y Acheson Says
U.S. Not lo Send
Troops fo Greece
America .Not Asked to"
Supply Army Secret
Documents Released
Washington, March 24 W)
Undersecretary of State Ache
son said today the United States
does not plan to send troops to
Greece and Turkey to shield
Ihost countries against the
spread of communism.
He told the senate foreign
relations committee that this
country had not been asked to
supply troops. "We do not fore
see any need to do so. And we
do not intend to do so."
Acheson testified at the open-
ing of the committee's hearings
on President Truman's proposal
for $400,000,000 in aid to the
two countries.
As he told the house foreign
affairs committee previously,
. Acheson said that he did not
think such assistance would
lead to war.
Clayton Testifies
Undersecretary of State Will
Clayton, meanwhile, gave the
house committee a breakdown
1 on the $400,000,000 program
He said all except $150,000,000
would be used for military pur
poses. The two department officials
went before the committees fol
lowing release of hitherto-secret
documents accusing Russia of
attempting to extend commun
ist control over Greece and
Turkey.
These documents told of a
Russian "war of nerves" against
Turkey and of a "master plan"
to bring Greece under com
munist domination. Poland was
labelled a Soviet "satellite."
Release of the documents,
previously laid before the house
foreign affairs committee for
the private "background" infor
mation of members only, fur
nished this c'ountry with the first
detailed ' information of the
counter-Russia reasons behind
the administration's Greek-
Turkish aid program.
Stop Gap Loan
Chances developed that it
might be at least two weeks af
ter March 31 the administra
i tion's original goal for the mea
1 sure's passage before the legis
lation could clear both the house
and senate.
Hence a move got underway
to give President Truman stop
gap authority to borrow $100,-
000,000 from the reconstruc
tion finance corporation in anti
cipation of the bill's eventual
approval.
(Concluded on Page 11, Column 6)
German POW
Reparations
London, March 84 (U.PJ' The
Big Three reached a secret
agreement at Yalta to use Ger
man prisoner of war labor as
reparations, commons was told
today by Hector McNeil, minis
ter of state for foreign affairs.
McNeil said he was arranging
for the whole of the Yalta agree
ment and the entire Potsdam
agreement, including any secret
clauses, to be published as gov
ernment white papers.
Laborite Michael Foot asked
McNeil whether he could con
firm that a secret agreement en
tered into at Yalta by former
Prime Minister Winston Church
ill, the late President Roosevelt
and Premier Josef Stalin pro
vided for the use of German la
bor as reparations.
"I can only repeat that the
government is arranging for the
publication of the two agree
ments," McNeil replied. "It is
true that the Crimea conference
did deal with prisoner of war
f labor. '
Britain Refuses
To Release Cyprus
London, March 24 (JP) British
government sources said today
they were "surprised and disap
pointed" at a Washington pro
posal that Britain cede Cyprus
to Greece. ,
One official, who refused to be
identified, said: "It will be a re
lief to all of us in this country
when some people in the United
States overcome their tendency
to be so liberal with territory
that does not belong to them." '
Britain has refused previously
to change the island's status, say
ing it helped secure her imperial
lifelines.
A foreign spokesman told a
news conference:
"British policy in regard to
Cyprus ts plain. It has been stat
ed repeatedly."
Killed by Live Wire
Grants Pass, March 24 OF)
Henry Volkman, 65, was killed
Saturday as he tried to move
i the broken end of a high vol
tage wire from a pile of lum
ber. The wire had been broken
-in tree-topping operations.
(Capital AJoeraal
58th Year, No. 71
Marshall Asks
Cut in German
Occupation Army
Moscow, March 24 W) An
authoritative .source .disclosed
tonight that Secretary Marshall
had proposed that the council
of foreign ministers in effect
order a reduction of allied oc
cupation forces In Germany to
the minimum necessary to carry
out allied policies and protect
security.
The proposal was made in a
paper circulated among V. M.
