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Evening star. [volume] (Washington, D.C.) 1854-1972, July 02, 1954, Image 1

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Weather Forecast
Fair tonight, low 68. Tomorrow, chance of
showers. (Full report plus weekend resort
forecast on Page A-2.)
Temperatures Today.
Midnight 78 6 ajn.__.72 11 a m 87
2 a.m 75 ' 8 a.m 75 Noon 89
4 a.m 73 •10 am 85 1 p.m 90
An Associoted Press Newspaper
102 d Year. No. 183. N Phone ST. 3-5000
Indiana Banker
Says FHA Man
Shared in Deal
Land Value Rose
After Official Was
'Guest/ Probe Told
An Indiana mortgage banker
told today of participating in
the building of an apartment
house financed by a Federal
Housing Administration guaran
teed loan and that the state FHA
director was part owner.
Charles H. Glueck of Gary,
president of the Mid-City In
vestments Co., also told the
Senate Banking Committee he
paid for a Florida trip for a man
described as a “chief evaluator”
for the FHA. Questioning linked
this trip with an increased valu
ation of land for an apartment
house from $6,500 to $120,000.
Mr. Glueck also testified that
his father and he bought land
for “about” $50,000. The land
later was the chief asset, to
gether with FHA loan commit
ments for apartment projects,
which were sold for $450,000.
Mr. Glueck was the latest wit
ness in the Senate Committee’s
investigation of the FHA and
the windfall profits which were
made under the agency’s Sec
tion 608 program of financing
rental apartments. Windfall
profits occured under the “608”
program, which expired in 1951,
when builders ‘ mortgaged out”
by constructing apartment proj
ects for less than the value of
FHA-insured mortgage loans.
Ferguson Blasts Democrats.
The Indiana State director was
the late R. Earl Peters, who had
formerly been the Democratic
State committeeman. Mr. Glu
eck described him as a long-time
friend and insisted their deal
ings were just the result of
In another development today.
Senator Ferguson. Republican, of
Michigan, said that blame for
the “outrageous situation” dis
closed in the FHA investigation
lay squarely on the Democrats.
He said he could not understand
the failure of the “previous ad
ministration” to expose the scan
The structure in which Mr.
Peters had an interest was the
Florida apartments at Fort
Wayne, Ind., according to Mr.
Glueck’s testimony. It was a
$372,000 project with some 40
to 45 units.
Mr. Glueck testified he and
Mr. Peters each had put $7,500
into the project and that he
later sold his half-interest to
Mr. Peters for $7,500. When he
was questioned why in view of
his propensity to profit by other
deals he had not sought a profit
in this one, he replied that he
wanted his money out and Mr.
Peters was a “friend of many,
many years."
Occupied Penthouses.
He insisted it was not because
Mr. Peters was also FHA State
When the building was com
pleted he and Mr. Peters oc
cupied adjoining penthouse
apartments in it. Mr. Glueck
then insisted he had not paid for
the furniture in Mr. Peters’
apartment but said that he (Mr.
'Glueck) had helped select it.
Mr. Glueck said the furniture
store, an Indianapolis company,
had erroneously billed his com
pany for the furniture for both
apartments. He said a letter was
written to the store asking that
the bills be separated. Mr.
Glueck said a check was finally
sent to the furniture company
for $3,718 covering the furniture
from his apartment and that
$2,629 was paid by Mrs. Peters.
Mr. Peters had died in the mean
Company Suspended in ’52.
•she furniture was paid for in
June, 1952, although it had been
bought about 11 months earlier,
according to the witness. It was
brought out that in 1952 Mr.
Glueck’s company was suspended
and no more loan applications
were received from it by FHA.
Then, Mr. Glueck resigned as
president and was out for three
months as the result of FHA ac
Questioning tried to bring out
that this FHA action might have
been responsible for the pay
ments at that time for the fur
niture, but Mr. Glueck said his
company had frequently tried to
get the furniture store to correct
the bill earlier.
The guest on the Florida trip.
Mr. Glueck testified, was James
Swan. Mr. Glueck said he paid
the round-trip expenses of Mr.
(See HOUSING, Page A-5.)
