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Heppner, Oregon, Thursday, January 2, 1958
74th Year, Number 43
Economist Foresees
"So-So" Year Ahead
For Business, Industry
BUSINESS AND FINANCIAL FORECAST FOR 1958
By Roger W. Babson
Next to the Russian situation. President Eisenhower's condi
ition will be of supreme importance. What its influence unon Rus
sia will be, nobody knows. It
business. I believe that for some
maKing important policies and, much to his disappointment his
recommendations have been largely ignored. The major effect of
the president's condition will be oolitical. Those close to the ores-
ident, for both friendship and
ms recovery both in health and in memory. Others in charge of
the Republican party, anxious about his possible incapacitation
or death, would like to see him resign and drop out of the picture
in order to give vice-president Nixon a good buildup in the hope
of re-electing the Republican party again in 1960
tor evident reasons, the Demo
crats are hoping that vice-presi
(lent Nixon will not have an op
portunity to function as president
before the coming election. There
fore, President Eisenhower's con
dition could greatly influence the
political situation during the next
lew years. This would cause un
certainty and retard large cor
porate expansion programs as
well as consumer buying. .
I cannot believe that Russia
wants World War III; in fact, I
am confident that Russia will go
to some lengths to avoid World
War III. In case of any retalia
tion by us, Russia would suffer
great losses. Moreover, if Russia
has any hope of conquering our
country she certainly wishes to
preserve our cities, industries,
and other valuable assets. Rus
sia has land enough now; it is
our industries which Russia
wants. This also applies to Eng
land and Western Europe as well
as the United States. Therefore
my forecasts for 1958 are as fol
lows; 1 The present cold war will
be intensified during 1958. This
will increase fear of war, which
could greatly affect retail sales.
2 Russian policy will be aim
ed at securing control of the
United States, the countries of
Western Europe, and the Middle
East by infiltration.
3 The cold war costs the
United State billions of dollars
annually. This can be paid for
only through increased taxes or
inflation, or by the adoption of
the Hoover Commission's recom
mendations for radical economy.
4 Profits will be further
squeezed during 1958, as a res
ult of higher costs and pressure
for lower pricest
5 Competition at all levels
will increase 'during 1958.
6 Only more advertising by
both manufacturers and retailers
will enable them to keep up their
present gross volume during 1958.
7 Failures will increase in
1958. These will apply mostly to
small concerns, but some of the
big companies in the Dow-Jones
Averages may collapse.
8 Predicting a lower total
volume of business for 1958, com
pared with 1957, I forecast a
moderately lower trend, on av
erage, for wholesale commodity
prices. Expect a gradual decrease
in the cost of living during 1958.
9 Wise labor leaders will hes
itate to fight for higher wages,
but will try for shorter hours,
pensions, and other "fringes."
10 European countries will
have less to spend for American
goods, and foreign trade will de
cline in 1958 compared with 1957.
MONEY OUTLOOK
11 Money will continue to
be "tight" during 1958 for new
borrowers who have not estab
lished a satisfactory line of cred
it. 12 Owing to declining de
mands for funds, interest rates
will decline in 1958.
13 Concerns with large num
bers of employees will receive
first consideration both by banks
and by the government.
14 For fear of World War III,
and due to declining business,
many plans for expansion of
plants will be postponed.
15 Money rates may be "fix
ed" during 1958 by an economic
dictator.
16 Lower money rates will
make it easier to sell long term
bonds during 1958.
17 The supply of non-taxable
state municipal, turnpike and
other "Authority" bonds will in
crease during 1958.
18 I forecast higher prices
for many corporation bonds.
19 investors will continue,
during 1958, to switch from stocks
to attractive bond issues; fear
of war will rule all markets.
20 Bankers will fear that the
government as a part of the cold
warwill appoint a dictator to
direct the policies of all national
banks, the leading stock exchan
ges, and investment dealers.
