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Evening star. [volume] (Washington, D.C.) 1854-1972, July 04, 1947, Image 1

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Weather Forecast! ( (Guide for Readers
Clear, high near 82 in afternoon; low near * _ Pag*.
62 tonight. Tomorrow continued sunny and Amusements ....aU Obituary.A-12
*“rmer'- Comics.B-8-9 Radio ..B*9
Editorial .—A-6 society, Clubs....B-3
low, 64, at 6.06 a.m. Yesterday—High, 80, . a-10-11
at 6:32 p.m.; low, 64, at 6:14 a.m. Editorial Articles, A-7 Sports -.
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' _ _J _ f
New York Morkets Closed Todoy. An Associoted Press Newspoper _
95th YEAR. No. 57,680 Phone NA. 5000. & 5 CENTS
r i ... H ■ ■ . 11 '
Truman Assails
Red Refusal to
Join Aid Plan
Failure to Co-operate
Is Declared 'Folly'
In Monticello Address
(Text on Tage a-*.)
By Joseph A. Fox
Star Staff Correspondent
4.—President Truman, calling
for “tolerance and restraint”
among nations to build an en
during peace, today described as
“folly” the refusal of any Euro
pean nation to take part in a
co-operative plan for the conti
nent’s economic recovery.
In a speech that patently was
aimed at the uncompromising at
titude of Russia in the international
scene, although the Soviet was not
mentioned by name, the President
blasted the “organized mistrust"
which he said leads the world's
peoples “away from peace and
unity,” and" demanded an end of
“propaganda attacks on other
Speaking from the broad veranda
of Monticello. home of Thomas
Jefferson, Mr. Truman asserted the
United States is “living up to its
responsibilities for creating the
economic conditions of peace.”
Then—obviously referring to the
breakdown of the preliminary Paris
Conference on Secretary of State
Marshall’s foreign aid proposal, the
President added:
“Yet, certain nations today are
withholding their support of re
construction plans on the ground
that this would mean interference
by some nations in the internal
affairs of others. * * * Surely after
two World Wars nations should
hav the folly of a na
tionalism so extreme as to block
co-operative economic planning
among nations for peaceful recon
raranei urawn.
Mr. Truman drew a deadly parallel
between the democratic ideals
espoused by Jefferson which became
the cornerstone on which the Amer
ican republic grew, and the “iron
curtain" principles which today
dominate the U. S. S. R..
Terming the charter of the United
Nations “that great declaration of
inter-dependence" (among nations)
as compared to the Declaration of
Independence which Jefferson au
thored, the President tersely spelled,
out his views on the principles
which should govern the relation
ship of the nations of the world.
“It is now the duty of all na
tions to converge their policies
toward common goals of peace," he
said. “Of course we cannot expect
all nations, with different histories,
institutions and economic condi
tions, to agree at once upon com
mon ideals and policies. But it is
not too much to expect that all na
tions should create, each within its
own borders, the requisites for the
growth of world-wide democracy."
The President, who came down
from Washington yesterday after
noon for a holiday interlude at
the Blue Ridge foothills heme of
Stanley Woodward, State Depart
ment chief of protocol, spoke at a
Fourth of July observance arranged
by the Thomas Jefferson Memorial
Assocation. The speech, which was
broadcast, W'as delivered after Mr.
Truman had laid a wreath at the
tomb of the third President, who
died on July 4, 1826, just 50 years to
the day after the Declaration of
Independence was promulgated.
iiac4 o 4 ITnSi:oroW v
Afterwards, the President was the
guest of honor at a luncheon at
the Colonhade Club on the campus
of the University of Virginia, which
Jefferson founded. ' His hosts there
were Edward R. Stettinius, former
Secretary of State, now rector of
the university: Colgate W. Darden,
jr., president of the university and
former Governor of the Old Do
minion State, and Gov. Tuck of Vir
In his speech, President Truman
set out four "requisites” for world
peace—and he amplified in each
instance, what these should emocdy.
The first, he said, “is common
adherence to the principles that
governments derive their just pow
ers from the consent of the gov
erned,” a basic principle of the
United Nations.
