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Smct Jan. 1
Samt period lail ytar
Sunrii Tuesday
Suiutt Tutwliy
54
11
Tke
By FRANK JENKINS
What's new today?
Well, on the world front, Soviet
Premier Nikita Khrushchev has
told President Kennedy he is will
ing to accept TWO OR THREE
on-site inspections per year
an effort to negotiate a nuclear
weapons test ban.
In an exchange of letters made
public last night. President Ken
nedy replied that he is "encour
aged" at Mr. Kroosh's agree
ment to the PRINCIPLE of on-
site inspection for policing a test
ban.
But, he added, he doesn't think
Khrushchev's offer goes far
enough to assure an adequate sys
tem of safeguards. As to Liat, he
is undoubtedly right at this mo
ment in history.
What may come of it?
The U.S. state department says
In a formal statement this morn
ing "it is to be hoped" that the
Soviet Union now will negotiate
"on the number of such inspec
tions and other related arrange
ments in a realistic and mean
ingful way."
"High U.S. offic: ils" discussing
the reversal in Soviet test ban
policy stripped short of saying
that it represents a real break
through in the long deadlock of
test -ban talks with Russia, b u t
they think it MIGHT lead to a
breakthrough in the near fu
ture. What to think of it all?
Let's put it this way:
We are quite certain that we
have nuclear weapons enough to
blow Russia to kingdom come, if
we should turn them all loose at
one time. Mr. Kroosh about half
admitted tliat in a statement the
other day.
And-
II teems reasonably certain that
if she got them all off at once,
and their aim was good enough,
and if her targets in the U.S.A
were widely enough scattered-
Russia has nuclear weapons
enough to blow US to kingdom
come.
That being true
As it seems to be-
Nothing could be fantastically
. CRAZIER than sailing ahead on
a course that leads inevitably to
destruction of tlie world as we
know it.
The btg need of the world, at
the rjresent moment, is a little
plain common sense on both sides.
Ambulance Fee
Bill Submitted
SALEM iLPH-Scn. A. J. Na-
teilinc. D-Ncwport. submitted i
bill in the Senate today to climi
rate the $100 license fee (or am
bulanccs operated by non profit
organizations.
A bill enacted by the 1961 leg
islature required all ambulanccl
operators to pay the fee. Sincej
that time nonprolit groups wnicn
operate ambulances as a commu
nity service have objected to the
cost of the license.
Day's lews
JAYCEE BANQUET The Klamath Reservation Junior Chamber of Commerce held
its seventh annual distinguished service awards banquet Jan. 19. Participating in the
program were, from left, John Plouffe, master of ceremonies; Dr. Kerwood, Jaycee
oreiident; Raymond Horton, Jaycee of the year, and Alex Smith, Winema National
Foreit superviior, who was guest speaker. Presentation of $1,000 to the Chiloquin
Hiqh School football field lights fund and S300 to the Little League Winema team
was med! during the evening.
1
Herat
11
MHO
(Itill
1.71
7:11
S:
Price Ten Cents 12 Pages
WASHLNGTON (UPIl - Presi
dent Kennedy today forecast
moderate business gains this year1
and appealed to Congress to give
the economy an added stimulus
by cutting taxes.
The President said in his an
nual Economic Report that he
wants his proposed reduction in
individual income taxes to take
effect next July 1.
He also asked the lawmakers
to cut corporate tax rates from
30 to 22 per cent on the first
$25,000 of income, retroactive to
Jan. 1. A bigger corporate lax
reduction will be proposed later.
As he did in his State of the
Union and Budget messages,
Kennedy emphasized his tax cut
plan. Without it, lie suggested,
there might be a recession and
tlie $11.9 billion deficit projected
for fiscal 1964 might go even
higher.
Reaction Split
Initial congressional reaction to
the Economic Report generally
was split along party lines, with
Republicans accusing Kennedy of
fiscal irresponsibility and Demo
crats praising his proposals.
House Republican Wliip Leslie
C. Arends. III., said cuts in fed
eral spending could be made
"without damaging national secu
rity." Rep. Gerald Ford, R-Mich.,
leveled the charge of irresponsi
bility and said, domestic spending
should be cut back to the 1962
level.
Senate Democratic leader Mike
Mansfield, Mont., hailed Kenne-
idy's program as necessary to
continue economic recovery ana
avoid another recession. Senate
Democratic Whip Hubert H
Humphrey. Minn., said the tax
cut would stimulate purchasing
power and thereby employment,
Tlie President' tax cutting pro
posal as a device for stimulat
ing economic growth has gen
erated considerable congressional
criticism.
