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About La Grande observer. (La Grande, Or.) 1959-1968 | View Entire Issue (Nov. 9, 1959)
I 'Well, Thanks Anyway'' j. fSp fpili f' .ifil I l v- '.-V, "' Nus.j-ij EDITORIAL PAGE LA GRANDE OBSERVER i Monday, November 9, 1959 "Without or with friend or foe, we print your daily world as it goes" Byron. RILEY ALLEN, publisher Grady Pannell, managing editor - George Challis, advertising director Tom Humes, circulation manager Per Centage Is Improving, Harold Vlien Harold Stassen was young lie won three elections all for ovcrnor of Minnesota. Since that time lio hasn't won any. Hut not U-cuuso ho didn't try. Three times he tried to win the nomina tion for president but failinjr this lie decided to try for sonietliinji smaller and ran for governor of Pennsylvania. That didn't work, either, so he stepped down another rung and ran for mayor of Philadelphia just recently. He lost. Hut is Harold discouraged? Not ho you would notice, it. says he will try again, .sometime. In our humble opinion several of our city couiu'ilmen would le glad to creat a vacancy for him, if he chose to run for that office in La Grande. Steel Competition Gels Tougher While the United Steelwoi kcrs and to our product. the fitevl industry wrangled over contract differences, this country continue to lose steel markets abroad and foreign steel iniHrts cut deeper into the domesl it market. A Bxke.sman for the American sleH industry estimates that in the last few years the equivalent of SO.nno jobs have leen lost in our steel industry because of the increased foreign competition. A numU'r of factors have contributed to the weakening of our competitive posi tion in world steel markets, not the least of which have been the rapidly rising employment costs of American pro ducers. A. Holmes Fetherolf. writing in the September issue of the magazine Steel ways, supplies the following figures: Average total hourly employment costs of our steelworkers in li)".7 stood at $3.22. Comparable costs in West Ger many were $1.01, 81 cents in Italy and 16 cents in Japan. Over the life of the three-year 19o6 labor agreement, em ployment costs here have increased SI cents an hour. Wage costs, Fetherolf relates, is the dominating factor in American produc tion. A national indeiendent survey in dicated recently that after exclusion of all taxes lalxir gets 83.2 cents out of every dollar of income generated in the national economy. Our steelworkers are among the best paid employes in the country. High wage costs are just one of sev eral reasons American steel makers are losing markets. Kuropean and Japanese steel mills extend liberal credit terms and sizeable price concessions. And for- eign steel is often of comparable quality This country is largely responsible for the growth of foreign steel industries since World War H. Through technical and financial assistance we have helped rebuild, modernize and expand war flattened or time-worn production fa cilities in llurope and Asia. Not only have we donated money and skills for building mills abroad, but we have also shown our allies how to oper ate their new facilities. We have export ed our know-how. Prior to giving up this information we could manufacture steel at competitive total costs despite higher wage rates. This edge is gone. Consider that more of Europe's pro ductive capacity is geared to the export market than this country and that some Kuropean governments institute more liberal tax practices than ours and you begin to see what the American steel in dustry faces. steelways quoted a steel executive as saying: "!oth wages and prices are subject b competitive limitations. . . . lioth labor and business can price themselves out of the market with distressing results labor with a high rate and no job, and business with a high price and; no sale . . ." The answer to meeting foreign Com petition in steel production lies in the direction of improved technology and efficiency and at the snme time con taining costs. It is up to the steel indus try and the steelworkers to put their bargaining house in order. The alternative is losing more markets and coiilieiuently more jobs. Price Supports Under Madison Ave. Fire m . . ... .1.. ... ivice in as many aa.vs lecenwy wc have received envelopes from a big New York public relations firm, each one con taining an attack on the present farm support price program. The name of the agency is carefully printed at the top of the letter. There is no hint as to the identity of the cli ent paying: for the attacks. Now, most everyone agrees there are some serious faults in the present farm support price program. Most farmers don't like it much better than Madison avenue l,is. I;ut the situation is not going to In? helju-d by any slick New York public relations effort to discredit the entire program. And we question the sense of ethics 'f an outfit which fails to give the name of the person paying for the attack. Win n i-.jid hog meets road hog, that's liice! DREW PEARSON SAYS: TV Quiz Probe Considerate Of Big Network Executives WASHINGTON Most import ant question in the dramatic rev elation of riKHcil TV quiz pro- jjrams is: Were the big networks responsible? Did they violate the trust given them by the U. S. government clearly defined by law that TV Millions must be operated in the public interest? How much did they really know about the deceit which President Eisenhower