THE WEATHER HERE PARTLY CLOUDY tonight and Friday. No important chance In temperature. Lowest tonight, 53; highest Friday, 78. Maximum Teilerday, 1: minimum a"ay. 52. X4-hour precipitation, ill tor month, 0: normal, .01. Seaaon precipita tion, 41.81; normil, S7.3S. River hellht, -R.S feet, (U. 8. Weather Bureau atatli-Ilea) C apit al nail HOME EDITION - 61st Year, No. 184 Entered u second clui mtttar tit B&lem. Orwou Salem, Oregon, Thursday, August 4, h C24 Pages,) Price 5c gin vju Truman Firm For Arms Bill To Aid Allies Agrees to Curb On Allocation of Military Aid Washington, Aug. 4 W) Pres ident Truman today rejected suggestions that he compromise in his request for $1,450,000,000 for arms aid to friendly nations. Mr. Truman indicated at his news conference, however, that he does not oppose suggested congressional curbs on his broad authority to allocate the lunds and specify nations to receive the aid. Ssaid the arms aid bill to !ment the Atlantic alliance should be passed by congress as soon as possible and that the full amount sought should be granted. Democrats and republicans alike have agreed that Mr. Tru man may not get all that he wants in the request for arms aid. House Set for Cut House foreign affairs commit tee members appeared deter mined to trim the amount asked even after they received fig ures in Soviet military strength. They had a full day of closed door sessions yesterday with arms and state department ex perts who helped draft the big arms aid program. Mr. Truman said he does not care anything about blank check authority to allot the arms aid money. He said he is content to let congress work out the details. The important thing, he said, is to provide the money and provide it quickly. The situation shaped up like this after the first full week of committee consideration of the program sent to congress last week by Mr. Truman: Concluded on inffe 0, Column 8) i White Paper on China by U.S. Washington, Aug. 4 (P) Pres ident Truman said today that the United States will publish a white paper on its relations with China to clear up "mis representation, distortion and misunderstanding." In a formal statement, the president said that the friend ship between the United States people and the people of China "is as strong today as it has ever been." He said the problem is to find way "to give practical expres sion to that friendship" and that this is receiving "the closest at tention of this government." The statement was given out at his weekly news conference. , A reporter recalled that there has been criticism that the Unit ed States government has been "too slow" in its aid to the Chinese nationalist government because of reported communist Influences within the state de partment. Mr. Truman said that this entirely erroneous criticism would be covered in the volume the state department is publish ing tomorrow. He said in his statement that some of the "misrepresentation, distortion and misunderstand ing" arose because this govern ment "was reluctant to reveal certain facts, the publication of which might have served to has ten the events in China which have now occurred." President Favors International Fair Washington, Aug. 4 VP) Pres ident Truman today voiced his support of a proposed interna tional fair in the United States next year to stimulate interna tional trade. Mr. Truman told his new con ference he thought the idea for such a fair is a very fine thing. He said the matter is under consideration officially, but he did not go into details. A newsman had mentioned a report suggesting that such a fair be held in the United States in 1950, naming Atlantic City and Detroit as among the cities sug gested for sites. Mr. Truman said he was fa miliar with the idea. He said its purpose would be to make sales of U. S. products easier and also make it easier to import prod ucts. frp -Ar ffJRS! fell i rlTfili M'&y Jraj Kit u r i ii m mtimti I y ililiaiM) ' itfu fti M i i ii.iiirriiin i MtriwiwiiM M.j.r-.aJ Refuse to Let Mrs. FDR Quit Washington, Aug. 4 VP) President Truman said today that he had rejected an offer by Mrs. Franklin D. Roosevelt to resign from her United Nations post. He said she will return to the next general assembly as a delegate. The President said that no reference to Mrs. Roosevelt's controversy with Francis Car dinal Spellman over federal benefits to parochial schools was contained in her letter. He described it as the routine formal offer to resign that vir tually all holders of diplomatic posts send in regularly. A reporter