MONDAY. JUNE 30.
HERALD AND NEWS. KLAMATH FALLS. OREGON
PAGE 1 B
. J 5 5 1 Z Z. IC y I "T" Z UUTII WMUJJfMWinOII
' '11 MM"Ti:T:n'T5Il
"Hrae fir
" II I 1 1 F I M I M M4 I Mill Ml qr I feESH
-m mm mMM n rm hjuuh or
l
Peru Blaming Financial Troubles On Lack Of U.S. Buying, Too High Tariffs
LIMA. Peru IAP)-Peru. the
Andean Mountain land of the once
powerful Ineas, is facing financial
crisis. Officials blame the United
States.
They say there would be
no
AFTER JULY FIRST all roads within the boundaries of the Klamath Indian Reservation ex
cept those shown on the above map will be closed to travel by the public. Travel will
be permitted without permit on all black top highways, on the US 97-Military Crossing
to Silver Lake, on the US 97-Lamm Road to Silver Lake, the Sprague River-Hildebrand
road, the road to Kirk; Jack Creek bridge, Jackson Creek, Yamsey Ranch to Sprague
River highway near Braymill and on Lone Pine Junction to Box I. Permits to enter any
closed area for business reasons will be issued motor vehicle operators at the Agency
forestry office dispatcher's office.
Steelworkers
Get Pay Hike
PITTSBURGH (AP) Basic
steelworkers receive a wage in
crease tomorrow that likely will
be felt by most Americans before
tor long.
The increase is the final install
ment in a three-year contract.
The union estimates the pack
age boost at 13.2 cents hourly, the
companies at 16 cents. Steelwork
ers now earn about $2.77 hourly.
USW members will also receive
a 4-cent hourly raise figured on a
rise on the government's cost-of-living
index.
Steelmakers, who had hoped the
union would forego the final in
crease, estimate the boost will
add up to 25 cents hourly to the
cost of production.
All are agreed an increase in
the price of stce! will be neces
sary. None of the major producers
has said just how much.
U.S. Steel Corp. normally sets
the steel price pattern, but it has
said it would make no decision
until the economic situation clari
fies. This was taken in many quar
ters to mean that Big Steel would
wait for a business improvement
before making price adjustments.
The present composite price of
steel is estimated at $155 a ton.
Steel price increases often are
followed by boosts in the costs
of steel-made consumer goods,
such as autos, appliances and
even toys, nails and hairpins.
New Fiscal Year Will See
Uncle Sam Pushing Deeper
And Deeper Into Huge Debt
WASHINGTON (AP)-For Unclei
Sam, tonight is New Year's Eve.
He won't be celebrating, though,
because the new fiscal year will
carry him deeper into debt than
ever before.
Red ink spending caused by the
business recession and the Sovietl
scientific-military menace threat
ens a fiscal 1959 deficit of about
11 billion dollars possibly closer
to 12 billion. That is more than at
any time since World War II.
The national debt is sure to push
past its December 1955 record
high Of $280,821.000.000.
GRANGE NEWS
Novelist Placed
In Hospital
NEW YORK (AP) Novelist
Thomas Chamales was in Belle
vue Hospital today for psychiatric
observation.
City Magistrate Joseph Martinis
ordered Chamales committed as
GREENHORN
YREKA A variety of dance
routines, songs and readings
marked the program presented on
the occasion of the 40th birthday
anniversary of the G r e e n h o r n
Grange on June 21 at the Green
horn Grange Hall at Yreka with
nver 100 nersons present including
guests from Castella, Gazelle and
Scott Valley.
The program for the event was
nresented under the direction of
Mrs. 11a Wheeler of Montague, lec
turer of the Greenhorn Grange.
The program included Karen Ad-
ele s Dance Studio presenting ine
Gav Chicks." and "The Way," by
rianrers Marcia Landon and Can-
dv Holman. Two modern ballet
routines. "Big Beat." and "Rock
Right," performed by Marjorie
.lames. Susan Harris and Mimi
Behnke.
Past master of Castle Grange
Mrs. Ora Wilder, gave a reading.
"Recipe for a Successful Grange,"
followed by Jerry Lemos Din
ner, whistling and singing a va
riety of songs accompanying her
self at the piano. "Essay on Man."
Another reading, was done by
Agnes Swigart of Montague.
In commemoration of dairy
month, 16 of the dairywomcn and
men present sang several group
songs of a lighter theme.
