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Mason City Globe-Gazette (Newspaper) - January 24, 1962, Mason City, Iowa North lowag Daily Newspaper Edittd for The CITY GLOBE GAZETTE VOL 100 newspaper fhat makes all North lowans neighbors ww wenutoul IUI Wire MASoN CITY loWA WEDNESDAY JANUARY 24 1W2 HOME EDiTlQJN 7c n approves 1 cent postal hike Airlines turn to mergers Would reduce duplications By ROBERT PORTER NEW YORK AP American Airlines and Eastern Air Lines will combine into the nations big gest system if stockholder and government approval is forthcom ing The plan already has run into some opposition from the larger competitors and unions The air lines involved however claim that it is the only way for the debtriddep carriers to regain their health The consolidated line would be called American Airlines erasing the name of the pioneer Easfern Air Lines from the roster of American carriers The proposal to create a sys tem with million in assets 39000 employes and 400 aircraft will be submitted to stockholders of both companies and the Civil Aeronautics Board t t There was no mention in the announcement of Eddie Rickeh backer 71 famed World War I air acewho is chairmanof the board 3113 qhairman of the execu An vEasteriTAir spokes tHafeRickihbacker would continue toBold those posts as long as Eastern remained an entity merger would be another thequickening to lie together competing trans portation lines in an effort to pull out of a financial morass United Air Lines and heavfly iqdebt Capital Airlines merged last May making United the big gest of the domestic carriers On the rafl the New York Cen tral and Pennsylvania systems agreed last week to merge Other proposed combinations are being pushed The 11 trunk air carriers lost an aggregate of about million in 196L Eastern went deeply in the red while American earned million C R Smitfi of Amer ican and Malcolm Av Madntyre president of Eastern jointly an nounced that the aim of the mer ger was to provide a stronger sys tem which can survive todays financial crisis meet its obliga tions to the public and cope with the technological demands of the future They estimated savings of million a year could be effected by eliminating duplicating flights and other services and by better utilizationof equipment and facd ities Smith would be chairman and chief executive officer of the East ernAmerican combine with Mc Intyre president and second in ex ecutive authority The merger terms provide that Eastern stockholders would re ceive for each Eastern share held shares of American plus war rants good for five years to pur chase an additional onethird share of American at a share American now No 2 in size be hind United Basically is a trans continental line but also serves points in the v Midwest border middle Atlantic and New England states and into the Southwest as far as DallasFort Worth Fourthranked Easterns routes are concentrated mainly along the Eastern seaboard It also flies northwest to MinneapolisSt Paul southwest to DallasFort Worth to Miami Fla Bermuda Puerto Eico and Mexico City The lines serve 30 cities in common Sources predicted that if the merger goes through airlines inevitably apply for mer gers of their own Early spec ulation involved these possi bilities TWA and Delta TWA Delta and Northwest TWA and Northwest Northwest Western and Bran Iff MASKED WITNESSMasked woman fies before the Narcotics Advisory Council during public hearing conducted in Bridgeport Conn as a part of an overall study of narcotics problems Lis tening isRobert C Grieb chief of narcotics control section Connecticut Health Department Witness told council how she kicked the drug habit and gave testimony regarding her activities as a former drug addict N ews in a nutshell FROM OUR WIRE SERVICES Z V Blacks get own state CAPE TOWN South Africa Prime Minister HendrikrVerwoerd has announced his white suprem acy regime plans to give internal selfgovernment next year to a segregated state of two million blacks in the Transkei area on the Indian Ocean Venezuelan unrest CARACAS Venezuela Armored cars rumbled into suburban El Valle as1 the government braced for a showdownwith extremist gunmen and saboteurs seeking to spark revolt Reserves are needed WASHINGTON Defense Secretary Robert S McNamara said there may be frequent crises in the years ahead which would require some reservists to be ready for immediate callup But he told the House Armed Services committee the administration hoped to minimize such hardships through a major reorgan ization of U S reserve forces Spanish hotel crumbles PINEDA DEL MAR Sjain Rescue crews pulled the IQth body from the rubble of what was to have been Spains biggest hotel A giant crane slammed into the topof the eightstory resort hotel Gran Hotel Taunus which was still under construc tion and the unfinished building crumbled into a mound of debris burying many of the 380man con struction crew To probe massacre LEOEOLDVILDE Loyal Congolese gov ernment troops and a team of U N administrators have been flown to the north Katanga town of Kon gblo where troops on New Years Day massacred 19 white Roman Catholic priests Measure moves on to Senate Junk mail is included WASHINGTON House passed Wednesday