Capital jk Journal
HOM E
EDITION
l Pet.
1 68 Mi
) 6S .420
17 .143
180 J3
61st Year, No. 198
'Enteral aj aeeond tu$
matter l Salem. Orecou
Salem, Oregon, Saturday, Aug
Price 5c
THE WEATHER HERE
FAIR TONIGHT and Sunday,
except some morning cloudi
ness. Slightly cooler tempera
tures. Lowest tonight, 50; high
est Sunday, 78.
Maximum yeiterdir, 84; minimum to
day, 51. Total 24-hour precipitation: lit
for month: ,3H; normal, .23. Season preci
pitation, 42.2.1; normal, 37. Bl. River heifht,
.l.ff feet. (Report by U.S. Weather Bu
1 reau.)
Personalities
Predominate in
Miller Hearing
Appeal Taken Under.
Advisement by Civil
Service Board
After a stormy session, in
which personalities predominat
ed, the state civil service com
mission took the appeal of Dr.
Horace Miller, discharged state
hospital psychiatrist, under ad
visement. A decision is not ex
pected for a week or two.
Dr. Dean K. Brooks, a physi
cian at the hospital, testified
Friday afternoon that Dr. Mil
ler had told him that Dr. Charles
- E. Bates was a "liar, two faced
ana a cneai.
Brooks' Testimony
Dr. Brooks said that during
the same conversation Miller
had told him that "Bates would
build him up and then sacri
fice him, like he had done oth
ers." On cross-examination Dr. Mil
ler admitted the conversation
with Brooks but denied making
some statements credited to
him.
Miss Pearl Peterson, nurse,
testified that Dr. Miller exhibit
ed much respect for hospital pa
tients and used restraint only
when necessary. It had been in
timated earlier in the hearing
that Dr. Miller had been "too
rugged" on patients and for that
reason was removed from su
pervision of three wards.
(Concluded on Page 5, Column 8)
Seattle Fights
For Boeing's
Seattle, Aug. 20 fa A ci
committee opened a fight today
against any further shift of Boe
ing bomber production work
from Seattle to the mid-west.
Its members challenged espe
cially the statement of an air
force spokesman that Seattle is
considered "vulnerable" to air
attack from Russian territory.
In a statement issued for the
Chamber of Commerce, Presi
dent Nat S. Rogers declared that
if the Pacific northwest can be
defended against any possible
enemy "then there is no impell
ing military necessity for remov
al of any of our industries.
If it cannot, he added, "then
it is high time we know about
it and that plans are made for
the complete and effective de
fense." He cited the Hanford atomic
plant, the Bremerton navy yard,
Columbia river dams and Fort
Lewis as installations that make
adequate defense of the area
imperative."
"It is unthinkable," Rogers'
statement continued, "that those
leaders charged with the respon
sibility of defending the nation
would even infer that the Paci
fic northwest cannot be success
fully defended."
E. L. Skeel, chairman of the
civic committee, declared:
"We do not take the position
the die has been cast so far as
the nation as a whole and ulti
m a t e higher authority is concerned."
,t Got $50 a Day
For CVA Boost
Washington, Aug. 19 (P
Washington's republican Senator
Cain told the senate that a Walla
Walla attorney, who wrote an ar
ticle favoring the Columbia Val
ley Administration, had been
$50 a day boy" for the interior
department.
The attorney, Charles Luce,
promptly agreed that it was true,
and asked what was wrong with
that,
Luce's article was inserted in
the Congressional Record by
Washington's democratic Senator
Magnuson, who favors a CVA.
Magnuson described Luce as a
prominent attorney.
Then Cain, who opposes a
CVA, told fellow-senators yes
terday that they should know of
Luce's connection with the inte
rior department in evaluating
his CVA stand.
Contacted at The Dalles, Ore.,
last night, Luce said it was no
secret that he had been employ
ed to prepare testimony for CVA
hearings at "the usual basis
$50 a day."
"If the government wants to
hire me for organizing a hear
ing, I expect to charge them
Something." he said. "So far as
I know, Mr. Cain is not work-1
ing for nothing."
