11 THE WEATHER MOSTLY CLOUDY tonight, partial clearing Thursday, with sunny periods; few scattered show ers or brief snow flurries. Low to night, 28; high Thursday, 36. 2 SECTIONS 20 Page 69th Year, No. 20 Salem, Oregon," Wednesday, January 23, 19577'.," uo2s-, 3 "sjrMun Demos Switch Support to Sen. Lewis for Prexy (( .ct.m.iiircft I iffl , 01111 H Governor Seeks to Break Tie Republicans Shun Compromise Offer - By PAUL W. HARVEY JR. Associated Press Writer Senate Democrats, prodded by ,Gov. Robert D. Holmes, switched 'their support Wednesday to Sen. Jean Lewis (D), Portland, for pres ' ident of the Senate. But the Republicans refused to . accept her. I X- As the Senate went into Its ninth day of deadlock, the Demo cratic shift followed a Democratic caucus at which Gov. Holmes pro posed that the Democrats, who had solidly supportedjien. Walter J. Pearson (D, Portland, snitt '' their support to Mrs. Lewis, a Portland attorney who managed the successful reelection cam paign of Sen. Wayne Morse. Pearson Not Out Pearson said, "This does not necessarily mean that I am with drawing. All it means is that we are making a compromise offer to the Republicans. On the first ballot of the day, Mrs. Lewis got the 15 Democrat? votes, and the Democrats kept on voting that way. The Republicans continued ta alternate among the three Democrats of their choice Sens. Phil Brady and Ward Cook. both of Portland, and Harry Boi- vm. Aiamatn rails. Sen. Philip S. Lowry (R), Med- ford, told a reporter that the Re publicans had informally discuss- : cd the possible candidacy of Mrs. Lewis, "and we again decided that Boivin, Cook and Brady arc the only Democrats who would be acceptable to us from the stand point of experience." Presided at Inaugural Mrs. Lewis is a newcomer in the Senate, although she served ' in the House in 1955. She presided at the inauguration ceremony for Oov. Holmes. Another leading Republican, who wouldn't allow use of his name, said "The Republicans never would vote for Mrs. Lewis because that would build up her political career." The Democrats, as is their pol icy, maintained silence about what went on in their morning caucus. But a spokesman for the gov ernor said the proposal to support Mrs. Lewis was .the governor's , idea. Before the voting started, Sen. Warren Gill IR), Lebanon, who (Continued on Page 5, Column 2) Court Upholds Anti-Picketing Suit Dismissal Dismissal of a suit regarding picketing brought by Loder Broth ers, Salem automobile dealers, aeainst the Machinists union by Circuit Judge Val D. Sloper was upheld Wednesday by the state su preme court. The Salem automobile company had sought to restrain the union pickets from recording automobile license numbers of customers' cars entering the establishment and then sending letters concern in 2 the union's reason for the strike. Loder Brothers contended that these acts gave rise to a species of intimidation and should be a Hopped. The high court said if the taking . cf the license numbers could be considered an implied threat, such implication was completely nulli fied by the use to which the in formation was put. "The letters sent to the custo mers were devoid of any sugges tion of threat or intimidation. Justice Harold Warner, who wrote the opinion, said. "They contained "Ho offensive language and were merely informatory of the issues involved in the strike." Justice Warner added that the law grants immunity from injunc tion to communications of this character. DO YOU KISOW That a natarallzed'Aniert can played the role of a German agent to help the FBI capture the largest spy ling nnroTered before Pearl Harbor? Read (TJD The Story Sec. 2 -Page 7 OWNERS' STATEMENT The recent untimely death of Mr. Bernard Mainwaring, vice president and treasurer of The Statesman-Journal company, and editor and publisher of the Capital Journal, makes necessary a reorganization for the continued opera tion of the company and the newspaper. The stock of The Statesman-Journal company which is the owner of the Statesman-Journal Newspapers, is equally divided In ownership between the former separate .corpora tions, The Capital Journal company and the Statesman Pub lishing company. Mr. Mainwaring was the owner of the for mer company and that ownership with its holding of 50 per cent of stock in The Statesman-Journal company will be retained by the Mainwaring family, intact. As soon as the necessary legal formalities can be com pleted Mr. E. A. Brown will become vice president and Mrs. Jennie Mainwaring treasurer