C apital
THE WEATHER HERE
FAIR TONIGHT and Thursday,
tome lor in morning, cooler to
night. Lowest temperature to
night, 36; highest Thursday, 65.
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naa.) HOME
EDITION
61st Year, No. 243
Inttrtt) u fra4 Iuf
Salem, Oregon, Wednesday, October Ik, 1949
(24 Pages)
Price 5c
stur H MkSL
Senate Favors
Sliding Scale of
Price Supports
Farm Bill Sent Back
To House in Party
Line Split on Subsidies
Washington, Oct. U m A
sliding-scale system of govern
ment price supports under major
farm products won senate ap
proval today.
After weeks of angry argu
ments that split party lines, the
senators sent the so-called "price
stabilization" act back to the
house which ha? adopted a dif
ferent plan. Passage was by
voice vote.
Another bitter struggle be
tween the senate and house over
what's best for the farmer
especially during the 1950 con
gressional election year now
looms. And an apparent dis
agreement between President
Truman and two of his chief
senate lieutenants threatens to
cloud the issue for the demo
crats in next year's campaign
Truman for War Prices
Both the president and Vice
President Barkley are said to fa
vor continuance of the wartime
level of farm price props now
existing.
Senator Anderson (D., N.M.),
former secretary of agriculture,
is author of the senate's bill and
democratic leader Lucas (111.)
backed it.
Back in July, the house voted
to retain 90 per cent of parity
price supports under cotton,
wheat, corn. rice, tobacco and
peanuts during 1950. The house
also retained present supports
under a long list of other com
modities.
(Concluded on Pare 5, Column 7)
School Frats
ob-up Again
Illegal secret societies, the
bane of the Salem public school
administration, have bobbed up
once more to plague the auth
orities.
No public announcement con
cerning the latest outbreak has
been forthcoming either from
the school board or Principal
E. A. Carleton. The latter, how-
ever, said that the administra
tion was in the process of inves-
tigating the situation. A number
of those suspected of being in
volved in the latest society
move have been questioned
The probe has not proceed
ed far enough to determine
whether any athletes are involv
ed, Principal Carleton said.
The new organization, report
ed to involve a score or more
of boys at senior high, has been
named "A.B.C." The boys claim
it does not come under the state
statute which bans secret soct-
eties and has no connection with
the Julius Caesars or Friars, two
clubs that have caused the most
difficulty.
The statute governing secret
societies sets forth that "it is
the duty of each school board
wihin the state, to examine.
from time to time, into the con
dition of all schools under its
charge and to suppress all se
cret societies therein, and for
this purpose such boards are
hereby authorized to suspend or
expel from school, at their dis
cretion, all pupils who engage in
the organization or maintenance
of such societies."
$57,761 Given
To Chest Fund
Community Chest workers
Wednesday morning added
$683.81 to the fund for the 1949
50 Community Chest here, bring
ing the audited total for contri
butions to the $57,781,89 mark.
The divisions and the amounts
of the contributions for each di
vision as they stood Wednesday
noon were:
Automotive and transporta
tion. $7,813.50; contractors and
builders, $3,890.10; educational.
$1.27533; general gifts,
$3,275.75; governmental, $7,
516.78; industrial. $7,622.87;
mercantile. S9.899.75; profession
al $3,934; rural. $345; utilities.
$888; West Salem, $604 50; north
Salem section, women's division,
$1,040.10; central Salem section,
women's division. $3,358 32; and
south Salem sect on, women's di
vision, $2,067.89.
Eden Outlines
Platform of
Conservatives
London, Oct. 12 UB Deputy
conservative party leader An
thony Eden outlined to the open
ing session of the party's 70th
annual conference today a 12
point program promising lower
taxes and no more nationaliza
tion. Eden, heir to the party man
tle worn by Winston Churchill
and first important speaker at
the meeting, had to quell an in
cipient floor revolt by rebel
delegates who demanded to know
specifically what the Tories
would do if they won the elec
tion. He also attempted to weld the
split between party leaders and
Publisher Lord Beaverbrook
over Beaverbrook's recently
announced empire first, last and
always plan.
Canton Defenses
Fast Crumbling
Hong Kong, Oct. 12 WR Na
tionalist defenses in South China
crumbled today before fast mov
ing communist armies.
Red elements were reported
within 35 miles of the tottering
provisional capital at Canton.
