7
Truman Message Calls
For Inflation Controls;
Offers. Reduced Budget
By United Press
The House and Senate today listened to one of the longest
presidential messages ever written.
In his combined state of the union and budget message, Pre
ident Truman called for reduction of the national debt and the
extension of many wartima economic controls to "fight inflation.
The president also repeated his appeal for congressional enact
ment of many important measures; including the creation of fact
finding boards, a full employment bill, a health insurance program,
universal military training, merger of the armed forces and many
others. The presidential message devoted much time to current
strikes and the problems of business, labor and industry re
converting to a peacetime economy. I
Mr. Truman said the present walkouts in major industries are
a cause of deep concern, and he warned that continuation of labor
management strife will seriously check the reconversion program.
In an appeal to Congress to enact legislation creating fact
finding boards, the president said industrial wage disputes must be
settled by collective bargaining with government assistance but
not by government compulsion.
Major points in Pre?:dent Truman's 32,000-word message to
congress:
DOMESTIC PROBLEMS
STRIKES Cause "deep concern;" again urged statutory fact
finding and cooling-off periods; most industries should make "sub
stantial wage increases;" "business is a public trust and must ad
here 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 un
less more men volunteer; 2,000. 000-man army necessary through
out this year; by June, nine out of 10 men who were in service on
V-E day will be out.
INFLATION Is "our chief worry;" price and rent control
must be renewed; price control must be extended to new and old
houses; food subsidies must he continued.
HOUSING "An immediate emergency and a major postwar
problem." Stop-gap actions have been taken; production is the
real answer. Wage and price adjustments will be made where
necessary. Price control needed on sales of old and new houses.
FULL EMPLOYMENT "All the policies of the federal gov
ernment must be geared to the objective of sustained full produc
tion and full employment."
AGRICULTURE Food prices must be held to present levels,
subsidies continued; government will make good on price-support
commitments; farmers can be confident of another good year or
two.
SOCIAL SECURITY Congress should extend benefits to
those not covered; provide prepaid medical care, with sickness and
disability benefits.
WORLD AFFAIRS
WORLD PEACE We want to "build and preserve a just
peace." This can be done only on a basis of justice for all nations.
UNITED NATIONS ORGANIZATION "Our ultimate se
curity . . . requires that we begin .now to develop UNO as the
representative of the world as one society ... a great voice to
speak constantly and responsibility in terms of world collaboration
and world well-being."
ATOMIC ENERGY Favors mutually-effective safeguards
through UNO that will permit fullest international control.
INTERNATIONAL FINANCE Lend-lease settlements on
basis that will not encumber world trade; 'continued foreign loans
to stimulate U. S. trade. U. S. in next 18 months will put S5.3
billion into Export-Import bank loans, British loan, and participa
tion in world bank and stabilization fund
THE PAST AND THE FUTURE
"We have won a great war we, the nations of plain people
who hate war. ... In the test, we found a strength of unity that . . .
crushed the power, of those who sought by force to deny our faith
in the dignity of man. I doubt if the tasks of the future-are more
difficult. But If they are, our strength and our knowledge and our
understanding will be equal to those task3."
FINANCIAL PICTURE
This, in brief, is the financial picture Mr.- Truman presented
for the 1947 fiscal year which begins July 1 this year:
SPENDING 535.860,000.000.
INCOME S31,513.000,000.
DEFICIT $4,347,000,000.
The president proposes to meet the deficit by dipping into the
treasury's cash balance its supply of ready cash already on hand.
He intends to use the same source for funds to retire nearly
$8,000,000,000 of the national debt in this next 18 months. This
would cut the national debt from more than $279,000,000,000 now
to $275,000,000,000 by June 30, 1946, and to $271,000,000,000 by
June 30, 1947.
It would cut the treasury's cash balance down from $28,000,
000,000 at the start of this calendar year to $3,200,000,000 by the
end of June, 1947.
