Carrol Daily Times Herald from Carroll, Iowa on August 22, 1957 · Page 1
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August 22, 1957

Carrol Daily Times Herald from Carroll, Iowa · Page 1

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Thursday, August 22, 1957
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-.J Carroll Daily Times Herald "MB- Vol. 88—No. 198 Carroll, Iowa, Thursday, August 22, 1957—Twelve Pages Delivered by Currier Boy in Carroll «JT- tingHF. if/ Keeh Evening lor 35 Cent* Per Week / T ' \* Complete Iowa Study of Indiana System- Gross Income Tax Plan Offers Simple System But Has Headaches, Report Shows DES MOINES l/B — Iowa would! get a simpler tax system than it now has if it adopted Indiana's gross income tax plan, but it wouldn't be an unmixed blessing, the Iowa Legislative Research Bureau said Thursday. The bm'eau released a study of the Indiana plan it has just completed at the.request of a group of Republican Legislators. Suggested Substitute . The gross income tax has been suggested as a possible substitute for Iowa's present sales, use and individual and corporation income! taxes. Indiana is the only state j using the gross income tax as its principal revenue measure. The study was requested by Sen. John Walker of Williams, and Reps. Clark McNeal of Belmond, Paul Walter of Union, Neil Johns of Toledo and J. F. Walter of McGregor. To Iowans forced to labor each year over the intricacies of income tax forms and to border county residents who contend the sales tax drives business into neighboring states, the simplicity of the Indiana system is appealing. Higher Rates But the bureau said Iowa would have to charge higher rates than Indiana to replace all .the revenue from the present sales, use and income levies. These taxes produced about 119 million dollars in Iowa in the fiscal year that ended last June 30. This year, since the sales tax rate has fallen back from 2 X M to 2 per cent, they are expected to bring in only 105 million dollars. The bureau estimated that at the rales charged in Indiana, the gross income tax would yield only about 70 million dollars for Iowa. The same rates produced 125 millions in Indiana in fiscal 1957 and higher rates are expected to add 43 millions this year. How It Works The Indiana plan works this way: The gross income tax is levied on the gross receipts of business firms and on gross income of individuals. There are only two rates: 0 Three-eighths of one per cent on retail sales, manufacturers' sales, dry cleaning and laundry services, and wholesale sales, including sales of farm products and sales of products consumed in production by businesses; (2) l 1 * per cent on gross income from most other sources, including wages and salaries, utility sales and contracting and service receipts, and the gross earnings of banks, insurance companies and grain handlers. $1,000 Deduction Each taxpayer is allowed to deduct $1,000 from his gross income or gross receipts. Goods produced in Indiana and sold in other states are not taxable, and goods sold by out-of-state companies to Indiana firms also are exempt unless the sale actually occurs in Indiana. The report listed characteristics of the Indiana plan, but didn't; label them as good or bad. It com-1 mented: "Whether an aspect of a tax is good or bad sometimes depends on the point of view." Aspects Listed These are some of the aspects of the gross income tax listed by the bureau's report: 1. The tax It very productive of revenue. 2. It is comparatively uncomplicated for the taxpayer. Businessmen report that the cost of compliance is very small. 3. It in flexible and because of the broa'd base a fractional change in rates may increase or decrease' collections considerably. 4. The tax Is oftentimes hidden in the price. 5. Since it Is not based on net income a business which loses money must still pay the tax. And high turnover or low markup businesses pay more tax in relation to profits than other businesses. 6. The revenue can be expected to remain very stable. 7. Personal deductions and exemptions are not permitted. 8. The tax favors home industry that sells in the national market. 9. The tax pyramids in the mar­ keting process and small busi> nesses have difficulty in passing! the tax on to their customers. 