Statesman Journal from Salem, Oregon • Page 1

Tax Cuts and Jobs Plan Top Gov. Straub 's Priority List By CHARLES E. BEGGS Statesman Capitol Reporter Bob Straub took over as Oregon's 31st governor Monday and asked the legislature to cut state income taxes and pass a six-point plan to create jobs. Straub took over the reigns of state government from Tom McCall, who ended eight years in office with a hope for Oregon to continue as "a lodestar for the wavering pace of American society." Straub asked in his inaugural address for an increase in the personal tax exemption from $675 to $1,000 and asked the lawmakers to take "emergency action" by Feb. 1 to create an estimated 8,700 new jobs.

He said the income tax cut would reduce taxes by $91 a year for a family of four making $10,000. His job plan would: Provide $20 million for interest free loans to build housing for low-income and elderly persons. Raise the maximum on state veterans' home loans from $28,500 to $35,000. Make a $1.7 million general fund loan to provide 500 jobs in forestry during the next five months. Provide for construction of needed improvements at the State Fairgrounds and at colleges and universities.

Beef up state highway maintenance and park projects to create 675 jobs. Create state stream-bank erosion control program, providing 1,100 short-term jobs, with the state paying $1.3 million as a 30 per cent share of total posts. The federal government, would pay half and local governments 20 per cent. Straub also proposed pay increases totaling 23 per cent for state employes over the next biennium, including a 5 per cent raise on Feb. 1.

There would be pay raises of another 10 per cent July 1, and 8 per cent on July 1, 1976. State employe unions have asked for raises totaling 40 per cent over the biennium and still are negotiating with officials on that and other details of a contract. Straub advocated that the state's appropriation for basic school support be increased about 25 per cent, which would make a slight increase in the present state aid which amounts to 28 per cent of total school costs. Straub said the legislature's most important task is providing "jobs for willing workers. "There is an economic chill across this land.

And there will be no warming trend this spring unless we are prepared to act now. "It's time to turn from flow charts, trend analyses and dreamy five-year plans for economic recovery," he said. (Additional details page 14.) mat The Weather Rain today, high 50, low 40. Complete report on poge 2.) Today's Chuckle After a particularly trying day with her little the young mother yelled; "All right, do whatever you please. Let's you disobey that!" 7 Days a Week POUNDED 15I Salem, Tuesday, January 14, 1975 No.

293 124th Year 15c 4 Sections 24 Pages tax action, levying $30 billion in taxes on domestic and foreign oil and natural gas, and returning this money to the economy through another series of tax rebates. But this second action basically involves taking money from one pocket and putting it in another, since Americans will be paying the $30 billion through an additional cents per gallon for gasoline and home heating oil, and higher rates for natural gas. Details on how the $30 billion would be refunded were not outlined by Ford but it was understood the plan included $80 cash rebates for low income persons pay no taxes at all, and lower withholding rates for other taxpayers in 1975. Ford's plan for cutting taxes for 1974 provides that every person who paid taxes for that year or who will pay them between now and April 15 will get a 12 per cent refund, up to a maximum of $1,000. The money would be refunded in special rebate checks, half sent in May and the other half by September, the President said.

Ford's plan would have to be approved by Congress, and the proposals of House Democrats appeared somewhat different, although they were not outlined in detail. (Additional details page 20; facts on tax rebate. Democrats' economic plan and analysis of Ford's policy page 23; record peace-time budget deficit proposed page 8.) WASHINGTON (AP) Americans seemed virtually assured of getting major tax relief this year as both President Ford and House Democrats Monday announced proposals for major anti-recession tax cuts. Ford urged a 12 per cent cut in income taxes for 1974 by making cash rebates of up to $1,000 for individual taxpayers. His total tax cut would amount to $16 billion, with $12 billion for individuals and $4 billion for corporations.

