University Dailu Kansan No.34
47 Year No. 34
Wednesday, Nov. 2, 1949
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STUDENT NEWS PAPER
5 Billion Dollar Tax Increase Needed In 1950
Washington, Nov. 2—U.(P.)-President Truman's campaign to boost income and other taxes by five billion dollars or so in 1950 was solidly based today on some of the worst news from the treasury in many years.
Tuesday night the president released a review of the nation's financial condition. It acknowledged that he had greatly over-estimated tax revenue in his budget message the past January and equally had under-estimated how much he would spend in the current 1950 fiscal year.
The nation's peacetime deficit next June 30 when this fiscal year ends, the statement said, will be $5\frac{1}{2}$ trillion dollars. Mr. Truman estimated in January that it would be only 900 million dollars, an error of 4 3-5 billion dollars.
Mr. Truman said in January that fiscal year revenue would be 41 billion dollars. Tuesday he revised that they downward to 38 billion dollars.
The January spending estimate was 41 9-10 billion dollars. Tuesdays estimate was 43 $ \frac{1}{2} $ billion.
Direct and indirect subsidies socked the treasury hard. These subsidies included 1 2-5 billion dollars to support farm produce prices, 1 3-10 billion dollars to support the market for second mortgages on housing and the always substantial postal deficit. Veterans' benefits also were hiked. That was 1 9-10 billion dollars more than had been foreseen for those first two items.
Mr. Truman laid responsibility for about three billion dollars of unforeseen spending on congress. But he acknowledged that congress had saved nearly one billion dollars by refusing to enact his universal military training and aid-to-education projects.
It is a fact that the 1951 budget estimates upon which the administration now is working will project a spending program even greater than in the current fiscal year. So the $5\frac{1}{2}$ billion dollar blotch of red ink now spreading over the record of the current fiscal year is only the beginning of bigger and better deficits unless one of two policies is adopted and vigorously pursued.
The government must either increase its revenue by a tremendous tax hike or reduce its spending by an enormous economy program. Mr. Truman is on record against economy. He says spending is at rock bottom.
He announced in October that there would have to be a tax increase next year. It would be the biggest peacetime tax hike in all history anywhere. The president's top men in congress—the Democratic chairmen of the fiscal committees objected instantly. But they may ultimately have to go along with a tax increase. It has proved to be almost impossible to persuade majorities of the house and senate to offend various groups, such as the farmers, with votes for big time economy.
Weather
In place of a top of 77 degrees, recorded at Anthony's Tuesday this afternoon's peak tempera- ture, it tends to range from 50 to 55 degrees.
The maximum readings were as
much as the degrees under Tues-
day's mild rain.
Kansas—North winds blew into Kansas today, bringing cool but not extremely cold temperatures.
Skies are due to continue fair Thursday, and cool temperatures will stay as well.
Class Schedule For Thursday
Convocation in Hoch auditorium will begin at 9:20 a.m. lasting to 10:30 a.m. Thursday, Nov. 3.
Mary Garden, famous opera singer, will speak. Morning class schedule is as follows:
8 a.m. classes will meet 8:00- 8:30
9 a.m. classes will meet 8:40- 9:10
Convocation 9:20-10:30
10 a.m. classes will meet 10:40-
11:10
11 a.m. classes will meet 11:20-
Noon classes will meet 12:00-12:50
SAM Hears Ise On Investments
John Ise, professor of economics,
told members of the Society for the
Advancement of Management Tuesday
night that in the next 10 years
most of the profits will be made by
persons who correctly guess the
price level 10 to 20 years from now.
Speaking on investments, Professor Ise said that investments should be made with the thought of what the future price level will be. If the investor foreseees inflation he should purchase land or other tangible goods. As the price level would go up, his holdings would be increased and the amount of money it seems imminent, bonds which would not decrease in dollar value with the fall of the price level would be the wiser choice.
Professor Ise advocated having carved above every door the motto, "I will not buy anything that anybody tries to sell me." Applying this motto to the purchase of common stocks he continued, "If you don't know stocks, don't buy from an in-house company," Purchase through a Wall street broker who doesn't have anything to sell.
