River Course
Will Change in
Ninety Days
Caravan Parry Told
Santiam Will Shift to
Diversion Tunnel
By JAMES D. OLSON
Within 90 days the portion of
the North Santiam river at the
Detroit dam site will be shunt
ed from its normal course into a
1400-foot diversion tunnel to
provide a dry river bed for dam
construction work.
The 25-foot tunnel, . to be
drilled through solid rock by the
Consolidated Builders, Inc., dam
contractors, has already been
started and will be rushed to
completion.
Members of a 35-car caravan
headed by army engineers and
members of the Willamette Val
ley basin commission, were am
azed at the progress made in the
preliminary work for the huge
Detroit dam.
A huge marshalling yard has
been set up and on which ma-
cnine snops ana oxuces xor inc
contractor will be erected, and
heavy machinery will be operat
ed during the dam construction
period. This yard is located just
below the damsite. , i
Clearing for Towers
About three miles below the
Detroit dam the army engineers
plan Big Cliff dam to serve as a
regulating dam to care for high
surges of water and control the
water flow. At this dam pow
er will be generated on a 24-
hour basis while at Detroit the
power generation will be i
stricted to the peak hours.
Clearing is rapidly being
completed for the 105 steel trans
mission wire towers being erect
ed by the Bonneville Power ad
ministration. These lines will
bring power into the dam for op
eration of the machines needed
by the contractors in their work
and after the dams have been
completed will carry the gener
ated power back into the north
west power pool.
(Concluded on Page 5, Column I)
Straus Protests
Slash in Funds
Washington, June IS VP) Re
clamation Commissioner Mich
ael Straus said today that a 15
percent cut made by the house in
reclamation funds "could very
well lead to shutdowns" on some
projects.
The cut made by the house on
budget recommendations for re
clamation construction from
$350,459,455 to $296,530,537
was done in the theory that
costs will drop 15 percent with
in the year beginning July 1.
The house appropriations com
mittee said it this decrease does
not occur the reclamation bu
reau may come back for more
money later.
Straus told a senate appropri
ations subcommittee that even if
hopes for a decline in costs are
realized, "only a small part of
our program could possibly be
nefit by these hoped-for drops.'
"That makes it a mathemati
cal certainty today that funds
beyond those now in this bill
will be required during the com
ing fiscal year to execute the
house approved program," he
added.
Cherry Picking in
Orchards Under
Way
Seasonal labor appears to be
In sufficient supply to fill the
demands of the growers of cher
ries and strawberries, reports W.
H. Baillie, manager of the Salem
officer of the state employment
service Monday. A total of
growers appeared at the office
during the morning and depart
ed with loads of cherry and
strawberry pickers.
Cherries will come off the
trees In Increasing volume dur
ing the next few days. However,
the strawberry harvest is on the
wane and picking, even In the
higher elevations will be over
for commercial purposes within
another 10 days.
Maria Giuseppa
Raised fo Sainthood
Vatican City, June 13 UPh
Pope Pius XII has raised to
sainthood the blessed Maria
Giuseppa Rossello, who found
ed the Order of the Daughters
of Our Lady of Mercy.
Saint Maria Giuseppa, who
was born In 1811 at Albissola
on the Italian Riviera, died in
1800. The order she founded
cared for wayward or aban
doned girls and trained them in
the care of the sick or poor.
The order now has 283 homes,
167 in Italy, 86 In Latin Ameri
ca and 10 in the United States.
v There are 3,000 sisters In the or-
r der.
61st Year, No. 140
Standard Oil
Held Violator
Anti-Trust Law
Washington, June 13 VP) The
supreme court today decided the
Standard Oil company of Cali
fornia violated anti-trust laws
by contracting with indepen
dent gasoline dealers to buy all
their fuel from Standard.
The decision was handed down
on a Standard Oil appeal which
said that to hold the company
guilty of violating the anti-trust
statues would have "immeasur
ably disastrous" effects on busi
ness practices.
Justice Frankfurter delivered
the 5-4 decision.
