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Salt Lake Tribune, The (Newspaper) - February 22, 1949, Salt Lake City, Utah RADIO NEWS am am pm Intelmountain Network Station KALL Monday Through Friday WEATHER Partly cloudy Tuesday con tinued warm Details on Page 16 VOL 158 NO 131 SALT LAKE CITY UTAH TUESDAY MORNING FEBRUARY 22 1949 PRICE FIVE CENTS House Gets Trumans Social Security Plan Vast Reform Would Boost Rolls By 20 Million Hike Benefits WASHINGTON Feb 21 Harry S Trumans program for a vast broadening of social security benefits bringing additional millions of persons under the system and increasing the payments and taxes was unfolded on Capitol Hill Monday The legislation would bring an additional 20000000 Amer CLEAN SWEEP Hoover Asks U S Reform Acheson Unit WASHINGTON Feb 21 The Hoover Monday for commission called a thoroughgoing overhaul of the state department headed by Dean Acheson and broad revisions in this countrys machinery for dealing with foreign relations Among other things it said Pres Harry S Truman should have a freer hand in directing such re lations and a better setup for getting sound advice It also said that the constitu tional requirement of a twothirds vote in the senate to confirm treaties is a serious trouble breeder although it did not spe cifically suggest a change States Low Esteem In calling for a major shakeup of the state department the com mission declared that the depart ment has fallen to a level of low esteem with congress the public the press and many of its own officials The commission headed by former Pres Herbert Hoover cited the departments intelligence branch as the weakest and least effective of its units As for the departments low rating the commission j said it resulted from an intolerable icans into the old age and sur vivors insurance system making a total of 50000000 under this setup The retirement age for women workers would be reduced from 65 to 60 The maximum insurance benefit would be boosted from to a month and in addition the bill would provide direct federal aid for all needy persons It would also hike the old age insurance tax rate from the pres ent 1 to 15 on the first of an employes pay check and the employers pay roll next July 1 Under the present law the in crease is not due to begin until Jan 1 1950 The rate would jump to 2 against the first of an em ployes pay and employers pay roll next Jan 1 Cover 100 Pages The administrations proposals were embodied in two bills cover ing more than 100 pages The measures were introduced by Chairman Robert L Doughton D N C of the house ways and means committee Major features would provide 1 Direct federal financial as sistance not only for the needy aged the blind and for dependent children as at present but for all needy persons This is distinct from the old age insurance sys tem under which workers and their employers are taxed so the workers can draw benefits when they grow old 2 Benefit payments for short periods of and for ex tended periods of disability when a person is unable to work Doughton told newsmen he in Byrnes Unit Asks Guard Reserve Level of 1 Million WASHINGTON Feb 21 UP A special army committee headed by former Secy of State James F Byrnes Monday night recommended an increase of the national guard and organized army reserves to 1054300 men and the use of the draft to reach the new goal The proposed new total would boost the nations planned armed strength including regular forces and all reserves from about 2140000 in fiscal 1950 to 2589300 The Byrnes committee report deals only with national guard ground forces and army reserves It does not touch the air national guard or air or navy reserve units overload of foreign aid arid other special tasks heaped upon the shoulders of the secretary of state and the undersecretary Too Great Burden Because of this burden it said the nations top diplomats have little time for thoughtful and considerate reflection on foreign affairs problems Moreover it said in a report to congress under existing conditions Pres Truman has only a partial and limited perspective in reach ing grave decision on foreign af fairs It renewed a suggestion that the White House should set up a series of special cabinetlevel commit tees to advise the president on specific important issues In general the report declared that American machinery for deal ing with other nations is full of flaws and loose play troduced the administrations measures for the committee to start work on He took no stand for or against the various pro posals Present Program Official Urges Million Mail Rate Hike WASHINGTON Feb 21 UP Jesse M Donaldson Monday proposed increases in all classes of postal raise an additional in revenues In a letter to House Speaker Sam Rayburn Donaldson recom mended the rate increases to meet Pres Harry S Trumans request that the postal deficit be reduced to a reasonable level He said the deficit for fiscal 1948 was for 1949 it is ex pected to be and by 1950 it still will be about 000000 unless rates are raised Donaldson said the post office Is handling the greatest volume of business in its history with record revenues of ex pected this year But he said present rates par ticularly for second and third class mail and post cards do not cover costs He pointed out that even with the proposed increases