Evening star. [volume], December 19, 1947, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Weather Forecast! . #---“
Sunny, with highest temperature in low 40s WUlQe TOr R68d6rS
today. Clear, colder tonight; lowest about 25 * Page. Page.
In city, 20 in suburbs. Tomorrow cloudy, con- Amusements ...A-26 Obituary _A-12
tinued cold. (Full report on page A-2.) Comics-C-10-U Radio _C-ll
Midnight .36 6 a.m. ...32 Noon.38 Editorial ..A-10 Society, Clubs-B-S
2 a.m. ...34 8 a.m. ...31 1p.m. .. 39 Editor'1 Articles, A-ll Sports .C-l-S
4a.m. ...33 10a.m. ...33 2pm. *40 Finance...A-19 Where to Go-B-13
_ '_ Lost and Found..A-3 Woman’s Page —C-4
-Lo’e Yo,l< Mo,llet!-*-19_:_ 1 -
96th 'YEAR. Phone NA. 5000. City Homs Delivery. Dally and Sunday, ST CU'VTS
____ii.ZO a Month. When 5 Sundaya. 91.30. ® Vv -EiiA A Q
MEYERS AND LAMARRE INDICTED IN PERJURY
General Named
On Six Counts;
Warrants Issued
Former War Plant
President Faces
Three Charges
By Robert K. Walsh
Maj. Gen. Bennett E. Meyers,
retired Air Force purchasing
deputy chief, was indicted by a
District grand jury this after
noon on charges of perjury and
subornation of perjury.
Bleriot H. Lamarre, former presi
c ?nt of a Dayton company from
which Gen. Meyers reportedly drew
$150,000 in profits, was indicted on
charges of perjury.'
Each of the two indictments con
tained three counts—that is, six
against Gen. Meyers and three
against Lamarre. The penalty
under the District code for perjury
as well as subornation of perjury
is from 2 to 10 years’ imprisonment.
At the request of United States
Attorney George Morris Fay, Justice
David A. Pine immediately issued
bench warrants for the arrest of the
two defendants. Mr. Fay said, how
ever, that Gen. Meyers and Lamarre
would not be arraigned until after
the first of the year.
Hearings Began Nov. 25.
The grand jury of 13 men and
10 women was the regular Oc
tober panel. It began hearing
testimony in the Meyers case No
vember 25, three days after the close
of Senate War Investigating Sub
committee hearings.
It met the day after Air Secretary
Symington announced the $549
monthly disability retirement pen
sion of the former Air Force pro
curement officer had been stopped
and all his decoration awards re
scinded. Possible court martial of
Gen. Meyers awaits the outcome of
civil court actions, Mr. Symington
said.
Although the jury held sessions
on the Meyers matter for a total of
only six days since November 25, it
convened almost daily on routine
District cases. It also returned in
dictments December 5 charging 10
Hollywood writers, producers and
directors with contempt of Con
gress.
Lamarres Among Witnesses.
Principal witnesses against Gen.
Meyers at the grand jury proceed
; ings were Mr. and Mrs. Lamarre,
Thomas E. Readnower and Robert
i L. Pine, all of Dayton. Ohio.
Lamarre, a key witness at the
Senate subcommittee inquiry, tes
tified Gen. Meyers was the real
owner of the Aviation Electric
Corp., a Dayton concern that had
more than $1,050,000 in war sub
contracts with several aircraft man
ufacturing companies.
Lamarre was president of the
Aviation Electric Corp. He declared
he drew a salary of less than $3,000
and kicked back to Gen. Meyers
the bulk of a recorded "executive
salary” of $31,000. He said Gen.
Meyers drew more than $150,000 in
profits and other benefits, such as
an automobile and a $10,000 Wash
ington apartment decorating job,
from company funds.
Meyers Denied Charges.
Gen. Meyers, at the Senate sub
committee hearings, not only denied
this but explained his sole connec
tion with the company was to set up
i Lamarre in business and to lend
| money which, he said, was repaid.
| He asserted he did this for Lamarre
because Mrs, Lamarre had been his
‘‘girl friend.” This brought an angry
; denial from Lamarre who called
Gen. Meyers a “snake.”
j Readnower, brother of Mrs. La
j marre, described himself as a "dum
my” vice president of the Dayton
| company. He said his recorded sal
! ary ranged from $15,000 to $18,600,
| even while he was in the Army, but
he turned over practically all of it
to Gen. Meyers.
