Evening star. [volume], September 23, 1946, Image 1

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

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Harriman Gives
Full Support to
Truman, Byrnes
Foreign Policy Has
Backing of Public
Opinion, He Says
By the Associated Press
LONDON. Sept. 23.—Full sup
port for the foreign policy o:
President Truman and Secretary
of State Byrnes was pledged to
day by W. Averell Harriman
newly appointed as Secretary 01
Commerce to succeed Henry A
Wallace. Mr. Harriman saic
America's policy is carrying or
the high principles laid down bj
President Roosevelt.
His promise was given in a state
ment issued here this morning aftei
his return from a week end in th<
country.
He told a news conference that
“American foreign policy, in the last
analysis, is based on American pub
lic opinion, and I think the main
body of American public opinion is
supporting Mr. Truman and Mr
Byrnes.”
The Secretary-designate said the
President first mentioned the ap
pointment in a telephone call Sat
urday evening, for. Harriman said
he "asked him to give me until
Sunday.” Late Sunday night Mr.
Truman called again and Mr. Har
riman accepted.
Asked if he planned to take part
in the election campaign. Mr. Harri
man replied "I haven't given that
question any consideration at all."
Embassy sources said Mr. Harri
man planned to go to Paris within
the next few da>f. giving him an
opportunity to talk with Secretary
of State Byrnes.
nic ie\i oi uie namraau state
ment follows:
“I welcome the opportunity of
joining Mr. Truman's cabinet as
Secretary of Commerce. I know
the department well, as I was an
active member and then chair
man of the Business Advisory Com
mittee of the Department of Com
merce during Mr. Roosevelt's first
two terms.
“During the past six years in
representing Mr. Roosevelt afid Mr.
Truman on various missions I have
had the opportunity to learn at
first hand of grave economic prob
lems that face the peoples of
Europe and Asia. They look to us
with hope and faith for help and
moral leadership.
“In playing our part in world
reconstruction the development of
a stable and expanding economy
at home is of primary importance.
Expanding peacetime productivity
in the United States, available for
the needs of all our people and
for export as well, is the essential
and sound foundation or prosperity
and happiness at home and for
our ability in co-operation with
other nations to offer a continuing
helpful hand to people of the world.
“It is an essential base for the
lasting peace that all peoples crave.”
"I fully support the foreign policy
of Mr. Truman and Mr. Byrnes who
are carrying on the high principles
laid down bv Mr. Roosei elt. There
lies the road to peace.”
Appointment Seen Giving
Truman United Cabinet
President Truman's selection of
W. Averell Harriman to succeed
Henry A. Wallace as Secretary of
Commerce gives him a cabinet
united on policy toward Russia and
apparently edged it toward the right
on domestic issues.
Mr. Harriman, whose appointment
was announced unexpectedly last
night, is widely credited with having
had a major hand in framing the
present policy of firmness toward
Russia. It was Mr. Wallace's public
disagreement with this policy which
led Mr. Truman to oust him from
the cabinet last Friday after the
controversy embarrassed Secretary
of State Byrnes at the Paris Peace
Conference and caused a furore at
home.
There was no immediate word
just how soon Mr. Harriman would
take office. Since his is a recess ap
pointment. tnajt is. made when Con
gress is not in session, he can take
over without waiting for the Senate
to confirm it.
Mr. Harriman gained his ideas
of how to deal with the Russians
first in handling lease-lend aid to
them and later in more than two
years as Ambassador to Moscow. In
personal relations, those ideas
worked. He was highly popular.
.1 rormai nepuoiiian.
Politically, the new Secretary
designate is, like Mr. Wallace, a
Republican turned New Dealer. Now
55, Mr. Harriman was born to
wealth and became a Wall Street
banker. He and a brother inherited
some $100,000,000 from their father.
E. H. Harriman. the Unioh Pacific
Railroad magnate.
But he supported A1 Smith, the
unsuccessful Democratic presiden
tial nominee in 1928. and cam* un
der the New Deal banner when the
late President Roosevelt unfurled it
in 1932.
Despite this new dealish back
ground, Mr. Harriman is far away
from Mr. Wallace on many social
and economic issues. There is nc
tinge in the appointment of any
bid to the CIO Political Action
Committee and other groups which
follow Mr. Wallace.
