Excess Prof its Tax Approved in House r WASHINGTON, D e c. 5 JP) The house tonight passed an "ex cess profits' tax estimated to bring in, $4,600,000,000 from cor porations in 1951. The levy was approved and sent to the senate, 378 to 20. There Senator George (D-Ga), chairman of the tax-writing fi nance, committee, told reporters he expects the measure to reach the White house for signature in some form before the New Year. As approved by the house, the levy would be retroactive to last fJuly 1 a few days after the U. S. got into the Korean war. During the first 12 months of its operation it is expected to fall short of raising the fuU $4,000, - 000,000 asked by President Tru man from a tax on "excess" cor porate profits. But experts of the house ways and means commit tee, which framed the measure, estimated it would produce $4, 600,000,000 in calendar 1951 on the basis of increased corporate earnings expected then. Passage came soon after a sub stitute tax bill backed by repub lican policy leaders was defeated, 252 to 145. Only one democrat, Rep. Kennedy of Massachusetts, voted for the republican-favored proposal to shelve the winning bill for the substitute. The approved measure provides a 75 eer cent tax on profits in excess of what it calls normal. It defines normal profits as 85 per cent of average profits for the best three years in the four-year period 1946-1949. Profits thus de fined as normal would be taxable at the present top corporation in come levy of 45 per cent. The substitute backed by re publican policy leaders proposed an increase of 45 to 50 per cent in the tax on normal profits, which it defined as 100 per cent of the 1946-1949 average. It pro posed also a 75 per cent tax on profits in excess of the average for those years. f ttflOTl i (BOUNDED 1651 J tears, ft At tWewla Orsea 100th YEAB 20 PAGES Tho Qrocjon Statesman. Salem, Oregon. Wednesday. December C ItSO PRICE Se Ko. US ray' tF Klew tons Uou (SSV3, Ford Announce Car Price Dncreases DETROIT Dec. 5 -UP)-The automobile industry's efforts to hold the price line collapsed today. . General Motors and Ford-two of the industry's "big three" announced price increases on 1951 models. Both blamed higher manu facturing and labor costs. , . . .atk rn e action leaves oniy arjsxr, umu ukuiu v. ... - uUCerS, ycl 10 anuuuiicc tunc plans. Chrysler will introduce its 1951 cars in January. Several independent car manu facturers recently put higher price tags on their new models. The Ford boost, effective un Spain Collins Discounts A-Bomb TOKYO, Wednesday, Dec. 6-UPy -The U. S. Eighth army, sau fighting force, today awaited the vansruard of a 1,000,000-man Chi- nest communist army from a new rfpfpnse line in northwest Korea. It had halted its retreat from Pyongyang toward the 38th par allel. But there was no reirei j for 30,000 U. S. troops trapped in nrtrthMst Korea where appear ance of red forces close to the coast increased the peril. A tempered note of optimism for the northwestern situation was voiced by Gen. J. Lawton Collins, U. S. army chief of staff.N. "I think the Eigntn army is ca pable of taking care of itself," he said after a flying front line in ciwtinn Tuesdav. Asked at a news conference in nrhthpr the atomic bomb mediately, followed by only a few would be of worthwhile tactical State Payday Brings $10 Extra to Employes hours the General Motors announ cement. Ford listed specific prices for its cars, while GM said prices would be disclosed when its various cars are given first public showing. Chevrolet will be introduced Fri day, followed by Pontiac December 11. Dates for first showings of the rtiHemnVtiio Ruiek and Cadillac ; This week the American Asso-1 lines nave not heen announced, elation of Highway Officials is Ford which UPned its truck holdine its annual meeting in Mi- prices recently, said the boost in . . . !i. i nn . tha I.. . - . rtrxm frntn use in Korea, the chief of stalf re "Virtually not. from what I saw ToctprHnv Tuesday) Precisely where the Eighth army ha Pt un its new lines was a .or-ffiiiiv miarded military secret. AP Correspondent Don Huth said he saw large United Nations convoys move south of the 38th parallel which is 70 miles south nt Pvnnpvanf. A possible suggestion that it was defenseline in aepui came V e--.