The Daily Messenger from Canandaigua, New York on January 14, 1948 · Page 1
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The Daily Messenger from Canandaigua, New York · Page 1

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Wednesday, January 14, 1948
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CANANDAIGUA REPOSITORY Founded 1797 CANANDA10JJA MESSENGER Founded 1802 THE DAILY MESSENGER Founded 1907 Established in 1797. Vol. 151. No. 11 COUNTY UPAPER Weather Mostly cloudy, and.-colder, with snow flurries .tonight; Thursday parity cloudy ' rather cold.. .. . , v CANANDAIGUA, N. Y:,. WEDNESDAY; JANUARY 14, 1938." "Single Copy/TiveTeiats " Lana ana lopping Arrive on uoast Speaks Dollar BwJjng Declares European Countries Nee : d ^DollarFunds for Normal'Trade WASHINGTON, UP;--Secretary of the Treasury Snyder today vigorously opposed requiring the 16 Marshall plan countries to use their dollar holdings in this country to help cover costs of the $6, 800,000,000 European aid program. "It "would "be folly" to force them to do so, the secretary told the senate foreign relations committee. Snyder said citizens of these countries had about $4,800,000,000 in dollar assets on last June 30, but he added that: It would be difficult to get cash readily on most of these assets as some a^ already pledged for loans; the Europeans need the lunds to cover their normal trade and financial operations; and then holdings already are below a "safe" amount needed to keep their own currencies steady. Part Loans Snv-der, explaining financial aspects of the Marshall plan foi European recovery in testimony calling on Congress to appiove it in the form, and amount laid down by President Truman, also said that: 1. Part of the United States j money should be provided as "grants m aid"--meaning gifts-and part in loans. The amount required to be repaid should be held down to the "borrowing country's capacity to repay in dollars." 2. Five per cent of the piogram funds should be set aside to guarantee private American firms U. S. dollars in exchange for foreign currencies they earn through investment in those countries. Pur- no.se is to attract private investment abroad. 3. Congress should permit the U. S. aid money to be spent on buying short supply goods for the Marshall plan countries in .Canada, Latin American and elsewhere, or in one Marshall plan country to buy goods for another one. Separate Agreements 4. Separate agreements will be lequired from each beneficiary country assuring steps will be taken to steady its currency. This would be done through a balanced budget, tax law changes and, at the proper time, devaluing inflated currencies to a point in line with their true buying power. 5. Each beneficiary country also will be required to set aside local currency in an amount equal to dollar "grants in aid" given by the U. S. and use it for reduction of its public debt unless the U. S. authorizes use for reconstruction or development purposes. 6. The United States should lend gold and dollars later, possibly in this year and "probably" next, to furnish the European countries with hard money reserves to bolster (he value of 1hcir own paper money and keep it steady. Actress Lan:i Turner anil her latest heart interest. Boh Topping, millionaire sportsman, step from a train at Pasadena, Calif., following their arrival from a -vacation at his Connecticut estate. (AP Wirephoto^ Pauley To Resign, Denies Stassen 'Smoked Him Out' WASHINGTON, Lf--Edwin W. Pauley today prepaxed to icsign from go\ eminent seivice with a statement Dec 13 " The Dec. 13 statement was hot advance denial that he was Jssued after a senate appiopria- tmoked out by Harold K Stossen's " u "- ouuv.um.iutn.i- .«...;»...,, -.1 donee that go\ eminent "insiders" havo made "money in commodities public needling of his iccord as a grain speculatoi The Califoima oil man, f01 mei | called Pauley as a witness " Democratic national committee j tieasurer and a close friend of i Denies Inside Dope Pauley said then he ne\er used Group Approves $4 to $6 Boost In Jobless Pay Governor's Recommendations Approved by labor-Industry Committee President Truman, announced t h a t , anj inside information in his trad- he is quitting as assistant to Sec- ' j ng and had begun to get out of letary of the Army Royall "some "-- '--· -- - · ' - - ' - ·· Bill Would Set Up Grievance Agency ALBANY, (IP)--Grievance machinery for state employes would be set up under a bi-parttsnn biH introduced today in the state legislature. The measure, backed by the State Civil Service association, is an outgrowth of the Condon-Wadlin law of 1947 outlawing strikes by public employes under penalty of dismissal. A public employment labor relations board of three members would be established to hear grievances of state workers and $100, 000 would be appropriated. Local governmental units would be empowered to form similar boards. Senator