Capita
THE WEATHER
Slightly warmer afternoon tern. '
H O AV E
EDITION
5th Yeor, No. 112 : SSSfAZSUSZ Salem, Oregon, Monday, May 11, 1953 IS Pages , Price' 5c
Loucks Seeks
Franzen Shift
to New Job
Mayor Denies He
. Is After Heads of
Other City Officials
By STEPHEN A. STONE
CUB SCOUTS ON PARADE
V
'A
A possible change in the city
administration that would em
ploy a new city manager and
shift the Dresent minirrr j. I.
Franzen, to a strictly engineer
ing position was described by
mayor Al Loucks today.
Tiie council, said Loucks, has
no intention to "fire" Franzen.
and he branded as untrue a re
port that the council is after
the heads of John Geren, water
department manager; J. H. Dav
is, city engineer; Alfred Mundt,
city recorder; Clyde A. Warren,
chief of police; and E. L. Smith,
chief of the fire department.,
Mayor Loucks, though adL
nutting some major disagree
ments with Franzen, said that
his and the council's confidence
in Franzen's ability and then:
trust in his integrity is so great
that they have asked him to
"look around for a suitable city
manager and bring in a recom
mendation" to the council.
To Make New Office
It is proposed very tentative
ly to create a position for Fran
zen by placing him in charge
of city engineering, sewage op
erations, and water administra
tion. This would not be a job
simply "to take care of Fran
zen," the mayor said, and it is
calculated that it might pay
him a salary of $7500 a year.
It would not cause the removal
of either City Engineer Davis
or Water Manager Geren, but
Franzen's salary would be off
set, It is suggested, by elimin
ating one man in the engineer
ing department and one in the
water office. "V
"In other words," said the
mayor, "Franzen would be in
charge of public works. That's
where his interest is mainly,
and as a technical man and an
engineer he is tops. He came
' here In 1847 , , when the eltv
needed"' a lot- of 'engineering
work done, and he has done it"
(Continued on Pate 5, Column S)
2 Cons Escape
Stale Prison
Two convicts escaped from
the Oregon State penitentiary
in separate actions Sunday
night and Monday morning
one by driving away in a pris
on truck and the other by walk
ing away from a labor crew
working in front of the prison.
Robert (Gill) Porter, classi
fied as a minimum trustee,
drove off in a prison pickup
truck about 10:15 Sunday eve
ning. He had been working
alone outside the wall opening
a plugged sewer drain. He is
serving terms of five years
and two years on charges of
obtaining money under false
pretenses in Klamath and Lin
coln counties.
He was not discovered as
missing until the 11 o'clock
count and apparently by that
time had found a hideout or
had gotten far enough away
to escape police road blocks.
He had still not been found
Monday noon.
Fifteen minutes of freedom
was all that was gained by
James Carney when he walked
away from a prison work crew
Monday morning about 10.
City and state police con
verged on the area soon after
the work crew guard reported
the walk-away escape and Car
ney was arrested by a state of
ficer as he walked down Mar
ket street.
Weather Forecast
For Slightly Warmer
There were blue skies and
bright sunshine, Monday, true,
the morninu minimum
barely skirted the freezing
mark in Salem, being recoraea
at 33 degrees. Scattered light
frosts were listed for some
areas as winter served notice
it is not quite ready ti give up
yet.
The forecast calls for fair
unthrr tonight and Tuesday
. with slightly warmer after
noon temperatures.
Saturday night and early
Sunday brought some more
rain, .09 of an inch being mea
sured, but the 24-hour period
ending at 10:30 a.m. Monday
had no precipitation witn smt-s
i j In tamnpra.
Clearing miu wuv.ci ,
tures setting in. Sunday's maxi
mum went only to 60 degrees.
w y
I p
- r
Lake Ore Ship
Sunk in Gate
Grand Marais. Minn. P
The iron ore-laden freighter
Henry Steinbrenner sank in
rough Lake Superior water off
Isle Royale early Monday,', v
S At 1:15' tEST) -17 of the 31
aboard had been reported res
cued, one body recovered and
a group"; or comes sigmea.
