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About Morning Oregonian. (Portland, Or.) 1861-1937 | View Entire Issue (Oct. 26, 1921)
4 Proved! Yesterday! To Portland! False Impression of Measure Appears Prevalent. READJUSTMENT SOLE AIM Statute Enacted to Get Roads Over Difficult Period Following War Explained In Detail. THE MORNING OKEGONIAN, WEDNESDAY, OCTOBER 26, 1921 ES PROFIT GUARANTY THE OREGONIAN NEWS BUREAU, Washington, D. C, Oct. 25. Every now and then a political speaker arises somewhere to tell the country about the iniquitous government t guarantee of a fixed Income to the railroads, carrieo in me iriopn tion act, better known as the Esch Cummlns law. In most oases there i no Intention to misstate the facts, but, according; to some of the mail reoeived by member of congress from their constituents back home, this false impression has taken a firm hold In the public mind. Careful analysis of the Esch Cummins law made by a close student of federal legislation of recent years shows that any actual guarantee made to the railroads was of short duration, detailed explanation of the act being as follows: The Esch-Cummlns law was the act which terminated federal oontrol of the railroads March 1. 1920. The period of federal control left the rail roads with many Intricate problems to solve. Involving finance and opera tion, which necessarily Include rates and wages. Guaranty Limited One. Undr federal control the Wilson administration had guaranteed the railroads certain Incomes and entered into contracts fixing the compensa tion which the railroads should re ceive. To carry the railroads over the readjustment period, the Csch Cummlns law guaranteed the rail roads, for six months ending Septem ber 1, 1920, an Income of not less than half the amount which had been guaranteed them under federal con trol. Since September 1, 1920, not one cent of Income has either been paid or guaranteed to the railroads by the government. It should be explained, however, that not all of the income guaranteed the railroads during the six months from March 1, 1920, to September 1, 1920, has yet been paid. This is due to the faet that the amount of this guarantee depended, upon the amount of income the rail roads obtained from the government during the period of federal control. In a very great number of cases this has not yet been settled. To enable the raflroade, which had been under federal control, to serve the public properly through the period of readjustment, the transpor tation act permitted any railroad within a period of two years follow ing the termination of federal con trol, or until March 1. 1921. to borrow money from the federal government under certain conditions. Full Security Required. The railroads were required to put up security for ujh loans which would meet the approval of the Inter state, commerce commission. ...The loans were to hear 6 per cent Interest per annum and be repaid within 15 years from date. To supply funds for these loans the transportation act appropriate! $300,000,000 to create a revolving lan fund. To date approx imately $251,000,000 has been lent the railroads from this fund and about 120.000,000 has been repaid. The act authorized the Interstate commerce commission to divide the railroads of the country into groups to facilitate the making of rates on an equitable basis. The act prescribed that the interstate commerce commis sion should estimate the aggregate value of railroad property in each group, and ascertain the aggregate amount of traffic carried by the railroads of each group. It should then fix a freight rate for each group sufficient to earn a fair return upon the aggregate value of the property "under honest, economical and effi cient management." However, the act provided that during the two years. March 1, 1920. to March 1, 1922, a fair return should be 5 4 per cent on the aggregate value of the rail roads in each group. Some have asserted that this constitutes a guarantee of a Si per cent net Income to the railroads. This Is not true. The rates fixed are on group aggregate traffic handled. Each group contains strong roads and weak ones. Neither the com mission nor the government take cognisance of these differences with in a group. After the rate was fixed on the basis of group traffic to earn 5H per cent on group property, each railroad had to hustle. If Its earnings are not BH per cent that is entirely Its own misfortune. There Is no guarantee by the government that any railroad shall earn 5H per cent or any other per cent. LINDBERG TRIAL DATE SET Director of Scandinavian-American Bonk to Face Jury. TACOMA, Wash.. Oct. 25. (Spe cial.) All motions presented by counsel for Gust&f Lindberg, one time member of the board of direc tors of the defunct Scandinavian American bank of Tacoma and presi dent of the Llndberg Grocery com pany, charged with having criminally borrowed 913,500 from the bank, were denied by Judge Chapman of the superior court and the date for Uindherg's trial was set for Novem ber 10. The charge on which Llndberg will gn nn trial was filed against him in informiitlon rtlrept hy action of Mi 1 SPECIAL THURSDAY 4:30 to 8:30 P. M. Virginia Baked Ham Southern Style, Brown Sweet Fotatoes Baked in the Juice of the Ham. Red Mill Cafeteria Fifth, Bet. Stark and Oak Breakfast Served Copyright 1921 Hut Schaffner & Mars Looking for real value? THAT'S what everybody wants; that's what .we are giving you; fine clothes for less money; in Hart Schaffner & Marx suits and overcoats Prices are now at least one -third less than one year ago you see the saving in the clothes. Sam'l Rosenblatt ' & Co. Fifth at Alder Gasco Building Prosecuting Attorney Selden. Mr. Selden said that he is not willing to let Lindberg go free without sub mitting at least one case to a jury. Ole S. Larson, president of the de funct bank, is scheduled to go on