PAGE TWO
$12.5 Million Deficit Seen
For Welfare Department
HARRISBURG (AP) An an
ticipated $12.5 million deficit in
the Public Assistance Fund can
be traced lo bad guesses made
about 18 months ago, the Public
Welfare Department said yester
day.
BUDGET MAKERS missed the
mark by more than 10 per cent in
the amount of money that would
be needed for the relief program
in the fiscal year ending next
June 30.
They estimated the need would
be $lO7 million, while the actual
spending will run close lo $l2O
million, according to the new wel
fare secretary, Arlin M. Adams.
State License Head Resigns Post
HARRISBURG (AP) The
Scranton administration accepted
yesterday the resignation of the
administrative officer for the 16
professional licensing boards.
Robert N. Hendcrshot said he
had resigned the $10,954-a-ycar
job, effective Feb. 4.
PTC, 7WU Agree
On Strike Contract
PHILADELPHIA (AP) Lab
or and management negotiators
agreed yesterday to a new con
tract for settlement of the 10-day
strike that has halted buses, trol
leys and subway-elevated trains
in America’s fourth largest city.
Officials of the Transport Work
ers Union said they would urge
their 5,000 members to approve
the proposed two-year contract
at secret balloting today.
. The agreement retains the con
troversial no-layoff clause which
the Philadelphia Transportation
Co. sought to drop. It was con
sidered the key issue in the strike,
although wages and other benefits
also were in dispute.
Michael J. Quill, fiery TWU
president, said PTC vehicles
should be carrying the city’s half
million daily riders again by the
homeward rush hour today.
Quill told newsmen the agree
ment provides for a 33-cent-an
hour package increase. Broken
down, it adds 20 cents an hour lo
present wage scales and 10 cents
in fringes such as pensions and
hospitalization.
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The shortage is the largest sin
gle item in the $34 million budget
deficit projected for this year by
Gov. Scranton.
“We were unduly optimistic,”
said Edwin J. McMahon, a staff
aide who. had served under the
Democratic administration of Mrs.
Ruth Grigg Horting, Adams’ pred
ecessor.
Budget estimates are made far
in advance and are pegged to the
vagaries of the over-all economic
outlook of the state and nation.
IN THIS CASE, the department
underestimated the number of
persons who would seek relief by
The position reportedly will be
given to Alan Emlen, Philadelphia
real estate man and son-in-law of
Jay Cooke, former Republican na
tional committeeman.
Emlen at one time served on
the state Real Estate Commission,
which is in the Bureau of Profes
sional Licensing. The bureau is an
agency under the Department of
Public Instruction.
William G. Murphy, secretary
to Gov. Scranton, said no appoint
ment has been made to replace
Hendershot.
Hendershot, a 31-year-old
Philipsburg resident, took over
the Bureau of Professional Li
censing in August, 1961, follow
ing the dismissal of William J.
Kilroy, Philadelphia.
Kilroy was dismissed on charges
of interfering with the operations
of the licensing boards.
Scranton plans to revamp the
professional licensing setup by
creating a new Commission of
Professional Affairs within the
Department of State. This com
mission would take the licensing
board out of the DPl’s adminis
trative jurisdiction.
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as much as 25 per cent a month.
This past December is a prime
example. The department estimat
ed 336,100 persons would be on the
relief rolls, but the actual count
was 451,498. Since last July the
actual monthly figures were below
estimates by between 60,000 and
115,000 persons.
Why? Department planners took
the forecasts of expert economists
that there would be sharp im
provement in the nation’s growth.
But it failed to match the pre
dicted rate.
WELFARE PLANNERS were
not alone in missing the mark.
The Scranton administration says
tax revenues will fall $lB million
behind estimates for many of the
same reasons.
Adams said the public assist
ance situation was made more
difficult because his predecessor
failed to provide for about $6 mil
lion worth of bills incurred this
year, but which won’t come due
until after the fiscal period on
June 30.
Despite the pinch in the fund,
Adams is more epneerned with the
future; specifically how to reduce
what was a hard core of persons
who havp been on relief for years.
He said industrial automation
and mechanization has resulted in
a group of unemployables who
have not had training.
“And because they remain on
relief so long . . . their inspiration
begins lo disappear completely,”
he said.-
“So from a total dollar stand
point we are going to have to take,
a hard look at the entire program.
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France Cancels Talks
On British ECM Entry
PARIS (TP) France defied its
European partners yesterday and
summarily. told them that nego
tiations with'Britain on European
Common Market membership are
broken off.
Reaction was swift. Foreign
Minister Paul-Henri Spaak told
the Belgian Senate the prosper
ous trading bloc might be wrecked
on the rock of French resistance
to Britain’s entry.
IN LONDON, British negotia
tor Edward Heath informed the
House of Commons that Britain
will press to keep the talks alive
with the active support of
France’s five market partners,
Germany, Italy, Belgium, the
Netherlands and Luxembourg.
The day of reckoning may be
Monday, when the negotiations
are scheduled to resume in Brus
sels, Belgium.
President Charles de Gaulle’s
spokesman, reporting after a Cab
inet meeting, deliberately de
scribed the breakdown as an ac
complished fact, and said there is
no point in resuming the talks
with Britain.
purpose: CONCERT
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LEONARD RAVER
PENN STATE SINGERS
UNIVERSITY SYMPHONY
place: SCHWAB
period: JANUARY 26, 8:00 p.m.
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(Corner
FRIDAY. JANUARY 25. 1963
The action by 1 the Cabinet dis
regarded the 5-1 majority at Brus
sels last week against a motion
by French Foreign Minister Mau
rice Couve de Murville to suspend
the negotiations.
THE CABINET confirmed Cou
ve de Murville’s position. But it
added that. France is willing to
study a suggestion from West
Germany to ask the - Common
Market Commission to look into
the state of the British negotia
tions.
West German Foreign" Minister
Gerhard Schroeder is expected to
make this suggestion in Brussels
on Monday. This might avert a
showdown between - France and
its allies for the-moment.
De Gaulle’s action, flying in the
face of the community’s majority
opinion, opened the prospect of-.a
grave split within the Common
Market.
Spaak made this point clear in
his blunt speech. -
“If .the five, other community
members must give way to diplo
macy based onMmreality,” he de
clared, “the economic community
will become impossible. If we
have to give way, the crisis will
be deep.”
“It tastes better
at The Corner"