Capital A Journal
An Independent Newspaper Established 1888
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4 Salem, Oregon, Wednesday, July 13, 1949
Importance of Power Ruling Affecting The Dalles
Competitive power conditions in The Dalles have re
sulted in a significant ruling by George H. Flagg, public
utilities commissioner of Oregon.
The competitive situation in that community on the
Columbia river was reason enough for the private power
company to lower rates to meet an invading PUD. So
the ruling went. The resulting cut in rates had to be borne
by the company's stockholders and not by consumers else
where. Since that cut will result in an estimated $62,000
annual loss to the company, the seriousness of the power
competition is obvious.
How did this clear-cut case of private versus public
power come about?
The Pacific Power & Light company has been serving
The Dalles since 1910. After the Bonneville Power Ad
ministration started in 1937, agitation developed in The
Dalles for a people's utility district.
The Oregon hydro-electric commission gave public power
sponsors in The Dalles area an estimate of costs for a
system. The figure was $455,000, with this dependent
on Bonneville power facilities being used.
PUD sponsors petitioned for an election, which came in
November, 1938. Shortly before the election, J. D. Ross,
first Bonneville administrator, announced plans for a
transmission system to run from the new dam to The
Dalles. But the people of The Dalles turned the PUD down,
with the vote showing 1597 for a PUD and 1902 against it.
Ross then announced the cancelling out of the trans
mission line which would have cost $500,000. The people
voted against the PUD, so why have a transmission line?
In the middle of 1939, PUD sponsors petitioned for an
other election. The vote was set for August of that year.
In answer to an inquiry from PUD sponsors, the Bonneville
administration agreed to build a transmission line to The
Dalles "if" the city applied for power.
Agitation for a PUD tied in, at that time, with a community-wide
development program. The Dalles had ideas
of creating a great industrial center there. Talk of a
deep-water port and new industries had the city pepped
up. Public power advocates tied this in with the proposed
PUD.
At the election, the voters reversed their stand of the
year before and balloted 1735 for a PUD and 1190 against.
A series of developments had apparently encouraged the
voters to change their minds: Threat of "loss" again of
a transmission line from Bonneville, waterfront develop
ment, and hope for new industries.
The people's utility district was formed. Then a $475,
000 PUD revenue bond issue was submitted to the people.
Shortly before the bond issue vote, however, the PUD board
of directors signed a contract for Bonneville power. The
revenue bonds were voted in November, 1940, by a vote
of 2288 to 1888.
It was assumed that Bonneville was going to acquire the
existing private power transmission lines. In fact, Bonne
ville tried to buy the entire system of Pacific Power &
Light, not only the facilities at The Dalles. But the war
came along and nothing developed on the negotiations
started by Bonneville.
After the war, the voters of The Dalles gave the PUD
a franchise to operate in the city. The vote was close,
1168 for a franchise and 1030 against granting it. That
was in May, 1946.
There wasn't enough money to buy the existing private
power company's facilities, so a start was made on a
duplicate system in the city. Service to customers of the
PUD began the spring of this year. Rates asked were
about 20 percent less than the Pacific Power and Light's
rates. About 800 of the 2800 customers of the private
company became PUD customers.
So much for the background in the case. It should be
noted, however, that the private power company last year
built a new substation at The Dalles to handle customers.
What will the future hold?
It would be a high-handed commissioner who would
decide which utility would survive or that one should not
compete at the same rate as the other.
The American system of competition will have a full
scale trial, as a result. However, the burden of economic
operation in this specific instance rests with the company
itself. It has to meet what amounts actually to unbal
anced competition, unbalanced by the tax advantages per
mitted a PUD. The 20 percent rate cut will permit equal
ized rates for public and private power.
That is the background and significance of the Flagg
ruling.
Black Tuesday for Aviation
Three airplane crashes which took a toll of . 82 dead
and missing Tuesday mark the blackest period in aviation
history since Memorial day week-end two years ago when
177 persons were killed.
Near Bombay, India, the worst disaster of the three oc
eured when 45 persons, including 14 Americans, 13 of them
newspaper or radio correspondents, three of them from
Oregon, were killed In the crash and burning of a Royal
Dutch Airlines Constellation, while circling in a blinding,
moonsoon rain in an attempt to land at Santa Cruz airfield.
