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About La Grande evening observer. (La Grande, Or.) 1904-1959 | View Entire Issue (Aug. 5, 1922)
1 Ha dkattiie Ewtttng bs?ruw VOLUME XXV SECTION TWO LA GRANDE, OREGON, SATURDAY, AUGUST 5, 1922 M KM II Kit or ASS(K IAIKI) I'KKSS NUMBER 260 ii n i"? P ii i! Charles J. Dillon Railroads 1 aiKs on Representative of Railroad Officials Delivers Address in La Grande. (Charles J. Dillon, representing the railroad officials uf the country de livered an address in Iji Grande Mon day evening ut the citv hall to a large crowd. The Evening Observer here with nrints the speech in order that what Mr. Dillon said may be in the hands of everyone who is interested in railroad work. It is probable that many will disagree with some of his statements, but the fact that he repre sents the Presidents of all the rail roads of the United States makes his utterances of importance to anyone connected with railroad work. Edi tor.) I "The story printed in a Portland j newspaper, and the information given from one of the pulpits ol 1'ortland to in that period. Danger in Control. "The great difficulty in this coun try for railroads lies in the over whelming desire of the public through (jovernmental agencies, Mate or red oral, to control. The next chief trou ble grows out of thu erroneous belief that the nearer rates can be brought down to just one jump this side uf confiscation, tho better it will be for the public. Of course, this is the worst kind of reasoning. The truth is that the net return of every busi ness plant in the country will be meas ured largely by the prosperity of the railroads and their ability to trans port raw material into the factories and- take the finished product out the effect that the railroads are offer- promptly to the markets. This looks ing their men a basic wage of only 'S.W oer hour is absurd, ami untrue One has only to read the advertise ments the railroads are running ir the daily newspaper to see what the roads are offering the men. The ac tual truth is that the only place in which the 'ic rate will applv is in the south and southwest part of the country where it will affect precisely 6702 men, mostly negroes and Mexi cans." The foregoing assertion was made hv Charels Dillon, Assistant to the Chairman of the Western Presidents Committee, Association of Railway! Executives, in La Grande Monday ev ening. "The she emits, mt. union like common sense to me but there are a great many business men in this country, normal in every other rcspe.'t who cannot udmit this kind of con structive thinking. They seem to think that railroads, like the Govern ment, a I wave have money. In short, the public utilities of tin country, and this includes street cars, arc suffer ing from a new national psychology which finds expression in the belief that anything running on two rai It ought to be damned. startling figures showing what tho railroads actually do, or have to do in a few minutes. Tho gross earning in 1IH4 Were $1Im:iMi every 2u mm utes, while in 1921 they were $209, ..pTTy? v,m p-n fog pnff i fn-rr vn x TTnrnm-rmrj ! BABSONCHART OF BUSINESS juMmt Jw ' W J frN BUSINESS TODAY LM .; El L.J1 ' ..., . - (In n m niil. "mors receivine- 50-5 an hour in 84. I his was an increase of $2 per 1!M7. In 1H21. thev had been incieas- cent and it seemed to justify a liberal ed to 77.3. Under the recent decisions "Let me rive you a few rather of the Labor Board in Chicago, these reduction In rates. But here is the men arc to receive 7(..'l an hour. The ear laborers were receiving JJ7.7 in 1917, 7:t.O in 11121 and they are now reduced to (14.4. Common labor on the other side. The operating expenses 111 HrI4 were 5,44 every pu nunutc.i am the operating expenses in If 2 L were $17u,tio2, an increase 01 10( per track, known as 'maintenance of way'.lcent. The payroll of the railroads in received 11) 3 in 1 ! I T. :)7.7 in 1921, and; 1914 was every M minutes.-in they are now offered :i'i-7 an hour. 1921 i twas ?19(1,:179 every 20 nui fita'tion laborers received 22.:! in 191 1, utcs, an increase of 109 per cent. Most 4:l.