Newspaper Page Text
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Vol. €XX, No. 4.
(abre Jess Wi
\abre Jeis Win
Air Encounfer
By GEORGE A. MacARTHUR
SEOUL, Korea, Jan, 16—(AP)—
Out-numbered U. S. F-86 Sabre
ots damaged two Communist
MIG-15s today in two flashing air
pattles high over northwest Korea.
The U. 8. Air Force said the first
fight involved 38 Sabres and 80
MIGs. Later, 22 F-86s battled the
same flight of Communist planes.
One MIG was damaged in each
battle.
Infantrymen huddled in their
foxholes as subfreezing weather
covered the 145-mile battlefront.
Action was confined to a few small
raiding operations by the Allies
and probes by the Reds.
The two air battles over Sinan
ju marked the second day of jet
combat after a three-day lapse be
cause of bad weather. The Sabres
11so damaged two MIGs Tuesday.
Loss Summaries
Any Allied losses or damage
will be reported only in a week
end summary.
Capt. William A. Todd, of San
Gabriel, Calif., damaged one MIG
in Wednesday’s first battle. The
Red plane pulled away before he
could fire a second burst.
In the second battle, the dam
aced MIG was credited to Maj.
William T. Whisner, Shreveport,
La. Whisner, who has destroyed
four Communist jets, was driven
off by other Red fighters while the
damaged MIG dived for sanctuary
in Manchuria.
Heavy Clouds
Heavy clouds settled over most
of North Korea Tuesday night. It
was the 10th straig{xt night of poor
visibility - and e Air Force
mounted only 64 sorties. Most of
the attacks were radar-aimed
bombardments of Red rail and
supply facilities.
Pilots spotted fewer than 150
vehicles on North Korean roads.
They reported 19 destroyed.
B-29 superforts dropped 110 tons
of bombs on strategic Songchon
bridge.
U. N. carrier-based pilots re
ported they cut rails in 96 places.
Warships pounded® Communist
targets on both the east and west
coasts.
KENNEDY SURRENDERS
LOS ANGELES, Jan. 16.—(AP)
—Bond of $20,000 has been set for
Joseph M. Kennedy, 21, charged
with pulling ‘the first bank rob
bery in Savannah, Ga., in a half a
century.
Kennedy surrendered here after
a cross-continent flight. He fled
from Savannah by air after rob
mm_gthe bank of $5,000 on Janu
ary 3.
He was arraigned yesterday be
fore a U, S. Commissioner.
AHS Beauty Review Is
Slated Here Tonight
Judges for the Athens High School Beauty Review which
will get underway tonight in Fine Arts Auditorium at 8
p. m. will have one of the hardest tasks of their lives when
they seek to choose from forty-five girls of A. H. S. the
“very prettiest” for the coveted title of Campus Queen and
class beauties.
o _u
Lourt Sessions
Confinue Here
The case of Strickland vs. Rid
ling, a civil matter involving tim
berland on the Middle Oconee
River, remained in process of trial
s Clarke Superior Court opened
this morning with Judge Henry H.
VWest presiding, The case began
Ve u-rday.
In the case of Heyn vs. Heyn,
vorce was granted both parties
‘h Mrs. Heyn, who lives in Hol
nd, being granted alimony of
10 per month for thirty-six
nonths,
Peoples Loan vs. Jay was held
cnding settlement. Strickland vs.
©O-Op Cab Company was passed
0 the April term of court, while
4 scitlement was reached in the
fase of Turpen vs, Carey.
. Judgements favoring the plaint
iffs, were returned in the cases
of Phenix Supply Company vs.
Whitworth and Pitney-Bowes,
Inc, vs Lamb.
Scheduled to follow the Strick
land vs. Ridling case is that of
Myers vs. Myers.
. ncontested divorces are to be
‘4ken up Friday with the criminal
docket being called Monday morn-
Mg with Solicitor General D.
{\mrshan Pollock appearing for
e state,
sl i
DEATH PROBED
,ATLANTA, Jan. 16. — (AP) e
Police are investigatin%x the possi
)y of foul play in the death of
. “B-year-old steel worker whose
Padly burned body was found in
"l debris of g converted tourist
curt apartment following an
*lt}'l.\' morning fire today.
