f
L'I'I Financial Editor
NEW VOHK tL'PH The se
curities industry paid close and
sometimes irritable attention to
the progress in 19ta o( a Secur
ities and Exchange Commission
investigation of its operation and
speculated on what legislative
recommendations might come out
of it in 13.
The American Stock Exchange
starling point in 1961 lor an in
vestigation which later broadened
into an industry probe, turned
bright new face to the investing
public. The Amex, working with
a special committee headed by
Gustave Levy, New York attorney
and mindful of the courses sug
gested by veteran exchange mem
ber Edwin Posner, pushed through
a series of sweeping constitutional
changes approved by the mem
bership in June.
Near the years end. SEC
Chairman William L. Carv said
NEW TOGGERY Gus Vlahos, former owner-operator
of the Unique Market and the Cascade Hotel is new
owner-manager of the Tog Shop, located at 708 Main
Streef. The store formerly was Sam -Neslin's Menswear.
Vlahos reopened the store shortly before Christmas after
buying the stock and furnishings at a bankruptcy sale.
Tax Account
Numbers Told
V' 1 &A
I" I V 7 I
GEORGE VLAHOS
AL BROCK
Partners Open Tog Shop,
Newest Menswear Store
The Tog Shop. 70fl Main Street,
is the name selected for the new
est men's store of the area by
Gus Vlahos and Al Brock, part
ners in the new venture.
The new store will hold a grand
opening beginning Thursday, Jan.
10. to clear out the former stock
which was a part of Sam Nes
lin's Menswear.
Brock has been in the clothing
Construction
Sees Record
Work Year
business locally for the past 10 to
12 years. Vlahos came to Klam
ath Falls in 1935 from San Fran
cisco1. He opened the Unique Mar
ket in 1941, transferring his inter
ests In the Cascade Hotel in 1960
and then in early December pur
chasing the present stock and
lixtures at a bankruptcy sale.
George Vlahos, 28, son of one
of the partners will be assistant
manager. He has been engaged in
men's clothing work for the past
several years locally.
Gus Vlahos left Saturday for
buying trips to San Francisco and
to Seattle, selecting complete new
lock for the new venture.
The Tog Shop w ill carry only na
tionallv advertised brands and
be open 9 a m. to 5:30 p m
Sweeping Changes Brought About In Stock
Industry As Result Of SEC Probe Series
publicly that the SEC believed in
the principle of self-regulation.
but cited the conditions criticized
at the Amex in 11 as a "dra
matic example of the need for ov
crsight. Once the matter wasl
fully appreciated by the Amex
community, he said, responsible
members assumed leadership and
reorganized the exchange.
Grti New Leader
Going into 19t3, the Amex had
a new, young president, Ldwm
D. Etherington, who had been
special counsel to the Levy com
mittee. Its listing requirements
had been tightened, as had it:
rules governing qualifications and
activities of specialists, the floor
A. G. Erickson. District Direc
tor of Internal Revenue for Ore
gon, has issued the following state
ment regarding lax account num
bers.
Public Law No. 87-397 approved
Oct. 5. requires that banks.
savings and loan associations.
credit unions, and other payers of
interest and dividends obtain the
tax account numbers of their
shareholders or depositors and use
them on information documents
submitted to the Internal Revenue
Service.
For those individuals having So
cial Security numbers the Social
Security number is prescribed as
the account number to be includ
ed on the tax and information
returns filed with the service. If
a person does not have a Social
Security number, a number will
be assigned upon receipt of an
application. These applications
may be obtained from the tax
payer's nearest Internal Revenue
or Social Security office, or by
mail by addressing their requests
to the District Director of Internal
Revenue. 830 N.E. Holladay, Port-!
land 12. Ore.
The Internal Revenue Service,
in addition to more than 90 mil
lion tax returns filed each year,
receives approximately 340 million
separate statements, payments
and information returns. The task
of associating these documents to
name and address is tremendous
and often leads to many poten
tial errors requiring contact with
the taxpayers.
The use of an identification
number for tax administration
purposes will be beneficial to the
taxpaying public as well as the
Internal Revenue Service. It will
help assure all taxpayers that
their w ithheld taxes, deposits, and
payments are credited to their
proKT account.
workers who are assigned certain
individual stocks or groups in'
which they are entrusted with
maintaining an orderly market.
The Amex likewise had tack
led its own problem of associate
memberships. It announced de
listing of a number of slocks
which did not meet one or an
other of the new qualifications. It
broadened the membership of its
board of governors to include
more out of town representation.
