Capital A Journal
An Independent Newspaper Established 1888
GEORGE PUTNAM, Editor and Publisher
ROBERT LETTS JONES, Assistant Publisher
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4 Salem, Oregon, Thursday, July 14, 1949
The President's Fireside Chat
'i President Truman's "fireside" radio address Wednesday
was a plea for inflation through deficit spending and a de
nunciation of economy and balanced budget advocates in
congress as "selfish interests" intent on bringing on a de
pression. It was in defense of his mid-year economic re
port in which he turned a complete flip-flop, urging that
big spending must continue at the expense of the unbal
anced budget.
Mr. Truman said that proposed government economics
would lead the nation toward depression, and that while
business, industrial and employment trends are downward,
they are not yet dangerously so. To avert it he called for
a steady expanding national economy accompanied by a
rising standard of living, and that big spending at the ex
pense of an unbalanced budget must continue. He said :
"To slash government expenditures now would add to the
downward business trend. It will decrease unemployment,
cut down investment, weaken our defenses and injure our
efforts lor peace."
The national debt now stands at the record figure of
$252 million. The budget for the current fiscal year raised
by the record peace time taxation calls for $42 billion.
Deficit spending therefor calls for an increase in our astro
nomical national debt and can only be financed by the
issue of more government bonds the interest on which
still further increase annual budgets.
When a private concern has to borrow money to pay debt
interest, pay it out of capital, it faces bankruptcy, like the
get-rich quick concerns that pay their high dividends out
of the sale of stock to suckers instead of out of non-exist-ant
profits.
' But federal financing is different. It can pay unearned
subsidies of all kinds to special political pressure groups
out of tax money or it can use the taxpayers' money it col
lects to establish competitive government enterprise to
put the best paying taxpayers out of business. And those
that object or favor a return to the economic law of supply
and demand, or the legal safeguard of equality before the
law, become branded as "selfish interests."
, Figures Continue to Favor United
Salem awaits with interest what West Coast Airlines
has to say about its proposed serving of the city. That
airline seeks to take the place of United Air Lines, which
has been tieing in the capital with Mainliner transconti
nental service since 1941. West Coast will present its
case to Salem next week.
.Meanwhile, a comparison of United's' service in and out
of McNary field in 1946 and now, continues to make the
Qivil Aeronautics move to oust the Mainliner outfit here
seem completely out of reason
In June, 1946, United passenger revenue for Salem
amounted to $8020. The same month this year the com
pany took in $29,700 in passenger revenue. That is an
Increase of well over 800 percent not bad in any business.
What about air freight? United handles air freight,
but West Coast, which wants to be substituted, does not.
In June three years ago, United did not handle air freight
out of here. But last month United showed 17,300 pounds
put on here and 3500 pounds taken off in air freight. These
figures are for only one month. That's better than 20,000
pounds.
In air express shipments, the McNary field station of
United showed an increase of 775 percent for last month
over the same month three years ago. In air mail handled
by the air line, the increase for the month over the same
month three years ago was 300 percent.
These United figures merely substantiate the case that
Salem is drawing up to keep the Uinted Air Lines station
here. The city's position would be jeopardized if adequate,
transcontinental air service were not offered. A feeder
line service, like that of West Coast, could be in addition.
The city has the right to expect and demand that the
basic Mainliner service of United be maintained and not
discarded as the CAB is considering doing.
gy BECK
Recollections
qI jj j
vNffif - V INVITED TO THE PARTY
. vj .CSw-AND PARADED FAST IT?
- SMOKING LICORICE PIPES
o5?5sSx? TO SHOW 'EM YOU DIDNT
SN5SSVS?5 X'-rr CARE. AND WERE TOO OLD
WASHINGTON MERRY-GO-ROUND
State Dept. Tones Down
Criticism of Chiang
By DREW PEARSON
Washington Six state department stenographers were kept
busy last week retyping and toning down the American white
paper on China. Hastily censored out were allegations labeling
certain relatives of Generalissimo Chiang Kai-Shek as crooks.
Inside reason for these sudden changes was a long and con
tinuing a r g u-
BY GUILD
Wizard of Odds
m e n t between
Secrets ry of
State Acheson
and Secretary of
Defense Louis
Johnson.
For three
months John
ion had been
building a bon
fire under the
state depart-
Drew Fearattn
cobs. "You'll get your turn af
ter I get through."
