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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Feb. 21, 1938)
Monday, February 21, 1938 Fori' Tht Copltai Journal, Saltm Oragbti CapitalJJournal SALEM, OREGON established march L mm . - lf.am.nM PiiMUhMl Ever Afternoon stsost at 444 Chstnekat so-set TlephonBnlness Of!lc Mil Nm Roam 1STJ; snclety editor SS71 OEOROE POTMAM. riJU. LEASED WIRE SERVICE OF THE ASSOCIATED .TRESS AND TBS UNITED MM SUBSCRIPTION BATES BY CARRIER! Weekly. Monthly. .0: On Yar. tl MY MAIL IN OREOONi Monthly, $.50; Biz Months, SMO: On Y. MM, UNITED STATES OUTSIDE OREOONi Monthly, tA; 01s Month, WOO; Tsar, 10.00. Th Associated Press I xeluslvly entitled le th as for publication ol II nm dispatch oredlted to It or not otherwise rditd In thli paper, nnd also loou news puousnca 'With or without offtiut to friends otto I sketch your world txoctly at it got. Tl Wnu fluf r( tha Dilommn Th financial difficulties ommission created to arrange hibits at the New York and San u. oil in measure result of legislative parsimony. the commission Is tnat it nas laiiea to lasmon iva t"nu i the cloth available; the blame to be laid on the legislature s shoulders, that it did not provide more adequately for such an unuvi lining. I , When the commission was organised by the 1937 legis lature $50,000 was appropriated for its job, $30,000 for the San Francisco fair and $20,000 for the New York exhibit. At this date there remains only slightly more than half, or $15, 611.75 in the San Francisco account and $19,254.57 in the New York balance. Aside from $7500 paid on the expenditures to date have nd preliminary incidentals. Considering that New York is 3000 miles away in a sec tion of the country where San Francisco is spending hun HrH. nf thniManili nf dollars to attract people westward for its 1939 show, the $20,000 earmarked for the eastern exhibit is probably sufficient, particularly if spent In conjunction with neighboring states on a combined northwest display. But it is absurd to expect the commission to arrange and operate for $30,000 such an exhibit as Oregon should present t the Golden Gate exposition, where throngs of visitors from all parts of the country will be assembled and easily diverted Into Oregon. The commission contends al $100,000 to $150,000 to assemble and operate a creditable and effectfve exhibit, and argues that such an investment would be more than justified by the returns in tourists and new settlers and investors attracted. It is asking the state highway and game commissions to provide the needed funds denied it by the legi?'nt"re. Under the law neither the any authority to turn over any part of their revenues to any one else for disbursement for any purpose. Their's are trust funds to be administered for specific purposes. Either could probably expend reasonable sums on advertising exhibits of their own in the Oregon display eide to do so." 1. . ... It is not for them, however, nor fittingly for the world's fair commission itself to become parties to a scheme to thwart the intentions of the legislature as regards Oregon's expenditures for exhibits at the fairs. If the funds made available to it are not sufficient for its prescribed purposes the fair commission should ask the legislature for more when it convees again next January or, if that involves too great a delay, appeal to the emergency board which is organized to function in just such emergencies. It Is neither fair nor reasonable to ask others to be par ties to a scheme to thwart the will and authority of the law makers. ; Hitler Wave, to Torch ' Der Fuehrer told the world Sunday that Germany In tends to "defend th political freedom" of 10,000,000 Ger mans living in Austria and Czechoslovakia, in other words to dominate the Danubian basin and the Balkans and at the same time demand the return of German colonies lost during the war, Ha failed to pledge Austria's independence as had promised If Austria restored the Nazis to participation in government. He made it clear that Germany will ignore Great Britain and France as well as other western powers in the ab sorption of central Europe, which Is regarded as exclusively the Internal affair of Germany. And there will be no return io the League of Nations. - Germany formally recognized Japan's conquest of Man churia, upholds the German-Italian-Japanese pact against communism, has no territorial claims against France or Spain and demands that foreign press attacks against nazism cease. Hitler emphasized Germany's new unity, her growing might and further strengthening of the army. And there was no announeement of a more conciliatory attitude towards re ligion. In a distracted world, der Fuehrer knows what he wants and is going after it, which means eventually the conquest of