r
orao
OO.O.a 'DDD OO'D OEDO
no o ooa obo onao oc
Lowered
JL
And Witholding Tax
Sustained by Court
Constitutionality of the 1947 state legislative acts reducing in
come tax exemptions and imposing a withholding tax was upheld
Monday, by Marion County Circuit Judge George Duncan.
- Judge Duncan ruled that the two acts, which became law when
the sales tax was defeated October 7, were valid. His decision dis
missed the complaint brought by James T. Marr, Oregon State Feder
CRT
CGDOjjS
jlDGdj
52?
In the five sessions of the1 leg
islative assembly in which he has
been a member Burt K. Snyder of
Lakeview impressed fellow legis
lators and the. public as being an
intelligent, honest and construc
tive legislator. He served on im
portant standing committees and
on interim committees as well. He
was a member of the interim
groups whichJh!om 1841 to 1946
studied the problem of fees for
commercial use of the highways,
the studies resulting in the 1947
act revamping the fee-structure.
Snyder was so well thought of in
his own district of Lake and Des
chutes counties that he was con
sidered a likely successor to Mar
shall E. Cornett as state senator
from Crook,- Jefferson, Deschutes,
Klamath and Lake counties. His
name also had been mentioned
prominently for state treasurer.
Now he announces his retirement
from politics.
While Snyder's health has not
been too good in late years the
reasons he gives- for not seeking a
return to the legislature are that
he has secured adoption of the leg
islation he was particularly inter
ested in, and thinks that a legis
lature with new blood "would be
a good idea at the moment." Re
turning home at the end of a pro
longed session last spring he says
he lt Drettr much
(Continued on Editorial Page)
French Strike
Wave Spreads;
Schuman Plans
PARIS, Nov. 24 UP) The
ranks of striking French workers,
already estimated at a million
strong, swelled steadily tonight as
Premier Robert Schuman met for
the first time with his new gov
ernment to take steps for meeting
the threat to the French economy.
Government informant said
Schuman had decided on "very
energetic" measures to. prevent
more strikes, coupled with pos
sible concessions to the workers
already off their Jobs.
These sources said Schuman
, might grant the strikers' demand
for an increase in the basic mini
mum monthly wage from 7,000
franks (about $58) to 10,800
franks ($90), provided the work
ers agree to end the walkouts im
mediately. ,
The communist-led General La
bor Confederation (CGT) has
asked an immediate 25 per cent
wage increase. s
An intimate of Gen. De Gaulle
said the general had canceled a
speech scheduled for delivery in
Paris Thursday to avoid embarras
sing the new government in its
struggle with the CGT.
Postal workers, mostly postmen
and truck drivers, began to strike
In Paris and the Provinces. Tele-
hone service remained normal,
ine after line of the French rail
road system was blocked.
Dock workers in Le Harve,
Cherbourg, Brest, Nantes, La Ro
vhelle, La Palhsse and Bordeaux
voted to join their comrades who
have quit in Mediterranean ports,
including (Algiers. Merchant sail
' ors in Bordeaux, Brest and Nantes
voted to striken
Jefferson Studies
Proposal on Bank
. JEFFERSON, -Nov. 23 About
BO residents of the Jefferson area
met here Monday night to make
preliminary plans to build a bank
in this city.
After .lengthy discussion in
which keen interest in the plan
was evidenced, it was decided to
conduct a survey of the communi
ty to determine whether a suffi
- cient number of persons would
patronize the bank if It is con
structed. Animal Crackers
6y WARREN GOODRICH
"Hey! Does ny one know
whit we're going?"
rSJuj
Exemption
ation of labor representative,
against the state tax commission
Neither of the laws was depen
dent for its enactment upon any
sales tax act, s the plaintiffs had
charged, Judge Duncan ruled.
They became laws of the state on
July 5, 1947, he ruled, and enact
ed as part of a common plan.
