Image provided by: University of Oregon Libraries; Eugene, OR
About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Nov. 29, 1956)
Salem, Oregon, Thursday, November 29, 1956 THE CAPITAL JOURNAL Section 2 Page 1 Arbitration of Bus Strike in , Seattle Urged SEATTLE tfl Arbitration of Issues in Seattle's bus strike, now in its sixth day, was urged Thurs day as the tieup continued to keep many shoppers away from downtown stores, causing sales to slump, Charles J. Mentrin, labor lead er and former member of , the Transit Commission, proposed in an "open letter" to Mayor Gordon S. Clinton an immediate end to the strike and submission of the dispute to a fact-finding arbitra tion panel. The panel, under Mentrin's pro posal, would consider fares and all other aspects of the dispute and its report and recommenda tions, to be made within 50 days, would be binding on both Local 587, Street Car Men's Union, and the Transit Commission. Any wage increases would be retro active to Nov. 1. t The city petitioned in Superior Court Monday for a temporary injunction against the union and a hearing is scheduled for Friday forenoon, August Antonino, union business representative, said Thursday there is little probability, however, that the strike would end this week even if an injunction is granted. "We will fight this right to the State Supreme Court," Antonino said. "This talk of an early end to the strike is premature. "We will obey any injunction eventually issued, but we will do everything in court to oppose one being issued." Crowds have been noticeably smaller in the business district because of the lack of bus trans portation. One newspaper said Wednesday that downtown store operators "admitted business was down from 18 to 50 per cent." Traffic engineers report that automobile traffic downtown has increased more than 20 per cent. The transit Commission has of fered a 6-cent hourly wage in crease in reply to the union's de mand of an 18-cent hourly wage increase above their $2.13 an hour scale for operators. The commis sion said the increase would cost bus riders $900,000 a year. McChord Base To Get F102s TACOMA UPi New supersonic Convaair F102A j e t interceptor planes will arrive at McChord Air Force Base starting next month. Col. Henry L. Crouch Jr., Mc Chord commander, said the 317th Fighter-Interceptor Squadron will be first in the Northwest to get the delta-wing all-weather air craft. They gradually will replace the F86Ds now in use. The 317th is one of four jet inter ceptor squadrons in the 25th Air Defense Division. Others are the 318th, also based at McChord, the 321st at Paine Air Force Base and the 460th, Portland Air Force Base. McChord officers said there was no word on when the other squad rons would get F102As. Co-eds Hit Back At Panty Raiders BOISE (UP) The collegiate panty raid craze spread to Boise Junior College this week with the coeds getting in on the act last night. . College officials reported today that between 40 and 50 women students stormed Driscoll hall, a men's dormitory, shortly after dinner last nicht and some of the men reported various articles of underclothing missing. The co-ed raid apparently was in retaliation for a raid by men students on the girls' dorm Monday night. Officials also reported that a brief but spirited water fight fol lowed last night's co-ed raid and some of the girls got themselves doused in showers. The incident was termed as "just a lot of kid fun." , Cougar Pumping Job Contracted PORTLAND (UP) A $70,815 contract for construction of a proj ect engineer office building and pumping plant at Cougar reser voir on the south fork of the Mc Kenzie river has been awarded to Deller Construction Company of Eugene. The contract is among the first to be awarded at the $37,400,000 unit in the Corps of Engineers' Willamette River basin project which will have two generating units with a total installed gen erating capacity of 25,000 kilowatts. LaMarca Claims Mind a Blank When He Confessed Kidnaping xiivrnt.A Y. m Ansclo LaMarca said Wednesday his mind was a blank when he confessed the Julv kidnap-slaying of baby Peter Weinberger. He accused FBI agents, through force, of put ting words in his mouth. Thus, LaMarca told an all-male jury, he confessed after his ar rest last August 23 that he and an unnamed accomplice kidnaped the 32-day-old baby July 4, and aband oned it the next day to its death. Speaking of the August 23 Inter rogation by the FBI, the defense attorney, David M a r k o w 1 1 z, asked: "At that time, did you ac tually tacjw Wtfe the) tuvfl Where SAN DIEGO U.S. Forestry