COIP.
Eisenhower Budget Hits
ime High; Predicts A $1.5 Billion Surplus
U.Or ORE. LI 0-1 ART
WASHINGTON (UPI) - Presi
dent Eisenhower willed President
elect John F. Kennedy a record
peacetime spending budget of
$80.9 billion tor fiscal 1962 today
and strongly advised his successor
gainst running the government
"by credit cards."
In his final budget message to
Congress, the outgoing chief ex
ecutive predicted a $1.5 billion
surplus could be achieved in the
fiscal year starting July 1 if pos
tal rates arc raised again, if the
gasoline tax is increased, if busi
ness expands smartly.
He held out no hope of a gen
eral tax cut in the foreseeable
future. .
And he called for increased pri
vate, state and local spending on
activities which now "require a
disproportionate or wasteful ex
penditure of federal funds."
Will Be Revised
Eisenhower's budget will be re
vised by Kennedy after the new
President takes office Jan. 20. The
extent of these revisions is not
yet known, but Kennedy aides
have been working in cooperation
with the Eisenhower administra
tion's Budget Bureau since No
vember. The new Eisenhower spending
program, $1.9 billion higher than
the current year's estimate, con
templates: ,
A $1.4 billion rise in defense
spending, -with increased emphas
is on missiles -and defenses
against missiles. This would give
defense a peacetime high total of
$42.9 billion, biggest item in the
budget.
A $250 million boost for for-
eign aid, raising the program to
$3.6 billion, with greater emphas
is on efforts in Africa and Latin
America.
Postal Rate Increase
A $195 million increase for
space projects, for a total of $965
million, more than double the I960
figure, with hope of rocketing the
first American into -orbit this
year.
An improved economy, to pro
vide added revenues to pay the
increased federal bills.
A postal rate increase of un
specified nature and a half-cent
WASHINGTON (AP) Your
hare of President Elsenhow
er'! new spending budget Is
$436.83.
That's the way the record
outlay of $80.9 billion works
out when divided by 18S.2 mil
lion the estimated population
next Jan. 1, midpoint of the
1962 fiscal year.
The total Is $3.79 higher for
every man, woman and child
than the per capita cost of this
year's $78.9 billion federal
spending.
There will be about 1 mil
lion more Americans to share
the load a year hence, but the
budget total Is $2 billion higher.
a gallon boost in gasoline taxes,
to help balance the budget.
Recognition of the so-called
"dollar gap" in planning for U.S.
expenditures overseas.
Eisenhower hammered on the
need for sound fiscal policies and
on his confidence in America's
economic position. He said he was:
proposing a balanced budget be
cause a surplus is needed "in
good times" to make up for in
evitable deficits in recession
years. ,
Money Left Over
With congressional cooperation,
he said, there could be money left
over in fiscal 1962 to make "an
other modest payment" on t h e
huge national debt.
"This budget, like each of the
seven which I have previously
sent to the Congress, reflects the
confliction that military strength
and domestic advancement must
be based on a sound economy,
and that fiscal integrity is essen
tial to the responsible conduct of
governmental affairs," Eisenhow-i
er said.
He said his estimates reflected
"expected gains in the national
economy and provide for carry-
ling programs forward in an ef
ficient and orderly manner.
"If, however, we deliberately
run the government by credit
cards, lmprovidently spending to
day at the expense of tomorrow,
we will break faith with the
American people and their chil
dren, and with those joined with
us in freedom throughout the
world," the President said.
Here is how the Eisenhower
budget for the government book
keeping year that begins July 1
compares with estimated figures
for the , current (19611 fiscal
year:
1961 "
Receipts
Spending
Surplus
Receipts
Spending
Surplus
1962
$79,024,000,000
$78,945,000,000
$79,000,000
$82,333,000,000
$80,865,000,000
$1,468,000,000
Eisenhower said the estimated
surplus of $79 million for the cur
rent fiscal year is possible if Con
gress boosts postal rales by April
1. Congress ignored an Eisenhow
er proposal last year for a postal
rate increase.
Without the postal rale hike.
Budget Director Maurice H. Slans
said, the Post Office would run a
deficit of $160 million April,!
