The Escanaba Daily Press from Escanaba, Michigan • Page 1

ESCANABA DAILY PRESS (Serving Upper Peninsula's Leading Trade Area) Year, No. 21 ESCANABA, MICHIGAN FRIDAY, NOVEMBER 15, 1963 10 riges PRICE TEN CENTS Tax Cuts Now Called Gamble By Sen. Byrd WASHINGTON Son. Harry F. Byrd accuses President Kennedy of taking a dangerous with the nation's solvency by trying to cut taxes while there are prospects of increased spending.

Byrd, Virginia Democrat who heads the Senate Finance Committee. disputed in an interview Kennedy's news conference assertion Thursday that economy will if the Senate does not act quickly on the Ilouse-nassed $11 billion tax-cutting bill. The intimation that this and other bills were being delayed in a slowdown to prevent action on civil rights also was denied by Bvrd. The senator made it clear, however, he doesn't the measure to be ready for Senate action this year. Must Curb Spending There is room for a tax cut.

Bvrd said, if substantial reductions are made in spending. Instead. he said, the Kennedy administration is planning an increase in in the coming fiscal year. Here are views he expressed in an Associated Press interview What do you think of President Kennedy's proposal to reduce taxes and at the same time to keep at present or even higher levels? A I regard it as a very dangerous gamble with our solvency. Never in the history of our country has any President advocated a planned deficit in order to reduce taxes.

I feel that it is very untimely because we've already got a deficit this year of $9 billion. A tax cut of $11 billion will be added to the public debt. Never Tried Before This is the most important financial bill ever come before the Finance Committee because of the new policy of borrowing money to lower taxes and increasing expenditures at the same time. Has it ever been tried before in this country. A It has never been tried before and no president has ever recommended it.

The President said the economy will suffer if the tax bill isn't passed quickly. A When the President started this idea of a tax reduction on borrowed money, he predicted a recession if his bill wasn't enacted quickly. It occurred. Today we're enjoying unusual prosperity. The administration says its primary objective is to attack hard core unemployment.

Do you think the federal government has a responsibility there? A I think it has some responsibility but 1 think private enterprise also has a responsibility. We must remember when we of unemployment that we actually have the highest employment in the history of the country. Not Much Reduction We have over 60 million people employed, as of now, and (Please Turn To Pg. 10, Col. 6 Legislature Dumps Romney Tax Parcel U.S.

Relations Free Spending With Soviets Abroad Not Free In Deep Freeze For Taxpayers NEW YORK MAYOR Robert F. Wagner; George Mcany, president of the AFL-CIO; New York Governor Nelson A. Rockefeller; and Walter Reuther. president of the UAW, left to right, stand on the platform at the AFL-CIO convention in New York. Creating more jobs for 13,500,000 union members is a top for consideration at the convention.

(AP Wirephoto) Tax Cut Will Create Jobs, Kennedy Tells AFL-CIO NEW YORK President Kennnedy told the AFL-CIO convention today his proposed $U-billion tax cut would put wind back in the sails of the nation's economy and create lions of jobs. mcnt solutions proposed by Gov. Nelson A. Rockeller of New York, candidate for the Republican presidential nomination. mil- Rockefeller said a national I job placement center is the kev He agreed with the union del- I missing clement to provide egates that unemployment is I wo, for a large portion of the the nation's chief domestic prob- nation jobless workers.

lem. we can obtain the prompt passage of the SI 1 -billion tax reduction bill we will be sailing by next April on the winds of the longest and strongest peacetime expansion in our economic Kennedy said in a speech. Top Item Avoided But he avoided the question of reducing the work week, the top priority item of business laid before the convention by AFL CIO President George Mcany. urgently need a tax cut now as insurance against Kennedy said. The tax bill, which the administration hoped to get passed early this year, is bogged down in Congress.

need that cut. as this bill Kennedy will find the AFL CIO agrees with his proposed 11 -billion tax cut and other federal measures to create jobs. But AFL CIO President George Meanv's call for 35 hour work week or shorter is major of disagreement with the administration. To Mcany said cutting the work week is the only solution for unemployment. He criticized those who say automation can become either a curse or a blessing.

is no element of blessing in he said. is rapidly becoming a curse to our job placement proposal and his call for strict control on federal spending as a condition for a tax cut were greeted by silence. TTic only applause of note for the governor came when he repeated his opposition to a federal an obvious crack at his prime potential opponent for the presidential Barry Gold- watcr of Arizona. Moonshot Given One Chance In 4 the percentage cuts ilities in the lower times as the upper said. benefits of unemployed Weather Hv Upper Peninsula Considerable cloudiness through Saturday.