4 Judges Dissent
Justice Jackson wrote a dis
sent in which Chief Justice Vin
son and Justice Burton joined
Justice Douglas wrote a dissent
Joining Frankfurter on the
majority side were Justices
Black,-Reed, Murphy, and Rut-
ledge.
The majority opinion declar
ed that Standard Oil's contract
had the effect of lessening com
petition in both interstate and
intrastate commerce.
But Douglas in a stinging dis
sent asserted that the court's
elimination of the Standard Oil
contracts system "sets the stage
for Standard and other oil com
panies to build service-station
empires of their own."
Also Advisory Opinion
"The opinion of the court,"
Douglas added, "does more than
set the stage for that develop
ment. "It is an advisory opinion as
well, stating to the oil compan
ies how they can with impunity
build their empires."
Douglas said he interprets the
majority opinion as suggesting
a formula for "use of the
'agency' device." That, in prac
tical effects, Douglas said,
"means acquisition of filling
stations by subsidiary corpora
tions of the oil company."
Douglas continued:
"Today there is vigorous com
petition between the oil com
panies for the market. That com
petition has left some room for
the survival of the independents.
But when this inducement for
their survival is taken away,
we can expect that the oil com
panies will move in to supplant
them with their own stations.
Donglaa Decision
"There will still he competi
tion between the oil companies.
But, there will be a tragic loss
to the nation. The small, inde
pendent business man will be
supplanted by clerks.
'The requirements contract
which is displaced itiy today's
decision) is relatively innocous
as compared with the virulant
growth of monopoly power which
the court encourages.
"The court does not act un
wittingly. It constantly pushes
the oil company In that direc
tion. The court approves what
the anti-trust laws were design
ed to prevent. It helps remake
America in the image of the
cartel."
State Grange at Coos Bay
Coos Bay, June 13 VPI The
Oregon state Grange opened its
76th annual convention here to
day with more than 700 farmers
from throughout the state In the
halls.
Lewis and Big
As Coal Miners
Philadelphia, June 13 VP) John L. Lewis and V.S. Steel Corp.
off icials- went into a contract talking session today as the nation's
480,000 coal miners quit work in a week-long walkout.
Lewis ordered his United Mine Workers out of the pits to
"stabilize" the industry. He said the coal supply row far exceeds
it. j t tt,
" 7, ,
inc niecuuas, uauai, "tit
closed. There was no advance
announcement of what' Lewis
will seek for his miners.
But It Is considered likely he
will ask for a "share-the-work"
program under which miners
would receive the same pay and
work whether coal demand is
heavy or light.
Many mines have been work
ing only part time recently be
cause of the large supply of coal
on hand.
Today's meeting with without
precedent The U. S. Steel nev
er before has met with Lewis
while a walkout was In prog
ress. Present for the union were
Lewis, Executive Vice President
Thomas Kennedy and District
Presidents William Mitch (20) of
Bermingham, Ala.; John Busar
ello (5) of Pittsburgh and Wil
liam Hynes (4) of Uniontown,
Pa.
G apital A Journal
loured u Mco&d Ujj
auuur At aalam, Or mod
Atomic Energy
Chief Scientists
Endorse Board
Washington, June 13 (IP)
Nine scientists who advise the
Atomic Energy commission sent
congress a statement today say
ing the AEC has developed "a
sound and forward looking pro
gram." They called the progress "clear
proof of the competency of the
devotion to duty of the commis
sion."
Dr. J. Robert Oppenheimer,
who helped develop the atomic
bomb, read the statement to the
congressional committee investi
gating the AEC's management.
He said it was adopted unani
mously by the nine-member
AEC scientific advisory commit
tee. Oppenheimer Satisfied
Oppenheimer is chairman of
the advisory committee. The
statement said that when the ci
vilian committee took over the
atomic project from the army in
1946 the "future of the whole de
velopment was uncertain and
production of A-bombs was
"nearly stagnant."
Under questioning, Oppenhei
mer said he is "very much sat
isfied" with what the AEC has
done except for one thing
"I think the commission can
go further toward making infor
mation public which is now se
cret."
For himself, Oppenheimer
warmly defended the policy of
exporting certain type of radio
active isotopes for research.
