, Protest by Young Fails On Deaf Ears State Board Fails to Tell Why Low Insur ance Bid Rejected G apital JiJounl Public Housing Section of Bill FKilled in House Labor Leaders Ask Senate to Kill Labor Bill 61st Year, No. 5ff Kntertd u lecond elu matter at Salem. Ores on Salem, Oregon, Wednesday, June 2 y l7 Pages) By JAMES D. OLSON Formal protest on the award of contract for liability insur- ance on state can to the second low bidder was made Tuesday to the board of control by Clarence J. Young, attorney for the Truck Exchange, low bidders. But the protest apparently fell on deaf ears as the board members took no action at the meeting. At an unscheduled meeting about 10 days ago the board awarded the contract to the Gen eral Insurance company of Se attle through Dooley & Co. of Portland on a bid of $83,496.52 f although the Truck Exchange, which had handled the state's . business for the last three years Vhad bid $74,717.79 or $8778.73 lower than the successful bid der. Young declared that after the award had been made, an nouncement followed that the successful bidder would carry on a safety program costing ap proximately $15,000 a year. Patrol Service Claimed "We have been carrying on a safety program for the past three years that has cost us $18,000 a year," Young said. "However, there was nothing in the specifications calling for a safety program nor were my cli ents told that such a program would be one of the considera tions for award of the contract." Young told the board that three safety engineers employed by his company patrolled the roads and checked on equipment insured by the Exchange. "Have you made any reports on inspections or observations made on state cars?" asked State Treasurer Walter J. Pearson. "Yes sir," answered the attor ney as he handed Pearson a large sheaf of copies of reports made to the state on operation of state cars and trucks on high ways. Picking up several of these reports at random, the attorney read that one state car was ob served traveling through the ci I, ty of Halsey at 45 miles an hour J in a 25 mile an hour zone. Another report called atten tion to a state car traveling through a 25-mile zone in Har risburg at about 32 miles an hour and several other reports gave other infractions of the law by state car drivers. . No Complaints Heard Young declared that during the three years his company had carried the liability insurance for the state, no complaints had been registered with the com pany by the state on lack of service. (Continued on Fate 5, Column 6) 3 Years Prison Term for Todd Jack O. Todd Wednesday re ceived a three year prison sen tence from Circuit Judge George R. Duncan on a charge of lar cenizing a car belonging to Reinholt Blum. District : Attorney Ed Stad ter said he hadn't decided fully what action will be taken to ward Todd's attemtped jail , break of earlier in the month , , when he spent most of the night . sawing nis way oui oi me county jail here only to step into the arms of deputy sheriffs as early s. iJn the morning he emerged ,Through the severed jail bars. He indicated he might possibly consider the three-year jolt as sufficient for Todd but said he had not fully decided whether the matter would be further con sidered. Meanwhile Todd's wife is waiting disposition of a charge of possession of narcotics and also of attempting to aid her husband in his attempted jail break. Clifford Eugene Hummell be fore the court on a plea of guil ty to larceny of an automobile from Scott A. Wheatley was sent to the state hospital for 30 days observation before imposition of sentence. Richard Fones was sentenced to a year in Jail on a non support charge, a previous order of Dro- bation rescinded and a new one entered for three years more on probation on condition he make monthly payments of $50 to his ex-wife Selma Fones to reim burse her for support already given their children. Selma Fones appeared and gave testimony to me effect he had made no pay ments over a certain nerind. Pones himself denied this on the stand and said he had made a Payment to her. The emirt sairi he was inclined to believe his ex-wife. The ex-wife was Drought up from jail to testify She is under indictment chare- with larceny of $1100 from Willamette university where she "s employed. 