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About La Grande observer. (La Grande, Or.) 1959-1968 | View Entire Issue (July 7, 1959)
Wall Street Is ' oking For Good Reading In Corporation Reports By ELMER C. WALZER UPI Staff Writer NKW YORK UPI Wall Street is looking (or some excel lent reading in the corporation rciwrts for the second quarter which soon will be making their appearance. These reports will reflect rec ord high production for the nation as a whole which means general business 0erating at its best levels in history. Full recovery from the reces sion of 1957-1958 was accomplish ed earlier this year and new highs have been set since then In many lines. The recovery is continuing although most of the experts look for lha usual sum mer lull. A new spurt ahead is foreseen for the fourth quarter, making 1959 the best year in our economic history. Market men anticipate that the gains to be shown in the second quarter corporation reports will be of sufficient scope to give the stock market new incentives to .speed up its summer rally which has been generating for some time. Higher earnings are changing the price-earnings ratios and making them look more in line with historic levels than they have been. Higher earnings for corpora tions will mean higher earnings lor personal income, and record high dissposuble income. The end isn't in sight. Econo mists for Keystone Funds' $4tkl million Investment management organization predict an eight per cent rise in gross national pro duct at the end of 1959, plus rec ord highs for such items as in dustrial production, corporate profits and dividends, and per- ELGIN BRIEFS Elgin Residents Take Vacations; Visitors Noted ELGIN 'Special) Mr. and Mrs. Charles Barnhart and Hazel Mickey returned bunday from a vacation trip into Canada. They also visit ed Dr. and Mrs. Claude Lewis of Port Orchard, Wash., formerly of Elgin. Mrs. Ethel Poffenburgrr and daughter, Myrna, recently re turned from vacation. They were guests of Mr. and Mrs. Joe Hum mer of Redding, yash. Mr. and Mrs. Arden Evanger of Seattle are parents of a son born June 26. Maternal grandparents are Mr. and Mrs. J. W. McColm of Elgin. Mr. and Mrs. Kenneth Locked and children of Lewiston were weekend guests of her parents, employes, hichcr dividends Mr- ana wrs- l-awrence Ncflrow. for stockholders, and increased I Lawrence and Linda stayed in El expenditures for plant rehabilita tion and expansion. High Personal Income Also there'll be a new record in gross national product which will simmer down to record high Quinn, Douglas Star In Movie At Local Theatre The Hal Wa'lis production, "Last Train From Gun Hill" which opens at the Granada Theatre tomorrow and runs through Saturday will star Kirk Douglas and Anthony Quinn and co-stars Earl Holliman and Carolyn Jones. Another unusual star will be the train that plays the title role.- It is Hollywood's most famous prop, art ancient train, vintage 1870, . which once ran from Rno through Carson City to Virginia City, car rying bullion from the Comstock Lode. The passenger cars were un changed from tho old days. They have seilings of hand-painted oil cloth, seats upholstered in leather and chenille, keroseno lamps and pot bellied stoves. The engines are the oldest in the nation to operate under a regular ICC inspection certificate. The coaches and cars arc the oldest in service. gin for a two week vacation with their (grandparents. Joy Leonard of Portland spent the weekend with her parents, Mr. and Mrs. Wesley Leonard. Mrs. Orville Wayt. Arl-ne and Melvin returned home Thursday after spending three days with relatives in Boise and Middk'ton, Idaho. Mrs. Monte Nedrow and daugh ter Leslie of Eugene arrived at the home of her parents, Mr. and Mrs. Richard Lyman Friday eve ning. She will attend the wedding of her sister, Janet on Saturday. Judge Brownton To Make Report Circuit Judge Wesley Brownton wi'l be in Baker tomorrow to take the report of the Grand Jury there in the absence of Judge Wolfe who is in Multnomah county. Judge Brownton reported that he will be presiding over a case here that will be starting July 14. The case is the Slate of Oregon vs, Smutz. The next jury trial Is scheduled to start July 21. Judge Brownton will be trying several cases in Baker during September and October. The ituning fork was invented by John Shore in 1711. sonal income. Optimism continues because all signs point to a continuation of the upward phase of a normal business cycle that started from a low point in the first quarter of l!ir,n," says Andrew r. rcr rctti, economist for Keystone. He says the upward phase should continue into 1W0. Fcrretti sees the best Christmas season on record in prospect for retailers, liecausc personal in come is cxected to show an after-tax gain of some $25 bil lion. Americans will have about $S billion more discretionary in come than they had last year, he adds. This economist believes con sumer durable goods industries will be the principal beneficiaries of increased spending, with con sumer outlays in this general area up 20 per cent. He says this will include not only furniture, appliances and au tomobiles, but also the myriad new items which are sensitive to changes in discretionary income- travel, summer and winter vaca tions, picnic equipment, boats, swimming pools, and the like. Auto Salts Up Sales of automobiles, which al ready have shown considerable improvement, should