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Evening star. [volume] (Washington, D.C.) 1854-1972, June 03, 1947, Image 1

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I . I-i-----’--—-—----—__
Britain Will Quit
India This Year;
Partition Likely
2 Dominions Planned
Till '48 if Indians
Vote to Split Country
By th# Associated Press
LONDON, June 3. —Britain
promised today to hand over
power in India to the Indians
this year—under a temporary
dominion status which appeared
to make inevitable the partition
of the country into Hindu and
Moslem states. ,
The Indians themselves are to
decide whether they will have one
or two governments.
Partition was the principal theme
of the new British Indian policy,
announced simultaneously to the
Indian people and in both houses
of the British Parliament after
acceptance by rival Indian political
leaders.
The Indian leaders advised the
Viceroy, Lord Mountbatten, in Npw
Delhi today that they would divide
the country between Moslems and
non-Moslems and take over power
from the British as peacefully as
possible.
Plan “Favorably Received.”
Politicians in New Delhi predicted
that, when tempers and tension were
calmed, both the Hindu state and
the Moslem state might ask to re
main in the British Commonwealth
of Nations.
Prime Minister Attlee, announcing
the new plan in the House of Com
mons, said it had been “favorably
received" by the Indian leaders, leav
ing little doubt that the offer for
splitting of the country would be
accepted and acted on.
The Viceroy told the Indian people
of the plan in a broadcast, uord
Listowel, the India Secretary, made
the announcement in the House cf
Lords. A white paper was issued
on the subject.
Legislation will be introduced
during the present session of Parli
ment for the transfer of power
to one or two Indian governments,
depending on which system the In
dian people subscribe to.
Thus, until the absolute with
drawal of the British, scheduled for
July, 1948, India will be composed
of one or two self-governing coun
tries which will belong to the Brit
ish Commonwealth of Nations.
Churchill Backs Proposal.
Former Prime Minister Winston
Churchill threw the backing of the
Conservative opposition behind the;
principle of temporary dominion !
status for India—whether as a
united country of 390,000,000 or
as a separate Pakistan (Moselm)
and Hindustan (Hindu)—but re
served the right to oppose details of
the plan.
Mr. Churchill said a "blood bath”
for India “may stand very near."
He added that the partition pro
posal might “offer to India some
prospect of escape from one of the
most hideous calamities that has
ever ravaged the vast expanses of
India.”
Communist Willie Gallacher of-:
fered the sole opposition to the plan.:
He said he was “the more suspicious
of the solution because Mr. Church
ill, who has a bad record in connec
tion wth India, gives it such sup
port."
Machinery for Decision.
Briefly, the machinery for settling
the question of partition in the Mos
lem areas will be as follows:
1. Indian members of the pro
vincial legislative assemblies of Ben
gal and Punjab will be asked to
meet in two parts, one representing
Mosley majority districts and the
other the other areas of the prov
inces. If either part decides by a j
majority vote in favor of partition,
division will take place.
2. If—as expected—partition is de
cided on, a. boundary commission
will be set up by the governor gen
eral, in consultation with leaders!
of the major political-religious
groups, to split the partitioned prov
inces into Moslem and non-Moslem
areas. Temporary boundaries are
indicated in an appendix to the
plan.
Sind’s Legislative Assembly will
decide on partition at a special;
meeting. If Punjab decides on par
tition, a referendum will be held
among the electors of the adjacent
(See INDIA, Page A-6.)
Late News
Bulletins
Argentine Accord Seen
An end to long-standing
differences with Argentina
was indicated after a confer
ence today between President
Truman and Argentine Am
bassador Oscar Ivanissevich.
The White House said Mr.
Truman “indicated his will
ingness" to renew consulta
tions with other American re
publics on negotiation of an
inter-American defense pact,
which had been blocked by the
United States because of dif
ferences with the Argentine
government.