He added:
"In many countries, however,
progress toward that goal is ex
tremely slow. In other countries,
progress in that direction is non
existent. And in still others, the
course of government is in the
opposite direction.”
“When all governments derive
their just powers from the consent
of the governed, there will be
enduring peace,” he continued.
The second requisite, the Presi
dent said, is “common respect
for human rights.” and he admitted
i See T RUM AN. Page A-4.i
Planes Hunting Survivors
Of Reported Sea Disaster
By the Associated Press
ports of a maritime fire disaster off
the Northern California coast sent
Coast Guard and Army search
planes today on a hunt for survivors.
A State Forest Service lookout
north of Fort Ross on the Sonoma
County coast reported to the Coast
Guard that a vessel, believed to be
a tanker, burned and sank in less
than half an hour late yesterday.
Planes from the South San Fran
cisco Coast Guard base and the
Army search and rescue squadron
at Hamilton Field reached the scene
about 6 p.m. yesterday but found
The Russian tanker Elbrus, en
route to Vladivostok with high test
gasoline loaded at Richmond. Calif.,
put out Wednesday afternoon.
The Elbrus’ position would ap
proximate that at which the burn
ing vessel was reported, which was
north of Fort Ross and between
point Reyes and Point Arena north
of San Francisco.
Replies of 22 Nations Awaited
On Bids to Paris Aid Parley
Greece and Denmark Accept Invitations;
French Expect Conference to Be Brief
By th* Associated Press
PARIS, July 4.—French offi
cials predicted today that the
forthcoming European confer
ence on the Marshall recoverj
plan would be brief, as France
and Britain awaited replies from
22 nations invited to join them
in the meeting here a week from
The French Foreign Ministry sen!
the joint invitations last night to
Paris embassies and foreign minis
tries abroad of every sizable Euro
pean country except the Soviet
Union and Spain. The conference
will work from British-French
proposals. ,
Soviet Foreign Minister Molotov
turned down these proposals Wed
nesday in the breakup of a three
power Paris meeting, but the Brit
ish-French offer was left open to
"all European states,” except Spain
so long as she remained under Gen.
Greece and Denmark announced
today they would take part in the
Premier Knud Kristensen of Den
Top Czech Officials
To Go to Moscow on
Crisis in Aid Plan
Premier and Jan Masaryk
Are Expected to Seek
Parley With Molotov
By the Associated Press
PRAGUE, July 4.—Czechoslo
vakia’s Communist Premiei
Klement Gottwald and Foreign
Minister Jan Masaryk decided
suddenly today to leave Prague
tonight for Moscow.
Undoubtedly they hope to confer
with Soviet Foreign Minister
Molotov, or perhaps Prime Minister
Stalin, on the crucial economic posi
tion created here by Russian rejec
tion of the Marshall "Aid-Europe'
They will go by train through
Warsaw, accompanied that far by
Polish Premier Josef Cyrankiewic2
and nine Polish ministers, whc
today signed the last link in a Slav
nations network ’of cultural and
trade pacts which could form the
basis for a separate Eastern
European economy.
The Russian rejection! of the
Marshall program for unified
European economy.
The Russian rejection of the
Marshall program for unified Euro
pean economic recovery has been
the day - long topic of earnest
private conversation by members
of Parliament here.
Czechs Have 2-Year Plan.
Plainly, as the trip of the leader!
to Moscow underscored, the Czechs
are unable to see in which cam*
they would fall or whether they
could continue with one foot in each
There has been no announcement
here whether the government re
ceived the Freneh-British invita
tion to attend a Paris conferencs
July 12 with Russia out.
Czechoslovakia is working out nei
economic recovery under a Russian
styled two-year plan of intensive na
tionalization. It would be a hare
decision for her to overlook Mr
Molotov's stand that countries par
ticipating in the Marshall prograir
would find their sovereignty sacri
ficed to Western big power will.
Rude Pravo, Prague’s Communist
daily, described the new Paris bic
as "an invitation to participate
in a Western bloc.”
At the same time, however
Czechoslovakia's economy urgently
needs Western markets, Westerr
raw material and Western finan
cial credit. She has credit now
only with Britain, Canada and Ar
gentina. Her trade alliances with
her Eastern Slavic neighbors art
strong—but none of the countries
has foreign credit or cash markets
or much exportable goods.
