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Mason City Globe-Gazette (Newspaper) - January 21, 1963, Mason City, Iowa Hughes plans tax hikes Sec story on page 3 HOME EDITION JFK defends cut in taxes WASHINGTON Kennedy told Congress Monday that cutting taxes despite a huge deficit is the best way open to us to increase revenues Kennedy devoted the annual economic report last of his three major messages to the new Con gress to allaying the fears of those legislators who called hie fiscal program the heaviest spending and biggest tax cut ir history incredible a mis take and too big In the pro cess he revealed a few more de One Mans Opinion A Radio Commentary By W EARL HALL Editor and Publisher BROADCAST SCHEDULE CGLO 13UO WOI A mil 640 WTAD Quiacy 930 pm Sun Tuei pm Thurj WSUI Iowa City 910 pm Sat Steel has seen much better days QUALIFIED G EOLOGISTS in recent weeks have ex pressed the view that extensive iron ore deposits lie under Iowas most fertile farm land These have been shown on a map as stretching in a wide belt across the state from Ma son City to Council Bluffs and into Nebraska The first repprl on seismological probes are ex pected almost any day now But dont get the I cant make this too big steel mills are going to dol the Iowa landscape tomorrow or the day after Even if these iron ore deposits are verified profit able mine operations arent in the cards for the foreseeable future Steel companies are ob taming their supply from a far more convenient and less ex pensive source This evidence of iron ore in Iowa doesnt come at a happy time for the steel industry Las year was anything but prosper ous With mounting costs anc lower income most steel corpor ations have had dends to cut divi Better times may be ahead I say MAY be There are favor able signs December normal 3y a slack month saw unex pected demand for steel Be fore summer production couk reach an annual rate of 110 mil lion tons a year Thats abou 70 per cent of the nations steel making capacity This somewhat optimistic out look for 1963 however does no hide the fact that the steel in dustry is ia trouble and tha heroic efforts will be put it back on a sound basis The slump started several year ago It has serious implication because of the widespread be lief that we cant have pros perity without a sound steel in dustry What has brought steel to thi lackluster state Thats the question I am go Ing to try to answer in this visi with you ails of the tax program he will end to Congress next Thursday If the country should slide into ecession this year through failure reduce taxes the President aid the prospective eficit would worsen and perhaps break all peacetime deficit rec rds By contrast Kennedy predicted e planned tax re uction will add billion a year families income boost outpu f consumer items by billion ncrease profits and encourage usiness investment He promised As the economy eturiis to full employment the udget will return to constructive Balance While urging tax reduction as nsurance against recession Ken ledy did not predict a slump On he contrary he forecast moder ate expansion in 1963 to a record S78 billion of national output up 1A per cent from last year Already he reported the re overy from the depth of1 reces iion 22 months ago has halted the postwar trend of ever more fre quent recessions But the gains are frustratingly short of the trides that are needed he said The message went on I do not expect a fifth post var recession to interrupt our progress in 1963 It is not the fear of recession jut the fact of five years of ex cessive unemployment unused capacity and slack he consequent hobbling of our rowth constitutes the urgent case for tax reduction and reform The billion in proposed tax cuts partly offset by billion of revenueraising revisions would jo into partial effect on July 1 Kennedy said Individual income tax liabilities would be reduced by billion a year most of which woule ranslate immediately into greater akehome pay through lower ax withholding on paychecks More cuts would come in 1964 and 1965 to a total of well over 8 billion More than billion of this would be poured into purchases of new goods and services Ken nedy said and the spending stream would be swollen as cor porations also beneficiaries of ax dividend pay ments The rising demand woulc call for greater output and more factory hence he said more income and still more ipending Special tax relief for small busi nesses would be retroactive to Jan 1 1963 he disclosed This would be a full year ahead of the start of the basic corporate tax rate reductions from 52 per cent to 47 per cent a cut Corporations now pay 30 per cent on their first of in come plus an additional 22 per cent on the rest for a total of 52 per cent Kennedy said that as of the start of this year the rate on the first would be dropped to 22 per cent but the 52 per cent overall rate would be retained for 1963 Thus companies with small earnings would benefit quickly FATAL INJURIES FORT WORTH Tex UPI A fourmonthold girl died Sun day four days after her moth er admitted beating her in a fit of rage Mrs Malcolm Alston 20 told police she kicked the Without doubt the biggest single cause is competition from foreign steel As recently as 1950 U S accounted for almost half 466 per cent of the worlds steel Now a dozen years later our share is down to 25 per cent In those 12 years foreign steel has almost tripled while Amer icas output has remained at virtually the same level For eign production in 1950 aggre gated 110 million tons about 10 per cent more than our 97 million tons By 1961 foreign production had soared to 295 tons while Americas output had