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REVENUES CHOPPED-Treasury Secretary C. Douglas Dil
lon, testifying before the Joint House-Senate Committee, to
day said the recession has chopped at least $1.5 billion from
the 1962 federal revenues forecast by former President
Eisenhower.
Washington (UPD Treasury
Secretary Douglas Dillon told
Congress today Kennedy ad
ministration economic experts
look for an upturn in the na
tion's economy "some time"
during the quarter which
starts April 1.
At the same time he esti
t mated that the recession has
' cut at least 51.5 billion from
the 1962 federal revenues
forecast by former President
Dwight D. Eisenhower in his
outgoing budget.
Present Interest Ceiling
Dillon, testifying before the
Joint Economic committee,
also said the new administra
tion feels it can operate with
in the present i'A per cent
interest ceiling on long-term
bonds. He said the interest
rate issue a hot one in the
last Congress - "has become
an academic one."
Dillon did not say whether
the loss of federal revenues
caused by the recession would
wipe out the $1.5 billion sur
plus forecast- by Eisenhower
for the government budget in
fiscal 1962, which starts July
1.
With a Kennedy administra
tion budget review scheduled
for later this month, many
government officials expect
.'the 1962 budget to be in the
red. This is because of recession-caused
revenue losses,
Kennedy's antirecession meas
ures and expected increases
in defense spending.
Revenues To Be Less
Dillon said "it is now clear
that revenues in fiscal 1962
cannot help but be less" than
the S82.3 billion projected by
Eisenhower in his final bud
get, which went to Congress
Jan. 16.
City, County
Over Welfare
County welfare labor crews
were temporarily taken off
a city work project at Pres
cott park last week because a
disagreement over who should
provide their transportation to
the park the city or the
county.
The disagreement was ap
parently at an end today, how
ever. A welfare labor crew had
been working at the park for
about one week using a
county truck when County
Judge Earl Miller informed
the city last Wednesday that
it would have to provide the
transportation from then on.
City Manager Robert A.
Duff said he told Miller that
the city does not have ade
quate transportation to carry
workers for any distance, and
that this would be impossible.
Trucks Withdrawn
Miller, of the opinion inai
... ,,im,nf ihmild not
used on a city project and;
claiming that the truck was
needed elsewhere, ordered the
truck taken away from the
welfare workers for this pur
pose. That was Wednesday. Wcl
fara wnrkers have not been
m ir. Prosivitt nark since then,
Economy Upturn
In Next Quarter
Seen by Experts
although they have been us -
(UP! Telephoto)
Dillon said Eisenhower's
estimate of $46 billion of cor
porate profits in calendar 1961
was "too high, possibly by as
much as $3 billion. In addi
tion personal income may fall
somewhat short of the $415
billion" Eisenhower esti
mated. Construction To
Start on Motel
Construction of the new 44
unit Medford motel, to be lo
cated adjacent to the Medford
hotel, is scheduled to begin
later this month, according to
hotel manager Danny Marmo.
Marmo said the announce
ment last week that the hotel
has been granted a $350,000
loan by the Small Businesses
administration assures the ho
tel of having adequate financ
ing for the new structure.
Total cost is estimated at
$465,000.
Last night the hotel opened
its plush, new cocktail and
dancing lounge, called the
Bar of Music. The lounge is
located on the lower floor of
the hotel, where the Crater
banquet room was formerly
located.
The hotel plans to build a
new banquet room capable of
seating 400 persons along
with the new motel structure.
Both new facilities will be
erected immediately west of
the existing hotel and will be
bounded on the north and
south by Main st. and an al
ley. The new units will ex
tend to within approximately
75 feet of Oakdalc ave.
Officials Make Peace
Labor Transportation
ing the same truck for trans
portation to other county pro
jects. Today, however, Judge Mil
ler told the Mail Tribune he
will permit the welfare work
ers to use a county truck,
which has been transferred
by the county to the welfare
workers for welfare purposes
to get to the park. This will
not be the same as using coun
ty equipment, he said.