the deficit for fiscal 1950 will still be about But he said this represents official penalty mail franked mail airline subsidies and other costs not properly chsrge The legislation proposes that the present old age and survivors in surance program be expanded to include a wide range of workers such as farmers small business mendoctors lawyers and other selfemployed persons now exempt It would also bring in federal em ployes not now covered under a federal retirement plan The legislation would repeal the socalled Gearhart resolution by which the administration claims 750000 independent salesmen were excluded from the program There now are approximately 30000000 persons under the old age and survivorsinsurance pro gram The other 20000000 or so workers were not included in the original program because no work able basis could be found then to administer a program for them The new measure provides that beginning with the taxable year 1949 the contribution rate on the self employed would be Disability Benefits Temporary disability benefits are not provided for the selfem ployed because of the difficulty of determining income lost by them over short periods of time The social security administra tion had this to say about the taxes Contributions levied in the bill are intended to be sufficient to cover the cost of benefits for next five to 10 years depending upon economic conditions Thereafter either the rates will have to be raised or the government will have to supplement the trust fund from general revenues or both The legislation would boost the maximum monthly insurance bene fit from to Lange Warns Pact Delay Perils Norse WASHINGTON Feb 21 A highly placed source said Mon day the United States would give assurances in the proposed North Atlantic pact that she would not stand idly by if any of the signers is attacked The exact languageof the prom ise remains to be worked out in final form but tho assurance ap parently was enough for Norway At Oslo Foreign Minister Hal vard M Lange announced that Norway would pin her security to the pact This decision is in the face of Russian demands for Nor way to stay out of the proposed security alliance Leader Gives Assurance The informant who spoke of the assurances to be given in the pro posed treaty is an administration leader in congress who cannot be further identified He said a clause in the treaty will leave no doubt about this nations determination to resist aggression In England and elsewhere con siderable dismay had been ex pressed when senate foreign policy leaders made it clear about a week ago they would not go along with an automatic war clause in the treaty Chairman Tom Connally D of the senate foreign rela tions committee and Sen Arthur H Vandenberg R be lieve such a clause would bypass congress right to declare war Reach Understanding But an official said Monday Secy of State Dean Acheson has reached an understanding with the foreign relations committee on the nature of the assurances Acheson is scheduled to meet within the next day or two with representatives of Canada and the European countries taking part in the talks The State department hopes to present the pact to congress in a month and to back it up with a multibillion dollar military aid pro gram for western Europe Norways decision to go along with the west had been generally anticipated Foreign Minister Lange told a news conference in Oslo that bitter experience has convinced his country that neu trality and isolation will not pro tect her He cited the German in vasion of 1940 Push Arms Program With the final treaty talks ap proaching the State department went ahead with plans for the arms program expected to supply more than worth of armaments to Europe The amount would include surplus army stocks now on hand The program is expected to call for appropriation of more than in the first year Unlike the alliance such a pro gram must have the approval of the house and senate The north Atlantic pact will be presented as a treaty requiring twothirds ap proval of the senate Morse Hangs Judas Tag On TH Bloc Sol011 Says Elements In Favor Have UiiChristian Views WASHINGTON Feb 21 Sen Wayne Morse R Ore said Monday the attitude of many de fenders of the TaftHartley labor act is a Judasbetrayal of the capitalistic system In a sudden onslaught against many of the business spokesmen who have appeared before the senate labor committee Morse de clared their attitude is shocking selfish classconscious unChrist ian But in contrast to these acid words he praised Sen Robert A Taft R whose name the law bears for his fairminded ob jectivity in considering testi mony on the of the TaftHartley act Much Nearer Morse said he and Taft are much nearer together on the need for a law less drastic against labor than they were in 1947 when TaftHartley act was passed He issued a statement from his office while the senate committee was hearing more testimony in defense of TaftHartley provisions Hearings have been going on for three two more days to the Truman administra tions proposal to junk the present law and substitute a measure much closer to the original Wag ner act Favors Middle Ground Morse favors a middleground approach between the TaftHart ley act and the administration proposal He and Taft and Sen Irving M Ives R N Y are attempting to agree