Hikes in Jobless
Pay in Effect
Week of July 4
' Unemployed Benefits
Of $25 a Week for
26 Weeks
G apital Joiariial
Vishinsky Quits
Secret Session
Truman Says
Spy Hysteria to
Die Out Soon
Refuses Comment on
Accusations Made
Against FBI Chief
rrAfter Parley
61st Year, No. 143
Entered M MCOttd ClftM
uatMr At feltm. Ortcoo
Salem, Oregon, Thursday, June 16, 1949 (24 Pages)
ce 5c
Br JAMES D. OLSON
Increased unemployment com
pensation payments In Oregon
will become effective for the
week beginning July 4, accord
ing to announcement made
Thursday by the state unemploy
ment compensation commission.
In order to avoid a rush of
new aDDlications during the
week that the increased benefits
become effective, the commis
sion will receive new claims for
tiiS 1949-50 year during the
week of June 20-25 from all un
employed now reporting for be
nefits, while others may file
new claims at any time after
June 26.
Claims will be received by the
28 local state unemployment of
fices throughout Oregon, it was
announced.
New Schedule
The new schedule allows max
imum annual benefits of $25 a
week for 26 weeks for all per
sons who earned $2600 or more
in the covered period employed
during 1948. Formerly the bene
fits were paid for only 20 weeks
and $20 was the maximum pay
ment. For those who received be
tween $1600 and $2600 the
change provides payments rang
ing between $20 to $25 for the
26 week period.
Those paid $400 to $1600 may
draw from $15 to $20 for periods
ranging from six and two-thirds
weeks to 20 weeks, while those
with lesser earnings will not be
entitled to any compensation.
26,000 Ineligible
The commission estimates that
about 26,000 workers will be
made ineligible for unemploy
ment benefits by the legislative
action raising the minimum
earnings from $300 to $400 a
year.
The average weekly checks
for eligible unemployed under
creased schedule is expect-
Inmiacn frnm 170 in
V'-imately $19.35. On the
paid during the year
i July 2, the increased
schedule will result in extra
payments by the commission of
about $1,575,000 for the 1949-50
fiscal year.
100,000 Claims In Year
Records of the commission
show that approximately 100.
000 unemployed - filed.- claims
during the current benefit year
with about one in eight claims,
found invalid and at least as
many more not become compen
sable. For those receiving payments
during the 1948-49 year the av
erage duration of unemployment
was nearly 11 weeks, longest for
any year except 1946.
Officials of the commission
said that if unemployment in the
state reaches the same level dur
ing the 1949-50 year as in the
current year, claims are almost
certain to increase, as about 94,
000 veterans who will cease to
receive GI benefits will file to
state unemployment compensa
tion payments.
is Contracts
Garfield-.. I
sss walnsurance
so survives.
daughter, t&ontract for pub-
and another ft, property dam-
, T" the- state of
Twin. Taken.lomobiles and
trucks ".alstronV by tne
board of con .d torn I jy j0 Gener
al Casualty coiiijSlQV.. .. .
The company, whosV sjsjjif is
Dooly and Co. of Portland, did
not, however, subrpA the lowest
bid.
The lowest Jfd of $74,717 was
submitted ly Truck Insurance
Exchange of Los Angeles, which
- .TVW-las the business. The insur
ance is for one year beginning
July 1.
The board said that General
Casualty also will spend from
$10,000 to $15,000 in educating
state employes in how to drive
properly. The object is to reduce
the number of accidents.
The only other bid, $98,503,
was submitted by Phil Grossma
yer Co., Portland, for the Trav
elers Insurance Co.
YOU TOO!
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"I told $40 worth ef
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60c ad," (Name en re
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inserted in the
CapitalJournal
Salem's Leading Newspaper
.Is an Excellent Investment
Senate Adds 4
T-H Features
To Labor Bill
Washington, June 16 UP) The
senate today wrote another Taft
Hartley law feature into the
Truman labor bill a require
ment for non-communist oaths.
It was approved on a voice
vote.