Both Lamarre and Readnower in
formed the Senate subcommittee
Gen. Meyers asked them to tell
false stories about his association
with the Dayton concern. Lamarre
said Gen. Meyers came to his home
last summer “and sat in my favor
ite armchair” to dictate a letter in
which Lamarre was to state that
company checks to Gen. Meyers
were for repayment of loans.
The witness added that on the
(See MEYERSTPage A^12.)
Truman Asks $6,800,000,000,
To Launch Marshall Plan April 1,
Sets Total at $17,000,000,000
Congress Is Told
Of Importance in
Promoting Peace
(Partial Text of President's Message
on Page A-4.)
By Joseph A. Fox
President Truman today asked
Congress for $6,800,000,000 tc
launch the Marshall plan by
April 1 and a total commit
ment of $17,000,000,000 to carry
through to June 30, 1952, and
get the 270,000,000 people oi
Western Europe on their feet.
Outlining the vast economic res
toration program for 16 nations and
Western Germany against a back
ground of ever-growing tension with
Russia, the President declared this
country faces a “grave and signifi
cant decision" in the promotion of
peace by this effort, and that its
course will “determine in large part
whether the free nations of the
world can look forward with hope
to a peaceful and prosperous future
as independent states or whether
they must live in poverty and in fear
of selfish totalitarian aggression.”
If Europe falls under totalitarian
control, the President warned, “it
might well compel us to modify our
own economic system and to forgo
for the sake of our own security, the
enjoyment of many of our freedoms
and privileges.”
Communist Opposition Cited.
Bluntly he asserted that “we must
not be blind to the fact that the
Communists have announced deter
mined opposition to any effort to
help Europe get back on its feet.”
The President recommended that
the projected aid be made through
both grants and loans, "depending
primarily upon the capacity of each
country to make repayments, and
the effect of additional international
debt upon the accomplishment of
genuine recovery.” He did not sug
gest any breakdown as between out
right gifts and loans but stressed
that the entire program “is well
within our capacity to undertake.”
Mr. Truman said that aid for
China would be taken up later.
New Organization Proposed.
To administer the program, Presi
dent Truman proposed creation of
an Economic Co-operation Adminis
tration, headed by a $20,000-yearly
administrator, who would, however,
be subject to the Secretary of State
on foreign policy matters. A spe
cial “’United States representative”
who would be, in effect, a roving
ambassador, to exercise general co
ordinating powers, also would be
provided. This post would pay $25,
000. Along with the message, the
President sent Congress the draft
of legislation to set up this admin
istrative machinery and a 241-page
analysis prepared by several Gov
ernment agencies.
The $6,800,000,000 appropriation
sought at the outset by the President
would be designed to finance the
program for 15 months. After that,
appropriations would be made an
nually, and while Mr. Truman ex
plained that an estimate of prospec
tive needs is difficult., the "best”
figure is $10,200,000,000 for the last
three years.
Unpredictable Factors in Cost.
"Obviously.” he explained, "price
changes, weather and crop condi
tions and other unpredictable fac
tors will influence the over-all cost
of our aid. Nevertheless, the in
herent nature of this enterprise and
the long-range planning necessary
to put it into effect on both sides
of the Atlantic require that this
Government indicate its plans for
the duration and the general mag
nitude of the program without com
mitting itself to specific amounts in
future years.”
Depending chiefly on whether
prices go up or down. Government
experts estimate that the actual cost
to the country might dip as low as
>$15,111,000.000 or climb as high as
$17,758,000,000, not including $822.
' 000,000 for Western Germany which
the administration is asking sepa
rately for the first 15 months.
Help from the International
Bank, private financing, other West
(See TRUMAN, Page A-4.)
Romania and Yugoslavia
Sign Mutual Aid Treaty
ly th# Associated Press
% BUCHAREST, Dec. 19.—Marshal
Tito announced today the signing
of a mutual assistance past between
Romania and Yugoslavia.
Last week Tito signed a mutual
aid pact with Hungary and earlier
a similar agreement with Bulgaria.
A similar pact was also signed by
Bulgaria and Albania.
