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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Dec. 10, 1963)
$40 Million Loss Led To Closure NEW YORK UPi - The chairman of the Board of Studebaker Corp. said today Die company's South Bend plant will be shut down within a week or two after it completes its present production sched ules. In a news conference here, Studebaker Board Chairman Randolph H. Guthrie said "we are sorry we find it necessary to put people out of work in South Bend. "We are doing it only be cause we lost so much money in the automobile business w hile in South Bend." Guthrie said. "The Hamilton (Ont.l move is the only way to stay in t h e business indefinitely and make a profit." Studebaker announced it his shown a recent loss of MO mil lion in trying to keep the South Bend plant open. "Studebaker was being bled I w hite in South Bend," Guthrie said. "We ust couldn't make it pay there." He said it would not be possi ble to move many technicians or other employes from South Bend. They will get severance pay, he said, while the hourly employes are covered under the contract with the I'nilcd Auto Workers (UAV, giving them supplemental benefits. A total of 7,000 Stude baker employes will be losing their jobs just a few days be fore the Christmas holidays. Asked how Studebaker can compete in the U.S. market with Canadian cars, Guthrie cited the higher retail costs of cars in Canada caused partly by an 11 per cent excise tax in Can ada which won't have to he paid on cars shipped to this country. He also pointed to the 8 per cent differential in the dollar ex change and said there is a much better opportunity of cut ting costs in Hamilton. Asked what effect the move would have on Studebaker's dealer setup in the United States, Byers A. Burlingame, president of the company, said "our dealers should be pleased to know that the company will at least stay in business." He said they will sell the cars made in Canada. ASKS IDENTIFICATION WASHINGTON (UPI I - The . Treasury D e p. 4 r t m e n t an nounced Monday that it is re questing banks and other finan cial institutions o ask savings bonds owners for their taxpay er identification numbers when they collect interest on bonds. Exiles Claim Soviet Ships, Subs Used For Smuggling MIAMI (UPI i Cuban exiles told the Organization of Ameri can States Monday that Soviet submarines and ships are smuggling aims, narcotics, counterfeit money and subver sive agents into Latin America from Cuba. Tlie exiles said their intelli gence reports showed that pro Castro agents in 'Mexico also were being supplied by air planes flying from an American-built air base in Pinar Del Rio Province to the Yucatan Peninsula. One key supply base for the subversive agents in Mexico, they said, was a ranch belong ing to former Mexican Presi dent Laiaro Cardenas to which clandestine flights are regular ly made. Cardenas is a strong supporter of the Castro regime. The report was made by the Cuban Revolutionary Council, an exile organization headed by former Cuban Premier Manuel A. De Varona. It was sent to OAS council Chairman Juan A. Lavalle of Peru and OAS Ven- FREE DELIVERY SERVICE ON ANY ITEM IN THE STORE Phone Ui Your Nttdi Deliveries Each Day at 11:00 - 2:00 - 4:00 HERALD AM) NEWS. Klamath She Bscuh&i mTstxgir -flhiwtfiy Cxem Sly END OP AN ERA Studebaker Corp., which began making covered wagons 103 years ago and which has been in the car business for 61 years, announced Monday that it is ending its U.S. car production. The firm said it is moving all car production to its Canadian plant in Hamilton, Ont. This advertisement from the UPI files shows the "new" 1 9 1 8 Studebaker. Studebaker Decision Leaves City, Workers Facing Economic Crisis EDITOR'S NOTE: An eco nomic crisis confronts thou sands of workers at the Stu debaker plant In South Bend, Ind., today. 