Obsfrvr, Ls Grande, Pre., Sat, Aug. 16 1958 Page 2
Evangelist Bill Graham Writes Of
Crusade That Attracted 700,000
rtP; I n I
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Entered aa Second Clans Matter at the Poat Office of
I Grande, Oregon Under the Act of Marou 8, It'
Whiskey Bill Battle
The Senate is being: asked to take a hand in what is
being billed as the whiskey "battle of the ages." The
House at the 1957 session approved a general tax
revision bill that would let distillers keep whiskey
in warenouses lor as long as 20 years before paying
the federal tax of $10.50 a gallon: The" "industry " has
; long sought this form of tax relief actually tax post
. ponement but some distillers are objecting vigorously
; to a provision of the proposed measure which they say
would give a competitive advantage to Schenley Iit
dustries, Inc., and to certain other distillers. '"
1 The story goes back to the early days of the Korean
war. Schenley, its competitors say, stepped up produc
tion of whiskey chiefly bourbon anticipating a shut
down like that of World War II. Other distillers fol
lowed suit, but not to the same extent. Thus, since the
shutdown never materialized, Schenley owns a large
part of the 33 million gallons of bonded whiskey near
ing the eight-year-old stage. ' ' i
: Since 1896 federal law has required that federal tax
be paid on whiskey, at the time it is withdrawn' from
the warehouse or at the end of eight" years. Competi
tors' now argue that next year Schenley will advertise
uand promote 9-year-old bourbon.. And within a few
"years Schenley would be bringing out of the warehouse
(. 10, 11, and 12 year-old whiskies while distillers which
i had geared their operations to the eight-year law
; would have no such stocks available. '
Of the Big Four domestic distillers. Joseph E. Sea
; gram & Sons, Inc., and Hiram Walker & Sons, Inc.
i have, as Business Week puts it, "fought the whiskey
! amendment as vigorously as Schenley has pushed it."
. Formsr 'Sen. Scott W. Lucas (D 111.), representing Sea
; gram, told the Senate Finance Committee, July 16,
that the language of the bill rendered it "nothing more
j than a private bill for the relief of Schenley."
; - Sen. Thruston Morton (R'Ky.), who candidly reports
that "the bourbon whiskey distilling industry is one
of the most' important to the welfare" of he people of
his state, has come up with a form of compromise. On
; Aug. 5 Morton told the Senate' he intended to 1 offer
. an amendment that would forbid "labeling, stamping,
! advertising. "or claiming "that whiskey was any age
' beyond eight years.
! The fact is, says Morton, that the public is wrong
1 beyond a certain point in associating age with quality
! in whiskey. "Some whiskies reach maturity in five
years," he avers, and most bourbon whiskey "is fully
matured in five or six years." After 20 years,, whiskey
deteriorates "to such an extent that no one would
.want to keep it in wood in bond for a longer period
of time."
Congress in 1951 upped the tax on hard liquor from
$9 a gallon to $10.50. This figures out to $2.10 a fifth.
Federal tax accounts for about '13 per cent of the price
of' distilled spirits at' the liquor store.
Federal revenues from distilled spirits in 1957 came
to $2.1 billion, down 6.2 per cent from the peak year
of 1956. And the Distilled Spirits Institute estimates
that state and local governments took in $587 million
on hard liquor last year. A final, sobering thought:
The tax bite on a cocktail made with an ounce and a
half of whiskey or gin comes-to a trifle more than 12
cents.
Note: Last year, evangelist
Billy Graham conducted a spec
tacular crusade in New York City.
It was by his own estimate the
greatest challenge he ever faced.
Now, he has completed a seven-
weeks crusade in San Francisco.
United Press International asked
Graham to tell in his own words
how, in this country, East meets
West in the spiritual sense. He
has, he says, found a greater spir
itual "responsiveness" in the West
than elsewhere in America, and
expresses the hope that "a flame
has bee kindled" there that. "will
not die but spread eastward
the months ahead."
