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Salt Lake Tribune, The (Newspaper) - March 29, 1949, Salt Lake City, Utah RADIO NEWS am am pm latermonnttln Network Station KALL fMondij Thranili Frldij WEATHER Partly cloudy north portioir Tuesday snow in south Details on Page 18 VOL 158 NO 166 SALT LAKE CITY UTAH TUESDAY MORNING MARCH 29 1949 PRICE FIVE CENTS Deer Creek Project Gets 15 Fund Cut House Appropriations Council Slashes Interior Budget Bill o By HARRY BROWN WASHINGTON March Deer Creek irrigation proj ect took the same 15 cut in the interior department appropria tion bill that was handed by the house appropriations committee to all other fund requests for irrigation projects Instead of the which the budget had recommended the house appropriations committee in reporting the interior bill Monday allowed for Deer Creek but this amount still is greater than the ap Federal Plans For Power Stir Dispute WASHINGTON March 28 propriation made a year ago This does not take account of the JOOO to 5500000 which is carried in the deficiency bill still pending in the senate Funds for Completion If the senate restores to the in terior bill the full rec ommended by the budget future congresses still must appropriate to complete the Deer A new battle over the old issue of j Creek project government power projects was During hearings on the bill the forecast Monday whenthe house j reclamation bureau explained that appropriations committee indorsed a big transmission program It is with a new appropriation of 000000 they svould during the coming fiscal year complete the wrapped up in the Interior depart1 enlargement of the Provo reser ments money bill for i voir canal and Jordan Narrows siphon which will assure delivery of water to 40000 acres of land The WeberProvo canal enlarge ment will provide conveyance for flood waters from Weber river to Provo river during the high water period each year Insure Full Aqueduct These funds will insure virtual completion on the aqueduct divi sion of the 83 miles of pipeline in Salt Lake county and 55 miles of pipeline in Provo canyon The bureau also expects to resume ex cavation and lining of the Du chesne tunnel a unit whose com pletion is now scheduled for 1953 The printed hearing on the in terior bill made public Monday disclosed that Rep Michael Kir wan of Ohio new chairman of the interior subcommittee was all hot and bothered over the discov the year starting July 1 Debate may begin in the house Tuesday Republicans fought the outlay in the committee and said they havent given up Rep Jen sen R la said the bill moves toward government control of all utilities Expansion of Power The legislation provides expan sion of power production and transmission facilities in the vari ous governmentowned projects of the west southwest and norht west The committee trimmed 15 in general from most power and other construction projects in the bill The committee figured that costs are lower than when the program was mapped out but it advised department officials to ask for more appropriations if the cost drop failed to pan out as ex pected i ery that some of water from The transmission plans were ap proved virtually in full Jensen aaid the bills power features ryrill force some private companies to sell out to the government Contract Authority The departments total S24408 includes in new cash and in con tract authority which may require future appropriations The figures are less than Pres Harry S Truman proposed but more than the department got last year Mr Truman had proposed 805020 in cash and in contract authority As approved the bill recommends more than congress voted for the present fiscal year The Reclamation bureau under which many power projects oper ate would receive almost half the cash an increase of over the present year Power Agencies Two other power agencies out side the reclamation authority were marked up for additional mil ilions They are Southwestern Power Deer Creek reservoir is beingsold to the Geneva steel plant Geneva Water Sales He thought this was an out rage sjid charged that the bu reau had concealed the fact that it was selling water to the Geneva steel plant although this fact has been repeatedly alluded to in the hearings each year There is enough water out Rent Conferees Approve Landlord Return Here to Seal Tie to West Countess and Count Carlos Sfora Italian foreign minister stand on ramp leading from airliner after arrival Monday from Paris The minister flew to New York to sign the north Atlantic security pact Italys Envoy Flies to U S To Sign Treaty April 4 WASHINGTON March 28 i ministers tentatively scheduled to Italys Foreign Minister Carlo link their countries into Uie Sforza arrived in the United States I Americanbacked security pact Monday to add his country to the Within a few hours after arriv roll of western nations about to sign a defense alliance Sforza landed by plane in New York the first of 11 foreign there to irrigate Utah if that steel plant did not take it said Mr Kinvan adding that it takes 25 000 gallons of water to make one ton of steel He objected strenu ously to the government furnish ing water to the Geneva plant When the matter was sifted down it was