Probers 'Told of Forgeries
A Senate Small Business
Subcommittee investigating a
“gray market" in steel said to
day it has found “evidence of
forgeries of steel orders" on
“stolen letterheads" of the
Bethlehem Steel Co. The sub
committee said Bethlehem has
given it an "amazing story"
involving theft of company
letterheads from its Philadel
pha district sales office. .
# *
Rees Bill Means Loyalty Probe
Of 42,000, Flemming Declares
Civil Service Commissioner Says Estimate
Does Not Indicate This Many Are Subversives
By Joseph Young
Civil Service Commissioner
Arthur S. Fleming estimated
today that a full-fledged scrutiny
of the loyalty of Federal em
ployes would mean the investi
gation of 42,000 Government
workers.
He told a House Civil Service
Subcommittee that a preliminary
screening of personnel would dis
close information of possible sub
versive activities that would make
necessary the examination of the
records of that number of employes.
The subcommittee today opened
hearings on the bill introduced by
Chairman Rees of the Civil Service
Committee calling for Federal loy
alty investigations.
Mr. Fleming made it clear that
this did not mean all of these
42,000 employes or even a majority
of them were disloyal. He said the
commission felt than an individ
ual’s past associations or actions
would make it necessary to in
vestigate fully the 42,000 cases.
Mr. Fleming used the 42,000 fig
ure in registering the Commission’s
objection to some features of the
Rees bill, which differ from the
President's executive loyalty order.
The Rees measure ■would set up a
Federal Loyalty Board which would
have absolute power in determining
whether an employe should be fired,
or if a job applicant should be hired.
The President’s order calls for the
board to serve in an advisory ca
pacity, with the final loyalty de
cisioas left up to the individual de
partments and agencies.
The large volume of cases that
would come before the board undt*
the Rees bill would prove too great
a burden and consequently the
board would “fall far behind” in
'See LOYALTY, Page A-6.)
Universal Training
Hearings Ordered
By House Committee
International Situation
Too Serious to Justify
Delay, Dr. Compton Warns
By the Associated Press
The House Armed Services
Committee today ordered public
hearings on universal training
after Karl T. Compton termed
the international situation “toe
serious to justify delay.”
Dr. Compton, who headed Presi
dent Truman’s advisory commis
sion. which recommended universal
training, telegraphed the commit
tee:
“There is no certainty that in
trigue backed with force has been
abandoned as an instrument for na
tional aggrandizement and unhap
pily the present actual evidence in
some quarters points otherwise.”
Chairman Andrews told reporters
hearings will start in “a week or 10
days” before the full committee, with
Dr. Compton as the first witness.
World Future Obscure.
Dr. Compton's message said:
"If anything impresses our com
mission on universal training more
than the wide implications of this
problem, it was the positive value
for peace of adopting military train
ing program and the great risk in
not doing so. 1
rne international future is still
obscure despite our ardent hope and
effort for the success of the United
Nations as effective instrumentality
to insure peace. » • •
“All the other great nations now
have universal military service in
scope far beyond our more modest
proposal for universal training.
“We therefore believe situation
is too serious to justify delay or
to gamble on safely avoiding the
issue. * * * Hope Congress will
tackle the issue promptly and cour
ageously."
Opponents to Be Heard.
Mr. Andrew's made it clear that
opponents of the plan will be given
full opportunity to present their
views.
The docket of the present session
does not provide for a training bill,
since a measure of such controver
sial nature would require long de
bate, and Congress is slated to ad
journ next month.
Mr. Andrews said he sees no need
for prolonged hearings, explaining
that extensive hearings have been
held in recent years by the House
Military Affairs Committee and by
the now extinct special Postwar
Military Policy Committee. He has
been a staunch advocate of univer
sal training.
Troops Rushed to Check
Macedonian Guerrillas
By the Associated Press
ATHENS. June 3.—Press dis
patches from Northern Greece said
today that government reinforce
ments had been rushed to the Gre
vena area in Western Macedonia tc
combat guerrilla bands who burned
170 houses in four villages and
killed 15 insurgents who tried tc
surrender.
Another dispatch said 800 guer
rillas had attacked Servia, north
of Larisa. Several women were said
to have participated in the at
tack, which was reported repelled
by government forces.