By BILLY GRAHAM
(Written for
United Press International)
SAN FRANCISCO (UPI) A
few hundred yards south of the
city boundary of San Francisco
there is an indentation in the hills
known as "Visitacion Valley
The early Spaniards who named
it had a prophetic insight, for this
very spot has become the scene
of a remarkable "spiritual visita-
Barbs
: Some wives figure they could make real good use
of one of the golf clubs hubby takes to the course
every weekend.
Opposing Sides Work To Prevent
Segregation Clash In Virginia
By LON K. SAVAGE
United Press International
RICHMOND, Va. (UPD There
has been so much confusion about
What's likely '- to happen when
schools open in Virginia next
month, it might be worth while to
look into the situation.
It's serious, all right. It threat
ens to close several schools and
possibly several school systems.
It almost certainly will bring the
state government into fresh con
flict with the federal government.
There is the potential here for an
other Little Rock, althouch forces
on all sides seem to be working
feverishly behind the scenes to
prevent that. -
What's happened is that Arling
ton County in Washington's
front yard and the cities of
Norfolk and Charlottesville . have
been ordered i to' ',' desegregate
schools when classes open in Sep
tember. They have exhausted ap
peals from these orders.-
Has "Resistance" Laws
white school accepts Negroes, it
would be closed under one of the
state's ''massive resistance" laws.
On the other side is the kind of
federal court order that led to the
Army being sent to Little Rock
last fall. ' ....!
"I don't know what will hap
pen," said Norfolk Superintendent
J. J. Brewbaker. "I don't know
even what our position is. The
federal courts say you got to ad
mit these kids in school. The state
says we can't. So where are we?
Suppose one of the integration-
ordered cities should agree to
abide by the orders?
Under Gov. Lindsay Almond's
massive resistance" plan, he
would assume control of the af
fected -school district, reorganize
it and reopen it on a segregated
busis. He is talking now -in terms
of taking up the matter by indi
vidual integrated classes, how
ever, rather than entire schools or
districts.
Open Private Schools
If the state failed to get bv with
nut under Virginia law, if any the re-opening plan, the school
Ex-Railroad Machinist
Observes 100th Birthday
PORTLAND (UPI) A former
ailroad machinist John Edgerton
celebrated his 100th birthday here
yesterday and gave some credit
for his longevity to being "tender
hearted and keeping out of the
dirt."
The white - haired centenarian
was born in Crew, Cheshire conn
ty, England, and migrated to (he
United States 75 years ago. He
worked as a machinist for Penn
sylvania Railroad before traveling
to Mexico for a year for a similar
job.
He worked for Pennsylvania
When something goes wrong at the office why does
a man have to take it out on his family when he gets
home?
Side Glances
' 1 ..
fl-fg ' QIMIIiWIWun
"Really, Doris, how can you be so cynical about men?
Why, IW Had six husbands and everjr one of them was
Growing Commie
Activity Reported
WASHINGTON (UPI) The
II o u s e Un-American Activities
Committee is drafting a report
showing "patterns of Soviet espi
onage activity in the . United
Stntos." Chairman Francis E.
Walter (D-Pa.) said the public re
port to be released in about a
month will show that "Communist
colonizers, propagandists airti agi
tators are presently active in the
rapidly developing industrial cen
ters of the South."
again before coming to Oregon in
1906 to work for Southern Pacific.
Mr. Edgerton lias one remain
ing daughter of three, two grand
children, five great grandchildren,
and five great - great grandchil
dren. He does not smoke or drink,
except for tea which he drinks
frequently, according to his
daughter, Mrs. Grace Gardner of
Portland.
Mrs. Gardner said Mr. Edger
ton is scrupulously clean and ex
pects people around him to be
clean.
He gave this advice: "Be good
and keep out of the dirt."
then would be closed. Pupils
would be sent to some, kind of pri
vate school. If only a few pupils
were involved, they would be .ab
sorbed into other schools' and. for
the -time at least, that would be
the end of it. -
' At that point, however, parents
of the Negro litigants are expect
ed to ask the courts again to or
der the affected -school re-opened
on an integrated basis. That's
where the state of Virginia and
the government would be at a
"Little Rock-' crossroads.
One of the big question marks
in the whole Virginia situation is
whether private schools would
work. Even the highest state au
thorities are doubtful. If a consid
erable number of public schools
were closed, there simply wouldn't
be ' enough facilities and teachers
to meet the emergency.
