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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (Aug. 25, 1960)
MEDFOHD MAIL TRIBUNE, MEDFORD, ORE. THURSDAY. AUGUST 25, I960 Oil Industry Faces Major Challenge: Demand for Its Products to Double by 1975 By HENRY J. BECHTOLD UPI Financial Editor New York OIPD The oil in dustry has a tremendous chal lenge ahead - to satisfy a de mand for its products that is and is expected to reach more expected to double by 1975. than 6-billion barrels in the The nation's annual petro- next I5 years- leum consumption now is a But the success of the oil whopping 3.25 billion barrels, industry in meeting this chal- Mary Martin Grief-Stricken Over Hammerstein's Death, But Broadway Show Goes On New York -tUPD- Mary Mar tin Tuesday night choked down her grief over the death of Oscar Hammerstein II, and in the best show-must-go-on tradition gave her 262nd per formance in the famed lyri cist's last play. Then, after the curtain had fallen on "The Sound of Mu sic," Miss Martin could aban don the role of show business trooper and become once more a woman who has suffered a great personal loss. She threw herself in actor Theodore Bikcl's a r.m I and wept. "Please excuse me," she said tearfully. "Oscar has al ways said the words, Tonight I have none of my own." Then she fled to her dressing room. Wept for Hammaritein Miss Martin wept for the man who gave her her first audition for Broadway when the was just 17 and a self-described "hick" fresh out of Weathcrford, Tex. Many years later Hammer stein was destined to be the writer-lyricist who created for her the role that pushed her permanently into the hall of theatre greats - that of Nellie Forbush in "South Pacific." Hammerstein died Tuesday of stomach cancer at the age of 65. His body was cremated and private funeral services will be held bv his family to- and dancers stood day at Hartsdalc, N. Y. His, hushed gloom. the longest and most demand ing performance of her career. Bikel and fellow cast mem bers Marion Marlowe, Patricia Neway and Kurt K a s z n a r trickled in later, each looking more glum-faced than the one before. Backstage, actors, singers about in friends in the theatre will pay tribute to him at a memorial service in about two weeks. Hundreds of persons called the Lunt - Fontanne Theatre boxoffice Tuesday to ask whether Tuesday night's per formance had been cancelled. They v:re told that Hammer stein's family and his partner, composer Richard Rodgers, were convinced he would want the show to go on. Demanding Performance Miss Martin's car pulled up to the stage door an hour be fore the scheduled 8:30 p.m. curtain. She hid her face from a curious crowd and dashed into the empty theatre to pre pare for what must have been Several of Miss Martin's friends had expressed fear thai she might choke up on the lyrics Hammerstein wrote for the first number she sings in the musical, the title song, which is her favorite: My day in the hills Has come to an end I know. A star has come out To tell me its time to go, But deep in the dark green shadows Are voices that urge me to stay ... And stay Miss Martin did, through two hours of smiling laughing, dancing and sing ing Hammerstein's songs as though her heart really weren t broken. lenge depends heavily upon the percentage depletion pro vision of our federal tax struc ture remaining unchanged, ac cording to oil experts. This taxing method has been under fire since Congress set it up 35 years ago. It has been examined by many ses sions of Congress during this period but has remained in tact. And now the industry is fac ed with a 50-50 possibility that percentage depletion will be taken up by the next Con gress. The Democratic party platform lists a reduction in percentage depletion as one way to recapture revenues for its increased spending pro gram. - - The oil industry says that while a temporary jump in in come taxes from oil produc ers might result, the govern ment would lose income over a period of time. Percentage depletion mere ly recognizes that oil in the ground is the producer's capi tal, and that this capital is depleted by the operation of an oil well. To prevent an oil producer's capital from being taxed as income, he is permitted to de duct from his gross income for tax purposes- up to 27.5 per cent of the value of the oil and gas he produces dur ing the year. It is limited, how ever, to 50 per cent of the net income of each lease or prop erty. Because of this limitation, one oil expert notes, the 27.5 per cent is cut to about 23 per cent. The deduction which ap proximates the capital value business, of the oil in the ground, pro- Depletion is not a special vides the producer with part benefit for oil and gas pro of the funds needed to stay in ducers only. It is an across-the- Malaria Exists Organization Says Havana, Cuba, (Science Service)-Malaria still exists in about 30 per cent of the Americas, the Pan American Health Organization - World