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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (May 10, 1957)
'Journal THE WEATHER BIOSTLY CLOUDY tonight, gator lay, with occasional showers. Low tonight. .50; high Saturday, 68. 2 SECTIONS 20 Paget 69lhYear,No. 110 01 41 rsj nr m int7 oaiem, vrreguu, xnuuj', itiaj iv, iwi -matter at Sail To Caoital "it ii - -1 Riot pple City Water Slug Grazes 'Look9 Chief In Thailand BANGKOK, Thailand Bowles and his party narrowly escaped death or in jury today when six bullets were fired at a. United States Embassy speedboat carrying the party on a Klcrhrcpplno pvrnircinii O . One bullet passed directly be neath a camp chair on which Cowles was seated, passing be tween his legs and smashing into the bulkhead within inches ol news correspondent Edward R. Ken nedy. 200 YARDS AWAY . The bullets were lired by un identified assailants using a 38 caliber submachinegun from the shore about 200 yards away. The launch on which the party was riding is a former U.S. Navy picket patrol boat being used by a Navy attache and was flying the American flag which was dis played prominently. The shooting occurred five miles north of Bangkok on the Chao Phya River which is the main waterway of Bangkok. Cowles and nine other Americans were returning from a visit to an Probers Uncover Big Beck Prof its In Mortgage Deal WASHINGTON Of) Senate -rackets investigators developed testimony Friday that Teamsters boss Dave Beck and a mort gage banker split $11,585 derived from handling a fund raised by unions for the widow of Beck's "best and closest Wriend." House Drives Economy Ax InUSDABill WASHINGTON Ifl The House Appropriations Committee Friday sharply criticized the Agriculture Department's farm policies. It cut $272,566,860 from the department's money requests for the fiscal year starting July 1. It recommended $3,692,889,757 in new appropriations for the depart ment while asserting a new pro gram is imperative to ease the economic plight of the nation's farmers. The committee particularly questioned the advisability of con tinuing the acreage reserve pro vision of the soil bank program and ordered a curb on future commitments under it. The committee action on the agriculture bill brought to more than l'j billion dollars the amount it has cut so far this year from appropriations requests sub mitted by President Eisenhower. Fund reductions recommended by the committee are subject to House review next week. They were designed to hold the depart ment's normal activities to cur rent year levels. Weather Details Maximum ynlcrday, 72: minimum today, M. Total 24-hour precipitation: .01; for month: 1.32: normal, .67. Sea ann precipitation, 30.34; normal, 3(1.59. River heleht, .7 of a foot. (Report by U. S. Weather Bureau.) MILE FROM LAKE Rangers 79 - Year - ROSEBURG UPh- Two forest rangers Friday morning came upon Andrew Kolstad, 79-year-old man from near Rogue River who had been reported lost since Wednesday morning. He was on an old logging road, only a mile from Diamond Lake Lodge, high in the Cascades, from which he had walked away two days before. He appeared to be In good condition. Search for him late Wednesday and all day Thursday had been unavailing, and searchers had about concluded he had started hitchhiking back to his former fenme in Minnesota. But (t 8:20 a.m. Friday, Eugene Leiit and Chuck McHenry of the (UP) - Publisher Gardner cient Thai capital grounds near Bangkok. NO EXPLANATION No immediate explanation was available for the shooting, one unofficial source' opined that "someone was shooting at the American flag, trying to create an incident. Cowles is president of the Des Moines Register and Tribune and publisher of Look magazine. Aboard the launch besides Mr. and Mrs. Cowles and Kennedy, were Mrs. Kennedy, Richard Mc Carthy, USIA director for Bang kok from Webster City, Iowa,; Donald Roechlen, USIA liaison of ficer from West Los Angeles, Calif., and his wife; Mrs. Blake Lanuri of Menlo Park, Calif.; Narciso Reyes, SEATO public re lations director from Manila, and Mrs. John Bottoroff, Toledo, Ohio. The Seattle mortgage banker, Donol Hedlund, said Beck handled the transaction for Mrs.' Kay ben enev. widow of the man Hed lund said was Beck's best friend. It was testified Beck handled the deal as trustee for "the Ray Leheney Memorial Fund," about $80,000 which had been collected from unions after L e h e n e y's death. Leheney formerly was head of the Union Label Department of the American Federation of La bor. CALLED 'KICKBACK' Hedlund's story was related to the Senate rackets investigating committee under questioning. It capped