Univ. of Orison Litrary
: .EUQKI3, 03S33:i
Forecast
THE BENB- BULLETIN
High and Low '
Max. yesterday, 50 degrees.
Min. last night 24 degrees.
Sunset today, 5:26. Sunrise
tomorrow, 7:13.
Clearing tonight; mostly
fair Thursday; high both
days 35-40; low tonight 15
20. CENTRAL OREGON'S DAILY NEWSPAPER
52nd Year
Two Sections
Bend, Deschutes County. Oregon. Wednesday. February 9, 1955
Twelve Pages
No. 55
Bulgaria Sets Russia on Program
Of Emphasis on Heavy Industries
By KENNETH BRODNEV
United Press Staff Correspondent
MOSCOW (UP) Russia's new
Premier Nikolai Eulganin today
set the Soviet Union on a new
course that will emphasize the
development of heavy industry.
Addressing the Supreme Soviet
for the first time since his "elec
tion," Bulganin said his regime
will follow the general line set for
the Communist party by First Sec
retary Nikila Khrushchev.
Krushchev late last month
spelled out officially the shift in
emphasis from fallen Premier
Georgi Malenkov's consumer goods
program to heavy industry.
(The pledge of the new Premier
to follow the Khrushchev line un
derscored anew the growing be
Ike Speaks Warmly of New
Red Defense Head, Zhukov
WASHINGTON (UP) President
Eisenhower, speaking warmly of
his 194W6 friendship with Soviet
Marshal Georgi Zhukov, said today
he Would not hesitate discussing
with his advisors a new invitation
for Zhukov to visit the United
States.
Mr. Eisenhower talked of Zhukov
at a news conference shortly after
the Russian army leader was
named Soviet defense minister.
The President said the shakeup
in the Soviet government is a
greatly significant change which
shows dissatisfaction there. . He
said it would not change basic
American policy to work for peace
through strength.
Hydrogen Weapons
The President questioned the
claim by Soviet Foreign Minister
V. M. Molotov that Russia was
superior in the field of hydrogen
weapons. Mr. Eisenhower said
there certainly was no proof to
that effect and such a superiority
as claimed by Molotov would be a
rather remarkable feat.
Mr. Eisenhower seemed to go out
of his way to speak highly of
Zhukov, who only today was. ap
pointed Soviet defense minister in
a continuation of the shakeup that
was announced yesterday.
Recalling their friendship in Ger
many at the end of World War II,
Mr. Eisenhower said he had invit
ed Zhukov then to come to this
country. He gave the invitation on
instructions from Washington. Ho
said he made his plane available
to Zhukov and that his son, John,
was detached for the trip to the
United States as Zhukov's military
aide.
Were Good Friends
Saying again that he and Zhu
kov were good friends, the Presi
dent recalled with a laugh that
Zhukov had said it should be a
safe trip with Mr. Eisenhower's
plane and Bon.
Asked if that invitation back in
1045 was "still open," the Presi
dent said, somewhat taken aback,
that this was the first time it had
been mentioned to him since he
became President and that he
wouldn't do it now at any rate
without consulting his advisers.
Then the President, his eyes
sparkling as he paused to reflect,
said such an invitation would be
quite a remarkable thing under
present conditions. But he said he
wouldn't hestitate to discuss it with
his advisers.
Saw Eye to Eye
The President said that he had
great respect for Zhukov's abilities
back in 1945 when they were tne
commanders in Berlin. He said
they saw eye to eye on local prob
lems then and that he believed
they were trying to set up a pat
tern in Berlin to show that the
two nations could get along to
gether.
But the President steadfastly
refused to evaluate the signifi
cance of the Moscow shakeup or
what Zhukov's armointment ?tpnnc
Toll Elevated
To Supervisor
Swial to The Bulletin
REDMOND Elden A. Toll; who
has been assistant in the Farmers
If'ime Administration office in
Madras for the past two and (
half years, will take over as su
nervis-ir of the Redmond office on
Feb. 14. The announcement was
made today by Gilbert W. Dyer
ciunty supervisor of the Redmond
FHA since 1950. Dyer leaves
Thursday for Pressor, Wash
where he will asume duties as
. supervisor-appraiser f-r FHA in
Benton county. Mrs. Dyer and
their two children will remain ir
Redmond' until they find perma
nent housing in Prosser.
