Joniai
THE WEATHER
MOSTLY CLEAR tonight,
Wednesday. Low tonight, 55;
slightly cooler, Wednesday, high,
It.
63rd Year, No. 199
Entered u incond tl&u
Salem, Oregon, Tuesday, August 21, 1951
U . ages)
Price 5c
triRtter Salom, Oreton
Capital
HOME
EDITION
-ft-m
J
I
Control Board
Gives Warden
Full Support
' Orders Convicts to
Return to Work 96.
More Back on Jobs
By JAMES D. OLSON
The state board of control
Tuesday announced that it
would continue to operate the
state penitentiary and in a for
mal statement sent and broad
cist to all convicts Insisted that
tney "return to work immediate
ly," Members of the board also
gave . unqualified support to
Warden George Alexander.
"These fellows should know
they are off-base," said Governor
Douglas McKay, "and that this
board is unanimous in the opin
ion that a prison is no place for
a sit-down strike."
The other two members of the
board, Secretary of State Earl
T. Newbry and Slate Treasurer
Walter J. Pearson, endorsed the
governor's statement, which was
made after the reading resolu
tion of the Oregon Prison asso
ciation, also insisting that there
be an immediate return to work
by the prisoners.
Studying Applicants
Newbry said that the board
was studing applications for a
new warden, and would make
the selection in an orderly man
ner. He said that the board had
been contemplating for months
the change in the prison, where
by a new warden would take
over administration of the con
victs and the present warden,
George Alexander, would serve
as business administrator.
;. Pearson said he was not in
favor of any sit-down strike now
or in the future and said that
the board of control has been
trying "its best to solve the dif
ficulties at the penitentiary and
the present sit-down strike by
the prisoners isn't helping the
situation any.
Order Broadcast
(HoTwork by the convicts was read
over ine pnsuii iuuu spetmer uy
Tom McCall, the governor's sec
retary, shortly before noon,
There were unexplained cheers,
After McCall read the order
he met with the recently abolish
'ied inmate's committee. McCall
said that he talked with them
so there would be some group
.of communication. This commit
tee countered the board's com
imunication with three demand
which McCall said would be in
vestigated. He said he could give
the convicts no assurance the
I requests would be complied with.
(Concluded on Page 6, Column 6)
Slightly Cooler
On Wednesday
" Slightly cooler temperatures
are in prospect for Wednesday,
if that is any 'comfort to those
who believed Monday and Tues
day were a bit too warm. The
weather bureau states some low
clouds probably will be over
head for a time tomorrow morn
ing, although further clear skies
are in prospect after that.
' .Tuesday started out to be as
I A I
Warm as iviunuay, mc juuiiiius
minimum being 59 degrees.
The maximum for Monday
soared to 98 degrees. Actually,
' the mercury read 98.4, but any
fraction under the halfway
mark left it for the record at
98 degrees.
There have been two warm
er, days this summer. On June
29. and, July 11 the weather
bureau record shows a maxi
mum of 99 for both days.
Low humidity has made the
weather more uncomfortable
for some. The Monday low hu
midity was 14 per cent. At the
10:30 a.m. reading Tuesday the
humidity was at 42 per cent as
against 37 per cent at the same
time on Monday.
Except for the prospective
slightly lower temperatures to
morrow, there is no immediate
change due in the prolonged
dry spell. So far no rain has
been recorded for August, mean-
g additional gallons oi waier
ing used for lawns and gar-
in the city, and pastures
d fields in the countryside
ttine drier by the day, not to
ention the dangerous situation
the forests with the tlnder-
Hry conditions and low humidi
ties. No rain has fallen in the
Salem area since July 5.
feather Details
J- lifjralarc fti aim j.m.
jbri ywUrdty, ; minims Uy,
iotal -hr relplUtln: t: It
: : aormal. .!. snion rwllu.
T .(: normtl. H.M. litlrtt.
t Imi. Rnorl nr B. wlher Br-
Fires Continue
To Burn Forests
Of Northwest
Old Fires Uncontrol
led and New Ones
Break Out in Oregon
More and more of Oregon's
forests were being blackened to
day as fires continued to roar
through them. Weather men
gave little hope that the long
hot and dry spell would break in
the near future, predicting that
it would continue at least
through Sunday.
