(Slog.
ash
iff
for
Republican
onventibiB
sir
53rd Year
Medford
16 Pages
FATAL CRASH SCENE Chief Criminal
Deputy Paul Bettiol holds the door of the
Volkswagen in which two persons were
killed last night south of the Talent junc
tion. Victims were Clarence Frank Pinker
ton, 62, of Ashland, and Kay Louise Gilbert,
21, also of Ashland. The car driven by John
j Two Me in Crash
i On 99 Wear Talent
Two persons died as the re
sult of a two car accident
about 3 pjn. yesterday near
Talent.
Clarence Frank Pinkerton,
82, of 455 Courtney st., Ash
land, was killed' almost in
' stantly when the Volkswagon
he was driving and a car
driven by John Francis Bren
mn, 18, of 737 Pennsylvania
it., Medford, collided head-on
about three miles south of
the Talent' junction.
A passenger in the Pinker
ton car., Kay Louis ' Gilbert,
21, of 439 Chestnut st., Ash
land, died last night in Rogue
Valley hospital. , ,: .
Brennan is being treated for
face -cuts in" Sacred Heart hos
pital and is reported in good
condition this morning.
Admitted lo Hospital
Gordon Earl Moore, 24, of
840 B St., Ashland, another
passenger in the Pinkerton
Volkswagon, was admitted to
Rogue Valley hospital last
night in serious condition,
but was reported in fair con
dition this morning.
State police said two cars
were following a pickup
truck going north when it
slowed to make a left turn
on to Rapp lane. The car
following immediately behind
the truck swerved to the
right to avoid a collision and
the car driven by Brennan
swerved to the left.
The Brennan car sideswip
ed a car driven by J. G.
A am exit, Puyallup, Wash.,
after smashing head-on into
the southbound Pinkerton
Porter To Shake
Fidel Castro's Hand
Washington (DPD Rep.
Charles Porter (D.-Ore.) said
he planned to fly to Cuba to
day to shake Fidel Castro's
hand and to extend his sym
pathy for the new Cuban gov
ernment. Porter was invited to Cuba
by Castro and Jorge Quin
tana of the Cuban Newspaper
Reporters association, to wit
ness war criminal trials and
a demonstration of victory by
the new government.
Porter said "I think the
new Cuban government de
serves a warm embrace and
a little more sympathy and
understanding than it has had
from this country to date."
Dr. Sly's Report on Tax Structure Breaks
Dr. John F. Sly's special
report on Oregon's tax struc
ture represents a different
point of view but breaks lit
tle new ground; Jerry Latham
said yesterday.
"He had a different ap
proach on some problems,"
Latham, chairman of the Jack
son County Chamber of Com
merce's committee on govern
mental relations, said. But,
Latham told the chamber's
weekly roundtable luncheon,
"he didn't come up with much
new."
He said Dr. Sly, whose
$35,000 report last year was
requested by the state, gen
erally "covered the same
ground" as the joint legisla
tive interim committee on
taxation did in 1955 and 1957.
Dr. Sly, director of Princeton
Surveys, presented his find
ings in a more attractive
MEDFORD, OREGON, TUESDAY, JANUARY 20, 1959
'Francis Brennan, 18, of 737 Pennsylvania
ave. Medford, can be seen at left. The two
cars collided head-on about 5 pjn. yester
day on the South Pacific highway. Bill
Young, Talent police chief, was first to
reach the accident scene.
volkswagon, state police said.
Aamodt was reported unin
jured in the accident.
The deaths were the first
and second traffic fatalities
in Jackson county for 1959.
The first two fatalities last
year also resulted jta a single
accident and occurred in Feb
ruary. Deposition Taking
In Suit Postponed
Deposition taking in the
civil suit involving tbejEagle
Point Irrigation District, CaliP
fornia Oregon Power com
pany, and 'some Eagle Point
water users was continued un
til Feb. 2 in circuit court yes
terday. The depositions pertain to
the complaint filed by Paul
D. Conrad, Fritz M. Carlson,
Herman Higday, Ann and
Howard F. Todd versus the
Eagle Point Irrigation dis
trict and J. Harvey Stanley,
Clarence J. Greb and Elbert
M. Bigham, its directors, and
Copco.