shown that under a tempo rary contract with the Salt Lake metropolitan water district some of the water which the district has contracted for but cannot use un til the aqueduct is completed is being sold to the Geneva steel mill Utah Lake Source The steel mill can secure up to a maximum of 15000 acre feet an nually but derives most of its water from Utah lake and has never yet purchased the full amount to which it would be en titled under its contract with the metropolitan district It was fur ther explained that when the aque duct is completed the contract with the steel company will be termi nated because the city then will not have that much water surplus It also was shown that the Ge neva steel plant already has drilled deep wells to augment in the fu ture the water it draws from Utah lake The interior bill carries for the Ogden river project which also is 15 below the budget re quest The bureau estimates that this appropriation will complete this project during the coming fiscal year Principal work re appropriation The same amount i maining in 1949 is completion of was voted last year See Page 2 Column S adminis tration distributing power from several dams in the southwest in cash and contract authority or less than requested Bonneville Power administra tion marketing power from the Bonneville project in Oregon and Washington in con tract authority and cash a reduc tion of from the amount asked The Interior bill also covers the Indian bureau National Park serv ice Fish and Wildlife service Bureau of Mines territories and other offices To continue reclamation bureau investigations in Alaska the com mittee recommended a A VIVID BACKDROP Soviets Honor Gorky at 81 Press Cites His N Y Blast MOSCOW March was the 81st anniversary of Maxim Gorkys birthday and Pravda de voted most of its inside pages to that event republishing a com plete text of Gorkys vivid sketch City of the Yellow Devil written on his visit to New York in 1906 The brick stone dirt and noise ofthe city depressed Gorky He wrote entering the city you feel as if you had fallen into a stom ach of stone and stomach which swallowed several million people and is digesting them Called to life by the force of gold it surrounds man in its web stifles him sucks his blood and brains devours his muscles and nerves and grows Supported by silent stone ever more widely it extends the links of its chains Locomotives crawl like huge worms Like fat ducks auto horns bonJc Klectncitjr hums dejectedly The stifling air is saturated like a sponge with thousands of pierc ing noises The air is pressed to the dirty city soiled with thf smoke of factories motionless among high walls covered with soot On big and little squares where the dusty leaves of trees hang listlessly from branches rise dark monuments coated with a heavy layer of dirt These bronze people dead and lonely in a maze of many storied buildings seem like dwarfs in the black shadows of high walls1 Lost in the chaos around them they stand halfblind and with aching hearts gaze at the hungry rush of people Gorkys artistry provides a vivid backdrop to Pravdas readers They find a revealing contrast between the warmth of the life they know and the devitslized New Yorkers Senate GOP Hurls Fresh Blast At ERP Program WASHINGTON March 28 Republicans fired another round of criticism at the European Recovery program Monday as debate on the ad ministrations 15month 000000 renewal bill moved slowly toward a vote The senate is expected to vote by midweek Meantime a simi lar bill was cleared for house action starting Wednesday by the rules committee In the forefront of the senate fight was Chairman Robert A Taft O of the GOP policy committee who is leading a drive to knock some 000 off the foreign spending budget Europe Makes Initial Step Toward Unity LONDON March 28 rope took a first step toward unity Monday when 45 diplomats from 10 of its states met in a small room in the British foreign office to write constitution for the Council of Europe In their first communique the diplomats said that within a few hours they had reached large measure of general agreement on the main principles Itadded There are many matters of de tail still to be settled Take 10 Days The task of writing a constitu tion is expected to take about 10 days Europe wants the council to start functioning his summer The communique said It is the object of the conference to reach agreement on all questions at issue and to prepare common proposals for submission to the meeting of foreign ministers which it is hoped will take place in London some time after Easter The council will be composed of a committee of 10 ministers a sort sft cabinet which will meet in private and an assembly of 100 men the nearest the continent has ever come to the centuries old goal of a parliament of Europe Can Only Recommend Both the ministers and the par liament will try to coordinate Eu ropes economic and political thinking leaving military prob lems to the Atlantic alliance But the council can only recommend It cannot enforce its decisions Rather than a federation of Eu rope the council will resemble European United Nations Represented in the tiny confer ence room were Britain France Belgium