i t
i
I '5
THE WEATHER.
PARTLY CLOUDY tonight, In.
ereulof cloudiness Sunday,
Slightly warmer. Low tonight.
40; high Sunday, 68. ' H
Interest Rales
Hiked Private
Home Loans
FHA and VA Boost
To AVi Percent
On Insured Loans
Washington The govern
ment Saturday boosted to 4V4
per cent the interest rates that
may be charged on private
home loans Insured by the Fed
eral .Housing .Administration
and guaranteed by the Veter
ans Administration.
For the VA, that was a raise
of per cent; for FHA, V per
cent.
FHA also boosted by per
cent to y per cent the max!
mum rate on loans it guaraiv
tees for large rental housing
projects.
The FHA rates in each in
stance are in addition to a
per cent charge which goes into
tne agency s insurance fund.
VA makes no corresponding
charge.
Other Bousing Unchanged
Left unchanged at 4 per cent
are the maximum rates on mili
tary, defense, and cooperative
housing projects, on which the
rates are fixed by law.
The military housing projects
are those erected by private
Guilders under authority of the
Wherry Act.
The new rates will have no
effect on mortgages already in
effect, but may be applied to
loan applications now in pro
cess wnere tne loan Has not ac
tually been made.
(Continued on Page 5, Column 6)
Send Diplomats
To Middle East
Washington VP) A shift of
diplomats and plans for a high
level tour emphasized today
the Eisenhower administra
tion's declared interest in the
Middle East.
Two countries from that
area India and Pakistan'
were receiving special atten
tion as possible nominees for
the task of supervising prison
ers of the Korean War who. re
fuse to go home. Informed U. S.
authorities said that, while no
firm policy decision had been
made, the U. S. might agree if
the Communist truce negotia
tors nominated either Pakistan
or India.
President Eisenhower ac
cepted yesterday the resigna
tion of George C. McGhee as
ambassador and chief of the
U. S. aid mission to Turkey,
effective June 20. There were
reports Avra M. Warren, ca
reer diplomat who is being re
placed as ambassador to Paki
stan, might succed him.
Settlement of
Metal Strike
Seattle VP) An agreement
which promises to end the
month lone strike of AFL
unions against metal fabricat-
ine plants and foundries was
reached by negotiators Friday
night and union members
were voting Saturday on rati
fication. '
A back-to-work movement
was expected Monday or
Tuesday for the 10,000 persons
tdled by the strike.
' A few unions reported they
had not yet received copies of
tEe agreement with Washing
ton Metals Trades, Inc., but
some had ratified before noon
Saturday.
Boilermakers reported their
wages would go up 12 cents
an hour "across the board"
and Molders reported a H
cents boost for most classifi
cations. Journeymen in both
cases would receive $2.15 per
hour under the agreement,
55,000 Licenses
Smelt Dipping Issued
Portland VP) The State
Game Commission said Satur
day a record high total of more
than 55,000 smelt dipping per
mits were Issued for the late
Anril run of the fish in the
Randv River.
The run, one of the latest,
was the largest on record, and
nearly everyone who tried, got
the 25 pound limit, the com
mission said.
The previous license record
was 32,000 In 1948.
Weather Details
i.rdmT. Mi minimal!!
.11. T.I.I -hnr pmlsiutmi:
f.t nanlh: .Mi norra.l. .It. ""?""
.I.lullon. .l n.niiH.
hHlhl. t. fwt. (mrt r O. WMt
tr Aire.) ,
65th
Raver Pleads
Restoration of
Budget Cuts
Bonneville Program
Declared Crippled
By $11 Million Slash
Washington VP) The head of
the Bonneville Power Admin
istration has told a Senate ap
propriations subcommittee why
he feels it should recommend
restoration of 11 million dollars
to Bonneville's budget for the
year beginning July 1.
Dr. Paul J. Raver, who urged
Wednesday that the Senate in
crease the amount in the House
approved bill to the total rec
ommended by the Eisenhower
administration, completed his
description Friday of effects he
said the cut would have on Bon
neville's Pacific Northwest
power distribution program.
The House has approved ap
propriation of $38,300,000 for
Bonneville construction and
five million for operation.
(Continued n Pate I, Column )
Asks Halt in v
Ban on Imports
Washington VP) The State
Department Saturday asked
Congress to halt action on a
bill by 14 western senators in
tended to curb the increasing
I flow or foreign agricultural im
ports, particularly wool.