Three other amendments
which have a Taft-Hartley look
about them were added to the
administration measure by the
senate yesterday in the first
voting of its long labor law de
bate. Changes Approved
The changes, all approved by
voice votes with no audible op
position, would (1) require un
ions, as well as management, to
bargain in good faith; (2) guar
antee freedom of speech, short
of threats or promises of bene
fits, in labor relations; and (3)
require both unions and employ
ers to file annual financial re
ports. Those provisions are not in
every case identical to sections
of the T-H law, but the differ
ences generally are slight. The
amendments had no blessing
from President Truman, who
publicly has opposed any revis
ion of the administration bill.
That bill would repeal the
Taft-Hartley law and replace it
with a slightly modified version
of the old Wagner act.
Big Test Yet to Come
The big test is yet to come, on
a substitute offered by Senator
Taft (R-Ohio) and two other
republicans. It would keep all
the basic Taft-Hartley provis
ions, including labor-hated in
junctions to halt national emer
gency labor disputes, and the
ban on the closed shop.
A group of democrats and re
publicans opposed to the Taft
substitute sponsored the three
amendments adopted yesterday.
The same group is backing the
non-communist oath amend
ment which was up today.
Strike Retards
New Building
Salem contractors report that
if the work stoppage in four Sa
lem woodworking plants, caused
by a wage dispute, continues
much longer it will seriously re
tard building activities. So far it
has not been felt seriously.
Plants affected here are Keith
Brown Building Supply, Oregon
Pulp Sc Paper company lumber
division, Salem Willamette Sup
ply, and Reinholdt & Lewis.
The Millmen's union is asking
for an increase of 17 M cents an
hour over the present scale
which ranges from $1.45 to
$1.77 V4. The Woodwork Em
ployers association of the state,
to which the Salem plants be
long, has offered an increase of
1 Vi cents an hour, plus six holi
days a year on pay in addition
to two weeks vacation on pay.
The balem local of the union.
No. 1411, will vote on the offer
Thursday night.
Contractors say the smaller
shops that have met the demand
of the union, and are in oper
ation, are not big enough to meet
the building needs of the community.
Power Plant Blaze Halts
Industries in Dallas Area
Dallas, Ore., June 16 Heavy industries depending upon elec
tric power are at a standstill today while other users of electrical
power are on a restricted basis as the result of a fire which de
stroyed the Dallas sub-station of the Mountain States Power
company about 9 o'clock Wednesday night.
As a result of the drain upon
existing facilities R. G. Mc-
Farland, local manager, is im
ploring residential users to con
serve power to the utmost until
repairs are completed, probably
not before late today. Damage
is estimated by McFarland at
$30,000.
The power plant blaze affect
ed not only industries here but
also at Independence and Falls
City. Some power is being
channeled to these and nearby
rural communities for essential
purposes.
Two 2000 KVA transformers
were damaged and are being
replaced by two being brought
here from Albany. As there is
only one truck available for
transporting the heavy equip
ment two trips will be neces
sary, each taking about five
hours.
Power company crewmen
were engaged in correcting
some line trouble when fuse
blew out on a high-voltage
transformer. The biasing fuse
ignited oil and set the entire
substation afire. Prompt action
by the Dallas fire department
saved the nearby Willamette
Valley lumber mill.
Operations at tht mill art on
House Group to
Add 12 Million
To Old Age Aid
Washington, June 16 M" The
house ways and means commit
tee may be nearly ready to rec-
ommend that about 12,000,000
more workers be blanketed un
der old age Insurance. That was
the unofficial word today from
secret committee meetings.
The newly covered workers
are not expected to include 5,-
000,000 farm operators and 3
500,000 farm workers.
This was reported to be the
tentative action on President
Truman's proposal that 20.000,-
000 additional workers be in
sured. About 30,000,000 al
ready are qualified for old age
benefits under this phase of so
cial security.
Program Decided On
The committee, meeting be
hind closed doors for six weeks,
also was understood to have
agreed tentatively to:
1. Boost old age benefit pay
ments substantially but not as
much as Mr. Truman asked. The
president wants benefits in
creased in some categories by
about 100 per cent.
2. Permit the social security
tax to jump next January 1 from
the present one per cent against
employes' pay and employers'
payrolls, to IK per cent, with
an increase January 1, 1952 to
two per cent against each. Pres
ent law provides for these
boosts.
