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Cold, rainy this afternoon, tonight; rain ending early tomorrow; clearing, warmer in afternoon, temperature rising to about 60. Temperatures today—High, 49, at 1 a.m.; low, 44, at 7:06 a.m.; 46 at 1 p.m. Yesterday— High, 62, at 12:20 a.m.; low, 47, at 10:04 p.m. Guide for Readers Page. Amusements_B-14 Churches -A-8-10 Comics.B-12-13 Editorials.A-6 Editorial Articles, A-7 Lost and Found _A-3 Page. Obituary .A-4 Radio .B-13 Real Estate_B-l-7 Society .. B-6 Sports_A-ll Where to Go_A-7 An Associated Press Newspaper 94th YEAR. No. 37,254. Phone NA. 5000. WASHINGTON, D. C., SATURDAY, MAY 4, 1946-TWENTY-SIX PAGES. ★★ City Home Delivery, Dally and Sunday 90e a Month. When 5 Sundays, $1.00 5 CENTS Reinforced Alcatraz Guards Set To Hurl New Assault on Rioters After Give Up or Die Ultimatum Prison Clerk Silent On Report That Mutiny Has Ended BULLETIN SAN FRANCISCO ^.—Ma rines who rushed to the aid of guards at Alcatraz Prison when rioting broke out there were being withdrawn from the island today. Maj. Albert Arsenault said Warden James A. Johnston told him they no longer were needed. There was some indication that the rioting convicts, under heavy fire for two days, might be dead or wounded. ly the Associated Press SAN FRANCISCO, May 4.—| Prison guards strengthened their battle line with reinforcements today and prepared to blast rebel convicts out of their cell block entrenchment at Alcatraz if they refuse a “surrender or die” ultimatum. The choice for the desperate crim inals was to face the blistering fire of assembled guns and grenades or to surrender and face charges of murdering two guards and wounding 14 others in the blazing mutiny, now in its third day. Marines, San Francisco police and guards from other prisons bolstered the officers of the island Federal prison as the besiegers tensely awaited the desperadoes’ decision. James V. Bennett, director of the Bureau of Prisons, flew to San Francisco from Washington last night to make a “complete investi gation” of the riot. The cell block of the three-story concrete structure atop the rocky island was quiet as the doomed men considered their choice. Saw Ladders at Windows. A reporter for the Oakland Tri bune said that while cruising around Alcatraz today he saw several guards put long ladders to the windows from which convicts had been shooting; that the guards peered in the win dows, and there was no shooting from inside. There had been no fire from the convicts since late yesterday. A clerk at the prison reported later by telephone, however, he could not confirm reports the riot had ended. He would say nothing more. The reporter said two ladders were set up to the windows of the cell block. Five men mounted the catwalk. A shot was fired, either into the cell window, or to attract attention. Then a guard mounted one ladder and looked inside. Another man in a gray uniform, such as convicts wear, climbed the other ladder and stood for some time peering inside the cell block, his head and shoulders above the window sill. Then both men descended and the five departed. The cornered criminals were re ported to have ammunition, but no hots were heard from the embattled ilockhouse since last night. Warden Wouldn't Deal. One of the convicts yesterday ■lephoned Warden J. A. Johnston o bargain for surrender. "We’ll make a deal when you throw out your guns and ammuni tion,’’ the 72 - year - old warden Miapped back. Silence followed. There was no certainty how many of the convicts remained alive. A marine officer estimated 24 were in volved, on the basis of wounded guards' reports. It was presumed that some were killed and wounded in the fierce battling with machine guns, rifles, pistols, hand grenades and tear gas that raged for hours, then slackened into last night’s calm. Guards Ordered Withdrawn. Not a sound could be heard from the portion of the prison which they had held for more than 36 hours. About 10:30 last night Warden Johnston ordered guards who had been attempting to creep within gun shot of the rebels to withdraw. “We’re leaving them alone to night, to talk it over,” a prison offi cial said. “We’ll go to work on them in the morning.” When the rioters seized the cell block, one of the two guards killed was brutally kicked and beaten. He died later of his injuries. Others were herded into a cell, where fren zied and cursing convicts pumped bullets into them. The guards held as hostages were rescued by a gallant group of prison officials, who braved a hail of gun fire to remove their comrades from the hands of the desperadoes. There was no Indication of con vict casualties, but they undoubt edly have been heavy. For more iSee ALCATRAZ, Page A-3.) 12 Under Arrest in Milan For Theft of Duce's Body By th« Associated Press MILAN, Italy, May 4.