Macmillan Surrenders
Leadership In Britain
BLACKPOOL, England IUP1'-
Prime Minister Harold Mac-mil
lan today surrendered leader
ship of the ruling Conservative
party for the coming general
elections and said he could not
hope to be prime minister "(or
any extended period."
He did not resign as prime
minister, although that action
was indicated for the future.
In a letter issued from his bed
... in a London hospital where he
underwent a successful prostate
gland operation this morning.
Macmillan urged the Conserva
tive party to choose a new lead
er. Macmillan s decision was con
tained in a letter to Foreign Sec
retary Lord Home.
It was read to the 4.200 dele
gates to the annual Conservative
party meeting. They were
stunned by the announcement.
Macmillan's letter said that
even if the operation proved suc
cessful, "it is clear that I will
need a considerable period of
convalescence."
"I would not be able to face all
that is involved in a long elec
toral campaign," he said. "Nor
could I hope to fulfill the tasks
of prime minister for any extend
ed period, and I have so informed
the queen.
However, a Buckingham Pal
ace spokesman said: "He has not
resigned as premier."
ine ettect ot Ins action ap
peared to be that he was turning
rover the reins of government to
Deputy Prime Minister R. A.
(Rab) Butler.
The 69-year-old prime minis
ter's letter was sent lo Lord
Home in the foreign secretary's
capacity as president of the Na
In The-
Day's JVews
By FRANK JENKINS
The big wheat deal in a nut
shell: We're selling Russia about $250
million worth of the stuff.
We're selling it at the world
market price, which is about $1.30
a bushel. At $1.30 a bushel, the
. sale of $250 million worth, of
"wheat would translate into a lit
tle better than 192 million bush--els.
Getlins rid of 192 million bush
els would cat up a little better
, than one-fifth of the present U.S.
SURPLUS, which stands at a lit
tle better than 900 million bush
els. Which is to say:
Russia gets the wheat which
she needs to feed her hungry peo
ple. We gel rid of about 20 per cent
of our wheat surplus which we
need to do. It costs us about
$300 million just to STORE our
surplus.
According to this morning's dis
patches, the cost of MAKING the
deal would he somewhat in ex
cess of $113 million, since this
wheat exports at about 60 cents
a bushel.
And
President Kennedy says this
morning:
"The sale of the wheat for
shout $230 million and the addi
tional income for American ship
ping I which w ill carry the w heat
to Russia) will REDUCE OUR
BALANCE OF TRADE DEFICIT
and provide income for Ameri
cans." Big question as to Kioosh and
the wheat deal that has just been
negotiated:
Are we doing him dirt?
Or are we saving his bacon
by providing him with the wheat
with which to feed his people.
Anyway
We get rid of a lot of wheal
that was costing us a lot of
money in the way of storage bills.
TJi Figure it out if you can.
It's a weird world we're living
in.
There are limes when it almost
looks like the more you lose the
more you make.
Treafy Goes
Into Effect
WASHINGTON UPI-The nu
clear test ban treaty banning all
but underground explosions for
mally went into effect today with
ratification ceremonies in Wash
ington, London and Moscow.
Secretary of State Dean Rusk
Soviet Ambassador Anatnly F
Dobrynin and British Ambassa
dor Sir David Ormsby Gore ex
changed ratification documents
her and expressed hope for fur
ther measures to ease the cold
war.
Similar ceremonies took place
in Moscow and London. ,
tional Union of Conservative and
Unionist Associations.
Macmillan's leadership has
been under attack by some rank-
and-file Conservatives since the
Profumo sex-and-securily scandal
first rocked the government last
June.
2 Courses Open
If Bill Defeated
Editor's Note This is the fourth In a series of articles on the
proposed Income Tax Measure to be voted on October IS.
Two obvious courses of action are available in the event the
voters defeat the proposed income tax bill on October 15.
The two courses include the
general fund budget, and the second would be the governor calling
the Legislature back into session to deal with the problem.
There is no question that a great amount of chaos and con
sternation will exist if the hill, designed In raise an additional
$64 million in revenues, is turned down by the people.
