Evening star. [volume], July 10, 1946, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

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94th YEAR. No. 37,321. Phone NA. 5000. WASHINGTON, D. C., WEDNESDAY, JULY 10, 1946-FORTY PAGES. 5 CENTS
Benjamin Fields
Ready to Testify,
He Wires Mead
Batavia Was Overpaid
Millions for Contracts,
Royal I Testifies
By Carter Brooke Jones
Benjamin F. Fields, missing
witness in the Senate war profits
investigation, who has been1
sought widely to explain charges
of attemDted bribery and alleged
efforts to impede the inquiry,
reported to the Senate War In
vestigating Committee from Los
Angeles today that he w’as
hurrying back to Washington
and would be ready to testify
when called.
Mr. Fields, named by Senator
Mitchell. Democrat, of Washington,
as the man who offered to contribute
$5,000 to his campaign fund while
suggesting that Senator Mitchell try
to get the committee to stop •'per
secuting” one of the Garsson
companies, declared the Senator
had made “numerous unfound and
untruthful” statements about him.
The committee, meanwhile, learned
from Undersecretary of War Ken
neth C. Royall that the War De
partment had asked the Justice De
partment to investigate an over- j
payment of $1,000,000 in was con-!
tracts to Batavia Metal Products!
Inc., one of the largest of the
Garsson munitions combine under j
scrutiny.
Erie Probe Suggested.
It had been brought out before
that the Federal Bureau of Inves-;
tigation had been called into the'
case. Mr. Royall disclosed that hej
had asked Attorney General Clark;
on May 31 to find out whether;
there was fraud in the overpayment j
and also suggested that the affairs'!
of the affiliated Erie Basin Metal
Products. Inc., be investigated.
When the inspector-general of the
Army reported an overpayment to!
Batavia of $1,000,000, Mr. Royall
said, "he concluded that the De-j
partment of Justice should investi-;
gate it.”
The Garsson interests since has
offered to settle for something over
$950,000, but did not want to pay
cash, asking permission to make
adjustment on an installment basis,
Mr. Royall told the committee. This
offer has not been accepted.
There was doubt, he said, whether
either company was in financial
condition at present to permit the
Government to recover.
Freezing Order Modified.
Discussing the War Department;
order of about nine months ago
freezing Erie funds to protect Gov- j
ernment claims, Mr. Royall pointed
out that the order was modified,;
but that the War Department still j
required more than enough money [
to be frozen to satisfy all claims.
Mr. Royal said the modification
order followed a visit which Secre- j
tary of War Patterson made to the
office of Representative May, where
two officers of the Garsson corpora
tions protested against the freez
ing.
Mr. Patterson told the committee j
of the visit yesterday, but denied j
that anything was done as a result'
of it except what was considered;
fair to all concerned. He said all j
he told the company officers, whose
names he could not remember, was!
to get in touch with War Depart-j
ment officers in the renegotiation!
branch.
At the outset of this morning's1
session, Chairman Mead read into!
the record telegrams from Dr. Henry
M. Garsson, head of the Illinois
munitions corporations under com
mittee scrutiny, and from two offi
cers in the companies, Allen B.'
Gellman and Joseph T. Weiss, re-'
pudiating the charge of anti-sem
itism made by others in their behalf,
declaring it was without basis and
had not been authorized by them, j
. Issue Raised by May.
Chairman May of the House Mili
tary Affairs Committee had said in
his speech in the House Monday
that the Chicago ordnance district
had objected to doing business with
Dr. Garsson because he was a
Jew, and the issue was brought
further into the proceedings in tes
timony yesterday by Henry Pavnter,
( See WAR ]PROFITS, Page A-2.)
Late News
Bulletins
Steers Reach $23, New Top
CHICAGO —A load of
prime Iowa fed steers estab
lished a new top at Chicago’s
cattle market today at $23.
This figure outdistanced the
27-year high of $21 which fol
lowed the World War and was
not topped until last w-eek
with $22.50. The $22.50 top
held almost daily since it was
set last Tuesday and was yes
terday’s peak price.
