THE WEATHER HERE
GENERALLY FAIR and slight
ly warmer tonight and Sunday.
Lowest temperature tonight, 52;
highest Sunday, 82.
Maximum resle rday. HI t minimum In
day, M. Total 21-hour precipitation, .11
for month, .IS; normal .03. Season Pr
rlpitatlon, 42.03 1 normal. S7.S5. River
helrht. -S.4 (eet, (Report by t'.S. Weather
Bareau.)
Journal
HOME
EDITION
61st Year, No. 186
Catered ti leeond elut
matter t Salem, Oregon
Salem, Oregon, Saturday, Augurc, '
Price 5c
C apital
Council lo Set
September 30
For Merger Vole
3 Ordinances to
Be Introduced at
Monday's Meeting
By STEPHEN A. STONE
Three ordinance bills will be
introduced at the city council
meeting Monday night that will
tentatively set Friday, Septem
ber 30, as the date for special
elections in Salem and provide
for measures to be voted on.
These will include the Salem
West Salem merger.
The first bill will initiate an
act amending Section S of the
city charter pertaining to city
offices. It will create an eighth
ward and provide for eight al
dermen instead of the present
seven. It will not fix the boun
dary of the proposed new ward,
that being a function of the
council.
Election September 30
The second bill will call a
special election tentatively Sep
tember 30 to vote on the above
mentioned charter amendment
and any other measures the
council may initiate, or any
measures on which the people
may invoke the referendum.
This is in anticipation that the
referendum may be invoked on
the Baldock plan.
The third bill to be introduc
ed Monday night will submit to
the people the proposed merger
of Salem and West Salem, and
will set the date for the special
merger election also tentatively
on September 30.
8 Polling Places
Tentatively the bills provide
for eight polling places in both
elections one in each ward, ex
cept ward 3, which would have
two polling places, one on each
side of the river. Ward 3 is the
one of which Kingwood annexa
tion in Polk county is now a
part and of which West Salem
will be a part if it is merged.
One board in each ward would
serve for the simultaneous elec
tions. (Concluded on r-Rtre It, Column 8)
Reserve Board
Eases Credits
Washington, Aug. 6 VP) The
government, which this week be
gan borrowing to meet . its ex
penses, may be the chief gainer
from the newest "easy credit"
move by the federal reserve
board.
The board yesterday ordered a
cut in reserve requirements the
proportion of deposits that banks
may not lend in order to make
an extra $1,800,000,000 availa
ble for loan or investment this
month.
It was the third time this year
the board has thus increased the
supply of loan funds available,
besides taking such other business-bracing
steps as removal of
consumer credit restrictions, and
making it easier to buy stocks
on credit.
Neither of the previous cuts in
bank reserve requirements, the
latest of them in early May,
made even a dent in the record
breaking $2,750,000,000, 27-week-long
drop in bank loans to
business. That drop lasted until
- this past week.
As businessmen shied away
from borrowing money for the
purchase of goods they might
get stuck with in a price decline,
they sought others ways to in
vest their money. One result
was heavy purchases of govern
ment securities from other in
vestors. Ochoco Forest Fire
Now Under Control
Prineville, Ore., Aug. 6 VP)
The Ochoco national forest's
third fire this week was brought
under control today by smoke
chasers provisioned from a
plane.
A crew of 200 circled the 150
acre blaze in country so rugged
that food and water had to be
parachuted to the men. All but
50 of the fire-fighters who
will remain for mop-up opera
tions were to be recalled to
night. Forest service pilot Larry
Sohler flew over the area again
this morning to drop breakfast
to the men. Their dinner was
parachuted to them by the same
system yesterday.
The fire was in rugged can
Jon country on the south fork of
the John Day river. The tim
ber there is chiefly scrub.
Hawaiian Law
For Seizure of
Docks Passed
Territorial Govern
ment Empowered to
End Long Strike
Honolulu, Aug. 6 VP) Ha
waii's legislature today passed a
bill empowering the territorial
government to seize the islands
strikebound docks. Earlier,
striking CIO stevedores voted
unanimously to refuse to work
for the government.
