mm
MM.
Pickets
Used To
Portland
Washington (U.R) Racket
eers backed by the Teamsters
Union used picket lines to try to
monopolize Oregon pinball ma
chines and sew up profits of
$250,000 a year, a gambler testi
fied today.
James B. Elkins, Portland
gambler and racketeer, told the
Senate Labor Rackets Commit
tee that Teamsters Union busi
ness agents would insist that
owners of taverns and other pin
oball "locations" use only ma
chines bearing'the stamp of the
teamsters.
If they refused, the union
threw picket lines around their
places, cutting off deliveries and
hurting their trade.
There were these other de
velopments: Earlier, Portland City Com
missioner Stanley W. Earl testi
fied the teamsters fought his re
election because he rejected its
demand that he vote to legalize
pinball machines. Earl said
Clyde C. Crosby, teamsters or
ganizer for Oregon, warned him
'"that I either supported pinball;
or I would have political opposi
tion." Refuiei To Testify
Frank Malloy, Portland
Teamsters' Union official ac
cused of closing down the Mt.
Hood Cafe because it was using
nonunion pinball machines, in
voked the Fifth Amendment.
Committee Chairman John L.
McClellan (D-Ark.) described
Malloy as the "strong arm" man
for the union. McClellan in
ttructed committee counsel "to
have the staff immediately pre
pare a rpsolution of contempt'"
against - Malloy. Aides said it
probably will take four or five
days to prepare the legal docu
ment which would require com
mittee approval and a vote of
the Senate itself.
Elkins, a veteran of the pin
ball business, testified that a ma
chine in a good location could
take In as much as S200 a day.
He said there were nearly 2.000
machines in Portland. They had
been outlawed but were still
operating while the law was con
tested in court.
The grim, gray-haired wit
ness, testifying against his ri
vals for the third successive day.
Slid he became a silent partner
in the Acme Amusement Co.,
which was set up by:
Joseph P. McLaughlin. Seat
tle gambler who he said was
sent by West Coast teamster
boss Frank W. Brewster to or
ganize Portland's vice and gamb
ling. Veral P. (Budge) Wright, a
pinball operator.
Fred Elkins, the witness' bro
ther and partner.
Herman Walter,.Wright's part
ner. Another silent partner in
Acme, he said, was Thomas E.
MalontK. another Seattle gamb
ler and close friend of Brewster.
Labels on Machines
Elkins testified that McLaugh
lin and Maloney. when they ar
rived as emissaries of Teamster
Union leaders to take over the
city's gambling, first asked him
to head the pinball firm they
planned to set up. But Elkins
said he refused because he had
leased his route 37 locations
to another operator, Stanley
Terry. Therefore McLaughlin
and Fred Elkins recruited
9 Wriit "to be the front man."
Elkins said he was present at
a later meeting with McLaugh
a lin and Wright when "Budge
was told he had final authority
on anything concerning p i n
balls and punchboards. He had
the backing of the teamsters in
getting equipment. Budge was
offered the distributorship of
Bailey machines, out of Chicago-"
"He (McLaughlin) said it
Cvould work the lame as in oth
erowns." Elkins said. "They'd
picket. Budge could have any
location he wanted. Clyde Cros
bv (teamsters organizer for Ore
ajri) would send a man around
from the teamsters and would
tell the owner of the tavern or
inn he'd have -to get his pin
balls it unless they had a un
ion sticker." .
If the owner cfused. the un
ion would and did picket
his business, Elkins said.
Took fest Locations
Only Acme's machines had
union "stickers. Elkins said. He
testified that McLaughlin plan
ned to keep the rest of the city's
20-ci pinball operators out of
the tirm until Wright got all the
best locations, then let in a few
Claimed
Enforce
Racket
who would buy equipment from
Wright.
Elkins testified that McLaugh
lin also sent Crosby, the state
teamster organizer, to persuade
the mayor and City Commission
to legalize pinball machines.
Elkins said McLaughlin had
ideas of spreading Acme's union
enforced pinball monopoly
throughout the state.
"The take "would have been
fantastic ... a quarter of a mil
lion a year," he said.
Horace A. Crouch, operator of
the Mt. Hood Cafe in Portland
testified that Malloy ordered
him to remove two of Terry's
pinball machines in twq days or
be picketed.
"I said you can't picket me.
I belong to the Culinary Work
ers' Union, said Crouch.