Cool this afternoon and tonight, becoming a little warmer Saturday. tonight 27 to 33. high Saturday 42 to 50. Lower Mich. Mostly cloudy and cool this afternoon and tonight 26 to 34, high Saturday 46 to 54.

Highest temperature Thursday 45, lowest 33. Highest temperature one year ago today 55, lowest 42. Highest temperature this date since 1872, 71 in 1928. lowest 10 in 1933. The sun sets today at 5:12 p.m.

and riaes Saturday at 7:25 am. The moon sets today at 5:14 p.m. and rises Saturday at 7:31 a.m. PASADENA, Calif. The television-toting Ranger VI mooncraft should have its faulty electronic parts replaced and provides, where it will do the be ready for shipment to Cape most good in tax lia brackets are three large as those in Kennedy the greatest all willl go to the for whom the tax cut will provide two million to three million new remarks before more than 1.000 delegates 13.5 million union members followed administration i)olicy of fending off demands for a shorter work week by emphasizing tax cut benefits.

Only One Solution The AFL-CIO also wants the tax cut. along with other federal measures designed to create jobs, but Mcany said Thursday that unemployment threatens a national catastrophe and the only solution is to cut the work week to 35 hours or less. The convention Thursday gave short shrift to unemploy Canaveral, by mid-December. Even then, the boss of the trouble plagued project to crash-land cameras on the moon gives Ranger VI only one chance in four of complete success. Korean Ambush Draws Protest Circus Cripple To Wed Nurse Albuquerque Atlanta Bismarck Boise Boston Bui fato Chicago Cincinnati Cleveland Denver Des Moines Detroit Fairbanks Fort Worth Helena Honolulu Indianapolis Jacksonville Juneau Kansas City 68 Miami 67 47 Milwaukee 43 45 P.

39 66 New' Orleans 56 47 New York 48 42 Okla. City 55 49 ()maha 44 45 Philadelphia 50 46 Phoenix 80 71 Pittsburgh 42 43 Ptlnd, 44 45 Ptlnd, O. 57 11 Rapid City 57 61 Richmond 52 63 St. Louis 49 82 S. Lake City 66 48 San Diego 69 54 S.

Francisco 63 35 Seattle 55 49 Tampa 56 Angeles 67 Washington 51 i DETROIT Crippled Mario Walienda of the famed Flying Walienda circus troupe and the nurse who helped him through his disaster last year are going to be married. Linda Croninger, 24, a nurse at Highland Park General Hospital, confirmed Thursday she and Walienda, 24, plan to wed within the next few weeks. Their romance goes back to January of last year when Wal- lenda suffered paralyzing injuries and two colleagues were killed when the Wa high wire act collapsed at a Shrine circus at the Detroit fairgrounds coliseum. Mario is a paraplegic, paralyzed from the waist down. He is now in Sarasota, having rejoined his circus family after a long hospital Detroit.

he left here in September, I sure if ever see him Miss Croninger said. still were just They kept in touch with each other, however, and love resulted. Miss Croninger said. Today's Chuckle A dime is a dollar with all the taxes taken out. SEOUL.

Korea The UN. Command said today it believes a Communist ambush that killed a South Korean army captain and wounded an American soldier the demilitarized zone was an isolated incident. The command said on the eve of a meeting with Communist North Korean military officials to protest the shooting that the rest of the 151-mile front between North and South Korea was quiet. The North Koreans agreed to meet Saturday with U.N. Command officials in the Panmun- jom truce village to discuss a U.N.

protest of the attack. The Korean captain. Hong Chung-wi, 33, and the American. Spec. 5 Harold Aldrich.

