2 Capital Journal, Salem,
End Deadlock on
Marshall Plan
Paris, July 1 (U.R) A com
promise financial agreement to
ease European trade under the
Marshall plan broke an Anglo
American economic policy dead
lock early today.
Nineteen European nations
trading under the Marshall plan
approved the compromise in
principle at 2 a. m. (9 p. m.
Thursday, EDT) after eight
hours of stiff negotiating, prin
cipally among the United States,
Britain and Belgium.
The agreement will be incor
porated into a new intra-Euro-pean
payments agreement to re
place that which expired las',
midnight. Experts of the 19
European nations will meet at 5
p. m. (noon EDT) to put the
agreement into writing.
To contribute to the comprom
ise, the United States dropped its
demand that proceeds of Mar
shall plan trade be convertible
Into dollars. Britain, for its part,
abandoned its stand for bilateral
trade only.
The agreement provided that
Marshall plan nations grant each
other may be used to shop in any
member nation rather than ex
clusively in the country which
makes the grant.
Ford AsksUAW
To Skip Raise
Detroit, July 1 VP) For a
second time the Ford Motor Co.
today asked the CIO United Auto
Workers to skip their wage and
pension demands for 18 months.
Ford, repeating its wage
freeze proposal, told the union it
was "convinced" that the com
pany plan was the "best possible
answer to our problem."
There was no immediate reply
from the union.
On the first occasion, June 18,
the UAW rejected the proposal.
At that time union President
Walter Reuthcr termed it "un
realistic" and said also that it
was "counterfeit security" for
Ford's 108,000 workers.
In a letter to Reuther today
Ford Vice President John S.
..Bugas repeated arguments which
he said were "In the interest of
employe security."
"We must continually remind
you," Bugas said, "that our
ability to provide well-paid jobs
depends on our ability to sell
automotive products."
The Ford statement came on
the heels of Chrysler's refusal to
discuss $100 monthly pensions
and I health and welfare pro
gram with the UAW.
Beran Spurns
Offer of Guard
Prague, Czechoslovakia, July
1 (U.R) Archbishop Josef Beran
has spurned the communist gov
ernment's offer of a "protective
guard.
Reliable sources said Vladimir
Houska, in charge of govern
ment agents in the archbishop's
palace, offered to supply a
guard if Msgr. Beran would
take his usual summer vacation
at a castle outside Prague.
The archbishop was said to
Bave refused. He let it be known
tnai ne intends to remain in
Prague because of mounting
church-state tension.
Msgr. Gennaro Verolino, Va
tlcan representative in Prague
and another target of the state's
anti-church campaign, Inform
ed the Czech foreign office yes
nrHnv flint ho ennn will Inaira
I .....V .... IT..
f Prague.
A . I U- . l
n i. tuc oaiuc nine, jiu fjiuiu&l'
ed against his treatment by po
lice during a recent five-day
tour of Slovakia, scene of anti
government Catholic riots last
Sunday.
Msgr. Verolino said he was
ordered to the Kosice police
station, where his chauffeur and
a priest accompanying him were
questioned. He said he was un
able to get gasoline for his car
and had 'o spend two nights in
the automobile because he could
not obtain a hotel room.
Berlin Faces
Bankruptcy
Berlin, July 1 VP) Berlin was
threatened with municipal bank
ruptcy today as a hangover from
east-west strife.
A prospective budget deficit
of 321,000,000 west marks
($96,300,000) plagued the allied-recognized
city government
just as its railway strike trou
bles ended.
Soviet-con trolled elevated
passenger trains resumed oper
ation in western sectors early
DANCE
SATURDAY NIGHT
Aumiville Pavilion
Music by The New
Wonder Volley Boyt
In Aumsville
9:30-12:30 DST
10 Ml. 8. of Salem
Oregon, Friday, July 1, 1949
today, 41 days after they were
tied up by the strike of an anti
communist rail union.
The railway management said
interzonal traffic between Ber
lin and western Germany was
being restored gradually, with
pre-strike schedules to become
effective again Monday.
After two days of harassing
tactics, Soviet autobahn guards
began passing 'nto Berlin all
west German truck cargoes
which had been cleared at the
Russian zone frontier.
But the Russians tightened a
blockade on foodstuffs which
east German farmers were try
ing to slip into allied sectors to
sell for west marks, now worth
more than five times as much
ns east mirks.
