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Mason City Globe-Gazette (Newspaper) - January 2, 1962, Mason City, Iowa North Ipwag Newspaper Idiftd for VOL100 The Awclalea Press International Full LOBE news pa per that makes all North lowans MASON CITY JANUARY 2 neighbors 7e Paper Consists of Two SectionsSection HOME EDITION 74 Dutch will negotiate Interest lags in housing Economy feels it FAIRariWARMER By JOSEPH R SLEVIN Ntw York Herald Tribune News Service WASHINGTON The govern ment has lost a powerful and badly needed antirecession weapon The lost tool is homebuilding Sharp spurts in housing con struction helped lift the country out of the and1 1958 recessions but builders played a relatively small part in ending the 196061 slump It wasnt because the Kennedy administration didnt try The government used the techniques it had employed during the ear lier slumps but this time the prescrptibn didnt work Mortgage money wVi easier and interest rates were1 pushed as they had been during the other recessions Homebuild ing activity picked up slightly but the rise was not big enough to have a significant impact on the economy There 1300000 homes started this year and thats a meager 50000 more than were begun during 1960 Its a sorry performance when its compared to 1955 and 1959 two years that came im mediately after the 1954 and 1958 recessions Builders began more than 1500000 houses in each of those years What the evidence of recent months strongly suggests is that the government is going to have to devise a new antirecession weapon that it can use in fu ture slumps One possibility is the stand by public works program that President Kennedy hassaid he will propose to Congress in Jan uary The plan calls for boost ing Federal spending when theres evidence of a business dip Another possibility would be the use of temporary antireces sion tax cuts But Kennedy is loath to ask for standby tax re duction authority and its un likely that any Congress would enact an emergency tax meas ure in time for it to do any good A in defense spending supplied the needed lift last year Economic activity is rising as strongly as it is only because Kennedy obtained Congressional approval of a sharp rise in mili tary and spaceoutlays during the summer The experts have been trying to figure out why the govern ment no longer can rely on a homebuilding upsurge to spur a business advance and the San Francisco Federal Reserve Bank has comeup with a like ly set of answers What it boils down to is that there are relatively fewer home buyers who will respond to the bait of easier mortgage money and lower interest rates The San Francisco banks con clusion is that homebuying now is behaving like other types of consumer spending It goes up when incomes rise and the fu ture is rosy1 and dips when there are recession fears in the air The change has taken place partly because the country has exhausted a pentup backlog of demand for bigger and better homes that had carried over from the depressed 1930s North Iowa Generally fair Tues day night a rid Wednesday Lows Tuesday nightin the 20s Highs Wednesday near 40 northeast to the 40s southwest Further outlook Sunny and mild Thursday Iowa Generally fair and warmer through Wednesday Lows Tuesday night 2330 Highs Wed nesday in 40s Minnesota Fair to partly cloudy warmer Highs Wednesday 35 GlobeGazette weather data up to 8 am Tuesday Maximum Minimum At 8 am Sunrise Sunset 31 14 24 N ews in a utshell Nikitas amiable A MOSCOW Soviet Premier Khrushchev of fered to negotiate all b urn ing international problems with the Western powers The premier continued his New Years emphasis on the peaceful nature of EastWest competition Bus strike NEW YORK A strike against the two largest bus lines in the city forced 13 million regular riders to seek other means of transpor tation Subway traffic was heavier than usual Automobile traffic from Queens and Brooklyn to Manhattan also was heavier as bus riders switched to their own cars or car pools Samoa is free AUCKLAND N Western Samoa a coun try with only one town no army no railways and no political parties is the worlds newest independ ent nation The New Zea land flag was lowered Monday and Western Sa moas red white and blue flag was raised ending 46 of New Zealand administration Safe holiday DBS MOINES Iowa motorists took a holiday from traffic deaths New Years Day but five fa talities earlier in the long weekend boosted the final toll for 1961 to 633 13 more than had been recorded during the pre vious year i 6 breakins probed in Wright County i x breakms in cluding two at schools were re ported by Wright County officials No estimate of the loot was made in breakins at Belmond Dows and Rowan The Belmond Junior High School and an elementary school at Rowan were among the victims Emphasis put on peace talks over New Guinea THE HAGUE W The Dutch gov ernment announced Tuesday its willingness to discuss the futureof West New Guinea with Indonesia without setting conditions beforehand Premier Jande Quay read the government declaration in the lower house of Parliament at the start of debate on West New Guinea last remnant of Hollands East Indies colonial empire which Indonesia has to invade President Sukarno Monday proclaimed the disputed terri tory a province ofIndonesia and ordered a special military com set up to direct the in Toll on highways passes estimate CHICAGO MVA sharp spurt of accidents in the final hours of the Years holiday pushed the fi nal toll of traffic deaths beyond the National Safety Counciispre holiday estimate of 330 