The Courier News from Blytheville, Arkansas on July 30, 1954 · Page 1
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The Courier News from Blytheville, Arkansas · Page 1

Blytheville, Arkansas
Issue Date:
Friday, July 30, 1954
Page 1
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BLYTHEVILLE COURIER NEWS VOL. L—NO* 109 Blytheville Courier Blytheville Daily Newi Mississippi Valley Leader Blytheville Herald THE DOMINANT NEWSPAPER OP NORTHEAST ARKANSAS AND SOUTHEAST MISSOUBI • BLYTHEVILLE, ARKANSAS, FRIDAY, JULY 30, 1954 TWELVE PAGES Published Daily Except Sunday SINGLE COPY FIVE CENTS Ike Gets Tax Law Revision Demos, GOP Both Claim Political Gain WASHINGTON (AP)—Congress completed action last night on the first complete overhaul of the nation's tax laws in 75 years, and both Republicans and Democrats claimed they would profit more politically. Whatever the political effects may be in the coming campaign for control of Congress, the action sent to the White House for virtually certain approval the bill President Eisenhower had designated as the cornerstone of his 1954 program. Before a 61-26 vote in the Senate sent the bill to the President, Democrats seized a final chance to snipe at some provisions. Only three Republicans—Dworshak (Idaho), Langer (ND) and Williams (Del)—joined 22 Democrats and Sen. Morse (Ind-Ore) in voting "no." Supporters included 42 Republicans and 19 Democrats. Assorted Tax Cuts The' revision bill carries $1,363,000,000 in assorted tax cuts for individuals and corporations in its first year of operation, more in later years. It does not change major tax rates except to maintain the 52 per cent levy on corporation income which dropped to 47 per cent April 1 and is extended retroactively. Republicans hailed the bill as capping a T^-billion-dollar 1954 tax reduction program—biggest for any single year. This already has been used in GOP campaign material. Democrats interject here that two big boons to the taxpayer took effect automatically under a 1951 law enacted when their party controlled Congress. These include two big reductions which took effect Jan. 1—three billion dollars through a 10 -per cent personal income tax cut and two billions through expiration of the corporation excess profits tax. On April 1 various excise tax cuts totalling a billion dollars took effect. These were fought by the Treasury but pnthusiastically supported by Republican congressional leaders. Politically Helped Republicans also contend the big revision bill will be politically helpful to them because it contains benefits for such groups as retired persons, families with heavy medical expenses, mothers who must work to support their children, fathers with children in college who earn part of their way, and farmers with big soil conservation expenditures. GOP leaders from the President down argue the bill Will spur business by providing more funds for plant expansion and modernization through a wide variety of more liberal deductions for businesses. This will mean more jobs, they say. Democrats, claiming they will benefit, say the bill concentrates benefits for big corporations and the wealthy, but does little or nothing for the average little man. They tried in House and Senate to put in a general tax cut, but were beaten back on close votes. The minority centers its fire on a provision in the bill giving relief to stockholders on their dividend income. This provision was sharply watered down from the form in which the President first recommended it. But Democratic ora- See TAXES on Page 12 * # * ATTORNEY ORVAL FAU STRANGE BEDFELLOWS — Illustrating the strange, if momentary, bedfellows politics makes was the juxtaposition this morning of these two banners at Main and Broadway. A banner plugging- Orval Faubus, opposing Gov. Francis Cherry in the Aug. 10 runoff primary, was hoisted beneath a banner boosting Frank Snellgrove of Jonesboro, prosecuting attorney candidate. How- ever, Mr. Snellgrove today had withdrawn from his runoff race with Terry SheU, also of Jonesboro. Mr. Snellgrove said Cherry supporters, who also were backing him, had asked him to withdraw because they had their hands full without •'worrying about" another race. He added that he will campaign for Gov. Cherry. (Courier News Photo.) U. S. Atomic Arsenal Growing Rapidly; Superiority Assured Bv FRANK CAREY WASHINGTON (AP) — The nation's atomic arsenal is "growing rapidly in total numbers." the government said today and high-level action has been taken to assure