Referendum Not Barred
Plaintiff's second contention
was that the procedure followed
by the legislature served to pre
vent a referendum by (he people
against the income and withhold
ing tax measures."However," the
judge's decision ran, "there is no
thing in the acts expressed or im
plied, preventing the same and
the referendum could have been
invoked as freely against these
chapters as against any other non
emergency act passed by the leg
islature." "Under the method used," Judge
Duncan ruled, "the legislature in
an alternative form merely an
ticipated the situation as it would
be after the vote on the sales tax
act was known, with the same re
sult as if it had waited until af
ter the vote on the referendum
was known, and then lowered the
personal exemption and provided
for a withholding tax."
Appeal Scheduled
"The rule is well settled in
Oregon, that the legislature may
enact any legislation not express
lyor impliedly prohibited by the
constitution, and when an act is
within this rule the court may not
question' the method used or man
ner or time of operation.
When the case was argued by
attorneys here recently, both sides
stated they would appeal the case,
depending on the decision. No no
tice of appeal had been filed late
Monday.
The reduced state income tax
exemptions were made effective
dn income earned after last Janu
ary 1. Exemptions of married cou
ples were reduced from $1,500 to
$1,000 and single persons from
$750 to $500. State tax commis
sioners estimated that the lower
tax exemptions would return an
additional $4,000,000 . annually
while the withholding tax would
aggregate approximately $1,000,
000. Speedy Action
Urged on Aid;
'Ration9 Feared
WASHINGTON, Nov. 2i.-(JPh
Quick emergency aid to thwart
"communist aggression" in west
ern Europe was urged by Senator
Vandenberg (R - Mich) today as
another republican senator, Brid
ges of New Hampshire, declared
that "meagre rations" at home
might result. -
Opening senate debate on the
administration proposal to send
Italy, France and Austria up to
$597,000,800 in stopgap food and
other supplies, Vandenberg said
speed; action was necessary be
cause "a new type of communism"
with terror and sabotage for
weapons - - "is on the march."
Supporters of the winter relief
measure predicted the senate
would approve the bill on Wed
nesday or Thursday. (The meas
ure contains no actual funds; an
appropriation bill will have to be
acted on later).
Bridges, chairman of the appro
priating committee, in suggesting
a "strong probability" of food
shortages at home, said the com
mittee would grant "no blank
check requests."
If the U. S. ships food to the
full extent contemplated by the
state department, and if next
year" domestic crops are poor,
Bridges said "the American people
will be subject not only to ration
ing but possibly to meager ra
tions." Printer Strike
On in Chicago
CHICAGO, Nov. 24-(-Union
printers struck tonight in Chica
go's six daily newspapers.
Members of AFL Chicago Typo
graphical union local 16 voted to
go on strike at 9 p.m. (CST) by
a ballot which officials announced
was 2,330 to 61.
The strike followed a five-month
dispute between the union and
the Chicago Newspaper Publish
ers association, representing the
six daily newspapers. The union
delivered a wage demand to the
publishers yesterday. The pub
lishers in a statement declared
wages were not the issue, and that
the only issue wss "the union's
no-contract policy."
John J. Pilch, local union presi
dent, said "token picket lines'
would be established and added
that "we'll be docile."
J. Loy Maloney, managing edi
tor of the Chicago Tribune, said
after the strike call that "we're
going to get out newspapers" and
that "we hope to give our read
ers full coverage in cooperation
with other newspapers of the
city." !
NINETY-SEVENTH TEAR
Arabian
Proposal
Rejected
LAKE SUCCESS, Nov. 24'-0P)
The United .Nations Palestine
committee tonight rejected an Ar
ab proposed sovereign single state
of Palestine and then prepared to
vote on a plan to partition the
Holy Land into separate Arab and
Jewish countries. -
The Arab single state plan, un
der which the Jews would have
lived as a minority, was defeat
ed by 29 to 12 with 14 absten
tions and two delegates absent
The U. N. assembly's 57-nation
Palestine committee then began
consideration of minor amend
ments to the U. S.-Soviet spon
sored plan for creating indepen
dent Arab and Jewish countries
by not later than next October 1.
Because of the high number of
abstentions in voting on the Arab
proposals there was still no -adequate
indication what would be
the fate of the partition plan.