Speaking for the State De
partment, assistant secretary
Thurston B. Morton said in a
letter read at a Senate Agri
culture Committee hearing that
a "parity protection" bill would
have a "most unfortunate effect
on our international relations."
Foreign nations, he said,
would reeard the move to in
crease Import duties "as evi
dence that the United States
was adopting a policy of non-
cooperation in working out our
national well-being ana our ;
ourltv."
The bill by Sen. Mundt and
13 other senattora would pro
vide that whenever a domestic
farm product is under govern,
ment price-supports, the treat'
nrv would be reauired to col
lect a duty on imports of that
product "so that the duty paid
price In United States dollars
is not less than the parity
price."
Senators Balk
On Ike's Plan
Washington W) Two south
ern democratic senators sat
,,roV nrfforl President Eisen
hower to change his mind
hont wlDine out a defense
agency they said saves the tax
of dollars.
Sens., Long of Louisiana and
ctonni nt MIssissiDDl protest
or! thn nrnnosed abolition of
ho nfflre of director of instal-
lations, set up by congress Just
eight months ago.
Roth lawmakers had refer
in the nresident's plan to
reorganize the department of
defense. The plan was sent to
congress Thursday ana, oy
law, goes into effect eu nays
from then unless either the
senate or house rejects it by a
clear majority.
Congress must accept or re
ject such plans as a whole, al
though amendments may
made in separate legislation
later with senate and house
approval and the president's
signature.
Dark Star,
Wins Kentucky Derby
rr iywv-"
I ffiSteY
f.-.-:t.fe :
Dark Star
Capita
Yor, No. 105 Srff.asrS.S: Salem, Oragon, Saturday, May 2, 1953
WILLAMETTE'S
3 . lih i
immm
Pretty Dona Mears, senior from Roseburg, who was
crowned Queen of Willamette University's May Week-end
at ceremonies this afternoon on campus. Queen Dona I,
who began her reign Friday afternoon, will also rule over
tonight's Coronation Ball and the annual Queen's Break
fast Sunday morning at Lausanne Hall.
U.S. to Speed
Up Delivery of
Arms to Laos
Washington VP) Secretary
of State Dulles announced Sat
urday that the United States
has "taken steps" to speed de
livery of military supplies cri
tically needed by the defenders
of Laos in Indochina..
Dulles said in a statement
that this government considers
the communist attack on the
state of Laos "ruthless and un
provoked." Red talk of a Lao
tian "Liberation Army" and of
"Vietnamese Volunteers' are
classic commuinst phrases,
Dulles said, which help identi
fy Red aggession.
Reports have been received,
he went on, that the people of
Laos are rallying around their
kins and are cooperating with
French-led forces in defense of
their capital, Laung Prabnag.
The United States is in "close
contact" with the Laotian and
French governments, Dulles
said, and in addition to speed
ing delivery of military sup
plies has directed the foreign
aid mission in Laows to Laos
to help with funds and relief
supplies to take care of "Vic
tims of Vietminh" communist
aggression.
Payroll Cut
For Treasury
Washington, VP) Secretary
of the Treasury Humphrey has
started economy at home in
the secretary's office.
Treasury personnel officials
said reorganization of the sec
retary's office ordered by
Humphrey took 30 people off
the treasury's payroll for a
saving of $147,000 a year. The
secretary's office last year em
ployed an average of 467 per
sons, with salaries of $2,585,
000. At the same time, however,
Humphrey has addad a deputy
secretary and three assistants
to the secretary. Those salaries
no uo to $48,400.
So the net saving in the sec-
retary's office is $98,600 a
year.
24 - 1 Shot,
Louisville VP) Dark Star
won the 79th Kentucky Derby
defeating previously unbeaten
Native Dancer by a nan
length.
Dark Star, owned by Harry
F. Guggenheim's Cain Hoy
Stable, set all the pace ana
beat off the challenge of the
fast closing Native Dancer,
winner of 11 straight races be
fore Saturday's mile and one-
quarter classic. The time was
two minutes and two seconds.
Invigorator, owned by the
Saxon Stable, was third and
the fast closing Royal Bay
Gem fourth in the field of 11
three-year-olds.
Dark Star, winner of Tues
day's Derby Trial and ridden
by Henry Moreno, broke on
top and never relinquished the
lead. He held a two length
'dvantage over Correspondent
1 (UaaUtuMd an Pifo I, Colamn 7)
MAY QUEEN
Dona Mears
Crowned Queen
Festivities incident to the
May Week-end program at
Willamette university reached
a climax Saturday afternoon
when Queen Dona Mears was
crowned at colorful cere
monies. The two-day program was
scheduled to be concluded
through the medium of a
queen's breakfast from 9 to
10:30 a.m. Sunday and church
services at the First Presby
terian church.