The government fled to Chung
king, far in the interior. Thou
sands of evacuees jammed Hong
Kong.
Pro nationalist reports here
said communist troops had en
tered outlying suburbs north
east of Canton. Hard driving red
columns under General Cheng
Keng struck toward the city on
all northern fronts.
Independent military obser
vers expressed belief the main
body of communists still is prob
ably some 50 miles to the north
and northeast of Canton.
There has been no sign of re
sistance from the five nationalist
armies supposedly lined up to
defend Canton. An estimated
80,000 government troops were
falling back on the city. Com
munist dispatches speculated
that they would be evacuated by
sea to Formosa and Hainan Is
lands. Pudding River
Bridge Unsafe
The county court received a
communication from A. L. Beck,
superintendent of the Canby
schools, Wednesday, advising of
the unsafe condition of the inter-county
bridge over the Pud
ding river In the north end of
the county.
He said the bus driver for his
district had advised that some
of the supporting beams are
broken, planks also broken and
the west approach considered
unsafe.
Under an agreement between
the Marion and Clackamas coun
ty courts this bridge is one that
comes under the maintenance of
the Clackamas county court,
each county paying half the ex
pense. The communication will
be referred to that court
However, a year or so ago
similar complaints came Into the
court here as to an unsafe con
dition at the bridge and efforts
to get the Clackamas county
court to fix it were so long de
layed the Marion county court
sent a crew there and made
maintenance repairs regardless
of the agreement.
Option Given for Sale
Of Washington School
While the Grabenhorst Brothers firm of realtors was given a
six months' option on the old Washington school property lo
cated at 12th and Center streets by the Salem school board Tues
day night, George Grabenhorst declines to discuss what he has in
view.
Grabenhorst explained that
the location is in a residential
zone which would have to be
changed before any business en
terprise could locate there. How
ever, he said that if a deal, now
in a tentative stage, can be put
through, it would mean an in
vestment of a large amount of
money over and above the price
paid for the land. It would re
sult in the employment of a con
siderable number of persons.
In giving the option at a fig
ure in e x c e s of $100,000 the
school board abandoned, at
least temporarily, any plan for
converting the old frame Wash
ington building into administra
tion headquarters.
Such a move, it was pointed
out, would involve fire restric
tions governing the conversion
of a frame structure.
The board agreed that unless
the Washington property could I withholding of the final pay
be sold at a reasonable figure, jmcnt.
it would b retained. However, (Concluded Fag t t'oiiuna 7)
Murray Claims
Steel Strike to
Be Ended Soon
Predicts Union Vic
tory Lewis Confers
With Coal Operators
Br tti Auociaiad Pr
Philip Murray, CIO president.
predicts the steel strike will end
soon with a union victory in the
tight for free pensions and insur
ance. 'I assure you that before very
long we will all be happy,"
Murray said in a fighting address
at Youngstown, O, It was his
first talk of a pep tour to take
him to several of the nation s
steel centers.
There was no reply from in
dustry to Murray's optimism or
to his charges industry had
forced 454,000 of his men to
strike.
The U.S. conciliation service
went ahead setting up separate
meetings with union and top in
dustry leaders in an effort to
break the strike. The first session
is scheduled with Bethlehem
Steel corporation tomorrow at
New York.
Other Developments
In other labor developments
today:
John L. Lewis and soft coal
operators went back to contract
talks at White Sulphur Springs,
Va., as the coal strike continued
in its fourth week. Conciliators
said a crisis is near.
(Concluded en Pane 5, Column S)
Reds Take Over
Czech Business
Prague, Czechoslovakia, Oct.
12 W) New nationalized busi
nesses sprang up in Prague to
day in shops whose owners had
been seized in widespread police
roundups. The purge arrests
were reported continuing.
Several people who went to
trade with their former neigh
borhood druggists, bakers or
book shops reported they found
communist-control led national
administrations had been install
ed.
The businesses had been seiz
ed by the government. In some
cases it was reported the fami
lies of the former owners also
had been thrown out of their
apartments.
This lent substantiation to
persistent reports that police ac
tion against small businessmen
which engulfed most of Prague
the last 10 days had been aimed
at liquidating remnants of. the
middle class. Big enterprises
had long since been national
ized.
Reliable reports said many of
the people seized had been sent
to forced labor camps by com
munist-controlled national com
mittees.
