PORTLAND, OREGON, TUESDAY, JANUARY 18, 1931 PRICE FIVE CENTS VOL. LIX XO. 18,768 Entrei at Portland Oron TVntnf f!r nn Second -OlnRS Matter ARMENIAN BRIDES 'BOUGHT AT AUCTION GAS RATE BOOST GIVEN CITY FIRM UHLUUM O LAI art OLrtl IN HOUSE IMPROBABLE REAPPORTIONMENT BILL IS EXPECTED TO BE BEATEN. NEBULA TRAVELS AT RlVTE XEVER BEFORE SEEX. WAT IS PAVED FOR GREATEST FABRIC MILIi IN COUNTRY. STARTLING OPERATIONS AT FRESNO, CAL., BARED, PARTY PROTECTION III PRIiRlMS ill Legislature May Take Up Modification of Law. nDCPOM'C CVTDA CCAT I HARDING HOT SLOW TO SET PRECEDENT Next President Listens to Every Job Hunter. . CELESTIAL SPEEDER SMASHES RECORDS MONTANA WOOL PLAN FORECAST TO SUCCEED WIFE OF NEPTUNE HUSKY AMD CURSES Tobacco Chewed and Pil low Made of Tresses. ANYONE CAN JOIN RACE NOW Return to Nominating Con ventions Is Proposed. .DEMOCRATS LEAD FIGHT Bourbon Loaders Declare Ruina tion Has Been Caused by System Xow in Use. STATEHOCSE, Salem, Or., Jan. 17. (Special.) Modification of the di rect primary law may be undertaken before the legislature ends Its labors. rb changes which are being dis cussed are intended to preserve the main and salient features, but at the same time, restore party organiza tions. Since the direct primary law be came operative, party organization in Oregon has gradually disintegrated and small groups of politicians and organizatons have supplanted the re publican and democratic parties. In a general way, the idea Is to authorize nominating conventions and have these party conventions promul gate party platforms. At present, anyone can be a candidate for nomi nation in the primaries and can Issue any sort of platform calculated to catch votes, whereas the party to which the aspirant claims allegance bas no control over tho candidate nor his platform. Democrats Start Agitation. Agitation for adoption for the direct primary started in the ranks of the democrats. Leading democrats at their state conference held In Fort land, January 8, confessed that the party has been almost killed by the direct primary system, as it now operates, and that the minority party will never regain its former strength until large, representative groups of democrats can legally get together and Indorse or nominate candidates. The direct primary Is something like the prohibition question: Opposed In secret, but advocated In public. Originally designed to put the skids under political bosses, the direct pri mary in Oregon has not only accom plished this end, but has gone farther and placed rollers under party or ganization in the republican ranks and has caused the democratic party to become more ornamental than ac tive. Party Ruination Charged. Democrats, although they elected a governor and a couple o United States senators under the direct primary, have discovered that outside of these notable victories, the primary sys tem has been the ruination of their party. It has reached the point where no one wants a democratic nomina tion nor will seek one. On the other hand, the republican primaries are cluttered with candidates, projecting themselves into the field at their own sweet will and responsible to no one, and, frequently, representing no one but themselves. It Is suggested and the point was outlined at the recent democratic state conference, that conventions be held; county and state conventions. Every precinct in the county Is en titled to one delegate, and these dele gates are elected by th voters of the precinct. Such, in a nutshll, is the idea of how the conventions shall be formed and the method of select ing delegates. 44)0 PntlncU In Molt noma a. In Multnomah county, there are more than 400 precincts. A man would know the sentiment of his neighbors, for a precinct Is simply a Neighborhood, and thus a convention formed of elected delegates from all 'fcrecincts would represent tbe senti ments of the community. In the precinct primaries, any one could be a candidate for delegate and the high man would win. The system is virtually identical with the selec tion of precinct committeemen. With a county convention of 400- odd delegates, no small group of poli ticians could manipulate it and such a large body would be the backbone of the republican or democratic party in tbe county. The state convention, would also consist of a large mem bership, say about 500 or more, which owuld make it as representative as the county