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About Medford mail tribune. (Medford, Or.) 1909-1989 | View Entire Issue (May 29, 1962)
IV r. 1 1 1 t L N HOUSE DESTROYED A natural gas explosion destroyed this home in northeast Portland. The Rev. Lyle O. Wilson, 30, pastor of the Sunrise Baptist church, was listed in satisfactory condition in a Portland hospital despite burns, cuts and bruises Inflicted when he was pinned by a falling wall while working in his yard at the time of the blast. Monday's Stock Market Decline Surprises Most Wall Streeters By JESSE BOOUE VPI Financial Editor New York - fUPD - The stock market has been dropping for weeks, but what happened Monday surprised most Wall Streeters, they said today. For a comparison of statis tics they reached as far back as 1929, year of a decline which still makes old-timers shudder. Some pointed out that most of the conditions which made Investors yell "fire" in 1929 were not pres ent and there were other sta tistics which seemed to Indi cate someone would call "halt" to the down hill rush. The question was when. The New York Stock Ex change, the nation's largest and the bellwether for most Investors, had no comment at its New York office. But down in San Antonio, Tex., G. Keith Funston, president of the exchange, said Monday's plunge was "nothing more than a manifestation of a free economy." A. W. Zelomek, author and economist, said the paper loss "might affect some areas." But he said the decline "has looked overdone. The advance was overdone, too." . Home To Roost A major Wall Street house said the selloff represented the "speculative excesses of the past three or four years" coming home to roost. Because of the emotional state of the market it could not be deter mined whether this would be the low. "But on the figures, the statistics, the earnings, the dividends and the general healthy state of the U.S. econ omy, stocks are rapidly be coming realistic." Briefly, what happened to the market Monday was this: The paper values of stocks -and this is regardless of the true valim of the industries which issued them, the pros pects for the economy, or their dividend rates - shrank about $28.5 billion on the "big board." This did not include losses on the Amurlcan Stock Exchange, the nation's second largest, or in the sprawling over-the-counter market where far more issues are available for trading than on the exchanges. Volume Heavy Volume of 9,330,000 shares was heaviest since the 9,572, 000 of July 21. 1933. The drop In the Dow Jones ave rage of 30 industrial stocks, down to 576.93, was 34.93 points, biggest single day's drop since the 38.33 of Oct. 28. 1929. Of 1.373 issues OREGON FOOD STORES ASHLAND MEDFORD Will Be op EM Memorial FC3 TP OHKUKI TV I a. traded, 1,212 lost and 75 gained. At the close of trading, the ticker tape was 89 minutes be hind the actual transactions. This Is the standard by which the exchange measures the lateness of its reporting while trading is in progress. But the Foreign Briefs PANAMA GOVERNOR ASKED TO DELAY VISIT Panama City-IUPD-Tha U.S. government was reported try ing today, for undisclosed reasons, to persuade President Roberto F. Chlarl to postpone the visii to Washington he has planned for mid-June. Informed sources said U.S. Presidential Aide Carl Kayser discussed a possible postponement at a meeting with Chiarl Monday. Neither government would confirm the report. CHINESE ARRESTED FOR MANILA FIRE ManlU-IUPII-Five Chinese have been arrested in connection with the $4 million fire that swept the central district of Angeles near Clark Air Force a Philippine news service report. Police arrested the five because they were seen leaving a grocery store where the fire Authorities said there were 50 WEST GERMANS CRACK SPY Bonn-luPII-West German counter-espionage agents cracked five Communist East German months, the interior ministry RUSSIANS TO FREE GERMAN COUPLE Moscow-UIPll-The Soviet government Informed the West German embassy Monday it has decided to free a German couple, Adolph and Hermina Weber, who were arrested and imprisoned on espionage charges last fall. Embassy sources said it was unclear "when, where and how" the couple would be released. ADENAUER CONGRATULATES KENNEDY Bonn-lllPluWest German Chancellor Konrad Adenauer Monday cabled his "heartfelt congratulations" to President Kennedy on his 45th birthday. "May it be permitted you to continue In good health to work for peace in the world and for freedom's victory," the message said in part. Potent Injection Turns Stocks Higher New York - WPP - Three top Washington officials con jured up a potent injection for remedying stock market hypochondria today and, with the help of a conducive "tech nical" situation within the market - It worked, tempo rarily, at least. After moving off sharply again early in the day, the market began a wild and wooly rally paced by blue chip issues which wiped out early losses and cut deeply Day XJJ' 7 n ?