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Evening star. [volume] (Washington, D.C.) 1854-1972, June 18, 1947, Image 1

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95^h YEAR. No. 57,664 Phone NA 5000. WASHINGTON, D. C„ WEDNESDAY, JUNE 18, 1947-FORTY-TWO PAGES. ***_ S? 5 CENTS
Greece to Let
U. S. Mission
Run Economy
Note of Thanks for
Aid Suggests Wide
American Control
ly th» Associated Press
The Greek government told
the United States today that the
American mission administering
the $300,000,000 assistance pro
gram to Greece should, virtually
run the economic life of the
In a note made public at the State
Department; the Greeks also gave
formal assurance that the money
put out by the United States to
boost recovery and block Com
munism in Greece “will be used in
conformance with the purposes for
which it may be made available.”
The extent to which the American
mission, headed by former Gov.
Dwight Griswold of Nebraska ac
tually will run economic affairs in
Greece was disclosed in a lengthy
list of duties which the Greeks
themselves said the Americans
should take over.
Mission Plan Outlined.
The note said the mission should
"participate in the development of
revenue and expenditure policies,
approve government expenditures
for activities which directly or in
directly involve the use of American
aid, take part in the planning of
the import proeram and approve the
use of foreign exchange.”
It added:
“The Greek government will also
wish the mission to assist in execu
tion of reconstruction projects, im
provement of public administration,
technical training of civil servants
and other personnel, continuation of
the health program, development of
exports programming and disposi
tion of government-purchased sup
plies. promotion of agricultural and
industrial recovery, and regulation
of wages and prices.”
Pledge Effort for Order.
On their part, the Greeks prom
ised to undertake a "great and con
tinuous” effort of their own In ad
dition to the American program, to
promote their country's recovery and
"the composing of internal differ
Three separate communications
were made public.
The notes covered formal notice
to the Greek government on May 28
that the $300,000,000 American pro
gram had been authorized by Con
gress, a note from the Greek eov
emment on June 15 expressing
thanks for the "benevolent interest
of a great and friendly nation in
the welfare of Greece,” and a note
of June 18 from the United States
accepting the Greek assurances.
The latter note stated that Am
bassador Lincoln MacVeagh has
been authorized to negotiate a for
mal assistance agreement with the
Greek government. That agreement
is supposed to be signed in Athens
today or tomorrow.
Assurances Noted.
Of the $400,000,000 Greek-Turkish
aid program, $300,000,000 is to be
spent for relief and militaiy aid to
The United States note dated to
day declared “this Government
notes with satisfaction the assur
ances of the Greek government that
American aid will be effectively util
ized in accordance with the pur
—V. UU U 1. U«4*,„
President Truman has defined
those purposes as being first to pro
mote Greek reconstruction and sec
ond to prevent the spread of Com
munism and totalitarian govern
ment into that country.
The Greeks said they recognized
that the “extensive aid of the
United States will not alone be suffi
cient to meet the large costs of re
* storing public order and recon
structing reproductive facilities over
a period of years.’*
Accepts Responsibility.
The Greek government accepted
responsibility for the task before
it and declared:
"This responsibility entails the
composing of internal differences,
the collection of more revenues, the
rebuilding of foreign trade, the con
servation of foreign exchange, the
reconstruction of public works, the
improvement of government admin
istration, assistance and guidance
to agriculture and industry, estab
lishment of protective labor meas
ures, encouragement of democratic
organizations among economic and
social groups, measures to control
inflation and assure equitable dis
tribution of supplies and services,
and the restraint of excesses and
extravagances on the part of any
segments of the population.”
Reds Gain Momentum
I- f_iL U_I_*
m juum rmiiuiuna
•y th» Auociatcd Prm
PEIPING. June 18.—Military ob
servers said today the Southern
Manchurian offensive by the Chi
nese Communists appeared to be
gathering momentum.
The independent newspaper Yi
Shih Pao reported the fall of Pen
shihhu, coal town of Mukden, and
said the Communists were pressing
toward Yingkow.
Another column was attacking
Halcheng, 112 miles southwest of
Mukden, and Anshan, coal area de
veloped by the Japanese 54 miles
southwest of Mukden.