The trend of the voting may well have an effect on just where
and how much stale general fund
There would also be considerable difference of opinion on
the meaning of the "no" vote, if
There will be those who will
voting against the size of the budget but merely protesting the
fact that the Legislature had moved to eliminate the deduction of
federal income taxes on state returns. Many have termed this
a tax on a tax" and opposition
action.
This move, actually, will raise almost $50 million of the $64
million in increased revenue. Another $14 million comes from the
'speed-up" of state taxes withheld
in the stale have been protesting
employer with monthly rather than
So there will be those who would maintain that a no vote is
merely a protest vote against
There are others who would
protest vote against the increase in the budget and against the
size of state spending, in general.
A whopping "no" vote would tend to bear out this latter think
ing while a bare majority "no" vote would tend to bear out the
former theory.
The Governor and the Legislature would have to carefully con
sider just what the voters meant and what they wanted.
Governor Hatfield would have some course of action open to
him.
The Attorney General has ruled
......I . f .-J i-
scnooi support iiuiu. i inis can umy
He would nave to cnecx me
million' 10 see wutrie uuuKeia wuiu ue lui. ntav, uc uu,u vucvi.
and probably find that the Liquor Commission had recently increased
its revenue by $750,000. If the federal government reduces income
taxes, the state would stand to benefit by an increase in state income
taxes because taxpayers would
to deduct. -
However, it appears an impossibility for the Governor to make
even sizeable cuts in state budgets without some wholesale slashing
of programs.
What cuts he could make would De in nigner education, puonc
welfare and correctional and mental institutions plus minor cuts in
Henartmental budgets.
It would appear almost a certainty that the Governor would
summon the Legislature back into
tax bill is defeated.
The Legislature, then, could cut
Some of the areas that would
slashp. include the basic school
million. This fund jumped from $120.6 million to $1.15.1 million under
the last Legislature, an increase
This would be one of the tirst
school districts could he thrown the
lost funds by agreeing lo additional
expenses.
Some school districts, sucn as mosc in mis aica, nave an "pl
ating surplus at the end of the fiscal year which can range upward
from $40,000.
This would tend to reduce
basic school support funds at the
have to operate for a short time
next fiscal year.'
It is probable that cuts would be made in tne operating Duogei
tor instruction of the stale Svstem of Higher Education. In turn.
the state board would then have lo pare its student admission load
as well as raising tuitions and fees as necessity dictated.
Since, aeain. this is an area where some culs could be re
deemed by action of the agency involved, this would be one of the first
areas affected by any legislative cut.
Public Welfare would also come in for a sizeable slash. The
nresent budoet calls for an outlay
only $41.9 million of this comes from the general fund. The balance
comes from county and federal funds.
Each dollar slashed by the Legislature here, tnougn, would re
sult in about a $2.50 reduction in total revenues.
These would appear to he the
ernor or the Legislature would cut
sary by the people voting down the
Next Further speculation on
of a "no" vote on October 15.
Kennedy, Gromyko
Review 'Frictions'
WASHINGTON UPI - Presi
dent Kennedy meets today with
Soviet Foreign Minister Andrei
Gromyko for a review of East-
West "frictions designed to les
sen the danger of war by mis
calculation.
The session will be their first
since the dramatic confrontation
a year ago at which Gromyko
stoutly maintained that Soviet
weapons in Cuba were purely
"defensive, unaware that Ken
nedy already had photographic1
proof of the missile buildup.
The meeting was scheduled fori
4 D.m. EDT.
Secretary of State Dean Rusk
was holding a warmup session
with Gromyko earlier in the day-
Rusk and Gronuko held several
long talks earlier this month in
New York.
Kennedy told his news confer
ence Wednesday he believed that
"what has happened" aince his
Oct. 18. 13. meeting with Gro
myko "will lessen the danger of
a military clash."
Reports from the conference
said Butler had a slight edge
among possible successors to
Macmillan.
The next election must be held
within a year, and current spec
ulation is that it probably will
come in- May or June.
