op
tock "Market Oodicotes Recovery
Rogue Valley Edition Two Sections 57th Year Price 10 Cents
MedfordJTribune
16 Pages MEDFORD, OREGON, TUESDAY, MAY
The Beauties of Scenic
The first Protestant chruch.wcst of the Rocky mountains,
still serves its members.
Russia Reneges on Agreement
To Condemn War Propaganda
Geneva - (UPD - The Soviet
Union today reneged on an
East-West agreement to con
demn war propaganda and
plunged the 17-nation disarm
ament conference into a ma
jor crisis. .
Soviet Deputy Foreign Min
ister Valerian Zorin told the
conference his country does
not accept the declaration
condemning war propaganda
which he himself had helped
draft last week.
The conference had been
President is 45
Years Old Today
Washington - (UPD r Presi
dent Kennedy was 45 years
old today a youth among
.venerable world statesmen, a
scarred veteran of political
crises at home.
Beyond greetings from his
wife and children this morn
ing and felicitations from his
staff, a regular work day
came ahead of any real birth
day observance.
A quiet family dinner par
ty was set for tonight at Glen
Ora, the Kennedy country
place outside Middleburg, Va.,
where the president will
spend Memorial day before
returning to the White House
Thursday.
HEWSCBRIEFS
itims from m lF AtouNO thi oioii
FRANCE HIT BY NATIONWIDE STRIKE
Piris-fPI-A 12-hour nation-wide strike) of gat and elec-
,Ua,i halt,! commuter trains, slowed down Indus-
try. and created difficulties for millions of Frenchmen today.
SERGEANT YORK TAKES TURN FOR WORSE
Jamestown. TennlPI-Sgt. Alvin C. York, 74, America's
fabled World War I Hero, took a turn for the worse today
and was rushed by ambulance to a hospital in Nashville.
TERRORISTS CONTINUE TO ATTACK MOSLEMS
Aligers, Algeria-APIi-Secre! Army Organisation terrorist
continued their random attacks on Moslems today but the
tempo of killings dropped sharply following a sudden OAS
proposal tor an Algerian peace settlement wlthoifl France.
(Oregon State
supposed to approve the dec
laration today. -
U.S. Ambassador Arthur H.
Dean, white-faced with obvi
ous anger, told Zorin that
Russia had "blown up" discus
sion of the whole matter.
Zorin read to a stunned
plenary session of the confer
ence a Soviet government
statement calling for far
reaching changes in the dec
laration he and Dean drafted
last week.
He said "events in recent
days" made the amendments
necessary, and cited West
Germany, Laos and South
Viet Nam as examples of
worsening tensions in the
world.
He particularly singled out
an article written in a NATO
publication by West German
Defense Minister Franz Josef
Strauss which he claimed
called for the arming of West
German forces with nuclear
Theft Reported from
Central Point Office
Central Point - The theft
of approximately $25 in coins
from the office of Dr. Alvin
Roberts; 547 East Pine st.,
Central Point, was reported
Monday.
Central Point police said
someone broke in through a
rear window Sunday or early
Monday morning. Also taken
was a check protector.
29, 1962 No. 59
Oregon
Highway Commission Photo)
built in 1834 in Jacksonville,
weapons for "use against the
Soviet people.
Dean promptly shot back
that the article in question
not -only was misquoted by
Zorin but was two years old.
"The Soviet Union has
blown up these negotiations,
scuttled them for purposes
known only to themselves,"
Dean said. "It is useless to
continue further negotiations
on such a matter
Proposed Budget
For County Is
Signed by Group
Jackson county budget com
mittee members this morning
signed copies of the proposed
1962-63 budget estimate total
ing $4,203,135.08. This is ap
proximately $56,000 lower
than the current year budget.
A public hearing will be
held Tuesday, June 26, at
8 p.m.
The county will start with a
budget balance July 1 of
$378,547.88. Other receipts
will total $3,014,588.10, ac
cording to current estimates.
The cash working fund as
of July 1 will include $415,'
344.52 and available cash of
$703,892.40. No tax levy will
be necessary for the county
budget.
Budget estimates for 1062
63 in the various categories
are general county fund, $1,'
873.576.24; general road fund.
