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Mason City Globe-Gazette (Newspaper) - August 3, 1950, Mason City, Iowa NORTH IOWAS DAILY PAPER EDITED FOR THE HOME MASON CITY GLOBEGAZETTE THE NEWSPAPER THAT MAKES ALL NORTH tOWANS NEIGHBORS HOME EDITION VOL LVI Associated Press and United Press Full Lease Wires Five Cents a Copy MASON CITY IOWA THURSDAY AUGUST 3 1950 MASON CITY DOLLAR DAYS Thursday Friday and Saturday This Paper Consists of Two One No 25S Enemy Gathers Huge Force Near Chinju Move to Take Profits Out of War Democrats Prepare to Ram Through Big Tax Increase By FRANCIS M LeMAY Washington Demo cratic Leader Lucas said Thursday that although there may be no Immediate tax action against prof iteering the American people can be assured nobody is going to get rich at the expense of the G I We are going to take the profits out of war the Illinois senator said Lucas made his statement as democratic leaders prepared to ram through congress a taxboost ing bill probably near the 000000 size President Truman proposed and without an excess profits levy An immediate excess profits tax was not recommended by the president Lucas said in the inter est of speeding the first instal ment tax hike to passage Just to Make Ready He predicted it will come later with stiff rates on abnormal busi ness profits And he added If we get into a real war were going to have the most drastic taxes this country has ever seen This tax bill is just to get ready for the big one Meanwhile the senate finance committee moved swiftly to put the tax bill in shape for quick con gressional action In its first session behind closed doors it formally junked the houseapproved bill to cut by the excise taxes on such things as furs jewelry cos metics and movie tickets and ap proved instead a excise increase It voted r A 10 per cent manufacturing ex cise on television sets to collect A 10 per cent manufacturers levy on home freezers for another Heavy Slot Revenue A boost in the slot machine tax from to a year for each machine in operation The slot machine operators would kick additional into the treasury till The committee is yet to act on Mr Trumans major tax increas ing proposals 1 additional on indi vidual incomes The president wants this increase effective Oct 1 to pick up from 1950 individual income with the full force of the additional burden becoming effec tive next year 2 additional by boosting corporation income rates Mr Truman proposed making this rate hike effective for all 1950 corporation income Congress may balk here Some lawmakers are suggesting that the tax be levied on corporation income effective Oct 1 3 from tax law loophole plugging a withholding tax on corporation dividends and levies on the investment income of life insurance companies They al ready have been approved by the house A drive for immediate action on an excess profits tax aimed at z profiteering failed in its 1st test Wednesday The house ways and means committee voted down 15 to 8 a proposal by Rep Mills CD Ark to consider this tax along with a bill providing for renego tiation of government contracts Weather Report GlobeGazette photo by Bryant RECESS left to right are Rob ert Blue counsel for the citizens of Eagle Grove Elmer Terrill Northern Iowa division superintendent for the North Western Railway company a member of the Iowa State Commerce commission railway engineering depart ment and David E Long chairman of the Iowa State Com merce commission The conference took place during an afternoon recess of the hearing in Eagle Grove on the railway companys petition to discontinue two trains run ning north from Eagle Grove Blue had just previously moved that the commission call more witnesses to testi fy as to the quality of service offered by the railroad dur ing the last year Stormy Session at Eagle ExGovernor Blue Questions Rail Investigation Procedure FORECAST Mason City Partly cloudy and somewhat warmer through Fri day Low Thursday night 55 to 60 High Friday 80 to 85 fowa Partly cloudy and warmer Thursday night and Friday A few local showers extreme west portion Low Thursday night 55 to 62 High Friday 80 to 86 Slowly increasing humidity Further outlook Partly cloudy with local showers Saturday and Sunday Somewhat warm er Saturday Minnesota Partly cloudy and warmer Thursday night and Friday Few scattered light showers extreme west portion Low Thursday night 4852 in northeast 5560 southwest High Friday 7885 IN MASON CITY GlobeGazette weather statistics for the 24 hours ending at 8 a m Maximum 76 Minimum 50 At 8 a m 61 YEAR AGO Maximum 78 Minimum 51 By DAVE BRYANT Staff Representative Eagle the citizens of Eagle Grove Robert Blue former governor of Iowa turned a routine Iowa State com merce commission hearing into a stormy session Wednesday at Eagle Grove The former governor attempted to show that the commission had not thoroughly investigated the petition of the Chicago and North Western Railway company to dis continue two trains on the branch line running between Eagle Grove and Fox Lake Minn The trend of the hearing took an abrupt turn when Blue asked Ernest Porter the commerce com mission counsel to take the wit ness stand With Porter under oath Blue began quizzing him about investigation which had preceded