May and June, toppling this year's!
budget into the red if everything'
else goes as planned. '
Stans also expressed at a news
conference the administration's
view that the Kennedy camp has I
been unduly negative about t lie 1
business situation. "A few state
ments of confidence on the part
of the next administration will do
more for the economy than bil
lions of dollars of fast spending,"
he declared.
I "There are no deliberate anti
recession actions in this budget,"
Stans added, because they are un
necessary. He said the adminis
tration, like Kennedy's advisers,
was assuming business would
climb in 1961 to $510 billion to
$515 billion, compared to a rec
ord $.i03 billion in I960.
Democrats Skeptical
In submitting his 1961 budget
last year, Eisenhower had fore-
WASHINGTON (AP) This
Is where ynur federal lax dollar
will go, under the fiscal 1962
budget:
National security, 57 rents,
Interest on debt, 11 cents.
Veterans, 6 cents.
Agriculture, 6 cents.
Paying off debt, 2 cents.
All other, 18 cents.
And this Is where the budget
dollar comes from:
Individual income tax, 55
cents.
Corporation taxes, 25 rents.
Excise taxes, 12 cents.
Other receipts, 8 cents. ,
cast a $4.2 billion surplus. But he
said today that Congress cut $2
hillinn frnm tlm amnnnt hv on.
lading spending measures and re
fusing to raise postal rates. Low
er corporate profits cut lax rev
enues and further bit into the sur
plus. , '
Eisenhower's optimistic apprais
al of the economy was backed in
a statement by Treasury Secre
tary Robert B. Anderson. The
cabinet member said that even
though Industrial production and
employment declined in calendar
I960 the economy would "advance
lo markedly high levels" this
year and the budget was pegged
accordingly.
The incoming Kennedy adminis
tration and Democrats in control
of Congress disagree or at least
are skeptical about any such rosy
outlook. Their own viewpoints will
temper final action on spending
and tax proposals.
Other budget proposals:
Finances: Extend corporate
and excise tax rates beyond their
scheduled reduction or termina
tion on July 1; provide "equitable
taxation" of cooperatives; tem
porary raise the temporary debt
limit of $293 billion scheduled to
expire June 30.
Government Reorganization:
Establish a new department of
transportation: strengthen the po
sition of chairmen of the Inter
state Commerce Commission,
Federal Communications Commis
sion, and National Labor Rela
tions Board; put civil water re
sources functions under consoli
dated control.
Civil Defense: Enact legislation
to require "appropriate (radioac
tive) fallout shelters in certain
new private construction where
the federal government provides
some form of financial assist
ance." Labor and Welfare: Extend
coverage of unemployment com
pensation system to three million
additional workers; extend cover
age of Social Security's old-age
and survivors insurance system to
federal civilian employes and to
physicians: broaden the existing
voluntary federal state programs
of medical aid for the aged.
! The-
Day s km
By FRANK JENKINS
As required by law and cus
tom, outnoina President Eisen
hower sends to the congress the
following budget estimates for the
fiscal vcar of 1962. which will
end on June 30, 1962; 18 months
hence:
Income $82,333,000,000
Expense $80,865,000,000!
Surplus $1,468,000,000
For the current fiscal year,
vhich will end on June 30. 1961,
approximately five months hence,
he foresees income, expense and
surplus as follows:
Income $79,024,000,000
Expense $78,945,000,000
Surplus $79,000,000
(According to law and custom,
Incoming President Kennedy
won't submit a budget of his own
this year. But he will suggest
piecemeal changes in the Eisen
hower budget.)
Some more figures, based on
these estimates:
At the end of this current fis
cal year, which comes on June 30,
the national debt will be $284,900,
000,000. At the end of the NEXT fiscal
year (which will come on June
SO, 1962) the national debt will
be $283,400,000,000.
Which is lo say:
At the 1961 rate of 79 million
dollars a year, it would take us
S.075 years to pay off our na
tional debt.
- But-
At the rate of the 1962 fiscal
year (which is estimated to yield
a surplus of $1,468,000,000) it
would take us only about 195
years to pay off our national
debt assuming, of course, that in
these intervening years we didn't!
get extravagant and run up a big
deficit.
So-
You see
' WE'RE MAKING PROGRESS.
; If we could keep on doing as
well as Ike HOPES we may be
able to do in 1962. we could be
out of debt in less than 200 years.
