THE WEATHER HERE
CLOUDY WITH occasional snow
flurries tonight and Saturday.
Slightly cooler. Low tonight,
20; high Saturday, 32.
Maximum yesterday, 40: minimum la
day, 25. Total 24 -hour precipitation: .83 j
(or month: 11.25; normal, 4.M. Seaion
precipitation, 26.24; normal, 21.93. River
helfht, 12.2 feet. (Report by U.S. Weath
er Bureau.)
C apital
HOME
EDITION
IT
62nd Year, No. 23
Entered u tKond class
matter at Salem, Oregon
Salem, Oregon, Friday, January 27, 19L
.3'
Price 5c
Jon
Heaviest Snow
Of Season Falls
On Salem Area
More Snow and
Perhaps Rain with
Freeze to Follow
By MARIAN LOWRY FISCHER
A. Heaviest snow in one fall to
date in the current winter siege
covered Salem early Friday
morning, and more of it drifted
down pretty steadily throughout
the forenoon.
More snow flurries and colder
temperatures are the order for
j- tonight and Saturday, reports the
M local weather bureau. The Port
land mid-morning forecast, how
ever, stated the snow was ex
pected to switch to rain today
with a freeze to follow tonight.
The situation at noon here,
however, appeared to be little
changed snow and cold.,
Snow 24 Out of 27 Days
A total of 3.4 inches of snow
piled up in the city areas in a
6-hour period starting at 4:45
a.m. Earlier in the evening and
night a goodly amount of mixed
rain and snow came down, the
snow coming as temperatures
dropped. Minimum here this
morning was 25 degrees. A to
tal of .83 of an inch of precipi
tation was measured here in the
24-hour period ending at 10:30
a.m. Friday, bringing the
month's total to date to 11.25
inches against a normal of 4.63
inches for the period.
Concluded on Page S, Column 7)
Chains Needed
All Highways
Snow covered most Oregon
highways today and the state
highway commission advised
motorists to use chains.
The Coast highway was re
opened this morning to light,
one-way traffic after a slide 13
miles south of Port Orford was
partly cleared.
The Columbia River highway
remained closed between Hood
River and Cascade Locks, and
the Siuslaw highway was closed
eight miles east of Florence.
The North and South Santi
am highways were blocked by a
snowslide this afternoon at Hogg
Roch, at the summit of the Cas
cade mountains.
The 9 a.m. road report:
Government Camp Snowing
lightly, packed snow, plowing,
carry chains. 16 inches new
snow, 132 inches roadside snow.
Columbia River highway
Still closed between Hood Riv
er and Cascade Locks.
The Dalles, Madras, Ochoco,
Redmond, Bend Snowing hard,
packed snow, plowing, chains
required. 3 to 6 inches of new
snow except on Ochoco, where
there is 20 inches.
Santiam Pass Snowing hard,
packed snow, plowing, chains
required. 34 inches new snow,
150 inches roadside snow.
JT Willamette Pass Snowing
hard, packed snow, plowing,
chains required. 10 inches new
snow, 130 inches roadside snow.
Grand Ronde 4 inches new
snow. 12 inches at Niagara, 2
inches at Stayton, 9 inches at
Silver Creek falls.
Cold Wave Hits
East and South
(Br tht Associated Press)
A sudden drop in tempera
tures which already has chilled
the midwest and Great Lakes
region was moving in on most
of the east and south today.
And on the west coast, citrus
growers had their smudge pots
going in an effort to avert fur
ther damage to oranges and
lemons.
Heavy rains at Cincinnati
were expected to add to the
seriousness of the flood situa
tion along the Ohio river. A. W
Walstrom, meterologist at the
Cincinnati weather bureau,
warned that serious flood situa
tions are likely downstream
from there.
A blanket of cold air from the
chilled midwest spread across
the Ohio river valley and push
ed eastward toward the Atlantic
seaboard. Some of the cold air
was expected to dip into the gulf
coast and send temperatures
from their lofty summer read
ings back to near seasonal levels.
