$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-
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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.
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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.
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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.
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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.
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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
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in the Atlantic.
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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
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The slim Polaris missiles now
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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.
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been convicted in absentia In
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Reports from Washington in
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