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MEDFORD
26 PAGES
IMJoDinnies lecmmeimds
W 9
No Boost in
Income Tax Rates
Would Be Made
State Surplus
Would Be Used
Salem (IIPD A $299 mil
lion budget for the 1959-61
biennium was recommended
to the state Legislature by
Gov. Robert D. Holmes to
day. This is about $24 million
more than the budget for the
current biennium, but would
call for no boost in income
tax rates.
The new budget would use
no the $30.5 million state sur
plus and pick up additional
cash from a 15-cent-a-fifth
boost in liquor prices and
changes in tax administration
policies to make up the dif
ference from the $276 million
budget expenditure total for
1957-59. . v , .
Some $13 million of the
current budget was spent for
higher education and institu
tional building programs.
Holmes said increases are
needed primarily to take care
of growing state agency work
loads within "existing stand
ards of service," a yardstick
used by the governor to de
termine budget needs.
Salary Hikes Asked
Included are provisions for
modest salary adjustments to
make the state more nearly
competitive for higher educa
tion and other state em
ployees.
Some $62 million was cut
from agency requests in the
Holmes budget, but increases
were allowed for higher edu
cation, institutions, basic
school support and welfare.
Biggest percentage boost
would go to the Board of
Higher Education which
would get an 18 per cent in
crease amounting to some $8.4
million.
Recommendations call for
$10.7 million for basic school
increases, $7.3 million for in
stitutions and $2.1 millions
for welfare.
Other departments would
share in $7 million in in
creases.
Building Program
The state building program
is missing from the budget
except for $2,500,000 for cnti
cal construction projects.
This amount would permit
undertaking of projects di
rectly related to health and
safety conditions at institu
tions and higher education
facilities, and would assure
retention of available federal
matching funds for the pro
posed medical research center
in Portland and some plan
ning for Oregon Technical In
stitute's new facilities at
Klamath Falls.
The budget would utilize
all available resources and
would anticipate no surplus
as of June 30, 1961.
Sources of Money
Money would come from
these sources:
$30.5 million from surplus.
$258 million from current
income.
$6 million from eliminating
of installment payments on
personal income taxes.
$2 million from taxing util
ity companies on the same
basis as other corporations
under the corporation excise
tax.
$3.5 million from transfer
to the general fund of inherit
ance and gift tax receipts now
held as temporary suspense
deposits.
S3 million from the 15-cent-a-fifth
average increase in
price of alcoholic items.
MEDFORD,
Aftillion iudlgeft
"Lyndon, Could You Say
To Our Boys Too?"
Hatfield To Study
Governor's
Salem-(UPE-Gov.-elect Mark
Hatfield said today it was
"gratifying" to note Gov. Rob
ert D. Holmes' attempt to re
flect the people's desire for
economy in government with
his 5299 million budget.
But he charged the budget
was "in sharp contrast to cam
paign promises of increases
in a variety of purposes:
Promises for a $40 million in
crease in basic school; prom-
Red Publication
Raps Atlantic Pact
Berlin-flJPD-The Communist
organ Junge Welt ridiculed
the Atlantic Pact as "paper
tiger" today and challenged
the right of the Western allies
to defend West Berlin.
The Red publication scoffed
at the pact council's unani
mous decision in Paris this
week to respect Russian de
mands for western abandon
m e n t of the Communist
encircled city.
Junge Welt echoed the So
viet claim , that the Potsdam
agreement and other pacts
committing the Kremlin to co
operation with the western
powers in the control of Berlin-are
no longer valid.
"It is clear that the western
powers have lost every claim
to remain in Berlin," it said.
Telephone Rate
Hearing Concludes
Salem - (UPD - A hearing
before the Public . Utility
Commisison on the applica
tion of Pacific Telephone and
Telegraph company for a 9
per cent statewide rate in
crease concluded Thursday.
Vale- (UPD -James McLaugh
lin, 37, Vale service station
attendant, was killed -today
when the deer rifle he was
cleaning accidentally dis
charged. WEATHER
FORECAST: Cloudy and warm
er with occasional light rain
tonight and Saturday. Low to
night 48. High Saturday 62.
Temp.
Highest Yesterday 39
Lowest this Morning 35
Our Skies Tonight
Sunset today 4:41 p.m.
Sunrise tomorrow 7:36 a.m.
Moonset tomorrow 2:22 a.m.
