C apital
y
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EDITION
61st Year, No. 170
Entered u aecond eltvsj
matter at Salem, Oregon
CI f -T- i . i(V .
(20 Pages) Price 5c
aaiem, uregon, i uesaa Las3
THE WEATHER HERE
CONSIDERABLE cloudiness to
night and early Wednesday with
some clearing Wednesday after
noon. Probable light showers to
night. Lowest temperature ex
pected tonight, 50; highest Wed
nesday, 68.
Maximum reiterday, 14: minimum to
day, 53. S4-hoar precipitation. .06! for
month, .04; normal, .83. Seaion precipi
tation, 41.671 normal, 87.29. Error helfht,
-2.8 feet.
Supreme Court
Justice Murphy
Dies in Sleep
New Deal Jurist Ends
Long Career of
Public Service
Detroit, July 19 VP) Supreme
Court Justice Frank Murphy
died at 7:45 a.m. (EST) today.
Doctors at Henry Ford hospital
said the 59-year-old jurist died
of coronary occlusions, a heart
affliction.
Murphy was appointed in 1940
to the supreme court by the late
President Franklin D. Roosevelt.
Prior to that, he had served
one two-year term as governor
of Michigan. He was defeated
for re-election.
Justice Frank Murphy
Before running for governor,
Murphy served as the last gov
ernor-general of the Philippines.
He was also attorney general of
the United States.
The justice has been ill here
for some time but his condition
was not regarded as serious.
He never married. For many
years he was regarded as one
of Washington's most eligible
bachelors.
It was as governor of Michi
gan that Murphy first came into
the national limelight. That was
in the 1930's when the first big
sit-down strikes occurred. He
was vigorously attacked by some
for not using force to oust the
sit-downers from automobile
plants.
(Concluded on pate 5, Column 8)
West Coast AL
Meet Delayed
West Coast Airlines officials,
who last week-end scheduled a
meeting for Tuesday afternoon
with city officials, representa
tives of the Chamber of Com
merce and the Salem newspa
pers, will not arrive until Wed
nesday. The Salem Chamber of Com
merce, which was asked to ar-
range the meeting, was given
this information late Monday.
Reason for the postponement is
the delay in delivery of the new
plane in which the trip is to be
made.
The plane to be brought to
Salem Wednesday has a rear
baggage pit and is a DC-3, the
Capital Journal was told by Da
vid Vaughan, superintendent of
maintenance for the company,
in a telephone conversation from
Seattle.
Installation of the rear bag
gage pit, a change that is antici
pated on all of West Coast's
planes, will enable the airline
to inaugurate freight shipments.
In the past, the company, a feed
er line, has not carried freight.
, Vaughn, when asked about
the Wednesday meeting, stated
that the purpose of the officials'
visit here was to give the city
information on how the com
pany could serve this . area.
Vaughn also said that the com
pany, if it came into Salem,
planned three trips daily north
and the same number south.
Making the Salem visit Wed
nesday will be H. A. Munter,
executive vice president; Bob
England, general traffic and
sales manager; E. B. Code, oper
ations manager, and Russell
Bath, chief pilot. The quartet is
coming from Los Angeles.
Warehousemen
Authorize Strike
Portland, July 19 VP) AFL
warehousemen have authorized
a strike against 21 Portland em
ployer groups if a new working
agreement is not reached by
August 1,
J. W. Estabrook, union sec
retary, said employers had re
fused to meet with union spokesmen.
Battle Rages
In Guatemala
To Seize Palace
Army Leader Assassi-.
nated But Situation
Under Control
Guatemala, Guatemala, July
19 VP) Armored troops were re
ported battling for control of
the national palace today as con
fusion and violence gripped
Guatemala in the wake of the
slaying of her army chief of
staff.
An attack on the palace was
launched last night after the ar
my leader, Col. Francisco Javier
Arana had been assassinated.
War planes zoomed over the
city and armed civilians roam
ed the streets despite police cur
few orders.