LABOR OUTLOOK
21 There will be a general
fear that the government as a
part of the cold war will fix
will probably not affect general
time our president has not been
political reasons, are hoping for
ROGER W. BABSON
wages in many industries and
prevent further increases during
1958.
22 The revelations brought
about by the investigation of the
Teamsters Union may lead to im
portant new labor legislation.
23 The Taft-Hartley law will
not be repealed in 1958, and may
he made more severe. Much, how
ever will depend upon President
Eisenhower s physical and men
tal condition.
24 Congressional attempt will
be made to eliminate the present
exemption of labor unions from
anti-monopoly laws.
25 1958 will be a sad year
for labor leaders. 1 forecast that
there will be an increase of un
employment during 1958.
26 I forecast that with the
possible exception of the auto
industry there will be no national
strikes during 1958.
27 I forecast that automation
will slowly increase during 1958.
28 If wages should be fixed
as part of the cold-war program,
retail prices will also be fixed.
29 All workers, especially of
fice workers will be more effic
ient in 1958. It will be more dif
ficult for the next group of col
lege graduates to get good pos
itions at high wages.
30 For the past few years
labor has been sitting in the driv
er's seat. Many industrialists and
political leaders have feared that
the country is headed for a soc
ialist or labor government. A
cheerful sign now is that such
fears may, temporarily at least,
be forgotten. The American work
ing man is himself becoming dis-1
gusted with too powerful labor
leaders. This should be good news
to all honest employers.
OUTLOOK FOR REAL ESTATE
31 Land adjoining cities and
towns will increase in value dur
ing 1958. This especially applies
to small farms.
32 Large commercial farms
will continue to prosper during
1958, but the small farmer will
continue to suffer if dependent
on farming.
33 Under an economic dic
tator, farmers would receive no
Increased price supports. If farm
prices are fixed, they will be at
lower levels.
34 Large cities may contin
ue to lose in population. Large
city real estate will sell for less,
for fear of Russian missiles.
35 The growth of suburbs
will continue, although many
houses now occupied by well
paid executives will be forced on
the market as their owners lose
their present high salaried po
sitions. 36 Construction activity in
many communities will decline.
Older houses will come on the
market.
37 In many sections of the
country there will be a greater
demand for co-operative modern
apartments than for single hous
es although old apartment hous
es will sell for less. More young
people and old people will insist
upon modern . convenience and
upon locations not absolutely de
pendent on automobiles.
38 Well-located woodlands
will continue to increase in price.
This certainly applies to pine
wood tracts, especially in the
South.
Continued on Fsge 6
County Livestock
Growers Slate
Annual Meeting
Arrangements were completed
this week for the annual meet
ing of the Morrow County Live
stock Growers association which
will be held in Heppner on Fri
day and Saturday, January 10
and 11.
A program of interest to the
general public as well as stock
growers has been arranged, and
a new feature, which is expected
to attract much interest, is the
inclusion of a "Bull Day" on the
Friday program.
Main speaker at the Saturday
night banquet which will be held
at the fair pavilion, will be Rob
ert J. Steward, director of the
state department of agriculture.
Another Saturday feature will be
a debate on "Do we want a beef
commission?" which will be led
by Ted Hyde, chairman of the
beef commission committee and
a Umatilla county feed lot op
erator.
A round table discussion will
be held Friday on losses occuring
from the new livestock diseases
The new "Bull Day," instituted
this year, is expected to draw
much interest among stock
raisers. Interested growers are
invited to bring their bulls ti the
new corrals at the fair grounds
by 11 a. m. Friday and the after
noon will be used for buying,
selling or trading.
The program committee has
scheduled a social hour at 5 p.m.
Saturday to be held at the Elks
Temple and this will be followed
by the annual banquet at 6:30
at the fair pavilion.
o
Panel on Juvenile
Problems Slated
For P-TA Meeting
A panel discussion of juvenile
problems will be a high point of
Interest at the Heppner P-TA
meeting Wednesday night, Jan.
