fo)
Oregon May
As Result of
Have To Dig Up $40 000
Scandal at Withycombe
Of
JUSTICE
Mfo)
TO
mmw
Appling To Give
Documents Listing
Men Responsible
Subcommittee To
Hear Secretary
Salem - (UPD - A subcommit
tee wiii be given the names of
other officers in connection
with a military scandal that
may cost Oregon $40,000, Sec
retary of State Howell Ap
pling Jr. said today.
His remarks came on the
heels of a legislative fiscal
officer's report that Oregon
may have to dig up $40,000
to repay the federal govern
ment for money misused by
the State Military Depart
ment while the late Alfred
Hintz was adjutant general.
To Provide Documents
Appling said he has been
asked to appear before the
Ways and Means subcommit
tee and plans to do so.
"At that time I will pro
vide the documents which will
indicate the names of the re
sponsible officers in each
questionable transaction," he
said.
He indicated some of them
still are serving in the Oregon
National Guard.
The $40,000 liability figure
was given by analyst Cleigh
lon Penwell as the subcom
mittee continued its review
of the Military Department
budget.
A secretary of state's audit
last month put the state's
liability at $26,339. Penwell
said continued investigation
indicates the total may reach
$40,000. :.
The case came to light last
year not long after Hintz
died. It centered on Camp
Withycombe ' in Clackamas
county.
It initially involved what
happened to surplus property
from the Tongue Point Naval
Station. Investigation showed
S6.388 was put into a special
cash fund authorized by Hintz.
Audit Detailed
The secretary of state's
audit detailed misuse of
funds in the department. The
items included falsified
claims, sale of federal prop
erty, use of federal funds for
unauthorized projects, misuse
of state money, and use of
paint and supplies for the gen
eral's home.
The report included these
items -
An oven, cooktop and
electric hoist, bought for ar
mories, ended up in Hintz's
home, the hoist as an eleva
tor. A check drawn for en
campment rations was used
for activities at a governor's
day review and the balance
turned over to Hintz.
Sale of Tongue Point logs
valued at $13,065, for $6,980,
including moving costs.
Medford Paint Used
Use of paint purchased
for armories at Medford, Dal
las, St. Helens and Clackamas
on the general's house.
A grand jury investigated
the Withycombe affair last
year, but failed to return any
indictments.
Rep. Beulah Hand, chair
man of the subcommittee, said
in addition to the $40,000 the
situation could jeopardize oth
er federal funds.
Gov. Hatfield Notes
Oregon's Birthday
Salem -H!PH-Gov. Mark Hat
field said today's 104th birth
day of Oregon "is a time that
is fitting for reflection on our
state s history and its prog
ress." SERIOUS FIGHTING ERUPTS
Bighdad, Iraq-lPt-The firtt
lince Sunday erupted today on
NEWS(BRIEFS
rftMS FROM m nr AHOUND THI 010H
which runs through the heart of this Iraqi capital. em states.
O'Neill said talks would re-
GOLDFINE AGREES TO TERMS j sume in Chicago next Tuesday
Wehingion-4PI-Textilt magnate Bernard Goldfine hat i and that he is confident the
greed to the tale of ill hit corporate and personal utett to negotiators "will return to
tetlle federal tax claims of teveral million dollars egeinit San Francisco with an agree
him, Ally. Gen. Robert F. Kennedy ennounced today. ; ment in their pockets."
j The dispute centers about
SABOTEURS SAID TRAINED IN CUBA i the clerks' demand that men
Wuhinaton-'IPI'-Hundredt
trained in Cube in guerrilla
thip of insurgent movementt.
A
Rogue Valley Edition
Medford
36 Pages Five Sections
L
SOIL SAMPLES - Test holes to determine
the type of footing necessary for Medford's
new post office and federal building started
this week at the site south of Library park.
Five holes, ranging to 100 feet in depth, are
Proposed Tax Cuts
M ust Be Approved,
Kennedy Insists
Washington -UPD- President
Kennedy insisted today that
his proposed tax cuts must be
approved to guard again.st in
creased unemployment and a
recession.
