California Faces Hole In 19
As
7
ost Populous' State
Mixed Emotions Greet Role
HORIZONS XP1"-
January 1963
HERALD AND NEWS, Klamath Kails, Ore.
Gov. Rockefeller
Eyes Presidency
By JACK V. FOX
United Press International
NEW YORK (UPI) - There is
nothing coy about Nelson Rocke
feller when people ask him about
the presidency and 1964.
And a lot of them are asking
him about it.
The New York governor is
aware that he is well in the fore-
NELSON ROCKEFELLER
front of Republican possibilities
at this time. He acknowledges
without any phoney-modest dis
claimers that this is so.
The fact is that a great many
people, including President Ken
ncdy, seem to believe that it is
pretty close to a cinch that
Rockefeller will be leading the
GOP ticket in the next election
There is one notable exception:
Nelson Rockefeller.
The 54 - year - old multi
millionaire has been cautioning
newsmen, politicians and friends
for a long time that they make
one big mistake about him.
"They just won't accept what
I say at face value," he has said
"But the truth is that I mean
just what I say. And eventually
people will realize it ... "
Things To Do
And what he is trying to get
ANNOUNCES PROGRAM
WASHINGTON (UPH The
U.S. Chamber of Commerce
Thursday announced a 10-point la
bor legislation program which in
eluded a campaign for right-to-work
laws and opposition to a
shorter work week.
President Ladd Plumlcy said
the chamber would support the
right of states to enact laws
against compulsory unionism.
"Our freedoms are diminished
when a man is forced to join a
union to earn a living," Plumley
said. The shorter work week, he
said, would weaken the economy
by curtailing production at a time
when increased production was
needed.
Homeless
By GARY HAMPTON
Initcd Press International
For 14 years, since they fled
their homes in what is now Is
rael, more than one million Arabs
have lived as refucecs with no
place to go often without food or
LEARNING TRADE Boys in workshop at Ein es Sultan Camp school near Jeri.
cho, Israel, work to learn the woodworking trade. This is one of the carpentry work
shops at the handicraft center sponsored by the UNRWA for Palestine refugees. This
organisation is devoted to helping the "wandering Arabs" people made homeless
when the Jews took over Israel 14 years ego. UPI Telephoto
across these days is that he isl
not a candidate for the Republi
can presidential nomination in
1984. He may well be. But he
isn't yet.
A favorite word in the Rocke
feller vocabulary with regard to
the Republican nomination
"mobility."
A second is "homework."
Rockefeller's position on the
presidency can be stated author
itatively as this:
In the next few months, he and
his aides are going to do a lot
of "homework" about the forth
coming presidential election.
One of the principal questions
they are going to seek an answer
for is whether Kennedy can be
beaten in 1964 and under what
conditions. A lot depends on what
the Republican party does in the
way of organizing and revitalizing
itself on a national scale.
A lot depends, too, on how the
affairs of the world and the na
tion turn in that period.
Not until that homework h
done, not until he satisfies him
self that he has a good fighting
chance to defeat Kennedy, will
Rockefeller declare himself,
Until that time, the watchword
is "mobility."
Could Have Won
Rockefeller believes firmly that
Richard Nixon could have beaten
Kennedy in I960 had not Nixon
gone into the Chicago convention
with the nomination all tied up
in ribbons.
Nixon froze out all competition
including Rockefeller's. The!
governor made a show of being
available at Chicago, but no one
took him seriously and the inter
est around the nation was never
aroused as was, for example, by
Kennedy's maneuvering with Lyn
don Johnson. -
.So Rocky as he is nowi
tagged is definitely out to avoid
making the same mistake with
regard to his possible candidacy
He disagrees with those of his
boosters who inveigh against the
"conservatives in the Republi
can party building up Arizona's
Sen. Barry Goldwatcr to "stop
Rockefeller."
He doesn't like to see the GOP
run down the chances of its two
new stars Pennsylvania's Wil
liam Scranton and Michigan's
George Romney on the grounds:
they haven't the time to build the
"image" required for a presiden
tial candidate.
