Alton Evening Telegraph from Alton, Illinois on January 9, 1950 · Page 1
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January 9, 1950

Alton Evening Telegraph from Alton, Illinois · Page 1

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Monday, January 9, 1950
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ALTON EVENING TELEGRAPH M «nbtr •! The AtwclatH PNM. 5c Per Copy, Vol. CXIV, No. 304 ALTON, ILL., MONDAY, JANUARY 9,1950 Bstablifthtd JtttMty If, 1IM. Woman and 2 Boys Injured in Sled Mishaps Rain Forecast, May Help Clear Sleet From Occasional rain that may help to wash remaining gleet and Ice from Alton streets la predicted for tonight or Tuesday, but the Weather Bureau promises a continuance of the present mild .weather for at least another day with lowest temperatures well above freezing point. Thermometer readings In the middle 50's were indicated for both today and Tues day, with low tomorrow morning about 45 degrees. Coasting continued a popular sport for -children of the community on Sunday. Three sledding mishaps were reported, but no Injury cases from skidding cars or traffic collisions. Injured severely in a coasting mishap about 9:15 p.m. Saturday is John J. Wyatt, 16, of 2528 Brown, a Telegraph carrier, who suffered extensive facial lacerations when his sled collided with a barbed wire fence In the Rock Spring Country club tract. He was moved in the Streeper ambulance to Alton Memorial Hospital. Wyatt, a son of Mrs. Pearl M. Sherwood, carried a route for the Wilson Agency in and about Washington avenue area in Upper Alton. He is said to have been coasting with a group of four youths when the mishap occurred. Ronnie Ballinger, another newspaper carrier, called the ambulance, then notified the injured boy's mother so she could go to the hospital to attend him. Donald Burris, 13, of 755 Park drive suffered a minor leg injury at 12:30 p.m. Sunday when his sled collided with an automobile that Truman Lee Cummings of 509 Porter had parked on Joesting at Pearl. Police took the boy to a hospital for emergency attention. Mrs. J. Parrish of 1808 Washington received emergency treat' ment at St. Joseph's Hospital at 6:30 p.m. Sunday, She was said to have incurred a leg injury when pulling a sled. Series of Accidents Icy conditions late Saturday afternoon were the cause of a series of motorvehicle mishaps, one of which was notable from a spectacular standpoint, another because of the "quantity" of automobile* involved. No one was injured. Central and Virginia was the ccene of concurrent accidents at 4:10 p. m. Police fofMrthat a truck driven south In Central by Sylvester Miller, "52, of 1617 Maupin ,a i chauffeur, had gone Into a skid at the intersection, sliding off the pavement to the west to crash under and through a billboard. The driver escaped unhurt, but the front end of his truck was damaged, and advertising bulletin board was wrecked to an extent that Gallaway Outdoor Advertising Co., the owner, estimated repairs at ,$100. Persons at the scene said that the billboard apparently halted the skidding truck just in time to prevent it continuing down a steep embankment. Listed at the same time by the police was another crash at Central and Virginia in which a coach Southbound in Central skidded off the pavement against a parked sedan. Driver of the coach was Jacob Hagen, Jr., of 2419 Birch. The parked car was identified as property of Henry Bachman of Godfrey. Responding to a call (torn Col- •ege and Worden about 5:40 p. m., policemen found that a collision leries apparently had involved live cars. An initial accident re- Suited in a call for a towcar, it teas learned. Everett Jackson of Shady Haven Terrace Park, had •topped at the intersection where • towcar was crossing College. A. r. Lambkin of Cottage Hills halted his sedan to the rear of Jack- Jon's car. Then a .station wagon Jriven by Holland Wiegand of 2600 Grandvlew slid against Lambkin's ledan, and, before the bumping ind sliding concluded, a car of boss Robertson of College, fifth <in the line, became involved. Reported later was a collision at 5 ». m. at the same corner in which i sedan driven by H. W. Gelzlnnls If 800 Milton was bumped by a Iklddlng car of of an out-of-town Motorist. Police had reports of seven tral- Ac mishaps Saturday; .only three kn Sunday. Capricious Mercury After » day of thawing that re- hoved much of the ice and sleet (rom the city streets Sunday, a peak dip in the temperature early K the evening made it necessary r the streets department crews iO spread more cinders. The thermometer at the Telegraph build- fig shows temperature remained ibove freezing point aftr 10 a. m. lunday. By 3 p. m. Sunday, the hercury mounted to 41, the day's op. But by 8 p. m., the reading lell back to 36, then started anoth- tr climb to 33 by 3 a. m. today. Although the early evening lownturn failed to produce an air •mperature under 36 downtown, rtotorists found ice forming in 4ush on some of the hills at high* >r elevations. Police began to re- Mve calls for cinders early, 5 p. h one of the habard spots beinc iht College slope near Rock Iprlng park where several cars tad skidding difficulties. •tevetUMMi Inspects Flood SPRINGFIELD, Tan. 9. lift— Gov kevenson left by airplane today or an inspection tour of flood trlcken areas In southeastern nil lots. The governor, and a party hcludlng Chief Harry I. Curtis of lie state highway police, planned 0 land »t tht Mt. Carmel airport .nd travel from there by automo- Sit and boat, Daly Won't Be Candidate for Probate Judge EDWARDSVILLE, Jan. 9.