MEDFORD MAIL TRIBUNE. MEDFORD. OREGON
FRIDAY. AUGUST 31. 1962
'filter
TO DELIVER SPEECH The popular clos
ing night ceremonies at the Oregon Shake
spearean Festival theater in Ashland this
year will welcome back an Ashland veteran
from previous seasons. Richard Graham,
shown above with Mrs. Graham and Pro
ducing Director Angus L. Bowmer (left),
will deliver the ' Our revels now are ended
. . ." speech that annually ends the Festival
season. Graham, seen previously at Ashland
in such roles as King Lear and Coriolanus,
is shown here prior to an evening perform
ance of the 1962 Festival season.
i. .
If -
1 i '- - -
Your Money's
Worth
By SYLVIA PORTER
Copyright, Hall Syndicate, Inc.
TAX OVERHAUL IS KEY TO STRONGER GROWTH
i, Editor'! nots: This is the second of two columns on Busi
ness Outlook.
..William F. Butler, the nationally respected economist vice
president of the Chase Manhattan Bank of New York, be
lieves, as I reported Thursday, that we'll be into the fifth
recession of post-World War II within a few months. While
liei.expects it to be mild, he also thinks we'll not get out of
our recent pattern of slow, sluggish growth and incomplete
recoveries unless we do something to stimulate our economy.
I.Thursday's column ended with Butler emphasizing that
lh lag in business investment in plant and equipment ex
plains our failure to achieve full prosperity. Here is a con
tinuation of his views as he gave them to me at a luncheon
8t the Chase bank this week.
,.Q. Why li;s business investment lagged?
j. A. Because of the disappointing periormanct of
profits - which have been placed in a squeeze in recent
years. While industrial prices on average have remained
table, costs have continued to rise and "this has squeezed
profits to a level where business cannot afford to lift
investments in new plants and equipment high enough
to support general prosperity."
Q. What can we do about the profits squeeze?
A. There are no pat, simple remedies but we must
tackle all the forces causing it if we are to get the U.S.
back into a vigorous advance. Business must work to
keep costs under control and to develop and market new .
products which will keep sales expanding. Labor unions
must curb wage demands, for excessive wage increases
lead only to inflation or unemployment. The federal
government must pursue responsible money policies.
And we need "a basic revision of our tax structure."
Q. What kind of tax revision is necessary?
A. The corporate income tax must be cut - from 52
per cent to, say. 45 per cent. The sleep progression in
personal income lax rates must be reduced to encourage
investment in non-corporate businesses. A general reduc
tion in personal income taxes will head off recession.
Butler is thinking in terms of a total tax cut of $8 bil
lion or so, says, "The Federal deficit need not be in
creased by anything like this amount, if at all."
Q. Why is tax revision so necessary?
A. First, it would check the on-coming recession,
Second, it could make the next advance a powerful one.
lor it would restore profit margins, lead to higher busi
ness mending for more efficient plants and this, in turn,
would stimulate all business activity to the point where
business spending for expansion of plants again would
be essential.
Third, it would reduce the deflationary impact our
federal lax system now has on the general economy.
Taxes today lake so big a total of funds from paychecks
and profits when business is rising that the withdrawals
themselves lend to choke off the rise after a year or so.
Q. But can we afford to cut taxes?
A. Butler acknowledges that the chief objection to
lax revision program is that it would swell the budget
deficit, but he argues. "Actually the surprising thing is
that a program of tax revision which effectively stimu
lated economic activity might not increase the deficit in
the short run and it could produce a balanced budget in
brief period, if federal spending is controlled." If we
do not cut taxes and we have a recession in 1963, we'll
automatically have a big deficit. If we do cut taxes and
really stimulate the economy, the deficit next year would
be no larger than that which would be created by a
recession. Tax revision "is the only way we can get out
of the pattern of slow growth and repeated deficits."
Q. What would be the effect on our dollar's reputation?
A. It won't add to stresses on the dollar if we make
It clear we're setting out to restore basic incentives to
growth in our economy, are prepared to balance the
budget when prosperity has been attained and if we
pursue money policies to defend the dollar in the interim.
