Herald and news., December 18, 1946, Page 1, Image 1

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Mo
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Dai's lews
By mANK JENKINS
THE new "council of economic
advisers" crested by the m
iloyment act panned eurly litis
rmir makes IU flmt report to the
president lodny.
It In extraordinarily Interest
tag. You'd better read it.
a
THE report asserts that ttie
' lons-tlme outlook for lobe
nd production In "more tnin
ordinarily favorable."
There MAY be a temporary
"dip" In 1947, the report says,
but It add: "Courauooiis and
sensible action by business and
labor CAN hold this recession
to modorote proportions' and
could avert It entirely,
a a a
THE report goci on:
"After 1947'a poaitible reces
?,ilon, broad, basic conditions suit
Kent that It will be EASY to
have some years of hliih pro
duction, employment and pur
chaitliiir power without tho dla-
play of any extraordinary eco
nomic statesmanship by leaders
or industry, laoor, farming ana
finance."
. It then oautlona:
"But a policy of DRIFTING
In those years, or of being con
tent with leas than nationwide
high production could bring on
a subsequent period of SERIOUS
unemployment, unaerprouueuon
and want."
nrHAT Is to say (In the opinion
of these economist) we con
follow the "let cr rip policy
(or, rather, lark of policy) that
we followed after the last war
WITH ABOUT THE SAME RE
SULTS. We can have little period of
the same kind of screwball boom
we've had for the past year,
based upon price Inflation and
Insufficient production.
This screwball boom (which
we had after the last war and
are having now) will be followed
by a temporary bust.
The temporary bust will be
followed (If we Just let 'cr rip,
with no thought of the future)
by several years of high produc
tion, high employment, high pur
chasing power and MOUNTING
SPECULATION based upon the
natural human desire to get
rich quick NOW and the dovll
lake the future.
THEN, tho report suggests,
1 there will be another bust, like
that of 1920 only, It stands to
reason, it will be bigger and
mora awesome.
ALL this, the economists In
dlcate. Is based on letting
things rip. without Intelligent
thinking for the future.
BUT, they add, there Is now
time enough "to chart a course
of action which will sidestep that
peril and not only raise the na
tional prosperity to new high
levels but MAINTAIN those
levels with degree of stability
which has not characterized the
earlier exploratory and specu
lative decades of our industrial
life."
What these big words mean Is
that ir we go about It intelligent
ly NOW we have a good chance
to AVOID the boom-and-bust
sequence that has plagued us
from the very beginnings of our
industrial life.
. - . ... a .
"THE economists then put the
cap sheaf on their thinking.
They add:
"Thlt promise of a long term
future free from the swings of
boom and depression must be
bawd on a foundation of FREE
COMPETITIVE ENTERPRISE,
with the government in a sup
'porting and spark-plugging role.
' 7e suggest that the impediments
to prosperity in the near future
are of the sort that must be
worked out, WITHOUT direct
government Intervention,
through the practical wisdom of
management and labor, farmers
and financiers."
They specifically reject the
Idea, prevalent during the past
decade and a half, that "govern
ment can so manipulate its tax
ing and spending as to relieve
l(:nllaa4 ria 14, Calama I)
Job, Production Outlook
Brightens,
By STERLING T, GREEN
WASHINGTON, Dec. 18 (P)
Tho president's council of econ
omic advisers today predicted a
"more than ordinarily favor
able" outlook for Jobs and pro
duction for "some years ahead."
A temporary "dip" may come
In 1!)47, the board of three
economists told President Tru
man, but "courageous and sen
sible'' notion by business and
labor can hold tho recession to
"moderate, proportions, If not
avert It."
The report was the first sub
mitted by the high economic ad
visory body created by the em
ployment act of 1946, and headed
by Dr. Edwin G. Nourse. chief
of the Brookings Institution
agricultural economics division.