Rockefeller feels the Republican
party must have lively competi
tion. It must particularly have
the give and take of debate on
the key issues of the day.
Sends Out Word
At tlie present time, the Rocke
feller camp is sending out word
across the nation not to start any
Rocky-for-Prcsident boomlcts.
Rockefeller takes the position
that no one is authorized to act
at this time as his reprcscnta-j
live or cent. When and if the oc
casion comes, he will let them
know.
Ones Given Hope
proper housing, mostly without
work. And worst of all, until re
cently, virtually without hope.
Among the displaced, a whole
new generation has begun life
knowing nothing else. About half
of the refugees are under 17 years
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GOLDEN GATE BRIDGE This is an aerial view of San
Francisco's famed Golden Gate Bridge, which celebrated
on May 27, 1 962, fhe 25th anniversary of day first traffic
Stock Slide Tops
NEW YORK UPI - The past
year will long be remembered as
the second most infamous in
stock market history.
The approximately $80 billion
lost in the first half of the year
and the $48 billion recovered be
tween July and early December
eclipsed even the dollar fluctua
tions of the 1929 crash and the
great 1930 bear market recovery.
But this was because the market
today is worth many times as
much.
The year began with the aver
ages just under the all-time peaks
established in December 1961.
Unaccountably, many thought,
the market slipped sharply from
January through March. Most an-
lysts insisted it was only an
overdue correction of the spec
ulative excesses of late 1961 and
confided that an even greater
buying opportunity was at hand
By mid-May, when the selling
Slanted Vell Sparks Oil
AUSTIN, Tex. UFI Opera
tors on a Shell Oil Co. well in
the rich East Texas field were
astonished one day in April. 1961.
to find tlieir well suddenly produc
ing mud instead of oil.
Tie discovery that their well
had been pierced by another
driller trying to slant his well
into a producing pool was the
first drop in a gusher of scandal
that has flowed through several of
the state's oil fields. Tie investi
gation into the oil piracy is far
from complete.
The "Hot Oil Scandal of 1962"
quickly involved state and feder
al investigators in a widening
probe that indicates hundreds of
millions of dollars worth of oil
has been produced illegally in
Texas through slanted-well drill
ing.
Texas Railroad Commission
members, who control oil produc
tion in Texas, emphasize the
of age. Even those who are now
in their later teens or early 20's
have little or no memory of the
homes in which they were born
The only thing that has made
life bearable or even possible for
these homeless ones has been the
snowball reached glacial propor
tions and well after the adminis
trative had checked an attempt
by the steel industry to raise its
price levels, the market letters be
came universally bearish. By that
time it was all over except for
the wild, two-day 24 million share
climax of May 28-29.
False Boom
It became increasingly obvious
during the avalanche that the
1962 business "boom" had proved
no more than "high level econ
omic stagnation" and "profitless.
prosperity."
Business profits dropped from
the moderate level of late 1961
and fears grew, on the basis of
administration statements, that
the post-war inflationary period
was over and bearish deflationary
tendencies might soon assert
themselves.
In early July the market turned
higher soon after the president
amount of "hot oil" is but a frac-ithe
tion of total Texas production.
Some Operators Indicted
But the illegal directional drill-
;ri,.,i -,,. i, i i,.,,.
necome one oi me top issues 10
face the 58th legislature when It
convenes in January. Some com
mission employes have resigned
or been fired, scores of persons
have been sued, many slant-hole
operators have been indicted.
The investigation remained
largely with the Railroad Com
mission until April, 1962, when
the commission asked the Attor
ney General's office to direct the
investigation. Tie first investiga
tive step after that was declara
tion of a receivership for a drill
ing firm whose books Atty. Gen.
Will Wilson wanted to check.
In subsequent months, some op
erators restrained the commis
sion's agents from running slant
well surveys on their leases, so
By United Nations Group
care and feeding provided them
by the United Nations Relief and
Works Acency for Palestine ref
ugees l UNRWA I It has fed and
housed them, established schools
and hospitals for them, found
work for some, tried to make
some kind of life for all.
