Capital Journal
2 SECTIONS
20 Paget
THE WEATHER.
PARTLY CLOUDY tonight and
Thursday. Night and morning fog.
Little change In temperature. Low
tonight, 32-34; high Thursday, 46-48.
69th Year, No. 2
Salem, Oregon, Wednesday, January 2, 1957
taterad ma Mcond dtts
matur at Satan.
Demos Caucus,
House Leaders
All Re-elected
Organizing On for
Congress Start
Thursday
WASHINGTON un House
Democrats today re-elected all of
ficers from the 84th Congress.
They took no action aeainst mem
bers who failed to support party
nominees in me r.ovemoer elec
tion. The Republicans called an after
noon meeting expected to give
new terms to all that party s lead
ers in the chamber.
At a two-hour party caucus pre-
C. C. President
Picks Leaders
" at TA
uioiwisions
Holloway Heads Civic
Unit; Thompson to
Head Industry
Claude A. Miller, president of
the Salem Chamber of Commerce,
announced Wednesday his appoint
ment of chairman and two vice
chairmen of each of the eight di
visions of the chamber organiza
tion.
Each of the chairmen, working
in consultation with the chamber
management, will appoint other
division members who will be an
nounced later. The members of
the eight divisions vary in num
ber. The appointments announced
Wednesday and the business con
nection of each are:
Civic division Harry Holloway,
Pacific Telephone & Telegraph
Company, chairman; Ed Clark, of
Marsh, Marsh & Dashney, at
torneys, and Paul Bale, of Roen
Typewriter Exchange, vice chair
men. Thompson Industrial Chairman
Industrial division Elton H.
Thompson, United States National
Bank, chairman; Russel E. Pratt,
Capital City Transfer, and E. Burr
Miller, of E. Burr Miller Oil Com
pauy, vice chairman.
Metropolitan planning -w G. P.
(Ted) Chambers, Cascade Meats,
chairman; William H. Hammond,
Commonwealth, Inc., and Roy Har
land, attroney, vice chairman.
Commercial division Elmer 0.
Berg, Berg's Markets, chairman
Sharkey Arbuckle, Arbucklc Shoe
store, and Leonard L. Kremen,
manager of Lipman s, vice chair
men. Leth Heads Agriculture
Agriculture and natural resources
Walter Leth. Blue Lake Packers
chairman; Chester Loe, First
National Bank of Portland, and
Ben Newell, Marion County agent,
Vice chairmen.
Conventions, visitors, recreation
Junior Eckley, Blue Lake Pack
ers, chairman; Leslie Davis, Val
ley Motor Company, and P. H
Brydon, Brydon s Nursery, vice
chairmen,
(Continued on Page 5, Column 5)
TOUGH LINE INDICATED
Klirushy Backtracks,
Lauds Stalin Method
MOSCOW (fl Soviet Commu
nist party boss Nikita Khrushchev
has backtracked on his denuncia
tion of Stalin.
Remarks by the party chief at
the Kremlin New Year's Eve par
ty were interpreted as further in
dication of tough measures to
combat moves by the satellites
toward independence from Mos
cow as well as an effort by
Khrushchev to bolster his own
position.
Asian diplomats reported that
Khrushchev, in giving a toast at
the party, said:
"Stalin was a great fighter
against imperialism. He was a
great Marxist. The imperialists
call us Stalinists. Well, when it
comes to fighting imperialists, we
are all Stalinists."
This appeared directed particu
larly at the satellites, since the
Mighty Quake
Hits Aleutians
BERKELEY. Calif, tfl Uni
versity of California's seismo
graph recorded revere earth
shocks Tuesday night centered
near the remote Aleutian islands
of Alaska.
The shocks ran up as high as
7.75 on the Richter magnitude
scale. The 19ns earthquake in San
Francisco had a 25 rating.
Don Tocher, university seismo
logist, said the shocks centered
about 1.500 miles northwest of
Berkeley. He said they were as
severe as any quakes recorded
last year.
liminary to formal convening of
the 85th Congress Thursday, the
Democrats chose Sam Rayburn
of Texas as speaker, John W.
McCormack of Massachusetts as
majority leader, and renamed all
other lesser house officers.