conventions. State dele gates would be elected by the county conventions. These conventions would be in position to speak for the party and promulgate a platform containing party principles and issues. Rronlblllty ja Wanted. These convictions could either make nominations or recommendations for nominations to the rank and file of the party. Anyone with a desire to seek offices, could still file as can didate independently as is now the case. The whole idea is to place some responsibility for office holders on the political party with which they claim affiliation and to restore, in a measure, the party organization. In the tentative plans for amend ments to the direct primary law. there is the desire to get close to the people and obtain the expres sion of the party voters, so that the Concluded, a Page 5, Column JUL Substitute Would Keep Number of Seats as Xow, Sentiment Being- Against Increase. WASHINGTON. Jan. 17. Lines were sharply drawn tonight for a fight tomorrow to defeat the reappor tionment bill, which would increase the membership of the house from 435 to 483. After a final check-up, leaders an nounced that the measure as reported would be voted down decisively and that a substitute plan, holding seats to the present number would be adopted by a big majority. There seemed little sentiment for a larger house. Members from states which would lose representation de clared they would vote against add ing 48 representatives at a cost of $1, 500,000 a year when there is a de mand for government economy. The republican committee was re ported solidly against the increase, as individuals. Under provisions of the bill house leaders expect to be adopt ed, the increases will be as follows: California 3, Michigan 2, Ohio 2, and Connecticut, New Jersey, North Caro lina, Texas and Washington, one each. To make up this number without changing the 435 total. Missouri would lose two seats and the follow ing states one each: Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Mississippi, Nebraska. Rhode Island and Vermont. By this arrangement the south would gain in North, Carolina and Texas, and lose In Louisiana and Mis sissippi. The reapportionment bill, as now before congress and which, it is ex pected, will be defeated, provides for an additional representative from Oregon. Measures to redlstrict the state to provide for this additional representative have been discussed at this session of tbe Oregon legislature. With the defeat of the bill, the state will lose the expected extra seat. HARDING EVADES CROWDS P resident-Elect and Mrs. Harding Slip Quietly Into Cleveland. CLEVELAND. O, Jan. 1". Presl. dent-elect Harding slipped into Cleve land today on personal business and made his way about the Sown-town section for several hours unrecog nized. Accompanied by Mrs. Harding, the president-elect came from Marlon in an ordinary parlor car. So carefully had they laid thejr plans to escape attention that they got away from the railway station as quietly as ordi nary travelers and tonight some of their closest friends here had not learned of their presence. They later went to a hotel, where they dined privately and remained overnight. CITY VISITED BY SNOW Snowflakes, Big as Leaves, Fall for Time, but Rain Wins Out. The second snowfall of the winter visited Portland yesterday and, like the first,- it lasted only on the high spots. Snowflakes as large as leaves began to come tumbling from the sky about noon and continued at inter vals throughout the afternoon, with a gentle rain with and between snow showers. The day began with a nippy east wind, which soon gave way to the rain. Then snow, rain and sunshine followed in rapid succession. The maximum temperature for the day, however, was 1 degree above normal. SLIDES BLOCK LOG ROADS Mishaps Delay Opening of Several Clatsop Camps. ASTORIA, Or.. Jan. 17. (Special.) Two bisj slides which occurred on the line of the Lewis & Clarke rail road during the recent storms have blocked all traffic on the road, and the opening of some of the logging camps, which had planned to resume operations today, has been delayed. While a large force of men has been, working on the slides for several days, the track probably will not be cleared before another week has passed. CHILE IN NEED OF FOOD Ship Cancellations Cause Serious Shortage in Xorthern Ports, VALPARAISO, Jan. 17. A serious shortage