Police Take Counterfeit $10
Portland, Oct. 12 W) Port
land police had a good look at
a $10 counterfeit bill today
they took one in yesterday in
payment of a fine, A transient
was arrested last night trying to
pass one at a liquor store. He
said he got it in a poker game
in Seattle last month, A num
ber of the phoney bills have
turned up here and in Seattle.
it is recognized that it has lost
its usefulness for class room pur-1
poses although it is now being
used until the new building in
the Capitoia district can be com
pleted. Delay in completing the Capi
toia school drew from board
members criticism of the con
tractor. No time for its occupan
cy has been fixed although it
probably will be delayed at least
for two weeks. The Four Corners
building is progressing at a sat-
Wctory rate.
Although the central heating
plant which takes care of the
high school and Parrish high
school was completed a year
ago, final payment to the con-
tractor was not authorized until
Tuesday night. Failure ot the
steam line between the plant
and Parrish brought about the
To Visit President Indian Premier Pandit Jawaharlal
Nehru (center) leaves plane at London airport, where he
stopped off for week-end before resuming flight to Washing
ton, D. C, for visit with President Truman. At left is V. K.
Krishna Menon, Indian high commissioner in London and at
right is Patrick C. Gordon Walker, under-secretary of state,
commonwealth relations office. The premier left Londan air
port aboard the Independence, President Truman's plane,
for Washington. AP Wirephoto)
Nehru Starts Tour to
Find Out About America
Washington, Oct. 12 () Prime Minister Jawaharlal Nehru of
India set out today on a strenuous get-acquainted tour ot the
United States. American officials hope it will help make India
inclined more strongly toward the west in the cold war with
Russia. ;
Nehru is a hero of his coun
try's fight for freedom and prob
ably the outstanding figure m
Asia. He was greeted personal
ly by President Truman on his
arrival late yesterday tor s state
visit of nearly a month. Lat
night he was Mr. Truman s guest
at a formal dinner at Blair house.
The White House reported to
day that the president and
Nehru did not discuss business
at the dinner. Their conversa
tion was described by Press Sec
retary Charles Ross as purely
social."
Nehru and the president will
meet again Friday at a recep
tion at the Indian embassy.
A visit to Mount Vernon and
the Tomb of the Unknown Sol
dier were on the prime minis
ter's schedule today. This will
be followed by two more days
of sightseeing, speeches and
handshakes in the capital before
he leaves Saturday for New
York and a transcontinental
tour.
It is Nehru's first visit to the
United States, of which he has
been critical at times, partly on
the score of American race rela
tions. ,
A moderate socialist who
heads India's majority congress
party, he also has expressed
doubts in the past of the vir
tues of American style capital
ism.
At the airport, Nehru was
greeted in a cordial manner by
Mr. Truman, who had at his
side Secretary of State Ache-
son, Secretary of Defense John
son, and other cabinet members
Nehru was clad in the Indian
style costume, which included
a long brown coat, light colored
todhpurs and a small Gandhi
tyle cap. .
He responded to Mr. Truman's
welcome with brief informal
speech.
With the prime minister Is
his daughter. Mrs. Indira Gand
hi his minister of external af
fairs, corresponding to the for
eign minister, Sir Girja Shankar
Bajpi.
'Public Enemy No. 1'
Faces Death Sentence
Louisville, Ky Oct. 12
Earl D. Bircham, former "pub
lic enemy No. 1," faced a death
sentence today recommended by
a Jury which found him guilty
of killing a policeman in a gun
battle which ended in his cap
ture. The trial of the 48-year-old
prison escape artist ended quick
ly last night after one day of
testimony in a courtroom close
ly guarded by officers who
searched every spectator who
entered.
The jury deliberated one hour
and 10 minutes before returning
a verdict of guilty with a rec
ommendation for the death sen
tence.
Oregonians in
Alaska Suit
Anchorage, Alaska, Oct. 12 OF)
Several well-known Oregon
men and the name oi Nick Bez
prominent fishing fleet operator,
are figuring in a $90,000 mining
suit here.
Al Schneider, general mana
ger of Oregon Motor Stages of
Portland, was on the witness
stand for the fourth straight day
yesterday. He testified that Bez,
former crony of Washington's
Gov. Mon C. Wallgren and one
time fishing host to President
Truman, was consulted by the
Oregon men before they ad
vanced $70,000 to the Kougarok
ureogmg worp. ne menuoneo
Bez' name several times. He said
Bez had told him Kougarok Con -
solidated Placers, Inc., was a
good investment.
