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MEDFORDfe
Unite Pr
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Full Leased Wire
49th Year 14 Pages
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VACATIONING PREMIER French Premier Mendes-France (left) walks through the fish
ing village of Positano, Italy south of Naples during brief vacation with his wife. Sources
in Rome said Mendes-France thinks this is just the right moment for the West to pro-
ose Big Four talks with Russia, and they add that he will press this point in talks with
talian leaders.
HamarckjoldTo
Be Met by Top UN
ficials at SF
: United Nations, N.Y. U.R)
Two tbp UN officials flew to
San Francisco today to receive
from UN Secretary-General Dag
Hammarskjold his first hand re
port on his efforts to win free
dom for 11 American-airmen
jailed in Red China on "spy"
charges. V ;
Hammarskjold, who has drop
ped no hint of the results of his
negotiations in Peiping, is ex
pected to arrive in San Francisco
tomorrow. .
I 'American and UN authorities
are deeply concerned because of
the growing threat that U.S. con
gressional sources will bring
heavy new pressure for a block
ade of the China mainland and
other retaliation unless the U.S.
airmen are released.
Failure Reported
Their concern has been height
ened by reports from highly
placed diplomatic sources in
London that Hammarskjold fail
ed to obtain from Red China's
Premier-Foreign Minister Chou
En-lai the immediate release of
the airmen.
Hammarskjold is expected to
report that he has kept the door
open to further negotiations
which may bring freedom to the
II jailed Americans at some fu
ture date.
On hand to receive his report
on his arrival in San Francisco
will be Andrew W. Cordier, the
secretary general's chief execu
tive assistant, and Wilder Foote,
top press spokesman for the Un
ited Nations.
Even- then it is doubted that
a public report will ' be made
available until Hammarskjold
has returned to UN headquarters
here and reported to the United
Nations and the United States.
Radio HighUghfs
Claire Eooth Luc. United
Stales ambassador to Italy,
will spak over CBS, and sta
tion KYJC (1230 kc) at 9:30
; pjn- Thursday. ?
Crater Lake Park Visitors
Make 1954 Second-Best Year
;- Travel into Crater Lake Na
tional park during 1954 was the
second highest on record, Super
intendent Thomas J. Williams
said today. It was exceeded only
by 1947. .
; The number of visitors last
year was 370,554, compared to
447,300 in 1947, the post-war
year when virtually all tourist
records were broken.. ? :
July Biggest Month
; July of last year, ' however,
was the largest single travel
month in the history of the park,
Williams reported, when 114,154
people entered the park. .
-Williams said he expects 1955
to bring, more visitors to the
' ark than 1954, largely because
of the increasing interest in win
ter sports and the improved
snow clearance program in ef
fect on the park's roads during
the winter. - , . "
MEDFORD, OREGON, WEDNESDAY, JANUARY 1 2, 1 955
Cms
I! 0
.Temporary offices" for Fir-
Ply, Inc., have been built and a
lng pond is being dug, it was
announced today.
, ,- The newly-formed company,
which announced plans recently
for a " half -million dollar rough
plywood mill, has leased 40
acres -in the Camp White area
from the White City Realty
company. Work on the mill
proper is to begin Monday, ac
cording to Carl Jacobson mana
ger of the company.
To Buy Logs
The pond is being completed
rapidly so that logs can be pur
chased on the open market to be
ready when the mill itself is
completed, he said. Construction
of the mill is expected to take
about three months, and ' the
work is being handled by the
Acting Poiice Chief
At Ashland Gets Hod
Ashland Acting Police Chief
Herb Hays will receive a: per
manent appointment as chief
when the city council meets next
week, the Ashland Daily Tidings
has reported.
- Hays has been acting chief
since . the ' . resignation . of Vern
Smith . recently. He : has been a
member of the police force since
1946, and was named 'assistant
chief in 1948s
Three men had submitted ap
plications for the job, Hays, for
mer Deputy Sheriff DeArmond
Leigh and Police ' Sgt. George
Bennett. Mayor Richard Neill
last week submitted Leigh's
name to the council for confir
mation, but the .council rejected
it. - . -'r;,-;
The Tidings said the council
this week met informally and
voted, five to one, to approve
Hays' appointment.
