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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (May 3, 1957)
Salem,' Oregon, Friday, -May 3, 1957
Page 2 Section 1
THE CAPITAL JOURNAL"
Beck Puts Up
D. C. Bond on
WASHINGTON MV-Dave Beck, Teamsters Union boss in.
dieted for income tax evasion, Friday posted $5,000 bond pend
ine arraifinment May 18.
Beck went voluntarily to the U.S. marshal's office for a
technical surrender under a warrant' telegraphed from Ta
coma, Wash., where a federal grand jury returned the in
dictment Thursday accusing him of failing to pay $56,420 in
U.S. Stand in
LONDON m Sir Winston
Churchill criticized the United Na
tions Friday for its attitude to
ward the British-French attack on
Egypt last fall. He said the U.N.
had not helped cither the free
world or the cause of peace.
The 82-year-old former prime
minislcr addressed the Primrose
League, made up mostly of con
servatives, at Royal Albert Hall.
It was his first public address in
Churchill stoutly defended Sir
Anthony Eden, the prime minister
who charted the policy of inter
vention and hati to resign early
this year because of III health.
Churchill did not mention the
United Stales or its port in help
ing bring about the withdrawal of
the' British-French and Israeli at
tacks on Egypt.
Churchill said, "The world
around us is changing fast. For
good or ill, new and disturbing
powers are falling into the hands
of mankind. They may bring an
unsurpassed blessing or a sense
less and meaningless wholesale
destruction. We must hope that
man's wisdom will match his
NEW YORK W - Thoughts of
summer were uppermost in retail
shoppers' minds this week, ac
cording to Dun & Bradslrcet.
Women splurged or. cotton
dresses, sportswear and lingerie.
Men also showed keen interest in
warm weather apparel, with
sports shirts, sports jackets and
lightweight suits In strong de
mand. The upsurge in buying of men's
and women's summer duds lifted
the notion's total retail trade mod
cratcly above that of . a year ago,
Dun and Bradslrcet said, even as
the usual post-Easier dip In cloth
lng sales continued. '
Total dollar volume of retail
trade around the country ranged
from 2 to 6 per cent higher than
a year ago for Hie week ended
May 1. Percentage changes on
the Pacific Coast were unchanged
to up 4.
Botany Prof Emeritus
At Oregon Stale Dies
CORVALLISIfl Funeral serv
ices arc being arranged here for
Charles E. Owens, professor
emeritus of botany at Oregon
He died in his home here
Wednesday at the age of 79.
Owens was a member of the
college faculty from 1912 until
1947, when he retired.
Survivors Include the widow,
Reds in Aslor Offire
NEW YORK (iP-The Communist
party now has Us national head
quarters in offices formerly occu
pied by capitalist Vincent Astor.
Astor, who has one of America's
largest fortunes and heads the As
tor family in the United Stales,
sold the property in IM2. The
Communist party Is leasing it.
Br DOUGLAS R. CORNELL
WASHINGTON Ml Former
President Harry S. Truman de
clared Friday the Eisenhower ad
ministration is driving him toward
socialism with policies he said nrc
raisins interest rates to home
owners and Toreing Ihe little fel
low out nf buiness.
"I'm not a Socialist, " Truman
said, "but they're driving me that
Speaking in his old give-'em-hell
style to the Klectric Consum
ers Information Committee, the
former chief executive said the
most dancerous thing facing the
country today is what he termed
an administration objective to
"turn the IS billion or 20 billion
dollars of the taxpayers' money
that developed the atomic energy
program over to private owner
ship." When the atom is developed ful
ly. Truman said, it can be the
source of all the worlds power
and bring about the development
of great desert areas.
CHINA CITY RESTAURANT
3555 South Commercial Ph. KM l iUl Orders to Go
FRIDAY - SATURDAY - SUNDAY
oCihbii at Jlie Oraan
''taxes due on 1S50 income.
He was taken to a basement
cell block in the U.S. Courthouse
and fingerprinted in the usual
routine. The officers then took him
before U.S. District Judge Ed
ward M. Curran for a decision as
Curran set the amount in a
bench conference with Gerard
Trcanor, an attorney for the
Nothing to Say
Beck stood by in tan suit and
dark glasses without saying -a
Once Curran decided on the
amount of bond, Beck had a wait
of about 45 minutes until someone
brought in a cashier's check to
complete the bond posting.
