davidaulloa/AmericanStories huggingface dataset:
Evening star., 1963-02-14

limits on the Federal Reserves
capacity to create assets for
purchasing Treasury securities.
If the Federal Reserve Coop
crates by increasing the re-
serves and lending capacity of
the banking system, the Treas
ury can sell huge amounts of
securities to commercial banks
vastly increasing the money
supply.
But If the Federal Reserve
which is legally independent Of
the administration refuses to
expand the banks lending ca
pacity, the banks must either
decline to buy Treasury securi-
ties or offset such purchases
by curtailing loans to private
borrowers.
Flexible Course Indicated
In that case, the Treasury
must borrow from existing saw
ings instead Of from newly Gre
ated money.
Treasury and Federal Reserve
authorities have indicated they
would follow q flexible course
in financing deficits resulting
from tax cuts. At least in the
early stages. according to their
apparent concept, much Of the
borrowing would be accom-
plished through creation of
money. because there is mini
NAL danger Of initiation in a
slack economy.
But as the economy re-
sponded to stimulation, in
creasingly larger portions Of
the deficits would be financed
through borrowing from saw
ings, to avoid excessive crea-
ton of money.
This would generate some up
ward pressure on interest rates,
but rate increases might be
moderate because the supply Of
savings available for loans to
the Government and private
borrowers would grow as the
more active economy boosted
incomes.
To the degree that money is
created or idle capital mobil-
lied, the administration con-
tends, consumers will be able
to buy more goods and serv-
ices, and investors will build
more productive capacity.
Tomorrow: The dangers Of
deficit financing.
Evening star., 1963-02-14

which 1t was airborne. The
plane was bound for Seattle
and Portland, Oreg., after its
projected nonstop flight to
Chicago.
The tragedy in the Ever
glades, 43 miles west-southwest
of Miami, was the first crash
Of a Boeing 720-B, a jet model
put into commercial use in Oc-
tober, 1860.
First hint that something was
wrong came in a rupture OF
air ground communications
after the airliner's pilot made
a routine request for clearance
to climb to $4,000 feet to begin
his cruise to Chicago.
The Miami Airport towers
next message to the plane went
unanswered.
Evening star., 1963-02-14
Record Studied
BY JOSEPH YOUNG
Star Staff Writer

The Civil Service Commits
Sion today issued regulations
authorizing Federal depart
ments and agencies to give
quality instep pay raises to
employees for top work perform
ance In addition TO the regular
instep salary increases.
Under provisions Of last
years pay reform law. quality
raises can be given In add
ton TO the regular time-in-
grade in-step salary raises. II
applies to employees under the
Classification Act.
Commission regulations to-
day also set the standards un-
der which quality steps can be
given.
Only one quality in-step SAL
ary raise can be given during
any one-year period, the csc
said. However. this quality raise
can be In addition to the en-
ploye's regular in-step salary
raise. the com mission ex-
planned.
For example. an employe who
is due a regular in-step raise
April can receive a quality
pay raise tomorrow and receive
the regular in-step raise as well
on April /.
In issuing the regulations
the csc emphasized that TO be
eligible for a quality pay raise
an employe must be perform
ing all the important func-
tions OF his Job with such q
high degree OF effectiveness
that he or she clearly exceeds
what Is considered an accept
able level OF performance.
Furthermore, the increase
should not be granted unless
the employe has had a suffi.
cient period OF service upon
which 10 base q conclusion
that high quality work is char
acteristic OF his performance
the csc said. Generally this
would not be less than three
months for the more routine
Jobs and longer for those In
volving more complex duties.
Each agency will promulgate
It's own quality pay raise plan
based on the csc regulations
Evening star., 1963-02-14

percentage of income by tax
ing, the consumer presumably
will spend more money and so
generate increased production
and investment.
The administration assumes
that consumers will spend
about SO per cent of their in
creased after-taX income. That
has been the normal ratio of
spending to disposable income
in recent years.
Evening star., 1963-02-14

