Decatur Daily Democrat, Volume 46, Number 9, Decatur, Adams County, 12 January 1948 — Page 1

oh XLVI. No. 9.

TRUMAN ASKS NEAR 40 BILLION BUDGET

Stop Russians Cost Fixed At Over 12 Billion Truman Says Huge Spending Vital To Halt Totalitarians Washington, Jan. 12.— (UP)— President Truman today put the cost of his stop-Russia foreign, .policy for the 1948 and 1949 fiscal I years at $12,542,000,0(<’0. That is the amount he wants to spend for “international affairs and finance.” Most of it is for the vast foreign relief and recovery programs. Mr. Truman said the huge spending abroad is necessary to prevent “extension of totalitarian rule." He asked congress in his annual budget message to appropriate an unprecedented peacetime total of -more than $9,000,000,000 for foreign aid programs alone. These appropriations would be spent in the 1948, 1949 and 1950 fiscal years. Out of these proposed appropriations, and money already voted by congress, the President estimated the $12,542,000,000 actually would be spent in fiscal 1948 and 1949. The $9,000,000,000 in requested new appropriations for Mr. Truman's global aid program included the 56,800,000,000 he is asking for; the first 15 months of the fouryear European recovery program. It includes also a sharply increased $1,250,000,000 for army relief in occupied countries, $750,000,000 for “other international aid pro-i ! grams for several countries, including China,” $71,000,000 for the international refugee organization, and $132,000,000 for war damage | and rehabilitation in the Philippines. These huge requests were in sharp contrast to Mr. Truman’s budget message of only a year ago. Then he predicted that the time of large-scale foreign relief was “almost over.” He asked for only a “modest relief program for a few] countries” —$250,000,000. At that time he thought the Anglo-Ameri-can zones of Germany would he I self-sufficient in 1949. “The new international program,” he said today, “is our answer to an unprecedented challenge . . . should failure of these programs result in a further expansion of totalitarian rule, we .would have to reexamine our se-1 icurity position and take whatever steps might be necessary under the circumstances. “The costs of added military strength, if Europe should sue- 1 cumb to totalitarian rule, would far exceed the costs of the program of economic aid now before con-! gress.” Congress already has appropriated stop-gap relief for France, Italy, Austria and China. Mr. Truman promised “definite recommendations" to congress shortly on new aid programs, including China, for which he has -budgeted $750,000,000 over and .above the Marshall plan. China is expected to be earmarked for $300,000,000 of that amount, i Mr. Truman did not name any other countries, but Korea probably will be tagged for about $75,000,000. There was no indication whether the administration will use some of the rest for additional military appropriations for Greece. 0 Josephus Daniels Lying Near Death •Raleigh, N. C., Jan. 12 —(UP)— Josephus Daniels, 85-year-old editor of the Raleigh Newts and Observer and World War I secretary •of the navy, battled grimly against pneumonia at his home today but doctors said they could find no ■hope that he might rally. Daniels lay in a deep coma beneath an oxygen tent. The former ambassador to Mexico was sent to bed eight days ago with a severe cold. Later he developed bronchitis and then pneumonia. 0 WEATHER Cloudy, rain changing to •now In the south portion tonight and continuing through most of Tuesday. Snow flurries In the north portion tonight.

