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Wight final Wltlon. $1.30 and $1.40 per Month, O 1 O Reds Free Trains For Berlin After All-Night Half Russians Consent to Discuss Whole Issue At Meeting Monday By the Associated Press BERLIN, June 12.—The Rus sians blocked freight shipments from the western occupation zones of Germany throughout the night, but agreed to restore the traffic to Berlin, American and British officials announced. An American official said the Rus sians consented to discuss the whole question of Berlin freight at a spe cial meeting of Russian, American, British and French transport offi cials Monday. Trains from the western zones must pass through the Soviet Zone of occupation west of Berlin in order to reach this city. The Soviet check point is at the border of the Russian and British zones. American and French traffic as well as British traffic bound for Berlin passes that check point. Six British Trains to Move. Six British trains which were held up In the Soviet zone after the new order became effective last night will be released and sent to Berlin as soon as locomotives can be pro vided for them, the British said. The Russians also agreed to permit normal traffic over the route through the Russian zone by 18 daily trains. There is a heavy backlog of trains held up by the Soviet order however. There are 2,000,000 Germans and 25.000 Americans, French and Brit ish in the Western sectors of the city who would be seriously affected by a stoppage of freight shipments. Gen. Lucius D. Clay, American military governor, told a news con feren-e a freight train from the Amei n zone was stalled this aftemc at the Anhalter railway station in Berlin. U. S. Train Cleared. Later Col. H. W. Holmer, Ameri can transportation chief, said the Anhalter train had been cleared. It was understood that American switch engines, guarded by GIs, broke up the stalled freight and switched it to the proper points when the Soviet-controlled rail of ficials refused to act. The only other American train stopped up to this afternoon was a supply train destined for the Ger man population of the American sector. “I don't know the full Russian in tentions,” Gen. Clay said. "I in tend to find out ^the facts before deciding what action to take.” Full terms of the British-Russian agreements were not made known Immediately. The British said earlier the Russians were “not unreason able” in requesting that shipments for Berlin be labeled with their exact destinations. They had been ad dressed simply to the Berlin Kom mandatura. Trains were stopped at the Helm stedt-Marienborn control point on the border of the British and Soviet occupation zones. This was the point where the Russians in April ordered trains stopped for inspec tions by Soviet officials before pass ing through the Soviet zone of Ger many to Berlin. The four-power Berlin enclave is an island well within the Soviet zone of occupa tion. Other Developments Listed. There were other developments: An American Military Government official said Soviet-sponsored Ger man Communists are attempting to foment strike waves in the American and British sectors of Berlin, osten sibly to protest western recognition of anti-Communist leadership of Berlin's trade union federation. The Russians, who rejected Brit ish demands to surrender the Berlin radio station situated in the British zone of Berlin, announced a new propaganda broadcast from the sta tion. beamed to Western Germany and designed to give what the Rus sians call a “true picture of de velopments in the Russian zone as well as information about their own zones which they might not know.” Earlier, United States Army offi cials said they have posted guards on American-operated railroad switch engines in Berlin to keep the Russians from taking them. Travel Dispute Rages. This week had witnessed an in creasing controversy over travel be tween the Russian and British American occupation zones. The Russians today continued to turn back hundreds of Germans seeking to travel into their zone from Western Germany on the grounds that new interzonal travel documents were required. At one point on the American Soviet zone border the Russians closed a station where exchange is; made of refugees and illegal border crossers. Firestone Grants union It-Cent Wage Increase By the Associated Press AKRON, Ohio, June 12 —Fire-' stone Tire & Rubber Co. and the CIO United Rubber Workers signed a company-wide contract today pro viding for 11-cent-an-hour wage increases for 23,000 employes. The contract was Firestone’s first company-wide pact with the union, which has such agreements with Goodyear, United States Rubber and Goodrich, the other members of the rubber industry's Big Four. The settlement was the first in the Big Four of union demands for the 1948 wage increases. The union originally asked 30 eents an hour more. Goodyear and United States Rub ber are currently engaged in nego tiations and Goodyear employes have agreed to take a strike vote next Wednesday as a result of a breakdown of bargaining sessions in Philadelphia last week. President Promises to Tell More About'Old Joe' Tonight Stalin Wants to Keep Word, but Is Held Prisoner by Politburo, Truman Declares By Joseph A. Fox Star Staff Correspondent ABOARD PRESIDENT TRU MAN’S SPECIAL TRAIN, June 12.