Decatur Daily Democrat, Volume 59, Number 33, Decatur, Adams County, 9 February 1961 — Page 1

Vol. LIX. No. 33.

Kennedy Asks Congress To Safeguard Health Os Nation, Cradle To Grave

House Passes Higher Budget

INDIANAPOLIS (UPD — The Democratic-controlled Indiana Senate today passed and sent to the House on a strict party line vote of 26-24 a bill to require thousands of Hoosier employers to withhold gross income taxes from their employes’ pay. The bill reduces from four to one the number of employes an employer must have before itis necessary for him to withhold the state taxes. It also requires employers to make monthly deposits of the withheld taxes. ‘ Passage came shortly after the Republican-controlled House beat the Democrats to a political punc and added Sl6 million for education to the biennial state budget during a marathon one-day session Wednesday that closed with almost unanimous approval of a $1,173,000,000 spending program. Republicans, led by Sens. Kenneth Brown of Muncie and Ruel Steele of Bedford, fought the withholding bill on grounds it was “wholly unnecessary,” would add to burdens of businessmen and was “another encroachment of government into business.” But Sen. Eugene Bainbridge. DMunster. said it would bring in $9 million in additional revenue every two years. The bill incorporated suggestions by Goernor Welsh in his Jan. 16 budget message among adjustments needed to expand the state’s income to meet a record budget. By requiring monthly deposits. Welsh said it would i avoid losses to the state due to bankruptcies and business suspensions. The two* budget bills go to the. Senate today, expanded by sl2 million extra for state support to schools and $4 million to universities and colleges. The sum which was added represented the minimum which Governor Welsh and Democratic leaders of the legislature had said was needed. Welsh and House minority leader Birch Bayh, D-Terre Haute, praised the GOP for agreeing with the Democrats on the budget, but chided the Republicans for not also backing a major revenue-producing plan to balance the extra allotment. Would Cut Surplus Bayh charged the House-ap-

Virginia Hard Hit By Sudden Storm

By United Press International C A sudden snowstorm which buried Virginia under a foot and a half of snow headed east over the Atlantic Ocean today leaving scattered light snow and drizzle in its wakd. The storm boiled out of the Carolinas and pasted a thick blanket of wet snow from the Virginias to Maryland and Pennsylvania before moving out to sea. New York City, still trying to get rid of last week’s 17.85 inch fall, escaped the new storm. But Washington caught a combination of rain, sleet and snow which sent government workers home early forthe third time in three weeks Wednesday and brought the total amount of snow on the ground to 10 inches. The town of Front Royal, Va., declared a state of emergency after 16 inches ’had fallen and it was still coming down. Winchester, Va., and Somerset, Pa., got 15 inches; Gettysburg and Johnstown, Pa., 12 inches, and Pittsburgh 6 inches. An abandoned theater at Johnstown collapsed under the weight of wet snow. Schools were closed and roads

DECATUR DAILY DEMOCRAT

proved budget would reduce the state's general fund surplus to sl2 million dollars by mid-1963 as compared to an’ estimated surplus next July 1 of $42 million. Welsh said “it is as wrong to fail to meet the state's educational responsibilities as it is wrong to make appropriations that would mandate the state to strip itself to the brink of financial disaster.” But chairman John F. Coppes, R-Nappanee, of the House Ways and Means Committee contended the state surplus "will not go below S3O million ” Coppes cited two Welsh-backed bills now in the Senate to justify his belief that the additional sl6 million would be offset by new revenqe. He pointed out that a proposed change in the present distribution of school aid from twice to four times a year is estimated to free sl2 to $lB million for spending purposes and a bill calling for revenue stamps on real estate transfers would add $4 million. Welsh has a couple other strings in his revenue-producing bow that the GOP will not buy, however. These are a tax on gross income from interstate sales of Indianabased firms and lowering the individual gross income exemption from SI,OOO to S6OO, which would cost each taxpayer $6 more a year. — Amendments Offered A total of 61 amendments were offered during the daylong review of the budget in the House, but the only ones that survived were those which had been agreed on in a GOP caucus. Coppes, who presented most of them, grew hoarse as he explained why the majority party favored each reduction or addition. In addition to the sl2 million added to bring the state distribution to schools up to $244,126,000 for the biennium, and the $4,100.200 added to Purdue. Indiana University. Ball State and Indiana State Teachers colleges, the major changes involved: Addition of 50 state police troopers; added investigators for the intangible tax department; 10 new employes for the attorney general’s office; $21,800 more for the Indiana Securities Commission (Continued on page eight)