M o 1 o t o v, Ernest Bevin and
Georges Bidault, the Russian,
British and French foreign min
isters, it was learned.
Under the proposal, the allied
control council for Germany
would be directed to report by
next June 1 what forces it con
sidered necessary for each of the
four zones on July 1 and give a
similar estimate for July 1, 1948.
One of 3 Papers
The paper on occupation for
ces was one of three passed
around by the American dele
gation to the other foreign min
isters. The other papers covered
proposals for German democra
tization and on compensation
for allied nations whose pro
perty had been removed from
Germany for reparations or war
booty.
In the occupation paper, Mar
shall asked the council of for
eign ministers which was in
recess today to declare that a
reduction of forces and occupa
tion costs is necessary to make
the German economy self-supporting
as soon as possible, and
to help expedite German pro
duction for export.
Government Proposals
The Soviet Union on the one
hand and the United States and
Britain on the other charted
maneuvers aimed at achieving
the kind of government under
peace-treaty provisions that
each side seemed to believe
would be most favorable to its
own political system.
Proposals of all four powers
on this, issue had been laid be
fore the council in varying de
tail Saturday night when it quit
work until tomorrow to give the
foreign ministers' deputies time
to summarize the results of de
liberations now two weeks old.
The deputies on Germany
were committed to hard work
boiling down a mass of political
and economic proposals to lists
of points on which there was
agreement and points on which
there was disagreement. Some
top U. S. authorities Said this
week should tell whether any
concrete accomplishment could
be expected from the Moscow
conference.
Austrian Treaty
The deputies on the Austrian
treaty, which had been expected
to give less trouble than the
German, were shown in a sum
marization by U. S. General
Mark W. Clark to have made
little progress. This summary
listed eight agreements and
seven disagreements on political
clauses, seven agreements and
11 disagreements on military
clauses and one agreement and
nine disagreements on economic
clauses.
Of the 27 disagreements 26
were on major points.
Dahlia Confession Hoax
Detroit. March 24 (U.B De
troit police said today they had
established definitely that Mel-
vin R. Bailey was in Detroit at
the time he claims to have mur
dered Elizabeth Short, the
Black Dahlia," in Los Angeles.
Cherry Festval to
By Service Clubs in July
History is repeating itself in Salem. The old Cherry Festival
of which only old-timers can say, "I was there," is being revived.
Serious consideration has been given the festival for several
weeks by a group of organiza
tions in Salem with the retail
trade bureau headed by Mai
Rudd taking the lead. Monday
morning representatives from
the Salem Chamber of Com
merce, the Salem Junior Cham
ber of Commerce, the Salem
Saddle club, the Cherrians and
the Salem Retail Trade bureau
took steps that will make it a
reality, setting the dates for the
event for July 17, 18 and 19.
The festival not held since
1915 will take more definite
form following a meeting of
several Salem organizations set
for the evening of March 31 at
the Chamber of Commerce.
Serving as temporary co-chairmen
until that date will be Wil
liam C. Dyer, King Bing of the
Cherrians, and Graham Shar
key, representing the Salem
Spddle club.
It is estimated that several
tyA"ago.'." Salem,
Flood Waters
Stop Subway
Trains in London
London, March 24 (P) Flood
waters seeped into the largest
London subway power station
today, halting service on 40 miles
of tracks and bringing chaotic
conditions to much of the world's
largest city.
As floods spread in still more
areas of northern England, wip
ing out crop prospects over many
acres, talk started in London
over the possibility of seeking
another American loan. The la
bor government maintained si
lence.
Outside London, York was the
major flood sufferer as the swol
len Ouse river virtually cut the
industrial city of 100,000 in
two.
Traffic Halted
Virtually everyone was late
to work in London. The dead
subways caused Londoners to
travel by strange and devious
routes. Service was stopped en
tirely on two main., subway
routes and slowed on the other
three. Seventy subway stations
were closed.
