Capital journal. (Salem, Or.) 1919-1980, January 21, 1956, Image 1

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Capital journal., January 21, 1956, Image 1

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Newspaper Page TextTHE WEATHER. SHOWERS, PAKTIAL deariaf to Bight, early Sufey taenia;, he earning cla4y will rata by saaday iterswap or ereaiag. CUanr4 snlM. Law laal(hl, tf; high 8- ar. a. . 3 SECTIONS ,24 Pages 68th Year, No. 18 . : Solem, Oregon, Saturday, January 21, 1956 iST'A'CrMS, Price 5e Tax Impact On Farmers Gets Study State Interim Body to Make i New Study By, J AMES D. OLSOri A study on the impact of state taxes on farmers was orders) by thai legislative interim committee on taxation at its meeting at the State Capitol Saturday. Senator Phil Lowry told the com mittee that farmers in Oregon are alarmed over the sharp increases in their state taxes. . "We hear a great deal about the impact of higher state taxes on Oregon individuals and corpor situation with which they are con fronted." Lowry said that the increased taxes on farm property is par ticularly alarming due to the gen eral slump in farm prices. , senator Rudie wilhelm, cnatr. Flooding Threat : Remains Heavy Rainfall Could Bring Damage By MARIAN LOWRY FISCHER Thrent nf another - dnmnffintf man of the committee instructed flood continues to haunt the Salem Thure Lindstrom, Jr., tax analyist arel 0f the valley as it does in for the committee, to confere with! ,ji western Oregon because the staff members of the Oregon State College who have gathered consid erable data on the farm tax pro blem in Oregon, and report to the committee at its next meeting. Wilhelm has appointed sub-committees to make detailed studies of various facets of the tax pro blems in this state, and said that it would be several months before all reports from this committee will be ready for consideration by aliens but we have not heard about entlrek the farmers," he said, "However, there have been many area meetings throughout the state where the farmers have gathered and discussed the tax Second Man Released in Robbery Case Ownership of Gun Not Sufficient Evidence To Hold Suspect - Grocer Dean McFarland will probably carry a permanent souv enier of his battle with a hold-up man at his Keizer area grocery store Thursday night, his phy sician said Fridav. McFarland, reported making "satisfactory"' recovery at Salem General hospital from a bullet wound suffered in the battle, will keep the slug where it now rests in his abdomen unless it later should cause Turn trouble, his doc tor said. The bullet entered Mc Farland's lower left chest and coursed downward, perforating his stomach, the doctor said. Gradv William Cope, Portland, :-U mMk ekargMi with the attempt-, ed robbery, is being held in lieu of $10,000 bail on a charge 01 .as milt with intent to rob. Arraign' ment In Marion -County District court was continued to Monday for Cope to make his plea on the ' Vila, g..- p - Police meanwhile have question ed and released another man who they believe may have had a'part in planning the robbery, or at least had a Knowledge 01 11. ine gun used in the wounding of Mc Farland belongs to the second s pect, police said. Cope told officers he came to saiem inursoay m.a stole the gun from the other man's car., however oolice said they hid information that Cope and the sec ond man had been seen together quite a bit earlier In the weeK. Police released the second man, thev said, as there was insuffi cient evidence to directly connect him with the robbery. . Core was captured by McFor. land, his wife and a neighbor, Sam Davis, after the attempted hold-up at McFarland's Market on West Chemawa road about 9 p.m. Thursday.- McFarland was shot when he Jumped Cope. t. "It is not likely that our com mittee will come up with anything spectacular," . Wilhelm said, "but we are endeavoring to locate any inequities in the present tax laws and at the same time learn if there are any legitimate sources of tax revenue which are being overlooked." Among the studies to be made by sub-committee is a comparison of the Oregon tax rates as they effect persons in various income brackets with taxes imposed on the same groups in neighboring states. Money Not Given Man there,' will be broadcast over radio Who Threatened to Blow Bank Up r Pouiade Fined For Libeling Assembly Head PARIS (UP) Extreme right- wing leader Pierre Poujade was fined $1428 by I Paris court today for libeling outgoing National As sembly President Pierre senneuer. The court found Poujade guilty of repeating libelous statements made by an omciai 01 nis anu ! mnvpme-it during the