The Daily Messenger from Canandaigua, New York on January 7, 1948 · Page 1
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The Daily Messenger from Canandaigua, New York · Page 1

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Wednesday, January 7, 1948
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9- I 1 ««*. Fouu ded ONTARIO Founded ,,___ BEPOgRORY * MESSENGER _ Consolidated 1M2 THB DAILY ME8SENQER Founded 1907 Established in 1797. Vol. 151. No. 5. The Weather Partly cloudy and colder tonight; Thursday cloudy, and cold followed "by light snow. CANANDAIGUA, N . Y , WEDNESDAY, JANUARY 7, 1948 11 - - » · -" " ·"···'·"·ijij.L/.n. j., um-\ u/i.n.1 /. iM4o o« i w - w -·»-«'-»...*·--*· T ^^^ -- II _.- ' ° ^ Single Copy, Blye Cents ruman Asks Tax Shift To Cornorations Dewey Blames Truman For Inflation Submits Plans To Kelp Cheek Runaway Prices Proposes Broadening of Local Tax Program; 'Pledges No New Taxes By illenry Leader ALBANY, i/pj--Governor Dewey blamed President Truman today for the "exorbitant" cost of Jiving and submitted to the Legislature a program to check inflation in New York state, highlighted by a pledge of no new taxes. Dollar devaluation, the increase in debt and other policies of President Roosevelt in the 1930s also contributed "to the perilous situation in which our country finds itself." Dewey asserted in his annual message to the 171st session of jhe Legislature. "Such a situation as we have today in the nation." the governor insisted, "could have come only* as ·the cumulative result of a history of errors over many vears." "Clearly," Dewey said, "the situation cries out for the most careful husbanding of our resources" in the face of soaring costs and the need to maintain essential state services; Local Tax Program The governor also proposed: 1. Broadening of the permissive local tax program to permit cities under 100,000 and all counties to use revenues from such levies for general purposes. 2. An increase in state aid to education, amounting: to "substantial minions, · ior distribution among the poorer school districts. 3. Cost of living pay boosts for the state'-s jB5,OQQ-.cLvil service em- ployes." *' * " 4. Extension of the Veterans' emergency housing program for another year. 5., Increased unemployment insurance and workmen's compensation benefits, 6, Continuation of the state's ------__ TNT Destined for Palestine Taken to Safe flrea -- r~t-Vxrrtr lrtrf , , . . i , .._ ^ ***W%* 000, an area six T^WW^n ·*""+ L -*------.. -. « 1.* JVCV M. «.t*.41Aia,£OJJ, IU IJK Kl Jersey City, which has an area of 21.5 square miles and '1 ·- tugboat Justine McAllister in Raritan Baj, off i "-i7 J "·--* ~ »«*.w»i. .K~MC4.|1U. AltU i Wn^t iV?? spo * after beui * discovered on a Jersey ·~ in crates labeled machinery. Highlights of Dewey Messag standby rent control law and the commercial rent laws for one year. 7. 'Continuation of the state food" commission "on a temporary basis." Clear at War's End Dewey, an undeclared candidate for the Republican presidential nomination, declared "the danger of runaway price inflation resulting from wartime pressures, was clear at the end of hostilities. ^'However, instead of controls being maintained until peacetime production could get started," he said, "the entire structure of wartime inflation control was undermined by executive order on Oct. ALBANY, (/?)--Governor Dewey told the New York state legislature today: The present inflation, arising pnrnaniy irom dislocations ot the war, has been greatly aggravated by_other factors, notably the vacillations of economic policy in the national government. The entire structure of wartime inflation contiol was undermined by executive order on Oct. 30, 1945, relaxing wage controls. This fatal action, together witli bad enforcement generally, destroyed the effectiveness of price controls by the summer of 1946. Fuel Oil Shortage Grips East Coast NEW YORK, {#)--An acute fuelt M a 0 r William O'Dwyer appealed oil shortage gripped the northern to t; e U. S. Maritime commission Atlantic seaboard area today aj for 20 additional tankers to help ~ the New York metropolitan area National government policies have brought us to the perilous situation in w h i c h our country finds itself. relaxing .wage President Trunian issued the order "TJiis, fatal action," he continued, "together with bad enforcement generally, destroyed the effectiveness of price controls by the summer of 1946. Thus was launched the wage-price-profit spiral which soon wrecked the last vestiges of inflation control and brought about the