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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Oct. 21, 1933)
n Jonraal Circulation Dally average distribu ttoa for the Month ol September. 1S38 9.956 ATerage dally net paid M79 Member Audit Bureau ol Circulation City Edition Fair tonight and Sun day, valley fogs, frost tonight. Changeable winds. Local: Max. 80, mln, 38, rain 0, river -2.8 ft. Cloudy, westerly winds. Wl DO OUR Ml 45th YEAE, No. 251 Entered as second class matter at Salem, Oregon SALEM, OREGON, SATURDAY, OCTOBER 21, 1933 PRICE THREE CENTS ON TRAINS AND NEW STANDS FIVE CUNTS trejqn O Jo a Caoitalil STEMS EFFECT Me i " UU J 7 COOPERATION HELD KEYSTONE OF RECOVERY President Disdains 5 Year Programs Offered by Dictators Pulling Together Vital to Recovery Says College Speech Chestertown, Md., Oct. 21 VP) President Roosevelt called the na tion to the "spirit of cooperation" of the colonial days as he accepted here today an honorary degree from Washington college. Disdaining the "five year and ten year programs of some countries winch have a dictator," tne presi dent declared amid applause: "In this country, which has not dictator, we can, I think, move further toward our goal without giving It a definite term of years." But he emphasized the spirit of cooperation was the vital element for recovery and harked back to George Washington, a founder of this Institution, as a leader against class distinctions and the pioneer of cooperation. "We have accomplished much In the last few months," said the pres ident In his collegiate cap and gown, "but we can't reach the goal (Concluded on page 4, column 4) SENATOR LONG CALLED BY VET New Orleans, Oct. 21 VP) Senator fiuev P. Long today was challenge ed by a war veteran and a stock exchange president on statements he made at Frankitnton two days ago In sponsoring tew taxes- for Louisiana. Will P. Chandler, thrice com mander of the Lafayette, La., post of the American Legion said he re sented Long's purported statement that "most" of tne men serving In the United States army were "dragged in by the hair of the head." and asked the senator If he would repeat the statement before a called meeting of the Lafayette post. chandler also addressed an anneal to State Commander Larry Fox of the Legion in which he described the purported Long statement as "an Insult to every patriotic man who served his country." He asked the LcElon to make a formal answer. The other challenge resulted from Senator Long's reference to the New Orleans stock exchange as a "gambling house." John Dane, president of the ex change, issued a statement saying "our little exchange In New Orleans Is a true Investment exchange If there is any such thing in tne world." Senator Long referred to both the stock exchange and cotton ex change as "gambling houses" in his address in which he Intimated that taxes might be placed on tnem. FUTURE FARMERS Portland. Oct. 21 ( Chester Ste. tens. 18, of Amity, and Howard Smith, 17, of Canby, were selected as the outstanding members of "Fu ture Farmers of America," at the northwest meeting of the organiza tion here Friday. Lenley Wootcn, 20. of Chelan, Wash., and Lloyd Preter of Ellensburg, shared the honor with the Oregon lads. The four will be delegates to the national meeting of Future Farmers at Kansas City next month. First Beer Made In Salem Brewery To Be Cheer For Christmas Salem beer for Christmas cheer was promised by Frank Schmidt when the first "batch" of professionally and legally made beer in Salem since the spring of 1914 was started at the Salem Brewing association piani on South Commercial street at 10:30 o'clock Saturday morning. It takes approximately 60 days before the beer Is ready for the market. The plant for the present will turn out 50 barrels a day and suf ficient equipment has been installed to operate on a 250 barrel day schedule. The beer Is known as the Bavarian typ. thick mash beer but will be pale instead of dark. It Is possible to duplicate any known beer Schmidt states. Two brews will be handled each day. Good Evening! Sips for Supper By DON UPJOHN Hops, malt, water, et cetera, all the trimmings to make the world's best beer were dumped into the vats at the Salem Brewery today to start off the good work of making this a more cheerful city to live in. There the Ingredients will lie for 60 days before turned out as the completed product. Boy, imagine being sentenced to 60 days in a beer vatl After reading the Jacksonville Miner's rough and ready way of handling the news we're not so sure the editor shouldn't be arrested for contributing to the delinquency of a Miner. After watching the Salem Albany football game last night with James