IX MEDFORD (OREGON! MAIL TRIBUNE
Thursday. February 3. 1950
f
s
r Washington Report
By Bob Dickey
wuchtnfffnn Fph. 2 There has
been a virtual battle of giants
raging here in wasningiun iui
the past couple of weeks over
the ultimate disposition of the
common stock of a Northwest
Dower comDany.
The stage for the affray was
4 ...wAn tta eonnritifis nnrl ex-
Bet Wlicil : ,
change commission ordered tne
American rower ana isni turn
pany broken up pursuant to the
holding company ati ""
American Power and Light is
a private power holding com-
...i.;i KnntmiG a number
of power companies all over the
nation. Included among its sub
sidiaries is Paciiic Power and
Light.
Since American holds all the
common stock of racuic, in me
nt HtchHnHini; American
the Pacific common stock has
been put on the block and this
is thO root 01 me present iu".
American Head Finagles
Instead of offering the Pacific
common stock to competitive bid
ders as is normally required by
i j...nA t. A1W. the head
law, huw" - ' : ,
of American, began some private
finagling on me siae.
He entered into negotiations
with two different groups of fi
nanciers. One was headed up by
B. J. van ingen ana cuiuijohj
and the spokesman for the other
group was A. C. Allen and com-nnnv.
While both of these groups
represented Wall sireei duiikius
i. 4- (ka tvn nf Hpnls theV
were offering for the purchase
of the Pacitic siuck was
tically different.
The Allen group ultimately of
fered to pay American 15 mil
lion dollars cash for the Pacific
stock. And they also promised
to out the stock on the Seattle
and Portland stock exchanges,
thus preserving the Pacific Pow
er and Light company.
Credit Wanted
In contrast, the Van Ingen
group, while they promised to
pay more in the end, wanted to
buy on credit. Furthermore, in
stead of preserving Pacific Power
and Light, they were going to
sell the company's ProP.er.;y
piecemeal throughout the North
west for the best price they
could get. ,
American Power's head, How
ard Aller, who is well known as
a slick operator, had a chance
to make a sizeably larger amount
of money from the Van Ingen
offer, so on January 4 of this
year he entered into a contract
with them. , , .
But as an example of how
close he was playing it, he dldn t
even tell Paul B. McKee, Pa
cific Power's president, that the
Pacific stock was contracted to
be sold. He also refused to tell
the Allen group that the deal
was closed. Instead, he pretended
that he was still interested in
their offer and continued to ne
gotiate with them.
Protest From West
When word of these machina
tions leaked out to the North
west, a volcano of protest erupt
ed. And at the securities and
exchange commission's recent
hearing on the merits of Amer
ican's sale of the Pacific stock
to the Van Ingen group, the
wash was thoroughly aired.
Representatives of the Pacific
company, of the Slate of Ore
gon, of the State of Washington,
and numerous other groups were
permitted to tell their story.
J. L. Kennedy, chief account
ant for the Oregon utilities com
mission, appeared in protest to
the sale for the state, nyd num
erous other Oregon organizations
filed thc'ir disapproval.
Some of these were: the Port
land city council; The Dalles,
through its mayor, Fred Hauser;
and the chambers of commerce
of Redmond, The Dalles, Free
water and Pendleton.
Tempers Flare
The hearings started out In
low gear but before long tem
pers were flaring. It soon be
came apparent that the public
interest was only a collateral
issue. The real scrap was be
tween two private power com
panies. It was the head of the parent
company, American Power and
Light, pitted against the directors
of Ihe subsidiary. Pacific Power
and Light. Pacific was making
a last ditch stand in its fight
for survival, while the head of
American was trying to pull off
a sub rosa deal to make a clean
up. During the process of the hear
ings there were some startling
disclosures. John Laing of Port
land, an attorney for Pacific
Power, was permitted to ques
tion representatives of the Van
Ingen group in regard to the de
tails of their contract with Aller
of American.
Laing succeeded In goading
out a confession that the Van
Ingen group was going to peddle
the Pacific properties chiefly to
public power groups in the
Northwest through a contact man
named Guy Meyers of Seattle.
$400,000 for Promoter
It was admitted that Meyers
was eoine to "soak" the various
local utility groups all he could!
get for the properties. It also
was nroueni out mai ivieyers
could make up to $400,000 on the
transaction.
What this amounted to wa
that the parent private powei
company, American, was not
only playing looisie wnn puunt
power it was going to sacrifice
its private power subsidiary com
pany, Pacific, at the altar oi
public power. Then at the same
time, it was going to work over
the public power groups Dy sell
ing the Pacific property to the
Van Ingen group, who in turn,
was letting the promoter, Mey
ers, peddle the property to the
public power groups at outland
ish prices. j
Meanwhile, all this time the j
Allen group was standing by :
with its 15 million dollar cash
offer, hoping to get a good buy
for Itself.
