Decatur Daily Democrat, Volume 61, Number 47, Decatur, Adams County, 25 February 1963 — Page 1

Vol. LIX No. 47.

Kennedy Asks End To Fight Over Tax Cut

By ALVIN SPIVAK United Press International WASHINGTON (UPI) — President Kennedy emphasized today that he would accept a tax cut of $lO billion or larger from Congress this year without tax reform in order to avoid a recession. * ■■■■ The chief executive delivered a prepared address to a symposium on economic growth sponsored by the American Bankers Association, and then participated in a question and answer session during which he emphasized his desire for tax reduction affecting calendar lIC3. Only a week ago, Democratic congressional leaders said the administration planned to continue its efforts for the over - all tax reduction - and - reform package. This involved a gross tax reduction of $13.5 billion with about $34 billion being returned to the government through reform measures to tighten loopholes and correct inequities. Kennedy told the bankers today that “quite obviously” he did not want his reform rcommendations to delay the tax reduition so much that it might not be sufficiently effective this year. Would Rewrite Package “If we cannot get reform, obviously we are going to have to rewrite the padcage,” die President said. “If Congress were to come up with a $lO billion cut, we would then have to adjust all the rates.” The President said that from his viewpoint a cut of less than $lO billion this year might be preferable. But at the same time he said he would prefer to “err on the side of a large enough tax reduction” and thus would accept a $lO billion reduction without the reform provisions if it became necessary. In the formal speech, the President said there was. “nothing deeply wrong with our economy,” but that the nation “must release the brake of excessive taxation which has been holding back demand and momentum. . . .” He called for an end to “squabbles over who will benefit most” from the proposed reductions. ChaHenge to Critics He challenged critics of his program to come forward with a solution of their own and not concentrate entirely on “partisan .. . exasperated ... rash talk” about swollen federal payrolls, a higher deficit and “a crushing debt burden." ' _ He said he was “not predicting a recession for 1963.” But he said that if no tax cut is enacted this year, he would be willing to make this prediction: too distant future, be struck by its fifth post-war recession, with a heavy loss of jobs and profits, a record-breaking budget deficit, and an increased burden of national debt.” Mentions No Names The President mentioned no names in asserting that “tax reduction will not be passed if each economic group continues to treat (economic) growth as a melon to be divided instead of a crop to be harvested—or if each group examines this crop through the wrong end of a telescope.” “The facts of the matter are, of course, that the reduction is fairly distributed through all income

Cold Wave Warning Issued For State

By Hutted Press International A traditional Feb. 23-25 snowstorm hit Indiana for the fourth consecutive year but the deep accumulations were confined to the northern third of the state. Snow was 11 inches deep at South Bend this morning, 8 inches at Lafayette, and 7 inches at Fort Wayne as a result of a weekend fall which continued this morning. The depth trailed off to two inches at Indianapolis, and only a trace along the Ohio River. Traffic clogging snowstorms hit tile state during a similar period in 1960, 1961 and 1962. Upstate, the snow was expected to continue through the day with new accumulations of 2 to 4 inches likely. On tbs heels of the snow, the northern third was expected to shiver in a new cold wave sending the temperature tumbling to around zero by Tuesday morning. Elsewhere, the snow was scheduled to end this morning, with much colder weather developing tonight and sending the mercury spinning to near 5 above central

DECATUR DAILY DEMOCRAT

“The country will, in the not brackets,” Kennedy said. “And I would hope that all groups would put the national interest first, and recognize that the prospects for tax reduction and economic growth must not be endangered by squabbles over who will benefit most. For it is the nation that will benefit most from the passage of this program—and the nation that will suffer if they defeat it.” Criticism of Kennedy’s program has ranged from the AFL-CIO which wants a quicker tax cut than he has recommended, to business groups which want its benefits allotted differently. The bankers association and other organizations—as well as a number of key lawmakers—have warned against cutting taxes without reducing federal expenditures. Program Not Perfect “I do not say that it is a perfect program, which cannot be changed by the Congress, which will satisfy the desires of all groups, or which will achieve all the growth we need as fast as we wish to achieve it,” Kennedy said. “But those who admit the problem, but oppose the proposed so- , lution of a $lO billion top-to-bot-tom tax revision, are under some obligation to put forward a solution of their own.” He insisted that the nation’s economic growth “will be stepped up only by lightening the repressive weight of war-time tax rates which put a damper on private purchasing power and profits.” “But it will not be stepped up by political slogans or homely analogies,” Kennedy said. Kennedy said no nation in history had experienced a century of economic growth comparable to that of the United States in the last 100 years. But he warned that if Congress rejects his proposals there not only will be a recession but there also will be these consequences: —“Tax revenues will continue year-in-year-out to be insufficient to balance the budget, no matter how tightly the administration and Congress control expenditures.” —"Unemployment and unused business capacity will remain at or above their present high levels, creating a lack of investor confidence at home and a lack of confidence in the dollar abroad. —“Pressures for a 35-hour week, for restrictions on imports and automation, and for large •quickie’ tax cuts and sharply increased federal spending will all grow beyond manageable limits.” —"This nation’s rate of economic growth will not* match over the next 10 years the record of most other industrial powers or our own record in this country.” Set Os Predictions Kennedy made a contrasting set of predictions— "and pledges” —if his tax reduction program is enacted this year. He said his program “will in a short time result in increased tax revenues — and a substantial portion of that increase will be used each year to reduce the deficit until the budget is once again balanced.*’ "Any increases in the federal debt resulting from these transi(Continued on Page Eight)

