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Passage of Tax Bill
Before Next Week Is Seen as Unlikely ■y th* Assoc la t«d Prsn The administration’s $4,508, 000,000 tax bill was tangled up with other priority legislation In the Senate today, and prospects that it would pass before next week were extremely slim. Party floor leaders expressed be lief the measure could be disposed of with a late session tonight. But Chairman George of the Finance Committee, in charge of the measure, predicted to newsmen a final vote won’t come until the middle of next week. This would delay the legislation beyond the week-end deadline set by the Treasury if forms are to be prepared in time to make proposed increases in individual income taxes effective October 1 as the bill provides. Will Recess Today. The Senate plans to recess after today's session over the Labor Day week end. The House, which still must act on the tax bill, plans only two perfunctory meetings next week. When it quit work last night, the Senate was near an agreement to vote at 1 p.m. today on the! controversial excess profits tax j proposals which have been block ing the legislation for a week. But other Senators said they planned to bring up a compromise home-front mobilization bill and a presidential veto, both of which I would have priority. The voting j agreement was then withdrawn. The first vote, which may comej late today, would be on the pro posal of Senators George and Jniil likin. Republican, of Colorado to put off action on an excess profits levy until next January, but with the rates enacted then made retro active to October 1 or July 1, 1950. This was offered yesterday as a substitute1 for the amendment of Senators O’Mahoney, Democrat, of Wyoming and Connally, Democrat, of Texas, calling for action now on an excess profits tax, effective as of last July 1. Neither side would predict how the vote would go. Senator O’Mahoney refused to j accept the compromise. He said if the Korean war ends before the new Congress starts or soon there after it would be virtually impos sible to enact a retroactive tax. Would Raise $4 Billion. The O’Mahoney-Connally pro posal would lEdpose an 85 per cent tax on anything over 80 per cent of a corporatkm’s average profits for the four years 1JM6-49, plus $10,000. It is ^designed to raise another $4 billion in revenue. The bill already contains an estimated $4,508,000,000 worth ofj new taxes, primarily on incomes of individuals and corporations. The George compromise would direct the Senate and House tax committees to, nrepgJ5B Xh .excess profits tax fog^lntrodytion'-earjly In the new congressiSpS §|| ( | Senator Pepper, Democrat, of Florida, meanwhile, ’ revived the; late President Roosevelt’s wartime; suggestion—never acted' upon—: that all individual net' incomes be' TAKING UP AN OLD TASK—A long-neglected gap (above, center) in the series of paintings be neath the Capitol’s dome soon will be filled if Congress grants funds asked by President Truman today. Started in 1877 by the Italian artist Constantine Brumidi, the ornamental frieze 58 feet above the floor of the rotunda was left unfinished because the artist died and no agreement could be reached on the design for the last three panels. The task requires mixing the paint with the plaster, and $20,000 is being sought, with the artist yet to be selected. The panels will be designed to represent the Civil War, Spanish-American W ar and the birth of aviation in the United States. Panels visible here are (left) the discovery of gold in California and (right) the landing of Co lumbus. _ held to $25,000 a year. Pepper did not propose to amend the tax bill, but he said: “There is no American in the safety of home, thousands of miles behind the battlefields, who can’t survive the order of living on $25, 000 a year net, after payment of taxes.” Meanwhile, Treasury officials said taxpayers can’t save anything on their 1950 income tax bills by speeding up their income receipts. They blasted notions apparently held in some quarters that the higher individual income tax rates in the bill now near passage will apply only to income received after October 1. Some confusion has arisen from the fact that the scheduled boost in tax withholding rate§ will be effective only on wages and sal aries paid after October 1—that is, in 1950’s last quarter. Officials said, however, the October 1 date for application of new withholding rates will not matter on final settlement of 1950 income tax due next March 15. The new tax bill, they said, provides for one-fourth of the tax increase to apply to all income received during 1950, without re gard to how much of the income total is received in 1950's last quarter and how much is received in earlier quarters. 