The victim, Felton Lawrence
WVilliams, “may have died in the
{)’éf or flhx‘o may have been "“‘2,
o, the fire broke out,” sai
Homicide Detectives H. ‘;lu Bur
dette ang J, W. Ellington.
Siiia eL e f SERVING ATHENS AND NORTHEAST GEORGIA OVER A CENTURY.
Associated Press Service
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Robert H., Kimbrell |
Mr. Kimbrell has been named
1952 chairman of the March of
Dimes campaign in Clarke
county. He is manager of the
local office of Universal C. L T.
Corporation,
Kimbrell Heads
Clarke County
Polio Campaign
March of Dimes Advance Gifts
chairmen have been appointed and
are now at work on the 1952 ap
peal for funds to fight polio, it
was announced today by R. H.
Kimbrell, Clarke county campaign
director.
Walter Wellman, jr., and Wood
son Harris will lead the important
advance gifts solicitation for the
larger gifts to meet Clarke coun
ty’s share in the nationwide ap
peal. Part of the drive is now un
derway and will continue until
the end of January.
“The March of Dimes drive
must secure additional funds this
year to meet the serious financial
crisis in the polio organization,”
Mr. Kimbrell noted. “There have
been more cases in the past four
years than in the previous 10 years
combined.”
“Whereas our national average
polic toll was 10,000, that average
has more than tripled in the past
four years. The National Founda
tion for Infantile Paralysis has
ended each of the past four years,
including 1951, in debt,” he point
ed out. o !
Last year, the Georgia DiVision
of the National Foundation had
to secure additional funds from
the national office to meet near
epidemic conditions in the state
late in the year, he explained.
Detailed plans for the appeal are
now being made and heads of vr
ious divisions will be announced
within the next few days, Mr.
Kimbrell said.
Half of the funds raised in Geor
gia remain here to pay for care of
polio patients in the state. The
other half is sent to national head
quarters for research, profession
al education, and epidemic aid.
The contestants will be chosen
on the bases of naturalness, poise,
grace, and beauty. Judges for the
event, as announced by chairman
of the Annual Beauty Review, Pat
Hudson, will be Claude Hipps,
1951 captain of the Georgia foot
ball team, Miss Jo Ann Fulcher,
1951 Pandora beauty queen,; Burl
Womack, local radio announcer.
A full house is expected by the
members of the committee for the
beauty review. The annual
Beauty Review has come to be
looked forward to each year by
students and towns people. Pro
ceeds from the event are used to
defray the expenses of publishing
the school year book.
Serving as faculty adviser in the
absence of Mrs. W. P. Pickett have
been Miss Ruby’ Anderson and
Miss Frances Nunn.
Eight students have been chosen
to represent the ninth grade, ten
from the tenth, twelve from the
eleventh, and fifteen from the
twelfth grade.
Escort for the Senior contestants
will be alternate captain of the
AHS football team, Bill Saye,
while junior, sophomore, and
freshman escorts will be Larry
Jones, Jimmy Williams and Calvin
Winfrey, respectively. Mistress of
Ceremonies will be Pat Hudson
who is also chairman of the Beauty
Review for the Annual.
The girls will be judged on the
bases of naturalness, poise, grace,
and beauty.
Seniors in the Beauty Review
are Bobby Jean Berryman, Ann
Christian, Julia Ann Coile, Betty
Dixon, Joneita Daniel, Sibyle
Fanning, Jane Floyd, Jean Ful
cher, Martha Jean Hale, Faye
Harris, Marion Hopkins, Rita
Loyd, Helen Rogers, Hilda Shac
kleford, and oyce Williams.
Juniors are Mary Jo Adams,
Martha Howe Chandler, Betty
Cook, Janey Mae Cooley, Kay Dil
lard, Anne Wunt, Shirley Loyd,
Rowena Janes ,Jane Messer, Gret
chen Parrott, Nan Richardson, and
Oliet Wingfield.
