Oregon Phone Rate Increase Effective June 1 Flagg Grants $3,563, 892 Additional Rtvcnue to Company G apital Aouniaj Big 4 Powers Likely to Settle Shanghai Quiet Under Red Rule After Long Siege Complex Problems Al ready Felt Currency Troubles Halt Trade 'Berlin Strike 61st Year, No. 127 Salem, Oregon, Saturday, May 28, 1949 .ice sc P.ice 5c Increased telephone rates In Orecon totaling $3,563,892 an nually mi granted to the Pa eifie Telephone and Telegraph company In an order Issued Sat' urday by George H. Flagg, pub lie utilities commissioner. The new rates become effective on June 1. The company had requested rate boosts yielding-$5,496,000 annually. For residence service in the Salem area the Increases grant ed were: one-party line, 75 cents a month: two-party line, 50 cents; four party line, 25 cents. There is no change in the farmer line rate. This boost will bring the monthly residence rates in Sa "lem: one-party, $4.75; two-par-C(y, 3.75 and four-party, $3.50 Business Rate Increase Business phone rates will be generally increased by $1 a month for individual line sta tions, except for Portland where the rates will be boosted by $2 a month. In addition extensions to business phones will be in creased by 25 cents a month. In the Dallas, Independence and Monmouth areas -the resi dence telephone increases will be: one-party line $4; two-party line, $3.25 and four-party line, $2.75. Commenting on the order Commissioner Flagg stated that "the increases granted are as low as will meet the requirements of the Oregon law and provide a reasonable return to the compa ny." ' Extensive Investigation He said that the case had re ceived the most extensive study and investigation of any rate case in the history of the com mission. 'The public pays a terrible penalty today whenever it is ne cessary to increase rates such as these," Flagg said. "In this case the Increase will bring about a levy of federal income tax to the company amounting to $1,354, 278, leaving the company $2, 209,014 of the increased rate re venue. In addition the company faces an additional federal excise tax amounting to $597,873. Service Charges Out In addition to the granting of increased rates, Commissioner Flagg maintained his position canceling all payments by the Pacific company to the American Telephone and Telegraph com pany, on a license contract for services. Breaking down the total in crease granted, Flagg pointed out that the exchange rates are es timated to produce $1,397,000 annually to the company Other Increases granted were service connections, installations, and move changes, $316,000; exten sion stations, $94,000; message telegraph, $4000; regrouping due to growth, $117,000, long dis tance tolls, $1,270,000 and mis cellaneous, $365,355. $5000lrom PGE To Hospital Fund A subscription of $5000, rep resenting $50 for every employe of this community, has been made by the Portland General Electric company to the Salem Hospital Development program, according to announcement by James Walton. This brings the total subscriptions by the Wal ton committee up to $86,300. Units selected in the new building since the last report include: Doctors room on the first floor by Gov. and Mrs. Douglas McKay, as memorial to their son, Douglas, Jr.; council room on the first floor by Mrs. Otto J. Wilson, Sr., Otto J. Wilson and Kenneth Wilson In honor of the late Otto J. Wilson, Sr. flower room on the surgical pa tient floor by Miss Elizabeth Lord, in memory of her mother, Juliett Montague Lord. ' At Salem Memorial: Doctors scrub-up room by Al Loucks, and sterilizing room in the ob stetrical department by Douglas McKay Chevrolet company. $389,023 Building Permits in May Building permits issued dur ing the month of May In Salem totalled $389,023. Among the larger buildings for which permits were issued included an apartment house to be constructed by John Steen block at 1175 Court street for $70,000; a concrete store build ing in the Center street shopping center for $60,000 and an apart ment building at 144 South 13th lor 120,000. April was the banner month for building permits during the 1 1 rm t J ... .1 .u. ..... wnen the total value of the per nita was $1,271,734.69. Ford Strike End HingesonChoice Of Arbitrator Detroit, May 21 u. Thir teen hours of continuous all night peace talks left the near ly 24-day old Ford strike still unsettled today. Negotiations called off the long session at 9:25 a. m. (EST) and set another for 8 p. m. (EST) tonight. Two issues choice of an ar bitrator to settle the dispute ov er manpower on assembly lines, and the disciplining of 35 Ford workers after the strike began held up