lelllet-Sttattt
Fair
Tuesday
Weather Report, Page 9A
mm.
IAN E COUNTY'S HOME NEWSPAPER.
Eugene, Oregon, Monday, January 21, 1963
Second Class Postage
Paid at Eugne, Oregon
Price, 5 Cents
i sum, v vr, ino. yu
T fO Y.i:'X1tl PAGES
p
Ifi
Reveals
re Details
K Boosts On-Site Test Ban Hopes
F 1
lax
Plan
i.'r. t .
By STERLING F. GREEN
01, tha Associated Press ! 1
.'on j.ess Monday
i "the best way
prospective
break all
11
(C . W1H ton Pmidint Kennedy toll
tv, til I xfxe;, despite a huge deficit.
iPIWjp V .ate to increase revenues. ' i . ' ',
iMM-io'l di-votcd the annual economic n-eorc, last of his
Arfld it K messages to the new Cougresa to allaying the
fcssWTAfl'oyfl legislators who called hiv fisca! pr.gram the
Hit-.'iSU'Ti' I -i'vljug and biggest tax cut in hl-rti ry- ."incredible,"
kWy' J. I and "toe big." In the procos? hi revealed a few
(ill I i Ii A oi the tax program he wlV i-nd to Congress
f,. ;Stx:ftnlry should slide into rti.-eision his year through
itti ttjjeduce taxes, the President siuf .ht
4ifHdi(l .".delidt would worsen and ;ieiha?i
.wtlilijr.pt! li'ljfi'Cit records."
q$ tf fpes 'Moderate Expansion'
tife('ifit,ilr tit. Kennedy predicted, the planned $13.5 billion
fl d Ij will at"d $8.5 billion . year r.o 'ami lies' income,
u.icuci!!'-'' irf consumer item-, by $16 billion, inciease profits,
W(i't;f,tiV..!(j business investment. He prin-jsed;
"LmiI1 'm ff'tMnMii' returns to full employ lent, the budget
rra'r yf'''f I constructive balance." j ,
i ra",:Li t lng tax reduction as insurance igaii st recession
lifilt I i i ! ot predict a slump. On the cod r'jrv, he forecast
1 J .f'fMl t an ion" in 19S3 to a record 15'B7 lillion of na
' '!i'5,WVit:uP Ver cent from last. yen i
' Wv'' '' reported, the recovery from tt e depth of reces-
&&j(.'tJ-:Aitiitbi a:o has halted the postwar tt nd cf ever-more-UtVfeft
rescssious. But the gains are "iiiislratingly" short
U the stridn i-tiiat are needed, he said. Tho ii essatfe went on:
"I do not I'xpect a fifth postwar reeeusfot- to iaterrupt our
I i'ressln 16113. : '
I "It is not die fear of recession but thr. fai of J'.ve years of
-essivii unemployment, unused capacity a- J ila;k profits
f i th"i oonsiiufnt hobbling of our gr-.tii rate that con
, lutes the urgent case for tax reduction an .'; refo -m.
". . . l Is frustrating indeed to iee the u:'tmplnyment rate
land still even though the output ot goods nd so -vices rises.
; "Yet past experience tells us that only s -sUinci major in
cases in production can reemploy the jo Jess uembers of
day's labor force, create job opportunities for the 2 million
lung men and women entering the labor.? larket each year,
1 produce new jobs as fast as technologic; ! change destroys
li ones. . . j. A 'i
liU any nirrowing of the production (if ) until tax reduc-
Irii' takes bold .. . if - ,. ' '.
"Tiie main block to full employment :s am urtreausucany
wy'burden M taxat'.on. The time has com -to renove it."
Tfe S13.5il. billion -!n proposed tax cuti flrtl:r offset by
5 bUlion oi: revenue-raising revisions, wo-ild go into partial
ect iin July; 1, Kennedy said. ! , . '. . '
Ind'ividual income-tax liaDllitics woujo je rea icea uy o
ion a yeai', most cf: which "would translate immediately
v" throufih lower 1 x. will holding on
ydiecks. Mi:re cuts would come in 1964 a ad 19 , to a total
well over 1(8 billion
By JOHN M. HIGHTOWER
Of the AsfocUled Prett
WASHINGTON The United States, Britain and the Soviet
Union appeared Monday to be closer to agreement on a nu
clear weapons test ban than they have been at any time in
almost two years. .
