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Evening star. [volume] (Washington, D.C.) 1854-1972, August 04, 1947, Image 1

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--AR‘ Xo> 57’711 Fhone NA- 500°-_WASHINGTON, D. C., MONDAY, AUGUST 4, 1947-THIRTY-FOUR PAGES. ★★★_ 5 CENTS
$159 Hughes Expense Voucher
For 'Roosevelt Wedding Party'
Under Attack in Senate Probe
Ferguson Says Other
Plane Firms Had No
Such High Costs
BULLETIN
A bitter dispute broke out
as the Senate War Investigat
ing Subcommittee adjourned
for a noon recess today with
Senator Pepper, Democrat, of
Florida charging, “Elliott
Roosevelt is the only one being
investigated.” In the exchange
were. Senator Pepper, Chair
man Brewster of the full Sen
ate committee and Chairman
Ferguson of the subcommittee.
The Senate War Investigating
Subcommittee inquiring into
Howard Hughes’ Airplane con
tracts today turned to an ex
pense account voucher of the
Hughes Aircraft Co. for $159.41,
labeled “Col. E. Roosevelt wed
ding party.”
This development came as Chair
man Ferguson of the subcommittee
investigating the $40,000,000 Hughes’
wartime contracts said the books of
other aircraft companies show no
such “glaring examples” of wartime
entertainment expenditures as those
of Howard Hughes.
Amww V, VU1U1 TV. Cl ,
Hughes’ publicity man, admitted that
he sometimes labelled expense ac
counts as having been for the enter
tainment of Elliott Roosevelt mere
ly because his name was the most
important of the 25 or 30 persons
being'entertained at the time.
Mr. Meyer also told from the wit
ness stand that he had visited the
late President and Mrs. Roosevelt at
Hyde Park at about election time in
1944.
The wedding party voucher was
the basis of inquiry as Elliott Roose
velt sat in the background waiting
to testify and to give his explana
tion of expense accounts totaling
$5,083 between 1943 and 1945. These
expenses on which Mr. Meyer has
been questioned contain frequent
mentions of Mr. Roosevelt and Miss
Faye Enibrson, his actress wife.
Roosevelt to Testify on Contract.
Mr. Roosevelt is expected to give
his tsory of how and why he recom
mended that the Government buy
Mr. Hughes’ photo-reconnaissance
plane after the Army Air Forces had
rejected it.
The ”001. E. Roosevelt wedding
party” voucher was paid by check to
Paul Franklin, a test pilot, in De
cember, 1944, according to testimony.
Roy Sherwood, assistant control
ler of the Hughes Aircraft Co., told
Senator Ferguson the payment indi
cated it could have been for flying
the wedding party somewhere.
Mr. Meyer testified, however, that
Mr. Roosevelt was flown to the
Grand Cayon for his marriage to
Miss Emerson by Jack Frye, former
president of Trans-World Airlines,
and that Mr. Fyre paid the expenses.
Meyer May Have Made Flight.
‘‘This pilot may have flown me
there,” Mr. Meyer added, referring
to the $159.41 payment made by the
Hughes Co. to Mr. Franklin.
While Senators and witnesses
from the Hughes Co. argued back
and forth about his wedding, Mr.
Roosevelt sat a short distance away,
waiting for the chance to tell his
side of the story.
He was on hand promptly at 10
a.m., but Senator Ferguson decided
to complete the quizzing of Mr.
Meyer on all of his expense vouchers
first.
Mr. Roosevelt’s appearance served
to pack the Senate caucus room, and
left an overflow crowd trying to
get in.
The detailed voucher for Mr.
Franklin was itemized as $100 for
four days’ flying time and $59.41 for
other expenses.
"Could that have been a bill for
(See PROBE, Page A-3.)
Mass of Dead Fish Moves
Up Florida's Gulf Coast
Sy the Associated Pres*
CLEARWATER, Fla.. Aug. 4.—A
great mass of dead fish—killed by a
mysterious plague—was moving
slowly northward along Florida's
Gulf Coast today, and a health of
ficer advised' vacationists to post
pone their vacations to the beaches
in this area for about 10 days.
