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PAGE WO Er? i i ■t I*- I 4. 4 i 4 tfrs' I & i t. 4 ft 1 Lattimore Labeled Russian Spy To, Sue Senator McCarthy For Libel By ALVAINE HAMILTON Washington (LPA)—Faced with a libel suit by the man he’d labeled as the "top Russian spy in the Estate Dep’t” and a demand that he retract, Sen. Joseph McCarthy (R, Wis.) is fighting hard to extricate himself from his web of accusations of Communist infiltration of the department now under investiga tion by a Senate Foreign Relations subcommittee. Two additional Mc Carthy targets, Esther Caukin Brunauer and Naldore Hanson both department employes, appeared be fore the subcommittee to deny the accusations, and make impressive documentation of their loyalty. In addition Chairman Millard Tyding (D, Md.) announced that the committee had agreed to re ceive written questions from “any person” bearing on the Communist charges, and to permit those ac cused by McCarthy to ask questions by submitting them in writing to members of the subcommittee. Some days after Sen. McCarthy had revealed the name of his “top Soviet spy in the State Dep’t” to the subcommittee and “off the re cord” to reporters, several radio commentators and newspaper writ ers finally let the public in on the big secret—that the big “spy” was none other than Owen Lattimore, now a professor at Johns Hopkins University, and at present in Afghanistan on a United Nations Mission. Lattimore was a State Dep’t adviser for four months five years ago, but has not been on the department payroll since then. Mrs. Lattimore announced that she had retained the law firm of three prominent anti-Communist liberals Paul Porter, one-time OPA administrator, Abe former under-secretary of terior Dep’t, and Thurman former assistant Attorney —to defend her husband’s tion. They wrote McCarthy term ing the charges a “colossal lie," called on him to withdraw them, and warned that in any case this wouldn’t free him from a possible libel suit when Lattimore returns to the US. Fortas, the In Arnold, General reputa- In addition, talk that charges of improper conduct might be made in the Senate against the gyrating McCarthy began to receive wide currency in the Capitol. So far, McCarthy, despite early protesta tions that he’d repeat any of his direct accusations of individuals off the Senate floor, where they wouldn’t be libel-proof, hasn’t made one such charge. Citing precedents dating back to George Washington’s day, Attor ney-general J. Howard McGrath and FBI Chief J. Edgar Hoover appeared March 27 to explain why a they left to President Truman any decision bn making available the “raw” files of the FBI cases of Suspected subversives. Most telling point was made by McGrath, when he said that 98 per cent of the cases in which firm evidence of illegal action is found are turned over to the proper law-enforcement agency for prosecution. The other two pel cent are cases where the FBI is -seeking a “ring” and they string along with the suspect to find his accomplices. Neither the Senators nor the Justice Dep’t officials said directly that this proved Lattimore innocent, but the strong impression ,waa left that the FBI didn’t con sider it had any type of “spy” case against him, as McCarthy has in sisted the files would reveal. -On both sides of the aisle, lead ing Senators hailed a leter to the New York Times from former Sec retary of State Henry Stimson, charging that the McCarthy accus ations are not aimed at ridding the State Dep’t of Communists, but “to cast discredit upon the Secretary of State.” Stimson, a member of the William Howard Taft, Hoover, and Franklin D. Roosevelt cabinet*, 1 ■A WE ABE EQUIPPED TO RENDER COMPLETE FUNERAL AND AMBULANCE SERVICE I I' PROMPTLY MARTIN FUNERAL HOME 385 145 WmI Filth St. Pboue OHIO end WEST VIRGINIA LICENSE I iHibcMiaoioiemoi^^ mnnmflinwriiaeio^^ k said “the man w’ho seeks to gain political advantage from personal attack on a Secretary of State is a man who seeks political advantage from damage to his country.” In a stinging rebuke to McCar thy’s whole performance, the elder statesman warned that “This is no time to let the noisy antics of a few upset the steady purpose of our country or distract our leaders from their proper tasks. This is rather a time for stem rebuke of such antics and outspoken support of the distinguished public servants against whom they are directed.” Meanwhile, another of those ac cused by Sen. McCarthy of disloyal ty, Mrs. Esther Caukin Brunauer, a member of the State Dep’t UNESCO staff, appeared before the subcommittee to deny that she is or has ever been a Communist or a sympathizer. She said she had confidence in the ability of the gov ernment to keep Communists out of federal jobs “without violating the traditional American principles of decency and fair play.” “Before I was given a hearing/’ she told the Senators, “my name was first divulged aa one who was about to be attacked and then was publicly branded as disloyal without having had an opportunity to speak in my own defense. In fact, Sen. McCarthy said on March 13 that I presented such a danger to the country that my case should be