The Bangor Daily News from Bangor, Maine • 2

-4- --pEai A SJNGTON A r- Ilf VOL NO 149 BANCOR MAINE MONDAY NOVEMBER 22 1982 36 30 CENTS $200 billion deficit feared i by economist Reagan official concedes magnitude of financial woes ii It) i 11315 jii tS 44 til i 'MUlttu cii' 'V Asked about deficit estimates for fiscal 1984 which begins next Oct 1 Feldstein said "It will be somewhere between $150 and $200 billion if there are not significant actions by Congress and the administration" "Those numbers reflect what would happen if there were not significant actions to bring down spending and shrink the size of the deficit" be added "What has to be done is to slow the growth of spending bring down some of our spending programs He would not say specifically where nvings should be made noting that Biose decisions have yet to be made by the president The budget deficit has been growing at an unprecedented rate In the last few years nearly doubling from $58 billion in fiscal 1981 to a record $111 billion in fiscal 1982 which ended in September The deficit for the current fiscal year 1983 is expected to set a new record at between $150 billion and $170 billion According to administration sources Reagan has ordered his budget office to md approximately $30 billion in non-defense spending cuts for 1984 Many pf his advisers and congressional leaders are pressing (or tax increases and cuts in the president's record defense spending plan in addition to domestic cuts to reduce the red ink So far however Reagan is resisting those calls In (act the president is giving serious thought to a proposal to move up See ECONOMIST on Cage 3 WASHINGTON (AP) President Reagan's chief economist conceded on Sunday that the federal budget deficit could swell up to $200 billion in fiscal 1984 "if there are not significant actions" by the government to curb spending Although administration officials have hinted privately in recent weeks that the deficit could soar to new World economy In grave peril says financial adviser Page 15 heights the red ink estimate acknowledged by Martin Feldstein represented the first time a senior administration official has conceded the magnitude of the problem in public Feldstein who is chairman of President Council of Economic Advisers was Interviewd on "Meet the Press" The White House economist also said that despite "serious problems" still besetting the economy "the foundations are really there for an economic recovery I think the economy is now ready to recover" Feldstein however was unwilling to predict when the long-overdue upturn would become evident and he expressed little hope for significant prog-' ress on the unemployment front The jobless rate now at a 42-year high of 10 4 percent will hover around 9 percent" next year even assuming a moderate recovery he said (NEWS Photo by Corroll Hall) Stephen King opens the new gates to his bat-guarded Victorian home Bat-crowned fence handmade Demos propose tax on benefits By Divld Bright NEWS Maine Editor Terry Steel works ith iron A blacksmith originally from the Washington area Steel operates Steel Forge in the western Maine town of Bridgton But his biggest project to date is now going up in Bangor It a wrought Iron fence 270 feet long being installed at the West Broadway home of Stephen and Tabltha King Steel says Mrs King first approached him about the fence a couple of years ago after seeing his work In the Bridgton area where the Kings used to have a summer home "We arrived at a design together" Steel says of the work which features pickets and scroll work along with some Steve King-inspired details wanted the bats" Steel says of the two iron animals flying above the posts on the main gate The gates also feature a spiderweb motif For the most part however the fence consists of tradttionalpickets and scroll work "It goes with the Steel says of the King's towering Victorian home The fence totals 270 feet In length running 200 feet across the front of the house and 30 and 40 feet along the sideyard and driveway Along the sideyard It mates to a hurricane fence the Kings Installed several years ago Installation of the fence actually started last year with the pouring of four-foot deep cement footings every 10 feet Steel says when his crew came in to do that work they found granite block footings for an old fence buried about a foot under the ground Steel estimates Installation of the fence will take about a month but that's nothing compared to how long It took him to make It "It took over a year and a the blacksmith says "It was all done with a hammer and anvil The scroll work and the pickets were all pounded out by hand" He estimates he has about a solid year of labor in the project With Its joinery techniques Steel says the fence Is not exactly a prefabricated affair 1 His crew now working at the King household consists of four blacksmiths who are doing much of the final fitting on the site "We have tools gas a portable forge with us" he said "we've just about got a complete fabrication shop on wheels" When the fence Is complete he says its weight will be measured In tons Steel says as best he can learn there are about a dozen people like him in the country doing work'1 as he calls It The vast majority of the wrought iron work done now is machine fabricated heays His work consists of balconies and other archl-tectual embellishments which once were out of favor but now seem to be catching on again Other major projects In the works he says are the restoration of an 84-foot balcony In Portland as well as work In Massachusetts and Maryland Steel has been working out of Bridgton for four years "I'd been summering here for about 10 he said summer 1 decided not to go back" 1 WASHINGTON (AP) The rescue plan advanced by liberal Democrats on the Social Security reform panel includes the notion that eventually benefits would no longer be tax-free the plan's architect says Robert Ball a former conyms-sioner of Social Security emphasized in an interview with the Associated Press on Friday that a tax on Social Security benefits would have to be phased in over several decades and would not be levied on people now retired or about to retire But Ball said that if workers are allowed a new income tax deduction or credit for the amount they pay to Social Security "the other side of that is when you retire for people who had that favorable treatment you would begin to tax the Several blue-ribbon groups have proposed in recent years that retirees pay income tax on the half of their benefits that stemmed from payroll taxes Employers and employees each pay a tax of 67 percent Ball who was Social Security commissioner from 1962 to 