The mass with its accompanying
amber colored waters was centered
off Clearwater yesterday.' moving
about 5 miles every 24 hours.
Dr. Franklin E. Campbell. Pinellas
County health director, said no fish
had been washed ashore here. How
ever, further south along the Indian
Rocks and Redington Beach areas,
county workers and volunteers
buried piles of fish in a trench two
and a half miles long.
The fish mass has been estimated
to be 60 miles long and 25 miles
wide. So many big fish are in the
mass, sanitarians in Dr. Campbell's
office said, it gives the appearance
“that one could walk across it like
.logs.” *
Italy Sets Heat Record
ROME, Aug. 4 (/P).—Italy is having
her hottest weather since 1905
Rome's 103.1 yesterday was onlj
, nine-tenths of a degree short of the
104 record set 42 years ago.
Late Bulletin
*
President Returns
President Truman returned
to the White House early this
afternoon after a week end
near; Thurmont, Md. On the
return trip he stopped in Silver
Spring to meet the train bring
ing R^rs. Truman from Mis
souri.
(Earlier Story on Page A-12.)
\
More British Soldiers to Hang,
Irgun Warns; English Riots Flare
executed Sergeants
Guilty of Espionage,
Spokesman Asserts
By-'the Associated Press
PARIS, Aug. 4.—More British
soldiers will be executed by Irgun
Zvai Leumi as soon as they are
captured, a leader of the Jewish
underground organization de
clared today in a news confer
ence.
He said Sergts. Clifford Martin
and Mervyn Paice, found hanged
in Palestine last Thursday, were
"known to be guilty of anti-espion
age in civilian dress.”
He would not enumerate others
who were on the death list of Irgun.
When asked about Gen. Sir Evelyn
Barker, former British commander
in Palestine, the Irgun leader said,
“He has an account to be settled.”
British Rights Unrecognized.
“We don’t recognize the right of
the British government in Pales
tine,” the Irgun leader said. “It is
our country and we are vowed to
bring about its liberation.” He said
the British white paper published
in 1939 was tantamount to abolish
ing the British mandate over Pales
tine.
The Ireun leader said the nr cr a n _
ization would try to avoid an open
clash with Hagana, another Jewish
organization, but added, “We will
fight on two fronts if necessary."
He said Hagana had become the
police dog of the British "invader,”
adding:
"The Hagana is today what the
Vichy government was yesterday—
collaborators."
Denies Reprisal Was Aim.
He said the hanging of Sergts.
Paice and Martin was in "no way to
be construed as reprisal. The two
Britons were hung for their own
sins.
“However.” he added, "the British
have started systematically to hang
their Hebrew prisoners and are using
the gallows as a method of warfare.
The Irgun has decided that we are
going to employ this method. It is
therefore to be expected that from
now on various Britons, will be ar
rested, court-martialed, and if found
guilty, hung without reference to
any recent hangings of Hebrew
prisoners of war.”
Jewish Bandits Slay
Official in Bank Holdup
JERUSALEM, Aug. (A3).—Eight
young Jews, including a girl, killed
a Jewish official and wounded the
Jewish manager of Barclay's bank
in Haifa today and escaped with
$5,200,
The fresh violence came after the
Jewish underground issued a state
ment saying, "We have not yet
settled our hanging account with
the British.” They threatened new
hangings.
Last week two young British ser
geants, who had been kidnaped and
held hostages for two weeks, were
hanged in a forest preserve near
Natanya, where they strangled and
bled to death from wounds cut by
the thin, knotted ropes.
An underground statement denied
today that booby traps had been at
tached to the bodies of the slain
'sergeants in reprisal for the execu
| tion of three Irgunists the previous
| day at Acre Prison,
t The Barclay bank official who was
shot, to death had resisted the Jew
ish bandits. The bank manager was
i beaten until he opened the money
box. Witnesses said the robbers
I escaped in a taxi.
Crowds outside the bank first, tried
to stop the escape, but dispersed
j when shots were fired into the air.