Blazing mad, Kennedy left
the committee rostrum and took
a seat in the front row of specta
tors. After chatting briefly with
an acquaintance, he went back
on the rostrum and announced:
"I'm getting off the subcom
mittee." "That's okay with me," replied
Jacobs.
WHEN PARENTS ASSIST THEIR
CHILDREN'S MARRIAoESnfi&l
FINANCIALLY, IT ftSJ
UF DtTHF
ODDS FOR
HAPPINESS.
MEN 7 FEET TALL BEAT
ODDS OF 61 ,000 TO I. (aw
THAT'S HO 7AU STORY, WHIT
COURTNEY, S.ST.10IIS,
SIPS FOR SUPPER
Can't Please 'Em
By DON UPJOHN
All last summer and way up to state fair time folks around here
complained because of lack of summer weather. In fact, to those
who can recollect that far it may be remembered there wasn't
summer
wrestlers lost a decision to Pres
ident Truman last night but it
drew a flood of protests. When
television station WDTV inter
rupted its grunt and groan show
to switch to the capitol for Tru
man's economic talk its tele
phone switchboard lit up like a
Christmas tree. Irate wrestling
fans demanded the station re
turn to the usual Wednesday
night fare. The presidential talk
lasted just long enough for the
any
weather
speak of until t$
turned some 1 1
ment ursine it
to support Chiang Kai-Shek's NEW YORK POLITICS
Kuomintang. Former governor Herbert Le-
Johnson is a personal friend hman and New York Boss Ed
and former attorney for Dr. H. Flynn have been playing cat-
H. Kung, brother-in-law of the and-mouse over who will run
generalissimo and reputedly one fOT Bob Wagner's senate seat,
of the world's wealthiest men. They held two secret huddles
At cabinet meetings, at super- last week, during which Flynn
secret meetings of the National tried to .get Lehman to an-
Security council, Johnson con- nounce his candidacy for the
stantly, continually neddled senate immediately. Flynn
Acheson. didn't say so but, if Lehman an-
For a long time there was no nounced right away, the way
result. In fact, when Acheson would be clear for Flynn's
returned from the Paris con- friend, Brooklyn Borough Pres-
ference the other day he ordered ident John Cashmore, to be
his staff to work out a new blue- democratic candidate for mayor
print for American-Chinese rela- or tne world's largest city
dIRLS.IF YOUR
y MAN LOVES YOU.IT'S 9
V TO 1 YOU SHOWED LOVE FIRST.
tofSgl
tions which was to be strongly
anti-Chiang.
That blueprint was placed be
fore the National Security coun-
Lehman, however, knows he'll
have a tough fight to win the
senate seat in November, so he
wants a strong candidate on the
ticket with him for mayor
and not John Cashmore. That
Don UpJoha
ing about no
summer are now
villifylng the heat wave as they cameras to miss the main bout.
swab off the backs of their necks
with their handkies and walk Although the new 1-cent addi-
about in an apparent daze. We tional gas tax went into effect
have never been able to figure ihe first of the month to-date
out just what kind of weather ' we've heard nobody kick about
they want, as no matter what it, in fact have only heard one
kind it is they kick about it. mention of it. The boys and gals
The situation seemed to have
been adjusted in the title divi-
just pay and say nothing. Yet
speak to them about a sales tax
fka.F la, nut a .rain lilfQ rina
s.on of the secretary of state's Uh firecrackers on his taU. But
office yesterday in the basement we t tell the difference from
of the Capitol building where th, and other sale, tex
Reynold s Omart, chief and his
gals were served with icicles T : m
instead of heat and were the Love Finds a Way
envy of all the other employes Eugene VP) Alumni of old
in the building with the gilded Oregon can take time out here
statue. Yea, the new cooling right now to dream a little,
system was being installed there Cltv council has set a date for
and while tested icicles formed opening bids aimed at diverting
on the copper pipes. As long water again into the millrace
as the present weather keeps up romanticized in university songs
we imagine Reynolds and the about the campus sweetheart. A
gals won't kick if
right on testing.
they keep citizen's committee has raised
qzu,uuu towara me prujeci. ine
city will match the money for
construction of a diversion dam
Hunger for Knowledge
Heidelberg Nearly half of the 4,500 students of the Heidel
berg university are trying to live on one meal a day, the Stu
dents' association reports.
Like everybody else In west Germany, the students, mostly
ex-Wehrmacht soldiers, lost nine-tenths of their savings and
hank accounts last year In western Germany's currency re
form. Most of the students have not enough money to buy
the food on their ration cards, Gorti Roth, chairman of the
Students' association, said. The one meal they do get is
free.