Q. If the administration. Congress and the public get
behind this sort of program now. then what?
A. If we can muster the discipline and sense of na
tional purpose to make these adjustments, "I foresee a
- truly phenomenal period of economic growth in the
decade ahead."
This has been Butler speaking. Of course you ve guessed
that the reason I've so painstakingly recorded our conversa
tion is that I fervently agree with him.
Negotiators on
Lumber Issue
Will Meet Again
Ottawa -HOT- United States
and Canadian negotiators end
ed Iwo days of talks Wednes
day on the U.S. softwood lum
ber problem and agreed to
meet again soon.
A brief statement said both
sides had discussed the im
pact of Canadian lumber ex
ports on the U.S. west coast
industry and the long-term
lumber situation for both
countries.
"The delegations will re
port back to their respective
governments and consult with
their industries," the state
ment said.
The talks were initiated at
the suggestion of President
Kennedy following pressure
by Congressmen from lumber
states in the U.S. northwest.
Solution Expected
Kennedy made the request
a month ago, asking for ne
gotiations on possible volun
tary quotas by Canada on its
lumber exports.
Sen. Warren G. Magnuson
(D-Wash.) said he was confi
dent the two nations could
work out an equitable solu
tion. A spokesman for the Lum
ber Manufacturers association
in Washington said it was
hard to judge at this point
how the talks were going.
He said the association might
have a comment when more
information was available on
details of the Ottawa discus
sions. "I think all of us are very
pleased that they (Canada)
would sit down and talk about
the problem," he said. '
Albany To Revert ;
To Standard Time I
Albany VPl- Oregon s check
frbtiarri time pattern starts!
changing again Monday. I
Albany civic and business
leaders, w'io iisd informal
fa-t time during the summer.
County Assessors
Elect Eugene Man
Three Accidents
Reported in Area
Three accidents were re
ported to slate police Wed
nesday. No injuries were re
ported. About 12:50 p.m. Wednes
day a car operated by Elsie
Odessa Pratt, 35, of Dunsmuir,
Calif., struck a parked car be
longing to Betty Ann Ritchie,
of 431 Hospital dr., Ashland,
on High way 89 between Phoe
nix and Talent.
Slate police said the ' itch
ie vehicle was parked along
the highway while the oper
ator was obtaining gasoline
when it was struck by the
Pratt vehicle.
A rear-end collision was
reported on Highway 62 near
Prospect Wednesday, but no
injuries were reported. Ve
hicles operated by Roy
Charles Thomason, 31, of
Susanville, Calif, and Amos
Anderson Smith, 66, of 209
Gibson St., Talent, were in
volved. About 1:40 p.m., a vehicle
operated by Grace Hope
Orr, 69, of 5969 Table Rock
rd., was sideswiped by a pick
up driven by Robert Lee
Oday, 53, of 1353 East Mc
Andrews rd., police said.
ELECTED PRESIDENT
Corvallis, Ore. - ilPli nr.
Horace L. Barnett, West Vir
ginia University, Thursday
Klamath Falls - UTI' - Ken- was elected president of the
ncth Omlid of Eugene has , oociciy or Amer
been named president of the
Oregon Stale Association of
ica.
Khrushchev Faces Fateful
Decision on Berlin Crises
By STEWART HENSLEY
Washington - HW - Soviet
Premier Nikita Khrushchev
faces a fateful decision on
Berlin. His next move could
spell the difference between
peace or war over the long
smouldering issue.
He has put himself on the
spot by intensifying his
threats to make a separate
peace treaty with Communist
East Germany and isolate the
United States and its occupa
tion allies in their exposed
position in West Berlin.
But he has yet to name the
date. Top American officials
think he slill is weighing the I
consequences.
Lengthy talks between So
viet and American officials in
New York, Washington, Ge
neva and Moscow over the
past 10 months have produced
a complete deadlock on the
central issue: Khrushchev's
demand that the allies pull
out of West Berlin and permit
it to become a demilitarized
"free city" at the mercy of the
surrounding East German
Communists.
