Mi si if-, .K 1 in1 THE WEATHER CLEARING TONIGHT, becom ing mostly fair and warmer Saturday. Low tonight, 38: Ugh Saturday, 66. , FINAL EDITION 10 65th Year, No. 110 tSffASS Salem, Oregon, Friday, May 8, 1953 20 . . rnce 5c P. Vfl GJLL JJ IL AIULIL FW VAWiJ. 11 . . .' . 1 Senator Told Budget Can't Be Balanced Humphrey Says National Defense Won't Be Sacrificed BOY GOVERNOR SWORN IN MlimSJb temkBhsi ::ployer$ in Die Saved $15,000,000 ; - 10,708 Employers As- signed Lower Unem ' 1 ployment Tax Rates i , By JAMES D. OLSON ; With the average unemploy y neat compensation rates edg- tag lower, savings to Oregon's . severed employers are expect ' eC to pass 615 millions In 1953, . . according to the state anem ; yleyasent compensation cora t salaalon Friday. This the com- mission added, would bring the i: total savings to employers for ., II years of experience rating - close ; to the $100 million ! mark, t Unemployment taxes based ' on covered payrolls that may . total $1,300,000,000 this year slop at $10,968,760, lowest since, i , ana comparing wnn pay ments to insured workers ag gregating .$16,132,400 in the past 12 months. - Below Normal . . Rates below the normal 2.7 '' percent will go to 10,708 iirms In 1953, while f,244 others have the requisite four years' ! experience but lack the neces- ' lary reserves. : The remainder of 5,034 concerns are newly . . covered.' . , Nearly half of the employ- , ers sharing in this year's re- ductions are paying at the low est rate of 0.3 per cent, while . 2,631- others have been assign ed rates under one percent This group of employers enjoy- iug the reduced rates will pay to the benefit fund only $2, 868,866 as compared with . a ' normal assessment of 2.7 per il cent) of $15,485,129. . (Osatinned on Face 5, Colamn ) stiver Weekend i f f Mostly fair weather and (lightly warmer temperatures I'-; re in the offing for tonight and I" Saturday in Salem and vicln-i-f lty following a week that has '(" Offered , weather pranks of i March, albeit it is May. The five-day forecast calls ' .: for some showers probably by i late Sunday, otherwise, fair f weather and little above nor ' temperatures. . Thursday really "cooled off" ' for Salem, the maximum go ing only to 56 degrees, against : a maximum of 87 earlier in the Showers continued through Thursday with a total of .07 of : an Inch of rain measured in Salem for the 24 hours ending at 10:30 a.m. Friday. Summer-Like v Weather Rules .!' " ' Br The AuoeltUd Prui) ' : More rain fell today in the eastern quarter of the coun ' try and in a few sots In the northwest, but fair and pleas- : and weather was general in i most other sections of the i country. . It was summer-like in wide ' areas of the mid-continent. ' Fair and mild weather pre : vailed over the Mississippi : valley from the Canadian bor i I' der to the Gulf. It was 86 in s ? Puluth, Minn., yesterday. Fair ' leather also was reported in ; the Great Plains, Central and v Southern sections of the Hock .; les, along the Pacific coast i i slates and the southwest. ' Showers hit areas from the I southern parts of the Great i s Lakes region eastward through ! ' News York, Pennsylvania and t New England. Thunderstorms f; ! were reported in the south ! 'eastern states but the only i- ;area meorting fairly heavy ' (alls was Miami with more ' than a half inch. j Christine Hopes to h llarry Some Day v' Los Angeles Christine ; Jnrnpn. who was George Jorgensen before a series of operations in Denmark, hopes f to marry some aay. ' , But the has no boy friends, ' only acquaintances, she told a - mtwAeA nress conference I Thursday In advance of her debut Friday as a stage enter- J tamer. Weather Details . Muknn eilrf. Si mlnliuM 1. S. ii. T.nl ll-Mr prMlpllitUm . tm miOii .48i nmtl M. Mi ft MteMa. M.ftl nvrmali SA-M- SHtr amkt, S4 ImI. (Rtxri C.S. Wutbn Washington VP) Secretary of the Treasury George M. Humphrey told Senators Fri day the budget for the next fiscal year cannot and should not be balanced. Chairman Wiley (R-Wls.) of the Foreign Relations Commu te reported this after Humph rey testified before the group opposing any cuts in the foreign aid program beyond those already made by Presi dent Elsenhower. "Although I am distressed that we cannot balance the budget this year I do not be "?,Ye tt should be balanced," Wiley minteH the Trentnrv Wiley quoted the Treasury sec. retary as saying. f'The risks that would in volve our security would sim ply be too