13) 12) WASHINGTON tL'Pli - Presi dcnl Kennedy today sent Congress the biggest budget in history1 come war or peace and one ot the biggest deficits. He called for federal outlays in the 12 months starting July 1 of The FEDERAL BUDGET Payments $122.5 IlltSJf. Si;a 13.1 futtrtatitia! $ff . Snidt, iultMrt 27.4 f eltir r fitras Uttrtj! 6 8 U miithf ii.4 Emotiri Offici of Til Prtsidiitt tttm f Tht Budet In The- ay's Sews By FRANK JENKINS There's NEWS today. Who's making it and where? .Mr. Kroosh is making it in East Berlin, where the Sixth Com munist Party Congress of East Germany is in session. Standing on a COMMUNIST platform and TALKING TO COMMUNISTS, Premier Khrush chev poured scorn on Red China's war and peace theories which are based on WAR, war to the knife, for Communist control of the world. Talking straight to Red China, he warned that neither commu nism nor anyone else can w in in a nuclear war because such a war would bring UNIMAGIN ABLE destruction. Talking over the heads of the East German communist puppcls to the Chi nese communist leaders in Peking,! he said, in effect: 1. The U.S. has 40.000 atomic or nuclear warheads, and if all of them were dropped 700 mil lion to 800 million people would be killed and whole nations would be wiped out. 2. Russia, of course, has an EVEN MORE POW ERFUL atom ic arsenal than the U.S., but there's a catch to it. 3. The catch is this: Russia's 100-megaton bomb 'the equivalent of 100 million tons of TNTi is so fantastically powerful that Russia DARES NOT drop it on West Germany or France BECAUSE I T S EFFECTS WOULD HIT YOU TOO. iBy "you too" he means the com munists of East Germany, Po land. Czechoslovakia, etc.) He added: "The Americans would be un dcr no such inhibition because they would be half around the world from where their bombs WOULD DROP ON US." Thus he implied: "We would be in an impossible position in the event of nuclear war. because the Americans could drop their immense quantities of bombs on us without gelling any kick-bark, whereas our immense ly MORE POWERFUL bombs can't be used ion the European allies of the U S ' because if we dropped them on Western Europe they are so pow erful that they J would blow us off the earth too.' Question: Did Kroosh go loo far'' Did he admit that the U.S. rules the world because of the superiority of its nuclear arma ment? The answer seems lo be NO because he left open the impli cation that Russia tan dmp her lon-megatonncrs ON AMERICA without getting the kick-hack that . would follow if Russia's huge bombs were diopped on Ameri ca's European allies. He tossed thai in to keep from admitting that the United Stales lias the upper hand in nuclear warfare because of the greater abundance of her armament. Summing it up: it looks like Mr. Khru.-hclwv realizes that because of the stub born in-i-trnce of the Red Chinese that W R is lhr a to win the world for communism he is in a tight spot. If that h true, it is an inter esting development. BUD either $98.8 billion or $122 5 bil liondepending on your budget approach. One way would mean a $10.3 billion deficit. The other way the deficit would be $U'.9 billion. But Kennedy insisted that such JSiffurt Receipts $112.2 451 mem tmi . CfntiM ltcai Tuts lltrmtlt U.I IlIM 13.7 licisi - S3f 12.3 n Older Wealhor High ytsftrtfty Low Uit mqht Low ytr aqo Hiqtt patt 14 yetrt Law (Mst 1 YMf Prectp. pit 24 houri Smt Jfl, t Sami period Itit year Sunwl Friday 54 fmn mm Ml Funds Requested For BP A Intertie WASHINGTON UPI Priwi. dcjit Kennedy today 'asked Con- givss for $25.5 million lo begin construction of federal transmis sion lines lo carry Columbia River power to California. Kennedy also told Congress that "prompt action" was expected on legislation intended to assure the Pacific Northwest that power needed in the area would not be drained off through the intertie. "The interconnections will pro vide for the sale and exchange of power between California and the Northwest, resulting in sub stantial economics to both re gions," Kennedy said in his budg et message to Congress. A request for $21.5 million for the intertie was included in a to tal of $74,847,000 budgeted for the Bonneville Power Administration iBP.V during the fiscal year be ginning