THE WEATHER HERE
INCREASING CLOU DINESS,
mostly cloudy tonight, Wednes
day. Clearing in afternoon.
Slightly cooler. Lowest tonight,
53; highest Wednesday, 80.
Maximum yesterday, S7: minimum to
day, 61. Total 24-hour precipitation: trace;
far month: .M; normal, .43. Season pre
cipitation. 42.55; normal, S7.1A. River
bright. -3.S feet. (Report by U.S. Weather
Bureau.)
Ca
HO M
EDITIO
61st Year, No. 206 .".",1, Salem, Oregon, Tuesday, August 30, 1949
(20 Pages)
Price 5c
oital k
La -t-fg
Pick West Side
For Portland's
Stale Building
Board of Control Lo
cates New $2,500,000
Office Building
The new $2,500,000 state office
building in Portland will be lo
cated on the west side of the Wil
lamette river on a block bound
ed by Southwest Clay, Columbia,
Fourth and Fifth streets.
Governor Douglas McKay and
Secretary of State Earl T. New
bry voted in favor of the west
side site while Slate Treasurer
Walter Pearson voted alone for
an east side location.
The decision made Tuesday
brings to an end a three year dis
pute over the location of the
Portland office building, the
project having been considered
by three separate boards of con
trol. Site Cost $325,000
The block selected is owned by
the Jensen Investment company
and was purchased for $325,000.
Newbry stated that he believed
it would be a mistake to locate
the building on the east side of
the river
"This building, although lo
cated in the city of Portland, is
for the people of the state," he
said. "The great majority of out
of town people who go to Port
land have business to transact on
the west side of the river and
the state building should be
there too."
McKay States Tteason
Governor McKay said that he
was convinced the business area
of Portland would remain on
the west side for a long time.
Further, he said, the two state
departments doing the greatest
volume of business, the unem
ployment compensation commis
sion and the accident commis
sion, would be located in close
proximity to the labor temple if
the west side site was chosen.
(Concluded on Page 5, Column 8)
Refuse Probe
Brownlee Case
Th. board of control turned
down today a request by State
Treasurer Walter Pearson that
the board ask for a legislative
Investigation of the suicide of
Oran Brownlee, 24, Eugene,
penitentiary convict who killed
himself last March.
Pearson, one of the three
members of the board, said the
people would have more confi
dence in an. investigation con
ducted by the senate committtee
on state institutions.
But the other two members,
Governor Douglas McKay and
Secretary of State Earl T. New
bry, said it is the board's respon
sibility to investigate. They add
ed that if the senate committee
wants to look into the matter,
that would be OK but the board
isn't going to ask the committee
to do it.
Governor McKay said Attor
ney General George Neuner will
have a preliminary investigation
completed by the end of this
week.
Neuner, at the request of the
board, is looking into charges
that Brownlee did not receive
proper medical attention after
his successful suicide attempt.
Steel Mediation
Plan Cancelled
New York, Aug. 30 (IF) Pres
Ident Truman's steel fact find
lng board today withdrew its
offer to mediate the steel dis
pute after the Industry had in
dicated that such talks must be
conducted on an individual com
pany basis.
Chairman Carroll R. Daugh-
erty of the board said the three
members had decided that the
position taken by the companies
made the task of mediation
"physically impossible."
He added that the board had
notified the CIO United Steel
workers of its decision to with
draw the mediation offer and
that the union had not indicated
what position it would have
taken.
The board now will proceed
to write its report containing
recommendations for a settle
ment in the dispute. This re
port must go to the White House
not later than September 10.
Czechs Assert
Anti-Red Plot
Nipped in Bud
Six Revolutionists
Condemned to Death,
10 Get Life Sentences
Prague, Aug. SO (IP) The
Czechoslovak .government .an
nounced today it had crushed an
a n t i - communist underground
movement just as the group was
preparing to begin an armed
revolution.
The official press bureau link
ed the underground members
with "a certain western imper
ialistic power" but did not iden
tify the western power.
Details of the purported plot
were announced after a secret
trial at which six persons were
condemned to death, 10 given
life imprisonment and an un
specified number lesser prison
terms. Ten of those tried were
acquitted.