Claims Revolt Controlled
Early today Manuel Galich. a
leader ol the revolutionary ac
tion party which supports Presi
dent Juan Jose Arevalo's regime
broadcast that the government
had the situation "in control."
There have been no casualty
reporis, Dut ambulances clanged
through the streets all night, in
dicating some persons had been
Killed or wounded.
Conflicting, confused reports
prevented a clear picture of
wnat was happening, but it be
gan to appear that a coup was
under way- inside the barred
doors of the palace itself.
A government employe said
National Defense Minister Joa
cobo Arbenz and his supporters
were holding the palace against
troops loyal to President Are
valo. Arevalo Barricaded
Arevalo was reported barri
caded in his own residence while
the battle that may decide his
political future Taged outside
the palace.
(Concluded on Page 5, Column 6)
Order End to
Hawaii Strike
Washington, July 19 VP) The
senate labor committee swung
its support today behind new
government efforts to solve the
80-day walkout of Harry
Bridges' CIO - longshoremen in
Hawaiian ports.
As a dramatic climax to a day
ucuue oeiween Bridges and
Senator Taft (R-Ohio), the W
bor committee aDDrnvprl a
lution calling on the union
leader, the island employer-representative,
and U. S. Concilia
tor Cyrus S. Ching to settle the
dispute in 24 hours.
To the expressed disappoint
ment of Senator Douglas (D-Ill )
who suggested the extraordi
nary end of the dispute, Ching
was on vacation and the man
agement representative was out
oi Town.
But Bridges and a rnmnnnv
spokesman showed an eagerness
to end the Hawaiian stalemate.
They suggested that the meet
ing be held Friday if Ching
could make it.
Douglas, a labor-management
economic expert from the Uni
versity of Chicago, made his
suggestion as Bridges and Sena
tor Taft slugged it 'out with
question and answer.
Bridges said his ILWU was a
left-wing union, and that meant
it was interested in civil i-io-v,.
civil liberties and racial equali-
Opportunity To Build
Hospitals Given All
The people who may at any time need care in a hospital are
today given their opportunity to do their part toward building
better hospitals for the community.
They are the people who live in this block or that one, in
cottages, big houses or apartments the general public. ,
The actual community-wide
phase of the Salem Hospital
velopment Program, was given a
start at a dinner meeting of the
teams and leaders at the Mar
ion hotel Monday night. And to
day they are working at what
for some weeks is going to be
their main business carrying
to all the people of the commun
ity the opportunity to help build
better hospitals.
The goal remains at $1,100,-
000. Of this some $248,000 has
been pledged In the advanced
gifts phase of the program.
As previously made known to
the public the first $100,000 of
the fund goes to Salem Memor
ial hospital to cover remodeling
and addition to facilities that
have already been started. Then
the next 9 percent of the fund
will go to Salem Memorial for
later additions. The remaining
91 percent goes to Salem Gen-
I - :
r ft
vjp
Prince and Parents Prince Charles, eight-month-old heir
presumptive to Britain's throne, plays on lawn at Windle
sham Moor, England, his parents' summer residence, with his
mother, Princess Elizabeth, and his father, the Duke of Edin
burgh. This informal picture is from a British news reel.
(AP Wirephoto)
North Atlantic Pact
Foes Seek to Ban Arms
Washington, July 19 VP) Leading foes of the North Atlantic
pact Joined forces today in a
arms commitment into the 12-nation treaty.
This last-minute maneuver is expected to close the ranks of the
loosely-held opposition and offer the greatest threat to the ad
ministration's fight to keep all
reservations out of the pact,
Senator Taft (R.. Ohio), and
Senator Watkins (R Utah),
agreed on a revised reservation
which will be put to a vote
Thursday.
It says: "Nothing contained in
article three (of the treaty) cre
ates a legal or moral obligation
on the part of the United States
to furnish arms, armaments, mil
itary, naval or air equipment
or supplies to any other party
or parties to said treaty."
