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Salt Lake Tribune, The (Newspaper) - March 30, 1949, Salt Lake City, Utah RADIO NEWS am am pm InlermounUin Network Station KALL Mondnj Through Friday WEATHER SHOW flurries south clondineM north warmer Details OB VI VOL 158 NO 167 SALT LAKE CITY UTAH WEDNESDAY MORNING MARCH 30 1949 PRICE FIVE CENTS Price Cuts Halt Inflation Spiral Most Dip From SkyHigh Level Few Considered Substantial NEW YORK March 29 new series of retail price cuts was laid before the consumer Tuesday further clipping inflations wings The cuts stretched the dollar a little further But most of the reductions were from highly inflated levels and many of them were small Automobiles and auto acces sories radios refrigerators ranges were among the wide variety of items affected Continued reductions in such basic commodities as lead zinc copper and steel indicated there might be further cuts inmanu factured goods in the wind Many Reductions The midseason spring catalogue of Sears Roebuck and Co featured many price reductions in all lines Even ice cream was down a cents a quart in Philadelphia Radios showed the biggest drop Westinghouse Electric chopped a lusty 20 to 50 off nine home model sets Thats as much as on a cash basis KaiserFrazer Corp knocked to off its car prices Henry Ford II president of Ford Motor Co saw a possible reduc tion in Fords Standard Oil Co of Indiana knocked onehalf cent a gallon off tank prices on kerosene range oil and Diesel fuels and a trifle more off furnace oil Cuts by Steel Firm Jones and Laughlin Steel Corp reduced the price of hot rolled bars and structural shape by as much as a ton But it didnt affect the steel industrys general price structure since Jones and Laughlin had topped other major products on those items Inland Steel announced cuts of up to a ton on galvanized sheets Scrap metal prices are down to the lowest in almost two years Lead zinc and copper prices all have slipped The main item common to all the price reduction was an in creased resistance on the part of the buyer The consumer has becphie more conscious of prices There has been a tendency to wait and see whether prices will come down a bit Lowered Margin The federal reserve board which took some of the controls off in stallment buying early this month lowered the margin requirements on stock purchases from to It brought quick response In Wall Street Marriner Eccles of the federal reserve board sums up the situa tion as a recession a healthy economic readjustment Congressmen say at very least the danger of uncontrolled in flation is over And now theyre beginning to worry about deflation instead of inflation Cuts Lead Gent Per Pound NEW YORK March 2S INS Smelting and Kenning Co announced a new cut of Ic a Ib in the price of lead Tuesday the third reduction this month in an effort to stimulate consumer buying interest The initial decline took place March 8 when lead was cut 2c a Ib from its record high of 21 c a Ib On March 14 the price was cut another to 18 cents An immediate aftermath of the rnarkdowns in lead quotations was the announcement by the Willard Storage Battery Co and the Elec tric Storage BatteryCo that they were reducing prices of auto stor age batteries by an average of Relaxed Margin Rules Result In Brisk Trade NEW YORK March 29 UP stock market responded briskly Tuesday to reduced mar gin requirements Prices ran up one to three points in the most active session in more than four months Ap proximately was added to market valuations All sections of the list participated and established the best aver ages since Feb 4 Transactions totaled 1800 000 shares the most in one day since Nov 10 It was the broad est market since Dec 11 with 1091 issues traded Of these 855 were higher at the end of the day 95 were lower and 141 closed unchanged Details on page 26 KaiserFrazer Cuts Prices Alters Control DETROIT March 29 KaiserFrazer Corp slashed car prices and shifted its top manage ment Tuesday to strengthen its position in the increasingly com petitive automotive industry The fouryearold firm now is completing its poorest threemonth production period in more than a year It attributedrecent cutback to federal credit regulations now relaxed andchangeover to hew models MiddlePrice Maneuver KaiserFrazers move was in terpreted in industry circles as de signed to capture a bigger share of the middlepriced car field Its price cuts averaged better than The third and highest in the industry since the war It said absorption of starting up costs required in establishing a new auto company was an im portant reason for its action Up to March 26 KF had turned out only 12710 vehicles this year This compared with 44811 in a corresponding period last year Announcing it was entering a broader mass market the com pany disclosed that it was putting more power in the hands of co founder Henry J Kaiser Accelerated Pace To steer the young firm through its accelerated production sched ules the board of directors named Edgar F president A son of Henry Kaiser he had been vice president and general man ager Joseph W Frazer former head of the old GrahamPaige Co who teamed with the older Kaiser in forming KF was shifted