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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Oct. 24, 1957)
TEN MEDFORD (OREGON) MAIL TRIBUNE Thursday, October 24, 1957 ver-Confidence in National Economy Blamed for Trend in Stock Market Editor' not: Ti Ttrmt fcrrak tn stocks, uhlch whittled S47.70i.0OO.0OO from paper valurt in the period from Jaly 12 I Ort. 11. has Ionised world attention on Wall Street. The follow ing dispatrh was written exclusively for the I nited Press bv one of the most astute market analysts in the nation. ing. This is especially true of trends in the stock market, be cause both favorable and unfav orable influences there tend to multiply and compound in the same direction. Here, as in other fields, post mortems are easier and more ac curate than prophecy. We should know by now that both investors and the business community for some time enjoyed a certain something that financial people and politicians like to call "con fidence." It was exceedingly pleasant and we drank of it till we became intoxicated with an over-optimism which was not realistic. No Time for a Change We did not think that credit authorities had the nerve to "do anything unpleasant" about in flation. We assumed that there could not be a big decline in stocks because the market was so much on a cash basis. We be lieved that expending research, increasing population and the many widely discussed built-in prophylactics against depression and recession assured indefinite prosperity, and that day by day in every way, things would con tinue to get better and better. What's been happening of late, it seems to me, is a reaction from an expanding economy's most serious threat, over-confidence. Economic man still sins; and when he sins, retribution fol lows: A few months ago most every body was "against" inflation, and in favor of "doing some thing" about it. The credit au thorities have done something about it. Federal Reserve policy has be gun to hurt, so it has begun to be effective. Political and busi ness pressure probably will cause credit policy to be re versed, but the reversal will carry with it a time lag just as the tightening did. Earnings Trend Downward The nearby corporation earn ings trend is downward and the trend in the evaluation of earn ings is less imaginative and more realistic. That, I am sure, will become more and more evi dent as the months pass. Busi ness men will spend less lavish ly for capital improvements; jobs, for a time, may be less plentiful. This is not a time when funda mental values count as much in the establishment of stock prices as passing supply and demand factors. The long inertia of com mon stock ownership, to which capital gains tax inhibitions con tributed so largely, has been dis turbed. More and more people are thinking about making changes. We still do not know how this new generation of investors and speculators, who never until now have known anything but pleasantness in the market, will act when experiencing unpleas antness. Markets "Thin That markets are amazingly "thin" in indicated by the small volume of daily transactions in relation to New York Stock Ex chage listings of nearly five bil lion shares. A little selling or a little buying has a big price in fluence. It seems to me that potential investors should welcome rather than deplore this revision in equity market values. Stocks for the past two years have been too high to be attractive to the pru- d e n t investor. Conscientious analysts have found it difficult to enthuse about anything'. This has begun to change. The main difficulty at the mo ment is to know just how far the correction in the economy will go, how much earnings, divi dends and price-earnings ratios will decline and how high yields will become. As the picture clears, there should be plenty of time to make intelligent selections leisurely. In the stock market, it always takes more time to build than to demolish. By L. O. HOOPER Manager of Research for W. E. Huilon 8c Co. New York Without mean ing to do so, most people as sume that a trend, once estab lished, will continue indefinitely. They are surprised when it does not and then wonder why they did not see the change com Vall Street Thankful For Few Margin Calls During Recent Break Bt ELMER C. WALZER United Press Financial Editor New York 1fl Wall Street is thanking its lucky stars that with margins high there were relatively few margin calls in the recent i w. J. ; .