FORECAST — Wilmington and vicinity: Clear to part ly cloudy. Slightly cooler today and to night. VOL. 79—NO. 42. ~ _ESTABLISHED 186T Arthur Perry Hurt As Car Strikes Bike INJURIES CRITICAL 13-Year-Old Boy Suffers Broken Leg, Arm And Fractured Skull Arthur (Artie) Perry, 13-year-old gen of Mr. and Mrs. Albert F. Perry, 107 Mimosa Place, was critically injured last night at 6:15 o'clock when the bicycle which he was riding, was struck by an auto mobile. He was taken to James Walker Memorial hospital where attaches said late last night that he had no recovered sufficiently from shock to give any definite report on his condition. The accident occurred one mile east of Oleander Courts apts., on the New Wrightsville highway. The car which struck the Perry boy, was being operated by Harmon Farrow, Route 2, Wilmington, of ficers said. The Perry boy who was accom panied on another bicycle by Oliv er Hirtaff, Jr., son of Mr. and Mrs. Oliver Hutaff, 109 Mimosa Place, suffered a broken right arm and richt leg and compress fractures tf the skull. i • . i __TTlnnierc CCUI U1IL5 L'-' *»t***~»* of the State Highway department, Farrow said that the boys were aooarentlv traveling east, and that when he first saw them the Perry bov who was riding to the rear was placed so that the front left fender of his machine struck young Perry, knocking him from The bi cycle. 'Young Perry also hit the head lamp, and the impact on the wind shield knocked a hole in the left side. The bicycle was crushed un der the car. Farrow is also reported! to have slated that his car was operating at about 35 miles an hour speed at the time of the accident. He said that when the car struck the Perry youth, he swerved it hard to left in time to avoid injury to the Hutaff boy. The bicycle on which young Hu- j faff was riding, was struck by the car. Farrow stated. Passengers in the Farrow car said that another car facing them caused poor visibility. Farrow received a deep lacera tion on his chin, supposedly caused by broken glass from the wind shield. No arrest was made. VAR BOND DRIVE IH STATE FAILS TO REACH QUOTA WINSTON-SALEM, Dec. 31.—OP) —The Victory Loan Campaign e’o.-ed tonight with Norih Caro lina $4,300.00 short of its “E” bond goal on the basis of tabula tions thus far. However, a deluge of remittances from bond issuing agencies reach ing the Federal Reserve Bank of Richmond today—and as yet un counted—brought new hope that the I ouola may be reached, State War Finance Chairman Clarence T. Leinbach said. Leinbach, in announcing “E’’ bond sales reported through De cember 29 totaled $25,700,000 as against a quota of $30,000,000, called on county chairmen to con tact “every bond issuing agent and see that reports are sent in immediately.” Gordon Doran Named As Interim Coroner Gordon Doran was sworn in as acting coroner of New Hanover county yesterday afternoon at 4 o'clock, in the offices of M. L. Meyland, clerk of superior court. Doran will serve during the ab sence of deputy coroner, E. L. Strickland, who will leave Friday Jan. 4 to attend a three week busi ness meeting in Chicago, 111., and Grand Rapids, Michigan. PROBE REVEALS SHORT REPORT _ __ *5 WASHINGTON, Dec. 31.—(U.R) Lt. Gen. Walter C. Short, 1944 Army commander in Hawaii, thought the first bomb dropped by Jap raiders on Pearl Harbor was a Navy exercise, but the second one convinced him “something was seriously wrong,” it was dis closed tonight. Short’s testimony before the Ro berts commission, and the sepa rate inquiries conducted by spe cial Army and Navy boards, — not before disclosed—told his story of the disaster, and his disclaimer of responsibility for unprepared ness when the sneak attack came. The voluminous reports were made available today to the joint. Congressional Pearl Harbor in quiry, although Short, now a major general and retired, has not yet been called to testify. Short disclosed that when the at tack took place at 7:55 a.m. Hono lulu time, Dec. 7, 1941: ‘‘I was in my quarters. When I heard the first bomb explode, I thought that the Navy was prob ably carrying out some exercises that either they had not told us about, or that I had forgotten about. ‘‘When the second explosion took place, I was out on my back porch where I couli next door, ran i. ^9" -oor and called to me of* , it is the real thing. We *, "^just had a message from HickmA\ Field.’ “That was probably two or three minutes after 8 when he came in and notified me. By 8:10, all major Echelon commanders had been told to go into alert number 3, and everything was under way. The first plane of the enemy, I think, was brought down at 5 minutes after 8. So you can get an idea of the length of time it took to ge't into action.” Short said the anti-aircraft had skeleton crews at all of their guns. The three-inch guns had ammuni tion available 55 yards away. Four batteries were in position, but they hgstitated to leave their ammuni tion in the open while the raid was on. As soon as the atttack took place Army intelligence (G-2) and the FBI began rounding up enemy agents, Short said. They rounded up 370 Jap agents, 98 German and 14 Italian. They could not find four (Continued on Page Two; Col. 3) Hospital Plan For Vets May Be Started In City OFFICIALS CONFER Galloway, Representing Lo cal Legion Post, To At tend Washington Meet “Wilmington may become a “trial community” under the Blue Cross plan, Ray Galloway, execu tive director of the local Ameri can Legion, wired the Star last night from Charlotte. This information came follow-1 ing a meeting in Charlotte yester day at which time Galloway met with members ©!, the State Medi cal Society, state Legion officials and members of the Veterans Com mission. • Galloway explained a meeting will be held in Washington, prob ably later in the week, with Vet erans’ Administration officials at which time he, with two members of the State Medical Society and Wiley Pickens, director ofv the State Veterans Commission will ask for immediate action on the proposed plan. The meeting was attended by Dr. Oren Moore, president of the State Medical Society; Dr. O. L. Miller, member of the society and president of the National Orthope dic Association and Dr. Preston White, also a member of the so ciety. Also, attending Were Robin Kir by of the state commission, Brown Wilson, Gastonia, vice-commander of the state Legion, Pickens and Galloway. The meeting was held in the home of Dr. Moore. According to Galloway the meet ing was a complete success with all present being in accord with the proposed plan for medical treatment and hospitalization of veterans. The group is requesting immedi ate adoption of the proposed plan in North Carolina with Wilmington being used as a “trial center.” It is the plan of the group to confer with Major Gen. Paul R. Hawley, acting surgeon-general of the Veterans Administration, who, in a reply to the local Post’s pro posal of the plan Sunday said he would welcome an immediate meeting with members of the group. The local Legion, through Gallo way and Don King, commander, contacted Gen. Omar Bradley, di rector of the VA last Friday night with the proposed Blue Cross plan, asking that Wilmington be used as a trial community for the plan, which they suggested, could be .ised under a state-wide setup. (Continued on Page Two; Col.^4) Hill Says He Will Return To Customs Office Here The following statement by Col John Bright Hill was released t< the Star last night: "1 am still Collector o Customs on military leavi without salary; millions of dollar; have been collected in my nami during my absence; Mr. Rawlyn was acting Collector and Mr. Sneai now in charge and will be act mg Collector until I am releasei Rom the Army. I was appointed fo a term of four years in 1941 am on March 1st, 1942, I was callei “fro the Army as a Major in th Reserve so would have approxi , mately three years to serve. It i not necessary that I be reappointe as I only want to serve out th hajance of my appointment whic' 'V , was interrupted by my military i service. I think this was the in tention of Congress when it passed the Soldiers and Sailors Civil Re lief Act and there is no distinction drawn in this act between regulai civil service employees and Presi dential appointments that were con l firmed by the Senate. “A great many of my friends 1 have told me during the Christmas ; holidays that they have indorsed l other candidates for the positior 1 as they were told that I was no1 s going to return to Wilmington and - had accepted a commission in the 3 Regular Army. There is no founda 1 tion for this