"Senators Vote Unanimously For Tax Program Major Bills Provide Enough Money to Balance Huge Budget Capital A Senate Smashes Biggest Threat T" DsilMfAl'M Dill Foreign Envoys Journal Put OK on Text Of Atlantic Pact Ministers of All 12 Nations Prepare for Signing Treaty. 61st Year, No. 79 Entered u eeecrad eleju matter at Balem Oretot Salem, Oregon, Saturday, April 2, Price Five Cents ,IU IVClUVCiy UNI By PAUL W. HARVKY, JR. The senate gave unanimous approval today to the main leg islative tax program, which pro vicU's enough money to balance the .state's huge budget for the next two years. Passage of the two main bills clears the biggest obstacle toward ending long legisla tive session, although there still are plenty of other obstacles left. The bills have to go back to the house, however. In brief, the bills provide: provision of Bills Use of enough of the exist ing $51,000,000 income tax sur plus to balance the budget. Let future corporation income tax receipts be used to pay state expenses, after offsetting state property taxes and setting up a $15,000,000 reserve fund. Keep on using future person al income tax receipts for prop erty tax reduction. As the law now stands, all corporation and personal Income tax receipts can be used only to reduce property taxes. This in cludes the surplus on hand. It will solve the state's finan cial headache for the next two years Warning by Walker But Sen. Dean H. Walker, In dependence, chairman of the senate tax committee, warned that the 1951 legislature either will have to enact new taxes, or else put more tax burden on property. By 1951, there won't be any income tax surplus left. What the house will do with the senate version of the tax bills is uncertain. The idea of using the existing surplus is the senate's. The senate also made widespread changes in the tech' nical mechanics of the bills. When the legislature quit to day, it assured itself of setting an all-time record for length of a legislative session . Today was the 83rd day, and the record 1947 legislature ended on the 84lh day. 8 Big Problems Left The lawmakers still have to finish action on their eight big- . tfr-st problems and it looked like it will take at least another 10 dnys. However, some leaders think they might wind up a week from today. The house, to speed thinks up, adopted a rule limiting debate It limits each speaker to five minutes on any one bill, although other members can yield their time. The senate has had a sim ilar rule for several weeks. Adjournment Due April 12 With no major legislation yet enacted into law, the 45th le gislative assembly will not finally adjourn until April 12 or 13th, according to estimates of legislative leaders Saturday William E. Walsh, president of the senate, declared that he was strongly against any hectic Saturday night or Sunday morn ing adjournment and would much prefer to return for few days after April 9 and end (he session In an orderly man ner. This view was concurred in by Speaker of House Frank J Van Dyke. The legislature was in its 83rd day Saturday, thus tying the re cord for a long session of that set bv the 44th legislature. If the adjournment takes place on April 13 the session will have consumed 94 days. Fear has been expressed by some weary solons that the pre dictions of the president of the senate and the speaker are too conservative and that if the long-winded oratory which has featured senate sessions, parti cularly during the last few days, continues, adjournment they will not be able to pack up and go home until April 15 or 16th. Record Pay lor Jobless Workers Payments to Oregon's unem ployed during March were at an all-time record of $4,166,215, but claims for compensation fil ed last week had dropped to 30 percent under the winter's peak The state unemployment com pensation commission reported 48.616 claims filed last week for benefits. Payments in the first three months of this year totaled $10. 967.347. This was almost a mil lion dollars more than the pre vious record set in the first quar ter of 1946. It was more than was paid in the first 10 months of last year, t More than 40 percent of the unemployed were logging and sawmill workers, with construc tion industries providing another 12.5 percent of the Jobless. Bill to Cut-off ighway Funds From Cities Dead By JAMES D. OLSON Hopes of sponsors of the sen ate hill designed to stop the state highway commission from con structing any roads within the limits of cities were dim after the senate returned the bill to the committee for further con sideration. The action of the senate came after 2 Vi hours of debate, which became decidedly acrimonious