Full Moon Dec. 25
Since Oct. 9 a combination of
the movements of Mars and the
Earth on their orbits has caused
Mars to appear to move west
ward among the stars in its
background. Tomorrow Mars
will resume moving eastward
which is its real motion.
OREGON, FRIDAY, DECEMBER 19, 1958
a Few Calming Words
Budget
ises of highways without gaso
line tax increases; and prom
ises of salaries and buildings."
Detailed Study Planned
Hatfield said he would
study the budget in detail and
have some recommendations
of his own to make to the Leg
islature. "We shall examine depart
mental budgets to assure no
essential services are crippled
by the governor's action and,
further, we shall make full
investigation to the end that
economical practices are put
into effect throughout govern
ment," Hatfield said.
He said the people of Ore
gon have indicated "they want
government at a price they
can afford."
"The price tag the govern
or has put on government ap
pears reasonable in its total,"
Hatfield commented, "but it
has been arbitrary and un
reasonable in some detail."
Building Program Ignored
He hinted that the "bal
anced" budget was a bit un
reasonable because it ignored
the building program. Gov.
Holmes asked only $2,500,000
for higher education and state
building in his budget.
Hatfield analyzed Oregon's
tax problems this way: "Either
we operate on a spartan budg
et or we go to a taxation in
crease." He added that it was un
fortunate that the governor's
budget took no notice of the
report by Dr. John Sly of
Ohio State University who
recently completed an evalua
tion of Oregon tax and fiscal
problems.
Gold Find at
Dunsmuir Denied
Dunsmuir, Calif.-fUPB-Siski-you
County Sheriff A. B. Cot
tar today disgustedly wrote
off a report of recovery of a
gold-filled Wells Fargo box as
"a phoney."
Rumors of the find have
swept through this mountain
community for the past week.
But Sheriff Cottar said they
weer just that rumors. He
said they were discounted
four days ago.
Don Haney, office engineer
of McCammon Wunderlich
construction company of Palo
Alto working on a freeway
project on U.S. 99 here, said
he had heard that one of the
workmen had started the ru
mor as a joke.
Tribune
Macomber Motion
Denied By Judge;
Ruling Given
Macomber Returns
To State Prison
Circuit Court Judge Charles
E. Woodrich, Roseburg, de
nied a motion filed by Gerald
Theodore Macomber, former
ly of Tillamook, now serving
a life sentence in the Oregon
state penitentiary, in circuit
court here this morning.
He requested that the dis
trict attorney prepare an or
der to that effect and stated
that Macomber was to be re
turned to the state peniten
tiary. The motion, filed by Ma
comber in 1956, was to set
aside judgment, sentence and
information and to review
only errors of facts affecting
the validity of the judgment
of conviction.
TVI a c iomFer, who was
brought to Medford Thursday
from Salem by sheriff's depu
ties, was arrested by Medford
city and Oregon state police
in July, 1950, on three
charges of assault with intent
to kill.
This motion by Macomber
was the latest in a series of
legal proceedings he has in
stituted since his sentencing.
According to court records he
pleaded guilty in circuit court
here to district attorney's in
formation after waiving the
right of grand jury indict
ment and of being represent
ed by an attorney.
(Continued on Page 15)
Needy Family
Names Requested
The Inter -agency office
council and the Salvation
Army have received more re
quests from organizations and
individuals for names of fam
ilies needing food baskets this
Christmas than there are such
listed, Red Cross officials have
reported.
Names of families who
might be recipients of the
food baskets, may be called
into the Red Cross office, tele
phone SPring 2-4405 or SPring
2-5919, or to the Salvation
Army at SPring 2-4230.
The food baskets will be
delivered by clubs, YMCA
and church groups. Girl Scout
troops have assisted in the
packing of the baskets and
the Welfare department work
ers have cleared names of
families who received them.
Autopsy Slated
In Death of Boy
Salem-(UPD-An autopsy and
inquest were being held to
day into the death of a 16-year-old
MacLaren school for
boys inmate who died follow
ing a fight with another boy.
William Edward James,
Grants Pass, died about 3:30
a.m. Thursday in an ambu
lance on the outskirts of Port
land. A 15-year-old Lincoln coun
ty boy was being held in the
school's security building in
connection with the fight.
IBuDDetiin
Cave Canaveral. Fla.
(UPD-An unidentified rocket
look off from the launching
area here shortly after
12:30 p.m. (P.S.T.) today.
The rocket left a trail of
lt vapor high in the sky.