of The Statesman-Journal com pany to represent the Mainwaring interests. Mr. Brown has been appointed publisher of the Capital Journal, and Mr. Glenn Cushman managing editor. Mr. George Putnam will continue as editor emeritus. All other employes on the Capital Journal staff will retain their pres ent positions, THE STATESMAN-JOURNAL COMPANY, Charles A. Sprague, President Mrs. Jennie Mainwaring, Director School Bills Package Submitted to House 120 Per Student Aid From State Included By JAMES D. OLSON Capital Journal Writer Increase in the basic school formula from $80 per census school student to $120 is provided in a package of bills introduced in the Oregon house Wednesday by the house committee on educa tion. A number of bills in the package relate to a comprehensive plan of reorganization of school districts, recommended to the 1957 legisla ture by the interim committee on PendJetonGets 17-Inch Snow; Highways Icy By THE ASSOCIATED PRESS Snow piled up deeply in north ern Oregon Wednesday and many highways near the Columbia Riv er were sheets of ice. Pendleton was buried under a fall of 17 inches 10 of which fell after 5:30 p. m. Tuesday. State police reported all avail able plows were working along the Columbia Gorge and the road was open to traffic despite the heavy snowfall from Cascade Locks eastward. Pendleton city traffic was in a snarl but Highway 30 was open and Pendlelon city schools were operating. The total snow depth of 17 inches was the most there since 22 inches in 1930. The freeway between Portland and Salem was hazardous. State police said many cars slid off the slippery highway and collisions were numerous. South of Salem snow and ice was "breaking up and thawing" on Highway 99. Hermiston and Athena got a 13 inch snow blanket and wheat farmers were happy to get the moisture. There was no wind at Pendle ton, though, and the snow, still coming down heavily in late morning, was piling up evenly. Only an inch of snow fell in Portland, but in combination with snow and ice remaining from late last week it was enough to glaze streets throughout the city. Weather Details Maximum ynterdar, 43; minimum today, 31. Total 24-hour precipita tion: .03: fnr month: 2.39: normal, 4.2. Srann prrripltatlnn. 13.71; nor mal. 22. S3. Rlvrr helrhl. l.T Irrt. (Krport by U. S. ttathr Ilurraii.) GRACE'S DAL OUTER A BEAUTY Princess Born in Monaco By GEORGE MC ARTHUR (father on the throne of the 367-1 the booming cannon hots and asked. Told there was no fmmed MOXTE CARLO tfl Grace acre Riviera principality unless piercing yacht sirens, including iate news on that, he said: "Well, Kelly, princess of Monaco, gave; a son is born later to the royal j blasts from the big yachts of I guess I'll be hearing from Mar birth at 9:27 am. Wednesday! couple. The 33-year-old prince . shipping magnate Aristotle Onas- garet soon." U2:27 a.m. PSTt to a dark -haired, i himself reportedly wanted a girl. 'sis and British motor magnate Sir i Mrs. Margaret Kelly. Grace's blue-eyed daughter weighing 8 pounds 2 ounces. "The delivery went verv ouick - ly and in a normal way," said a medical bulletin signed by three attending physicians. Her highness the princess and the child are doing very well The bulletin added that the baby was "perfectly constituted." A booming 21-gun salute an nounced the arrival of Princess Caroline Louis- Marguerite, first child of reicninff Prince Rainier Tit anH fh .ta.rj,M UaIIwuI movie star he tarried last April; 19 - Princess Caroline as she will be called will succeed her 1 education authorized by the last legislature. The reorganization plan Is laid down in a number of steps, the first being the calling of a con vention of school boards of all classes in a county. This convention would elect members of a committee of nine, which likely would be composed of school board members but could, under the bill, be citizens at large. This committee would hold hear ings throughout the county and promote an overall plan for a county-wide administrative unit to lay down policies for the conduct of grades from 1 to 12. This com mittee would also have authority to work out adjustment of bonded indebtedness between districts that would be included in new zones, Hep. Joe Rogers, chairman of the committee, said. When reorganization plans are completed, the bill provides for submission of them to the state board of education. If approved, a county election would be called to give the voters in the various dis trics an opportunity to pass on the proposed consolidation. Voter