the Netherlands Luxem bourg Sweden Denmark Norway Italy and Ireland almost all of western Europe Absent were Russiandominated Finland occupied Germany tra ditionally neutral Switzerland Spain Portugal snd the Soviet in eastern EuropeT ing he scheduled a conference at the slate department EST with Secy Tuesday of State Dean Acheson This speedy ap pointment immediately stirred speculation he intends to urge Acheson to favor giving Italy trusteeship control over the three African colonies that were taken from her by the peace treaty News Conference of State Dean Rusk disclosed at a news conference Monday Britain France and the United States had tried but failed so far to agree on how to dispose of the colonies Under the peace treaty the United Nations assembly com posed of 57 countries must decide the colonies future at the session beginning in New York April 5 Asst Secy Rusk told reporters the United States favors return ing only one colony Italiansomali land to Italy Britain would get Cyrenaica the most strategic half of Libya under a trusteeship and Ethiopia would be awarded the de sirable coastal section of Eritrea under the American formula Other Ministers Meanwhile the state department went ahead with preparations to welcome four other foreign min isters due to reach American shores Wednesday aboard the Queen Mary These are Ernest Bevin of Britain Paul Henri Spaak of Bel gium D U Stikker of the Nether lands and Joseph Been of Luxem bourg The foreign ministers of France Denmark Norway and Canada are expected to come to Washington separately arriving Thursday or Friday to be on hand for the sign ing of the treaty April 4 Portugal andIceland have yet to be heard from1 but state depart ment officials said the chances are better than 5050 that they too would be present at the signing ceremony A state department spokesman said meantime that Acheson was rather appalled by published estimates of the cost of the arms program which the state depart ment considers vital adjunct to the treaty The spokesman said published figures bear no relation to the figures we have in mind The most frequently quoted estimate is between and but other figures have been much higher The spokesman said the arms program will be ready for sub mission to congress at about the same time as the treaty Budget Director Frank Pace conferred with Mr Truman Monday on the program and said the president told him to work it over very carefully Granger Offers Lobby Levy By the Gallon9 March 28 UP Rep Walter Granger D Utah offered the house Monday what he described as a way to tax lobbyists indirectly anyhow Somebody said Why dont you tax lobbyists around here1 he said in a debate on a District of Columbia revenue bill Well this is the best Then he proposed raising the local tax on hard liquor from 50 cents to II a gallon Stock Margin o Cut Third To Up Trade Reserve Board Acts On Long Demand Of Security Dealers WASHINGTON March 28 federal reserve board Mon day night cut the cash down pay ment required on stock purchases from 759i to 50 of the price of the securities effective Wednes i day This action had long been de manded by securities dealers and by New York stock exchange Pres Emil Schram in the hope that it would lift marketsout of doldrums that have kept trading at an un usually low level for months Board Explanation The reserve board explained it was relaxing the margin require ments in the light of the general credit situation Marriner S Eccles member of the Federal Reserve board said it means the nation is now in a re cession I believe we have been in recession for several months Eccles the boards former chair man said in a Dumont television broadcast following the boards action He is the first high government official who has come out bluntly and described the current economic situation as a recession Edwin G Nourse chairman of Pres Tru mans economic advisers earlier termed the situation disinflation The 75 margin requirement on stock transactions had been iii ef fect since Feb 1 1947 For the 11 months before that the margin had been that stocks had to be paid for entirely in cash Excessive Credit Use The board was authorized by congress to fix the minimum cash down payment to prevent exces sive use of credit in the stock markets across the country Officials said credit outstanding on stock transactions now is at near an alltime low The market for weeks on end has been practi cally asleep with daily turnover averaging only about 700000 shares as was the case Monday Latest available official data showed that bank loans for pur chases of securities totaled 000000 as of March 16 against a high of in 1946 Johnson Takes Oath Vows Saf e America9 WASHINGTON March Big bluntspoken Louis A John son was sworn in Monday as sec retary of defense and promised to make America secure by dis couraging any potential aggres sor He also pledged that the army navy and air forces will be united as one in the service of thena tion An estimated 15000 spectators witnessed the colorful oathtaking ceremony in the fiveacre garden court of the Pentagon and with it the farewell to retiring Sec James V Forrestal Committed to Defense Johnson 58 a former Clarks burg W Va lawyer told the