regional
Kerans panel to
investigate Gillis
SALEM (AP) — House
Speaker Grattan Kerans said
Sunday he will appoint a
special House committee to
look into charges that newly
elected Rep. Pat Gillis of
Portland violated election laws.
Kerans said he will head the
committee and that he will ap
point only members to it who
are retiring from the House.
Kerans gave up his House seat
in his unsuccessful bid for state
treasurer in Tuesday’s general
election.
When the Legislature con
venes Jan. 14, the House could
refuse to seat Gillis if it decided
he was unfit to serve.
The state Democratic Party
has filed a complaint with the
secretary of state’s office over
Gillis' use of a campaign en
dorsement letter . purportedly
written by an officer of the
American.‘Association of*
Retired Persons. .
Gillis, a Republican, defeated
two-term Democratic Rep. An
nette Farmer.
The letter supposedly signed
by James Ferguson. Oregon
AARP legislative chairman, en
dorsed Gillis.
Ferguson has denied writing
the letter and said the AARP
doesn’t . make political en
dorsements. Gillis has said he
thought Ferguson had given his
permission for the letter in a
telehone conversation.
Kerans, a Eugene Democrat,
said he has a duty while he’s
still speaker to “make sure that
the integrity of this chamber is
not violated by half-truths, in
nuendos and false
accusations.”
Kerans said the special com
mittee will meet the first week
of December. Findings will lx:
submitted to the new speaker.
PSU president
faces evaluation
PORTLAND (AP) — The chief
executive of Portland State
University will be the subject of
a long-scheduled evaluation
later this month, amid criticism
by two professors who want
him ousted for lack of
leadership.
PSU Pres. Joseph Blumel. 56,
will be evaluated formally Nov.
27-29 when his boss, state
higher education Chancellor
William “Bud” Davis, visits the
campus in downtown Portland.
Meanwhile, the campus
branch of the American
Association of University Pro
fessors is preparing to survey
faculty about Blumel in con
junction with the visit. The
AAUP chapter has remained
apart from the dissident pro
fessors’ efforts.
Ben Padrow, a speech pro
fessor. and Sumner Sharpe, pro
fessor of urban studies and
planning, have been critical of
Blumel’s leadership. They say
campus dissatisfaction is high
because of a lack of leadership
and a clear agenda for the
school.
“I have never seen faculty
morale as low as it is,” said
Padrow, who has been with the
university since 1955.
Blumel has said he does not
want to comment on the pro
fessors’ criticisms before the
evaluation.
He acknowledged, however,
that there was dissatisfaction on
campus resulting from budget
Oregon Daily Emerald •
cuts made in 1983, when the
university became the first and
only institution in the State
System of Higher Education to
declare financial exigency, a
state of financial emergency
that permitted it to lay off
tenured faculty members
without one year’s notice.
Padrow and Sharpe said
dissatisfaction could not be
blamed solely on budget cuts.
They questioned whether the
layoffs and program elimina
tions could have been avoided if
Blumel had acted forcefully
earlier.
Padrow said neither the
University of Oregon nor
Oregon State University
declared financial exigency
during similar budget crises,
but made other arrangements to
absorb budget cuts.
The two professors also
criticized Blumel for failing to
build relationships with the
outside community that would
further the interests of the
university.
Blumel is in his 10th year as
president. When Oregon State
University Pres. Robert Mac
Vicar retires at year’s end,
Blumel will be the state’s senior
university president.
Timber bill late
for some firms
PORTLAND (AP) — Eighteen
timber companies in Oregon
and Washington are so troubled
financially that even the timber
contract relief bill signed by
President Ronald Reagan pro
bably won't enable them to sur
vive. a spokesman for a trade
group says.
The companies may be forced
into bankruptcy or may be forc
ed to quit operating voluntarily,
said Michael Sullivan, vice
president of the Portland-based
Industrial Forestry Association.
“We counted 100 companies
in the two states that absolutely
needed the bill, but we think 18
won't survive even with it.”
Sullivan said.
He declined to identify the
companies, but said they are in
addition to those that already
have gone out of business.
The legislation, signed last
month, allows companies to
buy their way out of expensive
federal timber contracts, signed
in the late 1970s and early
1980s. by paying a portion of
what they owe without
harvesting the wood.
Lumber prices have fallen
below what many companies
projected when they signed the
contracts, and timber industry
officials say they can't afford to
pay the government the prices
to which they agreed.
Many contract defaults
already have occurred, and
more are predicted by govern
ment and industry officials.
About 400 million board feet of
Douglas fir, hemlock, pine and
other timber in the region has
been returned to the govern
ment unharvested.
The U.S. Forest Service
tallied about 240 contracts,
valued at more than $85
million, that were defaulted in
the two years ending Sept. 30. If
the timber covered by those
contracts is sold again to
another company at a lower
price, the initial buyer is assess
ed damages to compensate the
government for the loss.
Some companies remain in
trouble despite improvements
in price and despite a rise in the
government’s timber receipts
since the depths of the wood
products industry’s recession in
1982.
In the past decade, the
volume of timber under contract
to companies but still
unharvested has increased
sharply — from 10.3 billion feet
at the end of fiscal 1974 to 18.3
billion 10 years later. Forest
Service figures show.
The Eugene-based Willamette
National Forest has $20.3
million in defaults, or almost
one-fourth of the region’s total.
The greatest problem is with
eight sales bought for $12.3
million by TOMCO (Try Once
More Co.), a Sweet Home
veneer producer that went out
of business in 1982.
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