Industrial Production
Climbs For Third Month
WASHINGTON (UPI) The
nation's industrial production in
creased in- July for- the third
straight month, climbing to a lev
el 6 per .cent above the recession
low of April, the government re
ported Friday.
The Federal Reserve Board's in
dex of factory and mine output
rose 'two points above - the June
figure to 133. -The . index is based
on-. 100 as 1947-49 average. ..
'i Produotion- increases were not
able among higher durable goods
industries; The board noted, how
ever, that industrial output last
month still was 8 per cent below
a year ago. ,
In the production reports the
board said improvements were
noted in private housing starts,
steel mill operations and in other
manufacturing lines. It said the
most pronounced recovery in re
cent months has occurred in tex
tiles, apparel, rubber and leather
products. -
Out of the confused puzzle, this fe?''ve-daty' ,
' By early August, the report said,
steel mills were operating 25 per
cent above their April-low. The
report -also revised upward from;
130 ito 131 the industrial produc
tion index number for June.
Factory and mine output began
rising in May, after hitting a re
cession bottom in- April, the survey-showed.
Meanwhile, there were strong
signs that . the Federal Reserve
Board believes that inflation rath
er than recession is the nation's
No. 1 economic problem.
The board made that clear
Thursday night when it authorized
the Federal Reserve Bank of San
Francisco to increase its charge
on loans to member banks from
1 per cent to 2 per cent, ef-
Algerian Rebel Losses
Released By French
ALGIERS, Algeria lUPD
French forces in Algeria killed
20,757 Moslem rebels during the
first seven months of 1958, the
French army said Friday. An ar
my spokesman said also 2,777
rebel guerrillas had been taken
prisoner between Jan. 1 and July
31. The bitter fighting has been
going on in this North African ter
ritory for almost four years.
is about the best way anyone can
put it together at the moment
The chances are that only a few
schools actually will be closed in
September. The students from
them probably could be absorbed
inlo olhcr schools. Before further
crisis, Almond could call a spe
cial session of the General Asscm
bly to re-wnte his strict laws, at
least to the extent of preventing
the mass closing of schools.
Norfolk A Test?
Norfolk might be the spot where
actual integration would first be
tested. The scliool board there has
said it will comply with the fed
eral court order and that it could
not "guarantee" complete segregation.
Although Arlington has been or
dered lo admit Negroes who have
been named as they were in
Little Rock to presently-all
white schools, the pupils will be
assigned under (he state Public
Placement Act. It is expected the
Negroes will be assigned to Ne
gro schools although this would be
in direct contradiction of the court
order.
Charlottesville may attempt to
get by with a new school district
plan that would put all Negro pu
pils in one district. -
Norfolk and Charlottesville have
their own pupil placement plans
under which Negro applicants will
have lo pass stiff entry require
ments. Negroes have challenged
the validity of both assignment
plans but they have so far been
upheld by the courts. A new test
of the Norfolk plan is due in fed
eral court this week.
Almond lias described the Vir
ginia case as the gravest crisis
since the Civil War.
This boost in the "discount
rate" reversed the . money-easing
policy the board adopted last
November to check the business
recession. i.
Tim other 11 Federal Reserve
State Levy
Unnecessary
SALEM, (UPI) Estimated rev
enues and surplus funds on hand
will make the levy 'of a state
property tax for debt service un
necessary, Carl W. Chambers,
State Tax Commission chairman,
has announced.
The special session of the State
Legislature . last October elimi
nated all slate properly tax obli
gations except for bonded indebt
edness.
Tax revenues for the fiscal year
1958-59 are estimated by the Com
mission to be down nearly 16 mil
lion dollars from 1957-58. Cham
bers said receipts from personal
and corporation income taxes
were slightly over 105 million dol
lars for the past fiscal year, but
were expected to drop to approx
imately $88,700,000 during the cur
rent year.
The decline in tax revenues
stems largely from rate reduc
tions of the special session, Cham
bers explained.
The general fund surplus esti
mated by the commission will be
$30,643,400 as of June 30, 1959.
