• eagan threatens to fire striking controllers
By MIKE FEINSILBER
Associated Press Writer
WASHINGTON (AP) Striking air traffic
controllers held ranks late Tuesday in the face of
multimillion-dollar fines and a looming morning
deadline set by President Reagan for their return to
work or permanent dismissal. Their leader predicted
they would ignore Reagan's ultimatum.
"They took an oath in writing that they would not
strike," Reagan declared, holding firm on his 11 a.m.
deadline. "It's not a case of firing: they quit."
Robert E. Poli, president of the striking
Professional Air Traffic Controllers Organization,
said he had talked to strike leaders around the
country.
"I feel their resolve and their strength is as strong
as it was when they walked off the job," Poli said. "I
'see no change in their attitude at this time."
The Federal Aviation Administration late
yesterday upgraded its estimate of how many planes
were flying. FAA Administrator J. Lynn Helms said
72 percent were flying nationwide, although airlines
were still under orders to halve the number of
takeoffs at 23 major airports.
"Our capability to handle traffic'continues to
improve," Helms said.
Transportation Secretary Drew Lewis said
Local flight schedules cut drastically
By DAVID MEDZERIAN
Daily Collegian Staff Writer
It's difficult enough to get in or out of State
College and the air traffic controllers strike
isn't helping matters any.
"We have a 50 percent schedule," said Gene
Beck, customer service supervisor for USAir's
Allegheny Commuter.
Allegheny Commuter normally operates 12
flights out of University Park, but Beck said five
of Allegheny's 10 flights to Pittsburgh from
University Park have been canceled. The flight
to Washington, D.C., has also been canceled,
along with the flight to. Philadelphia by way of
Harrisburg.
Pittsburgh, Philadelphia and Washington are
among 23 airports targeted by the Federal
Aviation Administration to cut inbound and
outbound flights in half.
Bob Davidson (9th-food service and housing administration) peddles hot dogs along College Avenue to help pay - his way
through the University. He has permission to sell along municipal streets anywhere, but if he is not making a sale he has
to keep his pUshcart moving.
House sends tax-cut bill to president
By JIM LUTHER
Associated Press Writer
WASHINGTON (AP) The House of
Representatives sent President Reagan the three
year slash in personal income taxes yesterday that
the president contends will launch an economic
boom without inflation.
Operating under unusual procedures that
required a two-thirds majority vote, the House
passed the compromise version of the tax-cut bill
282 to 95. White House officials said Reagan may
sign the bill tomorrow before leaving that day for
his August vacation in California, or he may sign it
while in California.
As had occurred Monday in the Senate, final
passage was held up in the House yesterday long
enough for several members to try to trim some of
the $ll.B billion that the bill earmarks for the oil
industry through 1986. Rep. James M. Shannon and
his supporters were no more successful than a
fellow Massachusetts Democrat, Sen. Edward M
Kennedy, had been.
The oil provisions are only a small part of the
bill's $749 billion in tax cuts for individuals and
businesses during a six-year period. The heart of the
bill is Reagan's proposal to permanently reduce
personal tax rates by an average of about 25 percent
the
daily
controllers who defy Reagan's deadline would be
barred for the rest of their lives from taking federal
employment.
"Let there be no mistake," Lewis declared. "The
choice must be made. I hope all controllers
understand that there will be no turning back, no
second chance."
The airline industry said it was losing 270,000
passengers a day while some planes flew half empty
and others idled for hours to take off.
In. New York, a federal judge fined PATCO $lOO,OOO
an hour for the duration of the illegal strike. The
union also was subjected to heavy fines in
Washington.
But the union said it could pay no more than the
$3.5 million in its treasury.
PATCO called the first nationwide strike of federal
employeeS in history in defiance of the law when
the government turned down its demand for raises of
$lO,OOO a year and a four-day work week for its 15,000
members. The union said special treatment was
justified because a controller's job is so stressful that
many die early.
".We will not go back to work," declared Poli,
whose union faced'an 8 p.m. EDT deadline from a
second court, in Washington. Judge Harold Greene
ruled that if the strike continued past that hour, the
Beck said he thinks the limited schedule at
University Park will continue until a significant
number of controllers return.to work.
"It depends on the controllers," he said. "As
long as they keep striking, I think the schedules
will stay the same."
On Monday afternoon, the University Park
terminal was unusually empty.
"A lot of people haven't been showing up," said
Joe Bean, a ticket counter agent for Allegheny
Commuter. "Right now, they tell us 50 percent of
our flights (will operate). That could change
depending on how many of the controllers show
up."
With air service out of Univeristy Park
canceled, many passengers have been looking
for alternative transportation.