Curran ordered Beck to appear
before a U.S. commissioner on
May 13 either here in Washington
or at Tacoma.
Treanor told newsmen that if
Beck appears before the commis
sioner here on May 13 he will waive
a removal hearing and show up
Kir arraignment at Tacoma at a
Beck, while waiting to make
bond, was asked it he had any
comment on his indictment.
'I wouldn't say one word about
it because I don't know no more
about it than you do now," Beck
said. "I'd have to consult with
In Curran s courtroom. Beck
had to wait about a halt hour
while a dozen other cases were
pleaded routinely. Me shook his
head impatiently several times at
Whistles to Himself
But while he was walling later
to make bond, Beck whistled
quietly lo himself and' appeared
in a good humor.
Beck told a renorlcr ho has
hired a new attorney to appear
wmi mm nexi Wednesday when
Beck is due to show up for addi
tional questioning by Senate rack
ets investigators. He declined to
tell his new atrorncy s name.
former Sen. James H. Duff (R-
Pul has dropped Beck as a client.
In Beck's earlier appearances be
fore the Senate committee a mem
ber of Duff's law firm, Arthur
Condon, sat at Beck s side during
The grand Jury which Indicted
Beck at tacoma was secretly con
The first count accused him of
failing lo pay $56,420 in taxes on
sh,82B ot unreported li'50 income
It says Beck and his wife de
clared a taxable income of $4ti.
396 and paid $15,540 that year. In-
slead, it said, Ihey should have
paid ST 1. 9m on $135,226 income.
Ironically, a delay by Beck In
filing his income tax return Hint
your mode It possible to bring
the indictment within the time al
lowed by the statute of - limita
tions. The time would have ex
pired March 15 if he had tiled his
return before the regulation dead
line in 1951.
The second indictment accused
Beck of assisting in (he prcpara
tion of a false return which said
the Teamsters' Joint Council No.
2D Building Assn. in Seattle had
expended $16,718 in 1950 for build-
ine payments and alterations.
I tie actual amount expended
the indictment charges, actually
was known by Beck to be sub
Knch of the counts carries a
maximum sentence of five years
imprisonment and a $10,000 fine.
There ore approximately 250
religious denominations in the U.S.
Driving Me to Socialism, Says HS T
"But," be went on, "if it Is de
veloped like the secretary of the
treasury has' controlled money
they will choke it to death and
half the people will starve.
"You ought not to get me start
ed on it. I'm all steamed up."
Truman had some prepared re
marks (or the committee, an or
ganization set up by labor and
farm groups and electric cooper a-
i lives fighting for public power de
velopment. But he tossed most of
Switching his fire to Secretary
.of the Treasury Humphrey, Tru
man said Humphrey "wants to
choke us to death with interest
The raising of interest rates,
Truman commented, "is just an
; effort to put labor in its place.
'Well, labor's place is in the sun."
j Various spokesmen for the Klec
tric i onsuiners Information ( oni
jmitlee urged the former President
jto "start shinning again" in the
: battle for public power. Sen.
1 Wayne Morse (D-Ore). who at
and American Menu
In Flood Path
DALLAS UV-Thc city of Wich
ita Falls geared today for possi
bly its worst flood in seven years
after torrential downpours sent
rivers and creeks surging to peril
Another deluge of heavy rains
late yesterday soaked water
logged north central Texas and
areas along the swollen Sabine
Kivcr in the southeastern part of
Flash floods inundated streets
in downtown Wichita Falls, a city
of 125,000 near the Oklahoma bor
der. The lower Sabine continued to
Quits in Row
OREGON CITY W Hi Jack
son resigned Thursday as a Red
Cross disaster representative in
Jackson said a Red Cross field
representative had criticized him
because he had entered a farm
where 26 stranded berry pickers
were staying Wednesday, taking
food lo them.
Eldon Snider, the owner of the
place, later told the pickers to
get out. Jackson then got the
County Welfare Department to
house the group in Portland.
"When Clackamas County can t
feed hungry people." Jackson
said, "I don't want to be in it.
They said I had no business to
go in to the property because the
owner said no trespassing, but the
land wasn't posted, and when
people arc in need I feel I must
go to them."
Jack Sutherland, Western Ore
gon Red Cross field representa
tive, said, "Hi Jackson has been
doing an outstanding job as dis
aster representative. But if we're
told to stay off land, 1 feel we
should stay oil. We never tres
pass; we can't act as police."