Approval Needed Voter approval of the reorganiza tion plan in a county would be fol lowed by election of a seven-member administrative board, mem bers to be selected in accordance with the population of the various districts. The right of appeal to the circuit court is provided in the bill. Scout Building Work to Start Grading and other preliminary work will start in the near future on a new Boy Scout building at Shelton ditch, Richard C. Rice, area scout executive, said Wednes day. Initial plans for the new building were announced early this week when the Cascade Area Boy Scout council purchased the tract of land where the building will be located from American Legion Post 136. The Legion post sold the land for $1 after getting the city's permission to sell. The land had originally been purchased from the city with restrictions for Ameri can Legion use only. Rice reported that a $55,000 structure will be built on the 190x-80-foot lot which adjoins the Izaak Walton clubhouse. It will be con structed in such a manner that later expansion will be possible. Present plans call for the build ing to be used as a site for dis trict council meetings, offices and training quarters. Rice said that initially it will house seven admin istrative personnel four scouting executives and three clerical work ers. General supervisor of the build ing's construction is Norman Frees of the Cascade council. Monacans were jubilant at the ! baby's birth. If Rainier dies with - 'out an heir, Monaco becomes a 'French protectorate and its 4,000 citizens become subject to (Frances high taxes and military .dratt. Monaco s taxes now are negugiDie ana its miuiary service nil. The news set off celebrations, the ringing of Monaco's 14 church bells and champagne toasts all 1 over town. The telephone system I was swamDed with calls from ! Mfinarfliw rien-ianriincr further news from anyone they could get now t on the line. i Kelly had five granddaughters The tiny port of the 367-acre jbefore the latest addition. Riviera principality echoed withj "la the princess all right?" he Biwvii Is CJ's New Publisher Ad Director Will Take Place of Mainwaring (Picture on Page 3, Sec. t) Edward A. (Ted) Brown, 61 wasv appointed publisher of The Capital Journal Wednesday. He will also become vice president of The Statesman-Journal Co. which publishes both The'Capital Journal and Oregon Statesman. The announcement was made by Charles A. Sprague, president and Mrs. Jennie Mainwaring, director, co-owners of the Statesman-Journal Co. Brown replace Bernard Main waring who died' Saturday. The Mainwaring family will retain ownership of 50 per cent of Statesman-Journal stock and will con tinue to publish The Capital Jour nal under the direction of Mr. Brown. Cushman Managing Editor Glenn Cushman, 29, city editor the past 11 months, was appointed managing editor of The Capital Journal. The new publisher is a veteran of 37 years as a newspaper exec utive with Salem newspapers. He became advertising director of The Capital Journal in 1920 and held that position until the two Salem newspaper properties were merged in 1954. He was then named advertising director for The Statesman-Journal Co. He is a former director of the Oregon Newspaper Publishers as sociation and is presently state vice president for the National Ad vertising Executives association. (Continued on Page 5 Column 2 Pravda Howls At Ringing by Missile Bases MOSCOW m The Soviet Com munist Party accused the United States Wednesday of establishing bases for atomic-armed guided missiles around the perimeter of the Soviet Union. Pravda said this raised the threat of a great new war. The organ of the Soviet Party said reports in the U. S. press prove the United States is plan ning to equip its "bases" in Tur key, Iran, Japan, Okinawa, Alas ka and Western Europe with the most modern weapons, including long-range guided missiles and atomic warheads. "We have hei- far-reaching plans to prepare springboards for atomic warfare over extensive areas ranging from Europe to th,e Far .East," Pravda said. "The planned distribution of the atom ic groups leaves no room for doubt that they are aimed against the Soviet Union and other Social ist countries." Pravda warned Turkey, Iran and Japan that if they permitted the launching of any of "these weapons of war" from their coun tries, Russia will answer with "blows delivered by the same weapons." (The United States has never disclosed whether atomic war heads or bombs are located at overseas bases. I Cities Featured In New Series Jefferson Is the first Mid-Willamette valley city to be covered In a new Capital Journal feature aeries which begins in tonight' paper. The Jefferson story will be found on Page 5, Section 2. Each Wednesday a story and pictures of a nearby ctty will appear. Bernard Docker, 1 It was a gray, misty morning. Crowds of Monacans and tour- ists gathered in the cafes and tensely counted the cannon shots A boy child would have gotten 101 snois. 