Tl:; ten soph;mores alocted ;;;
eida Bryant, Bleanor Crane, Anr
%cy.f’*mmy ‘Hammond, Bar
{Continued On Page Two)
Reds Violafing
Geneva Pact,
Allies Charge
By OLEN CLEMENTS
MUNSAN, KOREA, Jan. 16 —
(AP) — The United Nations com=
mand charged today that Com
munists in Korea “violate every
provision” of the Geneva con
vention protecting prisoner of war
camps from the hazards of war.
The charge came from head
quarters in Tokyo in comment on
a Red report that U. N. planes
bombed a POW camp at Kangdong
Monday night. The statement said
the question would be raised with
the Communists “at the earliest
opportunity.”
There was no hint it was
brought up during today’s truce
talks at Panmunjom. Negotiators
still are deadlocked on how to ex
change prisoners and what will be
done with Red airfields during an
armistice,
The Communists denied two in
ternational Red Cross representa
tives permission to enter North
Korea. Dr. Otto Lehner, Chief Far
East delegate of the International
Committee of the Red Cross, had
flown to Panmunjom with Albert
de Cocatrix seeking permission,
Reds Ignore Swiss
North Korean Maj. Gen. Lee
Sang Cho, Communist delegate on
the prisoner subcommittee, ignor
ed the two Swiss, A minor officer
gave them the same reply the Reds
have made to previous requests
to let Red Cross representatives
visit POW Camps: “No.”
Red China’s official Peiping
radio accused the Allies of trying
“to keep Korea in a chronic state
of war” to “create international
tension.” It asserted the U. N.
command would “have to bear
full responsibility for all the con
sequences” if negotitators fail to
agr~~ nm an armistice. Lo
At Panmunjom Chinese Maj.
Gen. Hsier Fang said the Reds
latest counterproposal for super
vising a truce prohibits importa
tion of war planes during a truce
and therefore guarantees against
a buildup 6f Red Air strength.
But he side-stepped a direct
answer to a repeated question
from Maj. Gen. Claude Feren
baugh: Did that mean the Reds
would not increase “military air
capabilities during an armistice?”
Each time Hsieh replied with a
question of him own.
In the prisoner subcommittee
session the Reds revised the cas
ualty figure from Monday night’s
reported bombing of Kangdong
to 20 captured U. N. troops killed,
15 seriously injured and 40 slight
ly. . hurf. The o{ginal report was
more than 10 killed and 60 in
jured. The Reds have said they
held 1,491 South Koreans and one
American at Kangdong. e
Postal Receint ‘
Postal receipts at the Athens{
Post Office were the highest ever |
for the year just ended, Postmas
ter H. C. King said. .
From Jan., 1, 1951 to Dec., 31,
1951 total postal receipts were |
$269,026.13 as compared to $254,-
994.15 for the previous year. Re
ceipts for 1951 exceeded those of
1950 by more than 5% percent. ‘
Statistical bureaus use postal |
receipt figures as indicators of |
business conditions. Mr. King at
tributes the increase here to the?
general upswing in business and |
to faster and better air mail ser
vice out of Athens. E
Six air mail flights are schedul- !
ed to leave the Athens airport
daily, and a letter sent to any
where in the United States by air
from Athens today will reach its
destination tomorrow.
Mr. King succeeded Jonas R.|
Myers as postmaster on the first
of January this year after interim |
appointments had been served by !
J. Fred Bishop and Ellison B.|
Stone. He is an alumnus of the
University of Ga., class of 1922, ‘
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. .
UN Highlights |
PARIS, Jan. 16 — (AP) — The
United States announced today it
will have important new proposals
to make to the United Nations dis
armament Commission when it
begins its work.
U. S. Delegate Ernest A. Gross
made this announcement in a
speech urging the U. N. Political
Committee to send new Russian
atomic proposals to the Disarma
ment Commission. He did not
specify what the new U. S. pro
posals would be.
