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Fortune Predicts Business
In 1955 WHI Be Best Ever
New York The year 1935
be the best in U.S. business
nistory, according to a New
xears forecast by Fortune
magazine.
ortune's business Foundup
predicts that business will con
tinue to improve at least to mid-
1856. A $24,000,000,000 rise in
- the nation's output of goods and
services is seen for the next 18
months from an annual rate of
5360,000,000,000 to $384,000,-
000,000 in the last quarter of
1954.
Last January the Roundup
predicted accurately that gross
national product would drop 3
per cent in 1954. In April it stat
ed correctly that the recession
had reached bottom. In July it
predicted a $10,000,000,000 up-
torn m gross national product
by mid-1955 (actual upturn, it
now appears, will be closer to
$14,000,000,000). '
' Two years ago Fortune pre
dicted that when defense spend
ing leveled off at around $40,'
000,000,000, gross national prod
uct would be $355,000,000,000,
With defense spending leveling
off at about that rate in the
fourth quarter, . the G.N.P. of
$360,000,000,000 is close to the
prediction.
Defense Spending '
Other forecasts by the Round
up for the next twelve to eight
een months: Defense spending
will decline only about $2,000,
000,000, to a $38,000,000,000
rate by mid-1956.
Consumer spending will in
crease 3 per cent a year from
the present rate of $235,000,000,-
000 to $243,000,000,000 in 1955,
'and another $5,000,000,000 in
the first half of 1956. Cost of
living will remain "remark
: ably stable."
Credit will tighten just a lit
tle, as business demand for bank
loans expands, but money will
remain "fairly plentiful and
cheap."
Horn e-biulding, though it
soared to a seasonally-adjusted
rate of 1,400,000 in November,
"cannot be expected to rise
much above 1,300,000 in 1955."
The spending rate for public
works construction ($8,500,000,
000 in 1954) will probably rise
, by another $1,000,000,000 in
1955, and by an additional $2,-
i 000.000,000 each in 1956 and
1957.
1956 Tax Cut
' Income and savings: "During
the recession, personal incomes
nearly held their own while the
G.NJ. in the 1955-56 upswing
$15,000,000,000 vs. $25,000,000,
000. The savings rate, now
slightly below the recent 'norm'
of 8 per cent of consumer in
come, should rise a trifle, but
; probably not until personal
taxes are cut again sometime in
1956. That cut may add as much
. to consumer disposable income
as the $3,000,000,000 contributed
:bv the tax reduction on Jan. 1
1954, part of which went into
savine and part into spending.
Exports: "U. S. sales of civil
ian goods abroad rose from $12,
300,000,000 in 1953 to $lz,ouu,
000.000 in 1954. They may rise
another $2,000,000,000 over the
next two years.
"The U.S. will be swelling the
outflow of dollars." Fortune
Stat e Turkey Flocks
On Level With 1953
Salem (U.R) Oregon tur
key flocks entered the new year
on almost an even basis with a
year ago, based on official pull-
orum tests, the State . Depart
ment of Agriculture said Sat
urday.
The year-end report of poultry
supervisor Earl Reitsma, who is
in charge of the testing for the
Oregon , turkey improvement
program, shows 232,945 turkeys
were tested to Dec. -30. This is
just 68 birds less than a year
ago. Tests were made in 232
flocks in 1954 compared with
241 in 1953.
The year-end report shows a
slight gain in the number of
birds of light breeds tested. This
means mostly Beltsville whites
In 1954 25,709 birds of the
lighter breeds were tested com
pared with 22,303 in 1953.
December testings included
49,797 of which 42,891 in 36
flocks were of heavy breeds and
906 birds in 10 flocks of the
light breeds.
4-H Club Hews
Club Meets
The Sew and Sew 4-H club
met at the home of Ann Fowler
for a Christmas party. The les
son given by one of the leaders,
Mrs. Van Dyck, was on groom
ing. Refreshments were served
and gifts were opened.
The next meeting will be held
Jan. 15 at the home of Susan
Giff ord.
The next project will be scarf
making.
Judith Van Gordon
Reporter
Returned to Medford
Dr. ROBT.'E. LEE, Optometrist
OFFICES NOW OPEN AT THE
BIG Y MARKET BUILDING
1912 N. Pacific Hwy.
EASY PARKING
points out. "U. S. imports will
increase as American industry
chews up more foreign raw ma
terials. More important, the Eis
enhower administration plans a
substantial increase in aid to
under-developed countries (but
only part will be direct grants,
the rest private investment with
government collaboration).
