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EUGENE, OREGON, MONDAY, JANUARY 21, 1946
NO. 21
'ike Total 1,680,000
(.1. CljJ lAf AI.IAI.I Ant
In Jlcci VVUIKUI3 VUi
Urnment Seizure
jvteat Plants seen
l- TTnited Press
tuts in steel mills from
L (oast seni
fetrike-idled American
a new iuK" "i
miehtiest strike blow
r " . -wt n -" -1 i .
bed at u. o. umuonj.
bated 750,000 steel
went on me juu m
i,nfo located m ou
30,000 workers went on
farm eauioment In
here members of the CIO
tut on the International
V company in n
nrAerlv
Li rfrike was orderly,
burs after it started there
one report oi a tuoiuiu-
hat was at uincinnau
Inon-striker was arrested
I. s nistol at pickets.-
tike started officially at
L Ph 1 o Murray, presi
de steel workers and of
said it was luu per cran
Murray said the next
s im to the company in
Jte over the union's wage
strike Fronts
fcernment reportedly was
nrf a strike of nearly
tin and AFL packing-
. r
tnrkers By seizure oi
bd meat plants, possibly
r-k.
ihile. Labor secretary
Schwellenbach called a
te tomorrow witn um-
fhe westinghouse ana
Electric companies and
kcd Electrical Workers
those 200.000 members
fcn on strike since last
fork's vast transportation
kras threatened as CIO
workers officials an
that a date would be
kieht for a strike of 32,
tray, streetcar, bus and
workers.
Ike Effects
i Production Administra
D. Small in Washington
le steel walkout a "na-
bsler." He warned that
t lories would be forced
wn or curtail operations
ft steel, adding still more
to the nation's strike
t places, supervisors and
ce employes were passed
ipicket lines by mutual
It of the management and
government official said
fcpeared the only course
K tne six-day meat strike
pishing supplies, already
a per cent of normal,
bo date had been fixed,
pt might come tomorrow
feday.
number of strikers
pi all-time high, congress
no act on ton-priontv la
ana other reconversion
The house labor com.
tes tomorrow on Presi.
nan's request for fact
iiachinery to prevent
Pn Andrew X Mav m
fie house militarv affairs
saia tne "sentiment of
on is gettine much
for action. He warned
committee would start
laoor 01 s f the lahnr
f failed to act.
Ordered
el's "Suicide"
PHtRG, Jan. 21 (U.tO
r'Jnai trwin Rommel,
s Desert Fox," drank
f an alternative
F '8 against Adolf Hitler's
its m allied hands
'ersonally ordered Field
Wlhelm Keitel to arrest
'Or cnmn ipifi. l
1944 bomb plot against
a defendant in the war
arr 7 Senerals to
gmel must commit sui-
by the nazi's
itt PLes court" as a
I, I tte document said.
femely reluctant"
Sfe! s death, and he
S"wran Goering,
brli died of "blecd"
ufferM h SUIt o sku11
thi a dunng an al"ed
ldocumenu state.
odden Park
fDue Tuesday
in strailer nons to
start dn park " -
wammg in fcy T-
i itt ??er' manager of
Work I5601' rPorted
T for S Eetting
'8 a, rL ccuPancy is
id it?P!.dly as Possible,
i shaii hopid that they
ape in about three
r .ttehoiw. have
r hat? but appU-
S AoanVhan-Ce yet- be
st th t-P lcat,on should
an Jngene 'r the
office can be set
WITH GLEEMEN Stacey
Green, above, of the music school
faculty at the University of Ore
gon, will appear as accompanist
with the Eugene Gleemen in their
20th anniversary concert Thurs
day evening in McArthur court.
(Kennell-Ellis photo. Wiltshire
engraving.)
see Story on Fage 3
Kimmel Terms
P. H. Attack
Jap Mistake
WASHINGTON, Jan. 21 UP)
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 sen
ate-house inquiry committee, the
former Pacific fleet commander,
said it was probable no attack
would have been attempted if the
American ships had been sent
back to the west coast.
Rep. Gearhart (R-Calif) not
ed that KimmeVs predecessor.
Admiral J. O. Richardson. 'Tia'a
sought unsuccessfully to take his
ships back to the west coast to
prepare them for war but was told
by Waashington officials that tne
fleet was to be kept in Hawaii
a deterrent to Japanese ag
gressive moves.
