Capital journal. (Salem, Or.) 1919-1980, March 21, 1947, Page 1, Image 1

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    y Acheson Warns
Of Danger of
Red Regimes
Communist-Dominated
Governments Anyplace
Menaces U. S. Security
Washington, March 21 (IP)
Under Secretary of State Ache
son said today the existence of
"communist-dominated govern
ments" any place in the world
is "dangerous to the security of
the United States."
Acheson made that reply
when Rep. Judd (R-Minn),
asked whether a communist
dominated government of China
would be a danger to United
States security.
For the second straight day,
Acheson testified before the
house foreign affairs committee
on President Trumans request
for authority to use $400,000,
000 plus military advice and ma
terials to help Greece and Tur
key resist communist aggression.
.-, Unanimity no Coincidence
W A moment later, he comment-
' ed that "communist organiza
tions throughout the world ap
pear to act with a high degree
of discipline and unanimity
which is beyond the probability
of coincidence."
Judd had asked whether the
state department knew of any
"communist government" in the
world that is "not Soviet domi
nated."
At that point, Rep. Merrow
(R-NH), interjected that he fa
vored a "rhow down" with the
communists. He added:
Firm Stand Needed
"Mr. Stalin and his associates
won't stop their program of ag
gressive expansion until the
United States would be abandon
ing its world leadership by de
nying aid to Greece and Turkey
Acheson replied: "If the Unit
ed States will not accede to the
requests made on it, there will
be a strong tonviction through
out the world that a great deal
of our professions are merely
words."
At the outset of today's tes
timony, Acheson quickly settled
one issue which had developed
between him and the lawmak
ers.
Secret Documents
He said he would arrange to
make public later secret "back
ground" documents concerning
the situation in Greece and Tur
nkey.
(Concluded en Pare 17, Column 7)
Chiang Defends
Policy As Sound
Nanking, March 21 (IP) A
high Kuomintang (government
party) official said today that
Chiang Kai-Shek, - answering
charges that China's policy to
ward Russia was "weak-kneed,"
told the Kuomintang executive
committee that it was "desirable
to maintain friendly relations
with' other countries at all
times."
The official gave the Associ
ated Press this summary of the
generalissimo's 75-minute ad
dress: In reply to charges by right
ist Kuomintang members that
Foreign Minister Wang Shih
Chieh had adopted "a weak
kneed, impotent policy toward
Russia," Chiang said the foreign
policy China was pursuing to
ward the Soviet Union was "per-
fectly correct."
Ciang reviewed the Kuomin
tang government's work in the
diplomatic, economic, military
and political fields, pointing out
its merits and its failings.
China's economy, the general
issimo said, was no longer in
danger of collapse. He was look
ing forward confidently, he
said, to American financial aid.
He assured the 300 party mem
bers that an American loan
would be used for national re
. construction, and not in the war
against communists.
OK Bill fo Remove
Coast Lake Weeds
The joint legislative ways and
means committee voted today
for a bill authorizing the state
game commission to take steps
to remove weeds from Tahken
itch and Siltcoos lakes on the
Oregon coast. The value of the
lakes is being destroyed by the
weed growth.
The committee eliminated the
$25,000 appropriation, leaving
it' up to the game commission
to spend its money.
The Weather
(Released by United States
Weather Bureau)
Forecast for Salem and Vicin
ity: Cloudy with occasional light
rains tonight and Saturday.
Lowest temperature tonight 40
to 45 degrees. Rain will not be
heavy enough to make dusting
impossible but will wash some of
it off. Maximum yesterday 97.
Minimum today 43. Mean tem
perature yesterday 48 which was
1 above normal. Total 24-hour
precipitation to 11:30 a.m. today
0. Total precipitation for the
month 3.63 which is 1.12 inches
above normal. Willamette river
height 2.1.
Capital 4 Journal
58th Year, No. 69
Marshall Plans
For Federalized
German Nation
Moscow, March 21 UP) U. S.
Secretary Marshall called on the
council of foreign ministers to
day to set plans for the creation
of a german government in mo
tion at once and both he and
Britain's Ernest Bevin presented
programs for the organization of
a federalized German nation.
The council, in a brief session,
agreed to invite representatives
of the Austrian government here
immediately for discussion of
the Austrian peace treaty.