earlier testimony that Beck collected a one-third share of something over $20,000 in brok erage fees on the investment of union funds in the mortgage mar ket. Sen. McClellan (D-Arkl, chair man of the committee, spoke of the payments to Beck as a "kick back." There was testimony from Hed lund too of substantial profits to Beck from joint purchases of land later resold to a company in which Hedlund was interested. But the banker denied the land deals were a "payoff", as sug gested by the committee counsel Robert F. Kennedy, for Beck's in vesting' union funds through Hed lund's companies. $58,959 TAKE In a later summary of the testi mony, Kennedy said it showed Beck received a share of profits or fees totalling $58,959.91 on mortgage purchases and sales, and the real estate deals. Kennedy told newsmen there (Continued on Page 5, Column 4) Locate Old Man Big Camas Ranger Station found him. Although the general area is one of steeply pitched mmntains, the immediate site is compara- tively flat and there are some cabins in the region. Kolstad had been at Diamond Lake Lodge a resort 90 miles east of here with his two daugh , i i i i ters wno nave neen eiiipiu.ru there in getting tne loage reaay for the season. The last persons to see him. before he was found, were Cali fornia Oregon Power Co. 1 men. who said he was near a road at 11:30 a.m. Wednesday. Bloodhounds, brought to the scene by Norman Wilson of Dal las, tracked him to the road tod there lost the scent Rate Cut Favored Senators Complete Tax Draft Personal Income Bill May Go to Floor Saturday By P4UL W. HARVEY Jr. Associated Press Writer The Senate Taxation Committee finished work Friday on the Democratic personal income tax bill, with expectations of send ing it to the Senate floor Satur day morning. Although a majority of the seven-member committee is op posed to the bill, it looks as though the bill, as amended by the committee Friday, will get out of the committee because the three Republican members indi cate they will abstain from voting. MUSA PROPOSAL REJECTED The bill would repeal the 45 per cent surtax, but incorporate it in to the rate structure by making the rates from 4 to 11.6 per cent; boost the personal exemption from $500 to $600, and change the 2 per cent withholding tax from a flat 2 per cent to . the actual amount the taxpayer owes. The committee rejected the proposal of, Sen. Ben Musa (D), The Dalles, to have a range from 2 to 8 per cent and eliminate the federal tax deduction in figuring the state tax. Musa. a member of the com mittee, said he would opposethe bill. At the present stage, it looks as though the committee will vote 3-1 for the bill, with the three Republicans not voting. This makes it appear that the bill will go to the Senate floor with its fate in doubt. RAISES $149 MILLION The Tax Commission told the committee Friday that the House bill would raise 149 million dol lars, in the next biennium. If the bill is defeated, there would be 140 millions available from per sonal income tax sources. The Musa plan would have raised only 128 millions. The Joint Ways and Means Committee considered its subcom mittee's recommendation that the basic school fund, which amounts to $80 per year per school census child, be increased to $90. But the committee postponed consideration until Monday so that it can find out what will happen to the revenue bills in the Senate. If the Senate defeats the per sonal income tax bill, it is doubt ful whether the committee would increase the basic school fund at all. The Tax Committee made two amendments to the tax bill Friday. (Continued on Page 5, Column 1), Long Session Tires Legislators l $$J o 3d m Weeks are dragging by in the Oregon legislature and Rep. Wlnton Hunt, Wooti burn, ai well as hit 89 colleagues, were all down In the mouth Friday ai 117th session day tet new record. The eld record of LATE FLASHES PORTLAND (A-Leo Smith, ap pointed Multnomah County dis trict attorney Thursday by Gov. Holmes, said he would take the oath of office at t p.m. Friday. K. C. Tanner, attorney for ousted Dlst. Atty. William Langley, said he had sent to Smith a note cau tioning him that he has "no legal authority" to the office. The House Judiciary Commit tee Friday voted unanimously to table the Senate-passed bill to amend the 1955 Inadvertent libel law. This means the bill will die In committee. Senate joint resolution 30 call ing for a vote of the people on amending the state constitution to allow Circuit judges to sit pro tern with the State Supreme Court was approved by the House 34-24 todayi Sub Rescues 10 Airmen From Hawaii Waters HONOLULU Ml The subma rine Bream