As old fires kept moving on
uncontrolled and now ones broke
out the state forestry depart
ment said that it appeared that
this would be the state s worst
fire season in many a year.
The fire that has been burning
in the Old Smith River burn
since last week is still spreading,
though parts of it have been tem
porarily controlled. It has cov
ered around 12,000 acres now but
at present is confined to the old
burn and has not gotten into new
timber.
Pistol River Blaze
Two camps have been set up
on that fire but the state for
estry department said Tuesday
morning that it had no idea as
to the number of men and the
amount of equipment now fight
ing the blaze. One look-out was
moved out as a safety measure
precaution and has been set up
at another point, where it is be
ing used more for. communica
tions than anything else.
(Concluded on Page 5, Column S)
Series of Quakes
Rock Hawaii
Honolulu, Aug. 21 (U.R) A
series of sharp earthquakes
rocked the Hawaiian islands to
day causing damage estimated
at $45,000 and injuring at least
two persons.
The temblors were recorded
at 12:57 a.m., Hawaiian time
(6:57 a.m. EDT), and another
sharp series were recorded at
1:31 a.m. Hawaiian time (7:31
a.m. EDT),
Roland P. White, chief ob
server at the coast and geodetic
magnetic observation station,
said the quakes were "at least
as large" as the ones that pre
ceded the spectacular eruptions
of Mauna Loa June 1, 1950.
Hilo Police Chief Anthony
Paul, who estimated the dam
age and reported the injured,
said damage from the earth
quake centered in the Hoonau-
nau-Nookena area on the east
ernmost island of Hawaii. This
section bore the brunt of dam
age during last year's eruption
of Mauna Loa volcano on the
island of Hawaii.
Paul said Hawaii county su
pervisor William Thompson and
his wife were "slightly injured"
when their home at Kaimanalo
paftially collapsed as they slept.
There were no other reports of
injuries, he said.
The craters of Mauna Loa
and Mauna Kea, two 13,000
foot volcano peaks rising above
the island, were still dormant.
High Red Official Dies
London, Aug. 21 VP) The
Moscow radio today reported the
death of G. A. Zemukhamedov,
president of the presidium of the
supreme Soviet of Tatar, auto
nomous Soviet socialist republic.
The broadcast said he died Mon
day.
McKay and Newbry to
Oppose Sta te Pay Hike
A proposed pay increase to accountant clerks was strongly
opposed by Secretary of State Earl T. Newbry and Governor
Douglas McKay, during the meeting of the board Tuesday.
The increase which will be considered by the state civil service
board at its next meeting, effects only three state employes,
but the two officials said grant-
ing of these Increases would be
immediately followed by de
mands for pay increases by per
sons doing similar work in vari
ous departments.
I don't think it is fair to
grant salary increases so short
ly after the adjournment of the
legislature," said Newbry. "A
year from now things might be
different, but these employes
should have taken the salary
increase request up with the
ways and means committee of
the legislature.
Newbry said that he would
appear before the civil service
board and oppose the request.
Governor McKay agreed that
the pay increases were not in
order now but State Treasurer
Walter J. Pearson did not eon-
a (fMw U W
Truman Seeks
More Controls
Washington, Aug. 21 (JP)
President Truman indicated to
day he is about to open a new
fight to get from, congress the
price and other control powers
he says are needed to combat
inflation.
At a White House meeting,
the President asked his national
advisory board on mobilization
policy, for advice on a message
to congress asking stronger con
trol authority.
When Mr. Truman signed the
present law on July 31, he de
nounced it as inadequate and
served notice he would ask con
gress later for changes. He said
in a statement at that time:
"We will not be able to hold
down rising prices under this
act, and I am going to ask the
congress to amend it to give us
adequate controls."
The advisory board on mobi
lization policy is ,.' headed by
Charles E. Wilson," the defense
mobilization director. There are
IB other members.
Presidential Secretary Joseph
Short disclosed that Mr. Truman
talked for 30 minutes with the
board.
"In the discussions," Short
said, "the President took up the
dificulties of administering the
price control features of the de
fense production act as amended.
