(., THE WEATHER MOSTLY CLOtJDT wit scat tered showers -lata tonight, Thursday. Little change la tem perature Law tonight 34; aire. Thursday, It. PD MAIL' EDITION ! f. t ' ? 65th Year No. 54 Salem, Oregon, Wednesday, March 4, 1953 (24 Pages) Price 5c a! taunt m Mai steal mutm at Onm Balancing of Stale Budget Eludes Group Only $11.6 Millions To Finance $26 ' Million Bills By JAMES D. OLSON . Tha waya and means commu te Wednesday found that It haa but $11,614,296 to finance ad ditional requests of a boat !, 09 tOO, Including appropria tion bills In the committee and the building programs of the state board of control of blither education. This condition was revealed in the first financial report pre pared for the committee, with the explanation by Carl Cover, chief clerk of the committee, that future developments may alter the present financial pic ture. Increases Approved The statement shows that the committee and subcommit tees have approved $311,619 in budget increases, including sal aries of appointed officials, six elective state officials, supreme court justices and circuit judges, and state police plus an appropriation to check seepage In the capltol basement Decreases in bill signed by subcommittees total $1,444,491, but this includes $1,000,000 by elimination of one merit raise In the biennium for state em ployes. Some members of the committee questioned this item f on the grounds that only one ,i such raise was granted during the present biennium. - Income Tax Revenues ; Estimated revenues from per sonal ' and corporate Income taxes are listed as $116,000,000, (Concluded an Pace (, Catunui ) : Bill Calls for Motor Pool Introduction of two bills pro viding for establishment of a motor pool and construction of a building just east of the state's heating plant on Bou.th . 12th street was authorized by the joint ways and means commit tee Wednesday. The establishment for the motor pool for all state cars op erated out of Salem waa recom mended by Governor Paul Pat terson in his message to the legis lature. Harry Dorman, director of the department of finance and ad ministration told the committee that there was great need for the pool as well as for the pro posed building wrucn is plan ned as a three-story structure, The building he said, would be used for storage on the first floor, the second floor would be occupied by the purchasing division of his department and the third floor by one of the dm- aions of the secretary of state, Cost of the building was given as $337,000. , The bill setting up .the auto pool would permit a revolving fund with which to purchase automobiles operated by state departments and operating funds would be obtained through charges made to departments drawing motor vehicles from the pool. Truckers Gel Hike in Rates Oregon motor truckers won permission Wednesday to in crease their freight rates 5.66 per cent on shipments within the state. ' Public Utilities Commissioner Charles H. Heltzel authorized the increase, but refused to give the truckers the 9 per cent In crease they asked. A year ago, the truckers were allowed to boost their rates 6 tier cent. Th s.68 uer cent increase is an average for all commodities. Heltzel said that rates on thna shipments couldn't be In creased: Livestock shipments of more than 5,000 pounds, fresh fruits and vegetables in trncx load lots, petroleum products carried in tank trucks, drayage service inside cities, household goods, and on shipments between Portland and Wheeler, Grant, Harney and Malheur counties. Th increase in rates on trans portation of cement and similar nroducti was limited to 8 per cent. ' Weather Details lar BMlki .tit wnut J MUM. S1.S7I ""' " "J" Civil Rights Endorsed by Senate Group Criminal Penalty For Violation Removed by Group By PAUL W. HARVEY, JR. The Oregon legislature's civil right bill was endorsed Wednes day by the senate judiciary com mittee, with two of Its members making strong protests. The bill, which prohibits ho tels, restaurants, motor courts, taverns and amusement places from discriminating against any body because of his race or re ligion, was introduced by 19 of the 30 senators, and 7 of the 60 representatives. The committee removed the criminal penalty from the bill. under which, violation would bring a mlximum penalty of a year in jail and $500 fine. Fines Only Penalty Aa the bill. now stands, any body discriminated against could sue for up to $500 damages. Sens. Warren Gill, Lebanon, and Gene L. Brown, Grants Pass, were the two committee members who want the bill de feated. Brown also was a co sponsor of the bill, but now he's changed his mind about it Brown and Gill said th ey would like the measure referred to the people, and both said any body has a constitutional right to discriminate. , . (Continued an Pass t. Caiman 7) Oppose Hike in Jobless Pay Employer