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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Jan. 1, 1961)
STATE 'Ms' midc mom roe GEM iiimi Farm Bank Activities Recognized Gordon W. Barrie, assistant manaeer of the Klamath Falls Branch. United States National Bank, and County Key Banker of the Oregon Bankers Association for Klamath County, has just been informed that the outstand ing service which Oregon banks have given the state's farmers, both through regular banking service and through special activ- lties in the agricultural field, has received special recognition from the American Bankers Associa tion. This agricultural award is pre sented each year to the state bankers associations of those stales whose banks have been of notable service to agriculture during the preceding year. This is the 31st consecutive year that Oregon's banks have received the award, indicating the continuous nature of the bank program in agriculture. Oregon is the only slate in the nation to qualify for this award for so many consecu tive years. The awards are presented to recognize the wide range of proj ects which bankers carry on as a means of bringing greater un derstanding and cooperation be tween the farm and financial communities. Included are such activities as cooperation with the extension service and other offi cials of the state agricultural col lege sponsoring educational pro grams on farm financial matters, support qf farm youth groups such as Future Farmers of Amer ica and 4-H clubs, promotion of soil conservation and land man agement, and sponsorship of banker-farmer meetings to dis cuss mutual problems. This recognition is based not only on Oregon banks' leadership in serving the credit needs of ag riculture, but also because of their activities in behalf of edu cational work in the wise use of credit; in promoting improved farm practices: and cooperating with farm, livestock, and com modity organizations. The work is planned and di rected by the Agriculture and Forestry Committee of the Ore gon Bankers Association with the assistance of the County Key Bankers. It is Die work of these groups in Oregon which has brought this award to the slate's banks. In addition to numerous awards, prizes, and contributions made by individual Oregon banks, the Ore gon Bankers Association appropri ated, for the fiscal year ending June 30, 1961, $4,500 to tlie 4-H Club and $2,865 to the Future Farmers of America. The asso ciation is pleased to thus mani fest in this tangible way its sup port of these two outstanding ag ricultural youth organizations. Public Lands Bids Asked Scaled bids for the leasing of S6 tracts of public lands in the Southern portion of Lease Area "G" (Southwest Sump) for agri cultural and grazing purposes will be received from the general public until 10 a.m. January 24, 1961, at the Bureau of Reclama tion office in Klamath Falls. Information on bidding proced ure and leasing conditions may be obtained from the bureau's of fice at the corner of Washburn Way and Joe Wright Road, or from bulletins posted at all post offices in the Klamath Basin area. Increase In Traffic Volume Seen For '61 By GN Chief By JOHN M. BUDD President Great Northern Railway Considering the very optimistic predictions for business generally at the beginning of 1960, results of Great Northern operations in the past year were disappointing. The railway experienced a de clining physical volume of traffic since spring, ana one unporiam result of this condition was an increase in the unit cost of oper ation. Great Northern will have a low er net income than in 1959 a reflection of less traffic and the tough cost-price squeeze, al though the impact of the latter condition was lessened by tight control of operating expenses. We are both optimistic and ap prehensive about -the future of transportation. On the favorable .IH for 1961. we believe the rail- WayS IH OUr region w' aj'v.J v .ni.,,i.u,,ui, vv,m..ii'va,l-u.--iuii Ml .iir imivtllf 9 IVMUtll modest Increase in traffic volume.lues to needlessly cost this coun- ized traffic control mileage. Ad Also heartening is the fact thatltry millions of dollars every ycar.jditional CTC mileage in I960 presidential commission will be-1 Those who think all is well injwas in Minnesota and Montana. ....11 ,.. n (1947.1949100) CONSUMER PRICES T"j TJO - SERVICES , . 