rather than quality in-step pay
raises will be used where the
conditions for a quality raise
are met but the quality in
crease is not considered a suf-
ficient reward. This would be
In cases where Cd an employe
would enjoy the benefits of an
addition within-grade increase
for an insufficient length Of
time, or % the employees con-
tribution is so great that a
lump sum payment is more fit
ting recognition than a smaller
continuing benefit.
KENNEDY SLOGAN-While
the Eisenhower administra-
tons slogan was II Like Ike. I"
the Kennedy administrations
slogan seems TO be II Like
Hike"
LEASE AUTHORITY EX-
TENSION-The Post office
Department will ask Congress
TO extend its authority to build
additional post offices through
a lease arrangement with pri-
vate contractors. Under the
program. private contractors
build the post offices and then
lease them on a 30-year basis
TO the Government.
| Under this program which
expires this year unless Con-
gress renews II, many new post
offices have been built. This is
one OF the innovations OF the
Eisenhower administration that
the Kennedy administration
strongly supports and wants ex-
tended. Otherwise, Congress
must first authorize and then
vote appropriations for con-
struction OF post offices. a
time-consuming process which
resulted in few new post offices
being built before the leasing
arrangement program was
started.
s&ss
HOUSE UNIT MEETING
The House Civil Service Com
mittee will hold It's first meet
ing Of the year on March 7.
Chairman Murray announces.
At that time the various sub
committees will be appointed
and various bills assigned to
them.
Evening star., 1963-02-14
FISH SURVIVE
PLANE CRASH
IN EVERGLADES

MIAMI, Fla. (AP).-
About so tropical fish sur
vived the crash of a jet
liner in the Everglades
Tuesday.
They were found wiggling
in an inch of water that
remained in a crumpled
plastic container addressed
to the Midwest Aquarium,
Bensonville, III. Another
so fish were dead in the
container.
The package lay about rs
yards from the fuselage of
the Northwest Orient Air
lines plane.
Evening star., 1963-02-14
Rome Had Rood Mop

ROME. Road maps and mo-
tells were known in ancient
Rome. BY imperial edict, man
siones," or resting places. were
set up % to 81 miles apart
on the highways. Maps were
engraved on plates, cups, and
brass plaques.
Evening star., 1963-02-14
.ThunderstormIn indicated
As Florida Crash Cause

- MIAMI, Fla, Feb. IA (AP).-
Blustery Florida weather was
blamed tentatively today for a
Northwest Orient Airlines Jet
liners post-take-off plunge e
into the Everglades with loss
of43 lives.
"A Federal investigator who
would not be quoted by name
said the plane apparently
'sbroke apart in a thunder
Storm. 1t just wrenched apart" "
> Rain and gusty winds ruffled
Florida Tuesday, the day of
the crash, unroofing some
dwellings and prompting tor
nado warnings in north and
central portions Of the State.
Probers on Scene
The Civil Aeronautics Board
sent investigators to the
marshy scene of the four
engined Boeing 720-B's tragic
plunge, 9 miles from the near
est road, but said It's findings
would not be made public for
several days.
The CAB and other investi-
gative agencies apparently were
not prepared to say the air
plane blew apart In flight. But
those who explored the crash
scene said bodies and other
substantial debris of the crash
were scattered within, a radius
of more than 200 yards Of the
shattered aircraft and made
dents of foot or more in the
Spongy, yielding ground surface
Of the swampy region. This in
dicated some of the occupants
and baggage of the pla n c
reached the earth in a free
falI" outside the stricken air
liners fuselage.
Investigators attached prime
significance to a charred but
substantially undamaged black
box, containing in effect the
story Of the planes life after
its Miami take-off into rain
squalls Tuesday afternoon.
Record Studied
The box contained devices
which automatically recorded
the planes altitude, speed and
drift for the brief interval ir
Evening star., 1963-02-14

Palatine Hill, said yesterday
that rain and snow trickled
into tiny openings in the porous
marble Of dozens Of monuments
and froze.
AS the ice expanded it popped
dangerous cracks in the arch
ways. pillars and sunken pas
sageways.
only radical preservation
and restoration efforts will be
able to save them." Prof. Caret.
toni said. =,
Evening star., 1963-02-14
Rome Ruins Hit
By Hard Winter

