C apital HOME EDITION V 61st Year, No. 302 SSEffrfSfiSS Salem, Oregon, Tuesday, December 20, 1949 (22 Pages) Price 5c THE WEATHER HERE CLOUDY WITH rain tonight; becoming partly cloudy with showers Wednesday. Slightly warmer. Lowest tonight, 32 de grees; highest Wednesday, 40. Maiimttm rtiterdar, Ml minimum to day, 80. Total 34-hour praelpltatlon, tracei for month, t.&ti normal, 4.04. Seaaon pra elpltatlon, 12.4a; normal, 14.1. Hirer hrliht, 4.7 feet. (Report by V. S. Weather Bureau.) uraai 2701 Loans lo Veterans Since August, 1948 State Made 1000 More Than During Past 3 Years By JAMES D. OLSON Almost 1000 more state veter an loans were made from August 1, 1948 to November 31, 1949 han were made during the pre vious three years, according to W. F. Gaarenstroom, director of the department of veteran affairs Tuesday. From the time that the first loan was made to an Oregon V World War II veteran in Sep ' tember, 1945, until July 31, 1948, a total of 1746 veteran loans were completed. From August 1, 1948 to No vember 31, 1949, the total num ber of loans made totaled 2701, Gaarenstroom said. Details of Loans Out of the proceeds of $18 mil lions of bonds sold by the depart ment, $17,583,490 had been loaned out on farms and homes as of Nevember 30, 1949. Loans made by the department average $4180 although the legislature has authorized loans up to $6, 000. A block of $3,000,000 of vet eran bonds will be offered for sale on December 28. The inter est on the bonds have been run ning between VA and 1 per cent. Federal Loans Taper Increase in veteran applica tions for loans came after G. I. government loans began to taper off and also after the depart ment was granted authority to loan up to $6000. Gaarenstroom said another indication of the in crease in loans made was shown by the fact that the department paid out $215,000 in taxes in the tax year of 1949-50 as against only $98,000 in the previous tax year. Taxes on property on which loans are made are included in J the monthly payments made by the veterans. The department then pays taxes on all property on which loans have been made, getting the benefit of the three percent cash discount as well as preventing any of its properties going on the tax delinquent rolls. Payment on Principal A total of $2,002,915.84 has been received in payment on principal on loans up to Novem ber 30, 1949, the director said. (Concluded on Page 5, Column 8) 250,000 Pieces Mail Stamped The cancelling machine of the Salem post office stamped 252. 000 pieces of mail Monday the highest total in the history of the office, reported Postmaster Albert C. Gragg. While he did not reveal the gross receipts, they, too, constituted an all-time high mark. ,; In spite of extremely heavy mailing, incoming as well outgoing, the post office has been able to clear its daily han dle of parcels and greeting cards each day. This has been accom plished by working around the clock and by employing 74 extra carriers and clerks. The mailing of hundreds of ''slate income tax statements as well as many automobile li cense plates have placed an add ed burden on the post office fa cilities. However, these are be ing handled in stride, the post master states. Two full carloads of incom ing mail reached Salem Monday and it is expected the peak in this connection will be reached Wednesday or Thursday. Dallas Police Car Crashes City Truck Dallas, Or., Dec. 20 What Dallas wants for Christmas is an accident-proof police car. Driving in an alley Monday Officer R. A. Cruezen was un able to stop in time to avoid crashing into a city sanitary ser vice truck which backed into the alley. Damage to police car was around $200. Three weeks ago Officer Cruezen was struck at an in tersection by an automobile driven by a Sheridan man who failed to heed the siren on the y police car. Result, the police car was so badly damaged that it was deemed cheaper to turn it in on a new one the same car that was damaged this week. Woman's Club Protests Zone Change Asked Hearing Scheduled On Price Cottage Street Application The Salem Woman's club will have a strong representation be fore the city planning and zon ing commission on Tuesday night to back up a written re monstrance against a zone change adjoining the club's property on North Cottage street. A public hearing is sched uled. The application is by O. L. Price, who asks for a change in zone classification