representatives at the legislature Wednesday chal lenged a statement attributed in the newspapers to Rep. Gust An derson, chairman of the house labor and industries committee, to the effect that certain propos ed increases in workmens' com pensation benefits could be en. acted without an increase in employer contributions. "We and our principals are absolutely opposed to the idea that it is right to deplete the re serve" In this fund just because the money is there," Robert Mc Kean, who heads the employers' group, said. "It is our opinion present ben. efits under the act are adequate to the purposes of the law," Mc Kean said. Oregon benefits rank approximately third highest in the nation according to figures supplied by the state industrial accident commission. These ben efits have been Increased each session of the legislature for the last 12 years. There is nothing In the economic situation In this area today that calls for an in crease over the levels established in 1951." Sunshine and Blue Skies Follow Frost Keeping true to March's freaky conditions, the weather brought considerable sunshine and blue skies for Salem and area Wednesday morning, des- pite forecasts. Changes come rapidly this time of year, how. ever: anyway, no one was dls nleaed to see sunshine instead of cloudiness and rain. Forecast for tonight and Thursday calls for mostly cloudiness and some scattered showers. Court Rules Spraying Lav; Invalid The 1951 state law regulating aerial spraying of farm crops and forest lands was ruled un constitutional Wednesday by the Oregon Supreme Court. The high court, with Chief Justice Earl C. Latourette writ ing the opinion, said the law gives too much power to the De partment of Agriculture and State Board of Aeronautics. These departments license the aerial sprayers. The suit was brought by Leo J. Doners, Salem, who operates 50 airplanes In the spraying bus iness. "Under a blanket authority the rule-making bodies of their directors could conjure up from their fancies or Imagination any regulation which -night come to mind. For a violation tnereot, the licensee could be fined, im prisoned and have his license revoked," Chief Justice Latour ette wrote. He added that the 1951 law elves the Department of Agri culture and Board of Aeronau tics "uncontrolled and unlet- r v , V I . , r - -- p h:i&i viiTm Rap of Russia Unacceptable Washington ( The Senate Democratic Policy Committee tabbed "unacceptable" Wednes day the Republican-revised res olution condemning Russia for 'enslaving ' other peoples. The Democratic group ex pressed belief that it is also "un acceptable to the State Depart ment, i The policy committee's action foreshadowed a bitter t debate when the resolution comes up for Senate consideration. The Republican Policy com mittee already has given for mal endorsement to the amend ment the Senate Foreign Rels tlona Committee made to the Eisenhower administration's res olution, t By a vote of S to 6, the for eign Relations Committee Tues day " wrote" into the resolution a declaration that its adoption would "not constitute any de termination by the Congress as to the validity or invalidity" of any war-time agreements made at Yalta, Potsdam or other Big Three meetings. Contracts for Highways Let The following contracts were awarded Tuesday by the State Highway Commission: - Douglas County Grading 6.86 ftiles of the Divide-Rice Hill section of the Pacific High way east of Yoncalla. Awarded to R. A. Hentiz Construction Co., Portland, for $497,028. Curry County Grading 2.91 miles of the Rocky Point-Gold Beach section of the Coast High way 10 miles south of Port Or ford. Awarded to Fred H. Slate Co. and E. C. Hall Co., Portland, for $648,682. Douglas County Construct two concrete viaducts on Elk head Road-Hill unit of Pacific Highway east of Yoncalla. Awarded to Hannan Bros., Port- Hand, for $71,910. Aerial tered power to make rules and regulations governing airplane operators In the application of chemicals, which is a perfect exemplification of bureaucracy in full bloom with attending con fusion worse confounded." In the Marlon County Cir cuit Court, Judge Rex Kimmell ruled part of the law unconstitu tional. The Supreme Court modified Judge Kimmell's finding by toss ing the whole law out. Other opinions Wednesday in cluded: W. O. Blaylock, appelant vs. Gust A. Westlund. Appeal from Douglas County. Suit for dam ages for personal injuries. Opin ion by Justice George Rossman. Judge Carl E. Wlmberly's order granting new trial is affirmed. Walter H. Sweet and others, appellants vs. Irrigation Canal Co. Appeal from Union County. Suit to stop maintenance of an Irrigation ditch. Opinion by Jus tice Hall S. Lusk. Judge Forrest L. Hubbard, reversed and new trial ordered. A Million and a Half Dollars worth of Salem school bonds being readied by County Treasurer