i A Inmina P ant ri a jk
Chiang Returns
To Balllefront
Jour!?
Ask Russia for
,v ir 11
Purchase Sought A OI Ol iOLl
Details on Lifting
Berlin Blockade
U. S. Sends Note for
Shifting Negotiations
On Formal Base
r u -u.
ror Manganese i 6istYear,N
100
Enured m Meood eluf
matter t Itlin, Orwat
Salem, Oregon, Wednesday, April 27, 1949
Price 5c llll UVII VVQI
"L2QPaaes)
.ft
Seattle Company May
Use It Processing
Army Metals
What ImporUnee may he
placed on a report that Mangan
ese Products, Inc., is negotiating
for the former Salem alumina
plant, to use for processing army
metal stockpiles, is a question.
The big plant, built by the
government in war days at a
cost of $5,000,000 or more, Is
now used as a fertilizer manu
facturing plant, operated by
Columbia Metals corporation.
In Seattle Tuesday John ft.
Allen, president of Manganese
Products, Inc., said the plant
might be used to process army
metals.
One of Four Bidders
That firm was one of four
bidders when the war assets
administration had the plant up
for sale several months ago. Its
offer of $750,000, however, was
not accompanied by the usual
certified check, and it proposed
to pay for the plant out of the
profits. In Washington the of
fer was not considered a bid.
The other three bids, one of
which was made by J. O. Gal
lagher and A. W. Mitzger of
Columbia Metals, were rejected.
It is reported in Salem that
Manganese Products has had
representatives in Washington
recently, and Allen is reported
to have said Tuesday that his
firm has been given 30 days to
submit a price to the army on
ferro-manganese production at
the plant. The Seattle dispatch
said a negotiated price of $750,
000 was reported to have been
placed on the plant.
To Make Fertilizer Also
At the time the four bids were
rejected it was said in Washing
ton that the WAA would nego
tiate for sale of the plant instead
of again calling for bids.
Under Allen's plan, it is said,
fertilizer and ferro-manganese
processing would be carried on
at the same time. The army is
reported to have a large stock
pile of ore at Las Vegas, Ne
vada. Alien said Manganese
Products, Inc., eventually would
expect to use its own manganese
ores from the Olympic penin
sula, where it has properties.
Metzger, who is manager of
the plant for Columbia Metals,
said he had no knowledge of the
Allen plan. The plant, now
making ammonium ailphate fer
tilizer for a western market, will
close for the spring season Fri
day of this week.. It wiU still
have on hand a considerable
quantity of fertilizer which it
will put on the market.
The lease of Columbia Metals
expires June 30, and it is doubt
ful If operations will be resum
ed before the government de
cide what disposition is to be
made of the plant.
Atlantic Pact
Hearings Held
Washington, April 27 W
Secretary of State Acheson
pleaded with congress today to
approve both the North Atlantic
treaty and the proposed $1,450,
000,000 arms aid program to
bolster "world-wide security."
Acheson appeared before the
senate foreign relations commit
tee at the opening of hearings
on the pact which was signed
here April 4. It requires approv
al by a two-thirds vote of the
senate before it can be ratified.
The cabinet officers termed
the 12-nation security treaty and
the foreign military assistance
program parallel ways of build
ing world security and said he
believes both are necessary.
But he met head-on one of the
biggest questions raised by some
congressional critics by saying
that the treaty does not formal
ly bind congress to approve the
projected military program.
What the pact does do, Ache
son said. Is bind the United
States to the principle of "self
help and mutual aid." He went
on:
"There is an obligation to
help, but the extent, the man
ner and the timing is up to the
honest judgment of the parties. '
Seal Hunters Rescued
St John's, Nfld., April 27 J.
Twenty-five seal hunters were
rescued today after spending 24
hours on an ice floe off the coast
of Belle isle, between Newfound
land and Labrador.
THE WEATHER
(Released by United Btates
Weather Bureau)
Forecast for Salem and Vicin
ity: Mostly cloudy and slightly
cooler with occatlonsl light rain
tonight and Thursday. Lowest
temperature expected tonight, 43
degrees; highest Thursday. M.