-. I S3. s "Vc B J- M " W1 ML I i v ; State employes lined up Tuesday to cash their monthly paychecks In Z'mJIS photographer.) - , holding its annual meeting m ""- prices recently, saia ujc uuum xi a deiense. line ia ucyui At.nne of its sessions the it- oassenser cars ranges from ronnrts from the field. These told George R. Bartlett -A ward for 1950 $87.50 on its lowest-priced Ford OI North Korean guerrillas being for distinguished service in road tQ 1155 on its highest-priced Lin- driven out of positions along com- building will be made to IfclH.lcoln. Baldock, chiefs .engineer 01 snci- At time the new Mercury This is one of the highest awards . pfcjent Henry Ford u said in this field and uref "" I there would be no price increase ored .as jxs great u - order to help Dattie inflation, thus honored. Mt UAW President Walter P. Reu- The award is based stricUy on criticized the GM in- merit. and the choAceei : the reap- s lAastatement tonight ief gom ve SLTI , H. said the boost was ."totally wJy iTeTgineertag ' bodies. In unjustified and unnecessary." v the case of Mr. Baldock it is not The mcrease,Keuthr 8aid,"xui- based on a single achievement but derscores the need foT decisive, ac- on lus recorci ox -1 uon ay m (u.cn.u... -- -. p. vsfth lr force Oreeon state highway department, runaway inflation and protect the Tuesday, U. S. Fifth air xorce the last 19 as us cmei tusmra 1 uvmg stanaaras 01 me Amencau naunu manding ridges and hills north of the 38th. Soutn Koreans aiso were reported to have built other de fense positions south of the par allel. Suitable for Defense In that area, the main roads and railroads are commanded by rough, jutting hills suitable for ar tillery and other defensive works. Already the Chinese were in aKanrimteri PvonvonK where al lied air" attacks dealt them deadly blows. Approximately 3,000 reds -were killed by air action there Communists in The Willamette Valley? There Aren't Many; But They're Here a (Editor Bote: What Is thm en aunlst trtatua 1 the WlUunetM vUr? That It what Tat Stat, naa wasted t kw aad wuu Ita reader t kaw. rUwias Is the resalt af a stady et aaaay saanaa Imi af the fuaferSaattam t hase4 b areTaaie face Other U verUled hy the kst aaaaihle sources. The Federal Bareaa a InvesUcafdea was ahawm the stry. almost vcrhaUaa. hetore Ma ahU catton. It had "ne comment.''). and executive head. people, -Baldock was born In Trmiaaa, Colorado. His college work in en gineering' was done at the Uni versity of Colorado. After several years 01 wui& with private corporations he came to Oregon. For several years he was an engineer with the port commission at Astoria, leaving that employment in 1915 to be come district engineer for the state highway department in eastern Oregon. In 1931 he was made chief . engineer. Charles Ross, Truman Press Secretary. Dies Rut natrols moving out from the w,Ar TTiirrith armv defense line re ported few contacts beyond minor skirmishes. a oi rfisnatch today from the northeast Iront said no ground riffVitinif was reoorted in the nhaniriin reservoir area where IT. s. marines and infantrymen Rut marine, navy ana air planes blasted reds south of the reservoir in hills overlooking an American artillery . . 7. A By Wendell Webb Manarlnc Editor. The Statesman There are active communists in the Willamette valley, at least a score of them. A dozen reside in or near Salem. They meet at members' homes, seldom at the same one twice in succession. WASHrar.TON. Dec. 5 -UPl- ... . I ra...i. r T3of cfhnlarlv IniiT- I ole noiinrtpn Irie snow T ' mv nrivileffe ) MVe W""lra " J ' . . 5":ri nalist and tiress secretary to iTe- hills. four years or wwer . . ,,nAWtidlv a Hns department spoices SS JSB that on the northeast Is-to: late today. He was . . eenrineerina copetence Ross was an old schoolmate of (Continued on jwuionai x-age, 1 m F"'u'V' t I Willi wuum lie Ami t, v . f Discrimination Due to Military Status Rebuked front the Chinese reds pushed a spearhead eastward and cut the mnin hiphwav between the two major east coast ports of Hung- .. :e.,ina4;n . iV " J 1 Wnnun. 