(i in 1921 and are now offered a9.fi-: people complain of high taxes.' The Signal men received H2.8 in 1(117, (9 :i railroads are the heaviest taxpayers in 1921 and thev are now offered G4.:;.in America, much of the money they Stationaiy firemen and oilers were re-jcontribute in Ihis way being used to ceiving 21.8 in 1917. The Board in-( build higwnys nnd maintain them for creased their pay to ftl.fi last year 1 the use of trucks and motor cars which anil .luiy 1st the new wage was 4lti, "Under this new decision, the sec tion Foremen of the country will be receiving wages still 119-7 per cent higher than in 1915 and their wages have a purchasing power IIH per rent higher than in that year. All these wages are far above the cost of liv ing and above the wages paid in oin carry freight and passengers in com petition with them. The taxes of the railroads in 1914 nmounted to $5,159 every 20 minutes. In 1921. these tax es hail increased to $10,f2 every 20 minutes., an increase of lot per cent. This was $7!8,:n:l a day for taxes, or 5.4 cents out of every. dollar of reve nue taken in by the roads- It takes industries where the labor ik"- i money to lun railronds and nil this formed is comparable to railroading, money is produced by the public. 11 Cncler Government Control. the loads are to be efilcicnt, if they "In times like these, it is not im- are to i;ivc good service promptly, noitant to discuss what happened tolthey must be prosperous. If they are the railroads during the period ot to extend' their lines and buy, new Government control. We are not es-1 equipment, they must have new money, nrcinllv concerned now with what Mr. Expenses usually arc paid out of rates, M.-Adoo did or did not do. It is ju.-u I but iniproyenincts coine from ne. as true that business men jihogld not I capital. ., lhts cannot be attracted to think of thr railroads- of today from j invest, in railroads unless the return the' basis of" what thev did nr did not is adequate. An adequnto return ;.i do twentv years n"0.' The manager the wages of capital, and capi a is of these roads in 1922 should not beins much entitled to wages as labor, blamed for a condition in transport!!-j ,1 heodore , '' , ihe Oilt- tion over which thev have absolutely! 00k" in HIM that railroads could be no control, a condition created bv the I Successful, "ood wages could he pall war a'ld bv Federal regulation. They find good service given only when cup-, e-e doine their level best to conduct itnl was assured a fair return on if. these properties effecientlv and as I investment. If the flood of regulatory economically as possible, at' the same legislation is to continue, management time Irvine to remember the rightsiof our railroads as private properties of the stockholders, as well as those ' nnot be expected to function. Ihere of the public. It is not a crime, the arc more than 100 bills before ton public should know, to pay dividends: press today seeking to control the,, occasionally, although it is becomin r railroads in one way or another. 1 her.. extremely unusual. .There are 201 ,aie more than 4,000 laws on the Class 1 railroads in tliis country. Of statutes for the same Purpose. We. th number, just 14 made per conl have the lnter-Mate Commerce Com er better in 1921. Some persons be-' mission ill Washington to sr.. what lieve that if the railroads do not earn I the income sha I be. We have Ih j fi ner cent, the Government will make I United States Labor Board in Chi irond the deficit. The -uninformed cago to set the wages and the wo,k L.1.11.. i,. n.i .1,;. nrnte,. The! mg agiecments. We have the legii- K, .,,..,nte the rnilroads have orllatures in 48 states to make laws ay ever have had since ncinemner. i:fo, is a guarantee that if thev earn more than i per cent they will have to divide it 50-50 with the Government cry two years seeking new control. We have Boards of l'ubiic Utilities in 44 or 45 suites all making rates and regulations and rules for the rail- and finally we nave Longreiis 1. 1 ...v. .- roan: .-riiu-imii-i. mil '"v ......... v.. . , ostensibly returned to their owners, ln ""n1"'1 ."""' ."" ma ked hr end of the period when, hole bujiness. Obviously it is ,m . .. . ' ., .. .. ..1.1 i. 1.. ; iiossiulo to have sensble and satisfac "'T' "".'. "I i.rv operation of railroads with all " SAYS CORNER IS is drawn and irenoriil eonrideneo hn: heen resttired." 