statement as I d< 5 intend to return to Wilmington with i in a very few weeks! iCITY UNAFFECTED BY HOUSING BILL H. R. Emory, executive director of the local housing authority, said last night that enactment of legis lation authorizing the National Housing Agency to spend $160,000, 000 to provide temporary housing for veterans would have no effect on the local housing situation. When President Truman signed the housing legislation yesterday, -he authorized the National Housing administrator to acquire all surplus housing owned by govenment agen cies and transfer them to localities where veterans are in heed of housing. “We have 1,275 demountable housing units—800 in the Vance section of Maffitt Village, and' 475 in Lake Forest—but they are not surplus units. All of them are filled and we have a long waiting list,” Emory said. Because the legislation includes only an appropriation for purchase of housing units which can be transferred to needy sections, Emory said it “will not 'have the slightest effect on this housing authority.” Under the bill, which President Truman signed while aboard the presidential yacht, Williamsburg, the Federal Government will reim burse cities, states, towns and uni versities which already have bought government-owned housing units. Before housing can be declared surplus, a large percentage of the units must be vacant. Present capacity tenancy in the demount able units, only units affected by the legislation, also rules out any possible effects of the new law, Emory added. . i NOW GENE MARKEY ADDS MYRNA LOY TO BRIDAL LIST HOLLYWOOD, Dec. 31 — (U.R) — Commodore Gene Markey, 50-year old movie producer and Actress Myrna Loy, 38, got a marriage li cense today but said they couldn’t set the date until they learn when Adm. William F. (Bull) Halsey can serve as best man. Markey, who said he was as hervous as he had been in Naval combat, said he expected to be able to announce their marriage date tomorrow. The couple have been keeping company for a year. “I’m very happy to have him back from service,” Miss Loy said. “We have a home planned and ex pect to be married within the next few days.” , WEATHER (Eastern Standard Time) (By U. S. Weather Bureau) Meteorological data for the 24 hours ending 7:30 p.m. yesterday. Temperatures 1:30 a.m. 51; 7:30 a.m. 56; 1:30 p.m. 56, 7:30 p.m. 48,9. Maximum 67; Minimum 48; Mean 53 Normal 47 Humidity 1:30 a.m. 94; 7:30 a.m. 97; 1:30 p.m. 58 7:30 p.m. 69. Tresipitation Total for 24 hours ending 7:30 p.m.— 0.12 inches. . Total since the first of the nw*th 6.60 inches. Tides For Today (From the Tide Tables published by U S. Coast and Geodetic Survey) High Lose Wilmington _ 8:26 a.m. 3:08 a.m 8:37 p.m. 3:35 p.m Masonboro Inlet 6:17 a.m. - a.m 6:20 p.m. 12:32 p.m Sunrise 7:18 a.m.; Sunset 5:14 p.m. Moonrise 5:37 a.m.; Moonset 3:50 p.m. River Stage at Fayetteville at 8 a.m Monday, (No Report), feet. • FIRST PEACETIME BINGE SINCE 1941 WILDEST FOR V. S. ■■ NEW YORK, Dec. 31.—(U.R)— fl' « wildest, noisiest and cost New Year’s Eve celebra Z* aO wept across the Nation to with New York’s famous limes Square bursting with a mass of delirious humanity as it never had before. More than 2000 policemen were on hand in the Square to keep the revelry—first New Year’s peacetime binge t’r,ce 1941—In check. Wet weather here aiid snow, and slush in many cities . tiled to dampen the roaring welcome for the New Year, And in keeping with the wea ther. The merrymakers were run ning up probably the greatest drinking tab since the end of prohibition. New Yorkers by the thousands paid $10 to $35 in advance for the privilege of sitting down in a smoky night spot—with no drinks oh the • house. A new night club opened for a near capacity house with the minimum tariff at $15 a couple. From glittering, packed Broadway to Chicago’s loop and San Francisco’s Market street, cash registers of night clubs, bars and just plain sa loons played an accompani ment to hilarious voices and blaring horns. Usual OEA ceil ing prices were lost in the rush. VETS PROTEST . STUDENT FEES Local Ex-Servicemen Brandi Tuition Charge At UNC A* “Inequality” Four Wilmington veterans whose combined service with various branches of the armed forces totals almost nine years last night pro tested what they termed “inequali ty