Senate Passes Ban on Reds As State Employes Committee Approves Budgets for State Institutions Capital IT A -d More Shifts JOUrflSl!., Announced in Atlantic Pact to Pledge Nations' United Defense -T tfSf cnSoviel Cabinet 61st Year, No. 58 Entered m Mcood elua matter t Sftlem Oregoi Salem, Oregon, Wednesday, March 9, 1949 By PAUL W. HARVEY, JR. A bill to prevent communists from working for the state of Oregon won unanimous senate approval today and went to the house. The measure, by Sen. Jack Bain, Portland democrat, pre vents the state from employing any person who "directly or in directly carries on, advocates, teaches, justifies, aids or abets a program of sabotage, force and violence, sedition or treason against the government of the United States or of the state of Oregon." The bill provides the right of appeal to the state civil lervice Commission for any person dis 'jissed lyider the law. iv ine nouse sem to ine senate ' p a bill to give labor one repre tjf jentative on the state civil serv ice commission. The joint ways and means committee approved a bill to make the state liquor commis sion buy all of its supplies ex cept liquor through the state purchasing agent. This bill is the result of the dispute between former Gov ernor John Hall and Liquor Commissioner J. O. Freck over supplies which the commission bought from Freck's stationery store. Hall fired Freck because of it. The ways and means commit tee approved the first of its big budgets, these being for state in stitutions. The institutions got what they asked for except for new buildings. State Has to Vote on Budgets The legislature might let the people vote on whether to con struct the new buildings for state institutions and higher ed ucation, taking the money out of Income tax surpluses. Amounts approved today for the institutions for the two years beginning next July 1 In clude: State hospital, $4,827, 378; eastern Oregon state hos pital, $2,812,279; Fairview home for feeble minded per sons, $2,685,374; State Deaf school, $644,526. The ways and means commit tee said it would investigate whether to keep on giving the Pacific International Livestock Exposition in Portland the $35, Y 000 a year share of state dog facing receipts. Some members want to stop the grant on grounds the exposition is a pri vate corporation paying divi dends to its stockholders. A subcommittee recommend ed that the exposition be made to repay a state gift of $100, 000 made in 1921 to enable the exposition to biuld a new build ing. Age Pension Groups Protest Leaders of old age pension groups made three demands at a public hearing last night, and they said some harsh words about the way the public welfare commission administers pen sions. They asked these changes in the pension bill now before the legislature: 1. Have an old age pension administrator who would be In dependent of the public welfare commission. 2. Let every pensioner earn up to $25 a month without hav ing to report it. This would be In addition to the bill's granting every person over 65 years old at least $50 a month, including other income. ' 3. Put in a provision that the state can't take over estates of deceased pensioners. The ways and means committee has intro duced a bill to give the state the estates of such pensioners as a means of letting the state get some of the pension money back. The theory behind this claims bill is that children would more readily take care of their par- ents if the children faced the prospect of losing their parents' state. About 300 oldsters attended the hearing in the house cham ber before the house social wel fare committee. State Income Tax Experts Available A state income tax agent will be in various valley cities on specified dates for the conven ience of taxpayers, it was an nounced today. The schedule in cludes: Silverton, City hall, March 14 and 15. 9 a.m. to 4 p.m. Newberg, Chamber of Com merce, March 16 to 18 inclusive. 9 to 4. McMinnville, courthouse. March 21 to 23 inclusive. 