This figure is almost identical
with the projected surplus upon
which the special session based
its rate reduction program.
banks are expected to follow the
San Francisco bank's lead and
ask the board for .permission-lo
raise the discount rates.
Letting the demand for credit
press hard against the supply has
been the board's way of trying
to curb spending and price boosts
in inflationary periods. During
the recession when it wanted to
stimulate spending the board in
creased the supply of money and
credit, thereby forcing down in
terest' rates.
Ecuador's Industrial Importance Swells
US. Shows
'i ,,, v .. . r
Decline In
Jobless Pay
WASHINGTON (UPI) The
government has reported that the
number ot Americans drawing
jooiess oeneius dropped to 2,342,
luu-a new low lor tnis year
in tne week ended Aug. 2. .
But the Labor Department in
dicated nt least half of the de
crease was due to workers ex
hausting their benefits. And it
reported the number of unem
ployed filing initial benefit claims
rose slightly last week.
The unemployment rooort Fri
day followed a separate announce
ment that the nation's industrial
output rose in July for the third
straight month to a point 6 per
cent above 1 the recession low of
la6t April. t .
The Federal Reserve Board said
its index of factory and mine
production climbed two points
above the June -figure to reach
133.- The- index uses the nation's
1947-49 industrial production as a
base of 100.
Government economists evalu
ating the July production report
were pleased by a -spurt in dur
able goods production,-which had
been hardest hit by the recession.
The overall report bolstered their
belief that the downturn hit its
low point in April.
The Senate Finance Committee
meantime went part way toward
meeting an administration reauest
tor a Doost in the national debt
limit necessitated by the recession
and- sepped-up defense spending.
The committee approved Presi
dent Eisenhower's request for
lifting the temporary debt ceiling
from 280 billion dollars to an all
time peak of 288 billion. But it,
limited the temporary authority
to one year instead of two.
Further, the group chopped two
billion dollars from Eisenhower's
request for an increase in the
permanent debt ceiling. The Pres
ident had asked that the per
manent limit be hiked from 275
to 285 billion dollars. The com--mittee
voted to fix the lid at -283
billion.
The measure must now be ap
proved by the full Senate. Then
it would go to a Senate - House
conference committee to work out
a compromise with a House
passed bill which granted the ad
ministration Its full request.
lion."
In the midst of this valley
stands a vast stock-show audito
rium known as the Cow Palace
where for seven, weeks it has been
my privilege to preach to nearly
700,000 peop!g.Of that number,
nearly 26,000 came forward lo
make a life's commitment lo
Jesus Christ, i
These cold statistics, however,
tell nothing' 'f 'the spiritual quake
that has at fcaVl caused a" tremor
in the San Francisco Bay area.
San Francisco knows something
about earthquakes, and the ' Cow
Palace lies near the- famous San
Andreas Fault.
There is another "fault" in our
major cities, San Francisco being
no exception. That is the "human
fault" the fact of evil: - 1
The basic problem that the
world is wrestling with is not the
hydrogen bomb or even commu
nism, it is human relationships
of the human equation.
This crusade has indicated a
deep spiritual hunger by hundreds
of thousands of people in Califor
nia. -
There were many obstacles to
the crusade that we have not
faced in other cities. The Cow
Palace is 12 miles from the cen
ter of town. There are far fewer
protestants here than in New
York. A tremendous percentage
of the people in San Francisco
do not claim any religious affilia
tion at all.
Thousands iOf people moved
here from the East, Midwest, and
South and have not bothered to
join a church. They had gotten
away from God. Sometimes they
left their morals behind, giving
rise to higher rates of mental
problems, alcoholism, suicide and
divorce.
Too often the balmy days in
California have been used for re
creation rather then church at
tendance. Although the churches here are
relatively smaller, they had par
ticipated in the crusade with
greater enthusiasm than in other
areas. I am sure this is because
the average minister realizes the
spiritual needs in California.
I believe the seed of a whole
new Christian generation has been
planted on the West Coast. As one
minister put it "A spiritual ex
plosion has taken place and the
San Francisco Bay area is await
ing for the dust to settle."
