Evening star. [volume], June 30, 1954, Image 1

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

Image provided by: Library of Congress, Washington, DC

                
Weather Forecast
Fair tonight, low near 68. Tomorrow,
partly cloudy and continued warm with
thundershowers likely. (Full repeat on
Page A-2.)
Midnight 75 6 a.m 65 11 a.m 81
2 a.m 72 8 a.m 70 Noon 84
4 »jn 67 10 a.m 79 1 p.m 85
An Assocloted Press Newspoper
102 d Year. No. 181. Phone ST. s-5000 ** S WASHINGTON, D. G, WEDNESDAY, JUNE 30, 1954—SEVENTY-SEX PAGES. SSL -ani > «usa**ai& WcTm&lt Final. 10c Additional 5 CENTS
House Passes
Foreign Aid
Bill, 260-125
Motion to Send
Measure Back to
Committee Beaten
BULLETIN
The House today passed the
foreign aid authorization bill,
260 to 125. Roll call approval
came after a re-committal
motion was defeated on a
standing vote of 172 to 75.
By Robert K. Walsh
The House moved toward
passage of a $3.37 billion foreign
aid authorization bill today
after upholding on a 390-0 vote
a provision banning funds to
any country joining a non
aggression pact with Commu
nist governments.
The provision was included in
the bill yesterday on a tentative
voice vote after being offered by
Representative Vorys, Republi
can of Ohio, on behalf of the
Foreign Affairs Committee.
Representative Mac Cormack
of Massachusetts, Democratic
deputy leader,'moved to put the
House on record with a roll call,
although he was personally in
favor of the amendment.
Recommittal Sought.
The House prepared to vote
later today on a scheduled mo
tion by Representative Williams,
Democrat, of Mississippi to re
turn the entire bill to commit
tee and thus delay it indefinite
ly. Expected defeat of the re
committal motion would clear the
way for a final vote on the bill
itself.
The measure would authorize
about $lO9 million less than
President Eisenhower asked for
the administration’s foreign-aid
program during the fiscal year
beginning tomorrow. Amend
ments, adopted by the House
yesterday, trimmed a total of
$lO2 million. Previously the
Foreign Affairs Committee had
cut $7 million from the admin
istration’s original request. No
piove was made in ths House
today to restore those cuts or to
increase any other items in the
measure.
In addition to more than a
dozen amendments tentatively
voted yesterday and approved
today the House this morning
adopted an amendment that
would require use of American
ships in transporting at least
50 per cent of the foreign aid
equipment and commodities.
The House also adopted an
amendment offered by Repre
sentative Gross, Republican, of
lowa, striking out a section al
lowing the President to waive
certain Federal laws regulating
contracts in connection with the
foreign-aid program.
Two Amendments Approved.
Subject to possible but unlikely
reversal on the final vote today,
the House approved two amend
ments offered by Representative
Bentley, Republican of Michigan.
These struck out a $27 million
provision for development of spe
cial weapons in Europe and $75
million for manufacture of mili
tary aircraft in the United King
dom.
Besides signifying its feeling
on the Vorys amendment to the
White House, within a few hours
after the departure of British
Prime Minister Winston Church
ill, the House debate on various
other amendments indicated that
the foreign aid total is still far
from settled.
A separate bill providing the
funds w r ill be acted on next
month after being reported out
by the House Appropriations
Committee. Representative Ta
ber, New York Republican who
heads that committee, served
notice he favored still further
cuts. Representative Anderson,
Republican of Minnesota,
warned the House that he will
try to have the supply bill re
duced by at least S4OO million
more. That saving, he declared,
could be used to provide for
parity price supports for basic
agricultural commodities.
Moscow Reports Russia
Has Atomic Power Plant
By th« Associated Press
LONDON, June 30.—Moscow
Radio announced today the So
viet Union has opened its first
industrial atomic power station
with a capacity of 5,000 kilo
watts.
The broadcast quoted a state
ment from the Soviet Council
of Ministers saying the station
opened Sunday producing elec
trical current for both industry
and agriculture.
It did not give the location but
said other stations of larger size
are planned with a capacity
from 50,000 to 100,000 kilowatts.