Russia Invokes Sixth Veto
NEW YORK (JP). — Soviet
Russia invoked the veto today
for the sixth time in Security
Council history in an effort to
block a move for Canada to
participate in Council discus
„ sions on atomic energy. (Ear
lier story on Page A-7.)j
Another Overseas Star
Available Today
The latest Overseas Edition
of The Star is available to
day at both The Star office
and the street floor service
desk in Lansburgh’s Depart
ment Store.
Copies are free, with en
velopes for mailing, but the
edition is strictly limited.
Please do not waste a single
copy. i
4 J
Sidney Hillman, Founder of PAC,
Dies at Home on Long Island
Was Storm Center
In 1944 National
Election Campaign
4
By the Associated Press
POINT LOOKOUT, N. Y., July i
10.—Sidney Hillman, 59, one-*
time immigrant boy and gar-1
ment cutter who became one of I
the most controversial political i
figures of his time, died today.
It was Mr. Hillman, national
chairman of the CIO Political Ac- ]
tion Committee, who became a:
political storm center in the 1944
presidential campaign when the!
Republican charge of "clear every-*
thing with Sidney” swept the
country.
Republicans charged—and Demo
| crats and Mr. Hillman denied—that
* the late President Roosevelt, passing
I through Chicago during the 1944
Democratic National Convention,
j told Robert Hannegan, Democratic
national chairman, to "clear every—
i thing with Sidney" regarding con—
I vention strategy and choices.
Mr. Hillmans death came of a
heart condition at 8:40 a.m. in a
bedroom of his six-room summer
bungalow on the south shore of
Long Island near Long Beach.
The labor leader was found un
conscious in bed by his wife, Bessie.
Dr. John Cahill, a neighbor had
police rush an oxygen tent to the
bedside but Mr. Hillman failed to
rally and died shortly afterward.
The small, frail Mr. Hillman came
here with his family June 1. They!
had made their summer home at
this Long Island resort for the last
14 years.
Three weeks ago he suffered an*
attack of coronary thrombosis and
since then had been resting and
trying to regain his strength.
Dr. Mack Lipkin. the family physi
SIDNEY HILLMAN.
clan, arrived shortly after Mr. Hill
man's death. The doctor said he had
been treating Mr. Hillman for a
heart condition for some time.
Family at Bedside.
At the bedside when he died were
his wife, the former Miss Bessie
Abramowitz, whom he married in
1916; a daughter. Mrs. Selma Ler
ner; his son-in-law, Irving Lerner,
and granddaughter, Dorothy Lerner.
Although Mr. Hillman was presi
dent of the large and wealthy Amal
gamated Clothing Workers of
America, he was best known in
labor circles for his direction of
the PAC.
His death left no immediate heir
apparent to the chairmanship. A
successor likely will be chosen at
a meeting of the PAC's Executive
i See HILLMAN. Page A-12.)
Lustig Given 4 Years
And$115,CJFinein
Tax Evasion Case
Nephew Draws Three
Years and Accountant
Two; Planned
iy the Associated
NEW YORK, July 10.—Henry
Lustig, president of the Long
champs restaurant chain, today
was sentenced to a four-year
prison term on his conviction on
charges of evading payment of
$2,872,766 in Federal income
taxes.
Judge Harold Kennedy also fined
Lustig $115,000.
E. Allen Lustig, nephew of the
restaurant,eur, drew a three-year
prison term and Joseph Sobel, chief
accountant for the chain, was sen
tenced to two years’ imprisonment
for their part in the conspiracy.
Defendants Will Appeal.
Lloyd Paul Stryker, chief defense
counsel, gave notice of appeal and
tlte defendants remained free tinder;
$5,000 bail.
A jury of six men and six women !
deliberated less than four hours I
June 19 in returning a guilty verdict;
on all 23 counts of the indictment.
The maximum penalty possible was
112 years in prison and $230,000 in
fines, but the jury recommended
clemency.
The Government had recom
mended a five-year prison sentence
and the $230,000 fine for the elder
Lustig.