: ^ A I
torn Advances umn
To New Record of $2.22
By th« Associated Press
CHICAGO, Aug. 4.—An alltime
high for any corn future in the 99
year history of the Chicago Board
of Trade was established today
when September corn sold at $2.22%
cents a bushel, up 8 cents from last
Saturday's close.
The previous alltime high was
$2.21 scored by the July contract
last month.
All corn for future delivery ad
vanced the 8-cent limit permitted
! in a single session within the first
i few minutes of trading. Strength in
corn was reflected in sharp advances
for wheat and oats.
Buying of corn was based on a
lack of ary important moisture over
the week end in the Midwestern
corn belt, temperatures expected to
reach around 100 degrees today, and
Weather Bureau forceasts of con
tinued dry weather. Com is in need
of moisture, grain men said.
Lincoln Papers Show Anxiety
Over Clemency Pleas in Army
nuiKiiam Lincoln s careiui consia
eration of mercy pleas for Army
deserters and others sentenced dur
ing the Civil War brought into sharp
focus by a number of documents
recently made public by the Library
of Congress.
Library officials today called at
tention to these letters as one prob
able reason why President Lincoln’s
son, Robert Todd Lincoln, insisted
the collection be sealed for 21 years
after his death.
Notations on the papers bear out
stories of pardons and clemency
often granted , by the President.
Among the papers are appeals of
generals brought to task for military
reversals and telegrams and letters
from wives and parents of deserters
and pickets who were found asleep
at their posts.
There is a report covering the
* !
period xrom July 1 to Novemoer 30,
1863, which Mr. Lincoln had pre
pared to show the incidence of Army
desertions. Of 592 men in the Army
of the Potomac tried in that period,
291 were found guilty, 80 were con
demned to death and 21 were shot.
Mr. Lincoln’s sympathy went out
to the wife of a deserter who
appealed directly to him on the
grounds the man was intoxicated
when he enlisted and therefore was
not responsible. He had received
only a uniform from his company,
and no pay before he decided to
return home to manage his business,
the wife said.
Mr. Lincoln replied: “Upon a good
man being furnished • * * and mus
tered into the service for the term
of three years, said * • • soldier is
(See LINCOLN, Page A-4.)
Court Action Begins
In Three Cities;
Fines Are Levied
t
By the Associated Press
LONDON, Aug. 4.—Court ac
tions began in three English
cities today against persons ar
rested in connection with anti
Jewish riots that followed the
reprisal hangings of two British
sergeants in Palestine.
At Liverpool 12 persons were re
manded on bail on charges arising
from what police prosecutor de
scribed as “anti-Jewish trouble dem
onstrations” during the week-end.
Many shop windows were broken
and crowds shouted anti-Jewish
slogans, he said. Trials w-ere set
for Thursday.
’ Five men at Salford, arrested on
similar charges, were released on
bail. These trials were set for next
Monday. The prosecutor there said
29 anti-Jewish incidents occurred
during tfce week-end and quoted
two of the defendants as shouting
“serves them right” and "I’ve got
a brother out there.”
Brick Throwers Fined.
Fines were levied against three
laborers in Manchester for throwing
bricks through shop windows and
being drunk and disorderly. Police
officer testified one of the men was
yelling “now is the time to strike
down with the Jews." He said the
sites of the window-smashing were
“littered with bricks."
Meanwhile, daylight disclosed fur
ther damage done to synagogues
during the night in other parts of
England.
After a noisy crowd had been seen
near a Ramsgate synagogue, it was
discovered that six windows were
shattered. Notice boards were torn
(See RIOTS, Page A-4.)
U. N. Officials Elated
Af Quick Acceptance
Of Cease-Fire Order
■ - ri -
However, End of Shooting
In Indonesia Still Will
Leave Many Issues
By the Associated Press
LAKE SUCCESS. Aug. 4.—
United Nations officials were
elated today over speedy ac
ceptance of a U. N. cease-fire
order in Indonesia, but cautioned
that the end of the shooting still
would leave difficult issues to be
settled.
The Dutch and Indonesian Repub
lic directives to cease fire were effec
tive only a short time before the
start of the Council meeting.
The development immediately
posed questions concerning U. N.
supervision of troop withdrawales,
mediation and other problems.