an expected settle ment. Federal Mediator Arthur Viat, who only last night expressed great optimism, was downcast at the turn of events. "The situation looks hopeless at this time, but maybe there will be a change by tonight," he said. Both Sides Exhausted Exhausted negotiators for both sides left the conference room with word that the choice of an arbiter was the main source of the deadlock. This man, presumably an outside ex pert, would weigh the issues f the Ford "speedup" dispute and reach a verdict John S. Bugas, the chief Ford negotiator, said the company still was standing firm on its demands that the arbiter be an industrial engineer. He said the company had pro posed that both Ford and the striking ClO-United Auto Work ers work for 72 hours to pick a third party to settle the dispute. Strikers Reject Proposal Then, if still in a deadlock, both sides would submit a list of engineering firms to Dr. Harry Shulman, labor umpire between Ford and the union. Shulman would select the arbiter. The auto workers turned this town. In reply, UAW President Wal ter Reuther proposed that the strike be ended immediately. with an arbiter to be selected within the next 72 hours. If one could not be selected by -then. one of three men would choose him. These men, the union pro posed, would be President Tru man, Michigan's Governor G. Mennen Williams or Cyrus Ching, director of the federal mediation service. On the matter of discipling of the workers, both sides were ap parently adament. Ford refus ed to take back its action in fir ing 21 of them and suspending 14 more. The union demanded that Ford rescind the action. Nevertheless, hopes were still high that the crippling strike which has idled 106,000 Ford workers soon will be over. To night's session was expected to be devoted towards working on the knotty problems. Truman Cruises During Week-end Washington, May 28 (IPI President Truman is cruising to day aboard the presidential yacht Williamsburg. Mr. Truman with a party in eluding Fleet Adm. William D. Leahy, his former chief of staff, left yesterday for a week-end trip along the Potomac river and up Chesapeake bay. The president expects .to at tend religious services at the U. S. naval academy in Annapolis tomorrow. He will be represent ed at Memorial day services here Monday by military aides. 15 Year Old Dionne Quints Unspoiled Little Girls Callander, Ont, May 28 () years old today intelligent, unspoiled little girls. They plan a happy family celebration with their parents, Oliva and Elvira Dionne, and the other they plan a party in honor of their father. The girls, Annette, Emile. Yvonne, Cecile and Marie, still are disinterested in dates and fine clothing. None of them uses powder, rouge or other make- "That will come soon enough," says Sister Aimee Des Anges. head of their school. "We want them to stay little girls as long as they can." They dress alike usually In dark blue jumpers with bright blouses and are so amazingly similar In appearance that few can tell them apart, except for Marie. She wears glasses. The girls go to school in the reconverted nursery built with money from movie, photo and magazine earnings, and royal ties. Although the school is on the Dionnes' property and they pay the bills, ten othei neighborhood -iris of similsr age also attend it. The quint ari In the first Senate Interest In CVA Hearings Held Unusual Washington, May 28 (A1) Un usual interest being shown In the pending Columbia Valley administration bill by members of the senate public works com mittee has been noted by Chair man Chaves (D.-N.M.). Seven members of the 13 on the committee were present when testimony started yester day. Chavez commented that it was seldom he had seen mem bers show so much interest in a measure that seven were pres ent when a hearing opened. And, during the five hours devoted to testimony others showed up, so that most 6f the 13 heard some of the discussion. Senator Magnuson (D-Wash.), senate sponsor of the Truman- backed bill which also was in troduced by Senator Cain (R Wash.), made the first state ment for the bill. General Pick Witness He was followed by Maj. Gel. Lewis A. Pick, chief ot army engineers, who outlined me comprehensive plan of the en gineers for development ot the aasin. In reply to a question. Gen eral Pick said he dil ot see how enactment o the CVA bill wo'tUt speed construction of (.roj.cts plani-d oy his agn- y but at v otn'.r point said that in his official position he felt obligated to support the president's program. After hearing Magnuson and General Pick, the committee re cessed over the Memorial day weekend until Tuesday. Recla