In conclusion, in order to keep
eur spirits up and our faith in the
future alive, lei's fall back on Mr.
Micawbcr's recipe for happiness,
as set forth in Dickens' immortal
David Coppcrfield:
"Annual income twenty pounds,
annual expenditures nineteen,
nineteen six, result HAPPINESS.
Annual income twenty pounds, an
nual expenditure twenty pounds
ought and six, result MISERY."
Weather
Klamath Falls and vicinity
Partly cloudy with patchy morn
ing fog Tuesday and a few light
showers. Highs 45-50; low tonight
18-24.
High Sunday 43
Low last night 18
Precip. past 24 hours
Since Oct. 1 $.60
Same period last year 1.69
Price Tea Cents 12 Pages
KLAMATH FALLS. OREGON. MONDAY, JANUARY 16, 1961
Telephone TU 4-8111 No. 6585
Wenlher
Mt. Shasta-Siskiyou area
Cloudy with little temperature
change through Tuesday; some
rain probable Tuesday.
Northern California Overcast la
Central Valley through' Tuesday;
general fog tonight; rain north of
Fort Bragg and Redding Tuesday;
mostly fair elsewhere, warmer
Tuesday.
M Mair m mm Collars
o
11
! La
AWARD WINNERS at the annual dinner of the Klamath Reservation Jayeees Satur
day night were, left to right, Hiroto Zakop, Key Man Award; Dale Williams, Jaycee
of the Year; William T. (Timl Hess, Outstanding Young Farmer; Bill Norval, Junior
First Citizen and Mrs. Flavia Yates, Senior Citizen. The awards were presented at the
dinner in the Masonic Hall, with, more than 200 in attendance.
I 1 : ' ' : !:..-- - ... t . .., :
I I I. '-w -ow' I ' Tft -ifi-niii-ir in i f 1 I
Six-Story-High Platform
Toppled By Winter Storm
NEW YORK (AP) - Cryptic un
derwater sounds hinted today
there may he survivors trapped
beneath the sea in compartments
of a storm-wrecked Air Force ra
dar tower.
DIGNITARIES and Jaycee officials participating in the sixth annual Reservation Jay
cee award dinner Saturday night seated at the head table were, left to right, Mr. and
Mrs. Irwin Crume, Mr. and Mrs. Layton Hoback, Dr. Cliff . Robinson, speaker, . Mr,
and Mrs. John Plouffe. Mr. and Mrs. Ron Harrison, Mr. and Mrs. Luther Sherior
and Rev. Fr. Simard. Plouffe was master of ceremonies of the event. Harrison is pres
ident of the Reservation Jaycee chapter. .
Reservation Jayeees Pick
Five For Service Awards
!
Presentation of awards to Klam
ath Reservation Jayeees was the
highlight of the sixth annual dis
tinguished service awards banquet
in Masonic Hall, Chiloquin, Sat
urday night.
Principal speaker for the event
was Dr. Cliff Robinson, Klamath
County superintendent of schools.
Honored at the banquet were
Hiroto Zakoji, Jaycee Key Man;
Dale Williams, Jaycee of the
Year: William T. Hess, Outstand
ing Young Farmer; Bill Norval
Red Forces
Move Ahead
Castro Forces Trigger Attack On Rebels
The responsible citizen will be
dedicated. He will examine the
rights, privileges and responsibill
ties of living in a democratic so
ciety as he has never examined
them before. He will believe in
our form of "government and our
institutions. j goSTON (AP)-An angry crowd
Jaycee resident Hon Harrison estimated by police at 10,000, hurl
ing eggs and tomatoes Sunday
ripped a swastika off George Lin-
Nazi Style Pickets
Throwing Target
HAVANA (UPIi A govern-1 oral days of "softening up" of the
mcnt force of 30,000 men, be-: rebel stronghold in Las Villas
lieved led personally by PremierjProvince by a massive array of
Fidel Castro, was reported baltl- artillery, mortars,
ing heavily-armed rebels in thelolhcr weapons, the sources said.
presided at the dinner, which had
John Plouffe as master of cere
monies. First vice president of
Reservation Jayeees is Bill Nor
val and second vice president is
Junior First Citizen Award, and i David Northup. Dr. R. I. Kerwood
. VIENTIANE, Laos (UPl'-Five1
days of rocket strikes by Laotian
government pilots in U.S.-sup-
plied planes have failed to halt
the advance of pro-Communist
forces in the strategic Plain of
Jars region, informed sources
said today.