The council is instructed to
report on economic trends and
advise on legislative and ex
ecutive steps awhlch will contri
bute to "maximum employment,
production, and purchasing pow
er." i
After next year's possible re--cession,
tho report said, "Broad
basic conditions suggest that It
will be easy to have some years
of high production, employment,
and purchasing powor without
the display of any extraordinary
PRICE riVK CEMT1 so &V
Policeman
Accused Of
Jail Beating
Verne L. Wagner, big plain-
clot'.ics officer ol the Klamath
Kails city police department, waa
secretly Indicted by the grand
jury lute yesterday for assault,
armed with a dangerous weapon,
and spent last night In the coun
ty Jail. A bene.! warrant was
handed Deputy Sheriff Jack
Franvy shortly after 5 p. m., and
Wagner entered the lall an hour
later.
His ball was set at $3000 cash
or property and at noon today
Dean Hall and Roscoe G. Lilly
posted tit bond and Wagner was
released.
The officer Is specifically
charged with striking Robert
Farris over the bead with his
pistol while Farris was being
questioned at the police station
on April 24. This arrest was
apparently a direct result of in
structions given to the grand
Jury to prooe roports of police
brutality here. The instructions
were given by Circuit Judge
uavia k. vanaenDcrg.
Tho indictment of the police
officer was among three secret
bills brought In by the Jury late
yesterday. Witnesses whose
names appear on the indictment
are stale foiice uniccr Bin Col
bert. Police Chief Orvllle Hamil
ton, Assistant Chief Leigh Ack-
erinsn, Police Judge Harold
Francy, Mayor Ed Ostendorf,
Farris, Harold Cartln, Indian
Officer Willis Pankey and Louis
Craver of the police commis
sion. '
Wagner was on duty yesterday
and was arrested at the police
station, After ' the 43-year-old
officer was booked at the Jail an
effort was made last night to
raise ills 13000 bond. Judge
Vandcnberg stayed in his office
from 7 p. m. until 10:30 to re
ceive the bond, but said that no
bondsmen appeared.
After he was arrested the
plainclothes officer told a Her
ald and News reporter that he
(Caailaaaa aa rasa i, vaiama J
Bilbo Case
Continues
WASHINGTON. Dec. 18 (Pi-
Edward P. Terry, former secre
tory to Senator Bilbo (D-Miss.);
testified today that A. B. Friend
told him last April that it iie
told what he knew about his
former boss he would be killed
He said that Friend, a war
contractor and Bilbo's campaign
manager in last summer s elec
tion, delivered the warning to
him while entertaining Terry
and his wile at dinner in a Mis
sissippi hotel.
He quoted Friend as saying:
"Ed. if you take any part in
this campaign or tell what you
know on Senator Bilbo you'll be
killed."
- Terry, testifying at a senate
war contracts investigation, said
that later in the evening Mrs.
Terry asked Friend If Bilbo was
gilng to kill her husband.
no saia no. lerrv rccoumea
there were two men- coins to
ao me jod.
Say Advisors
economic statesmanship by lead
ers of Industry, labor, farming
and finance,"
The council rejected two tra
ditional views of business cycles:
First, that which it termed the
"spartan" theory, in which busi
nessmen accept recurrent swings
fatalistically and try merely to
predict them and ride them out.
Secondly, the Roman "broad
end circuses" view that govern
ment can so manipulate its tax
ing and spending as to relieve
the citizens of all responsibility.
"We believe the great body of
American thinking on economic
matters runs toward a more bal
anced middle view," the council
asserted,
It viewed government as
functioning as a "stimulating
and guiding element in the econ
omy.1' :
Dr. Nourse Is a former econo
mist of the Brookings institu
tion, Washington. The other
council members are Leon Key
serling, vice chairman, former
general counsel of the national
housing agency, and John D.
Clark, former corporation execu
tive and dean of the school of
business at the University of
Nebraska,-
.ATH FALLS,
This picture shows, the drawing ef the first Bomber In to
left, Helton Reed chairman of the homestead exSmlaine board,
numbers. Olnay Rudd, Tulelake
Klamath reclamation project,
name is called. He was the
10 Dead In
Bus Wreck
NEWBERRY, S. C. Dec. 18
(P) Ten pupils and the driver
of a school bus were killed today
when tie bus and a southbound
Southern Railway passenger
train collided at a grade cross
ing on the outskirts of Silver-
street, a village seven miles
southwest of Newberry.
Eleven other school children
were injured in- the -accident.
They were brought to Newberry
County hospital for treatment.
