THURSDAY. JANUARY 6, 1955
Hoover ' Requests Extension
Of . ;..' : - '-eor!.-:ariizatioh Powers
WASI-UNGTON, Jan. 5 (JP) Herbert Ho, Ve/' today asked Congress to extend-. President Eisen
hower's reorganization powers and perhaps to put up a little more money for the .1-loover Commission's
studies on streamlining the government.
'Simultaneously a New York University report predicted the Hoover recommendations, soon
to start appearing, could be "far more controversial" than the first Hoover report in 1949.
The university study also reported ,a few un announced findings of the task forces set up by
former President Hoover to do the research spadework for his 12-member, bipartisan commission on
reorganization of the executive branch. These included:
1. The government carries on some 1,500 activities "which can be regarded as competitive with
Democrats
Promise
Cooperation
WASHINGTON, Jan. 5 (W)
The 84th Congress opened today
ulider Democratic control, with
its new , leaders saying they will
try to do business rather than bat
tle with President Dwight D. Eis
enhower and the Republicans.
As Rep. Sam Rayburn of Texas
put it. in a two-edged speech upon
taking over again as speaker of
the, House:
"Just because another party
holds the executive branch of gov
ernment. that does not mean we
are going to look on legislation
from a partisan standpoint."
Recalls Charges
Then, with this bow to harmony,
R ay b urn indignantly recalled
charges by some GOP orators in
the 1954 campaign. He said that
Democrats "are not an accusing
kind of people" who charge otherS
with subversion and being "soft
on communism."
While Democrats cheered, Ray
burn declared:
"We're not going to indict peo
ple en masse. No Democrat is
going to talk like that without
being frowned upon, or repud
iated, by me:"
Fully Aware of Prizes
Practical politicians to the last
man, the senators and representa
tives were fully aware of the po
litical prizes at stake in the 1956
presidential year, and the effect
their actions will have.
The very first bill officially in
troduced in the 84th Congress to
day could cause a real ruckus.
Offered by Rep. 'Cooper (D-
Tenn), it would extend the recip
rocal Trade Act another three
years and give the President , au
thority to cut tariffs by five per
cent • a year. Eisenhower asked
just that of the 83rd Congress, but
didn't get it after some leading
GOP members balked.
Panama Police
Jail Suspects
PANAMA, Jan. 5 (2P) Secret
police and national guardsmen
have jailed 70 suspects in Panama
City and an unannounced number
outside the national capital in the
all-out hunt for the killers of Pres
ident Jose Antonio Remon.
One of those arrested, ex-Presi
dent Arnulfo Arias, was trans
ferred today from his coffee plan
tittion to national guard head
quarters at David, the capital of
Chiriqui Province 200 miles west
of here.
Authorities apparently decided
against bringing Arias to .?ananla
City, ,because they feared his pres
ence might touch off demonstra
tions. A chief political foe of the
slain President, Arias has many
supporters here as well as political
enemies.
Police said they, were holding
for questioning in the killing an
American identified as Marvin
Lipstein, who was arrested at the
airport Monday night.
New Congress Acts
WASHINGTON, Jan. 5 (A")
One of the first bills introduced in
the new Congress today would
raise the pay of members of Con
gress from $15,000 to $25,000 per
year.
It was introduced in the House
by Chairman Cellar (D-NY) of
the House Judiciary Committee.
those undertaken by private in-
dustry."
One Billion a Year
2. Businessmen spend one bil
lion dollars a year filling out fed
eral queStionnaires, of which "a,
large proportion are filed and for
gotten."
3. Flood control projects have,
upon occasion, cost more than the
value of the land protected.
4. The government buys 800,000
Pounds of tomato products on the
West coast and ships them to the
Atlantic coact. It also buys 700,000
pounds of the same products on
+he Past ^oast and ships them to
the Pacific.
5. In one case it cost a half
million dollars to fire single fed
oral employee. But 26 per cent of
all federal employees quit the
c;overrrn ent every year.
Files Progress Report
The 80-year-old Hoover filed
with Congress, at the moment of
its convening today, a progress
report disclosing that the commis
sion will begin issuing instalments
of its massive renort "within the
next few weeks."
He reauested, upon unanimous
vote of the commission. that Con
gress extend for two more years
the Reorganization Act. The law.
which expires April 1. empowers
the President to file plans - for the
merger, abolition and reorganiza
tion of federal agencies.
Such presidential plans become
law automatically if neither house
of Congress reiects them after 60
days' consideration.
Russia, Yugoslavia
Sign Trade Pact
MOSCOW, Jan. 5 (?P)—Russia
and Yugoslavia, bitter foes in the
final years of the Stalin era, sign
ed a 20 million dollar trade agree-,
ment today.
The pact, to run for a year,
marks a further step by Premier
Georgi Malenkov's government to
normalize relations with Presi
den:, Marshal Tito's Communist
nation, which was ousted from
the Cominform in 1948 in a row
over party politics.
The pact is a barter agreement
under which Yugoslavia will ex
port chiefly meat, canned meats,
tobacco and soda and Russia will
send her cotton, crude oil and
gasoline.
There had been no formal trade
links between' the U.S.S.R. and
Yugoslavia for - six years.
THE DAILY COLLEGIAN StATE COLLEGE. PENNSYLVANIA
4 Women Among
New Lawmakers
WASHINGTON, Jan. 5 (IP)—
Solemn, serious-eyed and maybe
just a bit nervous, four new wom
en lawmakers raised their right
hands today and were sworn in
as members of the 84th Congress.
