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CLOUDY, SHOWERS
EIGHT PAGE
® VL. LX. No. 21-9
ANN ARBOR, MICHIGAN, WEDNESDAY, JULY 26, 1950
I
.i.rr
New
Tax Increase
Of $5 Billion
Is Requested
Rates Would Hit
WartimeHigh
k° ASHINGTON-(AP)-President
Truman called on Congres yes-
terday for a quick $5,000,000,000 a
year increase in taxes as a first
installment on war in Korea and1
worldwide bulwarks against Com-
munist aggression.
Starting Oct. 1, income tax rates
for some 52,000,000 indiyiduals
would be jacked up close to World
War II levels.
CORPORATION LEVIES would
rise to 25 per cent on the first
$25,000 of income and 45 per cent
on all over that, the new rates
applying to 1950 profits.
And at the same time the
President made clear his belief
that the cut into paychecks and
profits must go even deeper next
year.
He said he will send new recom-
mendations for a "more compre-
hensive" program when ,he has
more information on needs.
He pointed out that swelling
;. military costs come at a time when
.~ the budget already is out of ba-
lance, declaring:
"THIS MAKES IT imperative
that we increase tax revenues
promptly lest a growing deficit
create new inflationary forces det-
rimental to our defense effort."
Truman gave on breakdown on
who would pay what part of the
$5,000,000,000 but Treasury offi-
cials said $3,000,000,000 of it would
come from individuals. $1,500,-
900,000 from corporations, and the
other $500,000,000 from loophole
plugging, a tax on insurance cor-
porations and other changes pro-
vided in a pending tax bill.
'Worker' Ban
Put inEffect
DETROIT-P)-The D e t r o i t
City Council yesterday ordered off
the streets a news-stand selling
the Communist Daily Worker.
The order specifically named
the stand operated by Izzy Beren-
son, 57, at Michigan Ave. and
Griswold Street within sight of
City Hall. Council declared the
stand a nuisance to peace and
safety.
Berenson had defied an ordi-
nance adopted by Council last
week banning the sale of "subver-
sive- literature."
Council then adopted a new or-
dinance banning Berenson's stand
as a nuisance and making no men-
tion of "subversive literature."
Councilmen expressed the belief
this would avoid a long court test
on the legality of their action.
Police delayed tearing down Ber-
enson's stand until Mayor Albert
E. Cobo signs the new ordinance.
The mayor said he approved the
ordinance and would sign it, pro-
bably today.
North
Korean
Drive
Nears
Pusar
'i
COME AND GET IT:
Big Bargain Days
Start
Today
at
9
Today and tomorrow are the big days.
Ann Arbor is all dressed up in bunting and flags both downtown
and in campustown for the year's biggest sale of everything from
socks to silks in the local Bargain Days.
* * * *
HOURS WILL BE from 9 a.m. to 5:30 p.m. in some 125 stores
from Main to State Street, when bargain shoppers will be able to
buy for the entire family at rock-bottom prices.
Strikes May
Idle Nearly
By The Associated Press
Wildcat walkouts and strikes in
key industrial departments threat-
ened yesterday to idle nearly 200,-
000 workers.
In Washington, meanwhile, the
AFL and CIO made a formal dec-
laration that theywill work to-
gether in the fields of legislation,
political action and international
relations. They formed a perma-
nent "AFL-CIO Unity Committee"
composed of leaders of the two
organizations.
A SIX-DAY STRIKE of 1,100
AFL supply truck drivers has re-
sulted in the layoff of nearly half
of the New York City area's 175,-
000 AFL construction workers.
Both labor and management lead-
ers feared all would be idle by to-
night unless the strike is called
off.
The strike has forced the shut-
down of one building project
after another.,
The Studebaker Corp. said an
"unauthorized walkout" of Foun-
dry workers required a complete
shutdown of its plants in South
Bend, Ind., making 17,000 produc-
tion workers idle.
WILDCAT STRIKES of workers
at the International Harvester
Company's Farmall tra.tor plant
in Rock Island, Ill., threatened to
close the plant. The Company said
unless the strikers return the en-
tire -plant will shut down today,
making 4,300 idle.
