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J- . ___' Weather Forecast | Guide for Readers Sunny, temperature around 80 this afternoon. 3 Clear, cool, lowest about 54 tonight. Tomor- Page Page row fair, pleasant. Amusements A-9 Obituary ..A-* TemperatoeTloda^^High, TO, at 12:18 p.m, SSStah’“i K! Sy ""I" £5 it 3:02 pm, low. 49 at ISaST* ' ^orml Articles. A-7 Sports A-ll-13 Full Report on Pate A-8. 1 Pl,iaiicc — A-15 Where to Go B-2 j I Lost and Pound A-3 Woman s Page A-10 _-Cl0S^9 N-J-. Morkets-Soles, Page A-15._ _ _L.. An Assoc^ed-press New^poper-' 94th YEAR. No. 37,389 Phone NA. 5000, D. C., MONDAY, SEPTEMBER 16, 1946—THIRTY-TWO PAGES. *** 5 CENTS Wallace Reaffirms His Views On Russia, Intends to Speak Again Soon on Same Subject Single-Paragraph Statement Ignores Truman Repudiation Secretary of Commerce Wal lace issued a statement today , saying he stands on his New York speech for a softening of Amer ican policy toward Russia and that he intends to speak on the , subject again. Mr. Wallace, in a one-paragraph statement, made no mention of President Truman or of the Presi dent’s repudiation of Thursday night's speech as reflecting this Nation’s foreign policy. The statement said: “I stand upon my New York speech. It was interesting to find that both the extreme right and the extreme left disagreed wdth the views I expressed. Feeling as I do, however, that, most Americans are concerned about and willing to work for peace, I intend to continue mv efforts for a just and lasting peace and I shall, within the near future, speak on this subject again.'’ Cabinet Split Heralded. Mr. Wallace's announcement ap parently heralded a wide-open split in Mr. Truman's cabinet between the Commerce Secretary and Secre tary of State Byrnes, whose aides here and in Paris have made no secret of his bitter opposition to Mr. Wallace's ideas. The fighting tone of what Mr Wallace had said was enough to make it almost certain that the President would have to review at once the whole cabinet crisis aris* ing from the split between Mr Wallace and Mr. Byrnes and de termine whether Mr. Wallace could or could not remain in the cabinet. Mr. Wallace was represented by aides as having no thought of re signing from his job, voluntarily be cause he does not consider that the situation calls for such action— especially since Mr. Truman recog nized his right to make the New York speech. However, if the Presi dent sees fit to ask his resignation, it was said. Mr. Wallace will go right on campaigning outside the Govern ment for the kind of foreign policy he wants. Mr. Wallace talked with the Pres ident by telephone immediately be fore he issued his statement, aides said. They reported he would see the President probably tomorrow, but by Wednesday at the latest. Mr. Wallace is scheduled to speak on "Peace Through Trade” at the first meeting of the Bast and West Association's fair at the Commerce Department auditorium next Mon day night. There was no indication, however, he would take this occa sion to continue along the lines of his New York address. At the White House, Press Secre tary Charles G. Ross said the Presi dent has not talked with Secretary of State Byrnes since Mr. Wallace’s New York speech on Thursday night raised the furor over foreign policy. No Influx of Mail. Mr. Byrnes, leading the American delegation at the peace conference in Paris, has consulted the President by trans-Atlantic telephone fre quently during past weeks. The Wallace speech has not caused any influx of mail to the White House, Mr. Ross also told a questioner. Acting Secretary of State Clayton was scheduled to confer w'ith the President this afternoon, but there were no indications that the talk concerned the controversy over the Wallace speech. Mr. Ross explained , it is a regular thing for the Secre tary of State or Acting Secretary to go over the foreign policy matters with the President each Monday. Returns From Family Farm. Mr. Wallace returned to his office ■ today after a week end at the family farm in Dutchess County. New York Mr. Truman told a hastily-sum moned news conference Saturday that he had not intended to indorse the substance of the speech in which Mr. Wallace called for a loosening oi American ties with Britain, recogn tion of a Russian sphere of influence in Eastern Europe and an end tc ~ (See WALLACE, Page~A-~2.)~ Cubs Lead Dodgers, 5-2, in Filth Inning By the A&socioted Pre»s BROOKLYN, Sept. 16.