iqn
budget smallest
in many years
WASHINGTON (UPI) -Presi
dent Johnson today sent an aid
skeptical Congress the smallest
foreign aid request since the
start of the Marshall Plan a
total of $3.4 billion in new mil
itary and economic aid funds in
fiscal 1965.
Johnson also split the foreign
aid budget in two, listing mili
tary and economic aid under
different headings, in a move
that appeared aimed at giving
aid critics a harder target. But
a top aid official said the ad'
ministration would not neces'
sarily send the two to Con
gress In separate packages.
The total aid request of $3,-
roz.iuu.uuo was ;i.5 billion be
low the funds originally asked
by the late President John F.
Kennedy for the current fiscal
year. It was the smallest ad
ministration request since the
Marshall Plan first began in
1947, shading the previous low
of 195S by about $86 million.
Congress finally chopped ad
ministration aid requests to $3
billion last year, although funds
available for spending exceed
ed this amount because of car
ryovers from other years and
loan repayments.
In his budget message, John
son said the less-developed na
tions are engaged in "a criti
cal struggle for political inde
pendence and economic better
ment" on which depends the
stability and security of much
of the world. He called contin
ued U.S. aid "essential."
As expected, Johnson di
vorced his $1 billion military
assistance request from the $2.4
billion he asked for such eco
nomic aid as the Alliance for
Progress and other loan and
grant programs.
The idea would be to have
the military aid funds consid
ered by the House defense ap
propriations subcommittee ra
ther than the foreign aid sub
committee which is headed by
aid opponent Otto E. Passman,
D-La. But there is no guarantee
the strategy will work; the
House could easily put the two
parts of the program back to
gether under one heading.
For other foreign policy func
tionsranging from the Peace
Corps and the U.S. Information
Agency to the Tariff Commis
sion and U.S. Embassy recep
tionsthe budget sought $1.2
billion in new spending author
ity. Johnson asked for $1 billion
In new military assistance
funds, but forecast actual 1965
outlays of $1.2 billion because
some money is left over from
past years. He said about 70 per
cent of U.S. military aid now
goes to nine countries on the
borders of the Soviet Union and
Red China.
Although the budget asked
for $2.39 billion in new econom
ic aid money, it forecast actual
outlays of only $2.15 billion
during the year. This would be
about $50 million above estimat
ed outlays for the current fis
cal year.
No sag seen
in fag sales
WASHINGTON (UPI)-Presi-dent
Johnson quit smoking in
1955 after his heart attack, but
his new budget doesn't envision
many Americans taking the
same step as a result of the re
cent government report on the
health hazards of using tobacco.
The budget estimated the
government would take in $2.14
billion from cigarette excise
taxes in the year starting July
1. That would be $65 million
more than collected during the
current fiscal year.
Nor did the budget makers
look for a big switch to pipes
and cigars. They estimated the
cigar tax take at $52 million,
and the manufactured tobacco
tax collection at $17 million.
That would be an Increase of
only $1 million for cigars, the
same as the year before, and
no change in the revenues from
smoking and chewing tobacco
and snuff sales.
Road bottleneck
is removed
MEDFORD (UPI)- The last
major traffic bottleneck be
tween the California state line
and downtown Portland was re
moved Monday.
Gov. Mark Hatfield and a
host of other officials and civic
leaders dedicated 17.25 miles of
Interstate 5 freeway between
the south end of Medford and
the south end of Ashland. A
portion of It, a 7.8 mile stretch,
bypasses Ashland, and was
opened for the first time.
Although there are still some
sections of two-lane highway on
Interstate S, the opening of the
Ashland bypass makes it possi
ble to drive from California to
Portland without encountering
a stop light.
The Bulletin, Tuetday, January 21, 1964
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HER GARDEN GROWS Thanks to UNICEF, this young
Indian girl in the State of Orlssa can tale care of her garden,
part of a UNICEF-sponsored nutrition project in the region.
Guided by trained teachers, the children plan, plant and
cultivate their gardens. The pennies millions of American
children collect at Halloween are used for this and other
health, vocational and welfare projects.
Johnson emphasizes that budget
assumes passage of tax cut
WASHINGTON (UPI)-Presi-dent
Johnson emphasized to
Congress today that his $97.9
billion budget is built on the
assumption that the lawmakers
will swiftly pass the big tax cut
bill and thereby spur business
activity.
