Image provided by: University of Oregon Libraries; Eugene, OR
About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Dec. 13, 1955)
o o W Q tj I 21 I o o M EDFORD 50th Year 28 Pages Recovery of Expenditure on Contract Sought To Force Ruling On Pact Validity Washington (U.R) The Dixon-Yates interests filed suit against the Atomic Energy Com mission today to recover $3,534,- j73 spent by the private util ity combine on the concelled Dixon-Yates power contract. The suit was filed in the U.S. Court of Claims here by At torney Daniel James, represent ing the Mississippi Valley Gen erating Co. That was the firm formed by the Dixon-Yates in terests to carry out the con troversial power contract. Declared Invalid The AEC, which once approv ed the contract, declared it in valid on Nov. 23 because of a possible violation of the conflict ($t interest law. It said it would make no cancellation payments. The alleged conflict of inter ests, which the AEC claims made the contract illegal from the start, refers to the dual role played in the contract ne gotiations by Adolphe Wenzell. Wenzell served both as a con sultant to Jhe government on the contract, and as an execu tive of the First Boston Corp. which handled contract finan cial arrangements for the Dixon Yates combine. One effect of today's suit will be to force a court ruling on this question of the contract's validity. If the contract was valid, presumably the Dixon Yates interests will be entitled to collect from the government to cover their expenses on it. Mississippi Valley is owned by the Southern Co. and the Middle South Utilities Co. E. H. Dixon is president of Middle South as well as Mississippi Val ley. E. A. Yates is chairman of Southern Co. " " The combine was to have built a $07,250,000 power plant at West Memphis, Ar., to sup ply power to th, TennesseeVal ley Authority To replace TVA power being supplied to AEC plants. Warehouse, Shop Destroyecl By Fire Fire destroyed a warehouse and repair shop behind Orchard HomeGBuilder Supply company about two miles north of here on Highway 62 about 7:25 p.m. yesterday. State police, who notified Medford Rural Fire department, saidPa truck, automobile parts, tools and other items were de stroyed. Firemen said the building was owned by P. L. Rushton, 2235 ' Prune St., and Eugene Foresee, 2814 Crater Lake highway. The building was engulfed in flames when firemen arrived with two pumpers. . The building was about 54 by RJ. feet, and was of irame type obstruction. Cause of the fire had not been determined early today. An adjoining lumber yard and other nearby buildings escaped damage. Firemen also were called to 2495 Jacksonville highway about 2:30 p.m. yesterday when fire extensively damaged a house trailer owned by Ted Shura. Firemen said slight damage was done to a neighboring trailer owned by Eldon Burgess. Cause of the fire had not been deter mined. ) One pumper was dispatched to the Charles Hermann, resi dence, 2222 Loaha ave., about 11:51 p.i yesterday to check an overheated oil stove, and at 6:55 a.m. today firemen were called to the home of Mrs. Marie Disney, 825 East Jackson St., to check cause of smoke in the house. No damage was reported in either call. DOW-JONES New York (U.R) Dow- Jones final stock averages: 30 Industrials 484.29 up 0.57; 20 railroads 162.78 off 0.96; 15 util ities 65.35 off 0.10 and 65 stocks 172.30 off 0.23. Sales today were about 2,430,000 shares against 2,510,000 shares traded yester day. o MEDFORD, OREGON, TUESDAY, DECEMBER 13, 1955 r. John Bonn, Germany (U.R) Dr. Otto John, former head of West German security, returned to the West today under circum stances as mysterious as his original flight to Communism 17 months ago. John fled across the Little Iron curtain sector border in Berlin yesterday and surrender ed to West Berlin authorities. Last night he was flown to Bonn and handed over to intelligence agents in such secrecy as to cast doubt whether his role remain ed that of traitor or master spy. Wife Disappears Just as mysteriously, his wife disappeared from her London apartment. A maid said she left at 11 a.m. yesterday without in dicating her destination. Lon don sources said she may have been forewarned of her hus old Ins ' BICARBONATE, PLEASE James Calloni, 56, a Wood land, Cal., rancher, is crowned Steak Derby Champ by Jean Kessey (Miss San Francisco) after winning the first annual Steak Derby at Alfred's in San Francisco. He bested a field of eight by downing four two-inch thick, pound and a half broiled New York cuts in six minutes and 36 seconds. Turncoat Tenneson Arrives in Hong Kong Hong Kong U.R) Richard R. Tenneson, 22, crossed into Honk Kong today from Com munist China and said he turned his back on the United States because his stepfather "used to beat and whip me" back in Alden, Minn. The one-time private first class in the