DECATUR DAILY DEMOCRAT

Soviet Intimidation Campaign Is Opened Russian Guard Fires Bullets At Officer Berlin, Jan. 12. — (UP) —Amerl- '. can and British officials braced [themselves today to meet a threatened Russian campaign of intimidation designed to force them to quit Berlin. The Russians served notice of their intentions Sunday in the official Soviet army newspaper Taeglfche Rundschau which said “there is no space in Berlin for i the supporters of Germany’s partition.” A few hours later a Russian border guard fired five bullets through a car carrying an American major and his wife, wounding the major in the finger. American authorities said the officer, air force Maj. Richard R. Baker, was fired on after he had passed through the Helmstedt checkpoint barrier on the international highway linking Berlin with the British zone. Baker and his wife were travelling in a small German convertible. The Russian guard permitted them to pass and proceed 75 yards before he opened up with his rifle at the car. Baker, attached to the judge advocate general’s office at Wiesbaden, said he halted immediately when the bullets ripped into the back of his car. Baker’s finger was nicked, but he was not sure whether it was from flying glass or a bullet. American authorities said the Russian officer on duty at the checki point apologized and reprimanded the guard. “England and the United States I have entered the dangerous route [ of violating the control mechanism (allied control authority) which will unavoidably lead to a change !in the occupation statute of Berlin,” the Soviet army paper said in a page one editorial just before the shooting incident. “It can no longer be tolerated that Berlin becomes the object of separatism. There is no space in Berlin for the supporters of Germany’s partition.” The editorial was Written by M. Sobinov, a Russian army officer. Observers said the Russian campaign to take over the German capital was set off by failure of the London conference and the recent Frankfurt announcement creating a stronger central administration in the Anglo-American zone. Observers do not believe that the Russians will resort to force to drive out the British and Ameri- ' cans, even though the Soviets have . two armies near Berlin and there are fewer than 1,500 Anglo-Ameri- | can combat troops in the capital. Gen. Lucius D. Clay has stated publicly he will not withdraw from Berlin unless force is used. When asked to comment on the Russian ' editorial, Clay said he had no com- ! ment “for the present.” It is believed the first major action contemplated by the Rus(Turn To Page 2, Column 6) 0 Monmouth Teacher Undergoes Operation Myron C. Lehman Is Reported Improving The condition of Myron C. Lehman, Monmouth high school coach and teacher, was reported much improved and progressing satisfactorily today at the Adams county memorial hospital. Lehman became violently ill while witnessing the second afternoon game of the county basketball tourney Saturday afternoon and was rushed to the local hospital. He submitted to a major operation about 8:20 p.m. Saturday for the removal of a stomach ulcer — ( while his Monmouth team was winning the final and championship game of the county basketball tourney. Lehman had directed his charges through two preivous wins to enter the final round of the tourney. He rallied quickly after the operation and Sunday, members of his team were permitted to visit him and present him with the basketball and goal nets, which they claimed as prizes for their victory.

Stassen-Pauley Feud Sizzles Over Profits Liar Charge Hurled By Principals On Grain Speculation Washington, Jan. 12 — (UP) — In polite but pretty clear terms, Harold E. Stassen and 'Edwin W. Pauley were calling each other liars today in a long-distance argument over Pauley’s commodity market epeculation. Their feud sizzled in the background as a senate subcommittee contiued its investigation of alleged speculation by government “insiders.” One of the alleged “insiders" is Brig. Gen. Wallace H. Graham, white house physician, who will be called tomorrow to tell the subcommittee about hie speculations. Pauley, who is a special assistant to the army secretary, and Graham were revealed to be speculators as an aftermath of charges by Stassen, a Republican presidential aspirant, that administration “ineiders” were making a killing by profiteering in foodstuffs. The Stassen-Pauley exchange leached a white heat after Stassen told the senate committee last week that Pauley had profited to the tune of $1,000,000 and hadn’t told the whole story of his operations. Pauley acknowledged last night that he had made $932,703.10 in commodity trading during the past three yeans. But contrary to Stassen’s assertions, he saia, he had no inside information. “Under oath you charged that I used inside information to profit in commodities,” Pauley said in a telegram to Stassen at Omaha. Neb. “When you return before the committee — if you do return — I intend to prove where you falsified — again and again — and to expose you.” Pauley had hurled a similar “falsification” charge at Stassen shortly after the latter’s senate testimony and Sen. Homer Ferguson, R., Mich., chairman of the speculation subcommittee, immediately arranged to get the two men back into the hearing room on Jan. 23. Stassen’s reply to Pauley was, in effect, that if anyone was telling a falsehood, it wasn’t Harold Stassen. "I can and will prove any statementa I have made about Pauley,” he told newsmen at Omaha. “In 20 ' (Turn To Page 5. Column <) — _ o Two Persons Hurl As Auto Overturns

Rockford Couple Injured Saturday I Two persons were injured, one seriously, when their car overturned three miles north of Decatur on U. S. 27 about 8:30 o’clock Saturday night. Amos “Jack” Schumm, 25, Rockford, O„ is confined in the Adams county memorial hospital, suffering from a fractured pelvis and a punctured left eye, sustained in the crash. Mrs. Amos Schumm, 25, his wife, suffered cuts and bruises and was released after treatment. Sheriff Herman Bowman, who investigated the accident, said that Schumm lost control of his auto on the berm when he attempted to pass another southbound vehicle and a northbound car approaching him forced him from the road. The car rolled completely over and came to a stop right side up, Both Schumm and his wife were thrown out of the vehicle when it rolled over. An accident 10 miles north in Allen county, which occurred about 7:45 o’clock last night, was reported to sheriff Bowman. An auto operated by Thurman Baker slid on the slippery pavement into an auto driven by Robert C. Bray, Hoagland, as the latter slowed to make a turn off U. S. 27. Damage was estimated at S3O. Cars driven by Hubert Keller, Decatur, and Walter Lehman, Berne, collided in Berne Saturday night as the latter was backing out of a driveway. The accident was also reported to the sheriff. Damage was estimated at S2O.