from Class II residential to Class III busi ness. The Woman's club will ask the commission to delay its rec ommendation to the council. Some objection to the applica tion would be removed, it was said, if the whole immediate area were changed, since that would give the club a chance to sell its property for business purposes. Involved in the application is property at the northeast cor ner of Center and North Cottage streets, extending northerly along North Cottage to the Sa lem Woman's club premises where the club house is located. Four-Foot Strip Involved Involved in the argument is a four-foot strip of property on the north side of the property line. With a Zone II classifica tion buildings can't be set up closer than four feet to the line without consent of the adjoin ing owner. Under a Class HI zone provision construction can be to the property line. (Concluded on Page 5, Column 7) New York City To Tap Hudson New York, Dec. 20 VP) City officials ordered "full speed" to day on plans to tap the Hudson river for 100,000,000 gallons of water a day to help out in the shortage which threatens to last for years. . The Hudson tapping project which normally would take year to complete and cost $5,- 000,000 to $10,000,000 is count ed on to supply somewhat less than one-tenth of the city's nor mal consumption of well over l,r 000,000,000 gallons a day. Formal city, state, and feder al authorizations for the under taking are required. The plan announced yester day is to run Hudson river wa ter into the Delaware aqueduct at Chelsea, N. Y., about 15 miles south of Poughkeepsie. The wa ter would be purified chemically at its source, and made "ultra safe" by routing through reser voirs. The New York City board of water supply announced the start of plans to tap the Hudson, about 50 miles north of where it empties into New York bay. Similar plans were .suggested after a conference at Albany yes terday between Gov. Thomas E, Dewey and state officials. The governor accused the city of neglecting its water needs de spite repeated warnings Vandenberg Doesn t Want to Try hat Case By DON UPJOHN Judge David R. Vandenberg, circuit judge from Klamath Falls in Salem on trial of another case, advised attorneys in the case of Lebold vs. Salem high school district and others, involving suspension of 18 students of alleged secret society affiliations, that before he decides whether he will accept an assignment from the supreme court to try that case, he wants them to know where he stands on the question of secret societies. While he made his attitude clear to Ralph E. Moody, guar dian ad litem for the high school student plaintiff, and George A. Rhoten, one of the defense attorneys, he had an appoint ment for Tuesday afternoon with Donald A. Young, also a defense attorney, to explain his stand to him. Judge Vandenberg told Attor neys Moody and Rhoten in the morning that while he had never belonged to a secret society in his life he had no objection to any man belonging to a secret society, as long as it was not in violation of the law. "I do not want to try this case," Judge Vandenberg told the attorneys, "but if by any chance I should, I want you to be advised just where I stand ai to 55,000 Jobless On December 1 Unemployment this winter this winter probably won't reach last February's peak of 93,000 jobless. This prediction came from tne state unemployment compensa tion commission today The commission said there were 55,000 jobless in Oregon on December 1, Dut mat lay offs now are much fewer than they were a year ago. The commission said that in most sections of the state, the number of employed is about the same as a year ago. Of the 55,000 unemployed as of December 1, 22,900 were in the Portland area. Figures for other districts having more than 1,000 out of work are: Salem 5,000, Eugene 4,650, Astoria 2,100, Coos Bay 2,020, Oregon City 1,950, Roseburg 1, 730, Klamath Falls 1,650, Med ford 1,400, Lebanon 1,200, Mc Minnville 1,200, Grants Pass 1, 150. Totals for other districts: Toledo 950, Corvallis 780, La Grande 750, Pendleton 725, On tario 685, Albany 635, Baker 625; Bend, Freewater, Hood Riv er and Tillamook, 600 each; The Dalles 525, and Lakeview 275. Christmas Tree Lighted Tuesday Salem's living Christmas tree on the courthouse lawn will be lighted tonight by the Salem Cherrians at 7:30 o'clock. The tree, the first living Christmas