—Probate Judge Anthony W. Daly, Alton, announced today he will not seek re-election and plans to return to a'ctlve law practice at the end of his present term, which expires next December. The announcement came as a complete surprise to Judge Daly's many friends, who had taken it for granted he would seek re-nomlna- tlon and election again this year to the probate bench, on which he has served continuously since December, 1942. In a statement announcing his decision, Judge Daly said he desired to resume private law practice and therefore will not be a candidate for re-elctlon to the pro- Continued on Page H, Col. 4. Senators and Price Reply to Coal Telegrams Two Illinois senators and Congressman Melvin Price have advised the Greater Alton Association of Commerce that they are interesting themselves In the local coal situation. This afternoon the traffic committee of the association of which Al Ernst is chairman, will discuss the coal situation in conjunction with coal freight rates. In replay to a telegram sent by the association Friday, Senator Scott W. Lucas wired that he was immediately taking the matter up with proper officials. This morning the offices of the association received a communication from Senator Paul iH. Douglas, and Congressman Price advising like action. Senator Douglas wrote: "As a result of three-day operation there Is considerable doubt that an emergency imperiling the national health or safety yet exists within the meaning of the Taft-Hartley law. It is my understanding that the three-day work week will be resumed in the Illinois mines where a complete work stoppage has recently existed. You can help the Bureau of Mines in determining the question of a national emergency, however, by forwarding full data on the extent of shortages, stock piles and deliveries in tht past month." "•' The senator also said "It seems to me that the basic necessity is for the parties to come together and negotiate seriously in an effort to reach agreement. Even if the Taft-Hartly law were invoked and a court issued an injunction, its maximum duration is JO days, after which the country s in the same situation, necessitating the making of an agreement ay the parties themselves, if sii.'.- ilar stoppages are to be avoided." Congressman Price wrote "I am referring your telegram to the National Labor Relations Board, which, I understand, has been petitioned in regard to this matter." With a meeting of the traffic committee set for today noon, C. J. Schlosser, president of. the GAAC, advised he was asking the committee to look into the coal situation. A survey of Alton coal dealers this morning found hand-fired coal on hand in considerable quantities. Stoker coal, however, was scarce with some dealers having none and others trucking in small quantities from Illinois mines. One dealer, however, pointed out that the short life of the cold weather had helped the coal 'situation and if the present weather continues, with the Illinois miners returning to work, the coal shortage may be alleviated or erased soon. St. Joseph's and Memorial on Approved List Alton Hospitals Meet Re* quirements of College of Surgeons Alton Memorial and St. Joseph's Hospitals again have been «p proved by the American College of Surgeons for the year of 1949, according to a list of approved hospitals released by Dr. Malcolm T. MacEachern, director. The announcement came at conclusion of the annual survey conducted by the College of Surgeons under Its hospital standardization program. In addition to meeting the fundamental principles necessary for approval of a hospital by the American College of Surgeons St. Joseph's and Alton Memorial were approved for residencies or.fellow- ships by the council on medical education and hospitals, .American Medical Association, and for schools of nursing accredited hy the state board of nurse examiners. Wood River Township Hospital, in operation only since Aug. 1, was not subject to the recent survey, which stipulates that a hospital be In operation at least nine months before examination of its clinical records. Arthur Winston, superintendent, expressed confidence that the Wood River hospital will meet with no serious objections when examined. The survey list in 1949 included 3998 hospitals of 25 or more beds, Continued on Pace IS, Col. 5. Busline Offers 3 Propositions To Rent Depot Brown