President Rejects
President Kennedy has re
jected this en toto. He stands
firm on the position that the
United States. Britain and
France are in West Berlin on
the basis of war-won occupa
tion rights which cannot be
liquidated short of an all-German
settlement based on re
unification of the country.
Sporadic Soviet - American
diplomatic contacts are con
tinuing, apparently because
each side is fearful of the
consequences of losing touch
entirely and risking war by
miscalculation.
Red satellites and neutral
ists are beginning to ask em
barrassing questions.
The Soviet premier has a
choice of three courses, as top
American officials see it. He
can:
-Conclude the long-threat
ened treaty witn Communist
East Germany and run the
risk of war by giving the
local Reds complete authority
to interfere with and control
allied access to the city. Ken
nedy has warned that the
Americans will not tolerate
Communist German control
and will fight if necessary to
stay in the city and keep the
access routes open.
-Go through with the treaty
but retain Soviet responsibil
ity for guaranteeing the al
lied access rights. This is the
sort of deal the western pow
ers could "live with" if they
had to. They insist Russia is
bound by wartime agreements
to keep the routes open and
cannot hand over this author
ity to the East Germans.
-Back down and let the
issue slide for the time being,
risking increased complaints
from the East German regime
and loss of face throughout
the world.
Realizes Danger
Most U.S. officials appear
to believe Khrushchev is con
vinced of Kennedy's firmness
on the central issue and re
alizes the danger of war if he
follows course number one. At
the same time, they doubt the
Soviet premier can adopt the, try to save face by arranging
third choice. some sort of treaty but will
The betting here is that I stop short of action which
Magnuson Sees
Lumber Solution
Washington-(UPli -Sen. War
ren G. Magnuson (D-Wash.),
one of the leaders of the con
gressional lumber bloc, says
he is confident the United
States and Canada could work
out an equitable solution to
the softwood lumber issue.
Magnuson said he still was
hoping Canada would volun
tarily cut back its softwood
lumber exports to the United
States "until we can work
out these things on a techni
cal basis."
The first phase of US-Can-adian
negotiations on the lum
ber issue ended Wednesday
in Ottawa. A statement issued
in Ottawa said the talks would
be resumed in the near future.
100 rft ntjlnl tpir.lt 80 Droit,
Intcrrut.Oflf! D'tMleritt Co., L Ik,
decided to turn their clocks County Assessors.
back Monday so that schools
could open on standard time.
Most of the state, and the
country, will wait until Sept.
30 to make the switch.
succeeds Clyde Cald-
Klamath County asses-
Who are
WHJTE
He
well,
sor.
Other officers elected were
Robert Lyons, Bend, first
vice-president: and Don Hat
tan. Oregon City, second vice
president. Glenn Horn. Mad
ras, was reelected secretary
treasurer. The 50th annual convention
will end today.
DEER HUNTERS!
Let us process your deer
this season.
Custom Butchering
and Cold Storage
VALLEY LOCKERS
& MEATSmkon'
ludd Carr Sranoil Britlun
5151382
ultimately Khrushchev will
take the second course - a
treaty which would still with
hold from the East Germans
control of the access routes.
Russia could write a protocol
to this effect into the treaty.
Secretary of State Dean
Rusk acknowledged during
meetings last month in Ge
neva with Soviet Foreign Min
ister Andrei Gromyko that the
United States had no way to
block a Moscow treaty with
East Germany.
However, he warned that
Washington would consider it
nothing but a "scrap of paper"
and concede no sovereign
rights to East Germany. He
told Gromyko the Russians
should be careful not to start
or sign anything they could
not control.
Try To Save Face I
There are several factors
which lead top officials here
to believe Khrushchev will
might provoke open warfare:
-The Soviet leader, plagued
by economic difficulties at
home and ideological troubles
with his Red Chinese allies, is
not in a good position to risk
war.
-Khrushchev told Austrian
Chancellor Alfons Gorbach in
Moscow in June that he was
certain he could handle a
treaty without forcing things
to the point of military con
flict with the West. He said
he would let the allies retain
access rights for the time be
ing and count on "whittling"
them away later.
