'Three
1
At least three comers of America are represented 1st the Willamette
University Law School this year, enrollment showed this week.
Here Dean Seward Reese welcomes the "three corners' (left to.
Harvey Firm
Given Permit
'Due to Threat'
WASHINGTON (-Government
officials revealed Tuesday that a
loan guarantee under which the
, Harvey Machine Co. is to be per
.mitted to build an aluminum
plant at The Dalles was granted
I -after the Harvey firm had threat
ened to sue the government for
70 million dollars.
' Government officials related the
story this way:
The case began in 1952 when
1 . 1
we government announces a
"third round" of aluminum expan
sion because of the Korean War.
It invited new, independent pro
ducers into the industry with the
lures of rapid tax write-offs and
guaranteed-purchase contracts.
Harvey obtained its tax certifi
cate in December. 1952, signed a
contract with the Bonneville Power
. Administration in January, 1953,
for electric power, and in May ob-
- tained GSA's letter of intent guar
anteeing that the government
would buy up to 54.000 tons of its
aluminum ninmiijr jut live jcub.
Maxwell Elliott, GSA's general
counsel, said the GSA was assured
at that time by Harvey's financial
"agent. John Clifford Folger. that
the company would waive any
claim to a government loan guar
antee.
The company bought a plant site
and in May, 1953, began prelimi-
Tiarv construction. But Con rr ess
- failed to appropriate funds for pow
er transmission faculties to the
plant
'Hem Omitted
The item was omitted from Pres
ident Eisenhower's next budget
message. In the 1954 message the
President said an item for the
transmission facilities would be
submitted later. But no request
reached Congress.
Last April, Harvey notified the
- government that it had suffered
70 million dollars in damages be
cause of the government's failure
to honor its commitments. It asked
a "constructive solution."
A month later the ODM, GSA
and Interior Department received
-letters from the firm of Dewey,
; Ballantine. Bushbr. Palmer and
Wood. The New York law firm
said it had been retained by Har
vey, and that future communica
tions; should be had with Kicker
son, i -
Nickerson conferred with law
yers for ODM and GSA and, in
June, submitted a copy of a 70
million dollar damage action to be
filed in the United States Court
of Claims.
Nickerson said Harvey would
waive its claims if the government
would provide a sure power sup
ply and would, "through loans or
repayable advance payments, as-
- Sisi in we unancing vi uic xuuvcjr
project to-the minimum extent
necessary for it to proceed."
Nickerson explained that private
financing had been available in
1953, but that the bankers had lost
confidence when the government
"repudiated" its power contract
The company, he said, apparently
would now need some assurance
of federal backing.
die with federal lawyers two weeks
later, decided that the government
had indeed made an "anticipatory
repudiation" of a firm contract,
that Harvey probably could collect
in court, and that while the firm
might not get the full 70 million
dollars, it probably could get a
' Judgment "running into many mil
lions." ,
To Accept Plai
The officials therefore, decided
to accept Nickerson's proposals in
principle, and Hemming so noti
fied Nickerson.
Questioned as to possible politi
cal implications in Harvey's use
of the Dewey law firm, GSA coun
sel Elliott said Tuesday: "It prob
ably handicapped them more than
It helDed. we tfte government)
leaned over backwards in the ne
gotiations, and so did they.
In July, Eisenhower sent a spe
cial message to the Senate asking
a supplemental appropriation of
$2,033,000 for the GSA to cover
the government's share of the cost
of a substation and power lines
to transmit Bonneville electricity
to the Harvey plant The Senate
aporoved but House conferees
killed the item because it had
never come before the House Ap
propriations Committee.
Thereupon Nickerson negotiated
with interior a reviesd power con
tract Announced by Secretary Mc
Kay last" week, it specifies that
Harvev will pay for the substa
tion and lines.
Nickerson also negotiated with
GSA a guaranteed-market contract
providing for federal aid. to the
extent that private financing could
not be obtained by Harvey with
w. w mw v iiunut mou mr
tee of the firm s borrowincs.
Federal fundi will not be avail-
Corners9 of America Welcomed at W.U.
; j V
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Men Caught
Attack on
Two men accused of the rape
this month, were taken off a bus
Tuesday afternoon.
Darnel Haller, 19, and Arthur Davis Huddleston, 24, were
arrested on a Marion County
Circuit Court warrant by the
Douglas' County sheriffs office.
The arrest was made just 10 min-,
utes after Marion County Sheriff
Denver Young phoned the South
ern Oregon city that the men
were aboard a bus headed for
California.
The young men are accused
of raping the girl near the Salem
by-pass after getting her to ac
cept a ride home, police reported.
The girl was returning , home
from a movie.