Network of Pacts Completed.
The cultural and economic unity
agreements signed by Poland anc
Czechoslovakia today completed ar
; interlocking network of Easterr
European pacts.
The other pacts were completec
more than a year ago—friendship
and mutual assistance agreement
between Russia and Czechoslovakia
Yugoslavia and Poland, signed sep
arately between each, and cultura
and economic treaties b e t w e e i
Czechoslovakia and Poland.
No authoritative spokesman woulc
Anderson Promises
U. S. Food for Reich
By the Associated Press
BERLIN, July 4.—Secretary o
Agriculture Anderson said today hi
had given American authorities
here a guarantee of shipments o
at least 300,000 tons of food monthl;
j from the United States to the com
j bined British-American zones o
I Germany.
He estimated at a news con
ference that this would insure ful
fillment of the current official ra
tion of 1,550 calories daily for th
normal consumer—a ration whicl
has not been met for several month!
Joining in the same conferencf
Secretary of Commerce Harrimai
said that, despite failure of th
Paris conference, it remained th
(American objective to win as man
(nations as possible to co-operativ
i effort for economic reconstruction.
Mr. Harriman said the specifi
purpose of his visit to German:
| was to “see what can be done t
raise manufacturing production am
| exports to bring Germany back t
| self-sufficiency and reduce the tre
| mendous cost of occupation to th
United States and British taxpayer.
The two cabinet ministers plannei
to leave tonight on a tour of th
combined zones, which will tak
them to Stuttgart tomorrow am
then to the Ruhr.
mark told of his nations intention
in a speech to thousands of Danish
Americans celebrating July 4 in the
rebuilt National Park in Jutland.
He termed the preparations initi
ated under the Marshall proposal
“a peaceful offensive.”
“Can anybody doubt that Den
mark, like all Scandinavian coun
tries, will gladly accept the plans
for European economic co-opera
tion?” Mr. Kristensen remarked.
Greece also accepted the invita
tion by Britain and Prance to the
Paris Conference. It was announced
in Athens that she would be rep
resented by Foreign Minister
Demetrius Helmis.
Officials of countries under Soviet
influence generally refrained from
committing themselves on the plan
for international co-operation in
economic recovery.
Because of the duplicated invi
! tation, the replies may be given
| either here or in foreign capitals.
I Diplomatic quarters said that in the
1 usual case the foreign minister
likely would reply to the French
envoy in his own capital, so that
Tsee MARSHALL-PLAN, Page A-5.)
Nations Must Unite
For Peace or Perish,
Eisenhower Warns
Union of North and South.
Sets Example for World,
He Says at Vicksburg
By the Associated, Press
VICKSBURG, Miss.. July 4.—
Gen. Eisenhower declared here
today that unless the United
States helps plan a structure of
world peace humanity “may suf
1 fer the Golgotha of a third world
The Army chief of staff, principal
speaker at the third annual car
nival of the Confederacy, pointed
to the uniting of the North and
South after the Civil War as a
basis for international co-operation
to prevent such a conflict.
“Either the nations work together
for the common good,” Gen. Eisen
hower said, “or one by one they will
perish, slowly in withering decay
or quickly under the impact of total
war, as is more likely the way of
the future.
“Industrial development and
atomic science have left no limits
to global conflict, either in scope or
destructive result. Many, neverthe
less, disparage world unity as vi
sionary and impractical because
national loyalties, tend to stifle in
ternattonal action.”
Pointing to “the possibility of
insane attacks on those who work
for peace,” Gen. Eisenhower de
clared the relative securi^- that
resides in strength—military, moral
and economic—dare not be ignored.
“Until all others are ready, with
us, to substitute the council table
for the battlefield, we must parallel
and support our efforts toward
world stability with a unified pur
pose to guard ourselves well and
to maintain an effective strength
that compels respect for our peace
ful intent.” he said.
“But this cannot be our final
{goal,” he continued. “Fear of war
{and its consequences impedes spir
itual and material progress and
at the least compels vast diversions
of our toil and sweat to unproduc
tive processes.”