of foodstufs in the northern ports of Chile has been brought about by the suppression of sailings of steamers of the South American Steamship company, owing to a strike of the crews for recognition of their union and increased pay. Steps are beir,g taken by the gov ernment to relieve the situation. Steamers of the National Steamship company also are tied up. BENEFITS WILL BE TAXED Veterans Must Pay on Disability Returns Over $1000 a Year. WASHINGTON. Jan. 17. Unmarried war veterans must return to the gov ernment as income tax 4 per cent of any disability payments they receive in excess of $1000 a year. The treasury department ruled to day that It could not exempt such ex service men. although those still 'in the service are required to pay only on amounts in excess of $3500 a year. War risk Insurance payments, bow ever, ue not taxable. TACTFUL HINTS AMUSING Knowledge of Offices Open Surprises Nominee. BEST MINDS OFTEN WAIT Every Candidate Seems to Have Bought Government Book With List of Places Available. THE OREGONIAN NEWS BUREAU, Washington, Jan. 17. When Wood row Wilson was inaugurated presi dent, or in the days following im mediately thereafter, Washington newspaper correspondents found di version in telling how this brand new Dresident had smashed some precedent. Possibly the most that he had done was to get up and make his toilet before breakfast, which with 'other folks is old stuff, but with a presi dent of the United States it meant "breaking a precedent." Now comes the story from Marion, O., that Warren G. Harding, who will take the office in seven short weeks from this day, has broken one very ponderous precedent. Mr. Harding, so go the stories brought .back" by those who have made recent pilgrim ages to the home of the next presi dent, has actually been mixing job hunters with . "best minds." That is, men, and, hayhap, a few women look ing for responsible offices with good salaries under the new. administra tion, have been breaking in to see him. Every Candidate Received. The real facts are said to be that the job hunters have almost crowded the "best minds" off the walks around the home of the next president. Not only have several gentlemen pre sented themselves ho were prepared to prove tfielr special fitness for the cabinet, but there were numerous candidates on hand to show why they, and they alone, were equipped by nature and training to take care of American interests in some em bassy or legation somewhere abroad. It is declared to be unusual for any man to be elected to the presidency possessing the patience to listen to the man looking for a job, but the story is that Warren Gamaliel Hard ing has been receiving every candi date who presented himself, and without any promises, sending each on his way with a feeling that his (Concluded on Page 2. Column 4.) IT MIGHT ' . T : i : " l hi I J J ( Irl I ll I ' A Ty " ' I . i I w . i fAMl t M WWW I I n . - .- I' i . ,7 M j ' - - I Dreyer Xo. 584 Said to Be Going Through Space at Almost 2 000 Kilometers Second. CAMBRIDGE, Mass., Jan. 17. The nebula Dreyer, No. 584 In the constel lation of Cetus, has broken all known speed records of the heavens. It is dashing through space away from the earth at a velocity of almost 2000 kilometers a second, the highest speed ever attained by a celestial object. This was the word received at the Harvard college observatory today from Dr. V. M. Slipper of the Lowell observatory, FlagBtaff, Ariz., in an nouncing the result of observations there. With this velocity Dreyer, No. 584, is showing its starry heels to the rest of the universe at a speed almost twice' as fast as the highest velocity previously known. Professor S. I. Bailey of the Harvard observatory said most stars move at less than 100 kilometers a second; runaway stars have been known to gain a momen tum of a few hundred kilometers a 3ecohd and other objects have been found to go 1000 kilometers a second. The highest celestial speed previ ously recorded was that of another nebula, 1180 kilometers a second, the Harvard scientist said. The nebula, which is so faint that It is not visible to the naked eye, flashes across the lower southern sky in the early evening. BEND MOONSHINER FINED Still, Mash and Whisky Are Taken in Raid on Home. BEND, Or., Jan. 17. (Special.) One hundred and fifty gallons of corn mash, an incomplete still and three gallons of whisky were