The United States is now build
ing the equipment for its first
peacetime atomic power plant
to be located at Shippingport,
Pa., on the Ohio River.
President Plays Golf
President Eisenhower left for
the golf course at Burning Tree
Country Club today shortly after
news conference.
V
Eisenhower to Consider Appeal
It Dr. Oppenheimer Requests
AEC, by Vote of 4-1, Refuses to Clear
Scientist for Access to Secrets
By L Edgar Prina
President Eisenhower today
said he would consider any ap
peal by Dr. J. Robert Oppen
heimer from the Atomic Energy
Commission ruling which brand
ed the noted physicist as a se
curity risk and denied him ac
cess to Government secrets.
The President declared at his
press conference that any citi-
Text of AEC Majority Opinions and Dis
sent in Oppenheimer Case. Pg. A-6-7
See Editorial, "American Tragedy."
Page A-20
zen when he feels himself abused
has the right to appeal. He said
that if Dr. Oppenheimer were
to make such a plea it would
be given careful study.
Gen. Eisenhower added that
he would probably turn over any
Oppenheimer appeal to the Jus
tice Department for analysis
and recommendation. In reply
to another question the Presi
dent said he had not read the
record in the Oppenheimer case.
The 4-to-l decision by the AEC
ended the career of Dr. Oppen
Lehman Says Courts
May Curb Probers
Unless Congress Acts
Third-Degree Quizzes
In Offices of Committee
Employes Charged
Senator Lehman, Democrat-
Liberal, of New York, declared j
today that abuse of the power to
investigate has created public
reaction “which may, unless we
act quickly and wisely, result in
a complete paralysis of the vital
investigating power of Congress.”
Unless Congress sets up its own
rules for fair and impartial in
vestigations, the Supreme Court
may do it, Senator Lehman said,
adding he hopes the present
broad Senate and House au
thority “is never hedged by rigid
judicial restrictions.”
Senator Lehman spoke before
a Senate Rules subcommittee ■
holding hearings on a variety of
proposed rules to govern congres
sional investigations.
He said that “abuse of the in
vestigating power by certain
committees and certain commit
tee chairmen” has been growing
“not only over the past two years
but over the past 20 years.”
Power to Probe Expanded.
He said investigating power
had been expanded beyond
simply laying a basis for legisla
tion “to inquire just for the sake
of inquiring ... to arouse public
opinion, and, in very recent years
to ‘expose’ .’* It is this expansion, j
he said, that could bring a court
test and possibly curbs.
Because of this expansion in
the scope of investigations. Sen
ator Lehman said, the “zeal of
congressional committees to in
vestigate has collided with the
rights of the people,” and many
individual rights have “been
grossly violated.”
“It is a fact that members of
the press have been called before
investigating committees in an
attempt to intimidate and to
smear them,” Senator Lehman
said. “This is a violation of the
freedom of the press.”
“It is a fact that individuals
have been served with subpoenas
and ordered to be present on a
day certain at a place certain,
without setting forth the subject
of the inquiry, or the specific
matters on which they are to be
required to testify.
Third-Degree Quizzes.
“It is a fact that subpoenas
have been used by investigating
committees as substitutes for
warrants of arrest, to compel the
presence of individuals, and to
subject them to third-degree in
terrogation, not by committee
jpembers. but by committee em
ployes, not in open or even exec
utive hearings, but in the offices
of the committee employes.
“It is a fact that witnesses
have been publicly accused,
without proof, of the most hein
ous offenses including treason
. . . merely on the basis of the
personal judgment or prejudice
of committee chairmen or indi
vidual committee members. . . .
“It is a fact that American
citizens have been called before
committees . . . and subjected
to trial by ordeal, with all the
weight and power of Congress
arrayed on one side, while the
witness has had none of the pro
tections or safeguards to which
he would be entitled in a court
of law.’’
Senator Lehman proposed that
every witness be insured "against
unjustified defamation and dis
grace” by assuring him the right
to tell his side of the story and
the right to have an attorney
present. Those facing “adverse
evidence” should have the right
to cross examine and compel at
tendance of those making
charges, he said.
Israel President Recovers
JERUSALEM. June 30 (A*).—
Israel President Izhak Ben-Zvi,
who underwent an operation 10
days ago, left the hospital today
to begin two weeks of convales
cence leave from official duties.