S. J, Butler prior to their being turned over to the purchaser. The money, plus a couple million more, will be used in the construction of the new South Salem' high school. Sam Butler Processing Bonds Job , By FRED ZIMMERMAN When a school district or any, other political sub-division de cides to borrow a million ana a half dollars, there is a lot more involved than merely calling for bids and then having the bonds and coupons printed. This was revealed during a conversation with S. J. Butler, county treasurer, who was found in his office Wednesday morning placing 1500 bonds, each with a face value ox iiuuu, ana nearing the necessary coupons into a cardboard carton which had first been used for the packing of eans'Of pineapple.- Trailer Blast biiures Women Eugene, WV-A gas explosion knocked out the sides of a new trailer house and put two Clark ston. Wash., women evangelists in a hospital here Tuesday night with severe burns. ' The women, Phyllis Elvey, 35, and Elvlna Sawley, 29, had bought the trailer house earlier in the day. Returning from a church meeting at Springfield, one of them struck a match to light a bottled-gas lamp and there was an immediate blast The sides of the trailer were blown out and the roof was bulged. Fire followed. The Rev. Edward R. Benedic of Eugene, pastor of the United Pentecostal Church at Spring field, tried to put out the fire and suffered hand burns. The two women were burned on face and arms. Miss Sawley's condition Wednesday morning was reported to be fair and that of Miss Elvey good. Liner Lurline to Sail to Hawaii San Francisco W The luxury liner Lurline was scheduled to sail for Hawaii at 4 p.m., Wed nesday, despite demands by AFL deck officers and CIO radiomen for a 9.5 percent wage Increase, A no-slgn-on walkout by the AFL Masters, Mates and PiloU union had idled seven ships. The CIO American Radio association threatens similar action. Both unions seek wages equal to East and Gulf Coast standards, Tuesday night, however, Su perior Judge Preston Devlne de clined to issue a temporary re straining order, requested by the Pacific Maritime Association, to prevent the radiomen from tle- ing up the Matson liner. Davine said Daniel Focel. un ion attorney, had called W. R. Steinberg, radio union presi dent, and that Steinberg had pro mised to urge operators to report aboard the Lurline. WEINBERG CASE WITH JURY Washington T) The Joseph W. Weinberg perjury case went to a U.S. District Court jury at 2:32 p.m., (EST) Wednesday. Describes "I'll need another box before I get through with the job," re marked Sam aa he busied him self with the task at hand. Then,. the accommodating man that he Is, he went into detail as to what happens to a bond pf this issue. Naturally the prop erty owner loots the bill. But be yond that there are many and various processes involved, In this case the bonds are the obligation of the Salem school district, authorized by the voters for the purpose of building new. high school. .,. " They were printed by a Port land concern and turned over to the school authorities for the signatures of Gardner Knapp, chairman of the board, and C, C. Ward, clerk. These officials had signed the bonds personally before they were turned over to Butler. Ward estimates he spent four hours in signing the docu ments. Knapp. with' a name a trifle longer, spent more time at the task. (Concluded n fr i. Calamn $) Japan Hopes tor Alaska Lumber Tokyo JPi Japan hopes to fi nance and operate a lumber mill in Alaska's vast forests within a year, says the head of a seven man technical delegation which reoently returned from Alaska. Takujo Oshima said the Japa nese government has been nego tiating with the U. S. State De partment since early last year for rights to cut timber in Alas ka and a general agreement was reached. Oshima, director of Japan's Forest Resources Council, said in an interview his mission found wonderful possibilities.' He said If the program was put through, it would fit fn with the U. S. development program in Alaska under which pulp mills would help supply the world with much-needed newsprint and paper. The U. S. government realizes this and agrees In principle, Oshima said Seek to Outlaw National Strikes Washington (AV-The Nation- al Association of Manufacturers today arked congress to outlaw Industry-wide strikes and out law all forma of "compulsory unionism" such as the union shop. The NAM claims to represent 85 per cent of the nation's man ufacturing capacity and to have more than 9,000 members. In a statement prepared for the house labor committee, George W. Armstrong, Jr., chairman of the association's industrial relations committee, said: "Aside from compulsory un ionism, the greatest source of monopoly powers Ilea in Indus trywide bargaining." : Van Fleet Says Victory Only Out in Korea Allies Can. Win With