inched up only to about 100 mil lion tons Until recently American pro ducers tended to underestimate the challenge presented by for eign steel They expected Euro pean and Japanese steel large ly in ruins from World War II tt Paoe 2 child Penny Alston in a fit of anger because the girl refused to eat Hi neighbors North Iowa has two new residents and their foster parents would like to have you meet them Mrs Clarence Turnure shows off Debbie 2 top while Mrs Harold Dellit with Karol Jean 9 months lower More about these little girls just arrived from Korea can be found on pages 5 and 17 N ews in a iMjwspoper that makes oil North lowons FROM OUR WIRE SERVICES CITY GLOBEGAZETTE VOL 102 MASON CITY IOWA MONDAY JANUARY 21 1H3 10c t copy NO Atest ban bid by Russ met by caution in U S FKOM OUB WIRE SERVICES WASHINGTON The United States was cautiously hopeful Monday that some agreement on a nuclear test ban treaty might be reached with the So viet Union An unexpected changeof po sition by Premier Nikita Khru shchev led tothe hopes that new nuclear talks might prove fruit ful Khrushchev in a letter writ ten to President Kennedy but just made public offered to ac cept limited international in spection on Soviet territory to check against sneak nuclear tests He also said he would permit foreign personnel to place up to three unmanned automatic monitoring devices known as black boxes on Soviet soil But he said measures must be taken to insure that there was no espionage involved in the in spections Kennedy in his reply told Khrushchev that I am encour Kolwezi Shaff Plan debate set DES MQINES Debate on the Shaff reappor tionment plan will be made a special order of business in the Iowa Senate at 9 am Jan 29 Sen Robert Kig ler RNew Hampton majority floor leader said the attorney general has been asked for a ruling on an alleged fatal mistake found in the wording of the plan as it was passed by the 1961 session of the legis lature Blast rocks E Berlin BERLIN A mysterious explosion rockedan East Berlin residential area where visiting Soviet Premier Khrushchev and other high Communist of ficials are staying Commuter trains collide crowded Reading Co com muter train rammed the rear of another packed elec tric local in downtown Philadelphia showering huge sparks over the elevated tracks At least 100 persons were injured Still wants China admitted NEW DELHI Prime Minister Nehru still is in favor of admitting Communist China to theUnited Nations in spite of Pekings armed invasion of Indian territory 1 by UN KOLWEZI Katanga United Nations forces moved peacefully into Kolwezi Monday and the military action to re instate Katanga with the rest of the Congo seemed virtually at an end Operation Grand Slam Two began at dawn It was com pleted about eight hours later with Brig Reginald Npronha the UN military commander being welcomed into town by President Moise Tshombe j Not a shot was fired and little knots of civilians and unarmed j Katanga gendarmes w a v e d1 cheerilyas the UN column rumbled past i Kolwezi was the last strong hold of Katangas secessionist forces Allmining installations in the key industrial centers were undamaged On the inside EditorialsPage 4 North Iowa News 5 News Quii s Society News Clear Lake News 11 Sports 1314 Latest Markets It Mason City News 1718 Comics is SAME CLOUDY North Iowa Lightsnow Mon day night and Tuesday with one to three inches likely Warmer Monday night lows 5 below to 5 above Warmer Tuesday highs 10 to 18 Iowa Considerable cloudiness with occasional snow through Tuesday one to three inches new snow likely Rising tem peratures Monday night lows 5 below northeast to 15 above southwest Rising tempera tures east Tuesday turning colder west highs 5 above northwest to 15 to 20 above southeast Further outlook Partly cloudy Wednesday colder east and central Minnesota Snow in south windy Continued cold Highs Tuesday zero to 10 below GlobeGazette weather data up to 8 am Monday Maximum Minimum Precipitation Sunrise Sunset YEAR AGO Maximum Minimum 10 23 Trace 5 12 POOR Kitner comforts his cat after fire put the Kitner family out of its home at Mason City The animal was soused in the frigid cold whenit returned to the damaged house while firemen Were still using water to quench smoldering embers The cats tail frozen stiff was switching normally Monday Another photo on page Family routed by home fire Members of the Lester Kit ner family put out of their home at 1117 16th NE by fire Sunday have temporary shel ter with friends and have ar ranged for use of a vacant home near their burnedout dwelling The Kitncrs have not decided whether to rebuild their ex tremely damaged home The fire blamed on wiring trouble in the attic raged throughout the sixroom home Sunday morning Although fire men were able to save the building there was damage in all parts of the interior The fire apparently had filled the attic before the family was made aware of it as it descend ed Mason City firemen were called but the fire burst through walls into the attached garage and main part of the house within moments after it was discovered The fire was controlled fair ly rapidly by firemen working in 9belowz e r o temperature While firemen battled what had first appeared to be unstoppable fire neighbors carried out fam ily much of the house conents in reasonably good condition The salvaged goods were taken to a nearby vacant house owned by Lyle Medlih Carpen ter The Kitners will have use of that houseuntil their own property is rebuilt or made liv able The family man wife and son Tommy staying at the George Stumphy home 926 16th NE tempo rarily They escaped from their burning home without injury