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On Chance of Passing Excess Profits Levy By th* Associated Press A top administration leader said today the Senate is likely to add a $3 billion-plus corporation excess profits tax to the $5 billion tax boosting bill. But Chairman George of the Senate Finance Committee told newsmen he does not agree. Sen ate tax debate—set to begin to morrow—may be a slam-bang af fair. In a late move that may attract new support Senator O’Mahoney, Democrat, of Wyoming softened his excess-profits proposal to make the top tax 85 per cent, instead of 100, on highest corporation earnings that exceed “normal” profits. O Mahoney Explains Aim. His aim. he said, was “to remove any danger that the excess profits tax might adversely affect the Incentives to produce.” He would make the tax effec tive last July 1. If the excess profits levy car ries, the bill is expected to yield $8.5 billion or more a year, in stead of the $5 billion President Truman asked. A bill substantially in line with Mr. Truman’s recommendations was approved unanimously yes terday by the Senate Finance Committee, and goes to the Senate floor with bipartisan backing. It would put about $3 billion of new taxes on individual incomes, an other $1.5 billion on corporations, and would gather other millions by plugging tax law loopholes. Pinned to Present Bill. Along with his softening of the proposed excess-profits rates, Sen ator O’Mahoney predicted again that the levy would be pinned to the $5 billion bill, as a means of preventing “profiteering.” But Senator George has said the bill will pass without an excess profits tax “or there will be no bifi at all.” He said an excess profits levy can be enacted later, effective January 1, 1951. He told reporters he does not want to be a party to hasty action that might wreck some businesses. Mr. Truman also has suggested it might be better to act later on an excess profits levy. A top administration leader, who asked that his name not be used, told newsmen he believes the O’Mahoney proposal, or some thing like it, will pass now. He said the Senate might be swept by the same psychology that moved it to vote broader economc controls than the President asked. Some Want Limits. Some Senators are saying that If prices and wages are to be con trolled, then profits should be limited. Under his new proposal, Senator O’Mahoney would define as “nor mal profits” 75 per cent of a cor poration’s average earfttngs in the years 1947-1949, plus $25,000 (it would be plus $50,000 if the cor U. N. Mediator Fails To End Kashmir Dispute ty lh« Associated Press KARACHI. Pakistan, Aug. 23. —U. N. Mediator Sir Owen Dixon said yesterday his efforts to end the dispute between India and Pakistan over Kashmir have end ed in stalemate. Just before leaving for London en route to report to the U. N. Security Council, he said in a 1,500-word statement that he felt there was nothing more he could do to end the dispute. Kashmir is divided between oc cupying troops of the two coun tries holding their lines under a y. N. cease-fire 'order. There have been no open conflicts since the end of 1948, according to Sir Owen. Korea War Sergeant Gets Arlington Rites Infantry Sergt. Ernest K. Tur ner, 35, of Berwick. Pa., was to be buried today in Arlington Na tional Cemetery, the first enlisted casualty of the Korean war to rest in that cemetery. For the historic occasion, the military prepared a ceremony of full honors. Among officials sched uled to attend were Secretary of the Army Pace, Gen. Wade H. Haislip, Army vice chief of staff; Maj. Gen. Thomas W. Herren, commanding officer of the Mili tary District of Washington; Sen ators Martin, Republican, and Myers, Democrat, of Pennsylvania, and Sae Sun Kim, Charge d’Af faires of the Korean Embassy. Several members of 8ergt. Turner’s family also were to at tend, as were delegations from Pennsylvania veterans’ groups. Sergt. Turner, an Army veteran of eight years, was woqpded in action in Korea July 24 and four days later in a Tokyo hos pital. ♦ He also saw 256 days of combat in World War H with the 142d Infantry, 36th Division. His dec orations include the Soldiers’ Medal, Silver Star, Bronze Star and Presidential Unit Citation. A brother, Staff Sergt. Day G. Turner, was awarded posthumous ly the Medal of Honor, highest