MEDFORD (OREGON) MAIL TRIBUNE TI YE
Digest of President Eisenhower's Budget Message To Congress
Wednesday, January 18, 193T
Oregon Projects Get
Budget Allotments
Washington (U.R) With
major worjc nearly done on the
area's largest going project, fed
eral spending would drop slight
ly in the next fiscal year on Ore
gon water and power projects
under President Eisenhower's
budget proposals.
About S78, 622,000 was pro
posed in the budget for work on
projects in Oregon in fiscal 19p8.
Talent Request Hiked
Sizeable increases were rec
ommended for some other proj
ects, including Hill Creek and
Cougar dams along with the Tal
ent project. The latter was hiked
from $1.8 million to about S6
million.
Although the president again
endorsed "partnership" between
KIDNAPED JOCKEY
Charlotte, N. C. (U.Z Police
are searching for an 85-pound
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been the store's trade mark for
eight years.
the government and private in
dustry on power projects, he did
not specifically mention the John
Day project on the Columbia
which he recommended for part
nership last year.
The projects, amounts being
spent this fiscal year and pro
posed for spending next year
with the next fiscal year given
second, include:
Navigation: Chetco river, $225,
000; 200,000: Columbia river at
mouth, $1,168,706, $1,150,000;
Tilamook bay, $951,921,$300,000.
Flood Control: Amazon creek,
$100,000. $446,000: Johnson
creek, $5,000, $145,000; Colum
bia at Sand Point, nothing, $500,
000; Pendleton, nothing, $400,
000; Willamette river $300,000,
$300,000; Cougar dam, $1,706,
981. $6,570,000; Hills Creek dam
$1,969,525, $4,800,000; Lookout
Point dam, $539,570. $1,249,000;
The Dalles dam $47601,935, $19
million.
Reclamation: Wapinitia proj
ect, nothing, $191,000; Crooked
river project, nothing, $750,000;
Kogue river. Talent division, $1
859,596, $6,041,000.
Legislative Program for
'58 Fiscal Year Sketched
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Washington (U.R) Here is
a digest of the main points in
President Eisenhower's budget
message to Congress.
The message sketched his
whole legislative program for
the year as well as the proposed
federal spending budget for the
1958 fiscal year starting next
July 1.
Income and Outgo: Budget is
balanced for third year in a
row. Calls for record peacetime
spending of $71.8 billion an
increase of $2.9 billion over cur
rent year. Assuming continued
prosperity, revenue is estimated
at $73.6 billion, up $3 billion.
Prospective surplus of $1.8 bil
lion would be applied to reduc
tion of federal debt.
Taxes: "Must be retained at
present rates" to fight inflation
Congress should consider "some
relief" for small business, with
"minimum loss of revenue." No
cuts for anybody else. Asked
one-year extension of corpora
tion and excise levies that are
scheduled to drop April 1.
Mail: The administration will
seek higher postal rates, totaling
$654 million a year. Promised
better mail service if rates are
raised.
Interest: Interest on the $275
billion federal debt will cost
$7.4 billion or about 10 per cent
of whole budget. Although debt
is going down, interest rate is
going up in tight money market.
Debt should be down to $269
billion by June 30, 1958.
Defense: Proposed an increase
of $2 billion in military spend
ing to total of $38 billion
Armed forces will remain about
the same size but will buy
"growing quantities" of costly
new weapons to boost firepower.
Guided missile procurement up
35 per cent. Air Force will get
more B-52 jet bombers to re
place B-35s. U. S. Marine di
visions are equipped with a
"variety" of atomic weapons.
Atomic: A spending increase
of $400 million to push produc
tion of "tactical" weapons for
defense and power reactors for
peace. Private industry should
take the initiative in building
atomic power plants; warned
that government will if indus
try doesn't. Will expand research
on harnessing H-bomb reaction
for peacetime power.
Farm: Proposed a record out
lay of $5 billion to support farm
prices, meet soil bank payments
and otherwise aid farmers. Asked
for one-year extension of law
permitting sale of farm surpluses
for foreign currencies; also new
legislation authorizing barter of
surpluses with Iron Curtain
countries. Farmers who use all
the wheat they grow for feed
and seed should be - exempted
from marketing quotas. A new
corn program will be proposed.