& break t n a t knocked the in dustrial aver age down 100 points. Almost at the same time, there is a drive Elmer Waizar in the Street to cut margins which have been at 70 per cent of the price of the stock since April 25, 1955. At that time they were raised from 60 per cent which had been in effect from Jan. 5, 1955. Before that a 50 per cent margin pre vailed from Feb. 20, 1953. It is noted that the stock mar ket was the first place attacked by the Federal Reserve Board in its drive against inflation through tight money. Should Be First Place ' Wall Street reasons that it therefore should be the first place in which there is an easing of credit. "After all," says Eldon A. Grimm, analyst for Walson & i li NEED A BETTER RIDING CAR? Test-drine a 58 Studebaker. Discover for yourself the ex- elusive Luxury-Level ride of Studebaker's variable rate front coil springing. ' Studebaker Packard 'DE' LEIGH MOTORS V 134 South Riverside Medford. Oregon f 'Co., "you can buy almost any- thing else with a small down pay j ment whether it be a house, an , auto or a vacuum cleaner. "It would make good sense if the purchaser of a stock were allowed to put up a 'more nor mal' amount than 70 per cent. After all, the basic idea is to at tract equity capital to allow the nation to grow again and keep up in the race against Commu nism." Those who oppose lower mar gins at this time hold that there is a big difference between buy ing things on the instalment plan and buying stocks. Seldom More Money Those who buy a house, an auto, and so on with a small down payment make monthly or other periodic payments and eventually pay up their debt. In the case of margined stocks, the buyer seldom puts up addition al money unless he is forced to do so by a decline severe enough to impair his account. These opponents of a drop in margins also note that Wall Street isn't logical in its ap proach. It is happy about the big margins which prevented a big ger rout than the market had in its recent break, and at the same time asks for lower mar gins that could bring woe in an-' other break, they assert. Angus Conference Slated For Fresno St. Joseph, Mo. Special na tional recognition for the Aberdeen-Angus breed's rapid west ward expansion is given by scheduling the Fourth Annual American Aberdeen-Angus con ference at Fresno State college, Fresno, California, on March 9, 10, and 11, 1958. This will give Angus breeders in the western states their first opportunity to attend a national conference in their home terri tory. Previous events have been held at Oklahoma State Univer sity, University of Tennessee, and Michigan State university. Cattlemen from more than half the states and. Canada have at tended each of these conferences. Fesno State college offers the facilities of a new campus for the three-day session. It is about halfway between Los Angeles and San Francisco in the San Joaquin Valley. Lloyd Dowler, dean of Agriculture, recently met with representatives of the Pacific Coast, Central Valley, Sacramento, Southern, and Am erican Angus associations to make initial plans for the affair. Official headquarters for the conference will be Fresno's Ha cienda motel. Visitors should di rect their room reservation re quests to the Fresno Hacienda, Highway 99 at Clinton. P. O. Box 1228, Fresno 15, California. The CLEANEST Rock and Sand Makes the STRONGEST CONCRETE And We Have Both! Always GOOD! J ar Li1 Oie Re-washed "Rocky" ADY MIX bv UNINGER'S BEST BY TEST Phone: SPring 2-5336 SPring 2-5897 MUrdock 5-8121 Name for Earth Satellite Suggested Charlotte, N. C. (IPI An entrant in a newspaper con test suggested the earth satel lite be named "city council" because: "(1) It goes around in circles; (2) No one seems to be quite sure how it works; (3) It makes silly noises and (4) Often it seems not so bright." 1 Asian Flu Said On Increase Among Adults in Oregon Portland HP) The State Board of Health today reported increasing incidence of suspected Asian flu among the adult popu lation with many cases reported from Malheur county in eastern Oregon. Dr. Grant Hughes Malheur county health officer, said about 30 per cent of the persons strick en there are adults. Flu cases are running from 10 per cent to 60 per cent of the population in areas of the county, he said. Dr. Hughes said some of the cases were having complications, including pneumonia. Nyssa Schools Closed Three grade schools in the Nyssa area were closed. In western Oregon the two Dayton schools were closed in Yamhill