great" Wilson Agrees with Humphrey While Humphrey was before the senators, Secretary of De fense Wilson told the House Foreign Affairs Committee he is giving a Afresh look" at (Concluded an Page S, CoL 8) Laborites Gain In City Elections London VP) The Labor Par ty rolled up sweeping gains Friday both in London and the provinces in local council elec tions In England and Wales. As a result, laborites are expected to step up demands for new national elections. The nearly ' completed re turns dealt a sharp blow to Prime' Minister Churchill's Conservative Party. Voting be gan Monday and was conclud ed Thursday. Labor's gains also swept out much of the small Communist representation, on the councils Voting in London was for the composition of 28 borough councils. There was no contest in 24 of the city's 353 wards. Identify Four CollisionVidims Harwich, England W Po lice announced today tne identification of three Amer ican women and one German killed in the British steamer Duke of York during a North Sea collision Wednesday. An other American, an air force lieutenant, is missing and be lieved drowned. The American victims were identified as Miss Gllda Jor det, 49, of Rocky Ford, Colo.; Miss Bernlce Viola Larson, 49, of La Crosse, Wis., and Miss Ann Spring, 29, of Hon olulu, Hawaii. Miss Spring's body was iden tified by a fellow traveler, Richard Healey. She was a U.S. government employe in Germany. A spokesman for the U.S. Third air force said the Amer ican missing and feared drowned is Lt. Dale Cheney of Kellogg, Idaho. He was traveling from Germany to Britain and was believed to have been on the Duke of York. Cities Told to Watch Cost of Liquor by Drink City administrations of Ore gon were aavisea inursaay night to keep a careful check on the cost ol liquor law en forcement after liquor-by-the drink becomes effective May 11. If the cost Is greater than un der the present system, then, the cities were told, the League of Oregon Cities should go al ter another 5 per cent cut from profits of the net liquor com mission revenues. The advice came from Mayor Edwin Johnson of Eugene, pre sident of the League ol Oregon Cities, in his address before a reclnnal meeting of the league in the Minor Room at the Ma rion Hotel. The mayor had reference to the present law, enacted by the 1949 legislature, whereby cities receive s Der cent of that profit. They asked for 10 per cent at - ' Am- West Germany To Ratify Pad Bonn Germany After two weeks of behind-the-scenes po litical maneuvering, parliamen tary officials reported Friday nieht the way has been cleared for West Germany to ratify the Europeau Army treaty. ) Minister - President Gover nor Reinhold Maier of Baden Wuerttemberg, who controls, a decisive block of votes in the Bundesrat upper house of par liament has agreed that his chamber will vote again May 22 on the treaty to recruit 500: 000 German soldiers for west ern defense, these officials said, Maier's five votes in the 38- member Bundesrat tipped the balance against the army past and the companion Allied-West German peace contract wnen they came up for a vote April 24. The nonularly-elected Bun destag lower house of parlia ment already has approved tne treaties. Slayer of Five Gets Lawyer Canandaieua. N. Y. W Fred Eugene McManus, admitted slayer of five, respectfully agreed to accept court-assigned counsel Friday as he made a brief appearance in State Su preme Court on a first-degree murder charge. The 18-year-old Valley Stream, L. I., youth, who seem ed calm and rested, was in court only a minute. Justice H. Douglass van Duser ad journed the case until Wednes day, and indicated that he would assign counsel, accept McManus' plea and set a trial date at that time. State liquor revenue alloca tions to cities come from four sources; namely, manufactur ers' and Importers taxes; per mlt fees; 5 per cent of the net liquor commission revenues; and license taxes. It is estimated that alloca tions from the first three sour ces will total $882,000, or $1.03 per capita, during the fiscal year beginning July 1, 1953. President Johnson covered the field of municipal problems in his talk and predicted that in the next 10 years Oregon cities would expand as much by annexation of outlying districts as they have in the last 10 years, which, in his own city of Eugene has almost doubled the city area. The area of Sa lem also has expanded widely by adding new acreage and residential and business devel