Final passage of the legisla
tion designed to end the 98-day
waterfront tieup came at 2:40
a. m. in the 10th day of a special
session called by Gov. Ingram
M. Stainback.
Late last night senate and
house conferees agreed on the
measure which directs the gov
ernor to take over the islands'
seven struck stevedoring firms.
It also calls for hiring, as far as
possible, the 2000 striking mem
bers of the International Long
shoremen's and Warehousemen's
union at the pre-strike $1.40
hourly wage.
The house approved the con
ference report by a 24-to-6 vote.
The senate's approval was unan
imous 14 to 0.
(Concluded on Faee 5. Column 5)
Business Held
New York, Aug. 6 VP) For
ward buying by businessmen
and a spurt in home building
lessened the impact of the reces
sion this week.
There were many indications
the declining economy was lev
elling off in some fields, at least
temporarily.
Earl R. Muir, president of the
Louisville, Ky., Trust company
and a spokesman -for the Amer
ican Bankers' association, put
it this way:
"We are going through a very
fine period of readjustment. We
are getting, bettor productivity
from labor which has reduced
building costs. Retail business
has been lowering its inven
tories."
He noted some slight pickup
other than seasonal. He said
there can be no real depression
when prospective purchasers
have some $175,000,000,000 in
savings and bank deposits.
Economists thought business
probably would hold at mid
year levels through September;
that at the end of the quarter
there might be a turn upward.
But they felt employment and
production might start down
ward again in the closing
months of the year and continue
a declining course until mid
1950. Some Real Showers
Sprinkle Valley
Some real showers came down
the Salem area Saturday
morning, the precipitation total
ing .16 of an inch in the 24-hour
period ending at 11:30 a.m.
Normal rainfall for August to
date is .03 of an inch, so the
Saturday showers bring the total
to .13 above normal.
The weather bureau is predict
ing generally fair weather to
night and Sunday and slightly
warmer temperatures.
Cardinal and Eleanor
Bury the Hatchet
New York, Aug. 6 VP) Francis Cardinal Spellman has issued
i new statement on federal aid to education and Mrs. Franklin
D. Roosevelt, who has disagreed
termed the message "clarifyinf and fair."
The statements followed a telephone call from the Cardinal to
the wife of the late president S
The Cardinal said he acted to
clear up "many regrettable mis
understandings" concerning the
position of the Roman Catholic
church on the issue.
In his statement, issued sim
ultaneously last night with one
by Mrs. Roosevelt, the New York
archbishop said his church seeks
public funds solely for "aux
iliary services" of parochial
schools.
"We are not asking for gen
eral support of religious schools,"
he said.
Mrs. Roosevelt, whom the Car
dinal had called "anti-Catholic"
for her opposition to federal aid
to secretarian schools, said the
Cardinal had telephoned her and
asked me to go over a state
ment which he would like to release."
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Legionnaires on Parade Event of Friday night was the
Legion's grand parade for which thousands lined the streets
of Salem. At top is the LaGrande drum and bugle corps,
state champions in the drum and bugle corps contest. Below,
the mass color guard from the three Salem American Legion
posts.
Salem s Greatest Throng
Views Legion Parade
Uncountable thousands lined up six deep on Salem's down-town
curbings Friday evening as the
parade of the 31st annual department oi vregon convention, jne
turnout was so, tremendous that crowds were actually forced to
Taylor to Head
Forces in Berlin
Berlin, Aug. 6 VP) Ma. Gen.
Maxwell D. Taylor, wartime par
atroop leader, officially was
named today to command the
American military government
and arm forces in Berlin.
He will be given this double-
barreled authority, a formal
statement said, "in order to unify
the United States position in
Berlin."
The statement said he would
assume his position at a date to
be announced later, but presum
ably in September.