county for the rest of the week. A heavy flu incidence was re ported at Fairview home near Salem but so far the cases are mild, officials said. Absence in Portland schools continued more than 10 per cent Wednesday. At least two prep football games scheduled for this week end had been postponed Co burg vs. Harrisburg and Alsea vs. Perrydale. Dig Dahlias Now, County Agent Says Dahlias should be due after the first killing frosts, advised Don Berry, county horticultural agent. Remove the tops, leaving stubs about six inches tall, he sug gested. Then, lift the entire clump, being careful not to in jure the narrow neck which con nects the tuber and the clump. Otherwise a blind tuber may re sult. Shake or wash off loose soil and place the clump upside down in storage containers. After thoroughly air-drying the clumps they should be stored in a frost-free place. Winter stor age temperatures of 35 to 50 degrees are best. A place which will keep potatoes in good condi tion will satisfactorily store dahlias. After drying and pack ing the clumps in dry sand, peat moss or sawdust will aid in the prevention of shriveling. Sfeel Head, Model Steal Taxi as Joke Honolulu (IPI The president of a Los Angeles steel company and a blonde model were arrest ed Wednesday for stealing a taxicab as a joke. Anthony C. Meehleis, 44, En cino, Calif., who heads Meeh leis Steel Company, and Lee Raynor, 29, Daytona Beach, Fla., were released eight hours after their arrest. They told police they took the cab as a joke after they failed to arouse a sleeping cab driver at about 3 a.m. Police quoted Meehleis as say ing when he was arrested: "I'll buy out the entire cab stand if I get into trouble over this." Police said the two were re leased because of "insufficient evidence." Accounting Slated For Fall Course In Adult Program Farm accounting and income tax and farm welding are two courses which will be offered in adult extension classes at Eagle Point Higa school this year, ac cording to Nat Etzel, vocational agriculture advisor. First course in farm account ing is to start at 8 p.m. Thurs day, Nov. 7. One instructor will be Gene McCurley, agricultural field representative of the Med ford branch of the First National bank of Portland. He has had broad experience in farm financ ing and credit work. He is also past adult farm instructor for veterans at Central Point and an ex-farmer. Working with him will be Bill Jess, Eagle Point rancher. Jass has advanced de grees in accounting from Stan ford university and was form erly an accountant for Standard Oil, Etzel said. Several guest speakers are scheduled also to speak on re lated subjects such as property tax, insurance, industrial acci dent reports, social security and federal and state income tax. A course in farm welding will start the third week in January in the vocational agriculture shop. This will include both arc and gas welding. Instructor will be Ed Learning, shop foreman for Steve Wilson's shops at Trail. Enrollment will, be limited to 15 students. Pre-registration is required. All equipment, rods, gas, and practice metal will be furnished, Etzel said. If the course is not adequate to meet the community's needs a repeat of the first course will be given around the first of April, Etzel added. Additional information may be obtained from Nat Etzel by calling Hillcrest 6-3071. The courses were scheduled at the fall meeting of the Eagle Point vocational-agriculture ad visory board held at Eagle Point agriculture building Thursday, Oct. 17. Darrell Stanley, is board chair man. Other members present were John Ousterhout, Gordon Stanley, Bill Jess, Don Geren, and Nat Etzel, vocational agri culture instructor. Guests included Gene McCur ley, Ed Learning, and Earle Jossy, county extension agent. Molalla Youth Found Guilty in Shooting Oregon City (IP Clyde De wain Feyrer, 19, Molalla, Wed nesday was found guilty by a Circuit Court jury here on a manslaughter charge in connec tion with the fatal shooting of his brother, Leonard A. Feyrer, last July. The jury deliberated about seven hours before returning its guilty verdict. Sentencing will be Monday in the court of Judge P. K. Hammond. California Revokes Some Quarantines Salem California quarantines pertaining to pear psylla and onion yellow dwarf disease have been revoked, according to a memorandum received by the state deartment of agriculture today. In past years, onion sets and bulbs entering California from the Pacific Northwest had to be