Thomas C. Desmond, Nevvburgh Republican, and Assemblyman Irwin D. Davidson, New- York city Democrat, introduced the legislation. Schine Theaters Buy Radio Station ~i~"' ,' WASHINGTON, OB--The communications commission today authorized transfer of control of Patroon Broadcasting Company, Inc., operating Standard Radio Station WPTR at Albany, N. Y., to Schine Cham Theaters, Inc. The transfer was from H. E. Blorigctt, as agent lor 10 stockholders, for a total consideration of $101,300. Today's Weather 8 A. M 14 11 A. M 16 2 P. M 17 Sun sets today 5:00; rises tomorrow 7:37: scts tomorrow 5:02; , p1 nnn, nw; fir*t r ( nnrtor, .fnn, 19, time this month " In a memorandum to the Dress distributed by the arm last night Pauley declared this is in accordance w i t h plans he made known soon after taking the job last Sept. 3. Thus Stassen, he said, cannot "claim credit for bringing about my resignation " Stassen Asked Resignation The statement came two dajs after Stassen, a candidate for the I Pauley said Republican Presidential nomina- Truman to "· the market as soon as he took the appointment under Rovall. He said he had counted on staying in the army department post only thiee to four months and "when I have finished the job I will leave; not before." Last, night Pauley said he had J learned that Stassen had "finally- found out" about the plan to quit. "Evidently Stassen has decided to make a new 'discovery,'" "Does a man who has under investigation t h a t he made approximately a million dollars (5932,703 to be exact) in personal profit, by speculating since the war in increased prices of food and comnioriifi^s. belong m ( h e position of assistant to the Secre- tarv of the Aimy for procurement and industrial mobilization 9 " Pauley said ho told a Washington ncwspapei last Septembei 16 t h a t he planned to stay in t h e aim} d e p a i l m e n t "for only 'three or four m o n t h s ' " and "T snul \ o i v much the same t h i n g in a public TKEASLKV KEPOKT WASHINGTON, (.'P'-Tho [OM- tion of I lie treasurv Jan. 12 Receipts. .S139,S(i2.367.7G: expenditures. S97.771,28708, balance, S2, 579,435.1-10.58: total debt. $256.331, 789,36982, inciease over previous day. ?3, !13.73 l.SS the public " Pauley added: "Meanwhile the significant point to Stassen's latest display of fiaudulence is the obvious e v i - dence that hr- is in i c t i e a l "When I f u s t accused him of utteung, undei oath, a senes of false statements concerning me, he pomtedlv evaded the issue. "So, since he has declined to 10- U t i n hefoie the senate committee! u n t i l .January 23--and since I doubt that he uiil retum even t h e n -- I t h i n k I may ask him some j more question'? f i o m t i m o to t u n e ! d u r i n g the mteum. The first one I is ,his. j "Do v o u still pietcnd, Mr Stassen. t h a t you have disclosed. 01 are able to disclose a n j t n m g j about my'commodity transactions] -- all of which have been cornplete- Iv- legal and ethical t h a t has not already been made known b me t o t h e f f - n a t e committee?" ALBANY, /P -- Governor De\\e\ s administration intends to increase unemployment insurance maximum benefits from 521 to $23 01 $27 a week and giant emploj- eis tax iebates estimated at more t h a n $100,000.000. Jn line w i t h the governor's le- commendations to the legislatuie in his annual message, the joint committee on labor and industry agreed yesteiday to boost top benefits to the jobless by $4 to S6 weekly and establish 'a .?900,000,000 ceiling on the unemployment m- suiancf ieser\e fund. The bi-partisan committee disagreed on proposals of organized labor to pro\ ide dependency allowances Governor Dewey and some Republican legislative leaders are opposed to such allowances. Legislation to implement the committee's views will be intio- duced shortly after the group determines whether to boost the benefits for the jobless by $4, $5 or !6 a week. Duration Unchanged No change is contemplated in the piesent minimum of $10. Duration of all benefit payments would be left at 26 weeks. Placing a $900,000,000 ceiling on the lesene fund would assure em- plovers of continued merit rebates, which are based on. stability of employment. Piesent law requires that the fund be kept at three and one-half times the previous year's tax contributions. Any amount over that sum is refunded to employers. They earned rebates of 5145,000,000 in 1947 and will receive them in the form of tax creaits mis yeai. The reserve fund now totals approximately 31,065,000,000. If a 5900,000,000 ceiling were imposed it would leave a .