LIIKASY
u or 0
EUGENE. ORE .
The Bobson Outlook
Economist Foresees
Another Good Year
Ahead For Nation
By Roger W. Babson
1. GENERAL BUSINESS.
1954 saw a drop in Ihe average Physical Volume of Business of only,
5 from the record ypar 1953. 1955 could see a rise of about the
same amount. Certainly, the direction of business until mid-1955
will be upward.
2. BUSINESSMEN WILL WAKE UP. During 1954 many busi
X t a better record
Roger W. Babon
and coal Industries will be in a
in the doldrums.
5. PRIVATE CONSTRUCTION. I forecast that home building
and general construction will be somewhat lower in 1955 than in
1954, but this important industry should still operate at high levels
next year.
6. PUBLIC CONSTRUCTION. I forecast that public construc
tion will increase during 1955. This should mean a rise in -the out
put of cement.
7. AGRICULTURAL EQUIPMENT. This industry has been
suffering from a decline in demand, but should now improve. Government-sponsored
planting curtailment and crop loans have re.
duced free supplies, and may make for higher agricultural prices
later in 1955. i
8. ARMAMENT INDUSTRY. forecast that industrial prices
The armament industry will still in 55 w,n sh0w little change
be one of the main floors be-
neath the economy. The electrical
and chemical industries will
move at a rate close to that of
1954.
9. OTHER INDUSTRIES. I am
somewhat optimistic on clothing,
aircraft manufacturing, air-line
transportation, office equipment,
electricity output, petroleum pro
duction, natural gas, and shoes. I
am also fairly bullish on rubber,
paper, electrical equipment, cer
tain types of building, and non
ferrous metals.
10. WEATHER CONDITIONS.
It is foolish for me to attempt to
forecast rains, droughts, frosts,
etc., for any special section. How
ever, taking the nation as a
whole, I look for better weather
in 1955.
11. RETAIL SALES. I forecast
that the outlook for retail sales
is encouraging, at least through
the first half of 1955.
12. PROFITS. Stiffening com.
petition is chipping away at the
profit margin. Return on invest
ed capital is in a long-term down
trend. The first few years after
World War II were the golden
years for the novice in business
and for the inefficient. Those days
are gone for awhile.
13. SELECTIVITY. Higher
labor and other costs, plus in
tensified competition, will con
tinue during 1955. I forecast a
high degree of selectivity in the
effect of this trend on individual
activities and companies. Victory
will be for the nimble and for
the strong!
14. DIVIDENDS. Recent high
expenditures for new plant and
machinery have left some con
cerns with very high deprecia
tion charges. As new capital
commitments are cut arid de
preciation remains high, cash in
flow could expand. Such com
panies should be able to pay out
in dividends a higher percentage
of earnings in 1955 than in recent
years, notwithstanding a moder
ate profits shrinkage.
15. INVENTORIES. Inventor
ies have been permitted to run
down during 1954. As total busi
ness expands, there will be a
tendency to replace reduced
stocks, especially during the first
half of 1955. Total manufactur
ers' inventories, however, may
build up more rapidly than total
business inventories. I forecast
that total wholesale and total
retail inventories will show little
change from 1954 levels.
16. PRICES OF MANUFAC
TURED GOODS. Even with the
expected pickup in demand, I see
no sharp markup in inductrial
prices next year. Over-all sup
plies are generally ample. Hence,
A Look at
As a recapitulation of the in
teresting and important events
which have occurred in Morrow
county during 1954 the Gazette
Times has gone back'through the
files for the year. They are not
taken in order of importance,
merely in the order that they
were reported during the year.
The county got under way in
earnest in January with its tax
reappraisal program.
The new lone gymnasium, cafe
torium and swimming pool were
dedicated January 12.
Turn-A-Lum location for new
school gets consideration of the
school board.
Mercury dropped to -15 degrees
in sections of the county on Janu
ary 20.
New Heppner Lions club organ
ized January 21.
Discontinuance of Sunday mail
Despite wails from some quarters,
ness men rediscovered the meaning of the word
"competition," Sales will continue to be made
only with real effort in most lines.
3. CONSUMPTION OUTLOOK. Consumption
in a number of lines has been proceeding at a
i.inrp raniri rate than has nroduction. I forecast
in early 1955 for both steel and
auiomonnes.
4. TEXTILE INDUSTRY. Textile industry
operates at extremely low levels throughout most
of 1951. Coal and railroad equipment also exert
ed a strong downpull. I forecast that the textile
recovery phase after their long stay
from recent levels.
