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$36 Million in
General Fund at
End of November
Most Earmarked
For Special Funds
Salem-TOPD-A cash balance
of $36 million was in the state
general fund on Nov. 30, Leg
islative Fiscal Officer Ken
neth Bragg said at the Bien
nial Tax Conference here
Thursday.
He said about $25.5 mil
lion was earmarked for spe
cial funds.
Bragg said, "There has been
much talk recently of possi
ble deficits, so I decided to
check our present cash bal
ance.
He said while budget defi
cits threatened, there was no
shortage of cash.
He told legislators that
monies within the fund could
be shifted through inter-fund
loans to make up for deficits,
but the money must be paid
back.
More Flexibility
"This gives us a buffer, and
more flexibility," he said.
He told the 23 legislators
and 72 others attending the
conference that changes in the
price of liquor would increase
alcohol revenues from $31.9
million to $34 million next
biennium.
He explained a 4-cent a
pack tax on cigarettes would
produce about $18 million
during the two-year fiscal pe
riod, and proposed income
taxes would raise $239.7 mil
lion during the biennium.
Bragg predicted a $470 mil
lion budget during the 1965
67 biennium, up from the
$405.3 million called for the
1963-65 biennium by Gov.
Mark Hatfield.
Four Persons Die
In Oregon Taffic
By United Press International
A Portland man died when
his car struck a pole in Lake
Oswego today, bringing the
state's toll since early Thurs
day to four.
He was Michael Holmes,
20. Three passengers were
taken to the Oregon City Hos
pital for treatments of in
juries. Three died in traffic acci
dents in Oregon Thursday.
The victims were Charles
Ovid Purdin, 84, of Portland;
Patricia Purdy, 18, of Yam
hill; and Mrs. Blanche Mc
Cullen, 48, of Bakersfield,
Calif.
Multnomah county sheriff's
deputies said Purdin was kill
ed when he walked into the
path of a car. The accident oc
curred near his home.
Miss Purdy was thrown
from her car and crushed by
it Thursday afternoon on a
county road about two miles
north of McMinnville. A trac
tor was used to free her. She
died in a McMinnville hospi
tal. Mrs. McCullen died when
her car went off U.S. High
way 97 into a water-filled ir
rigation ditch 10 miles south
of Klamath Falls. Her 16-year-old
son escaped by climbing
out through a door.
ORDERED TO COURT
Salem-IUPD-Walter Huss, di
rector of Portland's Freedom
Center, has been ordered to
appear in circuit court here
at 10 a.m. Monday to explain
why no list of campaign ex
penditures has been filed with
the secretary of state.
tS(t$BRIEFS
items mo Dy OUN0 THI 0l0M
COST OF LIVING UNCHANGED
Washingion-HPI-The Labor Department reported today
that the coit of living In November remained unchanged from
the previous month. Thii helped factory production workers
realiie an approximate 1 per cent increase in buying power.
TALKS RESUME IN MARITIME DISPUTE
New York-'IH Negoliaton, working under a week end
strike deadline and appeals by Labor Secretary W. Willard
Wirti, resume talks today in the maritime diipule that
threatens shipping from Maine to Texas,
POPE'S MESSAGE TO BE HEARD SATURDAY
Vatican CitylPI The traditional Christmas message to
the world of Pope John XXIII will be broadcast Saturday
at 11 a.m. (PST) on a direct nine-nation radio hook up, the
Vatican announced today.
SPEEDING TRAIN HITS TRUCK! THREE DIE
Okeechobee, Fla.-lPl-The Seaboard Air Line's Silver Star
Passenger train tmaihed into a truck at high speed at i
crowing Thursday night, killing two of the train's crewmen
end the truck driver and Injuring about 40 other persons.
YEMEN CREDENTIALS ACCEPTED
United Nations, N.Y.-lPI-The General Assembly accepted
credentials of Yemen's revolutionary government, newly
recognised by the United States, before adjourning Its 17th
, annual session early today. A
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MISSILE BASES With completion of com
plexes at Plattsburg, N.Y., Air Force Atlas
ICBM bases now stretch across the nation.
Cellar Club Owner
Seeks Reinstatement
Of Dancing Permit
The new owner of the Cel
lar club. Main and Bartletr
sts., appeared before the Med-
ford city council last night
to seek reinstatment of the
dance permit which City Man
ager Robert Duff revoked ear
lier this week.
After considerable discus
sion. Councilman R. L. Van
Sickle moved that a council
Holiday Lighting
Contests Will Be
Judged in Region
Judging of entries in Christ
mas lighting contests in the
Rogue valley will be held Sat
urday and Sunday.
