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Weather Forecast Cloudy, occasional rain this afternoon, high about 50. Rain tonight, low about 45. To morrow cloudy, rain likely. Temperatures today—High, 45, at 12:20 pm.; low, 39, at 3:20 a.m. yesterday—High, 42, at 1:55 pm.; low, 36, at 12:01 a.m. ^ Pull Report on Pnge A-1S. Lote New York Morkets, Page A-21. I ' _ I Guide for Readers Page. Amusements -- A-16 Comics_B-1S-19 Editorials -A-10 Editlal Articles, A-ll Finance_A-21 Los* and Found--A-S Page. Obituary „.A-12 Radio ^.—B-19 Society, Clubs—B-3 Sports _—A-18-19 Where to Go—B-ll Woman's Page.-B-12 An Associoted Press Newspaper 95th YEAR. No. 57,510 Phone NA. 5000. WASHINGTON, D. €., WEDNESDAY, JANUARY 15, 1947-FORTY-TWO PAGES. ★** City Horn* Delivery. Dally ana ounaay c / l 90c a Month. When 6 Sundays, *1.00 ** x u Rival Georgia Governors Set Up Separate State Military Forces; Both Seek Aid From Washington ' \ _ Fights Break Out As Arnall Rejects Talmadge Election •y th« Associated Press ATLANTA, Jan. 15. — Rival claimants to the governorship of Georgia established offices in the State Capitol today and each immediately set up his own mili tary department. The claimants yere Ellis Arnall, who has held the office for the last four years, and Herman Tal madge, who was named by the Legislature early today to the office which his late father, Eugene Tal madge, won in last November’s gen eral election. The elder Mr. Tal madge died last month. Mr. Arnall refused to heed the action of the Legislature and in a dramatic early morning encounter with Mr. Talmadge and in the face of a yelling mob of Talmadge sup porters refused to turn the office over to him. Fist fights broke out in the execu tive offices as the two men faced each other across Mr. Arnall’s desk, and after the heated exchange be tween the two men Talmadge sup porters threatened to come in and null Mr. Arnall from the office. Talks With Secretary of War. As his first act on arrival at his officfe today, Mr. Arnall named Col. R. W. Collins, commander of the State Guard, as adjutant general to succeed Brig. Gen. Marvin Griffin, who last night was sworn in by Mr. Talmadge as his adjutant general. Col. Griffin formerly erved under Mr. Arnall. Then Mr. Arnall communicated With Secretary of War Patterson by telephone and asked Federal recog nition of Col. Collins as a brigadier general and the State’s adjutant general. He refused to say what Secretary Patterson answered, but when he hung up, he turned to newsmen and said “This is the adju tant general,” pointing toward Col. Collins. (Asked about the Arnall call, the War Depatrment said he had communirated with Secretary Patterson on the question of whether the Secretary would recognize Col. Collins as the legal adjutant general. (Secretary Patterson’s reply was that there was no com pulsion for War Department recognition of a State adjutant general. He explained that a Governor is empowered to ap point any one of his choice. (Although some adjutants gen eral -are accredited by the Fed eral Government, such a proced ure usually takes time and is not required. The matter of any con troversy between two apparent appointees for the same position would be a matter for settlement in State courts, the War Depart ment said.) Mr. Arnall said Gen. Griffin had resigned and had accepted office under Mr. Talmadge, “this pre tender.” Blocks Communications. When Mr. Talmadge, who was in an office Gen. Griffith had set up for him just off the main Gover nor's reception room, heard of Mr. Arnall's call to the Secretary of War, he told his executive secretary, Benton Odom, to "block all com munications.” . , Then Mr. Talmade put in a tele phone call for Senator Russell in Washington. Mr Talmadge arrived at the Cap itol shortly after 9:30 a.m. and Mr. Arnall, who earlier had left under protection of National Guardsmen, arrived shortly thereafter. Shortly after his arrival Mr. Tal madge conferred with Gen. Griffin and then called newsmen into his office and said that he hoped to exercise the powers of the gover norship “without any violence,” but that the National Guard was ready • to function-in any emergency.” Says He Ordered Protection. "I don’t expect to have to use any force,” he said. “Although I understand that Gov. Arnall is now surrounded by cer tain units of the State Guard. The National Guard gave him protec tion last night at my request.” Proceeding to set up his adminis tration, Mr. Talmadge swore in and commissioned in rapid order Charles D. Redwine of Fayetteville as commissioner of revenue and Lt. J. Paul Smith, 38, of the State High way Patrol, as director of public safety. Mr. Redwine told newsmen “I’m going right down now and take (See GEORGIA, Page A-3.) ’ Truman to Meet Leaders Of Both Parties Tomorrow