blocked throughout the Virginias, North Carolina, Maryland and Pennsylvania. Virginia counted three stormrelated deaths and North Carolina one. It was the sixth wintry storm to pound the East Coast this season. A jet plane with 97 persons aboard skidded into a snowbank at Baltimore after the pilot decided the runway was too icy for takeoff. It also was too icy to stop. Rain was falling along the Pacific Coast from Canada to northern California while snow pelted the northern and central Rocky Mountains and parts of the Southwest. Heavy fog moved inland during the night and enveloped the Dakotas and southwest Minnesota. The rest of the country was dry. At Iron Mountain on Michigan’s usually snowy Upper Peninsula firemen had to fight four grass fires Wednesday. The temperature was a springlike 45 degrees, and Iron Mountain residents had measured only 6% inches of snow all winter instead of the normal 65 inches.

Decatur’s Twin Dollar Days - - Friday and Saturday

WASHINGTON (UPI) — President Kennedy asked Congress today to safeguard the health of Americans from childhood to old age through a vast program topped by Social Security financing of hospital and nursing care for persons over 65. The controversial plan highlighted a special message in which Kennedy also proposed federal scholarships to increase the supply of doctors and dentists; grants to bolster community nursing and hospital services; aid to medical and dental schools; action to improve the health of children and youth, and stepped-up medical research. Administration officials said the proposal on health care for the aged — certain to touch off a big congressional battle — would cover 14.2 million persons past their 65th birthday as of Jan. 1, 1963. These officials said it would cost sl.l billion in its first year of full operation, and would mean a $1.5 billion a year increase in Social Security payroll taxes. Cost to Individuals Kennedy insisted “this program is not a program of socialized medicine.” Anyone with any earnings under Social Security would have to pay higher taxes to finance the program. So would employers. The firstt stage of the two-step tax increase, effective Jan. 1, 1962, would hit only those earning more than $4,800 a year. For that year, the existing $4,800 limit of earnings which can be taxed under Social Security would be raised to $5,000. This would cost every employe earning as much as $5,000 an additional $6 a year and self-employed persons at that level $9 a year extra. The second tax increase, effective Jan. 1, 1963, would be applied to everyone covered by Social Security. An extra one fourth of 1 per cent tax would be levied on earnings up to $5,000. This would mean tax boosts of up to $12.50 a year for employes and $18.75 for self-employed. “It is a program of prepayment of health costs with absolute freedom of choice guaranteed.” he said. “Every person will choose his own doctor and hospital.” The program is a modified version of one which Congress refused to enact last year, approving instead a program of federalstate health care grants for needy old people not on relief. The AFLCIO backs the Social Security approach and the American Medical Association is a prime opponent. “The health of our nation is a key to its future,” Kennedy said. “It is to the unfinished business in health — which affects every person and tome and community in this land — that we must now direct our best efforts.” Denied Security The President said “there remains a significant gap that denies to all but those with the highest incomes a full measure of security — the high cost of illhealth in old age.” For persons of 65 years and older, the President said the Social Security system should provide: —“lnpatient hospital services upto 90 days in a single spell of illness, for all posts in excess of $lO per day for the first nine days (with a minimum of S2O) and full .costs for the remaining 81 days. . .” —“Skilled nursing home services up to 180 days immediately after discharge from a hospital... An individual could, in short, receive two days of skilled nursing home care in place of one day of hospital care when this satisfies his requirements.” Officials said there would be a limit of 150 units on this, with each day in a hospital or two days in a nursing home counting as one unit. , —“Hospital outpatient clinic diagnostic services for all costs in excess of $20.” —“Community . visiting nurse services, and related home health services, for a limited period of time.. .(to) enable many older people to receive proper health care in their own homes."

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Thursday, February 9, 1961.

