Medford mail tribune. (Medford, Or.) 1909-1989, December 31, 1954, Image 1

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Medford mail tribune., December 31, 1954, Image 1

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Newspaper Page Textstem Forecasts Mebforb United Press Full Leased Wire . . '.. r , - 37Nqtr ' United Press Full Leased Wire 49th Year 14 Pages MEDFORD, OREGON, FRIDAY, DECEMBER 31, 1954 Price 5e No. 244 General Business - Increase for '55 Economist Roger W. Babson sees a general business increase In, his forecast for 1955, which appears below. Babson sees encour agement for retail sales, food prices to firm later in 1955, the wage trend in organized industry to move higher and a spread in the uranium "craze" which could exceed the Gold Rush of 1849. He seefs no relief in income taxes until the election year of 1956 and forecasts no crash by the stock market during the coming year. As to World War III, Babson says the initiative in international affair? still rests with Russia but feels the Kremlin is not yet ready for an all-out attack in 1955. By ROGER W. BABSON 1. GENERAL BUSINESS. Despite wails from some quarters, 1954 saw a drop in the average Physical Volume of Business of only 5 per cent from the record year 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 nessmen 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 more rapid rate than has produc tion. I forecast a better record in early 1955 for both steel and automobiles 4. TEXTILE INDUSTRY. Textile industry operated at extreme ly low levels throughout most of 1954. Coal and railroad equip ment also exerted a strong downpull. I forecast that the textile and coal industry will be in a recovery phase after their long stay 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 reduced free supplies, and may make for. higher agricultural prices later in 1955. j ' 8. ARMAMENT INDUSTRY. The armament industry will still be one of the main floors beneath 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 cloth ing, aircraft manufacturing, airline transportation, office equip ment, electricity output, petroleum production, natural gas and shoes. I am also fairly bullish on rubber, paper, electrical equip ment, certain types of building, and nonferrous metals. 10. WEATHER CONDITIONS. It is foolish for me to attempt to forecast rains, droughts, frosts, etc., for any special section. However, 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 competition is chipping away at the profit margin. Return on invested 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 intensi fied competition, will continue during 1955. I forecast a high de gree of selectivity in the effect of this trend on individual activi ties and companies. Victory will be for the. nimble and .for the strong.'' -.-.-t-; ; :" . " 14. DIVIDENDS. Recent high expenditures for new plant, and machinery have left some concerns with very high depreciation charges. As new capital commitments are cut and depreciation re mains high, cash inflow could expand. Such companies should be able to pay out in dividends a higher percentage of earnings in 1955 than in recent years, notwithstanding a moderate profits shrinkage. 15. INVENTORIES. Inventories have been permitted to run down during 1954. As total business expands, there will be a ten dency to replace reduced stocks, especially during the first half of 1955. Total manufacturers' 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 MANUFACTURED GOODS. Even with the ex pected pickup in demand, I see no sharp markup in industrial prices next year. Overall supplies are generally ample. Hence, I forecast that industrial prices in 1955 will show little change 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 sat isfactory levels. Most goods should move readily into consuming channels. 19. LIVING COSTS. I forecast that during 1955 living costs will show little overall change from present levels. There may be some firming during the first half, but the late months may 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 forecast 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 easing 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 fore cast that no runaway inflation 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 likelihood of higher interest rates. 24. BOND PRICES. With the possible exception of tax-free bonds, I see no reason for increased bond, prices in 1955. I fore cast an increase in the issuance of tax-free revenue bonds. 25. STOCK PRICES. After so sharp a rise, the market could have a reaction; but I am forecasting no crash in 1955 such as we had in 1929. In fact, the situation changed for the better. Oct. 11, 1954. 