9, it was announced this week.
The group has been discussing
the subject for six weeks and will
give it report xo the P-TA nd its
recommendations. The subjects
include smoking, drinking, driv
ing, activities, and allowances.
Members of the panel will be:
adults, William Labhart, mod
erator, Vic Kreimeyer, Mrs. Cres-
ton Robinson, Re. Lester Boulden,
Mrs. William Labhart and Gordon
Pratt. Student panel members
the Ed Groshens, Bob Mahoney,
Doug Gribble, Peggy Applegate
and Susie McQuarrie. The first
three students named attended
a recent code conduct meeting
in Salem
Mill Closes Down,
Logging Continues
Heppner Pine Mills shut down
Friday, December 20 for its an
nual closure and will reopen on
February 3, manager Paul Koe-
nlg has announced.
Logging operations will con
tinue as long as weather con
ditions permit, Koenig said, and
normal maintenance will be done
during the shutdown period.
WEATHER
The Heppner weather station
reports:
Hi Low Prec.
Tuesday 46 37
Wednesday 54 43
Thursday 56 35
Friday 44 32
Saturday 49 39
Sunday 55 29 -
Monday 42 25
Rainfall for the week .28; for
December 2.28; for the year 17.85
inches.
Important
What happened in Morrow
county during 1957? Here is a
recap of the major events of the
year, not in the order of their
importance but in chronllogical
order.
Jack Angel installed chamber
of comerce president.
W. C. Collins sworn In as new
mayor of Heppner.
Temperature drops to 5 below
Jan. 17 and more than foot of
snow falls during the next week.
Jan. 30 sees end of 18 day cold
spell with 15 degree temper
atures. Robert Abrams appointed Mor
row county district attorney.
Robert Ferrell assistant man
ager of the Heppner branch of
the First National Bank named
manager of the Moro branch.
lone Legion basketball team
named host team for AAU play
AGRICULTURAL OUTLOOK SEES PRICES
HOLDING ABOUT THE SAME FOR 1958
This is the time of the year
when farmers and those persons
depending on agriculture for a
livelihood, thoughts' turn to the
outlook and opportunities for the
new year ahead, says N. C. Ander
son, Morrow county agent. While
many conditions in this changing
world can alter the best plans
on what lies ahead, much re
search has gone into the studies
affecting the outlook for 1958.
Recently the National Agricult
ural Outlook Conference was held
at which time several USDA ana
lysts summarized the agricultural
outloik for 1958 this way: "As
of now, our best judgment is that
in 1958:
(1) farmers will get about the
same average prices as in 1957;
(2) agricultural output will re
main high, and could well set
a new record, depending upon
weather;
.- (3) further increases in prod
uction expenses may largely off
set any rise in gross farm income,
leaving farm operators' net rea
lized income from farming
about the same as in 1957.
(4) with increasing income
from non-farm sources, principal
ly wages and salaries from off
farm employment, and with de
creasing numbers of persons on
Many Students Home
From Colleges For
Christmas Holidays
Many young people attending
schools of higher education are
In Heppner for the Christmas and
New Year's holidays. Included in
the group are: Jim Hayes, son
of Mr. and Mrs. J. J. Hayes;
Otto (Skip) Ruhl, son of Mr.
and Mrs. L. E. Ruhl; Meridlth
Thomson, daughter of Mr, Mrs.
James G. Thomson; Shirley and
Dick Kononen, daughter and son
of Mrs. Clarence Cox; Janet
Wright, daughter of Mr. and Mrs.
Walter Wright; Jay Sumner, son
of Mr. and Mrs. J. C. Sumner;
all from Oregon State College at
Corvallls.
From the University of Oregon
at Eugene are Mary Jo and Alice
Faye Stewart, daughters of Mr.
and 'Mrs. Joe Stewart;- and Lace
Tibbies, son of Dr. and Mrs. L. D.
Tibbies.