The social security bill may
pass the house this year but
there is little, if any chance, it
will be taken up in the senate
until 1950.
Self Employed Persons
The tentative action of the
committee was reported to call
for bringing under the old age
insurance program 6,000,000
self employed persons, includ
ing doctors, lawyers, other pro
fessional men and persons oper
ating businesses.
Also, coverage may be ex
tended to around 2,500,000
household workers and several
smaller categories of working
people, including employes of
state and local governments (at
the option of the local govern
ing bodies).
If household workers are
brought in, the housewife may
have to pay a payroll tax, as
now paid by a business or in
dustry with covered workers.
Committeemen a p p a rently
have abandoned efforts to ex
tend coverage to farmers and
farm workers. .
Prohibition to Be
Oklahoma Issue
Oklahoma City, June 16 UP)
Oklahomans braced themselves
today for a solid summer of
knock-down campaigning on the
issues of liquor repeal.
Gov. Roy J. Turner gave the
signal yesterday which may
bring on one of the most bitterly-fought
campaigns in the
State's 42-year history.
Turner called for a vote on
the age-old issue at a special
election September 27.
a restricted basis with only a
small crew employed during the
day. The mill has a normal
payroll of 250 men. A switch
from the mill's electric plant
enabled most home owners and
business houses to continue
though some of the fringe resi
dents immediately outside the
city are still without power.
Emergency service was pro
vided both Dallas hospitals,
which had four surgical cases
and two births during the
period.
Power was cut from the In
dependence industries to pro
vide electricity for rural sub
scribers In the Polk county area
Shortly before the sub-station
fire the Dallas fire department
was called to the LaCreole
lumber company in North Dal
las where a fire starting from
an open burner was confined
to the green chain.
An hour after the sub-station
fire the department was called
to Rlckreall where a roof fire
at the Ezra Hart home was ex
tinguished with nominal dam-1
age.
Remarked Fire Chief Walter1
Young "It was the busiest day!
of the year." i
Seven Killed in Navy Plane Crash Charred wreckage
and a tail fin on which a yellow cross is being painted to
designate it as an "old crash" are all that remain of a navy
transport plane which crashed into mountain near Santa
Monica, Calif., killing all seven aboard. The victims were
all naval reservists from Memphis, Tenn. The plane was en
route from Moffett Field, Calif., near San Francisco to Los
Angeles. It crashed in a heavy fog.-(AP Wirephoto).
Woman's Club Adopts
Garbage Disposal Plan
By MARIAN LOWRY FISCHER
A garbage disposal plan for the city of Salem and community
has been selected as the project
in its participation in the "Build
of the General Federation of Women s clubs, it was announced
Thursday by Mrs. George W. Ailing.
Action to take on this projects-
was voted at a meeting of the
club membership this week, the
announcement following con
sultation with city officials and
leaders.
It is a project the club mem
bers plan to carry on to com
pletion, for years, if necessary,"
said Mrs. Ailing in making the
announcement.
The club's project would in
volve a comprehensive educa
tional and promotional program
for a garbage disposal plan. De
tails of the project will be an
nounced later as steps are out
lined as to what course to take
in the work. Overall committee
named for the project is Mrs.
Arthur Jones, Mrs. R. B. Lesher
and Mrs. Robert Hutcheon.
The "Build a Better Commun
ity" contest of the General Fed
eration of Women's clubs offers
$60,000 in prizes. Any one club
may win a $10,000, $5000,
$3000, or $2000 award. There
will be three national winners in
each classification and an addi
tional $5000 is to be given the
club judged to have the best
project in the country. Awards
will be given on: The basis of
the project, the value to the
community, the thoroughness of
organization, the effort expend
ed, the results obtained, the
quality of the club's report on
its community service activities.
At the meeting of the local
club members this week they
also voted to give a $100 scholar
ship to a high school senior girl
planning to take training in
elementary teaching; and they
voted their approval of the Sa
lem Art association's plan to re
store the old Bush home as i
museum.
Gov. McKay to Fly
To Colorado Springs
Governor Douglas McKay will
leave by plane tonight for Colo
rado Springs, Colo., to attend
the national governors confer
ence. He will be gone nine days.
