EUGENE REGISTER-GUARD, Monday, Jan. 21. J963 Pate 5A
Highlights
Of Message
Pr-riA0 " F1llowin8 a texluil highlight of
Monday" Kennedy s "nnual economic message to Congress
i u . ,0t. lts advanccs "e nation is still falling substantial
r Kr.uf "S economlc Potential a potential we must ful
fill both to raise our standard of well-being at home and
serve the cause of freedom abroad. . .
liUJONS Or COUARS
400
1:0
580
4S0
400
GQ$$ NATIONAL PRODUCT
' IN J962 rMCES '
J4 ii io S7 it St J ! HJ
The decade ahead presents a most favorable gathering of
forces for economic progress. . ,
The outlook for continued moderate expansion in 1963 is
now favorable. . . I do not expect a fifth postwar recession
to interrupt our progress. . . and economic expansion in 1963,
at any reasonable predictable pace, will leave the economy
well below the employment act's high standard of maximum
employment, production and purchasing power. . .
We need to run just to keep pace and run swiftly to gain
ground in our race to full utilization. . .
GNP
(AP Wlrephoto)
Chart shows increase in gross national
product (total output of goods and
services) in 1962 to $544 billion, as
outlined in President Kennedy's eco
nomic report to Congress Monday.
The main block to full employment is' an unrcalistically
heavy burder of taxation. The time has come to remove it. . .
"We approach the issue of tax revision, not in an atmos
phere of haste and panic brought on by recession, but in a pe
riod of relative calm. Yet if we are to restore the healthy glow
of dynamic prosperity to the U.S. economy and avoid a length
ening of the 5-year period of unrealized promise, we have no
time to lose. . .
"If we were to slide into recession through failure to act
on taxes, the cash deficit for the next year would be larger
Wlfftcs Vtei2SJ2!!nclcaJasa the estimated deficit with tax
reduction. ...
Our practical choice is not between deficit and surplus but
between two kinds of deficits: Between deficits born of waste
and weakness and. deficits incurred as we build our future
strength. . . As the economy returns to full employment, the
budget will return to constructive balance. , .
I am proposing a major reduction in individual income tax
rates. Rates should be cut in three stages, from their present
range of 21 to 91 per cent to the more reasonable range of
14 to 65 per cent. . .
The second step in my program to lift investment incentives
is to reduce the corporate tax rate from 52 per cent to 47 per
cent. . . Particularly to aid small business, I am recommending
that effective Jan. 1, 1963, 1he rate on the first $25,000 of cor
porate income be dropped from 30 to 22 per cent while the
52 per cent rate on corporate income over $25,000 is retained.
In later stages the 52 per cent would drop to 47 per cent. . ,
As long as wage rate increases stay within the bounds of
productivity increases, as long as the push for higher margins
through higher prices is restrained. . . the outlook for stable
prices is excellent. ... .
Our commercial trade surplus the excess of our exports of
goods and services over imports must rise substantially to as
sure that we will reach balance of payments equilibrium with
in a reasonable period. . .
Work on the development of an acceptable plan for quick
tax action to counter future recessions should continue. . . I
urge that Congress appropriate the balance of funds author
ized for programs under the Public Works Acceleration Act.. .
I will propose later this year that Congress enact perman
ent improvement in our federal-state system of unemployment
insurance to extend coverage to more workers and to increase
the size and duration of benefits.
I shall propose a number of measures to encourage civilian
research and development and to make the byproducts of mili
tary and space research easily accessible to civilian industry. . .
Our educational frontier can and must still be widened. . .
Education must not stop in the classroom. . . the individual
and firm have shouldered 'he primary responsibility for the
retrained required to keep pace with technical advance. . .
But government must support and supplement these private
efforts. . .
Bob Kennedy Says Meredith
May End Stay at Ole Miss
Spokesman Consulted
Co-Author Defends
Stevenson Article
NEW YORK' .(Hi Stewart
Alsop, co author' of a controver
sial article on Adlal E. Steven
son s position in the ' Cuban
crisis, defended the story Mon-
Commuter
Trains Ram;
100 Injured
PHILADELPHIA Wl A Read
ing Railroad commuter train
plowed into the back end of an
other one at a midcity station
Monday. Dr. Savena Brunetti,
chief police and fire department
surgeon, said 100 or more per
sons were taken to hospitals,
most of them for treatment of
slight injuries. '
The crash occurred at the 10th
and Spring Garden Street sta
tion. A special Jcnkintown shut
tle train necessitated by the
citywide transit strike, rammed
into a crowded train from Chest
nut Hill.
