Capital Journal
BY BECK
Parental Problems
BY CLARE BARNES, JR.
White Collar Zoo
TIME GETS SCOOPED
This week Time magazine carries two columns patting
Itself on the back for breaking the inside story on the
backstage debate in the Truman cabinet over Formosa. The
scoop for which Time congratulated itself was published in
the issue of January 9.
Time editors, however, obviously overlooked the con
sistent newsbeats of the Washington Merry-Go-Round on
the same subject. On December 22, long before other
Washington news-bounds scented what was up over For
mosa, Drew Pearson carried a lead story reporting that
the joint chiefs of staff had reversed their policy and
recommended that Formosa be occupied by U. S. marines.
The clash between Secretary of Defense Johnson and Sec
retary of State Acheson was described In detail.
Then, on January 1, Pearson followed with an immediate-release
story giving the details of the historic national
security council meeting presided over by President Tru
man, which finally decided to reverse the joint chiefs of
staff and let Formosa go undefended. Pearson's stories
were published two weeks and one week respectively ahead
of Time's.
OIO PAPA'S LITTLE HELPER HURT J
JrS. XfrWStWJ-Sr HIS LITTLE SELF? LISTEN. LARRY,
r2Xi,HiA IF YOU'D STOP 6AWKIHJS AT THAT ,
WRMrp X7 t' ERILYN TAYLOR 6IRL W6 MIGHT A
y&tyhW" SET THIS FENCB FINISHED. SHE t
Ifttt ''rmtcWTm rTI MAV be in the b-io grade,
iMmi m?4M'im 'H IV. but she's brisht enough not J-J
'"'f 1 J ffiljSEiZ. W-iWkTO PAI-L INT0 POST HOLES.y-y-
111 2siS-Ji'r
rv '
I
W - Ml W
An Independent Newspaper Established 1888
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ROBERT LETTS JONES, Assistant Publisher
Published every afternoon except Sunday at 444 Che
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4 Salem, Oregon, Tuesday, January 17, 1950
The Pacific Power Sale
The proposed sale of the common stock of the Pacific
Power and Light comany by the American Power and
Light company to a Wall street investment company is
engineered by Guy C. Myers, a utility broker who has fig
ured in many power sales to Washington PUD's.
Sadgered and discriminated against by the government's
public ownership program and its advocates, the owners
are probably glad to sell out at a good profit. The PUD's
can pay an exhorbitant price, for they are exempt from
state regulation of rates and exempt from taxation and
have the advantage of raising rates to pay interest on their
securities.
Pacific serves Portland and several communities in
northern Oregon and southern Washington. It has some
55,000 customers in Washington, primarily in Walla Walla
and Yakima regions.
Its proposed sale, subject to SEC approval, to a syndi
cate headed by B. J. Van Ingen & Co., New York, was an
nounced January 4. Terms of the sale provide a $10,000,
000 base price with a maximum of $19,500,000, depending
upon sale of certain Pacific properties.
Concerning Myers, Governor Langlie of Washington
gays the SEC described the broker's arrangement as fol
lows: "The purchasing group will pay Myers as compensation for
his services sums contingent ot the properties andor common
stock of Pacific.
"Myers is to be paid 10 percent of the amounts, if any, real
ized by the purchasing group in excess of $10,000,000 (exclud
ing $300,000 in regular annual dividends on Pacific's common
stock) until American receives from the purchasing group the
maximum amount payable under the purchasing agreement.
"Thereafter, if the purchasing group realizes any additional
proceeds, Myers is to be entitled to receive 19 percent of the
next $3,900,000 of any such proceeds and 10 percent of any
amounts in excess of said next $3,900,000 (excluding also in
each of the two latter cases the $300,000 in annual dividends
referred to above.)"
' If the sale goes through, it will be a fine thing for Myers,
but will probably mean higher rates for electricity users,
political instead of expert technical management and a
loss of the biggest taxpayer the state, county and city
has, consequently higher taxation to make up for the loss
of revenue and no gain to anyone but promoters and secur-.
lty holders.
