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Mason City Globe-Gazette (Newspaper) - May 11, 1961, Mason City, Iowa North Iowas Daily Newspaper Edited for Hit Homo MASON CITY GLOBEGAZETTE HOME EDITION VOL The newspaper that ma Aitoeiated fnu and United Preii International full Uaae MASON CITY IOWA kes all North lovans neighbors MAY 11 1961 o Copy Paper ConjlJtJ of Two No 1M West powers set A helping hand to tax agents Seek to cut deductions By EDWARD COWAN WASHINGTON UPI When the tax officials start talking about a possible breakdown in voluntary compliance what they really are saying is they are afraid American taxpayers may take a wholesale cheating on their income tax returns It is a prospect that makes even the toughest Treasury agent tremble For the fact is that if most of the 61 million in dividual taxpayers not to men tion the 21 million corporations and partnerships cheated on their taxes it would be impos sible for the government to catch ail or even most of them The basis of the present fed eral tax system is selfassess ment The taxpayer reports his income computes his taxes and sends the government a check for whatever amount withhold ing didnt cover or he requests a This method rests on the premise that most people are at least fairly honest If the premise collapses so does the tax system built on it SECRETARY DOUGLAS Dil lon has proposed that Congress disallow all expenses for en tertaining guests at such func tions as parties night dubs theaters country clubs and fish ing trips Also banned would be outlays for luxury entertain ment facilities such as yachts hunting lodges swimming pools and country club Business gifts would be limited to a year per recipient outoftown hotel and eating expenses to a day and business lunches JOT dinners for customers to to a day per person How would this drastic cur tailment of deductions affect voluntary tax compliance FOR ONE THING Dillon ar gtied it would close off an area which has been subjected to much abuse Even more far reaching the Treasury con tends curbing travel and enter tainment deductions would elim inate a great source of irrita tion for taxpayers who cannot claim such deductions and who resent their neighbors and busi ness colleagues who live it up on the expense account According to Internal Revenue Commissioner Mortimer M Cap lin publicity about lush expense account living may have mo tivated some taxpayers to claim travel and entertainment ex penses which they did not ac tually incur Although this is not widespread Caplin said any breakdown in voluntary compliance is viewed with ex treme concern What he meant was Its bad enough when peo pie pad their claims for ex penses But when they begin to invent them out of whole cloth things have come to a danger ous pass BY REMOVING the irritant expense account living the ad ministration wants to eliminate the inequities and the discontent which it has produced This it hopes will arrest any incipient trend towards expense account cheating by taxpayers who dont even have expense accounts According to Caplin curbing expense deductions should also remove a related clash between Internal Revenue agents and taxpayers whose re turns are challenged Often Caplin reported in a study on expense accounts the taxpayer cannot prove with receipts or checks exactly how much he spent Or if he has the receipts there is only his word to prove that the expenditure was for a business purpose In these situations the agent may feel he cannot allow in full the deduction claimed He has nothing to go on but the tax payers word and possibly some collateral evidence The taxpay er Caplin observed very fre quently adopts a defensive atti tude because he feels the agent it questioning his veracity Johnson reaches VietNam Photofax TRAFFICSTOPPING FLOOD The floodburdened Verdigris River cascad ing downstream from a breached tem traffic toward Tulsa on U S Highway 66 near Claremore Okla Fullyloaded coal cars to add extra weight were shut IIIX UU WiiObi CCULU iXUlll ct porary cofferdam at the Cologah dam tied to a railroad bridge to keep it from site 12 miles away stops westbound being carried away Governor complains of too many lobbyists by state departments FROM OUR WIRE SERVICES jn a 1U Des Moines liquor store our own bills since we are all DES Norman but he actually represented the in the same family but appar Erbe charged Thursday that M employe of the Iowa State Liqj uor Commission was transferred from the Waverly store to Des Moines to work as a lobbyist during the recent general as sembly session Erbe said the transfer was made ostensibly for the pur pose of having the employe work ently this isnt true Erbe said The governor said he did not jfavor on state agencies mainbelieve lobbying was bad but taining their own lobbyists oonsince legislators depend on lob ceded that organizations that do byists to such a great extent have their own legislative repthe state department and agen resentatives seem to fare betcies must put representatives in ter than those who dont WE WOULD LIKE to think that we would not have to lobby N ews in a nutshell FROM OUR WIRE SERVICES Loos official assassinated VIENTIANE Laos A top aide of Deputy Premier Phoumi Novasan was assassinated as he drove in a car through the downtown area of Vien tiane Unconfirmedreports said the killing was staged by the Communist Pathet Lao The dead man was Maj Chao Ekarat a Laotian prince and nephew of