Taft. Watkins and Senator
Wherry of Ng-braska, republican
floor leader, went into a huddle
which evolved the new approach
to the arms problem.
Wherry has a reservation of
his own before the senate but it
is reported he- will support the
revised Watkins resolution.
Watkins' original reservation
would have ruled out on arms
commitment in any part of the
treaty,
The new approach is to pin
point this obligation to article
three which says: "In order
more effectively to achieve the
objectives of this treaty, the
parties, separately and jointly,
by means of continuous and ef
fective self-help and mutual aid,
will maintain and develop their
individual and collective capaa
ity to resist armed attack."
Taft suggested the change to
Watkins, it is reported, and the
Utah senator agreed to this
move.
Senate leaders are confident
they have the votes to beat down
any reservations.
Churchill's Cow Wins
Tunbridge Wells, Eng., July 19
(ff) Winston Churchill scored a
new success today as a gentle
man farmer. A cow from Chart
well, his farm in Kent, won the
championship prize for female
diary Shorthorns at the Turn-
bridge Wells agricultural show.
De-.eral hospital for the building of
a new hospital. Added to the
fund will be some money the
hospital has from other sources.
The present old hospital will
be continued in use for certain
types of cases.
At the meeting Monday night
speakers again stressed the
shortage of hospital accommo
dations in Salem. The over
crowded condition that has put
the beds of some patients into
the corridors of both institutions
was described as a community
problem that only the commun
ity can solve.
Alfred W. Loucks, general
chairman for the public phase of
the program, said that since the
new hospital will be built in un
its its construction can start be
for the complete fund Is sub
scribed. (Continued on Page (, Column 7)
new major move to write a no-
Bevin Places
Blame for Crisis
London, July 19 VP) Foreign
Secretary Ernest Bevln last
night blamed a large part of
Britain's dollar crisis on high
support prices paid American
farmers by the United States
government.
He told the "house of commons
such prices- are" as much1 S iJart
of a "welfare state" as socialized
Britain's free health service and
nationalization of industry.
Some conservatives (Winston
Churchill's party) have denounc
ed high taxation to finance social
benefits as largely responsible
for the current crisis. They have
declared that funds from the
"free enterprise" United States
should not be used to make up
deficits incurred, by socialist
spending.
Bevin told opponents of the
labor (socialist) government the
"welfare state" should not be
brought into the argument be
cause it is developing every
where.
"The United States is as
much a welfare state as this
country, although in a different
form," he told - the house in a
debate over Britain's loss of gold
and dollar exchange.
Many of Britain's disappear
ing dollars have gone for the
products of American agricul
ture. '
"One of our troubles in the
balance of payments is the fact
that the United States, in car
rying out its development as a
welfare state, has given basic
prices to its agriculture," said
Bevin.
lynching Mob
Burns Houses
Groveland, Fla.. July 19 (U.R)
A mob of armed white men
burned down three Negro homes
last night in an outbreak of ra
cial violence that terrorized this
central Florida farming section.
Feeling had been running high
since Saturday when two Ne
groes were arrested on charges
of raping a 17-year-old white
woman and beating her husband
A third Negro was taken in cus
tody Sunday and a fourth is be
ing sought.
As far as could be determined
no one was in the buildings when
the angry band set fire to them,
Their occupants had moved out
before nightfall.
Earlier, Lake county Sheriff
W. V. McCall hurled a tear gas
bomb into the midst of a heav
ily armed mob of about 50 men
who rode through Stuckey's Still,
a Negro community about five
miles west of Groveland, firing
shotguns and pistols.
The three Negroes under ar
rest have been charged with
rape, kidnaping and causing bod
ily harm in connection with the
Saturday offense. McCall said
they had admitted the crimes,
'.