Truman May See Press
President Truman “probably" will
hold a news conference at 10:30
a.m. Thursday, Press Secretary
Charles G. Ross announced today.
Hungarian Minister
Here Called Home for
Talks by Red Regime
Consultations With All
Representatives Abroad
Are Indicated in Order
Aladar Szegedy-Maszak, Hun
garian Minister here, has been
ordered by the new Communist
dominated government in Buda
pest to return home for con
j sultations.
A Legation official said a cable de
coded this morning indicated that
the new government in Budapest
wanted to have a conference of all i
Hungarian Ministers abroad.
The instructions were not inter
preted to mean that Mr. Szegedy
Maszak was to be replaced here.
Members of his staff assumed, for
the time being at least, that he
would return after'the consuitations
in Budapest.
Mr. Szegedy-Maszak, a career dip- j
lomat who has not been affiliated'
with any of Hungary’s political par
ties, has represented his country;
here since diplomatic relations were
resumed early last, year.
Standing With Reds Uncertain.. !
His activities have indicated that'
his political outlook was non-Com-,
muuist, leaving his standing with!
the new pro-Communist regime in
Budapest uncertain.
It was pointed out that he was!
representing a non-Communist gov
ernment, Premier Ferenc Nagy's, I
and that for that reason his own !
| activities might be considered non
; Communist.
! Uncertainty also surrounded the
future of the Hungarian Legation’s
youngest attache—22-year-old Fer- i
| enc Nagy, jr., son of the Premier
ousted in the Communist coup last;
week. He joined the Legation staff
! here early this year, beginning his
diplomatic career.
The Legation has issued no state
ment since the resignation of Mr.
Nagy and today refused comment,
j Attaches said a statement may be;
i issued in a day or two “as soon as
the situation is clarified.”
Many Diplomats Reported
Scheduled for Call Home
BUDAPEST. June 3 (/P),—Hun
garian political informants said to
day that Hungarian representatives
abroad would be recalled soon by
the new Communist-dominated
Hungarian government.
The diplomats are to "report to
the government,” the informants
said.
! Prominent among those said to
! be scheduled for recall were Paul
Auer at Paris, who wTas pro-west
. ern in his views before he left
\ Hungary, and Ferenc Gordon, Min
; ister at Bern, a friend of former
Premier Ferenc Nagy, who resigned
as head of the government last week
| while on vacation in Switzerland.
Developments in the Hungarian
political situation moved swiftly. It
was announced that the new Pre
mier. Lajos Dinnyes, the left-wing
Smallholder, had chosen two Com
munists to head his office's press de
partment.
The Smallholder newspaper. Mag
yar Nemzet, reported that the Rev.
Istvan Balog’n, a priest who is secre
tary general of the Smallholders
Party, had announced his resigna
tion because of "ill health.”
It was announced that the Politi
cal Committee of the Smallholders
Party, on Communist insistence, had
formed a subcommittee of five to
study the pasts—"after liberation"
(See HUNGARY,' Page A-6.)
Court Orders Robert Ringling
Restored as Head of Circus
By the Associated Press
DOVER. Dei., June 3.—The Su
preme Court of Delaware today
reinstated Robert E. Ringling, 50,
of New York, as president of the
Ringling Bros.-Barnum & Bailey
Combined Show's, Inc.
The court's decree also removed
| James A. Haley, John Ringling
North and James R. Griffin, who
claim the offices of president, first
vice president and secretary-treas
urer, respectively, by enjoining them
from “in any manner interfering
with the conduct of the business
and affairs" of the circus.
The legal tangle over the officers
of the circus stemmed from the last
annual meeting in 1946 when Mrs.
Charles Ringling, mother of Robert,
charged that Mr. Haley's wife. Mrs.
Aubrey B. Haley, the widow of Rich
ard Ringling, had breached an
agreement which the two entered in
September. 1942.
