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MEDFORD, OREGON, MONDAY, JANUARY 30, 1961
No.
SJ fjj.1 llillieielllllllJ.liIUlllllWI.M mWUHUM
it:--
SWIFT
270 I r f WilVf ,1 J
Hatfield
All Segments of
Industry Will
Attend Meeting
Parley Scheduled
For Salem Feb. 14
Salem-IUPD-Gov. Mark Hal
field today announced he has
called a "conference on the
economic affairs of Oregon"
for Feb. 14 here to seek ways
to bolster the state's economy
-particularly in the lumber
field.
About 50 persons, repre
senting all segments of Ore
gon industry, will be invited.
To Correct 'Dislocations'
Purpose, Hatfield said, is to
correct "certain dislocations"
in the economy. He identified
one of the most severe as the
plywood market.
The conference will be in
two phases. On the 14th dele
gates will make preliminary
suggestions for action, to. be
taken. The meeting will ad
journ for about two weeks to
enable more data to be col
lected. The group then will recon
vene here to make final rec
ommendations. Federal Liaison Sought
One part of the program
will be liaison with the Ken
n e d y administration as to
what part the federal govern
ment could play, -
Hatiield said he will con
sider a fact-finding tour of
the state's economically hard-
hit sections if the conference
deems it necessary.
Hatfield reiterated his hope
that the legislature will act
soon on two bills that would
enable International Paper
Co. to begin its pulp mill at
Gardiner. A 1,000 man work
force at the mill means a pay
roll of about $50 million to
southwest Oregon, he said.
Welfare Criticized
Hatfield took another ver
bal poke at the State Welfare
commission restating that the
state agency has shown "dis
regard" for the intent of both
the governor and the legisla
ture.
He quoted Commissioner
Gerson Goldsmith, Portland
as commenting on an issue
last October and saying: "I
think the legislative action is
irrelevant." This Hatfield
said, "typifies" the commis
sion's attitude.
Wasco Man May Be
Named U.S. Attorney
Portland (UPD Dist. Atty.
Harry Hogan of Wasco county
is reported under' considers
lion as U. S. Attorney for
Oregon.
WEATHER
FORECAST: Cloudy and windy
with occasional rain through
Tuesday. Rain moderate to
heavy at times tonight and earlv
Tuesday. Low tonight 43. High
Tuesday 53.
Temp.
Highest Yesterday 35
Lowest thl Morning 30
Precin. tn 10 a.m. Today 01
Our Skies Tonight
Sunset today 3:23 p.m.
Sunrise tomorrow 7:37 a.m.
The Moon rises 4:46 p.m.
today and Is In Apogee.
Full Moon Jan. 31
PROMINENT STAR
Capella, hlch overhead 8:47 p.m,
VISIBLE I'LANKTS
Venus, low in west .. . 8:51 p.m,
Mars. In the west 1:13 a.m.
(all times Pacific Standard)
Laotian Troops Advance
Toward Royal Capital
Vientiane, Laos - IVPH - Loa-
tian government troops ad
vanced toward the royal cap
ital of Luang Prabang were
reported today to be meeting
stiff resistance from pro-Communist
Pathct Lao rebels ef
fecting an organized retreat
toward the strategic plain of
Jars.
The rebel "Voice of Laos"
radio claimed that Pathet Lao
units captured among Hien,
a post east of Luang Prabang.
The broadcast, reported by the
Communist New China News
agency, said the Pathct Lao
units killed or wounded 40
government soldiers and took
Calls Conference
RENDEZVOUS SCHEDULED WITH
HIJACKED
Recife. Brazil - IUPD - A U. S. admiral
today arranged a rendezvous at dawn Tues
day aboard the hijacked liner Santa Maria
to negotiate with the ship's rebel commander
for removal of the 820 captive passengers.
Rear Adm. Allen Smith Jr., commander
of the Navy's Caribbean Sea Frontier, will
board the U. S. destroyer Gearing for the
meeting with Capt. Henrique Galvao on the
Santa Maria. 35 miles off the Brasilian port
of Recife.
The Navy's announcement indicated that
the passengers might be taken off at sea by
U. S. warship rather than landed in port.
Four Navy destroyers were ordered to the
area where the Santa Maria was circling
today.