Coal Strike Emergency
President Truman continues to insist that there is no
public emergency caused by the coal strike, although stocks
of coal are so low that the Interstate Commerce Commis
sion has cancelled or reduced train service on many rail
roads and many cities have almost exhausted their fuel
supplies and a blizzard would cause untold suffering and
many deaths.
Although John L. Lewis ordered the miners to resume
the three-day work week, some 74,000 UMW members
are still on strike demanding "no contract, no work" and
the strike threatens to spread over the entire country.
A new feature is the cutting off of all credit for striking
miners at stores operated in coal mine towns by the sub
sidiary of the United States Steel company in western
Pennsylvania, part of the captive mine set-up. A spokes
man explains:
"Since July, bills have gone beyond what would be good busi
ness practice. We've helped the miners over the hump many
times, not only during strikes; But we'va reached a point where
we can't go any further with It."
The company states that miners, with previous good
credit ratings, now owe as much as $1700 to the company
stores.
The unions have demanded that the state take emergency
action for public assistance as miners are "in need right
now with no money and no credit," although the depart
ment of public assistance has been handling from 130 to
140 applications a day and has not the facilities for han
dling more. This in itself is an emergency.
The president claims that the emergency is only spotted
at present and not yet national, but Section 202 of the
Taft-Hartley law covers the present situation:
"Whenever in the opinion of the president of the United States
threatened or actual strike or lockout affcting an entire in
dustry or a substantial part thereof, . . . will, if permitted to
occur or continue, imperil the national health or safety, he may
appoint a board of Inquiry, etc."
The text of the law enumerates prompt successive steps
open to the president before soon applying to the courts
for an injunction against the continuation of the strike or
lockout. But Mr. Truman refuses to act, playing politics
of favoritism toward union labor at the expense of the
general public to keep the administration in power indefi
nitely. Dimes info Dollars
Marion county has caught the cadence of the March of
Dimes which started this week.
Concerned with the polio campaign debt and great need
locally, some are stretching the rhythm of the drive to a
March of Dollars. This anxiety over lack of funds to fight
disease which struck 30 persons in the county last year is
understandable. It creditably reflects the interest and de
sire to meet the new financial needs. But the basis for the
nationwide fight to solve the mystery of polio still remains
the dimes and other small coins collected from the average
man and woman in the communities of the country.
Those small coins, dropped into miniature iron lungs in
strategic places in the county, will mount into dollars so
necessary to offset the fund debt in the county and to build
a reserve to fight the disease this year.
Last year found Marion county fighting its toughest
battle with polio. There were two deaths in Salem alone
from the disease in a year which saw the greatest number
of cases in this city. Greatest progress in meeting the
county-wide threat last year was the purchase of an iron
lung and a portable lung through a drive sponsored by the
Eagles. The lung is kept at Salem Memorial hospital where
a special treatment center is established for the area. Of
funds raised, 50 percent remains in the county for polio
cases and 50 percent goes to the national foundation for
research.
No one can predict accurately how hard the dreaded
polio will strike in the county this year. The best advance
step individuals can take, however, is to put dimes into the
little iron lungs so the polio foundation can find ways to
keep the donors out of the big iron lungs.
The March of Dimes has a beat that reaches into every
household in the county. Pile the dimes into dollars to
strengthen the forces fighting, polio.
POOR MAN'S PHILOSOPHER
Life of General 'Hap' Arnold
Dates from Horse to Atom Bomb
By HAL BOYLE
New York m Gen. "Hap" Arnold, dead at 63, once almost
quit the U. S. army because they wouldn't let him ride a horse.
This is one of many odd quirks in the career of the genial
airman who never fired a gun in anger himself but commanded
the mightiest armada in history the globe-ranging U. S. army
airforce in the
of the years between the wars
who sought a more Important
role for alrpower. His victory
came when the American air
force was permitted to practice
daylight precision bombing
against Germany, which he had
advocated as against area bomb
ing by night.
