PAGE SIX
Sales Tax Issue
Causes Confusion
HARRISBURG, Jan. 17 (/P) —As one development piled on top of another in both
chambers, Sen. Dent, Democratic floor leader, commented:
“It seems to be that what is now needed is a compromise not between Republicans
and Democrats—but between House Republicans and Senate Republicans.”
Smith said he felt the confusion could be ended in a moment if Gov. George M
Leader came out flatly in support of a sales.tax. He said
Overdue Airliner
Lands by Compass
Without Mishap
NEW YORK, Jan. 17 (IP) A
Northeast Airlines plane with 22
persons aboard landed safely at
LaGuardia Field after it was lost
and overdue two hours and 14
minutes. It had gasoline enough
left for only about 21 minutes.
The two-engined plane made it
here from Boston without lights,
radio or electrical navigational
equipment. Part of its flight was
through blinding snow.
The airliner’s electrical equip
ment failed shortly after it left
Boston at 4:56 p.m. There was no
way for ground stations to contact
it. Nor could it get its usual guid
ance from the ground.
. All the pilot had to navigate by
was his compass.
When the plane failed to arrive
at LaGuardia Field at its sched
uled time of 5:50 p.m., a radar
search was launched for it along
the coast.
The plane had enough fuel to
keep it aloft until 8:26 p.m.
Various reports of the airliner
were received from New England
points. The Coast Guard sent out
a rescue plane from New York to
search for the missing airliner.
However, at 8:12 p.m. the plane,
Northeast’s Flight 109, landed
safely.
VA, FHA Plan
Loan Extension
WASHINGTON, Jan. 17 (IP)—
From noW on home buyers who
obtain loans guaranteed by the
Veterans , Administration or the
Federal Housing Administration
may have 30 years to pay off the
loans.
This was announced today by
the VA and FHA, which last July
30 had cut the maximum permis
sible maturity on VA-guaranteed
and FHA-insured loans from 30
td 25 years. Stretching a loan over
five more years means smaller
monthly payments.
The joint FIIA-VA announce
ment continued:
“Although 30 years is' now the
maximum maturity of. govern
ment-backed home loans, the
final decision as to the terms of
the loans is subject to agreement
between the borrowers and the
private lenders making the loans.
Fulbright Gas Bill
Backed by Bridges
•- WASHINGTON, Jan. 17 (/P)—
Sen., Styles Bridges (R-N.H.)
threw his support today to the
controversial Fulbright natural
gas bill. He said he was acting
as an individual and not as chair
man of the Senate Republican
Policy Committee.
Bridges led off in a Senate
speech for Republican backers of
the measure in this second day of
debate, which some senators ex
pect may .drag on for weeks.
Dispute over the measure, simi
lar in most respects to one the
House passed last year, has been
marked by vigorous disagree
ments on whether it would end
federal regulation of the produc
tion of natural gas for interstate
transmission and what effect it
might have on consumers’ gas
bills.
Stock Market Improves
NEW YORK, Jan. 17 The
stock market made a modest
comeback today after its sharp
fall of yesterday.
Ht' The recovery was moderate and
-was based chiefly on strength of
;steels and motors, the two divi
sions that yesterday weakened
and pulled the entire market
“We ask the governor, before
this sales tax reaches a vote, to
say outright whether he will sign
it or veto-it. There’s no use in
voting for. a tax if the governor
is going td veto it.”
In the House Rep. Readinger,
Democratic leader, said his col
leagues would supply the neces
sary votes to help Republicans
pass a 3 per cent sales tax.
Preferred to Measure
He referred to the measure in
troduced last_March by Rep. He
witt (R-Indiana) for a 2 per cent
sales tax with food as the only l
principal exemption.
It was revised by the Ways and
Means Committee to 3 per cent
and Readinger estimated the yield
at about 400 million dollars be
tween next March 1 and the end
of the current biennium, May’3l,
1957.
- Readinger noted that the Sen
ate GOP rejected the governor’s
offer to approve a sales tax to
raise half of the Commonwealth’s
tax needs if Republicans in turn
would accept an administration
tax, probably a 2 per cent per
sonal net income levy.
Write Tax Plan
“You Republicans may write
any kind of tax plan you like by
offering amendments to it. If a
sales tax is to be passed, it will
be a Republican-sponsored bill.”
Smith, who is the organization
candidate for the GOP nomination
for auditor general, said there
would be no Republican votes for
a 3 per cent tax." .
Slain U.S. Missionaries
Attempted Self-Defence
PANAMA, Panama, Jan. 17 (/Pj
—A bullet hole in the windshield
of their plane indicated the five
U.S. missionaries who died at the
hands of savage Aucu Indians in
an Ecuadorean jungle last week
attempted to defend themselves.
Capt, Robert B. McGhee, Waco,
Tex., and Lt. James E. Claunch,
Tacoma, Wash., U.S. Army heli
copter pilots stationed in the
CSnal Zone who participated in
the search for the missionaries
reported the bullet hole today.
They said the evangelists were
armed with pistols. Indians of the
area are armed only with spears.
Postal Service Inquiry
WASHINGTON, Jan. 17 (/P) —
Hep. Frank M. Karsten (D-Mo)
has demanded an investigation of
why it takes the postal service
six days to deliver a letter a dis
tance of 20 blocks in Washington.