."He asked the board to give
him advice in connection with a
probable mesage to congress ask
ing for further amendments.
Jap Peace to
Mean Red War
Tokyo, Aug. 21 tfP) The Peip
ing radio today quoted a Shang
hai newspaper as saying that if
Japan signs a peace treaty with
out Red China and Russia it
will mean "a declaration of war
against these two countries."
The broadcast monitored here
carried at length an editorial
from Ta Kung Pao, one of the
Chinese .newspapers which the
Reds took over when they seized
Shanghai.
"Legally, the newspaper said,
'after the conclusion of a sep
arate peace, a state of war would
still exist between these two
countries and Japan."
Red China has not been in
vited to the Japanese peace
treaty conference at San Fran
cisco next month. Russia will at
tend but is not expected to sign.
cur. He contended that the
board should make no protest
against the proposed raises and
held that the employes were
entitled to any pay increase that
could be given them.
It was decided that individual
members of the board would ap
pear before the civil service
board and express their views.
A residency program of train
ing of doctors in psychiatry and
neurology has been given of
ficial approval of the council of
medical education of the Amer
ican Medical Society with con
currence by the American Board
of Psychiatry and Neurology,
This approval will insure credits
be given to doctors who take the
course in an effort to obtain a
fellowship in Psychiatry.
(Concluded to Page i, Column I)
.. . .... : Eza
Holohan Body Exhumed Italian soldiers carry the flag
draped coffin of of OSS Major William V. Holohan from a
small rural cemetery near Milan, Italy, for medical examina
tion into causes of his wartime death behind enemy lines in
Italy. Local authorities are seeking the extradition of two
former U. S. soldier companions of Maj. Holohan after U. S.
defense department authorities charged them with the cold
blooded murder of their superior officer. (AP Wirephoto)
All Records Crashed
In Use of Water Here
More water flowed through the pipes, faucets and sprinklers
of the- Salem water system Monday than any other one day in
the history of the city.
In total gallons used during the day and in rate of usage at the
peak hour all records were crashed, and for the first time since
: the 10,000,000-gallon reservoir
Washington's
Financing Void
Olympia, Wash., Aug. 21 CP)
This.state operated on faith alone
today, its finances paralyzed by
a sweeping - court decision that
obliterated a revenue, measure
and the $680,000,000 biennial
budget.
' The door on Washington's cash
register was slammed shut by the
state supreme court with a rul
ing that a combination tax-ap
propriations bill enacted during
a special session of the legisla
ture was unconstitutional. Only
a special session, which will be
called quickly, can open the
drawer again.
"Logrolling," was the court's
5-3 description of the method
legislators used in combining a
4 per cent corporation franchise
tax with the appropriations
measure to insure its passage. A
regular session of the 1951 legis
lature went 11 days over its 60
day legal limit by the clock-stop
ing process. But it couldn't agree
on taxes and was recalled the
next week to spend another 10
days in special session before the
combination bill was produced.
The court disapproved of the 4
per cent corporation tax on two
counts. It violated the uniform
ity provision of the state char
ter and was discriminatory, the
judges held. The budget died be
cause it was passed under the
same title as the revenue raiser.
The corporation tax was in.
tended to partially stop the
steady drain on the state's gen
eral fund, which was slipping
some $2,000,000 into the red each
month. Governor Arthur B.
Langlie, a republican, insisted on
a tax measure to balance the
budget.
Birthday Party
For Margaret
Ballater, Scotland, Aug. 21 lP)
Princess Margaret, vivacious
sweetheart of the British Empire,
came of age today. Her 21st
birthday was greeted by Britons
everywhere but the celebration
at nearby Balmoral Castle was
a quiet family affair.
Tourists and local folk in this
neighboring, Scottish town made
it a festive occasion as friends
of the royal family including
some who may be eligible for
Margaret's hand came to take
part in the birthday party.
There will be no booming of
guns throughout the empire,
since Margaret is only fourth in
line to the British throne. But
local postal officials are bracing
themselves - for the expected
flood of congratulatory letters,
telegrams and presents.