House Democrats, meanwhile, said they want to cut taxes between $10 billion and $20 billion for low and moderate income Americans. House Speaker Carl Albert predicted House approval for the plan within 60 days: Ford also announced a second -1 i News Digest 7 a -l 1 i Catholic To Rema School in Open Tragic Fires In an unprecedented string of fire deaths, six Salem residents have died in three fires in the last 20 days. Story page 5. Seeks Taxes nisi An put increased efforts into student recruiting and financial development." Prime Rate Cut NEW YORK (AP) Morgan Guaranty Trust Co. lowered its prime lending rate point to 9 per cent Monday, the first major bank since April 11, 1974 to set the key rate below 10 per cent.

31st Governor Gov. Bob Straub is sworn in as Oregon's 31st governor Monday by Oregon Supreme Court Justice Ralph Holman before a packed House chamber audience. House Speaker Philip Lang, D-Portland, is in rear. The ceremony marked the end of an eight-year career by outgoing Republican Gov. Tom McCall, and marks the first time this century that both the governorship and both houses of legislature are controlled by Democrats.

(Statesman photos by Ron Cooper) Hanoi Violates Agreement On Cease-Fire, U.S. Says Marion County Assessor Harold Domogalla wants Salem's new Pringle Creek parking structure put on the tax rolls. Story page 12. Strike Ends VANCOUVER, B.C. Workers at a British Columbia natural gas plant end a wildcat strike, ending the immediate threat of further export cutbacks to the Pacific Northwest.

Story page 11. Plane Selected WASHINGTON Pentagon selects General Dynamic YF-16 as the Air Force's new supersonic air combat fighter, potentially one of the biggest military aircraft programs in history. Story page 9. Commissioners Accept Marion County Commission accepts recommenda Jobless Rate Shows Decline ed States said North Vietnam "must accept the full consequences of its actions" in allegedly "turning from the path of negotiation to that of war." The release of the document, sent on Saturday to eight countries and United Nations Secretary General Kurt Waldheim, all guarantors of the Vietnam accords of 1973, the Ford Administration seemed to be seeking to bolster its argument that Congress should increase (C) Nw York Tim News Scrvic WASHINGTON The United States charged North Vietnam Monday with "flagrant violation" of the Vietnam cease-fire agreements and urged the Soviet Union, China and others to persuade the Hanoi government to resume political talks with the Saigon government that were broken off last year. In a toughly-worded diplomatic note released by the.

State Department, the Unit-' By ROBERT E. GANGWARE Statesman Business Editor State Employment Division officials found signs Monday of a slowdown in the rapid escalation of unemployment that Oregon has experienced the past two months. Nevertheless, there were 80,700 unemployed persons in the state's December count, and that was 20,300 more than were unemployed a year ago. Taking all factors into consideration the seasonally adjusted unemployment rate was calculated at 7.3 per cent, a shade better than the 7.5 per cent rate for November. The slight rate improvement came about because the jobless increase from November to December was less than usual for this season.

Employment leaders accounted for this by noting the winter weather so far has been "fairly good" and the lumber and wood products mill layoffs are "slackening" from the November pace. With a new quarter starting now and new federal relief programs just getting started, the payment of the unemployment insurance benefits financed by employers topped the $4 million mark for the first time last week. (Additional details page 11.) military and economic aid to South Vietnam so that it could better defend itself. State Department spokesman Robert Anderson was pressed by newsmen to explain the reference to Hanoi's accepting the "full consequences" of its actions. He said, however, that the administration would not violate the congressional law barring any combat activity in Indochina without congressional approval.

The Defense Department, meanwhile, said that the aircraft carrier USS Midway had departed from Japan Sunday night along with two destroyers and a guided missile frigate but would not say where it was headed. In recent months, military activity has increased in South Vietnam. North Vietnamese forces 10 days ago seized the South Vietnamese provincial capital of Phouc Binh, as well as the neighboring town of Song Be. tions on adoption oi a new contract for the county public health nurses on strike since Jan. 2.

Story poge 11. CIA Probe Starts i WASHINGTON Presidential commission investigating alleged domestic spying by the CIA held its first meeting; Secretary of Defense James Schlesin-ger, a former CIA director, testifies. Story page 1 1 Vote to Abolish WASHINGTON Democratic congressmen vote to abolish the House Internal Security Committee, which for 45 years has been the spearhead of anti-communist investigations on Capitol Hill. Story page 9. Queen of Peace Catholic Elementary School in South Salem will remain in operation through the 1975-76 school year, it was announced Monday.