1 ne oany was aenverea ny raris gynecologist Emile Hervet and a Monacan colleague, Charles Ber- nasconi. . "Oh. shucks, I wanted a boy, ! John B, Kelly, father of Princess : Grace, said in Philadelphia when trild the new. "That's six dirts' Ike Urges Congress to Reduce His Budget Forecasts Further Alert Agafaist Inflation Is Stressed By STERLING F. GREEV WASHINGTON W President Eisenhower reported to Congress Wednesday that a record 1956 prosperity should continue into this year. But he cautioned that more inflation may ride along with it. In the last of his three major annual messages, the economic report, Eisenhower stressed for the third time in as many weeks his strong opposition to tax cuts icT a sober appeal fur restraint in wage boosts. Lists 38 wanted Laws He listed 38 laws he wants from the 85th Congress. They included prompt federel aid for school con struction, more teeth in the anti monopoly and ' antimerger laws, and more help for small firms caught in the credit squeeze. The nation s total output or goods and services reached a rec ord 412 billion dollars last year, and for the final quarter hit a peak annual rate of 424 billions, Eisenhower reported, forecasting continued good times. But his basic theme was an ap peal to industry and labor unions to join the government in block' ing the leapfrog advance of busi ness costs and consumer prices. The figures Eisenhower cited showed that the country achieved a spectacular 21 Mi billion dollar advance last year In Jthe annual rate of production, but he said that half the gain merely reflected price increases. Prices May Climb Further The climb in prices "may not have run its course, he said; it represents one of the "uncer tainties and problems" which cloud the economic future. Eisenhower suggested strongly that he thinks the government is doing all it can do to curb price pressures, short of heavy-handed restraints that would regiment the economy and invite a reces sion. Therefore, he said: "Business and labor leadership have the responsibility to reach agreements on wages and other labor benefits that are fair to the rest of the community as well as to those persons immediately in volved. "Negotiated wage increases and benefits should be consistent with (Continued on Page S Column 1) City Calls Bids On Water Line The city of Salem is advertising ior bids lor construction ol the sec ond water supply line from Stayton Slsland to Salem, and the bids will be opened in the office of City Manager Kent Mathewson at 2 o'clock p.m., Thursday. Feb. 21. Salem voters last May author ized the issuance of $3,750,000 for the project. Proposals call for furnishing and installing about 100.000 feet of 42, 48 and 54 -inch line and bids arc asked on both steel and concrete pipe. The line will be approximately 20 miles long and will come through Turner. Capacity of the new line will be about 50 million gallons a day, which, with the present 3fi-inch line and the John L. Franzen Reservoir at Turner, will give the city about 75 million gallons of water daily. mnlhor i. in !r,nf Tarln Like 'her father. Princess Car - oline was born in the royal pal - j ace. Grace originally had wi.shed to have the child in the Monaco, Hospital, but she deferred to the I wishes o' her husband and most I Monacans when doctors predicted ! no complications were expected, i The doctors had been alerted I about 3 am. and hurried the 1 princess o the special hospitnk I suite arranged near the royal apartment in the palace. Rainier whiied awav lh wuit. ing with his father. Prince Pierre ; de Polignac. and his mother-in- law, Mrs. Kelly, Later Princess Antoinette joined them. Miss Italy Pays Salem Martin Sights Easy Win for Mid-East Plan WASHINGTON Wt House Re publican leader Martin predicted Wednesday that President Eisen hower's anti-Communist program for the Middle East will be ap proved by the House "by a very heavy vote" in substantially the form proposed by the administra tion. The Massachusetts lawmaker made the forecast after he and other (i()P congressional leaders had