—Civil Police Chief Umberto Ferrante said today that 12 persons, including one sus pected of being the head of a clan destine Fascist movement, were un der arrest in connection with the theft of the body of Benito Mus solini. Ferrante said none of those ar rested had admitted taking part in the actual theft, but that some had confessed taking an active part in the organization “Partito Fascista Democratica." This organization asserted in a published letter that it had arranged the body snatching. Police operations in connection with the theft continued to center in Milan. Ferrante said the arrests were only the first “rings of a long chain.’’ He added he could not dis close additional details at this time without tipping off Fascists still at large. I Mild Sun Greets Fans Arriving For Running of Derby at 5:15 100,000 Will See Louisville Classic in Mud; Wee Admiral Still on DouUful List (Picture on Page A-ll.) By the Associated Press LOUISVILLE, Ky.. May 4 —Col. Matt Winn’s Derby-day luck—a tradition of the race track—held up through most of the morning today and a mild sun greeted the vanguard of a crowd of 100,000 expected to be on hand for the 72d running of the classic at 5:15 p.m. t In mid-morning, E. F. Unger of the Weather Bureau predicted in a special forecast that there would be some cloudiness but no rain at post time. The track at Churchill Downs was muddy, however, from rains earlier in the week, promising gooey underfoot for the 17 3-year-olds shooting at the big gnd of the $100, 000 pot. At 11 am. there had not been a single scratch from the field of 17 horses er tered through the secre tary’s off ce, although R. S. Mc Laughlin’s Wee Admiral remained on the somewhat doubtful list. Art Brent, veteran trainer of the Canadian campaigner—who likes a fast track far more than mud—said early today he would definitely start We Admiral if it cameup sloppy, but would not decide until noon or later today what to di if the footing was muddy or slow. A fast track horse finds it easier to step in the slop here, because of the unusual running surface. Any horse has until 45 minutes before post time to pull out of the race. ror nours during the morning the track workmen circled the strip and swept the standing pools of water off the running area and under the inside rail. Meanwhile, the thousands jam ming Louisville were taking their (See DERBY, Page A-2.J Arab Appeal to U. N. Through Moscow Is Reported Planned Palestine Groups Said to Be Preparing to Send Delegate to Russia By th« Associated Press LONDON, May 4.—An Arab League spokesman said today that Palestine reports indicated Arab groups planned to send a delegate to Moscow to ask the Soviet government to submit the Palestine problem to the United Nations. The spokesman, speaking to news men in Cairo, added that he under stood the Russians would be asked “to support the Arabs in Palestine” against the report of the British American Inquiry Committee, which recommended immediate authoriza tion for the immigration of 100,000 Jews. Tension mounted in the Holy Land amid reports that the heads of all the Arab states were discussing the report and that an extraordi nary meeting of the seven states in the league would be convened. Some Favor “Fight to Death.” Arab youths staged a riotous dem onstration against the report in Jerusalem yesterday, and a high Arab official asserted in Cairo that some Arab leaders favored a fight to the death “for their existence." The official. Abdel Rahman Az zam Pasha, secretary general of the Arab League, said some Arabs proposed that Palestine be convert ed into a battleground where Arabs from all over the Middle East would wage a fight for a showdown on the Jewish question. He said these leaders had urged the evacuation of women and chil dren from Palestine to neighboring states, as a prelude to the procla mation of war, but added: "This is a measure of despera tion, and we are no desperate or near desperation yet ’ Egypt Strike C nsidered. Yesterday's demo istrations in Jerusalem occurred during a one day strike called ty the Arabs in protest against the recommenda tions by the British-American In quiry Committee, The strike proceeded quietly at Haifa, Jaffa a'id Hebron. Two Jew ish buses we: e stoned at Ramleh, near the all-J iwish city of Tel Aviv. Tire Arabs also are considering the calling ol a general strike in Egypt to protest against the com missions recom nendations. May 10 has been mentic led as the date, but no decision ha^ been reached. Baghdad Area Are Closed For All British Troops BAGHDAD. May ' (Delayed) WPi. —The east bank of t.