has publicly blasted and has asked the Justice Depart ment to investigate: So far the Harris committee has been most ron-iderate in the def eience paid to network executiv es. A CBS uce president and gen eral attorney, Thomas K. Fisher who was called, swore that CBS knew nothing about rigged pro fcrams. Mr. Ki-hcr has also de nied my column stating that in March l!).r)8 CiiS discovered that contestant Wilton Springer had been given the winning answers on the "SH .000 Challenge," yet did not act until September of that year. However, Mr. Fisher admitted under cross examination by con gressmen that it was CBS techni cians who rigged the machine in the "Dancing Decimal" TV show. Fisher also admitted that the ma chine was rigged in order to keep contestants from earning too much money. Fisher was an urbane and contrite witness, full of apolo gies for the network's oversight. Looking bacK, ne saia,- i am sure that we would and could have dene more. He did not explain the fact that the president of CBSTV, Louis Cowan, was the originator of $M,IKK) Question" and $64 000 Challenge, therefore must hive known a great deal about their operation. 2 A. M. Phone Call Some light was thrown on CBS's knowledge of quiz-show rigging when Arthur Cohn, Jr. of New York, testified before the Harris committee. Cohn is the contestant who wrote 20 let ters to Kevlon and all sorts of other people in March 1958 when he found that Wilton Springer had been given the winning ans wers on the "SIH.OOO Challenge." "Did you contact any new spa pels regarding this?'" asked Rep John Bennett, Michigan Rcpubli can Nut until Wednesday," replied Cohn "ljst Tuesday at 2 o'clock in the morning 1 was awakened by some gentleman from the New York Post. Did I read Drew Pear son? This at 2 o clock in the morning. At first I was very Iriglitened because 1 thought someone died or something. I aid 'I not only didn't read Drew Pearson but I am gong to hang up on you.' Then he said, T.et me read vou a few paragraphs.' which he did. From then on the phone never stopped ringing. Drew l'earson somehow or other got hold of the letter after a year and a half." At another point, Mr. Fisher's name entered the testimony "Mr. Cohn." asked committee counsel I.ishman, "did anyone onnccted with TV CBS program isk you any questions concerning this incident?" Cohn: "Yes. Someone I would not he a bit surprised if the name was Fisher called me about the time 1 went to the D.A' I.ishman: "About what time was that.' Cohn: "1 don't remember. It was in the spring or summer. I think it was the summer. It was the summer." (the district at torneys investigation began the .summer of flftS.) I.ishman: "When Mr. Fisher contacted you, what did yuu say?" Cohn: "He wanted me to come to a meeting of which Mr. Spring er had been invited. I said 1 was adverse to going to any meeting.' but 1 would ask my lawyer. ln- tead. 1 called my lawyer, mv brother-in-law. Franklin A Gold water, of Rochester, New York, and I asked him as a favor to me to please call Mr. Fisher direct ly." I.ishman: "You never attended a meeting with Mr. Fi-"cr?" Cohn: "I never did " Ij-hman: "In ycur talk with him. did he ask you am questions concerning the incident'' " Fihr Smd to Know Cohn: "I don't recall. If I re member correctly, and this is just a guess, he seemed to know all about the incident. I do re call clearly now, because I re member that same moring Mr. Abrams called me, would I please go t" CBS and tell them my stor'' At the time I was unem ployed, and to start making trou ble and go to CBS and all, I knew it would only cause me dif ficulties." Mr Abrams is George Abrams, then vice president in charge of Ret Ion advertising. I.ishman: "What did Mr. Fisher say to you when you told him what happened?" Cohn: "As I say, I don t think I told him what happened. In ether words, Mr. Abrams called me first and Mr. Abrams did know the whole story as I told you. Lishman: "Did Mr. Abrams tell you that he had already been in touch with CBS?" Cohn: "He must have, because he almost insisted that I go to the CBS meeting, mostly, as he stat ed, to protect myself, to tell my storv. Mr. Springer was there and was going to be there, and I imagine E.P.I., and I am gues sing it will be a very cozy story. F..PI. referred to Entertain ment Productions, Inc., the com pany which was then handling the $64,000 Qusetion and Chal lenge. Congressman Peter Mack, Illi nois Democrat, then came in with a question. Mack: "You said that you thought Mr. Fisher seemed to know all about this. You mean he knew all about what transpir ed in this particular case involv ing you?" Cohn: "Yes, I am a little nazy on it, but it must have been so because Mr. Abrams, of course. was told the whole story and that particular morning he was beg ging me to please go to cbs. mc must have told CBS the whole story." REMEMBER WHEN . . . 2.i years ago. Eastern Ore gon election returns saw llockott elected as state legislator from Wallowa County, with Christman reelected district attorney and Harmon as county commissioner B.g plans were underway hen fur Armistice Day festivities. The schedule included football game by Eastern Oregon Normal, a veterans parade, dances ,m,i lunch eon. The local American begun was sponsoring many o: the events ... 