The complaint seeks nulli
fication of the district's con
tract with Copco whereby
Copco is guaranteed a portion
of the district's water for
power use in return for fi
nancing maintenance and im
provement of the district's
main canal above the power
station.
According to law the de
fendants may require the
depositions be taken to show
the nature of the suit, the tes
timony expected from wit
nesses and the materiality of
the suit.
Testimony yesterday after
noon was aimed at showing
how it was decided to bring
suit, who advised the com
plainants, and the relation
ship of each to the plaintiff.
Taking the stand yesterday
were Conrad, Carlson, Higday
and Mrs. Todd.
Russia's Mikoyan
Heading for Home
Washington (DPD S o v i e t
Deputy Premier Anastas I.
Mikoyan thanked Americans
for "their warm welcome and
friendship" today and headed
for home. He was to leave at
noon (p.s.t.) aboard a Scandi
navian Airways plane for
Europe.
form, Latham said
Dr. Sly's report was sub
mitted in hree parts. The
first, "The Economy We Live
In and the Taxes We Pay,"
was issued July 1. The sec
ond, "The Present and Poten
tial Tax Structure of Oregon,"
appeared in September. The
third, "A Tax Program in
Oregon: Conclusions and Rec
ommendations," was issued
Nov. 15.
Drl Sly said in a letter ac
companying the third portion,
"If there is any claim to
newness at all, "it must rest
on those proposals that are
somewhat beyond the ordi-J
nary, and upon a sharp focus
ing of recommendations to
ward the single objective of
an improved economic envi
ronment for Oregon."
Latham and Don McNeil,
manager of the chamber, at
Tribune
Findings of State
Water Resources
Board To Be Aired
Findings ana recommenda
tions of the Rogue river basin
study will be announced by
the state water resources
board at a special meeting in
the Jackson county court
house auditorium at 9:30 a.m.
tomorrow.
The board will hold its
regular meeting tomorrow
afternoon. "
The investigation was con
ducted at the request of the
state legislature, which point
ed out that the economy and
general welfare of the people
of southern Oregon have
been impaired '.because inves
tigations necessary for. form
ing a state water resources
policy had not been made.
John D. Davis, Stayton,
chairman of the "board, said
the board gave -consideration
to the 10 beneficial uses of
water as well as other legisla-
1 1 v e standards governing
studies of the Rogue basin.
The 10 beneficial uses are
domestic, municipal, irriga
tion, power, industry, mining,
recreation, wildlife, fish life
and pollution abatement.
In calling for the investiga
tion, the legislature noted
that current readjustments in
the forest industries require
prompt action in the develop
ment of the state water re
sources policy for the Rogue
river basin to promote full
consideration of projects so
southern Oregon could make
full use of its potential' for
growth and economic stabil
ity. ,
Crook Schools
Said Non-Standard
Prineville -DPD- Schools in
Crook county have been de
clared non-standard by the
State Department of Educa
tion, C. R. Matheny, county
school board chairman, an
nounced today.
He said the county school
system was dropped from its
conditionally standard rating
following a recent valuation
of the system by the state
education office. The princi
pal fault in the system was
found to be overcrowding of
classes.
Eight classrooms in Prine
ville schools are on double
shift and other classrooms
were found to be carrying an
excess pupil load.
tended Dr. Sly's speech to a
joint session of the Legisla
ture Jan. 10 in Salem.
Dr. Sly's findings place Ore
gon in a "favorable position"
economically compared to
Washington and California,
Latham noted yesterday. He
pointed out -that both states'
financing is on a deficit basis.
"Transportation is a bigger
problem in dealing with new
industries than taxes," La
tham quoted Dr. Sly as stat
ing. He explained that high
transportation costs were a
greater detriment than high
taxes to attracting new indus
tries into the state.