Calling tax reduction an "in
tegral and vital part of my
budgetary proposals," Johnson
said prompt passage of the bill
"should hasten the achievement
of a balanced budget in an eco
nomy of full prosperity."
The Senate Finance Commit
tee hopes to finish action this
week on the $11 billion meas
ure, passed by the House Sept.
25. It would slash tederai in
come tax rates for every cor
poration and for about 51 mil
lion individual U.S. taxpayers.
The President's preoccupa
tion with tax reduction was re-
debating
U.S., Britain -
retail
pricing issues
By Jess Bogus
UPI Staff Wrlttr
NEW YORK (UPI)-LegisIa-
lators in the United States and
Great Britain both have debates
running on proposals affecting
retail pricing.
In Congress, bipartisan groups
of senators and representatives
are backing a quality stabiuza
tion bill. Those who favor it say
it would check price-cutting and
dishonest practices which hurt
distribution; its opponents say
it would establish price fixing
and tend to aid monopolies;
that it would lead to a rise in
the cost of living.
In Britain, the Conservative
government has announced a
plan for legislation which would
abolish what the British call re
sale price maintenance but
with a provision that, within a
definite period after enactment,
manufacturers ana otners at
fected would have the right to
appeal to the courts for ex
emption. Legislation In Congress still Is
in the committee hearing stage,
although the proposals in the
Senate and in the House have
been discussed on the floors of
the respective houses and In the
Congressional Record.
In Britain, the Conservatives
are reported to be split within
themselves on the wisdom of
the measure. j
Congressional advocates of ,
the quality stabilization bill ar-,
gue that it would give protec-,
tion to the small independent
retailer. I
One of the principal argu
ments which has been used !
against the proposal thus far Is i
that it would open the doors to j
price-fixing by manufacturers, j
Advocates say the bill merely j
would permit a manufacturer of
a brand name competitive prod-'
uct to control the use of his
trademark and that this Is a far
cry from permission for all
manufacturers of this product
to get together to fix prices.
fleeted throughout his budget
message.
Offset Revenue Losses
Significantly, the message
forecast that a rapidly growing
economy would more than off
set revenue losses resulting
from the biggest tax cut in his
tory. "Chiefly because of the anti
cipated continuing expansion of
economic activity," Johnson
said, tax collections from indi
viduals and corporations in fis
cal 1965 should increase $3.1
billion over the current year de
spite the proposed rate reduc
tions. The President also counted on
tax cuts to help in spurring the
economy to an anticipated
growth rate of 6.5 per cent this
calendar year, compared with
an average 5.4 per cent rate of
growth for the last three years.
It was on these rosy expecta
tions, buttressed by the stimu
lus of tax reduction, that he
built much of the revenue esti
mates in his big budget.
Control Costs
At the same time, by holding
spending below the current fis
cal year, Johnson reminded the
congressional economy bloc
that this "should provide am
ple assurance of our determina
tion to keep costs under tight
control and move the tax re
duction bill toward speedy ap
proval." He also renewed his plea to
Congress to cut the payroll
withholding rate in the bill to
14 per cent to give the economy
a quick boost. The House bill
would cut the present 18 per
cent withholding rate to 15 per
cent this year, and delay a
drop to 14 per cent until 1965.
Johnson noted, however, that
the 15 per cent rate will conti
nue in effect until the bill is
passed with the result that too
much money will be collected
from lower bracket tax-payers.
Cutting the rate to 14 per cent
this year will balance things
out for these people and avoid
time-consuming refunds.
HEARING POSTPONED
PORTLAND (UPI)-A hear
ing on a representation election
petition by Roseburg Local 3-436
of the International Woodwork
ers of America was postponed
indefinitely Monday by the Na
tional Labor Relations Board.
The hearing, involving L&H
Lumber Co. of Roseburg, was
scheduled for Friday.
Wind-whipped
rains pelt East,
West Coasts
By United Press International
Wind whipped rain soaked
the East and West Coasts today
but left the Midwest high and
dry with spring-like weather.
Heavy snow piled up in the
Western mountains.
Milford. Mass., reported 2.05
inches of rain during the night.
Foxboro, Mass., had 2.02 inch
es and Norwood, Mass., had
1.97.
Gale warnings were hoisted
along the New England coast.
Wind gusts were clocked at
more than 60 miles an hour far
inland, at Allentown, Pa.
On the West Coast, more
than two inches of rain rode
strong winds into the San Fran
cisco Bay region during the
night and more than an Inch
was reported at Burbank.