Governor making cuts in the state
budgets are cut.
the balloting turns out that way.
maintain that the public was not
has always been strong to this
from employes. Many employers
this since it would saddle the
the present quarterly returns.
these provisions.
maintain that a no vote was a
that he could not cut the basicvjc jrnruj t,.m nnH in
l- j u.. .u. T v
ue uune uy uie icftiaimuic.
oaiance 01 me general iuna Mmis(.ile fi,.jng competions today.
not have the larger federal taxes
special session in tne event me
where it desires.
very likely be singled out for
support fund which totals $135.1
ol about I5 minion.
areas cut ny tne Legislature since
responsibility of replacing these
property taxes or cutting scnooi
somewhat the effect ot a loss nl
state level. However, they might
on warrants, redeemable in the
of about $106.8 million. However,
major areas that either the Gov
in the event this becomes neces
tax proposal on October 15.
what might happen in the wake
'
He obviously had in mind the
forced withdrawal of the nuclear
missiles from Cuba, relaxation
of Red pressure on Berlin, and
signing of tlie limited nuclear
test ban treaty.
The President pointed out, how
ever, there still were many im
portant issues on which Russia
and the United States differed.
As we don't want these dis
putes and frictions to escalate
into military clashes, it is worth
while to have consultations," he
said.
The Rusk-Gromyko meetings a!
ready have shown that despite!
the more cordial East-nest cli
mate, tlicre is no foreseeable
prospect of a major break
through on such explosive issues
as Berlin, Germany and Euro
pean security.
Both aides, in fact, have shown
a willingness to slecr away from
the more flammable problems In
an effort to avoid a turn for the
worse In relations at this time
U.or ORCLIBRART COUP.
NSisfAPSR secrioN
OEN.Rer.AM DOCUHEWfS CIV.
Klcmtlh Polls, TultUht and Uktvitw
Vhbl cloudiness, cool and quit
windy with Hneds of stwwrtr tMiiht
and PrMsy. Lows tMiliht M to 41, hijh
Friday fo 5. Sooth to wuthwtM winds
Hiflh vwttrdty
Low thia morning 41
High ytar aw 44
Low ytar ago 32
Prtclp. last 14 hours .w
Sine Jan. 1 t.U
Sam period year aga li t;
tafam
MODEL FINISHED Mario Martin, planning assistant in
the Community Planning Office, is shown with his model
of downtown Klamath Falls, which was finished Wednes
day. The model, done to the scale of one inch equals 100
feet, Is designed to aid planners in their studies of the
city. The model was several months in preparation by
Locals Drop
In Firing
Competition
TYNDALL AFB, Fla. Kingsley
PioM'c finhtpr cniiaHl-nn nf Flrtt
..rwi "I
third place in the William Tell
as the worldwide contest among
interceptor fighter squadrons en
tered its fourth day.
Leading in the competitions!
which ends Oct. 114 is the IK. I
Sawyer Air Base, Michigan.
The Kingsley Field squadron
added 725 points to its total yes-
lerday in an intruder shoot, and
now is scheduled for two other!
events before it bows out of the
competition. An intruder shoot isj
an event jn which jet fighter pilots
in the air work with radar ground
crews to seek out flying electronic
targets called drones.
A Kingsley Field ingnt mission
has been rescheduled a second
time and is to go on tonight. The
squadron will conclude its part
in the competitions with a weap
ons loading contest sometime lat
er this week.
U.S. Chemist
Wins Nobel
Peace Prize
OSLO, Norway lUPD Ameri
can chemist Linus Pauling was
awarded the 1962 Nobel Peace
Prize and the 1!63 prize was di
vided between the International
Red Cross Committee and the Red
Cross League, the Norwegian No
bel Prize Committee announced
today.
It was the second Noiwi 1'rize
for the 62-year-old Pauling who
was born in Portland, Ore., on
Feb. 28, 1901. He won the 1954
Nobel Prize in chemistry.
The peace prize was worth $51,-
440 lo Pauling. The 1963 prize, to
be divided equally between the
two Red Cross bodies, was worth
$53,000.
The peace prizes and olficial
diplomas will be delivered lo the
winners at the traditional Nobel
ceremony at Oslo University Dec.
10, the day commemorating tne
death of Alfred Nobel.
The Nobel committee, as usual,
gave no reason (or lis decisions
today. The committee Is ap
pointed hy the Norwegian Nation
al Assembly, but operates entirely
independently.