Heppner Fire
loss $800,000
Heppner, Ore., July 19 VP)
This Wheatland town's grain ele
vators and warehouses were de
stroyed last night in a fire that
caused more than $800,000 dam
age. It was the most destructive
blaze in Morrow county's his
tory. Two grain elevators, a flour
mill, two large warehouses, eight
railroad boxcars and two lum
ber and coal yards were de
stroyed before the flames were
under control.
About 190,000 bushels of
wheat were lost.
Most of the damage was in
sured.
During the height of the
wind-blown blaze there was dan
ger that three gasoline and oil
storage tanks would blaze and
that burning grain showered
across the sky would set fire
to homes and other business
buildings.
Grass fires peppered the
neighborhood and one tract of
several acres burned before it
was trailed by bulldozers.
Leveled by flames were two
elevators, the mill and ware
house of the Morrow County
Grain Growers' Co-op, the coun
ty s largest grain facility; the
plant of Interior Warehouses,
Inc.; the Tum-a-Lum Lumber
company yard; a coal shed
owned by Ed Breslin and sev
eral smaller structures.
Fire Chief Charles Ruggles re
ported the flames were detect
ed at the top of the co-op ele
vator and within 12 minutes the
structure had toppled across a
railroad spur, igniting the box
cars and spreading to the Inter
ior warehouse. He said it was
believed an electric short-circuit
in the elevator machinery set off
the blaze.
Atomic Energy
Meeting Called
Washington, July 19 VP) A
meeting of the senate-house at
omic energy committee has been
called for tomorrow to discuss
relations with Britain and Can
ada in the field of atomic ener
gy.
In announcing it, Chairman
McMahon (D., Conn.) confirmed
that the hush-hush meeting
President Truman had at Blair
house last Thursday night dealt
with that subject.
Although Senator McMahon
did not say so, the principal
problem Is reported to be Brit
ain's view that she should be giv
en American secrets of how to
produce the atomic bomb.
A majority of the joint con
gressional committee is under
stood to be opposed, at the pres
ent time, to passing this "know
how" on to any foreign country
including Britain.
McMahon said in a statement
that the committee will meet in
a closed door session tomorrow
afternoon "to explore with the
department of state, the nation
al military establishment and the
atomic energy commission the
continuing problem of our rela
tions with the United Kingdom
and Canada in the field of atom
ic energy."
Alberta Short of Gas
Edmonton, Alberta, July IB
(U.R) Premier E. C. Manning of
Alberta announced here today
there was an insufficient sur
plus of natural gas in the prov
ince at present for the govern
ment to grant export permits
immediately under its new ex
port legislation.
Truman Pledges Success In
'Great Crusade For Peace'
Vaughan Won't
Comment on
Army Scandal
Washington, July 19 VP) Sec
retary of Defense Louis John
son said today no additional
army generals are now earmark
ed for suspension as a result of
inquiries into handling of gov
ernment contracts. Two major
generals have been suspended.
Johnson s assertion was in re
sponse to a reporter's question.
In a story this morning, the
Washington Post had linked
Maj. Gen. Harry S. Vaughan,
President Truman's military
aide, with a matter which re
sulted in the suspension of Maj.
Gen. Alden H. Waitt.
Vaughan himself, when asked
about it, said; "I won't comment,
not even about the weather."
No One Else Marked
Johnson and Army Secretary
Gordon Gray were leaving the
White House after a conference
with the president when a re
porter asked:
"Have you marked any other
generals for suspension?"
"No, not a soul, Johnson re
plied.
Johnson said the talk with
the president concerned defense
matters and that a senate sub
committee's investigation of
five percenter" contract rep
resentatives wasn't mentioned.
The post said Vaughan is re
ported to have had the "lmprop
erly furnished personnel data'
which figures in Waitt's case.
Vaughan Implicated
In a copyright article, the
Post reported that "the data is
said to have been relayed to
Vaughan" by James V. Hunt.
former army officer whose ac
tivities are under scrutiny of a
senate committee investigating
the handling of government con
tracts.
