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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 21, 1951)
sua! THE WEATHER PARTLY CLOUDY tonght and Thursday. Liftle change In tem perature. Low tonight, 14; high Thursday, 54. HOME EDITION 10 63rd Year, No. 45 SW.,"jrMS Salem, Oregon Wednesday, February 21, 1951 (20 PagesJ Price 5c apiial jkJ Impose Young Seek to Slate Tax on Real Properly Levy to Raise from $6 To $18 Million Propos ed by House Program A state tax on real property to raise between $6 million and $18,400,000 during the second year of the 1951 53 biennium will be imposed if the house tax program, now shaping up, is adopted by the legislature. The amount of money that the house committee will recommend as a state property tax is depend ent upon how deep the ways and means committee can slash the $180,000,000 state budget. At a meeting of the house tax ation committee held Tuesday night, a bill transferring person al income tax collections made after June 30, 1951 into the gen eral fund was voted out with favorable vote. To Repeal 1949 Law In addition the committee ap proved a bill repealing the dis tribution section of the tax law of 1949, with the result that the county school tax, estimated at $8,200,000 for the biennium, and heretofore met with income tax revenues, will be passed back to the counties, If this bill becomes law, it would mean that counties of the state will face an additional 5 mill tax levy for county school support. House Joint Resolution No. 12 removing the state from the state property tax through amendment of the state constitution was also approved. If this resolution is adopted, the voters will pass on it in.November, moz. (Concluded on Page 5, Column 8) Electric Bond Opposes Sale tric Bond and Share, a major stockholder in the American Power and Light company, de manded today that the securities and exchange commission take jurisdiction over AP&L's pro posal to sell the Washington Water Power company to public utility districts. Abner Goldstone, a New York attorney representing Electric Bond and Share, told an SEC hearing his company owns 7.8 percent of American's common stock and doesn't believe the proposed sale should be permit ted without full disclosure of all the facts. American has served notice it Intends to sell WWP to two or more Washington PUDs. -Gold stone said the notice contains "no adequate disclosure of facts such as needed to protest the public and investors," he said. The PUDs, who contend SEC has no jurisdiction since they arc public bodies, were sched uled to present their testimony this morning. But two hours after the second day's session got underway, "projurisdiction" speakers were still to be heard, A spokesman for 10 local stockholders of American called on AP&L to distribut its WWP common stock on a pro rata basis to the shareholders. Denies Pocketing Fees On RFC Loans Testimony Contra dicts Texas Story of $85,000 Fee Washington, Feb. 21 VP) E. Merl Young, one-time govern ment messenger, swore today that he never received any fees or commissions from anyone who wanted .a .reconstruction finance corporation loan. Young denied to a senate banking subcommittee that he offered to be influential in ob taining a $10,100,000 RFC loan for the Texmass Corp., a Texas and Massachusetts oil develop ment company. His testimony on that point contradicted that of Ross Bo hannon, a Dallas, Tex., attorney, who told the subcommittee earlier that Young sought an $85,000 fee from Texmass to in fluence granting of the loan. Bohannon, who represented the Texmass firm, had described Young as a man of "tremendous influence" who was "close to President Truman." Young Most Influential une senate committee is ex ploring its charges of "fa voritism and influence" in the granting of loans by RFC the government multi-million dollar lending agency. A recent committee report criticized three RFC directors and said of Young: The individual named most frequently in the reports of al leged influence which have reached the subcommittee is E. Merl Young." Young, a spare man with thin ning hair, read a prepared state ment to the subcommittee when he took the stand after being sworn. (Concluded on Page 5, Column 4) Red Pacifists Meet in Berlin Berlin, Feb. 21 VP) The "World Peace council," opening a three-day session in East Ber lin, today called on world com munism to oppose rearming of West Germany and Japan. The . pro-Kremlin council, summoned from far and wide, set up committees to draft reso lutions pinpointing the Soviet Inspired aims of keeping the for mer axis partners defenseless, The politics to be adopted by the council before Saturday night will amount to gospel for communist followers throughout the world. In a huge Soviet-sector hall decked with red flags, the coun cil opened its public sessions shortly before noon today with Pietro Nenni of Italy in the chair, On the rostrum were such In