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Michigan Daily, 1954-07-02

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A,

FRESHMAN RED-HUNTER
See Page 2

4r-

Latest Deadline in the State

4Iaii4

CONTINUED WARM

VOL. LXIV, No. 9 ANN ARBOR, MICHIGAN, FRIDAY, JULY 2, 1954

FOUR PAGES

House Snubs
Ike's Farm
Program
Compromise Plan
Pushed Through
WASHINGTON (-The House re-
fused to accept the administra-
tion's flexible system of farm
price supports Thursday but voted
179-164 for a compromise plan
which would support basic com-
j modities at from 82 to 90 per
cent parity.
Both actions in the big farm
fight were tentative and subject
to reconsideration when the House
takes final action on its general
agriculture bill Friday.
Compromise
President Eisenhower's program
for supporting the main crbps on a
sliding scale ranging from 75 to 90
per cent of parity was shouted
down on a voice vote.
But GOP leaders succeeded in
putting across their last-minute
compromise after intimating it was
an alternative to a presidential
veto of farm legislation this year.
Rep. Halleck of Indiana, the Re-
publican House leader, appealed to
members to go along with the
middle-of-the-road approach "as
the first step to get away from
high, rigid price supports put on in
tc wartime."
Want 90 Per Cent
Many farm state legislators want
another year of 90 per cent sup-
ports for the nation's six basic
crops.
The administration, a 1 r e a d y
loaded down with 6%/ billion dol-
lars worth of surplus farm prod-
ucts acquired under price support
programs, wants a flexible pro-
gram. The idea is to try to dis-
courage production in times of
plenty by lowering supports and
encourage it with high supports
when things are scarce.
The standing vote on the com-
promise, which was not recorded,
went suprisingly along party lines,
with only about 20 Republicans
opposing it and about the same
number of Democrats favoring it.
Rep. Harrison (R-Neb) was the
sponsor of the amendment. 1
Chairman Surprised
Before the vote was taken, Hal-
leck warned advocates of high
price props that they would have
to take the responsibility for pub-
lic indignation if farm surpluses
continued to pile up in unmanage-
able quantities.
Chairman Hope (R-Kan) of the
House Agriculture Committee, who
spearheaded the fight for a con-
tinuation of 90 per cent supports,
said he was surprised by the out-'
cGme. "I thought we were making
some headway," he commented.
Parity is a standard for fixing
farm prices, declared by law to be
fair to the farmer in relation to
the cost of basic things he buys.
'Good Chance'
Hope told reporters he thought
there was "a good chance" of re-
versing the decision on the com-
promise when the House begins a
ji series of rolcall votes Friday. He
said he expected to pick up some
support from the 92 members who
were not voting Thursday.
But Speaker Martin of Massachu-
setts said the result would remain
as it is.
Harrison's amendment, Martin
said, "will permit us to say we've
done the right thing-the right
thing for the farmer, the right
for the consumer, and the right
thing for the country."
Martin apparently had in mind'
the congressional elections next

November, in which farm policy
will be a big issue.
4TH:
Safety Urged
For Weekend
WASHINGTON (R) - Charles F.
McCahill of the President's Action
Committee for Traffic Safety ap-
pealed to newspapers, radio and
television stations Thursday to
join in reminding people that
death takes no holiday on the
Fourth of July.
McCahill, senior vice president
of the Cleveland News and the
Cleveland Plain Dealer, is the
representative of media of public
information on the President's
committee.
"The President has reminded us
t~ia+ nm® AAAn o r r<. ilr

Senate Votes No
On $20 Tax Cut
General Tax Relief Bill Rejected
Because Government Needs Money
WASHINGTON (A)-The Senate struck down yesterday by a 50-33,
vote, an 11th hour move to give every taxpayer a $20 reduction on
his tax bill.
It was the third time in two days that the idea of general tax
relief was rejected. The prevailing argument was that the gov-
ernment needs the money.
In another roll call vote, the Senate took out of the general tax
revision bill the most important part of an administration plan to
give special relief to taxpayers who get part of their income from
dividends. The vote was a lopsided 71-13.
Here, again, the government's '
need for revenue was cited. An- we cannot do anything for the wage
other argument was summed up earner.,
by Sen. Dworshak (R-Idaho), a Those voting on the amendment
candidate for re-election: to whittle down the benefit for div-
"This is not the time for it, when to wittlen dpwn the b1ntfr-

