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1
MORE LOWER COST GOODS,
HIGHER PAID WORKERS AIMS
IN MESSAGE SENT CONGRESS
Accompanying Budqet Sugi':. "jns
Cite Chance to Reduce bt
But Doesn't Favor Further Tax
I WASHINGTON, Jan. 21. (AP) President Tru 3 - ed
Congress today to get behind a sweeping program hi - ill
promote greater output of lower cost goods by hig
workers. O
And he cauntioned that "voices of disunity" which ' be
ginning to cry aloud again . . . must not prevail."
In a 25,000-word document combining for the first time both
lawmaking and budget recommendations, the Chief Executive
mixed expressions of optimism over business and job potentiali
ties with fresh warnings against inflation and concern over "ma
jor strikes."
In his budqet, Mr. Truman pegged government expenditures
durinq the fiscal year beginninq next July I at $35,860,000,000
only $4,347,000,000 above anticipated income.
And, by drawinq on the treasury's cash balance, he said the
national debt actually can be reduced for the first time in 17
years from an expected $275,000,000,000 next July to $27 1, -000,000,000
a year later.
He added, however, that he can recommend no further tax
cuts at this time.
In the "state of the union" por
tion ol his message, Mr. Truman
termed establishment of a "fair
wage structure" the "most serious
difficulty" in the oath of recon
version and expansion, adding:
"The ability of labor and man
agement to work topether, and
the wage and price policies which
they develop, are social and eco
nomic issues of first import
ance." He said labor and management
must establish "better human re
lationships," and apnnrentlv
mindful of his recent fruitless ef
forts to avert the nationwide steel
strike declared:
Government Can Only Aid
"No government Doliev can
make men understand each oth
er, agree, and pet-alonq unless
thev conduct themselves in a wav
to foster mutual respect and good
will.
"The government can. how
ever, heln to develoD machinery
which, with the backing of public
opinion, will assist labor and
management to resolve their dis
agreements in a peaceful manner
md reduce the number and dura-
ff"nnt(rniprt nn mcf fi
In the Day's Hews
By FRANK JENKINS
LATEST jitter now comes from
London, where the United
Nations organization (UNO) Is
taking its first faltering steps to
ward WORLD government.
THE Iranian delegation takes
what the dispatches describe
as the "first concrete steps to
bring the EXPLOSIVE Iranian
Russian issue before the world se
curity council."
John M. Hightower, of the AP
(a competent reporter), cables
from London that "numerous
UNO officials, Including those of
the United States and Great Brit
ain, privately expressed concern
over the Iranian question and
said that the untried and only
partially completed machinery of
the peace organization might be
badly strained In trying to cope
with such a dispute at the very
outset of Its existence." .
(The meat of the Iranian Is
sue, so far as we are able to
judge from the little that has
been told to us, lies In the fact
that big Russia is apparently
seeking to take a bite out of lit
tle Iran'3 territory.)
THIS Is the point:
If the council's decision goes
against Russia, Russia might be
so angered as to upset the unity
(Continued on page 2)
forest Drain to be Halted
Truman Asks Money to Buy
Private Timber, Increased
Outlay for Forest Service
WASHINGTON. Jan. 21. (Pi Faced with a drain on the na
tion's resources under its care almost equal to the war period, the
Forest Service announced today a long range plan to build back Its
timberlands and ranges.
Meantime, President Truman asked Congress to provide $8,
000.000 a year for purchase of private forest lands and to allow an
overall Increase of S10.0O0.0n0 in the Forest Service budget.
His request for $38,251,500 for this purpose during the 1947 fiscal
year was sent to Congress today. The 1916 total was $28,865,500.
Chief Forester Lyle F. Watts,
In a statement today accompany-1 sbout po,lM f0 thp .artmP nP.
Ing his annual report, says an mand Wartime timber rutting.
atn.urti.- lorr.irv l""-"H,n
would create an additional 2.500..
ifii ions. .Normally, nip lorests.
directly or Indlrectlv, he said,
provide about 3.750.000 !..li.