The voting began after Jamal
Ef fendi Husseini of the Arab high
er committee for Palestine charg
ed that the United States and
Russia were pursuing a "destruc
tive and subversive policy under
divergent motives'' in the Middle
East and told the U. N. a Jewish
country -could be established in
Palestine only "over our dead bo
dies." .
Russia accused Britain of seek
ing to prevent a solution of the
Palestine problem, and the U. S.
was challenged by the Arab side
to explain how the U. N. could
enforce partition.
State Obtains
Silver Creek
Camping Area
PORTLAND, Nov. 24-(ff)-A
suggestion, that the state parks
program? be divorced from the
state highway commission came
today from Chairman T. H. Ban-
field. !"
The commission earlier had ap
proved acquisition of a 6,000-acre
federal recreation afcrea east of
Silver Creek Falls park but de
ferred decision on purchase of 308
acres on Tillamook head for $48,
000. -
Banfield said he believes the
Oregon highway, commission has
acquired a bout enough state park
facilities" because of the drain of
money needed fdr highway con
struction and maintenance.
The chairman said the state
should provide a parks fund from
general tax revenues. His sugges
tion came after Commissioner A.
W. Schaupp, of Klamath Falls,
had asked Attorney J. M. Devers
if the state law provided a limit
on the percentage of highway
funds to go into the park program.
The attorney .said the law leaves
the parks program to the discre
tion of the commission, but that
the commission is primarily a
road-building agency. Excessive
expenditures for parks might be
considered an abuse of discretion,
Devers said.
The Silver Creek area acquisi
tion is adjacent to the 1,800-acre
state park and represents a $L
500,000 WPA development The
area includes 75 buildings, which
go with the . property.
Snowstorm to Hit
With cold weather dominating
a large portion of the nation, fore
casters predicted a new heavy
snowstorm which will sweep across
Minnesota and the Dakotas Tues
day dropping early morning tem
peratures to below zero In many
northern sections.
New Union High School Created
At Stayton for 11 Districts
Union high school district 4, in
the Stayton school district, was
created Monday by order of the
Marion county district boundary
board, following a hearing at
which no protest was filed against
the district
Included in the new union dis
trict are approximately 200 high
school students of Stayton, Fern
Ridge, Mehama, Oak Glenn and
Howell districts in Marion county
and Kingston, Twin Cedars, Jor
dan, Mt Pleasant, Queener and a
section of Cole district all in Linn
county.
The high school will be located
on a 21 -acre tract donated by the
Stayton school-board, on Locust
street in Stayton, west of the pres
ent high school building. The new
district board of directors will
meet at Stayton High school De
cember 2, and it is expected that
construction plans for a hew build
ing will be included among other
business.
The directors j named by the
U PAGES
Resigns
I
- -
-1 ;i
J
HARRY S. SCHENK
Schenk to Quit
As Newbry Aide
Resignation of Harry Schenk
as chief assistant secretary of
state was announced Monday by
Earl T. Newbry, secretary of
state.
Newbry said he expected to ap
point Schenk's successor by next
Monday so he could work with
Schenk until the latter's resigna
tion takes effect February S.
Schenk has occupied the posi
tion since April 1, 1943, when he
was appointed by the late Secre
tary Robert S. FarrelL Jr. He was
re-appointed by Newbry when
the latter took office several
weeks ago.
No future' plans were disclosed
by Schenk, who said he had pre
viously asked to be relieved of his
duties as soon as convenient to
the secretary of state, but it was
indicated he intended to remain
in Salem.
Newbry said he would name a
successor upon his return from
a Thanksgiving trip to his home
in Ashland.
House Charge!
Contempt to
Film Writers
r
WASHINGTON, Nov. 24 -P-
In rapid-fire order, the house to
day voted contempt citations
against 10 Hollywood script writ
ers, directors and producers who
refused to say "yes" or "no" when
asked whether they were com
munists. The house overwhelmingly
backed its committee on un
American activities, which had
questioned the men in its inves
tigation of alleged communism in
Hollywood.
Maximum punishment for con
tempt of congress is a year in jail
and $1,000 fine.
The 10 contended that by in
quiring into their political beliefs,
the committee was violating the
constitution.
