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Public Hearings
Under Vay on Two
Reduction Bills
Labor Representative
Among First Witnesses
Salem 0P The Oregon Leg
islature was at grips with the
tax reduction problem today
after two bills embodying the
governor's tax plans were in
troduced and speedily referred
to the House Taxation Com
mittee. Public hearings got under way
Monday afternoon at the special
legislative session with mem
bers of the Senate Taxation
Committee sitting in so that
testimony would not have to be
duplicated in both House and
Senate.
H o u-8 e Taxation Chairman
Clarence Barton, Coquille Dem
ocrat, said he had had numerous
requests from persons desiring
to appear before the committee
and that they would all be grant
ed time.
The governor's two tax bills
calling for a straight 10 per
cent reduction in personal in
come taxes and a $10 per census
child boost in basic school aid
were rushed to the tax com
mittee when the house voted
to suspend its rules to do the
job.
Rules Committee 'Tough'
Other legislation may have a
hard time getting considered.
Rep. Glen Stadler, Eugene Dem
ocrat and chairman of the House
Rules Committee, said his com
mittee would be "tough." The
Senate also beefed up its rules
committee to 10 members five
Republican and five Democrats.
One of the first witnesses be
fore the joint House and Senate
tax meeting was Tom Scanlon,
representing the Oregon State
Labor Council and longshore
men and trainmen.
Scanlon said his organization
agreed with Gov. Robert Holmes
that some $50 million of the
state's expected $69 million sur
plus should be retained by the
state so that taxes would not
have to be raised in 1959.
But Scanlon was opposed to
the governor's request for more
school aid, favoring instead the
state's picking up the $10 per
census child now provided by
county school funds. He said
this would provide direct prop
erty tax lief at the local level
in the quickest fashion.
Sen. Anthony Yturri, Ontario
Republican, and Rudie Wilhelm
Jr., Portland Republican, ques
tioned Scanlon as to why he
was willing to accept a $10
million surplus when the reg
ular legislative session ended
las May, but now thought that
a $50 million surplus was neces
sary. Surplus Questioned
Scanlon said that since the
Legislature adjourned the state's
economic position had worsened
and the State Finance Depart
ment had been able to furnish
a better idea of how much
money might be needed during
the 1959-61 biennium.
The labor representative also
was not optimistic that all of
the state's projected $69 million
surplus would materialize. He
said that if the tax commission
made a study now, it might find
revenues reduced.
Tax Commission Chairman S.
W. Horn told the committee the
state probably would have the
S69 million as of June 30, 1958.
Howard Dietrich, represent
ing the Oregon Society of certi
fied public accountants, asked
the committee to consider ac
celerated or "realistic" deprecia
tion and loss carry-over laws for
Oregon as a stimulus to industry.
(Sea story on page 10)
Planners Recommend Zone
Changes in Berrydale Area
About one-third of the Berry-
dale addition was recommended
for zone changes by the Med
ford planning commission at a
meeting last night.
A public hearing on the pro
posed changes will be held at
the Nov. 12 commission meet
ing. Robert A. Duff, city man
ager, said the changes recom
mended were confined to the
southern section of the addition
which borders Highway 99.
Acting on a petition by sev
eral residents in the area, the
commission found that a "land
use" study was necessary before
reviewing the petition which
asked for a zone change of class
IA. single family, to class HA,
multiple family.
Dull said the study showed
Ta
PLANNERS
JECTIOtJ
OPOSED
An overflow crowd of Grange
members and others interested
attended a meeting of the county
planning commission in the
courthouse last night, to hear
discussions of the proposed sub
division ordinance.
No definite action was taken
at the meeting.
But after the discussions, Fred
Barber, of the planning consult
ant firm of Hahn, Wise and
Barber, pointed out that no one
attending had stated the pro
posed ordinance should be
"thrown out" completely.
