Salem, Oregon, Monday, January 7, 1957 TUP fACTTAT TATTT5XT A T race oeuuuii x " " " w. .-I, . . . Capital jkjJournal An Independent Newspaper Established 1888 - BERNARD MAINWARING, Editor and Publisher GEORGE PUTNAM, Editor Emeritus Published every afternoon except Sunday at 280 North Church St. Phone EM-46811 rull Leased Wire Service of The Associated Presl and The United Press. The Associated Prea la exclusively entitled to the use for pub lication of all news dispatches credited to It or otherwise credited in this paper and also news published therein. SUBSCRIPTION RATES By carrier: Monthly, $1.25: Sir Months, S7..M; one Vi-ar, $15.00. By mall In Oregon: Monthly, $1.00: Six Months. $5.00; one Year, $9.00. By mail Outside oreion: Monthly. J1.25; Six Months, $7.50; One Vear, 119.00. Governor Smith Offers a Budget ,T You'd suppose the budget would be submitted to the in- ., coming legislature by the incoming governor when there is ';,- one, but in Oregon the outgoing governor does this, even when ' he has been defeated for re-election. So Governor Smith, on the advice of his financial aides, has j produced a budget for the biennium that will commence July 1, 1957, for the consideration of a legislature a majority of "'n- whose members will not be disposed to view with favor. The governor has budgeted the available funds, taking into "" account the surplus of upwards of $30,000,000 his administra tion will leave, and the revenue the present tax structure should produce in the coming two year period. It comes to r $259,800,000, some 30 million less than the various depart ments requested, but 38 million more than will be spent, this biennium. Biggest increase proposed is for higher education, whose J?.; board asked for a 14 million dollar boost. This was whittled only $2,753,000, a recognition that a large increase must be made here. He also approved $10,000,000 for new buildings , J' on the state college campuses, up $6,000,000 from the current f ) biennium. He approved five and a quarter millions for sal- 'ary increases of state personnel and $10,000,000 for other state ''"' buildings. More than 30 million was allocated to welfare ac ;'v tivity. i Large as this budget is and large as the proposed increase .f is, the biggest single call for an increase is ignored. This is the demand of the education forces that the state increase its contribution to the public schools from $80 a year per pupil to $120. The governor says he favors this, but that it can not be done within the present revenue structure. The cost will be more than $40,000,000 for the two years if it is done, $20,000,000 plus, if half the increased asked for, is granted. So great is the need and so strong the demand that .the legis- lature can hardly avoid meeting it half way. It may go all the J way. -; If either is done, new tax revenues must be found. Where? " Unless some new source, as yet undiscovered, can be turned -"' up, most of the money must come from the personal andor corporation income tax. But aren't we going to be relieved ; of the surtax that accounted, more than any other two factors, 'for the Republican defeat? Everybody is against it or was before the election. "n But the election is past now and realities must be faced. The realities arc that only by retaining the extra revenue this unpopular levy provided above expenditures in the 1955-57 bi t, ennium and continuing them, can the budget recommended by fl: Governor Smith be financed. If the school allocation be in v creased, these must he Increased. What of the surtax? The name will almost certainly bo removed and the rates reiuggled. But the revenue cannot be reduced, probably will be increased," for the outgoing governor's closely pruned budget will almost "y certainly bo increased by the new legislature. The Democrats won't accept the Smith budget. They'll go j " over it with a fine tooth comb, and change virtually all the figures. But he has given them a good target to shoot at, and ... a standard by which the public will Judge their acts. . Commies Have Tried, Failed To Infiltrate American FBI I . States After Federal Land Areas Efforts are underway in Congress by Western States to re new the fight for return to the slates of part of their areas now in possession of the United Stales as it is alleged the reason that some of the states are so poor in tax resources. Estimates i';of slate and local lax losses from Federal land ownership range from one to several hundred million dollars annually despite the fact that Uncle Sam usually shares receipts from Federal lands with local tax jurisdictions. The 1954 report of the House Committee on Interior and .Insular affairs reported: "... As of today, (he states and Federal Government have pre-empted most revenue sources other than