Saturday night in the uni
versity gymnasium the queen's
ball was to be held.
While cool, showery weath
er conditions prevailed Friday,
atmospheric conditions did not
curtail the scheduled activities.
These include a street parade
and it barbecue, tug o' war and
a greased pole climbing con
test. This latter event was won
by the sophomores while the
freshmen proved to be , the
stronger on the rope.
Featuring Saturday after
noon's schedule was the base
ball game between the Bear
cats and the Lewis and Clark
Pioneers on McCulloch field at
2:30.
Ike to Radio
Polish Message
New York VP) A special
message by President Eisen
hower to the people of Soviet
dominated Poland, commemor
ating the establishment of the
May 3, 1791, will be broadcast
Sunday by Radio Free Europe.
The President s message saia
that the anniversary "merits
world-wide recognition," but
added:
Quite obviously it will not
be honored by enemies of Po
lish freedom. The celebration
of Constitution Day has been
cancelled in Poland itself
by men who do not under
stand that love of freedom
cannot be killed by fiat or
force."
I
Pea Sale Loss
Over $6 Million
Washington WV-The U.S.
department o f agriculture
took a $6,400,000 loss when
three Pacific northwest firms
purchased 80,000 tons of Aus
trian winter peas for $30 a
ton.
The peas, acquired by the
department under its seed
nrice suDDort program, cost
the government $110 a ton.
The three firms which
bouffht the seeds as cattle feed
are Archer - Daniels - Miaiana
company of Portland, Ore., E.
F. Burlingham and Sons ot
Forest Grove. Ore., and Henry
D. Gee company of Seattle.
The commodity credit cor
poration, which negotiated the
sale, said Friday the peas had
been offered for sale at sou
a ton as seed. Then when
germination no longer could
be guaranteed, the peas were
offered at $50 a ton as feed.
There were no buyers though,
because ether feed could be
obtained at lower prices.
If
Tornadoes Kill
27, Injure Many
In Southeast
(Br Tht uoolitt Prua)
A tornado dipped into east'
ern Tennessee Saturday, kill
ing at least three persons,
This brought to 27 the three-
day death toll from twisters In
a three-sttae area.
Just before dawn, a torna
do struck near Decatur, Tenn.,
some 45 miles northeast of
Chattanooga. Killed when
their home was demolished
were Mr. and Mrs. Carl Har
mon, both about 40, and their
14-year-old daughter, Doris.
Saturday's storm struck in
the wake of tornadoes which
earlier killed 25 persons and
injured hundreds in Alabama
and Georgia.
Twisters struck along a 60
mlle path in North Central
Alabama Friday, hitting hard
est at Ashland. Seven were
killed and 12 injured. A tor
nado which ripped the area of
Warner Robins, Ga., on Thurs
day, killed 18 and injured be
tween 250 and 300. The twist
ers caused millions of dollars
damages to property.
Showers In Propsect
bhowers were in prospect
for much of the southeastern
section of the country. The
weather bureau, however, had
not issued any tornado warn
ings early today. A cool front
had moved into eastern Ken
tucky this morning.
(Continued on Pace t, Colamn 1)
Canada OK's
Ottawa, VP) -The second
phase of Westcoast Transmis
sion Company's $113,000,000
project to pipe natural gas
from Peace River area to
Southern British Columbia and
Pacific Northwest states Sat
urday was approved by Cana
da's Board of Transport Com
missioners. This second phase is for con
struction of a spur line off the
main Peace-Vancouver arm to
feed natural gas to Eastern
Washington state and the in
dustrial center of Trail, B.C.,
and nearby points. This spin-
would start near Brookmere,
B.C., and pass thrugh Prince-
ton to hit the U. S. border at
Osoyoos.
The transport commissioners
last year granted Westcoast's
application for the main line
from the Peace to Vancouver
and points as far south as Port
land, Ore.
Hearings are still going on
before the U. S. Federal
Power Commission in Wash
ington on Westcoast's applica
tion to pipe gas into the Pa
cific Northwest states. This
hearing is the crux of the proj
ect because such a pipe line
would be uneconomical with
out the U. S. market.
Latfimore Trial
Set in October.
