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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (July 11, 1946)
MM (lay's lews Br FRANK JENKINS IN tho new today, there li n ulmost SENSATIONAL irtory. In a report addressed to tlio President unit cnniireu, Julin It. jlecliiiiin, director of rcconvcr. ion, demands NKW ,Si.rtilfc8 IN r'KDKUAL Kl'KNUlNG. HE thinks the army and the mivv urn the nliices to cut imiHt deeply because they spend the must minify. 1 1 suyn: "The armed forces rcpresonl IS per cent of ALL proposed niilhiys In u 1047 budget which wim intended to totiil :)5,8(IO. (1110,0110 CIS 11ILLION, MOO mil lion dollum) but wlilrli linn risen an cntlmuti'd 10 to 15 per cent to 40 billion dollars or more." E adds thnt three-fifths of the oiitluvn of the irmy and navy nre earmarked for purposes OTHER THAN the direct pnylnu. ' feeding, clothlnu, trulnliiK mid truiiKHrlliiil of aoldleni and mili um. lie Ihliiku considerable econ omic In military expenditures ran bo achieved without hum perlim oiMTiillonit aimed at ful filling world obllKatlon, fur thering American Interests and keeping global peace. 11 certainly sounds reasonable. H E then Hilda that lew pend ing by the civilian agencies and postponement of puuuc works would help to halt the flow of government dollars Into private hands which la a sinmuly Inflationary tendency. Hut, lie points out, "tho civ Ian agencies legislative, Judi cial and executive will cost only a little more than two billion dollars, or six per cnt of total expenditures. So, If major econ omics are to come, they muat be sought elsewhere.' W 71IKN ho talka of reduction nf federa sneniling. Mr- Steclmmi is talking the language of buirtnesa and will be applaud ed by business men. Ho goes on, however, to say Hint "revival of THICK CON TltoL In the No. 1 essential In warding off costly and Irrctricv able inflation." lb- adds: "Until June 30 when OPA expired runaway inflation had been, prevented, Rut today we nix liin-utened with the loss of tho controls which wo have lined to maintain stabilization and pro tect production." There, he runs Into controver sial ground. Hut ho MAY be right. In a situation where do- ...,.iwl lur exceeds sunoly It Is a little hard to see how bushiest can run without brakes ana sun escape a crash at the bottom of the hill. THERE Is an old saying that what goes up must come down. Experience teaches in that the higher It goes the harder the bump when It hits bottom. Common sense Indicates that If prices boom too high now there will bo a bust when they come down. Controls might keep them from going too high. On tho other hand, If prlcei soar too much pcoplo mny refuse to buy, thus reducing consump tion and helping supply 'io caien up with demand. These are NAT URAL controls. OPA controls are artificial, and everyone knows by observa tion that they haven t worked any loo well. . IT'S a big question. This writer doesn t know anybody, and hasn't heard of anybody, who la flatly certain In his mind as to the answer. There are too many IKS In tho picture cither way Anyway, OPA In out at the moment and congress seemi to be in no hurry to restore It. With every day that passes. restoration of controls becomes more difficult ond more risky So it looks as if wo may havo lo und OUT by the process of trial and error paying the price for whatever mistakes wc make as wc go along. THE point of this whole story A Is that Stoelman Is one of the more reasonable of our gov ernment bureaucrats. What he ays is therefore Interesting. He Is certainly on a new tack when ho talks of the need for reduced government spending. We haven't heard much of that from Washington lately. Hot Weather Still Prevails The Klamath basin citizenry enjoyed real summer weather today but the maximum 81 de grees at 1 p. m, was far more comfortable than the 93 of Wed nesday. The weatherman gave the slate a blistering yesterday but a cool breeze was welcomed here this afternoon. More than 200 mothers and children took to Mooro park Wednesday. Most of tho visitors sought the ihado although a few hardy ones sunbathed. Swimming classes In town were appreciated by those who could get In. Over the rest of the slate, other towns suffered even more than Khimulh Fulls yesterday. Hoseburg reported 05 degrees; Medford, OB; Bend, 01. In east ern Oregon, rciullcton had a high ot 92. SZ. PH1CE FIVE CENTS Russia Asks Unification Of Germany PARIS, July 11 !!') Runsln emerged today as the champion of a reunified and self-sulficient Germany on tho basis of a policy-charting speech yesterday by Soviet Foreign Minister V. M. Molotov. Addressing hla colleagues on tho lorclgn ministers council, Molotov liatly opposed the dis