'I perscmnlly believe' concluded Mr. Hulhson. "that the pres ent market is little over half way t the top. General Uusiness eontinuea to im prove. Ihe index of the Hahsoncharl reflects an improvement of 2 per cent since last w'ek and stands at 9 per cent below nm-rnni, The highest point since January, 111. HOW TURNED vincent will IM1LU qnnniTHrcnnnc: UIIUIl I L LIUUUU (jlrcat 8ta1i.stici;ui in His O'j survcr Coiiimtinicatiou , x Urines Cheer. OPTIMISM JUSTIFIED IS HIS CLAIM J0W J)e(inite nnd Substantial .Business Ix ecu very lioi'lee ted in the Ninth Annual Conference. (By Aflitoclatct Presa WKI.Lf.Sl.Ki' 1IJLLS. Mass., All '. The hiph Hrht of the Ninth An nual Wellchley Conference now meet nip; here for the discussion of condi tions and business problems, was reached when Uoer W. liabson an ncunced a definite tin n in business and showed why fundamental condi tions indicate definite and substan tial business recovery. Standing before a Babsouchart twelve feet hij;h and thirty ftet lon Air. Habsotf explained the situation. ''I have been waiting for over two years u. be able to announce that th most drastic depression in liusineiis history has spent itself. Kundame'i tnl conditions finally indicate that a solid foundation is ready for general and substantial business improvement. "The white line that I draw today divides the area of depression in half. Statistically it means we are at Uk' exact bottom of the cycle. IVactical lv it means that business will pick up this Jail and that it should continue to improve for the next two or three years. "Ti-chnically, the business evele is composed of the four succeeding cyc les of Prosperity, Decline, Depression and Improvement, but the average business man experiences but two con ditions. Kithei' sales are increaini; and business is fine or they are fall ing off and he is in deep depression. His attitude changes, not as we pass from a period of prosperity over trV; X Y Line into a neriod of depressin below, but as the white iics ar drawn wnicn nivuie these areas when ousi- ness changes its direction. Whon we had completed half of depression in the middle of 1!MM busi ness hf tran to iinnrovn and husines-; men went into a state of psychological (Ity Aioiociate Preas) HALE.M, Auk. 0. Governor Olcott annnuncei that he has appointed Sid ney ii. Vincent of Portland as state exhibit an"nt to succeed Airs. Winnie Ptiaden, wtio resigned to take up a new position in Seattle. M: Vincent is at present manager for the Oregon tourist and information bureau nnd his appointment as state exhibit agent means a virtual consolidation of tho.t two state activities. Mr. Vincent will have no additional salary for his work and consequently the salary of $l?0( a nionih which has been paid to the ex hibit manager will he saved by the consolidation. 'Pefore making the appointment the governor discussed matters in connec tion with the consolidation with Les lie Itutler, chairman of the slate tour ist and information bureau, and W. ft. Ii. Dodson, general manager of the Portland Chamber of aTommerc'.1 Itoth of these men expressed them selves as highly favorable to the move! nnd Iw.Movc.l tliiil. il wmiM r.-siiilt In efficient working for both of the (k- " was NEW SHIP CAM. IS ADVOCATED Two Way Canal Deep -KnoiitfbJur Ocean Steam ers lu (io to Chicago .Feasible Says Engineer. CHICAGO, 111., August 2. A two way Hiup canal butweuii Lakes 'J peuor and .Michigan, deep enough" loi ocean bteumcrs, couiud he built ut a reasonable eor,t and would divert to this route and to Chicago ut tens', seveuty-tive percent of ine loniiagc which now got-.i through Sauit Sic-1 Marie, according to U. Chaso Lcni-! non, n Chicago engineer. j After surveying the territory' through which it was proposed to 1 build such a canal, Air. Uciusou said that the best place for thu cut-uf t j route would be from a point near Au Train, Mich., on LuKo Superior to the' headwaters of tho bay north ol Ks-, cauaba, Mich., on Lake Michigan. I Not Knough Water. j it was pointed out that any ship canal from Lake Michigan south lo' the Culf of Mexico would rcMiiiio' more water than Iake Alichigan could at present simply. As au example4 the engineer showed that the Panama canal woud be useless wiLhout the artificial lake which keeps-the canal full of water. And Lake Michigan, he said, is shrinking. Since the gov ernment began to Keep records, the: surface ot the lake has been lowered, several inches. Half a century ago lid to be slightly le.i They icceive much water but have no surface river outlets. It is Mr. Den ison's belief that these lakes have un derground outlets into Lake Su perior. The supply of water from Lake Su perior and the smaller lakes that aro uhovo and surrounding it will, be practically inexhaustible, but only ns long as the large tracts of forests are allowed lo stand. The future generations, it was stated, will suffer in every