C apital it Jobf nal THE WEATHER SHOWERY, SOME clearing this evening; mostly cloudy, rain to night, Tuesday moraine; show ery by afternoon. Little change in temperature. Low tonight, 36; high Tuesday, 48. FINAL EDITION 65th Year, No. 40 Enuro m Mood din matur at ala. Ortcoa Salem, Oregon, Monday, February 16, 1953 ""J Price 5c Senate Passes Amendment to Referendum First Prolonged De bate of Session to Re quire More Signatures By JAMES D. OLSON In the first prolonged debate fn the senate this session, an ,1 effort tn renuire a nercentare'quor by the drink was passed 51 of signatures from three of the to 8 Monday by the house and four congressional districts in Mnt to the senate, the state to enable placing of the j Since the bill contains an em referendum on legislative acts or jergency clause, it would become initiate measures was voted down I la w as soon as the governor signs by vote of 17 to 10. lit. The debate centered on a mi- There was little discussion of nority report which concurred ; the measure, which provides for with the majority report in set- selling of liquor by the glass in ting the yardstick of signatures restaurants and hotels; private, on the total vote for governor in fraternal and veterans clubs; and place of the supreme court jus-Ion railroads and boats, tice but which opposed the re- At tne ,ame ti it aUow$ quirement of obtaining signa-lciubs to keep thelr ,ystems districts. Non-Partisan Line-l'ps The vote was non-partisan with many of the republican sen ators joining wiin senator the majority report. "The members of the majority committee are trying to ham string the initiative and refer endum," Senator Robert Holmes declared. "I think that when you require 5 per cent of the legal voters or any other percentage of signatures from any section, you will play right into the hands of special interests." Cites Referendum History Senator Gene Brown of Jose- u: ... ...U ika outline of the initiative and ref erendum in Oregon, telling of the corruption and graft In the legislature during the last two decades of the 19th century which he said led to such men as William S. U'Rcn, and former United States Senator Jonathon Bourne to work for direct legis lation by the voters. (Concluded on Page 5. Column 8) Reprisals on Stale Witnesses Washington VP) Sen. McCar thy, R-Wis., accused State De pumc IUUIIIJ, wuu auHpvucu nv; COStinB $10(1 to $400 tnnpll majority report, gave . hlrfift,,8 400' t0 sel1 partment officials Monday of!boo2e and j.m too oId to ,tart taking reprisals against witnesses; In a senate investigation, une oi them flared back that McCarthy was destroying morale in the foreign service. The angry exchange was be tween Boykin, acting director of the department's bureau of secu rity. It capped an inquiry by Mc Carthy's Senate Investigations Subcommittee into how it hap pened that a State Department security agent was shifted to a new job soon after telling the senators mai uutuuicwa the week of March 9. disapopcar from the department s federal Judge Irving R. Kauf secrct files. man scheduled the new execu- John E Matson, who said he tjon date for tne hu was shifted to a "pavement ...,, .... , ... Bounding" job. testified he bc - ieved the only reason was that," his superiors "felt possibly I might disclose the truth" about department files. Mixed Effects Of Decontrol New York VP) Decontrol headaches trouble some indus tries and leave others untouch ed. And the same goes for con sumers. Consumers in some areas are paying more for gasoline to day. In other areas oilmen are more worried about price weakness and surpluses which may lower fuel oil prices shortly. The auto industry seeking more steel and other metals may still have to wait Its turn a while longer. Washington says that all priority tickets for the second quarter must be Vnnnrnd first, whether they've been presented to the steel; Both gasoline and fuel oil mills yet or r.ot. ; prices have gone up In Salem. And since it takes nearly I With increased gasoline prices two months for steel orders to i becoming effective today auto- turned into delivered metal. lm.ob,lc ownors probably will pay few steel users will be getting! any more than at present be