Grand Marais Coast .Guard
station reported ships at the
scene were, maneuvering in
heavy waves to pick up the
bodies. t
One rescue vessel, the Clem'
son, reported it nad' seven
crewmen aboard, none in bad
condition and expected to land
them at Sault St. Marie, Mich.
The William Sykes, another.
vesel at the scene, reported it
had "several" survivors.
Cross Burned
At Negro Home
Portland (U.R) The FBI and
the state attorney general's of
fice were called on today to aid
in the investigation of a wooden
.cross which was burned in the
yard of a wegro-iamny nere.
- The cross, about tnree leei
high and wrapped in a gasoline
soaked towel, was fired about
3 a. m; at the home of Charles
D. Gragg, who Tecently moved
into his home in the Park Rose
Heights district and has re
mained despite protests of
some neighbors.
.Officials of National Associa
tion for Advancement of Col
ored People said they had noti
fied the FBI and Attorney Gen
eral Robert Thornton of the in
cident.
Appraisers
Church Mall Property
Members of the state board
of control Monday agreed to
engage an appraiser to wont
with another appraiser picked
by the First Presbyterian
church to .make an appraisal
of state owned property which
the legislature authorized the
board to exchange for property
on Chemeketa and Winter
streets owned by the church.
If the two appraisers can
not agree on the values of the
properties involved, the board
has authorized tne two to se
lect a third man to work with
them.
The exchange of property
will make possible the exten
sion of the First Presbyterian
church and was approved ori
ginally at a joint meeting of
the board of control and the
capitol planning commission.
Adoption of a policy of
selecting architects to draw
nlans and supervise construe
tions of new state buildings
was demanded by State Trea
Top: Pack Six, Cub Scouts under the direction of troop
master Morrel Cf ary,' turn from State into Liberty street
during Saturday afternoon's parade. Lower: Pack 12, VFW
post, who tied with Keizer Lions club for first place in
their class, as they appeared in the downtown parade.
(See page 5 for story cf Boy Scout Circus.) .. 1
Control Tower at City
Airport
to
By JJtSiSd AllET- AGEE
., Every plane -.landing;; and
taking off from Salem's air
port will be on its own before
too long.
. The CAA control tower,
which has been controlling air
traffic .there, is apparently to
be discontinued as one of the
economy moves of the civil
Tornadoes Kill
11 in 7 States
' (Bj United Pre
- Tornadoes and windstorms
that killed 11 persons and in
jured at least 180 left a pat
tern of destruction today in
seven states. '
Minnesota, where nine per
sons were killed, was hit hard
est. Eight of the victims were
killed in tornadoes and the
ninth in a violent wind.
Wisconsin reported two dead
and at least 16 injured.
Other tornadoes hop-sklppea
through Iowa, Arkansas ana
South Dakota last night. Satur
day night twisters struck in
Kansas and Nebraska, injuring
150 persons at Hebron, Neb.,
and "almost blowing the town
off the map."
Six members of one lamuy
were Kinea souin iu nuuu
dale, Minn., when a twister
splintered their home and
tossed their bodies 100 feet.
to Value
surer Sig unander wnen dis
cussion of the state building
program came up for discus
sion. Roy Mills, secretary of the
board, said that Morton Caine,
Portland architect, had per
formed some preliminary work
on the proposed hospital build
ings for the former board and
therefore the board felt that
Caine should have special con
sideration.
Unander objected to this pro
ccdure but Governor Patterson
said that he would withhold
his opinion until he had read
the minutes of the meeting at
which Caine was instructed to
make the preliminary studies.
The gbvernor also instructed
Mills to present a review of the
work performed by architects
on state jobs in the past in or
der that the governor might
have some knowledge of the
compentance of the various ar
chltccts.
(Concluded on Pte t, Column I)
aeronautics authority.,
Exact date of the dlscontln
uahce of the tower has not
been received , by those in
charge of its operation, but
Monday the chief controller,
Stanley Dilatush, received
word from R. D. Bedinger. re'
glonal administrator, that the
tower was to be closed on or
before June 30. '
Up until that time, all the
CAA personnel in. Salem
knew' was what they heard
as rumors or what they "read
in the newspapers."