1 BaUa in inaepenaence, sao. ne eujuycu 1 an anecuonaie ana mumaie re- supply fjeiwer ainst state workers sub- lationship with the presidential Wonsan is headquarters of the f a . 5"' " " V faimly. And he enjoyed as weU u. S. Tenth corps. Hungnam, pon 1 .s.- . the esteem of newspapermen in for the industrial city of Ham- u"- Washington, his native Missouri hung, is about 50 air miles north "Such practice will not be tol and throughout the country. 0f Wonsan. It serves as the sup- erated by my office, Governo He established a wide reputa- ply center for cnoppea up mcrvay avencu. n a a newsnanerman cLurinz ments of the U. S. First marine ai- Governor McKay said because Oregon's national guard had I his long career on the St. Louis vision and Seventh inlanuy aivi- a state employee or an eligible j - -n .k,r. n itatue I -r i; wnn . rhiiiitTor I cinn makine a fishting withdraw-1 annlirant on the civil service list Tuesday as a result of develop- prize in 1931 in the midst of the al some 50 miles to the northwest. SUDject to selective service draft Guard Status Unchanged Gov. Douglas McKay Tuesday One of their favorite meeting nlacet is a ranch near town. &m of them hava tacitly re- oudiated allegience to Ruwia. There . is no reason to suppose the repudiation Is sincere. Any one of them, man or wo man in the fervor of fanaticiarn could cause considerable damage if and when the chips are down. That appears to be the picture In the valley area toaay. No known communist was con-1 tartPd In the Dreraration of this survey. That can come later. No sources are being quoted. It Is not the purpose of this story to dry up wells 01 lniormauon. At Least One 'Cell' There is at least one commu nist "ceU" under close surveil lance in the immediate Salem area, aucn surveiuanrc uj eral law, now is a matter for the FBI. It cannot be said that com miinUm is strontr in the Willam ette vallev. But it still lives and it is known that new converts have been obtained in the years since the United States and rtus cia hprame allies in World War IT. Rest available Information in dicates the total movement. members and fellow travelers. in strength to that Benton, Yamhill and linn covin ties as well as Marion, 13 U.N. Nations Ask Reds to Stop At 38th Parallel By Francis W. Carpenter LAKE SUCCESS, Dec 5 -(AP)- Thirteen middle eastern and Asian nations appealed tonight to com munist China and North Korea to refrain from croaaing the 3Sth parallel in their power drire against U.N. force in Korea. The appeal pleaded for time to eon-" aider of ways to end the criaia in the orient. The appeal ras transmitted to Wu Ihiu-Chuan, head of the Communist Chinese delegation now in New York, ' with a request that he send it at once to his government at PeipUg. The plea was made by the XJM. delegates of India, Afghanistan, Burma. Egypt, Indonesia, Iran, Iraq, Lebanon. Pakistan, the Philip pines Saudi Arabia Syria and Yemen. The Indonesian an Afghan acicgaics joinea m ine consultations pending Instructions from thew governments and added their names to the petition after learning tram their Capital. The 13 countries acted as Canada's Lester B. Pearson surjrrrtrd cease fire. Secretary General Trygve Lie railed for all out efforts t settle the crisis, and the steering committee of the UJtf. sent the lssv to the full assembly. Pearson, Canada's external (foreign) affairs minister, speAking la a Canadian broadcast shortly after the fleering committee sent ta assembly the case of communist atxreion in Korea, said the taaVa should begin if and when the military situation ia Korea is ctabUns. The were among the rapid-fire development in the U-N.: 1. The full assembly was called into an emergency rrstitm Icr tomorrow to deal with the steering committee recommendation. TN Soviet bloc is expected to fight the committee action vigorously. H Z. Ue, who has talked twice with wu, said at a dinner to Lar'a honor that the nations must seek every honorable means to keep thm