Mrs. Floyd Watn, county office
clerk in the Redmond office for
nearly two years, will continue In
that position.
lief that the party first secretary
is emerging as the most powerful
man in Russia, with behind the
scene controls approaching those
of the late Josef Stalin.)
Aid to China
Turning to foreign affairs, Bul
ganin told the Supreme Soviet
Dial "China can count on the Sov
iet Union" in the Formosa crisis.
Before Bulganin spoke, Soviet
Marshal Ivan Konev warned that
a Red army more powerful than
in World War II would crush any
Western attuck on Russia "with
all types of modern weapons."
"We are not alone," Konev said.
"The great nation of (Rcd)-China..
and the Soviet Union now form
one camp and a powerful 'army
for peace. '
today.
He said the last time he had
heard from Zhukov directly was
in April, 1946, when he received a
letter from the Soviet hero. Asked
about the letter, tlje President said
he believed it accompanied a bear
rug which he received as a gift
from Zhukov and still has.
Talk of Peace
The President was asked about
a statement made by Zhukov to the
effect it was his "dream" to visit
the United States some day and
back in 1945 that the United States
that Mr. Eisenhower had told him
would never attack the Soviet Un
ion. Zhukov, according to this ac
count, said that he told Mr. Ei
senhower then that the Soviet Un
ion would never attack the United
States and that he today hoped
both men were right, . or that this
point of view still held.
The President said the repeat
of trie two views, as given by the
repdrter, sounded remurkably ac
curate. Recalling the conversation back
in 1945, the President said he ex
plained to Zhukov how difficult it
would be for the United States to
organize a war of aggression be
cause it had to get money for all
its operations from Congress where
all matters were debated. He said
he saw no possibility that the Unit
ed States could produce a surprise
attack.
Hells Decision
Not Due Until
Late in Summer
PORTLAND (UP) It will be
at least August before a deci
sion on Idaho Power Company's
application to build low dams on
the Snake liver can be expect
ed, Jerome K. Kuykendall,
chairman of the Federal Power
Commission, said yesterday.
Idaho Power seeks FTC auth
ority to build three dams near
the Hells Canyon site on the
Snake. This is opposed by pro
ponents of a high, federal dam.
Kuykendall, here to address
Chamber of Commerce man
agers from Oregon and Wash
ington, said all briefs on the
current hearing arc due by Feb.
21. The examiner will try to sub
mit his report by May 1. All
parties then will have 20 days to
file exceptions to he report.
This time could be extended, he
said.
The next step Is oral argu
ments, which will not be before
June. Then It will take the com
mission at least 30 days to reach
a decision, which would be late
July or August at the earliest,
Kuykendall said.
S i
DON'T BE A LITTERBUG"
ter contest sponsored by the Mirror Pond Garden club in cooperat.on with the state proeet oi me wregon reoersntm D,
Clubs. Winners in the local phase of the contest were Melvin Kroker, first, at right; Gilbert Lucas, second, at left, and Susan Dilla
baugh, third, in center. Carol Hanshew, not present for the picture, won honorable mention. Award presentations were made by
Mrs. Francis Stokesberry. state chairman. Judges were Miss Mildred Y. Wilson, Miss Ada McCune and Mrs. Ruth Thurston. All win
ner! are member! ef Barbara Stelnhauser's afternoon art class. Mek-in'i poster will be placed In state competition. Bulletin Photo)
He attacked what he charged
was the "continual provocation
against China our great friend."
Konev is one of the Soviet Un
ion's leading military figures and
has held such high positions as
commander-in-chief of the Army
and deputy minister of war.
