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Mason City Globe-Gazette (Newspaper) - January 31, 1963, Mason City, Iowa Iowa Guard reorganizes story on page HOME EDITION Governors million budget would be biggest ever for Iowa Troubles of Perez Jimenez Causes US to blush By RICHARD SPONG GlobeGazette Editoral Research Bureau Marcos Perez Jiminez fled Caracas with his family in a Venezuelan air force DC3 on Jan 23 1958 Now five years later he languishes in the Bade County Fla jail an extraditable alien charged by the Venezuelan government with complicity in four murders and embezzlement of several million dollars The Perez Jiminez affair has been a continuing embarrass ment in USVenezuelan rela tions The United States was overly friendly to the squat strongman during his decade of dictatorship The Eisenhower administration in 1954 awarded The newspaper that mokes oilNorth lowcins neighbors MASON GITY GLOBEG VOL 102 MASON CITY IOWA THURSDAY JANUARY 31 1963 10c a copy No 304 Potter OKd by Senate Tax post confirmed FROM OUR WIRE SERVICES DES Iowa Sen dwaiucu ate in a surprise move Thurs him the highest degree of the I suspended its rules and con firmed the appointment of for Legion of Merit rank of com manderinchief President Eisenhower praised him for constant vigilance before the problem of Communist infiltra tion A patriotic junta overthrew Perez Jiminez in the twoday coup five years ago Neverthe less the diplomatic passports on which he and his family traveled to the Dominican Republic were issued by the junta The family then obtained non immigrant visas to enter the United States temporarily pleasure In view of the sub sequent excitement in Latin America over the refuge af forded Perez Jiminez here it may be noted that these visas mer Sen Lynn Potter DCresco to both a short and long term on the tax commission Potter became the first ap pointee recommended by Demo cratic Gov Harold Hughes to win Senate approval Potter will assume his new duties Monday replacing Fred Quiner Des Moines Democrat who had been given an interim appointment by former Republi can Gov Norman Erbe last Septl Under an interim appoint ment the appointee serves only until 30 days after the next leg islative session convenes Pofter will serve out the term ending June 30 originally held j A 11 v v uugjiiaiiY ueiu Mere granted at the request of by John OConnor the Venezuelan ambassador in Point who resigned to become US District Court clerk for Northern Iowa He also will begin a new six year term July 1 For the short j term he will be paid at the rate allowed to enter on parole Thenf per ye When the new term begins his salary will be increased to Four other Hughes appoint ments still are pending before the Senate the Cuidad Trujillo When Perez Jiminez arrived at the West Palm Beach port of entry on March 28 1958 he was denied formal admission though on Jan 7 1959 after the pass age of almost 10 months with out any showing by the Vene zuelan goverment or the US State Department why he was inadmissible he was formally admitted on the temporary visa However the Immigration Service kept after PJ as he is called by both friend and foe and by Sept 8 1959 had suc ceeded in getting an order for his deportation Meanwhile the Venezuelan government in July 1959 had set the extradition pro cess in motion The extradition treaty be tween the United States and Venezuela lists the following as extraditable crimes Murder rape abortion bigamy arson counterfeiting forgery embez zlement kidnaping larceny perjury It specifically states that extradition is not required for any crime or offense of a political character nor for acts connected with such crimes or offenses Perez Jiminez wasj charged in Venezuelan courts with among other crimes embezzlement and murder The exdictator had been luxuriating in a resi dence in Miami while his case dragged through the US courts But on last Dec 12 the Fifth Circuit Court of Appeals in New Orleans ordered his arrest and the return of the bond he had posted That meant that he had to spend Christmas in jail a tragedy about which Marco himself Mrs Perez and the Perez daughters made much public lamentation The Perez Jiminez case will probably wind up before the US Supreme Court The family can afford high powered legal and public relations counsel The irony is that while that United States certainly wants neither Perez Jiminez nor the onus of harboring him Vene zuela probably doesnt really want him either His return a this time would only serve excite the growing number LYNN POTTER RECALLS FIRST scientist Dr Wernher von Braun studies an Extra edition of the Hunts ville Ala Times published 5 years ago Thursday to mark the success of Photofax Americas first earth satellite Explor er I was developed by Von Brauns team Weve come a long way in space in five years Von Braun said Atomic force complaint by U S stirs Canadians Hughes wields the ox Requests for funds slashed DES MOINES ally every department of state government felt the bite of the budget ax as Gov Harold Hughes slashed their requests for money Although Hughes came out with a proposed million a year an alltime high in state spending he lopped about million off the total requested by state agencies Most sharply cut was the de partment of public instruction where Hughes slashed mil lion from the million asked by Supt Paul Johnston Hughes rejecting as premature Johnsons proposal to adopt the foundation plan for state aid to schools decided to stick with the present multiple aid pro gram He called for nearly mil lion in various forms of state aid an increase of million over the annual budget for the current biennium Of the in crease proposed by Hughes million would go for addi tional general aid and mil lion for supplemental aid He also trimmed million from the million request of the board of regents lopping million from the budget million sought for the Uni versity of Iowa and another million from the universitys as