Maximum yesterday 74. Mini
mum todtT 47. Mean tempera
ture yesterday M which was I
above normal. Total 24-hour
precipitation to 11:30 a jr. today
0. Total precipitation for the
mm.U ,A lwh V,4t la
ll 1.7$ Inches below normal. Wll
K lamette river height at Salem
County Budget
Board Ponders
Fund Requests
The county budget committee
Wednesday Is whittling its way
through an all day sequence of
hearings, none of them designed
to aid in the big problem of the
committee to cut its cloth to fit
the six percent limit imposed on
Its levy but mostly designed to
add a bit here or there.
County Judge Grant Murphy,
chairman of the committee, ex
pressed hope that the committee
might wind up its labors Thurs
day when it will have most of
its hearings completed and can
do some digging into the figures
themselves.
More Agents Requested
Most of Wednesday morning
was used up in a hearing on a
request for an additional helper
for home demonstration agent
under the extension service. Clif
ford Smith of the state extension
department at Corvallis, ex
plained that the legislature had
provided funds to play the sal
aries of five extra demonstration
workers over the state and one
will be allotted to Marion coun
ty if the county will furnish ne
cessary funds for her expenses
and secretarial assistance. The
total asked from the county is
$2500 and this is over and above
any provisions now contained in
budgetary requests.
A home demonstration com
mittee consisting of Ivan C. De
Armond, Mrs. Floyd Fox and
Mrs. Frank Way appeared on be
half of the additional agent. They
explained that there are now 29
units, serving nearly 1000 people
and 12 applications for other un
its are on file. An agent is sup
posed to handle 18 units so the
staff is now way beyond its depth
in this work alone in addition to
countless other tasks facing it,
said the proponents.
(Concluded on Page 5, Column 7)
Seek Probe of
Sullivan Case
Washington, April 27 VP)
Republican senators today call
ed for a detailed inquiry into
the reasons for Secretary of the
navy bulllvans resignation.
Sullivan quit yesterday with
a blast at Secretary of Defense
Johnson for halting construc
tion oi the USS United States,
which would have been the
world's largest aircraft carrier.
While Chairman Tydings (D
Md.) of the senate armed serv
ices committee chalked up the
matter as a "closed incident.
GOP committee members said
they thought the group should
aig deeper Into the dispute. .
Among those mentioned as a
possible successor to Sullivan
is Jonathan Daniels, editor of
the Raleigh (N.C.) News and
Observer. Daniels was due in
Washington today in his capa
city as a member of the advisory
board of the economic coopera
tion administration.
Democrats appeared willing
to follow Tydings unless Sulli
van himself should ask a con
gressional airing of his differ
ences with Johnson.
But Senator Bridges (R.. NH)
top-ranking GOP committee
member, told reporters he
thought there was "an under
standing" with Tydings to call
up Sullivan for an explanation
in view of the conflicting
statements mat nave been ban
died about."
Gillnet Fishing to Open
Astoria, April 27 VP) Gillnet
ters plan to fish when the com
mercial salmon season opens
Sunday and keep price negotia
tions going at the same time.
I- b 1
8 i
I n I! I
Burglary Suspects Four young men are held in the county Jail at Dallas following their
indictment by a Polk county grand jury on a charge of burglary not in a dwelling for the
theft of a safe from the "Y" cafe. The four were returned Tuesday from Sacramento, Calif.,
where they were arrested. Shown above, from left, are Sheriff T. B. Hooker, Sgt. Avon May
field, Oregon state police; Jasper Boyington, 19. Otis Langley, 21; both of California; Charlei
L. Gepner, 21, Salem and Douglas Boyington, 1, of California. At the right Is Tony Neu
feldt. Polk county deputy sheriff. Deputy Neufeldt and Sgt. Mayfield worked together to help
solve the robbery and brought the accused men back to Oregon. (Photo by Abel, Dallas.)
Sub-standard
Schools to Share
In Basic Fund
By JAMES D. OLSON
Sub-standard schools of Ore
gon will not be deprived of al
lotments from the $17,500,000
annual basic school fund provid
ing such districts offer a reason
able plan for Improvements.
This statement was made Wed
nesday by Rex Putnam, superin
tendent of public instruction,
who said that many letters had
been received in the department
during the last several weeks
from school districts expressing
fear that state funds would be
withheld.