ternational figures ai Dr. Hew lett Johnson, "Red dean" of Can terbury: Hya Ehrenburg, top Soviet journalist; Jean LaFitte of France and Professor Kuo Mo Jo, president of Communist China's "peace committee." The council, in a preliminary statement, declared this session would be devoted to "the great historical decision facing the world today war or peace. Auto Output to Continue Hiah Washington, Feb. 21 A high government official says production of passenger cars and other consumer goods will con tinue at "very high levels" de spite a one-fifth cut in steel for such products during the. second quarter this year. xne cut in steel use was an nouncea yesterday afternoon Dy Manly Fleischmann, national production administrator. it applies to passenger cars, refrigerators, washing machines, cutlery, household appliences, bi cycles and speed boats, jewelry, games, novelties and slot ma chines. Steel which may be used in such products during the quar ter beginning April 1 will be limited to 80 percent of the av erage quarterly level during the first half of 1950. Output of goods themselves was not limit ed, but manufacturers would have to use some substitute ma terials. Fleischmann told reporters the limitation is necessary to save about 1,000,000 tons of steel for defense and defense-supporting programs. The administrator said the consumer durable goods industry, which consumes rough ly one-fourth of the nation's fin ished steel production, generally has been operating at the highest level in history. At the same time, he said, many small indus trial concerns have been unable to obtain their fair share of the materials. I W 3 : ,41 V. - .. ffSiS Allies Flatten Red's Wonju Bulge in Central Korea Line Enemy Blocks Prevention of World War III Seen by Truman Blast Follows Suicide by Gas Portland, Feb. 21 VP) Fumes from apartment house gas stove exploded today, causing an esti mated $15,000 damage. All burn ers of the stove had been turned on and the apartment occupant was dead of asphyxiation hours before the blast. Deputy Coroner Ted Lucas said it appeared that the occu pant, identified by papers as1 Elmer Earl Dillinger, 47, The Dalles, had turned on the gas jets, written a note, then died of the fumes. After several hours the gas ignited, possibly from an oven pilot light. Four apartments in the build ing, the Bristol at 508 S. E. Grand avenue, were heavily damaged but no one was injured. Manager Everett Rodgers, first to enter the apartment, said the kitchen was ablaze and pa pers on a table were burning. A charred writing tablet with penoil beside it, was on the table above Dillinger s Body. ' Lucas said he thought Dil linger had written a note on the tablet, but it was not possible to say definitely. Photographs, personal cards and letters had been arranged on the bed. 200 Cases Flu Indian School Approximately 200 cases of influenza were reported as being prevalent at the Chemawa In dian school Wednesday and be cause of the outbreak the sched uled celebration in observance of the 71st anniversary of the in stitution has been postponed. Dr. W. J. Stone, county health officer, characterizes the disease as "comparatively mfld" and one that is hard to control because of the close proximity in which the pupils live. He expects the epidemic will run its course with all students becoming immuniz ed befort it subsides. The disease stems from a new virus strain one that is hard to immunize against, states Dr, Stone. The county health offi cer reports that other than the Indian school, few instances of influenza have been brought to his attention. Russell Kelly, superintendent of the Indian school, is on the Atlantic coast attending the an nual convention of the National Education Association and will not return until the 25th. Crippled Youth Goes To School By Radio Harold Cummins, 15, Salem high school sophomore, is. accord ing to his teachers, an "extremely responsive student." Harold participates in classroom discussion much more than the average student. He supplies answers to many questions. And the questions he asks his teachers are a benefit to the entire class. Yet Harold has never been in-s- side a Salem high school class- Marion Circuit Judges Favor Juvenile Court If juvenile offenders in Marion county are to be given the proper attention, a new department of domestic relations should be established. This was the jist of testimony given before the house judiciary committee Wednesday by Circuit Judges George R. Duncan and Rex Kimmell in support of Housed Bill 5, introduced by Speaker of the House John F. Stelhammer. "I do feel that the juveniles of this county are neglected because of the lack of time that the two judges can give to them," Judge Duncan said. "It is a work of great Importance and I think It comes to a question of whether the people want juvenile cases in five minutes and the cases then thrown back to the juvenile officer or have a court