Economists Split on Possibility of Recession Toward End of 1960
Russian 'Walk'
Dashes Hope of
Arms Agreement
Washington - HOT - Russia's
walkout at the Geneva dis
armament talks dashed hones
of an arms agreement for the
remainder of President Eisen
hower's term, officials said
here today.
They also expressed fear
that the Communist action
may jeopardize separate nu
clear test ban talks, also tak
ing place in Geneva,
Policy Extension Seen
Today's walkout of the So
viet and Red satellite dele
gates from the 3-month-old lu
nation disarmament confer
ence appeared to many offi
cials to be an extension of So
viet Premier Nikita Khrush
chev's summit-wrecking poli
cy of refusing to deal with the
Eisenhower administration on
major issues.
Officials said the United
States would be willing to ne
gotiate disarmament in the
United Nations General As
sembly as the Russians sug
gested today. But they noted
that the U.N. is more a forum
for exchanging broad views
than a place for down to earth
negotiation.
Cautious Attitude
Officials adopted a cautious
wait and see attitude for signs
that the Soviets would simi
larly break off the atomic
talks involving the United
States, Britain and Russia.
Khrushchev had threatened
in recent weeks to shift the
10 -nation general disarma
ment talks to the U.N. What
surprised officials here was
the suddenness of the move.
It took place before the Rus
sians even heard the latest
western proposals that were
to be presented this week.
Ammunition Dump
Explodes in Cuba
Havana - (UPII - An ammuni
tion dump explosion, the sec
ond such disaster to rock
Havana in 3W months, touch
ed off a wave of bitter anti
U.S. comment throughout
Cuba today and semi-official
charges of sabotage.
At least 10 persons were
reported arrested in connec
tion with the blast, which oc
curred Sunday night in a
major Cuban army munitions
depot in the Cayo Cruz sec
tion of Havana harbor.
Official reports put the toll
at two dead and 200 injured.
The explosion hurled huge
sections of the stone wall of
the ammunition dump 100
yards out Into the bay. The
concussion pushed in down
town storefronts.
t, ii tar t, id la j
MISS CALIFORNIA Newly-crowned Miss 18, of Los Gatos, and right. Miss Sacra
California of 1960, Suzanne Marie Reamo, mcnto, first runner-up, Linda Marie Hines,
10, who competed as Miss San Diego, is 18, of Rio Linda. Miss Reamo lives in La
flanked by runncrs-up after she won the Mesa and is a student at San Diego Slate
title at Santa Cruz. Left is Miss San Jose, College.
second runner-up, Gayle Lee Countryman, (UPI Telepholo)
Medford
Tribune
Regional Edition
Page 2
Stock Prices Edge
Higher in Moderate
Opening Session
New York-(Uri-Stocks edg
ed upward in moderately ac
tive dealings today.
Buying filtered into some of
the blue chips and scattered
specials. Du Pont ran' up
around 2 points and Union
Carbide a half.
The oils which got a mild
play last week on word that
gasoline stocks had their
sharpest weekly decline of the
year, were easier on balance.
Texaco and Socony Mobile
lost around V4.
Steels and autos ruled mix
ed, while electronics were
nearly 3 in Zenith, around 2
i- Motorola trading cx-divi-
Russians Asked To
Reconsider Walkout
Washington - HOT - The
United States today called on
Russia to reconsider its walk
out from the Geneva disarma
ment conference, branding the
Soviet action as "Irresponsi
ble, deplorable and disap
pointing." A FAMILY AFFAIR
Kumla, Swcdon-flJPB-Soercn
Llthell. 21, got married Sun
day. Waiting to kiss the bride
were his father who got mar
ried last month and his 74
year old grandfather who
took a bride two months ago
Two Ships Stuck in
St. Lawrence Mud
Ogdcnsburg, N.Y. - (UPD -The
cruise ship North Ameri
can with 272 passengers
aboard and the British freight
er Inver stuck fast early today
in St. Lawrence river mud
about 30 miles apart.
Tugs were unable to free
either vessel. The North
American, a throe-deck cruise
ship, ran aground on a mile
long sandbar in the port of
Ogdensburg Friday. The In
ver apparently drifted out of
its shipping channel Sunday
and became embedded in mud
east of Snow Lock, near Mas-
sena.
dend and more than a point
in Beckman.