present exorbitant scale of living costs." Greater Production "In greater production lies the direct answer to the shortages of the things that are at the seat of natienal-and-'woFld inflation," the governor told,the Republican-controlled Legislature. To help combat inflation, Dewey said, "Here are some of the things the state government has done and proposes to do in the coming year: "1. We have kept expense down to^he limit possible without impairing essential services to our pexjple. We have been particularly careful in maintaining services to the helpless inmates, wards and patients of our state institutions. "2. We have restrained expenditures wherever possible on every kind of public works, particularly highways and parkways, because of the high costs and the directly inflationary effect of such govern"Continued on Page S Pea Soup Morning, Noon, Night Too Much for Husband PORTLAND, ME.. (M -- Etta Mae Bracy of Dolgeville, N Y served her husband pea soup morning, noon and night) and in sandwich form, a witness testified in superior court yesterday. The husband, Raymond Bracy of Yarmouth, is seeking a divorce alleging cruel and abusive treatment. His brother-in-law, Ernest Alexander, was asked in court if Mrs Bracy prepared'meals for her husband. He replied "not unless vou call pea soup for breakfast, pea soup for dinner and pea soup for supper, meals." Alexander added that "she even put pea soup sandwiches in thp lunches he carried to work," The state v\ili have no current surplus this year, but will not increase taxes for the 1948-49 fiscal year. To increase taxes would be the sheerest follv and the most irresponsible government to exhaust our sources of revenue and build up our expenses lo a maximum in an inflationary period without the slightest icgard for prudence or the possibility that a rainy day might sometime come. Consideration should be given proposals to broaden Hie controversial local taxing program which in principle is essential to the financing of rising costs of some local governments. The stale's rent control laws should be extended for another year. Commercial rent controls, effective in New York City only, also should be continued. The veterans' emergency housing program must be continued. An appropriate adjustment pay of state employes w i l l recommended. The consiitution should amended so thai veterans, in be be now g outside of the state but residents before the war, may share in New York's S400,000,000~ bonus. Thr program for education is not postponable. The legislature will receive recommendations lo include an amount equivalent to last year's emergency appropriation of $27,500,000 (millions), as well as additional millions, in the formula for state aid to common schools. Plane Crashes In Georgia, 27 Believed Aboard SAVANNAH, Ga., OR--A twin- engined coastal airlines plane en route from Philadelphia to Miami, Fla., crashed in a marsh on the Savannah river today. The G'vil Aeronautics authority said the plane carried 25 Puerto Rican passengers and a crew of two. John Register, a Savannah pilot who flew over the scene of the wreckage, reported the plane was broken into several parts. He said he saw no survivors. Earlier reports from unidentified pilots said survivors were s e e n walking aiound the ship. PARIS, OP) -- Sixteen persons perished and .seven others were hurt in two separate Euiopean planp crashes last night. Three Americans were among the dead. An air France DC-4 from Brussels crashed and burned Vhile coming in for a tending at Le Bpurget airfield in Paris,, killing 15 of the 16 persons aboard, including the three Americans. A British European airways twin-engined Viking hit a tree in the rain while coming inlo London's .subuiban Norlhholl au- drome from Glasgow. The pilot was kilM a n fl S j x of f ,, e 0 ,- ncr 14 persons aboard were hurt Governor Kills Hopes for More Aid fron^State Urges Careful Consideration to P r o p o s e d 'Changes in Permissive Tax Law By Harry O'Donnell ALBANY, (/P)--Go\ernoi Dewey today apparently killed localities' hopes for increased state financial aid--except foi limited new help to education--and lecommended expansion of his controversial non- property local tax program. Dewey urged the legislature in his annual message to give "careful consideration" to these proposed changes in the- permissive law, enacted last winter by a grumbling Republican majority: 1.--Extension of the optional taxing powers to municipalities oJ less than 100,000 population. 2 --Authority for counties to levy a sales tax to produce revenue for general county puiposes. 