Nicholson, Jr., Esq., in action, the truth gradually dawned on us Just why James Nicholson, Sr., Esq., likes to stand in front of the First Na tional Bank Bldg., for all the world to see. Who wouldn't stand out In front of the bank building to be gazed at and ad mired if he had a son who can cavort around like that there son? Young Jim broke a lot of state records last night Including those for sprinting, high jumping, oroaa jumping, hurdling, long distance running, shot putting with a foot ball and numerous others. We don't know whether he ever had athlete's foot, but he's sure got athlete's legs. The boss says the four "fa" that Murray Wade Inscribed on the capitol dome on the front cover of the Bloe Book most stand for fee, II, fo, torn. . Don Trlndle approached us yes terday urging we get a campaign started to allow shooting of does next season. Everybody's too busy helping the NBA to get the dough right now to get up much Interest in tne otner ana. Ed Porter; the big tax cutter, dropped into the courthouse yester day and another shiver went down the spines of employes. "Just came over to see what I could buy up the high school tuition warrants for," said Ed. And we couia see enruugu Ed right off. He figures he can buy the warrants at a discount and then when he has 'em in his sock pay his taxes on his umpty ump thousands of acres of land. And when he pays his taxes the county will then have money enough to buy the warrants back. Hot dog, Ed. Salem beer Is in the vats And Salem beer's a wow, With Salem beer for Christmas cheer, We'll have real home brew now. If that there pome doesn't get a few brewery slugs out of Frank Schmidt it shows his aesthetic side needs to be hopped up a bit. PRICES SOUGHT BY STRIKING FARMERS Des Moines, Oct. 21 (IP) To guar antee cost of production farmers must receive the following prices for their products, according to the Na tional Farm Holiday association: Wheat $1.35 bushel; corn 92 cents, oats 49 cents, barley 73 cents, rye 77 cents, clover seed $19.74, tame hay $17.66 a ton, hogs $11.25 cwt., wool 40 cents cwt., chickens 24 cents a pound, butterfat 62 cents a pound, eggs 35 cents a dozen. Yesterday's best cash price for wheat in Chicago was 80 cents. Corn brought 38 cents; oats 30 cents, rye 55 to 67 cents, hay $6, hogs $4.70, beef $6, chickens 7-10 cents, and eggs 16 to 18 cents. ' This being the Chicago price, re ceipts of the farmer were lower by the amount of transportation, brok erage and storage fees. All the brewing equipment Is the finest European manufacture and was imported from Germany. Ar rangements are being made where by this foreign country may be li censed and manufacture the equip ment in this country by American firms. The kettle, vats and other equipment is of heavy copper with some bronze used. The Import duty alone was 27 V4 per cent of the pur chase price with an additional in ternal revenue tax of three cents a pound for all copper and bronze. VARYING VIEWS ON AMERICAN RUSSIAN MOVE League Sees Effort To Bring Russia Out of Her Isolation Common Front Against Japan In Far East Vis ioned In China (Br the Associated Press) Men and nations took a varying view today of developments fore casting American recognition of Russia. Comment flashed swiftly from the capitals of the world and from re mote comers as well as the word went out that President Mikhail Kalinin had accepted President Roosevelt's Invitation to enter into negotiations looking to possible rec ognition. In brief, the reaction was: Senator Borah of Idaho, former chairman of the senate foreign re. lations committee Praised Presi dent Roosevelt's move toward recog nition. Termed it "of supreme mo ment in the cause of peace. ' President William Oreen of the American Federation of Labor Said before recognizing Russia, United States should Insist that U.B.S.R. cease attempts to bring "world rev olution through force.' Senator Arthur Robinson, Indiana republican Asserted recognition would be "utterly foolhardy." Geneva International circles saw TJ. S. move a step toward bringing (Concluded on page 4, column 8- LEAGUE GIVEN GERMAN NOTE Geneva, Oct. 21 (IP) The league of nations lost its third member within 13 months today when Ger many handed In her notification of withdrawal. Mexico resigned In September, 1932, and Japan in February of this year. Mexico continues to be represent ed here, and it is hoped her with drawal will be annulled before it becomes effective in 1934. But Jap an and Germany have ceased all co operation. The loss of membership has been offset by tne adherence to the league of Argentina and Iraq. German Consul General Krauel handed the withdrawal notice to Joseph Avenol, league general sec retary, at headquarters today. His action was announced as follows: "Mr. Krauel, the German con sul general, presented the following note to the secretary general to day: '"Sir: In behalf of the German government I have the honor to in form you that Germany hereby de clares she withdraws from the league of nations In accordance with article 1, paragraph 3, of the covenant. " 'Ncurath (Baron Constantln Von Neurath, foreign secretary).'" 