in tuition fees of the Univer sity of North Carolina.” Pointing out that, their education as returned veterans is costing more than if they had entered as students without war services thg four expressed their Conviction that the situation was being duplicated in state universities throughout $he nation. - As returning veterans their edu cation is paid for by the so-called G. I. Bill of Rights. Under the bill each returning veteran is allowed $500 for tuition, and $65 jjer month for living expenses. _ .However, sincq their tuition and expenses are .being paid by Jhe federal government their fees Are more than that of a native of North Carolina. Under the classi fications adopted by the university, natives of the state pay a fee 'of $26 per quarter, natives Of states with which North .Carolina has re ciprocal agreemfents, $58 a quarter and all other students, $96. “Because our fees are paid by the federal government,” one of the veterans told the Star, “We are charged the highest figure even though our parents have liv ed here all their lives and have paid taxes to help support the university.” All four said at the rates demand1 ed by the university it would be impossible for them to gain their education without some form of aid. “We know it is legal,” another of the veterans said. “Under the provisions of the bill there is nothing we can do, but we express our disfavor of a policy that pen alizes a man because he served his country.” The four veterans who made their protest to the Star were: Charles T. Jordan, graduate of the New Hanover High schol in 1942, 22, of 123 Brooks avenue'; Kenneth R.’ Bland, graduated from NHHS in 1942, 22, of 209 Dock street; Charles E. Sasser, 19, graduate of NHHS in ’44 and Emile . Saleeby, 1922 Wolcott avenue, graduate of NHHS in ’44 and Emilem. Saleeby, Jordan and Bland were second lieutenants in the air. corps, Sas ser a corporal in the Signal Corps, and Saleeby a staff'sergeant in the troop carrier command. Truman Names New Board In Move To Avert Strike; Cut In Taxes ‘Boosts Pay’ hew Revenue Ad To- Help Wage Earner BUSINESS AIDED $$,900,000,000 Tax Re duction Measure Becomes Effective To Millions WASHINGTON, Dec. 81—(?) — Wage earners get a "pay raise” and big business a windfall tomor row ,wheji new tax cuts become ef fective. Under the $5,900,000,000 (B) tax reduction bill passed in November, both big and little taxpayers bene fit and about 12,000,000 people with very low incomes stop paying any taxes. The tax collector will claim a smaller chunk of the incomes of the 35,000,000 to 38,000,000 individ uals left on the tax rolls. So ex tra dollars will start appearing in paychecks received on or after New Year’s day—even though the pay is for time worked in 1945. For example, under the reduced tax rates, a man with no depend ents. who makes $50 a week has had $8.20 withheld for taxes. This weekly deduction will drop to $6.80. Persons in higher wage brackets arid those not subject to withhold ing will feel the difference when they file statements of their 1946 taxes and' make their quarterly payments which-are due March 15. The new law, first general tax cutting measure passed by Con gress in 16 yerirs, is designed to reduce taxes of individuals by $2, 644,000,000. (B). Repeal.of the au tomobile and boat use taxes in June will add another $140,000,000 of relief. At the same time, lower cor poration tax rates and repeal o thp excess profits tax are expectei to reduce business taxes by $3, 136,000,000 (B.) The excess profits tax, which ex pires at midnight tonight, was imposed before Pearl Harbor anc by 1943 had risen to a flat rate o: 95 per cent. More than $28,000,000, 000 (B) has been collected througl it. ! It was imposed' to prevent busi ness from getting rich out of the war and applied only to corpora tion earnings above “normal” as computed op a 1936-39 average The corporations tomorrow rever to paying only' the regular cor poration tax of 38 per cent. Thus industry can keep a much biggei slice of its profits. The treasury tomorrow alse starts paying out $1,112,000,000 (B; in excess profits refunds by re deeming non-interest, non-nego tiable bonds. This represents onlj a part of the total to be refunded Tax refunds will be available tc all industries that suffer losses or operations in 1946 and to those which paid excess profits taxes ii they show smaller profit in 194f than they averaged from 1937-39, with certain restrictions. It is possible, therefore, that the Treasury may have to pay out money to reduce losses of some firms which may suffer losses from strikes. Hope has been expressed that another $5,000,000,000 may be lop ped off individuals’ taxes next year, although wars generally have left taxpayers saddled with per manently increased costs of gov ernment. Hirohito Tells Nippons He Really Isn’t Divine By RALPH TEATSORTH United Press Staff Correspondent TOKYO, Tuesday, Jan. 1.