17. FOOD PRICES. Food prices
may firm later in 1955. The
strong move into Government
crop loans this year has made
free supplies of most agricultural
items less burdensome. I forecast
that new advertising programs
by canners and other great food
distributors will help farmers,
stock raisers, and fruit growers.
18. CONSUMER INCOME.
Consumer income will hold at
satisfactory levels. Most goods
should move readily into con
suming channels.
19. LIVING COSTS. I forecast
that during 1955 living costs will
show little over-all change from
present levels. There may be
some firming during " the first
half, but the late months friay
again witness a minor softening.
20. RENTS, ETC. I forecast
rental expenses may edge some
what higher; clothing costs
should be steady to moderately
higher. There is small chance
that food expenses can be greatly
reduced. . , . ., ... ... -
21. MONEY SUPPLIES. I fore
cast that money supplies. will be
ample for all legitimate business
needs during 1955. With little
likelihood of business getting out
of hand on the upside, credit eas
ing is more likely than credit
curtailment in 1955.
22. INFLATION. Fears, or
perhaps hopes, of an inflationary
boom should be buried. Barring
outbreak of war, our productive
capacity is sufficiently large to
meet all demands for goods. I
forecast that no runaway infla
tion is probable, even if the
money managers increase the
supply of money or ease credit.
23. INTEREST RATES. Until
the Treasury finds a way to bal
ance the budget, hold business at
high levels and unemployment at
a minimum, I forecast little like
lihood of higher interest rates.
24. BOND PRICES. With the
possible exception of tax-free
bonds, I see no reason for in
creased bond prices in 1955. I
forecast on increase in the issu
ance of tax-free revenue bonds.
25. STOCK PRICES. After so
sharp a rise, the market could
have a reaction; but I am fore
casting no crash in 1955 such as
we had in 1929. In fact, the
situation changed for the better
October 11, 1954.
26. WAGES. I forecast that
the wage trend in organized in
dustry will continue to move
higher' at least in the first half of
1955. During the first half year,
when business will be improving,
the labor chieftains will also be
quick to resort to the strike wea-
(Continued on page 6)
1954 - Local Happenings of the Year as Recorded in the
service into and out of Heppner
started January 31.
J. W. "Kit" Carson killed Feb
ruary 2 when his spray plane
crashed into Heppner hillside in
heavy fog.
Both lone and Heppner basket
ball teams wind up successful
seasons and prepare for state
tournament trip.
Nine persons or firms received
special recognition awards at the
Chamber of commerce annual
banquet.
Tum-A-Lum school site wins
voter approval by nine vote mar
gine. Ione's basketball team looses in
tournament finals to Harrisburg,
but brings riome second place
trophy. Heppner high school re
ceived 7th place award.
Jucreen Dobberke, exchange
i German newsman, spends week
Copies 10 cents
ONE OF THE OUTSTANDING holiday decoration scenes in Heppner
of Mr. and Mrs. Harry DuvalL just south of the court house. The three wise men on the camels
and all the figures in the manger were constructed and painted my Mr. and Mrs. Ernio Winchester.
A home decorating contest was sponsored this year by the Heppner Lions club, but Mr. and Mrs.
Euvalll asked that their home display be omitted from the judging. (Photo by Tom Wilson)
Christmas Home
Decoration Contest
Winners Named
The judging committee of the
Lions club this morning an
nounced the winners of the club
sponsored Christmas home deco
ration contest. First prize of a
picnic kit was awarded to Henry
Rauch for the display at his
home on South Gilmore street.
Second prize of a set of Christ
mas lights went to the W. C. Rose-
walls and third place award an
electric clock was won by the
display at the Walter Edger (Alta
Brown) home. Both of the latter
homes are on North Court street.
Given special mention, though
not in the competition for any
of the prizes at their own request
was the excellent decoration at
the home of Mr. and Mrs. Harry
Duvall which is pictured above.
Committee members emphasized
that their judging job was no
easy one as many more Heppner
residents than in the past years
had decorated their homes. The
competition lb? tile second and
third prizes was very stiff, they
said. The club also expressed
its appreciation for the interest
shown "in the contest and revealed ,
plans to continue the contest in f
the near future.
Special Sledding
Areas to be Set
Aside for Children
The youth activities commit
ipp of the chamber of commerce
reported Monday that two special
sledding areas have been .select
ed in Heppner for use by local
youngsters if and when it snows
this winter.