Duplication of
Power Facilities in
State Said
Salem - IUPII - The electric .
power user is paying through
the nose for an unhealthy du
plication of power facilities in
Oregon, Public Utility Com
missioner Jonel C. Hill today
warned the Senate Commerce
and Utilities committee.
He testified on a bill to re
quire certificates of conveni
ence and necessary for power,
,gas,,andtelephone utilities, in
oroer 10 prevem luiuiei uvci-
lapping of facilities.
The power discussion gave
a hard-hitting sendoff to the
legislature's fourth week - a
week during which every
thing from a three-way tax
tug-of-war to mothers impa
tient to get their youngsters
off to school promised to rock
the lawmaking body.
'There is a great deal of
duplication of electric facili
ties in the state, over and
above that necessary to serve
the customers, Hill said.
Power users are forced to
support these extra facilities,
he told the committee, and
must pay for facilities that
Ashland Man Dies
In Auto Crash
Ashland - Ashland's second
traffic fatality in less than a
month was recorded at 2:15
a.m. today when Sheldon
Charles Wilcox, 33, of 770
Iowa st., Ashland, died from
injuries suffered when his car
flipped over and skidded on
Highway 99 inside the north
ern city limits.
Ashland police said Wilcox
had entered the city limits
and driven under the railroad
underpass on Highway 99.
Tire tracks show the car went
onto the shoulder of the high
way, hit a ditch, then hit a
rock flipping the car over,
police indicated. The vehicle
skidded on its top for a short
distance. Wilcox was pinned
in the car and his skull was
crushed, police said.
Wilcox' death is the second
in Jackson county this year.
The first occurred Jan. 7 when
Elmer William Swift. Tekoa,
Wash., died of injuries re
ceived in a Jan. 2 one-car ac
cident. Lilwiller's Funeral home,
Ashland, is in charge of fun
eral arrangements.
125 others prisoner, including
80 South Vietnamese troops
Western military sources
said the 12th Loatian Infantry
battalion driving north from
the captured town of Muong
Kassv were making very slow
progress against rebel forces
seeking to withdraw to the
Salou Phou Khoun road junc
tion. The government battalion
was delayed by fallen trees
land boulders placed alons the
single dirt road by withdraw
ing Red troops, the sources
said. Later the battalion ran
into stiff rearguard fire from
the rebels, the source said.
regon Economy
LINER ON
that he would
takes office
friend" and
ship of sanctuary.
doorstep early this morning in Rio, Quadros
refused to confirm it and snapped: "When
I have something to say about the Santa
Maria I will
have nothing
Costly
are failing to earn to capacity.
Competition Loss Feared
Sen. Andrew Naterlin (D-
Newport), a member of the
committee, countered by de
claring he feared that rates
would increase if competition
were removed.
"Do you think under a mo
nopoly the rates will go
down?" he asked Hill. Nater
lin has sponsored a bill for
permissive regulation of com
petition. Hill said over the long run
removal of overlapping facili
ties would benefit the custom
er by decreasing costs of sup
plying power.
The public utility commis
sioner also told the committee
"duplication is imminent in
the Boardman industrial re
serve if industry comes in."
"Gentlemen's a g r e emenls
have a limited value where
there is a healthy, husky load
involved," he said.
Hill said power companies
serving 84 per cent of the
state's customers as well
gas and telephone companies,
support the bill, SB 42.
Meanwhile, the income tax
payer, whom everyone want
ed to help, appeared in dan
ger of being lost in a political
tax wrangle that left an un
friendly gap between the
views of Gov. Mark Hatfield,
the Interim Tax committee
and two powerful senators
Walter Pearson (D-Portland)
and Boyd Overhulse (D-Mad-ras).
The House Tax committee
opened hearings today on a
bill to revise and reduce pen
sonal income taxes, and a bill
for a net receipts tax, before
deciding whether a three-cent-a-pack
cigrattte lax is
needed.
Two Youths Still
Hospitalized Today
Larry Neuman, 18, one of
three Medford High school
students injured in a three
car accident south of Cottage
Grove Friday night, was re
ported in "fairly good" condi
tion at a Cottage Grove hospi
tal today.
A second youth, James H.