conflict from spreading, to bring an end to the fighting, and to uiwe negotiations on the wider issues that divide the world. S. Sir Gladwyn Jebb had lunch In his Riverdale (Bronx) bean with Ambassador nu and his advisers. Pearson said he knew the policy he suggested would be eaIW4 ppeaAernent1 but said It is not appeasement. lie said it Is aa at tempt through diplomacy to reach a way of life with the Astaa no munlst world. At the sama time, Pearson oum tor stronger oelensaa in the tree world. RemaW Underground TrUlTiail Attlee DlSCUSS iDunkerque Possibility In the meantime, communism is not recognized as a political party In Oregon and th party stalwarts remain underground. Bits of communist literature, fl oa tine around the valley at WASHINGTON. Dec -vrresident Truman and Prime JaTn- mnMr tn b aimed most-1 lster AtUee Ulked today of "steps to be takes' in Korea under any ly at young teen-agers. There set of circumstances including It was reported, the grim posatbtltty seems to have been no attempted that a Dunkerque-type evacuation may eventually be necctwary. eeneral distribution of red liter- OfftcUls emphasiied that no such eracuauon has been decitW ature since 18 months ago when upon. They said the American and British leaders were canvassing it showed up at a Champoeg the question of what their course should be ia case any one of threa meeting of pioneers. Most of it eventualities occurred: , , . . was promptly destroyed by per- 1. The advancing Red Chinese hordes, for some reason, should i- vnluntarilv llflQ their forward DlVCieSS. Z. tien. AlACATuuir jarcrm aowm suw w in Korea, about which there Is no certainty. I. The U. N. forces should una uemseives unaote w ap ry foothold at all in Korea. IM v t There were no rurtner oexaus, aiinouga wuo ia w i dent and prime minister were determined to support U. N. action aa Korea to the limit. The most recent flareup of I communism in Salem was in s church. Around 200 persons at tended a meeting there, many of them under the the impres sion it constituted only a public forum. The church and W per cent of all those attending dis avowed the assemblage when its intent came under suspicion. Sponsors were from Portland .via California nism in the Willamette valley and Santiam canyon it's still here. But more information on it is needed. ments in Korea, according to the depression for an article on "The adjutant general. Country's Plight What Can Be Maj. Gen. Thomas E. RHea said. Done About It?8 following a telephone conversa- Death was attributed to a heart on with the department of the attack. He was stricken while he army in Washington, D. C, that was talking with his secretary, (there were "no new developments i miss Myrtle uergneim, ana xeie- toward I any additional mobiliza-1 vision men. lion" announced. 1 ros. although nearly two years than Mr. Truman, at fleneral MacArthur's headquar- ntf to call for active duty due to ters reported three more Chinese is reserve status he is not to be red divisions were ready to rein- I discriminated against in promo- force the seven divisions aireaay i y0 transfer or employment- smashing through Korea's frigid nnrfheast icebox. This swelled the total number oi Chinese reds in the northeast to about 100,000 men. MacArthur's war summary "If state personnel have already been refused promotion or trans fer on this account it will be the Hut of personnel managers to correct such errors promptly,' Senator Paul Douglas. (D-TH) to- Bess Wallace, at Independence night declared this country should J high school. They were graduated embrace Nationalist unina as a together in laui ana noss was uw fighting ally and use the atom I class valedictorian. bomb against Kea tninese iroopsi Although their paths separated, - If.V.. vnuncer than Mr. Truman, at- t , wvemw tended school with the president I !P?".onll,'r. " ' -In the Interest of fair treat- IT", . u I DO VI nu imi i..v. l A ,un may be called to serve this coun try, I shall expect your coopera- VAVORS USE OF A-BOMB M WASHINGTON, uec. a -Un and Mrs. TTuman, xne iormer - . . lines m Korea. if necessary. Animal Crackers