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About Herald and news. (Klamath Falls, Or.) 1942-current | View Entire Issue (Jan. 24, 1960)
HERALD AND NEWS. Klamath Falls. Ore. Runrlnv. Tamiarv 24. 10RO PAGE A ' MYtrr ? ernes from. . Individual Income Taxes .52$ Corporation Income, Tuts 28$ The TAX DOLLAR Where it gees 7$ ,n"s M.- 1 II I 11 riSCAL YEAR 1$S1 ESTIMATE Major National Security Mililif; Fun: lions Militjrj Isjisiinct AtOliC Uiu SUtlj'lnf. , I 54$ (iitutln OM.Ica gt Ihi CtiiiDtnt Saieiu l Itii l! NEA T.l.photo BUDGET ESTIMATED In conjunction with President Eisenhower's budget mes sage to Congress, the Bureau of the Budget estimates the fate of the tax dollar for the fiscal year 1961. This chart shows where the dollar will come from and where it will go. I88o I90o 92o 940 I860 1940 I960 A HUNDRED YEARS IN THE HOLE The nation's public debt of $65 million a century ago seems almost- infinitesimal compared with today's. A decade later, as a result of the Civil War, it was over the $2 billion mark. Sketch above shows the debt history in 20-year intervals. After the Civil War high, it declined, on the average, until boosted by World War L A whittling down of about $8 billion during the '20s was nullified by the depression and the beginning of World War II. Today, the government is spending as much for interest alone as the entire national budget in 1940. The debt is currently running at $291 billion, but hopes are that it will wind, up .around $284 billion at the end of the fiscal year. Emissary Called Home From Cuba ; WASHINGTON . (AP) The United Stales summoned Ambas sador Philip W. Bonsai home from Havana today, less than two weeks after he returned to his post. There were strong indications of official exasperation at indignities authorities feel America has suf fered at the hands of Fidel Castro. . The big question remained, what can Washington try next to change the course of the bearded Cuban premier without hurting its rela tions with the other psychological ly sensitive Latin American States? Diplomatically,. Uncle Sam was In the unhappy shoes of the visitor being kicked in the shins by a small boy of the family while not daring to lift his fist in reprisal Bonsai was expected to arrive In the late afternoon. Secretary of State Christian A. Herter said Thursday the career diplomat was hpine returned for "consulta tions." He had returned to Ha vana on Jan. 10 after a month of similar consultations. The new move falls short of a break in relations with the Castro regime. But U.S. officials made plain they are in no hurry to send Bonsai back. The Havana cmDas- sy meanwhile will be tended by the No. 2 man there, uaniei si Braddock. The new low in U.S.-Cuban rela tions was struck Thursday after Castro went on a radio-TV broad- f.-ist. The Spanish ambassador be came so outraged at Castro's al legations of criminal ties by his embassy that he stormed the hroadcasling studio. Castro kicked him out of Cuba, and he too leaves there today. U.S. authorities viewed Castro's mtack on American Embassy acti vities as even more severe. Herter (old the Senate Foreign Relations Committee, according to Chair man J. W. Fulbright (D-Ark) that Castro was "very insulting to the American ambassador, the American government and the American people." American officials said the Cas tro broadcast came on top of: 1. Repeated attacks on the United States by Castro-run news- naners and radio stations. 2. Attacks on Vice President Richard M. Nixon, who recently said in Florida that the Castro re gime is not creating an attractive climate for U.S. investment Cuba. 3. Attacks on Bonsai, who has been applauded in public appear ances in Havana by Cubans who don't share Castro's view. 4. Absence of any diplomatic re ply to a U.S. note of Jan. 11 pro testing what Washington said was Illegal seizure of U.S. property in Cuba, In violation of Cuba s ow laws. A Castro newspaper Hiumbed Its nose at the U.S. pro test In Its columns. Mart Believes Tax Slash Would Boost Business FCC Plan Given Okay By Networks NEW YORK (AP) The three major television networks nave reacted favorably to a suggestion by the head of the Federal Com munications Commission that a half hour every weekday nijht be voted to purely cultural pro grams. FCC Chairman John C. Doeifer put forth his proposal Thursday in speech before the Radio and Television Executives Society Doerfcr suggested that the three networks and their affiliates alter nate each week in setting aside i) minutes from 7:30 p.m. to 8 p.m., Monday tnrougn rrinay lor programs consisting solely of in formation, education and culture. Dr. Frank Stanton, president of Columbia Broadcasting System said Doerfer's idea "makes a lot of sense and deserves prompt and serious consideration." He added, however, that CBS would first get the reaction of its affiliates "since the plan cannot be effectuated without their full cooperation. The National Broadcasting Co said in a statement that Doerfer's plan "deserves thoughtful study! and we intend to evaluate it care fully." The American Broadcasting Co said Doefer s proposal is very provocative and