Capital AJournal
An Independent Newspaper Established 1 888
GEORGE PUTNAM, Editor and Publisher
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BY BECK
The Modern Age
4
Salem, Oregon, Saturday, January 14, 1950
A Freedom of the Press Issue
In an unprecedented first page announcement, The Ore
gonian, in a statement signed by Mr. J. Frey, general man
ager, bares a controversy with its largest advertiser, Meier
& Frank. News freedom was the implied issue. The
statement says:
"Last week The Oregonian published an adequate and impar
tial account of the findings of a National Labor Relations Board
examiner in a case in which the Meier & Frank company was
charged with unfair labor practices.
"Immediately Meier & Frank company canceled many pages
of advertising already set in type in The Oregonian composing
room and has since then, reduced its advertising space to a
fraction of tha store's former use. Meier & Frank company
has not directly Informed The Oregonian of the reason for this
sudden and drastic curtailment of advertising space.
"As a matter of traditional policy, The Oregonian strives to
report the news completely, Impartially and without fear or
favor. The Oregonian will continue to do so. We invite the
patronage of those who approve this policy."
Aaron Frank, president of the Meier & Frank Co., would
make no comment on The Oregonian's statement other
than to repeat what he said earlier when the county demo
cratic central committee first brought the controversy
into the open.
"The news and editorial policies of newspapers have no
effect on the advertising policies of Meier & Frank," Frank
said. "Further, Meier & Frank does not participate in
newspaper politics."
The Meier & Frank Co. may not participate In politics
now but it has in the past. In the political campaign of
1930, when the late Julius Meier was an independent can
didate for governor on the "Bull Frog ticket" pledging "free
power for nothing," The Oregonian was penalized by loss
of the store's advertising because it supported Phil Met
schler, the republican nominee for governor, instead of
Meier.
The boycott was effective enough in the long run to
force a general shake-up in The Oregonian's editorial and
business management, and the installation of a new regime,
and the M. & F. advertising reappeared. The old manage
ment evidently stood pat for freedom of the press and
walked the plank rather than capitulate.
The present issue does not concern politics at all and
Mr. Frank is probably correct, but it apparently does
concern freedom of the press, the right of a newspaper to
print fair and impartially the news of the day.
In the past there have been many instances where large
advertisers attempted to dictate not only the editorial
policy but the business policy of newspapers, though few of
them were successful and "them days are gone forever."
The big advertisers of today still try sometimes to dic
tate advertising rates, insisting that circulation be in
creased but refusing to participate in the increased cost
and coverage incurred principally for their own benefit.
There are instances where the big advertisers combined
to establish their own "Shopping News," and boycotted
the newspapers. They were such costly ventures in com
parison with results, that they have been largely aban
doned. An amusing feature of the present controversy is the
action of the Multnomah county democratic committee,
under the leadership of Monroe Sweetland, national com
mitteeman, in adopting a resolution commending The Ore
gonian "for courageous endeavor to present the truth and
protect the institution of a free press."
Sweetland has evidently been converted to the cause of
a free press along with his conversion to democracy from
the left wing Commonwealth Federation, which Earl Brow
ser welcomed as part of his "Democratic Front." Perhaps
it is the democratic party that has been converted to the
OCF.
In October, 1938, the Capital Journal commented on the
fact that at its annual convention, the Oregon Common
wealth Federation some 46 of its 141 delegates voted
against a resolution condemning Soviet Russia for aggres
sion on Finland, showing the communist strength in the
federation.
A day later the publisher of the Capital Journal and its
managing editor were sued each for $100,000 damages in
the Marion county circuit court by the "Oregon Common
wealth Federation," Monroe Sweetland, executive secre
tary. The suit was dismissed on motion of plaintiff Janu
ary 14, 1939.
That is what Sweetland then thought of freedom of the
press.
Salem Is Involved, as Well as the State
The state emergency board has indicated its faith in
the proposed extension of the capital zone north toward
D street. The board's action Friday left no doubt that
the zone should be preserved for future state buildings.
Although the attorney general felt the board had no
legal right to buy property without the legislature's au
thority, the board was just as definite in its opposition to
having an apartment house built in the zone. Buying the
lot in question and paying the builder's costs would mean
a relatively small outlay for the lot now as compared with
at least $300,000 for the completed building a year from
now.
Leaving aside the legal aspects of the problem, there re
mains the matter of trying to reach an agreement with the
Portland builder, Robert Coates, who has already commit
ted himself to $31,100 for the apartment house project on
North Summer street. The state can probably stretch it
Belf to buy only the lot on North Summer street. That
leaves the negotiations with Coates also up to the city of
Salem.
