State Income Tax Reform
Bill Clears H
ouse on 31-28 Vo
Kennedy Says
Budget for 1 962
Will Be in Red
Defense Spending To
Bring Deficit Higher
Washington (UPD President
Kennedy told Congress today
that the 1962 budget would
run $1.8 billion in the red and
the deficit would be even big
ger when he unveils extra de
fense spending next week.
Excluding additional de
fense outlays, Kennedy esti
mated that spending for the
fiscal year starting July 1
would set a peacetime record
of $83.2 billion. He forecast
.revenue would reach an all
time high of $81.4 billion.
White House sources said
$300 million would be added
to the $42.9 billion defense
program recommended by
former President Dwight D.
Eisenhower merely to com
pensate for low estimates by
Eisenhower. .
That would make the 1962
budget deficit $2.1 billion. Ex
pected proposals for addition
al military procurement and
readiness are likely to in
crease the deficit still more.
Tax Cui Unlikely
In his budget message to
day, Kennedy left open the
possibility he might ask Con
gress for a temporary anti
recession tax cut. But this is
considered a very dim pros
pect. The President said Con
gress should continue corpor
ate and excise levies sched
uled to drop or end on June
30. He said he wquld make
other tax proposals later to
stimulate business investment
"and achieve greater tax
equity."
Kennedy proposed an in
crease in some veterans' bene
fits and reviewed other pro
posals he has made for step
ping up non-military pro?
grams, But he said these alone
were not responsible for put
ting the 1962 budget in the
red.
He estimated a $2.2 billion
deficit for fiscal 1961, which
ends June 30, with revenue
at $78.5 billion and spend
ing at $80.7 billion. Eisen
hower had forecast a $79 mil
lion surplus for 1961 and a
$1.5 billion surplus for 1962.
Blasts Ike Budget '
In both budget years Ken
nedy sharply criticized the
Eisenhower administration for
being too optimistic about
revenues and business condi
tions, and for understating
probable spending.
Kennedy said his adminis
tration, in budget planning,
would seek to meet the "es
sential needs of the nation."
He promised he would "not
allow expenditures to rise of
their, own momentum."
"It is my determined pur
pose to be a prudent steward
of the public funds-to obtain
a dollar's worth of results for
everv dollar we spend," he
said.
The President endorsed Eis
enhower's request that Con
gress boost postal rates by
S843 million a year to put the
Post Office on a self-supporting
basis. This would mean an
increase of one cent in the
letter rate and higher fees for
second and third class mail.
Kennedy renewed his earli
er request that Congress pro
vide more funds for tax en
Planning Commission Denies Request
For Tennis Courts, Swimming Pool
The Medford Racquet club
will have to look elsewhere
for a place to build its tennis
courts and swimming pool.
Medford's city planning
commission at a special meet
ing last night unanimously re
jected the club's request for
a zoning variance to build and
operate a tennis facility at
217 Modoc ave. The action
came after nearly 20 residents
of the Modoc ave. area spoke
in opposition to the request.
The city council could over
rule the commission, but this
would appear unlikely. One
of those speaking against the
request last night was Coun
cilman Stanley Stark.
Promoters of the tennis
club had proposed to build
six tennis courts and a swim
ming pool on a 9'i-acre Mo
doc ave. tract. They would
have used an existing resi
dence on the property for a
clubhouse.
Before consideration of the
matter could get under way
last night, the commission had
to delay the start of the meet
ing for nearly an hour while
it waited for a majority (four)
of its members to show up.
Three members - Charles
Crary. Elwood Hedberg Jr.,
fnd Jack Edson - never did
how up.
Carl Brophy, 264 South Mo
forcement to "increase the
collection of federal revenues
and help curb corruption
and out of government,
racketeering and organized
crime."
He said he would ask Con
gress in early May to increase
the ceiling on the national
debt, temporarily $293 billion
and scheduled to drop to the
permanent level of $285
billion on July 1.