The proposed benefits would be lower than were offered in the bill co-sponsored by Kennedy and Sen. Clinton P. Anderson, D-N.M., which failed to pass the Senate last year. But the age minimum would be 65 instead of 68, as in that bill. Would Affect Millions Kennedy asked Congress to make the insurance benefits available to the 13.7 million persons over 65 who are eligible for Social Security benefits and the 500,000 in the same age group who are eligible for railroad retirement benefits. The plan would go into effect on a limited basis — without the nursing provisions — on July I, 1962. The financing would be through a one-quarter of one per cent increase in Social Security taxes on both employers and employes, effective in 1963. The maximum earnings that could be taxed would rise from $4,800 to $5,000 in 1962, providing an initial revenue increase of S4OO million for that year. Authorities said the remainder of Kennedy’s program, to be financed from general revenues, would add at least $56 million to appropriation requests in fiscal 1962 and $177 million in fiscal 1963, Local Lady's Sister Is Taken By Death Mrs. Susie Peake, 69, lifelong Allen county resident, died Wednesday morning at Richmond. Surviving are a son, Charles Peake of Detroit, Mich.; a daughter, Mrs. Paul Mobley' of Fort Benning, Ga.; two stepsons, Davie Peake of Fort Wayne, and Clyde Peake of Liberal, Kan.; two sisters. Mrs. Almira Taylor, Fort Wayne, and Mrs. Harold Messick of Decatur; three brothers, Alfred and James Johnston of Yoder, and Ralph Johnston of Ossian route 1, and eight grandchildren. Funeral services will be held at 1 p. m. Friday at the Elzey funeral home in Ossian, with burial in Uniontown cemetery. Friends may call at the funeral home until time of the services. BULLETIN WASHINGTON (UPD—Atty. Gen. Robert F. Kennedy announced today that the government will file damage suits “within two months” against the electrical firms sentenced earlier this week for price fixing and rigging contracts.

25 Centers Added To Depressed List

WASHINGTON (UPD—The Labor Department today added 25 major industrial centers to its list of areas with “substantial” unemployment. * It said 76 of the nation’s 150 leading production centers now are on the list of areas with joblessness of 6 per cent or more of the labor force. A top government official said the nation’s job picture has never been worse since the early days of World War 11. The Small Business Administration ordered an immediate speedup in its efforts to assist firms in areas of heavy unemployment. At the same time, President Kennedy assigned Secretary of Labor Arthur J. Goldberg to make a five-state tour, starting Friday, to study the impact of the recession. It will be the first of a series of trips by Goldberg to areas where unemployment is regarded as a critical problem. He will visit Chicago and Gary and South Bend, Ind., Friday, go

Union Twp. Ready For Fund Campaign Union township is ready for the coming Red Cross rural fund drive, and hopes to go well over last year’s figure of $213.70, Mr. and Mrs. Erwin Fuelling, township co-chairman, announced today. A total of 23 section workers have already been appointed, and kits are new being distributed. While the campaign officially starts March 1, many will get it over with earlier. Local Help Only Only local people will take part in the solicitation, and each will have an official canvasser’s kit. “We in Union township know that 210.000 persons were trained in home nursing last year through the Red Cross, partly because our drive here was successful. We are determined that it will be successful again this year,” Fuelling said. Section Chairmen Union township section chairmen are: Section 3, Eugene Schlemmer; 4, William G. Teeple; 5, Mrs. Ivan Barkley; 6, Mrs. Dan Lehrman; 7, Mrs. Ben Gerke; 8, Eugene Miller; 9, Mrs. Arthur Bieschoff; 10, Robert Plumley; Section 15, Mrs. Edgar Thieme; 16. R. M. Bleeke; 17, William Bleeke; 18, Robert Boerger; 19, Lorenz Thieme: 20. Mrs. Herman Bleeke; 21, Simon Bleeke; 22, Ernest Thieme. Real Benefits Section 27. Mrs. Louis Krueckeberg; 28, Richard Marbaugh; 29, Alfred Grote; 30, Wilbert Thieme; 31, Mrs. Lawrence Williamson; 32. Mrs. Joseph P. Heimann; 33, Mrs. Richard Geimer. “These workers are real public servants,” Fuelling declared, “in that they are giving freely of their own time and efforts to help further a program that benefits all Americans. When the Red Cross performs a service next year, they can be proud that they, too, helped make it possible.” INDIANA WEATHER Partly cloudy tonight and Friday. A little colder north Friday, a little warmer south Friday. Low tonight in the 20s. High Friday 35 to 40 north, 40 to 46 south. Sunset today 6:14 p. m. Sunrise Friday 7:44 a. m. Outlook for Saturday: Fair to partly cloudy. Lows 15 to 25. Highs in the 30s.

to Lansing, Mich., Detroit and Columbus, Ohio, Saturday and visit Pittsburgh Sunday. The Labor Department said unemployment increased sharply in virtually all of the nation’s industrial centers in the early winter. The over-all rise in joblessness in the 150 main production areas totaled about 50 per cent, the department said. It classified the following classified areas in the list of “substantial” unemployment: Philadelphia, Cleveland, Baltimore, Los Angeles-Long Beach, St. Louis, Peoria. HL, Kansas City, Akron, Ohio: Allentown-Bethlehem-Easton, Pa., Asheville, N.C.; Corpus Christi, Tex.; Flint, Mich.; Grand Rapids, Mich.; Knoxville, Tenn.; Louisville; Mobile, Ala. Also Newark and New Bruns-wick-Perthamboy, N.J., Portland. Ore., Savannah, Ga.: Tacoma, Wash.; Toledo; Trenton, N.J.; Worcester, Mass., and York, Pa.