All of the newspaper correspondents were well known
throughout the nation and their bylines were familiar to
newspaper readers and radio listeners.
Near Chatsworth, Calif., 33 persons were killed, one was
missing and 14 injured when a non-scheduled C-46 airliner
crashed into a mountain shortly after the pilot radioed
that two of the passengers were fighting. Mystery veils
the cause of the crash and explosion in the Santa Susans
mountains, whether or not it was due to the scuffling of
passengers. An unidentified woman passenger who died
after the crash is quoted by the police as saying that one
of the contestants knocked the co-pilot into the controls
and jammed them causing the smash.
In Germany, three American airmen were killed when
their Berlin airlift Skymaster crashed in the Soviet tone
in the performance of duty.
The newspapermen, who included two Pulitzer prize
winners, were guests of the Dutch government on a tour
of Indonesia to observe post-war conditions in the East
Indies. They also were killed in the cause of duty st:ur
ing information to enlighten the world on the progress of
democracy in the Far East, and their tragic deaths are a
loss to the world as well as to Oregon.
BY BECK
Things to Worry About
-pS. .5(-r ' "-.hVS N. NEVER N
TpSvfev; "'".ySiOKMY w x MIND ABOUT
if-.V'l'-1'' I POOfiLITTLE ME... AND
-J mmAH trout- Mom poor
. J WMU:mL?W&$ burned to M little
Wm: &'!4AA CRISP W COTTAGE...
iSMWSW BESLm 1 SUPPOSE!
W$wmS& CATCH OF SHOULOVE
I Mffl5-ra-.l: (the summer . M saved the i
1 WvizilTv tSTs?S. fish A
WASHINGTON MERRY-GO-ROUND
British Crisis May Explain
Shift in Soviet Policy
By DREW PEARSON
(Ed Note This is the second of a series of columns in which
Drew Pearson analyzes the highly important, but little un
derstood, economic crisis in Great Britain).
BY GUILD
Wizard of Odds
Washington Here are two international developments which
may or may not be related:
1. In contrast to other years, there is not a sign ol military
activity on the Russian horizon. American intelligence, steadily
improving behind the iron curtain, reports that never at any time
since V-J day has there been
less sign of military prepara- plan will be only a chapter a
tion. As far as the eye can tell, pleasant chapter, but a passing
all is serene,
2. Last spring,
Europe was
booming. Busi
ness seemed
better than ev
er. The Marshall
plan was hailed
as a great sue
cess. At that
time, Russia for
the first time
adopted a con
ciliatory policy.
Drew Pearson
Count Sforza was right. The
British crisis has proved that
the Marshall plan is going to be
a pleasant, passing chapter
pleasant for Europe, but not for
the American taxpayer.
Marshall plan administrators
have tried to get goods exchang
ed between European countries;
and in a minor way they have
succeeded. But they have not
been tough. They have broken
HpJ?&6 ODDS ARE 9 ID I EMPLOYERS DONT
W'Xt FIRE BECAUSE OF POOR WORK-BUT
BECAUSE OF UNPLEASANT
y
ON ANY ATTEMPT TO
SWIM THE ENGLISH CHANNEL.
ODDS ARE 73 TO 27 A6AINST
FASTEST TIME, II HOURS 5 MINUTES.
6r. W. M.T. TM Q- J
THE AVERAGE
RACE TRACK TAKES 15.
BUT I UADF Vl WIU
JESSE JACOBS, L0$AH6U$)
SIPS FOR SUPPER
Could Be
By DON UPJOHN
The plane crash in the orient which snuffed out the lives of 13
newsmen, radio commentators and by-line writers may have
been just another plane crash, or behind it may have been some
studied design Wtisr.
in sabotage.
There are plen
ty of folk out
side this coun
try, and inside
it too for that
matter, who do
not like the way
news writers
and commenta
:ors may bandy
words around in
what we know
more of them will go on similar
missions and not return.
