April 29, 1959

Williams repts state cannot meet Legis payroll this wk because of cash shortage; says May 7 gen payroll, involving 28,000 employes, will not be met without prompt action; warns of lasting damage to state; blames Sen Repubs; they hold out for long-range tax program tied to liquidation of Veterans Fund; doubt crisis is as serious as Adm claims

Mayor Wagner tightens control over all NYC realty dealings by having control, with certain exceptions, centered in new Real Estate Dept

Governor Rockefeller said yesterday that he and New York legislative leaders were "ready and anxious to deal on an equitable basis" with the situation of out-of-state residents who are subject to the New York income tax.

Mrs Luce confirmed, 79-11; links Morse opposition to his having been 'kicked in head by horse,' statement to press; statement touches off sharp Sen criticism of her after Morse reads it in Sen; Morse calls it example of her 'emotional instability'; Adm debates whether her usefulness has been destroyed; husband advises her to resign, statement; says confirmation vindicated her but holds mission 'compromised' by 'few angry men' whose opposition was aimed at him and Time; Dirksen, after conf with Eisenhower, says Pres thinks she was provoked; during confirmation debate Dirksen inadvertently used phrase 'old bag of bones'; Sens Lausche, Yarborough regret having voted for her; H R Luce recalls wife offered to withdraw after article in Time sparked riot in Bolivia; apptmt fight seen causing trouble on other apptmts; Morse accident recalled

Sen votes to override