$1,065,000 surplus. Would Be Returned An undetermined portion of tin's sum would be required to grant benefits to an increased number of unemployed and to finance,the boost in maximum benefits. It was estimated unofficially that the remaining amount would be more than $100,000,000, which would be returned to employers in 1949. Proposals to giant benefits to unemployed persons who are ill piobably will be shelved at this session of the legislature. In order to qualify for unemployment insurance benefits under the present law, a person must be able to take a job. Republican legislative leaders conferred yesterday with Governor Dewey on the 19-48-49 budget, which is expected to reach an all- time high of 5750,000,000. It will be submitted to the legislature be- foie Feb. 1 Argument on Rail Case Set on Feb. 27 WASHINGTON, UP) -- The Interstate Commerce commission today called for final oral argument Feb. 27 on !he proposed interlocking directorate for the New York Central, and the Chesapeake and Ohio Railroad companies. The case involves the applications of President Robert J. Bowman and board chairman Robert R. Young of Chesapeake to take seats on the central board and exercise the voting prh ileges of ·300.000 shares of central stock without giving up their C. O. positions. Brazilian Communists Denounce Vote Love Finds a ^ way American tconomy In Peril OF Slump President Asserts Chief Executive Asks Price, Wage and 'Rationing. Authority, Calls Upon Business to Cut Prices, Urges Labor to Be ^Moderate' in Wage Demands, Holds Ground on Taxes - Edward Billings slips ring on finger of Barbara Grove in. wedding at Dunellen, N. J., Methodist church after couple went through two automobile accidents and four days of red tape in long, successful pursuit of wedding license. . (AP Wirephoto) Larger Air Forc^ A^ked By Truman's Commission Communist deputies wave their hands in Brazil's Chamber of Deputies at Rio lc Janeiro, denouncing measure passed by the Chamber and sipned by President Eurico Dutra removing all Communists fron) olw'livo po«1s throughout tl|f tciiitm, WASHINGTON, /Ti--President Truman's air policy commission said today the government should add billions of dollars to air power spending estimates to create a force "capaWe of dealing with a possible atomic attack on this country" by Jan. 1,' 1953. A report by the five-man board planned would be "inadequate" even for the intervening five years. It would be "hopelessly wanting,'' the report said, for the later period when it should be assumed that "other natons will ihave atomic weapons in quantity and the equipment to deliver them in a sustained attack on the United States mainland." 70 Air Groups The commision said plans should be expanded all along the line to call for: 1. An air force of 70 groups instead of the 55 groups now blueprinted. 2. Doubling the present total of 3,500 first line combat aircraft by the end of 1949. 3. A §1,300,000,000 (billion) increase to bring air force spending to 54,150,000,000 for the 1948 calendar year and to 93,450,000,000 foi next year. ·I. An additional ? 192.000,000 above budget estimates to modernize the navy's air arm this yeai and 5310,000,000 more for the same purpose in 1940. Phone Company Asks Rate Hike By Sterling F. Green I WASHINGTON. OP) -- President Tiuman declared today that ! American prosperity is riding a "'.vave of inflation" tcv.'ard the peril of a "serious" business slump. Keying his second annual economic report to a renewed plea for legislative power to cope with soaring prices, the chief executive told the Congress: Republican-controlled "We believ e," ' the commission said, "that the United States will be secure in- an absolute sense only if -the institution of war itself is abolished under a regime of law." Meanwhile its final 145-page study urged a "double-barreled pol- icv" of attemutine to achieve world peace'through_-the--United .Nations j while preparing-to Qefend ourselves if war should come. Spend More To achieve- this goal, the commission said, there must be "a reversal of our traditional attitudes toward armaments and national sovereignty." The nation must spend more and more for its military establishment because "self- preservation cdmes ahead of economy.". The commission, urged an immediate start on expansion of the. air force with modern equipment, asserting "we have no breathing space in which we do not need air power." The ready-to-fight, 70-group air force recommended by the commission would have 6',869 first line aircraft in a total of-12,400 modern planes by Dec. 31, 1949.