continued U. S. superiority in A-bomb and H-bomb fields. The Atomic Energy Commission j deposited widely over the United States small amounts of radioactive debris, and minute quantities could be detected in some humans in this country, but the amounts were far less than required to pro- so told Congress today in its semiannual report which also said there had been record production of uranium from domestic sources in the last six months and a "sharp Snellgrove Quits; Faubus Says Cherry Acts Scared JONESBORO, Ark. (AP)—Frank Snellgrove believes it's more important that Gov. Cherry be returned to office than it is for him to be elected prosecuting attorney for the Second Judicial District. Snellgrove expressed his belief yesterday when he withdrew from the prosecuting attorney runoff even though he thinks he had "a good chance to win." — * The former candidate said his U.S. Seeks Allied Help ToKillRedPadeyPlan By JOHN M. HIGHTOWER WASHINGTON (AP) — The U. S. government is looking to Britain and France to knock the props from under a Russian proposal for talks later this year on a new European security system which would include the Red bloc. An initial exchange of reactions among Washington, London and Paris officials, authorities said today, indicates '.hey see eye to eye on this issue—despite evident Russian hopes that peace in Indochina might swing Western European opinion away from the United States position. U. S. authorities still think it possible the Soviet proposition may get a little more popular support than it did before the Geneva conference produced a peace agreement on Indochina. The Reds then gained an initiative in the cold war conflict, and their revival of the European proposal first advanced early this year was clearly an effort to use that initiative in the field of European a'iairs. American. British and French representatives will meet in two or three weeks to draft replies to the Kremlin note which they received last Saturday. These prob- abily will not be identical. U. S. officials argue that the Russian proposal for all the European nations to get together in one big- security system is a matter on which European governments can speak more properly and directly than this one. Then, too, the State Department wants to avoid the suggestion of pressing the European governments to take an unfavorable stand on this issue. The official position is it is up to them to make up their minds and to say what they think. However, the first three-way exchanges indicate agreement that what the Soviets are really aiming at is destruction of the projected European Defense Community,, on which action is supposed to be tyken in the French Assembly by mid-Auffust. EDC calls for the armament of West Germany as part of a six-nation army. Nicaragua Reinforces Border MANAGUA, Nicaragua W)—Nicaragua moved armored units up to her border with Costa Rica today as the government angrily charged that Costa Rican border guards had damaged a Nicaraguan patrol- plane with rifle fire. President Anastasio Somoza said a mile-long convoy of armored cars and tanks which he sent from Managua yesterday "was going to the border to defend Nicaragua's territory," The two Central American republics' long wrangle over border violations became tense this week as incidents and accusations mounted. Nicaraguan Foreign Minister Oscar Sevilla Sacasa declared yesterday that if Costa Rican President Jose Figueres "wants war, he will have it. The patience of our government is not unlimited." In its latest protest note, Nicaragua charged the aircraft was fired on while flying yesterday along the San Juan River, the boundary between the two countries. The electrical control system of the plane's lefi engine was reported damaged. Official reports said the plane was en route from Managua to the San Juan River Delta to pro- tent an infantry patrol. Numerous Benefits in New Tax Bill " WASHINGTON (AP)—Here are some of the ways you as an individual taxpayer can benefit through the big tax revision bill now on President Eisenhower's desk for almost certain signature: DIVIDEND INCOME—If you're a stockholder, you won't have to pay any tax at all on the first $50 of income in dividends. Furthermore, you can take 4 per cent of any dividend income above $50 and deduct that from your tax payment. MEDICAL EXPENSES — You may deduct medical expenses above 3 per cent of income, instead of 5 per cent as at present. But you must remember that from now on you may only deduct sums spent