If it gets around to the point
that rent is de-controlled in these
parts throguh the move just in
itiated by the Salem city coun
cil it would seem that it would
be a ' far from smart landlord
who would go ahead and run
hog wild with his new found
freedom. If, as some fears have
been expressed, these decontrols
. - nvpr ihf nniinirv will result in
as free speecn ana s iree press - -. -
and plenty of them who don't f 50 per cent increase in rentals
like what these same newsmen will be the landlord who suf
and commentators have said e in the long run, not the ten
about them and their methods ants. A general up in renta s
of government. It is getting over the country from decontrols
easier and easier in these trou- would mean but one thing, that
bled times for men to "live dan- another congress unquestionably
gerously," and a little more dif- would slap " sme newt c0""
ficult all the time to keep alive trols that would be more string
at all. We fancy many a mem- than ever and he landlord
ber of that ill-fated party had take "in the neck. Whether
a pretty certain premonition he such friendly words of advice
might not come back from it might be accepted around here
but was not deterred. They "mams to be seen if a decon
were of the type who didn't tool goes into effect But it is
hesitate to take chances and all fret .much UP J lan ?r
of them had taken plenty of to decide for himself whether
chances before with plenty of he wants to maintain a fair de
narrow escapes. It is one of the cent return on his properties, or
high prices paid so that Ameri- sooner or later find a rent con
can readers or listeners in the trol noose around his neck that
quiet of their homes may con- will make him choke,
tinue to know what is going on Eggs up another cent" is corn
in the world without prejudice mg t0 the point where it is n0
or bias and based on recounted ionger just a headline in a news
facts gathered by men skilled paper it is pretty near a slo
and trained to do the job. Many gan.
POOR MAN'S PHILOSOPHER
Pop's Making Comeback,
Just Like Joe DiMaggio
By HAL BOYLE
New York VPI The American husband has become the eighth
wonder of the modern world.
The other seven are (1) Sophie Tucker, (2) the Berlin air
lift, (3) The four-dollar British
pound, (4) The Empire State mess, but when have you ever
building, (5) Texas and-or uan- tasted a more wonaertui saiaar
U.S. diplomats at the United Na- down no real barriers.
tions almost keeled over when One reason is that we put the
the Russians first proposed end- cart before the horse. We put the
ing the Berlin blockade. At long Marshall plan before the Atlan
last it looked as if Moscow rea- tic pact.
lized the Marshall plan was For instance, it is impossible
working and it would be wise to persuade France that she
for the Kremlin to be concili- does not need her own exclusive
atory. steel industry, and that Belgium
Then two things happened: could better manufacture steel
During the few brief weeks for her, as long as there is no
between the preliminary talks political alliance in western Eu
in April and May and the call- rope guaranteeing steel to
ing of the Paris conference in France in case of war.
June appeared the first cracks Now that Belgium and France
of economic depression. British are aligned under the North At
business began to slump. Ameri- lantic pact or, better still, in
can unemployment rose. some future United States of
Immediately Russian policy Europe then the need of each
shifted. At Paris, Vishinsky was little country to have its own in
polite but obstinate. The Paris dustrial steel industry is not so
conference was a failure. In Ber- vital.
lin, the blockade was only part- The same might be true of
ly lifted. ' Italy's Fiat automobiles. If Eu-
Thus it looked as if the Rus- ropean trade barriers and poli
sians figured the big break they jcal boundaries were broken
had been looking for depres- down, one or two auto factories
sion had arrived. Also they could supply all Europe's needs,
probably figured that the more Because of boundaries, the Fiat
sabre-rattling in Moscow, the Plant in ltalV nas only a skimpy,
more money spent on armament impoverished market; likewise
in Washington, with more re- the Renault auto plant in
sultant industrial activitiy and France, the Austin in England,
business prospe r i t y . Likewise and so on.
the less military activity behind T- , markets, hemmed in by
the iron curtain, the more nationalist barriers, in the eyes
chance of economic doldrums o Det r o 1 1 manufacturer,
outside the iron curtain. arf" worth sneezing at.
But whatever the Russians Yet each country is determin
figured, this has been the result. ?d t0 keeD UP lts motor produc
And none of us has to do any tlon partly because automobile
figuring to know also that what Plants can be turned into tank
Moscow has wanted most is and airplane factories. With the
world-wide depression after North Atlantic pact, this is less
which she could go around necessary. With a United States
picking up the remaining pieces of Europe, it would not be ne
of the capitalist system. cessary at all.
l The Marshall nlan rr,r l
An earlier column dealt with failed to do more than nibble at
MacKENZIE'S COLUMN
Britain Saw Handwriting
Of Present Money Trouble
By JAMES D. WHITE
(Substituting for DeWltt MacKenzle, AP Foreign New Analyst)
One of the big reasons for Britain's money trouble goes far
deeper than dollars.