Motor Lines, which last July applied to City Council for a lease on the old "union depot," where it maintains a waiting room, has transmitted to Mayor Linkogle, the City Council, and the council's real estate committee a letter offering three propositions under which it would rent the premises, which are city property. The letter, signed by the bus line president, W. C. Myers, offers in connection with each of the leasing proposals that "so long as space re mains available" It would make space available in the building to other bus or transportation lines at the usual and customary charges for terminal facilities. This special feature of the leasing offers, it appears, is in response to the urging of East End Improvement Association and other groups that the old union station should be a "union bus terminal" for the greater convenience of the public. Brown Motor Lines offers to lease the building for five years at $250 a month, if the city makes certain improvements on the building; or to lease at $125 a month for 10 to 15 years, with lesser Improvements, giving as added com' pensation 20 percent of its collections from any sub-leases (excepting terminal facilities.) Thirdly, the company offers to lease the building "as is" at $1000 a year and 20 percent of sub-rentals collected excepting on terminal facilities. Myers, recently notified by City Council that interim rent pending a lease on quarters now used in the old depot by Brown Lines would be $250 a month, asks in his letter for quick and definite action on his present proposals. "It is not the desire of the Brown Motor Lines to use the premises after Jan. 13 unless some Continued on Page IS, Col. 6. 7 Foxes Bagged in Two Forays By 70 Hunters in Godfrey Area (Picture on Page 5) A group of nearly 70 hunters worked four areas In Godfrey Township Saturday and bagged seven foxes in morning and afternoon hunting. Another hunt is planned for Saturday, Jan. 21. Saturday morning drives got underway about 9 when nearly 70 hunters registered at the Godfrey civic center, formerly the old airport hanger. The group worked wo areas during the morning, the first north and east of the South Branch School; the second north of the road leading to the Onlzed Club Grounds and south of Route 67. Saturday morning's bag was five foxes. After returning to the Civic' Center where women of the township association had prepared lunch, the hunters started out again, going In a northeasterly direction toward Brighton, working two areas to the West of Route 111 and south of the Clearvlew tavern. The group picked up two more foxes In this afternoon session and reported that a third was shot but apparently was able to slink away Into the underbrush for concealment. Not All fer Fw It became apparent that these Hunts are purposeful and well or- ganised. Many Godfrey Township farmers have reported • steadily Increasing number of missing chickens and of late U was reported that something had even been killing some young pigs, The fox's normal diet Includes rabbit and quail, but thai* appears to F be an increasing number of foxes and they have had to make the raids on the farms of the community. Saturday's drive was headed by Knloe Waters of Godfrey who was assisted by ten captains familiar with the territory. The drive started with the hunters forming either a circle or square around the area. When the square formation was used, the younger men were given positions at the corners for they would have more territory to cover. The hunters moved toward a center point and each attempted to keep within voice range of the man next In line at all time. The Ice and snow gave the hunters trouble In some sectors Saturday, making'some glades and gullies'difficult to travel. However, the same Ice and snow made visibility greater and U was easier to spot the animals. After, the fox was surrounded It was difficult to report which shot killed the animal. Several of the foxes were spotted In the open fields sunning themselves, wllh clumps'of grass or similar growth for concealment The fox will move away from his den which U usually found in a thicket and will not lead the hunters anywhere near that spot unless he feels sure that he can effect an escape. FOXM Were Foxy > Several of the hunters believe that they were outsmarted by some foxes which were able to get GMttmia* an P«f• a, Cat §• 16 Hand-Book Charges Filed; 2 on 'Bingoes 9 EDWARDSVILLE, Jan. 9. (Special)—Sixteen Informations charging gambling by operation of race bet handbooks, and two charging gambling by distribution of punch boards and ,bingo trees, were filed in County Court today by State's Attorney Lewis. Asked why none of the informa- tions charged operation of dice games, Lewis said he had been informed no dice games are run nlng In the county. Those charged with operating race books included George Bauer, Harold Schreiber and Peter G. Mehilos of Alton and John Wil- hlte of Wood River. The two charged with