on a bill which would solidify senate Re publicans for the floor battle ahead Although Morse did not name any individual witnesses he banged hard at the National As sociation of Manufacturers and the U S Chamber of Commerce The chamber of promptly challanged point to any evidence that it has displayed the unChristian at titude that labor is a commodity to be bought as cheaply as pos sible SL Jury Convicts Lack Of Liquor Embezzlement commerce Morse to Court Schedules Sentence Of ExOperator March 5 Cyrus V Lack 56 was found guilty by an eightman jury Monday at pm of the embezzlement of 308 bottles of stateowned liquor valued at The jury which received the case against Lack at pm deliberated about three hours being out for dinner between 6 and 7 pm NLRB Ruling Gives DAW Bargain Club DETROIT Feb 21 IO United Auto Workers were given another club Monday to ise in forthcoming bargaining vith the auto industry The weapon was a Washington uling by the National Labor Re ations board It held General VTotors Corp guilty of an unfair abor practice for attempting to aunch a group insurance program vithout consulting the U A W But the millionmember Auto Workers union may never need o use the decision to back its 1949 demands for pensions and medical care plans It had pressed he case only for reserve strength f needed Awaits Court Ruling Walter Reuther U A W presi WORKING IN DARK U S Faces Major Problem On Atom Bomb Protection WASHINGTON Feb 21 Government officials said Mon day they havent been able to figure out a way to tell Ameri able to users of postal service not everyone Donaldson would not change the 3c rate for letters or the 6c rate for airmail But he asked the fol lowing changes 1 Post cards and government postal cards up from Ic to 2c to produce a year 2 Second class matter mailed by publishers graduated in creases to bring in the first year and another the second year the rates are in effect Pieces not mailed by pub lishers would be 2c for the first ounce instead of as at pres ent 3 Third class mail would be grouped as a single unit at 2c for the first two ounces plus IVzC for each additional with no spe cial rates for bulk mailings to protect themselves against Abombs Their dilemma atomic energy commission officials said is how to spread the information in this country without letting the whole world in on it Carroll L Wilson commissiori manager conceded the agency has no plan for protecting a major defense area such as Norfolk Va in the event of an Abomb explosion there And Commissioner Lewis Strauss commented The best protection is to be somewhere else when a bomb goes off The issue was raised by mem bers of the congressional atomic energy committee Rep Chet Holifield D Cal said that since taxpayers are paying about a half billion dollars a year for atomic developments they should know how to protect themselves against a bomb Rep Carl T Durham D N C said the information should be given out in every public school If you do that Committee Chairman Brian McMahon D Conn said other people wil know how to protect themselves Wilson agreed and said that is the commissions dilemma Wilson said the commission is trying to induce contractors to develop a rugged reliable instru ment to detect radiation It would have to be capable of operation by anyone without prior instruc tions he said The agency is now working with the armed forces on a book let on radiation which may be ou within three or four months Wil son said Has Just Begun to Fight Convicted of embezzlement Cyrus VvLack pledged that he has just begun to fight The former operator of Brigham Street Pharmacy liquor agency was indicted by grand jury convicted in Third district court jury trial after six days of testimony He will appeal case AMPUTATION OPERATION Fiscal Surgery Stymies Utah Budget Doctors By O N MALMQUIST Unable to agree on the victims for the cutting job that will have to be done to bring the states budget safely within anticipated revenues the joint appropriations committee of the Utah legislature recessed Monday evening until Wednesday at 9 am to give mem bers a chance to ponder alterna tives or to steel their hearts to a painful job of fiscal surgery When the committee recessed tentative appropriations plus def icits incurred during the present biennium added up to from the general fund from the emergency relief sales tax fund from the dent disclosed only Saturday that highway fu and from r lis union is counting on a favor able U S supreme court ruling soon in a similar case This one was brought by the i I O United Steelworkers against Inland Steel Although it directly concerns only the matter of pen sions Reuther said he expects the decision to be broad enough to cover medical care plans and life insurance as well An aid to Reuther informed of Mondays ruling said it would make a handy supplement to the Inland Steel case if the high court decision is limited to pen sions Reuther also said over the week end that the U A W would ap proach General Motors on pension and social security issues this year as soon as the supreme court rul ing is made and a pattern has been set at Ford or Chrysler CostofLiving Pact He admitted that under the twoyear G M pact extending to 1950 no overtures could be made to change the automatic costof living wage arrangement The 270000 G M