Stever, 17, was transferred to
Rogue Valley hospital. The
third student injured in the
accident, Michael Phillips, 18,
student body president at
Medford High school, was
taken to the home of his par
ents. The youths were en route
to the annual "senior week
end" at Oregon State college
In Corvallis at the time of
the accident.
LUNCHEON CANCELLED
Ashland There wil be
no Tuesday noon luncheon
of the Ashland Chamber of
Commerce this week, accord
ing to Velma Jones, chamber
secretary. The luncheon meet
ing has been cancelled due
to the awards banquet lo be
held Tuesday night in the
Mark AnJony hotel. A junior,
senior and middle aged citizen
of the year will be named at
life banquel. It is sponsored
by the chamber, Kiwanls and
Junior Chamber o f Commerce.
TUESDAY
In Sao Paulo, incoming Brazilian Presi
dent Janio Quadros cast doubt on reports
offer Galvao and the stolen
ship safe haven after he is inaugurated Tues
day.
A Rio newspaper Sunday quoted Bra'
zilian President-elect Janio Quadros, who
Tuesday, described as an "old
to have assured him and the
But confronted with the story at his
not say it in this manner. I
else to say right now,
First Bill for
Reorganization
Lands in House
Salem, Ore. - IUPII - A much-
attacked government reorgan
ization bill that would abolish
the board of control as the
governing body for state in
stitutions was introduced in
the House of Representatives
today, at the request of Gov.
Mark Hatfield.
The proposal already has
been denounced by . the two
top stale officials who sit with
Hatfield on the board - Sec
retary of State Howell Ap
pling Jr. and Treasurer How
ard Belton.
Others Arrive
Two other reorganization
bills arrived in the House to
day, one to set up a mental
health division within a new
cabinet department of social
services, and the other to set
up a veterans affairs division
in the same department.
Some dozen more reorgan
ization bills are expected to
land in the House and Senate
in the next few days.
The mental health division
would take over supervision
of Eastern Oregon Slate hos-'
pital, Dammasch, Midcolum-
bia home, Fairview home, and
Oregon State hospital.
OSC Bill in House
A long - promised bill to
change the name of Oregon
State college at Corvallis to
Oregon State university land
ed in the House, along with
bills to change Southern and
Eastern Oregon colleges of
education to simply Southern
Oregon college and Eastern
Oregon college.
Other bills would prohibit
discrimination in employment
because of membership in an
organization, permit county
courts to exchange lands, in
cluding forests, and shift pow
ers from county school super
intendents to rural school
boards.
"Now How About Survivors From This Other
Plane That
o
b t & wy3J- J 1 UMKW Wf'T"- 'llTiCT"' K
hithrq ft nrfft Jk :
- -a-., u
MOVING INTO MANOR Workmen to
day started moving 12 families into the
Rogue Valley Manor, new retirement apart
ment on Barneburg hill. They are the first
of more than 200 families who will move
there during the next two months. Walter
M. Higgins, executive director, said that
Masked Gunman
Holds Up Local
Service Station
A masked gunman, de
scribed as "older than a teen
ager," held up the all-night
Regal Service station, 1006
South Central ave., early Sun
day morning and fled witli
$45 from the station's cash
register.
Walter Troy Reynolds, a
part-time employee at the sta
tion who was the only one on
duty at the time of the rob
bery, told police the gunman
locked him in an oil storage
room while he rifled the sta
tion's till.
Reynolds reported the rob
bery to police at 4:30 a.m. A
Medford police officer on rou
tine patrol drove past the
station during the robbery,
but said he thought the gun
man was an employee of the
station and did not stop, v
Reynolds told .police- l h e
man had a dark wool stocking
pulled down over his face.
The robber had one hand in
his right pocket, Reynolds
said, and told him , there was
a gun inside. ' ; .
Medford police searched the
area around the gas station,
and the sheriff's office set up
road blocks on the roads lead
ing out of the city, but no sus
pects were apprehended.
Reynolds said he was get
ting some oil from the storage
room at the time of Ihe rob
bery. He said the gunman
walked up and told him to
get into the storage room. He
then locked the door behind
Reynolds and told him to
"keep quiet, or I'll kill you."
Reynolds said he heard the
man open the cash register
and then run from the station
in a northwesterly direction.
No car was seen. Reynolds
unlocked the storage room
door with a key he had in his
pocket, and then called police.