Predicting his budget on existing and proposed legislation the
president particularly warned that there must be no further tax
reductions if the government's income is to reach the budgeted
amount. It was the first time that anticipated spending not al
ready authorized by Congress had been included in the budget
PLANE REPORTED
IN FLUNG FALL
Indio, Cal., Jan. 21 UR
An unidentified plane was re
ported to have crashed in
flames today in the rugged San
Bernardino mountains 12 miles
north of here, the sheriff's of
fice said.
Hennan Walker, Oklahoma
City, said he saw the plane go
into a flaming dive as ho was
driving along the highway. His
wife corroborated his report.
Officers said that a twin
engine plane was missine on a
flight from Burbank to Las
Vegas, Nev., via Palm Springs.
PROSECUTION RESTS
IN HOMMA'S HEARING
Manila. Jan. 21 (UP.) The
prosecution rested its case today
against Lt. Gen. Masaharu Horn
ma and the defense was granted
a week'6 recess to prepare its
case for the former Japanese
commander in the Philippines.
Trial will be resumed Jan. 28.
War Cost U. S. $354 Billion
Washington, Jan. 21 (U.R1 President Truman today placed
the direct eot of World War II to the United States at approxi
mately $354,000,000,000.
That is the sum of military expenditures, lend-leas, and re
lated direct war ccts from July 1, 1C40, when the war emergency
lgan. to June 30. 1947.
lt does not include billions of indirect war expenses pay
ments to veterans, interest on debt. etc. Such indirect cosU will
total about $11 billion In the coming fiscal year alone.
Authorizations for direct U. S. war expenditures went ai high
as $431 billior, but billions of this were not needed when the war
ended. Mr. Truman estimated actual sums paid out for direct
costs would total about $354 bil.ioa when most uf the bills axe
Liquidated la 1D4.7.
Junked Equipment
Will Be Returned
From Germany.Only
Washington. Jan. 21 (U.R)
The War department today an
nounced its policy on return
from overseas of junk metal
from scrapped airplanes, guns
and equipment.
The army won't bring back
iron scrap from anywhere but
Germany, except where it can be
used as ballast in ships. It
hasn't made up its mind about
whether it is worth while- to
bring Junk Iron back from
Japan.
Lead and tin bearing scrap
will be brought back to help
ease shortages in the United
States.
NEW AIR RECORD
New York. Jan. 21 (U.R) A
Pan American Airways Clipper,
a four motored Constellation,
held a record today after flying
3.425 miles from New York to
Lisbon in nine hours and 58
minutes. Previous record for a
commercial trip across the At
lantic was 12 hours, 57 minutes
established on a Washington to
Paris flight Dec. 4, 1945.
MEDFORD
Unit.d Pros
Fortieth Year
s
F
Mosccw Resolution Unani
mously Adopted By Politi
cal, Security Committee
London, Jan. 21 (U.R) The
UNO political and security
committee adopted unanimous
ly today the Moscow resolution
for establishment of an atomic
energy commission.
The resolution was adopted
46 to 0. The Philippine com
monwealth delegate was the
only member present who ab
stained from voting. The Philip
pines raised the only objection
to the composition of the pro
posed commission.
Small Nations Oppose
Some of the small nations
pleaded for a delay in the vot
ing, but they were overruled.
The vote came unexpectedly
today after the big powers had
appealed for quick action.
Committee action on the
atomic energy resolution was
tantamount to final approval.
The resolution still requires
formal approval by the full
assembly before the commission
can actually be created.
UNO officials meanwhile
were considering how to handle
Iran's complaint against Rus
sia, which was submitted offic
ially on Saturday.
The security council prob
ably will receive the protest at
its next regular meeting.
S. P. PLANS TWO
DE LUXE IRIS
A pair of de luxe diesel-pow-ered
daytime streamliners, to be
called the Shasta Daylights, will
be placed in daily service be
tween Portland and San Fran
cisco by the Southern Pacific
company. President A. T. Mer
cier informed S. P. officials here
today.