But the mercury was at a bit
ing 30 below zero in North Da
kota and between 20 and 30 be
low over that state and Minne
sota during tht night
Coates Given
Until
Monday
To Find Site
FHA Forces Action on
Cancellation of
Apartment Project
The Federal Housing Adminis
tration gives Robert Coates of
Portland only until Monday to
find another location for his ap
artment house project in Salem.
If he hasn t the new location
by that time Coates feels he will
be forced to go ahead with the
project at 555 North Summer
street where he has FHA approv
al and a city permit.
Coates' Summer street project
is within the proposed capitol
zone, and in one of the blocks
that the state capitol planning
commission has recommended
that the state purchase for fu
ture capitol zone extension. For
that reason the location of an
apartment house is objected to
by state authorities.
Seeks Another Lot
Coates is willing to build on
another lot, and tried to trans
fer the FHA commitment to a
lot he owns in the Hollywood
district. FHA refused to approve
the transfer, and insists that he
protect his investment at 555
North Summer.
Included in the investment is
about $13,000 that he paid for
the 66 by 165 foot lot, plus arch-
necht's fees of $15,000 and some
other costs. The state has made
an appraisal of the market value
of the property since the pres
ent controversy developed, but
the state board of control re
fuses to divulge the appraisal
figure, and no move has been
made by the state to buy the
lot.
Reasonable Price
As a substitute that would get
FHA approval he needs a lot
of about the same size that can
be bought at a reasonable price.
All lots that have been shown
him so far have been priced
far beyond a reasonable figure,
according to Coates. ,
Any property owner who can
make Coates a reasonable offer
of available property of comp
arable size to the Summer street
location would be in the posi
tion of offering a favor to
Coates, the city of Salem and
the state of Oregon.
Coates" plans for the Summer
street building and his permit
from the city came ahead of an
ordinance bill now pending in
council which would exclude all
construction except residences
from the district and would bar
apartment houses.
Bridge Approval
Expected Soon
Washington, Jan. 27 () A
favorable decision is expected
next week on Oregon's applica
tion to build a highway bridge
across the Willamette river at
Salem, an aide to Senator Cor
don (R-Ore.) said today.
The state's application for ap
proval by the army engineers is
being processed, the aide said.
It has been approved by the
district engineer.
U.S. 054 Transport with
42 Aboard Lost in Yukon
Edmonton, Alta., Jan. 27 (IP)
force C-54 transport was missing in the Yukon wilderness today
with 42 persons.
Elmendorf air base at Anchorage, Alaska, reported the four-
engine plane carried a mother
and a crew of eight. The identi
ty of the mother and child wasi
not disclosed, but they were be
lieved to be dependents of a
member of the army or air
force.
The plane took off from An
chorage for Great Falls, Mont,
yesterday.
A report of flares along the
Alaska highway provided a slim
thread of hope in the search.
The Royal Canadian air force
reported the last report from
the plane was over Snag, Yukon
Territory, at 5:09 p.m. (CST)
last night. Snag is about 20
miles from the Alaska boundary.
An Elmendorf base spokes
man later said, however, that
the C-54 reported in to the big
White Horse air base. It is
about 300 miles southeast of
Snag.
Elmendorf authorities said
the search is being concentrated
between Whitehorse and Fort
Nelson, B. C. Fort Nelson is 600
miles farther south on the Al
jr ' f - h . i p rS- 1
( c c 'g1
M u
1 J G
SEC Rejects
Pacific Bids
Washington, Jan. 27 WV-The
securities and exchange commis
sion today rejected two propos
als to buy control of the $77,
000,000 Pacific Power and Light
company of Portland, Ore.
The agency disapproved bids
submitted by both B. J. Van
Ingen and Co., Inc., and Allen
and company to buy 500,000
shares of the company's common
stock.
SEC based its action on the
grounds that American Power
and Light Co., which now con
trols the Portland utility, did
not "maintain competitive con-
ditons" in negotiating for the
stock's sale.