Shop The Star First
For Ydur New Home
Appearing every Saturday in The
Star you will find the widest variety
as real estate offerings for sale in
the Washington area.
By shopping The Star real estate
section first you get a head start in
your important week-end search for
just the home you want.
In addition, enjoy the many help
ful articles in The Star on what to
look for when you buy a home. Read
the many helpful hints for improving
your home. Keep up with the latest
real estate news.
Read The Star regularly. Rhone
Staffing 3-5000 for convenient home
Johnson Joins Knowland Plea
For U. S. Policy'Reappraisal '
Democrat Leader
Sees Americans
'Uneasy' on Aims
Senate Democratic Leader
Johnson of Texas today joined
Republican Leader Knowland of
California in calling for a com
plete reappraisal of American
foreign policy in the light of
recent events.
The Johnson speech touched
off a general debate and pro
duced the first signs of opposi
tion to withdrawing from the
! U. N. if Red China is seated.
In apparent answer to Win
ston Churchill’s recent plea for
a try at “peaceful co-existence”
with the Communist world, Sen
ator Johnson declared the Amer
ican people want no appease
ment of communism and will re
fuse to support the United Na
tions if it seats Red China.
The Texas Democrat said the
American people are uneasy over
the objectives and intentions
of their allies. For that reason,
he said, this Government must
decide “whether to continue
along the old lines or to strike
out in new directions.”
“We have to decide what we
will defend; where we will de
fend and how we will defend,”
the Texan added.
Looking across the aisle, Sen-
Senator Butler Death
Throws Nebraska
Politics Into Turmoil
Demise on Final Day
To File for Primary
Stirs Deadline Row
The death of Senator Butler
has thrown Nebraska politics
into a turmoil, with a court test
likely over the method of choos
ing his successor, the Associated
Press reported today.
The Republican Senator’s
death came on the deadline day
Story of Senator Hugh Butler's Death.
Page A-6
for filing for the State’s August
10 primary election.
Traditionally the deadline
has been regarded as 5 p.m. on
deadline day. In this case that
was just a few hours before Sen
ator Butler died.
Filings Attempted.
Before midnight last night,
however, filings were attempted
on behalf of former Representa
tive Howard Buffett of Omaha
and Theodore Maenner, an
Omaha real estate men, seeking
the Republican nomination.
These attempts were expected to
touch off a court test over
whether 5 p.m. or midnight is
the deadline.
In Nebraska, where all State
and national offices are held by
Republicans, a G. O. P. nomina
tion in recent years has been
tantamount to election.
State Republican Chairman
W. W. Spear said unless he is
advised to the contrary he would
assume the 5 p.m. deadline was
the correct one and would there
fore call the State Central Com
mittee to meet to name a candi
Follows Griswold Death.
Under Nebraska law when a
vacancy occurs within 10 days
after the primary filing deadline
State Central Committees of the
two parties have three days to
meet and select one candidate
each for the primary ballot, these
to be unopposed. Democratic
Chairman William H. Meir said
he also planned to call his Cen
tral Committee to meet.
This was the second time in
less than three months that Gov.
Crosby faced the assignment of
(See NEBRASKA, Page A-12.)
French Aims
In Indo-China
Asked by U. S.
The State Department dis
closed today that the United
States is calling on France to
explain its intentions in Indo-
This reflected growing Amer
ican concern over the withdrawal
of French forces from large
areas of Viet Nam without a
When the evacuations were
disclosed yesterday, Henry Suy
dam, State Department spokes
man, said the United States had
not been advised in advance
but assumed France would do so
in the future.
Today. Mr. Suydam said the
United States Government still
had no information but was
making efforts in Paris to learn
the French intentions.
“We are without information
from the French Government,”
Mr. Suydam told a news con
Asked if the Unjted States
wanted information, Mr. Suydam
“Os course. After all, the
Geneva Conference is still in
Asked if the United States had
any information about French
strategy in Indo-China, Mr.
Suydam replied:,
ftenma Star'
U. S. Still Opposes
Red China in U. N.,
Dulles Declares
In a closed meeting with
the Senate Foreign Rela
tions committee today Sec
retary of State Dulles re
affirmed the opposition of
the United States to the
seatihg of Red China in the
United Nations.
