I J
Determined tfiax-Cuttirig Drive by Democrats
Threatens toGu t Holes in Ike's Revenue Flans
By CHARLES F. BARRETT
WASHINGTON A deter
mined drive by congressional Dem
ocrats bent on cutting personal in
come taxes threatened Saturday to
knock big boles in President Eisen
hower's revenue program and
force changes in his basic econom
ic policy. '
At issue was not only bow many
billions of dollars taxes would be
cut but bow . the pie would be
sliced as between business and in
dividuals, and which cuts would
best pull the nation out of the pres
ent economic dip.
The argument could bring the
most explosive party-line battle of
the year. Both sides agreed that it
might, to a large extent, deter
mine poliical fortunes in the fall
congressional elections. - ,
Democratic leaders in both bouses
said their members are lining up
almost solidly behind proposals to
increase personal income tax ex
emptions for' each taxpayer and
dependent from the present $600
In the- Senate, Democrats, cham
pioned a surprise: bill by . Sen.
George (D-Gaf to lift the exemp
tions to $800 this year and to $1,000
next year. ;.; f f . ; .
Many Free of Taxes
The House proposal would cut
revenues an additional IVt billion
dollars annually. The proposed
Senate uOl would I save taxpayers
an estimated 4 -billion the first
year, and 10; billion the second
year. Millions! of taxpayers would
be i relieved, from f any federal in
tome tax at ill
Democratic leaders forecast that
some ; Republican! would break
ranks and support an exemption
increase. But ; win or lose in Con
gress, they said the fight would be
one of their biggest and best issues
in the fall election.
There were; a few signs of wav
ering in Republican ranks. One
key GOP member: of the tax-writing
House Ways and Means Com
mittee forecast privately that the
House would, vote an exemption
In the House, they aimed at $700. 1, increase over administration oppo-
1
aaui oeiiow unosen winner
Of 1953 National BoolctAward
By W. G. ROGERS r
Associated Press Arts Editor
NEW YORK UP) Literature
and life are a long way apart,
says Saul Bellow, a man who is
doing a lot to bring them to
gether. He's the author of The Ad
ventures of Augie March," the
novel which recently won the Na
tional Book award. t
In the opinion Of some novel
ists and readers, it's the most
worthwhile prize of its kind. This
is not Bellow's only honor, how
ever. He had a Guggenheim in
1948-49, and a National Institute
of ' Arts and Letters award of
$1,000 year before last
Bellow has a ready smile, and
ready answer for questions.
His hair recedes on the sides,
leaving a curly black tuft jutting
toward his high brow. And "high
brow" is.- part of the key to him.
for he's not a hit-ormiss novel
ist, as some of ' his fellows are,
but a thoughtful and purposeful
one who expects a novel to tell
a story and have something to
say, too. -
Reason for Gap
One reason for the gap be
tween what we are and what we
write, says novelist Bellow, is
found in our schools:
tlsn't it true that in high
school most of us read every
thing except what we are re
quired to read in class?"
He moved on to college
which for him was a combination
of the three universities of Chi
cago, Northwestern and Wiscon
sin: "The colleges take tne mi
mor out of literature. They turn
it into a serious and solemn busi
ness, a sort of religion, like
something for Sunday only."
Still offering examples from
his own varied experiences, he
recalled his years in Chicago,
and the "Chicago school" of
writers consisting of Floyd Dell,
Ben Hecht, Carl Sandburg, Sher
wood Anderson, James T. Far
tell and others:
-Meant a Lot'
"It meant a lot to us that Har
riet Monroe published 'Poetry''
Magazine there, and that Covici
even published books."
He finds now that writers are
using native material, the ma
terial right af hand, under their
noses. "For the first time they
use as subjects something which,
before, they were too immersed
in to recognize as potential sub
ject matter" , j
But they must use it, he believes,-by
writing in a domestic
American style of their own:
"You can't portray Chicago writ
ing like Truman Capote."
