apiial
THE WEATHER.
GENERALLY FAIR and con
tinued mild tonight and Friday,
with early morning fog in val
leys. Low tonight, 40; high Fri
day, 55.
3 owmm
yon
EDITION
62nd Year, No. 303
Entered u second elui
matter At Salem, Oregon
Salem, Oregon, Thurv
ember 21, 1950
(24 Pages)
Price 5c
r mm j
Bfflr f&
4-Lane Route
North of Salem
Now in Sight
Early Building of
By-Pass East of City
Also Speeded
By JAMES D. OLSON
,-, Portland, Dec. 21 The long
S I awaited construction of a four
lane highway between Salem and
Portland came in sight yester
Aj day when Chairman Ben Chand
ler of the state highway com
mission announced the commis
sion will seek authority to is
sue $75,000,000 of highway
bonds during the next five years.
In making this announcement,
Chandler outlined the major
projects that will be included in
the expanded highway program
which, in addition to Highway
99E, includes the Columbia River
highway; the Oregon Coast high
way; The Dalles-California high
way and a connection between
the Sunset and Wilson river
highways from Glenwood ,to
1 North Plains.
A general contract for build
ing approaches to the Marion
street bridge across the Willam
ette river was awarded to Gen
eral Construction company of
Portland on a low bid of $787,
736. This was within $1500 of
the engineer's estimate.
(Concluded on Page 5, Column 6)
Wilson Starts
Washington, Dec. 21 (IP)
Charles E. Wilson took office to
day as director of defense mobi
lization and immediately ap
pointed General Lucius Clay
and Banker Sidney Weinberg as
his assistants.
Wilson, former president of
General Electric, told reporters
of the two appointments at the
I White House after taking the
oath of office in President Tru
man's presence.
Wilson said Clay and Wein
berg will serve without compen
sation. Clay, former U.S. commander
at Berlin, is relinquishing his
duties as chairman of the board
of the Continental Can company.
Weinberg is senior partner of
Goldman, Sachs and company,
New York investment banking
firm. He was a vice-chairman of
the war production board in
World War II.
The oath was administered to
Wilson by Chief Justice Vinson
in Mr. Truman's circular office.
The three men stood beneath a
large portrait of George Wash
ington, j
W. Stuart Symington, chair
man of the national security re
sources board, some of whose
duties Wilson is taking over in
the mobilization job, stepped up
after the ceremony smiling and
said, "Let me be the first to
congratulate you."
v Wilson told reporters his im
mediate plans are to continue
just what he is doing now that
is, surveying the job that must
be done, and getting "just as
many facts as I can."
Cut 2 to 3 Cents
On Egg Grades
A general cut of 2 to 3 cents
on all grades of eggs went into
effect here, Thursday and on
some of the extra large grades
the decline was as much as 7
and 9 cents a dozen.
The sharp drops brought eggs
down to below the levels where
they were before all the sky
rocketing earlier this month, and
back to listings prevailing In the
summer.
The changes here followed
similar ones in Portland, the de
clines there following a slump in
egg prices all over the country.
The local list for buying prices
now stands as follows: AA grade,
52 cents a cut of 7 cents and a
mark 13 cents below the listing
two weeks ago; large A, 46-56
cents; medium AA, 42 cents;
medium A, 40-52 cents; small,
30-32 cents; crax, 23-30 cents.
For .the wholesale listings,
large grade A generally aie now
quoted at 62 cents, the mediums
at 57 cents.
Weather Details
Mftilmim yesterday, 57! ntnlmia tfr
47, tt. Total M-honr prwlptutlotti 0;
for month 4.77: normal, 4.t7. Stfn pre
cipitation. M.M; normal. 15.08. Utter
helfht, 4.4 (ecU (Report br V.t. Weather
oartai.i
Little Hoover
Probers Offer
Efficiency Plan
Drastic Change in
State Fiscal Set-Up
Held Necessary
Complete and drastic reor
ganization of the state's internal
fiscal control, by placement of
numerous state departments un
der two new ones a depart
ment of finance and administra
tion, and a department of reve
nue is recommended in a re
port to' the 1951 legislature by
the legislative Interim commit
tee on state government admin
istration. The committee headed by Rep.
