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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (April 21, 1951)
Jomraal H M THE WEATHER FAIR TONIGHT and tomorrow with little temperature chance. Low tonight, 28 to 30; high Sun day, 65 to 61. JS- nd 63rd Year, No. 96 SSfJlSZiSS Salem, Oregon, Saturday, April 21, 1951 Price 5c he Capital -etta Holiest Battle Of Session Over Senate Votes 2 Years' Probe Big TruckRates Of Liquor Board Harvey Admits Previous Testimony on Hiked Rates Erroneous By JAMES D. OLSON The battle over the big truck rates one of the most contro versial issues in the present leg islative session was climaxed Friday when A. F. Harvey, of the publio utilities commission admitted that previous testimony he had given the committee that xne proposea rate gcneauie wuuia increase the cost to small truck' ers was erroneous. Harvey had asserted before the committee Thursday that the rate schedule in House bill 46S would increase the rates of small carriers in some classifications as high as 80 per cent instead of reducing the small truckers' rates as indicated in a schedule submitted by the state highway department. Reduces Small Truck Fees At the meeting Friday Harvey said that at the Thursday ses sion he had not been given time enough to complete his state ment, which he said would have been the effect of two other highway rates bills, when fig ured together with H. B. 495, would actually reduce the small truckers' fees. He also admit ted that the highway schedule covering the effect of rates on all classes of trucks was sub stantially correct. The complete face-about on the part of Harvey, who is in charge of the transportation di vision of the public utilities com' mission, virtually silenced th opponents to the bill Senators Jack Bain, Phil Brady, both of Portland and Russell Gardner of Newport, all democrats, who had (Concluded on rage 5, uoliunn 6) Interim Committee Also to Study Laws And Enforcement 5 Firms to Bid On Courthouse Five contractors will file bids for the Marion county court house construction job. ' Pre-qualification statements for the courthouse project were required by state statute. They consist of a financial statement of the contracting company, the number of men available for construction work, type equipment used by the contrac- tors, etc. Making such filings were Viesko and Post, Salem; C. Corkum Co., Portland; Ross B, Hammond Co., Portland; L. H Hoffman, Portland; and J. G Watts Construction Co., Port land and Seattle. Each of the five contracting firms will submit bids on the courthouse construction project between now and April 27. The sealed bids will be open ed on April 27, and the construc tion job awarded to the lowest bidder providing the courthouse commission approves that com pany's pre-qualification state ment. Estimated cost of the struc ture is $1,380,000. Longest Dry Spell in April Anril 1851 Boes In the weather records with the longest dry pell for the month In the history nf weather bureau reports here. Salem has had no rain for 22 davs. the last precipitation being the .06 of an inch measured on March 30. Only comparable per iod for the spring "drought" was In 1934. On April 2 of that year, 43 un measured, then only a trace was recorded for April 16 and 21, Intermittent rain for the remainder of the month coming after that date. The minimum of 26.4 degrees Saturday morning here, more than five below freezing, is the coldest mark ever recorded here for so late In the spring. In April of 1935, the mercury slid to 24 4icrep. but on April 3. Frost was very noticeable In many sections of the county this mnminff with some damage most certain for some tender new crops and fruit trees. Saturday was another sunny day here with indication the eonH weather will hold over Sunday. By PAUL W. HARVEY, JR. The Oregon senate called to day for a two-year legislative investigation of the state liquor commission and a study of state liquor laws. The resolution goes to the house. The investigation would be made by an interim committee of three senators and four rep resentatives, who would report to the 1953 legislature. The committee would "make careful and comprehensive study of the laws relating to al coholic beverages, with special reference to the manner in which they are enforced." It also would report "upon the relation of crime to the sale and consumption of liquor." Hilton Sponsors Bill Sen. Frank H.