down a 50 foot bluff to where 11 died Sunday night in a Cleve land National Forest fire north of here. Cross in foreground marks where one of the bodies was found. Fire has burned across 44,000 acres. (AP Wirephoto) BUSINESS MIRROR Canadian Dollar Now Second Highest Ever By SAM DAWSON NEW YORK WV-The Canadian dollar is worth about four cents more in today's market than the American dollar. This doesn't mean that the American dollar is losing any of its prestige in other lands it is still the most sought after cur rency in the world today. It does mean that Canada's vast postwar expansion is catching its second breath that American dol lars are flowing northward. The flow has been particularly large in recent days because Ca nadians have been borrowing in the U.S. capital market interest rates are even higher north of the border. As these borrowed American dollars are exchanged for Canadi an to go to work there, the ex change rates reflect this large sup ply and the Canadian dollar Mon- da" rose to $1.0417, just a sbadc under the high of $1.0434 in August 1952 when a previous great spurt in investment in Canada was un der wny. Some American businessmen watch this rise nervously. They wonder if the more expensive Ca nadian dollar may put any pres sure for still higher prices on the things they buy from Canada- such as newsprint, woodpulp, met als, oil and chemicals. Some Canadians also watch this rush of American dollars north ward with concern. They know that investment funds are needed to develop Canada's vast natural resources. But they fret because the profits from this development may flow southward in future years. For a time last summer this was a prime political issue in ' U.S. corporations should let Cana dians buy into their subsidiaries there. Americans aren't the only ones investing in Canada these days. There has been a flight of capital from Europe. Investors there feci the money will be safer in Canada than in troubled Europe. : In the first spurt of investment in Canada, in the first part of this century, it was British capital that financed Canadian expansion, But since the mid 1920s Ameri can capital has been taking over. In the early 1930s when the Brit ish Commonwealth companies set up a preference system, U.S. cor-i porations began setting up Canadi an subsidiaries so they could ex port to preference areas from Canada rather than from the United States. Another great spurt started aft er World War II when Canada was found to have vast resources needed to supplement those in this country uranium, nickel, copper, oil. .There has been some investment in Canadian stocks and bonds been anybody with you?" "No, 1 did not," LaMarca re plied. "They suggested there was someone with me. . ." LaMarca, a 31-year-old mechan ic and driver, said he was willing to go along with the suggestions of the G-men because "I didn't know for sure one way or the other." LaMarca did not actually re pudiate his confessions, but the defense line of questioning appar ently was intended to cast doubt ; on them and pave the way lor i.a j Marca to tell his own story of the kidnaping from the witness stand ilr- . 11 Die in Forest Fire officials from Washington look S' Canadian bonds, for example, have a higher yield than U.S. bonds. But most of the American dollars have gone into leases, plants, mines, wells and facilities. The U.S. Department of Com merce puts U.S. direct invest ments in Canada at the end of 1955 at 64 billion dollars a siz able chunk of the total of 19 bil lion throughout the world. Canada's dollar owes its pres ent high rating largely to this in vestment. This year our northern neighbor is running a commodity trade deficit, imports topping ex ports by one billion dollars more .than double what it was in 1955, By itself this factor would weak en the Canadian dollar just as the trade gap weakens the British pound. But thei How or foreign capital to Canada has more than made up the difference and put the Canadian dollar at a premium. Canada's net foreign debt as it borrows to expand may hit nine billion dollars this year up five billion in six years. This year alone the capital investment in capital investment in Canada's expansion may reach eight billion dollars. Canadians are furnishing part, of this capital but much is coming from the United States in dol lars worth four cents less than the Canadian one. Boy Writes Governor Of Golden Rule Value Nine-year-old James E. Bedell, Gresham,- wrote Gov. Elmo Smith Wednesday a tip on how to solve legislative problems. His letter said- ' Why don't we go by the Golden Rule for the law. We should have a vote on it. I hope it goes through. If it does I will be happy and I am sure that everybody will be happy too. The governor said he agrees Christmas gilts of a new Prlmltlf Parfaia Cologne ... unmistakably feminine fragrance! 