A spokesman said the proposals
would be contained in the first of
a series of papers on atomic con
trol and conventional arms which
the U. S. will present to the com- |
mission. The new group must
start its work before Feb. 10,.
prouably in New York, |
In his speech, Gross also called
on Soviet Foreign Minister An
drei Y. Vishinsky to keep hands off
the Korean truce talks now going
on at the front.
ATHENS AND VICINITY
Partly cloudy and continued
warm today, tonight and Thurs
day. Low tonight 55; high to- ]
morrow 68. Sun sets today 5:46 l
and rises tomorrow 7:39.
GEORGIA — Partly cloudy !
with little temperature change |
today, tenight and Thursday. ‘
TEMPERATURE !
Highell .. ...
T T s S e |
Mean ..vv svse soss ssse vnasld
Nogehl ... . L eemnci A 8
RAINFALI{ ’ :
}‘fihi" last 2;, HOUTE s .go
1 Total gineg” January 1 .... .31}
f Q‘Lfifi\/;ince Januaty'.. 1. 2.04'
Average January rainfall .. 4.84
ATHENS, GA., WEDNESDAY, JANUARY 16, 1952,
Truman Asks $5 Billion More In
Taxes, Wants Loopholes Plugged
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WHERE STREAMLINER MAROONED — Map locates
Donner Summit near which the streamliner City of San
Francisco with 222 passengers is marooned by high
snows in the blizzard-swept Sierras. Two rescue trains,
preceded by snow plows, were trying to push through to
the stranded train.— (AP Wirephoto Map.)
Snowbound Streamliner
BY JOE LIPPER
COLFAX, Calif., Jan. 16.— (AP)—Snowplows gnawed
rescue paths throughout the night in drifteu Donner Pass
toward 222 persons snowbound for their fourth day aboard
the sleek streamliner, City of Can Francisco.
Southern Pacific officials said they hoped to begin mov
ing passengers out at daybreak to a nearby lodge if a high
way plow could clean a five mile-exit path.
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NEWS CHIEF
Edward R. Trapnell (above),
former Memphis newspaper
man, has been named head of a
new nine-man government com
mittee to determine what infor
mation federal agencies may re
lease for publication. Trapnell,
41, a VMI graduate, is on leave
as associate director of informa
tion services of the Atomic En
ergy Commission. — (AP Wire
photo.)
A ‘ w.
Winners in the Athens Lions
Club Amateur Show, to be held in
the Fine Arts Auditorium, Jan
uary 25, will be featured on an
Atlanta television Show early in
February, it was announced today
by J. W. Henry, Lions Club pres
ident.
The weekly television show,
Stars of Tomorrow, presented in
Atlanta, will present the winners
of the Amateur Show here on Feb
(Continued On Page Two)
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The trouble with the guy who
thinks he knows all the answérs is
that the questions confuse Fim, |
Downslope, an S. P. railroad
plow had pushed within six miles
of the locked-in westbound train
by 1 a. m. (4 a. m.,, EST). A re
lief train snuggled close behind it.
Snow was as much as eight feet
deep.
As rescuers worked through the
night the marooned passengers
huddled in the 20-degree chill of
the 7,200-foot Sierra Nevada win
ter. °
They were wrapped in blankets.
Fuel oil for heat ran out Monday
noon.
Snow drifted high against the
windows., Drifts buried the en
gine.
Some aboard the train were sick,
victims of carbon monoxide fumes
from a gas heater. However, a
railroad doctor who went in via
dog sled and snow tractor said
most of the 60 stricken had re
covered,
Only four had made it out from
the train. They told a story of
cold and chill, and of heroic work
by a doctor and five nurses aboard
+o defeat the deadly gas.
They rode out on a snow tractor
yesterday.
Four Servicemen
The four, all servicemen, still
were sleeping this morning at
Nyack Lodge, five and a half miles
downslope.
That was where rescuers plan
ned to begin taking the 192 re
maining passengers at daybreak
if the snowplows could complete
a road. There are 30 in the train
crew.
At the train end, the exit path
would be only a quarter mile from
the streamliner.
Rescuers said some 20 civilian
cars would drive the five miles
and meet Weasel snow tractors.
The Weasels would shuttle back
and forth with passengers.