Long lines stood at stops for
buses, trolleys and taxis and be
fore telephone booths. Some
formed at the better hitch-hike
locations.
The transportation jam, the
worst in memory here, started
just before the morning rush
hour and lasted two hours.
Coming on top of the Feb
ruary industrial crisis which
slowed the nation's export drive,
the floods have made it unlikely
English and Welsh farmers can
make a dent in their country's
big overseas food bill.
Crop Prospects Wiped Out
The American loan negotiated
a year ago placed $3,750,000,000
to Britams credit. Latest re
ports showed about $900,000,000
of this had been used.
The British government esti
mates it will import 725,000,000
pounds ($2,900,000,000) worth
of food and agricultural supplies
this year much of it from the
United States, Canada and other
dollar areas. This in itself means
a big drain on the loan unless
exports to dollar areas and home
production can alleviate the situ
ation. .
Further dollar losses are In
prospect as a result of sterling
debt settlements scheduled this
summer.
The combination of events has
brought a surge of loan talk
but not from the government.
Russians Firm
On Reparations
Moscow, March 24 (U.R) Hus
sion insisted today that the Big
Four permit Yugoslavia to make
a $150,000,000 reparations claim
against Austria despite a secret
agreement among the Big Three
to extract no reparations from
that country."
The Soviet demand on behalf
of Yugoslavia was made at a
meeting of the deputies from
Austria at the opening of the
third week of the Moscow con
ference. The Soviets also refused to
abandon the possibility of mak
ing claims against Austria for an
estimated $90,000,000 in now de
funct occupation currency.
The Austrian reparations ques
tion was brought up by Gen.
Mark Clark. He asked for an
agreement on the reparations
clause in the Austrian treaty
which would affirm the Pots
dam agreement of the Big Three.
Be Revived
thousand dollars will be needed
to finance the festival and mer
chants will be asked to under
write the event the same as was
done for the Centennial celebra
tion in 1940, when instead of a
deficit there was a profit of
$2000. Also used in financing
the festival will be buttons that
will be sold and will cover the
admission price of all events to
be held during the three-day
festival.
Salem will be fully decorated
for the occasion and merchants
instead of displaying their usual
wares will be asked to arrange
exhibits of products grown or
manufactured in this area. In
the armory will be competitive
exhibits of products grown in
this area, and if possible arrange
ments will be made for the ex
hibiting of tractors and farm
machinery and automobiles.
(Concluded on Face 11, Column I)
Oregon, Monday, March
, is."1' s A f - - .
ftfAfatflr - n iir'llrinrTirT -"" ttAV-AtwlJ
I1 2
m w hi ezL
& fe aT
hi J u- ...
A New Bank Opens for Business Above is a view of the lobby of the magnificent $500,000
new home of the Salem branch of the First National Bank of Portland, which opened for busi
ness at 10 a.m. Monday at North Liberty and Chemeketa. Below, at left, Guy N. Hickok, man
ager of the bank, standing in the door of the vault room in the basement. Below at right, City
Treasurer Paul H, Hauser,' opens the first account in the new building, a deposit for the city of
Salem. The account is received by Edward P. Davee, vault teller. Crowds thronged the bank
during the day and the public reception continued after closing hours, with sandwiches and
coffee served at 4 o'clock.
Veterans Ask for Ban
On Communist Party
Washington, March 24 IIP)
committee today unanimously cited Leon Josephson of New York
for contempt. He has refused to testify to a subcommittee. Jos
ephson was described in testimony to the committee Friday as a
member of the Russian secret
forging ring in America. The
subcommittee, which held hear
ings in New York, sought to
question him about false pass
ports.
The contempt, citation will be
sent to the entire house. If it
approves, the citation then Willi
be turned over to a United States
district attorney to present to i
grand jury. Conviction of con
tempt of the house is punishable
by up to $1000 fine and a year
in jail,
Josephson said in an interview
in Dayton, Ohio, Saturday that
he once signed a passport as an
identifying witness for Gerhart
Eisler. The committee has call
ed Eisler the "supreme" commu
nist authority in the United
Stales.