distributing punch- boards and bingo trees were Bert Heydrick of Alton and William Davis of Edwardsville. CAAC Plans 'Education'On Library Issue Civic, service, and educational organizations of the city are starting to Interest themselves in the oittcdme of the library "straw" referendum which will be held Saturday, Jan. 21, in 27 city polling places, it was announced today by Frank H. King, executive chairman of the Greater Alton Association of Commerce civic improvements department- Many questions are being asked about this issue, he said, but the real question before the voters Is "whether or not they really want to bring Alton up to date and have a permanent free public library and reading room. The Association of Commerce has brought the library question to a head by giving our people the opportunity to decide what they want for their city in this respect. We cannot do the voting for them and if they either refuse to take time out to express their desires or vote against the library, that is for them to decide," said King. "The GAAC is in favor of seeing a library established in the city so that all citizens can have at their disposal the best reading and reference library possible, thereby adding to the educational, cultural and rerreatlonal facilities of the city. It has been repeatedly pointed out that through Illinois towns and cities of 5000 population and less have libraries. Every city in the state of any size whatever has extensive library facilities and the sponsors of the Alton referendum feel that every civic-minded citizen should vote for the library and urge his neighbors to do likewise." • During the next two weeks the civic affairs committee of the Association of Commerce will assign workers to polling places and also will carry on an educational campaign to focus attention on the "need for a free public library and reading for Alton," the announcement said. Weekend Fires Take 63 Lives; Many Injured By THE ASSOCIATED PRESS Sixty-three persons died in a series of weekend fires in several states and Canada. More than a dozen other persons were injured and more than a score 1 left homeless. Sixteen of the dead were children. The most horrible conflagration of all was in the psychiatric building of Mercy Hospital, Davenport, la., where 40 women died. Screaming patients perished behind barred windows as the 81- year-old mental ward building was swept by flames early Saturday. . Officials said 38 patients and one graduate nurse died in the fire. Another patient died later in a hospital. Twenty-four persons were saved. Cause of the fire was not known. In Maine, the state's worst fire in four years killed six children and resulted in injuries to five adults. The fire destroyed the home of Mrs. Graop Jones, a widow, in Medway.. Her five sons, ranging in age from 2 to 15 years, and her 10-month-old granddaughter died In the flames, the blaze was blamed on the accidental splashing of gasoline on a stove. In another Iowa fire—at Fort Dodge—four persons perished and three others were injured when A two-family house was destroyed. Those who died were Mrs. James Spitler, 29; her two children, Joyce 11, and Danny 9, and a baby sitter, Mrs. Ann Lehman, about 34. Badly Injured were James Spitler, ?'; James Spider jr., 6, and Mrs. Lehman's daughter, Caroline, 7. Origin of the blaze was not determined immediately. A fire in a house st Duhamei, Quebec, Canada, 75 miles northeast of Ottawa, killed four children. Near Fulton, N. V., two high school girls were burned to death when fire destroyed a home. In Cleveland, two women were killed in an explosion and fire caused when another tenant of the rooming house where they lived lighted s match to check on s lesk in his gas heater. t 43.000 Miners Strike; Illinois Stoppage Ends Lewis DeiiouncesDemands For Government Intervention Rr THE ASSOCIATE PRESS John L. Lewis spoke out today against demands for government. action which he said would "oppress the mine workers and cripple their union" as about 43,000 soft coal diggers' struck today. Steel companies and one giant mining company were targets of the second work stoppage in two weeks by United Mine Workers. Illinois United Mine Workers, idle last week, returned to their jobs. Without explanation from either UMW officials or rank and file, miners refused to enter many pits in Pennsylvania, West Virginia, Ohio, Kentucky, Alabama and Virginia. 30,000 Idle in Pennsylvania Soft coal miners In western Pennsylvania led the parade. More than 20,000 are idle there In 36 mines which have a total productive capacity of 111,000 tons a day. Lewis denounced Senator Taft for urging President Truman to go into court under the Taft-Hartley Act seeking to force miners to work five days a week instead of three. He said Taft asked the President "to herd the coal miners into the lethal gas chamber of the 'infamous slave statute." The UMW chief also criticized Robert Denham, general counsel of the National Labor Relations Board, who is expected to decide this week whether to seek a court order against the three-day week in the mines under a Taft-Hartley section. He called Denham a "hatchet man for. the hi-profit gang." Lewis issued his statement as a group of Midwest legislators agreed to try to push a resolution through Congress calling on the President to declare a national coal emergency. A half dozen steel companies and the Pittsburgh Consolidation Coal Co., reported their mines were forced to close today. 