Liquor Revenue
Drops Over
$1.5 Million
Number of Permits
Issued Down,
Official Report Shows
By JAMES D. OLSON
Revenue from liquor sales in
Oregon dropped $1,568,445.65
during the fiscal year ending
June 30, 1949, as compared with
receipts during the 1947-48 fis
cal year, according to a report
made by the Oregon Liquor
Control commission Saturday.
Net sales from stores, agen
cies and the commission ware
house during the last fiscal year
totaled $39,615,307.63 as against
sales amounting to $41,183
753.28 in the previous fiscal
year.
Earnings of the commission
during the year showed even a
greater decline, dropping $1,-
920,377.91 below the earnings
recorded for the 1947-48 fiscal
year, the report shows.
Permit Sales Also Down
The greatest drop in earnings
of the commission took place
during the quarter ending Sep
tember 30, 1948, when the de
crease from earnings in the
same quarter a y e a r previous,
was $697,132.59.
Liquor permits sales also
dropped with 348,278 sold dur
ing the last fiscal year as com
pared to 361,988 sold during
the previous fiscal year.
Receipts from the license divi
sion increased $60,437.01 and
expenditures of the license divi
sion dropped $88,009, the report
discloses. The privilege tax divi
sion also showed an increase, its
receipts being $77,480.47 higher
man the receipts during the
1947-48 fiscal year.
(Concluded on Page 5, Column 7)
Asks U.S. Aid
On River Control
County Judge Grant Murphy
has directed a letter to Con
gressman Walter Norblad sue
gesting that government funds
be allocated to assist river im
provement project now being
undertaken by private funds at
the confluence of the North and
South 'Santiam rivers.
The county judge states that
the local people are making a
heroic effort with their own
funds to clean . and straighten
the channels on both sides in
Marion and Linn counties for
about 5000 feet and he says,
if this is successful, it would
protect about 5000 acres of rich
bottom lands from the vagaries
of the streams.
The county judge advises the
congressman he fears that the
project may fail unless avail
able funds are bolstered by gov
ernment aid, but, with this, he
believes it can be brought to
successful conclusion.
Flood Death Toll High
Prague, Czechoslovakia. Aug.
20 W The death toll in Slovak
rainstorms and floods this week
has risen to at least 25, Czech
press reports said today. A pre
liminary toll of 16, announced
Wednesday, was increased by
delayed reports from remote
villages.
3 Year Sentence for
Slipping File to Todd
Delores Todd, who in early June slipped hacksaw blades into
the Marion county jail, later used by her husband, Jack O'Neill
Todd in an all-night futile attempt to escape, Saturday received
sentences of three years in the penitentiary on the aidjng to escape
charge and 18 months to the same place on a charge of having
illegal possession of. narcotics.
The sentences are to run cun
currently and the woman is
given three years probation
turned over to the parole board
and is to return to the home of
her parents in Wisconsin. She
appeared before Judge George
R. Duncan.
When her husband Jack Todd,
secured the hacksaws which she
admitted slipping into him, he
staged a jail break attempt which
was discovered by the officers
who watched him saw bars early
in the morning. When he step
ped out of the jail they were
standing by to pick him up.
Lester Johnson, charged with
larceny, pleaded not guilty and
was continued for a trial date.
Roland F. Griswold charged
with larceny of a car pleaded
guilty and was continued for
sentence until matter nertainino
to his past record are straieht-
jened out. He was a former in-
Hobby Horse Day at Highland These youngsters, all prize
winners with hobby horse entries, stage a final race to the
candy bars, their reward for winning events on the hobby
horse racing program. Shown are Loren Whitiger, Bruce
Smith, Dennis Greg, Darlene Meyer, Kay Miller, Dolores
Kraft, Gary Kraft and Suzanne Harmon.
Final Action Due on
BaldockPlan Monday
The Salem city council is being ultra-considerate to opponents
of the Baldock street and traffic plan.
The three ordinance bills covering the plan, also a resolution,
will be before the council Monday night for final actios.
