WEDNESDAY. APR
L 8, 1959
Lawre
For Hi
cG (i1))---Gov. David L. Lawrence tenaciously
i o a no-compromise stand on his plan to hike
tax to 31/ 2 per cent and remove exemptions
nd auto trade-ins.
pted in princi;
HARRISBU '
clung yesterday
the 3 per cent sal
on beer, liquor a]
But he accel
s May
m Tax
Vet Bon
Come Fr
On Ciga
ettes
HARRISBURG VP) A voter
approved plan to pay some $l5O
million in a state bonus to Ko
rean War veterans moved a step
closer to reality in the Senate
Tuesday.
Senate committee approval was
stamped on a measure that would
add a penny-a-pack to the state
tax on cigarettes to finance the
bonus payment for an estimated
330,000 Pennsylvania Korean War
veterans.
"The cigarette tax bill will pass
next week," predicted Sen.,James
S. Berger, Republican floor lead
er.
The tax proposal, which would
raise the present cigarette levy to
six cents a pack, would have to
be returned to the House after
Senate passage for agreement in
minor changes.
Berger said both bills will be
brought up for final votes in the
Senate next Wednesday. If the
House agrees the same day to
the Senate changes in the tax
measure, the bills could reach
Gov. Lawrence's desk by Wednes
day.
However, officials of the Mili
tary Affairs Department warned
those eligible for the bonus
against expecting to receive their
payments before August at the
earliest.
Under the plan, each veteran
would be paid $lO a day for do
mestic service and $l5 a day for
foreign service up to a maximum
of $5OO.
Employment
1 Million in
WASHINGTON (/P)—Employment rose over one million
in March whil
substantial im
unemployment declined almost 400,000 in a
rovement in the nation's job picture.
were about double the normally expected
rovements. They reflected a sizable dent in
The chang• l
springtime im
the idle-worker
been the only m
the natian's rec:l
These are the
ernment job fig
Tuesday:
Employment ;•
106,000 from Feb ,
1,517,000 increase
year.
roblem that has
jor bad spot in
ion recovery.
exact new gov
res, announced
3,828,000. up 1,-
ary. This is a
over March last
nt 4.362.000.
am February.
less than in
Unem plorn
down 387,000 f
This is 772.000
March 1958.
The figures, al o showing a rise
in the available work force, fol
lowed rosy pred ctions by Presi
dent Eisenhower land his Cabinet
members that the new data would
be gratifying to all Americans.
The March unemploymt,;lt
improvement was the best since
1950, the employment improve
ment the best since 1951.
Union leaders minimized the
ACE MEETING
GRANGE
• ddivh
LAYROOM
t Children Read" -- Dr. Murphy
Refreshments
elementary education majors invited
keeps Plan
in Sales Tax
ple a Republican proposal to
create a legislative watchdog com
mittee on state spending.
This was one of the conditions
recently listed by George I. Bloom ,
who as Republican state chair
man said, if accepted, could lead'
to a breakdown in solid GOP op
position to the sales tax.
"If it was sort of a punitive
expedition or a committe of ha
rassment, I wouldn't be for it,"
Lawrence told his news confer
ence. "But if the committee is in
tended to curb reckless spending,
it would be all right."
Lawrence made it plain that
Rep. Stephen McCann, Demo
cratic floor leader, didn't speak
for the administration in telling
'newsmen Monday night that he,
McCann, had given up on the
15264 million sales tax boost in its
!present form.
Lawrence said he would seek
out by Monday the Republican
imembers of a bipartisan Tax Stu
dy Committee in a new effort to
, obtain their help in soliciting
House GOP votes for the sales
(tax.
The governor also agreed in
principle, although expressing
reservations, to other spending
curbs proposed by Bloom in a
speech at Allentown• Saturday.
One would limit state spending
in any three-month period to one
eighth of the appropriation re
ceived by a specific department.
This is intended to stop whole
sale expenditures toward the
close of the two-year fiscal period.
The other would write into law
;a specific prohibition against in
' creasing relief allowances that
'result in the necessity of passing
I deficiency appropriations to keep
!the program going.
Rises
March
2hanges, saying they were chiefly
seasonal and failed to provide any
cause for celebration.
George Meany, AFL-CIO presi
dent, said that despite what he
termed Eisenhower administration
"ballyhoo" the idle total still is
the highest for any month of
March since World War 11, except
in last year's recession.
Meany said the AFL-CIO in
tends to make it clear at a rally
here today, of over 5000 union
leaders and idle workers, that
"unemployment is a problem
of people, rather than a mere
statistic." The conference is in
tended to draw attention to the
plight of the jobless.
Factory worker earnings rose
during March , to a record $88.62
a week, reflecting both more pay
and longer hours.