—The Chi cago Cubs routed the Dodgers’ Leftj Vic Lombardi in a first-inning at tack that netted five runs befori Hugh Casey, relief pitcher, finall; put out the blaze. The Dodgers scored two runs Ii their half, however, and the garni was 5 to 2 in favor of the Cubs ii the fifth inning. Peanuts Lowrey opened the firs for the Cubs with a single to left ani Bob Sturgeon followed with a run scoring triple. Dick Whitman got ; glove on the ball but couldn’t hold il Ed Waitkus drove Sturgeon hom with a double down the right fiel foul line. After Ed Stanky boote Phil Cavarretta’s roller, Marv. Rick ert doubled to left, scoring Waitku and sending Vic Lombardi to th showers. Hugh Casey came in and Clyd McCullough immediately hit a 2-ru single to center and the .Cubs ha five runs in and a man on first wit: nobody out. Casey retired the lies three men in order, leaving McCul lough on third, where he had move on a stolen base and an infield ou The Cubs' Hank Wyse also faile to get anybody out before he gav way to Lefty Bob Chipman and tw Brooklyn runs scored. Stanky doubled to right an scored on Cookie Lavagettos singl to right. After Wyse walked Augi Galan and Dixie Walker to fill th bases, Charley Grimm called ii Chipman. Lavagetto scored on i double play. Chipman then go Pinch Hitter Joe Medwick to retir the side. ft* > ; Wallace Row | Aided Byrnes, Observers Feel 'Firm Line' Policy Seems Approved at Home and Abroad By Newbold Noyes, Jr. Star Staff Correspondent PARIS, Sept. 16.—Contrary to I the predictions of many pessi mistic observers, it seemed today that American influence at the Peace Conference has in n'way been weakened by the interlude which began Thursday with Sec-; retary of Commerce Wallace’s speech and ended Saturday as President Truman renounced his1 previous “misunderstood” en dorsement of what Mr. Wallace had to say about United States foreign policy. The odd truth is that these bum bles back home have probably strengthened the hand of Secre tary of State Byrnes—and of the United States—at the Luxembourg Palace and throughout the world. , Mr. Byrnes’ advisers here think so. For the general uproar which greeted the presidential slip of the lip has, it is felt, shown clearly that the State Department's recent firm line is more solidly backed at home and more widely approved abroad than many, apparently in cluding Mr. Truman, had suspected There is no question but that, diplomatically speaking, the incident, featured Uncle Sam in the low com edy role of a man solemnly hitting himself in the face with a custard pie. But the significant thing about it was that nobody laughed—a point which was not missed by United! I States delegates here. One of them explained: "The audience was too i busy biting its fingernails.” A spokesman for Mr. Byrnes said .yesterday there is no truth to pub-1 lished reports that the Secretary of State talked to President Truman by telephone last week about the! Wallace speech. He emphasized' that from the start of the incident ■See MOVES. Page A-5.'t j Communism Rejected By Reich Voters in Three Allied Zones Red-Dominated Party Wins Only in Soviet Sphere of Government By the Associated Press BERLIN, Sept. 16.—German voters in the American, British and French zones of occupation have rejected Communism as their guiding political philos ophy, at least for the time being. This became apparent today when 'election returns from all four zones of the Reich became available. In the French and British zones’ vot ing yesterday the Communists were snowed under in much the same fashion as in the American zone elections held previously. Incomplete returns from munici pal and rural elections yesterday! show the conservative Christian So cialists won in the French zone, moderate Leftist Social Democrats! Heading after once trailing Inde-i pendents in the British zone and the! Communist - dominated Socialist! Unity party victorious in the Rus sian-occupied provinces of Bran-, denburg and Mecklenburg. Silent Red Faction. Political observers said the Inde pendents in the British zone in cluded disgruntled Conservatives, a Danish minority seeking the re- ] union of Schleswig-Holstein with: Denmark, and a silent Communist | j faction. At the halfway mark, counting in (the British zone was Social Demo-1 ! crats, 2.285,307: Christian Demo-! 'crats. 2,011,319: Independents, 1,885.-! 