Statesman Journal from Salem, Oregon • Page 1

"VDODD OOD OOO OOOO CD ED CDtt OXf CT ODDC)vPQi Cotton Speculators Inquiry Points to Senator's Spouse li atomai Sfie(t)) ef Vw rapt Sen. Thomas Denies Knowledge of Wife's Financial Activities, Edith Silent PAGES NUU.TY SEVENTH YEAB 22 Tli Oregon Statesman Salem Oregon. Sunday, lanuary 11, 1948 Prico 5c WASHINGTON. Jan. lO-JAy-Ustlng of an -Edith Thomas" as a speculator In cotton futures prompted Senator Elmer Thomas (D-Okla) today to disclaim knowledge of what his wife does with her money, but he volunteered that he had invested in income producing, commodities.

The question of whether Mrs. Thomas had engaged in specu i -1 Feller, Spaniel Pup, Not Yet White-House Broken Jews Ask Arms Sent To Judea ASBURY PARK, Jan. 10-V)-The Jewish agency for Palestine said tonight explosives seized near Asbury Park Thursday were "legally procured" and were awaiting "legitimate shipment" to Palestine when discovered. Meanwhile the last of a 199-ton consignment of war surplus explosives which police said were -7 Charges Increased I For Salem Service; Toll Rates Reduced Increased telephone rates in nearly 100 Oregon cities ana-effective as of January 10 under an order of the public utilities commission Saturday allowing $1,560,000 more annual revenue for the Pacific Telephone and Telegraph company. i The order was signed by Public Utilities Commissioner IAltr- Probability that Pacific Telephone and Telegraph company may soon apply for another rate Increase was Indicated In word received here frem F.

D. Tellwright, vice president and general manager for Oregon. His message said that, without opportunity to study the order In detail, perusal "Indicates that the rate relief granted Is not adequate to enable the company to tto the Job the public Is demanding. If these rates prove to be inadequate we will have alternative other than to reapply at the earliest practicable date for rates that will enable as to do the job the public needs. No.

243 9 of a prolonged hearing in which annual increase of- $2249,000. River Drops Below Flood Stage at Salem The same Willamette river that flooded Salem with a 21 A crest last Friday was flowing quietly at about 19 feet one foot below flood stage early -today, 'but three Marion county ferries and several roads still remain on! th casualty list. 4 County Commissioner Boy Rice reported Saturday hat; the) Wheatland, Buena Vista and In dependence ferries are all out of operation because of high water on their approach roads. Receding waters will soon put them back in operation, he Indicated. The; Salem-Buena Vista road is still Closed because a 90-foot bridge near Sidney school was dislodged by the flood.

The road will remain closed until repairs can be made on the bridge and several sections of the highway which were washed out, Essen road, near Mt. Angel, is also closed, Rice said, but will reopen Monday if waters recede) sufficiently. pong's Landinff road near Keizer was opened WASHINGTON. Jan. It -Feller." the Ceeker Spaniel pap given te President Truman, leeks dejected aa he sits beside his shipping crate.

Instead ef living la the White Hesse the pap has been boarding with the President' physician. Gen. Wallace IL Graham. To Receive Training in Doctor's Home WASHINGTON, Jan. MHJPh "Feller" the cocker spaniel intended as a White House mascot, hasn't made the grade yet.

The young pup was a Christmas gif tto President Truman, but Brig. Gen. Wallace H. Graham, the White House physician, got the job of taking care of him temporarily. Now Gen.

Graham's children have become attached to the pup and don't look forward to the day when he may be transferred permanently from their home to the White House grounds. But that day apparently la- not Mihai Calls Off Romance with Princess; Politics Gets Blame INDBD 1651 'Potatoes for Peace' Drive Nets $3,000 Salem's "potatoes for peace" drive for the Northwest Christmas ship closed Saturday, with a higher figure than was anticipated a week ago but still short of the goal of a carload of dehydrated potatoes. Chairman Harry B. Johnson of the local commit tee said accounts will be closed Monday and arrangements completed for shipping all items collected. In addition to the cash on hand, which will purchase about three- quarters of a carload of potatoes, several donations of produce were received, as well as some cash earmarked for food such as milk.