$1,661,819.50: Medford libra
ry fund. $73,943.04; Ashland
library fund, $7,499; Rogue
River library fund. $516;
emergency fund, $50,000;
Civil Defense fund. $10,432;
building improvement and
maintenance. $45,444; Juvenile
detention operation and main
tenance fund, $25,504,: capital
.mprovements and sinking
fnntU S150.000- county school
fund, S240.590;,school district
bond and interest fund $120,
295; county historical fund.
$33,519.
The proposed budget may
be revised following the pub
lic hearing.
Market Drop
Cause Cited
In 4 Factors
By SYLVIA PORTER
New York What was behind Monday's historic crash in
the stock market one of the worst breaks in the 20th
century, and certainly the most severe in modern times?
The answer falls into four broad classifications:
(1) Margin calls went out from brokers over the week
end to shareholders all over the country who had bought
stocks on borrowed capital demanding that the owners put
up additional cash to back up their borrowing. The slump of
the past few weeks had pushed their equity in their stocks
below the minimum permitted by Federal Reserve Board
regulations and Stock Exchange rules. As the break got
worse, the calls for additional cash multiplied and many
disillusioned, frightened and cash-shy holders were sold out.
In view of the extent of Monday's break, there's going to
be a lot more of the same today.
(2) Fear feeds on fear, and as the market has declined
week after week fear of a massive downturn has caused
investors who had no intentions of selling a couple of months
ago to get out while they still could preserve some of their
ncstegg. Always, big movements in the stock markets tend
to exaggeration, particularly on the downside. This happened
Monday and what happened Monday could make It happen
again.
(3) There has been liquidation of U.S. corporation stocks
by foreign holders, especially by the Swiss, according to
reliable sources. This has helped create air pockets in the
stock markets. There's no way
liquidation has been from foreigners, but it has been a factor.
(4) The big buyers with funds to invest the mutual
funds, institutional investors, wealthy individuals have
been largely sitting by, waiting to see how far this move
ment would go before they step back in on a worthwhile
scale. Over the Week end; I
would happen Monday when I
on the exchanges were unusually slim. The lightness of
underlying buying orders could have only meant a major
decline when selling orders started to pour in and ' they
poured. -
Each of these is a key reason, but each is basically
technical. Is the stock market also flashing the the funda
mental message that a major business downswing is on
the way?
The answer is no.
Admittedly, this has been a spectacular crack-up. But,
by this decline, the considered jugment of responsible au
thorities still is, the stock market is simply belatedly rec
ognizing what thoughtful observers have been emphasizing
for some time namely, that the era of great inflation is
not going to take off soon again. Those who bought stocks
at fabulously overpriced levels which no one could justify
by common sense reasoning or traditional yardsticks, thought
that inflation would nail them out and there always would
be one more sucker to buy. Inflation is not going to do this
for them in the foreseeable
The stock market also has
investments in view of the moderate character of the 1961-62
business advance. Earnings obivously are not going to be as
fantastically fat as the optimists anticipated a few months
back. '
The stock market has been
tractiveness of other mediums for savings, too. Just simple
savings accounts pay up to 4 or 4 Mi per cent now, and bonds
as well have been returning much more favorable returns
per year than most of the popular stocks.
That the stock market is a leading Indicator of busi
ness is indisputable. Often in the past it has turned up or
down long before a similar movement in the economy.
But it is only one of the leading indicators and, as Federal
Reserve Board Governor George W. Mitchell remarked in
a major policy speech in Indiana recently, the fact over
looked is "that the stock market has sometimes declined
significantly when the underlying business trend did not
change materially. Thus, the composite price averages
dropped 9 per cent in the summer of 1959, 11 per cent in
the fall of 1958 and IS per cent in the summer of 1950.
In each instance, the market had more than regained its
losses before recession-related deciinis commenced."
What, though, if the above is too pollyannish and the
stock market break is telegraphing a signal of bad trouble
ahead for the U.S. economy?
Then,, the administration and Congress can and I wager
they will move with powerful weapons, to counteract the
business decline before it gets rolling.
Across-the-board tax cuts for corporations and individuals
would be the greatest spur to business and the most potent
anti-recession weapon that exists. Serious talk of this is
mounting in Washington and the talk is serious, not just
election year politics.
What the stock market has done and Is doing is return
ing to common sense realities. Descent from glorious dreams
of get-rich-quick to hard facts is never fun. Many are being
badly hurt in the market today, hurt worse than they
dreamed possible.