Sheriff's deputies first gained
a lead on whereabouts of the
men when they discovered a
parked car near Airport Road
early Tuesday morning. They
placed a watch on the ear and.
a short time later, spotted a man
attempting to start it
He was recognized as Fred V.
Fowler, 27, 375 E. Washington
St, who was wanted for a charge
of obtaining money by false pre
tenses on a Stayton Justice Court
warrant
The sheriffs office said Fow
ler told them he had driven
Haller and Huddleston to Albany
last night and' had returned to
pick up the car which was regis
tered to Huddleston.
Deputy Sheriff Amos Shaw and
a city police omcer, who con
ducted the original investigation,
will leave here today to return
the two men to Salem. Bail on
each has been set at $5,000.
China Students
Leave America
WASHINGTON tf State De
partment authorities said Tues
day the last of 39 Chinese students
who sought to return 'to Commu
nist China have left the country.
The final three Chinese sailed
for Hong Kong and home last Sat
urday, officials said.
They were part of a group of 129
Chinese technical students whom
immigration officials detained as
a result of Chinese Communist
participation in the Korean War.
While the detainer orders were
lifted last April the remaining 90
Chinese technicians and students
have given no indication they wish
to go back to Communist China.
TOUGH YOUNGSTER
LAS CRUCES. N. M. tff Four
teen-year-old Donny Hagerman
isn't shocked easily. Visiting re
cently at a farm near here, he
climbed a tree and brushed
against a 4,000-volt high tension
line. The charge knocked him un-
consr--us and out of the tree
but except for minor , burns he
was no worse for the experience.
able as loans, the GSA said, but
through the advance payments for
metal These must be repaid be
fore the end of the purchase con
tract at the interest rate of 5 per
cent
This, a GSA spokesman said,
should insure that a "relatively
small amount" of government
funds will be used or that the full
government investment will be re
paid promptly, because Harvey
probably would prefer to refinance
with private capital at lower in
terest charges as soon as possible.
Prevent Eye Injury l In th shop. In
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ot Semler Optical.
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Wrttrvii
MW-IN
U.MIM.IM
right) Warren Colver, University tf Alaska; Bernard Bednarx,
University of Vermont; and Koon Imm Ching, University of Hawaii,
at a faculty reception honoring the law students.
in Case of
Salem
Girl
of a 13-year-old Salem girl earlier
and arrested in Roseburg early
Rose Show at
YM Attracts
Late Blooms
The fall rose show at the
YMCA Tuesday night sponsored
by the Salem Rose ; Society,
brought out a display of late
blooms.
Top honors in the hybrid tea
class went to a red Chrysler Im
perial exhibited by A. E. Morrii
of Woodburn. Morris also won
second place in this class with a
"Show Girl"; a "Lady : Mande
ville," shown by Charles Cole,
placed third. -
In the grandiflora class, W. G.
Krueger's "Carrousel" placed
first in the class for single speci
mens while Mrs. Mike Panek
won the blue ribbon in the vase-
of-roses class with a showing of
"Carrousel.
OUie Schendel's "Glorious'
rose placed first in the flori-
bunda class, with "Red Cap,'
shown ' by Don Smith, placing
second, and Frcnsham, entered
by Dr. Earl W. Benbow of Au
rora, third.
A stem of "Otto Linne" blooms
entered by Earl Brunk placed
first in the polyantha class with
Schendel's "The Fairy" in second
place.
A vase of "Gay 90V shown
by Dr. Benbow won the blue rib
bon in the climber class and a
special award was given to a vase
of Poulsen Bedder blooms en
tered by Mrs. Chas. Cole.
"A discussion of old roses was
conducted by Mrs. A. R. Tartar,
who has more than 120 varieties
of these flowers at her home on
Garden Road, most of them gath
ered from the homes of pioneers
in the Willamette Valley.
Salem Firemen
'Rescue', Clothes
Prompt response by firemen
Tuesday saved a line full of clothes
and a garage from a possible dam
age in a grass fire in the 1500 block
of Baker Street
, Firemen said the fire broke out
about 4 p.m. in grass bordering the
Southern Pacific tracks. The
flames ate about 150 feet along the
tracks and had burned under the
clothesline and to the edge of the
garage when extinguished.
The fire may have started by
sparks from a passing locomotive,
according to firemen.
'Comedy of Errors'
To Get Insane Cases
SPOKANE W - The
new
$1,370,000 maximum security build
ing at Eastern State Hospital, re
cently criticized by a legislator as
a comedy of errors" design.
won't be made a branch of the
State Penitentiary as originally
planned, the director of state in
stitutions said Thursday.
The new three-story building will
be used for the treatment of the
criminally insane as originally in
tended, said Dr. Thomas A Harris.