President Truman will hold his first bipartisan legislative confer ence to discuss the Capitol Hill pro gram at 10 a.m. tomorrow, the White House announced today. Republicans participating will be Senator Vandenberg of Michigan, president pro tern of the Senate; Senator White of Maine, majority leader; House Speaker Martin of Massachusetts, and Representative Halleck of Indiana, majority leader. Senator Barkley of Kentucky and Representative Rayburn of Texas, the minority leaders of Senate and House, will be the Democratic par ticipants. These conferences, to be held whenever occasion warrants, will re place the weekly conferences held at the White House when the Demo crats controlled Congress. Only the majority party participated in those matings. Eastland Suggests CIO 'Racket' In Pressing Portal Pay Suits Senate Hearing Recesses After Capehart And Wiley Offer Views on Legislation By th« Associated Press Senator Eastland, Democrat, of Mississippi, today raised the question of whether a CIO union used “racketeering” tactics in pressing portal-to-portal pay suits. The point came up when Senator Capehartf Republican, of Indiana, testifying before a Senate Judiciary Subcommittee on legislation to out law such suits, submitted a question naire which he said the CIO United Steel Workers Union circulated among its members. Senator Capehart said the ques tionnaire, dealing with portal pay, put this inquiry among others. “Do you normally take a shower before leaving company property?” “This indicates,” Senator Cape hart said, “that the unions are out on a fishing- expedition and that they don’t know whether they have a case or not.” Senator Eastland, member of the subcommittee asked: “Isn’t that more like racketeer ing?” Senator Capehart replied that “It might be called that.” He added: "It’s a high pressure sales campaign on a wholesale basis.” . The subcommittee recessed until tomorrow morning after hearing Senator Capehart and Senator Wiley, Republican, of Wisconsin, au thors of separate bills to outlaw or curb portal suits. Senator Wiley, pointing out that “This is the first subcommittee hearing held under auspices of the Republican Party since 1933,” told the crowded hearing room: “The very real threat of bank ISee PORTAL PAY, Page A-6.) Normal Service Due Monday in Cafeterias As Strike Is Ended Points of Arbitration Settled; Price Boost On Lunches Scheduled Their eight-day strike ended, Government cafeteria employes will begin returning to work to morrow, assuring normal service for 50 dining rooms by Monday. The stalemate ended last night when Government Services, Inc., and the United Restaurant and Cafeteria Workers, Local 471 (CIO), agreed to arbitrate their contract controversy. Nearly 130,000 Federal employes who eat in the cafeterias were served again today by the super visory crew that kept some of the places open during the strike. Get ting the closed cafeterias back in operation will require a series of gradual steps the rest of the week. Many Return Tomorrow. Tomorrow 50 per cent of the hourly workers normally employed in the 26 cafeterias now open will return to their jobs behind the steam tables and in the kitchens. But the fare still will be the “emergency” rations served during the strike. On Friday the full forces of these cafeterias will be on the job serving complete meals, including breakfasts where they are normally served. Also on Friday the units closed dur ing the strike will reopen, with 50 per cent of the personnel on hand. Monday, when restocking is com pleted, GSI will present its cus tomary menus at all cafeterias. But customers will be paying slightly more for meals—the same prices introduced briefly this month when it was believed the union was ac cepting an 8-cent wage increase. Points Are Listed. It was the union’s rejection of these terms that precipitated the strike. Under relentless hammering by Federal conciliators, the dis putants decided to call it off last night and submit these points in arbitration: (1) 20 cents an hour across-the board wage increase; (2) 15 days annual leave after 18 months’ serv ice; (3) 15 days sick leave; (4) com pany-paid hospitalization plan; (5) arbitration of suspensions and dis charges; (6) 3 through 6 hours daily to constitute part-time employment with a 10-cent differential; (7) re duction to two months of proba tionary period for hiring, with 10 cent differential during that period; (8* a retroactive date for these issues not to go back beyond January 14. If, after five days, the parties have not agreed on an arbitrator, he will be appointed by the Secretary of Labor. In either case, his decision shall be final. Bargaining to Continue. Collective bargaining will con tinue for 60 days on three other issues: Layoffs on the basis of seniority and minimum 8-hour work days, as requested by the union, and the right to fire for inefficiency, as requested by the company. Commissioner Peter J. Manno of Philadelphia, a conciliator in the (See CAFETERIAS, Page A-6.) London Strike Grows l Walk Out in Sympathy Total of 40,000 Now Have Quit Work in Protest on Troops Moving Food By tha Associated Press LONDON, Jan. 15.