1 'W? ALL ITEMS 130 """7"""" 110 COMMODITIES (LESS FOOD) El I 100 iiiiliimliinilnitiltiiiitiuiiliiinliini 1957 1938 PRICES ARE UP Consumer prices, on the average, were higher in 1960 than in any other postwar year almost 30 per cent up from 1947-49 period. Services advanced most; durable commodity prices sloped off slightly from last year. PRICES PAID, PRICES 300 (1910-1914100) 280 260 240 220 1957 195S 1959 1960 FARMERS' COST GAP The price stretch on the nation's farmers increased further in i960. Using 1910-14 as index of 100, prices paid rose to 299; prices received slipped to nt information is from the Department of Agriculture. 10 1949 '50 '51 '52 '53 HOW Wc SAVED IT M 20- f- (ESTIMATED)-, 10 -X- 7 . .ihYrn 3 INTO THE MATTRESS Personal savings in the U.S. climbed from 8.5 billion dollars in 1949 to 29.2 billion in the third quarter of 1960. Dips represent recession periods. Last quarter, 1960, will probably Peek At Stock Market Shows Much Optimism By HENRY J. BKC11TOLD UPI Financial Editor flow ruitrv iui-11 a proics- sionni pee ai me siock marisci through a crystal ball reveals general optimism for the coming year. But. while the Wall Street forecasts look for an upswing in stock prices in 1961 they do not expect a runaway market. Walston and Co. and Spear and Staff, Inc. look for the Dow Jones industrial average to reach a high of close to 700 in 1961, an ad vance of about 14 per cent from present levels and about 20 per cent from the October, I960, lows. Edmund W. Tabell of Walston reasoned that the market is too high on the fundamentals of earn ings and dividends to expect an other sharp rise on top of the 300 per cent rise from 11149 to 1959. gin in early January a layed study toward revision of ob-j solete, costly work rules of the entire railway industry. (Thomas A. Jerrow, Great Northern's oper- ations vice president, is a rail- way member of the 15-man com- mission, appointed by President orations with its physical plant Eisenhower.) jand equipment in excellent con- In addition, the trend toward, dition. the result of the railway's consolidations indicates the mination of railway manage-1 ments to, improve the efficiency, services and financial health ofjeompany acquired approximately! our industry tlie basis lor the proposed merger of Great North crn, Northern Pacilic, the Bur-j lington and the Spokane, Port - land & Seattle railways. It is expected that the consolidation plan will be submitted to the interstate Commerce Commis sion very early in 1961. On the negative side, the lack rail, placing of 568.000 cubic yardsiwill he available in front of the of a modern, realistic nationals new ballast and a 260-mile building for 20 aulos. 'lui lfU nn ll-ancnnW-iln,,, i-nnlm. 1960 RECEIVED BY FARMERS 1959 n PRICES PAID (Incl. Interest, Wages, Taxes) PRICES RECEIVED fall. Data: Commerce Dept. iHc did note, however, that many individual issues today are under j Sidney B. Lurie of Joscphthal and Co. said the market faces the same internal price depros sanls that existed in 1960. in cluding the absence. of an infla tionary stampede to equities and the new competition from senior securities. 1 Above all, Lurie declared, the stock buying public has become a nation of "economic hypochon driacs." New concepts of valua tion have come into being, he ex plained, with everyone wanting the stocks with a story. No one wants the stock market's prob lem children, and the companies which lack claim tn special growth are penalized by inatten tion. n '54 '55 '56 '57 '58 '59 '60 long-dc-ltransportation are being deceived, The public is not getting its money's worth, and Ihe ability of our total transport plant to meet a national emergency is be- ing seriously endangered. Great Northern begins 1961 op- detcr-jcontinuing program of improving track, rolling stock, motive pow er and operating facilities. The 1.100 new freight-carrying cars in 1960. This equipment included 750 boxcars and 350 units for special itransport requirements. In addi- lion, heavy repairs were made on 400 older freight cars. Track improvements in 1960 eluded installation of approxi- imalcly 78 miles of new, heavy nl I l.n ...1. . Double Previous Growth Rate Predicted In Nonaqricultural Employment Fields Oregon's economy is off to a good start toward achieving the dynamic growth forecast for the 1960s, the Oregon Department of Planning and Development said in a report to Gov. Mark O. Hat field summarizing the past year s activities. The department, noting