But ‘acting Chairman
] Smith, of New Jersey said
there was no discussion of
the Knowland proposal to
withdraw from the U. N.
if the Chinese Reds are
seated over American op
ator Johnson said he welcomed
the speech ol Majority Leader
Knowland yesterday, calling for
an “agonizing reappraisal,” of
foreign policy and expressed the
hope it could be approached in
a completely non-partisan way.
Senator Knowland agreed and
congratulated the Texan on his
Senator Lehman, Democrat, of
New York, announced, however,
he would oppose the seating of
Red China himself, but did not
think the leadership should be
(Continued on Page A-12, Col. 6.)
Six Die as Jet
Hits Car and
Two Houses
By th* Associated Pl.ss
UTICA, N. Y., July 2.—A jet
plane loaded with ammunition
crashed into an automobile and
two houses today and six persons
were reported. killed.
The crash occurred at about
12:30 p.m. (EDT) on the out
skirts of the village of Walesville,
about six miles southwest of
The plane, believed to be from
Grifflss Air Force Base at Rome,
N. Y., was reported to have burst
into flames and set two houses
afire. The plane also was re
ported to have strtick an auto
mobile carrying four persons.
First reports indicated that the
dead were the pilot, the four oc
cupants of the car and a woman
in one of the houses.
22 Reported Killed
In Philippines Quake
By th» Associated Pro**
MANILA, July 2.—At least 22
persons were reported dead and
scores were injured today in a
strong earthquake which jolted
the central Philippines.
The provincial capital of Sor
sogon bore the brunt of the
quake and a police official there
reported 20 persons dead and
enormous property damage. Two
others were killed at Legaspi
City to the north.
Capt. Isagani Abella, com
mander of the Sorsogon con
stabular garrison radioed head
quarters here:
“Twenty persons believed dead
this capital alone. Property
damage enormous. Concrete
fence around our camp and our
radio transmitter station totally
wrecked. Our headquarters bad
ly damaged ...”
Eighty per cent of the old
buildings in Sorsogon, a city of
26,000, were destroyed, Philip
pine News Service said. The
towering steeple on a Catholic
cathedral toppled.
Grave Diggers Strike
SANTIAGO, Chile, July 2 (JP).
—The government called on the
army yesterday to dig graves for
unburied bodies. Santiago’s grave
diggers went on strike along with
other national health service
Do a Good Turn
You Can Join List
Os Camp Contributors
It’s fun to play baseball, even
if you don’t run the bases.
There is nothing unusual
about it at Cardiac Camp. And
a hike with frequent stops to in
spect a plant or woods creature
is fine outdoor fare for a child
with heart trouble.
The camp session from August
19 to September 1 at Camps
Goodwill and Pleasant is geared
to the special needs of children
with heart disease, who are ex
cluded from regular camp ses
You may help the Washington
Heart Association send a child ,
to Cardiac Camp by contribut
ing to the. Evening Star Sum- (
mer Camp Fund. Mail or bring
your donation to The Star build
The following contributions ■
are acknowledged today!
Previously acknowledged _ _ $11,481.54
lir. Fedelman 1,00
Edith Bolling Wilson 36.72
Oliver Metzerott . 35.73 ,
Mr. Be Mrs. C. O. Lewis 15.00
Anonymous 35.72
The Jades Club 20.00
David W. Dreyfus* 10.00 1
Anonymous 10.00
Mrs. p. 1. Rasmussen 20.00
Mabel C. Latimer 10.00
H. M. B. 1.00
Anonymous 10.00 <
O. C. Hoencke, jr 10.00 ,
Anonymous 35.73 1
Anonymous 35.72 i
Mr. Johnson ‘ 5.00 .
Flood Pontiac Co. 37.50 3
Alpha Zeta Omega Pi ,
Auxiliary 71.44 1
National Capitol Post No. 15
of AMVCTS 75.00 '
Jana B. Hodgson 5.00 I
Total to data >11.061.08 1
House Nearing
Roll-Call Vote
On Farm Props
Confidence Voiced
By Both Sides on
Compromise Plan
By Robert K. Walsh
A tense and closely divided
House neared a roll call today
on whether to uphold a tentative
“compromise” vote against
mandatory farm price supports
at 90 per cent of parity.