the hearing Questioning revealed that Por ter left the investigation to be done by an assistant because he had more pressing duties which took him to Washington D C for 10 days The assistant is now in national guard training camp at Fort Leonard Wood Mo Porter had picked up his assistants notes and proceeded with the hearing Was War Considered Pointing out that most railroad lines in Iowa run east and west Blue asked Porter if he had in vestigated the military importance of the controversial trains in case of possible invasion of Alaska The commission counsel answered that such a possibility had been con sidered but no investigation had been made In event of a 3rd world war and a shortage of rubber have you investigatedthe effect of discon tinuing the trains on the security welfare and convenience of the people of the area Blue asked Porters reply was no David E Long chairman of the Iowa State Commerce commission permitted Blue to continue ques tioning of the uncomfortable com mission counsel After listening to a number of questions from Blue Frank W Davis counsel for the railway company objected on grounds that the questions were irrelevant to and having no bear ing on the case before the com mission Long told Porter to an swer the questions The fireworks started when Blue asked Porter if he had in vestigated the type of service of fered by the two passenger trains which were proposed to be dropped Porter replied that he had witnesses to show that the service was not good Asks Service Record Blue asked Porter if he had ob tained train arrival and departure limes from the railway company as evidence of the quality of serv ice Porter hadnt Then Blue moved the commis sion subpoena the necessary wit nesses to give the record of thi railway service offered during thi 11month period ending June 15 1950 That was the period on which the railway company ha reported in showing that opera lion of the profitable two trains was not I can assure you that the rec ords are available for the Eagle in Eagle rrove Des Moines Man Drowns in Clear Lake Bernard Jeffryes 19 Des Moines drowned in Clear Lake Wednesday afternoon He and a companion Charles Meyer 23 also of Des Moines had rented a launch and were diving from it about 200 yards from shore when it drifted away from them Both got panicky when neither was able to reach it Meyer said afterward Meyer was picked up by Jim Bawden who was out in a sailboat with a party but Jeffryes had disappeared Meyer was so exhausted by his ordeal that he was placed under a doctors care and it was nearly an hour afterward before the identity of the two was estab lished and details of the drowning were learned The two young men were em ployed by Younkers of Des Moinei and were decorating the windows of the Mason City store They had taken the afternoon off to go swimming station here Blue declared The railway counsel stated that obtaining of such records for the complete line would take consid erable time and effort He sug ested a spot check In answer to Davis statement hat the exhibit of such evidence vould be ridiculous Blue as erted that the petitioners had rested their case without present ng derogatory information about he train service Now they resist offering testi mony which will show that service o be inadequate Blue declared with emphasis Wants Entire Record To the railway counsels sug gestion of a spot check letting Blue pick the spots to be checked 31ue replied Ive picked them He wanted the entire record as evidence After much discussion both sides made concessions and it was agreed to agree to present the records of the Eagle Grove station at a continuation of the hearing Thursday morning Blue had sat quietly through he morning session while the rail way companys case was presented Davis called C H OHearn au iitor of capital expenditure for the North Western in Chicago to the stand as his first witness OHearn testified that the rail way company has been losing money on the two passenger trains No 23 and No 24 He ex aibited figures on the operation of the two trains during the 11 month period ending June 15 1950 During that period train No 23 had a daily passenger average suit of the poor Cross questioning of persons and averaged less than train No 24 4 passengers daily OHearn said He testified that the average daily loss real ized in operating the two trains amounted to 90 cents for each train mile amounting to a total of each day on the two trains OHearn stated that were spent on the railroad for every j dollar received from passenger and allied services offered by the two trains Under cross question ing by Ernest Porter commerce commission counsel representing the citizens served by the branch line OHearn admitted that the trains might be operated more economically if the steam engines were replaced by diesel power No Diesels Available However OHearn testified that the North Western Railway com pany now has no such engines available and that the initiation of their use on the branch line would Involve considerable cap ital expnnditure which could not be justified by the number of pas sengers which ride on the branch line Trains No 23 and 24 con sist of a steam engine a coach and a baggage and express car The next witness to