Attendants said all were in criti
cal condition, i ,
Mrs. H. N. Wallace of the Mc-
Swain funeral home, where five
of the dead were brought, said
ambulance drivers told her the
train struck the bus on the side
and dragged it for half a mile
down the tracks.
Some bodies were carried
along on the cowcatcher of the
engine while others were scat
tered beside the track, according
to her information.
Mrs. Wallace said the crash
occurred on a straight stretch of
road. It was theorized, she add
ed, that the bus driver was not
expecting tie train because it
was reported running late.
Richard Sanders was the
driver.
Valley Flood
Shows Drop
PORTLAND. Ore.. Dec. 18 ()
The Willamette river was back
in its banks today except in the
lower valley whore it was drop-
ling Din sun 2.H feet above
lood stage at Portland.
The waters mvlrled nvr low-
lying wharves and warehouse
floors in Portland harbor, but
damage was negligible. The
principal effect in the lower val
ley was the halting of work at
Oregon City paper mills and
closing of some secondary high
ways. The level had dropped to 19.4
feet at Albany, slightly below
flood stage, and to 20 feet, the
bank-full level, at Salem, the
weather bureau reported on its
8 am. reading today.
The Columbia at Vancouver
had fallen one-tenth of a foot
below Its yesterday's crest and
was at 18.6 feet.
The Coast highway north of
Florence remained closed by a
slide but all other major routes
In the state were open.
OREGON, WEDNESDAY, DECEMBER It, IMS
: :
Suspense Rules As First.
World War X rateran. is drawing the capsule from the Jar.
is seated at right. Inset shows
first Klamath basin man whose
Stassen Tosses Hat In
Ring For 1948 Nomination
(. '.;
Harold E, Stassen
Grand Jury
Indictments
' Recessing again late yesterday
afternoon, the Klamath county
grand Jury returned one open in
dictment and three secret in
dictments, and asked to be called
back into session soon after the
first of the year for further in
vestigations. '
The one open indictment was
against Carl Richard Shuter, for
malicious destruction of public
property with bond set at $1500.1John w, Bricker'of Ohio; Govs.
wtio ui me secret inaicunenvs
charged Verne L. Wagner, city
police . officer, with assault,
armnd with a dangerous weapon.
Wagner was arrested last night
and released on $3000 bond
this morning.
The jurors brought in a re
port covering every jail in the
county, and only one the coun-
(ContlnaeS an Pasa 14, Calaroa S)
Rood Conditions
Unchanged Today
SALEM, Dec. 18 (flV-Oregon
highway conditions were little
changed today, with mountain
roads reported icy, and the Ore
gon coast, Wilsonvllle Ferry,
Slletz, Alsea, Little Nestucca,
Woodburn-Sandy and Hlllsboro
Silverton routes' still closed by
slides or high water.
The U. S. weather bureau told
the highway commission that
snow showers throughout the
state are possible Thursday. .
(Telephone
'Bv''Grand-'Jirv
Homestead Number Is
i
u.--: mm
CD
W
"a.
day's, Tulelake hoinetlead draw tag at the? Klamath armory. At
turaino the eraak on the ncestaile containing the capsule-encased
Ernest Lindsay, assistant county'
number was drawn.
WASHINGTON, Dec. 18 (JP
Harold E. Stassen ripped the lid
off the 1948 republican presi
dential nomination battle by de
claring his candidacy on an im
mediate platform of changing
the Wagner labor relations act
The 39-year-old three-time
governor of Minnesota and for
mer navy captain added that he
is out to steer the GOP along a
"truly liberal path."
One of his first efforts, Stas
sen told a news conference yes
terday, will be directed toward
amending the Wagner act to
prescribe a "set of unfair prac
tices" for labor such as "mass
picketing." Practices now spelled
out as unfair in this law apply
only to management. ...
Stassen said he wants to "bal
ance up this collective bargain
ing." His announcement, unexpected
only because of its timing so long
before the 1948 nominating con
vention, came - after Senators
Vandenberg of Michigan and
Taft of Ohio had told reporters
they are not candidates. Each,
however, left the way open for
any campaigns in their behalf.
Stassen, as the first to throw
his hat into . the ring, served
notice oh the party's old guard
that it can look for a battle
somewhat similar to that' waged
in 1940 by the late Wendell L.