In 1954 he was reported com
mander of the Carpathian Military
Region. He was chairman of the
tribunal that condemned Lavrenti
P. Beria. ,
Konev was one of a long list of
speakers who followed the example
Tuesday of Foreign Minister V. M.
Molotov in condemning the United
States. , "
Allied Commander Criticized
Pavel Bykov, a Stalin Prize-in-ning
machinist-lathe operator rep
resenting heavy industry workers
in the Soviet Parliament bitterly
attacked American generals for
"atom mongering,"
He singled out Gen. Alfred M.
Gruenther, Allied supreme com
mander, and said he "will not stop
to think twice about using atomic
weapons."
He also ripped into Brig. Gen.
John D. Stevenson,. U.S. 49th Air
Division commander in England;
Adm. Arthur Radford, head of the
U.S. Joint Chiefs of Staff, and
British Field Marshal. Viscount
Montgomery.
"Montgomery has forgotten the
old English proverb that those who
live in glass houses shouldn't
throw stones'," he said.
Hearing Held on
Cut-Over Lands
Brooks - Scanlon, Inc., has re
quested that its cutover lands
within the county not be classified
under the state-reforestation act
but continued on tjie county's reg
ular ad valorum schedule.
The request was made for the
company by its general manager,
A. J. Glassow, at a classification
hearing this morning in the coun
ty court room of the county build
ing. J. F. Daggett, Prineville, a
member of the State Board of For
estry, presided.
Glassow said classification of
the 1,304 acres eligible for inclu
sion under the reforestation act
would interfere with' the firm's
forestry' program and-sehedule for
sustained yield cutting.
Under classification, lands con
sidered cutover are exempted
from regular ad valorum taxes
and subjected to a nominal
forestry fee until a new timber
crop matures. East of the Cascades
the forestry fee Is 2i cents an
acre,
Present ad valorum tax rate on
the land held by Brooks-Seanlon
and considered for classification
is estimated at 20 cents an acre
by County Assessor Leslie Ross.
During the hearing Ross thanked
the mill for Its request, pointing
out that refusal to classify will
provide the county with a
"steady" source of revenue from
those lands.
Hans Millus, forester for the
mill, said in his opinion the state
classification law "is not a help
hut a deterrent", to good logging.
He said he thought the law en
courages loggers to deforest a
timber tract to gain exemption
from regular ad valorum taxes
Final decision on classification
will be made by the state forestry
board at Its next meeting in Salem
in March.
Several other limber, owners
also attended the hearing, one of
several planned for forest areas
in the state over the next several
weeks
Awards were presented at a high
Population Up
Seven Per Cent
In Deschutes
The population of Deschutes
county increased seven per rent
In the year between July 1, IMS
and July 1, 1961, figures re
leased this week by the Oregon
League of Cities show.
Population as of mld-1954 was
given as 21,770 as compared to
20,310 on July 1 the previous
year. , ,
The figure for hist year, how-'
ever, represents a slight drop
over the number of county resi
dents at the time the 1960 fed
eral census was taken. In 1950
the population was set at 21,812.
Other Central Oregon counties
also showed an Increase in pop
ulation in 1951 over 1953. Crook
county population Increased
front 9,045 to 9,220 within the
year, and Jefferson county from
5,887 to 6,890. .
Total state population, accord
ing to the league figures, has
Jumped almost 10 per cent since
the 1950 census and one per cent
between July 1, 1S5S and the
same dale last year.
Present state figure Is given
as 1,662,680. This compares to
1,636,761 for mid-1953 and to l-1
521,341 for 1950.
U.S. Reserves
Are Inadequate,
Ridgway Warns
WASHINGTON '(UP) Gen.
Matthew B. Ridgway warned Con
gress today that the nation's mili
tary reserves are in an "unac
ceptable state of readiness" and
"would fail us in an emergency."
The Army chief of staff told a
House Armed Services Subcom
mittee of the "utmost urgency"
frAm beine sacrificed in battle
without adequate training. He tes
tified in support of the administra
tion's proposal for a modified form
of Universal Military Training to
provde a large combat-ready re
serve force.