opments. ,YMCA Boy Governor Kent Hotaiing of Eugene was sworn in as Boy Governor of the State of Oregon at 10:51 a.m. Friday by Chief Justice Earl C. Latourette, Oregon Supreme Court. A speech by Governor Paul Patterson and Boy Governor Hotaiing followed. The picture below : shows Governor Patterson being escorted into the legis latyve hall by Romaine Lovelace of Reedsport and Merle Greenstein of Portland. Boy-Governor Opposes Voting W-Year-Olds . , ; . : By DAVID " ''The members pt this legis lature will be the future lead ers of this state and our na tion. This nation has been strong in the past and it will be stronger in the future, thiv:gh the combined efforts of us and others like us wno strive to put forth ideas of a democratic society," Boy uov- ernor Kent Hotaiing of Eugene Voice Official Resigns Post Washington OT William O. Johnstone, Jr., quit Friday as chief of overseas operations for the State Department's Inter national Information Program, which includes the Voice of America. He is the second top deputy administrator to resign since Dr. Robert L. Johnson, former president of Temple Universi ty, took over as head of the information service. Reed Harris, the other depu ty, stepped out last month. Har ris had tangled with Sen. Mc-( Carthy (R.-Wis.) over his work for the Voice program. " Johnstone told a reporter his resignation had nothing to do with the current shakeup of the information service. He said he submitted it sev- eral day ago for "purely per sonal reasons," to be effective Friday. Benson Denies Hitting Supports Washington VP) Replying to congressional criticism, Secretary of Agriculture Ben son denies that he is attacking present farm price support programs or Ignoring Presi dent Eisenhower's campaign nromises. He said so in a letter to Sen. Young (R.. N.D.). one of Ben son's critics, who made the letter public Friday. Along with other farm state lawmakers, many of them democrats, Young had pro tested that Benson was attack ing the price supports enacted by congress and appeared to be in conflict with Eisenhow er's public statements. "As far as the price suppon program "is concerned," Ben son wrote Young, "I construe my position not as that of at-lo-Wlnff the nresent price SUP- Dort program, but as that of searching for something bet ter." . . 'A I BLACKMEB told members of the YMCA Youth Legislature assembled in the house of representative .1 1 1. PUnl Kllll. !,r ""'-'I..- Mm views of legislation before the lawmakers, "I am not In favor of lowering the voting age to 18. 1 make this statement after careful consideration of all the facts at my command. Eighteen year olds are capable of vot ing intelligently, but the large majority of us, though we may be capable of fighting a war, have not the maturity or ex perience to vote wisely on mat ters of not only our state and country, but also of the world." Governor Paul Patterson spoke briefly to the YMCA legislators and termed the leg islature as "a worthwhile project." "I urge you to take your legislative lesson here se riously as the state of the na tion Is not good," the governor said. Friday afternoon the bills were hashed over Dy me youths in the various eight committees. (Concluded on Page 5. Colamn 4) Mary Pickford Here Saturday Mary Pickford, one of the great personalities of motion picture history, will visit Sa lem Saturday, in connection with a nation-wide campaign of women volunteers to sign up savings bond buyers under the bond-a-month plan. She will drive here from Portland during the forenoon and attend a luncheon being arranged in her honor. Mrs. Paul T. Patterson, wife of the governor, will be an honored guest. Miss Pickford will leave shortly afterward for Eugene where she v111 board an even ing train for California. Americas swcemeari- is associate - national chairman of the Womcn't Crusade for Security, of which Mrs. Dwight D. Eisenhower, wife of the president, is honorary national chairman. She Is making the official tour to contact those who will take part in the com ing drive, which will be this month. Miss Pickford left Washing. ton, D. C. March 31 after being received at the White House by Mrs. Eisenhower and then at tending a dinner in her honor at the Mayflower Hotel. Her original schedule called for visiting 12 leading cities but in Oregon her Portland stop was shortened to permit going. to Salem and Eugene. Red Invasion Of Laos Ends With Retreat Hanoi, Indochina W) The end of the