January 14, 1975

HR Speaker Carl Albert on Jan 13 makes public 'emergency' econ program drafted by Dem study group to revive nation's slumping econ; says HR Ways and Means Com will act within 60 days on legis to cut Fed taxes of low and middle‐income families by somewhere between $10 and $20‐billion; Repr Al Ullman, acting Ways and Means Com chmn, says he will move 'immediately' toward major tax reduction somewhere near magnitude of Pres Ford's recommendations; predicts 'sizable alterations' in tax cut proposal to channel more money to low and middle‐income families than would be case with Ford's plan; Ford, in natl TV address, calls for immediate $16‐billion tax cut and other measures to stem recession; Sen Russell B Long says tax cuts will be needed for 2 yrs; Sen Robert C Byrd calls for more tax cut assistance to lower end of econ scale; criticizes Ford's plan to collect $30‐billion in new energy taxes and tariffs and then funnel money back into econ; most critics of Ford's tax plan focus on his intention to give full 12% rebate on '74 income taxes to taxpayers with gross incomes as high as $41,000; Repr Barber B Conable Jr says tax cuts should not affect anyone with income about $15,000 and Byrd says applicable level should be no higher than $25,000; illus (M)

Former CIA Dir James R Schlesinger tells Pres comm investigating alleged CIA domestic spying on Jan 13 that number of 'misdemeanors' by CIA in last 20 yrs is 'quite small'; tells reporters after meeting that 'certain things did come to light' in rev of CIA's intelligence activities that had been precipitated by discovery of CIA's involvement in Watergate affair; comm members are sworn in by GSA personnel officer Carrie L Gooding; Vice Pres Rockefeller, comm head, says Schlesinger 'made exactly that same statement' to comm, but gives no other details, news conf; Schlesingers predecessor as CIA Dir, Richard Helms, testifies as does CIA Dir William E Colby; David W Belin, whose apptmt as exec dir of comm will be announced Jan 15 by White House, sits in on opening portion of meeting and then meets with Rockefeller; Rockefeller's press seC‐Hugh Morrow says Belin could not stay throughout day because his security clearance has not been completed; says only money at comm staffs disposal at present is $150,000 from Pres contingency funds; Rockefeller says Colby indicated his willingness to have comm talk with present and former CIA employes; says he intends to hear not only from top CIA officials but also from 'the ranks'; Rockefeller says he thinks comm rept will be made public; Chicago Tribune repts on Jan 12 that files kept by CIA included information on businessmen and pol figures such as former White House counsel J Fred Buzhardt Jr and late Repr L Mendel Rivers; Rockefeller says former CIA Dirs John A McCone and Adm William F Raborn Jr will be asked to appear before comm; pors of Schlesinger, Helms and Colby; illus of comm members (L)

HR Dem Caucus votes to abolish HR Internal Security Com, which for 45 yrs, under various names, has been spearhead of anti‐Communist investigations on Capitol Hill; votes to transfer to HR Judiciary Com some of functions and staff of Internal Security Com together with files on alleged subversive work of more than 750,000 Amers collected by its predecessor, HR Un‐American Activities Com; background of com noted; its investigation of Alger Hiss noted; HR Judiciary Com Chmn Repr P W Rodino Jr is expected to halt futher investigations into subversive activities; Reprs R F Drinan, J W Symington, R H Ichord comment (L)

Morgan Guaranty Trust Co lowers its prime rate to 9 3/4% on Jan 13; is first to do so since Apr '74; banks lowering their prime rate to 10% include Chase Manhattan Bank, First Natl Bank of Chicago, Irving Trust Co, Bank of NY and US Trust of NY (M)

Gen Dynamics Corp is chosen by USAF over competing Northrop Corp to produce YF‐16 light weight jet fighter for US and possibly for its allies; initially will produce 650 airplanes for USAF at estimated cost of $4‐billion; Defense Dept is optimistic 350 planes may eventually be sold to NATO allies; notes there is global mkt worth at least $15‐billion for at least 3,000 planes; YF‐16 is expected to cost $6.7‐million per plane and was selected by Air Force after 'fly‐off' with Northrop Corp's YF‐17; is armed with 20 mm gun, 4 Sidewinder missiles, can carry relatively small bomb load for close support of troops, is powered by Pratt & Whitney engine and can fly at 1,600 mph with combat range of 500 mi; USAF Sec John I. McLucas illus with model of YF‐16 (L)