if' .- Mm i r
Hunters Meet Landowner Secretary of State Dean Ache
ion chats with Blair Richards and Jerry McGrath, riders with
Redland Hunt over the secretary's Maryland estate.
Four Corners Grade Pupils
Present Program at School
Four Corners, March 21 Boyd Hillesland and his sixth grade
students at Lincoln school (Four Corners) gave a program before
the school assembly and the room mothers. The salute to the
Hag was led by Ronald Coulter. Miss Sharley Payne led the as
sembly in singing the "Star Spangled Banner" and the children
in "Under the Spreading Chest-e-
nut Tree and the "Spider" song.
Gordon Harrison was the an
nouncer. The prelude to the play was
the singing of "Chiapanecas" and
Mexican dancing to "La Raspa."
The play was "South of the Bor
der" with those taking part in
Mexican costume. Characters
were Ruth Stryker, Mama Men
doza; Gary Pierpoint, Papa Men
doza; the Mendoza children, Le
ona Arthur and Richard Lukens;
Carlos, Robert Kipper; Ameri
can tourists, Donna Meyer Ma
rilyn Snook, Shirley Thulin,
Henry Mauk. Dewey France.
Supporting cast John Smith,
Darrell Rickman, Larry Rhoads,
Jean Chrisman and Betty Reich-enberger.
Costume Party Held
Mr. and Mrs. Warren Shrake
entertained the Maranatha Sun
day school class of the Calvary
Baptist church at a 7 o'clock
dinner and costume party Dec
orations were in honor of St.
Patrick's day with the guests in
costume from the comic charac
ters. Mr. and Mrs. Shrake wel
comed their guests as "Maggie"
and "Jiggs." Those accepting the
hospitality were Mr. and Mrs.
Sam Randle, Mr. and Mrs. Larry
Wagner, Mr. and Mrs. Floyd
Bird, Mr. and Mrs. Walter Ed
wards, Mr. and Mrs. Willard Pe
derson, Mr. and Mrs. Alvin Coole
and Mrs. Donna Wright.
Leaving for Japan
Pvt. Jack William Cartwright,
who has just finished his basic
training at Fort Ord, Calif., has
arrived home for a two weeks'
leave with his parents, Mr. and
Mrs. W. R. Cartwright. At the
expiration of his leave he will
report at Camp Stoman, Pitts
burgh, Calif. On March 31 he
will sail for Japan for two years'
duty with the artillery occupa
tion force there.
Class Holds Party
A social evening was held
when the Young People's class
of the Four Corners Baptist
church met with their teacher,
Rev. Victor Loucks, and Mrs.
Loucks in the church annex.
Mrs. Roy Thater and Mrs. Cecil
Snook were hostesses for the
evening. Other members of the
class are Mr. and Mrs. George
Weigart, Mr. and Mrs. Vernon
Forest, Mr. and Mrs. C. A. Bar
ney, Mr. and Mrs. Ronald Mc
Donald, Mr. and Mrs. John Al-
yea, Mrs. Jeanette Miller, Leon
ard Ewald, Joyce .Simmons, Roy
Thayer and Cecil Snook.
Modernization
Of Navy Urged
Washington, March 21 VP)
Chairman Vinson (D-Ga) of the
house armed services committee
called today for modernization
of the navy, starting with half
i billion dollars.
He said in a statement that
'the ships and planes we now
have, both afloat and in moth
balls, are ships and planes of
a bygone age."
"Our navy would not be as
useful in the next emergency as
it was the last time it was used
against an enemy."
Vinson introduced a bill for
the construction of 50,000 tons
of modern naval vessels, and for
the conversion of 200,000 tons
of existing ships "to modern na
val vessels."
His bill would authorize an
appropriation of $500,000,000 in
nev money for construction or
conversion. In addition, funds
already appropriated for con
struction or conversion of ves
sels would be available for the
modernization program.
Attending the Fleet Reserve
association's northwest caucus
in Portland over the week-end
were Mr. and Mrs. Edward C
White and Sherrill White.
Eldon France and Oliver
Rickman drove a group of the
sixth grade Gra-Y boys to Port
land Saturday.
Silverton Formally Greets
Spring by Many Offerings
Silverton As a grand finale in treats, regardless of unpleas
ant weather, for the two-day spring opening sponsored by mer
chants of town and civic organizations, was the presentation
of "Penrod and Sam" as a movie film, free to all children of
town at the Palace theater, with two over-flow houses repre
senting around a thousand guests.-
The "then" and "now" win
dow decorative theme was well
carried out and brought out al
most as many surprises as the
annual hobby show.
