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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Sept. 22, 1955)
THURSDAY, SEPTEMBER 22. 1955 PAGE THIRTY-TWO - Dalles Aluminum Project Gets Federal Credit Okay WASHINGTON MV-The govern-1 tnent has yielded lo ihe Ihrea: of a 70 million dollar lawsuit in plfdsing lu credit to the Harvey Machine Co.'s aluminum project, hut officials insisted Wednesday nothing has been sacrificed except en administration principle. The aluminum is needed to ease an evident lon':term shnrtaxe. of ficials said, and such funds as may be advanced to Hnrvey for Its 15 million dollar plant at The Dulles, ore , should be rcp-.id quickly at fat rule of Interest-5 per cent. And the administration men de clare that the federal guaiantoe of any additional bank bofrowlnii required by the Torrance, Calil., firm does not establish a prece dent for otiier companies scckuiK to enter the aluminum field. Tne aacriiice Mea in reversal, for this one case, of the Elsenhower administration policy of limiting such guarantees to highly critical materials like titanium. Officials of the Office of Defense Mobilization and OeneiHl service Administration disclosed Tucstlnr night that Harvey won Its powc contract and loan guarantee la? week only aller threatening I sue the government for breech c contract. The suit was prepared by tlv New York law firm of Tnomp E. Dewey, and a member of thr firm, James E. Nlckerson. ncao' tlated the out-nf-court sctllemer which brought Harvey Its flnarclr aid. Harvey had obtained, early 1 IBM, government commitments er titling It to receive electricity f ror the Bonneville Power Admlnistra tlon, together with federal tax bene fits to help finance construction and a guaranty that the govern ment would buy part of the plant's early output. Harvey bought a plant, broke ground and commenced construct tlon. But the administration's In terest in another rotind of alum inum expansion lapsed and the gov ernment failed to provide funds for the power transmission facil ities between Bonneville and the Harvey site. The company halted construction, but kept trying to Jog the govern ment into action until four months ago. Then It served notice, through Nlckerson, that it had prepared a claim for 70 million dollars dn mages to be presented lo the U.S. Court of Claims for "repudiation of contract." CDM director Anthony S. Flcm mlng and other officials Inter viewed Tuesday disclosed that hap pened then: , Flemming, OSA administrator Edmund Measure, their general counsels, and high officials of the Interior Department and Budge', Bureau conferred, first with Nlck erson and then by themselves. They concluded that tho govern ment had made , a firm commit ment to Harvey, had then made an "anticipBtory repudiation" ol It; and that Harvey probably could collect In court if not 70 millions. , at least "many millions oi dollars.' 80 the government settled Har vey waived its stilt and ngreed to stand tne cost of the new power transmission station and lines. That part of the settlement was an nounced last week by Secretary of Uie Interior McKay, without the background details. The OSA under ODM authoriza tion, guaranteed to buy such metal as Harvey cannot sell to private buyers for five years after the start of production, and lo make Atkinson Gives Low Dam Bid PORTLAND I Two films which Jointly have done most of the construction work on The Dalles Dam Tuesday submitted the low bid to complete It. Army Engineers said Tuesday that. Guy F. Atkinson Co., Sun Francisco, and Ostrander Con struction Co., Portland, were low With a bid of $4,319,083. The work, the last mnor con Rli'uctlon project on the lingo Co lumbia niver dnin, calls lor build ing the last arm of the dam tu close the river. There also will be fills and grading work, miscel laneous roads, removal of coder flams and salvage of equipment from The Dalies Ccllln Canal, which Is being flooded by the dam. After the dnin construction Is completed, bids will be called for installation of equipment 111 Ihe powerhouse. The dam. In power In November, lo&T. will I have an Initial capacity of 1 '"j . I 000 kilowatts with 14 main u'cilcr-' ators and two lishwaler units. There will be room for clcht 1 additional generators which niav be Installed when more storage dsms aro built upstream. Ther I eight generators would add anoth-1 er 601,000 kilowatts. advance payments for part of this metal if necessary to bolster War vey's financing. And because as Nidter.son ex plained to the officials Harvey's bankers had lost confidence In the project when the -government failed to keep Its power commitment, the government agreed to under-write Harvey's bank borrowings. Flemming acknowledged that OlM "wouldn't touch" t h e pro posal It it came up today. But he said Harvey Is a technologically superior firm and: "We are dimply making good on commitments more than two years old." Flemming and G5A officials emphasized that the administration still frowns on such extraordinary inducements lor industrial expan slon projects, which contribute to the nation's war potential but now a days serve mainly to supply booming civilian demand. mm?- 7C 1.' m.. rrw, i "There, that looks more like him!" WASHINGTON OH The Asrl culture Department reported Wed nesday that Its looses in carry w; out farm! price support programs 404 during Ihe fiscal year ending last June 30. ' This figure compaied whh $419. 