Kennedy . told his news con
ference that the American
people and lie. personally are
concerned about the size of
the budget deficit and the na
tional debt. ,.
"But what I am most con
cerned about is preventing
another recession," the Presi
dent said.
He said that unless there
is a tax cut he believes there
is a substantial threat of in
creased unemployment
"which increases the chances
for a recession" and an even
higher deficit.
"The tax cut argument rests
on the desire to stimulate the
economy," he said. . And he
stressed that this aim was
intertwined with the nation's
security, its balance of pay
ments position and other
vital matters.
Kennedy had been asked
about a statement by Chair
man Walter Heller of the
Council of Economic Advisors
to the effect that opposition
to Kennedy's tax cut plan
resulted from "the basic puri
tanical ethics of the American
people."
The questioner noted that
there was public concern over
Kennedy's forecast of a $11.9
billion deficit in fiscal 1964 -the
second highest in peace
time history.
The President noted that in
1958 former President Dwight
D. Eisenhower had predicted
a $500 million deficit but
there was a recession and the
budget went into the red for
a total of S12.5 billion - the
highest peace time deficit. In
1960, a similar situation de
veloped, Kennedy said.
The President said he was
IN BAGHDAD
serious outbreak of fighting
both tides of the Tigris River
of Latin Americans ere being
warfare, lebolage, and leader-
U.S. official, reported today.
MEDFORD, OREGON, THURSDAY, FEBRUARY 14, 1963
being drilled by the Pittsburg Testing
Laboratory, Portland. The picture above
shows workmen operating the drilling rig
at the corner of Eighth and Holly sts. this
morning.
anxious "not to see us slide
into another recession." He
said the deficit would
crease if this happened.
Public Hearings on
Planners' Agenda
Three public hearings, two
of them on zone change re
quests, are scheduled to be
held at a meeting of the Med
ford planning commission at
7:30 o'clock tonight.
The zone change requests
involve property at 16 South
Peach st. and for four lots in
the Queen Anne addition at
the southeast corner of East.
Jackson st. and Oregon Ter
race. Both requests seek zone
changes from single- and two
family to multiple family.
The third public hearing
will be on a request by Stand
ard Oil company for a vari
ance to the sign provisions in
limited commercial zones to
permit the construction of a
sign on the east side of Bid
die rd. opposite the inter
change for Interstate 5.
270 Pints of Blood
Donated in Valley
A total of 270 pints of blood
were donated in Medford and
Central Point this week dur
ing the visit of the Red Cross
Bloodmobile. This is 170 pints
below the quota for the visit.
Of the total, 225 pints were
donated in Medford and 45
pints in Central Point. An ad
ditional 32 persons were re
jected for medical reasons,
Red Cross officials noted.
Eighteen pints of blood
were donated in the name of
Mrs. E. W. Scggessen man,
Shady Cove, and 10 pints in
the name of J. L. McCollum,
Medford.
Railroad Strike
Talks Shifted
San Francisco - UPP - Fed
eral Mediator Frank O'Neill
today called a recess in nego
tiations between Southern Pa
cific Railroad and 11,000 rail
way clerks who have threat-
ened to strike in seven west-
displaced by automation be
assured of other jobs within
the company.
U.S. Units Sight
Venezuela Ship
Hijacked at Sea
Caracas, Venezuela fflPI) -
U.S. Navy units today sighted
a Venezuelan freighter hi
jacked by Communists in the
Caribbean. Venezuela alerted
warships to close in on the
freighter.
Informed sources here said
American flying boats sighted
the 3.126 - ton Anzoategui,
bound for Houston, Tex., at
the lime of its capture.
The ship was reported to
have been sighted on a line
about halfway between the
Venezuelan state of Falcon
and Puerto Rico. . . .
Venezuelan warships were
believed steaming out to inter
cept it. However, there was
the possibility that U.S. war
ships might do the job.
