Newspaper Page Text
rm 3 B h 3 M: ft
•
| _ 4
j
■
4 9 X * r ^ /. r* M ■ ’ BE** B , * vY A*
m JfTItWMMMNM
* Y. 'mam
'r if
If?
-i . . a , /*■
-/ j
iiiillixwi I! II
nn
' ■:
■
a?
■
X- T ! ’ i J}'- A
m V I ■*
m "* :•
,
P*" YT
m
WATER ACCIDENT—A doctor and a fireman administer oxy
gen and try to give artificial respiration to Ma|. Gon. Ver
non E. Pritchard, Army public relation* chief, following
explosion of a yacht he was aboard at Washington. Later
Gen. Pritchard was pronounced dead.
The WORLD This WEEK
THE ECONOMY: Truman Seeks to Bolster
PRESIDENT X this week with TRUMAN what economic agreed
experts have been saying for
months. Business conditions, he
conceded in his midyear economic
report to the "Congress, are riding
downward.
Prices, he reported, have dropped,
mostly in “moderate and orderly”
fashion, about nine per cent below
the August, 1948, peak at wholesale.
Wages have risen in some industries
but they have been offset by fewer
hours of work so that real earnings
have stayed about even. Corporation
profits before taxes in the last six
months were 13 per cent under those
of the last half of 1948, and farmers
are netting eight per cent less than
they were a year ago.
“Employment (averaging 58,000,
000) is still high, but unemployment
has been increasing and veterans and
others leaving school are finding
it much harder to obtain work than
a year ago,” the President said.
“Production is still high, but it is
lower, particularly in some industries,
than it was last year. Business invest
ment is at a high rate, but plans for
new investments are being made with
caution.”
But there is no reason tor panic.
“Unemployment has not risen to the
dangerous levels which would call for
all-out emergency measures. . . . The
economic situation does not cal] „ for ,
an immediate and sweeping expansion
of public works.'
Urges Boosting of Output
What it does call for. the President
said, are new laws to bolster jobs
and production, consumer income and
buying power—laws to bring the an
nual output to “well above $300,000,
000.000” in a few years, or one-fifth
higher than today's national produc
tion.
The business outlook caused Mr.
Truman to reverse his field on taxa
tion. He cancelled ....... his call, made .
earlier this year, for a four billion
lax increase and he bowed to the idea
of a temporary deficit spending policy,
Agriculture
Farmers' Pleasant Prospects
The Agriculture Department says
American farmers now can expect
another season of “tremendous” farm
production with livestock feed grains
approaching an all-time peak.
Only last year’s cfop volume will
exceed this year’s, the department
- officially .estimates, and 1949 produc
tion might have set a new record were
it not for bad weather and plant dis
eases which caused a sharp drop in
wheat prospects last month.
lo^^: As the sericulture 8 a C ^ e experts cC^^; see it it
1,200,000,000 bushels—the third larg
est in history and about 20 pier cent
above average, more than enough to
fill prospective domestic and export
requirements. The corn crop, at
3,530,185,000 bushels, will be only
slightly below also'of last year's. There arc
prospects a huge oats yield.
With the heavy carryover of feed
grains from last year, there will be
greater supplies than ever to feed
farm animals. This fact, says the de
partment, should encourage farmers
to keep their meat production high.
n Consumers also , should , . , have , _ a good ,
year, the department reports for high
production should bring further drops
m farm prices. It sizes up some sum
mer price prospects this way:
Hogs: Prices around present levels,
but should drop as the peacetime
record crop of spring pigs doves to
market in the fall. Cattle: Slight
advance in prices of better grades
instead of the usual sharp rise. Milk
and Milk Products: Increases prob
ably less than the usual season rise,
Apples and Pears: Declines expected
to levels lower than last year s. Grains
and Fats and Oils: Lower prices indi
cated by record supplies.
