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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Nov. 2, 1959)
PARE TWO HKKA1J) AM) NKWS, Klamath Kalis, Orp New Financial Danger -Michigan Nearly Broke By JACK V. KX LANSING. Mich. IL'PI '-Michigan has reached a new peak ol financial peril. There is talk of closing univcr sities, bringing slate police in oil the road, cutting welfare pay ments, laying oil thousands of slate employe? and more "pay less paydays" (or others. The state has unpaid bills piled up of about 71! million dollars. It has just collected and spent 14 million dollars Irani its ciH.ens from a tax now declared illegal and faces the near impossible Portland Lad Shoots Self PENDLETON, Ore. (API-Stale police here said a 17-year-old Portland youth shot himself in the head apparently to avoid capture after he had f i rod a shot at a police car Sunday night. The youth was identified as F. Zamora, 4517 S.E. both St., Port land. Policeman Ncal Tone touched off the shouting when he attempt ed to halt an automobile on High way .10 some 11 miles west of Pendleton at about 9 p.m. Tone said the driver refused to stop and continued to weave back and forth across the road. A short time later the car ran olf the highway into a stubble field. Tone went to check the car and found an empty pistol holster in the driver's seat. Other officers were summoned. As they search ed the field, a shot rang out and a bullet hit Tone's police car. As the officer closed in on the area where the shot came from, another shot was fired. Police said they found the youth had shot himself in the head. He was taken to a Pendleton hospital where his condition was reported early this morning as critical. Waste Group Meeting Held COOS BAY (AP)-Thc Pacilic Northwest Sewage and Industrial Wastes Assn. will hold its next annual convention in Walla Walla. The group made the choice as it closed a meeting here last weekend, It elected as president fl. 0 Sylvester, a University of Wash ington, professor of sanitary en gineering. Ray Fish of Mcdlord was named vice president. Re-elected executive secretary was Gilbert H. Dunslan, Washington Slate Uni versity prolcssor of sanitary en gineering. STII.l, LIKE ICE CREAM ClIftlSTCIIURCll. New Zualand (UPI) The 17 men who win tered at the American antarctic station at the South Pole have had their quarters buried undo three feet of snow and ice hut It hasn't affected their appetile for ice cream. Their favorite flavors arc straw berry, chocolate and vanilla, Nello Bambini, of Roslon, reported by shortwave radio. NOW SHOWING! I THE MOST CONTROVERSIAL WAR DRAMA EVER FILMED! L iYJT. ... I -1 task of trying fo rebate all the pennies collected on purchases of clothing, groceries and other mail items. Us Legislature is going into the ltth straight month of wrangling while, as one newspaper said last week, proposals for new taxes wait around the chamber like cx oi ic perfume. It seems and it is ridicu lous that bankruptcy threatens Michigan. This is one of the wealthiest and fastest growing states in the nation. It has the huge automotive industry, magnif icent forests and mineral deposits, a big agricultural industry. Why, then is Michigan broke? The answer boils down to a no- quarter struggle between the Re publican controller1 Legislature with the support of industry and Democratic Gov. G. Mennen Wil liams, a millionaire with the backing of the United Automobile Workers Union. Williams has been governor for six consecutive two-year terms and the Republicans have ruled Ihe Legislature tho?e 12 years. In all that time, they have never reached a satisfactory, long-range Ux program, although stale ex penses mounted rapidly. To understand Michigan s prob lem, certain facts must be slated. The stale is constitutionally pro hibited from borrowing more than $250,000 although even its towns can float bonds and go into debt by 2 million dollars or more. Thus, while other slates can and do borrow to meet current needs, Michigan cannot. Much of its revenue is ear marked to more than 40 special funds which cannot be used for general slate expenses. It has no state income tax. Its main reve nue conies from a 3 per cent sales tax. Rut in 104S legislation was passed that out of every six cents collected on the sales