Mrs. Flavia Yates, PTA Senior
First Citizen Award. Making the
presentations were Ron Harrison,
president of the Reservation Jay
eees; lrwin uume, punier aiici
ier and Cordelie Hoback.
In his talk, "A Time of Oppor-
tunity, Dr. Robinson oumnea
the human values mat c o u i a
is secretary and Dale Williams is
treasurer. Plouffe was 1959 presi
dent.
coin Rockwell, self-styled "fuehr
er" of the American Nazi Party,
and routed an attempt by him and
four "storm troopers" to ' picket
a downtown movie.
In Chicago, a group of pickets , allcScd subversive activities
wearine armbands and calling I several years ago.
Harrison lauded aKoji a n a themselves the Fighting American
the city with a police escort.
The Chicago pickets said they
were protesting the hiring of Dal
ton Trumbo to write the screen
play for "Exodus." Trumbo was
one of a group of screen writers
who refused to answer certain
Escambray Mountains of central
Cuba today lo keep the insur
gents from culling the island in
half.
Peasants were moved out of the
bombardment area beforehand.
The government force was be
lieved one of the most formidable
Reliable sources said Castro assembled by the Castro regime
was throwing a full force against
the estimaied 4,000 rebels led by
questions of a Senate investigat
ing committee during a hearing
Nationalists were escorted away
from a Loop theater by police af-l
ler scuffling wilh patrons. Police
'dispersed a crowd estimaied at
make this world a better place 1959 winner, and the Junior First
in which to live. "We have noNton Award was made by Lu
learned how to be cremated to
getherisn't it time we learned
to live tocether?" he asked.
Williams for their contributions
to Jaycee work and special ac
tivity the past year. Presentation
of the Young Farmer Award was
made by Irwin Crume, who was: 200
Both theaters were showing the
same film, "Exodus," a story of
the Jewish migration to Israel
and the establishment of the Jew-
Dr. Robinson outlined the re-;jic H0back
ther Sherier, 1959 winner. Presen
tation of the PTA Senior Citizen
Award was made by Mrs. Corde-
quirements of the type of individ-
Harrison expressed the appre
ciation of the Jayeees to people
of the community who had con-
irikntnrt time offnrt anri mnnpv
to the programs of the Jaycees.jp!'olclv
Reports fiom the region said the, ual that is needed to tultill nis
Pathet Lao rebels were continuing i responsibilities to mankind. He
to push into government territory listed:
from the plain, which has been in He will be a person who is will-
rebel control for some time. ing to accept changing conditions. Klamath Falls Jaycee President
Pro-Communist units were said Since everyone of us is constantly j0hn Heilbronner extended birth
to be especially active in the Nam subjected to a rapid tempo of day greetings to the Reservation
Nhiep Valley where they drove change in almost every facet efuni( and presented a large birth
povernme.it forces out of Ta life, it is imperative that we adapt day ca(ei He also presented to
Viang four days ago. Ta Viang ourselves to changing conditions Harrison several birthday grect-
leaa useiui ana inp.s and a copy ot tne boon
"Young Men Can Change The
World," the Jaycee story.
Pope Names
4 Cardinals
Maj. Evelio Duque lo block a re
ported plan to land an "opposi- dicrs who have received special
tion government somewhere in training.
eastern Cuba.
Both sides were reported to
have suffered casualties, but no
figures were available.
The all-out effort followed sev-
NEW YORK (API-Battered by
a howling winter storm, an Air
Force radar tower collapsed and
disappeared with 27 men aboard
in heavy seas 80 miles southeast1
of New York City Sunday night.
Rescue ships and aircraft raced
lo the scene, but found no sur
vivors from the six-story'-hiBhl
structure thai was part of the Air
Force s cany warning system.
A mattress, , a life ring, an oil
slick and debris were the only
clues to the tragedy.
' The first hint, that the 14 Air
Force men and 13 civilian work
ers were in trouble aboard tne
structure called a Texas Towerj
came at 7: 15 p.m. when a Navy
ship picked up a distress signal.
