.11,1 The Gazette-Time PUBLISHED WEEKLY AND DEVOTED TO THE BEST INTERESTS OF MORROW COUNTY Volume 38, No. 3. IIEPPNEE OREGON, THURSDAY, APRIL 21, 1921. Subscription $2.00 Per Year COAL IS ONLY S3.2Q BUT S27.B5 FREIGHT KlrrtrlHi-iitloB of ItallruaiU 111 hi-op ra l'nnpirlnlliD I harem. Kurthrr Anturarnt fur Urvrltipmrnt of Hydro- Klrrtrlr I'owrr oa olnmliU Illvrr. (I'emlletnn EuBt Ontconlan.) lllackHinllh'ti coal used here routs 13.20 r ton at the mines In West Vir Klnla. The price of that coal laid down In Pendleton Is 130.85, the freluht he ing $27.C5 ier ton In carload lots. In other words nine tenths of the cost of this particular coal Is duo to the transportation charKe. The facts Illustrate how burdensome freight rales are and how they ham per Industry. Kvery farmer In eastern Orexon suffers from the high cost of transportinK blacksmith coal because every farmer has a certain amount of hlacksmllhlnu work to do. Each time the farmer pays II for hard coal 90 cents of that Bum sues to pay the frelRht from across the continent It will be said that the freight rate Is too hlith, yet the railroad officials will respond with the claim that even under present high rates the roads ore not making money. They make the claim that the roads are not meeting nperatinK expenses and at the present time are worrying about their ability to meet Interest payments on their bonds. That brings up the quest'lnn as to whether or not the railroads are being efficiently managed. It Is a question which permits of a variety of answers. In many respects American railroading is on a very efficient basis. Our rail road officials arc high grade men who know their business and the personnel of the trainmen is good. No one will deny inch facts. Ttut there is one master blunder com muted by the railroads nf the west. They are operating with coal and oil as fuel when potential hydro electric energy sufficient to operate every west ern road Is allowed to go unused. Wore the Umatilla rapids on the Columbia developed there would be power to operate the entire o..v. n & N. system by electricity and still leave more elec tricity than is being used In a large region trlhutnry to the power site. There are figures showing that this power can be generated at a low cost and there are figures showing that one electric locomotive doeB the work of three locomotives operated by means of coal. Officials of the Milwaukee road. whlh Is electrified, say that ex perience proves that electrified roads operate better during cold and stormy weather than during normal weather. Klectrlcity proves most efficient under conditions thnt make steam railroading most difficult and expensive. Miinagets of railroads Just now are saying much about the necessity of re ducing wages and they believe they are making headway toward such an end. Hut high wages alono are not respon sible for high transportation costs. The biggest need of railroading In the northwest is a new source of power. They should uno nature's fuel and stop using up a product that is exhaustible and Ihe transportation of which is In Itself a heavy drain upon the roads. I'eople are complaining about high freight rates and some day they will rebel In earnest unless relief is pro-J vided It Is time for the "beat minds" In railroad business to come to life on t lie subject of railroad electrification. If they do that It will not be long until such streams as the Columbia, the Snake and Deschutes are put to work and one big Item of railroad expense can be reduced thereby permitting of rates that do not stifle business. Tenehers Are Hired. The full corps of teachers for the Ileppner schools has not yet been se lected, but the most of them have. All but four of the present number of ten. chers in- the school have consented to remain and have signed up their con tracts for the coming school year. Those are Prof. Howard M. JameH, su perintendent; John W. Heard, principal; liemice Dnfoe, music; Rita Norrla, dom estic science and art; Iorena Palmateer, Kngllsh: Opal K. Clark, Mb. grade; Mrs. E. H. Morrison, opportunity room; Mrs. II. M. .lames, sth grade: Elizabeth lllx, 3rd grade; Kdna Turner, 1st grade; (llndys Turner, fith grade. Mrs. Anna Neel and son Leslie depart ed Monday for Wenatehee, Wash., whore she will Join her dnughtors Florence nnd Esther, and then go on from there to Casper, Wyoming to make their home in the future. Mrs. Noel will tnko charge of the home of Dan Halslon, who Is an extensive ranchman of the Casper section. 