TONIGHT
THE DAILY COLLEGIAN, STATE COLLEGE PENNSYLVANIA
Hoffa May
Be Involved
In Payoff
WASHINGTON (P) A Sen
ate investigator said yesterday
Teamsters Union President James
R. Hoffa shared a $6OOO payoff for
helping one side in a tug-of-war
between rival jukebox operators
in Detroit.
This charge was made by coun
sel Robert F. Kennedy of the Sen
ate Labor-Management Commit
tee at the opening session of hear
ings on alleged mobster infiltra
tion of the jukebox industry in
Detroit, Hoffa's home town.
One witness testified that firms
he believed to be backed by the
underworld had taken over about
one-fourth of Detroit's 4000 juke
box locations generally the
more profitable ones.
There also was testimony by a
former jukebox union member
that Hoffa once tried without suc
cess to have him pay $5OOO to a
prosecutor to fix a false extortion
charge.
Kennedy said the $6OOO was
paid in the late 1940 s as salaries
to the wives of Hoffa and Bert
Brennan, one of Holfa's top aides
in Detroit.
The counsel described this as a
payoff from one union, allegedly
backed by an association of De
troit jukebox operators, for Hof
, fa's rejection of applications for a
Teamsters charter sought by a
rival group of jukebox men.
Skate Comes Back
After Arctic Trip
GROTO N, Conn. (P)—The
American nuclear submarine
Skate, the first ship ever to sur
face at the North Pole, returned
home yesterday after an historic
scientific and sentimental jour
ney.
"We learned," said the proud
skipper, Cmdr. James F. Calvert,
"that the arctic can be used by
the U.S. Navy in winter as well
as summer."
The mission of the Skate's sec-i
and trip to the North Pole, she
sailed under it last August, was
to compare ice conditions in the
arctic in winter with those of
summer.
The submarine, which left her
home berth here March 4, re
mained under ice for 12 days last
month and logged 3090 miles. She
surfaced 10 times, once right at
the pole.
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after . sh ave
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Unbalanced Budget
Hit by Economists
WASHINGTON (in—An influential business organization
declared yesterday a tax increase would be preferable to an
unbalanced budget in the government year starting July 1.
Championing the anti-inflation stand taken by President
Eisenhower, the Committee for Economic Development said
in its annual appraisal of federal
budget policy: "Any increase in
expenditures above the President's
budget should be matched by ad
ditional taxes."
Actually a tax increase should
not be necessary, said the CED, 2
privately supported research or
ganization of corporation heads
and educators. It held that farm,
housing, veterans and some other
outlays could and should be cut
while foreign economic aid is en
larged.
But if the net outcome of con
gressional actions this session
creates a prospective deficit for
fiscal 1950, "taxes should be
raised before Congress adourns,"
CED said.
The committee said that if more
federal revenue is needed in the
next few years, it probably will
have to come mostly from higher
taxes on low and middle income
consumers or from a ;eneral
sales tax.
A long and vigorous dissept to
the "General Trend" of the re
port was filed by former Sen.
William Benton (D.Conn.), chair
man of Encyclopedia Britannica,
Inc., who was a founding vice
chairman of CELL.
The presumption that full em
ployment will be approached this
year and that the budget will be
balarned "seems to Ale wholly
unrealistic an d unwarranted,"
Benson wrote. He held that a
balance should be deferred until
idleness of plants and manpower
are reduced to "acceptable" levels.
Legislature to Probe
Pittston Mine Distaster
HARRISBURG (A))—Gov. David
L. Lawrence Tuesday signed in
to law rush legislation appropri
ating $50,000 for a legislative
probe of a Luzerne County coal
mine disaster near Pittston last
Jan. 22.
The governor put his signature
on the bill less than an hour af
ter the Senate unanimously passed
the House-approved legislation.
Parliament
Cuts British
Income Tax
LONDON (/P)—The Macmillan
government slashed almost a
tenth off income taxes yesterday,
ibringing to rate to the lowest
(since prewar days.
I The move, together with cuts in
ithe taxes on beer and consumer
goods, is likely to increase the
Conservative party's chances of
!winning the next election, prob
ably in October.
Derick Heathcoat Amory, Mac
millan's chancellor of exchequer,
presented to Parliament an an
nual budget calculated to distri
bute about $1,120,000 worth of
relief to the most heavily taxed
citizens of the non-Communist
world. He said the government is
,out of the woods, financially
'speaking, but that the nation
must make its industries more
competitive in world markets.
"This is the springtime of op
portunity, not a harvest of the
prosperity," he observed.
The standard rate of tax be
comes $1.09 on each $2 80 of tax
able income.
The basic reduction amounts to
8.82 per cent. Expressed another
way, Britons now will have thrir
incomes taxed 38 3 / 4 per cent In
stead of 42 1 / 2 per cent. During
World War II the rate got as high
ris 50 per cent.
The new schedule starts June
7.
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222 W. Beaver Avenue
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PAGE THREE