OFFICES
M,. STATE I COMMERCIAL Mm, Ore
Law School
Students at
WU Honored
Three corners of the United
States and its territories were rep
resented at a recent faculty recep
tion Honoring returning law school
students at the home of Dean Se
ward Reese, dean of the College
of Law.
The three men were Warren Col
ver. third year student, from the
University of Alaska; Bernard Bed-
nan, third year student from the
University of Vermont and Koon
imm Ching, first year student from
the University of Hawaii
One-hundred-five students from
51 different pre-law schools and 13
different states and territories have
registered for the fall term.
Registration statistics reveal that
over one-half of the students are
married, 70 per cent received
bachelor of arts degrees before en
tering law school, 63 per cent are
veterans, 4C per cent are receiving
state or federal aid, and the aver
age age of the students is 25.1
years.
JUST LIKE THAT!
WICHITA, Kan.(UP)T.L.
Beham is a man to act on a de
cision. After two years' service
with the Wichita fire department
the 25-year-old fireman decided
to quit On a nrartim rfriii k..
the fire truck halted for a'traffic
light Behman
stepped off and
walked away.
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Utility Firm
Merger Probe
Set to Start
WASHINGTON tfl - Sen. O'Ma
honey - D Wyo) Tuesday an
nounced names of 17 utility and,
secunues company executives
scheduled to testify in an investi-Jpfit,
gauon oi utility company mergers ;
uu wesfc . i
The hearings, conducted by the .
Senate antitrust and monopoly :
aubcommittee, are to begin Wed-
nesday and run through Friday,
O'Mahoney. will be acting chair
man of the group for the session.
The subcommittee wjll focus at-,
tention on a dispute over a pro-'
posal ' to merge two Washington
State utilities Washington Water,
Power Co. of Spokane, and Puget
Sound Power k Light Co. of Se
attle. : " v
Subcommittee . staff members
said the management of the for-
- r
mer iavorea uie merger, wnue 01-1
ficials of the latter opposed it.
The scheduled witnesses include
Francis I. Currie, secretary to the
stockholders committee for Puget
Sound Power k Light New York;
William E. Parrott secretary of
Pacific Northwest Power Co., Spo
kane, Wash.; Kinsey M. Robinson,
president of Washington Water
Power Co., Spokane; and Frank
McLaughlin, president of Puget
Sound Power k Light Co., Seattle.
Rowan Leads
County GOP
Leonard Rowan, Salem, who has
been serving as first vice-president
of the Marion County chapter
of Oregon Republican clubs, was
elected president Tuesday night at
a special meeting. .
Rowan will serve out the unex
pired term of Clarke Brown who
resigned. All officers of the chapter
will be elected in January at the
annual meeting.
The club will meet the second
Tuesday of each month with the
first fall program due in October.
Norblad Dates Talks
PORTLAND UH A schedule of
appearances for Rep. Norblad (R
Ore) in Northwestern Oregon was
announced Tuesday by Republican
headquarters.
He was at St. Helens and Clat
skanie Tuesday. He is to be at
the state library at Salem, Sept
:
North Marion county . fair.
Sept. 23; Corvallis at noon, Sept
26 or 28; Molalla Sept. 27.
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DOUGLAS
Salem Robbery
Suspect to Be
Returned Here
A man charged with the 1933
robbery of the Salem , Western
Union office will 1e returned here
this week to face the charge by
a - Marion Cbunty deputy sheriff.
Dep. Sheriff John Zabinski leaves
today for Soledad Prison, Calif or-
D -v w 11 am Dona d
wheB ne is released from
prison there.
Toung said f ritz is wanted for
the May 31. 1953 robbery here
which netted about 1310 in. cash
-nd Mm. moncv orders. He has
bee in the California prison since
his apprehension in Sumner, wasn.,
in June this year. Young said.
Protestant
Churches Hit
By Council
: Protestant churches in Oregon
were criticized tor their poor
record in the refugee resettle
ment program at the monthly
meeting "of the Salem Council of
Churches. .
i Criticism came from Dr. Mark
A. Tafney, executive secretary of
the Oregon Council of Churches,
who spoke Monday night Talney
said only one family has been
sponsored in Oregon during the
past year. .
'He urged Salem churches to
get behind the refugee program
which, he said, is now able to
bring a family to the community
within a few months after appli
cation for sponsorship.
j Talney . outlined . a six-point
program for 1955-56 which in
cluded stepped-up evangelism,
counselling workshops for min
isters, Christian education pro
grams and the world relief and
refugee program.
! The Council also heard a final
report on the migrant ministry
program this year from the Rev.
Ernest Goulder. The cost of the
program totalled $1,216 of which
$174 is yet to be raised.