The Government, during the trial
which lasted more than a month,
accused the Longchamps officials
of falsifying the firm's books by
exaggerating purchase figures and
understating receipts.
The elder Lustig personally pock
eted thousands of dollars in tips
left by Longchamps patrons and
withdrew more than $1,000,000 in
large denomination bills from the
Longchamps account, according to
Government testimony.
Defense Pleaded No Liability.
The defense contended through
out, the trial that the Lustigs were
not liable to criminal prosecution
because they voluntarily disclosed
| the tax delinquencies and paid the
Government $1,800,000.
Internal Revenue agents testified,
however, that investigation of the
Longchamps case already had begurf
when the Lustigs offered to settle
their tax arrears.
Boris Kostelanetz, special assis
tant attorney general who prose
cuted the case, said the Govern
ment estimates that the defendants
still owe upward of $5,000,000 In
taxes and $3,000,000 in penalties.
Judge Kennedy, at the time of
sentencing, said he had been assured
I by counsel “that these taxes will be
'paid.”
The Government was understood
to be planning civil court action,
j however, to recover the tax arrears
land penalties.
25 Homeward-Bound
Servicemen Die as
B-17 Hits Mountain
Fortress Bringing Men
From Newfoundland
Crashes in Massachusetts
• y the Associated °r«s*
HOLYOKE, Mass, July 10—
Twenty-five Army, -Navy and
Coast Guard men—the entire
crew and passenger list of a con
verted Flying Fortress carrying
the homeward-bound service
men from Gander, Newfound
land—were killed last night
when the plane crashed against
1.200-foot Mount Tom.
Salvage crews, summoned to the
scene of New England's worst air
disaster, labored today on the mist
shrouded hill that rises above the
Connecticut Valley not far from
Westover Field in nearby Chicopee,
where the plane was to have landed
at 8:27 o'clock last night.
The broken bodies^of the occu
pants. whose names were withheld
pending notification of next of kin.
were scattered among the plane's
wreckage along a 400-foot swath
shorn by the crashing B-17 through
dense woods 200 feet from the hill
top.
Twenty Bodies Rescued.
Army rescue forces who struggled
up a steep, cobblestoned road, re
ported that by daybreak they had
recovered about 20 bodies and had
taken them to Holyoke funeral
homes.
Five bodies were believed still in
the smoking, charred wreckage that
was spread in small pieces over the
quarter-mile-square area.
During the morning, many hours
after the crash, the woods still were
smoking and occasional bursts of
flame kept Army guards busy with
portable extinguishers. Molten en
gine nacelles and mangled parts of
the fusilage still gave off an in
tense heat.
Army officers speculated that the
pilot, possibly unfamiliar with the
terrain, did not observe the moun
tain until it was too late.
Typical GI mementos of a happy
homecoming that became a grim
tragedy dotted the charred ground.
There were personal snapshots,
obviously of parents, wives and
sweethearts. A gold wrist watch
that somewhow withstood the shat
tering crash glittered among the
ashes, its hands stopped at 10:20.
the approximate time of the crash.
Music Records Among Wreckage.
Music records of the V-disc type
distributed to armed service cen
ters, were strewn among the wreck
age. Charred and torif parachutes,
unopened, lay in piles.
There also were Navy pea jackets,
burned shoes, wallets, blankets and
several letters.
Army officials said the letters were
destined for the United States from
the overseas servicemen.
_ Westover Airfield officials said
i See BOMBER, ^age A-6.)
War Crimes Tribunal in Tokyo
Won't Bow to Nuernberg Rules
By the Associated Press
TOKYO, July 10.—The Interna
tional War Crimes Tribunal has the
greatest respect” for decisions
handed down in the trial of Nazi
war criminals at Nuernberg, but it
will not be bound by those decisions.
Chief Justice Sir William Webb de
clared today.
Addressing his remarks to an
! American defense attorney, Sir Wil
iliam said:
“You are wrong if you think we
| are slavishly goiing to follow" pre
cedents set at Nuernberg. There
were four nations prosecuting at
Nuernberg, he added, while “those
Tour and seven others are here.”