Registration for the contest
in Eagle Point area which is
sponsored by the Eagle Point
Lions club, will close Satur
day, according to Ray Rags
dale, committee chairman.
Registration may be made at
Olsen confectionery.
No registration is necessary
in the Medford contest, spon
sored by the Medford Junior
Chamber of Commerce. Judg
ing will be by city wards, ac
cording to Bob Burton and
Ray Powers, co-chairmen of
the contest.
Judges will select six top
entries in each ward Saturday
night, with each judge han
dling one ward. On Sunday,
the four judges will consider
all selections, and will award
prizes in each ward, plus one
sweepstakes prize. Winners
will be announced Monday,
Dec. 24.
All homes on city streets
are automatically considered
in the contest, Burton and
Powers said. Homeowners liv
ing in out-of-the-way places
may call the Jaycees to be
sure their Christmas lighting
is judged.
Contest judges will be
James Dunlevy, Bill Singler,
Dick Walsh and Dick Travis.
Prizes are on display at radio
station KSHA.
The Eagle Point lighting
contest is open to all residents
within a five-mile radius of
Eagle Point. Judging will take
place Sunday, and three prizes
will be awarded.
FIRE HAZARD
Portland -WPli- The. Christ
mas tree in city hall came
down today because it was
ruled a fire hazard.
ATLAS BASES
committee be appointed to
meet with the owner, Richard
Barnett, to discuss the situa
tion. The dance permit revoca
tion, which had been recom
mended by the city police
department, was allowed to
stand.
Duff told the council there
was "nothing personal" in the
permit revocation and that he
had respect for Barnett and
his plans for operating the
upstairs restaurant.
"However, there have been
a number of incidents involv
ing the club on the police re
ports recently. These inci
dents are growing more seri
ous all the time," Duff said.
The revocation was trigger
ed by an altercation at the
restaurant last Saturday night
in which a man and a woman
were knocked down a flight
of stairs. The woman had to
be hospitalized.
Barrett told the council he
was 'not happy about the
hohemian clientele" his place
was attracting. But he assur
ed the group ihat he was "try
ing to change the image" of
the club and begin to cater
almost exclusively to teen
agers.
In making his motion, Van
Sickle said he "did not like
to penalize the new owner
for the record of the previous
owner." Barnett assumed the
operation late in November.
Since the restaurant open
ed last summer, there have
been 1 1 different incidents re
ported to police. Two of those
occurred since Barnett be
came owner.
The council split 4 to 4 on
Van Sickle's motion. Mayor
John W. Snider broke the
deadlock, voting in favor of
the proposal.
Snider announced today the
appointment of Councilmen
elect Dick Travis and Joe
Hosick, together with Van
Sickle to the committee to
meet with Duff and Barnett.
The committee, chairmaned
by Travis, will act as an
advisory group to the city
manager.
Man Believed Seen
Here Is Arrested
Reports that one, of the
FBI's 10 most wanted men was
seen in this area apparently
turned out to be a false alarm
late yesterday afternoon
when state police received a
message from the Chicago
FBI office that John Lee Tay
lor had been arrested there.
Taylor was wanted for rob
bery, assault, rape and inter
slate flight.
Taylor was reported being
seen in the Roberts rd. area
and near Hunter's Tavern.
Both state police and sheriffs
officers combed the area, but
were unable to find a man
meeting the description.
The sheriff's office also
maintained an all-night natrol
and starch in the railroad
area of Ashland after a local
resident reported she had
seen a man earlier in the day
whose description fitted that
of Taylor.
SHQPP1N B
DAYS LEFT
CHRISTMAS SEALS lljMTBini
HHer RESPIRATORY DISEASES
... . , . UWVWWVVWW
The above map shows location of the bases,
both operational and training, in 11 states.
(UPI)
WEATHER
FORECAST: Valley fog and
occasional drizzle tonlcht and
Saturday. Possibility of a lit
tle afternoon clearing In vi
cinity of Ashland, Fair and
mild above foe Low tonight
30-35. High Saturday 38-43, ex
cept 52-56 above fog.
Tempi
Highest Yesterday 39
Lowest This Morning 34
Our Skies Tonight
Prec. to 10 a.m. Today, Trace
Sunset today 4:42 p.m.
Sunrise tomorrow .... 7:37 a.m.
Winter begins tomorrow
at 12:15 a.m.
as the sun rides low as it
enters the Sign of Capricorn.
Moonrlse tomorrow .. 3:16 a.m.
