V
C aoita!
THE WEATHER HERE
CONTINUED FAIR and warm
tonight and Wednesday, except
for low cloudiness and fog along
coast in early morning. Lowest
temperature expected tonight,
52; highest Wednesday, 88.
' Maximum yesterday, 85; minimum te
day, 60. Total 24-honr precipitation, 0; for
month, 0j normal, .24. Season precipita
tion, 41.611 normal, 87.19. Rirer helfht,
HOME
EDITION
k4lWa,
61st TTear, No. 164
Entered tu second eltui
matter Rt Stlem. Orwoit
Salem, Oregon, Tuesday, July 12, 1949
(20 Pages) Price 5c
Group Named
To Study Pay of
City Employes
' Council Approves
Budget Calling for
Total of $2,284,855
A special committee of three
members of the city council
with City Manager J. L. Fran
zen as ex-officlo member, will
make a study of salaries paid by
the city, for the purpose of re
vision if found inequitable.
This came out of argument
Monday night about the 1949
1950 city budget, which was
given final approval in the to
tal of $2,284,855.16. Mayor Rob
ert L. Elfstrom has not yet ap
pointed the committee.
Alderman Tom Armstrong
made the motion for a special
committee. It was opposed by
Alderman David O'Hara, who
said it was a "grave deception
to publish the budget for infor
mation of ' the taxpayers and
then change the figures." He
said he would favor a study
with reference for the 1950-1951
budget.
Police and Firemen's Fay
One of the schedules for study
will be the salaries of police
men and firemen, which remain
in the new budget with police
men to be paid a margin of $20
on their monthly paychecks
above the firemen, on account
of the difference in the amount
the city appropriates under the
firemen's retirement pay plan
and under the state plan used
by the police. ,
An analysis of the two sys
tems made for the mayor by S.
W. Starr of the state accounting
department showed that, for
prior and current service, the
amount appropriated by the city
for each member of the fire de
partment exceeds by $25.74 the
amount that would be paid If
the same number of firemen
were under the state plan.
Band Concerts Restored
The council restored to the
budget $1800 for band concerts,
- and restored a $210 item to pay
a substitute judge while the city
judge is on vacation. It refused
to restore $500 auto expense for
the city manager. Alderman
Armstrong moved its restoration
and Alderman Dan Fry objec
ted that it should be on a mile
age basis, not a flat amount.
Armstrong then moved it be 10
cents a mile, to be paid from the
emergency fund, but inquiry
showed that the state allows 6
cents, and a resolution will be
brought in for that amount.
The total of the city budget
approved Monday night is $2,
284,855.16. It is estimated that the prob
able receipts of the city from all
sources, Including unexpended
cash balances on hand June 30,
1950, wiU be $1,712,535.
$326,094 by Taxation
The amount of money neces
sary to be raised by taxation for
the general expense of the city
government is $326,094.16,
which constitutes the general
fund.
(Continued on Page 8, Column 8)
Bus Fares in
Salem Raised
The state public utilities com
missioner Monday signed an or
der permitting City Transit
Lines to increase fares in Salem
and suburbs.
The single zone fare is in
creased from 10 cents, or three
tokens for 25 cents, to a straight
10 cents. The two-zone fare is
increased from 15 cents to 20
cents, or two tokens for 35 cents;
and inter-zone 20-r 1 d e indivi
dual student books for $1.20 to
50-ride individual' student books
for $5. Also a three-zone fare of
one token plus 10 cents is es
tablished. The order says the company's
operations show heavy losses in
Salem and vicinity.
"Operations at Salem," it
says, "show losses for the months
of January, $2214; February,
$4001; March, $3040; April,
$3739; and May, $4371.
"The loss for the first five
months of 1949, and the conti
nual loss anticipated," says the
order, "make it imperative that
petitioner have relief."
