Bonds To Finance College Classroom Construction Receives Support
Economic Menage Highlights '
Business Investment Rise
Expected for Coming Year
Washington - (UPD - High
lights of President Kennedy's
economic report to Congress
OUTLOOK
' No recession is expected in
1963. Business investment
should rise moderately, partly
because of the prospect of tax
cuts and reforms. Consumer
buying should increase and
Eovernment purchases are ex
pected to rise by $2 billion a
quarter. Housing construction
probably will continue at the
1962 level.
INDIVIDUAL TAXES
; The initial phase of a tax
cut should take effect July
1 to produce an immediate In
crease in take home pay. Tax
es should be cut in three
stages, ultimately reducing the
range of rates from tne cur
rent 20 to 81 per cent of. in
come to 14 to 65 per cent.
Taxpayers in the lowest
bracket would receive the
largest cuts. This would add
about S3 billion to expenda
ble consumer income in the
second half of this year and
another $8 billion a year if
the full range of cuts are el
fective by 1965.
CORPORATE TAXES
Corporate tax cuts should
add to individual Income
.through increased dividends.
Corporate tax cuts also are es
sential to stimulate rapid ex-
pansion and modernization of
industrial plants, which will
;result in industrial growth
and fuller employment. Re
placement ot capital is not
enough to increase the na
tion's capacity to produce.
There will be a recommenda
tion made to cut corporate in
come taxes, -retroactive to
Jan. 1 of this year, from 30
to 22 per cent. Proposals will
be made later to reduce, the
corporate tax rale from 52
per cent to 47 per cent to In
'crease investment incentives.
Effects On Rovanuas
; The proposed reductions
will ease the burden on state
and local governments be
cause increased growth and
prosperity will increase their
revenues from existing rates.
State and local governments
need Increased revenues more
than the federal government
Their spending has increased
243 per cent since 1B48. Dur
ing that period federal spend
iing increased 166 per cent,
State and local debts increas
ed by 335 per cent during the
period while the federal debt
went up only 18 per cent.
Fuluro Fiscal Policy
: Congress should continue to
work on a plan to give the
president authority for a
quick tax cut in case of a re
cession. It also should appro
priate the balance of the funds
authorized for programs un
der the public works acceler
ation act as an effective anti
recession Weapon.
Transportation
The need for regulation re
mains, but technological
changes permit greater reli
ance on competition between
transportation systems to in
crease service and efficiency.
The expanding federal high
way system, further develop
ment of airports, urban mass
transportation systems, im
provement of canals, rivers
and harbors are all urgent
problems needing Immediate
attention. Action is urgently
needed on the transportation
message of 1962 calling for
less regulation, consistent tax
ation and user charges and
support for metropolitan tran
sit facilities.
Institutions, Marktls
Studies are being made of
problems caused by growth of
corporate pension funds, the
role of federal lending and
credit guarantee programs,
and federal legislation and
regulations on private finan
cial institutions. These reports
will be used by the advisory
committee on labor-manage-mcnt
policy, the budget bu
reau, the treasury department
and various federal credit
agencies.
PRICE OF SILVER
Congressional action is
needed to eliminate' the re
quirement that the treasury
support the price of silver. In
order to release silver for
coinage purposes, Congress
also should repeal laws which
prevent withdrawal of silver
certificates.
EMPLOYMENT
LEGISLATION
Legislation will be pro
posed to increase the number
of workers covered and the
amount and duration of perm
anent unemployment compen
sation. There also will be a
recommendation for exten
sion of the $1.25 an hour min
imum wage to cover more
workers.
RESEARCH
Proposals will be sent to
Congress to develop a federal-
state engineering extension
service and to increase the
opportunities for civilian in
dustry to benefit from govern
ment financed research. Other
legislation will propose
changes In tax laws to in
crease business investment in
research equipment. Support
also will be proposed for re
search and technical informa
tion services and industry re
search associations.
EDUCATION
The President promised to
send Congress a number of
proposals to strengthen the
quality and increase the ca
pacity of the American Edu
cation system. These recom
mendations were not detailed.