fore April and not much more probably before June. .,..,, nK,,.j ,onn few price changes are predict - 4;n ulll lake care of that. Pgl Adlal " 77 Weather UetClllS M..in, w.tr. i:i mMmmm - ,,, 11. tui ti-knr rrtinuiKn: n Tain i,ii.ti. n "" r"i "!': h.i.nt. s im. ,iw..n .t i . nr.m.r House Passes Liquor by Drink Bill 51 to 8 Emergency Clause. Makes it Law as Soon' As Governor Signs By PAIL W. HARVEY, JR. (AsioeUted PrtM CorrMpondnt) Legislation to give Oregon II- out of their own bottles. This provision was fought by the res taurants and hotels, which want ed an end to this club system. . tucn-ilocal Option Elections The bill permits any commu nity to vote out liquor by the drink in local option elections. The people voted last Novem ber to amend the constitution so as to permit liquor by the drink, instructing the legislature to set up rules and regulations to ac complish it. The bill passed Monday was drafted by the house alcohol committee in cooperation with the state liquor commission. The commission will grant the licens liquor by the glass. 'Excellent Start' Chairman Russell Hudson, The Dalles, of the house alcohol com mittee, said "this bill is an ex cellent start toward giving the people their wish to have liquor by the drink in a conservative and orderly manner. We put the emergency clause on the bill because it is the wish of the peo ple to have it as soon as pos sible, Without an emergency clause, a bill doesn't become a law un til 90 days after adjournment of the legislature. The only voice raised against the bill during the debate was by Rep. Joseph E. Harvey, Port land, staunch prohibitionist, who said I'vo never vpt vntorf frival Air Station at St. Louis, now (Concluded on Pace 5, Column 4) Atomic Spies to Die in March New York VP) Execution of atomic spies Julius and Ethel ."":: 7. " -,-1". ? l"e "esl . "n jeeted. The couple was convicted nearly two years ago of con spiring to transmit atomic formation to Russia. They have been in Sing Sing prison's death house ever since. U. S. Marshal William Car roll said the date of the electro-1 cution may be March 12, and the hours 8 p.m. (PST). Rosenberg, 34, and his wife, 36, originally had been sched- uled to die in the electric chair' tnere January 14. But the judge postponed the execution to permit time for the President to act on their clemency appeal. President Eisenhower last week turned them down. Prices of Gasoline And Fuel Oil Go Up 131.2 cents a gallon for regular fuel and 33.7 for premium. iwithout direct information or;aboard 62 passengers and 57 Report by two of his colleagues This is on the assumption 0f instructions from headquarters, crew men from the Italian shlp cnticizing what it called extraya most companies operating here But all said they would go along before it was abandoned in pnee in the U. S. overseas mill that the increase will be 3 cents I with the increase. It might Demounting Mediterranean seas. Iry base Prgoram challenges However. Standard of Califor - !nia - whose Irad " being follow- located the increase might mcatea tne increase might be are- nas come ai a very ..y ana ,,,r ncip. , outposts, Gore said In an General McGrancry had approv- shortly be fore he retired as pres from 2 to 2', cents. The in-'inopportune time for those per- The " 000-ton Muir operated ln?erviewP Ru'ia mlgM r.gard ed the Truman order "on the ident. While president, Truman Idividual Standard retailer may. sons who use oil for heating by the U.S. Military Transport ;,ha. nn ,.,... ! understanding that it did not In-had twice vetoed legislation de- set his own price, it was said. . The wholesale price has gone. up about m cents, bringing the wnoiesaic prire to an average oi wholesale prire to an average of about 25 2 cents for regular and i,. mr preu.iuiii. nit rciau price paiu oy uie If I , mini Iff II 1 1 riiiMMiuh r New Capitol Lawn Monument Replica of the Liberty Bell, dedicated to "You, Free Citizen in a Free Land," recently placed on a granite base at the west approach to the capitol. This bronze bell, one of SO cast in France and donated by a number of the nation's leading corporations, was presented to this state under the direction of John W. Snyder, secretary of the