seiaed at the George Taylor home here late today. when Deputy Sheriff Anderson and State Agent Nixon entered the place, armed with a search warrant. Taylor pleaded guilty in justice court to the charge of having liquor in his possession and paid a fine of $200. An extra supply of moonshine and a quantity of used mash, which Tay lor had stored in the basement of a house in another part of the city. also were seized. GIRL GETS $2000 MONTH 1 ., ' ., Daughter of Jacqnes Lebaudy lte- quires Six Servants. MINEOLA,' N. TV Jan. 17. Mrs. Marguerite A. Lebaudy, who killed her husband. Jacques Lebaudy, in January, 1919, today was allowed $2000 a month for the support of her 16-year-old daughter. She declared that sum was required to bring up her daughter in surroundings fitting her rank, adding that the girl should have a proper house and six servants. The daughter, she said, would re ceive at least $1,000,000 of her father's estate, estimated at from $10,000,000 o $30,000,000. BE A GOOD THING IX SOME Co-operative Manufacture and Sale of Virgin American ' Goods Key to Market Problems. SALT LAKE CITY, Utah, Jan. 17. Extension, of the movement started by Montana woolgrowers to find a mar ket for their product through the co-opeartive manufacture and sale of ( virgin American woolen goods was forecast today at the convention of the National Wool Growers' associa tion by President Frank J. Haen barth. Mr. Hagenbarth, commenting on the report of the Montana movement, said that it "paves the way for what may become the greatest woolen mill In the country and, if not that, at least serves strong notice on the middle men that the producers are awake to their methods." The 600 or more men attending the convention-are getting an opportunity to purchase suits, custom tailor-made, from virgin American wool at $38 net, a price which yields the wool growers from 50 to 60 cents a pound. Already many industrial enterprises, especially mining companies in the west, have given orders for clothing material handled by the Montana as sociation. The wool growers likewise an nounced their intention to take ad vantage of the federal licensed and bonded warehousing law and to es tablish such institutions in the prin cipal producing sections. H. K. Holman Jr., of the bureau of markets of the jJepartment of agri culture, explained the workings of the warehousing law. President Ha genbarth and other speakers gave their approval to the measure and ad vocated its application to the needs of financing the wool. W. S. McClure, former secretary of the national association, predicted that the growers will warehouse their 1921 clip until they can get a suitable market for it. Economic problems, headed by tariff considerations, formed the principal themes of today's discussions, the growers being urged by practically all of the speakers to adopt such business methods in the conduct of the industry as will put it in a po sition to survive the difficulties of existing economic codes. TWO KILLED BY BOMB Garage in Philadelphia Blown Up. Several Are Wounded. PHILADELPHIA, Jan. 17. P. H. Dean and George McKee, Inspectors, were killed tonight when a bomb ex ploded in the garage of the Quaker City Taxicab company. Several other employes were slightly injured. Chauffeurs have been on strike sev eral weeks. About ten days ago bombs were found in two cabs of the company. One cab was demolished, but no one was injured.' Several cabs have been stclen and wrecked. The two men were examining a car which had just come in and Dean picked up a cylindrical object, at which the driver shouted a warning and jumped back in time to escape injury as it exploded. The police have arrested 16 men. CASES. t I PAGAN GOD WAITS ON COLBY Strong Arm Initiation Attends "Crossing the Line." BEARS TREAT 'EM ROUGH Davey Jones, Imps and Mermaids Aid in Preserving Traditions on Trip of Secretary of State. (Louts Seibold. noted correspondent of the New York World, is now on a tour of South American waters and countries, ac companying Secretary of State Colby. What Seibold learns and what he observes of public interest he will tell in a series of letters, of which this is the first. These letters will be published simultaneously by the World and The Oregon. an. They wiJl be a feature worth following.) BI LOUIS SEIBOLD. (Copyright by the Now York World. Pub lished by Arrangement.) "CROSSING THE LINE" AT