The vessel, the "Talk-17," a
Navy ship that supplied the low
er, was only 12 miles away when
it received the "May Day" . or.
SOS.
For 10 suspenscful minutes,' the
ship fighting high winds and 35-
foot waves maintained radar and
radio contact wilh the doomed
tower. Suddenly, Ihe tower's ra
dar image disappeared.
There were two life boats at
the tower and searchers hope sur-i
bazookas and vivors were able Id escape.
The aircraft carrier Wasp, ac
companied by two destroyers, was
about 80 miles from the scene
The big flattop took charge of
rescue attempts as Coast Guard
cutlers and other ships joined the
search.
Two Coast Guard planes and:
helicopters from the Wasp man
aged to take to the air early to
a large amount of debris" about
nine miles from the tower site.
Ironically, the tower was under
repair because of another storm
Hurricane Donna when trag
edy struck. The hurricane last
September had severely damaged
the 8,000-lon tower, forcing the
Air Force to evacuate most of
the 90-man complement.
But for that, the tragedy could
have been worse.
UH Officials
ish slate.
VATICAN CITY (AP) - Pope
I TnKn VVflT AmU r lUr,
Rockwell, of Arlington Va., andjCo flf Cardinas mct in secret
his companions were led away js, tod (Q c,evalc Arch.
Ilinm , nil n - i -In flnnr nt I ho I lin-l. . "
....uup. 3..o bjsh j h j. RUer o( S(
ter, taken to a police station in , . ,. , .. .
laics to the Roman Catholic
from Russia and other Commu
nisi bloc nations, and the
hundreds of militiamen and sol-day when visibility - diminished
by driving snow and sleet lifted
somewhat and snow turned to
There were reports that at least rain.
1,000 men with heavy equipment But flares dropped into dark
had landed somewhere in south- storm-tossed waves showed only
crn Cuba and had succeeded in a few traces of the $20-million
linking up wilh Duque's forces, tower. The Wasp reported finding
CongoTruce
LEOPOLDVILLE, The Congo
(UPI) United Nations officials
negotiated today for the withdraw
al of pro-Lumumba troops from
northern Katanga province in an
effort to defuse one of the mora
explosive situations in the Congo.
Reports from Stanleyville, cap
ital of Oriental province and seat
of power of the supporters of de
posed Premier Patrice Lumumba,
said Gen. Victor Lundula had
agreed to talk about pulling hit
forces out of Manono.
About 600 ol his soldiers moved
into the town, in northern Katan
ga, last week and proclaimed a
new state. Katanga provincial
President Moise Tshombe sent
armed reconnaissance plane
against them on strafing mission
Thursday.
The United Nations got Tshombo
to stop the aerial attacks while
they tried to talk Lundula into
getting the troops out.
Ethiopian Gen. Mangasha Iyas-
sou, chiet 01 stall ot u.N. lorces
in the Congo, flew to Stanleyville
Saturday and was reported to hava
won preliminary agreement from
Lundula and Communist-educated
Antoine Gizcnga, once Lumumba's
right hand man.
custody and later
placed aboard a New York-bound
plane. No charges were placed
against them.
Church's princely ranks.
Promptly at 9:30 a.m. Ihe warn
ing announcement of "exeunt om
At BootWay Harbor, Maine, ncs"ail eut-was sounded, and
fs 20 miles south of Xieng Khou- if we are lo
anc. 1 healthful lives.
Government T6 training planes,
all obsolete American models.
He will be compassionate. That
is will be compassionate in
Quake Strikes
strafed and rocketed rebel posi- things othr than materialistic.
tinnc in iho Ta Vianff slionchold He will be tough. Here, Dr.
Sundav to Irv to keen the Reds Robinson pointed out the ncees-
from 'consolidating their gains. Isity of being tough morally as
11 nhvsicallv. He also point-! TOKYO (AP)-A mild
urgents were constructing air'ed to the 'necessity of achieving quake was felt in downtown Tokyo Rockwell
strips at Ta Viang, using a num- individuality - not necessarily ol for, one minute today,
comedian George R.
and
(Doc:
radio
Rock
Ihe massive doors of the Vatican
Killer Winds Hit Atlantic Coasft;
Snow, Freezing Rain Chock Boads
well, a close friend of the lale
Fred Allen, identified the Ameri
can Nazi leader as his son, a for
mer Maine artist and publisher.