3 Nations Plan Agreed Upon for West Germany Washington, June 29 VP) The United States, Britain and France published today their formal agreement on three-power machinery to run western Ger many, beginning in mid-Septem ber. The agreement specifies that the top allied council, composed of the United States, British and French civilian high commission ers, will have headquarters "at the seat of the German federal government" in a special area directly ruled by the high com mission rather than in any zone of occupation. This means that the western headquarters in Germany will be shifted next fall from strife- ridden Berlin. Presumably it will go to Bonn, which officials here said will be the seat of the pro jected new German government. Details Worked Out "The charter of the allied high commission for Germany" is a detailed statement for organiza tion of the western occupation authorities into a single unit for the supervision of western Ger many under its new government. The principles controlling this new organization were worked out in Washington last spring by Secretary of State Acheson and Foreign Ministers Bevin of Bri tain and Schuman of France. On June 20. those three, meet ing in Paris, signed the formal charter" which was published today. John McCloy, resigning presi- missioner for Germany. er assistant secretary of war, will be the United States high com missioner for eGrmany. Hoover Balks At Army Plan Washington, June 29 (IP) Herbert Hoover said today it would be ."dangerous to the country" to create a chairman for the joint chiefs, of staff of the armed services as proposed by the Truman administration. Such an office, the former president declared, would place too much power in any military officer." Hoover testified before the house armed services committee on legislation to amend the arm ed services unification law of 1947. Generally, the measure is aimed to give more power to the secretary of defense and iron out "bugs" in the two-year-old law. . Backers have - contended the proposed revisions will permit savings of many millions of dol lars. The senate passed the leg islation May 26. Hoover endorsed the general purposes of the bill but strongly opposed a section which would create purposes of the bill but strongly opposed a section which would create a chairman far the joint chiefs of staff. Each of the armed services is represented on the joint chiefs by its chief of staff. Under the present arrangement, each is equal in theory and they try to reach their decisions by mutual agreement. The proposa lto create a chair man was advanced by the late Secretary of Defense Forrestal and has the specific endorse ment of President Truman. Un der the plan, the chairman would act as chief military ad visor to the president and the secretary of defense. Judith Coplon's Fate in Hands of Federal Jury Washington, June 29 (IP) The Judith Coplon espionage case went to a federal court jury today. The jury retired to decide the fate of the former justice depart ment work after listening to instructions by Federal Judge Al bert L. Reeves on points of law. The judge spoke for 25 mm- utes, repeatedly stressing that the defendant's intent was' 3 major point for the jury's con sideration. Before the judge began speak ing, defense attorney Archibald Palmer demanded that he de clare a mistrial. Palmer's move was based on the closing argument of prose cutor John M. Kelley, Jr., who described Miss Coploi as a clever spy in Russia's behalf. Palmer argued that Kelley's appeal was based on "passion and prejudice." "I deny the motion," Judge Reeves said when Palmer fin ished. As soon as the jury filed out to begin deliberations, Palmer jumped to his feet again io com nlam about the iudeeV. instruc - Itions. He centered on the judge's Marshall Plan Nations Facing Trade Decision Paris, June 29 (IP) Britain faces a showdown today with other Marshall plan nations on how trade should be conducted among the nations of Europe, The seven-member consultat ive committee of the organiza tion for European economic co operation (OEEC) met for a lit tle more than "half an hour this morning and decided to turn the whole problem over to, the full 19-nation organization later in the day." An OEEC spokesman de scribed the morning meeting as "just a formal gathering" and said: "The real debate will be gin now, and it will probably go on tomorrow." Stakes in Prestige ' W. Averell Harriman, U.S. ambassador - at - large for the Marshall plan, attended the consultative committee session. A spokesman for him denied re ports published in London that Harriman had threatened to cut Marshall plan aid to Britain un less the British agreed to Amer ican proposals. The stakes in national pres tige and perhaps even national economic stability seems large in comparison with the immedi ate dollar stakes. Last week the top economic experts of Britain, France and Belgium met in Brussels but could not resolve v their differ ences. It was a question of the others not being able to reach an agreement with Sir Stafford Cripps, Britain's iron - willed chancellor of .the