treasury. All 46 on Crashed Airliner Die in Gulf New Orleans VP) A fourth liferaft from the National Air lines DC-6 plane that plunged into the storm-tossed Gulf of Mexico with 46 persons aboard 3 Die in Crash 01 Navy Plane Bedford. Pa. W Three per sons were killed Sunday night when a twin-engine Navy air plane crashed Into a mountain- side and burned, 18 miles west of this Western Pennsylvania community. Navy officials at Lambert Na- home base of the plane, identi- nome Dase oi in tied the dead as: Lt. William G. Schaufler, 29, of East Greenwich, R. I. He was attached to the Bureau of Aero nautics representatives at Mc Donnell Aircraft Corp., St. Louis. Lt. Edmund J. Stulce, 29, Wellesley, Mass., who was sta tioned at Lambert. Lt. (Jg) Arthur I. Rule, 29, civilian employe at Maiden Air Force Base, Mo. The Navy spokesman said the Beechcraft plane was en route back to St. Louis from Atlantic, City. N. J., after a routine cross- country training flight when the crash occurred. Gerhart Eisler in-L., , , n . Micrjnn in Kprljn I Wl t, ,: ,, m, till i"',r-'" , , ,t trace of Gerhart Eisler in Westj Berlin Monday. Allied and German officials 1 as well as the Jewish community here said the deposed Soviet Zone propaganda chief has not' turned up anywhere in the West, I as far as thev know. The West Berlin Telegraf quo ed informed circles Sunday as assuming wmi lie uau ueu to West Berlin to escape possible arrest in the spreading commu nist purge. consumer for gasoline In Oregon includes 8 cents sales tax, of rean war, rescued all 119 passen which 6 cents is a state tax and ers and crew members today 2 cents federal tax. i,rom tne sinking Italian liner. Except Standard of California, all distributors in Salem were ltoday or day or so later, they indicated nuiuiii ui tuiu wcamcr louiiy .ju mnro souineasi oil Oi- their homes or office buildings. Salem Fuel Oil Dealers as- sociation Monday morning an - nouncca an increase in o I nounccd an increase in prices effective at 8 a.m. Mon- ud). (Continued en Paf S, Column 1) u ; l was found empty Monday, "ap parently ending all hope for sur vivors." Three other life rafts all emp ty were found bobbing on the choppy waters Sunday by an ar mada of planes and ships that combed the waters and recovered 17 mangled bodies. The Coast Guard said the fourth raft was recovered "ac counting for all of the rafts and apparently ending any hope for survivors." The raft had never been Inflated. , '. - The Coast Guard said even if survivors had managed to get on the rafts that the rough wa ters would have probably wash ed them overboard. The 1 1 1 f a t e d four-engined plane, flying in 100-mile-per-hour winds, was en route from Tampa, Fla., to New Orleans when it crashed last Saturday af ternoon less than five minutes from possible safety. Alaska Crater In Full Eruption Kodiak, Alaska, (Pi One of Alaska's slumbering volcanoes awoke with a roar Sunday in an eruption that sent a column of smoke nearly six miles into .the air. Ash and smoke filtered into ..... Jl.l'?Jly region." Mondav "thi w fabled Mount Katmai in 1912.lslr" moving In over the week- r,... ...u..i... , end. wiicuier uiu vuicano was Katmai or one of two other long- threatening peaks in the Valley t innnn c, 1 . . " uiiiunra was nui uc- crmincd Immediately, nur whs mere inimeuiuie ZZVLX'L "llZu? 'I1 !;:"" ."h "'H-hour period ending at 10:30 .. , . . 'a.m. Monday, .79 of an Inch be- 'T"1':1" measurer, .oi oi an men oi the eruption. They said it was, "'-"" muu.u imuihi. r,i.o-.,..-. ...i.n i..... ... ..! cjnj f h Jmok mountain ,atcr Sflid jt would8be Moun, Trident or Mount Mageik. Troopship Saves' 119 on Liner Naples. Italy U.B The Amcrl- can troopship Gen. H. C. Muir, loaded with United Nations sol diers coming home from the Ko- l "pomania, radio reports said The Muir reported it tcokl(u- lenn.) said Monday that a I The liner's operators here said .1, ' S.. , a i c r Z ., ,,S " " . c ' 'rvice had intercepted the Tri - pomania s sua. ' The American vessel changed course ana racea to tne aid oi the crippled Italian ship. i ne Muir was the Iirst ship I to reach the liner a side House Group Rejects Funds For Defense Asks Use of Unspent Money for Army, Navy and