Many hearings have been held, including those regularly set
Canton Neared
By Chinese Reds
Canton, Aug. 20 (P) Press
reports said today the national
ists had sped strong reinforce
ments into the mountains less
than 170 miles northeast of Can
ton in an attempt to check the
Reds' southward rush.
These reports probably are
true, because large numbers of
troops have been passing through
Canton for the north the past
few days. '
The loss of Tayu, 170 miles
northeast, put the communists
only five miles from the bor
der of Kwangtung province, of
which Canton is the capital as
well as the temporary haven of
the government.
The nationalists also admit
ted the loss of Anjen, 250 miles
north of Canton and a key point
on the eastern flank of the Canton-Hankow
railroad.
The fall of Anjen means the
Reds are bypassing-the Hunan
province defense bastion of
Hengyang on the east and sug
gests they are trying to cut the
rail line at Leiyang. Leiyang is
230 miles north of Canton and
70 miles north of the Kwang
tung border.
(Philippine consular officials
arriving at Manila from Amoy
said that big sport on the south
east coast appeared about to fall
to the communists. The 18 mem
bers of the staff reported that
in fleeing the city they passed
within range of the fighting close
to Amoy. (Amoy is the best port
left to the nationalists.)
Bad news also came from the
far northwest. An official dis
patch said the communists had
pressed to a point only 12 miles
southeast of Lanchow before be
ing thrown back. Lanchow is
the capital of Kansu province
and a nationalist stronghold.
mate of the state training school
and has had several brushes with
officers of the law but denied
he'd ever been wanted in Michi
gan for arson, which Deputy Dis
trict Attorney Sam Harbison
said had been indicated in his
record. Griswold said he'd nev
er been in Michigan and he was
being mixed up with someone
else and the court allowed him
time for a checkup. He will be
up again next Saturday at 9:30
a.m.
Earl Knothe pleaded not guilty
to a charge of contributing to
the delinquency of a minor and
he was continued for a trial
date, his bail being kept at $1,-
000.
Olin G. Diggs, charged with Is
suing a bank draft without
funds in the bank, was given to
9 a.m. Tuesday to get an attor-
ney.
as public hearings before the
city council. Although it is con
trary to regular procedure the
council is throwing the matter
open again Monday night for
everyone to have a go on the
subject, either on the council
floor or from the gallery.
Another midnight session is
in prospect.
One of the bills provides for
the one-way grid system. An
other of the bills is timed to be
effective with completion of
proposed new bridge across the
Willamette, probably at Marion
street, and provides for one-way
traffic on the bridges and streets
to and from the bridges. The
third bill pertains mainly ,to. ye
hicular parking.
Among other matters on the
council agenda will be third
reading of bills providing for a
special election October 14 on
the West Salem merger issue,
creation of a new city ward to
cover the Kingwood annexation
and West Salem if it is merged,
and also other matters that may
be initiated or on which the re
ferendum may be invoked. It is
anticipated the referendum will
be invoked against the Baldock
bills.
One other question that prob
ably will be voted on at the
same time will be annexation of
a large area south of the city.
Petitions for the election have
been completed. It is under
stood some protest against the
measure will be made Monday
night.
Finn Strikers
Ordered Back
Helsinki, Finland, Aug. 20 (IP)
Finland's Central Trade Un
ion Federation has acted against
the communist-led unions' grow
ing offensive. It ordered them
to cancel their strike call or face
expulsion
The move which threatened to
split the federation wide open,
came on the heels of a govern
ment crackdown on the nation
wide strike offensive which al
ready has caused bloodshed.
By a vote of eight to five, the
federations executive commit
tee decided to order four strik
ing unions to call off their walk
outs before August 23 or get
out ol the federation.
The move was directed against
the dockers; food workers,
building construction workers,
and the forestry workers' and
loggers' union.
The federation made it clear
that the textile, leather, shoe
and rubber workers union, who
also have scheduled strikes,
would be kicked out if the strike
calls are not cancelled.
Meanwhile, the Finnish com
munist party called on President
Juho Paasikivi to denounce
Thursday's police action against
striking lumberjacks at the
northern village of Kemi.