10. The tax adds regresslveneM to a tax structure—that is, income, from the tax will drop sharply during periods of business recession. The bureau said Indiana ha* found that much litigation ha» been necessary to determine vari« ous legal questions arising from the gross income tax system and that because of the difficulty of checking farmers' records, avoid* ance and evasion problems are particularly difficult in such cases. Probers Use Recording to Jog Hoffa s Memory Expect Arms Denfal Staff T ii D Is Organized Talks Recess a In Two Weeks U.S. Officials See No Agreement to End Race Between East and West At Hospital By JOHN M. HIGHTOWER j WASHINGTON UR-U.S. officials! expect the London disarmament talks to recess in about two weeks without agreement for ending the East-West arms race. President Eisenhower's new concession to Russia on suspending nuclear tests is regarded here as improving the Western positions for negotiating and propaganda. But it does not appear to have broken the basic deadlock. A White House statement Wednesday announced Western readiness to accept conditionally a two- year—instead of a 10-month—suspension of tests. This statement implied that the Soviet Union must now make concessions. No Indications There have been no indications the. Soviet Union will make any important gesture soon. On the contrary, Soviet Dele* gate Valerian Zorin told American, British, French and Canadian representatives Wednesday that if they intend seriously to end nuclear tests they must renounce the link between that issue and the Western demand for an agreement to stop production of atomic explosions for military purposes. Zorin, according to a report to the State Department, welcomed the offer for a two-year test suspension when it was formally presented by U.S. negotiator Harold Stassen with Eisenhower's personal authorization. But news dispatches from London quoted Zorin as saying the new Western proposal contains too many unacceptable conditions, Zorin did, however, promise to give the proposal careful study. Russia had proposed in mid- June that tests be suspended for two or three years and had then repeatedly attacked the Western insistence on the 10-month period. U.S. Policy. Change An Eisenhower statement described the new Western offer as a significant change in U.S. disarmament policy. The statement emphasized that any suspension of nuclear weapons tests would be agreed to by the United States and its allies only under "certain conditions and safeguards." The most important of these conditions, the statement made clear, is that the suspension should be part of an agreement for "a permanent cessation of production of fissionable materials 'for weapons purposes and installation of inspection systems to insure performance." The medical staff and governing board of St. Anthony Hospital have! approved the organization of a dental staff, Sr. M. Muriel, administrator, announced Thursday. "Since dental services are an integral part of patient care the provision for a dental staff will enable more comprehensive and specialized service to be given," Sr. Muriel said. "In initiating this expansion of health facilities through the cooperation of the medical staff, St. Anthony Hospital joins progressive hospitals in fowa and the United States who recognize the benefits which can be given to hospital patients by means of an adjunct dental staff." Dentists who will comprise the charter dental staff of St. Anthony Hospital have been meeting for purposes of organization and in the near future will complete plans for the hospital dental service which will function as a com| ponent of the surgical service. Ap- j plication for membership is made through the hospital administrator. Atomic Power j Loveless Hits Highway Brewster Gets Construct.onLanc/ Buying Procedure* Year in Jail For Contempt Former low an Sought in Indiana SIOUX RAPIDS liB-The parents of a former Sioux Rapids man said Thursday they have been notified a search is under way in Indiana for their son, missing since Tuesday night. Mr. and Mrs. Aubrey C. Smith said their son, Kenneth Smith, 39, of Monroe City, Ind., "dropped out of sight" after failing to return home from a nearby Indiana town Tuesday. The younger Smith is a mortician. The parents planned to leave for Monroe City Thursday morning. They said Kenneth, married and the father of two children, was driving a new car. He has four brothers living in Sioux Rapids and two sisters, Mrs. Lee Messenger Jr. and Mrs. Francis Miller, both of Des Moines, and a third sister in Indiana. Pocahontas Woman Killed in 2-Car Crash The Weather CARROLL FORECAST Considerable cloudiness through Friday with occasional showers or thunderstorms. High Friday about 82-85. Low Thursday night 62-64. IOWA FORECAST Considerable cloudiness through Friday with scattered showers and thunderstorms central sections Thursday night and over most of the state Friday. Continued warm, low Thursday night 60s, high Friday 80s. Further outlook—Partly cloudy and little cooler