The Iola Register from Iola, Kansas • Page 1

THE LOLA REGISTER VOLUME 74, NO. 82 MONDAY EVENING, FEBRUARY 1, 1971 TWO SECTIONS 10 CENTS Nixon sets sights on full prosperity W-ASHING-TON-(AP) President-Nixon -sent Congress- today a pledge of more jobs and better business in 1971, plus a promise to use "all the effective and legitimate powers of government" to strengthen anti-inflation forces. 'Full prosperity without war, full prosperity without inflation." But Nixon mere emphatically than ever use of price-wage controls 'or voluntary guideposts. He called the latter "an elaborate facade that seems" to be wage and price control but is His annual economic report to Congress fixed no specific goals or deadlines for recovery. But in the accompanying 309-page report of his Council of Economic Advisers, these targets were posted and presumably approved by him: at 6 per decline to 4Vfe per cent by the middle of 1972.

The official definition df "full employment" is around 4 per cent. inflation rate, which was 5.25 per-cent across the whole economy last year, should be approaching 3 per cent by is measured' "by the Gross National Product. output should total $1,065 trillion in 1971, requiring a record rise of $88 great some economists fear it might rekindle inflation. Nixon's report, third and last Of the major presidential to each new. session of Congress', "noted "prices have begun to rise less rapidly" and added: "There are the first faint signs of a retardation in in some sectors." Nixon said his "full emnlovment hudaet." sent to Congress on Friday, would provide a solid stimulus to expansion.

Its outlays will rise $16.5 billion from this year's spending-level, causing The President hinted at some lack of confidence in the estimate of the deficit. "How big the actual deficit will be," he raid, "will depend on conditions." But Nixon stressed anew his belief in the "full employment budget" theory, under wh'ch federal spending is considered stimulative but not inflationary when it does not exceed the revenues that the tax system would yield if the economy were operating at full employment. Larger spending would be infla- A glance at Nixon's economic message WASHINGTON In the economic report sent to Congress today, President Nixon: record output, more jobs, less price increase. wage-price controls but pledged "effective" action against inflation. as mid-1972 goals a cent jobless rate and 3- per cent inflation rate.

tionary and must be avoided "except in emergencies," Nixon said. Some expansive forces are now at work, Nixon pointed out. They include a 40 per cent rise in the rate of new housing starts from a year ago, strongly increased state and local government spending, sharply reduced interest rates, rising after-tax incomes, and the catching-up of the auto industry from Motors strike. Neither the President nor the council, however, offered an estimate of the anticipated gain in real output or a forecast of the 1971 rate of price advance. projected rise of $88 billion in gross national product would be a 9 per cent gain; seme government experts have suggested it might be about per cent real Increase, per cent inflation.

slow down the rate of inflation in the middle of an orderly expansion," Nixon promised. "And we are going to do it by relying, upon free markets and strengthening them, not suppressing them "I do not intend to impose wage and price controls which would substitute new, growing and more vexatious problems tor the problems of inflation. "Neither do I intend to rely uoon an elaborate facade that seems to be wage and price control but is not. Instead, I intend to use all the effective and legitimate powers of government to unleash and strengthen those forces of the free market that hold prices down." Business and labor must learn a behavior pattern different from the one learned during inflation, Nixon said, explaining: "Labor contracts and price lists cannot embody the expectation that prices will continue rising at the peak rates of recent years. Businesses cannot expect to pass all cost increases along in higher prices." Consumer resistance already has begun to teach these lessons to management and labor, Nix- said, and the government w'll take further by those initiated in the oil, lumber and construction indus- triesi-whenever necessary "to correct the conditions which ghe rise to excessive price and wage increases." The report of the Council of Economic Paul W.

McCracken, Herbert Stein and Hendrik S. Houthakk- the business re- Continued on page 3., No. 1 RUSSELL SUCCESSOR NAMED BY GOVERNOR ATLANTA, Ga. (AP) Gov. Jimmy Carter, named t'6day state Democratic party chairman David Gambrell to the Senate seat left vacant by the death of Sen.