A wire story out of Seattle
Saturday had listed Salem as
having a CAA installation that
was included in "staff reduc
tions in the nationwide econ
omy move." The story out
of Seattle further stated . . .
the Salem office will be wip
ed out unless city officials de
cide to take over and pay
the six persons working
there."
Only Dilatush and four oth
er controllers have been em
ployed at the local tower for
almost two years, so it is as
sumed that included also in
the group is the maintenance
man for the newly installed
instrument landing system the
weather bureau teletypes and
the control tower equipment.
Warren Murray holds that
position, at the airport. . Mur
ray came to Salem March 16
of this year to replace Louis
Jacobsen, who left to take a
positoin with TWA in Kansas
City, Mo.
(Continued on Page 5, Column 4)
Retail Food
Prices Dropping
Washington (P) The Agri
culture Department reported
today that retail food costs have
dropped to the lowest level
since December, 1950, largely
reflecting lower farm prices.
A fixed quantity of food that
cost an average of $735 in 1952
could be bought for $701 by
April this year, the agency
said. Last July the cost naa
climbed to a record $755.
Lower nriccs of beef were
said to have accounted for
much of the decline. Other
foods that now bear lower
price tags were said to include
some dairy and poultry pro
ducts. The department said farm
prices of food products were 10
per cent lower In the first three
months of 1953 than in the cor
responding quarter last year.
But retail prices were down
only 3 per cent, largely because
marketing charges were 3 per
cent higher.
Buy Land for
Purchase of 30 acres of land
on McLoughlin boulevard near
MllwaiilrlA hu 4ha otntA llnnni
commission for establishment
of its entire plant, was author
ized Monday by the state board
oi control.'
JChe property to.be purchased
is now owned by the govern
ment and has been declared
surplus. The liquor commis
sion plans to retain 10 acres' of
the plot and sell the remainder
of the land
Members of the liquor com
mission told the board mem
bers that they expected to pur
chase the 10 acres at a price be
tween $20,000 and $25,000.
The property is directly
across the highway from the
International Harvester plant
near Milwaukie. Presently the
commission has its warehouse
and main offices in the old
Ford plant in Portland.
Commission members said
that they had offers both to
buy and lease the present build.
ing. Governor Paul L. Patter
son advocated sale of the build
ing declaring "if the state holds
on to property it doesn't need
soon it will be in as bad a po
sition as the federal govern
ment." Members of the commission
told the board that they would
submit all offers to purchase
or lease the present building to
the board at a later date for
consideration.
Ike Pleads for
Slum Clearance
Washington UP) President
Eisenhower said today Amer
icans of all parties now accept
"as a moral obligation" the task
of "providing decent housing
for those now compelled to
live In slums."
"It is to the work of citi
zens' groups, so often under
taken In a voluntary basis,"
Eisenhower added, "that we
rightfully look for construc
tive and long-term solutions to
problems such as these."
Eisenhower's statement was
In a letter to Olin Linn, presi
dent of the National Housing
Conference, Inc., as the con
ference gathered here for a
two-day annual meeting.
The brief presidential letter
made no mention of the ad
ministration request to Con
gress for continuation of the
controversial federal low-rent
housing program at 35,000 new
units in the fiscal year start
ing next July 1. This Is the
same rate as the current fiscal
year.
The House voted to deny all
funds for the program next
year. But in the Senate, an
appropriations sub committee
has acted to restore funds at
the 35,000-unit rate. The full
appropriations committee con
siders this decision today.
SmithStewart
Reappointment
By JAMES D.OLSON
Governor Paul L. Patterson
Monday nominated Ray Smith
and Sam Stewart for reappoint
ment to the state tax commis
sion lor terms of four years
eacn. Tne nomination was
seconded by Secretary of State
Earl T. Newbry and although
State Treasurer Sic Unander
said that he had no objections
to the nominations he desired
a few days further to investi
gate the matter. . -
As a result the nominations
will be discussed further at a
meeting of the board members
Thursday morning. .
The 1953 legislature enacted
legislation which places the tax
commission, under the sole
jurisdiction of the governor
but this law is not effective
until July 8, 1BS3. "
Thegovernor told the board
in view of this law he felt he
should take the lead In nomin
ating the tax commissioners
whose terms expire June 4. He
said that he felt the two present
members were entitled to know
it they were going to be reap
pointed or not.