26. WAGES. I forecast that the wage trend in organized indus try 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 weapon. 27. OTHER LABOR GAINS. I forecast that the heavy guns, of the labor bigwigs will be trained on the guaranteed annual wage, shorter work week, and more pensions. With a better congression al control of appointments to the National Labor Relations Board, the decisions of that body will swing more toward labor than toward management. 28. NEW INVENTIONS. These will mostly be a labor-saving type. I forecast a marked increase in automation and cybernetics, and other marvelous changes in production methods. 29. EMPLOYMENT. Unemployment outlook is brighter, since business will be on the upgrade during the first half. I forecast that local and seasonal employment will still prove a knotty problem. 7 30. FAILURES. The salient busines characteristic of 1955 will be bitter competition. Many companies already weakened by com petitive conditions will no longer be able, to keep afloat. I forecast a rise in both the number and the total value of failures during 1955. - ' ' - - - ' 31. MERGERS. I forecast that mergers and consolidations will be encouraged by federal officials, if, by merging, a weak company can be saved. But while every effort will be made to prevent (Continued ea Page 2) Medford Man Killed In Collision of Two Vehicles Thursday Fred J. McPherson Victim of Accident Fred Joyce McPherson, 66, GeBauer apartments, was killed in a two-vehicle collision at the intersection of McAndrews and Biddle roads at about 2:15 p. m. yesterday. McPherson was driving a pick up truck. Driver of the other car, a ranch wagon, was Mrs. Dorothy Tuttle, 29, of 3074 Bel linger rd. A passenger in the pickup was William V. Johnson, 65, of 5 Valley View dr. Mrs. Tuttle and Johnson were taken to Community hospital by Medford ambulance service, where she was treated for shock, bruises and an arm, injury, and he was treated for a .broken wrist. Both were in "good" con dition this morning. Fails to Stop State police said Mrs. Tuttle was driving east on McAndrews rd - She told officers she at tempted to stop at the stop sign, but was unable to do so, and the two vehicles collided. Officers reported that the pick up truck was driving south on Biddle rd and that the force of the impact spun it around to the left, and forced it some 40 feet from the point of impact. The driver was thrown from the cab against the side of a concrete lined irrigation ditch. Mrs. Tuttle's car also was spun around by the impact, and was facing west when the investi gating officer arrived. Both ve hicles were badly damaged and had to be towed away. In Lumber Business Mr. McPherson was born in Schuyler, Neb., on Feb. 18, 1888, and had been a resident of Med ford since about 1915. He was engaged in the lumber business, and earlier operated a men's clothing store here until 1932. He was a member of the Masonic lodge. Survivors include. Mrs. Mc Pherson and their son, Fred N. McPherson, and several nephews living in Portland. " . ' Funeral arrangements are be ing made by. Perl funeral home. Woman Hospitalized State police also reported that Mrs.' Alfred J. Kittock, 40, Klam ath Falls, was treated for in juries at Ashland hospital yester day afternoon, after a car driven by her husband collided with one driven by George Frederick Bradley, 63, Box 12, Jackson ville. The collision was on the Greensprings highway about eight miles east of its junction with Highway 99, officers said. Both vehicles were seriously damaged. . Officers cited Bradley for fail ure to -operate on the right side of the highway. . Father, Son Hurt ' Joe Everett Robertson, 30, route 1 box 391, Central Point, and his son, Curtis, 2, were in jured about , noon today in an auto accident near the Richfield truck station on Highway 99. Officers said that a sedan driv en by Robertson, proprietor of Don's drive-in,: Central Point, struck the rear , of a concrete mixer truck operated by Lester Lane Dusenberry, 40, 2810 Elli ott ave, Medford. Robertson suffered forehead cuts and chest bruises and his son a cut lip. They were taken to Community hospital by Med ford Ambulance service. Dusen berry reportedly was not hurt. Hammarskjold Talks With Anthony Eden London (U.R) U.N. Secretary general Dag Hammarskjold con ferred with Foreign Secretary Anthony Eden today on his deli cate mission to Peiping to obtain freedom for 11 imprisoned Amer ican and U.N." prisoners held by the Reds. Timed with the secretary's ar rival was an announcement by Moscow Radio that the Chinese Reds had sentenced 12 alleged "American Chiang