July I, 1963. An additional $4 million for the transmission Zoning Plan Vote Queried The county court commission ers were asked at Wednesday night's zoning hearing to make a fiat commitment on whether or not the citizens of the suburban community would get a chance to vote on the zoning plan. Almost half of the 38 persons who testified against the propos al at the 7:30 p m. hearing in circuit court No. 2 took time to say that a vole on such propos als was an American right that must not be denied. We can only asumc, some of the opposition said, if you can't lell us now that we will be al lowed to veto on (he issue, that you've 'Ihe county court' already! made up your minds to "cram it down our throals " ; In a statement to the Herald I and News atter the hearing. Ihei court commissioners explained! they were proceeding according to stale statutes in announcing, hoid- ing and studying the le-limonyl derived from the hearings. It wouid nol only be premature, but illegal for the court lo commit) itself beiote all the testimony is heard If the court committed parents, Mr. and Mrs. Robert itself now tlie purpose ot theiGallup, and a baby sister. His hearings would be delealed. Iheyldaddy was not yet home from said iwork. The family lives at 4W0 Tlie commissioners emphasized! that slate law requires that no commitments be made until alter the fcurth and final hearing Whenjmnst of the ditches are dry. tlie commissioners were asked by Mark walked and walked and Uw Herald and News to comment on Wednesday night's hearing. their only comment was that it;to fields and by then it was was the most orderly ei the threelgcttin; dark. Besides it was near heid to dale jly supper time and he was hun- O.Or OSe.LIBRART HEWSPAPER SECTION cauur.Mo wcohehts biv. heavy red-ink spending would be succeeded before too long by budget surpluses and w idely sharp ened prosperity if Congress would approve his new $10 billion tax cut plan. Lecturing the lawmakers, some of w hom are skeptical of reducing taxes w ithout companion spending cuts, the Chief Executive de clared: ''Our present choice is not be tween a tax cut and a balanced budget. The choice, rather, is be tween chronic deficits arising out of a slow rate of economic grow th. and temporary deficits stemming from a tax program designed to promote fuller use of our re sources." Republicans Object Not unexpectedly. Republicans termed Kennedy's spending plans incredible, cynical and illusionary. Democrats who spoke out praised specific programs such as defense and space but were cautious in their over-all appraisals. House Republican Leader Char les A. Halleck of Indiana said the taxpayer would be the loser- cither through inflation fired by bigger federal spending or hy having promised tax savings gob bled up through Kennedy's tax "reforms." Conservative Sen. Harry F. Byrd, D-Va., also was sharply critical. He said that if Congress went along with the Chief Exec utive's tax cut plan, the federal deficit probably would approach $14 billion. He said Kennedy's claimed savings were "question able." As promised in his State of the 9tt Prire Ten t'entv-22 Pages lines was Included in the Jwdget lor California s huge central val ley project. l lie art cudgel request, up sharply from this year s $42.7 mil lion, included nearly ISi million for construction. The funds budgeted for the West Coast intertie made up the big gest single item in the BPA re quest. Interior Department officials said the BPA budget request also included funds for strengthening interconnections with Canada for exchange and sale of power under tlie Columbia River Treaty. The treaty, not yet ratified by Canada, provides for the construc tion of storage dams by Canada. The United States would deliver power to Canada in exchange for benefits credited to Canada water storage. Additional transmission lines al so would be built to carry more power to industries in the Pacific Northwest. Department officials said some 900 miles of high voltage lines and II new substations would be built for the BPA, which is re sponsible for the marketing of electricity produced at 22 federal hydroelectric plants. j The budget also included $3.9 million for boosting the voltage to two 230-kilovoIt