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