communist Invasion of Laos, without a major bat tle and virtually without cas ualties, seemed to be just around the corner Friday. So far lt has been one of history's strangest tries at conquest. Communist -led Vietminh troops which overran one- third of the Indochlnese king dom in a 25-day march were continuing to pull out of the heart of the little mountain state, heading towards the Black and upper Red rivers in northwestern Indochina, their original jumpoff bases. Due to Supply Problem The French thought the communists had run into sup ply problems. -; Well-informed, non-military sources said the Vietminh al ready has withdrawn two di visions, half their initial in vasion force, . into northern Laos and the tempo of the movement is increasing. The vietminh began ta attack on Tjin. w. .n ,mai , divisions, or more than 40,000 1 soldiers. . I (Concluded an Face (, Column I) Egypt on Suez London iP) Britain . has warned', Egypt that talks on evacuation.. of , Britain's Site Canal ministry base may col lapse unless Premier ' Naguib backs down on his demand for Egyptian control without f strings attached. British In. formants said Friday. Sources In touch with the flagging. Cairo discussions in dicated Britain's ' negotiators, Ambassador Sir Ralph Stev enson and Gen. Sir Brian Rob ertson, told Naguib Thursday that only a softening of what the British describe as Egyp- tioan stubbornness could open a way to further takls. The parleys, which started in the Egyptian capital April 27, have teetered on. the edge of a breakdown since Wednes day when they were recessed without setting a new meet ing date. Cat! for Bids on Umpqua Road Portland (IP) The Bureau of Public Roads said Friday that bids would be opened here May 22 on two bridges on a timber access road in eastern Douglas County. They are on the Steamboat Creek Road, which connects with th North Umpqua High way about 40 miles east of Roseburg. One will be a 165 foot structure across Canton Creek, the other a 120-foot spon over Steelhead creek . Reclamation Bureau Projects Eliminated Washlnaton (Pi Reclama-i tion Bureau officials have told the Senate a proposed appro- priatlon cut would eliminate one-third of the bureau's pro ject investigations planned dur ing the coming year. The cuts voted by the House also would have drastic effects on additional project investiga tions, the officials told a Sen ate appropriations subcommit tee at a hearing Thursday on Interior Department appropri ations requested for the year beginning July 1. Former President Truman re. quested $6,250,000 for Recla mation Bureau project surveys, investigations, engineering, re. search, and planning. The Ei senhower budget cut it to 4 million, and the House to 2 million. 3 Red Migs Damaged in Ait Battles Seoul VP) U. S.' Sabre jet pilots damaged three Commun ist MIGs in battle high over Northwest Korea Friday. It was the first time in eight days Red fighters ventured across the Yalu River from their Man churian sanctuary. There has been speculation that Red pilots were being put through an intensive loyalty check because of a U. N. com mand offer of $50,000 to Com munist fliers delivering MIGs to the Allies with a $50,000 bonus for the first plane. U. S. Seventh Division in fantrymen smashed a Commun ist attack by possibly 300 men on Porkchop Hill in the biggest action in days along the stag nant ground front. Red Proposal Being Studied WnsVilnotnn (PUThe United States was reported Friday to have instructed the United 1 Nations command in Korea to seek clarification of some pro visions ox uit ciKiivpuiufr cum- munist plan for . handling prisoners of war after . an armistice. - s Authoritative Informants in dicated that this step was pre liminary to the expected for - mulatlon of U.N. counter - pro posals which would aim at:- 1. Eliminating a section oximoXrow that the communists v the communist plan, under I give a firm guarantee against wnicn communist roianu ana Chechoslovakia would be per- mlttea to put troops into sown Korea for the purpose of help ing handle prisoners of war who refused to go some, 2. Providing some arrange ment which would assure free dom within a. reasonable .time for those POWs, now estimat ed at 48,500; who refuse to return.. . President Eisenhower, who held an -urgent conference on the Korean . truce situation with his top military and dip. lomatie advisers late Thurs-1 dnv. met with his full cabinet in regular weekly session ti day and