The Daily Messenger from Canandaigua, New York on January 7, 1948 · Page 3
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The Daily Messenger from Canandaigua, New York · Page 3

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Wednesday, January 7, 1948
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^^ Found* t ONTAUO * MESSENQDI «d 1H2 THE DAILY Founded 1907 Established in 1797. Vol. 151. No. 5. TTw Weather P»rtly cloudy and slifhtljr colder tonight; Thunday cloudy and cold foltowed fey Dght CANANDAIGUA, N. Y, WEDNESDAY, JANUARY 7,1948 Truman Asks Tax Shift Single Cppjr, Five Cent* Dewey Blames Truman For Inflation Submits Plans To Help Check Runaway Prices Proposes Broadening of Local Tax Program; 'Pledges No New Taxes By'Alenry Leader ALBANY, (.#)--Governor Uewey blamed President Truman today for the "exorbitant" cost of living 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 the 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 years." "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," lor distribution among the poorer school districts. 3. Cost of living pay boosts for the 'state's..65,0.00...civil service em- ployes. '""' '"" * " · ' ' · · 4. Extension of the Veterans' emergency housing program for anothefr year. 5,. Increased unemployment insurance and workmen's compensation benefits. 6, Continuation of the state's 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 pf 'runaway price inflation resulting from wartime pressures, was clear at .-the end of hostilities. "However, instead of controls being maintained until peacetime production could gel started," he said, "the entire structure of wartime inflation control was undermined by executive order on Oct. 30, 1945, relaxing .wage controls." President Trunian issued the order. "This 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 nattonal-and-: world inflation," the governor tbld.the Republican-controlled Legislature. To help combat inflation, Dewey said, "Here are some of the things TNT Destined for Palestine Taken to Safe Area Governor Kills Hopes for More Aid from State Urges Careful Consideration to P r o p o s e d Changes in Permissive Tax Law Cases of TNT, said by police Captain Patrick Flannagan to be enough to devastate an area six times that of Jersey City, which has an area of 21.5 square miles and a population of more than 300,000, are guarded by tugboat Justine McAllister in Raritan Bay, off Staten Island and New Jersey. The explosives, meant for Palestine, were lightered to a safer spot after being discovered on a Jersey City pier when about to be loaded on a ship in crates labeled machinery- Highlights of Dewey Message ALBANY, (yP)--Governor Dewey told the New York state legislature today: The present inflation, arising primarily irom dislocations of 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 control was undermined by executive order on Oct. 30, 1945, relaxing wage controls. This fatal action, together with bad enforcement generally, destroyed the effectiveness of price controls by the summer of 19-16. National government policies have brought us to the perilous situation in which our country finds itself. The state will have no current surplus this year, but will not increase taxes for the 1948-49 fiscal year. To increase taxes would be the sheerest folly and the most irresponsible government to exhaust our sources of revenue and build up our expenses to a maximum in an inflationary period without the slightest regard for prudence or the possibility that a rainy day might sometime come. Consideration should be given proposals to broaden the controversial local taxing program which in principle is essential to the financing of rising costs of some local governments. The state'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 hous- the state government has done and ! ing program must be continued, proposes to do in the coming year: "1. We have kept expense down to the limit possible without impairing essential services to our people.-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 nigh costs and the directly inflationary effect of such govern'- Continued on Page 8 Pea Soup Morning, Noon, Night Too Much for Husband PORTLAND, ME.. (/Pi -- 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 Tor her husband. He replied "not unless you 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 1hf lunches hp carried to work," An appropriate adjustment in pay of state employes will be recommended. The constitution should be amended so t h a i veterans, now living outside of the state but residents before the war, may share in New York's 5400.000,000 bonus. Fuel Oil Shortage Grips East Coast NEW YORK, JP--An acute fuel flavor William O'Dwyer appealed oil shortage gripped the northern Atlantic seaboard area today aj Plane Crashes In Georgia, 27 Believed Aboard SAVANNAH, Ga., /P--A twin- engined coastal airlines plane en route from Philadelphia to Miami, Fla., crashed in a marsh on the Savannah river today. The Civil 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 around the ship. PARIS, (/P) -- Sixteen persons perished and seven others were hurt in two separate. European plane crashes last night. Three Americans were among the dead. An air France DC-4 from Brussels crashed and burned while coming in for a landing at Le Bourget airfield in Paris, killing 15 of the 16 persons aboard, including the three Americans. A British European airways twin-engined Viking hit. a tree to the U. S. Maritime commission for 20 additional tankers ;to help' the Now York metropolitan area supply. . 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.. 