Taylor will succeed both Brig.
Gen. Frank Howley, military
government commandant, and
Col. James T. Duke, who has
commanded the Berlin military
post.
The statement, issued by the
headquarters of U. S. army forc
es in Europe, said Taylor would
be the personal representative
of High Commissioner John J.
McCloy and Lt. General Clar
ence R. Huebner, acting commander-in-chief.
with the church leader's stand.
"I have read it," she added,
"and think it a clarifying and
fair statement."
Both statements were releas
ed at the chancery office of the
New York archdiocese.
They came two days after
Mayor William O'Dwyer had
expressed hope, the two could
get together to reconcile their
differences.
The Cardinal said the Catho
lic church does not expect, nor
ask public funds for school con
struction, maintenance and
teaching services.
But he said parochial school
children should share with pub
lie school children in funds for
transportation, school lunches,
health programs and non-re
ligious textbooks.
O Q
American Legion staged its grand
"turn back.
Police report that 5000 peo-
pie who attempted to see the
parade were unable to do so be
cause of a huge traffic jam which
had cars lined up for five
miles on the Salem-Dallas high
way and tied up every parking
spot for several blocks in every
direction of the downtown dis
trict.
The La Grande drum and bu
gle corps, which won its second
title in a row at the 'state drum
and bugle competition Thursday
night, added new laurels Friday
night when it was judged the
best musical unit in the con
vention grand parade through
downtown salem.
The Astoria drum and bugle
corps which placed second to
La Grande in the Thursday night
competition also placed second
in the parade. The Ashland Kil
tie band was third.
Marching winner was the
Hillsboro auxiliary drill team,
followed by Coquille's unit, sec
ond, and the Yamhill majorettes.
One of the popular features of
the parade was the U. S. army's
showing of musicians, troops,
vehicles and weapons. The army
was represented by the 2nd in
fantry band and more than 300
troops of the 4th infantry regi
mental combat team.
Another applause-provoking
entry was the Linn county voi
ture, 40 et 8, locomotive and
boxcar driven by Frank Koos
Earlier in the day, the chil
dren conducted a parade of their
own, with first place prize going
to Deborah Lamb, 840 North
Cottage street, and Jill iCum
mings, 1511 D street, with a
float that was designed as a min
iature 40 et 8 locomotive and
box car.
Boeing Production
May Be Diverted
Washington, Aug. 6 VP) T h e
air force has confirmed reports
that it is considering the transfer
of some Boeing bomber plane
production from Seattle to the
company's Wichita, Kas., plant.
A spokesman said later yester
day Secretary of Air W. Stuart
Symington, members of his staff,
and Senator Magnuson (D.
Wash.) will fly to Seattle late
this month for conferences with
Boeing officials.
Magnuson reported the entire
production situation will be dis
cussed. He emphasized, howev
er, that any changes would only
involve a shifting of work be
tween factories and would
not
mean cancellation of current a seven-foot tarpon while fish
contracts for work being done jing in his new yacht off the coast
in Seattle. of San Sebastian.
If VV
i . 4 - - A
Miller Hayden
Gets Tax Job
BY JAMES D. OLSON
Miller Hayden, former Mari
on county district attorney, who
was defeated in the May, 1947,
primary election by present
District Attorney E. O. Stadter,
has been employed by the stale
tax commission.
Hayden was placed on the
payroll of the income tax de
partment through orders of
Commissioner Ray Smith on
August 1.
He has been assigned lo field
work in connection with collec
tion of delinquent income taxes,
working out of the Portland of
fice of the commission.
Third Effort Succeeds
Hayden first sought employ
ment in the utilities division of
the tax commission but Tax
Commission Chairman Carl
Chambers informed the former
Marion county official he had
no vacancies.
An attempt lo be placed on
the payroll of the tax and assess
ment division, over which Com
missioner Robert Maclean is in
charge, likewise failed.
However, Commission er
Smith provided the job, and
Hayden was certified for em
ployment last Monday.
