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Governor Mark O. Hatfield's Administration

Biennial Report, 1963

Source: A BIENNIAL REPORT OF THE EXECUTIVE DEPARTMENT 1961-1963 (SOME NOTES ON STEWARDSHIP)

To members of the Fifty-second Legislative Assembly:

As an addendum to my message to the Fifty-first Legislative Assembly there was made available a brief report on major activities of some of the agencies which comprise the Executive Branch. In the hope that such a record is of continuing value, the following is presented.

Of necessity, this report is brief and covers only highlights of activity during the period covered. Additional details can be found in departmental biennial reports, and I commend them to you.

GENERAL

Appointments

During the past biennium it has been my responsibility to appoint more than 400 individuals to positions of trust in government.

In addition to department heads and members of state boards and commissions, appointments have included county officers, district attorneys, judicial offices and others which the Governor is required to make, many of which are not usually thought of as coming under his authority.

Executive Branch Coordination

Although the Fifty-first Legislative Assembly took some steps toward overcoming present time-consuming methods of coordinating agency activity, creation of additional boards and commissions by that Assembly resulted in an increase in the problems of coordination.

My practice of meeting with agency heads in monthly session has thus been continued. This has aided the task of coordination, but more and more staff time is necessary to provide liaison with boards and commissions.

Reorganization

The Fiftieth Legislative Assembly directed that the Governor submit on appropriate occasions his recommendations for reorganization of the Executive Branch. The plan which I submitted to the Fifty-first Assembly was based upon recommendation of a distinguished committee and was clearly in the interest of better administration. That plan received support from many quarters, but failure of substantial legislative action continued the need for the action recommended. I have resubmitted some of these recommendations and urge action by the Fifty-second Legislative Assembly.

Budget --- Capital Construction

The budget has again been made available more than a month prior to convening of the Legislature. For the second time, a six-year capital construction budget places the projects for the coming biennium in perspective.

The Capital Construction document also gives brief details of projects which have been completed during the past two years. Further highlighting is in order.

Oregon’s position as a leader in the field of medicine was enhanced though completion of a 9-story medical research building on the University of Oregon Medical School campus. Other facilities added to higher education physical plants include a 5-story classroom, laboratory and office building at Portland State College; and addition to the Physics-Chemistry Building at Oregon State; and additions to the Science Building, University of Oregon. In addition to the research building on the Medical School Campus, two units were completed to house a Crippled Children’s Division and a Hearing and Speech Center.

Major Board of Control projects completed have included the industrial-vocational unit at the correctional Institution, a school building addition and inmate cottage at MacLaren School for Boys, a Vocational Unit and Girls Dormitory at the Deaf School, and an addition to the Gymnasium at Hillcrest.

Completion of the Salem Armory-Auditorium and the Portland Armory No. 1 have facilitated National Guard activities in those areas as well as affording space for public uses. State office buildings were constructed in Eugene and Pendleton and the Labor and Industries Building on the Capitol Mall was completed and placed in use. With the addition of other capitol construction completed or underway during the biennium, total expenditures for this purpose are estimated at nearly $33 million.

TRANSPORTATION AND PUBLIC SAFETY

Highways

During the past two years the Highway Department awarded a record number of contracts, totaling $131,000,000, to cover work in all areas of the state. While greatest publicity is given to interstate Freeway activity, it should be noted that 150 miles of non-interstate roads were completed in 1962 alone. Oregon continues as a leader in the highway field.

Motor Vehicles

An increase in vehicle registration and driver licensing has resulted in acceleration of activity in the Department of Motor Vehicles. However, development of new procedures has not only offset the attendant increase in operational costs, but has effected a saving of one-half million dollars while providing better service to the public. The time lapse between license application and issuance has been substantially reduced. Migratory worker transport vehicle inspection has minimized accident frequency. Additional and improved field offices have increasingly met the needs of the public.

State Police

The seaside disturbance demonstrated the ability of the Department of state police to respond to emergency situations. In this case, order was restored within five hours following mobilization. New buildings at Albany, Ontario and The Dalles afford better service, and new stations at Corvallis and Harmiston have shortened the patrol gap in those areas. Department sponsorship of city and county police training schools has been well received.