Bob Hare, brother of Mrs. Stan
ley Holm, came from Michigan
State, Lansing Mich.
Robert Stephens of Hardman
attends Oregon Technical Insti
tute at Klamath Falls,
From Northwest School of Com
merce at Portland are Barbara
Warren, daughter of Mr. and Mrs.
C. A. Warren; Vic Groshens, son
of Mr. and Mrs. Victor Groshens;
Marilyn Pettyjohn, daughter of
Mr. and Mrs. Ellis Pettyjohn.
Bill Brinda, son of Mr. and Mrs.
Wm. J. Brinda, and Jean Marie
Graham, daughter of Mr. and Mrs.
ern Oregon College of Education
Claude Graham, came from East
at LaGrande.
Lowell Turner, son of Mrs. Ernie
Winchester, attends Willamette
University at Salem.
James Monahan, Son of Mr. and
Mrs James Monahan, attends
Portland University.
Also here for the holidays are
Miss Edith Morris, daughter of
Mr. and Mrs. Edgar Morris, who
is employed at the State Office
Building in Salem; and Ronald
Reid, son of Mrs. Ruth Reid, who
is with the U. S. Army at Fort
Ord, Calif.
Most of the students will re
turn to their schools on January
5th. Entering Oregon State Col
lege at this time will be Fran
ces Slocum and Maureen Groves
Miss Groves has been ill and is
now able to continue her studies.
Mike Monahan will enter Port
land University, having attend
ed EOC.
Happenings of 1957
offs at Hermiston.
PP&L starts modernization of
power service in area.
Korean orphan boy comes to
live at the Clem Stockard home.
Miss Joann Brosnan named
winner of UN Pilgrimage.
4.08 Inches of rain during March
breaks all time rainfall record
for any one month.
William L. Labhart installed
exalted ruler of the Heppner Elks
lodge.
First tornado In 70 years does
little damage but drops huge
hail stones.
Christine Swaggart named the
1957 fair and rodeo queen.
Dr. A. D. McMurdo named Ore
gon's first doctor of the year and
Heppner celebration held in his
honor.
Flash flood first since 1943,
but main damage Is to fields.
farms this could mean a slight
gain in per capita income of
farm people;
(5) the parity Index (prices
paid by farmers) is likely to
creep up further resulting in a
further slight drop in the parity
ratio;
(6) retail food prices may rise
further, because of Increases in
marketing charges.
(7) exports of agricultural pro
ducts will continue high, but will
probably be less than In the fis
cal year ending June 30, 1957;
(8) year-end stocks of wheat
and cotton may again be reduced,
but the carryover of feed grains
will increase still further;
(9) Government payments for
price support, for the Soil Bank,
and for export programs will
continue to be large, but the acre
age reserve program will be re
duced; (10) farm debt will probably
continue to rise, but the value
of farm assets will increase, too;
(11) land values will probably
rise somewhat, and levels, of liv
ing of farm families will prob
ably continue to improve, due in
part to increased income from
non-farm sources;
(12) food consumption and
diets of U. S. families will re
main at a relatively high level.
By commodities, they saw these
prospects:
Prices of cattle are likely to
average as high or higher in
1957. Hog prices will lokely hold
near 1957 levels during the first
half of 1958, but lower during
the second half as production is
expected to increase above 1957.
Prices of sheep and lambs may
be about the same next year as
in 1957.
A slight increase in milk pro
duction is expected in 1958, and
prices are expected to remain
near present levels. Cash receipts
from dairy products in 1958 are
likely to rise further to a new
high.
Egg prices to farmers probably
will be higher in 1958 than the
estimated 1957 average of 35 cents
a dozen; production will reflect
Continued on Page 6
-
Farm "tureau Slates
Membership Drive
The Morrow County Farm Bur
eau will hold Its annual mem
mership drive during January
it was announced this week, and
the captains of the teams will
start with a trip to Bend on Jan
uary 6.
