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A-2 ** THE EVENING STAR Washington, D. C. ftItPAY, JUNE 1», 1»M Democrats Plan Fight In Senate for Bigger Income Tax Benefits By Robert K. Walsh Democrats disclosed today they will wage a Senate floor fight to amend the administra- ; tion's $1.5 billion tax revision bill by a SIOO increase in per- | sonal exemptions or by allowing each taxpayer a S2O annual credit. This plan was outlined by i Senator George, Democrat, of Georgia, as the Senate prepared j for debate, probably next week, on the 875-page measure, re ported out late yesterday by the finance committee. Senator George and other Democrats on the committee had considered trying to have the bill reported out with additional income tax relief for individuals. They decided instead to make the attempt in the Senate itself. ; Predicts Approval. Senator Millikin, Republican of Colorado, the . committee chairman, predicted the Senate would accept the bill about as reported. The measure, giving tax relief to several million in dividuals and corporations, was passed by the House almost two months ago. As approved by the Senate committee remained substantially in line with the j House version and with recom mendations of the Eisenhower administration. Besides providing tax cuts totaling approximately $1,477,- 000,000 for individuals, as com pared with $1,370,000,000 in the ; House version, the bill would j continue for one year the 52 per cent income tax rate on cotpova- ; tions. That rate otherwise would drop automatically to 47 per cent. The one-year extension would enable the administra tion to obtain $1.2 billion in revenue and thus help to offset the drop in individual income tax receipts. Prefers S2O Credit Plan. • Senator George said he per sonally would prefer the S2O tax credit proposal. He announced, however, an amendment to in crease personal income tax ex emptions from the present S6OO to S7OO would be offered first. This would lesult in a $2.4 bil lion reduction in individual in- j come tax revenue. The Georgian and several of his Democratic colleagues orig inally suggested that exemp tions be boosted from S6OO to SBOO this year and to SI,OOO next year and thereafter. • That would have meant a $4.5 billion tax cut this year, and almost $8 billion annually thereafter. The White House has con tended the Government could not stand such revenue losses at this time. A $4 billion deficit already is expected for the fiscal year beginning July 1. Senator George said the SIOO exemption Increase amendment will be offered as a substitute for one of the most controversial provisions in the bill. That is the section aimed at easing dou ble taxation of dividends which corporations distribute to stock holders. Democrats i general have attacked that privision as a boon to the wealthy. If this amendment is defeated, Senator George explained, he will offer the S2O tax credit amendment. Committee staff experts have estimated that this plan would cause a revenue drop of about $1,250,000,000 a year. First Revision in 70 Years. The bill awaiting Senate de bate has been described as the first real revision of the internal revenue laws in more than 70 years. Its House sponsor, Rep resentative Reed, Republican, of New York, called it essentially a tax reform measure. He defended it as giving tax relief about equally to individuals and businesses. Besides the provision concern ing taxation of corporate divi dends, one of the most important and controversial changes would permit faster write-offs on busi- . ness outlays for plant expansion and modernization. Before reporting out the bill yesterday the Senate committee eliminated a House provision that would have enabled single, widowed or legally separated, The Weather Here and Over the Nation District and vicinity—Clear tonight, with low in the mid-50s. Tomorrow fair, with little change in temperature. Maryland—Clear and cool to night, with low 48-56. Tomor row fair and somewhat warmer. Virginia—Fair tonight, with j low 48 i -56 in west and 56-62 in \(»«»\\ US. WEATHER BUREAU MAR \ foMjLRW'x ‘W U« Temperature* and Arvos ' I \ -, yj ms Precipitation Expected Tonight •* V _ "S s\<~ i?° .n x / V!U 7S'l^. Temperature f .guret Shew ftp 70 Cenditienc *"*"* At Ot 1 30 A M IST «ein ISSS3 Snow t.'