Aeronautics

Improvement of public aviation facilities has been accelerated during the past two years. The Board of Aeronautics has completed new airports at John Day, Prospect, and Seaside, as well as acquiring and improving the Wasco airport. In addition, the Board has installed lighting equipment to facilitate night use of airports at Aurora, Gold Beach, Hood River, John Day, Joseph, Pendleton Heliport, Scappoose and Seaside. Federal aid funds were allocated though the Board for airport improvement at Arlington, Baker, Bend, Eugene, Hillsboro, Hood River, Joseph, Klamath Falls, La Grande, Lakeview, Newport, North Bend, Ontario, Pendleton, Prineville, Redmond, Roseburg, Salem, and Sutherlin. Other federal aid projects have been approved. Administrative reorganization has resulted in greater service to municipalities and individuals.

Civil Defense

Working with the U. S. Army Corps of Engineers, the Civil Defense Agency ahs developed the national fallout shelter concept on Oregon through completion of a state-wide building survey, location of 974,723 spaces for civilian protection, the procuring of consent of building owners for fallout use of facilities, the posting of premises with appropriate signs, and receiving necessary foodstuffs and other supplies. In addition, the Civil Defense Agency has trained large number of public and private personnel in emergency techniques. Three additional state warning points in Oregon have been added to the national warning system, making a total of 10 such facilities. The October 12, 1962 storm tested the ability of the Civil Defense Agency to cope with natural disaster. The agency was named to coordinate public assistance necessary following the storm and assist in repair of storm damage. Another $950,000 has been applied for. Many applications are still being processed. The combination of this storm and the Cuban incident has occasioned increased interest in Civil Defense Agency activities.

National Guard

Military Department management improvement and reduction o personnel has resulted in savings amounting to approximately $125,000, at the same time increasing departmental efficiency. This agency’s total budget request for the 1963-1965 biennium is $684,000 less than the actual operating budget for the period 1957-1959. The National Guard Reserve cadre has been increased to assure an adequate corps of trained personnel in the event of mobilization. The military code adopted by the Fifty-first Legislative Assembly has provided a generally sound operational base. The Air National Guard continues to perform around-the-clock runway alert at the Portland International Airport under operational control of the Air Defense Command. This performance has earned the Air National Guard the highest peacetime unit award given by the U. SW. Air Force. The Seaside incident and October 12 storm revealed certain communications inadequacies, and these have been overcome.

Veterans’ Affairs

Increased bonding authority for the Department of Veterans’ Affairs resulted in a record Program of $63,000,000 in loans to some 6,000 veterans in 1961. Nearly 4,000 loans were made in 1962, totaling $41 million. During this two-year period, the loan program earned more than $2.5 million. The record of delinquencies was the lowest in history, at a rate of only 92 per 26,000 loans.

Tax Commission

The State Tax Commission is now keeping current the hearings and decisions on property tax appeals. A new program, started though agreement with the Internal Revenue Service, permits the Commission to examine adjustments in federal tax returns, thus eliminating one possible tax loophole. Through June, 1962, the Commission had collected more than $800,000 from this program. Though Commission efforts, county officials are being encouraged to adopt modern budgetary and data processing methods.

REGULATORY ACTIVITIES

Public Utilities

The Department of Motor Vehicles, and the Public Utility Commissioner have jointly staffed many field offices, thereby reducing cost and facilitating services provided to the motoring public. Reorganization of central P.U.C. offices and employee rotation has provided advancement opportunities for career personnel. The Public Utility Commissioner today has 16 fewer employees than were employed in 1959. Wise administration of the Utility Certificate Act adopted by the 1961 Legislature has halted economic warfare between utilities.

Real Estate

The Real Estate Department has carried out an intensive educational program for Oregon licensees. With the assistance of the University of Oregon, some 3,000 students in 21 areas of the state have attended real estate seminars. Upon completion of this course, each student is presented a diploma and any doing the real estate honor society, Rho Epsilon Kappa. Other states are expected to follow this program, which is calculated to assure increased public service by real estate licensees.

Corporation Department

Representatives of the Corporation Department have worked with the Oregon State Bar in the review of corporation law, with the goal of modernization and improvement. This group has also worked toward envelopment of a revised Limited Partnership Act. Legislation will be proposed based upon these studies. Two new savings and loan associations were chartered, and increased activity in the investment area was reelected in issuers’ registrations, and through increased numbers of salesmen’s and dealers’ licenses.