ROME, Feb. IA (AP). =
Europe's severe winter has
caused extensive damage to
such famous Roman ruins as
the Arch Of Titus and the
Baths Of Septimius Severus.
Prof. Gianfilippo Carettoni,
superintendent of antiquities
for the Roman Forum and the
Evening star., 1963-02-14
Second Of Three Articles

reductions, increased Govern,
ment spending and Treasur!
borrowing can make the econ.
omy move ahead:
In a recession, by definition
resources are idle. Workers ar,
unemployed, factories operatt
below capacity and investmen
of capital lags. National In
come and production decline.
To a lesser degree, the samt
conditions prevail in periods O
economic slack such as we havt
today. Although income anC
production are increasing now
the pace is too slow to employ
resources fully. With so many
resources idle, there is little in
centive to expand productive
capacity.
Workers and factories are
idle because the economy fails
to generate enough purchasing
power to pay for all the goods
and services the Nation could
produce. Since purchasing power
is low, profit opportunities are
meager and investors are dis
couraged from risking their
money.
These deficiencies tend to
feed on themselves, sending the
economy into a downward
spiral.
When investment is sluggish
because of inadequate demand
for goods and services, fewer
workers are employed to builc
factories and machines. Wher
investors hold back, further
more, the economy fails to Gre
ate enough jobs in new fac
tories to employ the expand
ing work force.
Analyzing the causes Of the
economy's recent slow pace,
the administration has con-
cluded that the main deficiency
is in investment in new plants
and equipment. And investment
has Jagged, according to thi;
analysis, because consumers
have not had enough money tc
spend. If consumers spent
more, investors would expand
productive capacity.
Business spokesmen agree ir
principle with the general anal
ysis of why recessions happen
but they pin-point a different
stage of the circle for special
attention. The main made
quacy is not consumer purchas-
ing power, they contend, but
deficient funds and incentives
for investment.
If investment were more
profitable, they argue, business
men would build more factories
More workers would be en-
ployed to build and operate
those factories, and they woulC
earn enough money to buy the
increasing output.
Businessmen, therefore, en-
phaSize the need for cutting
taxes on corporations and in
veStorS.
President Kennedy intends to
compensate in part for the pri-
vate economy's deficient de-
mand by increasing Federal
spending. Purchases by the
Government increase total de-
mand and stimulate production
just as does buying by individ-
ual consumers.
But the President lays more
emphasis on directly increas-
ing consumer purchasing power
by cutting taxes. If the Gov
ernment takes away a smaller
Evening star., 1963-02-14


percentage of income by tax.
ing, the consumer presumably
will spend more money and sc
generate increased production
and investment.
The administration assumes
that consumers will spenc
about SO per cent of their in.
creased after-tax income. THAI
has been the normal ratio Of
spending to disposable income
in recent years.
Fear Drop In Spending
Critics of the tax program
are skeptical about this as
sumption. Consumers with
more after-tax income, they
speculate, may save a larger
percentage than usual. A SHARP
decline in the spending ratio
could wipe out the expected in.
crease in purchasing power.
But If consumers do spenc
about SO per cent of the in
come added by tax reductions
the administration calculate;
that the initial injection oi
purchasing power will circulate
through the economy and gen.
crate at least SIC billion of ad-
ditional production and income
Beyond this direct multi
plier" effect, according to the
theory, some unknown amount
of additional output and in
come will arise from the i'm
pact of consumer spending on
investment.
Although increased consumer
spending is the main objective
of the tax-cut program, the
P ,ident also proposes tax re-
auctions aimed directly at stim-
ulating investment.
Tax cuts for corporations
and high-income individuals,
who invest a large share of
their incomes, are in this cate
CORY. Lower taxes would leave
them more money to invest,
and make investment more
worthwhile.
These rate cuts could supple
ment tax relief given to busi-
ness last year through liberali-
zation Of depreciation rules and
enactment of an investment tax
credit.
Offset Purchasing Power
Where would the increased
private purchasing power-the
extra money In the pockets of
taXpayerS-come from?
The Government might pro-
vide it by reducing its spend
ing as much as 1t cuts taxes.
In that case, the increase in
private purchasing power would
be offset by the decrease In
Federal outlays. Instead of put
ting money into the economy
through Federal purchases, the
Government would leave the
money with the private econ
omy.
This process would not result
in a net addition of purchasing
power. In fact, less money
would be spent, because indivi-
duals and corporations would
save some of the extra money
Although spending cuts
would nullify the tax programs
intended stimulation of total
purchasing power. the lower
tax rates would heighten In
centives for individuals and
corporations to work harder,
take risks and invest more
money.
Conservatives contend this
kind of therapy, combined with
worker training and other
measures directed at specific
problems, would do a better job
of stimulating the economy
than blunderbuss efforts to in
crease mass purchasing power
Big budget deficits, they warn,
would undermine business con-
fidence and so dampen eco
nomic activity.
Mr.. Kennedy has made 1t
clear that he does not intend
to reduce Federal spending, al
though he has promised to
restrain increases. He intends
to pay for the tax reductions
with money borrowed by the
Treasury. In effect. the plan
is to add the net cost of the
tax cuts to the budget def
icits.
Creates New Money
Rv hnrroui,,o the novarpvoa,,f
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
Rixon Loss Increases,
But Backlog Jumps

