Will football team expenses
Collegian
Ford
may
ATLANTA i UPI)— President Ford
-.aid yesterday the nation's economy
will get better the further we go into
1976" and predicted the situation will be
good enough for him to seek the
presidency on his own.
Ford told a news conference con
cluding his two-dav southern visit that
the economic situation in 1976 will be an
improving picture. I believe unem
ployment will be going down and em
ployment will be going up.
“1 think the economic circumstances
w ill be good enough to justify at least my
seeking re-election.” Ford said.
He said “good old American free
enterprise” in the form of cash rebates
io purchasers of new cars had gotten the
economy “mpving quicker than had
been anticipated.”
Ford predicted that in 1976 the cost of
living will go up seven per cent, com
pared with the 12.2 per cent jump in the
past year. He contended this would be “a
very significant improvement, as it is
not double-digit inflation.”
He said he expected the second and
third quarter of this year to produce a
"switch on the plus side.” with a five per
Oil depletion allowance retained
Committee rejects further
WASHINGTON (AP) House tax
writers, rejecting an idea for picking up
at least $2.5 billion more for individual
lax cuts benefiting low and middle
income Americans, refused yesterday to
kill the controversial oil and gas
depletion allowance.
By a 22-14 vote, oil-state forces won the
lirst big fight in the newly expanded
House Ways and Means Committee over
the depletion allowance, which has been
a chief target of oil industry critics for
many years.
However, some advocates of the
depletion allowance repeal said they
may carry their battle to the liberal
dominated caucus of all House
Democrats—and ultimately to the House
floor
Committee Chairman A 1 Ullman, D-
Ore.. made a personal plea to his panel
■colleagues for keeping oil tax issues out
of an economic emergency tax-cut
package now before the committee. He
said the depletion allowance matter
belongs in energy tax legislation.
Weather
Periods of light snow, drizzle and sleet
today.jHigh 31. Light snow tonight. Low
25. Cloddy with flurries tomorrow. High
28.
Joe Paterno
says 'better '76 economy'
justify seeking re-election
cent increase in the Gross National
Product and possibly a reduction in
joblessness of two million.
Ford refused to discuss what he might
do if Congress rejects his economic and
energy proposals. Asked his reaction of
the bill approved by the House Ways and
Means Committee for an $8.4 billion
income tax rebate, Ford said “I’ll have
to wait for the final version.”
“Action by the American people;” he
said, “is infinitely more important than
what we do in Washington, D.C.
“We've had changes in the last-two or
three months that show the economy is
developing faster than expected,” Ford
said.
“The unusual and I think successful
marketing technique shown by the
automotive industry in the last few
months, and the announcement that
some of the appliance manufacturers
are going to use the same techniques,
good old American free enterprise, I
think this approach will have a very
good stimulus, only to the economy
but to public confidence.”
Wage and price controls, Ford said,
Ullman said he will push for an energy
lax package “within 90 days from the
time we take it up,” working long hours
and nights if necessary to develop
legislation.
Meantime, separate votes in the House
on postponing a boost in oil import tariffs
and raising the national debt limit were
ordered yesterday by the Rules Com
mittee, potentially strengthening
President Ford’s hand in an expected
veto contest.
The Ways and Means Committee
quickly went along with the idea of
having separate bills on tariff and debt
limit disputes..
’ Democratic members of the Ways and
Means Committee, without the support
of their chairman or of the party
leadership, had voted to combine the two
measures in a single bill, on the theory
Ford would be hard put jo veto it.
The Treasury says it must have an
increase in borrowing authority by Feb.
18, when the outstanding debt is
estimated to approach the present
ceiling of $495 billion. The pending
legislation would increase the borrowing
limit to $531 billion through -June 30.
The'other portion of the measure, now
severed, is aimed directly against a key
portion of Ford’s economit program. It
would suspend for 90 days the authority
Editor's note: Following is the fourth In
a series of articles examining the Penn
Slate athletic Budget.
Most of Penn State’s athletic depart
ment administrators agree that a cut
back is necessary to correct budget
deficits.
The disagreement Hornes on where
(hose cuts will be made.
Football Coach Joe Paterno has some
opinions on cutbacks, particularly
lootball cutbacks.
He said he doesn’t like the prospect.
“Why the "football team con
tribute?” Paterno said. “We are con
tributing in a lot of ways. There isn’t
anybody in the country that runs a big
time football program on less money
than we do. We had 100 scholarships
when other schools had 140 and 150.”
“We had 100 grants when other schools
were running around spending, money
like a bunch of drunken sailors,” Penn
State Athletic Director Ed Czefeaj
concurred.
But Paterno does admit that cuts can
be made.
“I think we’re willing to cut back any
place we can that’s fair,” Paterno said.
“I think we’ve got to cut down in foot
ball, but in an area that isn’t going to
hurt the program in the sense of being
Icompetitive. Because once we’re not
competitive, then the income that we’re
going to lose would be so great that we’ll
have to eliminate other programs. Once
that cycle starts, then you’re in real
trouble.’’Paterno said that cutting down
traveling squads, curtailing recruiting
“excesses” and a cutback in grants-in
Photo by Ed Palsa
“are the worst kind of medicine I could
possibly see.”