out Enlarging War Into Greater Conflict Wuhlnrton, JP Gen. James A. Van Fleet declared Wednes day the United Nations forces can win a military victory In Korea without enlarging that war Into greater conflict. And, he said, he knows of no other way to break the deadlock over the prlscfieA-of-war issue the great anag of armistice talks. With the four-star general In the witness chair of the House Armed Services Committee, Rep. Patterson (R, Conn.) asked: "Is there any solution to the prob lem of Interchange of prison ers?" Victory the Answer Van Fleet replied in one word: "Victory." Patterson: "Other than that, there s nothing else?" Van Fleet: "That's alL" (Oeacladed Pace I, eafauna I) Ike Expresses His Sympathy Washington () President Eisenhower expressed his sym pathy to the Russian people Wednesday in commenting on the serious illness of Premier Stalin. The president voiced hope In a statement that God will watch over the Soviet peoples "re gardless of the Identity of gov rnment personalities." The text of the statement: VAt this moment in history when multitudes of Russians are anxiously concerned because of the illness of the Soviet ruler the thoughts of America go out to all the people of the USSR the men and women, tha boys ana girls In the villages, cities, larma ana rectories. of their homeland. "They are the children of the same God who is the Father of ail people everywhere. And like all peoples, Russia s millions share our longing for a friendly and peaceful world." ' McCarthy Not to Subpoena Files Washington W) Sen. McCar thy (R., Wis.) said Wednesday he has a pledge of cooperation from the State Department which may make it unnecessary to subpoena loyalty files of two department employes. Earlier, McCarthy had de manded the official reports, plus "the supporting documents" In the cases of Theodore Kaghan and Edmund Schechter, who' worked for the department's Voice of America propaganda broadcasts. McCarthy told his senate in vestigations subcommittee the word on cooperation came from R. W. Scott McLeod. the State Department's new security chief "In whom I have the utmost con fidence." He announced the subcommit tee win await McLeod's prom ised study of files not immediate ly available to him before de ciding on any next step in the move, which developed from his investigation of the Voice activities. World Reaction to Stalin's Serious Illness Reaction around the world to the announcement of Joseph Stalin's serious illness: Washington Specialise in Russian affairs say anything can happen when Stalin dlea, but Georgi M. Malenkov is consider ed to have inside track? for his job. Officials not optimistic that Stalin's death would bring any great change in Russian policy. London Prime Minister Churchill, who may survive as last of the wartime "big three,' offers sympathy to Russians. British recall past fears of rash action, in the event of a struggle over Stalin a job, Bonn, Germany Chancellor Adenauer says Stalin's death would not let the world relax. and "should only strengthen us to pursue the course of which we have embarked." Belgrade semi-official press agency sees Implication In Mos cow announcement that Stalin ROK Regains Top of Hill in Bloody Battle Seoul V-Valiant South Ko rean Infantrymen regained the top of a bloody outpost bill po sition on the Central Korean front Wednesday in a thunder ous climax to 23 hours of sav age close-quarter fighting with an estimated 500 Chinese Reds. The Republic of Korean troopt bad pulled back from the out post at midday and let Allied warplanes turn the hill into a smoking mass of bomb craters and debris. In late afternoon tha ROKs counterattacked and forced their way back to the top of the un named bill southeast of Kum- song. The Eighth Army briefing of ficer said the South Koreans counted 30 Chinese dead on the battlefield when the fighting ended just before dark. Another 90 Reds were estimat ed killed and 60 wounded. That would be a casualty toll of 180 more than one-third of the at tack force. - Clark on Tour Of Battle Front Seoul, Korea WJB Gen. Mark Clark, UN Far East commander, flew to Korea today to make a four-day "routine" inspection of United Nations installation. Gen. Maxwell - D. Taylor, Eighth army commander, and Lt Gen. Glenn O. Barcus, Fifth Air Force commander, were on hand to greet Clark when his piano arrived from Tokyo. Clark said he planned to con fer today with South Korean President Syngman Rhea on "many subjects." . During his tour, which ends Saturday, Clark will visit all UN unlta at the front and tour rear areas. Subjects on which Clark will confer with Rhea include the dispute between Japan and Ko rea on fishing rights of Japa nese fishermen. Trunan Sorry For Joe Stalin Kansas City UJS Former President Harry S. Truman said today he was "In no position' to comment or the