If the American system of co
operation is to be extended to world
wide practice for “the salvation
of us all, then it is incumbent upon
us to make the system work at
home,” Gen. Eisenhower added.
Senate Backs Bigger Role
For Small Businessmen
By the Associated Press
I A resolution calling on the Presi
{dent and his aides to give small
} businessmen a greater voice in
! policy making was passed without
dissent bv the Senate late yesterday.
The resolution, by Senator Brooks,
! Republican, of Illinois urges the
| President and the cabinet “to ac
cord the small businessmen of
America representation on * * *
1 Government agencies,” especially
> policy-making bodies.
Peron's Wife Visits Dunns
ROME. July 4 (/P).—Mrs. Juan D
Peron, wife of Argentina's President
1 who is now visiting in Italy, called
today at the Villa Taverna residence
of American Ambassador and Mrs.
James C. Dunn and wished them
a “happy Fourth of July.”
By the Associated Press
' SEATTLE, July 4.—Senator Cain
.1 Republican, of Washington returnei
: i to his home State yesterday to fine
' himself confronted with threats o
' a recall movement and pickets pa
■ trolling in front of a building when
he was holding a steel hearing.
; Upward of CO pickets, includini
housewives, children and babies, pa
[ trolled in front of the Chamber o
' Commerce Building in a demonstra
tion against his sponsorship of i
' bill to abolish the Federal Publi
' Housing Authority by December 1
, 11948, and put the housing project
a! up for sale.
i\ “Out in the Rain With Cain,
: j “Cain Anti-Housing Bill Mean
Foxholes for Every Veteran” an<
; j "America Needs More Homes. No
• | Less," read some of the pickets
, ] banners.
i| Vancouver, Washington, housing
>i project residents proposed a recal
- movement against Senator Cain, t
; "freshman" who has been in th<
’ Senate since last January. At i
1 mass meeting, Democratic Stat<
; Chairman Earl S. Coe promised hi!
? party's support.
! Senator Cain told reporters th<
bill, introduced in Congress by Sem
Weather Ideal
As D.C. Marks
Fourth of July
Throngs Leave City
As Others Arrive
For Sightseeing
Flags flew under sunny skies
throughout Washington today,
and neighborhood observances
were in progress, as the Capital
marked Independence Day.
Thousands of District residents
had left the city to spend the holi
day week end elsewhere, but other
thousands had arrived by train,
plane, bus and automobile to pass
the historic anniversary in sight
president Truman was in unar
lottesville, Va. He was scheduled
to speak at 1:30 p.m. high lighting
an ooservance at Monticello, home
of Thomas Jefferson.
The Weather Bureau promised
clear weather throughout the day
and tonight and the forecaster said
it would continue sunny tomorrow.
A high temperature of about 82
degrees was predicted for this after
noon. The mercury will drop to
about 62 during the night, but to
morrow will be somewhat warmer
than today, the forecaster added.
300,000 Expected.
The local program will reach its
climax tonight on the Washington
Monument Grounds, where 300,000
persons are expected to assemble
for patriotic addresses, pageantry,
music and a fireworks display her
alded as the largest ever offered
here on July 4.
There will be speeches by Ad
miral Chester W. Nimitz, chief of
naval operations, and Senator
Dworshak, Republican, of Idaho.
There also will be recitations of
great American poems with a mu
sical background, a Navy tableau
based on incidents in the career of
John Paul Jones and musical inter
ludes by the Navy, Marine and Army
! Air Forces Bands.
The program will begin at 1
o'clock with a half-hour of recorded
music. The fireworks will start at
Police Inspector Arthur E. Miller,
in charge of traffic, asked that per
sons having official car parking
stickers enter the reserved area from
E street at either Fifteenth or
Seventeenth street.
Hundreds of homes and business
places were displaying flags today,
in accordance with a request of the
The largest flag array, however,
will be presented during the Monu
ment Grounds celebration, when
more than 300 are massed.
An all-dav celebration was in
progress in the Takoma Park area.
Arranged by organizations on both
sides of the District iine. it began
this morning with a parade which
had as its motif, “The United
Nations—an Instrument of Peace."
Floats Portray U. N. Aims.