Miller indicated that he had
changed his mind when in
formed that the city had no
means of transporting the
workers to Prescott park. He
emphasized that the welfare
workers themselves have been
available to work at the park
all along. Transportation was
the only problem.
"Community Park"
Duff, who said this morning
that he has not yet been in
formed of this turn of events,
said yesterday that he dis-
agrees with Miller s stand on
Prescott park. He said; We
feel that it is a community
perk, not necessarily a city
park, and that the county
should have as much interest
in it as the city."
Another spokesman at the
city
hall agreed with Dull;
1 and declared:
-ifj
cinch
Cold War Items
Would Be Kept
From Agenda
Shorter Session
Seen Beneficial
United Nations, N.Y. - il'PD -
The United States today urged
deferment of all cold war
items from the agenda of the
reconvened 15th General As
sembly, but ruled out any
"trade or deal."
U.S. Ambassador Adlai E.
Stevenson, in a statement
made shortly before the ses
sion was to reopen, proposed
that only the few matters es
sential to the conduct of the
United Nations be taken up
at this time.
The United States is going
into the resumed session firm
ly determined to do all it can
to alleviate the cold war "in
stead of aggravating it," Ste
venson said.
"We also feel that the world
would benefit from shorten
ing the session and avoiding
acrimonious debate. We think
a period of relative quiet
would contribute to a better
international climate for ser
ious negotiation on such vital
subjects as disarmament."
Today s meeting was expect
ed to be minus the fanfare
that marked the opening ses
sion last Sept. 20 when Soviet
Premier Nikila S. Khrushchev
and a host of top world lead
ers attended the first meeting.
Ghana Head To Speak
Ghana President Kwame
Nkrumah, the only chief of
government on hand for this
session, was scheduled to ad
dress the assembly this after
noon after the call to order
by President Frederick H, Bo
land of Ireland.
The opening of the adjourn
ed session was clouded by the
failure of the Western powers
to reach agreement with the
Soviet bloc on shortening the'
agenda by scrapping some
"cold war", items on the list.
To Scrap Resolution
Despite this failure, the So
viet government newspaper
Izvestia announced that Rus
sia had decided to scrap its
resolution calling on the Uni
ted Nations to condemn U.S.
"aggression" in the U2 and
RB47 plane Incidents. This
news came as a surprise to the
U.S. delegation.
Aside from the obvious is
sues of the Congo and the
Kremlin's continuing attempt
to oust Secretary General Dag
Hammarskjold in favor of a
three-man presidium, the 38-
item agenda contained a host
of potential cold war items.
These included disarmament,
Hungary, Tibet, Cuba's "ag
gression" charges against the
United Stales, and Korea.
(See siory on Page 10)
Net Receipts Income
Tax Bill Approved
Salem-M!-The House Tax
Committee decided Monday to
allow those who earn $600 a
year or less in Oregon to pay
no slate income tax.
With this and one other
amendment, the committee
voted 5-2 and sent the net re
ceipts income tax bill to the
with a "do pass" rccommenda-!
tion.
Navy Withdraws
Task Force From Congo
Washington - ft'PD - The
United States today abruptly
withdrew a small Navy task
force heading towards the
Congo and said the United
Nations did not need it.
the people of Medford arc not
the only users of Roxy Anne
(Prescott park)." He pointed
out that the county has often
helped with park improve
ments in the past particu
larly with roadwork
Duff said yesterday that it
was Miller's idea In the first
place to have welfare work
ers employed at Prescott park.
Ironic Twist
To make the whole disagree
ment ironic, it was disclosed
at the county parks and rec
reation meeting last night that
a proposal is in the making
to turn the 1,740-acre Prescott
park over to the county for a
county facility.
Although Duff has indical
cd to members of his staff
that this probably would he
acceptable to the city, Judge
Miller apparently was not yet
aware of the proposal at the
time he ordered the truck
taken away.
