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LXI, No. 2-S ANN ARBOR, MICHIGAN, THURSDAY, JUNE 28, 1951 FOUR PAGES Senators Rebuke Control Program Administration Roll Back Powers Over Live Beef Prices Limited r WASHINGTON-(P)-The Sen- ate dealt a body blow to President Truman's price control program last night and powerful Senators threatened to filibuster if the Ad- ministration attempts to prolong the existing economic controls beyond their expiration date, Sat- urday night. In a night session, the Senate refused, 61 to 26, to strike from Law School Tax Institute Talks To End The Law School's summer in- stitute on the "Taxation of Bus- iness Enterprise" entered its final two sessions today after a full day of activities yesterday cli- maxed by an evening banquet dis- cussion of tax policies to meet the current fiscal emergency. Scheduled for today were a for- um on the role of taxation in the organization of business enter- prises at 9 a.m. and a discussion of the effect of taxation on com- pensation plans at 2 p.m. Both meetings were to be held in Rm. 100, Hutchins Hall. * * * AT LAST NIGHT'S banquet ses- sion, two tax experts tangled over the methods to be used in meet- ing the problem of rising infia. tion, a question which both agreed was the greatest current danger facing the U.S. Harley L. Lutz, professor emeritus of Prfinceton Univer- sity and a tax consultant to the National Association of Man- ufacturers (NAM), tore into "sawdust Caesars" who are is- suing "ineffective, unintelligible unenforceable control regula- tions," while advocating the NAM's program of broad con- sumption taxes to finance a pay-as-you-go mobilization pro- Randolph E. Paul, New York lawyer and former tax consultant to the Roosevelt administration, called for a national economic controls program which would in- clude credit measures, allocation of materials, wage and price con- trols and even rationing, if nec- essary, along with a new federal consumer tax plan, as a means of "safeguarding our cold war victories abroad." BOTH SPEAKERS agreed that present major sources of federal revenue (corporate profits tax, individual income tax, present fed- eral excise taxes) have about e ' reached the point of maximum ex- ploitation. Lutz wanted to secure the funds necessary to balance the budget through a federal consumption tax which would replace the pres- ent "discriminatory" system of federal excises, He outlined the NAM-support- ed consumption tax which would fall on manufactured goods, thus excluding foods, rents and other sources. This tax would get at the major source of presently- untaxed income - the lower bracket groups-and would act to "halt inflation rather than control it" as the Administra- tion is trying to do, he said. Paul argued that taxation has become less a matter of securing revenue than of combating infla- tion. He favored a federal retail consumer tax as a means of clos- ing the gap between disposable income, or the amount of money people and business have to spend, its pending controls measure a provision sharply limiting the Ad- Sministration's power to roll back the price of live beef and other commodities. Thus the chamber ratified a provision declaring that the prices must not be reduced below the level prevailing in the period Jan. 25 to Feb. 24, 1951. THE SENATE took its action in working on a controls bill of its own to replace the one expiring Saturday. But on the House side, leader made a bipartisan agreement to extend the existing Defense Pro- duction Act, under which price- wage and other controls are applied, through July as a stop- gap. House leaders said they couldn't get a more permanent bill through by Saturday. But a stop-gap would require Senate approval. And Chairman Maybank (D-S.C.) of the Senate Banking Committee served notice on the Senate floor that "several of us intend to talk and talk and talk" if any move develops to push through a stop- gap. * * * SENATOR Douglas (D-Ill.) said those who oppose a simple reso- lution extending the present law 30 days were trying to prevent a manufactu'er's rollback which is scheduled to go into effect July 2. What the House leaders would say to that was not yet evident. The whole future of the con- trols program thus was up in the air. But the Senate intends to resume work on its own bill tomorrow and perhaps pass it in the afternoon. In the last