In response to questions, he
said he knows of no way that
Russia would be helped in the
atomic energy race if the So
viets should get hold of some of
the isotopes.
(Concluded on Page 5, Column 6)
Brannan Urges
New Farm Plan
Des Moines, June 13 W) Sec
retary of Agriculture Charles
F. Brannan called today for
public support of Truman ad
ministration farm policies to
help prevent the "greatest eco
nomic crash in history."
America's farm productive
power, he said, is like atomic
energy it can be used for eith
er good or bad.
. But the nation need not fear
this power, the cabinet officer
said, if it supports the demo
cratic party. . That party, he
added, has been the only one in
history to support "effective
farm programs" aimed at serv
ing the whole country.
Brannan made this bid for
continued support of his party
in speech prepared for a two
day midwestern democratic con
ference to lay plans for 1950
congressional campaigns in a
16-state farm belt area that con
tributed heavily to Mr. Tru
man's victory last year.
He offered a new farm plan
advanced by himself before con
gress recently as the best means
proposed yet for preventing a
"farm-fed and farm-led" de
presion which, he added, could
destroy democracy.
The secretary described as
"inadequate" the so-called
Aiken long-range farm law
passed by the republican 80th
congress and scheduled to go
into effect in 1950. He said it
would not offer enough income
protection to prevent I farm de
pression. Steel Confer
Quit Work
I For U. S. Steel were Harry
Moses, president of the H. C
Frick Coke Co., a U. S. Steel
subsidiary; Vice President
George Thursby of the same
company; Industrial Relations
Manager Thomas Mullan of
Frick; Walter H. Steel, industri
a relations manager for the U.
S. Coal & Coke Co., and Wil
liam Foster, Frick'i general at
torney. The negotiators gave photog
raphers only one minute to take
pictures. Moses smiled broadly.
Lewis scowled.
As usual, all UMW diggers quit
the pits today in compliance with
Lewis' orders. Idle were about
400,000 soft coal miners and
some 80.000 hard coal workers in
eastern Pennsylvania.
One anthracite district lead
er, Michael Kosik, said the one
week "holiday" is "Just what the
industry needed."
Hard coal retail dealers said
they were flooded with orders
and that plenty of fuel is avail
able to meet all demands.
Salem, Oregon, Monday, June
0-600
fee - nr"" - i i i i i H ii i nfl"
Construction Advances at Detroit Dam Tour of Willam
ette valley dam projects reveals expanding construction at
Detroit dam site where bulldozers and power shovels are
now reducing barriers preliminary to dam building. Top:
Bridge for construction purposes spans the Santiam at the
damsite allowing passage of machinery to the south bank
where a diversion tunnel is now being excavated for carry
ing the river during dam construction. Lower: Machinery as
sembled for usage in dam building is marshaled in this yard
below the construction area.
City Firemen's Pensions
Held Cheapest by Roble
Fire Chief William P. Roble Monday answered those who
claim it would be cheaper for the
retirement fund rather than keep the present city fund.
Citine sDecific figures on the 55 firemen, Roble showed the
present annual city contribution
$21,548.85. He pointed to anoth
er column, basing contributions
the city would have to make to
put the department under the
state system. Using the state
rates, he found the city's contri
bution would jump to $27,-
260.70.
This showed the present re
tirement plan for firemen was
cheaper by $5711.85 than it
would be under the state plan,
Roble said. ,
This higher figure for the
state plan is explained, he add
ed, by the 19 men in the depart
ment whose 20 years of prior
service would have to be cov
ered in contributions to the
state fund. There is a monthly
payment to the state fund of
$2.50 per man for each of his
previous years of service.
The fire chief's remarks were
prompted by recent discussions
of the city budget committee on
relative costs of the city s con
tributions for the firemen under
their own plan and the police
men under the state plan. The
"budget committee meets Mon
day night.
The chief's figures showed
these requirements to meet the
outlines of the state fund:
$994.98 monthly, plus $1278.75
for members' prior service. This
totals $2273.73 for a monthly
contribution on the city's part,
as compared with the present
monthly contribution of
$1796.19 under the firemen's
own system.