City officials blamed Berlin's
"nnuclrlQ ight on the conse
. .-.''fl year-long "fight for
V tVi"
against the Soviet un-
ion.
Ex-wife of Hiss
Can't Testify
New York, July 1 VP) Fed
eral Judge Samuel H. Kaufman
today refused to permit the for
mer wife of Communist Ger
hart Eisler to testify in the Al
ger Hiss perjury trial.
The judge made his ruling af
ter nearly two hours of discus
sion between opposing counsel
in the judge's chambers.
The prospective witness, Mrs.
Hede Massing, was to have tes
tified for the government in re
buttal to Hiss' testimony. Her
former husband, once described
as America's number one Com
munist, recently fled this coun
try as a stowaway on the Polish
liner Batory.
Her present husband Is Paul
Massing, a writer and lecturer
in sociology at Rutgers univer
sity. Hiss, in his testimony, had as
serted that he had never met
Mrs. Massing.
John Foster Dulles, who ap
peared as a rebuttal witness yes
terday, contradicted a part of
Hiss's testimony.
Taking the stand shortly af
ter the defense rested Its case,
Dulles testified yesterday that
last August he asked Hiss to quit
as head of the Carnegie endow
ment for international peace.
Hiss had testified earlier that
Dulles never made such a re
quest.
Hawaii Strikers
Reject Offers
Honolnlii. .Tiilv 1i m Hnrnl
lu stevedores overwhelmingly
turned down n nlnn -fnr inrilno
Hawaii's crippling waterfront
sirine yesterday. Their com
rades elsewhere in the islnnric
are expected to follow suit to-
aay.
The peace plan, advanced
hopefully by a fact-finding
ooara and accepted reluctantly
by employers, was batted down
826 to 5S.
The board proposed a raise of
cents an hour. Trip wnrlrnrs
in striking fi2 rinv, mm WAmnnH-
ed 32 cents on top of their cur
rent nourly wage of $1.40.
Wearily, Acting Gov. Oren E.
Lonff SBid ha WnillH oclr .ha
sides to resume collective bar
gaining, "burcly, there must
be some wav this strlk pan ka
ended," he added.
The CIO International Long
shnrempn'a nnri w
men's union, however, Indicated
it was preparing for a long strug
gie.
Harrv Bridacs. nninn nrnei.
dent, Is flying from San Fran
cisco lueseiny or Wednesday to
take over personal direction of
the strike.
ILWU Official Henry Schmidt
declnrcd if violent attempts were
made to break the strike, long
shoremen along the whole Pa
cific coast would shut down.
Stevedores cheered a message
from Bridges saying $2,500 was
coming nt once for strike relief.
More financial support was
promised from Portland and San
Francisco stevedores.
NOW SHOWING Oi'KN 6:45
1 Rosalind Russell 1
W Silver touch
H L, Leo Gton Cliirr Trevor j
H Sydney Crwnslrwi
" to WO . M
Co-Feature
"BELLE OF THE YUKON"
In Technicolor
Randolph Scott Diana Shore
Gypsy Koae I.e - Bob Burns
HOLLYWOOD KIDS' CLUB
TOMORROW
Doom Open I p.m. for Rpfclal
Kldi' Matinee
State l'roirram Prlies
Cartoons Serial
Special Matinee Feature:
"GALLOPING THUNDER"
Durnaito Kid - Smiley Burnette
SING A SONG OF SIX PANTS'
with the Three Stoofea
Also
BENSON'S BIKTHDAY CAKE
For
Fred Pelletler
Dlanne West
Darlene Lane
Billy Jo Kllmak
Nancy Clemoni
Valerie Jeasop
John Moore
Trudy Allen
Judith West
Edward Martull
Donny Goodman
Lawrence Greene
Ere. Show font. After 6.M
Bradley Visions
Army Tension
Ft. Leavenworth, Kas., July 1
VP) Gen. Omar N. Bradley said
today this country must "antici
pate a long period of tension" in
its military planning.
The army chief of staff, in a
talk delivered before graduation
exercises at the Command and
General Staff college here, said
"militarily speaking, the situa
tion is as stable as it is going to
be for some time to come."