26. of Montrose, were part of an unarmed patrol of two Americans and six South Koreans sent out Wednesday to inspect zonal markers about 60 northeast of Seoul on the bank of the Pukhan Riv- And the U.S. space agency Is paying $5 to $6 each for diodes in the follow-on Surveyor moon craft instead of the 35 cents paid for the bad diodes now being removed. This came to light Thursday in Associated Press interviews with the managers of the two programs to scout the moon for manned exploration. Harris Schurmeier, Ranger boss at the space agency's Jet Propulsion Laboratory, said he expects replacement diodes to arrive next week and that if nothing else goes wrong Ranger VI should be launched in the first quarter of 1964.

Diodes are tiny electronic parts which do the work of radio tubes in spacecraft control systems. Some diodes in the spacecraft, originally scheduled to be launched last month, were found to be faulty and the shot was postponed. course, a million and one things can happen before Schurmeier said. done all we could to make Ranger VI work but there still is only one chance in four of complete success for the Pastors March, Land In Jail WASHINGTON US Soviet relations are in a deep freeze and will stay there unless Russia frees Frederick C. Barghoorn.

the Yale scholar arrested on espionage charges. President Kennedy expressed the administration view at his news conference Thursday when he said the arrest of the professor. 52. has the atmosphere between the two countries and declared want to get Professor Barhoorn out of In the view here, the Yale political scientist's arrest marks the low point so far in a gradual deterioration of U.S.-Soviet relations since the agreement reached in Moscow on the limited nuclear test ban treaty. Spirit Fades This once-heralded officials said, is fading as swiftly as the of Camp in brief period of relaxed tensions fol- lowing Soviet Premier meeting with President Dwight D.

Eisenhower. The Barghoorn case is one of several signs that Moscow is getting impatient because the test ban pact failed to bring the results for which the Russians evidently hoped. Other major incidents were the Russian blocking of Allied convoys on the road to Berlin, belligerent remarks and recent anti-American articles in Moscow's gov-, ernment-controlled press. After the test ban pact Moscow was hoping for sweeping changes in U.S. foreign policy, including abandonment of plans to create a nuclear force for the Atlantic Alliance.

Trip Canceled There was some hope expressed by officials that the Kremlin might, in the President's words, recognize the impact of Barghoorn's arrest and release him. This speculation is based on the theory that the professor was picked up so the Soviet Union would have an American to trade for Igor A. Ivanov, Russian trading corporation ploye arrested Oct. 29 in New Jersey and awaiting trial on espionage charges. One official reaction was cancellation of a U.S.

planned departure for Moscow to open negotiations Tuesday on extension of the Amencan-Rus- sian cultural exchange program program Barghoorn had helped along. Fiscal Reform Rejection Ends Special Session WASHINGTON 1 AP 1 There is a persistent myth on Capitol Hill that a congressman can spend U.S.-owned francs galore in Paris and not cost the Amen- I can taxpayer a cent. The facts dispute this. But the myth goes on. When criticism stormed around Rep.

Wayne Hays, D- i Ohio, for taking House restaurant waiter Ernest Petinaud alo on a trip to Paris last week, the congressman replied: cost the taxpayers $88 in counterpart funds, which be used otherwise, so it actually cost When Rep. Adam Clayton Powell, was criticized roundly for taking two young staff ladies along on a trip to Paris last year, the congressman replied that if they spent the francs, the government would have had put a match to At one time, the myth was true. During the days of the Marshall Plan, in the late 1940s and early 1950s, the United States sent great amounts of economic assistance to Europe. European countries paid for this by their own currencies in U.S. government bank accounts.

They were called counterpart funds. These currencies, which were held in huge amounts, could not be transferred. They had to be used in the European country. U.S. embassies in France and other countries had far more counterpart funds each year than they needed for their housekeeping operations.

when a traveling congressman arrived and picked up counterpart funds, he was using currencies that probably have been used otherwise. But times have changed. Today no longer receives the huge amounts of economic assistance that it did during Marshall Plan days. Too, it receives little under the U.S. program of distributing surplus farm commodities, another system that brings foreign currencies to U.S.

accounts. U.S. officials say that the embassy in Paris takes in fewer counterpart funds each year than it needs for American operations in France. So. when a congressman travels to Paris and uses these funds, he is spending money that the embassy has to replace.

And the embassy replaces it by French francs with American taxpayer dollars. Hays was unavailable for comment. His office said he had started driving to his home district in Ohio. Aid Bill Snagged In Senate Spat WASHINGTON with amendments ter dispute over proj)oscd grain Kennedy voiced an miles north er. Tht the mi U.N.

