Medford mail tribune., January 09, 1945, Image 1

MB
m
Weather
ForMittt Cloudy tonlfht and
Wcdneiday. Light rain tonight
and occasionally Wednesday.
Cooler Wednesday afternoon.
Temp.
Highest yesterday , 50
Lowest this morning 44
' Thirty-ninth Year
f Budget Cuts Spending Rate
But Holds No Tax Cut Hope
While Europe In War's Grip
a Washington, Jan. 9. (U.R) President Roosevelt presented to
congress today a flexible 1946 fiscal year budget calling for re
duction of expenditures to $83,760,000,000 and estimating cumu
lative war authorizations at $450,000,000,000 for six years.
The 1946 expenditures would be approximately $17,802,000,000
less than those in the current 1945 fiscal year.
The six-year authorizations figure covers the period from July
1, 1940. to June 30, 1946.
NO TAX CUT WHILE WAR CONTINUES
' Mr. Roosevelt told congress that there was no justification for
tax reduction, so long as we are engaged in. major war. And he
framed this budget to meet the eventuality of war in Europe con
, turning for another 18 months. -
L The budget message contained a preview of Mr. Roosevelt's
' post-war demobilization and employment plans. They evidently
contemplate reduction of annual government expenditures to $50,
000,000,000 through the demobilization period and, ultimately, to
$25,000,000,000, where they would level off.
He said that as demobilization accelerates after the war "there
may be 60,000,000,000 men and women to be employed."
"Manifestly," Mr. Roosevelt said, "full employment in peace
time can be assured only when the reduction in war demand is ap-
iroximately offset by additional peacetime demand from the mil
ions of consumers, businesses, farmers, and by federal, state and
local governments. ......
- . BUSINESS MUST INCREASE JOBS
. "That means that consumers' expenditures and business invest
ments must increase by about 50 per cent, measured in constant
prices, above the level of the year 1939 if full employment is to
be provided by private enterprise."
' To that end he proposed postwar overhaul of the wartime tax
structure to stimulate consumers' demand and promote business
investment.
Spending, revenue and deficit estimates were all down in this
budget compared with those for the current fiscal year which will
end on June 30. The 1948 fiscal year, budgeted today, will run
from July 1, 1945, to June 30, 1946.
PUBLIC DEBT TO CONTINUE UPWARD
' The public debt is going up to an estimated $252,000,000,000
on June 30 and to $292,000,000,000 on June 30, 1946. Mr. Roose
A velt will ask congress to raise the statutory debt limit, now $260,
7 000,000,000.
He estimated interest on the public debt alone would cost
$4,500,000,000 in the fiscal year 1946. His calculations on war ex
penditures for the next fiscal year ranged from less than $60,000,
000,000 to more than $80,000,000,000 depending on when or
whether Germany is licked in the period covered. He arbitrarily
Sroposed $70,000,000,000 as a tentative estimate of war spending,
if this amount, $39,000,000,000 would be spent by the army; $22;
000,000,000 by the navy and the rest by other government agencies.
This budget would reduce over-all 1948 expenditures by about
$17,802,000,000 from the $101,562,000,000 being spent in the cur
rent fiscal year. These figures include outlays by government cor
porations as well as the treasury. The 1946 net deficit would be
down approximately $12,000,000,000 from this year's expected
$53,182,000,000.
. Mr. Roosevelt estimated net treasury revenue In the 1948 fiscal
?ear at $41,254,000,000 compared with the 1945 estimate of $45,
29,000,000. But he reported that he will be able in the next fiscal
year to pay almost exactly half of all government and war costs
from current income a goal long sought. It will be necessary to
borrow only about $35,000,000,000 in public war loans. Federal
trust funds will invest an additional $5,000,000,000 in government
securities, bringing loan proceeds approximately level with tax
revenue.