mation Commissioner Mitchel W. Straus is to testify then. Sees CVA Improvement Magnuson was closely ques- tioned by the committee mem bers as to need for the CVA and whether it would be any im provement over the work now being done by the engineers and the reclamation bureau. (Concluded an Pass ft. Column 7) Russia Wins On Airways New York, May 28 (JPl The Voice of America admits the Russians have regained the up per hand in the growing battle of the airways. A voice spokesman said last night that American broadcasts to Russia virtually have been drowned out by a record 205 So viet jamming stations. "We are getting through only for brief and scattered periods," the voice spokesman said. Working with the British Broadcasting Corp.. the voice has only 61 stations with which to beam American information to Soviet listeners. The Russians are using as many as seven or eight jamming transmitters against a single voice station, he added. Jamming first was stepped up by Russia last April 24 until it virtually blanketed the voice broadcasts under a cloak of con fusing noise. The voice threw more trans mitters into the contest and be gan broadcasting around the clock. This worked for a while until Russia stepped up her jamming operations again, The spokesman said the voice broadcasts have been trimmed to bare news essentials of major importance so that Russian lis teners who do pick up the voice briefly will be interested enough to listen. The Dionne quintuplets are 15 children of the family. Sunday year of high school now and study from 8:30 a.m. to 4 p.m. under the supervision of nuns, Instruction is In French their parents' native tongue. The girls understand English but speak It with difficulty. I After school they rush home to the big house and help their mother with the cooking, clean ing and caring for baby brother, Claude, just two years old. In the basement they have a rumpus room which is the cen ter of neighborhood play. One end of the room can be turned into a stage by drawing curtains. There the youngsters put on plays and amateur con certs. None of the girls has yet chosen career. Their parents insist they will choose for them selves. There have been reports that one or more of them may inter Roman Catholia eonvent. v,v7r v!"v IW ii i r - - LX - ' jgSTf.. i t. Kita and Aly Married Seated around table in City hall, Vallauris, near Cannes, France, during ceremony uniting in marriage Brooklyn-born screen actress Rita Hayworth and Prince Aly Khan are (left to right) Prince Aly, Rita, the Aga Khan, Aly's father (white suit). Man standing right, fore ground, is unidentified. (AP Wirephoto via radio from Paris) Moslem Wedding Looms For Rita and Aly Khan Cannes, France, May 28 W) Two Moslem imams (priests) ar rived today from Paris to perform Moslem marriage rites for Rita Hayworth and Prince Aly Khan who were married in civil rites yesterday at nearby Vallauris. Just when the Moslem ceremony will take place remains a ques- tion. Yesterday Rita and Aly Confesses to Torso Murder Klamath Falls, May 28 (JPl Sheriff Jack Franey announced this morning that William H. Rice, Klamath Falls cement con tractor, is held in the county jail on first degree murder charges growing out of the dis covery of the dismembered tor so of a woman in Klamath river yesterday. Sheriff Franey said that Rice came voluntarily into his office this morning and confessed that he had killed Mrs. Eire and disposed of the body in the river. On advice of his attorney, the contractor refused to divulge further information, the Sher iff said. Franey immediately filed the first degree murder charges and lodged Rice in jail without bail. Sheriff Franey said Rice told him that the woman's head, arms and legs were disposed of in the river along with the trunk which was found yesterday neat ly packaged and floating among tules near the Klamath river bridge five miles southwest of town on US 97. The sheriff or dered further search of the river area this morning. City police revealed they had been investigating reports from neighbors about the alleged dis appearance of Mrs. Rice from the family home at 304 South Rogers street, Klamath Falls. and the case immediately came up for further sifting when the dismembered body was found in the river yesterday by M. C Cook. Cook's boat nosed into the grisly bundle when he wss sal vaging log butts from the river to use for firewood. 