Wilkie. Many Wilkie supporters
now are in the Stassen camp..
Besides Taft and Vandenberg.
others who have been mentioned
as contenders for the nomination
include Governor Thomas E.
Dewey of New York, the 1944
standard bearer: Senator-elect
Earl Warren of California and
Edward Martin of Pennsylvania;
Senator-elect Raymond E. Bald
win of Connecticut, and Gen.
Dwight D. Eisenhower.
Eureka Area
Shaken By Quake
EUREKA. Calif.. Dec. 18 (Pi
The heaviest earthquake in 14
years s.iook this coastal area of
northern California at 6:21 a. m.
today. Light fixtures swayed
and dishes rattled but no damage
was reportedf
Joseph Bognuda, In charge of
the University of California seis
mograph at Ferndale, said the
quake centerecWitf Cape Mendo
cino. It lasted sajre than five
seconds and approached damage
point intensity.
The last heavy tremor in this
area, in 1932, caused extensive
damage,
WEATHER
M.I. (Dm. 1 ..... S Mia. .....11
rrielallallaa lart St tnrl .St
siruai mm a '' -t.it
Lart rur 4.77 Naraul 1.11
r.-Mi! rir ur. laairhi
ass Taanaar. CaaUaaaS aalS.
1111)
Number 10113
Drawn
Jim
0
JiJ
Layton Stephens.' superintendent.
agent, raising his hand as his
'
SEATTLE, TJec 18 WV
Smoke rising in "puffs or balls"
from the scrambled rock-and-timber
country around. Ashford,
55 miles southeast of Tacoma,
prompted the coast guard to
shift to that area today in its
search for a marine corps trans
port plane missing since Decem
ber 10 with 32 men aboard.
Lt Comdr. R. W. Finley, han
dling the search for the coast
guard, said 'his aerial party saw
the smoke yesterday. State Pa
trol Chief Herbert Alego, how
ever, said after a check of the
same general area yesterday
afternoon that his low-flying
plane found only loggers burn
ing "slash" from felled trees.
Navy and army planes also
were cooperating in the search
and an army helicopter was to
be flown here Friday from
March field, Calif. The navy re
tained an interest in the Cen-trali-Chehalis
region, farther to
the south, where the early inves
tigation was centered.
Ground crews and radio
trucks also were shifted by Com
mander Finley in an effort to set
up a triangular "fix" on the rug
ged Ashford region where three
persons reported sighting a
bright fire yesterday morning.
One man said the blaze flared
"as though it were being fed by
gasoline."
Radio equipped crews will be
placed at Silver lake near Ohop,
at Porcupine ridge and at Ohop
lookout. Finley said, to direct a
cub plane piloted by Capt. W. L.
Littrell of an air service rescue
unit.
The smoke puffs were seen, he
said, approximately at the inter
section o! lines drawn between
Bald mountain and Alder, and
between Silver lake and Cougar
mountain.
iff
Air Search
Area Widens
fir shopping .
l J DAYS LIFT J
E. M. Lindsay
First EUdmdt'h
Basin Winner
In an atmosphere of sustained suspense, the drawing for tha
first land to be opened for World War II veterans proceeded
smoothly and rapidly today at tha Klamath armory, and by
early afternoon the first 86 names had been drawn Eighty-si .
farms In tha Tulelake area art to be awarded, and if these 86
veterans pass tha second screening test, they will get trie fertile
land homesteads.
Robert L. Smith of Banks, Ore., was holder of the first num
ber drawn, and if he finally qualifies he will get first choice
among the homestead units. First drawn name of veteran pres
ent was that of Ernest M. Lindsay, assistant county agent, and
the only woman's name drawn was that of Eleanor Jane Bolesta,
Everett, Wash. There are only six women among the 1305 vet- '
erans participating in the drawing.
The picking of capsule-encased numbers from a churn-like .
device fashioned from a pickle jar and a few scraps of steel
climaxed proceedings that began with a program of music and -speechmaking.
Here are names in order drawn:
Drawing Appl. . " , j
Number
No. 1
Number
No. 128
So. 1938
No. 1078
No. 984
No. 1418
No. 502
No. 533
No. 698
No. 1668
No. 281
No. 862
No. 57
No. 1268
No. 802
No. 1547
No. 1327
No. 1534
No. 931
No. 254
No. 948
No. 348
No. 1188
No. 255
No. 1584
No. 322
No. 1460
No. 1117
No. 730
No. 1692
No. 1850
No. 1091
No. 1772
No. 496
No. 815 .