5 of the Season 1 Pavilion 1 1 IONE I April 23rd H Ileppner Music f For TruiiNimrtntlun frunl Ileppller nee Don ('NSC. r.i ll!ll!ilililllllirill!llllllllllllllll!ll!! BIG Legion Will Hold Another Smoker Saturday Evening What promises to be one of the very best smokers of the season will be held at American Legion quarters on Saturday evening by ileppner post. These smokem have always been highly entertaining and greatly appre ciated by the Heppner people, and the Legion boys have the promise of good program on this occasion, which will contain several finished matches In wrestling and with the gloves, and the program committee will also pre sent other Interesting features of en tertalnment. This will likely be the final smoker of the season, and it will be the en deavor of the LegionalreB to make It the very best. The usual admission fee will be charged and Legion quar ters should be filled to overflowing. FIHNT CHRISTIAN CIUUCH. Sunilsy, April 24, Sunday services at the usual hours bible school 10 a. m. ; Communion and preaching service following. Christian Endeavor service at 6:15 p. m. and preaching by the pastor at t o'clock All members should attend as a matter of duty; all visitors welcomed as a matter of fraternity, all strangerB cor dially received as a mtater of religious obligation. Whoever you are you will be welcome. Come. LIVINGSTONE, MinlBter. Homer Kwlek came over from Monu ment yesterday to get a shearing plant which he had purchased from Ullliam and IliBbee and which he will set up at his father's place near Monument, pre pared to do this season's shearing In that vicinity. Miss Mary Agostl, who has been teaching in the vicinity of Monument for the past two years, was a guest at the home of Mr. and Mrs Frank Turner over last night, being on her way to her home at Portland. IS Mnp Foot Tunkn Are Dujf I p. Re mainder of ."kelettia to be Placed on The skeleton of a mastodon, aparent y complete, was discovered .Sunday in Hutcher Knife canyon, about four miles southennt of Arlington, near Willow - reek, by William Marshall, a sheep herder in the employ of Nmythe Bros. Thop rehlsluric relic wan discovered by Marshall upon noting the point of one of the tusks sticking up several inches above the it and y soil in the sage brush. Fred Uanielson, camp tender for the Vmytho Hrus, shearing plant and camps, brought one of the tusks to Arlington. The tusk measured exact ly nine feet from the base, which la 12 inches in diameter, to the tip and is a perfect specimen. Mr. PanieUon said that the skeleton of the prehistoric mammal is complete, as far as could he determined from a preliminary excavation, and Arlingtotn citizens are planning to have the find xhtimed and brought to town for exhi bition purposes. Kemmmts of prehis toric animals have been found in this territory before, but this la the first time that a complete specimen has boon discovered, FOREIGN TRADE EXPERT JOINS U. OF 0. FACULTY University of Oregon, Eugene, Apt 11 IS. Frank It. Hutter, formerly statis tical advisor of the department of com merce and now assistant director of ihe national bureau of foreign and domestic commerce, has been elected to the Uni versity of Oregon faculty as professor of foreign trade, In the School of Com merce. Mr. nutter will begin his professional work next fall. He Is a graduate of John Hopkins University with a 'h D. degree. For eleven years Mr. Ruttor was connected with the department of agriculture, whore ho studied exclus ively foreign questions, especially su gar, because of its Importance from a protectionist point of view. For two years ho was a resident in London as special Kuropean agent of the depart ment of agriculture, and visited the continent, studying farming conditions in Koumnnla nnd the Balkan states. In 1910 Mr. Mutter was transferred to the department of commerce as tariff expert, in which capacity he visited the South American countries studying tho actual administration of tariffs. The position of assistant chief of the bureau of foreign nnd domestic commerce was held Ivy Mr. Hutter for several years, resigning to become commercial at tache at Toklo. He has wrlten several valuable handbooks nnd articles on economic conditions In the Far East, Academic work has been done by Mr. Hutter in universities nil over the United States. He has lectured In tho University of Iowa, John HopklnB Uni versity, and Georgetown University. Mr. flutter will lecture on foreign trade nnd on trans-Pacific trade nt tho coming summer session of the University of California. The addition of a professor of nation nl repute Is part of tho expansion of the school of commerce, being carried on by Pean ltobbins. Tho foreign trade department particularly Is being en larger!. The Indies of tho C. L. S, club will give a May Hay dance, Saturday eve ning, April 31st, nt tho Hotel Patrick Everybody Invited. TRYING