—More than 2,000 Thames lightermen and thousands of stevedores and dockers quit work today in sym pathy walkouts, swelling to 40, 000 or more the number of per sons idle in London’s mushroom ing 10-day-old transport strike. The new work stoppages, protest ing the use of troops to replace striking truck drivers for delivery of food, came as negotiators hoped for an early settlement of the truck dis pute, crux of an “unofficial” strike which some Labor partisans feared might upset the Labor government. Leaders Shouted Down. Union leaders appealed to the dock workers at a meeting this morning to return to their job6, but their speeches, citing the striking truckers’ advice against further sympathy walkouts, were shouted down. Strike Leader J. E. Evans, In a message to the 30,000 truck strikers, said he hoped “some concrete pro posals” would develop in union, ne gotiations today and the Daily Her ald, labor organ, said in a bold head line: “Strike Call-Off Likely To day.” At least 20,000 other union mem bers—protesting use of troops to de liver food supplies to London shops —prepared to join the walkout if the new conferences fail. The truck drivers want a 44-hour work week instead of 48 hours, two-week paid vacations and overtime pay instead of time off. Hope Placed In New Council. The public, which already has missed most of one week’s meat ra tion because of the strike, placed its hope for settlement in a new government-sponsored Joint Indus trial Council of transport workers and employers empowered to recon sider the strikers’ demands. The employers insist, however, that the strike end before the new council takes action. The council was established yes terday by obviously worried Labor government officials. One Labor member of Parliament, Tom O’Brien, declared at a union meet (See LONDON. Page A-3.) Gardner Takes Oath As Envoy fo Britain O. Max Gardner was sworn in to day as Ambassador to Great Britain. Chief Justice Vinson administered the oath to Mr. Gardner in a brief ceremony in the office of retiring Secretary of State Byrnes. Mr. Byrnes and a group of friends and political associates of Mr. Gardner witnessed the ceremony. Mr. Gardner was Undersecretary of the Treasury when he was ap pointed to the London diplomatic post. He will sail for London February 6 aboard the liner America. Ships Break Through Ice Pack, Covering 600 Miles in 14 Days By Thomas R. Henry Star Staff Correspondent WITH THE NAVY ANTARCTIC EXPEDITION, Jan. 15.—The four ship Navy flotilla yesterday com pleted a 14-day crash through more than 600 miles of the Antarctic ice pack, setting a world record in ice navigation by a long margin. More than half the way the ice field was almost unbroken, and at least 3 feet thick. The flotilla broke through one ice rib estimated to be 30 feet thick and at least 100 feet wide'. For 400 miles the trackless expanse of ice was broken only by occasional lakes of open water. Only below 75 degrees south latitude did the ice decrease so the ships could sail most of the time in water. Although the average speed was 50 miles a day, there were days of no progress and others when ships were swept back ward by ice drift as much as 6 miles. This, with one possible exception, was the largest ice pack ever known in Antarctic summer. Sir James Ross in 1842 reported ice covering 800 miles from north to south. If the record is accurate, says Rear Admiral Richard H. Cruzen, expedition commander, the ice must have been very thin, as after two futile attempts Sir James’ wooden ship Erebus went through in four days. Probably he went 800 miles in all three efforts to escape. The heavy pack this yea*, almost twice the size expected, is believed due to the lack of storms to break up the drifting ice The open water finally reached had a nearly ripple less surface. Meeting the heavy ice “pack was fortunate for the Navy experiment, findings from which are expected to add greatly to the undevelopell sci ence of ice navigation. No long passage through ice ever (See HENRY, Page A-6.) Senate Hearing Set Jan. 23 on All Labor Bills March 1 Fixed as Goal For Completing Work On New Legislation By J. A. O'Leary The Senate Labor Committee decided today to hold one set of hearings, starting January 23, on all bills intended to reduce industrial strife. The committee decided on this course in preference to taking up one bill or one subject at a time, which would have resulted