Thursday Norman wiisen, state
abor commissioner, discussed Ihe
situation with Clackamas County
officials. The men have been
without work since their arrival
Darrcll Jones, Clackamas
County commissioner, said he had
been informed that 200 more
Iransienl berry pickers were on
Iheir way to Oregon and that
some 1,000 were under contract
to work in the state's berry lields.
Oregon's berry crops will not
be at their peak for several
PORTLAND HI Some state
ments made in the Oregon Legis
lature, which Is considering set
ting up of a lluce-member salar
ied parole board were called
inaccurate Thursday by members
of the state Board of Parole, who
presently are not paid.
Board members said they now
are considering paroles 60 to 70
days ahead of lime, inslead of
being behind schedule. 'Ihey said
other Inaccuracies also have been
made in statements at Salem.
Charles II. lluggins is chairman
of Ihe board. James J. Richardson
and L. W. Mallctt are the other
Contract Awarded on
Hills Creek Reservoir
PORTLAND Ml The Corps of
Engineers Thursday awarded one
contract and called bids for an
other project or the Hills Creek
Reservoir on the middle fork of
the Hills Creek Reservoir on the
middle fork of the Willamette
I.undmark Bros., Colton, won
n $50,751 contracl for construction
of a bridge on relocated County
Road .TOO over Salt Creek.
The corps called for bids on
clearing some 475 acres of land
at the reservoir site.
tended the breakfast meeting, :
called Truman the greatest fight
er in protecting the resources of
the people since George Norris,
the late senator from Nebraska
who was father of the TVA.
Truman hit hard at the admin
istration's power policies in his
prepared remarks. He told his
audience that the administration's
partnership development plan
means the private electric com
pany gets the powerhouse and
dam and the government gets the
fishladder and "they'll he charg
ing the fish toll to get up that
Truman described the admin
istration's Hells Canyon program
as an "outrageous" giveaway
that "would plunder the great na
SAT. NITE MAY 4TH
& Sunday 1 P.M.
CMdfn Under 11 r.
Accompinitd by Adult
10 A. M. Sat.
Bullet Creases CostelloV Scalp
Gunman Flees in Black
By RAY KOHN
NEW YORK W - Gambler
Frank Costello was shot and
slightly wounded last night :n
what police described as "an ap
parent attempt at assassination."
The 65-year-old Costello was
fired on almost point-blank by a
gunman as he entered the lobby
of his Central Park West apart
After Ihe gunshot nicked his
scalp, Costello often called the
"No. 1 mystery man" of the
American underworld and politi
cal scene cried in his raspy
"Somebody tried to get me."
,32 Caliber Slug
The bullet struck Costello near
the left car. furrowed under the
scalp partway around Ihe back of
the head and emerged close to
Ihe right ear. Later, in tho apart
ment house lobby, police found
what appeared to be a Battened
Blood flowing from his wound.
Costello was taken by taxicab to
nearby Roosevelt Hospital, where
X-rays disclosed no damage to the
skull. Treated for the superficial
wound, he then was escorted to
a police station for questioning.
ine snooting occurred about
11 p. m. shortly alter Costello ar
rived by car at his apartment
residence accompanied by Wil
liam Kennedy, a theatrical agent.
The pair had just left Costello's
wife Estelle and Gencroso Pope,
owner of an Italian - language
newspaper, at an upper East Side
Pete Keith, doorman of the
plush apartment house, said Cos
tello was just leaving Kennedy
and entering the building when
a black sedan stopped at the curb.
Keilh said a heavy-set man about
six feet tall rushed by him and
inio ine loony.
Only 15 Feet Away
The gunman fired while about
15 feet from Costello. the door
man said, then dashed past him
to the black sedan, which raced
rrom the scene.
Costello testified in 195) during
televised hearings of the Senate
Crime Committee headed by Sen.
Estes Kefauvcr (D-Tenn).
On the stand, he admitted in his
gravelly voice caused by a
throat ailment that he had been
a gambler and bootlegger; but
said mat in recent years he had
been a relired "investor."
He was powerful in prohibition
era rum running, and asserledly
in New York politics. Some have
lermcd turn Ihe lormer "slot ma
The only conviction on the Si
cilian-born Coslello's record was
40 years ago for illegally car
rying a gun.
After Ihe Senate hearings, how
ever, ne was convicted of con
tempt of the crime committee and
served a year at Milan, Mich.,
In 1954 he was convicted of
evading $28,532 in federal income
taxes. He began a five-year pris
on term last May but was released
on $25,000 ball last March.