15 years ago. Republicans scored many wins throughout Ore gon despite landslide o'e for FDU who was seeking improve dented third term. In ion Count v however, went Democrats Ralph Jones. I.a Cr.ir.le llh School principal, addressed the weekly luncheon meeting of the Rotary, describing the rapid gains being made in state public school education. In Imbler. two women won dec lion seats on the city council They were Mrs Edna Jordan and Mrs. Garnet Ruckman. Seven Persons Killed In Wreck Of 4 Vehicles . HOCHELLE. 111. 'UPIi -Seven persons, six' of them members of one. family, were Kinea iouuy m a fiery wreck of three trucks and an automobile. Two of the trucks were tankers. One. loaded with soybean on, caught fire and traffic on busy U. S. 30 was blocked more man three hours. The accident occurred four miles west of the U. S. 31 intersection, which is 11 miles south of here. The dead, identified by a luner- al director were Mr. and Mrs. Earl Martin, Prophetstown, 111.; their son and daughter-in-law, Mr. and Mrs. Richard Martin; their daughter and son-in-law, Mr. and Mrs. Willard Hartshorn; and the Iriver of the burned tanker. Ed ward P. Hirsch, Clinton, Iowa. The elder Martins had farmed three miles northwest of Prophets town for years and had retired and moved to town. Their son and his wife farmed near Lyndon and the Hartshorns farmed near Rock Falls. They all were pre sumed en route to visit another daughter, Mrs. Frank Maher, in Chicago, about 70 miles east of the scene of the wreck. Another truck driver was in jured and taken to a hospital at Amboy, 111. He was identified as Robert L. Tankersley. Chicago, driver for United Parcel Service. News Briefs BAGS FIRST WHALE LONDON UTIl A Russian whaling fleet led by the world's largest mother ship "Sovetskaya Ukraina," has reached antarctic waters and bagged its first whale. Moscow Radio reported Sunday. ASKS JEWISH PRESSURE NEW YORK l'PI Label Katz, head of B'nai B rith. called on U. S. Jews-Sunday to bring strong pressure on Russia to re move restrictions on Jewish cul tural and religious activities. Katz said no special privileges were being asked for Soviet Jews just the right to continue their ages-old traditions. ROB MARQUIS AGAIN BIARRITZ, France HTP Thiefes struck at the Riviera Vil lia of Spain's Marquis de la Sola for the second time in eight months, getting away with M.iWO in jewelry, police reported Sun dav. The first robbery netted 510.000 in jewels WINDOWS Complttt Unit To Your Order mitt's Cabinet Despite Madison Avenue's Look Of Prosperity, Business Slows ELMER C. WALZER UPI Staff WrrbM- NEW YORK a'PI i Things are not all hunky-dory on Madison Avenue and its environs despite the seeming prosperity of the well-pressed gray flannel suits. As one executive puts it. adver tising agency business has to run fast to stand still. And those fat expense accounts? all that glistens is nut gold. The whole trouble seems to hinge on that new medium tele vision which one agency head calls an "ogre". And another remarks that if he could convert his television billings to other media, annual earnings for his agency would skyrocket. And another obstacle in the path of profits is the collateral ervice which must be included these days research, marketing and merchandising counsel, public re lations, and others. Frederick R. Gamble, president of the American Association of Advertising Agencies, tells (hi story of "advertising agency costs and profits" in the November Decembers Harvard Business re view. Gamble bundles up the indus try's record over the years, spots the difficulties, and lays down some adjustments to bring the industry out of its profit lag. Profits Hit Low-Point "Last year as national adver tising volume hit an all - lime peake." he says by way of in troducing his theme, "the collec tive profit margin of A AAA agen cies i representing three-fourths of total agency volume) dropped to its lowest point in 20 years '' Association members in be' showed a rise in their volume of business but their ratio of net earnings after taxes fell from 4 II per cent in 1957 to 3 23 per cent This compared with a ratio of 6.07 per cent for business service companies generally. There has been a downtrend since 1944 when margins reached 9.03 per cent, he found. In the period from 1949 to 1958. national advertising volume climbed from $2.97 billion to $6 33 billion. Net profit for the agencies as a percentage of sales ' billings i was a mere 0 59 per cent in 1958. In 1950 it was 1.16 per cent. One of the big cost producers, research, these days involves not only improvement of advertising but also acceptability of products, testing consumer preferences, studying composition of markets, and ascertaining consumer needs and desires. Television commercials for one agency resulted in production of more film than M.G.M. uses in its feature movies. Big St.Ht, Payrolls To do all these things for their clients the agencies have had to build up big staffs of experts, sending payrolls skyrocketing. They have had to move to larger (g arters at costly rents and long lt'rm leases. There are many other troubles, including clients' rejection of ad certising plans, raids of staffs by c'.her agencies, slow collection of commissions, and fluctuations in QUOTES IN THE NEWS United Press International SAN FRANCISCO Soviet Premier Nikita S. Khrushchev, In a letter congratulating San Fran cisco Mayor George Christopher on bis re-election: "I am very glad that my opinion coincided with that of the citizens of San Francisco." WASHINGTON Dr. Alan T. Waterman, director of the