rescued 10 men from a raft early Friday after their Navy P2V patrol plane ditched in the Pacific 170 miles southwest of here. The downed crewmen were "all uninjured and in good condition, the submarine radioed. Rescue came after the airmen had been adrift four hours. The Neptune's pilot ditched the plane at 8:40 p.m. when its star board engine caught fire on a rou tine training flight; , Crewmen said there was no time for the crippled plane to send out distress signals before it went down. The Navy praised the pilot for a "spectacular job" of putting the" burning plane down on the water and the crew for getting emer gency signal aides into the water. The crew included: Lt. J. F. Ahearn, Framingham, Mass., the pilot; Lt. Robert E. Melhorn, Manchester, N. H. copi lot: Lt. (j.g.) Robert L. Burns, Wall, S.D., navigator; Ens. Adrian D. Joki, Red Lodge, Mont., anoth er navigator; Radioman D. G. Stewart, Port land, Ore.: Radioman T. J. Mad- igan, Redmond, Wash.; Plane Capt. R. J. Hardcsty, Wichita, Kan.; Radarman u. u. uoyer, Payne, Okla.; Ordnanccman C.W. McCabe. Inelewood. Colo.: Me chanic T. H. Montague, Kyle, Tex. Building." Cash Bills Advance The Joint Ways and Means Com mittee today gave final approval to a $5,067,000 state building pro gram and sent it to the floor of the House. It also approved seven million dollars to meet higher eduaction building needs. ' (See Page t for details) 15-18 Pet. Drop Set To Homes Council Likely . To Okay Study Group's Table A- water rate reduction in the average Salem home owner brackets is recom mended by the subcom mittee of the general water advisory committee, which adopt ed this and other recommendations of the sub-group at a Thursday meeting. Little doubt appears that tne new rate schedule will be approved by the City Council which must act to make it effective. IRRIGATION CHANGES In a readjustment of the rate schedule some revisions upward are made in higher brackets, main ly industrial, to offset the reduc tion for average users. The read justment also relieves home own ers of the burdensome irrigation cost that resulted when irrigation rates were removed last year. Among other recommendations is one that multiple dwelling units, such as apartment houses, would be charsed on a basis of the num ber of dwelling units rather than on a basis of one point ol oc liverv. Members of the subcommittee submitting the report are Peter finnnar. chairman. Walter Gerth, James Loder. uerry ( rank, uavia O'Hara, Lewis Mitchell, and Jo seph- A. H. uoaa. carrou meeKs is general committee chairman, YIELD SLIGHTLY DOWN While the proposed rate schedule would yield an annual total for the water department somewhat less than the present rates, an es timated $519,188 against $555,013, it is calculated that it will be enough to finance the department s outstanding bonds, to which $3,750, 000 was added in 1956 to pay for the new Stayton Island-Salem wa ter line. Not included In the total rev enue estimate for the year is ap proximately $65,000 that comes from so-called municipal users, namely the State of Oregon, school districts, and others. For the average user brackets, those ranging from, 3000 to 8000 cubic feet a month, tne reduction as recommended would range from 15 to 18 per cent. The reductions extend through the 25,000 cubic foot bracket. For comparison, present and pro posed rate schedules are: Presents-First 200 cubic feet, 40 cents per 100; next 300, 25 cents per 100; next 14,500, 15 cents per 100; next 485,000, 7 cents per 100; over 500,000, 6'A cents per 100. The $1.20 minimum buys 360 cubic feet. Proposed First 500 cubic feet, 30 cents per 100; next 14,500, 12 (Continued on Page 5, Column 3) 116 was set In 1951. When will the 1957 session end? Some think never, but prob ably within tw wl. (Ciplafl Journal Photo) Firemen J 7 ' - - " x I ' Fire hose of the Salem. Fire Depart- . merit was getting a stiff workout Friday in an annual test which also put men and trucks through some exercise. Water is pumped through the hose and up the high Higher Taxes Set For Fringe A reas In Reassessmen t Higher taxes are in prospect for property owners In Salem fringe areas as a result of action by the county assessor's office. County Assessor Harold Domogalla said Friday that an average 40 per cent increase in made In such areas as Kcizer,- Four Corners, East Salem and the districts south of the city limits. All of the adjustments were made within the borders of Salem School District No. 24CJ. TAX RATE EXPLAINED The assessor explained that faxes will not increase exactly In pro portion to the increase in assessed value because with the value of several