Soviet Premier Khrushchev has removed a major barrier to
serious negotiation by telling President Kennedy that he would
accept two or three on-site inspections a year in the Soviet
Union as part of a system to prevent cheating.
Reaction in the Senate, where a test ban pact would have
to be approved, was heavily cautious. But the general feeling
was that in accepting the principle of on-site inspection, Khru
shchev's move was encouraging.
In an exchange of letters released here and in Moscow Sun
day night, Kennedy told Khrushchev he was "encouraged that
you are prepared to accept the principle of on-site inspections."
The State Department said the United States now hopes
that discussions on the long deadlocked test ban issue "can be
continued to a successful conclusion."
U.S. officials said Khrushchev's policy reversal could lead
to a real breakthrough in the test ban negotiations. Whether
it does will depend on whether Khrushchev is willing to in
crease the number of on-site inspections to double or triple
the total he told Kennedy he would agree to at once that is,
two or three a year. The United States is asking for eight or 10.
Representatives of the three nuclear powers will reopen
negotiations in a meeting here Tuesday afternoon.
(In Moscow, Foreign Minister Andrei A. Gromyko told cor
respondents Monday night three on-site inspections are all the
Soviet Union can agree to in a test ban agreement and in
sisted France must come in too.)
While the Soviet leadei linked his conciliatory move on
nuclear testing to the U.S.-Soviet agreement on Cuba, officials
here believe there is a strong possibility that Khrushchev is
reconsidering his relations with the West in the light of his
split with Communist China. If this is so, it could mean that he
is entirely serious about putting an end to nuclear tests and
would be prepared to make additional concessions. s
At the United Nations, diplomats saw encouraging progress
in Khrushchev's move, and in Britain a Foreign Office spokes
man said: 'This is obviously an important development, since
in particular it accepts the principle of on-site inspection. But,
as President Kennedy's answer shows, there are many problems
still to be solved."
The reason Khrushchev offered Kennedy for his policy re
versal was that he understood that Kennedy could not persuade
the U.S. Senate to ratify a test ban treaty unless there was
some provision for on-site inspections,
"If this is the only difficulty on the way to agreement," he
wrote, "then for the noble and humane goal of ceasing nuclear
weapon tests we are ready to meet you half way in this ques
tion." Kennedy replied that the right of inspection at some of the
sites where a sneak nuclear test might have been held is essen
tial not only because of congressional concern but because of '
the need to have "a reliable agreement."
Khrushchev said his deputy foreign minister, Vasily .V.
Kuznetsov, was told by U.S. Ambassador Arthur Dean last
October that the U.S. government would consider two to four
on-site inspections a year to be sufficient.
Kennedy replied that Dean actually had said the United '.
States would require eight to 10 inspections, which was a re
duction from the 12 to 20 previously demanded by the United
States. Kennedy made clear that the total Khrushchev offered
was not enough.
mi
m
mm
11
mm
i Swell Spending Slate im
3
Ide
10c
nf hl would be noi. red intu purchases
nSv goods and services, Kennedy sail, and the spending
aniiss-ould be swollen as corporations -- also beneficiaries
4.. ,-i!.tio iiivirlnrl nnvnv'ius. The risiig demand
told Icall for greater output and more ilictory 1 iring and
nee, he said, more income ano siui. m'e ipwiv
idwi continued: t ' '
.uw.. if tha tav nrneram had no influence on investment
jindtig either directly or indirectly - the $f' to $9 bil-
1 ?.dned divectly to me tiow x consumer .
L iovth a tiw of at least 518 million tl added consumer
i d. and sen: ces. .