conferred with Eisenhower for about 75 minutes. It was Ei senhower's regular weekly session with the legislators. Senate Republican leader Know- land of California told a news conference he looks for Senate ap proval of a program designed to block Communist aggression in the Middle East. City Planners Study Idea of Buffer Zone By doi oi.as stcYMorn Capital Journal Writer A special committee of the Salem planning commission was authorized Tuesday night to in vestigate the creation of a new type of buffer zone between resi dential and commercial property. The group is to be named by Commission President Kobert K. Powell. Suggestion that a new-type Tone be created was made by Com missioner I'rlin S. Page, who said he favored allowing such buildings as medical clinic and professional ollices in the area between resi dents and business areas. Under present zoning regulations, he said, a zone change to allow such developments also means that service stations, taverns and other construction sometimes considered objectionable in a residential area could be constructed. 1 SCP B need ior Some KinO 01 :bu"er wning." he declared. ! The commission again delayed 'for 30 days action request by francis V,. Smith to rezone three lots on North Church street north of Union street. The request, which first came to the commission last October, had previously been opposed by the commission but members decided to reconsider it before city council action had been taken. i In other action the commission. after rnnjiderahle discussion, eave tentative approval to the 4S lot j ! Major's Gardens tract located two i miles north of the city on the Willamette river. If It Can: Message N. Jr . v J MlH Ur Galll 1 - Z' if-J n, - Beautiful Miss Rosnnna Galli, better known as MIhs Italy, paid Salem a visit Wednesday and was plenty hnppy with all the hos pitality she received. Roganna shows her name card used at a noon Junction where she was the guest of the Community-Council, the heads of various Salem women's organizations. Later she helped model clothes In a fashion show. (Capital Journal Photo by Jerry CJaussrn) PLANT TO REOPEN 6-Month Strike of 91 At OPP Mill Settled A millworkcrs' strike which idled 91 workers for nearly six months at tho Oregon Pulp and Paper company has been settled. T.e plant will befiin reopening op erations Thursday. The settlement announcement, which has kept the millwnrk fac tory closed since July 31, W'as made joinlly by K. A. Linden. manager ol the company's lumber division: M. I.. Sullivan, the plant's industrial relations manager, and B. W. Slceman, general represen The commission turned down a return to work on a seniority ba reouest from Teddy B. and Louise 'six. rile to construct a house on an undersized lot at norm i-nurcn ana ucmcnt were revealed, il is known Jefferson streets. It was pointed that at one stage in the negotia out that similar request had been I (jon5 the union was asking lor a turned down recently. 15 ccnts an-hour increase for all The request of Precision Builders workers. The company offered a to construct a court apartment and ; 15 cent raise for skilled workers modify rear setbacks at the south- i and a 10 cent boost for unskilled, west corner of Simpson and 24th j The new general agreement ex streets was delayed pending the t tends to April 30, 1958, but pro determination on the ownership of vides for reopening the wage ques Simpson street. i lion by April 30 of this year.- 'Skins 'May Take Place of Tankers LONDON un Two Cambridge University engineers Wednesday riaimed they have invented a floating "sausage skin" they say may solve the world's shortage of oil tankers. The "skins," 600 feet long and weighing 20 tons empty, would be towed by ships and would carry up to 9,000 tons of oil apiece. They would consist of an inner nylon container covered by a thin but tough plastic hide. The cost was estimated at $115, ooo to 1275,000 per "skin." The inventors are engineering professor William Hawthorne, 43, . and John Shaw, a 42-vcar-nld c!ce t ironies lecturer. They told report - ers they carried out their first ex- jperiments with real sausage skins I from a Cambridge butcher. Prosperity a Visit THURSDAY lative of the Brotherhood of Car penters. The announcement said that "differences between millworkcrs' Union 1411 of Salem and the Ore gon Pulp and Paper company, millwork division, have been set tled and agreements signed by the parties concerned." Most of the men who were affected by the strike were mill workcrs hut a few were