The Post said investigators
working on the case "suspect
Vaughan was used by Hunt" to
try to keep Waitt as chief of the
army's chemicul corps.
Secretary of the Army Gor
don Gray announced last Satur
day that Waitt and Maj. Gen.
Herman Feldman, army quar
termaster general, had been re
lieved of duty as the result of
evidence turned up in the sen
ate inquiry. ,
(Concluded on Page 5. Column 6)
Violent Race
Riot in London
London, July 19 W Fists,
iron bars, chairs, bottles, crock
ery and even live coals flew in
London's East End last night in
what long-time residents describ
ed as the city's worst race riot
in many years.
Two Negroes suffered severe
injuries and three bobbies were
slightly hurt in the melee. Eight
white man and an equal num
ber of Negroes were arrested.
The riot brought more than
100 policemen to a street in
Deptford, working-class section
along the Thames river where
many Nigerian laborers and un
employed Londoners live in a
lodging house.
McKay Approves Rent
Control Lift, Ashland
Governor Douglas McKay approved today the removal of rent
controls in the city of Ashland.
And at the same time, he gave a strong hint he would approve
rent decontrol in Eugene and Salem.
It was the first time that the governor had acted under the new
Tpriprnl rpnt pnnfrftl low wMph?
niinwo onvmnr tn rfoMp
governors
whether rent controls should be
removed in any local area.
The governor's recommenda
tion goes to the federal housing
authority, but that is considered
only a formality,
Governor McKay said the Ash
land rent situation was not con
troversial. The only communi
cation he got from Ashland was
the recommendation of that
city's council asking for rent
decontrol.
But he now faces two tough
ones. They are the requests by
the Eugene and Salem city coun
cils for rent decontrol in those
cities.
The governor said he has re
ceived more than 79 letters and
Large Part of
Brannan Farm
Trial Bill Junked
Washington, July 19 VP) A
large part of the admlnlstra
tion's Brannan plan trial run
farm bill went into the waste-
basket on both sides of the cap!
tol today, but the beginning of
the showdown battle in the
house was postponed.
The house adjourned out of re
spent to Supreme Court Justice
Murphy who died in Detroit ear
ly today. The opening of the
farm debate, scheduled for to
day, was reset for tomorrow.
Prior to the debate postpone
ment there were these fast mov
ing farm developments:
New Developments
1. A senate agricultural sub
committee erased from its farm
bill any authority for Secreta
ry of Agriculture Brannan to
use hogs as one of the crops for
his controversial production
payments or farm subsidy plan,
Brannan had mentioned hogs as
one of the first crops on which
he wanted to try out the sub
sidy plan, which the . secretary
proposes for use on many foods.
The present program supports
farm prices by removing price
depressing surpluses from the
markets by government loans
and purchases.
Senator Aiken (R., Vt.) told
reporters he thought the subcom
mittees action wiped out any
chance of senate approval of the
Brannan plan at this session of
congress.
(Continued on Page 5, Column 5)
Lions to Build
City in Illinois
', New York, July 19 VP) Plans
for the construction of a "Lions
International City" on land on
the Lincoln highway, south of
Chicago, were outlined to the
32nd annual convention of Lions
International today.
Eugene S. 3rlggs, of Enid,
Okla., international president,
announced that the international
board has authorized the plan.
He explained that Lions In
ternatlonal City will be located
near Matteson, 111. Approximate
ly 375 acres of land already
have been purchased and $442,
000 has been spent on the devel
opment, he said. It is expected
to be expanded later.
Some of the ideas for develop
ment of "Lions International
City" submitted by Briggs to the
convention "for your reaction
and consideration," included
"To provide a permanent home
for Lions International, building
and other equipment necessary
to take care of the headquarters'
staff, . . . and to make availa
ble homes for employes and oth
er Lions who may want homes
within the city, together with
all other facilities that come
within the natural scope of a
city."
Fifteen thousand Lions and
their ladies marched up Fifth
avenue last night in a three-hour
parade.