Business Closed Down
But two days later he found
pickets in front of his cafe. His
customers, mainly union men,
would not enter. Teamsters
would not deliver supplies.
Crouch said Malloy told him:
With pickets around the Mt.
Hood Cafe, not one patron en
tered. Crouch said. He held out
for a while but had to close, and
had to wait three months to re
open.
He said a representative of
Acme came to see him and said
Acme's were union machines
from Acme at last.
Malloy said he is under two
indictments in Portland, one
count of extortion as a result of
Mt. Hood Cafe picketing, ayd
one of conspiracy.
Invoking the Fifth Amend
ment's protection against self
incrimination, Malloy refused to
say who ordered the pickets
around the Mt. Hood Cafe. At
first he even refused to say
whether he heard Crouch's testi
mony about him a few minutes
earlier.
Little Information
Malloy gave the committee lit
tle - more information than his
name and that he had been with
the Teamsters' , Union for 25
years.
Although Brewster and other
teamster officials have been
cited by the Senate for contempt
of the Senate Investigations Sub
committee, Malloy became the
first witness to test the wrath of
the special Rackets Committee.
Elkins testified Wednesday
that ' Brewster once threatened
him with sudden death. The com
mittee plans to question Brew
ster later.
Commissioner Earl told the
committee that Crosby told him
I It was the late John J.-Sweeney,
I former teamster organizer in
Oregon, who ordered a teamsters
fight against him unless he sup
ported legalization of pinball
machines.
He Got Opposition
Earl said he talked with
Crosby May 18, 1955. The next
day, he voted in City Council
against considering a letter from
Crosby asking the council to le
galize pinball machines.
"From then on I got the op
position of the Teamsters Union,
their newspapers and others al
lied with them the coin ma
chine men and tavern oper
ators," Earl said.
The city commissioner, a for
mer executive secretary of the
Oregon CIO, said he once favor
ed pinball machines but changed
his mind during a fight over
their legality when he heard a
woman testify her husband lost
his week's paycheck playing the
devices.
He said the city banned coin
cperated machines in 1951 but
the operators fought the case in
court, then removed the coin
slots. The city countered by ban
ning all pinball machines of any
sort.
Ballot Proposal Beaten
Earl said Crosby later got on
the ballot a proposal to repeal
the ordinance against pinball
machines. It was defeated by 40
000 votes.
He said the Teamsters Union
ook no interest in pinball ma
chines until early 1955. Accord
ing to earlier testimony, this was
at the beainning of the term of
William M. Langley, who was
elected district attorney with
teamster and racketeer backing.
Earl' said the teamsters had
ciganized the 100-odd employees
of the pinball industry and "had
to deliver" by making the ma
chines legal, but "just didn't
have three votes" the number
lequired to pass anything in City
Council.
Reorganization
Bill for Schools
Passed by House
Duncan Sees Need
For Appeal Clause
Salem U.R) The comprehen
sive school reorganization bill
passed the Oregon House 36 to
10 today after a 75 minute de
bate. Rep. Allen Tom, Rufus, said
the bill would simplify the law
by making fewer types of school
districts and would strengthen
local districts by putting chil
dren from the 1st and 12th
grades under one administration.
He added that it also would
reduce the cost of education
somewhat by providing for con
solidation of transportation, pur
chasing and other features.
Would Study Entire Picture
Reorganization would be ac
complished by a county commit
tee of nine school voters who
would study the entire county
education picture before sub
mitting a consolidation plan for
approval of the state board of
education. An election would
'then be held.
Tom pointed out that there
was no compulsion provision in
the bill. He said that if the nine
member committee decided no
reorganization was necessary,
they would not have to re
organize. Most debate over the bill cen
tered on legal technicalities.
Rep. Robert Duncan, Medford,
said provision should be made in
the bill for staying reorganiza
tion while appgal could be made
to the courts. Rep. George Lay
man, Newberg, opposed the bill
on grounds that populous areas
could reach out and gobble up
small districts against the wishes
of rural people.
Rep. Joe Rogers, Independ
ence, chairman of the House
Education Committee, said the
comprehensive bill was the best
reorganization bill he had seen
since 1940. He said it provided
ample protection for small dist
r'cts. In answer to a protest that the
state would set up standards for
the new administrative district,
Rogers said a bill defining what
standards the board could set up
was now before his committee
and would be voted on by the
Legislature.