The committee had been asked
to pick one or more areas that
could be either roped or block
aded of off to protect the child
ren from traffic. The two hills
selected were cemetery hill for
the use of the older children, and
west Baltimore street for the
younger crowd.
Local police have offered to
cooperate in keeping traffic away
from the immediate areas, and
probably Hill street, which leads
to cemetery hill from the east
will have to be sanded heavily
to allow residents access to their
homes.
All arrangements are, however,
dependent on Heppner getting
enough snow sometime this win
ter to give the kids something to
slide on.
o
Tom Michos of Portland was
visiting in Heppner the first of the
week.
on the Gazette Times.
Ron Currin, Heppner high
school student and F. F. A. mem
ber, named Oregon state fanner.
Miss Grace Miller of Boardman,
chosen queen of the 1954 fair and
rodeo.
After much delay and squabbl
ing, a school crosswalk sign was
finally placed over the crosswalk
on north Main street.
Federal aid funds approved for
new Pioneer Memorial hospital
addition.
Heppner high school's baseball
team wins its first game in years.
Morrow County Grain Growers
j announce plans for construction
of $175,000 dock and storage fa
cilities on the Columbia rivei.
Announcement made that
'county school tax be reduced
' about three mills for 1954-55.
Heppner, Oregon,
Maybe Not a White
Christmas, But a
Clean One Anyway!
Tommy, the very small son of
Mr. and Mrs. Howard Cleve
land, was helping his mother
wrap Christmas presents one
day last week. The scene was
in the utility room ol their
home on Willow creek. Just
when nearly all of the packages
were nicely wrapped and tied,
his mother was called to the
phone.
When she returned the auto
matic washer was washing
merrily away and in it were
all the newly wrapped gifts.
Vernon Munkers
New ASC Chairman
Vernon Munkers, Lexington
will serve as chairman of the
county A$!3 committee for 1955,
it was?Eels(Ni this week. He and
the other official were nomi
nated and elected ; December 20
by delegates of the community
committees: -f5 ' '" "
Also named were Ed Skoubo,
Boardman, vice chairman; Alvin
Bunch, Heppner, regular member
Robert Rietmann, lone first al
ternate and W. B. Gottachalk,
Lexington, second alternate.
The local ASC office also an
nounced that farmers should sign
up now for their 1955 ACP pro
gram. Signups can be made at
any time during the year, but
funds are allocated on a first
come basis.
First 1955 Baby to
Receive Many Prizes
Again this year, merchants of
Heppner are offering a big list
of prizes to the first baby to be
born in Pioneer Memorial hospi
tal in 1955. The prize list in
cludes many uwful items such as
baby food, bottle warmers, baby
clothes and even a substantial
discount on the hospital bill.
A complete list of prizes are
announced in a special advertise
ment appearing on page four of
this issue of the Gazette Times.
Mr. and Mrs. Jack Marshall
had as their guests over the
Christmas weekend, her parents,
Mr. and Mrs. Cheley Boyer of
Ontario and his parents, Mr. and
Mrs. Vic Marshall of Nyssa.
Mr. and Mrs. Willard Blake
have as their guest during the
holidays, her mother, Mrs. David
Wilson of Corvallis.
Mrs. Venice Stiles of Portland
is here to spend the Christmas
and New Years holidays with her
mother, Mrs Josie Jones.
Heppner Lumber Company
strike lasts one week.
Mrs. Stephen Thompson resigns
as chairman of Heppner school
board.
One man is killed and 10 per
sons injured in series of accidents
early in June.
Laxton McMurray, formerly of
lone, donates $3,00o to Pioneer
hospital for X Ray equipment.
Flying objects seen by three
local men.
Heavy early June rainfall
brightens crop prospects.
$325,000 school bond vote asked
for construction on T-A-L site.
t, ........ rv.i. TtJ anH Itoalth
association gives new A-nay unu
to hospital.
Additional wheat acreage cut
announced.
County school superintendent;
alette
Thursday, December 30,
is this nativity scene at theliome
New Owners to
lake Over Heppner
Lumber Friday
Arrangements were completed
in Portland Tuesday for the trans,
fer of the Heppner Lumber Com
pany to its new owners, Maurice
Hitchcock and Dant & Russell,
Inc., it was revealed today by
Paul Koenig, manager under the
new ownership. The transfer will
take place effective December 31.