be up sub stantially in the first quarter of HHiO, perhaps as much as 30 per cent over the early months of this year, he holds. There are some cross-currents right now as industry had ex pected. There has been some slackening in construction, slower demand and sagging prices for copper, weakness in plywood quo tations. The foregoing are po'nted out by Standard & Poor's which finds the economy just now is produc ing more than it is consuming another way of saying inventories are being built up. Standard says the rate of ac cumulation is no greater than is justified, or even required, by the rising trend of activity, and the ratio of inventories to sales re mains highly conservative. Standard & Poor's estimates that the 1959 gain in corporate profits will be around 30 per cent or more;' in dividends, close to 15 per cent. The firm estimates profits on its index of 425 industrial stocks at $3.85 a share against 1958 s $2.95; for dividends, $2.10 against $1.88. The fourth quarter annual- rate levels should be around $4 for earnings, $2.30 for dividends, it holds. On this basis, the firm notes. the current price-earnings ratio is 15.9 while the yield is 3.4 per cent. "Thus," it adds, "valua tions are not extreme, especially when allowance is made for in flation and the market's basically altered supply-demand balance." It takes pea to make dreams come true tv r lVJLnst of th things w want out of li( run be found only in a peaceful climate. Like then thinin. p'arf dortn't jtiit happen. It, too, has to be planned for. And it. too, cost money. Mnnev' for industrial and military atrength to keep the peace. Money for aeienee and education to help make it lasting. And money saved by individuals to keep our economy itrong and our dollars sound. Every U.S. Savinga Bond you buy makes you and your country financially stronger . . . help strengthen America'! Peace Power helpa make dreama come true. J' it i3l v . . ... . , . ' v .'- '. v v ' . N '. xt ' ..-1,1 ''y"""J Help Strengthen America's Peace Power! Buy "U.S. Savings Bonds J A. VS. O-Ji ..( do.: not pay or thi$ eoYeriuinf. Th. 7Wy P,pnr,m.nt thank., or th,lr, (Htnoti, ' . - aVnaJion, Th. Advtrlmnt tounril tnd LA GRANDE OBSERVER e Observer, La Grande, Ore., Tues., July 7, 1959 Page 8 Market Quotations PORTLAND LIVESTOCK PORTLAND (L'PIi L'SDA ) Livestock: Cattle 300; includes 3 loads fed steers, 2 loads fed cows; trade moderately active: fed steers ful ly steady; cows steady with Mon day's strong to 50c higher close: 19 head load choice 1050 lb. fed steers 29; few lots standard 25 26.50; few utility 23; utility grass cows 17-18 50 ; 2 loads mixed cut ter and utility dry fed cows 17-18 with 10 head at Hi; most tan ners and cutter 14-16. Calves 25; trade active; voulers fully steady with Monday's 1.00 advance; good and choice vealcrs 26-30; utility and standard 20-25. Hogs 400; butchers steady; sows not fully established; couple lots V. S. No. 1 arid 2 butchers 190-220 lbs. 18; mixed 1, 2 and 3 lots 180-235 lbs. 17-17.50; few No. 3 365 lb. butchers and No. 2 160 lbs. 16; sows salable uround II I5 Sheep 400; spring lambs and feeders fully steady; slaughter ewes scarce; couple lots mostly choice high - yielding 88 - 105 lb. spring lambs 21.25-21.50; good 80 100 lbs. 20-20.50; few mixed good and choice 21;. small lot good 80 lbs. shorn spring 18.50; good and choice 75 - 90 lb. feeder lambs 17.50-18: good 60-65 tb. 16; cull to good slaughter ewes 2-4. PORTLAND DAIRY PORTLAND (UPI I Dairy market : Eggs To retailers: Grade AA large, 42-44C doz.; A large, 39-4 lc doz.; A large, 39-41c: AA medium 34-35c; AA small, 26-27c; cartons l-3c additional. Butter To retailers: AA and Grade A prints, 65c lb.; carton, lc higher: B prints, 63c. New York Stocks NEW YORK (UPI Industrial stocks faltered today but railroad issues highballed ahead to assume market leadership. The industrials ran into profit taking after eight straight sessions of advance had carried that aver age to a new all-time high and had added more than $12,600,000, 000 to market values. But the rails saved the day by picking up tho slack. . Despite the selling for profits, the industrial list was generally mixed with some issues managing to ring up fairly sharp gains. Addressograph rose around 3 while gains of around 2 or more appcurcd in Crane, Maytag and Victor Chemical. v Western Maryland. New York Central. Norfolk t Western and Louisville & Nashville all rose around a point or more in the rails. General Motors was firm and active in the autos, where Ford inched ahead and touched a new high. Chrysler, American Motors and Studebaker were easier. Zenith was the weak spot in the electronics where IBM and Ampcx featured on the uoside. Anaconda lost around a point on further weakness in copper prices but aluminum issues were gener ally firm. FRANCE REJECTS PROTEST PARIS UPI '-France Monday rejected Ghana's demand that she abandon her plan to conduct nu clear weapons tests in the Sahara Desert. Authorized sources replied that Sahara is French territory and also questioned Ghana's right to speak for - the other African states. Barrel Thought A Hoax RICHLAND. Wash. ILPH A white mystery barrel purKrtedly containing radioactive waste that washed up on an Oregon beach Saturday may have been a hoax, it appeared today. It was flown to the Hanford Atomic Works Monday night and Atomic Energy Commission per sonnel said the barrel and its markings did not match the con