Borrowing to cover the 1961
and 1962 budget deficits will
lift the national debt to $287
billion by next July and to at
least $289 billion by July,
1962, officials said.
Kennedy's spending total of
$83.2 billion for 1962 topped
Eisenhower's proposal of $80.9
billion.
President Signs
Bill To Extend
Jobless Benefits
Washington (UPU- President
Kennedy signed into law to
day the first of his major anti-recession
bills passed by
Congress, setting in motion a
$1 billion program for extend
ing jobless pay benefits to the
unemployed.
Under the program, an es
timated 700,000 unemployed
workers were expected to be
gin receiving the extra help
within two weeks.
Immediate Operation -
Labor Secretary Arthur J.
Goldberg planned to put the
new program into operation
immediately by signing agree
ments with representatives of
fromZO to 25 states.
The program which is on a
temporary basis calls for up
to 13 weeks of additional ben
efits to the jobless who have
exhausted their regular un
employment compen s a t i o n
since last June 30 or will do
so 'before April 1, 1962.
Three Million Eligible
However, no idle workers
would be allowed to receive
more than 39 weeks of the
combined federal-state bene
fits. An estimated 3,125,000 of
the unemployed are expected
to receive the added money
during the life of the law.
Kennedy has said the pro
gram should give the economy
a big shot in the army by
boosting the nation's purchas
ing power.
Redsone Rocket
Firing Successful
Cape Canaveral, Fla.-OJPD-
American today successfully
fired a Redstone rocket with
a dummy man-in-space cap-
sure 115 miles up in a special
test designed to pave the way
for this country's first manned
space flight, probably in May.
The shot, one of at least
two the Federal Space agency
will try before letting an as
tronaut have his chance, was
designed to give scientists a
better idea of how the Red
stone performs with a one-ton
space capsule on its nose.
doc ave., led the opposition to
the request. He introduced
approximately 20 of his neigh
bors, all of whom opposed the
proposed site of the tennis
club.
Brophy said he was not op
posed to the tennis club as
such, but that he is opposed
to the noise, traffic and pos
sible nighttime activity that
the club might bring with it.
He expressed concern for the
safety of the children in the
neighborhood, and added that
he and many other persons
had moved into the area In
order to get away from such
things as noise and traffic.
Brophy suggested that the
club build on vacant land out
side the city.
Not Open at Night
Don K. Auxler, one of the
promoters of the club, called
the comments about noise,
traffic and niEhtlife "conjec
ture." and said "parking is
not a problem, noise is not a
problem, liquor Is not a prob
lem and nightlife is not a
problem." It was pointed out
that the club would not be
open for nighttime activities.
Auxicr supplied the com
mission members with fact
sheets, which, he said, at
Jsted to the "tremendous"
growth of tcnnlc clubs
throughout the west. He cited
Kiss in Traffic
Causes Accident;
Results in Ticket
Long Beach, Calif. -WPP-Police
gave Kathleen Eileen
Ream, 19, a ticket for
kissing her boy friend be
came the kin caused a traf
fic accident,
Mike Muniterman, 20,
startled by the impulsive
mooch, lost control of his
auto Wedneiday night and
smashed into a parked car.
He received minor cuts.
Police cited Miss Ream
for Interfering with a driv
er when she admitted her
kiss caused the crash.
Oregon Senate
Votes Boardman
Park Legislation
Salem -(UPU-The Senate to
day unanimously approved
the Boardman Industrial park
legislation putting Oregon, in
Gov. Mark Hatfield's words,
'solidly into the space age."
The bills went to the gover
nor.
The measures permit Ore
gon to lease the northeast
Oregon site to Boeing Air
plane Co. of Seattle.
Hatfield had pushed hard
for legislative sanction. There
was grumbling from some
Democrats.
One of the bills allocates
$900,000 to pay costs of mov
ing the Navy's range at
Boardman to Wagontire in
Lake county, plus other ex
penses. The second bill empowers
the Oregon Land Board, head
ed by Hatfield, to issue a
lease.
