fridtr, Oetobar 7. 195S '
MCDFORD (OREGON) MAIL TRIBUNE SEVXN
John Day
Klamath Fall U. S. Sen.
Richard L. Neuberger, (D-Ore.)
and U.S. Congressman Sam Coon
(R-Ore.) last night continued
their "great debate" over power
policies before a crowd of nearly
SOO persons here.
, The discussion, next-to-last in
a series of 10, was held in the
auditorium of Mills school,
which was packed to near-capacity
with a good-natured crowd
which' appeared to be about
evenly divided between support
er! of the, two politicians and
those whocame to learn or just
to "watch the show."
Bwt of Lot
Mike Miksche, Prineville ra
dio station manager, a former
Medford radioman who helped
arrange . the series of debates,
said after last night's session it
was "the best of the lot so far,"
from the standpoints of both
public' acceptance and argu
mentation. The debate was not strictly a
public power vs. private power
. debate, for as both acknowl
edged, the proposed John Day
dam which is the subject of the
. argument would be a federal
project in all respects but two:
:() 7e bulk of the cost of the
dam $(273,000,000) would be
paid by local agencies including
private power firms, and (2)
These agencies, both public and
private, would have distribution
and retail sales rights for 50
years.
Owned by Government
t The dam itself would, be de
signed, built, operated and own
ed by the federal government,
and would be integrated into the
Northwest Power pool, under
the terms of Congressman
Coon's bill. Title of the debate
was, "Agreed, the John Day
Dam Bill is in the public inter
est." The congressman took the
Affirmative; the senator the neg-
'ative. .", -..
'. Congressman Coon opened the
debate with a 15-minute discus-
"- aion of the objectives of the bill
and a history of the project. The
1,105,000 kilowatts it would gen
erate, and the navigation up the
Columbia, to Pasco and the flood
control " benefits it would pro
vide are "needed and needed
now," he maintained..
Foresees Shortage . ' 1
The congressman said a criti
cal power shortage is on its way
to the Northwest by the early
1960s, and the dam should be
started now. He added that the
Northwest needs the equivalent
of "another Bonneville dam," or
600,000, ... new kilowatts, ea'ch
year for the next 10 years just
to keep up with normal growth
of the area.
"We need $1,000,000 spent
for power each day for the next
10 years," he declared. But, he
queried, "Where are we going
to get the money?"
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Dam Debate Brought to
Congressman Coon pointed
out that federal appropriations
for Northwest power have aver
aged only $150,000,000 annually
in recent years, a total equiva
lent to about one-third of the
federal civil functions budget,
in the area. This area alone will
need .the equivalent to 60 to 70
per cent of all federal public
works money, he said, and he
indicated that congress just
wouldn't go along with spending
that proportion of its money in
this area.
'Sell in Advance'
The simple and only purpose
of his bill is to "sell the power
in advance," the congressman
said, to obtain the estimated
$273,000,000 needed for con
struction of power facilities. The
other $37,000,000 for other pur
poses would be put up by the
federal government, and he said
he is sure congress would ap
prove this amount.
Senator Neuberger's charge
that it would "wreck the Bonne
ville Power administration plan,"
is "piire nonsense," he declared
and so is the suggestion that
private utilities would make
huge profits in the transaction.
He said Oregon laws limit to a
maximum of 6 per cent the
profits of private utilities.
Three-Point Attack
Senator Neuberger, in his 15
minute rebuttal period, based
his attack on the bill on three
related points, first!that distribu
tion by non-federal-' agencies
would eliminate the preference
clause, under which power goes
first to publicly-owned distribu
tion agencies; second that the
low Bonneville rate averaging
2.2 mills would be eliminated,
and third, that as a result of
the higher rates, industry would
no longer be attracted to the
Northwest as it was by the low
BPA rate.