2000 FISHERMEN LOST IN TYPHOON Kobe, Japan, Oct. 21 (IP) One thousand fishing boats, wtlh 2,000 fishermen, were reported missing at sea today after a typhoon which devastated Shlkoku Island. Kobe, Japan, Oct. 21 (IP) Nine bodies had been recovered today of 64 persons missing from the steam ship Lashima Maru which found ered off Suma, en route to Kobe from Beppu. Of those missing 65 were passen gers and 9 members of the crew. Eleven passengers. Including an Englishwoman, and 49 on the crew were saved. The only other foreign passenger, also an Englishwoman, was missing. PORTLAND GIRLS WIN AT CHICAGO Chicago. Oct. 21 (IP) Helen Clark, Portland, Ore., was announced to day as the winner of the grand chamDionshln In the 4-H club can ning contest held at a Century of Progress exposition. Six Jars formed her display, com prising tomato cocktail, peas, beets, pepper relish, royal Chinook salmon and neaches. Her prize will be a scholarship to any college In the United States she chooses. Third and fourth places also went to Portland girls. Dorothy Hudson won the third place and Alice Wei bos fourth. Roosevelt To Speak on Radio 7 p.m. Sunday Washington, Oct. 21 VP) NRA of ficials are looking forward to Pres ident Roosevelt's Sunday night ad dress to the country in expectation he will express himself to allay farmers' objections against the re covery unit, delay In the public works program and disparity of farm and industrial prices. The president will speak by radio over the National and Columbia chains. No official would hazard any definite forecast of what the chief executive has In mind nor do they expect any departure in policy. Hugh S. Johnson, today followed up a statement over the resigna tion of Keith Neville, Nebraska state recovery board chairman, In (Concluded on page 4, column 6) DAKOTANS BACK BAN ON WHEAT Bismarck, N. D., Oct. 21 UP) All was quiet along North Dakota's wheat embargo front today. Most sheriffs, ordered yesterday by Gov. William Langcr to enforce the ban on snipments ox me gram, awaited formal Instructions. Railroads continued to transport wheat from the state In accord ance with Interstate commerce regu lations. By GOV. WILLIAM H. L ANGER . Bismarck. N. D, Oct. 21 aw am greatly Interested In ascertaining whether or not the noiiday strike will not ultimately result In the go vernors of other spring wheat pro ducing states also doing something definite to prevent tne shipment oi spring wheat to the markets. I be lieve that when the other governors hear the farmers, they will take-de finite action. I know from the letters, telegrams and telephone calls received that the overwhelming number of people are solidly back of me In declaration of the embargo. I was born in this state and never before on any occa sion have seen such unanimity of opinion. The merchants, bankers and busi ness people of this state are fighting the farmers' battle hand in hand. They know that the farmer has been given no code. Tney know tnat De fore the embargo was declared the price of wheat was 49 cents a bush el, and they realize that the embar go on amber Durum wheat and on spring wheat has already had a fine effect on the market. They know too, that President Roosevelt Is in need of every ounce of backing that he can secure and that if the price of wheat and the products of the farmer rise and get where they should be that the NRA program will have a very much greater chance of success. POISON DRUNK BY ORCHARD WORKER Mcdford, Ore., Oct. 21 (P) Walter Hart, 40, an orchard worker of the Table Rock district, lies critically ill In a local hospital from drinking a poison solution mistaken for water. The two Jugs, alike in appearance, were beneath a tree when Hart took the drink. Realizing his mistake, he aplled his own first aid remedies and said nothing about his condition. Yesterday he became seriously ill and was removed to the hospital. Doc tors say he has a slight chance of recovcrnlg. The poison solution Is used in or chards for blight control and re sembles water. JOHNSON PRAISES ROOSEVELT'S ACTION San Francisco, Oct. 21 (IP) Hiram W. Johnson, senior United States senator from California, today prais ed President Roosevelt's initiative to resume diplomatic relations with Russia. "The president's Idea Is excellent and