FRIDAY. FEBRUARY 10. 1956
$360 Million Tax
Bill Fails in House
HARRISBURG, Feb. 9 (/P)—A 360 million dollar bipartisan ta x compromise col
lapsed dramatically in the House today in a dispute over Gov. Leader's role in supporting it.
Rep. Albert S. Readinger, House Democratic floor leader, sobbed openly in his seat
after House Republicans withdrew their backing of the income-sales tax package.
The GOP took the position Democrats failed to exact from Leader a promise he would
actually sign the package—not
merely let it become law without
his signature.
Readinger acknowledged that
such a promise was part of an
agreement drafted by an eight
member bipartisan tax compro
mise committee.
An emotion-packed episode saw
Readinger, who labored nightly
for a week to forge the frame
work of the compromise, break
down emotionally in tears upon
telling the House.
"Regrets Deeply"
"I certainly regret deeply the
developments that have taken
place in the past day. I think the
public is going to hold all of us
responsible." .
HARRISBURG. Feb. 9 (I1 1 )--
Th, House today postponed in
definitely a final vote on a bi
partisan sales-income lax pack
age.
The action came after the
Republican leadership wit h
drew its support of the 360 mil
lion dollar tax •package. claim
ing Goy. Leader "is playing
politics" in refusing to act posi
tively by signing the taxes into
law.
In a rare demonstration, both
Republicans and Democrats stood
in the House and cheered Read
inger for more than two minutes,
as he sobbed in his chair holding
his head in his hands.
There was no indication from
either side as to what will now
happen to the latest effort to
break the Commonwealth's 13-
month tax deadlock.
Crux of Dispute
The crux of the dispute is a
state law which provides that
when the Legislature is in ses
sion the wernor has 10 days in
which to sign or veto a bill after
it reaches his desk.
If he fails to act within 'the 10-
day period, the bill automatically
becomes law without his signa
ture.
Speaker Hiram G. Andrews (D-
Cambria), obviously disturbed at
the governor's t)ositioti, intoned
solemnly from the rostrum as the
tax bills were tabled indefinitely:
"The chair now commits the
tax problems of the Common
wealth into the special keeping
of the governor and his advisers."
Quake Startles
Western Coast
EL CENTRO, Calif., Feb. 9 (,P)
—A strong earthquake rumbled
out of Mexito and across Southern
California just after dawn today,
alarming thousands but causing
only slight damage.
The jolt and a series of lesser
shocks that followed could have
caused serious harm had it not
centered in a sparsely populated
area of Baja California, south of
the border.
It was felt by hundreds of thou
sands in an area of at least 250
miles south from Los Angeles to
Ensenada and 350 'miles east from
San Diego to Tucson, Ariz. There
were no reports of injury or death.
Most of the reported damage
was in the crop-rich Imperial Val
ley of which this community, 175
miles southeast of Los Angeles, is
the • hub. •
Atomic Plant Still Idle
SHIPPINGPORT, Pa., Feb. 9 (W)
—Picketing continued todgy .on
construction work for the first
commercial atomic - power plant
despite a back-to-work order from
the Steamfitters and Plumbers In
ternational Union.
:EU R.OPIE
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Eden Says British,
U.S. Are Closer
LONDON, Feb. 9 (A))—Prime Minister Eden came home today
to report British-American relations better than ever but he ad
mitted failure. to sway President Eisenhower to the British idea
of giving off-shore Chinese islands to the Communists.
Eden smiled confidently but looked tired on his return from a
two-week - swing to Washington and Ottawa.
He told newsmen at _London
Airport after a delayed Atlantic
flight that the only difference
which persists after his global con
ference with Eisenhower concerns
the disputed islands in the For
mosa Strait.
Without elaborating, Eden said:
"We were frank in expressing
our view and the Americans in
expressing theirs."
The British want Chiang Kai
shek's Nationalists to withdraw
from Quemoy and the other For.
mosa Strait islands. They contend
this would help keep the Far East
peace by creating a 100-mile water
buffer between Chiang's forces on
Formosa and the Chinese Reds.
Eden emphasized he and Eisen
hower reached agreement on ac
tion to preserve peace and se
curity in the Middle East, Europe
and Southeast Asia, an declared:
"I can assure you that the rela
tions between ourselves and the
United States have never been
closer than they are today."
AEC Announces Move
WASHINGTON (JP)—The Atom
ic Energy Commission announced
today it is going to allow indus
trial and other organizations to
use AEC facilities to do peacetime
atomic jobs of their own.
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THE DAILY COLLEGIAN. STATE COLLEGE PENNSYLVANIA
Old Home Loan '
Plan Supported
WASHINGTON, Feb. 9 VP)—A
House subcommittee called today
for a return to the no-down pay
ment terms for GI home loans. A
2 per cent down payment is now
required.
The 2 per cent requirement was
laid down last July 30 for loans
guaranteed by the Veterans Ad
ministration. The Federal Housing
Administration also upped the
down payment requirement on
loans it insures to 7 per cent from
5 per cent.
Those rstriction: remain in ef
fect, but last Jan. 18 the VA and
FHA eased other restrictions,
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Russians Say Balloons
Further 'Brink' Policy
MOSCOW, Feb. 9 (JP)—The Russians accused the United States
today of using balloons to further a "brink of war" policy.
The charge was made at a news conference organized with
such a flourish that it reminded foreign correspondents of the germ
warfare propaganda the Communists pushed during the Korean
War.
The Russians ignored a U.S
tests, to keep weather balloons
away from Soviet territory. The
Soviet spokesman insisted bal
loons recovered on Soviet terri
tory were designed only for aerial
reconnaissance for the U.S. mili
tary forces.
Big News Conference
The big news conference was
held at Spiridonovka Palace, of
ficial 'residence of Foreign Leonid
Ilyichev, Foreign Ministry press
chief, displayed to correspond
ents an exhibit of "captured" bal
loons strewn along the palace
driveviay.
It struck- the correspondents
that this show, complete with So
viet newsreel, television and press
cameras, was well organized and
the Russians were intent upon
not letting a propaganda plum
slip through their fingers.
Ilyichev Tells AU
Ilyichev told the correspond
ents:
"The balloons do not serve me-1
teorological reconnaissance, butj
were meant for aerial reconnais
sance. You can look at them. It
is evident that the balloons do
not have apparatus which is me
teorological in nature and could
measure humidity, air pressure,
temperatures, and so forth, but
do have apparatus which can
carry on aerial photography."
He said a great number of bal
loons were launched by the Unit
ed States and that American
press reports showed 500 were
launched by the 'U.S. military.
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Navy Reports
Successful End
Of 2 Rescues
WASHINGTON, Feb. 9 —The
Navy today reported thd comple
tion of two far-flung rescue opera
tions and disclosed a tremendous
air-sea search is under way for
the three-man crew of a bomber
missing since Monday off Jack
sonville, Fla.
Helicopters, seaplanes, subma
rines, amphibious planes and a
blimp converged on the missing
bomber area, which already has
been swept repeatedly by 45
planes and six surface craft.
"Mission accomplished" was re
ported in the rescue of all seven
fliers who had been missing in
the antarctice since last Friday,
and in the recovery from a Vene
zuela jungle of eight Navy and
Marine men forced down while en
route to help them.
The antarctic rescue was re
ported in a brief message from
the, task force there which said
"all hands safe and well." The men
were downed while flying from
Marie Byrd Land to Little Amer
ica. Their single-engined plane
was spotted last night by a Navy
search plane.
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PAGE THREE