Salem has contributed for
four years into the fund set up
for the firemen, while the men
themselves have contributed for
five years into the fund, Roble
said. Of the 19 men with at least
20 years of prior service, only
three would be eligible for re
tirement in July, he added.
Belgian Troops Seized
Bergkamen Plant
Duesseldorf, Germany, June
13 VP) Belgian troops with ar
mored cars and machine guns to
day seized a synthetic oil works!
at Bergkamen, where German
workers had defied British at
tempts to dismantle the plant.
With four armored cars, the
troops battered down a barricade
of light vehicles which the Ger
man had thrown across the road
to the Chemlschewerkt Essener
Stinkohlt plant.
13, 1949 (18 Pages)
firemen to switch to the state
to the firemen's own fund as
Million Dollar
Salaries Out
Washington, June 13 VP) It's
commencing to look like earn
ing a million dollars a year
much less keeping that much
after taxes is a thing of the
past, at least if you work for a
corporation.
Comparatively few people
ever did make that much and
no one it appeared from treas
ury records today, has been able
to get that much pay out of a
company since mid-war 1944,
when Film Producer Leo Mc
Carey was credited with $1,113,-
035 for 12 months' efforts.
A new treasury list shows
America's best paid corporation
employe in 1947 (or fiscal years
spilling over into 1948) got
$810,000 $175,300 less than he
got to be No. 1 the previous year
also. The list showed salaries
as they stood before payment of
heavy taxes.
The top man, and It's his third
straight year as such, is Greek-
born Charles P. Skouras, presi
dent of National Theatres
Amusement Co., Inc., and of Fox
West Coast Agency Corp.
The top salaried woman for
1947 was Movie Star Betty Gra-
ble, Although the $208,000 list-
New Bus Terminals
Now in Effect
New stops and a new termin
al in the city center for street
buses of the City Transit Lines
went into use Sunday morn
ing with not a great deal of con
fusion, said Robert J. David
son, manager.
He reported that there was
some Inquiry by persons who
nad not read the publicity that
preceded the change. It is now
possible for the buses to draw up
to the curb at all stopping plac
es. The new terminal on the
east side of Commercial im
mediately south of Court street
is 170 feet long, giving room
for more buses than the old one
at the other end of the block
which was 100 feet.
The necessary painting for the
stops was completed, Sunday by
the city engineering department.
r,a.l.,CY "
Mac Rebukes
Red Duplicity
Tokyo, June 13 VP) General
MacArthur told Russia today she
was inciting "disorder and vio
lence" in Japan. The supreme
allied occupation commander
also accused the Soviets of "in
consistent demagoguery.".
In a bristling reply to a let
ter from the Russian mission
chief charging that Japanese
labor was being suppressed,
MacArthur said:
"The Soviet letter, replete
with inaccuracies and misrepre
sentations of fact, could be dis
regarded as routine Soviet prop
aganda did it not so completely
mask the Soviet role as an in
citer of disorder and violence in
an otherwise orderly Japanese
society.
"The thorough duplicity of Its
apparent championship of fun
damental human rights on the
one hand the Soviet callous in
difference to the release for re
patriation of Japanese prison
ers of war on the other, its talk
of greater liberality for Japan
ese workers and the Soviet prac
tice of labor exploitation, is a
shocking demonstration of in
consistent demagoguery."
The letter which drew Mac
Arthur's fire was written by Lt
Gen. K. N. Derevyanko, chief
of the Soviet mission here and
mer-'or of the allied council for
Japan,
Tnc Russian accused MacAr
thur of not taking "any meas
ures to prevent these actions
that constitute violation of the
Potsdam agreement and of the
Far East commission's policy de
cisions pertaining to the democ
ratization of Japan."
Mt. Angel Postmaster
Washington, June 13 UP) The
nomination of Leonard A. Fick
er as postmaster at Mt. Angel
Ore., has been confirmed by the
senate.
6V
&
Court Upholds Contempt
Conviction of Film Writers
Washington, June 13 VP) The U.S. circuit court of appeals
ruled today that a congressional committee has the right to de
mand that a witness say whether or not he is a communist'.