for drugs and medicines above l.,per cent of your income. Also, you can have a total medical deduction of $10,000 for your family: the limit has been $5,000. RETIREMENT INCOME—-You won't have the basic 20 per cent tax rate on the first $1,200 of retirement income received after you pass 65. If you're a retired government employe such as a teacher, fireman or policeman, you can get the benefit even though you're under 65. WORKING MOTHERS—If you nii'st work to support children under 12 or other dependents, and if your husband it incapacitated or if the combined income of the family is less than $4,500, you may deduct up to $600 spent for child C 3.1*6 SOIL CONSERVATION—If you're a farmer putting a lot of money into soil rebuilding, you may deduct these outlays up to 25 per cent of tour gross income. COLLEGE STUDENTS—If you have a child who is under 19 or is in college and has a job which pays him more than $600 a year, you may continue to list him as a dependent with a $600 exemption on your return if you pay half of his support. CHARITIES—You may deduct up to 30 per cent of your income for chax-itable contributions, instead of 20 as at present. INSTALLMENT BUYING—You may deduct the carrying charges on such purchases, even though they're not specifically stated as interest in the contract. HEAD OF HOUSEHOLD—If your husband or wife dies, you may continue for two years to get the full benefit of income splitting as on a joint return. HEALTH & ACCIDENT PLANS —If you miss work because of an illness or an injury, you are entitled to tax exemption on payments made to you by your em* pioyer, up to $100 a week, if they are issued under a regular health and accident plnn. The exemption does not apply in the first seven days of *n illness, unless you are hospitalized. DECLARATIONS ' OF ESTIMATED TAX—If you're married and have up'to S10.000 of income, practically all of it subject to withholding, you no longer need to file a declaration of estimated tax. RAPID DEPRECIATION — If you're a businessman or farmer, yov may use the new double declining balance method of quick depreciation on a plant or piece of equipment. This means that in the first year of life, you can write off twice the amount for depreciation now allowed; thus you can concentrate most of the write-off in the early years of use of the item. The accelerated depreciation plan will benefit chiefly corporations. They get other relief, too, including: More liberal treatment for research expenditures. Greater freedom to set.aside surpluses. The right to offset a loss against profits of two prior years instead of one as now. Elimination for utilities of the 2 per cent penalty tax on consolidated returns. Greatly expanded depletion allowances for mining companies. A cut-off date of April l. 1955, for the 52 per cent corporation tax m?. at which time it automr'. '".'1 i i drops to 47 per cent unless congress continues it again. supporters told him they could work more effectively for the governor's renomination without a prosecuting attorney's race to i "'worry with." Support for Cherry And Snellgrove said he is "throwing all the energy of my campaign into Gov. Cherry's bid for re-election." Latest Associated Press tabulations show Shell with 15,126 votes: Snellgrove, 7,404: Wilson, 5,677 and Hub Methvin, 4.541. Meanwhile, Cherry's run - off opponent, Orval Faubus, said today that Governor Cherry is running the race of a "sacred candidate." Referring to Cherry's charges that Faubus was a "McMath stooge," the '4-year-old Huntsville publisher-declared: "It is difficult for me to understand why a man running for a second term cannot run on his record. If I had all these things and a second term tradition in my favor I wouldn't even think of the other fellow—unless of course I was a scared candidate." Cherry charged in a newspaper advertisement that leaders of former Gov. Sid McMath's unsucces- ful campaign for U. S. senator were now working for Faubus. Faubus issued this counter statement: "I also have some leaders in my campaign who supported Governor Cherry two years ago." Faubus, who made a surprisingly strong showing in last Tuesday's voting, said that his assistant campaign manager, Roy Ritter, Springdale poultry producer, was a supporter of Cherry two years ago. Counter Statement Faubus also pointed out that Jim Bland, Walnut Ridge newspaper publisher, "supported Ike Murry in the first primary and Governor Cherry in the run-off" in 1952. Faubus added: "So, while some of Sid's friends are