_
Since the end of World War II, the
American Navy has worried about
the almost invisible and deadly
snorkel submarine. Perfected by the
Germans, the snorkel is a “breathing”
sub which operates on its regular
diesel engines instead of batteries
while submerged. It thus can remain
below the surface almost indefinitely
and can travel at about twice the
normal submerged speeds. With onlv
a foot of its “breather tube” exposed Tadar
above water , conventional
equipment finds the sub almost lm
possible to locate,
The Russians picked up>permany’s
snorkel secrets at the war s end and
reportedly went into heavy produc
tion. The Reds now have about 250 or
300 submarines and the problem of
coping with snorks in a future war
furrowed many Washington brows,
. This week information was casually
revealed that the Navy has a new se
cret device that can see the snorkeL
Testifying before a Senate subcom
mittee, Vice Admiral J. D. Price, vice
chief of naval operations, revealed
that in two years about 39 per cent
of the lanri-hneof) n lanp= and about
il
11
;V
v
V
TRAIN ACCIDENT—Nearly 20 cars of a 112-car Pennsyl
vania freight train pile up like leaves after the train was
derailed near Newton Falls, O. The accident, which caused
rerouting of traffic for 12 hours, resulted when automatic
broke* locked after the load car became uncoupled.
As Cartoonists View the Economic Situation
Ysmi A \Ti liT^i '1 . / \; / ■V S’
\\ V ra
ft
<* >-Afe Y" &
y V
\ '*'■
;\£l Ci
V ! v
/
1 ^ v.
,->* jJNESlsgp V'-. • -. S-3 ^**-?*^
*. ..
Summert, Buffalo Evening Newt
WASHINGTON TUG-OF-WAR
“We cannot expect to achieve a budget
surplus in a declining national econ
omv,” he said,
Now he wants Congress to repeal
the tax on the transportation of goods'
liberalize provisions for carry-over of
losses by corporations; raise estate
and gift taxes; increase the minimum
wage to 75 cents an hour and broaden
its coverage; extend unemployment
compensation; raise and extend old
age benefits; improve the program of
farm income supports; encourage in
vestment in underdeveloped areas
abroad and in new fields at home.
“The whole world is watching
developments in the American econ
omy,” he said. “Our own people insist
u P on the maintenance of prosperity.
and will not tolerate a depression"
Economists ’
inferred from the re
port that the President was trving to
“keep business calm.” In New York s
TELEVISION: Four Times as Stations
“Pour times as much television
within two years." That prospect was
opened by the Federal Communica
tions Commission this week through
its proposal that 42 new television
sen dmg channels, in addition to a
dozen already being used, be alloted
to television broadcasters.
The new channels are in the “ultra
hi high spectrum, used . until now most
*y QmyroPf x per mi entcitiorr. E x i s t
channels use "very high" frequencies,
The new frequencies would be out of
reacn of most existing receiving sets
Verte '" S Sf *‘ Cla! at "
taChmenU Were added ‘
SCIENCE: Navy Sees the Snorkel
31 per cent of the carripr-based
planes now on order will be equipped
with the new anti-sub equipment.
Details were not revealed. But ex
Quotes
Illinois Health Department, de
scribing kissing: “A pleasant
greeting—an agreeable saluta
tion and a boon to the mental
health of a nation.”
President Truman: “In recent
months, we have seen the abate
ment of postwar inflationary
forces. We are now in a transi
tion period, in which we must
work toward conditions that will
promote a more stable and en
during growth -in production,
employment and purchasing
power.”
LL Gov. Joe E. Hanley of New
York: “When you get to the point
of using free speech to destroy
this nation you should be treated
like any traitor, and shut up."