"Our entire plan of standards
zation of schools in the state
through use of funds provided
by the basic school law is to aid
the districts in meeting the
standardizat ion requirements,"
Putnam said.
Putnam said that thus far, no
school district had been deprived
of its share of basic school funds
since the law was adopted.
"It is true that many of the
schools in the state do not con
form to the standardization re
quirements but in most of these
cases the district has no ability
to issue further bonds but are do
ing all possible to improve con
ditions," Putnam continued.
Putnam said that while super
visors from the department fre
quently make suggestions for
improvements, the state does not
insist upon any definite program.
"When a district produces a
plan for overcoming our objec
tions," he added, "the state de
partment attempts to aid the dis
trict and certainly does not cut
them off at the pocket."
Recently directors of the
Woodburn school district ex
pressed fear that $40,000 of basic
school funds would be withheld
by the state. However, under
Putnam's policy, if a plan for im
provements is presented the dis
trict will continue to benefit
from basic school funds.
The state school head pointed
to the Silverton school district
as one that despite poor financial
condition had shown a willing
ness to overcome its difficulties.
"In the Silverton district ev
erything possible is being done
to improve the school district,
Putnam said, "and the depart
ment is endeavoring to aid
them
Failure of increases in assess
ed valuations to keep pace with
increased population and higher
costs is responsible for the plight
of many of the Oregon districts,
rutnam said.
Oleo Tax Repeal
Bill Approved
Washington, April 27 vn
The senate finance committee
today approved the house-pass
ed oleomargarine tax repeal
bill. Its action sends the meas
ure on to the senate.
Chairman George (D., Ga.)
announced the bill was okayed
by a voice vote. He said he had
no idea when the senate itself
might vote on it In view of the
press of other legslation.
Before the committee acted
it rejected 7-8, a rider amend
ment by Senator Edwin C
Johnson (D., Colo.) to cut ex
cise taxes sucn as inose on
telephone bills, theater tickets
and transportation back to
1942 levels. Virtually all were
raised during the war.
The oleomargarine bill would
repeal all the 63-year-old fed
eral taxes on the product. These
are 10 cents a pound on the col
ored kind and one-fourth cent
a pound on uncolored.
.4
0l
to rlt
vU hi 11 luAp mil. WUH
"'TTTT rmrmttJlJ&2. , - ,
llMtMrtnliniHiigY i ' i ii uniiT, ' iiiW'""'
Bush School to Dedicate New Wing Open house at Bush
elementary school his evening will commemorate completion
of the new wing recently occupied by 180 first, second and
third grade pupils in six classrooms and two special education
rooms. Teachers conducting classes in the new annex are, from
left: Mildred E. Wyatt, Lucile Berndt, Helen Philippi, Mil
dred Braaten, Georgia Snodgrass, Hortense Hegstad, Walter
Beck, principal.
$2,085,127 Budget
For Salem School District
Because of the necessity of carrying out a program of repairs,
much of which has been delayed since before the war, the cost of
additional teachers to keeD ud
well as the maintenance of new
$717,475 in excess of the 6 percent
Flying Saucers
Held No Joke
Washington, April 27 W
The air force said officially to
day the flying saucers "are not
a joke."
But in the same breath, the
air force said it is convinced
from nearly two years of care
ful study that there are "no
alarming probabilities" in the
mysterious aerial manifesta
tions. " " '
! On-the-spot Inquiries and so
ber findings have shown simple
explanations for many of the
things people saw or thought
they saw in the sky.
Nevertheless, a paper pre
pared by the intelligence divi
sion of the air materiel com
mand at Wright-Patterson Field,
Ohio, declares:
"The saucers are not a Joke.
Neither are they cause for alarm
to the population.
"Many of the incidents al
ready have answers meteors,
balloons, falling stars, birds in
flight, testing devices, etc. Some
of them still end in question
marks."
The paper added that the
"correct tagging of the remain
ing percentage is still the job
of project 'Saucer, of the intel
ligence division.
The paper, based on the long
air force study, became avail
able today.
Woman Jailed for
Dope Possession
Portland, April 27 Ml A
woman was held in jail today
on a charge of possessing nar
cotics seized in the safe deposit
vault of a mid-town bank.