Increased expenditures of
Rixon Electronic, Inc, resulted
in a larger net loss in the year
ended April 80. but the firms
untitled order backlog jumped
to $2,343,987 at the years end,
compared with $808,096 year
earlier, President James l..
Hollis announced In the an
nual report to stockholders.
The company had a net loss
Of $88,946 for the year, COM
pared with a deficit Of SIC, 1856
in the previous year. 1t spent
$344.567 for research and de-
velopment In the year VS.. S2l8,-
585 in the preceding period.
Sales totaled $2,l64,899 VS..
$l.768,577.
Stockholders equity at the
years end amounted TO 81 ,042,-
542 or $2.l3 a share VS.. $1,l31,-
488 or 1921 a share a year
earlier. New order input in the
fiscal year totaled 1895, $50
VS.. $2,433,l33 in the previous
year.
Mr.. Hollis said that in two
months since the end Of thu
fiscal year, the company hac
a profit Of $4,000 after take
and amortization OF $4,000 o.
capitalized research and de-
velopment expenditures.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
Acc Extends
Nitro Contract

The Atomic Energy Com
mission yesterday announced
1t has extended a uranium pur-
chase contract with Vitro Corp.
of America to December 81,
1866.
A modification Of an earlier
contract, which would have ex-
pired at the end of 1868, was
signed at Grand Junction,
Colo. Vitro operates a uranium
processing mill at Salt Lake
City, Utah.
The modified contract pro-
videS for purchase Of around
2,149,000 pounds Of U3OS val
ued at more than SIT million
between April /, 1862, and
December 81, 1866. Some 54O,-
900 pounds will be delivered in
fiscal 1868 and 475,0OO pounds
annually thereafter.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
Allegheny AirIines
Seeks to Buy Routes

Allegheny Airlines yesterday
asked the Civil Aeronautics
Board for standby authority
along with approval Of q plan
to take over routes Of North
east Airlines north of WASH
ington II Northeast fails to
solve its difficulties.
Edwin I. Colodny, Allegheny
vice president, said the plan in
cludes specific service proposals
for cities and communities
served by Northeast in all New
England States and along the
East Coast to Washington.
1t also calls for absorbing
about 600 Northeast employees
and lists a subsidy requirement
estimated at $1.8 million,
which includes a return on in
vestment and provisions for in
come taxes. he said.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26

years because it was using
newer equipment this year
which costs less to keep up.
The company also pointed to
a reduction in transportation
costs, expenses for fuel and
train crews, despite a SIS million
increase in freight revenues.
The company attributed this
improvement to greater oper-
ating efficiency"
Carloadings in the second
quarter rose 8 per cent and
volume in net ton miles rose
6Ks per cent. The road said
the tonnage increase reflects
heavier loading Of new, larger
cars and longer average hauls,
TexacO
Texaco, Inc, today reported
earnings of $116,233, 900, equal
to 80 cents a share in the 3
months ended June 80. This
compared with $103,828, 900 OF
80 cents in the 1862 period.
In the six months ended
June 80, Texaco profits
amounted to $247,952, 00C
or $1.95 a share compared with
1920, 1858, 900 or $1.73 in the
comparable period of last year
Texaco earnings for the first
half of 1868 included dividends
received from domestic and
foreign affiliates amounting to
500, 952, 900 before income taxes
compared with $82,928,0 900 in
the like period of 1862.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
lefty Earnings in First Half
Reported by Major Firms

Augustus C. Long, chairman
of Texaco, Inc, said earnings
for the first six months of
1868 were the best for any first
half in the company's history.
Gross crude production by
Texaco and its consolidated
subsidiaries increased $3.50
per cent, refinery runs, 1910
per cent, product sales. 7-1/10
per cent, and natural gas sales,
1912 per cent. compared with
the like period of 1862.
KennecOtt Copper
Kennecott Copper Corp. re-
ported a drop in second quar-
ter and first half sales and
earnings from like periods a
year ago, but Frank r. Mill
ken, president. said third-quar-
ter earnings may exceed last
years if the strike at the
company's Braden mine in
Chile is settled.
Second-quarter net fell to
$14,838,518, or $1.35 a share,
from $17,870,246, or $1.62 a
share, a year earlier. Sales
were $132,927,264, down from
$136,016,424. In the first quar-
ter net was SIS, ,28l, or $1.36
a share, on sales of $121,341,-
400.
In the first half profit de-
clined to $29,916,799, or $2.71 a
share, from $36,578,106, OF
1891 a share, a year earlier.
Sales we're 1929, 684, down
from $272,364,209.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26