cam paign for the recent French elec tions. ' The 500,000-franc fine was the second official blow In as many days for Foujaae, wnose exixeiini imr movement won 51 assem bly seats in its first try at the mite. . A National Assembly Committee declared, invalid the election of fdbr of the Poujadist deputies on grounds of election law violations. Eight other Poujade deputies face similar action. In the court action. SchneHer charged that Poujade libeled him during the election campaign by blaming him for the 1944 killing of a woman wno Knew too mucn akMif hi wartime activities. ' Poujade told the court he was only quoting a letter from Leon D'.pont, one of the principal lead en of his UDCA party, when he accused Scbneitsr of ordering two policemen to kill the woman. Dupont has already been found guilty of Jjbel for circulating the VtlandBank Holdup Try Unsuccessful ground is so soaked, rivers still run high, and the rain does not cease. . Any big deluge of rain could do the trick In a hurry because of the soaked ground conditions and the high levels of the streams. 10.67 Inches ef Rala January rain to date totals 10.67 inches in Salem, against a normal fall of 9.94 inches, and while the precipitation tapers off in periods there is always some to add to the vast amounts of sur face waters prevailing throughout most of the" countryside end to the muddy rivers that continue to run high. The Willamette at Sa lem measured 14.6 feet Saturday morning and has been, undergoing a slight drop through most of the week, but it would hot take too much upsurge from the south to zoom it up to near or above flood stage of 20 feet. Only once in tfanuarv has the Willamette here been below 10 feet, a reading of 9.6 on January 14. All other days the river has ranged from around 10 to 17.5 feet. River officials say the situation is so critical in southwestern Ore gon that an emergency flood warn ing system has been set up in the Umpqua Basin with volunteers ready, in case of heavy rains, to give hourly rain and stream read ings to civil defehsn headquarters in Roseburg. .Emergency warn ings, listing stages of the situation War Dead Returning wmmmm-wmw .j I J'i K -CI U!r Air Force, Army, Navy and Marine Corps pallbearers carry caskets of four unknown Korean . War dead aboard the light cruiser USS Manches ter at Yukosuka Naval Base in Japan for return to American soil. The four represent 852 uniden tified dead at a ceremony led by Gen. L. L. Lemiyzer, commander-in-chief of United Nations and Far East Commands. The Manchester with the first 50 caskets, sailed for Hawaii where they will be interred at Punchbowl Cemetery overlook ing Honolulu. The rest will follow aboard other ships in the next few weeks. (AP Photofax) onuses aiue ior His Policies Man Who Escaped from Death Row Reported in Five States PORTLAND m A man who threatened to blow up a bank in downtown Portland, failed in a holdup try here Saturday. Robert Hunyon, assistant man ager of the Metropolitan branch of thj U. 8. National Bank, said the m e-a Wdidn't - look desperate enough," and so he refused to give him the money which the man had demanded in a note. Runvon' said the man entered the bank at 11:10 a. m. and handed carrying a vial of nitroglycerin him a note. The writer said he was enough to "blow the place to pieces" and that he had only six months to live and didn't care what haortened if he was refused He demanded all tne ss, iu ana $20 bills available. Runvon said he read the note and then told the man he wasn't going to give him any money. The man then asked to nave me note back. Runyon, however, kept the note and turned to a telephone to call police.1 The man then ran out tne aoor, Runvon said. He was described as in his late 30-, with a mustache. He wore a brown raincoat and was bare, headed. There were only a few persons in the bank at the time . The same branch, located at S. W. 6th and Taylor in the Public Service Building was held up last October. Some 3,2S5 was taxen then. That robber was never caught. : Senate Favors More Flood Funds The senate Saturday afternoon passed unanimously a bill provid ing $35,000,000 for the Small Busi ness Administration to use 'in dis aster loans for rebuilding small businesses and homes damaged or destroyed by floods or other dis asters, according to word receiv ed from Senator Wayne Morse. The bill contains a three percent limitation on interest. Stations in inai area. t , (Continued on Page 7 Column 51 Director of BudgetHughes Leaving Post WASHINGTON tfl Rowland Hushes is steoniiut down as Pres ident Eisenhower's chief budget of ficer after helping pilot the govern ment within