with a few thundershowers Saturday. The Weather in Carroll (Dally Temperature* Courteiy low* Public Sorvlco Company) Yesterday's high 70 YesterdayTlow ,—...63 At 7 a.m. today ——» 67 A,t 10 a.m. today „—_,—™»,.77 feather A Year Ago— Temperatures rose from 67 to 84 a year ago today. Skies continued dew; • , POCAHONTAS (A - Mrs. Lou Boyd, 67, wife of Justice of the Peace Lou Boyd of Pocahontas, was killed Thursday in a two-car accident three miles north of here on Highway 17. A car driven by Boyd collided •with the rear of another auto driven by Mrs. Teresa Tuttle, of near Pocahontas, as she was turning into a farm driveway, authorities said. Boyd was hospitalized at a Fort Dodge hospital with undetermined injuries, Mrs. Tuttle was believed | sonable to have escaped serious injury, share the cost." Bill is Signed Authorizes Preli m i n a r y Studies on Reactors to be'Built by Government WASHINGTON W» - President Eisenhower has signed an atomic energy construction bill authorizing preliminary studies on nuclear power reactors to, be built by the government. Senate Democrats had proposed a reactor construction program over administration protests. When the authorization legislation finally was passed Tuesday, it contained no provision for actual construction of the disputed reactors, but only planning authority. 'Great Improvement' In a statement issued Wednesday when he signed, the bill. Eisenhower said the measure "is a great improvement indeed over bills introduced early in the session. . . . .to build and operate a number of full-scale power reactors at a cost for construction alone of 400 million dollars of public money." About the time that statement was issued, the House passed and sent to the Senate an appropriations bill which would provide the actual funds for projects contained in the authorization bill signed by the President. Passed by voice vote in the House, the money bill allots $2,299,-718,500 to the Atomic Energy Commission, a reduction of $185.906,500 from Eisenhower's request. The AEC weapons program- making up about 80 per cent of the money in the bill—was not cut. Funds Approved These funds were approved in the House-passed appropriations bill for preliminary studies on reactor projects: Three million dollars for planning a natural uranium gas-cooled power reactor, two million dollars for planning a large-scale reactor to produce special nuclear materials, and four million dollars for preliminary work on a plutonium recycling reactor, at Hanford, Wash. Also included in the appropriations bill were funds for a program of AEC aid to cooperatives and other public power groups in obtaining atomic power. Eisenhqwer noted in his statement the authorization bill directed AEC to proceed with planning the power reactofs. He added: "While I am not opposed to such projects as studies by the commission, I wish'to make it clear I will oppose the expenditure of public money for construction and operation by the government of any large-scale power reactor, or any prototype thereof; unless private enterprise has first received rea-i opportunity to bear or j DES MOINES MV-Gov. Herschel Loveless said Thursday his own investigation shows that the State Highway Commission entered into conditional contracts for the purchase of land for the relocation of Highway 63 east of Oskaloosa several months before a public hearing was held on the route of the new highway. Bob Kisgen To Manage Liquor Store Appointment of Robert Kisgen as manager of the Iowa State Liquor store here was announced Thursday by C. J. Burris of the personnel division of the Iowa State Liquor Commission. Mr. Kisgen will assume his duties officially Tuesday, Sept. 3, Mr. Burris said. He will succeed Frank (Red) Lewis, a Republican who has held the post for many years. Mr. Kisgen is operator of K^s- gen's Cigar Store here. He was born in Boone but moved to Carroll as an infant and has made his home here since. Mr. Kisgen, a veteran of World War II, has been active in veteran and democratic political affairs. He is married and the father of two children. He is the son of the late Ted Kisgen and Mrs. Kisgen, now residing in Fort Dodge. At a meeting of the Carroll County Democratic Central committee Wednesday night in the board room at the courthouse, Leighton Wederath was named to succeed Mr, Kisgen as chairman. The meeting was called by Mr. Kisgen. Present were: Mr. Kisgen, Mr. Wederath, Mrs. Arnold Witt, James Furey, Mrs. Grace Drees, Ray Pratt of Manning, Neil Reiman of Arcadia; Adam Schaeffer of Breda. Frank Buchheit, Leonard F. Bromert, Ed Murphy and T. J. Kerwin. Dubuque Post For Sr. Raphaela Sr. Mary Raphaela, O.S.F., daughter