Herald and news. (Klamath Falls, Or.) 1942-current, January 18, 1960, Image 1

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Herald and news., January 18, 1960, Page 1, Image 1

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Newspaper Page TextO.Op1 OH. LIBRARY NEWSPAPER SECTION CEN.REF. AND DOCUMENTS LIV EUQENE.OHEG. COUP, SEES TAX CUT Ike Offers $79,816,000,000 Budget, Predicts $4 Billion By THE ASSOCIATED PRESS Budget at a glance Budget estimates or year end ing June 30: 1960 1961 Income: $78,6O0,0OC,O0O $84,000,000,000 Outgo: "8,383,000.000 79,816,000,000 Surplus: 217,000,000 4,184,000,000 Vearend debt: 284,500,000,000 280,000,000,000 By FRANK CORMIER WASHINGTON (AP)-President Eisenhower today sent Congress his election year budget and said it promises a $4,184,000,000 sur plus that can pave the way for a tax cut, possibly next year. For the present, however, Ei senhower proposed raising more revenue. He said Congress should increase the federal gasoline tax by half a cent a gallon to 4 Cents and add a penny each to the 4-cent letter charge and the 7-cent air mail rate. The President implied that un less Congress votes these and oth er revenue measures and resists any urge to boost spending the predicted surplus will melt away and with it, hopes of broadscale tax relief sometime after the No vember election. For the 1961 fiscal year that be gins July 1, Eisenhower estimated record revenues of 84 billion dol In The- Day's lews By FRANK JENKINS This is the day on which the President of the United Slates sends to the congress his annual budget message. Of Ihe budget (for the fiscal year 1961) that -President Eisenhower has just sub mitted, he says: "(This) budget is a test of our resolve, as a nation, to allocate our resources prudently .... to maintain the nation's security. . to extend economic growth into the future without inflation." Comment: If YOU, as an individual, fail (o allocate your resources pru dently (that is, to provide for your fundamental needs, such as food, clothing and shelter) YOU WILL GO BROKE. The same goes for nations. The budget, the President says, provides revenues of $84 billion and expenditures of $79.8 billion, leaving a surplus of $4.2 billion. Comment? Let's let Dickens' Mr. Micawber provide it: "Annual income twenty pounds, annual expenditure nineteen, nine teen six,, result happiness. Annual income twenty pounds, annual ex penditure twenty pounds ought and six, result MISERY." The President adds: "This surplus should be ADDED TO DEBT REDUCTION, which I believe to be a prime element in sound fiscal policy for the nation at this time." Comment: If YOU go adding to your debt and NEVER PAYING OFF any thing, you will wind up in the bankruptcy courts. The same goes for nations. It just takes longer. A final word of advice: In considering Ike's budget rec ommendations, apply to them the same logic you use when consider ing your personal or your family budget. When you think of a NA TIONAL budget, you get confused. The figures are TOO BIG to be understood. And- The politicians take pains to con (use you even more. They tell you the more you spend AS A NATION the more prosperous you will be AS AN INDIVIDUAL. They quote big names such as Lord Keynes to prove their point. -Don't let the politicians lead you off into the wild blue yonder in your thinking. Remember this: When the politicians need more money, they merely reach into your pocket and the pockets of 180 million others and TAKE OUT WHAT THEY NEED. YOU HAVE TO WORK FOR WHAT YOU GET. That's quite different. In conclusion: You and I know that if. year after year indefinitely, we go on spending more than we earn, we'll wind up in very hot water. You can bet your bottom dollar that if the government of the United States, egged on by the politicians, goes on indefinitely spending more than it takes in, It too will wind up (in very hot ,. water and it will drag us, or maybe our grandchildren, into the lot water along with it. History leaves no doubt on that point. I lars. He called for spending of $79,816,000,000. This would produce the biggest surplus in 13 years a margin of black ink which the President said should be used to reduce the record national debt of 292 billion dollars. He said a debt cut would WASHINGTON (API The fis cal 1961 budget proposes Taxes: A Vi cent a gallon In crease In gasoline tax. All other tax rates continued. Postal: First-class postage boosted to 5 cents. Other un specified increases. Spending: Up $1,400,000,000 from this year, to $79,800, 000,000, For defense, 41 billion dollars. Income: Up $5,400,000,000 to 84 billion dollars, assuming record prosperity. Surplus: About $4,200,000,000, all to be used to reduce the 292 billion national debt. counter inflation and spur savings needed to stimulate new economic growth. Eisenhower said the projected spending level will permit small increases in both the military and foreign aid budgets, a major step up in space exploration and