The Manhattan Mercury from Manhattan, Kansas • 8

I A8 The Manhattan Mercury Monday, December 9, 1974 State budgets to feel inflation late Christmas Story I Peako Santa's problem pup By GINNYPITT Associated Press Writer Inflation and economic problems reflected in the average consumer's grocery bills also affect state governments. But most state officials surveyed by The Associated Press believe state governments won't really begin to feel the squeeze for a year or more. Since state budgets are prepared on a fiscal year basis, July 1-June 30, the current economic situation and rate of inflation were not taken into account when budgets were drawn up last spring. However, the Commerce Department reported Sunday that the growth of state tax revenues for 1974 didn't sales and personal income taxes. Only a few, such as Delaware, have no sales taxes and rely primarily on earnings taxes which decrease as massive layoffs are implemented.

In Delaware, the Governor's Economic Advisory Council meets monthly to review the state's financial outlook. Members say they are worried but have not yet figured out revenue projection adjustments to reflect the worsening state of the economy. In New York state, Hugh L. Carey has called for a hiring freeze on state employes and has indicated it may be necessary to impose a Vk per cent income tax surcharge despite his campaign pledge not to raise taxes. In California, legislative analyst A.

Alan Post said: "We may have to have some tax increases in the future because our costs are going to go up more rapidly than our revenues." Some states will be looking for places to trim programs rather than raise taxes, with prime targets for cutbacks being state social services, highway maintenance and higher education. keep up with the rise in prices. Tax income for all 50 states totaled $74.1 billion in 1974 compared to $68.1 billion the previous year. This was a rise of only 8.9 per cent compared to a 10.9 per cent jump in prices for the same period. This means that the surpluses projected in most state budgets or the current fiscal year will have a tendency to evaporate.

And drawing up the 1975-76 budgets in coming months will force many states to choose between raising taxes or cutting services. "We are looking at a rather tight budget situation the rest of this year and all of next year," said Florida Budget Director Wallace Henderson. Richard D. Lamm of Colorado said the national economic situation "gives a message to all of us. This is a time for extreme caution." Officials from some states said increased taxes or changed tax structures may be necessary to meet inflation-related problems.

Most states rely heavily on sales taxes for revenue. Some combine IJJM ft St 7 Wr 0tvv And licked him right on his nose. By BOB BOYLE Chapter 1 Juniperperper and Jlnkersnlpes, two of Santa's elves, were walking back to Santa's house for lunch after spending the morning working in the Christmas ball factory. The two walked together for a short distance when Jinkersnipes heard a strange noise. The noise continued.

"Maybe it is a big polar bear," Jinkersnipes said. "It sounds like a dog!" Juniper perper said. "But all the pups are in Santa's kennel," Jinkernsipes said. "And the little lady elf, Kay Nihn, takes such good care of them. I'm sure none go loose." "Maybe we better run and tell Santa," Jinkersnipes said.

"No, no, let's take a look behind that big snowbank over there," Juniperperper said. "I bet it is a dog." The two little elves tiptoed to the snowbank, and Juniperperper got on his hands and knees and climbed to the top. He looked over. "Hey," he shouted. "It's a dog." Jinkersnipes shouted, "Is it a big one?" "It's no pup," Juniperperper said, "but it is a small dog.

It looks like a little collie." "Is it friendly?" Jinkersnipes asked "It's wagging its furry tail," Juniperperper said. Juniperperper whistled and called, "Come here, boy! Come on nice doggie!" The little dog bounded up the snowbank, stood in front q( Juniperperper and licked him right on his nose. "Is he biting you?" Jinkersnipes called. "No, he is licking my nose and it tickles," Juniperperper said. "Bring him down," Jinkersnipes said.

Juniperperper got up and rolled down the snowbank with the dog following barking and leaping about. "He certainly looks pretty," Jinkersnipes said. "I wonder where he came from:" "I dont' know," Juniperperper said. "But let's take him back to Santa's house. Maybe Santa will let us keep him as a pet." i OA Nations to buy U.S.

made jets OSLO, Norway (AP)-Norway, Denmark and the Netherlands have decided to buy American jet fighters built by General Dynamics to replace their aging U.S.-made F104 Star-fighters, the Oslo daily Morgenbladet said today. The usually well-informed newspaper said Norway's Defense Minister Alv Jakob Fostervojl will give a briefing in Brussels today on the decision to recommend purchase of the Texas firm's YF16 jet. The paper said Belgium, which had joined the three governments in selecting a new plane for their air forces, had not make up its mind but would probably also buy the $5-miUion YF16. Belgian and Dutch government spokesmen expressed surprise at the Oslo report. A Belgian Foreign Ministry spokesman said in Brussels he had not heard of any decision and did not expect any until next month.