Republican leaders predicted
that yesterday’s teller vote of
179 to 164 would be sustained.
They conceded, however, that
they might lose a few members
either by absenteeism or un
willingness to go on record on a
roll call.
Democratic leaders said they
were equally confident that a roll
call would reverse what they de
scribed as “a surprising develop
ment.” Both sides hoped for a
final vote on the bill itself this
afternoon to send the measure to
the Senate before the long holi
day week end.
The uncertain “compromise”
amendment would provide for
price supports on six basic farm
crops of between 82 V 2 and 90 per
cent of parity. This was backed
by Republican leaders as a com
promise between the Eisenhower
administration request for flex
ible supports at 75 to 90 per cent
of parity and the drive by House
forces, mostly Democrats, to con
tinue for another year the man
datory rigid farm price supports
at 90 per cent of parity. It was
proposed by Representative Har
rison, Republican, of Nebraska.
Wheat Plan Defeated.
Before reaching the roll-call
stage the House today took up
more than a dozen other pro
posed amendments, most of them
comparatively non-controversial.
A voice-vote majority defeated a
move by Representative Ford,
Republican, of Michigan to strike
the farm bill’s provision for a
“two-price plan” for wheat.
Mr. Ford contended that the
plan would ultimately increase
the price of bread. Under the
two-price plan, wheat producers
would receive the equivalent of
the full parity price for that
portion of their wheat crop that
is consumed domestically. They
also would receive the prevailing
market price for the balance of
their wheat production.
Before the vote on the Harri
son amendment, an overwhelm
ingly loud voice . vote yes
terday rejected a substitute
amendment proposed by Rep.
resentative Heseltop, Republi
can, of Massachusetts. This
was substantially in line with the
position of Gen. Eisenhower and
Secretary of Agriculture Benton!
and called for a sliding scale of j
farm price supports based on
75 to 90 per cent of parity.
Halleck Backs Amendment.
Republican Floor Leader Hal
leck of Indiana wound up debate
on the price supports section of
the bill by defending the Harri
son amendment. He declared
that “we’ll take the political re
sponsibility” if it failed to work
to the best interests of the farm
ers, the country, and the world.
He explained that the Harri
son amendment “eliminates the
90 per cent of parity require
ment, re-establishes the policy
of flexibility and sets a reason
able minimum level below which
we cannot go during the coming
He denied that Gen. Eisen
hower ever proposed “to pull the
rug out from under farm prices.”
He said Gen. Eisenhower has
emphasized that he favors a
gradual move away from high;
rigid farm price supports which i
pile up huge surpluses costing |
the Government millions of dol
Democratic Leader Rayburn,
calling for continuance of the
high supports program in the
interest of all segments of the
national economy, protested that
“you can’t kill this thing just a
little by an 82 & per cent figure.”
Eisenhowers Mark 38th Anniversary
By Allen Drury
It was a hot day in Denver,
too, 38 years ago, Mrs. Eisen
hower confided.
“But,” she hastened to add,
like any loyal Westerner, “you
don’t feel it out there.”
The 38th wedding anniversary
>f the President and the First
Pictures «n Page 8-3.
Lady was suitably celebrated on
the south lawn of the White
House yesterday afternoon to
the clicking and grinding of
:ameras and the amiable com
ments of the White House press
The sun, which everybody
thought might not co-operate,
:ame out from behind the clouds
ibout the time the President
strode purposefully from his of
ice and disappeared within the
nain White House. By the time
le reappeared with his wife, a
souple of minutes later, and
itarted out along the path to
_ Jk
YOU, JOHN l 0 . *
' '
Who Do They Think They're Kidding?
Committee Ends Open Probe
Os Foundations by 3-2 V of e
Chairman Reece Blames Hays' 'Obstruction';
Mrs. Pfost Deplores Lack of Rebuttal
The House committee investi
gating tax-exempt foundations
voted today to hold no further
open hearings. It gave interested
groups 15 days to file written
statements before a final report
is issued.
The vote was 3-2, on party
lines. The Republican majority
nevertheless blamed the decision
on Democratic “obstructionism.”
