The Times Herald from Port Huron, Michigan • Page 2

Budget chief says recession on fears overdrawn Gannett News Service Special WASHINGTON The energy shorwill not have the seriously adverse effect on the economy that some economic and business leaders are predicting, Roy L. Ash, director of the Office of Management and Budget, said Wednesday. Ash disputed those who in recent days have said that the budget will be far out of balance and that the country faces the threat of serious recession as a result of the energy shortage. Now putting the final touches on the 1975 fiscal year budget which President Nixon will send to Congress Jan. 28, according to present plans, Ash is having a series of meetings with government economists to pinpoint the effects of the energy crisis on ecoomic policy.

Ash predicted in an interview that -real economic growth in 1974 will be in the neighborhood of 2 per cent, down from last year's inflated rate of close to 6 per cent but not down to a recession level. 2A THE TIMES HERALD PORT HURON, He also said that unemployment, while going higher because of the energy crunch, will be in the area of 5.5 per cent compared to 4.7 per cent present. It reached a low point of 4.5 per cent last fall. Ash also disputed the forecast of of a 1975 fiscal year budget deficit of $14 billion to $20 billion made last month by the congressional Joint Economic Committee staff. He said the deficit would be in the $6 billion to $8 billion range instead.

President Nixon said last year he hoped the 1975 budget would be balanced. Now there is no hope that either the 1974 or 1975 budgets will be balanced. For fiscal 1974, which ends June 30, Ash now projects a deficit in the $3 billion to $5 billion range, and he blames it on Congress. In the last session, he said Congress boosted 1974 spending by about $4 billion over the president's Obituaries ries John W. Babcock Edwin L.

Knight NEW BALTIMORE John W. Babcock, 71, of 50782 Lenox Street, died Wednesday in Mt. Clemens General Hospital after a short illness. Babcock was born Oct. 17, 1902, in Dresden, Ont.

He retired in 1949 as a bus driver with the Detroit Street Railways (DSR). His wife, Rheta, died Nov. 9, 1963. He is survived by a daughter, Mrs. Helen Wright, new Baltimore, a sister, Mrs.

Vera Tales, Chatham, and two grandchildren. The remains are in Gendernalik Funeral Home where servicee will be conducted at 11 a.m. Saturday. Rev, Roger M. Marlow, pastor of St.

John Lutheran Church, will officiate. burial will be in Glen Eden Cemetery, Livonia, Mich. Mrs. Leslie Hildinger MARLETTE-Mrs. Edna Hildinger, 77, Beulah, and formerly of Marlette, died Monday at a Traverse City Hospital after a brief illness.

Mrs. Hildinger was born Aug. 5, 1896, in Snover. She lived in Sanilac County most of her live, moving to Beulah 12 years ago. She was married to Leslie Hildinger in Snover on April 18, 1918.

The couple lived on a farm near Snover before moving to Marlette in 1943. She is survived by her husband; two daughters, Mrs. Robert (Veta) Howard, Marlette, and Mrs. Charles (Donna) Ballard, Beulah, and four grandchildren. Funeral services will be held at 1:30 p.m.

Friday at the Marsh Funeral Chapel, Marlette. The Rev. Robert Kyser, Utica, and formerly pastor of the Marlette First Presbyterian Church, will officiate. Burial will be in Moore Township Cemetery. Frank Kania CAPAC-Frank Kania, 77, of 540 Glassford Street, died Wednesday in Yale Community Hospital after a long illness.

Kania was born Jan. 20, 1896, in Poland. He lived in Capac since 1940. He came to the U.S. in 1913.

Before retirement he was employed by the Packard Motor and CurtisWright Company, afterward farming in the Capac area for 30 years. Kania married the former Anelina Skomorowska Feb. 4, 1933, in Detroit. He is survived by his widow; two stepsons, Watson Lapinski, Capac, and Joseph Lapinski, Dearborn; 10 grandchildren; two brothers, Peter and John Kania, both of Poland, and a sister, Miss Mary Kania, Poland. Funeral services will be held at 10:30 a.m.

