The Burlington Free Press from Burlington, Vermont • Page 1

4 Today's Weather Greater Burlington Area Cloudy and cold See Details Below Today Everyone Is Reading. Classified 27 Obituaries 6 Comics 27 Sports 20 Editorials 18 Stocks 26 Landers 19 Women's 9 141st Year Serving Vermont 32 Pages, Only 10c VtAMO. Ok (kcuttifrti Lakt CkoMpiatK No. 9 Friday, Jan. 10, 1969 i A mm I i Iff II 1 1 II I if 7 I Free Press Capitol Bureau MONTPELIER Gov.

Deane C. Davis called on the Legislature Thursday to enact a 4 per cent general sales tax to be tied to the personal income tax so annual rebates on food purchases could be made to families with incomes of less than $10,000 annually. Davis placed the emphasis on finances in his combined inauguration and budget message presented to the General Assembly after he was administered the oath of office by Chief Justice James S. Holden. The Governor also asked for a small increase in the tax on liquor and cigarettes (sin tax) to be earmarked specifically for paying off the $5 million to $6 million deficit expected at the end of the biennium, June 30 and asked that the additional sin taxes be dropped once the devicit is paid off.

Davis also asked the Legislature to raise the corporate income tax from 5 per cent to 6 per cent, proposed a revision of the taxation of equipment and machinery and the replacement of the inventory tax with a levy of three mills (three-tenths of one per cent) on the difference between sales and purchases. He also asked the General Assembly to pass a senior citizens tax relief bill which would cost the state about $1 million annually, and he proposed passage of a preferential land tax law for farmers, like the one in Connecticut. Davis presented a "hold-the-line" one year general fund budget of $95.1 million for the 1970 fiscal year and called for a one-year analysis and reappraisal of all state programs. "Our first and overriding necessity is to put our financial house in order," he said. Davis said the commitments of state government have been growing faster than the pace of the state's economic growth.

He said the costs of programs to which the state is commited are sky-rocketing beyond the most optimistic revenue projections. In proposing the general sales tax, Davis said, "I believe the people of Vermont want to put their house in order and that they will approve of our actions taken for that purpose." Davis proposed a 4 per cent sales tax which would include food, clothing and all other purchases exempting only feed and fertilizer for farmers and farm machinery. He said the regressive tendencies of a sales tax could be avoided by tying it to personal income tax. Under Davis' proposal annual refunds of $20 per person would be made in the family of each lowincome taxpayer who pays no federal income tax. The refunds would be paid on a sliding scale down to nothing for the family with federal income tax liabilities of $1,400 or more.

Davis said the refund would be handled as a credit against a person's state income tax and in the case of poor people who pay no income tax. the refunds would be paid in cash. He said an advantage of the refund system is the fact that tourists would receive no rebate on their purchases since they pay no income taxes in the state and would thus be paying a fairer share of the tax burden than they are now-paying. Davis estimated the annual yield of a 4 per cent general sales tax at $25 million, but said the net yield to the state would be $17.7 million after the $3.95 million estimated as the cost of the refund and the deduction of the $3.7 million now received in rooms and meals tax revenues, and the $500,000 costs of administering the tax. He said the proposed sales tax would provide the bulk of the revenue needed to balance the state budget and said the one cent increase proposed in the corporate income tax would bring in another $1 million.

Davis said all the states around Vermont have a sales tax with the exception of New Hampshire. He suggested to discourage border hopping Vermont could also back up the sales tax with a use tax which would require any resident to report and pay tax on purchases in New Hampshire which were untaxed. Davis said he will not make a definite proposal on the amounts which the liquor and cigarette taxes must be raised until about April 1. But he made it plain there must be some increases in these taxes earmarked for paying off the projected deficit for the present biennium and to be abolished by the Legislature when the deficit is paid off. (Continued on Page 14) I jl I REPUBLICAN Gov.

Deane Davis is sworn in as Vermont's chief executive by Chief Justice James S. Holden, right. Family Watches as Davis IlIHIIttM! Takes mmiff nit HUiiiititutttm ntttiiiii i Oath as overnor rr fjtcrrt -r fx r- ti After he was inaugurated Gov. Davis administered the oath of office to the other four constitutional officers Atty. Gen.

James M. Jeffords of Shrewsbury; Secretary of State Richard C. Thomas of Montpelier; Auditor of Accounts Robert T. King of Underhill; and State Treasurer Frank H. Davis of Burlington.