The defense attorney, William Lo
gan of New York, had requested
that when the prosecution reads
excerpts from a defendant's confes
sion, the defense be allowed at that
time to read any part that explains
further the excerpts. Mr. Logan
cited a Nuernberg precedent.
While he reacted sharply to the
t *
reference to the Nuernberg prece
dent, Sir William said it was the
duty of the prosecution “to read
the whole of an answer or it may
otherwise mislead the court.”
The Chief Justice announced that
the court would adjourn at noon un
til Monday morning to permit com
pletion of an air-conditioning sys
tem in the sweltering courtroom.
“The heat is interfering with the
proper discharge of our duties,” Sir
William said, after another tiff with
defense counsel.
Evidence was presented today that
fully two years before Japan created
the 1937 China incident the Kwan
tung Army prepared a plan of
propaganda “to convince the whole
world of our lawfulness.”
A secret army document intro
duced by the prosecution sought to
show that some of the 27 alleged
war plotters now on trial were deep
ly involved in plans for Japanese
expansion of the Asiatic mainland.
{
Austria Assured
We Won't Agree
To Red Seizures
U.S. to Renounce Share
Of German Assets
In American Zone
By the Anociaied Pr#n
VIENNA. July 10.—The United
States Government announced
today it would not recognize the
Russian confiscation of German
properties in the Soviet zone of
Austria which Jell into the cate
gory of forced transfers as de
fined at the London Conference
of January, 1943.
At that conference, the Allies
agreed that they would not recog
nize the transfer of properties to
German ownership in German-oc
cupied areas if such transfers were
made forcibly, even if there was ap
parent willingness on the part of
former owners.
Gen. Mark W Clark. American
commander in Austria, announced
at the same time that the United
States was prepared to turn over to
Austrian trusteeships all German
assets in the American zone pending
negotiations of the Allied powers on
the United States proposal to re
nounce the American share in Ger
man assets in Austria.
Pronouncement by Truman.
Gen. Clark presented the Austrian
government a communication from
President Truman only three hours
after Chancellor Leopold Figl had
appeared before an extraordinary
session of the Austrian Parliament
to announce his government was
not prepared to accept the Russian
interpretation pf German assets in
the Russian zone.
The United States pronouncement
was certain to have the heaviest
reverberations in Austria where the
Red Army's sudden order trans
ferring a large share of Austria s
industrial potential to the Soviet
Union had reused consternation.
The pronouncement concluded with
these words:
"The United States Government
also wishes to make clear that it will
recognize no physical transfer of
property as conforming to ihe terms
of the Potsdam agreement which
does not also conform to the terms
of the United Nations declaration
on forced transfer of January, 1943,
and which does not leave to Austria
the sovereign control of an inde
pendent country over the resources
within its borders, w'hich was en
visioned in the Moscow declaraton
of 1943.'
No Immediate Soviet Reaction.
There was no immediate reaction
to the United States note from the
Russians, but Austrian government
sources expressed great satisfaction
Properties claimed by the Russians
represent a large proportion of
Austrian industrial capacity and
their loss at this time would be
a severe blow to the Austrian econ
omy.
Gen. Clark's action followed
closely the abrupt order of Col. Gen.
L. V. Kurrasov. Soviet commander,
announcing the transfer of a 11
German assets in the Russian zone
to Soviet ownership.
The announcement was certain to
have a deep political effect in
Austria.
"I take pleasure in informing
you." said Gen. Clark's letter to
Chancellor Figl. “that the President
of the United States, as one of the
signers of the Potsdam agreement.
(See AUSTRIA, Page A-6.)
Niagara Falls City Workers
Walk Out in Pay Demand
By th« Associated Press
NIAGARA FALLS, N. Y„ July 10.
—Approximately 600 city employes
took what a union official called a
•vacation" from their jobs today in
support of demands for wage in
creases and the City Council was
■summoned to emergency session to
consider the controversy.
Edward F. Wood, president of local
138, American Federation of State,
! County and Municipal Employes
i AFL, said "there is no picketing, no
demonstration. We’re just simply
taking a little vacation." He added
.that certain essential services would
be continued.