86.000 'Homes' Burned PORTLAND, Oreg. — Timber consumed by forest fires m- the Unffifti States every year Igbuld be i§-t«#700 million if pro|$ksed, Sawing that much timber would earn workers about $40 million. Forest fires in this country an lually destroy enough lumber for 16.000 one-family dwellings. Atlantic Defense (Continued From First Page.) . - that the situation in Korea, where Red tanks rushed steadily down tfie peninsula, has not caused a reappraisal of the Army tank program. Rather they call it an “acceleration” of the program. It will include the purchase of heavy tanks. The decision to increase United States Army strength in Europe— if finally adopted—also might hasten the day when this country could agree to the appointment of an overall commander of North Atlantic Treaty forces. Several of the member nations have advo cated such an appointment but the United States has always op posed the move. The meeting here will be the fourth and most important of the North Atlantic Treaty Defense Committee, of which Mr. Johnson is ^chairman. An official an nouncement said yesterday that the defense ministers would “con sider the work and accomplish ments toward creating an ade quate defegse of the North At lantic area|’ The last meeting was held at $he Hague in April. Following'the meeting here the defense ministers have been in vited to extend their visit to this country for a tour of points of technical military interest. Gen. Bradley, United States Joint Chiefs of Staff chairman, called the meeting of the Military Committee, of which he also is etoirmam-aHis committee is com plied ojlInM'anking military rep IllentaBfeSSBf the impact mem bers. It will prepare recommenda tions to the defense ministers based on plans which have beer forwardpd to it by the five regions’ planning groups. Gl Allotment Measure Awaits Truman's OK By the Associated Press The Senate yesterday passed and sent to the White House a compromise bill providing allot ments for dependents of service men. The measure provides allot ments ranging from $85 to $165 a month to families of servicemen who are not officers. The amounts would include $40 to $80 a month to be deducted f;om the service men's pay checks, the Government providing the rest of the money. The program would cost an esti mated $300 million from August 1 to next June 30. Seat Pleasant Girl, 17, Missing Since Monday Prince Georges County police said today they had been asked to issue a lookout for Elizabeth L. Fischer, 17, missing from her home in Seat Pleasant since Mon day night. No foul play was suspected, po lice said. They received a report that the girl had visited Marshall Hall over the week end with her family and disappeared after their return to their home in the 500 block of Sixty-ninth street. Her description is five feet, nine inches tall, weight, 175 pounds, wearing white sandals, brown skirt and white blouSe. Israel is subsidizing citrus grow ers by paying part of workers’ wages. ♦ Official Korean War Reports By th« Aiiociottd Pr«i TOKYO, Saturday, Sept. 2.— Text of Gen. MacArthur’s To hvo headquarters Release No. 363, timed at 12:25 a.m. and issued at 1:15 a.m. today (11:15 a.m., Friday, EDT): On the western front, elements of United Nations forces were poised for an all-out fight to re store. its positions in the vicinity of the junction of the Naktong and Nam Rivers, where enemy forces have driven to Songjin. At last report the enemy was being contained in its drive four miles east of the river junction. With the exception of Haman in the southern sector, which at last report was held by an estimated enemy group of 300, there was no significant enemy action on other fronts. In the northeast the ROK 3d and Capital Divisions have been slowed by enemy resistance. TOKYO, Sept. l.—Text of Korean Release No. 362, air, timed at 9:10 p.m. (7:10 a.m., EDT) today: All types of United States Air Force planes supported the United Nations ground troops today, the fighters flying close support in the southwest battle area and bomb ers ranging through Korea to sever means of transporting sup plies and reinforcements sorely needed by the Communists. Early reports from Flyers indi cate heavy damage to bridges, rail lines, airfields, troop concen trations and vehicles carrying supplies. B-29 Superforts continued their interdiction of North Korean rail and road communications, already crippled. On the west coast, where bad weather prevailed, B-26 medium bombers gain covered the coast from Seoul on the north to Haenan on the southwest tip of Korea. They struck marshalling yards, bridges, rolling stock and troops. One B-26 crew spent two hours in a single attack on enemy ground firing positions in the Chinju area. Air controllers spot ted the heavy firing. The enemy position was finally silenced, 1st Lt. Roger W. Little, Red Bud, 111., said. Capt. John Gassier, Boston, spotted a train of 10 box cars a few miles west of Seoul. He de stroyed the locomotive and one box car, setting fire to two others and damaging the rest. “We got the most out of our nine bombs and 1,000 rounds of 50-caliber ammunition,” he said. In the Masan area F-80s strafed troops and artillery pieces, also rocketing supply dumps at that strategic point. The F-51 Mustangs operated in full force in close support of U. N. troops in the southwest area, and were still at it at sundown. Air controllers sent one flight to a supply dump, which was blown up. They also got an artillery piece and trucks, but the exact positions were not revealed. With the weather closing down in the southwest area late today, three tanks were strafed and rocketed near Waegwan by F-80 jets. “We destroyed one tank and damaged the other two,” said 1st Lt. Thomas W. Queen, San Diego, Calif. Other F-80s went above the 38th parallel, strafing 10 box cars and six passenger cars on a train near the west coast. The same flight' damaged six . box cars at Masan. Five - hundred - pound bombs were dropped on a bridge near Seoul by F-82s. 5 Die, 41 Are Injured In Bombay Red Rioting • y the Associated Press BOMBAY. India. Sept. 1.