.V.V.I A June 19,1954 Hifkt iinl Uwi in Inditt Scattered showers and thundershowers will prevail tonight in the Gulf region, Florida, Central Lakes area, Upper Missis sippi and Central Missouri River Valleys. Scattered showers also will be present over the Northern Rockies and Northern , Pacific Coastal Plain. Temperatures will rise over the North east and Northwest, while warm weather will continue over the Scpthera and Central parts of the f^ion. — AP Wirephoto Map. ■ '-—r v ■* -v;, 1— VnikflH - A wk. /mm m ' |BM|| H t ■RLgg; 1 ; ' -MMr K m ' ■ i ■* . _ Jj . mL fl mmmf m ■ i ■ | j OUTDOOR PRESS CONFERENCE—Secretary of Defense Wilson took time out to give news men a briefing after the second annual defense problems conference of 110 civilian officials, generals and admirals at the Marine training center at Quantico, Va. —AP Photo. : — i Reds Ease Control On East Germany By the Associated Press LONDON, June 19.—The Rus sians announced today they ai;e giving .the Germans in the So viet Zone a freer hand in run ning their own affairs and are abolishing the Soviet High Com missioner’s office in Berlin. Western officials in Berlin said Sergei Dengin, Soviet represen tative there since June, 1950, w T as leaving to take up a new post. He paid his farewell visits | yesterday. A Moscow radio English-lan guage broadcast said the number of Soviet personnel in East Ger many was being reduced by two thirds. This was being carried out, the broadcast said, “in ac cordance with the decision of the Soviet government to establish with the German Republic re lations similar to those main tained with other sovereign states.” Moscow said the offices of the Soviet High Commissioner were beihg abolished in the districts of Rostock, Schwerin, Neubran denburg, Frankfurt-Oder, Cott bus, Potsdam, Dresden, Leipsig, Halle, Erfurt, Karl Marx-Stadt, Suhl, Gera and Magdeburg. 1 Junior C. of C. Elects COLORADO SPRINGS, Colo., July 19 (#*). —E. Lamar Buckner, 32, of Ogden, Utah, today was elected president of the United States Junior Chamber of Com merce after five ballots and a record 12 hours of voting. He defeated W. L. (Jack) Howard, 35, of Monroe, La. The ballot ing ended the 34th annual con | vention. persons to take advantage of full income-splitting benefits in tax returns. The committee also struck out a proposed special tax rate of 58 per cent on foreign earnings of ! United States corporations. Members said, however, that the dispute was mainly on details and that the provision might be I restored by the Senate. Among other provisions re maining in the bill was the move to make April 15 instead of March 15 the annual income tax filing deadline. Many of the tax changes would take effect as of last January 1. The corporate income tax rate automatically dropped from 52 to 47 per cent last April 1, but the one-year extension in the pending bill would bepetroative to that date. east portions. Tomorrow fair and somewhat warmer. Wind—Gentle and variable tonight. River Report. (Prom U. S Engineers i Potomac River cloudy ot Harpers Ferry and muddy at Great Falls; Shenandoah | cloudy at Harpers Perry. Humidity. ißeadings Washington National Airport.) Yesterday— Pci. Today— Pet. ! Noon 54 Midnight 75 I 4 p.m. 57 K am. 71 5 p m. _ 58 JO am. 51 j * + Quantico (Continued From First Page.) launching of the Nautilus, I world’s first nuclear-powered submarine; (3) the “Project Castle” hydrogen bomb tests by the United States in the Mar shall Islands this spring: and (4) j the May Day air show over Mos cow, where the Russians dem- | onstrated jet bombers “more or less comparable” to the Amer ican B-47 medium and B-52 heavy bomber. Mr. Quarles commented: “While the second and third of these must be rated as great achievements, reflecting great credit on the scientists, engineers and industries responsible for ; their accomplishment, we must conclude that on balance our technical position vis-avis the Soviets is less than it was a year ago.” Radford Explains. IrT telling of difficulties in de fense planning, Admiral Rad ford said: “We cannot be certain that the next war will be a long drawn out affair, and that we will en joy a protracted period for a vast mobilization of our military reserves. “Neither can we be certain that the next war will be only a short, violently destructive as , fair. Nor can we forecast pre cisely the year and the amount of maximum danger “Hence, we are