Rudle Wilhelm, Jr., of Portland,
known as the little Hoover
committee," estimates that adop
tion of its recommendation will
ultimately save the state of Ore
gon from $4 to $8 million each
biennium.
Under the proposed recom
mendations, the board of con
trol's responsibilities for fiscal
control would be transferred to
the department of finances, as
would activities of the printing
board, budget division, central
accounting division of the sec
retary of state's office and the
surplus property agency.
Governor at Head
This new department would
be directly under the governor,
who would appoint a director,
the latter to be assisted by tech
nically qualified division heads.
In the field of revenue admin
istration, the committee has pro
posed that major revenue col
lections be centered in a state
department of revenue, headed
by a director appointed by the
governor, to replace the present
state tax commission. Also rec
ommended would be the three
man tax review board, appointed
by the governor, having review
and quasi-judicial functions in
tax matters.
(Gonttnued on Page 23, Column 1)
West Germans
Get 'Security'
Bonn, Germany, Dec. 21 VP)
The western allies told Chancel
lor Konrad Adenauer today they
are ready to sweep away occu
pation controls if the West Ger
mans take part in the defense
of Europe.
The three western high com
missioners told Adenauer in a
five-hour meeting of plans laid
by the Atlantic pact nations at
Brussels for an international ar
my to defend the western world.
Then a procedure was agreed
upon for negotiating the role of
Germany military contingents.
The negotiations involved a
drastic revision of Germany's
present political status.
The Germans had balked -at
the idea of participation in the
western European army unless
occupation controls were ended
by the British, French and Amer
icans.
The West Germans asked "se
curity treaty" with the occupy
ing powers to replace the pres
ent occupation statute under
which Germany is governed
Living Memorial for
Pioneers Proposed
A living memorial, and not a mere pile or monument of mar
ble or stone, will probably come
saiem Dy ine late tarrou L.. Moores.
Anyway Mayor Robert L. Elfstrom's idea is that a memorial
to early Oregon pioneers provided
be something that people can
use and enjoy, and not just an
other enisled shaft or block of
stone set up on some green
sward. The city, Mayor Elf
strom said, is about ready to
make use of the fund.
The bequest now amounts to
$30,836.49. The original amount,
at the time of Moore's death in
1940, was $25,624.22. The Ladd
& Bush Trust company, now the
Pioneer Trust company, execu
tors of the will, have invested
the money carefully, and the in
terest accumulation now is $5,
212.27; Carroll Moores, known as
"Cal" to his many friends, was a
quiet, unmarried man who, dur
ing the last years of bis life,
operated an elevator in the state
Supreme Court building and
saved his money. He left other
bequests, but the last paragraph
of the will said:
"I appoint the Ladd & Bush
Trust company of Salem, Ore.,
as executor of this, my last will
and testament, with instructions,
Stalin Hailed
As All Highest
(Br the AuocUted Phu)
Today is Joseph Stalin's birth
day he's 71 and while his con
trolled press at home once again
hailed him in extravagant prose,
communists in the ring of states
around Russia pulled out all the
stops attempting to outdo each
other in praising him.
In Moscow, East Berlin,
Prague, Sofia, Bucharest, Buda
pest and Warsaw, the commun
ist press chorused praise of the
man in the Kremlin in phrases
like these:
'Greatest scientist of our
time."
"Leader of the world peace
camp."
"Defender of the worker."
"Great genius Stalin."
Leningrad's city soviet an
nounced a decision to rename
International Prospect and its
continuation, the Moscow high
way. From now on, it's Joseph
Stalin prospect.
Albania renamed the city of
Kuchevo. The address now is
Stalin, Albania.
2 More Shot
In Philadelphia
Philadelphia, Dec. 21 UP)
Two more Philadelphians have
been felled by mystery bullets
but police say they are not sure
either ambush can be imputed
to the sniper sought for seven
previous shootings.
Sixteen-year-old George Hal
ler, Jr., was nicked by an un
known assailant last night while
he was walking on a street in
the Juniata Park section, some
four miles from where Mrs.
Claire Cohen, a young house
wife, was slain Saturday night.