The only roll-call vote thump-
mgly upheld the committee, 346
to 17.
Rep. Thomas (R-N. J.), chair
man of the committee, told the
house the 10 were subpoenaed
"because our investigation had
disclosed that they were com
munists or had- long records of
communist affiliation and activi
ties." These men were cited:
Albert Maltz, Alvah Bessie,
Lester Cole, Edward Dmytryk,
Ring Lardner. jr.. John Howard
Lawson, Samuel Ornitx, Adrian
2cott, Dal ton Trumbo.
COLD 8PELL TO END
The Salem area's cold nH ram
to an abrupt end Monday night
as tne thermometer rose to 40 de
grees at midnight, and the U. S.
weather bureau predicted con
tinued warmer temperatures ac
companied by light rains for today
and Wednesday.
boundary board Monday include
Douglas Heater, Fern Ridge, and
Ward A. Inglis, Stayton, for Mar
ion county, and Arthur Sandner,
Kingston; J. Peter Meartz, Cole,
and Walter Heinrich, Queener, for
Linn county. The board will serve
until an election next June.
At the December 2 meeting the
new board will be required to elect
its own chairman. The boundary
board Monday also called atten
tion to the fact that the new dis
trict would go under the name of
Stayton union high school dis
trict, pending a vote in the various
districts.
Mrs. Agnes Booth, Marion coun
ty school superintendent, suggested
that an advisory board be selected
to consider possible names for a
place on the ballot
The new union district has an
approximate assessed valuation of
31,750,000, Mrs. Booth said. Mon
day's action by the Marion county
board was binding on the Linn
county board by previous agreement
1; '
MUNDBD 1651
Scrim. Orecjon. Tu duj.
Imprison
6 Yanks
TRIESTE. Tuesday, Nov. 25-P)
Six American soldiers were taken
prisoner Monday morning by Yu
goslav troops when they "evident
ly got out of bounds" while pa
trolling the zonal border in Vene
zia Giulia about 15 miles from
Trieste, U. S. army headquarters
announced today.
The capture of the enure bor
der patrol increased to 18 the
number of U. S. soldiers taken
into custody by the Yugoslavs in
the area since August. The other
12 have been released. During the
same period, five British soldiers
and sailors also were taken prison-.
er.
The U. S. army public relations
office here said that because of
a new policy, the names of xthe
one non-commissioned officer and
five privates would not be dis
closed until 48 hours after their
capture.
The Yugoslav authorities have
confirmed that they are holding
the soldiers, the office said, ad
ding that as far as was known,
all the men were in good condi
tion. Meyers to Face
Court Martial;
Loses Pension
WASHINGTON, Nov. 24
The army and the justice depart
ment joined forces tonight in a
crushing crackdown on Maj. Gen.
Bennett E. Meyers, retired air
forces purchasing officer whose
private wartime activities were of
ficially denounced as "one of the
most shocking scandals ever ex
posed in the history f our govern
ment" In addition, the 52-year-old of
ficer faced a probable slander law
suit brought by Mrs. Mildred La
Marre, who flatly denied Meyers'
testimony to senate war investi
gators that she was his "girl
friend."
Acting only two days after the
senate committee heard final tes
timony that Meyers made $150,
000 from a secretly-owned war
subcontracting plant while he was
active in procurement (purchas
ing) for the air forces. Air Secre
tary W. Stuart Symington an
nounced: '
1 The $461 monthly pension
which Meyers has been receiving
since he retired from the army
in 1945 on disability grounds
he said he had a nervous break
down has been stopped.
2 Steps are being taken to strip
the florid, fast-talking general of
his military decorations the dis
tinguished service medal and the
legion of merit.
3 Myers will be tried by an air
force court martial.
Immediately afterwards, the jus
tice department announced it
would go before a federal grand
jury here tomorrow and seek in
dictments against meyers.
The senate subcommittee sug
gested a study of possible war
fraud, corruption, perjury and in
come tax evasion charges.
Navy Reserve
Roster Grows
Salem's navy reserve unit reach
ed 80 per cent of its full comple
ment in a meeting at the Salem
airport Monday night as seven
new members were signed up, it
was announced by unit command
er Lt. Cmdr. Vernon Gilmore.