Forty duffle bags of clothing have already been shipped in, and more is ready. Johnson expresed the committee's deep appreciation for the re sponse of Salem residents to the campaign, and especially to the "excellent work In the past week" by the schools, whose contribution totaled about $250. The committee will meet Monday at 4:30 p. m. in Elfstrom's store to complete transactions.

Natural Gas Firm Speeds Plan for Line PORTLAND, Jan. lO-GTV-The Oregonian quoted a Northwest Natural Gas company official today as saying his company was going forward with plans for a $78,000,000 pipeline to bring nat ural gas from Alberta, Canada, to the Pacific northwest. Richard B. Hand. New York, vice president of the company.

wrote the newspaper that his firm was making arrangements for pub lic financing, and negotiating with Alberta producing companies with gas reserves. The plans, however. Hand said, all hinge on Canada's granting permission to export the natural gas. He said his firm's engineers spent most of last summer in Alberta and reported adequate gas there to supply both Alberta and the proposed pipe line for at least a quarter-century. The proposed pipeline would be 24 inches in diameter, he said, and probably run across Crow's Nest pass to Spokane, and then either to Seattle or to Portland with branches back to Seattle and Ta-coma.

Riverview Girl Wins Trip East ALBANY, Jan. 10 Loraine Prokrop, 17-year-old Jefferson, high school girl, whose home is in the Riverview community, Linn county, was one of two state winners in the Oregon Wool Growers "make it yourself with wool" dress contest. Caroline Za-jac, 16, Grant high school, Portland, is the second winner and both girls will make a trip to Salt Lake City for the national competition. Miss Prokrop's blue dress won her a trip to the 4-H chib congress in Chicago by winning the Oregon State fair 4-H club style revue last September. Elaine Guggiesburg of Lebanon won the Linn county 4-H club news writing award of the Lebanon Express, it was announced here today by H.

John Hansen. Linn club agent. The award includes 4-H club summer school scholarship to Oregon State college. Passengers Transferred rrom iusian eei TOKYO, Sunday, Jan. 11 -JP)-All passengers, originally reported at 780, have been transferred to "other Russian craft" from the heavily listing Russian ship Dvi-na off the east coast of Hokkaido, the distressed ship radioed early today.

The message specified that no further assistance was needed from United States craft. The Dvina said she had been taken in tow by a Soviet destroyer. Weather Max. 4S 47 71 34 Min. da Prertp.

RllMI Portland San Francisco Chicago New York 40 .00 33 trace 22 feet at mid- Willamette river 19 night. FORECAST (from U.S. weather bureau. McNirr field. Salem): Partly cloudy today, tonight and Monday with, scattered light ram showers.

Highest) temperatures today 44, low tonight LAUSANNE, Switzerland, Jan. Q-(JP)-Kn aid to former King Mihai of Romania said today Mihsi's expected marriage to Princess Anne of Bourbon-Parma is off, at least for the immediate future. The 24-year-old princess interrupted her journey from Copen- iWDCDQCl After tlx months of hearings and meditation, the public utilities commissioner. George H. Flagg.

has isxued his order in the rate case of the Pacific Telephone and Telegraph Co. A expected. It carries approval of increased charges for mot type of telephone service. In Salem the increases for exchange service are: $1.25 a month for individual business phone. 75c for individual residence phone, 50c for two-party line phone and 25c for four-party residence service.