Council Chairman Paris El Khoury
said they would be taken up in
detail as soon as possible. The exact
time apparently hinged on receipt
of official communications from the
Dutch and Indonesian governments
and the crowded Council calendar.
Council Supervision Sought.
Dispatches from Jogjakarta said
the Indosian government wanted the
Council itself to "continuously
supervise execution” of its cease
fire directive and had demanded
the withdrawal of Dutch troops to
positions held when hostilities broke
out July 20.
The Jogjakarta advices likewise
said that the Indonesians wished
the Security Council to name “sev
eral countries” to act as mediators
in the dispute, implying that the
United States alone—which last
week offered its "good offices” as
a mediator—would not be satisfac
tory.
The government of the Philippines
also said over the week end that it
was ready to help mediate.
On receipt of news dispatches
about Dutch acceptance, the U. N.
public information office authorized
reporters to say that "high U. N.
officials expressed gratification at
the news but withheld official com
ment pending formal notification.”
A top-ranking member of Secre
tary-General Trygve Lie’s staff said:
“If the official reply bears out the
cease-fire announcement, the Dutch
will have fully complied. We are
assuming the Indonesians will do
likewise.”
The office of Abdu Rahman Azzam
Pasha, secretagyi general of the Arab
League, sisued a statement saying
(See U. N., Page-A-4.>
Indonesia Joins
Dutch in Order
To Cease Fire
Heeding of U. N. Plea
Will End 15-Day War
At Midnight Deadline
By the Associated Press
BATAVIA, Java., Aug. 4.—The
Indonesian republic joined the
Dutch tonight in announcing a
cease-fire order to troops, stop
ping hostilities in Indonesia and
giving the United Nations its
first big victory for peace.
A Republican reply to the U. N.
Security Council’s demand for a
halt to the 15-day war said the re
public was issuing a cease-fire to
all troops tonight. The announce
ment was broadcast from Jogja
karta shortly after 8 p.m. (8:30 a.m.
Eastern Daylight Time). The Dutch
had announced yesterday a cease
fire effective this midnight (12:30
pjn. EDT). Dutch advances had
halted even before the deadline.
Jogjakarta announced plans for a
midnight broadcast by President
Soekarno in his capacity as com
mander in chief of troops.
A Dutch spokesman said most
Netherlands units were already
pulled up, several hours before the
midnight deadline. There was al
most no activity today at Semarang,
which had been the Dutch troops1
expected jumping-off place for an
attack toward Jogjakarta.
uuicn Announce Lianamg.
The United Nations Security
Council last Friday called on both
sides to cease fighting.
In statements yesterday the Indo
nesians said they were “willing” to
cease hostilities, but that a truce
could be carried out effectively only
if the Dutch withdrew* to demarca
tion lines established last October.
There was no indication of Dutch
agreement to'^his.
At noon the Dutch announced
landing of troops on the island of
Madoera, off the east coast of Java.
Details of the operations on
Madoera—which was to have been
included in the Indonesian Republic
under the Cheribon agreements
were not disclosed by the army
spokesman, who said merely that
“safety measures” were being taken
at the request of the population.
Rice Being Shipped.
He added, however, that large
quantities of rice were being shipped
to Madoera for relief of the 1,000,
000 or more persons living on the
island, most of whom he said were
starving as a result of being cut
off from the Java mainland.
Orders for Dutch troops to cease
military operations effective at mid
night tonight were issued last night
by Dutch Acting Gov. Gen. Hu
bertus J. Van Mook despite an ex
pressed belief that the U. N. Security
Council was exceeding its authori
ties in intervening.
Broadcasts from the Republican
capital of Jogjakarta last night Said
the republican government agreed
“with the (Security Council) de
cision that hostilities should cease
and was prepared to concert all its
effort for the execution of the cessa
tion of hostilities.”
The broadcast statement added,
however, that the republican govern
ment was “of the opinion that the
cessation of hostilities can be carried
out effectively only if the armed
forces of both sides be withdrawn
(See INDONESIA, Page A-4.)