Airforce Washington, UP) A Defense Department request for $1,200, 000,000 in new fnnds for the current year was rejected in full by the House Appropriation Committee Monday. The committee said the De partment should use available funds to finance the programs for which the new money had been requested. Most of the new money sought was for Army, Navy and Air Force military pay, increases In which were voted by Congress since the last defense depart ment budget was approved. Cleared for Debate The request for additional funds came from former Presi dent Truman before he left of fice last month. In some cases, President Eisenhower revised the requests, but In others he made no changes. The defense fund requests were considered along with rec ommendations for additional money for numerous other agen cies. The committee action clear ed for floor debate Tuesday the first appropriation bill of the 83rd congress. In aU, congress was asked to aprpove $2,313,719,590 In sup plementary appropriations for the current fiscal year. (Continued on Pact 5, Column () Winter Again Routs Spring (Br TIM A4MCUU4 Pru) The worst storms in years brought an abrupt end to balmy weather across the nation's mid section Monday, whipping up dust and snow blizzards in the Midwest and Southwest. Sub zero temperatures were ; common in the Northern plains and upper Mississippi valley. Wfnds up to 80 miles an hour casiicd dust more than 12,000 feet into the skies above West ern Kansas. Hill city, Kan., provided a graphic example of the sharp downturn in temperatures. It's Sunday high of 66 degrees con trasted with a morning record of 17 Monday. While wind-blown dust and snow plagued Nebraska, Kansas, Colorado and Oklahoma, three inches of snow fell in Chicago and zero forecasts for Monday night. Wind and Rain In New Storm Heavy showers of rain and iirnno uinH kv . . .. inas were up 10 ao miles an hour velocity In peak gusts in Salem Monday morning. At1 noon Sunday the velocity was up to 45 miles in peak gusts. Better than three-quarters ofiCorners or sat in tea shops dis- an Inch of rain came down In the that amount being in the 24-hour! jji-nua. Forecast is for more showers tonight and Tuesday. Motorlsts are warned to carry chains on routes through the mountains, new snow falling over the week-end. Storm warnings were ordered hoisted again Monday morning all along the north Pacific coast from Tatoosh, Wash, to Cape Blanco, Ore. Senator Gore Raps Report Washington VP) Sen. Gore ness. and with this I strongly disagree." ... ,, . ....... u .... 1. jn tcnd to nor dld ,t ln fact or in ) Tne idta o( muU.biHion law create a naval petroleum re - dollar overseas air base program'serve within the meaning of the i. in . Cnui Pm,i mn in enable the U. S. to hit back with1 jj i Qcvasiaiing atomic diows u mejiuu, is ui me upn.iuu uic urui-r enemy launched an attack. jdid not create a naval oil re - i devastating atomic blows if theitoo, is of the opinion the order 1 88GU r Mf u.j. tone Planes Fire on 2 Soviet Fighters Who Flee From Japan Tokyo (U.I0 U. S. Air Force Thunderjets fired on two Russian-made fighter planes over northern Japan today, damaged one and sent both Invaders flee ing back toward Soviet-held ter ritory. Sabrejets Hit 11 Red Mig 15s Seoul VP) V. S. Sabre Jets Monday shot down three Rus-slon-built MIGs, probably des troyed another and damaged seven while screening a massive air raid on a big communist troop and supply buildup area. The U. S. Fifth Air Force re ported the communist Jet fighter losses after announcing earlier that 200 Allied fighter-bombers had turned the supply area southwest of Pyongyang into a boiling mass of smoke and flames. It was the second straight day of jet dog fights in far North west Korea. Vote 10 Percent Income Tax Cut Washington VP) The house ways and means committee ap proved a bill Monday to cut per sonal income taxes 10 per cent. cut the chairmana of the rules committee said the legislation will be pigeon - holed until at least May 1. Acting in opposition to Presi dent Eisenhower's go slow ad vice on tax cuts, the ways and means committee approved, 21 to 4 a measure by Chairman Reed (R., N.Y.) which would re duce income tax payments for