John J. Bruff, parade marshal,
and Mayor Oliver W. Youngblood
of Takoma Park headed the column.
iimc Af thfl TTnilori Kafinnc wjpro
portrayed on floats. Virtually all
veteran, civic and business groups
of the community participated.
Maj. Gen. Orval R Cook, chief
of the Procurement Division of the
Army, was principal speaker at ex
ercises on the north Takoma Munic
ipal playground . Councilman John
T. Parkerson presided.
The invocation was by the Rev.
James F. King, pastor of Our Lady
of Sorrows Catholic Church. Music
was by the Washington Missionary
College Band.
Athletic events for children were
to be held at 3 p.m. at the Takoma
Playground and a softball game wras
to follow at 5 p.m. at the Takoma
Recreation Center.
There will be a concert by the
Maritime Commission Band at the
recreation center at 8:30 o'clock
tonight, and a fireworks show will be
j presented at 9 o’clock,
j General Chairman Willard D.
j Normandy said the community ob
; servance would end at 10 o’clock
(See JULY FOURTH, Page A-5.)
Late News
Daly Wins British Open
HOYLAKE, England (/P>.—
Fred Daly, 35-year-old Belfast
pro, replaced Sam Snead as
the British Open golf cham
pion today when his 293
score withstood the challenges
of Frank Stranahan of Toledo
and Reg Horne of London,
each of whom posted 294.
I (Earlier Story on Sports Page)
Picketing and Talk of Recall
Confront Cain on Return Home
a tor Kussen, Democrat, oi ueorgia
and himself, would “do away with
[i the Federal Public Housing Au
thority, which has outlived its use
‘j "It will offer housing, with a
, | priority for veterans, at prices of
' $3,500 to $4,000 with a 10 per cent
r | down payment and 25 years in
> | which to complete payment. You
'|carft tell me there is any great
‘ number of working young couples
' who can’t carry a deal like that.”
‘I -
:! Senator Cain is in charge of the
• new District tax program in the
’ISenate and a member of the joint
committee which drafted that pro
’ gram.
ij The Cain-Russell bill would trans
fer all Federal Public Housing Au
thority functions to the Federal
Works Agency and require sale of
! all permanent war housing owned
bv FPHA for cash by December 31,
1948. '
In the current disposal program,
present tenants, whether veteran
or nonveteran, have first priority.
Under the Cain-Russell bill, vet
erans would be given first priority.
Several thousand units of per
manent war housing are located
in the District area.
Midwest Coal Contract
Expected in Time to
Avert Mine Shutdown
Terms to Be Like Those
In Northern Appalachian
And Steel Agreements
By James Y. Newton
Federal labor officials said to
day they expected soft coal op
erators of the Midwest to reach
contract agreement with John
L. Lewis’ United Mine Workers
in time to prevent a shutdown
of their mines next Tuesday.
The terms under which coal inter
ests of Indiana and Illinois are
expected to sign are the same as
those given the miners by Northern
Appalachian and steel company
mines. Those include the precedent
shattering 45 cents-an-hour increase
in the basic pay of the miners and
a welfare fund supported by pay
ments of 10 cents per ton on all coal
Meanwhile, directors of the South
ern Coal Producers Association met
here this morning to decide what
they will do in the face of a strike
threat. Operators in the group,
representing about 25 per cent of
the Nation’s production, have been
most critical of the big steel interests
for what they describe as a “sell out”
of the coal industry in granting Mr.
Lewis virtually all of his top contract
Immediate Acceptance Doubted.
Just what the Southern operators
will do was not known definitely,
although some quarters expressed
doubt that they would accept the
high peace terms immediately.
In that event, it was held virtu
ally certain that Southern mines
will remain closed after the mine
workers’ current 10-day vacation
ends Monday midnight. All of the
country's soft coal mines now are
closed while the workers are on offi
cial leave.
Precise terms of the new agree
ment between Mr. Lewis and oper
ators of “captive” and Northern
commercial mines are expected to be
made public tomorrow. The Union’s
Policy Committee will meet tomor
row afternoon and ratification of the
pact is considered certain.
Agreement for One Year.