"We've been getting a lot more information
calls," said Mike Cvetan, general manager of
by 1984. For the first time, taxes will be cut
automatically every year, starting in 1985, to help
offset inflation.
The first bit of the tax cut will start showing up in
paychecks received in early October, but for most
workers that will amount to a decrease of less than
$1 in taxes withheld. Bigger cuts in withholding will
follow next year and in 1983.
A typical four-member, one-earner family with
$20,000 income would get a $25 tax cut less than $2
a week for the last quarter of 1981. The family
would get an additional reduction of $228 in 1982,
$371 in 1983 and $464 in 1984. When fully effective, the
bill would reduce that family's current tax liability
of $2,013 to $1,549.
Similarly, a single person earning $30,000 now
pays $5,718 in federal income taxes. That would be
cut by $7l this year, $566 more next year, $l,OBl in
1983 and $1,333 in 1984.
In addition to cutting tax rates, the bill provides a
special new deduction for working married couples
who often pay more tax than if they were single;
raises the tax credit for child-care expenses;
liberalizes tax treatment of retirement savings;
provides a new tax exemption for certain savings
but ends an existing $4OO-per-couple interest break
()Ile • iarl
union must pay $250,000 for yesterday, $500,000 for
today and $1 million for each day through Sunday a
total of $4.75 million by next week.
Reagan repeated his determination to fire any
strikers who ignore his ultimatum.
"I have no choice," he told reporters during a
goodbye visit to The Washington Star, a newspaper
that will close down Friday. "The law is very
explicit."
Added White House spokesman David Gergen late
yesterday: "Tomorrow is the day of judgment. The
test comes at 11 o'clock and the roll will be called."
He said there were "informal indications" that
many striking controllers were undecided about
whether to return to work, but refused to elaborate.
Ironically, many planes in the air were half empty
as would-be passengers assumed they would not have
a chance of finding space.
In a federal courtroom in Brooklyn, N.Y., Judge
Thomas C. Platt declared the union a violator of an
injunction he had issued 11 years ago to prohibit a
PATCO strike then. He imposed a fine of $lOO,OOO an
hour $2.4 million daily for the strike's duration.
That was twice the amount sought by the Air
Transport Association, an arm.of the industry.
Please see related story, Page 4
Trailways Bus System of State College. He said a
majority of the calls have been for long-distance
points, such as New York and the Midwest. There
were also many calls requesting information on
runs to Pittsburgh, he said.
Cvetan said traffic in the bus station had gone
up slightly yesterday, but he would not attribute
the increase to the air traffic controllers strike.
"It's been a little busier," he said. "I don't
really think it's anything significant, but there
has been a minor increase.
"Nobody indicated that they were going by bus
instead of plane," he said. But he said an unusual
number of yesterday morning's passengers were
headed to the West and the Midwest, possibly due
to the strike.
"We're advising people to contact us a couple
of days (before they plan to depart)," he said.
Photo by Steve Shaw
that especially benefits lower- and middle-income
savers.
The measure also eliminates estate taxes for all
but the wealthiest families, and begins a special
deduction for charitable contributions made by
people who do not itemize
The legislation will reduce business taxes by an
estimated $152.8 billion from now through 1986,
mainly by allowing faster recovery through the tax
system of money spent for buildings and
machinery.
Unlike most tax cuts passed in recent years, the
relief in Reagan's bill is tilted decidedly toward the
upper-income people who carry most of the federal
income-tax burden. Democrats complain that such
an approach shortchanges the majority of workers,
who earn less than $20,000 a year and are hit hardest
by inflation and rising Social Security taxes.
Reagan's program which some supporters
terni a "riverboat gamble" is based on the
assumption that if the federal government reduces
its tax bite, Americans will have greater incentive
to work harder and to invest their money in ways
that will benefit the economy.
But there was little discussion of that theory as
the House wrapped up action on the tax bill. Instead,
A taste of New York hits town
Students vend hot dogs to pay tuition bills
"We convinced him our business would be worthwhile,"
Davidson says.
And State College citizens along with friends from the
University have been responsive.
"I feel good when the public says, 'I really enjoyed your hot
dog, may I have another one,' " Davidson says.
At that moment, a pink-lipsticked lady bounds up to
Davidson and sees he's being interviewed.
"I already had one," she offers. "I'm back. I had one
Monday. They're good."
Davidson says he has sold nearly 1,000 hot dogs since his
business opened over a week ago.
"At this point I can't say I'm going to sell x amount of hots
dogs in an hour. I have to sell 8 to 10 an hour to make minimum
wage," he says.
And if he's not selling that amount, he moves on.