A woman riding the Chestnut
Hill train related, "It was terri
ble. All of a sudden there was
this terrific noise, then we were
all piling on top of one an
other." Mary Day, 20-year-old secre
tary, who was aboard the Chest
nut" Hill train, said, "A few
women started to yell, 'what's
happened,' but there was no
real panic or anything like
that."
She said many of the passen
gers, shaken up like herself but
not actually hurt, stumbled out
onto the station platform in the
15-degree cold and sat down
wherever they could find a
perch, or just walked around to
compose themselves. - ,
Spokesman for the railroad
said they had not determined
the cause of the accident.
Dockworkers Accept Contract Plan
day and said Stevenson's official
spokesman was consulted three
times before it was written. -.
; Stevenson, U.S. ambassador to
the United Nations, was pic
tured in the article in the Satur
day Evening Post last month as
having disagreed with President
Kennedy's advisers on the Cu
ban blockade.
It also said he "preferred po
litical negotiation to the alterna
tive of military action."
Writing in the current issue
of the Saturday Evening Post,
Alsop said he and Charles Bart
lett,. co-authors of the article,
had three lengthy talks, with
Clayton Fritehcy, special assist
ant to Stevenson.
He said Fritchey summarized
as follows the position Steven
son took at a meeting of Execu
tive' Committee members of , the
National Security Council:
"Stevenson's general approach
was to avoid military action un
til the peace-keeping machinery
of the United Nations had a
chance to function. He therefore
opposed the air attack and fav
ored a blockade. , ,
, "As the consensus hardened
an the quarantine approach, he
turned his thoughts toward the
possibility of a settlement, both
short term and long range. He
wanted all nuclcnr capability de
fused and the Cuban bases dis
mantled. ' 1
"He said that if it were neccs
sary to sweeten up our negoti-
ating position at this point, we
might even consider yielding
the Guantanamo base. As a final
point, he suggested a proposi
tion to the U.S.S.R. to discuss
the elimination of foreign bases
in connection with the disarma
ment negotiations." .
NEW YORK OP Negotiators
for striking longshoremen have
accepted a presidential board's
proposals to end the month
long. Maine to-Texas dock tie
up. Ship owners deferred action
until Tuesday.
The board's proposal for a 39-cents-an
hour package increase
over two years including 24
cents in wage boosts was ac- J
ccpted Sunday night by nego-J
tiators for union longshoremen
who work in ports from Nor-i
folk, Va northward. ' I
A union spokesman said that
even if ship owners and steve
doring companies accept the
proposal the strike could not be
considered over until dockwork
ers along the Southeast and Gulf
coasts get the same offer.
Sen. Wayne Morse, D-Ore.,
chairman of a mediation board
appointed by President Kenne
dy, observed that the New York
pact traditionally sets the pat
tern for other ports which sign
separate contracts.
Federal mediators were to
meet here again Monday with
union and management repre
sentatives from South Atlantic
and Gulf Coast ports. The rep
resentatives will return to their
home ports for full dress nego
tiations. The strike by 60,000 long
shoremen has paralyzed most
East and Gulf Coast shipping
for 30 days. It has idled some
20,000 other workers, including
about 10,000 truck drivers in
the New York area.
Because more than 550 ships
arc stalled with no one to load
on unload cargo, an estimated I
20,000 railroad boxcars are
backed up along the Atlantic
and Gulf Coasts.
Losses due to the strike are
nearing the $600-million mark.
Kennedy had instructed the
special three-man board to re
port the outcome of its efforts
by the end of Monday's work
day.
.Mors,', said through a spokes-1
iiuiii nidi ne mil nit: an imcriiii
report with the President, point
ing out that ratification of the
agreement by the longshoremen
might take some time.
Morse had emphasized that
neither the AFL-CIO Interna
tional Longshoremen's Assn. or
the New York Shipping Assn.,
which represents 145 shipping
and stevedoring companies, is
forced to accept the board's pro
posal. But he made clear to them, he
said, "that they could make no
greater mistake than to take the
false assumption that they
could do better by taking (heir
final chance in the halls of Con
gress." The board's package proposal
was 11 cents less than the long
shoremen had asked and 17
cents more than the industry
had offered.
Alexander P. Chopin, chief
negotiator for the shipping asso
ciation, said tho recommended
settlement represented "a $25
million package for the port of
New York alone which is very,
high."
The mediation board recom
mended a 15-cent hourly wage
boost retroactive to last Oct. 1,
when the old contract ran out,
and another 9-rent hourly boost
next Oct. 1. The longshoremen'
basic pay averaged $3.02 an
hour before the strike.