The senator pointed to opposi
tion to the bill from the Rural
Electrificatin administration co
operatives, from the Grange and
from the- Oregon Federation of
Labor, indicating these agencies
know what higher rates would
mean in discouraging industry
from coming to this area. He
pointed out that the Northwest
power system, with its federal
dams and low cost power, is the
most successful development for
power, irrigation, navigation and
flood control ever organized any
where. Only Three Firms
He said only three big firms
are interested in the bill, none
of which were interested in serv
ing the Klamath Falls area in
the extreme southwest corner of
Congressman Coon's fourth con
gressional district. There is no
chance that the John Day dam,
as set up in the, bill, could furn
ish cheap power to that area, he
said. , "
Te cited the sale of the partly
completed BPA transmission line
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to Klamath Falls to the Cali
fornia Oregon Power company,
and said the only, chance for
Klamath Falls to get the cheap
BPA power rate is to get the
line rstored. (Coon earlier had
stated the line was never au
thorized, by congress, no appro
priations made for it, and that
a congressional committee had
ordered it dismantled, but that
Secretary of the Interior McKay
and then-Sen. Guy Cordon had
worked out the Copco sale, thus
saving the entire cost of the line
which would have been lost if it
had been scrapped.)
Rates Compared .
The senator declared that the
average power rate from private
utilities was 8.2 mills, compared
to BPA's 2.2 mills (which Coon
claimed was a misleading com
parison of "wholesale" and "re
tail" rates).
Senator Neuberger also point
ed out the Klamath area's popu
lation gain! in recent years has
been only 4 per cent, compared
to 40 per cent for Oregon as a
whole and 14 per cent for the
nation. He said the one great
chance for growth here, with
declining lumber sources and
lowered farm income, is in in
dustrial payrolls. The only way
to attract them, he said, is
through low-cost power. He
cited some of the benefits in tax
advantages which Wenatchee has
received since a big aluminum
plant went in there last year.
Raising Offer
The senator declared the pow
er utilities . are raising their of
fer of participation in building
the dam, from $164,000,000 last
year to $273,000,000 this year.
"What will it be next year?" he
asked.
He claimed the utilities stood
to make $5,000,000,000 in profits
in the 50-year period they would
have distribution rights on the
dam, and that they don't care
who owns it as long as they can
have the power.
Oregon's desperate need is for
year-around industry, he reem-
phasized, and the one big ad
vantage we have is in the BPA
low cost power.
Could Get Money
During his five-minute "affirm
ative rebuttal" period, the sen
ator declared that if the utilities
spent as much time and money
working for ' federal appropria
tions for power as they have in
opposing it, congress would be
willing- to appropriate the funds.
He cited the Bonneville repay
ment schedule, which is $65,
000,000 ahead of itself, and said
that the Republican 1954 con
gress did not even approve plan
ning funds, so 1957 would be
the earliest date for John Day
construction to begin.
In his final rebuttal period,
Congressman Coon reiterated his
stand that the power is needed
now, and that "we can't wait.'.'
He charged Neuberger would
prefer to let damsites lie idle
rather than permit them to be
built with non-federal money.
He claimed support for his bill
from the? Army engineers, the
bureau of the budget, the depart
ment of the interior, the federal
power commission, and from the
Oregon legislature, which sup
ports the dam no matter how it
is financed.
Cites Private Enterprise
He said his bill is designed to
meet the need for power at once,
and that he wants the 85 per cent
of Oregon people who now are
served., by non-federal ', sower
agencies to have a chance to
get it He declared that, while
the dam would be a federal proj
ect, it would be of benefit and
be sparked by private enterprise,
and he declared that it was pri
vate enterprise -"that made this
country great."
The two will conclude
debates tonight at Bend.
their
Lawsuit Charges
Blacklist by Union
Portland U.R) A $153,000
damage suit has been filed in
Federal Court here by a Van
couver, Wash., man who claims
the International Association of
Heat and Insulators and Asbestos
Workers prevented him from
working at his trade
The suit was filed by Michael
J. Monoghan, who said he is a
skilled mechanic in installing
heat and frost insulating ma
terials. A similar suit, filed by
Charles D. Gumsey, also of Van
couver, is pending.
Defendants were the union,
its Portland local No. 36, and the
fiberglass Engineering and Sup
ply Company.