Mbt timing §kf
heimer as one of the Govern
ment’s foremost consultants on
atomic defense matters. It was a
12-year career, which for years
made him privy to the highest
national secrets.
Three of the four commis
sioners said they found “funda
mental defects in his character”
and that the wartime director
of the Los Alamos, N. Mex.,
atomic bomb laboratory had
“dangerous associations.”
Gen. Eisenhower last Decem
ber personally ordered that a
“blank wall” be placed between
Dr. Oppenheimer and Govern
ment secrets until the security
question had been resolved.
The AEC action yesterday
upheld the majority of the spe
cial three-man Personnel Se
curity Board, headed by former
Army Secretary Gordon Gray,
which heard some 40 witnesses
and took more than 3,300 pages
of testimony. The Gray board
recommended that Dr. Oppen
heimer’s contract as a consultant
to the commission be terminated
late last month. Ironically, to
(Continued on Page A-8, Col. 1.)
Guatemala Shooting
Ends as Reds Flee;
Rebels Map New Rule
. Arbenz Takes Refuge
In Mexican Embassy;
Junta Tightens Control
By the Associated Press
GUATEMALA, June 30.—The
fighting was over today in Guate
mala’s 12-day civil war and the
United States Embassy hailed
the outcome as a victory over
communism.
The new military regime called
on all civilians to surrender any
arms in their possession. It
prepared for talks with the anti
communist insurgents on the
future course of this Central
American republic.
Col. Carlos Castillo Armas’
rebel forces announced tftat a
cease-fire would remain in es- '
. feet pending formal armistice:
negotiations.
Former President Jacobo Ar
benz Guzman was reported to
have taken refuge in the Mexi
can Embassy here, along with
Communist and left-wing lead
ers who had supported his
regime.
To Surrender Arms.
Col. Alfego Monzon, the leader
of the new junta, called on all
persons to surrender their arms
or face severe punishment. The
Arbenz government was said ’to
have distributed arms to farm
ers and workers prior to his
j ouster on Sunday.
Col. Monzon and Col. Castillo
Armas were expected to meet to-
Dulles Will Review
Guatemala Revolt
In TV Talk Tonight
Secretary of State Dulles
will review the situation in
Guatemala in a 15-minute
speech which will be tele
vised over Dumont, WTTG,
at 8:45 o’clock tonight.
Radio rebroadcasts of the
talk will be given over
WMAL at 9:15 p.m., WRC
and WTOP at 10:15, and
WWDC at 11:15.
i
day or tomorrow in neighboring
El Salvador to work out details
of both the armistice and a new
government.
Diplomats here in the Guate
malan capital believed the two
—anti-Communists both—would
join in still another new gov
erning junta. The general feel
ing was that Col. Castillo Armas
could dictate his own terms.
Col. Monzon’s four-man junta,
which took over in the capital
before dawn yesterday, already
had launched a roundup of Com
munists.
Rounding Up Reds.
( Ex-President Arbenz and most
of the top Reds escaped for the
[ moment, taking refuge in the
\ Mexican Embassy. Many lesser
. rank leftists and fellow travelers
. were among the first to denounce
. communism and cheer, "We
have won.”
i The time of the Castillo-Mon
t zoon meeting was not known
l here early today, but it was ex
> pected to be held as soon ?s the
i (See GUATEMALA, Page A-8.)
i Eisenhower Asks
Drive to Reduce
Holiday Deaths
President Eisenhower
j called today for an effort to
1 cut the Nation's deaths over
7 the July 4th holiday at least
| in half.
The President recalled
j that during the last July 4th
week end some 400 Ameri
cans were killed in highway
and other accidents. The
President said he would like
to see newspapers, radio and
television do everything they
) can between now and the
f holiday to cut that figure
- * in half this year.
11
President Asks
Proof ofßeds'
Good Faith
Says Hope of World
Lies in Peaceful
Co-Existence
President Eisenhower declared
today that the hope of the world
is for the peaceful co-existence of
all nations, and that he is always
willing to confer with any one
on this problem if he is con
vinced that the other side is
sincere.