the ‘very first case’ to be inves tigated by this committee.” She added quietly .that, “after this statement had reverberated in the headlines for a few days 1 lost my priority and there is now another case which Sen. McCarthy claims is the number one case, upon which he is willing to stand or fall.” Letters from Admiral Standley, former chief of naval operations, ex-Republican Senator Joseph Ball,1 President Milton Eisenhower of Penn State College, and Kathryn McHale, executive director of the American Association of Univer sity Women, were presented at testing to Mrs. Brunauer’s inte grity and loyalty. Ball added that Stephen Brunauer her husband, a Navy weapons expert, “is perhaps' the most violently anti-Communist person 1 know.” In his youth, Brunauer, a native of Hungary who came here at 17, was for several years a member of the Young Workers League, but rapidly broke with the Communist youth group, and in 1982 he was denounced as a “deserter” of the Communist cause, she told the committee. She also described attempts that wen* re ported to her by friends inside the Hungarian Embassy to frame the Brunauers and thus discredit their work against the communist-run regime that canrte to power in 1947 in that country. Teamsters Given 40-Cent Pay Hike Sioux City, Iowa (LPA)—The Teamsters have won a 40-cent package increase for their General Drivers Local 383 from the Sioux City Brewing Co. The contract in cludes a 30-cent across-the-board pay hike for all employes. Here are the gains in the con tract, which runs to March 6, 1951: 30-cent general increase 40-hour week, Monday through Friday, and elimination of split shifts time and a half for Saturday work, double time for Sundays six paid holidays per year bidding of jobs and seniority list for each depart ment vacations of one week after one year, two weeks after three years 5-cent hourly additional dif ferential for lead wen who head work gangs an additional 5 cents for second shift and 10 cents for third shift continued maintenance by the company for the existing hospitalization, health and accident plan. Vice-president Frank Santi of the Local negotiated for the union. Karl Reul of Des Moines represent ed the international. The Teamsters hailed the victory ns demolishing the employer-in spired myth of a national “pattern" of wage gains of 5 to 10 cents, and pointed out the increased pay for Teamsters here means more sales for merchants and more consump tion of farm products. Ask for Union Labeled merchan disc. Money Loaned FOR PURCHASE AND IMPROVEMENT OF HOMES 5% Monthly Reduction The Potters Savings & Loan Co. WASHINGTON & BROADWAY EAST LIVERPOOL. OHIO OFFICERS: JOHN J. PURINTON, Preaidant CHAS. W. HENDERSHOT Vice Praaidaal ALWYN C. PURINTON. Secretary IOS. M. BLAZER. Treasurer W. E. DUNLAP, Jfl. Attorney Dignitaries Honor McFetridge OH Chicago.—State and municipal officials and AFL leaders honored William L. McFetridge, president of the AFL Building Service(Em ployes International Union, at a dinner celebrating his election as 13th AFL vice-president Shown in this group, front row, I. are John 8. Boyle, state’s attorney Cook County, Illinois AFL 1 resident William Green and Mr. McFetridge back row. 1. to r.. are Ruben G. Soderstrom. president Illinois State Federation of Labor, Mayor Martin H. Kennelly of Chicago and President William A. Lee of the Chicago Federation of Labor._______________________________ News and Views .... Rut having said that, let's pull up our horses and survey the sit uation. The principal factor behind these striking increases, as G.M. calls them, was inflationary pres sure never in American history has there been so much money in the hands of the people. But the value of our money also differs from that of the past the dollar, as far as purchasing power goes, has been cut in half or less living costs, as any housewife knows, are 70 per cent above those of 1939. These conditions are reflected in correspondingly high wages, pro duction and replacement expendi tures, and many other cost items which business must take into ac count. G.M. also spent $130 million last year for new plant facilities, equipment, etc., thus creating addi tional employment and business op portunities. Well, what are you driving at? readers will ask. Are you agin’ it? Don’t you want .everybody— workers, |nanagement and stock holders—to make a lot of dough 1 sure do, but 1 du not like to be fooled in .the process. Nor am 1 an xious to be takqn in by a lot of big but essentially meaningless figures. With materials, production costs, wages, etc., 2 to 3 times those of a decade ago, industry—and that is simple arithmetic as well as a mat ter of economic self preservation— must do three times the business of former year.'. This is prrvisely what has happened in General Motors and other corporations. Where G.M. did a business of le.