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FAIR, WARMER SUNDAY
VOL. LX, No. 34-S ANN ARBOR, MICHIGAN SATURDAY, AUGUST 12, 1950
FOUR PAGES
UN Forces
Launch New
Attack for
Pohang
,.
Tax Increase
Approved by
Senate Unit
To Raise Income
Taxes by 3 Billion
WASHINGTON--(P)-The Sen-
ate Finance Committee voted
unanimously yesterday to increase
individual income taxes by about
$3,000,000,000.
This is what it will mean, if
the Senate and House approve, as
they are expected to do:
1. Uncle Sam will begin digging
deeper into the pockets of over
50,000,000 individual taxpayers on
October 1. Withholding of wages
andsalaries, after personal exemp-
tions, will jump from the present
15 per cent to 18 per cent.
2. The actual increase in taxes
will be around 20 per cent for mil-
lions of persons in the lower in-
come brackets. For 1950, the pre-
sent tax would apply on three-
fourths of income, and the higher
rates on one fourth. In 1951 and
thereafter the higher rates would
apply on all income.
3. GI's in areas of hostility
'probablywould pay no tax at all,
and their officers would get re-
ductions in their taxes, too. The
tax exemption would not apply
to service men and women out-
side of war zones.
THE COMMITTEE instructed
its staff to work out exemption
figures which would erase taxes
on the service pay of the GI's be-
low commissioned officer rank.
Officers probably would get the
same size exemption, but they
still might have some taxes to
pay, because of the size of their
income..
Yesterday's action completed
Committee approval of the major
provisions of President Truman's
"first installment" $5,000,000,000
tax boosting program. He sent it
to Congress last month to help
pay for the Korean War and for
this country's new armament pro-
gram against Communist aggres-
sion.
The Committee Thursday, also
by a unanimous vote, approved a
$1,500000,000 a year increase in
corporation taxes, raising the top
rate from 38 per cent of income
to 45.
'U' Economist
Backs House
ControlsBill
"It is definitely preferable that
the administration be given the
discretionary auhority for higher
taxes and direct controls," Prof.
Richard A. Musgrave of the eco-
nomics department told The Daily
yesterday.
However, the Associated Press
reported that the fight had begun
in the Senate over Congressional
a control over price-wage-rationing
measures.
THE HOUSE voted Thursday to
leave the decision entirely up to
President Truman. The Senate is
debating a measure which would
do the same thing.
Commenting on the action by
the House in giving President
Truman a free hand, Musgrave
declared that these controls
should be introduced in stages,
but not before a much more
rigorous tax and credit policy
is adopted.
"If you introduce direct con-
trols too soon," he said, "they will
be worn out by the time you really
needed them."
* * *
THE BEST ACTION to take tc
begin with is controlling strategic
materials and consumer's credit;
then the stage would be set for
price-wage controls, if needed,
Musgrave asserted.
Sen. Robert A. Taft (R.-O.)
said the Senate and House
measures would be handing to
the President "complete and ar-
Europe Assembly
OK's Defense Plan
STRASBOURG, France-(OP)-The European Consultative Assem-
bly adopted last night, 89 to 5, with 27 abstentions, a motion by
Winston Churchill urging creation of a United European Army for
defense of the West.
The motion, as revised in a 20-man committee which included
the veteran British Conservative leader, provides that the Unified
army would serve under a European ministry of defense.
CHURCHILL SAID he would not be a candidate for the proposed
post of defense minister.
He urged in a speech the creation of a unified army, including
German troops, and the dispatch of large armed forces from
4 Britain and the United States to
FROM PARACHUTES TO SNAP ROLLS:
12,000 See Aerobatic Flipf lops at Wayne A irport
t
1
t
1
By WENDY OWEN
An estimated crowd of 12,000
watched stunters and aerobats
perform feats that turned the
stomachs of veteran fliers at the
opening of the third Internation-
al Air Fair at Wayne County Air-
port ,yesterday.
Thrills came quickly as the crack
Cole Brothers team snapped into
action. As one parachuting mem-
ber landed neatly in the white
circle in front of the grandstand,
the rest of the team performed
such aerobatic miracles as ver-
tical snap rolls, chandelles and'
formation Immelmans.
SPECTATORS gasped as two of
the daredevils swooped head-on
and missed a crack-up by a series
tt
Truman To
Shun .UMT
Progran
WASHINGTON -(p)- President
Truman thinks this country should
have compulsory military training
for all youths, but he won't press
for such a program at this session
of Congress.
