The Burlington Free Press du lieu suivant : Burlington, Vermont • Page 1

H7h 9d pfl 5" West rttnijtim SOTS Greater Burlington Area Sunny and mild. See Details Below. Classified IS Obituariei I Comics 1( Sports 14 Editorials 12 Slocks II Landers 13 Women's 4 1 41 sf Yor Srvirf Vtrmenl 20 Only 10 No. 96 Saturday, April 20, 1961 ederal Reserve Chief Warns of Financial Crisis rrr 1.1 1 LA Ni 3 and both have to be corrected over the next several years, or the United States is going to face either an uncontrollable recession or an uncontrollable inflation," Martin said. He spoke one day after the Federal Reserve Board took strong money-tightening action by raising its discount rate from 5 per cent to 54 per cent, the highest interest rate on loans to commercial banks since 1929 when the discount hit 6 per cent.

The action is expected to push up interest rates and make WASHINGTON (AP) A warning that the coun-try is "in the midst of the worst financial crisis we have had since 1931" was issued by Chairman William McChesney Martin Jr. of the Federal Reserve Board Friday. Martin told the American Society of Newspaper Editors that unless huge deficits and inflation are curbed in the next several years, the dollar could be borne down "in a worldwide devaluation of currencies." In an hour-long address, Mar. tin called upon his audience of 550 editors to marshal public support for a tax increase and expenditure cuts. He said the nation is plagued by "an in.

tolerable talance of payments deficit, side by side with an intolerable domestic deficit." "Both have to be corrected, credit scarcer throughout the economy. It was taken on the same day that Chairman Arthur M. Okun of the President's Council of Economic Advisers said the country is suffering the consequences of a new and dangerous "over-all boom." More Pressure Martin's speech to the editors was interpreted as an attempt to increase pressure on Con-gress for the 10 per cent income tax surcharge requested by President Johnson. There was some belief, how. and spending reductions.

"I think it is the duty of ths Federal Reserve to point out the disastrous effects of the perpetual deficit, both in our balance of payments and in our domestic economy," Martin said. Devaluation In what may have been the first public admission by a high government official that a devaluation of the dollar is conceivable, Martin said: "Unless we reverse our current trend, it will inevitably lead to worldwide devaluation of currencies." ever, that the board's money-tightening action of Thursday might encourage some lawmak-ers to delay tax action longer. In an apparent effort to forestall such delay, Martin held out hope that if taxes are raised, the credit squeeze may be lessened and a repetition of the 1966 "credit crunch" avoided. Blame Martin divided blame between the administration's guns-and-butter policy and the "recal-citrance of Congress" in refusing to approve a tax increase Afterward he told reporters he was including the dollar in that statement but added that he was "not making a predictionwe still have it within our power to prevent this." He emphasized in his speech that his diagnosis of "the worst financial crisis we have had since 1931" did not mean a business crisis, but a financial crisis. The difference between 1931 and today, he said, is that the country was in a depression then and is in an inflation now.

Chairman Martin Tight Money Inevitable Inflation White House States Daley Favors Calling Off May Session Free Press Capitol Bureau RUTLAND Lt. Gov. John J. Daley said Friday he will ask Gov. Hoff to consider calling off plans for a special session of the legislature in May.

"Some consideration has got to be given to calling it off. I have traveled extensively around the state and Avis i I XT wrought on Saipan and other Is-' lands by Typhoon Jane earlier this month. To head the U.S. delegation at the United Nations International Conference on Human Rights, to be held next week in Tehran, Johnson named Roy Wilkins, executive director of the National Association for the Advancement of Colored People. David H.

Popper, deputy assistant secretary of state, will be alternate chairman. Other delegation members: Morris B. Abram of New York, Bruno V. Bitter of- Milwaukee, and John J. Grogan of Hoboken, N.J., president of the Marine and Shipbuilding Workers AUSTIN, (AP) The White House said Friday tighter money is inevitable because, in the absence of higher taxes, it is "our only present defense against inflation." Press secretary George Christians, asked for comment on the Federal Reserve Board's Thursday move to restrict credit by boosting the discount rate, said the action underscored an urgent need for congressional passage of a tax increase.