"l".ut the program will also generate ilirect aid indirect
muo.tmr nt snendinff. The lTOductioi of new
fc&ines, and the building of new factories, stores, iiffices and
iartments adil to incomus in the same way is dbea the produc
M of consuf .er goods. '
I "This too lets off a derived chain reaction of consumer
jfcnding -lding at least another $1 billioii of output of con
finer go' Tt .every S'i billion of added iivestmert.
IS-ieciaf tax reliet-fat small businesses would le retroac
' Ve'to Jan. 1, 1963, he -disclosed. This wuild be I full year
aead of the Htart nf the basic corporate ax rate reductions
Em SS5r cent to 47 per cent, a $2.5-billinn cut.
t Uirporauons now pay ou pei u.. "
jcome plus aa additional 22 per cent on (he rest ;or a total
S2 per cent, nenneay saia iam, an ui mi v.. ...... j-,
. i. nii the first S25.000 would be dropped to 2:! per cent,
H tv.. no ! nt nvor.nll rate would be retainer for 1963.
pi lire v- k - - - - . .. ...,,,
Thus, companies with small earnings wouu h"--"
coneressionul critics who chal-
Hed his plan for a $10-billion net tax reluction 1i the face
j.finit.iaHnn snH A.billion budeet. Remedy stessed the
Ia i nt iriis mn. mines and factoriet back to work.
rcM r-. ,, . ..... i,,i,
The anticipated deticit wouio De runs"'? uncf..
now nnt ninatecl even II taxes were iiui. ioiui.
a as is
fcnnedy raid, because a slack economs
lough taxable income and profits.
is ii ot producing
Past Two Years Reviewed
tt'ASy ill, ' Persona! incom
i Mtim th.t itw Minntrv was "in the grp of its third reces-
Inn in seven years" when he took offiie, Kenu-wly recited
measures taken by his administration to hdp bring alout what
J..t.1arf so "nntahlA" palnft since thCIT .
I1C UCMIAU " .... . ,
Personal income, has risen ny $vs Diuun m a i.:uu.u
year, be reported, ano ino anei-n u
families was increased ly 8 per iient. This
V-Wl-a;-year increase in living standards for a
S.W Nontoi-3 employment rose by z miiiita wmie i,
J work-weelf fcif.k't.aned from 39.3 hours to .3 hours. Consumer
4 prices rose ii: . ly LVper cent a year, leu than in iny major
industrialize i rxntr.except Canada. " -
Tho bsltiw of. payments defied, Keinedy went on, has
V. narrowed Ifovt 3;f billion in 1960 to about 2 billio ir 1962,
and the reiat'isi&biUty in U.S. prices hai improvei' the com
netitiveness of A nefican goods in world n arkets.
The Vt&f did not renew his requ. t for stai uby anti-r-tession
jo-W r-jde in his economic n essage last year and
rejected by Coirs. But he gave notice that, whe.v this ses
sion's majol ti-Tnverhaui is finished, he will puih again for
i the riSSpiwa Jo cut taxes tempar.ril f, and .pe A up pub
lie works scefdmg. at the onset of a rece ion. 1
He "ted lb..t Congress also has fUe to enact .liver leg
m od last year. Pmnpt ac ion should be Ukcn.
he S to w"i the law. which require he Treasury to sup
; port he p.k i.f silver and oblige the fler) reseiw system
' toki?tt reaerve at backing for sw erUH.tes.
t to Keep . mi r ... . Congre!S o enlarge
M nneon benefit. i extend : heir cov
mi I'l.Z.WiWr. broadening of oc-.apat.on. tiered by
My.Z tho $UJ Mur-Jsum wage.
U.N. Forces
Welcomed
IntoKolwezi
KOLWEZI, Katanga (tfl
United Nations forces
moved peacefully into Kol
wezi Monday and the mili
tary action to reintegrate
Katanga with the rest of
the Congo seemed virtually
at an end.
Operation "Grand Slam Two"
began at dawn. It was com
pleted about eight hours later,
with Brig. Reginald Noronha,
the U. N. military commander,
being welcomed into town by
President MOise Tshombe.
Not a shot was fired and little
knots of civilians and unarmed
Katanga gendarmes waved
cheering as the U.N. column
rumbled past. .