derived from the property .tax: loeal Government contends (hat the presence of tax-exempt Fed eral property has so reduced the economic capacity of some local tax ing units that llieir financial independence is in fact threatened." The Hoover Commissions Task Force on Heal Property Man agement on lands purchased and held by the Government said some of these areas have now become valuable for timber or for agricultural use and should he reviewed by disinterested experts to determine the advisability of their return to state or private ownership. It is recommended that the President appoint such a com- mitlee to study and recomend a pattern which would provide maximum benefits to t lie national economy for transferring (lands to state or private ownership. A similar proposal was niade by the Kostnliaum Commission in l!h5. i A bill to this effect was introduced in the last session by Senator Long of Louisiana that would at the request of any stale establish a Federal-State Land Study Commission. Long claimed that it would in a few years greatly aid the solution of 1 tic problem. Such a Commission should fairly represent both Federal and State interests and recommend those Federal lands which should be in state or private ownership. Land in National Parks and Monuments, and property needed for national do fense arc exempted. The percentage of land held by tlie government tn western states Is listed as follows: Nevada B7. 1 percent. Ulah 70.2 percent. Idaho R5.2 percent. Oregon 51.3 percent. Wyoming 47 8 percent, California 17 per cent. Arizona 44 5 percent. Colorado at; a percent. New Mexico 33.7 percent, Washington 211. !l percent, Montana 20 ft percent. . In the 4S states Uncle Sain owns 4o7.lt00.0O0 acres of land, or 21.4 percent nf all the land. (If this 3.'i7,ooo.00fl acres were reserved from top puiinc domain ami rii.oiHi.oott acres acquired by purchase, tn addi tion there are 55.000,000 acres in Indian reservations held in trust .Civilian ngonrios administer 339, IIS. 000 acres owned by the Govern' :monl in Alaska. I'ncle Sam pays no taxes on anything ho owns, cities or ,Jand, buildings, ships or power plants, or anything else but ;taxes pay for it all. and the more he spends the higher the taxes, lie has not other supporting revenue. G. P. 'i- . A i mee's Disappearance Keealled The mysterious abduction of Actress Marie McDonald sent (he minds nf many scurrying back to the disappearance of Evangelist Aimee Kemplc McPherson from the beach at Santa Monica more than 30 years ago. Later she came out of the Arizona desert. Her followers thought it a miracle, others a "frame" or a "fix," with a personable man in the villain -ole. The story made the front pages of the papers day after dav for months. Our international troubles were fewer t hen. It established Aimee as a celebrity, which she remained for Hie rest of her days through another marriage and divorce and a feud with her mother, the redoubtable "Ma" Kennedy who was as good a headline catcher as her daughter. Recollection of this event made many of the older folk sus picious, though perhaps wrongly so, for Los Angeles Is a place where things are sometimes not what they seem. Altitude Record in Danger f SECTION' I hidf 1 take it I (MijMm 0 into the I $&s0z m 1 1 W&T a JML. POOR MAN'S PHILOSOPHER By HAL BOYLE NEW YORK tft The Federal Bureau of Investigation has had notable success in planting its agents in the Communist network for investigative purposes. The question naturally arises, Why don't the Commies try to plant a few if their key men in side the FBI?" The answer is, they have tried again and again and failed. 'The Communists are known to have made numerous efforts to penetrate the FBI, but there is no evidence mat mey ever suc ceeded," says Don Whitehead in g"th FBI Story, a biography of the mysterioui government agen cy that has become a smash best seller in the nation's bookstalls. More than a year ago White head, top war correspondent. twice winner of the Pulitzer Prize, and now chief of the Washington bureau of the New York Herald Tribune, set out to find the answer to two problems that puzzled him: How had J. Edgar Hoover man aged to survive for 30 years as director of the FBI in a city as full of political intrigue as the nation's capital? Was there any truth to Insinua tions that the FBI represented a shadowy menace to civil rights? Like the trained reporter he is, Whitehead went to the fountain- head source, and asked and re ceived permission to inspect FBI files, except those dealing with national security. The result is his hook, subtitled "A Report To The People, which strips away some of the mystery and perhaps a bit of the glamor that has surrounded the FBI, but at the same time docu ments fully its magnificent record of public service It