All important points south of
Penshihhu on the Mukden-Antung
railroad were reported lost to the
Concentrating on the complete
isolation of Mukden, the Reds also
were slashing at Yinpan. about
20 miles west of the great Fuschun
coal mine on the Mukden-Kirin
Government counterattacks the
past two days at Szepingkai seemed
to have blunted the Red offensive
somewhat in that area. The Com
munists fought into Szepingkai yes
Russians Flatly Deny Any Part
In Hungarian Government Coup
Sviridov Tells U. S. General That Soviet
'Had Nothing Whatever' to Do With Change
ly th« Associated Press quesuonea oy uir winmiuiust-uoiu
BUDAPEST, June 18.—Soviet mated political-poli« and that he
. i ^ •* qiijA x.ij iu. expected to be thrown in j&il with*
Lt. Gen. V. P. Sviridov told the to short time.”
Allied Control Commission today Gen. Weems, head of the Ameri
that the Russians “had nothing ^ military mission here, said he
whatever to do with the recent did not bring up in the commission
change in the Hungarian gov- session the report that the new Pre
eminent.” mier, Lajos Dinnyes, had been named
Gen. Sviridov, questioned by Brig, to the post in direct orders of Gen.
Gen. George H. Weems. American Sviridov. He added that the dis
member of the commission, said the cussion was a calm one.
Russians “exercised no influence at During the session Gen. Sviridov
all in forming the Hungarian gov- once again refused to hand over to
>. the British and Americans the depo
Perenc Nagy was ousted as Pre- sitions which the Russians said they
mier of Hungary under Communist had taken from Bela Kovacs, former
pressure, and now is in the United secretary general of the Sipallhold
States in voluntary exile. ers Party. The Russians have said
Only today Imre Fold, Hungarian j**
manager of the Allied Officers’ Park and former Speaker of the House
Club, said he had been seized and1 (See HUNGARY, Page A-3.)
Drop in Traffic Deaths
Hailed by Truman at
Safety Conference
Work of Reducing Toll
Well Started, but by No
Means Done, He Says
(Picture on Page B-l.)
President Truman today open
ed his second highway safety
conference here by praising the
“sharp and gratifying decline” in
traffic fatalities, but said further
reduction must be made in the
“appalling” annual toll.
Noting in a speech at the Interior
Department auditorium that at least
6,500 lives were saved last year as
measured against "the black record”
of prewar 1941, when 40,000 fatalities
Occurred, Mr. Truman declared the
safety campaign is "well started,
but it is by no means done.”
"Last year 33.000 men. women
and children died as a result of
highway accidents, and well over
1.000.000 were injured,” he said.
"That is a tribute to inefficiency
this Nation cannot afford to pay.”
Mr. Truman urged improvements!
in the State licensing of drivers,!
and added that Congress will “notj
sit idly by in the face of a grievous j
national accident toll.”
Highway Program Praised.
In too many sections, Mr. Truman
declared, "the licensing laws are
nothing more than revenue measures
and their administration a travestry
on publie safety.”
Uniform license systems which
eliminate the "dangerously unfit and
the dangerously irresponsible from
our streets and highways,” he said,
are a basic weapon in the war on
The President reported that mo
tor vehicles traveled nearly 350 bil
linn milps Inst, vpnr in t.hn United
States, the greatest mileage in his
“In a very real sense, the increase
in postwar highway travel is Amer
ica,” he added.
Washington .was presented a
i plaque as winner of the grand award
i for cities in the National Traffic
I Safety Contest. The presentation
was made to Commissioner John
Russell Young by Represeptative
Davis, Democrat, of Tennessee, for
mer commissioner of public safety
in Memphis.
Second Plaque Awarded.
Representative Davis said Wash
ington, by cutting its traffic toll
from 76 in 1945 to 59 in 1946, proved j
that lives can be saved by eliminat
ing carelessness.
The city also was awarded a
plaque for being second in the na
tional pedestrian protection contest
among cities of over 500,000 popula
tion. This award also was pre
sented to Commissioner Young by
Lou E. Holland, chairman of the
American Automobile Association
National Traffic Safety Committee.