Mayor Stephen A. Lamb and City
Manager Orville C. Butler informed
Mr. Wood that the City Council
would meet with union officials be
fore noon in an effort to reach a
settlement.
Meanwhile, the union agreed to
continue the service at water de
partment stations, the sewage dis
posal plant and the Incinerator and
pick up garbage at hospitals, con
valescent homes, hotels and restau
rants.
Mr. Wood said the workers voted
last night to take the action after
refusal of the City Council to act
on requests for wage increases of 5
to 25 cents an hour and a revision
of the pay scale of employes in cer
tain work grades.
Man Killed, 4 Wounded
In New York Holdup
By the Associated Press
j NEW YORK, July 10.—One man
was shot to death and four others,
including a patrolman and a former
Army sergeant, were wounded early
today in gunfire which followed an
attempted holdup at a West Forty
seventh street cafe.
Police identified the dead man as
; Solly Moss of the Bronx, business
agent for Local 10 of the Interna
tional Ladies Garment Workers
Union, AFT. Officers said he was
shot when he inadvertently brushed
one of the men as they advanced
toward the bar.
The patrolman, Arthur Green, and
the former Army sergeant, John
Healey, 30, New York, were shot
during a pursuit of the robbers, who
fled after shooting Mr. Moss. Two
of the three were wounded and cap
tured, the third escaped.
Later police said they were con
sidering a possibility that Mr. Moss
may have been the victim of a pre
meditated murder by thugs hired to
kill him.
4
prices
( I SURE ^
WOULD HAVE
A ROUNDUP IF
I COULD 6ET
\ UP THERE !j
Cowboy's Lament
U. S. Willing to Extend Treaty
On Disarming Reich to 40 Years
Byrnes Makes Proposal After Molotov
Complains Plan Is Inadequate
By th« Askocioted Pr»»»
PARIS. July 10.—The United
States is. willing to extend its
proposed disarmament treaty for
Germany from 25 to 40 years in
meeting Russian assertions that
the original plan is inadequate,
it was officially disclosed tod.iy.
The disclosure came as United
States Secretary of State Byrnes
and Soviet Foreign Minister Molo
tov aired their dispute over the
American proposal by publishing the
texts of their statements to the
four-power Foreign Minister's Coun
cil yesterday.
The Russian delegation released
the text of Mr. Molotov's lengthy
statement following last night's ses
sion The American delegation fol
lowed suit just before the ministers
were to assemble today to continue
discussion of German problems.
During the clash between Mr
Byrnes and Mr. Molotov over the
proposed disarmament plan, the So
viet Minister described the suggested
pact as "whollv inadequate” and as
serted it did not insure against the
rebixth of militarism in Germany.
Mr. Byrnes reported that he was
willing to have the treaty run for
40 years, and that it "did not seek
to cover everything or to settle repa
rations questions and political ques
tions and other questions that had
been under discussion.”
Mr Byrnes also cited his proposal
to send a four-power commission
into all four zones of Occupied Ger
many to investigate the extent of
German disarmament and demili
tarization.
"Then,” Mr. Byrnes said, "the
French representative voted for it
and the United Kingdom represent
'See MINISTERSrPage A-6.) ,
British Delegate Sides
With Russian in Clash
Over Jap Labor Law |
U. S. Member of Council
Soys Soviet Proposal
Smacks of Propaganda
8y the Associated F'ess
TOKYO, July 10 —The Russian
member of the Allied Council for
Japan submitted a 22-point pro
posal for Japanese labor legisla
tion today, touching off a con
troversy in which the British
delegate sided with him against
i the American chairman of the
! council, George Atcheson. jr.
i Lt. Gen. Kuzma Derevyanko's
proposal. Mr. Atcheson declared,
bore "the familiar signmarks of
propaganda."
Gen. Derevyanko countered with:
"I am sorry that the chairman at
tempts—and not for the first time
—to force his understanding of the
Potsdam declaration and to utilize
the Allied Council for propaganda
for his political conceptions."
