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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (May 21, 1951)
Journal THE WEATHER. FAIR TONIGHT and Tuesday. Little change in temperature. Low tonight, 44; high Tuesday, 80. HOME i ID IT 0 INI 63rd Year, No. 121 S?JiE?&SX Salem, Oregon, Monday, May 21, 1951 Price 5c Capital jk Snyder Tells of Tax Collecting From Evaders Treasurer Tells of Making Gamblers and Racketeers Pay Up By JAMES D. OLSON Approximately $258 millions were collected from gangsters and racketeers in unpaid income taxes by the internal revenue service during the past year, ac cording to John W. Snyder, sec retary of the treasury in Salem Monday. The secretary, accompanied by Mrs. Snyder, flew to Salem from Los Angeles to participate in two savings bond ceremonies the presentation of a treasury flag to Salem as the newest de fense bond city and the dedica tion of the replica of the liberty bell which the secretary award ed to Oregon last j;ear. Commenting on recent pub licity, growing out of the Kefau ver committee hearings, concern ing income tax law enforcement, the secretary declared: Racketeers Fungle Up "The Internal Revenue Serv ice has an excellent record of enforcement results against tax evaders of the racketeer and gambler type. And we are going after a still better record. "The commissioner of inter nal revenue recently appointed a Texan, Brig. Gen. John B, Dun lao. to direct the operation of a chain of special racket squads across the country. These squads, under Gen. Dunlap's direction. will intensify our efforts to con vince all professional criminals that they must toe the tax line or else pay severe penalties." Snyder said that Dunlap will visit the northwest to confer with treasury officials as well as state and local law enforcement offi cers. Fighting Inflation The secretary said that the country seems to be giving in creasing support to three major steps in combating inflation. These, he said, were application of adequate controls', new federal revenue legislation and public concentration on spending less and saving more. "The necessary controls in clude the voluntary program for restraint of credit, now being conducted by the banks and oth er financial institutions," Sny der said. In connection with this pro gram, E. C. Sammons. who is chairman of the Oregon commit tee sponsoring the move, and who joined the Snyder party in Salem, said that the program was "taking hold very well in Ore gon." (Concluded on Pace 5, Column 7) Vandalism at Diversion Weir It is costing the city of Salem hundreds of dollars a year to pay for somebody'! vandalism at the Shelton ditch weir, City Engineer J. H. Davis said today. It happens often, and happen ed again over this week-end. The weir is on state property about three-fourths of a mile southeast of the Oregon State penitentiary. But no one at the prison is blamed for it, except that Davis thinks prison guards might keep a more watchful eye on the spot. Also, says Davis, "it isn't the work of kids." His conclusion is that someone along Shelton ditch who wants more water in that stream is causing the trouble, Although the weir is on state property the city is responsible for its maintenance because it is part of the southeast Salem flood control project that was com pleted a few years ago. Its purpose is to control the flow of water in Mill creek and in Shelton ditch. Several Salem industries own water rights and have to be supplied accordingly They include Thomas Kay Wool en mills, Oregon Pulp Ic Paper company, City Ice works and the city itself. "I know of no reason for tear ing out the timbers to send more water down Shelton ditch," Da vis said, "unless they just want to see more water in the ditch, They make it worse by throwing the planks into the stream. They float away and we have to cut new ones. Weather Details ttaxtmB ?Mttr4r Tit aifiiimam i Jai, W. Tatal S4-kir rtelaltaUam far aantfe: 1.3ft; normal, lJU. Bcaian era- clpltatlan, 48.41; fiannal, U.U. RItit nelfht, 1.1 tX. (Baawrt f U.S. Waathar Bnreaa.j Fair Trade Laws Held Illegal By High Court State Statutes DoN Not Bar Stores From Cutting Prices Washington, May 21 WP The supreme court ruled today that state "fair trade" laws do not bar stores from cutting prices if the stores refuse to sign pricing agreements. Justice Douglas delievered the 6-3 decision which attorneys told the high court in advance would have the effect of killing the fair trade laws now in effect in 45 state. Such laws have been adopted by all states except Vermont, Texas, Missouri and the District of Columbia. They permit the fixing of minimum retail prices by agreements between manufac turers and retailers. Joining Douglas in the court majority were Chief Justice Vin son and Justices, Reed, Jackson, UlarK ana Minton. Affects Only Signers Justice Frankfurter wrote a dissenting opinion, in which he was joined by Justices Burton and Black. Justice Jackson wrote a separate opinion con curring with the majority. Jus tice Minton joined in this opin ion. - Today's case with far-reach ing possibilities dealt with an attack on Louisiana's "fair trade" , law by Schwegmann Brothers, operators of a super market in New Orleans. The (concluded on Page 5, Column 8) Controls Slash attle Receipts Chicago, May 21 VP) Cattle receipts at the nation's stock yards were generally light today as price controls went into effect on live beef animals. At 12 principal markets, the u. a. department of agriculture estimated that 41,100 cattle were received today. This compared with 77,700 head on deck last Monday, and 68,800 for the date a year ago. The new cattle price order re quires packers to limit average prices of their cattle purchases to a level 10 per cent below the averages for January. The order was put into effect yesterday, but today is the first day of trading under it. iauie mercnants said it was too early to say whether the low receipts resulted from arbi trary effects of the price control order. Light receipts today, they said, were expected after last week's rush of finished animals to market. Heavy receipts last week brought cattle prices down to a point where no sharp effects of the order were expected to ap pear in the fiscal statistics. The price rollback on live cattle is only a part of the gov ernment's program designed to bring about price reductions of approximately 10 cents a pound for beef in the butcher shops by Oct. 1. Already in effect are price ceilings on wholesale and retail beef sales and additional roll backs in prices of both cattle and meat will be made Aug. 1 and Oct. 1. Daylight Saving Case Thrown Out The Oregon State Grange suit thrown out of court Monday morning by Circuit Judge George R. Duncan, who ruled that Governor Douglas McKay had power to put Oregon on daylight saving time on April 29. He further ruled that the grange had no capacity to bring the suit, and that the grange complaint didn t stated- enough facts to constitute a cause of action. The grange contended that Governor McKay had power to order daylight saving time only if all neighboring states had it, too. It was further claimed that he could order fast time only by showing that the econ omy of the state would be dam aged by remaining on standard time. "The act in question (the 1949 law) clearly requires the exercise of discretion by the governor before proclaiming a change of time and the only ministerial duty on his part is the issuance of the proclama tion varying standard time after he has found that the economy and general welfare of the state are placed at material disad Adonis Asks Courts' Mercy Hackensack, N.J., May 21 Joe Adonis, labeled one of the nation's seven czars of crime, pleaded no defense today to a series of New Jersey gambling charges, and threw himself on the mercy of the court. Entering similar pleas were four alleged hirelings of Adonis, who were scheduled to go on trial with him on charges of op erating a $1,000,000,000 dice dy nasty in North Jersey. Superior Court Judge J. Wal lace Leyden said he could see no difference between the no de fense pleas and guilty pleas and he announced he would accept them. John E. Selsern, lawyer for the five men defendants, said the pleas were the result of "tre mendous negotiations." He added that Adonis and an other defendant, Salvatore (Sol ly) Moretti, alleged leaders of the lush gambling operations, never admitted" that they were principals in the operations of three dice palaces in this North Jersey area. "Nevertheless," he said, "they are willing to throw themselves upon the court. Dapper underworld mystery man Adonis, who has never spent a day in jail in his 48 years de- spite arrests tor numerous crimes, faces a possible maxi mum sentence of 18 years in prison and fines of $18,000. All five men pleaded to a charge of gambling conspiracy in the operation of the dice games and to three other indict ments charging them with main taining, disorderly houses for gambling. Russian General Leads Chinese Reds Taipeh, Formosa, May 21 VP) A nationalist Chinese news agen cy said today Bussian Gen. Mir- esokov is in virtual command of Chinese communist forces in Ko rea. The China Union press said he visited the front and conferred with top Chinese commanders and political commissars. The agency said Miresokov commanded the troops which took Manchuria from Japan in 1945 and helped the Chinese Reds occupy the country. Mir esokov is a translation from the Chinese and the spelling may be incorrect. Other nationalist reports said the Chinese Reds were sending 45,000 additional troops to Ko rea of Court attacking daylight saving was vantages by lack of uniformity between standard time in Ore gon and the time in general use in the states bordering on Ore gon," Judge Duncan's decision sets forth. It is contended that the act requires every bordering state have a different time in use than does Oregon before the gover nor can proclaim the change but the act docs not so state, and in view of its plain purpose which is to seek the elimination of any disadvantage resulting to Oregon irom any lack of uni formity, it should not be so con strued. It appears from the com plaint itself that a lack of time uniformity exists and the gov ernor having