- Hilton, Port land, chairman of the senate al coholic traffic committee-which sponsored the resolution, said he feels a legislative investigation is needed because the recommenda tions of the Multnomah county grand jury have not been carried out. That grand jury asked for the firing of Liquor Administrator William H. Hammond; better en forcement; and a paid liquor commission. No senator spoke against the measure, but these senators vot ed against it: President Paul Patterson, Hilsboro; Dean H. Walker, Independence; Howard Belton, Canby; and Rex El lis, Pendleton. Education Pact Members of the committee would be appointed by the pre siding officer of each house. The senate sent to the house a bill to ratify the western states regional compact for higher ed ucation. (Concluded on J-age 5, CoUunn 5) Bulgaria to Free Vogeler Budapest, Hungary, April 21 OT The Hungarian government has agreed to release Robert E, Vogeler, American businessman held in prison here on charges of espionage. A brief communique from the Hungarian foreign ministry said merely that negotiations between the Hungarian government and the U.S. legation here were successful. A spokesman for the foreign ministry declined to say wheth er Vogeler has been released or still is in prison. Vogeler, now 39, was sentenc ed to 15 years imprisonment by a Hungarian court on Feb. 21, 1950, after having been arrested in November 1949, on charges of being a spy. He was in Hungary as assistant vice president and central European representative of International Telephone and Telegraph company. Arrested with him was Edgar Sanders, a Briton with the same firm. Sanders also was accused of spying and got a 13-year sen tence. Both confessed in court. Damaging Frost Hits Northwestern Orchards (Br the Associated Press) nomooincr frost hit Pacific northwest fruit regions again last night, but heavy smudging may have saved much of. the crop. The frost struck lor tne secona couskuu w -natchee-Okanogan area of north-central Washington. It spread to the big "soft fruit" producing areas oi wasnmgions nm valley and the Mood Kiver vai-j Weather Details Mailnan rntenlar. til 1,1 . d. !. fatal 14-fcaar rettiama: rlallellsn, .! im " 17 Seamen Dead And 22 Missing New Orleans, April 21 () Seventeen seamen were known dead and 22 others were miss ing and presumed dead today in the collision of two tankers that set both ablaze in the Gulf of Mexico 200 miles south of Mor can Citv. La. Marine records indicate it js the greatest, disaster off the U.Si coast since 84 lives were lost in the collision of an American tanker and freighter off the At lantic coast on June 6, 1943. In yesterday's pre-dawn col lision during heavy fog, the 10,000-ton Esso Greensboro and the 26.500-ton super tanker Esso Suez crashed, exploded and burst into flames. Only one man among the 44 man crew of the Esso Suez was killed in the collision but an other, unidentified, died of burns. Three other men on the Suez were burned. All the other dead were aboard the flaming Greensboro, carrying 42 men. The bodies of 15 men from the Greensboro were recovered and five surviv ors from the Greensboro were picked up. Four of these nine two irom the Greensboro and two from the Suez were flown to Corpus Christi, Tex., for medical attention. Storekeeper LeRoy E. Fay, of Baltimore, Md., a survivor from the Greensboro, said he was' ly ing on his bunk when the ship "exploded. He was severely burned when flames roared through the port hole. The Blizzard Hits Mac A blizzard of ticker tape and pa per virtually blots out the scene on lower Broadway, New York, as the city goes all out in welcome to Gen.Douglas MacArthur. The general (circled) waves to the cheering throng which jammed sidewalks. (AP Wirephoto) MacArthur Pays Visit To Herbert Hoover New York. April 21 (U.R) Gen. Douglas MacArthur interrupted fis first full day of rest since his return to the United States to visit with former President Herbert Hoover, nis, -old cniei. -Accompanied by hisaide, Maj. Geri. Courtney' Whitney ,"lie- ?went from his 37tn floor suite the Waldorf towers to the one lecord of Wake Island Meeting Kept MacArthur's Aide Denies Story About Truman Conference New York, April 21 OT An aide to General Douglas Mac Arthur said today no steno graphic notes were taken when the general and President Tru man conferred on Wake island and part of the time the two talked alone. . The statement was made by Maj. Gen. Courtney Whitney when queried about a New York Times story which said adminis tration records showed that at the conference MacArthur was sure of victory in Korea he offered his best troops for Eu rope, apologized for embarras sing the president on the For mosa issue and predicted Chi nese communists would not en ter the conflict. Whitney's Statement General Whitney said: "The conference at Wake island was held in mid-October, over a month before the formal intervention of Red China. The danger of intervention by Red China was inherent in the origi nal decision as General Mac Arthur has publicly pointed out to give military support to the government of Korea. "The question was basically a political one, involving decisions made in Feiping and quite be yond the reach of General Mac- Arthur s military field intelligence. "At the time of the Wake island conference as far as know, no one had the slightest idea that such a decision