Hungary and the Ukraine. Peace depends upon letting Ger many have her way, the supremacy of nazism and the de struction of democracy. Great Britain having been slapped by both Germany and Italy is apparently turning another cheek for a new blow and preparing a conciliatory policy towards the aggressors, which has forced the resignation of Foreign Minister Anthony Eden nd brought on a parliamentary crisis. If France protests German aggression, it will find itself deserted by Britain. The kind of a government Germany has is best described by Dorothy Thompson who was a foreign correspondent abroad for years and has the knowledge, information and background to discuss the subject intelligently. She says: "Chnwiany now ha u commander-in-chief of th army a neurotlt Austrian u-lun corporal and houM painter. It ntlr economic lira it regimented and controlled under that master economist. General Ooerlng, an es-artator. in religious philosophy Is dictated by a White Russian fa riatl and pseudo-Nletschean, Alfred Rosenberg. Its culture Is controlled by a fourth-rate coffee-house -Intellectual Dr. ooebbels. And Its foreign affairs are In the hands of a frivolous nasi careerist and former cham pagne salesman, Mr. Rlbbentrop, who. during his stay at th German .Embassy In London, displayed almost a genius for awakening distaste for himself and the regime which he presented. And looming abov them all Is th head of the seeret polltlcsi police, a pathological sadist, Mr. Hlmm- i5J? I!?-?81" .. "hom " "k'T to m,k" " oll-im. Oermsn officer retch. And this sextet. Is supposed to represent th leadership of a power ful renascent natlonl" F Hard Times Parry -By Methodist Club Independence Th Booster's club of th Methodist church enjoyed a -har-Umes" party on night last week at th home of Mrs. Ed Mof fltt, with Mrs. Percy Dickinson and Mrs. Mofflt as hostess. Editor and Publlsher in which Oregon's world's fair lor ana Msemum uitjun Francisco exposition in 1939 of its own making and the The fault which attaches to space rental at San Francisco been for travelling expenses that it will require an addition highway nor game boards has section and probably will de Th lda was carried out In their clothing, representing such char acters a "Raggedy Ann and "Andy, a blushing bride and young matron of th gay "Nineties." A very enjoyable evening wu spent by the lsdles and the refresh menu rved continued th theme of hard times. Embarrassing Moments f sswsa By Beck ssaiMsf VHfN Tht OPCK5TRA SUDMNLY """ STOPPfD PIAY1N6 RhSHT 4 THE MsCST OF VOUB CONVERSATION- ,r N HeadofPGE Offers Support To Bonneville (Continued from pat 1 culiar interest to Salem because Sa lem has exactly the same rates ar Portland, and, Incidentally, the rates for domestic service in Salem are lower today than the rates prevail ing In any other state capital In the nation." Commenting on the creation by the federal government of the ru ral electrification administration, Mr. Griffith said his company had pioneered in rural service, beginning "more than SO years to . . . with full -appreciation of the fact that the great majority of rural custom ers, when first connected, would be decidedly unprofitable." As antici pated, he said the service not only had become of great benefit to con sumers, but "many of our oldest ru ral extensions are now operating on a compensatory basis." In those parts of Oregon where the com pany's lines extend he said that "more than 65 per cent of all possi ble rural customers either now have or have available to them electric service from our lines." He added that the rural electrification admin istration has found that the nation al average of electrified farms Is less than 16 per cent. "Practically all the residents of Marion eounty depend upon our company for electric service." he said, "and. It may interest you resi dent of Salem to know, those liv ing in the smaller cities of this county and all rural customers have available to them exaetly the same rates for el tc trio service as you enjoy." Mr. Orifflth epoke favorably of tfce rural electrification adminis tration, but said '1 have had careful search made" and "I have found no case in which the rates fixed for rural service in a federally fi nanced project are within speaking distance of the rural electric rates available to the farmers of Mar lon county and other counties we serve at all times during the last 10 years." In support of this state ment Griffith cited, in comparison with the Portland General Electric rural rates, the rates of REA pro jects in 29 states, including the Ne halem Valley Cooperative Electric association of Oregon. Concerning the seven-county pro ject to be voted on April 8 he re called that In 1035 "groups of public ownership enthusiasts" submitted the proposal to the