Dayton Daily News from Dayton, Ohio • 1

Ik1" 3 i 3 Donoher captures elusive 300th win Bedtime story: The lacy look is in Sampson of Sambo takes aim on title Y. ft Cloudy tonight; low 37-39. Partly cloudy Friday; high 54-56. Details, Page 38. Business News 22 25 Classified 39 45 Comics 44 Lifestyle 15 DearAbby 16 Sports 29 geths 38 Television 46 Dr.Steincrohn 38 The Number 2 Editorials 10 Vital Statistics 38 77 Afr.

hMq', I Li. BAYTOM BADLY W. Volume 104 Number 162 Dayton, Ohio, Thursday Evening, February 19, 1981 48 Pages 2K Key point: Can Reagan economic plan work? to a day of reckoning in the very near future?" This put-up-or-shut-up ploy is part of the administration's strategy to divide and conquer. It is directed at winning the acquiescence, if not the cheering support, of congressional skeptics and at keeping the many beneficiaries hurt by reduced outlays from forming coalitions of single-interest groups. IF THE REAGAN PROGRAM clears the many hurdles it faces on Capitol Hill, it will reflect as radical a change in mainstream economic thinking as this country has experienced since the New AND AFTER ASSURING a joint session of Congress that the truly needy In American society will still be protected by a "safety net" of entitlement programs, he pressed the advantage of his landslide election and the disarray in Democratic ranks by offering up one final challenge.

With a rhetorical flourish clearly aimed at members of the opposition party, he asked whether "those who have indicated an unwillingness to accept this plan" have a preferable alternative. If not, he wondered aloud, were they suggesting that "we can continue on the present course without coming fact that growth rates for labor productivity and manufacturing capacity have fallen off sharply over the last 15 years or that capital formation has slowed since 1973. But they part company when it comes to explaining why these things happened, what part a supply-side approach can play in producing an upswing, and what effect the Reagan program would have on inflation. Barry Bosworth, director of the Council on Wage and Price Stability during much of the Carter administra- See UNANSWERED, Page 4. many members of Congress privately acknowledge that they are confused about what to do.

One junior member of the House, emphatically insisting on anonymity, said after Reagan's speech: "I don't know where I'm going to end up on this thing. I would vote for the package if I could be sure it will work. But to do that, I'd have to vote to trim or eliminate programs that my people back home want. What If I vote for the package and it doesn't work it doesn't create the jobs we need?" ECONOMISTS DO NOT dispute the Deal of President Franklin D. Roosevelt almost 50 years ago.

Then the question will become: Can supply-side economics accomplish all of the magic its adherents say it will? The cornerstone of this newly popular 'approach to running the nation's economy is that lower tax rates produce higher government revenues and that productivity goes up when taxes go down. But because the theory and practice of supply-side economics has never before become the driving force behind a national plan for economic recovery, By TIMOTHY ADAMS Cm Ntwi Strvlci WASHINGTON Now It's up to Congress. President Reagan used every carrot and stick in the politician's bag of tricks Wednesday night to sell his unorthodox prescription for curing the nation's economic ills by slashing taxes and moderating the growth of federal spending. He exuded confidence that the strong medicine in his conservative, supply-side blueprint would If swallowed balance the budget, create 13 million new jobs and "put us well on the road" toward eliminating inflation. Hoiv President's 4-point, 3-year plan is to work: Reagan proposals to have big impact on Miami Valley IS rJt 7 ft- i nrY i-V-1" JVV V.r;v This story and accompanying ones are based on reporting by Dayton Daily News staff writers Bob Bowman, David Dykes, Bill Fox, D.J.

Hill, Wes Hills, Benjamin Kline, Betty Dletz Krebs, Don Stewart and Doug Lowenstein, and special writers John Alexander, Terl Krimm, Aleene C. Tyo and Katherine Ullmer. By DAVID DYKES And DOUGLAS LOWENSTEIN Daily News Staff Writers The Dayton area's economic recovery efforts, including the attempted employee buyout of Dayton Press face a severe setback if Congress goes along with the budget cuts proposed Wednesday by the Reagan administration. The proposals also cut deeply into programs that provide public employment and financial assistance for those unable to find jobs in a period of high unemployment. And some local governments already facing budget squeezes will have to search for ways of living with additional financing cuts.

IT REMAINED UNCLEAR what effect, if any, the cuts proposed Wednesday would have on the proposed 1-675 bypass. A state official said the cuts make it less likely the bypass would be constructed as an interstate highway, but a federal transportation official indicated that 1-675 funds might not be affected. In addition, the Miami Valley Regional Transit Authority, which now provides countywide service, faces loss of operating subsidies and may not only have to curtail future growth but The Reagan odministrafion'i pro-posed cuts in Comprehensive Employment Training Act programs would leave 3,500 area residents jobless. Page 13. U.S.

Rep. Tony P. Hall (D-Dayton) thinks President's proposals generally excellent, but not all area and state law. makers share his view. Page 4.

choose between a cutback and seeking additional local tax revenues. Here are the major budget reduction proposals and their impact on the Miami Valley, as far as could be discerned Wednesday evening: COMPREHENSIVE EMPLOYMENT AND TRAINING ACT (CETA): The administration would phase out at the end of the current fiscal year the two CETA programs providing public service employment in state and local governments. That could leave jobless about 3,500 Miami Valley residents now employed in CETA-funded local government and community service agencies and shut down some programs aimed at training unemployed persons for work. ECONOMIC DEVELOPMENT ADMINISTRATION (EDA): The administration would eliminate funding for EDA. Funding in the current fiscal year would be rescinded, causing a reduction in FY81 spending of $24 million, and spending in FY82 would be reduced by $440 million.

