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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