Foreign Aid: Asked $2.6 bil-'
lion for military aid to Allies,
the same as this year; $1.8 for
economic aid, an increase of
$250 million. Program includes
$200 million for "Eisenhower
Doctrine" aid to .Middle East.
Continued aid, like heavy de
fense spending, is "simple mat
ter of self-preservation."
Schools: Congress failed last
year to enact his five-year, $1.2 !
billion program of federal aid
for school construction. Now he
asks that the same program be
completed in four years. Ear
marked $185 million for a
starter.
Housing: Five per cent inter
est should be permitted on VA
home loans. The rate, now peg-
i ged by law at 4V4 per cent,
won t attract enough lenders in
tight money market. The gov
ernment should buy more mort
gages through Federal National
Mortgage Association to provide
more funds for home builders.
Gas Bill: Recommended that
Congress enact a new version of
the natural gas bill which he ve
toed last year because of "arro
gant" lobbying tactics. The "ba
sic objective" of vetoed bill to
free gas producers from federal
public utility-type regulation
is desirable.
Natural Resources: Renewed
his endorsement of Frying Pan
Arkansas River development
project in Colorado asked
"prompt" decision by Congress
on developing Niagara power
project. Recommended TVA be
allowed to sell revenue bonds to
finance new power generating
facilities. Federal spending on
power irrigation reclamation
projects would total $1.5 bil
lion up $167 million.
Veterans: Legislative propos
als on veterans benefits being
prepared. Although a special
commission headed by Gen.
Omar N. Bradley recommended
cutbacks, the proposals will add
$100 million to veterans costs
in fiscal 1958. Prospective total
next year: $5 billion. -
Health: Urged federal aid for
medical and dental schools; in
creased funds .for medical re
search, hospital constructoin,
and other health programs;
again asked legislation to ex
pand and i improve private
health insurance programs by
authorizing risk-pooling.
Children: Proposed federal
grants to help train special
teachers for mentally-retarded
children; also grants to states to
combat juvenile delinquency.
Welfare: $1.6 billion for fed
eral contributions to state public
assistance programs which will
help 5 million old, infirm and
poor people next year. School
lunches will cost S100 million in
cash. $200 million in farm pro
ducts. This is all aside from
social security Insurance which
will pay oldsters and depend
ents $7 billion.
Labor: Unemployment insur
ance system should be "extend
ed and improved." More work
ers should be brought under
coverage of federal wage-hour
law.
Pension Plans: Recommended
legislation to require federal
registration of private employee
pension and welfare plans to
prevent abuses.
Mergers: Wants anti-trust law
tightened, with new provision
requiring advance notice to gov
ernment of proposed business
mergers.
Small Business: Should be
exempted from registration re
quirements of Securities and Ex
change Commission on stock and
bond issues totaling less than
$500,000.
Highways: New federal high
way program, financed by, spec
ial taxes, will go into high
gear with a proposed outlay of
$1.7 billion. This comes out of a
separate trust fund. Neither rev
enue nor expenses are reflected
in the budget.
Aviation: Federal aids to av
iation will cost $464 million, up
85 per cent. Higher costs reflect
efforts to improve airway safety
for jet age traffic. It is becom
ing "increasingly appropriate"
for airlines and other users to
help general taxpayers foot
these bills. No details given on
this hint at user fees.
Ships: The budget includes
funds for federal aid in con
struction of a new deluxe pas
senger liner which will be a
sister ship to . the SS United
States.
Winning Friends: Proposed a
S42 million boost in funds for
foreign exchange programs.
trade fairs, other "person to
person" contacts with other na
tions; also a $40 million in
crease for State Department to
strengthen its diplomatic staff;
$25 million more for U. S. In
formation Agency.
World Trade: Again asked
U.S. membership in the pro
posed Organization of Trade
Coopera t i o n; legislation to
"avoid unfair tax duplicatidns"
on U.S. businesses with over
seas operations.
Immigration: Will send Con
gress a special message propos
ing changes in immigration laws
to help Hungarian refugees and
others.
Women: "Congress should
make certain that women are
not denied equal rights with
men."
Voting Age: Should be low
ered to 18 by federal constitu
tional amendment. Only two
Record Budget Stirs Misgivings
Washington (U.R) Presi
dent Eisenhower's record budget
stirred misgivings among some
Republicans today and prompted
a Democratic charge that Repub
lican economy is a myth.