U.S. PUBLIC
FOR
FAILING
M a. i :r PRICES
O- -.‘X /f / I * JS
/
* Y T
*. -L
’
! !’ V'
i.
f x
Carmack, Christian Science Monrtoi
HAPPY LANDINGS!
financial district business leaders re
acted favorably to the dropping of
plans for a tax increase—but some
grumbled that he still talked too
much of the “welfare state.*
Economic Talk Looms Large
With the Truman report in top
place, temporarily at least, a full
season of economic talk lies ahead. A
Congress committee this week began
investigating monopoly in the coun
try, to see whether it is on the in
crease. whether there are loopholes
in the anti-trust laws that need plug
ging. and what the people think
should be done. New anti-trust legis
lation may eventually result. The
committee's first witness. Attorney
General Tom Clark, hinted that big
ness in business by itself might be a
target.
Also-forthcoming are Congressional
Expansion of video into^%illra
high" frequencies would maKWpos
sible some 2,245 television broadcast
ing stations in 1,400 cities and coin
munities throughout the United
States. On the present 12 channels
only 543 stations in 221 locations
s. P* j
•
The FC£ said the new outlets could
b r ing tpi m s i nn—scr vicc . “as f ar "
possible,” to all people of the United
States. The FCC will listen to Indus
try comments on the proposals during
thc next month and *'*" °P en P ub)ic
hear,ngs When ‘he pro-
perts said the fact that the equipment
ts airborne indicates strongly that it
works on the radar principle
The Moon, Half-Won
German atom and rocket scientists
say they have won half the battle over
nature's barriers to flying manned
rockets to the moon.
They say they now have completed
the basic theoretical calculations. But,
one informant says, “we are not so
stupid as to disclose our top secret
theories just for nothing.”
Any kind of war production is
banned in Germany, so scientists there
have little else to do but to work on
theories. Top rocket experts recently
formed an interplanetary society for
space research, and they say they have
startling inventions in their files.
“All we need now is the chance—
and the financial aid—to put our
theories into practice,” said Dr. Heinz
Gartman, chairman of the society who
helped American rocket research at
the White Sands Proving Ground in
1947.
j
-re
V
CAR ACCIDENT—Driver "Wild Willy" Sternquist of Chicago
(center) grimaces with pain after the car ho was driving
crashed into a side wall at Chicago's Soldier Field during
a "hot rod" race. Sternquist later was treated for severe
cuts and bruises and injuries to both logs.
Dates
Monday, July 18
Labor Day (Spain)
Wednesday, July to
Independence Day (Colom
bia ).
Thursday. July 21
Loyal Temperance Union Day,
sponsored by the Women’s Chris
tian Temperance Union.
Independence Day (Belgium).
Friday. July 22
Liberation Day (Poland).
Saturday. July 23
Anniversary (84th). establish
ment uf the Salvation Army
Save the Horse Week begins.
Sunday, July 24
National Farm Safety Week
begins.
Pioneer Day.(Utah).
Sidelights
O “Voice oi America" broadcasts
have been sent in Morse Code to try
to get them through the Soviet air
wave blockade. Because the code
sends a more penetrating signal. State
Department officials think tiie Rus
sians find it harder to jam than the
voice broadcasts which have been
blocked in wholesale numbers re
cently.
• The 1949 National Humane Act
A ward was given to Richard Rose. 17,
of Detroit by the American Veteri
narian Medical Association because
he built a special “bumper headgear”
for his dog after his lifelong corn
pan ion lost its sight. The headgear
enables the dog to walk without run
ning mto things. Veterinarians say it
may a ] so help other blind dogs.
• Willy Kuebler. 54. was discovered
ssn:z&xrjztzz
xf K
X
* 1
..
I
V Y
M
: :X
furt, Germany, zoo. (See photo.)
Wearing only a helmet to protect his
head and boxing gloves to protect his
hands, Willy gives his show free But
he makes between $3 and $5 a day in
gratuities,
• King Gustaf V, Sweden's 91-year
old monarch, made big news for
Stockholm's newspapers when he
went bathing in the raw at a seaside
resort to escape the nation’s heat
wave.
. The Unlted Automobile Work,
Union revealed it had bought one
share of stock in each of the 68 com
panies it has under contract. The pur
pose, said President Walter Reutlier,
was to enable union (representatives
to sit in on corporation meetings to
“see if we could not peep behind the
iron curtain "
debates , on the reciprocal
renewing
trade agieements act and on voting
arms-money for Europe.