Two regular ski runs are
maintained from the rim to park
headquarters, and many families
come to the park for skiing, or
simply to play in the snow or
look at the scenery, Williams
said. , A warming hut is open at
the rim on week ends and holi
days. ;
Reports Clear Days
. The; superintendent reported
that 10 days in December were
clear and were ideal for winter
time photography.
He suggested that weather
conditions be checked before"
driving to the park, and the
park i telephone exchange i3
open from 8 a.m. to 4:30 pan.
daily. All cars visiting the park
should carry chains, though oft
en they will not be needed, par
ticularly on - cars which have
snow tires, he said. . .. . - ..
ill Construction-
Fir IFIywooi liirat
rail login Monday
n .
,
SJgpRiBUNE
- United PretruU Leased Wire .
Ltd Dim
c t
Ausland v. Construction Co.
Grants Pass. '
manager, and his family have
moved . to Medford, and other
officers of the company plan to
move here later. All were with
the Southern Oregon Plywood
corporation in . Grants Pass be
fore they resigned to form the
new company.
Besides Van Duker and Jacob-
son, they include Ernest Clark,
production manager, Ray Hen
ry, logging manager, and Arthur
Michelson, maintenance superin
tendent and engineer.
Behind Ross Mill V ' :
The new plant will be locat
ed behind the Ross Lumber com
pany, which is just beyond the
turn in Highway 62 about a mile
southwest of the Camp White
domiciliary center.
Plans -for the mill, which
were first announced last Dec.
16, call for the employment of
some 100 to. 110 men, with an
annual payroll of about $500,
000, and the expenditure of an
other $500,000 annually for the
purchase of logs for the rough
plywood to be manufactured. .
House Passes Bill
On Legislative Pay
Salem U.R) The House to
day passed its first bill, House
bill No. 1, which provides mon
ey to pay- legislative salaries and
expenses. Approval was unani
mous. At the same time Dr. F.; H.
Dammasch (R.-Portland) intro
duced a bill that would provide
for an advance of $300 to mem
bers on their second year's sal
ary. Legislators receive $1200
per biennium. ?;;
The House received and -tabled
four bills passed at the 1953
session but vetoed by the gover
nor! The bills included the tim
ber privilege tax involving tim
ber on mining claims; the requir
ed removal of brush and debris
on beaches by the state highway,
commission; a requirement for a
public vote on development of
public housing projects by cities
or counties, and the investment
of funds held by inmates of pub
lic institutions. - i -
A bill to give state police per
sonnel the right to appeal to the
state civil service board in case
of dismissal was introduced in
the Senate by Sen. Monroe
Sweetland of Milwaukie and
Norman R. Howard of Portland,
both Democrates. " ; :; '
FORECAST: Considerable
cloudiness through Thursday.
'Some valley tog Thursday
morning-. Low tonifht 25:
- hih Thursday 4S. $
- .Temp.
. Highest Yesterday ' ' - Jg
Lowest this Morning 28
of
Price 5c No- 254
Ado
15 Persons Killed;
Wreckage, Bodies
Videly Scattered
Pldnes Smash
Near Cincinnati
; Cincinnati U.R) A Trans
World Airlines plane and a .pri
vately owned DC3 aircraft col
lided in flight and crashed- in
flames near here today, killing
15 persons.
TWO officials said that 13
persons, 10 passengers and
three crew members, - were
aboard its twin-engined Martin
202. The plane had left the
Greater Cincinnati Airport en
route to Dayton, Columbus, and
Cleveland. '
The passenger list, released
by TWO in Chicago,, included
only one from the West. He was
listed as H. Rooney of Lewis
ton, Ida.
'. The twin-engined DC3 was
owned by Castleton Farms,
famous Lexington, Ky.; harness
horse farm. It was en route from
Battle Creek, Mich, to pick up
the farm owners, M. and Ms.
Frederick Van Lennep, to take
the socially prominent couple to
Florida. The pilot, Arthur Werk
haven, and co-pilot Eddie Anger
were killed.
Planes Catch Fir
Kentucky State Police Detec
tive Robert Gordon, one .of the
first officers to the scene, said,
'It looks like everybody , is
dead." . , .