action of last night's session, the Senate voted 47 to 33 to approve a proposal by Senator Butler (R-Neb.) to prevent any future quotas on livestock slaugh- tering. Senator Douglas led the fight to remove the anti-rollback provision from the Senate bill. It was con- sidered a key test of the willing- ness of the Senate to go along with Truman on a program of sterner controls. Republicans joined Democrats in the House in supporting a reso- lution by Chairman Spence (D- Ky.) of the House Banking Com- mittee to extend the present con- trols for 31 days. It is expected to meet with little opposition when it comes up in the house tomor- row. Senator McFarland of Arizona, the Democratic floor leader, said he hoped for a final vote on the Senate's version of a new controls bill not later than this afternoon. Author of the limitation on roll- backs was Senator Maybank (D- S.C.). An attempt by Senator Moody (D-Mich.) to suspend for 60 days or until Sept. 1 the effect of the anti-rollback limitations was de- feated. Staid Sabbath For 985_Seen BETHLEHEM, N.H. -(P)- The 985 residents of this White Moun- tain resort town had better be- have on Sunday or they'll land in the stocks for breaking an old blue law. The town fathers are invoking the antiquated law for two hours Sunday afternoon-1 p.m. to 3 p.m.-to remind folk "how much British Set To Evacuate Oil Fields Iranian Cabinet HoldsMeeting TEHRAN, Iran-(P)-The Brit- ish-owned Anglo-Iranian Oil Com- pany shut off the pumps in the Aghajari oil field and started call- ing the 700 British technicians on its field staff to the refinery port of Abadan yesterday for the zero hour of "operation exodus." That hour may strike today. PREMIER MOHAMMED called a cabinet meeting last night. His government is checking the possi- bility of getting other foreign help in the event the British decline to continue as employes of the Iranian National Oil Company, a government agency Mossadegh has designated as successor to the AIOC. A dispatch from Rome said a high official of Italy's state oil monopoly, Count Ettore Car- affa D'Andria, is visiting Iran with the approval of the Italian government. Informed sources were quoted. The informants said wiossa- degh's government wanted to know about the legal and financial organization of the Italian com- pany, known as "Agip," and its re- lations with foreign oil companies. * * * SOME OFFICIALS of the bil- lion-dollar AIOC expect word from London in the next 24 hours-un- less there is an unforeseen break in the oil nationalization dispute- to abandon its holdings in this sun-baked hotspot and go ahead with the evacuation of the British staff. Authorities here say the op- eration, planned days ago, could take out all the remaining 2,00 British employees of the AOC within 72 hours. All have packed up. The last plane loads of wives and children of the tech- nicians left Iran this morning. In London, Prime Minister At- tlee, Conservative leader Winston Churchill and their principal aides discussed the crisis at a secret meeting. Churchill proposed in the House of Commons that such a session be held on the grounds there are "some points which, at this juncture, are better dealt with in private." Secretary of State Acheson ap- pealed urgently to Iran to recon- sider her stand. He urged con- tinued production and shipment of oil. Call Luciano 'King Pin 'in Dope Trade WASHINGTON-()-A Federal agent yesterday called Charles "Lucky" Luciano "the king pin" in a dope trade which investigat- ing Senators said is ruled by the threat of death. The deported vice czar, des- cribed as running his sinister kingdom from Italy through gun- man agents, took top billing in a televised hearing before the Senate CrimeeCommittee. Testimony about Luciano came from Charles Siragusa, Federal Narcotics agent. x i yI I I N I a Iece Talks rogressrng Russia Clarifies Peace Proposals WASHINGTON-()-Russia is reported to have told the United States yesterday that moves toward a truce in Korea should take the form of military negotiations between the North Korean and United Nations field commanders. Russia's reported suggestion thus would leave the Chinese Com- munists out of any impending cease-fire talks, apparently except aa advisers to the North Koreans. RED CHINA has contended all along that Chinese Communist4 troops fighting in Korea are simply "volunteers" although they are * * * Allies Stall Unexpected Red Thrust TOKYO-(P)-The Communists made strong probing attacks yes- terday on the central Korea front. They were hurled back but Al- lied patrols stabbing at suspected Red buildup areas were showered with mortar and automatic weap- on fire. * * * FIGHTING was bitter. It came as the Russians reportedly sug- MAIDEN VOYAGE-A-The S.S. Constitution, newest passenger liner in the United States merchant fleet, plows its way up New York Bay on delivery voyage from Boston. ; MAC WRANGLERS UNITE: I World News /".4 WU"T T 'N'1 if gested that any truce in the fight- enators W arn Reds ing be negotiated by the com- manders of the North Korean and A g ' United Nations forces. iy The Associated Press fsocstd Posssionsan LONDON - The Western Big Associted sre k sorrespon >Thre-hae-areedthatGer dent Nate Polowetzky said the WASHINGTON-(IP - Senators Three have agreed that Ger- Russian move caused mild sur- who quarreled over the firing of record a message from Lieut. Gen. man suggestions for raising an prise at Eighth Army headquar- Gen. Douglas MacArthur teamed Leslie R. Groves, wartime director army, navy and air force are ters. The offer, he noted, s up yesterday to warn Russia that o dh tom bomb proec saying unworkabl because the call f startingly similar to the pro- "ultimatedetuto"a isan he advised President Roosevelt be- too much too soon, informed dip-poabyGnrlDuasMc destruction awaits any fore the 1945 Yalta Conference lomats reported yesterday.posal by General Douglas Mac- aggressor who starts war on the th th b 9 Arthur that he meet with Red mistaken idea that Americans are ( that the bomb was 99 percent cer- American, British and French field commanders to discuss badly split, tain to work. officials, they said, decided the steps for ending the Korean "The issues which might divide Germans asked for more armor, war. our people are far transcended by Eio. L '- U aiircraft and ships than the Atlan- the things which unite them," said IlL tic Allies could supply under their Neither General Matthew B. a statement approved by members present rearmament program. Ridgway, UN Supreme Comman- of the Senate Armed Services and Prizes Offered 4 * lder, nor Lt. Gen. James A. Van Foreign Relations Committees. NEW YORK -Newsweek says Fleet, Eighth Army Commander, Fog R Cm te. * SGo Th s . yfN would comment on the reported THOSE GROUPS, which made Go1Iv. If Yov. TndSen. Dewey ofNew Russian proposal. A spokesman 1nd~~~~Yr and Sen James H. Duff ofproslAsokma the long study of Far East policy Pennsylvania have assured each for Ridgway said the Supreme set off by dismissal of the Pacific Eight awards, one of $75 and other they will back Gen. Dwight Commander would have to con- commander, directly addressed one of $50 in each of the four D. Eisenhower for the Republi- sult with the joint chiefs of staff their statement to "the Commun- fields of writing-drama, essay, can Presidential nomination in in Washington. ist world." fiction, and poetry will be awarded 1952. * * * The statement, proposed by to winning efforts in the summer * * FIFTH AIR FORCE pilots re- Chairman Russell (D-Ga.) of Hopwood Contest. LANSING - Secretary of State ported sighting heavy southbound the Armed Services Committee All regularly enrolled students Fred M. Alger, Jr., yesterday an- vehicular traffic on the main who presided over the hearings, of the summer session who have nounced he would campaign for roads south of Wonsan and was adopted by a voice vote in been doing work of passing grade the Republican nomination for Yangdok on the east coast. a closed session. in all their courses up to the time Governor next year. AP correspondent Jim Becker Not all of the 26 members of the manuscripts must be handed in * said frontline officers expect a two committees were present but and who are enrolled in one NEW YORK-David Warfield, Red attack in the western sec- no suggestion has been raised that course in English composition in 84-year-old actor, died last night for by the second week in July. there is any dissent. the Department of English or in in his Manhattan apartment. The group adopted a motion the Department of Journalism are He retired in 1924 after a career Allied patrols met stubborn emphasizing that the statement eligible to compete. Students who that made him one of Broadway's enemy resistance as they moved does not amount to