In addition to boosting the basic
wage of the miners from the present
$1.18% an hour to a fraction over
$1.63 and supplying the welfare fund
support that will bring in nearly
$60,000,000 a year, it was understood
tVin naur o frroflmonf nrill riir» for nnP
The miners will receive $13.05 for
the eight-hour day underground.
Actually they will work only 6 Vi
hours, since they receive a half
hour paid lunch period and travel
time to and from the working face
I of the average mine is about an
! hour.
The terms also included extension
of the Federal mine safety code
embodied in the Government agree
ment between Mr. Lewis and Sec
retary of the Interior Krug.
Mr. Lewis agreed to abandon hist
demand for six paid holidays and
I for extra pay for Saturday and
Sunday work.
In Pittsburgh the Western Penn
sylvania Coal Operators’ Association
! said today it had ‘‘ratified the
broad aspects of the tentative pro
posal” submitted by Mr. Lewis.
‘‘The proposal is being reduced to
writing, which probably will be
completed by tomorrow and we’ll
then take another look at it,” As
sociation Secretary Harry A. Suter
Army Plane With 6 Aboard
Missing in Storm Area
By the Associated Press
4.—Between 30 and 40 Army, Navy
and Coast Guard aircraft were
i scheduled to join the search today
for an Army C-54 cargo plane with
six crewmen aboard, missing since
late yesterday while en route from
Bermuda to Morrison Army Air
Field here.
! The plane, which carried no
passengers, left Kindley Field, Ber
muda, at 10:40 a.m. yesterday and
was to have arrived here at 4:14 p.m.
The big four-engined aircraft’s
route was directly over a storm off
the North Carolina Capes, which
had kept small craft in port all day
and caused the hurricane warning
service In Miami to issue its first
storm advisory of the 1947 season.
_- —
Coming Events Cast Their Shadows Before
India Freedom Bill
Offered in Commons
On U. S. Anniversary
By the Associated Press
LONDON. July 4.—A bill to
give freedom to the people of
India was introduced in the
House of Commons today—171
years to the day since Britain's
American colonies declared
themselves independent.
Prime Minister Attlee pre
sented the bill, which was given
a formal first reading. It pro
vides for the setting up of two
independent Indian states, Hin
dustan and Pakistan, which
temporarily at least will be
members of the British Com
Conservatives are not oppos
ing the bill, and speedy approval
by; both Houses of Parliament
is asured.
mi Homes uesiroyea
As Fires Sweep 8,500
Acres in California
200 Homeless in Town;
Flames Continue Toward
Recreational Area
(Picture on Page A-5.)
By the Associated Press
LOS ANGELES, July 4.—Two
brush fires, the worst this sea
son, destroyed 50 houses and left
200 homeless today in the San
Fernando Valley community of
Chatsworth Lake Manor and
raged uncontrolled over 8,500
mountainous acres in San Diego
Firefighters from Los Angeles City
and County and Ventura County
pronounced the Chatsworth fire un
der control, but crews were assigned
to all-night duty. The settlement
has a population of 2,500.
Police and sheriff's deputies also
patrolled the area to help refugees
find shelter and food, prevent loot
ing and control traffic. The Red
Cross used a schoolhouse as a cen
ter for registering homeless, a can
teen, dormitory and emergency hos
pital. Casualties were few, however,
except for minor burns, smoke and
Homes of 1,000 Threatened.
The fire threatened the homes of
about 1,000 residents of Chatsworth
Lake Manor and nearby sections,
burned fiercely in Box Canyon, pene
trated to the edge of Chatsworth
reservoir and flared up the slopes
of the Santa Susanna Mountains,
covering some 6,000 acres in all.
Forest Service men, Seabees from
Port Hueneme and Mexican na
tional citrus grove workers, plus
about 300 volunteer civilians aided
the regular firemen. Heavy trucks
carried water up winding roads to
(See FIRES, Page^Sj
Senators Vote to Add
600 Million for Army
By the Associated Press
A Senate Appropriations subcom
mittee has voted to add $599,125,376
to the House-approved Army sup
ply bill for the fiscal year which be
gan July 1.
Chairman Gurney told newsmen
today he expects the full committee
to approve the big increase early
next week.
He added that most of the addi
tional money would go to the air
forces for “more modern planes
and equipment.”