is a report low! overdue one that should do much to clear away any mistaken mistrust of the FBI a mistrust for which In at least some small measure the FBI's own secrecy Is to blame). the nil emerges not so much an organization of super sleuths as It does a closely-knit group of intelligent, hard-working men who share a fantastic loyalty, a dedi cated purpose, and a discipline tnnt any army could he proud of noover 1.1 tne mi," says Whitehead. He makes it clear the reason Hoover has held his top role so long (he has served under five Presidents 1 is precisely be cause he took the FBI out of par tisan politics and fought to keep it out. The FBI's success in catching all kinds of criminals rancine from landgrnhhers tn hankrobhers from kidnapers to Communist spies Is backgrounded with enough sensational eases to make a dozen movies. Whitehead also cites manv little known facts about the FBI, such as' Its agents are taught to fire a gun with eillier hand, and one of their slogans is "Never shoot while runtime," That FBI men even before the ocond World War trained U.S. Marines in hand-to-hand fishtinc That only one FBI agent (and that was back in the lush ri.ivt show the steadily increasing role played by the FBI in protecting civil liberties, concludes it could degenerate into a Gestapo-like organization only if It became a political tool under a dictator gov ernment in which the normal checks and balances were destroyed. Pointing out that the FBI is "only 1 of 18 federal agencies having investigative staffs with specific responsibilities for en forcement of federal laws and na tional security," he concludes: "But it is inconceivable that all mesa restraints could be cor rupted or eliminated." A Smile or Two Reader's Digest As another teacher and I walked along the school corridor, two small boys approached us, one talking explosively to the other. We were about to pass them when we heard the one shout, "Some times me gran'mudder makes me so mad I feel like cuttin' her Croat!" My friend stopped and eyed the boy as only a school teacher can. The word, she said, is throat, not Croat!" NATIONAL WHIRLIGIG Ike Mid-East Plans Opposed From. Capitol Hill to Cairo By RAY TUCKER They Say Today Quotes From The News By UNITED PRESS HOLLYWOOD: Actress Marie McDonald denying her kidnap or deal was a "hoax:" I've taken my usual buffeting from the press. They don't believe me. they don't know what I went through. I'm so thankful to be alive ana back wun my cnuaren. WASHINGTON: Sen. Mike Mansfield (D Mont) on President Eisenhower's program for block ing further Red penetration of the Mideast: Thcv (Communists) are in there big and they are in their to stay. BUDAPEST: Premier .lanos Ka dar's regime declaring those who oppose the government can expect extreme penalties: "Counter - revolutionaries, im perialist agents, all those against the legal order of the Hungarian peoples republic have no right to liberty. . . NEW YORK: Jackie Robinson on his announcement that he is quitting baseball to enter private business: "If I ad not received the good deal that 1 have with my new company, I would be playing for the (New York) Giants this year." LAXMIBAINAGAR, India: Pre mier Jawaharlal Nehru believing there will be trouble if the U.S. attempts to provide military aid to the Middle Hast under the Ei senhower doctrine: "When a foreign power tries to step into another country, it dis- WASHINGTON, Jan. 7 The Eisenhower program to defend the Middle East against Russian mili tarism faces heavy opposition from Capitol Hill to Cairo because of the general belief that any war in that or other areas will be fought with atomic rather than conven tional weapons. It is this factor which makes the White House plan, as unfolded to members of Congress by Ei senhower and Secretary Dulles, entirely different from the prece dents ;cd by its distinguished proponents. In explaining it to congressional conferees, its sole author, Secre tary Dulles, described it as a mere geographical extension of the Mon roe doctrine, which covered t h e Western Hemisphere, and the Tru man doctrine, which shielded Greece and Turkey against pos sible Communist invasion or eco nomic infiltration. In order to impress the critical Democrats, there was a reminder that, in 1941, F.D.R. declared that " merica's first line of defense is now the Rhine and Elbe rivers." Vital Differences But questioning men from Capitol Hill discern vital differen ces. When President Monroe barred the Western Hemisphere from European colonization (prin cipally Russian, French, and Span ish), there was no such awful thing as an or If bomb. And when Roosevelt and Truman ex tended our coverage to Western Europe, Greece and Turkey, Rus sia had not perfected or exploded the ultimate in military warfare and