16 Cars Derailed In Missouri Wreck ' Strasburg, Mo., May 28 u.n Sixteen cars of a Missouri Pa cific freight train, eastbound from Kansas City to St. Louis, were derailed one mile east of here late last night. A. K. Boyce, chief dispatcher at Jefferson City, said there were no injuries. According to the highway patrol, railroad authorities said the accident was caused by a dropped draw bar. The train was the first 'sec tion of No. TO and officials said only quick thinking by William Robert Green, operator at Pleasant Hill, Mo., prevented the second section from plowing into the wreckage. THE WEATHER (Released by United States Weather Bureau) Forecast lor Salem and Vicin ity: Mostly cloudy with occa sional rain tonls'ht, becoming partly cloudy with scattered showers Sunday. Little change In temperature. Lowest tempera ture expected tonight, 50 de grees : highest Sunday, 70. Con ditions will be mostly favorable for farm work. Sunday. Maxi mum yesterday 72. Minimum to day SO. Mean temperature yea terday M which was 1 above normal. Total 24-hour precipita tion to 11:30 am. today 06 of an Inch. Total precipitation for the month 3 12 Inches which la .3s of an Inch above normal Willamette river helsht at Sa lem Saturday morning. 1.1 feet. were talking about having the Moslem rites in Paris. Si Kaddour Ben Ghabrit, head of the Moslem church in France, said in Paris: "A Moslem marriage is a very simple ceremony. It only means that the husband must declare the amount of dowry he Is giving his wife. Then the marriage is registered in the Moslem rec ords. The newlyweds were in seclu sion today at their luxurious Chateau de L'Horizon. Gone were the gay, beautiful ly dressed guests who yesterday toasted their wedding in cham pagne (the prince provided 15 bottles- per guest), J strolled around the scented swimming pool and tasted caviar and other delicacies. Intimate friends of the couple lingered Into the early hours of the morning on the brightly lit terraces overlooking the blue Mediterranean. The prince and princess said they would still be at the cha teau late this afternoon, but be yond that their plans are their own secret. Where will they spend their honeymoon? Well, Rita giggled yesterday, it will involve some traveling. Aly chimed in to say that he hoped to attend the English der by at Epsom Downs June 4 and "I'm sure my wife will come with me." The prince Is heir to the spirit ual leadership of the Ismaili Moslems now held by his fa ther, the Aga Khan. Rita was born a Roman Cath olic. If she still considers her self one, a Vatican source said yesterday, the Moslem marriage service would automatically ex communicate her Barneft Memorial Cottage Dedication Dedication of the Barnett Memorial Cottage at the Turner Memorial home will be held Sunday afternoon at t o'clock under the direction of Dean Schomaker, chairman of the board of trustees of the home, with C. F. Swander, Portland, giving the main address. Taking part in the program will be Rev. Gilbert Carey, pas tor of the Turner Christian church; Rev. Elery Parrish, pas tor of the Liberty Church of Christ; Rev. Clyde Freeman, pastor of the Stayton Church of Christ and J. E. Gllstrap, super intendent of the home. Rev. W F. Morse, pastor of the Amity Church of Christ, will give the dedication response. Singing will be lead by Robert Hender ihot. The new cottsge is one of six on the 17-acre tract. The collate has been erected by Dona Bar nett and Mrs. Trannie B. Parker. Lexington, in memory of their parenta, Mr. and Mrs. William F. Barnett. 1 Margaret In Paris Paris, May 28 IIP' Princess Margaret arrived in Paris today on her return from her holiday in Italy and Switzerland. She was met at tht Gare de Lyon by the British ambassador, Sir Oliver Hardy, and the Canadian ambassador, Maj. Gen. George P .Vanier. A crowd of Parisians also turned out to welcome her at tht railway station. jCff Bridges Freed On $5000 Bail San Francisco, May 28 (Pi Harry Bridges, stormy labor leader charged with perjury and fraud in connection with h I a citizenship hearing, says the in dictment is an administration 'smoke screen." The Australian-born Bridges, naturalized in 1945, posted bail of $5,000 yesterday. Trial was set for June 9. Federal Judge Louis Goodman refused to in crease bail to $20,000 nor would he release Bridges on his own recognizance. Bridges, head of the CIO Long shoremen's union, twice defeat ed government efforts to de port him, in 1939 and 1941. Wednesday, he and two top aides, J. R. Robertson and Henry Schmidt, were indicted in con nection with his naturalization here in 1945. Bridges was ac cused of swearing falsely that he was not a communist. He ocnmiat ana Robertson were accused of conspiring to defraud the government. Schmidt and Robertson also posted $5,000 bail each. Bridges said "this is the re sult of at least certain elements in the administration