Four inches of fresh snow
belted Great Falls, Mont., in six
hours today and Butte, Mont.,
was slugged with eight inches
of new snow in 24 hours.
Tampa. Fia.. reported more
than an inch of rain in 24 hours.
Winds hit 72 m.p.h. at Appo
mattox, Va., Monday and down
ed power lines, trees and signs.
The Seattle, Wash., area was
buffeted by 80 m.p.h. winds that
broke store windows, toppled a
radio tower and pulled down
power lines.
Despite turbulent weather at
the nation's edges, the Midwest
and Plains basked in a balmy
touch of summer.
The weather bureau described
conditions in the nation's mid
section as "an April in Janu
ary temperature pattern." Bis
marck, N.D., had a record high
of 53 Monday and 60 degree
readings extended as far north
as Central South Dakota.
The weather story was differ
ent in the Western mountains.
Up to 14 inches of new snow
blanketed Northwestern Wyo
ming, closing roads at Teton
Pass at the Wyoming-Utah line
and in Hogback Canyon. Wind
gusts up to 70 miles per hour
were recorded in Eastern Wyo
ming. Cheyenne had a high of
54 degrees. 6 under the record
for the date.
Four inches of snow fell at
Lakeview, Ore., alone the
northern border of California.
Heavy rains pelted the New
York City area. Williamsport,
Pa., had a one Inch snowfall,
No decision yet
on chairmanship
CORVALLIS (UPI) Richard
Kleindienst, national field direc
tor for Arizona Sen. Barry Gold-
water, said Monday a chairman
for a state Goldwater for Presi
dent committee would not be
named immediately.
Kleindienst was in uorvallis
to hear Sig Unander, former
state treasurer, speak at a Ben
ton County Republican Club
meeting on behalf of Goldwater.
Clay Meyers of Portland spoke
for New York Gov. Nelson
Rockefeller.
Kleindienst said the Goldwat
er chairman would name loca
tion of the state headquarters
for the Arizona senator.
It's plenty of
money, any way
you look at it
WASHINGTON (UPI) - The
$97.9 billion which President
Johnson figures the federal gov
ernment must spend in the
coming fiscal year is a lot of
money, no matter how you
look at it.
One way to get a vivid men
tal picture of $97.9 billion Is to
imagine it all stacked up In $1
bills.
The stack would reach about
6,200 miles into space.
END OF ERA Indiana's State Department of Education It closing all one-room schools by
the end of the 1964 school year. Vincennes University, Vincennes, Ind., has erected this one
roomer on its campus for future generations of Hoosiers to visit. This ancient log cabin was
enclosed within a barn for many years so its poplar logs are in a near perfect state of preser
vation. The interior will be restored to the style of the early century.
Nixon's hat
always in ring
NEW YORK (UPI)-Former
Vice President Richard M. Nix
on said Monday his hat is al
ways in the political ring and
a poll indicates that a majority
of GOP voters want it there.
During a taped guest per
formance on Arthur Goldfrey's
radio show Nixon was asked if
he was going to run for presi
dent again. Nixon, without
elaborating replied:
"I never wear a hat so it
must always be In the ring."
In Washington, pollster Louis
Harris released the findings on
a national poll and declared
that Nixon holds a "decisive"
lead for the Republican presi
dential nominatioii among GOP
voters.
The poll also showed that
Nixon would run the strongest
race against President John
son.
Nixon has stated on numer
ous occasions that he is not a
candidate.
SMOKING CONCERN
AGEN, France (UPI) Con
cern about smoking was regis
tered near here 140 years ago.
A clerk at the town hall in
nearby Nerac reported Monday
that he found a municipal de
cree dated 1824 forbidding
smoking "during fairs and
markets or in the streets of the
town."
The decree, signed by the
mayor, did not link smoking
with any disease. It said sim
ply that it "inconvenienced"
non-smokers.
Baker testimony reveals
free stereo set given LBJ
WASHINGTON (UPI)-Presi-
dent Johnson, then Senate Dem
ocratic leader, was given a free
$580 stereo Hi-Fi set in 1959 by
a local insurance dealer at the
request of former Senate aide
Robert u. (Bobby) Baker, it
was disclosed today.
The Incident was described in
previously secret testimony giv
en the Senate Rules committee
by Don B. Reynolds, who has
figured In the Baker case as
an insurance agent and asso
ciate of Baker's who wrote an
insurance policy on Johnson's
life. Reynolds testfied earlier
this month.