destruction. The Congressmen urged to sup port the Middle East program are deeply concerned over more ex tensive commitments because 0 f this development. And, indeed, so are the diplomatic representatives of the nations which President Ei senhower proposes to protect. They do not want to become an atomic battlefield, if it would mean their demolishment as going concerns. However, military experts agree that there is no other way to stop or to fight an enemy so superior in man power as Russia, and so much nearer to the :ossible scene of conflict. In fact, and for that reason, several presidential ad visers have been trying to condi tion the public and the congression al mind to this realization and development. They include such recognized and responsible spokesmen a s C:ncral Alfred M. Grucnther, Ike's close friend and former command er of SHAPE; General Lauris Nor- stad, exponent of aerial warfare and Gruenthers successor; and Donald Quarlcs, secretary of the Air Force. They have revealed our determination to employ atomic weapons in a showdown clash, as would be a struggle for the vital oil of th- Middle East. They would not have done so, naturally, if there were not every expectation that the desperate rul ers in the Kremlin, shaky over the crumbling of their satellite empire and buffer frontier, would resort to an atomic attack in the Middle East and elsewhere. Twofold Warning To Russia Thus, Washington will give a twofold warning to Russia, assum ing that congress agrees to the Eisenhower-Dulles proposal. We have notified or we will that the United States will never again exercise the same restraint which led to a tragic stalemate, if not an actual defeat, in Korea. We will indicate that we will fight with every weapon in our posses sion, and that means all the arsen al of atomic power. We have al ready placed Moscow on notice that our overseas ' forces are equipped with A and H bombs and artillery ammunition. Together with past and pros pective guarantees to provide a nuclear defense to 50 nations around the perimeter of the Rus sian empire, Washington believes that Khrushchev and Bulganin will not dare to provoke a World War HI of atomic proportions and horror. HE'S GETTING OLD Sherman County Journal Wo arp amonff those who com plain that the bakers have ruined bread and will also agree that the packers are ruining the ham. HE DREW THE LINE HERE Socrates If I had engaged in poUtics, O men of Athens, I should have per ished long ago, and done no good either to you or myself. 67 67 67 67 67 67 67 j 67 67 67 67 John Q. Public Looks Forward To New Year with Optimism By GEORGE GALLUP American Institute of Public Opftiiopl WHAT'S BISHOP'S GOING TO DO FOR THE 67 67 67 67 67 67 67 67 67 67 67 Hear With Your Glasses HOW TO DO IT Napoleon The best way to make every one poor is to insist on equality of turbs the peace of that country weaun. tana creates conmcis. Eisenhower Mid-East Move Called 'Dramatic But Vague' By JAMES MARl.OW Associated Press News Analyst used only for defense or to pre vent rebellion? He didn't say. He asked Congress for approval beforehand to use American WASHINGTON (A The Eisen hower administration, faced with the necessity of taking some kind of leadership in the Middle East where the British and French have been discredited, has acted dramatically but vaguely. The President went before Con gress Saturday with what has been called a program but which is really an outline for a program. And, for the most part, it was not new. Its vagueness raised questions which may keep the Russians guessing. The questions will also keep Congress and the public guessing until Kisenhower's aides answer some of them. Nevertheless, since action needed at this time, and since some action seems better than drifting. Congress will probably approve some ot what Kisenhow cr asked. Time and events will show whether his judgment was good or bad. This country has given the Middle Kast economic aid. risen hower asked Congress to increase it. But how it will be used he didn't say. At this time he prob ably doesn't know since it isn't clear what Middle Eastern nation wants it or would accept it. He told Congress he wants to give Middle Eastern countries military assistance arms and this idea is not new although Sec- armed forces in the Middle East to help any nation which asked for it to stop "overt aggression by a nation controlled by interna tional communism. Did he really need this standby authority because of some emer gency of which the general public doesn't know? Or did he ask it simply as a psychological jolt to the Russians and Middle East Communists? Almost certainly the latter. There is no indication, unless the administration has informaa tion withheld from the public, that Itussia intends an attack any where. Then