Banking

To afford additional public protection, the Banking Department has recommended that state chartered banks adopt such safeguards as Excess Bank Employee Dishonesty Blanket Bond Insurance, which most not carry; installation of a “Direct Verification of Accounts’ program as an extra audit measure of protection; and the formulation of emergency preparedness measures to assure continuity of operation in the event of enemy attack. During the two-year period one state bank was organized and nine branches were put in operation. Two state credit unions were formed and three dissolved. One industrial loan company commenced business, and 18 licenses were issued under the Oregon Consumer Finance Act. One pawnbroker was licensed and three discontinued operation.

Liquor Control

While sales have increased and enforcement problems have become increasingly difficult, the Liquor Control Commission budget for 1963-1965 represents a reduction in personnel with corresponding savings without sacrifice of service to the public. Self-service stores have been well accepted, and during the biennium three additional outlets of this type were opened --- in Salem, Medford and Portland. All state-operated stores are gradually being changed to complete cash register operation, eliminating handwriting off sales slips. New inventory controls have reduced the necessity of frequent shipments. The identification card program has been of material assistance in curtailing unlawful sales to minors.

Racing

During the past two years, parimutuel wagering on horse races has increased from $44 million to $53 million, with an attendant increase in state revenues. An improved system of handling chemical samples was developed and is now in force. Additional security personnel have helped curb undesirable activities.

PUBLIC HEALTH

The birth rate in Oregon dropped to 20,6 per 1,000 population during 1961, and final figures for 1962 will undoubtedly show a further downward trend. Although the total number of deaths has increased in recent years, the rate per 1,000 population has remained relatively constant at nine. Diseases of early life generally have continued on a downward trend and those of later life upward. Of the 16,885 deaths in 1961, diseases of the heart, cancer, strokes, and accidents lead in frequency.

The new Medical Examiner system has been established in 35 counties, only Multnomah retaining its coroner. Following a salary adjustment schedule approved by the Civil Service Commission, the position of State Medical Investigator will be filled, effective in May, 1963.

Uses of radiation sources continue to expand in industry, the professions and in institutions. Regulations to safeguard the public against misuse have been developed.

A state-wide program for the early identification and treatment of phenylketonuria has been developed to prevent sever mental retardation. A training program for local health workers was held in cooperation with Fairview Home.

The Board of Health staff continues to test about 130,000 children each year for hearing defects, referring more than 5,000 for further medical study and correction. Testing of pre-school children has been initiated to provide earlier detection, and a film on this program has created national interest.

During this period McMinnville and Warm Springs became the 21st and 22nd communities to fluoridate their water supplies. Studies continue to prove the beneficial effects of fluoridation.

Nineteen full-scale disease detection studies have been completed. These developed preventative measures against the spread of infectious hepatitis, bacillary dysentery, encephalitis, rabies, salmonellas and many other diseases, including Q fever, trichinosis, tularemia and leprosy. The public health laboratory perform over 420,000 tests.

To assist in the control of tuberculosis, which disabled 946 and killed 120 in Oregon during the past two years, the Board of Health X-rays about 80,000 people each year and administers skin tests to another 80,000. In addition, during the past two years, the Board and local health departments made over 84,000 nursing visits and provided 800 indigent patients with anti-tuberculosis drugs.

The Board of Health and Sanitary Authority continued to work vigorously toward the goal of clean streams, with particular attention to the Willamette River. One example of the beneficial results of these efforts in the $5.6 million Salem sewer bond issue. Abatement of lower McKenzie River pollution was accomplished and the odor nuisance along the Newport ocean front was alleviated.

The first phase of the Tri-County sewerage system plan for Portland and its surveys was completed. Supervision of Oregon’s 509 public-owned water supplies continues to maintain a record of no water-borne disease outbreaks. Due to continued surveillance, no disease problems involved the 360 public swimming pools under license.

Through the cooperation of local government agencies, open refuse burning near population centers has been greatly reduced. Over a million Oregonians now have available sanitary refuse disposal facilities.

Equipment valued in excess of $1 million has bee installed by major industry to rid the air of harmful pollutants.