Senate President William E.
Walsh, Coos Bay, will be acting
governor, and will come to Sa
lem only if he is needed.
Highway Bids Called
The state highway commis
sion said today it would open
bids in Portland June 28 on pav
ing 17.22 miles of the Parkrose-
Larch Mountain road section of
the Columbia river highway in
Multnomah county.
WEATHER
(Released by United States
Weather Bureau)
Forecast for 8alem and Vicin
ity : Partly cloudy tonight and
Friday. Little change In temper
ature. Lowest temperature ex
pected tonldht. 44 degrees; high
est Friday. 75. Conditions will be
favorable for farm work except
it will be too windy for dusting.
Maximum yesterday 75. Mini
mum today 45. Mean tempera
ture yesterday it which was 3
below normal. Total 24-hour
precipitation to 11 30 a. m today
trace. Total precipitation for the
month .13 of an Inch which la
.51 of an Inch below normal.
Willamette river height at Sa
lem. Thursday morning. -.4 of
a font.
for the Salem Woman's club
a Better Community" contest
Truman Receive
4-H Club Pin
Washington, June 16 UP)
President Truman received a
4-H club leadership pin today in
recognition of his work years
ago in organizing a 4-H club in
Jackson county, Mo., his home.
Accepting the award in the
presence of Several - hundred
boys and girls attending the na
tional 4-H club camp here, the
president said he was vitally in
terested in what the youngsters
are doing to better farm condi
tions.
The ceremony was held In the
White House rose garden.
Four club members posed
with the president including
Mary Bowers, Payne county.
Okla.; and Dan Warmock,
Baker, Ore.
The 4-H organization cited 11
civil leaders and six of its own
state leaders for "outstanding
service" to the 4-H club move
ment.
Those awarded silver medal
lions included: Harvey S. Fire
stone, Jr., Akron, Ohio, presi
dent of the Firestone Tire and
Rubber company; Harry C. Sey
mour, Corvallis, Ore., Triangle
Milling company; Fowler Mc-
Cormick, Chicago, chairman of
the board of the International
Harvester company.
Senate Fights
Slash in Funds
Washington, June 16 UP) The
flat 15 percent cut made by the
house in reclamation construc
tion funds apparently is up
against stiff resistance in the
senate.
Senator Hayden (D., Ariz.)
chairman of an appropriations
subcommittee, closed the hear
ing on the interior department
money bill yesterday with indi
cations that each project will be
judged largely on its own
merits.
He was supported by Senator
Wherry (R., Neb.), who said of
the house action:
"It just seems to me this way
of doing it endangers some of
these appropriations.
The existence of continuing
contracts those already enter
ed into which extend into the
next fiscal year when the in
terior bill becomes effective
will make a flat cut on all pro
jects difficult, Hayden said.
The 15 per cent across-the-
' board cut on all projects was
voted by the house on the as
sumption that construction costs
will decline that amount in the
next year.
Weathermen Blush
Vancouver, B.C., June 16 UP)
Weathermen from through
out the United States attended
opening sessions of the Amerl
can Meterological society con
ventlon yesterday.
Bright and sunny skies were
forecast.
Vancouver was drenched by
rain.
No CVA Position
Taken by Grange
Washington, June 16 (U.R) Al
bert S. Goss, master of national
Grange, said today the Grange
has taken no position "For,
against or neutral," on the pro
Dosed Columbia Valley authori
ty. Goss said there apparently
has been some misunderstand-
about the national Grange's
position in Oregon, where the
state Grange is strongly sup
porting the proposed CVA.
"It is not true," Goss said,
"that we oppose the Columbia
Valley authority."
He said however, the Grange
doesn't believe enough local
authority was provided in leg
islation setting up the Tennes
see Valley authority. He said
the Grange has sought to get
authors of several CVA bills
to modify their bills to provide
authority for states to purchase
later the power project from the
federal government.