The commission ruled, how
ever, that it will leave the way
open for a negotiated sale of
the securities if "competitive
conditions" are maintained in
dealing with interested groups
in the future.
"Under the circumstances
here presented, we have con
cluded that an adequate show
ing has been made to justify an
exemption from our competitive
bidding requirements as to the
sale of Pacific stock by Ameri-
n," SEC's decision stated.
The commission found, how
ever, that it was "unable to ap
prove either of the proposals
now before us because of Amer
icans' failure to maintain com
petitive conditions in the nego
tiations for the sale of the stock
as required by the holding com
pany act."
American Power has asked
the commisison to approve a
contract signed with the Van
Ingen syndicate to sell the Pa
cific Power stock for $14,500,
000 cash and proceeds from the
sale of certain Pacific Power
properties which could bring the
purchase price to $19,500,000.
The bid submitted by the Al
len group was for $15,000,000
cash and was contingent on
SEC's rejection of the Van Ingen
offer.
A homeward-bound U. S. air
and child, 32 military personnel
- 3
aska highway flight route.
More than a dozen Ameri
can and Canadian planes were
reported in the search today,
with others standing by or pre
paring to take off.
An officer flying to Alaska
reported the flares near Watson
Lake, which is south of White
horse near the British Colum
bia boundary. The Anchorage
basra said he told of circling and
dropping his own flares and re
ceiving an answering flare
Search officials at Anchorage
indicated they were not dis
counting the possibility that the
flares might be from a truck
connected with the current mili
tary maneuvers in the Yukon.
" e plane, bound back for
the states with a full passenger
load after a routine training
flight north, never reported any
trouble.
The plane is from an Eighth
Air Force squadron at Biggs
aii fores.
Sixth Army Commander Visits Salem visitor Friday was
the commander of the Sixth Army, Lt. Gen. Albert C. Wede
Meyer (second from right) who formerly commanded U. S.
forces in China and was ordered by President Truman in 1947
to prepare a report on China and Korea. With the general,
from left to right, are Capt. R. W. Berry, USN, Gen. Wede
meyer's naval aide; Maj. Gen. Thomas E. Rilea, Oregon's
adjutant general; Gen. Wedemeyer; and Brig. Gen Robert A.
McClure, commander of the northern military subarea.
Sixth Army Chief Talks
On China and the Chinese
By MARGARET MAGEE
China her politics and her future.
That concerns policy making decisions and Lt. Gen. Albert C.
Wedemeyer, Sixth Army commander, here on an inspection trip,
does not believe that military brass should be involved in those
Adm. Sherman
. Washington, Jan. 27 CP) Adm
Forrest P. Sherman was sworn
in today as chief of navy opera
tions and given a documented
commission to show his legal
rights to the job.
Sherman has been serving in
the navy's top post since the
ouster of Adm. Louis Denfeld
more than two months ago. But
his formal induction into office
has been delayed by a congres
sional row over Denfeld's dis
missal. The swearing-in ceremony was
held in the office of Navy Sec
retary Matthews, who was
roundly criticized on Capitol
Hill for firing Denfeld after the
admiral had protested Pentagon
policies which he said were crip
pling the navy.
One of the big issues in the
controversy was whether Den
feld had been given a legal com
mission for a second term before
his ouster. Matthews insisted
that the commission Denfeld re
ceived had not been "officially
issued."
Apparently for that reason.
high defense officials and oth
ers at today's ceremony appear
ed to pay particular attention to
the two-foot square document
commissioning Sherman as na
vy chief.
And in obvious reference to
the Denfeld squabble, Matthews
told the gathering "there are
many things that might be said
that might reflect the emotions
of some of us."
Bail Raised for
Accused Burglars
The doors of the Marion coun
ty jail were clamped a little
tighter for the two men and a
woman accused of a scries of Sa
lem and Willamette valley bur
glaries and forgeries when their
total bail was raised to $24,000.