The Oregonians are suing to
cancel an agreement with the
Kougarok operators on the con
tention that its president did not
inform them as to the financial
obligations of the firm.
Other Oregonians In the suit
are E. Royce, president of Ore-
gon Motor Stages; C h a r 1 e
Stearns and Douglas Owens ofjrcpublic.
Medford, partners in a construe -
tion firm: Earl McNutt. former
Eugene mayor and ex-legislator;s'l'o" that our solidarity and
John McNutt and Thomas Chao-in'8h fostered by the ex-
man,
The Kougarok operators, P. J.
anrt Aurirov rniin fiiwi
counter-claim against the Oregon ' Provide inspiring leadership
men charging that they breached toward the achievement of those
the contract by evicting the Alas-jaims "
kans from gold mining premises' The weste hemisphere's de -
and by other actions.
Columbus an Example
Rome, Oct. 12 i) Christo-
pher Columbus must be an ex
ample of courage and endurance
to our generation. Premier Ai-
cide De Gasperi of Italy said in
message to the United States
for Columbus day.
K .,- . - , af ...
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i'J cStP7 Ov Svl
First flight of F t The air forces needle-nosed F-90, one of the largest fighter planes
ever flown, streaks over the Southern California desert near Murnc air force ba. This is
the first in-flight picture made of the stream-lined new twin jet which is designed to fly far
behind enemy lines. (AP Wircphotol
Admirals
ftap Atom warm re ineory
Truman Renews
Opposition to
58 Air Groups
Washington. Oct. It Ml Pres
ident Truman today renewed his
opposition to a 5S-grsup air force
iat a White House conference
.with members of the senate ap
propriations committee.
i he senators mm newsmen
I afterwards, however, that the
president suggested he would ac
icept the house position on funds
jfor stockpiling of strategic ma
' tcrials.
The two controversies are
holding up passage of an appro
priations bill carrying funds for
all the armed services.
For 48 Air Groups
Senate Democratic Leader Lu
cas (111.), who participated in the
conference, said Mr. Truman was
standing by his position in fa
vor of a 48-group air force, in
stead of the 58 groups insisted
upon by the house, because of
the "savings of $741,000,000."
Lucas and the other senators.
including Wherry (Neb.), the re
publican floor leader, said Mr.
Truman did not say he would
veto a bill carrying the house
version.
The outcome of the confer
ence at the white House left
the future of the bill as uncer
tain as ever.
Wherry Stands Pat
Wherry, who supported both
the- 48-group air force and the
S27 1.000,000 senate cut in the
house figure for stockpiling, in
dicated that he would not yield
on either count.
(Concluded n t'ict 5, Column it
Truman Talks fo
Latin America
Washington, Oct 12 OT
President Truman told a group
of Latin American diplomats to
day that the United States is
committed to "the exercise of re
presentative democracy" in the
western hemisphere.
The president made this ap
parent reference to Latin Ameri-
ican military dictatorships in
statement to the ambassadors to
the council of the organization
I of American states. The diplo-
mats paid a brief visit to the
White House in observance of
Columbus day, a holiday
throughout Latin America,
"We in the inter-American
system," Mr. Truman said in his
prepared statement, "subscribe
I fully to the principle of non-in-
tcrvention in the internal or ex
slterna! affairs of any American
1 "At the same time, we are dc-
finitely committed to the propo-
ercise of representative democra-
cy in the Amiran states. I am
confident that you will continue
Is,re ,or ecurny, mr- iruman
saiu, is noi primarily in oruer
Uanaed hi that we m nro-
igrcssivcly realize our vast possi-
bilities.
"It is this spirit which moti-
vates the growing exchange of
technical knowledge and skill
that has been talcing place
among our countries."
Halsey and King
17 'W i
t -1. y
a X K-
Top Admiral fa F.
("Bull") Halsey. Below, Ad
miral Ernest 3, King.
East Germany
Loyal lo USSR
Berlin, Oct. 12 " East Ger
many, the Soviet union's newest
satellite, pledged through its
communist government today to
give unswerving loyalty to Rus
sia.
The communist prime minis
ter. Otto Grotewohl, made the
pledge as he and his cabinet
were unanimously confirmed by
the people's chamber of the new
Soviet zone republic.