teamsters and warehousemen who refused to cross picket lines, I inti-n cniri Wnrinitcrl.'iv lh:il ..imi .a men wfi.iM h.. i.mn1rfwi Thursday as the plant reopens and (hat others would be employed as1 soon as a nerd for them develops! and as they become available. Ac-! cording to Forrest D. Van Swerin- gen. business representative ot Millmen's l.ocd 1411. the men will Although no details of the set - A four-foot model of the inven tion, full of gasoline, is now being subjected to wave buffeting in a Mater tank to make sure the "skins" can stand up to heavy seas. bhaw said the "skins" not only could be produced quicker and cheaper than conventional tank ers, but could be flown empty back to oil pipeline outlets for a fresh load, thus saving weeks of time. The Invention has been dubbed the "NOB," for "nylon oil barge." Shaw said the skins, when load ed, would travel four-fifths sub ; merged. He claimed they could be j towed easily at 10 to 15 knots by a loaded tanker in normal weather. No Sign Seen Depression Ahead By MARVIN L. ARROWSMITII WASHINGTON W President Eisenhower said Monday Congress has the duty to cut his 72 billion dollar budget If it can do it. Eisenhower said he agrees with Secretary of the Treasury Humphrey that federal spending should be cut if possible. The President added there is no indication the nation is about to encounter a depression. At his 100th news conference since taking office and his first since last Nov. 14, the President also spoke out sharply against any division of his Middle East pro gram into separate military and economic aid packages. Would Destroy Intent Some Congress members have talked of splitting the Eisenhower program into two measures, in stead of one as asked by the President. Any Such division, Eisenhower said emphatically, would destroy what this government is trying to do prevent any aggression by the Soviet Union in tho Mideast. A reporter recalled that Humph rey said last week unless the gov ernment stopped taking so much out ol the economy there would be a- hair-curling depression. Humphrey expressed the hope that Congress would be able to cut the budget. Eisenhower said there were no differences between Humphrey and him. Hp said Humphrey's re marks did not deal with the im mediate future, but rather with the long range fiscal picture. Only Eslimates The President said he always has taken the position that every dollar possible should be saved, and the budget figures submitted to Congress are only estimates. Ho went on to say that if Con gress can cut proposed spending, it has a duty to do so. f.isenhower also expressed the view the nation probably never again would be confronted with I depression such as the one in the 1930s. On other subjects, the President had this to say: I.AHOIt RACKETEERING -Ei senhower was asked whether his program for amendment of the Taft-llarllcy labor law would deal with labor racketeering. He re plied he had si,gested in the past that the welfare and pension funds set up by unions he open to in spection. Rut he added that in his opinion the federal government should not get into the field of exercising police power regarding any labor racketeering at least not nnv more than is necessary. SOVIET RELATIONS Eisen- hover said he had not detected j any hardening or chance in Rus- s' s altitude toward the United States. This was in reply to a question as to whether he felt lh cold war was intensifying. The President added that he sees no poim ai mis ume in renewing per sonal correspondence with the So viet leaders. CARINET Eisenhower said "1" pl;,ns no changcs in his Cabi net at this time. Asked whether Continued on Page 5. Column 5) ISews in Brief For Wednesday, Jan 2.1, Vj7 NATIONAL Ike Sends Congress Kconomic Message . . Sec. 1, Two Chicago Sisters Pound PI Slain in Woods . Sec. 1, T. 1 LOCAL City Planners Study Butler Zoning Sec. I, P. 1 Willamette Hiver Days Plans Discussed Sec. 1, P. 3 STATE Jefferson Attracts New Industry Sec. 1, P. S Senate Demos Switch Support To Lewis Sec. 1, P. 1 FORKK'.N Rus.sia Warns Missile Bases Pose War Threat .. Sec. 1, P! 1 SPORTS North Salem Wins .... Sec. 2, P. 1 Patterson Challenges Marciano Sec. 2, P. 2 REGULAR FEATURES Amusements Kdttorials locals ........ Society Comics Television Want Ads Markets Personal Problems Crossword Puzzle Home and Garden ... Sec. 1. P I ... Sec. 1, P. 4 ... Sec. 1. P. $ ,. Sec. 1, P. 6.7 .... Sec. 2. P. 4 ... Sec. 2. P. 5 . Sec. 2, P. .. 9 ... Sec. 2. P. 7 .. Sec. 1, P. 10 .... Sec. 2, P. 4 .... See. 3, P. Y