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Mason City Globe-Gazette (Newspaper) - April 13, 1960, Mason City, Iowa North Iowas Daily Newspaper Edited for tfw VOL 91 MASON CITY GLOBEGAZETTE The Newspaper That Makes All North lowans Neighbors ud tWUd run MASON CITY IOWA WEDNESDAY APRIL 13 1M C7c a ThU Pajxr oi Two One 1M A familiar form of tax relief By RICHARD SPONG GlobeGazette Editorial Research Bureau WASHINGTON The Ides of April and the necessity of cough ing up for Uncle Sam inevitably give rise to talk agitation and wistful dreams of tax relief Recently a familiar kind of tax reform has been going the rounds dressed in a new garb This would be a depletion al lowance for wage earners which is a fancy way of describ ing an earned income tax credit JEarned income it is generally agreed particularly earned in come in the lower brackets should be taxed less heavily than income from property and in vestments which may or may not represent the efforts of the person actually receiving it This distinction is implicit inthe graduated income tax itself with the lowest tax rate apply ing to lowbracket income mos of which conies from wages o salaries FROM 1924 TO 1931 and again from 1934 to 1942 an additiona specific credit was allowed fo earned income Between 192 and 1931 taxpayers were allowed to deduct 25 per cent from their normal tax on earned income up to a maximum which varied from 1924 to After 1934 taxpayers were allowed a 10 per cent credit against net income if earned up to a maximum of For purposes of simplification all taxpayers were assumed to have earned a certain part of their income up to 1931 and after Thus in the lowest brackets the true earner received no advantage But the earned income tax credit was a casualty of World War IL It was not restored despite con siderable agitation shortly after the war NOW COMES Rep Peter F Mack Jr DI1I to revive the idea as an equitable answer to depletion allowances for those who extract oil and other val uable minerals from the ground Mack has inserted in The Congressional Record a pa per by Prof E J Schmidlein Jr of Southern Illinois University which makes the point that whereas earned income is gen erally regarded as the healthi est form of Income it is today the most heavily taxed of all Navigation moon soars into orbit TOGETHER AGAIN Barbara Butts 10 is embraced by her sister Sandra Jennings after the girl was held hos tage for 30 hdurs by Mrs Jennings husband Jackie at Pulaski Va The AP Photofax deranged man was flushed out of his fatherinlaws home by police who fired tear gas overpowered and taken to a mental hospital The girl un harmed said later I wasnt scared Britain junks rocket N ews in a utshell UP Britain her program LONDON abandoning rockets capable of delivering nuclear weapons to an aggressors soil Defense Minister Harold Wat kinson told the House of Com mons today themilitary is dis continuing development of the Blue Streak a 2500miIerange missile which so far has cost million Watkinson said the money thus far invested in Blue Streak will not be wasted if il is decided to go ahead with il as a launcher for a space satel types Prof Schmidlein notes that accountants do not depreciate the income of a workingman as they depreciate that from a ma chine since they cannot appraise the value of a human being Yet the individual has been edu cated and trained his pay is part a salary and part a return on capital invested THE COST TO the Treausry of the earned income credit un der the 25 per cent redutcion plan 19241931 varied between S17 million and S35 million a year In 1942 the last year ol the 10 per cent credit against earned income it reduced total taxable income by mil lion In 1958 the staff of the Con gressional Joint Committee on Internal Revenue Taxation re portedon probable effects of a proposed 3 per cent earned in come credit The cost to the Treasury would have been million Of this million would have gone to taxpayers with in comes tinder 281 per million to taxpay ers with incomes between and 488 per million to those with incomes over 231 per These data indicate why the earned income tax credit once a pet of organized labor has of late become a middleincome bracket favorite The unions want higher personal exemp tions the fat cats want broad rate cuts at the top The earned income proposal might be called tax relief for the man in the blue serge suit IT THUS APPEARED pos sible that Britain might still try to stay in the world space race Watkinson made clear thai Britains strategic bomber force will remain effective for sever al years as the vehicle for pos sible delivery of nuclear weap