—(U.R)— Emperor Hirohito told his 80,000, 000 Japanese subjects today that, contrary to what they have been taught all their lives to believe, ho is not divine. In his first major imperial re script since the occupation of Japan began, he repudiated as a “false conception" the belief, embodied in state Shintoism and fostered by Japanese militarists, that the emperor is a divinity. “The ties between us and our people have always stood upon trust and affection,” he said. “They do not depend upon mere legends and 1 myths. “They are predicated on the false conception that the emperor is divine and that the Japanese people are superior to other races and fated to rule the world.” The emperor also admitted frank ly that Japan had lost the war. “We feel deeply concerned,” he said, “to note that consequent upor the protracted war ending in oui defeat, our people are liable tc grow restless and to fall into a slough of despond.” He warned against a spread of “radical ten dencies.” In calling upon his subject? tc forget their “master race” ideas he summoned them to work to ward a “throughly” pacific Japar and toward a "love of mankind.” SALE OF BUILDING NEAR MMPLETIOf Distributing Company T< Purchase Old Willard Bag Co. Plant Negotiations by State Distribut ' ing company for the purchase o the old Willard Bag company, 42' Martin street, from Howard A Penton today were virtually com plete, it was learned last night. Allen M. Furman, a partner ii the firm, said last night that. th< company, which distributes bee: and wine, plans an expansion pro gram here “as soon as material: are available.” The expansioi planned, he said, applies not onh to the company plant but also t< the number and volume of product: which will be distributed through out the Southeastern district o North Carolina. “Our company foresees a grea future for this section of th( State,” Furman said. Since Feb., 1941, State Distribut ing company has leased the Wil lard Bag company building, whicl has 6,500 square feet of floor space The lot or which the one-storj building stands, approximately 30, 000 square feet in area, is alsc included in the sale of the property FISHHOOK WIVES WASHINGTON, Dec. 31—(£>) —A bargain-driving yank on a lonely Pacific isle tossed his headache into the lap of the Veterans Administration on New Year’s Eve — what to do about his wives (plural). “I got three or four by trad ing fishhooks and things,” he wrote. “I believe I coujd get a dozen or so more.” First, he said, he wanted to know if he could bring some of the wives home with him and take them to college. "I intend to go to the Uni 1 versity of Michigan or some other midwest college and thought I might be able to col S lect extra money under the GI Bill of Rights,” he wrote. “I’ve heard a married man gets $15 a month more than a bachelor going to college. Could I col lect $15 for each wife? TAR HEELS ASKED I FOR COOPERATION j mGov. Cherry Urges All Elements Of State To Help Meet Future RALEIGH, Dec. 31—WP)—In his E annual New Year's message to the • i residents of North Carolina, Gover • nor Cherry tonight called for cordial • labor-management relationship dur ing the coming year, and urged that , the housing shortage and veterans’ , problems be solved successfully. “As the last grains of sand run out for the year 1945 and as the world moves into a New Year, 1 I share with all my fellow North i Carolinians a feeling of Thanksgiv •! ing for what the old year brought , us and an uxpec ant hope for what ; lies in the year ahead,” he said. “History will record 1945 as the ' year of peace after total war, as the year of the lifting of the veils ; on the universe of atomic energy, ■ and as a year of great transition and change in the lives of most people throughout the world. At such a time and in such an era great demands will be made during 1946 on the energies, the patience and the talents of our people. Our problems are many and their solution will require the best that (Continued on Page Two; Col. 2) ■—-— Steel Union Sets Walkout For Jan. 14 700,000 AFFECTED President Asks OPA To Determine If Price In creases Are Justified WASHINGTON, Dec. 31.