Foreign Briefs
Jorusalom-fllPD-Jorusalom Allomtr Shims Touisia-Cohtn
will take over tha attornty gonoral's post (ormorly htld by
Gideon Hausnsi, according to rolloblo sources host.
Hausntr, one of tha prosacutors of exacuied Nasi Adolf
Eichntann, resigned as attorney ganaral last month oor a
disagreement with a Justice minister. Toussia-Cohen is a
former district court Judgt.
DEFENSE OF FASCISM' CHARGED AGAINST YOUTHS
Barls, Italy-WluPolica lodged charges of "defense of
Fascic" against 29 youths Sunday for allegedly singing fascist
era songs in tha streets hare.
Police said the group was arrested because its members
ware asked to stop singing and refused. Twenty-seven of
them were released later, but two were held for further
questioning.
ALGERIA TO WITHDRAW, TUNISIA MISSION
Algiers. Algeria-lllPlt-Fereign Minister Mohamad Khemistl
said Sunday night thai Algeria will wthdraw the head of
its diplomatic minion In Tuniia.
Tunsian President Habib Bourguiba recalled his am
bassador from Algeria Saturday. The day betore, Bourguiba
had accused Algerian Premier Ahmed Ban Bella of en
couraging Tunisian anti-goyarnmant plotters.
Petitions Filed With Rural Board
Remonstrance petitions
containing 50 signatures were
received today at noon by the
rural school board at its' reg
ular meeting. The petitions
were filed by a group of Bar
nett rd. area residents, It was
reported.
Rural school board mem
bers said that the signatures
will have to be verified by
the county elections depart
ment before further action Is
taken by the board.
The petitions were filed
after the rural school board
last week rejected a proposal
to consolidate Phoenix-Talent
and Mcdford school districts.
According to law the rem
onstrance petitions must be
signed by ten per cent or 50
persons, whichever is less. An
election will be called on the
questions following the check
ing of signatures.
CAB ISSUES RULING
Washington -IUP&- The Civil
Aeronautics Board ruled
Thursday that the $425 de
posit required for air travel
credit cards is illegal unless
5 per cent interest is paid on
the money. Travel credit it
self is not illegal, the board
said, but unless the cardhold
ers get interest, the plan is
"discriminatory and unduly
preferential."
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fej!j umjED J
Payment Would
Be Made From
Student Fees
Salem - (UPli - A plan to
construct college classrooms
by bonding and to repay the
bonds with student fees won
support today from House and
Senate leadership.
House Speaker Clarence
Barton (D - Couquillc) said it
would be a "sound practice."
"I am all for building any
buildings by bonding," he
said.
Senate President Ben Musa
(D-The Dalles) said, "I can't
see anything wrong with it if
It can be done in the frame
work of the law."
"Those who want to be
educated, let them ,ay for
It," be said.
The plan was suggested
Friday by Sen. Alfred Corbett
(D - Portland) and Rep. John
Mosscr (R-Bcaverton).
It would transfer a specific
amount of student tuition
money into a special fund to
be used to finance bonds for
instructional buildings, labor
atories, and other classroom
facilities.
Replaced With Grant
The money taken from the
tuition lund would be re
placed with a general fund
grant.
The plan is similar to the
one now used to build dormitories.
Corbett said today bonding
attorneys have been asked for
an opinion on the legality of
the proposal.
Barton noted telephone
companies, power firms, hos
pitals, and elementary and
high schools all rely exten
sively on bonding for capital
construction.
"I don't see why it doesn't
make equally good sense for
the state of Oregon," he said.
Referring to hesitation over
bonding, he added, "All we've
done is neglect needs because
of this holy cow."
Fine Suspended in
City Loitering Case
Foster Grcb, proprietor of
Foss' Billiards, 415 East Main
St., had a $25 fine suspended
in Mcdford municipal court
this morning on a charge of
permitting juveniles to loiter
on his premises after he was
found guilty in a trial before
Judge Justin Smith Jr.
