The Capital Journal from Salem, Oregon • Page 1

Labor Unions Journal apital Canada Makes New Charges of Spy Aciivities by Russia; Secret Agents Work Listed in Report Top Secret Political Information Obtained, Says Document; False Passports Procured; Seattle Espionage Trial Nearing Finish Price Five Cents Salem, 58th Year, No. 166 matttr tt Salem, Oregon Ottawa, July 15 UP) Soviet espionage operators In Canada sought and obtained top secret political information relating to policies of the United States and Britain governments as well as the Canadian, the special royal commission investigating Moscow-directed spy activities reported today. The charge was made In the commission's fourth and final report. The document, presented in the house of commons by Prime Minister W. L.

Mackenzie King, added nine new names to the 14 previously named, but said that without further documents "we cannot identify any non-Russian members" of rings other than that around which the five-months probe has revolved. That was the military intelligence system directed by Col, Nicolai Zabotin, former military attache recalled to Moscow some 55 Dickering for Life? The United Press, in a copyright story, says William Heirens, above, 17-year-old student, is attempting to make a deal with, state in which he will admit Suzanne Degnan murder if he is guaranteed life sentence instead of death penalty. Heirens Trying All Roads Lead To Ball Park "We do not want to mislead the public and we want all purchasers of tickets for Monday night's benefit game between Portland and Salem to understand the situation," said George Emigh, business manager of the Senators, in explaining that 5000 tickets have been sold for the grandstand at Waters field. Since the grandstand will not hold in excess of 3000 persons, those who come late will be compelled to seek accommodations in the bleachers or on the field. Arrangements have been made for roping off a portion of the field for the overflow.

"Since the game is a benefit for little Tommy Edwards, we felt justified in putting out an excessive number of tickets," said Emigh. "And while many purchased blocks of 25 or 50 seats, with evident intention of not using all of them, it is apparent that we will have more in attendance than the stands will accommodate." Gates to the park will open at 6:30 and the game will start at 8:15. To Avoid Chair (Copyright. 1S4S. by the United Press Chicago, July 15 (U.B William Heirens, 17-year-old student, is trying to make a deal with the state to confess to the Suzanne Degnan kidnap-murder and two other murders in exchange for a life sentence instead of the electric chair, the United Press learned today from absolutely reliable sources.

The admissions have been made orally, it was time ago for "inadmissible ac-' tivities." In swift sequence, Supreme Court Justices Robert Tascher-eau and R. L. Kellock reported: 1. There was an organization whose duty it was to procure false Canadian passports and other citizenship documents for the use of agents in Canada or elsewhere. 2.

Zabotin and his assistants were helping to supervise and finance the work of an organization of agents operating in certain European countries. 3. There can "be little doubt" that the NKVD, the secret Russian political police, "have a powerful organization in Canada." 4. Several parallel "undercover systems or networks" existed under direction of members of the soviet embassy and they "had and may still have their own undercover agents operating in Canada. 5.

They included another "military" network parallel to that of Zabotin and, like his, directed by red army intelligence headquarters. 6. There was some evidence that a naval system of intelligence was being organized. 7. A "secret political system" was under a Russian named Goussarov, who held the official position of second secretary at the embassy.

Its task was to act as the pilot for communist activities. Seattle, July 15 Defense Attorney Tracy E. Griffin described the government's closing arguments in the Lt. Nicolai G. Rcdin conspiracy-espionage trial today as an "amateurish 'proentation." 4 Opening the closing day of arguments, he asserted that the one issue was the "truth or falsity" of Herbert G.

Kennedy, shipyard engineer who has testified he sold Redin secrets about the U.S.S. Yellowstone, a destroyer tender, for $250. Of Kennedy, who has told of working with the FBI from the start oi ine case, inciuaing wir- ing his house for sound, Griffin said "Not a day passed but what the government couia nave obtained substantial evidence on whether what Kennedy said was true." Newport Receives First 1946 Tuna Newport, July 15 (IP) The first 1946 tuna 114 pounds caught about 35 miles offshore from Cascade Head was delivered here yesterday by the fishing craft May Bee. The first delivery here last season was July 20. Seattle Flash Fire Seattle, July 15 (U.R) A flash fire which originated in a fuse box almost completely destroyed the $75,000 Wood Beautifier Paint company warehouse here today, bringing three battalions of fire-fighters in answer to a "3-11" alarm.

