Page 5 A
Railway Unions Assail Plan
EUGENE REGISTER-GUARD, Sat., Jan. 13, 1962
Until Sunday Morning
igur Shew Uw Tomperoture
Snow,
Rain
Emerald
EUGENE-SPRINGFIELD
Forecast: Partly cloudy to
night, with a few scattered
showers or snow flurries to
day and tonight. Increasing
cloudiness and a little warmer
Sunday, with rain likely in
the afternoon or evening.
Western Oregon. Same fore
cast. Statistics (readings at the
U.S. Weather Bureau, Mahlon
Sweet Airport, Eugene): High
est temperature Friday, 44:
lowest Saturday morning, 29;
rain in 24 hours ending 10
a.m. Saturday, .06 of an inch;
total for January, .83 of an
inch; average for January, 5.41
inches; readings at 10 a.m.
$3 Million
To Boeing
WASHINGTON lav-The U. S.
Tax Court has added $3 million
to the government's claim that
Boeing Airplane Co. made ex
cess profits on government con
tracts in 1952.
Records of the court revealed
that Judge Graydon G. Withey
had ruled Boeing made excess
profits totaling $13 million. He
called it "unconscionable ex
ploitation of the United States
in its procurement of military
necessities."
The plane company had ap
pealed to the Tax Court after
the U.S. Re-negotiation Board
held that Boeing made S10 mil
lion in excess profits in 1952.
Instead of upholding the appeal,
Withey tacked another $3 mil
lion to the bill.
In Seattle, Harold W. Hayncs,
Army Grants
Discharge
WASHINGTON lift The Army
said Friday it has granted a
hardship discharge to an Ore
gon man, Spec. 4 Douglas A.
Slone, Corvallis.
The soldier's request first was
turned down, but the matter
was reviewed at the request of
Sen. Wayne Morse, D-Ore., last
November and the discharge
came through this week, the
Army said.
Morse indicated Friday there
had been difficulties with the
Army.
Stone's commanding officer
said Dec. 5 that the request for
the discharge could not be con
sidered favorably because it
failed to fulfill regulations,
Morse reported.
"I was advised by Stone that
his superior officers had in
formed him that if he had not
asked for my intervention in the
case, he would probably have
received a hardship discharge,"
Morse said.
Missing Duck-and Case -Tabled
Eugene police solved the
rase of the missing duck
Thursday. But even though
the duck was found, it will
never be returned.
Officer Jack Cater gave this
account of what happened:
He was called to a Eugene
home by a woman let's call
her Neighbor A who re
ported that her children's pet
duck was missing. However,
she had heard Neighbor B's
children talking about having
roast duck for dinner.
With these clues, Cater
went next door and talked to
Neighbor B. When he asked
her if she'd seen a stray duck,
she said yes, it was in her
kitchen at that minute ready
for stuffing.
Neighbor B told Cater that
the duck had been on her
front porch for five hours the
day before. When Neichbor
A finally came to get it.
Neighbor A said that the next
time the duck came over,
Neighbor B should cut its
head off according to Neigh
bor B-
Neighbor B said she went
Expected
Either showers or snow flurries is the forecast tonight for western
&on' S,",?w. w.lU fal1 toniSht in the northern and central Plains,
northern Mississippi valley, parts of the Lakes and parts of the
northern and central Plateau, with snow flurries in parts of northern
New England. It should be warmer east of the Mississippi, in the
Gulf and the southern Plains states, and colder in the northern and
iciiucu vicuna aim pans
Empire
Saturday: humidity, 95 per
cent; wind, SW4. Prevailing
wind Friday, SW6.1.
Stage of rivers at 7 a.m. Sat
urday, Willamette at EWEB
Steam Plant, 11.7 feet; Mc
Kenzie at Armitage Bridge,
3.4 feet.
Sunrise and sunset: Sunday
7:45 a.m. and 4:50 p.m.; Mon
day, 7:45 a.m. and 5 p.m.
TEMPERATURES
(24 houri ending 10 a.m. Saturday)
2 p.m. " 42 Midnight Sat. 31
Noon Friday 42 2 a.m. " 33
4 p.m. " 40 4 a.m. " 31
6 p.m. " 38 6 a.m. " 30
8 p.m. " 35 8 a.m. " 31
10 p.m. " 34 10 a.m. " 34
Readings at U. S. Weather Bu-
reau,
Mahlon Sweet Airport, Eu-
gene.