- There also would be 22 special squadrons, 27 national guard air groups and 34 groups of air reserve. In- reserve- would be 8,100 modern warplanes by the "target date"~dubbed "a-day"--of Jan- 1, 1953. The naval arm "was described as adequate in size, but needing modem aircraft replacements. "The American people are keenly awaie that inflation is the dominant problem in our'affairs." Mr. Truman used urgent words in demanding once again'the full ten-piece kit of anti-inflation tools which the lawmakers refused him during last fall's special session. He asserted that 'standby price, wage and rationing authority are; "needed, needed badly, and needed promptly." Asks Price Cuts In addition to congressional action, the president called upon business to cut prices wherever possible, "foregoing a quick and French Reds Resume Fight In Assembly dangerous excess profit in favor of long-run stability." And he urged labor to be "moderate" in its third round wage'de-^ mands. Nor did he yield any ground'on taxes. - * He insisted that the $7,500,000000 treasury surplus now in sight for next June 30 must be used to lower the national debt,"-not cut" tax rates as the Republicans ar.e-~ determined to do. ""__ And Mr. Truman repeated his" proposal for a $4,0 a person -"cost of living" income tax cut "tcTbe* made up by higher taxes on corp-i orations... -. ' - » . . - « « After reciting lacord-breaking, gains during 194.7- in nearly every, phase of economic' ·"^activity, ±ne~; chief executive forecast -' r ah6th"er* year of splendid achievement." ~' But he took alarm as well as- pride-in the advances. ~~ "Unless we as a nation show ability: to impose restraints upon ourselves and to utilize the ma.-,, chinery of our representative government to devise well-considered- regulatory measures, we stand in,,' great danger that runaway prices, over-extended credit "and unbal-,. anced developments-'will' lead. to an economic recess'ionr "We cannot he sure that such a recession would not be severe.- and recovery slow and painful.-". Mr,. Truman.-.ad,desh "Whea .an.' PARIS, UP) -- Communists resumed a bitter fight today for the vice-presidency of the French na-, .,, , __, ,, , - ,, tional assembly, charging that at- WI "? destructive force." _ . " _ · r Phj-» .. J-lrtJ-V»^rt»VTt.rt ·WlYUfc.W no way of .predicting w?hen it 'w break of its 'own lifebrU One "can* be certain that, if penmttedr ow " *"»** wm to tempts to deprive the largest single party in the assembly of that post would be unconstitutional. Marcel Cachin, the Communist interim chairman of the assembly who suspended the session -yesterday when a majority of the de- The - economic report, last" of three major White House messages to the new -session of "Congress, set these national goals " : for 1948: . - _*·} l."A three per cent gain in pjp- duction. Last years'target oi,live per cent was narr"owJx---misse^-, ^ cent * goods -- waa * puties attempted to deprive the i t ^ * out but ieWer service^ Communists of the vice-presi- j such medical, laundry and'the dency, reconvened its i eorganiza- ! tion- meeting-.- Fear had -beea expressed that he might refuse to do so. The. Communists have threatened a boycott of all assembly officers. 2. Jo~bs for : 59iOOO,000~.as-a yearlong average: -This, .is IjOTJOjOpO above the 1947 figure even tijp'ugh, June'^peak topped^ oiucers. , so-called "full empIoymenttl'-.goM- .The session yesterday had ended rtf c/i/vvirvin ,VKC: - :-*?=*;n +,ir.TM~;i noT,i,f;«« oKTM,^. ,.,,,,,, or OU,UUU,UUU JO0S. . -- . --- -, in turmoil. Deputies shouted; sang and engaged in fist fights. The meeting ua^ suspended bj turning out the lights after non-Communist deputies refused to leave. Non-Communists have asked France's Socialist President, Vincent Auiiol, to help them in their dispute over the division of offices in the more powerful of France's two legislative houses. 27 Survivors of Bjirned Transport Land Alter Exhausting Sea Rescue ROCHESTER. CP'--New late schedules to provide an estimated $2,000.000 (millions) increase an- ruially in revenues -'.ore asked today 03 the Rochester Telephone corporation. John W. Morrison, coiporation . president, announced that the pro- ' funeral' transport Joseph V. Con- posed increase;,, ranging as high a s ! aioll '- wl ?ich nearly became their 30 per cent, had been filed with the · death sm P far at sea - Iand fd to- - - - - day, three of them injured, and HALIFAX, N. S., iJP--Tvv entj se\ en survivors of the burned army Public Service commission. Morrison cited what he termed "steeply mounting costs for construction, mateiials and .supplies" in asking for 1ho increases w h i c h he said \\ould be the first since 1923. e.xcepi for a. "comparatively minor increase in 1937 to cover a special lax." He said operating expenses had risen 86.2 per cent in the past eight years, while revenue had increased only 61.4 per cent. The rates would bwomo effective Febiuary 16 i- r «rant°d by the PSC. The proposed increases: Business telephones up S2 to 56 a month for 80 local calls, with boosts up to three fourths of a cent a call theieafler. Message rate icsidence telephones up $1 to S3 per month for 80 local messages. Flat rate single lino residence telephones up $1.15 to §6 a month. Flat rate residence two party lines up §1.15 to 55. Flat rate residence foui-parly linos un )0 oonl.s to SI. His message, the first full eyewitness account of Monday night's rescue to reach here, came last night as the Union Victory was steaming toward Halifax, Nova Scotia, with the 27 survivors. the others still worn from an ex-1 Captain Ober of the rescue