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Newspaper
News
Location
Frederick, Maryland, United States of America
Date
Sep 15, 1954
Page
9
The new budget lowers defense outlays by three billion to 41.9 billion for fiscal 1955, versus 44.9 billion planned. Total spending is set at 64 billion, down from last year and far below peacetime peaks, while tax revenue shortfalls widen the projected deficit and lower expected net revenues to 59.3 billion.
Washington reports a sharp cut in defense spending alongside a projected fiscal year deficit of 34.7 billion dollars. The Budget Bureau released a summer budget review showing a 1.8 billion dollar year over year deficit increase and a 1.7 billion higher shortfall than last year. Treasury Secretary Humphrey described the deficit as an interim figure while pledging ongoing efforts to improve estimates. He spoke after returning from a Denver NSC meeting with President Eisenhower and other officials.
Dorothy Dillon Hicks testified before a grand jury in La Plata while a report on the investigation into the death of her paraplegic husband Lewis Hicks was promised. The jurors later returned seven indictments on unrelated larceny cases, with two not connected to the Hicks inquiry.
Police initially called the death accidental after finding the car throttle taped open and other clues suggesting homicide. Mrs. Hicks testified as a material witness with immunity, with a five day order extended briefly. she appeared in court in a different outfit each day, while her companion James W. Tremard and his wife accompanied her home. Cancer is not contagious.
The Navy plans to move the 45,000 ton aircraft carrier Midway and 16 destroyers from the Atlantic to the Pacific over four months to equalize forces. A spokesman cites reduced unit shifts and less disruption to sailors' families as primary reasons, with the 7th Fleet pledged to defend Formosa amid Communist bombardments near Quemoy.
A Navy spokesman outlined plans to reassign destroyer squadrons between the Pacific and Atlantic fleets, with the 28th and 18th squadrons slated for transfer. He noted five squadrons have moved between oceans in recent years and that Admiral Carney stressed longer preplanned ocean dwell times. Private industry spends about 140 million dollars yearly on agricultural R and D, while public expenditures total 107 million.
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