and 5 to 15 above south. Temperatures crested Sunday between 22 at Lafayette and 35 at Evansville. Overnight lows this morning ranged from 10 above at Fort Wayne to 30 at Evansville. Highs today will range from the 20s north and central to the 40s southwest, and highs Tuesday from near 15 to the mid 20s. Skies will clear in the north tonight as the cold wave bores into the state, but Tuesday will be partly cloudy throughout Indiana. The outlook for Wednesday was mostly fair and continued cold. The five-day outlook called for temperatures averaging 9 to 15 degrees below normal with the greatest departure south and central. Upstate it will moderate about Tuesday or Thursday and turn colder about Friday or Saturday. Elsewhere, there will be only minor day-to-day changes. Precipitation this week will average about one-tenth of an inch north and up to four-tenths of an inch elsewhere as occasional periods of light snow.

Conviction Os 187 Negroes Is Reversed WASHINGTON (UPI) — The Supreme Court, by an 8-1 vote, declared unconstitutional today the breach of peace conviction of 187 Negro students who held an anti - segregation demonstration on the grounds of South Carolina’s Capitol. The court held that the convictions violated constitutional guarantees of free speech and assembly. The demonstration took place at Columbia, S.C., on March 2, 1961. In other actions today the Supreme Court: —Ordered further lower court proceedings in the case of Leon Bearden who was convicted with his son of hijacking a Continental Airlines plane over New Mexico in 1961. The sth Circuit Court of Appeals was instructed to take further action in the case of Bearden who was sentenced to life imprisonment. —Granted a hearing to Harold Fahy who was sentenced to 60 days in jail by a Norwalk, Conn., court of painting swastikas on a synagogue on Feb. 1, 1960. In their appeal to the Supreme Court, the Negro students had argued the convictions were not supported by the evidence and constituted a denial of free speech. Justice Potter Stewart, speaking for the majority, said: “These (students) were convicted of an offense so generalized as to be, in the words of the South Carolina Supreme Court, hot susceptible of exact definition.’ And they were convicted upon evidence which showed no more than that the opinions which they were peaceabley expressing were sufficiently opposed to the views bf the majority of the community to attract a crowd and necessitate police protection.” The Negroes had been permitted to demonstrate for a half hour or so but were arrested when they refused to disperse at that time. They broke into singing, clapping and shouting and blocked the sidewalks, according to arresting officers. The demonstrators were convicted in Magistrate’s Court in Columbia. They received fines ranging from $lO to SIOO and jail terms of from 5 to 30 days. In many cases, half the SIOO fine was suspended. Associate Justice Tom C. Clark dissented. Clark said the students had a right to “peaceable assembly, to espouse their cause and to petition, but “the manner in which they exercised those rights was by no means the passive demonstration which this court relates.” Death Toll Edges Upward From Flu By United Press International The death toll edged upward today in the outbreak of flu that has hit 21 states. Thousands lay ill from seme sort of respiratory ailments. Asian flu was isolated in 11 states. Health officials in New York City have reported that during the first seven weeks of 1963, a total of 818 New Yorkers have died from either pneumonia or influenza. This represents aoout 300 more victims than normally would die during a corresponding period in an average year. The Health Department said there was no accurate way to distinguish between the victims of the two diseases. The latest death figures in other states include West Virginia 5, Kentucky 3, Indiana, Michigan and Florida, 1 each, and in Johnson City, Kan., several elderly patients in a rest home. Hospitals in many cities curtailed visits to patients in an effort to halt the spread of germs. "Send a card or write a note,” hospital officials pleaded.