-s than $2 billion in a pre-war peak year, it is now doing $5’i billion, or just as much more as its require ments demand. Profits must be correspondingly high, since a largo part of costs are relatively static and have to be met regardless of how well or poorly business is in a given year. Besides, high earning: siphoned off in crushing taxes en able Uncle Sam to live in the style t» which he and his bureaucratic family have become thesiyast 17 years. .... By ALEXANDER S. LIPSETT, (An ILNS Feature) The wizards of press and radio &------------------------------------ have been in a dither this past! a perspective is also necessary week over the volume of industrial business and profits in 1949. Com ment has ranged from sneers on the left to such compliments as fabulous and unheard of. Imagine 565 corporations in 26 major fields reporting a net income of 5 billion dollars, an awed commentator mused such figures have hereto fore been reserved for Washington. Far be it from me to object to those oh’s and ah’s or to belittle the new records hung up by industry during the past year. Indeed, the feat is such as to warm the heart of every American and make him boastfully proud of the country’s capacity to outproduce anyone, any where and at any time. But the situation calls for more than boast fulness. It calls for an analysis of this phenomenal growth and ap praisal of the factors behind it. Motors, we are informed $5.7 billion sales record, General rang up a earned a $656 million profit for its 434,000 stockholders, paid $1,440 million in wages to its 401.000 em ployes, and last but not least, shell ed out $880 million for federal, state and local taxation, including sales and excise levies. DuPont, General Electric and others have done equally well. The significance of these achievements not only to the people directly concerned but to the entire national economy is obvious. accustomed in of these fact.' It is in th* light that the advances of American in dustry in 1949 must be evaluated and presented to the people. The i bigger these advances in terms of both productivity and profits, th*' greater the advantage for the body economic and its components. Such TOE TOTTOfeS HERALD/ EAST LIVERPOOL, OHIO view of the forthcoming contract negotiations and the certainty that organized labor will press for higher wages and other benefits. Needless to say this column favors high wages and improved economic security. However, these gains must be grounded in real and ac tual conditions, not in a make-be lieve prosperity based on big talk and inflated figures. Tn short, what we need is a ma ture approach to the economic pro blems of the nation, not an exercise in mutual admiration and joyful back-slappirtg. Why the American press and radio fell flat on their collective faces in their interpreta tion of the facts of industrial life in 1949 is a question that cries for an answer. Perhaps the Washing ton soothsayers and peddlers of economic dope have one. House Lobby Probe Hearings Started Washington (LPA)—The House Lobby Investigating Committee, after months of preliminary inves tigations behind the scenes, opened hearing March 27. The first three days, announced Chairman Buch anan (D, Pa.) had been set asid for a academic in general and cracy. study of lobbying its role in demo- first witness was Slated as the Dr. Hadley Cantril, professor of psychology and director of the Of fice of Public Opinion Research, Princeton University, to discuss the factors that influence public opin ion. Second witness was Dr. Step hen Kemp Bailey, author of the re cent book “Congress Makes A Law”, to tell what he told in that book—the role lobbies played in the enactment of the full employ ment law of 194G. For March 28 the committee scheduled a round-table discussion on “The Theory of Identification and, or, Regualtion of Lobbyists by Legislative Bodies in the United States”. Scheduled to participate were: Dr. Edgar Lane, instructor on politics, Princeton Dr. Belle Zeller, political science professor at Brooklyn College and author of “Pressure Politics in New York” Dr. George Galloway, legislative reference service and one of the authors of the Congressional Reor ganization Act of 1946 which en acted the present lobby law and Dr. W. Brooke Graves, also of the legislative reference service, and author of a special study of the ad ministration of the lobby registra tion law. ASKS FUNDS TO STUDY WOMEN’S PART-TIME JOBS Washington (LPA) Wo n workers have a special stake in getting enough money appropriat ed by Congress to allow the Women’s Bureau of the Labor Dep’t to do an adequate job, Mrs. Margaret Coffin told a Senate Ap propriations subcommittee. Speaking for seven national women’s organizations including the YWCA, Nat’i Consumers Lea gue, Nat’l Women’s Trade Union League, ami American Home Econ omics Ass’n, Mrs. Coffin urged that enough money be appropriat ed for a study of how women could successfully manage part-time jobs along with hoinemaking duties. Local Groups Gan Aid Unemployed' AFL Points Out Washington (LPA)—One weap on with which to combat the spreading menace of unemployment is the local full employment com mittee, AFL economists say in Labor’s Monthly Survey. In 43 areas 12 per cent or more Of the labor force is out of work, the A FL reports pointing out “there is ho prospect that business activity will increase enough in 1950 to restore full employment.” The only way to stop the growth