He estimated that lumber need
ed for domestic consumption In
the next 10 years will average
33,000,000 board feet annually or
Retention of Food
Subsidies Needed,
Truman Declares
WASHINGTON, Jan. 21. lF)
President Truman called on
Congress today to retain food sub
sidies as one means of combat
ting Inflation and a possible eiPht
per cent lump in the cost of liv
ing index for food.
This reouest represents an
about-face bv the administration j
on subsidies. It had planned to
end most of them by their June
30 expiration date.
Started early in the war to
keep food prices stable, the sub
sidies have been costing the cov
ernment about $1,750,000,000 a
year.
Mr. Truman said that unless
the subsidies are continued "it
would become extremely difficult
for us to control the forces of in
flation." More specifically, he estimated
that withdrawal of the subsidies
would force increases of from
three to five cents a pound in av
erage prices of meat: at least 1?
cents a pound for butter, in addi
tion to h five cent Increase al
lowed last fall: one to two cents
a quart for milk; one cent a loaf
for bread, more than a cent a
pound for supar, and eipht cents
a pound for chces'. in addition to
a scheduled increase of four cents
on Feb. 1.
The President also asked the
lawmakers for anoronriations
which, together with funds al
ready available, would permit
the Agriculture Department to
spend about $3,435,500,000 for
subsidies, farm programs, re
search and for foreign relief op
erations during the fiscal year
bef inning Julv 1.
The department's expenditure
for similar activities during the
current fiscal vear were estimat
ed at $2,992,000,000.
Tommy Manviile, Eighth
Wife Headed for Divorce
NEW YORK. Jan. 21.
After a marriage of five weeks,
Thomas F. "Tommy" Manviile,
51, and his eighth wife, the for
mer Gcorgina Campbell, 27. will
seek a Nevada divorce. Irwin
Miness, attorney lor Manviile,
said Saturday.
The attorney said Mrs. Man
viile has left the couple's home in
nearby New Rochelle for an un
announced destination. He added
it was not known who would
seek the divorce.
Collision of Autos Kills
Labor Camp Resident
McMINNVILLE, Jan. 21. m
Ora Spice, 45. a Dayton farm
labor camp resident, was killed
yesterday in a two-car collision
"north of Amity.
The driver of the second car
was unhurt.
j together With losses by fire, In
, nH rillD,,. h ..,H .
were
about 50 per cent greater than
annual timber growth, and
warned:
"Forest depletion todav Is so
serious that positive action to
(Continued on page 6)
Established 1873
Strike Paralyzes Steel Industry;
Seizure of Packing Plants Probable
Action to be
Mulled Today
At Conference
Public Hearing Slated by
Fact-Finders; Harvester
Firm to Face Walkout
(By the Associated Press)
A government official, who de
clined use of his name, said to
dav he saw little hope of avoiding
seizure of the major meat pack
ing plants, closed bv a six-dav
strike of 263,000 CIO and AFL
members.
He said the auestlon of a seiz
ure would be discussed at a con
ference of top administration
officials today, and he added he
considered it possible the govern
ment may take over the packing
plants within the next day or
two.
President Truman is known to
oppose seizures In labor disputes
except as a last resort, this source
said, and his is the final word.
As housewives mournfully
watched the diminishin- meat
supplies in their butcher shops, a
government fact-finding board
prepared to do what it could to
hasten the packing plants back
into production.
Waae Demand Reduced
The factfinders open pub
lic hearings In Chicago tomor
row in the dispute. At issue are
the CIO packinghouse workers'
demand or an immediate 171
cents hourly raise, reduced from
25 cents, and the AFL Meat Cut
ters and Butcher Workmen's- un-
Ion s demands for .20 cents an
hour more and a $30 minimum
weekly wage. The major packers
have offered both groups 10
cents hourly Increases.
Harvester Strike Slated
Thirty thousand International
Harvester Co. employes were set
to climax their demands for 30
per cent more pav with a strike,
starting at 11:30 today, in 11
plants in four states New York,
Iowa, Indiana and Illinois. In this
dispute, also, a fact-finding com
mittee planned an investigation,
starting tomorrow in Chicago.
As industry faced the prospect
of doing without steel, another
important material glass was
back in production again In 12
plants of the Pittsburg Plate
Glass Co. and the Libbey-Owens-Ford
Glass Co.