The Pacific Power people were
agreeable to the Allen bid be
cause they were going to be per
mitted to continue in existence
under the terms of the deal. They
were only protesting the sale lo
the Van Ingen group because
they would be destroyed under
its terms. j
SEC Vetoes Both Deals
The fracas isn't settled yet.
The securities and exchange
rnmmissinn turned thumbs down
on both the Van Ingen and Allen
deals. Any new deals cooked up
will have to have SEC approval
before a sale of Pacific Power
to anybody can be consumated.
RESCUERS RESCUED
Nashville. Ind. (U.R) Stale
highway department employes
Virgil Woods and Lee Lister
were busy during a Hood helping
motorists and keeping check on
the flood waters. They were driv
ing along a flooded section of
the road when their truck slid
off into a ditch. They crawled ;
onto the top of their truck and
waited until rescuers came to
rescue the rescuers. !
FOREVER CONTRARY
Newton. Mass. (U.R) Amber,
a cat owned by little Patricia
Humphrey, Is lncnmy wun
mice, bites people and hates cat
nip.
MEDFORD
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127 E. 6th
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9 A.M. 10 30 P.M.
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PORK SAUSAGE lb. 45'
PICNICS ,s sS" ' lb. 37c
STANDING
RIB ROAST
Juicy and Tender
b.69e
Rib Steaks . lb. 69c
STEAKS lb.75c
T-BONE STEAKS lb. 89c
SHORT RIBS,., lb. 291
PORK LIVER lb. 291
OYSTERS
med. sizes pint
65'
rUII I Concentrated Roll L rrC
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SLICED
BACON
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These are selected birds, plump with tender, sweet
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PRICES
Effective Thursday,
Friday and Saturday
CAMAY 3 !.?; 23c
BEAUTY Bath
SOAP Siie
2 for 21
SALMON
Prince Leo
Pink Salmon
No. 1
Can
39'
TIDE sT 73c
VEL VM! 27c
IVORY -fifff
All-Purpose Bar 2 FOR25C
IVORY ,2&oz 27c
Snow
SPRY as 77c
Shortening
WHITE
MAGIC
SOAP
DALEWOOD
Margarine
2 Lbs.
45
1 9c
c .Z... I
mm m " '
Pork & Beans Vin Camp
Green Beans Garaensidt
Corned Bee' Libby'l
Pineapple Libby sliced
Pineapple Juice Dolt
Cranberry Jelly I'M
Pumpkin Moonbeam
Swift's Prem
Syrup Sleepy Hollow
Cheese Food Fir.,;d.
Pie Crust Mix Pilltbury
Pancake Flour Suxanna 3 -lb. pko,. 43c
Sandwich Spread Lunch Box pint
33c
Nob Hill Coffee lb 72c 2 lb. $1.43
Airway Coffee lb. bag 69c 2 , b $1.37
Edwards Coffee lb. bag 77c 2 ,b $1.53
Areo Gloss Starch 1i 0,. Dk.. 12c
SPAGHETTI &2I25'
GRADE 'A
EGGS
LARGE
SI7K
0 43c
Dox.
No. 2 can
no. 2. 2 25c
12-oi. can
39c
No. 1 c.is I 5C
N..r.229C
2 c. 25c
No. IVl c.n
43c
26-oi. bottle 49c
2-lb. loaf 75C
9-oi. pkg. I8C
23-ox. Pkg.
25'
White Magic Contest New In full
swing Get details at your
nearest Safeway.
Potatoes
Oranges
Grapefruit
Avocados 2 for 29c
Carrots per lb. 9c
Cauliflower lb. 19c
Celery ... lb. 12c
U. S. No. I
Netted Gems
10-lb.
Sack
49c
if s.Ws
! "Sf 7
IS aT
f
Iffew-o-i
fox 7
jpii$c
jijffiyT:iiiil,..111a,,,M.i.Mal-
Seedless fl
Navels lb. BW
c Florida 5-lb.
Oranges Bag
7-lb.
Sweet Coachellas Sck
Parsnips . . lb. 10c
Spinach 10-oz. 23c
Tomatoes 23c
Turnips ... lb. 9c
53
69c xvi
1 mWmW
Winesap
PPLES
Excellent all-purpose apple
Packed in cellophane
5-lb. Pkg.
43c
DOMtOVCIT! CATS. TOO! ?A
J