Straub Complains
Although he voted for the
proposal, Sen. Robert Straub
of Eugene complained of what
he described as a "lack of
guarantees" in the proposed
80-year lease.
He said the lease as il
now stands is "not in the best
interests of Oregon."
The Oregon Democratic
chairman termed the $60,000
a year rental that Boeing will
pays as "very modest, to say
the least." He said he couldn't
see the justification for haste
on aJease. . .
Senate Republican Leader
Anthony Yturri of Ontario
said Straub's fears are "un
warranted." He took Issue with a state
ment that there are livestock
operators in Eastern Oregon
who would pay $60,000 a year
to use the Boardman range
lor grazing.
Yturri, who lives in Eastern
Oregon, says this isn't so.
Straub urged Hatfield and
the board to "exercise sound
judgment" in finalizing the
lease.
Large Trucks Are
Involved in Mishap
Two large trucks collided
head-on this morning while
going in opposite directions
on the Crater Lake highway
bridge across Bear creek.
There were no injuries, but
both trucks had to be towed
away.
Medford police said a truck
operated by William Victor
Kidson, 32, of 4428 South Pa
cific highway, was headed
eastbound across the bridge
when it collided with a west
bound log truck and trailer
operated by Eldon Carl Decn,
35, of 1811 Orchard Home dr.
No citations were issued. The
accident occurred about
8:45 a.m.
several instances In other ci
ties where clubs had located
In residential areas, and soon
the people living nearest the
club became its "best mem
bers."
A few persons did speak In
favor of the request, Includ
ing Dr. R. E. Hlbbs, 190 White
Oak dr.
Clarifies Vote
Commission Member Wal
ter Higgins said he was voting
against the club s request be
cause "the great preponder
ance" of the residents In the
area oppose It.
Commission Member Don
aid Walters, on the other
hand, said he does not think
the commission should let a
small part of the community
"dictate what should be done
but added that he opposed
the request because of the
traffic the tennis club would
create.
Commission Members Har
old Snodgrass and Larry Hor-
ton also voted against the
club's request.
In other business, the com
mislon recommended to the
council that property located
northeast of Jackson St. and
Central ave. be rezoned from
limited commercial to com
irw;cial. The $1 million Al
pine Village Is building at this
location.
RUSSIA
0fl n n (n(o
stUllXl lLlyJ2)
Regional Edition
Medford
22 Pages
NEARING COMPLETION A $279,927 addition to the Ash
land sewage treatment plant is nearing completion, accord
ing to Mel Morgan, Graff and James project superintend
ent. Morgan said the system should be in operation in about .
United States
Forces Readied
For Use in Laos
Washington -(UPU- Powerful
U.S. sea, land and air forces
are being put in readiness to
back up President Kennedy's
determination that Laos will
not fall to the Communists.
The President made clear
Thursday night that he want
ed a peaceful solution to the
Laos crisis but would not
flinch from a military "re
sponse to coninucd aggres
sion, such response being
taken in concert with South
east Asia Treaty Organization
allies.
Military forces are being
made ready for whatever re
sponse may be called for.
Ground Units Available
A forward ring of strength,
so far chiefly naval and Ma
rine with some airlift support
from the Air Force, is being
formed in the Southeast Asia
area near the land-locked
Laotian kingdom.
Ground forces quickly
available are two regiments
of Marines and a battle group
of 1,600 Army paratroopers
on Okinawa. Also on Okin
awa there is an Army special
forces unit of men trained in
guerrilla tactics. Marine and
Air Force combat planes are
available on bases through
out the Far East. In the Unit
ed States, Air Force units and
alert forces of the Stategic
Army Corps arc available for
deployment to the crisis area
in hours.
Comprises 7th Fleet
The naval buildup In the
South China Sea comprises
units from the 7th Fleet
which has 130 ships including
four aircraft carriers.
In contrast with previous
crises in the Orient, U.S. mili
tary moves are being carried
out with an attempt at official
secrecy even though the ob
vious Intent is to convince
Soviet Premier Nlkita Khru
shchev that the United States
is not bluffing.