appear for the railway company was Elmer Terrill Mason City superinten dent of the Northern Iowa divi sion of the North Western Rail way company Under questioning Terrill explained how the rail way company proposes to handle express shipments which have been handled by the two passen ger trains Express service would be vir tually the same as before between Eagle Grove and Burt Terrill testified The railway company proposes to haul the express on freight trains which run twice daily between Eagle Grove and Burt and 3 times weekly between Burt and Fox Lake In opposition to the proposal to discontinue the train service the jommerce commision called a number of persons served by the two trains to the witness stand Charge Unreliable Service Farmers and businessmen from along the route testified that citi zens did not want to see the trains discontinued Primary point made by most of the testi monies was the opinion that the railway company would get more business if it offered better pas senger train service The witnesses admitted that few people ride the trains But they maintained that the out dated trains poor condition of the cars and unreliable service were the cause The railway company counsel objected to the testimo nies on the grounds that they were immaterial irrelevant heresay and opinion having no bearing on the case before the commission Testimony of many of the wit nesses fell through when they ad mitted that they had found other means of transportation as a re train service revealed that most of the witnesses would not be greatly handicapped from the transportation standpoint if the present service were to be stop ped Hadnt Ridden Trains Some of the witnesses had not ridden either of the trains for a number of years That apparently was just what the railway com pany wanted to bring out as evi dence Testimonies showed that the witnesses relied primarily on the trains for mail and express serv ice In answer to that the railway counsel pointed to the division superintendents proposal for handling the express on freight trains 2nd Heated Session Erupts at Eagle Grove Eagle hearing by the Iowa commerce commission on a proposal to abandon passenger trains Nos 23 and 24 on the North Western between Eagle Grove and Fox Lake Minn ended at noon Thursday after a 2nd heated session in which Atty Robert Blue former Iowa gov ernor headed a movement in op position to the reduction in serv ice David E Long chairman of the commission asked that written briefs be filed by Blue and Ernest Porter commerce commission counsel Two petitions were filed Thurs day morning containing signa tures of 4000 to 5000 persons liv ing along the line of the North Western in the two states One petition requested that the commerce commission use its power to prevent discontinuing any more trains until it has made a thorough investigation of such action on the safety and conveni ence of the public The other ob jected to the removal of Trains 23 and 24 only Attorneys for the railroad ob jected to the filing of these peli tions on the ground that the only question involved was whether the company was making or los ing money GlobeGazette photo by Sorlien WORKING of the committee members whose working tempo was at top pitch Wednesday evening as they prepared for Governors Days at Clear Lake are shown at the Chamber of Commerce headquarters From left to right seated are Mrs James R Gilruth registration Mrs Neil Slocum housing B Dayton Merriman general chairman Mrs Don Browning ladies tea M A Arneson bleachers and police and standing Dr J D Hugins bathing beauty contest Dr D M Phillips Venetian Nights parade Robert Erickson publicity Art Armsbury motorboat races F C Lovell Jr cochairman ban quet House Vetoes Unlimited Controls Washington house re fused Thursday to give President Truman virtually unlimited pow ers to deal with labor disputes af fecting national defense A vote of 166 to 83 knocked from the administration economic con trols bill a section authorizing the president to take whatever action he deemed appropriate to insure uninterrupted production President Truman had never di rectly asked this authority but the section was in the bill demo cratic leaders introduced Tuesday It was the 2nd major change made in the measure Based on Living Cost Earlier the house voted that wage and price controls should go into effect automatically when ever the labor departments cost of living index advances 5 per cent above what it was on June 15 Administration forces offered only token opposition as the house adopted by voice vote the cost ofliving amendment offered by Rep McKinnon DCal It could reverse its stand later when the economic control bill comes up for rollcall votes The McKinnon Atty Blue contended that the convenience and safety of the people of Iowa was a greater con sideration amendment is similar to one proposed to the senate banking committee by Sen ator Fulbright DArk It would put wage and price controls into effect mandatorily whenever the bureau of labor statistics living cost index advances 5 per cent above what it was last June 15 Would Remove Standby It would remove the proposed standby authority which would let President Truman decide when to impose wage and price ceilings W Stuart