Under the federal Hill-Burton program, hospital projects in 10 communities have received grants totaling $3,318,067, to provide 567 additional hospital beds and required patient facilities. Nursing homes in nine areas received similar grants totaling $1,129,094, thereby providing an additional 294 nursing home beds. Two county public health centers are projected at a cost of $14,500,000. A Portland metropolitan rural planning council is demonstrating the advantages of coordinated planning for hospital services. Similar councils have been formed in Lane, Klamath, and Marion-Polk counties. Twelve others are proposed.

Departmental reorganization has resulted in better coordination of services and simplification of work methods, with resultant improvements of service to the public.

EDUCATION

Higher Education

The year 1962 marked two noteworthy anniversaries in the field of higher education --- the 100th anniversary of the signing of the Land Grant College Act by President Abraham Lincoln, and the 75th anniversary of the establishment of the University of Oregon Medical School. Science, research and dormitory facilities were completed as outlined earlier. Soon to be constructed are an Oceanography Building at Oregon State University and a paleoecology laboratory at the University of Oregon, both financed though federal grants. Construction is beginning at Oregon State on a Radiation Center, jointly financed though state and federal funds. Scientists at Oregon State University are building a major electronic computer under an initial gram of $200,000 from the National Science Foundation. This computer which will be completed with an additional federal grant, will sere research needs throughout Oregon and will be housed in a building partially financed through a 1961 Legislative appropriation. Announcement has just been made of a $959,590 grant to construct a Marine Sciences Laboratory as a part of the oceanographic research facilities of OSU at Newport, largely as a result of representations by the Executive Department.

The use of educational television has been of assistance to more than 1,700 students at Oregon State University and Oregon College of Education; and courses in General Biology, General Psychology and Philosophy are offered though this media to students at the University of Oregon, Portland State College, Oregon State University and Oregon College of Education.

As directed by the 1961 Legislature, a new graduate school of social work has bee established at Portland State College, offering for the first time a full graduate program in this field. Additional and revised curricula offerings have furthered higher educational opportunities. In December, 1962, Oregon Technical Institute was accredited as a specialized institution by the Northwest Association of Secondary and Higher Schools.

During the past two years the System of Higher Education was received more than $15,000,000 in gifts and grants, 68 per cent of this amount for research. With a total of $283,267 in state funds, matching grants in the amount of $3,212,000 have been obtained.

Department of Education

The launching of The Oregon Program --- a design for the improvement of education at all levels --- with the aid of a 43,500,000 Ford Foundation grant has initiated a massive, state-wide, inter-institutional effort, involving the Department of Education, the State System of Higher Education and 25 local school systems. This program should facilitate need changed in the educational enterprise.

The Department of Education, under a contract with the federal government, is developing a plan for a national system of regional research centers.

Nine counties and 143 school districts now provide complete educational programs in grades 1 though 12.

A new state law governing teach certification has gone into effect and a Certification Review Committee established, with corresponding upgrading of the preparation of public school teachers.

Supervision of the Community College program is the responsibility of a new division. Community Colleges are now providing increased educational opportunities at the community level for high school graduates, at a comparatively low cost to the State General Fund.

A Division of Education Development has been established to achieve better coordination among public and private educational institutions in advancing education generally.

Marked improvement in the state-wide curricula for elementary and secondary schools in t he areas of science, mathematics, and modern foreign language has been achieved. The Governor’s Education Improvement Advisory Commission is function to bring about improved long-range planning.

ECONOMIC DEVELOPMENT

Activities of the Department of Planning and Development have continued to aid the program of economic diversification which seeks to lessen dependence upon seasonal and geographically located industry.

At the end of 1962 the Departments files contained names of 156 companies which have requested information on locating a facility in Oregon. Feasibility and investment opportunity studies have been added on such employment opportunities as meat packing, potato processing, aluminum fabrication, research support, and mining.

A state inventors council has been organized to assist both inventors and manufactures looking for new products. A payroll development program was lunched, based on a state-wide survey of products purchased by Oregon Industry which might be manufactured here but which are now imported. Steps were taken to expand defense and space-oriented research in Oregon, resulting in four-fold increase in the activity during the past two years.