WEATHER
FORECAST: ronalrir ruhlr !
cliMirilne and wldHv UT(i
thnwrn t'int(lit. Partly rtondyj
ftatiirrlav. Low lonijcht 3ft. High
Saturday IS. !
Temp..
IIUhMt Yfiirrdav 55
l.owfii this Mornlnc 41
Prfc. to 10 am. Today .23
Our Skies Tonight
Simit Indav - 8:2(1 p.m.
Siinrlsr tomorrow .... S:07 a.m.
Mnnnct tomorrow .... 2:31 a.m.
Full Moon March 31
At mtdnlfht tnnlrht CaMor and
Pollux (th Twlni) will be
tlrhl ahnte the Moon and the
planet. Man. The bright atar to
the left of the Mion will be
Proeyon.
MEDFORD, OREGON, FRIDAY, MARCH 24, 1961
Holmes Says Home
Rule Charter Could
Give Broad Powers
District Attorney Alan B.
Holmes told the Jackson
County Home Rule Study
committee last night that he
favors a home rule charter
for this county but only as a
broad instrument.
'It would be fine to have a
home rule charter to provide
broad county legislative
rights," Holmes said. "But, 1
don't think the people as a
whole or the two political
parties would accept great
sweeping changes such as ap
pointive county offices and a
five-man board of supervisors
or county commission."
Holmes added that the com
mittee should not think that
as soon as the county has
home rule that it would need
a county consel to concentrate
on legal work outside crimi
nal matters. However, the
charter would provide for
amendments so It can be
amended in keeping with the
county's needs as they occur.
"I do not think that the dis
trict attorney should over be
appointed," Holmes empha
sized. "A man In this position
becomes stereotyped if he re
mains in this Job too long and
sees only one side of the
fence."
Other reasons Holmes op
posed appointing county offi
"Shall We Resume Testing Human Beings?"
one month. Construction started last July. Included in the
addition are a barminutor, primary clarifier, digestor and
control building, trickling filter, paving and curbs.
cials were: more people learn
about county offices and their
heads at election time, which
provides for more awareness
and participation in govern
ment; and appointed officers
tend to stagnate In their Jobs.
The home rule committee
last night agreed to halt gen
eral interviewing after hear
ing from two more persons.
One of these will be Eric W.
Allen Jr., Mall Tribune man
aging editor, and the other
Lane county's administrative
assistant. However, people
who request an interview
with the committee will not
be denied, it was agreed.
Home rule committee rep
resentatives will discuss their
program at Medford Chamber
of Commerce roundtablc Mon
day noon, Committee Chair
man Mrs. Thomas Rutter said.
Two Dry Kilns
Destroyed at Turner
Turner, Ore. ttll'll -Fire de
stroyed one of two dry kilns
at the Burkland Lumber Co.
here Thursday. Damage was
estimated at $75,000.
POST OFFICE PLANNED
Washington -(DPI)- The Post
Office Department today an
nounced plans, to build a new
post office at La Grande, Ore.
TpnnnMnn
Lru
56th Year Price 10 Cents
Tribune
No. 2
- MJf
Laos Accuses
North Viel Nam
Of Moving Troops
Vientiane, Laos (UPD The
Laotian government accused
Communist North Vict Nam
today of sending nine more
battalions Into Laos where
Premier Prince Boun Oum
said up to 19 Communist Vlet
minh battalions already were
battling government forces.
The actual number of troops
Involved was uncertain since
Western military standards do
not apply In this Buddhist
kingdom. Normally an equiva
lent U.S. Army battalion is
800 men.
Laotian battalions usually
are far under U.S. battalion
strength and the over - all
figure could run anywhere
from 10,000 to 20,000 men.
A government communique
reporting new massive inter
vention by Laos' Communist
neighbor said six Vietminh
battalions had driven into
rebel - held Xicng Khouang
Province In central Laos and
another three were fighting
in central Laos.