1 ' 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 every 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 would meet "at most 60 per cent of our minimum requirements." He asked that the tankers be allocated through February- Philadelphia's emergency was described by Mayor Bernard Samuel as "not. only critical but threatens to become disastrous." He urged oil users to reduce consumption. Massachusetts State Oil Conservator George P. Rockwell told householders that. use. of heating in the rain while coming i n t o I oil must, be cut 15 per cent, to pre- London's .suburban Northholl air- vent some suffering in that state. drome from Glasgow. The pilot The program for education is not postponable. The legislature will receive recommendations to 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. The state has a great burden in the offing if it is to meet the increasingly greater needs fof higher education. The commission on the need for a state university . _ WASHINGTON, / ? - M a j . Gen. soon will report its recommenda- pennett E. Meyers, accused of Iy- tions. The needs are great enough l m £ to th e senate war investigating Fight Mapped on Oil BlackJMarket ALBANY. /Fj--Slate Fuel Coordinator Charles H. Sells aims to curb any black market fuel oil operations in New York. Sells, in a directive last night, ordered local coordinators Io notify him of incidents anywhere 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 tiie amount necessary to effect a 15 per cent reduction in supplies to consumers." Local coordinators were instructed to request police investigation "on a voluntary basis" of emergency distress cases. , Union |To 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 General 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 reduced 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 Harry O'Donnell ALBANY, (Sfi--Governor Dewey today apparently killed localities' hopes for increased state, financial aid--except for limited new help to education--and i ecommended 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 purposes. 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 the legislature that a special committee was studying the feasibility of revising the constitutional two per cent limit on local real estate taxes. .There have been strong recom- Helps Hungry Individual Taxpayers Wonld Pay $40 Less, Sharp Fight Expected President Would Boost Corporation Tax $3.2 Billion; Also Asks Anti-Inflation Powers, Marshall Phip Funds, Minimum Wage Boost; Bent Control, oni- pulsory Health Insurance . "' By Ernest B. Vaccaro WASHINGTON, President Ellen Solomon (above), seven, asked friends who were planning to attend her birthday party al Charleston, S. C., to bring money instead Of present*. At the party ' she received $19.84 WJUch'she forwarded to a ren--f organization in. New York and asked them to-ship a food parcel ..to some needy family in Europe. . (AP Wirephoto) President Lists Five U.S. Goals hi 10*Year Plan v WASHINGTON,' )-- President liam O'Dwyer of New York City and from upstate sources, to 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 state 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 in 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-property 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 las? July 1. A *v,-o percent. sales levy becomes effective March 1 in Syracuse. 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 io which the revenues are apportion- Truman called on America today to. achieve in Hie next ten years five "goals for t h e future which have the greatest bearing upon. the foundations of our democracy and i tne nappmess or cur peupie. . He listed them 'in his state of the union message to Congress as follows: -1. --'*To secure fully the essential- human "rights" ! of our citizens." ("x x x some of our citizens are 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 protection under our laws." 2. "To protect and develop our human resources." ("We should now extend unemployment compensation, old age benefits, and survivors' benefit^ to millions who are not now protected. x x x raise the level of benefits, x, x x Our ultmiate 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 for every person.) 3. "To conserve and use our national resources so t h a t they can contribute most effectively to (he welfare of our people." ("We must: vigorously defend our natural wealth against those who would misuse it. for selfish gain 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 produr.-tion x x x protect and restore our forests x x continue to erect multiple-purpose ed. 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 by the counties, plus two others. There is a special program for New York City, supplementing its previous local taxing authority. BULLETIN SAVANNAH, G..'.)--Fifteen persons were killed and nine injured today when a coastal airlines twin-engined plane crashed in a marsh on the Savannah river. Truman asked Congress today to /ote every 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- Leaders of Ready to Fight Truman Tax Plan By Oliver DC Wolf WASHINGTON, UP)--Republican cries of "political" and "unsound" 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 the Republican bill to cut income taxes for all individuals by a total of $5,600,000,000 without disturbing present corporation taxes. Senator Lucas of Illinois, the Democratic whip or assistant party floor leader, told a reporter that, as a matter of fact he has been working on a bill somewhat along the same lines as those mentioned by the White House advisers. He would revive the wartime excess profits tax--that is, a special levy on all profits above those ,,,, , r ~ *.-,-*. earned in some representative base danis on our great rivers x x :·: ' period-.-and apply individual tax to prevent floods, to extend pur 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 level. We can lift our standard of living to nearly double what it was ten years ago. ff we distribute the.se gains properly, we can go far toward stamping out poverty in our generation.") 