The Bend bulletin. (Bend, Deschutes County, Or.) 1917-1963, May 19, 1962, Page 4, Image 4

Below is the OCR text representation for this newspapers page. It is also available as plain text as well as XML.

    t.v.-.' ....em- mm, .i-t'- i .- -v.
. :vT-. .".",: -J
v4nc everything was so nice and clean
Saturday, May 19, 1962
An Independent Newspaper
Phil Brogan, Associate Editor Jack McDermott, Advtrtliing Manager
Cltnn Cushman, Cansral Manager Lou W. Mayers, Circulation Manager
Loran E. Oyer, Mechanical Superintendent William A Yatei, Managing Editor
Robert W. Chendler, Editor end Publisher
Entered Second Can Mailer. January I. 1517. at the Poll Ortloe at Uend Oregon, under Act of Slarcb a. IS79, Pub
Vehed dally except Sunday and certain IwUdayi by The Bend Bulletin. Inc.
Lumber industry spokesmen af work in
Washington, where if may do some good
For some reason there's a general
misunderstanding that the current ills
of the lumber Industry are new, that
they have come into being only during
the past couple of years, and that they
are temporary. A smaller group thinks
something called the Jones Act is a
major causative factor in the sickness.
The Jones Act can largely be dis
regarded excepting for mills which
ship their products to the East Coast,
and which ship by water. Such mills do
not exist in any great number, and they
are rare on the sunshine side of the
Nor, under all present circumstanc
es, are the problems temporary. Market
ing disadvantages with competing
materials, which have promoted their
wares heavily over a period of years,
are going to be difficult to overcome.
This difficulty cannot be cured over
night. A more rapid cure will require
some different medicine.
The problems did not spring full
blown In the Inst 24 months. Long
standing factors have been aggravated
seriously In the past ten years. The
serious part of the business became
apparent to some far-sighted operators
as far bark as 1954 and 1955.
Prior to that time it was not diffi
cult to make money in lumber, compar
ed to present-dny standards. And
money was made, lots of it In the ag
gregate. So much money was made
that r Pennsylvania Congressman nam
ed Chudoff d e c I d c d to start looking.
Others put the pressure on General
Accounting Office, an agency of Con
gress, to carry on an investigation.
The result of the two Investigations
were two reports. Both reached some
what the same conclusions that government-owned
timber was being sold
at prices which were too low, that profit
margins In the industry were too high
for the risk Involved and the amount
of capital invested.
Such charges were not completely
true, although there was some basis in
fact for the conclusions. In a rather in
formal manner, members of Congress
began putting the bent on federal agen
cies, particularly the Forest Service, to
do something about It. And the Forest
Service did.
From the Industry standpoint, the
timing was all wrong. Wages had been
increasing at a pretty rapid rate. Prices
of the finished product had not kept up.
About this time the full effects of com
peting materials began to be felt in con
struction. Now, it's pretty hard to get a
lumberman to talk about anything
other than the use of wood in any kind
of construction. Only a few years ago
they built their own mills of steel. And
public bodies which had lumbermen on
their boards of directors were as likely
to build with concrete as wood.
As a result of the pressures, a
change in attitude on the part of the
Forest Service, and the market situa
tion, the price of lumber is in a very
poor position with its price of ten years
ago, particularly when the cost of labor
and stumpage is considered. And the
cost of stumpage in recent years has
gone up much faster than the cost of
This would be all right, if the norm
al marketing arrangement existed be
tween the Forest Service and the buy
ers of its timber. In fact it does not,
because the service owns such a large
part of the available stumpage. The
entire attitude of the USFS in the field
is one of "let the buyer beware."
This, too, might be all right, if the
owners and operators of mills were the
only ones concerned. But many com
munities have grown up around the
national forests in the Northwest.
People who have no direct interest in
any lumber company have a vital inter
est in the progress of the industry as a
whole, for upon its health depends their
abilities to pay their mortgages, to send
their youngsters to school, to pay their
taxes, and so forth.
The government, when it controls
as much of the country as the federal
government does of the lumbering
country of Oregon, owes something to
those who are its somewhat unwilling
tenants. Were the monopoly as com
plete, and controlled by U.S. Steel, the
government would step in to protect its
Well, this group of citizens, in this
area, needs protection more from the
government than it does from U. S.