thousand properties going up, the millage rates will tend to go down. Exact effect on the individual tax 'bills will not be known until all of the budgets for the taxing districts are approved. the suburban growth around Salem has never been assessed proportionately to the city prop erty," said Domogalla. He point ed out that Salem's fringe arecs have grown tremendously, and while they contribute to a large extent to costs of local govern ment, particularly schools, he feels they have not borne their right ful share of the property tax bur den. "Properly tax assessments just have never caught up with the rapid growth," he said. ADJUSTMENTS PLANNED While adjustments will also be made this year in assessed value for Salem's downtown commercial area, Domogalla said no adjust ment is contemplated on residen tial properly within the City of Salem this year. However the increased assessment in the fringe area will have a lowering effeef on city taxes. The assessor said that notices of increased assessment are being mailed to all affected'owners. He emphasized that the notices rep present the assessed value, not the amount of tax. Pendleton Air Crash Kills Two Joyriders rtNULETON wi A light plane plunged nose-down Into a wheat field 18 miles north of here Thurs day, and its two occupants were killed. The victims were identified by Coroner .lohn Walker as Ted Chandler, .12. the pilot, and Robert Norman, 2fl, both of Toppenish, Wash. Chandler rented the single - engine plane from Pendleton Sky ways for an hour to do some pleasure flying. Mrs. John Bourne, wife of the Skyways firm operator, said Chandler first took up DeWayne Schaaeman, also of Toppenish, for a W-minnte ride, then rettveed J njebgl t& ttrB4 o o Put Hose to Annual Test property assessments has been Soviet Directs A-Halt Appeal To Legislators By TOM OCHILTREE MOSCOW Wl The Supreme Soviet Friday called on the United States Congress and the British Parliament to work for immed iate termination of nuclear weap ons tests. The Russian equivalent of a Parliament proposed establish ment of a three-power parliamen tary commission to exchange opin ions and try to work out the best way to ban tests of hydrogen and atomic bombs. As is usual in the Russian Par liament, the legislators adopted the resolution without a murmur of dissent after hearing Foreign Minister Andrei Gromyko declare the Soviet Union would continue producing atomic and hydrogen bombs and guided missiles until the Western powers agree to dis continue their tests. School Board Joins Planning Council The Salem School Board decided Thursday night to become affili ated with the Mid-Willamette Val ley Planning Council, although some directors felt that the as sessment of $4,250 against the dis trict for the first year's operation was excessive. The over-all budget for the coun cil has been fixed at $40,000, a sum which Robert Powell, chair man of the Salem Planning Com misssion, said was necessary for the proper functioning of the or ganization. OTHER AFFILIATES Other affiliates' of the council are the City of Salem, Marion and Polk Counties. Rids for four new school buses also were taken under advisement sint-e the variations in designs and equipment must be considered bc- fore contracts afe let June 4 was fixed as the time for opening bids for the enlargement of Salem Heights School. Plans for the project are being prepared by the architect, John G. Groom, who said they would be ready for con tttgteai ky nxt week, V truck ladder to check on each length's pressure capacity. The tests this week were held near the department practice tower on South 21st Street. (Capital Jour nal Photo by Jerry Claussen) BOTH OLD, NE1P 35,000 Feet Of Firehose In Workout Annual testing of 35,000 feet of firehose will be completed this week by tho Salem Fire Depart ments, Chief Bob Mills said today. The program, carried on at the practice tower area on South 21st street neor the city shops, assures that equipment will stand up in emergency use. Mills explained that old hose Is put under water pressure of 200 pounds per squaro inch to test for leaks, and 400 pounds for new hose. The department has some hose still good after 20 to 25 years, while some other hose is worn out in 10 years. He explained that some gets used more than other lengths and some becomes ex posed to heat, causing faster de terioration. Hose measuring l'A Inches di ameter now costs $1.50 to $1.75 a foot; 1',4-inch costs $1.15 to $1.35 a foot, and booster line about $1 a foot, he said. Hose is alternated on trucks ev ery 30 days and used lengths hung to dry in the tower to mako them last longer, the chief