Price 10 Cents
No. 232
Eugene Mother
Held in Death of
Three Children
Woman Feared
Police, Communists
Eugene, Ore. (UPD Police
prepared to file a murder
charge today against a mother
who apparently drowned her
three children because she
feared "police and Commu
nists." "I'm not afraid for my chil
dren now," said Mrs. Donna
Rutledge, 27, from her bed
at Sacred Heart hospital,
where she was taken after
the tragedy.
The slayings were discov
ered Thursday by a neighbor,
Roger Stone, who saw a fig
ure sitting near a ditch.
Bleeding From Cuts
He said he looked through
his binoculars and saw Mrs.
Rutledge with blood stream
ing down her face. He called
police.
Officers found Mrs. Rut
ledge, her face covered with
mud and bleeding from face
cuts, sitting beside the bodies
of her children, Mark Elliott,
5, Darlene, 4, and Tammia, 2.
"Police and Communists are
after my children," she said.
Officers said Mrs. Rutledge
had apparently tried to take
her own life by striking her
self about the head with a
rock. She begged them to
shoot her.
Mrs. Rutledge was taken to
the hospital and placed under
sedatives.
Sanity Hearing Planned
Her father, Vernon Beadle,
earlier had made arrange
ments for a preliminary sanity
hearing. He said his daughter
had recently complained of
"Communists and atom
bombs."
Mrs. Rutledge had been liv
ing with her parents while
her husband, Donald, was in
California.
Police said he had recently
gotten a job at an aircraft
factory near Downey, Calif.,
and had rented a home before
sending for his family. Offi
cers were not immediately
able to get in touch with him.
Bulganin Admits
Red Party Charges
Moscow (UPD Nikolai Bul
ganin appeared today to have
taken much of the heat out of
the "anti-party" charges
against him by making a full
confession and contributing to
the case against his fellow
miscreants.
No such pleas were reported
to have been entered by other
former leaders accusd of try
ing to subvert Premier Nikita
S. Khrushchev's plans 'to re
organize heavy industry, in
crease farm production and
take steps to improve the wel
fare of the Soviet people.
Bulganin, who has been
under heavy fire from Khru
shchev and other Communist
party leaders as a member
and possible leader of the
anti-party group, confessed all
in a speech Thursday to the
party's Central Committee.
J. H. Creager Elected President of
Jackson County Centennial Group
J. H. (Jack) Creager, man
ager of Pacific Teiepnone
company here, this morning
was elected president of the
Jackson County Centennial
association.
He was named to succeed
M. M. Huggins, who resigned.
The Centennial association is
a non - profit organization
formed to coordinate and plan
events in Jackson county dur
ing Oregon's "birthday party"
next year.
A wide variety of plans for
the Centennial were discussed
and reported at today's meet
ing. They included:
-A week-long program the
week of Feb. 14, the date of
ARRESTED Jerry Eugene Golden, 28, of Ashland, is sched
uled to be arraigned in district court this afternoon on
charge of armed robbery and assault with intent to kill. He
was apprehended Thursday evening following a shooting at
the 90 and 9 Tavern on South
Pollution
Talked By
Medford Mayor John W
Snider told the city council
last night the problem of po
tential air pollution in this
area must be faced even
though it can lead to con
troversy. "I think we've got to face
uyMie-saicL "I agree it could
be very controversial
Councilman Fred Robinson,
Ward I, said the council
would be "moving into an
area of considerable contro
versy" and suggested caution
But Mayor Snider said, "I
don't think there is any way
you can hide it. We want to
encourage industry but at the
same time we have an obliga
tion to protect the people of
this area."
Problem a Continuing One
"This is continuing to be a
problem and will get worse
undoubtedly," City Manager
Robert A. Duff commented.
Duff commented. Duff rec
ommended that the county
participate in anti-pollution
measures, too.
"Most of the pollution gen
erators are out of the city
and out of our jurisdiction,"
he said.
The Oregon State Air Pol
lution authority has recom
mended a joint city-state study
to gather more complete data
about conditions in Medford.
Duff said he thought the
county should take a part not
so much in the sampling as
"at such time as regulations
are required."
Councilman Robert Van
Wafer Resources Board
To Seek More Money
Portland -(UPD- The Oregon
Water Resources Board has
decided it would ask the 1959
Legislature to grant it a bien
nial budget of $422,000 in
stead of $262,000 as recom
mended to Gov. Robert D.
Holmes.