An organization meeting will be
held at the Harold Beach home
a kickoff breakfast will be held
at Lexington on January 8 and
on January 13. The drive will end
January 15 with a meeting at
the Gene Cutsforth home.
First 1958 Baby
To Get Many Gifts
The first baby born in, or on
its way to Pioneer Memorial
hospitol after the start of the
new year will receive a big group
of gifts offered by Heppner mer
chants. The complete list of gifts
will be found In today's paper.
The annual event is sponsored
by Heppner businesses and will
offer a wide variety of prizes for
both the baby and the parents,
o
DIES SUDDENLY
Olin Applegate of Hood River
died suddenly Sunday night in
Portland where he had been
taken for observation. Informa
tion on his death is lacking, and
funeral arrangements have not
teen completed.
Mf. Applegate was married to
Rosanna Farley, daughter of Mr.
and Mrs. James J. Farley, Sr. of
Heppner.
Burton Peck of Lexington is
chosen Conservation Man of the
year.
County pioneer Mat Halvorsen
taken by death.
Oiling of Willow creek road
scheduled.
Memorial plaque1 presented at
Memorial day picnic.
Bonneville transmission tow
ers blown down near Boardman
in strong winds.
Bank of Eastern Oregon an
nounces plans for establishment
of branch in Heppner to open in
September.
Wilkinson ranching operations
win 1957 Grassman award.
Kenneth Smouse named to Ore
gon Wheat Commission.
Forest Service men report un
identified "Flying Hat." .
Hardman post office closed.
Hay worth $25,000 goes up In
Garnet Barraft Resigns
County Judge's Post
Garnet Barratt, Morrow county
judge for the past nine years,
late last wek submitted his res
ignation in a letter to Governor
Robert D. Holmes and askel that
JUDGE GARNET BARRATT
Death Claims
Frank W. Baker
Funeral services for Frank W.
Baker who died at his home in
Kennewick, Wn., Dec. 23 were
held at All Saints Episcopal
church December 2888 with the
Rev. George- R. S. Little, rector,
and the Rev. Charles W. May,
rector of St. Paul's Episcopal
church in Kennewick officiating.
Interment was in the Heppner
Masonic cemetery.
Frank Walton Baker was born
Feb. 2, 1907 at Sunnyside, Wn.
He attended school in Washing
ton and In the Willamette Val
ley and in 1955 received his dip
loma at Columbia Basin college
at Pasco. After working for a
number of years in the Portland
area and Stockton, (Mif., h
come to Heppner in 1949 where
he worked as a plumber and
later plumbing foreman at Pio
neer Memorial hospital.
On June 23, 1950 he was mar
ried to Josephine Mahoney in
Heppner and in 1951 he opened
his own business, the Baker
Plumbing and Heating Co. In
1953 he closed his business here
and went to Kennewick where he
worked in the atomic area. He
was later transfered to Camp
Hanford where he was employed
as a steam fitter for the Army
Engineers.
He was joined in Kennewick
by his wife in 1954 who fin
ished her news work for the East
Oregonian, Walla Walla Union
Bulletin and the two Portland
papers. She was also formerly
Heppner librarian.
Mr. Baker was a member of
the Episcopal church where he
served as vestryman both here
and in Kennewick; a member of
Tuality lodge AF & AM, Hills
boro; Heppner Elks lodge; and
Ruth chapter OES, Heppner. He
was a member of the Plumbers
and Steamfitters union at Pasco.
He leaves his wife Josephine of
Kennewick; his father Walter G.
Baker, Salem; his mother of Port
land; one son Frank Allan Baker,
Beaverton; two daughters, Mrs.
Shirdey Hill, Vancouver, Wash,
and Mrs. Jeanne Stalgler, Port
land;, a brother Ray Baker
of Klamath Falls, eight grand-,
children and several aunts, and
uncles and nephews.
Creswick Mortuary was in
charge of arrangements.
Shown in
smoke on the Harold Wright
ranch.