Connecticut won the State awards
for both .vehicular and pedestrian'
safety. Presentations were made to
Gov. James L. McConaughy.
Omaha won the grand prize
among cities of the national pedes
trian protection contest.
Maj. Gen. Philip B. Fleming, Fed
eral Works Administrator and con- j
ference chairman, opened the safety
meeting at 11 a.m. The 1.000 dele
(See SAFETY, Page A-4.)
Late Bulletins
Worsham Has 38 in PGA
DETROIT (A*). —Lew Wor
sham, National Open cham
pion, had rough going in the
opening qualifying: round of
the Professional Golfers’ Asso
uiauuii ciiainpiuiisnip tuuav
and finished the first nine in a
two-over-par 38. He took sixes
on two par-five holes and went
one over on another, but got
one birdie deuce. Johnny
Gaucas. 300-pounder from Co
hoes, N. Y., had a 34 for the
first nine. Jim Ferrier, San
Francisco, and Harold Sander
son, Summit, N. J., had 33s.
(Earlier Story on Page A-18.)
Held in Woman's Death
A coroner’s jury today held
Mrs. Irma Trego, 35, of 2235
Trout street S.E., for grand
jury action in the death of
her mother-in-law, Mrs. Annie
Trego, 74. The elder Mrs.
Trego died June 9 at Gallinger
Hospital where she was hos
i pitalized for a broken leg and
dislocated hip.
Flood Aid Bill Voted
The Senate took less than a
minute today to approve an
emergency $15,000,000 bill to
aid Midwestern and other
areas damaged by recent
floods. Approved last wreck by
the House, the measure now
goes to President Truman for
(Flood story on Page A-7.)
Walsh Sees War Peril
In Russia as Soon as
Reds Have Atom Bomb
Fixes Time as Three
To Four Years, Urges
Universal Training Now
By J. A. O'Leary
There will be danger of Rus
sia’s starting “a shooting war”
as soon as Prime Minister Stalin
gets the atomic bomb, “in three
or four years,” the Very Rev. Dr.
Edmund A. Walsh, vice president
of Georgetown University, told
the House Armed Services Com
mittee today.
While making a strong plea for
immediate passage of the adminis
tration’s universal training plan,
Father Walsh was asked by Rep
resentative Thomas, Republican, of
New Jersey, If Stalin’s postwar pat
tern is the same as Hitler’s prewar
“With one exception—to achieve
it (his objectives) without shooting,”
Dr. Walsh replied.
The Jesuit educator, who was a
member of President Truman’s Ad
visory Commission on Universal
Training, went on to explain that
the 8oviet pattern was to spread its
doctrine by infiltration, capture of
trade unions and by "boring from
Says Reds Have Data Now.
“If he fails by those methods, will
he resort to shooting, and how soon?”
asked Representative Thomas."
The witness hesitated to speculate
on the time element, and Mr.
Thomas repeated his question, leav
ing out the question of “how soon.”
noi unui ne is in possession oi
the atom bomb,” Dr. Walsh replied,
‘‘But I am prepared to go on record
before this committee that he is
already in possession of the informa
tion on how to produce it, and prob
ably will have it in three or four
He said the main element lacking
in Russia is the presence of scien
tists equal to those who developed
the bomb, but added that he had
been informed that the Russians
have been “kidnaping scientists!
from Germany” to supply that defi-;
Sees Delaying Tactics Reason,
“That is why Gromyko and the
others are stalling in the United1
Nations, because every stall is a
gain," Father Walsh added:
Earlier, Representative Bates, Re
publican, of Massachusetts, asked
Dr. Walsh how the situation today,
from the standpoint of this country's
security, compares with the period
from 1938 to 1940, which led this
country to adopt a selective training
“The only difference lies in the
fact that in 1939 and 1940 there
was already a shooting war,” Father
Walsh replied. “At present it is
not a shooting war, and, conse
quently, for the American people
the danger fades away, I regret to
Father Walsh said he had a
strong opinion of the ability of the
American people to meet a crisis,
but added, “It has to drop on their
heads as it did on Pearl Harbor.”