signt of its tirst Dai anced budget since 1951. To replace Hughes April 1, Ei senhower announced yesterday he would appoint Percival F. Bran dago, a former accounting execu tive who has been serving as dep uty budget director. Brundage is from Montclair, N. J. Just last Monday, Eisenhower told Congress he expected the budeet to be in balance this .Iscal year which ends June 30. He nlso submitted a oaiancea ouagei ior the coming fiscal year as well. Hughes cited "compelling person al and family reasons" for leav ing his post. He did not sa'y what these were. Before joining the administration as deputy budget director nearly three years ago, Hughes was comp-1 troller of the National City Bank of New York.- It was not immedi ately clear whether he would re turn to that job. Hughes shared the spotlight dur ing the controversy last year over the Dixon-Yates private power con tract. The Budget Bureau had been involved in early negotiations on that contract which since has been repudiated by the government. Brundage, 63; is in line to be come the third budget airecior since the Eisenhower administra tion took office three years ago. The first was Joseph M. Dodge, a Detroit banker. Brundage for merly was senior partner of Price, Waterhouse 4 Co., a New York accounting firm which has been associated with surveys of govern ment efficiency. Many Claiming to Have Seen Killer PRINCETON? Ind. (UP)-Jittery citizens "positively" identifying fu- gitie Leslie Irvin in five states sDurred a confused police and FBI search today for the escaped mad dog killer.. . The search concentrated In Illi nois and Indiana. But the slayer, condemned to the electric chair, was reported seen In Dayton, Ohio Louisville.' "Ky., and Sc. touts, Mo. Irvin escaped the Gibson County Jail here Thursday. He was await ing electrocution in June for mur der. He had been accused of slay ing six persons and was convicted for the murder of one ot tnem. The FBI entered the case Friday morning when a fugitive warrant was obtained at Evansville. Ind. The warrant charged the 31-year-old slayer had crossed the state line from Indiana to mi. i-armei, III., where he is believed to have stolen an automobile. Wllnmsei Under Protection Witnesses and officials who had helped convict Irvin were under protection of armed guards, but life here had started to return w normal after the first flurry of fear fallowing his escarje. Leonard Blaylock, special agent I- rhnrca of the FBI at Indianap olis, Ind. said the FBI and police in Indiana and the neighboring states of Illinois, Ohio, and Ken tucky were busy checking all clues. Irvin was "positively identified" in a drug store at Kendallville, Ind., nearly 200 miles from here Friday, police at Fort Wayne, ina., reported. ' At St. Louis.'' Mo., just across the Illinois border, a hotel waitress who said she knew Irvin, told po lice she saw the fugitive late Thurs day where she works. Identified As' Hitchhiker Near Springfield, Mo., a motor. 1st said also that he spotted- a hltchljiker. whom he. jdentlfiedUas Irvin Friday night Other reports said Irvin was In the Chicago area. He naa Deen identified as visiting a Watseka Plea of Guilty To Embezzlement PORTLAND (UP) Ralph Henry Van Houten, 39, yesterday pleaded guilty in Federal Court to embezzlement of $4133 from the Burns branch of the U. S. National Bank of' Portland. U. S. Deouty Attorney James Morrell said Van. Houten took the monev over a period of years when ho was assistant manager of the F rns bank. Federal Judge Gus J. Solomon ordered a pre-sentence investiga tion. .' Survey Team Seeking Air Base Studies Sites in Valley Area Sites near Salem that might be I used as an air base will be visited next Tuesday by a 15-man sur vey team, which has been in the state checking sites since Janu ary 13. The team, headed by W. H. Banks, U.S. Air Force, Washing ton, D.C., before checking sites in this area will call on city of ficials and the Salem Chamber of Commerce. Friday they were in the Albany area. Also to be visited Is the Ballston area near Sheridan, which has been propos 3d by the Sheridan Chamber of Commerce. Prosecution of Idaho Power Urged at Hearing at Baker Weather Details Mubma ytvtcraty. M: mlalmam tix!r, 44. Tout M-honr precipita tion: .1: for month: 1S.ST. normal, S.M. Briton precipitation. 