exercised his judg ment and made the finding au thorized by the act, this court cannot intervene." Treasury Secretary Visits Salem Pictured on his arrival in Salem to present a defense bond flag to the city is Secre tary of the Treasury John W. Snyder, fifth from left. In the group with Snyder are, left to right, Sidney L. Stevens, Marion county director for defense bonds; Mrs. McKay, wife of Oregon's governor; Mayor Al Loucks; Mrs. Snyder, who came with her husband; Secretary of Treasurer Snyder; Gov. Douglas McKay, and Herb Barker, Salem director of the payroll defense bond sales. Defense Bond Flag Presented To Salem By STEPHEN A member of President Truman's cabinet came to Salem today to reward the city for John W. Snyder, secretary of see on your folding money, in person presented the city, through mayor ai JjOucks, wan a aetense Bond Hag. Oust Oklahoma I A&M Professors Oklahoma City, May 21 VP) A group of Oklahoma A&M pro fessors ordered fired for not tak ing the state's complete loyalty oath planned today to appeal to the state supreme court. Their chief hope was that the high court would agree with State Attorney General Mac Q. Williamson that portions of the non-communist oath are uncon stitutional. District judge W. A. Carlile Saturday ordered those fired who signed an altered oath or refused to sign at all. Some pledged allegiance to this country and swore they weren't communists or members of organizations labeled subver sive by the U. S. attorney general. But they struck out a provision requiring a promise to bear arms in defense of the country, which the attorney general ruled was unconstitu tional. The professors claimed religious scruples against fight ing. Under the district court rul ing, no public employes can re main on payrolls after May 9 when the oath law became effec live without taking the pledge. Judge Carlile handed down the ruling in a suit by Paul W. Updegraff, a Norman attorney who forced an early court test. Seven protesting Aggie profes sors and employes intervened as parties to the suit. And several others, at A&M and the University of Oklahoma are certain to be in the same situation. The exact number isn't known, since officials declined to make them public and pay rolls haven't been checked. 1905 Soldiers Land from Korea San Francisco, May 21 (U.B The U.S. General Howze, carry ing 1905 army officers and men on rotation from Korea, slid un der the fog-shrouded Golden Gate bridge and docked at Fort Mason at 7:50 a.m. PDT today. The group, second to be re turned to the United States by way of San Francisco, was met by families and friends of the men aboard. Six small craft met the ship as it sailed into ban Francisco bay. The Fort Mason army band played "California here I come as the ship pulled alongside the pier. There were no welcoming speeches but MaJ. Gen. James A. Lester, port of embarkation com mander, moved among the men as they debarked and talked to them individually. The enlisted men immediately boarded the ferry boat Ycrba Buena for their trip to Camp Stoncman where they will be processed and given furloughs The officers were to be process ed at Fort Mason. A. STONE outstanding achievement. the treasury, whose signature you The flag signifies that over 80 per cent of the payroll es tablishments in Salem, are sign ed up under the payroll defense bond plan The ceremony took place at noon at the last seasonal Mon day luncheon meeting of the Chamber of Commerce, in the Lapnol room at the Senator ho tel. "The plan used in Salem.' said Secretary Snyder in a brief presentation speech, "is one of the series producing efforts in the defense savings bond plan And he spoke of the many in terests, financial and industrial. "that recognize that this thrift effort is important in the na tional economy, for the bonds have been sold on the basis of thrift." On the importance of savines he said that "some $200 billion of savings in possession of the American people after World War II was the most important factor in preventing inflation." "In Salem," he concluded, you have enlisted 85 per cent of your payrolls in the bond savings plan, so you are entitled to presentation of this flag by the treasury of the United States." Mayor Loucks was brief in the acceptance. "Speaking for all of the 43,000 people of Salem," ne said, I want to declare that it is a distinct honor to have this flag presented to us, and very distainct honor to have it presented by the treasurer of the United States." (Concluded on Page 5, Column 5) Hurricane Hits North Carolina Wilmington, N. C, May 21 0P) The season's first hurricane moved northward today, leaving in its wake abnormally high tides and dense fog but no physi cal damage. The storm passed Cape Hat- teras shortly after midnight last night. It was moving in a north- northeasterly direction at about 15 to 16 miles an hour. It was reported about 70 to 90 miles off shore. An advisory issued by the Raleigh weather bureau late last night said the storm's move ment northward had picked up speed and that it made a slow turn to a more north-easterly course. Strongest winds were esti mated at 