Medford mail tribune., July 25, 1962, Image 1

ysterious Mr. X in lew York Stock Theft Case Surrenders
Story
Page
2A
The Beauties of Scenic Oregon
(Oregon State Highway Commisiion Poto)
V. -of
$2 Billion Reduction Proposed in
President Kennedy's Foreign lid Funds
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An autumn scene along
in the background.
Cost of Living
Reaches Another
Record Figure
Washington - IUPI) - The cost
of living rose to another rec
ord high last month, knocking
another penny off the buying
power of a $10 bill, the gov
ernment reported today.
The Labor Department said
the increase was due largely
to a sharp rise in prices for
fresh fruit, such as apples and
watermelons. Another con
tributing factor was an in
crease in medical care costs.
The department said the
June cost of living index stood
at 105.3 per cent of 1957-59
prices. This meant it cost
$10.53 last month to buy
goods and services that could
have been obtained for S10
during the base period.
Record 103.5 Per Cent
The food index itself climb
ed to a record high of 103.5
per cent, primarily because of
a substantial rise in the cost
of eating out. Prices for res
taurant meals were 2.8 per
cent higher than a year ago.
Officials said the increase
in the consumer price index
was strictly seasonal. It has
shown a gain every June for
the past 10 years. A spokes
man predicted there would be
little or no change in July's
figures.
The department said a 9
per cent increase in fruit
prices, principally apples and
watermelons, were the big
gest factors in the increase.
Medical care costs climbed
by three-tenths of 1 per cent
in June because of higher
charges for hospitalization in
surance, hospital room rates
and professional fees.
Union Official Gets
Term for Embezzlement
Portland-JITD-Francis Lena
burg of Shcdd was sentenced
Wednesday to two years in
prison for embezzlement of
union funds.
Lenaburg was an official
of Willamina Local 22 of the
International Woodworkers
of America. He pleaded guil
ty to embezzling $2,163.
NEWSfBRIEFS
ITIMS PROM
RUSK LEAVES ISSUE DEADLOCKED
Genv-iri-S. sratary of State Dtn FiKk flew back lo
Washington today after five days of East-Wett meeting
which failed to resolve the Berlin deadlock.
NATO COUNCIL SELECTS LEMNITZER
Perii-in-The North Atlantic iTealy Organisation (NATO)
permanent council today unanimously named Gen. Lyman L.
Lamnitier of the United Slates as new allien supreme com
mander in Europe to succeed Gen. Lauris Norslad.
UNION VOTES TO STRIKE PAN-AM
New York-lPI-The Transport Workers Union has voted
"overwhelmingly" to strikM sint Pan-American World
Airways to back d annua far wneje increases, the union an
nounced today.
hhw:',
the McKcnzie river highway
0 and C Group May
1 Discuss Road to
Mt. Ashland Area
A meeting to discuss the
proposed road to the Mt. Ash
land ski resort area may be
called by Darrell Jones,
Clackamas county commis
sioner and president of the
Oregon Association O and C
Counties. County Judge Earl
Miller said today.
Possibly the reason jio bids
were received on the proposed
Ml. Ashland ski area develop
ment was that no construction
job had been advertised for
the road into the area.
Regional Forester J. Her
bert Stone wrote Jones giving
the progress on the road plan
ning and designing and en
closed a copy of a letter from
Hoffa Condemned
By Subcommittee
Washington- (HPIi-The Senate
I rackets subcommittee today
harshly condemned Teamsters
President James R. Hoffa as
a man who doesn't care
whether union racketeers rob
or steal members' money.
The subcommittee conclud
ed in a formal report to the i
Senate that Hoffa defiantly!
I refused to cleanse teamsters j
: lucals of criminal elements !
. and brazenly ignored the wcl-
i fare of his 1.600.000 member". !
Investigators found further j
that Hoffa used every avail-!
able means to thwart clean-up :
campaigns by court-appointed j
monitors. Hoffa even reward j
ed tainted local officers by
promoting them to jobs high
in the international union, j
they said. j
Hearings on which the sub- j
committee's report and find- j
ings were based were held in I
January. 1961. Chairman John .
L. McClelland explained that !
issuance of the report was de- ':
laved until after the trial for j
bribery of Antonio (Tony i
Ducks) Corallo. former New
York teamsters official and ;
"one of the most powerful '
underworld figures in the j
New York area." Corallo was 1
convicted last month.