Representative Reece, Repub
lican, of Tennessee, chairman
of the special group set up by
a House resolution last Septem
ber, said Representative Hays,
Democrat, of Ohio, had used
“obstructionist tactics” at the
public hearings in recent weeks.
Today’s session was behind
closed doors. The committee had
not met for almost two weeks,
following an explosive session at
which Mr. Hays described the
investigation as an “Alice in
Wonderland” project that was
wasting the taxpayers’ money.
Hays Sees Publie Service.
Mr. Hays declared today that
if he was responsible for ending
“this nonsensical and slander
ous attack on the great founda-
Senators and Yanks Fail
To Score in First Inning
The Lineup*.
Yost. 3b McDougald. 2b
Terwllllger, 2b Skowron. lb
Vernon, lb Mantle, cf
Sievers. 11 Berra, e
Busby. Cl Bauer, rl
Runnels, ss Carey. 3b
Umohlett, rl Noren. 11
Fitz Gerald, e Rlzzuto. ss
Schmitz, p Lopat. p
Umpires—Honochlek. McGowan, pap
arella and Chylak.
By Burton Hawkins
Star Staff Correspondent
NEW YORK. July 2.—Johnny
Schmitz and Ed Lopat, veteran
lefthanders, were mound foes
today as the Senators and Yan
kees clashed in the opening game
of a double-header before about
8,000 fans at Yankee Stadium.
Schmitz had faced the Yan
kees twice previously in starting
assignments and both times was
involved in close games, losing
2-1 and winning, 1-0. Lopat was
seeking an eighth win, while
Schmitz was trying for a third
The game was scoreless after
the first inning.
WASHINGTON—Yost tapped
to Lopat. Terwilliger flied to
Noren. Vernon struck out.
NEW YORK McDougald
popped to Vernon. Skowron
doubled to left center. Mantle
struck out. Berra fouled to Yost.
ward the little group waiting in
front qf the old-fashioned iron
bench on the lawn, the sky was
clear and all was welL
It was Mrs. Eisenhower, dressed
in a silk print dress, wearing a
corsage of red and white orchids
and proudly displaying her hus
band’s anniversary gift of a dia
mond pendant, who made the
first comment as the oouple ap-<
“Oh, what a battery!” she
said to the photographers, and
laughed. Her husband grinned.
As they sat down in the bench,
everybody said: "Happy anni
versary!” They both smiled and
said: “Thank you, thank you
very much.”
“Look at one another” some
body ordered, politely but firmly,
and look at one another they did,
with a little grin, which was
promptly recorded by a dozen
exploding flash-bulbs and a
dozen racing pencils.
“Put your arm around her."
somebody else suggested. But
this ha did not do, preferring
4 1
tions I feel I have done a great
public service.”
The Ohioan said the case pre
sented by the staff and by wit
nesses unfavorable to founda
tions “fell of its own weight be
cause of its non-factual basis.”
He added:
“It seems to me the action to
day was the least embarrassing
way for the committee and the
staff to bow off the stage.”
Mr. Hays and the other Demo
crat on the committee, Repre
sentative Gracie Pfost of Idaho,
disclosed that they voted for
continuance of open hearings
merely to give spokesmen for the
foundations an opportunity to
answer earlier testimony. '
“Unfortunate,” Says Mrs. Pfost.
“The shutting off of the hear
ings is very unfortunate because
the foundations should be eligi
ble to present their side in public
hearings just as the staff officials
and opposition witnesses did,”
Mrs. Pfost said.
Republicans on the committee,
in addition to Mr. Reece, are
Representatives Walcott of Mich
gan and Goodwin of Massachu
Late News
Rhee Invited Here
South Korean President
Syngman Rhee has been in
vited to come here for con
sultations on the future of his
country and other Asian prob
lems. The invitation re
portedly was extended by
President Eisenhower, and Mr.
Rhee is understood to have it
under consideration.
Martial Law Ordered
For Oklahoma Voting
By th* Associated Pr«,s
Gov. Johnston Murray today
declared martial law in five
Eastern Oklahoma counties for
next Tuesday’s primary elections.
Counties covered by the order
are Pittsburg, Sequoyah, Adair,
Leflore and Cherokee.