\e Tigris Hiver, including the main sections of Bagh dad, was declared out f bounds for all British troops today , s a precau tion against trouble with Arabs an gered by the Palestine report which recommended that 100,000 Jews oe permitted to enter Palestine. Some legislators demanded sever ance of relations with the United States and abrogation of all treaties with Britain. Gen. Nuri A1 Said, President of the Iraq Senate, addressing the Na tional Committee for the Defense of Palestine, urged the, ‘‘co-operation of all Arab countries,” and Senator Abdul Mahdi, Independence party leader, said “we must meet force in Palestine by force.” Jewish Agency Committee Hails Inquiry Report The Executive Committee of the Jewish Agency for Palestine has ex pressed "profounaest satisfaction” at the support accorded President Ta man’s proposal for the immediate admission of 100,000 Jews into Pal estine by the Anglo-American Com mittee of Inquiry. A letter made public by the White House yesterday put the committee on record. It said that “our organ ization here, on the continent and in Palestine is at your disposal in the execution of any part of the pro gram that may be assigned to us.” Among the signers was Eliahu Ep stein, Washington representative. I ' J 60,000 Chinese Reds Declared Routed in Battle Near Mukden Casualties of 5,000 to 7,000 Are Claimed for Nationalist Troops By the Associated Press Chinese Army headquarters in Mukden said today government forces have routed 60,000 Com munists troops in a two-day bat tle for Penhsihou, main Commu nist stronghold southeast of Mukden. It said national troops inflicted 5,000 to 7,000 casualties. Gen. Tu Li-ming, government commander at Mukden, said the battle began Wednesday and that occupation of Penhsihou was com pleted yesterday. He said the Na tional forces had thrust northward from Liaoyang. Meanwhile, Gen. Chou En-lai, No. 2 Chinese Communist, reported in Nanking that the Russians had withdrawn their diplomatic and railroad representatives from Man churia, recognizing the futility of attempting to operate the Chang chun railroad jointly with China; while the civil wrar was raging. Newsmen to Leave Changchun. A Communist spokesman at Amer ican Executive Headquarters in Peiping reported that five American news correspondents, including Tom Masterson of the Associated Press, were scheduled to be evacuated from Changchun tomorrow. The spokesman said Gen. Yeh Chien-yin, Communist commissioner, had been advised that the Chang chun airport could not be put into condition to land a rescue plane earlier. The correspondents have been held in protective custody since Communist captured Changchun April 16. Gen. Chou today held his first press conference in Nanking, where he will resume peace conferences with George C. Marshall, American envoy, and Generalissimo Chiang Kai-shek. He said the withdrawal of the Russian representatives from Manchuria "worsen relations” be tween the Soviets and Chinese. "Diplomatically, it is deplorable,” he said, although the Russians had promised to attempt to implement their treaty with China “at an other time.” ','In the matter of foreign rela tions,” Gen. Chou said, “we (Na tional China and the Communists) are not agreed that Manchuria (See MANCHUltlA, Page A-3.) Truck Hits Streetcar, Killing One, Hurting 55 By the Associated Press TORONTO, May 4.—One man was killed and at least 55 persons were injured last night when a runaway tractor-trailer collided with a crowded streetcar and swept the trolley with a searing blast of fire at a busy Toronto intersection. Police said the huge tractor trailer’s brakes failed to hold and it careened down Bathurst street with the driver and his helper shouting warnings to persons on the streets before it rammed the street car. The truck’s gasoline tank ex ploded and a sheet of flame scorched the 100-odd passengers inside. For ty-two persons were hospitalized. Senate Meeting Today to Speed Loan Action Two Republicans Act To Curb Debate on Credit for Britain By th« Associated Press Putting on pressure to speed a showdown on the British loan, the administration today sum-' foioned the Senate for an unusual Saturday session, with a formal move promised to curtail further debate. The move to cut further talk after three weeks of it originated not with the administration but with two Re publican Senators, Ball of Minne sota and Smith of New Jersey, both outspoken advocates of the long term $3,750,000,000 credit arrange ment with Great Britain. Within an hour yesterday after noon, they accumulated 22 signa tures to their petition for “cloture,” a seldom-invoked Senate rule for limiting debate to one hour per member. Only 16 signatures are necessary to force a vote on the pe tition. They planned to file it today and bring it to a vote Tuesday. It requires two-thirds majority to prevail. Roll Calls Consume Time. Senator Ball and Smith started circulating their petition after two roll calls to establish a quorum had consumed nearly an hour of the Senate’s time. Senator Ball told reporters the quorum calls smacked of “filibuster tactics" and