90 miles an hour over a small area near the center of the storm, with gales extending outward 60 miles in all direc tions. ADnormauy high tides were expected along the upper North Carolina and Virginia coasts to day. Small craft warnings were still up from Block island south ward to Cape Hattcras, but were lowered south of Cape Hatterai last night. Coast Guard stations along tne coast said no damage had Deen reported. At Wilmington, high tides lashed the beaches yesterday but even then a few hardy bathers ventured into the surf. A dense fog blanketed a long stretch of coast inshore from Cape Hatteras, but there Shattered Reds Withdraw From Half of Korean Front Bradley Takes Direct Issue With MacArthur Washington, May 21 VP)' Gen. Omar N. Bradley testified today the United States would have to "strip" its military pow er elsewhere to carry out Gen Douglas Macarthur's Asiatic program. The chairman of the joint chiefs took direct issue with MacArthur, who previously had told the senate armed services and foreign relations commit tees his proposals for hitting di rectly at Red China would not require much additional mili tary strength. Bradley told the same groups that the joint chiefs had recom mended MacArthur's dismissal as Pacific commander because the five-star general was "not in sympathy" with administration plans to contain the war to Korea. Opposes China Blockade Bradley said the joint chiefs feared that if it was not confined to Korea we might find our war enlarged beyond our capa city to carry it out successfully. MacArthur proposed a block ade of China, bombing of Man churian supply and troop bases and use of Chinese nationalist troops. Bradley has opposed all these proposals. (Concluded on Pare 5, Column 6) Israel Defies Request of UN Tel Aviv, May 21 VP) Israel in "determined to Bring the drainage of the Hulch swamp to a successful conclusion despite all obstacles," according to government spokesman. One of the "obstacles" is United Nations Security Council resolution, adopted Friday, or dering a temporary halt to the project until Israel and Syria reach agreement on the disputed border area. Work on the project was re sumed yesterday without inter ference. Syria contends that the drain age work violates the truce agreement with Israel. The council resolution followed re current fighting between Jews and Arabs in the region. Meanwhile it was learned that Russian Ambassador Pavlov Yershoff conferred hero today with Dr. Walter Eytan, general about the matter. The Soviet Union abstained in the Security Council vote. Officials said the actual coun cil order has not yet arrived here. The official interpretation here to the order is that it is a "di rection" to Maj. Gen. William Riley, U. N. chief of staff, seek an agreement between the Palestine Land Developmen company, which holds the Huleh concession, and certain Arab land owners whose work is af fected by the project. Prison Expert Asked to Survey Penitentiary Austin MacCormack. nationally-known prison expert, has been Invited by the state board of Oregon stale penitentiary in MacCormack is executive director of the Osborne foundation and professor of criminology at T-In Vina marln B,,tM,Ava nf m a nv state and federal prisons, mak ing a notable record when he wrested the New York City pris on from gangsters who were running it. Governor Douglas McKay last week instructed Roy Mills, sec retary of the board, to write to MacCormack to ascertain if he is available for the survey and to designate the time he could come to Salem for the survey. A slate senate committee in vestigated the prison during the recent legislative session and made numerous recommenda tions, among them a study of the prison operation by a national expert. Numerous recommendations of the senate committee have been placed In effect by the board but Mills said that the board feels the specific advice is required at this time in connection with ef U N Casualties 161 8 During 5 Days 0 Battle Washington, May 21 OT The defense department said today the United Nations forces in Kor ea lost 1,618 dead and wounded during five days through May 20 of the Red offensive. A spokesman said this compar ed with 58,000 Red troops killed and wounded. The department said the U. S. casualties were 960. including 134 killed in action and 826 wounded. It said no accurate figures are yet available for the number of missing in action. The figures for U. S. and U. N. battle casualties are based on a spot check of preliminary re ports received from the Eighth army, a spokesman said. South Korean forces lost 48 killed and 497 wounded. The to tal of other United Nations troops casualties was listed as 22 killed and 91 wounded. Iran Rejects British Proposal Tehran. Iran, May 21 VP) Prime Minister Mohammed Mos sadegh has rejected a British proposal to arbitrate the explo sive dispute over nationalization of the wealthy Anglo-Iranian Oil company. A government spokesman also told the parliament yesterday that Britain and the United States are pushing Iran closer to Rusiia and a communist revolu tion by opposing oil nationaliza tion. The