British Delegate W. MacMahon
Ball asserted he had been studying
j the Soviet suggestions f6r signs of
Communist propaganda, but "just
can't find any. It seems to be quite
a conservative document. I think
it unfortunate when an Allied Coun-,
cil member puts forward a proposal
for the protection and social wel
fare of Japanese workers that such
proposal is automatically stigma
tized as Communist propaganda.”
Highlights of Gen. Derevyanko's
proposal were provisions for the 48-j
hour week, two weeks vacation with'
pay, unemployment allowances and
annuities for the aged.
Mr. Atcheson said neither “Com-;
munism nor Fascism has any right-j
;ful claim to leadership of labor.” He1
| asked the Soviet member whether a
! number of the labor provisions were
: in effect in Russia itself,
j Gen. Derevyanko suggested Mr.
Atcheson "get acquainted with the'
basic laws of the U. S. S. R. and
labor legislation. If this is Insuffi
cient, then I can only advise Mr.
Atcheson to make a trip to the Soviet
Union and get acquainted." More
over, he protested that Mr. Atche
son’s questions on Russian labor
were not within the purview of the
Allied council.
There were other clashes before
the Council adjourned until July 24.
Mr. Atcheson and Gen. Derevy
i anko disagreed on the Russian's
j recommendation that Gen. Mac
1 Arthur order dissolution of a Jap
j anese commission to investigate war
causes. Here also British Delegate
Ball agreed with Gen. Derevyanko.
Mr. Atcheson questioned whether
Council members intended to col
laborate with Gen. MacArthur.
The Russian requested informa
tion on compensation paid by the
Japanese government to former war
industries and proposed such claims
be cancelled. If already paid in
blocked funds he suggested they be
returned to the Japanese treasury.
Lt. Comdr. P. C. Akin, Washing
ton, D. C„ Allied finance officer, told
the Council Japanese Finance Min
istry records showed such claims as
of April 1,1948, totaled 74354,000,000
yen (almost $5,000,000,000),
%
$450 School Pay Raise
And Bridge Measure
Approved by Senate
Bill for Two Four-Lane
Structures Now Ready
For Presidential Action
The Senate paused long enough
today In its consideration of the
OPA bill to pass two measures
affecting the District. They are:
1. A bill authorizing an increase
of *450 in the pay of school teachers
and other employes of the Board of
Education for the fiscal year be
ginning July 1, 1946.
2. A bill authorizing the District
Commissioners to construct two
four-lane bridges to replace the
Highway Bridge.
The bridge measure has already
been passed by the House. It now
goes to the President.
Senator Hoey, Democrat, of North
Carolina, acting chairman of* the
Senate District Committee, asked
unanimous consent for the consid
eration of the bill. It was granted
and then passed without debate
and without an opposing vote.
The teachers' pay bill directs the
Board of Education to make a study
of the pay scales and classification
of the employes of the Board of
Education in accordance with the
District of Columbia Teachers' Sal
ary Act of 1945 to determine what
salary and classification adjust
ments may be necessary.
It is to make a report to the
chairmen of the Senate and House
District Committees not later than
February 1, 1947. The *450 increase
in pay is to take effect as of July 1.
1946. That bill now goes to the
House for consideration.
The two bridges are to cost not
more than *7,000,000.
Truman to Meet Press
President Truman will hold a
news conference at 4 p.m. tomorrow.
Press Secretary Charles G. Ross
announced today.
De Lacy Widens Lead
Over Radio Announcer
In Washington Race
Mitchell Easy Winner
In Senatorial Primary;
Coffee Has Big Margin
By the Associated Pr«»
SEATTLE. July 10—Repre
sentative De Lacy, Washington
Democrat, backed by James
Roosevelt for renomination in
the State primary election,
steadily expanded his lead today
over Howard C. Costigan. radio
announcer, who had the backing:
of another Roosevelt, Mrs. Anna
Roosevelt Boettiger.
Trailing in the early returns in
the 1st district race after the
polls closed at 10 o'clock last night.
