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V, M _'l a • ; *V : tsA î : I anfprl ,1 'Mm ''crT riir|^4j;li)rtP — w PiTWr r r MONTANA'S ONLY STATEWIDE INDEPENDENT NEWSPAPER Vol. XVII—No. 3 HELENA, MONTANA, JULY 20, 1956 $3.00 Per Year o 05 Tree Enterprise Flouri; Cheap, Abundant Pow es On Olsen fia t? & < S: Cr. ' - I "Montana needs only the determined will of its people to* become a great industrial center," Arnold Olsen, Democratic nominee for Governor, told a Sunday picnic crowd at Lake Blaine in Flathead county. "Montana's unmatched power potential can provide the base for the model industrial center of our nation; not an area like the smoke-scarred eastern trial regions, but one with modern clean plants run by electric power. All you have to do is harness that power and industry will continue to come to the Northwest, and will come to Montana if opportunity in the form of cheap electric power beck ons," Olsen said. "The key to progress in any of our industrial states has been the development of cheap electric pow er. We have already dramatically seen what cheap electric power can do in Montana. The Victor Chemi cal Plant in Butte and the Ana conda Aluminum Plant in Columbia Falls are powerful demonstrations of the impact of electric power upon an area. "The source of this power is the Hungry Horse Dam. Key to aluminum production here is the nation's fourth largest concrete dam—Hungry Horse. The cheap, abundant power of Hun gry Horse Dam as a part of Bonne ville Power system made possible the location of Anaconda's plant. MORE LOW-COST POWER NEEDED "These two new industries have al ready meant much to Montana. Other new industries could mean the same in terms of jobs and development, but unfortunately the power demand is greater than the supply. "Several smelters and lumber prod ucts mills were unable to locate in Western Montana because they could not have Hungry Horse power. "I want it clearly understood that I am in no way opposed to private power when private power is trying to discourage public power. not Recheck Shows R-W Initiative Short By Another 212 Names Things are probably popping a bit around Fergus county court house this week as a result of in correct certification of "right-to work" initiative petition signa reports James S. Umber, tures, president, Montana State AFL-CIO. It seems that during the signa ture campaign 445 Fergus county people signed the titled initiative petition. fraudulently Bill De Lewistown, business agent of vine, the building trades, then went on a one-man crusade to enlighten Fergus county people as fact that the initiative would not to the guarantee a single job to any per ; that the initiative's catch-all son title was a fraud designed to entice voters into signing; that, in actual ity, the entire purpose of the ini tiative proposal was to destroy la bor unions in Montana and to raise havoc with long-established satis factory labor-management tions. rela As a result of Devine's activity, 106 of the original signers with drew their names from the peti tions. However, says Umber, this fact did not show up in the totals certified to the office of Secretary of State by the Fergus county clerk and recorder. To the contrary, the clerk's office someone ratched out the word "withdraw al" on the withdrawal petitions and certified all 106 of those signers favoring the initiative. Since all 106 had previously signed the initiative petition, the final result was that Fergus county erroneously showed 212 more signatures than the initiative actually received. In in sc as indus-^-— As a matter of fact, that is almost the same as favoring private power too, for wherever cheap public pow er is present, private power flour ishes. Free enterprise flourishes wherever there is cheap public pow er." "We have a lahger untapped hydro electric potential than any state in the Union. The proposed Paradise Dam near Plains would generate as much electric power as is now being produced by all electric installations in Montana." "A determined populace Can make the dreams of a greater and more prosperous Montana come true," Ol sen concluded. University Fee Increase Condemned By Olsen The evening before the picnic, at a dinner sponsored by the Flathead County Democratic Central Commit tee, Olsen was sharply critical of sub stantially higher fees assessed on students of the Greater University System by the State Board of Edu cation last week—fee increases which both he and Supt. of Public Instruc tion Mary M. Condon voted against at the board meeting. "Unless present trends are versed," Olsen said, men and women in Montana will be forever deprived of any choice of a college education. "The financial problem of the Greater University System is now acute and, if the present methods of dealing with it are followed much (Continued on Page Four) re many young stead of 445 signatures, the initia tive received only 233 signers in Fergus. Fergus, to meet its eight per cent minimum to qualify the county, had to have a total of 537 valid signa tures. On a state-wide basis, the initia tive secured not 5,636 valid signa tures, but 5,424, or only about one fourth of the 21,104 required to place it on the November ballot. Vastly Improved Social Security Bill Passes Despite President's Opposition Despite