that nonagricultural employment in creased bv 12 per cent in the pasl decade, said gains of 23.4 ler cent or nearly double the previous growth rate can be lorecast lor the next 10 years on the basis of trends now under way in the economy. Even that rule can be increased by programs instituted to influ-: once both the rate and nature of economic expansion in the state, Ihe department said. A total of 93 new manufactur ing plants and plant expansions were recorded in the state din ing 1960, creating a total of 5,700 new jobs. This will result in about twice that number of jobs in service industries. Some of this gain was obscured during the final months of the year by effects on the state's big lumber and plywood Industry of decline in home building nation ally, and by (lie general slow- down in the nation's growth rate. Industrial expansion during the year included 25 plants by new Oregon companies, 55 new plants and expansions by existing Ore gon firms, and 13 new plants by outside companies. In addition, the department has active "pros pect files" on 140 companies which are interested in locating in Oregon. I PACE ft C HERALD AND $40-Bitton Upturn In Economy Forecast By Business Magazine NEW YORK - The annual 18- month forecast of Fortune maga zine's widely quoted Business Roundup says that the U.S. econ omy is already heading into a broad advance that will produce sizable boom within a years lime. Fortune's economists ex pect that in the next 18 months the gross national product will rise eight per cent from its re cent rale of $505 billion to $545 billion. Fortune's forecast has good news for all sectors of business. The advance df the economy should begin to reduce unemploy ment by this spring. Thereafter, strange as it may seem now, there may be a question of wheth er the nation's manpower capaci ty will grow enough by 1962-63 to warrant a big advance in capi tal formation." The coming 1961 upturn, says Fortune, traces basically back to the success of tlie nation's experi ment in economic stabilization during the pasl year. Moreover, the economy has about completed its 1960 readjustment, which was Inrpelv rnnfinpH tn invpntnrips. Here are the 10 major factors on wnicn fortune oasea us lore- cast: GE Planning New Center PORTLAND General Elec tric Company today announced it is establishing a new service cen ter here Jan. 3 for its houseware and radio products in a 4.000 square foot leased building at 2137 E. Burnsidc SU Manager of the center, second one to be set up in the North- west, will be James H. Martin, who has moved here from Utica. N.Y., with his family and liven at 14.13 N.E. Portland Boulevard. Martin said the center will em plov two other men and probably will have two more by I-eb. 1. Fa- cilities have been designed to serve 23 employes, he said. The "service center" will pro- vide local repair and parts serv-, ice In metropolitan Portland foriMamath rails, he became head such General Electric products as irons, toasters, mixers, coffee makers, heaters, blankets, heating pads.'namcd general agent in Tacoma vacuum i-ln-jnni-c f!ur unil in 1UQ huranifi pmiAr.il mtMit polishers, clocks, radios, phono-: (graphs and others. It will serve in-(consumers, dealers and distribute ors. Martin said off stivet parking The company's only other Norlh-itation west center is in Seattle, and its other West Coast centers are in the Wcstlake District of Daly, population surge of 18 per cent or make postponed repairs on the And yet on the face of the massive ing readjustment" or "an appar San Francisco and Los Angeles. iCity. iior Ihe same period. lold one, to generally spend moncy'cconomic indicators, 1960 was aicnt recession." The report continued "We are not in the business of signing up new smokestacks for Oregon. Our function is to con ccive and carry out programs which will result in expansion of all phases of our economy, in cluding agriculture, tourism, rec reations, service industries and manufacturing industries." Some of the programs institut ed to inlluence both the nature and rate of the state's economic growth were lis'ed as follows: A broad program of "invest ment opportunity" studies point ing out the economics and feasi bility of both market and re source-related opportunities for. business and industry ventures in Oregon. Two such studies have been completed, six are under way and 35 proposed studies are being evaluated. Expansion