Gordon said the nlanes ap
parently : caught fire after ; the
collision and were iflaayy, whf n
they hit th : ground,' about a
mile anart. He said parts of the
planes and bodies were scattered
over a wide area.
There was no immediate ex
planation of ; what ; caused the
collision.
In New York, the Civil Aero
nautics Administration said an
unofficial report from the Great
er Cincinnati Airport was that
the TWA plane was in radio con
tact with the airport tower by
radio two minutes after the
takeoff.
The CAA said TWA pilot iden
tified the plane, then . sounded
as . if he were . alarmed, anen
his voice faded away.
The collision was about two
miles south of the Greater Cin
cinnati Airport, which is in
Kentucky about 12 miles from
Cincinnati.
Howard Crisler. owner of the
farm on which . the planes
crashed, said that the TWA
plane hit the top of a hill and
hounceH into a wooded ravine
leaving a hundredyard trail of
wreckage.
TWO officials in Washington
said the accident was the first
crash in its domestic service since
December, 1944. The company
said that since the airline had
flown 14.221.567,045 miles with
out an accident, carrying more
than 18,000,000 passengers.
Congress Taking
Sides for Battle
Washirieton (U.R) Battle
linp.o Vtpean for'minff in Congress
today on the issue of pay raises
for its own members, ior gov
ernment workers and ior ; tne
military.
There were : these '. develop
ments:
1. Most Republican members
of the Senate were reported
ready to approve a hike in con
gressional, salaries. ...
2. Opposition mounted to.tne
President's .. renewed. . proposal
that mail rates be increased to
finance a raise for postal work
ers. . '
a. Thp President prepared to
send Coneress Thursday a mes
sage giving details of his pro
posal to grant salary increases
to military men with more than
two years of service.
DOW-JONES AVERAGES-
New York -(U.R) Dow-Jones
final stock averages: 30 indust
rials 399.78 off 0.47; 20 railroads
144.28 off 0.72? 15 utilities 62.64
up 0.07, and 65 stocks 148.88 off
0.29. Sales today were about 3,
400,000 shares compared : with
,680,000 shares traded yester
day., -
Portland J(U.R) The Western
States Republican Conference
has been invited to hold its 1955
meeting in Portland. z ":
Wavy LFDSers
ia-Mc Say ddh
Berlin U.R) An American freed from al
most 10 years enslavement in Soviet prisons
said" on Tuesday night fellow captives had told
him eight U.S. Navy fliers survived a Soviet at
tack over the Baltic sea four, years ago.
.y John H.' Noble, 31, of Detroit," informed offi
cials that he heard the fliers, crewmen aboard a
Navy Privateer downed by Soviet aircraft April
8, 1950, were in Russian hands. Two others died,
Noble said he was told.
Noble said the reports claimed the surviving
airmen were either in the Vorkuta slave labor
complex in the Arctic, where he heard the infor
mation, or would be taken there.
Russians Circulated Death Report
He said the Soviets attempted to suppress this
news because the Russian; themselves had cir
culated reports that all 10 airmen had been
killed in the incident which brought strongest
protests from the U.S. State department.
. Noble emphasized that he did not see any of
the fliers. He said only he' had "heard" that air
men shot down over the Baltic and some Ameri
cans captured in Korea were in the frigid Vor
kuta complex. ; j
If the reports Noble heard were true, the
Eliers probably were convicted on "spy" charges
as in the caseof 11 U.S. airmen who were shot
Peace and Prosperity for World Is Aim
Of Itinerant 'Santa'i Plan 'Can't Fail'
Christmas season would be the
whole year around if a plan pro
posed by Albert S. Falk should
be adopted by nations through
out the world.
Falk, 63, a plain-clothes Santa
Claus, was in Medford today
in the interests of spreading his
plan to end poverty and bring
world peace.
The blonde bearded self-styled
prophet's idea is simply this:
Apply a two per cent federal
tax to all transactions, ; plus a
small income ' tax. : That : way
enough money would be raised
to pay back - to all adults 21-
years and older a sum of about
$100 per month. This would be
in addition to salaries and other
income." This would eliminate
poverty by giving collective se
curity, Falk maintains. Each
family would receive a , mini
mum of $1,200 to $1,500 in guar
anteed income yearly. .