Saturday in Barnard Funeral Home and at 11 a.m. in St. Nicholas Catholic Church. Rev. Leonard P.

Wallace, pastor, will officiate. Burial will be in West Berlin Cemetery. A Rosary will be recited at 8 p.m. Friday in the funeral home. Weather SOUTHEAST LOWER MICHIGAN Partly cloudy tonight and Friday.

Lows tonight near 10. Highs Friday in the mid 20s. Winds north to northeast 10 to 15 miles an hour today and light and variable tonight and Friday. EXTENDED OUTLOOK, lower peninsula (Saturday through Monday) Partly cloudy and cold Saturday with lows of zero to 10 above and highs in the upper teens to lower 20s. A little warmer with occasional snow likely late Sunday or Monday.

Lows 10 to 20 above and highs in the mid 20s to lower 30s. Yesterday Today 1 p.m. .16 I a.m. ....16 5 p.m. 16 5 a.m.

18 9 p.m. .16 9 a.m. ...19 Midnight -16 Noon .23 Around the state High Low Pr Alpena, snow 14 10 Detroit, cidy 15 14 .06 Flint, pt cidy 15 15 .02 Grand Rapids, cidy 17 16 .04 Houghton, snow 0 .06 Houghton Lk, snow 12 10 Jackson, cidy 13 .04 Lansing, cidy 17 10 .04 Marquette, clear Muskegon, cidy 14 Port Huron, pt cidy 16 Pellston, snow 15 12 .11 S. Ste. Marie, clear 7-11 Saginaw, 17 15 .01 Traverse City, snow 12 11 .11 DEGREE DAYS Listed in the following chart are the total degree days for the month up to Wednesday, the cumulative heating degree days for this winter since Oct.

1, and the monthly averages from October through March for the previous heating year. 1974 1973 January ...102 80 Heating Year To Date (From Oct. 1) ....2,392 3,315 Averages by month, 1972-73: 213; 788; 977; March, 667. MICH. Thursday, January 3, 1974 projections and 1975 spending by nearly $8 billion.

The spending estimate for fiscal 1975, which begins July 1, will be $300 billion or more, Ash acknowledges. When he first told the President last month that the $300 billion ceiling would be pierced for the first time, the President did not ask him to try to keep it below $300 billion for "optical reasons," Ash said. Rather, the President said: "Don't worry about what it looks like; worry about what it is." While predicting spending in the $300 billion plus range, the President's new budget will estimate income in the $292 billion to $294 billion range, according to present plans. Final decisions on the budget must be made by Tuesday, Ash said. Noting that "energy is the key swing factor" in all economic and budget forecasting, Ash said he would have a series of meetings this week with government officials for a final review of the energy impact.

He also will have a meeting of the economic troika, consisting of himself and Treasury Secretary George P. Shultz and Herbert Stein, chairman of the Council of Economic Advisers, before sending the budget to the printers. The President is not expected to be in Washington for the troika meeting, but, Ash said he keeps in close touch with the President on budget planning and that Nixon is making daily decisions they put up to him. Ash's estimate of tax collections of IRS will scan Nixon tax data WASHINGTON (AP) The Internal Revenue, Service says it will conduct a new audit of President Nixon's recent income tax returns to determine whether he owes more taxes. IRS sources said the audit would include the President's tax returns for 1970, when he paid $793 in taxes and 1971, when he paid $878, but could extend to other years as well.

The audit of the President's 1970 and 1971 returns will be the second by the IRS, a spokesman said, but he declined to comment on whether any new information had become available to cause the new probe. He said nothing was found amiss in that audit. He did say there is nothing to prevent the IRS from checking into presidential deductions it previously had cleared. There has been considerable con- People BEFORE AFTER Washington Governor Dan Evans says his children won't be justified calling him "Mr. Grubface" any longer.