accompanied by proof of their origin in a yellow dwarf free area. Certification is no longer required. All pear psylla fumigation re strictions on the entry into the state of bulk apples and pears to processing plants have been lifted. In- the opinion of Cali fornia plant officials, the quar antine was of little or no value in preventing further spread of this insect. Barley Suggested For Turkeys Here Oregon turkey growers, heavy users of out-of-state corn, can cash in on the state's increasing supply of locally-produced bar ley, according to a new circular of information published by the Oregon State college agricultur al experiment station. Barley in combination with corn will bring cheaper gains than all corn, according to the authors of the circular, W. G. Brown, agricultural economist, and J. A. Harper, poultry re searcher. The circular, "Replacing Corn with Barley," is available from county extension offices or the OSC bulletin clerk, Corvallis. Cost charts for various feeding methods show how to get the most value from barley at the lowest cost. awdust Telephone 2-2111 MEDFORD FUE GO. Pears Show Lead During Inspection Salem Pears from the Medford area accounted for one third of all Oregon-grown fresh fruits and vegetables inspected at shipping point centers during September, according to state de partment of agriculture statis tics. The number of cars inspected last month in the state was 33- 91.2 which bettered August to tals by over 350 cars. Potatoes from the Ontario dis trict filled 988 cars, and 255 carloads of onions were also in spected in that area. The Milton-Freewater inspec tion service recorded small am ounts of apples and potatoes shipped through the center last month. In addition to 306 cr loads of pears, Hood River dis trict officials inspected apples and brine cherries. Commodities inspected at the Portland shipping point center included apples, pears, carrots, onions, onion sets, potatoes, fil berts, and brine cherries. Salem reported dried blackberries, corn, onions, onion sets, potatoes, filberts and brine cherries. Over 183 carloads of potatoes were shipped from the Redmond area. In addition to pears, Med ford inspectors examined apples, pears, plums and potatoes. Klamath Falls shipping point center reported over 259 cars of potatoss inspected, along wtih pears and onions. STRIKE STOPS BALLET Paris HP) A strike of elec tricians and technicians closed down the Paris Opera Wednes day night and forced the sea son's first ballet to be cancelled. The incident was the latest in a wave of strikes for higher wages which will . be climaxed by a general strike on Friday. Klamath County Rancher Named Grassman of Year . Portland (IP) Dave Camp bell, Klamath county rancher, was named today as Oregon "Grassman of the Year" for 1957 by the Portland Chamber of Commerce. . Campbell, who operates a ranch near Bly, was nominated by the Klamath county Cham ber of Commerce. Second place in a close con test went to Ezra Galloway, Tillamook dairyman. Campbell will receive a $300 cash award from the U. S. Na tional Bank of Portland and be comes the Oregon entry in the regional contest. The Pacific Northwest "Grassman" will re ceive a S750 cash award from R. M. Wade & Co., Portland irrigation equipment manufac turer. $200 For Second Place Galloway, sponsored . by the Tillamook Junior and Senior Chambers of Commerce, will re ceive a $200 award from the bank. Last year's state and regional winner was Hans Leuthold, Till amook dairyman. The Dave Campbell ranch near Bly has been a family op eration since Campbell's father acquired it in 1920. Dave bought the 11,805 acre cattle spread in 11952. They transformed low- producing, often worthless, land into high yielding grasslands. The Campbell ranch now pro duced 1000 tons of hay annual ly, enough for 500 cows. The ranch now carries 400 Hereford cows. Gordon Ashby Honored For Outstanding Work Corvallis Gordon P. Ashby of Medford, a senior at Oregon State college, has been honored for outstanding work in Army ROTC during the past three year's by being selected as a "distinguished military student". Distinguished military stu dents have the opportunity to apply for regular Army commis sions, rather than for the reserve commissions normally received by ROTC graduates. If accepted, they may upon graduation, enter the regular Army on the same basis , as a West Point graduate. Having -a Halloween Party? HALLOWEEN. 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