When we get novels composed
out of this indigenous material,
who's soinr to read them?
"There is a limited number of
things to which people respond
with their deepest emotions.
Bellow explained. "Right now
those things are our great pro
duction facilities, our manufac
turine. our goods, our size, our
science. But our social health.
as well as our individual health,
requires us to pay attention to
other things, to the things of the
heart, the personal things" out
of which he wants novels to be
made. Then those novels will
matter to the public : more than
the usual land of stories da
Feelings Freely Shown
While he was in Europe on a
Guggenheim fellowship, he no
ticed that people let their faces
express their emotions, and they
showed their feelings freely in
their flowing gestures. In this
country, "some , emotions are in
danger of atrophy for lack of
practice in expressing them.
When I go to the theater, for ex
ample, it seems to me sometimes
that the actors and actresses are
undergoing -a test to discover how
much of then .hopes and fears
and heartaches; they can keep
from showing.
'Born in 1915 in Quebec, Bel
low came here , at nine with his
parents. He his taught at the
University 'of Minnesota and at
Princton and is now on the fac
ulty of Bard, a college a few
miles up the Hudson from this
city, ; i s
He has thought of trying news
paper work, but teaching gives
him, he figures, more time to
write. He goes at it slowly, too,
it seems; his Jirst novel, "Dan
gling Man;" appeared in 1944;
his second. TThe Victim," in
1947. This! is his third.
The five judges who selected
"Augie Marcbf from the hun
dreds of other 1953 novels for
this fifth I National Book award
were David I Dempsey, Leon
EdeL Mary McCarthy, Arthur
Mizener and Gerald Sykes. Win
ners, already announced, in the
other tw) fields were conraa
Aiken fori his 3"Collected Poems"
and Bruce Carton for "A Still
ness at Appomattox."
2 Rosenberg
Boys Given to
Jit
Grandmother
NEW YORK UP A court sent
the two sons of executed atom
spies Julius and Ethel Rosenberg
to live with! their grandmother
Mrs. Sophie Rosenberg, Saturday
on her promise to bring them up
to love the United States.
The City Welfare Department
and the Socitty for Prevention of
Cruelty to Children had com
plained that the boys, Michael. 11,
and Robert, 1 6, were being ex
ploited for pund-raising proposi
tions" by! Communist groups.
The boys had been living with
Abel Merropol, a song lyricist?
and his wife Ann, both of whom
have denied 'they allowed any ex
ploitation! They said that, on the
contrary. 1 they shielded the child
ren "as much as is humanly pos
sible." ?
The Merrdpols were friends of
Emanuel JBldch, the Rosenberg de
fense attorney who died Jan. 30.
The -Rosenbergs specified in their
wills that they wanted Bloch to
be named legal guardian of the
boys.
State Supreme Court Justice
James B. M. McNally gave cus
tody of i'thi boys to the grand
mother pending outcome of
hearing Tuesday on a petition by
the Crtyiwelfare Department
McNally 1 spoke, however, as
though the children would continue
to live with the grandmother.
When i McNally announced his
decision j Michael walked up, shook
hands with' him, and said:
"God bless you, Judge.
The bcjys parents were executed
last June 19 for conspiring to steal
American atom bomb secrets for
Soviet Russia. . i
sition unless - Republicans them
selves proposed new income tax
CUU. .i- i r
Retreat Slightly
And Republicans on the Ways
and Means Committee retreated
slightly Friday softening a pre
viously approved cut in taxes on
stock dividends, which was under
strong Democratic assault
But administration officials and
most Republican congressional
leaders generally held firm, de
nouncing the Democratic move as
political and predicting it still
would be beaten. i
Democrats generally are sound
ing a war cry that a program
proposed by President Eisenhower
is a "neb man s tax bill tuu of
give-aways" to big business, and
wealthy stockholders, providing
only light and scattered relief for
the average taxpayer. - I
Republicans are tuning up their
oratorical thunder to declare the
Democratic alarums are political
eyewash that the program is
carefully balanced to give neeaea
benefits to all, to help expand busi
ness production and provide more
and better Jobs and mgner living
standards for years ahead. t
More Incentives
Democrats counter that business
can't sell as much as it can pro
duce right now. What is needed,
they say. is not to give more in
centives to expand production but
to pour more money into the hands
of consumers to increase purchas
ing power.