R. J. Davidson, Salem mana
ger for City Transit Lines, said
provision had been made for
customers to use up the tokens
they now have on hand. In the
city one of the old tokens plus
2 cents will buy a fare, and in
the suburban zones two tokens
plus one cent. Or the tokens may
be redeemed at the company's
office at three for 25 cents in
multiples of three.
1 zt- m-?& in
Their First Swimming Lesson Youngsters in the pool at
dinger field received their first swimming lesson from John
Fairbairn, swimming instructor for Aberdeen, Wash., schools,
engaged by the Red Cross and the city playground adminis
tration to teach Salem youth in the learn to swim campaign
being conducted here. The campaign will be of 10 days' dura
tion and boys and girls six years and older are invited to
receive lessons in Olinger or Leslie pools.
Billy Haynes Captured
In New Mexico Wilds
Santa Fe, N. M., July 12 ( -
for four days in a search over mountains of central New Mexico,
was captured last night 150 miles south of here.
Hubert Beasley, state police chief, said Haynes, alias Bill Brady,
was cornered in a stolen gray
;
Blockade Stalls
Berlin Trucks
Berlin, July 12 JP) Russia's
little blockade" of Berlin piled
up trucks at Helmstedt again to
day, x; -i ......,
Truck traffic to this four-pow
er city, 100 miles inside the Sov
iet zone, was banned for the
third day except for four trucks
an hour allowed to pass over the
autobahn (super highway) from
Helmstedt in the British zone.
About 500 Berlin-bound Ger
man trucks were tied up this aft
ernoon at the Helmstedt check
point on the Soviet zone frontier.
Six British army trucks, how
ever, were cleared quickly by
the Russian outpost.
There has as yet been no Rus
sian explanation, although the
Soviets had told the British they
would send a letter today set
ting forth the reasons for -the
new restrictions.
An indication of what the ex
planation might be was given in
the official Soviet army newspa
per Taegliche Rundschau.
The paper printed a dispatch
from the Soviet-licensed news
agency BPD quoting informed
circles to the effect that German
truckers going to Berlin through
the Russian zone had frequent
ly left their prescribed routes to
buy foodstuffs with westmarks
which are banned in Russian-occupied
Germany.
Quake Hits Hiroshima .
Tokyo, July 12 VP) Kyodo
news agency reported this af
ternoon a strong earthquake
struck atom bombed Hiroshima.
No serious damage was report
ed immediately. A number of
breaks in power lines disrupted
service.
Old High School Building
For County Health Office
County Judge Grant Murphy reported to the county court Tues
day that inspections made by him and Dr. W. J. Stone, county
health officer, of possible quarters in the old Salem senior high
school building for the county health department had resulted
in Dr. Stone making his selection and if suitable arrangements
can be made this will mean an"
early removal of the county
health department from its pres
ent location in the Masonic tem
ple. The rooms desired by Dr.
Stone are on the second floor of
the old high school directly over
those now occupied by the wel
fare department on the Church
street end of the building.
The hitch now is that in allo
cating rooms in the building for
use of county offices when the
move is made there to make way
for new courthouse construc
tion, the rooms now sought for
the health department had been
assigned to the sheriff and dis
trict attorney.
County Commissioner Roy
Rice wiU interview those offi
William (Billy) Haynes, sought
sedan at a road block near
Bingham, N. M., on US highway
No. 380.
State policemen, sheriff's dep
uties and border patrolmen took
part in the capture.
Al Hathaway, state policeman,
said Haynes admitted his ident
ity. Haynes was carrying a re
volver at the time of capture.
The tip on his whereabouts
came from a man by the name of
Wells,. , who. saw Haynes in ,8
store. ; then later a motorist re
ported seeing Haynes. Road
blocks were set up.
Haynes was wanted by fed
eral, state and county officers.
He had been charged with aid
ing in a jail break last month
at Corvallis, Ore., auto theft and
was wanted for questioning
about a Utah post office rob
bery. Marshall E. Huff, whom
Haynes reportedly helped es
cape from the Benton county,
Ore., jail June 4, is in jail at
Albuquerque.