The new trains will operate
over the Shasta route, it was
stated, but bus service will be
established from Grants Pass
south to Dunsmuir, and from
Roseburg north to Eugene to
provide direct connections with
Siskiyou line points.
Keep Siskiyou Train
Present overnight train serv
ice between Grants Pass and San
Francisco, and between Ashland
and Portland, will remain in ef
fect. Along with his official an
nouncement of the new coach
streamliners, Mr. Mercier also
revealed plans for progressive
streamlining of the Cascades,
premier sleeper trains on the
Portland-San Francisco run.
It is hoped the Shasta Day
lights can be put in operation by
the end of the year and that the
new cars being planned for the
Cascades will begin arriving
early in 1947.
WEATHER
Northern California Gener
ally clear today, tonight and
Tuesday; except morning fogs
interior valleys and most cloudy
extreme northern part; slightly
warmer southern San Joaquin
valley today; gentle variable
winds off coast.
Truman Paints Bright Farm Future
With Income Double 1936-39 Net
Washington, Jan. 21 (U.R)
In his state of the union message
today. President Truman painted
a bright picture for America's
farmers.
The chief executive told the
farmers that demand for their
products will continue to be
strong and prices high at least
for the next year or so.
Mr. Truman promised the na
tion's farmers that the govern
ment will continue to make good
on its price support commit
ments. But he warned that food
pries must be held where they
are to prevent disastrous infla
tion. That, he added, means
continuing price control and
food subsidies.
The president said that the de
cline In food prices expected
after the end of the war has not
appeared and is not likely to
occur for many months to come.
Full L' -4 Wire
TO
DEGAULLE CHAIR
Former Premier and Minis
ter of State Would Suc
ceed French President
Paris, Jan. 21 (UP.) Former
Premier Edouard Herriot and
Vincent Aurinl, minister of
(o(n ii.ri (he leading candi
dates' today to succeed Gen.
Charles DeGaulle as president
of France in a cumuiun s.-
ernment.
DeGaullc's sudden resigna
tion last night precipiatcd in
mnnmivprine bv the three
political "parties to find a man
with sufficient pomicai aim
popular support to fill the post
he has held since its creation.
Action Final
The resignation of DeGaulle
was described officially as
Mf;i ori irrevocable." Cabinet
Director Gaston Palewski said
DeGaulle would retire aei in
itely from political life."
The aggressive communists
were reported ready to propose
their leader, Maurice Thorez.
as the new president at the
head of a three party coalition
with the socialists and popular
republicans.
In event of a coalition of
communists, socialists and the
more conservative popular re
publicans, the socialist Auriol
seemed a likely choice.
The official reason given for
n.r..nl'. resignation was said
to be his refusal to accept a 20
per cent cut in military expen
ditures demanded by the left-
wing parties.
Fundamentally, me resigna
tion was based on a much deep
er fight between DeGaulle and
the left-wing organizations.
Lipstick Message
Blames Drink In
Slaying of Woman
Beardstown, 111., Jan. 21
(U.R) The body of Lucille Rife,
30, of Beardstown. was found
in a hotel room today. Written
In lipstick on the wall was this
message;
'I killed her while I was
drunk."
Ivan de Silva. 21, a Jackson
ville, 111., war veteran, who had
registered at the hotel with
Miss Rife,, was arrested several
hours later. Police said de Silva
admitted strangling the woman
with one of her stockings.
Truman May Take
Florida Vacation
Washington, Jan. 21 (U.R)
President Truman may take a
short vacation in Florida next
month.
The White House today de
clined to give dates or possible
location, but said Mr. Truman
"may possibly take a short vaca
tion which will take him to Flor
ida." Press Secretary Charles G.
Ross added that olans for the
trip are still "quite tentative."
Thus, he reasoned, food subsi
dies must be continued beyond
June 30. 1946. However, he
a.ked congress to continue sub
sidies with the provision that
they be removed as soon as it is
indicated that the cost of living
will decline below present levels.
