The Indiana Gazette from Indiana, Pennsylvania • 1

TEDDY The Indiana County Area Newspaper That Serves Every Member of the Family KttMmta Owning Ou for hentlng In short, but If they could only pipe the hot air from the Capitol Vol. 77 No. 193 Copyright 1977 Indiana Prl filing and Publishing Company All flights Rrvd Indiana, Pennsylvania, Wednesday, February 16, 1977. Four Sections Forty Pages Wrestling With Shapp's Budget Legislature Faces Long Battle HARK1SBUHU (AIM -Pennsylvania 's legislature faces a long buttle over spending and whether to raise Dig sales tux, gas tax, income tax, or any combination of the three. A tux increase is unavoidable unless the legislature drastically cuts the $9.4 billion 1977-78 budget Gov.

Shapp presented tltc lawmakers Tuesday. After Shapp's traditional address to a joint legislative session, legislators talked of rearranging Shapp's spending plan but not cutting the total. Slump's spending figure from rising. Adding school increases to Shapp's figure brings in the possibility of higher income taxes. Shapp asked for boosts in the gas and sales taxes just to fund his $9.4 billion program.

Here's the way each tax could affect average Pennsyl-vanians: The Sales Tax. Shapp wants to raise it from 6 per cent to 7 per cent That mean an extra $20 annually for someone earning $8,500. It would cost $29 additional for a $13,500 wage earner and $38 more for someone earning $19,500. The Gas Tax. It would go from 9 to II cents per gallon under Shapp's plan.

That would mean another $13.30 for an average driver. The figure Is calculated for the driver who gets 15 miles to the gallon. The Income Tax. It could cost someone earning $10,000 an extra $40 a year. The figure is based on a 2.4 per cent tax, the rale it would Lake to fund for school increases, with the estimate depending on which legislator you talk lo.

Shapp proposed a $79 million increase for public schools. Nolan, the Senate floor lead er. indicated some of Shapp's programs may be slashed. "Automatic increases in the state budget have run their course. If ever they (the Shapp administration, were going to have to justify any increase, this is going lo be the year they See Page Column 8 Shapp's program, plus a $250 million school aid bill that will be introduced next week.

The current tax is 2 per cent of gross Income. "We're going to have to take a hard look at the income tax to raise the money we need for school subsidies," said the Senate president pro tempore, Democrat Martin L. Murray. "I don't know what the figure is going to be but we're going to need big money." Murray referred to the $160 million to $325 million needed On Tax Increases State's Lawmakers Hanging With Governor PKOTfSr BANNERS Signs reading "Free the 18" and "Down With the Shah" hang from the crown of the Statue of Liberty in New York Harbor Tuesday after protesting Iranian students occupied the island for five hours. The- demonstrators said they were protesting the treatment of political prisoners in Iran.

(AP Laserphoto) Gas Inland They Say Opponents Argue Against Drilling well as a long-range solution that will create a new tax resource lor all school districts that will help relieve the burdens presently created by property taxes and thai will encourage belt-tightening in many school districts around the state whose financial needs are not That, in a series of breaths, is what Shapp told the legislature. What it means is, "Boys, I'm turning the problem over to you." That's why the legislature is hanging from Shapp's ankles. Back home their constituents want some answers tn school problems other than increases in local taxes. Sen, Martin. Murray, the Senate's top officer, said the legislature may have to raise the income (ax in addition to Sliapp's call for a higher sales lax rate and a larger gasoline lax.

"1 don't know what the figure is going to be. but we're going to need big money," Murray said. Some other Democrats and Republicans seem to agree that more taxes might be HARRISBURG (AP) Gov. Shapp. hanging by his teeth from a budget which proposes higher taxes, may have the legislature gripping his ankles from below.

Shapp's gymnastics result from Ills request for tax increases but no new programs. He says the nation's poor economy, rising unemployment and more people on welfare did him in. The governor's budget proposal, which he presented to the legislature Tuesday, left some Senate and House members gas-' ping. They were concerned by the lack of any solutions to school financing problems. Here's the situation: Educators say the state's aid program to public schools does not match what the schools actually are spending.