—President Truman today was nearing the end of the line on the first half of his trans continental swing, with a prom ise to the Nation to have some thing to say on American rela tions with the Soviet and “Old Joe,” meaning Prime Minister Stalin. Preparing for the fourth major speech of his trip on foreign rela tions at the University of California commencement this afternoon, the President tossed in the homely diminutive in referring to the Rus sian leader as "a prisoner of the Politburo" in a rear-platform talk early last night at Eugene, Oreg., i where several thousand residents were on hand for a welcome. The remark brought laughter. In the frankest public comment in which he has indulged on the Russian situation the President told his audience of his hopes for world peace, and added: ! “I went to Potsdam in 1945 with that in view. I went there with the I kindliest feelings in the world to ward Russia, and we made certain agreements, specific agreements. I got very well acquainted with Joe Stalin, and I like Old Joe. He is a decent fellow. “But Joe is a prisoner of the Po litburo. He can’t do what he wants to. He makes agreements and if he could he would keep them. But the people who run the government are very specific in saying that he can't keep them. “Now sometime or other, that great country, and this great coun try, are going to understand that their mutual interests mean the welfare and peace of the world as a whole. I am going to tell you about that tomorrow at the Uni versity of California.” The brief—but blunt—discussion of the Russian situation served to, point up the speech the President is making at the Berkeley institu tion at 7 p.m., Washington time, when he receives another honorary degree. It will be carried by four major networks. Careful preparation was made on the address, which was not whipped into final shape until last night i when the presidential train swept ( southward through Oregon and into ! California, where the next three days will be spent. There was some thought that the (SeeTRUMAN, Page A-3.i Charges of Violations Threaten to Blow Up Truce in Palestine Arabs Reserve Right of Quick Reprisal Action, Note to Bernadotte Says By tH« Associated Press CAIRO. June 12.—Charges of violations by both sides threat ened to blow up Palestine’s powder-keg truce today. "The Arab government reserve the right of quick action in reply to criminal Zionist attacks,” an Arab League note to the United Nations mediator, Count Folke Bernadotte, warned. An Arab League repre sentative routed the mediator out of his bed before dawn to give him the message. The Wtews also warned that viola tions would provoke Jewish counter attack, and they charged the truce, now in its second day, had been broken in several Palestine sectors. Bernadotte Leaves Cairo. Count Bernadotte and his aides left Cairo by plane early today for the Greek Island of Rhodes, by way of Trans-Jordan and Jerusalem, to begin preparations for peace ^alks. He said the truce violation charges were being investigated. A high Jewish officer held out a veiled threat of reprisal bombings against 1 Arab capitals as he accused the Arabs of breaking the truce. Count Bernadotte said he planned to fly to Amman. Trans-Jordan, and then to Jerusalem and later today to Rhodes. He added this schedule was subject to change. He told reporters Swedish and American military observers had arrived in the Holy Land and gone to the scenes of neported truce ! infractions. He had no reports from I them yet. He explained that com munications were poor between Cairo and Palestine. U. N. Group With Bernadotte. The truce, to last four weeks, began yesterday morning. It was arranged to give Count Bernadotte a chance to negotiate for permanent peace in the Holy Land. Israel, the Jewish state proclaimed when Britain gave up her rule over Palestine, May 15, since then has been fighting with invasion armies of six Arab countries, helped by Palestine Arabs. With Count Bernadotte on his flight was a group of U. N. men. Among them were Dr. Ralph Bunche, personal representative of Secretary General Trygve Lie, and William Stoneman, on Mr. Lie's staff. Col. Thord Bonde of Sweden, chief of military truce observers, was left in charge of the mediator’s staff remaining in Cairo. Will Return to Cairo. The mediator plans to return to Cairo Tuesday to begin talks with | representatives of Arab governments i now gathering here for a meeting Monday of the Arab League Political Committee. In these talks he is expected to explore the possibility of getting Arabs to attend a peace conference with Jewish authorities and him self on Rhodes. No time for the pro posed conference has been men tioned, but it is not considered likely in less than a week. The note handed to Count Berna dotte by the Arabs before he left said their countries cannot “tol erate Jewish violations of the truce” and warned that if such continue, "the Arabs will lose their patience.” The note was drafted shortly after midnight at a' meeting called by Secretary General Abdel Rahman Azzam Pasha of the Arab League. Israeli’s Issue Warning. The chief of operations of the Jewish high command said in Tel Aviv last night that Arabs had vio lated the truce on the northern, central and southern fronts. He warned that the Israeli army might; (See PALESTINE, Page A-2.1 Mattress Fire Put Out In Downtown Building Firemen were called to a down- : town fire at 7:30 am. today to ex- ■ tinguish a blaze in a mattress in a '• room on the third floor of a building i at 501 Twelfth street N.W. Frank B. Wilcox, 30, a tenant in I the building, awoke to find his room I filled with smoke. He climbed out i to a fire escape and aroused a ten- : ant in an adjoining room. Firemen tossed the mattress from a window.] No