The attendant described the
man as about 5 feet 9 inches
tall, and weighing about 155
pounds. Ho was wearing
dark leather jacket and light
colored panls, Reynolds said
Police said the gunman took
only cash from the station
till, leaving the change be
hind.
Washington -(UPli- President
Kennedy will hold a news con
ference Wednesday at 7 a.m,
(PST), the White House an
nounced today.
We Downed?"
persons moving in now will occupy the
first three floors. Work on the interior in
the apartments of the upper floors will con
tinue. Fourth and fifth floors are expected
to be ready for occupancy after Feb. 9;
sixth and seventh after Feb. 23, and the
eighth, ninth and tenth after March 9.
JFK Sees Programs
Impaired if House
Rules Battle Lost
Washington -IUPII- President
Kennedy feels that his ability
to deal with Soviet Premier
Nikita Khrushchev may be se
riously impaired if his admin
istration loses the fight over
enlarging the House Rules
committee, close associates
said today.
Kennedy's deep feelings
about the rules fight became
known as continuing surveys
on Capitol Hill showed that
Tuesday's crucial House vote
would be extremely close.
Programs Would Suffer
A qualified source said there
was no question that Kennedy
felt his legislative program,
plus his international program
and his ability to deal with
Khrushchev would bo serious-
Gold Hill Man '
Dies in Hospital
Harold Charles Burnelte,
28. of Gold Hill, died at
Sacred Heart hospital Sunday
from a gunshot wound in the
neck.
Burnetle was shot on Jan.
13 in the home of Mrs. Nellie
Leona Dunwody, 37, of Gold
Hill. Mrs. Dunwody admitted
to holding the rifle at the lime
of the shooting, which she
said was an accident. How
ever, Burnetle is reported to
have told his physician during
one of the few timos he was
able to talk clearly (hat he
accidentally shol himself.
Ralph Litlleticld, also of Gold
Hill, was a witness to the
shooting.
Mrs. Dunwody was taken to
Rocky Bulle jail in Portland
this morning by Sheriff Joe
Walsh. She was sentenced to
a six months jail term recently
in district court, after plead
ing guilty to the misdemeanor
charge of pointing a gun at
another person.
Mrs. Dunwody received
news of Burnetle's death be
fore leaving for Portland this
morning, sheriff's deputies
said.
District Attorney Alan B.
Holmes said this morning he
would not prosecute the case
further, since Burnettc had
repeatedly told his physician
that he shot himself.
Funeral arrangements for
Burnelte will be announced
by Siskiyou Funeral Service
directors of Chapel in the
Trees Mortuary.
Juveniles Arrested
For 'Car Prowls'
A 14-year-old Medford boy,
who was taken into custody
Saturday night on a charge of
being a delinquent Juvenile,
later admitted to police that
he is responsible for a number
of "car prowls" In recent
weeks.
His confession implicated
another 15-year-old boy, who
also admitted breaking into
several cars, and was taken
into custody.
Both youths told Medford
police that they took such
things as knives, flashlights
and money from the glove
compartments of approximate
ly a dozen cars during the past
month.
Ihe younger youth was
taken Into custody Saturday
when police, investigating a
report of a family disturbance.
found him fighting with his
mother. He was taken Into
custody at his own request.
Both boyi were confined In
the county juvenile detention
hom0
ly impaired by an administra
tion loss.
The President was pictured
as feeling that failure to break
the conservative grip on the
committee would dissipate
much of the good feeling gen
erated overseas by Kennedy's
inaugural address.
Tuesday's showdown vote in
the House will be on a propos
al by Speaker Sam Rayburn
of Icxas to liberalize the rules
group by trying to increase its
membership from 12 to 15.
In the past, Ihe two con
servative Democratic mem
bers of the 12-man group of
ten have joined with the four
Republican members to block
legislation from going to the
House floor.
Southern Democrats faced
the prospect of political re
prisals Jio 'liiftller which way
they turned lnitho rules flgnt
On the hand, they were get
ting numerous warnings from
home of political reprisals at
the polls in the next Demo
cratic primary if they deserted
the conservative coalition and
supported Rayburn.