at times. Senator Paul Patterson, chair man . of the senate roads and highways committee opposed the bill declaring that it was intro duced because the highway com mission proposed to expend $7, 800,000 in the Salem area on a traffic plan and planned to build the Sullivan Gulch throughway in Portland. Patterson Opposes Bill "The sponsors of this bill over look the fact of the total pro posed to be spent on the Salem traffic project, $4,700,000 will be expended outside of Salem. In addition $3,900,000 of the funds to be expended will be from the federal government," he said'. Senator Allen Carson of Mar ion county said the sponsors of the bill were "sandbagging and hyjacking" Salem and said that many of the 16 senators whose names appear on the bill "were being used. "We've been running around in Salem for years with our highway seat out of our pants," Carson declared. Small Cities Also Hit In explaining his conception of the effect of the bill if pass ed, Senator Patterson used the proposed four-lane Salem-Port-land highway, as urged by many of the senators, as an example. (Concluded on Page 5, Column 8) Oleo Tax Repeal Voted by House Washington, April 2 (IP) Backers of a house-approved bill to repeal all federal taxes on oleomargarine said today its senate chances look good, de spite the promise of bitter op position from dairy-state law makers. Senators from butler-produc ing states readied a substitute measure and said they are pre pared to "talk at length" to pre vent passage of the repeal bill which the house passed yester day by a 287 to 89 vote. In stamping approval on the bill to erase the 63-year-old taxes, the house reiected all ef forts to outlaw interstate ship ment of yellow margarine. However, the measure stipu lates that yellow oleomargarine sold in public eating places must be triangular in shape and lden tified as oleomargarine. The bill does not affect the laws of 18 states that prohibit the sale of the yellow product. .Hardly had the house voted when Senator Wiley (R.. Wis.) announced that he and 20 other senators are ready to Introduce a "states rights bill to: 1. Repeal the oleomargarine taxes; 2. Prohibit interstate ship ment of yellow oleomargarine and 3. Let the individual states decide then whether they will permit the sale of the yellow product. Complete Rights-of-Way For Broadway Extension County Surveyor Dale Graham reported to the county court Saturday he had completed negotiations for the last of the parcels of ground needed by the county for the extension of Broadway from its terminus inside the north city limits to the North River road. Albert E. and Nora M. Wickert have given an option to the county to purchase 245 feet of 60-fool rishl-nf-way through their place for $1400. This in cludes 16 walnut trees which will have to be removed. The Salem Realty board had ap praised the property at $1280, the county had made the $1400 offer before the appraisal and the Wickerts had been suggest ing $2000 as a reasonable figure and the amount taken is by way of compromise. While the county has now completed its job of securing right-of-way it is different with the seven parceis the city has to acquire inside its limits be fore work on the road can go ahead. None of these has been purchased. City Engineer J. H. Davis says that appraisal of six of these pieces totals $3185 with the sixth place, formerly own ed by Marion county, in some thing of a jam as to its title and appraisal delayed until this is squared away. Rent Ceilings Lift in Areas Of Four States Washington, April 2 (IP) Rent ceilings were lifted today on 36,- 500 dwelling units in four states. Housing Expediter Tighe Woods said more than 80 other areas in 23 states will be decontrolled within a week. Wood accompanied the re moval of restrictions with a sharp warning that ceilings will be slapped on again if "an un reasonable increase" in rents re sults from the moves. - Twenty areas in Alabama, In diana. New Jersey and Texas are affected by the initial decon trols. The move resulted from a pro vision of the new rent control act which empowers Woods to remove ceilings anywhere in the nation but to put them back on if unusual rent boosts result. Policing Continues The housing director made it clear that his agency will con tinue to police rents in decon trolled areas. He said local ad visory boards have been told to stay in existence and keep in tact the machinery to enforce new ceilings "should the need arise." Information now available Woods asserted, is "inconclusive as to whether the demand lor rental housing has been reason ably met" in the areas involved in the present series of