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CARS MIRED IN SNOW Cars are shown mired in the
snow-clogged Belt Parkway at Brooklyn, N.Y. A thousand
people were trapped in their cars during the height of a
snowstorm over the week end until emergency operations
American Ship
Passengers Start
Homeward Trip
Recife, Brazil - IUPII - Forty
two Americans, who spent 12
hectic davs as hostages of
Portuguese rebels aboard the
captive liner Santa Maria,
made final preparations to
day la Iheir trip home
through the courtesy of the
ship's owners.
The Colonial Navigation Co.
promised to pay passages for
the 607 persons who boarded
the Santa Maria at Lisbon,
Madeira, La Guaira, Venezu
ela and Curacao only to lind
themselves pawns In a sea-going
revolution.
A spokesman for the com
pany said losses incurred by
the abortive revolt aboard the
SantE Maria would amount to
S180.000. He said the ship
will sail home empty to Lis
bon, via Portugal's Cape
Verde islands.
Bound for Miami
The Americans tentatively
were expected to arrive by
air in Miami Tuesday morn
ing.
The Netherlands govern
rhent returned its subjects by
sir. The Santa Maria's sister
ship, the Vera Cruz, picked
up (he Portuguese, Spanish
and other European passen
gers for the return trip home
Sunday.
As one of the last acts In
the bizarre voyage, a Re
quiem mass was held aboaH.
the Santa Maria Sunday nftc
noon for the ship's officer
who was killed when the reb
els, led by Portuguese exile
Henrique Galvao, seized the
ship Jan. 22.
Third Fnch-Tregoff
Triaf in Sixth Week
Los Angeles IUPII The third
murder trial of Dr. R. Bernard
Finch, 44, and his sweetheart,
Carole Tregoff, 24, moved In
to its sixth week today with
the prosecution Indicating it
may conclude its case before
Friday.
The defense then would
have its chance to call wit
nesses, including Finch and
Miss Tregoff, to testify about
the July 18, 1959, gunshot
slaying of the surgeon's so
cialite wife.
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Kennedy's Message
Pledge Reaffirmed
To Hold Official
Gold Price at $35
(Continued from Pago 1)
Kennedy reaffirmed his
pledge to hold the official
U.S. price of gold at $35 an
ounce, to avoid trade and in
vestment exchange controls,
and to carry forward this
country's national security and
economic aid programs.
Those who fear weakness
In the dollar will find their
fears unfounded," he said.
Those who hope for specula
tive reasons for an increase in
the price of gold will find
their hopes in vain."
Among short-term propos
als, Kennedy said U.S. banks
should be allowed to pay high
er interest on foreign - owned
than American deposits as
Dart of "a maximum competi
tive effort to attract and hold
dollar balances which might
otherwise be converted into
gold."
He also said he would keep
in effect Elsenhower's ban
against Americans holding
gold abroad. The President
Dlaced "everyone on notice
that those few Americans who
are templed to speculate
against the dollar will not
profit In this manner.
The proposed reduction In
duty-free Imports by tourists
and ban on tise of "tax ha
vens" by American firms were
among a series of long-term
recommendations by Kennedy.
Others Included:
-"Energetic" govern m e n t
leadership to help American
industry and agriculture drive
for more exports markets.
-A "major new program to
encourage foreign travel In
the United States."
-Steps to keep American
goods "competitively priced"
with those of other countries.
-Placing American export
ers "on a basis of full equality
with their competitors in oth
er countries" in obtaining
credit from the U.S. Export
Import Bank.
-Maintaining restrictions by
which not more than 20 per
cent of economic assistance
and similar aid funds, which
up
.'il
s ,tea,rm. - rm-
i could rescue them. A ban on passenger car traffic will
stay in effect until at least Tuesday to give crews a chance
to clear roads.
(UPI Telephoto)
totaled $2.6 billion in 1800,
can be . spent outside the
United States.
-Pressing for prompt re
moval of the few quota re
strictions which still exist
against American exports In
other countries.
-Urging "those Western
European countries with
strong gold reserve positions
to eliminate the restrictions
they still maintain limiting
the opportunities for their
citizens to invest In the United
States and other foreign coun
tries." -Calling upon other Indus
trialized countries of the free
world to step up their share
of contributions for economic
assistance to the less-develop
ed countries and the common
defense.
-Having Defense Secretary
Robert S. McNamara review
possibilities for saving money
in logistic support of U.S
forces overseas. f
Kennedy outlined other
sleps, as well, for reducing the
military outpouring of dollars
abroad, which at $3 billion a
year is one of the biggest
single items involved in the
balance-of-payments problem.
He said the United States
would, where' appropriate.
urge Allies who are financial
ly capable of doing so to buy
the newer weapons and weap
ons systems of this country.