They 'd like to increase the subsidies. Lawmakers say they agree. The governor doesn't think the state can be a rich uncle any more. "Therefore. I am committed to work with the General Assembly and others to develop a short-term plan to provide immediate aid to those districts in crisis as ARSENAL OF DEATH Guns, knives, and Nazi paraphernalia, including a swastika flag and German helmet are displayed in New Rochelle.

They are the legacy of Fred Cowan, the mass murderer who slew five persons including a policemon before killing himself Monday at the warehouse at which he worked. (AP Laserphoto) Taking From Upper Brackets needed. Tininitu iiHiiiiiuiMiiiitiiuuiiMiLiiiiiiiiMriiiiiiEiiiiiiiiiiiiiiiiinittiii Lintiiniiiitii iiiiif i ill ii Congress Considers Higher Rebates For Lower Groups As Private Citizen Barger Attacks Enemies, Press Fifteen Cents "Sometimes it turns out that a well is not as attractive as originally thought and building pipeline and compression facilities is not worth it at the moment." lie said. RAY E. FYOCK seeks post Fyock Seeks Treasurer Post In Alay Ray E.

Fyock of Indiana RD 1 announced today that he will seek the Republican nomination for Indiana County Treasurer at the May Primary Election. A native of Grant Township, Mr. Fyock is the son of the late Hilbert and Bessie Fyock. He and his wife Alberta have a son, Robert. Mr.

Fyock attended grade school in Grant Township. He attended one year of high school at Plumville and graduated in 1934 from the former Montgomery Township High School. In 1935 he was employed as a delivery salesman for the Hill Top Dairy, owned and operated by H.W. Stephens and son. Mr.

Fyock purchased the dairy in 1952 and has been self-employed since. He is well-known in the area through his dairy business. A member of the Crete United Presbyterian Church, Mr. Fyock is a ruling elder and is currently serving as the Clerk of Session-He was a 4-H club leader for 25 years and is currently serving as treasurer for the 4-H Development Fund. Mr.

Fyock is senior counselor of the United Commercial Travelers, Indiana Council 598, and is a corporate member of the Indiana County Fair Association. With over 40 years of business experience in dealing with the public, the candidate feels that he should qualify to serve the people of Indiana County as treasurer. A powerful Democratic senator, floor leader Thomas M. Nolan, said the legislature might be wrestling with the budget until September. It's supposed to be passed before the new financial year begins July 1.

Legislative leaders said large increases were necessary for school districts, while Shapp only proposed small doses of new school money. A legislative move in (his area would require large cuts in other programs just to keep mer President Gerald R. Ford's budget envisioned receipts of $393 billion and expenditures of $440 billion. The Ways and Means Committee, where ail lax legislation must originate, is likely to use the President's tax proposals as the vehicle for extending existing general tax cuts through next year. The President's tax plan calls for a flat $50 for nearly all Americans regardless of income, The tax staff said that phasing out the rebate for those with gross incomes between $25,000 and $35,000 would reduce the refund's total by $818 million.

The revenue saved could increase the rebates for those making less than $25,000 to $54, the staff said. Persons with an income of $30,000 would gef $25 rebates, but those earning more than would get nothing. Or, the staff said, the rebates could be raised to $57 for those making below $10,000, $53.50 for those at the $12,500 level, $50 for those making between $15,000 and $25,000 and then phasing it out by $35,000. The committee also may reshape other tax parts of Carter's two-year stimulus program. Changes arc expected in the package's business tax portions.

However, Ways and Means is generally expected to stay close to Carter's recommended total of $22 billion worth of plans over two years involving taxes and rebates. Non-tax items in the President's package, such as job-creating programs, are being handled by other committees, which arc likely to increase the spending levels. Rabin of six Middle Eastern countries, met with Rabin at the breakfast table, placed a wreath at the Yad Vashem memorial to the six million Jews slain by the Nazis, and then met with Foreign Minister Yig-al A Hon. One of Rabin's aides said the prime minister and the secretary of state exchanged views on the Middle East situation. That was the only information immediately available on what was said.

