hornton Points To 'Growing Scandals' in Hatfield Administration
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FIRST ON TELEVISION American television viewers
taw these images on their screens Wednesday night - the
first live TV broadcasts from Europe. From England,
technicians at control board viewing monitors at the Gen
eral Post Office TV sending station at Goonhilly Downs,
upper left, and Charles Boolhe, second from right, Gen
eral Post Office deputy chief engineer, addressing the
United States, lower left. From France, singers Michelle
Arnaud, upper right, and Yves Montand, lower right. HJPI)
Cennedy Announces Long-Awaited
Fax Break for Nation's Businessmen
Washington - IIIPIl - The na
tion's businessmen today have
a new set of tax rules design
ed to save them $1.5 billion
a year and put more muscle
into the economy.
President Kennedy an
nounced the long-awaited tax
break Wednesday night re
vised ta depreciation sched
ules that allow businessmen
and farmers to write off their
deteriorating equipment fast
er. A congressional Democrat
said "it should convince some
businessmen that Kennedy
doesn't hate businessmen aft
er all."
The administration r- prod
ded Increasingly to propose a
general income tax cut Ibis
year instead of waiting until
next year - will be watching
the economy . closely to see
the effect of the new relief.
But informed sources pre
dicted that despite the big
tax break, chances are bet
ter than 50-50 that Kennedy
will reverse his position next
month and decide to go for a
big - but temporary - tax cut
for everyone. It would be tem
porary so that he would have j
a "swectner" in the form of
permanent tax relief tn in
clude in general tax reform I
legislation next year. '
Sources felt that the deci
sion on a reduction in in
come taxes will depend larg
ely on the fate ot Kennedy's
tax credit proposal, now in a
Senate committee, which
would mean Hnothcr $1.2 bil
lion break for business.
If this is passed, sources
said, "it might he that these
two lax cuts will he enough
In avoid doing anything more
this year."
Kennedy, in announcing
Ihe new depreciation sched-
Regional Edition
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MEDFORDJSSrRIBUNE
MEDFORD. OREGON, THURSDAY. JULY 12. 19B2
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tf..Ll3.JL.' i.i iilta
ules, said they would "aulo
inatically permit more rapid
and more realistic depreci
ation tiian is presently lakn
on 70 tn 80 per cent of the
machinery and equipment
now used by American busi
nessmen and farmers."
"By encouraging American
I business to replace ils ma-
! chinery more rapidly," Ken
nedy said, "we hope to make
American products more cost-
competitive, to slop up our
rate of recovery and growth
and to provide expanded job
opportunities for all Amer
ican workers."
In combination with his
pending tax credit legisla
tion, Kennedy said, it would
"put American producers on
a comparable tax footing with
their foreign competitors, to
increase our snare of both
foreign and domestic markels,
and thus protect our balance
of inlernalional payments and
gold reserves."
Businessmen had been up
crating since 1P42 under Bul
letin F, a depreciation guide
line that they claimed was
highly unrealistic, Treasury
officials agreed.
National Guard,
Stale Hospital
Shortages Cited
Salem -lUPIi-Atty. Gen. Rob
ert Y. Thornton today focused
attention on what he called
"growing scandals" in the Re
publican Hatfield administra
tion. The Democratic nominee for
governor listed the recent em
bezzlement of $25,000 in pa
tients' funds at the State Hos
pital here, and the shortage of
National Guard property at
Camp Withycombe, "an
nounced as $6,000 worth but
obviously much more if in fact
heavy equipment was taken.
Daily Exchange
Thornton's attack was an
other in what has become al
most a daily verbal exchange
of blows between Thornton
and Gov. Mark Hatfield.
Thornton also criticized the
all-Republican Board of Con
trol for what he termed the
board's "sudden interest" in
eliminating surety company
bonds on state employees han
dling public money.
This interest, Thornton said,
in "cutting private bonding
companies out of the state
bonding field should cause the
public to wonder what's up."
"Could it be that the gover
nor is afraid of the growing
scandals in his administra
tion?" Thornton said.