one was injured. * a ERP Fund Cut Studied By Senate Committee At Closed Session Appropriation of 4 Billion For 12 Months Expected To Be Recommended By the Associated Press The Senate Appropriations Committee went into closed ses sion today to decide how much American cash should be spent to speed Europe's recovery. The committee had before it a House cut of between $1,000,000,000 and $2,000,000,000 in the foreign aid program designed to help friendly countries halt the spread of com munism. The slash was expected to be considerably smaller by the time the Senate gets through with the measure. i The appropriations group called Tn several witnesses for secret testi mony before making a final deci sion. Among them were Economic Co-operation Administrator Paul G. Hoffman and Lt. Gen. Albert C. Wedemeyer, chief of the Army's1 Plans and Operations. Cut Riaky, Sava Marshall. The administration asked a total of $6,533,710,228 for a 12-month aid program, including assistance to Greece, Turkey and China. But the House voted $5,980,710,228, to be spread over 15 months. Secretary of State Marshall told the Appropriations Committee yes terday if the cut stands it will change the entire aid program from "a calculated risk for success” to one of “a calculated risk for failure.” The committee is expected to restore most of the House cuts and put the vast spending measure up for a Senate vote early next week. The greatest issue at stake is the $5,300,000,000 ECA recovery program intended to help 16 Western Eu- j ropean nations. Congress already has given ECA authority to issue $1,000,000,000 in notes, and has added anothet $55,000,000 in appropriations. This leaves $4,245,000,000 to be appro priated. 245 Million Cut Seen. Influential Republicans say pri vately they believe the Senate Ap propriations Committee will give ECA $4,000,000,000 for 12 months. This would be a cut of $245000,000 as against a House cut estimated at $1045,000,000. These other major items wTere in volved in the House cut: Aid to Greece and Turkey—$200. 000.000 instead of $275000.000 asked. Aid to China—$400000000 instead of $463,000,000 asked Aid to Trieste—The $20,000,000 asked for this was earmarked by the House to come from the gener.il; ECA fund. Government and relief in occupied areas—$1,250,000,000 instead of $1, 400,000,000. Plane May Have Bombed Koreans, Air Force Says By the Associated Press TOKYO, June 12.—United States Far East Air Force headquarters said today that American planes may have been involved in the re ported bombing of Korean fishermen in the Japan Sea last Tuesday. A press statement said there is a bomb training range in the general area where Korean fishing craft were reported hit. A bomber mis sion was flown Tuesday. Korean police said 14 fishermen were killed in attacks by nine un identified planes.__ Taft Act Blocks Maritime Peace, Fact-Finders Say Strike Is Inevitable Tuesday Unless Court Acts, Board Asserts By the Associated Press A presidential inquiry board today blamed the Taft-Hartley: law for the deadlock which threatens the entire American merchant marine with a strike next Tuesday. In a report to the White House the five-man board said maritime 'employers and unions want to con tinue their traditional hiring hall j system, but the employers consider that the new labor law makes it illegal. The board, headed by Harry Shul man of Yale University Law School, spoke of an all-coast shipping walk out as inevitable unless barred by court order. I President Truman is expected to; order the Justice Department to apply for a Taft-Hartley injunction against the strike, which would stall the Nation's foreign relief program. Injunction Next Step. An injunction is the next step under the Taft-Hartley Act's pro cedure for handling national emer gency labor disputes once an inquiry board has done its fact-finding job. A strike would tie up all Ameri-! can flagships on the Atlantic and Gulf coasts and all American and foreign shipping on the West Coast. Approximately 150,000 workers, represented by seven unions—five of them CIO. one AFL and one inde pendent—are involved in the dis pute. The two largest are the CIO National Maritime Union on the East and Gulf coasts and the CIO Longshoremen on Pacific Coast docks. The board, appointed by the President under terms of the Taft Hartley Act, said it was “entirely clear” the basic dispute rises from j the act itself. Hiring Halls Major Issue. While there are scores of unset tled issues, including demands for more wages, the board found that all these had been sidetracked in the hiring-hall argument. The hiring hall is the system, long in use in the maritime industry, which gives unions the right to fur nish seamen and dock workers re tired by employers. The stalemate is this: The un ions want the hiring hall continued; the employers say it is now pro hibited by the Taft-Hartley Act’s ban against giving hiring preference to union men over non-union me. “The positions of both sides with respect to the employment issue have been quite adamant,” the re port said. “With minor exceptions, neither side has attempted to use imagination or ingenuity to resolve the controversy.” Snagged by. New Law. The board said that if it hadn't been for the “perplexities presented by the impact of the new law on the established practices" of the in dustry, it seemed likely “the parties would have succeeded in reconciling their differences without the prob ability of a strike.” And, the board continued, it is apparent that except for the new law the