exchequer. Question at Issue The question is whether each nation will make its own trade agreements with the other na tions singly, or will all the na tions set up general principles, agree on their currency rela tionships and then take steps toward multilateral trade. If the cabinet ministers de cide that western Europe's econ omy has recovered sufficiently for the countries to give up de pendence on barter agreements, they may vote for free trade among all the nations. The United States, furnishing the Marshall plan dollars, fa vors free trade. Belgium, the most prosperous of the Marshall plan countries, would like to see an advance toward that object ive. 4000 UMW Force Colliery to Close Madisonville, Ky., June 29 VP) The East Diamond coal mine was closed today at the request of Hopkins County Sheriff Ras Gilliland. This action was taken within a few hours after an estimated 4,000 United Mine Workers from the west Kentucky coal field marched to the mine, operated by non-union workers. Sheriff Gilliland said he asked the marchers to leave the com pany property and they refused. He said the situation was be yond his control and he asked the company to close operations. It complied. The men remained at the mine. Spokesmen for the UMW agreed with the sheriff and state police there was no violence. Jess Loveless, secretary of UMW district 23, said he anticipated no trouble from UMW mem bers. reference to Miss Coplon's meet ings in New York with Valen tine A. Gubitchev as clandestine. Judge Reeves began by tell ing the eight men and four wo men six Negroes and six white that they must accept the law as he declares it, but that the jurors are the sole judges of the facts. He said the evidence was clear that Miss Coplon did copy and take "certain writings, docu ments and notes" from justice department files. The jury must decide, he said, whether she took the papers with intent to injure the United States and aid Russia. He also told the jurors they must give the defendant the benefit of "reasonable doubt." He hastily added that this meant i"suhstantial rinnht " (Pictures on Page 13) LLUiZJZl , E E : JLr-f l --4fjr-J Oil Strikers Get Work Order A group of about 50 Berlin railroad strikers sit on bench in rail yard and listen to an official reading a back-to-work order. The 38-day rail tie up came to an end as these and other strikers went back to their jobs and the Soviet-directed management resumed control of west Berlin stations. (AP Wirephoto via radio from Berlin.) Wheat Crop Price $1.96 a Bushel Washington, June 29 (U.R) The government disclosed today it will support the price of this year's wheat crop at $1.96 a bushel, on a national average farm basis. In its price study, the department said that prices received by growers for commercial crops consecutive month and were at the lowest level for any June 15 since 1942. It said the largest price de clines for truck crops were reg istered in tomatoes, lettuce, car rots, onions and cabbage. Wheat prices dropped again last month and, "a result, the index of prices received for good grains . . . was at the low est level since September, 1946;" the department said. Lower prices also were re ported by the department ' for dairy products, feed grains and hay, and oil-bearing crops. The department said livestock prices were up generally and prices re ceived for hogs rose 90 cents per hundred pounds from mid May to mid-June. It added, however, that prices received for meat ani mals were all lower than a year ago." The support price compares with $2 a bushel for the 1948 bushel crop. The agriculture department, its mid-monthly report on farm prices, said the average price of wheat received by farm ers on June 15 was $1.86 a bush el. The parity price was $2.17 a bushel at that time. The department is required by law to support the price of wheat at 90 per cent of the June parity. That is $1.96. Support prices for wheat at various markets throughout the country will be announced, by the department at a later date. Some of these will vary slight ly from the national average price the government plans to guarantee producers for the 1949 wheat crop, Car Keys Stolen Says Mrs. Hiss New York, June 29 VP) Mrs. Alger Hiss testified today at her husband's perjury trial that she believed someone took the keys to the Hiss car and Washington home during the first seven months of 1938. It was during this period that Whittaker Chambers, courier for a prewar communist spy ring, claims Hiss passed him copies of state department secret pa pers. Mrs. Hiss denied she ever typed summaries of department documents as she repeatedly contradicted testimony offered earlier by Chambers and his wife at