Command Communists of sion. All eight notified the patrol's men wore yellow arm bands identifying them as unarmed men on official business. South Korean troops recovered Hong's today. The other members of the patrol fled back to the river to take cover and escaped when darkness fell. Aldrich, hit in the thigh, was in good condition.

The American leader of the group, Lt. Col. Alphus R. Clark of Leavenworth, was treated for shock and exposure. Births Decline LANSING APi-It like 1963 will be the sixth year in a row in which births have declined in Michigan.

The Health Department says births for the first of this year totaled 130,062. This is down 2-, 363 from births reported through September a year ago. WILLIAMSTON, N.C. Fifteen white clergymen from the North, their leaders carrying wooden crosses, braved an angry white crowd and led an antisegregation arch here Thursday. They were jailed and began a hunger strike.

In the first of two demonstrations in this farming town of 6,000, the Northerners and 54 Negroes, including 22 under 16 years of age. were arrested. Twenty-four Negro teen-agers then marched on the courthouse but they dispersed and there were no arrests. White spectators, some yelling threats, lined the streeets for three blocks near the courthouse for the first march. There was no violence as more than 50 policemen patrolled the area.

The Rev. Harvey Coxe, a professor at Andover-Newton Theological Seminary in Massachusetts, and the Rev. David King, minister of a Congregational Christian Church in Amherst, Ma led the march, carrying four-foot crosses. The other ministers followed, each walking hand-in-hand with a Negro girl. Negro demonstrators lined up behind them.

They were met by Sheriff Raymond Rawls, who ordered the procession to the courtroom. Big Wheat Deal With Russians Runs Into Snag WASHINGTON The giant wheat deal with Russia, apparently set in motion by a new shipping rates formula, ap- I pears once again to have hit a snag. I After meeting with a Soviet trade mission here, a New York dealer told the Washington Post: told us there was no use in submitting At the same time, the dealer said, asked us to be pa- jtient. They indicated something i might be worked out in three or four The grain company official, who was not identified, said he had been told that First Deputy Trade Minister Sergei A. Borisov will seek further talks with Kennedy administration officials.

sales to the Soviet bloc is holding up Senate passage of President badly mauled foreign aid bill. The row erupted suddenly Thursday night just when a final vote on the $3.702.365.000 authorization appeared near after 14 days of debate. It broke out over an amendment by Sen. Karl E. Mundt, to prohibit the Export- Import Bank from guaranteeing payments for private grain sales to Communist countries.

After turbulent exchanges, Democratic Leader Mike Mansfield of Montana offered a motion to kill the amendment. He was defeated 46-40. Senate Republican Leader Everett M. Dirksen of Illinois, who has worked with Mansfield for the passage, failed to vote with him. Opponents of the amendment argued it would kill projected plans for a $250-million surplus wheat sale to Russia and other deals under negotiation with Communist bloc countries.

Until the fight broke out over the grain sale issue, the bill, slashed by $827.250.000 and so test at his news I Thursday, appeared verge of final passage. Kennedy charged that cuts were denying him an sential foreign policy tool. on the the es- Sea Collision Sinks Tanker County Leaders Organized To Promote G.O.P. FLINT Eight Republican executive directors from seven counties have formed a new organization for inter- hauled apart change of information and ideas tug. the Tom and promotion of the Republican Party in Michigan.

It is called the Republican Executive Directors Association of ichigan. The organization was effected at a meeting attended here Wednesday by two executive directors from Kent County and one each from Oakland. I a Genesee, Saginaw, Wayne and i Ottawa counties. BUZZARDS BAY, Mass. AP' mortally crippled oil tanker, a 20 -foot hole gouged in her side by a collision with a Norwegian freighter, sank today 50 minutes after the ships were disengaged.

The end for the 3.100-ton I sonvilk nofuel came home 25 hours after she collided with the Fernview 10 miles west of the southerly entrance to the Cape Cod Canal In patchy fog. The Coast Guard said water ixiured into the gaping opening in the Dynafuel's side carved by the collision. The ships were by a commercial Cat, shortly after daybreak today. The Dynafuel sank in shallow water, her bow protruding above the surface. During the night the fuel drifted east from the point of collision.