Plan Michiga"
LoyaltyCheek
LANSING-()-A special Sen-
ate committee yesterday recom-
mended the formation of a sub-
versive squad in state police as
the "first step" in a loyalty check
program that would "apply to/
any group in the state."
The recommendation comes in
the form of a billywhich the com-
mittee, headed by Senator Colin
L. Smith (R-Big Rapids) will ask
Governor Williams to put on the
call for the Aug. 15 special legis-
lative session.
"This is no longer a loyalty mat-
ter, but a security matter," Smith
declared, referring to the Korean
War. He estimated that the eight-
man squad would cost the state
approximately $50,000 a year.
Some stores have cut special
.stock in half for the big day.
Merchants have been working
for the past week in preparing
displays and counters for the sale.
* * *
THE CHAMBER of Commerce
will give out 2,000 helium-filled
balloons to Ann Arbor kids to
lend a festive air to the city.
One thousand will be given out
each morning.
Shoppers come into town
from all over Michigan, some
from as far away as Jackson,
Battle Creek and Grand Rapids.
Lewis G. Christman, executive
secretary of the Chamber of Com-
merce, said that this morning is
the best time to shop in order to
have a good pick of the bargains.
Commrnists
Gain Strength
In E. Germany
BERLIN-(AP)-Hard core Com-
munists with years of loyalty to
the Kremlin elbowed their way to
firmer power in East Germany
yesterday. Spade-bearded Walter
Ulbricht became the Zonal boss
in a shakeup of the Socialist Unity
(Communist) Party's high com-
mand.
* * *
HOWEVER, the veteran Gerhart
Eisler, bail-jumping fugitive from
the United States, failed to win a
place on this command, the reor-
ganized central committee of the
party. He still is information min-
ister in the East German govern-
ment. He had been a member of
the' old National Committee which
the Central Committee replaced.
There was 'no explanation.
Germans who were Communists
before the war drew the influen-
tial positions on the new Commit-
tee. They threw a bone without
much meat on it to former So-
cialists who joined them to or-
ganize the Socialist Unity (SED)
party in 1946. Only 11 seats went
to the Socialists, a 50 per cent
drop in representation.
Wins Run-off
In Oklahoma
Long, Conceded
Louisiana Victor
By The Associated Press
Rep. Mike Monroney was elect-j
ed in a nip and tuck battle with
Senator Elmer Thomas last nightJ
as Oklahoma tallied votes in a
run-off primary for the Demo-
cratic senatorial nomination.
Chief interest in the day's bal-
loting centered on the Oklahoma
race, but three other primaries-
in Louisiana, Arkansas, and South'
Carolina - also attracted atten-
tion.
In Washington, Senator Thomas
conceded early today that he had
lost to Monroney in his bid for
renomination.
Returns from 3,482 of 3,788 pre-,
cincts gave Monroney 215,761;
Thomas 193,743.
P sep. Victor Wickersham took an
early lead over Dr. Lloyd E. Church
in the seventh district. John Jar-
man held a narrow margin over
William A. Berry for Monroney's
old seat.
Louisiana . . .
Malcolm LaFargue of Shreve-
port last night conceded the vic-
tory of Sen. Russell Long, son of
the late Huey P. Long, in the'
Democratic senatorial primary.
Long led LaFargue, the candi-
date of an anti-Long coalition, by
219,437 votes to 100,742 in unoffi-
cial returns from 1,285 precincts
out of 2,092. A third candidate,
Newt V. Mills, had 4,470 votes. f
Arkansas . .
Gov. Sidney McMath took a sub-
stantial lead, on the basis of early
returns, for the Democratic nom-
ination to succeed himself.
McMath led former Gov. Ben
Laney, a leader of Southern States
Rights forces opposing President
Truman, by not quite two to one
in 1,412 of the state's 2,237 pre-
cincts. McMath had 92,085 votes
to Laney's 51,245. Two other can-
didates trailed far behind.