Most of the steps taken at the
Amex were those which had been
urged in an SEC staff report is
sued shortly after the start of the
year.
Yet there were some in the in
dustry who said thev thought the
SEC should soft-pedal its investi
gative activities. They said SEC
comments from time to time
shook investor confidence in the
securities industry,
But other quarters recalled that
Cary has insisted that his group
was not merely out to make head
lines, but to work as quietly
iwssiblc in areas where it felt
changes should be made.
Probe Mining Exchange
Near the year's end, SEC ex
aminers plunged into an invest!
gation of the San Francisco Min
ing Exchange, where it had
charged infractions of standards
covering trading.
Industry Finds Big Gap
In Depreciation Picture
FINANCIAL GOSSIP
Ily JESSE BOGl'K
UPI Financial Editor
NEW YORK (UPD There was
a $35 billion gap between what
industry in the United States was
allowed for depreciation on its
equipment and what should have
been allocated for this cost in a
14-year postwar period, an Amer
ican Economic Foundation study
said today.
The report came at a time
when businessmen have become
perhaps more acutely conscious
of depreciation allowances he
cause of recent government
moves to allow acceleration of
depreciation, and a tax credit on
new tool investment.
"Although steps in the right di
rection, these measures offer no
substantial lasting relief," said
the foundation's study.
The AEF's staff study was built
around statistics developed by
Raymond W. Goldsmith in "The
National Wealth of the United
States in the Post War Period,"
published by the National Bureau
of Economic Research. His fig
ures covered the years 1945-58 inclusive.
Depreciation is the word used
for the loss of value suffered by
tangible assets machinery and
equipment of a manufacturing
ompany for example through
the passage of time, ordinary
wear and tear, and other factors.
Ranch Sells
For $90,000
One of the largest ranch sales
in recent months was announced
bv George and Dorothea McAnul
ty of Klamath Falls. Purchase
price was $90,000.
The land, 9G8 acres of cultivated
and range properties included 4Rl
acres of alfalfa, the 1982 crops of
96 acres of oats and 117 acres
of meadow, is located on Whiskey
Creek at the Sprague River Junc
tion, northeast of Klamath Falls
The place, owned for 17 years
by Mr. and Mrs. McAnulty, has
supported a herd of Hereford cat
tle, and contained Bug Butte and
Schonchin Cemcterv.
New owners are Melville and
Peggy Johns of Santa Rosa. Calif.
who plan to live on the land at the
end of two years. A brother. Ark
Johns, is now managing the ranch.
Melville Johns is a college profes
sor. Mrs. McAnulty owns and oper
ates a bonk and novelty store
at 621 Klamath Avenue. McAnul
ty retired from active ranching
because of ill health Mr. and Mrs.
McAnulty have bought a home in
Klamath Falls.
Utilities
Move Ahead
NEW YORK (UP1 - During
12, a year of sharp economic
contrasts, the electric utility in
dustry continued its growth pat
tern setting new records ir
output, capability and sales and
made preparations for the years
ahead.
Preliminary estimates by the
Edison Electric Institute indicate
output will have climbed to 859.4
billion kilowatt-hours, an increase
of 59.6 billion kilowatt-hours over
1961s 799.8 billion kilowatt hours.
Estimated margin reserves.
generating capability reserved to
meet a sharp increase in demand
an emergency, rose to 40.7
million kilowatts or 25.7 per cent
over the annual peak demand of
158 3 million kilowatts.
The industry's investment In
plant and equipment rose to $51
billion in 1962 as investor-owned
companies spent an estimated
$3 2 billion, i'he total net invest
mcnt by the industry represents
about 12 per cent of that for
American business as a whole.
Nuclear energy is adding to the
power supplies of more and more
American communities each year
and the significance of the atom's
part in electric power generation
was underscored by Consolidated
Edison Co. of New York's an
nouncement nf plans for a $1'
million nuclear plant in New York
Cilv.
Construction, Oregon's largest
industry, is expected to reach a
new high dollar volume of work
during 1963, industry spokesmen
predicted today. '
Robert A. Heintz. president of
the Portland chapter, Associated
General Contractors, emphasized
however, that tlie estimates were
based on assumptions that there
would be no major work stop
pages, national emergencies or in
ternational crises.
Heintz said a survey completed
by the AGC, covering the entire
s'.aie of Oregon and 5'j counties
of southwest Washington, indicat
ed that dollar volume of all types
of construction during the com
ing year may reach or exceed
the $700,000,000 mark.