Both men claim the union has
a monopoly in the field, and
that the company aided the mon
opoly by discharging them im
mediately after the plaintiffs
were hired in 1953. Monoghan
and Guernsey also claim the
union "blacklisted" them and
prevented them from working.
NEWSPAPER SOLD
Chester, Pa. (U.PJ The Ches
ter Times, 79-year-old" daily
afternoon paper with a circula
tion of 38,000, has been sold to
Publisher Robert S. Howard, it
was announced today.
Use Mail Tribune Want Ads -Dead
line Sunday Classified is at
noon Saturday. 10 a.m Monday for
Monday; other days 5:20 orevioua day.
Audience Gets Outline
The following outline of Con-
gressman Sam Coon's John Day
dam bill, subject of the debate
in Klamath Falls last night be
tween Congressman . Coon and
Senator Richard L. Neuberger,
was distributed to the audience
prior to the debate.
The event was sponsored by
the Modoc Toastmaster's club,
and Bob Perkins of that club
was toastm aster.
The Project
The John Day dam is a navi
gation, flood control and irriga
tion project with an initial in
stalled capacity of 1,105,000
kilowatts. The damsite is located
on the main stem of the Colum
bia river near the mouth of the
John Day river some 25 miles
upstream from the site of The
Dalles dam.
Five years ago Congress au
thorized the Army engineers to
construct the John Day dam. Up
to this year, however, Congress
has not appropriated any funds
to start building the multi-pur
pose project - '
Estimated cost of building the
John Day . dam is $310,000,000
This estimate is based on the
cost of building comparable
projects such as The Dalles and
other Columbia river dams.
The dam will fill in the last
gap on the main stem of the Co
lumbia . river, thus providing
slack water navigation from
Bonneville dam to the Pascc-
cr
m
' "
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Terms of the Bill
Congressman Coon's bill calls
for the government: 1. To design
the dam; 2. To build the dam;
3. To operate the dam; 4. To
operate the dam; 5. To integrate
Portland-Vancouver
Off Critical List
Salem (U.R The State Un
employment Commission said to
day that the Portland-Vancouver
area has been removed from the
list if critical unemployment
areas eligible for special treat
ment in defense contracts.
The four-county area, includ
ing Multnomah, Washington and
Clackamas counties in Oregon
and Clark county in Washington,
has been reclassified from Class
D to Class C among American
cities with unemployment prob
lems. ,
In its Class D position, the
Portland area won a contract for
ship conversion that will give
employment to about 1000 per
sons.
The commission has reported
labor shortages in many parts of
the state with a labor-surplus at
its lowest level in three years,
15.900. Non-farm workers in the
Portland area now total 248,000,
compared with 229,000 last win
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Falls by
Of Disputed Measure
the power in the Northwest
Power pool.
The bulk of the estimated
cost, $273,000,000, is alocated to
power. The remaining $37,ouu.-
000 is allocated to general bene
fit features of the dam such as
the navigation lock. In addition
to paying in advance for the
cost of power facilities, the local
interests are to pay for the fol
lowing: 1. Their proportionate share
of operating . and maintaining
the power facilities and the por
tion of the dam allocating pow
er; 2. Their proportionate share
of building, operating and main
taining fish - passing facilities;
3. Any cost of transmitting pow
er over federally-owned trans
mission lines; 4. Any charges lor
upstream and downstream pew
er benefits as determined by the
Federal Power commission.
.The Federal Power commls
sioh shall decide what local in
terests who apply shall have, a
share in building the dam and
Adenauer Confined
With Feverish Cod
Bonn, Germany (U.R) Chan
cellor Konrad Adenauer is con
fined to bed with a feverish cold,
a Bonn government spokesman
announced today.
The spokesman said the' 79
year-old Chancellor was forced
to cancel all scheduled appoint
ments for the next few days-
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Heuhferger, Coon
receiving 50-year power con
tracts. ,
Local interests are defined in
the bill as states or agencies of
states, people's utility districts,
public utility districts, munici
pal power systems, rural electric
cooperatives, private electric
utility companies or entities act
ing for or on behalf of one or
more of these agencies.
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