from president to the new post of vice chairman of the board Henry Kaiser is board chairman The price cuts were Kaiser Frazers first since it began opera tions in 1945 and the industrys third in little over a month KF reductions range from on the lowest priced Kaiser special down to on the standard Frazer General Motors and WillysOver land cut prices recently KF took over the huge former Willow Run bomber plant 30 miles from downtown Detroit at the end of the war TO CUT DODGER LOSS Chief Tax Collector Appeals For Larger Agent Force WASHINGTON March 29 Revenue Commis sioner George J Schoeneman said Tuesday theres no telling how much tax dodgers will get away with this year if congress doesnt give him more collectors Schoeneman whose tax head aches only began March 15 re cited his troubles to a senate ap propriations subcommittee consid ering his request for to run his department in fiscal 1950 He said the request is 000 larger than what the house voted him but that he needs more to call on people who wont just their income taxes During the new fiscal year start ing July 1 ht said Americans will kick in with about voluntarily The bureau will scrape up an other after much investigation and prodding by his agents But Schoeneman said he didnt know how much more re luctant taxpayers will get away with completely because he doesnt have enough investigators That isnt his biggest worry however He said he is scared the tax dollars now being paid voluntarily will begin to dwindle away as soon as people discover that our man DC ver is growing smaller In proportion to our job Even now he added he has only enough men to check only one tax return in four for elementary er rors in srithmetlc Somehow he commented such errors usually art in favor of the taxpayer White House Gets Rent Control Bill Home Rule Measure Clears Congress By Healthy Margin WASHINGTON March 20 Congress Tuesday approxed a 15 month rent control bill with a home rule escape clause and sent the measure on to the White House The senate cleared the measure first 8 to 11 with the house com pleting action by a vote of 262 to 144 Although it does not contain as much as Pres Harry S Truman had asked he is expected to sign the legislation to replace the pres ent law which expires at mid night Thursday The major provisions of the new bill are 1 States may scrap federal con trols by vote of their legislatures and with the governors approval Local Administration Or they may take over adminis tration of the curbs if the governor certifies that the state has an adequate rent law on its books 2 Rent ceilings are to be set so as to give landlords a fair net operating income as determined by the federal housing expediter 3 Nationwide eviction regula tions are to be set up by the ex pediter which will take precedence over local rules 4 The expediter is empowered to sue for trebliS damages on a tenants behalf in case of a rent overcharge Compromise Measure The bill is a compromise between the two different versions adopted earlier by the senate and house Final passage climaxed weeks of heated debate during which time it appeared that the senate filibuster might prevent any action to renew the curbs Administration leaders in both senate and house told the law makers Tuesday they either had to accept the compromise plan or not have any rent controls after Thursday Sen John W Bricker R O tried unsuccessfullyto send the bill back to the joint conference committee for another try at re drafting the landlords aid pro vision Bricker had the support of Sen Robert X Taft R O but his motion was rejected by a vote of 53 to 33 Bricker said the fair net operat ing income clause was meaning less offered no more relief to See Page 3 Column 5 George Urges U S Slash Outlay Taxes WASHINGTON March 29 Sen Walter F George D Ga urged congress Tuesday to slash federal spending and follow Can adas plans to cut income taxes At the present rate of govern ment outlays and taxation he said this country is heading for some thing that will resemble a depres sion George who is chairman of the senate finance committee which handles tax bills made his re marks during senate debate on the 15800000000 European recovery measure Will Need Boost If federal expenditures are not cut he said the government will have to raise in new revenue instead of the 000 Pres Harry S Truman has asked Noting that the administration bases its tax boost request partly on the need to reduce the national debt George said that Canadas own debt is about comparable to our own in proportion to popula tion He said Canada is reducing in come taxes by an average of Also the new tax structure will relieve about 750000 people of all taxes he said Rather than boosting Income levies he told his colleagues Tues day the government ought to re scale its tax system along the following lines Hike Exemptions 1 Granting single persons a personal exemption instead of the J600 currently allowed and married couples exemption in place of the total per mitted now 2 Giving business firms credit on dividends actually and making a special rate on cor porate earnings to take care of little business Sen Robert A Taft R Ohio agreed with George If we are