he thought the Senate ought to start voting after three weeks general debate. Majority Leader Barkley said the same thing—with even more vehe mence—on the Senate floor. Senator Barkley told the Senate1 he would “resist with all the power and influence I possess any at tempt to lay the loan legislation aside for any other measure. And that went, he added, even for legis lation to extend the draft law, which will expire a week from next Wed nesday unless Congress acts. He also demanded the session to day, although the Senators on Sat urdays usually take time out from committee and floor work to at tend to their mail and other office duties. When Senator McFarland, Democrat, of Arizona, protested against meeting today because many members were away from the Capi- 1 tal. Senator Barkley told him: “I’m not going to postpone a vote because a few Senators have gone out of town, no matter whether they are for or against the bill. If they are not here, it is their respon sibility.” Hill Seeks Vote Tuesday. The majority leader declared the British loan is “the key to the in ternational relations of the United States." Senator Hill, Democrat, of Ala bama, the majority whip, told re porters after the session that he be lieves the Senate will agree to start voting on proposed amendments to the measure Tuesday without the necessity of invoking cloture. “I have seen these things work out that way before,” he said. "The Senate can act with a great deal of speed when it wants to. I think the amendments will go pretty fast when we get the voting." Conference to Seek Housing Compromise By th« Associated Press House and Senate conferees rolled up their sleeves today for a fresh try at breaking the deadlock between the two chambers on the administra tion’s long-delayed emergency hous ing bill. The controversy centered on the administration’s proposal to use $600,000,000 in subsidies for encour agement of larger production of scorce building materials. Such subsidies—described by Presi dent Truman as the “very heart” of the legislation—were rejected by the House weeks ago on a vote of almost 2 to 1. Later, however, the Senate sided with the President and put the $600,000,000 back into the bill. With Wilson W. Wyatt, housing expediter, estimating that each day's delay is costing 3,000 new houses for veterans, administration leaders called House and Senate conferees to an unusual Saturday meeting in hopes of making some headway toward a compromise. The House and Senate are in ac cord on several major provisions of the housing bill, including continua tion of the Government's priorities and allocation authority in channel ing scare building materials; prefer ence for veterans in the purchase or rental of new dwellings, and a $1, 000,000,000 increase in Government authority to insure mortgages on new homes. U. S. Clerk in Moscow Accused Of Acts Against Soviet Actress By xn« Associated rress MOSCOW, May 4.—Waldo Ruess of Hollywood, Calif., United States Embassy clerk, received a summons today to appear Wednesday in the Moscow city prosecutor’s office to answer charges of committing “in solent acts’’ against an actress from one of Moscow’s state theaters. ttuess, jo, ana unmamea, wnose home is on North Ardmore ave nue, Hollywood, Calif., refused to comment. He has been a member of the administrative stafl of the Embassy for two years and had been expecting to leave soon for home. He was not arrested or asked to post any bail. The Moscow newspaper Trud, in one of the few instances in which it has published police court news, printed an account under the head line: “Hooligan acts of an American citizen.’* ! i “Riding in an automobile with a Soviet citizen, an actress in one of the Moscow state theaters,” the Labor newspaper said, “a member of the American Embassy in Mos cow, Waldo Ruess, permitted him self a number of insolent hooligan acts towards her. “Ruess’ hooligan acts were stopped only after interference by a policeman, who hastened to the citizen’s cries for help. “In accordance with Soviet laws, Ruess will be brought up for crimi nal proceedings ” Foreign diplomats, commenting on legal aspects of the case, said mem bers of embassy staffs in other countries customarily enjoyed diplo matic immunity, but that the So viets apparently had not extended this immunity to clerks and others who are not on the official diplo matic list. k WHAT CAN l DO FOR YOU GENTLEMEN? PwT THOUGHT YOU ' ( MIGHT LIKE To GET j i OUR ADVICE ON J\ l RUNNING A JAIL |i'il irnmiiniiumuunil ■ MASONS Defense Chief Details Plan for Air Reserve Of 170,000 Men Stratemeyer's Program Provides for Guard Of 84 Squadrons Detailed plans for an air na tional guard of 84 squadrons and an air reserve of 50.000 officers and 120,000 enlisted men to augment the Regular Army Air Force in event of an emergency were announced today by Lt. Gen. George E. Stratemeyer. commander of the Air Defense Command. The over-all program, subject to approval of the War Department and Congress, was described by Gen. Stratemeyer to adjutants general of all the States at a meeting of the National Guard Association at the Statler Hotel. The plan calls for 27 Air National Guard groups and 34 Air Reserve groups to be integ rated into an air defense system with headquarters at Mitchel Field. The Air National Guard, operat ing from 79 bases with at least one in each of the 48 States and the District, would consist of 3.000 pilots. 