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July 30, 1954 - Image 1

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Publication:
Michigan Daily, 1954-07-30

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Lalest Deadline in the State MORE RAIN

VOL. LXIV, No. 29 ANN ARBOR, MICHIGAN FRIDAY, JULY 30, 1954

FOUR PAGES

U.S. Demands
RejectedbyReds
British Receive Prompt Apology
From Chinese For Air Attack
WASHINGTON-(/P)-Red China has contemptuously turned
down American protests against Communist fighter plane attack on
British and Anerican aircraft over the South China Sea.
The Reds refused even to consider the protests.
The State Department disclosed Thursday the rejection had
occured Wednesday at Peiping. It announced that the matter "will
not be permitted to rest there" but did not say what new steps might
be taken.
Two salient points emerged from the situation:
1. The rejection means that the Chinese Communists are refusing
to promise this country to punish those persons responsible for the
China sea attacks, or to give assurances there won't be more such
incidents,
2. The State Department disclosed that Britain has sent a for-
mal commendation for the rescue -

efforts of the U.S. Navy in connec-
tion with the shootings. American
officials have viewed the Commu-
nist tactics, of being contemptuous
toward America. and placatory to-
ward Britain, as an effort to drive
,. a wedge between them.
While Peiping refused to accept
the American protests, it has
apologized promptly to Britain for
the destruction of the British plarre
involved.
Two American protests were de-
livered to the Chinese Foreign Of-
' fice Wednesday by the ranking
British diplomat there, Humphrey
Trevelyan.
Here, the State Department re-
lated, is what happened:
Trevelyan told Chinese Vice
Minister of Foreign Affairs Chang
Han-fu, that he was instructed by
his government to present the pro-
test of the United States against
what the United States called the
"barbarous and lawless attack" of
Chinese Communist fighter planes
against an unarmed British air-
liner 30 miles south of Hainan Is-
land last Friday. Three American
citizens were lost.
Change said that this was a mat-
ter between the Chinese Commu-
nist and British governments and
was no concern of the United
States.
Trevelyan protested on behalf of
the United States against what this
government had called an "unpro-
voked and wanton" attack by two
Red fighters Monday on American
carrier-based aircraft which were
searching for survivors of the
British airliner. The two Red
planes were shot down in the clash
which the United States said oc-
curred over international waters
of the open sea.
School Editors
End Workshop
Twenty-three high school publi-t
cation editors from throughout the
Great Lakes area will be honored
today at the University.'
At 11 a.m. graduation exercises
they will receive certificates for
the completion of a two-week High
School Journalism Workshop, pre-
sented by the department of jour-
nalism.
The ceremony will be presided
over by Prof. Wesley H. Maurer,
department chairman. The candi-
dates will be presented by Prof.
John V. Field, of the journalism
department.
After the event, the "graduates"
will be honored at a "30" luncheon
in the Michigan League.

Senators
Unanimous
On UN Issue
WASHINGTON (2A - The Senate
spoke with one voice yesterday
against the entrance of Red China
into the United Nations.
It voted 91-0 to write into the
3,100,000,000 foreign aid bill a re-
iteration by Congress of "its oppo-
sition to the seating in the United
Nations of the Communist China
regime as the representative of
China."
The amendment also requests
President Eisenhower, in the event
of Red Chinese adniission, to in-
form Congress "of the implications
of this action upon the foreign
policy of the United States together
with any recommendations which
he may have with respect to the
matter."
"Wait and See" Plan
Majority Leader Knowland of
California was the sponsor of this
"wait and see" plan, which ap-
parently reflects administration
policy.
Both Eisenhower and Secretary
of State Dulles have advised going
slow on the question of quitting
the United Nations. They also have
expressed confidence that Red
China will be unable to obtain a
seat. The issue may be raised at
the U.N. this fall.
After approving several other
amendments the Senate recessed
until Friday without reaching a
final vote on the aid bill.
Amendment Defeated
Sen Capehart (R-Ind) failed to
win adoption of an amendment to
require that 750 million dollars of
the foreign aid funds requested for
the fiscal year which began July
1, be in the form of loans rather
than grants. It was defeated on a
57-33 rollcall vote.
President Eisenhower originally
asked for 800,million dollars to help
carry on the war against the Red
Vietminh forces in Indochina. After
the French came to terms with
the Communists, yielding most of
Viet Nam above the 17th Parallel,
Eisenhower requested that the
funds be earmarked for us at his
discretion in any part of Southeast
Asia.
The House has voted to approve
712 million for the purposes, and
the same amount is contained in
the pending Senate bill.