Mia-80 Temperature Seen
Despite Overcast, Rain
Showers^ fell throughout the
Washington area this morning from
skies so dprk that in the downtown
section some store windows and
signs were aglow^and some automo
bile lights were on after 9:30 a.nw
An unusually heavy rainstorm
struck in the Hyattsville area short
ly after 9 a.m.
Despite the heavy overcast, the
Weather Bureau clung to its pre
diction of temperatures reaching
into the middle 80s this afternoon,
followed by a thundershower. It
was 79 at 2 p.m.
Tonight the mercury may dip to
72 degrees, but the District can ex
pect the first of several unpleasant
days tomorrow, with readings of 90
to 92 degrees and high humidity.
British Officers' Hotel
In Vienna Blasted
•y the Associated Press
VIENNA, Austria, Aug. 4.— Two
bombs exploded today in a small
basement room of the Sachers Hotel,
a transient hotel for high British
officers.
A spokesman for Brig. D. C.
Hoshaw, British area commander,
told a news conference no one was
injured and that damage was less
than $400. He was unwilling to as
sign any reason for the blasts.
Douglas and Caffery
Discuss Marshall Plan
■y Iht Associated Press
PARIS, Aug. 4—Lewis Douglas,
American Ambassador to Britain,
has arrived in Paris for a conference
with Jefferson Caffery, United
States Ambassador to France, on
over-all aspects of the Marshall
plan in Western Europe.
An American Embassy spokesman
said Mr. Douglas would be in Paris
for several days.
Nitrate Ship Ordered Out
LE HAVRE, France, Aug. 4 (lV
rhe freighter Ogna from New York,
loaded with 2,300 tons of ammonium
nitrate, left Le Havre for an unan
nounced destination today after port
authorities ordered her out of the
harbor. A ship loaded with a similar
cargo exploded last week at Brest.
Royall Returns From Reich
Secretary of War Royall today
returned by plane from Germany
where he went last Tuesday to in
spect the military government setup.
I
'
U. S. Stand 'Shocks'
Judge in Eisler Case;
Defense Wins Ruling
Court Declares Falsity
Of Statements K\ust
Be Considered Material
By Newbold Noyes, Jr.
Justice James W. Morris de
clared today he was "shocked”
by a Government contention that
if Gerhart Eisler mide false
statements to the State Depart
ment in 1945, he is guilty of pass
port fraud whether or not those
statements were important.
The jurist said the falsity of the
reputed Kremlin agent’s statements
must be considered material if he is
to be found guilty in his District
Court trial.
‘‘Can you conceive of a man being
punished for making a complete
ly immaterial misrepresentation?”
Justice Morris asked Assistant Unit
led States Attorney William Hitz.
The young prosecutor said he
could.
"Beyond Comprehension.”
Justice Morris said Mr. Hitz’s view
was ‘‘beyond my comprehension.”
He ruled the jury has a right to
know all the circumstances sur
rounding the Government’s dealings
with Eisler in his efforts to leave the
country during and after the war.
Eisler, allegedly the chief agent
of international communism in the
United States, is being tried on
charges that, when he applied in
September, 1945, for an alien exit
permit to his native Germany, he
fraudulently neglected to state he
had Communist affiliations, had
used aliases and had been in the
United States in 1935 and 1936.
Claims U. S. Knew Answers.
The defense has been tryiftg for
two days, in the absence of the jury,
to get into the case its contention
that when the State Department
fiinally granted Eisler permission to
leave the country in June, 1946, it
knew the answers to the questions
he is accused of answering falsely
the year before.
This means, according to Eisler's
lawyers, that the pudgy little de
fendant could not have been trying
to get the exit permit by defraud
ing the government.
Eisler knew, it is claimed, that
his chances of getting the permit
would not be affected by his answers
to these questions, no matter how
he answer^ them.
The Government argues that the
permission to leave the country
granted Eisler in 1946 had nothing
to do with the application for such
permission which Eisler filed in 1945.
Bone of Contention.
This has ben the bone of legal
contention in the trial for the last
several days and Justice Morris's
ruling that the defense can intro
duce evidence in support of his posi
tion on the question is a consider
able victory for Eisler’s counsel.