3.--"The addition of other permissive taxes" to the eight now authorized. Special Committee The governor, speaking of the "serious fiscal condition of our municipalities," reminded t h e legislature that a special committee was studying the feasibility of rev ising the constitutional two per cent limit on local real estate taxes. There have been strong recom- Helps Hungry s Individual Taxpayers Wonld Pay $40 Less Sharp Fisht Expected President Would Boost Corporation Tax $3.2 Billion; 7 Also Asks Anti-Inflation 'Powers, Marshall Plan Funds, Minimum Wage Boost; Rent Control, Compulsory Health Insurance Ellen Solomon (above), seven, asked friends who were planning to attend her birthday party at Charleston, S. C., to bring money instead of presents At the party she received $19.84 w.hich she forwarded to a ien--t organization in New York and asked them to ihip a food parcel to some needy family in Europe. . (AP Wirephoto) The state has a great burden in the offing if it is to meet the increasingly greater needs foJf higher education. The commission on the need for a state university soon will report its recommenda- . . . . - . - tions. The needs are great enough ' n £ to the senate war Fight Mapped on Oil BlackMarket ALBANY. OB--State Fuel Coordinator Charles H. Sells aim-, lo curb any black market fuel oil operations m New York. Sells, in a directive laM night, oidered local coordinator to notify him of incidents a n j w h e r e in the state of "abnormal price increases resulting from the fuel oil shortage." He also asked immediate reports of all cases in which local fuel oil distributors have been "cut more than the amount nece^ary to ef- foct a 15 per cent reduction in supplies to consumers." Local coordinators w e i c instructed to request police investigation "on a voluntary basis" of emergency distress cases. M. - j *-- - . ··*y*i.i**^. SUpplv Boston and Philadelphia also reported fuel emergencies and Gov. Charles M Dale of New Hampshire urged striking AFL truck drivers in Boston to permit-uninterrupted passage of food, fuel and medical supplies into his state to avert "severe hardship." Dale wired Massachusetts Governor Robert F. Bradford yesterday "that emergencies are developing due to the reported halting in Massachusetts of trucks carrying these vital supplies to New Hampshire." Bradford said he believed "responsible union officials are making ev cry effort" to move such supplies Mayor O'Dwyer wired his appeal to the Maritime commission after warning that fuel oil distribution planned for the recently weather-harried New York area by the oil industry in the next 90 days w ould meet v "at most 60 per cent of our minimum requirements " He asked that the tankers be allocated Ihiougfc February. Philadelphia's emergency was described by Mayor Bernard Samuel as "not only critical but threatens to becomo disastrous." He urged oil users to reduce consumption. Massachusetts State Oil Conservator George P. Rockwell told householders that use of healing oil must be cut 15 per cent to pie- vcnt SGTOO suffering in that state. Electrical Union jTo Seek Pay Hike NEW YORK, OP)--The CIO United Electrical Workers union says it will seek "substantial wage increases" in 1948 for its 300,000 members employed by the "big three" of the electrical manufacturing industry. The decision to demand the new round of post-war increases from, the three manufacturing firms-General Electric, Westinghouse Electric, and the electrical division of Geneial Motors--was reached yesterday at the conclusion of a two-day conference of 300 U-E delegates. The union announcement came less than a week after G-E re- President Lists Five U.S. Goals In 10-Year Plan WASHINGTON, UP--President Truman called on America today to achieve in ihr- next ten years five "goals foi the future which have the greatest bearing upon the foundations of our democracy and Bj Ernest B. Vaccaro WASHINGTON, (/R--President Truman asked Congress today to /ote ever individual taxpayer an .ediate $40 tax cut for himself each dependent and to raise rporation taxes by $3,200,000,000 (billions) to offset it. He thus laid the groundwork for another tax battle with the Republican-controlled house and senate in a state of the union address en the second day of tne 1948 session Mr Truman labeled his recommendation a "cost of living" credit designed primarily to relieve the small taxpayer. Because of inflation, he said, the government should not reduce its total revenues--and he described corporations as well able to take up the slack. Counter To GOP Plan The recommendation ran sharp- and rvnV,TM "^"""vr" 1 ''if* 1 ? 