Pursuing 'Peaceful Ends'
The Anzoategui was hi
jacked by members of !he
antigovernment national lib
eration forces who claimed in
a radio message to be pursu
ing "peaceful political ends."
The message bore nine signa
tures of men in the raiding
party which seized the freight
er and said all aboard were
safe and unharmed, indicat
ing the hijacking was accom
plished by surprise and with
out violence.
The ship apparently was
seized early Wednesday morn
ing in the Caribbean Sea
about 380 miles north of
Venezuela. It left La Guaira
Harbor near Caracas Tuesday
on its way to Houston to pick
up industrial machinery.
Guilty Pleas Are
Entered by Woman
Fayc Laure Ellen Cranston,
53, of 3506 New Ray rd., Cen
tral Point, pleaded guilty in
Jackson county district court
this morning to charges of
failure to leave name and ad
dress at the scene of an acci
dent and driving while under
the influence of intoxicatin
liquor.
She was sentenced lo 10
days in the county jail for
leaving the scene of the acci
dent, and 30 days in the coun
ty jail and fined $500 on the
other charge.
She was arrested by Med
ford city police Tuesday after
her car was involved in an
accident on Highway 99 near
the Voorhies crossing.
CONTACT LOST
Cape Canaveral, Fla -UTI-The
United States installed
its new Syncorn communica
tions satellite in a difficult
"hanging" orbit above earth
today, but lost contact with it.
I
Tribune
Hatfield
Defends
Defense
Salem -(UPD- A strong de
fense of Oregon's Civil De
fense agency was made today
by Gov. Mark Hatfield, who
said "I'm very anxious that
the legislature restore the
budget."
The governor blamed "con
stant turmoil at the federal
level" for destroying confi
dence in civil defense.
Referring to a ways and
means subcommittee vote
Wednesday which threatened
lo eliminate the state's Civil
Defense agency, Hatfield said
"I think the action was un
wise." Failure Denied
He strongly denied that
the state CD organization had
failed to perform its duties.
"It has performed well," he
said.
He said criticism of the
agency because of shortcom
ings noted during the Colum
bus day storm were "not a
sufficient basis to destroy civ
il defense in this state."
He said the organization
did perform, although he ad-
I mitted it "functioned on a
limited basis."
"Nobody has claimed It was
perfect." ' :
He then pointed to difficul
ties faced by cities, the state
police and the National
Guard.! : ,
. "Nobody Is proposing "to
abolish the state police be
cause their communications
network did not function per
fectly during the storm."
$22,047 Budget Is
Favored by Planners
A proposed budget of $22,-
047 was approved by the
Jackson county planning com
mission lust evening. The
amount is an increase of $868
more than the present budget.
Increases proposed include
one step salary boosts for the
staff, and for telephone, sta
tionery and office supplies,
and to purchase books. De
creases were noted for travel
for staff and commission mem
bers, drafting supplies, and
printing.
Included in the budget is
$6,000, the amount budgeted
last year for the bureau of
municipal research study,
which was not spent this year.
Also budgeted but not spent
this year was $165 for aerial
photographs. The Item was
included in the proposed budg
et. Rusk Presses for
Troop Removal
Los Angeles -HJPD-Secretary
of State Dean Rusk Wednes
day night gave a full explana
tion of U. S. cold war tactics
and continued the call for
removal of all Soviet military
forces in Cuba.
He reiterated President
Kennedy's statement of last
week that "we are reasonably
certain that the offensive"
weapons deployed by Soviets
in Cuba have been removed.
But he admitted that the Unit
ed States cannot be certain
about this without on-the-spot
inspection.
The secretary spoke Wed
nesday night at a dinner at
the end of a daylong State
Department foreign policy
conference for interested citi
zens. About 2.400 persons at
tended the dinner and another
1.200 listened to various State
Departmert experts explain
foreign policy at a series of
briefings.