sociated hospitals and labora tories Iowa State Universitys pro posed budget of million was trimmed million and Hughes sliced about 000 off the requested mil lion sought for the State College of Iowa GOV HAROLD HUGHES WASHINGTON AP The United States apparently taking sharp issue with Canadian Prime Minister John G Diefenbaker has declared bluntly that Canadas de fense forces should be equipped with nuclear weapons Although North American de fense systems using nuclear cap able weapons are necessary for effective protection against the problem in sharp simple sen Soviet bomber fleet will Soviet Unions nuclear bomber ences fleet the State Department said The Wednesday night the Canadian remain at least throughout this government has failed to come up decade a significant element in with a practical plan been hotly debated in the Parlia ment at and has Robert Frosts body cremated before rites CAMBRIDGE Mass The body of poet Robert Frost was cremated Thursday before private funeral services at Me morial Chapel of Harvard Uni versity where he formerly taught Only relatives and a few close friends were invited to the services for the 88year old silverhaired poet who died Tuesday Ottawa in become a Canadian domestic The nuclear weapons issue has rnent said An effective conti defense against this com roaf ic recent days problem in politics In such circumstances a US gov ernment declaration is highly unu sual In Ottawa there was wide spread speculation the US criti cism would spark a general elec tion call and a campaign fought on nuclear defense issues The statement issued by the State Department and delivered to the Canadian Embassy is also unusual because it is stripped of ordinary diplomatic language and lays down the Washington view of the North American defense mon threat is necessary The statement said that al hough the Western alliance needs more conventional forces conven Some progress in strike talks NEW YORK UPI Mayo Robert F Wagner announcec Thursday that several importan issues in the 55dayold news paper strike have been settled but iwo critical issues re main unresolved Wagner who initiated mara thon contract negotiations last Saturday reported the first progress in the strike deadlock in nearly two weeks after an 18 hour session with publishers newspaper unions and federal state and city mediators But he emphasized that the two sides are still a long way from settling this dispute Communists in his homeland tc of I ROYALTY ON TOUR LONDON Eliza beth and Prince Philip left win try Britain Thursday for the On the Inside Editorials Page 4 CubGazette 8 Society News 91011 Sporfs 1314 North lowa News 15 Latest Markets U T marvels 1C sunny Fiji Islands starting pointi of an eightweek tour that will Mason Clty News 1617 take them to Australia and Ncwj Clear News 1819 Zealand 1 Comics20 News in a nutshell FROM OUR WIRE SERVICES Orville Hodge is freed MENARD 111 Orville E Hodge who looted Illinois of million and dreamed of governing it was paroled after GVj years in prison The onetime state auditor who lived like a millionaire on embez zled funds said A man can only appreciate the value and luxury of freedom after he knows what it means to be deprived of it Another Yank killed SAIGON South Viet Nam Communist guer rillas shot and killed a U S Army captain in a clash in the coastal mountains about 300 miles north of Saigon The death brought to 55 the number of Americans killed in Viet Nam since the U S military buildup began in December 1961 Wonts testimony released Bourke B Hickenlooper RIowa has asked for the release of testimony on the 1961 Cuban invasion disaster given before the Senate Foreign Relations Committee Hickenlooper said he believes there are a number of unreconcilables in the testimony of top Kennedy administration offi cials Back up charge Hoffa told WASHINGTON A House committee invited Teamster president James R Hoffa to back up his charges that the Kennedy administration used pres sure to deny his union surety bonds required by fed eral law he Soviet strike force the state ional forces to effective are no alternative NATO or NORAD North lowa Mostly cloudy and warmer through Friday with scattered light snow freezing rain or sleet Thursday night Lows Thursday night near 5 Highs Friday near 20 t o w a Mostly cloudy and warmer through Friday with scattered light snow light freezing rain or sleet west and extreme north Thursday night Lows Thursday night 5 10 Highs Friday in the 20s Further outlook Variable cloudiness colder north Sat urday Minnesota Cloudy and warmer Highs Friday 1020 GlobeGazette weather data up to 8 amThursday Maximum 10 Minimum At 8 am Sunrise Sunset YEAR AGO Maximum 8 Minimum defense arrangements using nu clearcapable weapons systems NORAD is the joint USCanadian defense system against Soviet wmbers In Ottawa the Social Credit Party leader Robert Thompson called the US statement a bombsheH to say the least it could be the spark to topple the government Diefenbaker said Thursday the US State Department statement constitutes an un warranted intrusion into Cana dian affairs He said Charles Ritchie Canadian ambassador to Washington is being recalled to Ottawa for consultation People of all political persua sions in Ottawa generally felt the State Department went too far Nurses seeing double4 times IOWA CITY twins twins twins and more twins There were four sets of twin babies in the nursery at Mercy Hospital Thursday and doctors say another mother is expecting twins any day now There have been as many as three sets of twins in Mercy at one time but never until now four Hughes shaved the board of controls request for million by only about and in two instances recommended more money than the board had requested Hughes upped by the recommended budgets for the state schools at Glen wood and Woodward Hughes an ardent outdoor sportsman played no favorites with the conservation commis sion His proposed budget calls for per year to operate the