State Phone
Installers
Go on Strike
DETROIT ()-Western Elec-
tric Co. installers assigned to Mi-
chigan Bell Telephone exchanges
struck Thursday.
There were 760 in all, 520 in
Detroit and 240 outstate.
Over the country as a whole,
16,000 WE installers walked out
to support demands of their CIO
Communications Workers union
for wage increases. Negotiations
between the union and company
were broken off in New York Wed-
nesday night.
Could Idle Thousands
The walkout could idle thous-
ands of Bell employes, including
18,400 in Michigan. Telephone op-
erators and maintenance employ-
es also are members of the Com-
munications Workers of America.
J. L. Galland, president of the
installers' Detroit local, said:
"Picketing will start at the dis-
cretion of leaders of our union in
New York City. The installers ex-
pect other CWA members to hon-
or any picket lines set up at stra-
tegic locations."
No-Strike Clause
Michigan Bell Workers recently
signed a new wage contract con-
taining a no-strike clause. Union
spokesmen said they didn't inter-
pret the clause as anplying to
CWA members who respect picket
lines.
WE workers reported for work
as usual Thursday morning, then
walked out at 11 a.m. A strike
at 6 a.m. had been threatened if
no new contract had been signed.
The old agreement expired May 2.

ien income incluae e senators
whose terms expire at the end of
this year. Of these, 27 voted for
the amendment and 3 against it.
This amendment was offered by
Sen. Edwin C. Johnson (D-Colo)
who, incidentally, is not a candi-
date for re-election. It would elimi-
nate a section under which tax-
payers could deduct 5 per cent of
their dividend income from their
tax bill. It would leave in a sec-
tion by which they could figure
the first $50 of dividends as tax-
free.
Democrats assailed the proposed
dividend treatment as special treat-
ment for the wealthy. Republicans
said it was a proper device to en-
courage the flow of money into
stocks so that the economy would
be strengthened by job-creating in-
dustrial and commercial expansion.
The House bill would exempt
from taxation the first $50 of divi-
dend income and permit the tax-
payer to deduct from his tax bill
5 per cent of the dividend income
above $50 in the first year of the
bill. In subsequent years, the ex-
emption would apply to the first
$100 and the deduction would in-
crease to 12 per cent.
With the Johnson amendment out
of the way, the Senate took up a
proposal by Sen. Long (D-La) to
give every taxpayer a $20 credit-
$40 for the man and his wife.
Millikin argued this would, cost
the Treasury $1,400,000,000 a year
and put it under "a harsh,{ oppres-
sive burden."
In the end, there was an almost
solid Republican vote against'
Long's amendment, with only two
GOP senators, Langer and Young
of North Dakota, voting for it along
with 30 Democrats and Sen. Morse
(Independent-Ore).
The bill provides the first major
overhaul of the tax structure in
many years and, while changing no
major rates, provides a variety of
tax cuts on individuals and corpor-
ations amounting to about $1,400,-
000,000 a year.

Guatemala
Authorities
'Overtasked
Arbenz' Regime
Tracked Down
GUATEMALA (-The Guatema-
lan army and p o l i c e were
swamped Thursday with mounting
demands for help in putting down
Communist-leduprisings in the
countryside. They admitted they
didn't have enough reserves.
These authorities already were
overburdened with the task of
amassing evidence of massacres
and torture killings under the Red-
backed regime of ousted President
Jacobo Arbenz Guzman. Another
big task was tracking down the
Communist leaders who were the
backbone of his government.
300 Shot
Officials estimated 300 or more
anti-Communist Guatemalans were
shot dead by Arbenz police in the
10 days after the start June 18 of
the rebellion by the forces of exiled
Col. Carlos Castillo Armas.
The officials said the entire Ar-
benz administration, from the de-
posed President down through hun-
dreds of his police, are being
charged with various crimes.
Arbenz is believed to have taken
refuge in the Mexican Embassy
here, but the authorities have de-
clared they will give no safe con-
duct out of the country to any
former government o f f i c i a 1
charged with a crime.
The army and police headquar-
ters in the capital acknowledged
freely Thursday they are unable to
cope with the demands for help
coming in from the hinterlands.
Threaten Peace
Armed peasants and workers
were threatening to upset the
peace presently being worked out
in neighboring El Salvador by
rebel leader Castillo Armas and
Col. Elfego Monzon, who seized
control of the government here
Tuesday at the head of a new
military junta.
Red leaders, outlawed and on
the run since the downfall last
Sunday of the Arbenz government,
have succeeded nevertheless in
stirring up many farm workers,
peasants and union laborers to vio-
lence against the new authority.
Situation Serious
Fragmentary information trick-
ling in over a lame communica-
tions system - even in normal
times none too good - said the
situation at Escuintla, one of the
country's biggest Communist hot-
beds, still is serious.
Government troops were report-
ed having difficulty making con-
tact with the Red guerrillas in that
area, halfway between Guatemala
City and the chief Pacific naval
port of San Jose. The guerrillas,
many of them armed by the Ar-
benz government at the outset of
the anti-Communist rebellion June
18, were said to be led by top
Communist leader Carlos Manuel
Pellecer.
Curses, Foiled
PONCE, P.R. (P) - A thief
took seven checks totaling $900
in detectives' pay from the de-
tectives' quarters yesterday.
School Fires
Alleged Reds
DETROIT ()-The Detroit Board
of Education yesterday fired two
public school teachers who used