Discussion on various points
in the ordinance took up more
Hotel Clerk Admits
Report of Armed
Robbery Was False
Medford police said this mor
ning that Richard Loyd Nelson,
28, Grand hotel night clerk, was
arrested on charges of disorder
ly conduct after he told them
his report of an armed holdup
Oct. 26 was false.
In a signed statement, Nelson
admitted taking the money, plac
ing a gag in his mouth, fashion
ing a wire clothes hanger around
his wrists and then calling pol
ice to report an armed holdup,
according to Lt. Lyle Perkins.
Police said Nelson told them he
took the money and then made
up the holdup story because he
is in debt.
Nelson's report of an armed
holdup resulted in alerts to law
enforcement agencies in Oregon
and northern California, police
said. Detective Sgt. Jack Sand
ers said several roadblocks were
established along the Cayfornia
Oregon state line in an attempt
to apprehend a car with Calif
ornia license plates matching the
description Nelson gave police.
Police said Nelson was re
leased on his own recognizance
to appear in municipal court
Wednesday morning.
Thelma Mclntyre
Is Elections Clerk
Thelma Mclntyre, formerly
chief photographer in the Jack
son county clerk's office, will
now be supervisor of the election
section in that office, accord
ing to Mrs. Bereth P. Hopkins,
county clerk.
She replaces Mrs. Eugene Pe
terson whose husband has been
transferred to Portland.
Grace Bohl, formerly assistant
photographer is now chief pho
tographer, Mrs. Hopkins said.
Other changes include Orpha
Le Schensky, shifting to the
county treasurer's office to be
come chief deputy. She was for
merly assistant chief deputy for
legal department.
Newly hired for the county
clerks office are Mrs. Wilma
Sites. Ho Whitman and Made
line Schnack. Claudine Gibsbn
and Rae Jenkins have been hir
ed to work in the district clerk
office. They replace Lucille
Smith, who left to be married
and Doreen Straus, who has
moved to San Francisco, Calif
Irene Brenner is newly ap
pointed as supervisor of the le
gal department.
the need for a more complete
rezoning. A section of land bor
dering Highway 99 on the south
as been proposed as a light-in
dustrial area by the commission.
The commission also proposed
the section bordering the north
side of Highway 99 as a limited
light-industrial section with a
belt of multiple family zone rec
ommended north of the latter
area.
Sections bordering Highway
99 were recommended for park
ing only. Duff said. The sections
would be class VII and be about
30 feet, Duff added.
The commission also ap
proved the vacation of an alley
in the Consolidated addition.
Duff said lack of use was the
reason for requested vacation.
P
HEAR
S TO
BILL
than an hour, and members of
the audience spilled out into the
corridor outside the planning
office.
While thanking the Grangers
who had been invited to attend
the meeting, Commission Chair
man John Pletsch stated em
phatically, "We won't try to
'put something over' as some
rumors have indicated. Accord
ing to law we must publish a
notice in local papers once a
week for two consecutive weeks
that a public hearing on the
ordinance will be held. During
the hearing the county court
will hear any final objections
opposing it and an election
would be held later."
Major objections to the pro
posal seemed to be: (1) it too
closely resembles the city ordi
nance and therefore cannot be
applied to rural areas, (2J" the
restrictions do not allow a per
son with little money a chance
to build a home, (3) the mass
of resulting red tape overly de
lays a property sale, (4) the
sanitation regulations in the pro
posal places too much authority
in the hands of the public health
officer, and (5) some of the pro
visions place too great a burden
on the few men in the Jackson
county court.
'Restraint of Trade'
One objector to the ordinance,
Henry Conger, of Ross lane,
Medford, remarked that the
ordinance would act in "re
straint of trade."
"I'm going to subdivide the
land and cut it up any darned
way I please. The title I have
from the United States govern
ment allows me to. I don't have
to have someone come in and
re-survey my land before I sell
it if I don't want to."
Chairman Pletsch said the
question of survey was not the
point being discussed.