-Inducted. at the meeting were
apprentice seamen J. G. Taylor
and C. E. Miller, Salem, J. S.
Beebe and C M. Koenig, Dallas,
and F. J. Loftiny, Monmouth; EM
2c F. L. Ladd, Salem, and Sea
man 1e G. W. Gregory. Salem.
Gilmore announced that 21 more
men, including carpenters, motor
machinists, machinists, storekeep
ers, electronics mates and yeomen
are still needed to bring the unit
up to its full strength. Information
concerning the vacancies may be
obtained at the navy recruiting
sation at the city hall or at build
ing T-514 at the. Salem airport on
Thursday nights.
Matter-of-Fact!
Halfwarltes versus whole
hoggers that's the lineup on
Capitol Hill regarding price
controls, as pictured in today's
Matter-of-Fact column on The
Statesman's editorial page.
Matter-of-Fact is written four
times a week by the New York
Herald - Tribune's outstanding
columnists Joseph Alsop and
Stewart Alsop. The former now
is on a tour of Europe, writing
from various foreign capitals,
and the latter Is prying into
all parts of Washington, D.C.
The pair constitute a nationally-known
team whose columns
appear, exclusively In this area
in -j
s Orr&on20l&ttsm&n
Yu
Dsiavs
Morning. Nortmber 25. 1947
(SoOflDDCDfl UBflDOttS EDecftiTDc
Gb-p Framiclhip; Bosiirdl
ecirees Uivev Cleainniflp
Disposal
Ordered
In 7 Cities
PORTLAND. Nov. 24 - Uft -
The Oregon State sanitary auth
ority cracked the whip today
against stream pollution, order
ing seven cities to have sewage
disposal plans ready in 90 days
and directing a legal suit against a
canning plant
The authority also cited five
Willamette valley paper mill op
erators to appear at a January 10
hearing and show cause why their
activities should not be abated as
pollution nuisances.
. Reports on anti-stream polution
programs from Portland and 19
other cities in the state were de
manded. Secretary C. M. Everts, Jr., re
ported the attorney general was
asked to institute abatement pro
ceedings against the Hudson-Duncan
company operation in Yamhill
county near Dundee. The authority
charged that waste matter per
mitted to flow into Hess creek is
creating nauseous odors in the
community and polluting the
stream.
Albany, Monmouth Told
The seven cities were ordered to
have their construction plans for
disposal plants ready within 90
days, along with fiscal programs
or expect legal action. The auth
ority statement said the cities
had "made little or no progress"
and had "not offered much co
operation in the water pollution
abatement program". Cited were
Albany, Cottage Grove, Hunting
ton, Monmouth, North Bend,
Sheridan and Toledo.
Paper mills directed to the Janu
ary hearing are the Crown-Willamette
Paper company. West Linn
and Lebanon; Oregon Pulp and
Paper comapny, Salem; Spaulding
Pulp and Paper co., Newberg, and
the Hawley Pulp and Paper co.,
Oregon City.
Salem Fregress Tsir
The authority reported Oregon
cities had become lax during the
war years in carrying out sewage
disposal programs. Portland and
19 others in the state were de
scribed as having made "fair pro
gress" and were asked to file re
ports of existing facilities and
those planned. These included
Central point, Corvallis, Eugene,
Salem, ' Independence. Lebanon,
McMinnville. Springfield and
West Salem. Nine other cities were
listed as have made either "rea
sonable progress" or were located
on waterways where pollution
problems are not acute. They in
clude Mt Angel and Woodburn.
Wire Workers
Vote on Strike
WASHINGTON, Nov. 24-(-AFL
unions in the Western Union
Telegraph company system today
began taking a strike vote among
50,000 workers.
Union officers said it would re
quire about 10 days to complete the
poll and that no tentative strike
date would be set until the refer
endum is completed. '
AFL unions represent workers
in virtually all the company's of
fices except New York City. .
Union officials said negotiations
with Western Union for a 15 per
cent wage increase had collapsed.