Senator William Fulbright was
not opposed for renomination.
South Carolina . .
Two former U.S. Representa-
tives-W. J. Bryan Dorn of Green-
wood, 34-year-old veteran, and
John J. Riley, Sumner business-
man, received Democratic nomina-
tion to the House.
Dorn defeated Rep. James B.
Hare, and Riley won over Rep.
Hugo S. Sims, Jr., who at 29 is
the youngest member of the 81st
Congress.
Emergency
Bills Clear
Hoi~se Vote
i
GBS 'Society
NEW YORK-(A)-The Shaw
Society 'of America will be or-
ganized here t 3night on the
Irish playright's 94th birthday
-and with his blessings.
The society grew out of the
admiration of a Flint, Mich.,
librarian and book reviewer,
who enlisted some of the
world's greatest scholars and
intellectuals on a founders
committee.
For more information on
GBS, see page 6.
Push Withir
70 Miles of
SupplyPort
Yongdong Take:
As Yanks Retrea
TOKYO - (P) - Communi
troops have loosed a lightnil
drive along Korea's south- coa
which has swept to within 70 mil
of the main supply port of P
san, late reports said yesterday
The North Koreans cut loc
with this punch while exertii
heavy pressure all along the frol
overwhelming strategic Yongdo
and driving the American defen
ers two miles to the east.
THE LATE REPORTS to Tok
said one spearhead of the Cor
munists' Fourth Division' h
reached the edge of Hadong, ne
the south coast and only 70 mi
west of Pusan on the southea
coast.
Associated Press corresponi
dent Don Whitehead said th1
surprise Communist blow caugh
the U.S. First Cavalry Divisio
off balance while it was with
drawing and caused revision o
the American defensive play
The Communists hit on t:
right flank Monday and on t
left flank early yesterday. T
I
-Metro-Goldwyn-Mayer
W. C. FIELDS STRIKES TYPICAL POSE
Weekend Movie Offers
W.C. Fields, 'Hantgover'
An unusual double-feature will be shown at Hill Auditorium
this weekend with W. C. Fields and Laird Cregar in the starring roles.
"You Can't Cheat an Honest Man" will give Fields' fans a chance
to guffaw at the antics of one of America's well-known, best-loved
comics, while Cregar gives chills and thrills in the mystery "Hang-
over Square." The show will open at 8 p.m. Friday and Saturday
nights.
* * * *
CREGAR'S EERIE MELODRAMA will be shown first with Fields
providing post-mortem relaxation.
Foggy, gas-lighted scenes will illuminate the spine-prickling
descent into the murder-ridden jungles of London which is dis-
BLASTS MONOPOLY:
Cruilishank Urges Adoption
Of National Health Insurance
Rounndup
By The Associated Press
WASHINGTON - A House-
S e n a t e Committee yesterday
agreed, tentatively to put 10,000,-
000 more workers under old age
insurance, boost benefits up to 100
per cent, and more than double
security payroll taxes over the
next 20 years. Leaders hope to get
the compromise bill through the
Senate and House promptly so
that it can become law by August
1. This would mean that 3,000,000
persons now receiving federal old
age and survivors benefits would
get larger checks on Oct. 1.
* * *
LONDON - Britain was re-
ported last night ready to offer
a small ground force to help
American GIs in Korea. She
has already thrown some naval
and air forces into the fight.
* 4' *'
ANKARA, Turkey - Turkey
offered the United Nations 4,500
fully armed troops to fight the
Communists in Korea.
* * *
BRUSSELS, Belgium - King
Leopold's opponents said it with
dynamite yesterday. Reports came
in from many parts of southern
Belgium of sabotage along the
roads and railways. Strikes were
getting under way in the industrial
region of the Borinage, where op-
position to Leopold has been hot-
test all along.
played in "Hangover Square."
The action takes place in the
apartment and river-rat areas
of the murky city with a killer
to cope with. The killer adds
tension to the already nerve-
tickling scenery.