The agreement, which continues
to 1951. provided that Mrs. Haley
and Mrs. Ringling were to vote
their stock in a block and in the
event of a disagreement, the matter

was to be placed in the hands of
an arbitrator. Karl Loos. Washing
ton attorney. Mr. Loos directed
the Haley shares to be voted for
Mr. Haley. Mrs. Haley. Mrs.
Charles Ringling. W. P. Dunn, jr..
and Robert Ringling.
At the annual meeting. Mrs.
Haley was absent and her husband
voted the shares for himself and
Mrs. Haley. Mrs. Ringling then
filed suit in Chancery Court to j
have the election declared invalid.'
Chancery Court last year held the 1
agreement between to two women
was valid and the Haleys appealed
the case to the Supreme Court.
Early this month the Supreme
Court upheld the lower courtb
ruling but did not specify who yere
the legal officers of the circus.
Mrs. Ringling's attorney, Clair
J. Killoran, then asked the high
tribunal to issue a decree which1
would spell out the legal position of
the parties involved.
* The court named Mr. Dunn sec
retary and treasurer and Mrs.
Charles Ringling and Mrs. Haley,
vice presidents.
m
Quick Approval
Of Pacts Asked
By Vandenberg
Says U. S. Can't Wait
'Too Much Longer' for
Soviet Co-operation
BULLETIN
In a Senate speech, Senator
Vandenberg, Republican, of
Michigan today called the
Communist coup in Hungary
‘‘a treacherous conquest”
which may call for United Na
tions action. He said the re
placement of Fereno Nagy as
Premier by Leftwinger Lajos
Dinnyes was an overthrow of
an elected government.
By the Associated Press
Senator Vandenberg, Repub
lican, of Michigan told the Sen
ate today that the United States
“cannot wait too much longer"
for Soviet co-operation to make
peace with Germany and estab
lish an “integrated Europe.”
Urging speedy Senate ratification
of peace treaties with Italy, Bul
garia, Hungaria and Romania, the
chairman of the Senate Foreign Re
lations Committee asserted that any
delay may hold up action on agree
ments with Germany and Austria.
“Some day we shall get these other
treaties—even if, unhappily, we are
forced by Circumstance to organize
peace in our own zones alone," he
said in an address opening the
treaty debate.
Declaring that the "way to end
war is to write the peace,” the,
Michigan Senator said that for the
Senate to postpone action on the
Italian and other smaller nation
treaties would lead only to confu
sion.
“I am frank to say that I am
one of those who would have pre
ferred one overall European peace
settlement if it had been po&s/ble,"
he said. "But this is water overj
the dam. I also am one of those j
who believe that there must one;
day be an integrated Europe, eco
nomically and politically, if the pat
tern for tomorrow shall be sound.
This still is possible.
Feeling of Urgency in Senate.
"I further believe that we cannot
wait too much longer for Soviet co
operations and consents in stabiliz
ing Western and Central Europe,
although common consents and co
operations are still infinitely pref
erable.
“The rest of us are entitled to
just as much voluntary freedom of
action on our side of the ‘iron cur
tain’ as the Soviets and their satel
lites have assumed, often coercivelv.
on theirs.”
as tne benate took up the treaties
there was an evident feeling of ur
gency among some members because
of Hungary's fall under Communist
domination. This sprang from the
fact Wiat ratification of the pact
would call for withdrawal of Rus
sian troops from the country.
The State Department announced
yesterday the suspension of $15,-j
000,000 in surplus property credits i
to Hungary "pending clarification1
of developments there.”
Marshall Praises Italians.
By contrast, Secretary of State
Marshall issued a statement simul
taneously praising the Italian peo
ple's "very real attachment for
democracy” and promising con
tinued aid in rebuilding Italy's
economy.
Gen. Marshall wished “every suc
cess” to Italian Prime Minister de
Gasperi and the government he re
organized without Communist rep
resentation.
“We shall continue to give aid,”
he declared, "to the Italian people
who have demonstrated their sin
cere and abiding faith in demo
cratic processes for the preserva
tion of their individual liberties and
basic human rights.”