The sale of the large property,
which included the Heppner mill
and all timber holdings of the
company in this area, was an
nounced nearly two months ago
by the" former owners Orville
Smith and P. W. Mahoney of
Heppner, and members of the
Kraft family who held sizeable
interest in the operation.
Koenig said Wednesday that
the changeover is expected to go
very smoothly and that few, jl
any, changes in operation were
plannnd for the near future.. The
lant 'will be 'closed dowrT Friday
for inventory purposes, he said.
Smith and Mahoney have held
their interests in the North Fork
Timber company mill at Monu
ment and also bought out the
Kraft interests in the Heppner
Lumber Company plant at El
gin. The Monument mill has
been supplying the Heppner mill
with rough sawed lumber during
recent years and this same ar
rangement is expected to con
tinue under the new ownership,
it was said.
A change of name was also an
nounced for the plant which will
be known as Heppner Pine Mills,
Inc.
Hitchcock, who has a large
lumber mill at White Swan,
Wash., is not expected to live in
Heppner, but Koenig moved here
with his family early in Decem
ber. o
4-H Leader Training
Meet Set January 4
4-H Clothing leaders will have
an opportunity to receive help
with requirements, demonstra
tions and special problems at a
training meeting January 4 at the
club house in Heppner, starting at
10:30 a. m. Any leader or pros
pective leader in the projects,
Just So GirJ, Sew It's Fun, Charm
ingly Yours, Teen-Age Miss and
Clothes for Fun and Sun is in
vited to attend this meeting.
Further information ' may be
obtained from Beverly Bradshaw,
acting county extension agent,
home economics.
Leslie Grant resigns to go into
Insurance business In Arlington.
County tax reduction announ
ced. Voters turn down school bond
proposal.
Construction started on new
hospital wing.
Mrs. Elizabeth Dix passes away
July 12 in Portland.
18th accident on Heppnor's
"Deadman's corner" takes life of
Bill Wickland, Arlington, July 17.
Five others are injured.
Kickoff dance opens Fair and
rodeo activities.
State withholds school support
money from Heppner district un
til expansion plans materialize.
Jack C. Flug takes over as new
county school superintendent.
Third school site election OKs
Prock-Devin location.
4 -Vvt ' SJ
1954
Heppner Man Found
Dead After Two-Day
Air and Ground Search
Following an air and ground
search which lasted nearly two
days, Moses E. Duran, Heppner
butcher, was found dead of a
heart attack Tuesday noon. He
was sitting in his Jeep which had
been stopped in a field about
three miles north of Lexington
Hermiston road on the Glenn
Campbell ram.ii near Butter
Creek Junction. On the ground
about 60 feet in front of the car
was a dead coyote which he had
shot just prior to his attack.
Search for Duran was started
Monday when it was revealed
that he had not returned from
a Sunday bird hunting trip into
the Umatilla area. He had last
been seen about noon Sunday in
Umatilla .where he had talked
to a friend and said that he had
to get home.
Sheriff C. J. D. Bauman and
relatives and friends searched
much of the north end of the
county Monday afternoon and
one plane piloted, by Loyd Bur
kenbine of Heppner aided. Tues
day three more planes joined in
the search and the Jeep was first
located by Howard W. Arthur of
Pendleton, Umatilla county dep
uty sheriff and area head for air
Early Week Cold
Spell Misses Most
Of Morrow County
A gentle- but constant rain
which started falling in Heppner
Wednesday evening and contin
ued throughout most of the night,
dropped .37 inch of moisture here.
Leonard Gilliam, weather record
er said today. It more than
equalled all that has fallen dur
ing the entire month.
Heppner got the lions share.
however, as the Crum ranch north
of lone measured only .10 inch.
A falling barometer today gave
indication that another storm was
on the way and light rain was
Falling here at noon.
While many nearby sections of
the state were shivering early
this week with temperatures as
low as 22 degrees below zero,
Heppner and much of Morrow
county was basking in compara
tively mild weather The coldest
recorded at the Heppner weather
station was 1G above early Tues
day morning.
Though the temperature was
fairlv L'ood, most farmers aren't
very happy about the rainfall for
the month as less than one-halt
inch has fallen during December.
The snowfall which started on
Christmas afternoon whitened
Ihe ground in much of the high
er areas of the county but added
very little to the moisture for
the year.
-o
Special Christmas
Tree Pickup Planned
Herman Green, operator of the
Heppner garbage service, an
nounced this week that he will
make special pickup of Christmas
trees in Heppner if residents will
ueave them at the curb in front
of houses.