Richard B. Russell. Rocky asks for tax hike to hail out state budget ALBANY, N.Y. (AP) Gov. Nelson A.

Rockefeller blamed Ihe federal government for New York's fiscal problems today as he requested a record round of tax increases totaling $1.11 billion to help finance a proposed state budget of $8.45 billion. The Republican governor told tht GOP-contrplled legislature that he had rto choice except to recommend higher taxes, because Washington apparently was not going to come through on time with the federal revenue-sharing program. Required by state law to present a balanced budget, Rockefeller said the state's present revenue system could not come'! even close to absorbing the $1.53 billion "obligatory" spending increase he faced- Accordingly, he recommended: 10 per cent surcharge on the state's income tax, plus higher brackets for upper-income taxpayers and elimination of cash credits that all taxpayers now are allowed to deduct. one percentage point increase in the state's three per cent sales tax. That would raise the maximum rate in the state to seven per cent, because many communities also levy local sales taxes of up to three per cent.

of one cent on the gasoline now seven cents a gallon; three cents on 'Cigarettes, now 12 cents a package; 10 cents a fifth on liquor, now 45 cents. Fees for motor-vehicle registrations would be raised an average of 50 per cent. boost of about 30 per cent in taxes on the earnings of corporations, utilities and banks. Rockefeller said New York had run into financial trouble because it was not getting enough help from Washington, and he warned that "we could disastrous deterioration of public services" unless the federal government responds. At the same time, he indicated that part of the tax package might be withdrawn if Washington did produce.

He described fiscal plan as "a stopgap, crisis budget subject to revision when 'Congress enacts a meaningful federal aid plan through revenue sharing." The governor's tax-and-spending plan now will be subjected to critical scrutiny, and probable revision, by the legislature. The objective will be to reach an agreement by the Apr4H, start of Ithe state's fiscal year. Astronauts awaxt REG IN A ORTON agrees that a continuation of the mild winter that area resi dents have enjoyed thus far svould be the best Valentine February could corrni up. with. Regina, 17 -year-old daughter of Mr.

and Mrs. Dale Orton; Humboldt, is a senior at the Humboldt High, School where she is a varsity, cheerleader, Rampage in L. A. Rally turns into riot LOS ANGELES (AP) One person was shot to death, more for assault than 25 were injured and 70 bus- 1 Eleven of inesses were damaged or burned when violence "exploded after a. weekend demonstration against the police in a mainly Mexican-American district.

It was the third major outbreak of violence in six months in East Los Angeles, home to more than 600,000 Mexican- Americans. A sheriff's spokesman estimated property damage at $200,000. Twice, officers fired shotguns as more than 1,500 mainly young persons rampaged through the four-square-mile area. Rioters threw rocks and bricks at officers, attacked them with boards, and threw firebombs into businesses. Officers used tear gas and fought hand-to-hand.

Firemen answering alarms were stoned. At least 68 persons were ar- STATE TRAFFIC TOLL TOPEKA (AP) Kansas highway death log: For 48 hours to 9 a.m. Monday 5 For February 0 For January 47 For 1971 47 Comparable 1970 period 45 LOCAL GIRLs SCOUT leaders are Wing for the annual Girl Scout Cookie Sale. which start this Friday and continue through Saturday, February 20 Taking part in planning the drive at a recent Neighborhood Girl Scout meeting were, left to right, Mrs. H.

E. Sigg. Mrs. Keith Brown, Mrs. Duane McCammon, Mrs.

Robert Larzalere, Mrs. Joe Ketcher, Mrs. Leslie. Meredith, Mrs. Veda Root and Mrs.

Charles Vineyard. Mrs. Nellie Rose, Neighborhood Cookie. Chairmaji, offered advice on the drive. rested, mostly for investigation a district's business section and surrounded a' patrol" car.