Added
Claim
Boeing vice president for fi
nance, said the new ruling will
cost the company about $900,
000, because it has already paid
$2.1 million in taxes on the $3
million. He said Boeing also
had refunded $3 million in tax
es after paying $7 million in
taxes on the $10 million profit.
No other company officials
would comment.
Withey's ruling was the first
in a series of 22 cases in which
$125 million is in dispute be
tween the government and
plane manufacturers.
At issue in the Boeing ruling
was the incentive contract.
Government attorneys ex
plained that under this con
tract, the Air Force and Boe
ing would make a preliminary
estimate on the costs. If ac
tual costs are less than the es
timate, the manufacturer gets a
percentage of the difference as
an incentive.
The re-ncgotiation board felt
the original preliminary esti
mates were unreasonably high
"permitting an unreasonably
high difference and struck the
$10 million which Boeing
claimed in profits.
Judge Withey declared, "Ac
tual cost being determinable
when final profits were com
puted, we see no justification
for the payment to petitioner
of more profit than that which
would accrue to it by applica
tion of a reasonable percent
age profit rate to actual, as dis
tinguished from estimated,
costs."
"Otherwise, with that rea
sonable rate applied to esti
mated firm target costs, the
very purpose of this type of
contract is vitiated.
"With the rate factor so ap
plied, it is obvious it will pro
duce profits in direct ratio to
the estimated cost, thereby cre
ating a high estimated cost in
centive rather than the con
trary." to the Courthouse and talked
to a deputy district attorney
who told her, she said, that
if Neighbor A had told her to
cut the duck's head off, there
shouldn't be any repercussion
from Neighbor A.
On Thursday morning,
Neighbor B told Cater, the
duck came over for a visit
again and began to chase her
children. So she captured it
in a box and performed the
coup de grace then began
preparing a roast duck dinner.
THERMO-SNUG
Aluminum Storm Windows
Reduce fuel costs
Stops drafts, dirt Infiltration
Controls inside condensation
Free Estimates and Planning Aids
Manufartured FIfTl PIT PlP Woo'dWIndow.
4th and High MILLWORK AND GLASS 1)1 Mill
.1
1
01 me riateau.
Weather
OREGON
(24 hours to 4:30 a.m.
Max.
Astoria . 40
Baker M
Bend . 37
Brookings 67
Burns 34
Klamath Falls 32
Lakevlew 39
Medford 43
Newport 40
North Bend 47
Pendleton 31
Portland 36
Redmond 35
Roseburg 44
Salem 39
The Dalles 29
NATIONAL
Max.
Atlanta 32
Bismarck 33
Boise -- 26
Boston 31
Buffalo 21
Chicago 22
Cleveland 22
Denver 42
Detroit 21
Falrbanka 10
Forth Worth, 42
Helena 21
Honolulu 79
Juneau . 33
Kansas City, 36
Los Angeles 57
Louisville . 26
Memphis 25
Miami 60
Mlnneapolla 27
New Orleans 34
New York 30
Oklahoma City 42
Omaha 38
Phoenix 55
Rapid City 32
Salt Lake City 29
San Diego 61
San Francisco 54
Seattle 34
Spokane 22
M-Mlssing; T-Trace
Saturday)
Mln. Prep.
29 .19
14 M
22
35
10
6
Mln. Prep.
13
18
15
17
17
20
16
5 .
20
-18
24
10
70
17
27
49
17
14
43
23
IS
19
24
26
M
M
23
52
46
32
12
.07
.18
Youth Injured
In Auto Mishap
Gregory Stanley Beck, 17, of
Rt. 1, Box 1168, Eugene, suf
fered a head injury in a two-car
collision west of Eugene Friday
evening. He was listed in "good"
condition at Eugene Hospital
and Clinic Saturday.
State police said Beck's car
was moving east on Royal Ave
nue when it was involved in
collision with an auto driven by
Sidney Dillon Woodhouse, 19, of
2559 Roosevelt Blvd., Eugene.
The Woodhouse auto was mov
ing west on Royal and was turn
ing left onto Archie Road.
The accident happened about
8 p.m. Both cars were badly
damaged, state police said.