Vendo and Universal Match
picked up more than 2 each
in the vending machines. Min
nesota Mining lost more than
a point and Western Union
ran around 1V4.
Mental Patients
Riot in Montreal
Montreal - IUPI) - Mental
patients sparked a riot by 350
inmates at the maximum se
curity Bordeaux jail Sunday
night and one convict was
shot from a wall trying to
escape before the disturbance
was crushed.
The riot broke out during a
baseball game between guards
and mental patients in the
south courtyard of the jail at
the north end of Montreal
Island.
A group of prisoners sud
denly dashed to the jail's med
ical office where they ripped
open metal filing cabinets
and set fire to their contents
and to bedding.
In the courtyard, several
prisoners placed benches
against the jail's 27-foot high
inner wall and began to climb
them. Only two prisoners
manager to reach the top.
House Approves
Compromise Bill
On Excise Taxes
Washington-IUPII-The House
by voice vote stamped final
approval today on compro
mise legislation to continue
corporate and excise tax rates
and forestall a $4 billion loss
in revenue.
The Senate was expected to
approve and send the legisla
tion to the White House for
the President to sign it before
the midnight Thursday dead
line. The compromise bill would
continue existing tax rates for
another year with only one
change.
Would Close Loophole
The depletion allowance for
mining and similar industries
cannot be computed on the
value of finished manufactur
ed products. This would close
a court-created tax loophole
the Treasury had warned
might ultimately mean a reve
nue loss of $600 million a
year.
The legislation postpones
for another year a reduction
to 47 per cent in the existing
52 per cent corporate tax rate
It also would postpone sched
uled reductions in excise taxes
on liquor, cigarettes, new au
tomobiles and auto parts and
accessories and travel fares.
It would also postpone re
peal of the 10 per cent tax on
local telephone calls.
New York - lUPli - John Cur-
tin, 25, had a lover's spat with
his fiancee, Beatrice McCar
thy, 21, Sunday, took the en
gagement ring from her fin
ger and tossed it from the
window of a taxi. Curtin still
was looking for the $355 ring
today.
One Forecaster
Sees Recession
Around Corner
Washington - UPI' - Leading
business economists were split
sharply today over whether
there will be a recession near
the end of 1960 but they
agreed that a boom is unlikely-
Most of the experts predict
ed modest improvement in
the economy in the second
half of the year, but one fore
caster said there were signs
that the nation's fourth post
war recession was just around
the corner.
The views were expressed
at the midyear Business Out
look Conference sponsored by
the U.S. Chamber of Com
merce. There was general
agreement that:
-Interest rales would con
tinue to decline, resulting in
lower home mortgage costs
this fall and early next year.
-Lagging steel production
would pick up within two
months to keep pace with in
creased demands from auto
and appliance manufacturers.
-Construction spending in
1960 would slip below the
total spent in the previous
year, nearly S56.5 billion in
1959 for the first time since
the end of World War II.
Predicts Recession
The most pessimistic out
look came from Frank E. Mor
ris, research director of the
Investment Bankers a s s o ci -
ation. who said "the signs of
an imminent recession are
growing stronger all the time.
I don't think they should be
ignored."
Dr. Emerson P. Schmidt,
chief economist for the cham
ber, forecast further "modest"
economic improvement to record-high
levels despite a few
weak spots in the economy.
Schmidt said government
spending, exports, steel pro
duction, investment in new
plants and equipment and
home building all would rise
in the last half of the year,
to contriute to the slight eco-,
nomic improvement.
Good Steel Year
L. S. Hamaker, speaking
for the steel industry, forecast
a nearly record year with pro
duction of 115 million tons of
ingots. He said an "inventory
adjustment" has caused sharp
layoffs in recent months but
predicted the industry would
rebound in the last half of the
year and continue into 1961.
Miles L. Colean, a consult
ing economist representing
the construction Industry, said
the outlook for easier money
would benefit builders and
home - buyers. He said the
overall picture was "mildly
optimistic."
But Colean said construc
tion spending this fall would
fall about 2 per cent below
the 1959 total, mainly because
of a slowdown in privateo
home building.
Kennedy Men Shy
From Endorsement
Glacier Park, Mont. - (UPD -Supporters
of Sen. John F.