On another economic frdnt. the CIO
ankVm d S / eel ,Y°f kerS Spuke °l
pis .
Robert R. Nathan, former War Pro
duction Board adviser, which said
that “corporations as a whole can af
ford substantial wage increases."
“If there was ev£r a time both
when wages could be raised without
increasing prices and when wage in
creases would not be likely to result
in price increases, this is the time."
Nathan said. He argued that the aver
age wage earner has no more buying
power than in the middle of 1946. and
that “it is not surprising, under the
circumstances, tnat business can not
sell all it can produce.”
posals are finally approved, the FCC
plans to lift its freeze on new tele
v ision station permits in effect since
,ast October. This freeze was ordered
because t0 ° man >' television stations
*ere getting on the air and causing
t^PCP rhe FCC °" also repeated that it
would re-examine commercial coloi
television if anyone came along with
mthat.....rrmirf hr
tuned in on existing sets Past color
video proposals have been turned
down because thev required too much
sending space and special receiving
equipment.
J * my* mem rnmm M|
' i: wm. ±
: -c
m-^14
Tap
•v. -V
: •*
PLANE ACCIDENT Resc u ers in foreground remove injured
persons from a burning commercial airliner which cr aslto d
and burst into Homos shortly before It was to have landed
at Burbank, Calif. The pilot had |ust reported a fight among
the passengers in which on* man had boon badly b e at en.
Pacific Powers Seek
A nti - Com mun is tBloc
'T'HE State Department has wanned up somewhat to the idea of •
1 Pacific union of nations forming a common front against Com*
munism.
Generalissimo Chiang Kai-shek of Nationalist China and Presi*
dent Elpidio Quirino of the Philippines proposed the after
conferences at Baguio in the Philippines. “Considering the gravity
--e of the Communist menace, ffiey
At Home
Hiss Cose Back in Congress
The case of Alger Hiss began in
Congress last year when the House un
American Activities Committee uncov
ered charges linking Hiss with Whit
taker Chambers, admitted former
Communist spy courier. For six weeks
the spotlight shifted to the courtroom
where Hiss, former higli State Depart
men official, was tried on charges of
lying when he denied passing govern
ment secrets to Chambers and a Soviet
spy ring. When the jury failed to
agree on a verdict last week, the case
landed back in Congress.
This time Representatives Nixon
(R-Calif.) and Velde (R-11L) both
members of the committee, wagged
their fingers at Trial Judge Samuel H.
Kaufman. Velde said Kaufman had
shown bias in favor of Hiss “that, to
say the least, bordered on judicial
misconduct" The Congressmen said
they wanted a probe of the judge's
conduct. But Robert P. Patterson,
president of tine New York City bar
association and former Secretary of
War, warned that it would be a “blow
to the independence of the judiciary”
if Congressmen investigated the
judge whenever they disliked a trial’s
outcome.
After much debate on the floor of
the House, the unAmerican Activities
Committee decided against reopening
the Hiss-Chambers case at this time.
But it left the way open to dig into
it after Hiss is tried again.
In Short . .
Set Up: By the Central Committee
ol the World Council of Churches, a
committee of nine representing 150
church groups in 44 nations to drafl a
protest against interference with
church affairs in Soviet satellite states.
Convicted: Of spying on Britain and
the American airforce for a foreign
power, Marien Kaczmarek, a 40-year
old former Polish artillery officer, in
Manchester, Eng.
Died: In his sleeping car berth.
Beauford H. Jester, 56. governor of
Texas.
ABROAD: New Berlin Blockade
"‘"Last month rgpiesentatix e~ of the
Big Four powers agreed in Paris on
lifting the almost year-long Russian
blockade of Berlin. But since then the
Soviets have imposed a series of little
blockades which western officials
term a breach of the four-power
agreement
Their latest step was to choke off
western truck traffic to Berlin to a
trickle. They closed all highways but
one from the west to Berlin. On the
remaining open road-the Helmstedt
f lrUCk tr ffiC fr ° n ’
300 a day to 96 as (or , four an a hour).