3,800 nonrated officers and 40,000 enlisted men. 2,664 Aircraft Provided For. Each of 72 fighter squadrons and 12 light bomber squadrons, Gen Stratemeyer said, will include utility flights of four tow targets, two trainers, two liaison and one trans port aircraft. Under the plan the squadrons would use 2,664 aircraft of late de sign. including 1,000 North American P-51 Mustangs. 800 Republic P-47 Thunderbolts. 196 Douglass A-26 Invaders, 96 Douglass C-47 Skytrains and various tow target and liaison planes. Pay for participation in drills, summer camps, schools and ma neuvers would be similar to the schedule of former National Guard units. Sites of airports, enlistment procedures and schedules for train ing programs, Gen. Stratemeyer said, will be announced after final decisions are made. A training program for the Air Reserves, it was said, eventually will employ 130 bases in all parts of the country to establish and maintain efficiency in all categories of AAF reserve personnel. These bases will have one or more organized combat units made up entirely of Air Re serve personnel. Permanent or interim AAF ground toee au, page a-3.) Demobilization Handicaps! Bases, Eisenhower Says By the Associated Press MANILA, May 4.—The speed of demobilization has seriously handi capped the maintenance of vital American military bases in the Pacific, Gen. Eisenhower said today. He arrived by plane from the Marianas. “There are millions of dollars worth of equipment to be taken care of, and no one to take care of it,” he said at a press conference. “At Honolulu, for instance, the entire 7th Air Force is down to a strength of only 404 men. The same general conditions apply elsewhere in the Pacific.” Asked about general plans for dis tribution of American peacetime forces in the Pacific, the Chief of Staff said he could not say how many divisions would be required as a minimum force “but I will say that history proves that we can never afford to weaken ourselves.” Late Bulletins Pay Bill Again Held Up Conferees on the Federal pay bill today failed to reach agreement on the final ver sion of the legislation and scheduled another meeting at 2:30 p.m. Tuesday. ('Earlier Story on Page A-3.) Buying Change Asked The State Department an nounced today it had asked 15 nations to disband their purchasing missions in this country and get back to nor mal peacetime trading prac tices as soon as possible. I Fall From Auto Fatal to Boy, 5, Hailing Passerby James Raymond Lawrence, 5, of 1314 I street N.W., died in Casualty; Hospital shortly before noon today' from injuries received when he fell out of his parents’ moving auto mobile in Laurel, Md„ as the family left Washington for a vacation. Casualty Hospital attaches said the accident occurred at 9:15 a.m. when tne Lawrence automobile hailed a Navy truck ar- James opened the car door. The boy was given emergency treatment by a private physician in Laurel, " re porters were told, and then was rushed to Casualty Hospital. Death resulted from internal injuries, hos pital officials said. Arnold Lines Resume Bus Service Tonight, But New Threat Rises Firm Says Fares Must Go Up if Operations Are to Continue BULLETIN The 250 union employes of the Arnold-operated bus lines voted approval today of strike settlement terms reached by conciliators last night. Meet ing at the Ballston Firehouse, the workers agreed to start putting buses back in service. The first scheduled run will start at 11:55 o’clock tonight. As the Arnold-operated bus lines prepared to resume service at 1 a.m. tomorrow for more than 50,000 commuters in nearby Virginia, company officials as serted today that unless their petition for higher fares is granted by the Interstate Com merce Commission they event ually may have to discontinue bus service between that area and the District. The company’s position was made known shortly after union spokes men agreed last night to end the 8-day-old strike and return to work tomorrow. The company spokesman said the firm had lost money on its opera tions during the last three months at a rate of $10,000 a month. He added the company estimated that wage increases to its drivers would increase the monthly loss to $17,500 unless the ICC grants its petition for fare increases. It