1948 TREASURY OPERATIONS OUTLINED
Here In round numbers are comparative figures on the treas
ury's operations as budgeted for 1946, excluding net expenditures
of government corporations and credit agencies which are included
in overall expenditure iigures:
1946 (est.)
Net receipts ...
Total expendi
tures .....
..$41,254,000,000
82,530,000,000
41,275,000,000
These estimates will be materially cnangea u uermany snouia
collapse within the next 12 months, a distinct possibility although
the budget message avoids any predictions. Budget Director Harold
D. Smith told questioners that a German collapse as late as the mid
dle of the next fiscal year approximately one year from this date
might bring war expenditures down below $60,000,000,000.
CONTINUING LEND LEASE ESTIMATED
War cost estimates cover continuing lend-lease. Mr. Roosevelt
estimated that about one-sixth of our current war outlays are for
lend-lease, relief and rehabilitation. Lend-lease will be liquidated
with the end of the war, he continued, but he warned of heavy
postwar relief burdens in the "liberated areas."
. He said $1,350,000,000 already had been appropriated for the
United Nations relief and rehabilitation administration. And, he
added, if the sum proves inadequate "we must take additional meas
ures, in cooperation with the other United Nations, to make sure
that the peoples of the liberated countries have essential relief
from the devastation of war."
AFTERMATH-OF-WAR CHARGES INCREASING
Mr. Roosevelt said expenditures for war veterans, interest on
the public debt and tax refunds were increasing from $1,600,000,
000 in 1939 to $7,200,000,000 in the current fiscal year and prob
ably would aggregate $9,800,000,000 in the 1948 fiscal year a
sum, he noted, larger than the whole federal budget in 1939. These
are . fixed, . inescapable charges for the most part, although the
$1,000,000,000 earmarked as consisting of repayments to waee and
salary earners of withholdings in excess of actual tax liabilities is
a large and surprising instance of miscalculation. War veterans
will cost an estimated $2,623,000,000 in the next fiscal year. The
$4,500,000,000 interest charge for the public debt represents an
Increase of S750.000 000 over the current fiscal year.
AGRICULTURE SPUR MUST. BE CONTINUED
Mr. Roosevelt recommended aDorooriation of $512,000,000 to
assure continued hish agricultural production.
He proposed that the borrowine mithorftv of the farm security
administration be increased from S67.000.000 to S125.000.000 for
rural rehabilitation and from $15,000,000 to $50,000,000 for a ten-ant-nurchase
program. This recommendation was in anticipation of
needs of returning was veterans.
Mr. Roosevelt asked congress to increase the borrowing author
ity of the rural electrification administration from $25,000,000 to
$150,000,000 to permit extension of electricity "to at least part of
the 6.000.000 rural families now without such service." He said he
shortly would recommend appropriations for a program of crop
insurance. . . ,
He described the foregoing as a wartime agricultural budget
and said we must in the future develop a program to eliminate
malnutrition and rural poverty. He reminded congress that the
government Is committed to sunnort agricultural prices to farmers
"at a fair level" for two years after the war.
SOCIAL SECURITY AND EDUCATION EXTENSION URGED
"I hope." Mr. Roosevelt said, "that congress will give early con
sideration to extension and Improvements In our social security
system and will re-examine the financial basis of the program"
an invitation to congress to nermit pavroll taxes to Increase to the
extent originally contemplated in establishing a social security
fund.
The message recommended basic reorganization of the office
of education in the interior department to make it more useful to
the states in develoDing adequate educational programs.
In addition to the recommended appropriation of $279,000,000
for public works, Mr. Roosevelt recommended appropriation! for
planning of public works projects already authorize'
Medford
United Pi
1945 (est.)
$45,729,000,000
1944 (actual)
$44,148,000,000
98,912,000,000
93,743,000,000
49,594,000,000
S3,1B2,UUU,UUU
Full Lwtd Wire
MEDFORD,
LEGISLATORS EYE
SNELL'S REQUEST
FOR LIQUOR PROBE
Action Believed in Offing on
Wish for Thorough Audit
To Refute Innuendos.