Students Invited
To 'Dimes' Dance
Springfield area junior high
school students are invited to
attend a March of Dimej bene
fit dance tonight from 7:30 to
10:30 at the Springfield Me
morial Bldg.
Admission to the dance will be
25 cents per student. Jim
O'Neil, Springfield radio an
nouncer and Springfield spec
ial events chairman for the
March of Dimes, will be disc
jockey for the dance.
Cultural Pact
BAGHDAD, Iraq W Iraq has
signed a two-year plan for cul
tural cooperation with Red
ruled Czechoslovakia. It pro
vides for exchange scholarships,
educational visits and ex
changes of art exhibitions.
.- ! -mit t WtXfFX. .(:"
Cater returned to Neigh
bor A's house and told her that
the nolongermissing duck
was destined for Neighbor
B's oven.
Neighbor A said she had
only been joking.
Cater told her that if she
wished to take any action,
she'd have to consult an at
torney for further advice.
He closed the case, as far
as police are concerned, with
a report titled "Missing Live
stock (Deceased)."
Pennsy, NY
By SOGER LANE
Of the Associated Press
NEW YORK Wl The high
ball sign went up Saturday for
merging the giant Pennsylvania
and New York Central Railroads
into a 20.300-mile, $3.4-billion
assets Goliath.
Carrying an "economic neces
sity" label, the plan dramatized
creeping financial ills that
threaten major rail, air high
way and water segments of the
country's transportation system,
a $100-billion yearly industry.
It promised to stir sharp de
bate in Congress, local govern
ments, federal regulatory agen
cies, and among shippers, as
well as within the industry it
self. Within hours of the plan's ap
proval Friday at separate meet
ings of the Pennsy and Central
boards, it was assailed by 20
railway labor unions as "catas
trophic ... in its potential ef
fects." Fear for Jobs
The railway brotherhoods
fear especially elimination of
jobs, one of the means by which
the merging companies would
hope to pare expenses and shore
up faltering earnings.
Between them, the Pennsy and
Central have about 120,000 em
ployes.
Latest published figures, cov
ering the first 11 months of
1961, showed the Central nearly
$16 million and the Pennsy $2.7
million in the red, although the
Pennsy may have finished the
year in the black.
Aside from the brotherhoods,
opposition to the proposed union
was possible from the Justice
Department, concerned with
monopoly questions; from ship
pers; and perhaps from compet
ing railroads.
John E. Kusik, Chesapeake &
Ohio senior vice president,
speaking in the absence of Presi
p- imt'. Cleat Lake Ctltoff 'm-mmmtmmq
I Condition of Road
Angers Residents
By DAN SELLARD
Of the Register-Guard
When 60 residents of the Blue River-McKenzie Bridge area
signed a petition about the bad condition of the Clear Lake
Cutoff highway this week, they didn't know where to send it
And they're not to be blamed the highway is snarled up in
an administrative mess that makes its chuckholes and mire
seem small in comparison.
But the condition of the road over the past few winter
months has been bad ... so bad, in fact, that it's been blamed
for a total damage wreck to a truck and a collapsed wheel on
another car.
Leader of the petition move is John Watson of Leaburg, who
used strong words when he called the Register-Guard this week
to complain about the road.
The petition, which finally was sent to Gov. Mark Hatfield,
said "We, the undersigned, believe it is possible for the respon
sible ones to fix the highway from McKenzie Bridge to the dam
site at Carmen-Smith. It is dangerous, unsafe and downright
unnecessary, hard on our cars, ruinous to our tires and is liable
to cause u serious accident. We, the undersigned, agree that it
is past time that this should be remedied now."
Actually, the cutoff road, which will make an all-weather
route from the McKenzie Bridge area to the Santiam Highway,
is being improved. Some work was done Tuesday, more Wednes
day and participants believe that the road will be in fairly
good shape soon.
But, the action came after a series of letters, consultations,
meetings and other moves.
This is the situation in a nutshell:
The U. S. Bureau of Public Roads has jurisdiction over the
road since it is on federal lands.
The State Highway Department will maintain the section
once it is finished and "accepted," but not until then.
Vernie Jarl of Gresham has the contract to pave the en
tire 20-mile route and as a condition to the contract has main
tenance responsibility from the time of the contract-signing
until completion.