Along with the 12 who have
served before, they gave the cap
itol its greatest feminine repre
sentation in history. And the la
dies could also count Hawaii's
nonvoting delegate, Mrs. Betty
Farrington, in their fold.
The newcomers, all Democrats,
were Reps. Iris Mitch of Georgia,
Edith Green of Oregon, Martha
Griffiths of Michigan, and Coya
Knutson of Minnesota.
$60 , 000 Beqinning
TACOMA, Wash., Jan. 5 0 3 )—
N lone, calm bandit held up the
Parkland branch of the National
Bank of ..Washington today and
wished everybody a "Happy. New
Year" as he walked out with ap
proximately $60,000.
t -ruse investigators Hit
'Questionable Practices'
WASHINGTON, Jan. 5 (!P)—House investigators today said a
"wide range of questionable practices" in handling employee wel
fare and pension funds warranted a continuation of the probe by
the new Congress.
The interim report by a
. House Labor subcommittee also urged
that fund trustees be required to
make a tighter accounting to the
Internal Revenue Service
The group, headed in the 83rd
Congress by - Rep. McConnell (R-
Pa), said the Revenue Service al
so should demand more informa
tion from trust funds claiming
tax-exempt status. Tax law and
regulations already require fund
trustees desiring
,tax-exempt-sta
tus to file certain data every year.
The subcommittee said it could
not make definite legislative rec
ommendations because of its in
ability to get at proper records.
Among what it called "notable
abuses" the subcommittee found:
On the part of some employers
a lack of interest and "fear" of
asserting their rights in joint em
ployer-employee administration of
welfare funds.
Some employer contributions
negotiated by "throats arid vio
lence." "Irregular practices by
some insurance companies," in
cluding excessive charges and
Ladejinsky Named
To Viet Nam Post
WASHINGTON, Jan. 5 (W)—Wolf Ladejinsky, fired by the
Agriculture Department as a security risk, got a key job today with
the Foreign Operations Administration. He will work on land re
form in Viet Nam, helping to fight off Communist pressure there.
The appointment - was announced by FOA chief Harold E. Stas
sen. It came after the White
House intervened to end a contro
versy which broke out when La
dejirisky was removed Dec. 16
from his post as agricultural at
tache in the U.S. Embassy at
Tokyo
Ladejinsky, Russian-born but
now a naturalized American, had
security clearance from the State
Department,- but when his post
was shifted to the Agriculture
Departnient by act of Congress
last year Secretary of Agriculture
Benson ruled that he could not
be retained. Benson acted on the
advice of his security officer,
John Glenn Cassity.
The, security conflict between
Agriculture and State brought de
mands for a congressional investi
gation, and in the end the White
House stepped in.
Immediately after Stasson's an
nouncement today, James C. Hag
erty, presidential press secretary,
issued this statement:
"The White House asked the
heads of departments and agen
cies involVed to use their best
judgment in working out this
situation and we believe that
judgment has been exercised."
The new responsibilities given
Ladejinsky was in effect a rejec
tion of the security assessment
made by the Agriculture Depart
ment.
After FOA's announcement,
Benson told a news conference
he still feels he made the "cor
rect" decision in refusing to re-
Commission payments.
"Irregular conduct by insurance
brokers and consultants, includ
ing collusive arrangements ' with
insurance companies and union
officials to obtain business."
"Trustee conduct ranging from
laxity to breach of faith" and
"squandering of assets by admin
istrators of so-called self-admin
istered noninsured funds."
"Discrimination against non
union employees through the re
quirement that eligibility for
benefits is invariably conditions
on being•a union member in good
standing" despite employer pay
merits on all employees.
tain Ladejinsky as as agricultural
attache.
A reporter, saying FOA had
employed Ladejinsky with White
House approval, asked whether
Benson considered this to be "a
rebuke to you."
Benson shot back: "You'll have
to draw your own conclusions."
Stassen announced that FOA
reviewed Ladejinsky's file and
found him. "eligible for certifica
tion for security and loyalty." An
FOA spokesman said the review
included "a full field background
investigation by the FBI." Stas
sen has said previously that FOA's
security requirements are 'high.
Ruiers Arouse
Controversy
' WASHINGTON, Jan. 5 (P)—
President Dwight D. Eisenhower's
order curtailing certain future
benefits for ex-servicemen went
under attack as new bills poured
into the House today.
Rep. Edith Nourse Rogers (R-
Mass), outgoing chairman of the
House Veterans Affairs Commit
tee, introduced a measure which
would completely knock out Eis
enhower's controversial Jan. 1
order.
Rep. Teague (D-Tex.), the new
chairman., sponsored a bill to pro
vide that men already in service
h- the end of this month would at
least keep on accruing education
al benefits at Le present rate.
Prospects seemed brighter for
the comparatively mild Teague
bills than for Mrs. Rogers' more
far-reaching measure.
In addition„ Teague introduced
a bill to provide a free colleg,e
education for the estimated 100,-
000 chlidren whose parents died
in World War II or Korea battles.
FBI Reports New High
In 's4's Ser i ous Crimes
WASHINGTON (W)—FBI Direc
tor J. Edgar Hoover's year-end
report to Atty. Gen. Brownell
today said serious crimes in the
United States climbed 5 per cent
to a new record high in 1954.
Hoover said this occurred in the
face of increased police efficiency.
The report said that although
homicides and auto thefts de
clined in 1954, "the past year
will record a new high for the
past 10 years in crimes of rob
bery, aggravated assault, rape,
burglary and larceny," along with
sharp increases in the looting of
banks by raid or embezzlement,
frauds against the government,
and theft of government property.
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