Tlie communique said the
Royal Laotian army had suc
cessfully repulsed all Com
munist attacks and Inflicted
"heavy losses against the
enemy."
Police Car Loses
Wheel; Axle Broken
Officer Richard Hamilton
of the Medford police depart
ment thought his patrol car
felt a little funny as he round
ed a corner In the downtown
area Thursday evening. No
wonder - a wheel had come
off.
After skidding harmlessly
for approximately 100 feet,
with only the hand brake
working, Officer Hamilton
was finally able to pull hi
patrol car to a halt.
Inspection showed that the
rear axle had broken and the
left rear wheel had come off
the car. Police said the axle
had apparently been broken
for some time.
TRUCK ACCIDENT
City police were summoned
at 12:35 p.m. today to Investi
gate a logging truck accident
at Crater Lake highway and
Biddlo rd. It was reported that
the logging truck had turned
over. No details were avail
able. YOUTH ELECTROCUTED
Portland -HiPll-Wllllam Dean
Jfrsser, 17, Portland, was elec
trocuted Thursday night after
climbing up a power pole.
Intervention by
Allies Possible,
Conference Told
Course May Be in
Hands of Kremlin
Washington -0IP1I- Presi
dent Kennedy today sought
the support of India's Prime
Minister Jawaharlal Nehru
in his effort to get Russia
to agree to a cease fire in
Laos.
Washington -tUPD- President
Kennedy has warned Russia
to end the Soviet-backed re
bellion in Laos or face the
possibility of Allied interven
tion.
The President told a ten
sion-packed news conference
Thursday night , that the fu
ture course of world affairs
might depend on the Krem
lin's reply to a Western plea
for a truce in Laos. The news
conference was televised and
broadcast to the nation.
No Soviet Response
There was no immediate re
sponse from Moscow to the
appeal for a cease - fire de
livered to the Kremlin by the
British Thursday
any details of planned action
i. ho r-nmmni n
if the Communist assault
against the royal Laotian gov-!
eminent continues. But his
grim statement came against
a background of - American
military movements toward
tile area.
He said he was certain that
the American people would
back him in his firm decision
to support without reserva
tions the independence and
Integrity of the small but
strategic Asian country.
SEATO To DIicuji Step
Kennedy said plans for pos
sible action In Laos by tho
Southeast Asia Treaty Organi
zation would be considered at
the annual meeting of SEATO
foreign ministers which opens
Monday in Bangkok.
Secretary of Stale Dean
Rusk left for the Bangkok
meeting early today after a
final strategy conference with
the President.
Confidence In Partners
Rusk said he was "confi
dent that our partners" In
SEATO would honor their
obligations to defend the
treaty area, which includes
Laos, against any aggression.
While warning Russia and
Asian Communists that the
United States would not
shrink from action, the Presi
dent emphasized anew his
hope for a peaceful solution.
Suit Seeks Damage
To Crop from Hail
A complaint has been filed
In Jackson county circuit
court by the Oregon Orchards
Inc., Carpenter Hill rd., for
hall damages to its pear crop
last year.
The suit has been filed
against the Insurance Com
pany of North America with
its hall department in Spo
kane, Wash. According to the
complaint the local orchard
Insured Its crop with the com
pany against hail loss or dam
ages April 1.1, 1060.
Three storms, on April 13,
May 21 and 22, did $20,758
damages to the crop, which
the orchard Is trying to re
cover. The orchard also seeks
$520 surveying costs that they
Incurred determining the ex
tent of damage to the pears.
Kennedy's Handling of
Laos Crisis Acclaimed
Washington - RJPD - Presi
dent Kennedy's handling of
the Laotian crisis won acclaim
today from allies abroad and
key leaders at home but there
was no immediate response to
his "hands off" warning from
tho Kremlin.
Told To Stop
In a news conference state
ment Thursday, Kennedy
virtually told the Russians to
stop backing rebellion In Laos
or face possible Free World
Intervention In the situation.