"Unfortunately our present re
serve forces continue in an un
acceptable state of rediness, un
able to reach combat effectiveness
within any period of time likely
to be available to us," Ridgway
said.
"Should art aggressor attack,"
Ridgway said, "time will be lim
ited and though untrained person
nel could be committed to battle,
the casualty rate would be exces
sive." .
Ridgway previously has warned
that President Eisenhower's cuts
in the standing armed forces will
jeopardize the nation's security
"to a degree."
He said if the new reserve pro
gram is not enacted, "the Army
will be compelled to continue to
rely upon a demonstrably ineffi
cient system which would fail us
in an emergency."
Ridgway recalled that "in Ko
rea our forces were nearly swept
into the sea during the early
stages of the war. This disaster
occurred because active Army
units were under strength and
spread too thinly to support world
wide commitments."
The administration's reserve
plan is aimed at building up a
minute-man force ,pf three million
men. Since it includes a modified
version of Universal Military
Training, it is sure to kick off a
new fight in the House over umi.
Defense Secretary Cnarlos E.
Wilson told the subcommittee yes
terday that it is imperative to
overhaul the reserves so thoy will
he on a more ready basis.
f. si,- - -
THINGS
school assembly today to winners
-'-WATCH 1p5- - 1
. -.Where, ' Y Jv '
Not Regarded
U.S. Plane 'Shot Down
TAIPEI. Formosa (UP) Com
munist 'anti-aircraft shot down a
U. S. Navy plane today and the
mighy Seventh Fleet began
closing in for increased firepower
and anti-aircraft defense to pro
tect the evacuation of the Tachen
Islands. .
The U. S. Navy announced the
American plane, a Douglas Sky
raider embhot rw.ass attacbo k
down when it "mis-navigated"
over a Communist-held island. The
Navy said no retaliation was plan
ned against the Communists.
The pilot was identified as l.t.
(jg) W. J. O'Heren (home ad
dress unavailable). The two crew
men were not identified. All suf
fered only from the cold and minor
cuts and bruises.
The Navy did not regard the
shooting down of the plane as a
hostile act" and said no retalia
tory action is planned.
Ahead of Schedule
But a dispatch from the Seventh
Fleet reported the new protective
movement as the evacuation pro
ceeded far ahead of schedule with
removal of all organized civilians
and the beginning of demolition
work at the Nationalist base by
Chinese soldiers.
The plane Incident was the first
to mar the smooth running op
eration.
Ike Comments
WASHINGTON (UP) President
Eisenhower said today the belli
cose attitude of the Red Chinese
makes it idle to speculate about
a possible Formosan cease-fire.
However,' he said the evacuation
of the Chinese Nationalist Tuchen
Islands is proceeding without real
interference by the Communists.
And barring any toward incident,
he said, it would be completed very
soon. . ...
He did not regard the shooting
down vof an American carrier at
tack IJbmber by Red Chlhese. anti
aircraft as a serious incident be
cause the plane had wandered off
course and the crew wus nor
harmed.
The plane with a crew from Cali
fornia was shot down while cover
ing the evacuation of the island. A
pilot and two crew members werr
aboard. They suffered only slight
lacerations.
Bellicose Attitude
Mr. Eisenhower discussed at hif
news- conference the situation i
Formosa only in brief generalities
He was asked about the possibil
itv of a cease-fire being worked oul
between the Red Chinese and th
Nationalists. He replied that since
Stores Throughout Country
Trimming Prices on Coffee
CHICAGO (UP) Chain stores
across the nation cut coffee prices
as much as 16 cents a pound today
and housewives hoped a price war
was brewing.
The slashes dropped coffee prices
to their lowest levels In two years
In the big supermarkets. Coffee
experts said more wholesale price
cuts may be in the works.
So far, the cheaper coffee was
restricted to food chain brands.
National coffee brands which are
not processed by the chains had
not yet announced whether their
prices will go down.