actions. He left little doubt that he will order new ceilings should rent gouging follow the decontrol ac tion. Power to Replace Given The statement announcing the ending of restrictions called it a decision to "take a chance" on lifting controls now that the ag ency has power to replace tnem Today's action does away with ceilings on 30,100 dwelling un its in eight localities in Texas; 4550 units in six areas of Indi ana; 1800 units in one Alabama county: and 150 units in five New Jersey townships. As the housing expediter made his first moves under the new 15-month rent law, his staff whipped into shape a statement of official policy under the bill Sfassen Seeks Aid for China Boston, April 2 (IP) Harold E. Stassen said last night that this nation should move against communism b y "bolstering" southern China and all of Asia with a billion-dollar-a-y ear "MacArthur plan." Such a move, patterned after the Marshall plan, is needed, he said, to make up for "inaction or withdrawal of aid" which "con tributes to the communist dom ination of China." The 42-year-old University of Pennsylvania president shared platform honors with Winston Churchill at the Massachusetts Institute of Technology convo cation of top scientists and think ers at Boston Garden. "We should move, and move promptly," Stassen said, "to bol ster the southern half of China." Stalin and the entire philos ophy of communism were at tacked by the speaker who said he saw little difference between the "fuehrer principl of Hitler's system" and the "centralism of Stalin's." Work on securing this right of way apparently is somewhat sidetracked now by the new proposal before the city coun cil to extend North Commercial street to the river road. This job as shown in the report of the engineer 'has an estimated cost for right of way of $29,000 but this is subject to review by the appraisal committee of the Salem Realty board which has an appraisal under way now. Engineer Davis was unable to say when work on the city part of the Broadway extension right-of-way can progress. The man who has been assigned to the work is quitting and when the job will be resumed is problematical. Engineer Davis said he had hoped to be able to get ahead with the actual construction work this spring so grading could be had and rock put on this summer, but all this is held up until right-of-way can bt ironed out. i Big Tree Crashes Wrong Way This huge black wa,nut tree leuea Dy Lewis Myers ana nis crew loppiea eisewnere man calculated and crashed through the house and garage ot W. R. McCarroll, 425 South 22nd street. Mrs. McCarroll is shown pointing to the section most heavily damaged. Planning Group Approves Baldock Bridge Plan The Salem long-range planning commission Friday night ap proved in the main the Baldock bridge routings and construction The two-bridge plan in the Baldock report was approved by a vote of 8 to 6. The vote was by secret ballot. Gruening Denies Being Dictator Washington, April 2 W The senate interior committee today weighed arguments for and against confirmation of Ernest Gruening to continue as gover nor of Alaska. Chairman O'Maticney (D . Wyo.), indicated that a decision will be made soon possibly within a matter of a few days The committee worked late yesterday to wind uo in one day its hearing on the nomination. Members heard these charges made and denied by delegations of Alaskans: 1. That Governor Gruening had used dictorial methods, and sought unduly to influence legis lators in favor of hij program. 2. That he campaigned among Alaskan natives with favored candidates for the territorial leg lslature. 3. That he has hindered the Development of Alaska by his stand against "absentee owner ship." Gruening took the stand to oeny the charges himself. He said he had pressed for enactment of his program for the development of Alaska, but was in no sense a "dictator," and had no power to be if he had wanted to be. Pope Celebrates 50 Years Priesthood Vatican City, April 2 (IP) Pope Pius XII celebrated the 50th anniversary of his priest hood today. Fifty thousand Catholic school children knelt before the Pontiff in Ihe Belve dere court of the Vatican in the only public ceremony marking the day. The children, from the third fourth and fifth grades, made the day a joyous occasion for Pope Pius. He smiled and nod ded encouragement to tiny speakers and singers ranged be fore him and preached a ser mon on the virtues of family, love of God and charity. Hundreds of childien nearest the roped-off area before the throne platform thiew their flowers toward the pope. $35,402 Checked in For Red Cross Drive A sum of $35,402 was checked