Justice Morris said Eisler’s al
leged misrepresentations, if they are
| (See EISLER, page A-4).
i Italian Girls Stripped
LIVORNO, Italy, Aug. 4 </P).—A
group of young Livorno men, com
plaining that some of the city’s
girls were too brazen, stripped
several in the main square last
night and paraded them through
the principal / streets. Italian police
and United States military police
finally ended the incident.
U. S. Naval Force Greets
Italian Cruiser Group
By the Associated Press
ROME, Aug. 4.—The newspaper II
Messaggero in a dispatch from from
La Maddalena, Italian naval h^se off
Sardinia, said today an Italian
cruiser squadron engaging in its first
postwar training cruise had ex
changed courtesies there yesterday
with an American naval force.
Visits were exchanged between
Admiral Giuseppe Mafredi, com
manding the Icaliaij force, and Vice
Admiral B. H. Bieri, commanding
United States naval forces in the
Mediterranean, the dispatch said.
Police-Recover Bodies
Of Two Men After
Canoe Overturns
Dragging Is Continued
For Victim Who Fell
From Cabin Cruiser
The bodies of two young men
!who drowned when their canoe
capsized in Little River, near
'Roosevelt Island yesterday were
recovered early today by harbor
police. TTiey continued to drag
the Potomac for a third person
who fell from a cruiser at the
foot of King street, Alexandria,
Saturday night.
Wallace Nathan Phelps. 23, of 2203
Evarts street N.E., and Norman
Matlow, 20, of 1345 Saratoga avenue
N.E., were drowned when their 14
foot rented canoe overturned. Their
bodies were located in 11 feet of
water near where they were last
seen, police said.
uames a. nenarix, 02, 01 1363 Penn
sylvania avenue S.E., fell from the
33-foot motor cruiser belonging to
John M. Crandall, 518 Fourteenth
street S.E., when he leaned overside.
Mr. Crandall jumped overboard
after him but Mr. Hendrix slipped
from his grasp and disappeared.
Canoe Recovered.
Two witnesses, E. R. Haltman and
W. E. Downey of Rosslyn. Va„ told
police they saw Phelps and Matlow
fall out of the canoe but before
they could get to them the men
had disappeared. The overturned
canoe was recovered several hours
later.
Mr. Phelps, the son of Mr. and
Mrs. Richard B. Phelps of the Evarts
street address, was a George Wash
ington University graduate employed
as an architectual draftsman at his
father's stone company. He was a
graduate of McKinley High School
and is survived by his parents ahd
the following brothers and sisters:
R. B. Phelps, jr., of the Evarts
street address; John S. Phelps, 1723
East Capitol street; Mrs. Bernice H.
Taylor, Cheverly, Md.; Mrs. Aubrey
Stine, Winchester, Va.; Mrs. Marian
Phelps Cook' 4015 Ninth street N.E.,
and Mrs. Doris L. Tydings, Spring
field, Md.
Survived by Parents.
Mr. Matlow, a seniA in mechani
cal engineering at George Washing
ton and a McKinley High graduate,
is survived by his parents, Mr. and
Mrs. Jacob Matlow of the Saratoga
avenue address and two brothers and
two sisters: Irving M. Matlow of
the Saratoga avenue address; Larry
Matlow of Brooklyn; Mrs. Sylvia
Becker, Brooklyn; and Mrs. Matilda
Graus, Alexandria.
Dr. Christopher J. Murphy, dep
uty coroner, issued an accidental
drowning certificate in both deaths.
Meat Prices Show Some Gain
Over Last Week's High Levels
Meat prices in Washington area
stores surveyed today held firm at
high levels with some slight upward
trend from prices a week ago.
T-bone steaks, which were quoted
at from 85 cents to $1.25 a pound a
week ago, today were from 89 cents
to $1.25, while loin lamb chops, listed
at from 71 cents to $1.19 a pound
last week, brought from 89 cents to
$1.25.
Prices of all types of meats range
from 9 cents to around 30 cents
higher than a year ago.
Frankfurters brought from 43 to
59 cents a pound today and whole
ham ranged from 71 to 75 cents.