connected with and surrounding the pres ident to silence any criticism of the administration." Lilienthal Gives Atomic Data Washington, May 28 (U) Congressional sources said today that Avid E. Lilienthal has giv en congress important data con cerning security of the atomic program while it was under mil itary control. They said Lilienthal, chair man of the atomic energy com mission, turned a document over to the joint congressional atom ic energy committee two duys ago. But Chairman Brien Mc- Mahon, D, Conn., so far has refused to make it public. McMahon explained that the document has not been read to other committee members and, therefore, is not part of the rec ord of the committee's investi gation into .charges by Senator Bourke B. Hickenlooper, R. Ia., that Lilienthal has mismanaged the entire atomic energy pro gram. Lilienthal has bepn trying to get the committee to judge his administration by comparing it with the way the army handled the atomic program before his civilian commission took over in 947. Program of Peace to Feature Memorial Day far iht AjuMiitttl Prfwii The nation will observe Its 81st annual Memorial Day Monday with prayers for enduring peace and homage for its hero dead who fell on the field of battle. All across the land in Hallowed Arlington cemetery, in tree- shaded country churchyards Americans will gather to pay their solemn tribute to those who died in their country's cause. Only through "divine guid ance" can the world avert an other war, President Truman said in a proclamation calling for his countrymen to observe Memorial day with a nation wide prayer for peace. 'This sacred day," Mr. Tru man ssid, "is a fitting occasion on which the people of our na tion, all of whom, directly or indirectly, have been bereft by war's terrible toll, may appeal to Almighty God for help In turning the steps of the world to the paths of permanent peace." The graves of the dead will boom afresh In thousands of cemeteries throughout the coun try. Wreaths will be placed on the tombs of the Unknown Soldier in Paris, London and In Ailing High Policy Questions Prevent Local Settlement Berlin, Mar 28 (Pi American spokesmen said today Berlin's paralysing railway strike, which I has become involved In the cold war, may have to be settled at ' higher government levels by the four powers. "If there is no settlement In the next few days, it may have to go up to the government lev el," said James W. Riddleberger. the U.S. state department's chief adviser in Germany. "The Paris conference can, of course, step in any time and take action." Another Try Today He added that "another try" for a settlement is being made here. C A Div American transnnrt expert, said so many questions of picture that neither the Russian nor western officials here can take a positive stand. The Rus- s I a n s especially "bump up against their higher policy all the time," Dix asserted. The people of Berlin, pinched by the week-old strike and rec ognizing its place in cold war maneuvering, are getting block ade jitters. Called by west Berlin anti communist railway workers against their Russian bosses, the strike has been described by the western allies as justified. (Concluded on Pase 5, Column 81 Allies Propose German Rule Paris, May 28 (iPi The west ern powers today proposed es tablishment of a federal govern ment for all Germany, includ ing the Soviet occupation zone, based on the Bonn constitution That document, now the basic law for west Germany, contains democratic guarantees similar to those of the American and Britl ish systems of government. The United States, Britain and France also called for the end ing of military government by the enactment of a four-power occupation statute or tempo rary peace treaty. Soviet Foreign Minister An drel Y. Vishinsky received the western proposals at the sixth meeting of the Big Four foreign ministers' conference. American sources quoted Vi shinsky as saying the western plan looked like a "fait accom pli" by the three western pow ers and was one sided. He in dicated it would be "unaccept able" to the Russians but said he would study It and take It up at the Monday meeting of the ministers. Early this week the two German communist del egates to the convention which drafted the Bonn constitution refused to sign it. Under the western plan, Rus sia was Invited to link the east ern zone of Germany with the federal republican arrangements evolved at Bonn. The Bonn con stitution has been approved for the 45,000,000 Germans living in western Germany. Residents of eastern Germany number less than half that many. Meridian Dam Contract Portland, May 28 (IPI A $837,295 