The President declared Form
er President Dwight D. El
sciower strongly endorsed
Kennedy's actions. He ex
pressed belief that his Demo
Backers Admit
Measure Might
Unbalance Budget
Portland Democrat
Casts Key Vote
Salem - (UPD - A battle
scarred tax reform bill to
slice 10 per cent from stalo
income taxes slid through tho
House today in spite of ad
missions by its backers that
it might unbalance the state
budget.
Key vote in the tense final
31-28 roll call came from Rep.
Edward Whelan (D-Portland),
who followed Rep. Sidney
Lelken (D-Roseburg), in chang
ing his vote from no to yes
in order to save the bill.
Whelan said he reversed
his vote in order "to expedite
the conclusion of this session."
The bill, amended three
times by the House Tax Com
mittee, headed straight for a
hostile Senate Tax Commit
tee, most of whose members
already have announced their
unfriendliness toward such a
change.
Could Be Short
Ways and Means Chairman
Clarence Barton (D-Coquille),
a chief backer of the bill, con
ceded the $20 million revenue
reduction could leave the
1961-63 budget short of funds.
"We do not know what tho
totnl level of appropriations
will be at this time," he ad
mitted. The vote crossed party lines.
The measure, HB1001, eked
by after both supporters and
opponments described it as
carrying at least some of the
impact of a sales tax, since
it would tax wages at low
earning levels.
Barton said the bill's ap
proach would "forevermora
lay a sales tax and the neces
sity or fear of a sales tax to
rest in Oregon."
Broadens Tax Base
The bill would slash state
Income taxes at most levels by
10 per cent, at the same timo
broadening the tax base by
taxing some low bracket earn
ers for the first time.
Instead of the present $600
exemption from net income,
the bill would permit $20 to .
be subtracted from the final
tax bill for each dependent,.
Everyone except persons earn
ing less than $600, however,
would have to pay a mini
mum tax: '
Deductions would be al
lowed only for charitable con- .
tributlons amounting to at
least three per cent of the in
come, and for extraorainary
casualty losses.
Voting Told
Voting for the bill- were
Rons. Atlyeh, Back, Barton,
Bateson, Benedict, Cannon,
Chappel, Elder, Elfstrom,
Evlck, Eymann, Fade ley.
Fisher, F 1 1 1 c r a f t, Gordon,
Halstvt. Heider, Holmstrom,
Howe, Hoyt, Kelsay, Kirkpat
rick, Leiken, Monaghan,
Montgomery, Morgan, Peck,
Stunz, Turner, Weatherford,
and Whelan.
Voting against the bill wer
Reps. Anderson, Annala, Baz
ett, Bradley, Chulnard, Davis,
Dellenback, Dooley, Elliott,
Gallagher, Gwinn, Hand, Han-
sell, Howard, Hunt, Ireland,
Lang, Layman, Maher, Mc
Clollan, McKinnis, Musa, Orr,
Raymond, Rogers, Smith, WU
dcrman, Duncan.
Reps. Lelken and Whelan
originally voted against th
bill but changed their votes.
Police Investigate
Assault, Robbery
A motorist wandered into
the Rogue Riviera restaurant
near Gold Hill last night after
being assaulted and robbed by
an unknown hitchhiker, state
police reported today
State police are Investigat
ing. Donald E. Chadburne,
43, formerly of Lennox, S.D.,
apparently was hit across the
nose with a large bolt found
in his car, officers said. Ha
said he was robbed of $100.
The Injured motorist was
taken to Sacred Heart hos
pital by Medford Ambulance
Service where he was report
ed In fair condition.
cratic successor has made it
clear the United States "Is
not going to be pushed
around." l.
Kennedy's firm stand was
warmly endorsed" by Brit
ish Prime Minister Harold
Macinillan whose government
delivered the cease-fire noto
to the Soviet Union.
In tho Senate, Democratic
Leader Mike Mansfield of
Montana, said Kennedy la
"prepared and determined to
use every Instrument of pence
to deal with the situation in
Laos." .
Senate RepubllcB-is echoed
support of Mansfhild's statement.
5'
r.
f!