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The People's voice. [volume] (Helena, Mont.) 1939-1969, July 20, 1956, Image 1

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Vol. XVII—No. 3
$3.00 Per Year
Tree Enterprise Flouri;
Cheap, Abundant Pow
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"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.
"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.
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,
president, Montana State AFL-CIO.
It seems that during the signa
ture campaign 445 Fergus county
people signed the
titled initiative petition.
Bill De
Lewistown, business agent of
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
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
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
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
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
"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)
many young
stead of 445 signatures, the initia
tive received only 233 signers in
Fergus, to meet its eight per cent
minimum to qualify the county, had
to have a total of 537 valid signa
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
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
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
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
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.
The press generally 1 has under
played the work of the committee,
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
Brownell Reverses Earlier Position MONT
h r
Justice Department How taking
Demo Position On Dixon-Yates
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
' I
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
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
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
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
In replying to the Lewis & Clark
county bureau's demand that he quit,
Neil declined, stating;
"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."
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
a. m.

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