TO JAP IT LOOSE r WHA'S f T ? I Loosen y The high school play given last Fri day night was a big success. The young people who took part In this play have been hard at work for several weeks and should be given credit for their ex cellent presntation of "Safety First." Synopsis of the Play. Jack Montgomery, a young husband. and Jerry Arnold become Involved with the police when they attempt to keep I.lmer Flannel, Jack's cousin from mar rying Zuleika, a young Turkish girl. Zuleika Is captured but Jack and Jer ry make their get-away. Later, a de tective, Mr. McNutt, Is sent by the po lice to arreBt Jack and Jerry for as saulting an officer of the law. In order to keep his wife from finding out where he Is going, Jack tells her that he and Jerry have been appointed delegates fa the Shrlners' convention to be held in Florida. They are then taken to Jail by McNutt to serve out their sen tence of thirty days. Ahou Ben Mocha, the terrible Turk, creates much excitement In his at tempts to find his daughter Zuleika. Mary Ann, the Irish cook, who Is In love with McN'utt Is much concerned by the apparent elopement of McNutt with the Turkish girl. Some time later. Jack's wife, Mabel Montgomery, re ceives a telegram from the Bhlp's cap tain Informing her of the disappearance of .lark Montgomery and Jerry Arnold. When their sentence Is served out lack and Jerry return home and are requested to account for their return, as they have been mourned as dead. They tell of the "shipwreck" and how they were "saved." Finally they are found out, Virginia and Mabel are re conciled to Jack and Jerry, Mary Ann and McNutt agree, nnd Elmer Flannel marries his Turkish girl, Zuleika. The Lexington high school baseball nine won a victory over the Condon nine last Saturday In the best game of the season. Hill and Garrett In the box for Lex ington held the visitors to five hits. only two scores being run In. Jnckson In the box for Condon pitch ed excellent ball. The Lexington nine had a fine trio In the field. The score was 5 to 2 In favor of Lexington. The next game at Lexington will be with Tone, Friday, April 22nd. "What Happened to Jones?' On Friday evening, April 22, the Ileppner high school student body will present "What Happened to Jones," a play by Georye Broadhurst, In the school auditorium. Some blushing new actors will be presented to the Hepp ner public, as well as recogniaed stars. Following Is the cast of characters: Jones, who travels for a hymn book house Austin Smith Ehenezer Goodly, Professor of Anat omy Phillip Mahoney Matilda Goodly, his wife Reltha Owens Anthony Goodly, D. D his brother Held Busclck Minerva nnd Marjorln, his daughters Ruth French, Kathleen Mahoney Cissy, his ward Bernlce Franklin Helnia, his Swedish servant. Ruth Tash ltlgbee, a sanatorium Inmate Leo Flower Fuller, the sanatorium superintend ent Russcl Wright Holder, a policeman. ...Howard McDuffee Alvina Starlight, Mrs. Ooodly's sis ter Agnes Boyd Richard Hentherly, Marjorle's fiance Keith Logan The play Is being coached by Miss Chuinard. If you want a good time, go Friday evening. Admission 2S and SO cents. Elks Install New (llllcers. On Inst Thursday evening, Heppner Lodge No. 3SS, B. P. O. E. Installed the following officers: Chas B. Cox, exalted ruler; B. P. Stone, esteemed leading knight; L. E. Mtkesell, esteemed loyal knight; L. L. Gilliam, esteemed lectur ing knight; Gay M. Anderson, secre tary; Walter Moore, treasurer; Ray M. Ovlnlt, tyler; S. W. Spencer, trustee. C. 13. Cox was chosen as delegate to the grand lodge which meets next sum mer nt Los Angeles. Following the Installation there was initiatory cer emonies nnd a lunch of sandwiches and coffee, Mr. nnd Mrs. W. W. Hownrd, of But ter creek were shopping In Heppner on Monday. EXAMPLE III ECONOMY Washington, April 18. Thrift has perched above the White House door. Until President and Mrs. Harding moved Into the White House it has al ways been the practice of the House Apropriations Commltttee to provide for the purchase f furniture for the private apartments of the president and his family. But, as an example for Government economy, President and Mrs. Harding have no Intention of using a congressional appropriation for fur nishing these apartments. Instead the furniture will come from their own Marlon and Washington homes. Give the average American earner an opportunity of furnishing a home lav ishly with oriental rugs, mahogany fur niture, beautiful paintings and costly draperies, and he will take It even though he may know that the funds, making this purchase posaiMe and com ing out of the public treasury, will work a hardship upon the country's taxpayers. It Is a difficult task to