“With the appointment Mr. Tru
man now has a cabinet almost en
tirely of his owrn'selection. Naval
Secretary James Forrestal, ap
pointed to the cabinet May 10, 1944
on the death of Frank Knox, is
the only remaining cabinet appoin
tee of the late President Roose
velt.
Shift to Right Seen.
Tn the changes, the general ap
praisal among politicians is that the
cabinet's political complexion has
shifted to the right a bit from what
President Roosevelt used to call the
“left of center" course of his ad
ministration.
The White House announced the
Harriman appointment yesterday
under circumstances which indicated
• See "HARRIMAN, Pa«e A-14.)
! U. S. and Britain Play Politics
With Refugees, Reds Charge
Refusal to Consider Russian Proposals
Increased Problems, U. N. Group Is Told
PAULEY REPORT ON JEWISH
refugees called political "hot po-‘
tato.” Page A-2
By the Associated Press
LAKE SUCCESS, N. Y„ Sept.!
23.—The Russian delegate to the
; United Nations Economic and
Social Council in effect accused
the United States and Great!
Britain today of converting the
world's refugee problem into a
! political football,
j Nikolai Feonov, the Soviet dele-j
i gate, spoke for 35 minutes in level
ing charges against the two gov-1
ernments, and declared flatly that
, the United Nations has been "a
: failure” in handling displaced per
, sons and refugees.
“If from the beginning the United •
States and the United Kingdom
had nor opposed all our proposals |
we should not have such a complex
problem.” he said. "The Soviet)
; Union said from the beginning that
it was a human problem. Somej
other delegations see from a polit
j ical angle.”
The' Russian delegate took the
; floor as the Council renewed con-1
sideratlon of setting up a vast in
ternational relief organization to
care for approximately 900,000 per
sons. The proposed relief organ
ization, with a budget of $258,000.
000, has been opposed by the Soviet
and Latin American countries.
Mr. Feonov assailed the Amer
ican-British position on four main
points:
1. Repatriation in general: Here
the United States and Britain want
to insert the clause, "Those who
want to return.’’ from the displaced
camps to their countries of origin.
The Russians demand that all per
sons go back to their own countries.
2. Investigating committees: Rus
sia insists that committees visit
throughout the German area to ex
amine conditions and what it terms
•propaganda" against the native
lands of the persons.
Demands Complete Lists.
3 Lists: Tlie Soviet Union de
mands that complete lists of all per
sons be submitted to their home gov
ernments and contends the United
States and Britain have refused to
allow this move.
4. Orphans: Russia wants the im
nediate reparation of orphans and
i See REFUGEES, Page A-I4.)
Robeson Delegation
Calls on Truman to
Protest Lynchings
Negro Singer Says Talk
Was Friendly, but Became
'Sharp at Times'
Paul Robeson, colored baritone
who has been taking a leading
role against mob violence in the
South, said today, after a White
House visit, that he had told
President Truman that if the
Government does not do some
thing about lynching,"the Negro
will.”
i Mr. Robeson was head of a bi
racial delegation of nine persons
; who spent almost a half hour with
' the President this morning. The
conference, the singer said, was
very friendly.
However, according to Mr. Robe
son's report of the interview, the
discussion became quite sharp at
times. It was suggested to the
President, Mr. Robeson said, that
the trial of war criminals in Ger
many meant little when men who
were guilty of race murders went
unprosecuted in the United States.
Attacks Byrnes.
•'The President took great excep
tion to that.” Mr. Robeson said,
“and declared that we should stand
by our country in foreign affairs,
regardless of the domestic situa
tion.”
Mr. Robeson said he then told the
President that Secretary of State
Byrnes, “one of the statesmen of the
South, had very little world strength
today iri representing that he stands
for a great democracy.” *
Mr. Robeson said the President
also took great exception to this.
When asked by a reporter if he
was a Communist, Mr. Robeson said
he was not.
“I label myself a very violent anti
Faxcist,” he declared.
•'I Suggested to the President,” he
continued, “that the temper of the
Negro had changed and that some
national emergency might occur
that would demand intervention in
the South.”