—Five persons were killed and 41 w>unded yesterday during a police battle with Communist-led demonstrators striking for 24 hours in support of textile workers’ bonus demands. Police tear gas and a heavy rain succeeded in scattering the dem onstrators by nightfall. The general sympathy walkout was organized by Communists and Socialists. The textile strike is continuing. During the demonstration Com munists burned the Indian national flag and their “Gandhi caps” in a gesture of defiance against Prime Minister Nehru’s administration. UAW Has Trouble, Too: Ad Solicitors Strike By the Associated Press TOLEDO. Ohio, Sept. 1.—The CIO had strike troubles in reverse today. Seven telephone advertising solicitors walked out in a wage dispute yesterday at the weekly Toledo Union Journal of the CIO United Auto Workers. Arkansas Gazette Is Sued By Strikers for Overtime ■y the Associated Press LITTLE ROCK. Sept. 1.—Eight striking circulation department employes of the Arkansas Gazette yesterday filed suit in Federal Court here seeking $33,311 as overtime and damages. The complaint charges the men worked 57 hours a week and re ceived pay for only 47 hours dur ing various periods between 1946 and 1949. After failure of contract nego tiations, American ' Newspaper Guild members in the editorial de partment of the Gazette, a morn ing paper, went on strike last De cember 17. Two days later Guild members of the circulation de partment walked out. The paper has continued to publish. The suit yesterday was filed un der the Fair Labor Standards Act which required that employers en gaged in interstate commerce must pay overtime wages for all hours worked in excess of 40 hours 'k'Wedk. v-".' * France seeks to increase Its machinery sales in Zealand so she can purchase more of that country’s wool. U. S. Stops 356 Trucks Germans Sold to Hungary ly th* Auocioled Pr«* FRANKFURT. Germany, Sept. 1.—The Americans clamped down harder today on the shipping of strategic supplies to Iron Cur tain countries by stopping 356 former United States Army trucks headed for Hungary. Several carloads of unidentified materials also were held up at West Germany’s Eastern border, the American High Commission announced. The trucks were be ing delivered by a West German sales agency. Three days ago the Americans stopped 30 rail carldads of machines and machine tools on their way to Russian-occupied East Germany and Communist ruled countries of Eastern Europe. The Allied High Commission is reported to have directed the West German government to plug up the loopholes through which such supplies are pouring. The trucks held up today were part of 1,000 the Hungarian gov ernment ordered from the Ger man agency, which had bought them from Army surpluses. a_ Soviet OKs Iranian Talks Over Frontier Disputes By the Associated Press TEHERAN, Iran, Sept. 1.— Soviet Russia is stepping up its campaign for Iranian friendship by agreeing to discuss long standing border disputes, it was learned authoritatively today. The Soviet proposal came in the midst of trade talks here, which apparently are intended to counter negotiations under way for an American loan to bolster Iranian economy against Com munist pressure. For years Iran has been trying to get Russia to settle a dozen boundary disputes which in the past have led to minor frontier clashes. The Russians always have refused to set up a boundary commission. Now they have changed their tactics abruptly in a new friendship campaign. Teheran newspapers report that Soviet Ambassador Ivan Sadjikov also is pressing Premier Ali Razmara to recognize the Chinese Communist regime. There has been no official confirmation of this. ?**$£?■ ■ „ detroit *ss?a» *2*5,*;' sszfjss- £*&: 0 — ^Ar^ssr*** city Sam *?°ut too-tJS^WQn. *°puSi of0n f°rc6*21? 5 JJ°n and a ht}Jn°re than lng * The dethaJ/- a ®u bers oraf?OQsfcrators public WorLr^^Udent* rr®ein' * «* ****»’ Uhfcn.** J»X 50r te/ttet ff °U5ted by A 5 on« to *»toslp»/end«ncle» nthe CIO 25,000 mu f Jo,ooo o/ ILc]al®« Alhr^HyxU ^l^if. union sairi°r Cobo’/ i!' it any ot?hStrike »nlid2er'' «>• t0 stick. the **ngs I* <*Ue<i _ _ ere nude p°w OsmTT'— aoSTor Bfi*» Oi/j “«2» “.S't p^&de with « Such Oft ^®tivpjv Jy tttfflLf* °^ tha. ati15^ are €^£hard an/r°® the JJf*JUaln. ~ r~^liardi^»enhaden. 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