of promotional activ ities to include economic develop ment tours, a motion picture, new publications and cooperation with Oregon companies in national ad vertising programs. Creation of the Space Age In dustrial Park at Boardman, and good progress" toward locat ing a space technology- industry on tlie site. Expansion of research and sci ence-based activity to generate new ideas, new products and new industries. Strengthening and expansion of programs for servicing and assist ing Oregon communities. Two field representatives have been added, a manual on community development has been issued, in- Business By Floyd NEWS, Klamath Falls, Ore. Defense spending will rise at rate of $2.5 billion a year. The budget will be unbalanced, with total federal spending rising at the rate of $6 billion or more a year. Capital spending wilt start to in BERNARD P. COSTELLO COStdlO GctS New U.P. Post Staff changes including the cre ation of a new executive post in the Northern California hcadquar ters of Union Pacific Railroad were announced Thursday by Mad ison H. Fowler, traffic manager. Effective Jan. 1, Bernard P. Costcllo, general freight and pas senger agent, w ill assume the new position of assistant traffic man ager. It was disclosed also Raymond G. Owen, assistant freight traffic manager with more than 46 years of Union Pacific Service, will retire on Dec. 31. i Joining r owlcr s staff as gen- oral freight and passenger agent will be Joseph A. Golobick. With the railroad since 1926, he was general agent in Oakland when, three years ago, he was trans ferred to the company's Omaha headquarters. An Iowa native. Costcllo began UoL his railroad career in 1936 in Ihe , Reno office of U.P. Following transfers to Boise. Twin Falls andltotal Oregon population grown to of the service bureau in Omaha in 1944. Three years later he was freight department, in the Sanibutcher - baker - candlestick mak - Francisco office. He assumed his present position in 1953. Costcllo is a member of the Olympic Club. San Francisco Commercial Club, Pacific Traf-j Ific Association and the Transpor - Hub of San Francisco. He lues at 97 Glcnrose Avenue in Idustrial site surveys have been completed for GO communities. and assistance given to many communities on special program and projects. "New industries do not locate in a state; they lo tale in a community," the de partment noted. Emphasis on assisting existing Oregon industry lo grow and pros per. Such assistance has included tax matters, raw materials, mar- jkets, new products, relocation and expansion problems, Four major planning projects have been undertaken Broad support and participation in these programs have been achieved on a statewide basis, thi department noted. Industrial de velopment corporations have been established in 21 communities More than 100 citizens from all segments of the economy are working at the state level on ad visory and special committees for transportation, business climate, new industries, and science, en gineering and new technologies. The department said close work ing relationships have been estab lished with chambers of com merce. colleges and universities, area development departments of i Oregon companies, and with de partments of the state govern mcnt. "Programs instituted in the past year have generated a tremen dous amount of interest and ac tivity , in economic development throughout the state," the depart ment said. "Oregon has gained the momentum necessary to achieve a dynamic economy.' Review L Wynne Sunday, January 1, 1961 crease by midyear; by spring of 1962 a new record capital-spend ing rale of $51 billion a year is likely. Inventory liquidation Is slowing, and soon business will be build ing up its stock on hand. Construction of housing will turn up; housing starts, now at an annual rate of more than 1,200,000, will, by the spring of 1962, be approaching 1,400,000. Prices and wages will both go up, but slowly about two per cent a year for the general price level, perhaps three per cent a year for factory wages. Income and savings will increase; income in current dol lars will rise nine per cent over the next 18 months, J dim Sd ulbsi will resume their normal Tnai raie oi about 7.4 per cent of spendable i income by late '61. Consumer spending will in crease by four per cent a year. Credit, considerably eased from a year ago, will continue so. w ith interest rates remaining fairly