contract to relocate 2.5 miles of the Southern Pacific railroad and 2.5 miles of slate highway No. 58 was awarded by the army engineers today to Utah Construction Co., San Francisco. The relocation work Is necessary for construction of Meridian dam on the middle fork of the Willamette river. Observance iton National cemetery. Sen Millard Tydlngs (M., Md ), chairman of the senate armr-d services committee, will deliver the Memorial address at the Arlington shrine. Before the ceremonies at Arl ington, a floral anchor will be cast Into the Potomac river In tribute to the dead of the navy and the marine corps. Across the nation, at San Diego, Calif a floral cross will be dropped Into the waters of the Pacific Impressive Memorial day services were planned for the Cathedral of the Pines in Rindgr. N. H., famed outdoor shrine to all the American dead of the last war. At Ipswich In Essex county Mass., the battle flag of the air craft carrier Essex extolled h its crew as the "fightingrst shli In the navy" will be present ed to the town. Shanghai, May 28 (Pi This largest city under Chinese corn munist rule was returning to nor- mat today after the long siege and disruption of its economic life. But the complex problems at tendant to the running of a me tropolis of 8,000,000 persons al ready were beginning to be felt. Communist officials have not set the rates for their new cur rency, the jen min piao. Consequently, merchants who are rapidly reopening their pla ces of business won't take the old nationalist currency, which was floated In great volume be fore the communists took the ci ty. Red Money In Use The open money market was dealing already in communist money along with Chinese silver dollars and U.S. currency. These three are all merchants will ac cept. The Nanking-Shanghai rail road is ready to resume regular service. Newspapers say, howev er, that there is only a 10-day supply of coal. Railway service between Shanghai and Nanking was get ting back to normal. The first train to Nanking departed late today after two officers arrived to head the railway department of the communist military con trol council. , Newspapers said the Shang-hal-Nanking line has only a 10 day supply of coal. Shipping Problem Another problem is shipping, without which Shanghai cannot live. Foreign and Chinese shipping lines were trying to contact the proper communist authorities to negotiate resumption of service. Foreign air line officials here were doing the same thing. A spokesman for American President lines said it would like to bring ships in as soon as pos sible. No more American aid will come into Shanghai under the economic cooperation adminis tration program, announced George St. Louis, EC A director here. The Shanghai Power company has fuel oil for only 18 days. For the past several months Its oil supplies have been paid for with ECA foreign exchange. The Red regime will face a critical situation unless more oil can be procured speedily. British Curfew In Hong Kong Hong Kong. May 28 U.R Bri tish administrators of Hong Kong imposed an eight-hour curfew on movement along the crown colony's borders today as the communist tide in China rolled closer. At the same time the first naval reinforcements, the light cruiser Jamaica, steamed into Ihe harbor here from the West Indies. The Jamaica, under Capt. F. A. Ballance, brought cruiser strength on the far east station to three ships, including the London and Belfast. Other reinforcements which have arrived recently Include a squadron of Spitfire fighters, several bombers and several hundred royal engineers. The curfew will be effective June 1 along the Chinese-Bri tish border and the waterways in which the border terminates. An announcement said violators would be fired upon if necessary. All overland and water move ments are prohibited by tht cur few between the hours of 10 p. m. and 6 a. m. for a depth of about two miles along the 15- mile border and also in Deep Bay and Mirs Bay. Oregon Planes Land At Portland, Maine Portland, Me , May 28 M.P! Sixty-seven light planes, scat tered by bad weather, began draggling into landings at the) Municipal airport today to end a Portland. Ore., to Portland, Me., goodwill hop. The planes were forced down at half a dozen points last night becaurt of rain. Most of the pilots were ex pected here in time for a clam bake and a ceremony in which Pilot Ed Parsons of Astoria, Ore., planned to empty a bottle, -nntainlng water from the Pa--iflc ocean Into the Atlantic. The seven-day tour followed he route of the Old Oregon Trail In reverse. The flight tarted nut with 53 planes but picked up 14 others en routt.