tree in the world to be lighted and now the tallest living Christmas tree in the world, was first lighted by the Cherrians back in 1913. With the exception of war-time years it has been lighted every year since. Ceremonies for the lighting of the Christmas tree will be open ed by County Judge Grant Mur phy and a program of music and a historical talk by Judge Rex Kimmell is to follow. After this will come the children's part of the program, when those children present are to be pre sented treats by the Cherrains. Members of the committee planning the ceremonies for to night are Fred Starrett, Judson Bressler, Robert M. Fischer, Jr., Marty Boesoh and Douglas Yea ter. these certain matters." George Rhoten told Judge Vandenberg that "I am only water boy in this case and I'd like to have you tell your posi tion to Donald Young, who is the quarterback." As a result the appointment was made for the meeting Tues day afternoon when the judge will reiterate his stand to Young Judge Vandenberg indicated that if his stand was such as to cause any objection on the part of the attorneys to his serving he would not accept the assign ment. "I want you to know just where I stand," he told them Judge Victor Olliver of Linn county had been assigned to the case by the supreme court, but Ralph Moody later Interposed a motion for the appointment of another judge which resulted in the court asking Judge Vanden berg to take, th assignment. High School Students Sing Carols The Seniorettes and the Swing choir are contributing to the Christmas spirit at Salem high school. Here is a combination of the two student musical organizations singing before one of the Christmas trees at the high school. Winter Strikes Blow A t Entire Northwest (By the A.ssoclaled Press! Winter struck its sharpest blow at the Pacific Northwest in the early morning hours today. Temperatures skidded below and sub-freezing marks were general. Scattered skiffs of snow fell in Cold Wave Hits Central West (By the Associated Press! Wintry weather spread an icy finger over the central Rocky Mountain states and headed into the upper Missouri valley today. The eastern and southeastern parts of the country had com paratively mild temperatures. The mercury dropped to sub zero levels throughout most of Montana' and"partsof NorthDa kota ' and Wyoming today. In Montana, it dipped to 20 below, zero at Havre; 19 below at Lew istown and -18 at Custer. Wil liston, N.D., reported a low of -10 and it was -5 at Lander, Wyoming. Snow fell throughout most of the cold belt and strong winds piled rifts on many roads. Ice- glazed highways and streets in many areas slowed travel. Salt Lake City reported 35 accidents, many resulting from city streets, over a 24-hour period. Heavy snowfall was re ported in northern Utah. School buses in some sections were blocked by drifts. The storm moved slowly northeastward to the upper Mis souri valley and Mississippi val ley but temperatures were ex pected to moderate. Colder air also has moved into the north Pacific states and there was light snow in the extreme north ern Rocky Mountain states. The weather bureau reported considerable log early today over most of the southeastern part of the country. The fog halted or reduced air travel and cut highway travel over most of the -area from the Carolinas to Mississippi. Drizzle was reported over parts of Wisconsin and Minne sota but temperatures in those areas and other parts of the north contra! states were above normal. Armistice on A Bombs Asked Lake Success, Dec. 20 (P- Carlos P. Romulo, president of the United Nations assembly, to day proposed a temporary ar mistice in the production and use of atomic weapons. Romulo said his proposal was made in the hope of halting a costly race between the United States and Russia for atomic su premacy. He stressed that his plan was intended only as an in terim measure to give more time for the working out of a per manent atomic control plan. The Philippine diplomat handed his proposal to Gen. A. G. L. McNaughton of Canada shortly before a secret meeting of the six permanent members of the UN atomic energy com mission. McNaughton is this month's chairman of the six con ferees, which also include repre sentatives of the United States Russia, Britain, France and China. Romulo'i proposals followed closely those set forth in an ap peal by him November 3, but this time they were