Earlier yesterday a 54-year-old
man was shot in South Phila
delphia by another bullet fired
out of the dark by an unseen
marksman. The victim of this
pre-dawn shooting was Richard
C. Lavery, republican division
committeeman and job printer.
Police are inclined to discount
this shooting as being the work
of the "mad sniper" who struck
down. Mrs. Cohen in Oak Lane.
out of a bequest to the city of
for in the Moores' will should
after executing all previous arti
cles of this will, to use the re
mainder of my estate in the pur
chase of a monument or memor
ial to be erected in memory of
me early Uregon pioneers, to be
presented to the city of Salem,
Oregon, to be placed where the
city council or their successors
in city government may deter
mine." Mayor Elfstrom has not at
present a definite idea of what
form the memorial should be, as
long as it is a useful living me
morial. It might be, he sug-
gested as an example, a swim
ming pool in Bush Pasture park,
though he said there might be
objections to that
The mayor said he would wel
come suggestions from the pub
lie.
In September, 1944, the Pio
neer Trust company had a let
ter from the city saying it was not
ready to decide on what the me-
tnorial should be. Since then
the fund has continued to grow,
NjF
,y ' ill,,,,,, iJjw!tttft ii ,i3
Costly Collision These two cars were badly wrecked and
charred, a power line pole was snapped, electric service to a
large section south of Salem was cut off for an hour, and the
life of Barbara Joan Kime was endangered when she was
trapped in a burning vehicle Wednesday night at Liberty
and Mize roads. These were results of a collision between a
car driven by Walter Kime, Route 9, shown at left, and
another driven by Robert Akers, Route 9, shown with its
shattered prow against the pole.
Auto Crash and Fire
Cut-off Po wer Service
Homes and Christmas trees on Candalaria heights and a large
area south of Salem were blacked out for one hour Wednesday
night, following a spectacular auto accident on Liberty road and
Mize road.
The accident, involving two
Chicago
Center
01 Gamblers
Chicago. Dec. 21 OP) U.S
senate crime committee hearings
in Chicago have touched off a
"full scale" investigation of the
city's multi-million dollar policy
gambling racket.
The urobe. started after wit
nesses told of the far-flung poli
cy operations, already has land
ed in jail five of the alleged top
gambling figures. All testified
during the committee's three
days of public hearings which
closed last night.
A sixth witness, Ralph O'Hara,
a former official oi a racing
news service, was under federal
indictment for refusing to an
swer pertinent questions. Feder
al marshals hunted him after
the grand jury bills, containing
17 counts, were returned.
Although many witnesses sum
moned were not called, Sen Ke-
fauver (D-Tenn), committee
chairman, said testimony demon
strated that "interstate crime to
a great degree centers in Chi
cago."
Among witnesses not called
durine the public hearings,
which fSllowed .an earlier clos
ed session here by the commit
tee, where several former mem
bers of the old Capone gang.
Kefauver said search will be
continued for them as well as
for other missing big name
gangsters. They have been miss
ing from their usual haunts for
several months in an attempt to
escape being served with a com
mittee summons,
Senate Confirms
Mrs. Anna Rosenberg
Washington, Dec. 21 VP) The
senate today confirmed Mrs.
Anna M. Rosenberg as assistant
secretary of defense by a voice
vote.
Action came after the senate
armed services committee twice
had unanimously recommended
such action. Testimony that she
had communist associations 15
years ago was rejected by the
committee as false. She said it
was a case of mistaken Identity,
Born in Hungary 49 years ago,
Mrs. Rosenberg is the first wom
an ever to serve in such a high
post in the military departments.
She will act as a manpower
and labor authority under Sec
retary of Defense Marshall, who
personally asked her appoint
ment.
Mrs. Rosenberg has been serv
ing for a month in the $15,000-a
year post under a temporary ap
pointment.
Bergdoll Gets 5 Years
New York, Dec. 21 VP) Al
fred Bergdoll, son of Grover
Cleveland Bergdoll, notorious
draft dodger of World War I,
was sentenced today to five
years in prison for dodging the
1950 draft.
cars, snapped off a power pole at
the Liberty-Mize intersection.
Nearby residents stated that "it
sounded like a cannon explosion
when the wires snapped.
