jy"''f' E-''' '" ' ' ""' "" ' " ,"'-u 1 1 1 ' 1 " " : . '" ' - "J
- CAR SMASHES LOUNGE An Ashland man
-was arrested after the stolen car he was
driving smashed into the front of the Palo
mino room lounge of the Jackson hotel last
night. The car is shown above before it was
hauled away from the building. Several pa
trons of the lounge narrowly escaped injury
as a glass brick wall toppled inward, and
mil fl -1 '
GAPING HOLE LEFT Shown above is the
front of the Palomino room of the Jackson
hotel as it looked after being smashed in
ward by a car driven by a man fleeing from
city police. The stolen car is at the extreme
peetaciiilar fiinto Chase Ends
Crash,
r, A spectacular car chase ended
! in a wreck at the Jackson hotel
and with gunfire, here last night.
A 31-year-old man was wounded
and taken into custody on -a
; grand larceny charge.
John Arthur Showalter, alias
John Arthur Dane, a transient, is
under police guard at the Com
munity hospital. He is being
treated for a flesh wound in the
calf , of his left leg. A. warrant
charging him with grand larceny
has been issued by the district
court. Bail was set at $2,500. He
will be arraigned as soon as he is
physically able, officials said
- Showalter is charged with
stealing a car from Ashland be
longing to Alden D. Powell, 281
Oak st., Ashland.
; Showalter was wounded by a
pplitfe bullet after the car crashed
into the Palomino room oi .tne
5 Jackson hotel. -Damage
Not Great
j The manager of the hotel re
ported today that interior dam
age was. not too great, although
two occupants of the lounge nar
rowly missed serious injury. The
car crashed through the outer
wall and shoved the door into a
pinball machine which struck a
corner of the bar between the
two patrons. One man had just
left a stool before the accident.
It was mashed by the pinball
machine, the manager added. No
injuries occurred, despite shatter
ing of glass bricks -on the ex
terior.
In reconstructing the cops
and robbers" chase, city police
said that state police had notified
them of the stolen . vehicle,
parked at the Jackson hotel. It
was placed under surveillance.
A man and woman were seen
entering the vehicle at about
10:20 p.m. and the car pulled
away, heading south on Central
ave.
Chase By Officer
Officer Robert Gheysen gave
chase, ' and the vehicles' turned
west on Ninth st. When he blew
the siren alongside, the stolen
1952 sedan, Showalter acceler-
Legislature OKs Memorials
For Two Partnership Dams
Salem (U.R) The Oregon
legislature today gave its final
stamp of approval on two part
s' nership power memorials and
sent them to Gov. Paul L. Pat-'
terson for signature.
A party-line vote in the Republican-dominated
Senate pass
ed memorials to Congress urg
ing immediate starts on con
struction of John Day dam on
the Columbia river, Cougar dam
. on the McKenzie and Green
Peter dam on the south Santiam.
The John Day Memorial to
Congress asks federal construc
. tion if possible and partnership
construction if full government
financing is not forthcoming.
The Cougar dam would . be ;
. t ;
ated. and turned north -on Front
st., almost tipping' over, police
On China Weakness
Chicago - OJ.R) Sen. Wil
liam F. Knowland has warned
that weakness towards China
during the Formosa crisis would
move the United States' first
line of defense back to its own
Pacific coastline.
The Senate minority leader,
speaking off the cuff to the Chi
cago Dental Society last night
said such a show of weakness
"would set off a chain reaction"
that .would end with all Asia
under Communist rule.
' "If Formosa is lost, our' na
tion's front line of defense would
move back to the shorelines of
California, Oregon and Wash
ington," he said.
"That is no place for a front
line of defense of our republic
and the free world,", the Cali
fornia Republican added.
Molotov Proposes
Formosa Conference
Paris U.R) The French
Foreign Ministry announced to
day that Soviet Foreign Minister
V. M. Molotov has proposed an
international conference on For
mosa. -
Molotov made the proposal to
the ambassadors of Britain and
India when he saw them in Mos
cow last week, a French For
eign Ministry spokesman said.
It was believed that the Chi
nese Communist government
had been consulted in advance
on the Soviet proposal.
The United States is known
to oppose any conference on
Formosa outside the frame work
of the United Nations.
built in co-operation with the
Eugene Water and Electric
Board, a public power utility.