of in tervention would be made by Red China. (Concluded on Page 5, Column 8) 2.260,00 Executed Taineh. April 21 OT The Free China reds have executed 2,260,- 000 persons in mass purges. ley of Oregon, Yakima valley growers, warn ed by reports of Thursday night's damage in the northern valleys, engaged in a tremen dous smudging operation. They rushed to buy old tires, wooa, sawdust and fuel oli. The resulting smone oianKei- ori hi vallev until a.m a.m. Yakima orchardists said iney Vu-iioved the smudging averted mninr damage, altiiougn me tpmrvprnture dropped to 21 above in the city and 18 in some districts near Yakima. The Hood River valley was re- norted hard hit. First reports said pears and cherries were damaged to an uncertain extent. Annies are just Diossoming in the Hood River area, and it was not immediately determined whether they suffered damage, The temperature ranged from 16 to 24 above in the Hood River area not equipped to smudge and In some of the colder positions of the valley smudging failed to raise the temperature above 22. Prineville, in central Oregon, reported a minimum of 10 above and there was a possibility of damage to the clover crop. Baker, in eastern Oregon, had an all-time low of 18 for April 20. The previous low for that date was 23 on April 20, 1831. The Wenatchee area, where heavy damage was reported after Thursday nights freeze, had a 20 degree minimum last night but the cold didn't extend over as long a period, -mere was heavy smudging again in the Wenatchee valley, and air planes flew over the orchards at dawn in an effort to stir the air and minimize damage. Wenatchee fruit growers said it would be several days before the result of the frost was fully Defense Effort Hits Industry New York, April 21 OT The first real impacts of the defense program hit business and indus try this week. Many economists believed it would be summer before the full effects are felt. But high in ventories, conversions from civi lian to military goods and gov ernment restrictions were be coming increasingly painful. Industrial production, how ever, whirled along at a breath taking pace. Defense orders roll ed in for many industries. Fur ther plans were announced for hefty expansion programs. Many a first quarter earning was a record. The steel industry was operat ing at 102.9 percent of theoreti cal capacity. This topped tne previous week's figure. General Electric company, which spent $425,000,000 on new plants and equipment in the past five years, will spend more than $350,000,000 in the next four years to enlarge its facili ties still further. Minnesota Mining and Manu facturing company outlined $6,500,000 plant expansion pro gram. 3 States Flooded By Mississippi (Br the Associated Prvss) The mighty Mississippi, snrintf ramrjaae in the upper val lev area, today threatened seri ous floods to river towns in three midwest states. "Old Man River," fed by rains and heavy runoffs, spilled out over midwest lowlands ana forced thousands to flee their homes. The Red Cross estimated nearly 3,000 persons have been evacuated in the flood-stricken area. Other hundreds were threat ened with evacuation over the week-end or early next week. A state of emergency nas been declared In some Iowa com munities as the big stream's crest inched to near record levels. There was feverish activity in some of the cities along the riv er southward from Wisconsin in to Iowa and Illinois. Levees were being strengthened. Bull dozers were put Into operation in building earthen dikes. . The Red Cross, National Guard and civil defense agencies join ed in caring for flood victims nnA npunarinff in pnmhnt What might be the highest floodwaters operators is scheduled Tuesday In years, IH Aoeraeen, occupied by Mr. Hoover on the 31st for what Whitney said was just a friendly call." Gen. , MacArthur and Mr. Hoover talked for 20 minutes. Whitney declined to say what they talked about but added that no politics were discussed." MacArthur returned to. his suite after the meeting, Mrs. MacArthur remained in their luxurious "Presidential suite," resting from the tumul tous welcome given the famous family by some 7,500,000 New Yorkers yesterday. The couple 13-year-old son, Arthur, was en joying himself at his first major league baseball game. A special committee from Wis consin announced that the gen eral had accepted an invitation from Milwaukee to receive that city's welcome next Friday, Otherwise, there was no offic ial word of MacArthur's future activities, although it was re ported he would be in Chicago for that city s welcome Thursday. However, Whitney said it hadn't been decided def initely and wouldn't be until least tomorrow. Milwaukee is the general's le- gal home. Whitney was asked about an offer to the general to become an executive of the Remington Rand company at a reported sal ary of $100,000 a year. Whitney replied emphatically there