313: Lower Saxony Farmers’ party,; ,470.403: Communists, 339,146. In the predominantly Catholic! French area, the Communists trailed: far behind the Christian Socialists,! corresponding to the Christian Dem ocratic Union in the British and American zones. Independents, be cause of the local nature of the elec : tions, also piled up a considerable ■ vote. Unofficial returns compiled by the i French Military Government showed ■ the Christian Socialists ahead in all [sections, the Saarland, Baden Baden, the Palatinate and the t j Rhineland. * irencn Area Returns. • The combined returns: Christian i Socialists, 1,090,810; Socialists, 493, 086: Independents, 410,820; Com - munists, 152,356. Liberal Demo crats drew 45,005 votes in Baden 3 Baden and a leftist group called the - party of the Palatinate got 12,293 s votes in the Palatinate. e Tabulations by the provincial ad ministration in Russian-controlled e! Brandenburg from 1.557 precincts t out of 2,300 gave the Socialist unity 3 i party 728,081 votes, the Christian v Democratic Union 220,103 and the t Liberal Democratic party 215,265. -1 The Soviet-backed Socialist Unity 3 party thus repeated the* victories re '• corded previously in Thuringia and 3 Saxony. e In Mecklenburg Province, which 3 is mainly rural, complete returns issued by the provincial administra i tion gave the Soviet-supported party : 601,100 votes, or 68 per cent of the ? ballots cast. The Conservative Chris i -tian Democratic Union received 153. l 130 votes and the Liberal Democratic i party 96,474. t The provincial announcement said : i 84,481 votes cast in Mecklenburg •were invalid. f / f Genuinely Free Trieste Is Called For by Connally Italy and Yugoslavia Told to Subordinate Pride to Peace By Newbold Noyes, Jr. Star Staff Correspondent PARIS. Sept. 16—The United States today told Yugoslavia and Italy they must accept reason able settlement of the Trieste problem—that peace of the world is more important than “inflated national pride.” The voice was that of Senator Connally, Democrat, of Texas, con gressional adviser to the United States delegation at the Peace Conference. He spoke before the Italian Political and Territorial Commission. “The challenge to peace is here," the Senator said. “It is right here on our doorstep, lying right here on this conference table. We must not create another Danzig.” Must Be Free. In a dramatic defense of the American thesis that administra tion of the Free Territory be created in the Adriatic trouble zone must be genuinely international, Senator Connally declared: “The Free Territory «f Trieste must in fact be free—free from Yugoslavia and free from Italy. It must be free from intrigue and conspiracy. Its inde pendence must be secure.” The Senator noted that Russia wanted to see the territory em braced in a customs union with Yugoslavia, a Soviet satellite state. "It is the view of the American delegation that the regulation of customs is a matter for long-term development,” Senator Connally said. “It is our view that this mat ter should be worked out at a later date by the Free Territory and the United Nations.” The Senator made no reference to the controversy arising from last week s speech by Secretary of Com merce Wallace on American foreign policy. Instead, he devoted nearly all his speech to comment on the Trieste proposals made Saturday by Soviet Foreign Minister V. M. Molo tov and echoed this morning by the Yugoslav Deputy Premier, Edvard Kardelj. In an hour-long speech. Mr. Kardelj declared Western powers were attempting to “draw a heavy iron iron curtain around the Medi terranean Sea.” Continues Slav Campaign. Continuing the Slav bloc cam paign for a dominant Yugoslav posi tion in the projected Free Territory of Trieste. Mr. Kardelj said the United States and Britain were op posing Slav demands simply to pro tect their rights and privileges in the Mediterranean. “They are inspired neither by concern for the population of Trieste, nor for the peoples of the interior, nor for the people of Italy,” said the stocky Yugoslav spokesman. Meanwhile, the Bulgarian Politi cal and Territorial Commission voted eight to five along West versus Slav lines to take up Greece’s de mands for a slice of Bulgarian ter ritory and a strategic frontier. The vote came after K. V. Kiselev of White Russia reported the con ference’s secretary-general had ruled a commission could discuss any subject at any time. Slav dele gates walked out of this commis sion Friday when America and Britain sought to consider the Greek requests as a formal amendment. Assails Greece’s Demands. Soviet Delegate N. V. Novikov assailed Greece's demands and called