Shaky Condition of Estes Empire
Revealed Months Before Texas Arrest
Washington - luru - An aiin-1
culture ueparxmem umt-iai
testified today that months be
fore the Billie Sol Estos scan
dals exploded he received in
formation that the Texas farm
manipulator was liable for $7
million or $8 million in mort
gages not covered in his fi
nancial statements.
The official, Roland F. Bal
lou, made the statement in
replying to questions by Rep.
L. H. Fountain (D-N.C), chair
man of a House government
operations subcommittee
which opened an inquiry to
day into Estes' tangled af
fairs. Ballou said he got the
mortgage information from a
Dun and Bradstreet report in
September, 1961.
Ballou also said the Agri
culture Department began
taking action to safeguard the
government's interest in Es
tes' grain storage operations
"prior to his arrest." But un
der further questioning, Bal
lou said this action was start
ed the morning of March 29,
1862, only hours before Estes
was arrested.
Ballou said "stories and ru
mors" had been circulating
for months that Estes was
"not as solvent as he appear
ed to be." But he said Estes
was known as a "very fierce
competitor in the grain stor
age Held."
Fountain began cross ex
amination of Ballou after the
official said in a prepaied
statement that there was rea
son to believe that Estes was
Bank Debits Show
Increase in Area
Bank debits for the South
western Oregon Including
Curry, Jackson and Josephine
counties. Increased in April,
1962, compared to April, 1961,
according to the University
of Oregon's research bureau.
Debits for April, 1962, to
taled $99,354,308. For March,
1962, the total was $88,399,
137, and for April, 1961 the
total was $85,391,052.
Oregon with 239 banks re
porting, had an increase in
bank debits in April, 1962, of
6.7 per cent compared with
March, 1962 and an increase
of 9.7 per cent compared to
April, 1961.
Americans are eating about
18 pounds more of fruit each
year, fresh and canned, than
they did in 1915.
Rogue Valley Edition
Medford,
Page 2A
RIBUNE
MEDFORD, OREGON, MONDAY, MAY 28, 1962
guilty of a criminal violation
in his grain storage dealings
with the government.
Ballou said the matter had
been turned over to the FBI
and the Justice Department
for possible action. He said
the alleged violation involved
false financial statements,
which carries a penalty of up
to five years in prison upon
conviction.
Ballou said he based his
conclusion that no favoritism
was shown Estes by the de
partment on his intimate ac
quaintanceship of grain stor
age operations.
He said there was "abso
lutely nothing to allegations"
that the department was put
to additional expense by mov
ing grain from the Great
Plains of Kansas to Estes'
Texas elevators. Ballou said
it was common to move grain
from that area to Texas Gulf
ports.
In describing the govern
ment's crackdown on Estes,
Ballou said he was advised on
March 28 considerable pub
licity had been given in Texas
to expressions .of concern by
about 20 of Estes' creditors
who feared for their Invest
ments. The next day, he said, C.
H. Moseley, head of the Dal
las area Office of the Com
modity Operations told him
by telephone the FBI was
looking into some of Estes'
loans.
He said he immediately
called a meeting of depart
ment officials. It was "unani
mously agreed" to start tak
ing inventories of government
grain in Estei, elevators, he
said.
"Estes was arrested late
that afternoon," Ballou told
the subcommittee.
Meantime, Agriculture Sec
retary Orville L. Freeman re
fused to modify a department
order to withdraw about 42
million Dusnels of govern
ment-owned grain from eleva
tors once controlled by Estes
Hospital's Error
Results in Wrong
Surgery on Infants
Pontiac, Mich. - IUPD - Ev-
eryone agreed the infants
looked remarkably alike.
The mixup was a "100,000
to one chance," one parent
said, "but it happened."
What happened was an op
erating room mistake involv
ing two infant boys, 17 months
and 13 months.
One got a "tonsillectomy"
and the other a "hernia" op
eration. It should have been
the other way around.
Tracy Fernald, 17 months,
and Mark Trautman, 13
months, were in adjoining
beds at St, Joseph hospital.
They were wheeled Into the
operating room within min
utes of each other last week.
Somehow, the wrong charts
calling for operations were
given to each boy. Mark, who
needed a hernia operation,
had his tons? Is out. And Tracy
has an incision on his stomach
following his "tonsillectomy."
The mixup was discovered
when Tracy's parents, Walter
and Maude Fernald, saw a
cart being wheeled out of
the operating room with their
son's chart attached.
"Well, there's Tracy," Fer
nald said. Let s go.'
Mrs. Fernald objected.
That s not Tracy," she said.
"That one's got long hair.
Tracy's got a butch cut."
The nurse wheeling the
cart looked shocked. "You
must be kidding," she said
When Mrs. Fernald convinced
her, the nurse ran back to the
operating room.
Fernald said he wasn't an
gry, that it hadn't bothered
Tracy and described the
whole affair as a "100,000 to
1 chance.
Mrs. Trautman said "I still
have all the faith in the world
in both doctors and would
send all of my children to
them."
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Mftket Stages
Sharp Selloff;
Tape An Hour Late
New York - (UPB - The stock
market today staged its'sharp
est retreat since President
Dwight D. Eisenhower's 195S
heart attack.