brought up the subject at Mr. Truman's weekly news conference. The newsman said he had been told that the widow of the late President had offered to resign her post with the United Nations (she is a member of the human rights commission.) because of her controversy with the Catholic prelate in New York. Mr. Truman replied promptly that Mrs. Roosevelt offers her resignation every year. In the last case, he said she expressed no reason. Asked if he will ac cept the resignation, Mr. Tru man replied she's going back to the United Nations. Railroads Clamp Wheat Embargo Portland, Aug. 4 UP) Rail roads clamped an embargo on shipment of government owned wheat and barley to Pacific northwest ports today at the re quest of the commodity credit corporation. Clyde Kiddle, regional CCC director, said the embargo was necessary because terminal ele vators at Portland, Vancouver, Longview, Tacoma and Seattle were almost full Kremlin to Be Destroyed in 10 Years, Benes Says By ROBERT LETTS JONES America's present foreign policy, if followed by the, democracies of the world, will destroy Russian communism in 1" years. This flat prediction of doom for the Kremlin was made Wed nesday night by Dr. Bohus Benes, visiting professor at Willamette university and nephew of the late president of the Czechoslovak republic Benes included these points in United States policy which has effectively checked Russian expansion in Europe: The Tru man doctrine, Marshall plan, and Atlantic pact. As to the latter, Benes told his audience that 'the Kremlin understands the effectiveness of the Atlantic pact better than you do." "You people should be proud of your leadership . . . Without the Truman doctrine, Greece and Turkey would have been communist today. Without the Marshall plan. France and Italy would be communist today. And without the Atlantic pact, Fin land and Norway would now be behind the iron curtain." "The American people are ir revocably appointed by Provi dence to lead the world out of the present crisis." Benes spoke in Waller hall on the university campus in the last of three lectures on world af fairs he has given during his visit this summer session. lie based his forecast of the I 40 et 8 Day Highlights The 40 et 8, honor and fun-making society of the American Legion, held its one-day conven tion in Salem Wednesday. A sample of its activities is shown here. Top left, the Albany mock locomotive, first-place winner in the stunt division of the 40 et 8 parade is shown as it creeps along -in the line of march. Top right, the Oregon boxcar of the French gratitude train is permanently enshrined at dedication services conducted on the Legion clubhouse grounds; bottom left, a 40 et 8 "goof" from Portland wheels a broken slot machine on a surgery table; bottom right; the Salem 40 et 8 voiture marches in the paarde. Pomp and Humor Given Legion Sho wby40et8 Displaying pomp and humor all the way, the colorful 40 et 8 parade marched, rode, crawled and crashed its way through downtown Salem Wednesday evening to give American Legion festivities for the 31st annual state convention a glorious sendoff. The parade packed plenty of variety. There were elaborate O'Dwyer Oilers Peace Services New York, Aug. 4 (P) Mayor William O'Dwyer has offered to act as peacemaker in an effort to settle the controversy between Francis Cardinal Spellman and Mrs. Franklin D. Roosevelt over federal funds for parochial and other private schools. The mayor, a Roman Catholic, said yesterday he has "equally great respect" for both Cardinal Spellman and Mrs. Kooseveu. O'Dwyer declared he could not believe that the stand taken by the president's widow was the result of bigotry." Cardinal Spellman, protesting to Mrs. Roosevelt against her newspaper column opposition to granting federal funds for non public schools, had told her in a letter: 'Your record of anti-Cathol icism stands for all to see . , . documents of discrimination un worthy of an American mother." Mrs. Roosevelt replied to the cardinal, the archbishop of New York, denying anti-Catholic bias and saying God is the final judge of a human being's worth. Kremlin's destruction in 10 years on the premise that revolts be hind the iron curtain would find the ruling politbureau of Russia unseated by the military He described the Kremlin rulers as "political hacks." Benes revealed that a revolu tion was scheduled for last No vember in Czechoslovakia but was called off by London and Washington. Although 120 per sons lost their lives as a result of the "postponement," the Czech