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About Capital journal. (Salem, Or.) 1919-1980 | View Entire Issue (Jan. 21, 1946)
Nations Vast Steel Industry Shut Down by Strike of 750,000 Capital Truman's Budget Message Cuis Journal Strike Idle in Country Total Over 1,600,000 Steel Production Cut to Trickle; Seizure of Meat Packing Plants Looms Government Spending in Half And Urges General Wage Increase Opposes Further Tax Reduction; Asks Extension Office Control; Warns Against Inflation and Calls For Collective Bargaining of Wage Disputes 58th Year, No. 18 Entered ai lecond eltu matter tt Sftiem. Oreion Salem, Oregon, Monday, January 21, 1946 it Price Five Cents Washington, Jan. 21 (U.R) President Truman sent to congress today a message proposing to cut government spending almost in half in the 1947 fiscal year and urging general industrial wage increases. He opposed further tax reduction at this session. He asked for emergency extension of price control authority and urged that it be expanded to put a ceiling on sales prices of old and new houses. The president said the armed services even, a year from now must total 2,000,000 men. The selective service law must.be continued beyond its May 16 expiration date if voluntary enlist ments are inadequate, Mr. Truman said. He asked for a decision on selective service extension in March. The president deplored work stoppages and called for collective bargaining adjustment of disputes. He said long continuation of HQ Million 'For Irriqation Washington, Jan. 21 VP) A $139,000,000 reclamation bureau construction program for the fiscal year beginning July 1 is proposed in the president's bud get message to congress today. The total amount asked for the bureau is $163,554,055, funds appropriated for the bu reau for the 1946 fiscal year to taled only $116,816,150. The fiscal 1947 program con templates construction work on more than a score of projects the greatest number of which were closed down during the war emergency. Major items in the program were listed as follows: Columbia river basin $30, 000,000. Central Valley of California 825,000,000. Colorado-Big Thompson proj-. ect (Colorado) $15,000,000. Davis Dam (Arizona) $15, 000.000. Missouri River Basin $23, 783,600. The reclamation bureau bud get includes $11,000,000 for gen eral investigations a type of work for which congress ap propriated but $3,250,000 dur ing the present fiscal year. Besides the five major pro jects, construction items listed in the new budget (amounts ap propriated during the 1946 fis cal year are shown in brackets.' included: Klamath project, Ore.-Calif., $500,000 ($1,000,000); Yakima river project, Wash., Roza divis ion, $1,440,600 ($1,650,000). $80 Million For Power Agencies Washington, Jan. 21 (IP) 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 administration and $23, 323,000 for Southwestern Power administration. Passage on the law requiring all government corporations to submit a budget came too late to permit the inclusion of de tailed estimates for the Tennes see valley authority but its ex penditures for 1947 are estimat ed at $27,000,000 and an appro priation of $36,572,000 is recom mended. Bonnville's revenues from the two Columbia river plants to taled $22,903,282 for 1945, dropped to an estimated $18, 197,000 for the current fiscal year and are expected to be about $16,148,000 for 1947, re flecting, the president says, "the adjustment of loads from a war to a peacetime basis." The new funds are intended to build 600 miles of transmis sion lines and 14 substations, giving Bonneville 3,600 miles of lines and 82 sub-stations 25 Tons Clothing Collected by Scouts Approximately 25 tons of serviceable clothing and shoes were collected in the city-wide drive over the week-end with 600 boxes and bundles wrapped, packed and labeled clothing shipped. The house to house pick-up Sunday was estimated at three times that made at the schools and fire stations Fri day. An additional pickup was made Monday at some of the outlying school buildings and churches. Between 150 and 200 persons were engaged in the clothing drive Sunday, there being 30 trucks and drivers on duty each with a crew of four Boy Scouts with a large group of men at the receiving deDOt to sort and .'upack the contributions as they were unloaded from the trucks. major strikes would heavily check the reconversion program. But he gave no plans to cope with labor problems other than collective bargaining, fact-finding boards and a general upward wage trend. Full employment and in creased production, Mr. Tru man said, are the only safe guards against the