Tried for High Treason
The announcement termed
members of the group spies and
terrorists and said they were
tried on charges of high treason
and spying on behalf of the west
ern power "with which they had
been in contact."
The government claimed its
police had played a cat-and-mouse
game with the alleged
conspirators and waited until
they were all set to begin the
revolution before moving in to
nab them.
One of those sentenced to
death was Josef Charvat, iden
tified by friends as chief of se
curity police here during the
first republic.
The government said the po
litical leader of the planned
putsch was Dr. Jaroslav Bor
kovec, identified as the brother
of a former chief of the Prague
police's criminal investigation
section. His brother was ousted
when the communists took over
the government in February,
1948.
Army and Police Wanted
Informed sources said those
sentenced included army and po
lice personnel, as well as civil
ians The trial of the group was re
ported to have lasted several
weeks in the Prague state court.
The .government said many of
the accused pleaded guilty. ,
Date of the attempted coup
was not disclosed, but it was re
ported the group chose a bank
holiday "when the working peo
ple were at home and unable to
mount counter-action."
A spokesman at the American
embassy said "we don't know
anything about this. It is just as
much news to us as to everybody
else."
Youth's Knife Failed
To Scare Police
Portland, Aug. 30 (IP) A boy's
pocket knife failed to cow po
lice and a 17-year-old Woodburn
training school escapee was held
in the city jail today.
The juvenile sought to cash a
worthless check at a department
store and police were called.
When they arrived, he whipped
out the knife and brandished it
with the words, "stay where
you are."
Police didn't and he went to
jail. Juvenile court will be ask
ed to release him to face charges
of attempting to obtain money
by false pretenses and carrying
a concealed weapon.
Young Queen Will Rule
Over Fiesta of Hops
Independence, Aug. 30 One of the youngest queens ever to
rule over the annual hop fiesta will be selected Wednesday after
noon at 4 o'clock and will be between 8 and 10 years old.
Coronation ceremonies will be held during a home talent show
at 8 o'clock with Mayor Ralph Spencer crowning the new ruler.
Another coronation will be held
Friday night whe.i Senator Dean
Walker crowns the king or queen
of Toyland at a home talent show
at the gymnasium. All events
are in the school gymnasium.
Ten acts of vaudeville will be
presented both nights under the
direction of Virginia May Mat
thay, of Hollywood.
An outdoor show will be giv
en by the "Salem Saddle club at
6 o'clock Thursday evening fol
lowed by the grand parade at 7
o'clock. A street dance will con
clude the day's events.
The children's parade will be
held Friday evening at 7 o'clock
followed by the second home tal
ent show. The official hop fi
esta dance will be held at the
gymnasium Saturday night start
ing at 9:30 o'clock.
. All hop fiesta special shirts, 60
m l
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JS&R wfthrf r 1 i i tpf f ! f if f 1 nra
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Substantial Improvements at Penitentiary Top, newly
completed ccllblock, 60 by 254 feet, with individual cells for
400 prisoners. Each cell is provided with a cot, beading, wash
basin, toilet, writing table and shelf for the inmate. This
cell block costing $550,000 is air conditioned. Lower: Section
of the new, 25-foot wall now 80 percent completed. A
new warehouse is under construction at the right and a
root storage will be built nearby. Completion of the new wall
will be accomplished before January.
Prisoners to Occupy
Ne w Cells
Modernization of Oregon's
completion of a new $550,000
in individual cells.
Some prisoners have already
pleted section and all of the new
Safeway Fire
Loss $4 Million
San Francisco, Aug. 31 W
A fire causing an estimated $4,
000,000 loss, raged for six hours
today through a grocery ware
house of Safeway Stores, Inc.
Division Manager G. H. Bran-
lund said the block square ware
house was worth $1,500,000. He
estimated the value of groceries
destroyed at around $3,000,000.
More thean 35 firemen were
hurt, but only four required hos
pitalization.
A general alarm, rarely sound
ed, summoned all off-duty fire
men to man outlying stations
as equipment moved up to the
firelines from all quarters.
About 600 men, off duty, re
sponded to the call.