that will actually delve into these cases and make an attempt to reclaim the delinquent youths." Judge Kimmell told the com mittee that he believes that Mar ion county has sufficient court business to warrant a third judge who devotes his time exclusively to divorce cases and juvenile matters. It takes time to properly handle juveniles and at present such time is not available, added. Members of the committee asked the judges to compile record of time consumed handling cases directed against state departments and held up action pending submission of this data. ' At Classroom "Desk" Harold Cummins, Salem high school sophomore, "attends" classes through a two-way speaker set up between his bedroom and three Salem high classrooms. Harold is confined to bed with a hip injury. Teachers say he is very active in classroom discussion. room. He is confined to his home at 1060 Mill street, abed with a hip injury. Pacific Telephone and Tele graph company recently installed two-way speaker system be tween Harold's bedroom and three classrooms at Salem high school. For three hours a day, Har old tunes in his bedside speaker to a class at Salem high school. He can hear everything the teachers and pupils say. Teachers often call on Harold during class discussion periods, Harold merely presses a handle on his two-way speaker, and his voice comes out loudly and clear ly in the classroom. Harold attends classes in English, biology and world his tory through his two-way speak er. He receives mathematics in struction from his tutor, Miss Frances McCarter. Harold is the only student in Oregon who has a classroom-to- bedside speaker system. The sys tem is working out very satis factorily, and it is expected to be followed. .by other schools soon. Note School officials will please refrain from reading the following paragraph: Harold has admitted he has skipped classes. "It's a cinch," he confides. "I just don't turn the speaker on. 'Egg and I' Held Not Libelous Seattle, Feb. 21 VP) Ten per sons who contended they were libeled in the humorous novel The Egg and I" lost their suit yesterday to recover $500,000 in damages. A superior court jury, which was out more than 24 hours, de cided unanimously in favor of the defendants, Betty MacDon- ald, who wrote the best seller, her husband, Donald, and her publisher, J. P. Lippincott. The jury of nine men and three women took only one ballot. The many hours before their reached verdict was spent in listening to "The Egg and I" being read aloud. This was a literal interpreta tion of Superior Judge William J. Wilkins' instructions to the jury that the book be consid ered in its entirety. The half-million dollar suit was brought by nine members of the Albert Bishop family of northwest Washington and Ray mond H. Johnson, Seattle. The Bishops held they were portray ed as the "Kettle" family of the novel which had the rugged Olympic peninsula wilderness as its locale. Johnson argued he was the Indian "Crowbar" described by Mrs. MacDonald. Jurors were polled Individual ly on each of the 10 cases, and said that none of the plaintiffs could be identified as a charac ter in the book. Mrs. MacDonald, who had not expected a verdict last night, was at the home of a sister when the Jury reported Its decision short ly before 6 p.m. 2 Stales Power Lines to Link-up Portland, Feb. 21 UP) Pacific northwest and California power disrtibuting systems will be link ed by November 1, 1952. Interior Secretary Oscar Chapman said in a telegram read at a meeting of the Colum bia oasin interagency committee here yesterday that the acting defense power administrator had certified the interconnection as required in the interests of na tional defense and setting forth the benefits to both the Pacific northwest and to California areas." The telegram, read by Bonne ville Administrator Paul J. Raver, was a copy of one sent to Washington State Representa tive Edward E. Henry, answer ing objections by the legislators to the connection. The bureau of reclamation will build a 220-kilovolt trans mission line from Shasta dam north to Klamath Fals, Chap man said. There it will connect with Bonneville power adminis tration facilities being built to serve southern Oregon. The average annual saving would equal a minimum of 730, 000 barrels of "oil vital to de fense," Chapman said, adding that the connection would firm up 100,000 kilowatts of power for northwest aluminum plants which now are served on an in- terruptible basis. This, he said, would permit production of 40,000,000 pound or more of aluminum "which could not otherwise be produced in event of adverse water con ditions in the Pacific northwest, by importation of steam genera tion from California." Washington, Feb. 21 VP) Pres ident Truman said today "we are gradually approaching position" in which a third world war can be prevented. All the current attempts to build up men and material is merely an effort to