underground was kept in tact for future use. "T h e Western democracies were not ready for such action at that time. But those democ racies are getting ready rapidly now much more rapidly than you realize. The visiting professor, long time student of world affairs, ad mitted that the Far Eastern prob lem was more complicated and dangerous than affairs in Eu rope. He described the advance of the Chinese red hordes as "a i debacle for the United States I not for the Chinese nationalists."1 props as well as crude props The latter group drew the laughs. There were snappy marching outfits as well as in "ten tiorially-disorganized march ing units, each a crowd-pleaser in its own right. , If one were to have made a recording of the parade passing, he'd hear precision drum and bugle corps, off-key singing, old car motors, frequent blasts from a terrifically-loud cannon, and the old, familiar Legion cry "Where's Elmer?" And for background, there would be the constant laughing and applaud ing of the thousands of towns people who lined the curbings for the event. Goofs Give Color Most of the parade color, lit erally speaking, was provided by the "goofs," (40 et 8 initi ates) who were unvoluntarily decked out in bright war paint and varied colors of hair. Awarded first place prize in the stunt division was the Al bany locomotive, a familiar sight at Legion conventions for many years. A sheik and his well-guard ed harem from Hillsboro took top award for the best march ing unit. One of the saber-bear ing guards carried a sign read ing, "Orobsllih"; that's Hills boro spelled backwards. The Ashland kilty band, a troup of genuine Scottish bag pipers, copped first place in the musical division. Their bright plaid uniforms added a bit of pageantry to the march. Miss Oregon There Beverly Krueger of The Dalles, otherwise known as "Miss Oregon," was probably the most streamlined part of the parade. Several Legion and military dignitaries made up the first section. The American Legion grand parade, which promises to be bigger and better than ever and a full two hours in length, will start at 7 o'clock Friday eve ning and follow a winding course through downtown Sa lem. Special Bus Service For Legion Parade Special service will be offered by the City Transit line in con nection with the American Le gion department parade and the Cavalcade at the State Fair grounds Friday evening. Additional buses will be run on the 17th and Market and the Madison street lines as far as the 18th street entrance to the fair grounds by the Madison route. Extra service will be offered on all loop operations at the con clusion of the parade in the downtown area. The parade starts at 7 o'clock and will be concluded in tlmi for the rnlpr- tainment at the fair grounds, GOP Senators Oppose Clark Washington, Aug. 4 VP) Sen ator Taft (R-Ohio) said today that some republican senators are considering opposing the nomination of Attorney Gener al Tom Clark to the supreme court. Taft said Senators Ferguson (R.-Mich.) and Kern (R.-Mo.) raised this issue at a closed-door session of the senate GOP poli cy committee today. In answer to a question, Taft told a reporter: "Yes, there is opposition, but they are uncertain they will do anything about it." President Truman announced at his news conference a week ago today that he was nominat ing Clark to succeed the late As sociate Justice Frank Murphy. He also named Senator J. How ard McGrath (D.-R.I.) to suc ceed Clark as attorney general ijom nominations now are pending before the senate judi ciary committee with a public hearing scheduled for next Tuesday. Ferguson is a member of the committee. Ferguson and Kem criticized the attorney general's action in connection with an investigation of the vote fraud charges in Kansas City in 1948. Chairman McCarran (D.- Nev.) of the judiciary commit tee told a reporter that he had not been informed of the oppo sition to Clark. However, he said the hearing next Tuesday will- be "wide open" if senators or others wish it. Reappraisal Klett Estate Reappraisal of the Hollywood Bowl and Crystal Gardens prop erties of the late Otto A. Klett made by George Grabenhorst, Rex Adolph and Helen W. Gal lagher, cut the valuation of Crystal Gardens as filed in pro bate in the first appraisal from $75,000 to $62,500 and left the Hollywood Bowl appraisal at $65,000 as in the original inven tory. The cut in appraisal of Hollywood Bowl properties is given as being due to "brown rot and track not being well built." The estate's original total ap praisal