DOW-JONES AVERAGES
New York (U.R) Dow-Jones
final stock averages: 30 indus
trials 464.62, off 1.64; 20 rail
roads 141.04, unchanged; 15 util
ities 70.40, off 0.13, and ' 65
stocks 164.64, off 0.39. Sales to
day were about 1,620,000 shares
compared with 1,620,000 shares
Wednesday.
r The Dalles iU.R) Ernest R.
Carpenter, 26-year-old service
man stationed at Vancouver,
Wash., was killed here Wednes
day night.
Weather
FORECAST: Variable filch
cloudiness through Friday.
Low tonight 40. High Friday
63.
Temp.
HiehfRt Yesterday fil
Lowest this Morning 17
Prec. to 4:30 a.m. Today .01
Our Skies Tonight
Sunrise . .. 6:49 a.m.
Sunset 6:00 p.m.
The Moon rises Friday 6:27 a.m.
and will be in conjunction with
the Sun (New Moon) 8:12 a.m.
PROMINENT STARS
The Pleiades, in the
west 9:27 p.m.
VISIBLE PLANETS
Mars, below the Pleiades.
Jupiter, rises , 7:49 p.m.
Saturn, rises 2:13 a.m.
"My Death Has Certainly Been Full
Of Ups and Downs"
51st Year
Medford
United Press Full Leased Wire
30 Pages
Six Utilitiy Firms
Of 'Brainwashing'
Booklet Termed
Effort to Wreck
Power Program
Publication Given
To Douglas McKay
Washington (U.R) House
investigators accused six utility
firms today of trying to "brain
wash" Interior Department of
ficials in an effort to wreck the
federal power program.
A House Government Opera
tions subcommittee called for an
investigation of efforts by pri
vate power companiees to "in
fluence" the administration,
Congress and state governments.
Inaccurate Information
The subcommittee charged
that the utilities prepared and
gave the department in semi
anonymous form a booklet of
"so-called factual information"
which actually comprised a "pot
pourri of professional private
power propaganda."
It said the pamphlet contain
ed "inaccurate, incomplete, dis
torted and otherwise deceptive
information which could only
have been calculated to mislead
the officials to whom it was di
rected . . ." - . - -
The Democratic - controlled
subcommittee considered the
subject behind closed doors
Wednesday. No announcement
was made, except that the re-,
port had been approved. The
report was not formally re
leased. Although the subcommittee
vote was not disclosed, it seem
ed likelv 'that the minority Re
publicans would file a dissenting
report.
The report concerned a book
let titled "The Federal Power
Program: Its Background
Growth and Consequences."
This was given to then Secretary
of Interior Douglas McKay in
1953, shortly after he took office,
and was listed in the Interior
Department library as a book
let of "factual information," the
report said.
Vague Recital
The report said the publisher
was not identified, except for a
"vague recital" of sponsorship
by unidentified Rocky Mountain
power companies.
Actually, the subcommittee
said its investigation showed
the compaies were Arizona Pub
lic Service company. Public Ser
vice Company of Colorado, Mon
tana Power company, Utah Pow
er and Light company, and the
Idaho Power company. Re
search,! art and publishing was
done by Ebasco Service, Inc., a
subsidiary of Electric Bond and
Share company, the report said.
Washington (U.R) President
Eisenhower will not hold a- news
conference this wek. .
MEDFORD, OREGON, THURSDAY, FEBRUARY 28, 1957
DONATE TREE Landscaping of Medford's
new Jefferson school started last week, and
members of Cub Scout Pack 5, wanting to do
their share, financed a tree from Pack funds.
At a ceremony Tuesday afternoon members
of the pack helped plant the European white
birch by putting in a shovelful of dirt each.,
Representing the eight dens in Pack 5 were,
left to right, Terry Presenti, Douglas Wolf,
Kenneth Phipps, Rodger Wiley, Gary Vaughn,
Porter Maintains Dominican
Gangsters Operating in U.S.;
Charges Bring
Washington (U.R) Rep.
Charles O. Porter (D-Ore.),
charged today that the Domini
can Republic is operating a "Chi
cago gangster network" in this
country to liquidate its enemies.
He said in a House speech that
strongman Rafael Trujillo's re
gime was. directly responsible
for the disappearance of both
Jesus De Galindez, a Columbia
university professor, and Gerald
L. Murphy, young Eugene, Ore.,
flier.
Emergency Precautions . .