wav if "this selfish genera tion is allowed to rob the earth of one of its most valuable resources." Mr. Denisou said this excessive water supply gives Lake Superior much more than it needs, nnd in cer tain seasons the oversupply goes down thromrh Sault Ste. Almrio into Lake Huron in large quantities. "All of this water should come down the twent v-one foot incline into Lake t - .Michigan nnd would do ,so were it not for a .solid rimrock or basin edgo which holds it back," he continued. "This rimrock starts on this surfuce at a point n short distance west ot Marquette and continues east tJ Sault Ste. Marie. A low place in tho rimrock at Au Train makes thU point the most desirable spot to be- gin the canal." Shallow Benches Scarce. The engineer's observations showed, that there are few shallow beaches around Lake Superior except m hays, channels and small river mouths. Ninety-five percent of tho shore is deep water one hundred to five hundred feet from land, and con sequently does not givo good footing for breakwaters much further out. At tho proposed starting point tha soil is light and sandy for slightly more than two miles south from Daka Superior, averaging ten to fifty feec above tho level of the lake, the re port shows. The next three miles are of rimrock, fifty to seventy-five feet above the lake leve, and covered with a light, sandy soil. South o the rimrock the land slopes down for a distance of more than a mile to about four mites of low, swampy land from which a small river runs to headwaters of the Escanaba bay. "This Lake Superior und Michi gan canal would not cost more than $ UMW0.000 as no expensive dam Would be necessary," Mr. Dcnison said. "This Hiiimrock' and . locks would form tho dam. The extra wat er at the locks could be used for elec tric generating and this, together with the tolls on boats and freight going through the locks both waya would easilly pay the canal cost and operating expenses in ten years." ' The engineer proposed that tho work he done in the summer and es timated that it would take two or three sumniPix, as there would oo great difficulty during cold weather He pointed out that from Lake Mich igan boats could into Lake Cal umet for an inner harbor, and if the Illinois drainage canal wero chanced for boats, thev could go thence to the Mississippi river and down to the Gulf of Mexico. Not to Be Forgotten. ItPineinber that the opportunity of a lifetime must he grasped during tha lifetlnio of tho opportunity. of) nnrlmonlc. Th.. tiwitli.f u 1-r.m-iin in lllan (.'U ICCl UIH1VO U1C SUI1UCU tl. t.iu t-,tn until ,n.h liitm nu iho tile Atlantic OCCllh U M IS IlOW Mlid I tie Jiiue more man oin icei aoovo pegislature may miss upon the futur of these slate activities. STAY YOUNG, KKAI) Til K NKWSPAPFJtS. (My AsHociutud f'rtHtfl) LONDON, July lit. (liy Mail. A retired member of the British bar. Sir Harry Poland, hale, hearty, and still interested in life nt the age of HI. attributes his longevity and mental vigor largely to having always been a great newspaper reader- lie is very fond of taking long walks about London to enjoy the beau tics of the city, and recently he has chafed at the rains which have kepi him indoors. "Still op ecan obtain excitement enough to keep youne just bv reading the newspapers,' hft so.v "for we live in stirting times." the Atlantic According to Air- Dcn ison the greater "-u t of this silt ink age has tfil-.cn pace during the lust fifteen vears. "The water necessary for the Galf canal could be obtained from Lakv Superior," the engineer said. "Lake Superior is now nearly twenty -one feet higher than Lake Michigan, but tho bottom of like Superior goes down many hundred fwi beow tin surface of the Atlantic. i manv places in Lake Superior it is not cer tain that the bottom has been reached even at four or five thousand fe't. while Lake Michigan is comparatively : shallow in its deepest places. The; many smaller lakes in territory sur-j tiiiindinf I. like Superior an: one to I eight hundred feet above its surf.-tcf;. Time Passes BUT WE RENEW YOUR LAST FALL CLOTHES H'h a' mighty welcome economy when you real ize lliiil we, as eleanei's, can restore Hie clothes you wore last Kail ami Winter and briny; them hack to their original newness. In these days of thrift, such economy is truly well worth while. Xo only will the savings he Kriitirying to you, hut the method of putting new life into yi'iir ariiieiils will he satisfying as well. (Jet the entire family's easlol'I's together from a year ago ninl let us estimate with you oil the eost Cor cleaning and repairing. You'll' then "realize ! lie great savings. The Wardrobe WOOD W. BERRY Dry Cleaning Specialty ! 