Major Cities Ready Damage Suits On Firms By United Press International Four major U.S. cities today were readying damage suits against electrical equipment manufacturers convicted of price fixing. City officials in New York, Chicago, Los Angeles and San Francisco said they would file damage suits with the amount involved still to be determined. However, oqe estimate of the Chicago claim was in excess of $5 million. Los Angeles said its claim would “run into millions.” A United Press International survey indicated the following cities are studying possible legal action: Kansas City, Mo.; Kansas City, Kan.; Pittsburgh; Denver; Portland, Ore.; Milwaukee, Wis.; Salt Lake City; Madison, Wis., and Birmingham, Ala. A spokesman in Columbus, Ohio, said that city has no plans to sue, although the city bought much equipment from the penalized firms. Federal Judge J. Cullen Ganey in Philadelphia Monday levied fines totalling nearly $2 million against 44 individuals and 29 firms for violating antitrust laws by price fixing and submitting rigged bids over a 25-year period. He also sentenced seven executives to 30-day jail terms and Wednesday rejected a plea to suspend their sentences. All of the 29 firms, including such industrial giants as General Electric, Westinghouse and AllisChalmers, pleaded guilty or no contest to the charges. Dairy Fair Trade Bill Passes Senate INDIANAPOLIS (UPD — The Indiana Senate passed 35-15 and sent to the House today a bill designed to regulate the sale of dairy products and prohibit stores from selling milk below cost as a “leader” item. The bill, a dairy products! “fair trade” measure, was almost identical to one which passed both houses of the 1959 Legislature but was pocket vetoed by then Gov. Harold W. Handley. Sen. Marshall Kizer, D-Ply-mouth, one of the bill's authors led the fight for passage. He said "if you want >the big monopolies to take over the milk business, then vote for this bill.” Sen. C. W. Martin, R-Indianapo-lis, led the fight against the measure. He said "if we set the price for milk, we must do so for all products. This bill goes a long way toward the destruction of free enterprise." The hjjj creates a State Dairy Products Board of seven members appointed by the governor and establishes penalties for persons violating the law by selling dairy products at below cost. Cancer Fund Party At Elks Feb. 18 The 14th annual cancer fund party sponsored by the Decatur Elks lodge will be held at the lodge home on North Second street Saturday night, Feb. 18. This party has for years attracted a huge crowd to the Elks home, and all proceeds from the party are sent to the Indiana Elks association, which distributes funds received from lodges throughout the state to colleges in the state for work on cancer research. Last year, the Elks sent $1,396.30 to the state association from profits received from the annual fund party. Expenses for this party are kept to a minimum, with donations from members and business firms of the city aiding to contributing to the fund and expenses kept to a minimum. The cancer fund party will open at 7:30 p.m. Feb. 18, with special entertainment. It will be followed by a number of special awards and dancing until 1 a.m., with music by Ray Giant and his orchestra. Admission price is wily $1 per person, and the public is invited to attend, as this will be open house night at the Elks. Tickets may be obtained from any member of the fraternal organization or at the Elks club room. All members of the lodge, under supervision of James Newton, exalted ruler, are working on various committees planning for the annual big party. ,

■ > Kx ■ ■ W jdhs. *S WMBBWWPMMW|WBI V'wPßh ._. w |mb f Ip”® ll|B■ I£?m ’ jK IK|; » a Ilk 9 f Ma •, *&■ lu>"w < hl WH? B£S ffISK SPY CASE—Britain’s biggest espionage case since that of atomic spy Klaus Fuchs is under way in London. Three men and two women are charged with selling vital defense secrets to a “foreign power” and operating a direct radio link to Moscow. Henry Houghton, 55, left, one of the defendants, is a civilian employe at Britain’s Portland submarine base. Another on trial is Gordon Lonsdale, a businessman alleged to be a Russian master spy.