Again Mr. Robeson reported that
the President took exception to this.
Recalls Washington Incident.
It was at this point that Mr.
Robeson added that he had told
the President that if the Govern
ment does not do something the
Negro will.
Asked by reporters what the
Negro would do he countered with
a question: "What did they do in
the streets of Washington not so
many years ago?"
He said Mr. Truman felt that
there were political matters which
would make it very difficult to issue
(See ROBESON, Page A-i5.)
Yugoslavia Counters
U. S. Indemnity Plea
By the Associated Pres*
Yugoslavia, it was learned today,
has sent the United States a coun
terproposal to the American-indem
nity demand of almost $400,000 for
the shooting down of two Army
transports and the deaths of five
flyers.
State Department officials have
the Yugoslav reply under considera
tion. It is expected to be made
public early this week.
While no official information has
been given out, indications are that
Marshal Tito has rejected the
American insistence on payment for
the property damage suffered in
the loss of the two planes, while ex
pressing specific willingness to make
compensation for the lives lost.
The planes were shot down Au
gust 9 and 19.. The passengers and
crew of the first craft, which crash
landed after being hit by Yugoslav
fighter fire, escaped death.
But all five aboard the second un
armed transport died. Their bodies
were recently returned here for
- burial.
Authorities here let it be known
that the indemnity request totaled
between $300,000 and $400,000. The
exact amount was withheld, evi
dently in anticipation oi negotia
tions with Tito which might change
the figure.
A week ago Undersecretary of
State Will Clayton told a news con
ference that Tito had agreed in
principle to the payment of Indem
nities for the lives of the five fliers
but objected to paying for the lost
aircraft. There has been no infor
mation since to indicate that the
Belgrade government had changed
its position in refusing to compen
sate for the loss of the planes.
A
l s
British Take 588 Jews
Off Ship at Haifa for
Removal fo Cyprus
Soldiers and Seamen
Seize 100 Who Tried
To Swim Ashore
By th«f Associated Pres»
HAIFA,’Palestine, Sept. 23.—A
group of 5S8 illegal Jewish refu
gees was transferred today from
the schooner Palmakh to the
British troopship Ocean Vigor
for deportation to Cyprus after
soldiers and seamen rounded up
i nearly . 100 who plunged over
board in an attempt to swim to
shore.
Nine sick refugees were taken
ashore. The body of a passenger!
killed yesterday in the fight which j
ensued when British sailors board-!
ed the schooner was turned over;
to the Jewish Agency. Immigrants!
told authorities that four of their
number died en route to Palestine
and were buried at sea.
The Palmakhs passengers were
the sixth shipload of refugees or
dered transferred to Cyprus under
the new British policy of deporting
Jewish immigrants who reach Pal
estine without certificates authoriz
ing them to enter the country.
130 Legal Refugees Arrive.
Simultaneously with the transfer
of the Palmakh’s passengers, the
yacht Helopolis arrived in Haifa
Harbor.with 130 legal immigrants
aboard.
The only foreign correspondents
permitted to witness the actual
transfer of the refugees to the Brit
ish troopship were one British, one
American and two Jewish newsmen.
They were taken to the scene in a
launch under an arrangement
whereby they accepted the govern
ment's offer of a trip to Cyprus with
i the refugees aboard the Ocean Vigor
Later the launch arranged to take
i out other newsmen, but it arrived
after the transshipment had been
completed.
Correspondents, who had been
asked by the public information of
fice to be at the docks at 9:30 a.m.
and finally were allowed to board
the launch? at 2 p.m. drafted a letter
to the PIO and the Army public re
lations office protesting what they
called the “utter stupidity and in
competence apparent in today's
fiasco."
Army officers had tried to per
suade the refugees on the Palmakh
to send a delegation to talk over
arrangements for their transship
ment. They refused, and almost 100
attempted the desperate dash for
land.
Pick Up Swimmers.
Police and Navy launches picked
up swimmers between ship and
shore, and six British soldiers dived
into the water, fastened ropes to
some of the swimmers and towed
them to the launches.
All Jewish shops closed in Haifa
this morning and two rabbis led a;
procession in protest against a Brit-!
ish refusal to turn over the body of
the slain refugee.