An American mission is in Italy
now examining the basis on which
a $100,000,000 Export-Import Bank
credit earmarked for that country
can be released. An Italian mission
is here seeking the release of some
$130,000,000 in Italian credits blocked
during the war.
Suspension of the credit to Hun
gary—the so-far unused half of a
$30,000,000 credit extended a few
months ago to the now-ousted Nagy
government — was accompanied by
indications that the United States
soon may file a strong protest with
Russia against the Hungarian de
velopments. The State Department
said the situation is being studied
p.lnspl v
Iran May Get $30,000,000.
The statements on Hungary and
Italy coincided with announcement
also that the United States is pre
pared to grant surplus property
credits up to $30,000,000 to Iran to
enable that oil-rich neighbor of
Russia to refurbish her armed
forces. An agreement is expected
to be signed in a week or two, giv
ing Iran surplus American military
clothing, shoes and "a few" light
tanks and combat planes.
Senator Vandenberg is reported to
hold the view that the Communist
coup in Hungary should speed this1
country’s acceptance of the treaty'
terms in order to get Russian troops
out of that area as soon as possible.
The treaties require withdrawal J
90 days after they come into force,
of all occupation forces except those
needed to maintain communication
lines to Austria.
Doubt Reds Can Keep Grip.
It was said to be the feeling of
Senator Vandenberg and others that
the Communists might not be able
to maintain their grip on the Hun- j
garian government once the Red
Army troops go home.
The Italian treaty, however, ap-‘
peared likely to arouse the most
opposition. Aides said Senator
Bridges, Republican, of New Hamp
shire, is preparing to lead a fight
against its adoption on his return
from New Hampshire, probably to
morrow.
M
Garsson Testifies May
Refused Pay Because
Of 'Moral Obligation'
Says He Offered Money
To Offset 'Burden' on
Former Representative
By Robert K. Walsh
Henry M. Garsson testified to
day he tried to give Andrew J.
May compensation for business
help during the war but that the
former chairman of the House
Military Affairs Committee re
fused it because he felt he had a
“moral obligation’’ to prevent the
Garsson munitions interests
from losing money on a Ken
tucky lumber enterprise.
Garsson said he thought an
“undue burden’’ was being placed
on May in the operation of the
Cumberland Lumber Co. He, there
fore. suggested to May that he ac
cept compensation, Garsson asserted.
But May, he declared, "wanted to
make good" without pay, by helping
the lumber company produce timber
needed by the Garsson munitions
companies.
nenry and Murray Garsson and
May are charged with conspiracy to
defraud the United States. The Gov
ernment declares that the munitions
makers bribed the former Represent
ative with more than $53,000, mostly
in payments through the Cumber
land Lumber Co., in return for favors
he obtained for them. May has
testified that he served without pay
as a Kentucky agent for the Gars
sons in running the lumber company.
Explains Reason for Work.
On the stand in District Court for
the third day, Henry Garsson was
asked directly by his chief counsel,
Charles J. Margiotti, why May did
so much work for the lumber com
pany if he received no pay. Speaking
slowly and deliberately, Garsson
answered:
“From time to time when May
spoke to me in connection with the
Cumberland Lumber Co., I told him
I felt there was an undue burden
being placed on him. He answered
me that he thought he could han
dle it better than I could because
he felt there was a moral obliga
tion on his- part to carry through
until somebody competent could be
put on the- job and the company
could be nut in running ordpr
“He told me he had brought me
into the picture to help me get
lumber, and also to get an industry
for his district. He said he felt he
had to make good on this promise
and until there was normal opera
tion of the company he would do
what he could.
Judge Asks Clarification.
"I said to him perhaps he should
be compensated. He said no, he
didn't want any compensation. He
said again he had a moral obliga
tion and didn’t want to let anybody
lose money on a proposition. He
said he had recommended the site
to us.”
Justice Henry A. Schweinhaut in
terrupted to ask Garsson what May
meant by the expression “make
good.” Justice Schweinhaut asked
if that meant May had any idea of
"making good financially.”