Kai-shek agents" to death and two others to life imprisonment. . It appeared that all of the 14 were Chinese. Hammarskjold received a warm airport greeting from Huang Hsiang, the Communist Chinese envoy to London upon his arrival. Weather FORECAST: Generally cloudy with occasional rain ' in val leys and snow In mountains . above 4.000 feet through Sat urday. Low tonight 42. High Saturday 50. ! , , Temp. Highest Yesterday 49 . Lowest this Morning 41 Irec. to 4:30 a.m. Today 57 StMU tag I TRIPLETS SHOWN OFF The? Rolls triplets, born at Sacred' ed 3 pounds 13 ounces at birth, but reportedly 'gained an Heart hospital Wednesday morning, pose above for their por- ounce this morning. The middle one (in center incubator) traits. The parents, Mr. and Mrs.- James W. Rolls, 512 Summit : weighed.4 pounds 6 ounces, and the largest weighed 4 pounds ave., still have not decided definitely on names for the three 8 ounces. All are said to be doing well. The nurses are Mrs. tiny boys. The smallest (at left) was the first born, and-weigh- Rara Rucker, at left, and Mrs. Addie Price. (Brainerd photo) Problem of Names For Triplet Boys Unsolved by Mother The problem of what to name three tiny boys is giving Mrs. James W. Rolls a bad time to day. The mother, of the triplets born .Wednesdasrat-SacXeaHeart hospital has not been ablte to decide definitely, that is on names for her three new sons. The youngsters, all being kept in incubators because, of , their small size and prematurity, are doing fine, according to the proud nurses of the obstetrical department, whose "pets" they are. The smallest one gained an ounce today, they report The others are holding their own. Meanwhile, Gerber Products Co., makers of baby food, an nounced through their local representative, Jack Rente, that the triplets will be given a one year supply of Gerber's baby food. Al Dumas, of Medford Domes tic laundry, said yesterday aft ernoon he will give the family 30 days of free wash-dry-folded laundry service. Earlier, the father, an em ployee of City Sanitary Service Co., was presented with $100 by his employers, and given a $1 per day raise. Others in the city, including retiring Mayor Dia mond L. Flynn, have indicated an interest in giving the young parents an assist with their mul tiple new responsibiltes. The famly lives at . 512 Sum mit ave. Yule Tree Pickup Planned for 'Dimes' 'The March of Dimes will be aided by the Medford Loyal Order of the Moose Sunday, Jan. 2, when members of the lodge will pick up old Christmas trees throughout the city. They will begin the project at noon that day. They ask that persons having Christmas trees to be disposed of place them in front of their homes, and that contributions for the March of Dimes be included. They suggest that householders place the con tributions in envelopes and seal them, and if receipts are desired, include their names and ad dresses. -, . . That evening at 8 p.m., men of the lodge will burn the trees in a huge bonfire in the Camp White area. The public is invit ed. Provided that weather condi tions are good, musical enter tainment is planned for the eve ning event. Medford Boy Scouts of various troops will cooperate in the project, the lodge men said. Those who want more infor mation should call John Keener, telephone 3-3661. DOW-JONES AVERAGES New York (U.R) Dow-Jones final stock averages: 30 indus trials 404.39 up 2.42; 15 utilities 62.47 up 0.62, and 65 stocks 150.22 up 0.77. Sales today were about 3,840,000 shares compared with 3,590)00 shares yesterday. Ma rch of , Dimes Kickoff Hears; County Campaign Leaders Listed Plans for the annual March of Dimes campaign January 3 to 31, to raise funds to combat infantile paralysis, moved a step nearer completion today with announcement of those who will head the campaign in various towns in the county. --The list,-- revealed -by Bobl Smith, cochairman with Van Purdy for the sponsoring Med ford Active club, include .Thomas Reeder, Medford; . Mrs. Curtis Gerhardt, Applegate; Carl Sur berj - Ashland;' William Fry, Butte Falls; William Cody, Camp White; Wendell Panter, Central Point; Don Geren, Eagle Point; the Rev. G. W. Gear, Gold Hill; Ray Wilsdn,' Jacksonville; Frank Lovett, Phoenix; Heston Grieve, Prospect; Mrs. C. W. Gleim, Tal ent,' and Mrs. Eva Segessenman, Shady Cove. Duffy Heads Publicity John Duff y, Medford, will con duct the publicity campaign at th county level and Russ Jami son; radio -station- KMED, will coordinate radio and television programs. J. D. Montieth, of the U. S. National bank, Medford, will again serve as campaign treasurer. "The need for funds is great er than ever," Smith said today. "More than 