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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Aug. 21, 1946)
Ceiling Prices Of June 30 Back on Meat Dairy Products Freed Of OPA Control Unless Prices Soar Washington, Aug. 21 W Price ceilings on meat, ordered re-established by the decontrol board, probably will go into ef fect at retail stores about Sept. 3, an OPA official said today. This tentative arrangement, subject to approval by the ag riculture department, will put back retail ceilings on meats 12 days later than OPA previous ly had planned. While directing restoration of ceilings on meat, the price decontrol board decreed that milk, butter, cheese, and all other dairy products should re main free of controls. Preparing Schedule OPA and agriculture depart ment officials expect to set up by nightfall a definite time schedule for re-imposing the meat ceilings. Previously, OPA had announced controls would be re-Invoked at 12:01 a.m. Fri day. Revised plans call for re-establishment of controls Friday on live animals only, with packer and wholesale ceilings following a few days later. An OPA official said this procedure would "give the in dustry a chance to clean out meat supplies acquired at high er prices during the period of no control. The decontrol board's restor ation of meat price ceilings brought varying reaction. And the CIO cost of living committee said the decision to keep dairy products free of con trols "will bring greater infla tion to the American people. Decontrol Board Rules On other points in its first de cision, the congressionally cre ated decontrol board: 1. Ruled against restoring ceilings on nearly all grains. 2. Authorized livestock and meat subsidies to be paid again, at June 29 rates. 3. Ordered price controls re' established on soy beans and cotton seed products, including saiaa ana cooKing ous. Shortly after the three-man panel announced its unanimous rulings last night, OPA Chief Paul Porter told a reporter: "Restoration of subsidies on meats means-we can re-establish ceilings at or close to June 30 . "This is, the case on beef, pork 'and veal. We have not decided yet on lamb." Effective Friday OPA had announced earlier that ceilings would become ef fective Friday on any commodi ties recontrolled by the board. Officials said today, however, that a plan under consideration calls for putting ceilings on live animals Friday, with a time lag in each case before they apply at the packer, wholesale and re tail outlets. (Concluded on Pane 9. Column 8) Meat Supplies In Oregon Low Portland, Aug. 21 (IP) Low meat supplies in retailers' and slaughterers' coolers caused by uncertainties over price decon trol board action were reported today. H. E. Carlson, secretary of the Portland Independent Re tain Meat Dealers' association, said stocks may be short until packers are assured of profita ble operations. Retailers generally expect their business will be more nWncant with fawar niiclninw complaints with restoration of price ceilings, Carlson asserted. Prices in the Portland area were generally 25 percent above June 30 level when OPA ceil ings lapsed. Meanwhile another meat in dustry spokesman warned that black marketing of meat will get a new lease on life. R. K. Clark, president of the livestock brokerage firm of Bodine and Clark and former secretary of the Portland live stock exchange, criticised a free market on grain and ceilings on meat. "This order makes impossible the feeding of grain to live stock," Clark declared in pre dicting higher prices on the black market. Soap to Remain Hard to Secure New York, Aug. 21 (IP) Soap will stay on the hard to get list for months to come, industry sources predicted today. Soap supplies are said to be lower than at any time during the war, and producers do not expect much improvement at least until the first of the year. "Never before has the mod ern soap industry faced the scarcity of fats it does today," said a spokesman who asked that his name be withheld. apital 58th Year, No. 198 "SSpjiSSftSS Salem, Oregon, Wednesday, August Reds Establish Own Regime In Manchuria Nanking, Aug. 21 (IP) China's communists announced today establishment of their own gov ernment of Manchuria, and said they would not discuss partici pating in any coalition govern ment of China until all of the current fighting is stopped. Some informed quarters here said that establishment of such a coalition had become "the last hope" of mediators seeking a permanent peace. Deny Mobilization Communist spokesmen denied that their party was calling for all-out mobilization against Chiang Kai-Shek's forces, and said they "have