In his announcement Tito said:
“We signed this alliance in order
to check the warmongers. This
theaty is of international importance
and will help democratic develop
ments and peaceful reconstruction
of our peoples."
Tito declared that the pact created
a peace front against “warmongers,"
and would foil “imperialist plans.”
Trumans to Get Mascot
CHICAGO, Dec. 19 (IP).—'-Feller,"
a five-weeks-old silver buff cocker
spaniel, will be sent by air freight
from Chicago tomorrow to Presi
dent Truman. The puppy is the
gift of Mr. and Mrs. Peter J. Mars
den of Galena, 111., friends of the
Trumans, and is intended as a
White House mascot.
Senate Raises
Stopgap Funds
To 568 Million
The Senate quickly approved
today a substantial increase in
the House allotment for stopgap
foreign aid from the $509,000,000
allowed by the House to $568,
000,000, with $18,000,000 ear
marked for China.
Senators became involved in sharp
debate, however, over a clause placed
in the billion-dollar supplemental
j appropriation bill last night to halt
j the dismantling of non-military
plants in the American-British oc
j cupation zone of Germany.
In addition to the stopgap aid, the
supplemental supply bill also carries
the $490,000,600 needed by the Army
I to operate the occupied zones of
i Germany, Japan and Korea.
Chairman Bridges of the Sen
ate Appropriations Committee de
] nounced the State Department's
handling of the dismantling prob
I lem in Germany, as he defended the
j action of his committee in trying to
jstop it.
Senator Bridges charged that j
| some of the plants being dismantled
j are falling into the hands of Rus
sian satellites.
The New Hampshire Senator said
Congress could not explain to the
American people the logic of spend
ing money on foreign aid to check
(See FOREIGN AID, Page A-12.)
Truman and Cabinet
Welcome Marshall,
Back From London
President Pays Tribute
To Secretary's Work
At Big Four Parley
By Garnett D. Horner
President Truman welcomed Sec
retary of State Marshall home from
the London Conference of Big Four
Foreign Ministers today, telling him,
“I think you did a good job.”
Gen. Marshall arrived at National
Airport from London in the Presi
dent's plane, the Sacred Cow, at
9:03 a.m. to be greeted by the Chief
Executive and all other eight mem
bers of the cabinet.
“I am sorry I could not bring
back profitable results,” Gen. Mar
shall told reporters who asked him
for comment on failure of the Lon
don Conference to make progress
toward agreement on peace settle
ments with Germany and Austria.
Gen. Marshall added that he would
"explain various aspects of the mat
ter on the radio tonight.”
He is to address the Nation at 10
p.m. His report is expected to lay
the blame for breakdown of the con
ference on Russia.
The President told Gen. Marshall
that he wanted him to “get at least
a week’s rest” after the arduous
work in London. It was just four
weeks and one day ago that Gen.
Marshall left for the London meet
ing.
Gen. Marshall said he thought
“we had a very strong delegation”
at London. He added that the con
ference involved “a lot of hard work
by all.”
Speaking of his delegation ad
visors, Gen. Marshall said "I felt
they were fully competent in judg
ment and wealth of information to
protect the interests of the United
States.”
In addition to the President and
(See MARSHALL, Page A-12.)
Policemen and Ambulance
!
Attendants Deliver Baby
Two policemen and two ambulance
attendants took doctors’ roles early
today and delivered a baby when
they arrived too late to take Mrs.
Catherine Manyette, 36, from her
basement apartment at 48 I street
N.W. to a hospital.
The infant, an 8-pound girl, and
the mother were then removed to
Gallinger Hospital, where both are
reported doing nicely.
The substitute doctors were Police
Pvts. Ralph C. McGuffln and Wil
liam A. Dize, of the first precinct,
and James O’Donnell, ambulance
driver, and H. Laster, first aid corps
man attached to the ambulance. The
scout car responded on the emer
gency call for an ambulance and ar
rived in time to give the ambulance
men a hand with proceedings.
Eichelberger Back
In Tokyo, Glad to Be
Away From Pentagon
By th» Associated Press
TOKYO. Dec. 19—U. Gen.
Robert L. Eichelberger returned
to his 8th Army command to
day after a three-month as
signment in Washington and
commented: "I’m so glad to
be baclc I could yell.”
"That Pentagon,” he ex
claimed. referring to the colos
sal National Defense Building,
"when you’ve got that you’ve
got something.”