Robert W. Root, Medford,
a Board member, said the
amount proposed by the State
Department of Finance in pre
paring a budget for submis
sion to the Legislature would
be enough for only two river
basin studies in the next two
years.
Oregon's admission to state
hood, throughout the county,
including many special events.
-Plans by the Crater Lions
sports fair and the annual
Pear Blossom festival to use
Centennial themes this year.
Letter Plan Told .
-A plan by Mayor John W.
Snider of Medford to have
governmental and civic, lead
ers write to their counter
parts in Medford, Mass., with
greetings and an invitation to
visit Medford, Ore., next year.
A report that progress is
good in working out the de
tails of a "welcome" and visit
ors information booth on
Highway 99 at the Siskiyou
summit, near the California
Riverside ave.
Problem
Council
Sickle, Ward III, suggested
that Duff get in touch with
County Judge-elect Earl Mill
er after he takes office in
January.
The council formally mov
ed to recognize the existence
of the air problem and re
quested a report from Duff at
the next meeting outlining
what should be done. Robin
son abstained from voting,
Duff said he understood the
proposed joint study would
require one day's work per
week from an available city
employee. He said he had
been informed by a state offi
cial that three or four sam
pling stations would be need
ed, the filters to be changed
every 24 hours. Fallout would
be collected Monday, he said.
UMC Total Now
Kits $128,474
The United Medford Cru
sade reached a total of $128,
474 this morning, but is still
$2,586 short of its $131,030
goal, according to Dick Tra
vis, general campaign cnair-
man.
The new total is $1,096
higher than the figure re
ported yesterday. The general
campaign chairman, Dick
House, training chairman, and
John Dellenback, honorary
UMC director, made a tele
vision appeal last night that
more Christmas cards be
mailed to UMC headquarters
with dollar contributions.
After the money is removed
the Christmas cards will be
flown by United Airlines Dec.
24 to the UMC child care
agencies in Portland, Travis
said. The dollars accompany
ing the cards will be used to
reduce the deficit and achieve
the 100 per cent of the goal..
The cards with dollars en
closed should be mailed to
UMC, Box 5000, Medford,
Ore. Travis suggested that
each firm or group of em
ployees consider giving just a
little more to the Crusade. The
money is needed now more
than ever, he added.
border.
-A report that progress is
being made in setting up
"chuckwagon breakfasts" dur
ing the summer on ranches
throughout the. valley; and
progress on locating covered
wagons for the 4-H wagon
train to Corvallis in June, via
a scenic, rural route.
-Plans to include Jackson
county spots of interest on a
highway department historical
strip map.
-A report from the Rev.
Thomas McCamant that the
Medford Ministerial group
will be active in the Centen
nial, and discussion of plans
to revive the "circuit rider"
custom,
Ray Edward Reid
Gunned Down in
Dispute at Bar
Highway Travelers
Capture Assailant
Jerry Eugene Golden, 28, Is
in Jackson county jail today
on charges of armed robbery
and the attempted slaying of
Ray Edward Reid, 31-year-old
truck driver of 1850 Bar
nett rd.
Golden, of 684 West Valley
rd., Ashland, was scheduled
for arraignment in district
court this afternoon.
Reid underwent surgery at
Rogue Valley Memorial hos
pital this afternoon for remov
al of a .38 calibre slug report
edly lodged near his spine.
An iron lung was rushed from
Ashland general hospital.
Reported late last night to
be paralyzed below the waist,
he was described as being
in satisfactory condition.
Students Capture Gunman
Three students from San
Jose State college in Cali
fornia, driving to points in
Washington for the holidays,
are credited with Golden's
capture. They turned him
over to state and city police
men.
The shooting occurred short
ly before 7 o'clock last night
at the 90 and 9 Tavern on
South Riverside ave. Four
witnesses told Medford police
that Golden fired at Reid
across a corner of the bar
after what appeared to be
a minor dispute over jukebox
selections.
But Golden himself report-
tedly told District Attorney
Thomas J. Reeder today that
the subsequent robbery of the
bartender was his real reason
for visiting the tavern. He
said he had intended to shoot
into the air to scare people
and did not mean to hit Reid
He said he had come to
Medford from Ashland yes
terday morning to stage a
holdup. He had originally
thought of robbing a grocery
store, he told Reeder. He re
portedly made unsuccessful
attempts to enlist accomplices.
Received About $35
Samuel James Morehouse,
bartender at the tavern, said
that after shooting Reid, Gold
en turned the gun on him and
demanded "the stuff out of
the box." Morehouse said he
gave him "about $35" from
the till.
