THURSDAY. M
15, 1958
se OK's $3.6 Billion Foreign Aid
Bill Now
Ike to As,
Will Go to Upper House;
for $339 Million More ,
TON (?P)—The House defeated all attempts to
o President Dwight D. Eisenhower's foreign
-sterday and finally approved $3.6 billion for
starting July 1.
s on a rolleall vi
WASHIN e
cut deeper in'
aid program y
the fiscal year
Passage w.
OK's
Send
e Of
Increa
Postal
Rates
WASHINGTO
House conferee•
ished work on a
increasing posta
(EP) Senate
last night fin
compromise bill
rates $530 mil-
lion a year and
500 thousand
$257 million an
I aising pay of the
ostal employes
ually.
The bill woul. boost the first
class letter rate to four cents as
compared with tie present 3-cent
stamp which been in effect
since 1932. President Eisenhower
asked for five cents on out-of
town mail.
Air mail would be raised from
the present silt to seven cents.
Post cards would go up from two
to three cents.
These hikes in first class rates
would take effect one month
after the end of the month in
which the bill is signed by Eisen
hower.
The bill is still subject to 'final
approval by Senate and House
before going to Eisenhower.
It would raise second class
rates on newspapers and maga
zines by 60 per cent on the ad
vertising portion of a publication
and 30 per cent on the reading
portion.
These would take effect in
three 20 and three 10 per cent
annual jumps, the first being Jan.
1, 1959.
The pay increases for postal
workers in the bill would amount
to 10 per cent for the great bulk
t the employes, those in the first
six grades, 9 per cent for those
in grade seven, and 74 per cent
for the higher-level employes.
The Eisenhower administration
recommended a six per cent pay
increase. But there had been in
dications it would go one or two
percentage points higher.
Clark Praises Bill
For Area Redevelopment
WASHINGTON (A))'— Sen. Jos
eph S.- Clark (D.-Pa.) expressed
elation Wednesday at Senate pas
sage of the area redevelopment
bill and said "I fervently hope
that the House will quickly follow
our • example so that this much
needed legislation can become
law as quickly as possible."
Clark is a co-sponsor of the bill,
which would provide $375 million
for federal loans and grants to
help industry provide new jobs
in chronically depressed. areas.
Pennsylvania's Republican Sen.
Edward Martin voted against the
bill. -
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I
ote of 259-134.
The bill now goes to the Senate.
Final passage climaxed three
days of sometimes hot debate
over America's foreign policy.
The bill is still $339 million be
low what President Eisenhower
said was the minimum needed to
keep America and the free world
strong. The administration plan-'
ned to push in the Senate to get
back some of money.
The recent wave of anti-Ameri
can demonstrations in South
America and the Middle East,
where millions in U.S. aid has!
been distributed over the years,
apparently cost the program little,
if any, support.
Most House members ap-'
peared to agree with Eisen
hower, who fold his news con
ference Wednesday that many
developing countries have eco
nomic difficulties and have to
have aid.
Voting for the new measure
were 150 Democrats and 109 Re
publicans. Seventy-six Republi
cans and 58 Democrats opposed it.
The House refused repeatedly to
go beyond the reductions recom
mended by its Foreign Affairs
Committee. Mutual security funds
were cut $1 billion dollars in 1957
and more than that in 1956.
More cuts may be made, how
ever, when Congress considers
the money bill for foreign aid. The
bill passed today is only an au
thorization measure. setting the
ceiling for foreign aid spending.
McGonigle Pledges Aid
WILKES-BARRE, Pa. (W)—Ar
thur T. McGonigle, organization
backed candidate for the Repub
lioan gubernatorial nomination,
said yesterday relief must be giv
en, to homeowners hit by mine
subsidence damage.
He called for strengthened ef
forts to attract new industry to
the anthracite region.
Biggest Plunge of Year Hits
Market; Production Hits Low
NEW YORK (1-P)—The stock market had its sharpest
break of the year yesterday in heavy trading.
Profit taking on the recent climb to new highs -for 1958
combined with unsettling news
from abroad and about the Amer
ican economy were cited as fac
tors in the decline.
An estimated $2.4 billion was
WASHINGTON VP) Indus
trial production was reported
Wednesday to have slacked off
in April to the lowest point
since 1954.
shorn from the quoted value of
stocks listed on the New York
Stock Exchange based on the fall
in the Associated Press average.
Although the drop was the big-
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University Record Shop
Entre Nous Club Members
THE DAILY COLLEGIAN STATE COLLEGE PENNSYLVANIA
French Government Moves
To Curb Algerian Difficulties
PARIS VP)—The new French government moved firmly but carefully yesterday to curb
a French parachute general's seizure of power in Algeria. On the French home front it had to
cope with fresh rioting and subversive plot ting.
Premier Pierre Pflimlin assigned complete power in Algeria to Gen. Raoul Salan and told
after Gen. Jacques Massu took over in Algiers Tuesday night.
him to maintain law and -orde
About 40 Thousand rioters
with the backing of French
army rightist elements seized
government offices at the port
of Oran ;ast night. The leaders
of the mob identified them
selves with Massu.
