The South Bend Tribune from South Bend, Indiana • 1

jrnr' r4MWHI i tf '41 iJ I I I I1 jS 1 i 7 -e-J WN 1 'Lj iJ 1 Hall of Fhaio; on first yearypf eligiblltyC1 11 kc Mil TUESDAY JANUARY 10, 1989 1989 South Bend Tribune Corp. 1 16th yearNo. 305 LOCALLY OWNED SINCE 1872 MSTOO EDtTIOtl35 CENTS pTrri 1,1111 iniiq. Demos dismiss Reagan budget Bayh calls on Hoosier hysteria X. 1 ') Indiana Gov.

jEvarrBayh takes the oath of office Monday as new first lady Susan Bayh holds the Bible at the inauguration ceremony. Indiana Court of Appeals Judge Robert H. Staton, left, administers the oath. Keman as new era starts Mayor sees South Bend gains 'u 1 ir I -of hopeful sweatshirt as a gift for Bayh. Ive been coming here since 1933, Pajakowski said.

This is the biggest crowd Ive ever seen. An estimated to 3,000 were on hand to witness the inaugural ceremony. The crowd fillqjj the rotunda area on the main floor of the Statehouse and spilled onto the balcony one story above. Many of the first-floor guests had to be content with watching the proceedings on a closed circuit television broadcast They were rewarded by being able to hear what was said over loudspeakers. Many of those within viewing distance of the platform could not hear the proceedings because of poor acoustics in the century-old Statehouse.

Among those who spoke during the inaugural ceremonies was former U.S. Sen. Birch Bayh, father of the new governor. In the public arena, the greatest gift one can give to another is trust, the elder Bayh observed. Noting his son has been given the trust of the people of Indiana, Bayh urged his son to cherish that trust, because, Its more valuable than diamonds and gold.

Wearing a vibrant red dress, Evan Bayhs wife, Susan, sat next to him on the platform, holding his hand. At one point, she put her head On his shoulder and moved closer in a joyous embrace. Its a great moment for Indiana, said state Rep. B. Patrick Bauer, D-South Bend.

Its a breath of fresh air. Bayh, 33, is the youngest governor in the nation and the first of i i Tribunt Photo Barbara allison who served as deputy secretary of state under Bayh. Hogsett left the secretary of states office to become Bayhs campaign manager. Also 33, Hogsett cited the ex- SmKEANAN Page A9 lifDEX AREA NEWSB1-B3 BUSINESS CLASSIFIEDS1T-11 9 coMicsAa CROSSWORDtS EDITORIALA7-A8 ENTERTAINMENTCS LIVING TOOAYAS MISHAWAKA BS OBITUARIES SPORTSC1-C3 TELEVISION C8 WEATHER PARTLY CLOUDY Complete' forecastB14 Related stories on Page A3 By ALAN FRAM Associated Ptm Writer WASHINGTON The Democratic chairmen of budget-writing congressional committees said today that President Reagans farewell, fl.15 trillion spending plan, is a dead letter and that Presidentelect Bush must submit a substitute reflecting his more moderate policies. This Reagan budget is a continuation of what weve seen for the past eight years increased spending in defense, cuts in domestic spending and a lot of red ink.

And George Bush needs to reverse that trend, said Sen. James Sasser, chairman of the Senate Budget Committee. Joining Sasser on NBC-TVs Today show, House Budget Committee Chairman Leon Panetta, added: These kind of budgets have been overwhelmingly rejected by Republicans and Democrats on Capitol HilL So if (Bush) wants a budget that not only goes someplace on Capitol Hill but also reflects some new priorities for this country, then hes got to change the budget that was presented yesterday. Sasser said Bush must cut defense spending in favor of restoring funds for domestic programs that were slashed under Reagan. The presidents fiscal 1990 budget submitted just 11 days before he retires, would produce a deficit of 392.5 billion, within the 3100 billion target mandated by the Gramm-Rudman deficit-reduction law.

If achieved, that figure would be a dramatic decrease from the worst of the Reagan era shortfalls, but drastically higher than the red ink run up by any previous president. Besides challenging the spending blueprints priorities, the Democrats criticized what they called its Se BUDGET Pag A9 Reagan: Healthy economy my doing By DAVID SKIDMORE Associated Prase Writer WASHINGTON President Reagan, in his final report on the state of the economy, took credit today for an unparalleled period of peacetime prosperity and said a tax increase could undermine his legacy. Reagans eighth and final economic report says that the stagflation high inflation coupled with slow growth of the 1970s has given way during his tenure to the longest economic expansion since the 1960s and the lowest unemployment rate in 14 years. Today, it is as if the world were born anew, the president said in a nine-page introduction to this years report, prepared by his Council of Economic Advisers. By reducing taxes and regulatory bureaucracy, we have unleashed the creative genius of ordinary Americans and ushered in an unparalleled period of peacetime prosperity, he said.

Although the report credited the administration with favorable economic developments, it sought to minimize the importance of the U.S. budget and trade deficits and it placed the blame for the worst year for bank and savings institution failures elsewhere. Also, Democrats point out that Reagans military buildup had the effect of running the economy on a wartime footing. His deficit spending, they say, had the effect of creating prosperity now at the expense of future generations, who will have to pay the bill Beryl W. Sprinkel, the presidents chief economic adviser, said the new report was aimed at placing the Reagan record in the con- 8m ECONOMY PsgeA9 By DOUG RICHARDSON Associated Press Writer kJNDIANAPOLIS Gov.