15 days before Christmas. Here is a I PI team report on the disloca tion. David Smother of IT!, Chicago. Robert Page of UPI Indianapolis, and South Bend newsmen ciaperated in the production. A I'PI Team Report SOUTH BEND. Ind. IUPI It's 15 days before Christmas but South Bend isn't waiting for Santa Claus. This prosperous city along the northern edge of Indiana is waiting for the word at the gates cf the Studebaker Corp. how many more hours, how many more days before the auto production line stops. South Bend isn't afraid. But it is sad. A tradition of great-grandfather to grandfather to father to son passed Monday with the. word from New York that the. Studebaker Corp. was through making cars in South Bend. Studebaker men showed up for work today as usual, slush ing through moist snow outside the gates of the 291-acre plant ezuelan investigating commit tee Chairman Rodollo A. Wide mann of Argentina. Widemann's committee is in vestigating a charge by Romu lo Betancourt of Venezuela that three tons of Cuban arms which were found in his coun try recently were smuggled in by Castro to aid Communist terrorists. The exile report said more than 100 Soviet fishing trawlers and an unspecified number of i submarines were being used to export the Communist subver sion from Cuba. In addition, Castro was also employing "more than ISO fast fishing boats'' and an unspeci fied number of airplanes. LEO'S ... AHSCO nsco CADET' II NEW ANSCO REGENT Slide Projector Manual or remote control projection of all 2 x 2 slides. Simple "pop-up" editing. Brilliant 500-watt A BIG ANSCO VALUE at $79.95 illumination. Falls, Oregon Tuesday, December It, 1963 eurjSfudebaker jSedan on the west side of South Bend. Some thought it would be their last day, seme their last week. .Moving Company Tie final word had to come from President Byers A. Bur lingame, who Monday in New York announced he was taking its automotive production busi ness out of South Bend into the seaways port of Hamilton, Ont. He didn't say when. That word may come at various news conferences scheduled in South Bend today, or in New York, where the Studebaker ex ecutives were gathered. To South Bend, a pleasant city of 135.000, w hich has boast ed of tlie highest per capita in come in tlie state of Indiana, the time and the minute seemed of secondary impor tance. South Benders knew it might happen. It was just hard to believe when k hit. According to the United Auto Workers, that meant 7.000 hour ly workers out of jobs and thousands of families without a regular paycheck. Tlie Cham ber of Commerce put the num ber of jobs at stake at about 4,000. Stunning Effect Nobody denied the shutdown at Studebaker would have a stnnnin? effect on life in South Bend. Conservative estimates ran at $380,000 to be lost in weekly paychecks. The word from Studebaker was. to all appearances, rushed. It had been scheduled for a New ,York news confer ence Wednesday. Press leaks forced Burlingame to this an nouncement: That Studebaker would dis continue auto assembly at South Bend and shift its pri mary auto base to Hamilton. Studebaker would stay very much in business with the di versified industries which have provided much of its profit since its automotive business went sour after the great year of the Lark in 1!)59. Ideal Location DOWNTOWN Business or Office Inquire GUN STORE GIFTS for CHRISTMAS Smart new Codet II 20 picc outfit in fitted ugqoge typi case. Black and white or col or .. . everything you need for snapshots in doors or out! Complete Outfit only 13.75 CAMERA OUTFIT Built-in PREVIEW SCREEN PAGE-J Studebaker "regrets the necessity os curtailing South Bend operations, but the eco nomics of the operation permit no other course." On automobile row in De troit, that meant a shift in the basic statistics. Now there were only foui automotive giants producing in the U.S. General Motors, Ford. Chrysler and American Motors. U also was the end of an American story which began 111 years ago when the broth ers Studebaker came to this simple agreement : "I, Pete Studebaker, agree to sell all the wagons my brother Clem can make." Booming Business Actually, the Studebaker boys had been making wagons in South Bend lor 11 years before the 1863 agreement was signed. In the Civil War, and as the West was opened, Pete sold all the w agons Cl m could make. And in 1902 U.? Studebakers had a ncw-Iangled e'.?ctric car on the road and in 1904 the lat est thing a "gas buggy." Studebaker was a proud name on the roads through the first decades of the automotive age. Ijj MAKE IT aB Chest or We're overstocked on the larger sized Amana Freezers and we want to move them before year-end inventory. We've really flashed prices to get ACTION! Terrific buy on America's nost wanted freezers! I iliiiiiilff Deepfreeie I nomi mutt. I t V All M.l OMIT If BUY ON Jury Indicts 7 Persons In Explosion INDIANAPOLIS (UPI I - A grand jury indicted the state fire marshal, tlie Indianapolis fire chief and five other per sons Monday and charged that "utter disregard of duty by many" contributed to a Hallo ween explosion here that killed 72 persons. "No one seemed willing