On the other hand, they
were being told that if they
opposed Rayburn s plan, their
i n J I u e n c e in Washington
woulii drop close lo zero dur
ing the Kennedy administra
tion.
Some of Rayburn's support
ers predicted thai Democratic
defectors would get no favors
in committee assignments, or
federal patronage. And they
would have almost no chance
of winning congressional ap
proval of job-creating projects
at military insinuations or
rivers and harbor develop
ments in their district.
Rural School Budget
Groups To Meet
The Jackson county rural
school budget committee to
night is expected to make its
final decision on the pari of
the new fiscal year budget
pertaining lo the county cur
riculum materials center.
Meeting at 8 o'clock in the
county school superintend
ent's office, the committee
will decide on how much
money lo allow this cver-ln
creasing function of the
county school department
This section of the budget
comes up first for decision
since the county must make
its application for matching
funds under the National Ed
ucation Defense Act by March
1.
The budget group held
organization meeting a week
ago. Tentative outlines of the
three budget sections, office,
curriculum materials center
and special education, were
distributed then. The group
will start formulating the new
budget during a scries of reg
uiar meetings.
Accidental Deaths Claim
In Oregon During Past Week End
By United Prom International
Oregon chalked up four ac
cidental dcaths'ovcr the week
end, a young Adrian, Ore.,
woman died In a Wyoming
crash, and a former Clacka
mas newspaperman died in a
California accident.
Sheldon Charles Wilcox, 33,
Ashland, died when his car
flipped over In Ashland,.
Mrs. Ruth Williams, - 64,
Portland, was Injured fatally
and her husband, Asa, 62,
was Injured seriously late
Saturday in a one-car accident
Washington - IUPII - President Kennedy declared som
berly today that "the American economy Is in trouble" and
the news from abroad "will be worse before it is better."
In his first State of the Union Message delivered per
sonally to a joint session of Congress, the 43-yoar-old chief;
executive sounded a call for swift action to fhore up a
receding U. S. economy, thwart Soviet-Chinese designs for
world domination and thus lead America safely through the
onrushing "hour of maximum danger."
Kennedy painted a gloomy picture of the slate of tha
union whose stewardship he took over 10 days ago.
He renewed his pledges to seek liberal programs ho
outlined during the election campaign and said he also would
ask for a temporary increase in the duration of unemploy
ment benefits and for a tax break for companies spending
money to create jobs through plant expansion.
The President spoke for 43 .
minutes before a jam-packed
audience in the House of
Represen tatives chamber
where he began his national
political career 14 years ago.
He was Interrupted 39
times by applause, mostly
from Democrats.
But Republicans applauded
just as vigorously as the Dem
ocrats Kennedy's pledge that
his administration "will not
distort the value of the dollar
in any fashion."
Democrats generally hailed
the speech but some Republi
cans and southern Democrats
challenged some portions of it.
Democrats echoed Senate
Democratic Leader Mike
Mansfield's comment thai the
President had "laid the cards
on the table" and "asked the
American people and the peo
ple of the world to face up to
their responsibilities." But Re
publicans, while applauding
some of his remarks, look is
sue with parts of the speech.
Thev said he was placing
blame for the nation's troubles
on the doorstep of the prev
ious administration so that ne
can take credit for improving
it."
Kennedy bluntly confessed
he was "staggered" during the
first 10 days In the While
House by what he had learned
of "the harsh enormity of the
trials through which wc must
pass in the next four years,
"Each day we draw nearer
the hour of maximum dan
ner " the President said.
As ho did' iiv his Inaugural
address, he warned that days
of hard work and sacrifice
are demanded of the Ameri
can people.
Says Danger Great
"I sneak today In an hour
of national peril and national
opportunity," Kennedy de
clared at the outset of his
speech. "Before my term has
ended, we shall have to test
anew whether a nation organ
ize dand governed such as
ours can endure. The outcome
is by no mcons certain. The
answers are by no means
clear."
Kennedy spoke on the birth
day of the late President
Franklin D. Roosevelt.
He quoted from Roosevelt,
saying:
"In the words of a great
president In closing his final
state of the union speech 16
years ago: 'We pray that we
may be worthy of the unlim
ited opportunities that God
has given us'."
"Each day we draw nearer
the hour of maximum dan
ger," Kennedy said.