In releasing the testimony,
the committee also made pub
lic an authenticated interview
with Walter Jenkins, long-time
Johnson aide who is now a
White House assistant. Jenkins
told committee aides he was
informed that the record play
er was a present from Baker.
Jenkins stated in the Inter
view that he had never heard
that Baker was associated with
Reynolds In the Insurance com
pany which the latter operated.
Reynolds, under questioning
by committee counsel L. P. Mc-
Lendon, said he had no com
munication with Johnson about
the stereo set either before or
after it was shipped to the
Johnson's suburban home.
He told committee Chairman
B. Everett Jordan, D-N.C, how.
ever, that he did not think
there would have been any
question as to whether Johnson
knew the source of the set. He
said the Magnavox Company's
invoice showed that the charges
a total of $584.75 were to be
paid by Reynolds.
Baker, described In previous
public testimony as a former
vice president and silent part
ner in the Reynolds Insurance
firm, was said by Reynolds to
be still a vice president of the
firm on paper at least
under a charter which has not
been amended.
Reynolds said, however, that
Baker has only been in the in
surance company s office on
one occasion.
DEATH PROBED
SEASIDE, Ore. (UPI) - Aa
thoritics today Investigated the
death of Don Kempton, 62, for
mer Seaside municipal judge.
Kempton was dead on arrival
at Seaside Hospital Monday of a
.22 caliber bullet wound in the
heart. Police Chief Ken Healea
said Kempton was reported to
have been cleaning his gun.
Johnson pledges
U.S. payroll cuts
in fiscal 1965
WASHINGTON (UPD-Presl-
dent Johnson pledged in his
budget message today to cut
the government payroll by 1,200
workers by June 30, 1965.
Johnson estimated civilian
government employment in ex
ecutive agencies at z.ou.zuu at
the end of the 196445 fiscal
year.
The last time the federal
work force decreased was be
tween 1957 and 1958, when it
was cut by 36,000. The payroll
held steady at 2,355,000 in 1959
and then rose steadily to the
current year estimate of 2,512,
400. However, the current year Is
no record. Employment zoomed
to 3,787,000 In 1945 and exceed
ed 2,530,000 in both 1952 and
1953.
Johnson estimated there
would be work force cuts
in eight agencies and depart
ments and no change In three
others. Sixteen will nave larger
payrolls.
The estimated reductions
ranged from a 17,080 chop in
the Defense Department to a
cut of three Jobs in the White
House staff. The increases
ranged from 4,730 new jobs in
the Health, Education and Wel
fare Department to 50 new
posts in the Federal Aviation
Agency.
NEW CITY EYED
ROSEBURG (UPI)-Resldents
of the area just north of here
plan to file petitions with the
county clerk asking for a new
city to be known as Edenbower.
A spokesman said about 20
per cent of the residents of the
area have signed petitions. The
area has about 6,500 residents.
HARVEY'S BACK!
All Hnrrejr Wtwaton'i old friends md
coRlomera mn Invited to vUlt htm
1 nit nyf Bend btutneai . . . Time
On Station and Orooerr H mile
north ol torn oa VA. IT.
WHEN
INSURANCE
COUNTS
COUNT ON
PREFERRED
Special Protection for NON-DRINKERS
UCklDV f IJCDD ITT AC
maUKAHec
COMPANY
HENRY T. MERRITT AGENCY
906 Harrtman 382-4331
Wetle's Takes Great Pleasure In Introducing
BEND
CHIROPRACTIC
CLINIC
Dr. B. G. SPURLOCK
Chiropractic Physician
Lab X-Ray Adjustment
PHYSIOTHERAPY
Open dally m. to S p.m.
Closed Thuraday afternoon
121 Greenwood. Bnd
ftwtwteo Bond WU1) K Ha
CI
Ml
The Rustic Inn will be
CLOSED
WEDNESDAYS
from now till the first
of March. Our regular
hours are still in effect
all other days of the week.
THE RUSTIC INN
1036 South Third ' 382-3601
f
if J , v
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X
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2& p;s:7l,.n.r.;ii
to Central
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With Beige Otter
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It's Smart to be Comfortable... Id
flexible, lfgag sole)
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Walk a rnUeor many, wear a milt
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in Pendjo'i fathiowrighl wedge.
Sim 4-10
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Widths
Open Every Friday Until 9
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