New Moon Dec. 26
1'ROMINKNT
CONSTELLATION
Orion, rises 6:12 p.m.
and will be high in south at
midnight.
Medford Council
Passes Off-Street
Parking Proposal
In what Medford Attorney
Otto Grohnmayer afterward
termed an "historic action,"
the Medford city council last
night unanimously passed an
off-street parking district
ordinance.
The measure is an out
growth of a series of discus
sions held recently between
city officials and representa
tives from the central busi
ness district, talks which City
Attorney William Mansfield
characterized as noteworthy
for "their spirit of coopera
tion." Mansfield said the ordi
nance "prescribes the proce
dures of initiation of off
street motor vehicle parking
facilities He stressed the mea
sure "does not establish any
particular parking district,
but merely provides the ma
chinery by which such a dis
trict can be initiated at any
time in the future."
May Petition Council
Mansfield said the ordi
nance provides that a group
of land owners may petition
the council to establish a
parking facility, or the coun
cil, on its own motion, may
take the first step.
When such a step is taken,
he continued, the city man
ager, under the ordinance,
would then be directed to
survey the feasibility of such
a project and make a report
to the council on his determi
nations. "It would be up to the
council then, if it desired,"
Mansfield said, "to pass a
resolution declaring its inten
tion to establish the facility.
Such a resolution would also
designate the boundaries of
the district."
Such a solution, he said,
would also require the coun
cil to publish notice and hold
a hearing on its intention. In
the same resolution, the coun
cil would be required to
adopt a method of assessment
at or prior to the time of the
public hearing.
No Immediate PUnt
City Manager Robert Duff
said today that so far as he
knew there were no plans for
immediate implementation of
the ordinance by the city or
any downtown group.
He added, however, that he
understands the old federal
building at Sixth st. and Ri
verside ave. may be declared
surplus by the government in
the near future.
"If the city is given an op
portunity to purchase the
land, present expectations are
that we would," Duff said.
The building would be torn
down and a municipal park
ing lot constructed on the
property.
Such a project would be
undertaken at no expense to
the taxpayers, he stressed. All
costs would be assessed to
benefitted downtown prop
erty by a method as yet unde
termined. Duff said.
FUNDS ALLOCATED
Portland -1'Fli- Oregon has
been allocated more than $5.5
million under the new Area
Redevelopment Administra
tion and the accelerated Pub
lic Works program, an ARA
officer said Thursday.
Regional Edition
Medford
22 Pages Two Sections MEDFORD, OREGON,
U.S. Britian
Nuclear Bomber To
Decision Marks
Real Start on
ikinq Power
Communique Ends
Nassau Meeting
Nassau, Bahamas -(OTP- The
United States and Great Brit
ain agreed today to assign
nuclear bombers now, and Polaris-equipped
submarines lat-
to a combined nuclear
force within NATO.
The historic arrangements,
representing the first real
start on multilateral nuclear
striking power under NATO
direction, were announced by
President Kennedy and Prime
Minister Harold Macmillan as
they ended their three-day
meeting here.
To replace the abandoned
Skybolt missile program, the
United States will provide its
Polaris missiles, at production
cost, but without nuclear war
heads, to the British when
they have submarines capable
of using these weapons.
Seen by 1970
It was expected that the
first Polaris missiles would
not be turned over to the Brit
ish for actual use until about
1970, because time will be
needed for construction of the
nuclear submarines.
To start on development of
a multilateral nuclear force,
Kennedy and Macmillan
agreed to subscribe to NATO
immediately Anglo-American
units now in existence from
the U. S. strategic forces, in
cluding the Strategic Air Com
mand; United Kingdom Bomb
er Command and from tacti
cal nuclear forces now in Eu
rope.
Their joint communique, a
separate document from their
nuclear defense statement,
covered a broad range of
topics including:
Cuba A satisfactory reso
lution of this crisis might open
the way to the settlement of
other problems outstanding
between the West and the
Soviet Union."
Berlin They reaffirmed
their desire for a "solid and
enduring settlement which
would insure that Berlin re
mains free."
Sino-Indian conflict They
promised special consideration
of new assistance to India
and expressed the hope the
current situation would lead
to reconciliation of Indian
Pakistan differences.
Congo They agreed to con
tinue trying for "equitable
integration" of the Congo, and
supported the Belgian propos
al for "a fair division of rev
enues" in the Congo.
Seek Test Ban Pact
Disarmament They reaf
firmed their intention to press
for a nuclear test ban agree
ment with the Soviet Union.
The communique was com
pleted in final draft this
morning after Macmillan re
ceived overnight approval
from the British cabinet for
the nuclear weapons plan.