He said the “shooting” that is
done now “is done behind an iron
curtain" by arrests and by getting
out of the way those who might
offer opposition.
Father Walsh said he was amazed
during the hearings conducted by
the President's commission to have
respected American citizens say he
was a “traitor to the Government
of the United States and to your
He said when he asked these wit
nesses about the dangers that facej
the world today th^y suggested ef-:
forts should be made to “win them!
over by sweetness and light.”
“The idea that you can win over
a totalitarian government by sweet- j
ness and light is a delusion that:
time is gradually uprooting,” Father
Walsh continued.
Representative Gavin, Republican,
of Pennsylvania asked Dr. Walsh if
he thought Congress should take
immediate action on the universal
training program.
"Not only do I think so—I pray
for it every morning.” he replied.
“Time is running out. an'd the politi
cal bureau in Moscow that is creep
ing across Europe isn’t going to
adjourn for the summer.”
Iranian Army Cordon
Broken by Tribesmen
By tii* Associated Press
KHOI, Iran, June 18.—Counter
attacking Barzani tribesmen broke;
the western perimeter of an Iranian I
Army cordon last night and fought
their way into the Turkish-Iranian
border village of Bazargan, on the
.slopes of Mount Ararat.
.The army was silent concerning
casualties, but five trucks loaded
with wounded passed through Khoi
early today on the way to Tabriz
Progress Noted
In Settlement of
Shipping Tieup
Gains Made in East,
All Major Issues
Adjusted in West
•y the Associated Press
NEW YORK, June 18.—Prog
ress in efforts to settle the Amer
ican shipping tieup was reported
today on both East and West
Coasts as the union embargo on
sailings entered its third day.
Assistant Secretary of Labor John
W. Gibson, after a round-robin of
conferences "here that lasted into
the early morning hours, an
nounced that “considerable prog
ress” had been made.
A short time earlier, Nathan
Feinsinger, a trouble shooter for
the Labor Department, announced
in San Francisco that the National
Union of Marine Cooks and Stew
ards, CIO, tentatively had agreed
“on all major issues” with West
Coast shipowners.
“At this moment,” Mr. Feinsinger
Manila Businessmen
Welcome Tieup of
American Shipping
ly the AisocSotcd Pr«t
MANILA, June 18—Manila
businessmen welcome the pres
ent maritime tieup in the
United States.
Fred H. Stevens, president of
the American Chamber of
Commerce, said today the strike
would be beneficial for local
business if not continued too
The tieup came at a time
when the import market is
A survey of shipping firms
showed 16 ships due in Manila
sailed from American ports be
fore the maritime shutdown.
said, “it looks like the East and
West Coast problems are not neces
sarily related. It is hoped that any
agreement here will not be con
tingent on the East Coast.”
Call* Situation "In Hand."
Mr. Feinsinger said the West
Coast maritime situation was in
hand and that he had scheduled
single and joint meetings today
with employers, the cooks-stewards’
union and the American Com
munications Association. CIO, whose
president, Joseph P. Selly, was one
of those who met here with Mr.
Others with whom Mr. Gibson
laiKrU, III ecpeuauc wuiwciiw: iwmo
instead of Jointly as planned, were
Joseph Curran, president of the
National Maritime Union, CIO;
Frank J. Taylor, spokesman for 39
East and Gulf Coast shippers, and,
for a brief time, Samuel J. Hogan,
president of the Marine Engineers’
Beneficial Association, CIO.
Mr. Hogan said the engineers’ full
Negotiating Committee would meet
again with Mr. Gibson in advance
of another meeting of all parties
which the Labor Department offi
cial scheduled for noon today.
In his talks with the others, Mr.
Gibson said, "several approaches to
a solution of the dispute" had been
considered and "considerable prog
ress has been made.” He added
that “we are recessing until later
today to give them an opportunity
for further discussion of them.”
America's Sailing Delayed.
Refusal of the cooks and stew
ard* to sign sailing articles brought
the' first tieup of West Coast ships
yesterday, whereas East and Gulf
Coast ships manned by members of
the NMU had been immobilized
since Monday.