Wcnutchee to Crown
Apple Queen Tonight
"r.nrtiL-nrjr, wi jewe
Rrumhnuah will ho prnwnnH cv;
Hnv nipht n. nnnan tf lha Ifllh
annual Washington State Apple
piossom resuvai. uov. Kosellini
is scncnuied to do ihe honors.
The thrpp.rinv chnw onl iinJo
way Thursday nighl with a "Land
ot r.lernal Youth" pageant pre
sented by students from Wenat
chee Valley schools. The festival
tural resources that belong to the
Hells Canyon has been the center
of a long, hot dispute over wheth
er the government should build
a single high dam or the Idaho
Power Co. should build three
smaller dams on the Snake River
between Oregon and Idaho.
The Federal Power Commission
authorized the power company to
go ahead and the decision was
JALOPY DESTRUCTION DERBY
SAT. NITE... MAY 4lh
Timt Trioli 7:45
NEW YORK Gambler Frank Costello
arrives at police station for questioning
last night after he was treated for a gun
shot wound to his head. A gunman, who
followed him into his apartment building,
House Approves Last
Tax Package, Key Compromise
By PAUL W. HARVEY Jr.
Associated Press Writer
The Senate Taxation' Committee
went to work Friday on the House
tax program, with signs that the
bills are headed for stormy going.
The House gave its approval
Thursday to the last three bills
of the package, and it then pro
ceeded to vote 43-6 for the com
promise key district plan to re
distribute, basic school lunds to
The House had approved the
personal income tax revisions on
On Thursday, it first voUd 33-26
for Ihe corporation tax bill, which
Increases the average tax in cor
Senate Unit OKs
Fa ir Con tro I Mo ve
The Senate Agriculture Commit
tee voted 5-4 Thursday to recom
mend passage of a bill that would
place the state Fair Commission
under the Department of Agri
culture. The board now is an independ
ent agency, but its members are
appointed by the Governor.
The deciding vote in the com
mittee Thursday was cast by
Sen. Francis Ziegler (R), Corval
lis. He had announced recently
that he was undecided how to
ballot, holding up action on the
The bill was introduced by Sen.
Dwicht H. Hopkins ID). Imblcr.
but he recently said he was with
drawing his active support. Hop
kins voted with the majority, now
ever. Voting with Zicaler and Hop
kins were Sens. Musa, Natcrlin
The four dissenters were Sens
Chase, Quiring, Ith and Cam-
upheld by Ihe Supreme Court, but
the fight still is going on in Con
gress. Now the administration has
authorized a rapid tax writeoff
for two of the private dams,
under a drum fire of protest.
Truman said it was "outrageous
for the administration to turn over
to the Idaho Power Co. the Hells
Canyon dnm site the greatest
and most valuable dam site re
maining in America."
1 ' . ' '' -!
poration income from 5.1 to 6 per
Then it voted 35-24 to boost
inheritance tax rates, make insur
ance policies of more than $60,000
subject to the inheritance levies,
and tax property worth more
than $25,000 when It is left by a
husband or wife to the surviving
Finally, the House voted for
higher gift taxes. ,
The entire program is designed
to produce 278 million dollars, in
cluding use of the 32 million
dollar surplus now on hand.
The key district bill goes back
to the Senate, which had approved
a version of the measure that
The committee also recom
mended approval of a House
passed bill that would let the
Department of Agriculture set uo
control districts to rid Western
Oregon of ragweed, a principal
cause of hay fever.
The Legislative Joint Ways and
Means Committee has approved
an appropriation . of $50,000 to
fight the weed, and it added
Jackson and Josephine counties
to the list of counties where con
trol areas could be created.
The committee unanimously
recommended approval of an
other House-passed measure that
would make it unlawful for milk
producers to add water to their
f. It - A . S
fired one shot at Costello from about 15
feet in the lobby. Hospital doctors de
scribed the wound as slight. Note blood
spots on lapel of his coat from the wound.
would have caused Portland and
Eastern Oregon school districts to
lose heavily in their school fund
apportionments. The House
changed it so that they would be
hurt little or not at all.
The vote came after the House
had voted to reconsidei the action
the previous day, when it sent
the bill back to committee.