3S.H-, nor mal. t2.. Rivet ntllM. Ill IMt. Btport ky U.S. PTeaUicr Boraan.) BAKER, Ore. OB The Idaho Power Co. should be prosecuted for starting to build a dam in Hells Cagyon without first getting a per mit from Oregon, a public power counsel asserted Friday. C. Girard Davidson, attorney lor a group of agencies urging a high federal dam in Hells Canyon, called the power company's ac tions "arrogant and flagrant vio lations of the laws of the state of Oregon." He urged the state to prosecute and said the possible penalties were a fine up to 11.000 and tail terms up to six months. Davidson's demands climaxed a day-long hearing of the Oregon Hydroelectric Commission on whether to Issue a construction permit for the Idaho Power Co. developments in Hells Canyon. Idaho Power last summer on a Federal Power Commission li cense to build three dams in that stretch of the Snake River. R. P. "Pat" Perry. Idaho Power Co. attorney, said his firm bad full authority to start construction once it had the H'U license. George W. Joseph, state Hydro electric Commission chairman, in dicated, however, that the firm also needs state approval. He said there were questions of concurrent jurisdiction. - This was tne latest aeveiopmeiu in a long struggle between Idaho Power and public power advo cates for the Hells Canyon stretch. Parry said he did not want to get irtto a long repeat of argu ments already made before the FPC. So he sooke only briefyl and submitted some papers and plans to the commission. There were number of other witnesses from both sides, how. who went into previous ar- Col. Banks said in Portland Saturday the site should contain about 5,000 acres and be flat and able to accommodate a 15.000 toot runway. Four or five Wil lamette Valley sites have already noon visited hv the team. The base, which would be lo cated from seven to 15 miles from a city Is the one the Penta gon announced last January 16 was being considered. It would be an Air Defense Command Base and a training base for Naval Air Reserves. Composing the 15-man survey team, which will not make the final decision on the location but is only making the survey, arc representatives of the Air Force, Corps of Engineers, Air Defense Command, Western Air Defense Force, the U.S. Navy and the Civil Aoronatillcs Authority. Both Elmer Berg, who heads the Salem Chamber of Commerce and Fltnn Thomnson. cMirman of the 111 . tavern about 85 miles from Chicago. ' ' . Indiana state police said Irvin apparently made keys out of card board and glue to escape the jail. Irvin was sentenced, last month for the slaying of an Evansville filling station attendant. He also was responsible for the killings of two Indiana women and three members of a prominent Hender son, Ky., farm family. Second Story Burglar Gets 2?0inTlieft Police wondered Saturday If they had another "second story" burglar in Salem with the report ed break-in of Pade's Market, 1244 State street. About $200 in cash and checks were taken in the burglary, most of it in cash, police said. A ten tative break-down listed it as about $55 in checks, about $50- $60 in small change and the re mainder in bills. Entry 'was made by drilling a scries of holes through the floor of a vacant apartment above the store, .removing the floor boards ind insulation and then drilling more holes through the ceiling boards to remove them. The brace and bit, were left at the icene. After dropping through onto a floor rack, the thief made his way to the office and took the money bag from the unlocked tafe. No attempt was made to enter the front nf the istore where s small amount of change In the till was undisturbed, po lice said. The burglar left the same way -he entered, officers reported. Entry into the vacant apartment was made by rear stairway, they said. - 1 ne bur glary was discovered about 7 a.m. Saturday by proprietor Ben Psdc. Olficers said the burglar ap parently worked pretty hard for his money. The bit was so dull, they said, it must have taken him President Gives No Hint on 2nd Term WASHINGTON un-Either as a candidate or as a "worker in the ranks," President Eisenhower has promised to battle with all my strength" for the policies of his administration. Despite the uncertainty with which he viewed his role, Eisen. hower's promise of support last night cheered more than 60,000 Re publicans whose "Salute toabisen. hower" dinners up to $100 a plate raised an estimated five million dollars for national, state and local GOP campaign purposes. Responding to demands that he run again. Eisenhower said "my future role remains undetermined whether to-be a candidate for your nomination or a worker in the ranks." But he promised his help in either case. The President arose smiling and outwardly hale and hearty to re turn the salute of 53 dinners throughout the country. But tears clouded bis eyes as ne acknowl edged the tribute, saying "The heart is so full that It is indeed dangerous to say more than 'thank you. Eisenhower