in for the Saturday noon report on tne Hed Cross fund campaign, tne amount including $500 ir pledges from several local firms Only $1'5 came in Saturday morning, but Monday is expect ed to bring in further reports trom county areas. Less than $6000 is In so far from county areas, tho rest of the audited money, around $29,000 being from the Salem divisions in the campaign. All contributions are asked to be sent in to the Red Cross of fices, the drive headquarters be ing moved there. On Summer Time London, April 2 (" Britain goes on summer time one hour ahead of Greenwich mean time and six hours ahead of Eastern Standard time, at B p.m. (PST) tonight. Summer time will last until October 30. recommendations for street and in Salem. Each part of the leport was voted on in a separate resolu- lion, and with the exception of the bridge resolution, the vote was unanimous. The approval will go as a rec ommendation to the board of di rectors of- the Chamber of Com merce and to the aty council. One reason for dela ed action by the council was to await a de cision of the plannirg commis sion, and the vote Fiiday night is expected to have much weight when the city council acts. Deviations from the Baldock report are a north Salem two way routing via Pine street from Highway 99E to North Commer cial street, which is not objected to by R. H. Balilpc.k, state high-. way engineer, -and a vote favor ing delay in adoption of the one way street grid until after com pletion of a new bridge at Mar ion street. Relative to bridges Ihe vote of the planning commission recom mends "that the new bridge be located at Marion street; that the present Center street bridge approaches be rebuilt, and that both bridges be connected to west side streets and highways by appropriate under and over passes." The new Marion street bridge would be for one-way westbound traffic. The rebuilt Center street bridge would be for one-way east-bound traffic. Bridges were the main cause oi division in the commission, several members holding out for new four-lane bridge at Divi sion street. The majority con ceded some advantages to the Di vision street plan, but cited the smaller cost of the Marion-Center plan and shorter distance by four-fifth of a mile between Sa lem and Dallas. On the grid system the recom mendation is that it "be deferred for the time being, and that if and when the Marion Center street bridges are completed, that those streets be made one way streets as recommended in the Baldock report." (Concluded on Page, fi, Column 4 Crowds Force Truman To Stop His Walks Washington, April 2 IIP) President Truman has stopped walking to and from work. The crowds were congesting traffic the White House explained to day. Sightseers thronged to walch Mr. Truman's daily progress from Blair house, his temporary residence, eater-corner across Pennsylvania avenue to the White House, now under repair. Large crowds assembled each evening for the return stroll. With the tourist season only beginning, White House officials decided it would create less dis turbance if Mr. Truman used an official limousine. THE WEATHER (Released by United States Weather Bureau) Forecast tor Salem and Vicin ity: Clear tonight becoming partly cloudy and slightly warm er, Sunday. Lowes tempera ture expected tonight, 33 de grees; highest Sunday, 62. Max imum yesterday 56. Minimum to day 35. Mean temperature yes terday 47 which wan 2 below normal. Total 24-hour precipita tion Uy 11:30 a.m. today trace. Total precipitation lor the month trace which is .15 ot an Inch below normal. Wlilnmptt river height In Salem Saturday morn ing. 3 feet. Tree Crashes Home, Garage A walnut tree, 75 feet high, that was being felled Friday aft ernoon, crashed down upon the W. R. McCarroll home and ga rage, 425 South 22nd street, and did serious damage. The tree was being cut down by Louis Myers and crew, and failed to fall in the direction in tended. Big holes were torn in the roof and walls of the house toward the rear, and the garage adjoining was badly crushed The bath room was badly dam aged. Luckily, all members of the family were outside at the time watching the felling process, so no one was hurt. McCarroll said the house was not insured against damage of the kind but he thought the fallers were in sured. Violence Flares In Tax Strike New York, April( 2 WV-Arrests in a (eri'sion-charged taxi cab strike rose to 27 today as police reported one cab partly wrecked, another stoned and the non-striking driver of a third pummeled by several men. Two men who identified themselves as officials of the striking union were among those arrested. The first flurries of violence