IN THIS CORNER See Page 2 Y Latest Deadline in the State iaii4 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- i --l A - 4 IL- - - - I : - - A. I- - -- L - - A - 4- 1