This was disclosed today by
Presidential Secretary Charles
Ross.
e * *
ROSS TOLD reporters that Tru-
man-who has been turned down
on all of his repeated requests for
Congress to set up Universal Mili-
tary Training (UMT) - still
strangly favors the plan.
But Ross said Truman doesn't
want the controversial training
program to come up at a time
when it might interfere with so
much legislation he considers vi-
tal to Korean war needs.
Yet Ross hardly had completed
his comments before George Craig,
National Commander of the Amer-
ican Legion, left a conference with
the President and announced "The
Legion will go all-out to get a
UMT bill through Congress this
year."
* * *
HERE'S CRAIG'S IDEA: Put
through a bill which would give
the President the power to start a
civilian training program when-
ever he thinks the situation will
justify it.
This would get around one im-
mediate criticism of a UMT pro-
gram now: that it would be silly
to take 200,000 men out of the
Defense Department to run UMT
when every man is needed for
the Korean war.
Craig told reporters: "I believe
that the President favors this pro-
posal. In my opinion he is for it."
FBI Arrests
SuspectNo. 7
NEW YORK-(A)-The F B I
yesterday nabbed suspect No. 7 in
the Harry Gold-Dr. Klaus Fuchs
atom spy case.
She is Mrs. Ethel Greenglass
Rosenberg, accused of conspiring
with her husband Julius and
others to recruit her brother, Da-
vid Greenglass, into gathering
"classified information concern-
ing the atomic bomb for the So-
viet Union."
The small, impassive Mrs. Ro-
senberg was held in $100,000 bail
after Chief' Assistant U. S. Attor-
ney Miles J. Lane said she and
her husband made preparations
to leave the country after the ar-
rest of the confessed atom spy
Harry Gold.
guard Western Europe against
Soviet aggression.
"Apart from the establishment
of the American base in England,"
he charged, "nothing has been
done to give .any effective protec-
tion to our peoples from being sub-
jugated or destroyed by the Rus-
sian Communist armies, with their
masses of armor and aircraft."
He said the creation of a trut-
worthy defense system within the
next two years would lessen the
threat of a third world war.
* * a
THE CONSULTATIVE assembly
is the lower house on the Council
of Europe, an international dis-
cussion group set up on parliamen-
tary lines. The 125 delegates are
from 15 nations. Presumably Chur-
chill wishes the Council to ask
member governments to merge
their national armies. He said his
motion was intended as "warning
and guidance" for the Western
World.The Assembly itself has no
power to create a European army
or a defense ministry.
Paul Reynaud, a former French
premier, proposed the creation of
an international defense ministry
for Western Europe in a speech
before the Assembly Wednesday
and suggested Churchill to handle
the job.
Jebb Warns
Aainst New
Aglcgression
LAKE SUCCESS-(P)-Britains
Sir Gladwyn Jebb told the UN
yesterday the forces of Commu-
nist imperialism, repulsed in Eu-
rope, are concentrating in Asia
"for the kill."
"What has happened in Korea
simply must not be allowed to oc-
cur again." Jebb said, citing Bur-
ma, Indonesia, Indochina, the
Philippines and India's Hyderabad
s t a t e as Communist-menaced
areas.
* * * .
JEBB TANGLED with Soviet
Deputy Foreign Minister Jakob A.
Malik in a renewal in the Security
Council of the bitter oratorical
battle over Korea. Malik brushed
Jebb off with a suggestion to tell
it to the British Museum - and
then spent 45 minutes counter-at-
tacking American declarations of
Russian responsibility in North
Korea.
When the day's debate ended,
the Council found itself right
where it was at the start. The
procedural stalemate continued
as tight as ever.
Malik argued that General Mac-
Arthur, UN commander in Korea,
ordered President Syngman Rhee
to attack North Korea and pro-
mised American troops and planes
to help him. He said the Ameri-
can delegation here is shedding
"crocodile tears" about Korea but
that actually the U.S. is interested
in nothing but investments in Ko-
rea, in cheap labor and in a mili-
tary bulwark in Asia.
DETROIT-OP)-A young pilot
from Oak Park, Ill., was killed
yesterday when both wings of his
midget plane collapsed as he
flew in a race before 12,000 spec-
tators at the International Air
Fair.
James E. Vosyka, 21, crashed
to his death at the Detroit-
Wayne major airport.
of inverted snap rolls, turning over
and over as they rose into the air.
Caro Bayley brought thrills
and chills as she maneuvered her
slick, tiny, black and white plane
practically on top of the run-
way. Her specialty was hammer-
head stalls and she completed a
beautiful knife-edge slice which
carried her plane at a 90 degree
angle right above the run-way.