memberment or ledcralization of Germany or reduction of tho rcleh to an agricultural state. Tho apcech waa the first clear cut expression of the Kremlin's attitude toward Germany ilnce the end of the wur. Some quarters here were in clined to write off the address a a Russian bid for popularity within the reich, and as a move to strengthen tho forces of Ger man communists. It was generally conceded thai Molotov, in the eyes of the aver age German, now stood for a Germany governed by Germans, and for the return of a decent standard ot living. French official quarters ex pressed dismay that the Russian policy of unllicatlon was In di rect conflict with the French proposal to separate the Hunr, the Saar and tlio itmnciand trom the remainder of the reich. Out France's foreign minister and president, Georges tlldault, won a counter-victory at home in the conference backyard. The French cabinet unani mously voted today to uphold his aland on Germany lo dale, which included a demand for interna tionalizing the Ruhr and con tributed to holding up a unified four-power Germany policy. Tho Information ministry said communist ministers voted lor the Bidault motion. It was not Immediately clear whether the Russian statement of policy would delay the ad journment of the council, tenta tively planned for this weekend. The ministers were called into session today to resume discus sions on Germany. Rent Control Move Delayed Any further action on a vol untary fair renU control In Klamath Falls was delayed yes terday by the Klamath Realty board pending outcome of the OPA and price control legisla tion now being discussed In Washington. The realtors had decided to establish a fair rents board here, asking rental property owners to volunteer for equitable control handled locally, and the plan will still be put Into operation if necessary. Dispatches from Washington Indicate that a majority of sena tors and congressmen are agreed on returning rent controls, but the rest of the Items over which OPA had Jurisdiction are hold ing up passage of any control measure. The rcaltora here feel that some rent control may be en acted by congress. Boguc Dale, president of the Realty board, said that he had rccclvod many favorable comments on the fair rents proposed here, and io far no objections to it. Service Funds By Reconversion Director WASHINGTON, July 11 (P) Reconversion Director John R. Stcclmnn today demanded new slashes In federal spending and pointed at the army and navy as the places to cut deepest. Economy may be achieved there, Stcelman told President Truman and congress, without hampering operations aimed at lulfilllng world obligations, fur thering American Interests and keeping global peace. While terming tho revival of price control the No. 1 essential In warding off "costly and Irre trievable" inflation, tho recon version boss said this action should bo coupled with lower government costs, continued high taxes and credit controls, and, If possible, a federal bud get surplus. x Less spending by tho civilian agencies and postponement of public works would help to halt the flow of government dollars Into private hands, Steolman said in his first quarterly report as director of the offlco of war mobilization and reconversion, but ho added: "If a ma lor cut In the infla tionary Impact of federal expen ditures Is to be sought, expendi ture plans of the army and novy must be re-examined in the oo0 - y ,aO KL War Over, Draft- Dodgers Come Our mi i i ' i i .-" ! 1 ?ML Four husky Gabriel brothers, who barricaded themselves In a tiny room of their parents' farm at Ontariovllle. 111.,- evading the draft for lour years, have given themselves up to the FBI, ending what was termed "one ol the most aggravated eases of evasion of the war." Appearing relieved that their self-confinement Is over, they are (left to right) Albert, 40; Frank, 29; Ernest, 23, and Henry, 28, Youngest brother, a cripple, might not have been accepted for military service, FBI said. NEA tolephoto. Area Yill Keep WRA Buildings TULELAKE, July 11 Build ings occupied during the war by the army and the war relocation authority at Camp Tulelake and Newell, will be disposed of to the best interests of the com munity and veteran settlers of this area. This announcement was made today by E. L. Stephens, super intendent of the U. S. durcau ot Reclamation and custodian for the general land office, refuting persistent rumors that all build ings will be moved to other parts of the stato. Thirty-three apartment houses formerly occupied by WRA per sonnel, will be moved out by the federal housing authority, these going to Canby, Yrcka, and Al lures, Calif. They will be moved by mid-August, it