In his message today, Kennedy
aooeared to be trying to reassure
the skeptical, convert the adam-l
Train Crash
Injures 245
PHILADELPHIA UPI - A
crowded Reading Co. commuter
train rammed tlie rear of another
packed electric local in downtown
Philadelphia today, showering
huce sparks over the elevated
tracks.
Hospital reports showed that at
least 245 persons were injured
The railroad said an estimated
1,000 commuters were on board
the trains.
Three young girls were trapped
in the wreckage of the six-car lo
cal inbound from Chestnut Hill
which was struck by the four-car
Reading train. The latter had
been put into operation during the
city s transit strike which has at-
fected approximately one million
riders on other forms of trans
portation.
None of the tliree girls was in
jtired seriously.
flTPHW fr gm
rQA ("VVvV :
ant and whip up more support
from the man in the street.
Supports Program
Cliairman Waller W. Heller of
tlie President's Council of Eco-!
nomic Advisers said a 1963 tax
cut would be "insurance" against
a recession.
He said that while the Presi
dent's forecast of moderate busi
ness expansion in 1913 was not
contingent on lax reduction, it
could be affected by it.
Heller told a news conference'
that a tax reduction this year
could speed up the growth rate
of the economy in the final
months of 1963 and result in a
better record than Kennedy fore
cast. If Congress turned down tlie
tax plan. Heller said, "the let
down that would come might be
so strong that it would heighten
the chance of a recession."
The President argued in his re
port that the July 1 lax reduction
would pump a needed blast of vi
tality into tlie economy. He said
it would increase by $6 billion tlie
annual rate of disposable after
tax income in tlie last six months
of 1962. The net effect, on a half
year basis, would be $3 billion.
Predicts Gains
Kennedy predicted tlie nation's
total of goods and services pro
duced this year the gross na
tional product (GNPI would
rise to a record $578 billion. This
would be about $16 billion more
than in 1962.
The outlook for continued
moderate expansion in 1963 is
now favorable," he said.
Kennedy said he did not fear
a recession in J9h3. He is more
concerned he said, about tlie
Solons See
No Tax Cut
WASHINGTON (UPI Senate
leaders believe the chances for a
tax cut this year, as proposed by
President Kennedy, are doubtful.
Senate Democratic Leader Mike
Mansfield, Mont., predicted Sun
day It will be 1964 before Con
gress completes aclion on a new
tax program."
He differed with Kennedy by in
sisting that any tax cut be ac
companied by revenue-producing
reforms in tlie tax system. Ken
nedy has urged that a tax cut be
enacted now as a stimulant to
the economy and that tax law re
forms be considered separately.
GOP Senate Leader Everett M
Dirkscn. HI., appearing with
Mansfield on tlie AFL-ClO's
weekly radio program, said
combined tax cut-reform bill
would be difficult to pass. He
said government spending should
be reduced if a tax cut Is
enacted.
Although tlie President has not
yet sent his tax proposals to Con
gress, he has announced he will
ask for a $10 billion net lax cut.
Kennedy's tax message is sched
uled to go to Congress Thursday.
KLAMATH FALLS. OREGON. MONDAY. JANUARY 21. 1963
usmess
five years of excessive unem
ptoyment, unused capacity and
lack profits.. .that constitutes tlie
urgent case for tax reduction and
reform."
The President said that if Con
gress didn't get moving on tax
reduction, his unbalanced budget
might be jolted.
If we were to slide into reces
sion through failure to act on
taxes, the cash deficit for next
year would be larger without tlie
lax reduction than tlie estimated
deficit witli tax reduction," he
said.
Bob Denies
Air Cover
Promised
WASHINGTON (UPD Atty
Gen. Robert F, Kennedy said to
day "there was never any plan'
to provide U. S. air support for
the ill-fated Bay of Pigs invasion
'The air cover at the beaches
was definitely inadequate but not
because of some last-minute de
cision by tlie President," the at
torney general said.
In a copyrighted interview with
U. S. News and World Report
Kennedy said the plans for the
invasion were drawn up by the
Central Intelligence Agency, but
he said the President gave the
final go-ahead and took full re
sponsibility for the failure.
Kennedy said American forces
were in the area, but tlie Presi
dent had made it clear from the
beginning that "American man-l
power, American airpower and
American ships" would not take
part in the invasion.
However, the altorney general
said if the invasion force had
been spotted by Castro forces be
fore it could land troops, it was
lo return to its base in Central
America. In that event, Kennedy
said American forces had orders
to "protect them from attack."