Ford reiterated that his proposals will
“make conditions better and avoid
rekindling of double-digit inflation. I
hope the Congress acts responsibly and I
think it will.”
Some Democrats in Congress have
said Ford’s proposed 1976 fiscal budget
for the Defense Department is bloated
and should be cut in favor of more
funding for services for poor and middle
class Americans.
Asked about this, Ford said “I can say
without any hesitation that I will
vigorously oppose any attempt to slash
our military defense without rhyme or
reason.”
Ford also said that if Congress does
not agree to further military aid to South
Vietnam, “it will certainly complicate
the military situation from the stand
point of the South Vietnamese.”
Ford said the $l5 billion sought by the
nation’s mayors for aid to cities was
unnecessary, insisting his proposals
before Congress gave adequate aid to
metropolitan areas.
Asked about moves by Arab nations to'
he claims to impose a tariff on imported
oil and cancel the $1 levy he ordered into
effect Friday. Two additional $1 levies
are planned to bring the tax to $3 by
April 1.
Congress is expected to pass both
measures, beginning with House votes in
the next two days, and Ford is con
sidered certain to veto the tariff post
ponement. The real test will come when
Democrats try to muster two-thirds
votesfin House and Senate to override.
Meanwhile, in its work on a tax cut
bill, the Ways and Means Committee
refused, 22 to 14, to attach to the
legislation a provision calling for repeal
’of the oil depletion allowance.
Rep. Sam Gibbons, D-Fla., who
proposed the provision, said the repeal
would raise oil industry taxes this year
by between $2.5 billion and $3 billion.
The depletion allowance permits 22
plr cent of gross income from petroleum
property to be deducted from taxable
income up to a top of 50 per cent of
taxable net income.
In the Rules Committee aciton, Rep.
Richard Bolling, D-Mo., called Ford’s
tariff proposal a disaster. But he also
told the committee, j“I have grave
reservations about! linking the two
matters... The main! reason is that the
By RICK STARR
Collegian Sports Writer
University Park, Pennsylvania
Published by Students of The Pennsylvania State University
y Ten cents per copy
aid would be possible “fair” areas to cut
back.
But he said there wasn’t one thing
passed at last month’s NCAA convention
to relieve the financial crunch.
Paterho said any cutback in scholar
ships mtist be gradual.
“You can’t do that overnight,”
Paterno said. “If we cut back from 105 to
90, it would mean we couldn’t be com
petitive, which means we couldn’t have
crowds', which would mean we’d be
defeating the purpose of the whole
thing. ! '
“We’Ve got to run a football program
as efficiently as we can and make as
much money as we can out of football so
we don’t have to give up something in
another area.”
Paterno said cutting back Penn State’s
othef sports is necessary. ,
“There’s no question that we’re
heading for a problem in the future, but
how do we solve it?” Paterno said.
“Besides football we’ve got to look at a
lot of other areas where maybe we’ve
been living beyond our means. We have
to cut them, but in a way that we can
still have a meaningful program for
other people.”
Paterno said he doesn’t think the
deficit is completely fair.
“The University bills us full tuition for
every kid,” Paterno said. “The
University could help us by not charging
us for but of state tuition.
“So I think the deficit is not completely
fair to the overall picture of in
tercollegiate athletics, and the
University is not completely fair if they
think we have to have a balanced
budget, because a lot of it is ' a
bookkeeping deficit.”
Paterno said the biggest financial
Wednesday, February 5,1975
V01.75.N0.114 12 pages
invest in American businesses, Ford
responded by saying “it is a situation
requiring our best decision-making
powers and possibly a decision directly
from me.”
The President said _it took two
goverriment planes to carry Secretary of
State Kissinger and his staff to Los
Angeles recently because he feels
Kissinger needs considerable protection.
“Secretary Kissinger is a very im
portant person in this government at this
time,’} Ford said. “It would be tragic if
something happened to him for not
laking|adequate precautions. I would not
want Anything to hurt our foreign policy.
“I think his life is important to
protect.”
Ford left the Hyatt Regency Hotel
immelliately after the news conference.
He found a small crowd waiting jOutside
in the {rain and spent about five minutes
shaking hands. He got into his limousine,
then got out again and shook more hands
before departing for Dobbins AFB and
the return flight to Washington.
Ford’s southern trip was believed to be
the first of several to drum up support of
his etiergy and economic proposals.
x cuts
Democrats have the responsibility for
coming up with the proper policy—and
any hint of partisanship tends to destroy
Democratic credibility in advance.”
Demands may cause rent rise ;
former Laurel Glen owner says
Recent demands of Laurel Glen tenants cannot be met
without substantial rent increases, according to Bert Rudy,
Laurel Glen’s former owner.
At a meeting with the new management Sunday night, 135
Laurel Glen tenants gave a list of demands, including requests
' for a security force, better apartment maintenance, and more
adeqUate'snow removal. They threatened to withhold rent if
these demands are not met.
In a letter distributed to all Laurel Glen tenants yesterday,
Rudy said his failure ft) raise rents while faced with rising
costs was “a major factor in my inability to operate the
complex.” The Equity Mortgage Company took over the
management of Laurel Glen when Rudy went bankrupt.