GOP Takes No Stand On Reapportion

INDIANAPOLIS (UPD—Majority Republicans in the Indiana House agreed- in caucus today to take no stand on reapportionment and let each member vote his or his constituents’ consciences. The caucus was held a day before a House joint resolution on the issue comes up for second reading Friday. The resolution would amend the Constitution to base reapportionment on a modified “federal plan” calling for the use of census figures in realigning the House but leaving the Senate on a district basis as at present. - Rep. Ralph Waltz, GOP caucus chairman and co-author with Rep. Charles Kirk, D-New Albany, of the resolution, said the caucus took no position but left each Republican free to vete as he wishes. Waltz predicted “something will be done” on reapportionment. Bills providing for the nonpartisan election of judges faced a dim future. The three bills, introduced by Sens. Robert Brokenburr, R-Indi-anapolis, and Marshall Kizer, DPlymouth, came up on second reading in the Senate Wednesday and immediately ran into a wall of opposition from lawmakers on both sides of the aisle. The first bill, providing for the non-partisan election of Indiana Supreme Court judges, was accepted on second reading with no vocal opposition. Minutes later. Kizer called down a second bill which would provide for non-partisan election of Appellate Court judges. The opposition forces then went into action, led by Sen. Nelson Grills, D-Indian-a polis. Grills presented a motion to indefinitely postpone the bill. Calls Bills “Dangerous” Grills said the Kizer-Brokenburr measures were “dangerous bills which would deprive the people of their right to choose their own judges." “This will put the selection of judges directly in the hands of the lawyers.” Grills warned. Sen. John Ruckelshaus, R-Indi-anapolis, told his colleagues “for once I am in full agreement with Senator Grills.” Sen. Jack Mankin, D-Terre Haute, said “the people are smart enough to look past the party label” when voting for a judge. He said the counties he represents are heavily Democratic, “but the people chose to elect Republican judges.” Mankin said passage of the three bills “would put the selection of judges in the hands of the large law firms and vested interests.” Sen. Ruel Steele, R-Bedford, said “less than one per cent of the people even know the candidates for judge and- I can’t see how these bills would improve the matter except to throw the selection of judges into the hands of special interest groups who have an ax to grind.” Grills’ motion to indefinitely postpone action on the Appellate Court judge bill carried by a 26-23 margin, with the bulk of the Democrats for the motion and the majority of the Republicans against. Foes Recall Bill Flushed with victory, opponents of the bills then made a motion to recall the non-partisan Supreme Court judge bill which previously passed and have it indefinitely

Seven Cents

postponed. That brought Sen. S. Hugh Dillin, D-Petersburg, Senate president pro tern, to his feet. Dillin, who voted with the minority as the Grills motion carried, warned that a “dangerous precedent” was set when a bill was attacked on second reading. “I don’t know why in the middle of a quiet afternoon we should get blood-thirsty over this bill," Dillin said. “We don’t want to start a precedent of attacking bills on second reading. I wonder where that would end. Anyone cf you might be in the hall tomorrow when your bill comes up for a routine second reading and then ‘boom’, it’s dead before you realize it.” Grille retorted that “the sooner these bills are killed the better. This is the time to do it.” The motion to recall and indefinitely postpone the Supreme Court bill, a motion made by Sen. James Spurgeon, D-Brownstown, failed on a 21-27 vote when several Democrats heeded Dillin’s advice. Postpone Action Kizer and Brokenburr decided not to call on second reading the final bill in the package which provides for non-partisan election of county judges on a local option basis. The three bills previously came out of Kizer's Judiciary “A" Committee without recommendation. Unless Kizer or Brokenburr can muster additional support, they appear headed for certain defeat. The same three bills were introduced by Kizer during the' 1959 session and they failed to get out (Continued on page eight) BULLETIN Stephen Schuller, 14-year-old son of Mr. and Mrs. George Schuller, of Hoagland, died at 12:20 p. m. today at the Adams county memorial hospital after an extended illness. He was a junior in the Hoagland high school. The body was removed to the Zwick funeral home. Advertising Index Advertiser Page Arnold Lumber Co., Inc. .... 7, 8 Adams Theater —- 3 Beavers Oil Service, Inc. 5 Bower Jewelry Store 3 Burk Elevator Co. 5 Budget Loans _....— T -, 7 Boardman’s Sewing Machine Shop 3 Evans Sales & Service- 5 Frist State Bank of Decatur — 8 Allen Fleming 5 Goodin’s IGA Market 4 Holthouse Furniture Store . 2,3, 4,7, 8 Habegger Hardware —7 Hammond Fruit Market, Inc. .. 8 The Little Elevator Cos Moose Lodge -7 Model Hatchery —-—. 5 Resinking Garage 8c Service .... 7 Smith Drug Co. —2, 3, 8 Schwartz Ford Co., Inc. — 5 Sheets Furniture 8 Stewarts Bakery 8 Stucky & Co. ... 5 Sonotone of Eastern Indiana .. 4 James K. Staley. Service Officer? Teople Truck lines —-8 Western Auto Store 4 Walt’s Standard Service• Zurcher’s Mobfl Service 8 V.F.W. Ladies Auxiliary —1