President Johnson has been pressing since early 1967 for a 10 per cent income tax surcharge but has failed to spur action on the measure by the House Ways and Means A bid for support of the nation's press was made in Washington by Chairman William McChesney Martin Jr. of the Federal Reserve Board, who said the country is "in the midst of the worst financial crisis we have had since 1931." Johnson was spending a work-and-rest day at his LBJ ranch, some 65 miles west of here. Mrs. Johnson joined him there from Washington Thursday night. They are expected to remain through the weekend.

Johnson declared the Trust Territories of the Pacific to be a major disaster area and allocated an initial $2.5 million of federal aid to help repair damage Hunted in King Slaying FBI Says Is Really Eric Gait' James Ray1 Emergency supervisory personnel in Toledo, Ohio, work to repair two underground cables, one carrying 1,800 pairs of wires, that were sawed apart after telephone employes went on strike. (UPI Telephbto) Telephone Strike 200,000 Of! Jobs, I haven't found any real support for a special session," Daley said. Daley said he hasn't talked about it yet with the governor, as Hoff is still in Honduras, but stated he plans to discuss the matter with Hoff as soon as he returns. Daley said the people of the state will tolerate a special session if it lasts for just one week. "But if it goes longer than a week we are in deep trouble," Daley said.

Daley said he had not been able to reach any agreement with the House Republican leadership on a plan to limit the session to the five bills which Hoff wants considered: He said any legislator can introduce bills during the first five weeks of a special session and noted Rep. Emory A. Hebard, R-28 of Glover, leader of the conservative House bloc, has threatened to bring in a pocketful of bills. Daley said there is a real danger the session would go throughout the summer and said the state simply cannot afford to finance it at $50,000 a week. Gov.

Hoff has called the state's space problems an emergency and has issued the call for a special session so the legislature can act on a bill to authorize a 19 million bond issue for a new stale office building. The bill had passed both the Senate and the House, but it could not be messaged back to the Senate from the House in the waning hours of the session, as conservatives garnered enough votes to block a rules suspension. Hoff has also said he plans to submit a bill calling for a constitutional convention and proposals for cost-sharing formula for state aid to schools, The Weather Bureau said Martin Talk Jolts Market NEW YORK (AP) A vul-nerable stock market was jolted to a severe loss Friday by the double impact of higher interest rates and a vividly worded warning from Chairman William McChesney Martin of the Federal Reserve Board. The market was vulnerable because it had risen for seven straight sessions and was due for a "coiVction," as analysts put it. Stock prices recoiled in an early gale of selling loosed by the surprise news of a boost in the Federal Reserve Board's discount rate to 5'a per cent from 5 per cent.

The ticker tape ran five minutes late as the Dow Jones industrial average fell 11.41 points in a half hour. By midsession, however, the Dow's loss was cut to 5.84. But prices began weakening again, and they really hit the skids on news that Martin had said the nation was "in the midst of the worst financial crisis we have had since 1931." Young Demos Oppose Secret Party Session Free Press Capitol Bureau MONTPELIER A group of young Democrats expressed strong opposition Friday to the move by State Democratic Chairman William Hunter to close to the public today's meeting of the executive committee. Rep. Brian Burns, D-l-7, of Burlington, president of the State Young Democratic Clubs, and Rep.

John Zampieri, D-52, of Ryegate, said they would stop by today's meeting to protest the closed doors. Zampieri said, "It looks like the Democrats are talking out of both sides of their mouths. They blast the Republicans for secret meetings and then they do the same thing." Burns said he had told Hunter Democratic meetings have always been open and should slay that way. "I think it is ill advised, especially at this time when there is a wide divergence in the party," said Burns. Burns said all the members of the executive committee are honest and honorable people and he knew there would be no hanky panky behind closed doors but he reiterated meetings should only be closed when personalities are discussed.