rec ord outlays for water projects. Although allotting 50 million dol lars more for defense, the budget Snow Sweeps Midwest Area, Closing Roads By THE ASSOCIATED PRESS A blustery snowstorm swept into the Midwest today from the West, leaving a heavy blanket of white across areas from the eastern Colorado plains to the Mississippi Valley. The storm, which dumped up to a foot of snow in parts of Colorado, curtailed travel, blocked roads and closed many schools. The Weather Bureau posted warnings of hazardous driving conditions. The slorm was blamed for at least nine deaths, eight of them in accidents on ice - slicked and snow - covered highways. Five were reported in Colorado and three in Illinois. One woman froze lo death in Amarillo, Tex. Heaviest snow during the night, two to four inches, was in southern Iowa and extreme northern Mis souri. The fresh falls made a total four to eight inches on the ground. The snow moved into southern Wisconsin, lower Michigan, north ern sections of Illinois and Indiana and headed northeastward. Snow diminished westward from Iowa and Missouri, with light falls from Kansas into the Dakotas, Montana, Wyoming and Colorado. Strong winds caused much drifting in some areas. Strong northerly winds fanned cold Canadian , air southward across the plains, with tempera tures dropping in the Dakotas and Montana southward through Colo rado and northern New Mexico and Arizona. It was below zero in some areas, with the mercury from near zero to about 10 in most of the snow-covered sections. In Colorado, two main highways, U.S. 24 and U.S. 40, were blocked by huge drifts and many rural roads were blocked. Up to nine inches of snow fell over the weekend In the Texas Panhandle. Ice-slicked roads in Texas, Oklahoma and New Mexico. Britons Stage Marches Against Anti-Semitism By THE ASSOCIATED PRESS Thousands of Britons who fought nazism and Italians who lived un der fascism demonstrated yester day against anti-Semitism. The month-long wave of swasti ka smearings that began in West Germany and spread around the world seemed fading as many Jewish leaders predicted it would. Only a few scattered incidents directed at Jews were reported over the weekend. Widespread inquests into the swastika displays whether hooli gan exhibitionisms or symptoms of an organized revival of nazism have brought forward nothing conclusive. A British Sunday newspaper, the Empire News, said it had proof the anti-Semitic outbreaks in West Germany were inspired by Soviet agents to discredit Chancellor Konrad Adenauer's government. British officials declined comment. There have been anti Semitic displays in Britain, too, but the newspaper did not suggest these were inspired by the Reds. Home Secretary Richard A. Butler has said the British outbreaks could be "largely attributed lo irrespon sible hooliganism." Waving banners reading 'We proposes small cuts in purchases of missiles and ships and a big re duction in aircraft purchases. Cuts in non-military programs generally were small and scat tered. Eisenhower asserted that if the fiscal blueprint can be translated into reality, the president and Congress to be elected in Novem ber will have an opportunity to cut taxes, assuming prosperity continues. "Soundly conceived tax revision can then be approached on a com prehensive and orderly basis, rather than by haphazard piece meal changes," he added. Eisenhower did not say specifi cally that a tax cut should be con sidered in 1961. He merely pointed to this as a possibility during the two-year tenure of the Congress that will convene next January. He also commented the legisla tors might prefer debt reduction to tax reduction. In addition to a big surplus in fiscal 1961, the President is count ing on a 217-million-dollar surplus in the current bookkeeping year. For the 12 months which end June 30 he estimated revenues of $78, 600,000,000 and spending of $78, 383,000,000. The 952-page budget contained no major surprises, particularly since Eisenhower revealed the principal figures 11 days ago in his State of the Union message. ' Price Five Cents 12 Pages MILES FRENCH test area is shown in the shaded area of this newsmap. The nuclear tests are expected between now and the beginning of March. Crews Divert Volcano Flow HONOLULU (AP) A fiery river of lava continued its flow to the sea from Kilauea volcano tfc day after hard-working bulldozer crews prevented it from engulfing Warm Springs resort Sunday. The crews pushed up a 20-foot dike to divert the molten rock shortly before a new fountain from the main lava flow shot lava and pumice lo 1,700 feet. The main flow is near the evacuated village of Kapoho, three miles from Warm Springs. Guided tours to the Kapoho area were permitted again Sunday af ter fumes and pumice fall stopped. Kilauea is on Hawaii Island, larg est in the archipelago and 200 miles southeast of Honolulu. protest against nazism" and "The blood of millions cries out," thou sands marched through London's