"The ordinance requires that I keep moving if I'm not
making a sale," he says. And he has kept moving. Up and down
College Avenue all day long.
Although most folks have been open to New York City hot
dogs, some downtown businesses have been less than amiable.
A few even called the police, who responded that Davidson is
allowed to stand anywhere as long as he's making a sale.
Davidson said one businessman harassed him in front of a
customer, but a policeman told the businessman he was
overstepping his bounds.
"Eighty percent of the businesses are really cool," he says.
"When businesses call in complaints about me, I know I'm
doing a good business."
So much for the past. Davidson and Collora will also be
flavoring the streets of State College come Fall Term.
"I feel that I'm gonna make an awful lot of money in the
fall," he says.
But for now, he'll push his cart up and down the streets of
State College, waiting for more people who might want to hear
everything about Sabrett hot dogs.
By ROSA EBERLY
Daily Collegian Staff Writer
"Dog and a drink for a dollar."
Under a blue and yellow umbrellaed pushcart, two women
ogle after comparing their bargains from a Friday of shopping
in downtown State College.
"Ooh, those look good, Caroline."
"I got Sabrett hot dogs," the vendor announced. "They're
straight from the city New York. I got mustard, barbequed
onions and sauerkraut."
"She wants everything on hers, don't you, Caroline?"
Under the umberella, Bob Davidson (9th-food service and
housing administration) is poised, ready to enlighten the
masses with the history of his business. •
Davidson and his buddy, Gary Collora, also a 9th-term FSHA
major, want to bring a bit of the flavor of New York City to
State College. They also want to pay their way through the
University. '
Explaining this as he stands behind the gleaming chrome of
his pushcart, Davidson talks about . . . everything.
"Tell me if I talk too much, 'cause I'll talk a lot about the
business." And he does. To everyone.
"Let me tell-you just a little bit about the business . . ."
He explains that he and Collora talked about an idea to make
money and at the same time bring something special to Happy
Valley. They had both eaten Sabrett hot dogs in New York and
decided to try to market them here.
"Let me tell you a little about these hot dogs . . .
"These hot dogs are good enough that they sell themselves,"
Davidson says. "They're 100 percent beef. That's important.".
So Davidson and Collora returned from New York to State
College with fistfuls of 100-percent-beef Sabrett hot dogs, and a
blue and yellow umbrellaed pushcart.
The operation had to be OK'd by the health department and
the entrepreneurs had to approach tax administrator Michael
S. Groffat at the Municipal Building to get a permit and license
to vend downtown.
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The impact of the air traffic controllers strike hits the Greater Pittsburgh International Airport as a
lone controller stands in the observation tower. The strike continued yesterday despite threats from
President Reagan that strikers would be fired.
the spotlight was on the special tax relief offered to
oil producers and the owners of the land from which
the oil is pumped. The relief would total $ll.B billion
through 1986 and about $33 billion over the decade.
"There's no way we can justify what we have
done for the oil industry in this bill," Shannon said.
No member defended the oil money, which found
its way into the bill when Reagan and House leaders
courted the votes of oil-state members who had
their own rival tax-cut plans. However, Rep. Barber
Conable, R-N.Y., noted that the bulk of the relief
would go not to the big-name oil companies but to
about 2 million royalty-owners and a few thousand
independent producers.
Rep. Parren Mitchell, D-Md., recalled
conversations with elderly constituents over the
weekend who were concerned about Social Security
benefits, with women who operate day-care centers
and are worried about cuts in federal programs, and
with 2,000 workers who now are jobless because of
the elimination of government job programs.
In each case, Mitchell said, he explained that
sacrifice is being demanded of everyone.
But, he demanded, "How in the name of God do I
go back to those same people and tell them they've
got to sacrifice when we give $l2 billion to the oil
companies?"
15°
Wednesday August 5, 1981
Vol. 82, N 0.26 14 pages University Park, Pa. 16802
Published by Students of The Pennsylvania State University
• .;
inside
e Denise Shane has some shop
ping tips designed to save you big
bucks Page 5
• Jim Collins has been busy
this summer painting a mural of
University sports in the HUB
• Major league teams start rati
fying the strike agreement and
the Pirates vote yes Page 8
weather
Continued warm and humid to
day with hazy sunshine and a few
afternoon clouds. Chance of a scat
tered shower with a high today of
86. Fair and mild tonight with a low
of 64. Increasing cloudiness tomor
row, continued warm with some
afternoon showers and thun
dershowers and a high in the mid
80s. Cloudy with some showers
and thundershowers tomorrow
night and a low in the mid 60s.
AP Laserphoto
Page 6