Salem, Ore., Jan." 9 (U.R)
Oregon's 1945 legislature today
rolled up its sleeves and settled
down to business with action be
lieved in the offing on Gov. Earl
Snell's urgent request for a full
dress Investigation of the State
Liquor Control commission.
Organization of the two
houses and preliminaries were
completed at the initial meeting
yesterday, climaxed by the gov
ernor's message to a joint ses
sion. Innuendos Cited
In a last minute addition to
his speech, Snell said he wanted
a "thorough, sweeping and com
plete audit and investigation"
into the Oregon liquor control
situation to dispel "certain
statements, innuendos, and ac
cusations" that have arisen in
connection with the purchase of
liquor stocks by the states of
Oregon and Washington.
Initial housekeeping chores
were completed in the house, as
it voted to give itself the copies
of the Oregon laws that are fur
nished to each member, to fur
nish legal date to committees
and to obtain needed equipment.
The first house bill Intro
duced that to pay for the ex
penses "of the 1945 session was
passed to its second reading,
and in a move just prior to ad
journment, Rep. Vernon D. Bull,
(D. Xa Grande) Introduced
house . joint resolution No. I,
which would call for a constitu
tional amendment to change the
legal voting age in Oregon to 18
years.
. First Senate Bill
First senate bill introduced
was one that would repeal the
community property law in the
state, while other bills were in
preparation to substitute legisla
tion for some of its provisions.
Recent supreme court action
invalidated the income tax re
turn use of the law by married
couples. .
Both houses adjourned short
ly after completion of the gov
ernor's speech. ,
COURT RULES OUT
BARBERPRICE ACT
Salem, Ore., Jan.- 9 (U.R)
The Oregon supreme court to
day declared unconstitutional
the law permitting a majority of
barbers to fix minimum prices
for a county.
The act was passed by the
1943 legislature and was ap
pealed by Earl La Forge, a bar
ber of Multnomah county.
La Forge contended the act
violated the due process clause
of the 14th amendment and un
lawfully delegated legislative
authority. The high court cited
there were conflicting opinions
on the constitutionality of sim
ilar legislation based on the due
process of law contention, but
that the delegation of authority
clearly made the law invalid.
Jap Shipping Losses Heavy
14th Air Force Report Shows
Chungking, Jan.' 9 U.R ,
Planes of the U. S. 14th en
force destroyed or damaged a
total of 1,749,000 tons of Japan
ese shipping between July 4,
1942, and January 1, 1945, a
headquarters communique re
ported today.
The communique listed 374
vessels with a tonnage of 843,
289 as destroyed. Not included
In the tonnage figures for the
entire period were 32 Japanese
naval craft destroyed, 573 prob
ably and 9,178 damaged.
Pilots of Maj. Gen. Claire
Chennault's command also de
stroyed 1,763 enemy planes in
tha air and on the ground and
OREGON, TUESDAY, JANUARY 9, 1945
SEMI U.S. ..TASK FE
MASSES . HIPS .-OH :LUZ0H
LANDING FEINTS
BY YANKS HAVE
JAPSBEFUDDLEO
Carrier Planes, Superforts
Rake Enemy Installa
tions on 1500-Mile Front.
Pearl Harbor, Jan. 9 (U.R)
Tokyo broadcasts today report
ed a second great American
task force has arrived in "the
Lingayen gulf combat zone" and
was maneuvering for a landing,
while hundreds of American
aircraft both carrier-based and
giant B-29 Superforts raked
Japanese installations on a 1,-500-mile
arc from Formosa to
Tokyo. ,
The Japanese broadcasts esti
mated the second American
striking force at 150 ships, ap
parently mostly transports.
Japs Confused
The Jittery Japanese broad
casts gave a confused picture of
the situation on the coasts of
Luzon with fleets of American
warships and transports steam
ing back and forth, shelling the
shore and apparently feinting at
landings at a number of points.