Larry Betschard and Leslie Lew-
ellyn. two members representing
the Gazelle Youth Grange per-i
formed on their accordions. Beth
Russell, Linda Badgley. Sandy'
Hayes, Bobbie Bridwell and Sandy
Fiock, also members of the Ga
zelle Youth Grange, performed
two dances. Two other members of I
the group present as guests were!
Tom Booher and Florence Kearn-.
ey, accompanied by the leader,!
Lorena Lewellyn.
Honors were bestowed on chart
er members and past masters with
the presentation of corsages or
boutonnieres. Among those honored
were Mrs. Daisy Bry and Fred
Caldwell, who are not only chart
er members but past masters as
well: charier members Mrs. Laura
Cawley and Mrs. Carrie Bills: past
masters George Calkins and Wil
lard Freeman: Master Bryan Can
non, lrma Shelley, and Home Eco
nomics Chairman Florence Burg
ess. Guesls present were Mr', and
Mrs. Robur Costello. Mr. and Mrs.
G. Davis. Mr. and Mrs. Robert
PeNure and Mr. and Mrs. Frank
Hayes.
Refreshments were served follow
ing the program.
The legal debt limit now is '280
billion dollars. The Eisenhower
administration soon will ask Con
gress to boost that ceiling, prob
ably by about 10 billion dollars.
The 19,t8 bookkeeping year
which ends today also will be
marred by a hefty deficit. Offi
cials predict spending will top in
come by 2-Yi billion to 3-Diiuon
dollars.
The exact size of the 1958 deficit,
which comes after two straight
years of balanced budgets, won't
be known for a couple of weeks
Latest figures, as of the middle
of last week, showed the national
debt at close to 276 billion dol
lars. The government then had a
cash balance of about 10 billion
dollars, a seasonal bulge that will
Secretary of the Treasury An
derson is known to feel the govern
ment should always have enough
cash available to pay its expenses
for two or three weeks. At the
present spending rate, that means
a total of 3 to 4'! billion dollars.
In addition, Anderson would like
few billion dollars to make it
easier to refinance the debt, a
more or less constant operation.
As recently as January. Presi
dent Eisenhower predicted a bal
anced budget for fiscal 19o9 and
a deficit of only 400 million dollars
for 1958. The recession has
chopped away at income and cor
poration lax payments, however.
while defense spending and out
lays to spur the economy have in
creased sharply.
Revenues for fiscal 1958 are ex
pected to fall about 2'j billion
dollars shy of Eisenhower's Jan
uary estimate of $72,490,000,000.
Spending will run close to his pre
diction of 72.800.000.000.
For fiscal 1939, officials are now
talking of outlays in the neighbor
hood of 8 billion dollars and
revenue below 70 billion.
Some experts doubt spending
will mount as fast as forecast.
They also view hopefully the in
creasing indications that tthe busi-
economic troubles in this agricul
tural and minerals rich republic if
the United States would just buy
more of its products and lower
tariffs on present imports.
Demand from the United States,
arising out of the recession there,
has tapered off sharply in the
last year or so.
Heartened by the recent visit
here of Vice President Nixon.
Peruvians are hoping things will
be worked out.
Lower prices and the fall in ex
ports, not only to the United
States but other foreign countries.
have nit Peru so hard that the
government will have to borrow
heavily from its own central hank.
or the U.S. Export-Import Bank,
to meet its 1958 budgeted expendi
tures.
The exports and imports bal
ance sheet didn't look so good lor
19o7 and economists fear it s go
ing to be worse by the end of
this year.
Exports last year brought in 330
million dollars. Imports totaled
448 millions.
. While a big chunk of the im
ports were for foreign companies
operating in Peru, the government
nevertheless had to use about 31
millions of its gold reserves for
payments.
Peru already owes 140 million
to the Export-Import fiank for
economic assistance: U.S. invest
ments here total 450 million.
The right-of-centcr government
of conservative President Manuel
Prado inherited debts from the
previous administration estimated
at 45 millions, struggling lor a
VISITS HAWAII
HONOLULU (UPI) Philip
pines President Carlos P. Garcia
arrived at Hickam Air Force Base
Sunday night to begin a jam
packed two-and-half day Hawaiian
interlude.
balanced budget, Prado has tried
to trim expenses to liquidate this
sum.
Prado, long has been beset by
agitation for wage increases for
the nation's workers. Despite at
tempted price controls, costs of
living have risen steadily.
To hiilt the wage boost demands.
the government recently approved
a general 15-20 per cent rise and
then decreed there would be no
more pay hikes for a year.
There are other problems fac
ing the government of Peru
roughly shaped like California, but
three times as big.
There is much unemployment.
As in many Latin-American coun
tries, no government official
seems to know just how much.