'Thus, whereas in recent
years the U.S. has been buying
jiore abroad than it sold (apart
from government gifts), an ex
port surplus of at least $1,000,
000,000 is likely by mid-1956.
Steady Growth In Economy '
Fortune estimates that the
Federal Reserve index of indus
trial production reached 130 in
December (up from 124 in Sep
tember). This is close to the level
Roundup forecast last summer
for mid-1955.
"Production may stabilize
from now through midyear,'
Fortune says. "If it does, what
will produce the renewed up
swing later in the year and into
1956? The answer is that there
will be steady, all-over growth
in the economy, strongly en
couraged by three governmental
programs: for more roads, big
ger exports, and lower taxes.
Murder Conspiracy
Suspect Denies Guilt
Hackensack, N. J. (U.R)
Carmine Priore, 52, indicted on
three counts of conspiracy to
kill Seafarers Union official
Paul Hall, pleaded innocent Fri
day and was held in $50,000 bail.
Priore was one of 10 persons
charged in the plot. He waived
extradition in New York to be
brought here for arraignment be
fore Bergen County Judge Dom
inick F. Pachella.
Meanwhile, acting Gov. W.
Steelman Mathis signed extra
dition papers to bring Ray and
Steelly White of Tampa Fla..
here in connection with the case,
Two others already being held
for trial here the James E. Cobb,
Tan-.pa, confessed triggerman in
the plot, and Edward Taffe,
Montvale, N. J. The names of
the other five suspects have not
been disclosed.'
Four Children Die in
Home Fire, Explosion
Watersmeet, Mich. (UJ?)
Four children burned to death
and four other persons were in
jured early Saturday when fire
started by an oil stove explosion
consumed a one-room house one
mile south of here. ;
The victims were the children
of Mr. and - Mrs. George Mc-
Geshick, Alvma, 10; Arthur, 7:
Herman, 6; and Francis, 3. In
jured were George Jr., 20; Ray
mond, 7, and two baby sitters,
Wanda Scott, 13, and another
girl, not named.
The fire broke cut at 2:15
a. m. when George poured oil on
embers in the stove and the
stove exploded.
AFL Leader Wants Big
Program During 1955
Federal Construction
Washington 4I.PJ AFI. Pres
ident George Meany wants the
government to give the economy
a ' shot in the arm by under
taking a huge school, hospital
and highway construction pro
gram. He asserted in a year-end mes
sage to AFL members Friday
night that the American econo
my can "forge ahead" in 1955
if the government leads the way,
or "it can be retarded if the
government sits back and does
nothing to encourage the return
of prosperity."
Would Create Jobs
Meany said a big government
construction v program would
create jobs.
In reporting a new increase
in state insured unemployment,
the Labor Department last
night blamed seasonal slow
downs in construction, lumber
ing and. food processing as well
as some curtailments in fabri
cated metal, machinery and
electrical equipment industries.
It said insured unemployment
increased by 22,800 persons to
a total of 1,605,300 during the
week ending Dec. 18. In the fol
lowing week, it said, 303,500
persons filed new claims for job
less . pay, an increase of 1800
over the previous week.
Sharp Upturn Indicated
Meany acknowledged that a
sharp business upturn this spring
is indicated, but warned there
is "one dangerous factor.
"Unemployment remains un
necessarily high and will prob
ably contmue to climb until
March or April," he said, adding
that this loss of purchasing pow
Phone 3-5923
ir.T-T"
Mummers Greet
Entry of New Year
Philadelphia (U.R) Some
12,000 gaily bedecked marchers,
prancing and strutting to the
tune of "Oh, Dem Golden Slip
pers," greeted the new year Sat
urday in Philadelphia's tradi
tional Mummers Parade.
Clear weather with tempera
tures in the comfortable upper
40s swelled the crowds lining
Broad st. to an expected record
of more than l.OOO.-OOO.
A total of four fancy clubs,
five comic divisions and 21
string bands vied for the $52,000
in prizes donated ths year by
the city, a record amount. But
the prizes amounted to only a
small fraction of the money
spent by the new year "shoot
ers" on the costumes they wore
above their gilded shoes.
Pink was the predominating
color among the varied pastels
chosen by the fancy clubs for the
embroidered, spangled and se
quined satins of their costumes.
Variety of
Mark New
Washington Rose Bowl,
Hogmanay, 12 grapes, "first
foot" all say the same thing,
Happy New Year.
Since calendars were devised
men have celebrated the New
Year according to differing cus
toms, says the . National Geo
graphic Society. Yet few other
holidays reflect so universally
mankind's hope for future hap
piness.