Powell Fight Fizzles
A threatened move to deny
Democratic committee represen
tation to Rep. Powell, New York
Negro, didn't develop. Powell
supported President Eisenhower
in the 1956 campaign.
Ren. Wayne Hays of Ohio had
announced that he would ask the
caucus to read Powell out of the
party. But he offered no resolu
tion to that effect.
Neither was there any mention
in the caucus of Rep. Williams
ID-Miss) who also deserted the
Stcvenson-Kefauver ticket.
The Democrats named their
holdover Ways and Means com
mittee membrs as a special com
mittee to assign committee posts
to new members.
The Democrats' action on elec
tive posts had been taken for
granted all along.
Senate Meetings Tomorrow
Senate party meetings will be
held tomorrow, with no leadership
changes in prospect but with two
vacancies to be filled. Sen. Mike
Mansfield of Montana is slated
to replace Earle C. Clements of
Kentucky as Democratic whip.
Clements was defeated for re-elec
tion. Sen. Carl Hayden (D-Ariz)
is in line to become -president
pro-tcm of the serate, succeeding
Walter George of Georgia, who
did not seek re-election.
Lyndon B. Johnson of Texas and
William F. Knowland ot caliior
nia will continue as Democratic
and Republican Senate leaders,
respectively.
The House caucus choices will
be formally elected when the
House convenes tomorrow at the
call of its clerk Ralph Roberts.
While awaiting committee
signment recommendations, Con
gress will mark time and receive
President Eisenhower's legislative
proposals.
Ike's Message
Due Friday on
Mid-East Plan
WASHINGTON UTi President
Eisenhower wants to appear be
fore a special joint session of Con
gress on Friday to urge that he
be given standby authority to take
prompt action against any Com
munist aggression in the Middle
East, Speaker of the House Ray
burn said Wednesday.
Rayburn told newsmen Eisen
hower's plan is acceptable to
House leaders, but that he could
not speak for the Senate, which
would have to agree to any plan
for a special joint meeting.
Secretary of State Dulles,
meanwhile, was scheduled to talk
o . the subject with House leaders
Wednesday afternoon.
Rayburn spoke shortly after
White House press secretary
James C. Hagerty disclosed a
speed-up schedule to get fast con
gressional action on the maior
1 foreign policy question.
Kremlin has charged repeatedly
that the Hungarian rebellion was
a Fascist plot fomented by "West
ern imperialists.'' Khrushchev
seemed to be promising that any
such future outbreaks would be
met with the same military crack
down which Stalin would have
used and which finally prevailed
in Hungary.
In contrast with the line he .aid
down in his "de-Stalinization"
speech at the Communist Party
Congress last February, Khrush
chev was quoted as telling the
Kremlin partygncrs, "Men of ac
tion mike mistakes and Stalin has
done so much good that one must
overlook his mistakes."
One Asian diplomat reported the
party boss also said, "Stalin made
mistakes, but we should share re
sponsibility for these mistakes be
cause we were associated with
him."
The official line since Khrush
chev's Februar; speech hat been
that Stalin's mistakes in his latter
vears outweighed his achieve
ments, and that the present Krem
lin command could not be blamed
for those mistakes because Sta
lin acted without consulting them.
Khrushchev's latest remarks
lauding his former chief follow
ed the line laid down last week in
a lengthy statement by the Chi
nese Communist Politburo. An ed
itorial on this from the Peiping
People s Daily was widely re
printed in the Soviet press.
Western diplomats generally
boycotted the Kremlin reception,
but several neutral non-Asians
confirmed the gist of what
Khrushchev was reported to he
said.
March of Dimes
. - - ' ' "'"t:. '
: ; '' ..... ) . .';
- ''X:. ' " ;
i i i w r'-VrWufofcaiif
Negro Shot by
Officer on Bus
In New Orleans
NEW ORLEANS (UP)-A police
man shot a Negro on a crowded
bus here today during a fracas in
which the Negro pulled down two
segregated seating signs and
threw them out the window.
Patrolman Frank Lovoi shot
Frank Jones, 24, in the back. He
was rushed to Charity Hospital,
where his condition was reported
serious.