This is the fact that Britain's place in the scheme of world
business can never be what it -
used to be. Under the right con- Transforming an empire oi
ditions it might be as great, but subservient colonies into a com-
never the same. monwealth of equal partners is
In the old days the sun never one of the major political feats
set on the British empire. Brit- of history. It isn't finished yet,
ain's colonist sons made deals but is well on. its way, and the
that gave the mother country British are largely responsible,
the world's highest living stan- Britain had to tackle the
dard at the time. This is no delicate part of this just as she
longer possible now that the em- emrged exhausted from World
pire is changing into a union of War n and faced a postwar
equal partner-nations. world that has turned to other
One of Britain's profitable op- supplies. Some of her own de.
erations under the old system pendencie to whom she now
was to buy raw materials in the owed m for the were
,. cw.. .... buymg elsewhere.
j.ijcsc luw iitaiciiaia wnc unto,
to England and made into fin
ished consumer goods. These
pnnQnmpr pnnHc wprp chinrwH .. ....
, : " , . j ,T, these areas, and has partly sue
r,, "V" e """"" so'Q lo ceeded. But the basic fact
me nauves.
This worked until the "na
tives" began making their own
goods and getting fresh, new
Within the framework of the
new commonwealth, she has
tried to rebuild her trade with
that they are no longer economic
colonies in the old sense.
In other words, the old Brit
ain was as rich as she was, part
ideas about running their own y because of her colonies; "Th
show generally.
As a people, the British never
got so nearsighted while clip
ping coupons from colonial in-
colonial economic system
through which they added to
her wealth is on its way out.
Britain now competes in
the causes of the British mone
tary collapse which also ex
tends in varying degree to oth
er west European countries.
Briefly those causes are fail
ure to produce as much as Eu-
this problem, it actually retard
ed badly needed reforms.
Italy, for instance, will never
be anywhere near self-supporting
until the great landed estates
of south Italy are broken up
vestments that they couldn't worid markets on a different
read the handwriting on the basis, and her resources and
wall. techniques have not yet proved
They led all colonial powers up to the job.
in thinking up a civilized way to The basic British good sense
avoid the explosion that could which realized this state
have taken place if the colonial things could not last forever
world had got a flat "no" to its something the world should
demands for freedom. never forget.
rope eats, which is induced, in and reclamation projects creat-
turn, by lack of labor efficien- ed to protect the land from
cy, outmoded machinery and the drought.
loss of Asiatic colonies. But when the DeGasperi gov
There is also another import- ernment approached this, Mar
ant factor failure of the Mar- shall Plan Administrator James
shall plan to cope with Europe's Zellerbach raised his hands in
basic problem of economic bar- hoIy horror. The U.S.
he said, wouldn't approve.
Breakini? 1 in Ttalv'c Vit oKrn4B
rope with the Friendship train, was socialism. The result might
far.eiOhtaH Italian Fnraian Mm- .
riers.
When this writer was in Eu-
far-sighted Italian Foreign Min- be he warnedi that ItaIy.s Mr.
u.i snau pian money wouid cut
Who says it's
expensive to ride
the Hiawathas?
fornia, (6) So- f
viet Russia's I
fore i g n policy
and (7) Joseph
Paul DiMaggio,
the Yankee clip
per. Like "DiMag"
the U.S. hus
band is enjoy
ing one of the
greatest come
backs in history.
a (The garlic flavor usually dies
out ox your lunsus in mice
days.)
Papa isn't satisfied with just
dishing out the weekly house
hold budget money. He's be
come a bargain hunter himself
now. He prowls the shops on his
days off like a beagle hound
looking for the cheaper pork
chop, the sale-priced sport shirt.
"These men shoppers are
worse than the women ever
were," growled our family but
cher the other day. "And the
ed
off.
Time was when he was merely way they watch the scales
a crass beast of labor responsible you'd think they never saw an.
only for bringing home the ba- honest man in their life."
con. The rest of the time he was ...
just an over-stuffed lump of pro- Somc time back , wrote a
toplasm that sank into an over- piece about how papa was tak.
stuffed piece of furniture and jng more interest in household
gave off annoyed grunts when aHajrs Back came a number of
disturbed. hooting letters from unbeliev-
But all that s changed. Papa s ing ,adies saving: "What hus-
a new man. , band? not mine!"