what "overt" aggres sion was Kisenhowcr talking about? He didn't say. But except for the economic help intended to stahilizo Middle Eastern nations, and arms to quell rebellion, he offered no plan at all for what si-cms a far more immediate danger in the area: Take-over by the Communists from within a country. It is when he spoke of the United Nations that the President was truly vague: He said any action he took on using armed forces would be "subject to the overriding authority of the United PIMNCETON', N. J., Jal. t The experts have nil made their pre dictions for 11157. Now here's what the nnn-experls the typical citi zens of the nation have to say about the next twelve months: John O. Public is looking at l!b7 with a good deal of optimism about the chances for peace ana the prosperity of this country in general. His optimism is tempered, how ever, by the fact that he believes that taxes will be higher in 1957 and the prices of most of the things he buys are going up. In a'snecial "New Year's sur vey by the Institute, here's what John Q. and his wife have to say about the world they will live in during 1957: 1. They believe there win De no major war in 1957. Two out of three adults guess that no global conflict will break out during the coming year. Only one in eight thinks there will be major war. 2. They think business In gen eral will be better. The weight of sentiment among all adults in the survey is that there will be a higher level of prosperity during the coming year. Almost as many, however, think business will be about the sani and one person in eight thinks it will be worse. 3. But they also believe taxes will be higher during the next 12 months. Nearly six out of 10 persons fore cast that the "tax bite" will be bigger in 1957. Only three persons n 100 believe taxes win De lower. Roughly one in three thinks they will stay the same. 4. They feel the prices of things they buy wilt go up. gom cynic long ago advised politicians to "never give the reason for anything you do or say; you'll always be able to think of a better one afterward." Whether the Kremlin's tinnwta Vto-Qsla-bdV ever road this', the record does not dis- W5V,' ?'"""' " .""7 .W" V" ""..I ever he in Ih. forefront nf crime ftason for tlio Hiis:tn nruiaiiucs in Hungary, ii was u !'-' control vent World War III, the Russian top kick sagely observed.) (.., K, urn Mo ..anothor without even a wink. Hotter think some more, :r;isny. nine- Gestapo' of prohibition! ever had to be fired i about tor taking a bribe. That, although most of its agents could earn twice as much nmnevi oulsule the service, the FBI in l.)5o had a monthly turnover of less than one-half of one per cent, compared with 33 er cent for private industry. Will the FBI ever tart Into a national police' In a foreword. Hoover hilmself disc1ns any such goal for th FBI, and adds: "There Is never any doubt with in tne nil that the home-town law enforcement rotarv nf Slate Unites has been i Nations' Security Council." hemming and hawing for months: What does that mean? Hardly giving that area arms. ; that he'd ask the council before- Ile held off thing Kcvotian "and for permission to use Amer- Presidcnt Nasser arms until Nns-l ican forces against Communist as- Salem 55 Yrs. Ago By BEN MAXWELL Jan. 7, 1902 On this winter day in Salem 55 years ago big fir cordwood had a price of S3.50, second growin, n; ash, $.1.50; body oak, $4 and pole oak, $4. Mayor C. P. Bishop in his an nual message had told the city council that jalem's revenues for 1901 had been $27,700.42. expenses $24,377.61. For a third year Salem had kept within Jier revenues. City council was considering the proposal of illuminating the arm' ory In city ball with gas light. Capital Journal's X-Rayist had written: A Salem family had a flag flying and were rejoicing wildly because their son in col lege had come through the foot ball season and had his liver and lights still inside his anatomy." (Lights is an old fashioned word for the lungs of animals'. A Capital Journal editorial had Nearly seven out nf 10 Ameri cans believe thai prices will go up during the forthcoming year. Only one in 20 looks for lower prices, while about one in five , thinks prices will stay the same. 5. John Q. and his family say they will be about the same finan cially In 1957 as they were In 195S. Nearly half of all adults in the survey believe there will be no appreciable difference in their fi nancial status during the next 12 months. Better than one in three, however, are looking hopefully for tilings to get better in the "pocket book" line, while about one in eight expects things to get worse. In getting the public's guesses on the state of the world and their pockctbook in 1957, Institute inter viewers put the following questions to a carefully drawn cross-section of U.S. adults: "Many newspaper writers arc making their predictions of what will happen during the coming year, what do you think will happen in 1957 about. . . . "War will there be a major war in 1957?" Yes, will be 13 No, will not 67 Don't know 20 "Prosperity will business in general be better or worse?" Better 43 Worse .. 