offered as a concrete plan. the zero point at many places eastern Washington and north- em Idaho adding hazards for motorists traveling highways al- ready coated with snow and ice in many places. The threat of more snow ap peared today as a cold wave froze Oregon all the way from the usually mild coast to the chill reaches of eastern Oregon. The unofficial low was a read ing of 18 degrees below zero at Bly in the Klamath basin Austin reported an unofficial 8 below. Burns and Baker had an official 7 below, The forecast was for increas ing cloudiness with snow cer tain for much of eastern Ore gon and in the higher elevations of western Oregon Rain, probably turning to snow tonight, was the outlook for many western Oregon cities, in cluding Portland. Only slightly warmer tem peratures scarcely enough to be noticeable are expected. The change will not be more than a few degrees, the weather fore caster said. A foot of snow on high ranges in central Oregon drove hun dreds of deer to lower eleva- tions. many fields Many their them Ranchers complained were moving into farm and eating haystacks. ranchers began baling haystacks and hauling away in order to save them. (Concluded on Page 5. Column 8) Selecting Jury In Libel Trail The $150,000 libel action of Andrew C. Burk, ex-sheriff of Marion ctjunty, vs. George Put nam, doing business as the Capi tal Journal, got under way ir circuit court here Monday with Judge David R. Vandenberg, Klamath Falls, presiding under special assignment from the su preme court. Attorneys told the judge they estimated the case might take a day and a half for trial. Tuesday morning was given over to the selection of a jury of 11 women and one man, with a brief statement from Glen T. Jack, Oregon City, one of the attorneys for the plaintiff, in which he said that Burk was asking for damages for alleged false and defamatory" matter he charged was "maliciously printed," in an editorial in the Capital Journal October 30 1948, which he said the defend ant claimed defeated his candi dacy for the office of sheriff for which he was running at that time. Appearing with Jack as an attorney for the plaintiff is Paul T. Burris of Salem. The defendant is represented by Ralph E. Moody and John H. Carson, both Salem attorneys. Burk in his complaint asks $50,000 as general damages and $100,000 as punitive damages he charges he sustained. The de fendant, in his answer avers that statements in the editorial were fair as made in the heat of campaign for public office. Hobson Heads Guernsey Men Eugene, Dec. 20 P) Roy Hob son of Amity was elected prcsl dent of the Oregon Guernsey Breeders association yesterday at the annual meeting here. Oth er officers are L. L. Lombard, Klamath Falls, vice president Ben A. Newell, Salem, secretary-treasurer. Hans Lcuthoid of Tillamook is the outgoing presi I dent. O'Dwyer Weds Miss Simpson At Stuart, Fla. Simple Ceremony at Catholic Church Then Leave on Yacht Stuart, Fla., Dec. 20 ( Mayor William O'Dwyer of New York, tanned and happy, was married today to radiant Eliza beth Sloan Simpson in a sim ple ceremony at St. Joseph's Catholic church. A rainbow arched in the sky as the couple entered the flower-bedecked wooden church for the rites. Rainclouds hovered near the town. The Rev. Timothy J. Geary performed the ceremony which he described as "very simple and very beautiful." Lasted Eight Minutes The ceremony lasted eight minutes. Both O'Dwyer and his bride were deeply moved and ex changed vows in voices hardly above a whisper. O'Dwyer's voice could not be heard in the first row as he an swered after Father Geary, "I, William O'Dwyer, take thee, Elizabeth Sloan Simpson, for better or worse, richer or poorer, in sickness and in health, until death do us part." Miss Simpson repeated the same words in a slightly firmer voice. She stood erect and looked at the priest as he blessed the ring, first in Latin, then in English. Places Ring on Finger Best man David Martin, gen eral manager of the New York Athletic club, handed the ring to O'Dwyer. Miss Simpson turn ed and the ring was placed on her finger. (Concluded on Page It. Column 8) Sackett Buys Seattle Radio Seattle, Dec. 20 W) Entry of Sheldon Sackett of Coos Bay, Ore., into the Seattle radio field was announced here today. Robert E. Priebe, one of the three owners of station KRSC, reported the station's sale to the Sackett interests, subject