I i Plan Walkouts Buyers Strikes Reuther Predicts Wage Campaign If Prices Go Higher (By the United Press) Labor unions planned walkouts and buyers' strikes today to protest the steady rise of prices. A survey of principal cities across the nation showed that prices for basic foods and other commodities were continuing to mount. At Chicago, Walter P. Reuther, president of the CIO United Automobile workers announced that the union's 800,000 members would quit work Tuesday for one or two hours to protest rising prices. If price controls are not reinstated, Reuther predicted, there would be a buyers' strike "such as this country has never known." He warned that if prices are not curbed the UAW would "begin a fight on the wage front." 'Work Holiday' At Minneapolis, 10,000 AFL truckdrivers and 5,000 affiliated union workers planned a mass "work holiday" protest demonstration for July 31.

Union leaders said only emergency deliveries would be made by union drivers. At Springfield, 111., President John B. Marchiando of the Independent Progressive Mine Workers of America, representing about 30,000 coal miners, urged all labor unions to join in demands for "suitable price control." "If necessary, labor should call a nationwide strike against all industry to show congress we won't let anyone take away the few dollars we've saved during the war," he told a mass meeting. At Hartford, presidents of 100 CIO unions planned to meet to discuss plans for a statewide buyers' strike. Would Defeat Move Meanwhile ional leaders told President Truman today the House would defeat a move to send the Senate's OPA revival bill to the White House In its present form.

Mr. Truman was told the House would approve a resolution to send the controversial measure to a Senate-House conference committee for compromises on some provisions approved by the Senate. (Concluded on Page 11, Column 7) 'Butler Strike' Definitely On Butter, butter, who's got the butter doesn't rhyme true in the Salem area the last few days. Butter is in groceries, and the buyers Just aren't buying the once-scarce food item that holds a price tag of 80 cents a pound in mostl ocal stores. "The buyers' strike is definitely on," one retailer said, "and the price of butter will unquestionably go down as the strike is continued." Another store owner reported that Salem housewives are turning to oleomargarine as a substitute for butter in cooking.

"Butter is stocking up," he reported, "wihle oleo is something we can't keep In stock." Low price level fo rtoday recorded in a survey of local stores was a 79 cents a pound level hit In several cut-rate groceries. "Not selling very well people get butter only if necessary for a special dish not very much on butter are some of the comments made by Salem grocery men. No source promises a drop in the price of the golden product. 600 Houses fo Be Built Near Eugene Eugene, July 15 UP) Plans for a $3,000,000 to $4,000,000 housing development south of Eugene, with work to start this week, were announced today by Frank Kinney. Kinney said his Oregon Settlement association would build 600 houses of $6000 to $8000 each along with a shopping center, playgrounds, streets and bridle trails.

The Weather (Released by the United States Weather Bureau) Forecast for Salem and vicinity: Partly cloudy tonight with a few scattered light rain showers. Partly cloudy Tuesday. Lowest temperature tonight, 53. Conditions will be favorable for dusting, spraying and cherry harvesting in the morning. Max.

yesterday. 61. Min. today, 52. Mean temperature yesterday, 61, which was 5 below normal.

Total 24-hour precipitation to 11:30 ajn. today 0.03. Total precipitation for the month, 0.72. which is 0.50 inches above normal. Willamette river height, ft.

Oregon, Monday, July 15, Truman Signs British Loan; He Lauds Plan Washington, July 15 CP) President Truman today signed the $3,750,000,000 British loan agreement, terming it a major step to carry out a program "for reviving and expanding international trade." The loan, Mr. Truman said in a statement, serves the im-madiate as well as long-time interests of the United States, "by helping to restore world trade." At the same time, he added, it enables Great Britain to "co operate in creating a pattern of mutually beneficial economic relations among the nations of the world." "It goes far to remove the danger of rival and antagonis tic economic blocs," the presi dent continued. On Same Fair Terms He emphasized that the agreement between the two countries is not directed "against any other country" adding: "The system of trade we seek is open on the same fair terms to all the United Nations." With the British loan arrangements now complete, attention has turned to a possibl loan to Russia. There seems little prospect that a credit for the Soviets could be negotiated for at least a year. The Kremlin reportedly is interested in borrowing about from this country.