This spirit has most often
found outlet in special feasts,
parties, and visiting with friends
and relatives. In the United
States, where New Year's day
arrives late on its journey across
the world from the Pacific In
ternational Dateline, sports
lovers from Florida to Califor
nia have added something typi
cally American football com
petition.
Civic Products
Pasadena's Rose Bowl game,
now a part of the annual pagean
try of the older Tournament of
Roses, was born Jan. 1, 1902,
After a lapse it was firmly re
established in 1916 and set the
pattern for more bowl games:
Miami's Orange Bowl, New Or
leans' Sugar Bowl, Dallas' Cot
ton Bowl and others that read
like a list of civic products.
Another gala event that gets
each infant year off to a breezy
start is the gay and elaborate
Mummers' parade of Philadel
phia. With a history that goes
back 'to a city-wide festival of
Jan. 1, 1876, today's all-male
string bands, fancy-dress and
comic-club performers put on a
pageant of color and capers .that
delights hundreds of thousands
er "may sap the ; strength of
the economic recovery 1 unless
the government acts promptly
to create new jobs." -
r fiw m mm w m miz m
President Has Quiet
New Year's Eve; Set
To Resume Busy Slate
. By MERRIMAN SMITH
UP White House Writer
Augusta, Ga. U.R) President
Eisenhower celebrated New
Year's Eve quietly in the plush
surroundings of the Augusta Na
tional Golf Club and made plans
Saturday . to return to a busy
Washington schedule Jan. 2.
The m-esident escorted his
wife and her mother, Mrs. El
viera Doud, to the trophy room
of the club during the last eve
ning of 1954 for dinner. He then
joined members of the club in
festive but quiet New Year's Eve
celebration.
Aides said the President left
the clubhouse shortly after mid-
Customs
Year's Day
of watchers from early morn to
late afternoon
Back in the merry making
hours before dawn of New
Year's Day, 1831, a group of
gentlemen who had dined and
wined at a famous Mobile, Ala.,
restaurant, equipped themselves
with cowbells and rakes, and set
out to rouse - sleeping house
holders.
The sport led to the formation
of a mystic society that kept up
the noisemaking for years. When
interest lagged, another sponsor
ing group turned the revelry
into an annual carnival parade
Later Mobile's carnival was
moved up to Shrove Tuesday,
leaving a masquerade ball that
still carries on the New Year's
Eve tradition.
Grapes for Months
Unusual as are some Ameri
can observances, however, a
great body of New Year festivi
ties has been inherited from
Europe. In France and Scot
land New Year's Day became
and remained the most import
ant festival of the year; a time
for exchanging gifts, cards and
visits among kith .and kin.
' The traditionally dour Scot
threw tradition to the winds
and named New Year s . Eve
Hogmanay, grouping it with the
whole 'New Year's season as the
Daft Days." Hogmanay, too, is
the cry of Scottish children who
flood the streets on New Year's
Eve and demand cakes and fruit
from the neighbors.
Twelve grapes are a part of
the gay Spanish New Year's Eve
celebration in the Puerta del
Sol, Madrid's Times Square. As
the clock strikes midnight the
grapes are. held high overhead
and eaten for luck one for each
month' in the .year.
In England a glass of wine and
slice of bun loaf are . rewards
for visitors who ?'first-foot" (ar
rive first) at a home following
the birth of a new year. A "first
foot" sometimes called lucky
bird, brings with him the tradi
tional symbols of warnith and
prosperity coal, bread and salt
and is welcomed because he
"lets in" the New Year. Repre
senting the ,old year, too, he
leaves by the back door.
U U ruLT f Lb U Zri LIJ IS 9 -'
127 NO. CENTRAL
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night and went to his cottage
by the goif course.
The White House announced
Friday night that Mr. Eisenhow
er and his wife will return to
Washington today. They1 will
leave Augusta in the presiden
tial plane, Columbine HI.
Busy Schedule
The President faces a busy
schedule at his White House
desk preparing his State of the
Union message for delivery next
week and getting ready for the
opening of the new Congress.
Before Mr. Eisenhower began
his New Year's observance he
announced the appointment of a
three - man emergency board
which had the effect of pre
venting AFL machinists from
striking against six major air
lines, at least until Feb. 20. i
The President appointed
Judge Adolph E. Wenke of the
Nebraska Supreme Court as the
special board chairman and
James P. Carey Jr., of Chicago
and Francis J. Robertson, of
Washington, D. C, as the other
members. Carey and Robertson
are attorneys.