The Premier announced last
night that Sal a n has made!
his first report. Pflimiin said he
is convinced the army in Algiers
will remain loyal to the Paris,
government.
In a major political • develop
ment, the Socialist party agreed
{ to enter Pflimlin's Cabinet to
strengthen his hand in dealing
with the Algerian situation.
The agreement was condi
tional. The Socialists asked
that Robert Lacoste, long resi
dent minister in Algeria, be
sent back to that post, and that
the Popular Republican Move
ment -leader, ex-Premier
Georges Bidault, also enter the
Cabinet.
Andre Mutter, designated as
Lacoste's successor, has not yet
gone to Algeria.
Pflimlin asked for time to con
! sider the Socialist demands.
The Socialists probably would
get several Cabinet posts, displac
ing some conservatives and it
was indicated the Socialist party
leader, ex-Premier Guy Mollet,
would become vice premier.
The second night of rioting
fashionable Champs Elysees in
the west to workers' quarters
around' the Bastille in the east.
Rioters defied a government
ban on public gatherings.
Gen. Charles de Gaulle, war
time resistance hero, left the city
during the day to return to his
country home outside Paris.
gest of '5B, this year has not pro
duced any really large day-to=day
price movements so yesterday's
decline was only moderately se-1
vere in the light of history.
Pivotal issues dropped from
fractions to more than a point.
The lower-priced, more specula
tive stocks, showed similar losses.
The latter continued to dominate
trading as they have in recent
sessions when they rose sharply.
It was a different story Wednes
day. Most of them declined. Nine
of the 15 most active stocks sold
for under 20.
Seniors, Class of 1959, who will be off campus
the first 8 weeks of fall semester 1958: Have
your LaVie portrait taken at Penn State Photo
Shop, 212 E. College Ave., May 12-24.
LaVie
CLASS OF 1959
Men: Dark coat, white shirt, dark tie
Women: Black pullover sweater
Ike
On
Blames Riots
Economics, Envy
WASHINGTON (11 3 )—President Dwight D. Eisenhower
blamed the anti-Nixon demonstrations in South America on
economic difficulties, envy of the United States—and prob
able Communist agitation.
Eisenhower told a news conference he'd like to do some-
Business Asked
To Support Bid
Of Lawrence
NORRISTOWN, Pa. (IP)—Mayor
David L. Lawrence of Pittsburgh
issued another invitation Wednes
day night for businessmen to sup
port his bid for the governorship.
The Demo craitc organization
candidate• urged "enlightened"
business management to reconsid
er what he said was its automatic
suppOrt of Republican candidates.
Meanwhile, Lt. Gov. Roy E.
Furman, who is opposing the
Pittsburgh mayor- in the primary
election next Tuesday, charged
that a Highways Department
truck driver had been fired be
cause he refused to buy a ticket
to a Democratic fund-raising din
ner.
He said Amos P. Aunspach was
dismissed from the Lebanon high
way shed May 2 "due to his re
fusal to be mated" (forced to make
political contributions).
Nixon--
(Continued from palle one)
He was greeted by the junta
president, Wolfgang Larrasabal.
Nixon's car was escorted by
motorcycle outriders. Five
truckloads of soldiers followed.
Meanwhile, 1000 U. & Marines
and paratroopers from U.S. bases
took up posts in Cuba and Puerto
Rico, about three hours flying
time from Caracas. They were or
dered there by President Dwight
D. Eisenhower to protect Nixon if
requested by the Venezuelan gov
ernment. The government gave
assurances it could handle the
situation, however.
Eisenhower followed up his or
der with a telephone call to Nix
on. He expressed concern for the
vice president's safety but was
told by Nixon everything was all
right and that Caracas was calm
and under control.
LaVie Staff
PAGE THREE
thing special for Nixon on the
vice president's return to the cap
ital today--maybe e•"en join in a
Lig welcome-home demonstration
at the airport—becauve he ad
mires Nixon's calmness and forti
tude and his courage under mob
attack.
Eisenhower likewise defend
ed sending troops info the Ca
ribbean, for Nixon's possible
protection, as the simplest pre
cautionary measure in the
world. He said the troops were
made available in case Vene
zuela asked for them and that
is all there was to it.
Eisenhower himself maintained
a calm in the midst of crisis at
titude during his half-hour ses
sion with newsmen, sometimes
cross-questioned his questioners
and even poking a bit of fun at
a couple of queries.
He began by saying current sit
uations in Lebanon and Algeria
are very delicate and can well be
very grave as they develop.
So to avoid the risk of com
plicating them, he said, ho
would make no comment be
yond: "We are watching them
closely."
Eisenhower touched on several
home front matters:
Cie said a decision will have to
be made soon on a possible in
come tax cut—something he has
resisted so far.
•He said he deplores the use of
federal troops to enforce civil
rights decisions, but declared he
had to use them at Little Rock,
Ark., because Gov. Orval Faubus
wouldn't enforce the law.
Eisenhower said he expects
agreement soon with this coun
try's allies on a reply to Soviet
I Premier Nikita Krushchev's re
cent proposal on technical talks
aimed at attending atom tests.
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