for giving Bulgaria her frontiers as they existed in Jan uary. 1941. This, apparently, meant Russia would abandon her support for Bulgarian claims on Western Thrace, but he did not mention them. Senator Connaliy In his speech on Trieste said the Americans are not at the Peace Conference to further the interest of Yugoslavia or Italy. ‘•Yugoslavs and Italy—I hope they are listening now—are both subordinate to the peace of the area and to the peace of the world,’’ he said. “The free territory must not be a satellite of Yugoslavia (See CONFERENCE, Page A-4.7” Truman Favors Caution in U. S. Job Reduction Cuts Must Not Hurt Essential Services, President Tells AFGE By Joseph Young Star Staff Correspondent ST. PAUL, Minn., Sept. 16.— President Truman today ex pressed his opposition to indis criminate firings of Government employes during the current re | duction-in-force program, in a message sent to the national convention of the AFL American Federation of Government Em ployes. Mr. Truman's message to the opening session of the convention here cheered AFGE officials, who In terpreted the President's statement as meaning that he is opposed to the arbitrary personnel ceilings on indi vidual Federal agencies imposed by the Budget Bureau as pan of the reduction-in-force program. In his message. Mr. Truman de clared that reductions in Federal personnel “are an absolute neces ■ sity,” but he also declared, “yet, at ' the same time, we must make sure ! that we distribute those reductions | in such a way that none of the j essential services of government are j crippled ” Burns Ts “Gratified." Mr. Truman made no specific mention of the. necessity of cutting Federal employment to 1.600,000 i workers by next July as provided wi lder the Federal Pay Act of 1946. con tenting himself with the statement, “we must see to it that we do not ;have any surplus personnel.” James B. Burns, president of the AFGE, declared that “we are very ; gratified by the President’s state ment because that’s exactly the same position we have taken for months. We know that sharp personnel cuts must be made and we dont’ want ex cess baggage on the Federal payroll. But we contend that the arbitrary personnel ceiling system works hard ships on many agencies that can’t j operate efficiently with less person nel. If we are to have efficient gov ieminent, we can’t slash our payrolls indiscriminately.” The Federal Pay Act of 1946 con tains a provision which authorizes the Budget Bureau to set up per sonnel ceilings in government on a quarterly basis in order to fire ap proximately 700,000 employes by next July. Duugei nurrau uiscreuon. However, Congress later passed the Third Deficiency Act which gives the Budget Bureau discretion not to drastically cut personnel in some ageneies if it decides that to do so “would be against the public interest.” To date, however, the Budget Bureau has stuck to the per sonnel ceiling requirements of the Federal Pay Act. In his message. Mr. Truman said: “I am aware, of course, that these are difficult days for the career serv | ice because of the necessity for re ducing the number of persons on the Federal Government's payroll. These reductions are an absolute necessity. We must see to it that we do not have any surplus per sonnel, and yet, at the same time, jwe must make sure that we dis tribute these reductions in such a way that none of the essential : services of the Government are crippled.” Must Strengthen Service. Mr. Truman also said in his message: “Your convention is being held at a very important time. ! Never before in the peacetime his tory of this Nation have Govern ment employes been called on to | discharge as difficult and as com plex duties and responsibilities. If i they discharge them successfully, 'they will make a major contribution | to the preservation of our institu tions. Failure to discharge them effectively would seriously under mine public confidence in our form of government. We must therefore i work together to strengthen our jcareer public service.” After stressing that personnel cuts i must not be made in a way to cripple the functions of government, Mr. Truman declared: “I invite you and the members of you or ganization to do everything in your power help us work out solutions to this and other problems con fronting the public service.” Burns’ Annual Report. Mr. Burns, in his annual report to the convention, sharply attacked the rival CIO United Public Work ers of America and invited discon | tented members of that union to [join his organization, j While not mentioning UPWA by name, he made it clear he had the union in mind by mentioning spe cifically the Atlantic City conven tion of UPWA, at which time the CIO organization adopted a pro Soviet foreign policy resolution. Mr 1 iSee AFGE, Page A-5.)