And his vindication came after
the war when prisoner Herman
Goering, asked by the U.S. stra
tegic bombing survey whether
o ma mi nranlotnn UnrnWnrf rin1
Yet the American airforce of been more effective replied:
today stands as a monument to , . ... .
his pioneer courage aloft and "The precision bombing, be-
his cheerful but diplomatic cause 14 was decisive. Destroyed
toughness in winning a top place iuf could be evacuated but
WASHINGTON MERRY-GO-ROUND
Russ, Hungarian Generals
Plot Attack on Yugoslavia
By DREW PEARSON
Washington A secret huddle of Russian and Hungarian gen
erals plotting an attack on Yugoslavia is the inside reason for the
state department's sudden offer to aid Yugoslavia, If she is
threatened.
American intelligence agents In Vienna and Belgrade picked up
the alarming re- , , . " "
ana nis reiusai to amae Dy tLA
regulations.
For instance, Acheson pointed
out, Spain limits foreign invest
ment in industrial plants to 23
percent and prohibits altogether
WW i
second World
nr
The only;
wound he suf
fered In two
World Wars
he saw combat
action in nei
ther came
when he was
struck by some
shotgun pellets
during a pheas
ant hunt.
I t kz ' m
V, 4 1
port of the Rus
sian military
conference from
the anti-communist
Hungar-
lan nndeig.
ground.
Stalin attach
ed such Impor
tance to the
conference, ac
cording to this
report, that he
sent both his No. 1 aide, Georgl
Malenkov, and Marsal Constan-
J-ffillMIII J V'
II
"We got a little old fire to put out, boys!
any foreign participation in MdcKENZIE'S COLUMN
plain jiiaiiageiiieiu. Also, rianco
freezes profits so as to virtually
prohibit reinvestment In plant
expansion.
Drew Peareon
MURDER ON FORMOSA
During his remarks on For
mosa, Acheson was asked by
Asiatic Expansion Is Part of
Russia's Plan of Red World
tin Rokossowski, who is organiz- Representative Judd of Minne-
Ing the satellite defenses in east
ern Europe.
Chief decision reached at the
conference, according to the un
derground, was to build bases in
the Tatra mountains of Hungary
for firing rockets into Yugoslavia.
Acheson ac-(
cuses Russia of,
for airpower in Washington's
behind-the-scenes military struggles.
destroyed industries were diffi
cult to replace."
Arnold, despite his catchy grin
t,!. i.. and easy-going air, was some-
, times in hot water with his
1. As a young flier Arnold superiors. He wrote in his
neatly zoomed down and plop- mem.irs; Global fission," that
ped a bag of mail in the front President Roosevelt threatened
yard of a postoffice to prove to exile h.m to Guam in 1939
the army could deliver airmail, when Hap was in a fuss with
2. In 1945 he commanded the en Secretary of the Treasury
sota, a vigorous advocate of aid
ing Chiang Kai-Shek, if our "de
sertion" of Chiang had not led
many Chinese to join the com
munist forces.
"I think not," replied Ache-
Rnn. "T think- Thn nannralie.lmi.
lost out because he was strictly d'smembe r i n g
a mints. loarW hii.j Northern Chi-
A few days after this report grasPi or had not the ability to na and being in
was received, U.S. Ambassador put into effect tne socU1 re process of ab-
George V. Allen told reporters forms tnat were needed tQ raise sorbing it into
In Belgrade that Washington is the shocking living standards in he Soviet Un"
ready to help Yugoslavia "pre- china." ion He says
serve her independence and This and the expi0itation of the detachment
sovereignly. ch,na by Chiang and his crook-
So far, the iron-nerved Tito ed war lords left the door wide comPlete in out-,
has taken these reports coolly, open for communist nfflrntnr er Mongolia and'
Ho tnlH American nffimals he he said orlrllna fhof th. ir- almost
By DeWITT MacKENZIE
(OT Foreign Affaire Analrst)
Secretary of State Acheson's blunt statement before the
National Press club in Washington regarding Russian territorial
expansion in the Asiatic theater presents a grim picture to
opponents of communism, but it has the virtue of helping clarify
a muaay situation.