Little has been heard of a Russian loan since the United States some months ago notified Moscow of a willingness to discuss it provided Russia would agree to talk at the same time about her trade relations with the Balkans and other areas within the Soviet sphere of influence. Any such loan would have to come through the export-import bank unlike the one to Britain which late Saturday won a 219 to 155 House vote of approval, following Senate clearance previously. Special Legislation Because of the large size of the British loan, its expected effect in improving worldwide trade and prosperity, as well as the close wartime alliance between this country and England, the British loan was arranged through special legislation. Other countries seeking to borrow money from the U. S.

normally would go through the export-import bank, as France and Ethiopia have just done for loans of $650,000,000 and respectively. The bank was set up to make foreign loans but doesn't have enough money left to grant any billion dollar Russian loan. Velvet Curtain Hung on British Moscow, July 15 (IP) The communist organ Pravda declared today in an article by Boris Izakoff that while British circles have been talking about a Russian "iron curtain" in eastern Europe Britain has hung up a "velvet curtain" in the Pacific and Middle East. The article, which invited Pravda's readers to lift the "velvet curtain" and look behind it stated: "Curious details are outlined from time to time behind the folds of the velvet curtain, which divides Indonesia from the outside world." It added that in Indonesia a year after the war there is "occuring war activity on a big scale of which we read daily in the newspapers" and that more than five months after Foreign Secretary Ernest Bevin's speech before the United Nations security council "war in Indonesia is unceasing day after day." Behind this same "velvet curtain," the article continned, a British government mission went to India with a plan of treating all possible questions "except the most important the evacuation of the English army from India." Turning to Palestine the Pravda writer stated: "In reality there is happening in Palestine something quite close to war operations. All that is there being done is justified in London by citing a misunderstanding between Jews and Arabs.

Convenient justification!" Pravda said that Egyptian efforts to get the British army out of Egypt were useless and that foreign troops were still in Syria and Lebanon. 1946 To Die Draja Mihailovic, one of the first underground leaders to gain prominence in war, has been found guilty of treason and sentenced to die before firing squad. Found Guilty Belgrade, July 15 U.R A military court today held Gen. Draja Mihailovic guilty of treason and war crimes and sentenced him and 10 other defendants to death before firing squads a sentence which was expected to be carried out within 48 hours. The bearded Mihailovic and his companions had the right to anneal their conviction to the presidium of the national assembly but it was expected that the appeal, would be rejected.

The appeal to the presidium must take the form of a request for a pardon. The execution of the convicted men will be conducted in private in the military prison where they are held. The remainder of the 24 defendants at the trial were also convicted and were given long prison sentences. Among those condemned to death were two members of former Yugoslav governments and the former prefect of Belgrade. The formal counts on which Mihailovic was convicted were high treason, collaboration with the Germans and Italians and war crimes.

The verdict condemning Mihailovic was handed down exactly five weeks after this trial opened in the auditorum of a mlilary academy on the out' skirts of Belgrade. Claims Japs Set Invasion Tokyo, July 15 (IP) A Japanese repatriate from Manchuria asserted today that at the end of the war Japan was preparing to invade the United States from Manchuria with balloon brigades ferried across the Pacific in man-carrying free balloons. Lance Cpl. Isamu Takagi, who said he was captured by the Russian army and escaped, told the story of Kyodo news agency, adding that the man-carrying balloons, similar to the explosive carriers which were launched in great numbers, were perfected too late for use. Takagi said he was with the 2522nd balloon brigade at Kirin, Manchuria, where 5,000 of the explosive-carrying type were released to be windborne toward the United States in the last three months of the war.

A five-square mile, underground plant at Kirin was used for the balloon manufacture, he asserted. He said the balloons cruised at from 20,000 to 40,000 feet. Churchill Urges Unlimited Force Luxembourg, July 15 (IP) Winston Churchill strongly advocated today unlimited armed forces for the United Nations against all aggressors. Addressing the Luxembourg chamber of deputies, Churchill urged a collective force exerting its action from a world center so that aggression would "fall powerless." "I hope Germany will, resume her place in the circle of Europe in the form of separate states," the former British prime minister said, "so that not one of them will be strong enough to menace the safety of peace." After lunch Churchill paid a tribute to all United States soldiers who fell in the Battle of the Bulge by placing a huge wreath of red roses and white gladioli on the grave of Gen. George S.

Patton, Jr. The wartime commander of the U. S. Third army, who died of injuries suffered in a traffic accident after the victory, is buried in Hamm cemetery near Luxembourg, where 8,500 white crosses mark the resting places of American soldiers who fell defending this country. 3 I IV pss Help I jougni rrom May Frequently Washington, July 15 (IP) Joseph Freeman, a munitions manufacturer's a i gton agent whose salary skyrocketed from $5,841 to $70,000 In four years, testified today that he asked Rep.