hydroelectric commission, that the commission made "a somewhat exhaustive In vestigation" and issued a volumin ous report," and that "the report gave full consideration to the econ omy resulting from the use of Bonneville power and still found the project of doubtful merit." "It is quite conceivable." he said, "that there may be areas in the state of Oregon In which public utility districts could be created with resultant advantaire to the public served, but It Is quite certain, disregarding all other evidence against the project and consider ing only the dispassionate analysis of the proposed project made by the state body, that no conservative man would willingly substitute the public utility district for the pro gressive, reliable and low cost ser vice the area of the project now has." Explaining that the cost of gener ating power" ta one of the smallest elements entering Into the cost of the energy when It reaches the me ter of the average consumer." Grif fith said: "The administrator of the Bonneville development is himself a strong supporter of the theory that the cost of transmission and distri bution ranges from eight to 10 times as much as the cost of generation. Bear in mind that the cost of trans mission and distribution varies lit tle whether the project Is publicly or privately owned and the entire cost of transmission and distribu tion must be charged entirely to the electric service." He stressed the point that while the utility district would eliminate the Hem of taxes "It must never be lost sight of that taking property from the tax roll has never been known to decrease the amount of taxes required to be raised, and the less property upon which the tax is levied the greater will be the sum of taxes paid by each remaining tax-paying property." Relative to comparisons of rates In various cities used as an argument by proponents of the proposed dls trtct Griffith said: "I have yet to see in the material distributed . any tables of comparison of rural rates, and the reason such tables are not being published and dis tributed, undoutedly. Is that the comparisons would be to the disad vantage of the proponents . . . "In the comparison of rates In cities, you will notice that the rates of the two largest municipally-own- ed projects in America are not used in the comparisons with rates In Portland and Salem. Seattle and Los Angeles are conspicuous by their absence. "During the building of Bonne ville," Mr. Orifflth said, "the elec tric utilities In Oregon have been fully cooperative. They wish the fed eral government to be successful and that the plan of federal devolep ment of the latent resources of the Columbia will be continued as rap- Idly as conditions may Justify." He cited the findings a few days ago of the federal power commis sion "that the investment in the Bonneville plant with two of its ul timate 10 units installed amounted to $53,188,800, but declared that only $11,683,400 of the total present In vestment would be allocated a rate base for the Initial Installation of 86.400 kilowatts. The remaining $43,000,000 of the existing Invest ment will be carried by the United States as a navigation Improvement subject to partial transfers there from to power Investment as and when additional generators are in stalled, so that It is estimated that when the entire Installation of 504.000 kilowatts of capacity has been made the governments total investment will be $74,000,000 of which only $43,000,000 will be allo cated to power." Griffith explained that "it is Im practical for private capital to un dertake the development of the Co lumbia on the scale forecast by the army engineers." "The Interests of the federal gov ernment In the development of the Columbia navigation possibilities should be preserved and encourag ed," he said, "so that the enormous federal contribution to the cost of producing power on the Columbia may be used to the Incidental but very great advantage of the people of the northwest in maintaining for many years to come a great souroe of potential low cost electric en ergy . . ." Speaking of the transmission of the energy by private agencies, Orif flth said: "I can foresee accumula tive and steadily Increasing advant ages to our consumers and to our investors as successive steps In the great development are made over the years ahead and I see, I think quite clearly, how all these result ant advantages can be secured with out losing to the ultimate consum ers one whit of the saving in the utilization of Columbia river energy. Portland General Electric company Is definitely on record as entirely willing to pass on to Its consumers all savings that may result from utilization of Bonneville energy through our lines." Orifflth charged public owner ship proponents, in their assertions