Steel. And the lumbermen are finally
taking the story to Washington, where
there's a chance to accomplish some
thing, rather than talking to each other
at trade meetings. They need all the
help they can get.
happens, but it never seems just right
Each year or so, it seems, some ex
cellent teacher or administrator leaves
every small school system. Replace
ments are in the making, often within
the system, but it's never easy to see
someone go who has made a real mark
on the system.
Such Is the case with the announce
ment that Warren Thompson Is leaving
Bend's Junior high school at the end of
this year, going to California for what
Humor from others
A Navy recruit on his first ocean
trip was taking i,n exam for promotion.
One of the questions was, "What steps
should be taken in case of a leaky tube
must seem to be a better opportunity.
It's almost impossible to argue with
this reasoning. People come and go in
every community. It is just more notice
able in the smaller towns of the country
when a friend leaves.
Thompson has been, from our ob
servation, a real asset to Bend's school
system and the youngsters who attend
It. It's no fun to wish him farew ell.
In the boiler?"
He wrote, "The boiler-room ladder
preferably two at a time!" Phil-news.
Estes hovered near Ike,
HST, JFK af Ray burn rites
By Drew Pearson
WASHINGTON - The tracks of
Billie Sol Estes, the mercurial
Texan, run into very unusual
places. If by any chance you were
at the funeral of the late Speaker
Sam Rayburn, you would have
noted the fly-by-night millionaire
from Texas hovering not far from
President Kennedy, ex-President
Truman and ex-President Eisen
hower. He was Inside the enclosure set
off for the Rayburn family and
the top officials of the nation, who
had come to mourn. Doubtless,
the President and the ex-Presidents
did not know he was there,
but he was.
The real secret of Billie Sol
Estes' success is the American
political system in which money
talks in political campaigns and
later expects to be paid off. This
Is especially true in the state of
Texas, second biggest in the un
ion, with a tremendous area for
a candidate to cover and with a
lot of oil money thrown into the
political pot behind certain candidates.
Billie Sol Estes was a young
man, generous with the campaign
dough for various candidates, and
the dough now turns out to have
belonged to someone else.
Thus, when Sen. Ralph Yarbor-
ough called a meeting of friends
to say that he was being blacked
out by the big Texas city news
papers and wanted to start a ra
dio Information campaign to
reach the people, Billie Sol Estes
coughed up. So did various oth
ers. ,
Today, money is talking big in
another Texas campaign, the race
for governor between ex-Secretary
of the Navy John Connally,
Lyndon Johnson's friend, and Don
Yarborough, a friend of Senator
Yarborough but no relation.
Money is flowing into this cam
paign almost like oil flows
through the pipelines of Texas,
and a lot of contributors will ex
pect to get paid off politically aft
erward. In fact, it looks as if some
of them were getting helpful con
tracts already. Note the contract
given Brown and Root to build
the space agency outside Houston,
and remember that Brown and
Root have been the heaviest con
tributors to Lyndon Johnson in
the past and that he is No. 1
executive in the Kennedy admin
istration re space activities.
Rival Texans
Sen. Ralph Yarborough of Tex
as and Vice President Lyndon
Johnson of Texas, who don't love
each other, have an arm's-length
agreement regarding political pa
The Vice President has the in
side track with the White House
on all federal jobs in Texas, but
those which require Senate con
firmation are split 50-50 between
him and Yarborough. This is be
cause Yarborough has the power
to block confirmation of men
Johnson recommends. On the oth
er hand, federal jobs in Texas
which don't require Senate con
firmation go to Johnson automa
tically by courtesy of the White
Thus, Johnson and Yarborough
have split the federal judges as
follows: Judges Sarah Hughes of
Dallas and James Noel, Jr., of
Houston were recommended by
Yarborough. Judges Leo Brewster
of Fort Worth and Adrian Spears
of San Antonio were recommend
ed by Johnson.
The two men also split the U.S.
attorneys, with Woodrow Seals
of Houston and William W. Jus
tice of Tyler going to Yarbor
ough; and Barefoot Sanders of
Dallas and Ernest Morgan of San
Antonio going to Johnson.
A somewhat different split was
made on collectors of customs
and U.S. marshals. Johnson ap
pointed four collectors, and Yar
borough appointed four marshals.