in the day-old strike came amid conflicting reports as to the number of the city's 11,500 cabs immobilized by the tieup. Police reported a total of 620 cabs operating at 8 a.m. (EST). Three hours later, operator's representatives said 3,000 were moving through the police- guarded streets. The union de clined comment on the latter claim. As the numbrr of arrests climbed steadily, Peter Landino, 32, who said he was an inter national representative of the cab drivers union, was arrest ed on a disorderly conduct charge. He was seized on the complaint of a non-striking driv er who named Landino as one ot two men who hurled rocks at his cab. Another man was arresled in outlying Queens after William Crimi told police several men halted his cab, then punched and pummeled him. Freezing Weather in East Chicago, April 2 (IP) It was freezing weather today from the Rockies to northern Indiana. Generally, except for the south ern part of the country temper atures were a little below normal over other areas. More snow fell in western Kansas, Colorado and southwestern Nebraska. Friendliness With Russians Barred by Iron Curtain New York. April 2 (U R Winston Churchill said ! iriay that it was his "dear wish" that the western nations could become friends of the Russian people "if we could only get to them " "It is a great grief to the British and American people that the valiant Soviet soldiers who fought so bravely have been misled into the position their govern-'v meni nas put mem in ai me pros. ent time," Churchill said. "Ill is my dear wish that ve could be friends of the Russian peo ple. If we could only got to them we would be glad to stretch out the hand of friend ship." The 74-year-old war time prime minister held n press con ference aboard the Queen Mary before sailing for England. Puf fing contentedly at one of his long cigars, he chatted infor mally with the press. Church ill, who arrived after an over night train ride from Boston, wore one of his famous "siren suits." Speaking of Russia, he said: It would make a great differ enca If they opened their bor Amendment Cutting Outlays for Marshall Plan Defeated Washington, April 2 (IP) A major victory under their belts, senate leaders pushed today to ward final approval for the $5,- 580,090, 000 European Recovery Program. While a pile of policy-changing amendments lay ahead, what was probably the biggest threat to the hill for a second-year Mar shall Plan was smashed last night. That was the proposal of Senators Tatt (R., Ohio) and Russell (D., Ga.) to cut the cash outlays for foreign aid 10 per cent. The senate beat back the Taft Russell amendment by a lopsid ed 54 to 23 vote. But because of Ihe stack of amendments still awaiting actions, there was a chance a final vote would be delayed until next week despite today's unusual Saturday ses sion. Economy Moves Lose Out Leader Lucas of Illinois said. all remaining amendments seem ed sure to be defeated. Lucas said he was surprised at the margin by which the economy move lost out, and add ed: "The psychological effect throughout the world will be tremendous. The communists can't use thi for propaganda and they can't say we welshed on our promises to Europe." Senator Byrd (D., Va.) told reporter the vote probably seals off any efforts to cut the budget this year. He discounted the promise by Senator Vandenberg (R., Mich.) that the appropriations commit tee will have a free hand to cu actual cash outlays on the aid bill. Wherry Move Defeated Fourteen republicans and nine democrats voted to cut the au thorization which serves as ; ceiling over laler appropria tions. Of the democrats, all were southerners except Sena lor Gillette of Iowa. Voting against the Taft-Russoll propos al were 35 democrats and 19 re publicans. Before (he crucial lest on tha amendment, (he senate defeated on a 68 to 14 vole an amend ment by Senator Wherry of Ne braska, the GOP floor leader to lower the coiling on tiie aid fund by 15 percent. Taft and Russell both voted against this. Syria Ruled by Army Council Damascus, Syria, April 2 (U.RJ The army, abandoning efforts to form a new parliamentary gov ernment, dissolved Ihe chamber of deputies and set up a preme military council to rule the country today. The military concil is headed by Col. Hiisni Al-Zaim, army chief of slaff and leader of thi bloodless coup which deposed Premier Khalcd El-Azam s gov ernment on Thursday. The military council is headed assisted by a council of under secretaries, an official announce ment said. It said a const itu tional commission also will he set up to investigate the eslab lishment of a new constitution and electoral