British soldiers at a roadblock fired
over the heads of the marchers to
stop them. The crowd then broke
up at the urging of moderate leaders.
Jew-s are required by their x re
ligion to bury their dead within 24
’ 'See PALESTINE, Page A-mT"
Indemnify Plan
Menaced as U.S.
Backs Red Sfand
America Abandons
Demand for Full
Romanian Damages
BULLETIN
PARIS.—The Big Four For
eign Ministers will meet at 4
p.m. tomorrow, it was an
nounced this afternoon by
Georges Bidault, French Pro
visional President and Foreign
Minister. Ways and means of
speeding up the Peace Confer
ence, stalemated for several
days, will be discussed, Mr.
Bidault said.
By the Associated Press
PARIS, Sept. 23.—The United
States, siding with Russia, aban
doned today the principle of full
compensation for Allied property
losses in Romania. The move
capsized the whole indemnity
structure of the Peace Confer
ence
Willard Thorp, State Department
economic expert, told the Balkan
Pinnish Economic Commission the
United States had become convinced
Romania could not support all rep
arations and compensation burdens
placed on her by the original draft
treaty proposals.
Russia has been fighting from the
start for the principle of only one
third compensation for property
losses suffered by private United
Nations individuals and concerns in
defeated countries.
Britain Stands Firm.
France, which joined the United
States in a similar move before the
Italian Economic Commission last
week, declared after Mr. Thorp's
statement that it reserved the right
to modify its position later.
Britain declared the move had
changed the situation, but implied
it would hold to its original 100 per
cent compensation plan.
The American surprise move came
as an amendment to article 24 of
the Romanian draft treaty, which
has stymied the commission for
seven meetings. The United States
did not state what percentage of j
losses it would ask in compensation.\
Mr. Thorp said full compensation
for damage to United Nations prop- j
erty would mean Romania would;
have to pay $70,000,000, of which \
$50,000,000 represented damage to oil j
property by Allied bombings or de- 1
molition by retreating Germans. Of !
this amount, he said, $10,000,000 has j
been paid.
However. Mr. Thorp added, resti- j
tution of loot by Romania would
cost that country $125,000,000, main
taining Russian occupation troops
$325,000,000 and reparations to the
Soviets another $300,000,000. He ar
gued that this total of $750,000.000—
omitting the total compensation
charges—was enough for a small
country such as Romania to pay.
A Romanian spokesman told a
meeting of the commission yester
day that Allied holdings in Romania
amounted to more than $200,000,000
before the war, of which $150,000,000
represented oil properties.
The spokesman. I. G. Maurer, Ro
manian undersecretary of communi
cations, appeared at the invitation
of the commission, which held a
special Sunday session to speed its
work. He said Romania had spent
$1,000,000,000 on the war after she
broke with Germany and joined the
Allies—including $300,000,000 spent
on Russian troops.
Bevin Seeks Meeting. •
Meanwhile. British Foreign Secre
tary Ernest Bevin, who returned to
Paris over the week end after spend
ing two weeks in London conducting
conferences on Palestine, met sep
arately today with French President
Georges Bidault and Soviet Foreign
Minister V. M. Molotov. He sought
to convene the Council of Foreign
Ministers within the next 48 hours,
a British Foreign Office spokesman
said in London. Mr. Bevin's.return
brought tha Council back to full
strength for the first time since
August 31, when Mr. Molotov went
to Moscow.
Mr. Bevin also proposed the meet
ing when he conferred with Secre
tary of State Byrnes Saturday.
After rejecting two Yugoslav
amendments, the Italian Political
and Territorial Commission adopted
Article 13. guaranteeing citizenship
"in the states concerned” for Ital
ians living in territory transferred
from Italy.
Former Premier Tvanoe Bonoml,
chairman of the Italian Assembly’s
Foreign Relations Commission, pre
saged discord on the question of
Italian colonies by declaring that
if the conference adopted the For
eign Ministers’ proposal to set aside
for a year the disposition of Italy's
possessions in Africa. Italy should
<See CONFERENCE, Page A-4.)