— 100 on Guam, Led by Priest, Boo Officer Who Eluded Japs By th» Associated Press GUAM, Sept. 16.—A group of 100 Guamanians, led by a Catholic i priest, demonstrated with boos and ! placards today against Navy Lt. George Ray Tweed. 4119 North Henderson street, Arlington. Va., tne man who eluded the Japanese during their 31-month wartime oc cupation of Guam. They expressed resentment at Lt. Tweed's assertion in his recent book j that a Guam priest, a Father Duenas, had disclosed a confes sional secret as to where Lt. Tweed was hiding. Word eventually reached the Japanese, and Lt. Tweed escaped capture by a nar row margin, he wrote. Lt. Tweed returned w'ith a new au tomobile as a gift for a Guamanian | friend he credited with helping save j his life during a precarious existence dodging incessant Japanese pursuers j during the war. As the presentation ceremony 1 opened, a crowd of 100 Guamanians marched into the plaza muttering angrily and bearing signs of protest Among the inscriptions were “We Resent Tweed’s Appearance on This Island,” “Our Necks for a Chevrolet’ and “Be Square, Be Decent, Be Off.’ Lt. Tweed strode toward the marchers and snatched a sign read ing “What about Tweed's desertion in the face of the enemy?” and tore it into shreds, stamping it under foot. The Guamanian demonstrators, led by a Catholic priest, booed loudly when Lt. Tweed approached the microphone to speak, but,pres ently marched out of the park in a body, leaving only a few Guaman ians to hear him. Lt. Tweed presented a 1946 Chev rolet to Antonio Artero, the man who showed him a hiding place in the hilly back country of Guam and brought him food once weekly for 31 months. Lt. Tweed said he was sincerely grateful to the many (See TWEED, Page A70 • > Water Front Clashes Threatened as AFL Ignores CIO Pickets Ryan Says Longshoremen Do Not Respect Lines Maintained by 'Commies' By th« Associated Press The 12th day of the Nation wide maritime strike found New I York City's water front tense to-1 day. with threats of clashes be tween thousands of picketing CIO seamen and AFL longshore men, the latter under instruc i tions not to “respect any Commy picket line.” CIO National Maritime Union leaders hauled out their most for midable weapon—the massed picket line w'ith marchers so closely linked it is virtually impossible to squeeze through—as negotiations to end the walkout collapsed. Police strength was bolstered throughout the sprawling docks area. CIO leaders said last night there might be trouble if the AFL longshoremen attempt to breach picket lines as they did Saturday! to help unload the George Wash i insrton. 14 Liners Due Today. Fourteen liners with more than 6,000 passengers—half of them Army or Navy personnel—were due in New York port during the clay. Many longshoremen we'-e on the job along the water front, but they had not passed picket lines to get there. Some men, anxious to return to work after 11 days of idleness, reported for work early, before the CIO pickets were dispatched for duty. Joseph P. Ryan, president of AFL i longshoremen, was covering the I water front in his black limousine, urging his men to go to work where steam was up and winches could be operated. “We don’t respect anv Commy picket lines,” he said. ‘ If the AFL seamen will give us steam well work.” • There was no indication that | AFT seamen, who had the supporc of CIO seamen in the early days! of the strike, would return to work i until members of the rival union, too, had won a pay rise. Great Show of Strength. The AFL seamen won their de mands in a ruling by Economic Stabilizer John R. steelman, but no provisions were made immedi ately for passing the increase along to CIO maritime workers. NMU bosses, consequently, de clared that more than 20.000 of their men in New York port alone would be marshaled for the great est show' of strength ever seen in a maritime labor dispute. ; More than 5,000 were expected to go on the march today. Conferences between officials of the NMU and East and Gulf Coast ship operators were broken off last night when the operators said dis cussions would be “futile” while the NMU coupled its demands with those of two West Coast unions. The operators also refused to con tinue the negotiations because of the NMU’s action yesterday in with drawing security W'atches from ships in Atlantic and Gulf ports, leaving < See MARiTIME, Page A-5.)