Health Organization has re ported here at the twelfth an nual meeting of the direct ing council of PAHO. To date, WHO'S efforts to blot out malaria in every corner of the world have freed nearly 53 million peo ple from the threat of the disease in the Americas alone. Another 9 million are in areas under surveillance to see if eradication methods have stamped out all the tough spots. Malaria is completely stamped out in Chile, the U.S., Barbados, Martinique and Puerto Rico. Other countries have stopped the disease in isolated areas or large sections. In Canada, Uruguay, the Bahamas, the Virgin islands and several other islands, the disease never existed or has disappeared without eradica tion measures. In more than 22 per cent of the Americas area, erad ication measures are in full swing. Houses are being sprayed with dieldrin and DDT to kill 20 species of Anopheles mosquitoes that carry malaria. In areas such as the Amazon Basin where houses have no walls, the natives are using salt with an antimalarial drug added. National budget appropria tions in 1960 for eradication programs have almost dou bled in Colombia and Jamaica since 1958. Mexico, which is still spraying houses period ically, has the largest single antimalaria budget for 1960, $6,720,000. The 8 per cent of the Americas area not presently engaged in eradication pro grams lies largely in Brazil, a vast country with more than its share of malaria prob lems because of the remote Amazon Basin and the coun try's sheer size. Cuba has riot started active spraying, but is making a preliminary sur vey, and Haiti's campaign was- temporarily interrupted by economic difficulties. Various species of mosqui toes in several locations have developed resistance to the sprays. Although the num ber of physicians associated with eradication programs has been reduced, more spray men are now at work board provision applying to all but a few minerals. The rates for different minerals vary to take into account different economic factors. Percentage depletion was devised by Congress not only to avoid taxing the producer's capital, but to encourage the search for critical minerals. Congress realized that looking for oil hidden far below the surface of the earth was an extremely risky business. Men are drilling wells deep er all the time. And, the deep er a well is drilled, the deeper a prospector has to go into his pocket. One oil spokesman points out that since only one ex ploratory well in nine uncov ers any petroleum - and only about one in 50 makes a com mercially successful strike -the prospector must be prepar ed to invest large sums of cap ital without any guarantee of success. It now can cost well over $100,000 and sometimes over $1 million to drill a wild cat well. What would happen if per centage depletions were cut back? Most oil firms say the first and most serious result would be a falling off in ex ploration and drilling. "You can't look for oil and you can't bring it up out of the ground unless you have a lot of investment capital at rea sonable rates," they state. The supply of investment capital for oil production is closely linked to the depletion provision, according to the oil men. This is true not only of reinvested earnings, but also I of loans, stock issues and other sources of operating funds, Cutting percentage deple tions would dry up many of these sources, and this would mean less drilling, fewer dis coveries and eventually less oil for homes and industry, the oil firms assert. All this, they claim would lead straight to higher product prices. They also say a substantial increase in producers' costs in the form of higher income taxes would cut income and dividends throughout the oil industry, and this in turn would reduce government rev enue from income taxes on dividends. Oldster Receives Youngster's Appeal Truro, Mass. - Full of ro mance, 13-year-old Jane Briar wrote a nojte appealing for a pen pal, sealed it in a bottle and tossed the bottle in the sea. Her message washed ashore only 200 miles away. A fellow named Harley George picked it up. George, a retired car penter, is 69. EVER TASTED 1 Mrs. Budge's Fudge? Scads of Exhibils! DOUGLAS COUNTY f FA I It I AUGUST 2S-28 Some critics of the deple. tion principle claim it is a golden gimmick to enrich the oil industry. The oil firms, are quick to point out, however, that their after-tax earnings in all the years percentage de pletion has been in effect have averaged 9.6 per cent of in vested capital, against a 10.4 per cent average for all manu facturing companies. The oil industry says the depletion principle has been incomparably effective for a generation. "Who can doubt that it will prove as effective for the gen eration that lies ahead," it adds. BEWARE Of miJATIOHS LOOK fOR THt HAPPY unit 000 TOPS IN QUALITY! LOW IN PRICE TIME for BETTER BREAKFASTS with THESE SUPER SPECIALS from EASTSIDE MKT. I Some Local, Some Calif. 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