No. 1165
No. 1295
No. 1778
No. 113
No. 601
N& 411
"N6. 29
No. 954
No. 1254
No. 1082
No. 1289
No. 1158
No. 921
No. 641
No. 691
No. 1946
No. 356
No. 88
. No. 109
No. 1140
No. 1511
No. 1898
No. 1906
No. 1310
No. 1993
No. 300
No. 1094
No. 1647
No. 223
No. 1882
No. 481
No. 1506
No.
No.
No.
No.
No.
No.
No.
No.
No. 10
No. 11
No. 12
No. 13
No. 14
No. 15
No. 16
No. 17
No. 18
No. 19
No. 20
No. 21
No. 22
No. 23
No. 24
No. 25
No. 26
No. 27
No. 28
No. 29
No. 30
No. 31
No. 32
No. 33
No. 34
No. 35
No. 36
No. 37
No. 38
No. 39
Nd. 40
No: 41
No: 42
No. 43
No. 44
No. 45
No. 46
No. 47
No. 48
No. 49
No. 50
No. 51
No. 52
No. 53
No. 54
No. 55
No. 56
No. 57
No. 58
No. 59
No. 60
No. 61
No. 62
No. 63
No. 64
No. 65
No. 66
No. 67 No. 1499
No. 68 No. 1111
No. 69
No. 70
No. 71
No. 72
No. 73
No. 74
No. 75
No. 1544
No. 585
No. 1522
No. 237
No. 1392
N. 1402
No. 1368
No. 849
No. 1907
No. 185
No. 1528
No. 1718
No. 1426
No. 464
No. 1229
No. 1608
No. 1552
No. 76
No. 77
No. 78
No. 79
No. 80
No. 81
No. 82
No. 83
No. 84
No. 85
No. 86
No. 1086
After drawing the first 86.
was drawn. Alternates will move up for consideration if any of
the first 86 are disqualified in the final screening, ,
The center of activity at the armory was in the prizefight ring,
with the spectators banked about the .squared circle as well as
in the balconies. r v., '" -')'-.; ,. -r, -
Klamath Union high school band ' provided music for - the
occasion, and gave a preliminary concert while the crowd
gathered. Many of the qualified applicants, with their families,
arrived early, and sat in a special section reserved for them.
George Conner,-chairman of the civic committee on arrange
ments, opened the program with a short statement, followed by
talks by Mayor Ed Ostendorf of Klamath Falls and Mayor Ralph
Fawcett of Tulelake.
The program then went into a Mutual network broadcast
with Dave Hoss of KFJI acting as master of ceremonies. 1 , ,
Nelson Reed, chairman of the homestead examining board,
made the first talk, pointing out the difficult task of the board.
He said that good land is scarce, and deserving veterans are
myriad. The land given away in this drawing, he said, is fertile,
already tried, and offers a great opportunity. He pointed out
that the veterans whose numbers are drawn will be re-checked
before final awards. , ,
Other members of the board were then Introduced, including
Layton Stephens, Fred McMurphey,' Lockey McLeod. Robert
Norris, another member, was not present. Tenbrook Williamson,
the reclamation official in special charge of the drawing, was
introduced. v
Lawrence Carr, head of the veterans bureau of California,
spoke as representative of Gov. Earl Warren, and W. C. Ryan,
head of state institutions, was present to represent Gov. Earl
Snell of Oregon. - Col.' Kenneth R. Dyer represented General
Omar Bradley of the veterans administration. ,
' Others who spoke were Howard Dayton, commander of dis
trict No. 2 of the Legion in California; R. W. Kraus, assistant
chief of staff, VFW of California; Walter Horning, representing
the U. S. land office; Ray Best, district engineer, USBR, and
Olney Rudd, who drew the first capsule. -
Name Address
Robert L. Smith, Banks, Ore.
Gewin McCracken, Arlington, Va.
Miles J. Jakes. Portland, Ore.
Ermine Leslie Walter, Alsea, Ore.