The order followed an investi
gation into reports of voting
irregularities in those areas of
the State. An absentee ballot
buying ring was cracked re
cently with the arrest of six
persons charged with buying and
selling votes in one county.
i instead to sit with his arms
folded until Mrs. Eisenhower
finally tucked her left hand
firmly under his right elbow and
held on hard.
“Was it a hot day in Denver
38 years ago?” a reporter asked.
“It was a mighty hot day.”
she said. “But you don’t feel it
out there.”
“May we have you standing
up?” a cameraman asked. They
stood up.
“Can I get one more of you
sitting down?” another camera
man asked. They sat down.
Finally, Assistant Press Secre- #
tary Murray Snyder said, firmly:
“That’s all, gentlemen.”
“Thank you,” everybody said.
‘•You’re welcome.” they said.
Then, with her hand still
firmly tucked under his arm. the
President and the First Lady of
the land turned and strolled
slowly, as though they were all
alone, along the rose garden path
to the White House, 38 years
from their wedding day In
Water Skiing
* "Mushing” and “klushing” are both
hazards of the fabulous summer sport,
water skiing* But, It’s still easy to learn
anil fun to do, says one teen-ager In
Teen Scene on
Page B-4.
«■ Closing Thursdoy~Markets, Page X-13
Home Delivery. Monthly Rate*. Evening and Sunday. $1.75; SP f'ITXTT'C!
Evening* only. $1.30; Sunday only. «6c: Night Pinal. 10c Additional * 10
Sunny, Hot Week End
Hay Be Broken Only
By Scattered Showers
56,000 Cars to Quit D.C.;
430 Holiday Highway
.Deaths Foreseen for U.S.
Sunny skies for most of the
long week end are expected to
lure thousands of Washington
residents to nearby resort areas.
Weather observers looked for
a hot period, with a few scat-
Detailed Weather Forecast for Nearby
Resort Areas. Page A-2
Summer Closing Hours for District and
Area Stores Announced. Page 1-12
tered thunderstorms likely Sun
day. Any rainfall was expected
to measure less than an inch.
Traffic Director George ,E.
Keneipp estimated 56.090 auto
mobiles will leave the city head
ed for the beaches or the moun
tains. Countless others will leave
by plane, train and bus. The
airlines look for traffic 25 per
cent more than normal.
Those with an opportunity to
get away early were to find the
afternoon traveling weather hot.
Another above 90-day is pre
The American Automobile As
sociation said that most of the
automobye travelers will be
headed for Wildwood, Ocean City
and Rehoboth beaches, the Sky
line Drive and the Poconos, and
Williamsburg, Va. The AAA
travel department is advising
against further plans for Wil
liamsburg, since an reservations
there are solidly booked.
Yesterday’s brief storm al
layed the heat temporarily,
tumbling it from 94 at 3:20 p.m.
to 76 around midnight. The
storm did some damage in
Southeast Washington, blacking
out some areas briefly. There
was hail reported in Chevy
Predictions of heavy travel
brought holiday safety warnings !
from the Red Cross, the Ameri
(See HOLIDAY, Page A-12.)
Seven Are Reported Killed
In Israeli-Arab Shootings
By th* Attociated Pro**
JERUSALEM, July % 2. —Seven
persons were reported dead and
51 wounded as sporadic shooting
continued throughout this di
vided city today in spite of a
cease-fire ordered by a United
Nations group.
Jordan spokesmen said cas
ualties on the Arab-held side of
the cit/ totaled five dead and 23
wounded since the shooting
broke out Wednesday night.
Israeli authorities counted two
dead, including an Israeli sol
dier hit by a sniper on Mount
Zion this morning, and 28
Mortars, machine guns and
rifles have been used by both
sides. Each side blames the
Both Israel and Jordan pro
tested to the United Nations
Mixed Armistice Commission,
charging aggression. Danish Maj.
Gen. Vagn Bennike, chief of staff
for the U. N. truce observers,
asked each side to order an un
conditional halt to the firing
and punish snipers.
Protesting today’s incicient, an
Israeli army spokesman charged
an Arab soldier on the old city
walls picked off the Israeli sol
dier as he went about his normal j
duties. First aid parties werej
prevented from recovering the
body, the spokesman said.