However, when it came to split
ting the support of Billie Sol Es
tes, it s a different story. During
the presidential inauguration in
January 1961, the new Vice Pres
ident appeared friendly to Billie
Sol and was reported ready to
take him away from Yarborough.
When Texans called Johnson s of
fice to arrange for trips to Wash
ington for the inaugural, they
would get calls within a matter of
minutes from Billie Sol Estes in
viting them to fly to Washington
in his private plane.
But you can wnte it down that
there Is no rivalry between the
two Texans over Billie Sol Estes
Jerry Holleman, the Assistant
Secretary of Labor who got fired
for taking $1,000 entertainment
expense money from Billie Sol
Estes, was head of the Texas
American Federation of Labor.
When campaigning for the Kennedy-Johnson
ticket, he told Tex
as labor leaders that if the ticket
was elected, he would go to Wash
ington as either Secretary of La
bor or Assistant Secretary, and
that other Texas labor leaders
could, therefore, move up. That
was the way It happened. . .When
Billie Sol Estes flew up to Wash
ington for the $100-a-plate Demo
cratic dinner last January, he
withdrew $40,000 In cash from his
bank for the trip. The mystery
still remains as to how it was
spent. Part of the trouble inside
the Agriculture Department is the
appointment of assistants to sena
tors and congressmen to key po
sitions. Emory Jacobs, who was
ousted for allegedly getting a gift
of clothes from Billie Sol Estes,
was former assistant to Sen. Bob
Kerr of Oklahoma. Kerr is a pow
er in the Senate and a good man
to keep on your side. . .William
Morse, an agricultural official
who lost his job when he ducked
out on answering questions about
Estes, was formerly assistant to
Rep. Carl Andersen of Minnesota,
a potent Republican member of
the House Agriculture Commit
tee. Gift - acceptance standards
have always been lower on Capi
tol Hill than in the executive
branch of government.
Holt receives
ROTC honors
Special to The Bulletin
Eugene Ten third-year cadets
in the University of Oregon's Ar
my ROTC program have been
tentatively designated as Distin
guished Military Students for the
1962-63 school year, according to
Col. Louis D. Farnsworth. Jr..
professor of military science.
They include Jack N. Holt,
Bend. A junior In pre-Iaw. he is
the son of Mr. and Mrs. Floyd
Holt of 10 Rocklyn Road, Bend.
Permanent designation as dis
tinguished military students will
be made upon each cadet's suc
cessful completion of summer
training at Fort Lewis, Wash.,
June 24 to August 4.
Harkins fours
new 'front line
BANGKOK, Thailand (UPI)
The commander of the combined
American task force in Southeast
Asia today toured the newest
front-line area ot his command
Gen. Paul D. Harkins visited
U.S. Marino Corps units bivou
acked within gunshot range of the
Laotian border before returning to
his headquarters in Saigon.
While the Marines dug in and
set up field encampments, planes,
trucks and helicopters shuttled in
arms and equipment being un
loaded from supply ships of the
U.S. 7th Fleet at Bangkok's ma
jor port areas.
Although Harkins is the over-all
commander of U.S. forces now
committed in Southeast Asia to
check Communist aggression and
expansion, U.S. Army Lt. Gen.
James L. Richardson is command
er of the newly landed forces In
Richardson conferred with high
Thai military and defense officials
on preparations for another 1,000
or more American combat troops
scheduled to arrive here soon to
help bolster Thai defenses.
The tremendous amount of arms
and equipment being transferred
from the 7th Fleet supply ships
to the ground forces encamped in
the strategic northeast areas of
Thailand made it clear the U.S.
combat units were prepared for
serious action.
Because of a three-day holiday
in celebration of the birth of Bud
dha, there was a lull in diplo
matic activity. But there was con
tact between Thailand and its al
lies in the eight-nation Southeast
Asia Treaty Organization
(SEATO) on the necessity of send
ing more SEATO troops to this
o s, new
eating place,
in operation
Start of the 1962 tourist season
finds a new eating place, Sam
bo's, in full operation on U.S.
Highway 97 near the south city
limits of Bend.