But there was "never any plan"
to have American planes provide
cover on the beachhead, Kennedy
said. He said the idea of air cov
er was never suggested by the
President's advisers at any stage
of the invasion plani.ing.
Troops Take
Congo Area
ELISABETHVILLE. Katanga.
The Congo (UPIl U. N. troops
entered President Moise Tshom-
he's last military stronghold of
Kolwezi without resistance today,
U. N. military sources reported.
(A U. N. spokesman in 1-eopold-
ville confirmed the report.
The sources said a V. N. ad
vance party entered the city and
secured the airfield without a shot
being fired. They said it appeared
the city will be surrendered peace
fully as promised by Tshombe.
Tshombe has once vowed to dc
fend halanga to the last man.
A U. N. spokesman said Indian
troops crossed Dclcommune Dam.
about seven miles Irom Kolwezi,
and found it intact. There had
been some fears that disgruntled
white mercenaries would carrv
out threats to blow up vital in
stallations there.
Informed sources said Tshombe
and the U. X. military command
Maj. Gen. Prem Chand, would
wait at Kolwezi's airport for
troops being flown in from Elisa
belhville about IR air miles away.
The takeover o Kolwezi ap
peared to bring tne military
phase of the L. N. Congo opera
tion near a close, a, though there
were reports of troop actions in
the Konsoln area and at Baudouin-
ville on Lake Tanganyika Sunday.
'Sources said jcveral hundred
armed halanerse mercenaries
(led Kolwezi Sunday toward the
border of Portuguese Angola. Cen
tral Congo Premier Cyril le Arloula
lias warned that anv mercenaries
captured would stand trial.
' A U. . spokesman in Leopold
ville said Nigerian troops have
completed clearing tlie Kongolo
area, capturing large amounts of
arms and ammunition. U. X.
troops also took over Albertville
lo "restore normal conditions
at the request ( i.e local pop
ulation, the I N. reported. I
Telephone
MUSEUM BOARD The officers of the six-membar Klamath County Museum Board
were reelected to serve another year in office during the board's first meeting of
the new year, Jan. 17. The incumbents, left to right, are Warren Bonnet, chairman;
Hal Ogle, vice chairman, and Mrs. Loraine Quillen, secretary. The other two are
board members Scott Warren and James O'Donahue. Another member, State Rep. Car
rol Howe, is absent from the picture. Warren is the most recent addition to the
group. He was appointed last year to replace Mrs. Leroy Gienger, Chiloquin, a char
ter member of the board who resigned because of other commitments.
Leaders Support Bonding Plan
To Meet College Building Need
SALEM tUPI) A plan to con-.
struct college classrooms by bond
ing and to repay the bonds with
student fees won support today
from House and Senate leader
ship, ' ' "-'.' , ;
House Speaker Clarence Barton
Hopes For
Raised By Khrushchev
WASHINGTON (UPIl - Cau
tious hopes for a nuclear test ban
agreement with Russia were
raised today in tlie unexpected
change of position by Soviet Pre
mier Nikita S. Khrushchev.
The Soviet leader, in a Dec. 28
letler to President Kennedy made
public Sunday night, offered to ac
cept limited international inspec
tion on Soviet territory to check
against sneak nuclear lets.
He also said he would permit
"foreign personnel" to place up
to three unmanned, automatic
monitoring devices, called "black
boxes," on Soviet soil, provided
measures were taken to insure
that such trips were not used for
espionage.
Khrushchev offered to permit
two to three" inspection teams a
year to visit Russia to check on
Winter Hits Midwest
As Death
By tnilrd Press International
Miserv and loss mounted todav
in a re.enuess wmier onsiaugni
... . , ! ,
which enveloped the midlands in
polar ce'd and swirled road-jamming
snows over the eastern
Great Lakes.
The toll of weather-blamed
deaths in the latest siege of icy
sveather climbed past W). Lives
were claimed wholesale in cold
weather tires, on icy highways,
and through freezing and exhaus
tion.
Deep in the southland, the tem
perature dropped to 22 dejrees
along tne n-miie nmx wm-i i
Grande Valley Voselable crops
which had suflered severe dam-
ape in last week s Ireeze were
txinislied acain. hut it appeared
Ihe somitropical valley had cs
caped a killing frost.
Alio in the South, damage was
estimated in the tlioasands of dol
lars in the wake of tornadoes
which whipped over parts of Geor
gia. Alabama and Florida Sunday
Several persons were injured but
there were no fatalities.
Life slowed to a freezing crawl
in Hie Middle West, where low
temperatures included 42 below
TU 441111 No. 1043
It Taxes Cm
torMCTltw 'f wmuiummu .www
... ' vk V ' '
D-Coquille, said it would be a
"sound practice.