Registration Changed
Several months ago Hayden
moved from Salem to Portland,
where he entered the office of
State Senator Tom Mahoney.
democrat. Later it was reported
that Hayden had changed his
registration from republican to
democratic rolls.
Commissioner Smith left early
Friday for Portland to spend the
week end and hence was un
available for any comment on
the appointment.
It was stated in his office that
Hayden's work would be in var
ious counties, where he is ex
pected to check county records,
in running down delinquent tax
payers. Pays for Dinners
By Jail and Fine
What happens when a man or
ders food for himself and friends
at a restaurant and is unable to
foot the bill?
Richard June Harling, route
7, found the answer to that ques
tion Saturday in Salem. He or
dered for himself and several
other persons Friday night and
then refused to pay for the
check, claiming he was unable
to do so.
Instead of an offer of the pro
verbial dishwashing job offer,
the management called police.
Harding was jailed on a drunk
charge and sentenced to spend 30
days in jail and pay a $25 fine.
Tarpon Douses Franco
Madrid, Spain, Aug. 6 (U.B
Unconfirmed reports said today
that Generalissimo Francisco
Franco was yanked overboard by
660 Killed, 5000 Injured
By Central Ecuador Quake
. .
Legion Votes for
State Pensions
For Veterans
The American Legion in Ore
gon broke with its past tradition
today and voted to support a
state bonus for veterans in Ore
gon. State bonuses were turned
down by the last two state Le
gion conventions.
The 612 delegates adopted a
resolution favoring a state bonus
for World War II veterans by a
voice vole tins morning. They
recommended a bonus of $10 for
each month of domestic military
service and $15 for each month
of overseas service, with a maxi
mum of $900. That is similar to
bonuses enacted by several
states.
Cited Stay at Homes
Advocates of the proposal ar
gued that "stay-at-homes" re
ceived a kind of bonus during
the war years, when the state of
Oregon forgave part of the in
come tax.
(Concluded on Page 5, Column G)
New Model for
Brannan Plan
Washington, Aug. 6 VP) A bi
partisan senate group today of
fered Secretary of Agriculture
Brannan a compromise model of
his new farm program. They
expected the administration farm
leader to back it.
If he doesn't, senators said, he
probably will get a farm plan
that he has publicly branded as
much worse.
Brannan was invited to f
closed-door session of a seven-
man agriculture . subcommittee
headed by Senator Anderson (D.,
N.M. ), who proceeded him as
secretary of agriculture.
After much tugging and haul
ing, Anderson has achieved
agreement among disputing sen
ators for a new farm program
that appears to pick up a few
suggestions from all opposing
camps.
It would continue through
next year government price sup
ports on corn, wheal, tobacco,
rice and peanuts the so-called
basic crops at near the present
and wartime levels.
II would do the same thing
for a long list of non-basic crops
that can be stored, such as oats,
barley, rye, meats, butler and
similar products.
It would allow Brannan un
der numerous limitations to
try out "production payments"
on non-basic crops that are per
ishable probably fresh vegeta
bles, oranges, grapefruit, and
other fresh fruits.
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Queen of Hearts Little Miss Glenda Lee Halsey of 740
Ferry street, who in her Queen, of Hearts costume was a second
place winner in the Legion's Children's parade held Friday afternoon.
Sam Bowe of Grants Pass,
slated to be new state com
mander of the American Le
gion. European Unity
Meeting Called
Paris, Aug. 6 VP) Leading
statesmen of western Europe
will assemble at Strasbourg Mon
day to consider proposals de
signed to give concrete expres
sion to the centuries-old dream
of European unity.
This inaugural session of the
council of Europe will give its
attention to practical problems
having to do with public works,
patents and social security. One
major proposal expected to be
considered calls for the crea
tion of an international Euro
pean passport.
It is the hope of many of
western Europe's leaders that
the decisions taken wHT-con
stitute a sizable advance toward
a distant goal a real United
States of turope similar-' to.'