The Boardman “Space Age Industrial Park” project has been carried to semi-final stages. This 100,000-acre site, which the Boeing Company has agreed to lease for aerospace testing, research and development work, involves acquisition of land from private owners, the Navy and the Department of the Interior. Acquisition of private and public domain lands has been completed. A flight corridor to the east has been secured. The Navy’s practice bombing facilities have been relocated on the eastern half of the range. Negotiations are going forward to resolve differences with the Navy on land values and the U. S. Corps of Engineers on use of water front lands.

A half-hour, full-color motion picture on Oregon was completed and in the past nine months has been viewed by more than 100,000 persons. Some 500 former residents of Oregon have been enlisted as an outside sales force thorough formation of “Homesick Oregonian Clubs” in Los Angeles, Chicago, St. Louis, New York, and Philadelphia. One state-wide and two regional economic studies have been instituted.

Oregon’s economy in 1962 afforded work opportunity to more people than ever before in history. Only in June did total employment fall below that of the same month in a previous year. The June exception occurred because the peak of strawberry harvesting was delayed. Annual average employment was up a little over 10,000 in 1962 from 1961’s pace.

Non-farm wage and salary employment was at a record level throughout 1962. The index, which is adjusted for seasonal variations, peaked early and late in 1962 with the highest index ever attained coming in the last two months of the year. 1962’s ending augurs well for a prosperous 1963.

Oregon’s economy has been changing. Its dependence on the major seasonal industries has bee lessening. The increase in jobs has been found in the industries which provide year-round work. In 1950, from the low monthly for non-farm wage and salary employment which was January, employed workers had increased by 29.4 % in the high month, August. In 1962 the rest from the low to the high month was only 11.8 per cent. The non-seasonal base of the state’s employment is expanding while the seasonal industries (logging and sawmills, agriculture, and canning and preserving) are holding fairly even or actually contracting.

Preliminary estimates of annual average employment in 1962 show that wood products had 100 more employees during the year than in 1961 and food products has 100 less. The overall 2,100 gain in manufacturing resulted from worker increases in machinery, transportation equipment, and textiles. The larges percentage gain of any industry, 13 per cent, was registered by electrical machinery. While considerably smaller numerically than the increases in other industries, electrical machinery or electronics represents a bright hope for the state’s further development.

Thirteen hundred new jobs were filled in veneer and plywood which almost made upon for the 1,400 jobs lost in logging and sawmills compared to 1961.

A little over 85 per cent of the 1961-to-1962 increase of 14,300 persons in non-farm wage and salary employment was to be found in the non-manufacturing industries. Only one industry, transportation, showed a loss in employment and that of only 200. Mining, construction, transportation, communications, and public utilities, trade, finance, service, and government all registered additional employees the past year. The service enterprises required 3,900 more workers, trade 3,000, government and education 2,200, and construction 1,700 for the larger increases.

Contract construction employment, hampered by a mid-summer labor dispute, was accelerated by the Columbus Day storm which provided a multitude of repair and clean-up job opportunities.

Unemployed worker in Oregon averaged 7,100 fewer during 1962 than in 1961. The rate of unemployment fell from 6.2 per cent to 5.2 per cent which meant one fewer person out of 100 was seeking a job in 1962. The level of unemployment is a better indicator than employment as an indication of how well the economy is providing jobs for the state’s labor force. By this measure during the past year Oregon improved substantially over 1961’s record and was better off than the nation as a whole whose 1962 unemployment rate was about 6 per cent.

Tourism took a stronger hold on its position as Oregon’s third largest industry during the past two years --- each year setting a new record in the number of visitors to Oregon. In 1961, there were 7,076,400 visitors, an increase of more than 675,000 over 1960. In 1962, the number jumped by more than two million to a total of 9,255,378 visitors.

Many visitors indicated they were including a trip to the Seattle World’s Fair in their Northwest vacation trip during 1962. Although this shortened the average length of stay in Oregon, the total income from tourism was a healthy increase of $31 million.

The Highway Department constructed a travel information center at the Seattle World’s Fair. More than a million fairgoers visited the center. An Oregon traffic survey showed that 52 per cent of the travelers who had attended the fair had seen the Oregon exhibit.