was placed at $401, 541.25. In an order determining in heritance tax just filed the total valuation of the taxable estate is placed at $389,078.24 with $63,- 159.04 charged off as deductions leaving a net taxable estate of $325,919.20. Value of the inheritance of the widow, Bertha Klett, is plac ed at $198,419.20, and of a brother, Andrew T. Klett, at $127,500. Amount of tax on the widow's share is fixed at $8,273.17, and on the brother's share at $21,976.17, or a total state inheritance tax of $30, 249.34. Exemption granted to the widow under the law is $10, 000 and none to the brother, Golden Gate Span Suicide San Francisco, Aug. 4 VP) A man of about 45 leaped to his death from Golden Gate bridge last night as a highway patrol man ran to grab him. He was the span's 116th known suicide. He wore a bracelet bearing the name Glenn R. Burbank. His address was unknown. Belgrano In Motional Legion Barkley Rules $50 Million Loan To Spain Out Washington, Aug. 4 VP) Vice President Barkley today ruled $50,000,000 in loans to Spain out of the European recovery program. Barkley held that an amend ment sponsored by Senator Mc Carran (D-Nev) violates sen ate rules against writing new legislation into an appropria tion bill. Democratic leader Lucas of Illinois challenged the McCar ran amendment. And then Mc Carran appealed the Barkley ruling. Barkley then told the senate Spain is not entitled under the economic cooperation admin istration act to participate in the recovery program. Hope Approval Today Spain has not adhered to the basic requirements of the act, the vice president said, and to admit Spain into the program would be a violation of the terms of the act. The ruling came as senate leaders strove to free the big foreign aid money bill from the threat of another blockade. Democratic leader Lucas of Illinois said he hoped to get final approval late in the day for the bill, which carries funds for Europe's recovery, army oc cupation costs and aid to Greece and Turkey. Senator McClellan (D., Ark.) told reporters he might force the bill back into the appropria tions committee for the second time. He could do this by chat lenging it on the grounds It contains policy-making laws in violation of senate rules. (Concluded on Pnre 5. Column 7) Breathing Spell In Downturn Washington, Aug. 4 CP) Signs built up today of a breathing spell but probably not a per manent halt in business down turn that has run through 1949 so far. A consensus produced by a top-flight official group of econ omists working as a team boil ed down with some "ifs" at tached to this: 1. The immediate outlook is that economic activity likely will hold at the mid-year level for :he July-August-September quarter, and perhaps may rise a bit in September. 2. Longer-range prospects are darker, because it seems that, on the whole, fundamental re adjustment has not been com pleted and employment, produc tion, income and prices may con tinue to draft downwards from October through mid-1950. The men who drew up this appraisal would not be quoted by name. The longer-range downdrift. it was noted, probably will be obscured from recognition by its piecemeal character, a moderate tempo, and erratic upturns now and then in particular lines. One sign of an economic breather or reversal was said to be "a significant change in the attitude of businessmen (over the country) within the last two weeks," involving a swing to ward optimism. , u 1 iim.iL. ML Ujmlmk V-" Tt v aV t atlHHfli ill 7 111-.' 1 I '"--'MJS Up Goes Old Glory Members of the Fourth Infantry regi mental combat team conduct flag-raising ceremonies on the courthouse lawn Thursday morning to give the 31st annual American Legion convention a patriotic start. The second di vision band from Fort Lewis played for tha occasion. Raps Corruption ! I 'Nil yd J.-tfl.Tira.' - t " Frank N. Belgrano, Jr. 3 Nations Agree On Defense Plan London, Aug. 4 (P) Amer ican joint chiefs of staff have reached a complete understand ing with Britain, Norway and Denmark on organization for mutual defense under the At lantic pact, Adm. Louis E. Den- field announced today. "We are going home, I am sure, with a very much better understanding of the situation than -" we had when we came over," the U. S. chief of naval operations told a news confer ence following meetings with Norwegian and Danish military commanders. Adm. Denfield spoke for the joint chiefs. The Subject - of sharing the atom bomb with other Atlan tic treaty signatories was not mentioned in the staff talks, Denfield told a