The President said this
country would continue a
policy, begun last November,
of emphasizing procurement
at home for U.S. military
forces abroad "wherever prac
ticable, even though some in
creased budgetary cost may be
incurred."
"Since foreign procurement
of this nature has amounted to
almost $1 billion a year, sig
nificant savings in dollar out
flow can be expected," Ken
nedy said.
Kennedy said the situation
"justifies concern but not
panic or alarm." He said the
balance of payments deficit
was $3.8 billion last year,
about the same as in 1D5D.
The President also stressed
that the U.S. gold reserve.
which now stands at $17.5
billion is "some 29 of the
gold stock of the entire free
world." He said that "in any
reckoning of International as
sets and liabilities, the United
States has a strong solvent
position."
"In short, powerful re
sources stand behind the dol
lar." he said, renewing his
pledge that "the full strength
of our total gold stocks and
oiner international reserves
stands behind the value of the
dollar for use if needed."
Alba Schools Send
School Materials
A package containing sam-
i pies of school materials used
j in the Alba, Italy, school sys
tem was recently received in
Modford and Is now being cir
culated nniong the city's grade
schools.
The package was sent by
the children of Alba to the
children of Medford. It con.
tains such things as books, art
work and samples of writing
Alba Is Medford's sister city
City Councilman Robert
Baccus. who is also head ol
the city's sister city commit
tee, said the package was ap
parently sent in return for a
similar package sent to Alba
Ilby Medford school children
last fall.
Baccus said the materials
have so far been to Jefferson
and Wilson schools.
Big Industrial
Issues Lead in
Stock Decline
New York-IUPD-Stocks were
generally easier today with
most of the decline among the
big Industrial issues.
Du Pont dropped around
2Vi points to give the Dow
Jones Industrial average a loss
of nearly 2 points at midmorn
ing. Youngstown, Bethlehem
and U.S. Steel were all down
fractions, U.S. Rubber sagged
1 Vi, Texaco fell a point in the
oils and gold shares slipped
as much as I't in Dome
Mines.
Kannacott Down
. General Motors lost close to
a point in the autos, Kenne-
cott 3A in the coppers, Coca-
Cola 1A in the soft drinks,
and RCA nearly a point in the
electronics.
Gains ran to a point or more
In Air Reduction, American
Photocopy, Gerber Products,
General Tire, Paramount Pic
tures, Standard Financial, and
Norfolk & Western Railroad.
Guerrillas Attack
Laos Army Convoy
Vicnliane, Laos-luni - Com
munist - backed Palhet Lao
guerrillas today attacked a
royal Laotian army convoy 25
miles north of here on the im
portant Vientiane-Luang Pra
bang highway.
The army canceled a second
convoy which was scheduled
to leave here for Muong Kas-
sy, site of the rear headquart
ers of a column that drove
from Vientiane to Sala Phou
Khoun.
Government forces have
been bogged down by a short
age of gasoline in their drive
on the rebel-held Plain of
Jars with its strategic air
fields.
Sources said a Laotian task
force under the command of
Col. Oudone Sanaikone has
been unable to get ammuni
tion and other supplies for
two days because there was
not enough gasoline to send
truck convoys.
Rocket Experiment
Called Successful
Washington -MPU- Space sci
entists report that a rocket ex
periment conducted Sunday at
the Wallops Island, Va., sta
tion successfully met its pri
mary objective.
The primary objective was
to study the behavior under
gravity-free conditions of liq
uid hydrogen, the high energy
fuel which will propel space
craft to other planets and the
moon.
A second objective - recov
ery of a camera package
mounted in the rocket's nose
-was not achieved when rough
seas prevented picking up the
package.
Department Issues
Party Suggestions
The Medford Recreation de
partment lias issued a party
suggestion booklet containing
ideas on how to celebrate
three February holidays.
The special days are Valen
tine's Day. Lincoln's birthday
and Washington's birthday.
The booklets will be distrib
uted to youth organizations.
Requests for the booklets
should be made to the depart
ment in the city hall.
In addition to party ideas,
the booklet contains sugges
tions for special foods, decora
tions and games.
Repeal of School
Reorganization
Draws Frowns
Salem- IUPII - Key legislators
frowned today on a new bill
to repeal the 1957 Oregon
school district reorganization
law, but agrpd it may signal
revision of some distasteful
portions of the act.
Senate education committee
chairman Monroe Sweetland
(D-Milwaukie), and House Ed
ucation Committee Chairman
Tom Monaghan (D-Gresham),
gave the repeal measure little
chance of passage.
But both predicted the
controversial 60 per cent vote
now required to resist reorg
anization will be reduced to
a simple majority.