Four persons were injured,
none seriously, but only fast
work on the part of neighbors in
pulling the occupants of the
burning vehicles' free prevented
severe casualties.
The accident involved a Ply
mouth coupe operated by Walter
Kime, Salem route 9, and a Ford
sedan driven by Robert Akers,
also of Salem route 9.-
State police said that the Ply
mouth car apparently was at
tempting to pass the Ford, when
the bumpers of the two cars be
came locked together. This
threw both cars out of control.
and into the power pole, snap
ping it off near the top.
The Ford immediately burst
into flames. Fire quickly spread
to the other car. Kime's wife,
Barbara Joan, ' was trapped in
side the burning Plymouth. John
S. Kunkel, 145 Mle road, dashed
to the scene with a fire ex
tinguisher, and succeeded in
quelling the blaze enough to
yank Mrs. Kime to safety.
Four teen-agers, Bill Rux, Em-
mett Henry and Dave and Dean
Zanek, all residents of the area,
assisted the occupants of the car
in gaining their freedom from
the fires.
Mrs. Kime and June Bcrnice
Bickell, 173 East Salem Heights
avenue, who was also riding in
the Kime car, were taken to the
Salem Memorial hospital for
minor bruises, lacerations and
burns. They were treated and
released. Akers, who was alone
in his car, was confined over
night at the Memorial hospital,
but was reported in good condi
tion with cuts and bruises.
Hoover Gels
Good Response
New York, Dec. 21 VP) Her
bert Hoover's office today re
ported a "tremendous, favorable
response" to his speech last night
proposing a western hemisphere
defense against communist ag
gression. "The telephone hasn't stopped
ringing," said an office spokes
man. "Telegrams are arriving in
floods. They started coming In
even before Mr. Hoover return
ed to his office from the broad
casting station.
"Not one message has been
unfavorable."
Asked whether the former
president had consulted anyone
in the national administration
prior to the speech, the spokes
man said:
"I would doubt it. Mr. Hoover
always writes his own speeches
and expresses his own views.
Mr. Hoover intends to remain
in New York over the Christmas
and New Year's holiday.
Gifford Calls on King
London, Dec. 21 VP) Walter
S. Gifford took the traditional
ride in an open coach to Buck
ingham palace today to present
nis credentials as the new U. S
ambassador to the court of St
James. He was received by King
ueorge VI at noon.
3-Year Peace
PacfEndsSlrike
On Railroads
White House Confer
ence Settles Griev
ances by Compromise
Washington, Dec. 21 VP) The
months-long dispute between the
railroads and four big rail unions
was settled today with agree
ment on a three-year peace pact
granting pay boosts to about
300,000 workers.
The agreement, calling also
for cost of living adjustments in
wages may set a pattern for the
government's wage stabilization
policies since it was hammered
out under government sponsor
ship.
The settlement was announc
ed at the White House by pres
idential assistant John R. Steel
man after a 26-hour overnight
session with union leaders and
railroad representatives.
Steelman Mediator
Steelman has been handling
the negotiations since the gov
ernment seized the roads last
August to avert a nation-wide
strike.
The agreement still must be
ratified by union bargaining
committees but quick acceptance
is expected.
Daniel P. Loomis, chairman of
the railroad negotiators, estimat
ed the wage increase ranging
up to 23 cents hourly will cost
the roads about $130,000,000 a
year.
Steelman said the unions had
agreed to forego any further
wage demands for a three-year
period. He called it a "no strike
agreement but President D. B.
Robertson of the Firemen' and
J. P. Shields of the Engineers
said they were not actually writ
ing such a clause into the con
tract.
(Concluded on Page 5, Column 6)
C-54 Wreckage
Found on Peak
Manila, Dec. 21 VP) The part
ly burned wreckage of a U.S.C-
54 military transport was sight
ed by search planes today near
the top of a 9,324-foot mountain
140 miles northeast of Manila.
There was no sign of life.
The frur-engine plane with 37
persons aboard struck the 8,000
foot level of Mount Tabayoc en
route Tuesday from Okinawa to
Clark Air base, 60 miles north
of Manila. It carried 30 military
personnel and a crew of seven.