"In the four years since V-J
day," he said, "I think the ad
vantage has swung to our side
and that the aggressor, who was
once a friend, is now on the de
fensive. "Rather than expect a long
period of friendly cooperation,
however, we must anticipate a
long period of tension, with al
ternating day-to-day improve
ments or setbacks, which must
not be allowed to unstabilize the
long-range plans for security."
The general spoke before a
class of 41$ officers 365 from
the United States and 51 from
other countries.
Schools Boost
Jobless List
Washington, July 1 VP) The
June wave of school-age youths
seeking jobs boosted unemploy
ment to a seven-year high of 3,
778,000. Reporting this today, the cen
sus bureau said two out of
three of the new job-hunters
managed to find work. So the
number of employed also rose,
reaching 59,619,000. This is tops
so far for 1949 and barely below
the one-time goal of "sixty mil
lion jobs."
Compared with May, . these
were the basic changes in June:
The labor force increased by
1,415,000, employment went up
925,000 and unemployment in
creased 489,000. I
The June total of jobless was
the greatest since the 4,000,000
figure in February, 1942.
The statistics looked better
than some government experts
had anticipated. They had fear
ed the 4,000,000 mark in unem
ployment might be topped in
June.
Of the 925,000 additional jobs
developing in June, 721,000
were on farms and 204,000 else
where. The increase in non-farm jobs
was a cheery development. It
ended a steady decline that be
gan in December and has been
the main point of concern over
the labor situation since the de
cline reflected reduced indus
trial production and factory
worker layoffs.
Mrs. Scott Hostess
Silverton Mrs. Peggy Scolt,
R.N.. emnloved as nffiep
tionist for many years in Silver-
ton, ana planning to make her
home in Portland with a sister,
Mrs. Helen Hammond within a
short time, entertained in a
luncneon at her West Main
street home for fourteen of her
former business associates. Mrs.
Scott's sister, Mrs. Hammond, is
in poor health.
Green Guards Alerted
Almost 20,000 Green Guards,
Who are from 8 to IB venrj: nM
are on the alert to prevent fire
works from setting fires in dry
grass and forest lands.
ST. PAUL RODEO 5
DANCE
with the new i
"TOPHATTERS"
Popular
Oregon Swing Band
FRIDAY, JULY 1st
and Dancing Nightly
July 2nd, 3rd & 4th
ST. PAUL RODEO
PAVILLION
t
3fV
I
14th ANNUAL
ST. PAUL
RODEO
: JULY 2-3-4 :
: st. paul, ore. :
. Thrills! Spill!
Dancing Nightly!
; $7,000 Mill MQNIY
Top Cowhands
Tickets Now on Sale
STEVENS & SON
- ' ' - . .-. i - ' : f
'i
Champion Fire Team Entertains Entertaining on the court
house square at noon Friday was this champion drill team
from the Salem fire department. The team won the state
title at Baker last year. The personnel is Len Jasvey, Don
Morley, Allen Snyder, Tom Stettler, Jerry Hall, and Clyde
Bucholtz. They will entertain at the Fair grounds Saturday
night. '
Agency Funds
Assures Pay
Washington, July 1 VP) Elev
enth-hour congressional action
assured a number of govern
ment agencies today of operat
ing funds at least through this
month.
A house-adopted resolution
providing the money won sen
ate approval yesterday and was
promptly signed by President
Truman.
It was necessary because con
gress has not yet completed ac
tion on regular money bills to
taling about 75 percent of the
Truman budget for the 1950 fis
cal year which began at mid
night.
Agencies depending on these
fund now will be able to con
tinue spending for one month
at the lowest rate mentioned by
the house, senate or the budget.
Meanwhile the veterans ad
ministration said half a million
World War t II veterans; in
schools and colleges will have to
wait a ifew.'days or their sub
sistence checks JKcause of a
temporary shortljp in agency
funds.
Czechs Beat Red
Police to Death
Prague, July 1 W) At least
two communist policemen were
beaten to death and an undeter-
DANCE
JULY 4TH
Aumsville Pavilion
Music by Tommy and
His West Coast Ramblers
In Aumsville
9:30-12:30 DST
10 Miles South of Salem
NEW TODAY -
JOAN
CRAWFORD
FLAMINGO
NIW WAINtt
MX Ha,, ROBERT w HOC Ft
,rs CUMS TO
r A
tfCNAHO
W ID MARK
UONIl
BARRYMORE
MAM
STOCKWEUg
CARTOON NEWS
rKtMfi L DOfS IT AGAIN j
12 iVX P I '1 fM M'lila) 'i every booV
M) .wish
in r w i ammo m. wihi
1
mined number Injured in riot
ing between Roman Catholic
faithful and government adher
ents in Slovakia recently, ac
cording to reliable ' reports
reaching high diplomatic sources
here.