Republicans come back with the
argument that this huge revenue
loss, on top of other cuts in effect
or planned this year, would wreck
the budget and the administra
tion's effort to fight inflation.; If
this cut were enacted at the ex
pense of business incentives, they
contend, the workers it is supposed
to help actually would be hurt
most
They say simply: More tax cuts
from the paycheck will be of little
value if there is no job to make
the paycheck in the first place.
And Republican leaders vow con
fidence they can beat the exemp
tion increase in the closely divided
House: 219 Republicans, 215 Dem
ocrats, 1 Independent
Argument Growing
: Thus the argument has been
building up, bit by bit, before con
gressional committees and in the
cloakrooms for weeks. It looks like
a real two-party fight, with party
leaders claiming few defections
from either side actually a rela
tively rare lineup.
It is scheduled to explode on the
House floor within about two
weeks, when the Ways and Means
Committee presents an 800-page
bill rewriting almost all the ; na
tion's tax laws and giving a basic
new look to the tax structure.
The committee has been work
ing on the bill off and on for more
than a year, and daily for the past
several weeks. It changes no ma
jor rates, but includes scores of
provisions removing alleged ; in
equities for both individuals and
business. As it stands now, it would
save taxpayers altogether about
1 billion dollars the first year,
probably more later.
What is the proposed new look
for the tax structure?
For individuals, it is aimed al
relieving many sore points that do
not add up relatively to a lot of
total dollars but may be very pain
ful to those affected.
Bigger Deductions
It allows much bigger deduc
tions for medical expenses; a new
deduction for child-care expenses
of widows, widowers or separated
parents who work; a $1,200 deduc
tion for retirement income; an ex
emption for dependent children
even though they make $600 or
more a year (forbidden now); re
duced tax .rates for single heads
of families; and a deduction for
the soil conservation expenses of
farmers.
All these savings would add tip
to roughly 600 million dollars
year. " v
One provision would aid both In
dividuals and' business a cut
in taxes on stock dividends. Some
four million individuals would ben
efit through lower tax bills.
if
amounting to 240 million dollars
the first year and up to a billion
or f more the third year, as the
bill stands now.
Weald Aid Buiness
Business would tend to benefit
because the plan would help com
panies sell stock to finance ex
pansion, some businessmen are
concerned because in the . past 10
years, 75 per cent of business fi
nancing has been through sale of
bonds, bank borrowing or other
fixed indebtnesa. They say a busi
ness heavily in debt, with fixed
obligations to pay, doesn't venture
as readily into new fields: and
if .business should turn down, the
pinch is sharper and more immediate.
Democrats have concentrated
most of their fire on this proposal,
charging that 80 per cent of the
relief would go to 300.000 wealthy
families who own more than $25,-
000 each in stocks. They figure
the aver are 'of these 300,000 fam
ilies would save $9,000 in taxes in
the third year, as the. proposal
was originally approved.
Was Originally Approved
But the committee voted Friday
to knock out the third round of the
original three-stage plan, thus re
ducing the ultimate tax saving in
volved from $1,250,000,000 to $866
millions.
t The other big Incentive to busi
ness is a proposal to allow much
more rapid tax deductions for de
preciation of new plants and equip
ment Although ever a period of
20 years or more this theoretically
would result in no loss in revenue.
it amounts to about 350 million
dollars the first year and much
more the second year.