AROUND THI 01OII
with two of the Three Sisters
the regional office of the for
est service to Sen. Wayne
Morse (D-Ore.).
The letter to Morse gave the
reasons for selecting the Siski
you summit route- over the
suggested Bull Gap route.
The O and C counties ear
lier allocated $200,000 for fis
cal year 1962-63 for clearing
and grading half of the road.
The money would come from
O and C receipts, or the coun
ties' share of receipts from
timber sold from O and C
lands.
In his letter to Jones, Stone
noted that the road construc
tion contract probably could
not be awarded before the
fourth quarter of the current
fiscal year because of earlier
commitments of O and C
funds such as work on Agness,
Spencer creek and Clackamas
River rds. .
The O and C counties' rep
resentative may discuss the
possibility of the road con
tract being put up for bid.
earlier than the fourth quar
ter, and whether the contract
on construction of the Mt.
Ashland ski area should be
awarded before the road con
struction is started.
A tentative program for the
remainder of the road clear
ing and grading has been set
for fiscal year 1964, Stone
stated. No program plans
have been made yet for the
paving work, estimated at
S291.20I!, Stone added.
Thompson Will Be
Tried in California
Donald Martin Thompson.
Klamath Falls, is scheduled
to be tried in Contra Costa
county, California. Sept. 12,
(or armed robbery.
Thompson was found inno
cent in Jackson county ear
lier this year of the 195!) La
bor Day week end holdup of
the Safeway store in the
Medford Shopping Center.
Ho had been sentenced to life
imprisonment following a
trial in 1951) on the Medford
incident, but successfully ap
pealed his case to the state
supreme court.
Two police officer who
testified at the two Jackson
county trials have been noti
fied they will be expected to
testify at the California trial
are Medford Police Lt. Lylc
Perkins and Capt. Lylc Har
rcll, Salem, head of the crim
inal division of the Oregon
stale police.
Thompson was reported to
be out on bail and was be
lieved to be working in
Eugene.
GOOD WEATHER WAITED
Honolulu -il'PI - The United
States hoped today that the
weatherman would cooperate
long enough so that the seem
ingly Jinxcd second high alli
Uide nuclear test over John
ston I?land could he held
FOREST FIRE
DANGER TOMORROW
KEEP OREGON GREEN
Kennedy May Send
Group To Canada
To Discuss Quota
By A. ROBERT SMITH
Mail Tribune Washington
Correspondent
Washington (Special) The
Kennedy administration is ex
pected to send a trade dele
gation to Canada to discuss
the possibility of a voluntary
quota that would stop the in
crease of lumber imports
which have hurt the north
west lumber industry, in
formed sources said Wednes
day. The delegation is likely
to be headed by Assistant Sec
retary of Interior John Car-
Some JO Fires
On State Lands
Under Control
By United Press International
Some 70 fires caused by
lightning late Tuesday were
under control in Oregon this
morning.
Forty of the fires, many of1
them small, started on U.S.
Forest Service lands.
Eight fires were reported
in the Vale District and five
in the Prinevillc area on Bu
reau of Land Management
land. In the Castle Rock area
of Malheur county, flames
blackened about 150 acres of
timber in the rocky, hilly
area.
A 2.400 acre range and sage
fire in the Prineville area
was controlled Tuesday.
Fire Near Drain
Sixteen fires, mostly lightning-caused,
were reported on
state land, including a dif
ficult 80 acre blaze eight
miles southeast of Drain in
Douglas county.
All the other fires on state
land were small except a 10
acrc blaze near La Grande
that burned grass and timber.
More ihundershowers and
lightning were forecast for the
eastern part of the state to
day and Thursday. Tempera
tures were expected to reach
100 in the southern interior
and nearly as high In parts
of Eastern 'Oregon.
Medford Tuesday had the
highest temperature 101.
Railroads Agree
To Consider Protest
Portland - ITU - Officials
of western railroads agreed
Tuesday to consider a protest
by Northwest lumbermen that
proposed changes in railroad
tariff schedules will increase
the cost of shipping lumber to
the east.
The Western Lumber Mar
keting association announced
here that it has been told that
its objections will be present
ed to the executive committee
of the Western Traffic As
sociation Thursday. The com
mittee is composed of vice
presidents of the railroads In
volved. Lumbermen said the pro
posed changes would restrict
the ability of western lumber
and plywood shippers to make
changes in slopoff points for
shipments moving to the Mid
west, the East and lo Canada.