timely," said Senator Johnson. "Obviously the end sought Is a re sumption of diplomatic relations. I am one of those who believe recog nition ought to occur. I hope the conference with the president and the Russian envoy will have a happy termination.'' ICELAND VOTING ON PROHIBITION REPEAL Reykjavik, Iceland, Oct. 21 (IB Prohibition's last stronghold aside from the United States was expected to fall today with a national refer endum of Icelanders on continuance of the present laws forbidding im port or sale of liquor of above 21 per cent alcoholic content. RECOGNITION HAILED AID TO WORLD PEACE Russians See Better Prospects As Result of Roosevelt Move Date of Litvinoff's Depar ture Not Announced Results Expected Moscow, Oct. 21 VP) Russia hail ed as a boon to world peace and to better trade relations today its agreement with the United States to negotiate concerning American recognition to the Soviet union. Events moved swiltly after Presi dent Mikhail Kalinin announced he had accepted an invitation from President Roosevelt, dated October 10, and added he would send For eign Commissar Maxim Litvinoff to Washington to represent the U.S. S.R. Plans were rushed for Litvinoff to depart for the United States with in a very few days. Government officials gathered to consider the points around which the Washing ton conversations should be center ed. 'President Roosevelt's action can only serve the cause of world peace and encourage friends of peace in the whole world," a foreign office spokesman exclaimed. As the developments were greeted with cheer and enthuslams through out the union, leaders Indicated Russia hopes for a three-fold re (OOncluded on page 4, column 6) BOMBS FEATURE MINERS STRIKE Springfield, 111., Oct. 21 (IP) Two bombs exploded near the homes of working miners here today as fac tional mine union warfare broke out anew. The bombs were characterized by police as loaded with unusually powerful explosives. They were set off on the rear of homes of United Mine Workers of America In a miners' community in southeast Springfield near the Peabody Coal Co. mine which resumed operations under a wage scale contract with the United Mine workers of America today. There were no pickets at the Pea body mine from the ranks of the Progressive Miners of America which have been combatting opera tion of mines working under U. W. A. of A. agreements. None was injured by the bombs but state soldiers and county and city police were mobilized in the vicinity. No arrests were made. Meanwhile a diminished army of Progressive demonstrators who marched on the capital Thursday with their auxiliary remained in the city today in a gesture of protest. $1,500?0QQ LOSS IN COLLEGE FIRE St. .Tosenh. N. B.. Oct. 21 VD Fire still gripped the new wing of St. Joseph's university at noon to day after destroying all other parts of tne university except a gymnusi urn and rink. The 300 students at the institu tion, operated by the Holy Cross order, and the 16 brothers and 15 priests were In the new chapel when the fire started last night. The students and the staff were unable to save their belongings. First estimates of the damage to five university buildings, six barns, and five structures off the campus put the probable loss at (1,500,000. No one was Injured. JAPAN WELCOMES NORMAL RELATIONS Tokyo, Oct. 21 VP) General 8a dao Arakl's curt "Japan need not be apprehensive at the prospect of American recognition of the Soviet," epitomized today the official jap aneso reaction to moves in that di rection. General Araki is minister of war. A foreign office spokesman voiced the government's diplomatically cor rect position when be said, "Japan would welcome a resumption of normal relations with her two huge and powerful neighbors. "I do not believe such a develop ment would in any way alter Ja pan's policies toward Russia or Japan's position In the Orient." Replying to a suggestion that recognition might stiffen Moscow's attitude toward Japan, the spokes, man said, "I can't see how the So. vlet could be itiUer." GOVERNOR SEEKING TO REDUCE RELIEF, COSTS THRU ROADS Concentration of Oregon's PWA Loan Money On Highway Work Indicated As Meier Plan for Cutting Amount of New Tax Money Needed for Direct Relief in State By HARRYN. CRAIN Members of the legislature, called to convene here on November 20 in special session, are looking forward with un usual anticipation to the recommendations to be laid before them, particularly with respect to unemployment relief, by Governor Meier. For the most part the lawmakers confess themselves to be entirely at sea as regards unemployment relief meth- ods, and considerably awed by the estimates of required relief revenue they will be