Maurice Davies, Eagle Point,
president of the Jackson County
Farm Bureau, said the ordinance
should "be strong enough to pre
vent formation of semi-slum
areas. Two or three main objec
tions he said are that the sewer
requirements are impractical,
paved streets too expensive for
smaller acreage tracts and the
bond required of a subdivider
a "little high."
One member of the audience
suggested that the county sub
division ordinance include a map
of soil types in the county and
types of septic tanks be sug
gested for soil varieties.
The section which states
"Only areas which can be eco
nomically served can be devel
oped" does not provide ade
quately for the future of some
areas, another person pointed
out. The Bear Creek area is
well built up today but in 1910
it could not be served economi
cally, he said. Also, he said, a
lot of needless expense is forced
on the subdivider, according to
the proposal. For example,
"there is no sense in putting con
crete monuments -every 500 feet,"
he pointed out.
Foster Luce, Live Oak Grange,
Rogue River, commented, "How
can you lift the city planning
ordinance and apply it to the
county. Rural areas have differ
ent problems."
The planning consultant an
swered that the ordinance can
be revised so a "set of double
standards for city and county
can be included." This he added
could be worked out with the
Granges and the city.
Charlie Hoover, 2905 Gregory
rd. and other farmers remarked,
"A man has to have a starting
place." When a man is starting
to accumulate property, often
he has no choice but to live in
a shack. There should be no
objections if the place is kept
neat and clean, he intimated.
Another commented that too
much red ttape tends to drive
away a buyer. Many retired
Californians are moving to the
valley to live, he explained, red
tape should not be allowed to
drive them away since they are
an asset to the county.
A man, who lives just outside
the city, stated that such an ordi
nance should have been in effect
10 years ago. Haphazard loca
tion of houses in his area would
make it almost impossible to put
through streets in at many loca
tions, he illustrated.
Year
u
MEDFORD
United Press Full Leased Wire
16 Pages
Eight Taxation
Bills Introduced
At Legislature
Real Tax Relief
Seen by Wilhelm
Salem (IP) The House
Rules Committee today killed
all but three lax reduction
bills sent to it by the House
for approval.
Three bills. House bills 5.
8, and 10 introduced by a
group of Republicans and
Democrats today will be sent
back to the House for further
consideration and thence to
the lax committee.
Salem (IP! Eight taxation
bills were introduced by a group
of Republicans and Democrats
today, accompanied by a state
ment by Sen. Rudie Wilhelm
Jr., Portland Republican, that
the proposed legislation "will
give Oregon taxpayers real tax
relief prudently in light of our
surplus."
The key bill reduces tax rates
so that the first taxable income
would be at the rate of three
per cent rather than four per
cent with a maximum of 10 per
cent rather than 11.6 per cent.
Sponsors of this bill were Reps.
Allen Tom, Rufus; Eddie Ahrens,
Turner; Carl Francis, Dayton;
and Wilhelm, all Republicans.
Wilhelm said this bill would
give over 15 per cent reduction
to taxpayers on their 1957 and
1958 and future income and
would reduce the surplus by
about $28 million for each bi
ennium. Another bill would reduce cor
poration excise taxes from six
to five per cent and would, in
Wilhelm's words, "put Oregon
in a comparatively good relation
ship to California, which has a
four per cent rate, but a sales
tax in addition."
Double exemption to those 65
years of age or older on their
state income tax is sponsored by
Sens. Ben Musa, The Dalles,
Democrat; Wilhelm; Francis
Ziegler, Corvallis Republican;
and Reps. Katherine Musa, The
Dalles Democrat; and Joe Rog
ers, Independence Republican.
Four other bills introduced by
both Democrats and Republicans
would allow federal deprecia
tion schedules on state returns
and carry forward of business
losses for both personal income
tax and corporations. These
bills were passed in the Senate
in the regular session but were
defeated in the House.
Wilhelm said the entire eight
bills would considerably im
prove Oregon's personal and
corporation tax structures, and
provide real tax relief, and, at
the same time, leave a sizeable
cushion of surplus funds for the
1959 Legislature to use in the
event of a slight recession in the
state.