He said there is strong evi
dence that Murphy, reported to
have piloted the plane that
spirited Galindez "out of New
York, was murdered because he
knew too much.
Supporters of both sides plan
ned mass demonstrations on the
capitol plaza- in praise of and
in protest against Porter's
speech. Capitol police took em
Water Rates Increase
For East Side Users
Medford residents on the east
side of town will be the first to
pay increased city water fates
as a result of the recent annexa
tion of the Kenwood-Grandview
area to Medford, according to
Robert Lee, city water superin
tendent. Lee said east side customers
paying on a flat rate basis will
receive water bills Friday show
ing the increase. The new rates,
he said, are effctive April 1.
The bills will show the March
rate, and the increased rates for
April. Flat rate customers re
ceive bills every two months, in
advance.
Water users in west Medford
paying on a flat rate basis will
receive water bills April 1, ac
cording, to Lee, and be charged
the higher rates for April and
May. Residents charged on a
meter basis will not be billed for
the increased rates until May 1,
Lee said.
;The water superintendent said
most increases will be 25 cents
per month for customers on a
flat rate service with 3A or one
inch connections.
Range of Rates
Lee pointed out water-rate in
creases will range from 15 cents
for fs-inch metered connections
in residential and commercial
classifications to S2.50 for a four-
inch metered service. Most four-
inch meter services are in major
Accused
Attempts
.! nihil Jti iJt$ri4mf
wiiwmii .wm r ri i n'.iiimi .e f i i "
ergency precautions to head off I
possible trouble.
A group of 115 members of
the Dominican Cultural Society,
traveling in three buses, came
here from New York to picket
Porter with signs saying "Viva
Trujillo."
The congressman's office said
another group, made up of ex
iled Dominicans, planned to
parade a casket across the plaza
as a symbol of what Porter call
ed "foul play ... in the Murphy
case."
Porter, who has dismissed the
Dominican Government's ex
planation of Murphy's disappear
ance as a "cock and bull story,"
said that at least seven "stark
contradictions leap out from the
pages" of the official document.
The more likely explanation, he
said, was that De La Maza was
ordered to kill Murphy and was
then "liquidated."
commercial concerns, he said.
Average water-rate increase
will be 18 cents per water con
nection per month, Lee said. He
added since there are 26 differ
ent sizes and classes of service,
the increases will vary with the
type of service, some more than
1 18 cents, some less.
He emphasized the increases
do not mean more revenue will
be available to the water de
partment. The additional funds
will be used to cover added ex
penses to the department from
annexation, he said.
Lee explained two-thirds of,fir . in the
the revenue from the water-rate
increases is budgeted to retire
bonded indebtedness of the two
districts, which is $151,000.
The remaining one-third is to
finance additional maintenance
costs in' the new area and cover
losses resulting from reduced
water-rates for Kenwood-Grandview
residents, who will now
pay lower city rates.
California Man Fined
In Municipal Court
Robert Jean Watkins, Cres
cent City, Calif., was fined $100
in municipal court recently and
had his driver's license suspend
ed for 90 days.
He pleaded guilty to charges
of driving while under the in-
fluence of intoxicating liquor.
ce 10c
NE
United Press Full Leased Wim
No. 292
Larry Young, Michael Kenyon and Eddie
Calloway. Also on hand for the ceremony
was Superintendent of Schools Leonard B.
Mayfield, center, R. E. Wicker, maintenance
superviosor at Jefferson, holding the tree,
and Cubmaster of Pack 5, Ward Lampkin,
right. Principal K. A. Hulburt, not pictured,
received the tree on behalf of Jefferson
school.
- The Dominicans claim that
Murphy was shoved off a cliff
into shark-infested waters dur
ing a fight with Octavio De La
Maza, a Dominican pilot. They
said De La Maza confessed kill
ing Murphy and hanged himself
in his jail cell because of "re
morse.. Porter said if there had been
bad blood between Murphy and
De La Maza. the two would not
have been "drinking rum togeth
er near the cliff where Murphy
disappeared as the Dominican
pilot claimed in his "suicide
note."
His investigation, he said,
showed that Dominican prison
ers are "stripped of all their
posessions," and it would have
been impossible for De La Maza
to get pencil and paper to write
the note. He also wondered
where the pilot got the mos
quito netting he was supposed
to have used in hanging himself.