Kolwezi was the last strong
hold of Katanga , secessionist
forces.
The -U. N. task fowv4)t -100
trucks, armored cars, troop car
riers and ampnimous vcniciin
rendezvoused with a Katangan
peace delegation at the little
village of Pumpi, 45 miles from
the center of this big mining
and refinery town.
Then, with Noronha in the
lead, the U. N. column started to
roll. At the 400-yard-Iong Del
commune Bridge over the Lual-
aba River, four tons of explo
sive were removed by Indian
engineers. The explosive was
placed in position two weeks
ago, when Tshombe threatened
a scorched eartn campaign 10
hold up the advancing U. N.
troops but detonators were re
moved by the president's white
soldiers some 12 hours before
the U.N. arrival.
Noronha met Tshombe at his
temporary residence in down-
tnwn Knlwezi. They snoox nanus
like old friends and posed for
pictures. Tshombe was smiling
and joking ano asuea norumm
whether he ran into any trouble.
Said the Indian commander:
"No. and I want to thank you
fnr knenine vour word."
Tshombe agreed last week to
give the U.N. freedom of move
ment throughout naianga oui
the U.N. troops were rrcpared
for trouble anyway.
The Katangan troops have now
to stack their arms in a central
depot under U.N. supervision
before being integrated In the
forces of the Congolese central
government.
U.N. Undersecretary Ralph
J. Bunche said in New York
that occunation of Kolwezi
would lead to the rapid windup
of the U.N. military operation
that emnlov. nearly 19,000 men.
The oDcration has forced the
United Nation, nearly to bankruptcy.
I lilf
fxi -O r ' -T-Cf. r.
(APWirtphotol
The two elder statesmen of Europe,' West German Chancellor Konrad
Adenauer, left, and French President Charles de Gaulle, met in the
F.lvsee Palaca in Paris Monday as thev onened three davs of talks on
i n m i incn-errrranrTOTperauon to acnieve European unity, (tsee story,
Corporate Taxes Down
State Budget
Outlook Dark
(From AP, UPI Reports)
SALEM Chances for balancing the state's budget by
the end of this fiscal year grew darker Monday with tha
announcement that corporation Income taxes would pro-
auce arjour 91. i minion less man expectea.
mis news came from uov. Mark Hatfield at his week
ly news conference. He said he would direct state agen
cies to cut down by that amount so the budget could be
Daiancea. v
Before this development, the state had faced the prob
lem of some $11 million less in taxes for the current bl
ennium than originally estimated by the 1961 Legisla
ture. This fiscal year ana the mennium ena June 30.
To keep from running at a deficit, state agencies al-
Paris
Hatfield Fails
To Reappoint
Eugene Man
SALEM W) Gov. Mark Hat
field said Monday he has ap
pointed Bert Keith, The Dalles,
to a .ix-year term on the Ore
gon State Racing Commission,
succeeding C. A. Huntington,
Eugene. Huntington had been
a member of the commission
since 1939.
Hatfield said this appoint
ment had "absolutely no rela
tionship to the pending commis
sion hearing on a dog racing
track at Wilsonville in Clacka
mas County."
"I feel that occasionally new
blood is needed," Hatfield said.
He said Keith was "representa
tive of the hiRh caliber of men"
that should serve on such commissions.
Hatfield said he had re
appointed Dr. W. R. Todd, Port
land, to the commission.
In Eucene. Huntington de
clined to comment on the fact
he has been replaced on the po
sition he's held with the racing
commission for 24 years.
"I've nothing to ay," Hunt
ington declared.
Huntincton. a Republican, re-
rivl his first six-year appoint
ment from Gov. C h a rl e .
Sprague. He wa. re-appointed
in additional .ix-year terms by
r.nv. Earl Snell. Gov. Douglas
McKav. and Gov. Robert
Holmes.
Eugenean Wins
Heroism Medal
"One of the biggest thrills of
my life," is how an 18-year-old
Eugene youth describe, hi. feel
ings on being told ho is the
recipient of a Carnegie Bronze
medal for heroism.