that they were "squarely behind President Roosevelt" with having "strayed from the declared purpose of the president." He quoted Mr. Roonevelt as having said in a speech in Portland five years ago: "I do not hold with those who ad vocate government ownership or government operation of all utili ties. I state to you categorically that as a broad general rule the de velopment of utilities should : main, with certain exceptions. function for private Initiative and private capital." He quoted the president as having said of Portland rates that "they are lower than in many other cit ies throughout the country" With particular reference to Bonneville the president was quoted as having said: "State owned or federal owned power sites can and should properly be developed by the government Itself. When so developed private capital should be given the first opportunity to transmit and distil- News Behi theN; By RmjlMalion Wvahlngteti, rb. 31. There will be no Aiiglo-American debt settle ment until after the 1038 elections at least. That Is certain. If Mr. Roose velt or State Sec retary Hull had any Idea of such a settlement last week they have none bow. If they had any hope that this would be a answer to the trlnle alllaUUM of FaulMaUM dictators after the apparent seiiure of Austria by the Naxls, that hope is lost. What went on In Mr. Roosevelt s private po w -wow with his congres sional leaders and treasury -state of ficials will remain a permanently guarded secret, but this much Is clear: The London city crowd (business and banking) has been demanding that debts be scaled down before the coming Anglo-American trade agree ment be concluded The answer they are getting is the American congress would not ap prove such a politically haaardous agreement at least not before the election this fall. Consequently there is no possible chance of undertak ing it. New Farm Bill The agriculture crowd is not as confident about how the new farm bill will work out, as the high praise heaped upon the measure by Messrs, Roosevelt and Wallace might Indi cate. Of chief official concern are wheat and corn, under the ever normal granary idea, It is proposed to dou ble the normal carry-over in these crops. If crop control does not work thereafter to hold production down, Messrs. Roosevelt and Wallace will be right in the middle of another Hoover farm board situation with an overstuffed granary and noth ing to do with it. The technical trouble Is the farm mechanicians have never had a good test of crop curtailment In corn and wheat. The old AAA worked In drought years. Also this time. different sort of a quota system Is to be Invoked, if three-fourths of the farmers vote to invoke it. Un der the new system, quotas will not be Imposed until the crops are well along. Then the farmer will be ordered to sell ft certain amount and store the rest. This will certainly lead to complications, particularly as to com where the market is not in the elevator but in the hog. Thus the future success of the program from the governmental an- gle Is likely to be whether all the various penalties and regulations can really be made effective. How to Balance? Mr. Roosevelt told everything about balancing prices, except how he is going to do It. The reason for the omission seems to be the best in the world, name ly that it cannot be done. This skepticism, at any rate, represents the studied personal opinion of more than one of those very econo mists who helped to draw up the new administration price formula, Strictly non-political opinion among economists la that the presi dent cannot put up one group of prices and put down another. He has no means. He can use administration influ ence to hold back steel, cement, building prices by anti-trust threats and press conference talk. He can use mild measures (gold desterlliaa- tkm, relief expenditures, navy build ing, open market operations) to ex pand credit facilities and to cause government purchases in certain lines which tend to stimulate the general price level In sensitive sit uations like this one. He can do both things at the same time and thereby exert government pressure toward what he believes to be better balancing. But this is all the Influence he can use short of outright Inflation by spending spree. Apparently this Is all he In tends to do. Change in Psychology What the change of official talk and policy really amounts to there fore is a switch from the deflation ary psychology (gold sterilisation, press conference complaints against high prices, etc.) to mflationary psy chology (press conference talk for better commodity prices, desterlll- sation, open market activity, etc.) It will succeed to a degree, and pos sibly to a substantial degree at tbts moment (particularly In the stock market) because the