DECATUR TEMPERATURES Local weather data for the 48 hour period ending at 11 a.m. today. Saturday Suaday I'2 noon 22 12 midnight .. 32 1 p.m. 34 1 a.m. 32 ,2 p.m 80 2 a.m. 32 3 p.m 27 3 a.m. — 33 4 p.m. 26 , 4 a.m 30 5 p.m 26 5 a.m. ——. 28 6 p.m 26 6 a.m- 26 7 p.m 27 7 a.m 25 8 p.m. 38 8 a.m. 25 9 p.m 30 9 a.m 28 10 p.m 30 10 a.m. 30 11 p.m 31 11 a.m 31 Suaday Monday 12 noon 30 12 midnight .. 20 1 p.m 30 1 a.m 21 2 p.m 30 2 a.m 21 3 p.m. v — 29 3 a.m— 22 4 p.m,*. 28 4 a.m 23 *5 p.m. 5... 26 ’5 a.m 24 < p.m?,... 24 6 a.m 24 7 p.m 24 7 a.m. 24 8 p.m. 22 8 a.m— 26 9 p»m 31 9 a.m 26 10 p/ta 20 10 a.m. —— 28 11‘ 20 T1 a.m 29 Prectnitatiea Total for the 48 hour period ending at 7 a.m. today, .056 inches. The St. Mary’s river was at 2.20 feet.

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Monday, February 25, 1963.

Gov. Welsh Comes Out In i Favor Os Net Income Tax Replacing Gross Income

EARTHQUAKE’S DAMAGE —Aerial photo shows some of the damage caused by the earthquake that struck the town resort of Barce, Libya.

New Drive Planned To Negotiate Ban

GENEVA (UPl)—Chief U.S. disarmament negotiator William C. Foster, just back from consultations with President Kennedy, planned a new drive today to get the Russians to negotiate on a nuclear test ban. Fosta: would not say whether he brought new strategy from his four days in Washington, but he said on his return Sunday “I am back to attempt to continue efforts to obtain a nuclear test ban treaty.” He said he hoped to persuade the Russians to reopen earnest bargaining on the nuclear issue. The Russians have dodged the issue since the 17-nation disartfia-* ment conference resumed two weeks ago. Closen-Door Testimony (In Washington the joint SenateHouse Atomic Energy Committee called for testimony behind closed doors today from the Arms Control and Disarmament Agency on the nuclear test ban talks. (Foster is director of the agency. (Informed sources in Washington said the closed hearing was called because of increased opposition in congressional circles to any further concessions by the United States to achieve a nuclear test ban.) During Foster’s absence, First Deputy Foreign Minister Vassili K. Kuznetsov, the chief Soviet negotiator, left suddenly for Moscow without explanation. Some diplomats termed bis departure .a snub to Foster. West’ Lowers Demands In an attempt to get the talks going, the West again has lowered its demands for on-site inspections to police a test ban. The United States and Britain said they would insist on only seven annual inspections on each nuclear country’s territory if the Russians meet other key terms for making a test ban cheat-proof. The Russians, who put a limit of three on inspections, insisted before today’s session that they INDIANA WEATHER Cold wave warning. Turning colder this afternoon with cold wave tonight. Temperature falling to zero to 5 below north by morning, 5 to 10 above south. Fair tonight and Tuesday. Continued cold Tuesday with highs 8 to 15 above. Sunset today 6:32 P.m, Sunrise Tuesday 7:23 a.m. Outlook for Wednesday: Fair and continued cold. Lows 2 below to 12 above. Highs 15 to 25. THREE SECTIONS

had not been told officially of the Anglo-American offer to lower the number to seven. Until the latest offer, the West had insisted on 8 to 10 annual on-site inspections. Fire Ruins Home At Pleasant Mills The interior of the home of Mr. and Mrs. William Nichols in Pleasant Mills was gutted by a Saturday evening fire, and with the exception of some clothes, all the family’s possessions were destroyed in the blaze. The family, which includes four daughters, were enroute to Decatur to a laundromat to wash some clothes and the fire broke out while they were gone. Only things saved were the few’ clothes they were taking to be washed. Mrs. Wanda Olberg, executive secretary of the local chapter of the American Red Cross, sent out today a plea for clothes for the family, and other items that the Nichols family might be able to use. Decatur fire chief Cedric Fisher said this morning that the fire broke out in the cellar of the Nichols home, and quickly spread throughout the house. Inside Gutted The Decatur department received the call at 8:45 p.m. and was at the scene until 11:20 o’clock Saturday night. The Monroe and Willshire fire departments were also called in to help battle the blaze. The entire inside of the home was destroyed, although much of the building itself was saved from burning to the groundAccording to Mrs. Oeffierg, Nichols is between 45 and 50 years of age, is 5-10 in height and weighs 165 pounds, with a 44 inch waist and a 36 inch length in pants. Mrs. Nichols is 5-4 and weighs 120 pounds. Need Clothes, etc The Nichols’ four daughters are 7, 10, 11, and 14 years of age. Anyone wishing to donate some clothes or other items is requested to contact Mrs. Oelberg at the Red Cross office on E. Madison street. Anything will be appreciated. Hal Teeter conducted the Red Cross investigation. The home and belongings were only partially covered by insurance. Nichols is currently employed by the Adams county Farm Bureau Co-op elevator in Pleasant Mills.