Settlement of the dispute was
reached Saturday with the work
ers accepting a 10.7 cents hourly
raise, plus an additional seven
(Continued on page 6)
Kimmel Cites Mistake
Of Japs at Pearl Harbor
WASHINGTON, Jan. 21 4
Rear Admiral Husband E. Kim
mel testified today the Japanese
made their "greatest mistake" by
attacking the American fleet at
Pearl Harbor and failing to put
the base Itself out of commission.
In his sixth day before a Senate-House
inouirv committee, the
former Pacific fleet commander,
said it was probable no attack
would have been attempted if the
American ships had Deen sent
back to the West Coast.
Kimmel said the slow battle
ships hit at Pearl Harbor were
not of much use early in the cam
paign because thev couldn't ac
company the fast striking forces
or carriers, cruisers and destroy
ers, and that the most useful
units escaped damage.
A-Bomb Security Control
Voted; Secret Retained
LONDON. Jan. 21. (.Tt-Crca-
tion of a special commission to
devise controls lor atomic energy
was approved bv the Political
Security Committee of the United
Nations Assembly today, after
onlv a 30-minute discussion.
The action was taken after
Senator Tom Connallv of file
Americal delegation said the com
mission w-iii not have power to
make any country give up any.
atomic secrets or take any other
action. The commission will be
able only to make recommenda
tions, he explained.
Stocks Tumble Badly
In Strikes' Reaction
NEW YORK, Jan. 21
The stock market today suf
fered its worst stumble in more
than a month at bearishneta
over the steel strike and other
labor controversies caused sell
ing of metals, motors and other
leaders. Bonds generally sacked
water.
Direction Signs
Feud of Coos Bay
Cities Adjusted
SALEM. Ore.. Jan. 21 IJV-
The State Highway Commission
settled another phase of the
North Bend-Goos Bay feud, the
quarrel this time being over
charges by the North Bend
Chamber of Commerce that
North Bend has been slighted in
the highway commissions policy
of erecting direction signs.
The North Bend Chamber ac
cused the commission of having
more signs pointing to Coos Bay
than to North Bend, and even of
taking down some of the North
Bend signs and putting Coos Bav
signs in their places.
State Highway Engineer Bald
dock, In a letter to the chamber,
said it's natural that more signs
should point to Coos Bay, inas
much as Coos Bay is the larger
city, but he denied that any
North Bend signs have been re
moved. But, to pour oil on the
troubled waters, B a 1 d o c k
promised to install more North
Bend signs on the Coos Bay-Rose-burg
highway, the Umpqua high
way, and the coast highway south
ui uanuon.
Two Nominations
Made by Truman
WASHINGTON, Jan. 21. t.Vt
President Truman todav nom
inated his Naval aide, Commo
dore James K. Vardman. to be a
member of the Board of Gover
nor of the Federal Reserve Sys
tem for a term of 14 years be
ginning Jan. 1.
The President also sent to the
Senate the nomination of Vice
Admiral Alan G. Kirk to be am
bassador to Belgium as well as
minister to Luxembourg.
Vardaman, a native of Missis
sippi and son of the late Senator
James K. Vardaman, succeeds
John K. McKee.
Vardaman served as an Armv
artillery officer in the First
World War. He has had banking
experience In Missouri and is one
of the President's oldest and
closest friends.
Kirk succeeds Charles Sawyer,
former Democratic National
Committeeman from Ohio, who
resigned to go back to his law
practice at Cincinnati. He com
manded U. S. Naval task forces
In the Invasion of Normandy.
American Marines Face
Longer Stay in China
TIENTSIN. Jan. 21. UP)
American Marines probably will
be kept in North China as a "sta
bilizing force" now that the re
patriation of the Japanese has
been turned over to the Chinese,
Rep. Bates (R.-Mass.). a member
of the House Naval Affairs sub
committee, said here today.
"The Marines may be ket
here some time longer as a sta
bilizing force while the good of
fices of the United States govern
ment are being used to reconcile
the two Chinese forces into peace
ful settlement." he said.