Court circles have not disclos
ed what most of the presents
are. It Is known that she is get
ting a convertible coupe, and
the traditional pearl to add to
the matched string started when
tht was born.
was built on Rural avenue it
failed to fill completely duringl
the night because of the heavy
usage up to the time people went
to bed.
The total used during the day,
said Manager Carl Guenther,
was approximately 20,500,000
gallons. And at the peak of the
day's usage at 8 o'clock Monday
night Salem residents were us
ing water at the rate of 36,ip0.
000 gallons a day, or 25,000 gal
lons a minute. That continued
until about 9 o'clock when resi-
denters began to shut off the
sprinklers for the night.
Never before, said Guenther,
has the reservoir failed to fill
to capacity during the night, but
Tuesday morning the surface in
the reservoir was two feet be
low the top, which was a short
age of 1,100,000 gallons.
(Concluded -on Page 5, Column 4)
Ask $400 Million
For Flood Relief
Washington, Aug. 21 (P)
President Truman has asked
congress for $400,000,000 to help
the flood-battered middle west
and to finance a new national
flood disaster insurance pro
gram.
He told congress in a message
last night the situation was a
"grave emergency" and asked
that the money be provided as
quickly as possible.
Vice President Barkley
promptly referred the request
jointly to the senate public works
and appropriations committees
to speed action. Ordinarily each
would study the matter sepa
rately. .
The relief money would be
used to pay flood victims of
Kansas, Missouri and nearby
states for part of what they
lost tn the July floods; to guar
antee liberal loans for rebuild
ing homes, farms and factories
and to help states and cities par
ticipate in the rehabilitation
HDiOTurt
In Jet Crash
Fort Dix, N. J., Aug 21 0P) -
A flame-enveloped jet plane
raining fiery death as it fought
a losing battle for altitude-
plowed into a group of soldiers
yesterday, killing twelve men
and injuring 21.
Twenty-one other soldiers
were burned or injured as the
T-33 air force trainer plane
crashed moments after taking
off from nearby McGuire air
base. The plane's two-mancrew
perished in the wreckage.
Among the dead soldiers were
Pvts. George W. and Robort W.
Poole, 22-ycar-old twins from
Camden, N. J., who were In
ducted into the army about four
months ago. George was killed
instantly.
Their widowed mother, Mrs.
Hazel Poole, was preparing to
leave for the post hospital late
yesterday when word was re
ceived that the critically injur
ed Robert also had died.
Hurricane to
Strike Central
Mexican Coast
130 Mile per Hour I
Wind Whirls Toward
Tampico, Vera Cruz
Mexico City, Aug. 21 W) A
refortified tropical hurricane
with a 130-miIe-an-hour wind
wallop stormed through the
southwest Gulf of Mexico today
toward the central Mexican coast
and its oil fields.
Overnight it had regained most
of the force with which it raked
Jamaica last Friday and took 135
lives.
Along Mexico's tropical east
ern shore on the gulf, Tampico
and Veracruz, the country's two
biggest ports, took precautions.
But the hurricane if it kept
its present course during the day
was due to hit the mainland
about halfway between the ports
between 6 p.m., and 9 p.m. (E
ST). Both expected to be on the
outer fringes of the storm.
The weather bureau said the
full force was headed for the
Tuxpannautla area.
Tuxpan a Target
Tuxpan is an oil port of about
13,000 population about 135
miles up the coast from Vera
cruz. Nautla is a small town on
the coast between Tuxpan and
Veracruz.
The big blow crossed Jamaica
Friday, then hit the Yucatan
peninsula of Mexico yesterday.
It lost force over the sparsely
settled land and headed across
Campeche bay in the southwest
gulf.
In an advisory Issued at 6 a.m..
(EST) the weather bureau at
New Orleans said the center
would be swirling in the Gulf of
Mexico about 170 miles east of!
Nautla, a small town of less than
2000 population.
(Concluded on Page 5, Column 8)
More Pickers
Badly Needed
High temperatures have re
sulted in the rapid ripening of
all sorts of farm crops with a
consequent demand for addi
tional harvest nands.