That could eliminate major moves planned by the city of Dayton to pursue See IMPACT, Page 5. By ANDREW MOLL1SON Ctx News Strvtct WASHINGTON Here is President Reagan's four-point, three-year plan for improving the economy, plus the effects he predicted and the highlights from each category: The four points Cut some taxes and raise others. Taxpayers would save $8.9 billion this fiscal year and $51.9 billion the next, escalating to $145.1 billion in 1984. Cut spending, except in defense and "safety net" social programs. Anticipated spending would be reduced by $5.5 billion in this fiscal year and $49.1 billion the next, escalating to $85.9 billion in 1984.

Reduce federal regulations and regulators. Compliance costs would go down by $100 million this year and $500 million next year. The offsetting increase in illness, accidents and deterioration of the environment was not calculated. Encourage the independent Federal Reserve system to reduce the growth rates of money and credit to one-half of 1980 levels by 1986. The effect on interest rates -was not calculated.

Predicted effects The inflation rate will drop from this year's 9.9 percent to 8.3 percent next year, decreasing to 6 percent in 1984. The Consumer Price Index will go up 11.1 percent this year, but only 9.3 percent next year, decreasing to 5.5 percent in 1984. The unemployment rate will be 7.8 percent this year and 7.2 percent next year, sliding to 6.4 percent in 1984. The federal deficit will drop from $54.5 billion this fiscal year to $45 billion the next, with a balanced budget by 1984. The average worker's wage adjusted for inflation will rise by 8 percent in after-tax dollars.

Production of goods and services in the U.S. economy will increase 1.1 percent this year and 4.2 percent next year, escalating to 10.8 percent in 1984. Federal outlays will drop from 23 percent of the Gross National Product this year to 21.8 percent next, year and 19.3 percent by 1984. Federal receipts will drop from 21.1 percent of the Gross National Product this year to 20.4 percent next year and 19.3 percent by 1984. Highlights Saving taxpayers $132 billion during Reagan's first term, individual income tax rates will be cut from See HOW, Page 4.

SMUPIWKkVWlllRMm G)vered bridge is left in rubble after early morning collapse Collision destroys covered bridge The bridge, on the National Register of Historic Sites, was built on Dayton Pike in 1870. In 1911 it was moved one block to the Center Street location. Village historian Carl Michael said the 102-foot long 16-foot wide sturcture was an inverted bowstring covered suspension bridge. In 1962, a community effort completed restoration of it The county's other two covered bridges are on private property. One of them Is in Carillon Park in Dayton.

The other is on Jasper Road over Mud Lick Creek on property owned by Dr. James Laws. By ACE ELLIOTT Daily News Staff Writer One of only three wooden covered bridges remaining in Montgomery County was destroyed early today. It collapsed Into Little Twin Creek at Germantown after it was struck by motorist Germantown police said the car hit an end support of the old wooden span on East Center Street in Germantown about 1:35 a.m. The motorist, a German Twp.

resident, was cited by police for reckless operation. First-class postage to cost U.S. Postal Service wins approval for price hike I Nixon in limelight like king returning from exile By JIM RIPLEY class letter and 17 cents per ounce after that On other classes of mail, be said the commission approved rates generally similar to those requested by the Postal Service. The commission allowed a 12-cent charge for post cards, penny less than the Postal Service wanted. The commission also expanded discounts available to business mailers who do preliminary sorting of their outgoing mail After receiving the commission's decision, the Postal Service is expected to call a meeting of its governors, wL must give final approval to the new rates.

WASHINGTON (AP) The Postal Service today won approval to charge 18 cents to mail first-class letter, 2 cents less than it wanted. The new rate can take effect on 10 days' notice. The new rate plus Increases for other types of mail were approved by the Postal Rate Commission, a tiny government agency that reviews Postal Service requesti for higher rates. Postal Rate Commission Chairman Lee Fritschier said the rates will bring the Postal Service about $1 billion less per year than the $175 billion it had said it needs. Fritschier toid a Senate subcommittee today tfie commission approved the 18-cent rate for the first ounce of a first- to the state capital Wednesday wis hardly the same ashen and embittered man who left the White House after resigning the presidency about 6H yen ago.

At the $500-aouple prime rib dinner. Nixon delivered a foreign policy message that was prefaced by a strong endorsement for President Reagan's economic proposals and that included an assurance that Reagan has the leadership ability to solve our military and international problems. But the fact that be emerged from the relative seclusion of his New York Qty office to appear at a political event seemed to mean more to the crowd than did his message. See NIXON, Page 7. Cnnp of 150 potter-wtvins protesters on iiatf tor Mioi sppttnact.

Pigt 35. standing ovations, cheers and whistles. And a nostalgic, even sentimental Nixoa soaked it in. AUTOGRAPH SEEKERS poured over him. And he obliged every one.

Reporters accosted him with questions upon his arrival at the Columbus Sheraton Hotel and be left the Ohio Senate Republican fund-raiser where be was the keynote speaker. And Nixon Engered to answer each and departed with a friendly, "Nice to see you." Tanned, smiling and relaxed, the Nixon who came COLUMBUS Ohio Senate President Paul Gill-mor surveyed the bead table in the large ballroom where a chatty Richard M. Nixon sat at the focus of two kmg fines, cheerfully signing autographs. This has got to be an adrenalin boost for Nixon," the Port Clinton Republican concluded. The former president stepped back Into the Hme-light here Wednesday night in his first appearance at a purely political event since his fall in disgrace and was treated like a triumphant king returning from exile.

The crowd of more than 600 Republican contributor and lobbyists oozed an admiring welcome with I.