Mr. Truman said farm prices
are expected to remain at least
at present levels in the immedi
ate future. For the next 12
months, he added, they will
yield a net farm income double
the lB.'i6-to-IB39 average.
The president noted that farm
ers are in a better condition than
ever to meet production goals
which in 1046 call for a slightly
higher acreage than in 1945. He
explained that mortgages are
lower and savings higher than at
any time In history, machinery
and supplies will be available In
larger volume and farm labor
problem will be lea acuta.
MEDFORD, OREGON, MONDAY, JANUARY 21, 1946.
DU
STRY--1,680,
'ABLE DOCUMENT,'
MORSE'S VIEW OF
TRUMAN MESSAGE
Oregon Senator Says Con
gress Should Proceed To
Stand Up and Be Counted
Washington, Jan. 21 (U.R)
Congressional reaction to Pres
ident Truman's message today
divided generally across party
lines, with democrats approving
his recommendations for cut
ting government expenditures
almost in half and republicans
calling for further reductions in
federal spending.
House republican leader Jo
seph W. Martin, Jr., Mass., said
"it is good to sec the budget
heading in the direction of bal
ance," but "it is not what the
budget messages say that counts
most, but what the score sheet
shows hen the record is com
pleted next June."
Demo Praises
Acting house speaker John
W. McCormack, D., Mass., said
the president's communication
was an "excellent, comprehen
sive message.
Sen. Wayne Morse. R.,-Ore..
described the message as being
"on the whole, an eminently
able" document. He thought
"congress should proceed with
out stalling or delny to stand up
and be counted man by man on
recommendations." He agreed
With Mr. Truman on the "basic
principles of labor relations,
namely that voluntary, rather
than compulsory, procedures
should prevail.
CAPTAfSlLE
HURT IN CRASH
Cant. Walter H. Steele of
Camp White was critically In
jured about 1 a. m. yesterday
when cars driven by Capt.
Steel and Earl Hanscom, Eagle
Point, collided head on near the
Intersection of Crater Lake
Highway and Hilton Road.
Hanscom and dipt. Steele
were brought to the Community
hospital, the captain later being
transferred to the hospital at
Camp White. Hanscom suffered
only slight head Injuries and
was to be discharged from the
hosnital today.
State police arc Investigating
the accident.
Philandering Wife
Feeds Vet Poison
Los Angeles, Jan. 21 U.R
Mrs. Virginia McElhinncy, 28
confessed today she fed her late
husband ant paste In his cof
fee so he wouldn't learn of her
unfaithfulness while he was
overseas, police announced.
She was booked on suspicion
of murder after a coroner s
autopsy revealed arsenic in the
blood of McElhinncy, 28. who
died Dec. 30 in veterans' hospi
tal, west Los Angeles. ,
JEWISH TERRORISTS
STAGE NEW VIOLENCE
Jerusalem, Jan. 21 'U.R)
Saboteurs blew up a coast guard
station at Givat Olga, halfway
between Tclaviv and Haifa, last
night injuring 14 British soldiers
and one British policeman, au
thorities announced today.
The new violence, blamed by
police on members of the Jewish
resistance movement, occurred
while troops and police still
were investigating outbreaks
which caused four deaths in
Jerusalem Saturday.
JUNEAU HAS FIRE
Juneau. Alaska, Jan. 21 'li F?)
Investigators are probing the
snow -drifted ruins of the
Juneau's Coliseum -theater,
searching for cause of the blaze
which last night gutted the mo
tion picture house and the 26
apartments above it. Regular
firemen and hundreds of volun
teers manned 30 hoses to battle
the roaring fire which for hours
thrp!i1rneri the muin hlrw-k nf
'juucau'j buiiucjs district.
Strikers Walk Out
1
$h , ftp
fAcmm Tclfphoio)
Members of United Steel Workers (O. I. O.) mwch before the mntn pat
of Jones and Uiughlln Steel Corporation plant at Pittsburgh, Fa picket
iiig 48 hours ahead of scheduled national walkout.
Filibustering Southern Democrats
Get Rest During Truman's Message
Washington, Jan. 21 tU.P.)