Federal narcotlos agent
Charles J. Fahey said Mrs. Mary
Watts, 43, was replacing three
8-ounce cans of opium, valued
at $9,500, in the deposit vault
box when arrested.
She was held for grand jury
action after waiving preliminary
hearing on the charge. She re
fused to post $4,000 bail.
I
v, ;
: Jit
uLLi
with the growth of the district as
buildings, a Duaget wnicn is
limitation was presented by the
Salem scnooi aistrici ior consid
eration of the citizens commit-
tee Tuesday night. The voters
will go to the polls May 20 to
pass judgment on the excess.
The budget, which calls for ov.
erall expenditures of $2,085,127
entails an estimated tax levy of
41.7 mills, an increase of 5.7
mills over last year.
Salary schedules will be main
tained as of last year except for
the normal annual increases per
mitted under the salary program.
Estimated receipts have been
placed at $878,206, approximate
ly $40,000 higher than a year
ago. A tax delinquency of $93,-
518 has been estimated on the
1949-50 tax levy while a pro
rated discount of $18,700 has
been included bringing the total
which must be raised through
taxation to $1,319,140. Of this
amount $480,505 is inside the six
percent limitation and $838,834
is outside. Of the latter $717,475
is in the general fund, the bal
ance being ticketed for debt ser
vice.
Principal items include: In
struction $1,038,017, up from
$959,860, or an increase of $78,
157; operation of plant $148,504,
up from $123,473, increase of
$25,031; maintenance and repairs
$73,082, up from $46,855, in
crease of $26,227; capital outlays
$296,796, up from $154,905, in
crease of $141,891.
Twenty thousand dollars has
been earmarked for new sites
because the board bciievea it is
good policy to secure land in
growing districts before they
have become too heavily built
up. New buildings will cost $95,
000; building alterations $63,419
new furniture and fixtures $76,
562 and ground improvements
$36,445,
The citizens committee includ
ed W. L. Phillips, George Gra
benhorst, J. H. Willett, Wm. J.
Entress and E. J. Scellars.
Calder to Become
Secretary of Army
Washington, April 27 Wl
Curtis E. Calder, utilities exec
utive, has agreed to become
secretary of the army.
Gordon Gray, now assistant
secretary, will be promoted to
under secretary and serve as
acting secretary until Calder
can take over the post.
This is the job held formerly
by Kenneth Royall.
Calder, chairman of the board
of Electric and Share, says he
will be ready to take over the
top army post within 60 days.
Secretary of Defense Louis
Johnson, who had been urging
Calder to take the post, was re
ported to have discussed the
matter with President Truman
ouring a White House call to
day. Welfare Tax Election Looms
Portland. April 27 W Mult
nomah county may be asked to
vote on a $2,000,000 special tax
levy for welfare fund payments
due after July 1. Commission
Chairman Frank Shull said that
is the amount the county will
be expected to raise above the
current old age pension cost in
the next fiscal year.
Red Cross Fund
Shy Only $2,616
With only $2,616 needed to
complete the budgetary mini
mum of $43,000, local Red Cross
officials Wednesday launched
an Intensive drive of a few days
to complete the 1949 Red Cross
fund campaign here. Audit of
Tuesday afternoon revealed
$40,384 in toward the minimum
requirement of $43,000. The
overall objective had been plac
ed at $52,000 to allow for some
special services from the Red
Cross, with the lesser figure fix
ed as the required minimum.
Charles H. Huggins, chapter
chairman here, gave out the fol
lowing statement to rally the
community to support of the
goal:
"The Red Cross chapter wishes
to complete its fund campaign
this week. We need $2,616 more
to fulfill our budgetary require
ments and we are asking the
support of the community to
complete this goal.
"The additional cost to main
tain this county's share In the
new blood program and the nec
essary program to assist veter
ans and their families make it
Imperative that the chapter
have the budgetary minimum of
sm.uiju. The blood program
and the home service depart
ment are too important to the
community to be sacrificed."
Industrial Output
Dropped in March
Washington, April 27 W In
dustrial production dropped in
March for the fourth straight
month and the downswing is
continuing, the federal reserve
board reported today.