5. "To achieve world peace based on principles of freedom and justice and the equality of all nations." ("x x x So long as there remains 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 Guihy To Perjury relief by two means: (A) Hiking the present $500 personal exemption to $700 and applying the income-splitting community property principle to all states. The Republican-backed bill written by Chairman Knutson (R- Minn) 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 his own counter-proposal. Rep. Dingell (D-Mich) commented: "Brother, that makes sense to me. Some kind of an excess profits tax on corporations, to make room for relief of the little individual taxpayers is what we need." 'BRITAIN WARNS BALKANS LONDON, -- Britain has 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 taxation, in order not to discourage greater output by labor; industry and, agriculture of our state and thus oojitrihiilfi to |ho inflation, committee about his private war-: time 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. Beyers was indicted on three charges of perjury and on three charges t h a i he persuaded Bleriot H. Lamarre, 35, a former business , The arraignment of Meyers re- associate of the general, to tell quired only a few minutes. falsehoods 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 force purchasing the. war, 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 $ 1,000 of it shifted to the second indictment Meyers thus was allowed to go free, but Judge Pine ordered him to be fingerprinted graphed. and photo- Lapiarre, who told the 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 $1,000 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. 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 British-American consultation. TREASURY REPORT WASHINGTON, /ft~The position of the treasury Jan. 5: Receipts, $125,597,398.51; expenditures, $165,993,012.47; Tralance. $2,461,224,$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 strengthened Anglo-American cooperation in areas wh«re Soviet and western policies conflict, ly counter to a $5,600,000,000 GOP tax cutting measure sponsored .by Chairman Knutson (R-Minn) ot the house ways and means con mittee which would give inconje tax payers percentage cuts 4ll 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-poirit anti-inflation program he .submitted to the recent special session, including standby wage-price control and rationing authority. The bulk of this program was turned down by the Republican leadership. '" 2. Prompt Congressional approval of an initial expenditure pf $6,8QQ,000,000 to finance .tne European recovery program--the Marshall plan--Tor 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 th0 foundation of a national security program, and maintenance bf strong armed forces as long.: asi "there remains serious opposition to the ideals of a peaceful world?' 4. An increase in "the 'iriininnun vvdge ijLOiii -iu. LU u .ceiiLS fui.uuui. 5. Extension and strengthening, of rent controls which 'are due -to expire February 29. · -6. Broadened social security coverage and increased benefit payments. '.-.:,, · 7. Legislation to protect - the? civil rights of every individual. 8. A national health program, financed by compulsory insujaini^e. Election Quotations In a message certain to be quoted frequently by Democratic bra- tors in the coining national el|c- tion campaign, Mr. Truman ; E{(i he wants to keep revenue collections where they Sure and.still help those who need relief to "buy .tje necessities of life." *-· Asserting that corporate prof^s reached the "extraordinary I level" - of $12,5pO,OOp,t)00'. in and $17,000,000,000 (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. .'.~--«i ,The proposed individual tax credit would date back to January 1. The President left for future explanation how the increased; levies he proposed on corporate" profits would operate and gavecna details of a suggested "appropflSg£ adjustment for small corporations." . . " ""· · Mr. Truman coupled American economic aid under the proposed European recovery plan with armed might as equal necessities Jrj_ J\* l * 1 7}*n° r n^n/^o · · · * * Greeks Helped He said' the :$406,000,00e^iiss,ist- ance program voted last year'for Greece and Turkey enabled^thein to preserve their integrity "agattst foreign pressures." The Presitteiit did not mention Soviet Russia :or Soviet-dominated countries name, but said without this the result might have been," cally different." : ' Continued preservation to Greek and Turkish integrity, he sai/A t "will have a powerful effect" upon other nations of the 'middle east and Europe "struggling.#o maintain their independence." His remarks were carried abroad as well as to the nation by radio. The President gave no clue to the size of the proposed budget for the ffscal year starting next July 1. The budget estimates will be sent to Congress Monday. However, he 'declared .that "government expenditures have -beert and must continue to be hejd to the lowest sale 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 currtttt ' year ending next June'.3ft while the number of .civilian federal employes has been reduMJrt from 3.750.000 to 2,000.000. Reaffirming his belief in the "soundness and promise" of it\e plan to help Europe restore its economy, the President declare^ that "the ability of free meh H, overcome hunger and despair wJUl be a moral stimulus to the entirs world." He held put the promise of help. ing nations elsewhere in wprkin* for "world tconomic recovtry 1 * * and said he will submit to'tip present session of Congrew "* tplr Continued 6n "Page 8 ,./.· S

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