bf unemployment, the survey con cludes, .is through local full em ployment committees, which have eased the Situation in a number of Communities. A full employment committee, often named by the local mayol, brings labor and business together at the conference table .to lick a common problem. Its first job is to survey local needs and potential ities. In one hard hit western city, such a survey is producing a new radio station, a new motel for tourists and a new woodworking plant is already in operation, using local lumber. A local man with Capital put up $60,000 for the motel. A carpenter put his savings into the woodworking plant and be came its manager. In a north central city, three new plants will soon be in opera tion through the efforts of a full employment committee. Two firms in another city nearby were in duced to buy two idle defense plants which will employ 400 per sons in the manufacture of new products. Another firm will employ 100 in a chemical plant. In a southern city, a new’ plant is.being set up to make a new light weight building block called “shal itc”, processed from local shale. In an eastern community, a full em ployment committee found a way for a rubber company which was about to close to stay open. In an other small town, enough money was raised in a mass meeting to build a factory. Then a shoe com pany was found that wanted the space. The shoe company now em ploys 400. In one town, a man needed $10, O00 to open a small business. The local bank turned him down, but the full employment committee /ound the money among citizens eager to create jobs for fellow townsmen. These are only a few examples. Hmong tnany, the AFL says, urg ing the creation of more full em ployment committees at both state and local levels. Asks Regulation Of Insurance Go’s Washington (LPA) Chairman Celler (D, N. Y.) of the House monopoly investigating committee has called for federal regulation of the insurance companies. He cited as evidence of their growing power the announcement by the Equitable Life Assurance Society that it will buy freight cars and rent them to the railroads. “Standing by itself,” Celler said, "this proposal appears sound and should be most helpful to the rail roads, most of which are in fin ancial difficulties. It points up, however, the need for thorough ex ploration of the ever growing mag nitude of the assets of life insur ance companies and the lack of proper and organized supervision of same by state agencies.” Celler said the investigation by his monopoly committee had shown little state supervision of the huge assets of the insurance companies, which are so powerful they are "practically laws unto themselves.” “The insurance companies,” Cel ler said, “construct housing ‘pro jects build commercial and indus trial structures and rent them for short or long periods they are in the banking business and make loans to all manner and kinds of business. There is neither floor nor ceiling to their financial activities, save that they may only invest in capital stock to a limited degree.” For March 29 Buchanan schedul ed Frank Pace, Sr., Director of the Budget, to discuss the framing and presentation of Administration pro grams to Congress and Lindsay Warren, Comptroller General and a former inember of Congress, to discuss improper expenditures by government agencies for lobbying. AFL PROTESTS SLAYING OF Asserting the insurance com panies now control assets of be tween $50 and $60 billion Celler said “we cannot leave such power tv chance.” PERUVIAN LABOR LEADER Washington (LPA)—The Amer ican Federation of Labor March 2!’ protested “this latest crime of the Ease i s t-military dictatorship of Peru,” in the murder of Luis Ne groiros, secretary of the Organiza tion of the Peruvian Confederation of Labor, on March 24 “at the hands of the secret police.” Negre iros was fatally shot as he walked with a group of other labor leaders to a meeting in Lima. The day be fore, it was said, the military tri bunal had freed the president of the Peruvian Federation of Labor, Arturo Sabroso Montoya, and other unionists jailed for 18 months in connection with the Callao revolt of October 1948. Demand the Union Label. W S'. w IS A ib Meany Given Lifetime Card Chicago.—AFL Secretary-Treasurer George Meany is presented with gold honorary membership card in Plumbers Local Union 130 at ceremony in connection with dinner of trade union division of the Chicago Israel Histadrut. L. to r. are President Reuben G. Soderstrom of Illinois State Federation of Labor Mr. Meany President Stephen M. Bailey of Local 130, Chicago Secretary-Treasurer Walter J. Plotke, Local 130 President William Dodd of Plumbers Local 2, New York City. Mr. Meany is a member of Local 2 and past presi dent of the New Yo-’ r,,”te Federation of I Labor Committee Is Asked To PfOb£ NAM Propaganda Washington (LPA)—The Housed------------- investigation, of lobbies got off to “canned” editorials, if they agreed a fiery start March 27 when Prof. Stephen Kemp Bailey proposed legislation to require members of Congress to disclose their outside incomes and also asked for an in vestigation of NAM propaganda. Bailey, a