Garsson replied that he did not
consider May’s remark as meaning
any financial guarantee. He ex
plained that he got the impression
(See GARSSON, Page A-6.)
Clark Starts Grand Jury Probe
Of Rail Freight Car Builders
By the Associated Press
Attorney General Clark said
today he has asked a grand jury
to investigate alleged violations
of the antitrust laws in the rail
way freight car building in
dustry.
Mr. Clark said that "certain cor
porations and individuals” are al
leged to have engaged in restraints
of trade and violations of the anti
trust laws, but mentioned no names.
His announcement comes after an
acute freight car shortage in the
country for many months.
The Justice Department said sub
poenas are being issued "for the
production for a District of Colum
bia grand jury of certain docu
ments and records of the freight
car building companies, railway and
car building trade associations and
others."
“This action," Mr. Clark said, "is
the result of investigation by the
Federal Bureau of Investigation of
complaints that railway freight car
building companies hare ^ntered
into agreements with each Other to
fix non-competitive prices for freight j
cars built by them for railroads and j
other purchasers, and have allocated.
prospective railway freight car man-1
ufacturing business among the va-.
rious companies in the Industry;
according to percentage quotas j
assigned to various members of the:
industry.
‘From that investigation it ap
pears that four freight car building
companies have in recent years
secured approximately 80 per cent
of the freight car building business.”
Congressional committees have
conducted lengthy investigations of
the shortage of freight cars.
The testimony of railroad officials1
was to the effect that it was due
largely to wartime suspension of j
building new cars, and the heavy1
strain the war placed on railroad!
rolling stock.
They said that since the war cars;
have been wearing out faster than
they could be replaced.
In view of the continuing car!
(See BOXCARS, Pape A-6.) r'
a CONGRESS
i
'i
!
II
Congress Hearings on Prices
May’Be Ordered, Taft Says
Declares Truman Apparently Has Abandoned
Drive in Favor of Heavy Spending Abroad
By the Associated Press
Senator Taft, Republican, of
Ohio said today President Tru
man and the Democratic admin
istration seem to have aban
doned their campaign to keep
prices down in favor of “heavy!
spending abroad that will keepi
them up."
The Ohio Senator told a reporter
the Senate-House Committee on
the Economic Report, which he
heads, may order public hearings
on the price situation at a meeting
scheduled later in the day.
"We plan to go ahead with an In
vestigation of prices and present
economic conditions, but I have
noticed that there has been little
interest on the part of the adminis
tration on this, question lately,”
Senator Taft said.
"Apparently the President and the
administration are abandoning talk
of keeping prices down in favor of
heavy spending abroad that will keep
them up.”
Senator Taft said it is his view
that loans to other countries for the
purchase of goods here increase the
competition on home markets for
those goods and thus force prices up.
While he supported recent legisla
tion for the $400,000,000 Greek-Turk
ish aid program, the Republican
leader said he did so “reluctantly”
and with the understanding that the
program would be wound up as
quickly as possible.
Mr. Truman, who has been trying
to talk prices down for weeks, has
said nothing on the subject since:
a May 15 news conference when he!
said the country could avoid a de-!
pression if it just uses common sense
and doesn't let greedy people get ;
(.See PRICES, Page A-6.» j
Building Curbs Snag
Conferee Agreement
On Rent Controls
Senate Shouts Approval
Of Own Bill, 'Riddled'
By Amendments
By th« Associated Pres*
Senator Buck, Republican, of
Delaware said today a disagree
ment over restrictions on build
ing may be the chief stumbling
block to final congressional ac
tion on rent controls.
Senator Buck heads. the Senate
conferees who will attempt to re
solve differences between the bill
the Senate passed yesterday and
one approved earlier by the House.
Both extend rent controls beyond
June 30 without a general increase
in ceilings. There are, however, a
[number of differences. The Senate
set the expiration date as February
29. 1948, and the House as Decem
ber 31
(The Senate included in the
bill a provision extending the
life of the District’s rent control
law until February 29. Except
for the new expiration ' date,
Washington’s separate rent con
trol law is left unchanged. The
present expiration date is next
December 31.)