City-County Parks Director
Robert Haworth who was
caught in a cross-fire since he
works under both Dufi and
I Miller welcomed the news
j that welfare labor crews
; would again be working at
Prescott park. He paid this
morning that he hopes to have
a crew ready to go up there
(again by tomorrow mining
Gov
i
to
MIX
S. .u-Gov,
Mark Hat-
field Monday charged a Ways
and Means subcommittee with
'irresponsible fiscal proced- i
ure and said the Finance De
partment will refuse to coop-:
erate with any more vague
budget cut orders from the
legislature.
The governor came under
fire for his remarks today
from legislative leaders.
In the future, Hatfield said.
the legislature will have to
specify exactly what proposed
expenditures are to be trim
med before the Finance De
partment will make the
changes.
Hatfield, speaking at a news
conference, said a subcommit
tee order last week to trim
the $2.5 million agriculture
department budget by a half
Unemployment in
County Reaches New
High in February
Unemployment in Jackson
county in February reached a
new high for the current fiscal
year, John J. Palton, manager
of the local office of the Ore
gon Employment service, an
nounced today.
He said that 2,323 persons
filed claims for one week of
Committee Gives
Rural School
Budget Approval
The Jackson county rural
school budget committee gave
its final approval to the coun
ty school office budget last
night.
The Jackson county school
superintendent's office must
now total the revised figures
and fill out the official budget
sheets. No proposed overall
total had been set.
Tentative date for the budg
et's public hearing will be
April 10, according to County
School Supt. Alf Mekvold.
The budget election will be
held May 1.
The committee quickly ap
proved the salary recommen
dations of a special subcom
mittee which suggested: $9,-;
750, a $250 raise for Mek
void; $7,500, a $300 raise to
Administrative Assistant Bca
lous Cox; $7,200, a $1,100
raise to James McDonald, cur
riculum materials center di
rector; $4,463, a $227 raise for
the secretary-office manager j
in the county superintend-!
cnl's office; $3,831, a $201 !
raise for a newly created posl- j
tion of secretary-office mana
ger in the curriculum mate-1
rials center.
Ne Courier
Except for the newly cre
ated courier position for the
curriculum materials center,
the remained of the salaries
remained pretty much the
same. The courier salary had
been cut $400 by the commit
tee. He would be required to
perform other routine jobs in
the center, also.
The committee spent most
of last night's session discuss
ing the proposed new pro
gram for able and gifted stu
dents in Jackson county
schools. The total budget for
this program was finally
sliced to a third, at $3,000,
compared to the proposed to
tal of $9,350. The committee
indicated it wanted more in
formation on the program. No
other county in the state has
tried it. Administrative As
sistant Cox said.
Congo Army Told To
Keep UN Out of Ports
Lcopoldvillc, The Congo -(I'Pli-The
Congo government
ordered army commanders to
day to keep UN troops out of
the ports of Matatli and Ba
nana until some agreement is
reached with the United Na
tions. WEATHER
KOHKCAST: Itnin and witit) to-
M'ilh niiuw Wriinrviay, t'ailini
rlpiiiie WniiifMiav aftrnmtn.
Low tonlcht IS to 40. Iffjh Hil.
nrrJay 4S,
Temp.
HiKht-n Vftdav S
lowest thli Mmntm . 29;
I'rec. to (ft .m. today OS
Our Skies Tonight
StittMt trniay . p m.
SiinrUff tnmorrow fi:3fi i.m,
Mnmi tnnigtK .11:1? pm.
I.siM HiinnfT .. March 9
IMtOMINFNT STAR
Cup!!, hith oveihrm t
1, rnirt in In mtftftwt l
midnight, KiiM, in mc nth
i unnet, iii be in thf wuth
wMt :37 p m.
.eld Raps Unmarke
Duncan Expresses I
million dollars was "without
any basis or merit."