House Approves
Move to Name
Grain Traders
Resolution Asked
By Anderson Goes
To White House
BULLETIN
The House today passed
without amendment the Sen
ate resolution to authorize
Secretary of Agriculture An
derson to make public the
names of traders on the com
modity exchanges. The reso
lution now goes to the White
House.
By J. A. O'Leary
The House will decide today
whether the names of specu
lators on the commodity ex
changes are to be made public
in the near future.
The Senate passed a resolution
late yesterday, with the support of
both political parties, to give Secre
tary of Agriculture Anderson the
change in law he contends is neces
sary to enable him to reveal the list.
But v.'ith Congress Set to start Its
Christmas recess tonight, the resolu
tion may fall into parliamentary pit
falls in the House. Senator Tydings,
Democrat, of Maryland, hinted
strongly that a pigeonhole awaits
the resolution, when he taunted Sen
ate Republicans yesterday to give
dim some assurance the House will
act.
Senator Tobey, Republican, of New
Hampshire, replied that Senators
should do what they think proper
ind let the House decide its own
course of action.
Work on Lists Started.
Secretary Anderson, leaving a cabi
net meeting at the White House this
morning, told reporters his depart
ment is working on the lists of spec
ulators.
He could not say how long it
would take to get them in shape for
publication. It is necessary, he ex
plained, to check identifications of
all those named to protect the in
nocent in cases where speculators
bear the same names as well-known
persons who are not speculating.
If the House, which set up a spe
cial committee of its own yesterday
to investigate the commodity mar
kets, sidetracks the publicity amend
ment to existing law, it will not end
Republican efforts to turn the spot
light on the names of traders. The
GOP began prying into the subject
after President Truman and other
administration officials mentioned
commodity trading as one of the
factors in the high price situation.
May Subpoena Brokers’ Books.
Chairman Bridges of the Senate
Appropriations Committee, and Sen
ator Knowland, Republican, of Cali
fornia, served notice today they will
try a different way of getting the
names if the House turns down the
resolution to authorize Mr. Ander
son to make public the list.
Both Senators said that, if neces
sary, they will ask the Senate Ap
propriations Committee to subpoena
the books of individual brokers.
"That's the long way to do it
but we’ll take it if we have to,'
said Senator Knowland.
Mr. Anderson won his demand foi
a change in the law, removing any
legal doubt of his right to reveal
names, when Republican members
of the Senate Appropriations Com
mittee failed to see eye to eye on
the legal question in a hectic two
and-a-half-hour session yesterday.
11 to 8 Vote on Resolution.
The Secretary had been served
with a committee subpoena direct
ing him to produce the list, and he
made it clear that if the committee
insisted, he would not refuse tc
comply. He served notice, however
that if the committee forced his
hand, he would give the names tc
the public and not the committee
alone.
Although there were 10 Repub
licans and 9 Democrats present
"(See SPECULATION, Page A-6J~
Taft Inflation Bill
Voted by House
Under Gag Rule
Bailor Is 281 to 73;
Unchanged Measure
Goes to President
BULLETIN
The House today passed and
sent to President Truman
without change the Senate
approved Republican anti-in
flation bill. The final vote was
281 to 73.
Congressional approval of the
Republican anti-inflation bill by
nightfall was virtually assured
today when the House voted to
consider the Senate-approved
measure immediately under pro
cedure restricting amendments
and limiting debate to one hour.
Meeting two hours earlier than
usual, the House adopted the “gag”
rule by a vote of 203 to 143. The vote
followed party lines, with only four
Republicans deserting the party to
line up with the Democrats against
the rule. They were Representatives
Lemke of North Dakota, O'Konski of
Wisconsin, Smith of Ohio, and
Stockman of Oregon.
Under the procedure adopted/ the
only amendments allowed will be
those backed by the Banking Com
mittee, which has no amendments
to offer.
Democrats Outnumbered.
Democrats were given the oppor
tunity of trying to alter the bill
through a motion to recommit it.
While they planned to try to tack on
some amendments similar to those
batted down yesterday when the
Senate approved the bill, 77 to 10,
they conceded privately that they
were outnumbered aryi that the bill
would be passed before Congress ad
journs tonight until January 6.
It was evident from debate on the
rule that passage of the measure is
a foregone conclusion since only a
majority approval was required.