a report on have already competed three times greatest stars early in the cen- toward Kumsong, suspected hub the investigation. There will be in summer contests or who have tury. of another Red buildup on the another meeting to decide what to already won a major award in a * * * central front. Hundreds of dug- do about a report, which seems Hopwood contest are not eligible. SAN DIEGO, CALIF. - More ! in Reds beat back UN attempts certain to be a split one if there The judges will be selected from than 1,400 fighting men, marines to move into the area. are any formal findings at all. the staff of the University. and navy personnel, all veterans On Wednesday, Allied forces The statement was adopted at Further information may be ob- of major Korean battles, arrived were held to probing advances of a meeting in which Senator Hick- tained in the Hopwood Room, An- here yesterday aloard the mili- one to three miles along the ir- enlooper (R-Iowa) put into the gell Hall. tary transport Sylvester Antolak. regular 100-mile front. the main force fighting the United Nations. It was understood that talks in Moscow yesterday between U. S. Ambassador Alan G. Kirk and Soviet Deputy Foreign Min- ister Andrie Gromyko produced the Russian "clarification" sug- gesting that the military ,om- manders negotiate cease-fire terms. There had been considerable confusion earlier over the meaning of a cease-fire proposal tossed out by Soviet U. N. Delegate Jacob Malik in a radio speech in New York last Saturday. * * * MALIK HAD SAID that "the belligerents" should discuss an end to hostilities, but left it up in they air as to the exact identity of the "belligerents." The confusion centred chiefly on Red China's official pretense that she is a non-belligerent. The Kirk-Gromyko talk in Mos: cow and another approach to Ma- lik in New York-both ordered by Secretary of State Acheson-are regarded here as the first steps in what may be fairly prolonged East-West explanatory discus- sions. Meanwhile displomats of 16 Uni- ted Nations countries fighting in Korea today formally declared their readiness to end the war un- der terms designed to bring about "genuine and enduring peace" in Korea. * * * THE GROUP, meeting at the State Department, signified their approval of truce moves as Secre- tary of State Acheson sketched the broad outline of possible steps for peace at a session with lawmakers on Capitol Hill. Acheson called on Red China to pull back her troops into Manchuria-as evidence of good faith against further aggression -if a cease-fire is arranged in the Korean War. The 16 U.N. members declared in a statement: "The representatives express their view that their governments have always been and still are ready to take part in action de- signed to bring about a genuine and enduring peace in Korea." * * * SECRETARY ACHESON told Congress members that if Red China agreed to pull back her armies into Manchuria, such a step would "possibly involve" a gradual withdrawal of all foreign troops, including Americans, from Korea. But Acheson warned, in es- timony before a House Commit- tee, that any trickery or rekind- ling of hostilities after United Nations forces had left the Korean war zone might well ex- plode World War III. "If there was a settlement, and if it was disturbed again in Korea, CLEAN-UP DRIVE TO CONTINUE: New Gifts Boost Phoenix otal over $5,000,000 IN LIVING ROOMS across the _ nation, television viewers could T>m note that addict witnesses, though The $5,000,000 mark set earlier represent more than 75% of the voluble about many details of the this June in the Phoenix Project $6,500,000 goal set for the na- sordid business, kept stubborn si- drive has been bolstered by a tionwide appeal. Close to 27,000 lence as to suppliers and sources. $30.000 gift from the Eli Lilly individual gifts have been con- They wouldn't even say in public Foundation, Indianapolis. tributed for the research and it was death they feared but Sen- The combined contribution of development project which will ' ! ! phases of nuclear energy including its social implications. More than 400 doctors, en- gineers, physicists and social scientists will ultimately be en- gaged in Phoenix research. future, according to Lang. How- ever, campaign offices will re- main open here to assist in clean-up solicitations among the University's 130,000 alumni throughout the country.