Bus d.iver Lloyd Alexander, 56,
said Jones first threatened him
with a knife, then threw the signs
out of the bus and demanded the
driver's coin changer. The Negro
was quoted as saying "as long as
we're at it, you might as well
give me the money."
Two patrolmen in another bus
got oft quickly and stopped Jones
as he tried to escape Irom the dus.
Lovoi said Jones slashed twice
at Patrolman Lawrence Bayer, but
missed. Lovoi said he knocked
Jones down with a blow on the
head with his revolver.
Lovoi said he shot Jones "in the
confusion of the fighting."
At the hospital, Jones denied
that he had a knife.
But police said they had a four
inch knife at headquarters that
Jones had thrown in the street as
he left the bus crowded with early
morning workers.
Jones also denied that he tried
to rob the bus driver.
CAA Relaxes
.Air Security
WASHINGTON W The Civil
Aeronautics Administration (CAA I
announced Wednesday an easing
of the rules for defense security
control of air traffic.
' Effective immediately, airplanes
leaving the United States no long
er will be subject to in security
rules. Heretofore, such aircraft
have been required to file period
ic reports identifying themselves
and their position, as long as they
were 500 miles or less onsnore.
Whoopee Lands 10
Linn Boys in Jail
ALBANY (Special) Ten Linn
county youths who started to
whoop it up to usher in the New
Year began 1957 by cooling their
heels in jail instead.
Five were arrested as the result
of a drinking spree in a cabin
near Berlin. The other five were
nabbed by Albany police before
their New Year's celebration got
off the ground.
Five Lebanon youths, who "bor
rowed" a cabin near Berlin for
their spree, were jailed by sher
iff's deputies. The raid followed a
call from Lowell Lindley, Lebanon,
who had been notified by neighbors
that a brawl was in progress at
his cabin.
Jailed on charges of possession
of liquor were Alvin Hawes, 15;
Mitchell Pedro. 16: Murlen Rob
erts, 16: Floyd Willard, 16 and
Gordon Becker, 16.
Officers said several of fee eahe
bants were "away a ait," whwi
V 8rlvW. QmUow f B
Campaign to Get Under Way
Distribution ot containers for March of Dimes contributions,
such as are pictured above, is scheduled to get under wny this
week. The annual campaign to provide aid for those stricken by
pnlfo will be launched here Thursday with a klckoft luncheon at
noon at the Senntor hotel. (Capital Journal Photo)
20 Convicts Refuse
lo Jiiat tor oru uav
Warden Plans to
tet Strike Run
Its Course
For the third successive day.
20 hardened, troublesome convicts
at the state penitentiary refused
to eat breakfast Wednesday after
declining all meals Monday and
Tuesday, including the special New
Year's dinner Tuesday noon.
So far, the hunger strike or this
HilbrunerGets
Portland Chief
Of Police Post
PORTLAND (UP) Terry
Schrunk who was sworn in as
Portland s new mayor today, an
nounced that he has appointed
Capt. William Hilbruner new chief
of police to succeed Jim Purccll
Jr.
Schrunk had said during his
election campaign against Fred
Peterson that his first official act
would be to replace Purcell.
Hilbruner is a 46-year old ca
reer officer.
He was appointed a patrolman
in 19-16, was promoted to sergeant
in 1944, reached the rank of lieu
tenant in 1948 and was named a
captain in 1951.
Hilbruner has operated in nearly
every division of the department
during his service. His most re
cent position was commander of
the first night division at central
precincts.
Schrunk directed the new chief
to be a chief "not only in name
but in action" and to "carry on
an aggressive policy of construc
tive law enforcement in this com
munity.
were' spilled around the interior
of the cabin. The youths claimed
they had been drinking whiskey.
Pedro was released to his
mother's custody Tuesday. The
other four remain in the county
jail.
Five Albany teenagers who got
a case of beer for a New Year's
party Monday night, were picked
up by city police a mere two min
utes later before they even got the
case open.
Arrested on a possession of
liquor charge was Dennis Ward
Barrett, 18, Albany. His four com
panions were not formally charged,
but were to report before Municipal
Judge Willard 1. Bodtker next .Mon
day night. All were released to
the custody of their parents.