hausting rescue alter 12 hours exposure in the wintry Atlantic One crewman was a stretcher case as the rescued came ashoie I from the Black Diamond line i freighter Union Victory which j picked them out of lifeboats after I flames swept the transport 900 j miles east of New- York early Mon| day. j The Connolly, which returned j the first war dead from Europe, i uas en route to Antwerp w i t h a i crew of 45 and one passengei and a cargo of 6,445 empty caskets destined for the homecoming of moi c soldier dead. Nineteen other survivors were saved by the Gen. R. E. Callan and were scheduled to tiavel to Bremerhaven. Capt. Ben A. Bostelman of Brooklyn, N. Y., master of the Connolly, said on coming ashore that the fne started from oil in the engine room. "The crew battled the firo furiously before I gave the abandon ship signal," Capt. Bostelman said. The men had a close call with death, Capt. G. Ober of the Black INJURED FATALLY BUFFALO, W;--Harry Henry, 29, East Concord, was injured f a - ) D i a m o n d j inc freighter Union Vic- lally when a milk tiuck he was tory 1o i d tnc Associated Press in duving collided with a coal truck near here yesterday. KILLED IN ACCIDENT WAUSEON, O., UP)--Robert E. Manlan, 40, an employe' of the Bath, N. Y., veterans hospital, was killed in a truck-autombile acci- rlmt nw horo 1,1st nifthf. a radio account of · the rescue of all hands of the U. S. army transport Joseph V. Connolly*' The 27 men' his ship rescued were so 'worn out af,ter their battle with rain, hail," cold and waves that they could -hardly climb aboard the freiRhtan 'Cnpt. Ober freighter radioed that after receiving a distress call from the funeral ship, the Union Victory reached the reported location but he could not sec the blazing ship oi its lifeboats. "A U. S. army plane searching the area notified us they had sighted the Connolly and the survivors drifting hopelessly 32 miles away," he said. "We proceeded to the position through heavy seas and hail storms to get a lifeboat or ;,urvnors aboard. "The first boat of survivors were hardly able to climb tne ladder aboard Hie 'rescue vessel, because of fatigue and the heavy seas pounding the boat alongside of the vessel. "Two injured men in the lifeboat had to be brought aboard in stretcher baskets under this hazardous condition. Darkness was setting in. We maneuvered to pick up the other boats of survivors. The second boat was alongside when another rescue vessel (the Gen. R. E. Callan) came upon the scene, '"I1ic other vessel managed to pick up the other two boats of survivors. We were very fortunate to get survivors aboard without the loss of any life in these hazardous rough seas and conditipns/- "The injured survivwa" were given first aid treatment and the other survivors were made comfortable, and we are now steaming S. The start of a broad social, public welfare, resources conservation and industrial development- program designed to'immanize.rtirei nation from "periodic depressions'5 and to provide- Ame.ricans_ with, ' "richer and more More -Income - ' : _r| More income -for consumers- wdfl- be needed, Mr. Truman said, -to- keep production up when exports fall off, when credits shrinks, and when savings are reduced, anij- "more consumer income tnust be accompanied by better income"dis» tribution." He continued: · ' · "Within ten years, maximufn employment will mean W 000,000 jobs or more. J "To raise the individual to -the highest level of productivity arutT to provide outlet for the increasing part of the labor force which -techV nological changes may displace from the mass production "Industries, we need improved services in education, health and social security." Going over again much of the ground he covered 'in his state- o£ the Union message a week "ago and his budget- message last Mon? day, the president called for federal aid for elementary and secondary education, prepaid healtft insurance, andean -increase in the payments and coverage of social security, botK -old-age and jobless pay benefits, - - . -' . ." ~ Speaking in terms of ten-year goals, Mr. Trdman proposed improved soil management on half the nation's crop and pasture-'laird, more dams for flood control and power, a doubling of the sustained timber yield,' · deyelopment . anJ stockpiling of strategic materteK and the industrial*"tlevcloprncnt 6t "retarded" regions. Increase Output' . "We should within ten years be able to increase our annual national output by 35 per '·ent,* the president said. But he declare^ that business plants and equipment need expansion-- cspecialfy, he said, in- the steel, oil, coke, ami- electrical industries. · Farm policy, he asserted, should aim at a 10 per cent increase in agricultural output in the decad* ahead through soil conservation, the use of three, times in«i*y. tractors as before the war, federal price supports, and other,

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