Plan to 'Overcome Boom-Bust'
Trend Starts Stassen Campaign
MILWAUKEE, Nov. 24 -(1P)
Harold E. Stassen formally
launched his campaign for the re
publican presidential nomination
tonight with a plan to blend "lib
eral, forward looking proposals"
with "conservative attitudes."
The former Minnesota governor
offered an eight-point domestic
and international program to over
come "boom or bust tendencies."
He said he intended to "spell
outhe details" ef the plan in the
succeeding months with the hope
his suggestions would stimulate
others to present -"additional facts
and alternative proposals."
Stassen gave top priority to
housing and what -he termed "lack
of adequate health service" in out
lining his program.
"Everyone on social security
should be covered by an insurance
that will pay duly verified and
reasonable bills which are in
curred for medical and hospital
expenses in excess of $250 in any
one year," he said. .
Through this means the eco
nomic catastrophe that comes with
major illness or accident is re
Price
Council to Add
Light for Cop
Traffic directing at the'eon
gested 12th and State street in
tersection is working "wonder
fully." Alderman Albert H.
Gille told the city council Mon
day night "but the traffic pa
trolman there needs a flashlight
to identify himself at the eve
ning rush hour."
To remedy the darkness
there, the council voted to have
two street lights Installed at
opposite comers.
The four-way stop intersec
tion, with Southern Pacific
mainline adding complications,
is subject of frequent city coun
cil discussion. Recently the
council ordered traffic policed
there at rush hours.
Detroit, Upper
Columbia Dams
BuildingUrged
WASHINGTON, Nov. 24 - VP) -Construction
of the Foster creek
and McNary dams on the Colum
bia river; the Detroit dam on the
Santiam river and the Huifgry
Horse dam in Montana was reco
m ended today by the Federal In
teragency Basin committee. The
group also suggested that power
installations at Grand Coulee be
pushed.
The recommendations were
made by the Columbia Basin In
teragency committee and adopted
by the federal committee. They
called for construction of upper
Columbia rams ahead of dams on
the lower river.
The federal committee in an
noundng its approval said the re
port was aimed at "the greatest
overall benefit to the people of
the northwest in the conservation
and development of the region's
resources, expansion and exten
sion of electric power develop
ment and conservation of fishing.
The Columbia Basin committee
recommended against the resched
uling of dams now authorized by
congress.
(Additional details page 6)
Ceilings Back
For Canadians
OTTAWA, Nov. 24-CffVThe Ca
nadian government - -beset by
rising prices and reports of panic
buying since the imposition of its
"austerity" prog ram - - announ
ced today that price ceilings will
be reimposed on many processed
foods.
Finance Minister Douglas Abbott
said he had instructed the domin
ion's wartime prices and trade
board to take necessary action to
restore controls on the "more im
portant varieties of canned fruits
and vegetables."
The "austerity" program, an
nounced last week, is designed to
ease a shortage of United States
dollars by cutting imports on ar
ticles ranging from automobiles
and jewelry to fresh fruits. Prices
have soared. There have been
runs on fruits and vegetables in
some places.
Most of Canada's wartime price
controls on food were lifted Sep
tember 15. On October 21 the
meat ceilings came off.
moved, but the entire independ
ence of the medical profession and
the personal responsibility of the
individual citizen for his ordinary
expense is retained."
Development of huge projects
"of as many as 25.000 units" on
contract by private builders, with
furnished dwellings sold to owner
occupiers and investors would al
leviate the housing shortage, Stas
sen maintained.
Stassen listed six other policies,
including:
Reduction in taxes to specifically
give a break to small new busi
nesses. Maintenance of consumer credit
control.
Insistence that agriculture should
never be permitted to be dis
tressed. A labor policy "that is fair and
just and maintains a balance be
tween individually managed capi
tal and free organized labor."
Affirmative backing of the Un
ited Nations, making clear "we
would never follow a policy of
appeasement toward anyone."
Elimination of communist infil
tration in America.
Weather
Mai
. S3
. SJ
. II
. 33
S3
Mm.