told 1,700 diners In Washington and about 60,000 more over the country that his decision when it is reached, will not be a selfish one. "I could devoutly wish that there were some other method by which the American people could, under the circumstances, point out the path of my true duty," hi said. "But It appears that this is a question that first I alone must answer. The Republicans who cheered his entrance with Mrs. Eisenhower. gowned in purple and carrying American Beauty roses, leit Neither did 'he closed circuit tele- no doubt that they would like to help him make an affirmative decision. evision flashbacks, from Los An geles to New York' leave any thought that the Republicans salut ing his third anniversary in the White House have in mind any other candidate but Eisenower. Some of them obviously were cheered' by Eisenhower's statement that he hopes his decision when it comes, "will not unduly reflect concern for self. . ." These party member's said they Interpreted this as indicating the President will make the race if he finds he has reached what ha called at Thursday's White House ' news conference "a reasonable lev el of strength" physically. Harriman Has Sharp Word's For President LOS ANGELES lAWBucV pass er"- and "The biggest dodger" is the double-barreled salute to Pres ident Eisenhower fired -by Averell Harriman. . - Speaking like a man perhaps ready to make the - switch from "inactive" to "active" presidential candidate, the Democratic gover nor of New York also emptied nis verbal artillery at the Republican administration for what ne termed its "lukewarm, reluctant or non existent policies." "Eisenhower Is the biggest dodger of any president we've ever had in my memory," Harriman told newsmen. And he said his memory extended back to the Mc- Klnley administration. The charge came when Harri man was asked his opinion of the President's remarks concerning Gen. Matthew Ridgway's puo lished differences on 1054 military policy. Eisenhower Is creating the im- Bond Measures Coming Before City Council Council to Decide If ; Proposals to Appear ; On Ballot Five bills proposing bond issues . for $4,899,000 and two for special ' tax levies totaling $85,000 to cover needed city projects will be before the City Council Monday night for final action. . Two others for special tax levies, 1 totaling $65,375, will be on the.' HKunua mr . wirouucuon ana ursi f:- rcadlng. . . f . All of the bills.' if passed, will Lgo on the special city election bal lot in May. . y Among toning measures before the council will-be two in the southeast quarter of the city, one of which would make way for con- struction of the Erlckson super- market In that area. It would , . change from R-4 residential to C-S business district property on the - south side of Lewis Street and the north side of Oxford Street, 150 feet west of South 12th Street. . Another would make the sama zone change for property on tha south side of Oxford between 12th ' and Berry on petition of Mrs. Mel- t ba Dougherty. Both have the rec- ' ommendation of the City Planning Commission. The bills will be glv- en first reading. 1 Another bill on the calendar for . first reading will initiate proceed- , ings for the annexation of 57 acres in Polk County adjoining West Sa- ; , lcm. street Improvement resolutions , to be acted on are for the Im provement of North 24th front Windsor to Ellis Avenue: and of , prcssion he's over and above the aaminisirauon, numman wlllamollo nrlvo from Stnrlc Street adding .that the President "tesnt to Dc,mar Dr,ve take responsibility for his nro- grams. By contrast, Harriman said, for mer President Truman "always took responsibility for his programs." He accused Elsenhower of "pass ing the buck" when he referred reporters to the Pentagon concern ing a statement In the 1954 State of the Union message. The Presi dent had claimed the Joint Chiefs of Staff had agreed on an Army manpower cut; Gen. Ridgway says he opposed It. While Harriman demurred at be ing called either "active" or "In active" at this stage, newsmen most twice as much power nnd would add flood control and other benefits not available under Idaho Power's plans. - There also were other witnesses. Petitions for street Improvement rnrnlnn In are-.. i Riviera Drive from North River Road to Island View Drive, with 88.5 per cent of the assessable : property covered by the signa ! . hires: Island View Drive from Riv- , iera Drive to south terminus, 86.1 : per cent; Dreamerle Lane from i Riviera Drive to Island View ; Drive,' 100 per cent; and Shipping Street from Broadway to Fifth, i All have the recommendation of 1 the city