steady. Exports, presently high, may decline as Europe's boom flat tens, but other factors will im prove the U.S. balance of pay menls. NAM Sees Future Pinch PORTLAND (Special) Will Oregon's business britches be big enough in the current decade? thatiThe National Association of Man ufacturers points to a possible future pinch despite the current slack. x Oregon's business base Isn't des tined to expand apace with a goods-and-serviccs hungry popu- lation, an NAM study indicates.! Some 8.000 new businesses will SnT'Cr'SS, m-Lfl, -i11 h .liohllv lvW Ihnl lWeo increase, when the totai:Pcrts think of ,he llfte ofet home appliances such as freez- i itpw from 4S400 to wono itne econom.v. Pnt and future, ers, ranges, refrigerators and tel- . The 65.000 firms will be sup- plying goods and services to a ? 153 non inr luriinp 6 000 milit.-irvlnf hiMiness lhal hopan last mid. personnel, the NAM estimates, At the current decade s end 676.300 Oregon household units Reasons for such a belief are:nual rate of $54 billion. Forecasts. !uilt Ht-wiiHimt ntvin Iht ctatn'cUII The iMncimiAr u iil lnnon hi are that it will co to $55 billion in the Sanibutcher-baker-candlestick er set. Many of the same firms also will be suppliers for ncr-jthe sons and businesses in other states and foreign countries. This circumstance, the NAM savs. will, accentuate the fact that a business growth of 14 per cent isn't keeping pace with a AVERAGE WEEKLY EARNINGS ' tTpWri (U MUhs Nr Wick) DURABLE GOODS I INDUSTRIES f A W J AU MANUFACTURING 10mJm . f INDUSTRIES ssSJ NONDURABLE GOODS ga INDUSTRIES 70 I i ti 1 1 ii 1 1 tit 1 1 1 it 1 1 tiT I .tt t.y.rlflf. ttttf I & WW T4T I I I I957 195S AMERICA'S PAY LINE After dropping sharply from an early year high, the average weekly earnings of the nation's industrial production workers recovered to just over 90 dollars at the close of 1960. Data: Department of Labor. , PRIVATE HOUSING STARTS ,'5'8'800 1,277,000 J9 (ESTIMATED! 1 eSti m HOUSING IS DOWN Although the nation's population pressed upward in 1960 by more than three million, private housing starts fell off from 1959 by about 230,000 .units. Builders blamed tight money. Source: Dept of Commerce. TOTAL INDUSTRIAL PRODUCTION 110 100 MN.1957 7 STEEL STRIKE y I l l i f l i I i i I l i i ill 1 1 i i I i n l l 1 i l ill I I i I i-i I i n i i 90 80 1957 1958 THE WHEELS TURNED The nation's total industrial pro duction in 1960 was down from a January high. Recovery from the 1958 slump generally continued, though. Informa tion is from Governors of the Federal Reserve System. Survey Shows Business To Advance During 1961 Despite reduced optimism, a Oregon area expressed the lowest majority of western business lead- ers expect activity during the first quarter of the new year to lnnal or OVf-norl Ih. mmrarAI m 'ji I p-'" v. vvu,6 survey by Prudential Insurance Company. Sixty-four per cent of Pruden tial's 1.000-member Western Busi ness Forecast panel predict that business in the approaching quar ter will equal or improve upon the same 1960 period. Well over public utilities, where over three a third anticipate gains of one quarters of the members expect to 10 per cent, while almost one out of 10 look for advances of 11 to 40 per cent. In a comparison with the final quarter of 1960, approximately six out of 10 panelists believe that business will continue at the same pace or advance during the first part of 1961 Businessmen in the Washington-! Good Times Expected Back Toward End Of 1961 Period By L, A. BROPHV " AP General Business Editor NEW YORK (API-Things will get worse before they get better, for ,e arc ed to be' - . . Thal ab0ut SUmS mey ngure n mis way: A continuation for the first few months of 1961 of the slow erosion jvcar. then a pickup increasing to'Scst Prop under the economy. AsjWIlioa. compared to $215.4 billion flho end of the vear. Ithe year ended, it was at an an-i'01- 1959- Retail and foreign trade purse strings: 2 the govern ment will send more money into! economic bloodstream. In manv respects it will be up ho the individual to mail 1M1 mak-'nurse strincs: 2 the eovern-ithe better year. jsteel operating rate at only;P'n on business. Were we in a If he decide" to hnv thjt new! around half of capacity as the :n cession? car. to get his wife liie home ap-iycar ended, union officials esti-; pliancc she covets, to buy a houselmatcd 150.000 workers were idle. 1960 1959 1960 degree of optimism