Representative De Lacy slowly cut
down the margin of his old rival—
he defeated Mr. Costigan for the
same‘office in 1944—and was lead
ing 18.662 votes to 15.810 with 555
of the districts 771 precincts re
porting.
Trailers in the race were Joseph
D. Roberts, former Army major, and
Henry S. Noon, a Navy lieutenant.
Mr. Roberts had held a slight lead
in the early count.
Incumbents in Front.
Other incumbents, where opposed,
were comfortably in front. Repre
sentative Horan, Wenatchee Repub
lican. led Virgil A. Warren of Spo
kane. 3.614 to 1.012. in 129 of 521
5th district precincts.
Representative Coffee, Tacoma,
had 11.731 votes in 162 precincts to
the 4,027 polled by his opponent.
Burton W. Lyon, jr.. Tacoma Demo
crat. Representatives Jackson. 2d
district, and Savage. 3d district
Democrats, and Holmes. 4th district
Republican, were unopposed.
Senator Mitchell. Democrat, had
42.363 votes in 1.163 of the state's
3.376 precincts, compared to 8.432
for State Treasurer Russell H. Flu
ent, his closes competitor. Harry
P. Cain, former Tacoma mayor, led
his Republican opponent for the
senatorial nomination. J. Parkhurst
Douglass. Tonasket, 50,516 to 6.456
in 1,163 precincts.
Battle of Roosevelts.
Anna Roosevelt Boettiger, a for
mer resident of Seattle, stepped into
the campaign as a Costigan backer
after her brother. James Roosevelt
had declared himself for Repre
sentative De Lacy.
Mr. Roosevelt asserted he was in
a position to know who were his
father's friends and supporters.
Mrs. Boettiger said her Seattle con
nections made her capable of judg
ing the two competitors and she
urged her brother to switch from
Representative De Lacy to Mr,
Costigan. She asserted Representa
iSee PRIMARIES. Page A-6.)
Mihailovich to Plead
BELGRADE. Yugoslavia. July 10
—Defense lawyers were conclud
ing peas today for clemency for
Gen. Draja Mihailovich, former
Chetnik leader and Yugoslav Mini
ster of War. and 23 co-defendants
accused of treachery and collab
oration with the Germans. Mihail
ovich was expected to take the
stand in a last plea for his life
later today.
RFC Denies Faulty Accounting;
Charges 'Double Talk' by GAO
By th* Associated °res*
The Reconstruction Finance Corp.
today accused the General Account-1
ing Office of “double talk" in mak
ing a general denial to GAO’s con- ■
tention the RFC is careiess with ac
counting.
In a report to Congress June 21
the GAO said RFC "does not control
its *7,000,000,000 investments in,
properties.”
Charles B. Henderson, RFC board
chairman, told the House Expendi
tures Committee today the corpora
tion has “a very definite, realistic
concept of the place and importance
of operating and accounting pro
cedures."
Harry A. Mulligan. RFC treasurer,
said in effect the RFC can account
for every cent of its wartime invest
ments. asserting the agency's rec
ords "adequately record the phys
ical assets acquired for each project
I
and as such give adequate control
of the physical assets."
As for GAO's criticism of RFC's
wartime operations, Mr. Henderson
said:
"If during the war RFC used all
the technical accounting methods
and controls that make things easy
for auditors * * * Gen. Eisenhower
and Gen. MacArthur might still be
waiting for the things they needed
to do their job.
"But we did use, and do use,
enough and appropriate measures to
make it possible to render a proper
accounting for the money we use.’
Mr. Henderson told the committee
the GAO charged no irregularity in
RFC, but indulged in "opinions on
technical matters, based on rela
tively short examination.”
The Expenditures Committee
headed by Representative Manasco
Democrat, of Alabama, began an
inquiry after GAO filed the report
on RFC.
New Veto Faces
OPA in Ban on
Meat Ceilings
Bi-Partisan Sena-te
Bloc Also Seeks to
Remove Dairy Items
BULLETIN
The Senate voted. 42 to 34.
today to forbid price controls
on cottonseed and soy beans
and their Droducts in any re
vival of OPA. An amend
ment to decontrol dairy prod
ucts then was placed before
the chamber.