Comment on the incident was
not immediately available from
Senate Hoping
For Passage of
Tax Bill Today
Speed Expected on
Promise of Recess
Until Tuesday
By J, A. O'Leary
The Senate met at 10 o’clock
this morning in another effort to
finish the big’ tax revision bill,
after failing to pass it in a 13-
hour marathon session yesterday.
When weary Senators called it
a day at 2 minutes before mid
night, only a few amendments
remained. The promise of a
week-end holiday recess until
Tuesday was expected to hasten
passage today.
The king-size measure, rewrit
ing thousands of sections of the
tax code for the first time since
the gay nineties, will then go to
a joint conference with the House
to settle differences.
One of the biggest differences
came unexpectedly yesterday
when 71 Republicans and Demo
crats joined in knocking out most
of the special relief for dividend
income approved by the House.
Only 13 Senators stoed by it.
Higher Exemptions Beaten.
The sudden reversal on this
issue was an aftermath of the
defeat Wednesday of two moves
to give low-income wage earners
a further tax cut through higher
exemptions. Most Senators de
cided they could not justify vot
ing relief for stockholders after
turning down wage earners
Then they rejected a third at
tempt, by Senator Long, Dem
ocrat, of Louisiana to give every
taxpayer a S2O cut on his income
tax bill, whether he lives on
dividends or wages. This failed
50 to 33.
The Senate approved another
amendment which would deprive
tax-exempt organizations of
their exempt status if they con
tribute to any movemenet which
appears on the Attorney Gen
eral’s subversive list. It was of
fered by Senator McCarran,
Democrat of Nevada.
Depreciation Rules.
The Senate refused, 60 to 20,
to knock out the new deprecia
tion rules recommended by the
administration to aid business
expansion. They would permit
industry to charge off more of
the cost of machinery in the
early years of its use. Senator
Morse, independent, of Oregon,
moved to eliminate it.
The Senate had trouble mak
ing up its mind about tax relief
for widows and widowers with
dependent children. It first put
back a House provision allowing
single persons who qualify as
heads of households the same
income-splitting privilege given
married couples. Later it elimi
nated the amendment again.
But, since the House has ap
proved it, the conferees may still
consider it.
In an effort to ease double
taxation of dividends, first in
the corporation tax and later on
the returns of the stockholders,
the House adopted a relief plan
as follows:
In the first year of the bill,
recipients of dividend income
could exclude the first SSO and
claim a 5 per cent credit on
the remainder of such income.
After the first year the deduc
tion would have been SIOO and
the credit 10 per cent.
Whittle Away at Plan.
When the Senate got through
whittling away at the plan yes
terday all that remained was
, the SSO deduction in any year,
with no credit against the re
mainder. This question also is
still subject to further compro
mise in conference.
Senator Humphrey. Demodrat,
of Minnesota got an amendment
adopted to provide farmers with
tax incentive to build grain
storage bins. It would allow the
cost to be written off in one in
stead of three years.
By correcting numerous in
equities. the bill gives taxpayers
more than $1 billion of tax re
lief, in addition to more than
$6 billion of tax cuts which al
ready have taken effect this
Toronto Fare Up to Dime
TORONTO, Ont.. July 2 UP).—
Now it costs a dime to ride the
4% miles of Canada’s first and
only subway. The fare Jumped
yesterday from the 8 ! / 3 «cents in
effect since the Toronto system
opened three months ago.
Get-Well Messages
To Harry Truman
Winston Churchill sent three tele
grams to ex-President Truman, who is
Ml in a Kansas Gty hospital, his wifa
reported in a telephone interview.
See Page 1-3. *
NEW DRESSES-Now that fashion
has taken an a dual personality yea
can get more for your money and
make outfits pinch-hit in many ways,
says Eltni, The Star's fashion editor,
on Page 1-5.
Guide for Readers
Amese'nts A- IS- 19 Lest, Found _ A-3
Classified I-12-22 Music 1-7
Comics A-22-23 Obituary ... A-12
Crossword ...A-22 Radie-TV A-20-21
Editorial A-10 Sports __:A-14-17
Edst'l Articles A-11 Women's
Financial A-13 Section .. B-3-i

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