show the average earner that in the conduct of his own affairs and in the disburse ment of his own earningB he should practice thrift and economy. Economy, like charity, should begin at home. It is easy enough to strad dle a neighbor's fence and talk long and vigorously about plans and pro grams that if followed out by the "oth er fellow" would Improve conditions but the real Job is for Individuals them selves to begin a program of economy and thrift at home. The United States Treasury Depart ment, In carrying on the Savings move ment, is endeavoring to Impress upon the mind of every American earner de siring sound advice the advisability of beginning a program.of thrift and econ omy In their own personal affairs. It urges saving and sound investment It urges that whenever any Individual makes an appropriation out of his own funds, and for his own needs, he use the Judgment of President and Mrs. Harding when they, appreciating the necessity for a program of economy In putting the business of our country back to normal, decided It unwise to spend the funds commonly provided by the House Appropriations Committee for the purchase of furniture when this furniture might be brought from their own homes at Marlon and Washington. That every earner may begin saving at home, special Savings Securities have been Issued by tho United States Treas ury Department These securities from the 25-cent Thrift Stamp to the $1000 Treasury Savings Certificate are the best in the world. Talk with your Postmaster about them. I, astern Star Will Entertain Grand Worthy Matron. Ruth Chapter No. 32. O. E. S. will meet In regular session at Masonic hall on tomorrow, Friday evening, and on Saturday evening will hold a special session and reception In honor of Mrs. Ida Umbaeh, Grand Worthy Matron of Oregon, who Is making an official visit of the chapter at this time. At 6:00 p. m. on Saturday evening the members of thee hapter will gather at the hall for dinner, following which there will be initiation of candidates and a recep tion to Mrs. Umbach. The members will please take notice that the regular meeting of the chapter will be held on Friday evening. NANCY M. MACKEY-MEEK. Nancy Marietta Mackey-Meek, who was born April 11, 1S36. died on Sun day, April 10, 1921, at the home of her daughter, Mrs. E. M. Curran, In Port land, aged 85 years. She married Ell Meek in 1855. Ho was a nephew of the noted pioneer, Joseph L. Meek. The family came to Oregon from Joseph, Mo., in I SS4, stopping at The Dalles for a year and then settled near Condon. Mr. Meek died In ISSfi and for years Mrs. Meek managed the farm. Mrs. Meek who Is the mother of Mrs. Mnttle Serlvner of this city, , made her home in Heppner for sometime after retiring from the farm nt Condon, and later went to Portlnnd to reside. She was of Irish nnd Welsh parentage, being a direct descendent of the royal Irish family of Mackey. Mrs. Meek Is sur vived by nine children, seventeen grandchildren nnd fourteen great grandchildren. Her funeral was held at Condon on last Thursday. C. H. Bartholomew, leading farmer of the Pine City country, was a visitor in Heppner on Saturday. mmi i.o.o.F.10 CELEBRATEANNIVERSARY The Three Male Pratrralty ( that CHr Will Katrrtala the Lodge ef the oosly l Appropriate Manser. The 102nd anniversary of Odd Fellow ship will be fittingly commemorated by Hardman Lodge In a celebration of the event at that place on the 26th of this. month. It Is the Intention of the lodge there to entertain the other lodges of the county, so we are Informed, and suita ble preparations are now being made to that end. So on next Tuesday the pil grimage of Morrow county Odd Fel lows will Bet In toward Hardman, w here, we are sure they will find a roy al good welcome as well as splendid entertainment This office received a very pleasant call last Friday morning from Mr. and Mrs. Geo. H. Flagg, of Condon. Mr. Flagg Is publisher of the Condon Globe Times and Mrs. Flagg is his able as sistant, being a printer and linotype operator and doing much of the mech anical work in the Globe-Times office. Mr. Flagg came over to Heppner to take the degrees in the Elks lodge, and then he and Mrs. Flagg Journeyed on over to Pendleton to spend a day be fore going back to Condon. We are glad to acknowledge this pleasant call from the Condon publishers, who, by the way are getting out a mighty fine paper that evidently Is fully appreciat ed by the people of the Gilliam county capitol. Judging from the fine patron age they receive. The rabbit drive In Juniper canyon last Sunday was quite largely attended, and the destruction of the pests amoun ted In total to about 500, from what information we have been able to