1 i," 1 " j me nappmess or cur ODwyer of New York Qty He listed them in his state of from upstate sources, to Leaders of GOP Ready to Fight Truman Tax Plan boost the limit to two and one- half percent. Comptroller Frank C. Moore has called for a "realistic . . .more effective limit," He has pointed out. that more than 50 cities now "evade" the limit through legal "devices." Precluding the possibility of an administration jump in direct state aid, Dewey noted that 54 per cent of state appropriations are for local assistance and added: "The stats government has in recent years gone far--perhaps too far--in its expansion of local assistance. Degenerate Effect "Apart from the effects on state finances and state government m the future, there is the progressively degenerate effect that excessive grants-in-aid produce upon aided units of government. "I have spoken of this before and I know you agree with the basic philosophy of maintaining the strength and responsibility of local government. The test of the principle is in bad weather rather than fair." Only Erie county and the city of Syracuse have adopted any of the permissive non-propertv taxes. Several upstate. Republican-controlled boards of supervisors have called for repeal of the program in favor of increased .state aid. Erie adopted a one percent sales tax lasf .Tuly 1. A two prrccnt the union message to Congress as follows: -1. ' f Ta secure fully the essential our citizens.' our citizens are human "rights of C'x x x some of sales levy becomes March 1 in Syracuse. effective The program, in short, permits counties to levy any or all of six maximum two per cent sales tax, to produce revenues for educational purposes only. Actually, the county serves only as a collection agency for local school districts L o which the revenues are apportioned. Special City Program The law also permits cities of 100,000 population to use for general purposes, including education, any of the taxes not levied bv the counties, plus two others. There is a special program for New York- City, supplementing its previous local taxing authority. still denied equal opportunity for education, for jobs and economic advancement, and for the expression of their views at the polls. Most serious of all, some are denied equal pi election under our laws." 2. "To protect and develop our human resources." ("We should now extend unemployment compensation, old age benefits, and survivors' benefits' to millions who are not now protected, x x x raise the level of benefits, x, x x Our ultimate aim must be a comprehensive insurance system to protect all our people equally against insecurity and ill-health x x x to provide an adequate education foi exery pei- son.) 3 "To conserve and use our na- ional resources so t h a t (hey can contribute most effectively to the welfare of our people." ("We must vigorously defend our natural wealth against those who would misuse it for selfish gam x x x intensify our efforts to develop new supplies and to acquire stockpiles of scarce materials x x x expand our reclamation program to bring millions of acres of arid land into production x x x protect and restore our forest 1 ; \ x continue to erect multiple-purpose darns on our great rivers \ x -: to prevent floods, to extend our inland waterways and to provide hydro-electric power.'') 4. "To lift the standard of living for all our people by strengthening our economic system and sharing more broadly among our people the goods we"produce." ("x x x We can increase our annual output by at least one- third above the present leveJ. We can lift our standard of living to nearly double what it was ten years ago. If we distribute these gains properly, we can go far toward stamping out poverty in our generation.") 5. "To achieve world peace baaed on principles of freedom and justice and the equality of all nations." duced the price of many household appliances by three to 10 per cent, a reduction which its president, Charles E. Wilson, said could be- maintained only if labor and material costs did not increase. By Oliver De Wolf WASHINGTON, (^--Republican cries of "political" and "unsound 1 today greeted reports that president Truman might propose tax relief for low income groups only if the revenue loss were balanced by .higher levies on business profits. A close associate of Mr. Truman disclosed earlier this week that the chief executive was weighing such a suggestion from some of his advisors. Without waiting to hear whether the president would