Governor Investigates
Governor Patterson said that
since the end of the- recent
legislature ' he had made
thorough investigation of the
tux commission.
"I found that Ray Smith has
re-organized the income dlvi
slon of the tax commission and
has done a most satisfactory
MnVi ' Via snlri. -
(Continued on Pace S, Column
To Be Trimmed
A Marion county budget that
is $159,218 over the 6 percent
allowable by law. will be up
for consideration May 18 when
the budget committee holds the
first of a series of hearings, ac
cording to announcement by
Judge Rex Hartley.
The budget committee in
cludes members of the county
court Judge Hartley and
Commissioners E. L. Rogers
and Roy Rice; Delmer David
son of the Talbot area: Pat Mc
Loughlin of Woodburn and Lo
yal Warner of Salem. Harley
Libby, Who will become a
member of the committee July
1 is expected to sit in as an
observer.
Total requirements as con
tained in the budget are $3,-
191,609. From this may be de.
ducted estimated revenues of
$927,281, and an expendable
surplus of $816,250, leaving a
proposed levy of $1,448,078.
There is a possibility that
the revenue may be increased
a bit, the budget having been
set up several weeks ago be
fore all of the anticipated
receipts could be properly tab
ulated. Of the expendable sur
plus, $816,250 is earmarked for
construction of the courthouse.
A year ago the levy was $1,
215,905. Weather Details
Mftilmim yuttrdftr Mi minimum to
dar, M. TUI 14-bar prcelDltattom .
for montht .2i narmal, .74. fltMon pr
tftlUtlon, M.Ml normal. MM, River
holthi, g. ct. (Report bt U.S. Weather
Barea.)
Countv budget
Heavy Bonded Debt
Hikes Interest Rate
When the bond rating of a
municipality, like a city or a
school district, goes down its
bond interest rate goes up.
Which means that when its
bonds become less desirable as
investments the municipality
has to pay more interest when
it sells them.
That has happened in Salem.
The reason for it is mainly
the recent large bond issues by
the Salem school district in its
building program. The large
issues have attracted the atten
tion of Moody's Investors Sorv
lce, which is the bible of In
vestment brokers, with the re
sult that Moody's has reduced
Salem's- rating from "A" to
"BAA," so Salem bonds are
not as tempting to investors as
they were a year or two ago.
The city administration has
,
73 Red Stars
On Sabre jet
Flown by Ace
V. S. Sabre Jet Base. Korea.
W) Capt Manuel Fernandez
had a crewman paint two more
red stars on his Sabre Jet fight
er Monday one of them rep
resenting his 13th Red MIG jet
destroyed that broke the
world's record.
The Miami, Fla., pilot said
he "sure would like to see 20
more there."
"Do you think you can shoot
down 20 more?" hewas asked.
"Well, that depends on the
MIGS," Fernandez shot back.
Then the stocky pilot kidded
with Airman First Class Lewis
W. French of Kokomo, Ind., his
crew chief.
"Looks like you're running
out of room there," he joshed
as French painted the 15th and
16th stars under the pilot's can
opy. The extra three stars are
for two more MIGS probably
destroyed and one damaged. He
scored a probable Sunday.
Panmunjom, Korea (UR
The United Nations command
told the Communists today
their plan to end the prisoner
exchange deadlock was word
ed too vaguely and asked for a
more direct proposal.
Lt. Gen. William K. Harrl-
senior UN truce delegate,
said' that as it stands now the
Communists' ,ei8ht-Pmt , Pla
i ik TiriT n Tinu i rsmmiiii ran
The ' Communists' chief
spokesman. North Korean, Gen.
Nam U. said it m'tmneces-
eary to repeat" tbelr proposal,
which... would give a post-ar
mistice .'political 'Commission
the job of determining finally
what to do with anti-Red al'
lied captives who do not want
to eo home.
Other than this. Nam had
little to say during the 53-min
ute conference and his unwll
lingness to reply to Harrison
questioning seemed to tighten
the deadlock blocking a truce
in Korea.
Harrison, who never raises
his voice, got down to bust'
ness as soon as he stepped into
the truce hut.