gath er. There is an abundance of black tails down that way but this la not a very good time of year to corral them. The weather having turned pret ty warm the rabbits take to the hills and it Is not an easy matter to get them bunched. In colder weather they are gathered In the big sage brush In the canyons and then it Is not so much trouble to get them Into the pens, where they can be clubbed. OKE-SID GAME IN Heppner was again winner Saturday when they met and defeated Boardman high school. The game was slow and poor ball was played. There was little excitement aside from that caused by two home runs by Aiken and one each for Ferguson and Cason. Peterson played his usual good game, and was relieved In the seventh inning by Young who finished good. Heppner Hi meets Pilot Rock HI Friday afternoon at 3:15. The stores and business houses are requested to close for an hour and a half and all turn out for the game. The high school is in the hole and needs your support. The student body will present the comedy "What Happened to Jones" at the high school auditorium Friday, April 22nd at S:00. Miss Chuinard has been coaching the play and insures the public that they will get all that Is coming to them, as It Is real good. This comedy was written by the well-known playwright, George H. Broadhurst, and should please you. Hill Military Academy base ball team of Portland is going to make a tour of eastern Oregon in May and have asked us to play them on the 27th and 28th. We have decided to do this, so keep your eyes open for further notice. Katherine Pattison has been very ill lately at her home but has finally got on the road to recovery. Hurry up Katherine, we miss you. Holt Grimes has been ill for two or three days. The illness Is due to the .girls or the teachers, quotes Ole. The annual staff have been hard at work this week getting the cuts ready. The annual will be out In May some tlrfte and the department Is ready for orders now. Our debating team Is on the last stretch to the championship. They are working faithfully and are hoping to win, Bernlce Sigsbee returned after an ab sence of several days, due to a stiff neck obtained while playing volley ball. the nrn.M. dhaiw By Spencer Akers. .The little town has been forsaken. By all the girls and boys; Along with them, of course, they've taken Its highest hopes and Joys. The country, more, they say Is ailing. Than any little town: Because Its younger folks are falling. They say, to settle down. The city with Its gay surroundings, Has made a higher bid; Although It seems somewhat astoun ding, That very thing she did. She cast her lino so nicely baited, It seems Just over night. Those Jolly ones for which she waited, Have been induced to bite. What means this rush through the na ttoa, Along the great highway, Of all the younger generation, To cities bright and gay? Some folks are madly seeking pleasure, And cast all else aside; Some hoping for a life of leisure, Where kir.gs and queens abide. The farm nnd village, what a pity, That they must suffer pain, Because those fellows from the city, Refuse to stop the drain. Methlnks I see the lane a turning, And those who bit the hook, This motto, they at last nre learning: "Don't leap before you look." Former Morrow Boy With S Marines in Hawaiian Islands . Alva Hoskins, who formerly resided near Parkers Mill in this county with his parents. Mr. and Mrs. Augustus O. Hoskins, Is now with the U. 8. Marines in the Hawaiian Islands, and the fol lowing, taken from the Exeter, Calif., Sun, and forwarded this paper by one of our California subscribers. Is a brief accounto fthe present location of the young man, which will doubtless be of Interest to his former Monro county friends: "A desire to see the Hawaiian Is lands, made famous In song and story has been realized by Alva D. Hoskins of Exeter, who Is now stationed with the V. S. Marines at Pearl Harbor, close to the city of Honolulu. "Alva, who Is the son of Augustus O. Hoskins of Kxeter, Joined the Marines at Fresno last August, and for a while waa stationed at Mare Island when he succeeded In qualifying for a marks man. He left for Honolulu last No vember. "Pearl Harbor is only twenty minutes by trolley from Honolulu, and a short distance from the famous beach at Waiklkl. The Marines are on guard protecting the large naval base of the Pacific fleet They enjoy many oppor tunities for sight-seeing, and frequent ly visit the more remote parts of the island while on furlough." Heppner Post Office Ad vanced to Second Class We are Informed by Postmaster Richardson that, effective July 1st, the Heppner postoffice will be placed In the second class, and take Its placj along with such