no desire" to overthrow his national govern ment which is strictly a one party regime now. But they added: ' "The first thing is to stop fighting. Then we can talk about reorganizing the govern ment." Some observers here said that General Marshall and Ambassa dor John Leighton Stuart, hav ing failed to stop the shooting first and talk politics later, now were trying to reach a political accord first. Political Accord Chiang, these sources said, had asked Marshall to request a list of ministries which com munists would demand in any coalition government. Manchuria's new red admin istration, the communists' offi cial radio at Yenan announced, is "the provisional supreme ad ministration for democratic Manchuria," composed of 86 elected delegates from all sec tions, and aspiring to "a peace ful, prosperous Manchuria by uniting all. . . ." There was no report that it was operating directly under Yenan, the communist capital, but its avowed goals were simi lar to those of the Yenan gov ernment. ' Poland Faces BritishSanctions London, Aug. 21 u.R) The foreign office said today that the British government was prepared to apply economic sanctions to Poland if the War saw regime failed to carry out the Potsdam agreement for free and unfettered elections in that country this fall. A foreign office spokesman said Britain would refuse to re-' turn Poland's gold reserves, brought here by the wartime exiled government, if 'election provisions sketched in Anglo American notes to Warsaw yes terday were not observed. "The first and most obvious sanction in the event the grave irregularities of the recent ref erendum also take place during the promised election would be for us to refuse to ratify the recent economic agreement pro viding for the return of the Pol ish gold reserve after deduction of the expenses of the exile government while in London," the spokesman said. The joint notes from the United States and Great Britain accused the Polish government of ignoring the agreement for free elections in Poland, and charged that grave irregulari ties occurred in the Polish ref erendum last month. 15 Men Rescue Priest Portland, Aug. 21 (IP) Fif teen men were needed to lift a car from the Rev. Leo Lina hen, Oswego priest, when it ov erturned on him last night. His injuries were reported not serious. Russians Refuse to Enlarge Allied Council in Japan Tokyo, Aug. 21 (U.R)-Gen. Douglas MacArthur's plan for the allied control council to admit representatives of the 11 powers wnicn waged the Pacific war met the Russians. Lt. Gen. Kuzma Derevyanko, the Russian mem ber of the control council ap parently considered the plan a move to curb Soviet influence. Derevyanko read a statement to the council saying the pro posal was "not within the pur view of the council and 1 can not even discuss it." MacArthur announced h i s plan August 13 to invite powers "not individually represented on the (four power) allied coun cil for Japan informally and unofficially to join the council's discussions and contribute their views on matters which may be brought before the council." China previously had accept ed the proposal with reserva tions, and W. MacMahon Ball, representing the United King dom, had agreed to refer the Chief of Army Denies Charges Of La Guardia Berlin; Aug. 21 U,R Gen. Jo seph T. McNarney, American commander in Europe, today publicly rebuked UNRRA Di rector F. H. La Guardia and de scribed as "baseless" La Guar dla's charge that American occupation forces had deliber ately opposed UNRRA's human itarian and repatriation work in Germany. McNarney pledged continued haven in the United States zone for Jewish and other persecut ed displaced persons. He said there probably were 100,000 Jews still preparing to flee Poland. Simultaneously, the Ameri can commander revealed at a news-filled press conference here, that a Russian woman spy "a secret agent of the NKVD" had been seized a month ago while in the employment of UNRRA. He said she was being turned over to Soviet authori ties today. McNarney said, however, that reports of UNRRA serving as an "umbrella"' for Russian agents and criminal elements engaged in smuggling and dope peddling were "exaggerated. "We know of very few cases of agents of any type who op erated under the cloak of UNRRA," he said, "and only one has been positively identi fied as an NKVD agent." He said he was withholding details until the woman-spy was in So viet hands. La Guardia's Charges McNarney said the UNRRA director had made the follow ing charges against American occupation forces, and gave the following answers: 1. That the army in Germany opposes continuation