Two freighters were held at Van
cauver, Wash.; an Alaska-bound
passenger ship was held at Seattle
and two other liners were held at
San Francisco, and in the Los An
geles-Long Beach harbor the cooks
and stewards refused to work
aboard two'other ship®. Shore ac
tivities remained normal.
Today’s scheduled sailing of the
United States liner America, largest
of American liners, from New York
harbor was postponed until Friday
or later.
To prevent a tieup of freight cars
at px>rt cities, the American Associa
tion of Railroads’ late yesterday
placed an immediate embargo on
the movement of freight to any
port unless consigned to a ship not
affected by the dispute.
NMU. in respjonse to queries from
some of its union halls in Atlantic
(See MARITIME, Page A-4.)
Railroads Predict End
Of Boxcar Shortage
ly *ha Associated Press
The Association of American
Railroads said today the end of the
freight car shortage is in sight.
Warren C. Kendall, chairman of
the association's car service divi
sion, said the railroads have ' assur
ances” that materials “will shortly
be available for building as many
as 10.000 new cars per month.”
This would compare with an aver
age of 3.000 per month built for
the last 20 months, Mr. Kendall told
the House Commerce Committee.
He added the railroads already have
orders on the books for 100,000 new
cars and are ready to order 25,000
“With the acquisition of an ad
ditional supply of cars," Mr. Kendall
said, “we may look forward to the
end of the car shortage difficulties.”
Mr. Kendall opposed a bill the
committee is considering which
would give the Interstate Commerce
Commission authority over freight
car distribution in order to meet
complaints that there has been
discrimination against some areas
of the country, particularly the
Mr. Kendall denied any such dis
crimination. He said the present
system of supplying cars was “de
vised out of long experience” as the
best means for normal times.
Langer to Probe Hiring
Of Ex-Officers for High
War Department Jobs
Senator Charges Army
Has Taken Care' of Many
Without Examinations
By Joseph Young
Chairman Langer of the Sen
ate Civil Service Committee to
day charged that the Army has
“taken care’ of many of its ^op
ranking officers by placing them
in high-paid civil service War
Department jobs immediately
after their separation from mili
tary service.
Senator Langer announced his
group will investigate the entire
situation. He said a subcommittee,
headed by Senator Thye, Republi
can, of Minnesota will take charge
of the inquiry. *
“Many cases have been called to
my attention where many officers,
on their discharge from the Army,
were given civil service jobs at more
money in the War Department,”
Senator Langer declared.
No Examinations.
“These officers did not have to
take any examinations for the jobs.
They simply stepped out of uniform
into a good civilian JOD at oeuer
pay than they made in the Army.
“This committee is going to get
to the bottom of this situation and
find out why such shocking favor
itism and irregularities exist in the
War Department.”
The officers in question are not
Regular Army men but evidently
gained the favor of “higher-ups" in
the War Department and were fav
! ored with high-paying civil service
i jobs on their discharge from the
military service, Senator Langer
War Department officials con
cede that there have been some
, “conversions" from military to civil
service jobs, but they contend that
these have been only isolated cases.
Temporary as Yet.
Civil Service Commission officials
said the job appointments were of
the temporary variety, since exam
inations for permanent status in
these top-bracket jobs have not yet
been given. These former officers
evidently will have to take examina
tions to hold their Jobs, It was said.
Senator Langer and other mem
bers of his committee, including
Senator Baldwin, Republican, of
Connecticut pointed out that while
these former officers are stepping
into good jobs, other civilian em
ployes are being either dismissed or
The Senators also feel these for
mer officers have obtained a firm
foothold in some of the top civilian
jobs in the department and will
have an unfair advantage over their
competitors when permanent status
examinations finally are held. At
present there have been no dates
set for examinations for these posi
Unemployment Pay Bill Drawn.
All employes separated from Gov
ernment sendee through no fault of
„ 1*411
Senator Langer has had drawn.