of Mr. and Mrs. Joe Friedman of Halbur, will teach fifth grade in Holy Trinity School at Dubuque this year. She took her first vows in the Order of St. Francis of the Holy Family at Dubuque August 12. Sr. Raphaela (Lois Friedman) and her companion, Sr. Mary Iva, O.S.F., have completed a home visit with the Friedman family. Mr. and Mrs. Friedman and son, Joe, who took them to Dubuque Monday, returned the next day. The governor said he had received quite, a number of letters of complaint about the procedure during the last 60 days or so. Questions Legality He said he has a question as to the legality of such conditional purchase contracts and as to whether "the public interest is being served" by such a procedure. U. S. Highway 63 is to be relocated and rebuilt from Waterloo south to Ottumwa under present State Highway Commission plans. The route is not included in the Federal Interstate Highway System but it is hoped it may be added to the system later on. This would take action by Congress. Loveless said the complaints he has - received vary from protests about prices paid for the land to i complaints that land had been purchased for the new highway route prior to a public hearing held in Oskaloosa last May 2. The governor said his investigation indicates that although no money changed hands before the public hearing, the commission did enter into conditional purchase contracts with some landowners. He said the conditional contracts contained this clause: "Should the highway as finally located require none of the real estate described herein, this contract becomes null and void." "I am not trying to pass judgment on this procedure at all," Loveless said. "I am only trying to show what the public reaction to such a procedure is. "It occurs to me that there may be some question as to the legality of such contracts and I am not clear in my own mind whether the public interest is being served with this type of public hearing held, apparently, long after the route has been definitely decided upon." Hearing Required The governor said a public hearing on the proposed relocation of any federal aid highway is required under the Federal Aid Highway Act of 1956. But he said he was in doubt whether a public hearing held after conditional contracts to purchase land had been entered into by the Highway Commission actually was a bona fide hearing under the meaning of the law. The governor quoted one of the tetters he has received as saying: "What's the use of pretending to, hold public hearings when they | have everything agreed upon be forehand?" Teamsters Contributed to Gov. Loveless Campaign WASHINGTON (A .- The political contribution which James R. Hoffa said was made by the Teamsters Union in Iowa in 1956 went to the successful campaign in behalf of Gov. Herschel Loveless, an official of the union said in an interview. Harold Gibbons, St. Louis, secretary-treasurer of the Central States Conference of the union, told a newsman 'late Wednesday, that, as he recalled it, either $2,500 or $5,000 went into Iowa. Hoffa is chairman of the Central, States Conference. Gibbons said* he could not remember without consulting his office records the mechanics of how the money was put into the Love* loss campaign. Qlbbons-was interviewed after Hoffa had told the Senate Rackets Investigating Committee that Teamsters Union funds were used "for political campaign* in Iowa, Kansas, Michigan and Kentucky. Hoffa did not specify in his testimony which party or candidate in each slate benefitted from the Teamsters Union contributions. At the request of Sen. Goldwater (R- Ariz) Hoffa agreed to have Gib' bons prepare a complete list of state elections in which the union participated financially. This list was to be submitted later to the investigating group: In Iowa, Gov. Loveless said he knew "absolutely nothing" about such a contribution as Hoffa mentioned. He said no contribution was "mad* to me personally by them" and said that in making his cam* paign expense report hie "leaned over backward to list contributions from all individuals." Loveless added that if any contribution had been made to the Loveless for Governor Committee he would not fcuow about thai. Louis W. Drees' More to New Home Mr. and Mrs. Louis W. Drees, daughter, Dorothy, and sons, Howard and Douglas', moved Thursday from their residence at 609 North Carroll Street, into their new home, just completed at 1712 North West Street. Jack Ailts Move To Eddyville, Iowa Mr. and Mrs. Jack Ailts (Joan Jackley) and baby son, Scott Lee, have moved from Vermillion, S. D„ to Eddyville, la., where Mrs. Ailts will teach kindergarten in the public school, beginning