Falk would have each country
take care of its own people, thus
eliminating the continual drain
on the United States for upkeep
of. starving people ,abroadB.ut
putting money in the pockets or
people, they would then be able
to buy the many things they
may now be aiming to sell else
where, he claims,
1 Currently on a jaunt from
Minnesota to Sacramento, Calif.,
Falk, a painter and paperhanger,
started his! travels lobbying for
peace . in the. early 1930s. His
Pressure Credited
For Soviet Action
X Washington U.R) -U.' S.' offi
cials said tod ay unceasing
American pressure apparently
forced Russia to its sudden deci
sion to free the last three Ameri
cans known in Soviet hands.
They said Russia 1 probably
would have left the trio in So
viet labor camps much longer if
Ambassador Charles E. Bohlen
had not hammered at the Krem
lin door repeatedly during the
past year. " :- XI - '.'
The Soviets agreed yesterday
to turn over to American author
ities in Berlin - Army. Pvt. ; Wil
liam A. Verdine, 28, of. Starks,
la., who is believed to have been
held by the Russians almost six
years. " .
Eisenhower Silent
Washington (U.R) President
Eisenhower, at his news confer
ence today, was not asked for,
and did not volunteer, comment
on v new recommendations by
Adm. Arthur W. Radford, chair
man of the Joint Chiefs of
Staff, for a blockade of China if
the" Reds fail to free the jailed
Americans. Mr. Eisenhower has
said before this would be an act
of war. ' -
Nor 'did the President com
ment on the just concluded mis
sion to Red China by Day Ham
marskjold, U. N. secretary-general,
who met with Chinese
Communist . leader Chou : En-lai
in an effort to win freedom for
the prisoners. The, White House
has remained silent on the Ham-
marckjold mission,"
Edith Green Assigned
To Education, Labor
Washington JJ0 Mrs. Edith
Green, : Oregon's 'new Demo
cratic congresswoman from
Portland, has "jeen assigned to
the Education and Labor com
mittee of the House of Represen
tatives. . ' '
j. Mrs. Green's appointment was
confirmed by the House today;
The committee was the congress
woman's first choice. .
Mrs. Green said she had been
asked to serve on the District of
Columbia Committee, 4 but had
declined in order to devote more
time to the major committee as
signment. -j ' - -
toft
OTDteft
aim is a world peace mission.
He has visited every state in the
nation, and hopes, to travel j in
4 : 4 vi i ALBERT S. FALK '
4 Seaks Ptaca and Plenty
Europe next year if 'he has funds
enough; OHherwisheiwill .-gO1
central America.
He insists his plan is not Just
another . "crackpot" :. idea. ; "It
can't fail,"; he says. : "'; :' f
Falk has worn a' beard for
about ? f our . . years, ; about : i the
Rates Approved
Portland U.R) Oregon mo
torists ' may save - an estimated
$155,000 on "reduction in fire,
theft and collision automobile in
surance,.' approved Tuesday by
Robert B. Taylor, state insurance
commissioner.; "6- ' ' - .1
T h e ' National !. Automobile
Underwriters Association made
the reductions on behalf of its
member- companies. About ; 175
member companies do business
in Oregon, Taylor said. -pj;-.
The new rates are retroactive
of all policies issued on or after
Dec. 1. $100 and $50 deductible
collision insurance will go down
about six per cent in Portland
and about 5V per cent in the
rest of the state, the insurance
commissioner said. . '
. Rates on fire, theft and com
prehensive insurance have been
cut about 15 per cent. The coast
wise slasn leaves out some 75 in
dependent companies doing
business in Oregon, but they are
expected to adjust their rates to
meet; the competition. .
Salem 1 (U.PJ The Oregon
State Land Board has an
nounced the appointment v of
Alva C. Goodrich of Bend as
attorney for the- board. .
P
Lower Insurance
Legislators Attend School
To iVlake Them Experts on
Salem (U.R) Oregon legisla
tors went to school today a tax
school designed to make tthem
experts on taxation in. 22 not so
easy lessons.. i
With revenue problems slated
to be one of the biggest issues
before the 1955 legislature, Rep.
Loran L .Stewart, chairman of
the House Taxation Committee,
arranged for a series of lectures
by tax experts to give legislators
the fundamental of tax princi
ples to guide them as they .tackle
a mass of complex fiscal matters.