Green Peter would feature con
struction on : a 50-50 basis by
the government and Pacific
Power and Light.. ; The power
company would pay a substan
tial part of ; the flood control
features of the project. :. ' .
The. John Day memorial was
passed by a vote of 22 to 7 and
the' Green Peter and Cougar
dam measure by a vote of 23 to
6. One senator was absent. .
Democratic speakers . who
spoke against the memorials
branded them as an attempt -to
create . a great private power
monopoly in' the northwest. - -
the door was smashed. Driver of the car,
identiifed as John Arthur Dane, alias John
Arthur Showalter, 31, Ashland, was cap
tured by police after he leaped from the car
and ran. He is under guard at Community
hospital where he was taken for treatment
of a bullet wound in his leg. . ' -
(Photo by Franklin Jones)
right beyond the wrecking truck. Portions of
the bar can be seen; through the gaping hole
left by the destruction of a glass brick wall,
just beyond the doorway which was slammed
far inward. s
(Brainerd Photo)
by Police
continued. The vehicle made an
other skidding turn onto Eighth
st. and smashed into the lounge.
The driver jumped out end
started running. . Gheysen or
dered him to halt "several
times," and when the man kept
running, fired three times with
a .38 revolver. Detective Ser
geant Lyle Perkins, who was
advancing by foot on Central
ave. towards the hotel, also or
dered him to halt and fired
twice over his head, police re
lated. The wounded man ran
down the alley beside the Crater
ian theater and hid in a stairway
in the rear of Adrienne's store.
Perkins found him there, and
ordered him to come out with
his hands up. The man replied
that he was hit and asked Per
kins not to shoot.
Woman Not Held'
Officers returned to the hotel
where they found his woman
companion, who was interro
gated and released. She told po
lice she did not know that the
car was stolen, and Showalter
told her "it belonged to his
brother."
Besides striking the front of
the lounge, the car also . hit a
parked vehicle registered to Jim
V. Jones, 25 Washington st.
Half of the stolen car was inside
the lounge when it came to rest.
Dulles Sees Infernal
Trouble Within Russia
Washington (U.R) Secre
tary of State John Foster Dulles
said today "we have signs of in
ternal trouble" within Soviet
Russia for some time.
Commenting on the shakeup
in the Soviet high command,
Dulles told a reporter:
"We have been expecting
something like this. There have
been signs of internal trouble."
He refused to elaborate. Nor
would he say whether the Krem
lin shakeup could be. interpret
ed as "good news" or "bad
news" for the free world.
Dulles talked briefly with a
reporter when he emerged from
a closed door meeting with the
House Appropriations subcom
mittee that handles funds for
the State Department. ;
Members said Dulles was
questioned at length about the
Kremlin developments. '
Chamber Executives
Pick Lebanon Man
Portland U.R) Chuck De
Foe, manager of the Lebanon
Chamber of Commerce, today
was elected president of the
Oregon Chamber Executives
Association. The Oregon and
Washington groups are holding
their annual joint meeting here.
; De Foe succeeds Don McNeil,
manager of the Jackson County
chamber.;-" - -; -
M
EDF0KD
United fress Full Leased Wire
49th Year 14 Pages
Eisenhower Asks
Federal Outlay
For New Schools
$1,120,000,000 Over
Three-Year Period
Washington U.R) President
Eisenhower asked Congress to
day to authorize a federal out
lay of $1,120,000,000 over the
next three years to help states
and local communities build
$7,000,000,000 worth of schools.
In a special message to Con
gress, he said such an "emer
gency program" is urgently
needed to relieve "serious over
crowding" of classrooms. He
said the goal is to wipe out an
estimated "deficit" of 340,000
classrooms and "give our school
children as quickly as possible
the classrooms they must have."
To Speed Construction
Mr. Eisenhower emphasized
that his four-point program of
federal aid is designated to
speed up school construction
"within the traditional frame
work of local responsibility for
our schools." He warned that
"federal aid in a form that
tends to lead to federal control
of our schools could cripple
education for freedom."
Mr. 1 Eisenhower's message
was rushed to the House and
Senate a week ahead of sched
ule in what administration of
ficials conceded was a move to
head off attempts by Demo
cratic senators to push through
a school aid program of their
own. - .. .
Reaction Favorable
Senate Republican Leader
William F. Knowland of Calif
ornia, said reaction among GOP
legislative.: leaders - was- "gener
ally favorable.''