basically my friends, this is not the McMath organization in my camp. I also have some people who supported Sen. John McClellan against McMath in the senator's race, but I don't want to name them because I don't want it to appear I'm tying myself to Sen. McClellan's coat-tails." When asked about McMath's personal participation, Faubus replied: "I haven't heard from Sid. I have no intentions of hearing from him." Schedule Announced Faubus' Saturday schedule: Tuckerman, 10 a.m.: Newport, 2 p.m.: Bald Knob, 4:30 p.m.: and Searcy, 7:30 p.m. Faubus says he plans to spend Sunday at his Little Rock headquarters, but has speaking engagements scheduled at Bauxite and Benton Monday. Malvern, Arkadelphia, Texarkana and Hope are on his Tuesday schedule. Cherry opened his run-off campaign yesterday by taking part in the dedication ceremonies of a new link in U. S. Highway 79. The ceremony tool place at Pine Grove, four miles east of Clarendon. Opening of the new 20-mile strip completes an all-paved route from Washington, D. C., to Laredo, Mexico— a distance of 1,900 miles. Cherry joined Highway Commissioners Cecil Lynch of Pine Bluff, Dan Portis of Lepanto, Glenn Wallace .of Nashville and Miss Willie Lawson of Little "*ock in the ceremonies. rise" in the production of fissionable materials at lower unit costs. AEC reported the start of operation of "'a number of components" of its big plant at Savannah River, S.C., where materials for either A-bombs or H-bombs can be made. And it reported continued progress toward development of reactors for industrial nuclear power which it said may be produced economically in the foreseeable future, and "for naval and aircraft propulsion and other military requirements." Two More Planned The Commission reported the near completion of the atomic power plant to drive the Nautilus, the Navy's .first nuclear-powered submarine whose hull has been completed. A secc~i atomic sub is under construction and plans for early building of two more were announced yesterday by the Navy. "Paralleling fission weapon development since 1950," the Commission said, "there has been in progress a concerted development effort on thermonuclear weapons (hydrogen bombs). "In view of important development programs, a national policy decision was made to take every advantage of such progress to assure that the United States maintains' its superiority. "The President directed the Commission to continue to produce atomic weapons during 1954 consistent with this decision." Other highlights from the report: 1. AEC ha s developed a remote- control system for detecting rapidly radioactivity from continental atomic tests such as those conducted periodically in Nevada. The system automatically sends out radio broadcasts when triggered by radioactive particles, alerting control points miles away. "Furnace for Planes" 2. In the quest for a practical atomic engine for aircraft, an atomic "furnace" has been suspended from four 324-foot towers in order to test shielding requirements for the crew and equipment of such a plane. 3. The Pacific tests of last spring duce detectable injury. 4. Medical observations do not indicate any permanent harm to 31 servicemen in the test task force who were exposed to radiation as a result of a sudden wind shift at the- time of the March I blast. Of the 74 Marshall Islanders similarly •exposed, AEC said, their burns now are almost completely healed. Senate Rejects Part Of Foreign Aid Bill Nixon's Okay Of McCarthy Probe Cited Smith Seeks Inquiry To Replace Censure By JACK BELL WASHINGTON (AP) — Sen. H. Alexander Smith (R-NJ) today quoted Vice President Nixon as saying Smith is "'on the right track" with a proposal to investigate Sen. McCarthy (R- Wis) as a substitute for a move to censure McCarthy. Smith told reporters that if his substitute is defeated, however, "I would feel compelled" to vote for a resolution by Sen. Flanders (R-Vt) proposing to "condemn" McCarthy's rsd-huniiag tactics as chairman of the Senate Investigations subcommittee. As a substitute for the Flanders resolution. Smith has proposed WASHINGTON (AP) — The'Senate today overrode the administration and knocked out of the foreign aid bill a section authorizing the President to use funds to stimulate production of strategic materials abroad. Inside Today's Courier Hews , . . Yankees Can't Get Stcn/rel His 64lh Birthday Present on Time . . . Vic Raschi Is Best Against League's Best . . . Landy and Bannister to Compete in Canada Aug;. 