Damage heavy in fire at Wil
liam H. Padberg ranch near Lex
ington. 60 bushel wheat harvested in
lone area.
Range and wheat fifes plague
area.
"Uncle Will" Hynd taken by
death and his twin sister Mrs.
T. H. Lowe dies one week lated.
Wheat crop averages 36 bu
shels in the county.
Fair and rodeo opens.
Morrow County Grain Growers
buy 420,000 bushel Archer Dan
iels elevator at lone.
John Graves chosen 1957 county
Cattleman of the year.
New Hope Lutheran church Is
dedicated.
Recently named Grassman
Frank Wilkinson taken by death.
1- "VI
PI
a successor be appointed in the
near future. His term has three
years to run.
Judge Barratt stated that
health reasons made the move
necessary.
Judge Barratt has served Mor
row county in his present pos
ition since January 3, 1949, hav
ing been elected in the fall of
19-18. He was reelected in 1954
and has completed three years
of his present term. He had also
served a short term as county
commissioner, having been ap
pointed to fill the unexpired term
of C. W. McNamer in May 1944,
serving until the end of 1946.
Judge Barratt said in his let
ter to Governor Holmes that,
"It is with extreme regret that
I herewith submit for your con
sideration my request for release
from the official duties as coun
ty judge of Morrow county, Ore
gon, effective the date my suc
cessor has qualified by taking
the oath of office.
"In taking this action, I do so
only after much deliberation and
resistance from my co-workers
and citizens of Morrow county.
It is due entirely to health dis
turbances of both my wife and
myself, which upon the advice
of our medical doctors necess
itate a warmer climate during
the winter months. The past two
years I have been granted a
leave of absence, in addition to
an annual vacation, during the
winter months to alleviate this
condition. I am most appreciative
to the people of Morrow county
for their wholehearted coopera
tive consideration during this
time. Howeves, I sincerely be
lieve the time has now arrived
that It Is in the best interests
of ourselves and the citizens of
Morrow county that I retire from
the responsibilities of office."
Pledges Support
Judge Barratt's letter contin
ued. " In laying aside the duties
of office I make no recommen
dations as to a successor having
confidence that your selection
will be with the recommenda--tions
of the County Central Com
mittees and trusting it will be
one who will also be willing to
serve and assume the respon
sibilities of the office with the
best interests of all the county
at heart. I pledge my future
support to anyone willing to ac
cept the appointment on that
basis."
The governor's appointment
to fill the position, which would
be for the unexpired tehm, can
come from either political party,
inasmuch as Barratt received the
nominations of both parties and
was elected without opposition.
Had he been elected only by one
party, the law requires that the
person appointed be from the
same party.
There was no indication when
the appointment will be made
by the governor, but judge Bar
ratt stated Monday that he hop
ed it would be made immediat
ely as he and Mrs. Barratt hope
to leave late this week for Phoe
nix, Arizona.
Judge Barratt has served on
many boards and committees
during his years In public of
fice. He was president of the As
sociation of Oregon Counties in
1954; was a member of the Upper
Columbia River Basin commis
sion for four years, the entire
life of the group; he served for
four years on the Heppner school
board during the 1930's; was a
member of the Oregon Senate
for the special session in 1935;
and served for 15 years as a dir
ector of the Northwest Livestock
Production Credit association of
Portland.
Review
2.05 inches of rain In one day
sets another weather record for
the year.
Mrs. Ellen Rieth of lone cele
brates 101st birthday.
H. O. Ely of lone claimed by
death.
Bids called for rebuilding and
paving of Heppner-Spray high
way. Planning conference starts
study of city-county problems.
Flu causes shutdown of all
Heppner schools.
County's 1957 farm income said
highest in many years.
A Heppner nurse, Miss Wyma
Hoxworth badly burned in apart
ment fire.
71 degree temperature highest
ever recorded here in December.
Former county sherriff George
McDuffee dies in Portland.
Bank of Eastern Oregon moves
Into new building.