Five thousand or more spec
tators crowded into the area.
The warehouse was at army
and Evans streets. It held every
type of merchandise sold by
Safeway stores.
dozen of them, were sold short
ly after their arrival and add col
or to the celebration. Banners
have been placed in the business
district.
The fiesta is being staged un
der the direction of Independ
ence business men including C.
R. Lamb, president of Hop Bowl,
Inc.; Roy Morris, secretary and
the following chairmen: Robert
Craven and Miss Matthay, shows
Robert Morgan and Hal Mellin-
ger, kiddies' beauty contest; Ben
Muhlcman, horse show; Harry
Day, grand parade; Maurice Dod
son, children's parade; John
Pfaff, street dance; Dick Tay
lor, hop fiesta dance; Marshall
Powell, finances: William Dar
ling and Harry Day, street dec
orations; Dr. M. J. Butler, re
ception and H. R. Engblom.
"Hoose-gow."
0 a
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ft
eur tin" r.n. i
J V ftf & Hr 2 Ti J "
lis t
i
Thursday
penitentiary is taking form with
cellblock to house 400 prisoners
been moved into the newly-com
cells will be occupied Thursday,
Warden George Alexander an
nounced.
There are four tiers of cells
on each side of the cell block.
Each cell is equipped with a cot,
with mattress, three blankets,
sheets and pillow cases. Also in
the cell is a wash basin, toilet
writing table and shelf on which
the prisoner can keep his per
sonal effects.
More Bids to Be Opened
The cell block, 60 feet wide
and 254 feet long is air-condi
tioned. There are no lights in
any cells, illumination being
formed by reflected light
through glass into the cells from
globes in the corridors.
(Concluded on Page 5, Column 8)
Hawaii Resists
Dock Picketing
Honolulu, Aug. 30 (IP) The
territory of Hawaii today
planned to resist picketing of its
longshoremen. Both government!
stevedoring and picketing
against it were upheld by a fed
eral court.
U. S. District Judges J. Frank
McLaughlin and Delbert E.
Metzger announced the double-
bitted decision yesterday. They
said the territorial government
could continue in the stevedor
ing business which it began aft
er seizing the islands' strike-
plugged docks under an emer
gency law passed by the Hawai
ian legislature August 6.
The judges also ruled the In
ternational Longshoremen's and
Warehousemen's union could
keep on picketing the govern
ment-operated docks. The un
ion's 2,000 stevedores struck 122
days ago to raise their $1.40
hourly pay by 32 cents.
The ILWU had challenged the
law in federal court. It had
asked an order temporarily re
straining the government from
operating the docks. The two
judges said their ruling uphold
ing territorial dock operations
and the union's right to continue
picketing would be effective un
til they completed a hearing on
the union's application for a per
manent injunction.
It was the court s action on
picketing that brought an im
mediate promise of resistance
from J. Garner Anthony, the ter
ritory's special deputy attorney
general.
Wv-Vc4
$8.3 Billions in
State Taxes Paid
Washington, Aug. 30 VP) The
census bureau reported today
that state tax collections in the
last year amounted to $8,300,-
000,000, a rise of 7.1 per cent
over the previous 12 months.
Louisiana led the list in tax
increases for the period ending
last June 30. Louisiana s state
levies jumped 51 per cent. Thir
ty-nine other states showed in
creased collections.
Louisiana state levis now are
the highest per capita in the na
tion, the census report showed.
They amount to $92 for every
man, woman and child.
Nebraska had the lowest per
capita tax revenue, $36. The av
erage for all states is $57, but
the trend of state collections still
is rising.
Excluding payroll collections
for unemployment compensa
tion, which are not strictly rev
enues because they are held in
trust for payment of benefits
later, state taxes yielded a rec
ord $7,400,000,000 in fiscal 1949,
or 9.5 per cent more than in
1948.
Other states showing a sharp
increase in tax collections last
year (including unemployment
compensation levies) included
Oregon, 12.6.
State tax collections per capi
tal showed these among the
highest: California $83.41; Colo
rado $75.55; Michigan $73.06;
Utah $69.24; Washington $90.07
Oregon $68.45.