is understood. A preference list, now being compiled by the USBR, will be made public in the near future. Joe Thomas, liaison officer for the bureau, at a meeting ot the Tulelake post of the American Legion, outlined plans for dis tribution of the buildings. Thomas recently returned from Washington, D. C, where tenta tive plans for use of the build ings was drafted. Also In line for consideration will be reclamation and other government bureaus, non-profit organizations, farmers and other Individuals. The Legion post will confer next Thursday with representa tives of the federal housing au thority, expected here from San Francisco. Clayton Rudisill, re cently Installed commander of the Tulelake post, said the city of Tulelake had been asked to cooperate In working out a pro gram of relief from the present housing shortage and an answer was expected prior to the visit of the FHA authorities. Cut Asked light of the present need for anti inflationary action," The armed forces, he said, represent 45 per cent of all pro posed outlays In a 1947 bungct which was intended to total $35, 800,000,000 but which has risen an estimated 10 to IS per cent to $40,000,000,000 or more. On the other hand, the civilian agencies legislative, Judicial and executive will cost "a lit tle more than $2,000,0000,000 or 6 per cent ot total expenditures." If major economies are to come, Stcv-lmon said, they "must be sought elsewhere." Threc-lifths of tho outlays of the army and navy are earmark ed for purposes other than the direct paying, feeding, clothing, training and transporting of sol diers and sailors, the OV'MR di rector pointed out. s Stcclmnn led off his report with the announcement that production of over-the-counter consumer goods for the first half of 1046 was tho highest In cither peace or war," And until June 30 when OPA expired "runaway infla tion had been prcvontcd," Steel man said. "But today, we are threaten ed with the loss of tho controls which we have used to maintain stabilization and to protect pro duction," the report continued. KLAMATH FALLS, OREGON, THURSDAY, Beer Prices Stand Fast Beer prices in Klamath Falls will remain stable despite the death of OPA, according to lo cal distributors. The last raise granted in brewery prices was on June 25, when the OPA gave several ups on both beer and ale. H. J. Charles, president ot the U. S. Brewers Foundation, stntes that no raises are antici pated on bottled or draught beer. .Urging, them to id in holding the .line' of prices. Charles-- wired-torower.- recom mending "that no increase be made in the price of beer be yond the increase granted by OPA. We should do our part to prevent inflation." If the price line it held by suppliers to brewers, by trans portation .lines, beer distribu tors and retailers there need be no Increase in the price ot beer, according to Charles. Success Looms For Heat Deal The Consumers Heating com pany today was completing ne gotiations for the purchase of the Klamath Heating company's physical plant and heat was vir tually assured the several hun dred customers who have faced prospects of a cold winter. D. O. Hood, Portland, owner of the heating plant is here representing interests of Hood brothers. "We have received an accep tance of our offer of $55,000, from the newly organized group," Hood said today. "Ne gotiations are to be completed immediately." Hood referred to the offer made by the heating company this spring to the consumers who Just this week announced $100,000 had been subscribed to purchase the plant and to do some Improvements. ' E. B. Hall, representing the executive committee of the con sumers, said yesterday that ad ditional money must be raised in order that all Improvements be made before the plant was in full use this winter. Some $30,000 is needed, part of which has been tentatively subscribed, Hall said. It is necessary to or der another large boiler Imme diately, and to add additional trucks, meters and other equip ment. Early next week It is the in tention of consumers who have subscribed to stock to meet for the purpose of electing a board of directors and subsequent of ficers. Pageant Association Opens Headquarters General headquarters for the Centennial association have now been established at Fremont jun ior high school. Tho office will be open daily between the hours of 8:30 a. m. and 5 p. m. People wishing to contact association members may go to the school or call 5264. The office, which was tem porarily located in the ch.amb.er of commerce, has been estab lished as headquarters tor the Centennial celebration, August 22, 23 and 24, which is com memorating the opening ot the South Emigrant road into this area In 