9 to 4 Dallas, courthouse. March 24 to 25, inclusive, 9 to 4. j State Welfare Requests Exceed County Budgets By JAMES D. OLSON Administrative budgets for county welfare commissions submitted by the slate welfare commission in support of its re quest for $61,584,033 for the 1949-50 biennium are higher in many cases than the budgets submitted by the county boards. Ihis was revealed when a ma jority of the county judges of the state appeared before a sub committee of the ways and means committee considering the huge welfare budget. "It looks like the state wel fare department took figures out of the air to support its in creased request," said Rep. Wil liam B. Morse, chairman of the sub-committee. Biennium Budget In 1947 the legislature bud geted $46,101,347.77 to the state welfare commission for the 1947- 49 biennium. A letter dated August 27, 1948, was sent by the state wel fare commission to all county welfare boards requesting sub mission of county welfare bud gets for the 1949-50 biennium. It was on these budgets that the present state welfare budget re quest was predicated. How ever, the state welfare commis sion sent another letter on Feb ruary 21, 1949, asking the coun ties to submit a yearly budget outline. County Judge L. V Beckley of Douglas county told the mem bers of the sub-committee that the administrative budget for the welfare board in his county submitted last September was $62,800 for the two year period. The administrative budget ap pearing In the state budget for this county was $69,323. (Concluded on Page 5, Column 6) Stalemate in Portland Strike Portland, March 9 VJ. Talks continued today between Ore gonlan and Journal management and striking AFL pressmen's representatives. Two days of joint sessions have brought no apparent change in the situation. Arden X. Pangborn, business manager of the Oregonian, said last night at the conclusion of the day's meeting that "we are still meeting and talking there is nothing else." Both papers were shut down by the pressmen's strike on Feb. 18. The next day, some 2,000 other mechanical and of fice workers were laid off with out pay. Members of the CIO Ameri can Newspaper Guild voted last night to hold a general meeting before returning to their jobs in the event the pressmen and management reach an agree ment. The editorial workers re opened their contract earlier this month, asking a wage revi sion. The guild also set up a wel fare committee for members. Sam Eubanks, New York City, build executive vice-president, pledged the resources .of the union's national defense fund for the welfare program. Washington Bars Doggies Olvmnin. Marh 0 JP) Tho ln. . . , . - - lslature yesterday slammed the door on a proposal to permit dog racing in Washington. Both hous es agreed to remove an amend ment authorizing greyhound rac ing from a bill which Walivp? racing of quarter horses. County Grants BPA for Dam Powee Line The county court Wednesday closed a deal with (he Bonneville Power administration giving it an easement deed to 2 'A acres f land in the North Santiam area allowing the Bonneville trans mission line from Lyons to the Detroit dam to cross the property S. J. Steele, agent for the administration who presenter, the deed, said the land already has theS trees and brush cut and work of cleaning that up is under way. This is but one small piece of right of way for this trans mission line which takes off from the main line at Albany goes through Lebanon and Ly ons and will carry power for Detroit dam construction work. Steele said after the dam is completed the same line will carry juice out from any power development which may be made at the dam. Under 'he agree ment with the county the own er may still use the rest of the land for any other purpose de sired which doesn't interfere with the power line and does not create a fire hazard. County Commissioner Rice Flood Waters Spill Over Lands In Four States (By lh Associated Preul Operation Cleanup today be came the top order of business in Beatrice, Neb., flood - hit southeast Nebraska river city. High water on the Big Blue riv er receded rapidly after driving some 125 families from their homes. Officials said it will be some lime before displaced persons can return to their flooded dwellings. Meanwhile, flood threats grew stronger on the Elkhorn river in northeast Nebraska and ice jams, coming and going, kept flood threats alive on the meandering Platte river. Winter Returns The weather picture itself was thrown into some confusion by a mild return of winter, marked by a seven inch snowfall at Sid ney in western Nebraska. County Agent Bill Bullock at Sidney said the new snow would help the winter wheat crop "im mensely " Rain and snow fell over four states where hundreds of home less are fighting flood waters. Heavy rain covered a wide belt from east Texas across Ar kansas to the Ohio valley. Surging waters from swollen streams spilled over thousands of acres of land in Nebraska, Iowa, Montana and Louisiana. But colder weather in many parts of the midwest checked some of the overflow. The Missouri river was gen erally below flood stage over its course through eight states from northern Montana to south