Fields, with Edgar Bergen and
Charlie McCarthy will relieve the
tension with brighter Hollywood
Klieg lights and lots of old-time
vaudeville merriment, in a show
which Ann Arbor audiences have
not had a chance to see in town.
* * *
FIELDS, THOUGH, has already
proved himself with University
students. When a double-bill of
his films ran last year, Hill Audi-
torium was filled with cheering,
capacity crowds.
Tickets for the double feature
are 50 cents and may be purchas-
ed from 1 to 4 p.m. tomorrow,;
Thursday and Friday in the Ad-
ministration Bldg., and from 1
to 6 p.m. in the Union and the
Hill Auditorium box office; or at
the box office before perform-
ances.
The double-bill is co-sponsored
by the Art Cinema League and
The Daily.
Holcombe to Talk
Today on Phoenix
Prof. Arthur N. Holcombe, of the
government department at Har-
vard University, will speak on
"Modern Arms and Free Men" in
a Phoenix Project lecture at 8:15
p.m. today in the Rackham Am-
phitheater.
WASHINGTON-(7)-Emergen-
cy bills lifting all restrictions on
the size of the armed forces andz
adding one year to all current
military enlistments rocketedt
through the House yesterday. ;
Unanimous voice votes clearedt
both bills, which had been re-
quested only last week by Presi-
dent Truman.
THE ENLISTMENT extension
measure already has been approv-
ed by the Senate and goes direct-
ly to the White House for signa-
ture. Senate action is required
on the other bill.
Elsewhere there were these
other military developments:
1. The Air Force announced it
is calling immediately for active
duty "a very limited number of
air reserve units."
2. The Marine Corps disclosed
that part of the Second Marine
Division is being moved from
Camp Lejeune, N.C., to Camp
Pendleton, Calif. It was from
Camp Pendelton that the First
Marine Diivsion recently sailed
for the Korean war theater. ,
* * *
REPUBLICANS, spearheaded by
Rep. Short of Missouri, ranking
Republican on the Armed Serv-
ices Committee, demanded to
know who and what was respon-
sible for U.S. military reverses in
Korea.
Chairman Vinson (Dem., Ga.)
of the Armed Services Commit-
tee undertook to answer that
question.
"The main trouble," Vinson said,
"is that we are 5,000 miles dis-
tant from our base of supplies.
They're doing everything human-
ly possible to get equipment and
men into Korea."
But, for a start, House leaders
pledged prompt action on Presi-
dent Truman s request for an ad-
ditional $10,486,976,000 on mili-
tary funds. The White House cal-
culates that sum would permit
putting another 600,000 Ameri-
cans in uniform, raising the total
strength of the armed forces to
more than 2,000,000. The pre-
sent legal limit is 2,005,882.
Appraising the military poten-
tials of the United States and the
Soviet Union, Vinson set out this,
balance sheet:
In Russia's favor: He estimates
she outnumbers the U.S. more
than 17 to 1 in military man-
power and 7 to 1 in tanks; possess
a "vast'air force and almost 300
submarines.
In U.S. favor: Governmentally,
far stronger. "In any long term
effort . . . our system can outlast
and surpass the dictated, regi-
mented system of the Commun-
ists." Industrial potential: "The
envy of the world." Seapower:
Vastly greater than that of Rus-
sia and her satellites. Strategic
air power: Unmatched. Atomic
arms: U.S. far ahead and likely
to stay there for a good many
years.
No Censoring?
TOKYO -- (AR)-- The Eighth
Army Public Information Offic
in Korea issued a memorandun
to correspondents yesterday tha'
they no longer need to submi
their copy for a security checl
but that "criticism of commans
decisions or of, the conduct of
allied soldiers on the battle-
field will not be tolerated."
one-two shoved the American
back farther than they had plan
ned.
* * *
T4IE AMERICAN pull-back we
in good order. The First Cavalr
fought a rearguard action to ne
positions east of Yongdong. The;
positions were not pinpointed.
A naval statement said war
ships still were inflicting heav
casualties on red troops along
the east coast. An American des-
troyer yesterday blasted the
vicinity of the rubbled city o
Yongdong, north of the Ameri
can beachhead.