House Republican Leader Jo
seph , W. Martin Jr., of Massa
chusetts said the President's
program "meets some of the
crucial needs so that every boy
and girl can have an education
yet does not bring about federal
control of schools.
Mr. Eisenhower said the seven
billion dollars which would be
channeled into new school con
struction under his proposals
would be "in addition to" con
struction outlays through nor
mal processes.
Four Proposals -.
Here are his four proposals:
1. Appropriation of $75,000,
000 over the next three, years
for direct federal purchase of
school construction bonds is
sued by local school districts
"which are handicapped in sell
ing bonds at a reasonable inter
est rate."
2. Creation of special school
construction agencies in each
state to build schools that
would be "leased" to local school
districts which already have
reached the legal limit of their
bonded indebtedness and there
fore cannot ' borrow . on then
own to build new schools.
Pauper School Districts
3. Federal appropriations of
$200,000,000 over the next three
years for direct grants in aid to
so-called "pauper" school dis
tricts that have so little taxable
property and local income that
they cannot qualify for new
school construction under either
of the previous two programs.
4. Appropriation q $5,000,
000 immediately as part of a
three-year total of $20,000,000
to finance long term planning
by the federal government and
the states to correct problems
confronting public education
and, particularly, obstacles to
local financing and the estab
lishment of more efficient school
districts.
Neuberger Opposes
Toll Road Financing
Washington U.R) Sen. Rich
ard L. Neuberger (D-Ore.) said
today that he and Oregon's Gov.
Paul L. Patterson were opposed
to the toll-road financing part
of President Eisenhower's $101,
000,000,000 highway program
because it "would discriminate
unfairly" against large thinly
populated states.
Oregon's junior senator said
he and the governor had ex
changed views on the toll-road
provision of the 10-year road
program drafted by the Presi
dent's advisory committee. Neu
berger said he had relayed his
and Gov. Patterson's objections
to Chairman Albert Gore (D
Tenn.) of the Senate Subcom
mittee on Roads and Highways.
MEDFORD,. OREGON, TUESDAY, FEBRUARY 8, 1955
Drop-in Donors
For Bloodmobile
Needed Until 6 p.m.
Drop-in blood donors will
be welcome until 6 p.m. today,
as the Red Cross bloodmobile
makes its regular visit. It will
be at the Elks temple.
This morning, the ' number
of those making appoint
ments io give blood was far
under the number necessary
to fill the area's quota of 300
pints.
The Junior Service league
is furnishing and serving
fruit juice, coffee and dough
nuts to donors.
The Bloodmobile will be in
Ashland , at the Elks temple
from 1 io 6 p.m. tomorrow.
Only 25 reservations had been
made up to about noon today,
with a quota of 200. The Ash
land reservation telephone
number is 7-221.
Ho Signs of Red
Interference Shown
During Evacuation
Taipeh, Formosa (U.R) -
Thousands of civilian refugees
from the Tachen Islands began
streaming aboard U. S. Navy and
Nationalist transports today with
no real signs of Communist inter
ference.
The first civilians to be em
barked in an American ship
boarded the attack transport
US"S Henrico this morning. The
Henrico was one of many attack
transports which moved in close
to the China mainland for the
operation.
The 7th fleet, its guns at the
ready, its planes filling the skies
ovejhead,4lreported -Communist
boats, mines and torpedo boats
30 to 35 miles north of Tachen,
but a briefing officer empha
sized they had made no unfriend
ly moves.
Peiping Radio threatened and
blustered but there was every in
dication Red China had grounded
its Soviet-built MIG-15 jets in the
face of the overwhelming Amer
ican naval might.
American pilots were under
orders not to fly over Commu
nist area or provoke trouble, but
they also were under orders to
shoot back and chase any Red
attackers back to the mainland.
All officers and government
officials gathered at 7:45 a.m. for
the last raising of the Nationalist
flag over the island. All stores
and offices already were closed.
Opposition Ignorable
Any signs of Communist mili
tary retalition against what Pei
ping Radio called "U. S. war
provocation" 'were so slight as to
be ignored.
A naval spokesman said two
red torpedo boats, were sighted
at Gao Tao island,'35 miles north
of Tachen, and another two at
Huei Hsu, 10 miles to the south
west. Sixty-seven Red junks escort
ed by two patrol boats also were
seen moving out of the Tai Chou
Wan river mouth 30 miles north
west of Tachen.
Unofficial reports told of sub
marines skulking in the distance
apparently keeping to of the
operation, but they stayed well
clear.