Sounds Like Competition
Elimination of private sure
ly bonds, and substituting a
system whereby the state
would insure itself, Thornton
said, sounds like government
competing wilh private busi
ness "which was so recently
and roundly condemned at the
Republican state convention
in Bend."
Hatfield issued a one para
graph statement saying "this
is another example of the at
torney general's failure to do
his homework in his desperate
search for headlines. Earlier
this week he cast reflections
on the integrity of the Su
preme court and now he ques
tions (he fidelity ot the mass
of state employees."
Legislature May Be Asked To Make Up
Part of Hospital Embezzlement Loss
Salem-iUPIi-The Slate Board
of Control apparently will
have to ask the 1963 legisla
ture to make up part of $25,
840, loss at the stale hospital
caused by embezzlement by
a former clerk, it was indi
cated today.
The embezzler, Cecil Stin
nettc, was convicted and is
serving three years in the Ore
gon Correctional Institution.
Stinnette took the funds
from the trust accounts of
dozens of patients at the hos
pital. These are private funds
of the patients held for them
while they are patients.
Stinnette was bonded, but
only for $10,000. That much
has been recovered, as well
as Stinnette's last paycheck,
$.162, which was applied to
the loss.
Where the rest of the mon
ey will come from hasn't been
decided yet, but the indication
is the legislature will be asked
to appropriate at least part
of it.
Douglas DeCew, director of
state audits, said that $9,000
Guidebook Published
About Mentally III
New York-'UPU-Every year
some member of one in about
four families behaves so ab
normally he lands in a hospi
tal where he can get psychia
tric care.
Edith M. Stern makes that
point in a "Mental Illness
A Guide for the Family," The
booklet contains helpful in
formation for relatives of the
mentally ill.
of the $15,000 shortage was
owed to the hospital by the
patients for their care during
the period in 1960-61 when
Stinnetle did the embezzling.
This would leave about
$6,000 that apparently will
have to come from the state's
general fund unless another
$10,000 bond - that on Hos
pital Superintendent Dean
Brooks - is activated. Brooks'
bond has not been activated.
If it is. the state would recov
er but Brooks would be liablt
for the $10,000 with the bond
ing company.
If Brooks' tond were acti
vated, the total with Stin
nette's bond would be $20,000
- still $5,000 short of the
amount embezzled - unless the
$9,000 owed by the patients
could be applied.
Dalles Students Get
Jackson Scholarships
Portland HJPh Jackson
Foundation scholarships of
$500 have been awarded to
two graduates of The Dalles
High School Nancy Ann Ny
berg and Shirley Miller. Both
are freshmen at Portland
State college.
M-o-v-i-n-g?.
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Bottom Roller Shade
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New York-IUPD-For summer
cooling, use new "bottom-up"
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est university. I
Stocks Increase on
Now Yoi'k-il'N'-Stocks cele
brated Hie depreciation revi
sions put into effect by the
Treasury with a moderate
Kain on very heavy early trad
ing today.
The hitfh speed ticker was
forced to send "flash" prices
beginning at 0M) a m and
near 11 a.m. the market was
at least 10 minutes late.
Among the blue chips Gen
eral Klectric spurted around
llv on sharply higher earn
ings. IBM. which reported
record half year profits, show
ed a gain of tv'8 on a block
of 10.000 shares, after trading
v a s suspended briefly to
match orders.
DOW JONES AVERAGES
New York Dow Jones
ftnnl stock averages: 30 in
duKlrinls 589.06, up 3.05: 20
railroads 124.34, up 1.10; 15
utilities 114.56. up 0.96: 65
stocks 205.33. up 1.37. Sales
Wednesday were about 4.25
million shares, compared
with 7.12 million shares
Tuesday.
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Penn RI1
Perms Cement .
Phillips
Procter & Gamble
Shell Oil
Socony Mnhll Oi .
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Standard Indiana
Standard N J
Stnkely Van l amp
Sun Minen
Texas Co
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Thiokol
Trans America
Trans World Air
Trf-Oontmental
I'nion Carhide
I'nion Pacini
1'mtrrt Aircraft .
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1'. S Rubber .
I' S Steel
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