Stiff Furniture showed a high
topped bed, springs and mattress,
a "commode" and necessary con
tents, together with lighting
facilities of years ago, and the
ultra modern display including
a Silverton manufactured case
for radio and records produced
from the Parton Fixtures; the
most unusual old-timer sewing
contraption was a "sewing bird"
at Weibys along with othei dis
plays of the contrasting ages.
A perfect collection of all
pieces of the bedroom substitute
for the modern bath in beau
tiful design of raised flowers was
it the Elmer Johnson store in a
water pitcher and bowl set, also
in the Johnson window were old
and new fire-arms.
Wedding dresses then and now
were by Opal Roop of the style
shop; baby dresses from 1878
up to th present were marking
the decades in the Grossnickle
Lily's Shoppe; Sprouse Reitz
showed a young woman in
bustle, pantaloon, high topped
shoes, handbag mitts, and a com
plete costume all dressed for a
walk with the escort's derby
hat, cane, and a convenient spit
oon under the table.
Electric stores showedfirstand
last styles in appliances. Butter
mixers, ehruns and bowls, spin
ning wheels and modern matches
in Pennevs. Every store had
some attraction in display and
all places of business offered a
sacrificial sale bargain. Free
narkinc was made possible
through donations of merchants
with each meter "hooaea wun
a paper bag bearing an adveris
ing suggestion.
The Junior Woman's club plan
a mid-summer style show instead
of an annual affair of the past
Aurora Boy Scout
Benefit Scheduled
Aurora Announcement of a
special event, planned as a bene
fit for both sponsoring groups
was made by Mrs. William Jen
sen, president of the Presbyteri
an Ladies Aid, and John Kraus
Jr., scoutmaster of the Aurora
Boy Scouts, Friday evening,
March 24, in the Knights of Py
thias hall in Aurora.
Scenic pictures in color, made
and shown by Carl R. Moline,
Boy Scout leader and 1948
"senior first citizen" of Oregon
City, will be a feature of the
pie social.
Moline, who has been active
in scouting activities about 30
years, has traveled throughout
the Pacific northwest, taking
color slides of its scenic beauties.
William (Bill) Jensen, a sen
ior of Canby Union high school
and former member of Mr. Mo-
line's troop 220 in Oregon City,
will introduce his former scout
master at the benefit event.
Amity Church Circle '
Guest Larson's Home
Amity Mrs. J. A. Larson
was hostess for Circle No. 3,
WSCS of the Methodist church.
Mrs. C. S. Holloway, chairman
of the group, conducted the de-
votionals and gave the lesson
"Women of the Bible."
Mrs. Eugene Clark will be hos
tess for this group April 19, and
Mrs. Minnie Snyder will lead
the devotion. Mrs. Larson served
refreshments during tbe social
hour.
A University of Missouri
study found that cows produce
the most milk 'in temperatures
of around 50 degrees.
MONEY FOR HOME-OWNERS
IHuorciTO Dnfnfn
Interest-Rate Wrangle Arisesr . ,. ,
Over Middle-Income HousinaM inuitaiea
By CLARKE BEACH
Washington How much interest should you pay when you
borrow money to buy a home? How much should you expect to
receive if you lend money to a home-owner?
These are two sides of a tough economic question, as the mem
bers of the senate learned wnen they wrangled over the pro
posed middle-income housing
bill. Much of the debate hinged
on this point.
Proponents of the bill said they
had found a way to provide
cheaper housing for the middle-
income group. It wouldn t in
volve government subsidy they
said it would all be done
through private enterprise.
The most striking feature of
the plan was the method of re
ducing financing charges from
the usual 4 per cent charged
on loans insured by the Federal
Housing Administration (FHA),
to about 3'4 per cent.
...
A new government corporation
would lend money to owners of
cooperative housing projects at
this rate. The corporation would
obtain the money by borrowing
from private sources. Jt would
get the money at a cheap rate,
possibly about 2V4 per cent.
That's the main reason why it
could lend so cheaply.
But why could the corpora
tion get lenders to invest money
at such a low rate? Because, say
backers of the plan: (1) Like
FHA mortgages, the loans would
be insured by the government.