The Eugene Water & Electric Board, plus its prime con
tractor, Peter Kiewit Sons Co. are the prime users of the high
way. It is the main access to the big dam project being built on
the" Upper McKenzie by EWEB.
Off the record, all these parties have plenty to say about the
others. On the record, hardly anyone wants to talk about it at
all.
To the Bureau of Public Roads, it's simple: The road would
not be used at all if it were not that the Eugene utility has to
have it opened for building the dam. And besides, the BPR
points out, "it's the contractor's responsibility."
To Jarl, the problem gets ncttlesome. He told the Register
Guard that he doesn't mind a little work on the road but that
"It's the EWEB people that are using it most . . . This is an
abnormal condition ... If I fix the road up, it'll be out of my
pocket and I won't be reimbursed ... I figured that bid pretty
close anyhow."
The highway department has the easiest out the road Isn't
theirs and they have nothing to do with it until its a part of
the state system. But no one has answered a question put by
Watson and others: If the state collects fees from truckers and
other users, why can't the state do something about the situ
ation? Byron Price, superintendent of EWEB, reported Friday that
something was being done. EWEB is now supplying Jarl with
"hot mix" and a truck to haul it from Eugene to the road site.
Price does not accept responsibility but is giving Jarl the help
to "get something done."
So, something is to be done. But It took a lot of doing to get
it started.
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11th & Oak Eugcm
dent Walter J. Tuohy, said the
merger announcement was an
"interesting development" and
one that "could mean that our
own application for control of
the Baltimore Si Ohio Railroad
will be expedited."
Milton G. Mclnnes, president
of the Erie-Lackawanna Rail
road, commented: "Wo have re
peatedly said we were for merg
ers in the industry to reduce its
losses. It strikes us that the
Central-Pennsylvania merger
plan places all the railroads in
the Northeast finally as saying
where they want to be."
Felix S. Hales, Nickel Plate
'Polly ana Attitude'
Blamed on Demos
OKLAHOMA CITY, Okla. Wl
The Republican National
Committee, laying the ground
work for the 1962 election cam
paigns, was told by two speak
ers Friday that the Kennedy ad
ministration is too soft on com
munism abroad and drifting to
ward socialism at home.
The committee was to hear
Saturday from the acknow
ledged leader of the GOP's con
servative wing, Sen. Barry Gold
water of Arizona.
Rep. William E. Miller of
New York, committee chairman,
said in a speech Friday night
that the President did not stick
with the facts in reporting on
world crises in the State of the
Union address.
Miller said the situation in
Laos and South Viet Nam has
deteriorated instead of im
proved, and the North Atlantic
Treaty Organization has not
been strengthened.
5 Times Safer
T-u--1 , , i: -i
MARCH I, IM2 TPj
L'REIIIT CARDS!
Dl 4-1151
AAAAAAAA&y
Central OK Merger
road president, said the merger
plan was "probably a good
idea," adding that it indicates
that "there will be three major
systems in the cast based on
Norfolk & Western and Nickel
Plate, CiO and B&O, and the
Central and Pennsylvania."
'Construction Move"
Stuart T. Saunders, president
of Norfolk & Western, called
the merger a "highly construc
tive development" and said it
would "contribute greatly to the
solution of many problems con
fronting Eastern railroads."
He expressed the hope Fri
Miller added that the dispute
with Russia in Berlin remained
a major problem, and American
policy in the Congo was op
posed by other NATO coun
tries. The Pollyanna attitude and
the strategy' of the ostrich may
serve the purpose of the admin
istration in domestic policies,
but abroad they can only serve
to increase the recklessness of
our enemies and the confusion
and despair of our friends,"
Miller said.
President Kennedy is promis
ing the American peoplo a va
riety of welfare packages," Mil
ler said, "but the people will
give more than they get."
The federal government
never spends a single dollar
that doesn't carry with it a
measure of control, Miller said.
We believe in the fact that
when a government gets so big
it can give you anything you
want it's also so big it can take
away everything youve got."
Rep. Bob Wilson of Cali
fornia, chairman of the Repub
lican Congressional Committee,
told the group earlier that Ken
nedy made a "left turn" after
listening to Americans for
Democratic Action. This group
has a program to socialize the
nation, he said.