Bowles Reports
On Asian Crisis
Washington UP) Chester
Bowles, former ambassador to
India, said at the White House
Monday the fight against Com
munism in Asia is going, better
from a military standpoint than
it was a year ago.
Bowles talked to newsmen
after a 45-minute conference
with President Eisenhower. He
has just returned to the United
States after serving as envoy
in New Delhi during the Tru
man administration. On the trip
back, Bowles spent six weeks
touring Southeast Asia and
Japan.
Bowles said he gave Elsen
hower "a little report on the
situation as we see it" in Asia,
but he added it would not be
proper for him to relate their
conversation.
Issued no new general obliga
tion bonds since a $1,630,000
authorization in 1950, but the
city was then on the favor
able side and it pays Interest
on those of only IVi per cent
on part of them and Hi on
part. .
The school district on its lat
est issue pays an average of
2 per cent, which is about
one-half of 1 per cent more
than on the issue just previous
to that.
Since the bonds are oblige'
tions of municipalities that
overlap each other the bonds
are known as an "overlapping
debt." For that reason the city
of Salem would also have to
pay a higher Interest rate on
any new general obligation is
sue. (Concluded on Pag t. Column I)
Informal Meet
In Atmosphere
Of Informality
London W) Prime Minis
ter Churchill said Monday ha
is in favor of a high level
conference of the leading pow
ers without any great delay.
In a : house of . commons
speech on foreign policy,
Churchill said the high level
conference should not be ham
pered by any long agenda,
and should be carried out in'
an atmosphere of informality
and privacy and even seclu
sion. Churchill was not specific,
but supposedly meant he
should get together with Pres
ident Eisenhower and Premier
Malenkov. He referred to a
"conference at the highest
level of the leading powers."
For Better Understanding
. Churchill said this confer
ence might not come to any
hard agreement but at least it
would lead to a better under
standing. The prime minister review
ed what he called the "change -
In attitude and, we all hoped,
mood" that ' has taken place
in Soviet Russia : and . the
Kremlin itself since the death
of Stalin.
He appealed for 'caution in
'doing or saying" anything that
might give the Soviet leaders
ground for suipiclan. He. said
it would be a mistake to as
sume that nothing could be
settled unless or until every
thing is settled." ,
(Centlmted on Pago 8, Cotama I)
il .Vf.:j U .
'it CairO ' (U.B Secretary : of
State John Foster Dulles said
on his arrivel here today Am
erica regarded Egypt's Premier
Mohammed Naguib as "one of
the outstanding leaders in the
free world." -. "
Dulles, the first American
secretary of state to visit Egypt
landed at Cairo airport with
Mutual Security Administrator
Harold Stassen on the first leg
of their Middle East tour. - -
They arrived only a few
hours after Naguib had said
Egypt was ready to fight Brit
ain to win Egyptian sovereign
ty over the Suez Canal Zone.
Plenty of Work
"Perhaps my visit here will
help clear up some misunder
standings," Dulles said.
"Mr. Stassen and I are hap
py that your government gra
ciously invited us to Egypt and
that we were ablo to accept at
this time when President El
senhower's administration has
plenty of work to do," Dulles
read from a prepared state
ment.
"We have much legislation to
work out, and this is the first
time for 20 years that a repub
lican president and a republi
can congress have had to work
together."
$10,000a Year
Salary Hikes
Washington WV-The senate
judiciary committee Monday
approved a bill by Sen. McCar-
ran (D., Nev.) increasing sal
aries of all members of congress s
and federal judges by $10,000 a
year..
The measure also would raise
salaries of U, S. attorneys over
the country to a maximum of
$20,000. . ,
Salaries of the 98 senators
and 435 house members would
be $25,000 a year under the
bill. They now get $12,500 sal-
nry and $2,500 expense money,
wnicn is an lumped together as
taxable compensation.
The committee said the net
cost of this congressional pay
boost would be $3,638,258 an
nually. The only exception to the
$10,000 pay hike for judges un
der the bill would be the chief
justice of the U. S. Supreme
Court who would get an annual
increase of $14,500.
This would take him up to
$40,000 a year. The boost is
designed to put him on a par
with the vice president and the
house speaker, both of whom
now get $30,000 annual salary
and a $10,000 expense allowance.