The passengers would then be
taken to Nyack and later transfer
red to a relief train, one of two
held at Colfax. Colfax is about 35
miles downslope to the west.
One of the two relief trains has
plush Pullman and club cars for.
the passengers. The other carried
12 of the little box-shaped Weas
els, which churn over the snow on
tank-like tracks.
The passengers had ample food,
carried in by a public utilities
company Weasel,
A relief train had started out
with three Weasels aboard, but
they left the train downslope only
to bog down in the heaping snow
drifts.
2nd Relief Train
From the east another relief
train stopped for the night after
reaching within eight miles of the
streamliner, which is stalled about
150 miles northeast of San Fran
cisco.
The streamliner was packed in
a tight valley. It was described
as beneath a rocky ledge and safe
from danger of avalanche. &)
« "Phe four servicemen who made
(Continued On Page Two) ]
Legislature Approves
Cuts In Property Tax
ATLANTA, Jan. 16.— (AP) —Legislative approval of
Governor Herman Talmadge’s proposal to all but abolish
the state property tax and save taxpayers almost $7 mil
lioi annually was speedily completed today.
The Georgia Senate for the second time within a year
approved the measure by a vote of 42 to 5.
The proposed constitutional amendment to be voted on
by the people in November would reduce the state prop
erty tax from five mills to one-fourth mills. g
Solon Declares
Truman Is Best
Bet For Demos
By MARVIN L. ARROWSMITH
WASHINGTON, Jan. 16—(AP)
Senator Humphrey (D.-Minn.)
said today the Democrats can’t
win the presidential election un
less they nominate a “consistent
‘Fair Dealer’ and a warm support
er of the Administration’s foreign
policy,”
The Minnesota lawmaker told a
reporter President Truman would
fill the bill “better than anyone
else because I obviously am talk
ing about the kind of program for
which he has fought.”
But Humphrey added: “We have
other good Democrats who could
qualify and win the election” if
Mr. Truman decides not to seek
another term.
Senator Capehart (R.-Ind.) said
he believes the President will run
again, e i
“The Demacrats in my opinion
haven’t anyone else who could
even make a race of it and I think
Mr. Truman knows that,” Cape
hart declared.
Taft Backer
Capehart is backing Senator
Taft of Ohio for the Republican
Presidential nomination. But he
said he is convinced “any Repub=
lican nominated can win this
year.”
Humphrey conferred with the
President Monday and said after
ward that Mr. Truman had kept
him guessing on his plans,
Humphrey reported, however,
that Mr. Truman had told him he
“wants a liberal platform, a liberal
party and a liberal candidate.”‘
The Minnesota senator said to
day he agreed entirely with the
President on that, and added:
“Unless the Democratic nominee
is a true liberal, a consistent ‘Fair
Dealer’ and a warm supporter of
(Continued On Page Two)
Forward With Effifif’fffi
President Aderhold’s
Report Is Optimistic
By CLAUDE DAVIDSON, JR.
Although the University of
Georgia observes the 167th an
niversary of the granting of its
charter on Jan. 27, the annual re
port of its President is not primar
ily a review of past progress.
The report of Dr. O. C. Aderhold
is a record of progress but it is
also a report of the beginning of a
new half-century of service to
Georgians. Published this week,
it is entitled “Forward With Con
fidence.”
As reports daily indicate that
Georgia is moving rapidly toward
full assumption of its title of “Em~
pire State of the South,” President
Aderhold charts a course which
will tightly link the resources of
the University with those of the
state.
Even as his report calls at
tention to deficiencies which must
be eliminated, it is filled with op
timism. The report is illustrated
with numerous charts and photo
graphs and covers the 1950-51
fiscal year.
President Aderhold writes that
“with the continued cooperation
of the faculty and students of the
University, the 27,000 loyal alumni
and alumnae, the Board of Re
gents, the Building Authority, the
General Assembly, the Governor,
and the people of the state, we
look forward with confidence to
a period of steady growth and
greater service to Georgia.”