In one act of vandalism Ingman
Kuvaas, 2020 Hill St., told polio
someone drove up M M awtomobik
and meow a rich hw.u six
.ky me Una wadw at ks bse
ml
small group has had no apparent
effect on the remainder of the 1500
inmates of the penal institution.
AIcatraz-Type Prisoners
Convicts engaged in the demon
stration, Warden Clarence Gladden
said Wednesday, are the type who,
if confined in the federal prison.
would be shipped to Alcatraz
prison in San Francisco Bay,
where the hardest and most vicious
criminals are housed by the U.S.
government.
Gladden said he was not giving
out a list of the non-eaters be
cause "publicity is Ihcir main hope
and purpose."
The troublemakers arc housed in
a separate building, completed sev
eral years ago, containing individ
ual cells. The inmates in segrega
tion get the same food as is of
fered other prisoners and arc al
lowed to listen to radio programs
by use of ear phones and receive
packages, after careful inspection,
from friends on the outside.
Not Allowed to Mix
The only privilege removed is
being allowed to mix with other
convicts in the prison or on the
recreation grounds.
The isolation ward is also lo
cated in this building, where con
victs have individual cells, no
radio, and are on an unseasoned
restricted diet. Convicts sent to iso
lation usually remain there for
about seven days.
Gladden said only those prison
ers who are flagrant violators of
the prison rules, or who attempt
to escape or attack another pris
oner, are sent to the segregation
building.
"The main purpose is to get
these troublesome convicts out of
circulation with other convicts,"
Gladden said. "In many cases
when we allow a convict to return
lo the main prison, he immediately
gets into trouble and goes back to
segregation."
Warden Gladden reiterated that
he would take no steps. to end the
hunger strike in segregation. In
stead, he said, he would allow it
to run its course.
Girl Assaulted
In Teen Kidnap
PORTLAND UP A 13-year-old
girl told police a trio of teen
age boys forced hpr into a car at
knife point last night and that she
was takn to a desolate area and
criminally assaulted.
The girl said she was returning
home from the St. Johns theater
when she was stopped. She said
one youth held a knife against her
and forced her into a car. She was
driven to a desolate area where
one of the youths assaulted her,
police said.
It was the fourth incident of
juvenile violence here since Sat
urday. Weather Details
Maxlmnm Titrf1r. 41; minimum
trlt, -W. loUi 24-hOitf prlpi
tnrti : .TO; frtr nvmtti: Jfli r"mM. .
tc. 1 AUm MuhiKli A. vrl tone
tfiiwntft rat P- it tt'Cttf
Hungary's
Cops Quell
Flash Riot
Trucks Ram 2,000
Angry Shoppers,
Scatter Them
By CHARLES W. RIDLEY
United Press Staff Correspondent
VIENNA (UP) Hungarian police
and militia crushed a flash riot
against Communist strongarm
methods today by driving their
trucks into a shouting, jeering
crowd of 2,000 shoppers in Buda
pest. The demonstration began In
front of a state-run department
store which opened its doors for
the first time since the Hungarian
rebellion started in October. It
was broken up by powerful police
and militia forces within a half
hour.
Police used their clubs, but not
their guns. The initial group of
policemen on the scene was un
able to cope with the anger of
the crowd. But when reinforce
ments arrived, they drove their
trucks straight into the ranks of
the demonstrators and scattered
tnem.
No serious injuries were report
ed.
Insults i and Jeeri
United Press Staff Correspond
ent Jack Meehan reported that he
was standing in the street near
the scene in Budapest when the
Hungarians still smouldering hat
red of the police erupted Into
open insult, shoving and jeering
that culminated in the demonstra
tion.
Government announcements in
the press and over Radio Buda
pest had drawn some 1.500 per
sons to the Magyar Divatscarnnk,
a famous department storo which
had been destroyed during the re
volt and whose goods had been
transferred to the shop which
opened today.
Strong police and militia forces
stood with their tommyguns
shouldered and watched the hap
py, jostling line ol shoppers which
snaked for two blocks along An-
drassy St. and coiled around a
corner.
A group at the head of the shop
pers' line was let into the store at
12:55 p.m.
The long line of shoppers surged
forward with more jostling. Ner
vous police at the head of the
line clutched their weapons in
front of their chests and tried to
shove back the crowd.