Filibustering southern democrats
gave their throats a welcome
rest today while a clerk read
President Truman's 32.000-word
state of - the - union and budget
message in the senate.
They agreed to the reading,
however, only after receiving as
surance that the Interruption
would not jeopardize their fili
buster against a bill to create a
permanent fair employment
practice commission.
John Crockett, 81-year-old sen
ale reading clerk, began reading
the message a few minutes after
noon. Twenty republicans, 13
democrats and Sen. Robert M.
LaFollctle, Prog., Wis., were in
their seats at the time.
In the house, reading of the
message began at 12:06 p. m
and was Interrupted a few min
utes later by a demand for a
quorum call.
The roll call was completed at
12:33 p. ni. with 303 members
present, a quorum. The reading
FT. LEWIS CLOSE
SET FOR JAN. 31
Fort Lewis, Jan. 21 (U.R)
Army officials report more than
15,000 troops are slated to de
bark at Tacoma and be cleared
through the northwest Fort
Lewis staging area before the
area is de activated at the end of
this month. The troops will be
placed aboard troop trains and
sent to separation centers
throughout the nation.
The vanguard Is scheduled to
di-hark Wednesday when the
U.fi.E). Sht-lby arrives from Na
goya with 755 army personnel
aboard.
LAST RITES TUESDAY
FOR MRS. G00DHEW
Ashland. Jan. 21 Funeral
services will be held at the Lit-
willer Funeral Home here at
2 p.m. Tuesday for Anna Sophie
Goodhcw. 57. who nnH flunv
here Saturday. Rev. James Vet-
ter will officiate and Interment
will be In Mountain View ceme
terv. The deceased is survived by
her husband, John, a son Law
rence of Eagle Point, and a
daughter. Lola, of nienrlnle.
Calif. ANo surviving are three
sisters, Mrs. Mae Rogers. Los
Angeles; Mrs. Lillian Hilton.
Wenatchee. Wash., and Delia
Olson. Harrison. Ida.; three
brothers. Henry Johnson. Coeur
d' Al-ne, Ida., Louis, Wallace,
Ida , and James, Lewlston, Ida.
FAMILY ESCAPE FIRE
Portland, Jan. 21 lU.R) Fire
officials report Mr. and Mrs. W.
Nash and their three young sons
escaped serious Injury early to
day when fire gutted their boat
house homo on the second floor
of Lee McCudy's river store and
moorage at the east side of the
Willamette below tho Morrison
bridge-
Tribune
United Press Full
ATEST
Ahead of Schedule
was resumed but Rep. Robert L.
Doughton, D., N. C, arose to
make a point of order too noisy
he said.
Members walked in and out
as the reading progressed
Others sat in their seats, listen
ing with varying degrees of In
terest. One republican read a
newspaper part of the time. A
democrat scanned the Congres
sional Record.
STAGE UPRISING
Athens, Jan. 21 (U.R) The
Greek government imposed rigid
martial law In the southern
Peloponnesus cities of Kalamnta
and Sparta today and dispatched
motorized forces to subdue an
uprising by the monarchist "X"
organization that has cost 60
lives.
Prime. Minister Themistocles
Snphoulis ordered establishment
of courts martial with powers to
carry out sentences immediately.
Arrest of the "X" leaders in the
two cities was expected.
The royaHsl forces have been
rampaging since Saturday, when
they killed 30 left-wing support
ers in a cafe fight, then attacked
the Kalamnta police station and
freed 30 of their own men who
had been arrested.
Former members of ELAS, the
military force of the left-wing
EAM movement, were fighting
beside the police against the Roy
alists. Police and soldiers guard
ed the prison where many ELAS
men who fought in the 1U44
civil war are detained.
Medford Students
Receive Party Bid
University of Oregon, Eugene,
Jan. 21 (Special) llortense Jen
nings, daughter of Dr. and Mrs
George S. Jennings, Churlenc
Thurston, daughter of Mrs.