not going to have to vote a tax increase In June Taft said we will have to cut all ex penditures substantially The Ohio Republican leader told reporters later he thinks total ap propriations will have to he cut ff tax boott it to be avoided Geh Vassily I Chuikov Will lead Russ troops in Germany Russia Alters East Reich Military Setup LONDON Wednesday March 30 Russia in its second big shakeup in military leadership in five days relieved Marshal Vassily J Sokblovsky of his duties as commander in chief in Germany Wednesday and named him first deputy minister for the armed forces Named to replace Sokolovsky in Germany was Army Gen Vas sily I Chuikov another World War II hero who had served under him as Soviet military administration chief for Thuringia Peace Move Rumors News of Sokolovskys relief as commander in chief was broadcast by the Moscow radio shortly after midnight in the form of a com munique of the Soviet Council of Ministers the cabinet Speculation was immediately re yjiv prep ere that nga new peace of tensive based on Germany It was under Sokolovskys ad ministration that Russia started its get tough policy in Germany and imposed an economic blockade on the western sectors of Berlin Chuikov now succeeds to the j most important Russian command outside the Soviet union one on which anxious diplomatic eyes are focussed from all over the world because of the cold war Crux of Announcement Chuikovs appointment as chief of the Russian military adminis tration in Thuringia was an nounced in July 1945 The moscow announcement said The council of ministers has appointed Marshal Sokolovsky first deputy minister for the armed forces He is simultaneously relieved of his post of commander in chief of the Soviet occupation forces in Germany He is also relieved of his duties as head of the Soviet ad ministration in Germany The council of ministers of the USSR has appointed Army Gen V I Chuikov commander in chief of Soviet occupation troops in Germany and head of the Soviet military administration in Ger many New Moscow Lineup Under the new setup in Moscow Sokolovsky will be first deputy premier to Marshal Alexander M Vassilevsky who had served as first deputy to Bulganin Last Friday a Berlin dispatch quoted wellinformed sources as reporting that as part of the big shakeup in Russian leadership the wartime state defense council was aeing reactivated and a reorgan ization of the Russian high com mand was in progress However these informants pre dicted that Sokolovsky would be come deputy chief of the general staff rather than first deputy armed forces minister Sokolovsky was one of Russias war heros who distinguished him self in the defense of Smolensk and Moscow Norse Approve Pact Entry At Roivdy Meet OLSO Norway March 29 UP Parliament approved Norways entrance to the At lantic pact Tuesday night by a vote of 130 to 13 after a tumult uous session during which left ists showered leaflets on mem bers from the galleries cast 11 of the negative ballots rebel Labor ites the other two The governments position was strengthened by the vote On March 3 parliament voted 118 to 11 to authorize the govern ment to discuss entrance to the treaty Four leftists were arrested for throwing antipact leaflets from galleries during debaU In ERP of Million Warns Tax Increase Inevitable in June Without Economies WASHINGTON March 29 UP Robert A Taft R O Tuesday moved to cut from the administrations 000000 Marshall plan renewal bill Taft told the senate that if con gress doesnt begin slashing Pres Harry S Trumans spending pro gram with the foreign aid measure it will have very little hope of avoiding a tax increase in June If we arent going to vote a tax increase in June we have to cut substantially all expenditures which now contemplate deficit of he said OOPDixie Bloc Taft who is GOP policy com mittee chairman proposed that Kconomic Cooperation Adminiv trator Paul G Hoffmans request for in spending au thorizations for the next three months be trimmed to 000 And he urged that 000 asked for fiscal 1950 be re duced to He did not however recommend that a pro posed in contract au thorizations be scrapped Joining Taft in the move for re duced spending was Sen Richard B Russell D Russells sen ior Walter F George D just warned the senate that the United States would be threatened with a size able depression if it raised taxes to the extent requested by Pres Truman Cain Demands Probe Meanwhile other Republicans sought to sidetrack the 15month renewal amidst charges that the administration is withholding the facts on the programs operations Sjen Harry P Cain R Wash urged that congress refuse to vote a dollar for further Eu ropean recovery operations until a fulldress investigation is held The program is now due to expire at midnight At the same it was learneii that Sen Styles Bridges tRCwjJ ranking Republican on senate appropriations committee was prepared to offer ah amend ment limiting extension of tiie aid program to three months As ERP legislation failed to progress in a Tuesday night ses sion it appeared a final vote would not come before Thursday Clark Bans U S Tour By Peace Meet Reds Louis A Johnson Takes steps to speed unity of armed forces