Housing Authority to function within its boundaries. Once such a resolution Is approved, the State Housing Authority can lease living units from private property owners and grant federal rent subsidies to the low-income people to whom they are rented. In the case of an owner whose property is deteriorated so as to be substandard, the Housing Authority can sign a lease which he can take to the bank as security for a loan. Once the property is repaired, the Housing Authority can make rent subsidy payments to the low-income tenants. The Housing Authority bill was passed by the 1968 Legislature to help combat the severe WASHINGTON (AP) The elusive Eric Starvo Gait, who is wanted for the killing of Dr.

Martin Luther King was identified by the FBI Friday as a 40-year-old drifter and ex-convict named James Earl Ray. The FBI said Gait's real identity was traced through "a systematic and exhaustive search of latent fingerprints" developed in the King case against the fingerprints of more than 53,000 persons for whom wanted notices are on file in the bureau's identification division. Gait is only one of the names Ray has used in brushes with the law which began, according to the FBI dossier, when he was 21. The FBI said he has used the names of James McBride, James Walton, W. O.

Herron and James O'Connor. He was described as about 5 feet 10, weighing 163 to 174 pounds, with blue eyes and brown hair and two scars: a small scar in the center of the forehead and another on the palm of his right At the time King was shot and killed by a sniper in Memphis, April 4, Ray was being sought on a jail breaking charge. The FBI said he escaped on April 23, 1967, from the Missouri State Penitentiary at Jefferson City, where he was serving a 20-year sentence for armed robbery in St. Louis. Ray, who is now being sought on a Tennessee murder charge in the King slaying, has an arrest record dating at least to 1949 when he served time in Los Angeles on a burglary charge.

This followed his discharge from the Army. The FBI said he served as an enlisted man from February 1946 to December 1948 when he received a general discharge for ineptness and lack of adaptability. PI I KeDonea gan Thursday. It is the first nationwide telephone strike in 21 years. The strikers include about 140,000 operators, repairmen, linemen, clerks and other Bell System employes whose contracts have expired in 16 states and the District of Columbia, and 23,000 Western Electric Co.

telephone installers who work in most areas of the nation. Beirne asked all other telephone workers to observe picket lines. An spokesman said employes crossing picket lines to work ranged from 10 per cent in some states up to 60 per cent in other areas. i Lt. Gov.

Daley citizens, a veterans bonus bill and a minimum wage bill. A bill providing a $120 bonus to each Vietnam veteran was passed by the recent legislature, but Hoff vetoed it because of the financing. The minimum wage bill, which would have guaranteed minimum wages to employes of contractors working on jobs involving public funds, passed both the House and Senate, but the conservative House block refused to suspend the House rules the final day to take up a committee of conference report. Daley, who is the only Democratic candidate for governor, said he believes some of the legislation was extremely important. However, he said he felt the risk of a special session which might run for weeks might outweigh in disadvantages the advantages gained from passage of the legislation.

U.S. Planes Hammer Cong SAIGON (AP) U.S. fighter-bombers, in the year's biggest raid on the North, have hammered its southern panhandle in an effort to slow the flow of men and supplies to South Vietnam, the American command said Friday. After 145 missions Thursday, the command said first checks showed the planes destroyed or damaged 14 bridges, 13 trucks and 16 supply ships, cut bridges and roads in many places and touched off explosions and fires that indicated fuel and ammunition dumps were hit. I Calling the Free Press today? i if you wont Wont Ad to ploc or mak subscription change, phone before noon today Advertising ond Circu- i.

lotion offices or open I' todov from 8:30 till noon. a.m. 1 James Earl Ray His Army record showed a three month sentence at hard labor for being drunk and breaking arrest, the FBI said. The bureau's dossier on Ray indicates he has been a drifter since he left school in the 10th grade at Alton, 111. In 1952, according to the FBI, he was convicted in Chicago for armed robberty and served two years in Joliet and Pontiac, 111.

state prisons. First Time Since 1909 Overland To North Pole WASHINGTON (AP) The striking AFL-CIO Communications Workers said nearly 200,000 telephone workers were off the job Friday, but company officials reported nationwide' and overseas phone service near normal. The American Telephone Telegraph Co. reported some cables shot or cut in four states, and union President Joseph A. Beirne said the union does not condone sabotage.