Secret Nazi Files Fail to Reveal
Any Attemptto Invade England
By tho Associated 'mi
The War Department said today
that so far as could be discovered
from the mass of secret Nazi war
documents no German attempt to
invade England ever was made.
A War Department official saidj
no evidence had been found to sup-;
port reports—current both before j
and immediately after the Allied
invasion of Normandy in June,
1944—that Hitler had made an
abortive attempt to send a fleet of
invasions barges to England.
These reports declared approx -1
imately 50,000 German troops were
killed when the Royal Air Force
swooped down on the would-be in
vaders, dumped oil on the seas and,
destroyed the armada with flaming!
death.
Purported eyewitness corrobora
tion of these reports, written by
British newsmen after the Nor
mandy Invasion and quoting French
and Belgian nurses who claimed to
have treated some of the few Ger
A S
man survivors, was recalled in con
nection with the War Department’s
release of a volume of Nazi docu
ments seized after the surrender of
Germany.
One of the documents, marked
‘‘strictly secret,” told of a con
ference between Nazi Foreign Min
ister Joachim von Ribbentrop and
Japanese Ambassador Oshima on
February 13. 1941. and quoted Rib
bentrop as saying:
"The landing in England is pre
pared. ’
The War Department official told
a reporter, however, he doubted that
the Germans ever attempted to
stage a cross-Channel coup. He
noted that by February, 1941, the
Royal Air Force already had won
the Battle of Britain and that
Hitler realized he could not under
take an invasion without cpntrol of
England’s skies.
Another document in the War
Department's volume, entitled “Na$l
(See NAZI DOCUMENTS, Pg. A-3.)
4
PLeAst'stve rusM rue BRAKES! ;
Children Should Be Seen and Not Hurt!
U. S. Seeks to Mediate
West Coast Dispute
Ot Longshoremen
Another Tieup Threatens
As Last of Striking
Unions Returns
By the Associated Press
The Labor Department moved
today to avert another tieup of
the Nation’s ports by assigning
a mediator in the West Coast
longshoremen dispute which
threatens to disrupt the mari
time peace reached yesterday.
The two-week blockade of ports
was ended today after the last of
striking unions voted to go back
to work.
The Marine Engineers Beneficial
Association <CIO) will begin nego
tiations for a new contract with
shipowners in New York today and
the Masters. Mates and Pilots iAFL>
will seek new- contract terms in
meetings to begin tomorrow.
All three of these organizations’
contracts expire September 30. All
three are seeking higher wage rates.
Secretary of Labor Schwellenbach
named Nathan Feinsinger of the
University of Wisconsin as medi
ator in the West Coast longshore
men's dispute. Mr. Feinsinger previ
ously has represented the Labor
Department in West Coast mari
time matters.
Last Unions to Return.
Meanwhile, the7 last unions to
join the back-to-work movement
were those on the West Coast, which
voted Saturday night to return to
their jobs after the Maritime Com
mission placed maritime wages on
a parity for the first time.
The Maritime Commission di
rected, in effect, that maritime
workers on all coasts will get $27.50
a month mbre than they received
under their old contracts. Pre
viously there were differences of
$5 or $10, depending on the union'
and the coast.
The last hold-out union was the
Marine Firemen (Independent),
which voted to return to work after
other West Coast CIO unions had
announced they were ready to go
back to their ships. The Marine
Firemen and six CIO maritime
unions are affiliated in the Com
mittee for Maritime Unity. CIO
unions on the East and Gulf Coasts
voted Friday to return to work.
A jurisdictional dispute between
AFL and CIO seamen's unions over
one ship, the Makaweli, manned
entirely by AFL men after its
transfer from the Matson Naviga
tion Co. to the Great Lakes Navi
gation Co., kept 40 vessels idle at
Los Angeles while CIO men picketed
the docks.
Operations on Increase.
At Boston. 20 ships were back in
operation and a like number were
being worked at Baltimore. Both
these ports and New York expected
almost normal operations today.
Eleven of the 50 ships released
at New Orleans already have sailed
and the remainder are expected to
(See MARITIME, Page A-2.)
Major League
Games
AMERICAN LEAGUE
At New York—
Philadelphia 201 00 —
New York ... 340 10 —
Batterira—Savace and Kotar; Raichi
and Berra.