During the business session,
the Council discussed the possi
bility of adding churches in the
outlying area to it Other busi
ness action included a vote to
recommend a monthly newsletter
as a joint publication of the
Council and the United Church
Womeii. Mrs. E. P.t Goulder will
edit the publication.
K-X-V a . ?-;-: .&,
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a Sunday punch for safer passing that no
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The proof was burned into the sands of
Daytona Beach at the NASCAR, trials
earlier this year. In acceleration tests,
Chevrolet ' simply walked away from
everything else in its field. Fuj-and get
this all the high-priced cars except one!
Surprising? Not when you consider that
this beauty's been cleaning up on all
comers in short track stock car events
this season. That's where acceleration
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Grass Seed
: I ; . '
Men Ready
Disease Fight
By LILLTE L. MADSEN
Farm! Editor, The Statesman
Oregon grass seed growers,
along with Oregon State College
research and extension workers,
are preparing defenses against
Silvertop disease, which destroy
ed some 2,000 acres of Chewings
r,X 7", ESTSE
tr . i ill . -- i i
Marion Counts r nVM.Earl Ccok, Wayne Green, Harold
?EJ L-2ZtJ!fUt .: Roberts ; dMl
. ! " . ' ' i .- !Sort:. Election of officers will be
It could well, ssys F. E. Price, held Oct 13.
director! of the state college ex-j Main speaker at the meeting was
periment station, become a state- Albert Wiesendanger. secretary of
wide problem with other grass the Keep Oregon Green Associa
ted crops, too. i . . ' !tion He praised the public and
During the past month bun- particularly loggers for cooperaU
dreds of acres of harvested fields
have been burned. Acres which
were not harvested because of
the disease were also burned.,
Burning of infested or suspected
infested fields, after harvest is
one of th erecommendations from
the experiment station. A spring
DDT spraying or dusting pro
gram aimed at checking probable
insect carriers of the fungus dis
ease, is another recommendation
which the college terms a "stop
gap measure." This is the first
season the disease has been a
serious problem in Oregon.
New to Valley
Silvertop, while new to the
Willamette Valley, is not strict
ly speaking, a newly discovered
disease.! Research workers at the
experiment station are, however,
focusing attention on the., prob
lem as j it has developed under
local conditions. In the mean
time, efforts are being made to
find out every control method
that has shown most promise in
other parts of the country
and
these will be applied here.
"The j collection of information
made in advance of the outbreak
in Oregon, has made it possible
for thej Oregon, growers to move
immediately with the most satis
factory! control methods from
areas where ; Silvertop : struck
earlier.? Price reported Monday.
Pricei hoped that most of the
grass growers had their fields
burned j before the heavy rains
of last week. - Thorough burning
is desirable, he said, adding that
burning also helps control grass
seed nematode; and reduces some
of the leaf and stem diseases that
attrck chewings fescue.
Not Yet Tested -
i. In reference to the DDT dust-
CAN TmTCM -
ACCELERATION!
IUTI LOW PRICES-BIG DEALS!
t ' 9. -
Stpt. 51, 1955-fStc 2V-7
Kiwanis Club
Nominates for
Coming Year
The Salem Kiwanis Club Tuesday
nominated officers for the coming
year, with Kenneth Perry, current
first vice president being an un
opposed nominee for president
All Gragg, now second vice presi
dent was nominated unopposed for
office of first vice president Nomi
nees for second vice president were
George Alexander and Art Ather
iton and nominations for four dU
1 rectorships included Phil Brownelt
.ing in the fight against forest fires.
Wiesendanger observed that only a
few fires in the state this year
were man-caused. ,
TIME STOPS
NEWPORT, R. L (UP) The
Newport Court House clock
stopped June 14 and time stood
still until July 1. No funds were
available to fix the clock until
the beginning of the new fiscal
year: .......
ing or spraying, recommendation
is for three-fourths pound of '
actual DDT per acre in spring
when plants are four to six inches
high and before the first heads
appear. This suggestion. Price
said, is based on work done in
other states and has not been
tested in Oregon.
In addition to destroying about
half of Clackamas County's Chew
ings fescue crop this year. Silver.
tof has damaged seriously much
of the rem-inins ecrca?e of the
f crop in that county and consid
erable in Marion. It has . also
been Identified in other grass
seed crops at spotted locations
in Oregon. Although it is known
to affect numerous grasses, the
disease is most likely to cause
serious damage to Merlon, Chew
ings, Red Creeping, and possibly
bent-grasses.
The disease 'rots off the seed
stem just above the uppermost
joint Since the fungus does not
attack the seed and is not car
ried by seed itself, it is not a
problem in lawns or turf. Re
searchers sry tie fungus is prob
rbly carried by mites or inserts
to the point of inf-ction Hne'th
the leaf sheeth. Seeds do not
ffym in affected heads.
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