These sources added that the
situation in this intensely-Catholic
province now appeared
quiet on the surface." But they
were inclined to give credence
to reports that at least small
partisan bands of Catholics had
been formed there to stage vio
lent resistance to the commun
ists in the church-state fight.
To hush up the situation, dip
lomatic quarters said, the gov
ernment was restricting travel
into Slovakia.
Other developments In the
church-state war were:
1. Disclosure that the Czecho
Slovak foreign ministry so far
has ignored a protest delivered
by the diplomatic corps here
about the forcible detention ear
lier this week of Msgr. Gennaro
Verolino, Vatican diplomat.
2. Msgr. Josef Beran, arch
bishop of Prague and the na
tion's primate, is staging a vir
tual "sit-down strike" in his
palace, refusing government
suggestions that he leave for a
summer holiday,
McCall Assumes Duty
Thomas Lawson McCall, Port
land radio news commentator,
assumed his duties today as pri
vate secretary to Governor Doug
las McKay.
TTTTTTTT1S
New
Woodburn
PIX
Theatre!
Oregon
O-SO-EASX SEATS
Thu.-Fri.-Sar.
June 30, July 1-2
RED CANYON
in Technicolor
Also
EIGTCWN SCANDAL
2 SMASH HITS!
AND!
"ggrri jj
76 Defendants
In Optical Suit
Chicago, July 1 VP) Federal
Judge Walter J. Labuy today let
the government name 76 new
defendants in its anti-trust suit
against the Bausch and Lomb
Optical company.
The suit accused the optical
firm and its four affiliates with
paying rebates to eye doctors
(oculists) to aid sales of eye
glasses and other optical goods.
The suit, filed in 1946, also nam
ed several thousand eye special
ists as defendants.
The new defendants named to
day are newly-organized optical
goods firms and their owners.
The government contended the
firms were all set up by Bausch
and Lomb after the suit was fil
ed in 1946.
Attorney Thomas Tyler, rep
resenting Bausch and Lomb, ob
jected to naming of the new de
fendants. He said New York
attorneys for Bausch and Lomb
are now conferring with depart
ment of justice officials in
Washington about a possible out
of court settlement of the suit.
The new defendants included
Lyall J. Gardner, 315 Eugene
Medical Center building, 140
East Broadway, Eugene, Ore.;
Kenneth H. Robinson and John
W. Henson, 430 Medford Center
building, 33 North Central
street, Medford, Ore.; C. E.
Swan (Physicians' Optical Serv
ice) 236 Morgan building, 720
S.W. Washington street, Port
land, Ore.
Sherman Optical company
1520 Fifth avenue, Seattle, and
John Sherman, president, 1520
Fifth avenue, Seattle; Gen L.
Thavis, 403 Paulson building,
Spokane, Wash.; Fred L. Wahl
ers, 417 Medical Arts building
740 Helens avenue, Tacoma,
Wash.
WAA Goes Out
Of Surplus Sales
Washington, July 1 VP) The
government closed up shop to
day on what once was the na
tion's biggest merchandise bar
gain counter.
The war assets administration
went out of business after han
dling disposal of surplus war
property with an original price
tag of $27,000,000,000 during its
often hectic four-year existence.
Final agency records showed
a return to the treasury of about
$4,250,000,000 from WAA trans
actions. That's about 22 cents
received for every dollar spent
on the mountains of combat-essential
commodities and proper
ties which ranged from multi
million dollar war plants to
canned beef.
The thousands of war left
overs in which the agency did
a land office business through
regional salesrooms from coast
to coast are now largely in pri
vate hands.
DANCING NIGHTLY
at
ST. PAUL RODEO
FRI.-SAT.-SUN.-MON.
Music bv
TOP HATTERS
Open-Alr Pavilion
IF ITS AT THE EIAINRE
ANEW
IN HIGH EXCITEMENT
FROM
WARNER BROS!
fTom'nq JOEL
RA0UL WALSH
1 ,iili!uE
: plEW TODAY!