of UNR RA in the field of care and re patriation of displaced persons. "This statement is baseless and incorrect," McNarney said. 2. What McNarney described as a "sneer" at the army's ef fort to provide 60 to 90 days rations for Polish refugees who would return to their homes "It had been necessary for occupation forces to delay car. rying out this program as or dered by the secretary of war because of a shortage of food at that time." That the army was "reluc tant" to remove a handful of former London Polish liaison officers from the American zone who had been aiding in handling Polish displaced per sons. McNarney said that under an agreement with Warsaw liai son office he had been care fully removing the London Poles so as not to cause undue excitement in the displaced persons camps. He said the Pol ish officers had done "yeoman service" and were "literally lifesavers." Building Lumber Prices Raised Washington, Aug. 21 (U.R) The OPA today hiked ceiling prices of four essential build ing materials from five to 10 per cent under requirements of the new OPA law. Boosted were ceilings on stock millwork (10 per cent), pine stock millwork and Doug las fir doors (nine per cent), and stock screen goods (five per cent). OPA said the price increas es, effective today, are manda tory under provisions of the new law requiring distributors' percentage margins to equal those of March 31, 1946. with a flat refusal today from matter to commonwealth gov ernments concerned. Chairman George Atcheson Jr., representing the United States, pointed out that all 11 nations are included on the Far East commission in Washington He said an enlarged council would afford "an effective agency for full allied coopera tion. In China, Lt. Gen. Shih-Ming said he was instructed that his government had no objection to inviting others, but would agree only if the plan were accept able to a majority of the pres ent four members. Ball said he thought the pro posal should be submitted to the foreign ministers of the present members, because it was too im purtant an issue to be decided in Tokyo. Deported Jews at Cyprus VP) Jewish immigrants make their way down the gangway of a British transport at Cyprus on their way to the internment camp set up for them after their departure from Haifa, Palestine. (AP wirephoto via radio from Cairo, Egypt.) Albanian Envoy Attacks Greece and Italy 1 Paris, Aug. 21 (IP) The prime minister of Albania, Enver Hoxha, demanded today that the peace conference seat him as an equal and asserted that the Balkan state never would consent to any changes in its borders "for those frontiers are sacred." Many of his remarks were directed against Greece and its prime min- ister, Constantine Tsaldaris' also a target of Soviet Russia Referring to Tsaldaris' mention of the Albanian Quisling gov ernment during the Italian oc cupation, he asserted that all who remained had been killed and "those war criminals who fled are in the best hotels in Rome." He demanded that the peace treaty "put an end to the ag gressive, imperialistic policy of Italy.'"' - Hoxha asserted that Italy caused 3,000.000,000 gold francs damage in Albania and demand ed "as an absolute right, to be allowed to determine the amount and payment of Italian reparations." Hoxha received a long burst of applause and so did Alfonso R. W. Diaz, spokesman for Mex ico, who spoke next. The Mexican ambassador to Paris expressed his country's hope that "a just and equitable peace will be concluded" with Italy that "will permit her to join with dignity in the concert of nations." Speaking of the defeated en emy nations, the Mexican spokesman said: "Mexico simply hopes to pre vent the damages caused by a war imposed on her, from fall ing on the Mexican people." As the speeches droned on, an informant in the peace confer ence secretariate said 250 "un fundamental" amendments to the draft treaties and an unde termined number of others had been presented by peace con ference members. An Ameri can source said the United States had proposed none; that its position was already stated in the five treaty drafts. The deadline for filing amendments passed at midnight. Jap Bandit Adopts ild West Style Sasebo, Japan, Aug. 21 Pi Striking in wild west style, Sa scbo's bicycle bandit held up another branch bank Monday and escaped with 130,000 yen. The bandit parked his bicy cle in front of the bank, walk ed in brandishing a pistol, pumped one shot into the mana ger and another into the ceiling to frighten customers, and dipped into the till. Then he ran from the bank, leaped onto his bicycle, and pumped briskly away. British Proposals Rejected