The decision upheld contempt convictions of Screen Writers
John Howard Lawson and Dalton Trumbo.
For Lawson and Trumbo, the
ruling moved them one step
closer toward actually serving
one-year Jail sentences. The sen
tenecs, plus $1,000 fines, were
meted out in U. S. district court
because they refused to tell the
house un-American activities
committee last year whether or
not they are communists.
All Lawson and Trumbo, now
free on bond, -can dc is appeal
to the supreme court. They are
certain to do that.
Eight other movie figures are
In the same boat with them.
Their trials have been delayed
by agreement pending outcome
of the Lawson-Trumbo appeal.
The unanimous decision of the
three judges Bennett Champ
Clark, Wilbur K. Miller and
George C. Sweeney said that
considering the times, and thej
Big 4 Reach
Showdown on
German Crisis
Consultations On with
Home Governments on
Secret Proposals
Paris, June 13 (U.R The Big
Four conference on Germany
reached the showdown stage to
day, with both east and west ur
gently consulting their govern
ments on new secret proposals.
The conference was in recess
for the day. The suspension of
formal sessions was by mutual
agreement.
Soviet Foreign Minister An
drei Vishinsky needed time to
consult Moscow on a "last
chance" proposal by the west,
and to get directions for his an
swer. The proposal was believed
to Involve a limited agreement
on resumption of German trade
and free access to Berlin.
Rigid Gag Rule
The western powers needed
time to consider Vishinsky's
counter-suggestions and his ini
tial reaction to the west's plan
for preventing this conference
from becoming a total failure.
To guard against premature
leaks, Secretary of State Dean
Acheson imposed an unusually
rigid gag rule on members of
his delegation. He forbade them
to talk about the secret deal now
in the works.
"Some proposals have been
made which need considera
tion," one western delegation
spokesman said. "It is still hop
ed mat his meeting will end by
the end of this week. But Mr.
Vishinsky is awaiting instruc
tions.
Don't go on the assumption.
however, that the western pow
ers were the only ones to make
proposals during the last few
days of secret meetings and be-
nind the scenes meetings.
Propaganda and Fleas
As a result of the secrecy, ru
mors mushroomed. Some said
the proposals under study would
remain secret, and might never
be put in writing. They suggest
ed a "gentlemen's agreement."
Others speculated on an agree
ment for another meeting of the
heads of state.
Meeting in open session Sun
day, the ministers accomplished
nothing except an exchange of
witty remarks set off by Secre
tary of State Dean Acheson.
Acheson said Soviet proposals
for Germany revealed so far
were "as full of propaganda as has blocked rail delivery of sup
a dog is of fleas." plies to Berlin and prevented an
In fact, Acheson said, "I
would say it was all fleas and
no dog." ,
Senate Group
Asks for Slash
Washington, June 13 UP) A
resolution directing President
Truman to trim 5 to 10 per cent
off funds voted by congress for
executive agencies was approv
ed today by the senate expendi
tures committee.
Chairman McClellan (D.,
Ark.) said the committee voted
8 to 2 for the resolution and
added he will introduce It im
mediately. He estimated that approval of
the resolution by congress and
the president would mean sav
ings of $2,000,000,000 to $4,
000,000,000 in federal expendi
tures in the fiscal year starting
July 1.
McClellan said he hoped that
it would depend on how federal
tax receipts hold up.
The committee acted in the
midst of a quarrel between
President Truman and the sen
ate appropriations committee
over slashing European recov
ery funds.
The McClellan committee res
olution applies to all executive
agenclei and departments. Mc
Clellan told reporters that it
does not apply to funds for con
gress or the judiciary.
Influence movies play in Ameri
can life, it is hard to imagine
"any more pertinent question"
that the one about communist
party affiliation.
The decision declared:
"No one can doubt in these
chaotic times that the destiny of
all nations hangs in balance In
the current ideological struggle
between communist-thinking and
democratic-thinking people of
the world."