Haynes was tracked through
the mountains three days. He
slipped past the dead-tired of
ficers yesterday, and stole the
sedan in which he later was
trapped, Beasley said.
250 Acres Timber
Burned Near Bend
Bend, July 12 VP) A care
taker's cottage at the municipal
dump here and 250 acres of cut
over timberland were burned
last night before flames were
brought under control.
Lumber mill employes of the
Shevlin - Hixon and Brooks -Scanlon
companies joined for
esters, city firemen and volun
teers in combatting the blaze
that spread from the dump.
Firemen said a favorable wind
prevented the flames from
spreading into the city after
jumping the highway.
cials to see if a reallocation can
be made satisfactory to them so
the health department can use
the quarters. If so it is expected
the switch over by the health de
partment will be made this sum
mer long before other county
offices move to the building.,
The court considers it very de
sirable that the health depart
ment make the change if ar
rangements are feasible. It is
considered preferable as a Io
cation to be reached by clients
of the office, will alleviate the
parking situation both at the
courthouse and for health de
partment attaches and also fur
nish room for necessary expan
sion which will be required un
der the Kellogg foundation grant
for nurses' training.
500 Enroll in
'Learn to Swim'
A total of 509 persons were
enrolled in the "learn to swim"
campaign of the American Red
Cross by Tuesday noon.
At Leslie pool the total had
been boosted to 186 when
classes opened Tuesday morn
ing. At Olinger pool, 303 reg
istered Monday afternoon and
that total also was expected to
be higher when classes contin
ued there Tuesday afternoon.
Twenty persons registered for
the life-saving course at Leslie
last evening.
Children may still enroll for
the morning and afternoon
classes at Leslie and Olinger,
Wednesday, John Fairbairn,
who is conducting the course,
pointing out the primary Pur
pose is to learn to swim, there
fore, all children who possibly
can snouia enroll in the classes.
No Pay Raises
In British Crisis
Scarborough, Eng., July 12 (P)
The head of Britain's biggest
labor union told its members to
day they cannot expect higher
wages while the nation is going
through its present economic
crisis.
Arthur Deakin, general secre
tary of the 1,300,000 -strong
transport and general workers
union, said at its biennial con
ference:
"It is no use fooling you at
this time and saying you can
promote or succeed with extrav
agant or even modest wage
claims in some of the better paid
industries with which we are
dealing.
"I am going to be brutally
frank. I doubt whether at this
time we can get wage increas
es at all.
"I am going to be no party
to leading members of this or
ganization into the belief that we
can do those things in the face
of the circumstances now con
fronting this country."
After hearing his speech the
760 delegates passed a resolu
tion urging tax relief, price re
ductions and a cut in profits to
hold down the cost of living.
Widow Dies
After Rosary
Woodburn, July 12 Mrs.
Irene Lemery Meier, 69, died
suddenly Monday night after re
turning from recitation of the
Rosary ' held for her husband.
Otto Meier, who died last Sat
urday. The funeral service for Meier,
which was set for Tuesday of
this week, has been postponed,
and a double funeral for the
husband and wife will be held
Thursday, July 14, at 9 a.m. at
St. Luke s church, with inter
ment at St. Luke's cemetery.
Recitation of the Rosary for
Mrs. Meier will be held at the
Ringo chapel Wednesday eve
ning at 8 o clock.
Mrs. Meier was born on the
old home place near St. Louis
March 19, 1880, and had lived
all of her life in this vicinity.
She was the daughter of the
late Louis and Helen Gagnon
Lemery, early pioneers, who
were the parents of 15 children
Mrs. Meier was the last of the
family and the only survivors
are nephews and niece i.
56 Mki, 30 kkmi
h 2 Mirphne Cmshes
Control Board
rders Study of
State Taxation
A complete study of Oregon's
system of taxation by the state
tax commission together with
three other state officials was
ordered by the board of control
Tuesday.