offices as that of Pen dleton, The Dalles, Bend, Baker, etc. This is quite a distinction for a city the size of Heppner and Is evidence of the large amount of mail mattter that is handled through the local office. This promotion does not carry with It. however, any increase directly In the salary of the postmaster, but it does provide for additional clerks which will materially aid In expiditing the work of the office and add to the facil ities for accommodation of the patrons. C. E. Muxgrave Dies. Carrol Edmundson Musgrave, a resi dent of Pendleton for the past several years, died today at St Anthony's hos pital, at the age of 66. His death was due to complications following influ enza. He Is survived by his wife, Mrs. Sarah Musgrave; 2 step-children, Mrs. Adolph Mayer, of Waterville, Wash.; XL E. Bundy, of Lexington, Ore.; his moth er, Mrs. Mary J. Musgrave, of The Dal les; three brothers, Nathan Musgrave, of The Dalles, John Musgrave of Walla Walla, Henry Musgrave of Pasco and a sister, Mrs. Melissa Branson, of Lewis ton, Idaho. He was born in Texas near the north fork of the Brazos river and was the first white child born in that vicinity. In 186S, his parents moved to Dayton where he lived until the early 80's when he went to Lexington to engage in stock raising and farm ing. He was a member of the Chris tian church. Funeral services will be held at the Brown chapel at 2 p. m. tomorrow. East Oregonian. Receives Kick by Horse. Jack Jones, who works for D. Cox near Lexington, was kicked by a horse last Sunday, and was laid out for a time. The imprint of the horse's hoof was left over Mr. Jones' right eye. Dr. McMurdo was called to attend him and It took ten stitches to close up the wound in the man's forehead. His injuries were not very serious and Mr. Jones is now getting along all right. T.B.SEAL SALE RECEIVEO Portland, Ore., April 15th Aprosim- ately J3S.700 is the sum Oregon contri buted for the prevention of tuberculo sis in the state through the 1920 Christ mas Seal Sale, which provides the sole support for the Oregon Tuberculosis Association. This amount is an increase of $7000 over last year. The associa tion's 1921 program has been broadened to include more public health nurses. free clinics, educational canipMRns, leg islation, child welfare work and sur veys. Twelve counties now have public health organizations and Mrs. Sadie Orr-Dunbar, executive secretary, has been personally directing organization work for Marion and will go to Klam ath and Lake counties in May for the same purpose. Miss Fbba Djupo has been added to the staff as demonstra tion nurse and is now conducting a three month's program in Douglas ounty. The state Bureau of Nursing, organized by the associative, was re cently g-iven an Appropriation of 2(V 000 by the legislature and incorporated as a department of the board of health A total enrollment of R2.000 school children In the Modern Health '"'rnsade has been effected by Miss Elizabeth Hopper, state director. All supplies are sent free to the schools and the crusade system of instilling health habits in children has achieved national recog nition. Tuberculosis surveys and clinics comprise a large extension of the asso ciation's program. Surveys have been recently completed of Clatsop and Col umbia counties by Robert V. Oshorn field executive and campaign directors. A free tuberculosis clinic it Astoria, March 1 5, attracted nearly ) people for examination. A similar clinic will be held at St. Helens. April 20th. Tho association is ready to give free coop eration to any medical organizer In the state for clinics. A special survey of tuberculosis conditions in Fortlanrl and Multnomah county, the largest yet at tempted in the west, Is being conducted by Miss draco Holmes for the state as sociation. The entire program Is mad possible by the sale of Chrlstmaa seals. PIE REHEARING ARGUED A! SALEM Pnbltr Service (obqiImIoi la Told Com pmuf Chance More Thaa Kaouga for Fair He t lira oa Capital. Salem, Ore., April 18. Rehearing of the Pacific Telephone and Telegraph rate case and suspension of the recent ly increased charges pending a final order In the controversy were sought in a petition submitted by the city of Portland and argued before the Oregon public service commission here today. Oral testimony placed before the commission indicated that practically every important city and town in Ore gon had Joined with the city of Port land in Us action for a reharing of the case, while the Oregon State Hotel as sociation intervened through a separ ate petition presented by Lawrence Mc N'ary, attorney for the organization. Rate Sapeaatoa Questioned. James T. Shaw, general attorney for the