by Egypt Alexandria, Egypt, Aug. 21 VP) Premier Ismail Sidky Pa sha presented to Lord Stansgate today the Egyptian delegation's decision to reject British pro posals for revision of the 1936 Anglo-Egyptian treaty. The premier and Lord Stans gate, acting head of the British delegation in the prolonged neT gotiations, met for two hours at Antoniades palace. Later they were photographed together. Joimial 21, 1946 Forest Fires Under Control (By the Associated Press) Fire crews and forest para chute jumpers working on scat tered fires along the Cascade range from Roseburg, Ore., to the Canadian border today were reported having little trouble. Most of the lightning fires started during yesterday morn ing's thunderstorms were snuf fed out by prompt arrival of smoke jumpers in the isolated regions while others were be ing reached today. Forest service headquarters at Portland reported blazes in Washington and Oregon were minor on federal lands and no important fires were reported on private or state timbered tracts. Smoke jumpers reached many of the 37 fires on the Chelan national forest and 53 on the Mount Baker national forest area in Washington. Largest burnt over area in the two states was a 250 acre tract in the Fremont national forest where a fire was brought under control by 250 men. Airway Liners to Pass-up Yugoslavia Vienna, Aug. 21 U.R U. S. headquarters announced today that Pan American Airways had altered its flight route from Vi enna to Istanbul to avoid fly ing . over Yugoslavia, and will not make stops at Budapest and Belgrade because landing priv ileges for American commercial planes were refused. Under the new plan, flights will be made from Vienna to Na ples and thence to Istanbul, the announcement said. Those stops are on the regular route from New York to New Delhi. So far, Pan American has not flown farther east than Vi enna, but Belgrade and Budapest had been scheduled to become part of the route to the orient, Shot Out of Speed Plane by Ejection Dayton, O.. Aug. 21 IIP) The air materiel command disclosed today that First Sgt. Lawrence Lambert, 29, of Berkeley, W Va, was the first human in the United States to be shot out of a high speeding aircraft with the aid of the newly developed pilot ejection scat. Lambert was shot from P-61 flying at more than 300 miles per hour at an altitude of 6,000 feet over Patterson field. He squeezed a handle setting in motion the automatic apparatus that catapulted him from the plane, separated him from his scat in the air, caused the parachute to open and land ed him safely. Price Five Cents K-r.ciinack$ By Yugoslavs IB- the Associated Press Premier Marshal Tito declar ed in a speech published today that Yugoslavia wanted peace, "but not at any price," and up held Yugoslav action against American fliers as defense of her sovereignty. He told iron workers of Jes cnice that "even whole squad rons" of planes had violated Yugoslav territory; that "the question today is one of true democracy versus reaction." The Yugoslav "strong man" acknowledged United States planes had been forced down and that he had witnessed one of the incidents, but denied the plane he saw had been lost in the clouds or had been fired upon after being downed. To Visit Tito U. S. Ambassador Richard C. Patterson arranged to take up the matter of the downing of two American C-47 transports by the Yugoslav air force per sonally with Tito tomorrow at the marshal s summer palace in Bled. Patterson and his party will fly to Bled in the embassy's C-47. Gen. Joseph T. McNarney an nounced in Berlin that Ameri can air transport flights be tween Vienna and Udine, Italy, had been cancelled temporarily as a result of the downing of the two planes. McNarney said he planned to confer with Gen. W. D. Morgan, allied commander in the Medterranean, on measures to protest the transports. Admits Attack The Yugoslav ministry of for eign affairs acknowledged that Yugoslav fighters attacked the U.S. transport which crashed in flames near Bled Monday and implied some of the crewmen were killed, but referred to the incident as "a regrettable acci dent." Two of the five mem bers of the crew parachuted out. Their fate has not been as certained. A U.S. slate department note had demanded assurances that there will be no repetition of the incidents. In Paris, where Secretary of State Byrnes is attending the peace conference, it was stated that the secretary had had a frank talk with the Yugoslav Vice Premier Edward Kardelj yesterday. 