A 19-gun salute fired by the Vermont National Guard signaled the inauguration of Davis. Davis won the governor's office by a 17,700 vote margin over his Democratic opponent, former Lt. Gov. John J. Daley of Rutland.

And Hayes won over his Democratic contender, William A. Hunter of Burlington by a 24.000 plurality. The inauguration ceremony started on a light note when the clerk of the House handed Davis paid tribute to outgoing Gov. Hoff for what he called Hoff's "dedicated and exciting service," and he thanked Hoff for his cooperation and help in making the transition from one administration to another. The 50-minute inaugural message which Davis gave was not interrupted by applause as had the inaugural messages delivered by Hoff in the past few years mainly because Davis proposed a sales tax.

The strongest reaction to Davis' proposal came from Rep. Robert Kearns, a Bennington Democrat and brother to outgoing Administration Commissioner William F. Kearns, who walked out of the House when Davis proposed the sales tax. But the applause at the end of the Davis address was heavy, and Republicans responded well to the sales tax proposal. outgoing Democratic Secretary of State Harry H.

Cooley the wrong resolution to read. Cooley discovered his mistake after he had read a few words and there was laughter throughout the house. The resolution was soon found, and after its reading a committee of legislators was appointed to escort Davis from the executive office to the House chamber. The committee was made up of Sen. Richard W.

Mallary, R-Orange; Sen. Donald Smith, R-Washington; Rep. Herman Hoyt, R-10-2, of St. Johnsbury; Rep. Mildred Hayden, R-21 of Berlin and Rep.

John Zampieri, D-52, of Ryegate. Mrs. Sidney F. Greeley Jr. of Framingham, daughter of Mrs.

Davis, sang a soprano solo "America the Beautiful" before Davis delivered his combined inaugural-budget address. r915 r'jr' 1 4 5 1 5 f'tWU Free Press Capitol Bureau MONTPELIER Deane Chandler Davis a retired insurance executive who grew up in a poor family of eight children and conquered an attack of polio which left him with a slight limp became Vermont's governor Thursday. Gov. Davis' wife, Marjorie, and his son, his daughter, six of his ten grandchildren, three sisters and a brother sat in the well of the Vermont House as the oath of office was administered to him by Chief Justice James S. Holden.

Also sitting in front of Davis was outgoing Gov. Philip Henderson Hoff. the first Democrat to hold the top executive office in more than 100 years, and Mrs. Hoff and their daughter. Gretchen.

The House Chamber was filled to capacity for the ceremony which retar ed a Republican governor to the state helm after six years of the Hoff administration. Among the dignitaries who attended were former Gov. Lee E. Emerson of Barton, and Mrs. Emerson; Former Gov.

Joseph B. Johnson, and Mrs. Johnson, of Springfield; former Gov. F. Ray Keyser and Mrs.

Keyser of Proctor, and former Gov. Harold Arthur and Mrs. Arthur, of Burlington. Lt. Gov.

Thomas L. Hayes, the man who was defeated two years ago in the Republican gubernatorial primary election, presided at the joint session of the Legislature. The crowd cheers as Gov. and Mrs. Deane C.

Davis are escorted through the honor guard of Mt. Sinai Temple No. 3 Shrine at the Governor's Ball Thursday night in Montpelier City Hall. More Capital Activities Pages 4,5,7, 14,15 Tears Shed as Hoff Says Farewell t-fh challenge to mobilize our total resources for the benefit of all our citizens." There were no interruptions for applause. Tears did flow, quietly, especially among those who had worked with Hoff.

One capitol reporter turned away crying for an era, and more importantly, the journalist later added, for a man. Hoff analyzed his "bold departure from the past," a program begun six years ago and now ended. "No longer are Vermonters content to accept second best for themselves or for their children. No longer does Vermont see itself apart from the nation. Neither do we separate our aspirations as Vermonters from our aspirations as Americans.

"Working together, we have moved our state forward making significant progress in every area of social concern, political reform and economic development." And then he touched on the problems left behind: "The rewarding rise in personal income during the past few years gives us all new hope. But it is less significant to us as we view our public responsibilities than the specter of the man who still has not broken the cycle of poverty. "We cannot be content to march on the treadmill of the status quo. To do so would be to lose ground already lost." One answer, Hoff continued, is more regionalization. And, as for youth, with its "message of alienation." "Their message does not differ greatly from the idealism of other generations of young people.