aged that you are prepared to accept the principle of onsite Inspection s Russias refusal to accept on site inspection has been the ma jor stumbling block ever since the test ban negotiations began Secretary of State Dean Rusk said Khrushchevs move has at least opened the way to some serious discussion Rusk said that so long as Rus sia flatly barred any interna tional inspection it was not possible to engage in serious discussions to discover whether a test ban is possible He said that in any test ban agreement the United States must be reasonably assured that the agreement is carried out said the world would be swept by great waves of suspicion But despite the fact that the Soviets have now moved closer to the US position differences remain Khrushchev said in his letter that two to three onsite inspections a year would be enough Kennedy said eight to ten are necessary The official Soviet news agency Tass Monday criticized the pres idents suggestion for more on inspections Tass said they iwere altogether unnecessary The Khrushchev letter led to rSSoviet nuclear test ban Stalks in rNew York last week ey will be resumed in Wash Tuesday with Britain the worlds third atomic power tak ing part The communications between Kennedy and Krushchev were cept secret apparently to see low the negotiations would pro teed The Soviets then suggested hat they be made public on Sun day and the United States greed The reason Khrushchev offered Kennedy for his policy reversal was that he understood that Cennedy could not persuade the JS Senate to ratify a test ban reaty unless there was some rovision for onsite inspec ions If this is the only difficulty on the way to agreement he wrote then for the noble and lumane goal of ceasing nuclear weapon tests we are ready to meet you half way in this ques tion KGLOgets news award DES MOINES The Iowa Associated Press RadioTV News Association Sunday presented its 1962 news awards to KGLO Ma son City and KBIZ Ottumwa KGLO topped all Iowa AP broadcast members with 220 stories shared with fellow mem bers during the year News director Ken Kew re ceived the award in behalf of KGLOs news staff Bud Chaldy news director of KBIZ was honored for his work on two of the years biggest stories the Centerville plane crash and the Gayno Gilbert Smith manhunt North lowans find life in shelter tolerable By KEN BERG GlobeGantte News Editor Fortyone men and five wom en stepped in from North Iowas subzero cold and set up house keeping in a 21 by 24foot cub icle buried 16 feet in the ground This was the start Saturday of a pioneer project in Iowa It was initiated to provide the Photos on Page 17 states expanding Civil Defense program with a nucleus of trained personnel to take charge of and manage its public fallout shelters in event of a nuclear war For 15 hours the 46 sat close ly together worked closely to gether and slept closely They learned that uich joint efforts would save lives and insure a livable tomorrow had the emergency been real The group made up mostly of strangers came from farsight ed communities which had had basements and corridors of their bestconstructed buildings desig nated as public shelters Forest City Fertile Northwood Clear Lake Mason City Thornton and Rockwell all were represented Sponsoring the project was the Ccrro GorOo CountyCity of Mason City Civil Defense unit under the general direction of deputy director Jim Francis The exercise at the Mason City Municipal Airport actually cov ered a 24hour period Nine hours of classroom discussion and orientation preceded the overnight stay in the shelter beneath the new Federal Avia tion Agency building It was the first time in Iowa that such shelter manager trainees experienced anything more than a two or threehour confinement But realism is what the directors of the session wanted From the time warning of an imminent nuclear attack was sounded to when the door clanked shut behind the last one in the shelter it was just a story of making do Beds merely were blankets rolled out on the hard tile floor The only food was dry crackers The only beverage was water rationed on the basis of a quart a day for each person The crackers and water had been stored in the shelter earlier as they will be in each of the shel ters already marked Fire and police teams were formed a communications net work established and health and sanitation measures tests for radiation and the assigning of supply safety and maintenance squads were carried out For morales sake there was a time for prayer and a time for song There was first aid to be administered the hys terical to be calmed and the hoarders supply of chocolate to be confiscated and divided equally among all Despite the grimness aus terity and hipgrinding incon veniences the shelter stay was the highlight of the session For there also was levity not unlike that found in Scout camp or an Army barracks Toilet facilities were primi garbage can discreetly placed in an alcove and above it a sign His AND hers A makebelieve mouse causing consternation in t h c womens boudoir A cry out of the dark from someone stepped upon by another on his way to THAT alcove followed by a muttered apology Sorry but I forgot to put out the cat Lucille Dustin executive sec retary of the Mason City YWCA described the shelter stay as wearisome but a fins experience Her remark was echoed by the four other fe male trainees Jo Gilbert of the Red Cross Dorothy Plagmann and Mildred Hermundstad of Mercy Hospital and Ramona Colson secretary in the Civil Defense headquarters The only concessions to fovt were heat and intermit tant electric lights on the the ory that these utilities probably ;