The National Committee
heard a report from its "big
city politics" committee in
which Chairman Ray C. Bliss
of Ohio said that in most of the
nation's big cities the Republi
can party "generally Is out
manned, outorganized, outspent
and outworked."
The report, approved unani
mously, called for better party
organization, more money and a
greater effort to win labor and
minority groups to the GOP
cause.
Demos to File
For Precinct Jobs
Democrats will have an oppor
tunity to file for precinct com
mitteeman or committeewoman
at the Democratic county plat
form convention Jan. 20, party
officials said Friday.
It will be easy to sign up, the
committee announcement said.
Any registered democrat '1
eligible to file but must live In
the precinct for which the posi
tion is sought.
All present precinct commit
tee officers must also file for
re-election.
The convention will be held
in the Veteians Memorial Build
ing, Eugene.
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WE'VE SOLD PIT Several times, but now we have plenty of all the necessary
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ANNOrNTING ourjiew delivery service In city limits orders over $5.00 free under
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WE'VE TAKEN OVER the service agency for Eugene Laundry and Cleaner Company
formerly located several doora away. Laundry and dry cleaning in before 9 a.m.
back the same slay, what a service!
NEW STORE HOURS 8 a.m. to 6 p.m.
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day's action would expedite "the
disposition of our pending con
solidation proceedings by the
interstate commerce commis
sion." The Justice Department last
fall strongly criticized a pend
ing merger plan of the Seaboard
Air Line and Atlantic Coast
Line Railroads, one of about a
dozen now under review by the
Interstate Commerce Commis
sion. To File Soon
The Pennsylvania and the
Central said they hoped to file
a formal application to join in
Barking Dog
Saves Family
From Blast
CHICAGO Wl A barking
aog savea a Negro family from
possible injury from a dynamite
blast Saturday as they planned
to move into a white neighbor
hood. The barking roused Walter
Speedy, 42, a machinist who
opened the front door of his
South Side apartment and
found three sticks of dynamite
at the end of a sizzling fuse.
Speedy tried to douse the
bomb, then hurled it to the
street seconds before it ex
ploded. The blast shattered all
the windows of the three-story
apartment building but did not
injure Speedy or his four
daughters sleeping In a front
room.
It was the second bombing
attack in a month on Speedy's
property. He said the attacks
followed threats against his
moving into a white neighbor
hood. The first bombing Dec. 18
ripped the vestibulo of a newly
purchased home at 5439 Union
Ave., in a predominantly white
block. Speedy planned to
move his family into this dwell
ing Saturday under police pro
tection. Today's blast occurred at
2708 Indiana Ave. in front of
the three-story building the
Speedy family was vacating.
Three other families live in
the building, one of the few
still standing in an area being
redeveloped.
Asleep elsewhere in the
apartment at the time the bomb
was placed were Speedy s wife,
Yvonne, 39; a son, Walter, 13,
and a nephew, John McCants,
17. The daughters are Yolan-
da, 18; Yvonne, 17; Laverne,
13, and Cammie, 4.
Back Pay Reminder
GUAYAQUIL, Ecuador UPI
Twenty members of the muni
cipal band played an impromptu
concert in front of city hall un
til Mayor Otto Qulntero Rum
bea smilingly appeared to say
thanks. Then they put away
their instruments and reminded
Rumbea the city owed them
three months back pay.
J3J
GENE KOCH
Gluten Bread
Gluten Toast
Gluten Crackers
Saf flower Oil
Saf-flower Margarine
Saf-flower Mayonnaise
Saf-flower Capsules with 11-8
a new Pennsylvania-New York
Central transportation Co. with
in 30 days.
Stockholders of the two roads
will be asked for their approval
at annual meetings scheduled
for next May.
The decision binding the Cen
tral to a future with the Penn
sylvania was expected to im
prove chances for two other
Eastern railroad mergers the
Central heretofore has fought,
fearing isolation.
One of these would unite the
Chesapeake & Ohio and the Bal
timore & Ohio Railroads. In the
other, the Norfolk & Western
Railway seeks to combine with
the Nickel Plate and Wabash
railroads. It was assumed the
Central now will withdraw op
position. Railroad analysts have pre
dicted that in a probable even
tual realignment of Eastern car
riers into three merged systems,
the Pennsylvania will be re
quired to sell off its 33.8 per
cent stockholding in the N&W.
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