SEA, Dec. 16. (Special.) In the olden days when King Neptune boarded a ship "crossing the line" (meaning the equator) he brought along a queen clad in a robe of gold and wearing a rope of priceless pearls. In the pres ent day King Neptune brings along with him from the deep a queen that chews tobacco, smokes cigars, uses cuss words and yanks off her golden tresses (made of rope) to use for a pillow. That's the kind of queen that ac companied the good old pagan god when he boarded the United States dreadnought Florida, bristling with guns, when she entered his domain on December 15, 1920. No more motley or picturesque retinue ever attended the king of the sea than that which initiated 1242 members of the Flor ida's company into the mysteries of the ocean. Incidentally,1 it was some Initiation, so to speak. Vigorously primitive, it was In the Imposition of penalties exacted by Neptune for the privilege of enjoying safe conduct over the line that bisects the exact center of the torrid zone. It preserved all the tra ditions known to sailormen since ships' were invented. It was always entertaining, generally instructive and at times hilariously funny. Two Figures Suddenly Appear. The Florida entered the, domain of Neptune 36 hours before she reached the equator. The king of the deep made known his presence in due and ancient form while the dreadnought was plowing her way through heavy swells caused by the tides from the mighty Amazon 300 miles to the west ward. Night had come with tropic swift ness and already here began to ap pear myriads of stars seemingly only a few hundred yards away. The thin rim of the new moon was just visible on the starboard horizon, inverted. and according to the lore the sail orman, would, when it reached its full maturity, "hold water," or in other words be a "dry" moon. Translated into the vernacular of the landlubber, this meant there would be good weather. Officers and gobs, full fed and contented, were be ginning to appear on deck and the Filipino mess boys were cleaning up the remnants of supper. The forecastle deck was deserted. I Suddenly two figures seemed to come over the bow. As a jnatter of fact. I they came up through the narrow bo'sun's hatch a dozen feet from the nose of the giant warship. In the murky gloom there appeared to be nothing unusual about them, merely two sailormen engaged In the ordinary pursuits of their craft. One of them straightened up and bel lowed a mighty "Ahoy!" "Ahoy!" Commander Returns Salute. The wind carried his voice to the bridge 150 feet amidships and 50 feet above deck. Commander Dillon re turned the salute by repeating the hail, and as he did so a dazzling searchlight focused on the two fig ures standing erect at the anchor h&ist Then it was seen that the two visitors were rot ordinary sailormen. Garbed In costumes that never came from the deep, they were as weird as any humans ever seen on land or sea. One of them (a second class electrician) was Davey Jones, who acts as pilot to all good sailor men that go down to the sea in ships and never return. This particular Davey Jones was clad in a knee-length smock, colored in every tint of the rainbow. His legs were bared as were his feet On his head was a mass of bobbed tawny hair made from rope-ends combed out. Through the V-shaped opening of his cerise waist, or Whatever you want to call it, a big smudge or Ver million link, irregularly shaped like a I heart, was disclosed. Davey was bareheaded and a trifle nervous. By his side stood his clerk one of the engine room gang who wore a plug hat, a purple coat cut like a dress coat, red and white striped trousers, and carried a book in his hand. Just what use Davey Jones has for a book is known only to sail ormen. This particular clerk acted as prcmpter for Davey. As the gobs iUuiciudcd OA rasa 2 Coluam 1.A Beautiful Girls Reported Brought Into United States Illegally and Sold to Best Bidders. FRESNO, Cal., Jan. 17. Startling revelations of a veritable marriage block operated in Fresno from which beautiful Armenian girls, brought into the United States illegally, were sold to the highest bidder, were made here today by United States Immi gration Commissioner Moore. The Armenian practice of bringing girls to Fresno was brought to light this morning with the arrest of seven of the victims. Harootian Selvian, prominent and influential Armenian rancher