It would seem wise, therefore, for both state and city
officials to consider the problem of just compensation to
Coates. Coates has already admitted the moral obligation
of not proceeding with the building, but he feels he may
have to start construction in order to bring the case into
the courts for legal appraisal of his expense claims.
Seme compromise with Coates must be reached before
February 20, the date his commitment to FHA expires.
Nevertheless, the emergency board is to bo commended
for taking the initiative in face of an adverse ruling by
the attorney general. And, in this connection, it was grat
ifying to note that support for the zone extension came
from all members, -who in turn, represented various sec
tions of the state. In other words, the feeling to preserve
sites for stale buildings for the next 50 years in a beau
tiful vista is shared by all of Oregon.
PWOmSSnmS IT T BUT BV THE TIMS YOU ADD 3
V W wWM W WM ON FOR A HEATER, RAOIO, AUTOMATIC K
MWMMMSMPT.WHTE SIDEWALLS.. STATE AND f
4 THAT DOESNT SEEM IS FEDERAL TAX. AND THEN DEDUCT
t TOO MUCH TO PAY FOR FR0M MY SALARY FOR OLD-ASS $f
? A CAR FOR A MAN S7 RETIREMENT, UNION DUES, SICK M
. WITH YOUR SALARY a BENEFIT, GROUP INSURANCE, fIi
V r-V DEAR. rJ! C HOSPITALIZATION, WITHHOLDING,
r-S V'h TAX M0 EMPLOYEE S' C-M
WASHINGTON MERRY-GO-ROUND
Costello's Power Reaches
Inside Federal Government
Ed. Note: This is the second of Drew Pearson's columns
on gambling racketeers and how they affect our various
branches of government.
By DREW PEARSON
Washington In 1932, when Franklin Roosevelt advocated the
repeal of prohibition, one big argument was that liquor rack
eteers had become a law unto themselves, a group above the
government.
That argument was valid. But now the old liquor racketeers
have moved into the gambling -
racket where they still remain Maragon's transactions were in
a law unto themselves.
Last year a rash of stories on
Frankie Costello
BY CLARE BARNES, JR.
White Collar Zoo
THE FIRESIDE PULPIT
No One Knows Who'll Be
The Next Victim of Polio
BY REV. GEORGE H. SWIFT
Ractor. St. Paul'f Episcopal church
Some time ago, I attended a hospital meeting when the matter
of getting an instrument for removing metal from patient's eye
was mentioned.
One person suggested, giving a good reason therefore, delay
ing getting the machine until a much later date, and asked a
doctor present if it would be
were published
by Time, News
week and Ed
ward Folliard of
the Washington
Post, a great
newspaperman.
These stories
told how Cos
tello lunched in
style at the Wal
dorf, wore custom-made
cloth
es, owned an of
fice building on Wall street.
Unwittingly, these articles
Drew Pearion
cash the coin of the undeworld.
Maragon and General Vaugh
an also had enough power in
side the Truman administration
to overrule a housing order
against the remodeling of Cali
fornia's Tanforan race track af
ter being introduced to the
track's owners by Costello's
partner, Helis.
Though Costello probably
makes most of his money in
gambling, one source of revenue
is his partnership with "Dandy
Phil" Kastel, Bill Helis and Irv
ing Haim, as sales agents for
House nf Lords and King's Ran
som whiskies.
When republican senators
- .'' v
sty
.
I ' " 'ft fiffj
tended to paint such a glorified stumbled into this connection
picture of America's No. 1 gam- last summer, Helis immediately
bier that an impressionable issued a vigorous denial. He said
youngster might have been per- that at no time hed he ever been
suaded that this was the life associated with Costello in con
for him nection with the Whiteley Corn
It was even pointed out that ?wne" o House 01 Lords
Cos cello still lived with the same
wife; completely ignoring the
r:i . 11 "m v..i. : j
partment which are filled with "lclalJ "fV0"".!6!;
However, hew Is part of the
all right to do so. The doctor present appeal for funds, irre- conversations between Costello Whlt Ho"se. ?"end ?ll!,nHeliS'
ord regarding the partnership of
said, "Yes, unless in the mean
time a piece of metal gets im
bedded in your eye.
No one knows
who will be the
next victim of
poliomyelitis.