in re peated appearances of the same wit nesses. Chairman Taft said March 1 has been fixed as a goal for completing hearings, which means no labor leg islation will be taken up in the Senate before that date, except pos sibly some solution of the portal to-portal pay issue. The problems growing out ol nu merous lawsuits throughout the country based on the Supreme Court portal-to-portal decision, is in the hands of the Senate Judiciary Committee, which began separate hearings today. The Labor Committee’s plan to hold omnibus hearings changes somewhat earlier indications that the Senatq might get a revised draft of the old Case bill before other more controversial labor measures are taken up. No Decision on Number of Bills. Senator Taft emphasized, how ever, that the committee did not decide today whether there will be one or several labor bills when the hearings are over. It voted only to take the testimony at one time on all subjects. The new Case bill is sponsored by Senators Taft, Ball of Minnesota and Smith of New Jersey, all Re publicans. It follows the general outline of the bill President Truman vetoed last year, setting up a Media tion Board, providing a cooling off period, outlawing jurisdictional strikes, requiring separate unions for foremen, and annual financial statements from unions. There is a separate Ball bill to outlaw the closetLshop and a resolu tion by Senator Murray, Democrat, of Montana calling for a commis sion to study all labor changes be fore specific remedies are drafted, which is in line with a White House recommendation. Senator Taft said the January 23 hearings will go into each of these measures, and all other bills “dealing with the organization and responsibility of labor unions,” with labor courts and compulsory arbi tration, with mediation and con ciliation, the closed shop and Na tion-wide collective bargaining. Testimony will be taken at the same time on change's in the Na tional Labor Relations Act. Schwellenbach to Be Witness. The first witnesses will include Secretary of Labor Schwellenbach and other Government officials. In accordance with the Reorgan ization Act, witnesses will be asked to state the particular issues they wash to discuss, which side they are on, and to file brief summaries of their views. These steps are de signed to speed up the heatings. Secretary Schwellenbach yester day provided a preview—but only in part—of the tastimonw he will give when the Senate and House Labor Committees ask for his opin ions. At a news conference Mr. Schwel lenbach said: He will co-operate with Congress in any efforts to minimize labor strife. He won’t go up to Capitol Hill just to “say no to everything.” But he most positively will oppose (See LABOR, Page A-6.) British Jail American Who Defied Entry Ban By the Associated Press LONDON, Jan. 15.—Johan J. Smartenko, vice president of the American League for a Free Pales tine, was arrested and taken to jail as an unwanted visitor to Britain shortly after he flew from Paris to Croydon Airport in a chartered plane today. Immigration authorities met him at the airport. The Russian-born American citi zen was accompanied by two Ameri can newspapermen, who satisfied authorities that their papers were in order. However, the pilot of the private Messerschmitt plane which took Mr. Smertenko across the Channel was detained. Mr. Smertenko, accused by the British of making derogatory state ments concerning the British ad ministration in Palestine, said his words had been ‘‘grossly distorted.” As he left the plane, he was ap proached by immigration officials and officers of Scotland Yard’s Crim inal Investigation Division. No one else was permitted near him. Air Ministry police guarded all doors to the immigration department. The Free Palestine office in Paris said Mr. Smertenko had chosen two American newspapermen to ac company him on a “pool” basis. The correspondents were identified t as William Boyle of the United Press and David Perlman of the European edition of the New York Herald Tribune. U. S. Insists on Consultation On Any Change for Spitsbergen No Word Received of Defense Agreement; McDermott Says The United States today as serted its right to be consulted before any formal move is made by Russia and Norway to change the status of the Spitsbergen Islands. This Government has no informa tion so far concerning any formal Russian-Norwegian agreement for joint defense of the strategic island group in the North Atlantic, Michael J. McDermott, State Department press officer, said. Mr. McDermott told reporters that the United States has been informed that Norway and the Soviet govern ment are discussing the possibility of a levision of the 1920 treaty which gave Norway jurisdiction over the islands and banned any military