Benjamin E. Hamlin, Canby, Ore.
Paul R. Wagner, Boardman, Ore..
Robert E. Barrows, Eugene, Ore.
Paul E. Christy. Eugene, Ore. "
Keith S. Buckingham, Salem, Ore.
Donald L. Oman, Mt, View, Calif.
Jesa M. Prosser. Alturas, Calif.
Wm. M. Crawford. Shedd, Ore.
John P. O'Sullivan, San Francisco ; .
Edward A. King, Eagleville, Calif.
Ernest M. Lindsay, Klamath Falls
Shirley A. Congdon, Klamath Falls
Tom J. Rink, Klamath Falls
Oliver E. Bryant, Myrtle Creek, Ore.
Elmer Robert Metz, Wellington, Kan.
Robt G. Solterbeckv Payette, Ida.
Harry H. Hundley, Maun, Ore.
Wm. P. Barks. Tulelake, Calif. ,
Garvin H. Kirby, San Francisco
Glen E. Darrow, Vina, Calif.
Bert G. Buckingham, Fresno, Calif. "
Kenneth H. Duncan, Malin, Ore.
John S. Wynn, Corvailis, Ore.
Marceil Wallaert, Estacada, Ore.
Larry Ferrel, Rocky Point, Ore.
Vernon Elwood McVey, Parker, Ariz.
Wm. D. Hamilton, Tulelake, Calif.
Everett Lee Lynam, Brothers, Ore.
James G. Stearns, Lapine, Ore.
Richard L. Fuller, Red Bluff, Calif. :
Robert L. Heckman, Chiloquin, Ore.
Frank J. Sullivan, Klamath Falls
Lester J. Toler, Grants Pass, Ore.. f.: -George
A. Smith, Prosser, Wash.
Robt. T. iHirschback Toppenislv Wash,
Jack Wallace Taylor Alsea, Ore. .
Roy A. Hodges, Bonanza. Ore.
Harlan G. Meyer, Outlook, Wash.
Royal E. Bossen. Portland, Ore.
Walter E. Johnson, San Francisco
Stanley Bradbury, Tulelake, Calif.
Franklin W. Elzner, Malin, Ore. .
John F. Byron, Brockway, Ore. ,
James A. Bell, Dunsmuir, Calif .
Forrest W. Kennington, Afton, Wyo.
Frederick B. Lehman, Beaverton, Ore. -John
M. Bettendorf, Alturas, Calif.
Walter M. Hulse, LaHabra, Calif. . .
John A. Irving, Roseburg, Ore.." N .
Herbert Halstead, Junction City, Ore.
Edward A. Sens, Hillsboro, Ore.
Tbeophile J. Godlewski, San Francisco
James D. McAndie, Portland, Ore.
Eleanor Jane Bolesta, Everett, Wash. ,
Lowell C. Kenyon, San Mateo, Calif.
Brett D. Law, Merced, Calif.
Fred A. Robison, Tulelake, Calif,
Thomas W. Chatburn Jr., Merrill, Ore.
Robert H. Lillard, Klamath Falls
Paul L. Rogers, Medford, Ore.
Jesse S. Walter, Yamhill, Ore.
Frank L. Howard, Grants Pass, Ore.
Merle E. Woodley, Merrill, Ore.
Jack C. Mace, Medford, Ore.
Phillip Krizo, Klamath Falls - .i .
Dale E. Sprout, Tulelake, Calif.
Robert E. Watson, Springfield, Ore.
Andrew J. Naylor, Tulelake, Calif.
Charles W. Edwards, Condon, Ore.
George S. McCracken, Eugene, Ore.
Don E. Hurlburt, Burns, Ore.
Lawrence W. Hartley, Tulelake, Calif.
Sheldon W. Lewis, Rio Dell, Calif.
Max W. Fleming, Beaver City, Neb.
Robert F. Anderson, Klamath Falls
Ralph E. Saylor, Echo, Ore. ,
William V. Santana, San Jose, Calif.
Herbert J. Schworz, Salem, Ore.
Robert R. Heiney, Tulelake, Calif.
John S. Spike, Echo, Ore.
John E. Sisemore, Fort Klamath, Ore.
William E. Macy. Lakeside. Calif.
the same number of alternates
4