world wide communications
satellite system, promptly de-
MED the charge.
In a letter signed Wednes-
day, the FEC said the ap-
pointed directors of the firm
were making decisions that
Congress intended to leave to
the entire board of directors,
including representatives cho-
sen by public stockholders.
FEC Cites Concern
According l., to the corpora
ton, the FEC said it was con-
cerned because of current in
dications" that the corpora
ton mo longer has definite
plans for an early issue of
stock and the apparent lack
of progress by the corporation
in arranging for such an is
sue"
The initial group Of incor-
porators had indicated in Feb
ruary that stock in the corpo-
ration would be sold this year
The directors are now re-
ported to be holding up the
stock issue until more develop
ment work is done on the kind
Of satellite systems to be used
and until further decisions are
made on the degree Of foreign
participation.
! Leo D. WEIGH, chairman and
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
Area Store Sales
Up 8 Pct. From 1862

Department store sales In
the Washington Metropolitan
Area were 8 per cent above a
year ago In the week ended
July 20 despite a 5 per cent
dip from the previous week.
the Federal Reserve Bank of
Richmond reported.
Area sales in four weeks
ended July 20 were UP IL per
cent from the like 1862 period
and for the year to date, 6
per cent higher.
The downtown portion OF
the area sales total was 3 per
cent above a year ago in the
week ended July 20, but were
down 8 per cent from the pre-
ceding week. -Four weeks
downtown sales were 5 per cent
above a year ago, while those
for the year to date were up
per cent.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26

Strong second quarter earn
ings for key companies in the
Nations major industries have
given 1868 a healthy business
look, up to mid-year at least.
Automobiles, oil, steel and
even the railroads have shown
up in the profit parade of the
past few days-in quarterly or
half-year accountings. Some of
the most dramatic follow, as
reported by the Associated
Press.
Pennsylvania Railroad
The Pennsylvania Railroad
reported net income for the
second quarter Of the year at
$6,825, 800, compared with q
1862 deficit Of $3,726,700 in the
same period.
Second quarter revenues
totaled $219, 29S,3OO this year
up 81 per cent over the $214,-
772,100 reported for the period
last year.
For the first six months OF
this year, the road had a de-
ficit of $l,119,800 but even this
was an improvement over the
$5.l28,600 deficit reported for
the comparable period in 1862.
The railroad said it cut ex-
penses in the second quarter
by 3 per cent or $50 million
from last years second quarter
It paid $2,788,538 less to main.
tain equipment in this years
second quarter than in last
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26
HOME MORTGAGE
DEBT RISES
S3.3 BILLION

Home mortgage debt in
creased by $3.3 billion in
the first quarter of 1868,
the Federal Home Loan
Bank Board reports. The
expansion was 10 per cent
higher than the previous
record first quarter Of 1859.
Compared to last year,
the increase represented a
gain of % per cent.
The total mortgage debt
on non-farm housing was
$171.7 billion at the end Of
March.
About STA billion, or 43
per cent, Of this total was
held by savings and loan
associations. The remainder
was held by life insurance
companies, sgt billion;
banks, $45 billion; individ-
uals, $40 billion; and the
Federal National Mortgage
Association (FNMA), IS
billion.
Evening star. [volume] (Washington, D.C.) 1854-1972, 1963-07-26

chief executive officer of the
corporation, said the initial
public offering of stock will be
made at as early a date as the
directors determine to be COM
patible with the public interest
and the carrying out of the
purpose of the act"
Preparing Letter
Mr.. WEIGH added:
THE corporation is specif-
ically taking into account the
need to arrive at proper de-
examinations with respect to
the program to be followed in
establishing a worldwide
satellite in order to provide
prospective investors with ade-
quate information in conform
ity with Federal and State
securities laws, particularly in
view Of the requirement of the
law that provision be made for
the widest possible distribu-
ton Of the stock Of the COR
poration.
1.-The corporation is pre-
pairing for transmittal to the
commission a letter which
summarizes It's position in this
matter, as previously outlined
to the commission"
The disagreement came to