business situ ation may be released at least tem porarily of depressing psychological Washington influences. Two reasons are authoritatively given for the change of administra tion heart on prices. . The control ling factor Is said to have been that the commodity price level was get ting too low In comparison with the existing debt structure. That is, neither the farmer; Investor nor in vestment corporation could pay off on obligations contracted at high price levels. If the current price level continued to sink. Another official reason unofficial ly offered la that the wage level could not possibly be maintained on bute the power on the basis of the best service and the lowest rates to give ft reasonable profit only." ,,:.., .,.,.1, is , I ON 'PINS AND NEEDLES' wis east of New York hit show bearing that name when Mrs. Eleanor Roosevelt was found In audience. All players In revue which Is to play a "com mand" performance In Washington on Invitation of Secretary of Labor Perkins are garment workers. Eight of 10 Portland to Portland, Feb. 21 (P) Eight of Portland ! ten sawmills were scheduled to operate this week with more than 1700 men employed. The number is mill payroll last summer, and the largest stow msjor operations were hslted by th AFL-CK) Jurisdiction al conflict In August. Union aUMatson will b divided evenly. wMfa the CIO Installed at the West Oregon, Inmaa-Poulsen, Clark ar Wilson and Mutesjontah Lumber ex Box plants, and the Jones, Portland Lumber mlHs. Southeast Portland and B. P. John son asiil under the APL. B. P. Johnson employes received an APL oharter last week, union of ficials eiaanlng S per cent of the M workers. Company officers said the plant would reopen on a five day week basis wHh the removal of Puhlman fo Attend Meeting J. W. Puhiman, manager for the Shell Oil company here, will leave shortly for Portland to attend the company's annual sales conierenee. Celebrating a quarter century of ueeeesful bueiness, the conference this year, knows as the silver jubi lee, opens at the Oriental theatre, March 4. promptly at 9 a.m., with an elaborate road show of drama tie novelties portraying the com pany's adverttaing and merehan dtaing plans for the current year. Unveiling of the world's largest book, a giant volume twelve feet high, which opens to a width of twenty feet, will reveal Shell's news paper advertising theme. Real eknrutetw eosne to life in the 11 Inftrations, ewaeting the advertise ment In addition, a full length talk ing picture, produced in Hollywood especially for the ocoaslon, le bill ed during the show. Afternoon ses sions concerning )beH's marketing activity will be foUowed by a ban quet and entertainment, said Puhl man. Executives from the company's San Francisco office attending the meeting Include R. F. Schroeder and R. T. Collier, assistant general sales managers; L. E. David, opera tions manager; R. O. LancUs, ad vertising manager; R. B. Jensen, merchandising manager; Norman Strouse, J. Walter Thompson com pany, advertising agency. Argentina reports that bumper crops and favorable price have brought almost "boom" prosperity. a continuously falling price level. However, the first reason Is enough. Story of an Egg Nog Dignified Speaker Bankhead stir red a tempest in a cocktail shaker when he walked Into the house res taurant, said he was not feeling chipper and asked that an egg-nog th-h-hat high be sent up to his office. Rumors that he had taken to egg-nog spread through the lower leg isla ture (sometimes cal led the lowest) and caused so many personal Inquiries at the speaker's office that the genial speaker became some what nettled. To each and every Inquirer he patiently (at first) explained (a) that he frequently Indulged In non slcoholic egg-nogs as he found them healthful (b) that If he want ed anything strong he could not get It In the dry house restaurant, and i whothrtt ts affklne Burning, Gnawing Pains In Stomach Relieved Neutralise irritating adds with Adla Tablets. Help to prevent a sore. Inflamed stomach, yet eat what you want Adla gives relief or your money back, J. O. Perry, Druggist. Mills in Operate almost two-thirds of local saw an AFL boyoott on its products. It suspended operations last week. The West Oregon company had failed to complete an agreement with tne CIO union for sending two members to investigate tine erito tlveness of the AFL boycott in Cali fornia, where comany officials claim ed a mihion feet of it Umber was tied up. Kenneth Mcintosh, West Oregon official, said the firm would agree to sending one of Its employes and another union member, but would not finance the trip for a salaried union official. He rejected the sug gestion that Don Xelmlck, interna Monal union representative, be one of the Investigators. The union, eneeutlve board, af