~ 10 Killed, 44 Injured In New India Riots By th« Associated Press BOMBAY, Sept. 16.—One person | was killed and eight injured today in 'renewed communal rioting in Bom-; bay, bringing the casualty total for the past two weeks up to 258 dead and 790 injured. In scattered disorders in Bombay j and elsewhere, 10 were killed and 44 injured over the week end. An outbreak of stabbings and ex- j plosions in Ahmedabad resulted in j three killed and eight injured. Au- 1 thorities imposed a 24-hour curfewi in disturbed areas to stem fur\her ] violence. In Bombay seven persons were! killed and 35 injured in shooting and stabbing incidents Saturday. By yesterday the outbreaks had begun to taper off, howevy. and only one stabbing was reported. Meanwhile, M. A. Jinnah, Moslem League president, met with Viceroy Lord Wavell more than an hour to day at New Delhi for fresh discus sion about bringing League repre sentatives into the interim govern ment forced by the Congress Party. Neither conferee issued a statement. A Truman to Attend Army-Oklahoma Game Sept. 28 President Truman will fly to West Point September 28 to review the Cadet Corps and attend the Army-| Oklahoma football game, the White! House announced today. Charles G. Ross, White House; press secretary, said this is the only trip now on the President's sched ule. This means, he added, that Mr. Truman is not going to the Caruth ersville <Mo.> county fair, which he has attended lor the last eight years, or to the American Royal Cattle Show in Kansas City next month. The President had been expected to attend both events. Mr. Ross said Mr. Truman is scheduled to leave here by air at 81 a.m. September 28 for West Point, where he will visit cadet classes and j lunch at the cadet mess before at-; tending the football game. After the game, the President will: attend a reception in the quarters of Maj. Gen. Maxwell D. Taylor, su- j perintendent of the Military Acad emy, before flying back to Washing ton. He expects to arrive back here about 7:15 p.m. the same day. Truman Urges U. N. ! To Call Conference On World Resources Study Would Include 'Possible Peaceful Uses' Of Atomic Energy By the Associated Press LAKE SUCCESS, N. Y, Sept. 16. — President Truman today called on the United Nations to1 summon a world scientific con ference on conservation to study global resources, including “the possible peaceful uses of atomic energy w'ithin the next few dec ades.” The presidential request, submit ted to the Economic and Social Council through Delegate John G. Winant, asked the Council to con vene a United Nations Scientific Conference on Resources Conserva tion and Utilization in the last six months of 1947 somewhere in the United States. Declaring that conservation “can become a major basis of peace,” the President said: "Warfare has taken a heavy toll of many natural resources: The re building of the nations and the in dustrialization of under-developed areas will require an additional large depletion of them. Waste, destruction and uneconomic use of resources anywhere damage man kind’s common estate. Would Eliminate Fear. “The real or exaggerated fear of resource shortages and declining standards of living has in the past Involved nations in warfare. Ev ery member of the United Nations is deeply interested in preventing a recurrence of that fear and of those consequences.” The United States proposed that a preparatory committee be set up (See U. N., Page A-4.i ~ 1 Increase of $205,848 Asked by Keneipp to Expand Traffic Control Police, Fire Departments Also Seek Larger Budget for Next Year By John W. Thompson, Jr. Traffic Director George E. Keneipp has asked the District Commissioners for $792,000 to expand his department during the fi.mtl year beginning next July 1. The amount is $205,848 above the current appropriation and contem plates 27 new jobs. Eariler, Budget Officer Walter L. Fowler disclosed the police and fire department requests looking toward improving the city’s protection in general and the area east of the Anacostia River in particular. The Police Department asked a total ol $6,230,000, as compared with $5,230, 000 currently appropriated. The Fire Department sought $4,423,000 against current allocations of $3, 106.000. I To Bolster Engineering Section. Mr. Keneipp's plans for the com ing year include bolstering the en gineering section of his departmenl to carry on an 11-point study and improvement program for city traffic handling. The points are: 1. Maintenance of “minimum war rancies" for new traffic light instal lations, so the new signals would be installed and old signals retained only at locations which, according to continuous studies, meet the mini mum justifications. 