Crowd Blocks Street
This action apparently changed
the good natured mood into one of
anger. Within a matter of seconds,
the crowd became a shouting,
jeering mass.
An additional 500 persons sud
denly converged acrossV Andrassy
(Continued on Page 5 Column 6)
'Dick' to Boom
Wayne for '60
National Race
WASHINGTON (UP) Sen.
Richard L. Neuberger (D-Orc.)
yesterday announced formation of
an organization to boom Sen.
Wayne Morse (D-Orc.) for a place
on the Democratic national ticket
in 10IV0.
Neuberger said the group the
National Friends of Wayne Morse
proposes to boost Morse as
"an outstanding leader of Ameri
can liberalism." The move has
received "voluntary and enthusi
astic support" from all over the
country, he said.
Neuberger said the organization
was formed "solely from a pro
found conviction that the country
needs the services at the head of
our government of a man of po
litical courage and tested liberal-
ism. Wayne Morse meets these
qualifications."
He said Morse knew nothing of
the decision to form the organi
zation. Oflicers include Neuberg
er, chairman; John H. Travis of
Hood Itiver, Ore., head of the Ore
gon Friends of Wayne Morse, and
Hugh II. Earle, treasurer of both
the Morse and Neuberger senator
ial campaigns.
Antarctic
Damages
Br DON GUY
MCMURDO SOUND, Antarctica
W A great ice floe, driven by
near-hurricane winds, slammed
the U.S. Navy freighter Arneb
against the coast of Antarctica's
frozen Ross Sea New Year's Day.
An iceberg ripped a five-foot hole
and a series of cracks in the
Arneb's hull.
The powerful Icebreaker North
wind crunched to the side of the
stricken ship. Ice chunks bent one
of the Northwind's propellers.
Wednesday, both ships were
trapped in the grinding ice pack,
struggling to fight free.
Capt. Nels C. Jor.nson of the
Arneb radioed that water was
tricklmq riwough the cracked
matH. hvi pumps had the 'flood-
ant wrtfrf ftrBrw s far
j fttt fOVJt toftt 4 to Jog
FT&T to Increase
Rates $2.2 Million
PERSIAN CVLF DISASTER
20 Killed
Rips Oil Platform
MANAMA. Bahrein UH Oil
men disclosed Wednesday a storm
has wrecked a 1V4 million dollar
offshore drilling rig, left 20 Arab
workers dead or missing and dealt
a crippling blow to a four-year
hunt for oil under the Persian
Gulf.
The disaster struck a 1,200-ton
steel floating tower of the Shell
Oil Co., last Thursday night in
the shallow waters of the Gulf
that separates the rich oil fields
of Iran and Saudi Arabia.
A spokesman for Shell, which
had invested more than 25 million
dollars in the maritime search,
said: "Although the platform is
still standing, it is doubtful wheth
er it can be salvaged. An exami
nation is being made by experts
from abroad."
The rig was being prepared for
removal to a drilling sile in deep
RoadTollat'Normal'
420, But Sets Record
New Year's Deaths
70 Below NSC's
Predictions
Bv UNITED PRESS
The nation set a new record for
hichwav deaths during the New
Year'r holiday today but It fell
far short of the grim predictions
of safety experts.
It appeared the final toll for
the holiday would Be ..nout o,
considered "normal" for a four-
day weekend at this time of year.
This compared wilh the National
Safety Council's predictions of 490.
Ned H. Dearborn, president ot
the council, said motorists and
law enforcement officers "teamed
up to make our preholiday esti
mate way high."
"Our thanks and congratulations
to them for proving us wrong,"
Dearborn said.
New Rcrord Set
Nevertheless, the death loll
topped the old mark for a four
day New Year's holiday. This was
407. set in 1052-53.
A United Press count at 8 a.
i. PST showed 409 persons killed
in traffic from 6 p.m. Friday to
midnight Tuesday. Another 61 per
sons died in fires. 5 in plane
crashes, and 111 m miscellaneous
mishaps for an overall toll of 588.
Hospital Fire
Routs Patients
SAVANNAH. Ga. Ifl Patients
were routed from Charity Hospital
Wednesday hy flames breaking in
the attic about 4:20 a. m.