Growth Envisioned
This growth and service is en
visioned in the report as includ
ing an enrollment of 10,000 in
Athens alone and an investment
of $30,000,000 in physical facili
ties by 1960, and an annual increa
se of $2,000,000 for research which
will “repay this investment 10-
fold to the taxpayers of Georgia.”
The University, which taught
it first student in a log cabin over
150 years ago, today covers the
state with its services. Through
agricultural extension and experi
ment stations, general extension,
the Atlanta Division, 5 off-campus
centers, and its Athens teaching
ar;.j research program, the Uni
vessity annually reaches millions
of Georgians,: + . Lokt &BB
Through no phase ‘of its work,
Dr. Aderbhold reports, does the
Read Daily by 35,000 People In Athens Trade Area
Again mustering the kind of
strength he wielded on most issues
last year, the Governor engineered
overwhelming House approval of
the tax cut yesterday. The vote
was 168 to 15 despite opposition
of Speaker Fred Hand, ordinarily
an administration stalwart.
The measure approved by the
House is a substitute which keeps
the present five mill state tax in
effect on banks, but reduces it to
one-fourth mill on all other pro~
perty,
Passed by the Senate last year,
the measure now goes back there
for agreement on the House sub
stitute, Talmadge said today he
expects quick approval of that
body, and feels confident the vot
ers will write the reduction into
the Constitution next November.
“Good” Substitute
Sen. Osgood Williams of Craw
fordville, a minority leader, agreed
that the Senate would quickly ac~
cept the House substitute. “It’s
good,” he said. “It will pass easi
ly.ll
The amendment, on the basis of
collections last year, would re
duce taxes about $6,500,000 an
nually, effective in 1953.
Taimadge, who has previously
announced he plans to cut the tax
by executive order this year, said
today he will issue that order
“sometime this spring.” )
A rougher voyage appeared cer
tain for another of the Governor’s
proposals, a Senate bill to amend
election laws, which most news
men interpreted as designed to
keep President Truman’s name off
the ballot in Georgia. They were
aided in that interpretation by
some administration leaders.
But Talmadge took sharp issue
with that concept, saying in a pre
pared statement that “the bill does
not, as some newspaper writers
seem to think, juggle the general
election law.” |
The bill, introduced by Sen.
Grady Rawls of Albany, does pro
hibit the name of any candidate
for President from appearing on
the ballot. It also ereatesa board
composed of the Governor, Attor
ney General and Comptroller Gen~-
eral with final authority to rule on
(Continued On Page Two)
| University reach more people than
through the state-wide efforts of
the College of Agriculture. Pres
ident Aderhold estimates that last
}year personnel of the agricultural
extension service alone made 2,-
000,000 educational contacts. The
University, through its integrat
ed program for agriculture, op
erates experiment stations in every
‘major soil and climate area in the
state,
The President is high in his
praise of faculty morale, scholastic
achievement, and student conduct.
A full- and part-time faculty of
996, including extension and ex
periment station personnel, taught,
a student body with a cumulative
enrollment of 15,585, during the
regular session of three quarters,
and 8,318, during the summer.
These figures include both the
Athens campus and the Atlanta
Division, and extension classes.
2,213 Degrees
During 1950-51, the Athens cam
pus had students from 158 Geor
gia counties, 42 states, and 14 fore
ign countries. Including the.Atl
anta Division, 2,213 degrees were
granted.
With reference to enrollment,
the President says that “the state
should move as rapidly as pos
sible toward elimination of all or
most all tuition and fee charges.”
Only 20 per cent of Georgi’s high
school graduates attend college, he
points out, whereas education sur
veys estimate that at least 50 per
cent of the nation’s high school
graduates could profit by a college
education,
Significant among the activities
of the 11 schools and colleges in
Athens have been the re-accredit
ing of the School of Forestry, the
establishment of a Division of Fra
duate Studies in the College of
Education, and the accrediting of
the Division of Landscape Archi
tecture in the College of Agricule
ture.