Its meetings are always behind:
closed doors, and no names un
der consideration for the prize or
reasons for awards are ever
given.
Pauline peace prize is ine
12th to go In the United States.
while the Red Cross has twice be
fore received the award.
Pauling won the 1962 award to
day after the Nohel committee
decided last year that there was
no sizable recipient.
The 1961 Nobel Peace Prize
was awarded posinumnusiy to
United Nations Secretary Gen
eral Dag Hammarskjold, who!
wa killed In a plane crash while
on a peace mission to the Congo.!
r
Price Ten Cents 32 Pages
la
Mixed Reactions Greet
Wheat Deal
WASHINGTON (UPH - Presi-!
dent Kennedy's politically explos
ive approval of a "one shot" $250
million U. S. wheat sale lo Rus
sia won a measure of bipartisan
backing today in Congress.
But some Republicans, includ
ing House GOP Leader Charles
A. Halleck of Indiana, questioned
tne wisdom, of the move an
nounced by the President at his
news-eonferencfi1 Wednesday. Sen;
Barry M. Goldwater, R-Ariz.,,had
urged that the sale be made eon-
ditional on withdrawal of Soviet
troops and military equipment
from Cuba.
Kennedy said the sale of 4 mil
lion tons (about 150 million bush
els) of surplus U. S. wheat j
the largest Soviet-American trans-
action since the multi - billion - dol -
Top Republicans Gather
For Sessions In Eugene
EUGENE, Ore. (UPI) Na
tional Republican leaders began
assembling here today for the
four-day Western Republican con
ference which opens tonight with
an Oregon reception.
Attention will be focused on
Saturday's scheduled speeches by
New York Gov. Nelson Rockefel
ler and Arizona Sen. Barry Gold-
water.
The two, possible front runners
for the GOP presidential nomina
tion, will speak in the 10.000-seat
McArthur Court Basketball Pa
vilionRockefeller at noon, Gold
water at 7 p.m.
Oregon Gov. Mark Hatfield will
iv'" A c
l i . rt Cu , .u2 --.4
CHAMBER STARTS NEW YEAR Jim Stilwell, left, was
installed president ot the Klamath County Chamber ef
Commerce for 1963-64 during the chamber's annual ban
quet at the Reamet Country Club last night. Stilwell
succeeded outgoing president Jim Monteith, second from
riqht. Others are Stary Gangs, gueit speaker, end Mrs.
Jim Stilwell. Chamber officers are elected for one-year
terms beginning Oct, I.
KLAMATH FALLS, OREGON.
i
i
Martin, who carved each of the buildings from balsa
wood. The building sections are removable and tha modal
will be covered with a clear plastic shield. Completion
of the model Is one of the first stops in the office's study
of ways to improve downtown Klamath Falls.
With Reds
lar lend-lease deals of World War
II was a "hopeful sign" that
progress toward peace is possi
ble. He promised a special re
port to Congress on the matter
today
The President said the govern
ment would permit private U. S
traders to sell the surplus wheat1
"over th next several months
to Russja and her Eastern Euro-'
pean -satellites at regular world
priccs,-currently-,''about $1.79
bushel. This would be approxl-
Lately 55 cerfft a bushel. 1 o w r
than government - supported I
domestic prices at present.
To allow U. S. exporters to
buy at the American price and
sell at the world price, the gov
ernment currently pays an export
subsidy of about 55 cents a bush-
lel.
keynote the conference Friday
morning. Hatfield has been men
tioned as a vice presidential pos
sibility, and as a GOP presiden
tial dark horse.
Other governors slated to par
ticipate include Henry Bellmon of
Oklahoma, Robert Smylie of Ida
ho, Paul Fannin of Arizona, John
Love of Colorado, and Tim Bab
cock of Montana.
Among U.S. senators expected.
in addition to Goldwater. arc
John Tower of Texas, Len Jordan
of Idaho, Milward Simpson of
Wyoming, Gordon Allott of Colo
rado, and former Sen. William
Knowland of California.
THURSDAY, OCTOBER U. 13
Hospital Bid
Opening Set
For Oct. 24
The opening of bids for the
construction of the Presbyterian
intercommunity Hospital has1
been deferred from Oct. 17 to
p.m., Thursday, Oct. 24. the
office of the Intercommunity Hos
pital has reported.