But this is not "another 1929" and if it ever shows
signs of turning into one, we have the brains, the know-how
and the determination to prevent it.
WEATHER
FORECAST: Moitly cloudy to
night and Wednegdiy. Chance
of a few ihoweri over the
mounUini Wedneid&y after
noon. A little cooler Wednes
day. Low tonlfht near 4. High
tomorrow (5 to 70.
Temp.
Highest Yesterday 71
Lowest This Morning 48
Prec. to 5 p.m. Yesterday. T.
Prec. to 10 a.m. Today, none.
Our Skies Tonight
Sunset today 7:39 p.m.
Sunrise tomorrow .4 31 a.m.
Moonrlte tomorrow ... 3:10 a.m.
New Moon Saturday
Tht planet Mars, seen near
the Moon tonight. Is now
brighter than the North Star.
Next year on this date Mars
and the Moon will be In the
evening sky near Regulua.
Eichmann Verdict
Upheld by Court
Jerusalem, Israel -OIPp- The
Israeli supreme court today
upheld the conviction and
death sentence imposed upon
former Nazi SS officer Adolf
Eichmann for the slaughter
of six million Jews.
The verdict meant only
President Itzhak Ben-Zvi
could save him from the gal
of calculating how big the
had a forewarning of what
was told that bids for stocks
.
future.
been re-evaluating stocks as
reflecting the increasing at
Space Explosions
Planned by U.S.
Washington-(UPP-The United
States this week will start ex
ploding rocket-borne nuclear
weapons in space.
The explosions, their mam
moth fireballs, and the bril
liant auroral displays they
trigger will be the most spec
tacular fireworks ever staged
by man.
The weapons will be hurled
Into space by Thor missiles,
according to informed sources
over Johnston Island 800
miles south-southwest of
Honolulu. Three and perhaps
four space shots are planned.
One, a Junior-size H-bomb
to be exploded at an altitude
of about SOO miles, will be the
highest nuclear shot ever
I detonated.
I The tests, expected to con
tinue into July, will be of in
tense interest to scientists all
over the world. aThe scientist
'will be alerted to stud) ef
Ifccts of the blasts on the
earth's magnetic field and the
Van Allen ladiatlon zones
'enveloping the planet.
Tickers Running
75 Minutes Late
In Lively Trading
Blue Chips Show
Advance Attempts
New York - (UPll - Prices
slumped again in early Wall
Street trading today but
"flash" prices in early after
noon indicated a recovery
rally for the bellwether blue
chip stocks.
Leading the advance, after
a day of trading Monday in
which the market suffered its
sharpest drop since 1929,
were such leaders as Ameri
can Telephone, Standard Oil
of New Jersey, Bethlehem
Steel, Scars Roebuck and Du
Pont.
IBM Up Sharply
The closely watched Inter
national Business Machines
stock opened at 365, up $4 a
share, and at 9:55 a.m. (PST)
a "flash'' price - delivered as
the ticker reports fell far be
hind - showed it at 382, up
$21.
Brokerage houses swamped
with orders were resigned to
another long night of catch
ing up. Ticker tapes were as
much as 75 minutes late in
reporting big board trading
by 10:45 a.m.
Signs of the upward trend
in major issues began to de
velop. Prices Included Ameri
can Telephone & Telegraph
at 107, up $6.38; Standard of
New Jersey 51, up $5; General
Motors 49 's, up 50 cents; U.S.
Steel, 52, up $2; Chrysler
43, up 63 cents; Royal
Dutch 37, up $3.75. Others
which turned upward includ
ed Bethlehem Steel, Sears
Roebuck and Allied Chemi
cal. ASE Trading Lively
Trading on the American
Stock Exchange, second larg
est of the nation's exchanges,
was at 2,610,000 after only
two hours of trading, close to
its figure for the entire day
Monday.
Stock markets in Europe,
Canada, Western Europe and
Japan reflected the wave of
selling that resulted In a
'paper loss of $20.5 billion
Monday on the New York
stock market. London report-
ed its heaviest one-day drop
in years. International stocks
dropped as much as 60 points
in Amsterdam.
The big board tape was late
almost from the start. Volume
at midsession was almost
twice as heavy as at the same
time Monday.