Mr. Eisenhower created the
emergency board on Nov. 16,
but withheld actual appoint
ment of its members until Fri
day night. . .
The airlines involved in the
threatened strike, according' to
White House Press Secretary
James C. Hagerty were Capital,
National,. Northwest, Trans-
World, United and Eastern.
Denies Report
The White House Friday night
denied a report that Gen. Mat
thew B. Ridgway, Army Chief
of Staff, had written Mr. Eisen
hower expressing concern over
a planned cutback in Army man
power during the . next 18
months.
White House Press Secretary
James C. Hagerty said Ridgway,
along with other military staff
chiefs, was requested, some
months ago, by Secretary of De
fense Charles E. Wilson to sub
mit a memorandum . on service
manpower needs
Hagerty said the request was
made by Wilson long before the
Administration announced its
final decision on manpower cut
back. Hagerty would not say
whether Ridgway expressed con
cern to , Wilson but he added
that the" Army staff chief's opin
ion were ; stated to Wilson and
not to the President.
Friends Church Opens
Convention in Salem
Salem (U.R) Some 150 young
persons from 50 Friends churches
in the Northwest op sned a three
day midwinter convention here
Friday night.
Rev. Gerald Dillon, First
Friends Church, Portland, ad
dressed the group.
Highlight of Saturday's pro
gram was a .banquet at the Mar
ior hotel, with Phil Harmon.
student at George Fox College,
in charge.
Milo Ross, president of George
Fox will address the group Sun
day morning. , Rev. Hal May,
Marion 4 Friends Church, will
speak tonight at the concluding
session.
Across From Penney's
Sunday, January 1, 19S5
$1,194,000 Budget Set Up
For Oregon's Park System
Salem (U.R) The Oregon
state parks division of the State
Highway Department will have
a budget of $1,194,000 for main
taining, developing and operat
ing the state parks system dur
ing 1955.
State Parks Superintendent
C. H. Armstrong said more than
a third of the budget will be
used for operating of the parks,
including - upkeep of the many
facilities provided for the pub
lic. . :
Operation of the Oregon
state parks system is administer
ed by representatives with head
quarters ia State Highway De
partment buildings' in Salem,
Only One Highway
Death in Oregon
On New Year's Eye;
Portland (U.R) Oregon-
ians, heeding the pleas of po
lice and city officials, welcomed
the New Year Friday night in a
safe and sane manner, although
there , was enough' noise-making
to satisfy the most enthusiastic
celebrant. ''
One Fatality
There were only a few scat
tered accident reports from
around the state and by 'mid
morning Saturday only one
highway fatality had been . re
ported. State police said j Mrs.
Inez Wilson, 38, Eugene, had ap
parently drowned in the Willa
mette river when the car in
which she was riding plunged
into the stream about 15 miles
east of Eugene. .
In Portland, police had threat
ened to put up .' roadblocks if
necessary to stop drunken and
reckless driving. But only i five
motorists .were 1 arrested for
drunken driving and there were
only a few minor, accidents re
ported during the night. : The
pattern was much the same else
where around the state."
Plenty of Noise
Light rain fell over most of
western Oregon ljut -it failed to
dampen the spirits of those who
stayed up to greet the New. Year.
Nightclub operators reported
capacity crowds with plenty of
noise-making, although most re
ports said the . patrons were
orderly. . . 7 ,
Four Killed in Crash
On Arizona Highway
Kingman, Ariz. (U.R) Four
persons were killed late Friday
night and four. others seriously
hurt when a car carrying nine
persons crashed ; into the . left
corner of a flat bed truck being
towed by another car 16 miles
west of here on U.S. Highway
66.
The Arizona Highway Patrol
identified the dead in the King
man crash as Carl Burke, 23 , his
wife, Lillian, 21, Arsenio Gar
cia, 19, who had a New Mexico
address, and Rachel Guerin, 18,
of Kingman. Driver of the car
was identified as Joe Esquibel,
16, Kingman.
The driver of the car which
was towing the flat bed truck
was identified ' as Walter R.
Coretti, 29, West Covina, Calif
Portland, La Grande, Bend and
Coquille.
Armstrong predicted that
within 10 years Oregon state
parks will be accommodating
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23 North Fir Phone 2-2472
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10,000,000 visitors. The parks
division now administers 158
separate park areas containing
55,052 acres.
There has been a trend toward
boating facilities, Armstrong
said, and such facilities wll be
avalable at three new parks ths
year at Fort Stevens, Ochoco
reservoir and at Detroit dam. '
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