lines to the Pugct Sound area to .145 kiiovolts in order to increase the capacity into the rapidly growing area. Oilier new facilities planned to meet growing power loads in cluded: Construction of a 25-mite Its- kilovolt line from Port Angeles to Sappho. Wash., to meet demands of the Ctallum County Public Util ity District. $l.t million. Adventurous Long Walk With His Dog By RUTH F KING A boy and his dog took a walk Wednesday afternoon. The trip had a happy ending. Young Mark Gallup, who is 2'z, took his dog Bites (because hejand neighbors who knew the ro- jbites on little boys' pants legs and went forth to see the world about 4.30 p.m. leaving behind hisan abandoned slaughterhouse. Anderson Avenue where there are fields and fences and open irnga ition ditches. This time of year iclimbcd through a fence or two because he ts all boy He crossed' COIF. Union address, Kennedy held the line or made reductions in such non-securitv functions as agrieul-; ture and the postal service. He said he felt obliged to limit such programs in view of the prospec tive revenue loss under his tax program. No Discount On Defense But declaring that "there is no discount price on defense," he asked for $31 billion in military funds, up $2.7 billion from this year. He also sought a record $6.1 billion for space programs, with most of the $2 billion increase going for the program to land men on the moon by 1970. Tlie President allotted $4.9 bit lion for foreign aid and urged the lawmakers not to repeat last year's deep cuts. He said Bed China's attack on India and Com munist guerrilla warfare in South Viet Nam are "current remind ers" of the importance of the program. Kennedy took two approaches to the budget: newly emphasized "cash budget" which takes into account collections and payments by Uie Social Security and highway trust funds. The old-fashioned "administra tive budget" which excludes these items. The President seemed to prefer the "cash budget" ap proach, pointing out that many non government groups and schol ars believe it provides a "much more complete picture of federal finances. The two methods gave this view of Kennedy's proposals as com pared with the current fiscal year which ends next June 30: 3 IRiFORCB TOUR OF KINGSIEY FIELD Members of the Klamath County Chamber of Com merce Aviation Committee and the city manager visited Kingiley Field Tuesday, Jan. 15. Base Commander Col. Edwin J. Witienburger welcomed the group af a luncheon, and Lt. Col. James B. Selkregg conducted the tour. Shown, top to bottom on jet ladder, are Cliff Clayton, Let Litton, Harold Loibl, Chamber Manager George Caiii ton, Harold "Bud" Cioelie, Met Milter, Jim Olson, Bob Moore, West Coast Alftmes manager; Robert Kyle, city manager, and Joe Sawyer, airport manager, AF Photo Oregon Construction Money Asked WA-SlffNGTON UPf Presi dent Kennedy today called on Congress to provide nearly $2 million for public works eonstitie-j lion in Oregon. Tlie President's budget for the fiscal year beginning July 1 also! called (or an additional $57 mil lion for work on Ihe John Day Dam on tlie Columbia River be tween Oregon and Washinglon. Inc'tficd in the budget present ed to Congrc.-s was $1 million for; deepening the channels ol the Co- Boy Takes ,gry, to be sat down near a fence with Bites huddled up against him. Sheriff Murray Britton and his deputies came lo hunt for Ihe lad bust little boy hunted too along the ditches, in the weeds and through But Mark didn't know he had been missed nor that the neigh bors and men from tlie sheriff's office were looking for him so he whimpered a bit as he sat there. By 5:30 it was pretty dark but he really didn't cry, just whim pered some more And then he was found. John Howard, who lives close by the Gaiiiip home, heard the frightened small noise and found young Mark to end his big adventure. DEFICIT Administrative Budget 1963 i billions) 19W Revenues Spending Deficit $85.5 $94.3 $ 8 8 Cash Budget $108.4 $116 8 $ 8.4 $369 $568 $119 $112.2 $122.5 $ 10.3 would be Revenues Spending Deficit Either way, spending tiie biggest ever, lopping even the peak World War II year of fiscal 1945 when outlays hit $98 3 bil lion. The deficit would be the big gest m peacetime save for