The Dutch Defense Ministry called the reports "completely premature" and said research reports on competing American, French and Swedish jets were not expected until the third week of December. The four North Atlantic Treaty Organization allies earlier this year set up a joint study group headed by Norway's Fostervoll to coordinate the giant aviation deal. The four countries plan to buy 350 new jets with options to buy 250 later. Ultimately the choice of the four European countries could bring the winner contracts for up to 3,000 lightweight jet fighters worth $15 billion. The U.S.

Air Force is planning to buy 650 new planes, and the NATO choice could reportedly influence the U.S. decision. call him Tea because he likes tea." "No, no," Juniperperper said. "That would be a silly name for a How about Orange? It's orange pekoe tea, you know." Mrs. Claus clucked her tongue and said, "Boys, that wouldn't be a good name for a dog, but I have a fine name." "What, Mrs.

Claus," they shouted. "Tell us." "Well, why not call him Peako," she said. "I think that is a fine name for a dog." "Peako!" Juniperperper said. "That is a nice name." "Peako," Jinkersnipes said. "That is a good name." "Well then, Peako it is," Mrs.

Claus said as she walked over to the dog and petted him on the head. "You're a good dog. Peako, and welcome to the North Pole." "Can we keep him then, Mrs. Claus?" Juniperperper asked. "Oh, boys, you all know, Santa's rules," Mrs.

Claus said. "All pets at the North Pole must be delivered Christmas Eve. Suppose we kept all adorable pets, why, not a child would get one." "Please, Mrs. Claus," they pleaded. "That's Santa's decision," she said.

"Let's go ask Santa," Jinkersnipes said. "Let's hurry." The two little i elves with their newfound friend, Peako, at their heels ran toward Santa's office. The two little elves ran lickity split down the winding trail to Santa's house with the little dog running happily behind them. They ran into the kitchen. Mrs.

Claus turned to look at the elves. "What in the world is that with you?" she said. "Where did that dog come from?" "We don't know, Mrs. Claus," Juniperperper said. "We found him behind a snowbank and he followed us home." "Well he isn't one of Santa's pups," she said.

"Ah, the poor dear looks frozen. Let's give him something warm to drink." Juniperperper rushed to the stove and took a bowlful of warm tea from it, and placed it before the dog. "Juniperperper," Mrs. Gaus said. "Dogs don't drink tea." But before her words were out, the little dog was lapping up the tea.

"He likes it, Mrs. Calus," Jinkersnipes said. "My, that is a strange dog," she said. "I never knew of a dog that would drink tea. And, that is my good orange pekoe tea." "Look, Mrs.

Claus," Juniperperper said. "I believe he wants more." Juniperperper put some more warm tea in the bowl and the dog, wagging its tail, lapped up the rest. "I wonder what his name is," Mrs. Claus said. "I know," Jinkersnipes said.

"Let's 1 Ul omo1 Probes Playboy use of drugs "doesn't mean Hefner has knowledge of it, or condones it, or distributes." Crawford said he never discussed the alleged drug use with Hefner, but he added that he submitted reports for Hefner's attention. Narcotics investigators contended that drugs were not sold in the mansions, but were made available to guests and some staff members. PEOPLE'S SAVINGS PLACES (EE IN YOUR SAVINGS ACCOUNT for even more earning power! CHICAGO (AP)-The former head of security for Playboy Enterprises said he testified three months ago to a federal grand jury about drug use at the mansions of Playboy publisher Hugh Hefner in Chicago and Beverly Hills, Calif. In a telephone interview, Allen H. Crawford said Sunday that he resigned his post last July because Playboy officials ignored his warnings about "the narcotics problem and people of questionable character that might be associated with Playboy." Seven Playboy employes reportedly have been subpoenaed to appear this week before a grand jury in Chicago in connection with a federal investigation by the Drug Enforcement Administration into drug use inside Hefner's enclaves.

The investigation was disclosed after the1 recent federal conviction of Hefner's social secretary, Bobbie Arnstein, for conspiring with a boyfriend and another man to distribute cocaine. Miss Arnstein 's arrest last March reportedly sparked an order by Hefner, who was in Las Vegas at the time, to remove all drugs from both mansions, officials said. Crawford said from his home in Mendham, N.J., that he learned of the problem about 2xk years ago when he became head of security. "I certainly had knowledge that there were people that were using drugs, but not on the basis that this was a place of distribution or anything else," said Crawford, vice president in charge of investigations for Wells Fargo Investigative Services, in Randolph, N.J. "Hefner is a very congenial host and has the Playboy philosophy that people are adult and make their own decisions," he added.

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