On toll service there readjustment rather than Increase of charges. The estimated increase In company gross will be about two-thirds of what it petitioned for. and the estimated rate of return will be 5.5 per cent Commissioner Flagg states that Increases approved are less than those granted In Washington and California where the company operates but defends his po-sition by saying that earnings here have previously been in higher ratio. This Is the first big rate cae handled by the department for many years. One is impressed with how ponderous the proceeding is.

and how technical. Flagg himself notes the difficulties in his accompanying statement, increased, he says, by the interrelationship of Pacific with its parent America! Tel and Tel and the latter's manufacturing subsidiary. Western Electric. One can't help but wonder whether the prolonged hearings were of much value and if in the end the problem didn't become one for the commissioner's staff to figure out more or less Independently of transcribed testimony. News reports of reduced earnings and cut dividends of telephone companies showed a basis for the request for higher rates, but with the company officials declining to predict the earnings trend of the future the rate order, In spite of all the expert figuring can be nothing more than an Intelligent guess.

Commissioner Flagg has done what he thinks Is fair both ways. For the public there is nothing to do but accept the commissioner's verdict and hope the company will not have to come back a few months hence, asking for a second helping. Districts Plan School Budget Meets Monday All non-flnt class school districts in Marion county will hold public hearing Monday night on the 1948-49 budget. Meetings will be held starting at p.m. in the various 1 uses.

Agnes Booth. Marion school superintendent and secretary of the rural school board, said Saturday. This is a change from hearings on budgets in previous years because of the revision in the Oregon school law which puts- all but first class district budgets under the direction of a county rural thool board. Notices of the various budget hearings have been posted in all school districts and members of the various school boards understand the regulations which apply for their respective districts, Mrs. Booth said Saturday.

Only first class districts in the county are Salem, Silverton and Woouburn. Senator Morse To Back Cordon PORTLAND. Jan. lCMfV Senator Wayne L. Morse promised today to support the reelection bid of his Oregon colleague.

Sen. Guy Cordon. Though the two are often diametrically opposed on national issues. Morse declared himself "very much pleased" that Cordon was running again. Morse said the two work "as a cooperative team on all issues affecting Oregon and the Pacific Northwest." Animal Crackers By WARREN GOODRICH a "Bui beore I could fe er Ae acts or Id lAe was grtnd- earmarked for the Jewish forcee-i in the holy land, was accounted for at the army's Seneca ordnance depot at Romulus.

N.Y. The Jewish agency statement, issued in New York, said "the Jewish agency for Palestine has the responsibilities of a state about to be born. It must protect the lives and homes of the 700.000 men, women and children of Palestine. Frevlded Per Militia "The UJM. decision (to partition the holy land) made no provisions for an international force, but did provide tor a Jewish militia to defend the Jewish state and to maintain public security.

It therefore devolved upon the responsible defense forces of the Jewish community of Palestine to rush preparations in a race against time in view of the threatened Arab aggression in defiance of the U.N. decision and the announced early withdrawal of British troops. Legltisnate Purchase "Accordingly, steps were taken to arrange for the legitimate purchase cf war surplus materiel and equipment To facilitate these purchases, the Jewish agency made dollar credits available. The materials found near Asbury Park on Thursday were, to the best Of our knowledge legally procured to await legitimate shipment." At Romulus, N.Y, IX Col. Robert R.

Judson, commanding officer, said the army had refused to deliver the last C4 tons of "composition composed of 90 per cent TNT (trl-nitro-toluene) and half again as devastating. French Oppose Bi-Zone Plan WASHINGTON, Jin. 10 -A French objections to the latest British-American decisions on ad- ministering the Anglo-American zones of Germany may hamper efforts of the western powers to consolidate all of western Germany into a single economic and political unit. Evidence of French disapproval of the new Anglo-American move to set up a German administration over the merged British-United States zones, apparently without consulting the French, developed rapidly today not only in Paris but also in London and Washington. French Ambassador Henri Bonnet Is expected to register his government's protest with the state department early next week.

Tight Defense Rings Mukden NANKING, Sunday, Jan. 11 (JP) Generalissimo Chiang Kai-Shek flew to Mukden today for strategy conferences while his government was claiming a major victory, with 40,000 communists reported killed or wounded, in southern Manchuria. Direct from Mukden, Spencer Moosa, Associated Prets correspondent, sent word that the Chinese government has that industrial city better defended than at any time since the nationalists took it over from the Russians. "Barring circumstances beyond present reckoning, red conquest of Mukden within the next few months is cut of the question," Moosa's dispatch said. lation was touched off by the inclusion of the name of "Edith Thomas, Washington.