the $12.4 billion recorded in fiscal 1939 by President Dwight D. Eisen hower. It also was tile first time a Chief Executive intentionally had sent an unbalanced budget to Con gress since fiscal 1956. Eisenhow er predicted a 52.4 billion deficit that year only to have an eco nomic upswing convert it into a $1.5 billion surplus. Kennedy based his revenue esti mates on the assumption that the Gross National Product the total output of goods and services would rise to $378 billion this year. This would be a relatively modest increase of $24 billion over the IMS level of $354 billion. But even this, he said, is based on the expectation that the, econ omy will see "some initial. ..stim ulus expected from adoption of my fax recommendations." With out fax cuts there would be slow er economic growth and smaller revenues, the President said. "This would indeed be unfortu nate," Kenndy added, "both be cause of the effect on government finances and because of the lost opportunities and the human mis KLAMATH FALLS, OREGON, m x s . - , 's Itimbta and Lower Willamettei rivers to 40 feet and 33 feet. The budget included KO0.00O fo begin construction of the Agate Dam and reservoir in the Talent division of the Rogue River Basin Project, The project was author ized late in the last session of Congress. (ireen Peter Largest Tlie largest single budget item entirely within Oregon was $11, 639.000 to continue construction of the multiple purpose Green Peter Reservoir. Also included was $3 5 million to bring the Cougar Res ervoir within 93 per cent of com pletion. Budget requests for the Bureau of Reclamation included $3,150,000 to continue construction in ihe Western Division of The Dalles Project, including work on the Mill Creek pumping plant in the city of The Dalles. Hie budget included a request for IM2.009 to complete the Bully Creek Dam and reservoir in the Vale Project. Army Work Listed Recommendations for construc tion by the Army Engineers in cluded: Blue River Reservoir, $1 mil lion: major rehabilitation of the South Jeliy at the mouth of the Calumbia River, ivn.ono: tall Creek Reservoir, $3.740,10; !wer Columbia River bank protection in Oregon and Washington. $.ionou0; major rehabilitation of the North Jetty at Tillamook Ray and Har bor, if f million: Willamette Riv er haitk prelection, Jijai.Otio, and sr. s:.ti.'wlil, & SHOT TO fortune that would accompany a sluggish economy and growing unemployment. He noted in this connection that the Treasury rait up cumulative deficits of $24.3 billion during the1 past five years even though, he and his Republican predecessor in the White House had anticipat ed surpluses totaling $8 billion. Two Kinds of Deficits "it is now clear," Kennedy said, "that the restraining effects of the tax system on the econ omy were not adequately real ised." The President told lawmakers keptical of his philosophy that there are two kinds of deficits. He said one is a chronic deficit stemming from anemic economic growth. The other, he said, is a temporary deficit resulting from a tax-spending program designed lo spur business activity, provide mure jobs and ultimately increase revenues. "The first type of deficit is a sign of waste and weakness," Kennedy declared. "The second is an investment in the future," While the Chief Executive ,did not disclose his tax-cutting time table in advance of his special lax message fo Congress later this month, he said it would re duce federal income by some $5.3 billion in fiscal 1964. He also indicated that he wants individuals to e,ct tax relief be fore corporations, presumably on the theory that they will pump such funds into the economy al most immediately. Kennedy asked Congress to ex tend the present 52 per cent tax rate on corporations six more months until Jan. I. 1964. On the THURSDAY, JANUARY IT. JSfiJ Yaqmna Bay and Harbor Naviga tion Project. $1.5 million. The budget included $ff,000 for a new planning start on advance: engineering of the Lost Creek Reservoir, a multiple pflrpo- project to be constructed by the Army Lngincers. Sfx Future Projects Funds also were requested for general investigation by the Army Engineers of six future projects: Chelco River Navigation Proj ect $7,000; Coos Bay deep