The carrier planes im their fir
raid in South Korea hammere
the Kwangju area, 75 air mil
southwest of fallen Yongdon
Warship attacks on the east coa
Sunday killed from 600 to 7(
enemy troops,- however, the na'
statement said.
THE MAIN LINE of America
retreat runs northeast out
Yongdong and then southeastwai
to the big port of Pusan. Pusa
is 100 air miles southeast of Yon
dong.
General MacArthur's head
quarters made it clear tha
more withdrawals may be neces
sary before a tank-tight peri
meter can be formed to salvag
a beach-head for future opera
tions.
MacArthur's operational repc
early yesterday listed eight Nor
Korean divisions - probably 5C
000 men o'r more - in the all-o
effort ' to push American troo
off the Korean peninsula.
'Physicals for
DraftBegin
Pre-induction physicals for t
Lower Peninsula began yesterd
in Detroit and will continue un
Aug. 22.
Washtenaw county's draft boa
will send 102 men to Detroit f
examinations;. on Aug. 2. Out
that group will be chosen the
men who will comprise the cou
ty's quota in the September i
duction call.
The men who will take t
STUDY CONTINUES.
'U' Levant Specialists To
Work for Peace in East
Private voluntary health insur-
ance plans provide inadequate
protection against the unpredict-
able costs of medical care, accord-
ing to Nelson H. Cruikshank of
the AFL.
In the same breath, he declar-
ed that the defense of the private
plans by the American Medical
Association is part of a two-faced
campaign to protect their mono-
polistic control of medical prac-
tice.
* * *
SPEAKING ON "Health Insur-
ance - Public or Private" before
an audience of the summer lecture
series on "The Quest for Social
Security," Cruikshank blasted the
private plans as being inadequate
in their coverage, offering too lit-
tle protection and costing too
much, and urged adoption of Na-
tional Health Insurance.
The lecture series will con-
tinue today with a defense of
private health insurance by Dr.
Paul R. Hawley, director of the
American College of Surgeons.
Dr. Hawley, who formerly was
chief executive officer of the Blue
Cross and Blue Shield Commis-
sions will speak at 4:15 in Rack-,
than they are to protect sub-
scribers from sickness costs, he
said.
Costs of private health insur-
ance cannot be afforded by low'
income groups because they are
not scaled according to ability to
pay. And even with insurance
only about 35 per cent °of the av-
erage family's doctor bills are paid
by the various plans, the director
of the AFL's social insurance ac-
tivities declared.
He added that a program of Na-
tional Health Insurance, which
would be an extension of Social
Security to include medical bills,
would cover about 85 per cent of
the population and operate on a
base broad enough to afford every-
one an opportunity for protec-
tion.
A group of specialists at
University may help America
the peace in the Middle East.
the
win
The instigators of the Univer-
sity's Institute of the Middle East
are convinced that the nation's
program in the Levant is handi-
capped by lack of detailed, practi-
cal knowledge.
** *
THEY ARE Douglas D. Crary,
renowned Far East geographer,
fl-i- n R m-nnC ra.m,, of
or Egyptians about farming and
irrigation. That's nonsense. We
may be able to contribute some-
things in the way of methods,
but we can't teach them any-
thing about farming and irriga-
tion itself.
That, according to Crary, is the
crux of the problem of integrating
the Middle East and the West.
He declared that the men who go
into that area to work for the
government or in private indus-
MURROW, CERF, BROWN, L AGHTON:
Oratorical Association Names 1950-51 Speakers'
Edward R. Murrow, noted iradio
news analyst, will deliver the first
of the University Oratorical As-
soniation's 1950-51 lecture series.
Monday, Oct. 16 on "This Is the
News."
Laughton's program, slated
f- AT- -ho..,7 is -+; n 13
About the Hydrogen Bomb."
Laurence was recently awarded
the Lasker Prize for the best writ-
inc~ nn rn n- . lai 10n4
associate editor of the Saturday
Review of Literature.
Final number of the series will
L. .. ... T. ..- .1., M ......-T 1