Gen. Eisenhower said that, so
far, the United States has found
on the other side an aggressive
attitude that has made difficult
all attempts to reach a position
of peaceful co-existence. He said
there must be good faith on both
sides.
The President discussed Amer
ica’s foreign problems at length
during a news conference which
featured many questions about
Gen. Eisenhower’s just-ended
talks with British Prime Minis
ter Sir Winston Churchill.
Asked whether Sir Winston
pressed his long-standing desire
for a three-way meeting with
Gen. Eisenhower and Soviet
Premier Malenkov, the President
said that all of us have been
willing to confer if we are con
vinced that the other side is
sincere.
Proof Through Deeds Needed.
If there is any proof through
deeds that the other side is sin
cere, Gen. Eisenhower continued,
the United States is quite con
tent to do anything it can.
The President said he knew
the American side was sincere.
He said the hope of the world
is for peaceful coexistence, add
ing we’ve got to find away to
live together.
The President declined to go
into details about Southeast
Asia, but said—and allowed di
rect quotation: “I will not be a j
party to any treaty that makes
any one a slave.”
This implied that the United
States would not indorse any
French agreement that gives the
Indochinese state of Viet Nam
to the Communists.
The President expressed great |
satisfaction that the Reds were
on the run in Guatemala, but
left details to Secretary of State j
Dulles to explain in a radio ad
dress tonight.
Calls Conference Fruitful.
Gen. Eisenhower, praising
Prime Minister Churchill as one
of his warmest foreign friends,
said the Anglo-American confer
ence here over the week end did
much to get affairs between their
two countries back on the rails.
He said he and Sir Winston
found that their broad purposes
—and beliefs on their applica
tion of those purposes in specific
areas—were closely established
as common to both nations.
The President disclosed that
he and Sir Winston discussed
problems of the hydrogen bomb,
but said it was merely a search
ing out of an understanding. He
said there were no specifics to
report about this aspect of the
talks.
Two McCarthy
Aides Denied
Security O. K.
The Defense Department has
notified the Special Senate In
vestigatings subcommittee that
security clearance for two mem
bers of the staff of the regular
McCarthy subcommittee has
been denied and that its action
is final.
Acting Chairman Mundt of
the special subcommittee which
aired the Army-McCarthy row
made public the substance of the
Defense Department letter after
an executive session of the group
today.
Senator Mundt refused to
identify the two staff members.
He said he was writing a letter
to Senator McCarthy, chairman
of the regular investigations
subcommittee, urging him to call
a meeting of his group at the
earliest moment to take up the
matter. The Mundt group is
not authorized to take action
against the McCarthy Commit
tee staff.
Senator McCarthy had not re
turned to his office from a va
cation. The Senator has been
resting at an undisclosed spot for
11 days.
Senator Mundt said the De
! sense Department refused to
state the nature of the accusa
tions against the two, but indi
cated it was not of a subversive
or pro-Communist type.
One of the staff members who
has been refused clearance has
been widely reported to be Don
ald A. Surine, subcommittee in
vestigator, who was “dropped
from the rolls” of the FBI in
1950.
Frightened by Mouse,
Woman Given $3,200
By th« Associated Press
JERSEY CITY, N. J., June 30.
—An award qf almost $3,200 was
made yesterday to Mrs. Cath
erine Hylander of West New
York for permanent and tempo
rary disability resulting from her
being frightened by a mouse
while she was at work.
\SShs-' fine race,soys...
SEE YOU IN .
. . W..S,
Europe Relieved Over Talks,
But French Resent 'Sidelining'
Hope for Peace in Indo-China Now High;
France Takes EDC Slap Philosophically
By Crosby S. Noyes
Foreien Correspondent for The Star j ]
PARIS. June 30.—Even as- 1
suming that official communi- j
ques—l ik e icebergs—u suall y |
have eight-tenths of their sub- i
stance beneath the surface, the 1
result of British-American talks
in Washington have been re- !
ceived with relief in Europe. j
On the basis of formal an- '
nouncements and reports re- .
Churchill Calls Canada “Master Link" 1
in Anglo-American Unity. Page A-3 (
Churchill Visit Expected to Strengthen
U. S.-British Bonds. Page A-3
ceived here so far, there is some
question as to how far the new
agreement goes. There is un
derstandable resentment in
France at having been banished
to the sidelines during a major
conference on Wesiem policy
and dispute as to “who won” in
the accommodation of conflict
ing Anglo-American views re
flected in the communique.