to carefully inspect the premises and protect the safety and wel fare of the some 3.000.000 peo ple who have entered the build ing during the past 10 years." the grand jury said in an ac companying 21 page report. It called (or a special session of the legislature "to complete ly overhaul" the department of the state fire marshal, "or abolish it entirely." The strongly worded report and the indictments came after a weeks-long investigation into tlie blast that shook the Indiana State Fairgrounds Coliseum on Oct. 31 as an ice show was nearing its climax. More than 300 persons were injured. The seven persons indicted were scheduled for arraignment Dec. 20. Fire Marshal Ira Anderson, fi9, was indicted on two counts of failure to inspect tlie Coli seum. Meivin Ross, head of the In dianapolis Coliseum Corp., which holds a contract to op erate the Coliseum was indicted on an involuntary manslaughter charge. The same charge was returned against Floyd James, commissary manager. 0MSJ XMAS SHOPPING SAYING CENTER BUY YOUR TOYS WHOLESALE OPEN TILL 9 P.M FRIDAYS For Your Shopping Convenience RANCH WHOLESALE SUPPLY BUY AT THE "K" MERRILL-LAKE VIEW JUNCT. - I'G GIFT FOR Upriqht Home Freezer! Adlai Asks UNITED NATIONS, NY. i UPI i U.S. Ambassador AHai E. Stevenson, Security Council president for December, ap pealed today for a quick windup to the council's latest debate on Portuguese African territories. Stevenson said he hoped the 11-nation body could move to an immediate vote on an Afri can resolution expected to be presented today on tlie Portu guese colonies of Angola. Mo zambique and Portuguese Guinea. Newest Polaris Successfully Tested CAPE KENNEDY (UP! The Navy sucessfully tested its new longer range Polaris missile Monday night and now is looking ahead to an even newer version with a mightier punch. Tlie Polaris "A-3" shot into tlie darkness trailing a brilliant columni of smoke and flame fiom a land pad. Its nose cone streaked through the atmos phere about 1,500 miles away in the Atlantic. All wrapped up and ready to please! (NO EXTRA COST) This is "The Greatest American Whiskey"... it's a light, superb-tasting Kentucky Straight Bourbon. Yellowstone is made by the special "mellow-mash" process and bot tled at 86 proof. And with very good reason it's known as the "No-Bite" Bourbon. . 0LENM0RE DISTILLERIES CO.. LOUISVILLE-OWENSBORO, KY. "Where Perfection of Product is Tradition" THE FAMILY - ZfiD7 OVERSTOCKED Big, Convenient Amana Upright HOLDS 791 Pounds of Frozen Foods! Deep Freeze America's Favorite Chest Freezer HOLDS 865 Founds of Frozen Foods! Several Other Large Models at Similar Reductions Vern Owens' UN To Wind The 32-nation African bloc's campaign for self-determination in the territories was discussed on two fronts Monday. Capt. Henrique Galvao, tlie Portu guese rebel leader who hijacked tlie ocean liner Santa Maria two years ago, appeared before the U.N. trusteeship committee to denounce Portuguese domestic and colonial policies. Portugal's foreign minister, Alberto Franco Nogueira, was appearing at the same time be fore tlie Security Council, w here The 2,880-mile range rocket designed to be filed from sub merged nuclear submarines is expected to become combat ready next August. Although at least a dozen more test flights of the "A-3" arc planned, the Navy is study ing plans for an advanced model of the Polaris called the "B-3". It would have the same range as the "A-3" but would carry a bigger payload. The slim Polaris missiles now AN Model AU 23 by Amana Model AC-25 Up Portuguese Debate he defended his country's poli cies and invited U.N. Secretary General Thant to visit Portu guese Africa and investigate conditions for himself. Galvao. 68, risked arrest by flying to the United Stales Mon day from Brazil to testify be fore tlie U.N. committee. The Portuguese Embassy in Wash ington asked the Slate Depart ment to arrest and extradite him on piracy and murder charges connected with the Santa Maria hijacking. He has can deliver nuclear tips equal to about 1 million tons of TNT. Payload estimales for the pro posed "B-3" rockets were not available. The United Stales has five submarines on patrol in the At lantic carrying 1,375-mile range "A-l" missiles and five more subs armed with "A-2" models with a 1.725-mile range. BELL'S HARDWARE TEFLON FINISHED by You really can't believe it till you've seen it! Nolhlni sticks, even burned -on foods! You nivir scour to clean. 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