The State Highway Department conducted an extensive advertising campaign in national magazines, major newspapers and radio and television stations. It answered more than 330,000 direct mail inquiries in 1961 and 1962 and distributed hundreds of thousands of maps and chores highlighting the state’s scenic and recreational attritions. Many were distributed though chambers of commerce, automobile clubs, and the groups interested in tourism; groups with whom the Highway Department Travel Division worked closely in coordinating tourist promotion activities. This program will be continued and expanded in the coming years

The “Welcome Mat” Campaign initiated by the Governor’s Office and enlisting broad private funs support was an additional facto in the 1962 tourist program. It was coordinated with other activities in an intrastate program to welcome tourists and to encourage them to stay longer in Oregon.

SOCIAL SERVICES

Inherent in the activities of the several agencies engaged in publicly-financed social services have wherever possible. Greater emphasis has been placed on rehabilitation measures and other methods whereby less fortunate citizens can resume useful lives.

During the past two years, the Public Welfare Commission has put into effect programs involving five significant changed in the Oregon Public welfare program which were directed by 1961 legislative action. They are: Medical Assistance for the Aged (MAA), which provides financial help with medical care for otherwise self-supporting persons over age 65; Aid to Dependent Children of Unemployed, which provides support to Oregon children when neither work nor unemployment compensation is available to their parents; Foster Care for children who are removed by the court form the come of their parent while receiving Ads; a revised program of Aid to the Blind which assures needy blind persons a minimum living standard of at least $85 per month and permits them to keep a substantial amount of their earnings; the extension of work Relief programs to cities as well as counties; and a Surplus Food program, optional to each county, whereby the Welfare Commission staff certifies those persons of low income and assistance families who are eligible to receive food, and the county distribute this food with partial state reimbursement. At present, 21 counties are taking part in this program, and Multnomah County has instituted a food stamp plan as a part of this activity.

Closer coordination with allied state agencies has resulted from the move of the Commission’s central office to Salem, ad notable savings have accrued in the use of date processing equipment. An aggressive approach to the social rehabilitation of welfare clients has resulted from a program of case classification and planning in two county offices. This involves an analysis of social, economic, and health problems of the family, with concentration of staff effort in those areas where there is potential for employment. The Public Welfare Commission has continued to adhere to the closest budget principle first enunciated by this Administration.

Twenty-two Oregonians attended the White House Conference on Aging during January, 1961. Of these, 17 were official state delegates appointed by the Governor, and five represented national organizations. Following the conference, these delegates presented reports at more than 250 meetings of local groups though the state. The final report of the White House Conference recommended that each state establish a permanent unit on aging. Specific recommendations followed Oregon’s present statutes almost exactly. The council sponsored a series of conferences in carious areas of the state, and plans a state-wide conference in Corvallis in May of this year. Since it is a coordinating agency, the work of the State Council on Aging involved contacts with a wide charity of state, federal, local and private agencies engaged in various social welfare activates, with particular attention to the needs of the general public. This agency performs a continually useful function.

Services to the blind have been effectively increased though departmental reorganization which has enabled an increase in ratio of expenditures for direct service. Cooperative working arrangements between the Commissions for the Blind, the University of Oregon Medical School and the Public Welfare Commission has improved ophthalmic evaluations and surgeries for a increasing number of patients. During the past two years a series of workshops for local volunteers have been held in every county. The Blind Industries’ been held in every county. The Blind Industries’ sales program has been reactivated, and the Division of Industries is close to its goal of self-sustenance. The vocational rehabilitation program has been strengthened. Following a survey of the needs of the blind in Southwestern Oregon, steps have been taken, in cooperation with the Jackson County Court, to establish a branch office, to include rehabilitation facilities and other services, in Medford.

The Board of Parole and Probation continues to visit all inmates in state adult correctional institutions and in county jails who are service sentence of six months or longer. During the past two years, interviews have resulted in the granting of 671 paroles. In addition to parole hearings, case reviews are continually conducted so that all inmates are given maximum consideration to the end that they may be paroled at such time as they indicate a willingness to comply with parole regulations and practice good citizenship. Processing of probation orders of the courts has involved more than 2,400 cases during the past two years. A third area of concern is in the completion of pre-sentence investigations. More than 1,200 investigations were completed. As of December 1, 1962, the board of Parole and Probation had 3,246 parolees or probationers under supervision. To better fulfill the obligation of service to the judiciary, arrangements are being made to establish a regional office in Eugene.