Search pilots flew close to the
wreckage and positively iden
lified it as the missing C-54. It
was last heard asking for wea
ther reports when' within 30
minutes' flying time of Clark
field.
The crash scene was so re
mote that a ground team may
require several days to reach it.
A parachute team was unable
to make a drop because the
wreckage is on a sharp ledge,
with a drop of several hundred
feet on each side.
Two British Movie Stars Wed
Tucson, Ariz., Dec. 21 u.R)
Stewart Granger and Jean Sim
mons, two of Britain's foremost
motion picture stars, honey
mooned today on a leisurely mo
tor trip back to Hollywood.
Granger, 37, and Miss Sim
mons, 21, were married by a
Methodist minister last night at
the home of T. K. Shoenhair
near here.
A cheson Back Hopeful
Of Achieving Peace
Washington, Dec. 21 ftl.R) Secretary of Stale Dean Achcson
returned from the Atlantic pact meeting at Brussels early today,
confident that there is a good chance to achieve world peace.
He landed at National airport at 3:13 a.m. (EST) in President
irumans pianc, tne independence.
The secretary said he will con-
fcr with Mr. Truman today on
the historic conference which
agreed to establish a 1,000,000-
man western European defense
army under Gen. Dwight D.
Eisenhower.
A similar report will be made
to congress and the nation.
The secretory refused to com
ment on blistering republican
denunciations of himself and tho
state department during the cur
rent international crisis.
Ho also declined to discuss
former President Herbert Hoov
er's speech last night because he
has not yet rend it.
Achcson said the conference
was "very successful" and that
It "squared away" plans to get
the allied army "working." Ho
said the defense force "is the'
only way possible" to achlevo'
world peact.
Senate Votes
$20 Billion Bill
For Defense
Washington, Dec. 21 VP)
Working at top speed, the sen
ate today voted $20,000,000,000
for defense spending and gave
approval for $1,600,000,000 of
snecial defense construction,
much of it top secret.
Both measures were passed by
voice vote.
The $1,600,000,000 authoriza
tion measure goes on to Presi
dent Truman. The house passed
I. yesterday.
The big appropriation bill, a
catch-all for funds asked by
President Truman since commu
nist China forces surged into Ko
rea, goes back to the house.
As the bill cleared the senate
it carried some $2,000,000,000
more than voted by the house.
These differences are expected to
be quickly adjusted.
Lie Hopeful
Of Korean Peace
Lake Success, Dec. 21 VP)
Trygve Lie said today the life of
the United Nations does not de
pend upon the Korean situation.
Reporters asked the U. N.
secretary general if the U. N. can
survive in 1951 if the Korean
problem is not peacefully settl
ed.
'Oh, yes," Lie answered
quickly. "The future of the Unit
ed Nations does not depend on
the outcome of what is going on
in Korea."
Amplifying, he said some of
the principles were under at
tack, but that the U. N. itself
must survive, that the U. N. must
keep on trying to achieve a free
and United Korea and must
keep on resisting aggression."
"The present situation is a
difficult one, but I still believe
that world peace can be pre
served," he said. "I still be lieve
that none of the big nations and
none of the small nations want
war."
Lie was asked if he included
among ..all nations" the Chinese
communists. He referred the
questioner to statements by Chi
nese communist envoy Wu Hsiu-
Chuan that the Peiping govern
ment wants peace and hopes for
peace.
RedChina Asked
To Reply to U.N.
Lake Success, Dec. 21 VP)
The United Nations has told the
Chinese communists chances for
talks on a general far eastern
settlement desired by the Reds
would be improved if Peiping
heeded U.N. calls for a cease
fire in Korea.
In a second direct appeal to
the communist government, the
three-man U.N. cease fire com
mittee said a pending Asian
Arab proposal for such negotia
tions would receive greater U.N.
consideration if the Korean
fighting was halted.
The second message, sent to
Peiping Tuesday night, gave no
promise that the far eastern
talks would follow a cease fire.
The United States strongly op
poses linking the Korean fight
ing with such other Asian prob
lems as Red Chna's demands for
Formosa and for a seat in the
United Nations.