Since the subcommittee,
headed by Sen. Francis Zieg
ler (R-Corvallis), did not spell
out what cuts it wanted, the
Finance Department returned
the budget with across the
board slashes in general fund
programs.
Hatfield said he was "really
surprised" that Ziegler, who
chaired an interim committee
that proposed expanded agri
culture department programs,
had ordered the cut.
House Speaker Robert Dim
can, Ways and Means Co-
Chairman Daniel Thiel and
Clarence Barton, D-Coquille'),
spoke out against the gover
nors statements.
Duncan said Hatfield "ob
viously lias never served on
unemployment for the last
week in February,
The total is 14ss than 10 per
cent of the estimated county
work force of 25,000. Patton
said that there also were other
unemployed not in the total,
including those with claims
filed against other states, a
number who have drawn the
maximum compensation and
some not covered.
Combination Noted
The local manager explain
ed that the high figures for
last month "were due to a
combination of bad weather
and price troubles which have
plagued the lumber industry
for several months,"
Barring some, now unfore
seen circumstance, February
should mark the high point
for this winter, although un
employment may remain rela.
Uvely high for several
months, according to Patton.
When the present wet
weather ends, a considerable
upturn in construction and
some Increase in logging ac
tivity can be expected.
The local level of unemploy
ment i still following the
pattern noted for several past
months, Patton stated, but the
current total is higher than
either of the past two years,
It is lower than that of three
years ago, however.
Larger Work Force
"With more population and
a consequently larger work
force in the county, we must
expect a larger number of per
sons to be unemployed in the
winter months due to the
seasonal nature of much of
our industry," he declared.
Slack conditions in other
parts of the country have in
creased the number of letters
received by the local office
inquiring about job oppor
tunities. Many indicate pur
chase or intention to purchase
land for a permanent loca
tion. Patton said this type of
correspondence increases or
declines in step with eco
nomic conditions in the rest
of the country.
Medford ranks fourth In
population among cities of
Oregon and Jackson county
ranks sixth in population for
counties. Since the unemploy
ment figure usually ranks
from 10th to 14th,"tne situ
ation is somewhat better than
could be expected," according
to Patton.
Two Youlhs Hurl
In Morning Crash
Two Medford youths were
injured, one of them criti
cally in a two-car accident at
the intersection of 10th and
Holly sis., about 10:20 this
morning.
In critical condition at
Rogue Valley hospital is
Wayne Johnson, 2748 Lone
Pine rd., a high school stu
dent. Hospital attendants said
he is suffering from a head
injury.
The other Injured youth,
and the driver of the car in
which Johnson was riding, is
Clayton Douglas Batten, 17,
of 816 North Riverside ave.
Attendants said he Is in good
condition at Rogue Valley hos
pital, but will be kept there
overnight for observation.
The diiver of the other car
involved in the accident was
Carl Randal Becbe, age un
known, of 518 West Second st.
He apparently was not in
jured, police said.
Details of the accident were
not available at press lime,
and police had not yet issued
any citations.
the Ways and Means Commit
tee" and indicated displeasure
with Hatfield's statement that
Ways and Means had better
think twice about ordering
any more budget cuts. He said
Ziegler is "probably better
qualified from experience and
training and ability to com
ment on the budget of the
Agriculture Department than
the governor." Ziegler oper
ates a dairy.
Regional Edition
Medford
16 Pages
Kwiv-tr MS) in !vyvwiMvi' f
SSs!V m-i !.& baSS-V'' -TTl n i "I
LOVELESS VOYAGE This is the crew of the 37-foot
schooner Fairwcather prior to their departure on a 10-year
"no romance" voyage around the world. Bill Adams, right,
owner of the vessel, plans to sail the craft to Acapulco,
Tahiti, Australia, Hong Kong, India and the Mediterranean
before returning to home port at Sausallto, Calif., in 1971.