of Lone Star, was taken into custody late today. Detailed information on the girl "bride market" was made public by Commissioner Moore. One case, in which a young Armen ian inspected girls held for sale and paid a deposit on one who pleased him, is typical of many cases in which girls were made marriage slaves, ac cording to the commissioner. The Armenian girls are charged by Commissioner Moore with entering the United States illegally through false and misleading statements made at Ellis Island, and Selvian is charged with entering the country through misleading statements and aiding in the illegal entry of the women. HOMES WASHED INTO SEA Worst Storm In History Hits Isle of Kauai in Hawaiian Group, HONOLULU. T. H.; Jan. 17. The worst storm in its history hit the is land of Kauai of the Hawaiian group, Sunday, according to advices received here tonight. Several houses in the towns of Waimea and Lihue were washed out to sea. One man was drowned. One district of Honolulu county re ported 20 inches of rain Saturday night and Sunday. Reports of dam age on the island of Oahu, on which Honolulu is situated, are growing. The Star-Bulletin estimated the dam age at $500,000. County roads and bridges were esti mated to have been damaged $100,000 and the same loss was estimated to have been suffered on the Aiea plan tation; 14 county bridges were de stroyed or badly damaged. The Oahu railroad service was disorganized by washouts. The highway systems were blocked by slides and washouts. THREE SHOT IN OUTBREAK Three Others Escape From Kansas City Municipal Farm. KANSAS CITY. Jan. 17. Three In mates of the municipal farm here sustained gunshot wounds and three others escaped early Sunday in an at tempted break by 22 inmates. The twenty-third man in the ward, who has only one leg, was unable to scale a rope made of bed sheets which the men had fixed to aid in letting themselves to the ground, 50 feet below. INDEX OF 'TODAY'S NEWS The Weather. YESTERDAY'S Maximum temperature, 41 degrees; minimum. 25 degrees. TODAY'S Rain; easterly winds. 1'oreign. Wife of Neptune husky and cusses. Page 1. Britain tightens up in Ireland to con lound rebels. Page 13. National. Harding- breaks some precedents, too. Page 1. Britain would curb American business, say packers in letter to lawmakers. Page 2. Congress votes for army limit of 17d,000 Page 4. Passage of China business bill held vital. Page 3. Oregon's extra seat in national house now believed Improbable. Page 1, Killing of American by Japanese sentry ueld unprovoked. Page It. Legislature. Modification of direct primary to protect parties proposed. Page 1. Fish and game commission approves Rogue river bill. Page 0. Proposed code is explained to house at Olympla. Page i. Fisher bill would split highway fund with counties. Page 8. Idaho legislature faces general appropria tion bill for $3.0uO.l(7. Page 7. Governor requests repeal of old road tax in special message. Page 5. Six port bills may be Introduced In senate today. Page 7. Non-partisans and Independent throw North Dakota legislature Into deadlock. Pase 13. Domestic. Armenian (Tlrls reported sold In bride market in Fresno, Cal. Page 1. Nebula going through space at rate never before noted In heavens. Page 1. Revival of Ku Klux Klan held to bode ill. Page 4. Extension of movement started by Mon tana wool growers to find market is forecast. Page 1. Pacific Northwest. Small users bear burden of increased gas rates. Pago 1. Sports. Joe Eagan wants to battle Jsck Brltton fori welterweight championship. Page It. Commercial and Marine. Demand for mlllfeed stimulated by cold weather. Page 19. Strong foreisn buying lifts wheat at Chi cago. Page 19. Industrial stocks are higher, but railway shares react. Page 19. Nile, rechartered. wltl arrive February 1 to load grain for Europe. Page IS. Tortland and Vicinity. Trial of Thomas I.otisso, slayer of Knglteh wife, begins in circuit court. Page u. Two new playgrounds to be dedicated by summer. Page 10. Oregon's aid sought In war on imported eggs. Page 11. Harness sentenced to three years for per jury in land-fraud deal. Page 20. County Commissioner Rudecn starts econ omy plan to reduce department em ployes. Page 20. Thrift commended as national asset by speakers at chamber forum meeting. Page JO. Malarkey not helping locate assets by at tack on him, says Etheridge. Page 18. Community chest directors adopi plan for awards, to charitable bodies, Paso 4, Increase to Range From 85 Cents to $6.25. HEATING SCHEDULE REVISED First 200 Cubic Feet or Less Costs 85 Cents a Month. QUALITY REMAINS SAME Company Shows Contracts in Re porting Oil Co.