4 oz. bottle shown, $3.00. Alv, 2 oi. 11.75 or r7ie woman who is QQ Other gilts ol Primittl, too. Ask to trt thtm alii OPEN EVENINGS Til 9 j Sweet Home Forest Road Job Awarded PORTLAND (UP) Ah access road system to bring loggers into the Cascade foothills near Sweet Home was under contract today to two Oregon firms. The Interior Department an nounced here that contracts total ing $408,784 were awarded as par of the Quartzville Creek timber access road system in Western Oregon. The Cedar Creek Logging Co. of Sweet Home won the largest con tract at $203,425 for construction of 3.7 miles of road in the Yollow- bottdm area. Timber Access In dustries of Corvallis won a con tract for $202,359 for a 2.2 mile section of road at Boulder Creek, The two roads will tap about 2,700,000,000 board feet of old growth timber, about 10 per cent 2,700,000,000 board feet of old growth timber, about 10 per cent of it privately owned. Tne remain ing 90 per cent is administered by the Bureau of Land Manage ment and by the Forest Service. Turnblad Named San Mateo Editor SAN MATEO, Calif., -Wl J. Hart Clinton, publisher o' The San Mateo Times, announced Wednes day that Harold Turnblad will be come editor of the paper Jan. 1. Turnblad recently retired as chief of bureau for The Associated Press in San Francisco after a 33 year career with the wire service on the West Coast. At The Times he will succeed Joseph P. McSorley, who is re tiring after 28 years as editor. Turnblad joins The Times staff Monday preparatory , to taking over as editor. ICE BOUND HOUND BUCHANAN, Mich. (UP)-Harry Trescher's beagle hound came home weighted down after a dav of chasing rabbits, but not with game. Moisture collecting on tne melal identification tag dangling from the dog's neck had frozen into a half-pound ball of ice. every inch a female PRIM 1J IF fragrance brought to America1 by Max Factor Sophllll-ot l holding l'2 drami ol Primitif Pirf.imt $1.50 1 SD Tribes Handed $25 Million on : Celilo Claims PORTLAND (UP) Final pay ments totaling $24,865,440 to the Nez Perce, Yakima, Warm Springs and Umatilla Indian tribes were made by Army engi neers today for the Indians' giving up their fishery at Celilo Falls which will be inundated by The Dalles dam next March. Col. Jackson Graham, Portland district engineer, said the 'largest check went to the' Yakima tribe. It was for $14,419,640. The Uma tilla check was for $3,998,000, the Warm Springs for $4,847,800 and the Nez Perce $2,600,000. Agreements also have been completed with several individual Celilo Indians not affiliated with treaty tribes included in the settle ment, Col. Graham said. The Umatilla, Warm Srpings and Nez Perce tribes each re ceived initial payments of $200,000 within 60 days after approval of agreements signed with the Corps of Engineers. Initial payment to the Yakima tribe was $600,000. The agreements provided for pay ment of $26,065,440 to the four tribes as part of the $260 million cost of The Dalles dam. Col. Graham emphasized the agreements do not abrogate the treaties of 1855, but merely com pensate the tribes for subordinat ing their fishing rights in The Dalles dam area. Sreen star Clark Gable's first job was as a timekeeper t the age of 15 in an Akron rubber fac tory. jlOlim KROS. $TOItl so smart . . .'so easy to care for! Us icashable, no-iron orlon and wool in winter pastels 8 .98 Boon to the working girl . . . (his lovely career tlress ill cuddly-soft orlon and wool lliat washes easily, need no ironing at .nil. And w lint smart ness nt such a liny price. Flowing surplice with ii sleeves, fiill'skirt. Winter while, lierry red, pink, champagne. 12-20, Ma-2-l.'i, 9-15. , Moderate Price Shop, 2ml ; Lipman's j Salem, Oregon ; flentk-men: Please send me the : Quan. 1 Style Name j Address ; Cash Please Will Heltzel Order Phone Rate Boost Before Demos Take Over? By PAlJt W. HARVEY JR. Associated Press Writer It takes a lot of work and college economics to increase your month ly telephone bill, and sometimes there's some politics tossed in for good measure. Public Utilities Commissioner Charles H. Heltzel will begin a hearing here next Wednesday on the Pacific Telephone & Tele graph Co.'s application to boost its Oregon rates $3,200,000 a year, or about 5 per cent. The company says It needs the money to pr vide capital for ex pansion, and to