trial November 7 before Judge Chap man on a charge of larceny of J17.000. BROTHER CAUSE OF ROW F. L. Baker Seeks Divorce Charg ing Infidelity of Ray Baker. PENDLETON. Or., Oct. 25. (Spe cial.) A story of one brother's In fidelity to another was told yester day when F. L. Baker filed a com plaint for. divorce from Mary Ellen Baker. Air. Baker says his wife ran away last month with his brother, Ray, and that the two are now living in La Grande. The Bakers have two children. They were married here In 1913. The hus band says that the brother, Ray, a soldier in France, came to live with hinx after being discharged from the army in 1919. His wife and the brother went motoring, visited shows together, and were friendly, accord ing to Baker. A month ago. the com plaint states, becoming suspicious, he confronted the wife. She confessed her love for the brother. The hus band then called the brother in and he in turn told of his love for the wife. Mr. Baker kicked his brother out of the home. When Ray Baker left the home, the wife followed him to La Grande, the husband charges. Oregon Postmasters Appointed. THE OREGONIAN NEWS BUREAU. Washington, D. C Oct. 25. Fourth class postmasters were appointed in Oregon today as follows: William J. Eccles, Bate; John P. O'Brien, Jen nings Lodge: Augusta A. Behme, Rit-ter. ' if m fSr m A Message to the People of Oregon By Governor Olcott XT IS with pleasure I take the opportunity thus afforded me to urge upon the people of the state the importance of rallying around Oregon industries by the purchase of Oregon products. The prosperity of all of us is very closely linked with the prosperity of such industries. When Oregon people invest in Oregon industries by the simple method of buying their products, they are making an investment which cannot help but bring large returns to themselves. I sincerely trust that this campaign to educate the people of the state into the knowledge that the purchase of Oregon products means a greater and better Oregon for each and every one of us will meet with success from the start. ASSOCIATED INDUSTRIES OF OREGON i Baildtsa. Partisan llMMMMliMiii! m Infill yt i'm CsSpt Big Audience at White Temple Hears Helen Clark and Joseph Phillips in Edison Tone-Test In a test of direct comparison, made yesterday at White Temple before a large audience, the New Edison scored a complete and convincing triumph. Helen Clark, the famous contralto, sang in direct comparison with the RE-CREATION of her voice by the New Edison. To every ear there was no difference between her living voice and her RE-CREATED voice. This is the most drastic phonograph test known. No other phonograph has ever sus tained it. No other phonograph has even at tempted it. The New Edison's marvelous performance of yesterday vindicates everything that has been said or claimed for its perfect realism. Helen Clark stood on the stage next to a shapely Chippendale cabinet. She began to sing. Her golden notes soared over the audi torium, bringing all under its magic spell. Half way through her song , she suddenly stopped singing. The New Edison, at her side, took up her song and continued it alone. t Singer and phonograph thus alternated throughout the song. The only . way the audience could be sure which was singing was by watching Miss Clark's lips so exactly like the living voice was the RE-CREATED voice. Joseph Phillips made the same test of com parison with the RE-CREATIONS of his bari tone selections. Again the same result there was no difference between the RE-CREATED voice and the living voice. Proof was piled upon proof! Evidence was massed on evidence! The end of the concert found the audience absolutely and completely . convinced, through its own personal experience, that there is no difference between an artist's living performance and its RE-CREATION by the New Edison that listening to the New Edison is, in literal truth, the same as listen ing to the living artists. ihe NEW EDISON 'The Phonograph With a Soul" Only one question can still bother your mind. This question we now answer. The instrument; used in yesterday's tests was not a special model. It was an Official Laboratory Model, taken from regular stock. Every Official Laboratory Model in our stock is guaranteed1 to sustain the same test of direct comparison with living artists. You can have an Official Laboratory Model in your home. You can own an instrument which will do every thing done yesterday in the test. Come in. Hear the wonderful Official Laboratory Model for yourself. Learn about our Budget Plan, which puts our Official Labora tory Model into your home for no more than you would "pay down" for a talking machine. eed French Piano Co. Local EDISON Dealers Twelfth and Washington Sts. Twelfth and Washington Sts. R Toast and Coffee Electrically Hot! After all, there's only one way of preparing toast and coffee, and that's the electric way. Piping hot coffee and crisp warm toast as you want them and when you want them right on the table within reach. The cost of an electric percolator and electric toaster is but a trifle when considering their preat convenience. And the cost of electricity for hea.t lng them is very low indeed. All first-class dealers sell these and other elec trical appliances. We, too, have them. Ask About Oar SPECIAL ELECTRIC RANGE PRICES and TERMS and LOW COOKING RATES RAIEWAY; LIGHT IWERCO. Electric Bldg., Between Sixth and Broadway ELKCTHIC STORES ALSO AT SALEM, VACOt'VKR, OKJSOOSf CITY, ST. JOHNS V The Gasco Furnace perfected after years of effort, now is unique in its scien tific perfection. The result: Hundreds of enthusiastic users, satis fied 100 per cent. (, That's what we aimed at in building the Gasco. Those satisfied customers are our best asset. Floor Furnace, $37.50 The Bungalow, $125 Gasco Pi pel ess, $150 up Gasco Furnaces, $200 up See them at the Gas Office. ii