This measure, now under study,
W'ould pay such workers unemploy
ment compensation weekly up to 10
weeks totaling either 25 per cent of
their basic salaries or $20 weekly,
whichever is greater. The States or
the Civil Service Commission would
pay this benefit, in turn being reim
bursed by Social Security. Existing
agencies would be used under the
The bill would date back to March
1, half way between the beginning
of the calendar year and the end of
the fiscal year. Dismissal wages
totaling two weeks for those fired
under economy measures, transpor
tation costs and $6 daily expense for
travel time also would be provided
under the measure for those return
ing home within 30 days after
German Reported Killed
Attacking Potato Train
By the Associated Press
BERLIN, June 1&.—Soviet-con
trolled newspapers reported today
that one person was killed When
railroad police fired on Germans
attacking a potato train near Wol
tersdorf, an eastern suburb of Ber
lin in the Russian zone. The re
ports said the plunderers charged
train guards with clubs and the
police fired warning shots before
shooting at the attackers.
1 gjmuB&Z!
Court-Martial Acquits
Marine of Brig Beatings
^ the Associated Press
ANNAPOLIS, June 18.—A Navy
court-martial today acquitted Ma
rine Corpl. Harold N. St. Clair, 21,
of Chattanooga, Tenn., of all
charges of maltreating prisoners
under his care at the North Severn
r He had been accused of striking
three men.
St. Clair, a veteran of Peleliu and
Okinawa, denied striking any pris
oner except “in authorized shake
down” in line with his guard duties.
Defense Counsel W. L. P. Burke
challenged at the close of the two
day trial the testimony of a prose
cution witness. Steward’s Mate 2/c
Edward H. Neal, jr„ who said St.
Clair beat him. Comdr. Burke de
clared Neal had “perjured himself.’’
Judge and Attorneys
May Go to Hospital for
Freeman Testimony
May-Garsson Fraud Trial
Continues at Slow Pace
Pending Court Ruling
A. J. May, nephew of former
Representative May, was re
called to the stand today and
testified that he did not re
member having told the grand
jury several months ago that
May had said ne owned stock
in the Cumberland Lumber Co.
in Kentucky which the Gov
ernment contends was a setup
by which Henry and Murray
Garsson bribed May in return
for wartime services. May has
denied owning any of the com
By Robert K. Walsh
Justice Henry A. Schweinhaut
said in District Court today that
he, the jury and attorneys in the
May-Garsson war fraud trial
may go to Casualty Hospital to
take testimony from Joseph F.
This move, he told the jury, would
depend on further reports by a
physician who told him this morn
ing that Freeman was “much im
proved” but probably would be in
the hospital for some time.
The trial continued at a slow pace.
Defense attorneys said they prac
tically had completed their case ex
cept for Freeman's testimony and
later today may make a formal mo
tion that the trial be “suspended”
for a few days until Freeman is able
to complete his testimony, either at
the hospital or in court.
Stricken With Heart Attack.
Freeman, the Washington agent
for the Garsson munitions combine
during the war, was stricken with
a heart attack yesterday while tes
tifying at the trial of former Rep
resentative Andrew J. May and
Henry and Murray Garsson on
charges of conspiracy to defraud the
United States.
Although Freeman was indicted
(See GARSSON, Page A-4.)
Curley Has 'Better Night/
But Condition Is Critical
By the Aseoeiated Press
COHASSET, Mass., June 18.—
Mayor James M. Curley of Boston
was reported still in a critical con
dition today, even though he had a
"better -night.”
Dr. Edward Schott gave newsmen
a bulletin on the 72-year-old polit
ical leader, even as Mayor Curley’s
attorneys moved to gain at least a
temporary stay of his 6 to 18 months’
jail sentence because of ill health.
Justice officials have said they
would not do anything to jeopardize
his life.
Mayor Curley, whose attorneys in
Washington were preparing affida
vits on his condition to be filed with
the court, was reported suffering
“terribly” by his physician.
Dr. Edward Schott announced just
before midnight last night that
Mayor Curley had a “very bad day"
and was suffering “terrific head
aches, a numbness in his feft arm
and impaired eyesight due to rising
blood pressure.”
A stay of sentence for at least
two weeks appeared assured as
Mayor Curley’s physician previously
said that it would be impossible.to
remove him from th*-tJohasset pri
vate hospital before that time.