A resolution outlining the
specific instructions for the tax
study was introduced by State
Treasurer Walter J. Pearson
and was adopted with the unani
mous vote of the board.
Designated to work with the
members of the tax commission
in the study are Harry Dorman,
state budget director, repre
senting the governor; S. W.
Starr, chief of audits, represent
ing the secretary of state and
Fred H. Paulus, chief deputy
treasurer, representing the state
treasurer.
Called Hodge Podge
Pearson, in presenting his res
olution, stated that the tax com
mission has a staff of experts to
put on the work and in addition
have information that has been
gathered in the past that may be
utilized.
"The state of Oregon now has
a hodge podge state tax set-up,"
he said, "and we should have the
results of this study on which to
base . recommendations to the
next legislature for a revision of
our tax system, including
come, inheritance and gift
taxes."
Governor Douglas McKay de
clared that he saw no omjection
to the resolution and felt that
,the board of control, should de-,
velop all the information possi
ble on the state's tax situation.
Continued on Page 5, Column 5)
Fight Depression
By Wage Hikes
Washington, July 12 (IP)
Controversy grew up fast today
over a ClO-sponsored economic
report which called upon the
nation to fight off a possible de
pression by means of wage
raises, tax reductions and public
works.
The CIO hired Robert R. Na
than, a consulting economist, to
analyze' the national situation.
His findings were issued here
yesterday at a big gathering of
reporters, cabinet members, sen
ators and others. Nathan has
written a second report on the
steel industry alone, for release
today in Pittsburgh.
Yesterday s report advocated
wage raises of different sizes
to fit the industry in all except
severely depressed" industries
and companies. It said many in
dustries can afford to raise
wages and cut prices at the same
time.
That pleased labor unions but
ran in the teeth of the conten
tions of those industrialists who
say higher wages would force
prices up and be bad for the
economy in this period of de
cline. Nathan argued that higher
wages greater purchasing
power is exactly what business
and the country need in order
to reverse the trend of decreas
ing employment and production.
President Truman, in an eco
nomic report to congress yester
day, had urged against wage
cutting, but had made no spe
cific call for big wage raises.
Many businessmen liked the
president's report better.
28 Months Girl
Ravished and Hanged
Ottawa, Ont., July 12 (P) A
28-month-old girl was ravished,
beaten and suspended nude
from a rafter in a shed behind
her home here yesterday.
The victim, Giselle LaChance,
daughter of Mr. and Mrs. Teles
phore LaChance, was reported
recovering in a hospital today.
Apparently she was seized
while at play near her home, re
moved to a loft above the shed
and later trussed with fishing
lines. A man's necktie was tied
about her throat and body. She
was suspended to a rafter but
her weight was carried partial
ly by the cords about her body.
This saved her from suffocation.
Truman Trying
To Avert Strike
In Big Steel
Washington, July 12 (IP) Pre
sident Truman may step per
sonally into the steel labor dis
pute today in an effort to head
off a strike of 500,000 CIO
steelworkers.
Charles G. Ross, White House
press secretary, said the presi
dent has the situation "under
consideration" and "there may
be a statement later in the day,
Asked if Mr. Truman might
create an emergency board to
look into the dispute, Ross said:
"I can't say what he may do.'
Deadlock Hopeless
Cyrus S. Ching, federal con
ciliation director, conferred with
management and union repre
sentatives for two and one-half
hours yesterday.
There were indications after
this meeting that the concilia
tion service's efforts had col
lapsed. CIO President Philip Murray
called the negotiations "hope
lessly deadlocked" and hinted
that only presidential interven
tion could avert a walkout.
Murray said he would recom
mend that the steel workers
strike this week-end.
May Invoke T-H Law
Ching said he reported to the
White House but made no re
commendations. His report was
to John R. Steelman, presiden
tial assistant.
A possible course open to Mr
Truman, is to invoke the nation
al emergency provisions of the
Taft-Hartley labor law. '
Under that law, the president
could declare that the disDute
threatens a national emergency
and appoint a fact-finding board
to investigate.