But since one of Vance's major concerns on his trip is to ItlllH i iij i ieeiii tiinii iriini purn irnri inai inircr Barger noted that one of his one political enemies was former state Rep. Joseph Hep-ford, a Republican who ran a legislative investigation of alleged official wrongdoing. The Hepford committee tried but was unable to find evidence against Barger. The indictment against Barger was obtained by Dauphin County Dist. Atty, Leroy Zimmerman, who Barger pointed out was Hepford law partner.

"I felt I have lived a life of honesty and integrity," he said. Much of the opposition against him resulted from his refusal to fix tickets for politicians. Barger said. i set a policy. There would be no tickets fixed I became quite unpopular," he said.

He said his main reason for resigning, however, was the Interference by federal courts in state police hiring, firing, promotion and discipline practices. Recent antidiscrimination rulings have required the force lo hire and promote large numbers of minority officers, regardless of their promotion test scores. Barger said he expects to take a job setting up security systems for the Oxford Development Co. of Monroevllle, which handles several shopping centers. PITTSBURGH (AP) -Opponents of drilling on Lake Erie say there's plenty of natural gas inland, but supporters argue that energy needs demand the tapping of both sources.

Gov. Milton Shapp has decided that, environmental concerns notwithstanding, the 10-year ban on offshore drilling Is over. There is believed to be about 600 million cubic feet of natural gas under those waters. "Wo have plenty of gas inland. These wells are drilled and they are not being used," protests Dave Dehaven.

imme-diate past president of the Pennsylvania Federation of Sportsman's Clubs and an Brie native. "His order is absolutely Rep. John Laudadio added: "We've got hundreds of gas wells in Pennsylvania that are capped I'll show you 10O wells in Westmoreland County alone that are not producing." The chairman of the state House Conservation committee also said ho has evidence gas companies are deliberately holding out on the public. One gas producer conceded that some land wells are capped in the hopes gas prices will increase, But Dana Kelly of UGI exploration division here said it was not a deliberate attempt to deprive the public. Obituaries on Page 34 BRENNAN, Mary E.

Stern, 74, Clymer CAIN, Jimei 83, Indiana STOCKLEY, Mrs. Ino, 81, Cherry Tree LATE DEATH BLIXT, Mn. Anna, ti, Cleveland, Ohio, formerly of Clymer Entertainment 38 Local News. 13,33 Obituaries 34 Sports 21-25 Weather 4 Women's Section 16,17 TED HUDOCK Jefferson candidate Ted Hudock Announces Candidacy A. Ted Hudock, Punxsutaw-ncy attorney, is the first announced candidate for county-wide office in the upcoming Municipal Primary Elections.

Attorney Hudock has announced his candidacy on the Democratic ticket lor the office of Jefferson County District Attorney. That office is currently held, by J. Kipp Lukehart of Punx-sutawney, a Republican. Attorney Hudock is a native of Punxsutawney and a graduate of Punxsutawney High School, the University of Pittsburgh and the Dickinson Law School. He was admitted to the Jefferson County Bar in 1973 and was first associated with the firm of Katzen and Hanak of Reynoldsville.

He is currently practicing law in Punxsutawney and has been serving as the Jefferson County Public Defender. The general tax cuts that are expected to be continued through 1S78 include individual credits, a special bonus for the working poor, and corporate tax rate revisions to aid small businesses. The current tax credit is $35 for each taxpayer and dependent Taxpayers can opt instead for a credit of 2 per cent on the first $9,000 of taxable Income, saving a maximum of $180. The credit saves taxpayers about $10.1 billion a year. Working poor families can claim a bonus of up to $400.

That costs the Treasury $1.3 billion annually. Meanwhile, the Congressional Budget Office said Tuesday that unless the ecomomy develops unusually strong growth, the country will not have both a balanced budget and unemployment down to 4.1 per cent by 1982. A more moderate growth rate, the office said, could produce a balanced budget with some leeway for new programs by 1982. but with unemployment still about 5.5 per cent. Former Koffee Shop Owner Dies James Cain, original owner of the Kane Koffee House, a well-known establishment to Indiana residents, died yesterday in the Indiana Hospital, lie was 83.