The first invasion armada, ac
cording to enemy reports, shift
ed operations to the Manila area
today. Later Tokyo broadcasts
said shelling of the coast by the
first force was slackening but
that' the huge new task had
appeared in Lingayen gulf.
The Japanese accounts said
the Americans were only await
ing the zero hour before com
mencing landing operations.
There was no comment from
American official sources on the
Japanese reports of fleets off
Luzon.
Air Blows Told
However, official announce
ment was made of fresh aerial
blows ' ranging over Japanese
strong points in a wide Pacific
arc.
Twenty-first bomber com
mand at Guam announced that
a "substantial" force of Super
forts hit Tokyo, striking at in
dustrial targets in their second
major assault of the year on the
main jap island of Honshu.
At about the same time 20th
bomber command Suparforts at
tacked military installations at
Formosa and carrier aircraft
from Admiral J. S. McCain's
Third fleet fast carrier force
smashed at Japanese shipping
and installations in and around
Formosa, Ishigaki, Miyako and
Okinawa.
ASK POSTWAR FUND
Sacramento, Cal., Jan. 9 (U.R)
A bill appropriating $40,000,000
in state funds for relief of ex
pected postwar unemployment
was introduced in the state legis
lature today in line with a rec
ommendation by Gov, Earl War
ren. were credited with probably de
stroying 700 more. During this
period, the 14th lost 121 planes
in air combat, making the ratio
9.7 to 1 in favor of the Ameri
cans. From June to December of
1944. the communique said,
bombing and strafing runs by
Chennaults airmen accounted
for 30,000 casualties among Jap
anese troops.
Other damage inflicted on the
enemy was listed as follows:
Locomotives Destroyed, 424;
damaged, 400.
Railroad cars Destroyed, 385;
damaged, 1,200.
Truck Destroyed, 31,115;
damaged, 4,827.
T A TT ' ' Inrni
V-4fV-4 . o, MM
EtIBUNE
r- - ! ttetttd Pzm Full Ltutd Wr
79th Congress Starts War
I o B & - ft cl J (-
h Aj r w o
ng ,-B . . , .,,
Tha infant 79th Congress iodav received tha Muesrlni for financial !n!.!.tin hr, PtM
Roosevelt presented a 1348 fiscal rear budget calling for reduction of expenditures to $83,760,000,
000. Tha new congress is shown above ai the Rev. Jamei Share Montgomery delivers tha opening
Marshal Von Rimdstedt's Gle May,
Shorten War Declares Lt. Gen. Bradley
B? Walter Cronklte
United Press War Correspondent
- Twelfth Army Group Head
quarters, Jan. 9 (U,R Lt Gen.
Omar N. Bradley said today Ger
man losses in the nazt counter
offensive have been so serious
they are likely to affect mater
ially, the course of the war on
the western front.
Bradley, in his first public
statement since the launching of
Marshal Karl Von Rundstedt's
counteroffensive, said that the
number of German prisoners
taken since December 18 by the
American armies alone is great
er than the number of American
troops reported captured or
23 KILLED WHEN
CIA CLIPPER
FALLS INTO SEA
Miami, Fla., Jan. 9. ffl.R)
Fan American Airways reported
today that a death toll of 23 was
indicated in the crash of the 10-year-old
China Clipper, which
plunged into the sea at Port of
Spain, Trinidad, last night while
enroute from Miami to Africa.
Navy divers sought 15 of the
passengers and crew members
believed trapped in the sunken
wreckage of the huge flying
boat. Seven were known to have
been saved and eight bodies re
covered of the 30 persons aboard.
W, O, Snyder, manager of
Pan American here, said latest
reports "indicate that 23 of 30
persons aboard the plane were
lost."
Details of the crash, believed
to have occured during a regularly-scheduled
landing at the Pan
American base, were slow In
reaching here.