(See story on page 2A)
Pageant
Finalist
Virginia Rausch
Another of the finalists for
the Miss Rogue Valley Pag
eant to be held June 2 at the
Oregon Shakespearean Festi
val Theater in Ashland Is
Virginia Rausch. She has
brown hair and brown eyes, is
5 feet 5 inches tall and weighs
122 pounds. A dramatic read
ing will be her contribution
to the talent segment of the
program.
Unander's Campaign
Said To Cost $29,321
Snlcm-H'PD-Il appeared to
day that the most costly cam
paign of the Oregon primary
this year was that of Sig
Unandcr of Portland, who
won the Republican U.S. Sen
ate nomination.
Unander's committee said it
spent $29,321. The successful
effort to renominate Sen.
V.yne Mora.: (D-Orc.) cost
nearly $19,000 -,ythe sc1
biggest campaign cxpciHi
ilure
of the primary.
f
TICKER STUDIED Dick Brown, left, United Press Inter
national financial wire editor, and Jesse Bogue, UPI ft
nancial editor, look at a stock market ticker in the wire
service's office in New York after the stock market plunged
in its worst break since the crash of 1929. Brown is holding
a mass of ticker tape, the result of the huge selling spree
that sent Dow Jones averages down 34.95 points during the
day. (UPI)
Labor Situation in
Area Orchards Said
To Be More Hopeful
Members of the Medford
fruit industry today, describ
ed the orchard labor situation
as "hopeful."
A meeting with U.S. Labor
Department officials has not
yet been arranged, since many
fruit shippers and growers
were attending a meeting in
Portland of the Orcgon-Wash-ington-California
Pear Bu
reau. It looks as if Sen. Wayne
Morse (D-Ore.) is making some
headway, since labor officials
have Indicated they are will
ing to discuss the problem,"
a spokesman for the fruit in
dustry said.
Also, since the Oregon sen
ator conferred with growers
here April 14, Labor Secre
tary Arthur Coldberg said
the Labor Department deci
sion to prohibit Mexican har
vest labor north of the Cali
fornia border will be review
ed. Earlier it had been re
ported that no Mexican Na
tionals would be allowed Into
Oregon.
Protest Labor Ruling
The local fruit industry
also has protested the depart
ment of labor ruling guaran
teeing $1 an hour minimum
wage for pickers.
. In a letter to Wayne Morse,
the labor secretary stated:
"The department has long
recognized that the employ
ment of workers handicapped
by age or physical or mental
condition presents a problem
when minimum wages or
wage guarantees are involv
ed. You may be assured that
special provisions will be ap
proved for such workers,
making It clear that they are
not guaranteed the same earn
ings as the able-bodied Mexi
can worker."
Not Impose Hardship
However, Goldberg also
said: "These figures (refer
ring to Labor Department rec
ords of average piece rate
wages paid pickers in this
county) Indicate that the $1
per hour guarantee would not
In Itself Impose a hardship."
Local growers emphasize
that the Mexican Nationals
are needed during the winter
pear harvest which comes
near tho end of the season.
This Is a time when students
are returning to high schools
and transient pickers' have
moved to the apple harvest in
Hood River, Ore., and We
natchce, Wash.
Local growers said they
would not object fixing the
piece rate to assure $1 an
hnjir average dally rate. But
they do object to a minimum
wage which could force them
to eliminate women and chil
dren and less, skilled pickers,
they said.
Memorial Day
Services Slated
in Area Tomorrow
Memorial Day services are
s c h e d ulcd throughout the
Rogue valley tomorrow, when
governmental offices and
most retail , stores will be
closed in observance of the
holiday.
. Veterans groups In Medford
will meet at 11 a.m. In the
Library park, Eighth and
Holly sts., to honor the war
dead of the area.,. . . .
The Rev. Robert , Cull of
Medford Assembly of God
church will give the invoca
tion, and the Muzzioli' accor
dion band will provide music.
Volleys will be fired by a
National Guard squad, and
taps will be sounded by Bliss
Heine. The Rev. John Ilg of
Sacred Heart Catholic church
will give the benediction.
Ceremonies In the Eagle
Point ' Veterans Administra
tion cemetery are scheduled
for 1:30 p.m.
Ashland Services
In Ashland, the Walter A.
Phillips post, Veterans of For
eign Wars, will be in charge
of the 10:30 a.m. service in
Mountain View cemetery.