But Josephson said the testi
mony regarding him before the
committee was an attempt to
'smear" him. He said it was
part of av "movement to create
communist scare in this coun
try."
The committee acted against
Josephson as it opened general
hearings on the question of legis
lative action against communists.
One proposal is to outlaw the
red party.
American Legion officials
were the first witnesses and
asked that congress ban the com
munist party as a danger to dem
ocratic America.
James F. Green of Omaha,
chairman of the Americanism
commission of veterans' organ
ization, called the party "the
willing instruments of a foreign
power bent upon the destruction
of American democratic govern
ment by violent uprising."
Saying there are at least 100,-
000 communists in the country,
exclusive of sympathizers and
fellow travelers, Green de-
Mere are cadre lor lu loreign
divisions already on American
soil. To them this country is but
a theater of operations, with the
Union of Soviet Socialist Repub
lics their mother. The allegiance
of communists in America is to
a country other than America.
24, 1947
The house un-American activities
police and a figure in a passport
Rent Control
To Carry On
Washington, March 24 (U.R)
Temporary Controls Director
Philip B. Fleming pledged every
effort today to keep the nation's
rent control machine going un
til congress finishes work on the
new model.
"I think I can carry on until
May 15 or maybe beyond," he
told a reporter. "Maybe even
until the first of June."
Fleming, whose office of torn
porary controls includes OPA,
said he would order all possible
economies to make OPA's i
maining $6,500,000 last until
June 30, when it must die.
Fleming is working under
presidential directive to continue
rent and sugar controls "on an
effective basis" despite a con
gressional mandate to close OTC
and all its branches by June
30.
President Truman, in approv
ing the death sentence Saturday,
said he was confident congress
planned to extend rent control
and sugar rationing. Rent pow
ers expire June 30; sugar con
trols on March 31 a week from
today.
A bill to extend sugar ration
ing to Oct. 31, and to vest it in
the department of agriculture
rather than OPA, has been pass
ed by the house. Senate repub
licans, who failed to agree on
the extension at a policy meet
ing Saturday, promised to try
again this week.
Drunken Drivers
Cost 82 Lives in '46
involved in automobile accidents
that cost 62 lives in Oregon last
year, Secretary of State Robert
s. Farrcll, Jr., said today.
Farrell said that four out of
five fatalities in which
drunken drivers were involved
were caused by excessive speed.
Price Five Cents
First National
In New Bank
Moving is quite a chore, as
most any householder who has
been compelled to transfer pos
sessions from one point to an
other will testify. But when a
bank decides to move its scene
of operations that undertaking
comes under the classification of
a major operation. That was
what Guy N. Hickok, manager of
the Salem branch of the First
National bank of Portland, and
his more than 50 employes learn
ed over the week-end. For dur
ing that time they carted hun
dreds of thousands of dollars,
valuable papers, heavy nests of
private locker boxes, pen points,
ledgers and the thousand and
one other items that arc neces
sary in the operation of a mod
ern banking business, from the
corner of State and Liberty, two
blocks north to Chemeketa and
Liberty. That the move from
the old banking house lo the new
modernistic half million dollar
structure was successful was ev
idenced Monday forenoon when
customers of the Institution were
waited upon with customary
promtpness and courtesy.
What the casual observer did
not learn, however, was the
amount of forethought and the
(Concluded on Page 11, Column 6)
County Court Protests Bill
For Moving Courthouse Site
County Judge Grant Murphy advised Monday that he will ex
press to Governor Earl Snell the disapproval of himself and mem
bers of the county court as lo Senate Bill No. 354 which has passed
both houses and is in the hands-
of the execulive for disposition,
the bill involving a method for
changing a courthouse site and
he states, as far as he knows,
Marion county is the only coun
ty in the state having a situ
ation such as the bill seems to
be aimed at. He says provisions
of the bill would put the tax
payers and voters on the defen
sive and also would tend to put
the county court under great
pressure from certain business
interests which would like to
see the courthouse site changed
and the present site converted
to commercial uses.