ter a meeting yesterday, charged the company with ''insincerity.' With eight days remaining before expiration of present working agree ments, the Columbia, Basin Loggers assoetcuon and the district coun cU of the CIO lumber and sawmill union remained at odds over rs newal terms. Al F. Jtartnng, council president, said the union objected to an op erator's proposal to permit hiring of men from the state employment of fice as well as from hiring halls and at the oamps. "It means that the operators would run in a bunch of dirt far mers on us and leave our men out in th cold." Hartung said. Union officials also objected to a request for three periods during the contract year during which either party may request wage cftarkgea. Operators notified the union last week they would insist on consid eration of the changes, requested in a letter dated January 36 Union officials contended the letter did not reach them 30 days before the old contracts expire March 1, at provided m that lnetrument Hartung said attorneys had ad vised that the mall "is not our a pent" Are RUPTURED? IVEW Adimttable-Ccntcr Akron "Mocfcso Form" TRUSS PAD Hotdc Rsfptwrv Sccvroiy with Minimum Pi An expert truss fitter from th Akron Truss Company's factory and clinic will be in our store all day Feb. 22nd ONE DAY ONLY! TUESDAY, FEB. 22 COME IN FOR FREE CONSULTATION EXAMINA TION AND ADVICE TO MEN, WOMEN AND CHILDREN. You can work or play in safety with the new Akron truss. A truly scientific rupture control appliance. If your truss hurts it is improperly fitted L,ei us snow you now comportable an I an Akron truss can fit. TRUSSES, SURGICAL BELTS, ELASTIC STOCKINGS AND ABDOMINAL SUPPORTS fJ I uapiiai Drug tore AUTHORIZED EXCLUSIVE AKRON TRUSS FITTERS Cot. State and Liberty pn. 311a Salem, Willamette : And Linfield To Open Tourney Willamette university ana ssn- lleld college, which hav not met for several seasons, will hav th honor of opening tne lntercoiie- glal basketball tournament which will set under way Wednssdsy night on Willamette's floor. This decided this foienoon wnen pairings for th nine teams in volved were made tinder the super vision of Coach R. 8. Keene at Willamette and Ooaeh Al Cos uf Oregon Normal, Monmouth With nine teams involved, it Be came necessary to start the tourna ment Wednesday night Instead of Thursday, as originally planned. As a result the winner of Wed nesday night's game will play on more contest than the others should this team be fortunate to go through to the finals, slated for Satur day evening. The nine dubs Involved are Eas tern Oregon normal. Southern Ore gon norms), Oregon normsl. Mount Angel, Willamette, Linfield. Port land university, Albany college and Pacific university. Through an unususl quirk In th drawings the three normal schools am In the upper bracket, thus af fording an opportunity to decld the championship of this group in SaailMRl W BBiaDIUMMIlg Ul. IUCIIUI.7 Ol tne oest maepenaeni ciud in wm state among the colleges. The program calls for one game Wednesday night at 7:30. one on Thursday afternoon at 4. three Thursday night, two Friday night and two Saturday night. Th win ners In the semi-finals will plsy for the title Saturday night, while the losers will meet for third place. The drawings: Wednesday, 1:30 p.m. Wu.em- ette vs. Linfield. Thursday, 4:00 p.m. Eastern Ore gon normal vs. Southern Oregon normal. Thursdsy, 7:30 p.m. Oregon Nor mal vs. Mount Angel; S:30 p.m.. winner of Wlllamette-Linfleld vs. Portland U: 30 pm, Albany vs. Pacific The tournament Is being operated on a straight ellmlnstlon basis with the winner having the priylleg or taking part in the national inter collegiate finals at Kansas City, MO. Macleay Home Econ Has Monthly Meeting Mscleay Mrs. J. L. Albert and Mrs. Lloyd Keen entertained mem bers of the Macleay Home Econo mics club at the gTange hall for the monthly meeting. Mrs. H. E. Martin reported on home Interest confer ence which she attended at Cor vallls lsst week, and the group voted to hav a physical culture class. Present at the meeting were Mrs. Albert Mader. Mrs. M. M. Magee. Mrs. W. H. Humphreys, Mrs. J. L. Amort, Mrs. Lloyd Keen. Mrs. 8her msn Berry. Mrs. Cecils Perry. Mrs. Edward Tooker. Mrs. Leonard Lee, Mrs. Stanley Neeland, Mrs. W. Welch, Mrs. H. E. Martin. Miss Let tie Bsrker. Mrs. Edith Wilson, Mrs. J. P. C. Tekenburg, Mrs. Ver non McAllister and Mrs. Marvin Well. Absence of orders from th Unit ed stateshas caused a depression among lac makers of Calais, Prance. Raw Throat? Here's Quick Action! KH nw eoM irertm tht attack roar throat Eonite hi 0.3 ttrtwa mora aetrf. by tand 1 lesurMfB 2mriifji U half irluss wslsr eoiri flermt before Ihrrj iprmil UP Into t num or DOWN Into bronchi ul tubal. Yon B INt rattat after ifaa Am gargte wlih Zoolte. You . fe A Oregon