Uearhart said there had been
"a studied effort almost a fran
tic effort on the part of some com
mittee members to develop the
idea that the presence of the
fleet in Hawaii was in some way
a deterrent to Japan."
Was it such a deterrent on
Dec. 7, 1941, he asked.
'They made an attack, sir,"
Kimmel replied.
Gearhart expressed belief that
the youngest ensign in the Japan
ese navy would not have been so
foolish as to counsel an attack on
the fleet if it had been on the
west coast.
"The Japanese did a lot of fool
ish things in the war," the wit
ness said. "Their greatest mistake
was the attack on Pearl Harbor."
He added that the Japanese
might have caused more effective
damage if they had destroyed the
Pearl Harbor base. He said dam
age was "negligible" to permanent
installations, used to repair dam
aged ships and keep the other
units operating.
He said the slow battleships hit
at Pearl Harbor were not of much
use early in the campaign because
they couldn't accompany the fast
striking forces of carriers, cruis
ers and destroyers, and that the
most useful unite escaped dam
age, SHOTS INVESTIGATED
Shots rang out at 13th and
Chambers at 8 o'clock Sunday
evening, but investigation proved
that a teen-age boy, apparently
shooting at nothing in particular,
was responsible.
Fraser Accuses
Nations Of Balk
On Trustee Plan
LONDON, Jan. 21 u.R Prime
Minister Peter Frazer of New
Zealand today accused France and
South Africa of treating the UNO
trusteeship charter as a "scrap of
paper", by trying to keep their old
League of Nations mandates from
control of the new world organi
sation.
rraser was cheered and ap
plauded loudly as he told the UNO
general assembly that both France
and South Africa have clearly im
plied that they intended to annex
the mandates given them by the
league rather than turn them
over to UNO trusteeship. .
His statement apparently was
also an implied rebuke to the Un
ited States which has indicated it
intends to retain strategic control
of the Pacific island mandates
wrested from Japan by American
iorces. .
Moscow Plan Adopted
The trusteeship issue came to
the fore after the UNO's political
and security committee had adopt
ed unanimously the Moscow reso
lution for establishment of an
atomic energy commission.
The resolution still requires
formal approval by the full as-
semoiy cetore the commission can
actually be created. But the same
early action appeared assured.
since all 51 United Nations were
represented on the committee.
British Foreign Secretary Ern
est Bevin led the campaign for
quick action. He said the resolu
tion had been circulated for 16
days and no nation had proposed
an amendment. If there were
further delay, he said, the world
would cot understand.
"The people of the world may
think we are not as serious about
this important subject as we
should be," he said. "This com
mission should be set up as soon
as possible to begin grappling
with its serious problems.
Connally Supports
Sen. Tom Connally (D., Tex.),
opened the debate before the com
mittee with an appeal for quick
creation of the commission. He
said the Moscow resolution pro
vided the necessary safeguards
from atom bomb secrets "at every
stage."
UNO officials, meanwhile, were
considering how to handle Iran's
complaint against Russia, which
was submitted officially on Sat-day.-
-
The security council probably
will receive the protest at its next
regular meeting.
Social Democrats
Win In Germany's
First Free Election
FRANKFURT, Jan. 21 (U.R) A
final tally on Germany's first free
elections since 1933 revealed to
day that the left-wing social dem
ocratic party scored a three-to-two
popular victory yesterday
over the rightist Christian demo
crats in the heavily Catholic
Rhineland.
Early returns put the Christian
democrats well out in front in the
17 Hessian counties where town
ship councilmen were being elect
ed in communities with popula
tions of 5,000 or less.
The social democrats came back
strongly in the late balloting, how
ever, and finished up with a pop
ular vote of 146,508 against 99,591
for their principal opponents. The
communists trailed badly in third
place with 16,608 votes, although
they held a three-to-one margin
over the extreme right-wing lib
eral democrats who tallied 5,662
votes.
Neither the communists and lib
eral democrats entered complete
slates in all the electoral districts.
The final count showed that 83
per cent of the electorate voted in
the counties where balloting was
scheduled.
Voters in other townships, out
side Berlin, with populations up to
20,000 will hold similar elections
throughout the American occupa
tion zone next Sunday.