neutralist Prince Souvanna Phouma Security shakeup in Britain LONDON Prime Minister Harold Macmillan announced a sweeping investigation of security pro cedures andpractices in British government services He made the announcement in the wake of two major Communist spy cases involving civil servants Is Bormann still alive FRANKFURT State Atty Fritz Bauer said he has circumstantial evidence that Martin Bormann Hitlers top lieutenant is alive and probably hiding in Latin America Bauer declared eyewitness accounts that Bormann was killed trying to flee Berlin late in World War II are highly ques tionable Senate challenged WASHINGTON James S Pope a former president of the American Society of Newspaper Edi tors has accused Sen Richard B Russell DGa of attempting to smear newspapers simply because mil itary men have been careless with defense data Pope of Louisville Ky wired Russell objecting to viewsexpressed by the senator that some newspapers applied pressure to obtain intimate defense details shows gains WASHINGTON The government reported a significant increase in the factory work week in April along with modest employment gains in many jobscarce manufacturing industries Seymour Wolf bein Labor Department manpower chief said the changes reflect promising overall economic improve ment the House and Senate chamber to promote their own bills Safety Commissioner Carl Pesch complained of the prob lem Tuesday He said it was necessary to send a department al employe to the legislature almost daily in order to beat down bills which the depart ment thought were not in keep ing with good safety practices The highway commission at its meeting in Ames Wednesday received a recommendation from its chief engineer that it should provide a fulltime lobby ist during legislative sessions The commission took no action on the suggestion The Governor said the lobby ing activities by state depart ments during the recent session called for a thorough study of the present situation the board of regents as an ex ample HE SAID HE told the regents during budget hearings last De cember that he did not want states taxsupported institutions of higher education vying against each other Erbe said he urged that the regents and the institutions under their jurisdic tion present a unified front He said the practice of the highway commission in the past has been to make men available o the legislators for explana ion and acquaintance with the commissions program No foul play car merely was stolen AUSTIN An elderly woman who had beenfeared he victim of foul play has been ocated in Kansas Austin po ice said that Olive Williams 75 had not been harmed She jaid her car had been stolen That apparently accounted for arlier reports that her car had een seen in Marion County 111 A suitcase containing her personal effects had been found in a ditch after the car was dghtcd by a farmer A promise of support SAIGON South Viet STam Iff Vice President Lyndon B Johnson arrived in this strategic Southeast Asian nation Thursday sringing assurances that bhe United States will stand by its allies in this part of the world in the face of ommunist danger The vice president on a round the world mission for President Kennedy came here for an onthespot study of Communist agression in a guer rilla war in which an estimated 400 to 500 Vietnamese are being killed every month Johnson stepped from a chart ered jet and took a salute from a sharplooking honor guard of 400 Vietnamese Strict security precautions are in force for Johnsons visit THE VICE president read a short statement pledging U S support for hardpressed allies in this part of the world He is scheduled to hold a two hour conference Friday morn ing with proWestern President Ngo Dinh Diem During a stopover on Guam Johnson said the United States will stand up for freedom anywhere in the world and wil do all it can to help drive out disease and poverty We believe in freedom not only in the United States but everywhere he said Johnson made clear the United States will stand by South Viet Nam BESET BY an estimated 12 000 Communist rebels South Viet Nam is the first Asian stop for the vice president in his survey of the growing Red men ace in this part of the world Johnson reportedly will offer million more in arms aid to enable Diem to boost his 150000 man army by another 20000 American aid to South Viet Nam since her 1954 independence has already topped billion about onefourth of that military During a stopover in Honolulu Johnson disclosed the Unitec States will also set up a cen tral intelligence organization probably in coordin ate all US intelligence in Southeast Asia While holding a striking force in readiness US military authorities in Hawaii told John son that American troops should not be sent to South Viet Nam at this time Mercury due to reach 80s again Spring at long last Mild temperatures were fore cast to continue in Iowa through Saturday and no rain was in sight A low pressure system in the northwest was expected to cause some partly cloudy skies Thursday night and slightly cool r temperatures in the north west and west Friday However he system which was responsi le for Thursdays gusty winds was not expected to penetrate into the state High readings in the north Friday should reach the 80s again Wednesdays high in Ma son City was a balmy 72 but it was 81 at 2 p m Thursday Partly cloudy skies with little temperature change are on tap for Saturday On the