U. S. Army said he also chose Communism because he disagreed' with Army policies and because he believed "a bunch of American Generals" practiced germ warfare during the Korean war. Tenneson was one of 23 U. S. soldiers who were captured by the Chinese Communists during the Korean war and declined to return home when the fight ing ended. One changed his mind almost immediately. An other died in Red China. Three changed their minds last July. Tennesson said he had seen the remaining turncoats recent ly and "I guess they all will come back sometime." But he brought out a message from former Pvt. James G. Veneris of Hawthorne, Calif., that "I'll be in China another 15 years." Peiping announced that Ten neson would be released on Nov. 30 but instead he became a pawn in the cold war. The Communists, in their drive for world recognition, would re lease him only to an American official and none could take TRIP' Return band's return and had gone to join him. The 46-year-old John plung ed the Allied world info crisis when he went over to the East German Reds in 1954. It was feared he might betray Western intelligence secrets to the Com munists. The reasons for his return flight were not known immed iately. Speculation Mounts Chancellor Konrad Adenauer, informed of John's return, said he must have been driven hard by fear of his fate at the hands of ' the East Zone Reds with whom he sought asylum on July 20, 1954. But speculation mounted, though without official support, in Bonn, that perhaps he had been sent deliberately by the Bonn government to the Soviet him then. Today he was "accepted" by American Red Cross Representa tive Richard Tomlin who was with British Representative Margaret Strathie. U. S. Consul S. M. Backe interviewed Ten neson briefly and said the turn coat was still an American citizen. (See Story on Page 4, See 2) Budget Committee Meeting Postponed A budget committee meeting scheduled for 7:30 today has been postponed until 7:30 p.m. Wednesday. The change was necessary when the Medford planning commission adjourned its Mon day night meeting to tonight because of a lack of a quorum. Help Fight TB - Buy Christines Seolt e Jo b' Hinted Price zone as a fake political refugee in one of the most daring "in side jobs" in the history of es pionage, and that now he had returned loaded with the Reds' innermost secrets learned dur ing his months behind the Iron Curtain. Went of Own Will The square-jawed spy special ist who once helped plot the death of Adolph Hitler in the abortive bomb plot of 1944, en tered the Soviet zone of Berlin, in July, 1954, and soon after ward told a press conference he had gone of his own free will. There was no indication as to whether he fled back to the West as a disenchanted traitor who had got a belly full of Com munism or whether he had been working as a double agent all the time. West German officials withheld comment. Syrian Government To File Complaint On Israeli Raid Jerusalem (U.R) The Syrian government decided today at an urgent Cabinet meeting in Damascus to lodge a strong com plaint with the U. N. Security Council against an Israeli raid which plunged the Middleast into new crisis ' ' - - - . Defense Minister Rashad Bar mada appealed to the nation for calm, but Syria-wide demonstra tions against Israel and against the "lenience" of the Big Three underlined the anger of the Arab nations against the Jewish state. Strong Protest Voiced The Syrian press voiced strong protests against the United States, Britain and France for what the newspapers called a "lenient attitude that encourages Israel to commit further aggres sions." ' AH front page editorials in the Damascus newspapers urged the Syrian government and peo ple to double their efforts for financing large scale armament projects since the "Western pro Israel attitude -. leaves no other alternative." A United Press dispatch from the Israeli Ein Gev settlement on the northern short of the Sea of Galilee said Syrian forces were returning to the positions blown up by Israeli raiders Sunday night. Klamath Falls (U.R) Law rence J. Horton, Poe valley rancher, has .been named cat tleman of the year for Klam ath, Lake, Harney and Malheur counties. s To West; Local Retail Merchants Indicate Christmas May Exceed Last Year's Record-Breaking Medford retail merchants, with a few dissents, this week declared that the 1955 Christ mas shopping season will prob ably exceed the record-breaking volumes of last year. This conclusion is based on discussions with leading Med ford retailers, and with bankers who are familiar with business activity in general.. Of those queried, only a few merch ants indicated their volume of business was not above that of a year ago. One observer, a banker, point ed out that the fruit crop was much curtailed last year by a spring freeze, and still the Christmas business