Thirty-nine persons wero re
moved first to the ground floor
of the building and, finally, as wa
ter used to combat the blaze be
gan to accumulate there, to the
larger Chatham Memorial Hos
pital.
None suffered any injury dur
ing the transfer in the early morn
ing chill.
Two firemen received cuts bat
tling the blaze.
The fire was officially under
control just before 8:30 a. m.
Damage to tho Negro hospital and
its equipment was undetermined,
hut spokesmen said it would be
considerable, especially from wa
ter dripping down rom the upper
to lower stones.
Ice Traps,
Navy Ships
and 14 Inches wide was above
the waterline on the starboard
side. The Arneb's crew worked
in the holds to shift the cargo and
f.hore up the torn sides with
timbers.
The Arneb, based at Davisville
R.I., also sustained damage to
propeller and one engine.
The Northwind one of the
U. S. Coast Guard's most power
fill Icebreakers, able to smash
through ice many feet thick
apparently did not suffer struc
tural damage. Rut the pressure
ot the wind-driven ire was so
great neither ship could maneu
ver
The scene of the battle against
ice and sea was near ( ape Hal
lett at the northwest end of the
Ross Sea, 500 miles north of Hits
U. S. antarctic base,
Authorizes
as Storm
er water. Weather forecasts had
indicated a tow could be started
during the night, but a northeast
erly tempest sprang up. The wind
damaged the two 1,800-ton pon
toons on which the drilling plat
form its main deck a huge 40
x 140 font living and working area
40 feet above the water. was
mounted for towing.
A heavy swell came on. with
20-foot wa' Cs . Under the swell,
the crossbeams connecting the
pontoons snapped like glass rods.
." Despite desperate efforts by
three tugs, the loose pontoons
smashed against the drilling plat
form. Heavy equipment broke off
and crashed into the gulf.
Orders were given to abandon
the platform and 2o0 men jumped,
dived or slid into the raging
waters in complete darkness,
Most of them reached the accom
panying tugs.
California, which had the worst
record in the nation with 73 deaths
during the Christmas holiday,
again led with 38 highway deaths,
Texas came second with 34, fol
lowed by Pennsylvania with 24,
Michigan 23. Illinois 21, Ohio 10
North Carolina 16 and New York
15.
State Of ficers
Capture Three
Jail Escapees
Three men who escaped from
the Harney County jail at Burns
Tuesday morning were captured
six hours later at Gcrvais by two
state police officers.
The three escapees were: Rich
ard A. Perkins, 22, Drew, Ore.,
held at Burns for transportation to
the stale penitentiary on a forgery
sentence; Leonard Joseph Quecncr,
20, Burns, who was doing a six
month sentence on a contributing
charge; and Lester Marion Ellege,
24, Willits, Calif., who was arrested
at Burns Monday night on a burg
lary charge.
The men, who escaped in the
jailer's car, were spotted on High
way ME north or Salem by State
Police Officer Henry Hepler early
Tuesday afternoon in the stolen
vehicle. He followed them into
Gervais where, assisted by State
Patrolman Ray Judson, he put
thorn under arrest.
The men got away from the
Burns jail about 8:30 Tuesday
morning by pouncing on the jailer
when he entered their cell with
their breakfast. They bound him
in a cell, stole his car and drove
west over the. South Santiam high
way.
Officers from Burns were to pick
them up here Wednesday,
Sun 'Dazzles'
Valley But Fog
Due to Return
Patches of blue sky and glorious
sunshine occasionally brightened
tho weather picture for Salem and
the valley, Wednesday.
But the weatherman warned
(here would be night and morning
fog again.
Packed snow and some Ice have
made more hazardous travel con
dions for the mountain passes of
the slate, the highway commission
warned this morning. Chain. are
a necessity on several routes and
it Is the safe thing to do to have
chains along through all mountain
routes.
Five-day outlook calls for tem
peratures to be a litUe below nor
mal. Some rain is in prospect,
occurring mostly Sunday or Mon
day. Low temperature tonight in
Salem is to be near the freezing
mark, but bits of sunshine are
promised at times again Thurs
day. II DEATHS IN WASHINGTON
SKATTLE UP Washington
state ushered in the New Year
v.ith an unhappy total of 13 acci
dental deaths over the holidays.