The announcement came from Rev. Arthur P. Dern-bach, Portland, director of education for the Catholic archdiocese and executive director of the Archdiocesan Board of Education. Father Dernbach said the decision was made last week by the Archdiocesan Board of Education in consultation with Archbishop Cornelius Power. In early December the Queen of Peace Parish Council recommended that the 72-student school be closed at the end of this school year.

Reasons given were rising costs, decreasing enrollment and the dram on parish funds. The school operates grades one through six and is open to all faiths. "While recognizing the seriousness of the difficulties," said Father Dernbach's announcement, "the board, in consultation with Archbishop Power, saw fit to decide on the school's continuance. The parish was directed to GOP Asks Job Freeze Republican leaders of the Oregon Legislature have called for a freeze in state government hiring. In a joint statement, senate minority leader Victor Atiyeh of Bea-verton and house minority leader Roger Mainth of Lake Oswego said a freeze on hiring would save the state about $10 million over a six-month period.

They proposed that no state employes be laid off, but that jobs would remain unfilled when they are vacated. They said the freese should be kept in effect until the state's economic picture improves. Additional Rain On Forecast Periods of rain are forecast today by the National Weather Service. Chance of precipitation is 70 per cent. High temperatures are expected in the low 50s, lows near 40.

Monday .01 of an inch rain fell at Salem, high was 53, low 51. Cascade Mountain passes were clear and chains were not required late Monday. N.Salem PGE Site Gets Board Okay Garbage Collection Rate Hike Granted The change had been opposed by the Salem Planning Commission, which said the acreage inside the Salem urban growth boundary should be reserved for multi-family residential development. However, the commissioners approved the change after their advisers concluded that it would be in compliance with the Salem Comprehensive Plan. Good Morning! Today In The Statesman Portland General Electric Co.

was granted a requested zone change Monday by the Marion County Commissioners, just in time to save its option on a site north of Salem where it plans to build a regional center. PGE immediately exercised the option and purchased the 37-acre site on the northeast corner of Kale Avenue NE and Portland Road from Mrs. Marguerite Ramseyer Butler, Seattle, for an undisclosed amount. The option would have expired at midnight Monday. According to PGE Regional Manager Leo Chaffin, construction on the center will not begin until 1978.

He said the office is expected to open with 120 employes but eventually expand to 200 or 225. The change from residential-agricultural to commercial general zoning, was ap-proved by the commissioners 2-0, with Commissioner Harry Carson Jr. abstaining because his son is a PGE employe. Classes Offered -Escape from the winter blahs may be found in the wide variety of classes and special activities which will open this week and next for the Salem' Community Schools winter season. Held at neighborhood schools the events include weekly art and home craft classes, recreational-sports programs, health education and children's programs.

Schedules are on page 3 of today's Oregon Page Sec. Salem City Council unani-' mously approved an increase in garbage collection rates of approximately 20 per cent during its meeting Monday night at Civic Center. Basic residential rates will increase from $2.30 a month to $2.80 a month and similar increases will take place in extra service anu commercial rates. Betty Ford Checked WASHINGTON (AP) -First Lady Betty Ford underwent a four-hour check-up at Bethesda Naval Hospital on Monday and doctors said afterward "her health is The new rate schedule is virtually identical to one approved by Marion County Board of Commissioners for garbage pickups outside of city limits. The Oregon Sanitary Service Institute reported Salem will still have the lowest collection rate among major cities in Oregon, with the possible exception of Corval-lis where an increase is pending.

jjToday at the I Legislature II a.m. Senate convenes 11:30 House convenes Ann Landers Classified Comics, Features. Editorials Entertainment Market, Business Obituaries Panorama Public Notices SOS Sports TV-Rodio .13. .10. 4.

.11 24 .15. 13,14 .15. .10. 21, 23. .10.

Ill III II I II IV III III III II IV II Farewell, Tom Retiring Gov. Tom McCall bids farewell Monday as Bob Straub was swom in as his successor before a joint session of the Oregon Legislature. McCall made a short farewell speech urging the new leader to keep the state in forefront of notional progress..