Australian Wool Prices lipped
Adelaide, Aug. 30 VP) Wool
prices were five to ten percent
up on June rates at opening of
new season wool sales today.
Competition 'was again keen
with Bradford and Continent
representat i v e s as principal
buyers.
'0 q if 0 W
i " - ' D If
President Harry S. Truman, wearing a Missouri Legion cap, is greeted as he arrived in
Philadelphia to address the 31st National American Legion convention. In the group (left to
right), are Gov. Jam H. Duff, Philadelphia; President Truman, Perry Brown. National Le
gion commander; U. 8. Senator Francis J. Myen (D., Pa.), and Philadelphia Mayor Bernard
Samuel. (AP Wlrephoto)
VaughanSays Contributions
Were for
Bolivian Rebel
Planes Attack
Army Airport
La Paz, Bolivia, Aug. 30 (IP)
Two rebel planes today dropped
mortar shells on the La Paz army
airport and a nearby military
college.
The revolutionists used mor
tar shells because they have no
bombs, a government spokesman
said. The shells did no damage,
he added.
The planes, DC-3 transports,
flew over La Paz itself, but were
driven off by anti-aircraft fire.
Meanwhile the government be
gan a draft of all citizens in a
fight of survival against the
spreading rightist revolution.
Reservists, 20 to 24, were
called to the colors in La Paz
and orders for mobilization have
been issued to all men 19 to 50.
To Fight Revolt
They will be called upon to
fight the revolt against the middle-of-the-road
government that
broke out in scattered sections
Saturday and now controls all
Bolivia's large cities except La
Paz.
Greatest government efforts so
far have been directed against
Cochabama, a city of 90,000
southeast of La Paz, where the
rebels are strongly entrenched.
Airforce planes bombed the
town yesterday for the third
time, but reports said they did
little damage. The raids terror
ized the Inhabitants, however,
and indignation against the act
seems to have added new recruits
to the rebellion.
Insurgents Seize Planes
The planes, after dropping
their bombs on Cochabamba
flew on to the garrison town of
Camiri to pick up troops for an
attack on Sucre.
(Concluded on Faro I, Column t)
Tito Likely to
Get U.S. Loan
Washington, Aug. 30 VP)
Marshal Tito of Yugoslavia
considered virtually a cinch to
get an American government
loan provided he stays alive
and independent from Moscow
Top government officials said
Secretary of State Acheson's
strong support for Yugoslavia's
application clearly foreshadows
a favorable verdict.
Acheson and Ambassador Ca
vendish Cannon in Helgrade are
reported vigorously urging the
export-import bank not only to
approve Tito's bid but to do it
quickly.
The Yugoslav dictator is said
to be in need of quick economic
help from the United States and
other western countries to help
him weather the economic
blockade now threatening to
strangle his country.
The Yu g o s 1 a v government
was disclosed last night to have
applied formally to the bank for
a credit of around $25,000,000
needed to buy American ma
chinery for its copper, lead and
zinc mines.
Tito is reported to have turn
ed to the bank, an American
government agency, because he
feels he cannot wait possibly six
months for a credit for the in
ternational bank.
'48 Campaigi
. . . . fc
Maj. Gen. Harry H. Vaughan
Economy Fight
Lost in Senate
Washington, Aug. SO (IP) A
senate economy drive which had
built up steam for months ap
peared bogged down at last to
day following final senate action
long overdue on billions of
dollars in appropriations.
In the final voting yesterday
on a $14,8UO,UU0,OUO defense
money bill, economy advocates
actually showed a good-sized
majority. Pushing an amend
ment which would have requir
ed President Truman to cut
government expenses five to 10
percent, they summoned a total
of 49 votes against only 28 for
the opposition.
But that was not enough. It
fell three votes short of the two-
thirds margin which Vice Presl
dent Barkley, the senate's presi
ding officer, had ruled neces
sary.
That appeared to put the
whole economy question over
until the 1950 congressional
campaigns
The proposed rider would
have required Mr. Truman to
chop from two to four and a
half billion dollars from the es
timated $45,000,000,000 he ask
ed congress to authorize for
government spending this fiscal
year, which started July 1.