SO million Americans at mid year 1953. Under present law, a 10 per cent tax cut is scheduled for Jan. 1, 1954. Chairman Allen (R 111.) of the house rules committee said shortly after the ways and means action that his group "will hold all tax reduction le gislation until at least May 1." Reed is expected to seek an order from the rules committee barring amendments to his bill from the house floor. That would give the rules committee the power to delay floor action. Financial Crisis In South Korea Seoul, Korea U.R) A financial and economic paralysis gripped South Korea today as the gov ernment prepared to issue new currency in a move to stem in-1 flation. i fcightv Dercent of Seoul's mer- ant, closed their shop, andl Prices skyrocketed 400 percent on some Items. Police began ,n.,nHl ,,n , 1 . 4 ' ,uuu ,".,,,n,o ,u Iorce "lem lo reopen. In Pusan, police patrolled the streets with rifles. Most of the residents stood around on street 'cussing the currency measure Two-thirds of Pusan's buses were idle. Work in government offices came to a standstill The panic was prompted byl a government announcement'" oy ur. w. u. nay, Astoria that it would beoin rallinir in jthe old currency, the won to- morrow. Officially worth 6,000 to one U. S. dollar, it has been selling on the black market at 20,000 to $1. Truman s Order Did Not Create Oil Reserve Washington VP) Attorney i serve to be administered by the General Brownell held Monday! that an order issued by Prcsi- dent Truman in January did not: convert offshore submerged lands into a naval reserve. Browncll's opinion, set forth tn a letter, was read by Senator Cordon, R-Ore., as the Senate Interior Committee opened hear - Inn on leinOatlnn rinnllno with ownership of the controversial " o n oil-rich area. n,...ll 4i, ,., .tntutp " The attorney general said he.:cept In the case of Texas where The Air Force presumed the planes were units of the Russian Air Force. They came from Russian territory and fled to ward it. But lacking positive proof, Far Eastern Air Forces Commander Gen. O. P. Weyland said, he could not identify them officially as Russian. Two Thunderjets on patrol were guided to the two unidenti fied planes over Japan's north ernmost Hokkaido island by ra dar. The Japanese government had warned the Russians Jan. 13 that henceforth the U. S. Air Force, in its behalf, would fire on any invading Soviet planes. The Thunderjets intercepted and closed in on the two invad ing planes, Russian-made Lav ochkin 11 siglne-engine propeller-driven fighters tn the 400 mile an hour plus class. Pursuant to standing instruc tions, our intercepter planes sig nalled the intruders to land," an Air Force communique said. "The landing sigal wnas ignored by the LA-11 fighters. "Our leader then opened fire, scoring hits on the fuselage and wings of one of the Intruders." The foreign planes turned and fled northeastward toward the Russian-held Kurile islands. The Thunderjets broke off the en gagemetn to avoid flying into Russian territory. Taylor Hopes for Chiang's Troops Seoul, Korea U-R Lt. Gen. Maxwell D. Taylor, new eighth Army commander, said he would welcome Chiang Kai Shek's Chinese Nationalist troops in Korea "with open arms in the United Nations battle against Communism. Taylor said yesterday at his first press conference since tak ing over his new command that he would welcome the help of any member of the U. N., "even on a token basis." 'I'd like to have the help of all our friends," he said. Early in the Korean war, Chiang offered up to 30,000 Chinese troops, but the offer was declined. Taylor also was as confi dent .as his predecessor, Gen. James A. Van Fleet, that the U. N. could defeat an enemy offensive. "I hope that he does attack," he said, "I'd like him to come In, any time. Any time he does come in, we are ready to take him on." He declined to comment on the U.N. potential for an of fensive. Astoria Fisherman Held Lost at Sea Astoria W An Astoria gill- net fisherman was missing and presumed drowned Monday af ter his wrecked boat was spotted on the beach at North Head Sun day. The Coast Guard said the fish erman, George Jokl, about 50, had put out to sea Friday. They speculated that the boat either had got out of control or that Joki had fallen overboard while tending his nets. The boat wreckage was spot- while he was flying a plane along the coast. Joki, a fisherman for the Col umbia River Packers Associa tion for the past 10 years, lived here with his mother. navy within the meaning of the law. Rather, he said, the general ef- feet of the order is merely to transfer to the nnw such author- lty over the area as had Prcvi" ously been conferred on the Sec- 'retary of the Interior. l In Kansas City, former Presi - rfpnl Trnmnn aiH he had no torn- ment on the attorney general's! opinion. 