President's Message Brings
Filibustering Solons Respite
WASHINGTON. Jan. 21 OJ.F!)
f ilibustering southern democrats
gave their throats a welcome rest
today while a clerk read Presi
dent Truman's 25,000-woid state-
oi-the-union and Budget message
in the senate.
Thev aareed to the reading.
however, only after receiving as
surance mat tne interruption
would not jeopardize their fili
buster against a bill to create a
permanent fair employment prac
tice commission.
John Crockett. 81-year-old sen
ate reading clerk, began reading
the message a few minutes after
noon. Twenty republicans, 13
democrats and Sen. Robert M.
LaFollette (Prog., Wis.), were in
theii" seats at the time.
Delay For Quorum Call
In the house, reading of the
message began at 12:06 p.m., and
was interrupted a few minutes
later by a demand for a quorum
call.
Ren. Robert F. Rich R.. Pa.),
rose after one page of the mes
sage had been read.
' I want the President s message
to be heard by the house," Rich
'I coaka a point oc racr
that there is no ouorum present"
About 40 republicans and 30
democrats were in the chamber.
House speaker pro tern, John
W. McCormack (D., Mass.), or
dered the clerk to call the roll.
The roll call was completed at
12:33 p.m. with 303 members
present, a quorum.
Members walked in and out as
the reading progressed. Others
sat in their seats, listening with
varying degrees of interest. One
republican read a newspaper part
of the time. A democrat scanned
the Congressional Record.
Shortly after the roll call was
completed, only about 150 mem
bers remained in the house.
Senators Thin Out, Too
In the senate after the clerk
had been reading 30 minutes, his
listeners had thinned to 13 demo
crats, 12 republicans and LaFol
lette. The clerk was reading
every word, distinctly and slowly
and with much more expression
than usual.
The time necessary for reading
the message in the senate gave
the filibustering southerners a re
spite from their task of trying to
talk th "FC bill to deativ,
Gen. Washington's
Cannonball Makers
Hit First Labor Snag
HIGH BRIDGE, N. J., Jan. 21
C4) The steel strike has shut
down the Taylor-Wharton Iron
and Steel company, oldest mu
nitions factory in the nation and
supplier of cannonballs to Wash
ington's armies during the revo
lution. . "For the first time in 204
years Taylor-Wharton has been
closed by labor trouble," George
R. Hanks, president of the firm,
said today as pickets of local
1077 of the United Steel Work
ers of America (CIO) marched
in front of the steel plant where
650 were on strike.
, The company has boasted
continuous operation since its
founding in 1742.
;
Communists
Bid For Post
De Gaulle Left
PARIS, Jan. 21 (U.PJ The com
munist party made its greatest bid
for power in France today by de
manding that its leader, Maurice
Thorez, be named president to
succeed Gen. Charles De Gaulle,
who resigned last night.
The communists issued a com
munique demanding election of
Thorez to the De Gaulle post after
a noontime meeting of communist
deputies. Thorez is secretary gen
eral of the party.
Jacques Duclos, communist
party secretary, announced after
conferring with the popular re
publican party leaders and later
with socialist leaders that the
communists were demanding the
president's post in a new coalition
government.
The communists are the largest
political party in France, but they
are too weak to form a govern
ment without joining a coalition
with at least one other major
party, probably the socialists. Ex.
cellently informed political ob.
servers believed the communists
would fail in their efforts to cap.
ture the presidency.
The consultative assembly was
expected to meet at 3 p.m. Tues
day to hear De Gaulle's resigna
tion letter read officially. Heads
of all political parties will speak
in the debate leading to election
or a new president.
Communist tactics seemed tor
an attempt -to-form a purely left:
wing government with the social
ists and radical socialists, headed
by a communist. This would be
virtually a revival of the 1936
popular front.
Duclos said such a government
would be logical, since the com.
munists were the largest party.
If the socialists refuse to accept
a communist president, the lead
ing choices for president of a left
wing coalition were Former Pre
mier Edouard Herriot, radical so
cialist, and Vincent Auriol, social
ist .minister of state.
De Gaulle definitely will retire
from politics for the present, ob
servers believed,, despite forlorn
popular republican efforts to
change his mind. Many astute
observers believed he would re
main aloof from politics until the
nation grows weary of squabbling
ana demands his return, presuma
bly after the June elections.
Lane To Get $129,000
From 0 and C Lands
. Lane county is scheduled to- re
ceive $129,997.87 as its share of
payments in lieu of taxes on Ore
gon and California revested lands,
according to Otto C. Krueger.