inside Editorials Page 4 Society Ntwt 78f Clear Ntwt 1011 Sports 1314 Comics 14 North Iowa Ntwt 17 Latest Markets It Mason City Ntwt1119 NORTH VfET NAM Phu scenes Geneva negotiators received a ceasefire verification Gov ernment and rebel delegations met at rebelheld Ban Namone A as government spokesmen said rebel artillery Wednesday lobbed shells into loyal posi tions at Tha Thorn Top figures of the control commis sion returned from talks with the rebels at Xieng Khouang Laos talks Say organized t warfare at end GENEVA The Big Three Western powers were reported ready to take their seats Friday ina conference about the future of Laos basing the deci sion on word received in London that organized fight ing has ceased in the jungle kingdom There was no official confirmation from the United States Britain and France that they had dropped earlier reservations to participating in the conference if a ceasefire was not certi fied I But sources close to the Western delegations said that in view of the London news from Laos they probably would agrea to sit down at the conference table with their Eastern opposites U S Secretary of State Dean Rusk and President Kennedys roving ambassador W Averell Harriman already are in Geneva action in Laos as North Iowa Fair to partly cloudy Thursday night and Friday Lows Thursday night 5255 Little temperature change Friday highs in Jow er 80s Iowa Partly cloudy Thursday night and Friday Warmer southeast cooler extreme northwest lows 45 northwest to upper 50s southeast Cool highs 70s southeast Further outlook Partly cloudy little temperature change Saturday Minnesota Partly cloudy con tinued warm Highs Friday near 80 er west Friday northwest to 80s Globe Gazette weather data up to 8 am Thursday Maximum 72 Minimum 48 At 8 am 62 Sunrise Sunset So is Soviet Foreign Andrei A Gromyko Red Chinas foreign minister Chen Yi ar rived Thursday afternoon Lord Home of Britain and Maurice Couve de Murville of France were due later in fhe day and were reported planning to meet with Rusk to express of ficial willingness of the three to take part in the conference A Foreign Office spokesman in London said an assurance that organized fighting had stopped arrived there from the PolishIndianCanadian control commission THE COMMISSIONS job is to certify and supervise the truce ordered between Laotian gov ernment and Communistneu tralist rebels May 5 In making his announcement the British spokesman cited complications Communications are very bad and it may be that sporadic outbursts of fighting will still occur the Briton said With the fighting lines un stable groups on both sides were left isolated from the main armies at the time of the cease fire order May 5 and may still be involved in minor clashes IN VIENTIANE however Gen Phoumi Nosavan told the proWestern Cabinet that pro Communist rebel artillery was still pounding his troops posi tions in the Tha Thorn area Nosavan who is the military strong man of Premier Boun Oums regime said that as a result the governments 11man delegation would stay out of the Geneva conference until the ceasefire was verified and prob ably would not leave for Swit zerland for several days Phourniheads the delegation W Averell Harriman Presi SAME 5year plan to combat delinquency WASHINGTON UP President Kennedy Thursday asked Con large arrived in Geneva with a invited gress to authorize of federal a fiveyear action to program combat juvenile delinquency Secretary of Welfare Abraham Ribicoff estimated the cost for the first year at million Along with a special message sent to Congress Kennedy issued an executive order establishing a special committee on juvenile delinquency and youth crime to coordinate federal activities and to seek new ways of fight ing juvenile delinquency KENNEDY NAMED to committee Atty Gen Robert F Kennedy Secretary of Labor Arthur Goldberg and Ribicoff The attorney general was named committee chairman In his message to Congress the president said there has been an increase in juvenile delin quency in both urban and rural communities Juvenile delinquency and youth offenses he said dimin ish the strength and the vitality of our nation THE LEGISLATION he pro posed would provide federal grants to any state local or any other public or nonprofit agency for theevaluation and demon stration of techniques in ing juvenile delinquency Federal grants also would be W Averell nainiiiaii jrieai training and pm dent Kennedys ambassador at piovment Of experts in the field The proposec bill also would prediction that the awaited ofauth0rize technical assistance to ficial news will be coming along state and loca governments and soon He cited the Presence of n ies f shortterin Soviet Foreign Minister Andrei H 6 A Gromyko who heads upthe training and instruction in tech Communist side of the confernical matters related to the pre ence to which 14 nations were vention and control of juvenile delinquency JUDGE RULES IN FAVOR OF LOVE and Mrs Johfl Hyatt both in their 50s sit in a Los Angeles court room as a judge decided theyre not too old to legally adopt the 4yearold twins theyve cared for as boarding parents since 1958 The Bureau of Adoptions said the Hyatts proposed adoption of Brenda Louise left and Linda Lee right was against the countys rules but the judge heard the Hyatts tear ful pleas of love andinstructed them to begin formal adoption proceedings at once I
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