called upon to provide. In the whole picture before them now there is but one ray of sun shinethe possibility that the gov ernor out of extensive studies of the problem he Is known to be making may find a means of stimulating employment and thereby reduce the mil lor roller which must be fi nanced from tax revenues. Specifically, the legislators are closely watching developments in relation to Governor Meier's pro posal that highway construction op erations, financed through PWA loans and grants, be materially In creased to provide work relief. From authentic sources it has been learned that the governor has (Concluded on page 6, column 0) RETRACE STEPS OF ARSONIST Berlin, Oct. 21 (IP) Hie exact steps of Marlnus Van Der Lubbe, Dutch ex-communist and chief de fendant in the Reichstag fire trial, through the Reichstag; building; on the night it was fired, February 27, 1933, were retraced today by the court, defendant and newspaper men. The strange procession solemnly proceeded along Van Der Lubbe's line of march minutely examining a score of points at which the de fendant allegedly ignited the build ing using prepared shirts and tow els soaked with Inflammables as tinder. During the course of the Inves tigation it transpired that Van Der Lubbo used his overcoat, undershirt and waistcoat to light curtains with which he spread the flames throughout the Reichstag. All evidence observed during the retracing of the Dutchman's steps created an impression that Van Der Lubbe must have run through the corridors at breakneck speed In order to accomplish the firing of the building by himself in tne onei fifteen to seventeen minute period in which he is claimed to have done the deed. BRYAN SEES SUCCESS IN FARMERS' STRIKE Lincoln, Ncb Oct. 21 (P) Gover nor C. W. Bryan today said he saw in the farm strike the possibility of more success in shorter time than the government program for raising produce prices. He conferred by telephone at noon with F. C. Chocker, secretary of the Nebraska Farmers Holiday associa tion, and received assurance, Bryan said, there would be no disorder for employment of force and the move ment would be carried out In a dig nified manner. Without endorsing the strike, he said it would bear watching as a movement to Improve the farmers' condition. 3 STATE POLICE TO BE DISCHARGED - Portland, Oct, 21 (IP) The release of three members of tho Oregon state pollco to reduce cost of game law enforcement, was announced yesterday by Charles P. Pray, su perintendent of police. The men were Duncan McKay of Burns, Roy M. Parr of Rcedsport, and C. P. Smith of Seaside. Two others will be released later. The established posts from which the policemen op erated will be abandoned. NURSERYMEN TO SUBMIT A CODE Portland. Oct. 21 (IP) Oregon As. soclatlon of Nurserymen will submit a code of fair practice to the agri cultural adjustment administration. The code was drawn at a meeting here last night of persons engaged In all branches of the Industry, rep resenting districts Including Klam ath Falls, Corvallls, Salem, Hood Ri ver and Grcsham. EXTRADITION OF INSULL ARGUED Athens, Oct 21 (LP) Samuel In sull, 74-year-old American utilities magnate, appeared before the court of appeals today to oppose effort of the United States government to extradite him to Chicago for al leged violation of the American bankruptcy laws. Chief Justice Panyglrakls com municated to him the United States' demand for extradition. Then State's Attorney Antonlos Riganatos began his statement. He seemed exhausted by his long tedious prep aration or the case. Riganatos, after pointout out the right of persons accused of crime to seek refuge, said the Interest of Justice required the punishment of culprits wherever they might be found. Countries made extradition treaties, he Bald, to prevent Influx of criminals. Also, he said, the treaties protected personal free dom; and he argued that extradi tion was not a danger to an lnno- rcent man because Justice was the same tne world over. Flvo indictments, said the state's attorney, had been brought against Insull In the charges that he de frauded shareholders in the Insull Utilities and Securities corporation by paying dividends on debentures from fictitious profits, borrowing huge sums to do so. He misled the public, Riganatos continued, by keeping up fictitious prices for his shares on the stock exchange. In sull's companies were nothing but an assembly of stock gambles, he said, and never made profits. TRAIN DERAILED Havana, Oct. 21 (P) The locomo tive and two baggage cars on the Santiago Express were derailed early today when an explosion blew up nearly 400 feet of track near the town of Empalmc, Matanzas prov ince, about 