The opening of bids will lake
place in the office of the hospital
313 Main Street, While bidders
win await results ot the pro -
ceedings in the banquet room ot
the Pelican Cafe, it was. said
in otner development, It was
announced that the dale for the
groundbreaking of the $2.7 mil
lion, 141-bed hospital had been
set or .Nov. 2.
The construction of the hospital
is being financed through dona-i
lions of Klamath Basin residents
except for some $1.3 million in
federal grants which have been
earmarked for the building fund.
The grants are in the amounts,
of $708,081 from tile Hill-Burton
funds and $625,000 from tha Ac
celerated Public Works Program
Miserable Haul
Upsets Thief
SAN FRANCISCO (UPI I -A
burglar took $29 worth of
phonograph records, coins and
a table radio from a San Fran
cisco flat Tuesday night and
left the following typewritten
note for his victim:
"In all my 30 years as an
honest, hardworking burglar,
seldom have I cam isici
across as miserable a haul as
this. You people ought to
leave some cigarets around
for guests. You ought to be
ashamed of yourselves. Medi
tate on this, friends: Every
thing which I leave behind
isn t even worth stealing.
"Til later, Sydney the bur
glar."
yiwwvwwwvsww1
Witty Americanism Talk
Chamber Program; Stilwell Installed
"A problem is an opportunity
going somewhere to happen,'
Stary Gange, platform speaker ex
traordinary, told an audience ofi
150 members of the chamber of
commerce and their guesls during
the 43rd annual chamber banquet
held last night at the Reamer
Count! y Club.
Gange urged his audience lo col
lectively work together to convert
such problems of Klamath Coun
ty into opportunities. In stressing
Ihe word "problems he alluded
to the various obstacles that face
any community seeking progress
and development.
A prominent alter dinner speak
er who has delivered more than
2.000 talks on Americanism since
1950, Gange injected wry witti
cisms from his personal experi
ences Into hit comments on infla
tion, taxes and the ideological
Telephone TU 41I1 No. 75M
Mk
Landslide Sends Water
Pouring Over Villages
LONGARONE, Italy (UPI) -i
More than 3.000 person were
feared today to have been swept
to their deaths when a massive
landslide poured a 300 foot-high
wall of water over a dam onto
the sleeping villages of an Alpine
valley.
Millions of tons of water spilled
over the lip of the dam Wednes
day night, poured into tlie valley,
wiped out villages, and caught
thousands in their beds. The ef
fect of the landslide into the res
ervoir behind the dam was like
that of a stone dropped into a
teacup.
The dam itself was not
collapsed by the rushing water
but a part of its crest on the
right side crumbled under the
shock of the wave. The concrete
structure, highest arch dam in
the world, held firm except fori
the minor damage along the top,
although officials first had be
lieved that it had collapsed and
hurled tlie water into the valley.
The disaster was triggered by
the landslide that plopped into
the reservoir behind the 860-foot
Vajont Dam at 10:43 p.m. (5:43
p.m. EDT) Wednesday.
The force of the landslide was
i great that it registered on
several Italian seismographs as
an "earth movement." Officials
believed that the shock registered
at the observatories was that of
the landslide itself, rather than
that of an earthquake setting off
the disaster.
Rescue officials estimated that
more than 3,000 persons died in1
half a dozen shattered villages.
With a tremendous roar, the
300-foot wall of water 6wept down
the ravine In front of the dam
and into the Plave Valley.
This town, which had 4,700 In
'
habitants, was the largest tnhab
ited area in the path of the flood.
Almost every . building in
the
town was destroyed.
There are more than' 3,0001
persons buried under some (hreel
square miles of stone, rocks, dirt
and gravel, said Lt. Col. Eros,
Orlore, the chief of rescue oper
ations. "There is no hope of sur
vival for any of them.
The few survivors we found
have been moved to Verona for
attention. We don't need medical
supplies because tlicre aren't
enough survivors to strain what
we already have, but we can use
all the bulldozers we can get our
hands on.
Working parties already had
uncovered scores of bodies, al
most all of them naked. Police
explained that tlie tremendous
force of the wator had ripped off
any clothes they had been wear
ing.