60,000 persons who have had polio in past years are still looking toward the National Foundation for Infantile : Par alysis for care, and.theSalk vaccine trials, which are costing many thousands of dollars, are yet to be completed," Smith said. Results of a University of Michigan evaluation test of the field trials are expected to be announced in April, according. to National Foundation spokesmen, and indications are that the vac cine will be available to the gen- Extra Policemen On Duty Tonight Extra police patrol cars will take to the roads in Medford and J ackson . county tonight in an effort to prevent automobile accidents, particularly those .in volving drunken driving. . City and ' state officers have orders to stop all cars that are operating in an erratic manner. , All available city police offi cers will be on hand tonight and early tomorrow to drive home motorists who 'have had - too much to, drink, according to Po lice. Chief Charles Champlin. ? . All public offices except those of law enforcement and fire pro tection ' agencies will ' be closed all day Saturday, and most busi ness places plan to be closed throughout the day. ' A The Mail Tribune's business office will be closed Saturday. Slight Earthquake Felt at Bishop, Calif Bishop,: Calif. jflJ.R) A' slight earthquake was felt here today, causing windows and :- dishes to rattle for about two seconds.. . . There was no damage, police said. eral public in 1956 if the tests prove satisfactory, which they are expected to do. . An . unavoidable delay . in re ceiving supplies will slow the local campaign at the start, Smith said, but coin cards will be in the mail in a few days and coin collectors will be distributed to' places of business throughout the county as soon as the supply arrives., .- . Mendes-France Seeks ference Big Four Con Ratification Praised Paris (U.R) Premier Pierre Mendes-France turned today to the task of pacifying .Moscow which denounced French ratifi cation of the German rearma ment pacts as an aggravation of the danger of a new war. Mendes - France, bone - tired after a 11- day parliamentary crisis that threatened his gov ernment and the Western alli ance, sought a big four meeting with the Soviet Union as a means of easing international tension. Agonixing Decision The decision to rearm Ger many., was an agonizing one and it left France deeply divided. A meeting with the Soviets would perliaps ease ' the tensiorf in France . . ! : . - The new eran European his tory began at 6:54 p.'m. Thurs day afternoon when it was of ficially announced the assembly had approved German rearma ment by a vote of 287 to 260. The assembly then sat' in dead silence, appalled at the agoniz ing decision it had reached after four years of indecision. , - ? London (U.R) French ratifi cation . of the German rearma ment pacts brought praise today from the free nations of : the world, condemnation by those in the Communist bloc and a warn ing from Moscow Radio that it aggravated the danger of a new war. ' ' : - -V ;'"' British newspapers in general warmly welcomed the French action though the Manchester Guardian, which favors the West ern European Union, warned: ; May Improve Relations "It will be proved either that they (the agreements) enable the West to talk from strength in a way that will actually improve relations with Soviet Russia and the East . . . or very much less happily - that Moscow will go ahead with the resentful retorts it has threatened in the past two weeks." . " ... . ; ' Comment in Asia . was sharply divided. Neutralist and Commu nist nations opposed it. Such pro Western nations as the Philip pines, Japan, Nationalist China and South Korea favored it. ; Some said West German re armament would spark a renew ed arms race, make more diffi cult the explosive issue of Ger man unity,' and check it not reverse the recent trend toward "peaceful coexistence." Pedestrian injured When Struck by Auto Robert Stensvick, 76, of . 520 North Front St., was taken to Community hospital by Medford Ambulance . service . yesterday, after he was hit by a car at about 5:23 p.m. at the intersection of North Central ave. and Fourth st. Driver of the car was Dale Ramon Flowers, 17, of 306 Apple st., according to police. ': Stensvick, who suffered head injuries, was said to be in good condition at the hospital. Year-Around Oregon School Operation Plan Suggested Corvallis U.R) - A radical departure from traditional school terms was proposed here yesterday by Sate Senator-elect Mirk Hatfield of Marion county. Hatfield said he would ask the state superintendent of. public instruction to make a study of the feasibility of operating Ore gon schools the year : 'round, with staggered vacations for stu dents .and teachers. ? "":.