ons SAME DATE1K9174 The complete cost of the ori ginal missile program of Prime Minister Harold Macmillans government would have been between and 680000000 he said AUTHORITATIVE source said this country also hopes wherever possible to pool it research development and pro ductive resources with othe North Atlantic Allied powers in manufacturing 2500milerang rockets Macmillan is understood t lave discussed with Presiden Eisenhower recently prospect of buying new American weapon vehicles as they are de ivered Britain already has pur chased a quantity of USmad Thor missiles Bomb threat ends store demonstration NASHVILLE Tenn UP 1 new maneuver the anony mous bomb threat broke u a Negrositdown demonstratio against segregated lunch coun ters here Tuesday Police and iremen acting quickly after re ceiving a telephone tip that a bomb was in the building cleared customers and sitdown ers from McLellans a variety store No bomb was found First break in Sioux City strike SIOUX CITY tf The first break in the building trades strike here was on record Wed nesday with the signing of new contracts allowing Peter Kiewit Sons Co to resume work on large Sioux City Air Force Base project It was the first settle ment in a strikewhich has tied up all major construction here since April 1 but was reached independent of general negotia tions with the Master Builders Assn ROM OUR WIRE SERVICES WASHINGTON The In ternal Revenue Service said Wednesday it is considering postponing for all states the federal income tax filing deadline from midnight Fri day to midnight Monday April 18 Taxpayers in 13 states and three possessions in which Good Friday April 15 is a legal holiday automatically have until April 18 to file their returns ELGIN AIR FORCE BASE Fla A B52G jet bomber flew 10800 miles nonstop to the North Pole and back as a prelude to launching a Hound Dog missile over the Atlantic Tuesday The 22hour plane trip was described as the long est flight made by a bomber carrying the air to ground missile TOKOY Premier Chou EnIai set out Wednesday on a threenation South Asian tour designed to mend fences damaged by Red Chinas ac tions in Tibet and border dis putes with her neighbors Burma India and Nepal DES Her schel C Loveless Wednesday sided with Nebraska official who favor annexing Carter Peugeot heir is kidnaped Nixons showing qood FROM OUK W1IIE SERVICES CHICAGO Vice President Nixon running by himself in a race for prestige made a good showing in the Illinois primary election Tuesday Nixon unopposed on the Re publican ticket and with no competition from Democratic presidential hopefuls polled more than 600000 votes in the nations third primary of the I960 election year He led the Republican ticket getting 75 per cent of the GOP vote DEMOCRATS outpolled Re publicans in a relatively light vote of about 1600000 Samuel Witwer Chicago law yer who was supported by most GOP organizations led the six man race for the Republican nomination for US senator in a close contest Democratic Sen Paul Douglas was nominated for a third term without opposition In incom plete returns he gathered more than Nixon AP Photofax TRANSIT I SATELLITE This is a sketch of the U S navigation aid satellite shot into the orbit Candystriped painted pattern is a unique antenna designed to transmit signals equally well on four fre quencies Producing bands hold solar cells which em ploy suns energy to charge batteries PARIS Wednesday mnted a darkhaired man they said darted into a group of chil dren at play and snatched up he grandson of millionaire auto manufacturer JeanPierre Peu geot for ransom The kidnaper dropped a note as he fled warning especially do not warn the police In 48 hours I will give you instruc tions GOV WILLIAM Str atton earned the chance to become the first Illinois governor to be elected to three terms in a row by defeating State Sen Hayes Robertson His opponent will be OttoKer ner former Cook County judge who swamped State Treasurer Joseph D Lohman and Stephen A Mitchell former Democratic national chairman in their par tys gubernatorial test Nixon drew a complimentary vote that exceeded his 341463 in Lake Iowa to the Cornhusk fer state Loveless said the putting of Carter Lake into Nebraska seems tobe the practical approach to solv ing the border dispute be tween Iowa and Nebraska A shift of the Missouri River channel has left Carter Lake in Iowa but on the Nebraska side of the river employes who fled Cuba in a big Viscount turboprop Cubana Airlines plane sabotaged the planes engines here Tuesday After the plane landed the pilot al lowed all four RollsRoyce en gines valued at each to run on a lean mixture of