At the outset of the Big
Two meeting, which began
here late Tuesday, the British
were unhappy about the U.S.
decision to abandon the cost
ly Skybolt program. Britain
had counted upon the Skybolt
as the primary weapon In Its
independent nuclear striking
arm.
Joint Enterprise
Kennedy offered to contin
ue the Skybolt development
program as a joint enterprise.
This would have cost each
country about $100 million.
The United States already has
$375 million invested in Sky
bolt to about $25 million for
the British.
Macmillan turned down the
offer because of uncertainty
about final cost of the pro
gram and date of completion,
plus doubts about the ultimate
success of the weapon.
Spokesmen for both sides
said Macmillan and Kennedy
considered the Nassau meet
ing "the most Important and
constructive" of their six conferences.
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i . i iiyfcfc iniiii in in infiiii aeei i iiieiiftiriiMiiiii i iiiiimne n n-Frfftfl ' in i
CUTS FREEWAY RIBBON Gov. Mark O.
Hatfield, assisted by Miss Oregon, Martha
Louise Wyatt, Jacksonville (left), and
Sportsfair Queen Joan Callaghan, Eagle
Point (right), snipped a red
2:45 p.m. yesterday and opened the new highways.
Note of Warning on
Highways
A note of warning that the
state can "no longer afford
to engage in bonding" to fi
nance future highway con
struction in Oregon was
sounded yesterday by Gov.
Mark O. Hatfield.
The warning was issued in
the governor's address at
ceremonies opening the new
15.4-mile section of Interstate
5 freeway through the valley.
More than 100 persons, in
cluding a host of state, county
and city officials and other
dignitaries, gathered for the
ribbon - cutting ceremonies
near the Barnett rd. Inter
change.
Hatfield Introduced
Glenn L. Jackson, chair
man of the state highway
commission. Introduced Hat
field as a man "who has
brought a new Image to the
state of Oregon."
The governor said that of
the three major construction
projects in the state High
ways 42 and 197 and the As
toria bridge about 45 per
cent of the total costs will go
toward payment of Interest on
bonds.
"The new legislature will
be under tremendous pressure
from various areas in the stale
who want new construction
on a bonded basis," he suid.
"The requests may amount to
as much as $400 million."
He urged the citizon of
Oregon to back the legislature
In opposition to further bond
ing for highway construction.
Calls for Changes
Hatfield called again for
three specific changes in Ore
gon driver laws because "we
have not met the challenge in
traffic safety."
He said he would ask the
next legislature for a speed
limit in conjunction with
basic rule laws, for authoriza
tion for arrest on probable
- '
FRIDAY, DECEMBER 21,
Will Assign
"
ribbon about
Given by
cause, and for an "Implied
consent," measure which
would permit investigating of
ficers to conduct sobriety tests
on suspected drunk drivers.
Hatfield announced his in
tention, too, of asking for leg
islation mnklng seat belts re
quired standard equipment for
all new cars sold in the state.
Assisted In Cutting
The governor was assisted
in cutting the red ribbon by
Miss Oregon, Martha Louise
Wyatt, Jacksonville, and Miss
Joan Callaghan, Sportsfair
Queen, Eagle Point.
About a dozen members of
the Old Timers Car club, driv
ing antique autos, led the
premier procession over the
new section of freeway. Hat-
Community Colleges
Association Formed
Salem -JUPD An Oregon As
sociation of Community Col
leges was established today
by representatives of Oregon's
community colleges and vocational-technical
schools.
Jackson County Will Receive $80,515
From Highway Commission for Roads
Allocation of $3.7 million I accordance with a formula us-1 River 1.35 A7S Jkn i
Allocation of $3.7 million
for county road construction
was made Thursday by the
Oregon State Highway coin
mission at Its meeting here.
The funds, which go to all
30 counties in the state, in
clude $2.2 million in federal
i money, with the remainder
split between county and state
matching monies.
The federal money comes
,from the 1904 federal-aid see
jondary highway funds. The
allocations were computed in
57th Year Price 10 Cents
Tribune
1962
No. 235
NAT
15.4-mile section of Interstate 5 freeway
through Medford. A crowd of more than
100 persons witnessed the event. In a ded
icatory address, Hatfield reiterated his plea
for increased attention to safety on public
Bonds for
Hatfield
field rode in the lead car, a
1915 Model T oFrd, driven
by Earl Kurz, Talent.
Also speaking at the dedi
cation ceremonies were Med
ford Mayor John W. Snider,
Murray Gardiner, president of
the Medford Chamber of
Commerce, and Balrd French,
bureau of public roads.