Hatfield Closes
Three More Areas
Salem-'VPI'-Gnv. Mark Hal
field has issued three more
proclamations closing forest
areas in Oregon to entry ex
cept by permit.
The closures, effective Lt
midnmht Wednesday include:
The lower Cascade moun-
tains from east of Colton
south to the north Santiam
river in the Clatkamas-Marion
i district.
A small tract caM of Esta
' cada. also in the Clackamas
Marion district.
From the north Santiam
river to the south Santiam
river the Linn district.
Regional Edition
Medford
120 PAGES Two Sections
ver and made up of other
cabinet-level offiicals from
the department of state, com
merce and agriculture.
This plan is expected to be
approved and announced
shortly, possibly following a
meeting between President
Kennedy and northwest Dem
ocratic lawmakers scheduled
for Thursday.
Announcement Due
Sen. Warren G. Magnuson,
whose Senate Commerce com
mittee has held extensive
hearings on the grievances of
the industry, said today that
the President would make on
i important announcement on
the lumber situation Thurs
day. "This is expected to detail
a package of affirmative pro
posals," Magnuson said, de
clining to fill in the details
in advance of the meeting at
the White House.
Sen. Maurine Neuberger,
who had lunch al .the White
House Tuesday, made a sim
ilar prediction before taking
off for a visit to Puerto Rico
Wednesday.
"I talked with the President
and members of his staff and
I know they are aware of the
need for action, she said.
The trade talks are appar
ently the administration's al
ternative to the industry's
demand for a unilateral quota
to limit Canadian lumber im
ports to 10 per cent of Amer
ican consumption. The White
House opposes such drastic
action at this time.
Package Announcement
Other items reportedly part
of the package announcement
I by the President later this
wcck are:
1. Creation of a new As
sistant Secretary of Agricul
ture to ride herd on the for
est service.
2. Increase allowable cuts
of O&C and National Forest
lands.
3. Seek early action by Tar
iff Commission on petition
filed by the industry seeking
relief from foreign imports.
4. Ask Congress for more
funds for timber access roods.
This package is likely to be
the Kennedy administration's
answer to the demands from
Capitol Hill and from the Pa
cific Northwest for some help
against the intense competi
tion from British Columbia
mills which have vigorously
entered the American lumber
market from New York to
Los Angeles.
Court Removes
Toledo Councilman
Salem-iUPP-The Oregon Su
preme Court today removed
Matthew Gruber from the To
ledo city council, saying he
had not been elected properly.
Gruber was named by the
six member council to fill a
vacancy, but only three coun
cil members voted him in.
This wasn't a majority - as
the Toledo city charter re
quires - so Gruber's holding
office is illegal, the court said.
The decision was written
by Justice Pro Tern Hall S.
Lusk, and affirmed Lincoln
County Circuit Judge Earl P.
Conrad.
There were four council
men present when Gruber
was scaled earlier in the year.
The fourth member abstained,
and Gruber insisted this
I should be construed as a fa-
vorable vote along with the
other three, but the court said
this isn't possible.
WEATHER
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MEDFORD, OREGON, WEDNESDAY, JULY
mwiw i ".Miliar 'Mwwiww-uw'iiwwM'S'am'''"'1!' Mnf
r..; -J 1 . ill ;
:v 4 i l , ; y- w.
ARRIVES Miss Martha Louise Wyatt was
greeted witn flowers and music as she ar
rived ncrc Tuesday night as Miss Oregon for
1962. She was met by Dick Frey, president
of the Medford Junior Chamber ol Com
merce, and Jim Butler, who organized and
Court Affirms
Conviction of
0. H. Bengfson
Salem-(UPIi-Thc Oregon Su
preme Court today affirmed
the Josephine county embez
zlement conviction of O. H.
Bengtson, former Medford at
torney and state legislator.
Earlier this year the high
court affirmed a similar con
viction in Jackson county,
and Bengtson began a three
year sentence in the Oregon
Correctional Institution here.
Superintendent Paul J. Squier
said that Bengtson was shift
ed to the state penitentiary
Feb. 20 because of crowded
conditions al OCI.
The court, in a decision
written by all seven justices,
said the appeal in the Jose
phine county case presented
the same issues of law decided
in the Jackson county case.
The decision, affirming Jo
sephine Circuit Judge Orval
J. Millard, said the trial in
Grants Pass was conducted
with "meticulous care and
fairness" and there was no
doubt of Bengtson's guilt.