effect of the illness of Russian Premier Josef Stalin. Mr. Truman In his office in the Federal Reserve Bank building, told a newsman: "Of course I'm sorry to hear of his trouble. I'm never happy over anybody's physical break down. The reporter asked Mr. Tru man If he would assess the ef fect oi Stalin's decline from power. - "I'm in no position to assess the effect because I have not been In touch with the foreign situation since January 20," Mr. Truman said. v France to Let U. S. Lay Jet Fuel Pipe Paris 11 After 18 months of squabbling, the French are about ready to let the United States lay a jet fuel pipeline across France. High ranking French officials said the pact would be sealed within two or three weeks. The pipeline would carry fuel for the jet fighters and bombers of the U. S. Air Force stationed In France and West Germany. already Is dead. Yugoslavs won der how change in power would affect Moscow's fight with Tito, Vienna Western diplomats believe no changes are likely in control of satellite countries in view of recent purges by men in power "The purges are likely to con tinue," says one official. "The Communist system needs a con stant bogey man to keep In New Delhi Prime Minister Nehru learns news as he arrives for parliamentary session. There is widespread speculation that Stalin already was dead when the announcement of his illness was made. Tokyo Foreign Office sources see no change in Russian policy. Believe Malenkov if named would continue efforts to woo Japan away from the West. I!o .':; Rcpcii On Ccnaiiion Of ioa Sfnlln Russian Premier Suf fered Paralizing Brain Stroke Sunday Night Moscow () The diselaaara of Prime Minister Stalin's grave Illness kept thousands f Bos alans near their radios Wednes day night, waiting fat- further medical bulletins. The original bulletin, covering the situation up to 2 a.m.. Wed nesday, is 17 hours old aa this dispatch is written. Further bul. letins have been promised, but there la no indication when they will come. Radip stations are continulns to repeat the original communi que. This said Stalin was strick. n Sunday night with brain stroke and that his brain condi tion later grew worse, Council Goveralnf Rcasia Between readings of Ola com munique, the stations are broad casting slow and somber instru mental and choral music The council of ministers and the Central Committee of the Communist party announced themselves as guiding the gov ernment and party, respectively. However, there la as yet no in dication how leadership of tha government will be affected. (Concluded on Page S, Column 4 in Lead for Power Washington Vn The name of Georgt M. Malenkov led all the rest in Washington specula-' tlon on a possible successor to the gravely ill Joseph Stalin, but Russian specialists said any thing could happen In the event ct the Premier's early death. So much secrecy shrouda events In Moscow and obscures the small (roup of Kranlin .per sonalities which directs them that persons outaide harvi rt very adequate means for pre dicting what may happen, Malenkov. Ilka V. M. Main. I to v a denutv nremier. aeems to I outside observers to have strengthened his position as chief claimant to Stalin's mantle greatly in recent years. He took a particularly prominent role in last fall's Russian Communist Party Congress. He is close associate of Stalin. Informed persons hers do not rule out, by any means, the pros pect that there may be a bitter struggle for leadership among the men in the Kremlin, Stalin Likely to Die Any Minute New York CffV Dr. Arthur Z, Snyder. ranking medical man on duty at Columbia-Presbyterian Medical Center early to day, said Premier Stalin "could die any minute," on the basis of Moscow's report of his condi tion. After a newsman read Sny der a Moscow bulletin on Stal in's condition, Snyder said the Russian leader apparently is critically ill" and in "extreme ly serious condition." Snyder added: "The ultimate prognosis fore- - cast or prediction depends on the progress that he makes In the first few days, possibly the first week." The doctor said Stalin ap peared to have suffered a "fair ly large cerebral vascular acci dent due to hemorrhage," The reference was to blood vessels In the head. War Casualties Total 130,732 Washington. () Announced U. S.-battle casualties In Korea reached 130,732 Wednesday, an Increase of 411 since last week. This is the largest weekly in crease since Nov. 19, 1952, when the toll was listed as 839. The Defense Department's weekly summary based on noti fications to families through last Friday reported: , ' Killed in action, 20,653) wounded, 97,057; missing, 13,- -022; Total, 130,732. Breakdown of tha casualties by services: Army 102,007; Navy,' 1,844; Air Force, 1,424; Marina Corps, 25,457. .!), -4;!!;:i! Ml t 1 1 ' -i '; I 1; . i. ! . A. ' .tat i :.-:'t i 11 1 ' ' 1 ' ' ! i