draft! harbor, $15,000; Coquille River Navigation Project, $10,000; Mc Kay Creek flood control, $12,000; Siuslaw Navigation Project, $ff.0W, and a comrefiensive study of the Willamette River Basin, KBO.WM n. . . . mm 1 i it n I Joint School Boards Hire Study By Dickson A. R. Dickson, SfQt Shasta Way, a teacher at the Kairhaven Elementary School and former county assessor, has been hired ny tiie Klamath County Joint School Boards Association to make a study of the changes needed to make Ihe bmindartes f the pro posed metropolitan K'hon) district agreeable to the three school; boards. The action came alter the hoards found that Dr. Clarence E. ffines, professor of education. University of Oregon, would not be available to mane the study. Dkkson'i firs will b to; other hand, it was understood he would ask that the first cut in personal income taxes be made effective July I. Purposes Kxlensi&s The President also proposed an other extension of Korean War ex cise taxes on liquor, beer, cigar ettes, and new cars. Otherwise the levies would expire July t, costing the Treasury $t.6 billion Us annual revenues. He likewise proposed raising another $100 mil lion through new user taxes on air freight and plane and barge fuel. In the field of legislation, Ken nedy renewed his appeal for such Wktc it emiu frm t'M'lt "N 4 htMreTim . ' fmi $ttfitjr, y Wforc it (tw . . J 23t J Tf iephww House Studies Pay Hike For Oregon Legislators SALEM fUPI) A bill settlngiposed revision of thaOregon Coil- legislators' pay at $3,000 a year plus $20 a day while the legists (lire was m session was intro duced In the House today. The measure was sponsored by 42 of the 0 representative, and 19 of the 30 senators. Both Demo crats and Republicans were listed among the sponsors. In the Senate, bills calling for creation of conciliation courts, providing "hazardous duty" pay for all state policemen, and broad- ening the state's obscenity taws ts Include movies were intro duced. Sen. Al Flegel, D-Roseburg, sub mitted the bill calling for $600 a year "hazardous duty" pay for state police. Eight bills were submitted hy Sen. R. F. Chapman, D-Coos Bay. One calls for creation ol concilia tion courts to handle "the full and proper consideration of domestic relations suits." Another requires approval of the State Board of Higher Educa tion in addition to approval by the state board of education lor creation of education centers and community colleges. The obscenity law would he ex panded lo include any person "who presents or directs an ob scene play, dance ... or publishes . anything obscene Another bill by Chapman asks creatbn of an interim committee to study tlie advisability of estab lishing a family court The com mittee would include four sena tors and five House members. Chapman's other measures dealt with employes of the Slate Fair Commission, stippor payments. divorce, and enforcement of sup port procedures. Joint Meeting Set Both the Senate and House adopted resolutions calling for a joint f louse-Senate meeting af 7 p m Jan 22 to review the pro- determine to or three ways to: change the boundaries is the Shasta School and the southwest suburbs (Keno) area. In studying ear of the boundary change he; will consider rhanges in educa tion, the number ol children that will be shifted and the valuation changes. Tonight association meeting has been cancelled to enahlc Dick son lo make some headway In the study and bring some of h 1 1 conclusion! to the next school hoards meeting slated for Jan, 24. CON controversial programs as med teal care for the aged tinder So cial Security and ad to educa tion He again sought a cabinet- level department of urban affairs1 to help cities solve their problems The outlook for both is dim this year although Kennedy partisans hope fo salvage at feast some thing in the f9S4 election-year ses-i Mas of Congress. The President asked for an Im mediate extension ot the present temporary $30S billion ceiling, on (he national debt and said he would seek a further hike later this year, possibly to B9 billion. Me said the debt was expected tol TV -jtf No. TOW f slit ulion. - f In the Home, biff fo repeal free csnfrsversiai Ji amDuianeeitax cnanges tor ttraDerfanss ows renafcthst taw was