March output, on the board's
seasonally adjusted Index, fell
to 184 per cent of the 1935-39
average compared with 189 In
February and 101 in March,
1948. The peak was 195 In Oc
tober and November last year
Simultaneously, the board
said, prices of industrial com
modities dropped generally in
March and April, with sharp
reductions In metal scrap and
non-ferrous metals. Employ
ment in factories also showed
a "further marked reduction" in
March.
Four Towns; Three Paper
Mills Told to End Pollution
""'". Pi ' vn me
Kiven lour ciues ou days to submit specific schedules for financ
ing and construction of sewage disposal plants controlling stream
Three pulp and paper mills, one in Salem and two in Oregon
city, were also warned of court .
action unless they took definite
action to end pollution of the
Willamette river.
The cities are Albany, Shed
dan, Toledo and Oswego. A
fifth city. Myrtle Creek, was
cited to appear July 22 at the
next authority session, to an
swer pollution questions.
The three Industrial firms
named last night were the Ore
gon Pulp and Paper company,
tne publishers Paper company.
and the Crown Zcllerbach cor
poration.
Members of the authority indl-
cated they believe the cities have
shown good faith and are mak
ing progress In attempts to con
trol pollution of streams. Thcv
said they expect sewage disposal
proDiems to be solved by 1952.
This la the date fixed for com
pletion . of Portland's disoosal
plant.
Chairman Harold Wendcl
told a representative of the Ore
gon Pulp and Paper company,
that "the time Is rapidly 'ap-
proacning wnen we must make a
court test" of pollution laws.
This followed a statement by
Nils Teren, company agent, that
Predicts Third World
War If China Lost
To Commies
Shanghai, April 27 Wl Chi
ang Kai-Shek today returned to
the battle against communism
forecasting a third World War
if China is lost. His country,
he said, would be the tinderhpx
and furnish the men for that
war if the Chinese communists
win.
The generalissimo pledged to
share the hardships of his coun
trymen "on the brink of dis
aster." He said he could not
disregard his responsibility at
such a time.
The statement his first since
retiring from the presidency
January 21 was issued from
Chikow, his ancestral home
But foreign and Chinese news
papers said he was back in
Shanghai, soon perhaps to be
come another civil war battle
ground.
As Director General
He spoke as director general
of the Kuommtang (govern
ment) party.
Communist forces swirled
around Soochow (Wuhsien),
only 50 miles to the west, as
Chiang's statement was made
public.
Chiang said the communists
were seeking to "enslave the
Chinese people to the cause of
international communists by at
tempting to make all China the
military base and source of
manpower for the benefit of the
communist plan for world dom
ination." Chiang promised full support
to the government of Li, but
pledged to "share the sufferings
of my fellow countrymen." Thus
he may have chosen this means
of coming from retirement to
lead China in her battle against
communism.
Calls People to Fight
He called on his people to
fight as hard against commun
ism as they did against the Jap
anese in eight years of war. At
the same time he admitted some
of the shortcomings of his own
22-year rule of the vast coun
try.
The generalissimo said the
Reds by crossing the Yangtze
had blundered into the same
military errors that mired the
Japanese in their conquest of
unina.
The river crossing, he nid
represents the "peak of xcom-
munist military development.'
It will bring the Reds "face to
face with the tangling mass of
military, political and economic
problems which will eventually
result in tneir downfall."
Victory in Three Years
I am certain." he said, "that
so long as we carry on the strug
gle the communists can neithr
enslave nor destroy our coun
try. Within three years the
llnal victory will be ours."
He recalled that only four
years ago Nanking was liber
ated from the Japanese.
we are confronted." ai.l
Chiang, "by a dark, brutal force
which seeks to rob our DCODle
oi tneir liberty, destroy the in
dependence of our nation and
threaten the peace of the entire
world.
Vanport on Auction Block
Portland, April 27 VP) The
last vestige of what was once
the nation's largest housing proj
ect win go on the auction block
Saturday.
The few remaining buildings
of Vanport will be sold to the
highest bidder that day.
Uregon sanitary authority has
"I am sorry to say we haven't
any plans, or hardly any" for
pollution control.