throng The size of the defense job we have is not of our choosing It has been thrust on us by h ten sion of the world today America is committed to defend its own national interest and the princi ples of world democracy With Goda help we are de termined that American youths will not again have to take part in the tragedy of wa We want peace if we can hu manly get it with honor and free dom But if there is aggression we are calmly confident that we can stop it In this faith I enter on this high office in the service of the nation Vlnson Gave Oath Chief Justice Fred M Vinson of the U S supreme court ad ministered the oath that made Johnson the civilian chief of all the armed services responsible only to the president and congress Proud and smiling Mrs Johnson sat in the front row of specta tors She wore a blue suit fur neckpiece a preEaster bonnet of blue straw and a single yellow orchid Sen Homer Ferguson Fought provision as being too vague Crews Save 11 Navy Fliers From Pacific PEARL HARBOR March 28 UPl navy men were snatched from the midPacific in a nickof time rescue Sunday midnight nine hours after their sinking Cata lina flying boat was forced down by engine failure They had estimated the leaking hulk could stay afloat no longer Just within the limit the navy LSM448 landing ship medium was guideH to the scene by a ma rine transport plane and pickefl up all the castaways It is due to land them at Kwajaleiri three days hence No one was injured Was Being Ferried The Catalina was being ferried from the central Pacific air base of Kwajalein to San Diego when it was forced down at pm Sunday Hawaii With its landing lights cutting through rain squalls and early evening haze the marine plane spotted the bobbing Catalina three hours and 45 minutes after the forced descent The castaways fired off so many flares that the marine pilot re marked It looked like a Chinese New Year You sure look good up there Lt Cmdr William C Hartman pilot of the downed plane radioed LO the marines An air force B17 special res cue plane dropped a boat but it was smashed in the heavy seas The B17 then sought to guide Lhe attack cargo ship Grainger to the spot Towing Lighter Though only 25 miles away the Grainger could make but 4 knots because it was towing e lighter The marine plane then guided in the L S M448 Besides Hartman those rescued included Ens R D Osborn of Pana HI chief aviation Brook of Rosehill N C aviation machinist Leroy Way of Portland Ore aviation machinists mate W G Baumann of Battle Creek Iowa aviation radiomen R J Haas of Seattle Wash P H Conley of St Louis Mo and H D Williams of Littlerock Cal ordnanceman W V Webb of Hugo Okla boatswain Frank F Dio guard and seaman Henry O Davit home towns unavailable 15Month Extension Okeh Survives Snag in Senate WASHINGTON March 28 UP senatehouse committee agreed Monday on a compromise 15month extension of rent con trols but the measure ran into some trouble in the senate After long wrangling senatehouse conferees came to terms a provision directing that rents be fixed at a level giving landlords a fair net operating in come The bill also would let states cities towns and villages scrap rent controls if the state governor approved The compromise still must be ratified by both the senate and house before it can be sent to Pres Harry S Truman Time is running short The present rent law expires at midnight Thursday Many Senators Apparently because many sen ators already had left for home administration leaders decided to put off senate action until Tues day The house is expected to act then too But the measure was presented to the senate officially Monday and it promptly stirred a round of protest The provision under attack was the one requiring the housing ex pediter to fix rent ceilings at a level which would give landlords a fair net operating income Sens Homer Ferguson R Mich and Robert A Taft R O contended the provision is too vague They said It isnt clear what is meant by a fair income and just how it would be deter mined The bill was defended by Sens Maybank 0 S C and Spark They said there are adequate guideposts for the hous ing expediter touse in arriving at fair income for landlords Absurdity and Sham Before the debate started Sen John Bricker R O told a re porter the bittis anabsurdltyand a sham so far as providing relief for landlords is concerned He stjd he might move Tuesday to send the measure back to the joint com mittee for revision The fair net operating income provision was included In lieu ofj a senate bill clause which would have boosted many rents 10 and a house one assuring landlords reasonable return on the reason able value of their property Bricker is understood to have opposed the scuttling of the house language in the conference Backers of Uiis phraseology say itwould compel the housing ex pediter in fixing rent ceilings to make allowances for interest the landlord pays on mortgages and amortization costs The phrase fair net operating income covers only such things as operating and maintenance expenses and real estate taxes Net Income The fair net operating income provision was rejected by the house conferees at a hectic meet ing of the joint committee Satur day Monday the