V. M. Molotov, Soviet foreign
minister, said he already had as
sured Foreign Minister Karl
Gruber, of Austria, that visas
would be issued for the Aus
trians assigned to come to Mos
cow.
To Break Impasse
The action on Austria came
after Marshall had urged the
council to break the Austrian
treaty impasse on what consti
tutes German assets in that coun
try and had expressed hope that
the treaty would be completed
in the Moscow meeting.
He said that it was for this
purpose completing the treaty
that the Austrian government
representatives should be called
into consultation.
Russian Plans Differ
How far the British and Amer
ican ideas will go in agreeing
with Soviet and French ideas for
Germany was not at once clear.
Molotov and French Foreign
Minister Georges Bidault will
introduce their plans tomorrow.
The Russians have been talking
about a tightly centralized Ger
man government .
Marshall laid down a three
point plan of procedure for set
ting up a German government.
First, he said, there should be
"establishment of a provisional
German government composed
of the heads of the governments
of the, now existing states and
laenders, including Berlin, and
clothed with necessary powers
to create and operate central ad
ministrative agencies."
Constitution Proposed
To this end. he said, the laen-
der or state governments should
be completed "throughout Ger
many at an early date."
Second, Marshall called for "a
drafting and acceptance of a con
stitution which shall be German
in origin and which shall be con
sistent with Democratic princi
ples and the decentralization of
government authority." All pow
ers not assigned the central gov
ernment would remain in the
state governments.
Third, Marshall said, there
should be the assumption of the
governmental authority by the
central government created by
the constitution and by the state
authorities recognized by the
constitution.
Reparations
Britain Received
Moscow, March 21 UP) For
eign Secretary Ernest Bevin said
in the council of foreign minis
ters tonight that the United
Kingdom had received repara
tions of more than 22,990,000
pounds ($91,960,000) from Ger
many since the end of the war.
These reparations, according
to Bevin, were divided as fol
lows:
1. From industrial capital
equipment 4,400,000 richmarks
at the 1938 (40-cent) value.
2. From shipping 350,000 tons
of vessels valued at 6,350,000
pounds ($25,400,000).
3. From German external as
sets seized in the United King
dom territory under the Janu
ary, 1946, agreement at Paris,
from 15,000,000 pounds to 20,
000,000 ($60,000,000 to $80.-
000,000).
Senate Group Votes to Continue
Rent Controls Without Increase
Wri.ington, March 21 (IP) A senate banking subcommittee
today unanimously approved legislation continuing rent controls
through February 29, 1948, without a general increase. Chair
man Buck (R., Del.) said the
subcommittee will decide next i
on how the rent program will
be administered after OPA goes
out of business next June 30.
Raymond M. Foley, national
housing administrator, recom
mended to the committee that
rent ceilings be retained on new
dwellings as well as on old
houses.
Other witnesses have suggest
ed elimination of ceilings on new
construction will stimulate con
struction of rental properties.
ihe subcommittee discarded
provisions of a previous bill that
would have wiped OPA out of
the rent picture and handed the
control program to the courts.
The new measure authorizes
SSfJfJSSSS Salem,
Refuse Pay for
Top Conciliation
Service Chiefs
Washington, March 21 (IP)
The house appropriations com
mittee voted today to knock the
financial props from under the
United States conciliation serv
ice by refusing pay for Direc
tor Edgar L. Warren and a num
ber of top aides.
Climaxing a long feud be
tween Warren and Rep. Keefe
(R., Wis.), the action highlighted
a $1,685,586,780 bill to finance
the labor department and the
federal security agency for the
year starting July 1.
The measure will be debated
in the house next week.
Keefe is chairman of the sub
committee which drafted the
bill. He has accused Warren of
having affiliated in the past with
"communist-inspired fronts" and
of having advocated the right of
government workers to strike.
The conciliation chief denied
knowledge of any communist
sponsorship of the groups when
he joined them and told the
committee he has changed his
mind about the right of federal
workers to strike.
In addition to' its blow to the
conciliation service, which pro
vides mediators in labor disputes,
the committee also cut by near
ly 50 percent the money Presi
dent Truman asked for the na
tional labor relations board.
NLRB Funds Sliced
In granting the NLRB only
$4,033,700 of the $7,984,000 re
quested, the committee said it
was split over a suggestion that
the board be abolished because
it "has made no real contribu
tion to industrial peace."