1973 also has long advocated the payment of income taxes on employer contributions He was a member of the 1979 Advisory Council on Social Security that made such a recommendation but the House promptly repudiated it in a 396-0 vote Politicians in both parties have often promised that they would never vote for a tax on benefits and President Reagan has said he opposes the notion But with the retirement fund facing a possible shortfall of $150 billion to $200 billion between now and 1990 Democrats are signaling on several fronts that taxing benefits is one of the areas in which they are willing to compromise Rep Dan Rostenkowski ID the chairman of the House Ways and Means Committee said in a letter to all members of the new Congress on Nov 12 that Congress should at least consider "excise taxes and taxing cash benefits" to make up part of Social shortfall Rostenkowski who Is not on the 15-member National Commission on Social Security Reform also promised to bring a "balanced" reform bill onto the floor of the House by late March The commission adjourned Nov 13 after a three-day meeting without reaching agreement on any rescue plan It may try again at its final scheduled meetmg Dec 10 but only If President Reagan and House Speaker Thomas O'Neill can agree in advance to a compromise See DEMOCRA TS on Page 3 Fans unforgiving as NFL returns Vh hiatus they show up Attendance around the NFL was down Sunday and many fans who did come questioned why Game results and highlights on Page 24 cotted the first said Mike Hanley a 28-year-old offshore oil worker Nonetheless he filled a $16 seat at the New Orleans Superdome where the Saints played the Kansas City Chiefs Attendance at that game in the Superdome was 39341 compared with an average of 55000 a game there last season It was as bad or worse elsewhere In Atlanta there were only 39686 in the 60000-seat stadium for the game between the Falcons and the Los An- geles Rams Before the game scalpers patrolled the parking lots with fists of $13 tickets offering them for as little as $2 In Cleveland there were 55000 tickets sold before the game for the 80000-seat Municipal Stadium but the weather was rainy a factor in gate sales In New York there were 13402 no-shows in 60472-seat Shea Stadium for the game between the Jets and the Colts in Milwaukee 44681 showed up at County Stadium Associated Press Dick Winn of Pottstown Pa walked out of the game in Philadelphia between the Eagles and the Atlanta Falcons In the third quarter Sunday "U's not that they're losing It's how they're losing" he said "They wanted 55 percent of the gross They're A lot of fans around the National Football League did Winn one better on the first day after the eight-week strike Many fans thought they were the big losers in the 57-day players strike that ended last Tuesday night of the fans 'if should have boy- Hearing set on dam application Official: Soviets ready to consider 25 reduction in strategic arsenal By Herb Cleaves NEWS Machias Bureau EAST MACHIAS The potential of the East Machias River to produce electricity a resource untapped since 1951 will be weighed against the potential of the river to produce a viable Atlantic salmon fishery when the Maine Department of Environmental Protection holds a public hearing at 630 Tuesday Nov 30 at Machias The hearing at the University of Maine at Machias is to consider an application by the Washington County Hydro Development Associates of Portland to rebuild a dam and powerhouse owned by the town of East Machias The complex once was used by Bangor Hydro-Electric Co to produce electricity for Washington County consumers After the East Machias dam was breached 10 years ago the river became one of the major centers of Atlantic salmon sport fishery Sport fishermen are expected to speak against the redevelopment proposal at the hearing On Dec 18 1972 a heavy rainfall caused a premature breakup of tee in Lake which flows Into the East Machias River The floating ice jammed against the dam which was still closed and created flood conditions near the town center Three flood gates on the dam normally operable were frozen and immovable and stop logs placed at the mouth of the old penstock could not be removed to release the Ice and water Only by jacking up a seldom-used emergency gate at the dam were workers able to relieve the overflow of See HEARING on Page 22 Korniyenko said the United States and the Soviet Union are facing a common enemy "the danger of a nuclear that "threatens to destroy human "All of us whether we read the Bible or the works of Marx and Lenin must do our best to avert this threat and bring it to naught" he said Korniyenko said reduction of nuclear stockpiles is essential to better relations between the two countries and newly elected Central Committee Yuri Andropov has pledged to continue development of Soviet-Amerlcan relations "It was on the basis of equality that our countries did so many good things in developing relations various spheres including commercial and economic ones during the 70s" he said of special importance was the fact that the first steps were made toward curbing the arms race averting the nuclear threat and preventing war" Korniyenko said NEW YORK (UPI The Soviet Union is ready to consider reducing its strategic arsenal by 25 percent it was reported Sunday are ready to consider a 25 percent reduction of the arsenals" Georgi Komiyenko said in an article written for Newsweek magazine Korniyenko is first deputy foreign minister of the Soviet Union and a member of the Communist Central Committee have wasted time during which we could have made progress and we are prepared to start making that progress said Korniyenko who played a key role in the SALT II negotiations The terms of the SALT II treaty called on both the United States and the Soviet Union to cut strategic weapons by 10 percent The treaty was tabled by the US Senate at the request of former President Jimmy Carter after the Soviets invaded Afghanistan fcrnyg Mow 0401 010001 i Cloudy chance of fains highs near 50 Detail on Pegs 34 -w T- -fc Reagan to ask funds for dense -Federal agents cracking down on gun ciodA sou MX missile plan Page 4 5 trafficking In Florida Page 12- Comics 35 5 Booths Funerals 29-30 4 Mihwiol -18 i i Feature Page 19 Piet pills other Inappropriate Items magazine Maine line celebrates Financial 29 sent to starving refugees Page 4 35th anniversary Page Food Poges 19 r-- koew Nws 22-23 1 I lottery Number 34 Maine Street 13 Six Imaginative readers ere winners In Speculations on the origin of Bangor's Spam i 24-28 pumpkin contest Page I nickname' Page 21 state News 21 LARGEST DAILY Downeast edition it A.