Teren told the authority that
a magnesium b-Rse process being
tried at the Longvicw, Wash.,
plant of the Weyerhaeuser com
pany was still experimental and
"terribly expensive."
He said "we want to do our
share, but we haven't got the
answer." A spokesman for Pub
lishers Paper company took a si
milar position.
The sanitary authority said its
engineers report each mill causes
more pollution, measured by the
reduction of oxygen in the water,
than the city of Portland. They
report that In periods of low wa
ter In the Willamette, "there Is
no oxygen In the Willamette be
low Oregon City."
Frank Youngman of Crown
Zrllerbach said his company will
know with 30 days whether it Is
practical to burn paper mill
waste. He said if the studies are
promising, the company will
know whether It Is warranted
in building a pilot plant to cost
between $300,000 and $400,000.
He said the company believed it
is nearlng a solution.
New York, April 27 IP The
United States delivered a not
to the Russians here today ask
ing for a formal statement as to
when and on what conditions
they will lift their Berlin block
ade. The note was taken by Philip
C. Jessup, American ambassa-dor-at-large,
to Soviet deputy
foreign minister Jakob A. Malik.
Jessup called on Malik at the
Soviet offices on upper Park
avenue at 12:30 p.m. (8:30 a.m.
PST).
The text of the American
communication was not made
public, but Informed quarters
said its main purpose was to shift
the Berlin negotiations to a for
mal basis and get Russia's views
down on paper.
No Views Yet Exchanged
Previously no views had been
exchanged in writing since Jes
sup first brought up the ques
tion in an informal talk with
Malik at Lake Success Febru
ary 15.
Jessup brought the note with
him on his return to New York
this morning after talks In Wash
ington yesterday with President
Truman and state department
officials.
Before going alone to see Ma.
lik, Jessup met with members
of the U. S. delegation to the
UN at the American headquar
ters, z park Avenue. He disap
peared later and was under-
stood to have called on British
and French representatives to
show them the note.
Clarification Sought
The American note was un
derstood to seek clarification
specifically on two Issues: an
exact understanding as to what
would be involved in any agree
ment to lift the blockade and a
proposed timetable.
A U. S. spokesman said this
switch to a formal exchange
of notes probably would result
in some delay in getting Rus
sia s views. It was expected.
he said, that Malik would trans
mit the American note to his
immediate superior here, Dep
uty Foreign Minister Andrei A.
Gromyko, who in turn probab
ly would have to consult Mos
cow before replying.
Diplomats Shy
At Soviet Offer
Washington, April 27 Wl
Russia's proposal for lifting the
Berlin blockade is regarded
warily by top American officials.
Caution is obvious even though
the state department has Inform
ally accepted it as clearing the
way for ending that particular
battle in the cold war.
Some responsible authorities
see the Soviet move as being
designed to disrupt the fast mov
ing development of western
Germany as a separate state.
And even those diplomats who
hope for an early end to the
blockade see little prospect for
real east-west agreement on all
Germany in the follow-up meet
ing of the big four foreign min
isters. Officials said that the lifting
of the restrictions on commerce
and travel between Berlin and
the western zones, tinder the
terms which Moscow announced
yesterday, would be a substan
tial gain for world peace. The
western airlift would no longer
be necessary and the tensions
growing out of the struggle for
Berlin would disappear.
But according to the Russian
proposition the restoration of
normal communications with
Berlin would automatically re
quire a meeting of the council
of foreign ministers and this
would bring back to the con
ference table the whole rango
of Issues on which Russia and
the western powers deadlocked
in the 1947 foreign ministers'
conferences In Moscow and Lon
don. Chinese Reds
Seize Putting
Shanghai, April 27 (IP) Red
guerrillas In a surprise coup to
day seized Putung. right across
the Whangpoo river from Shang
hai. At the same time nationalist
troops abandoned Soochow
(Wuhsien), guardian city for
Shanghai SO miles to the west.
(Red possession of Putung in
any strength could make all
operations on the Whangpoo, in
cluding evacuation of foreign
ers, hazardous.
(Right across from Pulung
Point are the Chinese city coun
cil house, and the British and
American consulates. The
Whangpoo Is less than one-
fourth of a mile wide there.)
4L -4k.