ern Illinois. But many of the big river s tributaries were on a mild rampage. Montana Floods Minor floods were caused north of Sidney, Mont., after ice 30 to 40 inches deep blocked the Yellowstone river and sent water over its banks. Some residents expressed fear of widespread floods if the ice gorge backed up for 20 miles. Farmers and ranchers along the river were urged to leave their homes and remove their livestock.. (Concluded on Page 5. Column 5) Colorado Shale Producing Oil Los Angeles, March A VP) A gigantic "oil mine" operation in Colorado has multiplied Ameri ca's petroleum reserves several fold. This is disclosed by Boyd Mor ris of the U.S. bureau of mines division of synthetic fuels, who says an oil shale deposit near Rifle, Colo., eventually should become the largest mining oper ation in the world. It has a potental of about 350, 000,000,000 barrels of crude oil, he told the American Institute of Chemical Engineers conven tion yesterday. That amounts to about 10 times the volume of all the oil from wells drilled so far in this county. The project, already operat ing on a small scale consists of mining the shale rock and trans forming the near-solid petrol eum contents into crude oil Morris said giant caverns pro duced by the huge mining opera tions will be ideal to house un derground industries in the event of atomic warfare. Mor ris added the U.S. bureau of mines is in charge of the under taking, being sponsored by the armed services. Eventually, he said pipelines probably will be extended to the west coast. Easement to who was up the Detroit road Tuesday above the dam site says snags are lying all along where clearance has been made for the power line. He said also that repairs are being made on a 100-yard strip of the road near the forestry headquarters above the dam site where cars were reported get ting stuck. Rice said that there is still ice but thawing is undei way de spite a heavy snowstorm there Wednesday and he expects for a month while the freeze is going out of the road trouble will be had on the four-mile stretch from the dam site to Detroit. He said there is an even foot of snow on the level at Detroit. 1 jstiS) U.AWAMAS VAH CLARK I Fl L CUTSOP 'y V COWLIT7 "Vfc. COLUMBIA ' ' OOK L?wi - . Blood Program Dedicated Dedication for the local set up in the peace-time blood program for this area was con ducted Tuesday in Salem with the first visitation to Marion county of the blood mobile from the Portland regional blood center. From left: Justice George Rossman of the Oregon supreme court who gave the dedicatory talk as prepared by Milton L. Meyers, who was unable to attend; Charles H. Hug gins, chairman of the Marion county chapter of the Red Cross; and Col. Philip W. Allison, donor recruitment chairman. The three are standing before the blood mobile which will receive blood from 100 donors monthly In Marion county. Prosecution of Pyramid Clubs Studied by Stadter District Attorney E. O. Stadler Wednesday wrote John B. Mc Court, district attorney for Multnomah county, and also to the Portland city attorney, for any assistance they may give him to determine whether pramid clubs are legal. Pyramid clubs seem to be approaching a peak in Salem. "I have received dozens of in-3 quiries from persons wanting to know if the clubs are legal," the District attorney said "My reply has been that I think they are unlawful, but so far I have been unable to put my finger on a statute that is clear on the matter." Stadter said he was trying to get any possible help from the attorneys in Portland where the Pyramid club furore is even hotter than it is here. City Attorney Chris J. Kowilz also is being called on to advise interested citizens. - Numerous inquiries have come to him, he said. Both the district attorney and the city attorney are curious about the mathematical calcula tions that are involved in the clubs and how the records are kept. Many persons who haven't joined a club believe those who have will find shortly that the scheme isn't what it seems to be and that it will die out without legal interference. Just now, however hundreds of persons are being invited to join clubs. Several invitations reached girls in downtown of fices Wednesday. Many were trying to find out about, the le gality before accepting. All Time High Unemployment Aid The Oregon unemployment compensation commission today reported an all-time high of $1,- 169,662 was paid to the jobless 'last week, but that claims are beginning to fall off with the coming of good weather. Logging and lumbering ac counted for nearly half of the 