Thirty per
sons in Marion
county alone
were stricken
last year. If not
one of these
30 people was
a member of
your family or,, ow.il. swut
a close friend,
you may not be
impressed by the "March of
parable damage or even death
may overtake some patients.
I saw a picture once, the
title of which I have forgotten,
in which a man in agony with
an arrow in his back, was plead
ing for help. His comrades tried
to quiet him with the assurance
that a doctor of great reputation
was on the way. ,e
"I don't care what his reputa
tion is," said the sufferer, "has
he got a pair of pliers?"
The National Foundation for
Infantile Paralysis has a great
reputation. It is on its way to
every poliomyelitis epidemic
area. But it needs pliers.
Only the funds you and I
provide make possible the effec-
and a score of mistresses.
The tragic fact is that Costello
and the gang leaders he repre
sents have succeeded to an amaz
Farnkle Costello, and "Dandy
Phil" Kastel.
Nov. 8, 1937 A note for $225,
000 to Irving Haim at the Whit-
ocimo nave jullccucu w ail anui- . , . i , xt . -
ing degree not only in making National bank in New Or-
Tlmn nmt Kilt In mnkin Jt .
spectable. That is not a lesson tel. William Helis and Frank
that we want taught our youth. Costello.
Furthermore, when any one In 1938-Kast.el owed C. D.
group in our society sets itself Jennings of Chicago $45,000 for
up as more powerful than an- slot ou
leans was endorsed by Phil Kas-
other, democracy breaks down.
Hitherto Costello's chief In
fluence has been in the big cities
New York Miami and Los An
geles. But now he appears to
debt was signed by Kastel and
Robert Friedberg with Alliance
Distributors stock certificates put
up as collateral. Alliance Dis
tributors is the name under
which Costello, Kastel and Hel
is operate. To meet the note Al-
Dimes" campaign to rebuild re
pleted reserves, or exhausted tiveness of its work. It cannot
treasuries of infantile paralysis do much without pliers,
committees. But you, or some- It is imperative that we sup
one dear to you your wife or port our local chapter through
child, may be suddenly stricken, its March of Dimes campaign,
If you and I, and hundreds of in order that it may have the
thousands of others, do not re- means at its disposal to provide
spond now and liberally to the another pair of pliers.
l!001! lnSide the fed- Uance DlstdbuiorV arrang'ed to
Just a Slip of the Tongue
eral government,
The amazing fact is that Cos- turn the proceeds over to C. D.
ikuu uuiuu oe aeporiea irom tne Jennings.
uii-ieu oiaies ana sem oactc TO
Italy tomorrow if the justice
department wanted to. For,
when Costello swore out his
American citizenship papers in .
100c u j 1 i... amount.
uc ucijuicu iiiitibuii re
garding his criminal record.
sell 2,000 cases of whisky and
Aug. 23, 1938 Bill Helis paid
Irving Haim's note for $225,000
at the Whitney National bank
with his personal check for that
"Wanna buy a chance an a plastic cocktail shaker?"
POOR MAN'S PHILOSOPHER
Men, Look Out! Women
Want You to Wear Skirts!
By HAL BOYLE - v
New York (IP) There is a new theory that men ought to spend
less time chasing skirts and more time wearing them.
Yep, that's right, fellows, S-k-i-r-t-s for men Instead of
t-r-o-u-s-e-r-s.
Naturally this idea didn't come from a man. It was cooked
up by a groupmnWH miMM
hat. She will also chew tobacco
and spit through her teeth, and
only her mother will love her.
However, I don't believe Lily
Dache, Hattie Carnegie, and tha
other designing ladies will suc
ceed in inflicting leather hand
bags or plaid skirts on men. And
certainly I will refuse to wear
a beret unless it has a propeller
on it, such as those so popular
now with the small fry.
Th nlain truth is that the ev
ery woman knows, the biggest erage man no longer thinks it is
thing wrong with men is the just dandy to dress like a dan
way they dress as much alike ,jy, He doesn't want to return
as polka dots. to the silk-and-satin period of
yr, as uesigner uuy uascne his past. Nor does he pine lor a
of high - priced
lady desginers.
They were ask
ed by the cos
tume institute
of the Metro
politan Museum
of Art to figure
out what the
man of the fu
ture ought to
wear.
The ladies
leaped at the suggestion. As ev-
Hal Borla
crisply put it:
"It's a good thing that they
bunch of lace at his throat.
Man has gone from armor to
Portland, Ore., Jan. 14 U.R) A slip of the tongue gave mu
nicipal court clerk Howard K. Pierce a red face. lie asked a
defendant:
"You're charged with being guilty are you drunk or not
drunk?"