Seven deaths occurred on the
state's highways, a plane crash
Sunday snuffed out three lives and
three persons were killed in mis
cellaneous accidents.
Boost Million
Under Firm's
Request
By JAMES D. OLSON
Capital Journal Writer
Public Utility Commissioner
Charles H. Heltzel Wednesday
granted a portion of the request of
the Pacific Telephone and Tele
graph company for increased rates
and denied a part.
The company requested in
creased rates totaling $3,320,000
which would have produced a re
turn of 6.7 per cent. Heltzel. in
stead, restricted the company to a
return of approximately 6.32 per
cent amounting to about $2,268,000.
Rate Increases Given
The approval will result in in
creased exchange rates. Approxi
mately 69 per cent of the phone
users will pay 30 cents or less
monthly with the higher increases
falling on business phones and ',
PBX service.
About 7 per cent of the custom
ers, principally those having indi
vidual line business service and
PBX exchanges, will have in
creases of $2 or more a month.
Heltzel aid in his order that the
increases granted are required by
the company to maintain its ex
pansion program, as weir as to
meet increased operating costs.
He pointed out that a return which
docs not meet the capital require
ments of a utility would be conns- -catory
and unlawful.
Effective January IS
The new rates approved by Helt
zel become effective January 15.
The company filed its first re
vised tariffs early lust September.
These were suspended by Heltzel.
Thereafter the company submitted
a lurihor tariti revision seeking an
additional 5352,000 which the com
missioner denied in nil. Wednesday
order. v ( J ,
The telephone rale bearing was
of short duration and did not in
volve introduction of various rate
base theories, Heltzel said, but
was confined to the matter of reas
onable return on the original cost
of tho company's property, less
depreciation in light of increasine
costs and diminishing returns.
In Portland, Frank Drcsslar,
company vice president for Ore
gon, said the firm was "disap
pointed because we asked for only
the absolute minimum rate we re
quire to provide Oregon people
with the kind of telephone service
they want and need. We will study
the effect of the new rates on our
operations to determine what may
oe necessary in the future.
Texas Girl's
Slayer to Get
Light Penalty
DALLAS. Tex. (UP) A teen-
ager with a six-year criminal rec
ord, who admitted killing a 12-year-old
girl, will he charged with
murder today. He probably will
escape serious punishment be
cause he is a juvenile.
Police Capt. Will Fritz said the
youth, Simon Rodriguez. 16, ad
mitted shooting Janet Irene Man
gan twice and beating her. A cor
oner said the girl was raped, but
Rodriguez denied he had sexually
assaulted her. ,
Rodriguez has a police record
from the age of 10. He was in
volved in the arson of a school
in 1993.
News in Brief
For Wednesday, Jan. 2, 1957
NATIONAL
House Lenders Re-elect
Leaders forCongrcss Sec. 1, P. 1
Negro Shot on Bus by
New Orleans Officer Sec. 1. P. 1
LOCAL
f'haniber Head Names
Division Chairmen Sec. 1, P. 1
Holiday Liquor Sales
Boom Sec. 2, P. S
STATU
Linn Youths Arrested for
New Year Whoopee Sec. 1, P. I
FOREIGN
Khrushchev Reverses Field
on Stalinism See. 1, P. 1
Persian Gulf Storm Wrecks
Oil Rig, 20 Die Sec. 1. P. I
SPORTS
Iowa Beats Beavers in
Rose Bowl . Sec. 2, P. 1
South Salem Travels for
Hoop Tilt Sec. 2. P. 1
Bowl Game Provides
Thrills Sec. 2. P. 1
REGULAR FEATURES
Amusements Sec. 1, P. J
Editorials - Sec. 1. P. 4
Locals Sec. 1, P. 5
Society Sec. 1. P. . 7. 8. 9
Comics Sec. J. P.
Television Sec. 2. P. 7
Want Ads Sec. 2, P. 8. 9
Markets Sec. 2, P. )
Personal Problems ...Sec. 2, P. 7
Crossword Puzzle Sec. 2, P.
Home and Garden Sec. 2, P.