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.