As one newspaper editorial ox-
pressed it "Christians have lost
their inferiority complex around
here." . ;!,r
I believe California is riper for
spiritual awakening than any
other state. There is a possibility
that a flame -has -been kindled
here that will not die but will
spread eastward in the months
ahead. There is evidence ihat the
people of California will respond
to -a warm, Christ-centered mes
sage. I have sensed a greater re
sponsiveness among college, uni
versity and high school students
here than elsewhere across the
nation.
A distinguishing feature of the
crusade was its accent on youth.
Each Thursday night for seven
weeks the Cow Palace was jam
med with teenagers, and there
were never fewer than a thousand
who came forward at the invita
tion, blocking the aisles.
These thousands of young peo
ple that marched down the ramp
seemed to be ' telling the world
that they would not be cozened
out of their spiritual birthright by
H-bombs or the Age of Space.
Many people have written ask
ing, what is the secret? I have
no answer except that this is God
at work, meeting the hungers,
longings, desires of a confused,
bewildered, frightened generation.
My message has been simple, bib
lical and direct. The basic mes
sage that I have preached night
after night is two thousand years
old.
It is the message that Christ is
able to transform the lives of in
dividuals in 1958 as he did in the
1st Century. J am convinced that
this is the message of hope to
which thousands are responding.
By ELMER C. WALZER
UPI Financial Editor
NEW YORK (UPIi Little
Ecuador which straddles the equa
tor and up to now has been noted
for Its bananas, cocoa, coffee and
panama hats, may be a factor in
oil' and minerals under U. S.
exploration. .
And Ecuador likes (he USA in
contrast with some South Ameri
can countries where recently Vice
President Richard Nixon received
bad treatment from Communist-
inspired mobs.
! Universal- Mineral Resources,
Inc., has contracted with Ecuador
for large - scale development of
the magnetite titanium beach
sands which stretch for more than
100 miles along the Pacific.
' Oil Industry Crowing
Several North American com
panies are, vying for choice acre
age in some of Eucuador's estab
lished oil basins. Ecuador already
is producing 3,500,000 barrels of
oil annually from shallow wells.
Among the companies active in
exploration in Ecuador are Stand
ard Oil of California through its
Ecuadorian subsidiary, California
Ecuador Petroleum Co., Pantapec
Oil Co., Carolina Oil Co., and
Anglo Ecundprean Oil Fields, Ltd.
Universnl's president, Lester
Renard, reports that interest in
Ecuadorean oil concessions tre
bled overnight following the Mid
dle East unsettlement. He said
negotiations involving millions of
acres are now under way with
one major U.S. producer with the
signing of a contract imminent.
Universal Mineral now has
more than 8.000 square miles of
moil concessions and applications
approved by the government of
Ecuador which, in an effort to
attract foreign capital, now offers
as favorable tax and currency
regulations as can be found anywhere.
The Universal contract was ne
gotiated by Universal Mineral Re
sources through its Panama sub
sidiary, the National Company,
Ltd.. with Kyanna Oil Company
of Kentucky.
The contract calls for the com
pany to pay six per cent of the
net dollar value of the ore con
centrate removed to the Ecuador
ean government for the first 10
years, 6.5 per cent for the next
10 years and 7.5 per cent from
the last 10 years of the 30-year
agreement.
Black Gold
The section leased by Kyanna
comprises less than one third of
the "black sand" shoreline held
under concession by Universal
Mineral. It is estimated that there
are more than 200 million tons of
recoverable mctalic concentrate
along these beaches. '
Ecuador which hasn't as much
land ns the slate of Nevada,
hopes the oil and mineral devel
opments will help solve its eco
nomic problems.
In a speech recently in New
York, Dr. Jose R. Chiriboga,
Ecuador's ambassador to the
United Stales said, "We feel.that
we are only at the beginning of
our industrial expansion. . . We
have all seen what happened in
Venezuela and we have every
reason to believe similar develop
ments are in store for Ecuador
over the next few years."
The fact that oil and mineral
concessions are going to U. S.
companies is seen as highly sig
nificant. President of Ecuador, Camilo
Ponce Enriques said at the time
of Vice President Nixon's visit
that the Soviet had made offers
of aid which included technical
assistance and establishment of
industries on long term credits
and tiny interest rales.
Strange As It Seems
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