speaker, National Front Deputy Hosscin Makki, raised the. threat of a holy war if the British use force to resist the loss of their . big investment in the Abadan refinery and the nearby oil wells in southern Iran. The government's letter to the oil company, while refusing to arbitrate, called on the company to send representatives to plan the method of taking over the southern Iranian installations. It was the first time since Mossa degh's sudden rise to power three weeks ago that he has offered to even talk over the naitonanza- tion situation with the British. The company, declaring ex propriation is illegal, had asked the government to appoint its ar bitrator under terms of the 1933 concession agreement which pro vided all disputes be settled by an arbitration board. Replying for Mossadegh, RI nancc Minister Mohammed Ali Varastch, declared Iran had the sovereign right to nationalize the indutsry and rejected arbitration Automobile Injures Boy Dayton Calvin Smith, 9, Dayton, was slightly injured Sunday when struck by an auto mobile near the Dayton Buck eroo grounds. He is a son of Mr. and Mrs. Wilbur Smith. control to make a survey of the the near future. the University of California. torts to expand the prison's edu cational and vocational training program. However, if McCormack ac cepts the invitation to study the Oregon prison, Mills said, that he would not be restricted In any way in the scope of the sur vey. Mills said that the Osborne foundation had surveyed the Or egon penitentiary in 1940 and declared that numerous major improvements had been made at the prison since that time. The board is now seeking ca pable men to fill the vacant po sitions of prison school director and sociologist and the new job of prison recreation director. William Ryan, director of in stitutions said that he has had a number of applications for both positions and felt that he could make recommendations to the board late in June. Chinese Losses 60,000 Troops In 5 Days Battle Tokyo, May 21 VP) Reds be gan withdrawing from half of Korean central front today aft er losing nearly 60,000 men, by allied estimates, in their five-day-old offensive. , Lt. Gen. Edward M. Almond announced his Tenth corps kill ed or wounded 48,341 Reds on the cast-central front. Sunday's toll alone was 24,700, he said. the biggest one-day total of the war. Allied officers estimated 10,- 220 other casualties were in flicted on the west-central front, AP correspondent George A, McArthur reported. In this sector, Reds retreat ed through a driving rain. Front line dispatches Monday night told of communist withdrawals before advancing allies across more than 20 miles of the front. Abandon Beachheads Reds were reported abandon ing their bridgeheads below the Pukhan and Hongchon rivers. and pulling back toward Chun chon in the center. Most of the Red casualties were inflicted by the U. S. Sec ond division, which the commu nists set out to destroy. The Eighth army said the Second division killed or wounded 37, 750 Reds in five days. "We've taken the starch out of the offensive," Almond said. And I fell certain that if they come at us in even greater num bers we can handle them again," (Concluded on Pnge S, ' Column 6) Gl Units Praised By Ridgway Washington, May 21 VP) Gen. Matthew Ridgway, U. S. Far Eastern commander, today praised "the superior spirit and conduct in battle" of all Amer ican units, particularly the army's Second division. The commendation came in a message to Defense Secretary Marshall and the joint chiefs of staff. General Ridgway said that the Second division, command ed by Maj. Gen. C. L. Ruffner, had "inflicted losses which con servatively estimated exceed . . 20 times its own." The supreme commander in cluded the First South Korean division in his general com mendation. The second U. S. division bore the brunt of the communist of fensive last week. Ridgway said "The profes sional competence, the gal lantry and the fighting spirit of General Van Fleet's Eighth U. S. army and its supporting air force and naval forces" are an inspiration to the American people. Arden Assembly For Europe's Aid Arden, N. Y., May 21 VP) A group of prominent Americans gathered here today under the sponsorship of Columbia univer sity to try to clear a path through the fog of debate over U. S. help for Europe's anti communist nations. The gathering officially la beled as "The American Assem bly" was first proposed by General Eisenhower who is now leave of absence from his post as president of Columbia. Eisenhower believed the American pcoplo could make up their own minds on national and international issues if those is sues were made clear mat is the Job of the assembly: to make things clear. So some 80 men and women will sit down for a thorough review of the great debate that blew up early this year over the question of helping Europe to fight off communism. Although not on the agenda, the controversy between Presi dent Truman and General Mac Arthur, and more particularly the relative importance of Asia and Europe in the fight against communism, will inevitably fig- lure in the week of discussions.