the Fifth amendment in refusing
to answer questions about alleged
Communist party connections.
The teachers, Harold Rosen, 41,
and Sidney W. Graber, 32, had
been suspended by Superintendent
of Schools Arthur Dondineau on
May 5.
They had appeared May 3 be-
fore a House Un-American Acti-
vities subcommittee in Detroit.

M-ajor

Abandoned

by

DEVIL ON THE LOOSE-The Devil's River boils over the lower dam, six miles north of the Rio
Grande and approximately 10 miles northwest of Del Rio, Tex. The raging river joins the Rio
Grande above Del Rio, adding to the flood that is the greatest in the modern history of the valley.
DEATH TOLL RISES:
Texas Border Declared Disaster Area

Portion

of Delta

EAGLE PASS, Tex. -- TheC
south Texas borderland where 55
are known dead and 90 are missing
in the greatest Rio Grande flood
in history Thirsday was declared
a major disaster area.
The count of the dead and miss-
ing continued in the crumbled deso-
lation that once was Piedras Ne-
gras, Mexico, a city of 35,000
across the river, while the historic
crest of the Rio Grande rolled on
150 miles downstream.
90 Missing
The Mexican army surgeon gen-
eral, Lt. Col. Salvador Hernandez
Vela, said the death count at Pi-
edras Negras alone still stood offi-
cially at 38, and 90 were known to
be missing-and still there was no
way of knowing how many bodies
floated down the river into the

anonymity from which they had
come.
Mexican army Maj. Rojelio Mon-
temayor said there could be as
many as 400 missing because so
many Mexican farm laborers were
at the border waiting to get jobs
in Texas.
Damage ran high into the mil-
lions, but no one in authority would
offer an estimate. The cost of five
bridges wrecked at Laredo, Eagle
Pass and Del Rio alone was well
above five million dollars.
Hits Barrier
The crest of the river flood hit its
barrier, the huge 46 million dollar
Falcon Dam and reservoir, almost
200 miles below Eagle Pass. Be-
hind it the cities-Eagle Pass and
Piedras Negras, Del Rio and its
Mexican neighbor Ciudad Acuna,
Laredo and its neighbor Nuevo La-

Senate Leader Says He Will
Quit if Red China Joins UN

Steel Costs Edge Upward I
As workers Get Wage Hike
PITTSBURGH (/P)-The nations biggest steel producer, U.S.
Steel Corp., boosted the price of steel $3 a ton yesterday to offset
a wage increase in its new labor contract.
Just what effect the increase will have on the average American
is still unanswered. Most manufacturers of products made of steel
are inclined to think the price boost will not be passed on to the
consumer.
Hard days have fallen on some