military award for bravery, while serving with the 80th Division in Europe during World War II. An other brother, Robert, was wound ed in action in World War n. poration commenced business after September 1, 1945). Then he would apply a tax of 65 per cent on profits between 1 and 15 per cent above the base period; plus 75 per cent on profits between 15 and 25 per cent above the base, and plus 85 per cent of profits more than 25 per cent above the base. During World War n the ex cess profits rate was 85.5 per cent on cojpoartion income above the average of 1936-1939. Some cor porations’ taxes were determined on the basis of invested capital. Cost of Living Reaches 2-Year Peak, but Food Shows Slight Decline By Malcolm Lamborne, Jr. Government economists, faced with the highest cost-of-living index in nearly two years, today were , banking on continuation ol a seasonal decline in many food items to offset soaring prices in other consumer goods. They based their optimism on a downward trend noted between mid-July and mid-August. During July, however, the Na tion’s cost of living increased 1.4 per cent over mid-June to the highest level in nearly two years Sharp increases, many of them after the lighting began in Korea June 25, in prices of meats and fresh fruits and vegetables were blamed for a July 15 price index of 172.5 per cent of the 1935-1939 level. It was the highest since October, 1948. GM Workers Get Increase. For 335,000 General Motors workers, last night’s price re port means a 5-cent hourly wage increase. The company, under its wage contract, raises the hourly rate or lowers it, depending on per centage point change in the consumer price index. A GM spokesman said another 76,000 salaried employes would re ceive ah additional $25 each for the next three months starting September 1. At the same time he said the company contemplates no price changes. Walter P. Reuther, president of the UAW, termed GM’s deci sion not to raise prices “encourag ing.” In a telegram to President Tru man and congressional leaders demanding anti-inflationary con trols, he said the GM decision “clearly demonstrates that cur rent profit margins are sufficiently high . . " Mr. Reuther urged that Con gress clamp on price controls and an excess profit tax “to protect the living standards of the people from inflation and profiteering.” Further Increases Seen. Warning that retail prices would rise still more, he declared: “Inflationary price grabs are weakening the American economy at a time when its strength and stability are crucial.” “General Motors workers and their union are not being deceived by the 5 cents increase.” he said. “It will be paid in the wooden nickels of inflation and will not enable GM workers to buy any more of the necessities of life for themselves and their families.” The report of the Bureau of Labor Statistics recalled that food prices on July 31 were slightly lower on the average than the July 15 prices. Then, it added that a prelimi nary tabulation of prices made last week indicates retail food prices declined slightly from mid July to mid-August. 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Opan Thursday Kvanings Until S:30 __ __ _ Clesad Saturdays During August t V 11 i L" iU Another 11 Try Channel Swim; Belgian Planning Round Trip By th* Associated Press DOVER, England, Aug. 23.— Two more swimmers beaded across the English Channel in op posite directions-r-just a few hours after seven men and two women churned their way through the strait in a mass crossing. Two other Britain-bound mara thoners—Frenchman Georges Al fonsi and Dutchman Joseph van Waal—gave up less than half way to their goal. The England-to-France swim mer was 18-year-old Philip Mick man, English swimmer, who took off at 7:45 a.m. (2:45 a.m. EDT) from just west of Dover Harbor to try for his second Channel conquest and his first crossing in that direction. He began his try exactly a year from the time he conquered the France-to-England route in 23 hours and 48 minutes. Others of today’s starters be gan at Cap Gris Nez, France. One of them—the Belgian, Fer nand du Moulin—was so confi dent he planned to swim back again after a 15-minute rest. Moulin, who crossed last year in 21 hours, 48 minutes, tossed off a bottle of champagne and entered the water at 2:36 a.m. (9:36 p.m. EDT