The NLRB administers the
Wagner collective bargaining
80 While carrying $366,170,277
more than comparable appropri
ations for the current year, the
total of today's bill is $77,825,-
520 or less than five percent
below Mr. Truman's budget es
timates. (Concluded on Page 17, Column 5)
Income Tax Cut
Bill Approved
Washington, March 21 (IP)
The house ways and means com
mittee today approved, 16 to 9,
the republican-backed bill to
slash income taxes by 30 per
cent for the small taxpayers and
by 20 percent for most others.
The legislation thus was head
ed for the house floor for a
showdown next Thursday. The
committee vote virtually follow
ed party lines.
Before approving the measure,
the committee rejected, 15 to 10,
a motion by Rep. Doughton (D
N.C.) to postpone tax consider
ations "until we know what our
foreign and other commitments
will be" in connection with re
cent world developments.
The tax cut, under the legisla
tion authored by ways and means
Chairman Knutson (R Minn.),
would be effective as of last Jan
uary 1.
Withholding from wages and
salaries under the pay-as-you-go
system would be slashed to con
form with the tax reduction ef
fective June 1. Taxpayers would
get rebates for any overpay
ments between January and
June under the new rates.
The bill provides an -overall
$3,840,000,000 slash from the
present individual tax collec
tions of about $16,000,000,000
annually.
Knutson predicted the house
will approve the legislation by
a comfortable margin, although
democrats on the committee or
ganized their ranks for a last
ditch battle.
state governors to set un advis-
ory rent committees in each of
the 600-odd areas under rent
control.
It also provides for removal of
rent ceilings on new houses,
dwellings renting for $225 or
more a month, accommodations
which were not rented between
Feb. 1, 1946, and Jan. 31, 1947,
hotels and motor courts.
The local advisory committees
would have authority to recom
mend: 1. Removal of rent ceilings on
an area basis.
2. Increases on an area basis.
3. Special adjustments in
"hardship" cases.
Oregon, Friday, March
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Talmadge Gets the Bad News
Georgia, stands in his office at the capitol in Atlanta a few minutes after hearing the state su
preme court ruling that Lt. Gov. M. E. Thompson is the governor. The men around him were not
identified. The court held that Talmadge's election by the state legislature was unconstitutional
and that Thompson, elected lieutenant governor became governor on the death of Talmadge's
father, Eugene Talmadge, before he could take office. (AP Wirephoto)
Broadway Extension to
Ljnk with Planned Bridge
county engineer iledda owart and uity engineer Harold Davis
held a preliminary conference Friday as to proposed surveys to
ascertain the estimated cost of an extension of Broadway to North
River road, a co-operative county and city project and County
Engineer Swart revealed that this proposed street extension links
Border Patrols
Economy Victims
Washington, March 21 (IP)
Customs bureau officials said
today that anti-smuggling pa
trols along the entire Canadian
border may have to be discon
tinued after this month because
of congressional budget cutting.
Those along the Mexican bor
der and the water front patrols
in major United States ports
may have to be curtailed great
ly also, they told inquirers.
Customs collections at entry
ports would not be affected.
The Canadian border patrol
is directed fror.i offices in Buf
falo, N. Y northeast section
headquarters and Havre, Mont.,
northwest section headquarters.
These offices, they said, might
have to be discontinued.
Many of those now in patrol
activities would be assigned to
other duties, such as inspection
in ports of entry, to replace
others with lesser claims under
civil service and seniority proce
dure if the reductions in force
prove finally necessary.
Gale Warnings
Fly
in Britain
London, March 21 (IP) Gale
warnings went up throughout
Britain today and "worsening
conditions" were reported in
the nation's two most critical
flood areas the Fenland region
in the east and the northern
mining town of Bentley.
Rivers were reported reced
ing in virtually all dther areas,
however, after the. nation's
worst flood disaster in living
memory.
British soldiers and volun
teers stacked more sandbags on
a 12-mile long, seven-foot high
dyke holding back the swollen
Wissey river in the Fenlands,
where entire communities and
110 square miles of rich farm
land were already under water.
Trucks piled high with sand
were dashing to the danger spots
along roads dotted with fleeing
flood refugees. RAF plans rang
ed over the region reporting the
spread of ever-increasing waters.