The estimated percentage of in
crease over 1962, Heintz noted.
could vary from 6 to 10 per cent
Not all of this would be attributed
to new work, however. The indus
try looks for about a 3 per cent
increase in the per unit cost due
to increased wages and increased
material costs.
"Anv inflationary trend in wage
or material costs." he said, "wmild
he immediately reflected in bid
ding prices."
On a national basis, the AGC
estimated that new construction
will amount to $63 billion and
maintenance repair work U $21 .5
billion for a grand total of $84 5
hiltion. It places the increase in
new construction at 3 7 per cent
over 12.
Heintz said the AGC estimates
were based on a number of fav
orable factors including:
Hi The need for almost every
kind of a facility remains large
There are st ill big backlogs of
construction needs in communitv
schools, libraries
rh,irrh hospitals, roads and
ttreets water and sewer systems
shopping centers and recreational
facilities as well as nousing
J: The federal-aid highway pro
gram is proceeding on schedule
which means not only a larger
lohiinf of road building each year
but also a substantial stimulus to
other types of construction.
rt i A recent upturn has taken
place in the rported plans of
businessmen for expenditures for
new plants and equipment.
WORKTIME UP
I lb. ROUND STEAK
26 minutts
(-fl irinutt)
DOCTOR'S HOUSE CALL
3 hr., 23 min.
(-1-40 minutes)
1 lb. 9 WOMAN'S 2-PIECE SUIT
CANNED SALMON 24 hrs, 3 mm.
19 minutts (-f 4 br., 34 min.)
(fl minute)
6 minutei
(1 minutt)
1 lb. CHEESE
19 mmuttt
(2 minutei)
WORKTIME DOWN
TELEVISION SET
89 hr., 58 min.
(7 hr., 38 min.)
WORKTIME UNCHANGED
20 minLs tj,t t
(-2 minutei) 1 lb. CHICKEN NUS1! SllPii f
WlW ( Ynutet ) AW JjAllJ
MgUaJS n CAN OF TOMATOES 1 lb. SUGAR
gttWay ) 4 minutes 3 minutes
1 Ib. COFFEE Qv v,
j J
I it. MILK I J ik uEAt) J b POTATOES
6 minutes T T 5 minutes 2 minutei
(1 n nute) L ,M A,
""-Sl' MAN'S SUIT I MX
(2 hr., t mm.) I
MAN'S HAIRCUT
45 minutei
1 dot. EGGS fr
IS minutei
rrvKzi '
at Business Rev
iew
By Floyd L. Wynne
HERALD AND NEWS, Klamath Falls. Ore.
Sunday, January 6, 1963
PAGE I
Firm Offers
Record Plan
A new service to provide the
average family with an annual
record of drug purchases for
lederal income tax purposes is1
being started here by Broderick'si
Pharmacy, 2212 South Sixth Street.
Frank Broderick. owner of the
store, said the service will be pro-1
vided without charge to custo
mers.
the system, called DrugTax
uses data processing equipment to
keep a record of drug store pur
chases that may be deductible in
computing federal income tax re
turns.
Broderick said each customer
will be assigned a code number
in most cases the family tele
phone number.
Each purchase will be recorded
i "memory" tapes, which later
will be fed into computing equip
ment. At the end of the year.
DrugTax, Inc. will mail the custo
mer a record of the total amount
which may be deductible in com
puting the tax return.
T(
ji , G ;, - fc
' '"" ",.
-s.
v
- J
W' '4f
ROBERT G. CHIDESTER
R. Chidester
Opens Legaj
Office Here
Home after a three-year tour
of active duty with the Judge Ad
vocate General's Corps, U.S.
Army, is Robert G. Chidester.
Chidester is now associated with
Richard J. Smith in the general
practice of law, with offices locat
ed in the First Federal Savings I
and Loan Building.
While serving with the U.S.
Army, Chidester attained the rank
of captain, and acted as chief,
legal assistance and military af
fairs branches, Office of the Staff
Judge Advocate, Fort Huachuca,
Ariz. In addition he- served as
prosecuting attorney and defense
attorney in trials by special and
general courts-martial. He also
acted as prosecuting attorney in
trials before the U.S. Commis
sioner.
Chidester Is admitted to prac-l
tice before the Supreme Court of
the State of Oregon and the Unit
ed States Court of Military Ap
peals. He is a member of the1
Oregon Slate Bar, American Bar
Association, Delta TheLa Phi Le
gal Fraternity, and BPOE, 1247.