—(U.R>— President Truman tonight appoint ed a three-man fact-finding panel to investigate the wage dispute in the steel industry and ordered the Office of Price Administration to determine if any price increases are justified. Moving to avert a walkout by the United Steel Workers (CIO) in their wage dispute with the United States Steel Corp., the President asked the OPA to report by Feb. 1, so that the findings of his steel panel can be made public by Feb. 1. The union has scheduled a walk out for Jan. 14. The OPA is authorized by the President ■ to review current steel prices to see if any increases would be “proper.” Benjamin J. Fairless, president of U. S. Steel, has refused two invi tations from labor Secretary Lewis B. Schwellenbach for conciliation conferences, saying it was “futile” to discuss wage demands without a guarantee of price increases to meet any pay boosts granted work ers. Appointed to the special panel were: 1. Associate Justice Roger I. McDonoUgh of the Utah Supreme court, who has served on railroad emergency boards in the past. 2. Chief Justice James M. Doug las of the Supreme Court of Mis souri. 3. Nathan P. Feinsinger, former public members of the expiring War Labor Board -J The union, headed by CIO Presi dent Philip Murray, has demand ed a basic wage increase of $2 a day. Negotiations broke down last [October and U. S. Steel has refused to renew them until a price guaran tee is received. The nation’s other 1,400 steel {corporations also have rejected the $2-a-day increase demand. The wage pattern for the industry us ually is set by negotiations with U. S. Steel. (Continued on Page Two; Col. 4) S • USUAL OBERVANCE ; MARKS YU’S END The year 1946 was ushered in ., last night along with chilly winds , while Wilim-ngtonians celebrat ed in various ways throughout the ’ city. Many of the churches holding " mid-night services with special mu ; sic and programs drew large at *• tendance last night as others wel comed the new year amid the ; usual din of firecrackers, hom 5 too'ing, whistle blowing and gen 5 oral ruckus of noise that tradition > ally ushers out the old year and > greets the new. t Many private parties were held t in the homes, clubs and night spots, i where a warm greeting of the ; new year was celebrated. : With the first day of the year ob • served as a holiday, all city, coun ■ ty, state and federal offices will : be closed today. Employes, how. ever, will work Saturday to make up time. 11946PaintedRoseate Hue ! By Leaders In Wilmington By JOHN SIKES Star Staff Writer The dawn of the New Year wasn’t observed by most of us this morn ing, just as it hasn’t been observ ed by the most citizens of the world for the passed 1946 years. Mid-morning today, however, will doubtlessly be observed by a large group making creaking obei sance to the medicine cabinet. This group will resolve, with a plaintive moan, never to be forced to look for bromo and aspirin again. Statis tics show these resolutions some times outlast the f!zz in the bromo. There are those here, however, who do not resolve friolouslv and who have made plans for the New Year, plans underlined wnth sound ness yet possessing the hopeful i qualities of resolutions. Taking them by and large, these plan* and hopes comingle into a compo site picture that is definitely bright for Wilmington and New Hanover county—and, Indeed! — for all o< southeastern North Carolina for 1946. _ For instance, E. L. White, presi dent of White Ice Cream and Milk company, is hoping that the litua tion which has caused rather leri ous shortages in dairy product* In the area for the past few years may be eased during the coming 12 months. But White's hope is no idle and empty resolution. He has al ready started doing something about it. (Continued on Page Two; Col. *5)