among the geographical groupings. The per centage expecting first quarter E expecting 'business to equal or better the in same period in 1960 ran 27 points below the high mark of 76 per cent posted by Northern California-Hawaii panelists. The highest confidence among the industry groupings was ex pressed by transportation and their business in the upcoming 1959 quarter to equal or improve ovcriTuesdaVt Klamath County was one the comparable period of 1960. of sjx in Qrecon which has ex- West In Review, Prudential's index of business activity issued with the forecast, indicates that business activity during the third in the county through Novem quarter of 1960 showed a slightlber 30 were $658,034 and the coun- decline of 0.3 basis points from the second quarter. that has been laid away, the econ omy will get a stimulation it bad ly needs. Surveys have indicated the con- grease in new home buying and;n higher than I960. ...,.. mere seems nine oouoi mat; federal purchases of goods and . Services Will EO UP. It IS the OIB- first three months of 1961 and'coin showed profits not keeping undoubtedly higher if present ditions become worse. Distressing pockets of bad times a'rtnttfd the nation in 1960. With the Phone Firm Planning Big Outlay Pacific Telephone Northwest has programmed a $23.9 million out lay to expand and improve tele phone service in Oregon during 1961, r. M. .Mitchell, the com pany's vice president and general manager, announced recently. "This expenditure of almost $24 million is certainly the best evi dence of our belief in the essen tial soundness of Oregon's econ omy and in the future growth prospects of the state," Mitchell said. Reporting on I960, Mitchell said the number of telephones served by his company in the state in creased by 22,942 to a total of 576,169. The number of long dis tance calls went up about 6.6 per cent during the year, he added. In Klamath Falls 341 phones were added to the total in serv ice during the year, according to Manager A. B. Dickcrman. There are now 15.696 phones in the Klamath Falls exchange. Looking ahead, Mitchell listed bringing Direct Distance Dialing to some 160.000 Portland phones with ATlantic, CApitol and BE1 mont exchanges in May, 1961, a one of the company's biggest pro jects during the coming year. DDD will be extended to Ihe rest of Portland and nearby suburban communities in 1962. Completion of manual to dial conversions at Florence and at Arlington in 1961 will bring dial service to 99 per cent of the company's telephones in Oregon, he said. Paper Users Eye Sawdust Sawdusl from Douglas fir may become a new raw material for production of corrugated paper used in manufacture of boxboards, according to R. M. Samuels, in charge of studies on pulp and paper at the Oregon Forest Re search Center, Corvallis. An ex panding boxboard industry in the Pacific Northwest could provide a market for this wood residue. Tests at the research center have indicated that paper made from Douglas fir sawdust does not have great strength, but is crush-resistant. Paper for corru gated parts of boxboards need not have conventional properties of strength, but must be crush resistant, stated Samuels. Alder presently is being used in manufacture of corrugated paper. Utilization of sawdust in making this paper would produce a high er return than mills now re ceive selling sawdust as fuel. In addition, other mills might find a market for sawdust, Samuels said. Other effects of sawdust on qual ity of paper are being investigat ed by the wood scientists in this study. Research in pulp and paper at the research center is supported by a tax on timber harvested in Oregon. Exceed Quota According to word received ceeded its Savings Bond sales quota for this year. Sales of E and H Savings Bonds ty's sales quota for the full year came lo a total of $630,000. record year. The gross national product (the total value of all goods and serv ices) was estimated at an annual range of $503 billion and that was The automobile industry made slightly more than six million pas senger cars, second only to 1955, the best year in history. Retail sales were estimated by the Federal Reserve Board at $220 comoinea ume. but set record dollar vol the other side of the con-lpace because of higher operating costs Al' of these things led to eon- fU5'n as to just what label to Some called it "mild rece jsion." Other economists settled for "roll-