RUSSIANSADD TO
BUDAPEST HOLDING
London, Jan. 9 (U.R) A
Moscow communique said to
night that the Red army had
captured more than 350 addi
tional blocks in Budapest, in
cluding a hippodrome used by
the Germans as an airdrome, a
city park, a tank factory and
other plants.
- ' 1 - - ... ... i
missing in action.
Not Near Collapse '
Bradley said the Germans are
not on the verge of collapse and
that "there is considerable fight
ing ahead."
The allied command, he said,
had appreciated the possibility
of a German attack through the
Ardenens but admitted frankly
that "the actual tuning of the
attack and its strength were
somewhat of a surprise,"
Bradley said that the area
chosen by Rundstedt for his of
fensive involved no risk to the
allied strategic objectives or to
the supply lines running up to
our fronts.
The terrain, .he said, was per
fectly suited for regrouping of
allied forces which was carried
out by Lt. Gen. Courtney
Hodges, commander of the
American 1st army, and Marshal
Sir Bernard Montgomery in the
north and by Lt. Gen. George
S. Patton, of the 3rd army in
the south. i
Thus, said Bradley, Rundstedt
was contained "before he could
do much damage,"
Bradley indicated that Rund
stedt's gamble might actually
work out to shorten the war in
stead of to lengthen it.
"German losses in this offen
sive," he noted, "have been tre-
FRUIT GIFT B
SET NEW RECORD
December shipments of pears
out of Medford were the largest
in history, according to a state
ment made by F, P, Francks,
local express agent. Business in
creased by 198,672 bills of lading
over the 1943 total for the same
period, building a new record of
approximately 440,000 bills of
lading by local packers in De
cember, to alt points in the
United States. It was pointed out
that one bill of lading may cover
one or several packages.
Figures given by Francks In
cluded all Christmas fruit ship
ments such as mixed fruit bas
kets and apples but a iarger per
centage of the shipments were
classified as pears,
Actress Paralyzed
By Accident Shot
Hollywood, Jan, 9 (U.R)
Screen Actress Susan Peters to
day was reported temporarily
paralyzed from the waist down
as the result of a New Year's
hunting accident,
NO. 245.
- Peace Job
Acmm Tttepheto)
mendous. Our artillery and air
forces nave been able to punish
him much more severely in the
open than had been possible had
he remained in his fortifications.
-"His dead and wounded must
be many more times the number
we have suffered. Events may
prove that the losses in men and
material and the loss in morale
when the salient is eventually
reduced will materially affect
the German ability to resist on
the western front."
BIDDLE DENIES
DEAL WITH BIOFF
Washington, Jan. 9 (UK
Attorney General Francis Bid
die said today that no deal was
Involved in the recent release
from prison of George E.
Browne, former president of the
International Alliance of Theatri
cal Stage Employes (AFL), and
his personal assistant, William
Bioff, who were convicted of
violating the anti-racketeering
act.
Blddle's denial followed a
statement inserted In the con
gressional record on January 6
by Rep. Lawrence H. Smith, R.,
Wis., that a reduction In the sen
tences of Browne and Bioff was
a result of a deal between Blddle
and the two men. Smith said he
was exploring the possibilities
of impeachment proceed ings
against Blddle,
Judy Garland Tells
Plans For Wedding
Hollywood, Jan. 9 U.R) Judy
Garland, actress and radio and
screen singer, disclosed today
that she and Director Ben Vin
cent Minnelll would be married
sometime "in the early fall.'
It will be the second marriage
for Miss Garland, now 21. Her
first marriage one that she said
was "going to stick" was to
Composer Dave Rose. It ended
when she filed suit for divorce
last May 5, charging Rose caus
ed her great humiliation.