The increase resulted from
new warrants, one for each of
the men from Washington coun
ty and from Woodburn. David
R. Cook and Harold B. Lancelle
were held in lieu of $10,500 bail
each while Mrs. Jean L. Cook
was held in leu of $3,000 bail.
With both parents in jail, con
cern for the Cook's three chil
dren was answered by various
authorities with the statement
that other members of their
family were caring for them at
home.
Independence School Closed
Independence, Jan. 27 Inde.
pendence high school was clos
ed today because of snow.
Whether it will be closed longer
than this week-end depends on
weather conditions between now
and Monday.
"decisions.
But, just ask the tall prema
maturely grey gentleman with
the three stars about China and
its people and he can tell plenty
of stories.
This man who made the sur
vey of China and Korea for
Truman in 1947 has seen much
of that country. He can talk in
timately of Chiang Kai-Shek for
Wedemeyer not only served as
deputy chief of staff for the
southeast Asia command and
commander of the U. S. forces
the China theater, but was
also chief of staff to the General
issimo.
Admires Chinese Peasants
What of the people of China
and of the Generalissimo?
Wedemeyer's first remark was
"I have a great admiration for
the peasants of China."
This was followed by the same
statement about Generalissimo
Chiang Kai-Shek then he com
mented, "I don't believe that any
Occidental was more closely as
sociated with him than I was as
his chief of staff. We had dif
ference of opinion on what
should be done but they were
always resolved with friendly
aamonmon. ' 1
(Concluded on Page 5, Column 5)
Agents Crack
Counterfeit Ring
New York, Jan. 27 W) Se
cret service agents, posing as
traders In the bogus-monoy
market, cracked a counterfeit
ring today, and seized $200,000
in pnony bills.
Four men were arrested last
night and today after their op
erations were traced from Los
Angeles to New York,' where
they allegedly planned to put
the fake money in circulation
U. S. Secret Service men, who
had pretended to be prospective
buyers of the bogus money, told
of outsmarting three of the sus
pects who tried to pass off
$200,000 worth of counterfeit
bills as $300,000 worth.
The three claimed the larger
amount was in two suitcases
and sought to sell the faked $10
and $20 bills for $60,000, the
agents said. The purchase price
for the actual amount of fake
bills at 20 cents on the dollar
would have been $40,000.
Midway in the negotiations,
the Secret Service men and city
police began their roundup, con
fiscating the two suitcases of
counterfeits in a well-furnished
Queens apartment.
The trap, set with the aid of
city police, followed a two-day
investigation
The prisoners were booked as
Anthony Chiarella, 33, Manhat
tan hotel clerk; Vincent Palmi
sano, 35, Brooklyn salesman;
Anthony Pietaraniello, 36, Man
hattan butcher, and Joseph Nar-
done, 49, Manhattan taxicab
driver.
Coal Operators
To Confer with
John L. Lewis
Senate Pigeon-Holes
Resolution Calling
For Truman Action
Washington, Jan. 27 W)
Northern and western soft coal
operators today agreed to talk
with John L. Lewis about a
mining contract next Wednes
day but suggested 2 p.m. (EST)
as the hour.
Lewis had proposed renewal
of contract negotiations next
Wednesday at 10 a.m. the
same hour when the United
Mine Workers are due in court
to answer a petition of General
Counsel Robert N. Denham of
the National Labor Relations
board.
Denham contends that Lewis
has not been bargaining in good
faith and has asked the court
to order an end to production-
stopping tactics on grounds they
are "unfair ' labor practices.
Only Hour Changed
Frank Amos, chairman of the
Northwest Negotiationg com
mittee, wired Lewis of his ac
ceptance of the proposal for
talks Wednesday without qual
ification except to change the
hour of the proposed session.
At the capitol, meantime, the
senate labor committee pigeon
holed a resolution by eight re
publican senators asking that
President Truman invoke the
Taft-Hartley act to restore full
coal production.
A motion to postpone action
indefinitely was approved 6-5
Senator Aiken (R-Vt.), who
was on the losing side, said the
decision amounted to killing the
resolution.