Extends Program
The L'.N. General As-,crrhly
voted Dec. 20 1 to extend the life
of UNRWA until June 30. 1965.
The United States resolution, ap
proved 100-2, also called on the
Palestine Conciliation Committee
to continue seeking peace between
Israel and the Arab countries,
which would be an important ele
ment in any final solution of the
refugees' plight.
By the end of 1962 the cost of
this gigantic mercy operation will
have totalled, by United Nations
fipures, about $455 0X0.000. The
United States has contributed
roughly 65 per cent ot this, or
$2'i2 million Britain's contribu
tion has been nearly $75 million.
With the exception of Yugo
slavia tlie Communist states have
contributed nothing.
The host Arab states Jordan,
liebanon. Syria and the United
Arab Republic have contrib
uted approximately $11,500,000 in
a and some $45 million in such
direct services as providing wa
ter and land, and police, educa
rolled across it. California
Saturday of its ascendancy
the Union.
Financial
said that the nation needed
broad personal and corporate tax
cuts. It had staged roughly a 33
per cent recovery by late August
with the market letters saying
the late summer rally may well
be extended."
At that point the market
dropped and was within 10 per
cent of its May lows by late Oc
tober although business was still
on its "high plateau."
The tip sheets were chanting
"we are witnessing either a ser
ious test of the year's lows or a
resumption of the bear market be
gun early this year" and it was
at just that time the prices sky
rocketed.
The Cuban situation turned into
potentially the most explosive
crisis since World War H. The
administration courageously stood
its ground, the communists wilted
and the market vaulted, not for
just a day but for six frantic
Scandal
commission turned to Wilson
I0r advice.
ch"cl Opnaion
Investigators then began the
pattern that would characterize
the nrnhp nhfainint? order to
kccp operator5 from plugging or
ruining their wells to prevent sur
veys, then the surveys themselves
followed by penalty suits or crim
inal indictments.
Assistant attorneys general,
commission workers, undercover
men with the Department of Pub
lic Safety, Texas Rangers and lo
cal enforcement men combined
in the biggest oil investigation of
the stale's history. By May, more
than 100 slanted holes had been
discovered. Now that total has
doubled.
Demand for legislation to cor
rect the situation makes the oil
scandal one of the top issues of
the 58th Legislature. In addition,
the commission itself has changed
its rules to require more close
check on drilling methods.
tional and medical services. The
balance of roughly $32 million has
come from about 40 other regu
larly contributing U.N. member
countries
Future 1'nrcrtaln
What is to become of these ref
ugees? This is the problem with which
the United Nations has been grap
pling since 1948 against the un
ending and also virtually in
soluble background of bitter Israeli-Arab
strife.
The one thing the U.N. has
done is improve considerably the
condition of the refugees. They
are fed and housed, they are pro
vided clothing. There are schools,
hospitals and medical centers,
workshops and playgrounds
The United Nations sees some
hope for turning the explosive
problem of the Arab refugees into
a spearhead ol progress through
out tlie Middle East, by giving
them training and schooling.
In human terms the education
and health programs are turning
many disinherited "unemploy
able" peasants Into cadres of
skilled workers who gradually are
being welcomed into factories and
businesses as the Middle East
edges slowly forward into Indus
trialized 20th century life.
Under UNRWA care the refu
gees have, by and large, become
7
began a four-day observance
as the most populous state in
UPI Telephoto
News
weeks before leveling off in early
December.
Accumulate Cash
Tie factors behind the early
winter rally were still present at
year's end although they seem
well discounted. In addition to re
lief from fear of nuclear war and
a surge in national pride and con
fidence, there is a new bull mar
ket signal by the well-worn Dow
Theory, the evidence of technical
strength in the largest short in
terest position in stock exchange
history, and the fact that most in
stitutions have accumulated s
large amount of cash for rein
vestment.
Hopes for a lax cut in 1963
have been well fed and the re
fueling of bullish inflationary fears
has come at a time when It is
expected the federal deficit will
be $7.8 billion during the current
fiscal year. Also business indexes
remain around tlieir peaks and
the latest earnings and dividends
are substantially higher than in
1961.