After the board reported, the
government could seek a court
order barring a strike for as
long as 80 days.
Eggs Advance Cent
In Salem Area
Eggs advanced another cent
here, Tuesday, the second boost
in two days.
Buying quotations listed
Tuesday, the second boost in two
days.
Buying quotations listed Tues
day included: Extra large AA,
60 cents; large AA, 59 cents;
large A, 57-59 cents; medium
AA, 54 cents; medium A, 52-55
cents; pullets, 32-40 cents.
Wholesale prices generally
run 5 to 7 cents higher above
the buying listings. Continued
slackening off in production,
normal at this season of the
year, and good demand are rea
sons given for the advances at
this time.
All other produce prices re
mained unchanged here Tues
day.
May Start Work on New
Court House Next Year
In calling for a meeting of the courthouse commission for Thurs
day afternoon of this week at
County Judge Grant Murphy said Tuesday if the architect is
able to give an estimate of the cost of the proposed new building
which doesn't go over the $1,200,000 mark it may be possible at
that meeting to definitely deter-
mine that work on the new
structure will start next year.
The judge said that with what
is available and the funds com
ing in under a special courthouse
fund set aside each year it is
possible to see where $1,200,000
would be available to go ahead
with the work. If the proposed
cost is over that figure, he said
that the court may have to stop
and draw its breath to see how
the balance will be financed and
make the necessary arrange
ments.
The meeting is called primari
ly for the purpose of going over
what may be the last list of
changes or alterations in interior
plans of the new structure, most
of them of a minor nature such
as adding doors or moving them,
adding closets, possibly switching
an office or two back and forth
and lobby changes or similar re
vamping of the present interior
plans.
45, including 14
Perish Near Bombay, India,
11 Die, 30 Injured in California
(By the Associated Press)
Fifty-six plane passengers were killed today and 30 others
injured in two airline crashes on opposite sides of the globe.
Los Angeles police said 11 persons were killed and 30 injured
in the flaming crash of a Standard Airlines plane near the sum
mit of Santa Suzanna pass. There were 48 persons aboard the
unscheduled C-46 flight.
A few hours earlier 45 persons, including 14 Americans 13
of them newspaper, magazine and radio reporters were killed
in the crash of a Dutch airliner near Bombay, India.
Los Angeles, July 12 (IP) j
Twenty-six bodies have been re
covered from the smouldering
wreckage of a commercial air
liner that crashed in Susanna
Pass with 4 aboard today after
a fist fight among some of the
passengers.
Ambulances came from every
little community in this sparse
ly populated section of the San
Fernando valley. They raced at
breakneck speed, up the tortu
ous dirt roaa to ine scene,
quickly loaded aboard the in
jured who had walked or been
carried the 300 yards from the
burning airliner, and headed
back down the one-way road.
Two hours after the accident,
ambulances still were coming
back, making return trips, but
this time to carry out the dead,
which searchers said included
two infants.
Bizarre Touch Given
Bodies were sprawled gro
tesquely into clumps of sage
brush, and over rocks. One sur
vivor was carried out with
broken back.
A. bizarre touch was given to
the rescue operations by the pre
sence of 30 bearded, robed fol
lowers of religious leader Krish
na Venta, who calls himself "The
Voice." They live in a stone
house not far away. In their
bare feet, they padded up and
down the rocky slopes bearing
stretchers. One of them identi
fying himself only as Brother
Paul, said he heard the plane
circling low over the hills, a
few minutes before the crash.
The engine seemed to be per
forming perfectly, he said.
Fire destroyed the pilot's ca
bin and the crash left only one
wing and the tail.
Cut Rate Plane
The plane belonged to Trans-
National Airlines and was repre
sented locally by Standard Air
Lines. It was one of the cut
rate transcontinental flights,
which carry passengers for $113
instead of the customary $181.