was as good as any in history. This year, with a good fruit crop and the lumber business at a healthy level, there is no reason to ex pect that the '55 season would not exceed that of '54, he de clared. Starts in November Another banker said it is his impression that both volume and sustained interest in shop ping are higher than a year ago. Active Christmas shopping be gan in earnest at about Thanks giving time, rather than wait ing until December, h said. No M dther . RECAST: Fog or low over f cast tonight and Wednesday morning. Increasing high cloudiness Wednesday after- noon. Low tonight 35-38; high Temp. Highest Yesterday 5i Lowest this Morning 45 Nationalist China Seeks Backing in Blocking UN Deal Formal Announcement Of Veto Plan Withheld United Nations, N. Y. (U.R) Russia today vetoed South Korea for membership in the United Nations. Soviet Delegate Arkady A. Sobolev also vetoed free Viet Nam. United Nations, N. Y. (U.R) Nationalist China today ap pealed "to all delegations to join in making 'a last fight for the preservation of the United Na tions" by blocking an 18-coun-try membership package deal. . Chinese Ambassador Tingfu F. Tsiang avoided making a for mal announcement to the UN Security Council that he would veto Outer Mongolia, or any oth er of the four Communist coun tries under consideration. But he urged all members "to muster enough courage to stand up to the Soviet Union and say we will not be dictated to." Russia Steps Aside Tsiang spoke after Russia yielded to the West on proced ure for approving new mem bers. Soviet Delegate Arkady A. Sobolev withdrew his demand that Russia's own resolution recommending 18 countries for approval by the General As sembly be given top place in the Security Council voting. Acceptance by the Security Council and the General As sembly of the 18-country pack age deal in its present shape, Tsiang said, "would be a total surrender to the dictate of the Soviet Union" and would change the United Nations into a "rub ber stamp" for the Russians. Britain's Sir Pierson Dixon told the council his delegation would vote for all 18 countries, despite "reservations" about Al bania and Mongolia. Despite official, optimism, es pecially among the Western powers, that most of the 18 ap plicants under consideration would gain admission, UN ob servers saw litlle chance that any would make; it. China Promises Veto Russia has announced it will wreck the deal if any of its can didates fail to gain election. Na tionalist China has said it will veto Communist Outer Mongol ia. The situation was further complicated by Soviet demands for an iron-clad guarantee that Communist nations approved in the Security Council will not be voted down in the General Assembly. The Soviets want each council-approved application to be sent to the General Assembly, meeting in concurrent session, for a vote before the Security Council goes on to the next ap plication. vember was a bad month for durable goods furniture and appliances mostly possibly be cause property tax bills were mailed out then, he said. But he believes it has picked up since and is holding up. These impressions were sup ported by comments from many merchants. One, in a women's shop, said the season began be fore Thanksgiving for the first time, and that tastes seem to run to more expensive items. Volume Up Another, in the same line of business, agreed that volume is up and that the beginning was earlier, with the range of val ues in demand about the same. The urging to "shopp early" ap parently had its effect this year, she said. Two other merchants, one in a women's wear shop and the other in a chain department store, indicated the volume was about the same, although the latter said he has the biggest stock and best selections av ailable ever. He commented that people "don't seem to have the Christmas spirit." One locally-owned depart ment store, on the other hand, indicated that November tales Ford Foundation Allotments Lauded By Recipients Improvements Seen In Medical Care New York (U.R) The Ford Foundation made plans today to distribute a record $500,000,000 to 4157 colleges and hospitals and recipients hailed the grants as a tremendous contribution to the progress of medicine and education. Secretary of Education Marion B. Folsom said the funds, the largest in the history of philan thropy, would "contribute sig nificantly to the well being of the American people." Surgeon General Leonard A. Scheele said the hospital and medical school contributions would "result in improvements in medical care for persons in all parts of the country." Privately supported colleges listed for sizeable contributions were particularly strong in their praise of a provision which would make possible consider able salary increases for profes sors. Go Into Endowments Chancellor Henry T. Heald of New York University