British Cease Fire
Affempfs Faltering
London (U.R) Britain's sec
ret negotiations to prevent a war
over Formosa today appeared
disturbed by Nationalist China?s
determination to hold Matsu and
Quemoy ; islands, informed
sources said.
Foreign Secretary Anthony
Eden was reported using his
Washington and Peiping con
tacts in hopes of arranging a
cease fire. United Nations
sources said Secretary-General
Dag Hammarskjold was keeping
hopes alive for a UJN.-sponsored
cease fire through new secret
dealings with Peiping.
The outlook for peace was
strengthened by the thus-far
peaceful evacuation of the Tach
en Islands and by Secretary of
State John Foster Dulles' state
ment that he doubted the Com
munists really intended to wage
war over Formosa as long as
the United States stands ready
to fight in its defense.
DOW-JONES AVERAGES
New York (U.R) Dow-Jones
final stock averages: 30 indus
trials 405.70 off 3.89; 20 rail
roads 141.72 off 1.23; 15 utilities
62.32 off 0.67; and 65 stocks
149.19 off 1.42.
United
(ma
V
" w
o
iiifiW-. m irimii -
GEORGI MALENKOV
Surprise Resignation Accepted
iioeiisx
Phoenix Police Chief E. J.
(Jim) Perry of Phoenix was sus
pended from office last night
by unanimous vote of the city
council. The council also order
ed an audit of police and court
records by a certified public ac
countant. The action was taken after a
$10 bail receipt, dated last Sept.
24, was shown the council. No
record of the bail, as forfeited
in court, could be found in an
examination by Judge Frank De
Souza or councilmen. The bail
hadf'reportedly been accepted by
Mrs. Perry, police matron, who
identified her own signature on
the receipt.
To Audit Records
The suspension was ordered
upon, motion of Councilman Leo
Bohls, with a second by Johnny
Klassen. It followed another un
animous vote to have all police
records audited since Perry as
sumed office over 2V years ago.
All police and court records
were impounded at once, and
given to Councilman Frank Lov
ett, chairman of the police com
mittee, for custody. He will ob
tain a CPA immediately to audit
the books. A special council
meeting will be called as soon
as an audit is completed, or if a
delay occurs.
No one was named police chief
in the interim.
The audit and impounding of
the books was recommended by
Medford Attorney G. W. Kell
ington, who represented sever
al private citizens. About 30 per
sons jammed the small city hall
library chambers during the dis
cussion. Petition Favors Perry
Prior to the motion for sus
pension, a petition and two let
ters were read favoring the re
tention of Perry as police chief.
The petition bore 124 signatures
of residents of the area. An ac
companying letter, signed by W.
R. Haggard and. Glen Thompson
said, in part, "less than 10 peo
ple refused to sign and we did
not find one person that would
say anything against Mr. Per
ry's character, ability as a po
lice officer, or his honesty. We
further feel that Mr. Perry has
done an outstanding job : with
the children of this community
and with his various projects,
such as the Gun Club and his
driver training program. 7 We
also feel that in his position he
is sure to occasionally 'step on
the wrong toes' and cause some
one to hold a grudge. However,
we cannot see where he has
been ' guilty of favoritism and
he tries to treat everyone with
great respect."
Another letter from Mr. An-
As
frees Full Leased Wire
Price 5c
No. 277
Council
of Peei'cs
na Smith, 120 Second st., call
ed Perry "one of the best offic
ers" the city has had, and cited
his juvenile work as "outstand
ing." .
Senate President
Sets Talk in City
Sen. Elmo E. Smith, John
Day, president5 of the Oregon
state senate, will be the featured
speaker here Friday at the Jack
son County Lincoln club's an
nual banquet, it was announced
today.
Senator Smith, a Republican,
represents Grant, Harney and
Malheur counties. : - ; . .
The , annual banquet will be
held at the Medford Elks tem
ple, Fifth st. and Central ave.
Thornton Asks Survey
Of Crime in Oregon
Salem U.R) Attorney Gen
eral Robert Y. Thornton said to
day that prostitution on an open,
commercialized basis has been
suppressed in Oregon. Rut he
said operators would resume as
soon as public attention is fo
cused elsewhere. -
Thornton, in his biennial re
port to : the governor, called
again for a crime survey to re
view and evaluate laws, ap
praise administration of law en
forcement facilities and check
the adequacy of juvenile justice
and the penal system.