$1.50 Last August
Only last August, a tight Brazil
ian coffee market sent prices
zooming up lo $1.50 a pound. There
have been price drops since then,
but the big break followed a Bra
zilian currency reform and height
ened competition from Mexico and
other South American countries.
Prices began to skid in ,New
in a "Don't Be a litterbug" pos
'Hostile Act' by Navy
I jv tt",--.. j- jr
in Ymmrr),
FIRST LINE OF DEFENSE If tho war waged here against disease by Nationalist Chinese medics
at Keelung, Formosa is Indicative of what s in store for any Red invader, then the Chinese. Reds. '
should think twice about any move toward Formosa. These specter-like medics seemingly descend
with a vengeance upon this latest group of evacuees from the islands of Tachen in a move com
batting pestilence. (NEA) .
the Communists had declined in
such a bellicose manner to discuss
a cease-fire with the United Na
tions, he thought it would be Idle
to speculate on that possibility.
Mr. Elsenhower said he had
heard of no real Interference with
the evacuation. It looks to him like
the operation will continue under
3lmllar circumstances, he said.
When asked whether the possi
ble use of nuclear weapons In de-
tense of Formosa would be limited
to any degree by agreements with
our Allies, he spoke guardedly
: . American Decision '
He said this country will act in-
lependently in any International
tltuatlon where our national Inter-
?sts are primarily Involved. He
ipparently does not regard the
meriean defense of iormosa as
laving any involvement with other
Miles except the Chinese National
ists.
Mr. Eisenhower said he has not
hought of a particular need for
ronterring with other nations about
he use of atomic weapons in the
lefense of Formosa. He said he
relieves that should the need for
:uch a decision arise, it would be
an American decision.
York early this week and spread
from coast to coast today as the
big chains posted new price tags,
Coffee prices in Bend today
were spotty, ymn most oi we
larger grocery outlets posting
prices of $.89 per pound on all
hrnnds. Others remained un
changed or varied a few cents.
Wholesale prices here this morn
ing still ran over $1.00 per pound,
In Portland, retail prices
dropped a few cents, most
decreases ranging from $05 to
$.08 per ' pound. No change In
small lot wholesale prices was re
ported. More drastic retail price
changes were noted elsewhere In
the state, particularly in Eugene,
where many grocers had been scll-
ine at a normal markup until to
day. ' Price in that city dropped
$.18 per pound in most outlets.
Several smaller Bond grocers
reported they could not afford to
drop retail prices until some
change In wholesale prices was
announced.
"We're already selling coffee at
a loss." one said, "and we can
afford to take a bigger loss all by
jursolves."
Libel Suit Filed
3y Bend Lawyer
A $2:10,000 libel suit against tho
Daily Journal of Commerce
Portland was filed today In cir
cuit court In Mulnomnh county by
Hurry A. English, 1'ical attorney
English alleges the Portland
publication erroneously slaied he
was bankrupt.
English asks for $150,000 on a
libel count and an additional $100,
000 on a right of privacy action.
On the libel count, the Bond at
torney socks $25,000 special dam
ages, $50,000 punitive damages,
and $75,000 general damages.
SEG Approves
Of Dixon-Yates
WASHINGTON (UP) The
Securities and Exchange Commis -
slon today approved the first phase
of financial, plans for construction
of the controversial Dixon-Yates
power project, ; y . L
The vote was 4 to 1. 'Democrat
Paul R. Rowen, Boston, disagreed
with the other four members of
the commission.
The commission's active gives
the two Dixon-Yates- sponsoring
companies permission to invest
the proposed 107 million dollar
plant at West, Memphis, Ark.
The SEC s ruling may be ap
pealed to the federal courts, but
opposition lawyers had no Immed
iate comment on their plans.
The second phase of the Dixon-
Yates financing, borrowing 100 mil
lions from banks and insurance
companies, will be submitted for
ECS approval later, , ,
Democrats have been trying in
various ways to block the contract.