Na tional Science Foundation, accus ing the press, radio and television of underrating the public's intel lectual interests and needs: "We will not create a true cli mate for excellence in an atmos phere in which dishpan hands, yellow teeth and unpleasant breath are regarded as disasters." PARIS Foreign Minister Couve de Murville, asserting that France's veto of an early East West summit meeting proves President Charles de Gaulle is more optimistic than other West ern leaders: To say that the first opportu nity i for a summit meeting) must be grabbed is to say , that the future is unsure and we are walk ing on eggs." LOS ANGELES New York Mayor Robert F. Wagner, discus sing the Democratic vice presi dential nomination: "Naturally I'd be interested in being nominated. Anyone who says he's not interested in nomi nation for such a high office is either kidding himself or the public." volume. Gamble admits expense ac counts are large, dui mere are no comparisons with other indus tries which have them too. They are reported to Gamble's associa tion and he finds they are about on a par with the cost of station ery and similar office supplies and only a smalt traction aliove the cost of telephone service. 'The dependence on a rapidly expanding economy," says Gamble, "makes profits in the agency business peculiarly vulner able to an extended recession or even to a long periou of stable advertising volume. . . 'Agency managements are shooting for a degree of efficiency that will enable them to operate at reasonable profit levels even when their volume advances slow ly or stands still." It s a case of reducing costs. And also one of telling the clients their troubles. Gamble says. A client with high billings isn't necessarily automatically profit able to an agency, he says. Ike's Trip To Afghanistan Vital Move WASHINGTON (UPI) Presi dent Eisenhower's brief visit to Afghanistan next month will take him to a sensitive area where the United States and Russia are waging a vital dollars-versus-ru-bles battle. . So far the Russians appear to be ahead on points, due princi pally to their intensive and some what spectacular trade and aid drive in the past five years. But King Mohammad Zahir still hopes to preserve the pre carious neutrality of his strategic country. The King was reported elated by Eisenhower's decision to stop in the capital city of Ka bul for a few hours on his way from Pakistan to India during his nine nation lour. American officials hope that Eisenhower's Visit may help the United States regain some of ground it has been losing in Af ghanistan. Ironically, the only airport near Kabul which can handle the Pres ident's jet plane was constructed by the Russians to take care of 12 jet bombers they gave the Afghan air force, along with 12 Soviet pilots to fly them. Ike Plans Nine-Country Visit Throuah Eurooe. Middle East i i WASHINGTON UPI Presi dent Eisenhower today announced plans for a historic personal trip to nine countries in Europe. Asia and the Middle East next month. The President told his news con ference he will leave Dec. 4 and visit Italy. Turkey, Pakistan, Af ghanistan, India. Iran, Greece, France and Morocco. This was a far more extensive itinerary than originally indicated. The tour will take 24 weeks. Eisenhower said he hoped that by this trip he would build, par ticularly in Asia, a better under standing of the United States, and, at all points of his jet plane jour ney, good will for the United States. His schedule, which will bring him back to Washington Dec. 22, will include three days in Paris. Dec. 19-21, for the Western sum mit meeting. On his way home from Paris, he will visit Rabat, Morocco. In Rome, Eisenhower will meet with Pope John XXIII, in addition to conferring with leaders of the Italian government. It will make the first time an American presi dent has visited a pope. Former President Truman, after he left office, visited the late Pope Pius XII. Other highlights of the Presi dent's news conference: He compared the results of the Congressional investigation into rigged television quiz shows with the 1919 baseball scandal involving the Chicago Black Sox. Eisenhow er said he felt no one in the ba sic television industry, from net work executives and producers down through the actors, would be satisfied until the whole mess is cleaned up. He expected a report from the Justice Department before the end of the year on wlyt. if any thing, the executive branch should, do to prevent repetition of the TV rigged shows. He said he favored building a second Panama Canal, but that the project was so complicated and required such study that it was not necessarily something he would ever recommend. He said he and Gov. Nelson A. Rockefeller of New York, at their recent White House meeting, talked politics all across the board but he did not recall that they came to any conclusions. He said most of their talk, however, in volved Civil Defense. He said the United States was NOTICE! For The Autumn Season langrell'S hitching post MUSEUM Haines, Ore. Opn Saturdays A Sundays ONLY. ( Have You Tried O'CONNELUS Irish Oatmeal Bread T' ? -Made from Imported Irish Oatmeal? i . i j puzzled by anti-American out bursts in the Caribbean. He said this country confidently hoped that not only Panama, but every other civilized government would make certain that law and order are preserved. 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