Everett P. Evenson, of 760
Sister. View Ave., wa. a 16-year-old
Explorer Scout on July
7, 1960, when he saved a teen
age girl from drowning in the
McKenzie River near Armitage
Park.
Evenson wa. sitting on the
river bank when he heard the
scream, of a girl, later identi
fied as Paula Reed, 16, of Rt.
Box 338. Eugene. Evenson
dived into the water and pulled
the girl to shore.
The award, presented by tne
Carnegie Hero Fund Commis
sion, carries with it a cash award
of $500 in addition to the med
al. Evenson also has received
an Honor Medal from the na
tional Boy Cco"t office -Tor
heroic action at the risk cf his
own life."
Evenson, a 1962 graduate ot
North Eugene High School, is
the son of Mr. and Mrs. Paul
Evenson.
J
EVERETT EVENSON
Sowed Girl From DrJumino
Press Parley Slated
WASHINGTON W) Presi
dent Kennedy will hold a new.
conference Wednesdsy, th
White House announce? Mon
day.
Indians Expelled
DAR ES-SALAAM, T a n K a n
yika UV-About 900 Indians are
on their way to Bombay after
being expelled from Portuguese
Mozambique in rctailiatlon for
India'a seizure of Goa. One
refugee said another 250 In
dians have been given a month
to leave Mozambique.
UO Waves Paddle After Hazing Reports
By DON BISHOFF
Of the Reslitcr-Guard
The University of Oregon was
brandishing its administrative
paddle Monday and threatening
to use it on any fraternity found
guilty of the age-old practice if
hazing.
Fraternities found to have
engaged in hazing physical or
personal abuse or degradation of
student pledges will be closed
for one year. President Arthur
Flemmine warned in a .tate-
ment released Sunday.
Donald DuShane, dean of stu
dents, said Monday that his of
fice has been investigating re
ports of hazing for the past two
weeks. Charges brought against
three fraternities before the
Inter- Fraternity President's
Council list week "were to a
I large extent brought by us," Du
Shane said.
The investigation is continu
ing, the dean said. "We're seek
ing information and confirma
tion of rumor, from every possi
ble source."
DuShane is to report the re
sults cf his investigation to
President Flemming. The dean
said Monday he doesn't know
when the investigation will be
finished.
The Ore son Daily Enwrald,
student newspaper, charged in
a Monday editorial that "Dur
ing fraternity initiation last
wek, of tho houses initiating,
only a few did not use hazing
practices. Some oi ine nazing
techniques involved physical
violence, personal degradation,
and in an appalling number of
instances, outright perversion."
Of this charge DuShane said,
"Reoorts that we hive would
not substantiate this as of this
time." Investigation o far has
shown hazing exists, but not to
the degree the editorial implies,
the dean .aid.
He said he plans to talk with
Emerald Editor Ron Buel to at
tempt to substantiate or dis
prove the charges.
The three . fraternities
charged last week with hazing
are Alpha Tau Omega, Delta
Upsilon, and Sigma Nu. No te
ller was taken against them alt
er Kenneth wnson, presiucm
of the tribunal, resigned in the
middle of a meeting, saying I
can't .it here a. an individual
any more and make judgments
on one group wane ine wnoie
.ystem is guilty."
The university and the Inter-
Fraternity President." Council
iun vears a so drew up a no-
hazing agreement. Two viola
tion, last year brought only
non-punitive action against the
fraternities Involved, according
to John Hanson, assistant dean
of men.
President Flemming said in
his Sunday "get tough" state
ment, "There is no place on the
University of Oregon campus
for any group that engages in
hazing practices and tnercpy
demonstrates it. utter lack of
concern for the dignity, worth,
and well being cf tndlvidu
lis
He said fraternities found
guilty would be closed unless
extenuating clrcum stances
dictated probation. If Individu
als rather than whole iraiemi-
tiez are found to be responsi
ble, action will be taken against
them, Flemming said.
Meanwhile, State Senator
Glen Stadler, D-Springfield,
who Saturday dangled the spec
ter of a legislative investigation
of hazing before the universi
ty, said Monday he was satisfied
with Flemming'n statement and
would not initiate an investiga
lion.
ready have been directed to I
save more tnan $ts million,
ana nau.eia nas asiusu lor
a transfer of $5.5 million to
the general fund from a vet'
erans' Dond sinking lund.