Offi- the injured were cere said the car's occupants sheriff's deputies. I fled on foot, arid deputies arri'v- Many of the injured civilians ing at the scene fired at demon- were hospitalized for shotgun strators with shotguns when wounds. The outbursts Sunday began after 5,000 persons chanted antipolice slogans such as "Death to Ihe pigs" at a park rally. Part of the crowd marched to a nearby sheriff's station and threw rocks at the building and patrol cars. The crowd moved on to the Drug abuse program set for schools TOPEKA Robert W.

Manske, a Yates Center attorney, has been named area chairman for a Kansas Bar Association Young Lawyers Section sponsored program to educate young people on the medical and legal dangers of drugs. Manske will coordinate drug abuse programs in junior and senior hjgh schools in Woodson, Allen, doffey, Anderson, Osage and Franklin counties, Larry R. Mears, Atchison attorney and state chairman, announced. The Kansas Young Lawyers drug abuse project is part of the nationwide effort being conducted by the American Bar Association's Young Lawyers Section to reach students with the facts and all the possible consequences connected with the illegal use of drugs. Manske will select young lawyers to direct the drug program on the county level.

These county -will contact schools and secure doctors and lawyers to actually conduct the three-part program. During one session, a doctor describes the potential medical consequences of the various types of drugs to the students. A movie on the second session, while the final program features a lawyer explaining drug abuse violations and their consequences. Truman improving KANSAS CITY President Harry S. Truman, now in His 12th day in the hospital, continues to be listed in good condition.

The latest bulletin issued Sunr day said the 86-year-old Truman took a stroll in the third floor corridor early in the day. He was hospitalized with an intestinal ilouston Ihe li crew, us- a fla-hrght and rad'oed do- it-yourscl' ic -u successl -'day to he cause of a malfunction that threateiiS to wipp out their landing on the i moonscape of Fra Mau- rn. Alan H. ihepard n.i- 'nr'-h of American Edgar D. Khcll Stuart.

A. Roosa deliberate- ly tried for more than an hour 1 'ivike a l'nk'ng mechanism to work--as it had when hey attempted to dock their command slrp with the lunar lander earlier. "It works," Roosa said finally. "Just real fine." The apparatus -4 be a for its ni use, Shepard and Mitchell would ie- turn from the lunar surface to Ink again with the commaik! hio piloted by Roosa. "We will have to convime ourselves that the is satisfactory for dock- said Sigurd Sjoberg, direc- 'i or of -flight- operations.

As! whether the astronauts through with Friday's attempt on the moon's craggy highlands, Sjoberg said, 'I'd 'ke not to speculate on that ri tht now." The astrmnu's worked (hp lntohes by hand on instructions Irom Houston without a single failure. exhausted oar imagination for right now on troubleshooting the probe," said Mission Control. "We'll worry about it some more overnight and be back with you in the morning." There was no argument from the who. bees, awake for more than 19 hours by that time arid in the spacecraft for 16 of those. No threat to their safety was involved.

Experts who had watthed their efforts via television studied the problem during the crew's 10 hours sleep time. Unlike Apollo 13, which was endangered by an explosion, this was a frustrating Sjoberg said if the landing could not be made, the astronauts would attempt an alternate mission of orbiting the moon. The trouble confronted the astronauts three hours after launch Sunday when they turned their command ship for docking. On previous flights the maneuver was routine. The mother ship would edge forward from its stack, turn around, and hook onto the lunar lander nose-to- nose.

Then the command ship can pull the moonship out of the on tine, tn re L- docking rmairiatehes they charged the officers. Similar rallies called to protest alleged police mistreatment in Mexican American areas ended in violence last August, when three persons were killed, and September. Demonstrators said looting occurred because the storekeepers are "ratones" and "lad- for rats and high prices for cheaply made goods. A sheriff's spokesman said the dead man's neck and throat were ripped out by a shotgun blast. He was identified only as a Mexican-American between 20 and 25 years old.