(Only Game Scheduled)
NATIONAL LEAGUE
At Chicago—
St. Louis_ 001 000 0 «
Chicago _ 000 000 0 —
Batteries—Brecheen and Garaciola: Writ
and MeCulleiKh.
At Brooklyn—
Philadelphia 001 000 —
Brooklyn .J 0(0 10 —
Batteriea—Kaffenabercer and Heaasler;
Melton and Edward*.
(Only Games Scheduled)
Today's Home Runs
American League %
Bern, New York (2d).
7
Fall Makes Official Arrival;
Summer Left at 10:41 A.M.
Summer departed at 10:41 o'clock
'this morning and fall is officially
here. At least, that’s what the
j Weather Bureau says.
The therometer, however, doesn’t
| seem to realize it. for the forecast
it mostly cloudy and mild tempera
tures with a few showers today and
tonight: highest temperatures around
[85 degrees and a low of 70 degrees
tonight. The humidity was 93 per
Icent at*7:45 a.m.
The last full day of summer had a
i high of 85 degrees at 2:56 p.m. and
a low of 67 degrees at 5:24 a.m. Yes
terday’s humidity reached a 99 per
Icent at 8 a.m., but went down to a
low of 54 per cent at 3 p.m.
A brilliant display of the northern
lights, or aurora borealis, was seen
[here Saturday night, but clouds hid
the phenomena last night, the
Weather Bureau said.
D.C.School Enrollment
May Top Predictions;
1,400 Are Veterans
Accelerated Courses
| In High School Work
Attract Large Number
; An estimated 82,000 students
jfrom kindergarten to teachers’
college returned to school today
' as the fall term of the District
public schools got under way.
Early indications, were that total
enrollment after opening day may
surpass the earlier prediction of
82,000 students, according to Dr.
Carroll Reed, assistant superinten
dent of schools. However, complete
figures on the enrollment would
not be complete until late tonight,
he said.
At the Veterans’ High School Cen
ter in Central High School, Thir
teenth and Clifton streets N.W.,
nearly 1.400 veterans jammed the
auditorium this morning to hear
Dr. Robert G. Vanderlip. director
of the center, welcome them and
outline the day’s activities.
Standing Room Only.
So many more veterans than
expected turned up to ask for the
accelerated high school courses thatj
there was standing room only.
Dr. Vanderlip said today would
be devoted to getting Veterans' Ad-i
ministration business completed;
with the men. By Tuesday classes
should be scheduled, and by Wednes-,
day and Thursday most of the ex
servicemen will have started back,
to school.
The greatest handicap to the vet-i
erans’ center program is lack of
teachers and space, Dr. Vanderlip,
pointed out.
“Somehow, we are going to take
care of all the men, but it’s going to j
be a problem,” he said.
Meanwhile, Dr. Reed announced
that he and Norman Nelson, as
sociate superintendent of schools,
were going to make a survey of the
District elementary schools, later
today after registration had been
< See SCHOOLS, Page A-4.) ~
WAA Official Blames
Personnel Lack for
Electronics Sales Jam
Inquiry Reveals Agents
Get No Commissions
On Deals With Veterans
An official of the War Assets
Administration today told a
House committee that “lack of
space and personnel-’ was a
reason why the WAA was unable
to “process” applications from
10,000 veterans for the purchase
of surplus electronics materials.
The witness, Frank R. Creedon,
deputy administrator for general dis-;
posai of WAA, was closely ques
tioned by Hugh D. Wise. jr„ chief
counsel of the House Surplus Prop
erty Committee, conducting the elec
tronics sales probe, as to what ef
I feet the WAA system of employing
industry agents had on the process
j mg of veterans’ priorities.
Mr. Creedon said he was unaware
'that WAAs industry agents got no
commission if the surplus materials
were sold to veterans. Mr. Wise
had brought out that WAA's agents
received a commission of 10 per cent
on sales prices, plus allowances to1
cover the costs of their sales work.
Exceptions were sales to veterans'
and sales to Government agencies,
according to Mr. Wise.
Total Sales $97,500,000.