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.Reprieve
WASHINGTON -- (R) March
15 - Traditional filing date for
personal income tax returns for
40 years - is scrapped as the
deadline under a provision of
the tax revision bill sent to
President Eisenhower last night.
The new date is April 15, ef-
fective next year.
It has been March 15 since
the modern-day income tax law
first went on the books In 1913.
World News
Roundup
Atom Subs .. .
WASHINGTON -1 P - Two
private shipyards yesterday lostwa
chance to get the contract for a
fourth big aircraft carrier of the
Forrestal class because the Navy
said their bids were too high. The
contract went to the New York
Naval shipyard at Brooklyn, N. Y
At the same time the Navy an-
nounced contracts for two new
atom-powered submarines, which
will bring the total of such craft
to four.
* * *
Stay of Execution . ..
SAN FRANCISCO - 0P) - Kid-
naper-rapist Caryl Chessman, au-
thor of the widely read book, Cell
2465, Death Row," won an indefin-
ite stay of execution yesterday less
than 24 hours before he wos to
have died in the state gas cham-
ber.
* * *
Bomber Downed . .
QUONSET POINT, R. I. -A'
- A speedy Navy bomber was dit-
ched and sank in the ocean 114
miles off Montauk Point, N. Y.,
yesterday, but its 11-man crew
cleared the craft in 30 seconds and
was rescued by an Air Force Bomb-
er which raced 150 miles to com-
plete the operation.
The rescue was completed two
hours and six minutes after the
46th Air Force rescue squadron
based at Westover Air Force Base
Mass., received the first distress
call from the two-engine P2-V
Neptune bomber.

Senate

On McCarthy Censure

Starts

'New RecaII
Campaign
Underway
*a'
Nationwide Drive
' Planned for Fall
WASHINGTON (-A new move
to unseat Sen. McCarthy (R-Wis)
will be launched after the Novem-
ber elections, Leroy Gore, chair-
man of the 'Joe Must Go" clubs,
1 announced Thursday.
As outlined, this will be a far
more elaborate drive than the one
that failed last spring. Not only
will the "Joe Must Go" people be
after signatures from Wisconsin
voters, but they also will launch
a nationwide campaign to persaude
[ citizens to write their senators. The
'aim is to make sure that, in case
Wisconsin votes to unseat McCar-
thy, the Senate will go along with
the decision.
Gore, who says he has long been
a Republican, predicted he would
encounter no difficulty in: (1) get-
ting enough signatures to set up a
recall electionhand (2) defeating
-McCarthy in that election.

-Daily-Duane Poole
UNDER THE TREES-University students and Ann' Arborites relaxed last night on the steps of the
General Library and under the campus trees to hear an outdoor' concert by the University Summer
Session Band. The band, under the baton of Prof. William D. Revelli, was located near the east
wall of Mason Hall, near the top of the picture. The program included works by Rossini, Sousa, and
Lecouna, as well as the Michigan march, composed especially for the University by Edwin
Franko Goldman.