Symington chairman of the national security resources board made a special trip to the capitol Thursday to urge senators to give the president a free hand in putting the wagepriceration ing curbs into effect The BLS price index covers re tail prices of food clothing fuel services and other necessities of life for moderateincome families in a selected group of large cities New index figures covering the June 35July 15 period will not be available until the end of this month However Ewan Clague director of the BLS gave sena tors evidence Thursday that the next index will show an increase General Price Increase Clague said a preliminary check of retail food prices indicates a general increase of 2 to 3 per cent during the month ended July 15 He attributed advances mainly to higher meat prices He told the senate banking com mittee that the preliminary food price checks covered 4 cities as ol midJuly Food of course is only one item in the index Clague said the figures lead us to expect a total increase of the same general magnitude as from May to June midmonth in each is 2 to 3 per cent foi food The BLS index issued las month showed an increase of 09 per cent from midMay to mid June for all the items covered The index on June 15 was 1702 per cent of the 19351939 average which is taken as a base or norma period figured at 100 Clague said part of the rise was due to scare buying and hoarding by some consumers and part of i reflects higher raw material costs like coffee and sugar which have been passed on with great rapidity to consumers His statement made to the com mittee behind closed doois latei was released lo newsmen Governors Days Vanguard Now at Lake Clear city was put ing finishing touches on its gala attire Thursday in preparation for he 12th annual Governors Days celebration this weekend The van uard of state officials and leg slators already was arriving Although not officially on the program the annual stag party Triday evening at Clear Lake state park will be the kickoff for the celebration as usual State offi cials and legislators are the special guests at the stag of the officers directors and committeemen of Ihe Association for the Preserva tion of Clear Lake Advance registrations indicate an attendance far above last years record of 175 according to Chair man Charles E Strickland Gov William S Beardsley sent his re grets however since he will spend Friday at Fort Leonard Wood in specting the Iowa guard contin ent and will be flying back to Des Moines during the Governor Comes Saturday The governor will arrive by plane at 2 p m Saturday and will be taken to the home of C A Knutson in Clear Lake his official residence during the visit At he will be taken by boat to the city dock and escorted to the plat form to receive the keys of the city from Mayor W H Ward The governor will speak briefly his remarks being broadcast over KGLO and later over KRIB After the talk the public will have an opportunity to meet the governor The Clear Lake Yacht club will stage its annual Governors days regatta Saturday at 10 a m and p m and Sunday at 10 a m Trophies are provided About 70 sailboats from Minnesota Mis souri and Iowa clubs will compete Motor boat races are at 3 Satur day Following the banquet at the A V S C the governor and his party will be escorted to the lake front where a band concert will precede the evening program with Doug las Sherwin as emcee and Mrs Maria Marines pianist Beauties to Parade The Shark club swimmers and divers from Des Moines will lead off with feats of water skills with the Skibats Clear Lakes own water skiing team also performing on the water Lastly the Venetian Nights pa rade each boat bearing a lovely bathing beauty will wind its way past the bleachers Judging of the contestants and the crowning of Miss Governors Days climax this program The governors ball at the Surf completes the evening Sunday morning the distin guished guests will take a boatride to P M park where breakfast will be served The boats return in time for the community church service in City park with Doctor Tom Shearer president of Parsons college Fairfield speaking on What Is Your Freedom Worth Auto races at the Mohawk Speedrome the finish of the sail boat races and a band concert in City park John Kopecky direct ing complete the planned pro gram Concessions will continue through Sunday evening Malik Says Korean Fight Is Civil War Lake Success IP Russias Jakob A Malik contended Thurs day the Korean conflict is only a civil war and said the security council must choose between the courses that lead to peace or war It must choose between the course that leads to war by drag ging in more and more countries or it must choose the path to peace favored by all nations of the world headed by the Soviet Union Malik told the council The United States prepared aggression and now they are em barked on acts of direct aggres sion They are now trying to drag others into the conflict and rul ing circles of the United Kingdom France and Holland are trying to help them The USSR is ap pealing to the security council to withdraw its support from the ag gression policy of the United SAME Black flag traffic deftth In pill 24 hours States and to take the path to peace In a 32minute