"In buying stock don't think of the fluctuations of the stock as that makes you a speculator. Rather, purchase with an eye to how good the stock will be 20 or 30 years from now, then put the stock away and forget it. I even think it's bad to look at the daily quotation," he said.
"News appearing in newspapers comes too late to be of use to the businessman who attempts to speculate for any possible fluctuation that has already taken place. A while back I read in the papers where the board of the Standard Oil company said it was a bad time to buy stock. That meant that Standard Oil was buying oil stock. I bought some oil stock and it did all right. In buying stock the businessman wants to invest, not speculate," he explained.
Advisory Group Of KU Senate Is Strengthened
The University senate approved a resolution re-emphasizing the duties of its advisory committee but took little other action on proposals to change the senate's powers and composition.
By a narrow margin it was voted "that the senate advisory committee be regarded as having the duty of being aware of, and of considering, and of calling to the attention of the senate for the purpose of further discussion, such current major problems of policy as affect the University as a whole. ."
The special meeting was called Tuesday to consider recommendations made to the senate advisory committee by the local chapter of the American Association of University Professors.
Opponents of the resolution contended the committee already had such duties and no other admonition was necessary.
1,320 Acres In Missouri To Finance Medical Study
Three proposals to increase the senate's powers, which would have required approval by the board of regents to become effective, were voted down in "package" form. The majority expressed the fear that by assuming such authority the senate would incur administrative obligations which the member teachers did not wish to assume.
A request for senate participation in budget making was rejected. The advisory committee was instructed to clarify by recording recommendations that state faculty establish faculty personnel standards and to consult and recommend on the general policy regarding schools, divisions, bureaus, museums and publications.
Business Group To Hold Dance
No action was taken on a proposal to reorganize the senate into an all-inclusive faculty body to be called the University assembly and to have a smaller, elective senate. The president of faculty members with the rank of associate professor or higher plus certain heads of divisions.
A dance will be held Friday by Alpha Kappa Psi, professional business fraternity, at the Lawrence Country club.
Land totaling 1,320 acres has been given to the University Endowment association by Dixon Fagerberg, investment banker, Prescott, Arizona. The land is located in a river bottom in Carroll county, Missouri, and Irvin Youngberg, secretary of the association, says that it is believed to be worth about $50,000.
John Ise, professor of economics, will discuss his trip to Denmark this past summer at the next meeting in the Pine room of the Union building on Wednesday, Nov. 9.
Net income from the land wn go to the Dixon Fagerberg fund for medical research at the University of Kansas Medical Center, Kansas City, Kan. Mr. Fagerberg established the fund about a year ago when he gave a cash gift of $1,000 to the University and followed it with two other gifts of $500 and $1,000 each.
Mr. Fagerberg's only previous connection with the University was through a neice, Verne Wagner, '31, now Mrs. Howard B. Bratton, Waco, Tex. At that time, he wrote
Mr. Fagerberg was born in Olsburg, Kansas, but has spent most of his life in Arizona. He visited the campus briefly the post month.
Net income from the land will
to Dr. Franklin D. Murphy, dean of the School of Medicine, saying that he had read in the Kansas City Star of the work being done at K.U. and that he wanted to help.
Money donated by Mr. Fagerberg has been used so far for the study of heart disease in children.
Five Organizations Receive ASC Funds
Five organizations were voted $625 by the All Student Council Tuesday night. Three requests for funds were turned down, and one was tabled.
Freshman Vote Slow Early Today
Voting in the freshman election was slow this morning and there appeared to be little interest in the first election in which there has been no organized independent opposition to Pachacamac candidates.
At 10:30 a.m. 74 votes had been cast. The total number of freshmen studied was enrolled in University 1, 183 and 766 freshmen voted out, a total of 1,803.
Only men may vote on the candidates for men's A.S.C. seat and only women may vote on women's A.S.C. and A.W.S. senate seats. Both groups are permitted to vote on the class officer candidates.
Polling places are set up in the east and west basement wings of Strong hall and Marvin hall. The paws will be open until m. to-day.