Among those signing some of
the bills introduced by Sen. Wil
helm, but not all, were: Demo
cratic Sens. Harry Boivin, Kla
math Falls, and Ben Musa, The
Dalles, and Reps. Katherine Mu
sa, The Dalles, and John Ker
bow, Klamath Falls.
Republicans signing some, but
not all, were: Sens. Philip Low
ry, Medford; Lee Ohmart, Sa
lem; Francis Ziegler, Corvallis,
Carl Francis, Dayton, and Reps.
Fayette Bristol, Grants Pass;
Wayne Giesy, Monroe; Joe Rog
ers, Independence; Shirley
Field, Portland; Allen Tom, Ru
fus; and Eddie Ahrens, Turner.
Job Due Zhukov,
Khrushchev Claims
Moscow IIP) Soviet Com
munist party chieftain Nikita
Khrushchev said today that
Marshal Georgi Zhukov, depos
ed as defense minister, will soon
get a new job corresponding to
his "experience and qualifica
tions." Speaking to newsmen at a
recent reception in the Turkish
Embassy, he said: "I saw Zhu
kov today. I spoke to him.
"He was in good health. We
have not decided on a new job
for him yet. But he will have
one in keeping with his exper
ience and qualifications.
"But you will not hear about
it tonight."
j
I
Mr
MEDFORD, OREGON, TUESDAY, OCTOBER 29, 1957
u
Most
Dull
ec.
"You Don't Understand Us Arabs"
Copco Authorized
To Borrow Money
For Construction
The California Oregon Power
company has been authorized by
the Oregon and California Pub
lic Utilities commissions to bor
row up to S12 million to finance
new construction, according to
Albert S. Cummins, president of
the firm.
Authorization of the credit
agreement is expected' momen
tarily from the hydroelectric
commission of Oregon, Cummins
said. "
The $12 million is the prelimi-
Wafer Operators to
Hold Annual Meeting
The annual Water Works' Op
erators' conference for Jackson
and Josephine county will be
held at the Medford city hall
council chamber Wednesday,
starting at 1 p.m.,' according to
Water Superintendent Robert L.
Lee.
The conference is sponsored
by the Oregon siate board of
health.
The program is set up mainly
as a question and answer period
to discuss problems of the water
departments, he said. If time
allows, the group will talk about
policies regarding public water
supplies, water quality and treat
ment, long range planning and
watch a film, "Life Lines for
Civilazation," Lee added.
Lee said he expects about 25
water department representa
tives from the Jackson and Jose
phine county area to attend.
Medical Lake, Wash.'
Inmates at Eastern State hos
pital's maximum security ward
seized a reported 28 hostages
today and all available law
enforcement officers were or
dered to the scene.
WEATHER
FORECAST: Variable high
clouds tonight and Wednes
day with patchy valley fog
early Wednesday. Low to
night 37, high tomorrow 60.
Temp.
Highest Yesterday 59
Lowest this Morning 31
Our Skies Tonight
Sunrise
fi:41 a.m.
Sunset
Moonset
5:09 p.m.
11:09 p.m.
day 2:48 a.m.
PROMINENT STARS
Altair. high in south
west 7:21 p.m.
and low in west at moonset, is
flanked . by two stars: the
brighter is called Tarazed, the
dimmer, Alshain.
bulletin
Com
4TT
United
y
nary approved construction
budget of the company for 1958.
The funds thus made available
with those expected to ge gen
erated through operations, Cum
mins said, are estimated to be
sufficient to meet company's
construction requirements
through 1959 and into early
1960.
The 1 borrowed sum will be
spent $5,000,000 for local proj
ects and $7,000,000 for special
projects. Included in the special
projects will be $5,000,000 for
the completion of the Big Bend
plant on the Klamath river
which will have a capacity of
80,000 kilowatts and will have
a total cost of approximately
$12,403,500.