said "this tremendous gift to American colleges and universities is the greatest thing that has ever hap pened in educational philan thropy." The grants must be placed in endowment. If distributed across the board to all faculty members the income could provide an es timated 4 per cent salary in crease for every teacher in every privately supported four-year college in the country. The 126 colleges which received a "bonus" grant may be used for other than salary purposes. Low Pay Scales The Ford Foundation said the funds would be distributed dur ing the next 18 months. The record contribution brought to nearly 31,000,000,000 the amount granted by the Ford Foundation since it was established in 1936 with profits made by the Ford Motor empire. The Ford Foundation said it decided to contribute toward raising teachers salaries when a survey showed that railroad engineers made more money than professors. The survey report, prepared under the direction of tax ex pert Beardsley Ruml, said that coal miners had been making more money than instructors at large universities, $4698 com pared to $3700. Telephone oper ators receive about $500 a year less than professors. (See Stories on Page 4, Sec. 2) Corvallis Jury Debating Reyes Fate Corvallis (U.R) The fate of Martin Reyes,. Seattle, went to a jury of nine men and three wom en shortly after 11 a.m. today in Benton county circuit court. The state asked the death pen alty for the youth accused of the fatal shooting of James Apple gate in Corvallis in October. The court gave the jurors five choices of a verdict: First degree murder with a death sentence; first degree with life imprison ment; second degree with a jail sentence up to life; manslaugh ter with a sentence of up to 15 years and a $5000 fine, or not guilty. were far ahead of last year. and that December so far is about the same, with the net apparent result that there will be a considerable increase in business. Later" Than '54 Another chain department store, however, sajd buying is later than last years, and at about the same level. Buying is more in the necessities clas sification than in luxury items, it was indicated. Another local department store said December buiness is "about nip and tuck" with that in 1954, but indicated expec tation of an upturn during the last two weeks and an over all increase. ... Two of the men's stores in town were highly pleased and optimistic. One said business is 22.9 per cent above last year, with the higher-priced items going well. The trend, the manager said, "is for the women to make their men more beautiful." He added that the season started three days before Thanksgiving whereas it usually starts the Friday following Up 20-25 Per Cent The other man's stores report Total of $60,50 j m mm n a i Allotted: urn Rolf 030 Medford's two accredited medical hospitals have been tenta tively allotted a total of $60,500 in Ford Foundation grants, it was reported today. The gifts were "entirely unexpected," according to the admin istrators of the Rogue Valley Memorial (Community) hospital and Sacred Heart hospital. Officials at both institutions declined to speculate on the sudden windfall until they know more about the grants and the circumstances under which they may be made. The allotment for Sacred Heart hospital is $34,000, and that" for the Rogue Valley Memorial hospital is for $26,300. Allotment of funds is based on the number of patient days of care, plus the number of births, at each hospital. The grants are part of a total of $4,653,200 allotted to eight privately supported colleges and 42 non-profit hospitals in Oregon. The total for Oregon is itself a part of a half-billion dollar gift by the Foundation to colleges, universities, hospitals and medical schools throughout the United States. The sister superior at Sacred ; Heart hospital indicated, how ever, that the hospital has long needed an automatic fire sprin kling system, and that the mon ey may go toward this if it fits in with the purposes for which the money can be used. In announcing the grants to hospitals, the Foundation ack nowledged the growth of popula tion and the advances of medi cal knowledge have placed heavy burdens on the facilities of the voluntary non-profit hospitals. More beds are needed, it pointed out, buildings need replacement or modernization, new equip ment is needed, the scope of services need to be extended, and costs of construction are ris ing.. Grants range from $10,000 to $250,000 for each of some 3,500 voluntary, non-profit hospitals, which are those accepted for listing by the American Hospital association. Funds will be made available to the governing bodies of the hospitals to be spent in accordance with local needs and problems. The money can be used for im provement of or addition to fa cilities or services, additions to or training of