7 ... Sports . . . Pases 6, and 7 ... . . . Ike's Tax Revision Flan . .. Kditorials . . . Page 4 ... . . •'••••>! Xcws ami Review . . . Piues 8 and 9 ... Coffee Cost Data Stirs Solons' Ire WASHINGTON tf) — Congressional critics of coffee prices renewed their call for stricter regulations today in the wake of a government report blaming recent increases on speculators and other artificial causes. Coffee traders and producers promptly denied it was their fault that the" nickel cup of Java is becoming extinct. The Federal Trade Commission reported yesterday the boost in average retail coffee prices—from 91 cents to SI.18 a pound between December and April—"cannot be explained" by the laws of supply and demand. It said one reason was speculation by both U.S. and Brazilian interests, but that price hikes also stemmed from skimpy coffee crop reports and from Brazil's action in raising its minimum coffee export price from 53 to 87 cents a pound July 1. And while the price spiral added less than a cent to the cost of a cup of coffee in American restaurants, it said, the customer's bill was upped from 5 to 10 cents and in many cases to 15. 20 and even 25 cents. It had this encouraging word: With production up and consumption dropping off, prospects are for "lower coffee prices in the future barring excessive crop damage and provided supply and demand are permitted freely to run their course." Sen. Gillette (D-Iowa), author of a bill to put the New York Coffee and Sugar Exchange under federal regulation, said in an interview today his amendment "would be a great help." Dentist to Open Office in Manila MANILA — Dr. Howard Nelson of Leachville will open dental offices in Manila early next month, according to Joe Hornberger, president of the Manila Lions Club, who IMIS instrumental in getting a dentist for this city. Dr. Nelson s offices will be located in the Gene Service Station building. A graduate of Leachville High School, Dr. Nelson attended the Uni- vcrsit'- -•" Kr"s?s C:t; He is the son of Mr. and Mr*. Gabe Nelson of LeachviU*. By a roll call vote of 49^0, the Senate adopted the amendment offered by Sen. Malone (R-Nev). Majority Leader. Knowland (R- Calif) had said he understood the Eisenhower administration opposed the amendment and felt the section in the $3,100,000,000 was desirable. Sen. Douglas CD-Ill) insisted on pinning Knowland down on that point before the vote. Douglas Wanted to know if Knowland was speaking" for himself or "1600 Pennsylvania Avenue" (the White House). Promotes Destruction Knowland replied he had. expressed what he understood to be the administration's position. ' Malone.^contended this action stimulates" production of critical materials in other areas of the world "promotes our own destruction." He said materials thus developed would not be available to this country in case of war. Knowland said the section was permissive, not mandatory, and was intended to meet situations where the domestic supply of strategic materials was inadequate. Earlier. Sen. Long (D-La) had criticized the foreign aid program as "just about the loosest giveaway ever drawn." Long, urging a slash of one-third in the authorization, said in an interview he would demand a roll- call vote on his move. Long claimed more than 30 votes for his proposal. Administration leaders voiced confidence they would defeat it and pass the bill. The Senate still has to act on a separate money bill. Long said the end of the Indochina fighting, to which this nation was contributing around a billion dollars yearly, justifies a cut in foreign aid this year. "When the fighting stopped we had some 500 million dollars worth of military equipment in the pipeline for Indochina and another 600 million dollars earmarked for there," he said. §9 Billion Unspent "Actually we need not provide a single dollar this year. There are more than nine billion dollars of past giveaways unspent, of which nearly three billion dollars is not See SENATE on Page 12 that the Senate create a special committee, investigate headed by Nixon, "the alleged good to or evil of so-called McCarthyism.". The committee would report to th« Senate early next year. Smith said he discussed the plan with Nixon this morning and "the vice president thinks I'm on the right track." "I asked Nixon, 'Did I embarrass you?' " "He said 'Not » bit.' " Smith said some senators have told him they would not support his substitute because it looked like "ducking the issue," regarded as politically explosive. "I'm ducking no issue." he continued. "If my resolution is defeated, I'm going to vote lor &• Flanders resolution." Would Feel "Compelled'* He said he would feel "com* jpelled" to do so. 