At midnight Monday when the threeday holiday period ended the count of traffic fatalities stood at 335 In addition there were 83 deaths resulting from fires a rec ord for a New Year period since World War II and59deaths at to miscellaneous accl tributed dents The overall toll from traffic fires and miscellaneous causes was 477 Van Johrjsorr loses part of finger in Music Man role LONDON Van Johnson collapsed on the stage of the hit musical The Music Man Monday after accidental ly chopping off the top of the second fingerof his lefthand Johnson trapped his finger while closing the door of a stage rail carriage in the opening scene He staggered off the stage and collapsed in the wings as the curtain came down after the first four minutes of the show Johnson was taken to Gharing CrossHospital He hopes to re turn to his leading role in the musical Wednesday vasion if he orders it Quay said the Netherlands iswilling toenter into negotia tions without making selfdeter mination of New Guineas Papuan population a prerequisite Previ ously Dutch had said they would negotiate only if the Pap uans assured the right of selfdetermination The Labcr party opposition had been pressing the government to announce willingness to relinquish the territory and then to negotiate for some autonomy for the Pap uans Foreign Minister Subahdrio of Indonesia recentlysaid Indonesia might considers givirgriVest New Guinea a great measure of au tonomy Dutch New Guinea 159000 square miles of jungles moun tains and swamps and the scene of some of World War ITs hard est claimed Indonesia ever since it won inde pendence from the Dutch in 1949 The Dutch say the Papuans in the disputed territory have no ethnicrelationship to the Indo nesians and are only beginning to learn selfgovernment under Dutch tutelage Sukarno gave no hint of eon ciliattpn after a meeting with his military advisers at Bogor Pal ace Asked by Teporters what was discussed he shook a clenched and said We discussed this Then he issued an order declar ing that Dutch New Guinea is iow the Indonesian province of West Irian theIndonesian name for the disputed territory The br ier also said the province is to have a Papuan governor a rriove apparently aimed at Dutch public opinion and educated Papuans Cold wave in South FROM OUR WIRE SERVICES A Yankeestyle eightinch snowfall closed Dixie schools and highways Tuesday and a new cold weather threat brought an exo dus of tourists from Floridas winter vacationlands Western North Carolina got the heaviest snowfalleight inches in Swain and Jackson counties and as much as seven inches along the Blue Ridgp Parkway Bry son City had seven inches and an inch of snow was reported at WmstonSalem Raleigh and Dur ham A new cold wave was scheduled to move into Florida arid officials of the state chamber of com merce called an emergency meef ing to consider ways of bolstering the states fading tourist busi ness which has come to a grind ing halt as a result of the weather Early last week Florida was bursting at the seams with visi tors By Thursday there was a flood of them out of the state the Florida Chamber of Com merce official said this was thethird cold front to penetrate Florida since Christmas but it was not ex pected to be as severe as last Fridays freeze Many schools in Virginia Ten nessee and Maryland were or dered closed because of the snow Traffic was slowed anddriving conditions were hazardous in many parts of the snow and rain belt Colder weather spread into the northeast with temperatures be low zero hi some northern sec tionsof New Yorkistate incliid ing jn Freezing wither in parts o Alabama Northern Georgia got up to three inches of snow and some roads were closed All roads were reportedopen in North and South Carolina but driving was hazard ous as far east as Piedmont NC Bus traffic from Charlotte N C which got three inches oi snow to Asheville NC am Johnson City Tenn was running two hours late A rash of minor accidents were reported in North Carolina but here were no traffic deaths blamed on weather Eastern Tennessee got as much six inches of snow followed by cold which froze slush4 into a jlaze of ice on Alabama had light snow mixed with rain Western sections of Virginia had four or more inches of snow and the storm was mov ing east Danville Lynchburg and Blackstone Va each had four inches of snow in six hours Thaw prevails in most of Iowa The traditional January thaw was on in Iowa And with the risingtrend in temperatures due continue at least through Thursday the deep snow cover was expected to diminish con siderably The indications were that Tuesdays highest temper atures would be from the 30s in the east to the 40s in the west where the deepest snow cover exists The Weather Bureau said the mercury might read 50 in the west troops to fly to Germany WASHINGTON About 3000 additional US soldiers in infantry battle groups will be ilown to Germany in midJanuary informed sources report Also involved in the rriove will be Air Force planes and their crews They will come from sev eral bases around the country It was understood that the two battle groups will be drawn from he 4th Infantry Division a regu ar Army outfit based at Ft Lew s Wash Xavier Cugatand his singerwifeAbbe Lane stand inclosetoftheir and take stock of their losses after burglars got away with worth of Jewelry They were filling an engagement at the WaldorfAstorias Starlight Roof when the burglars entered their 18thfloor apartment on New Yorks fashionable uppereast side million loss in wave BY UNITED PRESS INTERNATIONAL Burglars had a