By WARREN GOODRICH iV OWL WMAYPPMCPeaOV Siaaests. fc- the two men remained fast friends. When Mr. Truman be came president on the death of Franklin D. Roosevelt in 1945, it was a natural move for him to offer the White House press re lations post to Ross, his old frined, who had spent more than 40 years in newspaper work. Kaiser Hopes To Reactivate. Vancouver Yard Prenarations were made to re- Tvinsra 9nn American civilian ner- sonnel from Seoul, the republic of tion.1 Korea capital. Greatest Retreat Correspondent Huth descriDea the Eighth army's withdrawal as the greatest retreat for an Amer ican army in modern times. In Seoul itself Correspondent o. H. P. Kine reported some mil itary men thought the Seoul-Inchon area could be held. One officer declared: ... "Such heavy losses could he in compares in strengxn w ma --. , , a which it reached in the late 30s. lotori8t (JatClieS None Registered Own Stolen Car, There Is no communist regis- ArrCStS Driver tered as such in Marion county. aasvs There are no more or less routine ALBANY, Ore., Dec. 5-(AVAft- meetings which once were held er a wild highway chase. Arthur in the neighborhood of South Rayburn was held in the Linn 14th street when city police quite county Jail here today often crashed the gate. Nor is He was Bradley Discusses Evacuation Plan Gen. Omar N. Bradley acknowledged tonight that in e-crrt testl .v. K-fnT tKa snat forelrn relations committee today be ho TheTrstatu. of commu- & on 'J' V' ' i ,w. rrm ... ...ii 1 from the extreme northeast sector of Korea. One senator who heard him had told reporters aarUer ley had said the recent withdrawals of U. N. forces had made tt rjossible to evacuate them from Korea as a whole If the defense. LnTcould not be held. However. BJ4,f t a- n irartiation was In connectloQ with the hard-yi eased troops In the extreme northeast sector which are now movie back to a concentration in a beachhead.- . "Any report other than this are ir.ltVrartlng and merely rpeoa- The general had appeared yesterday before President i Trutnaai and Prime Minister Attlee to outline the military situation to Korr. Afterwards high officials quoted him as saying that evacuation plana mm awa Wam m Sam eiaaft 7n .Ut tonladlry mad. no reference to hi. sa marks at the Truman-AtUee conference. a former meeting place in north-1 lor last night. SFSZ.VZ, Re-Invasion Story Declared .False ..nfr.i Cni.m irnawn to be fre- Junction City, where Taylor saw rM.fs1 Kf-rtAi-r Chartes O. Ross, who Ciea iwoaeruy . quented. his own car being driven away. h, talked with reporters, denied London repona tnas . v ..J T..1 Inmncil IntA lha ear nf a I , . . ,w. n4tlS Usitr IHIM TSAU OSy XnM WBUWa fssnsisiss nni ulC names umuwfta uu .bivi j k- nresiacns aua VJm j . . - . fellow-travelers, to a consider- friend, I. H. Woods, and they ra- forrrl would re-invade Korea 11 they were driven out by Chines able extent, are .known. And ced after Taylor's car. The speed ommunlsts. . ... M when and if an order goes out at times reached 90 miles an hour. -It u not true." Rosa told newsmen. ktdldnot eome uy as to the FBI Ho pick up persons Near Halsey, they caught up. Tay- t romerenca. incrw r . . ' a whose loyalty It is reasonable lor said the driver was wayourn, A reporter asked IT It was wuu mwwa T, ... I A a a a A .A I - J W 1 - L..u I . mm sk . a A VaAA to aouoi, mere couia ee tnrsu uveir uun - :' m.A v ,ia not l th. v.lW .11 the wav from calling police. -No comment,- Ros replied. Ba said be couM no Aurora to Eugene, and in Polk, Winter Storm Crosses Rlidwest on Way East Sawmill Workers Told nuaur nw.""" a rtiM f art a Tonight S onei commimiq . wIZa . . mA tM M on what moves snonw tYoe knew that book I borrowed from your I TWiaf j jinnntM WASHINGTON, Dec. 5 -UPh The Kaiser-Frazer Corp. got an other $25,000,000 loan from the Reconstruction Finance Corp. to day to enable it to turn out 600 cars daily and to handle defense contract work. -Kaiser said plans for defense production include probable re-1 Portland activation of a wartime Vancouv- San , Francisco er. Wash shipyard and expansion of an aluminum plant