INDIANAPOLIS (UPl)—Governor Welsh came out today in favor of a net income and corporate net income tax to replace the 30-year-old gross income tax which he said has “accumulated a large number of barnacles.” Welsh ended months of silence over how to finance a $1 billion phis state budget for the next two years by endorsing the plan previously recommended by minority Democrats in the legslature. He said he acted in an effort to prevent a stalemate of the major issue. The net income tax would be graduated with higher rates for earners of the largest incomes and with credits for a wage earner’s dependents. The corporation tax would be levied on business profits. Sen. Marshall F. Kizer, Democratic minority leader considered to be the author of the tax plan Welsh endorsed, said the chief executive was “badgered” into taking a stand by failure Os the Republican majority to agree on a tax plan. Welsh's surprise announcement sent GOP lawmakers into House and Senate caucuses to discuss what to do next. Sen. D. Russell Bontrager of Elkhart, Senate GOP leader, said Welsh’s “support of the Kizer pet gouge-everybody tax plan proves” that the governor has “decided to come out publicly in support of Kizer for governor in 1964.” House Republicans after a caucus said through caucus chairman Charles Edwards they still opposed a net income tax but since WfeTSh "exercised his constitutional duty" to propose a taxing method the caucus had instructed the Ways and Means Committee to hold a public hearing Tuesday night on the Democratic net income tax bill. But Edwards said it was “too little, too late” and the tax would raise SIOO million less than the amount needed to meet the proposed budget as it now stands. Furthermore, he said, there was no indication a net income tax law would not be challenged in the court, leaving the state with no means of revenue. In answer to a question, Edwards said it was “just possible” he might be the one who might challenge the tax in the courts. Until a news conference this morning, Welsh steadfastly had refused to make any recommendation or even to hint a tax program to state legislators now in the final two weeks of their 61-day biennial session. Lawmakers are faced with the virtual necessity of approving a two-year spending program many millions of dollars higher than the present biennium, and if they do they must increase present taxes or create new ones, or both. Welsh took his stand after holding conferences with Democratic and Republican leaders of Senate and House daily for the last three days in an effort to iron out the budget-tax problem. The net income tax was endorsed previously by House and 1 Senate minority members. The governor and both parties have tried to steer clear of taking the initiative in tax increase proposals in fear of voter reaction. Welsh also proposed creation, of a corporate net income tax “to close the glaring loophole in our state tax structure” and “to collect from the businesses of Indiana making a profit here.” Welsh reminded newsmen that 46 days of the 61-day session already have passed. Cites GOP Disagreement “There appears to be no concensus among the Republican majority,” he said. “The tax program proposed by the Republicans in the House has been criticized by the GOP senators. In contrast, the Democratic members (Continued on Page Six) Mrs. William Burdg Is Taken By Death Mrs. William (Mabel) Burdg, of Marion, a former Decatur resident, died Sunday at the Calvert nursing home in Marion, following a long illness. Two stepdaughters survive. Her deceased husband was a brother of Dick Burdg, of Decatur, and Miss Merle Burdg of Portland. Funeral services will be held at 10 a. m. Tuesday at the Dick funeral home in Marion, with burial in that city.