America's federal system'of. gov
ernment.
American dollars already have
broken the ground for the build
ing of continental unity. For
more than a year the organiza
tion for European economic co
operation (OEEC), an adminis
trative agency of the Marshall
plan, has been making practical
decisions in its lfl member areas.
As yet no contract has been
made between the OEEC and the
council of Europe. This may
be done after the council gels
organized next week.
Oleo Prices Advance
Portland, Ore., Aug. S U.B
The price of margarine and oth
er butter substitutes advanced
two cents a pound for most
"name brands" here today. Dis
tributors said the price hike was
due to an increase in govern
ment support prices for cotton
seed.
City of Ambato
Hardest Hit of
Score of Towns
Quito, Ecuador, Aug. fi U.R)
The death toll in the earthquake
which devastated central Ecua
dor yesterday mounted to 660 to
day. Nearly 5000 persons were
injured.
Red Cross and army relief un
its working under the personal
direction of New York-bom
President Galo Plaza also re
ported that nearly 30,000 per
sons were homeless in the 2300-square-mile
area racked by th
earthquake.
Hardest hit was the city of
Ambato, in the center of the de
vastated area 70 miles south of
Quito. Ambato alone counted
560 dead and almost 4000 injur
ed, according to official sources.
One third of the city was de
stroyed. 2000 Buildings in Ruins
At least 2000 buildings in that
city of 20,000 persons were in
ruins. They included almost the
whole industrial area of textile
mills, a modern rubber factory,
a large cannery, flour mills and
tanneries.
Plaza set up his headquarters
in an army tent in the center of
the main square of Ambato after
flying from Quito. Nearby were
the ruins of the Ambato cathed
ral, where 60 children receiving
religious instruction and their
priest-teacher, were killed.
A score of other towns, in
cluding Latacunga, Salcedo.
Squisili and Pujili, also were
hard hit. They are strung out
along the Pan American high
way, some 50 miles north and
south of Ambato.
Highway Wrecked
Parts of the highway itself
were wrecked by the temblors,
delaying relief expeditions. How.
,er, army plane began a shut?
tfe -servlcfe-betwecn Quito and
the affected towns, carrying doc
tors, nurses, medicines, army
tents and other supplies.
(Concluded on Taft S, Column t)
Red Cross Offers
Aid lo Ecuador
Washington, Aug. 6 (P) Basil
O'Connor, -president of the
American National Red Cross.
cabled the Red Cross society of
Ecuador that medical supplies
and food will be sent to the
stricken area if needed. He ask
ed for a report on the damagt
done.
By telephone to Panama, the
American Red Cross ordered
Deputy Director Kreth of its
Caribbean operations, to make
available medical supplies and
food that the Red Cross society
of Ecuador may request. Offi
cials said such supplies could
be provided from depots in the
Caribbean, if requested.
O'Connor also notified the
League of Red Cross Societies In
Geneva, Switzerland, of the dis
aster so that Red Cross organ
izations in other parts of the
world may assist.
Augusto Dillon, the Ecuador
ean ambassador, confirmed that
500 persons were officially re
ported dead in Ambato alone.
The ambassador expressed fear
that the death toll will continue
to mount as rescue workers dig
further into the debris.
"It is a terrific blow to Ecua
dor," he told reporters. "I am
sick at heart."
Negro Can't Write
But Forged Checks
Miami, Fla., Aug. 6 VP) A 25-year-old
Negro who says he can
not read or write is serving a
prison term for forgery.
The Negro, Lewis West, was
sentenced to one year and 11
months in federal prison yester
day by Federal Judge John W,
Holland. He pleaded guilty to
forging endorsements on four
government checks totaling
$100.
Secret service agents said West
simply marked an "X" on the
backs of the checks which he
told them he obtained from a
mail box at the address where
he lived.
He then persuaded neighbor
hood merchants to cash the
checks for him by telling them
he was unable to read or write,
the agents said.