The Wolcott bill, containing three
of the measures in the Senate ver
sion sponsored by Senator Taft of
Ohio, was turned down on Monday
by the House when it failed to win
a two-thirds vote necessary under
a stricter gag rule.
Democrats and Republicans alike
devoted preliminary discussion to
politics until Representative Smith,
Deqaocrat, of Virginia reminded
them that the country expects Con
gress to do something effective about
the cost of living.
"We should declare a moratorium
on politics for a week or 10 days,”
the Virginian said, “and sit down
here just as good Americans.”
Sees Little in Taft Bill.
Mr. Smith called the Taft bill
“a piece of shadow boxing” that
“doesn't do anything.” He said “the
profit motive is too deeply in
grained” to expect to submerge it
with “frothy talk.”
Chairman Allen - of the Rules
Committee defended the "gag” pro
cedure and recalled that Democrats,
when they ran the House, resorted
to it on numerous occasions.
Both Mr. Allen and Majority
Leader Halleck claimed that only
under such procedure could legisla
tion be enacted at this session of
Congress.
“It is this or nothing,” Mr. Hal
leck said.
Containing several of the less
controversial phases of President
Truman’s 10-point fight-inflation
program, but lacking any authority
to reimpose consumer rationing or
price and wage controls, the bill
was snatched from oblivion in the
Senate yesterday by some of the
fastest legislative footwork in years.
Thirty-two Senate Democrats
voted for the bill after having failed
! in their drive to amend it to fol
low more closely along the lines of
Mr. Truman’s program.
Republicans who voted against
the bill were Senators Langer of
! North Dakota, Morse of Oregon and
i Wilson of Iowa. They were joined
| by three Democrats, Senators Cha
jvez of New Mexico, Connally of
! Texas. Hill of Alabama, Magnuson
I (See ECONOMIC, Page A-12^
U. S. Embassy Loses $50,000
Through Revaluation of Ruble
•y th« Associated Press
MOSCOW, Dec. 19.—The Ameri
can Embassy estimated today it lost
about $50,000 through Russia’s re
valuation of the ruble and a spokes
man indicated it might take special
action by Congress to keep the em
bassy going on its present basis.
The embassy was caught in a
snare because of the State Depart
ment's own rules, a spokesman said
Theoretically, under department
regulations, an embassy officer could
be held responsible for the entire
$50,000 loss, he said, explaining:
The State Department rules say
no embassy could keep more than
$100 on hand, and that an officer will
be responsible for any loss incurred
in violation of the edict. But the
embassy, of necessity, had to keep
| thousands of dollars in cash on
' hand.
The Embassy could not keep a
bank account. The controller gen
eral does not allow American rep
resentatives abroad to pay the costs
of such accounts, the spokesman
added.
When revaluation came the Em
bassy still had a large amount of
■ the old ruble currency on hand, de
j spite frantic attempts to get rid of
it as fast as possible by paying up
bills.
Russia is paying off only one new
ruble for 10 old rubles presented for
cash exchange.
The Embassy would have fared
I better had it been permitted to keep
i a bank account. The bank accounts
1 (See RUBLES, Page A-12.)
2 Robbers Get $8,500 Payroll
In New Printing Plant Holdup
Money Grabbed as Controller Enters Door;
Police Hunt On, All D. C. Exits Covered
BULLETIN
Mack Wilson Fierst, convict
ed of the $9,400 payroll holdup
at the Charles H. Tompkins Co.
in 1939 and sought in a recent
armed holdup, has been ident
ified by William Webster and
Allen Sidney as one of the two
men who committed the Darby
Printing Co. payroll robbery
today, police announced this
afternoon.
TWO MEN STABBED, two beaten
in three other holdups. Story on
page B-l.
A Darby Printing Co. official,
carrying an $8,500 payroll, re
ported to police today that two
armed men held him up and
grabbed money bags immediate
ly after he entered the com
pany’s plant at Twenty-fourth
and Douglas streets N.E. at
11:30 a.m.
As the two men fled in a pea-green
car, police squad cars throughout
the entire metropolitan area were
alerted. Within half an hour, all
were at emergency posts, covering
bridges and other exits from the
city with road blocks.
The company official was William
Webster, 29, assistant controller, who
was bringing the payroll for me
chanical department employes from
a downtown bank.
