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W Q tj I 21 I
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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