2. Continuous checks of traffic volume at intersections controlled by signal lights to adjust the timing as often as needed to insure maxi mum efficiency. Central Light Control Planned. 3. Pians for the development of a system of centralized control of traf fic light timing to enable variance of the timing of any light within a given area immediately. 4. Overhaul the traffic sign sys tem to eliminate unnecessary and conflicting signs and replacement of those disfigured or illegible. 5. A '‘stop” sign survey to remove those unnecessary and add new ones where needed. 6. A systematic program of re painting traffic lanes and parking meter zones, and installation of dur able markers. 7. Study of the need for more one way streets. 8. Establishment of better cross town streets. Study of Accident Frequency. 9. Study of accident frequency at certain streets and intersections and institution of corrective measures. 10. Adoption of a city-wide policy for traffic movement on all streets 30 feet or less In width either by removing parking on one or both sides or making them one-way. 11. Determination of pedestrian protection needs, wide use of barri cades at dangerous crossings. The largest part of this program was approved by the Commissioners about a year ago in their $555,000 five-year postwar traffic plan. High light of the police estimates submitted by Police Chief Harvey G. Callahan was a request for 111 ad (See BUDGET, Page A-5.) WAA Opens $4,000,000 Safe Of War Surplus for Veterans By Robert K. Walsh Star Staff Correspondent NEW ORLEANS. Sept. 16.— Several thousand veterans who turned out for a War Assets Ad ministration experimental sale of $4,000,000 in surplus property, ranging from soap powder to carpenter's tools, were told by Representative Manasco, Demo crat, of Alabama here today that Congress never intended to give purchase priorities to UNRRA, the United Nations and similar international organizations. The Alabaman, who with Senator O’Mahoney, Democrat, of Wyoming, spearheaded congressional enact ment last May of amendments rais ing the priority position of,veterans in buying surplus goods, joined high ranking WAA officials from Wash ington in the test to determine whether surplus consumer goods can be bought by veterans as quickly and conveniently from the Govern ment as “from a department store.” The experiment, if successful, is ex 's ipected to revolutionize the method of selling most surplus materials to veterans in all parts of the country. Mr. Manasco declared that as soon ]as Congress reconvenes he will intro | duce a bill “to plug the loophole and make sure that when we tell you veterans we are giving you priorities on surplus property the intent can not be defeated by a Government agency under the guise of the second War Powers Act or some other vague statute.” The "loophole” to which he re ferred, he said, was an interpreta tion by which "attorneys for certain Federal agencies have decided that UNRRA and the United Nations have the right to exercise Federal priorities because the United States Government is a large contributor to those organizations.” Representative Manasco con tinued: “If this line of reasoning is sound, every corporation from whom the Government purchases property is entitled to exercise a Federal priority in the purchase of (See SURPLUS, Page A^T) * D. C. Tax Raise, Bigger U.S. Fund Urged at Hearing Board of Trade and Federation Cite Need For $9,000,000 More (Pictures on Page B-l.) Two major civic organizations today recommended to the Com missioners a combination* of in creased Federal payment and expanded taxes to prevent the District from going some $7,000, 000 “in the red'’ by next July 1 in maintaining present munici pal services. Testifying at the first public tax hearing at the District Building since 1938, spokesmen for the Board of Trade and the Federation of Citizens’ Associations broadly joined hands in a solution for the difficul ties, although they differed in a few details. Former Engineer Commissioner David McCoach, jr., speaking