Debate

To(

lay
Move
May Tie Up
Legislative
Program

Democrats Take
No Party Stand
WASHINGTON AM-Sen. Knowl-
and (R-Calif) decided Thursday to
allow "a full dress debate . . . a
full discussion" of moves to cen-
sure or investigate Sen. McCarthy
(R-Wis).
Knowland, the Senate's Republi-
can leader, said he had reached
this decision even though the de-
bate probably "will tie up'the leg-
islative program."
In another development Thurs-
day, the Senate Democratic Policy
Committee decided against taking a
party stand on resolutions propos-
ing censure or investigation of Mc-
Carthy. It pronounced them "a
matter of conscience upon which
each individual senator should
vote his convictions without re-
gard to party affiliation."
Expects Bitter Arguments
The pro and con McCarthy argu-
ments are to start Friday. They
are likely to be bitter.
The situation came about first
by the resolution offered by Sen.
Flanders (R-Vt) which in its pres-
ent form would propose that the
Senate declare McCarthy guilty of
unbecoming conduct as chairman
of the Senate's Investigations sub-
committee.
Sen. H. Alexander Smith <R-NJ)
offered a substitute course Thurs-
day. He called for a senatorial
committee of three Republicans
and three Democrats to investi-
gate, and report by next Feb. 1,
on "the alleged good or evil of so-
called McCarthyism."

"The people of Wisconsin have RsECTj YOU -
changed their mind about McCar- HO IT A *T
thy," Gore said, "and he ought to l a R
have to go to bat again." _...,.. Tr

" "
A"'% TV 01 m ' lk i

Gore, 50-year-old editor of the
Sauk, Wis., Prarie-Star, was in
e Washington Tuesday to line up
backing for his renewed recall
, campaign and also to do what he
' could in behalf of the move by
Sen. Flanders (R-Vt) to censure'
McCarthy.

* # Gore said he would be talking
with a score of political leaders
of both parties, but he declined to
WASHINGTON - (W) - The identify any of them except Sen.
Federal Power Commission yester- Wiley (R-Wis). He added that Wi-J
day blocked a $12,127684 annual ley was a personal friend.

increase in wholesale natural gas
rates which the Panhandle Eas-
tern Pipe Line Co. proposed to put
into effect August 1.
*% **
Military Housing . ..
WASHINGTON - (AP) - The'
Senate Armed Services Committee
yesterday approved legislation to,
authorize construction of 11,967
military housing units. The House,
later voted for 13,583 units.
The Senate committee's reduc-
tions, for the most part, were in
the number of units allowed for'
each project. Few, if any projectsl
were completely eliminated by the!
Senate group. *
Pilots Strike .
CHICAGO - (02) - The AFL
Airline Pilots Assn. said yesterday
it will go ahead with its strike
against American Airlines one
minute before midnight tonight.
Clarence N. Sayen, ALPA presi-t
dent, said all of America's more
than 1,200 pilots have been alert-
ed to leave their jobs at that hour.;

The Wisconsin constitution, Gore
explained, provides that 25 percent
of those casting ballots in the last
previous gubernatorial e 1 e c t i o n
must sign recall petitions before
a special election can be held.
Gore showed up in town with a
vast sheaf of papers and said it
contained about 250,000 of 355,-
000 legal signatures he asserts he
collected.
But in Milwaukee, Wisconsin
GOP Chairman Robert L. Pierce
said "I doubt that he even had
100,000 signatures. Let him have
his fun. He never had it so good
since he started his recall efforts."
Pierce predicted the new recall
campaign "Probably will flop like
the last one."

B ill Passe
BySenate
Sella.Measure
For kes Okay
WASHINGTON «'i-The SenateI
Thursday night passed the Eisen-
hower administration's big tax re-
vision bill carrying a wide variety
of benefits for many individuals
and corporations.
The measure, a compromise ver-
sion already passed .by the House,
now goes to President Eisenhower.
The President has called it the
cornerstone of his 1954 legislative
program.
The measure, 'the first complete
overhaul of the tax laws in 75
years, goes to the White House
with most of the key provisions
in exactly. the form that Eisen-
hower recommended in January.
It represents the second major
item on his legislative priority list
to go to the President on successive
days. Wednesday Congress sent
him the general housing bill. In
this measure, however, the Presi-
dent's public housing features were
cut far below what he had asked.
Bill Cuts Revenues
The tax bill cuts government
revenues an estimated $1,363,000,-l
000 in the first year. The revenue
loss will be greater in future years.
Senate Democrats centered their
attack on a provision giving a tax
cut to stockholders on their divi-
dend income.