Both sides, under the propo
sal, would agree to submit Uifl
issue of manpower utilization
and job security to study by '
the Department of Labor.
No Progress in Other Strikes
By I'nitrd Press International
Longshoremen accepted a
presidential board's recommen
dations in the long, costly
Maine-lo-Tcxas dock strike late
Sunday, but there were no so
lutions yet in other major labor
disputes.
The weeks-old newspaper
strikes in Cleveland and New
York continued.
In Cleveland, the 320-member
Photo-engravers Local 24 voted
Sunday to seek permission to
enter the strike against the
Press and the Plain Dealer
newspapers.
Secretary Treasurer Charles
Thomason said the local will
ask the international for per
mission to go on strike. The
Photo-engravers would be the
third union to join the strike
since the walkout began Nov.
29.
Negotiations between the
Newspaper Guild and the pub
lishers were to resume this af
ternoon. Talks with the Team
sters were in recess indefi
nitely. In New York, it was expected
the negotiations would not re
sume before Tuesday. Nine
major New York newspapers
have been shut down since Dec.
8.
The printers were expected
to make known their position
Tuesday on a new proposal of
fered by the publishers Friday.
The publishers have offered the
printers a $20 weekly package
increase over two years, and the
union wants a $37 package.
In Philadelphia a federal
mediator said the Transport
Workers Union had made a
"significant proposal" which
the company was going to study
in the city's six-day transit
strike.
Another negotiation session
was scheduled for Monday be
tween the union and the Phil
adelphia Transportation Co.
More than a million Philadel
phia commuters have had to
find other ways to get to work
because of the bus, trolley and
subway-elevated shutdown.
WASHINGTON OIPD Atty.
Gen. Robert F. Kennedy said
Monday the chances at the pres
ent time are that James Mere
dith will leave the University
of Mississippi.
Kennedy said he did not think
Meredith made a mistake in in
tegrating the university.
"I. think that's a difficult
area, but Meredith decided he
uranlerl tn da it and these deci
sions are rp to the individual,"
hp sairi.
Tf Meredith docs quit, Ken
nedy said, it would make future
integration efforts in such states
as Alabama or South Carolina
more difficult.
Kennedy said he hoped the
29-year-old Negro student would
continue his studies at "Ole
Miss" because a great deal of
Meredith's own efforts and gov
ernment action to enforce the
law went into his admittance to
the school. "
"Everybody in the United
UO Marine Institute
Plans Teacher Session
Twentvfive college teachers
r hinlnoical sciences through-
nut the United states win oe
participating in the University
of Oregon's summer institute in
marine biology, June 17 to Aug.
Financed by the National Sci
ence Foundation from a grant,
of S35.200, the sessions will be
conducted at the Oregon Insti
tute of Marine Biology at Char ,
leston, Ore. -
Richard W. Castenholz, pro
fessor of biology at the univer
sity, will direct the institute. Al
so on the institute faculty-will
be Harry K. Fritchman Boise
Junior College. Idaho: and Shir
ley Sparling. University of Cali
fornia at Santa Barbara.
Further information and ap
plications may be obtained by
writing Castenholz at the ue
partment of Biolory, University
of Oregon, Eugene.
States has contributed some
thing, because the taxpayer's
money has been used," he
added.
Kennedy gave these views
and others about the first two
years of his brother's adminis
tration in a copyrighted inter
view with "U.S. News and World
Report."
Asked about the attempted
invasion of Cuba by refugees,
the attorney general said he
wanted to clear up reports that
the President withdrew air cov
er from .the operation.
Some have blamed the failure
of the Bay of Pigs invasion on
the lack of protective air cover
when the force was on the Cu
ban beach being attacked by
Castro's small air force.
Kennedy said the President
"never withdrew U.S. air cover.
There was never any plan to
have U.S. air cover."
Although planning for the in
vasion was primarily the re
sponsibility of the Central In
telligence Agency, Kennedy
said, the Joint Chiefs of Staff
and the President approved the
plan. ,
However, he said "the plans
and the recommendations obvi
ously were not adequate."
Reds Hit Kennedy's
Message on Budget
TOKYO lei Peking's New
China news agency gave a long
account Saturday of President
Kennedy's budget message to
Congress, saying it called for
unprecedented expenditures to
carry out aggression. -
It said the President also had
made clear "that during the
1963-64 fiscal years the United
States would send more arms
to its allies." The purpose of
this, Peking said, would be "to
urge them to follow the United
States in arms expansion and
war preparations."
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