INTERGOVERNMENTAL COOPERATION

Effective liaison with federal government officials has been maintained during the past two years, and cooperative efforts with Oregon’s delegation in Congress have resulted in significant activity in development of river and harbor projects. Personal testimony submitted to committee of Congress has been productive. Major items have been authorization of improvements to harbor facilities at Brookings, Umpqua Bay, Siuslaw Bay, Yaquina Bay and Tillamook Bay; the 40-foot channel project on the Columbia River, and the Rogue River project. In addition, Congress ahs authorized steps to rehabilitate Eastern Oregon range lands managed by the Bureau of Land Management. Additional funds for enhancement of recreation opportunities of federal lands in Oregon have resulted from testimony coordinated by the Governor’s office; and a $900,000 Area Redevelopment Administration grant has been secured to finance construction of Marine Sciences Laboratory, to e operated by Oregon State University at Newport.

Oregon’s bonds with Japan were strengthened in 1962 with formation of the Oregon-Hokkaido Rural Cooperation Society. This marked the culmination, and at the same time the active beginning, f an exchange relationship toward which you Governor has been working with Hokkaido officials and Oregon people since 1960. At the organizational meeting it was pointed out that “people-to-people” programs such as this can help establish lasting international friendships, enhancing the culture and trade of the participants and furthering the cause of world peace.

The selection of Hokkaido seemed appropriate because of our trade with Japan and because the geography of the two states is similar and the history of Hokkaido very much parallels that of Oregon. The purposes of the society are to promote cooperation, friendship and understanding between Japan and the United States, and principally Hokkaido, Japan, and the State of Oregon, and to promote a more abundant life for rural Hokkaido and Oregon, especially among youth and youth groups. The organization will assist Japanese visitors in Oregon and will help coordinate visits to Japan by Oregonians interested in agriculture.

In September, 1961, at the Sixth Conference of Japan-American Mayors and Chamber of Commerce Presidents in Portland, You governor received form Governor Machimura of Hokkaido a beautiful film telling of his country. Oregon reciprocated with a copy of the new film, “Oregon Today”, with Japanese sound track. This film is now being shown throughout Hokkaido.

OUT OF STATE MEETINGS

Date Place Purpose

1961

January 20 Washington D.C. Inauguration

February 6 Boise, Idaho Fisheries Conference

March 19 Vancouver, WA Wildlife Ceremony

March 14-17 Salt Lake City Western Governor’s

Conference

June 7-8 Seattle American Cancer Society

June 23-July 1 Hawaii Governors’ Conference

September 11 Vancouver, WA Address

1962

January 18 Vancouver, WA Fisheries Conference

January 28-29 Helena, Montana Governor’s Funeral

May 26-27 Seattle Oregon Day at World’s Fair

June 29-July 5 Hershey, PA Governors’ Conference

October 26 San Francisco Cuban Briefing

November 9-14 California Vacation

November 17 Columbus, Ohio Accompanied UO Team

December 7-8 Palm Springs Speech

Columbus Day Storm

Reference to individual agency activity in connection with the October 12, 1962 storm fails to indicate the intensity and magnitude of one of the worst tragic disasters which Oregon has suffered during this century. Countless injuries, the loss of 32 lives, and more that $200 million in property damage are alarming statistics, but do not reflect the many acts of heroism and courage and action about the beyond the call of duty on the part of representatives of public and private agencies, as well as individual citizens, The people of the state demonstrated courage, calmness, and neighborliness akin to that displayed by our pioneer ancestors, in the face of calamity. Order was maintained and property protected though alert action of the State Police, units of the Oregon National Guard, and city and county law enforcement groups. The Highway Commission and the Civil Defense Agency efforts to assist in restoration of vital communications and transportation facilities were matched by the efforts of public and private utility companies and their countless workers. Truly, here was vivid demonstration of the ability of effectively meet whatever situations may prevail in time of crisis.

This has been a biennium of advancement along The Oregon Trail. But as has been said “What Is Past Is Prologue”. This record is written that those who come after us may know of our deeds.

Respectfully Submitted,

Mark O. Hatfield

Governor

Oregon Secretary of State • 136 State Capitol • Salem, OR 97310-0722

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