Kennedy backed away today
from an attempt to get him a
presidential endorse ment
from Democratic governors
like that given Vice President
Richard M. Nixon bv nearlv
all Republican governors.
Gov. Nelson A. Rockefeller
of. New York was a conspic
uous holdout among GOP gov
ernors declaring their support
for Nixon for the presidential
nomination. Counting two ter
ritorial governors. 16 of IB
Republicans attending the
52nd annual governors' con
ference or who were contact
ed by telephone agreed to the
pro-Nixon declaration.
Uncommitted Delegation
Rockefeller, who repeated
that he would endorse no can
didate before the GOP Na
tional Convention next
month, said it would be in
appropriate for him to sign.
He explained that he would
head an uncommitted delega
tion to the convention from
New York.
A similar move was con
sidered, but apparently aban
doned, to get an endorsement
from Democratic governors
favoring Kennedy for the
Democratic presidential nom
ination. Kennedy backers were said
to feel they could make a good
showing only by applying
pressure which might offend
governors regarded as friend
ly though still publicly un
committed to the Massachu
setts senator.
A Kennedy camp break
down of the 34 Democratic
governors listed five publicly
pledged to Kennedy, three be
iieved to favor Kennedy and
six listed as "leaning" to
Kennedy. Twelve were count
ed as anti-Kennedy and the
others as completely uncom
mitted. Meeting Opened Sunday
The governors annual meet
ing opened informally Sunday
night with a reception at the
Glacier hotel in a lakeside
setting of rugged and snow
clad mountain peaks in this
national park. A discussion
of education was set for to
day's opening business ses
sion. Govs. Harold W. Handley
of Indiana, J. Hugo Aronson
of Montana and Christopher
Del Sesto of Rhode Island cir
culated the Nixon endorse
ment. Fifteen of 17 reached
approved the document and
the sponsors expected Gov.
Cecil H. Underwood of West
Virginia to join after a delay
ed arrival.
wf i
Magnify Your Savings
niMFC RROW TO DOLLARS
When You Patronize Park and Shop Merchants
No Meter Money Needed Here
look For Thit PARK SHOP
SIGN. A $2 Purchase Givei
You 1 Hour Free Parking.
5TH ST.
IlLiJUUL-JUL
MAIN ST.
House Approves
Itemized Spending
Washington. - IUPII -The
House today approved a pro
posal which would require
every member of Congress to
make an itemized account of
all travel he makes at govern
ment expense.
By voice vote the House
agreed to an expense account
amendment which the Senate
tacked onto the money bill
carrying funds to run Con
gress in the year which be
gins July 1.
The House added language
which sponsors said further
strengthened the amendment
and then it was approved.
Some "no" votes were heard.
It now goes back to the Sen
ate for final congressional
approval.
Truman Calls for
International force
San Francisco -IHPD- Former
President Harry S. Truman
Sunday night called for crea
tion of an international police
force "strong enough to un
dertake such Dolice action as
j the United Nations deems nee-
Typhoon Lashes
North Philippines
Manila -UPD-Typhoon Olive
smashed the northern Philip
pines today with murderous
winds and torrential rains,
leaving 116 persons dead or
missing, 10,000 homeless and
causing damage running into
millions of dollars.
Navy authorities gave little
hope for the rescue of 16 fish
ermen who were reportedly
clinging to the mast of their
sinking boat off eastern Lu
zon, the Philippines' biggest
island.
"Our ship in the area can
not approach the fishermen."
a Navy spokesman told United
Press International. "The-ship
captain radioed us that giant
waves were hampering the
operation."
AUTOMOBILE SERVICE
Guildford. England - IUPI) -The
Automobile association
lived up to its motto of serv
ice to the motorist Sunday
when it sent a patrolman to
aid a woman reported having
hysterics in her car. He re
ported he patched up the
quarrel the woman had with
her husband and the couple
drove off happy.
Besides Rockefeller, Gov.
Paul Fannin of Arizona held
off from signing because his
state GOP convention had en
dorsed Sen. Barry Goldwater
as a favorite son candidate.
He wanted to consult Gold
water first.
ANYWHERE IN THE WORLD
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Washington -HIPP- The As
sociation of American Rail
roads has urged Congress to
end what it calls "discrimina
tory tax assessment policies"
in 31 states.
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