The 400 members of the
chamber by a similar unanimous
vote five days ago had set up the,
new state and prohibited Ger-i
mans in the east zone from vot
ing for at least another year.
In his induction speech, Gro-
tewohl laid down a six point
program:
1 Pledging eastern Germa
ny a "loreign policy to that
adopted by the Soviet satellite
foreign ministers at the Warsaw
conference in 1948.
2 Accepting the Gder-Neissc
frontier, which ceded former
German territory to Poland and
Russia, as a final "peace bor
der."
3 Developing trade with the
youngest peoples republic"
communist China,
4 A new economic plan even;, closed ci oor session. Senator
more intensive than the current
two year plan, to get unner way (
in 1950.
5 Abolition of food rationing,
i except for meat and sugar, next
'year.
! 6-Equal rights tor mier
jnazis who were not convicted of
nireci crimes, n nsn .
forces of
against any revival of naxism.
militarism or fascism."
security Slarkew t loseu
New York, Oct. 12 Seeur-
ity and commodity markets
throughout the United States
were closed today, Columbus'
'day. I
uik iitixr?i mm.- (anjHiticr marenea m.
Ask Congress
To Curb Power
Given Johnson
Washington, Oct. 1 Two
fleet admirals Ernest J. King
and William F. Halsey today
denounced the atomic bombing
theory sf warfare, and asked
congress to strip Defense Sec
retary Louis Johnson of power
to weakest the nation's naval
power.
Both five-star veterans of
World War II attacked what
they called the air force's "mis
taken, overplayed" theories of
intercontinental bombing. Both
said that in any war this coun
try must hurl it striking power
not at cities but at enemy mili
tary forces,
A-Bomb Overemphasized
King, wartime chiej of naval
operations, told the house armed
services committee that "we
have been over-emphasizing the
atom bomb and the bomber that
was planned to deliver it."
The next war, "if we really
expect to win It," will be fought
much like the last with vast
armies and navies and the "im
portant services" of long-range
bombers, he said (n statement.
To build up the mobile strik
ing power which he said this
country must have, Halsey urg
ed the committee to demand
completion of the 6Q. 000-ton su
per aircraft carrier scrapped by
Johnson.
He also said congress should
strip Johnson of authority to cut
naval spending below figures
approved by congress. The
committee has heard Johnson
plans to do juit that.
Halsey on Super-Carrier
As for the super-carrier, Hal
sey asserted that It Is "not
super" but merely "a normal de
velopment" from the carriers oi
World War H.
And another navy witness
Capt. Arleigh A. Burke, assist
ant chief ot naval operations in
charge of research declared:
"If we build this earner and
find we don't need it, the cost to
the nation will be $189,000,000.
If we don't build this carrier.
and find that we do need it. the
cost to the nation may be the
nation itself."
King said the notion that tho
air force's B-36 atom bomb com
bination frightens Binsia is
wishful thinking.
(Concluded en Face 5, Cattra I)
Progress on
Austrian Peace
Washington, Oct. 12 m Sec
retary of State Acheson told tho
senate foreign relations commit
tee today "a good deal of prog
ress" has been made with Rus
sia on an Austrian peace treaty.
Talkine with newsmen after
Jconnaliy (D-Tes), committee
chairman said Acheson advised
Die senators that the United
Stales and Russia have agreed
informally that Austria will
I have her pre-war boundaries,
ha wiM mcan, Connally
umt Austria will have the
same boundaries sne Baa w lore
Connally said Acheson report
ed "substantial progress has
been accomplished" toward the
Austrian treaty, tat he added
that questions of Danube ship-
jping. reparations, and ownership
(0f German-controlled property
in Austria remain to be settled,
Connally also said Acheson
gave a complete report on tne
entire Asiatic situation and dis
cussed "the probable recogni
tion" later of a communist gov
ernment in China.
"There has been no recogni
tion," Connally Mid, adding he
did not wish to go into the ques
tion further.
Timber Sales Drop
In National Forests
Portland, Oct. 12 Timber
sales and cut in the IV national
forests of Washington and Ore
gon dropped sharply during the
third quarter of this year com
pared with the same period in
1948.
The U S forest service report
ed yesterday that sales were
down to 302.80S.800 board feet.
less than half the 815,853,000 a
year asio Value was $i,254.063,
down from $3,536,610.
t