"He gels off on these things
every so often," the father said
Mounted police and foot patrol
men battled the Boston crowd for, of Caracas, Venezuela, and Luis
earth- more than an hour to rcscue.Concha Cordoba of Bogota, Co-
Palace s Consistorial Hall were a massive air and sea search (or
By United Press International jtrihutcd to the slorm. "the worst tide situation In 25
Gale-force winds with killer 1 State poiice in New York, Ncw'ycars." :
strength hurled winter back onto Jersey and Connecticut urged mo- In the Pacific Northwest, snow-
the North Atlantic Coast today, tonsts to avoid unnecessary trips, melting rains in the mountains ot
Alona the New Jersey coast, res- Rain also made highways from western Washington posed a flood
cuers fought rain sleet and fog in Florida through the Carolinas threat and Army ducks took 301
closed on the Dontiff and the card- 28 persons who vanished when a
inals in Rome.
Cardinal Ritter received his big-
the Pontifical
College. Two
North
Latin
treacherous and a rain drenched 1 persons from homes in the upper
curve near Ramscur, N.C., waslSkokomish River Valley.
lictlo at
American
American archbishops elevated early warning delcnse system, coi-i
today Jose Humbcrto Quinlero, lapsed Sunday night under winds
that brought death as they lashed
lonely Air Force radar platlorm blamed for a Iwo car collision that
tonnlcd into the ocean 65 miles took five lives. .
offshore. I Across the nation, ocean waves
The tower, part'of the nation sisurging alon steadily rising lidcsjway.
threatened 50 coastal homes in the; Bad weather cancelled plane
The rains Sunday touched off
dirt slides that demolished three
homes and blocked a state high
but
and his companions.
no: Rockwells snirt was lorn in me
fcer of trucks. being a rugged individual nut a (damage or injuries were rcponca.
For the first lime, the Laolian person who thinks and acts ac- The tremor struck at 4 20 p.m
AlfAt- Murl.yl a Airnft nil Anp i pirH in 0 In Ihe dictates of his own 'Officials said it was centered in
l.. "" " ........... ,L. .. D.nln.
of the planes knocked out
truck with a rocket.
scuffling.
lombia-wcre notified at the Pon
tifical Latin American College.
Ventura, Calil., area.
About 200 volunteers battled
inland with snow and freezing through the early morning hours
rain. I to construct 10-foot seawalls and scheduled third day of conferences
On land up to four inches of officials sought to have a disaster with President-elect John F. Ken
flights In Palm Beach, Fla., Sun
day and led Vice President-elect
Lyndon Johnson Into an un
1 The fourth new cardinal is snow along wilh freezing rain area declared.
nedy
Meanwhile, President Eisenhow
er, returning for his last week In
. . iL- rt-..:l: Afr D.. mf.1 ' n, ii.a HnFnrA if ar-ritAl at IhAtha
Bncnonrtf niipr in p I ppni exam- me rdLIUV uu vinua I Kiiiinum t,w,,v.t miun 1 n. ...... n. I , '
lination of an issue. least of Tokyo. Ithcatcr and was ordered out efLalin America
A truck bearing IB olhcr Rock- Msgr. Giuseppe Ferrcto of Ihe chocked highways from Wash- Officials said Ihe rising waters
well followers was intercepted bviVatican Curia, the secretary of ington, D.C., into southern New; were apparently touched off by an
Pontitical Commission for England. Three tratlic deaths in earthquake that rocked Los An- the wnite tiousc, motored 60 mites
metropolitan New York were at-geles Friday night and termed Itifrom Maryland 1 Camp David to
Washington along snow-slick highways.
The January thaw in the Mid
west also brought problems. An
Army reserve unit training near
Buffalo, Minn., struggled to ex
tract a pair of 50-ton tanks from
6-fect deep mud. ,
The forecast for today indicated
continued rain, snow and sleet In
the Northeast. The Weather Bu
reau 'warned another day of
hazardous driving in the area.
Cold moved in on the heels of
the storm early today, dropping
the temperature to 7 below zero
at Caribou, Maine.
Rain was expected for the North
west again today, adding to tha
flood threat as the Snohomish and
Stillaguamlsh rivers in Washington
wera reportedly only a few cot
from flood level.