Senators have been invited to
attend the "school." ;, " r y r
Seminar Thought Good - v k;
House , Speaker .Edward A.
Geary urged the representatives
to attend the tax seminar when
ever possible. Senate President
Elmo E. Smith said he thought
the seminar was especially good
for - new , members , unfamiliar
with . tax committee . work, . but
was 'excellent for all. ; . .. .
First speaker at today's open
ing session was ur. u ward
Macy, head of the economics de
partment at - the University of
m vec
Klaoiidls
down in uniform during the Korean war and
Jailed by Communist China on espionage allega
tions. ;-'
The Soviet note on the Baltic plane incident,
like Red Chinese Premier Chou En-lai's blast at
the United Nations, claimed that the fliers had
violated Communist territory. :
It said the Privateer, erroneously identified
by the Soviets as a B-29, violated Communist
territory south of Lepaya, Latvia, and failed to
obey the order of Soviet fighter planes to land.
Violation of Tarriory Denied .
; The United States charge that the plane had
not violated Soviet territory .and was unarmed
when attacked. '
The crew of the' Privateer, all of whom re
ceived posthumous awards was composed of Lt.
John ' Henry 'Fette, Connellsville, Pa., and in
cluded Lt. Howard William Seeschaf, Fairling
ton, Va.; Lt. Robert Duward Reynolds, Dansville,
N.Y.; v Ens. Tommy Lee Burgess. Osawatomie,
Kan. Edward ' Joseph Purcell, Southwestville,
N.J.; Jack William, Thomas, Stillwater, N.J.; Joe
Henry Danens Jr., Cutbank, Mont.; Frank Llovd
Eckman, Newport, Ky.; Joseph Norris Rinnier
Jr., Philadelphia and Joseph J. Bourassa, Lin
wood, Mich.
length of time he has campaign
ed for his plan on an interna
tional basis. . The idea for wear
ing the beard is to attract' at
tention. He says it does, and that
children call him "Santa Claus."
Falk, who, calls Wheaton,
Minn., home, campaigned for
president in 1952. He plans to be
a Republican candidate in 1956.
He admits that being president
and commander-in-chief of . the
Armed Forces may not be con
sistent with his peace aims, but
says he would leave the Army
and Navy up to the Military,
and would work for world dis
armament. Old Bank Building
Remodeling Slated
Remodeling jof the former site
of n the Medford ; branch of the
First National Bank of Portland
will begin in about 10 days, ac
cording to Ben Dierks Grants
Pass lumberman who- purchased
the building.
" The bank moved from the old
quarters to its new building last
week end. ., "
, Dierks said today the ground
floor will be remodeled to. acco
mmodate two stores, and a mez
zanine floor, will be added. Ne
gotiations with two organiza
tions for lease of the space are
now under way, Dierks added.;
The lumberman also announc
ed the recent sale of the lumber
mill and timber holdings' of the
Ben Dierks Lumber Co., Inc.) of
Murphy, to Joe M. Crahane and
his associates. The operation is
a modern band mill, built in
1951. A new firm, Conifer Wood
Products, has been formed - to
take over, the operation.
. Dierks retains the name of
the company, and has moved its
office from Murphy to the First
National - ban k building, in
Grants Pass. ' . " "
Washington U.R) Tha
: govarnmant ';' plans to bagin -distribution
. of ' from $6,000,
000 to $9,000,000 in Impound
ed timber sale receipts to 18
counties in Oregon, it was re
ported today. v-. ";t;-
Tha receipts have bean held ?
for 12 years pending court ;
fights - over the distribution '
formula ,: .
San Francisco U.R) Di
rectors of tha Pacific Coast
league . today named Claira
Goodwin, prominent Oakland :
civic, sports and financial fig
ure,' president of tha loop.
Oregon,
The seminar will be conducted
through' Feb. 10
The House met at the regular
time, of; 1.0 a on.; today, but the
Senate moved its opening up to
9 ajn. because, of a hearing be
fore the Oregon .Supreme Court
at 10 a.m. concerning the consti
tutionality of a controversial
labor, bill passed in 1953.