yesterday). and housefumishings would be offset by lower food prices indi cated since mid-July. Washington’s cost of living was not checked between mid-June and mid-July. However, the agency released figures showing food prices in that period had ad vanced 1.4 per cent, also to the highest point since October, 1948. BLS said meat, poultry and fish prices here rose 1.9 per cent; eggs, up 12.6 per cent: coffee, up 5.3 per cent: fats and oils, up 3 per cent: fresh fruits and vegetables, up 3.9 per cent, and cereals and bak ery products, up three-tenths of 1 per cent. Nationally, BLS gave these fig ures for the 30-day period ending July 15: Food prices, up 2.6 per cent to He was preceded by Alfonsi, 36 year-old oil refinery engineer, and van Waal. An atack of appendicitis ended Alfonsi’s attempt one hour after he started. He was pulled out of the water with a rope and was still doubled up in pain when he was brought back to his hotel at Wissant, France. Scene Vastly Different. The scene on the French beach this morning was vastly different from yesterday, when 24 swim mers set out in a race won in record time by 41-year-old Has san Abd-el Rehim, 217-pound Egyptian strongman. There were only a few spectators and report ers on the beach. Rehim won yesterday's race with a closing spurt that over took Roger Le Morvan of France just off the English shore. Rehim s time for the swim was 10 hours 53 minutes. The old record of 11 hours 5 minutes was set by Georges Michel of France in 1926. Both Rehim and the first wom an to finish—Eileen Fenton, 21 year-old English school teacher— won prizes of $2,800 each, given by the London Daily Mail, which sponsored the race. a point where they are 44 per cent higher than fn June, 1946; clothing, down two-tenths of 1 per cent; housefumishings, up six-tenths of 1 per cent; fuel, electricity and refrigeration, up six-tenths of 1 per cent; residen tial rents, four-tenths of 1 per cent, and miscellaneous goods and services, up six-tenths of 1 per cent. Meanwhile, the Agriculture De partment predicted wholesale prices to farmers for all milk will rise seasonally throughout the rest of this year. Its monthly dairy report said this will result primarily from higher fat content of milk, an increased proportion of milk used in class 1 outlets, and scheduled increases in prices of milk for fluid consumption. Burma Claims Capture Of Key Rebel Town By the Associated Press RANGOON, Burma, Aug. 23.— The Burmese government an nounced yesterday its naval units recaptured the river town Mya Gyi, seat of the Rebel Karen government in the rice-growing Irrawaddy Delta. It lies 85 miles southwest of Rangoon. A communique added that naval units attacked two nearby Karen strongholds where fierce fighting tbrought heavy losses to the Karen tribesmen. New England caught nearly a billion pounds of commercial fish in >949. i Hook Quits Claims Post As Senate Denies Approval ly the Associated Prats Frank E. Hook, former House member from Michigan, yesterday resigned the Federal job to which the Senate had refused to confirm: him—member of the Motor Car riers Claims Commission. Mr. Hook had served on the commission under a recess ap pointment made October 27, 1949, by President Truman. Mr. Hook said he could not afford to work without pay. He was one of four men the Senate recently refused in a single day to confirm for jobs to which Mr. Truman had named them. | Myrna Loy's Divorce From Markey Granted ■y th« Associated Pratt MEXICO CITY. Aug. 23, Myrna Loy’s attorney said yeste day her divorce from Produo Gene Markey has been grant* in Cuernavaca. Francisco Lopez Figueroa sa Judge Alfonso Roquini signed tl decree August 15 on the groun* of mental cruelty. The laws * Morelos State permit either pari to a non-contested divorce to fli suit immediately on arrival an then leave. In this case, bot Miss Loy and Markey named at tomeys to act as their legal rep resentatives before the court. SAVE TIME! ' , SAVE MOW! AIR COACH » TO SPOKANE PORTLAND SEATTLE via regular service (Martin liner) to Detroit NORTHWEST AIRLINES Ticket Office: 1510 H Street, N. W. Phone: STERLING 9000 or your Travel Agent __> is the Studebaker Champion! AS SHOWN STUDEBAKER CHAMPION 6-PASSENGER, 2-DOOR CUSTOM SEDAN Delivered in Washington, D. G. 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