1846. Registrations for the pageant may be made through this office. JULY 11, I94S (Telephone To Face Music Hi City May Vote On Play Center Steps toward enlarging and improving the city's recreational set-up were planned today at a meeting of the city recreation committee, which voted to recommend to the city that a measure providing for $295,000 for construction of a swimming pool and recreation center be placed on the November ballot. -The recreation center Is to be .ecu .uructed on a recentlypur- chaied piece of land in the 1900 block on Main, acquired from Will Humphrey at a price of $12,000. $1000 ot which Hum phrey donated to the city. The committee added to its recommendation that a one and one half mill levy be placed on the ballot in the November elec tion for the purpose of main taining, equipping and develop ing present recreational facilities and for acquiring additional rec reation projects as they may be needed. Another move made by the committee was a recommenda tion to the city that it make use of the swimming pool, rifle range and gymnasium along with other recreational facilities at the Ma rine Barracks in conjunction with the state vocational school which is being considered for establishment at the barracks. Howard Pcrrin, local architect displayed rough preliminary plans of the proposed city rec reation center, from which the $295,000 cost estimate was made, Representatives of the YMCA sat in on the meeting and ap proved the committee s action, Mihailovic Trial Reaches Climax BELGRADE, July 11 OP) The trial of Gen. Draja Mihailo vic moved swiftly toward its climax today following the' for mer Yugoslav war minister's final plea for his life, in wmch he voiced "an absolute hatred for the Germans" and denied charges that he had collaborated with them. In a four-hour address yester day to the war crimes tribunal before which he and 23 co-defendants are on trial, Mihailovic reviewed his career as leader of the Chetniks and asked the court "to be fair in its evaluation of my work." "I do not say that I made no mistakes, but everyone was mak ing mistakes," Mihailovic de clared as he pictured for the tri bunal the "whirlpool of events and difficulties" with which he was confronted. Baseball Scores NATIONAL R. H. E. Brooklyn 0 3 0 Chicago 15 0 Hatten and Anderson; Schmitz and McCullough. R. H. E. Philadelphia 4 8 0 Pittsburgh 1 3 0 Rowe and Seminick; Strinrc vlch, Hallctt (7), Roe (9) and Baker. AMERICAN R. H. E. Detroit 2 10 ' 0 Boston 3 13 0 Hutchinson and Tcbbetts, Swift (9); Hughson and H. Wag ner, (10 innings.) R. II. E. St. Louis 4 2 0 Philadelphia 3 7 1 Potter and Helf, Manruso (7); Marchildou, Savage (8) and Rosar. 47 WEATHER NEWS lmj II, ISK Mil, lislf ! 1 Mia M PraelallalUa laat fi bears M Stream ytar U tfata ll.t1 K,ril 114 Lail M" ' rartcail: MaiM- elaar laaar, ' aar. 1111) Number 10868 'E' Award To Batavia Draws Fire WASHINGTON, July 11 (IP) Chairman Mead (D-N.Y.) of the senate war investigating com mittee today termed "Indefensi ble the award of an army-navy "E" to Batavia Metal Products, Inc. Mead comtuvnted after the committee heard testimony that Rep. May (D-Ky.) had taken up with war department officials possible award of the prized plume to the company, one of a group of munitions makers whose war profits are now un der investigation. Milton H. Pettit, chairman of the ordnance committee on "E" awards, testified there were short cuts and speedy action unprecedented" in handing out the pennant and acknowl edged that he had noted on Batavia s files: "What price political expedi ency." Ordnance Protests Pettit testified that Batavia never would have been given the award if it had been left up to district ordnance officers (the normal procedure) who had pro tested the company's manpower handling, its production effi ciency and its prices. He said that it was his "un derstanding" that the speed and unusual proceeding by which it was granted was due to May's intercession. Mead remarked that the award had a "derogatory effect upon the producers of America" and said that it constituted a "blemish" upon the army-navy use of the morale and produc tion stimulating device. May Conversation The committee received a telephone transcription depict ing. May, as protesting a,, produc tion cutback ordered lor a "friend of mine." ' The transcript was placed be fore the senate war investiga tion committee as it sought de tails from Brig. Gen. Roswell Bardy, wartime chief of the ordnance ammunition division, on the extent of May's activi ties in behalf of certain muni tions makers. Offered as evidence by Com mittee Counsel George Meader, it covered a telephone conversa tion between May and Hardy on May. 