disaster of inflation and consequent de pression. He unqualifiedly en dorsed the senate version of his full employment bill and asked again for enactment. Warns of Depression The president warned that se rious depression in the United States could disrupt world econ omy. The communication to con gress was a combination budget and annual message on the state of the nation. It contained up ward of 30,000 words. It was read to house and senate by clerks. The budget proposals were for the fiscal year 1947 beginning July 1 this year and ending June 30, 1947. The legislative proposals were for. immediate attention. The president estimated fis cal 1947 expenditures at $35, 860.000,000 compared with $67, 229.000,000 in the current fiscal year and a wartime top of $100, 000 000,000. Receipts in fiscal 1947 will be $31,513,000,000 compared with $38,609,000,000. The 1947 deficit of $4,347,000, 000 will be covered by drawing on treasury reserves instead of by borrowing. The current year's deficit was estimated at $28,620,000,000. Reduction in Debt Mr. Truman said that during the next fiscal year he would reduce the national debt from $275,000,000,000 as of June 30, 1946, to $271,000,000,000, also by drawing on treasury reserves. That would be the first down in the national debt over a 12 month period since the fiscal year 1930. Treasury reserves will be reduced in the foregoing process f r o m approximately $26,000,000,000 to $3,200,000, 000. In discussing work stoppages, Mr. Truman said that disputes must be settled by collective bargaining and with government assistance, but not by govern ment compulsion. Business a Public Trust "Private capital and private management," he continued, "are entitled to adequate re ward for efficiency, but business must recognize that its reward results from the employment of the resources of the nation. Bus iness is a public trust and must adhere to national standards in the conduct of its affairs. These standards include as a minimum the establishment of fair wages and fair employment practices. "Labor also has its own new peacetime responsibilities. Under our collective bargain ing system, which must become progressively more secure, la bor attains increasing political as well as economic power, and this, as with all power, means increased responsibility." The message outlined elabor ate plans for small business and for action to break monopolies. (Concluded on Page 11 Column 1) French Reds Seek to Elect Successor to De Gaulle Paris, Jan. 21 MP) The communist party launched a drive today to name a communist as the successor to Gen. Charles de Gaulle, who resigned the provisional presidency of France last night following a cabinet crisis. De Gaulle stepped down from the presidency with an an nouncement that he considered he had completed the task of "leading the country toward lib eration, victory and sovereign ty." In a letter of resignation ad dressed to Felix Gouin, presi dent of the constituent assembly, he said: "If I agreed to remain at this government post after Nov. 13, 1945, it was to respond to the unanimity with which the nat ional constituent assembly ad dressed itself to me to take care of a necessary transition. To day that transition has been ef fected. Besides, France, after great trials, no longer is in an alarming situation . ." Snyder Stresses Growing Threat 01 Inflation Washington, Jan. 21 VP) Re conversion Director John W. Snyder declared today the threat of inflation must be met by price controls and rising pro duction to head off an "economic Pearl Harbor." Production for civilian use already is at an annual rate of $20,000,000,000 greater than four months ago, Snyder said in a year-end report to the pres ident and congress. But the time cannot be foretold now when industry will come abreast of the soaring public demand for goods, he added. Expect Price Control Snyder urged strongly that the price control act be extend ed beyond its scheduled mid year expiration date, saying: "It would be foolhardy not to recognize that the excess of de mand over supply throughout the economic system may con tinue far beyond June 30." Unemployment and inflation ary pressure may hit their peak simultaneously early this spring, Snyder said. However, jobless ness will be below former esti mates. It now is around 3,000, 000, compared with the 5,000, 000 or 6,000,000 government agencies had expected. Production Needed "The basic need at this par ticular time to meet both situa tions is more production," the reconversion 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." Labor strife delayed the start of some important production lines, he said, but high output of cars, refrigerators, washing machines and other durable goods "could not have been achieved by this time, in any case." 1946 Forecasts In 73 pages the report fore cast what 1946 should bring in these vital fields: Food Americans may eat more than in the record year 1944, when consumption was 11 percent above the pre-war aver age. 