A letter to Paasikivi claimed
the clash was the first in the
history of the Finnish labor
movement In which police on
government orders 'had used
firearms against unarmed strik
Grain Loaded at Astoria
Astoria, Ore., Aug. 20 IIP) The
first ship to be loaded with grain
in this port since the 1920s was
being filled with barley today.
The P & T Explorer docked here
yesterday to take on grain for
export.
Crackdown on
Huge Drug Ring
New York, Aug. 20 UP) A
vast illicit drug ring so pow
erful that it sparked an abortive
revolution in Peru and involved
United Nations action was ex
posed here yesterday with the
arrest of the alleged ringleader.
Authorities called the arrest
the first high point in an inter
national crack-down on a huge
smuggling syndicate which has
plied a $500,000-a-month co
caine trade between the U.S.
and Peru.
American, Peruvian and UN
authorities joined in a two-year
drive to smash the ring, said to
have used narcotics profits to
arm insurgents in Peru in an
attempt to seize control of the
country.
The story of political intrigue
and plotting, tied in with large-
scale drug traffic, was unfolded
with the seizure yesterday of the
alleged ringleader, Eduardo Ba
larezo, 48, of Great North River,
Long Island.
He is a naturalized U.S. citi
zen of Peruvian descent.
More than 80 persons, some of
them prominent business men
have been arrested in Peru, au
thorities said, and 50 or 60 oper
atives in this country are be
lieved connected with the ring.
Hawaii Asks
U. S. Mediation
Honolulu, Aug. 20 IP) Dead
locked union and employer nego
tiators in Hawaii's 112-day dock
strike asked for federal media
tion today.
After three days of renewed
peace talks got nowhere, both
sides cabled Federal Conciliator
Cyrus Ching to come to Hawai
"as quickly as possible."
Harry Bridges, head of the
striking CIO International Long
shoremen's and Warehousemen's
union, and Chairman W. R. Starr
of the struck stevedoring firms'
negotiating committee joined in
sending the cable yesterday.
Then they called a recess un
til Ching replies. Ching has in
dicated he won't be able to come
here but would be glad to meet
both sides in Washington. The
union is willing to go. Employ
ers don't like the idea.
The 2000 ILWU longshormen
of Hawaii struck May 1 for a 32-
cent wage increase. They now
draw $1.40 an hour.
Hardly had the peace talks
gone into recess than the terri
torial government began its con
tempt action against the union.
Bridges personally defied a
territorial circuit court injunc
tion against picketing govern
mcnt dock operations. But he
was not named specifically in
the complaint issued by Attor
ney General Walter D. Akerman.
Jr ,
Peru Breaks Off
Cuban Relations
Lima, Peru, Aug. 20 (IP) Peru
broke off diplomatic relations
with Cuba yesterday.
The government delivered a
note to the Cuban charge d'af
faires charging that Cuba had
helped two members of the out
lawed Aprisla party to flee Peru
for Cuba, and consequently the
Peruvian government "cannot
continue relations with the
Cuban government."
Peru is ruled by a military
junta which seized power"' in
1948.
Mrs. Truman Home Again
Independence, Mo., Aug. 20
(IP) Mrs. Harry S. Truman and
Miss Margaret Truman, wife
and daughter of the president,
returned to their Independence
home from Washington last
night
Escaped Ohio Convict Gives
Himself Up to He mm an
8.
Says Vaughan
Interfered to
Washington, Aug. 20 ()
Senatorial sources said today
that Maj. Gen. Harry H.
Vaughan once gave an agricul
ture department official "par
ticular hell" about a grain ra
tioning order after alcoholic bev
erage makers reportedly com
plained about the edict.
Senate five percenter investi
gators already have been told
that Vaughan, who is President
Truman's army aide, intervened
at the department in another
case in 1946.
The testimony was that
Vaughan at that time tried un
successfully to aid a New Jer
sey molasses company accused of
violating sugar rationing.
Grain Episode
In the grain rationing episode,
Vaughan in 1946 or 1947 report
edlyasked Clinton P. Anderson,
then secretary of agriculture,
whether any change was con
templated in the federal order
which restricted the amount of
grain which could be used for
making alcoholic beverages.