The deciiion dots not close the
door against a witness' refusing
to say whether or not he is a com
munist on grounds that to an
swer would "Incriminate" or
"degrade" him. That is another
matter coming under a section of
the constitution saying, in effect,
that no man can be forced to tes
tify against himself.
Big 4 Powers
End Berlin Talks
In Stalemate
No Sign of Agreement
On All-German Trad
And Transport
Berlin, June 13 VP) The four
occupation powers ended all
Germany trade and transport
talks today with no indication
of an agreement.
Representatives Immediately
sent separate reports to the
council of foreign ministers in
Paris. There was every Indica
tion the Russians had refused
to yield on several major points.
As a result, the question of
reviving east-west trade in Ger
many and re-uniting the divided
city of Berlin fell back into the
laps of the Big Four at Paris,
Hope Strike to End
There was hope that the 24
day old rail strike might come
to an end soon, perhaps Wednes
day, despite the fact that top
German union leaders rebuffed
an American appeal for an Im
mediate end to the transport-
jamming stoppage.
The issue will be put before
the rank and file of the union
in a referendum tomorrow.
Seventy-five percent of the
membership must vote to con
tinue the walkout or it will be
called off automatically.
The settlement terms were
worked out by the United States,
in consultation with Britain and
France, and agreed to by Rus
sia. The American commandant
in Berlin, Brig. Gen. Frank L.
Howley, asked the strikers to
accept the offer and got a prom
ise to do so from top union of
ficials.
Terms Offered
The terms, left to the mem
bership for decision by the 600
lower-level leaders, called for
payment of 75 percent of wages
in west marks, worth four times
as much as the east marks pre
viously used to pay wages, and
no reprisals by the Soviet-con
trolled railway management
against the anti-Red union lead
ers.
The management would pay
60 percent of the wages in west
marks and the west Berlin city
government would exchange an
additional 15 percent of the
men's salaries into the more val
uable western currency.
The strike, marked by vio
lence which caused two deaths.
east-west accord on German
trade.
Although union leaders are
confident the men will vote to
end the strike, a speaker who
called for continuance ot the
walkout was widely applauded
at yesterday's meeting.
'Mayor's Cousin'
In Durance Vile
A bout with Bacchus left the
"mayor's cousin" in the Salem
city bastile Monday when he was
unable to pay a $20 tine on
charge of being drunk.
The cousin, who was finally
identified in police reports as Pe
ter A. Dahl, a transient, first
drew the attention of police with
his extravagant gesticulations
and talk in the restaurant of the
Greyhound bus depot.
He grabbed a patrolman by the
hand and Introduced himself as
the "mayor's cousin." He went
on to describe his ranch in Ida
ho as the world's largest, and
said he owned some 32,000 to
35,000 head of cattle.
He explained his presence in
Salem by saying that he had
spent the day with his cousin.
"Mayor Engstrom," and was en
route to "Frisco" to pick up
$250,000 which he had due from
cattle sales.
Dahl then introduced a 21-
year-old Willamlna youth to the
police and told how he had hired
him at $400 a month plus board
and room. He said his employe
was an ex-serviceman.'
By that time, Dahl switched
personalities and Introduced him
self as "GI Engstrom."
Curious, police interrogated
Dahl's companion, Ralph R. Ko
mrous, and found he had been
working for him for two days,
but had seen no money.
Further questioning before the
arrest became confused when
Dahl kept removing his upper
plate to exhibit a serial number
which he claimed proved he had
served in the marines.
WEATHER
iRrleued bv U. S.
Weather Bureau!
Forecast for Salem and Vicini
ty: Mostly clear tonight and
Tuesday with little change in
temperature. Lowest tempera
ture expected tonight, 4B de
grees: hlKheAt Tueidsy, U. Con
ditions will be lsvornble tor all
Hsrlcultural activities Tuesday.
Maximum yesterday 82. Mint
mum todav 43. Mean tempera
ture yesterday 83, which was J
above normal. Total 34-hour pre
cipitation to 11:30 am. today 0.
Total precipitation for the
month .13 of an inch, which Is
,3ft of an Inch below normal.
Willamette river height at Sa
lem Monday morning .1 of a foot