1 .w. i,i form of rnnt.r..l som"! l'rsp;rity almost over niirht. Wo tv. r,7..,i i.,. M,.r, inhiT- those various Iiirms 01 control, som--'i -. i u:, .- !,.. n.l pxiipns v(!l"f which wuld it-quire trams to M. f; .. VrL 'V Lr fVovprn.iat the stare line and change hea.l- i mn Th,. ti,- nrperil.ed hv;1'"1'1" to conform to some craz" law. a;ntl2 C'lne'nion S-reUry Me.. was ri,ht when h. siness me i never nro.luce,. enouirh money to ray) esie,, B un-vvr .,.,. . ,' . -.i li . .u : J I On Ol THI 1 fUft'lSi I)U.- the aoor o n. in. " c. "iV should use their influence to havcthi. penses. and lea ve atWv fa r and ad I , . 8topplt or at least not to uate return for the o r n 19 I J The business of this couo- the average return . n t e.u "V-'" rv is already protected so thoroughly was per cent for all the n ihHs. hx j ((1 rf . nQ h .m t,v. -,.v s now estimate that wen wthvc which, of course, an increase in business in ol one ' . , - . billion dollars if the roads are to earn-Uu (, A 1-2 per cent on the investment thi1 year. The government has aprced to Fined for Violating rwotrmze ner ;nV as a i-ir ry-j Iire RuleS 01 UlC turn, if we can make it. teiwrn 5 3-4 per cent and th possible 3 1-2 nr ennt. there is a difference of 44tl.-i- OOO.nOf'.OO which must be made up in: BAKER, Aue. 4 Forests Near Baker -Three convictions but thinps weie aain headed in th. npht direction. "Karly in IIM.7 the p;mic set in and businet- L-t-nfidence prarticwl'jv lis appeared. We did not enter the actual area of depression until the fall of that same ear. "In April, l!NRt another white line marked the turning point and things boomed again until the long swing downward set in about June, I'.MO. This decline, while not drastic, kep business ipijet until the middle of 1114, when things a "am turned up ward. The war with it- feverish u--tivitv carried us on until the middip of 1D1H. when the actual Hm- ha 1 spont itself. Ilabid spcculati'in nnd soaring priees put thinirs up for m- other spurt but actual prouetton an I enmr wav- The re luction in rates of- for violation of the state and federal j nrteral business activities were vft- fective Julv I. amounts to ?4WP,wwi.-. fire laws have just Keen reported i nun 00 hascd upon th earnings of 1921. The wage reduction over which we now have a strike amount? to ontv $l:.",Mi07'Win.on. Here is another dif-1 ting a nmall fire in Greenhorn dis f..nne nf $2t'i.00O.U0t.0O. which mus; i trict through careless smoking. Han- Vf ninde up hv someone. I ger Ian Kwk secured the conviction- fire laws have just been reported to ,ening. Kort Supervisor. V . K HmsdeM. ( "The natural and inevitable r.-nrl ion John Howard of Austin was fined has kept bu-iiu-ss in mourning fr .j ami costs at i'rniric t-ity lor l- two and a half year The while line ju-t drawn mark. another turn for the boiler. Holiness again headed m the right tlirc ijon hot nctuitUv i' w at tho annual "e' return of only 4 'W per cent. T't nic redaction ff last .lanuarv 'n riniUural nr'wlu-ts vory cost I v for n-ftnr?l lrfd because th' S pr id'l'" '.irm a very largo part of trrnr traf fic. In Apnl this viir, 2'- -n th-.; western roads had riefis. Tti coun- r r. r. w. ih . !! :! ! k UT Hig Reduction tre Prices the Lowest in History Quality Never So High "The business of the first four! M Spangle and Pel Snowle of nnd you can go ahead wit h your plans . nths this year was a very large in- .North Powder were eacn Iineii f.j and . 1 he banker can ft'.w loan with better crease over the same period in i!2i. costs for burnm hru.n ouring inc!-oiifidence. rh(. huines man shoul'l closed season without a permit. Kan-; announce his new product, oi-n h( "rr A. if. An""! ami Mate w arden . pew territory, increa-e hi-; ail vert c ift V. L. Scott handled thrs cases. ling, and go ;'rr bu-i-H-s n-O. At the presc-nt lime the danger of "In sniic 'I the f"-t that tn fire in the wor:s nt very great and arket has nln adv d -counted Oiio tho public miit exTcis: the greatost , orovement n a larc extmt tn m ch T'j in th? forest with camp ftievifvetor can hold hi t":k: for the u' and ie Ubv of fire for any ptufiot J of a bull market which is ainut nf whatt-vcr. ... . rach-i sn! a("r the w;-it i.inr on n en k amp k Co. Diutrilmtora aajs3ssc !5i23sssa O O