MacKENZIE'S COLUMN
Britons Interested in Security
Rather Than Private Initiative
By DeWITT MacKENZIE
iUfi Porelio Aflalrj Analyst)
The general election which finally has been set by the British
socialist government for February 23 is one of the most mo
mentous in the long history of that country.
It is no ordinary election. It is a pause for an accounting of
the stewardship of the country's first completely socialist regime.
Ana upon tne
Sept. 15, 1938 An agreement
1 1 Tvi.t.(Y
f1 other immigrants Hajm and wiuiam Helis glving
an interest in J. G. Turney and
have been deported for doing
exactly the same thing, but they g Lw th companv
have lacked something which t:- r T,n,Q
I ncf nil r hae inf nonna
Lords whiskies.
At this very moment, another Scpt 16 1938A recept was
&. -..6j, to v. v.., XTai b tnv in nnn nrH n.
rial in San Prannl o.6."u "J "
ary shares and 35,000 preferred
ly the same charge-perjury in shares of stock.
PaPers' Sept. 1, 1939 Lloyd Cobb,
This column holas no brief for Helis' man in New Orleans,
Bridges. But everyone should be wrote A. G. Reynolds, Helis
treated equally. And It's an iron- man in London, enclosing a clip
ic fact that "Jiggs" Donohue, a ping from the Washington Mer
private attorney who has had ry-Go-Round, linking Helis to
contacts with the Maragon-Cos- Frank Costello.
tello crowd, is now retained by Jan. 13, 1941 An interoffice
put tags on men at conventions elegance to utility in his attire.
to tell them apart. He has completed his. evolution.
Women, on the other hand,
Well, if men start wearing are still mixed up in the matter
what these fashion experts of what to wear. They are iml
dreamed up for them, they prisoned by armor the girdle,
won't need to wear tags. They Furs and high heel shoes lend
will probably be caught in nets them elegance. There is also
and pinned on boards like but- something about their clothing
terflies. that observes the principle of
Among other items, the girls practicality, but I have forgot-
suggested: ten just what this is.
Jackets of pale yellow doe- The futility of women's cloth
skin with big, big buttons. Ing is more impressive than its
A wrap-around skirt of plaid utility,
silk.
A collarless suit with a sewn-
in shirt dickey.
Our economy is still based on
one car to a family and one
the justice department to prose
cute Bridges.
President Truman, I am con-
memo from A. G. Reynolds in
dicated that Phil Kastel's $100,
000 note and Haim's $225,000
note hadn't been paid. The
Berets with colorful sunburst peacock. Mamma is the peacock.
patterns. the only one we can afford. Man
Shoulder strap leather hand- has had his turn at being th
peacock, and found it wasn't
worth the fine feathers.
The soundest hint of what the
outcome of thalp
account ing
hinges the far
reaching deci
sion of whether
England shall
continue as a
socialist state
or shall scrap
socialism and
return to "cap
italism
Perhaps the greatest strength
of the socialists lies In the fact
that the rank and file of work
ers have had a rather tough
time during the past generation.
Of course this has been due to
a lot of elements, including two
world wars which have raised
hades with the economy of the
country.
However, what probably re
mains foremost in the minds of
the man In the street is that
capital and labor weren't able
to get together, and both sut-
lered.
A typical example was the
national crisis of 1925 in the
I would be the last to under
estimate the power of women
But if the man of the future is future man will wear has been
ever induced to go about in given by Winston Churchill. He
this he-moth attire, I have no likes to lounge in a pair of cov-
hesitancy in predicting what the eralls. Zip you're in! Unzip
ii.rtman nt tha ...ill , .1
tello appears to have a powerful July 7, iai ueorge ver 2ike she wiu wear a pin.stripe papa is much more ukely to
suit trousers and a double- go for that than wear the skirts
breasted jacket and a derby in his family.
vlnced, knows nothing about memo referred to a letter agree
rwn in.,.n. t-.i ment between Helis and Haim
ernment and would not stand for whereby both notes would be
it If he did. Neverthelesn. Co.- rePB,a
friend inside the bureau of In- "me to.New Jor,k,rom
ternal revenue, and this column r,1,!ansTTto. seB CoellU Coste"
has previously published the de
tails on the fixing of a federal
calling Uffner on the phone said:
You and Bill Helis meet me
If the decision D,wl
is that socialism shall be con
tinued in power, It in all prob
ability will mean that this ism
has come to stay indefinitely.