477.074 for the previous fiscal year, which was the highest up to that lime. The losses were incurred prin cipally' from giving away, or sell ing for less than cost, farm prod ucts acquired under price support purchases. There were losses also on loan liquidation operations of the support programs. The department reported that it had S7.0ijo.277.000 Invested in farm surnluses ar of June iO compared with $6,008,511,000 a year earlier The investment Included $2,097, 314,000 in loans on farm products being wlthnekT from markets by producers and $4,971,463,000 in ; commodities owned outright by the department. . The loans included: Cotton $1, ! 094,361,000, .corn - $469,850,000, to- j I bacco $402,556,000, wheat $32.246.-1 000 and $99,099,000 in other com modities, , Wheat, which poses perhaps the most serious suiplus problem for farmers and the government, topped the uiveotory list of prod ucts owned by the department at $2,546,79 1,000. Other Inventory Items Included: Corn $985,960,000. cotton $289,569, CAD, butter $169,346,000, grain sor ghum $141,717,000, cheese $139, 874,000. rice $124,968,000, wool $102,060,000, barley $95,110,000. cot ton linters $69,520,000, cottonseed oil t4O.7O8.O0O, oats $34,562,000 and dried milk. -$32,868,00. The department reported that price support operations on 1954 crops dropped considerably from those on 1W3 crops. Price support extended on 1954 crops through 1629.000 compared with $4,S05,M,. June 30, 1954. amounted to 52,842.-1 300 extended on 195.1 crops. FROM YOUR OWN CUSTOM MADE DEER HIDES Buckskin G'oves and Jackets Wl CO. THE TANNING ' TAILORMADE JACKETS 'East Main Shoe Shop 253 E. Main Owned and operated by Ralph D. Hunter Appearing at 97 SUPPER CLUB The Famous , Novelty Singer S,eak$ " WANDA LESTER Southern Fried Chicken 100 2 FLOOR SHOWS NIGHTLY! Aik ebeur our party service fw free coke. Ml. I-MJ1 RKMAflltlACK ritnPOSAL ! TAIPEI, Formosa, liu A Chinese Nationalist lawmaker pro poses that mainlanders In Formosa whose wives or husbands ate In Red China be permitted to rental ry without brlna liable to blRam'v charges. Miao Chi-pliiR told the Legislative Yuan i Parliament! there are at lcn.st 100,000 such inalnlantlers on tins Island. Housework Easy Without Nagging Backache Nt ging harkarh. riMiWrnv tr muacnUr r)ifml iiain mymr.nwMt.ri.rr. tl"n.rm"li('iml inrliMir tUy t iUv irrai l lain. And MVi h al and ih ink unn irl? omrlimrn turlrr mtlt hlaxliln imialinn 1 ...with thai rwlw. iinromfnrtahfc fwlmr II r"u art mitf i aM aitr) nrnini Uvan4 ft llmi ilirirnfi-i, I loan" 1'ilh rtfivn I kr Itirir rain tt lnai-nn, by their a-xth. (nf rnrt lo fi blajilrr irnlitlii.n. tr.( by thairmlMdlurtir arlion ihmngh Ihr ki'tntm Irnrlntr (n tBri-raw ttit output of thf 1$ 91 1 Ira of ai1nr lurira. 8n If naitginff Uratchf maVm ymi fl HiairttMt.out. mifftaflf,with i v.., alft. Iraiui;hlfi,tlin I wa.l.ltr llmin'i iMh.ffl Ida Mror happy rfltrf mttiion ha nj.i! fw ti$t lln rrara, Ak for nw. larvf rniMitir mm aJKl Nt DMnar. bl Uou l Uii uuj I MEW-W F0RD-! Here Tomorrow! The fine car at half the fine car price ! Willi ni202h. Now jou can have the new 202-h.p. Thunderbird Y-8 engine . . . with its instant response and wealth of reserve. This modern deep-block Y-8 is available in Fordomatic Fairlane and Station Wagon models. In Fordomatic Customline and Mainline models you can have the "G0"-packed 176-h.p. Y-8. And Ford's hew ' 137-h.p. Six is available in all 18 models. . . .with I iie Thimderbird styling e The new '56 Ford looks like Ihe Thunderbird, too! You'll find the .same graceful lines . . . the same long, low silhouette . , . the same dashing appearance . . . styling which helped the fabulous ForrJ Thunderbird to win America's heart. You can drive the new '56 Ford anywhere and everywhere, too . . with the assurance that it "belongs." For '56, Ford brings you the greatest safety news in a generation. It's new Lifeguard Design. In cooperation with universities, medical associations and safety experts, Ford learned that most serious injuries in accidents were caused by drivers being thrown against the steering past, occupants being thrown forward against hard interior surfaces, or being thrown out of the car. To provide extra protection against these hazards Ford developed the new Lifeguard features described at right. Rut there is still more wonderful news! Ford brings you the successor to the V-8 engine . . . the modern deep-block Y-8. It gives you extra-smooth, extra-quiet "GO" . . . longer engine life for greater savings. Ford creates fresh styling news, too, with Thunderbird beauty . . . rich new Luxury Lounge interiors . . . and quality workmanship throughout, Once you see it . . . and try it . . . you'll agree that the '56 Ford is the fin$ car at half the fine car price. Ford's new Lifeguard Design features are: a new Lifeguard steering wheel, with deep-center design, to act as a cushion in the event of an accident . . . new Lifeguard double-grip door locks to reduce the chance of doors springing open under severe shock . . . new optional Lifeguard padding for instrument panel and sun visors to help lessen injuries from impact . . . and optional seat belts to help keep occupants securely in their seats. These features combine to bring you the first major contribution to driver and passenger safety in automobile accidents . . . and yoil get them only in Ford. Come in See the new '56 FOP') tomorrow BALSIGER MOTOR CO. Main at Esplanade Klamath Falls, Ore.