D.C." in an agriculture department list of 2.006 traders in cotton futures as of July 31. 1946. The "Edith Thomas. Washington. was listed as holding 300 bales "long" in the market on July 31.

1946. No KMWkdic Senator Thomas was asked whether his wife, whose name is Edith, had been in the cotton market. "She has her own money and I don't know what she does with it." he told a reporter. Mrs. Thomas would not comment herself on whether she had been in the market There were fresh repercussions meanwhile in the senate investigation of whether administration insiders have utilized government information for private profit in commodity dealings.

Says Stassen Lied Edwin W. Pauley, aroused by testimony which Harold E. Stassen, candidate for the republican presidential nomination, gave about him to an appropriations subcommittee yesterday, accused Stassen of "deliberate falsity." Pauley in a telegram to Senator Ferguson; (R-Micn) asked the chairman of the subcommittee which is- making the commodity investigation, for xhe right to cross-examine Stassen soon In person. Stassen had testified that Pauley had not told the whole story about his transactions in the futures markets. Unander Seeks Treasurer Nomination Sigfrid Benson Unander.

Portland, ex-executive secretary to former governor Charles A. prague and army veteran, announced Saturday that he will be a candidate for the republican nomination for the office ef state treasurer In May'a primary election. Unander is now treasurer of the state central republican- committee, member of the Young Republicans and a precinct committeeman. During his term aa executive secretary. Unander" gained valuable knowledge of the workings of the state board of control.

He conducted research projects on fttate institutions and studies of the retirement system, forestry, economic matters and agriculture. A graduate of Stanford university, Unander earned a BA degree in political science and a master's degree from the Stanford school of business1. He served four and a half years in the army, including 39 months overseas. During his duty he earned four foreign decorations and six battle stars for service in four major campaigns. He Is a member of the American Legion, VFW and is senior commander of the Military Order of World War II.

As a distinguished marksman Unander placed 12th In the 1932 Olympic Games preliminaries. He is also a member of the Masons, Eagles and Alpha Tau Omega fraternity. Will Forgery Charge Laid in Spinster Death NEW YORK. Jan. lO-fV-A plot to obtain the $300,000 estate of an elderly spinster-recluse by forging a will was charged against two men today and police said they also were investigating circumstances of the woman's death.

District Attorney Frank S. Ho-gan said a lethal quantity of barbituric acid was found in the body of Miss Mathidle Molsberger. 81. when her body was exhumed after relatives In Germanv objected to probate of the will. Fred Dresel.

S3, superintendent of the apartment house where Miss Molsberger lived, was held in $50,000 bail and Fred Lasch, 56. an undertaker, was held in $25,000 ball on first degree forgery charges. Hogan accused the men of forging a will on a blank sheet of paper on which he said Dresel had obtained Mks Molsberger's signature before her death. Dresel was to receive the bulk of the estate, Hogan said, paying one-fourth to Lasch. Honses Creak in Tokyo Earthquake TOKYO, Sunday.

Jan. ll-fFV Houses and other structures creaked and quivered in Tokyo today at an earthquake shook the city and surrounding areas at 7:27 a. m. (2:27 p. m.

Saturday, Pacific standard time). Although widespread, the earthquake was light and first reports told of no damage. It was felt even heavier in Yokohama. 17 miles to the south. LINDBEXGH BACK IN U.S.

SAN FRANCISCO. Jan. 10-4V Charies A. Lindbergh left here by plane at 7 p.m. tonight for Chicago.