Mr. Creedon submitted to the
committee a cumulative sales report
to show that from the inception
of the electronics sales program
through June 30 WAA had sold
about $97,500,000 worth, according
to the Government's acquisition
costs, and had got returns from this
totaling approximately $29,000,000.
The report showed that disposal
expenses, including commissions, to
WAA agents, and the costs of their
sales work, amounted to $9,400,000.
For June alone, the report showed
sales totaling nearly $25,000,000. at
the acquisition cast, for which the
(See WAR ASSETS, Page A-4.)
Man Crushed UnderCement
Dumped on Car in Crash
James T. Thiede. 21. of 8426 Piney,
Branch road. Silver Spring was seri
ously injured today when crushed
under a load of cement after his au-1
tomobile collided head-on with a
truck at the intersection of East
West highway and Brookeville road.
Chevy Chase.
Mr. Thiedo was taken to Sub
urban Hospital suffering from in
ternal head injuries and cuts. |
Montgomery County policemen Paul
Alexander and Robert Kuster re
ported that the Chevy Chase rescue
squad had to cut away the door of
the car to get him out because the
truck overturned, dumping its load
of cement on top of the car and
crushing it.
Police listed Joseph Ellis* 37, col
ored. 1400 block of M street N.W..
as the driver of the truck. He is
being held under charges of reck
less driving. ;
Pro-Soviet UNRRA Directors
Seen Dispensing Agency Funds
This is the first of a series of stories on the operation of the
United Nations Relief and Rehabilitation Administration.
By William A. Millen.
Men in sympathy with Russian
aims have a directing hand in the
program of the United Nations Re
lief and Rehabilitation Adminis
tration, a program that has ma
terially benefited the Soviet and its
satellites, especially where industrial
rehabilitation is concerned.
This is the outstanding fact
brought out by a survey of UNRRA’s
five major divisions to discover who
determines how UNRRA’s $2,945,
627,000 checking account is used.
That is the amount of the organi
zation’s grand total budget, 75 per
cent—or $2,700,000,000—of which
was contributed by the United
States, as compared to $2,790,000
contributed by the Soviet. The re
mainder is contributed by United
Nations not invaded, each of which
nuts 1 per cent of its total income,
16.9 per cent being the contribution
of the United Kingdom, for example.
One of UNRRA’s major divisions,
industrial rehabilitation, is second
only to food in the amout of money
spent. Food accounts for $1,118,
000,000 of UNRRA’s total budget.
For industrial rehabilitation.
I
UNRRA is spending a grand total
ol $720,989,800. Next comes cloth
ing. textiles and footwear, with
$438,000,000. Then, agricultural re
habilitation accounts for a total
of $364,000,000, while medical and
sanitation supplies amount to $155.
000,000.
UNRRA i$ scheduled to end most
of its operations on December 31,
but the program in China will con- 1
tinue until the end of March, under
present plans.
The international headquarters
of UNRRA are at 1344 Connecticut
avenue N.W., where the Director
General P. H. La Guardia, former '
Mayor of New York City, has his •
offices. It is here that decisions1
are made as to how UNRRA funds
will be spent under general policy
laid down by the UNRRA councii,
which meets but once a year
Here is how UNRRA’s system
worked in the case of a request
for industrial rehabilitation assis- ,
tance:
Yugoslavia wanted part of an elec- ,
trie light bulb plant. Marshal Tito’s ]
(See UNRRA, Page A-14.) 1
Committee Told
Of $2,080,000
Profit on $600
Florida Shipbuilding
Figures Revealed;
Kaiser Defends Self
By J. A. O'Leary
A spokesman for the Genera]
Accounting Office told the Housa
Merchant Marine Committee to
day that one company, the St.
Johns River Shipbuilding Corp.
, Of Jacksonville, Fla . made profits
estimated at S2.080.C00 with an
original investment of $600
The opening session of the com
! mittee's hearings into the cost
| of wartime shipbuilding also was
. marked by a strong defense by Henry
; J Kaiser of his part in the war
i shipping program, in which he took
I.sharp issue with some of the state
| ments he said had been made.
| As evidence of the need for pro
; lection of taxpayers, the GAO esti
i mated that 19 wartime shipbuilders,
| including the St. Johns Corp., made
i profits of $356,000,000 on capital in
| vestment of $22,979,275.
j Ralph E. Casey, GAO representa
i tive, told the committee the figures
i indicated “the need for restoring
some of the safeguards, checks and
! controls which experience has dic
j tated are absolutely essential to the
'protection of taxpayers agamst ex
cessive and illegal expenditure of
public funds."