holiday plucking furs gems and money from the homes of therich and the famous over New Years weekend Preliminary estimates of losses ran over million The list of victims included names like WooKvorth Xavier lugat and Abbe Lane and jewelry executive Joseph C botham Jr Biggest of the theftsmay hit the million mark alone Jewelry ermine and chinchilla coats some costing as much as looted from the home of Hick ingbotham and his wife Diana granddaughter of the founder of Dollar Steamshiplines 20 north ofSan Francisco The couple was vacationing at Lake Tahoe MOINES AP Arrange ments are being made to ship 125 Iowa hogs to South Korea to build up that countrys breeding stock Secretary of Agriculture L B Lid dy said Tuesday Liddy said the project is being financed by the Iowa County Of ficers Association The hogs will be lent to 4H Club members in South Korea for use in breeding Liddy said The agriculture secretary said Gov Norman Erbe and Col Jun OPENS MOSCOW TALKS Ambassador Llewellyn Thompson halts to talk to newsmen in iront of Moscows defense ministry after conferring with Soviet foreign minister Andrei Gromyko as the opening attempt to find a mutually satisfactory basis tor EastWest negotiations Snowflakes fall on the statesman as he parries questions SAME DATE 1M1 NO MORE ARMS COPENHAGEN Denmark tf Danish government has while suspended all exports of arms housekeeperJeannetteEstournto Indonesia because of it es was out for the evening threat to seize West New Guinea She returned and found the 14 roorrihouse ransacked and all the furs and jewels gone The burglars had pried open a laundry room windowvat the rear of the home while fog shrouded the scheme from neighbors Police Lt GilbertFTeitas said that on the basis xf information Tom family representatives he estimated the loss at about million A San Rafael Calif police bulletin also called it a milliondollar burglary Freitas figure would have to await return of Hickingbotham who is chair man of the board of Shreve a leadingSan Francisco firm Original police estimates that hundreds of thousands of dol ars in jewelry ano art objects lad been stolen from the Wool worth estate on an exclusive Mi imi Beach island by boatborne jurglars drew a doubtingreac ipn from a member of the iveanddime store clan Norman B Woolworfh said hat no gems were involved and he burglars took just a few jaintings some silver china and furs and all my clothes le said the loss was much ess than the police estimate the burglars should have their heads exam ned my clothes werent worth aking The breakin at the Indian Ireek village estate on a guard id island in Biscayne Bay was discovered by private police on Monday Only a causeway uarded by private patrolmen eads to the island and Dadc Bounty metro police figure the Jurglars reached the island and eft with their loot by boat Latin bandleader Cugat and lis shapely singerwife Abbe Lane lost in jewels furs and cash as they entertained at New Yorks WaldorfAstoria Ho tel Berlin ing Florida again is topic US envoy takes step MOSCOW Ambassa dor Llewellyn Thompson and So viet Foreign Minister Andrei A Grorriyko conferred for 2A hours Tuesday as the first step in a new attempt to find a mutually satis factory basis for EastWest nego iations on Berlin The American diplomat asked f there would be more of his sessions with Gromyko said I suppose sb But I do riot know when He declined to say how he meeting went Thompson took Kempton Jen vins embassy second secretary specializing i German affairs to the meeting Soviet propaganda chief Leonid Iliychev was with Gromyko Since Iliychev erably outranks the foreign min ister this could indicate the Rus sians are already trying to move the talks to a higher level Thompson said he would fill in the British and French ambassa dors here about the conference He did not mention the fest Ger man ambassador but it is as sumed that he will give him a briefing too President Kennedy has jnstruct ed Thompson to probe the Soviet position on the Berlin issue to see if there is a profitable basis for formal talks Kennedy and British Prime Minister Harold Macmillan had agreed to have the US ambas sador handle the preliminary round for both Britain and the Jnited StatesThere is a possi bility that British Ambassador Sir Frank Roberts may also take a hand H the ThompsonGromyko talks are next step is expected to be aforeign minis ters conference to determine the future of Berlin Thompsons last round of talks with Gromyko in Moscow took place at the end of October The subject ofthose talkswas not the general Berlin situation but the problem of identification proce dures at the checkpoints along the Berlin border On the inside 4 Society News Sporls iM2 North Iowa News13 Latest Markets 14 Mason City News 1415 Comics 16 Clear Lake News 18 lowq to send 125 hogs to help Korea economy ior Miller Iowa adjutant general are working to arrange transpor tation for the hogs In Korea Liddy said the pro gram will be administered by Col Charles Anderson of Bea trice Neb Liddy said the project was launched after Harrison Weber of the IowaDailyPress Association returned from a trip to Korea and reported that there is an urgent need to improve the hog strains there MISSED DEDUCTION Mr and Mrs ther Bauer hold their three new sons Mark Mitchell and Michael born Monday in San Francisco Had they been born a day earlier it would have meant 800 in tax exemptions for their father for 1961 The infants weighed 5 pounds 2 ounces 5 pounds 10 ounces and 5 pounds 13 ounces
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