I am all for building any
buildings by bonding," he said,
Senate President Ben Musa, D-
tTho Dalles, said,' VI. can't see
anything wrong with ft if it can
Testing Ban
earth tremors which are hard to
distinguish from underground nu
clear tests without on-the-spotl
inspection.
Tins was actually a return to a
position Russia abandoned in No
vember, when it suddenly
refused to discuss any inspection
at all.
But his Dec. 28 letter, a reply
from Kennedy Dec. 28, and a fur
ther Khrushchev letter Jan. 7 all
released Sunday night led to
U.S.-Sovict test ban taiks in New
York last week. These talks will
be moved to Washington Tuesday
with Britain also taking part.
Though U.S. officials were "en
couraged" by Khrushchev's move
they cautioned that Russia has
many times in the past come
fairly close to a test ban agree
ment without actually getting
there.
Toll Rises
(zero at Black River Falls. Wis,
and 3(1 below at International
I . .
- aiis, jijnn. An 80-year-old Jan
21 record fell at Chicago when
the mercury reached 15.2 below.
The 14 below at Springfield, ill.,
and the 8 below at Indianapolis
were also records La Porte, Ind.,
and Princeton. Mo , both regis
tered 18 below.
The snow belt from Indiana lo
New York was clogged again.
South Bond, Ind., had eight inches
of snow along with 14 below tem
peratures and rural schools shut
down in St .Ioeph and La Porte
counties. Eastward, blowing and
drilling snow forced officials to
block 110 miles of the state thru-
May in western New York Sunday
night.
Memphis. Tenn , shivered in 14
degree weather while El Paso,
Tex., registered n low of 18.
Ire jammed Cottonwood Creek
in Buena Vista, Colo., diverting
more than a foot of water into
a dozen homes. Volunteers and
city employes had worked all day
Sunday loosening blocked ice and
ojvnmg tluice-gatcs of dam in
uic town
WiUlnr
Klamath Kails. Tulclake and
Lakeview Fair through Tuesday
with periods if cloudiness. Gen
erally light wind. Utile change
in temperatures. Lows tonight 4
lower Klamath Basin to 10 at
Klamath Falls. High Tuesday 43.
be done in the framework of the'
law."
'Those who want lo be educat
ed, let them pay for It," he said
The plan was suggested Friday
by ..Sen.- Allred- Corbetti : D-Port-
land, and Hep. John Mosser,
Beaverlon.
It would transfer a .specific
amount of student tuition money
into a special fund lo be used to
finance bonds for instructional
buildings, laboratories, and other
classroom facilities.
The money taken from the tui
tion fund would be replaced with
general fund grant.
The plan is similar to the one
now used to build dormitories.
Corbctt said today bonding at
torneys have been asked for an
opinion on the legality of tlie pro
posal. Barton noted telephone compan
ies, power firms, hospitals, and
elementary and high schools all
rely extensively on bonding for
capital construction.
I don't see why It doesn't
make equally good sense for the
stale of Oregon," he said.
Keith Given
Racing Post
SALEM (UPI) Gov. Mark
Hatfield today named Bert Keith.
vice president of tlie First Federal
Savings and Loan Association of
Tlie Dalles to a B-year term on
the Stale Racing Commission.
He succeeds C. A. (Shy I Hunt
ington of Eugene, who has been
on the commission since 1M9.
He also announced the reap
pointment of Dr. W. It. Todd.
AWARD WINNERS Six outstanding citizens were recognized by the Klamath Reser
vation Jaycee!. Recipients or awards, shown with the Jaycee president, Dr. Ker
wood, are front row, from left, Cleta Wampler, Recognition Award; Ronald Wilson,
Outstanding Young Farmer Award, end Ron Harrison, Key Man Award; back row,
Raymond Horton, Jaycee of the Year Award; Roger Wright, PTA Senior Citizen
Award; Frank Hale, Junior First Citizen Award, end Dr. Kerwood.
By ZAN STARK
United Press International
SALEM (UPI) An additional $1.7 million cut
in slate services was ordered today by Gov. Mark Hat
field as corporate income and excise taxes skidded
further below anticipated levels.
Hatfield at a press conference said he was recom
mending enployers' withholding taxes be paid on a
monthly basis instead of quarterly to give the state's
treasury a ?4 million shot in the arm for the next
biennium.
He said it was too late
nues for the current biennium.
lie said because of the
and excise tax returns, he had to cut his 1963-65 bien
nium budget estimates by $4,066,000.