At the time of the holdup the
company was distributing (3,000 in
Christmas bonus checks on the sec
ond floor of the plant. The bandits
did not venture above the first floor
and no one else saw the holdup, ac
:ording to Otis Johnson, president of
the company.
Allen Sidney, Mr. Webster's chauf
feur, was sitting at the wheel of Mr.
Webster’s car when he spotted two
armed men carrying the money bags
from the plant.
Mr. Sidney, 38, colored, told police
he immediately took off in pursuit
of the men. He followed them for
about six blocks to Rhode Island
(See PAYROLL. Page A-6.)
Anti-Communist Unit
Votes to Split With
French Labor Group
Resolution Calls on All
Minority Followers to
Quit Posts in CGT
By th# Associated Press *
PARIS, Dec. 19.—Representa
tives of the Anti-Communist
minority of the powerful General
Confederation of Labor (CGT)
voted overwhelmingly today to
split with the parent organiza
tion.
The delegates were believed to
represent approximately 1,250,000
workers of the Communist-domi
nated CGT’s 6,000,000 adherents.
The break was made, a commu
nique said, ‘‘to free the French syn
dical movement from all political
control ”
The resolution, calling on all fol
lowers of the minority tendency to
resign their posts in the CGT, was
approved by a vote of 156 to 1, with
two absentions.
The minority group, known as the
“Workers’ Force,” directed its fol
lowers to prepare for a national con
gress to set up a “true confederal
organization for all workers,” and
appealed to all French workers to
support the new movement “for the
total emancipation of the working
class.”
“The national conference of the
Workers’ Force renews its demand
for the independence of the labor
movement with regard to all politi
cal parties and all governments of
no matter what tendency,” a state
ment said.
The minority charged that the
CGT majority, “for reasons foreign
to syndicalism, did not hesitate to
hurl the working class into an ad
venture which could only destroy
syndical unity” during the recent
strike movement.
$1.10-a-Pound Butter
Predicted in Boston
By the Associated Press
BOSTON, Dec. 19.—Marketmen
predict the retail price of butter in
the Boston area will reach $1.10 a
pound by Christmas, despite reports
of a Federal investigation of rising
costs of the commodity.
An Agriculture Department spokes
man said wholesale prices yesterday
ranged from 86 to 97 cents a pound
—a new high for the area. Market
men reported the prices in retail
stores probably will advance at least
8 cents a pound over the wholesale
figure by the week end.
Chain stores said they could main
tain their prices of 89 to 93 cents a
pound only as long as the reserve
supply lasts.
A
Jews Attack Village,
Killing 10 Arabs and
Wounding 5 Others
Hagana Troops Reported
To Have Struck Against
Volunteers' Hideout
4. By th« Auociat»d Pr*n
JERUSALEM, Dec. 19.—Ten
Arabs, including 5 children, were
reported killed and 5 others were
injured by bombs and gunfire
last night in a Jewish attack on
the village of Khisas, in Upper
Galilee.
An official report said two cars of
Jews drove into the village in dark
ness, threw a number of bombs and
opened fire. Two houses were de
stroyed.
A police patrol found seven bodies
in the ruins of one of the houses and
three in the other.
Two Syrians and two Lebanese
Arabs were listed among the cas
ualties.
Hagana Made Attack.
Jewish sources said Hagana, the
Jewish underground militia, made
the attack because the village was
being used as a hideout for infil
trating volunteers of Fawzi Kaukjis
Arab “Save Palestine" Army. Arab
sources have said this army was
moving 2,000 guerrilla fighters to
join Palestine Arab forces near
Nablus.
The village of Khisas is only 2
miles from the point where the
Palestine, Syrian and Lebanese bor
ders meet. It is near the route be
tween Jerusalem and Damascus,
where Arab forces have been re
ported training for the fight against
the partition of Palestine.
Other violence developed else
where in the Holy Land.
The death toll since the United
(See PALESTINE, Page A-6.)
North Carolina High Court
Upholds Closed Shop Ban
By tht Associated Press
RALEIGH, N. C., Dec. 19.—The
North Carolina Supreme Court to
day upheld the constitutionality of
a 1947 law barring the closed shop
in this State.
It affirmed the convictions of two
defendants in Buncombe County
Superior Court where test cases
were instituted.