The committee is studying the
operations of the 19 companies who
used shipyards built by the Gov
emment.
I Mr. Casey summed up his testi
mony with this statement:
| "I dare say that at no time in the
i history of American business,
whether in wartime or in peacetime,
that so few men made so much <
money with so little risk—and all at
the expense of the taxpayers, not
only of this generation, but of gen
erations to come."
Both the committee counsel, Mar
, vin Coles and Mr. Casey, gave fig
ures on the St. Johns River Corp. in
their opening statements.
nb.SMi Per Cent Profit Seen.
Mr. Casey testified that the esti
mated profits of the St. Johns Corp.
represented '346.666 per cent of their
capital investment.” •
Turning next to the Kaiser group,
Mr. Casey said •'companies owned
or controlled by Henry J. Kaiser
and his associates, namely. Cali
fornia Shipbuilding Corp . Kaiser
Co , Inc . Kaiser Cargo. Inc.; Oregon
Shipbuilding Corp., Permanente
Metals Corp. and Walsh-Kaiser,
Inc., had a total capital investment
of $2,510,000 and made profits esti
mated at $192,237,284—in other
words, these companies with but
one-ninth of the total private capi
tal invested, realized more than half
of the total profits.”
‘‘It would seem.” Mr. Casey con
tinued. ‘‘that when profits from
Government contracts paid from
public funds soar to such astronomi
cal heights in proportion to invested
capital, some one—either Govern
ment representative or contractor
should come forward with a satis
factory explanation.”
Kaiser Claims Negligible Profit.
Mr. Kaiser, who was seated In
the crowded committee room as the
hearing began, issued a statement
and pamphlet, setting forth his side
of what his companies did to pro
vide ships and other war supplies.
Under the heading of profits, his
pamphlet set forth:
‘ The combined net profits of the
corporations operating the seven
Kaiser-managed shipyards during
wartime amounted to less than one
tenth of 1 per cent of dollar volume
including materials costs, after taxes
and after deducting losses of Kaiser
Co.. Inc., which built and operated
Fontana to produce wartime steel
for ships and shells.
‘ Kaiser enterprises performed over
$210,000,000 of construction for the
Government without fee or profit,
including $125,000,000 worth of ship
yards. Many other activities were
without fee or profit, including
seven months' management of the
Brewster Aeronautical Corp. for the
Navy.”
Start of War Recalled.
In laying the groundwork for the
investigation. Committee Counsel
Soles said that at the outbreak of
war existing shipyards were inade
quate and the Government was
forced to turn to the newly formed
:ompanies. 'most, with little capital
ind with little background or exper
ence in shipbuilding."
Mr. Coles said the production job
lone by these shipyards was excel
ent. but that it also was costly. He
;aid the Maritime Commision has
•ecently admitted that in parts of
he program there was "waste, ex
ravagance and high costs.”
Mr. Coles said that in the next
ew days the committee will receive
;vidence as to the profits and fees of
he various companies that oper
ited Government-owned shipyards,
rhere is no accurate formula or rule
o establish a dividing line between
•easonable and unreasonable profits,
dr. Cole told the committee, but
idded his belief that sufficient in
ormation would be presented to en
able the committee to decide whether
he amounts paid to the companies
were proper.
In defending concerns that went
nto war production, Mr. Kaiser said
n his statement that if invested
:apital were the only standard,
‘thousands of small manufacturer*
<See SHIPBUILDING. Page A-4.)
Mrs. Truman Returns
To Capital Tomorrow
By the Associated Press
INDEPENDENCE, Mo.. Sept. 23—
drs. Harry Truman left for Wash
ngton today after spending th*
summei at the family home.
The President's wife is expected to
■each the White House tomorrow
norning.
Her daughter. Miss Margaret Tru»
nan, and Mrs Truman's mother
drs. D. W. Wallace, will remain
tere until later in the fall.
£