HAN MA COKDlfibs "FAiR"
REPORT FROM HOSPITAL
Today's report on the condi
tion of Judge Herbert K. Hanna,
a patient in St. Vincent's hospi
tal, Portland, was the same as
yesterday, the United Press
bulletin reading "fair. The.
judge was taken north by am
bulance two weeks ago and is
under the care of a Portland
specialist.
BE
RETREATING FROM
ARDENNES BULGE
Front Dispatches Report
Signs of Pdi-out Under
Cover of Delaying Action.
Paris, Jan. 9. (U.R) Ameri
can and German tanks were
locked in a roaring battle today
on the approaches to Lc Roche,
keystone base of the Ardennes
salient, and front dispatches re
ported signs that the Germans
might be pulling out of the en
tire bulge under cover of a de
laying action,
A snowstorm enveloped tee
mighty clash of armor around
Samree, three miles northeast of
La Roche on the highway to St
Vith, limiting the First army
march southward to gains aver
aging a third of a mile.
Oppoattian Light
Allied armor and Infantry
were reported encountering "re
markably light" artillery and
mortar fire, indicating a German
general withdrawal, from tha
north side of the bulge toward
ridges guarding the one remain
ing highway out, which already
was under the fire of U. S. troops
less than four miles away.
In northeast France the Ger
mans, checked short of a break
through at every point they have
hit in the last nine days, today
struck anew at four widely sep
arated points on the Sixth army"
group front.
A front dispatch said they ap
parently hoped to feel out weak
spot, but failed. It reported that
the Germans were attacking in.
the R lulling area east of Sarre
guemir.es, north of Lemberg oa
tr . west side of the Bltche bulge.
north of the Haguenatt forest in
the vicinity of Obserroeden, and
south of Strasbourg along the
Rhine-Rhone canal.
Mew Line Seen
' "There are indications that tha
Germans are beginning to move
cut of the Ardennes bulge slow
ly tsy fighting delaying action,
and that they may take up posi
tions along a ridge south of Houf
faliie as soon as they have clear
ed their armored units from the
bulge," a dispatch' from Lt. Geo,
Courtney H. Hodges First army
headquarters said.
Lt. Col. Omaf N. Bradley, com
mander of the 12th army group,
warned, however, that the Ger
mans are not on the verge of
collapse, although their losses in
the Ardennes offensive have
been so heavy they are likely
to affect the course of the war
in the west.
While Hodges armor battled
the German tanks three miles
northeast of La Roche, other
First army forces were closing
on the key town for a frontal as
sault, Cieiie, a hamlet one mile
north of La Roche, fell to a U. S.
column spearing straight for the
town anchoring a broad section
of the German defenses.
Use Captured Tanks
Several Sherman tanks which
the Germans had captured some
time earlier were dug in as pill
boxes defending Samree, while
10 nazt tanks were doing similar
service and others were circulat
ing within tha town.
Two columns of the Second
armored division moved into po
sition for the tank battle last
night. Clearing weather earlier
today got the straggle off to
brisk start. A blinding snow
storm followed, robbing the
Americans of air support. At
midafterndon the skies showed
some sign of clearing again.
At captured Provedreux,
where Hodges' forces were only
four miles from the Houffalize
St. Vith highway, the doughboy
stood fast without even under
taking an advance In the vile
weather.
A column of the British Sec
ond army striking southeast into
the crumbling nose of the salient
captured Cheoux, four miles
south of Hotton.
SIDE GLANCES
TRIBUNE REPORTERS '
Alden Hibbard heme from the
sea and startling relatives and
friends with a flowing beard,
Carlos Morris furnishing
hamburger for a friend and then
assuring him lt was terrible,
Jerry Jerome still facing 1845
with a wide grin.
Jl "wf ttrt" Itt th ribr halt
being pursued by the Draft board
stall ana sUDsequemiy cnasea
out the window.
Washington, Jan, 9 SUD
Ugo Carusi, 42, who has served
as executive assistant to five at
torneys genera! since 1930, today
was sworn in as commissioner f
immigration and caturliiatioa.