. Latham said Dr. Sly has
suggested new voting limita
tions for general levy and
bond issue elections. These
are that a three-fifths majority
be required for approval and
that a certain percentage-40
Price 10 Cents
No. 259
Supreme Court
Airs Question of
Hatfield's Heir
Thornton Charges
Improper Action
Salem - (CPU - The question
that brought on the crisis
whether David O'Hara or
Howell Appling Jr. is secre
tary of state-was being con
sidered by the Oregon Su
preme Court. Written briefs
of the opposing sides were to
be filed today.
Oral arguments were heard
before the court Monday in
the quo warranto proceeding
brought by Attorney General
Robert Y. Thornton and Mari
on County District Attorney
Hattie Bratzel. They defended
ex-Gov. Robert D. Holmes' ap
pointment of O'Hara.
Hatfield and his appointee,
Appling, were represented by
Roy Shields and Lamar Tooze,
Portland attorneys.
Improper Resignation
Thornton said that Hatfield
had not resigned properly
from his secretary of state
office before becoming gover
nor, in violation of the Ore
gon constitution. He added
that Hatfield also had failed
to turn over all books, records
and moneys to his successor
before leaving office as pro
vided for in an 1859 statute.
Thornton maintained that
Hatfield was still legally sec
retary of state because he had
not resigned unconditionally.
This statement brought a
question from the bench as
to whether he thought Holmes
was still governor. Thornton
said he had no opinion on that
matter except to '. say that
Holmes already had vacated
his office. ,
Said Accepted by People
Tooze argued that the "peo-
pie accepted Hatfield's resig
nation" by voting him as gov
ernor and that Holmes accept
ed it also by appointing
O'Hara.
He based his argument on
the p e o p 1 e's constitutional
right to rule.
First Bill Signed
"It would be most extra
ordinary to prevent Hatfield
from becoming governor by
Holmes rejecting his resigna
tion," Tooze said.
Holmes had said he couldn't
accept Hatfield's letter of
resignation on the advice of
Thornton that it was not legal.
Centennial Theme
Of Pear Festival
The ; Oregon Centennial
theme will be featured in the
Pear Blossom Festival this
year, John Watkins, president
of the association, has an
nounced. The annual Pear Blossom
Festival will be held April
10, 11 and 12 this year, in
conjunction with the spring
sports fair sponsored by the
Cater Lions club
Problems in financing the
Festival were discussed at a
planning meeting this morn
ing. Association members in
vited anyone interested in
working on the Pear Blossom
Festival to attend the meet
ing Feb. 2 in the Jackson
hotel.
Washington (DPD Alaska's
congressman, Rep. Ralph J.
Rivers (D) has introduced his
first bill a Hawaiian state
hood bill.
per cent for levies and 50 per
cent for bonds-of the total
votes cast at the preceding
general election be cast.
"I was rather reluctant to
go along with it," Latham
said of these limitations. He
said it would be difficult to
get such a high percentage of
people out to vote, especially
for a small bond issue.
Dr. Sly suggested that the
state gear higher education
financing to bond issues, La
tham reported.
Among specific tax propos
als, Latham said. Dr. Sly rec
ommends removal of the in
ventory tax and, ultimately,
the personal property tax. He
does not recommend removal
of the personal property now,
Latham explained, since this
would place a heavy burden
on other tax revenue sources.
Dr. Sly also recommended
Ite Mis fir
Economic Report
Airs Confidence
For Improvement
Washington-fDPIPresident Eisenhower today called for a
declaration of war against inflation.
In his annual economic report to Congress, he said the
nationa has snapped back strongly from last year's recession.
Production is up, unemployment is down, and there is "rea
son for confidence" that business will show further improve
ment in the months ahead, he said..
DELBERT LANDING
Named UMC Chairman
Landing Selected
Campaign Head
Of 1959-60 Drive
Delbert Landing, 943 Win
chester ave., Medford, was
elected campaign chairman of
the United Medford Crusade
for" the 1959-60 drive last
night. .
Landing is a field represen
tative of the First National
Bank of Oregon, and moved
to Medford from the Portland
office in July, 1957.