strenuous Eisenhower Ad ministration opposition, aided and abetted by Senator Byrd (Dixiecrat Va.) the Senate this week voted a 90-0 approval of vast improvements in the Social Security Act of 1935. The measure now goes to Senate House conference committee for rec onciling of somewhat minor differ ences with a similar House bill which was given overwhelming approval 372-31 a year ago. Two of the major improvements in both House and Senate versions are: 1. Lowering the retirement age for women from 65 to 62 with a some what lower schedule of benefits than would be received if a woman waited until age 65 to apply for Social Se curity (80 per cent of full benefit schedule). This is the first down ward revision in eligibility age re quirements since the Social Security Asks $5 Million For Anima! Disease Lab at MSC WASHINGTON, D. C.—Rep. Lee Metcalf (D-Mont.) has introduced a bill authorizing a $5 million animal disease research laboratory at or near Montana State College. Researchers at the laboratory would concentrate on animal diseases im portant in the range states. The facility would supplement re search at the new feleral laboratory, which Secretary of Agriculture Ben son wants to locate at Iowa State Col lege. Metcalf said he was disappointed that Benson had decided against Mon tana as the site for the national lab oratory, as recommended by the Mon tana congressional delegation. Demos To Bank On Power Policy As a Major Issue WASHINGTON, D. C.— (LDNS) — With public power emerging as a key election year issue, the Democratic party will enter its August conven tion armed with a sheaf of platform proposals drawn by a specially se lected committee of resource experts. Generally overlooked by the press, the committee has drawn up a hard hitting report which covers the whole field of resource development. In siders say it is the most specific and vigorous program ever presented on the subject. Its impact on Democratic policy in this increasingly contro versial area may be profoundly im portant. The group, titled the Resources Ad visory Committee, has already quietly submitted its proposals to Paul But ler, national chairman of the party. It is likely that the proposals will go before the entire Democratic National Committee on July 20. Headed by former Interior Secre tary Oscar Chapman, the committee includes Michael W. Straus, formerly Commissioner of Reclamation; Dr. Horace Gray, c'o-author of Monopoly in America and a professor of eco nomics at the University of Illinois, and Jesse L. Maury, mining engineer with the International Pérlite Co. STORY UNDERPLAYED The press generally 1 has under played the work of the committee, but ELECTRICAL WORLD, trade publication of the private power in dustry, sensed the importance of the committee's work, and recently pub Act was enacted more than 20 years ago. The amendment by Sen. Kerr (D-Okla.) to reduce the retirement age for women was approved 86-7 with both Senators Murray and Mans field voting for the amendment. 2. By approval of an amendment by Sen. George (D-Ga.) the Senate wrote into its bill a clause already in House bill to permit totally and permanently disabled people to re ceive Social Security benefits at age 50. It is estimated that beneficiaries will average $75 a month disability benefits. • A third provision incorporated into the bill by adoption of an amendment by Sen. Douglas (D-I1I.) would au thorize the states to make full old age assistance payments to benefici aries who earn up to $50 a month. It would be up to each state whether or not to use this authority. In order to receive the improved 1 HISTORICAL. SOCIETY Brownell Reverses Earlier Position MONT h r i iA Justice Department How taking Demo Position On Dixon-Yates WASHINGTON, D. C.— (CNS)— The same U. S. attorney general who 20 months ago said the Dixon-Yates contract was "perfectly lawful has filed a legal brief stating that the contract was illegal from the start. The same contract that President Eisenhower ordered Atomic Energy Commission to sign has now been labeled "contrary to public policy" by his own attorney general, Herbert Brownell. ' I now The Justice Department filed its brief in the U. S. Claim Court here, July 12. In it, the government replied to a $3% million claim that Dixon Yates interests filed against the U. S. after Eisenhower cancelled the con tract a year ago. Under the Dixon-Yates contract, AEC served as a power broker be tween private firms and Tennessee Valley Authority. To keep from ex panding TVA to meet AEC's power needs, Eisenhower told AEC to buy power from a private firm. To do this, AEC dealt with a new firm organized by Middle South Utili ties (headed by Edgar H. Dixon) and the Southern Company (headed by Eugene A. Yates). This new firm planned to build a $107 million plant with $5 million in risk capital at West Memphis, Ark., then feed the power into TVA's system across the Mis sissippi River. lished a letter from Butler to Lyndon Johnson, Senate Majority Leader, and other key Democrats. It asked their aid in promoting Democratically sponsored resource legislation. Four measures partictilar ly emphasized were the Lehman bill calling for development of Niagara power by the New York State Power Authority, the Morse bill authorizing construction of a federal high