'Conoludcd on Page 5, Column 6)
More Laid Off
By Auto Strike
Detroit, Jan. 27 (IP) The
Chrysler pension strike, with
more than 100,000 auto workers
off the job, moved quietly into
its third day today.
For the time being government
mediators took the chief roles.
There was no prospect of
peace negotiations before next
week, however, as the new year's
first major walkout of the indus
try began cutting into produc
tion. The company turns out be
tween 6,000 and 7,000 Chrysler,
Plymouth, De Soto and Dodge
cars daily.
Peace prevailed on the limited
picket lines of the striking CIO
United Auto Workers, 85,000 of
whom quit in Chrysler plants
Wednesday.
Another 23,000 were laid off
in the car body plants of the
Briggs Manufacturing Co., sup
plier for Chrysler.
Neither the company nor the
union made any attempt on its
own to reopen negotiations.
State and federal mediators,
however, worked behind the
scenes. They said they hoped to
bring the company and union to
gether for talks next week. .
As a watchful waiting period
progressed, the union's 25-man
international executive board
studied the situation. The board
was in session here.
Compromise Overtime
Pay for State Employes
By JAMES D. OLSON
With one member of the state civil service board snowbound
at Hood River and another out of the state, the scheduled meeting
slated Friday was postponed for the second time.
However, James M. Clinton, acting director of civil service and
Harry Dorman, state budget director, announced that a com
promise had been drawn up for-
overtime pay for state employes!
paid $300 or less. The compro
mise must be approved by the
commission.
Heretofore, overtime pay was
limited to state employes paid
$280 a month or less. This rul
ing was protested by State Tax
Commissioner Ray Smith, who
contended that his auditors both
in the Salem and Portland tax
offices, as well as in the field,
should be paid for work per
formed on Saturdays
Smith held that the extra time
was necessary in order to com
plete auditing of 1946 unpaid
tax returns, which become out
lawed at the end of the present
year.
Clinton said Friday that un
der the plan drawn up, to which
Gasperi Forms
Sixth Coalition
Italian Cabinet
Rome, Jan. 27 (IP) Italy to
day had her sixth coalition gov
ernment since 1945. The cabinet,
excluding the communists and
pro-communists, was accepted
by President Luigi Einaudi.
Premier Alcide De Gasperi,
leader of the dominant Christian
democrat party, presented the
cabinet list to the president de
spite some last minute difficul
ties which might call for minor
revisions later.
The 68-year-old premier, who
also headed the last five gov
ernments, won the signature of
the president on a cabinet list
in which the Christian demo
crats hold 13 portfolios, the an-
ti-communist right wing social
ists, three, and the republicans,
two.
Ready to Start
Berlin Airlift
Boston, Jan. 27 VP) John J.
McCloy, U. S. high commission
er for Germany, says that if the
Russians impose a complete
blockade of Berlin the airlift will
be started again.
McCloy made the statement to
newsmen last night after being
informed that Soviet guards
were tightening their squeeze on
trucks moving in both directions
between Berlin and western Ger
many.
He said the Soviet's action ap
peared to be "more in the nature
of a harassment" as "part of a
general effort of the communists
to twist your arm."
"They seem to think," he said
"only of impeding the recovery
of Germany."
McCloy came here to address
the National Council of World
Affairs.
He told the council that al
though the denazification proc
ess may leave "much to be de
sired," former nazl followers
should not be excluded from nor
mal German community life,
He said "the time has come
to permit these so-called little
nazis to demonstrate their loy
alty to the new Germany."
They should be judged, he add
ed, on that basis and not on past
weakness and misdeeds. '
Oregon Strike
Awaits Vote
If a general strike of telephone
workers should be called, as
threatened in the east, it is pos
sible that Oregon would not be
involved.
It would depend on the result
of a state-wide vote of the Tele
phone Workers' union, which is
a CIO organization. Each local
would vote on the question
whether to strike or not to
strike. The entire vote in the
state would be totaled and the
result would govern all locals.