It was likely that many of
them already were in bed when
the disaster struck.
Piero Dalmin, a construction
worker from Longarone who
spent thn night away from home,
returned this morning to try to
find his sister, Maria.
"I can't even find our home,"
he said. "There is nothing left,
not even a landmark I yean rec
ognize." He said he doesn't know
what happened to his sister.
For miles downstream, bodies
were being found' buried in a
langle of mud, rocks and uproot
ed trees. At one point (here were
more than 100 dead cows.
To complicate matters, it ap-
peared the danger of deadly cy.
struggle between the U.S. and So
viet Union, He defined co-existence
as "what the farmer does
with a turkey before Thanksgiv
ing." The banquet program start
ed with an Invocation by Rev
R. H. Richardson, First Metho
dist Church, and proceeded with
the passing of the gavel from out
going president Jim Monteith
to his successor Jim Stilwell.
In accepting the gavel, Stilwell
told of a special chamber pro
gram titled "Seven by 70," a sev
en-point pattern for progress by
1970, which indicated that the
chamber was well on Ha way to
converting many community
"problems into opportunities.
Briefly, the seven-point program
involves the development of more
jobs and greater payrolls: ex
pansion and diversification of the
local agricultural economy; com
munity development; promotion
Weather
AGRICULTURAL FORICAST
UnttHlod wtathor condition wIN ava
soma ahowara with austy winds tha naxt
coupto af days with a return ta Mr
wtathor avar ttta waakaad. Harvest out
look fair to good.
anide had been added to the
tragedy of the flood.
The Italian Radio warned
people in the area to watch out
for the possible poisoning of the
water. It said that many con
tainers of potassium cyanide
were missing and they might
have been brbken open In the
flood.
Destruction,
Death Trail
Killer Storm
MIAMI (UPD - Hurricane
Flora, leaving a death toll that
may exceed 9.000 and damges of
nearly $500 million, churned rap
idly today toward eventual death
in the Atlantic Ocean.
Forecasters said the twister's
115 mile per hour peak winds
posed no threat to land but would
push gale winds and heavy 6urf
against the British resort island
of Bermuda today.
Headed on a northeast course -
at 25 m.p.h., Flora was located
at midnight EDT near latitude
27.0 north, longitude 67.0 west, or
400 miles south-southwest of Ber
muda.
"She's not dead yet," said a
Miami forecaster, "but I would
say maybe two days, then the
cold air will kill her. ,
Flora, one of the most devest
3JW
ing storms of the 20th century,
made her last strike at land
Wednesday morning, passing
over the island of Mayaguana in
the southeastern Bahamas. A Ha
ilian seaman was drowned when
bis dingy overturned.
Reports said 83 m.p.h. winds
wreaked some crop damage and
blew away a shop and dock, but
did no damage to the U. S. mis
sile tracking station on the island,
200 miles southeast of Nassau.
Hie killer Hurricane opened It
death-dealing foray by smashing
the tiny island of Tobago off the
northern coast of South America
early last week, but caused the
most damage in a swipe over
Haiti and Cuba.
Haitian Health Minister Girard
Phllippeaux has estimated 2,500
persons are dead or missing in
the storm's path and another
2,500 possibly killed. CARE inter
national relief agency estimated
$100 million in property loss.
OREGON
October 11
OPEN CLOSI
6:45 6:40
CALIFORNIA
October 11
OPEN CLOSI
6:41 6:3$
Highlights
of the tourist industry; Improving
highway, air and rail transporta
tion facilities and services; con
tinued participation in public Is
sues at the local, state and federal
levels; and to work together to
implement the program.
In commenting on the long
range project, Stilwell remarked,
"I believe in this area. I believe
in it because of our water power,
climate, Kingsley Field, the new
OTI campus, end our new hos
pital. These are merely several
of the reasons 1 believe we are on
our way, ha added.
ui the feature address, Gange
reflected on the world situation
and then directed his comments to
other areas.
"When people ask how can vou
he so cheerful when the world Is
In such a mess, I say that' not
i problem. 1 Just read history.
Tlie world has always been la
mess," he said.
Shooting Hours