include this idea in his state of the union message today, influential GOP members of both house and senate left no doubt that they are all set to fight it. Two Support Truman At least two Democrats, However, said they would go along with Mr. Truman in preference to :he Republican bill to cut income :axes for all individuals by a total of 55,600,000,000 without disturbing present corporation taxes. Senator Lucas of Illinois, the Democratic whip or assistant party floor leader, told a reporter hat as a matter of fact he has )een working on a bill somewhat along the same lines as those mentioned by the White House adviV TS. He would revive the wartime excess profits tax--that is, a special lev on all profits above those larned in some representative base neriori-and apply individual tax- relief by two means: (A) Hiking the present S500 personal exemption to $700 and applying the income-splitting community property principle to all states. The Republican-backed bill written by Chairman Knutson (R- Mmn) of the house ways and means committee provides for a $100 boost in personal exemptions, the community property idea and, in addition, cuts ir present levies ranging from 30 per cent in low brackets to 10 per cent at the top. Taking issue with the Knutson bill and voicing hope Mr. Truman would offer "nib own counter-proposal, Rep Dingell (D-Mich) com- ly counter to a 55,600.000,000 GOP tax cutting measure sponsored by Chairman Knutson (R-Minn) of the house ways and means committee which would give inconje tax payers percentage cuts all along the line and leave corporation taxes unchanged. Mr. Truman's 5,000-word message to a joint session of the two chambers also called' for: 1. Enactment of " the 10-point anti-inflation program he submitted to the recent special session, including standby wage-price control and rationing authority^ The bulR of this program was turned down by the Republican. leadership. 2. Prompt Congressional approval of an initial expenditure of $6,8QQ, 000,000 to finance .the European recovery program -- the Marshall plan -- ror 15 months from next April 1 as a "decisive contribution to world peace." Universal Training 3. Quick action to set up a program of universal training as the" foundation of a national security program, and maintenance "of strong armed forces as long as ''there remains serious opposition to the ideals of a peaceful worM." 4. An increase in "the 'minimum wage J.J.U1U iu uj u CCULS ui uuuj.. 5. Extension and strengthening of rent controls which are due "to expire February 29. -o. Broadened social security coverage and increased benefit payments. - . -7. Legislation to protect - the civil rights of every individual. 8. A national health program financed" iy compulsory insurance. Election Quotations In a message certain to be quoted frequently by Democratic orators in the coming national eWc- tion campaign, Mr. Truman ' said he wants to keep revenue collections where they are and still hetp those who need relief to "buy t£e necessities of life." " ^ Asserting that corporate proffts reached the "extraordinary ,, Jugfi level" , of $12,500,000,000 ' in 1946 and 517,000,000,000 (billions)" -'in" 1947, the chief executive said it was proper to shift "a larger share of the load" to big businesses. They can "well afford" to 'carry it, he declared. *-**± .The proposed Individual tax credit would date back to January 1. The President left for future explanation how the ]ncrea$e4 levies he proposed on corporate profits would operate and mented: "Brother, that makes sense to me. Some kind of an ex- details of a suggested "appropflatg adjustment for small corpora? tions." Mr. Truman coupled American economic aid under the proposed European recovery plan with armed might as equal necessities in keeping peace. *"" Greeks Helped He said' the ?400,000,oee-a.ssi§t- ance program voted last year '"for Greece and Turkey enabled ..them 10 preserve their integrity "aga^tst foreign pressures." The Presiaeut did not mention Soviet Russia or Soviet-dominated countries bj£ name, but said without this he?