speech urging acceptance of a security council agenda based on Russian desires Malik characterized the Korean conflict as a civil war between southern and northern Koreans As the session began Russia was facing defeat on the ques tion of seating red China in the UN and there was speculation this might lead the Russians to a new walkout Naktong Line Under Fire by Reds American Troops in Surprise Raid on Communist Positions Tokyo AP Strong American reinforcements rolled forward with tanks Fri day for the showdown fight for South Korea as the ag gressive communist invaders already had brought the new Naktong river defense line under artillery fire A P Correspondent Hal Boyle reported from the cen tral front near Taegu Thurs day night that swiftmarch ing North Korean patrols reached the west banks of the Naktong within an hour aft er Americans and South Ko rean defenders had crossed to the east bank The reds had pursued 20 miles on foot at amazing speed Shortly afterward they started shelling Hyonpung a highway town on the east bank 14 miles southwest of Taegu As the river mean ders they were at one place within 7 miles of Taegu but that key roadrail hub was quiet Big Buildup A big buildup of enemy forces on the holding front near Chinju was observed by a 24th infantry tank recon naissance force This force fought its way almost to Chin ju before wheeling and return ing to American lines in the hills 40 miles west of the main U S port of Pusan Associated Press Correspondent Don Whitehead reported from the front that tank probing forces fought into rear elements of com munists It was the deepest penetration made yet by an American force into the red lines and surprised the enemy in a roaring road bat tle Controls Exempt Press Radio Washington IP The house Thursday tentatively exempted all sources of public information in cluding the press and radio from proposed standby price control powers Exempt from the presidents control authority rates charged by public utilities insurance compa nies newspapers periodicals and magazines theaters and moving picture companies radio and tele vision outdoor advertising press associations and feature services for materials offered for publica tion professional services and for books and magazines other than periodicals Price Increase Is Two to 3 Per Cent Washington preliminary government check of retail food prices indicates a general increase of two to 3 per cent during the month which ended July 15 The survey by bureau of labor statistics is the first official gov ernment measure of retail prices covering part of the period since the outbreak of the Korean fight ing June 25 BULLETINS Washington President Truman said Thursday that Sec retaries of State Acheson and of Defense Johnson will remain on the job as Ion as he is in the white house Washington President Truman is sending W Averill Harriman to Japan Thursday to discuss the whole far eastern political situation with Gen Douglas MacArthur Washington K President Truman Thursday declared flat opposition to a senateapproved amendment calling for a 000000 loan to Franco Spain The task force ran through ma chinegun fire all the way out but brought back captured enemy documents maps and Russian made equipment The loot was considered important by intelli gence Whitehead reported Four Sherman tanks and 4 armored cars were abandoned by the Americans as they withdrew to road positions 4 miles south west of Chunjam about 40 miles west of Pusan Tank CreAvs Escape The Americans pulled out after the reds had got behind them and cut off the tanks The red Koreans stopped the first tank and the last one with immobilizing tactics The tank crews and most of the armored crews escaped The Americans then fanned out to the north and south and fought back to the main U S defensive position near Wonbung village about 10 miles northeast of Chin ju Associated Press Correspondent O H P King quoted Maj Gen John E Church new 24th division commander as saying the daring tank foray was fortunately timed Our attack stopped theirs from getting underway Church said Leif Erickson Associated Press correspondent at U S 8th army headquarters in Korea said the big withdrawal of allied troops in the west and north put the de fenders on a line of their choice the Naktong river The fall back he said disen gaged hard pressed American forces while the newly arrived 2nd infantry division and ele ments of the 1st marine division were being deployed The new ar rivals in the battle sectors have the heaviest arms yet to be brought into combat on the al lied side On Equal Terms On the new consolidated front the Americans and South Koreans face the communists on virtually equal terms in division strength There were 5 American divisions and 5 South Korean divisions fac ing an estimated 9 to 10 North Korean divisions Erickson said however the United Nations still lacked enough power to embark on any real counteroffensive He said there would soon be more carrierbased planes to help break up the long supply lines the communists now must maintain The correspondent said the al lied withdrawals were skillful They conserved manpower and de nied the communists an opportun ity to attack during the critical time when the reinforcing 2nd in ;