tax, 4 cents had to go to the schools and one cent to local governments. That lelt only 1-6 for the state. This is not Ihe first crisis by any means. Past shortages have been met by such expedients as a new tax on liquor and one on cigarettes. -Now, more patchwork tax legislation is in prospect by Ihe Legislature. One likely action is the seizure ol the veterans' trust fund of 40 million dollars to pay olf bills This lund has been used only to the extent of loans of about $1,500,000 a year to veterans and Ihe argument is that those can lie handled by a special appropri ation. Another idea is a new $10 "one shot" tax on every automobile owner in Michigan. With 3.500.000 cars that would bring in 35 mil lion dollars. The state got a had jolt last month. Another of its expedients was raising the sales tax from 3 per cent to 4 per cent and calling the extra one per cent a use tax. The stale Supreme Court declared it illegal on a strictly partisan 5 Democrats nnd 3 Republicans basis and an anticipated in come of 110 million dollars was lost. Now there fs much political scurrying to put referendum! on the ballot in the November 10 election to fit party strategy. The Republicans propose to ask a constitutional change to boost the sales lax to 4 per cent. The UAW over the week end countered that it would ask ap proval of a terrific excess prolit tax which would tke 25 per cent ol corporate income over per cent. With General Motors record earnings lor Ihe first 9 months ol this year, the annual tax on that company alone would put Michi gan in the black. Williams says that is all very well, hut he needs 110 million dol lars now. The public hasn't had t h e cnancc to say much of anything but a visit here makes it evident the people are disgusted. Several editors at a United Press Inter national meeting in Grand Rapids agreed a lot of people' would like to toss out the entire Legislature Democrats and Republicans alike, plus Ihe governor and start with a clean slate. dennis the menace; jfrrpfary of Treasury Puts Across New Policy i i J J ic known r 11 'PlfMSf, DENNIS! All I WAUX TO OO IS GST fID Of THAT SILiy COWIICK' Uprising Enters 6th Year; Terrorist Attacks Kill Four ALGIERS AP) The Algerian nationalist rebellion against French rule began its sixth year Sunday with the usual daily hit-and-run terrorism and French mil itary operations in the mist shrouded mountains. Terrorist attacks killed 4 persons- and wounded 3!) at various points in the North African terri tory. Military casualties were not announced. But Ihe daily average, according to French figures, is about 80 rebels killed or captured, and 10 killed and 50 wounded in the French forces. The long (or peace was great among Algeria's one million Euro peans and nine million Moslems. But peace seemed far away in the atmosphere of suspicion, fear and despair. Rebels struck in bands and in dividually in Algiers and other cities Sunday. Terrorists threw bombs and gre nades into cafes and crowded streets, let loose with machinegun fire, derailed a train 25 miles south of Algiers and cut high ten sion wires near Sidi Aissa. A vil lage chief was kidnaped and killed near Ain-Temouchent. A French i cttiwiu Haunt I iiiiiki moucnoi , 2ni Fcetur KOIIERY UNDER ARMS Two Seamen Said Drowned TAFT, Ore. i API Two seamen are missing and presumed drown ed in a boating accident on Ihe Siletz River Bay Bar on Ihe northern Oregon coast Sunday night. Henry Sause of Portland, presi dent of the million-dollar Sause Bros. Towing Co., survived the capsizing and made it to shore alter fighting 20-foot breakers which crashed over the bar. Missing are Ralph Hunt, skip per of the Sause tug, Columbia Queen, and Mel .lorgenson, Ihe tug's engineer. The 81-loot ocean-going lug Co lumbia Queen ran onto the bat here 10 days ago when Hunt mis look the mouth of the harbor lor Yaquina Bay. A few days later. a tractor pulled the vessel over the bar into Ihe bay. Sause and the other two men were plotting a course to bring the ship over the bar at Ihe nexl high tide. They were in a 22-lnol bar tender for this work. The boat's motor failed and they began drifting toward the breakers. They threw out a sea anchor, but the line had not been lastened properly. The boat was sucked into the breakers and raked back and