About a dozen persons, in
cluding four members of a
local chapter of the John
Birch society, picketed the
Palladium. There were no in
cidents. Portland - fl'Hr - Manager
Ford Montgomery said
Wednesday the new Hilton
Hotel in downtown Portland
would be in operation at least
by May 12.
57th Year Price 10 Cents
No. 282
Strongly
Civil
Agency
He also noted that many
commercial radio stations
were off the air.
When asked to comment on
reports the state may have
to pay $40,000 as a result of
the Camp Withycombe situa
tion, Hatfield said "I don't
intend to engage in political
charges on this. This is a legal
question."
He said anyone guilty of
misconduct should be punish
ed, and added, "This should
not become a political side
show for political purposes."
He said he had not seen
the latest agreement on the
proposed Dunes National
park, but said "I am hopeful
it will be a bill all can sup
port. I will do whatever I
can."
Measure Would
Put Tax-Exempt
Property on Rolls
Salem -IUP1I- A move to re
turn $226 million In tax-ex.
cmpt property to the tax rolls
was started today.
Rep. Richard Eymann (D-
Marcola) and 18 others Intro
duced a bill to put properties
such as those belonging to
fraternal organizations back
on the tax rolls at one-third
of true cash value.
The properties WOUld be
returned in stages, arriving at
one-third true cash value after
three years.
All exempt properties would
be n fleeted except private
schools and private libraries.
Eymann said the idea is to
have such properties share In
the cost of direct benefits such
as streets, police and fire pro
tection, but not tax them for
indirect benefits such as
schools.
He estimated a $3 million
local tax gain.
Homeowner Relief Asked
Meanwhile, Sen. Walter
Pearson (D-Portland) and oth
ers sponsored a bill for prop
erty tax relief for the home
owner. It would exempt from
taxation one-fourth of the
true cash value of a home.
The Senate received bills to
authorize $17 million in bonds
for Highway 20, provide equal
consideration for Portland in
distribution of motor vehicle
money, and transfer the state
educational television net
work from the Board of High
er Education to a seven mem
ber council of education, high
er education and public mem
bers, i
Annual Sessions
A resolution was turned
into the House to require an
nual sessions of the legislature
and limit them to 90 days.
Other House bills would re
vise land condemnation pro
cedures for telephone, tele
graph and electric corpora
tions, empower the Public
Welfare commission to pro
vide medical care for elderly
nursing home patients, and
require one voters' pamphlet
per household Instead of one
per voter.
Reps. Elmer McClure (D
Milwaukie) and James Red
den (D - Medford) announced
plans to sponsor a bill to let
Oregon go into the power
business.
WEATHER
tVonKl AST: Pirilv rloutJy o
mx.it with cnnnlftf rililr ntrht
and morning vilky f. In
crrnlni cloud! Friday with
(irrational Mint rain by rvr
nlnK Low tonight 10-13. High
Friday near ii.
Temp.
fllghrat Yfiterday it
I.oweit Thii Morning 30
I'rec. to 10 a.m. Today, Trace
Our Skies Tonight
nuntrt !day 5:42 p.m.
Mnnrltr tomorrow .... T:0t a.m.
Moonrlte tonight ....11.49 p.m.
I.at Quarter .... Feb. !
PRO.MINKNT STAR
ftirlui, In Ui (ouih-
eai p.m.
r.VFNINO PLANKTS
Jupiter, low In wett
at 11 p.m.
i now about at bright at
Drink.
Mar. In (he east . . T:1S p.m.
I -- - f
SURRENDER FORCED - A man demanding the impeach
ment of President Kennedy and his cabinet drove his car
onto the steps of the Justice Department in Washington
Wednesday and lay underneath for two hours before police
forced his surrender by firing tear gas shells at him. The
man, who identified himself as Nathan Wiskowsky, said he
had a bomb wired to the car, so police cleared the area near
the building. After the capture police said they found the
name "Arthur Wise" of Phoenix, Ariz., on the man's driver's
license. The "bomb" turned out to be a suitcase filled with
newspapers and wired to the bottom of the car. (UPD
Billboards
Highways
By County
Billboards to be visible
from Interstate 5 were dis -
cussed by the Jackson county
planning commission last
night. 1 board ot adjustment s recom- oi xne Lanaaian arguments.