had further oppor tunity to discuss the situation with top pollcymaners. Twin Jet Climbs 63,668 Feet London VP) A Brftish twin- jet Canberra bomber climbed to 63,668 feet, bettering tne world aircraft altitude record by 4,222 feet, the Royal Aero Club announced Friday. The flight was made last Monday from Fllton airfield, near Bristol, with W. F. Gibb, assistant chief test pilot of the Bristol Aeroplane company, at the controls. The plane was fitted with Bristol Olym pus engines. The present record was set by Britain's John Cunning ham on March 23, 1948, in a Vampire jet fighter. He reach ed 59,446 feet. It took Gibb 45 minutes to climb the full altitude more than 12 miles. Bureau officials said the House reduction would force elimination ol surveys ana in- vestigations during the next year including surveys of the Clark Fork Basin in Idaho and Montana, Lower Klamath River and adjacent basins in Oregon. Investigations of the Chief Joseph Dam and greater Wen- atchee division in Washington; Upper Burnt River project, In Oregon, Minidoka project in Idaho. Investigations in Alaska in. eluding the Lawing, Susitna River Basin, Wickersham, stream gauging on Wood Can yon and Yukon River Basin. Sen. Watklns R. Utah told the committee the Utah dele gation will back a move to re- I store investigation funds which 'were cut in the House. Most Complex Test Yet Held in Nevada Desert Las Vegas, Nev. VP) In one of the most complex atomio tests yet held, a powerful A bomb exploded Friday over a make-believe forest and simu lated military installations at Nevada Proving Ground. As a record contingent of 100 Air Force' planes circled high overhead, the bomb-drop- pea from a B-50 bomber burst at about 2,500 feet above Frenchman Flat with a bril liance that outdazzled the day light at 7:30 a.m. PST. Two thousand Army troops. 200 military and - Industrial observers and 15 congressmen, stationed at 9,800 yards near ly . six miles from the blast, came through unscathed, the Atomic Energy Commission re ported. , . , .. f ; Forests and Bunker ' The pine tres were brought to the site several weks ago and arranged to simulate a forest on the dry desert floor. There ' was no immediate account of eHect on the forest, (twmunwa on race S. Column 7) Truce Meeting Set Saturday, 1 Panmunlom, Korea e).B . - xhe United Nations will d- lmand at a truce meeting to- i any attempt to force repatrlac tlon of anti-Red war prisoners. m was understood tonight. The demand would be made in reply to an elgHT point com munist proposal on disposition of the anti-Red prisoners which the Peiping radio hailed as laying the basis for "imme diately bringing up." ' it is Deueved that lt. uen. William K. Harrison, senior ' V.N. truce delegate, will give the allied reply to the chief communist - negotiator,' - Gen. Nam II, at a truce meeting 'scheduled for 11 a.m. tomor row, 7 p.m.. today PDT. ; Harrison is expected to fire at Nam a series of searching questions as to the commu nists' real intention in pro posing that the fate of the anticommunist prisoners who refuse repatriation be put up to a political conference. Buenos Aires Bomb Blasts Buenos Aires VP) A bomb exploded . in a Buenos Aires suburb early Friday, injuring four persons. It was the 14th bomb explosion set off here la " two months. The latest incident followed series of arrests by police and a claim Wednesday that they had broken a plot by politicians to terrorize the city. New arrests Friday In cluded leaders of the Conserv ative and Radical parties, which oppose the government of President Juan D. Peron. The latest explosion occur ; red shortly after midnight In a residential street In Bel grano, causing Injuries to three pajsersby and an elderly man sleeping in his home next door. There was no imme diate explanation for the bombing. Seventeen persons were re ported arrested Friday, bring ing the estimated total to 167 in the past few days. Police said they found stores of bombs and other weapons in raids on some politicians' homes. $40 Million Loan to Japan to Buy Cotton Washington VP) The export Import bank announced Fri day that arrangements have been completed for a 40 mil lion dollar loan to Japan to be used for the purchase of American cotton. The loan Is at 3 per cent Interest and il to be repaid In 15 months. The export-Import bank has made the funds avail able to the Bank of Japan I -ft m il 1; Si that time, but got oniy nan. (Continued on Page S, Column 6)