Kennedy Proposes
212,500 College
Scholarships
Washington - IMPS - Presi
dent Kennedy today sent Con-j
gress "urgent" legislation to
aid higher education in Amer
ica by providing 212,500 col
lege scholarships for able
youths and extending federal
loans for dormitory and
classroom construction. i
He told House and Senate:
leaders that passage of the;
five-year, $3 billion program;
is "vital" to prepare for the
vast Increase in college en
rollments expected during the
coming decade.
Stands Firm
Meanwhile, the President
stood firm on his insistence
that federal aid to parochial
and private elementary and
secondary schools would be
unconstitutional, even though
House Democratic Leader
John W. McCormack (Mass.)
has come out against him on
the issue.
The two bills sent to Con
gress round out legislation to
implement Kennedy's $5.8 bil
lion aid to education program.
He already had sent Congress
legislation to provide federal
grants to states for public
school construction or teach-j
ers' salaries, as each state'
deems best.
Talenl Project
Final Bid Opened
The final bid on the Talent!
project was opened this morn-:
ing in local offices of the:
bureau of reclamation, accord-:
Ing to James Callan, project!
engineer.
Pacific Concrete company,!
Portland, was low bidder at
$689,333 on the west lateral
rehabilitation and west lateral
extension, Callan said. The
bid will be sent to the bureau's
chief engineer in Denver for
approval and awarding of the :
contract.
The project extends 21
miles from north of Ash
land to Griffin creek.
Other bidders were Cherf
Brothers, Inc., and Sandkay,
inc., Ephrata, Wash., $883,183,
and River Bend Construction
company Portland, $728,917.
m
Barton said he was sorry
over Hatfield's "loose use of
the word 'irresponsible,' " He
said, "1 question whether the
governor ever spent any time
on a farm except when he
might have visited one in a
political campaign." Ziegler
summed up his feeling by say
ing: "Barton said it for me."
Hatfield said he disagreed:
with Rep. Edwin Durno (R-j
Ore ), over a remark by Dur
no that the proposed Oregon'
MEDFORD, OREGON, TUESDAY, MARCH 7, 196?
Charge for Camping
At Howard Prairie
Lake Is Approved
A charge for overnight
camping only would be made
on a trial basis at the Howard
Prairie lake recreation areai
during the 1061 summer sea-!
son. It was agreed at a meet-!
ting last week in Portland :
of national park service, bu-
reau of reclamation and Jack-;
son county representatives.
City-County Parks and Rec-:
reation Director Robert Ha
worth told the Jackson coun
ty parks and recreation com
mission last night that the
federal agencies specified a $1
per car per night charge for
camping.
Ko charge will be made for
use of the boat-launching
ramp, for picnicking, parking
ears or cars with bsat-tralles.
The concessional will col
lect ins camping fees and
turn the receipts over to the
county, which will place It
In the newly formed county
recreation fund
Haworth, County Judge
Earl Miller and James Callan,
local project engineer for the
bureau of reclamation, met
Rogers Expected in
Valley This Week
William J. Rogers, meteor
ologist, U.S. weather bureau,
will arrive this week end to
signal the start of the spring
fruit frost season, County Ag
fruit frost season. County
Horticultural Agent C. B.
Cordy said today.
Orchard thermometers will
be tested Tuesday or Wednes
day, All orchardists are asked
to bring them to the county
Extension office. Duo to the
advanced stage of the buds,
growers may keep ihem on
hand unill next Monday just
in care of cold weather, Cordy
said.
Some early DAtnjou pear
buds ar losing their bud
scales, but no commercial
damage would result if the
temperature dropped as low
as 23 degrees. Cordy said.