Said Proven Unfair
The repeal measure was in
troduced in the Senate, where
Sen. Ben Musa (D-The Dalles)
headed a list of 5 senators and
10 representatives sponsoring
the bill.
Musa said the law has prov
en unfair to thinly-populated
areas, and said he hoped at
least to win amendments to
tone down the law and "pro
tect minorities."
Sen. Walter Pearson, anoth
er Sponsor, said the law has
"shown it is undemocratic and
unworkable ... I hope this
will force the legislature at
least to amend it."
State Democratic Chairman
Robert S t r a u b, however,
praised the law and said he
would like to see "reorganiza
tion proceed more rapidly."
The Eugene senator said
school district reorganization
has become "an emotional is
sue." He added, "to improve
the quality of education it is
necessary to reduce the num
ber of districts."
He said he probably would
not fight the move to permit
a simple majority of. voters to
reject reorganization.
Monaghan, author of the
House Bill to permit a simple
majority to turn down reorg
anization, indicated the repeal
bill would die in his commit
tee if it got that far.
Reading Workshop
Scheduled Feb. 18
Ashland - A reading work
shop, sponsored by the Ash
land public school office in
cooperation with the Jackson
county public school office,
will be held at the Ashland
Junior High school Saturday,
Feb. 18.
' The workshop, for both ele
mentary and secondary teach
ers of Jackson county, will
have as its theme "The Im
provement of Reading at All
Levels." Dr. Donald Moore,
assistant professor of English
at Southern Oregon college,
will be the principal speaker.
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Rusk Asks New United Nations
Plan To Bring Peace To Congo
nr. . imn countres. not iust TI s:
Washington - lUPD-Secretary j
of State Dean Rusk called to-j
day for a new United Nations
plan to "bring peace" to The
Congo, and give the people
there a chance to work out
their own form of govern
ment. ' He said the United States
was consulting with other in
terested governments to see
whether the U.N. mandate can
be "clarified or strengthened"
to give it the authority to
carry out such a plan. .
Rusk told his first news
conference that the plan must
"preserve the integrity" of
The Congo.
He said the United States
hoped that new approaches to
the problem discussed would
"uncover elements of consen
sus out of which more satis
factory answers can be
found."
In both The Congo and
strifetorn Laos, Rusk said, the
difficulty was to find a solu
tion which would end the out
side pressures on those coun
tries which threaten to drag
them into the East-West war
as potential battlegrounds.
Await Soviet Reply
On Laos, Rusk said the So
viet Union has not yet replied
to a British suggestion to re
vive the old three-nation In
ternational Control Commis
sion consisting of representa
tives of India, Canada and
Poland to try to end the war
and bring political order. He
indicated that the United
States was not in favor of a
many-nation conference on
Laos even if the Russians re
fused to reconvene the ICC.
In his general endorsement
of new U.N. efforts to solve
the Congo crisis, Rusk said
"the primary responsibility
rests, of course, with Presi
dent Joseph Kasavubu and
other Congolese leaders; the
United Nations is there to
help. The object is an Inde
pendent and united Congo, an
object which cannot be achiev
ed if disorder continues or
if The Congo is drawn into
rivalries which originate else
where."
Rusk declined to say wheth
er the United States would
agree, as part of the new U.N.
approach to The Congo, to re
lease imprisoned former Pre
mier Patrice Lumumba, who
has many supporters and is
the favorite of the Soviet Un
ion. On other major points, Rusk
said:
-Serious problems between
Russia and the United States
will not suddenly disappear
simply because there is a new
administration in Washington
or more civility in the words
being used on both sides in
the cold war. He said Rus
sia's release of the RB47 air
men removed a troublesome
problem between the two
countries but no one should
suppose there will be any sud
den elimination of big differ
ence's. -rlt is not- easy to achieve
realistic disarmament without
Red China and this is a prob
lem which President Ken-
i
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Her parents, of course, are the
good fairies. They are helped by
their savings account.
f f f i i i 1 i' :'
imfiiiifHIHlltiiHW.'
Savings plus earnings mean
security for this little lady now,
and later, s college education.
does make a difference
nedy's disarmament experts
are studying. . "
-Economic and social condi
tions in Cuba which led to the
rise of Fidel Castro can be
blamed principally on''prior
regimes but the1 members of
the Organization ol American
States, including the United
States, could have done a bit
Recjional Edition
Medford
MEDFORD, OREGON, MONDAY, FEBRUARY 6, 1961
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more. The neglect at present
rests squarely on Castro.
-A "major cooperative ef
fort" with all Latin America
is needed to build economies
and foster democratic institu
tions there. He jaid the Ken
nedy administration thinks
more In terms of "accelerated
development" of Latin Amer-
Page 2A
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