Two army amphibians sped
the work of rescuing hundreds
of families marooned in Bent
Icy, ringed by chrurning waters
and inundated up to a depth of
six feet.
Spring Officially
Arrives in Nation
Chicago, March 21 (IP)
Spring arrived officially today
and the nation had a fresh, warm
welcome for the first season of
the year.
Generally fair weather pre
vailed over virtually the entire
country, the U, S. weather bu
reau reported. However, clou
dy weather and light snow cov
ered an area comprising Wis
consin and Illinois eastward into
Ohio. Temperatures generally
were moderate and near or
slightly below the seasonal nor
mal. But the departing winter will
be remembered in many sections
of the country as generally disagreeable.
21, 1947
in .,..nVi - vh
Herman Talmadge (left), claimant to the governorship of
squarely in with the construc
tion of a new bridge across the
Willamette river at Division
street preliminary sketches of
which have already been drawn
and published.
The county engineer said that
the plan in connection with the
Division street bridge calls for
carrying an overhead to High
street where the main traffic will
go onto and off of the bridge.
But, what has not hitherto been
revealed in the plans for the
bridge, is the fact it also calls
for side ramps on each side of
the bridge to take on or let off
traffic at Commercial and Lib
erty streets, as well as caring for
the main flow of traffic at High
street. High and Liberty streets
converge north of the proposed
bridge to become Broadway.
The county engineer said that
the Broadway extension to the
north river road will not only
take care of much of the traf
fic now coming down Cherry
avenue to Highland avenue and
off of Front street, but will also
care for considerable traffic now
coming down Cherry avenue
turning over to tho Fairgrounds
road and mingling with the flow
of traffic there which comes off
from the Pacific highway,
With the plan for having
ramps running from the pro
posed new bridge onto Commer
cial and Liberty streets the traf
fic coming down Broadway will
split up at the intersection of
Liberty and High streets off
from Broadway and the whole
scheme is designed to break up
the traffic flow and cut down
congestion on all of the streets.
The Broadway extension, said
the county engineer, will hit the
north river road about a quar
ter of a mile past the old county
poor farm site, that is, according
to a preliminary glimpse, but
this is to be worked out by re
connaissance surveys which the
county and city engineers are
now planning.
"This extension is of great im
portance," commented the coun
ty engineer, "and something that
seems certainly in the cards if
traffic is to be taken care of in
any way near the manner it
should be."
$3000 Voted Widow
Of Slain Policeman
A proposed $3,000 payment
to the widow of State Police
Sgt. Ted Chambers, who was
killed two years ago by bandits
in an Ontario school house, won
the approval today of the joint
legislative ways and means com
mittee. Mrs. Chambers has been get
ting $152 a month from the
state industrial accident com
mission, but this will be cut to
$40 this month because her old
est son is now 18 years old. Her
younger son is blind, and the
$3,000 is to be used to educate
him.
Request for the money came
from friends of Mrs. Chambers,
who made no request herself.
Airlines Increase Fares
Washington, March 21 (IP)
The civilian aeronautics board
today approved an agreement
among 16 airlines for a 10 per
cent increase in passenger fares.
This raises the average rate
from about 4.6 cents a mile to
slightly more than five cents a
mile.
Price Five Cents
-
Steel Shipments
To Russia Cut
Berlin, March 21 UP) A joint
British-American announcement
said today that British and
American authorities had sharp
ly reduced shipments of German
iron and steel to the Soviet zone
and were considering a total
embargo because the Russian
zone has failed to fulfill terms
of a trade agreement.
The joint statement said the
Soviet zone was lagging far be
hind its commitments under the
agreement with the combined
American-British zone to de
liver foodstuffs and various
other materials in exchange for
steel and iron.
On the other hand, the slate
mcnt said, deliveries of iron
and steel up to the end of Feb-
rurary had fulfilled 95 percent
of the British-American com
mitment. "This failure (of the Rus
sians) has placed the United
Statcjs-British zone in an ex
tremely difficult position," the
statement asserted.
UAW Demands
Wage Increase
Louisville, Ky., March 21 (U.R)
The United Automobile Work
ers union (CIO) today asked
General Motors Corp, for gen
eral wage increases of 23 and
one-half cents per hour appli
cable to all wage classifications,
vacation pay and a guaranteed
40-hour work week.