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 expand quickly enough to absorb in the near future the 4,500,000 veter ans to be freed in the next half year, along with newly dis charged government and war plant workers. Coal "Supply prospects are fair." Clothing shortages persist. Demand for cotton goods will top supply by 20 to 50 percent. Trade May double the 1939 total of $40,000,000,000 in sales, and thus far exceed the 1945 record. Automobiles The industry expected "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" in stead of the present method of supporting prices. More food will be available this year than last, but short ages will persist through the early months at least on butter, sugar, pork, canned fish and bet ter grades of beef and veal. Party leaders met in a special conference and were expected to call the assembly into session either later today or tomorrow. De Gaulle cancelled a radio talk to the nation that he had scheduled for tonight, and re portedly left Paris, presumably for seclusion in the country while he waited for the constit uent assembly to act on his res ignation. Although his secretary said the resignation was "irrevoc able," some political sources pre dicted De Gaulle might be pre vailed upon to form a new gov ernment or to reconsider his resignation. The latter sources said the announcement he would retire from public life had been "a political gaffe (blunder)." tin l p4 I isJw. 'Jw ' 8,1.- ,i...Jk. ,. .. .Ik., ......i x-.O .aitf , H Steel Plant Picketed Ahead of Schedule VP) Pickets of the United Steel workers (CIO) gather at the entrance to the Co lumbia Steel company's Pittsburg, Calif., plant as a strike gets under way some 48 hours ahead of the scheduled nationwide steel industry walkout. Some 2500 workers in the California plant are affected. Flood Control Projects Favored by President Washington, Jan. 21 VP) Appropriation of nearly a third of a billion dollars for flood control and rivers and harbors projects was recommended to congress today by President Truman. In his 1947 budget message, the engineers be given $zl2,7ZU,Uuu S Desert Fox Died By Poison Nuernberg, Jan. 21 U.R) Field Marshal Erwin Rommel, Ger many's "desert fox," drank poi son as an alternative to trial for plotting against Adolf Hitler's life, documents in allied hands disclosed today. Hitler personally ordered Field Marshal Wilhelm Keitel to arrest Rommel for complicity in the July 20, 1944, bomb plot against Hitler. Keitel, a defendant in the war crimes trial, sent two gererais to make the arrest after Hitler decided Rommel must commit suicide or face trial by the nazi's dreaded "people's court" as a bomb plotter, the document said. Hitler was "extremely reluc tant" to order Rommel's death, and he told associates, including former Reischmarshal Hermann Goering, that Rommel had died of "bleeding in the brain" as result of skull injuries suffered during an allied strafing, the documents state. Food Subsidies Still Favored Washington, Jan. 21 (IP) President Truman called on congress today to retain food subsidies as one means of com bating inflation and a possible 8 percent jump in the cost of living index for food. This request, made in the chief executive's state of the union and budget message, rep resents an about face by the ad ministration 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 subsidies have been costing the government about $1,750,000, 000 a year. Mr. Truman said that unless the subsidies are continued "it would become extremely dif ficult for us to control the forc es of inflation." More specifically, he estimat ed that withdrawal of the sub sidies would force increases of from three to five cents a pound in average prices of meat; at least 12 cents a pound for but ter, in addition to a five cent increase allowed last fall; one to two cents a quart for milk; one cent a loaf for bread, more than a cent a pound for sugar, and eight cents a pound for cheese, in addition to a sched uled increase of four cents on February 1. The president also asked the lawmakers for appropriations 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 foreign relief opera tions during the fiscal year be ginning July 1. Cobhs and Mitchell Election