Ohio Bell Telephone Co. said it asked the FBI to investigate a cable cutting that disrupted phone service to a Federal Aviation Agency center near Oberlin. The company reported other cable cuttings in New Jersey, Indiana and Florida. Beirne said 90 per cent of those called out on strike or asked to refuse to cross pic'icet lines in some 40 states had joined the walkout in support of wage demands. The strike be- shortage of living units for low-income people and senior citizens.

Another section of the act, to take effect later this year, would allow the creation of nonprofit corporations to build mul-ti-unit dwellings in any community of under 5,500 persons under Farmers Home A ministration 100 per cent funds. As soon as the units were completed, they, too, could be leased by the Slate Housing Authority and 1 i tenants would be eligible for rent subsidies. Such units could provide living quarters in the smaller towns for groups of senior citizens or groups of low-income people. oaDOTaQ WASHINGTON (AP) 700 Public Housing Units OK'd for State Authority Reds Call U.S. Talk Efforts 'Peace Swindle' TOKYO (AP) A North Vietnamese Foreign Ministry spokesman charged Friday that Washington is engaged in a "peace swindle" and practically wrote off 10 new U.S.-suggested sites for preliminary talks.

Secretary of State Dean Rusk Thursday suggested Afghanistan, Austria, Belgium. Ceylon, Finland, Italy, Japan, Malaysia, Nepal or Pakistan and called on Hanoi for "a serious and responsible answer." "Within thre weeks only, the United States, which at first did not set any conditions with regard to the choice of a site for talks, has come to pile up extremely jbsurd and Insolent conditions," Hanoi radio quoted the spokesman as saying. SUNNY AREA WEATHER Sunny and mild Saturday, high in the mid to upper, 60s. Fair, not so cool Saturday night, low in the 40s. Outlook for Sunday variable cloudiness with little change in temperature.

Probability of rain near zero per cent Saturday and 10 per cent Saturday night. Todoy's Data S.pnrl, iiml, 4J. HIjhMt morolur Min dol loit yor, it; lownl. IS. Rtcord high this dolt, 14 in ot.

Record low. 14 In 1177. Normal hi oh Ihit dot iS. low 1. TMr ho lomt prtcloltotlon Oh Aofll IS ptr ctnl of tho yton line 190.

Yesterday'! Data Yoitarday'i OvtlMk: Cltudy nd worm. Actual Dalai Hlghoit tfayllm torn-ptratura. it at 3:30 k)wt for 24 nnurt ending at 11 to at 4 m. Dtgrt day unlH, TtiurMoy 70; accumulation Unca July 1, 7l. Lok trrnrolir, 41.

Daytkno cleudinm 18 Ot doy; unMne, IS pr cnt of tn; lotol nrtcisHaiinn (or J4 hur, vh; total pricipltotlon for month ott, J4 Inchtl. Friday a six-man American-Canadian expedition became early Friday morning the first party to reach the North Pole by surface travel since the 1909 Peary expedition. A bureau spokesman said the news came from the agency's Arctic weather station at Ellesmere Island in Canada's northwest territories which has been keeping radio tabs on the adventurers. The expedition, headed by Ralph Plalstcd, a St. Paul, insurance man, made an unsuccessful attempt to reach the pole last year, turning back 530 miles short of the goal because of rapidly melting ice and other factors.

The explorer team has been traveling in gasoline powered vehicles that haul sleds. The bureau said it had received this message from the Ellesmere Island station at Eureka, which is jointly operated by the United States and Canada. "U.S. Air Force fly-over verified at 0635 Zulu 1:35 a.m. EST that Plaisted expedition had attained North Pole." Free Press Capitol Bureau MONTPELIER The Vermont State Housing Authority received preliminary approval here Friday from the federal government for 100 public housing units.

James H. Finneran, director of the office of local affairs, received the preliminary approval from the Housing and Urban Development regional headquarters in New York City. He said final approval will hinge on additional figures which it is now compiling in Vermont. Finneran said communities who want to take advantage of the act must have resolutions approved by the selectmen or city councils to allow the State.