states park system fish and game refuges and other recreational services The com mission now receiving has proposed an operational budget of Doctors amputate restored leg BOSTON UPI Surgeons Wednesday amputated the near lysevered left leg of William Hunt 37 which they had tried to restore in a sixhour opera tion Jan 15 An infection developed in the leg and internal hemorrhaging followed Wonts hike in taxes Liquor bill would help DES MOINES UP A record Iowa budget of million per year financed by increased personal and business income taxes le galizing liquor by the drink and a new tax on hotel and motel bills was proposed Thursday by Gov Harold E Hughes The governors recommenda tions for state spending in the two years starting next July 1 come to some million a year more han the present annual budget of million but about mil lion less than was requested by tho various departments and insti tutions Hughes said his budget would provide property tax relief in the form of increases in agricultural land tax credits for the rural citi zen additional homestead credit for the urban citizen and addi tional school aids for the benefit of all The Democratic governor his recommendations in a budget message delivered at a joint ses sion of the predominantly Repub lican Iowa House and Senate Hughes proposed 1 Collection of an additional million per year through taxes on tiquor by the drink increased cor porate and individual income tax es and imposing a new 2 per cent sales tax on hotel and motel serv ices The present general sales tax rate would remain unchanged at 2 per cent 2 Increasing state aids to schools by per year agricultural land tax credits by million annually and home stead tax credits by million a year 3 Boosting the annual operating budget of state educational insti tutions by million the Board of Control by million the De Public Safety by the administrative partment of and departments by million 4 Giving the State Department of Social Welfare million more per year of which mil lion would go to match federal aid nder the KerrMills program of per cent severed in an accident when he was pinned between two cars If the operation had been successful It would have been the first time a leg had been restored after being more than 90 per cent severed SAME White Flat Means No Vcatk If Past 21 Budget in brief BALANCE The alltime record million a year in state expendi tures is a balanced budget The million increase over the current budget of million will be met by increasing tax revenue by about million a year mostly through a boost in the individual income tax TAXES AND TO BE TAPPED Increase personal income tax 33 per cent by restoring full 100 per cent collection rate Yield million additional rev enue Increase corporation income tax 33 per cent from 3 to 4 per cent Yield million Extend 2 per cent sales tax to hotel and motel bills Yield million Windfalls yielding million including withholding system for personal income taxes monthly instead of quarterly remittance of saies faxes and plugging income tax loopholes License fees and 10 per cent tax for legalized sale of liquor bythedrink Yield Minimum of million PROPERTY TAX RELIEF About million or about 52 per cent of the million annual state budget would flow back to local communities through state aid to schools agricultural land tax and home stead tax credits EDUCATION State aid to public school districts increased 50 per cent to a total of million including agricultural land tax credits and direct aid Support of stateowned institutions of higher education boosted 13 per cent to million plus million for capital improvements Total for educational purposes million SOCIAL WELFARE Recommended million per year up million of which million would be Iowas matching fund to participate in the KerrMills federal aid program of medical care for the elderly Provides million increase in aid to dependent children but trims from the current budget for old ag assistance CAPITAL IMPROVEMENTS Recommends million per year for building programs including million for institutions of higher education million for state penal and mental health institutions mil lion divided between state fair national guard and capitol and public safety department Hunts leg was more than 90 medical care for the aged For all capital improvements he governor recommended million for the twoyear period ompared with appropriations of million for the current bien nium Educational institutions would million per year for tuilding programs compared to 1105 million annually for the cur biennium They had asked ill million for each of the next wo years Hughes estimated that legal liq uor by the drink carrying a 10 per cent sales tax and a li cense fee would bring the state 125 million a year The Legisla ive Revenue Study Committee istimated that such a measure vould produce million a year or the state and million for ocal governments The governor said his own fig Jre is so conservative that I think no reasonable person could question it He said he had ery reason to believe the revenue would be substantially greater than the budgeted amount that local governments also would benefit Hughes said he purposely set the estimate at a minimum be cause the matter is highly con troversial and to emphasize that law enforcement rather than revenue is the principal reason that our Hquor control law should be changed His biggest producers of higher revenue were personal income tax adjustments estimated to produce per year He urged raising the tax to the Icvei at which it was set before the legislature reduced it 25 per cent shortly after World War II This was estimated to net an ad ditional million per year He proposed beginning next July 1 to withhold the tax from paychecks and refund any over payment as the federal govern ment now does This he estimat ed would produce an additional 105 million annually from per sons who owe the tax but failed to pay it An additional tax bracket Mi ;