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About Eugene register-guard. (Eugene, Or.) 1930-1983 | View Entire Issue (March 1, 1963)
FPC Chief Assails Morgan Statements WASHINGTON chairman Joseph C. Swidler said Friday it is "absolutely untrue" that the Federal Power Commission's handling of gas rate cases has lost consumers millions of dol lars. Swidler replied before a House commerce subcommittee to Commissioner Howard Mor gan's accusations against and criticisms of the commission. Swidler accused Morgan of posturing in attacking the com mission, and said Morgan's lct , ter to President Kennedy declin ing further service on the com mission was "not an honest let ter." 'Striking an Altitude' "The letter illustrates Mr. Morgan's belief that striking an attitude will do a job," Swidler said. Morgan's letter, which criti cized in general terms the cali ber of men serving on federal regulatory agencies, touched off the subcommittee inquiry. Mor gan spent two days in the wit ness chair explaining his posi tion. Swidler said that despite Mor gan's insistence that he was not talking about individuals when he said "ordinary men" on the regulatory agencies yield to in dustry pressure because of ti midity, "I had no difficulty un derstanding it." "It was a notice to everyone who can read that it was not a general lecture but was aimed at least in part at his colleagues nn the commission," Swidler said. Swidler said he doubted whether the letter would be of any help to the President and added: 'Not an Honest Letter' "And Fin not certain it was intended to do so. It was not an honest letter. It was not intend ed to help but to embarrass both the President and Mr. Morgan's fellow commissioners." Swidler, whose voice showed deep emotion at times, said the commission has been aggressive in protecting consumer interest during his two years as chair man and is now operating more successfully than ever before in its history. "I have never failed in the conduct of my work as chair man to do what 1 thought was right," he said. "As far as I know, 1 have never reached a wrong decision for reasons of timidity." As to Morgan's assertion that the FPC settled refund cases out of court for $150 million less than the commission's staff had recommended, Swidler said the higher figure f,irst suggested by me stall was merely a bargain ing position to begin negotia tions. All the staff agreed, he said, that the amount actually refund ed represented the most that could have been attained through litigation. Morgan's charge, he said, "does a great deal of damage to a very important and very successful program." Tempers Touched Off Thursday's session, in which Morgan delivered a point-by-point indictment of the commis sionand in effect, against all the regulating agencies set off some tempers. At one time, four committee members were shouting across the table. Morgan read a long statement giving the reasons he felt im pell"' to leave the commission to which Kennedy appointed him two years ago. Some of his main points: In clearing up a gigantic backlog of gas rate refund cases, the commission settled them without complete adjudi cation. This, he said, led to re funds of about $150 million less than the consumers would have received. Said Morgan:"The question is whether $150 million in hard earned consumer cash in a proper price to pay for helping clear up the commission's back log." Electric and gas utilities. he said, are "syphoning off hundreds of millions of dollars" by paying taxes on a liberalized depreciation formula but hav ing their rates based on the full tax, without the liberalizing formula. "In other words," said Mor gan, "their rates are based on phantom taxes which may nev er be paid." The FPC has set up a technical advisory committee representing the natural gas in dustry which Morgan said raises questions of conflict of i interest and poses a threat to the commission's integrity. Before Morgan read his state ment, Rep. John B. Bennett, It Mich., had called Morgan's let ter to the President "gobbledy gook and hot air." The letter, written in general terms, contended that govern ment regulation can "easily be come a fraud upon the public" unless men of courage and in tegrity are named to the agencies. Rep. William L. Springer. It Ill., read into the record infor mation brought out at Morgan's Senate confirmation hearings two years ago. It showed that Morgan had failed to mention on his government forms that he had been arrested twice as a youth. Words Exchanged Morgan said one arrest had been expunged from the rec ords and he had forgotten the other which grew out of a fight in which he went to the assist ance of his employer. It was then that tempers be gan getting hot." Subcommittee Chairman Orcn Harris, D-Ark., told Springer he had almost stepped over the bounds of proper questioning, and Rep. John E. Moss, D-Calif., also had words with the Illinois Republican. But with the backing of Rep. J. Paul Younger, R-Calif., Springer stuck to his guns. As he recited this record of Mor gan's arrests, Morgan remarked wryly: "It is ironic to have to go through this to take a federal position and then go through it again when I leave that position." Fair Trade ill Revived Cigarette Sales Target of Measure From AP, VPI Rfpnrts SALEM A cigarette fair trade bill, defeated at each legislative session in past years, was intro duced in the House Friday. It would prohibit cigarette re tailers and wholesalers from selling below cost, which now is done at many supermarkets. It would be enforced by a di rector of cigarette licenses, who would make every cigarette dealer buy a license. The bill was introduced by Rep. Norman Howard, D Port land, and six others. Study Proposed Rep. Shirley Field, R Port land, sponsored a resolution to create an interim committee to study practices and regulation of the insurance industry. A bill to allow physically dis abled persons to park in any time-restricted zone was sub mitted by Rep. William J. Gal lagher, R-Portland. The Senate State and Federal Affairs Committee gave a "do pass" recommendation Thursday to a measure calling for elim ination of liquor purchase per mits. The committee also approved memorials to urge the federal government to provide funds for an anti-water pollution program at Oregon State University and to stay out of the legislative ap portionment field. Protests Voiced The House Natural Resources Committee heard protests to a proposed natural