Bengtson was convicted of
taking $3,701 from the Med
ford Escrow Co., Inc., in 1959.
At that time, he was the firm's
secretary.
MILL DESTROYED
Pendleton - H'PD - The Blue
Mountain Fir Lumber Co. was
destroyed by fire this morning.
Alba Plans to Name
Mcdford's sister cily-Alba,
Italy-is planning lo name a
street in its new section "Med
ford Street," Mayor John W.
Snider learned this week
from Edwin C. Pancoast, Eu
ropean assistant director ot
the U.S. Information Agency.
Medford street and one to
be named "Tclstar Street"
will be named following
1 hursday's Telstar telephone
experiment between Mayor
Snider and Alba s Mayor Os
valdo Caqnasso.
According to the US1A, the
announcement that the little
j town of Alba had been select
led for the historic experiment
I was received by its Inhabit
j ants with an astonished stir
I prise that had turned Into
1 enllnisiasm.
j "The citizens of this (own
in northern Italy," the an-
nrmncrment continues, "inter
; nali'inally known for its wines
' and truffles, are well aware
i of the importance that the
Telstar experiment will have
not only for Alba, bul for the
world. They are proud that
the name of their town (Alba
muuttt dawu ku luluiii) u a
Tribune
directed the
Several Hundred
Greet Miss Oregon
On Her Return H ome
Several hundred persons
greeted Martha Louise Wyatt,
Miss Oregon for 1962, when
she arrived home last night.
On arrival she was serenad
ed by members of the Lynn
Offord combo, and a red car
pet was rolled out by the
Medford Junior Chamber of
Commerce.
She was presented bouquets
of flowers by County Judge
Earl Miller, representing the
Jackson county court; the
Jacksonville volunteer fire de
partment; and a key to the
city by Mayor E. O. Graham
of Jacksonville.
Quarter-Acre Fire
Results From Storm
One fire resulting from last
night's lightning storm in the
valley had been discovered by
this morning.
The fire, which burned
about a quarter acre in the El
liott Creek ridge area south of
the Star Ranger station, was
reported early today and was
under control by 9:30 o'clock
this morning.
Three sniokejumpcrs were
dispatched to the site by
liogue River National forest,
and 1.000 gallons of borate
were dropped. The fire is in
the Applegalc district.
definition of the moment that
Is now opening a new era
In world communications."
It was reported that Mayor
Cagnasso has decided that Ihe
telephone he will use to talk
with Mayor Snider via Telstar
will be put under a glass bell
lifter the historic conversation
and preserved as one of the
most Important articles in the
municipal collection.
The USIA reports that hun
dreds of American and Italian
flags have been sent to Alba
for display and that all citi
zens are thinking up propos
als and suggestions for the
celebration.
Since Alba is famous for its
cooking, the chefs there are
devising new delicacies to be
called "Telstar." "Medford,'
and "New Era."
USIA said residents of Alba
remember with pleasure the
American visitors from Med
ford who have visited Alba,
and are hoping that the Tel
star connection will increase
their numbers.
The Snider-Cagnosso con
versation will he between 3:10
and 3:25 p.m. Tliurtxiavjr bom
57th Year Price 10 Cents
25, 1962
No. 108
Jaycee sponsored Miss Rogue
Valley contest. From the Medford airport
she was taken to the Rogue Valley Country
club, where she was guest at a reception for
participants in the Miss Rogue Valley
pageant.
I Miss Wyatt, whose home Is
in Jacksonville, was driven
to the Rogue Valley Country
club in the 1031 model fire
engine which headed a cara
van of cars, there she was
honored al a reception, for
which John Snider of the
Pepsi-Cola Bottling company
was host. Also attending were
others who participated in the
Miss Rogue Valley pageant,
both contestants and officials.
Official Appearance
Monday evening in Port
land Miss Wyatt was a guest
at the greyhound races, her
first official appearance as
Miss Oregon. Before leaving
Portland Tuesday, she was
presented a flight bag by the
Portland manager of West
Coast Airlines.
When asked how it felt to
be Miss Oregon, Miss Wyatt
said "Just the same, only
more excited." She expressed
appreciation to Mrs. Reedy
(Jo Ann) Berg, Miss Oregon
of 1947, and Mrs. Dave Ras-
mussen, who helped her pre
pare the dance for the talent
division of the contest; the
Jaycees; and Mrs. Marjorie
Green and Mrs. C. M. Liz
berg of Burelson's.