Goss emphasized, however,
that this does not necessarily
mean that the Grange would op
pose the bills if changes were
not made. He said it is up to the
Grange's executive committee
to decide whether the organiza
tion will be "for, against or neu
tral." Barkley's Pay
Now $93,300
Washington, June 16 UP)
Vice President Barkley stands to
drw a total of $93,300 in the
next 12 months in salary, expen
ses and other allowances.
It's the best pay a vice presi
dent ever got.
The senate approved the sum
for its popular presiding officer
yesterday without a word of de
bate or discussion. At the same
time, its current economy trend
blotted out plans for a new $20,-
600,000 senate office building
after some lively debate.
Barkley s take is made up this
way: Salary $30,000; expense al
lowance $10,000; clerical assist
ance $47,970; automobile ex
pense including a chauffeur $5,-
330.
Just before Barkley took of
fice, the senate raised the vice
president's pay from $20,000 to
$30,000. It also created the $10,
000 expense fund. The clerical
assistance item voted yesterday
is $15,585 more than it was in
the current fiscal year, ending
June 30.
Modest Price Cuts May
Start Sales Booming Again
Washington, June 16 UP) Modest price cuts might be all this
country needs to start sales booming again.
That was the surprisingly simple implication of a federal re
serve board survey of consumer buying prospects for the Janu
ary 5-March 5 period. Announced yesterday, it boils down to
hl - -
.,' , .. . . . ,u,jage of $8,200 jaainst the 1S48
minds in the past 2',i months,
the American people have both
the money and the desire for
record quantities of goods but
at somewhat lower prices.
Automobiles? There were not
only more prospective buyers
this year than last, but they ex
pected to pay more for their
new and used cars, the survey
showed.
The finding: Out of 52.000,000
families, 3.600,000 intended to
buy new cars and 1.900,000
wanted used cars at costs aver
aging $2,060 and $710 respec
tively air overall average of
$1,000.
Houses? More prospective
buyers her, loo, than a year
ago some two to three milliin
of them and llviy were re
signed to higher costs: an aver-
Paris Meeting Evident
ly in Last Phase
Bc-fore Adjourning
Paris, June 16 UP) The four-
power council of foreign minis
ters met for 90 minutes today in
a secret session. Then Soviet
Foreign Minister Andrei Y. VI
shinsky left the conference
room, apparently to permit his
western colleagues to chew over
what he had told them.
It was believed the restricted
session would be followed later
in the day by a full session at
which each delegation's briefing
officer would be present to
make public what takes place.
In Last Phase
The Paris meeting evidently
is in its last phase. The United
States, Britain and France are
reported anxious to complete
the talks tonight. If this is
done, a communique on what
the conference has accomplish
ed will be issued. There have
been hopes that it would result
in achievement of at last a tem
porary east-west truce in Eu
rope.
Before the ministers today
was the question of how they
can help settle the complicated
Berlin rail strike. They talked
over the strike situation among
themselves yesterday with no
apparent results.
Some concrete arrangements
for the future of Berlin are be
lieved in sight, however. Those
arrangements would look some
thing like this:
Probable Agreement
Both sides would promise not
to reimpose any kind of trade
or traffic restrictions into or out
of Berlin.
Both would agree to promote
trade and commerce between
the respective zones.
Top Russian and western rep
resentatives in Germany would
be ordered to consult each other
any time trouble arose.
These four high commission
ers also would supervise the
formation and activities of an
all-German economic committee
dedicated to maintain and de
velop trade and financial links
between the country's two seg
ments.
Sales Tax Talk
At State Grange
Coos Bay, June 16 M) The
Oregon State Grange, relaxed
after an evening of ritual,
delved into sales tax arguments
today.
A committee report favoring
a sales tax was presented to the
convention floor as business
sessions resumed this morning
Much of yesterday was devoted
to Grange rituals, with more
than 200 persons lntiated into
the sixth degree.
The Grange followed expec
tations by an almost unanimous
endorsement of the Columbia
valley administration bill yes
terday. Grangers backed that up
with a decision to press their
congressmen for passage of the
measure this year.
The convention lashed out at
the recent state tax commission
shakeup with a resolution con
demning "political or spoils
system method fn selection or
dismissal of public employes of
the Slate of Oregon." The reso
lution spoke of "recent dismiss
al of certain efficient and ex
perienced employes."