Rudy said an increase in rent at Laurel Glen is inevitable,
but if increased demands are made of Mr. Everett; (Laurel
Glenns current resident manager), he will have to make larger
increases than previously planned in order to meet the in
creased costs.”' |
BINDERY
f 303 PAtTEE
be trimmed?
problem facing collegiate athletics
today is the emphasis on winning—to
make money.
“1 thipk probably the hardest thing to
lick is this business of winning at any
cost,” he said. “It’s this attitude you
gotta win, you gotta win, you gotta win.
“If it becomes a question that it’s only
worthwhile if you win, and it seems to
me there might be a tendency toward
this, then that would scare me very
much.
“I’d hate to see us getinto a situation
where the burden always falls on foot
ball to maintain a certain standard of
living. If football can pay for itself that
ought to be enough, all things being
equal. V
“Why should the football players have
to go,out and win? I think the footbair
players only have one obligation, to go
out and enjoy themselves. If I ever get to
the stage where my football team has to
win to save the rest of the University,
then I’ll have to get out.”
But Paterno admitted the financial
well-being of the athletic department
was currently dependent on his team
winning.
Penn State plays big-time football, and
pays big-time money for it.
The cost of. putting last season’s
football team on the field was about $1.5
million, according to Robert Scannell,
dean of the College of Health, Physical
Education and Recreation. That price
lag includes everything from head coach
Joe Patemo’s paycheck to the steak on
the team's training table.
Financially, the rewards are also big-,
time.
This year, the football program made
well over 80 per cent of the department’s
$4.2 million income, but that’s not
enough.
Salary, equipment, travel and food
costs are rising in every sport, including
football. This has forced the athletic
department to use extraordinary
revenue (bowl and TV money) for or
dinary bills.'
Scannell, Paterno and Czekaj have
said it’s a potentially dangerous
situation.
'■And this situation has raised questions
about excessive spending in Rec Hall.
According to Scannell, the athletic
department paid the way for 424 people
to go to the 1975 Cotton Bowl, not in-
Better outlook next year
PRESIDENT GERALD R. FORD explains more economy tactics to the press
at a conference vesterdav.
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fi. |
'Aii t
i'jr TShuf- *
Rudy said although the apartments are losing money, they
will honor lease contracts still in existence.
“At present rental is being subsidized by Mr. Everett’s
firm,” Rudy said. “The only legitimate complaint I believe
the tenants have is the unreliable bus service.”
Rudy said Laurel Glen had five buses operating to be sure at
least three would be'available for service, but “some joy
happy tenants stole three buses and rammed them into each
other, destroying two of them and leaving Laurel Glen without
a backup service.”
Rudy said Everett may buy two buses, an investment that
never will be reimbursed from rent -
“Tehants should realize that excessive? demands for
maintaining the apartments and grounds increase the losses,"
he said. “Additional monies demanded for operation by you
can only be reflected in higher rentals.
“If you feel that you would rather pay more money to get
more service. I’m sure Mr. Everett would be glad to discuss
both sides,” Rudy said.
U.S. POSTAGE
STATE COLLEGE
PA. 1630 L
PERMIT NO.IO
eluding 51 children who also made the
trip.
the children also were given a double
bed to sleep in, Scanned said, if the
parents were willing to sleep together in
another double bed in the same room.
The 424 who made the Cotton Bowl trip
included cheerleaders, the football
players and their wives, the coaching
staff and wives, the team’s training staff
and doctors, athletic department ad
ministrators and wives, the Blue Band
and its jadministrators, most of the
freshman football team and the Penn
State “official- party.”
Scanned said the bowls request an
official party from each school. Penn
State’s party for the, Cotton Bowl in
cluded: President John W. Oswald; John
J. Coyle, president's-representative to
the NCAA; William K. Ulerich.
representative of the Board of Trustees;
and Penn State Provost Russell E.
Lafson. Their wives/went also.
The team stayed* at the Fairmont
Hotel, where the varsity slept two in a
room, with two double beds. The rooms
cost about $3O per night after a sub
stantial ; volume discount (about 50 per
cent) was figured in.
The athletic department also rented
one car for every four players.
The team was in Dallas for eight days.
“I don’t think we’ve done anything
excessive,” Scanned said referring to
the Cotton Bowl trip. “But if the
economy is here to stay, we may have to
cut back on the size of the party in the
future.”
Scanned said the freshmen team and
children were taken because of available
empty space on the three jets chartered
lor the bowl.
In all, Penn State spent about $250,000
for the Cotton Bowl trip this year, about
half its New Year's Day pay. Was bowl
spending excessive?"
“I disagree with that,” Paterrto said.
'"A football team won the right to go to a
bowl game, it’s a reward for them. It’s
like saying. ‘Why Should we take the
band? ’ We spent $65,000 to take the band.
And I'm not against that because I feel a
bowl game is a reward for everybody,
and especially for the football team.”
Paterno said a bowl game should not
,be figured into an athletic department
budget, which is what Penn State is now
doing. I
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AP wirephoto