Monday, August 26. Mr. Ailts, who attended the University of South Dakota last year, has transferred to Central College at Pella for his senior year, Mrs. Ailts, daughter of Mr. and Mrs. W. J. Jackley of Carroll, taught kindergarten at Akron, la., last year. Western Teamsters Boss Free on Bond Pending Appeal Outcome WASHINGTON W - Frank W. Brewster, Western boss of the Teamsters Union, Thursday was sentenced to a year in jail and fined $1,000 for contempt of Congress. The sentence, the maximum for contempt of Congress, was imposed by Federal District Judge John Sirica, who rejected a plea by Brewster's attorney for probation. Free on Bond Judge Sirica, however, allowed Brewster to remain free on $1,000 | bond pending the outcome of an appeal. Brewster's conviction June 26 grew out of his refusal to produce records and answer questions before the Senate Investigations Subcommittee in January. The 60-year-old labor official challenged the subcommittee's authority to investigate internal affairs of labor unions. Brewster told Judge Sirica Thursday he did not believe and still does not believe the subcommittee had authority to question him. It was because of this, he said, that he took the position that he would not produce records and answer questions. Brewster said'he had the highest regard for the courts and congressional investigation committees and that at no time did he have "in my mind and in rny heart" to stop any investigation which he felt was proceeding lawfully. Brewster, chairman of the It- state Western Conference of Teamsters and president of its Joint Council No. 28 in Seattle, subsequently produced records and testified before the Senate Rackets Investigating Committee. This, committee was set up to take over from the Investigations Subcommittee the probe into wrongdoing in the labor-management field. General Denial Brewster, whose name had been linked by other witnesses with rackets in Portland, Ore., entered a general denial before the Rackets Committee. Brewster was one of four persons indicted on contempt of Congress charges for refusing to testify before the Investigations Subcommittee. Nugent La Poma, 48, secretary- treasurer of Teamsters Local No. 174, Seattle, was convicted of contempt July 31 by Federal District Judge Henry A. Schweinhaut. He received a 30-day suspended jail sentence and a $500 fine. La Poma served notice of appeal to higher courts. Rev. Walter Wenck Rev. Wenck Starts Work I at San Diego crimen Herald Nm Service) GLIDDEN - Rev. Walter J. Wenck, a 1957 graduate of the Lutheran Theological Seminary, St. Louis, Mo., left Monday for San Diego, Calif., where he took up his duties as. pastor of the newly- organized mission established by the Lutheran Church (Missouri Synod). After he received his theological diploma and bachelor of divinity degrees early in June, the Rev. Mr. Wenck spent the summer vacation at the home of his parents, Mr. and Mrs. Walter Wenck Sr., at Glidden. Following the acceptance of his formal call, he was granted an extended vacation period to enable him to be present and officiate at. his brother's, Stanley's, marriage to Mary Ellen Carlson at Kingsley, la., August 18. The Mission Board of the Southern California District, through its executive secretary, the Rev. A. G. Webbeking, S.T.M., of Los Angeles, Calif., has informed the Rev. Mr. Wenck that his ordination rites will be officially performed in San Diego early in September. Rev. Mr. Wenck's parents plan to attend his ordination and installation which will take place in Trinity Lutheran Church, San Diego. They will also visit other relatives in California. low an, 67, Killed In Missouri Crash CHARLES CITY m - Albert Schafer, 67, retired Floyd County farmer, was killed Wednesday in a two-car collision during a rainstorm in Missouri. Schafer's son, Milton, and the son's wife, also of Charles City, were injured seriously. The younger Schaf ers'' month-old baby escaped injury but was taken to a Cameron, Mo., hospital with its parents. The four were driving to Eagle Pass; Tex., where Milton's wife planned to visit her parents. The elder -Schnfer went along to accompany his son on the return trip. All Freshmen to Meet- at H.S. Tuesday All students entering Carroll High School as freshmen this year are requested by Principal J. Howard McElhinney to meet in the high school library at 2 p.m. Tuesday for algebra aptitude tests and other .details of enrollment. Book rentals of $2.50 per student may be paid at that time. Pupil insurance for those not participating in athletics is $1 for freshmen.'New students may sign for the insurance program Tuesday afternoon if they so desire. fhe principal's office, will be open from 8 a.m. to 5 p.m. Monday .through Friday for the convenience of*any student* or parents who have questions do ask. 