prevent such war, he told a group of Ma sonic leaders. He added: We are gradually approach ing a position in the world where that can be prevented, if we have the support and coopera tion of all segments of the pop ulation. "And that means industry, la bor, and farmer and you gen tlemen and all the white col lar people who do the inside work to make these other things operate." Speaks to Masonic Leaders Mr. Truman spoke at a break fast for Masonic leaders from all over the country. The break fast was given at the Statler hotel by an old Kansas City friend, Frank Land, who heads the DeMolays, an organization for young men. Mr. Truman said he realized that it's difficult for most peo ple to understand what a seri ous situation the government is in. He sized it up this way The most tremendous emer gency that any government has ever been faced with in the his tory of the country." French Seeks Repeal Of Basic School Law Rep. Giles L. French, Moro, said today he is introducing bill to repeal the $30 per child basic school fund Increase which was voted by the people last No vember. It is the second measure to re duce state school aid to districts. The $30 per child increase would cost the state $11,000,000 a year. First Marines Rotating War Veterans Back With U.S. Marines, Korea, Feb. 21 VP) The First marine division has begun rotating vet erans of its bloody Korean bat tles back to duty In the United States. Maj. Gen. Oliver P. Smith said 600 already have gone back. After leave, they will help In doctrinate new maripe units. Smith indicated that when re placements are available anoth er 1,200 will be rotated. Most of those selected arrived in Ko- wlth the first marines to enter this war. They fought on the Masan front, in the bloody Naktong river battle, at Inchon and in the Chosin reservoir area. Controls Sought For Canadians Ottawa, Feb. 21 (IP) Prime Minister Louis St. Laurent's lio eral government last night asked parliament for sweeping powers to control prices, wages, rents and manpower to be used if and when they are needed. With the liberal party holding 190 of commons' 262 seats, pas sage of the measure appeared certain. The prime minister submitted a five-clause emergency powers bill saying that the international situation threatens the Domin- ( Concluded on Page 5, Column ") ion's security. Introducing the measure, St, Laurent said his government did not plan comprehensive controls now in any field. The powers asked, he explained, would be on standby" basis, for use only should worsening conditions ne cessitate them. He emphasized that the bill- unlike World War II legislation gives parliament a veto over any cabinet order. Nor would the proposal give the government censorship pow ers to control or suppress news, which It had in World War II. The legislation would remain in effect until May 1, 1952. The chief criticism from op position leaders was that the gov ernment should act more decis ively to halt inflation and rising living costs instead of merely as suming preparedness powers, 5 Dead from 1 Anli-Freeze Sip U. S. Tenth Corps Headquar ters, Korea, Feb. 21 (IP) Three soldiers and two seamen died and others were made ill after drinking denatured alcohol while awaiting evacuation from the Hungnam beachhead last De cember, A U. S. Seventh division spokesman said today. (Officers of a navy-chartered freighter, the Tainaron, said on arrival in San Francisco they heard perhaps 50 soldiers and crewmen aboard evacuation ships had died from drinking anti-frceze). The spokesman said two of the three army victims were in fantrymen of the Seventh divi sion and the other was from an ordnance company. He said the two dead seamen were from the crew of the Tai naron, one of the ships which aided in the withdrawal from the east coast port. (Capt. J. A. Roy of the Tai naron, however, said in San Francisco that three of his crew died.) Names of the victims were not released. Weather Details Maximum yeiterday. 81; minimum to day, 14. Total t4-hour precipitation, .01; for month, S.14; normal, 3.64. Beaton pre clpltation, 41.98; normal, 36.30. River height, 4.7 feet. (Report by V. 8. weather bureau. Egg Prices Boosted Another Cent Here Egg prices were boosted an other cent here Wednesday line with advances on the Port land produce market. T h change marks the third boost within a week. New buying quotations are now listed as follows: AA, 48 cents; large. A, 45-50 cents; me dium AA, 45 cents; medium A, 41-46 cents; small, 23-32 cents In the wholesale list, large sizes generally are 57 cents; me diums, 53 cents. Butter, butterfat and other produce lists remained unchang ed. Crackdown Ordered On Used Car Racket Washington. Feb. 21 VP) The government today banned the sale of new cars at inflated prices in the used car market and set dollars-and-cents ceiling prices on all used cars. The action was announced by the office of price stabilization (OPS). The