1 Trun: .,rH- i..j signed to give the states owner-! ship of at least a part of the sub- merged lands that part extond- Inu pau.ar,l f,,r hr mllo .v. mr uimhiiuc l0',i miles. the distance would have been ike Wants lo Creole Cabinet Security Post Leaders Also Drafting Yalta Re pudiation Resolution Washington VP) Sen. Tift rn. Ohio) said Monday President El. senhower wants to make a cab- inet-rana government depart ment out of the Federal Secur. lty Administration and has set machinery in motion tn ereita such a department Taft, the senate renubllean floor leader, gave this word to reporters after a 40-minute meeting of congressional leaders with the president. He said much of the session was spent in discussion on the question of repudiating certain "secret agreements" made by Presidents Roosevelt and Tur mart. Some progress was made to. ward drafting a repudiation res olution such as Eisenhower has called for, Taft added. Yalta Repudiation In his State of the Union ad. dress, Eisenhower said he would shortly ask congress to repudi- aie any secret agreements of the past which involved the enslave ment of free peoples anywhere. Taft said the proposed resolu tion will be introduced in con gress "within a reasonable time. "I would think lt would go through," Taft said. Taft and House Speaker Mar. tin (R., Mass.) met with news men in the office of White House Press Secretary James C. Hag. erty Immediately after they and other GOP leaders had held their regular Monday morning strategy conference with the president Shyness Dlseappeara This was a departure from past sessions, when the eonerea. slonal leaders have been reluc tant to talk. (ConUnned en Page t. Cetoaa f) Adlai and Ike Lunch Together Washington, (U.B Adlai t Stevenson today accepted Pres ident Eisenhower's invitation to join him tomorrow at a lunch for a group of Republican and Democratic House members. White House Press Secretary Jjunes C. Hagerty said that Stevenson, defeated by Mr. Ei senhower for the presidency, will confer with the President in his office tomorrow. Then Stevenson will loin the Chief Executive at another in a aeries of congressional lnnch es which Mr. Elsenhower has been holding for two weeks. This morninl. Sherman Ad- a ma, assistant to the President, renewed the "tentative" invita tion extended Stevenson before his New York speech Saturday night, and the former governor of Illinois accepted. Editor Planner For Cold War Washington VPh-President El senhower named C. D. Jackson, 50-year-old New York publish er Monday, as his special assist ant in charge of cold war plan ning. The appointment was announ ced by Sherman Adams, chief assistant to the President He said Jackson would serve as a liaison official between the various government depart ments and agencies active in psychological warfare strategy. Jackson has been given leave from his position as publisher of Fortune Magazine. Ralph Dela haye Paine Jr., managing editor of the publication since 1941, was named Sunday night to sue ceed him in that post. Jackson was deputy chief of psychological warfare under Ei. senhower when the president was commander in charge of the North African campaign in World War II. Kinn XplarfOfl AC iVilly JCICllvU UJ i HAWAII UflVPmflr "M " M" W1WHIUI Washington 0J.B Samuel W. King of Hawaii will be nominat- ed by President Elsenhower to be the new governor of Hawaii, the White House announced to day. King, former territorial dele. gate to the Congress, had the backing of Sen. Robert A. Taft, senate Republican leader. King will succeed the present Democratic governor, Warren D. Long. I I