Both F-4F and F-86 jets con-
tributed to the noise and mayhem
as they staged simulated straffing
attacks on the air-strip; their
speed' caused amazed gasps from
the stands.
BEVO HOWARD created moreI
air havoc in a thrilling demonstra-
tion of what can be done with
a specially constructed Beucher-
Jungmeister. Daily photographer
Frank Kelly who sneaked in close
for a look at the plane reported it
a mass of exposed wire neatly cov-
ered with three coats of white,
paint for beauty.
The Jungmeister, with graying
Howard at the controls, demon-
strated precision circle eights
and a screaming vertical eight
which brought him within inch-
es of the field and back up to
close his figure.
In a special demonstration of
sky Howard cut a ribbon suspend-
ed between two poles only 12 feet
off the deck.
Howard is the current national
aerobatic champion, and won his
crown at the recent Miami com-
petition.
TO ADD TO THE confusion a
Heller-helicopter politely 'dusted'
the field, and Marion Cole, of the
Cole Brothers Flying- Circus buck-
ed his red and white' Steirman
through a series of stunt jumps,
loops and slow ground rolls that
resembled a rodeo.
Waving his tail politely at the
crowd he gave way to his broth-
er who sent streams of fire out
of the engine of his biplane as
he contributed his own brand
of outside loops to the festivi-
ties.
After witnessing three of these
the announcer demanded that Cole
be forced to stop the routine and
go into something less dangerous.
Cole has set his plane completely
m fire twice this past year with
this dangerous maneuver.
The Aero Club of Michigan is
sponsoring this air-havoc which
will continue today and tomorrow
at the airport, with the final heat
of the Continental Trophy Race
for midget airplanes the featured
event for tomorrow.
-Daiy-rank seny
RIBBON-CUTTING-Daredevil 'Bevo' Howard slices in twelve feet above the ground to cut a ribbon
held by two National Guard members to thrill an audience of 12,000 at the third International Air
Fair sponsored by the Aero Club of Michigan.
Offer Soviets
Season Pass
To'U' Games
WASHINGTON-U)-The Voice
of America yesterday offered to
buy a season pass for any accredit-
ed Russian correspondent who
wants to see Michigan's football
team in action.
It broadcast this offer in 25
languages on all its programs
beamed throughout the world.
THE BROADCAST was an ans-
wer to a radio Moscow propaganda
blast against American football
which said: "Football players at
Michigan are often carried from
the football field to the hospital
or even straight to the cemetery."
In reply the State Depart-
ment's "Voice" accused the Rus-
sians of shedding "crocodile
tears" about American athletes
who were pictured by Moscow
as driven to slaughter by greedy
promoters. Moscow cried that it
all is inspired by.Wall Street to,
get the American public condi-
tioned for a war.
Said the U.S. announcer:
"The Voice will gladly offer a
season's pass to all Michigan
games to an accredited USSR cor-
respondent to see for himself. We
-an assure him that he'll have no
expenses for flowers or wreaths."
Voice directors expect no takers
to check on the official Moscow
propaganda line.
Casualty List
PolicyGiven
WASHINGTON-UP)-The Army
explained last night why it secretly
gave Congress Korean war casual-
ty figures which were larger than
those made public at the same
time.
It said the information given to
"one of the Appropriations Com-
mittees" was a "flash" report
which included unconfirmed as
well as confirmed casualties. It
said such flash reports are not giv-
en to the public generally because
the Army wants (1) to avoid caus-
ing unnecessary anxiety among
soldiers' relatives and (2) to pre-
vent the enemy from obtaining in-
formation of value.
The Army declared it would con-
CASE CLARIFIED:
YP Probation Blamed
On 'Irresponsibility'
The reason for the University
disciplinary action in placing the1
Young Progressives on probation
for the fall semester was made
public yesterday.
According to Dean of Students
Erich A. Walter, it was "continued
general irresponsibility" as evi-
denced in three infractions of Uni-
versity rules:
1-Submission of a "markedly
inaccurate" membership 1 i s t,
which named more than 20-non-
students as members of the cam-
pus organization and neglected to
name some students who are mem-
bers.
2-Retention of Gordon Mac-
Dougall as chairman of the group
without receiving permission from
the Office of Student Affairs. Mac-
Dougall is not a registered student
this summer.
3-Announcement of an "open
forum" on the Korean situation
after only obtaining permission
for a membership meeting.
* * *
THESE WERE among the mat-
ters discussed at Tuesday's two-
hour hearing, when MacDougall
Baudouin Ascends
Belgian Throne
BRUSSELS-(/P)-Crown Prince
Baudouin, a bespectacled youth of
19 who virtually is a stranger in
his own country, became ruler of
the Belgians yesterday. .