The wage demands were pre
sented to Vice President H. W.
Anderson of General Motors by
UAW president Walter P. Reu
thcr. An estimated 225,000 GMC
employes in more than 100
plants across the country will
be affected by any wage in
creases, UAW said.
He said the present general
wage scale was $1.33 per hour.
UAW also asked that an
"equalization fund" be set up,
"to adjust wage rates based on
the principal of equal pay for
equal work."
UAW also asked a broad so
cial security program embrac
ing employer-finance group in
surance coverage, insurance
coverage to include death and
survivors' benefits; disability
benefits in the event of disabling
sickness, injury or disease, and
hospital, surgical, medical and
maternity benefits.
Burglars Smash
Dallas Store Escaping With 1521
Dallas, March 21 Burglars,
a pane of glass from a skylight
elevator, Thursday night smashed the safe at Cnders Depart
ment store here and escapcdt
with $1,521.21.
The robbery, which appeared
to be an all-night job, was dis
covered this morning about 8
o'clock. Crowbars ''from the
hardware department had been
used in prying off the safe's
combination lock and the floor
on the balcony, where the safe
was located, was littered with
concrete of the fire wall in the
safe, torn record books and small
change. The robbers left by the
rear door of the dry goods de
partment. The money, according to C. L.
Crider, owner of the store, in
cluded most of Thursday's re
ceipts from the grocery, dry
goods and hardware departments
and in the haul were many
checks received after banking
had been done that day. Indi
Yachl Victims
Held Both Slain
Before Blast
nta Ana
.O0- Grand
Calif., March 21
jury indictments
Beulah
verell, 17-year-old co
ed, and her sweetheart for the
time bomb murder of her par
ents, Sheriff James Musick an
nounced today.
Plans for procedure against
the heiress to the $600,000
estate of Mr. and Mrs. Walter
Overell, who died Sunday
the explosion of their motor
cruiser Mary E,, at Newport
Harbor, were revealed at Mu
stek's press conference.
Definitely Planned
The plan was to be presented
to attorneys for the young
couple, who had been living at
the Overall's Moorish mansion
in Flintridge since the tragedy.
If they rejected it, complaints
charging murder would be is
sued immediately, Musick said.
Otherwise, the case will be pre
sented to the grand jury, prob
ably next week.
'We are convinced thai these
people were bludgeoned to
death before the explosion. We
have evidence that they were
dead prior to the blast."
Hit by Hammer
Miss Overell, who has shown
only concern for her be-spec-tacled
fiancee, almost certainly
did not strike her parents, Mu
sick said, but will be accused
as an accessory.
The officers did not disclose
the murder weapon although at
yesterday's autopsy it was dem
onstrated that a ball-peen ham
mer could have caused skull
fractures on the victims.
In answer to a question as to
whether Miss Overall's maternal
uncle, Emanuel Jungquist, had
inaugurated the inquiry, Musick
said it was well under way when
Jungquist told him "it doesn't
look right to me."
Russia Refuses
Cooperation
Lake Success, N. Y., March 21
(IP) One of the greatest obsta
cles faced by the United Nations
today in the field of long-range
economic planning is the reluc
lance oi soviet Russia to par
ticipate in the specialized agen
cies designed to coordinate and
improve world economy.
Some delegates to the econom
ic and social council state frank
ly in private conversation that
this eventually may be as im
portant to the future of the UN
as President Trumans' request to
congress for $400,000,000 direct
aid to Greece and Turkey.
They point out that Russia's
position has attracted very lit
tie notice, since it has developed
over a long period of time, but
that her reluctance to take part
fully in world economic activi
ties is seriously handicapping
many organizations.
On the other hand, it was said.
the United States is playing an
important role in all of these
organizations despite fears ex
pressed in some quarters that
this country is veering toward
economic nationalism.
Russia has refused to join such
key organizations as the interna
tional bank for reconstruction
and development, the interna
tional monetary fund, the food
and agricultural organization
and the international civil avia
tion organization.
Malaya's Rubber
Exports Increasing
Singapore, March 21 (IP)
Malaya's rubber exports in Jan
uary were 67,504, tons of which
17,751 tons went to the United
Stales and 19,640 tons to the
United Kingdom.