Hatfield said, "selective!'
eductions" would be made
in slate services for the pe
riod to June 30, but he had
not yet determined where
tlie cuts would be made.
He also announced he was pro
posing new legislation to change
truck tax levies. The bill would
cut the fees paid by trucks of less
than 6.000 pounds by .4 per cent,1
ind raise the fees for trucks over
000 pounds by .3 per cent.
lie said tlie new tax structures
would "remove inequities" in the
present law.
The new rates were proposed,
he said, after review of Illinois
Road Test results which indicated
large trucks were being charged
an excessively high license rate.
Altliough the new proposals gen
erally reflect a .S per cent hike
for trucks over 6,000 pounds, he
said In effect it would require me
dium size trucks to pay a larger
hare of the tax and give relief to
big trucks.
Hatfield vetoed a bill two years
ago lo give tax reliel to Dig
trucks, pending results of the road
study.
He said he had not yet had a
chance to discuss the plan with
the trucking industry.
He said he could not yet com
ment on a proposal to finance
higher education classroom con
struction from bonds repaid by
student fees. He said he bad not
yet had time to study the proposal
made Friday by Sen. Allrea uor
beti. D-Portland. and Rep. John
Mosser, R-Beaverton.
He did say, however, he (elt
students should pay a greater
r-
Mark Denies
Dodge Story
SALEM (UPI) - Gov. Mirk
Hatfield denied today he was try
ing to duck responsibility (or a
proposed tax increase.
Mr. (State Rep. Victor) Atl-
ych Is Introducing my bill the
bill that I am supporting," the
governor said flatly.
The measure Is the net receipts
stale Income tax proposal to
broaden tlie tax base and pick up
new revenues.
House Speaker Clarence Barton,
D - t'oquille, said earlier it ap
peared the governor was trying
to shirk identification with the
lax proposal. Barton said he un
derstood the bill would not be in-'
troduccd "at the request of t h e
governor.
Hatfield said his name would
not appear on any bills, but he
said there Is no question that the
tax proposal is his.
Barton said if the Republican
governor tried to avoid Identifica
tion with the tax proposal. Demo
cratic cooperation might cool.
He said Democrats did not want
to appear to propose a tax in
crease "on a unilateral basis."
We will assist ... but I think
the governor ought to be right
up there with us shoulder to
shoulder on this tiling, he said
to pick up such new reve
falling corporate income
sliare of the cost of education,
and pointed to his recommenda
tion that tuition fees should bo
raised.
When asked if he agreed an in
vestigation should be made of
tlie resignation of the director of
the Oregon Primate Research Cen
ter near Beaverton, Hatfield re
plied, "More cooks in the broth
at this time might complicate
things."
Dr. Howard Pickering recently
resigned as director of tlie center
because of a dispute with Oregon
Medical School Dean W. E. Baird.
A probe had been suggested by
Rep. Grace Peck. D-Portland.
Blast Rocks
East Berlin
BERLIN (UPD A mysterious
explosion today rocked an East
Berlin residential area where vis
iting Soviet Premier Nikita
Khrushchev and other high Com
munist olficials were staying.
The blast occurred early this
morning in the Neiderschoenhaus
en district In which East German
Communist boss Walter Ulbricht
also lives.
Some hours alter the explosion
Khrushchev attended the final
meeting of the East German Com
munist parly congress which re
elected Ulbricht as parly chief
by unanimous vote.
Tlie Soviet premier appeared to
be ,in good spirits. He gruined
broadly and got up to shake hands
with Ulbricht. Later Khrushchev
joined lustily in tlie singing of the
Internationale that brought an
end to tlie East Berlin meeting.
Soviet Embassy officials in East
Berlin said Khrushchev was slay
ing in a government guest house
in the east zone iNcioerscnoen
hauscn district. The explosion oc
curred In this district at 3: IS a.m.
two miles from West Berlin's
French sector border.
Cause of tlie explosion, heard by
West Berlin border patrolmen on
duty near the wall, was not de
termined. Because thre were no
Communist reports on the blast
its exact location was unknown.
but West Berlin police said it was
In the Ncidcrschoenliauscn dis
trict. Three Killed
In Traffic
By United Press International
Three persons lost their lives in
traffic accidents in Oregon during
the weekend.
Otis Huffman, 36, Hcrmiston,
was killed when his pickup truck
went off Slate Highway 32 and
overturned near Hcrmiston Satur
day night,
A 56-year-old woman died la a
one-car accident on the Redwood
Highway near Grants Pass Satur
day. The victim was Mrs. Ger
trude Glldden of Selma.
j
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