§l the result might have been "radfr cally different." Continued preservation to Gre,ek and Turkish integrity, he said v "will have a powerful effect" upon other nations of the 'middle east and Europe "struggling,, 'io maintain their independence." His remarks were carried ("x x x So long as there re- cess profits tax on corporations, SAVANNAH, Ga., JP)--Fifteen persons were killed and nine in- iured today when a coastal airlines twin-engined plane crashed in a marsh on the Savannah river. mams serious opposition to the ideals of a peaceful world, we must maintain strong armed forces. x x_ x Early provision for universal training x x x is of world importance.") Meyers Pleads Not Guifcy To Perjury to make room for relief cf the little individual taxpayers Fs what we need." WASHINGTON, /?' -Maj. Gen. Bennett E. Meyers, accused of Iv- to presage a costly program-- perhaps an exceedingly costly program in the years ahead. A balanced budget will be presented by hard work, planning and good administration. A plan will be presented to finance the state government without increases in rates of tax-ation, in order not to discourage greater output by labor,' industry and. agriculture cf our state and ponlrihnto to the inflation, thus committee about his private wartime business deals and of inducing another witness to commit perjury, pleaded innocent in federal court today. Federal Judge David A. Pine, before whom Meyers was arraigned, set the trial for Feb. 16. Judge Pine gave defense counsel 10 days in which to file motions attacking Meyers indictment. Mayers was indicted on three charges of perjury and on three ilml he persunrfod Bleriot H. Lamarre, 35, a former business associate of the general, to tell /aheiioocis to the senate committee. Lamarre also was indicted on three charges of perjury and pleaded guilty yesterday "before Judge Pine. Sentence against Lamarre, a resident of Dayton, O., was deferred pending a report from a probation officer. Evidence before the senate committee showed Lamarre was installed as president of the Aviation Electric company, founded by Meyers in Dayton, while the general held a high post in air forro purchasing durinp: the wm, The arraignment of Meyers required only a few minutes. Judge Pine pointed out that a $2,000 bond posted by Meyers in New York covered only one of the two indictments and said bond would have to be posted on the other indictment. District- Attorney George Morris Fay said it would be satisfactory to have the present bond stand, with *1,GOO of it shifted to the second indictment Meyers thus was allowed to go free, but Judge Pine ordered him to be fingerprinted and photographed, Lnmarre, who (old Ihe senate war investigating committee he was the "dummy" president of a Dayton aircraft parts plant actually owned by the 52-year-old Meyers, is expected to be the government's main witness against the retired New York general. The Ohioan is free on 51,000 bail which he posted in Dayton last month. The charges against Meyers, now retired and stripped of his tax-free, disability retirement pay, and Lamarre grew out of an inquiry by the senate committee into Meyers' private business activities during the war, ; 'BRITAIN WARNS BALKANS LONDON, 7P) -- Britain has warned Yugoslavia and Bulgaria of grave consequences if the Balkan nations recognize the commu- j nist state proclaimed in northern Greece by Markos Vafiades, the foreign office announced today. The warning was issued after Bri- 1i=h-American consultation TREASURY BEPORT WASHINGTON, W-The position of the treasury Jan. 5: Receipts, $125,597,398.51; expenditures, $165,993,012.47; "balance. S2,- 461,224,^40.55; total debt, $256,495,783,896.44; decrease under previous day, $1,183,023.95. BRITISH CABINET TO MEET LONDON, UP)--The cabinet will survey Britain's foreign policy tomorrow, and government officials say the discussion will lead to I abroad as well as to the nation radio. The President gave no due to the size of the proposed budget for the fiscal year starting next July 1. The budget estimates" will be sent to Congress Monday. However, he 'declared .that "government expenditures have -"been" and must continue to be hejd to the lowest safe levels." '"' ' -Expenditures Cut He said expenditures have been cut from more than $63,000,000, 000 in the 1946 fiscal year to less' than $38,000,000,000 in the current liscal yeai ending next June', 30', while the number of .civilian fSd- eral employes has been reduced from 3,750,000 to 2,000,000. Reaffirming his belief in th,e ".soundness and pro'miw?" of l$e plan to help Europe restore its economy, the President declared that "the ability of free meh b overcome hunger and despair wtyl be a moral stimulus to the entir.9 world." He held ,out the promise of helping nations elsewhere in^workiiyc for "jworld economic recovery 1 ? strengthened Anglo-American co- and said he will submit to" operation in areas where Soviet (.'present,session of Cefogrest,"a and western policies conflict. I Continued fen'

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