Shortage of Gasoline,
Oil and Gas Forecast
In Next Few Months
Situation in This Area
Not to Be Critical
Industry Hopes
By James Y. Newton
The Nation faces an oil short
age-gasoline in August, fuel oils
natural and liquified gases ii
winter — because of unprece
dented high demand at homi
ana over the world and a hos
of other problems, most of then
resulting from the war.
This shortage will touch Wash
ington and the East in genera
rather lightly if everything goa
right. The Midwest, the area fron
the Appalachians to the Rockie:
and from the Ohio to Canada, wil
be comparatively hard hit.
Federal officials are concemec
about the situation because, if i
number of factors go wrong, lik<
the spread of the maritime strike t<
the tanker fleet—there will be tougl
days ahead for the country.
Little Concern in This Area.
The probability is that the short
ages will not be so severe as thos<
of wartime. In the East there maj
be some gasoline stations with “nc
gas” signs in August and next win
i*x me xxousexiuiuer may noi o<
able to get every oil delivery ai
the time he wants it. Barring bac
luck, there is little reason for con
cern hereabQuts.
The Army and Navy seem to b<
harder hit than civilians. The Navj
says it has been able to place orders
for only half of its petroleum prod
ucts requirements for the fiscal yea;
beginning July 1.
Just as in wartime, there is ai
immediate shortage of aviatioi
Primary reason for the trouble;
of the armed forces is that the oi
companies, in this time when de
mand exceeds supply, naturalli
would rather take care of civiliar
customers, who seem to promisi
more for the future.
Called Oil Industry Task.
Officials of the Interior Depart
ment's Oil and Gas Division are con
fldent Army and Navy needs will b<
taken care of. They say it is an oi
industry task and a big one. How
ever, they say the industry has yei
to fail to come through on a big job
Yesterday more than 50 top Gov
ernment officials met at the invita
tion of Secretary of Interior Krut
for a survey of the petroleum prod
ucts situation. Among those presen
were Secretary of State Marshall
John R. Steelman, assistant to th<
President; Undersecretary of Navi
Sullivan and Undersecretary of Wai
Edgar L. Warren, chief of th<
Labor Department's Conciliatior
Service, gave the group a summari
of the oil industry's labor problems
Among other things, he said it i;
unlikely that the maritime striki
will spread to tankers. Two oi
company officials, Edward Page o:
the Standard Oil Co. of New Jersej
and John Boatright of Standard oi
Indiana, supplied industry data.
Afterward, Secretary Krug tolc
reporters there "is no real basis foi
public hysteria" in the oil outlook
He said "a lot of misinformation hsu
(See OIL, Page A-4.>
House Votes 2-Year Freeze
On Security Tax Rate
By tha Associated Press
The House today passed Unani
mously a bill freezing the social se
curity payroll tax at present rate!
for two years.
If passed by the Senate and ac
cepted by President Truman, th<
measure will block an automatii
$2,000,000,000 annual increase in th<
levy cm January 1.
The legislation provides, however
for an increase in the tax in 195(
to from 1 per etnt to 1.5 per ceni
each against employes’ pay and em
ployers' payrolls. In 1957 the tax
would jump to 2 per cent against
Without the freeze the levy woulc
have increased January 1 to 2.5 pel
cent against employer and employe
The present 1 per oent tax collect*
about $1,500,000,000 annually for the
social security old age and survivors
insurance program.
Under the original social securitj
law enacted 10 years ago the tax
was scheduled to climb gradually tc
3 per cent against employe and
employer. But Congress has re
peatedly held the rate-*t 1 per cent
Congress to Get
Message Friday
On Labor Bill
White House Reports
Deluge of Mail,
Mostly for Veto
(House Vote Upholding Tax Cut
Veto on Page A-3.)
President Truman decided to-,
day to forgo his weekly n«ws
conference to work on a message
to Congress on the labor control
Mr. Truman will send a message
to Congress Friday, regardless of
whether he signs or vetoes the bill.
He told reporters as he was return
ing from Princeton last night that
he has not made up his mind.