Jacob Heimann Dies From Heart Attack SBhb 4 Jacob C. Heimann Jacob C. Heimann, 75, prominent lifelong resident of Adams county, died at 9:30 o’clock this morning at the Adams county memorial hospital; shortly after being admitted after suffering a heart attack at his home on Decatur route 4. Bom in Adams county May 1, MSI, taa was a son of Joseph and Mary Braun-Heimann, and was married to Frances Miller Oct. 20, 1915. Mr. Heimann was a retired farmer and an employe of the Fairway restaurant. He was a member of St. Mary’s Catholic church, the Knights of Columbus and the Holy Name society. Surviving are his wife; three sons, Charles, Jerome and Fred Heimann, all of Decatur; seven daughters, Miss Helen Heimann, at home, Mrs. Walter (Kathleen) Baker and Mrs. Gerald (Irene) Grove, both of Decatur, Mrs. Arthur (Joan) Wilder of Woodburn, Mrs. Louis (Margaret) Savieo of Monroeville, Mrs. William (Mary) Lichtle and Mrs. Rita Gerber, both of Decatur; 33 grandchildren; five brothers, "John, Henry, Joseph and Herman Heimann, all of Decatur, and Bro. Fred Heimann, C.PP.S., Carthagena, 0., and five sisters, Sr. M. Ligurius, CSC, South Bend, Mrs. Edith Kissel of South Bend, Mrs. Leo Lengerich, Mrs. Louis Rumschlag and Mrs. Herman Geimer, all of Decatur. One daughter, Mrs. Justine Miller, is deceased. The body was removed to the Gillig ■> & Doan funeral home, where friends may call after 7 p. m. Tuesday. Funeral arrangements have not been completed.

Reopen Bomber Controversy

WASHINGTON (UPI) — The House Armed Services Committee reopened the RS7O bomber controversy today by voting to authorize the Air Force an extra $363 hillion to build two more of the planes. President Kennedy has said repeatedly he does not want the authorization and the 31-5 vote set the stage for another congressional battle with the administration. The House committee also added two nuclear powered attack submarines which the administration does not want. Defense Secretary Robert S. McNamara maintains any more money spent on the proposed RS7O would be wasted and President Kennedy has backed him up. The actions boosted Kennedy’s arms authorization bill — already the largest ever introduced in Congress—to $15,856,391,000. This was $497,700,000 more than Ken-

SEVEN CEN

Grover T. Ray Dies In Florida Hospital Grover T. Ray, 70, a native of Adams county, died at midnight last night at a hospital in St. Petersburg, Fla., following an extended illness. 'He was born and reared in Adams county, a son of Jesse A. and Lucretia Smith-Ray. Surviving are his wife, Vina; one daughter, Mrs. Jack R. Ray of St. Peterburg; three sons, Major Earl Ray of Savannah, Ga., Duane Ray of Spokane, Wash., and Marvin Ray of Rossburg, O.; his stepmother, Mrs. Edith Ray of Decatur; one brother, Burman C. Ray of Ypsilanti, Mich.; three half brothers, Gerald A., Oscar T. and Junior F. Ray, all of Decatur; a half sister, Mrs. Paul Erp of near Monroe, and seven grandchildren. Funeral services and burial will | be held in St. Petersburg Wednes- | day. Officers Installed By 6. E. Union Officers of Local 924 UE, bargaining unfiß for employes of the Decatur General Electric plant, were formally installed at a recent membership meeting of the union. Vernon B. Hebble was installed as president. Other installed officers are: Waldo R. Eckrote, vice president; G. Frederick Dellinger, recording secretary; Robert V. Kenworthy, financial secretary; Raymond Franz, Lawrence Schroeder and Virginia Raudenbush executive board; Maggie White, Kenneth W. Nyffeler and Richard Schafer, trustees; Gerald Ross, sergeant at arms; Vernon Hebble, Waldo Eckrote, G. Frederick Dellinger, Robert Kenworthy, Melvin Wheeler, negotiating committee with Rich- ' ard Niebur, international representative; Vernon Hebble and Melvin Wheeler, delegates; G. Fred- . erick Dellinger, Edward Deitsch, Robert Kenworthy, and Waldo j Eckrote, alternate delegates. Joe Turkowski. international representative from the New York office, installed the officers, and ■ also told of the union proposals which will be presented to the 1 company for negotiations. The present contract with the company expires Sept. 29 of this year. Boiler Explosion Damages School CLARKSVILLE, Ind. (UPI) —A boiler explosion caused an estimated $30,000 damage Sunday at ClarksvUle High School. Supt. Vance Collins said. He said classes would be canceled today.

nedy requested last month and would also increase the over-all $53.7 billion defense budget by that amount. Chairman Carl Vonson, D-Ga., said in a statement afterwards that,.it was “a deep and abiding belief of the Armed Services Committee that manned systems should continue to be a major part of our military force.” “There is no doubt,” he said, “that our missiles, and particularly our intercontinental ballistic missiles, are a major part of our arsenal. Neither I nor the committee members would for a moment think of minimizing their importance of cutting back on the missile program. “But the committee sees a growing tendency on the part of the Department of Defense to place more and more emphasis on missiles and less on manned