& " I The explosion occurred a few hours after workers struck a gas main near the Wilson home. The house itself did not have gas connections but Investigators said the gas seeped through the ground to the house. Wilson's wife and three children were not at home at the time of the explosion, (UPI) cleanup, the more detailed re porting of all transactions and price changes, ran until 5:51 p.m. on round lots, and eight minutes later on other figures. The big question was: Who was doing the selling, and why? base last Friday, according to started, the news agency said. cans of gasoline In the grocery. RING spy rings during the past two announced Monday. into Monday s near record- breaking losses. Trading resembled the worst days of the 1929 crash in volume, but this time the trend was up, not down. With high speed tickers nearly 2 hours and 20 minutes late at the close, volume seemed des tined to surpass by far Mon day's 29-year record turnover. Many on Wall Street had figured before the session be gan that stocks had been oversold on a wave of emo tionalism and were ripe for a rally on purely technical grounds. The recovery was triggered mid season when traders heard that Commerce Secre tary Hodges had called for a corporate and personal tax cut, possibly this year. The market tickers were so far behind in reporting trans- actions that the slock lilt and Dow Jones averages were not available at press time. CUTTER REPELLENT New cream formula is concentrated to that a little bit goes a long, long Hay. Non-greasy, non-sticky. Pleasant-smelling, easy to use. Comes In a toclset size, unbreakable flask. 5 4 o I One factor which seemed more apparent in the market Monday than In previous days of large sales and declines this year was the sale on mar gin calls. Posts 70 Per Cent Under the present margin requirements, an investor must post at least 70 per cent of the price of the stock $70 on a $100 stock. If the stock begins to drop, the broker may call upon the customer to post more margin. If the Customer holds sev eral stocks, he may elect to sell some to cover margin on inose ne wants to hold: or he may elect merely to sell. Effect of the margin re quirements seemed particular ly notable in the case of American Telephone & Tele graph, which sold off 11 points on 282,000 shares. There are special subscrip tion accounts In this stock. Last April AT&T, with more shareholders than any other U.S. corporation, issued 11 million shares of stock, with rights to those who then held the stock. Instead of selling the rights for cash, many shareholders decided to exer cise them; and, In conform ance with the minimum regu lations of the New York Stock Exchange, some brokerage houses permitted 25 per cent margin; others, 30 per cent. Margin calls on these began some time ago, and the fig ures make It appear that they increased sharply Monday, particularly in cases of small accounts where credit ratings might not be the highest. Boy Scouts To Assist at Fair Ten Boy scouts from the Crater Lake council have been selected by the National council. Boy Scouts of Ameri ca, to take part with the Boy Scout World's Fair service corps. The corps will be made up of one troop of 40 Scouts for each week for 11 weeks from June through August. The local scouts are Mich- en 1 Ford, Larry Wright and Philip Hollen, Troop 1; Carl George and Ted Mauek, Troop 2; Bruce Cunningham and Paul Bralncrd, Troop 3; David Doty and James Se- vard, Troop 14; and Mike Bur roll, Troop 15. Local leaders for the patrol are H. A Mauek, commit teeman of Troop 14. The patrol from here will be on duty at the Fair from Aug. 23 through 30 Regular duty assignments will include information aids, guides, messengers, color guards, aids to the handicap ped and other duties that Scouts may perform. Each patrol will be assigned four hours of duty each day. The Scouts will be housed and fed at Ft. Lawton and transportation to the fair will be provided. INSECT J ' -t- issci tiPiium Complaints on Received Early Washington - IUPD - An Agri cultural department official told congressional investiga tors today he started receiving complaints about Billie Sol Estes' operations almost as soon as the Texas farm tycoon entered the grain storage busi