Other schools and colleges on the
Athens campus, all of which have
achieved much in the fields of
teaching and research, are Busi
ness Administration, Law, Jour
nalism, Home Economics, Phar
macy, Arts and Sciences, V,et(;rin—
ary Medicine, and the Graduate
School. ‘
HOME
EDITION
Pay-As-We-Go
Mobilization
BY STERLING F. GREEN
WASHINGTON, Jan. 16,
—(AP) —President Truman
called today for a 1952 tax
increase approaching five
billion dollars by bousting
“some” rates and plugging
loopholes.
But Mr. Truman dropped,
for the present, his goal of a
pay-as-we-go mobilization.
And in seeking new revenue,
which many congressional
tax leaders say they will net
vote, the President did net
specify whether the burden
should be added to business,
income, or excise rates — or
all three.
His annual economic m to
Congress forecast the “mgsml
cult” year of the armament built
up, large federal deficits, some
civilian snortages but few hard
ships, and a “precarious” price
problem,
Mr. Truman fixed two major
goals for this “year of strain®;
First, a 5 per cent rise in national
output; second, one and a third
million more men and women at
work,
His want-list of legislation was
long. It began with a two-year
extension of the defense produe
tion act; the repeal of “weakening”
price control amendments; im=-
proved farm price supports; stron~
ger curbs on consumer and bank
credit; and so on to a total of a
dozen laws.
But the shocker, as far as Con~-
gress was concerned, was the
President’s calm demand for the
rest of the “10 billion dollar er
more” tax raise he requested last
session—of which he got omly
about $5,400,000,000.
No Increases
Tax-writing leaders of beth
houses have stated publicly %‘y
will not increase rates in 1
after piling 15 billions onto the
country’s tax bill in the last year
and a half. Some repeated the de
claration privately today.
These congress members, as
well as several white house fiseal
advisers, had expected Mr. Tru
'man to emphasize the elimina
tion of so-called loopholes and
“inequities” by which the Presi
dent says some well-to-do groups
have escaped their full share of
the tax burden.
The- loophole-stoppers he has
mentioned would, in fact, provide
two to three billion dollars in re
venue, amounting to half or more
of the new request. They are ex-~
‘pected to get a better hearing than
‘requests for higher income, busi
ness, or excise rates.
But Mr. Truman, telling b&
gress he expects an eight
dollar deficit this fiscal year, end
ing June 30, and a “dangerously
large deficit” of about 15 billion
dollars in the following year, asked
for both revenue - raising ap
proaches to minimize the red ink.
“I urgently recommend that the
Congress, as a minimum, provide
additional revenues in theé amount
by which last year’s legislation fell
short of my recommendations,”
he said. .
Loophole Elimination
“This can be achieved by eli
minating loopholes and special
priviledges, and by some rate in
ereases.”
Once the peak of military spend
ing is past—opossibly in fiscal 1954
—the Federal Revenues thus bels
tered would cover all federal costs,
the President said, adding:
“It is important that we return,
as quickly as possible during the
period of defense mobilization, te
a current pay-as-we-go basis for
government financing.”
The President may be more spe
cific about his tax proposals in the
budget message, due next Monday,
or in a special tax message later.
He was abundantly definite on
another point, however-—he does
n't want Congress to avoid a tax
increase by slashing the spending
program. Mr. Truman put it fhis
way: .
“A balanced budget, achieved
the easy way by scarificing the
defense program and putting the
balance of world power in the
hands of the Kremlin, would be
false economy.”
The President did not forecast
inflation, as he had a year age.
There is “no certainty at all” in
forecasts of consumer spending,
he said. If families avoid spend
ing and continue saving at the high
rate of last year, price pressures
may remain moderate.
On the other hand, personal in
comes and money supply will rise
as red-ink defense spending soars;
and the saving accumulated will
add wallop to the inflationary
forces if another buying spree be
gins.
Precarious Situation
“This ig a precarious situation.”
Mr. Truman summed up. “It is
essential that we maintain and
perfect the policies which will
effectively curb such an inflation
ary outhurst.”
The .[resident’s council of ec#
onomic advisers, headed by Leen
Keyserling, in a 187-page economs
ic re\;&w sent to"Coagrfig along
wi e ‘message; fore
saéfh Onfymenw’ increate
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