The areas thus far most con
cerned (Manchuria, Outer Mon
golia, Inner Mongolia and Sin
kiang) form a huge solid bloe
whose northern frontier contacts
Miuaiau iciiiLULy Ull UW Way.
Moscow is working methodi
cally so that her expansion
southward into China moves as
a compact mass containing no
non - communist areas. Tho
steamroller thus has Its north-
strategy.
Manchuria of course Is
tha
airforce that opened a new era
of war and peace by dropping
two atom bombs on Japan. It
was a force that had grown to
Morgenthau.
In 1943 he became the first
American airman to win four
star general's rank, and later
2,200,000 men and 70,000 planes, was promoted to five stars.
The story of "Hap's" adult When he retired, he said he was
life parallels the growth of the 8ing to sit under an oak tree
airplane as a chief Instrument and look at white-faced cattle,
of military decision.
After retirement Arnold crltl-
But when he was graduated czed the United Nations as in-
from West Point the big lieuten- effective because it has no pow-
ant he stood six feet, weighed er to enforce decisions. He ex-
185 was so crazy about horses pressed belief that there would
he threatened to quit the army be no Immediate war, but said
if he was assigned to the in- the only thing that would stop
fantry instead of the cavalry. Russjan expansion was the
Naturally, the army aslgned him threat of retaliation from an
to the infantry. airforce mightier than her own.
nap swauowea nis priae ana
lished a defense
mountains.
Al 41,a DnfiMlara AnnforanpA
F)1Ur?rirh HaP Arnold wrote In his mem
oirs, a number of chief British
and American commanders,
stayed in service.
later, in 1911, he was the fourth
man in the army chosen to study
wVSht ' S"-Ar two thought there would be another
months after he took his first w"r . . '
Ho tnlH Amorlran nffifials he ho said orMIno ihat h. 1T. almost Com- acenu.
regards the rumors of imminent mosan people have also been v ,, , . er" side completely orotected
attack as part of Russia's "war victimized by Chiang and his golia f,nd Slnkang province ap- Jt . miehtv ' J. ,nh .
.nH nrorfinta hor,hmon parently are beins processed. . . 8 ra'Snty smart job ol
large-scale "guerrilla" warfare Numerous Formosan natives Well, this column certainly
nrtninr Viinnclatrld 11,1, VB3r IIS. u,Vtn Tahallafl sm.!- 1.1..-). ffATl't r0MO aifainct that
"S"'"' """"" ' . . ". " "B"" V-mails rrmet Imnnrlt l i
ing the hard-bitten communist mistreatment have been execut- cauea atention to this trend per- 1T --.i .-. ..B ,ui m
troops who fought in the Greek ed, while still others of the up- sistently, especially to the ab- rjl? picture- f ere have
mountains. ' per classes, including doctors sorption of the rich and strategic g. """V of 404,428 square
Tito is a master at guerrilla and lawyers, have been put to state of Manchuria. Possession SaSoo ooni, arTn
warfare himself and has estab- death for the "crime of owning of this country gives Russia one thrworid, richest It a,Z?
iih,i a Hofonco lino in th property." Acheson informed of the most dominant positions he world s richest. It has great
the shocked committee. in the Far East. mineral wea tn and vast Indus-
, ... ... trial Possibilities. Strategically
nnF nr rnvt . j. , . it is a Dase of immense strength.