12,000 Quit In Ohio Practically all the 12,000 UMW miners in eastern Ohio were staying away from work. In Kentucky, about 1200 idle miners were counted. Only one Pittsburgh Consolidation operation was turning out coal. Mines operated by U. S. Steel and Republic Steel Corp., were closed. ' Five thousand miners stopped work in steel company pits in Alabama. In Ohio, UMW officials declined comment, but in Pittsburgh, a union' chieftain said the walkout was news to him. President John P. Busarello of the United Mine Workers District 5 said: "You're telling me something I hadn't hard about. No strike has been ordered. If one had been, I certainly would know about it." Miners gave no reason for not working but a sign posted at a Rwesville, W. Va., mine said: "No contract, no work." UMW President John L. Lewis has instructed his men to work three days a week even though the contract expired last June 30. U. S. Steel Corp. said all 15,000 miners employed in Pennsylvania, West Virginia, and Kentucky by Its coal mining subsidiary were idle. Continued on Page 18, Col. 4. FranklinW.Olin Observes 90th Birthday at Work Franklin W. Olin, retired munitions manufacturer, celebrated his 90th birthday by making himself very busy all of today In his office in the First National Bank & Trust Co. building at Third and Belle streets. Anyone who might have thought that a man of 90 years might be pardoned for remaining at home on his birthday would have been much mistaken had he tried to find Jiim at home. He was busily engaged at his desk In his office at the usual time this morning and remained until the time in the afternoon when he usually calls it a day. Mr. Olin was especially happy over recognition that was sent to him today by members of the Southern Wholesale Hardware Association, with headquarters st Louisville, Ky. It Is a handsomely engrossed brochure which testifies that it was sent to him by the executive board of that group as an expression of their goodwill because of the service he had been to that organization away down the years. It was cited that the brochure had been prepared In conformity with a special resolution as a tribute to him. Mr. Olin said today that when he was getting started in business over 50 years ago he had some very happy business relations with the Southern Wholesale Hardware Association. He was deeply touched that they would send him this birthday greeting to mark his ninetieth anniversary. > Mr. Olin is much Improved In health after having gone through a very serious illness during the past year. He was. today enjoying his birthday, spending the day In receiving congratulatory messages from distant friends and calls from those who are close enough to make s personal visit. President Offers . 1 Billion-ln-Red Budget To Congress Longest Mcasage-27,000 Words New Truman Budget Would Cost Each Citizen $282.17 WASHINGTON, Jan. 9, UP)— President Truman today recommended a $42,439,000,000 spending budget to Congress. But even with "moderate" tax increase he wants, the President set no date for a balanced budget. The $42,439,000,000 spending total is equivalent to $282.17 for each man, woman and child in today's population. It is larger than last. January's record peacetime budget estimate, but. $858,000,000 less than the $43,297,000,000 now expected to bo spent, by June 30. The budget message read by Senate and House clerks was the longest on record—27,000 words. Even before he spoke, Chairman Cannon (D-Mo) of the House Appropriations Committee offered a budget balancing idea: Cut spending by $2,500,000,000 and raise taxes the same amount. Also a planning organization of businessmen, the Committee for Economic Development, came out for a billion dollar cut in excise taxes and another cut of equal size in the double tax in corporation earnings. It further proposed savings in expenditures on veterans, defense, foreign programs .and housing. Mr. Truman sketched the makeup of 1951 spending ,in broad strokes. He charged off nearly $30.000,000,000 or the 71 percent his budget alloted to national defense, foreign affairs, veterans programs and interest costs of the federal debt with these words: "Financial requirements to pay the costs of past wars and to achieve a peaceful world." These four "cold war and aftermath-of-war" Items, all told, would cost $1,781,000,000 less in the next fiscal year than in this one. Then he discussed the nearly $12,500,000,000 In domestic programs