While trucks lined up for two miles,
awaiting their turn to ride the auto
bahn, and fish and food began their
smelly decomposition under Ger
many’s midsummer heat, seven bored
Russian soldiers complacently stqoc*
guard.
What was behind the new block
ade?
One suggested explanation was that
the Russians wanted to cut down on
west Berlin trade to make it less
attractive in (he eyes of the east Ger
mans under Soviet rule.
British military government spokes
men said the western powers were
angered by the blockade and would
take strong action against it. To a
Russian claim that they merely were
attempting to stop the importation of
blackmarket goods, an American of
fleer commented: “Since they have
shut down all points except Helm
stedt it seems obvious there are other
nmtives." Thc U. S. Arms said it would
“should at once organize themselves
into a union for the purpose of aehlev
mg solidarity and mutual
to contain and counteract that com
mon threat."
According to informed s o ur cee,
Chiang and Quirino planned to invite
the American-sponsored South Ko
rean republic. Thailand (Siam), Indo
nesia. Australia and New 7s«h«ii
into the union. But the prime objective
was to get the United States to par
ticipate.
Secretary of State Acheeon had re
jected the Idea as premature two
months ago when it was first men
tioned. According to Michael J, Mc
Dermott. State Department press
officer, Acheson's objections to e for
mal defense treaty still stood. But
McDermott said:
“We have every sympathy with and
interest in efforts of peoples of the
Pacific area to develop close coopera
tive relationships and to move toward
common counsel and mutual assist
ance on the vital problems of the
area.”
Analysts said that this statement in
effect blessed the general idea of Joint
action against the Communists in the
Pacific.
Aviation
Weak of Wrack ctga
Air travel suffered * week of aala
haps.
a Fourteen Americana, include U
of the country’a better known news
paper, magazine and radio reporters,
were killed with 30 others wban a
Dutch airliner crashed in a drenching
rainstorm Twenty-five near Bombay, India,'
a minutes after the pilot
radioed that a violent fight had brok
en out among the passengers, an un
scheduled commercial airliner with
46 persons aboard crashed and burned
the summit of Santa "*
near
Pass near Los Angeles,
a A French military plane plunged
into the sea off French Morocco and
18 persons were killed,
a A U.S. C-54 airlift transport
crashed with three crewmen in the
Russian zone near Berlin,
a A Coast Guard seaplane cracked
up in the Pacific, trying to remove an
ailing passenger from a steamer, but
the plane's 11 passengers were saved.
“piisKja.'WSeit^TliffrTFiicireaETu^lUlifpi
the road despite the Reds,
The new curbing of Berlin traffic
emphasized again the importance of
the airlift which is still roaring on,
bringing about 8.000 tons of food and
fuel daily to Berlin’s western sectors.
Neither traiu nor barge traffic ha*
been affected by thc little blockade.
Britain Cracks Down
BliuilJ ., Labor government faced a
crisis— a fight with labor To crack
down on.a strike of some 12.000 Lon
don dock workers which tied up 127
ships loaded with vital food and raw
materials for Bi itain, it asked King
George VI to proclaim a state of na
tional emc s gency—the first such dec
laration to quell a labor dispute since
the general «-*rike of 1926
Then the government moved troops
into the -trike area and issued 19
sweeping decrees to get the shipment*
movin 8- Under emergency powers,
striker.- could be arrested without
warrants on suspicion that they were
trying to keep others from working,
btit thev could not be drafted to work
or prevented from peaceful picketing,
The strike issue was especially im
portant because of Britain's slumping
economic position, which can be bet
tried only by an increase in foreign
trade Prime Minister Attlee bluntly
called the wildcat walkout a demon
s’tration of Communist "wrecking tac
la ’
s