ness. C. H. Moseley, head of the Dallas office of the Agricul ture Commodity and Stabiliza tion Service, said Estes was "the subject of endless con versation on the part of his competitors. They viewed him with alarm. The complaints started very early - probably in 1959." Moseley, who is responsible for moving grain in and out of Texas elevators, testified dur ing the second day of public hearings on Estes' tangled af fairs by a House government operations subcommittee. Another Agriculture depart ment official testified that a Texas accountant admitted signing a statement on Estes' financial worth without check ing it adequately. This testimony was given by S. R. Smith, administrator of the Agriculture Market 1 n g Service. He said Winn P Jackson, a certified public ac countant, also admitted de stroying the papers he used to make the report. Moseley said some Texas ware housemen gave kick backs to Induce farmers to store their grain with them. Rep. Ross Bass (D-Tenn.) said he thought some federal Rogue Valley Edition Page 2A MEDFOEDaWTRIBUNE MEDFORD. OREGONgUESDAY, MAY- 29, 1962 VACUUM CLEANERS New, Uied, Rebuilt Many Makes & Modeli Liberal Trade-in Allowances Thirty Day Exchange Privilege Repalri Parti Bagi for All Kindi Fleer Polishers A Scrubbers STARK'S 622 N. Riverside SP 2-4998 Prepared by laws may have been broken. He said he would ask the at torney general to look into the matter. "This Is the sort of thing which permits a con man like Billie Sol Estes to operate," Bass said. Moseley said congressmen frequently wrote to him in behalf of elevator operator constituents seeking a greater share of the government grain business. But he said he did not receive any such letters in behalf of Estes. Moseley said he had only two personal contacts with Estes. He said the first was Sept. 6, 1961, in Dallas when Estes introduced himself at a meet Bakersfield Officers Arrive in Medford Two officers from the Bak ersfield, Calif., area, one from the sheriffs office and one from the city police depart ment, arrived in Medford to day to investigate the fatal stabbing of William Steven Taylor, of Bakersfield. Taylor's body was found in a Southern Pacific railroad boxcar which arrived In Ash land from Baker-field Friday. He had been stabbed twice, according to an autopsy per formed here. the Adfrtising Ffdf ration ol Amenta 15 Estes' Operations Said in Storage Business ing of peanut growers and Agriculture department of ficials. The other, he said, was in January this year when Estes made a telephone re quest for a change In classifi cation of his terminal elevator facilities at Plainview, Tex. The department was mov ing grain out of terminal fa cilities and Estes wanted the classification changed to a "country elevator" type. Moseley said he denied the request, which would have al a mid I I Phone You are cordially invited to visit the Chapel in the Trees Mortuary on Decoration Day, May 30, while you are decorating af Siskiyou Memorial Park. We will be on hand to assist you and to answer any of your Inquiries, SISKIYOU OssE ONE CALL Mortuary Cemetery Mausoleum Crematory 5 MINUTES FROM DOWNTOWN MEDFORD ,s&h Advertising helped it happen By stimulating mass demand, advertising helped create a mass market for electric light bulbs. As demand grew, more and more were made. The more of them made, the less each one cost Result: new and better electric light bulbs mass produced for more people at lower prices by America's remarkable and competitive economic system. Is this worthwhile? Then, so is advertising worthwhile. am) the AdifrtUing Assertion of th West PuWished throuth Iht courtesy of this publication. lowed Estes to retain govern ment surplus grain and col lect 13 cents a bushel for its storage, Rep. Odin L a n g e n (R Minn.), a subcommittee mem ber, said testimony Monday from agriculture official Ro land Ballou "aroused my sus picions more than ever that favoritism was shown to Estes." He said Ballou's re plies to questions on whether Estes got preferential treat ment and whether the govern 772-5488 r 772-2344 TO Siskiyou Memorial Park 605 ment lost money storing grain in Estes' elevators were "quite Inadequate." Ballou denied both charges." When Ballou testified that most of the storage contracts were granted by the Eisen hower administration, Langen said some of the official's sta tistics were wrong and won dered why he was trying to put the blame on "one ad ministration or another." Bal lou replied that he was trying to correct press reports. I .' v. t ISm JOE HOSICK Funeral Director Directors Columbarium Phone L. G. MILES Cemetery Mgr. Highland