Khrushchev's present set of
Berlin demands were first
made on Thanksgiving Day,
1958. in a long memorandum
to the United States.
A lengthy Big Four foreign
ministers' conference in Ge
neva in summer, 1959, failed
to make the slightest progress.
Western proposals for set
tling the whole German ques
tion by reunifying the country i which have failed to make any
under genuinely free elections i dent on the central issue
were flatly rejected by the
Russians.
Renewed Demands
President Kennedy inherit
ed the deadlocked dispute.
When he met Khrushchev in
Vienna in June, 1961, the So.
viet leader renewed the de
mands, setting them forth in
extremely ugly and tough
terms.
He apparently sought to
stampede the new president
into concessions.
Kennedy reacted by order
ing an increase in overall
American military strength
and sending more troops to
join the six U S. divisions al
ready in West Germany. Then
began the long scries of So
viet - American negotiations
American ofiicials believe
Ihcir first word that Khrush
chev is preparing to actual
ly sign an East German treaty
- if he so (U'ciues - probably
will come through neutral na
tions. They believe ivhrushchev
would be anxious to rally as
much neutralist support as
possible, hoping to persuade a
large number to follow his
lead in recognizii g the sov
ereignly of the F.ed German
regime. Presumably he would
want to explain in advance
his reasons for the move. And
the neutrals are notoriously
poor secret-keepers.
Thus, as summer simmers i
away along the humid banks i
of the Potomac, U.S. officials
keep a wary eye on the Com
munists across the grim Ber
lin Wall. And tbey also are
listening to reports and ru
mors in the neutralist camp
which may tip off Khrush
chev s eventual intentions.
FEDERAL AUTOMATIC ALARMS
Insurance can't replace children, priceless belong
ings, or business papers. For free estimate on fire
or hurglar alarms for home or business, safe pro
lection, door bells and signaling systems, call
773-1754
Belter a Year too Soon Than a Day too lalel
' You wouldn't call
a baker to
pave your driveway!
WE'RE HAVING
a SPECIAL
SALE
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PROJECTORS SCREENS
HUDSON'S
ROGUE CAMERA
613 E. Main 773-4288
HEAT YOUR HOME THE BEST WAY
AND SAVE MONEY TOO!
The cost of heating your home or place of business is not told
entirely by the price you pay for fuel. For example, look at a
few money-saving advantages of using ELECTRIC ENERGY rather
than burning fuel:
Electric Heat requires no vents for smoke and messy flame byproducts, so no heat
is wasted up a chimney or flue.
Flameless Electric Heat Is as clean as sunshine . . hcips cut down cost of deaning
waifs, furniture, fixtures, and consumes no oxygen!
Electric heating systems are simple and efficient . . . create fewer maintenance,
repair, and cleaning costs to add to your heating bills. '
Electric Heating systems cost less to install than most flame-type systems.
AND NOlrV THIS SPECIAL MONEY-SAVING BONUS:
Until December i, Cal-Ore Electrical League heating and wir
ing contractors are authorized to allow you a special wiring
bonus allowance of $6.00 per kilowatt of installed heating capa
city! For many home owners and business people, this can mean
A MINIMUM SAVING OF 90.00 OR MORE!
IMPORTANT: Get complete details from your contractor
before installation.
(Ask him, too, about the Wire-On-Time Plan)
Participating Electrical Heating and Wiring Contractors:
Brooks Electric 772-5209
Court Street Electric Ttnl! 535-4135
Electronic Service 773-1971
Enloe Electric (T.lenll 535-1269
Feldman & Olson Electric 773-7751
PARTICIPATING
Westinghous8 Electric Supply Co.
Harrison Electric ,c MMl 664-2091
Norpac Supply 773-4645
Rogue Electric Service 772-6603
Rush Electric Company 772-4960
Trowbridge Electric 773-6241
DISTRIBUTORS:
Sloan Co. King-Swan-Cavalier
HEAT MODERN - SAVE MONEY - WITH CLEAN ELECTRIC HEAT