Washington, .Jan. 21 VP) The national labor relations board today ordered Cobbs and Mitch ell company, lumber firm at Valsetz, Ore., to hold a collec tive bargaining election by Feb ruary 15. The election was asked by the CIO International Woodworker of America. president asked that the armyj for rivers and harbors projects and $110,000,008 for flood con trol. The appropriations for the 1946 fiscal year were $191,- 489,600 and $118,299,600 respec tively. In addition, he proposed that $4,815,000 be alloted for plan ning river and harbor projects and $8,000,000 for flood con trol planning. The rivers and harbors mon ey, he said, will permit a start on the Florida barge canal, and construction on the Atlantic, Pacific and Gulf coasts and the Great Lakes. The planning funds will provide detailed specifications for the McNary dam on the Columbia river and a series of navigation dams on the Snake river in Oregon, Washington and Idaho. The program for the fiscal year beginning next July 1, he said, also provides for planning of additional flood control proj ects, including some multiple purpose features such as the reservoir projects in the central valley of California. In addition to the general flood control appropriations, an appropriation of $35,000,000 is recommended for continuation of construction in the Missis sippi valley, plus $500,000 for emergency expenditures on the river and its tributaries. For further flood control con struction on the Sacramento river in California $2,000,000 would be provided, and $1,505, 000 is recommended to complete installation of hydro-electrie power power plant at Fort Peck dam in Montana. Leftists Win In Rhineland Frankfurt, Jan. 21 (U.R) A final tally on Germany's first free elections since 1933 re vealed today that the left-wing social democratic party scored a thrce-to-two popular victory yesterday over the Tightest Christian democrats in the heav ily Catholic Rhineland. Early returns put the Chris tian democrats well out in front in the 17 Hessian countries where township councilman were being elected in communi ties with populations of 5,000 or less. ' The social democrats came back strongly in the late bal loting, however, and finished up with a popular vote of 146, 598 against 99,591 for their principal opponents. The com munists trailed badly in third place with 16,608 votes, al though they held a thrce-to-one margin over the extreme right wing liberal democrats who tal lied 5,662 votes. The final count showed that 83 percent of the electorate vot ed in the counties where ballot ing was scheduled. . The Weather (Released by the United States Weather Bureau) Forecast for Salem and vicin ity: Cloudy with occasional rain and light to moderate winds to night and Tuesday. No appreci able change in temperature. Lowest tonight 42. Max. yes terday 50. Min. today, 41. Mean temperature yesterday, 46. which was 6 above normal. Total 24 hour precipitation to 11:30 8.m. today, .17. Total precipitation for the month, 3.37. which Is .24 Inches below normal. Willam ette river height, 2.6. ft. JapW- Se . idC As Reparations Tokyo, Jan. 21 MVWar plants which equipped Japan's losing bid for conquest were seized and placed under guard today by General MacArthur, who indi cated many of the factories would go to allied nations as reparations. The allied command took ever 394 Jap aircraft plants, army and navy arsenals and war lab oratories. Among these were 265 aircraft and parts plants listed by the allied reparations com mission as "first priority mater ial for removal to other na tions. Permits Cancelled MacArthur ordered cancella tion of any previous permits to the designated installations for conversion to peacetime produc tion, unless the installations were "immediately and abso lutely essential to the civil eco nomy." Commanders given custody of the installations were told to consider the "probability that these plants will be taken as rep arations and consequently should ot be allowed to acquire im portance in the Japanese econ omy." The directive disclosed that In some instances the Japs had re moved machinery from plants and that equipment valued at millions of dollars had been al lowed to deteriorate. The Jap anese government was ordered to cease removals immediately and place guards around the buildings. Material Destroyed (The amount and extent of the indemnity Japan is to pay are to be established soon, H. D. Maxwell of Tacoma, deputy chief of the American repara tions commission, said on arriv ing at Hamilton Field, Calif., from Japan. Maxwell, returning with 10 other members of the commission, said Japan