Its defeat marked a hard won
victory for Democratic Leader
Lucas who must run for re-elec-
It was a major setback for
two southern democrats, Sena
tors McClellan of Arkansas and
Byrd of Virginia, and two top
republican leaders, Senators
Wherry of Nebraska and Taft
of Ohio.
Statehood Bills
'Must' Measures
Washington, Aug. 30 (IP) Rep.
Sabath (D., 111.) said today that
Alaska and Hawaii statehood
bills are among a number of
"must" measures on which Pres
ident Truman asks early action
after the house ends its recess
Others which Sabath said the
president put in the same cate
gory included: Creation of a per
manent fair employment practic
es commission under the "civil
rights" program: $150,000,000
recovery program in southern
Korea; a $100,000,000 public
works planning program; ex
prnded social security benefits;
increased benefits for postal
workers.
j
Maragon, Kelis
Each Paid $2000
To Truman Aide
Washington, Aug. 30 (IF)
Maj. Gen. Harry H. Vaughan
acknowledged today that he col
lected campaign money In 1946
from some of the business men
he helped in dealings with the
government.
He said he got $2000 or $3000
from Race Track Owner William
Helis, who sought Vaughan's
aid in 1948 in getting a permit
for scarce building materials for
the Tanforan (Calif.) race track.
And, Vaughan said, he "pro
bably" got $2000 from John Ma
ragon, Washington man-about-town
and one time employe of a
Chicago perfume company.
Vaughan, the president's mili
tary aide, was in the witness
chair of the senate investigations
subcommittee.
Denies Receiving Fees
Flatly and repeatedly, he de
nied that there was anything im
proper in anything he did for
any business man or that he
ever received any fee, gift or fa
vor in return for his aid.
Senator McCarthy (R-Wis)
said at one point he felt that
"Vaughan did not personally
profit financially from his as
sistance to persons who have fi
gured in the inquiry.
(Concluded on Face 5, Column T)
Compromise
On Arms Aid
Washington, Aug. SO (IF) Sen
ator Connally (D-Texas) pro
posed a compromise today in a
bid for "overwhelming approv
al" of President Truman's $1,
450,000,000 arms aid program.
The administration's foreign
policy lender in the senate of
fered the plan to the combined
foreign relations and armed
services committees which are
considering the arms bill.
He withheld details of the pro
posal, however, until a group of
republican and democratic sen
ators from both committees have
had chance to study it.
Connally is head of the for
eign relations group.
He told reporters that one of
the things the compromise deals
wilh is the amount to be pro
vided for military aid to Euro
pean nations in the Atlantic pact.
President Truman asked $1,-
160,090,000 for that purpose.
Senator Vandenbcrg of Michi
gan, top-ranking republican on
the foreign relations committee,
wants to hold it to an even $1,
000.000,000. Connally named himself and
three other members of the com
bined committees to study the
plan and report lo the full group.
The other three are Vanclonberg,
Chairman Tydings (D-Mel) of
the armed services committee;
and Senator Gurncy (R-SD).
Press ol Britain
Thanks Truman
London, Aug. 30 (IF) The Brit
ish press gave out today with a
heartfelt chorus of "thank you,"
Mr. President."
The Philadelphia spepch by
President Truman aroused a s
much gratitude as though it had
been a personal pat on the back
for every Briton.
Mr. Truman's avowal of con
tinued sympathy and friendship
for the British people was the
day's top news story.
It was hailed on all sines as a
good omen for the dollar crisis
talks starting in Washinston on
September 7. In labor party cir
cles there were audible sighs of
relief.
'Truman says hands off oth
er people's politics" was the ju
bilant headline in the daily Her
ald, the party mouthpiece.
Mr. Truman told legion dele
gates the U. S. will help great
Britain solve her present finan
cial crisis.
The president said flatly that
sound and expanding econ
omy is essential to world peace."
He insisled the U. S. will exam
ine Britain's currency dilemma
In a "spirit of friendship and
helpfulness."
The democratic nations are
not proposing to interfere with
one another's internal politics,"
Mr. Truman said.