Washington VP) A federal
Judge Saturday threw out
charEes that uwen ivauimore
lied about alleged Communist
sympathies but ordered him to
trial here Oct. 6 on three lesser
counts of perjury.
District Judge Luther W.
Youngdahl struck out four of
seven counts on which Latti
more, far eastern specialist, had
been indicted last Dec. 16.
The judge denied defense ap
neals for killing the entire in
dictment, for moving the trial
site from Washington and for
postponing the trial until next
year.
He was indicted on charges
of lying to the Senate Internal
Security subcommittee.
Lattlmore has denied all the
charges brought against him,
including what he called the
"pure moonshine" statement by
Sen. McCarthy (R-Wis.) that he
was the top Soviet espionage
agent in this country.
Lattlmore, a Johns Hopkins
University lecturer, served on
occasion as a State Department
consultant on far eastern affairs.
48 Hour Recess Galled
By Reds in Time Table
To Plan Major Move
Panmunjom (U.R) The Com
munists called a 48-hour recess
in truce talks today and it was
believed they might be seeking
high-level instructions in pre
paration for a major move.
North Korean Gen. Nam n
asked the recess after Lt. Gen.
William K. Harrison, United
Nations truce chief, accused
him of making a "deliberately
untrue statement" about the
choice of a country to take
charge of Communist prisoners
who refuse to go home.
The U. N. and Communist
teams bickered throughout to
day's 64-minute session over
the disposition of the 48,500
anti-Red prisoners.
Name Four Nations
There was only one develop-
40MorePOW
Reach Travis
From Korea
Travis Air Force Base, Calif.
Another planeload of re
leased U.S. prisoners of
arrived from Korea.
There were 40 men on the
big ship which landed after an
overnight flight from Hono
lulu. The repatriated men from
communist prisoner ot war
camps were greeted by
bright, warm spring day.'
There were fewer than 100
persona at the air field, in
contrast with the crowd of
several thousand when then
first plane load of repatriates
arrived on Wednesday.
This was the third plane to
bring the freed prisoners to
their homeland. The first ar
rived on Wednesday with 35
men. Another flew in Friday,
under a mantle of secrecy,
bearing 21 others.
Freed Gl Sent
To Valley Forpe
Phoenlxville, Pa. The
array began treatment toaay
at its Valley Forge hospital of
a number of freed American
soldiers who "may have been
victims of communist propa
ganda" during their imprison
ment in North Korea.
The men were among a
group of 20 ailing former cap
tives who arrived by plane
from the Willow Grove air
field to the hospital by bus
and ambulance, some 30 miles.
They were Immediately as
signed rooms and provided fa
cilities to make telephone calls
to relatives.
Army authorities were
quick to point out that "only
a few" of the 20 men were
suspected of having fallen vic
tim to communist "brain
washing" during their confine
ment. They were not identified.
Percy Blundell, Calpak
Superintendent, Dies
Percy Blundell. superintend-.
ent of the Salem plant of the
California Packing Corpora
tion since 1930, died early Sat
urday morning at Emanuel
hospital in Portland following
a three weeks illness.
A native ot Salem, Blun
dell was born November 24,
1894, and received his educa
tion in Salem schools. His par
ents were Thomas Henry Blun
dell and Margaret B. Blundell,
who died in January, 1952.
Blundell had spent almost
45 years with the California
Packing Corporation with all
but about two years of that
tlma in Salem. The only time
that he was away from here
was when he was named sup
erintendent of a plant In Lewis
ton, Idaho, in 1928. He came
from that position to Salcrn to
become superintendent here.
I He was a member of St.
Mark's Lutheran church, of
(Centlnned en Pare 5, Column 8)
Pricai 5c
ment. The Communists said
they regarded India, Pakistan,
Burma, and Indonesia as neu
tral countries which might take
cnarge ol the anti-Red prison
ers until their future has been
decided.
But the Communists refused
to nominate one of the four
countries unless the U. N.
agreed that the prisoners should
be transported to the custodian
nation instead of being kept in
Korea.
Nam II accused Harrison of
having rejected any Asiatic na
tion as prisoner custodian.
"That, of course, is not a true
statement," Harrison retorted,
. . We cannot see how
you could make other than de
liberately the untrue statement
we have Just heard from you."
May Seek Moscow Advice
Nam II gave no reason in
asking for the recess until Mon
day. In the past, however, the
North Korean and Chinese
Communist negotiators often
have asked such recesses so
they could seek instructions on
an important Issue from their
governments, which may, in
turn, seek guidance from Mos
cow.