that, constitute the other 29 percent of his budget and contain at their core his welfare goals. The military defense program alone was budgeted for $13,545,000,000 spending in fiscal 1951, an increase of $397,000,0(00 over this year. Foreign aid registered biggest decline from this year—down $1,253,000,000 to a 1951 total of $4,711,000,000. The "aftermath of war" costs also declined. Veterans, at $6,080,000,000, would get $825,000,000 less than this year. The annual interest charge on the debt, off slightly, would cost $5,625,000,000. But the increased cost of the domestic programs Mr. Truman wants to enlarge would cancel out more than half the spending decreases in the other fields. The chief executive's forecast of a $5,133,000,000 budget deficit for fiscal 1951 was based on estimates that the government would spend $42,439,000,000 in this 12 months Indiana Faces Threat of New Levee Washout 'Continued on Pane 2, Col. 7. By THE ASSOCIATED PRESS The Wabash river, straining at its man-made bulwarks threatened today to flood thousands of acres of Indiana land, adding to the devastation of one major levee break-through. The Niblack levee seven miles north of Vincennes, Ind., collapsed Sunday night, flooding 16,000 acres of lowlands and forcing evacuation of all persons in the area. But this run-off of water is expected to have little effect on the pressure of river water inching near the top of Vincennes' sea wall. Meanwhile, 30 miles upstream—at the Grayville levee—residents fled to safety fearing a momentary le ve_e washout. If the levee crumbles, some 45,000 acres of rich farmland would be flooded. 2g-Foot Crest Forecast The river reached 26 feet at Vincennes last night and the weather bureau revised upward its earlier estimate oi B 28-foot crest. Paul A. Miller, chief meterolo gist at the Indianapolis weather station, said the Wabash might reach nearly to the top of the 29- foot sea wall late Wednesday or early Thursday. More than 900 troops sent In last week from Fort Knox, Ky. were standing by for orders to begin building "mud boxes" on top of the sea wall if it appeared the water would come over. Aider by volunteers, they worked last night preparing and stacking sand bags to reinforce the wall. The weather bureau predicted warmer weather and rain In Indiana today, but the rainfall was not expected to have any important effect on flood levels. Some Vincennes streets were blocked yesterday by water backed up by blocked sewers, and some basements were flooded. Flood Level 18 Feet Flood level at Vincennes is 16 feet, no previous floods have been high enough to £o over the 29- foot wall. At Terre Haute, the river reached its crest of about 25 feet yesterday, flooding some lowlands around West Terre Haute. Up- slream, it was falling. At. CarmI, 111., government river observer Charles Huber, predicted a worse flood there from the Little Wabash than occurred a year ago. Almost all of 60 families In eastern Carmi had been evacuated. Huber said the Little Wabash would pass last year's stage today Continued on Page 18, Col. 5. Eyewitness Account- U. S. Freighter Hit by 30 to 40 ShellsRunningChiangBlockade (Wayne Rlchardion, AeiooUted Press hurrau chief In Hong Keng. boarded the American freighter Flying Arrow bound »er Shanghai on the tint leg of a homeward Journey. He Is the only neweratn en board, 111* llril hand account el the freighter by Chlneie Natlo»- •Hit gunboat* follow!.) By WAYNE RICHARDSON ABOARD THE FLYING ARROW OFF SHANGHAI, Jan 9 — (ft—Chinese Nationalist gunboats shelled this American freighter mercilessly today, rendering her unseaworthy with between 30 and 40 shell hits. There were no casualties among the crew of 43 and 12 passengers. Chinese Nationalist gunboats, blockading Red held Shanghai, stood guard over the Flying Arrow after the shelling. (From Taipei, Formosa, Chinese Nationalist naval headquarters announced their warships detained the American freighter after the shelling. A naval spokesman said the Chinese opened fire when the Flying Arrow ignored warnings to halt). Numerous fires were started aboard. Sailors from the British sloop Black Swam boarded the Flying Arrow and helped the crew put out the fires. Part of the ship's $10,000,000 cargo loaded in Hong Kong was dumped overboard when U caught fire. Capt. David Jones of Chicago pronounced the ship no longer seaworthy after Inspecting the numerous shell holes. Some largo ones were just above the waterline. Capl. Jones requested the ship'* owner, the Isbrandtsen Line nt New York, to ask the U. S. State Department to intercede for safe passage to the nearest port for repair.