house group yielded and in return the senate conferees agreed to toss out a senate pro vision which would have authorized some rent increases up to in two 5 steps There were no immediate offi cial estimates as to what extent if any the fair net operating in come provision agreed upon might boost rents But Sparkman told reporters it is based on practically the same principle the housing expediter is using under the present rent law to calculate rent under thelandlord hardship section Sparkman said the new pro vision probably would bring a flood of applications for increases but made no forecast to how many be granted The Alabama senator predicted See Page 2 Column 2 Clay Commutes Death Penalty Of Yank Massacre Leader FRANKFURT Germany March 28 Lucius D Clay Monday commuted tolife impris onment the death sentence of a Nazi officer convicted of issuing orders for the massacre of un armed American prisoners during the battle of the bulge Clay said he topic the action reluctantly since He was per sonally convinced ofthe guilt of 1st Lt Friederich Christ of Hit lers SS elite guard troops But he said if evidence which might have been obtained under duress was excluded the remaining evi dence was inadequate to support a death It is with reluctance but with the firm aid of fairly administer ing justice that I commute the death sentence to life imprison ment Clay said At ttw iam upheld the death penalty for an SS sergeant convicted of participating in the socalled Malmedy massacre Dec 23 1944 when some 700 unarmed American prisoners of war were wantonly slain by their German captors The death penalty for Sgt Paul Zwigart was affirmed on Clays finding that excluding all evi dence which is claimed to have been or may have been obtained through force or duress there still remains overwhelming evidence that Paul Zwigart murdered an unarmed surrendered American soldier without cause Charges that some of the evi dence used to convict Germans in the Malmedy case was obtained under duress were made in a re port issued by an investigating committee headed by Justice Gor don Simpson of the Texas supreme court ANY QUESTIONS Heres How Rent Bill Affects You WASHINGTON March 28 UP Question S and about new rent control bill Q Will my rent be Increased A Not automatically If your land lord is not getting a fair income out of his property rent authorities must grant him an increase after studying the situation thoroughly If youve already signed a volun tary 15 increase or if your land lord already has been granted hardship rent hike the chances for a further boost are much small er than otherwise Q Im a landlord Myproperty taxes have gone up the janitors threaten to strike unless they get higher wages fuel costs more than ever and Ive just completed spring repainting of apartment in teriors Can I use these costs a basts for asking a rent You can use all of them except the repainting which comes under the heading of main tenance Q What will be the new on evictions Its up to the ted era housing expediter to draw up ray reguUtlonr hi sary He probably will formed sources believi tMy will to considerably tighter than tha present 60day notice requirenient Q Can the federal government step in iny cMgftfrom scrapping if the city council votesvtp AT No But the governor f can veto it Q What does my state have to do to take over rent controls A Pass a law and set up machinery for administering state then notify the federal authorities Or the state legislature can re move controls entirely by gassing a law to that effect i Supreme Court Will Review Red Lie Case WASHINGTON March 28 GWf The supreme court agreed Monday to review the conviction of Harold R Christoffel former Milwaukee CIO union official on a charge of testifying falsely he had never been a Communist A federal jury here found Chris toffel guilty of lying to the houss labor committee He was sentenced to two to six years In another case involving a house committee the court heard argu ments on the contention of Gerhmrt Eisler that the unAmerican activ ities committee was illegally act up An Allen Red Eisler an alien Communist was convicted of contempt on a gov ernment assertion that he refused to be sworn as a committee witness on Feb 61947 He was sentenced o a year in jail and fined The sentence was stayed for peal Eisler a bald and talkative little man sat quietly in the rear of chamber as his attorneys argued that congress does not have the right to label any ideas unAmeri can In decisions handed down Mon day the court 1 Ruled out an Alabama law which required voters to under stand and explain the federal con stitution to register as a voter Uphold Mobile Court It upheld a federal court at Mobile which decided that the law was used to discriminate against Negroes and is unconstitutional 2 In effect upheld a Nebraska supreme court ruling that an Omaha city tax oh waa illegal The high court declined to review the decision thus leaving it standing The city imposed a 915 a day tax on Itinerant vendors required a permit costing and required them to post bonds and bwritk certificates vV The state court held that the city law discriminated interstate
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