O. and C. chief forester at Eu
gene. For the fiscal year ending June
30, 1945, a total of $856,375.97 has
been certified to the claims divi
sion of the general accounting of
fice lor payment to the counties
in which the revested lands are
located. The total amount will
be divided among the so-called
land grant counties in proportion
to the valuation of the railroad
lands in these counties at the
time title reverted to the federal
government.
When Lane county receives its
share for 1945, it will bring the
total payments to this county in
lieu of taxes on revested lands
since 1917 to approximately S2,
823,564.75. This amounts to an
average annual payment of $97,
364.30 to Lane county since 1917,
said Kreuger.
'Under the U. S. department of
Interior program for the sus
tained yield management of the
revested railroad grant lands, it
is anticipated that perpetual for
est crops on the lands will con
tinue to produce substantial rev
enues for the counties. As none
of the lands are being sold, the
principal source of revenue is
derived from sale of mature and
over-mature timber, with addi
tional revenue coming from graz
ing leases on lands where forest
growth will not be retarded by
regulated grazing use."
Snyder Warns
Of 'Economic
Pearl Harbor'
WASHINGTON, Jan. 21 (Pi-
Reconversion Director John W.
Snyder declared today the threat
of inflation must be met by price
controls and rising production to
head off an "economic Pearl Har
bor."
Production for civilian use al
ready is at an annual rate $20,
000,000,000 greater than four
mouths ago, Snyder said in a year
end report to tne president ano
congress. But the time cannot be
foretold now when industry will
come abreast of the soaring puo.
he demand for eoods. he added.
Snyder urged strongly that the
price control act be extended be
yond its scheduled midyear expi
ration date, saying:
"It would be foolhardy not to re
cognize that the excess of demand
over supply throughout the eco
nomic system may continue far
beyond June 30."
More Jobs Than Expected
Unemployment and inflationary
pressure may hit their peak
simultaneously early this soring.
Snyder said. However, joblessness
will be below former estimates.
It now is around 3,000,000, com
pared with the 5,000,000 or 6,
000,000 government agencies had
expected.
"The basic need at this particu
lar time to meet both situations is
more production," the reconver
sion director declared.
"We must race to expand our
output. We must smother infla
tion with a steady stream of
goods. We must speed up the
wheels of industry to create the
jobs our workers and veterans
need.
Summary of Expectations
In 73 pages the report forecast
what 1946 would bring in these
vital fields:
Food Americans may eat more
than in the record .year 1944, when
consumption was 1 1 per cent above
tne pre-war average.
Housing "Our most serious
shortage". Private building will
start "the fastest upswing in its
history." But demand will be
several times greater than the new
construction supplied.
Jobs Business cannot exnand
quickly enough to absorb In the
near future the 4,500,000 veterans
to be freed' in the next half-year.
along witn, newly discharged
government and war plant
Clothing shortages will persist.
Demand for cotton goods will top
supply by 20 to 50 per cent.
Trade May double the 1939
total of $40,000,000,000 in sales,
and thus far exceed the 1945
record.
Automobiles The industry ex
pected "before the strike" to make
4,000,000 cars this year, and has
laid the physical basis for such a
volume, topped only in 1929.
Agriculture To safeguard farm
Income, congress should authorize
"direct payments to farmers where
necessary" instead of the present
metnod of supporting prices.
Strikes, Inflation Threats
Are Reconversion Brakes,
Truman Tells Legislators
Proposed Budget May Bring
Reduction Of National Debt
1 '.-
mm
WASHINGTON. Jan. 21 (AP) President Truman asked
congress today to get behind a sweeping program he said
will promote greater output of lower cost goods by higher
paid workers.
And he cautioned that "voices or disunity" wtnen "are
beginning to cry aloud again . . . must not prevail.
In a 25,000-word document combining tor the iirst time
both lawmaking and budget recommendations, the chief ex
ecutive mixed expressions of optimism over business and
job potentialities with fresh warnings against inflation and
concern over "major strikes."
In his budget, Mr. Truman pegged government expendi
tures during the fiscal year
beginning next July 1 at $35,-
860,000,000 only $4,347,000,-
000 above anticipated income.
And, by drawing on the
treasury's cash balance, he
said the national debt can be
Lane Fair Dates Set
For Sept. 18-21
Lane county's first fair since
1941 will be held September 18-21.