-. Shanghai Is the nearest port. (In New York, H. JJjIsbrandtwn, president of the line, called for protection of the Flying Arrow by U. S. naval units. He said the shell- Ing of the ship was "entirely unlawful according to international law.") Most of the shelling took place on the high seas outside Chinese territorial waters. Capt. Jones said afterwards: "We were 19 miles from the nearest land and were anchoring In international water when we were attacked unexpectedly by a Chinese gunboat. "They blinkered that mines were being laid. At the time of my anchoring they signaled: 'You must not enter.' "Shortly thereafter they started pumping shell into and over the ship. "We saw shell going over the bridge and passenger cabins, plopping into the water on the other side, some very close. "Even three short blasts on the steam whistle signifying my engines were going full astern did not stop them from firing." Two Chinese Nationalist destroyer escorts tailed the vessel from the time she passed through Formosa Strait on her northward trip from Hong Kong. They fired at least 38 shells at the vessel before they scored a hit. But once their gunners got the range they poured shots into her. Capt, Jones said the ship's steering room was hit by 14 shell. Afterdeck houses and the water tank were riddled by other shells. Eleven American members o( the Flying Arrow's crew left the ship In Hong Kong rather than risk the trip to Shanghai. Addition* al crewmen, most of them British, were taken on, The ship's 13 PM> sengers included seven woman who we returning to Shanghai Truman Warns Revisions Could Upset U.S. Economy Replies in Advance to Ex« pected Roars of Dissap* proval from GOP By STERLING F. GREEN WASHINGTON, Jan. 9 (*» — President Truman submitted • $5,100,000,000 - in - the - red budget today with a warning to Congress that to tamper with It might upset prosperity at home and peac. in the world. It was an anti-deflation budget, as economists would vie* It. Tha government would be pitting more money Into the public's pocket than it takes out in the year starting July 1. That Is • prop for income and buying power. Direct Support Mr. Truman replied in advance to the expected roar of disapproval from economy-minded Congress members. Federal expenditures, he said, are "direct supports for important sectors of our economy." He declared that the budget provides a "solid basis for moving toward budgetary balance In the next few years," and gave this warning against "sharp and arbitrary" slashes: "Irresponsible and short-sighted budget action could contribute to a worsening of the world situation and to a decline in production and employment in the United States.'* If business slumps at home, or If cuts in military and foreign spending cause the international situation to worsen, the President said, "we would find ourselves faced by the necessity of budget outlays much larger than those I am proposing, while the. prospect for increased revenues would be much less encouraging." Broad Hint of Taxes "I am convinced," he added, "that the recommendations I am making, both for expenditures and for revenues, will contribute to continued economic development." However, he gave a broad hint that he plans higher taxes on corporations. It came in a discussion of his announced plans to send to Congress a special tax message for a "moderate" increase In taxes. The hint was this: Mr. Truman said the increase in revenues won't ae nearly as large in 1951 as in later years "owing" to the time required for some of the changes to become fully effective.'* This may have referred to the k in collecting from corporations, which pay each year on the previous year's proftis. Only one- fourth of the tax on 1950 profit* will fall due before the end of fiscal 1951, which Is 18 months torn now. Estate, Gift Taxes Estate and gift taxes also lag, and are likely candidates for increase. But individual incom. .axes are on a pay-as-you-go basis, ID Mr. Truman obviously wasn't alking about them. And he probably meant excise .ax reductions when he said, in another passage, that some of the changes "will result In an immediate loss in revenue." Businessmen have urged cuts in war Urn a xcise on transportation and many consumer goods, declaring them a serious handicap to business. The President promised that th. ax proposals, if approved by Congress, will stimulate the kind of nvestment, consumption and sav- ng "which will contribute to an expanding economy." Although the message referred repeatedly to what he called the 'tax reforms," he gave no fur* her real clue to their nature. Speculation has centered on th. corporation tax. Cash Outpouring Cut The budget outlays will have • smaller pump-priming effect on >usiness than the sizeable deficit would> indicate, because there art other government operations which •educe the total outpouring of cash. These Include the social security system, veterans' insurance Continued on Page 3, Col. f. Weather Increasing cloudiness, windy «nd warmer today, cloudy and continued mild tonifhr and tomorrow with occasional rii* befinnini tonight or tomorrow. Lowest tonight about 45, afternoon temperatures in middl* 50s today and tomorrow. Skip* pars' forecast: Above f nosing in all directions. Blw

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