"We are Interested in a per
manent world peace. We are of
the conviction that unless we
lend a hand, another world con
flagration may be in the mak
ing." Retention of Federal
Control of USES Voted
WASHINGTON. Jan. 21.-(.P
The House Labor Committee
approved legislation today In line
w-ith President Truman's recom
mendation that the United States
Employment Service remain un
der federal control until July 1,
1917.
The vote to send the measure
to the House floor was 13 to 3.
Mr. Truman. In December,
vetoed legislation callln- for cut
barks of over $50,000,000,000 in
appropriations and sending au
thorizations, because Congress
had tarked on a rider callln" for
the USES transfer, sought bv
j manv state administrations, with
in 100 days.
Hirohito Permitted to
Give Away 3 Palaces
TOKYO. Jan. 21 4.11-Emperor
Hirohito was eranted per
mission bv General MarArthnr
Saturday to give awav three pal
aces, worth nearly SI .000.000.
Haknne mlace, valued at more
than $207,000. was hetowed nn
the Kanagawa Prefecture Kama
palace, worth about $310000, was
given to the City of Tokvo and
Mnko palace, worth about $320,
000. went to the Ctiy of Kobe.
ROSEBURG, OREGON,
Japan's War
Plants Seized
To Pay Debts
Reparations Get Priority
Over Peacetime Economy
Under MacArthur Order
TOKYO, Jan. 21. (."B All war
filants which equipped Japan's
osing bid for conquest were
seized and placed under guard
today by Gen. MacArthur, who
indicated many of the factories
would go to Allied nations as
rcpiatlons.
The Allied command took over
394 Japanese aircraft plants,
army and navy arsenals and war
laboratories. Among these were
265 aircraft and parts plants
listed by the Allied Reparations
Commission as "first priority ma
terial" for removal to other na
tions. MacArthur ordered cancella
tion of any previous permits to
the designated installations for
conversion to peacetime produc
tion, unless the installations were
"immediately and absolutely es
sential to the civil economy."
Commanders given custody of
the installations were told to con
sider the "probability that these
plants will be taken as repara
tions and consequently should not
be allowed to acquire importance
In the Japanese economy."
Says Japan Able to Pay
The directive disclosed that In
some instances the .T:n:tnri h.-ul
"removed machinery from plants
and that equipment valued at
(Continued on page 6)
Courts-Martial System
Due for Senate Probe
WASHINGTON, Jan. 21. I.V
The Senate Judiciary Commit
tee voted unanimously today for
an investigation of Army and
Navy courts-martial system and
the administration of wartime
martial law in Hawaii.
Chairman McCarran, who In
troduced the resolution, said
many complaints have been re
ceived concerning asserted injus
tices under the present court-martial
systems. Complaints also
have been made, he said, that citi
zens were deprived of constitu
tional rights in Hawaii because
of wartime martial law.
Fire Destroys Juneau
Theater and Apartments
JUNEAU, Alaska, Jan. 21 CP)
The Coliseum Theater and 26
apartments above it were swept
by fire vesterdav.
The blaze confined to the Coli
seum Building, broke out either
in the furnace room or In wiring
under the operators' booth, and
virtually destroyed the theater
ana seriously damaged the living
units above.
Tenants Including small babies
all were taken out safelv bv the
Juneau Fire Deiartment and sol
diers. W. D. Cross, building own
er, said the loss would run Into
"thousands."
tKMaS. .
; S ! ' ' '-.'ill -''4 "''
WORKERS WALK OUT AHEAD OF SCHEDULE -Mamberi of
the United Steel Workers IC. I. O.I march before tha main qata
of Jonai and Leughlin Steel Corporation plant at Pittsburgh, Pa.,
picketing 48 hours ahtad of tha ichadultd national walkout.
MONDAY. JANUARY 2 1, 1
No National Debt Boost First
Time in 1 7 Years Assurance in
Budget Outlay For Congress
The New Budget at a Glance
(By the Associated Press.)
Outgo $ 35,860,000,000
Income 31,513,000,000
deficit 4,347,000,000
Present debt 278,000,000,000
Debt June 30, 1947 271.000,000,000
Reduction (by drawing on Treasury balance I 7,000,000,000
i WASHINGTON, Jan. 21. (W)
DeGaulle
Resigns
French Presidency
PARIS. Jan. 21 ) The Com
munist Party launched a drive
today to name a Communist as
the successor to Gen. Charles de
Gaulle, who resigned the pro
visional presidency of France last
night following a cabinet crisis.