HEROIC W J iSv0A vA Their day
VASTHESS Svi-ViA. of days
Of THE Vv &jyk becomes a
aI vv YJea,h-hunt
t II itftbl. VvthkNv flVRockies,os,
1 ..IBl
iiminm itii i rov
Writttn oy jonn insi ma tamuno
Still on the books, however.
is a $1,829,000,000 original cost
inventory. Officials said the fig
ure mainly represents real es
tate now leased to private com
panies and individuals surplus
property which ultimately will
be sold.
These future transactions as
well as disposal of any odds and
ends of remaining surplus prop
erty now become the respon
sibility of the newly - created
government services administra
tion which President Truman
yesterday signed into law.
Floating Bridge
Open,
, Seattle
Seattle, July 1 VP) A plain
nickel, a simple five-cent piece,
opens the Lake Washington
floating bridge, one-time engi
neering wonder, to free use to
morrow.
The lta-mile long span, float
ing on concrete pontoons and
bringing a trans cqntinental
highway into the city, will be
paid for in full. All tolls will be
taken off, 18 years ahead of the
time the state and private finan
ciers counted on.
Nine years to the day since
the bridge was first opened to
traffic, July 2, 1940, Gov. Ar
thur B. Langlie will snip a rib
bon. He and other state and ci
vie figures will then get the first
free ride across the lake.
To Miller Freeman, publisher
of industrial magazines and
Bellevue banker active in east
side Lake Washington activities,
has been given the honor of pay
ing the last nickel. He will pass
it along to Governor Langlie.
The financing of the bridge pro
ject, including approaches and
tunnels and relocation of part of
the cross-state highway, was
through a $3,934,875 PWA grant
and state toll bridge revenue
bonds for $5,900,000.
Charles Andrew, chief con
sulting engineer in its construc
tion and also chief engineer pre
viously for the San Francisco
Oakland bay bridge, said today
the bridge should last indefin
itely if properly maintained.
Acheson to
Consult Senate
Washington, July 1 VP) Sec
retary of State Acheson has as
sured senate foreign policy lead
ers they will be consulted be
fore any decision is made on
recognizing a Chinese commun
ist government.
State department officials
said today word had been giv
en Chairman Connally (D-Tex.)
of the senate foreign relations
committee that Acheson will
consult fully with the committee
on the recognition question
when it arises.
There has been recent criti
DOUBLEHEADER
BASEBALL
Tonite ot 7 O'Clock
SALEM SENATORS
vs.
YAKIMA
Waters Field
25th and Mission
IT'S THE BEST SHOW IN TOWN!
n. nww
VIR6INIA "vllf1
It Cartoon
cism from some senators of ad
ministration policy toward Chi
na. Twenty-one senators sent
president Truman a protest last
week against establishing dlplo-
atic relations with the expect
ed communist regime.
There has been no reply yet
from the president but presum
ably his response will be based
on the .promise to consult and
the fact that no decision has
been made as yet.
Postwar Board Dies
The state postwar readjust
ment and development commis
sion, died today. It was created
five years ago, and has been
headed by John W. Kelly. The
recent legislature decided to end
it.
The flag should be displayed
daily, weather permitting, on or
near the main building of every
public institution.
Cottonwoods
PRESENTS
IN PERSON
Eddie Kirk
and His
WESTERN
ALL STARS
Saturday, July 2
Dancing 9 to 1
Mat. Daily From 1 P. M.
NOW SHOWING!
WHIMM EUrOTT ANDY DEVtNE
JACK HOtI POBKUT TUC1II
THRILL CO-HIT!
Opens 6:45 P. M.
MOVED OVER!
Now Showing!
& James Fennimore
Cooper's
"THE PRAIRIE"
ALAN BAXTER
LENORE AUBERT
NOW! OPENS 6:45 P. M.
Maria Montei
"TANGIER
-
Franchot Tone
"RETURN OF
VIGILANTES"
KABTOOI
KARNIYAX
Tomorrow
at H:J with
Ret. Bhowt
IjfTonUerdajr i
I Free Shetland Poor f
I I Rides for the Klddlei 1
I I Starting Dkllr at fl p.ra I
I I Burt Lancaster I
I I Yvonne DeCarlo
nl "criss cross" n
III Roy Rogers
ill "GRAND CANYON
TRAIL" COLOR
M arjori Percy
MAIN KILBRIDE
'