He was born in Ashland in
1926 and was graduatedfrom
Ashland High school. He at
tended Southern Oregon col
lege, spent two years with the
Navy in South Pacific during
World War II, and was a
policeman in Ashland prior to
joining the bank.
Member of Elks
Landing has been a mem
ber of the Elk's club in Ash
land for 12 years, and is a
member of the Medford Jun
ior Chamber of Commerce,
and the Jackson County
Chamber of Commerce.
He was married to Mauryne
Burton in Ashland in Novem
ber, 1947, and they have two
daughters. They attend the
First Presbyterian church,
and plan to transfer member
ship from Portland.
Landing is the youngest
man yet chosen chairman of
the annual campaign.
He said he will rely on
those who have previously
proved their interest and
leadership in the work, and
expressed confidence that
area residents, would reach
the UMC goal for the seventh
consecutive year in 1959-60.
Little New Ground
a 1 per cent gross income tax
up to the point where this
would intersect with the pres
ent scheduled rate, Latham
said.
And, he said, Dr. Sly rec
ommends a reduction in the
capital gains tax to lighten
the income tax impact on
higher income brackets.
The gross income tax would
broaden'the tax base and pro
vide that every employed per
son pay something to the sup
port of the state. The reduced
capital gains tax would en
courage more capital invest
ment in the state, and thus
provide a better climate for
industrial expansion. -
Dr. Sly also suggests that
industrial properties under
construction be exempted up
to 100 per cent completion
or for a maximum of two con
secutive years, Latham said.
But, the President warned
that U.S. economic health is
jeopardized by an upward
spiral' of wages and prices
that continued even during
the recession. He appealed to
Congress, consumers, business
men and especially to labor
leaders to join in a "relent
less war" against Ihis creep
ing inflation.
He said that labor leaders,
because of the "great power
lodged in their hands," have
a "particularly critical role to
play" in stabilizing living
costs and protecting the value
of the dollar.
Unjustified Wage Increases
Urging them to exercise
"self-discipline and restraint"
in contract demands, the Presi
dent said that wage boosts
which are not justified by
increased productivity are "in
evitably inflationary."
"They impose severe hard
ships on those whose incomes
are not enlarged," he said
"They endanger jobs by limit
ing markets at home and im
pairing our capacity to com
pete in markets abroad. In
short, they are, in the end,
self-defeating."
Lost Curb Asked
Eisenhower called on busi
nessmen to "redouble their
efforts" to keep production
costs down. In setting prices,
he said, business should keep
in mind the economies fhat
can be achieved through mass
production and expanding
markets. ,
His appeals to business and
labor were buttressed with a
warning that if wages and
prices cannot be stabilized
througn voluntary action, it
may be necessary to resort to
government controls "which
are alien to our traditional
way of life." .
(Continued on Page 11)
Duncan Urges Speed
By Representatives
Salem-UPD-Speaker Robert
Duncan (D-Medford) today
urged members of the House
of Representatives to get to
work immediately on bills
they plan to introduce this
session.
Duncan reminded members
of House rule 28 which pro
hibits introduction of new
bills after the 25th day of the
session unless they are appro
priations bills or have the ap
proval of the Rules and Reso
lutions Committee.
Ccrsfro Confined To
Bed With High Fever
Havana -(DPD- Revolutionary
leader Fidel Castro was con
fined to bed in his 23rd story
hotel suite today with a high
lever and heavy chest con
gestion described variously as
a "touch of pneumonia" and
as a "bad case of grippe."
Other tax revenues sources
which Dr. Sly believes could
be tapped, he said, include a
cigarette tax, an ad valorem
passenger car tax and a 1
per cent real estate transfer
tax.
Dr. Sly thinks Oregon will
be forced to adopt a consumer
sales tax sooner or later but
opposes levying it on any par
ticular class of product, La
tham said.
Dr. Sly would definitely
approve a general fund sur
plus, 5 per cent at least, at
the end of each biennium, he
stated.