ONLY DAILY NEWSPAPER IN ADAMS COUNTY

Decatur, Indiana, Monday, January 12, 1948

Shooting Ends Crime Tour qC ORI "’ "’’iL -WWI I I x ! " A*' \ £|| \ \A if ; . .. I ■ ■ U/’ - . 4 A “BABY-BANDIT crime tour” which began when five youths, four boys and a girl left Mansfield, Ohio, in a stolen car, ended in Quincy, 111., with the death of one boy and the arrest of the others. Richard Grubaugh, 17, (left) and Robert Livingston, 16, were arrested in Quincy, after Leroy E. Miller was shot to death in what they called an “accident." The fourth youth, Bruno Dresch, 32, and his New Year’s day girl-bride, Ruth, 16, were arrested in a Peoria, 111., hotel. The gang confessed numerous holdups and robberies.

Friedheim Church Plans New School Contract Awarded For New Building The general contract for an SBO,000 modern school building and congregational center has been awarded to Clarence Bultemeier by the trustees of Zion Lutheran church in the Friedheim settlement in Preble township, it was announced today. Bids for the brick, stone trimmed story and one-half building were received by the committee and formal award of the contracts took place yesterday. Containing three large class rooms on the second floor, there will be a basement under the entire 60 by 90 foot structure. It will be located north of the present parsonage, Mr. Bultemeier stated. Four proposals were submitted on the general contract. They were: Buesching and Buesching. $60,565; Hagerman Construction Co., $67,377; Yost Construction Co., $54,378; Bultemeier Construction Co.. $53,770. The Industrial Piping company, of Fort Wayne, Was the low bidder for the heating and plumbing contract. With an original bid of $24,987, elimination of certain items in the specifications reduced this contract about $3,000. The electric wiring contract was awarded to McKay Electric company, Fort Wayne, on the original proposal of Turn To Pqgro 2. Column 6) 0 Missionaries Are Killed By Bandits Two American Women Victims In Hankow Nanking, Jan. 12 — Two American women missionaries and a Finnish missionary have been killed by bandits northwest of Hankow, and an attempt is under way to evacuate 20 other Americans from the area, according to a message received by the U. S. embassy in Nanking today. The message, sent by Edward Nelson from the covenant mission at Siangyang, said the missionaries belonged to a group from the Evangelical Church of the Covenant, with headquarters in Chicago. Siangyang is 188 miles northwest of Hankow, and is situated on the Han River in Hupeh province. The dead were identified as Father Victoria Nordlung, Chicago; Martha Anderson, Minneapolis; and Dr. Alexis Berg of Finland, I whose wife, Signe, is now in Helsinki. Nelson said an attempt was being made to evacuate 12 other Americans by air and eight at Kingchow by boat on the Yangtze river “if possible." The embassy here had no further informally of the incident, and did not know if any progress had been made toward evacuation of the Americans.

Geimer Funeral To Be Held Tuesday Funeral services for Mrs. Cornelius Geimer, who died Saturday morning, will be held at 9 a.m. Tuesday at the St. Mary’s Catholic church, with the Very Rev. Msgr. J. J. Seimetz officiating. Burial will be in the Catholic cemetery. The body was removed Sunday.evening from the Gillig & Doan funeral home to the residence. 103 North Thirteenth street. o —— Health Insurance Is Asked By President Increased Old Age Benefit Also Asked Washington, Jan. 12.—(UP) — President Truman today called on congress to create a national health insurance system, increase old-age benefits and extend social security coverage into the nation's farms, kitchens and stores. He proposed to finance the health insurance with a new payroll tax of one-half on one percent. He also told congress in his budget message that it should figure on increasing present social security taxes. The President said he would give congress the details in a later special message. Meanwhile he asked for $116,000,000 to get these projects started in the coming fiscal year. Here are the major features of Mi Truman's vastly-broadened social welfare plans, which he said would provide greater protection to the people “against the major economic hazards of our society.” 1. Extend coverage of old age and survivors insurance to “all gainful workers," including agricultural and domestic employes, farmers, and other self-employed persons. 2. Increase the amount of old age benefits, beginning in 1949. Recommendations as to the amount of increase are being prepared. 3. Make a greater share of an in dividual’s income subject to the old age insurance tax of one percent At present, no more than $3,000 can be so taxed. The proposed new maximum is under study. 4. Establish a national system of health Insurance, to be financed at the start by an additional payroll tax of one-half of one percent of individual salaries up to $4,800 a year, effective Jan. f, 1949. Whether the same rate will also be assessed against employers has not yet been determined. 5. Extend unemployment compensation coverage to employes of (Turn Tn Page 2. Column f>) Gasoline Retailers Will Meet Tuesday The Adams county gasoline retailers association will meet at Riggins’ garage at Geneva Tuesday evening at 8 o’clock. Dealers in the northern part of the county are asked to meet at Macklin’s garage at 7 o’clock to make the trip in a body.