His father, King Leopold IIL,
dropped to the role of King in
name only.
and other officers of the Young
Progressives appeared before the
Student Affairs Committee.
After the hearing, the Stu-1
dent Affairs Committee voted to
recommend probation, which
means that the YP will be per-
mitted to function under warn-
ing.
The Young Progressives have
charged that the action "violates
University procedures," and said
that they will "appeal this case
to the student body" in the fall.
COMMENTING on the disci-
plinary action, summer Student
Legislature President Keith,-Beers
said he "cannot see how any group
could object to being warned that
continued irresponsibility would
be grounds for punishment,..
"There are two general patterns
of action which the YP might
now follow: they might fight this
action . . with their past me-
thods of belligerence and lack of
cooperation; or they might try to
gain the good faith of students,
faculty, and administration by a
new program of action within the
established channels," Beers said.
Another member of the Stu-
dent Legislature, Tom Walsh,
'51L, said he is "confident that
the Student Legislature this fall
will want to review and clarify
the entire situation."
The Young Republicans, accord-
ing to acting president Jasper B.
Reid, Jr., "have the greatest con-
fidence in the University admin-
istration.
Comnunists
Start Drive
For Taegu
Marines Nearing
Chinju in South
TOKYO, Saturday-(P)-Amer-
can and South Korean troops
auncheda counterattack on the
ewly-fallen east coast port of
Pohang today as the Communists
tabbed across the Naktong river
oward Taegu on the western side
Af the United Nations Korean
)eachhead.
The counterblow at Pohang,
econd most important U.N. port
in Korea, was announced in an
Eighth Army communique issued
t noon. It said the town, which
fell Friday night, was held by
3,000 North Koreans.
DURING THE NIGHT a column
of American tanks moved in to
help the embattled American de-
fenders to cling to Pohang's air-
field and port facilities, outside
the town proper. Destroyers came
nto the harbor and swung their
g u n s shoreward. Battle-tested
South Korean troops rushed to the
area in preparation for the coun-
terattack.
Across the beachhead 50 miles
westward, the North Koreans
threw two punches at the Ameri-
can and South Korean defenders
of the Naktong line protecting
the communications center of
Taegu. It might be the start of
the long-awaited all-out push
on the city but it was too early
to say for sure.
The Communists sent about 300
men across the River into the
First Cavalry Division front and
he Americaps met them with
fixed bayonets in fierce hand-to-
hand battle. To the north the
Communists pushed against the
South Korean First Division with
10 tanks which they got across
the Natong Friday night. The
Communists were reported halted
but five tanks still were roaming
east of the Naktong.
* * *
ON KOREA'S south coast, U.S.
Marines chopped off a four-mie
advance from captured Kosog
toward Chinju, thehCommunist
southern anchor. The Marines
were moving to throw another arm
around Communist forces trapped
east of the Red base.
General MacArthur's headquar-
ters today reported that the North
Korean Communists plan to move
their capital from Pyongyang to
captured Seoul on Aug. 15.
Seoul,traditional capital of Ko-
rea, was headquarters for the U.S.
occupation of South Korea after
World War II. Pyongyang was
headquarters for the Russian oc-
cupation of North Korea.
,, a
AAF, Army
Call 59,444
Reservists
WASHINGTON--(P)-The Air
Force and the Army announced
,yesterday they are calling up 59,-
444 reserves.
The Air Force said it expects
to put 8,000 officers and 42,000
enlisted men into active service
by early fall. It spoke of this num-
ber as the "initial requirement."
* * *
MOST OF THESE officers will
be of the rank of captain or be-
low. The enlisted reservists are
persons with military skills which
are needed.
Previously the Air Force had
said it was summoning reser-
vists, on a voluntary and in-
voluntary basis, but the figures
had not been given.
The Army is ordering 9,444 male
reserve officers from all over the
country into active service.
* * *
THERE ARE TWO general
groups.
1. A total of 1,582 from the
active and inactive medical,
dental veterinary and medical
Fleeing Koreans Meet Tired ,Troops
SUPPORT LIMITATION:
Veteran Groups Oppose
Extending Bonus Pglan
"Nearly all the veteran groups to the families that might find
present at a meeting with Gov. themselves in dire financial sta-
Williams in Lansing yesterday op- tus should a family member be-
posed extension of the state World come a casualty in Korea.
War II bonus to families of menI
killed in the Korean campaign, ac- Some of the veteran groups
cording to Warren Smith of the at the meeting wanted to act
economics department, who rep- with the police in combatting
resented the American Veterans subversives, Smith explained.
Committee. They felt that they could pro-
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