Anderson, now a U. S. senator
from New Mexico, is understood
to have said no change was indi
cated at that time.
Subsequently, however, the
rationing order was made more
stringent. An official familiar
with the incident gave this ac
count of what followed:
"I understand that Vaughan
got a call from Milwaukee, from
someone representing the brew
ery interests there. The call is
supposed to have come from Har
ry Hoffman.
(Concluded on Pare 5, Column S)
Fight Fire in
Hell's Canyon
McCall, Idaho,
K,r'
Three hundred fire fighters were
rushed today to battle a raging
forest fire in 7,400 foot deep
Hell s Canyon on the Snake riv
cr.
Walt Hankins, fire dispatcher
for the Payette National forest,
said about 500 men are manning
28 blazes throughout the forest.
The fires were set by a severe
lightning storm two days ago.
The fire has burned more than
70 acres of scattered yellow pine
and brush. The blaze is in the
upper end of the canyon just
above Eagle Bar about half
way down the canyon.
Plans to drop smoke jumpers
into the area have been aban
doned as too risky. Fire fight
ers are being trucked into the
area from two sides. They will
have to hike about four miles to
reach the big blaze.
Hell's canyon, a steep, prec
ipitous gorge carved out of the
mountains by the meandering
Snake river, is deeper than Ari
zona s famed Grand Canyon.
Largest fire in the Payette
national forest has ravaged
about 200 acres north of Rig-
gins Hot springs. Eighty-five
men were trying to hack a fire
line around the flames today.
Meanwhile on a third Idaho
forest, the Nez Perce, 28 smoke
jumpers and 220 others battled
38 fires. The largest of these
has blackened about 40 acres
east of the Salmon river, Paul
Prety, forest administrative as
sistant said.
Interviews Fugitive Chris Kowifz, Jr., (left), Capital Jour
nal reporter, takes a few notes while talking with Rae Moore,
44, who is wanted by Ohio authorities for parole violation.
Moore walked into the Capital Journal office Friday afternoon
and told Kowiti his story. Kowitz then took him to the police
tation.
Feed Stations
To Keep Bears
Out of Duluth
Duluth, Minn., Aug. 20 (IP)
Residents here were hopeful to
day the first of a series of "bear
cafeterias" would keep the ma
rauding animals safely outside
the city limits.
Poor berry crops and short
age of other natural food have
driven the bruins into civilized
areas in quest of provender
More than 100 have been shot
after frightening dwellers in
several northern Minnesota com
munities. Most of them were
felled in the Duluth area
Oil company employes at an
outskirts plant set up the first
feeding station yesterday and
others were promised. The Du
luth sanitary service agreed to
keep these stations supplied with
garbage, described as "sort of a
delicacy" to the starving ani
mals.
Help Nearing
2 Crippled Ships
Halifax, N.S., Aug. 20 (IP)
Help today neared two ships
crippled by a storm that pound
ed up the Nova Scotia coast yes
terday and across the province
into the Gulf of St. Lawrence.
The Canadian destroyer Iro
quois was standing by the 4,200-
ton Panamanian freighter Ev
genia, which lost her steering
and emergency gear 80 miles
southeast of Halifax.
The rescue tug Foundation
Josephine out of Sydney, N.S.,
plowed through heavy seas and
rain to the Evgenia's positon
The freighter, bound from New
York for Halifax with about 50
men aboard, will be towed into
this port.
The U.S. coastguard cutter
Unimak out of New York near
ed the-little ship Amanda, dis
abled 480 miles southeast of
Halifax, with 31 Baltic refugees
aboard.
A 1,800-ton floating drydock
sprang a leak while being towed
rnm Avnantu mi? in Ma..,
York and was beached vester
day on Scatari island off the
east coast of Cape Breton island
A U.S. navy tug is standing by.
Nova Scotians looked around
at felled trees, broken power
lines and into flooded cellars
and began to tote up the dam
age.
Liverpool, 70 miles southeast
of Halifax, got 4.15 inches of
rain in 24 hours. Goods were
damaged in the basements of
stores in several towns when
drains clogged and the water
backed up.
