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Show Page THE JOURNAL 2 WEEKLY NEWS ANALYSIS ESPIONAGE New Governor Dewey Announces Plans to Retire After Twenty Vears in Public Life; Russia Offers Gold L"Jar 'Terms Observers are speculating over cold war peace terms reportedly acceptable to the Russians which include a demand that the United States cease helping to western Europe. It was an ironic demand because Soviet agreed at the same time-thto recognize the Atlantic pact as a legitimate regional defense group under the terms of the United Nations charter. It is this pact that pledges the western nations to mutual aid. The Soviet also had three demands on the Far East: (1) Elimination from the United Nations of the representatives of Generalissimo Chiang Kal Shek's so-call- ed re-ar- Whoa opinions aro oxprooood la Ihooo eolomno. tnop nro Ihooo of Wootora Nowopapcr Unions nows nanlyoto and not boo oooarllp of this nowspapor.) (Editor's Koto I m Admits Spying of Germany, (3) Withdrawal of all occupation- al forces from Germany. (4) General reduction of armaments and armies, including the abandonment of conscription. Observers did not believe the terms would be attractive enough to bring about any settlement of differences between the East and the West. Russia, as usual, wants a great deal but is vague about tangible returns. David Greenglass, 28, former noncommissioned army officer, has admitted giving Russia Information about the atomle bomb. He was the third person arrested In the spy ring since the British scientist Klaus Fuchs was taken Into custody. COMMUNISTS: Defeat by Ballot Political observers were pleased 215-se- nt nt At 3.8 Billion The administration has predicted a $5,400,000 deficit by the end of the fiscal year June 30, but shortly before the deadline it appeared the amount would be well under the estimate. A $773,625,000 interest payment on the national debt boosted deficit to $3,887,529,000. The the pay- ment was made- - two weeks before the end of the fiscal year. ss urged in a special message to gross negW con- said in a gress. statement which he personally The committees accepted a proto reporters, I shall not vision to give counties the right to next remove controls e a candidate for by December 31. fall." He renounced further perThe bill would have no effect on sonal White House ambitions last states or local areas which have December. dropped federal controls. CommunAs expected, his announcement ities that wish to continue ceilings raised a number of questions in for six months of next year would the New York state political pic- be required to take affirmative acture as well as on the national tion either by referendum or by scene. action of their governing body. An estimated 8,000,000 housing Dewey, New Yorks only Republican governor in the past 30 years, units now are under controls. added, however, that he would continue an active interest in public LABOR: affairs. He promised to speak out of Unify on issues affecting the welfare of Degree the state and nation," especially A degree of future unity between affairs. foreign big labor unions appeared on the He rose to political prominence horizon as the A.F.L. and the C.I.O. when he pyramided his fame and worked on plans for their pending Tlie one methodical efficiency as a racket-bustin- g cooperation conference. prosecutor in New York notable exception, however, was the city into two terms as governor uninvited United Mine Workers. UMW chief John L. Lewis was and two nominations for President. He was defeated by President not happy at being left out of the Roosevelt in 1944. In 1948, he lost conference. He said a conference to President Truman. without his union is no way to The governor said he had made achieve, labor unity. While he was making that stateno definite decision as to his plans, but intended to get much rest. He ment, the national labor relations said there was nothing wrong with board took a swat at the UMW by y him physically that a long vacation ruling It broke the would not cure. He is just tired," law by a campaign of violence to organize employees of a Harlan he added. county, Kentucky, department one-senten- ce re-electi- ion," five-cen- 3 at Taft-Hartle- CORPORATIONS: Increased Taxes When the election conscious house and senate began a program of tax cutting after President Truman offered his budget, he warned any reductions must be met with revenue from other sources. Now, the house ways and means committee, obviously bidding for presidential approval of the excise-ta-x cut had voted a $433,000,000 increase in the yearly tax on big corporations. If the new corporate-ta- x plan became law, the normal tax rate on the biggest corporations would be stepped up from 38 per cent to 41. At the same time, however, the bill would cut the tax load on small corporations earning from $5,000 to $167,000 a year. The new proposal was voted after a conference with tle President. It was believed in many quarters congress will pass an e-cutting bill and the President excis- 1,000-year-o- b5mb The other accused, ld Syracuse?! denied he knew He- - J dded he was not been a Communist Both men are held ur0 0 bonds. Mean'vhile, a grand Jey tigating Amerasia case t L been much in the headlines ly, cleared the administr handling of the stolen doe case, but strongly reconr the impaneling of i jury to continue the in connection Emmanuel rested and that hinged Inver-Als- with S. Larsen, him; fined in the IK on the theft of 1c diplomatic and military of told a senate investigating e principal ec tee he regarded former niv; tenant Andrew Roth as a Ci nist, and the tor in the stolen-documen- ti ARMS AID: Committee A bill second Approves authorizing intallment to nations arms aid $1, of fighting munism has been approved' senate armed services and relations committees. Its approval caused some quarters since it just about what the adm asked. There was one clause the first arms aid program, ever. It calls for a public 1"1' ing of some China area If it becomes store. The board ordered the union to cease assaulting, or threatening the store employees. If the union ignores the order it could eventually lead to possible jail sentences or fines for union officials. But while the UMW struggles with its problems, there were long strides by the other union toward cooperation if not eventual mer- would: ia (1) Authorize $1 billion ger. ' for 11 North Atlantic defendC Among the developments : for 1. Joseph D. Keenan, top A.F.L. nations; $131 million million political organizer, addressed the Turkey and Iran; $16 C.I.O.s political action committee. Philippines and Korea, a., His subject was a renewed effort million for the general I by the union to unite to repeal the China. President TrC law. 2. A cross section of American Taft-HSrtle- y labor ranks attended a two-dameeting aimed at raising assistance for the Israeli federation of labor. 