M
M
30
30
40
1
Sal
Portland
San Francisco
Chicago
.IS
Nw York
WiHamrtt river 4
FORECAST (from US. weather Wi
reau. MrNarjr field. Salem): Cloud
with occasional llfht ratna today. )
flight and Wednesday. LitUe chaos ai
temperature. High temperature, todaf
U. low tonight 40.
5c
No. 207
October 1
Level Set
For Firm
By Robert E. Gaagwar -
Ctty Editor, The Statesman
Salem Electric received a linv
ited franchise virtually restricting
it to present operations, over th
protests of council minority ana
spokesmen for the cooperativ
which distributes Bonneville pow
er, In action Monday, night by th
Salem city council.
Other controversial bills on an
Oregon Motor Stages franchise and
city sewer service rentals were,
held over for public hearings, De
cember 8. The electric franchise
was one of 15 ordinances adopted
at the IVt hour session in city
hall (details on page 2).
The electric franchise ordinance)
which passed Over the dissent ot
Aldermen David O'Hara and Al
bert H. Gille had been presented
by City Manager J. L. Fransen. It
calls for Salem . Electric fran
chise which may be terminated on
80 dayr notice, which covers or.ly
the service extended as of Octo
ber 1 to customers within this city
plus necessary repair and main
tenance and which charges a
fee amounting to 34 per cent of
the cooperative's gross receipts. .
C-op Bill restpened '
Salem Electric, in a bill drafted
by its attorney, Allan Carson, and
introduced by Alderman Gille. had
requested a five-year franchise
for general operation in Salem,
with a fee of S per cent of gross
receipts. This bill was voted "post
poned indefinitely."
"I don't see where this bill gives
Salem Electric any privileges net
now enjoyed," declared Alderman
O'Hara In voting against it, "I
consider it an affront to the re
spected citizens of Salem who
operate this service." (The non
profit cooperative, which has a
general franchise In West Salem,
heretofore operated in Salem on,
a permit basis.)
Describing Salem Electric as an
organisation of Salem business
men backed by Salem capital, AU
dennan Gille opposed the limited
franchise bill and said. "I believe
the present low electric rates are,
due to competition and L still be
lieve in free enterprise." .
DapHcatiea Feared 1
Alderman Daniel J. Fry sup
ported the measure, however,
pointing out that one company
(Portland General Electric). noW
serves virtually alt Salem resi
dents and that duplication of ef
fort would mean two sets of
"fixed - expenses' and mitigat
against low rates in the long run.
Alderman Howard Maple said
the proposal for Bonneville power
in Salem had been twice defeat
ed by voters here, but suggested
the possibility of amending the
bill to include Salem Electric op
erations started since October 1.
Attorney Carson explained, how
ever, that expansion since Octo
ber 1 had been accomplished
largely by use of private proper
ty rather than public streets for
new lines. ,
Carson also called attention
to the 2 per cent of gross receipts
which Salem Electric pays the
state in lieu of taxes. He asserted
the extra H per cent assessed
against the cooperative as 'city
fee in the city's franchise bill '
brought the fee percentage high
er than the Portland General
Electric's and that it was not th
fault of the cooperative that its
state "tax" is not returned to thr
city directly.
Kate Said Lowest
Carson said the 90-day notice
for termination of franchise was
unfair and would make financing
difficult for- Salem Electric. He
submitted that Salem Electric's
rate of 2 cents per kilowatt hour
is lowest in the state. He said
Salem Electric has 84 users in
Salem and more than 500 In this
vicinity.
Dr. F. G. Rankin, operator of
a -veterinary hospital, said he and
about 100 other Hollywood dis
trict business men wanted Salem
Electric service. He said he want
ed electric heat which Portland
General Electric would not supply
"until late next year."
PGE Said Ready
Fred Starrett, local manager for
Portland General Electric, said
service for heat was being in
stalled wherever transformer ca
pacity permitted and was being
promised for next April 1 or be
fore in other leases. He pointed
out that heavily increased elec
tric loads of the war period and
since had abnormally increased
maintenance and expansion . re
quirements for PGE, whereas
relatively new system like Salem
Electric had as yet but little
maintenance requirement.
' (Other council news on page 2.)
Tis Meatless Tuesday