Increased Budget Sent To Congress; GOP Set To Rip Budget Apart

Marshall Will Stand Pat On Plan Control Insists European Recovery Subject To State Control Washington, Jan. 12 —(UP) — Secretary of state George C. Marehall said today he has an “open mind" on the machinery for operating the'European recovery program, but insisted on a single administrator subject to state department control. Marshall opened the second front on his campaign for congressional approval of the recovery program. He testified before the house foreign affairs committee today to present .somewhat the same case he gave the senate foreign relations committee last week. The administration is asking for a 15 month $6,800,000,000 down payment to get the four year Marshall program in operation. Marshall has run into strong Republican and Democratic opposition to his proposal for administering the urogram and has been accused of trying to keep the state department's thumb over it. The administration went before both house and senate committees to get approval of its proposed long-range recovery program.

While Marshall testified before j the house committee, secretary of commerce W. Averell Harriman went before the senate foreign relations committee. Harriman said | the Marshall plan would be a factor in maintaining high prices in the United States. But he insisted that the real causes of inflation grew out of the business situation within the nation. Marshall, in his testimony today, moved to meet the opposition of those against his administration plan. In the house, the Herter committee on foreign aid has a virtual substitute Marshall plan (Turn To Page 3. Column 6) Bank In Tel Aviv Robbed Os $48,000 Jewish Underground Agents Are Blamed Jerusalem, Jan. 12.—(UP)—Seven masked bandits identified tentatively as Jewish underground agents seeking funds for the war with the Arabs robbed Barclay's bank at Tel Aviv of $48,000 in a bold daylight raid today. The Tel Aviv hoffiup, which followed the now familiar pattern of Jewish attempts to finance underground campaigns, was carried out as scattered flurries of violence marked the continuing hostilities in Palestine. The bandits rode to Barclay’s bank on busy Allenby road in a truck reported stolen a little earlier from a Jewish driver for the Samarand army camp. Flourishing machine guns and revolvers. they scooped up cash reported by the bank to total $48,000. Five minutes after their appearance, they had disappeared down Allenby road. Jewish police, who had taken up the duties formerly carried out by British officers in that area, were reported to have taken half an hour to get to the bank in response to the alarm. Smouldering hostilities along the Syrian-Palestine border were reported to have died down. They were highlighted by the wrecking of the bridge of Jacob's Daughter across the Jordan river, cutting the main highway between the countries. British under (Turn jo Page 3. Column 7)

Budget In Tabloid By United Press President Truman proposes that during the 12 months starting July 1 the federal government should: Take in $44.4 billion, compared with $45.2 billion this year. Spend about $39.6 billion, compared with $37.7 billion. Wind up with a $4.8 billion surplus on June 30, 1949, compared with an expected $7.5 billion surplus on June 30, 1948. Apply both those surpluses to the federal debt, instead of reducing total taxes. Bring the debt down to $246 billion by the end of June, 1949. The debt is now $256.5 billion. Spend 11 billion on national defense, compared with 10.7 billion during the current fiscal year. Spend $7 billion on international aid compared with $5.5 billion. Asks Increase For National Defense Largest Single Item In Truman's Budget Washington, Jan. 12 —(UP) — President Truman today asked congress to spend $11,025,000,000' for an air-minded national defense program during the 12 months starting July 1. ‘ He put heavy emphasis on increased numbers of military airplanes and called for funds to start universal military training. National defense was the largest single item in Mr. Truman’s fiscal 1949 budget. It accounted for 28 percent of proposed spending—24.9 percent if debt reduction is considered. But the President said his pro posals represent the minimum re quirements of the military estab lishment for national safety. The $11,025,000,000 1949 nationa' defense outlay would be an in crease of $279,000,000 over what ir being spent during the current 12 months. It includes, however. $40’0,000,00* to get under way in 1949 the be ginning of a universal traininr program which Mr. Truman said eventually will cost two billion dol lars a year. Congress is not likeb to authorize universal training ir this election year. Mr. Truman proposed "consider able” increases in the procuremen* of aircraft both by the newly-inde pendent air force and the navy These increases, he said, ar "necessary to support our air arm' at the planned level” because “war time reserves of planes and part' are becoming depleted or obsc lete.” There should be more ex mansion in 1950, Mr. Truman said He asked for $1,230,000,000 1’ 1949 for the procurement of nev olanes — including cash expend' tures and contract authorizations That would be $306,000,000 mor< than the figure for the current sis cal year. Os the total, the air force would get $767,000,00'0 and the naw would get the other $463,000,00* for its planes. The other major defense increas' asked by the President was fomilitary stockpiling, “particulars to build up reserves of those rav materials and supplies which mus' be obtained from overseas source' that might be cut off in time o war.”