make up for mounting costs of labor and ma terials. The interesting point Is whether the order will be' issued by Helt zel, or whether it will wait until the Democratic administration takes over on Jan. i. In the past, Democrats have fought rate in creases. Heltzel doesn't know whether he will be able to decide It depends on whether the hearing lasts two or three weeks, as they often do. It also depends on whether it gels complicated. It isn't a hard and fast rule, but Oregon usually permits the utilities- to earn about 6 per cent, based on the original cost of their properties less depreciation. Some states go as high as 8 per cent. Few allow a smaller profit than Oregon does. The phone company, however, wants this yardstick changed. It has sought to have the rate base changed to what it would cost to replace the present plant. This Shop Friday until 9 p.m. Park free with following sweaters: I Color 1 2nd Color I Size ! ' Charge C.O.I). .. add postage beyond free zone theory would permit higher rates. Heltzel has been investigating the company's rate increase ap plication since it waj filed last September. Uc finds the company now is earning 5.7 per cent, based on original cos', less depreciation. If he approved the application, the rate of return would be 6.7 per cent. This will be Heltzel's third such case. In 1952, the company asked for $5,188,000 more, and got $853, 441. A year Inter, it asked for $3, 960,000, and got $1,456,524. One trouble faced by the phone company is inflation. For in stance, in the last phone case, he granted a 6.3 per cent rate of re turn, but higher costs and in creased investment quickly cut it to 5.0 per cent. The company ha's tax troubles, too. Every timo it gets a 'rate in crease, half of It automatically goes to the federal government. And it has to pay stale and local tax - out of the other half of the increase. Heltzel doesn't know what he'll do after the new administration comes in, but it's almost certain he won't bo around. The Democrats have trained their guns on him ever sinco, in 1952, he let the power companies add a 20 per cent surcharge for several months to repay them for added costs of steam generation. That was th" year of the low streams, when ' hydroelectric plants couldn't fill the demand for power. The Oregon Supreme Court up held Heltzel, but the Democrats from 9:30 a.m. validation Price ! t I . ' : ! r continued their 'running attack on him. 3 A public utilities commissioner doesn's make man friends. The utilities don't think he lets them have enough profit, while many consumers get angry because he lets the utilities increase their rates at all. 'Bain9 Picked As Easy Name PORTLAND W Victor Hasson firmly believes that when the name's the same, you just can't miss. . Hasson has petitioned in Mult nomah Circuit Court to change his name to Victor Bain, His reason ing: . ' Hasson is unusunl and difficult to remember or spell; he's in poli tics and wonts "a simple, easily spelled name that Is well known and respected" In the community. In Multnomah County, James R. Bain is a circuit judge; Jack Bain is a county commissioner, and John Bain is constable-elect. They are not related. TREATMENT FOR CUCKOOS PHILADELPHIA UV-The oper ators of a jewelry store here de cided their window sign offering free estimates on watch repairs wasn't quite enough come-on. They added this bit: "Cuckoo clocks psychoana lyzed. Bids Near for $111 Million Military Jobs PORTLAND (UP) North Pa clfic Division engineers announced at their headquarters here today that they would call for bids for $111 million in military construc tion in the Pacific Northwest and Alaska between now and the end of the fiscal year m 1957. Of the .total, $34 million will be spent on the Army to build chap els, warehouses, family living quarters, oil storage facilities, schools and club buildings, shops, roads and other facilities. The Air Force will get $77 mil lion to build family housing, run ways, recreation buildings, steam plants, airmen's dormitories, con trol and warning stations, swim ming pools, officers quarters, den tal clinics, and other, construction items. - None of the projects is In th ' Portland district. Yuletide Message Spread by Phone BAKER un Merchants open their Christmas season here this weekend and about the only way to avoid knowing of it is to take , the phone off the hook. .. . , The Chamber of Commerce, aided by the Jay-Cee-Ettes, plans a telephone campaign in which every number in the phone book will be called and this message delivered: "It's Christmas on Main Street for three crazy days."