The Governor grew a beard last summer but, in a recent onehour bout with a razor, took it all off. New Detroit Mayor warns criminals DETROIT (AP) Coleman A. Young, Detroit's first black mayor, zeroed in on the city's No. 1 problem-crime-at his inauguration ceremony Wednesday. Young received a standing ovation from a near-capacity crowd at Ford auditorium when he warned all "dopepushers and rip-off artists" that it was "time to leave Detroit." "I don't care if they're black or white, if they wear Superfly suits or blue uniforms with silver badges -hit the road," said the fiery, 55-year-old leader.

Young was sworn in by by State Supreme Court Judge John Swainson, a former Michigan governor, and U.S. District Judge Damon Keith. Young said the city had been polarized too long and emphasized that common poblems were a stronger force than racial social or economic differences. "What's good for the whites is good for the blacks, What's good for the rich is good the poor. What's good for the suburbs is good for the central city," said Young.

The former Michigan senator said cooperation would be the key to his success and the city's regeneration. He acknowledged the proffered support of the common council with the admission that "I'll need all the help I can get." Young hinted at a shakeup of the police department, saying that he intended to build a people force. "Police must have the respect and cooperation of citizens -but they must earn it by extending that same courtesy and respect to the people," said Young. $292 billion or more in fiscal 1975 would be badly off if a recession develops or if Congress refuses to enact the windfall excess profits tax on the oil industry the President has proposed. The congressional Joint Economic Committee staff said in a report last month that spending in fiscal 1975 could reach $302 billion while income would be only $282 billion, leaving a deficit of $20 billion.

Using somewhat different assumptions, the staff said the deficit could be in the $14 billion range. MELVIN-Edwin L. Knight, 88, of 7408 Jordan Road, died Wednesday in Mendoza Nursing Home, Sandusky, after a long illness. He was born Aug. 10, 1885, in Provo, Utah.

He married Dora C. Walls Juen 30, 1920. She died Nov. 10, 1966. Knight was a retired tool and diemakerof Ford Motor Company.

He was a life member of Friendship Lodge No. 417, F. A. M. He is survived by three daughters, Mrs.

Harold Frost, Melvin, Mrs. Ralph Slate, King, N. and Mrs. Thomas Kinne, St. Clair Shores; sons, Edwin J.

Knight, Ortonville, and Norman A. Knight, Roseville; 12 grandchildren and 14 great grandchildren; a sister, Mrs. Charlotte Anderson, Ely, and a brother, William Knight, Reno, Nev. Funeral services will be held at 10:30 a.m. Saturday in Carman Funeral Home, Peck.

Rev. Leslie Collver, retired Methodist minister from Croswell, will officiate. Burial will be in Gethsemane Cemetery, Detroit. A Masonic service will be conducted at 8 p.m. Friday under the auspices of the Peck F.

A. M. Lodge. Mrs. Herman Leverenz ST.

CLAIR-Mrs. Gladys M. Leverenz, 64, of 2204 St. Clair Highway, died Wednesday in Faith Medical Care Faci-. lity after a long illness.

She was born Feb. 11, 1909, in China Township. She and Herman Leverenz, Casco Township, were married June 16, 1926. Mrs. Leverenz was a member of St.

Peter's Lutheran Church. She is survived by her husband; two sons, Melvin and Kenneth Leverenz, both of St. Clair; a daughter, Mrs. Marion Zimmer, Heidelberg, Germany; eight grandchildren and two great grandchildren; a sister, Mrs. Alice Osterland, and a brother, Ralph Lindow, both of Marine City.

The remains will be in the Jay Street Colonial Chapel Funeral Home from 7 p.m. today until 12:30 p.m. Saturday when the they moved to St. Peter's Church. Funeral services will be held at 2 p.m.

Saturday in the church with Rev. Paul Reyelts, pastor, officiating. Burial will be in Hillside Cemetery. Memorials may be made to St. Peter's Lutheran Church Building Fund.

Mrs. Kenneth Maharg CASS CITY Mrs. Maxine Maharg, 54, died Tuesday in her home in Grant Township, Huron County. She was born Feb. 8, 1919, in Gagetown.