new regulations are effective March i. Bruce Morris, chief of the- Life Begins at 40 or Does It? Hal Boyle Wonders He's 40 Today Read His Thoughts on This Birthday of His on Page 4 In Today's Capital Journal Salem's Leading Newspaper agency s automobile pricing di vision, said the move was de signed to halt a "widespread" flow of new cars into the used car market and to prevent used cars from selling above new car prices. Both practices occurred dur ing the last war. The price schedule of used cars, under the ceiling, will be based on prices listed in guide books employed by used car dealers as a yardstick of values, OPS listed the five standard books used in this connection and said that they will be recog nized as the official source of dollars-and-cents prices for used automobiles. Morris explained that since automobile prices at the manu facturer's level were frozen on Dec. 18, some dealers across the nation have been selling new cars in the used car market at prices above the retail list price, Today's action states that not only must dealers use guide book prices as ceilings on used cars but that, in any cases where guide book quotations on a used car are higher than the list price of the automobile when new, they must not charge more than the new car list price. Morris explained this provl slon in the following manner; One used car guide book quotes a price of $1665 for a 1950 door Chevrolet sedan. The fac tory delivered new car list price on the same vehicle is carried $1450. Thus a dealer would not be permitted to charge more than $1450 for the ear under normal circumstances. Hew Attempt to ross Han River Tokyo, Feb. 21 VP) Allied forces flattened out the Red's Wonju bulge in central Korea today but In the west the -communists blocked two new allied attempts to cross the Han river. A driving, relentless rain turned the whole Korean battle- front into a mud puddle. Field dispatches said the rain soaked GIs, bogged down tanks, filled foxholes and deepened the miseries of the front. A few troops took advantage of the rain for their first show ers in a month; those who could took turns ducking into Korean shelters. But for most, the rain meant a constant soaking. Red Mortar Fire Red mortar fire "the heav iest and most accurate I've ever seen," said one commander drove back an armored patrol to the south bank of the Han seven miles east of Seoul. Five miles downstream from Seoul, heavy resistance checked South Korean patrol trying to cross the Han. American and British troops mopped up Red stragglers south of the river. On the east central front. United Nations troops thrust forward against light opposition. (Concluded on Page 5, Column 5), Some of Guard Sent Overseas Washington, Feb. 21 ") Th plan of the army to release na tional 1 guardsmen when their federal service time runs out next year appeared today to leave unchanged the probability that at least two of the present ly federalized six guard divi sions will be sent overseas la the next few months. The army also disclosed, In news conference yesterday by its training chief, Maj. Gen. Maxwell D. Taylor, that it will call no more guard divisions "un less the world situation changes." This latter statement startled some congress members and brought predictions that the law makers would make inquiries. Senator Bridges (R., N.H.), of the senate armed services com mittee called it a "change in policy" and said he thought the committee would want to look into it. And Senator Jenner (R., Ind.), said he was confused. If the guard isn't to be used, he asked, why "are they getting set to buy equipment for 10,000,000 men?" Under existing law, the army has no choice about releasing guardsmen when the tenure of the federal service expires. The draft act, under which the gov ernment has called in the guard units, provides the units may be kept in federal service for 21 months. Legislation now pend ing in congress would extend that time to 24 or 27 months. the time varying with different bills which have been offered. Tito Assailed By Kerensky Charlottesville, Va., Feb. 21 (IP) Alexander Kerensky, pres ident of the provisional Russian I government in 1917, declared I last night that communism is the I enemy of the free world, wheth er It bears the Tito or Stalin I label. Tito is without any future,"! declared Kerensky, who was ex-1 iled from Russia almost 35 years! ago by the Bolshevik revolution.! The internal regime of Tito Is J the same as that of the Soviet I Union." Kerensky a sentiments were I echoed by two other exiled Eu-1 ropcan statesmen Grigore Fa fencu, foreign minister of Ro mania until the nazis seized con trol of that country before World! War II, and Stanislaw Mlkola- jczyk, former prime minister of Poland. The three men voiced their views during a discussion of for eign affairs at the University of Virginia. All three agreed that It id possible to build a just and laat-j lng peace.