Tobey Calls Bill Futile.
The Senate shouted approval of
its own measure after hearing Chair
man Tobey of the Banking Commit
tee, which sent the bill to the floor,
say it had been so riddled by amend
ments as to be ineffective.
Senator Tobey voted for a substi
tute proposed by Senator Taylor,
Democrat, of Idaho, which would
have extended present controls
without any modification through
June 30, 1948. The Taylor substi
tute was knocked down by a 58-to
16 vote.
Senator Tobey attacked in par
ticular a provision, similar to one
written into the House-approved ■
bill, for permissive increases up to;
(See RENTS, Page A-6.)
Appeal to President
Planned byOpponents
01 Labor Curb Bill
House Democratic Group
Seeks Appointment
To Request Veto
* By the Associoted Press
House Labor Committee Dem
ocrats who are fighting the com-'
promise union curb bill bid today
for an appointment with Presi
dent Truman.
“Of course ” Representative Mad-;
den, Democrat, of Indiana told ai
reporter, “We are going to ask for
a veto.”
Representative Lesinski, Democrat,
of Michigan said the White House
promised to let the group know
something today about seeing Mr.
Truman. Others who want to carry
their appeal to the White House are
Representatives Kelley. Democrat, of
Pennsyh ania; Kennedy, Democrat,
of Massachusetts: Powell, Democrat,
of New York, and Klein. Democrat,
of New York.
May Be Arranged for Thursday.
Mr. Lesinski said the conference
may be arranged for Thursday.
The House is scheduled to act on
the compromise tomorrow, the Sen
ate Thursday, and there is no doubt
of approval.
Intended to check strikes and:
various union activities, the measure j
was whipped together from a bill!
by Chairman Hartley of the House
Labor Committee and another by:
Chairman Taft of the Senate Labor
Committee.
The House passed the Hartley bill
and the Senate the Taft bill by more j
than the two-thirds margins re
quired to override a veto.
Chief Provisions of Bill.
Among other things the compro
mise would:
Let the Government obtain court
orders to stop “national calamity”
strikes, as in the coal or steel
industries for an 80-day mediation
period. t
Ban the closed shop, which allows
employers to hire only union mem
bers.
Permit the National Labor Re
lations Board to block jurisdic
tional strikes or secondary boy
cotts with injunctions.
Mr. Hartley and Senator Taft
said in a statement last night that
“when”—not “if”—the bill becomes
law, it will "go far toward restoring ;
peace to the industrial relations
field.”
Significant parts of the bill, they j
said, “protect individual workers j
against unfair treatment by unions, [
protect employers against abuses!
that almost everyone, including
most union leaders, agree are in
defensible, and protect the public:
against practices that unnecessarily
restrict output of goods, increase
the cost of goods, or imperil the
public health and safety.”
Recommital to Be Sought.
Mr. Lesinski said an attempt will
be made to send the bill back to
the Senate-House Committee that
drafted a compromise.
“But of course we won't get any
where,'* he said.
Representative Hoffman, Repub
lican, of Michigan said he favors
that course, too, for a different
reason. He said the bill doesn’t
(See LABOR, Pa^ A-6.)
Senate Is Ready
To Send Tax BiU
To Truman Today
26,191,000 Will Get
Full 30 Per Cent Cut,
Taft Tells Critics
By J. A. O'Leary
The Senate is ready to send
I the $4,000,000,000-a-year income
j tax cut to the White House today
I by approving the final draft,
j which the House accepted over
i whelmingly late yesterday.
But unless President Truman puts
his signature on the bill or lets it
become law in 10 days without sign
ing it, there is not likely to be any
tax reduction until next year.
Mr. Truman has been urging Con
gress to put debt retirement ahead
of tax reduction, but he is not on
record flatly as saying he would
veto any tax reliel measure.
The 49,000,000 individuals who
would get reductions of from 30 to
10.5 per cent a year, starting July
11, can only wait, therefore, until
j the President announces his de
! cision.