Dr. Sly's report points out
that while Oregon's per capita
taxes are rising its per capita
income remains low, and as
a result its per capita tax
burden exceeds those in other
far western states.
mm
"Go Ahead, Mister
Us At
'
Three Individuals,
23 Businesses Are
Recognized by CC
Three individuals and 23
business and industrial firms
in Jackson county were rec
ognized by the Jackson Coun
ty Chamber of Commerce at
its annual dinner last night.
Scrolls of honor ' award
were presented to John R.
Tomlin, posthumously, for
1957, and to Alfred S. V. Car
penter and Helen Bundy Car
penter for 1958, for their per
sonal leadership in contribut
ing to the spiritual and cul
tural life of the community.
Walter Tomlin, nephew of
the late Mr. Tomlin, accept
ed the award for his uncle,
and Dunbar Carpenter accept
ed the awards for Mr. and
Mrs. Carpenter, who are out
of town.
Presented in Recognition
The awards were presented
in recognition of the charit
able contributions in this area
by Mr. Tomlin and the Car
penters. Twenty-three business and
industrial firms were recog
nized for their vision and con
fidence represented by exten
sive investments of rebuild
ing or remodeling.
The i projects were all
completed in 1958, chamber
officials noted. Additional
awards may be made for such
projects finished last year if
they are brought to the at
tention of the board of di
rectors. Chamber officials noted
that since this is the first
year for the progress award,
some details still may need
adjustment and a policy for
mulated to determine the ex-
Poll Planned in
Phoenix District
Phoenix A poll of Phoe
nix school district residents
will be taken soon to deter
mine how they stand on con
solidation of the Phoenix dis
trict with either Medford or
Talent school districts, Ernest
James, school superintendent,
sa'd today.
Ballots will be mailed out
by the superintendent's office
Feb. 1, James said.
A hearing will be held In
the Phoenix grade school
gymnasium Feb. 4. A panel of
school officials and others
will discuss and answer ques
tions on consolidation with
either the Medford school dis
trict or the Talent school dis
.trict. the superintendent ex
plained.
An election on consolida
tion will be held later and
the results will be made avail
able immediately to the Jack
son county school reorganiza
tion board for its considera
tion, James said.
Washington -40PD- President
Eisenhower has nominated
Sheldon T. Mills of Portland,
Ore., a career diplomat, to be
ambassador to Jordan.
You Ain't Bothering
All"
1 tent of remodeling which
would qualify for the award.
The total value of the 23
Dusinesses wmcn built or
were remodeled is $946,118.
chamber officials noted.
Grand Jury Indicts
Mrs. Maxine Click
Mrs. Maxine A. Click, 46,
Ashland, was indicted by the
county grand jury Monday
afternoon for first degree
murder, District Attorney
Thomas J. Reeder reported.
Mrs. Click was scheduled
to be arraigned in circuit
court before Judge Edward
C. Kelly at 1:30 o'clock this
afternoon.
Mrs. Click was arrested by
Ashland city police Jan. 6
after she notified them of a
shooting. She is charged with
shooting her husband, Hous
ton James Click, 47, in their
Ashland home, Jan. 6.
The Ashland woman, moth
er of nine children, had pre
viously waived her. rights to
an attorney and preliminary
hearing in district court. She
is being held in the county
jail without bail.
Hatfield Approves
Budgets by Holmes
Salem (DPD- Gov. Mark
Hatfield has advised the
Joints Ways and Means com
mittee that he has approved
72 budgets presented by re
tiring Gov. Robert D. Holmes.
The budgets, totaling $14,-
434,375 in general fund ap
propriations, amount to about
five per cent of the total
budget.
A total of 104 appropria
tions bills reached the Joint
Ways and Means committee
and have been referred to
subcommittees for study.
Morse Raps Lack of NW
Funds in Ike's
Washington Sen. Wayne
Morse (D-Ore.) today issued
the following statement on the
President's budget message:
"Once again the President's
budget message indicates a
completely inadequate pro
gram of resource development
for the Pacific Northwest.