had been no decision on such future plans. Lumber Strike Held Averted Portland, April 21 OT The lumbermen's industrial relations committee, representing employ ers of some 15,000 workers Oregon and Washington, reached a contract agreement yesterday with the CIO International Woodworkers' of America. James A. Fadling, union pres ident, said the agreement is the same as reached earner wun three other employer groups and calls for a 12 cent hourly pay boost, three additional paid hol idays and other contract improvements. An earlier offer from the LIRC was rejected because, Fadling said, there were too many strings attached The union is still negotiating with the pine operators in the Klamath Falls and Spokane ar eas. It has no agreement, either with Oregon coast operators, and the Timber Operators associa tlon. A meeting with the timber Vatican Organ Again Critical Of MacArthur Vatican City, April 21 OT L'Osservatore Romano said to day "the war against commun ism" of which Gen. MacArthur spoke before congress cannot be won with ammunition. Today's criticism of MacAr thur the second since his dis missal was written by Countl Giuseppe Dalla Torre, managing editor of the Vatican newspaper, Just a week ago, another Os servatore writer described President Truman's dismissal of MacArthur as a "decisive act' that proclaimed a "desire for peace." The pagan motto: 'If you wish peace, prepare for war, may still hold, but to it should be added 'If you wish peace, pre pare for peace,' " said Dalla Torre. Hew Board to Washington, April 21 OT President Truman today created a new 18-member wage stabi lization board with power 'to recommend settlement of a wide variety of labor management disputes affecting the defense program. The members are expected to be named In a few days. George W. Taylor, Unversity of Penn sylvania professor of industry. has already agreed to serve as chairman until the board is or ganized. The new public will comprise six members each from industry, labor and the public. It will re place a smaller board which broke up two months ago when organized labor withdrew from all defense agencies, cliargin big business was running the show. The executive order today fol lows the recommendation of the national advisory board on mo bilization policy. This board has voted for the new agency in 12 to four decision, with indus try members dissenting. Man aeement wants the board re stricted to consideration ot strictly economic disputes such as those over pay. The president s order said the new board is empowered to taKe jurisdiction of any labor dispute not resolved by collective Dar- iraininz or by prior full use oi the goverment's machinery. Soviet Comment On Mac's Speech Moscow, April 21 OT The Literary Gazette, in the first So viet comment on General Mac Arthur's address to congress, said today the program MacAr thur proposes in the Far East is exactly the program being car ried out there by President Tru man. On MacArthur's first point I that Formosa must never fall to (communist) domination the publication asked: "But was the order on the seizure of t ormosa, that Indivisible part of China, really signed by MacArthur and not by Truman?" Concerning MacArthur's pro posal for intensified economic blockade of communist China the Literary Gazette commenta tor said it was Mr. Truman who demanded extension of the block ade to Hong Kong and, at the beginning of this year, proposed economic sanctions against t,m- na. ,',-, On MacArthur's proposal for naval blockade of the Chinese mainland, the publication asked whether American navy vessels were moving along Chinese shores without the knowledge of the president.. Allied Troops Continue Drive Upon Chorwon Encounter Heavy Red Resistance but Force Enemy to Flee Tokyo Anril 21 W Allied " troops slammed against heavy te resistance today in their drive on the Red Korean bastion of 3e Chorwon. or A U.S. eighth army communi- le que Saturday night said Chinese & forces were stubbornly defend- ing hill positions south and southwest of the transport hub. s Chorwon is 18 miles north of the border in west central Ko- e- rea. :t. Allied artillery overshot the d. front and spread explosive death le among several large groups of Reds moving south to reinforce or replace battered communist elements north of the Hwachon reservoir. , The big guns killed an esti mated 275 Reds in day-long sharpshooting with ponderous missiles. Reds Flee in Panle Several other Red troop con- : centrations were spotted fleeing north in panic. Allied warplanes pounded oth er Red units north of the reservoir. The planes flew 48 sorties. They met some communist anti aircraft fire. Allied troops drove north through the town of TTwachon, at the western end of the reser voir, without meeting a singla enemy soldier. The allies straightened their line from Hwachon due west. They made substantial gains against almost no