in a position where we have to place greater reliance on combat-ready forces in being.” Admiral Radford said that this nuclear age is “synonymous with the evolution of atomic plenty and mammoth destructive power, i a power which staggers one's imagination.” But he added: “On the other hand, I reject I the concept that atomic power is. | by itself, adequate to meet all our military security needs. We can not afford to rely exclusively on one weapon, or on one service, or anticipate one kind of war. nor should we fail to maintain Army, Navy, Air Force and Marine forces adequate for national security.” President, Nixon Arrive. The President, a former five l star general who is always ready for a chance to get back in fam iliar military surroundings, drove here from the White House at 11:43 a.m. He was accompanied by Vice President Nixon. Gen. Eisenhower expected to spend the remainder of the day at the conference and drive back to Washington over the fast 35- mile route late tonight. The Marine Corps turned out for the welcoming ceremony its Record Temperature* Thi* Tear. Highest, 90, on June 1.1. Lowest, 13, on January 23. High and Low of Last 24 Hours. High. 72. at 5:45 p.m. Low, 55. at 5:15 a.m. Tide Tables. (Furnished by United States Coast and Geodetic Survey.) Today. Tomorrow. High l():40a.m. 11:23 a.m. Low 5:05 a m. 5:4; a.m. High 11 :lop.m. 11:55 pm. Low —5:43 p.m. 6:21p.m. The Sun and Moon. Rises. Sets. I Sun, today 5:42 8:30 i Sun. tomorrow 5:42 8:37 Moon, today 11:20 p.m. 8:30 a.m. Automobile lights must be turned on one-halt hour after sunset. Precipitation. Monthly precipitation m inches in the Capital (current month to date): Month. 1054. Avg. Record. January 2.30 3.38 7.83 '37 February 0.85 3.00 ti.B4 ’B4 March , 3.47 3.05 8.84 'Ol April 3.30 3.30 0.13 'BO 1 May 2.98 3.71 10.00 ’53 i June 0.43 3.07 10.04 ’OO ! Juiv 4.40 10.03 'BO 'August 435 14 41 '2B September 300 17 45 '34 ! October 2.91 8.81 '37 November 2.71 7.18 ’77 December 3.09 7.56 01 Temperature* In Variaua Cities. H. L. H. L. Albanv , 80 48 Key West... 80 79 Albuquerque 00 72 Knoxville 88 .0 Anchorage 70 4; Little Rock- 00 75 Atlanta 70 04 Louisville 94 04 Atlantic City 04 52 Memphis '.'4 74 Baltimore 74 48 Miami 80 .8 Billings 73 40 Milwaukee 01 73 Birmingham 87 08 Minneapolis 74 01 Bismarck 77 58 Montgomery 8, .1 Boise .. 73 4!) New Orleans h,< 73 Boston 77 63 New York 79 58 Buffalo 85 50 Norfolk 70 03 Burlington. TO 50 Oklahoma C. 02 71 Charleston . 80 08 Omaha 02 <U Charlotte . 74 63 Philadelphia 7. n 5 Cheyenne 60 54 Phoenix 100 <2 Chicago . 80 75 Pittsburgh 7 a 52 Cincinnati.. 93 67 P'tland. Me. 84 on Cleveland.. 78 62 P tland. Or. 09 50 Columbus.. 8,1 62 Raleigh 74 fio Dallas „ . 96 76 Richmond.. 7.1 53 Denver T__ 67 51 St. Louis 99 70 Des Moines. 93 7a San Antonio 94 74 Detroit 81 66 San Diego 73 62 . Duluth . 64 48 8. Francisco «7 62 Port Worth. 85 77 Savannah 85 67 Houston 91 76 Seattle 64 M j, —- Familiar Role - - - fx-GM Chief Takes Chance on Cadillac By the Associated Press QUANTICO. Va., June 19. —Charles E. Wilson is taking a chance on a product he use to make. The Defense chief, former president of General Motors Corp., bought tickets on a Cadillac, being conducted at this Marine Corps base where a Defense conference is being held. The raffle is for benefit of a Navy relief organization. usual smartly trained troops to parade before the Commander in-Chief tanned and trimly tailored men with the sharp alertness of experienced fighters. Special Pains on Timetable. Remembering an embarrass ing moment last year, Marine Corps commanders and the De fense officials took special pains in setting up a timetable. A year ago, when the Presi dent visited the annual confer ! ence, there were last minute changes in his schedule. His car sped into -the Marine base and drew up before the quarters of Lt. ( Gen. Clifton B. Cates, com mandant of the Marine Corps schools, where, there was no one home except a doorman The welcoming committee meanwhile was racing frantically back from the base entrance three miles away, where the Presi dent’s car had whisked by minutes before. Secretary of Defense Wilson was official host at a luncheon i to which it was expected the, ! President would speak infor -1 mally. Late in the afternoon— after golf—the .President' was ! invited to an outdoor barbeque. Reservist Plan