at Spokane, Wash. He indicated that ship conver By the Associated Press A cold wave, preceded by snow and strong winds, knifed deep into the nlains states and south Tuesday flicted on the enemy by artillery ancj began fanning out toward the and air that nis nope oi sweep- storm-harried eastern states. ine the Deninsula would be com-1 a- the storm Dicked up intensity. Dletely smashed." I the weather bureau issued cold Korean civilians in Seoul were nrsv and enow warnings for less confident One civic official Droad area from Iowa to western declared tnat "&omeuung outsme i Pennsylvania and West Virginia Korea right now must come to our rescue if we are to stay: Salem I ChiAjfO New Yi 4S 43 61 33 ork Wiflamette 47 lain. 41 42 . 60 11 39 Precip. M trace XI trac river 12J feet. rnnmsT from U.S. weather bu reau. McNary field. Salem): Ooudy 4.w v..n tnrf mnA tonialtt. Hiah sion work would be sought to get I today near 51 and low tonight near io. thai rnliimhia rlvtr vnrH onArat. I SALEM PRECIPITATION AAI.KM PRETIPITAl ing, and ready for new shipbulld- VZrvXLV list Year NoVmal i art secured. i gsja vlax the Columbia river yard operat ing, and ready f ing it contracts Skiddin temperatures in the up- ner Ohio valley checked the threat of serious floods along the swollen Ohio river, at least momentarily. Flood danger also diminished in California and all but 700 of the 5,000 who fled from their homes Sunday were able to return. But the threat of new snow in the Ohio river valley will keep flood fears alive. From four to seven inches of snow was expected Tuesday night and Wednesday for most of Illinois, Indiana, Michigan and the south half of Wisconsin. The storm is followed by a lurgt oi Arctic air that is expected to drive the mer cury down to 10 to 20 degrees below in Wisconsin and zero or below zero in Illinois and Indiana by Thursday morning. Winds of 20 to 25 miles an hour were expected to cause some drifting. The cold wave is expected to push into Ohio, Kentucky, Tennes see. West Virginia and western Pennsylvania Wednesday night and Thursday. Snow from two to six Inches is forecast for these states. Uo to six inches of snow fell across most of Minnesota and the eastern Dakotas and temperatures were expected to drop to 20 de grees below zero in the northern areas overnight. Cold wave warn ings were issued for Iowa, Wiscon sin and Illinois. The advancing cold brought these low readings: Butte and Glasgow, Mont, -25; Cutbank, Mont, -17; Sheridan, Wyo, -14; Akron, Colo, -4; Rapid City, S. D, and North Platte, Neb, -2. ' To Seek Pay Increase with the grim situation tn Korea or ehwhere in PORTLAND, Ore, Dec. 5-o woria picwre. . -valine between the leaders cf the two CIO Woodworkers were advised . This was the second 1 W0tomorreV3 tonight by their executive officers countries. Another session Is scneouiea ior to reach for more pay before gov- the White House. a ernment controls nailed wages 1 g Britain ill General AgTCCmCIlt do'n- r. .n m-Texl of the senate foreirn reUstone in iniemauorai " "r I H1""",.. haM mfortned that Mr. of Americas executive uwu i commllice una ora Ti rrnt on all mater . - - w0Mah i i iaai1 by alUsjd of living and that taxes are going Connelly said the agreemeus to cUp bigger sUces from p7-1 reverses in JCores. .v.n a14 the retreat of Aerto Al the rtnu.w. " " ii. mbA wijout panic" troop, and their 1. --g51 rf tk anoaesman - - . , & w S t I iM-i w rTT I I " mrm. sis m ' nf' niuiiun siwi w . rrrr. tiveiy ' Si COKTAIX2S CONSTETJCTION CORVALLIS, Dec I-C-Cor-rsllis building permits for the first 11 months CI tae year CW.e71, the first time tahWory that a year's volume exceeded 000,000. ICOCKT KTTCA aTXCTTDCO riTiKTA. ElcHy. Dee. 8-W7- Uimn lava from erupting Mount of bornes on the outskirts of Ea- i xuuzo tonlga 1 s Marin HeUan d Given Promolion ! lArrta Is, HaCand who been attached to the Salem aOsi . el the ftatt rorestry esaiuaami for 10 rears baa bean protootsas ia aatecntlve. aaaurtant to the atraVs gloa of 1M caxxrrTner!, the ia- pcrtmest announced Ttseaday. K tnooaeds IX. CoL Homer CL Lyon. Jr. wbo- ta btea cm r fptsj adlllary