'LANCE PARTY' SATURDAY The 1957 Lance party of Kuemper High School will be held at 7:30 Saturday night in the . Kuemper gymnasium. The school's year book, The Lance, will be distributed at that time. All Kuemper students are invited to attend. LIONS CLUB PICNIC Members of Lions Club and their families will hold a picnic meeting in Northwest City Park at 6:30 p.m. Sunday. The picnic supper will be furnished by Bob's Grill. Ready to Let About 20 U.S. Newsmen Go to Red China By WARREN ROGERS JR. WASHINGTON UP) - The Eisenhower administration was reported ready today to announce soon that about 20 American newsmen will be permitted to go to Red China on a six-month trial basis. The announcement, expected in the next day or so, would end an eight-year blackout on eyewitness news stories written by Mnerican reporters operating on the China mainland—provided the Communists still are willing to let them in. Secretary of State Dulles has worked out a plan after polling newspaper, radio and television executives. This survey produced a list of news agencies which want to station correspondents permanently in Red China. Administration officials called it helpful. U was understood the U agen­ cies which previously had men on the China mainland told Dulles they want to send representatives back again. j These agencies included The' Associated Press, United Press, i International News Service. Co- j lumbia Broadcasting System. Na-! tional Broadcasting Co., Mutual Broadcasting System, New York ; Times, New York Herald Tribune,, Chicago Tribune, Chicago Daily I News, Christian Science Monitor : and Time magazine. j Eight or so others, not named, i requested permission to station reporters in China permanently. There was another list. It included news organizations interested in temporary correspondents. But Dulles was understood to have decided such a "one-shot" expedition would have to wait until he saw*how the others fared during the six-month trial. j>— Assured Dio of Clear Field In Taxi Drive; Teamsters Boss Had Denied He Sought to Get- Foothold in N.Y. WASHINGTON wi - The Senafe Rackets Investigating Committee Thursday heard a 1953 wire tapped telephone conversation in which Teamsters boss James R. Hoffa' assured terrorist Johnny Dio of a clear field in organizing New York taxicab drivers. Hoffa sat glumly listening to the recording. The Midwest Teamsters boss had just denied that he had sought through Dio to get- a foothold in New York. Made Legally The recording, made legally by New York police, was of a Hoffa- Dio talk on March 10, 1953. In it, Hoffa said he'd talked "to that Hickey guy." Thomas Hickey, a Teamster* vice president, was trying to organize cab drivers in a rival drive to Dio's. The conversation went this way: Hoffa: I talked to Hickey. Dio: Yeah? Hoffa*: He promised me that he would straighten that situation out; there would be no more interference at where you're having t.cab driver) elections or anything else if you'll just let him know where, where you're working and he'll.keep the out of there. ; Dib: Ahuh; all right- , '\ . Hoffa: And I.told him you would call him and tell him. Dio: Ahuh. Well, maybe it might be a good idea for Monday—for me to be there anyway. (They had talked about meeting in Chicago). Hoffa: Yeah. Dio: Monday or Tuesday, huh? Hoffa: I don't think it would hurt. Dio: All right. Hoffa: I think he definitely promised me he'd keep the h— out of it. Dio: Yeah. Well, in any-any event I'll get in touch with him tomorrow and give him a rundown just in case so they'll be no mistakes about it. Just before the recording was played, Hoffa had denied having any recollection of seeking, as suggested by Committee Counsel Robert F. Kennedy, to "knock Hickey" out of organizing cab drivers counter to Dio's organizing drive. Jogs Memory "I'm astounded at your qualifi- Hoffa See Page 10 ' Fola Booth Gets Extension Position Miss Fola Booth of Carroll will begin work as Sioux County extension home economist at Orange City Oct. 1. She is in training at Sioux City until she assumes heir nesv position. ;•' Miss Booth has taught home economics in the high school* at* Moorhead and Sanborn since her graduation from Iowa State Teach* ers College, Cedar Falls, five years ago. She is the daughter of Mrs. Will Booth and the late Mr;': Booth. Times Herald Carrier Salesmen Make Their Weekly Collections on Friday and" Saturday Prompt-Payments and Correct Ching* WUJ/i» Carrier

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