Offered. Yesterday John M. Hannah, Assistant Secretary of Defense for Manpower, outlined a plan to draft men into the reserves to create a 3-million-man pool of trained fighters ready to go in case of war. Mr. Hannah said the plan, which resembled the universal military training program pre viously received coolly in Con gress, is now being studied by the National Security Council. As Mr. Hannah described it, ; the new program would call for drafting men to meet • require ments of Army, Navy. Marine and Air Force reserve units. In duction of men into the compul i sory reserve, Mr. Hannah said, “might well be done by lot by the local draft boards.” Youths could be selected for this duty at 18*2, when they become liable for military service. Two groups of reservists would be set up: 1 — a “first line” reserve com posed of men and units in train ing and ready for duty in emer gencies. 2 A “selectively callable re * serve” of men with military ex perience and special skills needed in a sudden mobilization. Reserve draftees would under go four months active training, then revert to civilian status but be obligated for reserve training for another seven years and eight months. Mr. Hannah said the plan “contemplates the continuation of selective service . . . for an in definite period.” He said the proposal has beep forwarded to the White House and is under study by the National Security Council. Stuart Named to Head Aircraft Service Group By the Associated Prass Harold C.,Stuart, Washington attorney and former Assistant Secretary of the Air Force, has been elected president of the Aircraft Service Association. The organization, with head quarters here, represents air craft and engine overhaul-modi fication and service companies. Mr. Stuart succeeded Thomas Wolfe, \ president of Pacific Air -1 motive Corp., Burbank, Calif., who was elected chairman of 1 the board. Internal Tensions Kindle McCarthyism, Federalists Are Told Fear of world anarchy has led to tensions in the United States which provided a suitable cli mate for McCarthyism. the opening session of the United World Federalists’ eighth annual general assembly was told yes terday. Some 300 delegates to the three-day assembly at the Stat ler Hotel heard Norman Cousins, retiring president of the Feder alists make this statement yes terday. The group calls itself a nonpartisan, non-profit organ ization for support and strength ening of the United Nations. Mr. Cousins described 'tht world as in the middle of an armaments race for “weapons ol absolute destruction.” Lack of Agency Cited. World antagonisms, he added have increased through lack of i world agency with powers to deal with tensions. » This situation, which has seer two wars since the close of World War 11, he declared, has led tc increasing internal tensions ir the United States. These interna] tensions have provided a suitable climate for the growth of Mc- Carthyism, Mr.' Cousins said. 'f’his, he said, leads to a direct connection between the TV pro gram (the Army-McCarthj hearing) and our program. Mr Cousins, in addition to his post with the Federalists, is editor ol the Saturday Review. At a banquet tonight the as sembly will hear a speech by Dr. Frank P. Graham, United Nations Security Council mediator for India and Pakistan, and former United States Sena tor and president of the Uni versity of North Carolina. Stanley Goes to Chicago RICHMOND, June 19 (/P). — Gov. Stanley yesterday left bs train for Chicago and the annual furniture showings now going on The 63-year-old Governor oper ates the Stanley Furniture Co. at Stanleytown, Henry County. Hearing (Continued From Fii'st Page.) Michigan, has said he will pro pose dismissal from Govern ment service “of those employes who played top roles” on both the McCarthy and Army side ol the controversy. He charged thal testimony of witnesses on botl sides “Was saturated with state ments which were not truthfu and which might constitute per jury . . .’ j Senator Potter had nothins more to say after the Democratu demand for a staff “houseclean | ing.” An aide indicated, how ever, the Senator may : hav< some specific proposals on Mon day when the subcommittee, un ; der Acting Chairman Mundt holds its next executive session. The only difference in person nel between the group which V # v LIVE IN BETHESDA-CHEVY CHASE? in silver spring? ' WORK IN DOWNTOWN WASHINGTON? USE WHICHEVER OFFICE IS i NEAREST AT THE TIME % No matter which office opened your account, no matter if you wish to make a payment or a withdrawal, y6u can transact your business at whichever Perpetual location is most convenient at the time. With the addition of its new office in Bethesda-Chevy Chase, Perpetual is able to widen the scope of its service ... to bring its extensive facilities and, resources to even more people. PERPETUAL BUILDING ASSOCIATION EDWARD C BALTZ, Pnsidom l * WASHINGTON: lITH AND E STREETS. N. W. . ST. J-77M • BETHESDA-CHEVY CHASK: H4O WISCONSIN AVENUE • OL. UHM SILVER SPRING: GEORGIA AND WAYNE AVENUES • JV. M7N ASSETS OVER SISS.SSO.SOS \ . MEMBER. FEDERAL SAVINS* S LOAN INSURANCE CORF., FEDERAL HOME LOAN BANK BYSTEM ... — T r - ; ” Cost of Hearing Won't Come , From Funds for Red Probes T Nobody knows just yet how much the Army-McCarthy hear ings actually cost the Senate In j vestigations subcommittee, but one thing seems certain—the money won’t come out of funds ' needed for the investigation of e Communists. 1 This charge was raised fre -1 j quently by Senator McCarthy . | during the 36 days of hearings. : The Wisconsin Republican as -1 serted that the investigation of B , his feud with the Army was ~ j using up appropriations granted >• j by the Senate to hunt Reds. Actually, however, subcommit ■ ; tee members agreed when the a hearings began that expenses “ | would be paid out of the regular ' : budget, and that then they ! would ask the Senate to grant a e , special supplemental appropria n j tion to make up the difference, if The subcommittee was voted $207,000 by the Senate earlier this year. A carryover of $7,000 , from last year brought its oper a L 1 held the Army-McCarthy inquiry and the regular group is that n Senator Dworshak, Republican, d j of Idaho, moved in as a substi -0 i tute for Senator McCarthy, who n was a principal, or a “defend j ! ant,” in the investigation, e The subcommittee under Sen - j ator Mundt, and without Sen ator McCarthy, met yesterday , t to discuss preliminary details ; of drafting a report to Congress. y | Another meeting will be held r. i Monday morning after the spe ;t | cial committee counsel, Ray H. if Jenkins, returns from his Knox- I ville (Tenn.) home. . | Senator Mundt said it was q hoped Mr. Jenkins “can be pre i,: vailed upon” to put together a il 1 synopsis >of the nearly 2 million i, i words of Army-McCarthy testi mony. This would include only . the pertinent testimony and the i “pros and cons” of the prin j cipal points in controversy, de signed to make the report-writ ing easier. While both Democrats and y Republicans expressed belief they il, can reach an “area of agreement” i. on some phases of the bitter row, - there was virtually no hope they t could agree on a single report, : including recommendations for action. There probably will be one or more dissents. I But the subcommittee under ; Senator Mundt does not have the I power to hire or fire members of l_ the regular staff. That can only ■ be done under the chairmanship IS of Senator McCarthy. The h- Mundt group, however, can make 'I j recommendations along that t' line. . Democrat*’ Two Points. The Democrats, with Senator •_ McClellan of Arkansas as chief j spokesman, said that among the g things to be cleared up quickly ,c before any futher hearings are i- held are: - ! 1. What to do about two mem e bers of the McCarthy subcom i- mittee staff of 25 persons who, i- he said, failed to receive secu t, rity clearance from the Defense Department to handle secret i- documents. h Senator McClellan refused to - r | ating total to $214,000. This fl»- -1 ure was approved by a near •! unanimous vote, with only Sen - 11 ator Fulbright, Democrat, of > : Arkansas, voting no. * Ok request for supplemental t funds is likely to reopen the bit ter Senate debate on the sub . committee’s value which flared j at the time the $214,000 was ap . proved. This time other Senators -1 may join Senator Fulbright as a r result of the hearings, s Subcommittee staff members 11 said the biggest charge of the , 36-day, marathon will probably ■ . be for copies of the 7.423-page »j transcript furnished by the Al- i 5 .derson Reporting Co. The sub r | committee will also be billed for t special telephone and micro i phone service in the Senate cau cus room, and for the room and board of a few of the 30 wit-! 