The lender couldn't possibly lose
money as long as the U S. gov
ernment credit was good.
(2) The lenders would not be
purchasing mortgages; they
would be buying debentures.
FHA mortgages, or any other
mortgages, cost the lender a con
siderable sum in service charges.
The Senate Banking Committee
was told by various insurance
companies that when they re
ceived an interest rate of i'k
per cent from mortgages they
only cleared a net of about 3
per cent. The difference was
made up by administrative
costs and the cost of procuring
and servicing the loans Interest
from debentures could be col
lected at practically no cost.
This lowering of interest rates
would undermine the whole
home mortgage credit field in
the opinion of opponents of the
bill.
What would be the effect on
persons now paying 4 W per cent
particularly the great multi
tude of persons who borrowed
under the FHA and Veterans
Administration plans? They
would demand that Congress
find a way to reduce their inter
est payments, say opponents.
Then would Congress be forced
to revise the whole program of
home financing through govern
ment help, probably with heavy
losses to the government?
What of the effect on banks,
insurance companies and sav
ings and loan associations now
charging the higher rate of in
terest? Already the government has
effectively reduced the income
from mortgage interest on which
such institutions depend Before
FHA was created persons who
borrowed on their homes paid
from 6 to 7 per cent interest.
When FHA was set up, with its
4 t4 per cent interest rate it was
arranged that persons who had
been paying the old. higher rates
of interest on existing homes
could refinance through FHA.
Then all mortgage interest rates
tended to go down to the FHA
level.
"But what is so sacred about a
4 per cent interest rate?" ask
ed Senator Douglas (D , 111.)
Might it not be in the public
Beautiful Skating Champion
Deserts Father, Czech Reds
London, March 21 U.R Beautiful Aja Vrzanova, the world's
champion woman amateur figure skater and daughter of an im
portant Czechoslovakian communist government official, joined
the parade of political exiles from behind the iron curtain today.
The tall, 18-year-old brown-eyed successor to Canada's Barbara
Ann Scott as women's interna
tional skating titleholder an
nounced she would not return
to her homeland as long as her
father and other communist offi
cials run the country.
"I have been dreaming of this
freedom for two years, ever
since I have been traveling in
Flees Reds Aja Vrzanova
(above), world's champion
woman amateur figure skater
and daughter of an important
Czechoslovakian com munist
government official, has join
ed the host of political exiles
in London, England, from be
hind the iron curtain. (Acme
Telephoto)
Mclver Attends Meet
Portland, March 21 VP) Milo
K. Mclver, recently appointed to
the state highway commission,
Monday attended his first com
mission meeting.
Mclver will not officially join
the body until April 1, when
Chairman T. H. Banfield will
leave office, but he attended to
day to get acquainted with proceedings.
western Europe with the Czech
team," Aja said. "But I had to
bide my time until I was 18,
which made me 'of age' in my
country.
Miss Vrzanova, who hones
dventually to go to the United
States and possibly follow in the
footsteps of Norway's Sonj;
Heme, was to have returned to
Prague Saturday. Her father is
an official of the finance minis
try.
Instead she obtained permis
sion of the British home office to
remain in England, as many
other iron curtain country sports
figures have done.
She is the third famous skater
to receive asylum here. The
others were Edi Kiraly, Hungar
ian skating titleholder and run-
nerup to American Dick Button
in the world championships, and
Irina Nekolova, Czech woman
skater.
Jaroslav Drobny, the Czech
tennis star, also became a poli
tical exile in Britain after last
year's Wimbledon tourney and
three members of the Czech
hockey team "disappeared" in
Stockholm and Paris recently.
Silverton Visitors at "the F.
M. Powell home Sunday from
Independence were the family
of their son, Mr. and Mrs. Mar
shall Powell and Anne and John.
Washington, March 21 VP)
Another oversize potato crop this
year was indicated today.
The agriculture department
said a survey of farmers' 1950
crop plans showed that the po
tato acreage may be considerably
larger than the government had
recommended under a program
designed to prevent production
of too large a crop.
A crop of 389,000,000 bushels
is possible, the department said,
on the prospective acreage. The
government had recommended a
crop of only 335,000,000 bushels,
Potato surpluses during the
past six years have cost the gov
ernment nearly $500,000,000 in
price support operations.
Today's report also indicated
that farmers will not reduce
corn plantings as much as the
department had recommended
under an acreage allotment program.