"I only wanted to be in the
10 finalists," she said, adding
that she had fell relaxed dur
ing the contest.
Street for
the city hall. Pacific North
west Bell company is send
ing on engineer to Medford
from Portland for the broad
cast. Mayor Snider said the city
has sent information and pic
tures, both stills and movies,
about Medford ond himself to
USIA for distribution in Eu
rope to publicize the forth
coming program.
Medford's mayor also has
received a letter from Miss
Sandra Gillis, the Alba High
school teacher who will be
interpreter for the conversa
tion. She expressed her pleas
ure al being selected and add
ed "speaking, with somebody
living in Medford is like
speaking with somebody of
my own family ... I have
more friends In Medford than
1 1 have here.'
She added thai Mayor Ca
gnasso "Is excited" about the
conversation.
Miss Gillis asked Mayor
Snider what he is going to
say, "more or less," should
the voices not be too clear.
She concluded that "our tel
puouk BuuuacUoa oaual f ova
Annrnnriatinnc
Study Indicates
Trouble Ahead
President Wins
Authorization
Washington-W!-The chair
man of the House Foreign
Aid Appropriations committee
today proposed a $2 billion
cut in President Kennedy's
foreign aid funds.
Kennedy won the first
round Tuesday, when the
House annroved and sent him
a bill authorizing a $4.6 bil
lion ceiling on foreign aid tor
the fiscal year which started
July 1.
But the actual money musi
still be appropriated, and the
legislation to do that was
being studied by appropria
tions subcommittee Chairman
Otto E. Passman (D-La.).
He defeated Kennedy on the
issue last year ond hopes to
do the same this time.
Passman told United Press
International in an interview'
that It was time for Congress
to cut foreign aid spending to
the $2.5 billion level.
Storm Clouds Ahead
"Why, even if we gi"e them
$3.5 billion," he said, "they
wouldn't know what to do
with it."
This means storm clouds
ahead for the White House,
which told Congress last Janu
ary that $4.9 billion was need
ed to run the foreign aid pro
gram. Congress authorized $208
million less but Passman
hopes to cut the original re
quest almost in hall. Me poinis
to unused funds from past
years and the imbalance of
payments problem as good
I justification for the move.
Chances are that passman
will not win the drastic cuts
but the reductions his House
subcommittee votes probably
will be large enough . to
prompt an appeal by Kennedy
to the Senate for restoration
of the money.
Was Slashed $860 Million
Passman kept the foreign
aid program just below $4 bil
lion last year. This represent
ed an $860 million slash from
what Kennedy originally
I wanted. This year Passman
wants to make that cut more
than $2 billion.
In the authorization bill ap
proved Tuesday, Congress
gave Kennedy authority to
continue U.S. aid to Poland
and Yugoslavia when he con
sidered it vital to American
interests. Kennedy wanted
the power to take advantage
of cracks In the Iron Curtain.
Masked Man Robs
Benson Hotel Bar
Portland - fUPt - The bar
tender at the posh London
Bar and Grill In the Benson
hotel was robbed of $200
early today by a man who
masked his face with a white
handkerchief.
Bartender Frank Bartolon
told police he was counting
the money before closing up.
He said when he turned
around the bandit was stand
ing by the money and indi
cating a gun under another
handkerchief over his right
hand.
The robber ordered Barto
lon to leave the bar and then
fled with the money.
Medford
the best of all."
Jack Creager, district man
ager for PNWB, said it was
not known where ihe Mcd-ford-Alba
telephone call will
originate. He added that the
circuit will be monitored for
about one half hour prior to
the coll to there won't be any
chance of a busy signal.
Medford is the only Pacific
Northwest city of 23 in the
United States selected to par
ticipate in the program dur
ing which the mayors in the
United States will talk with
their European counterparts.
It is believed that Oregon's
participation In the sister city
program was why Medford
was selected. Mayor Snider is
head of the Oregon sister city
program.
Mayor Snider said there
are six other cities in Ore
gon which have sister cities.
They are Portland ond Sap
poro, Japan; Klamath Falls
and Rntorua, New Zealand;
Milton-Frccwater and Woln
mate, N.Z.; Eugene and Chin
ju, Korea; Corvallis ond An
tofagasta, Chile, and Forest
Crovi Nad Boraova, Turkey.
O