Pilot Roy White informed the
traffic control bureau at Bur
bank that a fight among passen
gers had broke out near River
side, Calif. He said he wanted
permission to set down at Bur
bank instead of the customary
destination, Long Beach. One
passenger was badly beaten, said
White, who did not give the
cause of the battle.
(Concluded on Page 5, Column 3)
1:30 p.m. daylight savings time,
Pietro Belluschl, architect
from Portland in charge, was in
Salem Monday and said as soon
as he had the interior plans on
paper as they finally will be it
will be possible for him to pro
vide a sketch of the proposed
exterior. A sketch heretofore
printed merely presented a bald
outline of the general appear
ance of the structure, without
windows or other features.
That this will probably be the
final meeting as to interior plans
is indicated by the fact that
every department head has been
instructed to have in writing be
fore the commission every plan
or detail he wishes to suggest
as to his respective department, a
sort of "file it now order or for
ever after hold your peace."
The judge has listed now most
of these suggestions which the
court has been working on for
several weeks.
Americans
Bombay, India, July 12 (IP)-
Thirteen American correspond
ents and 32 other persons died
today in the crash of a KLM
Constellation groping through
monsoon rainstorms toward a
Bombay island airfield.
The American reporters were
returning home from a tour of
Indonesia sponsored by the
Dutch government. It was the
second tragedy to befall planes
of KLM (the Royal Dutch Air
line) within three weeks. The
Constellation that carried the
reporters to Indonesia crashed
on its return trip to Europe,
killing 33 persons off Ban, Italy,
June 23.
The correspondents killed in
cluded Charles Gratke, foreign
Monitor, and two Pulitzer prize
winners H. R. Knickerbocker
and S. Burton Heath.
33 Bodies Recovered
A 14th American killed was
Lynn Mahan, representative of
a New York public relations
company. The others killed were
11 Dutch crewmen, Including
the general operations jinanager
of KLM at Karachi,, Burkisttyci;
17 other Dutchmen; two unmese-
and one Briton. I , '
Thirty-three bodies had Been
recovered by nightfall, approxi
mately 14 hours aftef the' crash.
The plane struck a rocky hill
top while approaching the Santa
Cruz airfield, 15 miles north of
Bombay. It hit a hill near Ghat
kopar, on the opposite side of
the 30-mile-long island from San
ta Cruz.
Monsoon rains beating down
on the scene of the crash ham
pered search parties. The first
to reach the area said wreckage
was strewn over a two-mile area
along a slope 800 feet high.
Plane Catches Fire
The plane caught fire and
charred trees on the rain
drenched hilltop. One eye-witness
said the bodies were so bad
ly burned that identification was
difficult.
The accident was said to be
the worst in India's aviation his
tory. The Indian government be
gan an investigation and grant
ed special authorization to KLM
to send an aircraft and Dutch
technicians to the scene.
The American newsmen
aboard were returning from a
tour of Indonesia sponsored by
the Netherlands government.
(Continued on Page 5, Column 4)
Airlift Plane
Crashes, Berlin
Berlin, July 12 U.R A Ber
lin-bound American ,C-54 air
lift plane crashed in the Soviet
zone of Germany early today.
There was no immediate word
as to the fate of the crew, be
lieved to total three. A ground
search party left Potsdam for
the scene of the crash, two miles
east of Klaitz and 53 miles west
of Berlin, just outside the Ham
burg-Berlin airlift corridor.
The plane radioed it was hav
ing engine trouble just before
the crash. There have been 15
fatal crashes in the little mora
than a year that the airlift has
been operating, killing 52 per
sons. Nine of tne crasnes in
volved American planes, and 29
American fliers have been kill
ed.
For the third straight day, the
Russians were slowing Berlin-
bound western trucks on tha
Helmstedt-Berlin super - high
way to four an hour. They have
closed altogether the otner 11
zonal border crossings which al
lied trucks had been using to
bring food and other suppliel
to western Berlin.
The Russians promised last
night that they would explain
everything today