Dewey Declines to
Call Militia in Strike
Buffalo, N. Y., Aug. 20 IIP)
Gov. Thomas E. Dewey declined
today to use state police or mili
tia to handle what the Bell Air
craft Corp., and a sheriff have
termed "lawlessness" at Bell's
strike-bound plant.
Company President Lawrence
D. Bell and Henry E. Becker
Niagara county sheriff, teamed
yesterday in asking Dewey to
send a slate guard or slate police
to handle the situation.
In a telegram from Albany
Dewey told Becker that the of
ficer had "complete and un
limited power to deputize any
number" of men.
Dewey added that "I sha
hold you strictly accountable
for any failure" In "discharge
your responsibilities."
I'JHOURS
Rae Moore, 44f
Violated Parole
3 Years to Serve
By CHRIS KOWITZ, JR.
Rae Moore, 44, who is want
ed by authorities In Ohio for
parole violation, walked into
the Capital Journal office Fri
day afternoon to give himself
up.
A reporter took him to the
police station, where a check of
records revealed that Moore,
who was on parole from the
state prison work farm, had
been missing since May 21.
When Moore left the state of
Ohio, his parole automatically
was cancelled.
He had served four years of
a seven-year sentence for grand
larceny for the theft of some
automobile accessories.
City police booked Moore on
a vagrancy charge, pending fur
ther information from Ohio. He
now being held in the city
jail.
Story of Surrender
Friday afternoon as I was
straightening up my desk after
a busy, but routine day, a man
carrying an old, battered suit
case walked Into the office and
wanted to talk with "a young
reporter." He seemed upset and
nervous.
This man and I went to a eor-
ner of the newsroom.
"I am Rae Moore," he said.
I am wanted by authorities in
Ohio for parole violation. I am
turning myself in to you."
Served 4 Years
He then told me that after ha
had served four years of a seven-year
sentence for grand lar
ceny, he was issued a parole. H
loin a pathetic story of why he
left the state of Ohio on May 21
of this year.
When he crossed the slate
line, his parole was automatic
ally cancelled and he became a
fugilive from justice.
"I have Ihree years left to do
in prison. I'm an old man now.
I have a bad heart. I want to
DacK and serve the rest of
mv sentence. Please deliver me
to the nearest nnlinp station "
So we walked together to the
city police headquarters, just
around the corner from the Ca
pital Journal building. A city
detective checked the wanted
lists and found Moore's nam
and description there.
Though the "capture" lacked
any glamor or excitement, it
was authentic, and this report
er's big wish has been fulfilled.
I finally got my man.
Seek to Salvage
Arms Program"
Washington, Aug. 20 VP)
Captained by Senator Connally
(D-iex), the administration be
gan an uphill fight in the sen
ate today to salvage its $1,450.-
000,000 foreign arms program.
connally, adopting a no-com
promise attitude, came out for
restoration of the full amount of
$1,160,990,000 for military sup
plies for north Atlantic treaty
signers. The house cut that to
tal exactly in half.
But Connally seemed unlikelv
to be able to muster a majority '
of the senate foreign relations
and armed services committees.
over which he is presiding, for
reinstatement of the full fund.
Senators V a n d enberg (R
Mich) and Dulles (R-NY) stood
firmly on their demand for a
reduction to a round $1,000,000,
000. And even Chairman Tyd
ings (D-Md) of the armed serv
ices group talked in terms of
the same amount.
Critics of the program ap
plauded the house action.
Senator Byrd (D-Va) called
the slash "a step in the right di
rection."
Senator Russell (D-Ga) ap
proved the cut, adding that in
his opinion it would be enough
for this country to ship $450,
000,000 worth of surplus mili
tary equipment to the Europeans
this year, without spending any
Mtiiuonai cash.
On the other side. Senator
Gurncy (R-SD) said he wanU
nn adequate amount made avail
able. But he said he wasn't wed
ded to any particular figure.
Douglas Dedicates Park
Yakima. Aug. 20 (IP) U.S.
Supreme Court Justice William
O. Douglas is making a week
end climb of an 8201-foot peak
to dedicate It to a boyhood
friend the late Curtis Gilbart.
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