The Troutdalc aluminum
plant was a Grange target, too
The delegates called for remov
al of the plant to another loca
tion unless fumes which hurt
crops and livestock can be con
trolled.
prospects' $7,-t(;il
More than 1.000,000 of the
1949 prospects wantt-d new
houses which is more new
houses than will he completed
this year. The demand was
heaviest for "moderate priced
houses of acceptable quality."
Television sets? Probably
twice as many prospects as last
year maybe around 1.450,000
or so in all.
For other durable goods
furniture, household appliances,
and the like buying intentions
were "slightly weaker early in
1949 than early in 1948." but
the "indicated decline in de
mand was small."
The big question remaining,
of course, is whether buyers
have undergone a sweeping
change of attitude since their
marked optimism of early
March.
Washington, June 1 UP)
President Truman today describ
ed the current uproar over spiel
as part of a post-war hysteria
which will die out as it has attci
other wars.
If any members of his admin
istration are infected by it, Mr.
Truman said, he will clean them
out.
But he would not comment at
his news conference on an edi
torial proposal that a commis
sion be named to investigate the
methods and procedures of the
FBI and its director, J. Edgar
Hoover.
No Resignation Submitted
He stated flatly, however, thai
Hoover has not submitted his
resignation. This was in reply
to questions about a published
report of a quarrel between the
FBI boss and Attorney General
Tom Clark.
When asked whether Hoover
has his confidence, Mr. Truman
replied that Mr. Hoover has
done a good job.
And when asked whether he
thought Hoover could be includ
ed in ttiose denounced by Mr.
Truman last week for headline
hunting, the president invited
reporters to make their own esti
mate of the situation.
Neither would he comment on
whether it would be a good Idea
to clear federal files of what a
reporter called "unsubstantiat
ed" reports.
Quotes Past History
The question obviously re
ferred to reports of anonymous
informants to the FBI which
have been read in the Judith'
Coplon espionage trial. These
reports, still unevaluated by the
im, named many prominent
persons as communists.
As for the subject of spies, he
invited reporters to read the his
tory of the alien and sedition
laws of the 17B0's, following the
Revolutionary war. You'll be '
surprised at the parallel, he said.
That hysteria finally died out
and the country did not go to
hell, said Mr. Truman adding:
So will this hysteria, and the
country will not go to hell.
The spy discussion took up
most of the news conference but
the president also had this to
say on other matters:
On Other Matters -. . .
Declared the Brannan farm
plan will be passed by the pres
ent congress. Reports from the
democratic farm meeting at Des
Moines, hinting that it might be
good political strategy to delay
action until 1950, definitely are
not administration policy, he
emphasized.
Expressed belief that congress
should extend regulations which
authorizes federal controls over
installment terms and bank
credit. The law expires June
30.
Called on congress to pass
promptly the reorganization bill
which would give him sweeping
powers to merge and streamline
government bureaus. A com
promise to resolve house and
senate differences on the meas
ure was approved by a confer
ence committee yesterday. Sev
eral reorganizations are ready
now, he reported.
Reorganization
Measure Passed
Washington, June 16 UP) Con
gress completed action today on
a bill giving President Truman
broad powers to streamline the
executive branch of the govern
ment. The senate, by a voice vote
with no opposition, approved a
compromise version of the bill
which was worked out by a sen-:ite-house
committee yesterday.
The house passed it a few
minutes earlier.
Senate action sent the mea
sure on its way to the White
House after a month of bitter
wrangling.
Just before congress acted
President Truman said that he
would go ahead with reorgani
zation plans as soon as con
gress finished with the legisla
tion. House and senate conferees
finally got together yesterday
on a compromise that would let
a vote of a majority of the
whole membership of either
house stop a reorganization pro
posal. Mr. Truman would not com
ment on a proposal that a sie
cial session of congress be called
for Oct. 1 to enact reorganiza
tion legislation.
Locks Closed July 1
Portland. June 16 UP) Tin
Willamelte falls locks at West
Linn will be closed to all nav
igation from July 1 through
July 10. The army corps of
engineers said repairs would be
made to gate sills and the east
side of the lock would get a
Incw hydraulic opening device.