She and Kenneth Maharg were married July 19, 1941, in Detroit. Mrs. Maharg was a member of the Women's Council of St. Pancratius Catholic Church, Cass City. She is survived by her husband; four sons, Larry Maharg, Hershey, John Maharg, Elkton, and James and Jeffery, both of Cass City; two grandchildren, and a sister, Mrs.

Maynard Doerr, Royal Oak. Funeral services will be held at 11 a.m. Friday in St. Pancratius Church. Rev.

Leo Gangler, pastor, will officiate. Burial will be in Elkland Cemetery. The remains are in Little's Funeral Home, Cass City, where the Rosary will be recited at 8 p.m. today. Mark D.

Vatter DECKER Mark D. Vatter, 17, of 4110 Decker Road, died Tuesday in a car accident. He was born July 3, 1956 in Sandusky. He was a junior at Cass City High School. He is survived by his mother, Mary Ellen Vatter; a sister, Tamara Vatter, at Ferris State College; three brothers, Timothy, Todd and Scott Vatter, Decker, and his grandfather, Howard Rathbun, Ubly.

His father, Eugene Vatter, died Jan. 22, 1971. Funeral services will be held at 1:30 p.m. Friday in Zinger Funeral Home, Ubly. Rev.

William Burgess, pastor of Shabbona Methodist Church, will officiate. Burial will be in Valley Cemetery, Ubly. The remains will be in Zinger Funeral Home after 7 p.m. today. Infant Daniel Wooters CASS CITY Infant Daniel Wooters died Wednesday in Hills and Dales General Hospital, Cass City.

Daniel was born Tuesday to James E. and Mary Wooters, Evergreen Township, Sanilac County. He is survived by his parents, a sister, Dawn, and his grandparents, Mr. and Mrs. Elroy Packard and Mr.

and Mrs. Jerry Samons, all of Cass City. Funeral services will be held at 2 p.m. Friday in Little's Funeral Home, City. Rev.

Charles Thompson, pastor of Mizpah Missionary Church, will officiate. Burial will be in Novesta Cemetery. troversy over deductions from the President's tax returns for 1970, 1971 and 1972 for the value of his vice presidential papers which he donated to the National Archives in 1969. The papers were valued by the President at about $576,000. The key question concerns whether the donations were lawfully made in advance of a mid-1969 cut-off, voted by Congress to disallow tax advantages for donations for such items.

The Joint Congressional Committee on Internal Revenue Taxation already is taking a probe of Nixon's tax returns from 1969 to 1972 and is considering the paper at the President's request. Nixon said he paid no taxes on the sale because he was told at the time there was no profit, but he later ordered an audit of the transaction that concluded he had a $117,370 profit. The President has said he will abide by the decision of the congressional committee on the two tax questions and pay any additional taxes it feels are due. Estimates of the potential additional tax range as high as $300,000. In addition to the small amount of tax paid in 1970 and 1971, the President also paid $4,298 in 1972.

Altogether, thxes totaling less than $6,000 for the three years were about what a man with a salary of $17,000 might have paid. The President's own net worth in recent years has grown to about $1 million. His annual presidential salary is $200,000. The IRS said in a statement Wednesday that the President's representatives were cooperative fully in the new News in brief Mamie in hospital WASHINGTON (AP) Mamie Eisenhower, the 77-year-old widow of President Dwight D. Eisenhower, is in Walter Reed Hospital for what the hospital says is a routine checkup.

A spokesman said he did not know how long she would stay in the hospital. Likes the job WASHINGTON (AP) Sen. J. W. Fulbright is off and running again.

The Arkansas Democratic announced on Wednesday he will seek a sixth term next fall. Fulbright is chairman of the Senate Foreign Relations Committee. A member of the Senate since 1945, he came to Washington in 1943 as a Democratic representative from Arkansas. Ray turned down NASHVILLE, Tenn. (AP) James Earl Ray, who pleaded guilty to the slaying of Martin Luther King has lost a bid to prevent his transfer to a federal prison.