THE DAILY COLLEGIAN. STATE COLLEGE. PENNSYLVANIA
Rayburn Opposes
Hoover Proposal
To Create Post
WASHINGTON, Jan. 17 (ff>)
House Speaker Samuel Rayburn
(D-Tex) said today he thinks for
mer President Herbert Hoover’s
proposal to create a new post of
administrative vice president is
unconstitutional.
Hoover suggested Congress au
thorize the appointment of such
an official to take over from the
President some of the burden of
routine duties.
Hoover advocated the plan be
fore a congressional committee
yesterday after Eisenhower’s top
aide, Sherman T. Adams, had
written the committee that he saw
no need for creation of such post
but that the White House would
not object to it.
Hoover called at the White
House today and told reporters
afterward he had discussed -the
matter with Eisenhower, but only
to the extent that he feels news
paper stories on Adams’ letter
gave the impression that the bur
dens of the presidency already
have been sufficiently lightened.
That is not so, Hoover said, add
ing that “relief of the president’s
burdens has only begun.”
Hoover also tojd reporters
“there will be some important an
nouncements” in the next few
days dealing with reorganization
of the government.
SEC Clears
Ford Shares
NEW YORK, Jan. 17 (IP)—! The
public offering of Ford Motor
shares qt $64.50 apiece was
cleared by the Securities and Ex
change Commission late today and
dealings began immediately—at a
premium of around $4 a share.
SEC clearance was the last ma
jor step before the shares could
be sold. Formal offering will be
tomorrow morning, but under
writers said the offering actually
became effective with the clear
ance.
Sale of the 10,200,000 shares, set
for tomorrow morning, will net
$657,900,000, making it the biggest
common stock sale in history.
Foreign Aid Solution
Predicted by Dulles
WASHINGTON, Jan. 17 (/P)—Secretary of State John
Foster Dulles said today he is sure Congress will help solve
the problem of long-range foreign aid as a counter weapon
to Russian promises.
He is confident of that, he told a news conference, once
Congress understands what the administration has in mind.
'Soil Bank'
Bill Sent
To Congress
WASHINGTON, Jan. 17 (IP)—
Secretary of Agriculture Ezra T.
Benson sent the administration’s
new “soil bank” bill to Congress
today and asked quick action.
Sen. George D. Aiken (R-Vt) in
troduced the bill, described by
Benson in a letter to the senator
as designed to “help our farmers
in their valiant efforts to reverse
the severe five-year decline in
our farm economy.”
Meanwhile, Chairman Allen J.
Ellender (D-La) laid before his
Senate Agriculture Committee a
catch-all draft of proposals which
ha said “gives us something to
work on.”
Ellender explained there was
nothing final about this draft,
that it “has not received the sanc
tion of the committee or any of its
members.”
Both the administration bill and
the tentative Ellender draft con
tained proposals for what have
become known as the soil bank
approach to the problem of
mounting surpluses and declining
farm revenue.
Broadly, they call for retire
ment of much cropland from un
necessary production, with farm
ers who participate being given
rewards in cash or in the form
of commodities drawn from gov
ernment surpluses.
Sections of the Benson bill
would authorize both the tempo
rary acreage reserve proposal and
the longer range conservation re
serve previously urged by the sec
retary and President Eisenhower.
Brownell Gets Censure
ATLANTA, Jan. 17 (IP) The
Georgia House today voted to
severely censure’ and reprimand
U. S. Atty. Gen, Herbert Brownell
and the Federal Bureau of Inves
tigation for a recent investigation
of the Cobb County Superior
Court.
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W CLASS RING
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you are a Penn Stater. Tell the world with
your ring—and do it ROW.
& QSdljlttC
/ Cow
In the # A* Store |
WEDNESDAY. JANUARY 18. 1956
The administration is reported
asking for the authority to pledge
up to 10 ye’ars of economic aid
for specified projects, at a possible
cost of a billion dollars.
Leaders Opposed
Such congressional leaders as
Sen. Walter F. George (D-Ga.)
and Sen. William F. Knowland
(R-Calif.) have opposed the idea.
It would be a departure from the
practice of limiting pledges of aid
to the amount Congress appropri
ates each year.
Dulles said he was aware of ob
jections in Congress, since one
session cannot'bind a future Con
gress on appropriations. However,
he recalled that the government
found a way around this obstacle
in the Marshall plan of European
aid.
The Marshall plan method was
adoption of the principle of con
tinuing aid. It was left up to Con
gress each year to provide the
funds.
Hoover Meets Senate
Undersecretary of State Herbert
Hoover Jr., met in closed session
with the Senate Foreign Relations
Committee more than an hour this
morning.
In view of the opposition from
George and others, Dulles was
asked at his news conference whe
ther the administration intends
to drop the idea of long-term com
mitments.
He said in reply it was vitally
important to make the world un
derstand that the United States
will continue some foreign aid
over a long period, rather than
engage in singleshot operations,
'Citizens for Ike'
Reactivate for Campaign
NEW YORK, Jan. 17 (ff) A
group close to President Eisen
hower reactivated the “Citizens
for Eisenhower” todajr with a
statement they are convinced he
will seek a second term if ill
health allows.
Retired Gen. Lucius D. Clay, an
intimate of Eisenhower, joined the
other organizers in declaring in a
letter to 50,000 former “Citizens”
workers convinced that under
present world conditions the
President will consider it his duty
to serve a second term, provided
he finds that his health will per
mit him to carry the load.”