Those dates were set Saturday
in Portland as representatives of
the local fair board met with of
ficials of other counties to set up
the schedule of the autumn aeri-
cultural expositions to avoid con
flict. Gus DeVos, Springfield,
chairman of the board, and Len
nie Haldorson, Eugene, secretary
manager, were both in attendance.
President of the Oregon Fairs
association include Mabel H.
Chadwick, Eugene, who was elect
ed secretary-treasurer. Herman
H. Chindgren, Molalla, was re
named president.
Greece Under Martial
Law After Uprising
ATHENS, Jan. 21 U,P The
Greek government imposed rigid
martial law in the southern Pelo
ponnesus cities of Kalamata and
Sparta today and dispatched mo
torized forces to subdue an upris
ing by the monarchist "X" organi
zation that has cost 60 lives.
Prime Minister Themistocles
Sophoulis ordered establishment
of courts martial with powers to
carry out sentences immediately.
Arrest 01 the "X" leaders in the
two cities was expected.
Flood Control Group
Meet Here Monday
The Amazon creek project and
other flood control measures will
be discussed at a dinner meeting
Monday at 7 p.m. in the Eugene
hotel.
Representatives from nine Wil
lamette valiey counties will be
present to hear Col. G. J. Zim
merman, district engineer for U.S.
engineers, Portland, and others vestiges of, Japan's ability to make
JteJc pn.ttui ubjci. J war.
Vanport City Fires
Still Being Set
PORTLAND. Ore.. Jan. 21
W) Vanport City's Incendiary
fires are still continuing although
a boy who police said confessed
to setting several of the blazes is
in jaiL
Deputy sheriffs reported a $3000
Incendiary In two housing pro
ject apartments Saturday night,
Vincent W. Hunt, 17, Vanport
City, was in jail at the time.
'Mac' Orders First
Jap Reparations
TOKYO, Jan. 21 (U.R) The
first reparations demanded from
Japan were ordered seized bv
Gen. MacArthur's headquarters
today in a directive placing under
allied military control nearly 400
Japanese aircraft plants, army and
navy arsenals and war materials
laboratories.
The action destroyed the last
reduced for the first time in
37 years from an expected
$275,000,000,000 next July to
$271,000,000,000 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 of his message, Mr. Truman
termed establishment of a "fair
wage structure" the "most serious
difficulty" in the path of recon
version and expansion, adding:
"The ability of labor and man
agement to work together, and
the wage and price poliices which
they develop, are social and econ
omic issues of first importance."
Presents Wage Theory
He said labor and management
must establish "better human re
lationships," and apparently
mindful of his recent fruitless ef
forts to avert the nationwide steel
strike declared:
"No government policy can
make men understand each other,
agree, and get along unless they
conduct themselves in a way to
foster mutual respect and gooti
will.
Mr. Truman said most indus
tries and most companies "have
adequate leeway within which to
grant substantial wage increases."
Elaborating on his higher wage
theory, he said:
"Good wages mean good mar
kets. Good business means more
jobs and better wages. ... Sub
stantial wage increases are good
business for business because they
assure a large market for their
products; substantial wage in
creases are good business for la.
bor because they increase labor's
standard of living; substantial
wage increases are good business
for the country as a whole be
cause capacity production means
an active, healthy, friendly citi
zenry enjoying the benefits 01
democracy under our free enter
prise system."
Urges Western Development
In promoting an increase in
supplies at low unit prices, he
said resources and enterprises
must be developed all over the
country, particularly in undevel
oped areas of the west and south.
He said he was asking the secre
taries of agriculture, commerce
and labor to explore jointly meth
ods for stimulating new industries
in areas with surplus farm labor.
Speaking again of the strike
situation, a headliner for con
gressional debate, the chief exec
utive asserted:
"Within the framework of the
wage-price policy there has been
definite success, and it is expected
that this success will continue in
a vast majority of the cases aris
ing in the months ahead.
"However, everyone who real
izes the extreme need for a swift
and orderly reconversion must
feel a deep concern about the
number of major strikes now in
progress. If long continued, these
strikes could put a heavy brake
on our program."