Challenged in Courts ,
: ' That bill had some anti-picket-lng
provisions in it which were
challenged in the courts. Circuit
judges independently arrived at
the conclusion -that section 17 of
the.bili, regarding picketing, was
unconstitutional. The matter was
appealed to the Oregon Supreme
court, and that was the hearing
Three bills introduced in the
uouse at the afternoon session
yesterday came from the com
mittee on financial institutions
w Tevue statutes affecting, in
surance companies doing busi
ness in Oregon.
One would nprmit Buspension
BoaDDeQaims
- - : . -- . '
f or not more than a year of in
Important Rail,
Communications
Town Recaptured
Road Gangs Reported
Subjected To Attack
San Jose, ' Costa Rica (U.R)
President Jose Figueres said to
day rebel invading planes have
strafed 10 Costa Rican towns,
including this capital city, in the
nation's twodays-old rebellion. '
He said his own land forces,
meanwhile, have recaptured the
important railway and com
munications center of Villa
Quesada from the insurgents in
sharp fighting. Villa Quesada is
50 miles from Sari Jose.
Figueres, in an interview with
the United Press; said the in
surgent forces were "completely
destroyed" in the battle which
regained for Costa Rica the rich
est prize to fall to date to the
insurgent, forces.
; The president said to the best
of his . knowledge no persons
were killed or injured in the air
attacks . on "innocent civilian
people." .
Americans in Danger
Road gangs and American
provided equipment working on
the U. , S.-supported Pan-Ameri
can Highway also were reported
subjected to air attack. "
In Washington, the Bureau of
Public Roads said that 13 Ameri
cans, technicians and engineers.
are working on the Pan-American
Highway in Costa Rica.
"It was reported in Washing
ton that one vehicle carrying
workers on the road was machine-gunned
and the windshield
was shattered. It was not learned
whether the workers were native
or U. S. citizens. No one was re
ported injured.
President Confidant '
' President Figueres Indicated
he was confident the rebellion
will , be , crushed. But he con
firmed, there are ."indications"
the tiny border port town of
Puerto Soley was taken by rebel
forces during the night.
' The ; President said ha wat
awaiting the arrival of the Inter
American" Commission here to
"ay, - ' 'm -
I " Washington (U.R) President
f 1 . t j u ttm i..
Xiisexuioweir saia wixay uic win-
ted States will have nothing to
say tn the dispute between
Costa Rica and Nicaragua until
a special Inter-American. Com
mission has made ' its on tha
spot investigation.
The President pointed out at
his news conference that tha
Knecfal five-man commission, ap
pointed by the Council of tbs
Organization of American states
left' Washington by plana for
Costa Rica today- . ,
Protest FPC Action ,
. Washington U.R Oregon
senators today protested tha
"high handed action" of thai
Federal Power, Commission - in
allowing the, Idaho Power Com
pany to change plans for ae
voinnment of Hells Canyon after
the company filed its original
application. -
The company has applied for
licenses for three low dams in
the canyon, on the Snake river
Sens. Wayne Morse (Ind-Ore.)
and Richard L. Neuberger CD-
Ore.) favor a single government
dam in the canyon. ; .;
After the close of an FPC
hearing, they said, "the commis
sion is permitting the company
and the commission staff to jug
gle and re-write the company
plan . . . this is high handed ac
tion which places an intolerable
burden upon the intervenors ad
vocating the high dam." ;
Designed
Tan Problems
surance agents and solicitors
guilty of violating the state insur
ance code. Present law calls for
outright revocation of their li
censes. The other two measures
would stiffen the requirements,
for insurance companies and tme
insurance companies, incresslng
the paid up capital requirements.
Three Bills in Senate v
Jhree bills ;werttiiS:
duced in the nate jesterday
afternoon. Two, introduced by
Senl Francis W. Zlegler Cor
vailis would correct dates. One
wouW make the date for veter
n. oreanizaUons to file reports
SmoSeyout of county ifidigent .
i" th fourth Monday in
July instead of Jan. 1, so that the
report comes after the counties'
teal year has started.- Another
would provide for refund of cer- -:
tain ' license, monies to dairies. .
The old license expired May 30
but this was changed to coincide
with the state's fiscal year, which
starts July 1, and this bill would
merely enable the -dairies to be -
repaid the overlapping license
money.