'Tve been compelled, much to my regret, to criticize Joe McCarthy," Smith said. "I have urged him to work with the administration but he never seems to." Smith said a number of senators want to make it clear that "they are waiting to be counted" on the issue of McCarthy, and seem inclined to let the test be made on the Flanders resolution. He said if they prefer that "sudden death" approach to the problem, that will be all right with him. Sen. Flanders (R-Vt) said he regards as "still good" the prospect that the Senate eventually will „, .adopt his proposal to censure Mc- Before seeing Dulles, Rhee was j Carthy for what Flanders calls m . becoming conduct. But there was general agreement that a substantial number of senators would lika to avoid any showdown vote now on the politically explosive issue. Compromise Seen In this atmosphere there were indications Republican friends of Rhee Gives Up On China Plan ROK President Resigned to Lack Of U. S. Support WASHINGTON \fft — Syngman Rhee appeared resigned today to lack of U.S. support for his plan to attack Communist China now. but the fiery South Korean president still hoped to go home with assurance of American military and economic support. A White House statement was to be issued after- a final meeting between Rhee and Secretary of State Dulles this afternoon. It was expected to emphasize the coridal "family-style" atmosphere that marked talks during Rhee's five-day state visit .ending today. But it may not pinpoint specific agreements. to speak at George Washington University, his alma mater, and before the Overseas Writers Club. Rhee has been seeking a strengthening of his 20-division army by adding 15 to 20 reserve divisions as a national guard. He also wanted a larger say in the disposal of some 200 million dollars j McCaiS7ni"ay*co'me"up with some" a year in U.S. economic aid. After a dramatic appeal to Congress Wednesday for a "momentous decision" to attack China with a two-million-man Free Asian army backed by U.S. planes and ships. Rhee emerged from a meeting with President Eisenhower yesterday and told newsmen his call to arms had not been discussed. He seemed more subdued than heretofore. A State Department official said the China war point was not pressed during the talk with Eisenhower. compromise to shelve the matter at least until after the November elections for control of Congress. Sen. Knowland of California, the Republican leader, said he will open the way for debate on the Flanders proposal during today's session. He and Sen. Lyndon 3. Johnson of Texas, the Democratic leader, agreed in separate interviews lhat final disposition of the matter is likely to" be delayed until early next week. McCarthy remained publicly silent about Flanders' proposal, ex- See MCCARTHY on Page it M.C. Cook Sells Cleaning Firm To Hugh Caffey M. C. Cook, Jr., for the past eight years owner and manager of C. and W. Cleaners here, today announced the sale of the dry cleaning firm to Hugh Caffey of Savannah, Term. Mr. Caffey of Savannahcaifwydw Mr. Caffey has 10 years experience in the cleaning business and originally came from Jackson. Tenn. He and Mrs. Caffey and son, Gordon. 9. are making their home at; 1120 Hearn. Mr. Cook said today that hi* plans are indefinite. Weather THREATENS TO JUMP; SLIPS. FALLS — Arthur Bretton, 32, plunges five stories from the roof of an East Side Manhattan building to an areaway below. He was injured critically. New York police said the fall was accidental. They said Bretton had been threatening to jump, rejecting pleas of his wife and three priests, when he slipped from the parapet of the building's roof. This picture was macfc br *r«« l*nc« pbotof raphw Cbm Daly. (AP Wirephoto* ARKANSAS—Partly cloudy with widely scattered afternoon and evening showers and thundershowers in southwest this afternoon and Saturday. MISSOURI—Mostly clear through Saturday with little change in temperature; low tonight in 70s; high Saturday 95-105. Minimum this morning—T4. Maximum yesterday—$8. Sunrise tomorrow—3.-0&. Sunset today—7:04. Mean temperature (mldw»y betwftva high and low)—8«. Precipitation last M hour* *» 7 - M &. m. today—-Non*. Precipitation Jan. 1 *> tbta 36.3«. This Date Last Year Maximum yesterday—93. Minimum this morning—73. Precipitation January 1 to MJL

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