De Gaulle stepped down from
the presidency with an announce
ment that he considered he had
completed the task of "leading
the countrv toward liberation,
victory and sovereignty."
Four reasons were advanced
for De Gaulle's resignation:
1. His unalterable opposition to
the proposed draft of a constitu
tion on which the socialists and
communists are working, leaving
the MRP outside.
2. Resentment at continued
communist efforts to achieve a
new popular front In a fuller al
liance with the socialists, the radical-socialists
and other leftist
parties, at the expense of the
MRt.
3. Resentment at attacks on the
government for the food situation
and for the expenses of the
Army.
4. His lack of desire to head
anything but a tri partite govern
ment. Fate of Oregon Slayer
In Hands of Gov. Snell
SALEM, Ore.. Jan. 21. VP
Andrew W. Dennis, Portland rail
road worker who is scheduled to
die in the state prison gas cham
ber next Friday morning for
slaying his mother-in-law, Mrs.
Anna Belle McNallen, probably
won't learn his final fate until
the eve of his execution, Gover
nor Snell said today.
The governor said It would
take him until Thursday to com
plete his study of the case, and he
then would announce whether he
would commute the sentence to
life imprisonment.
Grand Beauty Shop Sold
To Mrs. Roy J. Foy
Mrs. Roy J. Foy has announced
the purchase of the Grand Beauty
Shop, located in the Lumber-
mans Building, and is taking im
mediate possession of the busi
ness. Mrs. Foy and her husband,
the latter ot be connected with
the Umqua Plywood Company,
which soon Is to begin operations,
recently arrived in Roseburp
from Port Angeles. Wash. Mrs.
Foy Is the youngest daughter of
Mr. and Mrs. Glen Wcllman of
Rusehurg.
946
President Truman presented a
$35,800,000,000 federal budget to
Congress today with his assurance
that for the first time in 17 years
no Increase In the national debt
will take place.
Military expenditures and the
aftermath of war account for
almost three-fourths of the bud
get total.
The President estimated that
the government will raise $31,
513,000,000 toward meeting the
hill for the fiscal year begin
ning July 1, thus leaving a deficit
of $4,347,000,000.
The Deficit, however, will be
taken care of, he said, "by a re
duction in the very substantial
balance which will lie in the
treasury during the next fiscal
year." In fact the debt Itself
will be pared from Its present
$278,000,000,000 to $271,000,000,
000 18 months hence.
Tax Reduction Opposed
Mr. Truman, however, called
for taxes to be held at present
levels.
"Inflationary pressures still ap
pear dangerously powerful," he
told Congress in his' annual bud
get message, "and ill-advised tax
reduction would operate to
strengthen them still further.
"This is not the time for tax
reduction."
Comparing the new 1947 bud
get with the current one, the
chief executive said that with
war spending cutbacks the total
for the 1946 fiscal year now is
estimated at $67,200,000,000. Re
ceipts are placed at $38,600,000,-
(Continued on page 6)
Arrest No. 13 Bad Luck;
Fine of $100 Imposed
James J. Gelger, Idlvld Park
logger, was fined $100 by Justice
of the Peace Thomas C. Hartfiel
Saturday for intoxication In a
public place. Severity of his fine
was due to a record of 12 pre
vious arrests bv lily and state
police since 1943, In which he had
paid fines totalling $215 for
drunkenness and disorderly con
dut. Gclgcr's companion, Edd J.
DeLapp, also of ldlcyld Park, was
fined $25 on the same charge.
Justice Hartfiel also levied
fines totalling $90 on five motor
ists: Frank E. Nichols, no P. U.
C. permit. $10; Russell C. Autrv,
unit overload, $10; Reuben V.
Horn, no vehicle license, $10;
Charles O. Leach, overload. $10;
George W. Schultz, unit overload,
$20.
Incendiary Fires at
Vanport City Continue
PORTLAND, Ore., Jan. 21.
(II -Vanport City's Inccndlarv
fires uie still continuing al
though a boy who police said
confessed to setting several of
the blazes is In lail.