installations. “As we are a party to that treaty,” Mr. McDermott said, “we have no doubt at all that we will be con sulted in case Norway and the Soviet Union reach agreement that revi sion of the treaty is desirable;.” Mr. McDermott's remarks were in reply to questions about the United States position in view of a Moscow radio broadcast last night asserting that Russia and Norway reached an “understanding” in 1945 “about the necessity of joint defense of the Spitzbergen Islands.” He said that, while this Govern ment has been kept informed of de velopments in the Soviet-Norwegian discussions, it has no information concerning any “formal agreement” regarding "the necessity for joint ~See~AGREEMENTS,Tage A-5.) Britain Challenges Soviet Claim to One of Islands By the Associated Press LONDON. Jan. 15.—A Foreign Office spokesman today chal lenged a new Soviet claim to the Arctic island of Medvezhi, in the strategic Spitsbergen archipela go, and said Russia remained bound by the 1920 treaty demili tarizing the islands. The Soviet news agency Tass, quoting “authoritative Soviet cir cles,” said Medvezhi “actually was a Russian island” and announced that Russia and Norway had agreed on “the necessity of joint defense” in the area, “We are unaware that the Soviet Union have any valid claim to any island in that region,” the spokes man said. “That is Norwegian ter ritory.” , Soviet View Rejected. Tass said the 1920 treaty could not remain valid because its signatories included nations which fought against the Allies in World War II. These were Italy and Japan. The Foreign Office official said Brieain could not accept that view. He remarked that many existing treaties bore the signatures of ex enemy states, including the Mon treux convention and The Hague Convention, and said “it has never hitherto been suggested that they be renegotiated because of this fact.” Britain has no knoweldge of any Soviet-Norwegian agreement on the necessity of joint defense, the (See SPITSBERGEN, Page A-6.) Australia Proposes That Council Create Commission on Arms Speed in Consideration of Atomic Energy Controls Also Urged by Makin DEPUTIES CONFRONTED by bor der issues in starting treaty work. Page A-2 By the Associated Press LAKE SUCCESS, N. Y„ Jan. 15. —Australia proposed today that the United Nations Security Council create a disarmament commission and rush considera tion of atomic energy control. Norman J. O. Makin, chairman of the Council and Australian Ambas sador to the United States, submit ted a resolution providing: 1. For a disarmament commission to work out arms limitation- pro posals. 2. For the Atomic Energy Com mission to continue its work on atomic controls. 3. For the Military Staff Commit tee to draft proposals for the United Nations international police force to preserve world order. 4. For the Disarmament Com mission, the Atomic Energy Com mission and the Military Staff Com mittee to submit reports before April 30. 5. For the Security Council to ex pedite consideration of the "first re port of the Atomio Energy Commis sion, which contains the American plan for atomic control. Chinese Supports U. S. Before Mr. Makin introduced his resolution Dr. Quo Tai-chi of China supported the American position that atomic energy should be given top priority in the arms limitation study. , „ China also supported a Russian proposal for a commission to draw up plans for arms regulation. The United States, Russia, France and Australia now have resolutions before the Council suggesting vary ing ways of approach to the arms problem. Warren R. Austin took his seat ~ (See UTNTPage A-5.) French Papers Resume PARIS, Jan. 15 (/P).—French-lan guage newspapers in Paris resumed full-scale publication today for the first time since January 9 under the terms of an early morning agreement by government, man agement and labor representatives to submit a pressroom wage dis pute to arbitration. Permanent Yardstick For Federal Payment To District Demanded O'Mahoney Again Offers Bill Providing Formula Based on Land Area Senator O’Mahoney, Democrat, of Wyoming today renewed his fight for the permanent fixing of a more equitable Federal pay ment toward the expenses of the National Capital. He reintroduced for himself and Senator Overton, Democrat, of Louisiana, a bill which would base the Federal share on the ratio which the land area used for Fed eral purposes bears to the total land area of the city. A Senate report last year esti mated that, under this formula, the Federal obligation toward the ex penses of the city would have been 18.66 per cent. Would Provide $ll,uuu,uuu. If the formula were in effect now, District officials say it would make the Federal payment $11,000,000 in stead of the $8,000,000 lump sum granted by the last Congress. Senator O’Mahoney, who