The charge grew out of an
incident on the morning of
Oct. 22 when Clyde Fichtncr,
attendance officer for School
District 549C, found two 14-year-old
boys in the establish
ment. One of the youngsters, a
student at McLoughlin Junior
High school, testified that he
and his companion were
about half way through a
game of pool when Fichtner
entered the building. The
other boy is now in MacLaren
School for Boys.
Defense witnesses, how
ever, testified they did not
actually see the boys playing
a game. Grcb said he was out
of the room at the time, and
had no knowledge the boys
were In the building until
Fichtncr came to tell him
what had happened.
Lone County Report
Difference Noted in Rural,
Urban Juvenile Offenders
Ballot Tampering
Hearing Resumes
St. Helcns-llim-The Colum
bia grand Jury today was
scheduled to resume ils in
vestigation into charges of
ballot tampering in the No
vember sheriff's race In the
county.
The Investigation started
last week. Republican Roy
Wtlburn was declared winner
of the election against Demo
cratic incumbent Spencer
Younce by two Circuit Court
judges after they voided a recount.
Unseen Audience
Nabs Three Burglars
East Los Angeles - flim -Three
burglars worked for
two hours In the prc-dawn
loading $40,000 worth of ap
pliances from a trading stamp
warehouse into a truck.
They drove to a private
home where they and two
persons charged with receiv
ing stolen goods were arrest
ed by 12 sheriff's deputies
who had watched the robbery
and followed the truck by
helicopter after receiving a
tip-
Portland State Campus
Enlargement Proposed
Portland - HIT - Dr. Bran
ford P. Millar, president of
Portland State college, today
proposed to more than double
the fast-growing school's cam
pus area.
Dr. Millar made the pro
posal to the State Board of
Higher Education here. He
asked thnt it approve expand
ing the campus to 22 blocks.
The 5.500-jtudent school now
occupies nint blocks.
Washington -tOTO- A report
submitted to a presidential
committee suggested today
that juvenile offenders in
rural and urban areas are
different breeds of cats.
Dr. Kenneth Polk, director
of a group planning an all-out
attack on youth problems in
Lane county, Ore., told the
President's C o m m 1 1 tee on
J u v e nile Delinquency and
Youth Crime that a different
approach was needed in rural
areas.
"My Impression is that in
rural areas a large propor
tion of what is called delin
quency could be more accur
ately called hell-raising," Dr.
Polk said.
"The boys here (in Lane
county) don't consider them
selves delinquent, in fact they
are insulted if you use that
term, he said.
'To them, a delinquent is
one who wears a black leather
jacket, has a switchblade
knife, has long hair combed
into a ducktail, and wears
motorcycle boots.
Different Meaning
'The urban slum youths
knows well that his behavior
is criminal," he said. "The
youth in the rural area may
have serious problems, and
may get into a lot of trouble,
but it has a different meaning
to them."
All present data, he said,
Indicate a great increase in
delinquency in Lane county
and other rural areas.
"Yet these problems are
very different than those
found in the big cities," he
said. "We don't have narcotics
use, or large fighting gangs
they're Just nonexistent."
For example, he said, sta
tistics show that the top youth
offense in Lane county
drinking accounts for 22.5
per cent of the juvenile ar
rests in the area. In Loa Ang
eles, he added, drinking is far
down the list, accounting for
only two per cent of court
referrals.
Difference In Perception
'I don't think there's any
actual difference in the
amount of drinking by juve
niles in the two areas," Dr.
Polk said, "I think there's
just, a difference in the per
ception of the problem.
"In Lane county, drinking
is considered serious enough
to warrant court attention. I
suspect that in Los Angeles, if
the boys were just drinking,
the police don't worry too
much about it."
The Lane county youth
study board, which Dr. Polk
directs, has been given a
$129,000 grant by the Presi
dent's committee to study
youth problems. Sim liar
grants have been made to 14
larger cities across the
country.
HAS HEART ATTACK
London-OJPD - William Car
dinal Godfrey, 73, Roman
Catholic primate of England,
suffered a mild heart attack
Saturday night but later show
ed some improvement, accord
ing to a statement from the
cardinal's residence.
