SATURDAY. JANUARY 19. 1963
JFK To Visit Germany
In Spring European Trip
WASHINGTON (A 3 ) —President
Kennedy extended his European
travel plans yesterday to. include
West Germany, bypassing France’s
Charles de Gaulle.
The White House announced
that Kennedy has accepted an in
vitation from Chancellor Konrad
Adenauer for an informal 'working
visit to Bonn. Kennedy is expect
ed to stop at" the West German
capital after . going to Rome in
late May or early June.
“It is not contemplated that the
President will make any other
stop in Europe during this trip,”
the White House announcement
added.
THIS APPEARED to rule out a
Kennedy meeting this spring with
De Gaulle, the French president
whose unbending figure stands
athwart major Western unity un
dertakings rated of great impor
tance by Kennedy.
De Gaulle has rejected Kenne
dy’s Nassau, Bahamas, proposal
for a multilateral. North Atlantic
Treaty Organization atomic force.
And France has posed the out
standing obstacles to British en
try into, the European Common
Market thus opposing another
Kennedy aim... ' •
With the other Atlantic allies in
virtually solid array against
France on these matters, ...Kenne
dy’s omission of Paris on his
forthcoming trip underscored the
isolation of De Gaulle's position.
There has been some expecta
tion that De Gaulle would visit the
United States sometime this year.
U.S. authorities said nothing has
been, worked out on this, so far. •
KENNEDY'S TRIP to Bbnn will
have a significance beyond ' a
mere farewell call on Adenauer,
who is due to step down from of-,
fice at the end of this summer/ :
U.S. authorities belieye the pres
idential appearance will signify
continued U.S. support for West
Germany' during an important
transition period. Adenauer’s re
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THE DAILY COLLEGIAN. UNIVERSITY PARK. PENNSYLVANIA
tirement will bring in a. new West
German leadership for the first
time since the aging chancellor
took the reins after World War
11.. ' •
Presidential press secretary Pi
erre Salinger said Mrs. Kennedy,
who vacationed in Italy last year,
will accompany the President to
Rome.
AFL-CIO Labor Leaders Oppose
Pennsylvania, N.Y. Rail Merger
• PHILADELPHIA (AP) Four
eastern Pennsylvania AFL - CIO
labor leaders testified yesterday
they opposed a merger of the
Pennsylvania and New York Cen
tral railroads.
Voicing strong opposition at
public hearings of the Interstate
Commerce Commission were Nor
man Blumberg, Philadelphia; Le
roy Clayton, Allentown; Harold S.
Miller, Bethlehem, and Charles
W. Seyfert, Reading.
Blumberg is president of the
Philadelphia Council AFL - CIO
which claims 200,000 members.
Miller is" recording secretary of
the AFL-CIO Union Council of
Northampton County, Pa., and
Warren .County, N.J. Clayton is
recording secretary of the Lehigh
Central Labor Council. Seyfert is
president • of. the United Labor
Council of Reading and Berks
County. ■,
Blumberg told the ICC_exami
ners' the merger would threaten
Philadelphia’s rail service' as well
as the growth of the port of Phila
delphia. - ,
“Reduced freight service as a
result .of the merger will result in
higher overhead costs on fhe
Pennsy lines,” Blumberg said iri
a statement.
Traffic,' he said, would be di
verted, from the port of Philadel
phia to New York.
Blumberg also said the' PRR. re
fused to say where the headquar
ters of the'merged road would be.
Scranton Administration Foresees
Multi-million Dollar Operating Deficit
HARRISBURG (/P)—The Scran
ton administration predicted yes
terday a multi-million dollar
operating fund deficit during the
current fiscal year.
Gov. Scranton told his first
news conference he has ordered
“a stringent economy program.”
Through such a program, he
He declared if it is moved out of
Philadelphia the city faces the
possible loss of more than 3,300
jobs.
’ Seyfert said Berks County in
dustries would suffer from reduc
tion in rail service that would fol
low a merger.
“If this merger iS approved,”
said Seyfert, , “our rail service
wpuld be affected because the
Pennsy would become a virtual
branch line of the New York Cen
tral, and the Reading would be
faced with bankruptcy.”
Clayton said the Jersey Central,
Reading and Lehigh Valley rail
roads, already beset by financial
difficulties would be hurt badly
by the merger.
"• Miller,'noting there are 11,600
unemployed workers in the Allen
town - Bethlehem - Easton labor
market, said, “All of the railroads
within Northampton County are
short-line railroads dependent on
the major carriers for more than
half of their freight traffic.”
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said, the administration hopes to
reduce an anticipated deficit of
$32 million to $26 million by June
30, when the fiscal year ends.
The prediction Immediately
was challenged by Democratic
State Chairman Otis B. Morse.
“The fact of the matter is that_
the budget should be in balance"
by the end of this fiscal year,”
he said in a statement, “with the
distinct possibility of a small
surplus.”
The Republican administra
tion’s estimate—only three days
after taking over from the Demo
crats—ran directly counter to
statements by former Gov. Law
rence’s top fiscal advisers that
the budget should be in balance.
“In three short days,” Morse
said, “the new Republican admin
istration has converted a $lO mil
lion surplus at the end of Decem
ber into a $32 million deficit by
June 30th. That takes some do
ing.”
Scranton’s estimate of a deficit
was made up of two parts: A rev
enue department revised projec
tion for the last six months of
the fiscal period showing receipts
about $lB million below original
estimates and a budget office cal
culatiomthat $24 million in addi
tional spending would be needed
to see the state through the re
mainder of the fiscal year.
This $42 million total would bp
offset by the $lO million cutback
in spending by the Lawrence ad
ministration before leaving office.
Scranton said he hoped to cut
another $6 million through his
A
ROOM
new program of economics in
operation.
He also ordered his department
heads to cut their 1963-64 budget
requests in an effort to reduce the
proposed cost of operations by
about 20 per cent.
Scranton also ordered a freeze
on jobs .except where people have
to be hired to continue essential
functions.
Kennedy Requests
Aid for Education
WASHINGTON (AP) The
Kennedy administration’s new ed
ucation-aid proposal will be a
five-year program proposing ex
penditures of more than $6 billion,
informed sources said yesterday.
President Kennedy’s budget
sent to Congress Thursday gave
some broad outlines of what the
program will contain but put an
expenditure price tag of only $144
million on it for the year begin
ning July 1.
It was learned, however, that a
budget request for authorization
to enter into spending commit
ments during the next fiscal year
up to $1,215,000,000 was made so
as to provide the basis for ex
penditure of five times that much,
or more, under the proposed pro
gram.
It was explained the programs
involving construction do not re
quire large actual expenditures
while they are getting under way,
.with the expenditures mounting as
planning is completed and actual
construction begins.
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PAGE THREE
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