- . I 18-Tear-Old Vote Talked" j In a speech before the Cor vallis Rotary Club, Hatfield also raised the .' question of the 18- year-old vo.te. He ' said he was canvasing the opinions of social science teachers around the state. . ' ' "Maybe . ih .time . is right., to put the matter to a vote of the people," he said. , . . , Hatfield, dean of students at Willamette University and po litical science instructor, said his year-around school plan would avoid closing down school phy sical plants for three months each year and would give teach ers a chance to attend graduate schools during the regular school year. I:' V Won't Accelerate Education He denied that it was designed to accelerate education, since all students would attend school the same amount of time each year. Class loads during the sum mer would, probably be lighten ed under the plan but compen sating time off would be given, at other times. . " Streams Receding; Landslides Block Dnarlr Dail linoc IVUUUJf lUIB hlllVrJ More Than Five Inches Of Rain ot Brookings By UNITED PRESS . : ' Oregon coastal residents from Astoria to Brookings dug out to day from the "effects of a torren- ' tial rainstorm that sent streams ' out of their banks and blocked highways and rail lines with slides. - "' . .. : Brookings, on the south coast, had. more than five inches of rain in a 24-hour period and the rainfall was heavy all the way north to Astoria. But the rain slacked off 'today and streams were reported going down. Highway and rail crews were busy clearing away rock and mud. High Water Expected Residents of the lower , Co- quille valley braced for high wa ter expected this afternoon from the upper reaches of the stream's north fork. It was not known immediately how high the crest would be, but no serious dam age or livestock loss was report ed from upstream points where the north fork shot over its bank late yesterday. The north fork was receding today as was the Coos river which went over its banks in some places. There was water over the highway between Coquille and . Myrtle Point, hut traffic was getting through. ' Trains Delayed Two Reedsport local , trains were held up at Mapleton and another freight train stopped at Wendson for the night. The Southern Pacific branch line be tween Coos Bay and Eugene was ...4. .t.niu T . cliJa. u-. More than two inches of rain loosened an embankment over loosing jtiignway u near Asto ria yesterday and the resulting landslide blocked the route near Tongue Point naval station. A bridge on Highway 101 south' of Port Orford was washed out and highway officials said traffic would be diverted over new construction if the damage could not be repaired promptly. : . . Highway 36 Blocked . An earth and rock slide near Mapleton between Eugene and Coos Bay blocked both Highway 36 and the Southern Pacific -branch railway line. Debris was X. I -3 n 4-1. m. 1UUT leei ueep uvci jjmu ua uie two routes. .. - A virtual cloudburst dumped 5.43 inches of rain on Brookings in the 24-hour period ending at 4:30 p.m. yesterday and ground water, coupled with gale-driven : tides, flooded several roads but all were considered passable. . A , section of new highway -the impact of 3.93 inches of rain and the rocks and mud caught a passing auto and a grader. The driver of the car was rescued un injured, -., , Guards were placed on sever al fill areas along the new coast highway, to. alert motorists against sectors weakened by the , rains. . . ' In contrast to the heavy rain on the coast, Portland got .51 of an inch.1. 1 Salem (U.R) The Willamette river . rose sharply today but forecasters said no serious flood threat existed unless heavy rains returned. . The stream rose 7.3 feet here in 24 hours. The Willamette rose 5.5 feet at Albany and the lower Santiam river went above flood stage at Jefferson. The five-day . outlook by the weather bureau called for recur ring rain with a total of 2 to 4 inches in coastal areas and along the west slopes of the Cas cades with 1 to 2 inches in in terior valleys. Eisenhowers Planning Festive Celebration Augusta, Ga. U.R) President and Mrs. Eisenhower plan a fes tive New Year's Eve with mem bers' of .the Augusta National Golf club. ' The chief executive, his wife and her mother, Mrs. Elivera Doud, planned to dine in the Trophy room of the club. According to members of the Eisenhower staff, the chief ex ecutive will stay up until mid night, then go to bed shortly afterward. , -. Selah, Wash. (U.R) Tire swept through the Samson-Biehn Fruit Co. ; packing room here last night, causing damage esti mated at $50,000.