Ray filed his petition in U.S. District Court Dec. 27, protesting a proposed transfer from the Tennessee State Prison to what he called "a federal mental institution in Springfield, Mo." U.S. District Court Judge L. Clure Morton denied on Wednesday Ray's request for a temporary restraining audit and that they had authorized the public announcement that a new audit was underway.

The IRS said the announcement was being made because of questions raised in concerning action on IRS! the presidential returns. The IRS also said it was cooperating with the taxation committee in its study and would exchange information with the committee on the respective probes of the Nixon returns. A spokesman said there was no way of predicting how long the new audit might take. In Sacramento, Nixon's California tax lawyer said the President will make a full disclosure of his state income tax status. The report presumably will contain Nixon's legal arguments for not paying any California income tax since he has been President.

The White House said in December that Nixon has not filed a state income tax return since 1969. His tax lawyers contend he is not a resident of California for tax purposes. Dean S. Butler of Los Angeles said he has been authorized to sign a document that would allow officials of the California Franchise Tax Board to comment, publicly on Nixon's tax liability or the lack of it. The only question to decide is when to sign the waiver of confidentially and in what fashion the material will be made public, Butler said.

The IRS spokesman also said there are three circumstances where the tax agency will audit tax returns a second time, although the circumstances seem broad enough to cover most eventualities, -When evidence has been uncovered of possible fraud, malfesance, collusion or misrepresentation of material facts. the prior closing of an audit involved a clearly defined substantial error based on established substantial IRS policy that existed at the time of the previous examination. -Or when other circumstances exist that indicate a failure to reopen an audit would be "a serious administrative omission." National Optimism on Skylab SPACE CENTER, Houston mechanical (AP): The Skylab 3 flight has had and human errors, but its commander says "by golly we're going to make it" the full 84 days. Commander Gerald P. Carr also said the error early days of the mission are behind a because of a new understanding between the ground and the crew on the work schedule.

Carr, William R. Pogue and Edward G. Gibson also told newsmen from space Wednesday the 48th day of an intended 12-week space voyage that their space experience has brought changes of "almost a spiritual nature" in their views of themselves, of other humans and of the possibility of life existing elsewhere in the universe. Church goers faithful order against the state. Gannet MIX or MATCH SPECIAL Delta Super Sure Delta XP-78 Trac 4 Ply Polyester 4 Ply Polyester Whitewall Low Profile "78" Series Low "78" Profile Series design WE SERVICE SELL WE Studding WHAT Adaptable SIZE PRICE E78x14 DELTA'S NATIONWIDE GUARANTEE NEW J78x15 AGAINST ROAD HAZARDS FOR STEEL WHEELS L78x15 F.E.T.

$2.24 to $3.16 RATED DEFECTS ON IN TIME. MONTHS MATERIALS, ADJUSTMENTS WORKMANSHIP AGAINST PROSPECIFIED AVAILABLE LIFE OF TREAD. PRO-RATED ON FREE INSTALLATION TREAD WEAR. BASED ON SALE PRICE WHEN RETURNED. 70 Tire Sales "Eastern Michigan's Professional Tire Dealer" 1014 Lapeer Ave Port Huron 985-8188 "SPECIALIZING IN HIGH SPEED WHEEL BALANCING" SHOCKS, WHEEL ALIGNMENT, BRAKE SERVICE your master charge THE INTERBANK CARD BANKAMERICARG Daily 8-6 Mon Friday 8-9 walrom has NEW YORK (AP) They come by foot, on bicycles and in car pools.

They are the nation's faithful, and church leaders say they are flocking to worship services despite Gasless Sundays. At the onset of the energy crisis, some religious leaders feared parishioners would not use up costly fuel to go to church. But an Associated Press sampl-. ing of churches in 17 states showed attendance had not been adversely affected in most areas surveyed. STOCK QUOTATIONS Following are today's market quotations on stocks of local interest: U.S.

Industries SEM Gas Co. a. Detroit Edison .17 Ex-Cello-0 U.V. Industries Eltra Corp. Port Huron Paper a.

Dennison Mfg. Co. ...19 Mich. Nat'l Corp. 38 40 a..