3200 Casualties Calcutta Riots Calcutta, Aug. 21 OJ-PJ An Indian government spokesman said today that three days of bloody Hindu-Moslem commu nal riots last week were respon sible for 3,200 casualties, includ ing 444 dead. Those were casualties report ed to hospitals, the spokesman said. There was no way of indicat ing how many other casualties there were. Eyewitness ac counts from Calcutta told of innumerable bodies being thrown into sewers and burned. The spokesman said that be tween 20,000 and 30,000 persons had been rescued or evacuated from the time the riots started Friday night until late Tuesday. The situation improved on Monday and Tuesday but spor adic incidents continue to be reported, the spokesman said. Rescue trucks will not be needed after today, he said. Cal cutta street cars appeared for the first time in days today They carried armed British sol diers, however. An increasing number of shops opened this morning and hotel and government office em ployes began to trickle back to work. Sweden, Iceland, Afghanistan Win Admission to U.N. Lake Success, N. Y., Aug. 21 (IP) Sweden, Iceland and Afghani stan passed muster for membership in the United Nations in a screening report handed up today to the security council. The report carried the elements for further wrangles in the council over the disposal of six other would-be members: Albania supported by Rus sion, opposed by the United States and Britain. Outer Mongolia sponsored by Russia, opposed by China. Siam opposed by France and Russia. Portugal, Ireland and Trans jordan opposed by Russia. In a strongly worded argument before the prolonged final ses sion of the council's member ship committee here last night, Chairman Jerzy Michalowski of Russia-backed Poland challeng ed Transjordan's membership bid as premature. He touched upon the Pales- United States Formally Declares Outright Opposition to Russian Demands Dardanelles Control American Note to Moscow Along With Angry Protest to Yugoslavia Sends Relations With Soviet Lands to New Postwar Low Washington, Aug. 21 i'Pi In an historic claim to direct interest in Black sea affairs, the United States today formally declared its outright opposition to Russian demands for a share in military control of the Dardanelles. The American note to Moscow was one of two factors that sent relations between the United States and countries within the Soviet orbit plummeting to a new postwar low. The other was this country's angry protest to Yugoslavia over the "outrageous performance" of Yugoslav fighter craft which attacked and forced an American transport plane to crash land. Premier Marshal Tito reported that his country wants peace "but not at any price." Bearing the signature of Under Secretary of State Dean Ache son, the Dardanelles note expressed the "firm opinion of this government that Turkey should continue to be primarily responsi ble forlhe defense of thostraits. f Pointedly, it noted that the Russian proposal contained no reference to the United Nations a clearcut reminder that an international organization has been set up to handle all such security problems. "Should the straits become the object of attack or threat of an attack by an aggressor," the note declared, "the result ing situation would constitute a threat to international security and would clearly be a matter tor action on the part of the security council of the United Nations." Up to United Nations Asserting that this govern ment holds that the "regime of the straits" should "function in a manner entirely consistent with the principles and aims of the United Nations," Achcson reaffirmed United Slates wil lingness to participate in any conference to revise the control policies. But he made it abundantly clear even within the confines of polite diplomatic phraseology that the United States would not sit idly by in any soviet effort to establish herself in a favored, if not dominant posi tion in the straits. "It is the view of this gov ernment," Achcson said in his note, "that the regime of the straits is a matter of concern not only to the Black sea pow ers, but also to other powers, in cluding the United States. 