system. Government sources said Ihe United States and British minis ters informed Al-Zaim on Thurs day that they viewed Syrian po litical developments as an in ternal affair and looked forward to the establishment of a stable government soon. Al-Zaiin's supporters inler- pretod this ? lion" to the i "favorable rcac cnup. , . ,,,, nnm)ic -ome in .. go out freely, like other coun tries. "It's extraordinary to have this communist paradise. They are afraid to open the doors for fear all the cherubs will fly out or at least as many as have got wings." Asked to c-laborale on his dec laration in his March 31 Boston speech that it was certain Eur ope would have been commtin ized and London under bombard ment "but for the deterrent of the atomic bomb in the hands of the United States," Churchill raised eyebrows and beamed Then he said: "Don't you think it slands bet- - .ter in iti naked ilmpltcity?" Washington,, April 2 (IP) For eign ministers of all 12 Atlantie pact powers were called into their first huddle today to start drawing up grand strategy ma chinery for the non-communist western world. Reject Russia's Charge The 12 Atlantic pact foreign ministers rejected outright today Soviet Russia's charge the treaty is aggressive in Intent and di rected against the Soviet Union. In their first formal meeting, they also unanimously approved without charge the text of the treaty to be signed here Monday. A statement adopted by tht group as its first action said that he treaty text refutes the charge Moscow made yesterday. The western representatives said that complaint from Russia included misrepresentation. "The text makes clear the omplctely defensive nature of this pact, -its conformity with botli the spirit and letter of tha charter of the United Nations, and also the fact that the pact il not directed against any nation group of nations but only on aggression, the statement con cluded. The officials were first expect ed to make a formal check of tha treaty which was completed her early this month, then inform ally talk over the kind of agen cies which will be needed to carry out the aims of the alli ance. Two strategy groups are speci fied in the pact itself: a consul tative council and a defense com mittee. All 12 member nations presumably will be represented on each of these bodies. Consultation Council The council, according to the reaty, must be so organized that it can meet on short notice to deal with any emergency. It i the body which would be sum moned into hasty session, for example, if one of the member of the alliance should be attack ed. (Concluded on Page H, Column ) Senate Debates Aid to Europe Washington, April 2 (IP) Sen ator Ellender (D La.), urged Ihe senate today to require Eu ropean countries receiving American aid to increase tha flow of war materials to thii country. The Louisiana senator led off in the eighth day of senate de bate as leaders pushed tqward a final vote probably next week on a measure to make $5,580,000,000 available in eco nomic aid for western Europe. Senator Lucas (111.), the dem ocratic leader, said he may seek an agreement later to vote on passage -of the bill early next week. He planned to hold the senate In its unusual Saturday session until 8 p.m.. EST, he said. Ellender offered an amend ment requiring that 25 per cent of the money received by Euro pean countries through their sale of American supplies la their own people be used to pur chase strategic materials for this country. He also proposed another amendment prohibiting the use of American dollars to pay off foreign national debls. Radford Commands Fleet in Pacific Washington, April 2 (IP) Pre sident Truman today nomin ated Vice Adm. Ar .uir W. Rad ford as commander in chief of the Pacific fleet and high com missioner of the Pacific islands. If confirmed by the senate, Radford will succeed Adm. De wilt Clinton Ramsey, who is retiring on May 1. Mr. Truman asked that the senalp approve for Radford the grade, rank and pay of admiral "while serving under a presi dential designation as comman der in chief Pacific, commander in chief, U. S. Pacific fleet, and high commissioner of the trust territory of the Pacific islands." Radford now is vice chief of naval operations. Ask $870OOlo Buy Lincoln School The joint legislative ways and means committee today recom mended appropriating $875,000 to buy Lincoln high school in Portland to give college exten sion courses under the board of higher education. But. Sen. Carl Engdahl. Pen- ',icton, told the committee that the school wouldn't be available tor about two years. The senate already has defeat ed a bill to put a junior college in Portland.