resources de partment from the State Forest ry Department, which would be incorporated in the new agency. The Senate Committee on La bor and Industries, with two alternative workmen's compen sation bills finally before it, con tinued taking testimony on the subject that sparked so much heat in 1961. One is the governor's bill, con sidered a compromise and ten tatively accepted by labor. The other is management's bill to give private insurance firms a large share of the industrial ac cident insurance business, now a state monopoly. f 1 3s ,JC f'-T'j-' EUGENE REGISTER-GUARD, Friday, Mar. 1, 1963 Pago 3A Mediation Facilities Urged by Governor $6.5 Million (AP Wlrcnhoto) Oil heiress Mrs. Cecil Blaffer Hudson, of Houston, Texas, is shown with her attorney, Percy Foreman, after winning a property settlement Friday of $6.5 million, a possible record, in her divorce from multimillionaire engineer - busi nessman Edward J. H u d s o n. The Hudsons were married in 1945 and separated in 1960 when he sued for divorce. They have two sons. Airline Stewardess Killed In Mishap at Boston Airport BOSTON UV-An off-duty air line stewardess, rushing to catch flight to Newark. N.J., was killed Thursday night when she ran into a whirling propeller of a four-engine DC7 at Logan In ternational Airport. Witnesses said the steward ess, Miss Barbara Hill, 20, rush ed from the end of a loading platform and ran toward the plane, about to take off for Newark with 24 passengers and a crew of five. One airport employe said he saw only a whirl of colors when the girl ran into the plane's No. 1 propeller, the farthest out on the left wing. It was hours before officials were able to positively identify the decapitated, badly mangled body, through fingerprints. Two attendants tried to stop the 5-foot-6-inch brunette when she started toward the plane. But she apparently failed to bear their cries and a moment later as witnesses watched, hor ror struck, she ran into the propeller. SALEM 1. Gov. Mark Hat field sent a special message to the Legislature Friday asking it to provide facilities for helping to solve labor disputes. He expressed disappointment that bolh employers and labor unions in the construction in dustry have rejected a proposal for a state labor-management relations committee to provide for mediation in labor disputes. So he invited tin Legislature to work out its own plan to "encourage voluntary and time ly resolution of disagreements." He said there is need for a public agency to mediate, find the facts, and offer voluntary arbitration. The proposal for a state la bor-management relations com mittee was made by the Gov nor's Commission on Iabnr Managment Relations, consist ing of representatives of labor, management and the public. But he said the construction companies and unions rejected this concept because of the in terstate nature of construction disputes. "1 have even been told in matter-of-fact tone that there is nothing the Legislature could j write in this area that would be heeded," Hatfield said. He said he couldn't under stand why representatives of management and labor, who agreed to having the statewide committee, "would agree to something their constituency would later refute." Hatfield emphasized the im portance of the construction in dustiy because of construction and building strikes have se verely crippled the state in past years. "I find." he said, "the inter vention of government in labor management relations and free collective bargaining repugnant. "But there comes a point, when negotiations break down, that the public interest is para mount at the bargaining table." He said the State Conciliation Service has been ineffective, and that the state "is simply without the tools to do the job when governmental action is indicated." He added that "it should be our equal concern to look to ward the cause of dispute and strive to find preventive medi cine rather than surgical care." He said there is danger of an other construction strike this summer. And he said he hoped that single anniversary dates could be established for re negotiation of indrstry-widc contracts, in stead of having arious union contracts expire at various times. Ex-Junction Man Dies Here at 81 William Francis Ewer, a resi dent of the Junction City area for 71 years, died Thursday in Eugene. He was 81 years old. Until about a year ago, Ewer lived on a small farm on Route 1, Junction City. Besides farm ing his own property, he worked for other farmers in the area. He was a member of the Junction City Grange, the Po mona Grange, and the Christian Church. Funeral services will be 10, a.m. Saturday in the Junction City Chapel of the Murphy Fu-. ncial Home, with Rev. Gilbert Knox officiating. Those wishing may contribute lo the Christian Church Pew Fund in his memory. Interment will be in the IOOF Cemetery. Bond Forfeited On Driving Count Mark H. Hathaway, Lane County constable until Friday, forfeited a $200 bond in Eugene Municipal Court Thursday on a charge of driving while under, the influence of intoxicating liquor. The charge against Hathaway, 41, of 1321 Betty Lane, Eugene, arose as the result of an acci dent Dec. 3, 1962, in which a car he was driving struck a parked pickup truck. Hathaway resigned his posi tion as constable, affective Fri day, saying he "just couldn't go along with home rule." The of-' ficc of constable was to be abol ished under the Lane County. Carter with the office of con sti ble lo be integrated within tr a Lane County sheriff's office. vn: raw PAY LESS DRUG STORE-63 WEST BROADWAY, EUGENE AFTER-INVENTORY Ml ftf WW $20 000 STOCK REDUCTION!!! DUE T0 0UR inventory held recently, we must reduce our stock BY $20000 to FN ABLE US TO DO SO WE ARE PASSING ALONG TO OUR CUSTOMERS MERCHANDISE THAT IS OVERSTOCKED AT SENSATIONAL LOW PRICES . . . LISTED BELOW ARE BUT A FEW OF MANY 'ITEMS THAT HAVE BEEN REDUCED... SOME ITEMS ARE ONE OF A KIND OR LOT SIZES ... LOOK FOR SPECIAL "MARKED DOWN" SIGNS THROUGHOUT THE STORE FOR ADDITIONAL SAVINGS . . . SHOP EARLY FOR BEST SELECTION .. . SUNDRY 1.19 Value 1.19 Value Seamless Non-Run Nylons... 21.00 Terry Baby Panls 21.00 7.98 III "Big Ben" Value Alarm Clock i 98 t Y. Kitchenette Value Sunbeam Wall Clock - Value U.b. flail 6.95 12.95 Value 4.49 Value Stainless Steel , 1 Pt. Vacuum Bottle Stanley Chenille Bedspread 54"x54" TruFlex Plastic vie Tablecloth Value Shower Curtains 72"x72" vie Braided Rugs S&r. 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