ABC plans to ive it careful study both as network and in consultation with our owned and operated stations and our affiliates." ABC added that it already had increased its public service pro gramming "and plans even more broadcasts in this area during the next year." The FCC has been holding pub lie hearings stemming from dis closures of quiz show rigging and payola for song plugging. Charges at the hearings have included the assertions that both radio and TV shows lack balance and too often are overweighted with "murder. mayhem and mediocrity." For more than 30 years the FCC has, carefully avoided any effort to shape the contents of broad casting programs in view of legal prohibitions against censorship in this field. U.S. Holding Door Open for China Negotiations WASHINGTON (AP)-The United States is holding the door open for Red China to participate m a global disarmament program il negotiations ever reach that point. Officials acknowledge that in- pection stations on Red Chinese territory would be essential to make any arms control plans cf- icclive. This need, in turn, could seme day force this country to take a new lenk at its policy of non - recognition of Communist China. This country has negotiated in formally with Red China on other matters without recognizing the Communist regime, and officials said their present stand has no bearing on recognition. But the issue could be raised cither by the Red Chinese or on their be half by the Soviets in connection with working out any disarma mcnt agreement. Recognition might be presented as the price of Red China's participation. The link between Red China and disarmament was brought to the fore Thursday by statements in Pciping and Washington. In the Chinese capital, Foreign Minister Chen Yi declared that his country would not be bound by any disarmament agreement reached without its formal partic ipation or without the signature of its delegates. In Washington State Depart mcnt Press Olficcr Lincoln White said that if substantial progress is made toward controlled dis armament during the forthcoming negotiations at Geneva, "then it would be logical to consider par ticipation in such a disarmament program by other countries in cluding Red China." Negotiations reopen in Geneva March 15. Ten nations will take part five Allies and five Com munist countries. They include the Big Four the United Stales. Britain, France and the Soviet Union but Red China is not among them. Already under way at Geneva are negotiations among the United States, Britain and the Soviet Un ion looking toward a ban on the Board Decision Due Shortly On Application For Power testing of atomic weapons. Such a ban, assuming it included under ground tests, would have to be supervised by worldwide network of stations equipped to detect ncak explosions of atomic weap ons. Experts have decided that at least 180 stations would be required just to police an agreement to prohibit atomic test explosions. Of the total possibly a score would have to be set up on Red Chinese territory to make the prohibition effective. Thus, if the nuclear talks arc successful, the issue of Red China's participation might arise well in advance of any more ex tensive agreement concerned witli urns reduction and control. In that event, officials said, the same policy would apply as far as the United States is concerned. Chat is, at some advanced point Red China would be invited to adhere to the agreement. Officials said the Red Chinese issue would not necessarily arise if the Geneva negotiations pro duccd only a partial ban on test explosions above ground or in the water. Such blasts of atomic de vices create widespread radio activity which could be detected with relatively few stations, even though the explosions were set off in the interior of Communist China. SALEM, Ore. (AP) - The Ore gon Water Resources Board is expected within a few weeks to render a decision on Pacific Northwest Power Co.'s ap plication for a preliminary permit to build High Mountain Sheep Dam on the Snake River. The board Tuesday completed hearings on the application. A state preliminary permit only would give the firm a priority over other companies for con struction of a dam on the site. An application to build the dam would have to be filed later. Some 22 witnesses appeared at the hearing. The project, if ap proved, would cost 250 million dollars. The dam would be 690 feet high. Fishing interests and public power proponents opposed it- The company, owned by four private utilities, also has asked the Federal Power Commission for a license. If it gels it, the com pany could proceed without a state license. The Idaho Power Co. did that on a project upstream from the Mountain Sheep site. The dam would be 50 miles south of Lewiston, Idaho, and just above the mouth of the Salmon River. The proposed Ncz Perce Dam, whose construction by the federal government is favored by public power groups, would be just below the mouth of the Sal mon, a principal spawning stream. Arthur Porter, Portland Gener al Electric Co. vice president, said if PXP does not get permis sion to build the project, it