It was reported at the Salem
employment office, Ferry and
South Cottage streets, Tuesday
morning that the supply of labor
did not equal the demand by
some 300 persons, Between 25
and 30 growers had convey
ances at the employment office
and although but one went home
empty handed, the others did not
begin to secure their require
ments.
It is believed a number of
male adults have gone into the
forest fire fighting business, thus
curtailing their services in the
bean and cucumber patches, hop
yards and other seasonal crops
departments.
It may be that the hot weath
er has prevented some would-be
pickers from reporting, al
though it is pointed out that in
many instances the open fields
are little warmer than the back
yards. In any event an addition
al 300 persons are badly needed
to handle the crops at this writ
ing.
Defense Housing Bill
Sent to White House
Washington, Aug. 21 (P) The house today passed and sent to
President Truman a $1,635,000,000 defense housing bill promising
lower down payments on low and moderately priced dwellings.
The general purpose of the bill is to encourage private builders
to erect housing for the thousands who have swarmed into defense
centers and areas around mill-
tary installations
The bill was originally sought
by the administration, but the
amounts for various housing
programs were' trimmed.
Also it carries a provision
which would require that the
present tough credit restrictions
on low and medium priced hous
es be relaxed. This is separate
from a provision permitting the
president to relax the curbs in
defense areas.
The bill would authorize a
$1,500,000,000 expansion of the
government's authority to in
sure home mortgages. This and
other features are designed to
encourage private industry to
build what housing is neces
sary. However, the bill also pro
vides $50,000,000 for public
housing to be built by the gov
ernment if necessary, and $60,-
000,000 for such community
services as waterworks and
sewers in communities unable
to finance them locally.
New Proposal
In Oil Dispute
Given to Iran
Tehran. Iran. Aug. 21 W)
Britain's delegate today offered
Iran a new proposal to settle the
grave British-Iranian oil dis
pute and gave the Iranians until
noon tomorrow to take it or
leave It.
The new British move follow
ed the abrupt withdrawal by
British Delegate Richard R.
Stokes of the previous British
proposal revolving about a 50-50
split of Iranian oil profits.
(In London, the foreign of
fice, confirming the new offer,
announced that Prime Minister
Atlee has summoned his cabinet
to discuss the oil negotiations.)
Stokes announced he had of
fered compromise possibilities
which concern the retention of
British management at the
Abandan refinery and the oil
fields. These had been rejected
by Iranian Premier Mohammed
Mossadegh. Stokes then with
drew Britain's proposals and
substituted a new overall one.
It Included the problem of em
ployment of British personnel.
If the Tehran government re
jects this, Stokes probably will
return at once to London.
Promise Probe
Of Spy Group
Washington, Aug. 21 ffl
Senate investigators promised
today to explore fully a story
that a communist spy ring with
some Americans in its ranks as
sured Moscow before Pearl Har
bor that Japan would attack the
United States.
Mitsusada Yoshikawa, director
of special investigations for the
Japanese attorney general, told
the story in sworn testimony be
fore the senate subcommittee on
internal security yesterday.
Senator Ferguson (R., Mich.),
a member, and Robert Morris,
counsel to the group, said tne
entire matter will be gone into
deeply at further hearings.
Yoshikawa said Richard Sorge
whom he sent to the gallows as
head of the spy ring, named the
late writer Agnes Smedley as a
U. S. member of the ring. But
Sorge never gave the names of a
"young officer connected with
the American consulate at Shang
hai" and an American newspa
per correspondent who also were
members, Yoshikawa said.
The witness said Sorge con
fessed that his mission was (1)
to spy on Japanese and German
war plans, and (2) to induce Ja
pan to strike at the U. S., Brit
ain, France and The Netherlands
but not at Russia, if she struck
at all.
Polish Partisans
Harrying Commies
Berlin, Aug, 21 (A") A young
Polish refugee said here yester
day that the Russian forces try
ing to keep Poland in line are
being harried by a growing band
of armed anti-Red partisans.
Josef Kowalskl, 19-year-old
refugee from Polish secret po
lice, told a news conference that
the partisans have been making
open attacks against Russian ar
my installations and Soviet sup
ply trains crossing Poland to
East Germany.