January production in the Ma
layan Union was 52,570 tons, the
third successive monthly total
above 50,000. The postwar high
was set last November with 54,-
175 tons, the registrars of statis
tics said.
Safe at Crider's
who gained entrance by removing
after climbing up on an outside
cating that the job might have
been the work of amateurs was
the fact that a drawer had been
pried off from a large cash regis
ter in the hardware department,
when the machine might have
been opened in the regular man
nor by merely plugging in the
electric cord.
The time of the robbery has
not been determined but City
Police Officer J i m Davidson
stated that he inspected the back
door of the building near where
the safe is located Friday at 3:10
a.m. and everything appeared
to be in order. Polk County
Deputy Sheriff Tonv Neufcldt
and Police Chief Paul Kitzmillor
of Dallas checked for finger
prints and other clues Friday
morning but few appeared to be
available.
House Asked to
Ad on Tabled
Revenue Bills
Slot Machines and
Cigaret Levies Needed
To Prevent Deficit
By Paul W. Harvey, Jr.
The j int legislative ways and
means committee, which must
decide quickly whether to make
a drastic cut in all appropria
tions or whether to have a de
ficit of more than Sb,uuu,UUU
for the next biennium, voted 8
to 5 today to ask the house tax
committee to bring in the bill
to levy a 30 percent tax on slot
machines, pinball games and
punchboards.
The tax committee has tabled
the bill, which would bring in
about $4,000,000.
The ways and means commit
tee took the action after Rep.
Robert C. Gile, Roseburg,
chairman of the house tax com
mittee, told the ways and
means group that his commit
tee has finished its work. The
committee's program includes
the cigaret tax of 2 cents a pack
age, which would bring in $4,-
000,000.
Sales Tax No Aid
The 3 percent sales tax bill,
which was passed 38 to 22 yes
terday by the house and sent
to the senate, would not help
the deficit, since it must go to
the people.
C. C. Chapman, chairman ot
the ways and means sub-com
mittee on finance, suggested to
the committee that one way out
would be to have, the deficit.
and authorize the state tax com
mission, on July 1, 1948, to call
a special election to levy a prop
erty tax to make up whatever
deficit exists at that time. The
property tax then probably
would be offset by income taxes.
Relief Brings Lien
The committee also voted
today to n.ake relief payments
a lien against the estates of per
sons receiving the payments.
thus restoring a provision ot
the law that was eliminated in
1941.
The committee also is faced
with having to make a 20 per
cent cut in old age assistance.
The committee voted to kill
bills to permit counties and
cities to operate boys' cam pi
with slate aid, conduct aviation
education in the schools, and to
acquire 1000 acres for the site
of a new penitentiary near Sa
lem.
(Concluded on Pago 17, Column S)
Board Rejects
White Hospital
The stale board of control
advised the legislature today
that the hospital at Camp White
could not be used as a state
home for feeble-minded per
sons, but that it might be used
for a home for senile persons
from the state hospitals and for
untrainable inmates from the
Fairview home for feeble-minded
persons.
The board took its action to
day after receiving a report
from a committee of experts
which it sent to Camp White.
"It is the judgement of this
board that the same amount of
money expended at existing in
stitutions will provide better
and more efficient care and hos
pitalization," the board said.
The board said it would cost
$1,300,000 for alterations and
additions which would be nec
essary at Camp White, and that
$300,000 would be needed to
move Fairview home to Camp
White.
It also would cost, the board
estimated, $5,000,000 additional
for the next 10 years to operate
it as a home for feeble-minded
persons.
Commies Plan to
Cut Greece in Two
New York, March 21 (IP) The
Wew York Times said today that
"an authentic report received
in Washington stated that com
munist bands in Greece had a
strength of 13,000 and sought to
"cut Greece in half."
The source of the report was
not given.
The Times' story, written from
Washington by James Reston,
said tho immediate military ob
jective of the armed bands waj
to establish a corridor from the
Albanian border cast to the
Mount Olympus area on the Ae
gean sea. In such an event,
Greek Macedonia would be
sandwiched between the corridor
and Aegean to the south, with
Yugoslavia and Bulgaria to the
north and Albania on the
west.
Police Prefect Ousted
Paris, March 21 W.PJ Char
les Luizct, Paris prefect of po
lice, has been relieved of hii
job for failure to purge the po
lice force properly after the li
beration, the minister of in
terior announced today.
A