"This rapid advancement of
fruit buds is nearly 10 days
u
aget
easure
Dunes National Seashore lack-1 said, with benefits for soma
ed sufficient scenic values. j workers running out each
Tlie governor said he was j week,
"sorry the present adrainistra-j Hatfield declined to com
tion did not see fit" to include I ment on an assertion by Min
the Oregon Dunes in recent jority Leader F. F. Montgom
nationai seashore proposals, jery of Eugene that Duncan
Hatfield said if federal leg- j was neglecting his job in fa v
islation is passed to extend j or of preparing for a race for
unemployment benefits, he the governorship,
wouid like to see the extension The governor said, how
made available in Oregon, j ever, he felt it was time to sea
Jobless payments are now more major legislation on his
on a plateau in Oregon, he j desk.
55th
Tribune
According to Adams, the voyage ifill have piatonic over
tones lor the crew, "If there's any romance, the people
involved will be sent home," he .said. From left, front,
they are Vern Hansen, 2B; Rick Adams,. 18; Mrs. Suttla
Adams, Adams. Kearj from left, Pat Adams, 7j Lisa
Adams, 10, and John Adams, .16. (UP! Telephoto)
with representatives of the!
federal agencies to discuss the !
fee schedule.
The two agencies determine!
the general recreational pol
icy for the area with the coun
ty acting as administrative
agency.
Following this summer's ex
periment, agency representa
tives will meet again and
evaluate the summer's opera
tion, and any adjustments nec
essary would be considered
then, Haworth explained.
Seek Fish for Lke
The commission directed
Haworth to write the director
of the state game commission
requesting plantings of spiny
ray fish such as bass, blueglll
and catfish In the Emigrant
lake and rainbow trout U pos
sible. Cole Hivers, stale game de
partment biologist, told the
commission that there would
be no fishing for the 1961
season. Jf planted soon spiny
ray fish would be catcheable
size in 1963 and trout In the
spring of 1962.
Bficreatlon Com missioner
Mrs, Marcel LePlnlec, Apple-
gate, presented petitions from
WO members of the Riders of
Southern Oregon asking for
development of bridle trails
and ovcrnisht camping spots
for horsemen and their
mounts. She was appointed to
help the commission plan the
bridle trails and the overnight
camping spots.
Crash Kills Four
Near Cottage Grave
Cottage Grove-fl-Four youth were killed In a one-car
accident 11 miles south of her early today on Highway 33.
The victims were identified by state police as Robert
H. Peters, 21, driver of the tar; Mle Snell, 18; Gary Glass,
18, and Wesley Johnson, 21. AH were from Cottage Grove,
State police said Peters' 1857 model car was westbound
when he apparently lost control. It skidded en the shoulder
of the road and flipped over into Pass Creek,
The accident was discovered about 2 a m, by a passing
truck driver who noticed the back light of the car shining
from She bottom of ttw ereek. The vehicle was completely
submerged,
i A
m
0 U i
Year Price 10 Cents
No. 301
Senafe Approves
Hatfield s Plan
For Commerce
Salem-BOT -Gov. Mark Hat
field's government resrgani
ration plan passed its first
key test with honors today
when the Oregon Senate ap
proved a cabinet Oepartror. t
of Commerce by a vote of
22-8.
The bill, SB222, now goes
to the House, where tt is s!as- .
ed before final action to re
turn to Ways and Means to i
mittee for a tougher look .t
the fiscal implications of
vamping Oregon's oiei i
ment into a cabinet sysi- a
modeled along federal lines.
Increased Efficiency
Republican and Democratic
leaders joined in supporting
the bill as a move that wou i.
bring "increased efficiency
and increased economy m tna
running of public affairs,"
The bill wouid group agen
cies dealing in commerce ln .o
one department, Th main
ones would be Planning and
Development, the insurance"
commissioner, toip orations
commissioner, superintende it
of banks, real estate csmmis
sisner, and numerous exam
ing boards.
Newbry Proposes
farm Pkket Bill
Salem - ffiPB -A bill to lim
it farm picketing during plant
ing and harvest seasons waa
introduced in the Senata
Monday by Sen. Lynn's! New
bry R-Taient).
ahead of normal hcdule,
Cordy said.
f