Should Oregon phone workers
vote against the strike the state
would have telephone service
locally and within its borders,
but long distance service to
states where strike conditions
prevail would be restricted.
'I wouldn t venture a guess
as to how the Oregon vote
would go," said Gene M. Mc-
Cann, member of the executive
board of the Salem local.
Smith also protests, only five
supervisory employes in the tax
departments, with salaries rang
ing from $350 to $400 a month,
would be deprived of overtime
payment in cash and be required
to take days off to compensate
for the extra hours put in be
yond 40 hours
The auditors of the tax de
partment were not brought un
der civil service until last July
1, the 1947 legislature having
exempted these employes, be
cause shortage of qualified aud
itors was said to have been
handicapping the work of the
department The exemption ex
pired on July 1, 1949.
If the commission approves
the compromise the extra over
time pay will be retroactive,
Clinton said. I
Pad Provides
American Arms
To West Europe
U.S. to Supply Eight
Atlantic Pact Allies
$1 Billion Weapons
Washington, Jan. 27 (U.R) The
United States and eight Atlan
tic Pact allies today signed for
mal mutual aid agreements pro
viding for rush delivery of $1,-
000,000,000 of American arms
to free western Europe within
the next few months.
In return, the eight nations
getting the free weapons prom
ised to use them to prepare their
defense against a possible Soviet
attack. They also promised to
help arm each other and to give
the United States what bases and
strategic materials they can
without endangering their own
economy.
The agreements, a supplement
to the Atlantic Pact, bound the
United States into the closest
peacetime alliance in Its history.
Signed by Acheson
Secretary of State Dean G.
Acheson signed the separate
agreement for the United States
in ceremonies at the state de
partment auditorium. Top dip
lomats signed for the European
countries Great Britain,
France, Italy, Belgium, Holland,
Luxembourg, Denmark and Nor
way. British Ambassador Sir Oli
ver Franks signed the British
pact at his embassy several
hours before the others and took
off immediately for London for
consultations with Foreign Sec
retary Ernest Bevin. The oth
ers signed in a group.
(Concluded on Page 5, Column 8)
France Urged
On Saar Lease
Washington, Jan. 27 () Tha
United States was reported to
day to be urging France to mod
ify its proposal for leasing the
Saar coal mines, in order to head
off the danger of a political cris
is in western Europe.
The main American sugges
tion is said to be that if the
French government insists on
going ahead, it should make the
contract subject to future Ger
man peace treaty provisions gov
erning the final disposition of
the Saar land.
The issue has grown to in
clude hot French and German
political questions over the ev
entual fate of that Franco-German
border area.
American officials said today
that unless the Bonn and Paris
governments can resolve the
problem in friendly fashion all
the plans for western European
unity will be gravely endanger
ed.
American diplomats in both
Bonn and Paris have been work
ing to ease the situation. Stato
department officials have re
viewed it In detail with John
McCloy, U. S. high commission
er for Germany.
The Saar has been a sore point
in French-German relations for
more than a century The pres
ent argument arose over a re
cent proposal of the French to
lease the coal mines for 50 years.
Soviet Sanctions
New Indonesia
Jakarta (Batavia), U.S.I., Jan.
27 VP) Harassed by guerrilla
rebellion, officials of the young
United States of Indonesia took
heart and pleasure today from
the Soviet Union's surprise re
cognition of their fledgling re
gime. They saw the Russian action
as strange and unexpected am
munition in the U.S.I, govern
ment's fight against Indonesian
Communism.
They also saw it as an un
expected, but welcome, lever
to use in seeking maximum fi
nancial aid from the United
States.
Russia's sudden acceptance of
Premier Mohamed Hatta's gov
ernment cut the ground away
from the propaganda of the In
donesian Communists. They had
been echoing the earlier Mos
cow line that Hatta ana nis
ministers were a puppet group,
obligated to and dependent on
the U.S. because of the strong
role the Americans played in
independence negotiations.
Many Indonesians feel the U.
S. state department is Interest
ed in the infant nation chiefly
as a buffer against communism.