, telegrams from Eugene, with
those wanting decontrol being in
a slight majority.
Labor and veterans organiza
tions in Eugene want rent con
trols, while landlords want de
control, he said.
The governor said he ordi
narily would be guided by rec
ommendations of city councils,
but he said he wished cities
would take advantage of state
funds for housing surveys before
they ask for lifting of rent con
trols. He said It would be "difficult,
and certainly out of order, for
me to override the decision of
a city council."
Portland is the only city which
has asked for state funds for a
housing survey. I
Tensions Seen
Increasing in
Russian
By MERRIMAN SMITH
Chicago, July 19 (U.R) Presi
dent Truman reported today
that tensions and conflict are
increasing within the Soviet
orbit and promised that this
nation's "great crusade for
peace" will succeed.
He said world communism
will have to abandon its coer
cion of other nations, or face
inevitable self-destruction.
The president, in a nationwide
broadcast from Soldier field,
promised the crusade for peace
will go forward despite the con
trary efforts of communist-guid
ed leaders whom he accused of
erecting "barriers of suspicion"
between their people and the
outside world.
Addresses Shriners
Mr. Truman addressed the im
perial council session of the
Shrine, meeting here to cele
brate the diamond jubilee of this
branch of the Masonic order.
The president said "our do
mestic and foreign policies arc
inseparable." He asserted that
in order to maintain a "strong
and stable economy; and pro
mote peace there are two objec
tives "which require action
now":
1. "We must take proper steps
to see that our economy moves
safely through the present tran
sition period, and that employ
ment and production start ex
panding again. If we were to
make our plans on the assump
tion that employment and pro
duction will get smaller, we
would only make matters worse,
and waste much of our potential
economic strength. What we
must do, instead, Is to make all
our plans, private and public, in
such a way as to give us more
jobs and more output. This is
the way toward a stronger econ
omy." Don't Slash ERP Funds
2. "Furthermore, we must
take action to insure that the
hard-won economic recovery or
other free nations does not re
vert to stagnation and despair.
One of the most foolish things
we could do right now would be
to slash our appropriations for
European recovery. If we did
that, we would be deliberately
throwing away gains for peace
and freedom that we have pain
fully made. Only the commun
ists would profit if we took
such a short-sighted course."
Mr. Truman's speech was car
ried over three radio networks
CBS, ABC and MBS. He flew
here from Washington today
and will return to the White
House early tomorrow.
He will speak informally to
night at a Shrine banquet hon
oring Galloway Calhoun of Ty
ler, Tex., outgoing Imperial po
tentate of the Shrine. Mr. Tru
man is a member of Ararat
Shrine Temple of Kansas City.
Shriners Stage
Arabic Splendor
Chicago, July 19 VP) The
Shriners paraded down Michigan
avenue today to a Soldier Field
for a speech by President Tru
man. And a gorgeous Cakewalk
It was.
Nearly 15,000 promenaders,
attired in such Arabic splendor
as the Arabs have never seen,
took part in the five-hour prom
enade along the Lake Front
boulevard.
Blaring Shriner bands led the
brlghtly-hued pageant of 1000
units. It had a super circus
touch, enhanced by clowns, ac
robats and calliopes.
The red-fezzed members of the
Ancient Arabic Order Nobles of
the Mystic Shrine strutted their
stuff on foot, on camels and on
graceful Arabian horses. Shrin
ers from all over North America
are here for the Diamond Jubilee
convention, and today's parade
is one of the highlights.
Shriner Harry Truman of Ar
arat Temple, Kansas City, plan
ned to arrive by airplane from
Washington about noon (PDT).
A crowd of 100,000 was ex
pected at the Soldier Field stad
ium where Mr. Truman, speaking
as president of the United States,
was to speak two hours later on
foreign affairs.
Before his speech, tradition
was to be shattered by public in
stead of previously secret instal
lation of a new imperial potentate.