The per capita income is only $120
yearly.
Over half of Peru s 10 million
people can neither read nor write.
Poverty is widespread among the
lncas and other Indians who make
up more than 60 per cent of the
population.
there's a deep feeling among
many Peruvians that, while they
blame the United States for finan
cial and economic troubles,
amends can easily be made.
Thpv fipurp it nut simnlv nil
the United States has to do is to
hnv ins! ahnllt pvprvthinc Pan,
wants to sell and everybody here
will he hannv In clasn hanHc wilt.
Americans in warm friendship.
iney contend mat since the
United Stales snpnHs hillinnc nf
dollars on foreign aid for Europe,
Africa and Asia, South America
should get more.
Points like these and all eco
nomic complaints imaginable pro
vided the ammunition for the
hostile anti-American demonstra
tions staged here by Peru's Com
munists against Nixon.
u
I HI , For More
Living
Per Gallon
See the New
MORRIS
'1000'
nuuw a nveii i
I I 1200 I. Main TU 2-5511 I
R0DE0
CONTESTANTS
REGISTER
NOW!
At Rodeo Headquarters
530 Main St., Next to
HAL'S SPORT SHOP
Phone TU 2-0110
Klamath Basin
Celebration Council
The Communist nartv technical
ly is illegal in Peru, but it oper
ates openly. Prado's government
has shrugged aside the Commit
msts as a threat to Peruvian
democracy. Apparently that atti.
niae is based on the fact that the
lieds supposedly have only .00O
members and 40,000 to 50,000
sympathizers.
But Ihev are wielding nnwpr
'and influence in labor unions, uni
versities, student organizations,
and among the peasants.
Many Peruvians believe the
government should curb Commu
nist activities.
the easy way
Charge your LaPointe'i
maternity wardrobe
on our revolvinq charge
plan up to six months
to pay.
14
the author was arraigned last
night on a charge of simple as
sault brought by his wife, singer
Helen O Connell.
Miss O'Connell charged Cham
ales beat her and knocked her
down during a fight yesterday in
their Manhattan apartment.
The singer said she thought her
33-year-old husband was violent
and unsafe. She said she was con
cerned about the safety of their 2-month-old
daughter.
Planes Set
New Record
NEW YORK (AP) Two Air
Force jet tankers beat the east-
west speed record between Lon
don "and New York City yester
day.
Alpha, the first of the two U.S.
planes, flashed over Idlewild Air
port at 2:20 p.m. It had made the
3,460 miles nonstop flight from
London in 5 hours 51 minutes 24.8
seconds.
The plane landed minutes later
at Floyd Bennett Field in Brook
lyn.
Right behind Alpha streaked its
sister ship Bravo, which took 5
hours 53 minutes 21 seconds. It
landed at Westover Air Force
Base, Mass., its home base.
Swept from the record books
was British Capt. J. W. Hackett's
mark of 7 hours 29 minutes es
tablished Aug. 23, 1955.
The U. S. planes, four-engine
KC135s of the Strategic Air Com
mand, set new marks of less than
5'i hours for the New York-Lon
don flight last Friday. A third jet
tanker crashed just after takeoff
Friday at Westover. Fifteen men
were killed, six newsmen among
them.
Memorial services for the vie-
ness slide may have about run its Urns were held at Westover yes
course. Iterdav. .
O People Read
SPOT ADS
- you are
jy jj LA L
IS UJHAT I XTJANT - AND 2
fiET. IN GOLDEN GUERNSEY V
BECAUSE...
Beatty Rodeo
July 4th and 5th -1:30 p.m.
6 Big Events
3 Riding 3 Rti"g
Kids Calf Roping
Venison Bar-B-l
Free July 4th!
Dance 4fh and 5th
Music by the Basin Wranglers
Admission Adults $1.00
Children Over 12 - 50c
GOLDEN GUERNSEY comes to vou exactly as produced on the fine Golden
Guernsey forms of Mr. Roy Hobson, Mr. Earl Tillon and Mr. Walt Collmonj
nothing is added, nothing is taken away.
GOLDEN GUERN5ET 'he RICHEST milk you con buy so RICH, in
fact, you con actually see the difference in golden rich color. Many families uso
delicious Golden Guernsey os coffee cream.
GOLDEN GUERNSEY is distributed and backed by locally owned ond operated
Crater Loke Dairy Products, built by the highest, and constantly improved, pro
Wion odofd fce o bole eKy.
8 (E WDD '3aC3
FROM YOUR MALER R '
CRATER LAKEt ROUTE MAN
I
phoxe 43.5101