Transportation for those de
siring it will be provided at
the Plaza and the public li
brary at 10:15 a.m.. Others
who need transportation
should call Ashland 482-0467.
The Rev. Edward G. Wulfe-
kuchlcr will give the Invoca
tion and benediction and Dr.
Francis Haines will give the
address. Wreaths will be
placed to honor war dead, and
John Rcid will play taps. A
Memorial covered dish dinner
will be served at 12:30 p.m.
in the Ashland American Le
gion hall on Winburn way.
In Jacksonville, Centennial
Post 100, American Legion,
and auxiliary will conduct
services at 10:30 a.m. In the
Jack sonville cemetery. At
1:30 p.m., the Woman's Relief
Corps, auxiliary to the Wil
liam H. Harrison post, Grand
Army of the Republic, will
conduct a program of dedica
tion md presentation of a
plaque and flag to the Jack
sonville cemetery, q
Hodges Calls for
Cut To Stimulate
Nation's Economy
Kennedy Plans No
Dramatic Gesture
Washington-IUPD-Commerce
Secretary Luther H. Hodges
called today for cuts in per
sonal and corporation income
taxes possibly this year to
reassure business and stimu
late the economy.'
Hodges said tax reduction
was overdue anyway and that
the plunging stock market
might make it desirable for
the administration to move
on the tax cut front earlier
than it had planned.
Treasury Secretary Doug
las Dillon said meantime that
Congress should take a major
step toward shoring up the
jittery market by speeding to
passage President Kennedy's
proposed tax credit for busi
ness. Prompt Endorsement
His appeal won prompt en
dorsement from Democratic
congressional leaders who
earlier had discussed the mar
ket with the chief executive
at the White House.
Dillon said approval of the
tax credit measure was "the
very best thing Congress
could do now." The adminis
tration measure, now blocked
in the Senate Finance Com
mittee, would allow business
to write off 8 per cent of the
cost of new equipment.
No Dramatics Planned
Speaker John McCormack
of Massachusetts and other
legislative leaders who met
with Kennedy said he in
dicated, however, that he
planned no dramatic gesture
to try to restore market con
fidence.
There were these other
Washington developments:
-Ladd Plumley, president
of the U.S.' Chamber of Com
merce, said . Kennedy's suc
cessful power, olav against the
1 steel price, hike and a weak
recovery' Jrom the recession
contributed' to the market
break. Plumley told a na
tional Press Club lunch Ken
nedy should take vigorous ac
tion to. restore business confi
dence. - , , .
Verbal Blows -Traded
-Senate Democrats and Re
publicans traded new verbal
blows over the economy. Sen
ate Democratic Whip Hubert
H. Humphrey (Minn.) denied
GOP charges that Kennedy
had failed to keep his cam
paign pledges. Sen. Barry
Goldwater (R-Ariz.) said there
had been too many words and
not enough action from the
White House.
Chairman William L. Cary
of the Securities & Exchange
commission told the House
Commerce Committee his
agency had launched a study
of "who and what groups"
figured in heavy stock sales
which led .to the market
break. He hoped for some
findings in 'about two weeks.
Break in Burglary
Cases Reported
. The first break in a series of
safe burlarics in the area that
for weeks had police officers
stumped, may have occurred
in Reno, Nev., last night when
a local suspect drew attention
to himself by cashing In a
large amount of small change
at a gambling casino there.
Two Medford police offi
cers, Lt. Lyle C. Perkins and
Lt. Jack McMillan, left for
Reno about 2 o'clock this
morning to question the sus
pect, Doyle Dwayne Trapp,
28, of 718 West 14th st. A
warrant charging Trapp with
burglary was issued by Dis
trict Attorney Alan B. Holmes
this morning. ..
Trapp was detained by
Reno police after he entered
a gambling casino and asked
an attendant, an off-duty
Reno police officer, to cash
in about $200 in dimes.
The Reno officer, who had
earlier seen an all-points bul
letin Issued by the Medford
police department following
the safe burglary at the Pay
less Drugstore in the Medford
Shopping Center Sunday
night in which about $1,000 in
change was stolen, notified
his headquarters and officers
took Trapp into custody for
questioning.
Medford Police Chief
Charles P. Champlin said that
Trapp will be questioned in
connection with at least six
safe burglaries that have oc
curred in Afdford in recent '
weeks, as well as a number of
other crimea in the area,
o
o