50 miles from Havana. The explosion came amidst un settled labor conditions that grew more serious steadily, despite the government's vigorous moves to set tic the difficulties. Railroad connections between Ha- vana and points cast of Matanzas province were stopped by a strike of railroaders who seek annulment of a rule which prevents the trans fer of employes from one division to another. The strikers claim the rule pre vents many veteran employes from taking Jobs on other divisions on the basis of their seniority In the event they are laid off because of a lack of business in their own di visions. Meanwhile, as police and soldiers were placed at car barns to prevent a threatened strike of tram workers sympathizing with the railroaders, Havana milk distributors and bakers went on strike. Shaw Little Eleanor Desch start ed her first year of school at the Rock Point school last week bring ing the enrollment up to 20. Obstacles Appear As Administration Faces Russian Recognition (Ooprrltht. 1033. by United Prcu) Washington, Oct. 21 (U.R Formidable? obstacles in the path of American recognition of Soviet Russia will confront President Roosevelt and Maxim Litvinoff, Russian foreign White House to bring the two na tions together after 16 years of dip lomatic estrangement. Political experts generally expec ted the obstacles to be overcome and recognition to result from their series of talks. The goal Is the exchange of am bassadors between Washington and Moscow and the stimulation of pro fitable trade between two of the world's most populous and richest nations. Tho obstacles they must overcome are; LONG BATTLE PREDICTED BY FARM LEADERS Extent of Compliance With Strike Order Not Yet Apparent Many States Take No Ac tion Federal Officials Ask Time Des Moines, Oct. 21 UP) The "new deal" for agriculture Is "the same) old stacked deck, with the same old dealers," Mtlo Reno, president of the) National Farmers Holiday associa tion, said as he officially proclaimed the opening of a national farm strike at noon today. we have reached the point wber statements and promises are men gestures, to lull the farmer to sleep that his enslavement may be com pleted," Reno said In a letter sent to the 23 state presidents of Holiday associations. He termed the strike a "non buy ing, no paying program." "We have been patient and lone suffering," Reno said. "Our demands. petitions and prayers have been made a political football for Jingo politicians, who are controlled by tn money lords of Wall street. "The strike agreed upon in the May 3 meeting, to go Into effect on (Concluded on page 4, column 1) ' COUNTY TAXING RATJOSJJSTED The state tax commission today announced ratios of assessed valua tions to cash values for the year 1933. The ratios are used In comput ing the assessment of utilities. The ratios for 1032 and 1933 fol low: Baker 67 and 66, Benton 52 and 52, Clackamas 42 and 43, Clatsop M and 61, Columbia 61 and 61, Coo 62 and 62, Crook 57 and 57, Curry 67 and 67, Deschutes 42 and 43, Dou glas 61 and 62, Gilliam 74 and 72, Grant 68 and 64. Harney 70 and 68. Hood River 61 and 66, Jackson 65 and 64, Jefferson 74 and 74, Josephine 65 and 65, Klamath 53 and 50, Lake 74 and 68, Lane 53 and 53, Lincoln 71 and ov, Linn 53 and 50, Malheur 49 and 49, Marlon 53 and 52. Morrow 72 and 72, Multnomah 53 and 53. Polk 44 and 43, Sherman 73 and i, Tillnmook 54 and 54, Umatilla 68 and 69, Union 65 and 61, Wal lowa 65 and 64, Wasco 68 and 62, Washington 46 and 47, Wheeler 71 and 72, and Yamhill 53 and 52. FOWLER TO HEAD STATE PRINCIPALS E. D. Fowler of Astoria was today elected president of the State High School Principals' association in session here. Fred Wolf tf Salem was elected vice-president and R. W. TavenneT, also of Snlem, was re-elected secretary-treasurer, The financial plight of Oregon's public schools was charted for th principals by Charles A. Howard, state superintendent of public In struction. Howard renewed his re commendation that permanent fi nancial assistance be given tht schools by the state. Action will be taken late today on a number of committee reports. In cluding a recommendation thai students be given school credit for outside music studies. 1 Financial claims. Russia's obli gations to the United States are of three kinds: (1) The defaulted $187,000,006 loan made from the TJ. S. Treasury to the Kerensky re glme. (2) Some $90,000,000 of mis cellaneous notes jiven Amerclan bankers by the Czarlst government. (3) Individual claims of American citizens for property confiscated by Russia, totaling about $300,000,000. 2 Communist pronaganda In the United Stntt-s. The Soviet union, tt Is understood H orrnired to nego- (Concluded on page 4, column 6)