to fed eral communications commission approval. KRSC has operated as a non-network station since 1926. Priebe said all of the stock was sold for an undisclosed price. It will be the fourth Sackett radio station. He operates sta tions now at Vancouver, Wash., and Oakland, Calif. (KROW) and a radio station and newspa per at Coos Bay. Fred Chitty of Vancouver was here to carry on the negotiations for Sackett The sellers are P. K. Leber- man of New York, Attorney John Ryan, Jr., of Seattle and Priebe. They have been the own ers since the station was opened in 1926 as a pioneer in the Inde pendent field, Priebe said. He said an application for transfer will be filed with the FCC next week. Sackett would take over within 20 days after FCC approval. KRSC pioneered television in Seattle but later sold its tele vision operation to another Se attle station. Complete Plans For Annex to City Hall By STEPHEN A. STONE It will be police headquarters, but won't look like it. .That is the desire of City Manager J. L. Franzen for the City hall annex recently authorized by the city council on the man ager's recommendation. Plans for the annex had been completed today by Frank Stru- ble. architect. Construction to be immediate, and Franzen said that if money is available he hopes in another year to build a similar structure on the north side of the City hall front steps. The annex now authorized will be on the south side of the steps as previously announced. It will be 20 by 24 feet. The present double doors at the entrance to police headquar ters will be moved out to the entrance of the annex. The doors will be at a line four feet from the line of the bottom of the steps, with a marquee four feet wide overhead. The present heavy stone wall and arch at the entrance will not be torn out, but the arch will be altered and th wall will form a partition NLRB Hearing Independence Bridge Dispute Whether the teamsters' union shall be the bargaining agen cy for employes of Valley Con crete company of Independence is the issue in a hearing being held Tuesday by Robert Till man of the Seattle office of the national labor relations board. The hearing is being held at City hall, with James Landya, of Green & Landye of Portland, attorney for the labor organiza tion and Pat Blair representing the concrete company. The employing company pe titioned for the election. Tillman said that before the board can decide the issue it has to deter mine whether the company op erates in interstate commerce, and testimony was being taken Tuesday forenoon on that part of the case. If it is not in interstate com merce, Tillman said, the board is not interested. If it is, then the board may or may not order an election. Ma ragon Probed By Grand Jury Washington, Dec. 20 VP) A grand jury today began looking into the case of John Maragon, one-lime frequenter of the White House, who is accused by sena tors of lying to them under oath For the grand jury, the ques tion is whether there should be an indictment for perjury. That is a crime carrying a possible penally of two to 10 years in jail on each count. Maragon is the former Kan sas City bootblack who had a friend in presidential Military Aide Harry Vaushan. He has been accused of lying wncn ne denied to senate "five per cen ter' investigators that he never got any money for handling business deals with government agencies. The first witness before the grand jury was Gilbert Halasz, a shorthand reporter who re corded some of the hearings at which Maragon made his appeal. Waiting to appear as witnesses were Harold Ross, president of Allied Molasses Company, Inc., nf Perth Amboy, N.J.; Milton Polland. Milwaukee Life Insur ance agent; and William P. Kog- prs. and Carmine b. ueiiino, counsel and accountant for the senate investigators. Polland testified to the senate nvestigatine committee that he nald Maragon more than $1,000 in an attifrnpt to obtain cancella tion of an order suspending the sugar ration of the Allied mo lasses company. Diana Barrymore's Furs Burglarized New York, Dec. 20 (IP) Rob prt Wilcox, motion picture ac tor, was found bound and gagged today in the apartment of Actress Diana Barrymore, daughter of the late John Barry- more. Police said he was tied up by two men who ransacked the apartment. Police said Wilcox told them he was alone in the apartment when two men appeared at the door al 9:30 a.m. and