fuel until they overheated The hundreds of turbine blades burned out LENZ DIES NEW YORK tfl Sidney S enz 86 authority on auction bridge and top player for many years died Tuesday threatened death to the child if the kidnapers demands were not met The parents of the old boy Eric Peugeot said a man called them just before midnight demanding the ran som The Peugeot auto works is one of Frances three largest Eric son of Mr and Mrs Roland Peugeot was kidnaped from the play ground of a j country club in suburban St Cloud Tues day afternoon V The child and i s brother JeanPhilippe had lunched at the club with their g r andparents Then a gover ness and the family chauffeur took them to the playground THE KIDNAPER snapped the lock on a gate and made his way down a path across a gar den into the playground The two Peugeot toys and a friend were playing in a sand box The intruder snatched up Eric and ran off the way he had come The kidnaper fled in an auto mobile On the inside Editorials Page 4 North Iowa News 10 Mason City News 1213 Latest Markets 13 POLICE SAID the note also the April 5 Wisconsin primary but it was far shortof the 781 710 rolled up by President Ei senhower in the 1956 Illinois primary None of the Democratic presi dential hopefuls entered the Il linois primary Mulkey told to appear on May 3 Mulkey fi nance director of the Democra tic state central committee has been cited to appear in Han cock County District Court here on May 3 io face a charge of contempt of court Iowa bathed by showers Scattered April showers moved eastward across Iowa Wed nesday dampening the topsoil parched from the burst of spring and Marchlike winds The rains came just at the time when farmland was dry ing out enough to permit farmers to start working their fields Northwest Iowa gotthe bulk of the first rains Sibley re ported receiving nearly an inch and a half Ocheyedan an inch and a quarter Melvin an inch Esthervilie and Cherokee more than an inch Spencer nearly an inch and Sioux City about half an inch Albert Lea Minn had an inch but Mason City received only a fraction of that amount 08 But another rain belt is moving west from the Pacific Northwest and Mason City could get a second chance at a refreshing downpour later in the week Temperatures were moving up into spring levels The top readings Tuesday varied from 64 degrees at Sioux City to 72 at Cedar Rapids Davenport and Council Bluffs Mason City had 69 Wednesdays highs were expected to be a few degrees higher Mulkey did not respond to a subpoena last week from the Hancock County Grand Jury Hancock County Attorney G W Templeton said the order scheduling the contempt hear ing was signed by District Judge W P Butler Mason City Mulkeywhose solicitations for Democratic campaign funds have drawn criticism in some quarters said he was advised by his attorneys not to answer the subpoena unless he was as sured of mileage and fees for the trip The subpoena was served on him in Des Moines Sports Society News 202122 Clear Lake News 22 Comics 24 SURGERY SET BOSTON UPI Actor Gary Cooper 58 was under treatment at a hospital Wednesday for a prostate gland condition He is expected to undergo surgery when tests are completed North Iowa Clearing and cooler Wednesday night lows in upper 40s Partly cloudy and cooler Thursday highs 5863 Fiveday Iowa Temperatures will average near to slightly below normal Wed n c s d a night through next Monday Cooler Thursday with only minor temperature changes thereafter Afternoon high will be from the upper 50s in the northeast to the lower 60s in the southwest Overnigh lows will be from the middl 30s in the north to around 41 degrees in the south Thun dershowers Wednesday nigh and again during the weekenc should give 50 to an inch o precipitation Minnesota Partly cloudy coo er Highs Thursday 5565 GlobeGazette weather data u to 8 am Wednesday Maximum Minimum Precipitation 69 46 08 Bulletins PARIS UPI France is considering setting off an un derground atomic blast in the Mediterranean island of Cor sica it was announced Wed nesday WASHINGTON Foreign ministers of the United States Britain France and West Ger many agreed Wednesday on a unified strategy for negotia tions with the Soviet Union on Berlin problems at the May summit conference in Paris WASHINGTON FBI Wednesday announced the arrest in San Francisco of a neon tube bender in connec tion with a bomb hoax involv ing a United Airlines plane It was the fourth arrest in seven days on charges of mak ing false bomb reports Truck blows a tire Lucas man killed LUCAS WJ Ernest Fierce 46 operator of a service station grocery store here was killed Tuesday night when