redo-cleaned out the mud and filth
and gave typhoid shots.,-Ail inter-
national bridges between the flood-
ed border points were knocked out.
Half the expected 2% million
acre feet of water headed for Fal-
con Lake already was there today,
and it absorbed it like a gorging
giant. Presidents Ruiz Cortinez of
Mexico and Eisenhower of the Unit-
ed States dedicated the dam only
last October.
Eligible For Aid
President Eisenhower declared
the American side of the flood area
a disaster zone and eligible for
federal aid.
Buildings still stood downtown in
three and four feet of water in Pi-
edras Negras. But out from the
downtown district there were 12-
foot high mounds that once were
the mud and straw homes of the
Mexican poor.
They had no equipment to dig
for possible dead-entire families
simply used their bare hands and
started digging into what once
were their homes.
The health problem was tremen-
dous.
Medical supplies were needed
desperately, especially t y p h o i d
shots. The Red Cross was prepared
o fly over some, but couldn't get
e.learance.
Ike Extends
Trade Treaty
WASHINGTON-President Eisen-
hower Thursday signed into law
legislation extending the recipro-
cal trade program for one more
year.
The program permits the Presi-
dent to negotiate lower tariffs on
foreign goods coming into the Unit-
ed States, in exchange for trade
concessions to this country's prod-
ucts sold abroad.
NLRB Ruling
WASHINGTON (R-The National
Labor Relations Board ruled 4-1
yesterday that an employer must
furnish a union with complete pay-
roll data for collective bargaining
without requiring the u n i o n to
prove it needs the information.

rench
Fight Seen
Near Finish
Army Says Men
Needed at Hanoi
(EDITOR'S NOTE-Tight censorship
prevails in Hanoi, key point in defense
of northern Indochina's Red River
Delta. Larry Allen, who has been cov-
ering the Indochina fighting for two
years on the spot, is in Singapore free
of censorship.)
By LARRY ALLEN
SINGAPORE (--French troops
have abandoned a major portion
of the Red River Delta in Indo-
china. Completion of their with-
drawal will leave 60 per ceyit of
the rice-rich Delta in the hands
of the Communist-led Vietminh and
put four million additional Vietna-
mese under Red control,
Defense Needs
With abandonment of the south-
ern sectors of the Delta, including
four major Frenchlposts, the end
of the almost 8-year-old war ap-
peared not far off. This could come
either by military defeat or a ne-
gotiated cease fire.
A French army spokesman, in
Hanoi, key point in the Delta's de-
fense, said Thursday the giving up
of thousands of square miles of
the richest rice lands in Indochina
without a fight was directed by
defense needs.
He said the withdrawing troops
were needed in the northern and
central Delta zones to protect Han-
oi and the vital Hanoi-Haiphong
rail and highway supply lines from
divisions massed on the Delta bor-
ders." These are in addition to
100,000 Vietminh already infiltrat-
ed into the Delta.
This situation could presage a
"Dunkerque'4 at the northern sea-
port of Haiphong if the French
are unable to hold Hanoi.
Complete Sellout
Vietnamese political leaders as-
sailed the withdrawal as a com-
plete sell-out to the Vietminh. The
French denied it.
The troop withdrawals began
Tuesday after a week of air evacu-
ations of military families, French
and some Vietnamese civilians.
But X was not until Thursday
that the French permitted the news
to come through their tight mili-
tary censorship.
Points from which the French
said they were pulling out include
such important and heavily popu-
lated centers as Phat Diem, Tha
Binh, Nam Dinh, and Nin Binh,
all 45 to 70 miles south and south-
east of Hanoi.
Move Northward
Reports from Hanoi Thursday
said hundreds of troops and sup-
plies moved northward from Nam
Dinh to the French fortress of
Phu Ly, 30 miles south of Hanoi.
The Nam Dinh airstrip was a
merry-go-round of Dakota trans-
port planes, landing empty and
taking off with loads of civilians
and wives and children of Vietna-
mese soldiers.
Troops and war material from
Phat Diem moved by road almost
directly south to the seacoast,
where more than 20 ships awaited
to carry them to Haiphong and
other northern Delta ports.
Evacuate by Boat
Troops from Lac Quan, 60 miles
southeast of Hanoi, were being
evacuated by Red River boats to

the coast and thence by larger
ships northward.
Despite the French plan to
shorten and strengthen their de-
fenses, there were indications they
soon will be left in shaky control
of only the Hanoi-Haiphong lifeline
and a strip of territory in northern
Indochina.
Unless the Geneva conference
negotiates a cease fire in Indo-
china, the Vietminh are expected
to hit the supply line quickly with
massive human sea attacks that
might crush the French Union de-
fenders. That would point to a
northern Indochina Dunkerque at
the port of Haiphong.
There was no assurance the
rebels would wait until heavy mon-