Green asked that the trees be
placed on curbs starting next
Monday and said that pickups
will be made during the week.
o
Mr. and Mrs. William Scrivner
and children of Heppner and Mr.
and Mrs. Robert Scrivner and
daughter Diane of Spokane were
Christmas guests of Mr. and Mrs.
Lee Scrivner.
Fair and Rodeo week draws big
crowds.
Local $290,000 school bond Is
sue approved by voters.
President Eisenhower visits Mc
Nary dam for dedication cere
monies. Herbert Ekstrom of I0ne named
Grassman of the year.
Straw ballot shows big ma
jority of Heppner residents favor
construction of city park.
Heppner city council settles
problem of the ownership of stray
flock of chickens by ordering po
lice to liquidate the poultry.
Chamber of commerce bond
sale program for lighting of
Heppner rodeo field gets under
way.
Rhea creek road oiling started.
Delbert Emmert named county
Cattleman of the year.
71st Year. Number 42
search. Orville Cutsforth, flying
his own plane, spotted the parked
car shortly afterward and both
men gave the alarm.
Mr. Duran was found sitting
in his Jeep with the windshield
up and his shotgun aimed at the
dead coyote. Tracks indicated
that he had chased the animal
for some dsltance before getting
ose enough to shoot it.
Services Friday
Moses El wood Duran was born
December 19, 1901 at Heppner
and had lived his entire life here
with the exception of eight years
spent with the railroad at Uma
tilla He had been a butcher in
recent years having been em
ployed at the Central Meat Mar
ket. He was a member of the
Lexington Odd Fellows lodge and
an associate member of the Hepp
ner I. O. O. F. lodge. Services will
be held at the Heppner Christian
church on Friday, December 31,
at 2 p. m. with Rev. Earl L. So
ward officiating. Burial will be
in the Lexington cemetery with
Creswick and Seuell Mortuary in
charge of arrangements.
Surviving are his mother, Mrs.
Adella Duran; a brother, William
A.; and a sister Mrs. Mary Mc
Murtry, all of Heppner; six nlc.
ces and three nephews. Another
brother died in 1909.
Local residents who aided in
the air search Tuesday included
C. R. and Donald McElligott, Or-,
ville Cutsforth and Loyd Burken
bine, pilots; Archie Munkers, C.
C. Carmichael and Pete Mc
Murtry observers. Several others
aided in the ground search,
MC6G Ships First
Wheat From New
River Facility
The first shipment of Morrow
county grain to be made from
the new Morrow County Grain
Growers elevator and dock vacil
ity at Paterson ferry was made
this morning when a 25,000 bus
hel barge load of wheat was
loaded out at the plant.
The barge load of C. C. C. wheat
which is a part of the 1953 hold
over crop stored in MCGG eleva
tors. It was moved to Portland
for transshipment by Inland Na
vigation company.
The 25,000 bushel shipment is
a part of the 100,000 bushels of
carryover wheat which will be
shipped out of Grain Growers
elevators to fill current orders.
The remainder will go by rail, it
was announced by Al Lamb,
j manager of the co-op.
At the present time the Mor
. row County Grain Growers have
' approximately 1,820,0000 bushels
j of wheat and barley stored in
I their various elevators in the
county, and of this amount, near
ly one-half million bushels re
, main of the 1953 crop,
j The new MCGG elevator and
1 dock on the Columbia river was
: completed last fall and contains
' storage space for 170,000 bushels
of grain. It is located adjacent to
' the Paterson ferry landing.
GRANGE INSTALLATION
SET AT RHEA CREEK
Rhea Creek grange will be host
to the Lexington and Willows
granges Sunday, January 2 at 2
p. m. for the Installation of offi
cers. A social hour and refreshments
will follow the meeting.
News
Paul Brown named county Con
servation man of the year.
Sale of the Heppner Lumber
Company to Maurice Hitchcock
and Dant & Russell announced on
October 28.
Rodeo field lighting fund drive
goes over the top.
General election places several
new faces in local offices.
Opening of Cutsforth Forest
Park formerly called Herren creek
meadow, is announced. .
lone residents get TV reception.
Kenneth Smouse, lone, named
president of Oregon Wheat Lea
gue. Heppner voters approve small
tax levy for construction of new
city park.
Jack H. Bedford named new
president of Heppner-Morrow
county chamber of commerce.