engineer without side- ; walks, and if approved the proj- , ects will go on the city program. General Services Administration ; is asking the city (or permission to widen two driveways into tha here were Inclined to tab him a . t. tin,. IA nt mx-olo liohfninff rnH rflnrilHafo for Ihe work to grind his way through Democratic presidential nomina- j post office grounds and to build the wood. lon. .. . I a new one on v-ouage aircxt. Abandoning Formosa Demand of Red China Industrial council nf Ihe S,alem WASHINGTON The United It therefore appeared that the .propaganda exchanges between the ; Ucncva tniKs wnicn ncgan Aug. l unucu aiaics ami nra viinm nui , and produced an agreement on ox-' a reaction in world opinion wni':n Chamber of Commerce, said their .,, Red China Salur- representatives would be dad to I d of dcmanding American abaml mect with Col. JJanks . team and. , w,rm05a tne ,hce Thompson said he wa i pleased to! f Wnj , rca renunciation Charles Campbell of the Oregon '.j t.J r.iZ' 7" 1 ... liof the. use of force, . . . f . bnu nurcu uicy iuuiiu a uiuimc Game Commission and John Hodges of the Oregon ,Fish Com-1 mission protested against granting of a permit -until further study is made to determine the effect on wildlife. County Judge Lloyd Rea of Baker County said there were still other problems to be settled. He men tioned' grazing rights, taxes and roads to be replaced when the res ervoir behind the dams flood :andt. The commission adjourned the hearing late in the day without giving indication whn it would ar guments, inounce us course oi action. Mnho Power Co. suooorters id ! Davidson, in presenting his do the darns manned by the lirm big petition for action against 'da- would provide tax money, oeveiop ino rower, saia ne rcpreseoica ine almost as much power and would state Grange, the state AFL ind location some place in this area. Today's Index Section One Amusement Society .. Local Editorial ......... 7 ...I "lion Two Sports ..... Chorea Comic 4 Television Classified $-7 $ cos. far less than the high federal CIO, Oregon Farmers Union. 0re-'o W.. Tlirw J . m UFA romvr alive Assn. ind T t. IIOH J IITI Public power advaocates said the i the Hells Canyon Development romlr high federal dam would create al Asn. I 1, I change of civilians Sept. 10 aro now persuades the Reds to moke ub- ,' tightly deadlocked on the question stantial concessions In their .rasi- Striking back at Red. Chinese charges of American stalling in talks at Geneva, the Stole Depart ment .issued a summary of four months of those discussions and said: Summary Given The Communists so fir seem willing to renounce force only if they are first conceded ine goais for which they wfuld die force." The State Department officios said Red China's goals were to get the United States to withdraw its small defense force from the Formosa area, abandon its base rights there and cancel the mu tual defense treaty with National ist China. These' officials .tald the United States would never do these things and asserted the American post lion In defense of Formosa is not I negotiable with the Reds. of renouncing the use of force The State Department charged again Saturday that the Commun ists have failed to live up to .he agreement to release imprisoned Americans. Deadlock Stymies Negotiation on further questions. especially the Communist desire to end the American trade embargo and to set up a meeting between Secretary of State Dulles and Foreign Minister Chou bn-Lai, seems completely stymied by the deadlock. Thirteen Americans -'.ill re held In Communist prisons despite the Sept. 10 agreement. State Ucpait ment informants contended hat the Reds are using them as pawns in the bnrgining. to be ransomed by American concessions. How long tha deadlock holds. In the American view, probably will depend on whether the present tion. The State Dcoarlmcnt. which ! has accused Communist China of "distorting U.S. alms in the Ge- t neva talks, set forth its position In , a strongly worded statement giving i its side of the story. ' The PeiD Ino regime earlier '.his , week contended it had made reas- ' onable offers but that the United ; States was holding up progress. , In its declaration Saturday, tha 1 State Department released 1 se-' ries of American proposals and counter proposals running from ' early October into this month on the Issue of promising not to re-; sort to Ihe use of arms. The record shows, the United ' States said, that what the United Stater wants is an agreement , which would specifically apply to i Formosa and commit the Reds not to make military assault to tat is(y Heir claims a that island.'