Thoy Bdopted a new tack toduy,
suggesting that it be assigned to
some other agency so the Atomic
Energy Commission can concen
trate on atomic matters. There
was some Republican support for
this idea.
Democratic foes of the political
ly hot contract, plus AEC Com
missioner Thomas E. Murray, in
sist it is taking up time the AEC
should devote to more vital mat
ters, such as making H-bombs.
But Chairman Lewis LM Strauss
disclosed yesterday that the AEC
by majority vote, presumably 2
to 1, has rejected a rccommenda
tlon by the Democratic controlled
Joint Congressional Atomic Ener
gy Committee that it cancel the
Arrest Follows
Auto Accident
An Owl taxi driven by Donald
Eugene Osenton was demolished
early this morning in a collision
with a car driven by Kay Edwin
McGreer. The accident occurred
slightly before 3 a.m. as the taxi
turned Into an alley from Oregon
near the Intersection of Oregon
with Irving and Bond.
McGreer was arrested as 'drunk
by Investigating officers and held
in city jail in lieu of $100 bail. Mc
!rcer gave his uddress as Route
3, box Wi. Osenton's Is l.TM New
port. The taxi was rammed into the
wall of the Bond Auto Parts build
ing bordering the alley. Neither
driver was injured, according lo
police reports.
MoGrecr's car was reported ex
tenslvoly damaged. The officer in
esli'ntin( the crash reported
that McGreor's car knocked over
two parking meters on Oregon
street near the entrance to the al
ley before colliding with the taxi.
FIRE CAM, ANSWERED
A flue fire at the home of Wal
ter Dahms, 131 Congress, this
morning at 7:57 resulted In mem
bers of the Bend fire department
making a run. No damage result
ed from the flue blaie.
First Phase
Power Plan
I contract. ...... .
j Strauss has favored the contract
I while Murray has opposed It. The
third commissioner. Dr. WlUard
F. Llbby, a newcomer, has tried
to remain, neutral but presumably
sided with Strau. at a showdown "
meeting last Saturday. - 1 '
The committee, '- meanwhile,
wants to clear tin an apparent
contradiction In recent testimony
between Strauss and Murray over
the contract. It involves Strauss'
statement Feb. 1 before the lat
est AEC votethat he could recall
no discussion of the contract. In
AEC meetings since last fall when "
the AEC ratified the agreement. -
Wedding Rites
Performed from
Bed in Hospital
Special to The Bulletin
REDMOND Rev.- D. L. Pen-
hollow, Deschutes county commis
sioner, performed a wedding cere
mony from his bed in the Central
Oregon District hospital - here
Tuesday evening.
Married beside the hospital oea
were Jean Foote and Marlon R.
Bennett, of Parma, Ida.
The wedding had been arranged
when Rev. Penhollow, whose com
munity church is at Powell Butte,' ;
was stricken with a serious cold -
that bordered on pneumonia.:;
Rather than delay the wedding '
plans, Rev. Penhollow arranged to
be propped up in bed. r
Attendants were Mr. ana Mrs.
John Grossnlckel, Sr., residents of :
Parma and parents of the bride; .
John Grossnlckel, teacher In the
John Tuck school and brother of
the bride, and Mrs. PenholUwy
TKKES TOPPLED
Forest service officials and own
ers of private stands today were
investigating the extent ol tne ,
blow down of trees in the Meto-
liiw river area, result of the high
winds of earlier this week.
Some trees' were blon across
the road in the Metolius recrea
tion area. These had boon re
moved this morning.
FOUND
HOUSE
BY LOCAL THEATKK I'M
Imlruom. mcln hu. Cll U04-K
- - -
Had wonderful results 10
calls. Found just the house
we wanted. Well satisfied
with ad.
Anronf " ''
,lu not l to "I" " sMoont. Ju
k f.-r mi llv ,R'f' -hrle
II " Want nl ct m ltltl
40c
per day on weekly rate
Phone 56
The
Bend Bulletin
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