By Associated Press
The shadow of a possible sec
ond veto fell across the moribund
OPA today as a bipartisan Sen
ate majority got set to ban any
future ceilings on milk, butter
and cheese.
Top-heavy with Republicans, this
majority primed the dairy products
exemption as a fresh onslaught
against the administration's price
control revival, already staggering
under yesterday’s 49-to-26 vote to
keep ceilings off meat, poultry and
eggs.
Majority Leader Barkley gloomily
conceded to newsmen that there was
no chance of preventing the addi
tion of dairy items to a control-free
list that appeared likely to inspire
a presidential veto if finally ap
proved bv Congress.
He added he couldn’t be sure,
either, of fending off amendments to
put cottonseed, petroleum, tobacco
and possibly some other products in
the same classification.
Cottonseed First on Agenda.
Cottonseed was first up as the
Senate began the third day of de
bate on a measure Senator Barkley
and other sponsors had forecast the
President would sign if they could
preserve its major provisions as it
came from the Banking Committee.
The meat and poultry decision—.
carried by 31 Republicans and 18
Southern and Western Democrats__
Meat Output Rises
24 Pet. in First Week
Without Price Control
By Ibe Associated Press
The Agriculture Department
reported today that meat pro
duction by Federally-inspected
plants last week was 24 per cent
greater than in the preceding
week, when price controls were
in effect.
This increase reflected heavy
movement of livestock to mar
ket after price controls expired.
However, last week's produc
tion was 38 per cent below that
of the corresponding week a
year ago.
! No figures were available on
last week's production by plants
not under Federal inspection.
Officials said output by such
plants undoubtedly increased
more than did that of inspected
plants.
came on an amendment offered bv
Senator Wherry, Republican, of
'Nebraska. The 25 Democrats and
one Progressive who opposed it ex
pected further setbacks.
But Senator Barkley said he still
is confident the trend will be re
versed when the Senate gets to
what he regards as the even more
important pricing provisions of the
bill
Taft Urges Original Formula.
Senator Taft. Republican, of Ohio,
nas proposed a .return to the formula
of the original OPA measure under
i which manufacturers would be al
lowed price increases to meet aver
age production cost gains in their
i industry since the July 1-15 period
i of 1940. Senator Taft changed only
j the 1941 date of the provision to
which Mr. Truman objected so
strenuously in his veto.
Senator Barkley hoped to beat
■| that wuth a committee-approved
amendment which Senator Taft
charged was ‘ meaningless" because
it had so many loopholes.
The majority leader indicated
that if he can win on the pricing
issue, he will take the patched-up
bill to a conference with House
members, w-ho so far have approved
only a 20-day extension of OPA in
-1 its present form. It was the House
| that sustained President Truman's
veto of the original extension bill.
May Revive Rent Control Only.
Republicans thought that if Sena
tor Barkley last in the battle with
' Senator Taft, he might abandon
i any attempt to revive OPA except
| for rent controls. They said such
a result also was possible if the
House keeps ceilings off meat,
poultry, eggs, dairy products and
other commodities.
Senators Ball, Republican, of
Minnesota, and Millikin, Republican,
of Colorado, told a reporter the ma
jority of their mail suggests that
• See OPA, Page A-6J
Greece Reports Attacks
By Albanian Troops
By the Associated press
| ATHENS, July 10—A foreign
'Ministry spokesman said today the
! government had instructed the
11 Greek ambassadors at Washington,
« London, Paris and Moscow to ”de
' nounce attacks by regular Albanian
, troops against the Greek border and
I ■ invite attention to the serious con.se
! quences which recurrence may en
, i tail.”
i Reports from Yannina said a
• Greek frontier guardhouse near Del
' j vinaki w»as taken Sunday morning
t in a surprise attack and recaptured
i by Greek reinforcements.
>j The reports said two Greek sol
• diers were missing and a third was
wounded.
, They added the attack was made
. by about 80 Albanian soldiers aided
i by members of ELAS, military arm
t of the EAM coalitton of Greek left
ist parties.