introduced by Bepv C B, Hoyt, H-Corvallis. A bill to eliminate the $100 license fee for ambulances operated by non-profit organizations was pro posed1 Wednesday by Sen. A. J. Materiel, B-PJewpert. Rep. Richard Eymann, B-Mar- i!s, Introduced s series of tax bills he termed "housekeeping Tax Expert Warns State On SALENS lUPD "Cut my budget $65,000 and you lose $450,000 uV tax collections," tax commission- Fred Hoefke told tlie first meeting of the House Taxation Committee Wednesday. "Let be frank," Hoefke ex plained. "If we have the person-1 net, we can collect the money." Hoefke, commission Chairman Charfes Mack, and commissioner Paul Ltnigcr dominated the com- miftee's first meeting with baek- ground discossioiu ol property as sessments, hwome las firoblems, and timber tax Saws. Committee Chairman Richardl Eymann, D - Marcola, opened the meeting with an explanation of committee rales, and the presen fstfort of a drnen "housekeeping" Special Deer Meet Called A special meeting of sportsmen interested in ihe deer iituation has been called for tonight at the Wiffard ffoicf. The meeting will; open at t p.m., but doors will open at 7 for those who may wish lo come early for pre-meetlng dis cussion. A focal chapter of a budding state-wide organiiation, tentative-1 ly known as tlie Oregon Fish and Game Council, was organized re cently. Boh Pyle U president of Uie local chapter, Ben Morrison, vice! president and George Cook, sec- iclaty-ueasurer. Tlie Board of Director consists of F. E. Spen cer, w. c. Wluthy, c. E. Mil- horn, and Judge Walker, Cres cent Aff those interested in the dee; picture are urged to attend to night meeting. reach $3t biffion by June 3C 1964. In outlining Ms mUitary spend ing requests, Kennedy tsii the free world "must be sreoared st all times ts face the peril el global nuclear war, limited con ventional conflict and covert guer riffa activity." As a result, he said, Ms admin- L!ra!ion will contuse dwetop mens of strettg retaliatory forces capable ot surviving surprise, at- tack and striking back; improved, air and missile defenses, stronger and more flexible conventional forces and a efriHanj faHout shel ter program. - - - The BUDGET DOLLAR (iittiitnnnims) flail Ytat 1961 f stinatt : Weather Klamath Faffs, Tofefak as if Lakeriew Mostly fair through Friday with generally light tMi and little ebegge in tempentsre. Lews tonight S Is laser Klamath, Basin to 12 at Klamath Falls, Highs Friday near 40. (measures." They Included restore- f tfon of Eastern Oregon Umber ap- Fprafsafs to county assessors, and ed by centrally pastes, Tax Bate Eyed They also included a measure identifying financial institutions to enable them "to be faxed at a nine per cent rate rather ftes six per cent, even where time prisei pal activity it the dtscmiBttee commercial paper," Economy tax bill requested by the Tax Commission. Eymann said committee, meet ines would be open to the public "whenever possible, and added that the press would not be ex cluded even from dosed meetings. He outlined the ggvertsstr's pro posed WS 3 fBitttott Wenniuin gen eral fund budget, explained rev. enue sources, and the need to raise an additional $49 miiiion to meet the budget demands. "Our fob fs to fiff that $49 mil lion gap, he explained fo com mittee member. Eymami suggested lieessmg smati otOity trailers ts $n to raise $4-17 miuimt year; said study should be made ol way tax out-of-state corporations. which operate in Oregon through dealers, and mentioned the pos- sibiiity of having withholding tax es submitted monthly instead of quarterly to speed tim flow of cash to the state. Committee member auerttened; Mack at length so the imitorBt nes of appraisal methods used uj counties. Mack admitted ap praisals wre faffing behind to day's standards." Hoefke tarn per cent s! Dra gon s income taxpayers pasa per cent of the tetat tax ceUeeted. Execution Stay Given Freeman SALEM ftTfl-A second tay of execution for condemned cftila s layer Jeannavt June Freemas was granted today hist It day before her scheduled Jan, Si est cuison date lot the. murder s! 6-year-old boy. The Oregon Supreme Ofcrt granted the stay to allow Mis Freeman attorney time to file a petttfcm for certiorari wh th U.S. Supreme Court