opposition. . (onoladed on Page S, Column 7) Truman Cruises Over Week-end Washington. April 21 OT A drawbridge added itself last night to the republicans, south ern democrats, General MacAr thur and booing baseball fans disturbing the even tenor oi Mr. Truman's presidential life. Mr. Truman set out at 8:30 p.m. (EST) for a quiet week-end cruise in his yacni w imams- hnre. The president boarded the Williamsburg at the naval gun factory in Washington on the Anacosta river, tributary to the Potomac. The Williamsburg headed down the Anacosta. The South Capitol street draw hrldee started to open for the presidential yacht. Partly up, it stuck. The Williamsburg and the nresident turned back to the na val gun factory and didn't get into the Potomac until two nours later, when workmen got the recalcitrant bridge to work, Military Aid For Formosa Taipeh, Formosa, April 21 OT Nationalist China today formally approved appointment of a U.S. military assistance avisory group Formosa. The approval was a mere for mality. Negotiations have been under way for several months. Foreign Minister George Yeh said the mission to be known as MAAG probably will start operating early next month. It will operate as part of the U.S. embassy under Minister Karl L. Rankin. Rankin called on Yeh shortly before noon today to make the formal announcement of the mis sion's appointment. Yeh accept ed for Chiang Kai-Sheks government. The news was received with obvious joy by the public. Newspapers printed extra edi tions which were bought up at fast as they hit the street. The move brought new hope and heart to nationalist China. While its purpose ostensibly is to assist in safeguarding Formo- no one here Ignores the pos sibility that the arms being furn ished may be used eventually for an invasion of the communist mainland. 39 Nations Sign Pact Cuttina World Tariffs m f A-ii oi fpi Thlrlv-nine nations today signed agreement to the principle of lowering world trade barriers and cutting "nternational tariffs. They successfully completed nu "' . i. ..,iv, o-nh nthpr under these principles. merous avw'- " ,u. ...atl.flnn, in The signing ceremony cnaca seven inuiims conicr- the third international ence on world trade since the end of the war. Althougn de tails of the numerous agreements between the various countries remained a secret, an official an nouncement said a "substantial list of concessions" was made. Each country may make public the details of its agreement aucr Mav 9 The United States succcssiuny negotiated new tariff agreements with 17 key nations, rive oi these were the first since the war ended. They included west ern Germany, Austria, South Ko rea. Peru and Turkey. U. Sj. ac cords also were reached with Belgium. Luxembourg, The Ne therlands, Brazil, Canada, Den mark, the Dominican Republic, France, Indonesia, Italy, Norway and Sweden. The United States failed to reach agreement with Great Brit ain and four of the big Common wealth countries Australia New Zealand. South Africa and India. Despite secrecy, it was clear this failure was caused by Britain's insistence that her sys tem of preferential tariffs for the Empire remain intact, ine system was built up in 1932 as Brita n's effort to protect in Emnire during the depression The United States regards the nrefcrential tariff as a form of trade discrimination and wants everv nation to have an eve break in selling its goods to Em nire countries. The United States also failed to reach tariff reduction agree mcnts with Cuba and Guatemala But Carl Corse, state department expert and vice chairman of the 99-mombcr American delegation, said the U. S. got a "good agree ment" with Canada. Liquor Board Increases Staff Portland, April 21 OT The state liquor control commission decided yesterday to seek an in crease in its law enforcement staff in the wake of criticism by a Multnomah county grand jury. The commission instructed Ad ministrator William Hammond to try to get back personnel re leased two years ago when the commission's budget was cut by the state legislature. "In view of the added work in enforcement, it seemed not wise to have cut off enforcement per sonnel and every effort should be made to have them reinstat ed," Chairman Carl Hogg, Sa lem, said. The enforcement branch was reduced at that time by eight to 44 men and officers. The commission said earlier in a statement that It would stu dy the recommendations of the grand jury, but Ignored the sug gestion that Hammond be fired. At Its business meeting tne commission granted a club li cense to the Eagles lodge at Ba ker and denied club licenses to the Cliff House at Waldport and the Ranch Club at Pendleton. The Portland city council, meantime, lifted its freeze of li quor licenses yesterday. No li censes were issued while the council reorganized Its licensing department, naming a new chief. , u.g, WMthar Bar"-) Most orchardisti there were known.