questioner. "There was no general dis cussion of arms aid," he added "Our purpose in coming here was to exchange ideas on prop er organization." The Scandinavian delegations met the American officers in separate conferences at U. S naval headquarters in London. Each group spent more than an hour with the Americans. The conferences were conduct ed under the same conditions of secrecy as yesterday's meeting with British military leaders. Armed guards made certain on ly actual participants entered the conference room. Navy's Blue Angels Here from Texas The "Blue Angels," the navy's official exhibition team and fa mous for close precision flying, have arrived. In fact they arrived a day ear ly Wednesday night at 8:15 o'clock much to the consterna tion of hotel clerks, who had reservations for the men start ing August 4. The five F8Fs and the R4D, bringing the six pilots and the eight crew members to Salem came direct from Corpus Christi, Texas, and instead of being pre ceded by the advance publicity man for the team, Lt. Frank Gra ham, were in Salem before Gra ham arrived. Hotel accommodations not be ing available the 14 men were given rooms in private homes and Thursday moved to their ho tel. i mm Politics Declares War On Racketeers Of Hierarchy By CHRIS KOWITZ An oral jack-in-the-box leaped from the speaker's platform of the Elsinorc theater Thursday morning as Frank N. Belgrano, Jr., past national commander, delivered a shocking speech about corrupt Legion politic that dazed 1200 state Legion coo, vpntinn rlplno-n loc ' Belgrano, now president of the First National Bank of Portland, had not previously announced the topic of his talk. Legion of ficers, convention committee men, and newsmen were not in formed as to what he would talk about. Belgrano kept it to him self until he delivered his tongue-lashing at the opening joint session of the 31st annual convention. It came as a surprise to ev eryone. Speakers at such occa sions usually speak on some sort of patriotic or public service note. "Well Oiled Machine" But not Belgrano. He called the national Legion leaders "a well oiled machine" which at tempted to run the Legion for their own personal interest. The speaker said that the Le gion has become a powerful or ganization, one of the most im portant controlling factors in the economic and governmental standing of the United States to day. "Therefore," Belgrano ex plained, "a person who is a lead er in the Legion is able to con trol much in the manner ho sees fit. Belgrano explained this further by saying that a Legion leader carries enough power to i:iiini nun to gain recognizance from the nation's leaders. Handling Legion Funds The speaker didn't beat around the bush in his remarks. He made it quite evident that he was referring to the national Le gion leaders now in office. (Concluded on PaRe 5, Column 6) Drum and Bugle Contest Tonight Keen competition is promised spectators of the American Le gion drum and bugle corps con test on Swcetlnnd field at 8 o' clock Thursday night. A band concert will precede the contests by a half hour. The LaGrande corps, last year's champions, will be on hand to defend its crown. Several other drum corps teams throughout the stale have been priming for Thursday's event, and LaGrande is much concerned over the safety of its crown. Ashland post's Kilty band, clad in bright, genuine Scotch plaid and playing authentic Scitlish bagpipes, will provide special entertainment at the drum corps meet. Three members of Portland post No. 1 will depict the "Spir it of '76." After the contest's comple tion, the competing teams will make their traditional invasion of the downtown section of the city, hammering drums and blowing bugles through streets, sidewalks, restaurants, taverns, hotel lobbies, etc. Another big event slated for Thursday evening is the grand convention banquet in the ar mory at 6 o'clock. About 800 diners are expected to be on hand to pay tribute to Mrs. Hu bert A. Goode of Portland, national president of the wom en's auxiliary. New England States Disaster Areas Boston, Aug. 4 W) All New England states except Maine were listed as disaster areas be cause of the extended drought today. Farmers who have exhausted all credit sources in Massachu setts, New Hampshire, Vermont, Connecticut and Rhode Island now are eligible for low-interest federal loans. Maine has had more rain than the other five states. Some sections of drought- parched New England received nme relief yesterday from rain. The fall in Massachusetts was one-half inch.