has surplus in industrial capacitj despite air raid damage and can pay "more than we expected"). As part of the allied program to restore Japan to peacetime pursuits, Sixth army troops, now consolidated with the 8th army, were estimated to have eliminated more than one-third of Japanese war materiel on sou thern Honshu, Kyushu and Shi koku in three months. Iran Premier Resigns Office Tehran, Jan. 21 (IP) Premier Ibrahim Hakimi resigned last night after asserting his efforts to negotiate with the Russians over Azerbaijan had failed. Hakimi's fall was foreshad owed last week when he told parliament that his foreign pol icy had failed. He said efforts to negotiate with the Russians were unavailing and that he proposed to present the case to the United Nations organization. Today Hakimi said he had told the Shah he had "succeed ed in placing Iran's case before the United Nations organization and I am now ready to step down. Many observers expressed the opinion that Mohammed Roza Pahlavi would ask Hakimi to form a new government. However, three other men have been mentioned as his pos sible successors. They are form er Premier Qavan Ahmad Sul taneh; AH Khan Mansur, gover nor of Kohrassan; and former Premier Pirnea. Martial Law in Greece To Curb Royalists Athens, Jan. 21 (U.R) The Greek government imposed rigid martial law in the southern Peloponnesus cities of Kalamata and Sparta today and dispatched motorized forces to subdue an uprising by the monarchist "X" organization that has cost 60 lives. Prime Minister Themistoclcs Sophoulis ordered establishment of courts martial with powers to carry out sentences immed iately. Arrest of the "X" leaders in the two cities was expected. The royalist forces have been, rampaiging since Saturday, when they killed 30 left-wing supporters in a cafe fight, then attacked the Kalamata police station and freed 30 of their own men who had been arrested. Former members of Eias, the military force of the left-wing EAM movement, were fighting beside the police against the royalists. Police and soldiers UNO Approves Atomic Energy Control Board London, Jan. 21 VP) Creation of a special commission to devise controls for atomic energy was approved by the political secur ity committee of the United Na tions' assembly today, after only 30 minute discussion. The action was taken after Senator Tom Connally (D., Tex.), of the American delega tion said the commission will 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 recommendations, he explained. Unanimous Action Forty-six votes were cast for the resolution approving crea tion of the commission, Chair man Dmitri Maniulsky of the Ukraine delegation said that the action was unanimous. How ever, the delegate from the Phil ippines, Thomas Gabili, abstain ed after he had protested against what he called an effort to "rail road" the resolution through the committee. Andrei Gromyko, soviet dele gate, Ernest Bcvin, British for eign secretary, and Connally urged the committee to act im mediately, and Bevin repeated ly arose to demand an approving vote. Assembly to Act Just before the vole Zygmunt Modziclewski of Poland said there must be "solemn and con crete assurances that atomic energy would never be used for destruction, but on the con trary would be used always for peaceful development of the world's economy and raising the standard of human lives." The meeting of the political and security committee was the first of a long series of com mittee sessions today as the UNO moved into a new phase of its organizational work follow ing six days of oratory. Marines to Be Kept in China Tientsin, Jan. 21 (IP) Amer ican 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 Chin ese, Rep. Bales (R. Mass.), a member of the house naval af fairs sub-committee, said here today. Bates is in Tientsin with a naval affairs sub-committee. "The marines may be kept here some time longer as a sta bilizing force while the good offices of the United States gov ernment is being used to recon cile. the two Chinese forces into peaceful settlement," he said. '"We are interested in a perm anent world peace. We are of the conviction that unless we lend a hand, another world con flagration may bo in the mak ing." The committee of which he is a part is interested, he said, in four main problems: (1) Dis posal of surplus naval material, (2) Inspection of navy installa tions in the Pacific, (3) demo bilization of the armed forces, and (4) general conditions in the Pacific areas captured or re taken from the Japanese. "Now that China is being freed of the Japanese," he said, "we want to lay the foundations