was learned that the company's petition requests what amounts m a 2'2-cent increase over the present 10-cent fare. If the company's peti tion were granted, commuters could buy tokens at the rate of two for 9** rente Company officials denied reports that the firm is using its “huge profits” to purchase business prop erty in Palls Church. They as serted that any purchases that have been made by Leon Arnold, princi pal stockholder of the company, were made from his own private funds. Meanwhile, the bus drivers pre pared to go back to work tomorrow morning as both sides agreed to (See BUS, Page A^3.) Gas Wage Talks Open After Union Members Vote Against Strike Decision Ends Threat To Cut Off Supply of 260,000 Consumers •BULLETIN All threat of a strike of Washington Gas Light Co. workers ended today when union and company repre sentatives agreed to place the company-union wage contro versy before a five-man arbi tration board. Two of the board members will be named by the union, two by the com pany and the fifth by the Sec retary of Labor. It was also learned that President Tru man and Secretary of Labor Schwellenbach have been keeping in touch with the situation. With the threat of a gas strike removed at least temporarily by the union’s vote to submit to Federal arbitration, officials of the Washington Gas Light Co. and union representatives met today to discuss means of set tling their wages and hours dis pute which had threatened to cut off the supply for 260.000 consumers in the Washington area. Union members chose to arbitrate early today after voting on the question: “Strike or arbitrate.” Results of the balloting were not disclosed, but it was evident those favoring a walkout failed to muster the two-third majority necessary to call a strike. Participating were most of the approximately 1.100 members of the International Chemical Workers’ Union. Local 63, and the Office Em ployes International Union. Local 2. both AFL unions. Ballots were cast throughout the day at different localities, the final tabulations being made at 1024 New Jersey avenue N.W. at 2:30 a.m. Union Head Hails Decision. If the vote had called for a strike, a walkout was scheduled for 12:01 a.m. Monday by the chemical work ers. with the office employes slated to follow their lead in a "sympathy” move. John F. Kenny, president of the chemical workers' local, who an nounced the decision, hailed the re sult as a “wise move” on the part of the union. He said he now hoped for a decision from a Federal abri tration board “within 10 days." Announcement that there would be no strike followed tumultuous balloting sessions. Before each one. AFL and international and local union representatives urged the workers to accept arbitration as “the most satisfactory means" of settling their differences with the gas com pany. 24-Cent Raise Asked. Princip>al bone of contention in the dispute is the union's demand for a 24-cent-an-hour wage in crease. which the company has countered with an offer of 16 4 cents, contending this amounts ac tually to IS1* cents because of a 2 cent raise granted last fall. The union also is asking time-and-a half overtime pay for Saturday work and double time pay for Sunday. Searchers Find Two Lost Boys After All-Night Hunt in Rain Clyde A. “Tony” Lafoon, jr., 2, and his 4-year-old companion, Wal ter Jones, 4, were found in an open field today only 200 yards from Livingston road S.E., by a searching party of Bolling Field soldiers, 19 hours after the two boys disappeared from their homes in the 4300 block of Halley terrace S.E. Cold and wet, and suffering only from exposure, the lost children were located by Sergt. Ernest Mackie, Pfc. Robert Marlel and T/Sergt. J. T. Kelso in an area already combed thoroughly by scores of searchers last night and early today. it had been feared the two chil dren had fallen into rain-swollen Oxon Run after they wandered away from their homes yesterday at 4:30 p.m. Police details, volunteer sol diers from Bolling Field, 30 sailors from the Naval Air Station at Ana costia, neighbors and the frantic parents of the two children had covered the area thoroughly before the two were located. They were rushed to Casualty Hospital for examination and treat ment for exposure brought on by the night police believed they spent in the cold, wet woods behind their homes. Neither was able to give « lucid account of what befell them after they were last seen playing with their tricycles at First and Elmira streets S.E. Tony is the son of Clyde A. Lafoon, a barber. Walter is the only child of Howard Jones, colored janitor, who lives across the street from the Lafoons. Earlier, Mr. Jones told reporters the only tfrace of the boys was their tricycles, which were found at the (See BOYS, Page A-2.) New U. S. Move In Coal Strike Due Next Week Dimout Here Today; Lights