was chairman of the Senate Subcom mittee on District Appropriations last year, took a leading part in the successful effort to raise the Federal payment from $6,000,000 to $8,000,000 last year. Even with this increase, however, the issue remained on a temporary, year-to year basis. A permanent solution of the issue is considered of special importance at present in view of the large new budget which threatens increased local taxes. Senators O’Mahoney and Overton believe the problem should be set tled permanently by adopting some yardstick which Congress could ap ply each year without difficulty in determining the Federal obligation. This bill provides such a yard stick, because the FflHeral payment would vary only as the United States increased or cut down its area of tax exempt land. Such changes could be ascertained quickly and with mathematical accuracy. Referred to Committee. Senator Overton first proposed the land area formula when he had charge of District appropriations, and Senator O’Mahoney continued to advocate it. "I am reintroducing the bill,” Senator O'Mahoney said, "in the (See O’MAHONEY, Page A-6.) Threat of Neon Signs 1 Facing White House Seen in Zoning Plan Special Meeting Held On Commercial Rating For Lower 16th Street The possibility of blinking neon signs, barber poles and liquor stores facing the White House from across Lafayette Square was brought up at a hearing before the District Zon ing Commission today. The commission held a special meeting on a petition to reclassify Sixteenth street from H street N.W. to Scott Circle from residential to commercial. If such a reclassification were granted, it would permit commercial establishments, with their bright lights, to line Sixteenth street di rectly across Lafayette Square from the north entrance to the White House. Sentiment Divided. Sentiment of the witnesses at the meeting appeared to be divided three ways. There were those who op posed any change in the present zoning, those who wanted it, and those who favored a middle ground, or limited commercial rezoning to permit certain types of “semimonu mental” office buildings and enter prises, but would bar neon signs, barber poles and liquor stores. Ringgold Hart, attorney, told the Commission the petition for the change, signed by many of the property owners affected, originated when his client, the American Fed eration of Labor, found it could not build a new office building on lower Sixteenth street under present conditions. He was supported by a majority of the three-man Zoning Advisory Council, which investigates each proposed zoning change for the commission; the Citizens’ Zoning Ad visory Council, and several property owners, including former Senator Henry F. Ashurst of Arizona. The attack on the plan was led by John Nolen, jr„ of the National Capital Park and Planning Com mission staff, in a minority dissent from the opinion of the Zoning Advisory Council. Nolen Reads Statement. Residential zoning of Sixteenth street, he declared in a statement read to the commission, was based first on a desire “to preserve it as a dignified monumental frontal approach to the White House along which would be fine hotels, apart ments, embassies, churches and appropriate institutions.’’ Secondly, he continued, it was designed as a separation barrier between the main downtown com mercial area to the east and the special Connecticut avenue busi ness development to the west. Merger of these two sections, he said, would result in business and commercial shifts that would de crease central business .property values more than it would increase Sixteenth street values. James L. Houghteling, speaking for St. John’s Protestant Episcopal Church, Sixteenth and H streets N.W., also attacked the plan as a traffic hazard and as a blow to the historic setting of the church —known as the Church of the Presidents. Mr. Hart told the commission he (See ZONING, Page A-6.) I Choking Baby Is Saved By Exhaling in Mouth - Sy the Associated Press NEW YORK, Jan. 15.—Andrew J. Montero, clutching the wriggling body of his 7-month-old son in his arms, dashed into a Brooklyn police station last night. “My son can’t breathe, he’s chok ing to death,” he shouted tp Sergt. George Allen, on duty at the switch board. Sergt. Allen, a veteran of 14 years on police emergency squad detail, grabbed the infant, whose throat and nasal passages were blocked with phlegm, and began exhaling into his mouth. For 15 minutes Sergt. Allen leaned over the child and breathed into his gasping mouth. Then the child’s purple face changed back to normal. He was brought to a hospital where physi cians credited Sergt. Allen with saving his life. $144,000 Fraud In Surplus Laid To WAA Official Former Convict Also Arrested in Textiles Purchase Arrest of a War