He reported "The American
economy Is in trouble," and
that crises produced by tense
relations with Russia and
Communist China multiply
daily, with solutions increas
ingly difficult. He warned
that life in 1961 "will not be
easy" and "there will be fur
ther set-bucks before the tide
is turned."
"But lurn it we must," he
said in a prepared 4,600-word
address, disclosing in rapid
fire order a series of execu
tive actions he has taken, plus
recommended legislation he
wants promptly from the
House and Senate.
While his message bore a
clear stamp of concern over
the bleak foreign picture,
Kennedy turned first to the
state of the national economy
and what he intended to do
about the continuing slump.
Refusing "to stand helpless
ly by" while the situation
worsens, Kennedy Informed
Congress of an omnibus anti
recession program to bo sub
on Highway 199 about 60
miles southwest of Grants
Puss.
Richard Barnelt, 14, Bend,
was killed Saturday when the
tnbaggan he was riding struck
a tree about 12 miles west of
Bend.
Richard Falsi, 2, Canby,
died Friday night after falling
off a car scat and striking his
head on the floorboard.
Day Churchman, 38. a for
mer employee of the Oregon
City Enterprise Courier, was
killed near Lake Tahoe 1 n
mitted within two weeks.
He said he would ask for
larger and longer unemploy
ment compensation benefits,
more food for the unemployed
and their families, a new hous
ing program under a new
housing and urban affairs de- .
partment, a higher minimum
wage and a tax break for
companies spending money on
sound plant expansion.
The President welcomed
open, peaceful competition
with Russia and Red China,
but warned Americans against
being "lulled into believing
that cither power has yielded
its ambition for world domi
nation." Counseling the free world
to remain so strong that ag
gression by any nation would
be "clearly futile," Kennedy
said his administration still '
planned "to explore promptly
all possible areas of coopera
tion with the Soviet Union."
He specifically invited Rus
sia, with other nations, to
join the United States in pre
paring for space ventures to
Mars and Vonus and in mu
tual development of satellites
for weather forecasting and
communications.
"Both nations would help
themselves as well as other
nations removing these en
deavors from the bitter and
wasteful competition of the
cold war," he said.
To lead America through
deepening world tension, Ken
nedy disclosed he had ordered
Defense Secretary Robert. S.
McNnmara "to reappraise our
entire defense strategy." Ha
directed McNnmara to submit
preliminary conclusions by
the end of February with a
view to quick budgetary, leg
islative and eecutive action.
Kennedy directed three im
mediate steps in the defenso
area. He ordered a quicis
build-up of airlift capacity so
America's conventional mili
tary forces could "respond,
with discrimination and speed,
to any problem at any spot on
the globe at any moment 3
notice."
He ordered the Polaris sub
marine construction program
stepped up at once by using
the unobligated shipbuilding
funds now instead of waiting
for the next fiscnl year which
does not begin until July 1.
He said this would advance
the Polaris program by nlna
months.
The President also directed
prompt acceleration of the en
tire U.S. missile program
Pending completion of tho
McNamara study, he said
Ihcre would have to be better
organization and decision
making to cut down on waste
ful duplication and time-lag
"that have handicapped tha
whole family of missiles."
Kennedy tackled interna-.
1 1 o n a 1 economic problems
from two directions, foreign
aid and Ihe dollar gap. Ha
wanted congressional author
ity to overhaul the entire for
eign aid program with mora
flexibility for "short run
emergencies" and the right to
make commitments for long
term development projects
overseas.
Ho also said greater empha
sis should be given to the rola
of recipient nations to assura
greater social justice, broader
distribution of the American
aid and on the local level, bet
ter public administration and
tax systems. This added up to
belief that governments on
the receiving end should not
regard American aid as a one
way street.
(Continued on Page 2)
Four Lives
California Saturday along
with Basil D. Benedict, 47,
Fair Oaks, Calif., when their
car skidded on Ice and col
lided with a bus. Churchman
and Benedict, were employees
of Ihe Sacramento Union.
Mrs. Peggy Hunter, 18,
Adrian, was killed Sunday
in a collision between a sports
car and a truck five miles
west of Rock Springs, Wyo.,
on Highway 30. Her husband
Jerry, 19, and their 7-month-old
daughter, Janet, suffered
minor injuries.
o