Molotov Says
Leading To World War III
Moscow U.R) Soviet For
eign Minister V.. M. Molotov said
today that "the foreign policies
of the imperialists and of the
United States above all are ag
gressive and are leading to ; a
third World War."
; Molotov told the Supre Soviet
in a speech soon after Marshal
Nikolai Bulganin succeeded
Georgi Malenkov as Soviet Pre
mier, that the United States
nurses "insane notions" of re
claiming Communist countries
for capitalism."
Two Foreign Policies , ' '
. "In our time," Molotov said,
"battle is being joined between
two foreign policies: That of
peace and that of war."
He said the Soviet Union de
sires peace and decreased ten
sion and heads a Communist
movement that is on the rise
while capitalism grows weaker..
Weather
FORECAST: Cloudy with rain
through Wdnesdy. mild tem
peratures. Low; tonight 38
. 40; high Wednesday 45-48.
Temp.
Highest Yesterday , ' , 47
- Lowest this Mofrntn. 34
uuiyaiiiii licucu
iuHuineruia
Premier of Russia
Resignation Contains
Confession of Guilt
Moscow (U.R) Georgi . Mal-
enkov resigned as Premier of
Russia today and Marshal Niko
lai Bulganin was elected un
animously to succeed him.
' Bulganin was nominated for
the premiership by Nikita S.
Khrushchev at the afternoon
session of a joint meeting of the
Supreme Soviet. ,
The same body only a few
hours earlier first had set in
stunned silence and then had
unanimously accepted the sur
prise resignation of Malenkov.
TVi A Alts4-im rf TnlrYonivi tiro 0
-iic ei-vuuii . jjui5auiu vvao
almost as great a surprise as
Malenkovs resignation. Bulga
nin is a military administrator,
lately turned politician, and a
comparative newcomer to the
Soviet political aristocracy.
Had Rapid Rise
Foreign Minister V. M. Molov-
tov or Khrushchev had been
considered the most likely suc
cessors to Malenkov. : :
Bulganin became am import
ant figure in Russia after the
v,i t (rnnnn,. 3 inM yt.
gave up his job as chairman of
the State B?nk and managed the
civilian sifie of the city's , de
fenses. He rose rapidly, after the
battle was won and became a
Politburo "candidate in 1946. In
1947 he reached the peak as
vice chairman of the Council of
Ministers,- in -charge of defense.
Malenkov Apologises v
lie quit, nis resignation said,
"in interest of the motherland"
with a public apology for "my
guilt." He said he was con
vinced of his own "inexper
ienced leadership.
Malenkov's resignation and
tne election of Jbsmgamn yto suc
ceed him were the most electri
fying developments in the Soviet
Union since the death of the late
premier joser btaiin almost two
years ago. ' -
The last such comparable de
velopment was the Soviet an
nouncement July 10, 1953, of the
arrest of Lavrenti P. Beria, head
of the Soviet Secret Police, on
charges of sabotage and con
spiring to restore capitalism in
Russia.
in spite oi nis resignation, jviei- ,
enkov was expected to remain
in the government.
World Surprised
Malenkov, who became Pre- "
mier on March 6, 1953, just one
day after Stalin died, ceased to
be Premier.
The news of Malenkov's resig
nation struck with tremendous
impact.
Diplomats in the galleries
were openly startled. From all
indications, the more than 1300 .
deputies of the two houses also
were caught by surprise.
The reason eiven for the resie-
nation was his lack of experi-'
ence in directing the govern
ment. - - . , "
The chubby Soviet leader's,
statement said he accepted re
sponsibility for faulty direction
of Soviet agriculture and
stressed the importance of heavy
industry in the general develop
ment of the economy.,.
(See stories on Page 5)
U.S. Policies
Molotov said the United States
today .is "backward" politically.
He bitterly attacked American
: m
The United States, he said,
nourishes "insane notions" of
turning back toward capitalism
nations which already are well
on the road to socialism.
Such policies, he said, are,
among those leading to "a third'
World War."
First with Hydrogen Bomb
Tr i , J 41 c. " C v
that Russia was the first nation
to develop the hydrogen bomb.
He said the United States
holds no advantage at all over
the Soviet Union in the streneth
and ability to wage war.
Thiinfarnng anr ilaneo crreofml
his statement. '
; Molotov said the United States
should quit Formosa Then, he
said, there could be peace in
the Far East. - - " " -""