But the almost universal Eu
ropean anxiety about the Wash- :
ington conference has been re
lieved: Fear that Prime Minister j
Churchill and Foreign Secretary i
Eden would be won over by |
American arguments for imme
diate action which might scuttle
hope of peaceful settlement in
Asia.
Shrug Off Hard Words
In return for this the French
are inclined to accept in good
grace the hard words in the
Washington agreement devoted
to Western Europe. At this point
the French are so accustomed to
having pressure put on them to
ratify EDC that they scarcely
notice it any more. Some feel it
was unfortunate that Britain and
the U. S. should have made
such a point of ganging up on
France at a time when the fate
of the treaty hangs in critical
balance. But they admit that
some common ground had to
be found and that the results
of the Anglo-American talks
could have been much worse.
By and large both the British
and the French are inclined to
take comfort in the very
vagueness of the joint state
ment on Southeast Asia. The
general conclusion is that no
substantial agreement was
reached and that no earthshak
ing decisions were taken. And
strange as it may seem to many
Americans, this is matter for
rejoicing for those who Still pin
hopes on trie chance of a peace
ful settlement in Indo-China.
Along the line of minor ad
justments it is noted that the
Youngsters With Bad Hearts
Get Chance to Share in Camp
All year long, they are side
line children.
They are just onlookers for
the adventures of other boys and
girls. They know the bitterness
of being "different.”
These are the children with
heart disease. They are ex
cluded from the regular sessions
of camp each summer.
The Summer Outings Commit
tee, however, operates a fifth
session of Camps Goodwill and
Pleasant—this year from August
19 to September I—especially for
children with heart trouble.
At Cardiac Camp all the chil
dren are alike. The program is
“slowed down,” but it’s the same
for every one. Actually, a child
frequently learns, under a physi
cian’s direction, that he can do
! more than he or his perhaps
; overprotective elders thought he
! could.
With a balance left over from
last year. The Evening Star
Summer Camp Fund campaign
i now has reached its objectiv^i
State Department now is recog
nizing officially at least the pos
sibility of reaching an agree
ment with the Communists —a
possibility which until now had
been ignored as stubbornly as
the recognition of the Red
Chinese.
The French are also grateful
for the renewed warning to the
Communists at Geneva that
they afe asking for trouble if
they keep on coming up with
“demands which prevent an ac
ceptable agreement.”
But their big interest obvi
ously centers on the wonderfully
imprecise statement that Britain
and the United States will “press
forward with plans for collec
tive defense” in Southeast Asia.
As interpreted in Europe this
sentence means precisely the
opposite of what it says. It
means in fact that no formal
steps will be taken to create a
Southeast Asian security organ
ization during this interim stage
of negotiations at Geneva.
“Pressing forward” in this sense
means informal contacts and
preliminary exploration of the
subject at least until the results
of the present French effort to
reach agreement are known.
Future Safeguard.
It is on this assumption that
European optimism about the
Washington talks is based. It is
taken as a clear concession to
the British view that whatever
security system can be devised
its purpose, its scope and its
membership will depend very
largely on what happens at Ge
neva. In short that the security
pact is to be what Mr. Eden said
it should be—a future safeguard
and not a present panacea.
Admittedly this interpretation
may not be nearly so general in
the United States. At this stage
one cannot avoid an uneasy feel
(See NOYES, Page A-4.)
UMW Physician Slain
At Door of His Home
By th« Associated Press
ST. LOUIS, June 30.—Dr.
Cecil A. Z. Sharp, 45, area
medical administrator for the
United Mine Workers Union,
was shot and killed at his home
last night by a man who fled
without saying a word.
Dr. Sharp had gone to the
door of his home with his son
Cecil, 16, to check a noise out
side.
Cecil, who described the as
sailant as 6 feet tall, was stand
ing beside his father. The
doctor’s wife and a daughter
Angela. 14, were in the house.
of making sure that the regular
sessions of Camps Goodwill and
Pleasant will be filled this sum
mer.