The bill in question which
emanated from the committee
on municipal affairs of the sen
ate and passed the senate March
10 and the house March 19, pro
vides that if the county court
deems it advisable to move the
Cornell Sees
Session Lasting
Into Next Week
Manv Important Bills
By James D. Olson
The 44th legislative session
will not end next Saturday in
the opinion of Marshall Cornett,
president of the senate, who to
day, on the 71st day of the 1947
session, declared "If we are to
close in an orderly fashion and
consider all the important leg
islation before us, I feel sure
that we must go into next week,
for at least two or three days."
President Cornett pointed out
that numerous bills, particularly
those in the "more important"
bracket will necessarily go into
conference to iron out differ
ences between the senate and
house.
"These conference sessions
will consume time," he said
"and in addition I feel certain
that' the members of this legis
lature will not be in favor of
rushing through bills so fast that
errors will be overlooked and
litigation will result after the
legislature has adjourned.
No Night Sessions
Unless the senate is confront
ed with a jam of bills that can
not be disposed of during regu
lar morning and afternoon ses
sion, President Cornett said he
did not believe that night ses
sions would be held, at least not
until the last two or three days
of the session.
"There is too much chance of
careless legislation when night
sessions are held" he said "and
I feel that we should endeavor
to avoid them if possible."
Of 930 bills introduced in
both houses up to Saturday, 352
have been approved by both
senate and house. The house
has passed 298 of its own bills
and 162 senate bills. The sen
ate has approved 251 of its own
bills and 190 house bills. Thirty-
three measures have been de
feated by the legislature and 33
withdrawn although in some
cases substitute bills have re
placed the withdrawn bills.
Welfare Tax Up Tuesday
The proposed bill providing a
mandatory county tax levy of
4V4 rqills for public welfare will
go before the main ways and
means committee Tuesday morn
ing. This bill, being drawn at
the direction of the sub-commit
tee on public welfare, was
agreed upon following days of
conferences which ended in
agreement on a $43,000,000 pub
lie welfare program in Oregon
for the next biennium.
The senate roads and high
ways committee will hold a pub
lic hearing at 7:30 p.m. Tuesday
on two house bills increasing
allocations of gasoline tax re
ccipts to cities and counties. Un
der the house approved bills the
allocation of gas tax funds to
counties is increased from 15.7
to 20 percent and cities allott
mcnt would be increased from
five to 12 'A percent.
Chairman Ralph Moore of the
house labor and industries com
mittee announced that he would
endeavor to hold a hearing on
the senate approved restrictive
labor bills late today. The bills
would ban secondary boycotts
and hot cargoes and provide for
secret elections in labor disputes
A hearing on the senate ap
proved community property bill
is scheduled at 7:30 tonight be
fore the joint house revision of
laws and judiciary committees.
Illegal fo Print
Sweepstakes Results
Washington, March 24 (U.R)
The post office department re
minded publishers today that it
is illegal to print sweepstakes re
suits in newspapers which are
mailed.
Post office regulations forbid
the mailing of announcement of
prizewinners in any lottery,
courthouse to another site the
court may make such a change
by giving notice of its inten
tion by certain publications for
a period of 30 days prior to a
public hearing. At this hearing
the bill provides, petitions may
be presented asking that the
question of changing the site
of the courthouse be submitted
to the vote of the electors of
the county. If such petitions
containing the signatures of at
least 10 percent of the voters
of the county are presented
then, the bill provides, shall
within 10 days thereafter make
an order submitting the ques
tion of the change of site to the
people at the next general elec
tion or the court may in its dis
cretion call a special election.