telephone corporation, with head quarters in San Francisco, whllo ad mitting that the public service commis sion had authority to order a rehearing of the case, declared that It was not within the rights of the commission to suspend the present rates, which had been in effect for more than 30 days. Mr. Shaw contended that this question had been settled in the courts and there were numerous decisions on the sub ject In opening the case for the petition ers Frank Grant, city attorney of Port land, alleged in part that the present rates of the corporation were excessive, service poor and inadequate, profits un reasonable and that the rate base on which the advanced charges were com puted was too high. Reference also was made by Mr. Grant to the enor mous profits of the American Telephone and Telegraph company, parent corpor ation of the Pacific Telephone and Tel egraph company. He said that any ex tension, unless absolutely necessray, should be delayed until conditions re turned to normal. Average Hiae 30 Per Ceat. Mr. Grant said investigation had showed that the increase In some In stances was as much as 200 per cent, while the average advance throughout the state exceeded 30 per cent Attorney McNary, in submitting the petition of the Oregon State Hotel as sociation, alleged that the former rates were more than sufficient for operation, plus a fair return on the investment; that the service had not improved since the new rates went Into effect and some classifications were extortionate in that the increases ranged from 50 to 225 per cent He said he had been able to find one single case as the rates affected hotels where the Increase was as low as 30 per cent Investigation, he said, showed that the cost of outgoing calls from hotels averaged IS cents each, while a hotel operated at The Dalles had provided revenue to the telephone corporation aggregating J1S73.40 in one year in ad dition to the usual overhead charges. Shaw Explain) Rate. Attorney Shaw denied that outgoing calls from hotels averaged 15 cents each, and in reply to Mr. McNary said the proprietors of Oregon hostelrtea had no grounds for complaint. He con tended that the increase in hotel rates stood out prominently in the recent or der of the public service commission for the reason that this was the first advance in charges they had experienc ed since pre-war days. He said that despite undisputable re cords which showed that hotel service was the most abused of any telephone classifications, these rates had been in creased merely to the level of the charges imposed upon residence sub scribers. Kate Base Defended. With reference to farmers' lines Mr. Shaw said this class of service was the most trying of any, and that in only a few instances was the revenue sufficient to defray the cost of service. The relationship between the Western Klectric company, American Telephone and Tleeraph and the Pcific Telephone and Telegraph company. Attorney Shaw said, has been investigated upon many occasions and had been approved and commended by the courts. Tt was Attorney Shaw's contention that the people of Oregon were enjoy ing a great advantage over other lo calities in that the rate base was $U, 000.000. while the valuations tota'ed $2.", 000.000. If the case is reopened At torney Shaw intimated that an attempt would be made to have these valuations increased to $30,000,000. Any disturb ance of the present rates. Mr. Shaw said, would be equivalent to confisca tion of the telephone company's prop erty. He said also, that if '.he case were reopened, the integrity of every order issued by the public service commis sion in connecetion with the telephone company's rates since the year 1 91 would be brought into question. At these various hearings, he said, the ex hibits numbered more than 2 "ft. Order Dexdaretl Miwt Drnntb-. II. M. Tomlinson, assistant city at torney of Portland, said the recent or der of the Oregon public service com mission w:is the most drastic of anv re corded in any state since the close of tli e war, and that two months' exL,pr tence may have disclosed the result that the corporation would have madn more money under the old rattt than under the increnscd charges. He said a period of declining price was at hand, which made the situation more acute. Conini Ixsioner Fred Pin-htfl inter rupted Mr. Tom 1 fn mon and as kef i : "lo you think that the wuk"h of op- orators and phone empluyei should b reduced?" "Tli at Is a t's t ' o n that will have to he looked Into," replied Mr. Tom linson. "That may tie the result of this readjustment that has got to h made. We have gut to got at a baU whereby the utility ran operate, acid give service to tho peuple,"