WASHINGTON IR-Here are ma-
jor provisions of the general tax
revision bill passed. by the Senate
Thursday night and sent to Presi-
dent Eisenhower for his signature:
DIVIDEND INCOME - Stock-
holders deduct their first $50 of
dividend income, and then subtract
4 per cent of .their remaining divi-
dend income from their total tax!
bill,
CORPORATION INCOME TAX-
ES-52 per cent, rate continued for
12 more months, retroactive to last
April 1.
MEDICAL EXPENSES - TAx-
payers deduct medrcal expenses
above 3 per cent of their income,
instead of 5 per cent as now; this
is partially offset by a new provi-
sion limiting medicine and drug
deductions to expenditures in ex-
enss of 1 ner cent of income. Max-

iy s rss s v v . i

split their income for tax purposes
and thus get in a lower bracket.
The final version permits this in-
come-splitting only for widows and
widowers for two years after the
death of their husband or wife.
DEPENDENTS - Parents may
count as dependents children they
support under 19 or older children
in college, even if the children
make more than 600 a year.

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Reveord 1 nx Sumry
Rev ewed1 in Summary

This resolution, if adopted, would,
put off any Senate showdown on
the issue until some months after
the November election. Besides the
six members of the study commit-
tee, Vice President Nixon would

SSOIL CONSERVATION - Far'm- serve as chairman ex-officio.
ers may deduct conservation out- Knowland, who previously'had
lays up to 25 per cent of their' said he would move to table
gross income. Flanders' resolution, told reporters
DEPLETION - More liberal al- Thursday he had nothing to do
lowances for the exhaustion of with Smith's substitute.
natural resources by mining firmns. Flanders said Wednesday that he
natura CresourYA miin . expected senators to take one of
LOSS CARRYBACKS-A plan to three positions on his censure res-
let corporations set off losses in olution: To vote "yes, no or dodge
one year against profits of two i

In the nationwide
hopes to get two to
persons on record on

drive, Gore
five million
his side. I

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If McCarthy loses in a Wisconsin
recall election, the Senate still
does not have to seat the success-
ful candidate.. The Senate is the
sole judge of its membership.

1 ea'~L~tK J~LU k U~ye s Won't Be There
imum deductions are doubled to at present, and other more liberal McCarthy, in New York Thur
$10,00 forE PEamEly- loss provisions, day, said he did not expect to be
CHLD - Rless than EXPENSES in- CONSOLIDATED RETURNS - present when the Senate takes up
come, and all single heads, of house For regulated public utilities, the Flanders' move.
holds deduct up to $600 of ex- bill eliminates a 2 per cent penalty Sen. Capehart (R-Ind) has said
penses of caring for children under tax imposed when related corpora- that he is ready, if Flanders pre-
12 se other dependents while the tions choose to file a single, con- sents his motion, to introduce an-
12aorpoer deednswsolidated return. It also softens the other one proposing to censure
taxpayers work. requirements for all corporations Flanders for his attacks on Mc-
RETIRED PERSON - Deduct which choose to file a consoliated, Carthy.
up to $1,200 of retirement income.1 return. f Flanders said he was going
This applies to all persons over 65i
and to retired government workers ACCOUNTING PROVISIONS -; ahead and, while he would fight
under 65, such as school teachers More liberal accounting require- Smith's investigation plan as a sub-
or policemen.. The cut for those ments for corporations. stitute, he would favor it as a
over 65 is in addition to the dou - - separate action.
bled personal exemption, amount- (qu*'It4L! Sen. Ralph Flanders (R-Vt) was
ing to $1,200, already allowed per- quoted last night in Philadelphia
sons above that age. Second annual two-week pro- as saying whether his resolution
SINGLE HEADS OF HOUSE- gram on digital computers will be to censure Sen. Joseph McCarthy
HOLDS-The conference commit- held at the University beginning (R-Wis) passed the Senate today
tee eliminated a House-approved Monday, August 2, and running or not, McCarthy's positioni "will
plan to let ali single heads of through August 13, presented un-1 be very badly damaged."
households get the same benefits der auspices of the Summer Ses-hI Flanders said he was confident
extended to married couples who sion and the Extension Service. ;hismotion would pass and that
______ -he would be able to force a roll-
call vote, thus getting "a thorough
C hu chllWrecord of the senators on the floor
and some of those who are ab-
sent.
For Suez Withdrawal Mceshaulinice

..-,. ,.-. ,. .. ,.. . ,... .. _ .-,. _ ._... .._... .,. _-,. ,.- -.r ..... ..