Wheat farmers, on the other
hand, indicate that they plan to
plant well within the govern
ment's program designed to pre
vent new surpluses of the bread
grain.
The department said the sur
vey indicated that farmers will
plant more acres to spring crops
than a year ago.
interest to replace it with a col
lective debenture, guaranteed?
With a 3Vi per cent interest
rate?"
"If that is good, why isn't it
better to have no interest at all?
Inquired Senator Fulbright (D.
Ark.).
Question of Freezing Given
Study by 2 Airport Groups
Whether construction in the Salem airport zoning area should
be "frozen" until a policy is adopted by the new zoning organiza
tion is one of the problems facing the two regulatory groups
recently appointed.
Whether freezing is legal is being investigated
The 10 men comprising the'
two groups met Monday night
in the office of Robert F White
and completed organization,
with the election of Wallace R.
Tower of the Salem Air Service
as chairman of the zoning com
mission. Roy Houck had previ
ously been elected chairman of
the joint city-county zoning
board.
The county-city board and the
zoning commission will work to
gether in about the same way
that the city council and the city
planning and zoning commission
do. The commission, which was
appointed by the board, will set
up the plans and make recom
mendations, which will be pass
ed on finally by the joint board.
On the joint board Hedda
Swart and Don Cannon repre
sent the county, and Robert F.
White and Dr. L. P. Campbell
the city. These four selected
Houck as the fifth man and he
Capital Journal, Salem, Ore., Tuesday, March 21, 1950 17
Man in Charge of Secret Work
Prior to Loyalty Clearance
Washington, March 21 VP) The story of a man who super
vised secret workers ir. the government's bureau of standards for
15 months before he himself received loyalty clearance was dis
closed yesterday.
The story was related to members of a house appropriations sub
committee by bureau officials.
was made chairman.
On the zoning commission
are Wallace Tower, Salem Air
Service; W. C. Hill engineer for
the state board of aeronautics
Ralph Thede merchant; Peter
Geiser, real estate man; and
Keene Wain, farmer in the air
port area. Tower was elected
chairman by his five colleagues.
Of the 10 men in the two
groups Houck Dr. Campbell,
White, Hill, Thede, Tower and
Geiser are licensed pilots.
At the meeting Monday night
maps were studied showing the
general zones on which safety
and traffic conditions at all air
ports are based. In the center
is the airport property zone,
which at the Salem airport has
a diameter of 14,000 feet. Next
is the airport hazard zone, and
at its outer edges permitted
construction begins to "cone"
outward and upward.
Dr. Edward U. Condon head
of the bureau, told the lawmak
ers the agency knew the facts
in the case all along. He said the
security investigation of the un
identified worker took much
longer than was necessary, and
he hinted that "improper alle
gations" were made against the
man and were later disproved.
Until he finally received clear
ance last December, the man
couldn't even enter the restricted
areas he supervised unless he
took along one of his own men
who already had been checked.
Condon himself once was call
ed one of the weakest links in
the U.S. atomic security, by the
house un-American activities
committee. His repeated demands
for a chance to deny that charge
in person never were granted.
Some parts of the appropria
tions hearings dealing with the
man who waited 15 months for
clearance were held off the
record, leaving gaps in the re
port issued yesterday.
But at one point, subcommit
tee Chairman Rooney (D. N. Y.)
said it was a "very, very seri
ous thing to charge a man with
supervision of activities in re
stricted areas and then take 15
months before he is given secur
ity clearance.
Following an off-the-record
discussion, Condon gave the
bureau s position this way:
"We are pretty familiar with
the facts in this matter and al
though we did not have the fin
al responsibility in regard to
clearance we felt that more
harm would be done than good
by taking any drastic action, and
for that we take full responsi
bility.'.' he added:
"The most difficult question
we have to face is the question of
decent, humane consideration of
people against whom improper
allegations have been made
which are not substantiated on
full investigation."
Condon said the government
security program, while neces
sary, "has been used more for
malicious slander and wrecking
of characters than anything I
know of."
The navy was the agency
which had the job of clearance
the supervision It took the case
in September, 1948, and finally
granted clearance in December,
1949.
The published report did not
name the supervisor.
Ft. Columbia Picked
Washington, March 21 U,R
Fort Columbia at the mouth of
the Columbia river in Wash
ington state, is to be turned
over to the state as an historic
monument, the general services
administration announced today.
The transfer has been approved
by the national park service
mm
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