professor at Wesleyan University, Middletown, Conn., out-: lined for the committee briefly a book he has written about the lob bies for and against the full em ployment act in 1946. He noted that much of the lobbying was directed from withjn Congress but empha sized the outside lobby* was con ducted by the NAM, the U. S. Chamber of Commerce, the Com mittee for Constitutional Govern ment, and the American Farm Bur eau Federation. He said there was a close con nection between the “opinion lead ers” in big business and in big agriculture, citing the “canned editorials” sent out regularly by the NAM to 7500 rural w'eekly newspapers. Bailey testified to the number of identical editorials against the full employment bill in small town dail ies and weeklies, including the Zanesville, O., Times, Recorder the Cheyenne, Wyo., State Tribune the Clarksburg, W. Va., Exponent the Lima, O., News the Macon, Ga., Telegraph and the Cumber land, Md., Times. Because of the influence of such papers, Bailey said, their printing of “handouts from the national opinion machines of big business have considerable significance.” Rep. Clarence Brown (R, O.) criticized what he called an infer ence that the newspapers were con trolled or influenced by big busi ness. He asked what was wrong with the papers printing such with them. Bailey replied the public would have been interested to know the origin of the editorials, but it was not disclosed. Brown accused the witness of bias because he mentioned no papers that printed editorials fav oring the full employment bill. Bailey replied he had found no in stances of papers printing identical editorials favoring the bill. The witness said the NAM was not the only business organization which “maintains close liaison with agricultural opinion.” He said the money of the Pew family of Penn sylvania, prominent in Republican ■ircles, was behind the Farm Jour nal and Pathfinder Magazine, and Frank Gannett, sparkplug of the Committee for Constitutional Gov ernment, owned a string of rural papers and published the Ameri can Agriculturist. He urged the committee to “make a special study of the NAM as a possible holding company for a var iety of seemingly independent pres sure groups, and as a conditioner of rural opinions.” Bailey submitted to the commit tee the draft of legislation which would require all Congressmen and all policy-making officials of the| executive departments to publish annually the amounts and sources of their outside incomes, and busi-' ness and professional connections. Brown, who was distinctly hos-' tile to Bailey, tried to find out more about his background, appar-' ently suspecting he was some kind of radical. It turned out he had worked for a year for Gov. Thomas E. Dewey, of New York, and also i for the Hoover Commission. Demand the Union Label. mM ■this modernwater Get an electric water heater reid say goodbye to trips downstairs, to bother some waiting. Have all the hot water you want, day or night. .. with never a thing to turn on or off but the faucetl An electric water heater is all con venience, no headaches. Clean, safe, dependable as electric light. Installs almost anywhere, no flue or chimney connectic'.i'L Your dealer has a size and type just right for you. TAe OHIO POWERS No Thursday, 'April 6, 1950 Union Says DP’: Being Used As Strikebreakers Hudson, N. Y. (LPA) Forty* displaced .persons fere being used by K-B Products, Inc. here as strikebreakers, Jack Rubenstein, New York state director of the Textile Workers charged in a let ter to Ugo Carusi, chairman of th«» US Displaced Persons Commission March 30. Rubenstein said the DP’s took the jobs fearing they would be re turned to their homelands if they didn’t. “This is hardly the refuge they sought when'they came to our shores seeking sanctuary,” the union official declared. “This is hardly more than life would have been in the police states from which they escaped. If they are to be indoctrinated in the American way of life, then they must have protection from those who would exploit the fears they accumulated in the past two dark decades.” K-B Products, Inc., growers and processors of mushrooms, employs 250 in its main plant here and an other 150 who work in mushroom caves along the Hudson River. An accumulation of grievances led to a strike in the main plant Jan. 31 and a subsequent appeal to the Textile Workers, largest union in the area, for aid. The union won an NLRB election. Cave workers struck March 9, when one of them was fired fo| union activity, and the main plan" employes walked out a second time when the company discharged a worker who had been reinstated by the New York state mediation board. Shortly afterward, the union told Gov. Thomas E. Dewey that revolvers were being brandished at peaceful pickets and that deputy sheriffs were escorting strikebreak ers through the lines. STRIKING UAW LOCAL REJECTS PAY CUT PLAN Detroit (LPA)—A company pro posal to cut wages on piece work 25 to 52% and to step up produc tion among hourly rated employes was rejected flatly by the striking members of Federal-Mogul Local 202, UAW. 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