The House passed, with 11 dis
senting voles,- a bill to issue
$12,600,000 worth of bonds to
modernize the Oregon Oast
Highway between Gold Beach and
This bill goes to (he Senate,
wmcn already nacL approved an
other bill to do the same thing.
In a move intended to reduce
Oregon's high divorce rate, the
House passed a Senate hill to pro
vide for a 60-day waiting period
between the filing of a divorce
suit and the court hearing on the
matter. This is intended to be a
cooling off period.
But another Senate divorce bill!
went down to a 28-23 defeat in I
the House. This one would have
permitted remarriage three
months after the divorce. So the
present six months limitation will!
continue. . j
The Senate voted 23-5 for a
House resolution for an interim j
committee to study whether i
boards and commissions could be
abolished or consolidated.
It has to go back to the House, 1
though, because Ihe Senate tacked
on an amendment that also would .
have the committee investigate
whether boards and commissions
are issuing rules and regulations
contrary to law.
The committee would .consist of
three representatives, two sena
tors, and four persons appointed
I by the Governor.
AT YOUR SALEM'S
Also An pic
from Iht Old Vftstll
D Kids Sat. Matinee
Somoza Tells Deleat
Of Honduraii Attack
By RICHARD G. MASSOCK 1
MANAGUA. Nicaragua Ifl
President Luis Somoza told a
cheering thron g tsalnt hii anyg
President Luis Somoza told a
cheering throng last night a tiny
N caraeuan force had wrested the
border town of Mocoron from a
Honduran garrison five times its
As the crowd exulted, the Pres
ident's brother. Gen. Anastasio
Somoza Jr., shouted that the Nic-
araguan Hag is flying over the
Indian settlement on Central
America's Caribbean coast. The
two countries have disputed the
border for years.
Nicaraguan and Honduran ac
counts of the border dispute var
ied. Each country insisted that
Mocoron was traditionally theirs.
A Nicaraguan national guard unit
reportedly occupied the town two
weeks ago and Honduran troops
took it back Wednesday.
in Tegucigalpa, the Honduran
capital, the ruling military junta
ordered a blackout on any dis
patches about military operations
except official announcements.
Ground and air clashes between
Honduran and Nicaraguan forces
were reported yesterday. The jun
ta issued this communique last
"It is emphatically denied that
the Honduran air force has been
defeated or has suffered damage
as has been affirmed by Nicara
guan publicity organs. The forces
are standing firm, and ready to
repel any aggression against our
The Honduran government or
dered all men between 18 and 32
to register for possible military
In Washington, the council nf
Organization . of American States
(OAS) voted unanimously to send
a fact-finding mission to the area.
It also called on the western
hemisphere's foreign ministers to
consult on the situation.
Gen. Somoza said 42 Nicara
guan soldiers defeated 250 Hon
durans in the battle for Mocoron,
a town of 1,000 population. The
President's brother, who is chief
GI Fares Extended
WASHINGTON in 'lnllrnarfc
have - extended for another year
beyond June 30 the reduced fur
lough fares for servicemen travel
ing in uniform at their own ex
pensc.uThe reduced fares amount
to about VA cents a mile.
Gates open 6:45 show at Dusk
"Every Wed. is $1.00 per car"
i The Wagons!
Ann Sheridan in
"COME NEXT SPRING"
Open 6:45 Starts 7:15
Tuesday Is Buck-a-Car Night
FINEST ENTERTAINMENT CENTERS
Phone Empire 2-8284
FIRST MOVIE T08ETHE
Plus High Adventure
20c For Everyone 50c Adults, After 2 P.M.I
of the armed forces, said 28 of
the 40-man Nicaraguan garrison
which held Mocoron until Wednes
day were missing after the Hon
The President had said first that
35 Nicaraguan soldiers were killed
in the attack. Later he claimed
only two were killed.
M Noon to II P.M. SI'
All Summ.r Long 04
Benton Lane Pool
Hiway MW 3 Ml. S. Monro.
Phono J. C. Wyman 1-2536
Fri. - Sat. - Sun.
With a Thick
Milk Shake ...
Dairy Queen Products
WHtHS THE f.0Q8 1& 5WP
MGM's Comedy Cyclone!
T 11 . " 1 1 i-
cmiiuscon i uniotoior
-ril It Portugal
MUullta jai. iviATINtE
JUNGLE JIM IN
Adults or Children, 20e
Special Attention to
Gales Open 6:45 P.M.
Show Starts at Dusk
Also Heart Worming