Even assuming the lax cut gets
through and earnings match
liopcs, the investor cannot assume
that the bull and not the bear will
dominate the 1963 stock market
until he asks himself if the other
causes of last year's market spill
have been removed.
Searching Question
Have the differences between
the administration and business
and over prices, mergers and
dealings in securities markets
been overcome?
What wili be Uie course of jus
tice department suits against
merger proposals?
Some questions what will be the
outcome of the Securities & Ex
change Commission's long investi
gation of the marketplace.
When the study is completed
early this year and recommenda
tions are made, will subsequent
legislation set up more stringent
rules for securities dealings and
build stronger government control
over still another aspect of
American business life?
more healthy than the average
citizen in the host countries. They
live longer, and their birth rate
has increased. This has continu
ally added 30,000 a year to the
numbers of unemployed.
Start School Program
In I960 UNRWA launched a
three-year program to provide at
many of the young as possible
with an education and job train
ing Under its program UNRWA has
established 11 higher training in
stitutions and subsidized several
others. By mid-1963 these institu
tions are scheduled to graduate
some 2.2110 skilled workers annual
ly. UNRWA runs or subsidizes
3bout 400 general schools attend
ed by more than 180,000 refugee
children.
UNRWA officials say the train
ing programs are highly success
ful. They report that 90 per cent
of graduates from UNRWA train
ing renters find work im
mediately. Only 4.400 out of the 30.0110 who
become adults each year benefit
from the program. But UNRWA
believes it is on the right track
and, until real peace comes to
the Middle East, the people being
salvaged from the enormous ref
ugee pool will help to build a bet
ter life for future generations.
By PETER J. HAYES
SAN FRANCISCO (UPH With
mixed feelings, California began
today a four-day observance of
its ascendancy as the most pop
ulous state in the Union.
The governor called it an ep
ochal event. A chamber of com
merce president cautioned that
solemn responsibilities went with
such a distinction. A university
professor said: "1 wish the state
wasn't getting so damn crowded."
"California First Days" were
proclaimed by Gov. Edmund G.
Brown last November after his
sharp-pencil statisticians reported
the state had edged past New
ork with some 17.3 million pop
ulation.
Tie U.S. Census Bureau stuck
with its prediction this wouldn't
happen until sometime in 1963.
But Brown went ahead w ith plans
for a gala celebration, urging all
businesses and communities to dc
dare this Monday a holiday.
But San Francisco's Mayor
George Christopher, for one, de
clared, "Include us out." He said
it would cost the city's taxpayers!
$320,000 in holiday overtime pay
for police, firemen and other
workers who can't be excused.
Cause For Mourning
Aside from such pecuniary con
siderations, Brown's proclamation
was greeted sadly in some quar
ters. The San Francisco Chronicle
editorialized:
"The occasion clearly calls for1
mourning, for a gathering up of
all the inner resources to with
stand the historic buffeting under
which the state's once-magnificent
supply of elbow-room and breath
ing space has vanished, as have
also the public beaches, the or
chards of the countryside, the
tree flow of traffic, free and
plentiful curbstone parking, ready
access to theaters, restaurants
and night-spots, an amplitude of
classrooms and teachers, a suffi-1
ciency of mental hospitals and
prisons, tolerable taxes and an
even chance to go somewhere
without involvement in a traffic
jam and a parking hunt."
Explains Growth
It was a sunny December aft
ernoon and Prof. William A
Spurr gazed out the window of1
his S'.j.iford University office at
a fruitladcn orange tree.
When I worked in New York
City," he mused, "1 was too far
from the window to look out. Not!
Shopping Center Trend In 1962
Gives Retail Trade Facelifting
NEW YORK (UPI) Tie 10-
year migration of retail trade to
the suburbs and countryside ac
celerated in 1962 and now is giv
ing the country its greatest face
lifting of the century.