forth across the bar. Sause said it overturned 15 times in Ihe high waves. He managed to hold on un lil the boat got close to the spit Tnen Ihe waves washed him to shore. His cries for help got a search started (or the missing men. territorial guard was killed by a rebel palrol in Allreyville, south west of Algiers. The semi-oil icial French News Agency said about 250.000 persons have been killed, injured or Im prisoned since the rebellion broke out .Nov. 1, 11)54. The agency gave this break down: 120,(1011 rebels killed, 60,000 taken prisoner; 10,000 French sol diers killed, 22.000 wounded: 1.700 European civilians killed, 4,500 wounded, 300 missing: 12.000 Moslem civilians killed, 9,000 wounded, 10.000 missing. Gestures towards negotiations to end the fighting have aroused mis givings among both the Europeans and rebels. The French government only three days ago gave assurance to worried Europeans and their .Mos lem collaborators that France would not abandon. the territory or engage in political negotiations with Ihe rebels. President Charles de Gaulle has promised a free referendum in Algeria within lour years after peace is restored and ollered three possible choices integration with France, home rule under the protection ol France or independence. Dc Gaulle made the otler with the warning that choosing inde pendence would be disastrous lor Algeria. But French colonists (eel any referendum will be the be ginning of the end of French rule. Nationalist leaders have de clared themselves ready to nego tiate a settlement on the principles of self-determination and the unity of the Algerian homeland. But they have never given up their determination to end French rule. By FRANK CORMIER WASHINGTON AP)-Kobert B. Anderson, the quiet man who is secretary of the Treasury, has quietly brought about a hard-eyed reappraisal of the U.S. foreign aid program. Just as important, he has put across a new policy designed to insure that a bigger proportion of U.S. loans to underdeveloped countries are spent in the United States. Working behind the scenes, An derson won administration backing (or these major policy moves without touching off an acrimoni ous public debata. His performance has solidified the widespread impression here that he is the most influential member of President Eisenhow er's Cabinet. While the secretary's aides take pains to point out that Eisenhow er made the decisions and the new policies are administration poli cies, .naerson was me arcnitect He acted because he felt some changes might be made in the aid program that would help stem the outflow of gold and dollars from the United States. This outflow, measured in terms of the country's balance of . .. .i .-.mi Eisenhower loans to purchases in Ihe Unilcdl Anderson takes muui Anders' -nui Inu-arfl a Daian-u . ,u h ...needed privately that a ting sum small deficit would be no financial 2tI HicnE fr However, m- Slates are piddling compared to the potential harm. They say it represents a lurn ing away from this country's lib eral trade policy and may encour age protectionist forces. Anderson does not see himself as a protectionist but as an inter nationalist. He believes the pay ments deficit itself would strength en protectionist forces if it is not curbed. To the plain-spoken, mild-mannered Texan, the new develop ment loan policy makes plain horse sense at a time when this country is losing dollars. An aide, echoing Anderson's views, said: "What if we provide cash for a country and say, 'go buy yourself a power plant in West Germany.1 Would we be helping that country or West Germany, which doesn't need any help?" In dollars and cents the new policy is unlikely to have a pro found effect soon. From Ander son's point of view, this may not be too important. The secretary has always em phasized the importance of con fidence, which often can be in fluenced as much by psychology as by measurable developments. In one sense, the new loan policy is known to helleva ct. I that Anderson would make a fit. cccssor in me mine nouse. international payments, will reach' is a psychological move. It is in- four billion dollars this year. Since trade produces a surplus, all of this- deficit results from military spending abroad, foreign aid and private investment overseas. As the