the trial of the former state department official. Under direct examination by Defense Attorney Lloyd Paul Stryker she said she "missed a pocketbook" containing keys to the Hiss auto and home on Volta Place, Washingtdn. Under cross-examination by the government prosecutor. As sistant U. S. Attorney Thomas F. Murphy, Mrs. Hiss said the loss occurred some time during the first seven months of 1938 "Did you report it to the po lice?" asked Murphy. "I did not," she replied. Under direct testimony she denied she had ever handed over any of the government's 47 ex hibits, including four handwrit ten notes, to Chambers. She also said she had never given Cham bers a key to the Volta Place house. Support '49 dropped sharply for the fourth - CVA Dead Duck This Session Washington, June 29 (P) In dications mounted today that the proposed Columbia valley administration is a dead duck for the present session of con gress. Chairman Whittington (D., Miss.) of the house public works committee said he is certain no action can be taken at this ses sion on legislation to create a CVA to develop the Columbia basin in the Pacific northwest. Resumption of hearings oh the legislation appeared unlike ly before the second week in July, at the earliest. The senate public works com mittee announced an indefinite postponement. Committee at taches said the committee prob ably won't be able to get back to the CVA until after July 11. Whittington said the house committee must clear up other work before it can return to the CVA legislation. "I feel certain," Whittington said, "that members of both the senate and house committees would not want to vote on the bill until after many of them have visited the Columbia basin area. Such a trip is impossible at this time and I do not see how the trip can be made until after congress recesses and when that will be is indefinite now." Heal, Drought Return to East (By United PrejuO Summer heat and drought clamped a new hold on the east today after cool northern air brought a short relief from soar ing temperatures. After two days of cool weath er, rising temperatures faced New Englanders. The general drought which has seared crops began its 36th day. The weather bureau said no general rains were in sight. Thundershowers over much of the east and middlewest yester day gave some farmers badly needed rain, but from the Atlan tic to the Dakotas, weather fore casters looked for clear skies to day. Washington relaxed yesterday with a comfortable 81-degree temperature. A few lawmakers put on the neckties they loosen ed when the thermometer hit a blistering 96 Sunday. They fac ed cloudy, humid and somewhat warmer weather today. Midsummer heat was begin ning to punish the midwest as well as the east. A 91-degrec high temperature in Indianapo lis yesterday caused at least four heat prostrations. WEATHER (Released by U.S. Weather Bureau) Forecast for Salem and Vicini ty: Fair tonight and Thursday; slightly cooler tonight, warmer Thursday. Lowest temperature expected tonight, 44 degrees; highest Thursday, 76. Conditions will be favorable for farm work, except for fresh winds. Maxi mum yesterday 65. Minimum to day 48. Mean temperature yes terday 56. which was 8 below normal. Total 24-hour precipita tion to 11:30 a.m. today .11 of an inch. Total precipitation for the month .96 of inch, which is .22 of an inch below normal Willamette river height at Salem Wednesday morning -1.6 feet. Reprisals for Berlin Strike Berlin, June 29 VP) The anti- communist Berlin Railway union charged today that the Soviet controlled railway management has begun reprisals against men who took part in the crippling 38-day rail strike. The union said 375 men were fired without notice. The 14,000 strikers reported back to work yesterday. Officials of the reichsbahn (railway management) were not available for comment. The strikers had gone back to work on the promise that there would be no reprisals against the workers. Rail traffic remained stalled, meanwhile, while crews worked to repair damage caused by the long stoppage. A reichsbahn official said he could give no definite date for resumption of normal traffic. The Russians released to west Berlin authorities today seven tons of power plant machinery seized in a truck convoy yester day. The incident had aroused a British-American protest. The cargo was sent from Frankfurt to Berlin for construe? tion of a now power plant de signed to make west Berlin in dependent of the Soviet sector. The need was emphasized last winter during the Soviet block ade of west Berlin, when the western sectors spent nights in darkness. This had made the seizure an incident which was out of the ordinary. Colombia Ready