He arrived Friday after a tour of the Orient aboard Pan American Airways, hagen to meet the former monarch and announced she was going Saturday and several isolated families in the area now haw exit The Willamette crested at Portland Saturday at 19.4 feet, nearly a foot and a half above flood stage, and then began receding. -The Columbia river, swollen by the Willamette's flow, went a foot and a half beyond flood stags too. But no damage was expected except the usual inundation of low pasture lands. i George H. Flagg at the conclusion the telephone company asked an The lesser figure granted, the i utilities commission said, will enable the company to earn approximately 5.5 per cent on its original cost, depreciated, of its property in Oregon.

Among the monthly rate increases for individual business, individual residence, two-party residence and four-party residence telephones are the following: Indlr. ladlT. 2-party 4-party party lest. Bos. Ketf.

Rest. Portia .75 SaJesa UtS BogCM 1-2S Albany 1.M Crvallls JS Dallas 1 .21 IM l4epemd. la Maamoatk. UJ I.M WMtkira. 1J4 JO Falls City 21 JO JO as.

as 7S .7 -s 4 JtS JU JtS JO JO JZS JO (Many valley towns are served by private or independent companies whose rate schedules were not involved in the current pro ceedings.) The utilities commission said the rates were based on a parity plan so that, in general, any community -with a certain number of telephones in various classifications would -have the same rate as other communities with similar numbers. Variance in increases was laid to the fact that some cities had outgrown their previous Toll Charges Ont Toll charges between, Monmouth and Independence are eliminated, as are such charges between Milwaukie and Oak Grove. Farm line services are increased generally from the present 50 cents to $1 a month. Business customers on farm lines will pay $1.50 instead of 50 cents. Other increases on farm lines are from 15 cents up.

In the order said suburban service rates are decreased. All report charges are eliminated and basic toll rates for 175 miles or more are reduced. All basic changes in toll rates, which would have increased the differential between intrastate and interstate were denied. 25-Cent Differential The order eliminated the monthly 25 cent differential between wall and desk telephone sets in new installations but retained the lower rate for wall sets now in use. Regarding actual operations of the telephone firm, the report said that a $60,500,000 expansion program was contemplated in Oregon from 1948-1950 inclusive, and commented that while there was a net gain of 45,000 stations (telephones) between Sept.

30, 1945, and March 31, 1947, applications now totaled 500 more than at the start of that period. (Additional details on page 4.) Senators Request Aid Classified as Relief, Recovery WASHINGTON, Jan. 10 -(A-The state department agreed today, at senatorial requests, to calculate how much of the European aid program will be spent for "relief" and how much for The department's spokesman, Ambassador Lewis Douglas, also agreed with a senator's estimate that the United States may recover up to $2800,000,000 in loan repayments out of the $6,800,000,000 which President Truman and Secretary of State Marshall asked to finance the first 15 months operation of the program. DANIELS SAID WOEE RALEIGH, N. Jan.

10 The condition of Publisher Jose-phus Daniels of the News and Observer, close friend of four democratic presidents, grew worse tonight i from bronchitis and complications. He is 85. in the immediate future. "Feller" can't be "White House broken" because he isn't just plain house broken yet. Also, Mrs.

Truman is reported wanting the care of the pup left up to daughter Margaret and Margaret is often absent from the White House on singing tours. If "Feller" does make the -grade and is transferred to the White House, his home will be in the White House carpenter shop. He'll get the quarters once occupied by Fala, the famed dog of the late President Roosevelt. The dramatic denoument to the king's abdication and postponement of the romantic rendezvous was explained by Maj. Jacques Vergotti, Mihai's spokesman, who said a love "entanglement" right now could be used by Romanian communists to destroy his hopes of eventually returning to his throne.

Most persons in the entourage of the Prince of Hohenzollern, as 26-year-old Mihai is now known, have stressed that he abdicated for "political reasons" and not to "marry the girl he loves." Romanian communists have ap peared to be trying to give theJ impression Mihai was an unstable playboy, following in the footsteps of his father, former King Carol II, who once renounced his rights to the throne for romantic reasons. The uphappy state of Mihai and Anne's love affair was disclosed when the Danish princess, looking pale and tired, got off the train at Liege, Belgium, in mid-journey from Copenhagen to Lausanne, with her mother. Princess Marrethe. She transferred to an automobile and said she was going instead to Luxembourg, where she has relatives, "for an undetermined period and have a little rest." BRIDGES' LAWYER SHOT SAN FRANCISCO, Jan. 10-P) George R.