"The $20 million requested
for John Day dam is one half
of the amount that could be
used by the Corps of Engi
neers for the coming fiscal
year and represents further
delay in progress on this great
multi-purpose project.
"Failure of the Administra
tion to include one cent for
Green Peter dam in Linn
county is in furtherance of
the Administration'! back
Six Cities Bid
For Conclave;
$300,000 Figure
S. F. Mayor Waiting
Turn With Proposal
Des Moines, Iowa-flJPB-Chi-cago
raised its cash offer to
day in its scramble to win
the 1960 Republican National
convention.
Stung by its failure to get
the Democratic convention,
Chicago officials added $50,
000 to their cash bid, bringing
the total to $300,000, without
much of an increase in the
estimated worth of the total
package.
Leads Delegation
Mayor Richard J. Daley of
Chicago led the city's delega
tion before the GOP Conven
tion Site committee, which is
hearing spokesmen for six
cities in a two-day round of
hearings. Republican Nation
al Committeeman Morton H.
Hollingsworth and Democrat
ic National Committeeman J.
M. Arvey also were in the
group.
Chicago's original offer was
$250,000 plus extras said to
be worth $104,000. Dropping
some of the extras to increase
the cash offer, the delegation
offered a new package said
to be worth $365,500.
San Francisco to Bid
Mayor George Christopher
of San Francisco was waiting
to appear before the commit
tee with a cash offer of $350,
000 plus other benefits said
to be worth an additional
$205,000.
Some GOP leaders consid
ered Chicago and Philadel
phia as the strongest contend
ers for the convention be
cause they would provide a
more neutral setting.
Los Angeles, Philadelphia,
New York and Miami Beach
also were bidding for the
convention.
Chicago-ffiPD-A Democratic
national committeeman today
planned a campaign to sup
port his charges that a "dis
torted" cash bid led to rec
ommendation of Los Angeles
as the party's 1960 conven
tion site.
Committeeman Jacob Ar
vey said statements "from
Democratic Chairman Paul
Butler's office" had "distort
ed" Chicago's bid for the con
vention by listing it as $250,
000 against a $350,000 bid by
Los Angeles.
"Actually, Arvey said,
"our offer came to over $350,
000, counting $204,000 in oth
er benefits."
Moreover, Chicago Mayor
Richard J. Daley had prom
ised, "if need be, to match any
other city's cash offer," he
said.
Refusing to speculate on
why he thought Butler down
played Chicago's offer, Arvey
said the national chairman
"certainly was not neutral."
"I don't believe he kept his
promise," he said, "to stay
out" of influencing the Site
committee's selection.
DOW-JONES AVERAGES
New York (DPD Dow
Jones final stock averages:
30 industrials 595.69, up
1.29; 20 railroads 167.20, up
0.63; 15 utilities 92.42, un
changed, and 65 stocks
208.14, up 0.44. Sales to
day were about 3,680,000
shares compared with - 3,
840,000 shares Monday.
WEATHER
FORECAST: Partly cloudy to
night and Wednesday with val
ley fog clearing by Wednesday
noon. Continued cool. Low to
night 25. High Thursday 42.
Temp.
Highest Yesterday 47
Lowest this Morning 27
Our Skies Tonight
Sunset today 5:09 p.m.
Sunrise tomorrow 7:36 a.m.
Moonset tomorrow 4:47 a.m.
Full Moon Saturday
Venus, the brightest planet,
sets this evening at 6:05 p.m.
Each night for the next four
months Venus will set later
and a little further north on
the horizon.
Budget
ward looking no starts pol
icy. When completed this dam
would provide annual bene
fits totaling almost $4.5 mil
lion per year. That is what
would be given up for another
year under the .Administra
tion's refusal to ask construc
tion funds for this project.
"There are other major de
fects in the budget request
which I shall take up before
the Appropriations Commit
tee of both Houses.
"The people of Oregon can
be assured that 1 shall con
tinue to fight for adequate
public works appropriations
for our state -despite the fail
ure of this Administration to
make realistic requests on
these projects.