64,000 claimants. Spring activ ity in upstate timber areas, how ever, was beginning to bring down the number of unemploy ed. . Twenty-three local offices re ported that many farm jobs, delayed by the worst winter in years, are opening up all over the state. Unemployment claims fell off noticeably in Salem, Eugene, Coos Bay, McMinnville, Albany and Klamath Falls. Bar Colored Oleo But Repeal Taxes Washnigton, March 9 CP) The house agriculture commit tee today voted in favor of re pealing all federal taxes on oleo margarine; but forbidding the sale of colored margarine in interstate commerce. The bill went through by a vote of 24 to 3 after the commit tee had defeated a proposal that would have permitted the sale of yellow margarine with out tax, but would have requir ed eating paces that served it to advertise the fact on their menus. The outcome was regarded as a victory for the dairy state in terests. The bill still has to be con sidered by the house and senate. 10 Best Dressed Men Picked New York, March 9 (U.B Sec retary of State Dean Acheson beat out President Truman to day as the government's best dressed man. The newly apponlted secre tary topped the annual list is sued by the Custom Tailors Guild of America, Ine Mr, Tru man was just behind him in the voting among men In gov ernment, Edward Balletta, pres ident of the Guild, said. Others selected in the 10-Cate gory listed were: Harold E. Stassen, president of the University of Pennsyl vania, in education. Clark Gable, in the movies. Lou Boudreau, of the Cleve land Indians, in sports. Ray Boolger, dancer, thea ter. Morey Amsterdam, night club and television entertainer, com edy. Elliot Lawrence, orchestra leader, music. Charles A. Munn, Sr., society. Richard Kollmar, who eats breakfast in public, radio. Lawrence C. Gumbinner, ad vertising agency head, business. Bill for Inspection Of School Buses The senate passed and sent to the house today a measure re quiring that all school buses be inspected by the secretary of state. The board of education would provide teaching courses for the school bus drivers. A companion bill was passed by the senate earlier this week It would require motorists to stop when the school bu:es are loading or unloading children. New Fire Quarters Planned in Portland Portland March 8 fi A new downtown central fire depart ment headquarters planned for Front avenue has been outlined by City Commissioner Kenneth L. Cooper. He said the $750,000 three story structure would occupy one city block. Three present companies would be merged. It won't be ready for use however, until July 1, 1950. THE WEATHER (Released by United Slates Weather Bureau) Forecast for Salem and Vicin ity: Mostly cloudy with occa sional rain tonight. Partly cloudy Thursday. Little change In tem perature. Lowest temperature expected tonight, 34 degrees; highest Thursday, 54 Maximum yesterday 49. Minimum today 34. Mean temperature yesterday 44 which was 1 below normal. Total 24-hour precipitation to 11:30 a.m. today .03 of an Inch. Total precipitation for the month .29 of an inch which w .81 of an Inch below normal. Willamette river height at Salem Wednesday morning, 4.1 feet. TVA Unsuited For Northwest Eugene, March 9 (IP) Presi dent Truman's top economic ad viser said here last night that the Tennessee valley authority pro gram cannot be transplanted whole to the Columbia valley. Dr. Edwin G. Nourse, chair man of the president's council of economic advisers, said TVA was an experimental project I believe that it is a great mistake to think that TVA could be transplanted altogether into this area or into a"ny other area Consequently, I would say it is necessary first of all to find out what the conditions are here. We must find what ingredients will fit the situation." He made the statement in an swering a question by one of some 150 stale business leaders at a meeting to hear him. nourse also said he saw no reason to think 1949 will see a business recession if businesmen keep their heads. He predicted "an excellent level of prosperity, minus the inflationary pressures of 1948. He said 1949 is "the year of catching up. We have to face the completion of the catching up process." He said this had been going on since the end of the war. The former vice president of the Brookings Institute said he delected a feeling of uncertainty, of "waiting to see which way the cat will jump." Referring to the securities slock market, the economist said "the market can't crash at this point. It is already too close to the ground." Mary Garden to Make Lecture Tour Detroit, March 9 VP) Mary