A curfew to dawn was ordered at about 8 p.m. for the disturbed spent third stage of the Saturn 5 area. rocket. rer than a cigarette and not to lock into i I five move-up, back-. the sixth, using JI rths- procedure, the unce past that hurdle, the astronauts were able to pull tho ublesome mechanism inside found some small scratch on the polished face of the cone-shaped docking drogue into which the probe fits.

They were ade, Shepard said, by the latrhas ori the probe. Houston radioed tests and the mechanism passed each one i It was something a toothache that disappears in the dentist chair. crawled into the tun- ru -med by the joining of the Todays picture Temperature High Saturday 57 High Sunday 28 Low Saturday night '15 Low Sunday 19 High a year ago today Low a year ago today. $6 Precipitation 48 hours ending 8 a. tn.

This month to date Normal for this month Total this year, to date since Jan. LOCAL OUTLOOK cloudmew continued cold through day; wind becoming Hgflt. southweasterly tonight; low tonight near 15; high Tuesday 30-35. KANSAS Cloudy tonight, chance of scattered light snow or snow flurries; Tuesday, cloudy with scittetfed light snow; warmer high lower 30s east and KANSAS extended outlook Wednesday through Chance of ram or motor beginning Wednesday or Wednesday night ending extreme Wednesday night and overstate Thursday; low around 20 rioifth- west to mid 20s southeast; warming to 20s northwest 30s southeast Thursday morning cooling to teens northwest mid 20s southeast Friday; 40s except low 50s extreme south Thursday and Friday. Chairmen pose roadblock revenue-sharing plan to WASHINGTON (AP) The growing controversy over federal revenue sharing is likely to demonstrate, more clearly than any other recent issue, the extent to which Congress' power is the power of its ana of the chairmen.

President Nixon's proposal to steer $5 billion in federal funds to the states, without strings, al crats with long service, and all but one are from the South. But they vary considerably in their methods and the degree of influence they exert on their committees. All enjoy much built-in leverage, notably on the scheduling of legislative hearings. Mills, for example, already has said there will be no revenue-sharing ready has brought him to an hearings until late this year. cye-to-eye confrontation with ont of the strongest, Wilbur D.

Mills, chairman of the House Ways and Means Committee. And the companion proposal for $11 billion in only generally restricted block grants was received with chilly skepticism by Chairman George H. Mahon, D- whose House Appropriations Committee has the major say on "spending. Except under extraordinary circumstances, no legislation gets to the floor of either chamber until it has been worked over and approved by a committee. The House committees likely to scrutinize portions of the Nixon he spells out the details and sends up legislation Ways and Means; Appropriations; Banking, which handles housing legislation; Education and Labor; Commerce; Judiciary, and Agriculture.

The chairmen of all these are products of the seniority sys tern. Accordingly, all are Demo- The Arkansas tax expert is an acknowledged master of getting i legislation blocking legislation he doesn't like. He says frankly he will not bring out a bill he knows the, House will not pass. He has almost never been proved wrong part because he does not hesitate to change his own position, as he did in the case of medicare, when he detects an overwhelming trend in the House. Mills takes care of his colleagues, Republican as well as Democratic, on secondary bills in which they have an interest.

Such consideration and the fact most Ways and Means members are generally conservative, as he is, helps him keep a handy working majority. Like Mills, Mahon presides over a committee composed mostly of fiscal conservatives, as he is. Appropriations, "with 55 members, is the biggest committee in Congress. It does most of its work through subcommit lees, whose chairmen are pow ers in their own Mahon names them. He works -harmoniously with the ranking Republican, Frank T.

Bow of Ohio. When time romes to defend their product on the floor, committeemen from both sides of the aisle; generally unite. The House seldojn makes major changes in. an appropriation bill, despite frequent efforts by liberals to boost the figures for social programs and by conservatives to cut them. Continued on Page 1 Wilbur Mills.