The commission was consid-1 mendation that the four signs "The most important cause
ering variance requests by on Highway 99 not be per-. .of theJncreased imports is re
Mrs. Leona Robertson, Talent, milled since residents had op- fleeted in the much more pro
for signs at tlfo intersection f posed the request, and under nounced 'cost price squeeze'
of Highway 99 and Old High- the Interim zoning ordinance I In the United States then be-
npim vnnnH nrrn. flnrl hv
I wnv mm in inn Hniun I RifnL
(,0 standard Oil company to
erect a directional sign In me
north Central Point zoned
area.
Last August, Mrs. Robert
son whs granted permission
by the commission to allow
three signs to be ercctcd-two
on Highway 99 and one on
the old highway - not to ex
ceed 150 square feet, and the
enlargement of an existing
sign on Highway 99 to five
by seven feet.
Variance Requested
Last month, she requested
a variance to permit four
signs on Highway 99, two
double-faced and not to ex
ceed 300 square feet, and one
sign on the south side of the
Bridle Path Request
Submitted to Group
The Medford park and rec
reation commission last night
heard a request that bridle
trails be installed along the
banks of Bear creek through
the city.
The request came from a
representative of the Jackson
County Horsemen's associa
tion. He was informed that
a developmental plan is cur
rently being drawn , up for
Bear creek by the San Fran
cisco firm of Royston, Hana
moto, Moyes and Beck, and
that bridle paths are expected
to be included in the plan.
The group adopted a reso
lution instructing that in the
future the commission presi
dent be requested to attend
all city council meetings.
Kennedy Calls for
Domestic Corps
Washington -0JPII- President
Kennedy asked Congress to
day to set up a youth conser
vation corps with 15,000
members and create a nation
al service corps similar to the
Peace Corps operating
abroad.
In a special youth message
keyed to the theme of serving
young people better so "Ihey
will serve their nation better"
Kennedy also proposed an ex
pansion in the overseas Peace
Corps.
The proposed conservation
corps would provide work
and training for 15,000 youths
in national forests and recre
ation areas. It would resem
ble the Civilian Conservation
Corps of the 19:0s.
mv
1 " f ' I
-"Of" 'f
Along
Discussed
Planners
i old highway, which would be
1 single and not to exceed 500
I square feet
I The commission upheld the
I he DrnvpH for snrh ji vnriannt.
I ifjr ni ttrpH. finrnsnin miliar
( The commission continued
until iwarcn action on llie re-
quest for the sign south ofjslon said in its 104-page re-
tne old highway. It was ex-
plained thai the small piece
of properly Is a hill and com
missioners wanted to visit the
site before voting. It was ex
plained that this sign would
be visible from the freeway,
1,700 feet away.
Action It Continued
Also continued until March
by the commission was the
variance request by Standard
Oil company. The directional
sign, which has already been
erected, is approximately 11
by 14 feet in size and stands
7 feet above ground. It is
located on the cast side of
Interstate 5 and Is south of the
Peter Klewit Sons' company
gravel operation.
In other action, the board
of adjustment approved a
variance request by the Rog
ers Manufacturing company,
formerly Alpine Logs com
pany In Talent, to conduct an
industrial business of manu
facturing metal products,
hand trucks, at that location.
Navy Men, Grants Pass
Boys Are Apprehended
Stolen cars and attempts
to pass bad checks kept Ore
gon state police busy yester
day and early this morning.
As a result, three sailors,
who are away without leave
from the U.S. Naval Training
center, San Diego, are in the
Jackson county jail, and two
Grants Pass boys are in the
Jackson county detention
home.
Arrested Wednesday after
noon by state and Medford
city police were Dewey
Wayne Whitclcy, Madera,
Calif; Richard Dean Robert
son, 868 Gilman rd., Medford,
and James Russell Boylcs, To
peka, Kan.