The big slide was accom
panied by the heaviest trad
ing of the year and the great
est lateness on the high speed
tickers since they went into
use Sept. 2, 1930.
The tape ran 68 minutes
behind in recording floor
transactions at the close.
Brokers agreed with the
President's top economic ad
viser, Walter Heller, who said
mere were no economic
grounds for the "disturbing
correction" now taking place
in the market. Many said the
dip now constituted blind sell
ing which has reached unreal
istic proportions.
Tha slock list and Dow
Jonas averages were not
available at press time be
cause the lateness of the
tickers.
Local Firm Bids
Low on Project
Successful bidders have
been determined for the hem
lock looner control nrniect
slated to begin in mid-June
in Liaisop county, the State
Forestry department has an
nounced. Rosenbalm Aviation cor
poration, Medford, submitted
the low bid for the aerial
spraying with an offer of 59
cents an acre, Stauffer Chem
ical company, Portland, bid
20.31 cents per gallon for
supplying the spray, and
Portland Motor transport won
the transportation contract at
2.625 cents a gallon. The
transportation bid included
the hauling cost, plus the in
stallation of storage facili
ties and pumping equipment
at the Astoria - Clatsop coun
ty airport.
The project will cover 33,
508 acres of choice timber
lands infested with thl rfo.
structive moth which is cap-
aoie oi Killing extensive areas
of timber if left unchecked.
On the basis of the bids in.
tal cost will amount to $33,-
7H7.su. This expense will be
shared cooDerativplv hv h
State Forestry department,
u.a. rorest service and pri
vate landowners.
The state will bear 100 per
cent of the cost on state,
countv and municlnnllv-num-
ed lands, as will thn fnr
service on federal lands.
Costs on private lands will
be apportioned, with th
state to pay 37V4 per cent, the
forest service 25 and private
3 vs.
Control of tll hnmln.Ir
looper will be sought in the
aenai application of one and
one-half gallons per acre of
a mixture containing one-half
pound of DDT plus enough
diesel oil and solvet to make
the full measure.
GOP Seeks Opinions
Of Party Leaders
Verne Shancle MsHrnrJ
Jackson County Central com
mittee chairman, is among
several thousand Republican
grass - roots leaders whose
opinions on organization and
issues are being sought this
month by the' National committee.
Results will DroviHe imiHo.
lines for shaping campaign
strategy at the Republican
National committee meeting
in Seattle, Wash.. June 11
and 12.
The ouestionnaire seeks n
determine (l) prospects of
victory in November based
on comparison of organiza
tional strength with 1958,
and (2) national issues about
which the American peoDle
are most concerned.
About a dozen Oregon Re
publican leaders and candi.
dates will go to Seattle for
tne national meetine. said
State Chairman Phil Roth.
Toledo Boy Dies
Of Accidental Hanging
Toledo, Ore. - (UPD - Stephen
Daniel. 8, Toledo, accidentally
hanged himself at his home
Sunday while playing with a
rope, city police reported.
They said the boy apparent
ly climbed onto a stool with
a rope wrapped around him.
He fell, hanging himself.
His mother, Mrs. George
Daniel, attempted artificial
respiration to no avail. The
victim has four older brothers
and sisters.
Subscribers
To report Improper or non
delivery of the Mat Tribune in
Medford. pho.ie 772-ffMl: Ash
land ml! m low at. or
phone 4P2-.10P-' Montague and
Vreka phone Globe 9-5171. be
fore f 4 p m. daily and 10
ni SundAv
delivery arrives
you cnl Dle5e
notify office thin eliminating
(pecial mt'ssrrger service,
Jf regular
trtly after
Manner of Carpenter Rescue0
From Ocean Stirs Controversy
Cape Canaveral, Fla. (UPD
A Navy-Air Force controversy
that may provoke an official
inquiry was developing today
over the manner in which the
rescue of astronaut Scott Car
penter was carried out in the
Atlantic last Thursday.
At the center of the contro
versy was a claim that an Air
Force amphibious rescue
plane could have scooped Car
penter, a Navy lieutenant
commander, out of the ocean
an hour or an hour and a half
before he actually was picked
up by a Navy helicopter.
A part of this claim, heard
widely in this missile and
space headquarters but not
substantiated, was that the
Navy recovery force shoulder
ed the Air Force rescue team
aside.
There have been rumblings
ever since the astronaut
splashed down into the ocean
200 miles beyond his target
area at the end of his three
orbit mission around earth in
a Mercury spacecraft. When
rescued, he was floating in
the liferaft carried aboard his
craft for such an emergency.
A source who was in the
recovery area Thursday and
was able to monitor radio
communications during tha
rescue operation insister to a
newsman today that the Air
Force SA16 rescue plane de
termined about Vt hours be
fore the helicopter's arrival
that it could safely land and
pick up Carpenter.
A communication, he said,
went to the carrier Intrepid
that conditions were suitable ,
and shortly after that the
word flashed back from the
carrier that the Air Force
plane was not to land. A hel
icopter was said to be en
route.
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7