Eben Ayers, assistant press sec
retary, said a heavy volume of mail
continued to pour into the Whit*
House concerning the legislation,
with "a heavy majority favoring a
veto.” Mr. Ayers said the volume
of communications about the meas
ure is by far the greatest ever re
ceived by Mr. Truman on any single
legislative issue or other controversy.
nrorridlnff a# V»1a Foronfl
Top Democratic and Republican
leaders agreed that if the President
vetoes the union-curbing bill the
House will not sustain him, as it did
yesterday in killing income tax re
ductions for this year. Most ob
servers at the Capitol believe the
Senate also would vote to override
a veto.
Mr. Ayers estimated that 157,000
to 158,000 letters, more than 500,000
cards and 25,000 telegrams had been
received through Monday. He said
one pile of letters in the White
House mailroom is “larger than a
cord of wood,” measuring 12 feet
long, 5 feet high and 4 feet wide.
He said around 10,000 letters a
day still are coming from individ
uals, groups and organizations. He
did not estimate the percentage fa
voring a veto other than to say the
- majority was “heavy.”
July 26 Set for Windup.
. Meanwhile, Republican leaders
! decided to shoot at July 26 as ad
' jouUiment day, but put off until
1 next week deciding on a list of re
maining bills they will try to put
through by that time. Also re
[ maining to be settled is whether
i the adjournment resolution will en
i able congressional leaders to call
: the two houses back in the fall, or
leave it up to the President, who
can always reconvene Congress dur
ing a recess.
Chairman Taft of the Senate
Republican Policy Committee agreed
i yesterday’s veto apparently elim
. Inated tax reduction fcr this ses
sion, but said that if trie President
should call a special session in the
fall for any reason, the Ohioan
would not be surprised to see tax
reduction revived then.
- Although Republicans hare been
chopping away at each 1948 appro
priation bill, trying to save enough
for both tax reduction and debt re
tirement, they have never reached a
final agreement on the February
resolution, which sought to fix an
over-all ceiling on Government
Snator Taft indicated the death of
the tax bill may dear the way for
such an agreement.
GOP Reply to Truman.
Senator Taft.said he intends to
propose now that a minimum of
. $1,500,000,000 go to debt payments,
’ plus all of any revenue surplus above
; the $39,000,000,000 in Government
, receipts estimated in the budget
, resolution. Depending on collec
1 tions, he said, this might total $3,
500,000,000 or more.
This new move was generally re
garded as the Republicans’ answer
to Mr. Truman's often-repeated con
• tention that debt reduction must
come before tax reduction.
High placed Republicans at the
Capitol were describing the death of
the tax bill yesterday as the signal
for the start of the 1948 campaign.
There were no indications, however,
that the political feuding would
affect foreign policy, except in one
phase, and that involves the future
of the State Department’s foreign
information service, including the
"Voice of America” broadcasts.
Funds for this activity after July 1
are still subject of controversy.
If the Chief Executive does veto
the labor bill he will have to count
l'on his former colleagues in the
j Senate to back him up.
Senator Hatch, Democrat, of
' i New Mexico, a close mena ox me
11 President, told a reporter he he.s
;i had no hints from the White
’ | House, but it is his personal view
’ I there will be a veto and "that It
S will be overridden.”
Ives Voices Doubt.
i Many other Senators of both
| political parties share that view.
But Senator Ives, Republican, of
; York, said:
“I don’t see how it’s at all cer
| (See LABOR, Page A-4.)
Vichy's Former Chief
Of Police Executed
By Associated Press
PARIS, June 18.—Max Knipping,
former chief of the Vichy govern
ment’s special security police dur
ing the German occupation, died
before a firing squad in Fort da
: Montrouge, near Paris, at dawn
: today.
Knipping was sentenced to death
by a special court last February
; after he was convicted of complicity
in the assassination of Georges
Mandel, prewar minister of the in
terior, in July, 1944.
Two young members of the Vichy
militia were executed at Montrouga
in November, 1944, for active par
ticipation in the Mandel slaying.
Another is serving a 20-year prison
France Ratifies Italian Pact
PARIS, June 18 UP).—'The Council
of the Republic, France’s upper
house of Parliament, unanimously
ratified the peace treaty with Italy
last night. Of the Big Four powers,
only Russia has yet to act on tha
Italian treaty. i

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