"It's good, old Herbert Hoover's relief fund which serves
us this meal," Roth said. (The former American president
was Instrumental In setting up school feeding In the Ameri
can zone after the war).
The Students' association has started a plan, however, to
supplement the income of needy members. Negotiations have
begun with the American-German Women's club In Heidel
berg to get the students small jobs In allied and German
households.
Dirty Trick on a Rooster
Detroit (IP) It's a scurvy trick to play on a rooster, even
In the name of good eating.
Dr. F. C. Tucker of Claypool, Ind., attending the American
Veterinary Medical association meeting here, told of a trick
Vets may play on young cockerels.
About a month before the barnyard strutters are to be
slaughtered, he said, they can be treated with certain female
sex hormones. The preparation makes them fat and tender.
But all sorts of strange things happen, too.
The birds become awkward and slow In their movements,
and they start acting "something like hens." Some even squat
and eluck.
Dr. Tucker said the birds must be killed within a month
after the treatment. Otherwise the effect of the hormones
wear off and Ufa in the hen house gets exciting again.
Norse and Buggy Influence?
Alton, 111. (IP) A startled motorist informed the police as
follows:
Ha passed a car on the highway. Ha looked, saw no driver,
looked again. Then he saw two boys in the rear seat. They
were guiding the car with ropes attaehed to the steering wheel.
Outgruntled and Outgroaned
Pittsburgh VP) A flock of and intake channel.
Drought Must Be Getting Bad
Holyhead, Wales (IP) So severe Is the drought on the
Island of Angelesey that country Inns now show this sign:
"No water, please take soda with your whiskey."
MUSGRAVE PRESENTS HIS CASE:
Why West Salem Should
Merge With City of Salem
By WALTER MUSGRAVE
'Mnyor of West Snlem)
The merger Issue of West Salem with Salem need only be con
sidered on its merits. The merger would offer a common gov
ernment for people of both communities who have common in
terests. We in West Salem are already lem disposal plan, or $225,000
enjoying and have for many if the disposal plant itself were
years the service of the Salem built in West Salem. Using the
post office. smaller figure, annual amortiza-
We never have been able to tion costs would be $21,325, plus
afford our own fire department. 3 percent interest. Our entire
In desperation we turned to city budget this year is $74,580.
Salem the same day I first took If we must add the sewer costs
office to solve temporarily our to our present budget, the fig
water problem. ure of $21,325 equals 28.6 per-
The school consolidation cent of our budget, or a direct
proves beyond question of a increase in taxation of 28.6 per
doubt the value of merger. Our cent. Add that figure to the 17
old school was inadequate in percent saved if West Salem
many ways. Under consolidation merges with Salem and we have
we gained a junior high. The 45.6 percent difference in each
Salem school board spent rough- taxpayers' favor in taxation by
ly $100,000 adding new rooms, merely voting for the merger,
a new cafeteria, besides increas- It should be realized that these
ing the pay of the teachers and arc minimum figures
accommodating 140 new stu- Salem's tax figure includes
dents. This improvement has the sewer bond Issue already
come to West Salem without a voted. The $.65 per month sew
cent of cost. The fact is our tax rental charge is carrying the
mill for schools dropped 2 mills load. West Salem must yet vote
after Salem spent the $100,000. a bond issue, plus $1.25 per
Taxation is a prime reason for month sewer rental charge, if
merger. West Salem's tax is we fail to merge. Our city coun
now 87.1 mills, equaling 14.2 cil would be obliged on August
for county, 37.2 for school and 1 of this year to adopt the
35.7 for city. Salem's tax Is 73.5, necessary ordinances in the event
with county being 17, school 36 the merger is defeated,
and city 20.5. If merged, West These benefits of merger don't
Salem's tax would become 14.2 take lnto consideration, either,
for county, for school and tne savings West Salem resl-
20.5 for city for a total of 71.9 dents would realize by reason of
or a reduction of 15.2 mills, associating with the water sys
which amounts to a saving of 17 tern of Salem or in the lower-
2L?A' ?ueek:. " vlf5JiI is why he refused to announce
Acheson-about 5 to 1. Those w?U rUnmng
voting no were Johnson, the
treasury department, and heads MERRY-GO-ROUND
of the armed services. They fa- Wonder what's become of
vored continued support for Elizabeth Bentley, the buxom,
Chiang Kai-Shek's regime, no confessed female spy who start
matter how graft-ridden. ed all the fuss over Alger Hiss?