However, the joker in the bill
(Concluded on Page 11, Column T)
Timber Tax for
Reforestation
Wins First Test
Snell's Conservation and
Research Program Wins
Preliminary in Senate
By Paul W. Harvey, Jr.
Governor Earl Snell's forestry
conservation and research pro
gram, to be financed by a tax
of 10 cents a thousand on all
timber cut to raise $500,000 a
year, survived its first test today
in the state senate, which voted
14 to 13 to adopt the report of
a majority of the senate forestry
committee that the bill bs
passed
However, the sponsors of the
bill must find two more votes
by tomorrow in order to pass the
bill. The measure already has
been passed by the house.
Sen. William E. Walsh, Cool
Bay, was the opposition leader
today during the 1 V4 hours of de
bate on the measure, asserting
it is unfair to tax the timber in
dustry for the benefit of the
whole state.
Walsh said the timber opera
tors now are conducting vast re
forestation operations, but they
would stop them if the bill pass
ed. Walso also said the measure
is unconstitutional.
Sen. Geonge Winslow, Tilla
mook, leading the fight for the
bill, said the timber operators
should pay the tax because they
are largely responsible for the
denuding of the state's forest
lands. He said the tax would he
passed on to the consumer any
way, and read an attorney gen
eral's opinion that the bill is con
stitutional. Those Favoring Bill
Those favoring the bill were
Senators Bclton, Carson, Chase,
Chessman, Ellis, Gibson, Hilton,
Jones, Mahoney, McKay, Paul
Patterson, Thompson, Winslow
and Zurcher. Absent were
Engdahl, Stadelman and Wal
ker. The house-approved bill to
permit counties to set up zoning
and planning commissions won
unanimous approval of the sen
ate county affairs committee to
day, which accepted the house
bill without making any
changes.
The senate assessment and
taxation committee will begin
work Tuesday on the house bill
calling for a 3 percent sales tax
on , virtually all items except
food. Some members of the
committee want to tax food and
reduce the rate to 2 percent.
The house passed and sent to.,
the senate today a bill to elimi
nate chiseling in conditional
sales contracts by requiring in
terest rates be clearly set forth
in contracts. The bill is direct
ed at some unscrupulous used
car dealers.
Protests Camp
White Report
Charges that costs figures
contained in a committee report
in connection with the propos
ed state acquirement of Camp
White for use as a state institu
tion are padded and declaration
that Camp While is not a "white
elephant" arc contained in a
special report filed with th
senate today by Senator Lew
Wallace of Multnomah county.
The report was filed in sup
port of a resolution introduced
late last week directing the
board of control lo immediately
take steps to acquire the mili
tary hospital near Medford.
The report filed today states
that the board of control report
was made by state doctors, en
gineers, superintendents, farm
ers and highway department
architcts "who while competent
in their fields have no experi
ence in modern hospital con
struction." Sen. Wallace continues to
state that "the report was obvi
ously biased and political, em
phasizing all the desirable fac
tors and building up costs, leav
ing out of consideration all de
sirable factors and benefits to
patients."
His report said that figured
three ways, square foot, cubic
foot or per bed basis, Camp
While hospital's replacement
value is at least $7,500,000 not
counting equipment which
would probably run another
$1,000,000; in short Camp White
hospital represents a $7,500,000
lo $79,000,000 gift.
He concludes that the resolu
tion directing the board of con
trol to acquire the hospital
should be adopted.
The Weather
(Released by United States
Weather Bureau)
Forecast lor Salem and Vicin
ity: Partly cloudy tonight and
Tuesday with no rain. Slightly
warmer temperature Tuesday.
Conditions will be favorable for
dusting and spraying Tuesday.
Low tonight 40 to 45. Maximum
yesterday 52. Minimum today 36.
Mean temixrature yesterday 46.
which was 2 below normal. Total
24-hour precipitation to 11:30
a.m. today .14. Total precipita
tion for the month 4.07, which is
1.19 Inches above normal. Wil
lamette river height 4.3.