"Moreover," Porter said, "re
morse as a motive for the sui
cide is nothing short of ridicu
lous." The Congressman said the Do
minican Republic's callousness
"demands action" and called for
U. S. economic sanctions.
King Added to Family For
Pear Blossom Festival Here
The royal family of the an
nual Pear Blossom Festival has
been expanded to include a
king, Jay Pierce, Festival presi
dent, has announced.
The decision to include a king
was made on a recommendation
of a special committee which
basic' planning for the Festival
since it started four years ago.
Selection of a king will be
on the same basis as selection
for the queen, Pierce said. Bob
Boyer, chairman of the special
committee, said letters of ex
planation have been sent to
firms, clubs and organizations
in Jackson county which may
be interested in entering a con
testant. Scheduled April 27
The Festival is scheduled
April 27. - - ' '
Regular meetings of volun
teers serving on the planning
committee are held each Wed
nesday morning at the Holland
hotel. Organizations wishing to
participate in planning addition
al special events have been ask
ed to send representatives to the
Officials Drift
Final Touches To
Historic Pact
Agreement Details
Not Disclosed
Washington U.R) Israeli and
American officials were to meet
here today to put the final
touches on a historic agreement
for Israel to withdraw its troops
from Egyptian territory.
High diplomatic authorities
said Wednesday night that Is
rael had agreed with the United
States and ''ranee on a formula
for Israeli troop withdrawal
that the Jewish nation feels will
protect its borders and shipping.
Details of the agreement were
not disclosed. Formal announce
ment of the historic accord was
expected "this week end" pos
sibly Friday either at the Unit
ed Nations in New York or here.
Actual Israeli troop with
drawal from the Gaza Strip and
Gulf pf Aqaba coast regions of
Egypt are expected to begin soon
after the announcement, diplo
matic sources said.
Eban Sees Break
Israeli Ambassador Abba
Eban, whose constant shuttling
back and forth between Israel,
New York and Washington
helped forge the accord, told the
United Press:
"I think we've broken
through." Diplomats said further
discussions between Israeli and
U.S. officials today are neces
sary to "tie up loose ends" and
put the agreement in "proper,
legal language."
If Israel does withdraw from
remaining Egyptian territory it
will be credited as a victory for
American diplomacy. President
Eisenhower and Secretary of
State John Foster Dulles have
devoted much of their time re
cently to forging a compromise
that would induce Israel to pull
out.
Congressional leaders of both
parties also will claim a share of
the credit' for insisting the ad
ministration wilhold support for
punitive measures against Israel
in favor of keeping the door of
diplomatic negotiation open.
French Give Assistance
French Premier Guy Mollet
and Foreign Minister Christian
Pineau, here for official confer
ences with Mr. Eisenhower and
Dulles, also joined in the final
negotiations that led to the troop
withdrawal accord.
While terms of the settlement
were not immediately disclosed,
it was assumed they include
some elaboration of this coun
try's offer to support freedom of
navigation in the Gulf of Aqaba,
and to push within the United
Nations for guarantees against
Egyptian raids on Israel from
the Gaza Strip.
A U.S. "middle way" resolu
tion calling on the United Na
tions to take over the Gaza and
Aqaba areas after Israel pulls
out has been held up at U.N.
headquarters awaiting develop
ments here.
Astoria Girl Moved
To Multnomah Home
Astoria (U.R) Fourteen-year-old
Carol Ann Wagner was
moved from Astoria to the Mult
nomah county juvenile home in
Portland today pending disposi
tion of an attempted homicide
charge against her.
The Clatsop county juvenile
court ordered the child trans
ferred to Portland after hearing
a petition charging her with at
tempting to kill her father by
putting lye in his cocoa.
meetings. Pierce said.
Pierce said Festival officials
believe the addition of a few
events each year would allow
an orderly growth of the Fes
tival without becoming a finan
cial burden on any one segment
of the community. Costs are
kept to a minimum each year
by enlisting volunteer help and
contributed materials, he said.
Act as Liason
The retail merchants commit
tee of the Jackson County Cham
ber of Commmerce has agreed
to act as liason with businessmen
in order to solicit funds to under
write nominal operating costs.
Pierce said. Solicitation of mem
bers of the pear industry will
be handled by a representative
of the Jackson County Fruit
Growers League.
Although no specific appeal
for funds will be made to other
segments of the community,
Pierce said, the committee en
couraged anyone interested in
the Festival to make contribu
tions. They may be submitted
to the Festival in care of the
Jackson County Chamber of
Commerce, he said.