92 Spend Week End
In Underground
Fallout Shelter
Livcrmore, Calif. - (UPD -
Ninety-two men, women and
children spent 36 hours in an
underground fallout shelter
near Livermore during the
week end. They emerged Sun
day, cold but otherwise healthy.
The experiment was the
first full-scale shelter drill of
Survival Associates, Inc. Tak
ing part were 50 adults and
42 children, ranging in age
from five months to 65.
Dr. Duane Sewell, a nu
clear physicist at the Univer
sity of California's Livermore
Elderly Couple
Burned at Portland
Portland - (UPD - A fire at
an apartment house severely
burned an elderly couple,
caused injuries to three fire
men and made 10 persons
homeless Sunday.
The fire razed a two-story
frame apartment building.
Damage was estimated at
$15,000. Cause was believed
to be an overheated oil stove.
Ellis Richie, 76, and his
wife, Mary, 70, were hospital
ized in serious condition with
burns.
Tshombe's Last
Stronghold Falls
Kolwczi, Katanga, The
Congo - llirn - Katanga's fight
for independence from the
Congo ended today with the
fall of President Moisc
Tshombe's last stronghold of
Kolwczi.
A column of United Na
tions troops advanced to the
center of the city without a
shot being fired Tshombe's
forces made no attempt to
carry out their threat of sabo
tHgc to mining installations
that produce 80 per cent of
the world's cobalt.
The remnants of Tshombe's
army cheered the UN troops
as they entered the city be
hind a spearhead of four
American built tanks and
three armored cars.
Bankruptcy Petition
Portland - IWD - A former
owner of an Albany bowling
alley and his wife have filed
for bankruptcy In Federal
Court here.
Mr. and Mrs. Carroll Gene
Richardson filed petitions list
ing $227,700 in debts and
$3,700 in assets with $3,230 as
exempt.
Radiation Laboratory and vice
president of Survival Associ
ates, pronounced the experi
ment a complete success.
"I wouldn't hesitate to take
150 people in there for three
weeks," he said. The 25 par
ticipating families entered the
shelter at 8 p.m. Friday and
came out at 8 a.m. Sunday.
The shelter, which cost $50,
000, is 125 feet long and 25
feet wide, with a concrete
floor, steel ceiling and 34 one
family compartments measur
ing seven by seven feet.
The shelter temperature
ranged between 55 and 62.
The ground temperature out
side was 42 when they emerg
ed Sunday. Individual fam
ilies used hot plates to cook
their own meals, consisting of
cooked wheat, raisins, chicken
noodles, coffee and canned
milk.
Most of the participants In
the experiment are attached
to the Livermore laboratory.
Family memberships in the
corporation cost $1,600 plus
$10 a month dues for taxes
and upkeep.
Chemicals Feature
Mixed Stock List
New York tUPD Chemicals
featured a narrowly mixed
stock market today.
Kodak and Allied gained
about a point each in the
chemicals but American Tele
phone dropped more than 1 In
the blue chips and IBM and
RCA lost about 2 and 1V4, re
spectively, in the electronics.
Steels were narrowly mix
ed and Chrysler rose close to
a point in an irregular motor
group. Xerox was a heavy
loser, off around 3.
Universal Oil dropped
roughly 1 In its group but
Richardson-Mcrrcll tacked on
nearly 2 in the drugs. Delta
lost about 1 in the airlines
despite rumors of a stock
split, but McDonnell rose
nearly l'i in the aircrafts on
higher earnings.
Khrushchev Said Sure
Or Place in Heaven
Berlin - (UN) - An Algerian
delegate to the East German
Communist party congress
said today that Nikita Khru
shchev. Russia's atheiest pre
mier, "is sure of a place in
heaven."
Khrushchev, attending the
congress, chuckled quietly
when the Algerian, making a
brief speech to the delegates,
said: "Khrushchev may not
believe in God. but he is sure
of a place in heaven anyway
because he maintained peace
in Cuba."
Regional Edition
Medford,
Page 2A
Tribune
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