Garden, famed opera singer of another generation, is coming out of retirement to make a lecture tour. The National Arts Foundation announced today that Miss Gar den will return to this country next fall from her native Scot land, where she retired in the mid-1930's. Carleton Smith, foundation director, said Miss Garden will lour 25 cities In the United States and Canada with pro ceeds to be used to finance teaching of the arts to students selected by the non-profit foun dation. Miss Garden also will help teach talented young singers. Sherman Pleads Guilty to Looting Safe, Asks Leniency Cornelius W. Sherman, ex-nighl clerk at the Mnrion hotel, pleaded guilty before Judge George fl. Duncan Wednesday lo a charge of looting the hotel safe of $200 and when District Attorney Ed Stadter, Jr., recommended leniency in the ease the court or dered a pre-sentence investigation be made before he determines what disposition of the case will be had. The loot amounted lo more than the $290 named but some of it was in checks and il was slated the checks can prob ably be replaced The money was part of the hotel receipts. Sherman slipped into the hotel office while a relief clerk was on duty and extracted the mon ey while the other clerk was busy. He has returned in the neighborhood of $100, the dis trict attorney said. Stadter told the court that Sherman had been very coop erative and in the light of this he suggested not only leniency but possibly that probation be granted The hearing disclosed that Sherman had been arrested in Denver, Colo., in 1938 on a rob bery charge but he said that was dismissed. In 1939 he was ar rested in San Francisco on an undisclosed charge and taken to Eureka, but he also said that matter was dismissed. However, he did serve eight months In San Quentin being sent up from Los Changes Held De signed to Strengthen Leadership Moscow, March 9 flPi Two more high level Soviet leaders were promoted today. The latest shifts in the cabinet of Prime Minister Stalin saw A. I. Efre- mov relieved as minister of the machine tool industry and lipped tu vice chairman of the council of ministers, the Soviet cabinet, A. I. Kostousov succeeds to Efremov's ministry. The moves came only a few days after V. M. Molotov, Stal in's closest associate, was reliev ed of the foreign ministry and replaced by former Deputy For eign Minister Andrei Y Vishin sky. Molotov 59 Tears Old Molotov, who is 59 years old today, retains Hie posts of first vice chairman of the council of ministers and member of the policy-making politburo of the communist party. Vishinsky's spot as first dep uty foreign minister was taken over by Andrei A. Gromyko, former chief Soviet delegate to the United Nations. The news of Efremov's promo tion was handled by the Russian newspapers in the same way as the announcements affecting Molotov and Vishinsky. It appeared under the heading of "public announcements" on the back pages of morning news papers. There has been no comment in the Soviet press on any of the cabinet shifts. Western Views on Shifts western diplomats have ex pressed the opinion that the shifls of Soviet officials, total ing seven with those promoted today, were designed to strength en Russian leadership. Western diplomats in Moscow have said they viewed the changes as a move to give the deputy prime ministers some of the duties of Stalin, now almost 70 years old, and reported In 111 health. There has been some specula lion that Stalin may relinquish the prime minister's post to Mol otov. Stalin became prime minister in 1941, shortly before the war. Swiss Expect U.S. to Pay Bern, Switzerland, March 9 VP) The Swiss government ser ved notice today that It expects the U. S. to pay interest on its $16,000,000 war damage claims Switzerland claims the U. S. airforce caused the damage by accidentally dropping bombs on neutral Switzerland during World War II. The worst inci dent took place January 4, 1944, when Schaffhauscn near the German border was blasted. The U. S. made an Immediate payment of $4,000,000 after this incident, but further payments have been held up by congress, the Swiss federal council said. The federal council said Amer ican legislation for a further $2,300,000 payment would cover only a part of Swiss claims, es p e c i a 1 1 y as "a considerable amount of interest" would have to be added to the original claim. Veteran Actor Dies Hollywood, March 9 IP) Death has laken John Maurice Sullivan, 73, retired actor who appeared on the stage with Rob ert Mantoll and Chauncey OI cott many years ago. Angeles in 1940 on a burglary charge. After