Swinging the decision against During the Hiss trial she was
Acheson were two factors: strangely absent. Nothing left
1. A. statement i-y Mao Tse- 0f. her in Washington except a
Tung, leader of Red China, that hotel bill for $500, for which
he was a Moscow-loving com- conscientious Congress man
munist; Wood of the un-American activ-
2. First indications that Chi- ities committee wants special au
nese Reds planned rough treat- thority from congress in order
ment for American personnel, to settle.
as later proved by the beating Ex - Congressman Georgia
up of U.S. Vice Concul William Lusk of New Mexico will soon
Olive. be appointed to the new war
Instead of Acheson's propos- claims commission,
ed hands-off policy, the joint Alert Congressman Furcolo of
chiefs of staff recommended a Massachusetts has urged Presi-
ring of defenses around Red dent Truman to revamp future
China. ' espionage trials. Truman has
This ring will consist of the accepted Furcolo's suggestion.
Japan- Formosa- Philippines Is-
land chain, plus Siam, Burma, CAPITAL NEWS CAPSULES
India and one small part of Senate Office Scramble John
south China where Chiang Kai- Foster Dulles' arrival in the sen-
Shek will be defended to the ate has started a scramble for
last ditch. offices. Twenty -five senators
General MacArthur has cabled are planning to trade offices
his vigorous support of this gen- 3ust to make room for the new
eral idea which, incidentally, senator from New York. What
will cost a large, and so far un- happened is that under the sen-
estimated, amount of money.
iority system, Dulles is low man
on the totem pole and not en
titled to the choice office vacat-
Young Congressman Jack in iine is Q'Mahoney of Wy
oming. But if he moves into
Wagner's office, Senator Chav-
PEGLER PROBE
Kennedy of Boston was elected
as a fighting, aggressive champi
on of labor He is also the son e2 of New.MexiC0 is entitled to
of Joseph P. Kennedy, ex-am
bassador to London, an admirer
shift O'Mahoney's office. And
so on down the seniority ladder.
of Columnist Westbrook Pegler. Meanwhile, Senator Ives of New
Anrl mnan DarMA finllnJ 1
hn T " V . , York is try'n8 to talk colleagues
bor leaders "despots, criminals out of this wholesaie moving
and communists" at a congress- since Dulles wiu b ln th
ional hearing, young Kennedy ate , few months anywa
resigned from the subcommit- bassador Leighton Stuart has
ta, flrSt,Pu0tentin? thB warned a American diplomats
manner in which Chairman in china to be on thejr
wJfSTiiSrS.i0', Indianapolls havoir in deaing with the com-
"wl i g..PeglC V . u , munists. Stuart believes the
Why don t you let somebody comraunists- actlon in jailing and
else ask some questions?" asked beating U-S. vice CoJnsul Qlive
?frf- rvPJeS,entatvVe,Slm,1 in Shanghai is just the first
(S.C ) would like to ask a few." step in a campaJign to brand
rIi r,. .kt T. i. t aU American diplomats as spies,
I ve got mine," shot back Ja- ,r-.. iu.
MacKENZIE'S COLUMN
Reasons Behind Moves
To Form Pacific Pact
By JAMES D. WHITE
(Substituting for DeWttt MacKenzle, AP Foreign Newa Analyst) J
As the cold war grips East Asia, it is only .natural that political
leaders there should get together on how to stop the spread of
communism. '
This is one reason, but by no in Canton as the recognized
means the only reason, that the government of nationalist China,
"retired" generalissimo of Chi- This dispatch, quoting compe
na, Chiang Kai-Sheck, and Presi- tent but not otherwise identi
dent Elipdio Quirino of the fied observers, says the news
Philippines have met and agreed already has given Canton a "shot
to form an anti-communist un- in the arm."
ion of countries in the western "What the nationalists would
Pacific. like, of course, would be an out-
It could serve a variety of break of war between the Unit
other purposes. ed States and Russia," says the
Before we go into these, here dispatch. "Since this appears
are the salient facts about the unlikely, the next best thing
proposed union: would be some sort of common
It is far short of the Pacific anti-communist front among
pact Quirino and others called Asiatic nations which would be
for last winter when the Atlan- a big moral, if not a substantial,
tic pact was announced. It does boost to the Kuonmintang post
not mention the military aid tion."
necessary to give it teeth, but The Hongkong reports says
could set up an organization ca- the Chiang - Quirino agreement
pable of being converted to han- has the effect of "consolidating
die such aid if and when the wavering Kuomintang elements
United States gets around to it. in Canton behind the party.