half-deserted streets Sunday. The long column paraded silently to Ihe West German Embassy, where a delegation delivered a letter de scribing the manifestation as a re flection of British public opinion "which holds anti-Semitism in ab horrence." Rallies against anti-Semitism, with youth movements of various political parties taking part, also were held in several Italian cities. The biggest were in Turin and Florence, where hundreds paid tribute at memorials honor ing the victims of fascism and nazism. In New York City, two six footers were charged Sunday with attacking a party of six Jews including two women in a diner. The melee broke out after the young men reportedly made anti Semitic remarks. The two, Peter Askeland, 22, and Anthony Hus kins, 27, said in court they would file counter charges of assault against the Jews. The row was in Queens County, Long Island, where three self styled admirers of Hitler were charged with treason last week iTIANTK - r'S r n f f tA J - fi FISCAL Altogether, the document in cluded 79 legislative proposals, these being the most important: Increase postal rales by 544 mil lion dollars a year. This was 150 million more than was requested, nd refused, in 1959. If Congress again bypasses higher rates, as seems likely, spending will be increased by a like amount since postal revenues are used to reduce the depart ment's demands on the Treasury. Boost the gas tax to 4li cents KLAMATH FALLS, OREGON, French Plan Atom Blasts In Sahara Desert Areas PARIS (AP) France is expect ed to explode her first atomic weapon in the Sahara any day. A successful blast will put France in Ihe nuclear weapon club re stricted so far to the United Slates, the Soviet Union and Bri tain. The French Defense Ministry warned planes flying over the African desert to stay' clear of certain areas beginning .today.. The device set off will be atom ic, not a more powerful hydrogen bomb weapon. Airliners flying over the Sahara mostly French and British were warned to slay clear of a zone around Reggan in central Algeria. The sile is about 600 miles from the Mediterranean coast and about the same distance from the Atlantic. Planes flying over the rest of the French Sahara were advised to remain above 10,000 feet, avoid certain other areas and keep in radio contact with French authori ties. The French announcement gave no lime limit for the regulations, saying only that they would be in force "for the months to come." The French have pushed deter minedly ahead with development of an atomic weapon despite in- Quoth The Raven 'Nevermore'-Poe DETROIT (AP) Edgar Allen Poe, 25, had the sort of exper ience his poet namesake might have written about a horrible few minutes. Poe was in a tavern when two men held up the place. One put a pistol against Poe's head and said: "I will kill this man unless you will do as you're told." The men fled with about $287, leaving a shaken Poe. "JOE" WATCHES fellow swimmers splashing happily in dead-of-winter at the heated KUHS natatorium, used evenings and Saturdays by local residents under auspices of the YMCA. Joa, local symbol for Worldwide YMCA Week, will appear during the week In other pictures and articles outlining the organization's service. FACTS a gallon until June 30, 14, when the rate would revert to 3 cents. This would produce an extra 500 million a year to speed construc tion of superhighways a program handled through a trust fund out side the budget. Congress last year boosted the tax from 3 cents to 4 cents for a 21-month period beginning last October and is expected to resist the new request. Increase the tax on aviation gasoline to 4'i cents a gallon, MONDAY, JANUARY 18, I960 tense opposition to Ihe Sahara tests from independent African nations and two resolutions by the U.N. Assembly opposing the Saha ra tests. Ghana, Tunisia and other Afri can nations expressed fear the French explosions would contami nate African areas with dangerous radioactivity. The French gave as surance that radioactivity would be confined, to a small .area. American and British officials have expressed the opinion pri vately that the Soviets might use French testing of a nuclear weap on as a pretext for resuming test explosions of their own., Life Term Con Marks Birthday, Likes Jail Life SAN QUENTIN, Calif. (API- Tony Di Tardo was 85 Sunday and cried happily when his fellow con victs presented him with a cake with 85 candles. Sentenced to life in 1920 in the slaying of his wife, Di Tardo has no interest in leaving after 40 years behind bars. "I'll turn down every offer of parole," he told prison mates who helped him blow out the candles. 