Grocers throughout the area ap
peared a bit shame-faced at the
meat prices. A spokesman for one
of the largest grocery chains said.
“We certainly are not very proud
of them, but find that we are unable
*
to do anything about it since the
price at the market in Chicago is
the basis and the prices there are
high.
“The margin of profit has been
cut to the bone.”
This statement was echoed by
Joseph B. Danzansky, counsel for
the Meat Division of the Merchants
and Manufacturers’ Association,
who was critical of any attacks on
the meat price problem except at the
farm level.
"The only relief from high meat
prices must come from the farmer,”
he said.
Mrs. Mary E. Gresham of the Wash
ington Committee for Consumers
Protection, which recently sponsored
a “Don’t Buy Meat Week,” said the
group felt that the drive had had
some deterring effect on prices. The
(See MEAT, Page A-4.)
Frank Hoover, Head .
Of GSI, Offers to Quit;
TrusteesHold Decision
Manager of Cafeterias
And Other Enterprises
Cites Need of Rest
By Joseph Young
Frank W. Hoover, general
manager of Government Serv
ices, Inc., which is under inves
tigation by the Senate Civil
Seryice Committee, has offered
his resignation to the nonprofit
corporation’s Board of Trustees,
it was disclosed today.
It was not indicated, however,
when the board will - act on Mr.
Hoover’s request, or if the members
will try to urge him to remain.
GSI, which operates 53 cafeterias
and snackbars here in 'Federal
buildings, has figured prominently
In the news during the past eight
months.
Investigated by Senate.
A strike by its employes tied up
service in the cafeterias last Janu
ary, and then a Senate Civil Service
Subcommittee started an investiga
tion of GSI. .The investigation has
been completed and a recommenda
tion concerning GSI’s future is ex
pected to be made when Congress
reconvenes.
Mr. Hoover told the board he
needed a rest after more than 30
years of service In the business of
serving food to government workers.
He gave no other reason in offering
to give up his $16,000-a-year job.
If Mr. Hoover's resignation is ac
cepted. it will be the second major
change in the organization's setup
FRANK W. HOOVER.
—Star staff Photo.
in a few months. Recently Maj.
Gen. U. S. Grant III, formerly a
member of GSI's board of trustees,
was elevated to the presidency.
New Contract Studied.
GSI officials also are conferring
with officials of the Public Buildings
Administration over the possibility
of a new contract between the com
pany and the Government, in which
the Government would receive a
more liberal share of the profits. The
proposed new contract also would
subject GSI to closer Government
supervision.
Investigators for the Senate Civil
Service Committee presented evi
dence during the recent committee
hearings that was designed to show
GSI’s business affairs were con
ducted loosely, with little supervision
from Government officials.
Mr. Hoover Insisted GSI was a
well-run business, and any mistakes
that might have been made were
unavoidable ones that could be made
by any business organization.
i^o rroni snown Hecentiy
Besides its cafeterias, GSI operates
swimming pools, boat and bicycle
renting agencies, resorts and tourist
camp6. Under its contract with the
Government it shares its profits
50-50 with the United States Treas
ury. However, no profit has been
shown during the past few years.
Mr. Hoover’s participation in the
restaurant business here dated back
to World War I when the Govern
ment had great difficulty in devising
means of providing lunches for its
employes.
Mr. Hoover teamed up with Gen.
Grant and organized what later was
to develop into Government Serv
ices, Inc. Mr. \ Hoover and GSI
officials pointed with pride to their
record from 1941 to 1946, when they
provided service to the 287.000 em
ployed who worked for the Govern
ment here durin gthe war.
4
New UAW Plan
Gives Hope for
Peace at Ford
Terms of Proposal
At Last-Ditch Talks
Are Not Revealed
By th« Associated Pros*
DETROIT, Aug. 4.—An official
)f the CIO United Auto Workers
;aid today that the union had
1 new proposal which it hoped
vould avert a strike of 107,000
rord Motor Co. employes.
Richard T. Leonard, UAW-CIO
■'ice president, did not reveal terms
sf the new suggestion which he
said was to be offered to the com
pany at a last-ditch negotiating
session.
The strike was scheduled for noon
tomorrow.