The bartender, who lives ai.
463 North Sixth St., Central
Point, said Golden then moved
to the front door, returned
his .357 Luger revolver to its
quick-draw holster under his
spbrtcoat, and disappeared
into the night.
Golden reportedly told
Reeder today he intended to
drive home, give the money to
his wife and then give himself
up.
But heavy fog, which might
have hampered police efforts
to pursue him, proved Gold
en's undoing. Driving south
on Highway 99 a few minutes
after leaving the tavern, he
ran across the road into a
telehone pole near the Kogap
Lumber company truck scales.
(Continued on Pag 15)
Dangerous Bombs
Tossed at La Grande
La Grande-(UPD-Police Chief
O. E. Reeve told the city coun-
Lcil Thursday night that dan
gerous home-made bombs
have been thrown here.
He asked the council for an
ordinance which would give
him power for stricter en
forcement n sale of gun
powder. The council directed
City Attorney Carl Helm to
draw up an ordinance. ;
Helm said 15 and 16-year-old
youths have been ques
tioned in connection with a
home-made bomb which was
thrown onto the porch of a
resident. He said only minor
damage occurred but that this
bomb and one other found to
have been exploded in an al
ley are considered dangerous.
Prince Rainier, Grace
Return To Monaco
New York .(UPD Prince
Rainier and Princess Grace of
Monaco leave by plane Satur
day night for home to join
their two children for Christmas.
President's Voice
Expected To Be
Heard From Space
Major American
Propaganda Victory
Washington - (UPD - Amer
ica's mightiest satellite to
day relayed from space
dramatic Christmas message
by President Eisenhower
calling for peace on earth
and good will to men.
Eisenhower's re c o r d e d
message, said:
"This is the President of
the United Slates speaking.
Through the marvels of sci
entific advance, my voice
is coming to you from a
satellite circling in outer
space.
"My message is a simple
one. Through this unique
means I convey ,to you and '
lo all mankind America's
wish for peace oa earth '
and good will toward men
everywhere."
Washington -(UPD- America's
mightiest satellite, an 8,800
pound Atlas intercontinental
missile, majestically circled
the earth today and was be
lieved ready to broadcast a
recorded message by Presi
dent Eisenhower.
The new satellite, nearlv
twice as long as a cross-coun
try bus, was shot into orbit
Thursday night by the Air
Force. The feat was hailed not
only as a major American
Additional stories on
launching of the Atlas in
tercontinental ballistics
missile into oibit will be
found on page 14 of today's :
Mail Tribune.
propaganda victory but, even
more, as a giant stride toward
man's ultimate conquest of
outer space. :)
One Step Nearer
Dr. T. Keith Glennan. head
of the newly created civilian
National Aeronautic and Space
Administration, said the ac
complishment was "one more
step-a very large one-by the
United States along the way
to achieving real capability in
space technology."
Even more astonishing than
its size however is the fact
that the missile-shaDed satel
lite carries a communications
system designed to record
messages from. earth stations
and play them back on cue.
Ike's Voice Expected
The Defense Deoartment
hinted strongly that the mes
sage from the President in his
own voice would be the first
one relayed.
White House News Secre
tary James C. Hagerty at a
morning news conference
would not confirm or deny
that Eisenhower might be the
first human to ever send a
message to the world from
the outer reaches of space.
U. S. military men as well
as scientists joined in the
jubilation over the successful
launching at Cape Canaveral,
J-ia., Thursday at 3:02 pjn.
(PST).
The shot dramatically dem
onstrated the capabilities of
the Atlas which is the nation's
first intercontinental ballistics
missile able to carry a hydro
gen warhead thousands of
miles.
Performs Perfectly
For the Air Force, it was a
bull's eye on its first attempt
to shoot a satellite. An auto
matic steering system, used
for the first time on a space
shoot, performed perfectly and
the Atlas was guided rather
than thrown into the precise
orbit planned for it.
Defense Department scien
tists explained that the Atlas
is tumbling around the earth
much as a football which has
been drop-kicked.
(Continued on page 14)
DOW-JONES AVERAGES
New York - (UPD -Dow-Jones
final stock averages:
30 industrials 573.17, up
0.79; 20 railroads 154.68,
off 0.11; ,15 utilities 89.00,
up 0.11, and 65 stocks
198.61, up 0.18. Sales today
were about 3,540,000 shares
compared with 3,900,000
shares Thursday.