would be "forced to turn to smaller and higher cost projects lo serve customers." SEE MY OPERATION LONDON (UPI) It looked as though customs men were search ing for contraband as they watched Prince Aly Khan lift his trouscr leg and lower his suck to expose Ins shin at London Air port. But the prince said he was "telling them about a skiing ac cident and I wanted to show them the scar." FOXY FOXES YORK, England (UPI) - Just as members of the Bedale hunt were cornering a fox, they found another fox had been chasing them. In the confusion both foxes got away. LOOK FOR THIS MAN Jan. 25th & 26th HE IS COMING BACK TO Walter C v HELP YOU! Heitkemper FREE HEARING TEST! At Our Office Walter C. Heitkemper, Hearing Clinic Manager, wearer of hearing aid 26 years, will demonstrate the sensational new "Listener" to the hard-of-hearing. Consult the man who wears one! REPAIRS AND BATTERIES FOR ALL MAKES OF HEARING AIDS WE GIVE ZrC GREEN STAMPS CONVENIENT BUDGET TERMS COLUMBIAN OPTICAL CO. 730 Main St. TU 4-7121 rs. Omor J. Noles ond Robert Peters NEW YORK (UPI) Those golden sixties have turned to leaden for the stock market. Gold is a precious metal, con noting high price. Lead is base and connotes cheapness. So goes the market into the 12-cent-a- pound category instead of the $35-an-ounce line the experts had predicted. Wall Street is trying lo decide whether this change has stemmed from anti-inflationary activities or from lack of a tax cut promise. It could be both, say the ex perts. Market men recall that in Iheir election year, the British slashed taxes all along the line. The re sult was a business boom that more than made up in revenue for the loss from taxes. They had anticipated a cut here this year, possibly small, but a cut nonetheless. They had hoped the corporation taxes would be allowed to drop from the present 52 per cent rale to the 46 per cent before the "tem porary" rise was ordered in Korean War days. They had anticipated at least a token per sonal income tax reduction. Wall Street believes that a tax cut would have stimulated busi ncss as it did in Britain. The London Financial Times speaking of our budget, said it should have the effect of curbing rather than stimulating business activity. The newspaper believed the President was thinking more in terms of the nalional debt than in the influence the budget would have on business. But in whatever terms the President thinks of his action. the Financial. Times said, "its practical effect will be to reduce slightly the level of economic activity in the United States Market men reason that the budget itself isn't the cause of the stock market's recession, They point out it was no surprise because the President in his State of the Union message announced he planned on a $4.2 billion surplus. His views on gasoline taxes and postal increases were known. So were most of the other items in the giant budget Over in Britain where taxes were cut, the outlook is rosy for 1960. Experts in all lines are predicting big things ahead and they aren t hedging on the sec ond half of the year as are the American economists. In Britain, the experts look for a rise in housing. Over here they anticipate a decline . from last year's figure. Of more importance, British companies are planning on ex pansion. In the last quarter of 1059 more factory . plans were approved than in any quarter since early 1056, London reports According to the London Finan cial Times, big expansion plans ave been announced in steel and motor cars, and there is a growing demand for labor saving machinery. Noting that the National Insti tute of Economic and Social Re search of London has pointed out that a substantial proportion of British industry is still operating below capacity, the newspaper says editorially: It is doubtful how meaningful this is. In an expanding economy. the sensible industrialist does not wait until he is up to 100 per cent of his existing capacity be fore he thinks of adding to it." Britain had a consumer boom in 1959. This year it looks for a capital investment spurt. Over here there also is ex pected to be a rise in capital spending, but not of big propor- ions. The rise, nonetheless, is expected to take up the slack of housing and leave the building figure overall at a new record high. The stock market currently is bewildered and a bit tired, the experts assert. It has had a great deal of news to digest fears of higher money rates, de flationary influence of a budget balance and no tax cut, the for eign trade uncertainties, and some competition from the bond market. However, there isn't any rush into bonds and with money point ing higher Wall Street doubts there will be much bond demand generated by those now in the stock market. In fact, market men note evi dences of speculative and invest ment demand, and continue to point out that the main ingredient for market success still is super-selectivity. FILES FLIGHT DEATH SUIT NEW YORK (UPI) - Mrs.' Lil lian R. Greenwald of Chicago filed suit Thursday for $2,500,000 damages for the death of her husband in a plane crash. 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