Encourage Expansioa
The idea is to encourage, by
bigger immediate deductions, ex
pansion into new ventures and new
products; and to encourage replac
ing of outmoded and inefficient
plants and equipment
Sponsors say many such "mar
ginal plants are the ones that are
closing now because they can t
make the grade as business gets
more competitive, thus contribu
ting to the present economic dip.
The program also provides
scores of other steps to help busi
ness encouraging research, let
ting a business keep more profits
for future growth, letting more
losses in bad years be used ' to
offset profits in good years, re
ducing taxes on operations abroad;
and generally giving business
freer, more sympathetic tax cli
mate.
Would all this really give busi
ness a nit and put tne economy
back on the high road?
Many Democrats say the ap
proach is basically wrong, that the
key still is to put more purchasing
power in the hands of consumers.
Production will expand automatic
ally to satisfy a growing consumer
market they say but no amount
of incentives will lead to business
expansion if markets are weak.
Republicans ate recent billion-
dollar expansion programs an
nounced by General Motors and
the steel industry as specific ex
amples of the shot in the arm
they expect from the tax program.
One administration official has
advised friends that within three
days, 50 business firms reported
they were ready to embark on
new plants, new products or other
expansion ventures if what they
considered to be restrictive tax
laws are amended and the tax
climate is made more favorable
for risk-taking.
New Products
The key to market doldrums,
Republican spokesmen argue, is 'o
get rid of outmoded equipment and
to produce at lower prices, to de
velop new products and new uses
for older products. Secretary of
the Treasury Humphrey has esti
mated roughly that two-thirds of
the jobs provided by the economy
today stem from products that
were almost unheard of 30 years
ago and said the same thing
will be true 30 years from now,
if business is given a climate to
advance.
As for the division of tax bene
fits between business and individu
als. Humphrey has contended the
overall full-year program must be
considered not just the revision
bill. I
- not just tt
billion dollars in annual Individual
income tax cuts and two billion
dollars is reductions from expira
tion of the excess profits tax on
corporations, both Ion last Jan. L
Provided by Demos
Democrats point; to the fact that
these cuts were provided in legis
lation .passed i by t Congress when
it was under Democratic control.
Republicans reply that the cuts
couldn't have been permitted to
take effect except for economies
made by the Eisenhower adminis
tration. .-. :. I ;' 1
The over-all 1 tax program to
which Humphrey referred also in
cludes the tax revisions on which
the f House committee has been
working; and cancellation of a two
billion dollar; cut in corporation
taxes and a one, billion dollar re
duction in excise or sales taxes.
both set automatically for April X.
In Humphrey's view, the Idea
of bolstering the! economy by def
icit spending and restrictive busi
ness taxes has been tried, and
failed. His argument goes like this:
Inflate Spiral j
After seven, years of the New
Deal, 9tt million persons still
were jobless in 1939. Then the
buildup for i world War II. war
itself, the pent-up demand for
goods after the! war, and finally
the Korean I conflict an kept
business on an J artificially stimu
lated and inflationary spiral
But sow the economy la at a
crossroads. Barring new defense
emergencies, business is going to
have to learn to get along again
without inflation on its own.
Thus a tax program is needed to
encourage business to expand and
bridge the gap; left by reduction
of government spending. Expan
sion, he emphasizes, means more
jobs and that
chasing power.
means more pur-
But Democrats also argue that
the Republican theory they call
ttj the "tricklei down" theory
was tried . curing the 1920 s and
in other periods and always has
brought depression.
In the background of all this
argument is the fact that Repub
licans concede if the economy
really heads toward a tailspin
they wiU use more tax reductions
and a host of other weapons to
fight depression.
rAnd some Republicans in Con
gress facing election campaigns
within a few months are no
ticeably more restive over the tax-
cutting issue than some adminis
tration officials.
Monks From :
Korea Camps
Now in Reich
5
,, By RETVHOLD. G. EN'SZ -WUERZBURG.