Hatfield said the decrease in
corporate taxes . also would
mean about $4 million less in
revenue estimates for the 1963-
65 biennium. Estimates for that
period are based on percentage
Increases over revenues lor tnis
biennium.
To make that up,' Hatfield
said he would propose that em
ployers be required to pay their
withholding taxes to the state
two months earlier.
He also announced he was
proposing new legislation to
change truck tax levies. The
bill would cut the fees paid by
trucks of less than 6,000 pounds
by .4 per cent, and raise the
fees for trucks over 6,000
pounds by .3 per cent.
He said the new tax struc
tures would "remove inequities"
in the present law.
The new rates were proposed.
he said, after review of Illinou
Road Test results which indi
cated large trucks were being
charged an excessively high li
cense rate.
Although the new proposals
generally reflect a .3 per cent
hike for trucks over 6,000
pounds, he said in effect it
would require medium size
trucks to pay a larger .hare of
the tax and give relief to big
trucks.
Hatfield vetoed a bill two
years ago to give tax relief to
big trucks, pending results ot
the road study.
He said he could not yet com
ment on a proposal to finance
hlchcr education classroom con
struction from bonds repaid by
student fees.
Ho did say. however, he felt
students should pay a greater
share of the cost ot education
and pointed to his rccommenda'
tion that tuition fees should be
raised.
When asked If he agreed an
investigation should bo mad of
tho resignation of the director
of the Oregon Primate Research
Center near Beaverton, Hatfield
replied. "More cooks In the
broth at this time might com
plicate things."
Howard Pickering recently
resigned as director of the cen
ter because of a dispute with
Oregon Medical School Dean W.
E. Baird.
Funeral Held
For Resident
Of 57 Years
Dr. Allie M. Smith, a resident .
of Eugene since 1906 and a re
tired osteopath, died Sunday at '
her home, 1129 Oak St., Eugene.
Private funeral services were
Monday morning.
Miss Smith. 86, had been ill
for a short time, friend, said. '
She came to Eugene from her
native Missouri in 1906, and be
gan her osteopathic practice in
Eugene that year. Later, she be
came a business partner of the
late Sue Doris, and the two
women owned an asparagus
farm In the River Road area,
built and operated a service sta
tion in Eugene and developed
property on Oak Street, wnicn
became the Tawno-Ker Apart
ments. '
She retired from active prac
tice of osteopathy some 20 years
'80.
Miss Smith was a cnaner
member of the Eugene Business
and Professional Women's uud
when it was organized In 1924,
and served as the organization's
president from 1931 to 1934.
Survivors include inree sisiers
In Texas, Mrs. E. C. La Bauve,
Mrs. C. B. Trousdale and Anna
Clement, and a brother, R. H.
Smith of Missouri.
Friends said contributions in
Miss Smith's memory may be
made to the scholarship fund oi
the Eugene Business and Pro
fessional Women's Club, in care
of Mrs. George N. Bigg., treas
urer, 3220 Richard Lane, Eu
gene. Crowd Views Ice Jam
NIAGARA FALLS, N.Y. I
A 13-mile ice jam in the lower
Niagara River which drew thou
sands of spectators during the
weekend remained solid Mon
day. The Coast Guard said there
were no signs ot an immediate
breakup.
INSIDE TODAY
Women'. New. 7A
Editorials
Sports ....
Births
Theaters .......
TV Previews ...
Stock Market ..
Business Beat ..
Classified
8A
. 2, 3B
. IB
9A
.... 8B ,
.... 9A
12B
. 61 IB
FAST .
This ad ran In Monday's
"Too late to classify column"
. , . apartment rented the
same night
FURNISHED APARTMENT. ThrM
' room! and bath. Ona adult. No
pats. 172. M. Dl Wlllamatt.
Register Guard claral
fled ads bring results
because they (o Into so
many Emerald Empire
homes every day.
pi " h - " v.