personnel, or con ducting research. They may not be used for operating expenses for services currently being per formed. The beneficiary hospi tals must submit evidence of tax exemption, must submit prelim inary plans for use of the funds within three months, and report at the end of two years on use or projected use of the funds. The gifts to private colleges and universities are for increas ing faculty salary levels, and is based on a sum equal to the 1954-55 payroll in each case, and in the case of those institu tions which have led the way in improving the status and pay of its teachers, additional sums equal to one-half of the yearly payroll will be given. Here are the gifts listed for Oregon: College grants: Reed College: $391,400. Portland U.: $313,100. Lewis and" Clark: $277,800. Willamette: $216,600. Marylhurst College: $172,000. Linfield: $171,200. Pacific: $147,400. Mt. Angel Women's College: $51,700. Other hospital grants included: Albany General: $22,100. Columbia, Astoria: $23,400. St. Mary's, Astoria: $19,000. St. Elizabeth, Baker: $22,800. St. Charles, Bend: $30,700. McAuley, Coos Bay: $19,400. Good Samaritan, Corvallis: $28,200. Cottage Grove hospital, $18,- Buying Volume ed business 20 to 25 per cent better than last year early in the season, and by now about a third above. "It's the best year in the history of the store by a long way," it was reported. A third men's store said peo ple are not "buying to the lim it" as yet, and are "going down the middle" between inexpen sive and expensive items. There are still many "lookers," it was said. A fourth store for men's wear said the. trend was earlier and toward more expensive, quality merchandise. Optimistic View ".Two of three jewelry stores queried were optimistic, report ing good sales and volume. A third indicated it would be about as good as last year's record-breaking volume. A candy store said its business was up by a good 25 per cent in retail sales, with a 15 per cent increase in wholesale dis tribution of a locally - made brand of candy, and a 30 per cent increase in retail business outside of the city on the same line, with many orders going to all parts of the country and abroad. cia eculation Eisenhower Urges Democrat Leaders To Back Program Washington U.R) President Eisenhower urged Democratic congressional leaders today to support a national security pro gram which was revealed to in clude an expanded $35,200,000,- 000 military budget. Mr. Eisenhower also appealed for Democratic and Republican backing of the administration's foreign policy program, includ ing a $2,670,000,000 in foreign aid spending and a stepped up overseas information program. Plea Made at Conference Mr. Eisenhower made the" plea during a conference with Re publican and Democratic con gressional leaders on the defense and foreign policy programs the administration will submit to Congress in January. Mr. Eisenhower, in a frank bid for bipartisan support, ex pressed his "very real gratitude" to the leaders on both sides of the aisle "for the very greag contribution they have made and are making to true bipartisan ship." Optimistic Meeting Conferees reported afterwards that Mr. Eisenhower said the basic objectives of the expanded military program are to avert disaster in case of attack and to retaliate immediately. On the whole, however, the tone of the meeting was optimis tic, congressional leaders said. They said there was no indica tion of any imminent threat of war, although Mr. Eisenhower expressed dissapointment over the failure of the recent Big Four Foreign Ministers Conference at Geneva. 600. Sacred Heart, Eugene: $134, 500. Good Shepherd, Hermiston, $11,900. Hood. River hospital: $16,100. Grande Ronde, La Grande: $16,500. St. Joseph, La Grande: $22, 300. Pacific Communities, New port: $10,000. Keizer, North Bend: $33,700. Malheur Memorial, N y s s a: $10,800. Holy Rosary, Ontario: $27,900. Hutchinson, Oregon City: $13,400. St. Anthony's, Pendleton: $54, 100. Emanuel, Portland: $216,200. Fairlawn, Portland, $25,300. Good Samaritan, Portland: $210,300. Holladay Park, Ptartland: $43, 700. Juvenile girls hospital, Port land: $27,100. Physicians and Surgeons, Port land: $65,600. Portland Sanitarium: $103, 400. , Providence, Portland: $141,- 500. St. Vincent's, Portland: $195, 000. Shriners, Portland: $36,100. White Shield, Portland: $10,000. Pioneer Memorial, Prineville: $14,000. Douglas Community. Rose- burg: $33,260. Mercy, Roseburg, $24,500.Q Salem General: $50,200. Salem Memorial: $55,600. Silverton hospital: $15,500. Santiam Memorial Stayton: $10,000. Langmack, Sweet Home: $10,- 000. Dalles General, The Dalles, $29,700. Harvey E. Reinhart, Wheeler, $10,000. Salem (U,R) Loring M. Grier, Salem business man, has been elected to the Salem city council to fill a vacancy created when Walter E. White resigned last month. O