Germany to
Eight Benedictine monks who en
dured the hell on earth of Korean
prison camps have settled in a
peaceful; monastery here in the
Bavarian mils. i
Now. as they go their appointed
religious rounds, they recall the
days when they were forbidden
even to ; fold their hands in pray
er. !-v-. i ;;V- v -
All were arrested on the night
of May , 1949, and thrown into
a Pyongyang Prison where 20 per
sons often occupied a room only
25 feet ! sauare. The Communists
said their arrests were necessary
to "ensure freedom of religion.
By freedom of religion.' says
one bearded monk, "they meant
freedom from religion or com
pulsory atneism."
And another added, "w were
not permitted to read a word in
five years nor could we write
to anyone. - s;
Moved to Maacaaria . '
From Pyongyang they were tak
en to a prison camp in what they
caned "ueatn canyon." Later.
when United Nations troops drew
near, they were moved to Man
churia, when the UJV. troops re
treated they were marched back
to ; "Death Canyon."
The march, said one. came "aft
er We had spent two nights and a
day almost freezing to death on a
frozen Manchurian field."
Back in camp they found that
62 prisoners were herded into two
small t houses. They built eight
more houses themselves and set
about ; growing crops. . But their
guards not they got the eggs
their hens laid and the vegetables
their garden yielded.
"Our Red captors had left us to
die alone," said one, "and 17 of
our men and two of our sisters
succumbed to their evil wish. Ev
en the sick were forced to work
when one was too sick to move he
was permitted to remain indoors
and his starvation ration was
cut in half."
Services Allowed
! Religious services were permit
ted once, a day in camp. An old
box served as altar. The guards
constantly interrupted mass by
shouting out the names of those
who were to report for work de
tails.
Suddenly last Nov. 19 things
changed. They were taken to an
other camp and given food "fit
for kings." Then began their home
ward journey across Siberia "the
empire of silence, one calls it
"Between the Yak and the Oder
people know how to keen secrets.
Not only do the lips of the people
Statoammv Salem, Grew Smw Feb 21 1S34 Cee. S3--8
Trio Arrested
On Forgery
Counts Here -
; S i
' . : p
EUGENE (A Three men were
in : jail here - Friday! on forgery
charges after a tip by a suspicious
merchant had led to their arrest
by state police, as they drove be
tween Albany and Salem.
City police were trying to find
out who had passed several bad
checks in Eugene and Springfield
stores Thursday afternoon when
the merchant called in the license
number of a car in which a man
who had tried to cash a check had
driven away.:. , . j k -,.
Arrested in the car were Allen
Welsh. 23. and Scott JewelL SO.
both of Seattle, and Lyle Fleisber,
24, Longview. i
Six bad checks were passed, most
of them for $25 but one for $50.
refrain from uttering a sound, but
also their faces dare not show any
expression.M
De they want to stay here in
this land of plenty?
Ho. All want to return to Korea.
As one put it: "Our lives .are
there.- - j . ' .
Neuberger,; 1
Hess Tie fori
Demo Honor
.... . .
PORTLAND (J) After a tie
between State Sen. Richard L.
Neuberger and U.S. Dist Atty.
Henry Hess, the Willamette Demo
cratic Society decided Saturday to
wait until after the Hay primary
election before voting again on the
Democrat of the Year for 1951
Neuberger and Hess got seven
votes each, and Mike DeOcco,
president, of the society, then pro
posed the postponement, comment
ing. 1 wouldn't want such a se
lection to give one primary candi
date an advantage over another.'
Neither Hess nor Neuberger has
declared for office this year, but
both have toen mentioned as pos
sible . Democratic candidates for
governor. There also has bees
speculation that Neuberger might
seek nomination for the U.S. Sea
ate. - . - . f- .i ,
Americans, on the ! average,
drink about a pint of win a week
and Frenchmen about a pint a
day.- . ;
feffalWQeJ OplMMlfMb
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REPRESENTING
ZILRA, SI1ITIIER Ci CO., IIIC.
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