workers are expect ed to take a two or three cent an hour pay cut when the next ad justment is made March 1 Other than providing the U A W another weapon the NLRB de cision will have little effect on either General Motors or the union G M abandoned its insurance plan for hourlypaid workers after NLRB General Counsel Robert N Denham obtained a court in junction against the company early last year The NLRB based its unani mous ruling on a TaftHartley law provision requiring employers and unions to meet at reasonable times and confer in good faith with respect to wages hours and other terms and conditions of employ ment other special funds for a total of a little less than Anticipated Revenue Anticipated revenue to the gen eral fund is or 000 less than the tentative allot ments from that fund Some of the committee members feel that the revenue estimate is too high That estimate incidentally includes about from the mine occupation tax reserve fund and the it is expected to receive during the next taienniurn Anticipated revenue to the emergency relief fund based on the present level of sales is 000000 or approximately 000 more than tentative appropria tions from that fund But on a basis of the tentative allotments of this would have to be transferred to the gen Angry Jeivs Defy Guns to Halt Movie in Berlin BERLIN Feb 21 Angry Jews defied warning po lice shots and highpressure fire hoses Monday to storm a theater and prevent a showing of the British motion picture Oliver Twist on the ground that the portrayal of Fagin as a Jew is antiSemitic Three persons including an American correspondent were injured in the melee It was the second time in less than 24 hours that Jews in Berlin have expressed violent protests over the motion picture Sunday night they halted a showing of the picture by yelling stamping their feet and ripping upseats in the theater era fund to bring that into bal ance This would leave virtually nothing for a building fund for ivhich there is an insistent clamor Tentative Budget In other words the tentative Budget as now set up would take all general fund revenues virtually all anticiapted sales tax funds and clean out the mine occupation tax reserve fund And many of the committee members are fearful hat the revenue estimates for both he general and emergency relief funds are overly optimistic Most of the committee members are adamantly opposed or very re uctant to cut the tentative allot ments set up for the states insti iutions of higher education But when they recessed several said hey had come to the painful con clusion that they either would lave to start cutting the recom mended appropriations or increase taxes either by raising existing levies or imposing new taxes Welfare Grants The question of how much to give for welfare assistance grants created the most fire in the com mittee A subcommittee recom mendation that for the next biennium was accepted only after a minority of the committee had proposed the amount be in creased by Move to increase the welfare allotment was made by Rep Ernest H Dean D Utah who said we cant intelligently dis cuss the amount for welfare until we find out what happens to the present lien law The house opened debate Mon day afternoon on a bill to repeal the welfare lien provision and to remove legislatively set maximums on amounts of grants Sen Mitchell Melich R Moab spoke against hiking welfare ap propriations We owe as much to the remain ing 98 of the citizens of the state as we do the 2 over 65 and on welfare he said The money is not here Sen Marl D Gibson D Price reviewed the rising costs of wel fare in the state Other legislative news on page 10 It must not be allowed to go on to consume the state he sedd Rep Justin C Stewart D Salt Lake said that the ap propriation was inviting a special session adding perhaps its time to look for a new source of reve nue rather than curtailing wel fajre grants Dist Judge Albert H Ellett set sentence of the former operator of the Brigham street pharmacy package agency for March 5 and Glen S Hatch chief defense coun sel announced that he would move for a new trial Smllcii at Prosecutors I have just begun to fight I have just begun to fight said the five footfive inch defendant after court had been dismissed Lack smiled at the states Dist Atty Brigham E Roberts and Special Prosecutor Clifford L Ashton as he left the courtroom Judge Ellett had said that if the jurors failed to reach a verdict by midnight they would be taken to a hotel for the night to resume their discussions on Tuesday However when the jurors re turned to the courtroom at 6 pm to prepare for dinner Judge Ellett inquired as to their progress Er nest W Hjortsberg 1525 West minster ave the jury foreman re ported that he and his associates anticipated they would be able to return a verdict within a reason able time Other Jury Members Serving with Mr Hjortsberg were Frank Augutter 486 G st Albert B Carpenter 614 Roosevelt ave J H Gerstner 550 Cheyenne st Clyde Hibbard 6051 S State Peter Loscher 1939 S 8th West Harry G Meyer 21369th East and T W Withers 1462 Beck st It was on March 2 a week less than one year that Lacks Brigham street pharmacy package agency reportedly was burglarized arid some 200 to 300 cases of liquor stolen Police early in the investigation stamped the story as a fake