tainers, used officially to dispose of atomic waste materials. A preliminary e x a m i n a tion showed the barrel was a third full, the contents being about three-quarters water a, id one quarter oil. Warnings on the barrel were said to bo "a pretty amateurish job" painted by hand instead of with a stencil. Official waste bar rels also are black, not white, and are filled with cement. Appearance of the barrel on the Port Orford beach forced evacua tion of holiday bathers from the area, but a navy team soon estab lished that' there was no radio activity in the area. Police Cite Man For Running Light Carl W. Austin was cited by the La Grande police department for running-a red light at the inter section 6f Depot St. and Adams Ave. yesterday. Austin was picked up at ap proximately 10:50 p.m. A hearing was set for tomorrow at 3 p.m. and bail set at $5. More than 200 steamship lines have offices in San Francisco. PRISON RIOT Continued From Front Po not a word from the women, not a whimper irom any one of the children. Taken out into the rain freshened air of the dawn, the hostages began talking to the 50 or more newsmen on hand. Fellow guards hugged Malcy and Harris. Convicts Worked Up Malcy eaid the rebels were "real mean the first hour. We hud some problems for awhile. They were emotionally worked up. "But later it got to be like a ball. They would parade up and down, acting like o Dillingcr, real cocky, showing off to each other." "If I had a piece of pipe," Ma lcy said, "we could have taken over." Mrs. Turner said the men were afraid after awhile, "but they didn't want to back down, eith er." "1 don't think they would have done anything Of course, you nev er really know." Missing Justice Of Peace Found GOLD BEACH 'CPU - Wil liam E. Fuller, Gold Beach jus tice of the peace reported missing by his family last week, was lo cated safely Monday in a cabin south of here. Curry county Sheriff It. G. Sa bin said Fuller, who returned home Monday, told him he we,nt to the cabin to "hole up." Last week auditors checking Fuller's accounts after his disap pearance found a discrepancy of $5,900, but a check was later de posited for the full amount. The Curry county district attor ney's office said no charges were pending against Fuller. Sabin said the justice agreed to return to his home. Demo Housing Bill Vetoed By President WASHINGTON UPI i Presi dent Eisenhower vetoed the Dem ocratic housing bill today. He said its sending provisions are exces sive and would do more damage than good. In a message to the Senate, the President culled the bill "extrava gant." 'Much of the spending it author izes is unnecessary," he said. He objected particularly to sending authorizations which he said amounted to a minimum of $2, 200,000,000 as against his budget recommendations of 810 million dollars. The Democrats hail put a $1, .175,41X1,1X10 price tag on their far reaching bill. After listing the defects in the measure, the President called on Congress to enact before adjourn ment a new housing bill along the . lines of his recommendations of last January. There appeared to be NO chance Congress would over-ride the veto. The bill passed the Senate 56-31 and the House 241-177. Both were less than the two-third margin re-'' quired in both chambers to enact vetoed legislation. The rejected bill would have ex panded federally subsidized public housing and launched new federal lending programs to build college classrooms and low-priced rental housing for elderly persons. FATAL FAILURE KAMPALA. Northern Nigeria i UPI i The six wives of a Kara majong cattle herder were jailed here after ganging up on a local witchdoctor and beating him to death because he failed in efforts to restore their husband's virility. Pacific Northwest Nurseries and Florist Shops go First Class with NATURAL GAS "1 mT"i NATURAL OAS provides uniform, healthful heat to plants in many Pacific Northwest home greenhouses such a this one (at right) in the home of Mrs. Ralph Gibson, Boise, Idaho.' "Clean, constant, draft-free warmth is of the greatest im. portance in the propagation and growth of delicate plant,", says Mrs. Gibson. "I find natural gas the perfect fuel for my greenhouse." FORREST AVERILL, shown above with his son Allen, in their large commercial nursery at Snohomish, Washington, prefers cont Tollable, constantly uniform, always-clean Natural Gas heat to the four other fuels he has used during his 45 years as a professional nurseryman. l SJT 1y II V'T4F - "X V. k ' I " 9 t . isK;.:J.Jii Jul CHOICE ORCHIDS require precisely controlled care. Here, Carl B. Bernson, owner of Glenrose Greenhoitses, Spokane, in spects beautiful Cattleya (Clementine Goldfarb, Princess Marg aret Crowborough, Mount Royal and Monterey) and Cypripe dium (Cyp. Maudiae Var. Magnificum) orchids. Natural gas heat is used throughout Glenrose Greenhouses because of itj purity and perfect controllability. SHINING CLEAN ornamental leaf plants, African vioIcU blooming with health that's the kind ,of indoor beauty every gardener wants, and the kind clean, pure, uniform natural gas heat helps you to have. Above, Mrs. Roy C. Mitchell enjoys her decorative house-plant garden in her Spokane all-gas home. An advertisement of PACIFIC NORTHWEST PIPELINE CORPORATION To put natural gat to wort for you coll the got compony (hot serves the area in which you f,ve. If natural gas is nor yet available in your area, call your propone dealer. i