Mama has to call him daddy Well girlS) it.s true papa's
again now and she has a hard going to give you more and
time keeping up with him. She more competition around the
can t afford to let herself get place He.s discovered that keep
frowzy and fat Papa s taken the ing house js IunaS iong as you
inner tubes off his midriff, and don.t have to do it aU tne time.
if she doesn t do likewise, why, jnd Ms going to takc more of
he puts her on a 9-day diet. He a nand n
knows what grub has the most , know a telegraph editor out
vitamins and grows the least )n joplirii Uo,t who l0id his wiIe
blubber. He dole out her calo- she ougnt to make her own
ries like a miser. .inth
tt y fsalvat,ons a Mr. Zellerbach's family are
United States of Europe. We can efficient manufacturers of paper
never be economically self-sup- But his ignorance about Euro
porting as long as we are cut up pean reconstruction only sub
by nationalistic boundaries, stantiates Count Sforza's predic
Moreover, we will never abolish tion that the Marshall plan
war until we banish nationalism. wouid be onI a chapter jE
"And we won't banish nation- rnne's tr,,ooi . .
alism by ourselves We can on- nomy pleasant chapter, but
ly do it if you put the pressure a nassine one.
on. You can do it through the
Marshall plan. You are the only
people who can make us set up
a United States of Europe.
"But you will have to be
tough. Otherwise the Marshall
a passing one.
(Ed. Note Another Drew
Pearson column on whether
we face a creeping, world
wide depression will follow
soon.)
(Copyright 194S)
Fire Ahead! No, Behind!
Santa Ana, Calif. AJ.PJ A fire engine racing to a blaze
here was delayed slightly when the crew hart to stop and
put out a fire in their coats and hats stored on the rear
of the truck.
This 1949 husband is a bird of
"If it's so easy, why don't you
fresh plumage. He's doffed the do jtri she jgj
aun uniforms ne s worn lor me Darned if he didn.t. Now he
last SO years. makes clothes for the whole fa
No longer does he back away miiy
from pastel shirts or shy from ' , , ,
summer neckties that look like
a cross-section of t h e northern
lights.
In Alabama the husband's are
getting so good at Camellia
Pop's discovered color-and he ?,rowing ney e.X Prizes at
Til, . . . ... iiower snows xnai tneir wives
imtra 4k. tic la OlSU IIIC AHSv UlItT
Be safe! Store your furs riow. Guard
them against moth and warm wea
ther damage. Store -them in the air
:ght vaults at
under the family sunlamp and
the last to leave.
used to win.
"Well, at least it keeps them
out of pool rooms," said one
frustrated lady.
Yes, sir, the old man seems to The low-down in business is
have made up his mind that making husbands even more
anything his old lady can do he thrifty. Recently a friend of
can do better. mine went into a store to buy
He's got mama taking lessons some hand-knit wool socks. The
in interior decoration, and he price $7.50 a pair shocked
thumbs through the ladies' ma- him.
gazines looking for new recipes "I can make them cheaper
he can amaze neighbors with, than that," he said.
He may 1 1 a v tht kitchen a He's taken up knitting.
......,,.... !':'; i'!(.oV,.rr.
1 1
Oil 135 North Liberty
Don't get the mistaken idea that it's costly to travel
on a "glamor train" like the Olympian HIAWATHA
leader of The Milwaukee Road's Hiawatha fleet
Nothing could be further from the truth!
You'll verify that when you check the cost of
coach travel on The Milwaukee Road against other
carriers on land or in the air.
Among the extra luxuries coach passengers get
without extra cost are the use of the handsome diner
and the attractive Tip Top Grill.
Touralux sleepers, and private-room sleeping cars
with Skytop Lounge, are
available at graduated fares.
East to Chicago
THRIFT GOES WITH
SWIFT ON THE
HIAWATHA LINE
For information, liciett mi
rtservations, ask
Portland Offlct
911 S. W. Yamhill St., Phono Atwatoi 111; I
Coo. V. Vallor. DUtrlct Pouoniior Aj.nl I
F. A. Swauos. Gonoral Agonl '
1