Deputy sheriffs reported a S3.
000 inccndlarv in two hnusinv
protect apartments Saturday
night. Vincent W. Hunt. 17. Van
port Cltv was In lail at the time.
A small hoy of about 11 was
seen running from the cite of
Saturday's blaze shortly before
the flames were discoverd.
Boat House Fire Routs
Family of 5 Persons
PORTLAND. J.in. 21 .TV
Three small bovs and their "Tr
ent escaped today from a fire
which destroyed their llvine
quarters on the second floor of
a boat house.
The father, W. Nash, was
burned on the hands attempting
to check the flames The fire was
caused hv an electric heater, fire
Investigators said.
Iran Premier Quits Over
Dispute With Russians
TE"FRAN, Jan. 21 .1P Pre
mier Hakirna relened lrt nieht
after asserting his effnrTs to ne
eotlnte with the Russians over
A7erhalian had failed.
Halklma said efforts to nego
tiate with the Russians were un
availing and that he proposed to
present the ease 1o Hie United
Nations Organization.
17-48
750,000 CIO
Workers Quit
In 30 States
Tieup Greatest in Labor
History of U. S.; Nation's
Idle Upped to 1,600,000
(By the Associated Press.)
America's vast steel industry
virtually was shut down by a
strike of 750.000 CIO steelwork
ers today, and the country's total
of idle in labor disputes shot to
a new postwar high 1,600,000.
The country's reconversion
program was brought to a crisis
by the greatest strike in the his
tory of American labor.
A large segment of Industry,
and millions of potential consum
ers of everything from automo
biles to razor blades, were bound
to be affected.
The Civilian Production Admin
istration predicted steel starva
tion will be "closing one factory
after another" within two or
three weeks.
The strike machinery was set
in motion quietly. Furnaces had
been cooled in preparation for
possibly a long shutdown. Pro
duction had ceased In most mills
hours in advance of the 12:01
A. M. deadline.
Picketing Orderly
First reports said picketing
was orderly. In the sprawlln
Chicago-Garv. Ind.. scene of vio
lence during the 1937 "little steel"
strike, a union spokesman said
the picketing would be light "un
less the companies attempt to getL -back
into production. ..
About 1 300 plants In 30 state
closed. Pennsylvania's 300.000
steelworkers form the greatest ,
(Continued on page 3)
Truman Message
Draws GOP Raps
WASHINGTON, Jan. 21 UPr
Republican members of Congress
generally criticized President
Truman's message today and re
action of Democrats was mixed
as members studied the record
25.000-word document.
A quick check of numerous leg
islators failed to disclose a single
member who said he was in favor
of all 25 points in the President's
domestic legislative program.
Many already had made up
their minds one way or another
about 21 previous recommenda
tions which the President re
peated. Including such sublects
as universal military training
and establishment of a fair em
ployment practices commission.
Southern Democrats continued
their Senate filibuster against the
FEPC.
Senator Brewster (R., Me.) told
a reporter that the message "im
plies a complete breakdown of
party responsibility between the
white House and the Congress"
since he said many of the meas
ures the President suggested are
being held up In Congress by
action of the Democrats.
'"llie American people may
well consider suggesting to the
Democratic party that It 'put up
or shut up, he said. "The pa
ralysis of the administration is
reflected In the economic picture
of the country."
Engineer, Fireman Die
In Union Pacific Wreck
PENDLETON. Ore., Jan. 21.
(.T) Union Pacific officials were
Investigating today the cause of
a passenger train' derailment
which killed the engineer and
fireman and Injured another em
ployee Saturday night.
The westbound Pacific Limit
ed's engine plunged over a ton
foot embankment about 30 miles
east of here. Five mall, bag
gage and express cars and one
coach were derailed, but re
mained upright.
No passengers were lnlured.
The dead are Clarence R. Rider,
engineer, and Guy Baum, fire
man, both of La Grande. Wil
liam Pldiwk, Baker, an engineer
making a road trip, wns lnlured.
LvityFctnnt
7 U F. Rauamsteta
If Unci Som taktt evtr Hi
irtMt pocking plants, the action
might be appropriately labeled
at "sailing the bull by Hit
horns."
Pi '.'v .'