SEEKS 'SENSIBLE' POLICY: This had been considerably wa-
tered down from the original Ei-
senhower request. But opponents'
Powell Calls For Better Re lations With Latin Aierica still sought unsuccessfully to d
feat the compromise bill so that!
it would have to go back to an- 1
B BAERT BRRAND **than in EV UAT and n 3 erC ent other conference with the House.,

ny nrA OA
An expert in Latin American af-
fairs made an appeal yesterday
that the United States construct a
foreign policy which makes sense
toward our Western Hemisphere
' neighbors.
Speaking on "Cross Currents in
Today's Latin America," Philip W.
Powell, associate professor of his-
tory at the University of California
at Santa Barbara, added that the
United States cannot afford to be
neglectful in our Latin American
relations. This, he said, is because
we have important links with them
and because our national survival
r may eventually well depend on a
strong Western Hemisphere.
Common Ties
Some of the common ties be-
tween the United States and Latin
America which Prof. Powell cited
sire ,'ilir.alafnnnmirn nri nnli4-

G an in murope una 3 pf ll " ", "-, ,", _,.. _
more than in Canada. Biggest One-Year Cut
And, he added, we have import- Final enactment of the bill com-
ant import and export interests, pletes a 7 -billion-dollar 1954 tax
there. reduction program. This is the big-!
"Democratic Expression" gest one-year cut, in history.
Prof. Powell ob.erved the over- The two biggest cuts-three billion
tones of what we regard as in- through a 10 per cent personal- in-

stability in the political affairs of come tax cut effective last Jan. 1
Latin America as witnessed in re- and two billion through expiration LONDON (i- PRIME Minister
volts and reyolutions as a demo- of the corporation excess profits Chuhill u full od d
cratic expression. Thih is related tax on the same date-were fixed
to the Latin American's sense of in a bill enacted in 1951 under a rebellion in his own party Thurs-1
democracy which allows impulsive Democratic rule. day night and won overwhelming
change, he said. The other reduction was the one approval in the House of Com-!
"They don't make very good billion cut in assorted excise taxes mons for his historic decision to
Communists," Prof. Powell de- effective last April 1. The Treasury withdraw British troops from the'
clared in reference to Latin Ameri- fought this, but the President
cans, although, he added the area signed it on recommendation of Suez Canal Zone.
makes "good working ground for his congressional leaders. The House supported Churchill's
Communism." Offsetting "a major part of this evacuation policy by a vote of{
He noted a strong feeling of! 1 -billion-dollar first-year revenue 257-26. It had just heard a gov-
individualism in Latin America loss is a provision extending for er5-6ntdha iousthat'dhego-
and their sense of democracy one year the 52 per cent corpora- ement declaration that the H-b
+i bnm., a in t Ti I bomb has made'obsolete the billion

_. ' I-,

proved by U.S. government leaders
calls for transfer of the 83,000
British troops from their Suez base
within 20 months after a detailed
pact is signed. The seven-year
agreement gives Britain the right
to. occupy the base in case of at-
tack on Turkey or any of the
Arab League states. The vast in-
stallations dominating the strate-
gic waterway are to be kept in
shape by British or civilian care-
takers under c o n t r a c t to the
British.
Saeing to rally the hbacking of

E 0

Federal Jury

DETROIT (R-Atthur McPhaul,
executive "secretary of the Mich-
igan Civil Rights Congress, was
indicted yesterday on a charge of
contempt of Congress by a Federal
grand jury.
McPhaul declined to answer
questions put to him in Detroit
by the House Un-American Activ-
ities Committee in February, 1952.
He also refused to produce books
and records of the Civil Rights
Congress, which is on the U.S. At-
E onev Gerial's rist of -subversive

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