MILITARY UNITY U S Protests Czech Trial Of Yank Duo PRAGUE Szechbslovakia March 29 United States pro tested Tuesday against the convic tion of two American soldiers at a secret trial on charges of spying against Czechoslovakia The soldiers who wandered across the frontier from the U S occupied zone of Germany last De cember were sentenced to long prison to 12 years and the other to 10 The U S embassy declared the secret trial was held without regard for normal rights and safe guards Two Men Identified The men held in a Prague pris on are listed in U S army records as Recruit Clarence R Hill 31 of Jackson Miss and Recruit George R Jones 22 of Owensboro Ky absent without leave since Dec 1 from the U S constabularys Sixth armored regiment The Czechoslovak press bureau announced Tuesday they were con victed of espionage at a secret trial Saturday It said Hill was sentenced to 12 years and Jones to whom it referred without explana tion as Alexander Jones alias Hunter to 10 years Follow U S Trials The action came after the wind up in Munich of a series of trials before a U S military commission in which 17 persons including several convicted of spying for the Czechoslovak intel ligence service They were sen tenced to prison terms ranging up to 30 years Ambassador Joseph E Jacobs indicated that the foreign ministry promised to make arrangements for an embassy official to see the soldiers next week He and his staff said they regarded the charge of espionage as preposterous Crossed Czech Border The soldiers were arrested last Dec 10 after crossing the frontier Czechoslovak police said with sev eral German girls The Czechoslo vaks insisted the men were sent across on a secret mission A U S army spokesman in Frankfurt declared the two initely were not spies and were not on any mission He reiter ated that they were absent with out leave when they went into Czechoslovakia WASHINGTON March 29 Defense Secy Lewis A Johnson Tuesday initiated a series of brisk moves to unify the nations armed services As a starter he cracked down on headline squabbles be tween the navy and the air iorce There will be no vying between the services for headlines no re lease of things that are secret swom flti to new post the big baldpated defense chief also 1 Told army navy and air at once to the Pentagon the nerve center of American defense Will AboiUh Boards 2 Announced he will abolish many of 800 boards and agencies set up by the three armed services over a long period of years 3 Banned personal or party politics in the national military establishment 4 Indicated that some heads will roll but the people who are doing their jobswill remain 5 And finally said he has a pretty fair conviction what roles the air force and the navy should play in the event of war Cites Long Controversy This last comment referred to the long and bitter controversy between the two services over the type of bombing missions each should execute in wartime Air force chiefs have contended their longrange planes should carry out strategic air blows struck at the heart of the enemys production centers Just as staunchly the navy has argued that its aircraft carriers should be allowed to Join in the such giant flattops as the navys carrier the United States which is now under construction Johnson gave no inkling of which way his pretty fair con viction leans He is known how ever as a strong advocate of longrange bombers Appoints Coordinator And as one of his first steps he named air force Gen Joseph T McNarney to the job of co ordinating the changes he plans to make The three services he said an tin testinal illness Shostakovitch Others Must Leave Soon as Possible WASHINGTON March 29 government Tuesday told foreign delegates to the recent world peace conference in New York to drop their plans for a nationwide speaking tour and return home as soon as possible Atty Gen Tom Clark notified immigration officials in New York to see to it that the delegates including Russian Composer Dmitri Shostakovich leave the United States as soon ar they can make arrangements Visas Dont Allow Tour The state department had notified the 18 Communist dele gates to the Cultural and Scientific Conference for World Peace that their visas do not allow them to tour the nation In clamping down on freedom of travel for the Communist visitors the state department said in notes to the Russian Polish Czechoslovakian and Yugoslav ambassadors that it had expected them to go home as soon the conference was over It added howeyer that it would consider any application for an extension of their visas Clark was specific MustLeave Soon v Immigration officials in New York will notify these jpepple that their visas do not permit them to extend their world peace conference his spokesman said They will have to leave this counV try as soon as possible Leaders of the world peace i conference had plannedto start a twoweeks speaking tour Clarks instructions apparently spiked that unless they win an extension of their visas If they should fail to request an extension and do not leave the country voluntarily it was be lieved that agents of the immigrt Johnson Bans Naval Air Rivalry for Headlines are going to have a