Also included is a $10,000,
000 fund for buying housing
sites in isolated areas, and one
of $15,000,000 for loans to as
sist producers and distributors
of prefabricated housing.
The relaxation of housing
credit restrictions would force
a modification of the current
regulation "" which operates on
a sliding scale.
Down payments would range
as low as 4 per cent on the pur
chase price of a house costing
$7,000 or less on a GI loan. The
GI down payment on a house in
the $7,000-$10,000 range would
he 6 per cent, and on one In the
$10,000-$12,000 class it would
be 8 per cent.
A 10 per cent down payment
would be required on a $7,000
house on which the federal hous
ing administration insured the
mortgage, or which was conven
tlonally financed. This would
step up to 15 per cent down on
a $7,000-$10,000 house and to
20 per cent on one costing from
$10,000 to $12,000.
Nam II Rejects
Allied Reply
Upon Ambush
Angrily insists Red
Chinese Killed and
Deadlock Tightened
UN Advance Base Below Kae-
song, Korea, Wednesday, Aug. It
(U.R North Korean Gen. Nam II
rejected In angry terms last night
a UN reply to his complaint that
allied troops violated the Kae
song neutral zone. It appeared
that cease-fire negotiations had
come to another crisis.
Nam had alleged that UN
troops fired on a communist mil- '
itary police detachment inside
the zone Sunday. Vice Adm. C.
Turner Joy, chief UN truce ne
gotiator, replied that he was in
vestigating the complaint but
that a preliminary report "does
not substantiate the charges you
have made."
Pyongyang radio said last
night that Nam had told Joy that
his message was unsatisfactory.
Demands Punishment
'I demand the heaviest punish
ment for those responsible for
the neutrality zone violation and
again demand assurance that
such incidents will not be re
peated," Nam said.
There was speculation at this
base whether Nam, the chief
Red truce negotiator, might call
off armistice negotiations unless
he received what he considered
a "satisfactory" reply that Is,
an admission that UN troops
were guilty of the neutrality
breach.
(Concluded on Page 5, Column )
South Koreans
Swept Off Hill
U. S. 8th Army Headquarters,
Korea, Aug. 21 (IP) South Ko
rean troops attacked- strongly j
held ridges north of Yanggu be
hind a curtain of artillery fire to
day, but made little headway.
Front line dispatches and of
ficial announcements reported
the South Koreans seized the
ridge of one hill but were swept
off two others by Red counter
attacks.
Associated Press Correspon
dent George A. McArthur re
ported from the east-central
front that battle raged through
out the day northeast and north
west of Yanggu.
On the far eastern flank, Mc
Arthur said, attacking South
Korean troops secured north
south ridgelines near Kansong
exctpe for one hill recaptured
my a communist counter-attack
Tuesday.
Large numbers of communist
troops were reported massing a
few miles south of the battlcline
above Yanggu. McArthur said
there were reports the Reds have
committed some of their reserve
strength to defend the craggy
ridges.
Replacements poured steadily
into Red lines during the four-
day battle. Allied artillery ham
mered them incessantly, Fog
hampered air support.
Small Red patrols attempted
to infiltrate the allied battle line.
Only light contacts were re
ported along the rest of the Ko
rean front.
Chiang Fires 2
Delegates in U.S.
Taipch, Formosa, Aug. 21 VP)
The Chinese nationalist gov
ernment fired two of its repre
sentatives in the United States
today and ordered them home
immediately.
First, Generalissimo Chiang
Kai-Shek suspended Lt. Gen.
Mao Pang-Chu as deputy com
mander of the Chinese national
ist air force and delegate to the
United Nations military staff
committee.
Chiang in a mandate accused
Mao of "derelection of duties and
disobedience of orders." A gov
ernment spokesman said Mao
had failed to account for $19,
440,000 of funds to buy equip
ment for the air force and to
train its personnel.
Next, air force headquarters
announced dismissal of Col.
Hsiang Weih-Slan, executive as
sistant to Mao, and ordered him
back home to face charges of
derelection of duty and suspicion
of being a communist agent.
It was doubted here that either
would return voluntarily to For
mosa. Obeservers said lt is more
likely they would leek to stay
in the United States, in which
case the government might try
to obtain their extradition.