Additional dollars, however,
could well be used to help the
Washington Heart Association
finance Cardiac Camp vacations.
The cost per child for two weeks
is SSO. Contributions may be sent
to The Evening Star Summer
Camp Fund at The Star Building.
The following contributions to
the camp fund are acknowledged
today:
Previously acknowledged *10.910 96
Anonymous 17.86
Anonymous 5.00
Ralph N. Werner 5.00
W. A. Thornton 35.72
Spartneri of the Coast Guard
League _ 36.00
Julius L. Sneert 20.00
Mrs. M. C. L. 5.00
Anonymous 35.00
Roland A. Linger 25.00
The Ryder Family 35.72
Anonymous . 5.00
VFW Press Post No. 4122.
in memory of Robert Bren
ner Memorial Fund 71.40
Lewis C. Cook 10.00
Dorothy M. Corson 35..2
Florence A. James 5.00
Roy. Ann, Carl. Kay and
Don L. . is no
Fleur Straus Bresler 20.00
Total to date HI. |«.3S
bt
Today’s Eclipse
If you were up early enough, you could
see what happened when the moon
eclipsed the sun today. If you didn’t get
to see it, you can find out about it in the
story and pictuffe on (
Page A-4. •
New York Stock Markets, Pages A-30-31
DafaonShirley-Duke
Financing Offered
Ai Housing inquiry
False Statements Made
Monday by Government
Official, Senators Told
By Hector McLean
Senate housing investigators
today began probing the legal
and financial maneuvers that led
to building of the sl3 million
Shirley-Duke Apartment project
in Alexandria, Va.
With seven out of eight prin
cipals clustered before them, tlje
Senate Banking Committee
heard that:
1. Statements Monday by Wil
liam F. McKenna, the admin
istration’s chief of the housing
program, were “reckless and
false.” The charge was made by
A. Harding Paul, attorney for
two of the owners of two of the
six sections in which Shirley-
Duke is divided.
2. The project was originally
financed by Investors Diversified
Services, which is owned by the
Allegheny Corp.—reportedly con
trolled by railroad magnate Rob
ert Young—and in which Texas
multi-millionaire Clint Murch
ison now has an interest.
3. IDS had “picked up over S2O
million” on Shirley-Duke and
similar projects throughout the
country.
4. Three of the builders, each
of whom is president of two of
the six Shirley-Duke sections,
went on the payrolls of their
corporations at salaries of $20,-
000 a year each as soon as con
struction started in 1949.
5. IDS advanced initial con
struction funds charging a 6Vi
per cent fee. This totaled $889,-
900.
6. Total profits paid so far to
the builders and IDS are $3,-
419,407.
7. The deal was financed by
the builders on a total invest
ment of $6,000 plus funds bor
rowed from IDS.
8. The FHA would not allow
the owners to pay off their mort
gage at a faster rate than was
specified except under a one per
cent penalty charged to the FttA
and three or four per cent to the
mortgage holder. •
9. To builders were advised by
the Internal Revenue Service
that their profits could and
would be treated as capital gains
for tax purposes rather than as
earned income.
10. Bryan Gordon, jr., one of
the builders, said in an applica
tion for mortgage insurance by
the Federal Housing Administra
tion that he would put up land
costing $178,000. He told the
committee, “I owned it under a
verbal agreement.” Ultimate
value estimated for the land was
$505,499.
Plans Were Changed.
Carl Budwesky, stockholder
and former city manager of Alex
andria, now a resident of Wil
mington, Del., declared Mr. Gor
don did not put up the land or
the money for it because of a
change in financing plans.
Originally, he testified. IDS
was to own half the project while
the builders owned the other half.
Later, he said, IDS decided not to
own any of the projects and to
add a 5 per cent service charge
for financing it.
Also, Mr. Budwesky testified,
(See HOUSING. Page A-4.)
Theda Bara Undergoes
Emergency Operation
' By th» Aitociatod Priu
HOLLYWOOD. June 30—
Theda Bara, the siren of the
silent screen, was reported pro
gressing satisfactorily today after
an emergency abdominal opera
tion.
A spokesman at California
Hospital said her condition is
['“good.” First reports after yes
terday's surgery said Miss Bara
was gravely iIL
!