To Crush Banditry Bogota, Colombia, June 29 VP) The government warned to day it is prepared to crush ban ditry" as reports of new "politi cal" killings reached here from the interior. News dispatches said 16 persons were slain Mon day alone. The current clashes mark the latest round in the old feud be tween the liberal and conserva tive parties. The two groups have been warring for years. Each party usually blames the other for starting the row. The liberals, who lost part of their majority in the chamber of representatives in a nation wide election early this month have declared opposition to all administrative sections of the government. The conservatives, under President Mariano Os pina Perez, control the govern ment's executive branch. Salem all Set for Annual Festival During Week-End By MARGARET MAGEE While the weather teeters between sunny days and showers Salnm's Cherrvland Festival making their last minute plans for the annual three-day celebra tion, nooning Thursday. The changing and uncertain (hp festival nlans officials Wed- nesdav morning declared. If it isiLorenz, 19-yoar-old son of Mr. just a light Oregon mist the program will continue on sched ule. Should there be a day of rain the events will be postpon ed one day and continued the next day. Only a continued heavy downpour will cause can cellation of any of the celebra tion plans. Coronation ceremonies for Queen-Elect Patricia O'Connor hold the limelight Thursday night and also mark the opening of the festival. Planned for that night also, is varied program, including re vues by two dance studios, ra dio impressions by Lyle Loren tz, and the appearance of the Cherryctte trio of Miller's de partment store. This trio con sists of Connie Cross, who re cently was named Miss Salem, and Patricia Zosel and Barbara Garrett. Opening the program will be a specialty revue by four students from Mcrlain Dancing school. Next to bs heard will ba Lyle Vote 168 to 165 Knocks Out Provision For 810,000 Units Washington, June 29 (IP) The whole public housing section was knocked out of the admin istration's vast housing bill to day subject to a later vote. With the aid of some south ern democrats, republicans mus tered a 168 to 165 vote to knock out on the house floor a provi sion of 810,000 public housing units to be financed by annual federal payments of $308,000,- 000. The rallying cry of the oppon ents of the provision was "soci alism." The action could be reversed later. But even so, it-was a tremen dous blow to the bill which has been the center of a tough fight all week long. Rep. Reece (R-Kas) offered the amendment to strip the bill of the public housing section. On a standing vole his pro posal was barely shy of approv al. It got 135 votes and a count of the opposition showed 136 The members paraded down the middle aisle to be counted on a teller ballot. That changed the result by a three-vote margin. The GOP maneuver showed surprising strength. A previous republican effort merely to cut down the size of the housing program had failed by a size able score. Before the public housing provision was voted down the bill already had been cut down to senate size from 1,050,000 to 810,000 units and from $400, 000,000 to $308,000,000. (Concluded on Page 5, Column 8) Warning Given By Ellsworth Washington, June 29 (IP) Rep Ellsworth (R., Ore.) says that passage of housing legislation and other "welfare state" propos als "may touch off a financial explosion that will blast free governments and personal free dom off the face of the earth Speaking to the house yester day during debate on the housing bill. Ellsworth said: "By pasage of this housing bill, by miserable failure of this con gress, to date, to reduce the fan tastically high cost of govern ment, by passing the other wel fare state spending legislation de manded by the president, we are lighting a fuse which may touch off a financial explosion that will blast free governments and per sonal freedom off the face of the earth." Ellsworth said that as "I sit in the house day after day and see no slightest indication on the party of the majority in congres or on the part of the president to cease or at least slow up our march toward national bank ruptcy I am appalled.' He said whatever the cost of the housing bill "it means taxes taxes, taxes for 40 years oi more." Ellsworth said that the people of Europe have aligned them selves with the United States and if the notion fails them "they must turn toward communism. $500,000 Lucky Store Fire San Bruno, Calif., Juno 29 VP) The huge Lucky store on El Ca mino burned early today with a loss estimated at $500,000. It was the largest store in the Lucky chain of grocery and