Peiping as yet has made no
reply to cither the committee's
first appeal for more cease fire
talks or to the second note.
Achcson, whose departure
from Brussels was delayed by
fog, described the flying wcath
cr as "poor," but added that the
political weather In western Eu
rope "looked well."
Achcson was met at the air
port by Dr. H. Freeman Mat
thews, deputy undersecretary of
state, and other state department
officials. Mr. Truman had plan
ned to meet the secretary, but
changed his mind when it was
learned that Acheson would not
land until long after midnight.
The secretary faces stern chal
lenges of his conduct of foreign
policy and a new burst of re
publican doubts about the ad
visability of continuing the Ko
rcan war and sending American
troops to Europe.
Red Attacks
Rolled Back
On Perimeter
Hungnam Beachhead
Quiet After Allied
Land-Sea-Air Barrage
War at a Glance
(By the Associated Preu)
Fighting Front Both Hung
nam beachhead and west Ko
rean front reported relatively
quiet. At Hungnam, allied
land - sea - air barrages roll
back most menacing attack on
perimeter. . Reds reorganizing
but too slowly to hamper
planned withdrawal of allied
forces on beachhead.
Tokyo Headquarters New
listings indicate total Ameri
can casualties throui Dec.
12 were in excess of 42,000.
In stand against Chinese Reds,
U. N. losses were 12,325. Field
commanders report commu
nist Chinese losses at ratio of
10 to 1 a total of more than
120,000.
Tokyo, Dec. 21 (IP) The Hung
nam beachhead lay quiet today
after allied land-sea-air barrage
mowed down and rolled back the
Reds' most menacing attack on
the perimeter.
Frozen bodies of Chinese and
white-robed Korean Reds lit
tered the snow-crusted east flank
of the United Nations defense
ring where the attack was made.
Communist survivors appar
ently were numbed to a stand
still by the fury of 'round-the-clock
bombardment Wednesday
by allied warships, planes and
land artillery.
Quiet on Western Front
Field dispatches reported the
shattered survivors were thrown
back from the point of gravest
peril to the allied forces holding
their last sliver of northeast Ko
rea around Hungnam on the Sea
of Japan shore.
(Concluded on Pago 5, Column 1)
War Casualty
List Mounting
Tokyo, Dec. 21 VP) General
MacArthur's headquarters said
today American casualties in the
worst fortnight of retreat In Ko
rea totaled 11,964 killed, wound
ed and missing. It said other
United Nations forces from
abroad suffered 1,011 casualties
in that period.
The total of 12,975 did not In
clude Republic of Korea losses.
Headquarters said field com
manders reported Chinese Red
losses at a ratio of 10 to 1 a
total of more than 120,000.
The period was dated Nov. 27-
Dec. 12, but the total also In
cluded relatively small losses
suffered during "U. N. probing
attacks beginning Nov. 12."
Washington, Dec. 21 VP) The
defense department raised its to
tal of announced Korean battle
casualties to 36,421 today. This
was a rise fo 2,543 since its last
report a week ago.
Of these, 5,518 were listed as
killed in action, 25,587 wounded
and 5,316 missing. Of the
wounded, 662 later died, bring
ing total deaths to 6,180.
The department announces
orly casualties whose next of kin
has received notification.
Canadians at
Front Seek Fight
With Canadian Forces in Ko
re , Dec. 21 VP) Husky, wise
cracking Canadian infantrymen
many of them combat veterans
and all of them volunteers are
stamping their feet on a Korean
hillside.
They want to fight. They fig
ure that's what they came over
here for. As one of them put it:
This waiting around is no fun."
Wearing sharply creased kha-
kl-grcen battlcdress, the Canad
ians already have commanded
the respectful attention of friend
ly troops and civilians in the area
of their hill encampment.
One American GI remarked as
a small column of the Canadians
passed him on the roadway,
"These boys sure look good. I
hear they have quite a record."
During the First World War,
th Princess Patricias won offi
cial battle honors for the part
they played in the bloody battles
of YPRES, Vlmy Ridge, Amiens,
Passchendale and other major
engagements In Franca and
Flanders.
In World War II, they fought
in the Sicilian and Italian cam
paigns and took part In the drive
into Holland.