3. The Brotherhood of Railroad Trainmen accepted C.I.O. proposal for a committee to work together on common problems and eventually aim at consolidation. y BRIDGES MINED: will sign it. If the bill becomes law, the excise Just in Case levies will be slashed probably Whether or not the world is face September 1 on fur coats, jewelry, movies, luggage, travel, tickets, to face with another war has been telephones, baby bottle warmers in the minds of the everyday citizen almost since the final shot and scores of other items. was fired in World War II. Now it comes to light that the key HUNGARY: roads and bridges in Western GerDemands Ransom many are being prepared for quick faie custom of blackmail, ran- destruction in case of a Soviet atsom and intrigue so often employed tack. Similar preparations apparentby the Nazis in the reign of terror ly are being made in other Euroover Europe, has put in a more pean countries. Observers said the measures obvious appearance under the Comwere probably from a master plan munists. surgery. Hungary has demanded the an- drawn up by the western defense This was the first time, available cient crown of St. as ran- chiefs, although official occupation medical records indicate, that a som for Robert A.Stephen Vogeler, im- sources declined to confirm or deny human organ has been transmitted prisoned American businessman. such actions are being taken. from one person to another. A French source said: It is not According to reports from Europe, Such work has been done suc- Hungarian Communists have of- only the French zone and along the cessfully on animals, but never fered to swap Vogeler for the Rhine these measures are being tried on humans, to our knowlcrown which is the symbol taken, but everywhere in Western edge." said Dr. Richard H. Lawler, of Magyar royalty. It is the allied high Germany who directed the surgery. The crown was taken from Hun- command which ordered this. If successful it may mean a new gary by the Nazis and later found As could be expected, the news lease on life for thousands through- by the American troops in touched off an upro.ar in the out the country. East German press. , i Russia the infonrau dls-xibut- ed with the outcome of the state election returns in the Ruhr section of Western Germany. They felt it was a defeat of the Communists by the ballot. In the British zone the voters picked a parliament and voted on a proposed state constiINFLATION: tution. The returns indicated Communist strength Tiad tumbled to a To Financial Ruin low when they received Former President Herbert Hoov- postwar 5 only per cent of the valid ballots, er, in a speech before the U.S. compared with 14 per cent in the Junior Chamber of Commerce election three years ago. convention in Chicago, has again The workers, however, favored warned that financial disaster Is the proposed state constitution with in prospect for the country unless its socialization clause: the government curtails its spending Large factories of the basic Inpolicies drastically. dustries and undertakings which, Unless an immediate halt Is or- because of their monopolistic posidered on spending, Mr. Hoover pre- tion have special significance, dicted the undermining of an econ- shall be transferred to common omy which he said would provide ownership." one million new jobs annually, For The specific industries were not 17 years, he maintained, Democratnamed in the draft ic administrations had continued Western observers felt the electhe spending spree. tions justifiable in that they would: 1. Give the new nationalist parFinancing government deficits by borrowing, if continued long ties, which were not even in the arena in the federal elections last enough, has only one the former President said. August, a chance to Show their We ourselves have already de- muscle. 2. Tell whether communism Is creased the purchasing power of , the dollar about 50 per cent, and we gaining In Western Germany. are still creeping along the road. 3. Test the popularity of the West The five-cetelephone call German Federal Governments poland the five-cefare have already icies. t bar has gone, and the shrunk. A new round of inflation MEDICINE: is now appearing in direct or in- A New Operation direct wage and salary increases A new and possibly revolutionary and rising commodity prices. has been performed in If we keep on this road, we are operation Surgeons have transplantcertain to realize the Presidents Chicago. a dead woman's kidney to anideal of $4,000 a year to every fam- ed woman. other ily. But it will not have $4,000 purAlthough it would be several chasing power. weeks before it would be known To this question of further government borrowing to meet deficits, whether the operation were commy answef is that it is the road to pletely successful whether or not disaster for every cottage in the the new kidney had taken hold am gone to work the patients condiland." tion was termed good and the outlook promising three days after the DEFICIT: end-inflat- th con-gre- Dewey as the basic currency for China's foreign trade. (3) Soviet participation in the agreement. (2) Neutralization six-mon- ar (2) Acceptance by the western powers of the Russian gold ruble Made The house and senate committees Since British ' considering rent control have Fuchs admitted 5 extension the F.B.I. has beta agreed upon a controls federal of and another six !foud associate months in communities which want States who One of the most spectacular car- them. atmic WmatioViM eers in modern American politics As a result both of branches Although two ,M ias come to a halt, at least temmust approve the measure, been made. 0?? porarily. there seemed little doubt that they milled that he pa,' Governor Thomas E. Dewey of would do so. cts Uom the Lcj A1 'few York has announced he will Plant in 1945 the said bill Observers be will on retire from politics after 20 years the Presidents desk before June 30. in public life and probably return Mr. Truman is expected to sign o private law practice when his the bill, although It falls short of feint1 "h0 second term expires next Decern-e- r the full one-yewas extension he had 31. government. conclusion of a peace treaty with Japan, which would guarantee the latter country what Moscow considers to be political freedom." In the European field, the Soviet had four rather vague offers: (1) Unification of Germany within the framework of the Potsdam Arrts ld ... Russian-- controlled (2) Permit of use up to 10 per cent to provide arms for M7 the m nation not named In make j strategic location fense of direct import pact the North Atlantic Presided the (3) Permit military equipment whose security United Nations. To toWS is Retire i |