Bombers Busy
Blasting Reds
Beoul (MB United Nations!
lighter bombers blasted Com -
munlit bridges, railroads e.na
supply targets today to climax
a week ot perfect combat ny- commission -would: be to study
ing.. 1 fr s tariff questions, 7 Eisenhower
Deadly Sabre Jet dive bomb- has asked a one-year exten
ers plummeted down on the sion of the present reciprocal
Haeju Peninsula in two attacks, trade agreements act pending
destroying eight buildings,
touching off three fires and two
explosions with 1,000 pound
bombs,
Thunderjets destroyed two
bridges on the Freedom Road
between Pyongyang and Sari-
won and broke rail lines in 14
places.
Australian Meteors ruined 221
buildings at a troop -concentra
tion area west of Chaeryong,
and Pantherjets dropped 27
tons of bombs on troop and
supply areas north of Suan.
Other flights hit Red fortifi
cations and sun emplacements
along the lS5-mi!e battleline.
The Far East Air Force re
ported that U. N. planes had
carried out all their missions
this week without losing a sin
gle aircraft in aerial battles or
to Communist ground fire. One
Sabre jet was lost because of
mechanical failure but the pilot
was rescued.
SALES UP, PROFITS DOWN
Seattle VP) Georgia-Pacific
Plywood Co. reports sales of
$15,354,773 and net profits of
$301,107 for the first quarter
this year. O. R. Cheatham, pres
ident, said the figures compared
with sales of $14,876,522 and
$602,969 net profits for the
same period last year.
Percy Blundell, manager
of California Packing Com
pany plant In Salem, who
died today.
I vmmiil mt foil ism iiihiiihi
F I N A L
EDITION
$33,000 Paid
For Property at
13th and Ferry
By FRED ZIMMERMAN .
The Salem school district
has purchased a tract of land
at 13th and Ferry streets from
Roy M. Lockenour where a
school administration building
will be built during the next
year, according to announce
in e n t Saturday by Gardner
Knapp, chairman of the board.
The tract has outside dimen
sions of 141 feet oa Ferry street
and 169 on 13th. Four old-type
dwellings are located on the
tract and it will be necessary
to remove all of them In order
to provide space for the new
building as well as off-street
parking.
Modest Structure
The land is located immedi
ately north across Ferry street
from the school district's shops,
formerly owned by the city.
This condition made the Lock-
(Continued on Pace 8, Colamn 4)
Asks Foreign
Policy Revised
Washington VP) President
Elsenhower asked congress
Saturday to set up a commla
Islon to make "a thorough re
examination ot our whole for
lelgn economic policy." .,t '
I Congressional leaden ol-
ImaaAit Vi ana a OHn&A 4ft 44s .
establishment ot such a group,
(to be nude ud ot three sen-
tors, three house member end
1 five persona appointed fey tne '
I presldonV , . :.;.
I x principal objective of tha
review of
tariff and related
questions.
Jef Airliner
Missing in Mia
New Delhi, India W British
Overseas Airways announced
that a Comet jet airliner which
left Calcutta for New Delhi Sat
urday is missing and has not
been heard from for six hours.
Reports received here said 38
persons were aboard a crew
of five and 33 passengers.
The local flying control said
contact with the plane was lost
within six minutes of its take
off from Calcutta's Dum Dum
Airport, and except for the fact
it must be within the Calcutta
area, nothing further is known.
Another Comet, a British-
built, four-englned jet, crash
ed during take off at Karachi,
Pakistaii, on March 3, killing
all the 11 persons aboard. That
one belonged to Canadian Paci
fic Airlines and was being dei
livered for the start of a trans
Pacific air route by that organ
ization. :
The Comets, built by de Hav-
iland, cruise at around BOO
miles an hour and have a range
of between 2,500 and 3,000
miles.
2 Northwest
POW Located
Tokyo VP) Two more Pa
cific northwest men were re
ported Saturday "in good
shape" at communist prison
camp in North Korea where
they still are being held by
the Reds.
Sgt. Harry A. Cutting, Belle
Plaine, la., who was released
by the communists last week,
gave a Kansas City Star cor
respondent a list of 75 Ameri
can prisoners he said he left
behind.
Cutting said he smuggled
tho list of names past the Reds
in a small notebook.
They Included Pfc. Henry
M. Lyman, whoso wife, Mar
tha B. Lyman, lives at 109 N.
Central, Olympla, Wash., and
Delwayne Codelington, Port
land, Ore, Lyman was with
the Second division when he
was taken prisoner.