For this purpose in fiscal 1949 he proposed to spend $305,000,00* compared with $110,000,000 in th< current fiscal year. o Holy Name Society To Install Officers Officers of the Holy Name society of St. Mary’s Catholic church, will be Installed this evening at the K. of €. hall by the Very Rev. Msgr. J. J. Seimetz. The officers are, Herman Knapke, president; Joseph Schultz, vicepresident and Leo Miller, sqpretary. Luncheon will be served following the ceremonies.

Price Four Cents

Cites International Emergency; Asks For Funds Planned To Launch Programs Washington, Jan. 12 — (UP) — President Truman today sent to a Republican congress, which is sure to rip it apart, a cold war budget for spending more than $39,668,000,000 in the fiscal year 1949. That is a spending increase of $1,941,218,622 over the current fiscal year. But Mr. Truman called the new budget “een more realistic and hard-boiled than the budget of 1948.” He cited the international emergency, rising prices and demands of public interest as factors forcing spending up.

He asked for funds to start new programs which would run into billions of dollars annually in future years —a national health insurance plan, vastly broedenad old-age and unemployment insurance coveagfie, and univesal military training among others. The president estimated 1949 fiscal year receipts at more than $44,475,000,000 and the surplus at upward of $4,800,000,000. And he sajd the current fiscal year will end June 30 with a surplus of $7,482,000,000 making a two year surplus of more than $12,000,000,000. This is the third consecutive surplus. These fat surplus estimates were accompanied by anti-infla-tion warnings that they must g-t for reduction of the national debt, not tax reduction. Mr. Truman insisted again that his proposed S4O-for-everybody tax cut should be offset by increasing corporation taxes by $3,200,000,000. The budget was a boomtime program which foresaw no recession in the next 18 months. For the war. Mr. Truman ssked congress to spend a whopping $18,033,000,000 for national defense and* international affairs and finance. That is 46 percent of the total if proposed 1949 expenditures. It. 'ncludes the European recovery program, aid to China and to several other nations. It does not include $660,000,000 sought for ‘he atomic energy commission. Xtornic energy spending is listed is a natural resource expenditure. All other expenditures propos’d in the 1949 budget were estimated at approximately $21,600'OO,OOO. Purely national defense account'd for approximately $11,000,000,,f to and international affairs and ’’nance approximately $7,000,000,■no of cold war expenditures. Mr. -ruman included $400.000,000t0 get olng on universal military training ' and when congress okays it. The °w air force apparently gets the 'attest slice of national defense ■’nds. The treasury now is considering -'wnulas for increasing corporation axes to balance the S4O-for-every-ody reduction proposed for indivdual income tax payer*. The proused new levy — which congress ■’on’t pass — will be either an exass profits tax or a flat increase n the rate for corporations earned -tore than $50,000 a year. A flat increase of 13 percent is he more likely, with adjustments or smaller corporations. That "ould hike the corporation rate •cm 38 to 51 percent. Top adminfa--ation spokesmen said corporaons were making so much moneytax increase on them should not ead to higher prices. The presi.Turn Tn 3. Column S) O Indianapolis Fire Loss Half Million Indianapolis. Jan. 12 —(UP) — Damage was estimated at $500,000 ’oday from a fire and series of exnlosions which destroyed a large two-Btary building here last night. One fireman received minorjnjurles battling the flames The building contained offices and warehouses the U. S. Rubber company, tTie MinneapoltaHoneywell iwm and the Skinner Radio Corporation.