'Here I am and here I'll slay." He lives in a private cell in the hospital block because, guards say, he keeps his radio turned up so loud. LOOK OUT FOR KERNELS RALEIGH, N.C. (UPI) - The North Carolina Supreme Court said Thursday it is up to the con sumer to watch out for kernels in his breakfast cereal. The court threw out the damage suit of C. Robert Adams whd" charged he broke a tooth on a kernel in his cereal. from 2 cents, and establish a new 4'i cent tax on jet fuels. These actions, also requested in 1959. would add 72 million dollars to revenues. Eisenhower also asked that avi ation taxes go into the general fund, instead of the highway trust fund. Postpone a scheduled June 30 cut in corporation income and ex cii.e taxes. Unless this is done. Treasury revenues would drop at least 3'j billion dollars a year. - Increase the national debt ceiling temporarily. Eisenhower said the prospective surplus plus cash on hand will permit cutting the debt to 280 billion dollars by the end of fiscal 1961. However, lie said seasonal borrowings next fall will make necessary a tem porary increase in the ceiling. The permanent ceiling is 285 bil lion dollars and a temporary lid of ?.I5 billion expires June 30. Remove the 4'i per cent inter rest ceiling on money borrowed for more than 5 years. Eisenhower already has submitted a special message renewing this 1959 re auest but congressional Demo crats have shown little enthusi asm. Here are the spending plans Ei senhower blueprinted for major programs: Defense outlays will inch up ward by 50 million dollars to $40, 995.000.000. Aircraft purchases will Telephone TU 4-8111 Cities To Ask Liquor Slice PORTLAND (AP) The 1961 Oregon Legislature is going to be asked to give cities a bigger cut of slate liquor revenues. The League of Oregon Cities executive committee said Sunday after a two-day meeting here that the league will call for an in crease to 15 per cent. The munici palities' share of net profits now is 10 per cent, or about l'i million dollars annually. League officials said cities need the additional $700,000 a year the increase would bring to meet li quor law enforcement costs. The executive committee said (he Legislature also will be asked to change the state's annexations laws a bit. Among those attending the weekend meeting were the league president, Mayor Loren McKinley of Tillamook, Corvallis City Man ager John Porter and mayors Ed Harms of Springfield, Russell Boneslecle of Salem-, John Snider of Medford and Lawrence Slater of Klamath Falls. II I wwm:. in il PRIME MINISTER KISHI I . " ' I be cut out by 642 million dollars to six billions. Missile procurement will drop by 21 millions to $3,479, 000.00O. Funds for the new ships will he seven millions lower at $1,644,000,000. Money is requested to begin work on three new Polaris mis- WASHINGTON (AP) Here's where Uncle Sam's budget dol lar goes In fiscal 1961: k National security 57.1 cents. Interest on debt 12 cents. Veterans 6.9 cents. Agriculture 7 cents. All other 11.3 cents. Here's where the budget dol lar comes from: Individual Income tax 52 cents. Corporation tax 28 cents. Excise taxes 11 cents. Other 9 cents. sile submarines and to buy some equipment for three more now in ihe planning stage. This brings to 15 the number of Polaris subs built or planned. Also on Ihe fiscal 1961 schedule is a new aircraft carrier, but without the nuclear power plant the Navy wanted. Atomic energy programs will cost an estimated $2,689,000,000 about the same as this year. A cut in uranium purchases will be off set by "substantial increases for Prime Minister Arrives To Sign US Japan Pact TOKYO (AP) Prime Minister Nobusuke Kishi will perform one of Ihe most important acts of his political career Tuesday when he signs in Washington a new secu rity treaty binding Japan and the United States. His fight for the treaty reveals something of the man. Since as suming the premiership in Feb ruary 1957, he has weathered storm after slorm. Supporters say his tenacity is reminiscent of his courage in de fying wartime Premier Gen. Hi- deki Tojo's orders to resign be cause of a difference in views. Kishi, then munitions minister. thought Japan should surrender after the fall of Saipan. Born Nov. 13, 1896, in Yama- guchi prefecture, southern Japan, Kishi was one of 10 children of a government official named Sato. He changed his name upon adop lion at 15 into the Kishi family. Kishi's younger brother, Eisaku Sato, is finance minister. Kishi graduated from Tokyo Un iversity in law in 1920 at the top of his class. He first attracted at tention when he led a group of officials of (he Commerce and In dustry Ministry in opposing a 10 per cent salary reduction for all government officials. By 1941 Kishi had a Cabinet post, the Commerce and Industry portfolio in Tojo's government. For his wartime activities Kishi was jailed three years, but never tried, as a war crimes suspect. When released he got a job from Aiichiro Fujiyama, now foreign minister who is with Kishi in Washington. Kishi's time in prison has not made him anti-American. Since his entry into politics in 1952, Kishi's main foreign policy Ihemc has been the need for friendship with the United States. He was elected to the House of Representatives, rose in influence in conservative groupings that have now