Assets Admin istration official and an ex-con vict, both of Washington, on charges of fraud costing the Government $144,000 was an nounced by the FBI today. FBI Director J. Edgar Hoover identified the men as Louis V, Dionne, 38, a WAA expediter, of 1918 N street N.W., and George A. Gormley, 50, a former convict, liv ing at 3802 Fulton street N.W. Mr. Hoover said the two men evolved a plan to obtain textiles, consisting of woolen goods, through alteration of sales documents at a WAA site sale at the Washington Quartermaster Depot in Alexandria. Textiles Recovered. The FBI chief said that $144,000 worth of the textiles were recovered from a New York storage firm to which they were traced from a trucking firm terminal. The two men were reported to have concocted a scheme at a Wash ington hotel bar last November whereby Gormley was assured de livery of more high-grade woolen goods from the Government ware house than he had purchased and paid for at the sale at Alexandria, the FBI said. Mr. Hoover said Dionne’s “admit ted participation in the scheme netted him $7,000, paid by Gormley through an intermediary on De cember 11, 194G. Reviewing results of the investi gation, Mr. Hoover said: “The plan called for Dionne to ‘raise’ or increase the yardage figures on the shipping order when it crossed his desk in routine fash ion. Purchase Described. “On December 6, 1946, Gormley purchased $24,000 worth of the goods, described as 10,000 yards of 36-ounce wool cloth suitable for clothing material, from a WAA site salesman. He tendered In full pay ment therefor his personal check drawn on a Washington bank. The material was originally purchased by the Government for $3.60 per yard.” According to Mr. Hoover the sales document was altered during rou tine processing to show Gormley’s purchase as 40,000 yards and the amount paid to the Government as $96,000. The altered document was forwarded to the warehouse, and on December 10, 40,000 yards of textiles consigned to Gormley were trucked from the warehouse to a Washing ton truck terminal, the FBI director continued. “The goods were then hauled to New York City and stored, con signed to another owner,” Mr. Hoover added. “The new owner had come to Washington on December 10, and through negotiations with Gormley had agreed on a purchase price of $53,000 for the lot. Two Checks Presented. “Two checks in the amounts of $25,000 and $28,000 were tendered Gormley in payment. Through in vestigation, the FBI located the fraudulently obtained goods ship ment in the above storage company and it was seized on January 13.” Meanwhile, Gormley’s check to the Treasurer of the United States had been returned by the bank marked “insufficient funds” and Gormley was so advised, Mr. Hoover continued. “Upon receipts of the two checks aggregating $53,000, Gormley re ceived cash for the larger and pur chased a cashier’s check payable to the Government for $24,000 with the other check,” the statement said. “This he sent to the Government to cover his original check on which collection had been refused.” Arraigned this morning before United States Commissioner Need ham C. Turnage, Gormley was re leased in $3,000 bond. The FBI said Dionne was Jailed in Alexandria in default of $5,000 bond after a hearing before United States Commissioner Stanley King. Both are specifically charged with causing a forged document to be presented to the United States Gov ernment. Gormley, arrested at his home yesterday, was sentenced to serve eight years in connection with the $5,000 swindle of a Washington fln (See FRAUD, Page A-6.) Big Profits in Sales To Treasury Charged By the Associated Press Senator Ferguson, Republican, of Michigan declared today that "inor dinate profits” were made on sales of small hardware items to the Treas ury procurement branch for lease lend during the war. Senator Ferguson told the Senat® that the War Investigating Com mittee has turned up instance* “where contractors having no man ufacturing facilities were paid price* 50 to 1,000 per eent higher than the manufacturer’s price.” He spoke in favor of extending th® life of the special committee. “In the cases examined by the committee, doing business in this fashion has cost the Government $2,000,000 over the manufacturers’ actual price,” he said. i Senator Thomas, Democrat, of1 Utah, who was a member of the joint committee which drafted the congressional reorganization law, spoke at length against continuing the committee. “One of the reasons Congress loses control of itself Is that it di vides itself tip into so many com mittees,” he said. “An investigating committee is a never-ending affair.” Republicans, meanwhile, claimed the first test vote of the new Con gress will give them a victory in th® continuance of the War Investigat ing Committee.