are produced.
Affirmative action by business
and government can prevent It,
the council said. The American
Empire Severs Its Relations
With Nationalist Government;
Washington Remains Silent
By Harold Guard
(United Prom Staff Correspondent )
London, Jan. 7 (U.E) Great Britain today granted full dip
lomatic recognition to the Chinese communist regime and
broke relations with Generalissimo Chiang Kai-shek's na
tionalist government.
This marked the first major break in Anglo-American ac
cord on foreign policy in a quarter of a century. U. S. Secre
tary of state Dean Acheson said
ton that it was "premature -
to consider recognition of the
Chinese communists at all.
Foreign secretary Ernest
Bevin sent a note to Peiping
saying the decision to recog
nize the communist regime
was taken because the commu
nists were "now in effective con
trol of by far the greatest part of
the territory of China."
The note was addressed to Chou
En-lai, foreign minister of the
Chinese communist government
headed by Mao Tse-tung. Mao
now is in Moscow to negotiate re
vision of the 1945 Sino-Sovlet trea
ty of friendship.
Five non-communist nations
now have recognized the Chinese
communists. Burma, India and
Pakistan granted recognition pre
viously. The dominion of Ceylon
followed Britain s action in an
nouncing recognition today.
Terms Outlined
Bevin's note to Chou En-lal said
that Britain was "ready to estab
lish diplomatic relations (with the
Peiping regime) on a basis of
equality, mutual benefit and mu
tual respect for territory and sov
ereignty." 1
.The foreign office announced
simultaneously " that -recognition
was being withdrawn from the
Chinese nationalist government
which has been driven from the
mainland of China to the Island
of Formosa.
The statement said the Chi
nese ambassador in London, Dr.
Cheng Tien-his. was informed of
this decision when he met Minis
ter of state Hector McNeil at the
foreign office for an hour last
night.
The statement said that J. C.
Hitchison, minister of the Brit
ish embassy in Nanking, had been
appointed British charge d'af
faires In Peiping pending appoint
ment of an ambassador. Britain
asked that he be given facilities
to transfer himself, his staff and
records from Nanking to Peiping.
No Assurance Asked
The foreign office said Britain
had not sought and had not re
ceived any assurance regarding
Hong Kong, the British crown
colony on the rim of communist
China.
Reports from Oslo and Copen
hagen said Norway and Denmark
were expected to recognize the
Chinese communists soon.
British business, which has a
stake of more than half a billion
dollars in China, praised the gov
ernment decision. But no one ex
pected an immediate change in
the anti-western business policy
of the Peiping regime.
British firms were pressing the
foreign office to do something
to protect British shipping
against attacks by nationalist
gunboats and bombers blockad
ing communist-held ports.
WORKER KILLED
Redding, Calif., Jan 6 lliAde.
bert J. Larrabee, 45, bureau of
reclamation employe, was killed
late yesterday when he fell from
a 40-foot pole while working on
the Keswick dam power line, the
coroners office reported.
economy should make five furth
er adjustments:
1. Hold prices to their present
levels. Price Increases, particular
ly in basic industries such as
steel, add to the threat of Infla
tion. 2. Maintain business Invest
ment at a high level. Forecasts
for 1950 show a continuation of
the Investment decline started In
1949. This should be reversed, the
council said.
3. Promote consumption at
more rapid pace than growth of
plant and equipment.
4. Realization by business that
"domestic and world affairs do
not permit even those deviations
from maximum employment and
production which were considered
normal or tolerable ln earlier
times."
5. Help stabilize world economy
by cutting trade barriers.
only yesterday in Washing
No-Aid News
Stuns People
On
Talpeh, Formosa, Jan. 6 IP
Chinese nationalists today re
ceived in stunned silence Presi
dent Truman's statement that
the United States will not send
American men, arms or military
advice to fight the expected com
munist invasion of Formosa.
The news proved a heavier
blow than British recognition of
communist China, which had
been expected for some time.
U.S. official quarters here said
that as far as they knew the
president's statement would be.
considered an official reply to
Chinese Ambassador Wellington
Koo s request lor American aid.
News of Mr. Truman's policy
announcement reached here as
hard-pressed nationalist troops
were reported to be girding for
"a communist amphibious assault
against the nationalist bastion of
Hainan island at the southern
tip ot the Chinese mainland..
The communists were reported
to have assembled a formidable
invasion fleet on the Lichow pen
insula and thousands of commun
ist troops were reported stream
ing onto the peninsula in prepar
ation for the attack.
Noted Scientist,
Dr. Bowman, Dies
Baltimore, Md., Jan. 6 (IB t)r.
Isaiah Bowman, Internationally
known geographer and scholar
and former president of Johns
Hopkins university, died ' today
at Johns Hopkins hospital here.
He was 71.
Bowman, who retired from the
presidency of the university Dec.
31, 1948, was taken to the hos
pital early this morning after
suffering a heart attack at his
home. He died less than seven
hours later.'
Dr. Bowman visited Bend twice
in the past 20 years, and each
time was accompanied by his son,
Robert G. Bowman, now profes
sor of geography at Nebraska
State university. On his first vis
it, Dr. Bowman spent some days
here gathering material for use
in a book, "The Pioneer Fringe,"
published in 1931. With Bend as
his base, Dr. Bowman visited
Klamath county and parts of
northern California, including the
Bleber and Alturas areas.
While in this region, Dr. Bow
man interviewed old time resi
dents, especially in the Lakeview
and Burns communities. In Bend,
he spent some days gathering ma
terial from early files of the
weekly Bend Bulletin. Dr. Bow
man was here again for a short
stay In 1932.
Trainmen Killed
In Train Crash
Cranbrook, B.C., Jan. 6 U A
late-running C.P.R. Vancouver to
Medicine Hat, Alta., passenger
train on the single track Kettle
valley line smacked Into a freight
train west of here early today,
killing two and hospitalizing nine.
In 10 below zero weather, bus
es, ambulances and taxis rushed
to the scene at Fassiferne, a
C.P.R. section five and a half
miles west of Cranbrook, and took
the (lead and Injured to St. Eu
gene hospital at Cranbrook. En
gineer William Linton, Cran
brook, and brakeman W. J.
Myles, Cranbrook, were killed al-
mtiat tnctnntltf nhnnrfl tholt
freight train.
Four freight cars were spilled
off the track Into a foot of snow
on the ground.