Evan ayhg6tsdown to work today af-1 ter spehduig his first day In office exhorting Hoosiers to form a new generation of pioneers, shaking thousands of hands and watching a basketball game. The new governor formaliy took office Monday as the third youngest leader in the states 172-year history and the first Democrat to hold the office in two decades. Bayh, the 33-year-old son of former Sen. Birch E. Bayh, also became the youngest sitting governor in the nation as he took his oath in a Statehouse filled with a crowd estimated at more than 3,000.

After the ceremony, Bayh greeted well-wishers for about two hours in his new office, attended a private dinner for family and friends at the Governors Residence and went to the Indiana-Purdue college basketball game at West Lafayette. In his inaugural address, Bayh implored Hoosiers to build on their proud heritage. To all Hoosiers from every walk of life, I ask you to join with me this day, a new generation of pioneers, exploring the challenges that await us beyond the Hoosier horizon, Bayh said in his seven-minute inaugural address. The new governor, a fifth-generation Hoosier, said the transition of power signaled a new birth of hope for Indianas future and a reaffirmation of pride in our great Hoosier past. The states goals should be providing children with the very best instruction and learning available in the land and making sure products labeled made in Indiana set a standard of excellence to which all the world may aspire, said Bayh.

To meet those goals, Bayh promised a government that serves the people, not itself" and called for bipartisan cooperation. Democrats exhilarated by regaining power should understand that our duty is not to our party alone, but to the ideas and ideals for which we stand, said Bayh. The 57-minute inaugural ceremony was presided over by U.S. Rep. Lee H.

Hamilton, a Democrat who is Indianas senior member of Congress. The ceremony actually marked a re-enactment of Bayhs oath; he first took the oath shortly after midnight Sunday. Retiring two-term Republican Robert D. Orr also attended the ceremony as did former Democratic Gov. Matthew E.

Welsh. Roger D. Branigin, the states last Democratic governor who served from 1965 to 1969, died in 1975. Two-term GOP LL Gov. John M.

Mutz, who lost to Bayh in the 1988 election, did not attend the inaugural. Although the younger Bayh was the spotlight, the warmest reception of the day was given to his father, the 60-year-old former hree-term senator who twice ran unsuccessfully for the Democratic presidential nomination. Its a privilege for me to give See BAYH Page A9 1 Inspectors: By ROBERT BARR Associated Press Writer- KEGWtJRTH, England Investigators said today they found fire damage in one of the engines of a Boeing 737 that crashed in central England and that the other engine had been inexplicably shut off before the crash. Eddie the Transport Departments chief engineering inspector at the crash scene, told reporters that while the left engine showed fire damage, the right engine showed no sign of having been on fire and was in a zero-thnist or shut-down condition. He said the engine appeared to i By JAMES WENSITS Tribuna Start Writer INDIANAPOLIS Mayor Joseph E.

Keman predicted Monday the inauguration of Democratic Gov. Evan Bayh will be good for South Bend. I hope this isnt a once-in-a-life-time thing, said Keman as he watched the inaugural preliminaries from his Statehouse vantage point Not since 1963, when Frank Bruggner was mayor and Matthew Welsh Indianas governor, has a Democrat occupied both positions. Were not expecting something for nothing, said Keman, who, like Bayh, is a Democrat. Im excited about the prospects, said Keman, adding that the presence of a Democrat in the governors chair will provide the foundation for opportunity.

Keman also relished the prospects of being on the same political side as the governor. It will be nice to be able to walk in through the front door and have personal relationships with the administration in Indianapolis, Keman said 4 Certainly, the relationships weve had in South Bend with Indianapolis have been generally good, he added. I think we can take that a couple of notches higher. Keman and wife, Maggie, headed a large contingent of South Bend Democrats invited to attend Bayhs inauguration. The contingent included former St.

Joseph jCQimty Democratic Party Chairinah Pa-jakowski, who-toblf iloiig a Notre Dame national, championship A 1 engine have been turned off at a previous point in the flight, rather than, in the before the plane crashed into a highway embankment while trying to make an emergen landing at nearby East Midlands' Airport Trimble refused to speculate on whether pilot error was to blame for shutting down the engine. At this stage in 'the investigation, all possibilities are open in that regard, he said. Investigators are listening to the flight recorders and will be able to question the seven crew members, including the pilot and co-pilot The British Midland Airways jet Gov. Bayh and his father, former U.S. Sen.

Birch Bayh, embrace in an emotional moment at the Statehouse inaugural ceremony. his party to head the state since former Gov. Roger Branigin, who served from 19654969. Taking their oaths of office along with Bayh Monday Wore LL Gov. Frank L.

OBannon, D-Cory-don, and Secretary of State Joseph H. Hogsett, a Rushville Democrat burned, 2nd shut off crashed into an embankment beside Englands main north-south highway Sunday night killing 44 people. It was flying from Londons Heathrow Airport to Belfast when the pilot reported engine trouble. The left engine has fire damage, Trimble said. The fire damage is consistent with witness reports of fire associated with the left engine in flight- We have no evidence at the moment of a mechanical failure in the right engine.

Transport Secretary Paul Chan-non repeated Trimbles findings to Parliament and said investigators now concentrating on information about the engines, from the flight data and cockpit voice recorders, both of which were recovered. 5- Investigators rummaged on hands and knees looking for debris that might yield more dues. Theories advanced by experts included contaminated fuel, a rupture in a combustion chamber, improper servicing or a mechanical fault allegedly missed during tests of the engine. Cbannon said Monday than was no evidence of sabotage, but Prime Minister Margaret Thatcher said we rule out nothing we simply CRASH Peg At i .1 -T.