pointed out. Dixie Flag Unveiled RUTHERFORDTON, N.C. IB A 96-year-old Confederate flag made in Rutherford County was unveiled here today during Con- icdcrme Memorial Day services. Kollowing a recent policy of lim iting solicitations In the schools, the hoard rejected a request that pupils be permitted to take home to their parents literature dealing with the projected VWCA pool. SUPPORT DECLINED The directors also declined to support a petition calling for pro posed rezoning of the area occu pied by Westwood Products Co. at 560 S. 2lst St. Upon recommendation of Supt. Charles Schmidt the following res ignations were accepted: Miss Pat Slayer, North Salem High; Miss Madge Rickc. Parrish; Mrs. Edith Woodward, Liberty. Elections included: Mrs. Jannc Seeman and Mrs. Virginia Lee Hallock. Salem, elementary; Mrs. Owen J. Craft, Miss Patricia A. Deency, John Edmundsnn, Miss Carol Lee Kaufman, Max I.ylc Morris and Mrs. Doris Six. Salem, senior high; Miss Margaret Ma gone and Robert P. Moblcy, junior high; Mrs, Lillian Beck and Lee G. Wells, elementary: Mrs. Alice Hacked and Thomas B. Miles, jun ior high; Mrs, Jean Potli, senior hlga. Military Junta in Command Kojas Escapes, Whereabouts Still Unknown By DAVID BELNAP ' United Press Staff Correspondent cuijUiA. Colombia (Bv Telephone to New York UJP) President Gustavo Rojas Pinilla resigned and turned over the Colombian government to a five man military junta amid scenes of wild celebration todav. (Colombian circles in New York said they had private advices that police and soldiers in Bogota had opened fire on crowds demon strating in Bolivar Square, tha center of the city. These sources said there were some 30 casualties. The junta promptly announced it would call for and preside over popular elections to choose a president for the 1958-62 period. It was Rojas Pinilla's action in having his p up p c t legislature amend the constitution and elect him president for a second term in the lace of popular opposition that set off the present crisis. Popular indignation mounted. rapidly, and Rojas Pinilla at tempted to crush it with force. But he finally quit in the pre dawn hour today, in the face ot bank and business strikes which urorA nnpnlvTina tho ' motinn'a economy. The whereabouts of the deposed president was not clear. Various reports put him in the British West Indies, in Venezuela, and in Panama. '".'-...:., Rojas Pinilla was elected in 1954 to, a term scheduled to end Aug. 7, 1958. But Wednesday night his hand-picked puppet Assembly elected him to a second term which would have ended in 1962. There had been violent opposi tion to his dictorial moves throughout the country for mora than a week, with many persons reported killed by government forces. CHURCH ACTION ' Thursday, high prelates ot tha Church condemned the govern ment of Rojas Pinilla for "mur der" in putting down the opposi tion. The government had blamed the violence on Communists. The immediate future of tha country was not clear, but a joint civilian-military government was As soon as formation of tha junta was announced, throngs con centrated in the center of Bogota shouting, "Viva Free Colombia" end "Down with the dictator." They also shouted against mili tary rule ana cauca lor civilian control. Someone broke into the balcony of the Capitol Building, ripped two photographs of Rojas Pinilla from the wall and threw them to the crowd in tho street below. The situation came to a head when high officers of the army held a meeting at 3:30 a.m. today. Political circles said both the Con servative and Liberal parties had asked for the formation of a na tional government, dissolution of the national Assembly ana tne convocation of free elc'Jons. The military chiefs then decided on the organization of the junta to take over at this point. JVws in Brief Friday, May 10, 1957 NATIONAL Dave Beck Profits in Mortgages Revealed Sec. 1, r. 1 Ike Foreign Aid Plea Called 'Inspiring' ....Sec. 1, v. 1 v LOCAL Amateur Astronomers Scan Skies 5ec. 2, f. 1 Oregon Industrial Safety Methods Studied for Use in Formosa Sec. 2, P. ID Water Rate Schedule Sec. 1, P. STATE Ijl'KISIdlUl K PIMM Record lor Lengtn ....aeo. i, r. t Colombian Dictator Toppled by Rioting ...Sec. 1, P. 1 SPORT Senators Lose Heartbreaker Sec. i, P. 2 Desperate Bevos Fall Again; Rowland Arrives Sec. 2, P. 3 REGULAR FEATURES 'Amusements I Editorials .. , Locals .Sec. 1, P. J Sec. 1, P. 4 Sec. 1, P.J Sec. 2, P. 1 Sec. 1, P. 6. 7 Sec. 2, P. 4 Sec. 2, P. 5 ...Sec. 2, P. 7, 8, 9 Sec. 2, P. 8 Society Comics Television ... Want Ads ... Markets Dorothy Dlx . Se, 1.P.3 Crossword Puzzle -..Sec. 2, P, 4 Jtfaool ....Sec. 1. P. I