It has been intensified, however, by our new affluence, by the faceless threat of nuclear war, and the computer complexion of so many lives. "Vermont stands out in the vale of violence as a green even snow covered oasis. The warmth of its people, the beauty of its landscape, its traditional concern for human rights, make it unique." The problems are many, but new solutions are now up to a Republican Free Press Capitol Bureau By BOB BABCOCK JR. MONTPELIER It was his last day, his last act. And to those that loved him, there were tears.

For those who didn't, there was respect. Philip Henderson Hoff was escorted as governor for the last time. His three-terms as a Democratic chief executive were to conclude in 17 minutes a lifetime to many, too short for others. With his wife. Joan, and one of his four daughters, Gretchen, standing with the 180 legislators, the justices of the Supreme Court, the new and old administrations, four former governors, and a packed ensemble of interested friends, Hoff said "Six years ago, this Assembly and the people of Vermont joined me in a challenge to control change and not merely to react to it in a challenge to shape our future and not merely to endure it in a challenge to preserve the best of our rich heritage and not to squander it and finally, in a Administration 5,000 new classrooms by 1975, major highway construction, 600 new hospital beds by 1975, 13,000 new homes by 1975 -Hoff added.

"State government has responded to the quickened tempo of change. Our efforts must be intensified if we are to keep pace. This must be done despite cries that our stride has been too great, our pace too brisk, our step too bold." Seventeen minutes later it was all history. The sustained applause for love, respect, or good riddance was genuine. Walking into his office, bedecked with the pictures of governors of the past, the retiring chief executive was alone with his tears, which were also genuine.

Joan and Gretchen joined him briefly together at last, free for a moment from public scrutiny and rumors. The stream of well-wishes gathered. Democrats many, but an equally strong contingent of Republicans, walked through to say good-bye thank him. Free Press Photo by Mavis Doyle GOV. HOFF waves to members of the CLOUDY AND COLD General Assembly as he leaves the House chamber for the last time as governor of Vermont.

He had just delivered his outgoing address. i AREA WEATHER Considerable cloudiness and cold Friday and Friday night, with scattered snow flurries; high Friday in the teens, low Friday night 0 to 5 above. Outlook for Saturday, fair and cold. Probability of snow 40 per cent Friday. 30 per cent Friday night.

This forecast was issued at 8 p.m. Thursday. w. JUL 3-4 ,4 Firsf on ihe Moon? We Can't which David disastrous Gemini 8 flight in 1966 he flew with Air Force Lt. Col.

Whottvr th Wohr WOODBURY LUMBER Prc An towr I King Street at th Lake ITo prove to you how fast-acting Free Press Want Ads really are. I took around you see if you have any thing in your attic or basement you no longer need or use? I Place a Free Press Want Ad when the WASHINGTON (APi The Space Agency Thursday named astronauts Neil A. Armstrong, Michael Collins and Edwin A. Aldrin to the Apollo 11 crew the American team that will have the first chance of landing on the moon. Armstrong, a civilian was named Apollo 11 commander.

Collins, an Air Force lieutenant colonel, was named command pilot and Aldrin, an Air Force colonel, was selected lunar module pilot. If they make the historic moon landing trip, Armstrong and Aldrin would drop to the lunar surface in the lunar module while Collins circled the moon. Armstrong commanded the nearly Scott. Collins took a space walk on the Gemini 11 flight in 1966, and originally was assigned to the Apollo 8 moon orbit mission. But a spinal operation knocked him off that assignment last summer, and he was replaced by Navy Capt.

James A. LovellJr. Aldrin took a space walk on Gemini 12. Named backups for the Apollo 11 mission were two men who flew on Apollo 8, Lovell and Air Force Lt. Col.

William A. Anders. Named with them was civilian Fred W. Haise. a newcomer.

1 Today's Data Sunrise, sunset. 4:33. Highest temperature this date last year, -4, lowest, 22, Record high this date, 49 in 1939. Record low, -22 in 1968. Normal high this date 26, low 7.

There has been some precipitation on Jan. 10 in 34 per cent ot the years since 1906. Yesterday's Data Yesterday's Outlook: Cloudy, chance of snow. Actual Dt: Highest daytime temperature, 22 at 7 p.m.; lowest for 24 hours ending at 8 p.m., -8 at 4: 15 a.m. Degree day units, 51; accumulation since July 1, 3,584.

Daytime cloudiness 1010 of day, sunshine, 0 per cent of day; total precipitation for 24 hours ending at 8 trace, total precipitation for month to date, inches fit -jfi H4w J) phone starts ringing and the cash comes in you'll have proof, too, and be pleased. Dial 863-3441 Today! Aldrin Collins Armstrong 1.