a bill to addone cent to the ost of mailing a letter and raising postage rates for magazines newspapers and advertising material Post cards also will be in creased from the present three ents to four cents The bill one of the adminis rations high priority measures was passed by voice vote It now goes to the Senate The House added 72 million to a rate increase bill worked out by the Kennedy administration and House Democratic leaders producing a measure that would bring in million if accepted by the Senate There is some doubt on that score however The bill raises first class anc air mail rates fay a penny to and 8 cents fora total increase in those categories of million It also callsfor more in the rates paid by newspapers and magazines million more in thirdclass use direct mail advertisers in ntiscettanebusiiicreasesV 50 slosh seen in some AP traditional business lunch or din ner seemed safe Wednesday asa full income tax the prospects were dimmer for a round of night clubs with cus tomer TheHouse Ways arid Means Committee1 looking for more rev enue fromtighter tax laws Tues dayordered a legislative section drafted that wouldpermit deduc tion of only 50 per cent of most business entertainment and require proof of the expenses Such draft usually mean substantial agreement in the com mittee which handles tax mat ters The version the committee or dered prepared for a final vote presumably would tax much bus iness entertainment money which All next July 1 HEADY fireman at Photofiuc Tnrfhvf Judt back through the hole in which it became stuck while the tot was playing fort in his San Pablo Calif home With the aid of pry bars wielded by firemen and some squirming by Peter himself he was freed in about 20 minutes Doubts if medical aid will come to vote asked for The administration andyear t na IPA doubt Wednesdaythat a medical care bill would come up for a vote in theHouse this the House leadership in a com lion which would have covered about 85 per cent of cost of such mail Rep Ken Hechler Va of fered an amendment increasing the total to million Covering full costA surge of resentment against bulk mail advertising some called it junk ried his proposal by a voice vote Southern winds boost mercury across Iowa Fresh south westeriy winds brought warmer weather to Iowa Wednesday There was a chance that parts of the wellfrozen state would get their first above freezing temper atures in several weeks Skies wereclear and overnight low readings ranged from 7 at Sioux City and Cedar Rapids to 18 at Mason City Sioux City and Council Bluffs almost moved out of the freezing range Tuesday climbing to 30 Novel space experiment is failure CAPECANAVERAL Fla AP o c k e t failure Wednesday ruined an attempt tbs boost satellites into orbit simultane ously to p r o b e a number of space The space quintuplets hurtled into the sky at am cradled snugly in the nose of an 80foot ThorAbleStar rocket The first stage of the 55ton rocket per formed normally and observers at the Cape saw the second stage ig nite Dubuques reading 18 was the coldest Light snow waslikely in north east Iowa Wednesday night and Thursday but the warming trend was expected tohold on Lows of 10 to 20 were forecast for Wednesday night and highs Thursday should be about like Wednesday JOINT MOVIE NEW YORK M Plans are is exemptunder present law alunder way to joint though there were no firm estiSovietAmerican motion pic mates falls considerably short tureProducer Lester Cowan of President Kennedys recomannounced Tuesday that both mendations which would have American and Russian actors completely eliminated deductions would be in the cast and scenes for most business expenses The50 per cent limit would ap ply to nightclub tabs theater tick ets club dues and virtually all other forms of entertainment ex cept that offered at business con ventions and stockholder meet ings A silly concept objected Rep John Byrnes of Wisconsin second ranking Republican on the com mittee What it says is that busi ness entertainment is 50 per cent good and 50 per cent bad Enter tainment for legitimate business purposes should be allowed in full If its not legitimate it should be disallowed entirely would be filmed in both coun triesi SAME Iowa Safety Department Flpires BUck Flar Means Trifflo Death s Fast Z4 Bonn Regardless of the outcome congressmen on record and help make the proposal an issue in the November congressional election I dont know if we will be able to vote on a medical caxe bill or toldsome 1000 6fficialsof trade associa tions at a conference sponsored by the TJS Chamber of Com merce It will be difficult to get a vofe The administration wants Con gress to ti invmedical care for the aged with the Social Secur ity system The plan is opposed by theAmerican Medical Asso ciation and has drawn consider able fkein Congress FAIRandWARMER Ilouse Republican le a d e CharlesTA Halleck drew V ap when he ex pressed opposition Kennedys proposal that th United States iriiilio of a special million TJnice Nations bond issue Hallecksaid nations who ar in the UN and to vot ought to pay up their dues He called the propdsedrbondi sue afiction s Kennedy has told congress th bondissue would bring indirec pressure on countries whic