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.