of a new government in China. We don't want to interfere in Chinese affairs, only insofar as those internal affairs of China concern world peace." guarded the prison where many Elas men who fought in the 1944 civil war arc detained. At least one attack against the prizon by X men bearing tnmmyguns was rep ulscd. Troops guarded the courthouse against a possible royalist at tempt to destroy records show ing names of men who collab orated with the Germans. There was virtual civil war in the adjoining cities of Kala mata and Sparta. Royalists were reported in control of all Kala mata except an area surround ing the prison and police head quarters. A force of 2.000 royal ists armed with automatic weap oris was concentrated outside Kalamata, dispatches said. (Br th AuoclRtfd Pre.u) Production of steel back bone of America's' industry was cut to a trickle by a nation-wide strike of 750,000 steel workers today which CIO Presi dent '.Philip Murray declared would continue until the steel industry "accepts the decision of the president and the United States." Referring to President Tru man's proposal for an 18 ',4 cents hourly wage increase, which the steel workers' union accepted and the U.S. Sleel Corporation rejected, Murray told newsmen at a press conference In Pitts burgh: If reconversion has been hin dered and thousands of people have been thrown out of work. If disaster overtakes our nation ... it is because indus try has said 'no' to the president of the United Stales." No Government Action President Truman, at the same time, conferred with con gressional leaders on the strike situation and called in his steel fact-finding board, but White House Press Secretary Charles G. Ross said no immediate gov ernment action was contemplat ed. However, one high adminis tration official said he could not see how government seizure on strike-bound meat packing plants could be avoided and added he was recommending that step. Although concurrence in this view was expressed by some other White House advisers, who also could not be named, they added there was little likelihood of seizure of the steel Industry at least until the strike had been under way a few days. Another 30,000 joined the na tion's ranks of strike-idle when the CIO farm equipment work ers' union quit work in 10 In ternational Harvester company plants in a dispute over a 30 percent wage increase demand. The plants are in Chicago, Rok Island, East Mollne and Rock Falls, IlU Richmond, Ind.j and Auburn, N.Y. The steel and Harvester com pany strikes boosted the num ber idle in strikes across the nation to 1,622,000, highest since the mass work stoppages follow ing the first world war. The country's reconversion program was brought to a cris is by the greatest strike in the history of American labor. A large segment of industry. and millions of potential con sumers of everything from auto mobiles to razor blades, were bound to be affected. The civilian production ad ministration predicted steel starvation will be "closing one factory after another within two or three weeks. (Concluded on Page 9, Column 7) CIO Picketing Compulsory Homestead, Pa., Jan. 21 (IP) "We're going to stay out 'til we get that raise . . ." In those words a steel strike captain summed his view as we stood together in a raging snow storm early today outside the darkened homestead works of Carnegie-Illinois Steel corpora tion. A dozen men slowly trudged a long oval pattern in the snow, picketing the plant entrance. Some wore boots and hunting clothes as protection against the wet and cold. One by one they took turns toasting hands and feet at a flaming coal fire built In an empty oil drum, a "salamander.'. The strike captain, Barney Shields, was enthusiastic. "We have about a thousand men picketing I guess," he said. "We have about 8,000 members in all here, including about 800 women, and every one will get a postcard telling when and where to report for strike duty. "Each will picket one day a week. On that day he'll picket two hours, go off for two hours, then picket two hours more. "A man has got to have a good excuse, a very good one, not to report for picket work. If he fails to show up he gets fin ed $5. If he refuses to show up .he gets fined $10 and he won't be able to hold any union office for two years. I don't think we'll have any refusals or any failures." Small Craft Warnings Portland, Ore., Jan. 20 (U.R) The U.S. weather bureau today announced small craft warnings at the mouth of the Columbia on the Oregon coast south of Col umbia river to include Coos Bay, Ore., for fresh to occasion ally strong southerly winds. 1