7, 1945, on a "cutback" hi an eight-inch shell contract. In it, May, chairman of the house military committee, was quoted as saying at the outset that he had Just seen "a friend of mine" Henry Garsson, one of the promoters of 19 closely linked corporations now under investigation. Klamath Tribe Paid For Pine Members of the Klamath In dian tribe received $1,000,000, for pine cutting last year accord ing to Morgan Pryse, director of the United States Indian service, today. Pryse said the "western In dian is prospering" and that funds have accumulated rapidly for Indians on reservations in the four northwest states and Cali fornia, from sale of timber, ren tal of farm land and cattle rais ing. Umatillas collect extensive rentals from wheat lands in Ore gon and Idaho, and even the Pi utes and Wascoes in Nevada, among the poorest of tribes, have incomes from cattle raising, Pryse said. CO Politicians Stumped On Successor To Hillman WASHINGTON, July 11 (P Sidney I oilman's place as chair man of the CIO political action committee yawned wide open to day in the middle of the na tion's primary elections. CIO leaders said Hillman's death leaves a gap in the Con gress of Industrial Organization that will be hard to fill. Few had any definite idea as to a logical successor. . Walter Reuther, president of the CiO auto workers, told re porters here: "There is only one man qualified to take Sidney Hillman's place, and that man is CIO President Phil Murray. But he certainly has burdens enough already." Murray himself, the man who will appoint Hillman's successor, said: "I have given no thought to Reporters who visited Mur ray's office found him saddened by the loss of his old associate, and apparently unwilling even to think of the future. Murray Barkley Works For Shovdovn On OPA Draff WASHINGTON, July 11 (AV-President Truman declared today that "every day that passes" without a price control law increases the danger of inflation. WASHINGTON, July 11 UP A move to require that OPA authorize increases in rents was rejected 98 to 14 today as the senate drove toward a final decision on legislation to revive price controls. The vote rejected an amendment by Senator Hawkes (R-N.J.) to: Permit an immediate 5 per cent rent Increase and additional 9 per cent raises on next November 30 and March 31. Forbid federal rent controls in states which already have them. Democratic Leader Barkley pushed for a showdown on the OPA bill loaded with bans on price controls for meat, poultry, milk, gasoline, cottonseed, soybeans and their products in the face of a threat that sen-. ate consideration will be shift-1 ed tomorrow to house-approved measures to discard President Truman's government reorgan ization plans. Still Cheerful Cheerful despite rapid set backs in the form of hands-off amendments, covering meats, milk, butter, salad oils and gas oline the Kentuckian told re porters he still is hopeful of getting a price control revival measure that the president could sign. "We got a better bill than either the senate or ' house WASHINGTON, July 11 (JPt Senator Morse (R-Ort.) voted today against a proposal calling for three increases of 9 per cent each in maximum rents during the next nine months under OPA legisla tion. The amendment lost, 58 to 14. passed last time from a confer ence," Barkley said. "Maybe we can still improve on that this time." But another administration lieutenant who may not be identified further said President Truman would balk again un less some way is found to over turn senate actions barring fu ture price ceilings on many items important in the cost of living. Across the capitol. Rep. Woll cott of Michigan, senior repub lican on the house banking com mittee, told reDOrters "it ap- Dears that only rent control will remain" when congress and the president finish their battle over OPA, House May Act He said a motion in the house to concur in all senate actions might prevail. Major tests facing the senate today include an attempt by Senator Taft (R-Ohio) to rein sert his price-boosting profit provision which drew chief White House fire in the veto message and several proposals dealing with rent controls that expired along with OPA. Following up its 49 to 26 vote Tuesday to keep meat free of OPA ceilings under any re vival, the chamber voted these additional touch-not provisions yesterday and last night: 1. Milk and all other dairy products, an amendment spon sored by Senator Wherry (R Neb.) and approved 51 to 27. 2. Cottonseed, soy beans and their products, by Senator East land (D-Miss.), 42 to 34. 