Another $1,850,000 will be
used to complete the new 70
mile, 230,000 volt transmission
line to extend from Klamath
Falls, at the Big Bend plant, to
Medford. Scheduled completion
dates on. both projects are dur
ing 1958.
Local projects, Cummins re
ported, included any general
construction of buildings, dis
tribution stations, and servicing
of new buildings and dwellings.
Norblad Sees Base
As Waste of Money
Salem PI Rep. Walter Nor
blad (R.-Ore.) told the Salem Ki
wanis club today that a pro
posed $40 million air base in his
district "would be a complete
waste of money."
Norblad said "any congress
man would be extremely happy
to have a $40 million project in
his district." But, he said, the
Air Force "should continue to
use the present Portland base
for the next few years."
An air base in the St. Paul
Woodburn area was first
planned by the Air Force as a
substitute for the Portland base
but plans later were dropped.
Norblad said that the Defense
department is not building any
new interceptor bases because
the ground-to-air missile can do
the job with almost complete ef
fectiveness and accuracy as com
pared with interceptor planes
and without any loss of life.
DOW-JONES AVERAGES
New York cm Dow-Jones
final stock averages: 30 indus
trials 435.76,up 3.62; 20 rail
roads 111.14, off 0.09; 15 utili
ties 64.55, up 0.14, and 65 stocks
147.90, up 0.78. Sales today
were . about 1,860,000 shares
compared with 1,800,000 shares
Monday.
le Alert,
es Declared
Price 10 Cents
Tribune
Press Full Leased Wire
No. 162
Military Action
By Soviets Hinted
At Conference
War Not in Prospect,
Administration Feels
Washington OP) Secretary
of State John Foster Dulles said
today mat tne current power
struggle in the Kremlin requires
the United States to be alert for
a possible Russian adventure.
Dulles did not say whether
this might take the form of a
military or diplomatic action.
Dulles told a news conference
he would not suggest that war is
just around the corner. He said
the administration does not be
neve now that a war is in pros
pect.
But Dulles said it must be re
membered that whenever a great
nation seems to be having inter
nal problems that they some
times lead to external actions to
divert aitention.
We have to be alert, he warn
ed in appraising the ouster of
Soviet Defense Minister Georgi
Zhukov.
Dulles did not definitely say
a Soviet military action, but pre
sumably that was in his mind.
Dulles said the prolonged ses
sions of the Communist party's
Central Committee indicate that
there are very important issues
being solved by Kremlin lead
ers. He suggested that the prob
lems are more domestic than in
ternational. But when' asked
pointblank whether he consid
ers Zhukov's situation ."good
news or bad news," Dulles said
he did not know. He said he
could only tell after the final
outcome is known.
Dulles gave the impression
that the State Department itself
does not have any inside infor
mation about Saturday's dram
atic announcement that Zhukov
had been "relieved" of his post
as defense minister. But the feel
ing is growing in official quar
ters here that the Kremlin lead
ers are still battling over high
command posts.
. On other international topics,
Dulles:
Said President Eisenhower
would give sympathetic consid
eration to any invitation asking
him to attend the mid-December
meeting of the North Atlantic
Treaty Council in Paris. Dulles
said nothing more on this point,
but an announcement is expect
ed shortly that the President
will fly to Paris in mid-December.
Said any "new look' at the
nation's defense program is not
expected to result in any reduc
tion in defense spendings. Ways
must be achieved, however, for
greater efficiency and dove-tailing
in defense fields with U. S.
allies.
Said the U.S. is not consid
ering any vast new Middle East
ern aid program.
UMC Campaign Reaches 74
Per Cent of $123,130 Goal
Robert A. Johnson, general
chairman of the United Medford
Crusade, reported that 74.6 per
cent of the $123,130 goal for the
1957-58 campaign has been
reached.
A total of $91,436.44 has been
pledged or contributed to the
UMC, he said, representing a
"higher percentage than at a
comparable time last year."
More than 100 Crusade work
ers attended the final general
report luncheon at the Elks
lodge here yesterday. Subse
quent report meetings will be
held at the Jackson hotel with
division and assistant . division
chairmen attending.