market un its. board and committees continue weather are to have no effect on and Mrs. L. M. L. Iorcnz of route 4, Salem, giving present day radio program impressions. Lorentz, a graduate of the Salem Senior high school studied radio at the former Salem Jun ior Playhouse and before going to Chicago for four months of private study with the Jack Podcwells, radio performers, did a program for one of the local radio stations. Following his studies in Chicago he toured North Carolina with the Saulinc Players for two months. Thurs day night he will re-enact well known dramatic moments from radio and give his imprcssionsi of several familiar radio pro grams. Armstrong School of the Dance, which since the revival of the Chcrryland Festival has presented a revue as part of the annual celebration, will again present a revue Thursday night This to be the final event on that night's program. (Concluded on Pact f, Column 1) AFL and CIO Resign ed to Keep T. H. Law Until 1950 Election Washington, June 29 VP) Thi AFL asked today that the sen. ate kill the administration's la- bor bill, now amended to em brace the Taft-Hartley law's In junction powers. AFL President William Green wrote Senator Lucas of Illinois the democratic leader, that th action of the senate in addinj "national emergency" injunc tion authority to that bill makei it "absolutely unacceptable. CIO officials, stunned by yes. terday's senate action, alread) had resigned themselves t keeping the Taft-Hartley act foi two more years. Arthur Goldberg, CIO general counsel, told a reporter "wt might as well face the fact thai we have the Taft-Hartley acl until after the 1950 elections." Ask Debate Be Ended Green said a meeting of AFL union representatives this morn ing unanimously approved s move by Lucas to bring a speedy end to the senate labor debate. "We feel that amendments designed to make the Taft bill more palatable would be use less and a waste of time," Green wrote Lucas. Lucas had Green's letter read to the senate by a clerk. Sena tor Taft (R., Ohio), who got in the injunction amendment, 111 into Green in a speech. Taft Raps Green Taft said the AFL president's letter was "probably the mosl presumptuous statement thai any individual has ever made to the senate of the United States." Mr. Green is undertaking to veto the senate bill before it ii passed." Taft spoke also of Greens "orders to those in the senate who want to follow the AFL." That brought from Lucas a dec laration that "there isn't any labor leader going to lay down a program for the senator from Illinois." Taft said he is out to make im provements in the Taft-Hartley law that labor should "wel come." For Campaign Issue Taft said labor leaders are go ing to reject his proposed im provements in order to make the Taft-Hartley act an issue in the next election campaign. "But they can't make an is sue of it," the senator exclaim ed. "We can point out that in every complaint they made, we listened to them and made changes." Taft is up for re-election in 1950. (Concluded on Page 5, Column 8) Brown's Show Window Looted For the second time in three months, a show window at Brown's jewelry store on North Liberty street was smashed in Wednesday by a thief who ap parently made a clean getaway with loot valued at $210.25. A detective's report of the af fair timed the event at 1:36 a.m. when a rock was heaved through the south display window at the west entrance to the establish ment. A total of five rings and a wrist watch were snatched by the thief before he slipped away. Although a police prowl car was only a block and a half away at the time, the escape was success ful. The window looting Wednes day differed from the affair on March 21 in that the alarm sys tem was in operation and brought all of the police cars to the scene within minutes. A greater quantity of loot es timated at $5,000 was taken in March in view of the fact that the jewelry store had a costly display of diamonds in the win dow during the spring treasure hunt in Salem. Despite the fact that Dr. Harry A. Brown, owner of the shop, posted a reward for informa tion which might lead to the identity of the treasure trove burglar in March, no clue was ever reported to police. Boise Picked for 1950 Safely Meef Portland, Ore., June 29 lU.R) Boise, Ida., will be site of the 1950 conference of the Western Safety Council, the board of governors announced here today. The board accepted the invi tation of Gov. C. A. Robins to hold next year's session in the Idaho capital. The council was completing its 1949 conference here today. Paul V. Black, safety director of the Idaho Compensation com pany, Boise, was elected presi dent of the council last night.