WASHINGTON (R) - Sen. Know-
land (R-Calif) said Thursday that
if the United Nations admits Red
China he will quit his post as the
Senate Republican leader and de-
vote all his energy to take the
United States out of the U.N.
The deadly serious, deep-voiced
Knowland declared in a Senate
speech that France, "in a thinly
disguised surrender," is letting
much of the Indochina slip into
Red hands while "the free nations
of the world seem to be faced with
inertia."
'Concerted Effort'
Following this Communist victo-
ry, he predicted, there will spring
up a concerted effort to bring Com-
munist China into the U.N. through
action of the General Assembly.
"On the day that Communist
China is voted into membership,"
he said, "I shall resign my major-
ity leadership in the Senate so that
without embarrassment to any of

my colleagues or to the adminis-
tration, I can devote my full ef-
forts in the Senate and throughout
the country to terminate United
States membership in that organi-
zation and our financial support of
it. "
17 Recognize
Knowland has been majority
leader, succeeding the late Sen.
Taft of Ohio, since Jan. 5.
Before and since that date, he
has been crying for action to stem
communism, especially in Asia.
So far, 17 of the 60 member na-
tions of the U.N. have recognized
Red China. It is expected that Rus-
sia and India will make a call in
the General Assembly convening
Sept. 21 for the admission of Com-
munist delegates to replace the Na-
tionalist Chinese. Some key diplo-
mats at the U.N. say, however,
they do not expect any hard fight
then for Red China's admission, but
only the formality of a call for it.

manufacturers of automobiles,
home appliances, farm equipmentI
and many other industries using
steel. Their sales already are off.
Most manufacturers, however,
declined to comment immediately
on the effect of increased steel
prices.
Hike to Come Soon
Clifford F. Hood, U. S. Steel
president, said the price hike will
be put into effect as soon as cost
production lists can be prepared.
That is expected to take only a few
days.
Basic carbon steel, the cheapest
grade made, is now selling for $120
a ton at the mill.
Most of the nation's big steel
producers are expected to fall in
line quickly and announce price
increases similar to U.S. Steel's.
Price Rise Last Year
Last year the industry boosted
the price of steel $4 a ton after
signing an agreement with the CIO
United Steel Workers giving work-
ers an 8% cents an hour pay hike.
That boost was passed on to con-
sumers.
Roy W. Johnson, executive vice
president of General Electric Co's.
appliance and electronics division,
said the new steel rates may force
higher price tags on a few con-
sumer products manufactured by
his company.

the firm probably will absorb the
hike.
Peter V. Moulder, executive vice
president of International Harvest-
er Corp., said:
"Under present market condi-
tions for farm equipment there's
no chance of our attempting to
pass along to consumers the. in-
crease in the cost of steel."
Auto manufacturers declined to
comment, but trade circles in the
industry feel stiff retail competi-
tive conditions will cause the car
builders to absorb the cost.
Some auto sources, however, feel
the steel price hike may be re-
flected in costs of 1955 models.
Gibson Refrigerator Co., Green-
ville, Mich., says the $3 a ton in-
crease will amount to only about
30 cents more a box. The firm said
it will not increase prices.

AIRLINER FOLLOWED:
Weird Objects Seen Over Labrador

Gunfire at Israel-Jordan
Border as UN Asks Peace

LONDON (A) -
British Air Force
ficers Thursdays

American and
intelligence of-
studied reports

that seven weird, flying bleak ob-
jects followed a British airliner for
80 miles Wednesday night near
Goose Bay. Labrador.

I I

"At 0105 GMT on June 30 about
150 nautical miles southwest of
Goose Bay, height 19,000 feet, fly-
ing in clear weather above a layer
of low cloud, noticed on our port
beam a number of dark objects at
approximately the same altitude as

relative to us did not. It was al-
ways about 90 degrees to port. The
distance from us appeared not less
than five miles, possibly very
much more.
Small Objects
"A number of small objects ac-

JERUSALEM (R)-Gunfire roared
along the tense Israel-Jordan bor-
der in this divided city again late
Thursday. The U.N. Armistice
Commission redoubled efforts un-
dertaken just after the shooting be-!

ing after members of the U. N.
truce oganization intervened four
times with Israeli and Jordan of-
ficials. Both sides reported a re-
sumption after noon.

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