chance to argue me out of that conclusion in the next couple of days Johnson said he plans to go to Key West Fla next week with the commanders of the three armed services to confer with Gen Dwight D Eisenhower temporary chairman of the joint chiefs of staff Eisenhower flew to Key West Monday to recuperate from Amont powers sought by the administration is a change in the 1047 unification act to authprlM the creationiqf subcablhet post This would chairman of the joint chiefs of staff who would hold the highest military rank in all the armed forces and become the principal military ad viser to the president and secre tary of defense tion service and Federal Bureau of Investigation would be instructed to pick them up and hold them for deportation V Drop Other Plans After gates from the Viron v curtiinV countries dropped plans to attends another peace rally at N J egates from Kngland and Africa spoke The sponsors of Cultural wMNWtpected v altlour Nourse Quits Council Post WASHINGTON March 29 UP Washington Post reported Tuesday that Edwin G Nourse chairman of Pres Harry S Tru mans council of economic advisers has submitted his resignation be cause of differ ences with other board members J ALivingston thePoats busi ness analyst said the split was over whether the board should en gage in political activity He said Nourse believes the council must be a noripolitical pro fessional body while council mem bers Leon H KeyserUng and John D Clark feel it must play a polit ical Nourse reached by telephone said he was surprised to hear that the report had been published and said he would not comment on it He would neither confirm nor deny that his resignation is on the presidents desk as the Post re ported Nourse admitted that he had written a letter to Sen Joseph C OMahoney D Wyo chairman of the joint congressional economic committee explaining why he did not testify before the committee recently as did Keyserling and Clark and Scientific did not sian delegatesJ the delegatttl ern European nations would de part The spokesman said sched uled trips to other American cit ies definitely appear to be off The New York immigration offlt cials were notified shortly after noon to see to it that the for eign Communists go no placi but hbmeJ r Tr SevenMm Delegation The group includes Russias sevenman delegation tothe world peace conference New York dispatches said delegates had planned to go to i Newark N J Tuesday night and then visit Philadelphia Baltimore Detroit St Louis and Los Angeles Shostakovitch was scheduled toi speak Baltimore rally Satur day night The State department asked Clark to bring to tha attentionof the individual visitors the and considerations surrounding their visas to enter the United States For Conf In its notes to Russian and satellite ambassadors de aartment said visitor granted to the Communists only to attend the Cultural and Scientific Conference for World Peace in New York NEW YORK March 29 The National Association of ufacturers said Tuesday that Russians here for recent world peace meeting had de clined an invitation to visit Ameri can factories because the trip might be misunderstood or jms riterpreted by the Soviet gbyernr ment COASTCOAST IN 5 HRS 5 SEC Pilot Ends Risky Record Try v NEW YORK March 29 Speed pilot Joe De Bona flew from coast to coast Tuesday in five hours and five seconds and landed at La Guardia field a scared boy His soupedup F51 plane hada cracked cockpit canopy danger ously low oil pressure no oxygen and gasoline for only seven more minutes of flying The canopy cracked when I was zooming in here at 600 miles an hour De Bona said It scared hell out of me Ill never try a record flight again he said This too nerve wracking Bona took off from Bur bank Cal in actor Jimmy Stew arts 9yearold am EST and was clocked in offi cially at La Guardia at pm EST by Frtd H Wilkcnoh official timer of the National Aeronautical Assn Wilkerson said the NAA in Washington would have to decide whether Bona had a new crosscountry record He said the plane carried no barograph a locked instrument which shows elapsed airtime and that the gas oline tanks were hotsealed De Bona said he was tired as he stepped from his plane but he didnt look it His hands werent even dirty The crosscountry flight at an average speed of 530 mph was made in three less than a normal working day De Bow had two hours of bad flying weatfctr from Needles Cal to St Joseph Mo He began losing oil over Akron O which reduced his speed ran out of oxy gen over Sunbury Pa which forced him down from 30000 to 17000 The official coaittoceaat rec ord for a single reciprocating en gine plane such as Do Boat flew is six seven minutes and five seconds set by Paul Mantz on Feb 28 in flight averaging 401076 mph LOS ANGELES March Mantt pilot and movie stunt man Tuesday flew from San BTanclaco to Lot Angeles in record breakingtlmr of 49 minutes and 82 seconds Mantz took off from San Fran Cisco at am PST set hit F51 fighter down in Ies less than 50 minutts later set a new mark for proptllor driv en t Thr pilot own coMtto coast record WM Joe Bona Tuesday said Mi flight was officially timtrt by tin Uonal i
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