Housed in a new building con
structed to specifications to meet
the need of the big restaurant,
Sambo's faces the Three Sisters,
framed in picture windows, just
west of the highway. The build
ing, with a spacious dining room
capable of accommodating close
to 100, and with additional space
in the restaurant part of the struc
ture, architecturally fits into the
piney landscape and features na
tive stone and woods.
This is the fourth restaurant of
Sambo's system in Oregon. Bob
Roberts of Sacramento, Calif.,
heads the system as president,
with Sam Battistone, Jr., Med
ford, as secretary.
Tommy E. Gouchere, who came
here from Medford, Is manager
of the new restaurant.
Acclaimed one of the most mod
ern restaurants in upstate Ore
gon, Sambo's occupies a building
constructed adjacent to the new
Union Oil Co. plant on the South
Highway by Fred H. Meyers and
Fred E. Meyers, father and son.
Ernest E. Steinlicht was general
Bend Rotary Club members met
at Sambo's Wednesday noon, and
the Bend Chamber of Commerce
will hold its forum luncheon there
on Friday, May 25.
o "V , ...- . ,4 i M 4 .1. '
m . -Y. ii
V- ; , ; ,' J
f .. . .
QUEEN CANDIDATE Jefferson county's queen candidate
for the Central Oregon Junior Rodeo is auburn hatred Colleen
Thomas, 13 year old daughter of Mr, and Mrs, Jack Thomas
of Madras. Princess Colleen pictured with her horse Susie,
won the Jefferson county spot on 'the rodeo court as a result
of topping 10 contestants in a horsemanship and appointment
contest sponsored by the Madras post of tha Veterans of
Foreign Wars.
Sen. Mundt says Demo lawmakers
blocked action aimed at Estes
Karl Mundt, R-S.D., said Friday
that Agriculture Dopattment offi
cials revoked cancellation of Bil
lie Sol Estes' cotton allotments
after meeting with Estes and two
Texas congressmen.
The congressmen were identi
fied later as Sen. Ralph Yarbor
ough, D-Tex., and Rep. J.T. Ru
therford, D-Tex. An aide to Yar
borough said the senator was act
ing in behalf of a constituent the
same as he would have for any
other." Rutherford was not im
mediately available for comment.
Mundt said: "This was more
than favoritism. This was com
plete capitulation to a guy out on
the make."
Mundt is a member of the Sen
ate investigations subcommittee
which ordered a full investigation
of the case Thursday shortly be
fore President Kennedy told his
news conference that government
investigators were "staying right
on Mr. Estes' tail."
Kennedy said 76 FBI agents had
been assigned to the case and
promised that if members ot the
executive branch are involved
they would be "immediately dis
ciplined appropriately."
Four Lose Jobs
Two Agriculture Department of
ficials have been fired, a Uiird
quit and a Labor Department of
ficial resigned because ot the
Estes affair.
Kennedy said he had not been
able to find any favoritism toward
the indicted Texas farm magnate
as of now but said new facts
might come out
Estes has been Indicted by a
federal court in Texas on charges
of fraud concerning his dealings
with the government grain stor
age program and fined more than
$500,000 for misusing cotton allot
ments. Ho was once a member of the
government's cotton advisory
Mundt said that a briefing given
to subcommittee members Thurs
day showed the case was "sub
stantially worse than any of us
Describes Schema
He told newsmen of a complex
lease-sale arrangement under
which Estes, in effect, allegedly
took over allowed cotton acreage
of farmers whose land had been
taken away by seizures under the
doctrine of eminent domain.
In July, 1961, he said. Agricul
ture Department officials got sus
picious and interviewed 51 of 116
farmers who had bought cotton
land from Estes, then leased it
back to him with purchase rights.
Mundt said only five of them re
garded it as a "bona fide sale,"
18 said they felt it was an im
proper transfer of cotton allot
ments and others showed varying
understanding of the arrange
ment. On Dec. 15, 1961, Mundt said,
Agriculture Department General
Counsel John C. Bagwell recom
mended that Estes' cotton allot
ments be cancelled "and they
were cancelled."
SALEM (UPI) Public Utility
Commissioner Jonel C. Hill Thurs
day denied toll free service to
customers of Clear Creek Mutual
Telephone Co. of Redlands, in
Clackamas County, because not
enough of the customers wanted
Quality Products
EV 2-3131
6 A.M. to midnight