She first capsized, then sank near Hole, the Coast Guard said A strong northeast wind whipped up six-foot waves as Sudden Chill Felt In Dixie By The Auoi iilrd A sharp chill crept deep into the Southland today, squeezing temperatures below the freezing mark as far south as central 1 Florida. The mercury settled to a rcc- ord low for the degrees Tallahassee and Cross City, in northern Florida. And it was 35 at Tampa, in the een- tral section, also a record low. Usually mild Miami shivered under record lows for the second day in a row It was 45 gress this morning after a 44- degree chilling early Thursday. The large dome of clear, cold weather extended across most of the nation cast of the is; sissippi Valley.

Early morning lows over the Plains were 10 to 15 degrees warmer than Thursday. A scattering of snow flurries dusted parts of the Northeast. Burlington. was blanketed with a two-inch snowfall during the night. The unseasonal chill in the Southeast pushed the temperature down to degrees, a record for the date, at Key West, Fla.

Other record lows for the date included Augusta, Ga 23, and Columbis, S.C., 26. Atlanta registered 25 degrees and Fla 31. Light rain dampened sections of the Far West and the Northwest. Couple Found Shot Dead In Iron River Home the Dynafuel went down. IRON RIVER Isadore Busakowski, 35, and his wife.

Carol, 31, were found shot to death in their home here Thursday. Police Chief Ralph La Rock said it was apparent murder and suicide. He said Busakowski apparently had shot his wife and then fired a shot through his heart. They were the parents of four children. LANSING.

Mich. AP' Tht Republican controlled Michi gan Legislature Thursday killec Gov. George majoi objective in of the tax structure. Members of his own partj and Democrats, in a test vote ruled 47-44 against the plan. Romney said he try tc pass a fiscal reform plan lr.

1964. It was the first major setback of political career. He often has been mentioned a possible draft choice for Republican presidential nomin ation next year. Romney, upon the collapse, adjourned the speciai session of the Legislature which had debated the merits of his plan for two months. Lawmakers went home without having brought the $306-million plan to a vote on the floor and without voting on the merits of tax reform.

People Lost The test vote in the House of Representatives was on an amendment designed to wTap all the major proposals into one package. The main portions of plan had included a per cent personal state income tax, repeal of some business taxes and changes in pro- ertv assessments. people of Michigan losl Romney said. He earlier had declared future of the Republican party in Michigan was tied to the fis- cal program he labeled and Thirty-one Democrats and II Republicans opposed amendments, while 7 Demo I crats joined 37 Republicans in voting for it. that Lawmakers had rejected pre- angry pro- vious fiscal refor mplans in 1959, conference 1961 and 1962.

Although a 20-11 bi partisan vote, sending an income tax bill back to a Senate committee on Nov. 5 was regarded as the most telling blow, the end came formally on the House vote, i Romney previously set the terms, saying the future of the entire package of bills hinged on vote. amendment would have assured consideration of the entire said Romney. it, tax reform was Behind The Scenes The death dealing vote was the result of behind-the-scene arrangements by House Speaker Allison Green, a Republican, and House Minority Leader Joseph Kowalski, a Democrat. They had agreed earlier in the day that after more than a week of sparring there was no point in going on.

and the amendment was put to a vole. Romney had deemed tax reform so that he asked some Republicans if his program could be if he threatened not to run for governor in 1961. proved a futile Romney said, tested enough to know it would not produce the results I wanted Romney said Thursday, because of bipartisan opposition. Those who have defeated tax reform today are the ones who should answer when people say, where are the jobs for the young Last year the Democrats drafted a fiscal reform program to which also failed. liased On Income l.evy Democrats, in a statement from their state organization, said reform Michigan is dead because a Republican governor was unable to get along with a Republican Romney said the fiscal plan failed elected public officials were not equal to the The fiscal package would have yielded approximately the same amount of revenue as the present tax laws.

Its base was the flat rate 2 cent income tax, with a per cent tax on corporations and a higher rate ior financial institutions. Romney conceded defeat of the program in a late-afternoon press conference and said he does not plan to try again in 1964 He said reform of the Michigan tax structure now impossible (Please Turn To Pg. 10, Col. A.