In round, figures the subcommit
tee recommended an outlay for the
War Department of $6,160,000,009, or
slightly above President Truman's
budget recommendations of about
The House had voted to give the
department $5,280,000,000 cash and
authority to make contracts totaling
$280,000,000. The Senate group add
ed $335,636,376 cash and $263,490,
000 of contract authority.
Senator Gurney said that part oi
the increases recommended by the
subcommittee would be offset by a
cut in unspent appropriations for
1946 and prior years. He said the
House had slashed these by $1,100,
000,000 while the Senate group voted
to cut off an additional $439,138,201.
Both Houses Expect
To Pass New Tax Cut
Measure Next Week
Republican Leaders See
5 Billions Available for
Debt Payment This Year
By J. A. O'Leary
Republican leaders predicted
today that passage of their nett
January 1 tax cut for 49,000,00(
individuals still would enable th(
Treasury to pay off more thar
$5,000,000,000 of the nationa
debt in this fiscal year.
The bill, approved by the Housi
Ways and Means Committee lab
yesterday, 18 to 6, is expected to pas
both the House and Senate nex
It provides the same rate cut;
President Truman vetoed before
ranging from 30 per cent in the lov
brackets to 10.5 at the top, but thi
effective date has been postponec
six months.
Although the previous veto wa:
sustained in the House by a two
vote margin, GOP strategists be
lieve they will have two-thirdS't<
override another veto in bot*
branches, unless Senate opponetftt
take advantage of the liberal de
bating rules in that body to fili
buster in the closing days of tin
Little Delay Expected.
The present plan is to adjourr
Congress July 26. A definite ad
journment date always makes ii
easier to kill a bill in the last
minute rush. On the other hand
if two-thirds favor the tax bil
they could easily postpone adjourn
ment. It is doubtful, also, whethei
many members would join in tryinf
to prevent a vote on a tax-reductior
hiil •
Congressional tax experts said to
day that even on the basis of Presi
dent Trumans $37,500,000,000 ex
penditure budget for the fiscal yeai
which began July 1, the new taj
bill would leave $2,400,000,000 foi
debt retirement. They figure tha
wh'en all the appropriation bills hav<
passed the economy drive will shov
a saving of at least $3,000,000,000 it
the budget, making $5,400,000,00<
available for the debt.
GOP spokesmen are counting or
this argument to meet one of thi
chief objections the administratioi
'raised against the first tax-cut bill
! President Truman would still havi
| another peg left on which to hani
a second veto, namely, that thi
! unchanged rate structure provide
:the wrong kind of tax reduction.
Two Amendments Defeated.
Democrats supporting the admin
; istration made two vain attempts ii
! the Ways and Means Committei
yesterday to change the shape of thi
bill. If they had succeeded the ad
ministration could have embrace!
the new bill, claiming the Republi
cans had been forced to write a mori
reasonable -tax plan.
Representative Forand, Democrat
of Rhode Island, moved to raise thi
personal exemption of each taxpaye:
and dependent from $500 to $700, ai
a substitute for the percentage rati
cuts. This was beaten, 16 to 7.
Representative Dingell, Democrat
of Michigan, moved to repeal all o
; the 1943 wartime increases in excisi
taxes, Including the tax on trans
portation of property, as a substituti
for the income tax rate cuts. Thii
was defeated, 19 to 5.
Representative Knutson, Republi
1 can, of Minnesota, father of the ta:
reduction bill, also took steps yes
terday to meet one source of opposi
tion to the measure, by promising
action at the next session on thi
community property problem In re
lation to income taxes.
At present only nine States hav
community property laws, permit
ting married couples to divide thei
incomes for tax purposes, which re
duces their combined tax loac
Some members of Congress ar
threatening to fight the new tax bi
unless something is done to giv
husbands and wives in the rest c
the country the same advantagi
(See TAXES, Page~A~-5j
No Late Editions
The Star observes Independ
ence Day today by eliminating
the late afternoon editions.
Subscribers to the Night Final
Edition will receive the Regu
lar Home Edition.