The three men admitted to
officers they are AWOL and
took the vehicle they were
driving in San Diego, Calif.
They also said they wrote sev
eral fictitious checks in Cali
fornia and one in Medford.
Attempt lo Cath Checks
Wednesday morning, Med
ford police were notified by
two grocery stores in the area
that suspicious men attempt
ed to cash checks. Store per
sonnel gave police the name
of one of the men and a de
scription of the other as well
as a description of the vehicle
they were driving, including
the license number.
Commission Fails
To Recommend
Tariff Increase
Kennedy's Hands
Tied on Issue
Washington - (DPI - The
Tariff Commission today re
jected a U.S. lumber industry
plea for restrictions on Can
ada's more than $260 million
a year softwood lumber sales
in the United States.
In a report to President
Kennedy following a seven
month study of conditions In
the softwood lumber industry,
the commission said the rapid
ly increasing imports of Ca
nadian lumber were not
caused in major part by past
tariff concessions.
Handt Tied
The commission's decision
against recommending tariff
boosts or quotas was unani
mous. It tied Kennedy's hands
on the lumber issue. Without
a recommendation for action,
he is unable to .apply any re
strictions. The U.S. lumber industry
had asked for tariff boosts
from the present maximum of
$1 to $6 per thousand board
feet plus a quota of 6.5 per
cent of U.S. consumption,
which would have slashed im
ports of Canadian lumber by
nearly one third.
The U.S. industry said em
ployment in the lumber in
dustry and in industries de
pendent upon it had dropped
by .117,000 because of soft
wood lumber imports in 1961.
It had said unemployment
would increase as imports in
creased. Domestic Conditions
The Canadian industry, ar
guing against restrictions dur
ing a two-week hearing last
ucioner, had said that the
U.S. industry's problems were
not aue to Canadian lumber
but rather to domestic rrtm.
petitlve conditions and to
U.S. laws which hobbled do-
mesttc lumber in some mar-
Kets,-
'"e TarW Commission ap-
1 peared to go along with many
I btvctrji (fie rimnu nnrj) nr Mim.
rising price ot timber and
purcnasea jogs," tne commis-
port.
It said there was a limited
commercial availability of
softwood timber in the Unit
ed States, resulting in "In
tense competition among the
buyers of such timber."
In contrast, it said, there
was an increasing availablity
of newly opened virgin tim
ber land in Canada, mostly in
eastern British Columbia, and
a less Intense competition
among Canadian lumber mills
for logs.
Tax. Collections
Increase 8.1 Per Cent
Salem (UPD Tax commis
sion collections for the past
seven months are up 8.1 per
cent over the same period a
year ago.
Collections for the seven
month period ending Jan, 31
totaled $59.3 million, com
pared with $54.8 million
year ago.'
An Oregon state police of
ficer spotted the vehicle later
on South Riverside ave. The
Navy men are being ques
tioned by FBI agents regard
ing the federal violation of
transporting a stolen car
across state lines.
Runaway Boys
The other incident checked
by state police and Gold Hill
police concerned two runa
way boys from Grants Pass,
ages 12 and 14, The boys, ar
rested this morning In Gold
Hill, told police they took a
car in Grants Pass yesterday
afternoon and while in the vi
cinity of Kirtland rd. north
of Central Point, the car was
stuck In the mud and aban
doned. The boys told officers
they then took a car from the
Double Dee lumber company,
owned by Norman Butts, 2569
Sunnyview dr. The car was
later left in Gold Hill.
While Gold Hill police
searched for the boys during
the night one slept in a field
and the other in a barn. They
were spotted on a street in
Gold Hill this morning, offi
cers said, and brought to
Medford. Charges have al
ready been filed against the
boys In Josephine county, it
was reported.
I ber and the evpn mnn raniWli .
i"- 'i -, i,-ite r.m ,rt .w .t ..