PIONEER AWARD Monro Karlerman, left, who com
pleted 21 years of service with Pacific Northwest Ball
Telephone Co, on Jan. 2, was honored with a pin and
certificate naming him as a "Telephone Pioneer of Ameri
ca." Ha came fo Klamath Falls in October from Portland
to assume the position of plant manager. Mrs. Irana
Buckley, supervisor, presented tha award at a luncheon
given at Molatore's Thursday by members of tha Pionear
Council.
L. Kellison
Attends
Annual Meet
Lou Kellison. manager of the
Klamath Falls lumber and build
ing yards of J. W. Copeland
yards, was among the 67 yard
managers who attended the 15th
annual meeting Jan. 3, 4 and S
in the Sheraton-Portland Hotel in
Portland,
Included in the three-day ses
sion were managers from each of
the Copeland yards in Oregon,
Washington, California, Nevada
and Idaho.
Sessions included warehousing,
credit, sales, yard insurance and
plywood. A special feature of the
meeting was a supplier's exhibit
vhieh was opened to the genccal
public Jan. 3. On display was
the latest in lumber and build
ing supplies.
Afnong the conversion speakers
were Mel Harum, Los Angeles,
vice president of Allied-Concord
Financial Corporation, and Dr.
J. D. Matarazzo, chairman of
medical psychology. University of
Oregon Medical School. Harum
spoke on "Consumer Financing"
and Matarazzo's topic was "Hu
man Relations.
Honored at a Saturday night
banquet were Percy Blackstone,
Corvallis, Ore., who is retiring
after working 22 years for the
company.
J. W. Copeland is one of the
largest organizations of its kind
in the West. The firm retails more
than 50 million board feet of lum
ber in the five states. The first
yard was opened in Portland 50
years ago last Nov. 12. The com
pany headquarters are In Port
land.
BENEFITS UP
CHICAGO (UPD - In the first
nine months of 3962, insurance
companies paid an average ol
$10.7 million a day in health in
surance benefits, compared to $9.5
million a day last year, the health
insurance institute said.
Great Northern Annual Report
Indicates 1962 Income Gain
First Federal
Notes Gains
First Federal Savings and
Loan Association made excellent
progress in 1962, according to
George W. Mclntyre, president.
Gains were reported in all de
partments. Total assets at the
end of the year were $27,530,692,
a net gain of over six per cent of
the previous year. Savings grew,
which Is an indication of the
economic stability of the commu
nity, from $23,250,187 to $24,61?,
696. This is a healthy growth for
a normal year.
Reserves, which are the num
ber one indicator of the strength
of a financial institution, total
$2,591,000 or better than 10 per
cent to savings.
Dividends paid to savers for
the year 1962 totaled $912,448.37,
new record for any one year
period.
GOOD, BAD AND INDIFFERENT As far as purchas
inq power goes, tha average American worker is batter
off in some cases than ha was in I9S7, a little worse in
others and about the same in still others. Chart above
shows tha number of minutes or hours that must b
worked to earn tha money to buy certain items and tha
increase or decrease in time, if any, since 1957. Figures
Bl rt.niNG DEPARTMENT
Monthly Report December, 1562
Klamath Falls
REMODEL, ADDITION'S tc ALTERATIONS RESIDENCES
Owner Address Val.
Kuhlman Insulstlnn .V7 E. Main 2.7IM
Kuhlman Insulation 707 Ropeway Drive 1,360
O E. Thompson 112 l.lnmln ,VK)
NEW GARAt.ES
W. O. Ely H Lincoln I.MW
REMODEL. ADDITIONS A ALTERATIONS
RlSfNESS - SON RESIDENT
Harry Molator ml Klamath Ave. l.tm
Julian Errlrs S. 6th 4V Plum 400
MISCELLANEOUS
W. G. Ely Demolish Building I4 Lincoln
Total Valuation: M.tttl.MI
Total valuation for IKS: !.ns.KU.n
Total fees collected 1962: 4.SM..V)
Total condemnation 1962: 2fl
Buildings lorn down without
condemnation: 3.
(nndemnrd buildings moved ml
nt eitv limits; 1
are from tha Bureau of Labor Statistics and National
Industries Conference Board and are based on average
hourly earnings of production workers in manufacturing.
Chart does not take into account tha relative importance
of tha different items or changes in the quality of goods
since 1957.
By JOHN M. RUDD
President, Great Northern
Railway
Results of Great Northern's one
hundredth year of operation will
be somewhat better than in 1961.
While final results of 1962 opera
tions will not he known until late
lanuary, present indications arc
that net income will he above
last year's $3.07 per share.