Reiterates Domestic Program
The President called anew for
action on his entire domestic pro
gram, including his proposal that
SEE PROPOSED BUDGET
PAGE 3
Federal Foresf
Funds Increased
WASHINGTON, Jan. 21 W
Faced with a drain on the na
tion's resources under its care al
most 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 $3,000,
000 a year for purchase of private
forest lands and to allow an over
all increase of $10,000,000 In the
forest service budget
His request for $38,251,500 for
this purpose during the 1947 fis
cal year was sent to congress to
day. The 1946 total was $28,365,-
500.
Chief Forester Lyle T. Walts
In a statement today accompany
ing his annual report, says an
"adequate forestry program"
would create an additional 2,500,
000 jobs. Normally, the forests,
directly or indirectly, he said, pro
vide about 3,750,000 jobs.
He estimated that lumber need
ed for domestic consumption In
the next 10 years will average
about the same as the wartime
demand. Wartime timber cutting,
together with losses by fire. In
sects and disease, he said, were
about 50 per cent greater than
annual timber growth, and warn
ed: "Forest depletion today !s so
serious that positive action to in
crease growth Is imperative If fu
ture employment In forest Indus
tries is not to be jeopardized by
lack of raw material."
He reported that' to meet this
problem, five new forest service
field units will be set up this
year and tnat, within the next III
years, 2,500,000 acres of denuded
land in national forests will be re
planted. The field units, similar to those
which were set up last year In the
south and northeast. 'are to bring
research findings of the forest
laboratory at Madison, Wis., to
the field and take local problems
dbck to tne laboratory.
Highlights
Of President's
Domestic Views
WASHINGTON. Jan. 21 U.R)-i
Major points on domestic affairs
from President Truman's mes
sage to congress:
Strikes Cause "deep concern;"
statutory fact-finding and cooling
off periods again urged; most in
dustries should make "substantial
wage increases:" "business is a
public trust and must adhere to
national standards in conduct of
its affairs;" labor too must show
greater responsibility.
Taxes "This Is no time for tax
reduction."
Draft and demobilization Draft
must continue unless more men
volunteer; 2,000.000-man army
necessary throughout this year;
by June, 9 out of 10 men who were
in service on V-E day will be out.
Inflation "Our chief worry;'
price and rent control must be re
newed; price control must be ex
tended to new and old houses;
food subsidies must be continued.
Budget Fiscal 1947 expendi
tures to be $35.8 billion; receipts
$31.5 billion; deficit $4.3 billion.
Despite deficit, national debt to b
reduced from $278 billion now to
$271 billion in 1947 by cutting
treasury's largo cash balance.
War and military costs Will ba
$15 billion in fiscal 1947; direct
cost of world war II to U. S. now
totals $354 billion.
Aftermath of war $4.7 billion
for veterans payments In fiscal
1947; $5 billion for interest on
debt; $1.5 billion for tax refunds.
Housing "An immediate em
ergency and a major postwal
problem.1 Stop-gap actions hav
been taken; production is the real
answer. Wage and price adjust
ments will be made where necessary.
Full employment All the poli
cies of the federal, government
must be geared to the objective oi
sustained full production and full
employment. '
Agriculture Food prices mutl
be held to present levels, sub
sidies continued; government will
make good on price-support com
mitments; farmers can be eonfi
dent of another good year or two.
Social security Congress should,
extend benefits to those not cov
cred; provide prepaid medical '
core, With sickness and disability,
benefits,
19 Million Budgeted
For Bonneville
WASHINGTON. Jan. 21 M)
For further utilization of the na
tion's power facilities, President
Truman recommends the appro
priation of about $80,000,000 to
three big power agencies.
His budget message, sent to
congress today, allocates $19,701,-
000 for the Bonneville power ad
ministration and $23,323,000 for
southwestern power administra
tion.
Passage of the law requiring all
government corporations to submit
a budget came too late to permit
the inclusion of detailed estimates
for the Tennessee valley authority
but its expenditures for 1947 are
estimated at $27,000,000 and an
appropriation of $36,572,000 is
recommeaded.
Bonneville's revenues from the
two Columbia river plants totaled
m,vu.i,zuz lor 1U44.1, dropped to
an estimated $18,197,000 for the
current fiscal year and arc ex
pected to be about $16,148,000 for
1947, reflecting, the president says.
"the adjustment of loads from a
war to a peacetime basis."