become the Liberal Democratic party, and became its Natatorium Halts YMCA The now-defunct, after - school swimming program at Ihe Klam ath Union High School natatorium was a good illustration of how the YMCA attcmpls to perform a pub lic service. The popular swim program died this month only because Ihe nata torium is being overhauled. New dressing rooms arc under con struction and a modern chlorinat ing system will be added. When construction is complete, local YMCA Secretary Paul Camp bell hopes to arrange again with the high school board of educa tion for pool use. But that will have to wait until next fall. The program got started in Oc tober and gained momentum stead ily. More than a thousand swim mers made use of the pool during that period. Average attendance per week was 200. One of the most noteworthy tea lures of the program was a period for the physically handicapped Monday evenings. A trained vol unteer instructor and therapist, Mrs. Ruth Tribe, directed Ihe class. She was assisted by other adults. All instructional time was volunteered. The accent was on youth, but adults were givea special swim Surplus research and development." Space exploration outlays will be increased by 275 million dol lars to 600 million. Foreign aid spending is pegged at $3,450.ooo,ooo, a boost of 100 million. Military assistance represents $1 .730.000.000 of the to tal. Tile rest is economic and technical aid. Hut his total re quest, for 11 and future years, was $4,175,000,000, including two billion lor military aid. The Army Engineers and Bu reau of Declamation will spend a record S1.2l0.ono.ooo on flood control, navigation, irrigation and power projects. This is 116 mil lion dollars more than this year and includes 18 millions to start work on 42 new projects. Interest on Ihe national debt is estimated at $'1,585,000,000. Ei senhower said the 200-million-dol- lar increase over this year re flects rising interest rates which, lit implied, will level off if the forecast surplus materializes. Commerce and housing is the only broad category lo show a drop. Estimated spending is down by 293 millions to $2,709,000,000. However, the poslal rate request of 544 million more than ac counts for this. Labor and welfare spending wili rise by 128 millions to $4,569,- 000.000. The largest increases are for medical research and hospital construction. secretary general in 1955. lie was elected party president, and hence premier, when Tanzan Ishibashi resigned in 1956 because of poor health. Kishi requested the existing U.S.-Japan security treaty be drastically revised when he visited Washington in June 1957. While it was under negotiation he fought off attack after attack against tha American alliance, both from ele ments within his party and from leftists who want Japan neu tralized. The result is a new pact of in definite duration capable of being terminated after 10 years upon one-year notification by either side. It requires prior consultation with Japan before U.S. forces can be deployed from Japanese bases for combat purposes or before nu clear weapons can be brought into Japan. It authorizes Ihe stationing of U.S. forces in Japan. The pact re quires that America defend Japan, but not that Japan come to Amer ica's aid if American territory ii attacked. Ki.shi has formed three cabinets. patched up repeated intra-party squabbles, and won elections in a manner that has made him on of the most durable prime minis ters of Japan. Weather FORECAST Klamath Falls and vicinity: Mostly cloudy with a few light snow flurries tonight; partly cloudy Tuesday. Highs 24-32; low tonight 5-15. High Sunday 39 Low last night .'. '. 26 Precip. past 24 hours 02 Since Oct. 1 1.71 Same period last year . 2.20 Low In area, Chlloquln 21 Chcmult .....'. 18 Northern California Clearing to night and fair Tuesday, but con siderable high clouds in north; lit tle change in temperatures. Remodeling Swim Class periods, too. An instructional swim period for adult women, handled by Mrs. Phyllis Goakey, followed the period for the handicapped on Monday evenings. Adult men swam Thursday evenings. The period was especially popular with Oregon Technical Institute students. Two successive swim periods were reserved for families each Friday evening, supervised by Bruce Galloway, associate YMCA secretary, who coordinated the en tire swim program. Even KUHS students made good use of the pool in off-school hours when they otherwise could not have. Youngsters interested in keeping fit for action next sum mer with the local compctilive swim team were given several periods for practice, as were mem bers of the KUHS synchronized swim team. Other instructors and supervisors who volunteered time were Dick Wyatt, Ella Redkcy and Mrs. Kay Sine. ' The YMCA, to secure use of the pool, agreed to insure adequate supervision and maintenance. The Y also decreed that the program would be open tb all other local organizations. The Y was respon sible for program coordination.