The coffee shop was originally located in the Hetrick building across from the old county courthouse and was later moved to the 300 block of Gompers Avenue. Mr. Cain returned to Indiana last year after residing in Warren County for 30 years. Discuss determine how the Palestine Liberation Organization can be included in Arab-Israeli peace negotiations, it was assumed he and Rabin discussed Israel's conditions for modification of its refusal to deal with the PLO. One high-ranking Foreign Ministry official said the PLO would liave lo affirm Ks accept-, ance of the Jewish state and' also approve United Nations resolutions recognizing Israel's sovereignty before Israel could even consider peace talks in which Hie Palestine guerrilla WASHINGTON (AP) Tax-writers in Congress arc considering whether to take President Carter's proposed $50-per-per-son rebates away from upper income taxpayers and give a few dollars more to those in lower brackets.

That is one of the alternatives that the congressional tax staff has outlined for the House Ways and Means Committee, which starts work today on the tax proposals in Carter's S3 1.2 billion economic stimulus plan. Meanwhile, a published report said Carter plans to propose Increasing the deficit for fiscal 197B by $11 billion to $14 billion above levels recommended by the Ford administration in its final budget. The Washington Post said today the Carter administration estimates receipts at just under $400 billion and expenditures approaching $460 billion. For- Chief Helps Bobcat Band Chief Tommy Hawk has ordered some nice weather for the Blairsville Senior High School marching band as they Sreparc to march off to the lardi Gras in New Orleans, Irvnnrmvf TheChief says Gazette-land will be clear and very cold tonight with lows near above zero (-15c) and then a sunny Thursday will follow with highs in the mid 20s. There is a ten per cent chance of snow flurries tonight and Thursday.

Vance, JERUSALEM (AP) Secretary of Slate Cyrus Vance and Prime Minister Yitzhak Rabin met for an hour and 20 minutes today, and afterward the Israeli leader told reporters he was "very very satisfied" with the discussion. "I believe that the administration of President Carter and Secretary Vance will maintain the special relationship based on a search for peace through strengthening Israel." Rabin said. Vanee. who arrived Tuesday night for the first stop on a tour HARRISBURG (AP) Former state police Commissioner James Barger attacked his political enemies and the press today, his first day as a private citizen. Barger, indicted last Febru-aary on perjury and conspiracy, charges, said he did not resign' because of the charges.

He said the main reason was court interference with state police hiring and promotion practices. Barger's resignation took effect today. He was replaced Tuesday by his right-hand man, Paul J. Chylak. The indictment against Barger and two top aides stemmed from the alleged falsification of accident reports involving troopers who had been His Indictment was not a factor in his resignation, Barger said, but was an example of the political moves against him.

"There was a conspiracy, all right. There was a con si racy against Barger and Well-endorf." Lt. Col. Roy Wellendorf, Barger's former deputy, was one of the indicted aides. But Barger devoted most of today's farewell news conference to a bitter criticism of the press and some politicians.

"Sometimes I wonder if a number of the news media haven't become sick," he said. "The news media was only concerned with one thing that I had been indicted," he said, adding that his accomplishments during 30 years on the force were given scant coverage. Gurion Airport, was that Israel is "not for stagnation" but for movement toward peace. "It is high time the political momentum should be revived," A lion said. Israeli officials said privately they are ready to return to Geneva Immediately but not if the PLO attends.

As an alternative, the Rabin government has suggested the United States consider a resumption of negotiations for interim settlements between Israel and its Arab neighbors. Middle East tOCAl TEAMS TRIUMPH Homer-Center, Shannock Valley and Indiana University were among the winners on the hardwoods Tuesday, while Punxsutawney won and Indiana lost in high school wrestling results. Details on these and other evonts are in today's sports section. FISHING LIMITS The 200-mile fishing restriction the U.S. is putting into effect may have far-reaching economical and political ramifications.

See story on page 32. OTHER FEATURES organization took part Some U.S. officials expect that the PLO, in an attempt to help revive the Arab-Israeli peace talks in Geneva, will nullity the call in its charter for the destruction of Israel. But the Foreign Ministry official said the Palestinians would have to do more than that. Vance brought with him an admonition from President Carter that movement toward an Arab-Israeli settlement this year is critical.

The Israeli response, already voiced by AUnn when he greeted Vance at Ben- Bridge 39 Business Mirror 39 Classified 35-37 Comics 39 Dear Abby 27 KditorUl 2.