Treasury chief, it is An derson's job to watch this deficit critics because it inevitably affects the ment stability of the dollar. Critics say that the benefits to be gained from tying development tended to show the world that Ihe United States will take any action necessary to maintain confidence in the dollar. This in itself could help inspire confidence. though Anderson's aren't buying this argu- secking a balance because otner wise, he believes, people would lose confidence in the govern ment's fiscal responsibility. In his advocacy of conservative fiscal policies and his almost mystical preoccupation with con fidence, Anderson perhaps is dis playing two sides of his personali ty. The secretary is both a business man and an amateur poet, and perhaps looks more the poet. Tall, gangling and bespectacled, he walks with a slight limp which dates from a childhood polio at tack. No desk pounder, he speaks softly and sometimes rambles in a fashion that belies his success in influencing high policy. Anderson, now 40, was the $,-0O0-a-ycar manager of the Wag goner Ranch in Texas belore com ing here, a Democrat for Eisen hower, as secretary of the Navy in 1053. Alter moving up to deputy secretary of defense, he left in 11155 to become president of en- tures Ltd., a Canadian mine hold ing company. In July 1057 he was back as secretary of the Treasury this time as a registered Republican. His rise in influence since then m ROCK 'N ROLL DANCE featuring music by DENNIS WAYNE and the COL-LEE-JETS (THIS IS THE SAME utin AND SINGER WHO li MADE SUCH A HIT WHEN THEY ArrtAKfcu HERE WITH BOBBY DAR. IN IN JULY) Klamath Falls AUDITORIUM SAT., NOV. 7 Admission $1.00 until 9 $1.25 cltcr 9 Dancing 9 till 1 THIS WILL BE THE LAST LI DANCE UNTIL THE SAT. AFTER THANKSCIVINIj 11 has been such that President jiSuSiak, The famous painters, William Blake, Dante Gabriel Rossetti and Michelangelo, all were also dis tinguished poets. : Family Protection.' ' "Equitoble's Living Insurance" : John H. Houston WATCH FOR IT! CLOSED TOHITE OPEN THURSDAY! SSEft&7 NOW PLAYING! ...TS WHAT GOES ON WHEN THE LIGHTS GO OFF ! I tony RANDALL $0 thama RIM NICK ADAMS-MARCEL DAIIO-JULIA MiAOE a univusai.inimnmionai muy in tsN COLOR CINEMASCOPE SKTTI.E NILE DISPUTE CAIRO tl'PH - Kgypt and Su dan have settled their dispute on the sharing of Nile waters as a result of negotiations which began Oct. 10, it was announced Sunday. Klamath Valla, Orrgon Hrrvtm Southern Oinon and Northern California Published daily except Saturday hy Southern Oregon Pubhahtni Company Main at Lplanacle Phone Tl'srdo 4-81 It FRANK JENKINS. Editor BIU. JENKINS. Manatm Editor FLOYD WYNNE. City Editor Entered aa second data matter at tha not offtr at Klamath Falls. Oreion on Auiuat 30, IWHi. undrr art of (.onireM. March 3. 1879. Second-claw poMage paid at Klamath FalU, Oregon, and at additional mailing office. SUBSCRIPTION RATES Carrier 1 Month 1 M 8 Monlha ! nn 1 Year $18 00 Mail In Advanca I Month $ 1 n 8 Montha 8 W 1 Year $13 00 Carrier and Dealers Week daj i ropy ..,... V Sundat. copv , .... 10c UNITED PRESS INTERNATIONAL ASSOCIATE D PRESS AimiT Rl'RKAU OF CIHl l'l .A HON Huhftrrhera not receiving deliver Af their Herald and News, plra phnne Tl'verto 4 8111 he for T PM Ar 7 p M , nhnne Maurice Miller Cm rulauon Manager at TVxedo 4,-47 W. 'Da November 9-21 MAKE YOUR HOME HAPPIER WITH A NEW APPLIANCE FOR THE HEIR MINDED You'll look your prettiest while you're waiting in this cotton print over blouse in gold or rose t s cowl collared and short sleeved. J "OW I M ! ! Juir toy "Chorg. It." I Folger's COFFEE Crater Lake 12 Gallon Ice Cream Van Camp's TU Vj Tins atdniiAihH Scott's Toilet TISSUE Rolls Big-Y Country Style Sausage U.S.D.A. Good T-Bone Steaks Fresh Ground Beef 3i1 4.79 The perfect . match for any maternity top is our slim corduroy skirt with adjustable waistband. In black, gold, red or beaver. 3.79 From Our S&W Sale: 36w rancy mm 5 4 Stewed Tomatoes T3" 3 I 4 -I 12 -1 6 h'1 5 -1 S&W Fancy Tomato Juice 46 01 S&W Tomato Sauce S&W Oven Baked Beans 16 01 S&W Tomato Catsup 14 01 1 L Flavorful Tomatoes 0 lb. )() c L basket Jonathan's Delicious Large Fancy Apples 8 lb. QC bag 07 Large Box 1.98 Right Reserved to Limit Both Biq-Y,s.7t,,ondPin,, wivj 3 - 471Q s 6(h Prices Effective Through Wed.