Snider said, "This is a great
highway running through a
great valley. I am happy to
see that Medford is by-passed
and not passed by."
Gardiner paid tribute to
Jackson and the state high
way commission for their
work. He said, "Medford is a
fine place to visit and an
even finer place to live."
French told the audience
that similar dedication cere
monies "are happening all
over the country."
He pointed out that the
Oregon freeway is part of a
national 41,000-mile network
of modern highways, a sys
tem with a total cost of $41
billion, which amounts to a
cost of about $1 million a
mile.
accordance with a formula us
ing 1960 census figures and
1902 county road mileages.
The funds will be made
available to counties Immedi
ately, the commission said.
Federal money was allotted
as follows:
Baker $38,257, Benton $45,
787, Clackamas S14B.780, Clat
sop $39,831, Columbia $44,
780, Coos $76,415, Crook $35,
387. Curry $38,332, Deschutes
$40,178. Douglas $103,813:
William $2.1.608. Grant
65, Harney $35,093. Hood
Seven Residences
Set in Flames by
Exploding Craft
Debris Rained
On School Yard
Portland 1UPD An Air Na
tional Guard jet fighter fell
into a residential neighbor
hood near here Thursday, set
ting seven homes afire and
raining debris on a school
yard where children were
playing.
Only two persons received
minor injuries. Three of the
homes were extensively dam
aged. A six-man Air Force team
from McChord Air Force Base
at Tacoma, Wash., headed by
Col. J. J. Ruttgers, began an
investiagtion into the cause of
the crash and the extent of
damage.
Information Officer Capt.
Arthur Kearney said the pi
lot's statement indicated that
the plane caught fire during a
practice landing approach at
Portland Air Force Base.
The plane crashed into the
suburban Parkrose area just
east of Portland.
Residents fled their homes
as the F-89 tore a large hole
in the yard of one home and
flaming debris struck the
houses.
The plane's pilot, Capt.
James R. Alley, 27, of Port
land, and the radar observer,
Lt. John R. Loacker, 21, also
of Portland, parachuted Into
a field a quarter of a mile
away.
Kearney said the pilot and
radar observer ejected "at
about 600 feet and that's cut
ting things pretty short."
"There was one big ex
plosion," said Mrs. E. W.
Anderson, whose home was
across the street from the
crash. "Then there were lots
of smaller explosions while it
was burning." The Air Force
said the craft carried no live
ammunition.
The series of explosions
after the crash accounted for
burns to one fireman and a
minor cut to a woman by
stander. Two boys playing at Pres
cptt Elementary School fled
in terror when they heard the
whine of the jet. Wreckage
punctured holes In the school
roof and fell where the boys
had been playing.
I heard this terrible noise
and then there was a big red
light and fire was every
where," recalled Mrs. Eve
Berry. "I was scared, very
scared."
Mrs. Anderson said her
whole house was like a ball
of fire. Red was everywhere.
I naturally thought it was an
atomic bomb."
(Picture on Page 2A)
L 1 rA i"
nnsimas uonaiions
Said Falling Short
Christmas donations to Sal
vation Army kettles and
through the mail are falling
short this year, according to
Al Dumas, chairman of the
Salvation Army Christmas ef
fort. Mail donations are nearly
$2,000 short of last year, he
said.
Because several organiza
tions that formerly gave bas
kets are not giving them this
year, the basket load is heav
ier for the Salvation Army.
Canned goods have been re
ceived from various groups,
Hedrlck Junior High school,
and the Junior Red Cross.
However, Dumas said, this
does not fill the need for the
350 baskets being prepared.
Those wishing to participate
In the Christmas effort may
call the Salvation Army at
773-7335.
Insurance Firm Goes
Broke Following Storm
Hlllsboro (UPB The 79-year-old
Pioneer Mutual In
surance Co. of Hlllsboro has
become a victim of the Colum
bus Day storm.
The firm was placed In re
ceivership Thursday. It said
claims exceeded assets by
more than $131,000.
River $35,875, Jackson $80,.
SIS. Jefferson $32,371, Jose
phine $46,846. Klamath $66,
057, Lake $35,326, Lane $154,
055, Lincoln $45,862, Linn
$82,500;
Malheur $65,796, Marlon
$120,055, Morrow $34,642,
Multnomah $224,108, Polk
$50,449, Sherman $24,688, Til.
lamook $44.3.12, Umatilla
$75,278, Union $34,901, Wal
lowa $33,089, Wasco $37,866,
Washington $132,019, Wheeler
$22,478, and Yamhill $57,507.