Gladys Thurston, and Marilyn
Wright, daughter of Mr. and
Mrs. Paul Wright, all of Med
ford, will be guests of Mortar
Hoard, senior women's honorary
In the University of Oregon, at
its annual Smarty Party for ell
freshmen women maintaining a
B average or above for their first
term of school.
LEFT WING PARTISANS
WIN RHINELAND VOTE
Frankfurt, Jan. 21 UR) A
final tally on Germany's first
free elections since 1033 reveal
ed today that the left-wing
social democratic parly scored
a three-to-two popular victory
yesterday over the Tightest
Christian democrats in the
heavily Catholic rhincland.
Early returns put the Chris
tian democrats well out in
front In the 17 Hessian coun
ties where township council
men were being elected In com
munities with populations of
J,00O or lea.
Luted Wire
NO. 256.
FARM EQUIPMENT
PLANTS ADDED TO
ROSTER OF IDLE
International Harvester Co.
Workers Walk Out in 11
Factories Strike Orderly
. By United Press
Walkouts in steel mills from
coast to coast sent the number
of strike-Idled American work
ers to a new high of 1,680,000 to
day. In the mlghtest strike blow
ever aimed at U. S. industry, an
estimated 750,000 steel workers
went off the job in 1,200 plants
located in 30 states.
Another 30,000 workers went
on strike in the farm equipment
industry, where members of the
CIO Farm Equipment Workers
union walked out on the Inter
national Harvester company in
11 plants.
Strike Orderly
The steel strike was orderly,
and 11 hours after it started
there was only one report of a
disturbance. That was at Cin
cinnati where a non-striker was
arrested for waving pistol at
pickets.
The strike started officially at
12:01 a. m. Philip Murray, presi
dent of the steel workers and of
the CIO, said lt was 100 per
cent effective. Murray said the
next move was up to the com
pany in tho dispute over the un
ion's wage demands.
Elsewhere in the critical re
conversion picture:
1. The government reportedly
was ready to end a strike of
nearly 300,000 CIO and AFL
packinghouse workers by seizure
of strikebound meat plants, pos
sibly by midweek.
2. Labor Secretary Lewis B.
Schwellenbach called a confer
ence tomorrow with officials of
the Westlnghouse and General
Electric companier and the Unit
ed Electrical Workers (CIO),
whose 200,000 members have
been on strike since last Tues
day. 3. New York's vast transporta
tion system was threatened as
CIO transport workers officials
announced that a date would be
named tonight for a strike of
32,000 subway, streetcar, bus
and elevated workers.
Long Fight Seen
The CIO steel workers' once
postponed strike call became ef
fective at midnight when pickets
marched to the mills to take up
their wage battle. lioth sides set
tled down for a long, hard fight.
Tho strike, climaxing months
of negotiation over the union's
bid for more pay, was accom
plished without Incident. Words
and statistics Bnd conferences
had failed.
Civilian Production Adminis
trator John D. Small in Wash
ington termed the walkout a
"national disaster." He warned
thai luuny tactnries would fcc
forced to shut down or curtail
operations for lack of steel, ad
ding still more thousands to the
nation's strike Idled.
Except for a scattering of
small companies, led by Henry
J. Kaiser's Fontana Steel Co.,
in California, which met the un
ion's wage demands, operations
had ceased.
And throughout the rest of
the country pickets ringed the
plants of General Motors, the
"big three" of the electrical in
dustry and the major meat pack
ers. A high government official
said seizure appeared the only
course for ending the six-day .
meat strike and replenishing
supplies, already down to 25 per
cent of normal. He said no date
had been fixed but that it might
come tomorrow or Wednesday.
San Francisco averages 22
Inches of rain annually, 68 per
cent of all possible sunshine.
Weather
rORFCAST Cloudy tonlht
and TutuUy with occasional
light rain, tnoilty In moun
tains. lightly warmer to
num.
Temp.
Hlih'it VnlrdaT
Loweil this Morning . - M
BLOw
00 IDLE