dam in Hells Canyon, a bill authorizing the TVA to use accumulated funds for construction of power plants, and the appropriation bill involving loan funds for the rural electric systems spon sored by REA. Likelihood that most of the pro gram will find acceptance lies in the fact that some of the Democratic members of Congress most concerned with natural resources are members of the advisory committee. Among them are Sen. Dennis Chavez of New Mexico, chairman of the Senate Com mittee on Public Works; Sen. James E. Murray of Montana, chairman of the Senate Committee on Interior and Insular Affairs; Sen. Richard L. Neu berger of Oregon, a member of the Senate Interior Committee; Rep. Her bei*t Bonner, chairman of the House Committee on Merchant Marine and Fisheries; Rep. Clair Engle, chairman of the House Committee on Interior and Insular Affairs; and Rep. Grade Pfost, member of the House Interior Committee. Certain other members of Congress (Continued on Page Four) benefits, recipiénts would have to have : One and one-half years of So cial Security coverage in the last three years; five years of coverage in the last ten years, or, coverage for half the time since 1950, or alternatively, for 10 years. To defray increased costs of the improved benefit schedules payments by employers and employees alike would be raised from two per cent to two and one-fourth per cent of employees' gross earnings, January 1, 1957. Self-employed persons would have to pay three and three-eighths per cent of gross earnings. improvements in the act. In the House voting last year, Cong. Metcalf voted for liberalization of retirement provisions of the act. Cong. Fjare followed Administration policy and voted against the lowered retirement age for women, and other Brownell said the contract was il legal in these respects: 1. Adolphe H. Wenzell, a budget bureau consultant who also advised a finance firm interested in building the plant, created a conflict of in terest that made the contract illegal from the start. 2. In 1954, Congress forced AEC to give its House-Senate atomic ener gy committee 30 days' notice before signing a power contract. After U. S. voters elected a Democratic Congress in November, 1954, but before this Congress convened, the Republican dominated committee met and agreed to waive the 30-day waiting period. The committee having acted, AEC signed the contract. When the 84th Congress convened in January, 1955, the new Democrat-led committee re pealed its waiver, claiming that it was illegal since Congress wasn't in ses sion. At the time, Brownell encouraged the waiver. In his brief, however, he says the committee acted illegally when it was under Republican control and took the legally correct view after the Democrats took over. Anthony Lewis, a NEW YORK TIMES reporter, says Brownell's -brief "reads like a Democratic campaign flyer." In the midst of one particularly fur ious attack on the contract, Eisen hower ordered a "complete disclos ure" of events leading up to its sign ing. AEC and the Budget Bureau Collaborated on this and issued a 25 page document. Never once did Wen zell's name appear. Later, Senate investigators found that Wenzell had played a decisive role in the contract, that an early draft of the "complete disclosure" had mentioned Wenzell a dozen times, but that his name was removed before the report was published. Finally, Memphis said it would build its own power plant, rather than take Dixon-Yates power through TVA. President Eisenhower seized on this as an excuse to cancel the con tract and he did so last July. County Farm Bureau President Refuses To Resign Post Ever since Lewis & Clark County Farm Bureau president, Wayne Neil, Canyon Creek, spoke out strongly against the Eisenhower-Benson-Amer ican Farm Bureau policy of "flexing farmers off the lands, a few months back, forces have been at work to remove Neil from his post. His local bureau, Birdseye, last week again affirmed its solidarity be hind Neil's action. Also, at the local bureau meeting of last week, it was brought out that Montana Farm Bu reau President George Diehl of the Helena Valley "had spearheaded the action in which the county board of directors demanded Neil's resigna tion." In replying to the Lewis & Clark county bureau's demand that he quit, Neil declined, stating; yy "To agree to this request of res ignation would also be to agree to the suppression of free speech. It is every United States citizen's privilege and duty to state his views and beliefs upon any subject. If Farm Bureau has become so weak that the expression of a view diver gent to their leaders' beliefs not be tolerated, it is indeed the point of extinction. Were all members of Farm Bureau to follow the example set by some of the present board members of Lewis & Clark County Farm Bureau, it would be impossible to bring up any new policy ideas and some of the old ones might became very stale." can near Railway Clerks To Hold Legislative Meeting, Sunday, August 19 The state legislative committee of the Brotherhood of Railway and Steamship Clerks will hold its sixth bi-ennial meeting in Helena, Sunday, August 19, E. F. English, Havre, mittee chairman, announces. All sessions of the meeting will be held in the conference room of the Placer Hotel, beginning at 9 com a. m.