on Streets Won't Be Curtailed BULLETIN At the request of the Office of Defense Transportation, the Railway Express Agency today ordered an embargo on all express shipments, effec tive May 10, except for those classes of merchandise exempt under the railway freight em bargo announced two days ago. Top officials indicated today the Government would take new steps to end the 34-day-old coal strike by the middle of next week as dwindling fuel supplies forced a wartime dimout on Washington and similarly in convenienced a wide area of the Nation. In Richmond, the State Corpor ation Commission called representa tives of 27 power companies doing business in Virginia to a meeting at 2 p.m. Monday to consider ration ing of electricity The commission acted after con ferring for several hours with rep resentatives of the Virginia Electric & Power Co. during w’hich the com pany president. Jack G. Holtzclaw, laid before the commission “the whole story” of the company’s pow'er resources for the next few weeks. Proposal Believed Prepared. There was little indication of the nature of the new’ action being planned by the Government, al though it appeared that a proposal for settlement of the strike w’as be ing prepared. John L. Lewis' chief demand for a union health and wel fare fund was a touchy subject to deal with and there was a possi bility that arbitration might be sug gested for that issue. Although Mr. Lewis and the soft coal operators were to meet under Labor Department supervision today and perhaps tomorrow, little hope was held out for major developments over the week end. More Drastic Cuts Planned. The District Commissioners or dered the dimout. effective today, after a conference between Assistant Engineer Commissioner Joseph D. Arthur, jr„ and officials of the Po tomac Electric Power Co. A sched ule of progressively more drastic cuts was approved in event the strike continues although only a preliminary dimout was ordered im mediately. The Public Utilities Commission issued a brief directive to the power , company today to comply with the dimout order. It authorized Pepco to cut off the supply of electricity to any con sumers found violating the curtail ment rules. At the same time District officials announced abandonment of earlier plans to curtail street lighting. After a conference between Dis trict and Pepco electrical engineers j it was decided that the elimination of the commercial sign and window j lights would so darken the streets as to require the street lighting for ] public safety. Street lighting, it was said, constitutes a very small part of the power load and now will be curtailed only as a last resort. In other fuel-famine develop ments, J. A. Krug, solid fuels ad ministrator. declared that the relief and rehabilitation program for Europe is on the verge of collapse because of the shortage of coal for transportation. He said there is.a grave possibility that great quantities of food “will not reach starving people in the liberated nations in time to avert an 1 international catastrophe.” In Chicago, where industry and business were under a four-hour-a day ration of electricity, things were dull and dark, although more orderly than immediately after emergency measures took effect. After two days of widespread confusion, emergency curbs were tightened and compliance with the dimout moved swiftly. Steel Production Sags. In the industry hardest hit so far by the coal strike, steel production sagged for the sixth consecutive week and stood at 67.7 per cent of capacity. The shutdown of the Na tion's steel plants were gathering momentum, however. The Office of Defense Transpor tation has ordered coal-burning railroads to reduce passenger service 25 per cent May 10 and to deepen the cut to 50 per cent May 15. Virtually all freight shipments ex cept fuel and food were embargoed, effective May 10. In Pennsylvania, Gov. Edward Martin moved to get enough coal mined to meet vital public utility j needs. He named three of his cabi | net members to confer in Pitts flSee COAL. Page A-3.) White Quits Treasury For Monetary Fund Post i The White House today announced the resignation of Assistant Secre | tary of the Treasury Harry D. White, who is becoming United States ex ecutive director of the International Monetary Fund set up under the ! Bretton Woods agreement. The resignation was effective May j 1. The fund operations start Mon day. i Mr. White has been with the Treasury Department for 12 years and in accepting his resignation, the I President told him that “I am con fident that in your new position you I will add distinction into your al : ready distinguished career with the ; Treasury.” 1 In his letter of resignation, Mr. White expressed the conviction that the fund ‘‘has a real opportunity to help the world achieve monetary stability and sustained prosperity."