Cogswell Studies
D. C. Rent Boost
Due to Tax Rise
Consideration Based
On Reassessment and
Increase in Rate
By Robert J. Lewis
Real Estate Editor of The Star
Robert F. Cogswell, District
Xent control administrator, to
day said he will consider possible
over-all rent Increases here In
view of recently increased tax
Mr. Cogswell said his study would
be based on the recent reassessment
of residential real estate and a
i boost in the tax rate, together with
I a forthcoming 25 per cent boost In
the water rate.
The new assessment, effective
July 1, raises by a blanket 20 per
cent the assessed value of houses
(but not the land on which they
are locatecj). The tax rate was in
creased on the same date from $1.75
to $2 per $100 valuation. Legisla
tion is pending to authorize a 25
per cent increase in the water rate.
Reply to Question.
Mr. Cogswell's statement was in
reply to a question as to whether
the District Rent Control Admin
istration planned to allow landlords
to be reimbursed for the three addi
tional costs.
He said he would defer active
consideration of the matter, how
ever, until legislation to extend
District rent control is finally en
acted, owing to the possibility that
voluntary rent increases might be
allowed here by Congress along the
same lines as provided in the ex
tension of national rent control.
“As soon as final action is taken
on the pending bill to extend the
rent act, this office will confer with
the assessor to ascertain just how
all-inclusive the 20 per cent in
cease in assessment is,” he said.
Meanwhile, it was learned a rent
hearing July 21 will be the first
1 at which the tax rate boost and
higher assessment will be used as
1 arguments for a rent increase.
Stephen G. Ingham, attorney for
S. D. Moses, owner of an 86-unit
apartment building at 1314 Massa
chusetts avenue N.W., said he would
cite these points at the hearing,
together with higher maintenance
and operating costs, and the higher
water rate, if it becomes law by
that time. A 16 per cent boost is
being sought for the apartments,
whose rents range from $42.50 to
Bill Before Senate Unit.
A HtJl .to extend the District rent
control act to March 31, 1948—one
i month longer than the national
I HfW fcrovidesyis before the Senate
> District Committee.
Under this bill, which has passed
the House, no voluntary increases
would be permitted in the District.
The National Rent Control Act, ef
fective everywhere except in the
District, provides that a landlord
may raise rents 15 per cent, if the
, tenant agrees, in exchange for a
lease continuing to December 31,
The Washington Real Estate
Board has never gone on record
with a request that Congress per
mit 15 per cent voluntary increase#
The local board, however, some
time ago requested a 10 per cent
increase on rents existing prior to
January 1, 1942, and smaller in
• creases ranging from 8 to 2 per cent
on dwellings whose rent ceilings
■ were set subsequent to that date.
Operating Costs Theory.
The request for lower percentaga
. increases on dwellings rented after
, 1942 was on the theory that ade
i quate consideration was given by
the District rent administration to
higher wartime construction and
I operating costs when it fixed those
| ceilings.
Now, however, in view of in
’ creased municipal costs, and a con
. sequent heavier burden on real
! estate, it is understood the Senate
; District Committee may be asked
to allow a voluntary 15 per cent in
crease here on the same basis as
is provided by the national rent
control act.
1 This would have the effect of
; (See RENT, Page A-5.)
Sunday Reading . . .
John Nance Garner is back
in the news—not for anything
he has said lately, but for his
flat refusal to talk or write
for publication. The former
Vice President probably could
have set his own price for his
sulphurous memoirs. But he
answered eager publishers by
making a bonfire of practi
J cally every scrap of corre
j spondence bearing on his 46
years of public life. Bascom
} Timmons, veteran Washing
; ton correspondent, is just
■ back from visiting the taciturn
Texan at his Uvalde ranch,
; and he tells in the Sunday
! Editorial Section how his host
became a literary arsonist.
In the same supplement,
; Richard L. Stokes outlines
’ America’s ambitious and hu
. mane program for rehabilita
tion of devastated Greece,
e and Garnett D. Horner takes
l a look at the careful training
t the United States now gives
f its fledgling diplomats before
- sending them off to foreign
These and other features
on domestic and world affairs,
plus special coverage of the
new books, gardening, amuse
ments, sports, society, art,
music, etc., round out the
usual thorough and accurate
news content of
Gttft &unhuy &tar

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