Up for election are the men's and women's A.S.C. seats, class officers, and a representative seat to the A.W.S. senate, the president, treasurer, and men's A.S.C. seat will be filled by freshmen; men will be voted-in as secondary, women's A.S.C. and A.W.S. senate seats will be filled by women.
Votes will be counted in 210 Strong hall tonight by the elections committee of the A.S.C. and representatives of the political organiza-
Dr. James W. Drury, assistant professor of political science, is election faculty advisor and will work with A.S.C. officers in supervising the count of ballots.
Storm Kills 27 In Philippines
Manila, P.I., Nov. 2—(U.P.)-Twenty-seven persons were reported killed in a tropical storm which swept through the central Philippine islands today.
The 27 fatalities were reported in Cebu, Iloilo, Negros and Occidental provinces.
Sergio Osmena, Jr., son of the former president, was quoted as saying on his arrival from Cebu that damage on that island alone was estimated at 25 million dollars.
Cebu city on Cebu island reported that more than 50 houses had been topped and galvanized steel roofs from some of them were tossed more than 600 feet by the strong winds.
Cebu, second largest city in the Philippines, has been without power since Tuesday night.
The latest bulletin said the center of the storm would move to the south China Sea, reaching a point 340 miles west southwest of the island of Mindoro tonight.
The storm started east of Mindanao in the South Philippines Tuesday. It moved northwest across the islands of Bohol, Cebu and Panay.
A dispatch from Bacolod on the Negros island reported that the provincial hospital was flattened, the wrecked and the rice crop damaged.
Manila, capital of the Philippines on the Northern island of Luzon, did not feel the brunt of the storm. A heavy rain fell there.
The nine appropriations requests handled were:
Ernest C. Friesen, A. S. C. president, was given a unanimous vote of confidence. Donald Giffin, chairman of the auditing committee, recommended that the A. S. C. disregard the freshman election as any mandate of students on the question of salaries for the president, secretary, and treasurer of the Council.
The Engineering council received $150.
International club received $100.
Student Statewide activities received $200.
Mortar Board received $100.
Associated Women Students received $175.
Budget for the four issues of the Jayhawk magazine, the six issues of the Bitter Bird, the first issue of the Junior class dance were approved.
The intramural board had requested $300 to pay for sending teams to near-by schools but was refused any appropriation on the grounds that the council should not pay for its activities off campus.
Women's Rifle club was refused an appropriation because the A. S. C. felt that student funds should not be appropriated for equipment for this group.
The Owl society was refused its request for $127.50 on the grounds that program submitted to the finance committee was not complete enough on which to base an appropriation.
The request of Forensic league was tabled for two weeks after a statement by its president, Robert Bennett, that the representative to the jury was inaccurate some changes in the request may be in order.
Joe Bailey, third-year law student, was appointed chief justice of the student court, and Laired Campbell, third-year law student, student prosecutor. The five justices chosen were: Allyn Browne, College junior; Darrell Havener, third-year law student; Marvin Rowlands, journalism senior, Patrick Thiessen, second-year law student; and Marie Schumacher, education junior.
The Council passed a revised bill setting up a student disciplinary committee, Chancellor Deane W. Kennedy, a bill on this subject the past year.
An amendment to the bill setting up the Campus Chest provides that distribution of receipts shall be made by the steering committee, subject to approval by the Council. It also provides that $150 of the receipts shall be set aside for administrative expenses, and that any of this amount not used shall be returned to the Chest funds. The same amendment provides that 10 per cent of the receipts shall be withheld for distribution in emergency circumstances.
A second amendment to this bill states that the steering committee may refuse to let any charitable or health organization which does not participate in the Campus Chest drive later solicit students on campus.
The petition of Mary Louise Fischer, education junior, to fill the vacancy left by Barbara Glover, representative from district three, was annahanced accepted. George Burton, business senior, was sworn in as representative.
It was announced by Arthur Francis, chairman of the parking committee, that 1,302 parking permits have been issued this year.
The Council voted to pay Student Union activities $100 as the A.S.C.'s share of the Jayhawk Nibble.