3 Proposals Approved "This government cannot, therefore, agree with the soviet view that the establishment of the regime of the straits should come under the competence of the Black sea powers to the ex clusion of other powers." The American note, however, did set its seal of "general agree ment" on three of the soviet proposals, namely: "1. The straits should be al ways open to the passage of mer chant ships of all countries. "2. The straits should be al ways open to the passage of warships of the Black sea pow ers. "3. Passage through the straits for warships not belong ing to the Black sea powers shall not be permitted except in cas es specially provided for." The note itself was drafted after consultations with the British. Copies were sent to Britain, France, Turkey, Greece, Yugo slavia, and Romania who were, along with Japan, signatories to the Montreaux convention under which the straits are now con trolled. All Clear Signal In Typhoon 'Lilly' Tokyo Aug. 21 U.R The al liod Seventh army air forces weather station flashed the "all clear" signal today on the ty phoon "Lilly which Is now over the mountains of Korei and steadily weakening. The Japanese central meteor ological observatory however reported low atmospheric pros- sure in the Mariannas islands which was said likely to develop into another typhoon that might reach Japan about September 1 - ' tin question and Britain's rela tions with the former British mandate of Iraq, where British imperial troops are based, tin der a treaty of military alii ance, ready to move into the southern Iran oilfields. Russian Representative Alcx ei Krasilnikov gave his en dorsement to Sweden and Ice land "with pleasure" after hnv ing previously approved only Afghanistan. Those three coun tries alone arc unopposed out of the nine applicants the security council will pass upon, with the veto power held by each of the Big Five. Final approval is up to the general assembly, before which the applicants must get a two-thirds majority for membership. Army Transport Flights Cease Berlin, Aug. 21 (U.R) Gen. Joseph T. McNarney, U.S. com mander in Germany, today an nounced cancellation of all American army transport flights between Italy and Ger many and Austria. McNarney told a press con ference that the flights were cancelled, effective yesterday, pending clarification of free air passage over Yugoslavia. Air travel from Germany aiKI Austria to Italy will be resum ed, McNarney said, as soon as he could reach agreement with Lt. Gen. Sir William D. Mor gan, allied Mediterranean com mander, on methods I. ensure safe passage. McNarney said he had not been advised by Washington that army commanders would take what initiative is necessary in providing fighter escort or other means for safe flights. Cancellation of service was the direct result of two inci dents in which Yugoslav fight er planes forced down with gun fire American transport planes which entered a cornor of Yugo slav territory while flying from Austria to Italy. To Try Pu-Yi As Collaborator Tokyo, Aug. 21 (U,B Henry Pu-Yi, onetime puppet emperor of Manchukuo, will be tried be fore a special co.urt, presuma bly for collaborating with Ja pan, it was learned today. Disclosure that the slender "boy emperor" will face trial was made by Joseph B. Ken nan, chief prosecutor in the war crimes trials of 27 leading Japanese suspects where Pu-Yi is appearing as a prosecution witness. In his four days of testimony, Pu-Yi has steadfastly Insisted that he was forced to become emperor of Manchukuo because of threats made against his life. He has repeatedly empha sized that he was opposed to the Japanese but dared not show it. His attempts to excuse him self for not taking a stronger stand against his Nipponese ov erlords drew from Court Presi dent William Webb a remark that the witness was not on trial. Kcnnan leaped to his feet and said: "When the lime comes for Pu-Yi to go on trial before a special tribunal the world will learn whether duress alone is enough evidence to condemn a man." In his cross-examination tes timony, Pu-Yi emphatically de nied that he sought Japanese aid in becoming emperor of Manchukuo and labelled as a forgery a letter he purportedly wrote to a trial defendant ask ing for assistance. Dock Workers Strike Ties-up NY Piers New York. Aug. 21 lTi The walkout of about 3,500 long shoremen which started at a few piers Monday afternoon and spread to 26 yesterday, af fected Brooklyn piers today for the first time, the war ship ping administration reported. All Manhattan and New Jer sey piers previously affected by the walkout remained tied up today. The WSA tabulation placed the total number of piers affected at 28, the number of longshoremen idle at 3,500 and the number of vessels affected at 45. The Weather (Released by the Untied Stales Weather Bureau) Forecast for Salem and vicin ity: Clear tonight and Thursday, silghtly warmer tomorrow. Low est temperature tonight 52. Weather will continue favorable for spraying and dusting. Max. yesterday 89. Mtn. today 52. Mean temperature yesterday 71, which was 5 above normal. To tal 24-hour precipitation to 11:30 a m. today, 0.00. Total precipi tation for the month, trace, which Is .21 inches below nor mal. Willamette river height, -3.8 ft.