Holding Food Subsidies Will
Help Curb Inflation-Truman
WASHINGTON. Jan. 21 OP)
President Truman called on con
gress today to retain food subsi
dies as one means of combating
inflation and a possible eight per
cent jump In the cost of living
index for food.
This request, made in the chief
executive's state of the union and
budget message, represents an
about-face by the administration
on subsidies. It had planned to
end most of them by their June
30 expiration date.
"To Avoid Inflation"
Mr. Truman said that unless
the subsidies are continued "it
would become extremely difficult
for us to control the forces of
inflation."
More specifically, he estimated
that withdrawal of the subsidies
would force increases of from
three to five cents a pound in
average prices of meat; at least
12 cents a pound for butter, in
addition to a five cent increase
allowed last fall; one to two cents
a quart for milk; and one cent a
loaf for bread.
The president also asked the
lawmakers for appropriations
which, together with funds al
ready available, would permit the
agriculture department to spend
about 34AMCV00Q lor 'H'.".1
farm programs, research and for
foreign relief operations during
ine iiscai year beginning July 1
In requesting extension of the
subsidy program, Mr. Truman said
food prices since V-J day have
failed to follow the pattern the
government had expected,
baying thev have been expect.
ed to drop three to five per cent
by this time, Mr. Truman added
that this anticipated decline,
would have permitted the gradual
elimination of food subsidies by
June 30 without raising over-all
iood costs.
No Price Drop Expected
"As matters str.nd today," he
said, "food prices are pressing
hard agninst the ceiling. The ex
pected decline in food prices has
not occurred, nor is it likely to
occur for many months to come.
This brings me to the conclusion
tnat food subsidies must be con
tinucd beyond June 30."
Mr. Truman expressed confid
ence tnat agriculture faces anoth
cr year or two of strong demand
and good prices for its output, He
suggested, however, that this is
the time for congress to review
needs of postwar agriculture and
to make any changes in farm
legislation deemed necessary for
iiiiirf Tarm nQaraaHnh
f"w- """.E""rlW
Federal Power
Policy Reslafed
WASHINGTON, Jan. 21 W-4
"We shall continue our plans for
Ua Javnlnnmn,, 41.. ti ..-..-I
valley, the Arkansas valley, and
the central valley of California,''
President Truman told congresi
today.
Tn his message to congress, the
chief executive stated that the
rivers of America offer a great
opportunity In the management ot
national wealth.
"By a wlso use of federal funds,
most of which will be repaid into
the treasury, the scourge of floods
nnd rirntlUht rati VtA fitrhnrl wain.
can be brought to arid lands', navi
gation can be extended, and cheap
power can De orougnt alike to the
farms and to the industries of our
lands," he stated.
Citing the Columbia river as an
eynmnli th nrMlmt enia 41..,
development of that basin's water
resources is creating a rich agri
cultural area as large as the state
ui ueiawore.
"At the same time, he added,
'we urn nrnrinnlniv nnum. af rit-nA
Coulee and nt RnnnullTa whlni,
played a mighty part in winning
tho war and which will be found
a great peacetime industry in the
norinwesi. xne Tennessee val
ley authority will resume its
peacetime program of promoting
full use of the resources of the
valley."
, i
House Committee
Approves USES Bill
WASHINGTON, Jan. 21 OP)
The house labor committee ap
proved legislation today in Una
with President Truman's recom
mendation that the United States
employment service remain un
der federal control until July 1,
1947. The vote to send the meas
ure to the house floor was 13 to 3.
Weather
V. S. Weather Bureau Forecast!
Eugene and vicinity: Cloudy with
occasional rain Monday, Monday
night, and Tuesday. Little tem
perature change. Oregon: Same,
with moderate southerly winds off
coast.
Local statistics: Highest tem
perature Sunday, 52 degrees; low.
Monday morning, 40 degrees; 24
hour precipitation ending 10:38
a.m. Monday, trace; total rainfall
for month, 3.18 inches; normal
rainfall for month, 5.42 inches; to
tal rainfall since Sept. 1, 25.14
inches; stage of Willamette river
at 7:30 a.m. Monday, 0.0 feet; wind
direction and velocity at 11:30
a.m. Monday, south southwest, 12;
prevailing wind direction and av
erago velocity Sunday, south, 8.
Sunrise and Sunset (PST)t
Tuesday, 7:40 a.m. and 5:10 p.m.;
Wednesday, 7:40 a.m. and 5;lt
p.m.
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