May Ky.) for business help "six or eight times." But Freeman told the senate war investigating committee, searching into the wartime operations of an Illinois munitions combine, that he "didn't know" whether May had ever visited his office. That response came after Chairman Mead N.Y.) cautioned him to "think hard and long, and remember that you are under oath." The committee has received testimony that May, chairman of the house military committee, interceded with the war department to give contracts to the munitions combine. May has declared his activities were solely in the interest of the war effort and that he did not profit. Not Always Helpful The combine received wartime contracts amounting to more than $78,000,000. "Was the congressman cooperative?" inquired Mead.

"Not always," said Freeman. Under questioning, Freeman testified that sometimes he had to wait as much as a week in order to get May's help on problems involving the Erie Basin and Batavia Metal Products companies, two of the concerns in the combine. Before Freeman was called to the stand. Mead announced that the committee is examining the law "as to bringing Congressman May before the committee by legal process." The committee has repeatedly invited May to testify. He advised he would "consider" appearing if permitted to recall other witnesses and have his counsel examine them.

Mead termed May's stand unacceptable. No Other Help George Meader, committee counsel, asked Freeman whether he asked anyone, in addition to May, for aid in solving the problems of Batavia and Erie Basin. "There was no reason," Freeman responded. The witness said that he called upon May at the congress member's office "two or three times." The other contacts, he testified, were by telephone. Mead put into the record an exchange of correspondence with May.

"The committee," Mead said, "at its executive session on Saturday, instructed the counsel to examine the law as to bringing Congressman May before the committee by legal process. "It postponed decision as to future steps pending an examination of the law and until the completion of the testimony of other witnesses." In the exchange of letters, Mead invited May to testify before the committee and the Kentucian replied in effect that he was willing to testify but on his own terms. Mead said "no further written informal invitations" will be sent May but "the invitatoin to appear stands." Truman Pat- Sen. Wheeler Washington, July 15 (IP) The vote-pulling power of a friendly letter from President Truman encounters a test tomorrow in Montana's democratic primary, which finds James Roosevelt, son of the late president, and at least two labor organizations bucking Senator Burton K. Wheeler's renomina-tion bid.

Lined up on one side are Wheeler and Mr. Truman, who protested against the "smear campaign" he said was being made against his old senate colleague. On the other are Lief Erick-son, Wheeler's opponent, James Roosevelt, who urged nomination of Erickson in a statewide radio address because he said Wheeler went to "very dangerous extremes in opposing policies designed for the protection of our nation in critical times, the CIO Brotherhood of Railway Trainmen, Senator James E. Murray Mont.) and some members of the national Farmers Union. The senate campaign investi learned.

These sources said they have not yet been put into writing. Heirens, it was learned, has become dismayed at the amount of evidence piling up against him in the Degnan killing and in the "lipstick murder" of ex-Wave Frances Brown, knifed and-shot Dec. 10, 1945, and in the slaying of Mrs. Josephine Ross, 43, attractive brunette, killed June 5, 1945. The sullen, black-haired youth is willing to offer full confessions in the three slay-ings and in the multiple burglaries charged against him in an effort to get life and cheat the electric chair.

Details Harrowing Details of the admissions are said to be harrowing. The Degnan child was kidnaped, garroted, and her body beheaded, dismembered, and hidden in sewers near her home at '5943 Kenmore avenue. The youth, a University of Chicago student, first was connected with the Degnan killing through his fingerprints found on the ransom note, a printed, irregular piece of paper left in the bedroom from Suzanne was taken last Jan. 7. The fingerprints were discovered linking him with the Brown killing.

Officials Keep Mum When he was confronted with the latter evidence, reliable sources said, he muttered: "That's mine. And the Ross one is, too." After conferences yesterday between state's and defense attorneys, the principals replied "No comment." Chief of Detectives Walter Storms said he had absolutely no knowledge of any admissions. Mai Coghlan, one of Heirens' attorneys, said that "I'll merely stand pat on my patent 'No The United Press, however, considered its sources to be unimpeachable. Ml. Angel Hop Grower Succumbs Silverton, July 15 (IP) Joe Walker, Mount Angel hop grower who tumbled from a cherry tree at his home Tuesday, died in a hospital here.

Public Death Plan Abolished Warsaw, July 15 U.Viktor Grosz, government spokesman, today announced that nine persons convicted of participation in the Kielce pogrom were executed by a firing squad yesterday within the walls of the Kielce prison instead of at a public ceremony as had been planned. There was no immediate explanation as to why the public execution was not carried out. Grosz announced that the commander and deputy commander of the Keilce security police and the commander and deputy commander of the Kielce citizens' militia have been arrested on charges that they failed to "act sufficiently and energetically to break up crowds and prevent violence" in the anti-Jewish outbreak. Yankees Held As 'Hostages' Berlin, July 15 ttl.R) The U. S.

army announced today that the Russians were holding Warrant Officer Samuel L. Harrison and his wife as "hostages" for two Red army officers alleged by the Soviets to be held in prison by the Americans. Maj. Gen. Frank A.