12 About the same 38 Don't know 7 "Taxes will they be higher or lower in 1957?" Higher 59 Lower . 3 About the same 32 Don't know 6 "Prices of things you buy will they be higher or lower in 1957" Higher 68 Lower 5 About the same 21 Don't know 6 lou and your family do you think you will be better off. or worse off. financially in 1957?" BETTER OFF 3fi Worse off 12 About the same 47 Don't know 5 ; r r v 1 , Com an I So easy and ianghr.fi cords I comfortable lo wear A I 1 I I I I I I I 1 ii ir Maico's new dLtNUCK LIRE HEARING GLASSES WITH ABSOtUTEtY End deafness handicap confidentially with nothing in either ear. Hear clearly, comfort- ably with powerful 4 transistor aid as part of slender bows. Ideal for conductive-type deafness. Use your present glasses or select a modern frame of your choice. NO BULKY BOWS I NO TUBE TO EAR I Come in for tree trial and deTmonilralion, or phone EM-20702 The New Street Floor Location of SALEM HEARING SERVICE 381 STATE SI (By Bus Stop ot Liberty & State) YOUR SAVINGS ACCOUNT IS WELCOME WHERE ONE THOUSAND HAVE SAVED Humane and Practical St. Louis Glohe-Drmocrat Israel has offered to exchange all of its 5580 Egyptian prisoners 1 for the four Israelis known to he ' held by Egyptians. An uncondi-1 tional trade for Israel would be economically wise and an evidence ' of fair dealing. It Tel Aviv can reap good propaganda from such a move, it is justified. It has been carefully adhering to Geneva con ventions for good treatment of . prisoners, and has done a humane 1 tiling to release them immediately after the shooting stops. i If only all nations cf the bristling world would follow such practices. 1 the bitter tensions would be re-1 lieved. international morale might filter back into ruthless ranitaU said that Portland was making too j and the globe take on a better much ado about its great grain : semblance of civilized society. Of MILLION NEW SAVINGS RATES EFFECTIVE JAN. 1, 1957 2V2 c ... i Accounts On Three-Year Certificates 3 of Deposit Ask About Our Deposit Box Offer to New Accounts Open, Increase or Transfer Your Account Before Jan. 11th to Earn Interest From Jan. 1st. A Convenient Place to Transact All of Your Bank ing Business Downtown But Away From Conges j Tion. scr cot them from Russia. He wouldn't sell arms to Israel bii; left the door open for American allies to supply the Israelis, whfch they did. He let tanks go to Saudi Arabia. fleet that carries millions of bush els from that harbor each year. gression when Russia sits on the I The editorial pointed out that council and could veto such a re quest. What he probably means is that the United States would act first and talk to the Security Council Last Feb. 4 Dulles said this second. But this gives the Soviets country "does not exclude the pos- the privilege of announcing the crimping, the business of supply ing the ship's crews, had become a national scandal and that the port of Portland was a terror to course, such policy would be blow to Siberian slave camps. IN SUSPENSE Seattle Times Christian Dior is unable to make snip masters an over me world. ,, hj. mind , whi.h d,rK.n (tvils of crimping are considered ; th. hemline is going. Meanwhile i in a report of the "Committee on i . i( .1 . . i ., -I - . ,h;n nK., .Knt IW ivnolrl C,,,,,' lh,i,n." Ki- ' . .. . .7 . . . -'"""---ft, sHumjr m niia ua iu .3. m- , .... ,r -.. .. - ' j mere, meir mouths lull ot pins, and the Arab states "when it will i call capitalist aggression in some the Portland Chamber of Com- . preserve peace. Arms for pro-! area. ! merce in IsKfli. Western countries In the area.! Where does this lea the j must: like Turkey and Iraq, may pre- United Nations The council Is I Greater Salem Commercial Club serve peace. supposed to decide what and naa received a proposition to lo- But what assurance will the El- what tsn t aggression. It tne caie a ra.vmm arwe or noiow y you can come up with a better one than this. THE PHRASE FITS Seattle Times A Spanish poet won the Nobel Prize odes, described as "pas- senhower administration want United Slates acted first and con- the town and to obtain a pledge toral and melancholy. That also from other Middle Kastern nations suited the council later it would from the city in hehaif of .the describes most speeches on t h e OF SALEM CHUCM Wi OMEKfTA STtfO! Wluichoad cites the record to, that any arms they sot will be be deciding what aggression was. Lewis and Clarke Exposition, problem.