"Republicans are giving Demo
crats a real lesson in the art of
spending while at the same time
leading the country , to believe
that they are the guardians of
the purse strings," Rep. Thomas
G. Abenethy (D-Miss.) said. "The
Further Testimony
Waited in Trial of
ish Doctor
Eastbourne, England ''.U.R)
Chemists, nurses and morticians
waited to testify in Magistrates
Court today in the case of Dr.
John Bodkin Adams, accused of
murdering a wealthy widow
with "massive overdoses" of
narcotics.
The 57-year-old Adams is
charged with murdering Mrs.
Alice Morrell five years ago
with huge doses of heroin and
morphine. The widow left the
doctor a Rolls Royce in her will.
Four nurses who cared for
the patient testified in the sec
ond day of preliminary hearings
Tuesday that Adams ordered
frequent injections of narcotics,
some of which .were adminis
tered with a large syringe.
Argument Expected
The crown was also expected
to produce evidence that Adams
presented a prescription for
morphine in the name of Alfred
J. Hullett the day after Hullett
died. The prosecution was ex
pected to argue Adams needed
the morphine to replace an
overdose he gave Hullett and
which caused his death.
Adams is also accused of
causing the death of Hullett's
wife, who gave the doctor a
sports car shortly before she
died.
After testimony is taken from
a long string of witnesses, the
court will decide if the crown
has enough evidence against the
defendant to order him to stand
trial for murder.
President's budget is cold evi
dence that Eisenhower economy
is a myth."
Abernethy said the President
in four years already has spent
$39 billoin more than was spent
by former President Truman in
the four years of the previous
administration.
"And Truman was fighting a
war," Abernethy added.
Chairman Harry E. Byrd (D
Va.) of the Senate Banking Com
mittee said the 1958 budget will
result in increased inflation.
"The federal government it
self is contributing to the infla
tion by increasing federal budget
expenditures, federal trust fund
expenditures and by increased
commitments under federal
credit programs in which the
government insures and guar
antees private loans," he said.
This, he added, "is volatile
and dangerous."
'In times of peace and pros-
states Georgia and Kentucky
have done this on their own.
Territories: Again recom-,
mended statehood for Hawaii '
and Alaska, with proviso that ,
part of Alaska be set aside for
defense use. Asked federal vot- !
ing rights and "home rule" for
District of Columbia.
New Mansion: Asked author
ity to acquire an official resi-
dence for Vice President Rich-
ard M. Nixon, who now lives.,
in his own private home. !
Judges: urged creation of ad-
ditional federal judgeships to
ease logjam in courts. Wants au-!
thority to appoint younger 1
judge as helper when any fed- :
eral jurist reaching 70 won't re-:
tire.
Slum Clearance: Asked Con-
gress to provide another $250
million a year for two years to l
continue federal grants lor slum '
clearance. ' . i
Public Housing: No new units j
proposed ' beyond the 35,000 1
previously authorized.
sf FUN when savings earn more! g
sp: The generous eornings which we odd
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V:';W: and there s no substitute tor the sotetv
and convenience that are yours when
you save here.
Current Dividend
3h
Per Annum
FIRST FEDERAL
Savings & Loan Association of Medford
29 North Ivy Street
R. F. Kyle, President
perity, a sound budget requires
elimination of non-essential ex
penditures to the extent that
debt and taxes can be reduced,"
Byrd said.
Sen. Styles Bridges (R-N.H.),
ranking Republican on the Sen
ate Appropriations Committee,
praised Mr. Eisenhower's "em
phasis on fiscal integrity" and
the fact that the budget is bal
anced for the third year. in a
row.
But he said he "will make
every effort to pare it down in
every place possible."
Rep. Usher L. Burdick (R
N.D.) said of the proposed $71.8
billion spending total: "That's
more than the country can
stand."
Rep. H. R. Gross (R-Iowa) con
curred in a forecast by Treas
ury Secretary George M. Hum
phrey that failure to cut spend
ing and taxes will insure a de
pression. But he asked:
"Why wait until next year?
What's wrong with going it this
year?"
Chairman J. William Ful
bright (D-Ark.) of the Senate
Banking Committee said the
budget shows up the administra
tion as "hypocrites" for talking
about reducing expenses and
then proposing a record spend
ing program for expenses it
knew would be necessary.
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