Senate G. 0. P.
Offers Own Cut
In Income Tax
Plan Drafted Hastily
To Balk Democrats
As Ballot Nears
By J. A. O'Leary
Senate Republicans came up
today with a last-minute plan
of their own for giving more tax
relief to wage earners in an ef
fort to beat a Democratic pro
posal due to be voted on this
afternoon.
In a hastily called party con
ference, G. O. P. leaders an-
Eisenhower Plans No Further Appeal for
His Farm Program. Page A-13
nounced they would move to cut
in half the special tax credit the
House approved for stockhold
ers and couple with It a limited
SIOO increase in the S6OO per
sonal exemption for each tax
payer in the low wage brackets.
It appeared that administra
tion leaders yielded to the argu
ments of a group of Republican
Senators who felt the Democrats
had seized upon a potent cam
paign argument in their tax bill
amCTidment.
May Delay Test Vote.
There were signs that the un
expected Republican move might
delay a test vote until late to
day or tomorrow. There was no
time to pfepare copies of the
Republican plan for each Sen
ator by the time the Senate met,
and Senator Gore. Democrat, of
Tennessee, blocked a request of
unanimous consent to offer the
Republican proposal as a com
plete substitute for the George
plan. Unless this objection is
withdrawn, the Republicans will
have to offer their proposal
piecemeal by amending each sec
tion of the George plan.
Under the prevailing agree
ment there could be two hours
of debate on each paragraph of
the substitute.
Would Cost Less.
Senator Milikin, Republican,
of Colorado, gave the Senate
these figures to show how much
less the Republican amendment
will cost:
Net effect of the George plan
on the Treasury—s6s7 million
in 1955: $1.7 billion in 1956 and
$1.5 billion in 1957.
Net effect of the Republican
substitute—ssoo million in 1955:
$730 million in 1956, and $548
million in 1957.
The Democrats have been tell
ing the country that the tax
bill as it stands gives substantial
relief to “coupon clippers” but
no additional tax cuts to wage
earners.
Democrats Rally to George.
The Democrats have rallied
behind the amendment by Sen
ator George of Georgia, which
woiild strike out all of the new
tax credit for recipients of divi
dend income and substitute a
SIOO increase in the S6OO exemp
tion for all taxpayers whether
they depend on dividend income
or wages.
Under the House bill recipients
of dividends could deduct the
first SSO and then claim a credit
of 5 per cent on the remainder
of dividend income this year.
Starting next year the dedica
tion would go up to SIOO with a
credit of 10 per cent on the re
mainder.
Chairman Millikin of the Re
publican conference announced
that the GOP substitute will keep
the dividend income relief at
SSO and 5 per cent indefinitely.
Coupled with it will be SIOO of
additional exemption for tax
payers who are wage earners.
George More .Liberal.
This is less liberal than the
George plan, which gives another
SIOO to each taxpayer and de
pendent.
The Republicans prepared their
substitute so hurriedly that all
(See TAXES, Page A-4.)
State to Withhold Taxes
FRANKFORT. Ky.. June 30
(&). —Kentucky’s pay-as-you-go
income tax plan becomes effec
tive tomorrow. The taxes will be
deducted from pay checks the
same as Federal income taxes
are withheld.
Businesswomen Strive
For Self-Improvement
WOMEN IN BUSINESS WORLD—
No alert working businesswoman con
afford not to belong to the National
Federation of Business and Profes
sional Women's Clubs, ifs newly
elected president, Marguerite to
wait, says in a story by Star Staff
Writer Frances Lide on Page B-4.
ADULT JUVENILES—Soaw juve
nile delinquents, young in years, am
odult in social age, writes a probation
officer in a new book on his experi
ences in the probation service.
Page A-23.
Guide for Readers
Amuse'nts A-32-33 Lost, Found - A-3
Classified ~C-6-15 Music B-17
Comics -- A-36-37 Obituary A-24
Cross-Word -A-36 Rodio-TV A-34 35
Editorial A-20,Sports Cl-5
Edit'l Articles A-21 Woman's
Financial A-30-31 i Section ...B-1 4
Hove The Star Delivered to Your
Home Doily and Sunday
Dial Sterling S-5000