January 13, 1970

Gov-elect Cahill says sales tax must be increased from 3% to 5% because of major fiscal crisis, news conf; foresees no trouble in persuading Legis to approve rise quickly so that collections can begin Mar 1; rise would yield $200-million a year; Cahill also to propose pkg including $35-million tax on bank stocks; continues to reject income tax; says he will ask Legis to create tax comm or tax conv to study state's revenue structure and rept within 6 mos, after which he will recommend 'complete overhaul' aimed at curbing spiraling local property taxes; Sen Sears and Assemblyman Dickey predict quick, if unenthusiatic passage of sales tax bill; Gov Hughes scores Repub Legislature's decision to use deficit spending to avoid having to raise taxes during '69 election yr; Sen Schiaffo says Legis will eventually have to turn to income tax; NJ League of Women Voters urges income tax

Nixon authorizes allocation of additional $10-million for food and mod; confs with Wilson by phone and exchanges cables with Gowon in effort to prevent reprisals against Biafrans; White House repts no direct response from Gowon, but says Wilson reassured Nixon that Nigerian forces would show restraint; US diplomatic and aid operations are being coordinated by special interagency group headed by Under Sec Richardson; US officials doubt predictions that millions of Biafrans will die of starvation in next 2 days; note large food supplies available on fringes of Biafran territory; put war toll at 2- to 4-million dead; State Dept denies it plans to warn Amers against travel to Nigeria

Repr J B Anderson accuses HR Dem leadership with obstructionism for blocking consideration during final wk of last session of Nixon Adm bill to create Comm on Population Growth and Amer Future; Speaker McCormack says he wanted legis to be cleared by Rules Com 1st

City Natl Bank & Trust of Columbus, Ohio, will make available through over 200 Ohio, W Va and Ky banks program to pay Fed income taxes with BankAmericard; plan detailed; involves annual interest charge to cardholder of 15%; 6 Colo banks to offer similar plan through 250 agent banks in Colo, Wyo, Mont, ND and NM to Master Charge cardholders; Seattle Natl Bank of Commerce has been using variation of program for yr; major commercial banks do not plan to introduce program now; bank draft form City Natl will send to cardholders illus

Mayor Alioto withdraws as Dem gubernatorial candidate, citing burdens of campaign and other pol and personal duties; Unruh nomination seen assured; both deny consultation on matter