charging that Lack sought to cover up huge shortages Auditors from the Utah liquor cdhtrol cpmmission and from the state auditors office fixed the shortage at more than and the Salt Lake county grand jury indictment of Lack was returned April 19 1948 Pleaded for Acquittal In winding up their arguments earlier Monday Defense Attys Glen S Hatch and Glen M Hatch father and son pleaded for their clients acquittal and pointed the finger of guilt at E M Rogers former bookkeeper for the Brig ham street agency and one of the states witnesses Rogers came from Fort Worth Tex to testify But Dist Atty Roberts in the states closing arguments said to the jurors that Lack is the culprit in this trial and contended that opposing counsel were resorting to an old device Their defense is to convict any body but dont convict Lack he argued Convict Robers convict the liquor commission but dont convict Lack But the funny thing is that Lack is on trial I re call they mentioned in the Harries trial convict Lack but dont con vict Harries Lets take these guys as they come Well take care of Rogers when the time comes Right now were looking down the throat of Lack and its up to you to deter mine whether he embezzled state owned whisky valued at more than Protect Mr Ashton who opened for the state argued that Lack if he were only a little man in the deal as the defendant testified could nol have engaged in the wholesale dis Sce Page 10 Column 1 House Liejuor Group Asks Utah Changes By RICHARD A SQUIRES Reorganization of the state li quor control commission enforce ment of laws on a state level and removal of any doubt as to the il egality of present locker systems vere proposed in two bills intro duced Monday by the house of epresentatives committee on liq uor The committee also recom mended 1 That the legislature not sub mit a referendum to the people on the question of sale of liquor by the drink 2 That no member or employee of the liquor control commission or county and city commissions city council or town board of trustees nor any enforcement officer of the state or its subdivisions be inter ested or engaged directly or indi rectly in the liquor business Federal Stamp 3 That it be unlawful for a per son who holds a federal retail iquor stamp to be grknted or hold a Utah state beer license The fed eral government requires that all clubs now using the socalled locker system purchase a federal retail liquor stamp RepJames E Faust D Salt committee chairman said the bills and recommendations had the unanimous indorsement of the sevenman bipartisan house group He said the committee had heard and studied the recommendations of several groups including Gov J Bracken Lees committee to inves tigate liquor with which the house group differed two major items referendum and state level liquor law enforcement Under the reorganization pro posed a bipartisan 7man non paid board and executive manager would replace the present three man commission setup The board to be appointed by the governor with the consent of the senate would have terms staggered from one to seven years Appointee of Board The manager would be an ap pointee of the board not more than four of which shall be members of the same political party Board members would be appointed one from each of the states seven judicial districts Members would be paid per meeting not to exceed per month and travel expenses Other amendments proposed to the law would tighten enforcement provisions and clarify sections that according to a recent attor ney generals opinion make tho present locker system of handling liquor in old line clubs illegal In the committees report Rep Faust said that the committee found that on the whole the present liquor law is a good law He suggested that an interim study of the entire liquor question af fording a more leisurely approach to the problem might be in order Other members of the house committee are Rep J Frank Mar ble D O W Young D A I Tippetts D San Clifton G M Kerr R Box Merrill K Davis R Salt Lake and Edwin Q Cannon R Salt CAPITOL CALENDAR Highlights of Days Action In Utahs Senate House Highlights of Mondays session in Utah legislature Appropriations Committee Combed through a tentative budget looking for two or three million dollars of fat to cut out but found only two or three hundred thousand Recessed until 9 am Wednes day to give committee members a rest after a heavy schedule of ses sions over the week end The Senate Approved submission of a pro posed constitutional amendment to empower the legislature to fix the salaries of its members without limitations Killed a senate bill to set up a state board of fire prevention and state fire marshal Passed bills to increase the terms of elective officials in sec ond and third class cities from two to four years and to provide for the registration and licensing of dential hygienists Adjourned until Wednesday at 10 am to permit members to visit Geneva steel plant Tuesday The House Opened debate on a bill to abol ish welfare liens maximums on grants and soften present resi dence requirements for relief ap plicants Passed a bill setting up a joint registered and licensed practical nurses board with a proviso ex empting unlicensed practical nurses from meeting special board requirements
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