U.S. POLICY ON FRANCO A1"B or Indeed, Secretary Acheson de- Here it should be noted that it
Franco Spain received almost .. He.re is. now. th.e veterans "t dares that Russia's designs on was virtually a part of Russia
as much attention as the burn- ;he American Legion, who have Manchuria are "a single most in the days of the czars before
ing question of what to do about foug?t ur wars m e Past. " ""Portent fact" in the Far East- the Russo-Japanese war.
Formosa when Secretary of are f'ghtin the batIe Peace em picture. . , ,
State Dean Acheson was closeted y collecting toys for the chil- And what is the significance Secretary Acheson holds that
for six action-packed hours with JE" ot these Soviet tactics? The Russia mZt somTday accouni
the house foreign affairs com- a"p" soldiers of answer to that also is clear. It to the "righteous anger of the
mittee last week. ww... . means the Russlan offensive In Chinese people" for trying to
The meeting wa, so secret home of Concord N H Post l" 're than a politi- detach the Manchuria pro-
that Chairman John Kee of West and TegionSir con "? " " aggrestsIn a'm- vinces. He warns that America
Virginia banished his official re- on sav taS fom huw f , -"Tu ? shouldn't embark on "foolish
porter, so that no written record Tn. hl"LT lon of SovIet Socialist republics, adventures" which will obscure
would be made of the proceed- with 4 nnn to nt-ihtn,i v,,r What's new or strange about this fact.
lesson he was a flight instructor.
It is interesting to conjecture
But this was his thought:
"There must not be any more
what would have happened to wars- we must not just arm
Arnold and to American air- 'or defense, but we must be
power if he had won his first stron8 enough to make sure
heart's desire assignment to the there are no more wars,
cavalry. "We should have sent a big
For throughout his career Hap stick into the Munich conference
was aligned with "Billy" Mit- instead of an umbrella. The
chcll and the other army rebels same applies to the future."
Making Eskimos Feel at Home
Vashon, Wash., Jan. 17 U.R) The following sign was ob
served hanging in a restaurant window during the height
of the week-end bli2zard:
"Whale Blubber 50 cents.
Seal Oil 20 cents.
Frozen Fish 25 cents."
The restaurant owner then explained that "with the kind
of weather we're having, I expect some Eskimo trade short
ly." Little Jimmy Comes Home
To His Christmas Presents
Tarenlum, Pa., Jan. IT W! Little Jimmy Pochan has caught
up with Christmas the Christmas that came two weeks ahead
of schedule for him because Santa was afraid Jimmy wouldn't
live until the holiday.
But three days after Santa's visit, Jimmy's mother bundled
him up and took him to New
York's Memorial hospital. There She says':
a million-volt x-ray machine "You wouldn't know him.
treated him for cancer of the He's a different child."
chest, a usually fatal malady. Jimmy says he feels better,
Sunday night Jimmy came too. He wouldn't come back in
back home, happier and health- a sleeping car. He wanted to ride
icr looking than he's been in in the coaches "where I can talk
months. to everybody and see every-
His Christmas toys were wait- thing."
Ing for him. Sunday night George Pochan
Jimmy's far from cured. But drove down to the station to
now, doctors say, he has a greet his returning wife and
chance. At first they feared his son. Jimmy spotted him right
lungs were permeated by can- away.
cer but they say there's a pos- "Daddy! daddy!'" the young
sibility the disease may be con- stcr squealed. A tiny pair of
fined to the walls of his chest arms were tight around Pochan's
cavity. neck much of the way home.
Next month he goes back to Then Jimmy gobbled up a big
New York for a check-up and supper and announced his appe
maybe some more treatment, tite would be just as good at
His mother ii sure he's batter, breakfast.
ings. However, Acheson's ar- the city's children. "Our build- , V u ?g' " pre" That thes'3 flts ln with the
guments on Formosa were simi- ing was covered by insurance f'S"? what has been going on claims of Generalissimo Chiang
lar to those he gave the senate but the toys were not," explain- Eastrn Europe. Kai-shek, who maintains that
the day before, though his de- Post Commander John Sand- Moscow has never concealed the Chinese people will in due
lineation of Spanish policy was erg her light under a bushel. The course rise up against the com-
so complete that it should have Among cash contributions for ODiectives of the world revolu- munists. He pins his hopes to
been presented to the American tot at Tacoma Wash was $10 tion or he spread of commu- hanging on until that reaction
people. from Sgt, William L. Reed, a pa- nism have been made Perfectly develops.