Great Northern's freight volume
in was slightly above tne
1IKS1 level and passenger busi-
nevs was tlie highest since 1953
the imparl of the Seattle1
World's Fair. Al the close of the
fair in late October GN's pas
scngcr revenue was nearly 24 per
cent ahead of the comparable pe
riod in 1961. and was expected lo
be about 20 per cent higher at
(he end of 1962.
Tlie 1962 grain crop along Great
Northern was the best in many
years, an extremely encouraging
recovery from the effects of the
previous year's drouth on grain
production. A substantial part of
the past year's grain crop is in
storage for movement In 1963.
Moisture conditions generally in
GN's grain-growing territory now
are better than at this time
year ago.
It is now expected lhat GN's
traffic volume will be slightly
higher next year in line with the
anticipated increase in general
business activity In 1963. GN's
management shares the industry
wide feeling that substantial prog
ress will be made next year in
the long, uphill battle by the na-
ion's railways for equal compel!
ive opportunity with other modes
of transportation.
The new Congress will consider
corrective legislation generated
by President Kennedy's prece
dent making message last April!
on transportation, in which he
cited inequities and inconsistcn
cies in public policy on national
transport, and recommended Con
gressional correction of this cha
otic situation. A stall in this di
rection was made In I9ii2. and ef
fective headway is hoped for in
the forthcoming session of Con
gress.
COMMERCIAL
Spoctolistnf in M typo of printtd fofden, circular, lctttr
heed i, chocki, irattmcnti, map-out for mi, plaitic binding t,
tc.
Guide Printing
12th & Klomath
Inc.
TU 4-5373
GN's physical plant continues
lo be in excellent condition. The
company's 1962 track and equip-)
mcnt Improvement program was
on a more moderate scale than
those of recent years. A substan
tially larger capital improvement
program has been authorized for
this year.
A 373-mile pipeline for transport
of North Dakota crude oil was
built and opened In 1962 by the
Portal Pipeline Company, in
which Great Northern shares
ownership with the Hunt Oil
Company of Dallas and North
western Refining Company of St
Paul Park, Minn. The pipeline s
mam trunk extends from Lignite.
N.D., northwest of Minot, tol
Clcarbrook, Minn. The 16-inch
Portal line connects in Clearbrook
with lines serving rellneries in
the Twin Cities, Duluth-Superior
and the Toronto-Buffalo area.
m
GUARANTEED
TRUCK
SERVICE
AND REPAIRS
Wa'ra Spaciolists en
4 wheel drive Willys
'Jeep' vehicles, but we
ra (quipped to serv
ice oil mokat.
JOE FISHER
Lincoln, Mercury, Cemet
Willys 'Jeep' vehicles
(77 U. 7rk 'n. 4-1 1 4
laaretaty PhaMi
Charlie Rae, 1-4MI
NOW AVAILABLE
to Oregon residents only
COMMONWEALTH SECURED
Q BONDS
For people who wish to up grade Invest
ment earning! Commonwealth Secured
6 Bonds arc tha answer. Now avail
able In amount of $100 or multiple
thereof. Interest payable monthly, quar
terly, semi-annually or annually.
Mall Coupon or
Phone Medford 773-2788
For Complete Information
fo 'MMONWEALTH
4iiumd-iNC. 7732788
711 E. Main St., Medford, Oregon
(Homt Office, TOO Equitlbla 1160.. Portland 4, Orvgen)
Pleas Sand Complete Information to:
Harnberger
Joins Firm
The appointment of Stan A.
Harnsberger, a native and life
long resident here as an agent
with the Klamath Falls office of
the Prudential Insurance Co.'s Eu
gene district agency was an
nounced today by Gilbert G. Tip
ton, manager.
Harnsberger and his wife, Car
ol, have two children, Roberta
and Shelly. Their address is Route
1 Box 881.
WFW.
a Wards Special
bervice for . . .
BUSINESS FIRMS
INSTITUTIONS
GOVT AGENCIES
i j
ADDRESS-
CITY
PHONE
NAME
-ZONE STATE-
WARDS OFFERS ,
EVERYTHING IT .'
SELLS AT FULL
COMMERCIAL
DISCOUNTS
Words fliont purchoslng powtr
means lower prices at com
mercial discounts for all quail
tud purchasers. Choose from
thousands of quolity Itemr. . .
backed by notion-wid delivery
and service. Call Words first!
phone today
TU 4-3188
CONTRACT AND
COMMERCIAL SALES
DEPT.