1 nesses who appeared. It will also j r pay the retainers of Special l 3 Counsel Ray H. Jenkins and - three assistants. _ = j y | name the two staff employes,' t but he said clearance had- been „ requested for thefh more than a -1 year ago. 5 Senator Mundt said today he • i would “second” any move by | 1 Senator McClellan asking the - Pentagon "to take up these cases and say ‘ves or ‘no’ ” on the y publications for security clear s ances. '• J 2. What to do about “threats j 1 i that have been made by mem bers of the staff—l will say al- | :. leged threats—in an attempt to; - intimidate members of the com- | mittee” during the hearing. s Senator McClellan revealed he - ! had received a “threat,” although t, i he said he did not take it seri i ously. He also pointed out that -! it was charged Roy M. Cohn, Y ; regular committee counsel, > e threatened to “get” Senator . ; Jackson. Democrat, of Washing . ! ton. Mr. Cohn denied it. Plea to White House. ! ■ ■ j | The Democrats also called on | Y the White House to take imme > diate and appropriate action against any of the Army prin . The principals were Army Sec ” retary Stevens and his chief e i counsel, John G. Adams. It ! might possibly include Struve Hensel, assistant Secretary of Defense, dismissed as a principal j on a party-line vote of the sub y committee. p Senators McClellan, Jackson e and Symington, Democrat, of e Missouri, demanded an immedi t ate Justice Department inquiry to find out if any perjury was 1 committed at the hearing and, if so, to bring swift criminal action. e | At Justice, a spokesman said, „ criminal division lawyers re g ceived daily transcripts of the hearing and are looking intp the possibility of court action. Senator McCarthy has an- j i, nounced a series of new Commu . nist investigations, including one s of the-, super-secret Central In t telligence Agency. The Senator's | plans will run hard into the 3 i demand for a staff shakeup. Dirksen Attributes Hearing Audience to Fear of Communism Senator Dirksen said last night it was the fear of com munism that caused millions to i time in the Army-McCarthy : hearings in recent weeks. The Illinois Republican, dis cussing fear as a motivating fac j tor in self-preservation and a factor in efforts to preserve the Amreican way of life, asked an audience of manufacturers at a dinner meeting: “Why do you think, for 36 days, there' was a tremendous overflow of people at the Mc- Carthy hearings . . . ?” “We were dealing with an overall ideological question of I communism ... a jeopardizing, i menacing force which is a threat i to their country.’ 7 It was the only reference Senator Dirksen, a member of i the Senate Investigations Sub ] committee, made to the lengthy i investigation during a speech before the Lawnmower Institute ! in the Mayflower Hotel. He described the daily crowd ! ing ot the hearing room and the millions of video and radio listeners as “one of the most impressive things about the hearings.” Senator Dirksen’s main topic was the business outlook for the future. He said there is every reason to have confidence in future economic stability for I America. i “We’ve done a phenomenal i job of adjusting,” he declared. “There’s a revival of conserva tive opinion and judgment m this country,” bringing about a reversal of a trend toward Social ism. he added. 37 Senators Oppose Paid TV Hearings By tht Aisociated Pr»n In the wake of the widely televised Army-McCarthy inves tigation. 37 Republican and Democratic Senators have moved to bar commercial spon sorship of TV coverage of future Senate liearings. Senator Bennett, Republican, of Utah announced introduction of the resolution in a Senate | speech yesterday. None of the eight Senators who took part in the McCarthy hearings were among sponsors : of Senator Bennett's resolution. ! Senator Bennett said “what could and should have been done in 10 or 15 days” took 36 days j partly because "the unseen but very real demands of the vast audience . . . forced participants to answer every innuendo and counterattack with the introduc tion of many irrelevant but 1 newsy side issues. . . .” ; Senator Bennett said he feels the televising of hearings takes away their fact-finding value and that “protracted hearings would place premium on demagoguery and reward brish i ness.”