said they wanted to leave flowers for Miss Barrymore, who is con fined to Roosevelt hospital from the effects of a fall. it - between the new construction and the present interior with door between. On the inside of the annex the sergeant's desk will be about ihe center. Other accommoda tions will be a table for the use of persons making traffic acci dent reports, a telephone booth three desks along the north side fully covered with filing cases and cabinets for police records. The present room where the sergeant's desk stands will be divided into three rooms. The chief's office room will remain as it is now. Above, reached by a stairway, will be a sort of mezzanine with three rooms. There will be no movement of prisoners in this part of the po lie station. Truman Back From Vacation Looking Rested President in Fighting Trim to Do Battle For 'Fair Deal' Washington, Dec. 20 VP) Pre sident Truman returned today from a thrce-weck Florida vaca tion, looking fit and rested for the weeks of hard work ahead of him. His plane, the Independence, landed at National airport about 12:30 p. m. (EST) after a three hour, 46 minutes flight from Key West. A large crowd, including sev eral cabinet members and other government officials, turned out to greet him. He waved cheer fully as he started to leave the plane. He was in fighting trim ex cept for the waistline to do battle in congress for his "fair deal" and stump for it in the 1950 congressional elections. In Good Health Tanned, relaxed and cheerful. he looked in good health in spite of the "bay window" which ap parently was of less concern to liim than to his physician, Brig. General Wallace H. Graham. The big DC6 presidential plane, the "Independence," was ordered warmed up for a take off at 8:45 a. m. (EST) from the nearby Boca Chica airport on a flight estimated to require from three and a half to four hours. Mr. Truman is going down the line in his "state of the union" message for virtually every measure congress denied him last year. The measures include civil rights proposals topped by the fair employment practices bill the national health program, expanded social security and additional power and reclama tion projects, among others. No Turning Back Aides emphasized there will be no "turning back" from the course he advocated in his 1948 speechmaklng campaign and that he is ready to take the stump again next year to help elect candidates to congress who think along his lines. Final decisions are yet to b made on whether to seek elim ination of war-time excise taxes and to advocate higher taxes on profits to offset them and at tempt to balance the budget for the fiscal year starting next July 1. Mr. Truman has called a full- scale cabinet session at the White House for 10 a. m. (EST) Thurs day to discuss these and other problems. Then, he flies to Independence, Mo., Friday to remain until Dec. 28 to spend the Christmas holi days with his family. 27 Nazi War Criminals Freed Landsbcrg, Germany, Dec. 20 (P) Twenty-seven smiling Ger man war criminals were freed today from the U. S. army's Landsbcrg prison for good be havior during confinement. They had served the greater part of three and five-year sen tences given them by U. S. mili tary courts for war crimes. All their sentences would have ex pired next June 30. None was a big-name nazi criminal. These were the men who commanded nazi concentra tions camps, who served as camp guards or mistreated captured American airmen. The oldest was Friedrich Katz, 60, a former Wiesbaden policeman, convicted of taking part in the murder of American fliers. Col. Waller R. Graham, the prison commander, said that 27 others probably will be released tomorrow. One other prisoner eligible for release is ill in the prison hospital. The U. S. high commission an nounced yesterday that five top nazi criminals, convicted by Am erican courts at Nuremberg, also will be released. They include Ernst Wilhelm Bohle, English born SS general who was head of the nazi party's foreign organiza tion. Colonel Graham, whose home is in Bozeman, Mont., said how ever, that he has not yet receiv ed an order for their release. Pope on Radio Friday Vatican City, Dec. 20 (P) The pope's Christmas message in response to greetings by tho college of cardinals will ba broadcast over Vatican radio at 11 a.m. (2 a.m. PST) Friday, the - newspaper Osservatore Romano 1 announced today