Service Division
The service division reported
collecting $5,583 during the past
week, and the utilities section
was singled out for recommen
dation for collecting about $2,-
Golda Meir, Two
Others Injured
By Hand Grenade
Thrower Rescued
From Bystanders
Jerusalem (IP) A disgruntled
youth exploded a hand grenade
in the Israeli Parliament today.
wounding Prime Minister David
Ben-Gurion and three other
Cabinet ministers on the first
anniversary of Israel's invasion
of Egypt.
The grenade - thrower was
carrying an Israeli identity card
with the name of Moseh Haco-
hen Duek. He was beaten by
bystanders before police rescued
him and carried him off to be
questioned.
Police were not immediately
able to determine his nationality
or political affiliations if any.
Golda Meir Hurt
Ben-Gurion, Foreign Minister
Golda Meir and Transport Min
ister Moshe Carmel were slight
ly hurt in the blast. But in
juries to Minister of Religious
Affairs Moshe Shapiro were de
scribed as more serious.
The bomb hurler was de
scribed by authorities as a man
who held "personal complaints"
against the government officials.
Ben-Gurion's right hand was
slightly injured in the explosion.
Mrs. Meir suffered a foot in
jury.
The explosive, believed to be
a powerful grenade, was tossed
at the government table from
the gallery during a foreign af
fairs debate.
Rushed To Hospital
The Knesset was debating the
foreign policy statements of
Ben-Gurion and Mrs. Meir
when, at almost exactly 6 p.m.
(8 a.m. p.s.t.), Dueg arose in the
public gallery and hurled his
explosive to the parliament
floor. It landed at the head of
the cabinet table.
Shapiro, who was sitting near
est the blast, was most severly
hurt and was immediately rush
ed to a hospital.
Tlie shaggy-haired Ben-Gurion
ducked as the missile came to
ward the cabinet table and suf
fered injuries only to his right
hand.
The Knesset sat in stunned si
lence for a second. Then, while
attendants ran toward the gov
ernment table, Speaker Joseph
Sprinzak adjourned the session
for two hours.
Cloud of Smoke
The grenade exploded in a
cloud of smoke as a member of
parliament, Isaac Rephael, was
speaking.
Panic gripped the house after
moments of stunned silence.
Shapiro, whose chair was
nearest the explosion, slumped
to the floor, bleeding profusely.
He was reporved seriously
wounded.
Ben-Gurion stood up calmly,
blood flowing from his right
arm.
Mrs. Meir and Carmel were
hit by pieces of shrapnel. They
were only slightly hurt.
Mollef Fails; Cofy
Turns To Gaillard
Paris 0?) The National As
sembly early today rejected So
cialist Guy Mollet's attempt to
form a new government. Presi
dent Rene Coty promptly tapped
young financial wizard Felix
Gaillard, Radical Party leader,
to make the next try.
The assembly turned down
Mollet by a 290-227 vote, thus
prolonging the four-week politi
cal crisis conceded to be the
worst since World War II. The
Conservatives lined up with the
Communists and extreme Right
Wing Poujadists to defeat him.
At 4:40 a.m. Coty summoned
Gaillard to the palace. He is 37
and finance minister in the gov
ernment of caretaker Premier
Maurice Bourges-Maunoury.
000 more than its stated goal,
Johnson reported.
The public employees division
reported that 106.9 per cent of
its goal has been reached. Elliott
Becken is chairman of the di
vision. Dick Travis' service di
vision reported 92.5 per cent of
its stated goal reached.
Home Crusade officials start
ed planning the door-to-door can
vass at a training, meeting this
morning. The Home Crusade is
designed to contact residents
who have not been contacted
through business or industrial
firms.
Johnson expressed apprecia
tion to campaign workers and
contributors for helping the
UMC reach about 75 per cent of
its goal at this time. He said he
was confident "that we will sur
pass our goal and thus set a rec
ord for the state of Oregon."