Retailing had a good year for
the most part. Sales of all stores
gained about 7 per cent over 1961
and, by the time the last Christ
mas presents have been ex
changed, tlie year's volume will
have topped $232 billion, accord
ing to Standard & Poor's.
I -.'able goods rolled up the big
gest gains perhaps 10 per cent
with general merchandise sales
up about 5 per cent.
The gains in sales were not gen
erally translated into better pro
fits for merchants, though. In
tense competition and rising costs
prevented that.
But the big story in retailing is
the creation of 600 new suburban
and rural shopping centers and a
1 y"r.
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HOT MEAL FOR HOMELESS Children receive e hot midday meal at the Debayeh
Camp, Lebanon, food station. For 14 years, since they fled their homes in what Is new
the young Israeli nation, more than a million Arabs have lived as refugees with no
place to go. The only thing that has made life beareble or even possible for these
homeless ones has been the care and feeding provided them by the United Nations
Relief and Works Agency for Palestine Relief. UPI Telephoto
Ithat there were any orange trees
to see."
Since he moved west in 1946,
Spurr has become an expert in
California's population growth.
"Our growth is nothing new,"
he said. "It's part of the long
range westward movement of
populations, beginning in Asia,
then to Europe, across the At
lantic to our East Coast, the Mid
west and finally to the vast
reaches of the West.
.Most ot lliese migrants are
young married people with chil
dren, and as a result California's
population is younger than the
United States' as a wlwle."
Statisticians calculated that
California's population grows by
1,627 every day. What gives state
planners the shivers is the pros
pect of what it will be like in
the 1980s when the population will
be doubled if the present trend
continues.
Outlines Challenges
In a report entitled "California
Going, Going ..." a non-profit
educational institution called Cat
I;
LEADING INDUSTRY A young lady poses with grapes
ready to be crushed in the California wine harvest.
The vineyards, more than 100 years old, are a leading,
multi-million-dollar industry in the San Luis Obispo area.
UPI Telephoto
40 per cent rise in sales of dis
count stores, virtually all of them
in the suburbs and countryside.
New Stores Downtown
As recently as 1952, about 60
per cent all new stores were op
ened downtown whether on
Fifth Avenue in New York or on
Main street in Podunk.
Today almost 70 per cent of all
new stores open In the suburbs or
on tlie highways. Rural and sub
urban shopping centers grossed
$55 billion during the year al
most 25 per cent of the retail dol
lar. Tie number of centers has
grown to a fantastic 7,200.
The most dramatic aspect of
the face-lifting retailing changes
have given the landscape is the
enclosed mall shopping center.
About 20 of these have been built.
One at Moorestown, N, J., and
one at Huntington, I I., cost $20
million each. They are com-1
1
mmi eWI4 , Wfc
ifornia Tomorrow outlined the
challenges.
"We must create five million
new jobs. We must invest some
$170 billion in manufacturing, for
repair, replacement, and new
plants. W'e must spend $10.5 bil
lion on 12,400 miles of controlled
access highways.
"Wo must build about four mil
lion new housing units. We
must provide 160,000 elementary
and high school classrooms at a
total cost of more than $6.5 bil
lion. We must build 100,000 new
camping units costing about $100
million. We must construct water
projects that will store about 16
million acre-feet of water, at a
cost of approximately $5 billion."
"I'd love to lock the gates and
keep California a pastoral para
disc," said Professor Spurr. "But
the population growth is com
pletely inevitable and a funda
mental part of tile world popula
tion explosion. We're just going
to have to face up to the prob
lems that go with it."
pletcly air-conditioned and beauti
fully landscaped and often include
restaurants, theaters and other
recreations. The whole family
can park the car and shop and
amuse themselves for hours with
out being exposed to the weather
or traffic.
Naturally, this huge shift of re
tailing to the suburbs and coun
tryside creates problems : of
"wasteland" and shrinking tax
revenues in the downtown areas.
Big Ones Slay
Yet there were no big down
town department store closings in
the country during the year al
though little department stores
closed very week. But the big
department store companies
clearly have adjusted to the new
facts of life. They now draw far
more sales from their new sub
urban branches than from the
central store downtown.
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