Acheson left no doubts either tient of Madigan general hospi- Plain- The goal is to create a Is that wishful thinking? Per-
about the state department's op- tal Sergeam Reed a combat communist world state one haps, but much strategy is based
position to the Franco dictator- vcteran of the Battle of Bas- world one Red world. on wishful thinking. The fellow
ship. There never can be a real togne, requested that toys pur- ... who wins is the one who does
understanding between the Unit- chased with the money be given So we see Russia in process the best wishful thinking and
ed States and Spain while to children of that war-scarred ot absorbing Chinese territory, follows it up.
Franco stays in power, he said town
and it is time tne spanisn people Xo handle the napkins nd
were waking up to the fact.
As far as he was concerned,
Acheson said, we should con
tinue to withhold full recogni
tion of Spain (we partly recog-
shipping of their toys for Eu
rope, the children of Santa Claus,
Ind., had a tried and trusted
agent St. Nick himself, in the
person of Ray L. Woolfolk, com-
CapitalJournal
nize her now through a charge mander of the Legion's Santa
a aiiaires) until rranco is turn- Claus Post 242 He added thi9
ed out. Acheson frequently re- letter greeting: "A few short
ferred to the Spanish dictator years ag0i many of our members
as "undependable' and irrecon- met y0Ui the children of Europe,
cilable in his contempt for de- Seeing at first hand what war
mocracy. .... does to the innocents, they
The secretary of state added, piedged themselves to do every
however, that if the United Na- thing in their power to prevent
tions ever rescinded its 1946 res- a recurrence of war At this
olution which led most mem- timc, when the Prince of Peace
ber nations to recall their ambas- should prevail over all and good
sadors to the Franco government old st- Nicholas is spreading
the United States could hardly cheer and happiness to the chil
refuse to re-establish an em- dren o the worldi we reaffirm
bassy in Madrid. that pledge. We will endeavor
"But It is not our intention to to place in the hands of some
Initiate such action, reported boy or girI any letters you may
Acheson. "To do so would im- write to Santa Claus Post, in
ply approval of the Franco gov- order that you may have a pen.
ernment. On the other hand, I pal in this country."
think recognition wold come Chester, Pa., collected 20,000
quickly If there was a change of toygl and the whole town Joined
government." ...... in a big parade down the main
He hastened to add that he street to send the shipment off
meant no criticism of the Span- to near-by Philadelphia,
ish people, of whom he had the Harold J. Keating, managing
highest regard, but only of the editor of the Main Line, Pa.,
government leaders who were TimeSi personally dispatched
preventing them from sharing 1i ooO letters, asking a toy
in the progress of European de- apiece to school children of
mocracies. Spain probably loweT Merion township. The
would be getting Marshall plan response: 10,000 tovs so far with
aid right now, but for Franco, a good chance oI 100 pgr, cent
Acheson pointed out. participation.
ne also expinnii-u mm ins
European cooperation adminis
tration had found it virtually
impossible to do business with
Franco because of the restric
tions he placed on American aid
International lite he'd
jft-nlWlliBireS sought for 10 years. It y
VISSSMji hali been stored ,or 25 S
wiiPi'' years only 15 miles a- j
Richland, Wash., an "atomic"
town of 20,000 people (site of
a huge plutonium plant) con
tributed 4,000 toys for Europe's
children,
(Ownfebl um
CejeneM IHI. Inert reM, t.M. Set- . 1 n Ml
Your Ad Will Bring Results Too
TELEPHONE RESULT No. 22406
I)