President Syngman Rhee of They still are betting on Ameri
Southern Korea has said "Korea can atom bombs to win a war
stands ready to join." While he with Russia if they can just stall
was saying this, his envoy to the off the Reds long enough for
United Nations was asking per- the war to take place," the re
mission to raise the , Southern port concludes.
Korean armed force from 100,- ... '
000 to 400,000 men. Quirino is in nothing like so
. . . desperate a position.
In Washington, the state de- He does have communist trou
partment says it views such ble in the dissident Hukbabv
movements as the proposed Pa- haps, but they are far from be
cific union "with sympathy," ing the force represented by the
but stands on Secretary- Ache- Reds in China, who have forced .
son's earlier statement that a Chiang into "retirement." f
Pacific pact at this time would Quirino has other domestis
be premature. troubles. In the election next
Getting the United States as fall he faces strong opposition,
a member is a prime objective His liberal party has nominated
of the union. Australia, New him to run for a second term,
Zealand, Siam, Indonesia, and but strangely could not agree on
Burma also will be sought as a vice presidential candidate
members.. and left Quirino to pick his own.
A dispatch to the Associated The internal split this reflects
Press from Hongkong indicates among the liberals is in contrast
that Chiang may be promoting with the growing strength of the
the Pacific union from his "re- nacionalistas under Jose Laurel,
tirement" as another way of pro- once puppet president under the
longing his refugee government Japanese.
'May I Drop Dead . .
Nuernberg, Germany W Friedrich Geyer, charged with
being a major nazi offender, said in his appeal before the
denazification court recently:
"May I drop dead If that charge Is true."
A few minutes later he fell dead in the courtroom.
Doctors said he died of a stroke.
SABOTAGE IN U. S. ZONE
Outline of Red Guerrilla
Tactics in Korea Found
Seoul, Korea (IP) The "political college" of North Korea puts
its students through a rugged curriculum, but graduates face a
risky future. A copy of the training schedule used at the college
in Pyongyang was found recent- '
ly on one of the graduates who lived in the south,
had infiltrated into the Amer- Captured guerrillas said they
ican-sponsored Republic of Kor- were sent south in "battalions"
ea south of the 38th parallel. of 80. Their mission was to re-
The schedule shows that stu- cruit southern Koreani: in hrlno
dents spend four and one-half eash battalion up to a strength
mumns learning military ais- 01 several hundred
percent.
By state law we must build
ing of insurance rates because
a sewage disposal plant at a OI Deuer I re Pe:on.
minimum cost of $174,000 if The facts obviously point to
sewage is pumped into the Sa- ward merger.
Court Doesn't Stand for That
Washington OiR) While the defense attorney was making
his opening remarks at murder trial, Juror Edwin F. Fallon
Interrupted to ask:
"Who the hell Is Plnkney?"
Pinkney, It developed, was the victim of the slaying.
The judge removed Fallon from the panel and asked him
why he had upset the decorum of the courtroom.
"Your honor." he explained, "I was just so wrapped up in
the case I couldn't tell who this fellow Pinkney was."
cipline, marksmanship, guerril
la fighting and sabotage meth
ods to use in the south. They
put in a full day, 5:35 a. m. to
10:50 p. m. Communist poli
tics and Russian history also
were listed courses.
About half of the class of
800 that was graduated May 17
is believed to have entered
southern Korea. One hundred
and twenty were women.
Alert southern border pa
trols captured or killed 60 be
fore they had gone very far.
Others got into the mountain
ous and sparsely - populated
Kangwon province, 90 miles
northeast of Seoul. Mopping
them up will take weeks.
A few may have reached the
guerrilla bands that have been
operating in the hills of the ex
treme south. Others may have
settled down and become farm
ers, since many of them once
officers say this had
flop.
H BLENDED WHISKEY
qUt JLY1 i r EoJr I
1 Jyri
ftfo44 Whiskey M PnMf m
(5 Grata Neitral Mrttt
MEN'S SLACK & TROUSER
SAim SALE!
100 PAIR FOR SELECTION
$3.00 - $13.00
Thos. Kay Woolen Mill Co.
Open Saturday 2M South j 2f h Strett