his pickup truck blew a tire and rammed into an embankment along High way 34 near here Another first for US FKOM OIW WIRE SERVICES CAPE CANAVERAL Fia The United States successfully fired a radio star earthsatel lite into orbit Wednesday to test a revolutionary air and sea nav igation system that would be free from weather problems Confirmation that the naviga tion satellite was in orbit al am when its radio sig nal was picked up at Las Cru ccs NM the Navy announced in Washington The new moonlet may show how to avoid disasters such as the Andrea DoriaSlockholm ship collision off the coast of Massa chusetts and Ihe crash of two airliners over the Grand Can yon in recent years These were two of the biggest accidents blamed in part on navigational errors caused by bad weather FOR THE PRICE of a special receiver and a slide rule a navigator will be able to use operational Transits to find his exact position on earth day or night and in fair weather or foul scientists said The experimental 3 6 i n c h sphere was carried into space by the Air Forces newest rocket It is a twostage vehicle named ThorAblcStar an off shoot of the highlysuccessful threestage ThorAblc which sent Pioneer V toward the sun and Tiros I around earth within the past month However ThorAbieStar bears little physical resemblance to ThorAble The booster was still the Thor intermediate range bal listic missile but the AbleStar upper stage is stubby and thick The old Able stage looked more like a straw slicking from a bottle The AbleStar stage was equipped with a new sfartre start engine to get Transit into a circular orbit 400 miles up It is the first such rocket ever launched that is capable of be ing stopped and restarted while in flight THE HEART of the satel lite consisted of the transmit ters operating on 54 324 162 and 216 megacycles and two oscillators With these scien tists hoped to give working proof o a new navigational concept they describe as a major scientific breakthrough Six ground stations were set up to track the satellite The shot had four basic objectives Checking out the navigational concept with simple demonstra tions Commercial and private organizations and individuals would not use Transit 1 since they do not have the necessary receiving equipment Giving an improved under standing of the effects of iono spheric of radio waves necessary if Transits are to give precise in formation STUDYING THE earths and gravitational pull and dis tances between land masses Current navigationalmaps are not exact and could throw Trani sits data out of kilter unless better ones are made Improving orbital Scientists will have to know the satellites exact position in space at all times if it is to jhave the desired precision in its data Mason City race discrimination denied By DAVE DALE GlobeGaiette Staff Writer A sharp charge of discrim ination against Negroes in Mason City was hurled Wed promptly disput ed by local business and civic leaders The charge was contained in an Iowa report for the US Commission on Civil Rights Information was compiled by the state advisory committee a sevenmember body as signed to study the civil rights situation in Iowa Nathan H Levinson Mason City attorney who is a mem ber of the Iowa committee was the first to take issue with the charge I cant understand it he said The information I turned in on the Mason City situation was nowhere near so sharp as this report The Iowa situation was de scribed in a volume of abridged reports from 48 of the 50 state advisory commit tees of the US commission In Mason City the report said most Negroes have been forced to buyhomes in tne poorest sections of town in or der to obtain a residence Wherever the Negroes have bought a home they have encountered both open and hidden disapproval Peti tions have been circulated for their removal and properties have been raised both as to selling price and renting price the report said It also said that the Negro population here is gradually decreasing because of the in ability of the young to obtain employment and proper hous ing Negroes are served in most Mason City restaurants and hotels the report said but barber shops wherever pos sible avoid serving the Negro although several barbers have been fined for refusal to do so Colored patronage is not welcomed anywhere in Ma son but they are served the report added explained that fee had submitted his report oa Mason City at a Bes Momes meeting last fall of the seven member state advisory com mittee At that time former US Rep Karl M LeCompte Corydon newspaper publisher was chairman Harriette J Baum Manchester is1 the cur rent chairman In studying the ;