-t Increase; 000,000 Deficit in Old Prices. SALEM, Or., Jan. 17. (Special.) Rates for gas service supplied by the Portland Gas & Coke company were ordered increased sufficiently to take care of the advance cost of crude oil necessary in the mnnt!'.i?ture of the fuel, under a ruling of the public service commission here today. Under the commission's order, the minimum charge, which includes t!ie so-called customer cost, for t lie small user of gas. Is S3 cents, while this same charge, allowing for the same number of cubic feet, is increased in proportion to the larger customer. ui til for box type meters the maximum rate Is $6.23. Home I sern Hard lilt. The residential commercial schedule, as included in the order, follows: First 300 cubic feet or less mtni niun monthly charge of S3 cents; next 9700 cubic feet, -$1.33 per thou sand: next 40,000 cubic feet $1.20 per thousand; next 60,0(10 cubic feet, 1.03 per thousand; next 100.000 cubic feet, 90 cents per thousand; excess over 200,000 cubic feet, S3 cents per thou ean.l. The old rate for the first 23.900 cubic feet was $1; for tho second 23,000 feet. 40 cents; for the third 23,000 feet, 80 cents. The revised house heating and gas engine rate schedule is: First 200 cubic feet or less, S3 cents; next 4S00 feet, $1.03; excess over 5000 feet per month, 95 cents. Heating Quality Unchanged. In the year 1917 the Portland Gas & Coke company filed an application with the Oregon public service com- mission to reduce the heating qual ity, or B. T. U. of Its gas, but upon subsequent investigation this request was refused. Later the commission continued its investigation of the plant and plant values, but because of the war this was not completed. It was said, however, that this investigation had proceded far enough to enable the commission to matte a rate that will not cause an excessive return to the company. It was set out in the report of the commission that It h.ss no Jurisdic tion over the control, quality or prico ot crude oil. The price for crude oil is said to have advanced materially during the last few years, and it was . because of this condition that tho gas corporation was compelled to seek higher rates. Company i:hlbltn Contrart. For the consideration of the com mission the company produced a six year oil contract for oil at 74 U cents a barrel. Portland delivery. This contract ended January 1, with tlie result that quotations for oil now range from $2 to $2.70 a barrel. As a result of this advance Pacific coast companies have flatly refused to enter into future contracts, according to information eubmitted to the com mission. Although now facing hlghvr prices as a result of the commission's order, gas patrons of Portland are said to have benefited to the extent of ap proximately $2,000,000 during the last few years. Million Weftcit Shown. The advance cost of oil, according to engineers, is approximately equal to the entire previous operating cost of the plant. Records produced be fore the commission showed that the annual consumption of the company in approximately 720, OuO barrels of oil, which under the old prices of gas furnished to consumers would bring about a deficiency of more than $1, 000,000 in the receipts of the corpora tion. The new rate, although considerably higher than the previous charge, is said to be lower than that demanded by gas companies operating in other sections of the northwest. During their deliberations members ef the commission considered the ad visability of establishing a sliding scale, based on the cost of oil, but later abandoned this plan on tho grounds that it would be too much of a gamble. The commission, however, has reserved the right to modify or revise the rates upon giving ten days' notice. RISK ASKED NOT GltAXTED Public Service Commission Cuts Down Company's ScheduJc. Increase's in gas rates authorized ly the state public service commission are lower than rates recently asked in submission of a new schedule to the commission, according to state ments of officials of the Portland Gas & Coke company yesterday. Small users in particular Reetn to be favored ACouciudud on Pago 3, Column l.y