3. Petroleum and its products as long as supply exceeds do mestic demand, by Senator Moore (R-Okla.), 40 to 39. The only administration vic tory during the two days of OPA mauling came when the chamber rejected, 32 to 40, an amendment offered by Senator Reed (R-Kas.) to exempt grains and their by-products. California Balks At Auto Prices SACRAMENTO. Calif.. July 11 (p) A state request lor bids on supplying new automobiles brought a quotation of $2350 to $2500 for Ford, tnevroiet ana Plymouth sedans. State Pur chasing Agent J. Fred Mispley said today. The senate is not pur chasing vehicles at tnose prices, he added. and Hillman were on the origi- nal committee of eight who founded the CIO ten years ago. Hillman. 59. died of a heart ailment yesterday at his summer home on Long Island. Though few at the CIO had any prediction as to the next ClO-PAC chairman, several names were being discussed as possibilities. One guess was that Murray himself would take over the job for a time at least in actcti tion to his other duties as CIO head and president of the CIO Stcciworkers union. Some thought that R. J. Thorn, as, defeated by Reuther for the UAW presidency last March, had a chance for the job. He it secretary-treasurer of PAC. Others considered it more likely that one of Hillman's three assistant PAC chairmen might be elevated. These are the full-time men who carry out the policies of the eight-man PAC itself. They are Thomas Burns, Tiliord Dudley and Jack Kroll 3 Generals Found Guilty In Massacre DACHAU. Germanv. Julv 11 W-Seventy-three Waffen SS veterans, including three gen erals, were found guilty by an American military court today of the slaughter of 900 Ameri can war prisoners and Belgian civilians in the Battle of the Bu'ge. The president of the court, speaking after an hour's delib eration, announced all 73 de fendants were "found guilty of the particulars and charges." The defendants included Gen- Josef (Sepp) Dietrich, com mander of the 6th panzer army and survivor of Hitler's original beer hall putsch in nearby Munich; Lt. Gen. Hermann Priess, commander of the 1st SS panzer corps; Brig. Gen- Frit. Kraemer, chief of staff of the 6th panzer army. Peiper Chief Target The burden of prosecution evidence was directed against Col. Joachim Peiper, daredevil commander of "Task Force Peiper," whose men participat ed in the massacre of unarmed American prisoners at Mal medy. , . " After the verHirt nf tho rnmencan officers serving as Judges was made known, de fense counsel began presenting evidence that might be consid ered as extenuating when sen- lence is passed,, possibly early next week. Spectators were generally surprised that all 73 defendants had been convicted as a unit. It was the largest mass conviction yet handed down by American justice against accused German war criminals. - Peiper. like his fellow pris oners, took the court's an nouncement stoically. An Amer ican liAutannnf mlnnal Ul Tt McCown, flew the Atlantic to testify in his defense, telling uuw a uumuer 01 American cap tives were released by Peiper when the Germans were thrown back in the Ardennes counter offensive. Air Inaugural Plans Drawn Final plans for United Air Lir.es inaugural flight into Klamath Falls were discussed here today by James L. Murphy Jr., San Francisco, executive as sistant. United Air Lines, and August 1, at 10:51 a. m.. will see the arrival of the big Mainliner 180 at the municipal airport. Murphy said the first plane in will be a twin engine Doug las DC3, a 21 passenger ship, and that W. R. Thigpen of the Seattle office, an executive as sistant, will be the speaker at inaugural ceremonies at the air port. The aviation committee of the Klamath County cham ber of commerce is planning a Kcremuuy irom me community standpoint and Murphy con gratulated the chamber group on their activities. Full details of all ceremonies will be given the public as soon as plans are worked out. W. T. Mclntyre, station manager, is arranging United's plans. He is attending a station managers' meeting in Denver, Colo., this week. Murphy said today that Klam ath Falls was one of five new stops on United's Pacific coast run, and that all were being in augurated the same day, Thurs day, August 1. In discussing the reservation set-up, Murphy said that announcement would be forthcoming. In the pre-war years, he said. United sold only 65 out of every 100 seats, but traffic demands were such now that 10 reservations arc sought for every single available scat. United Air Lines has run into the same sort of production and equipment problems of other In dustries but the Mainliner 180 should handle the trunk traffic until spring. . . . Hennessy Nominated WASHINGTON, July 11 (ff) Frank J. Hennessy was nomi nated today by President Tru man as United States attor ney for Northern California. V