Taft Answers Critics of Bill.
Chairman Taft of the Senate Re
publican Policy Committee declared
today the President "ought not to
veto this bill unless he regards it
as a dangerous threat to the welfare
of the country, which it obviously is
not." Answering Democratic claims
that the bill gives the bulk of relief
to the higher brackets, Senator Taft
said the relief is distributed as fol
lows :
The 30 per cent reduction would
go to 26,191,000 taxpayers; 6,980,000
individuals would get cuts between
20 and 30 per cent, and 16,495,161
would get a 20 per cent cut.
Even if allowance is made for a
decline from the present volume of
business, there would be an $8,000.
000,000 surplus in the Treasury in
the next fiscal year without this tax
cut, Senator Taft asserted, adding,
“so there will be plenty of money
for debt reduction besides the tax
cut.”
The Ohio Senator charged that
"all spenders want to keep the tax
receipts up to $40,000,000,000 in or.
der to maintain a high standard of
Government spending. The quicker
we can revise our sights downward,
the lower we can keep the expendi
tures. I don’t believe the President
can afford to veto this bill, because
it would put him definitely on the
side of high taxes and high ex
penses.”
Senate Lacks Veto Strength.
Although the House vote of 229
to 99 in favor of the final draft
yesterday is well over the two-thirds
that would be required to override
a veto, the Senate does not appear
to have two-thirds.
The bill passed the Senate orig
inally by 52 to 34. Senator George,
Democrat of Georgia, who formerly .
handled tax bills for his party,
voted for the bill last week, but
has announced he would not vote
to override a Truman veto.
By sending a tax cut to the White
House the Republicans are carry
ing out the first pledge they made
when the voters put them back to
control of Congress last fall for the
first. Hrrw> in 1 S uaere
One factor that may make ft
difficult for the President to veto
the bill is the increase in estimated
Treasury receipts from the currenir
tax law since Congress met in Jan
uary. At that- time the adminis
tration predicted a deficit at tho
*lose of the fiscal year, June 30,
Later the White House issued a
statement forecasting a surplus of
$1,250,000,000. Congressional experts
say it probably will be considerably
higher by June 30.
Houghton Notes Change.
This change in the picture was re
flected in House debate yesterday on
the tax bill conference report.
Representative Doughton of North
Carolina, ranking Democrat on the
Ways and Means Committee, ex
plained that, while he opposed the
original House bill, he is going along
with the final conference agreement.
He gave two reasons: First, the
final draft eliminates the retroactive
feature, and second, the estimated
revenue receipts of the Government
for next year are from $2,500,000,000
to $3,000,000,000 higher than they
were when the tax bill was con
sidered originally.
The original House bill carried
the reductions back to last January.
The Senate voted to start the cuts
July L and the conferees accepted
that date. The only other change
was a compromise, narrowing down
the income-range to which a 20 per
cent cut would apply.
The July date means that for the
last half of 1947 the cuts would be
half the annual rate, or from 15 per
cent for the tow-income groups to
5.25 per cent in the top brackets.
Red Balkan Federation
Is Hinted in Making
By the Associated Pres,
BELGRADE, Yugoslavia, June 3.—
Reports circulated here today, with
out confirmation, that a Balkan fed
eration would be formed here soon,
to include Albania and Macedonia
as an autonomous state under Yugo
slav control. Macedonia lies in
Yugoslavia and Greece.
These reports coincided with wide
ly circulated but likewise uncon
firmed rumors that Soviet Foreign
Minister Molotov had arrived in Bel
grade for a visit and that Bul
garian Premier Georgi Dimitrov was
en route.
Officials who were asked about
Molotov-Dimitrov reports said they
had no knowledge of them, but re
fused to deny them outright. A
brilliant red, streamlined railroad
car arrived in the Belgrade railroad
yards and the guard was increased
at the Russian Ambassador’s Villa.
A Balkan federation and an au
tonomous Macedonia have been de
manded several times by Premier
Marshal Tito and other high Balkan
officials in speeches to the pact,
1
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