now because it hasn't had time a-Jmportant coal mining in-
to sink its roots and get a firm JV;' . ....
grip on the country. But give It Tn0 mine owners called for
another five years and it will so "age reductions, claiming that
have changed the way of life and the mine" wer.e.n P"1" their
economy of the nation that a way. bef,aus of increased cost of
turning back would be difficult. E.roiUCtlon fTd l0!" m"kets
, , , .. In the world war. The miners
That Is to say, if the conserv- were agalnst cut. Bnd maintan.
at Ives under the leadership of ed among other things that tha
Winston Church 11 are to regain lroubl(, wa, th wa.tofuine of
power they will have to turn piece-meal o w n e r s h i p. Th.
the trick next month. Five years workor, caUed (or natl(all.
will be too late. Socialism will tlon ol th , , overcom
be rooted. this.
So Britain Is at the parting of Living conditions among the
the ways. miners in many districts were
Which road is she likely to terrible. In many areas the min-
ake? ers' families were both hungry
Well, the prophets are evad- and cold, as I well know since
ing that one and are mumbling I was stationed in London for
in their beards. Independent ob- the AP at that time. The great
servers think the election will general strike of 1928 (the
be close. Being of Scotch de- world's first general strike) was
scent and canny, we avoid pre- an outgrowth of this situation,
dictions.
However, the winning side Is There are plenty of British
likely to be the one which the voters who remember those
rank and file think will do most tough days. They also note that
for the welfare of the home and the coal industry has been na-
family. tlonalized under the socialists.
The average Briton thinks In The socialist government also
terms of the family. That feeling has inaugurated its big medical
Is so pronounced that he will welfare program, which has an
cling to a job which pays a small appeal In England,
wage but is lasting rather than These facts may register hea-
take a chance on highly paldwork vily when the ballots are cast,
which Isn't certain to last. It's The rank and file are going
on that basis that he is going to io vote for the party which they
weigh the respective merits of think can provide that "secur-
the major parties in the elec- ity first." There will be less in-
tion. terest In "private Initiative."
tax-fraud case involving Los Jn .tne l.bl??. '""i8"' at ,'even
Angeles gamblers. o-ciock, "grange wants to see
. . , me that will be all right." (Dean
Last lumjiM, Sen. Clyde Afange ls Helis' lawyer, who
Hoey's investigation committee also ,8sued a denlal laat 8ummer
also "tumbled onto the fact that ,nat Heli waJ ever connected
ex-whlte house friend John Mar- witn costello)
agon, now under indictment, had Feb. 1D47HeHs, when Inter
been employed by Costello s vlewed b tne New York ,tate
Pa?T. my,1 ..?",'ie1, .uor authority, stated that
and that Bil Hells, he "Golden jlm had aid ft money owed
Greek," another partner of Cos- hl and tnat he and Haim now
tello's had been a contributor to owned e ual 8hares ln j, q
the Truman campaign Turney and Son.
Maragon was found to have a Auguat 1949 William Helis
secret banking account ln El denied to press he nad
Paso, Texas, which over a period ever assoclated with Frank
SVmnenCA ? ?ed. " muc.h " Costello ln connection with the
$135,000-A lot of money for a whlteley Company, the wholly
man who complained that his owned ;ub8dlary ''f j. q t.
salary averaged around $4 000 n and Son
annually. Furthermore, most of (Oopwum imo
OPEN FORUM
Apartment in Capitol Zone
To the Editor: I have been reading In the papers where It
has been suggested that people send in contributions for a
Mr. Robert Coates, who recently purchased a lot on North
Summer street for an apartment building and is now in the
frozen area.
It seems rather odd that he apartment is located on another
would need any financial help. lot' he no doubt will use the
For If he had watched the papers me plans' The plans are flexi
he would have known that the '
state was planning on taking NANCY STUMP YOUNG
over this property in the future Salem
as the pictures and articles of (Editor's Note: Mr. Coates of
the proposed area have been in or"and obta(ined legal right to
both Portland and Salem papers. b:mld an aPart"' house on the
T, . , i Summer street lot. The freeze
, v ,y.uany C .an,e he over" on the area t Prevent such
looked these articles, is seems buldlngs was not put in until
to me that it should of been the day after he got his building
the duty of the real estate man permit. The archItect started
that sold him this lot to have drawing plans for the building
advised him of the future plans ,ast September. The capitol
of the state.
planning commission announced
I also see where they request its plans for the zone in Novem
$15,600 architect's fee. If this ber.)
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