Keating, U. S. military governor in Berlin disclosed for the first time the explanation given by the Russians in the detention of Harrison and his wife, Helen, of Harrah, and San Antonio, Tex. She came here as a dependent. Keating said U.

S. authorities had denied persistently the Russian charge that two Soviet officers were held by the Americans. The Soviet military governor, Maj. Gen. Dratvin, said in a letter to U.

S. authorities dated July 11 that Harrison and his wife would be released today. Keating predicted "sensational developments," the nature of which he declined to specify, when the missing Americans return. for himself and his colleagues, Senators Connally Tex.) and Vandenberg "I'm very happy to be home and I know I speak for our delegation when I say we made some progress on the road back to peace." In a few minutes chatting with the president, he arranged to make his first personal report at the White House today and told newsmen he would talk on the radio tonight. Ahead are two busy weeks of work for the secretary, who expects to return to Paris by July 29 for the opening of the 21-na-tion conference on peace treaties for Italy, Finland and the Balkan states.

Election Faces An Injunction A move has been in progresi in the last several days to at tempt injunction against th 'JNncial annexation election Friv day of this week, proposing th. annexation of nine distrcts outside the city limits. This became known Monday. This afternoon it was said the injunction suit to stop the election might not materialize, although definite information, it was said, would not be available until later in the day. One of the main contentions, according to persons interested, was that the city's determination to cut off water and other city facilities from residents outside the city limits amounted to coercion in getting names signed to annexation petitions.

A subscription paper has been in circulation to get money pledged to cover the cost of the suit. Portland Chess Ace To Play in Russia New York, July 15 (IP) Arthur W. Drake, Portland, was selected yesterday as one of eleven United States chess players who will be sent to Moscow to play a group of Russian experts Sept. 9-12. Hughes Noon Report Los Angeles, July 15 (IP) Howard Hughes was "slightly improved" at noon today, his physician reported.

employed by the senate small business committee headed by Murray, Wheeler's Montana colleague who is opposing his rennmination. The campaign committee learned that Murray donated $2000 to the campaign of Erickson, who formerly headed the Missouri Valley Authority Murray has been plugging. It also heard that $1000 had been contributed by the Brotherhood of Railway Trainmen and $1500 by the CIO United Auto Workers of Detroit. Out of this maze Wheeler, seeking his fifth term, singled out the CIO-PAC for heavy attacks. He blasted loo at what he called the "New York pinks" he said were against him because of his opposition to many of the late President Roosevelt's foreign policies.

The Wheeler letter is the first political pronouncement of its kind President Truman has made, outside of his own state of Missouri. Politicians are watching its effect in a race that overshadows other political contests this week. on-the-Back Letter for to be Tested Tuesday Byrnes Gives Radio Report To Nation Today at 6 P.M. Washington, July 15 VP) Secretary of State Byrnes drafted reports today for President Truman and the nation on the halting progress toward re-establishing peace in Europe. The cabinet gating committee has pushed into this criss-cross of alignments to dig into (1) contentions by Wheeler that he has been subjected to "unfair propaganda" and (2) a somewhat similar counter assertion by Erickson.

Acting Chairman Edwin C. Johnson Colo.) said he probably will call the group together tomorrow to hear New York and Montana witnesses testify about Wheeler's claim that a recently published book attempted to "smear" him. The committee's investigation thus far disclosed a letter from Mr. Truman describing as "sheer distortions of the fact" assertions that Wheeler is an enemy of railroad labor and expressing hope that "the smear campaign against Burt Wheeler" would stop. The senate group, without much success thus far, also has been looking into complaints by Erickson that Wheeler "dominates" the inquiry committee.

It found, among other things, that the committee's secretary, Mrs. Grace Johnson, formerly was officer, Just returned from the four-power foreign ministers' conference at Paris, plans to address the nation by radio tonight at 6 p.m. (PST) over the Mutual and ABC networks. Diplomatic authorities looked to that speech for a new estimate by Byrnes on whether the western powers and Russia are developing greater or less cooperation. Also the secretary may emphasize his intention to press for another foreign ministers' meeting later this summer to tackle anew the problems of German and Austrian peacemaking.

Landing at Washington airport yesterday to receive a warm greeting from President Truman, Byrnes summed up the 28-day Paris meeting this way.