getting out he did 314 years overseas in the armed forces and was granted a dislion orable discharge. He told the court he had giv en back a large part, of the mon ey already and wished to make restitution of the balance. Richard D. Fones entered a plea of guilty lo obtaining mon ey by false pretenses by cash ing a worthless check on the Pink Elephant for $10 Deputy District Attorney Gordon Moore said he'd as yet been unable to get much light on the case and asked that a pre-sentence inves tigation be made which the court ordered. I.estcr Dunn entered a plea of guilly to larceny of sacks and he was sent to the Oregon Slate hospital for observation. Dunn has been involved in sack steal ing episodes before and served a jail sentence here on such a charge. He is lo he under scru tiny at the stale hospital for 30 days. Treaty Fits Within United Nation's Char ter on Aggression Washington, March 9 VP) Secretary Acheson said today the Atlantic treaty, as now drafted, makes clear the nations signing it will defend themselves against aggression from any quarter. Summarizing at a news con ference the -negotiations on the treaty text, Acheson pictured the pact as the end result of western policy developments brought on by Russia's blocking of peace. Only yesterday, the secretary of state discussed the proposed treaty with the senate foreign re lations committee. The members informally approved a final trea ty draft. Treaty Draft Approved Acheson did not disclose the treaty text in his news confer ence discussion. But he said that in his opinion the United States. Canada and the countries of western Europe have, through the text as it now stands, ac complished four major achieve ments: 1. They have recognized the fact of life in preparing to es tablish a formal relationship be tween the United Slates and the western European countries. Acheson said this relationship is not artificial but has existed 300 vears or more and has its roots in the common ideas and common institutions of freedom. (Concluded on Page , Column I) Senate to Vote Pact Approval Washington, March 9 VP) Senate approval appeared as sured today for the projected North Atlantic security treaty. Finally completed after eight months of negotiations, the un precedented 20-year alliance won an informal okay from th senate foreign relations commit tee yesterday. No strongly or ganized opposition was in sight. The pact would have the ef fect of binding the United States to the defense of western Eu rope, although it would slill b up to congress to determine in event of an attack whether war should be declared by the United Slates against the aggressor. The alliance Is intended to make such a demonstration of unity on the pari of the western powers that Russia, If it ever so tempted, would not dare to attack any one of them. The text of tin proposed treaty is expected to be made public In about a week, before it is signed. Officials now be lieve it will be signed by the end of the month possibly at a meeting of foreign ministers of the Atlantic powers In Wash ington. Only after tha signing, In which eight or more countries are due to participate, will the treaty be formally presented to the senate. British Cabinet To OK Treaty London, March J) P The British Cabinet is expected to Rive its formal approval to a final draft of the Atlantic pact tomorrow. Foreign Secretary Ernest Bev ir and his topmost advisers were Riving the draft a last once-over today, government informants said. Britain will send back word of the cabinet's expected ap proval and commentsif any in time for the Washington ne gotiators' last scheduled discus sion of the Text Friday, the official said. The British foreign office ex pnets the treaty to be signed cither in the last week of March or I he first work in April. The place of signature it will be either Washington or Jlermuda with the odds nn Washington prnbahlv will b settled Friday too. 1h British ?a y. The part which strategically important Greenland will play in the pact-partners' strategic plans is expected here to come up for close study in Washington in the next few days. Greenland is a Danish possession. Den mark's Foreign Minister Gustav Rasmussen is due in the Ameri can capital tomorrow for talks with Secretary of State Dean Acheson. The United States still has operational control of two airfields in Greenland. Ex-King Left Fortune London, March 0 ifl- Former King Victor Emmanuel of Italy, who died in Cairo in J 947, left an estate in England valued at 1.5.12.287 ($6,120,148). court records disclosed today. Details wert not revealed.