for the Board of Trade, told the city heads 1 that board computations place city | revenue needs at $9,000,000 annually ! in addition to the sums that present axes and the Federal payment are producing. He called on the Commissioners I to set as their “primary'' objective passage of the O'Mahoney bill link ing annual Federal payment td ; national landholdings here, and ; proposed that the difference be | made up through a broadened per i sonal income tax. a 5 per cent tax j on unincorporated businesses and I increased liquor levies. l ump sum Formula Asked. Following him to the witness table, K. P. Armstrong of the Fed eration urged that before any new forms of taxation are imposed on District citizens “some formula should be established by law to require the annual payment by the National Government to the District Government of an equitable sum of money in lieu of taxes for mu nicipal services received by it." In addition. Mr. Armstrong said his organization favored income and I liquor tax increases, but opposed the ! tax on unincorporated businesses 1 because such businesses now escap ing taxation would be caught In an | extended personal income levy. While the Board of Trade pro posed an alternate program mclud j ing a sales tax, a levy on gross j earnings, or still further increases 1 in liquor taxes if its original pro j posal was unacceptable in whole or in part, the Federation turned ! thumbs down on a sales tax and the j other revenue-raising proposals of the Commissioners’ special tax com mittee headed by Corporation Coun sel Vernon E. West. 30 Groups Wait to Testify. About 30 citizen groups were : waiting their turn to testify at i the first public tax hearing at the District Building since 1938. The hearing follows by less than a w;eek submission to the Commis sioners by their department heads of an all-time record $135,888,195 money requests for the coming year. In brief preliminary remarks to the organizations' spokesmen Com missioner John Russell Young pointed up the impending city fiscal crisis. “On the basis of present taxes.’* he declared, "the estimated rev enues which would accrue to tha District in the fiscal year begin ning next July 1 fall some $7,000,000 short of providing the necessary amount to continue in that fiscal year the present public services now being rendered the people of the District.” In addition, he said, "there is a 1 tremendous accumulation" of ur gently needed public Improvements | necessarily postponed during the | war period, but many of which can j not be deferred much longer. Gas Tax Boost Not Argued. ! Mr. Young asked the witnesses to i limit their remarks to the proposed j new taxes for the general fund I °nly, indicating that the proposed | gas tax increase would not be | argued today. The broadened income and unin ! corporated business tax proposals ! and increases in the liquor levies {were taken from the earlier recom | mendations of the Commissioners’ : Special Tax Committee headed by | Mr. E. West. j Other recommendations of the West Committee included a 2 per | cent sales tax. a 2 per cent tax on I utility bills, a 1-cent tax on each j package of 20 cigarettes and a 10 I per cent tax on ticket prices at amusement places. Broadening the income tax was expected to receive general approval but liquor interests were understood to be ready to fight the liquor levy increases and amusement spokes men were believed ready to oppose the ticket tax. Gen. McCoach said the O'Ma honey proposal would add $4,000,000 to the District income in 1948 while the income tax broadening and the 'See D. C. TAXES~Page~A-5.) * 12 Greek 'Bandits' Slain In Skirmishes at Bridges By th* Associated Press ATHENS. Sept. 16 —The Ministry of Public Order today reported 12 "bandits” killed in skirmishes as two bridges between Kalabaka and Ioannina were destroyed and 27 telegraph poles cut down in con tinuing efforts by leftists to disrupt communication lines in Northern Greece. Seven persons were slain in a battle on the Island of Kephallenia and five others were killed north of Larisa, the ministry said. Twenty gendarmes and soldiers seized by a leftist band in a battle Saturday at Oivadi were stripped of their clothing and arms and released. Police said unidentified assailants shot to death a Communist last night in the Kaissariani section of Athens. In this city’s fashionable Colonaki section, a hand grenade was thrown this morning at a police patrol, but no casualties were reported. *