Andersen, 47, attorneys for Harry Bridges CIO Waterfront Workers, was shot through the right Fhoulder today in a who invaded his downtown Mont-l gomery street law offices. used by married couples whose gross income more than $10,000, Fisher said. The 75-25 formula may not be used to allocate: gain or loss from sale or disposition of capital assets; pensions or retirement pay; income from a partnershipestate or trust or extraordinary income earned 'in 194ft and I paid If laid in 1947, such as a bonus. intangibles income exceeds $2,000, only that portion actually earned after July 5, 1947, may be divided between the spouses. If less than $2,000, it may be divided by the 75-25 formula.

Fisher cautioned that married couples should file returns to produce the least combined tax. instead to Luxembourg. Nurses Gain 40-Hour Week Twenty-five registered nurses of the Salem Memorial hospital will go on a 40-hour-a-week schedule today, the first time such) a plan has been instituted in a hospital here. The hospital is one of the first in the state to have the 40-hour week for graduate nurses, said Margaret A. Darby, superintendent of nurses.

Over a year ago, said Miss Darby, the Oregon State Nurses association recommended that graduate nurses be put on a 40-hour week. The schedule prepared by the Memorial hospital makes it necessary to employ only a few more nurses, she said. West Backs Morse For Demo Ticket PORTLAND, Jan. 10 -(P)- Ex-Governor Oswald West, a democrat, told the democratic Jackson day dinner tonight that he approved of Oregon's republican Senator Wayne Morse. "I like him," West said of Morse, "because he's ornery and ride- horses." West suggested the democrats put Morse on their ballot.

In an earlier speech. William L. Josslin listed three men as possibilities for the democratic gubernatorial ticket: Marshall Dana, Oregon Journal editor; State Senator Lew Wallace; Aus-ton Flegel, and Dr. Peter Odegard. KILLED IN MINE BLAST METZ, France, Jan.

10 I Eight dead men and 45 injured were taken from the Vuillermin coal mine here today after, two fire-damp explosions at the level. Sixty men were caught underground at the time of the blasts. Important As Stalin? Well, 200,000.000 Russian people certainly count for something apd it's time we knew something about them. i. That's what the Nsw York Horald-Tribuno thought when it sent John Steinbeck and Photographer Robert Capa to Russia.

Steinbeck and Capa didn't bother with politics. They went to Mr. and Mrs. Russian Joe Doakes, far behind the ircn to dances, to plays, to collective farms, to factories, to homes. What they found will be reported in 15 gripping stories constituting the Russian Journal an outstanding saga of the times.

The Russian Journal will stco Wednesday, January 14. in Community Held to 75-25 Property Income Tax Split Ratio for '47 Income the tax commission said, a 7S-25 per cent division of total husband-wife income would be employed in most cases. The per cent will be declared by the husband or actual wage earner, and the 25 per cent will be declared by the wife or non-wage earner. This method will be used. Fisher said, based on the assumption that at least 50 per cent of the.

husband's and wife's total income was earned before July 5, 1947. Since only the last 50 per cent is subject to the community property law, one-half or 25 per cent belongs to the spouse not employed. The 75-25 formula, may not be Married couples filing state income tax forms under the new community property law for the first time in March may not make a 50-50 division of their total incomes for declarative purposes because the statute was in effect only six months of 1947. the state tax commission said Saturday. Tax Commissioner Earl Fisher announced that a full list of regulations governing filing of 1947 returns would be published sometime this week, but pointed out only income earned since the law became effective July 5, 1947, is subject to division between spouses.

To simplify filing of Ux returns. "1.