have refused to help pay fo specialUN operations such a the Congo Halleck and Sen Barry Gold water RAriz told the grou that Congress should not aj prove Kennedys request fo standby authority to lower taxe and accelerate public work North Iowa Generally fair and warmer through Thursday Lows Wednesday mght in up per teens Highs Thursday in lower 30s economics If we put that power in tha office someone isgomg to com But 20 minutes after launch the Defense Department announced that theupper stage failed to build up sufficient thrust after ig nition and he entire rocket as plunged in the Atlantic Ocean far down range The failure wrecked the United States most ambitious multiple aaylpad experiment to date At tempts have been made previous ly to send three satellites aloft with one booster but never as many as five five satellites were to have been sprayed into orbit by spring devices much like the pellets from a shotgun charge This was to have been the first of three major US space efforts scheduled this week On Friday an AtlasAgena rocket is slated tohflfl a1 Ranger 3 payload to the moon to take clpseup televi sion pictures and land an instru ment package on the lunar sur face1 V The attempt to orbit astronaut John H Glenn Jr is set for Satur day BODIES FOUND LAKE PLACID NY UPI bodies of crewmen were located Tuesday in the wreck age of ah Air Force B47 jet bomber which crashed last week 10 Iowa Generally fair and warmalong someday arid abuse it er through Thursday Lows he said Wednesday night 1520 Highs Thursday low 30s east to low 40s west Further outlook variable cloudiness with chance of scattered snow Fri day Iowa will average Temperatures near normal Wednesday night throughnext Monday It will be colder over I h e weekend followed by a warming trend by the end of the period Normal highs are f from 31 degrees north south Normallows are frotn li north to14 southPrecipj tationiwilT ot an inch in snow near the ibegin ning of the period and again near the end of the period Minrmota Cloudy light snow warmer Highs Thursday near 32 GlobeGazette Weather Data up to 8 am Wednesday Maximum 23 Minimum 3 At 8 a m 15 Sunrise Sunset On the inside Editorials Page 4 Society News 10110203 Sports 1718 Latest Markets 20 Mason CityNews2021 Clear Late News 2223 North Iowa News 26 Cpmics 28 Transit 30 censure likely Penalty not anticipated PUNTA DEL ESTE Uruguay AP The hemispheric confer ence on Cuban communism picked up speed Wednesday amid indica ions it would end with a rebuke or the Havana regime for joining he Soviet faloc but with no ef ective penalties Argentina and Brazil f pushed ahead with a compromise pro posal to bar Fidel Castros gov ernment from a voice in deliber ations ofthe Organization of American States on the ground hat the revolutionary regime does not represent the Cuban people The door would be left open for uba to return to the hemispheric fold should1 Castro change his ways or should an antiCommunist overnment emerge in Cuba 1 l Isolation from the OAS is a pen alty far milder than the diplomat ic and economic sanctions Presi dent Kennedys team had hoped for when it came to the Inter American foreign ministers meet ing Despite fears of congressional anger that would produce opposi tion to Alliance forProgressap propriations the US delegation could do little in the face of the opposition from Brazil Mexico Argentina and Chile to stiff penal ties A joint proposal to isolate the Castro government fromOASac tivities was reported worked out Wednesday after a threehour conference of the foreign under secretaries of Argentina Brazil Mexico Chile Ecuador and Haitir a group which has come to be known here as the outer seven The proposal was to be subr mitted to the seven foreign ministers and then to the Central American delegations for their concurrence before its intro duction before the conference A Chilean spokesman reported all differences within the outer seven had been resolvedhut de clined to give details It was un derstood the proposal would draw a difference 1 between the Cuban governmentand Cuba as a nation because Brazil and some other na tions Contend Cuba is stfll geo graphically inthe American fam ily andcannot be read out of the organization Fewif any delegateslooked for any change in Cuban policies as a result of the conferences ac tion and Cuban delegates scoffed atjrtie idea of the Havana regime being shelved in the OAS We just do not care about that trash said a member of Castros delegation Any taken by the confer ence unanimously is certain to be hailed publicy as a signal victory da d aigticii victory spending in a recession Goldfor the antiCommunist cause The water said his opposition wa based on the constitution no argument was heard that even holding such a meeting on Cuban subversion would have been po litically too risky six months ago before the Alliance for Progress program was adopted and before Castro publicly embraced Marx ismLeninism RUSK OAS LEADER CONPERUS State Dean Rusk right and Jose Mora of Uruguay secretary general of the Organization of American States huddle before start of Wednesdays session of the OAS foreign ministers conference at Punta del Este Uruguay
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