Mr. Leonard's statement came
moments after the company delega
tion announced that it had no new
plans for .averting the threatened
walkout, which would be the first
major strike in the auto industry
in 17 months.
John S. Bugas, company vice
president, told reporters as he en
tered the all-important session at
the downtown Book Cadillac Hotel:
“We have no further counter pro
posals on either issue.”
ruru nexuses 10 Attend.
The two sides are at odds over a
pension plan and contract terms to
protect the union against penalty
provisions of the Taft-Hartley labor
law.
Henry Ford II, youthful head of
the big auto firm, refused to at
end the last scheduled session, al
though he cut short a vacation to
return here.
“I do not think my attendance at
this morning's session could add
anything helpful," the youthful
company president asserted early
today in a telegram to Mr. Leonard,
bead of the Auto Workers’ Ford De
partment.
He termed the proposed walkout
‘not an attack on the labor policy
of the Ford company but a strike
against the law,” and added that
the UAW-CIO seemed “determined
to strike” unless we agree with you
to establish for all industry what
seems to, us a disastrous precedent
for scuttling union responsibility '
provisions in the Taft-Hartley law.”
Approved by Union Officials.
No progress was reported by ne
gotiators who conducted' day and
night talks during the week end.
The.Walkout has been approved by
the union's international executive
board, the Ford division and the
rank and file.
Mr. Ford denied the union of
ficial's contention that a disputed
pension plan was a major issue in
the dispute, insisting he saw no
“major difference between us” on
that point.
“I must remind you,” he told Mr.
Leonard, “that during the last 10
days of negotiation, you have re
fused even to discuss this retire
ment plan.”
Mr. Leonard, however, maintained
‘we would still be battling over the
conference table for a pension plan
if the Taft-Hartley law had never
been passed.”
He said the company was “using
the Taft-Hartley issue as a smoke
screen to enable it to crawl out
from under its pension commit
ments.”
a/viuto vviupauj ncuc§cu>
Mr. Bugas denied Mr. Leonard's
charge that the company "reneged”
on those commitments "because its
negotiators were unable to sell the
Ford Co.’s Policy Committee on the
plan.”
The two parties jointly announced
a tentative Ford pension plan more
than a month ago and indicated at
that time that a new contract was
almost ready for signing.
Since passage of the Taft-Hartley
Act, however, the union has de
manded contract safeguards to pro
tect itself against possible damage
suits for illegal strikes, as provided
in the soft coal agreement recently
negotiated by John L. Lewis.
Mr. Bugas said the union had
given that demand “top priority”
and had made it “a must and an
ultimatum.” Only a few minutes
out of eight hours of bargaining yes
terday were devoted to the pension
plan, he added.
Two proposals closely following
one advanced by Mr. Ford last week
g (See^FORDTPage A-4.)
A - .m a ■ ■ « . mm
Attlee labinet Muflies
Economic Crisis Plans
By the Associated Press
LONDON, Aug. 4.—Prime Minis
ter Attlee met with his top cabinet
ministers today to put the finishing
touches to the plan of battle for
Britain's economic survival.
‘‘Crisis” talks—How to tackle the
economic situation caused by the
rapid drain on the Nation’s dollar
credits—went on at No. 10 Downing
street throughout the day.
A special economic cabinet in
cluding Mr. Attlee, Foreign Secre
tary Ernest Bevin, Chancellor of the
Exchequer Hugh Dalton, Lord
President of the Council Herbert
Morrison, and Board of Trade
President Sir Stafford Crippe, is
doing most of the work. It will
report to a full meeting of the
cabinet tomorrow.
The plan will be announced by
Mr. Attlee Wednesday at the start
of a two-day debate in the House of
Commons on the state of the nation.
There will be a parallel debate in
the House of Lords.
The Prime Minister’s engagements
today included a meeting with the
Defense Committee to consider cut
ting the sire of British armed forces
in Germany, Austria, Greece and
[taly.
Mr. Attlee presided at the meeting
)f service chiefs. Field Marshal
discount Montgomery, chief of the
mperial general staff who is hurry
ng home from a tour of the Far
East, was represented by a deputy.
t

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