Associate Justice A. A. P. Sewell,
who wrote the opinion in each case,
held the power of the State to pre
vent the consummation of private
contracts, "found to be injurious to
the public welfare,” could not be
denied.
-k
Knutson Tax Cut Bill
Facing Prospect of
Presidential Veto
Truman Renews Stand
Against Reduction in
Income Levies Now
By tha Associated Press
Another White House road
block hove into sight today for
the Republican attempt to slash
taxes $5,600,000,000 a year.
Assertions by Chairman Knutsor
of the House Ways and Means Com
mittee that his bill is “veto proof
were in sharp contrast to a renewa
of President Truman’s stand agains
any tax reduction now.
The implication was obvious tha
the tax measure might meet th<
same fate as two others passed at
the last regular session of Congress
Mr. Truman vetoed both of them.
He said then that debt deductior
must ■ come first and anyway the
bills gave too much of the tax reliel
to the wealthy.
Belief in Lower Brackets.
Mr. Knutson annnrpntlv hnspri his
"veto-proof’ label for the new ver
sion on the contention that it would
give 77 per cent of the total tax
reduction to persons with taxable
incomes under $4,000 and only 23
per cent to those making more.
But at the President’s news con
ference yesterday, a reporter asked
whether reports that the Govern
ment will have a $7,000,000,000 sur
plus for the current fiscal year end
ing June 30 would justify a tax cut.
Mr. Truman said no.
The President refused, however,
to say definitely whether he would
oppose any tax out next year. He
said his State of the Union mes
sage to Congress next month will
answer that.
Mr. Knutson introduced the new
bill on his own, but said most of
his Republican colleagues were in
general agreement with its provi
sions. It is expected to be an early
order of business at the session be
ginning in January.
Wolcott Favors Tax Cut.
Without referring directly to Mr.
Knutson's bill, Chairman Wolcott of
the House Banking Committee told
reporters "tax reduction that will
bring out larger production would
be the best thing we could do to
stop inflation.’’
Senate Republicans already have
called for tax relief as part of their
long-range, anti-inflation program.
Mr. Truman, in his vetoes of the
previous bills, said tax reduction
would aggravate inflation by making
more money available to bid up the
prices of scarce goods.
As the lines formed for the new
battle, Mr. Knutson had this to say .
"The country is ripe for tax re
duction, which is long overdue. The
• See TAXES, Page A-6J
Margaret Truman to Give
Baltimore Recital Tonight
By th» Associated Press
BALTIMORE, Dec. 19.—Miss Mar
garet Truman was resting this
morning in her suite at the Hotel
Emerson after a full round of re
ceptions, interviews and official visits
since her arrival at noon yesterday.
She indicated she would rehearse
this afternoon, then return to the
hotel to relax before her concert
tonight at the Lyric Theater.
Her activities yesterday included
a luncheon given by her hosts, the
Shrine's Boumi Temple, a visit to
Mayor D’Alesandro's office and a
press conference for reporters from
the city’s high school newspapers.
Some of the questions fired at her
by the young correspondents dis
closed that Miss Truman isn’t a
jitterbug—she "doesn't know how”—
and that as a piano player, her
father “does pretty well.”
Asked if the President Ijkes swing
music, his daughter replied:
“I don’t think he even knows
what it is. He’s strictly long
haired."
Sunday Reading .. .
The recent report of the
President’s Commission on
Higher Education suggests a
number of challenging ideas to
the American public. John
Dale Russell, a division chief
of the United States Office of
| Education, offers an interest
: ing evaluation of the report
in Sunday’s Editorial Section.
Russia’s depreciation of the
ruble, and the wording of the
decree announcing the action,
sent the theorists scurrying to
their typewriters. One of
them, Samuel Lubell, writes
(also in the Editorial Section)
that the Kremlin possibly is
heading for a general relaxa
tion an its rawhide policy.
A picture story of a Rich
mond collection of imperial
Russian heirlooms high lights
the attractive Pictorial Maga
zine. Special pages and col
umns are devoted to review of
the new books, amusements,
art, music, sports, etc. All of
this is in addition to the usual
thorough and accurate news
content of
&tttihaa fctar
' (where
M LETTER, TOM ?jj
»DOESN'T
/HAT I l|
y THIS Ig
HERT S NO 1
RmNG^jj