employers would willingly keep the hiring hall. The report said East Coast employers testified they would continue using the hir ing hall system even thought they feel barred legally from agreeing to do so in a written contract. Members of the board besides Mr. Shulman are Andrew Jackson and Jesse Freidin, New York attorneys; Arthur P. Allen of the University of California and George Chaney, San Diego labor consultant. Creighton Defeats Jenner tn Indiana Governor Race By the Associated Press INDIANAPOLIS, June 12—Ho# bart Creighton, speaker of the Indi ana House of Representatives, de-; feated Senator Jenner of Bedford for the Indiana Republican guber natorial nomination last night. Mr. Craighton’s nomination came on the second ballot at the close of the State convention after two other candidates who had trailed in the first vote transferred their support to the victor. The convention, which also nom inated candidates for 10 other State ! offices, afforded the first test of a j new State law providing a secret! ballot for the delegates, who used voting machines. t Indiana Republicans completed their delegation to the natiohal con vention with election of seven dele-i gates-at-large. Twenty-two other delegates—two from each congres sional district—were chosen Thurs day night. The convention indorsed Majority, Leader Halleck as Indiana's favor ite-son presidential candidate but gave delegates no binding instruc tions. __ j Russians Reported Using Jets Designed for Supersonic Speed By tH« Associated Press NEW YORK, June 12.—Aviation Week says that motion picture film smuggled out from behind the iron 'urtain shows the Soviet has jet planes designed for faster than sound flight. These include Russian versions of :he Nazi DFS 346 which reportedly reached a speed of 748 miles per Pour, the current issue of the maga iine, a McGraw-Hill publication, says. “The whole aeronautical world has >een wondering whether Russia has seen able to exceed the speed of sound,” the magazine says. "These reports indicate this ship has." Drawings of Soviet planes shown in the magazine, it adds, are based on film made “from the ground with i % a camera equipped with a telescopic lens as the planes were tested.” Aviation Week says the photo graphs did not originate with Mc Graw-Hill s Moscow bureau but ‘‘ar rived in this country by a circuitous route.” No other details are given. The magazine says the Russians took over the German's unfinished DPS 346 along with its engineers at the end of the war. Both Soviet versions are decribed as research fighters. Last Thursday, Air Force Secre tary Symington said the United j States Air Force's experimental Bell XS-1 ‘‘has flown much faster than the speed of sound many times.” | Sound travels at about 760 miles j (See RUSSIAN PLANES, Page A-2.)1 ff m. _© -=^_, <3c& . WHO SAYS \ / BOTH SIDES/ l CANT BE \ V RIGHT? ) Act to Outlaw Strikes On Railroads Proposed To Joint Committee Industry Spokesman Says Public Must Be Protected From 'Indefensible' Tieups By the Associated Pres* A spokesman for railroad management proposed today that Congress outlaw big railroad strikes such as was threatened this spring. J. Carter Fort, vice president and general counsel of the Association of American Railroads, said. “There can be no doubt that indefensible railroad strikes must be prevented by law if the national welfare is to be protected.’’ Mr. Fort was a witness before the' Senate-House Committee on Labor Management Relations. That group is making a general study of what changes may be advisable in labor laws. A strike this spring was averted because the Government seized the railroads and got a court order against a strike. A strike had been called by three railroad brother hood.\—the locomotive engineers,! the firemen and enginemen and the switchmen. Move Made as War Power. Mr. Fort told the congressional, committee that the Government could do this only because the wari never has been declared officially! to be over. He said some machinery is needed to prevent a railroad strike when there is no technical1 state of war. In offering remedies, Mr. Fort told the committee: “One way would be to amend the Railway Labor Act so as to provide that in time of war, or in time of national emergency declared by Congress or proclaimed by the Pres- j ident as a result of stoppage or. threatened stoppage of essential' transportation, railroad strikes or lockouts are prohibited, with injunc tive relief available, when such strikes or lockouts are for the. pur pose of enforcing demands which have been submitted to a presiden tial emergency board and which have not been' approved or recom mended by such board, or are for the purpose of resisting demands which have been approved or recom mended by the board. “Another approach would be to amend the Railway Labor Act soi as to make decisions of presidential emergency boards binding on both the railroads and their employes and to prohibit any strike or lock outs with respect to such decisions.” Called “Limited Measures.” Mr. Fort said the legislation he proposed would be designed “merely to protect the public from the ruin ous consequences of the failure to agree on the part of management and men, and the remedies provided would be limited measures appropri ated to that end.” He said such legislation “certainly would not deprive the employes of any just rights.” He said workers would be guaranteed against imposi tion upon them “of any wages or working conditions, even for a temp orary emergency period, which had not been found to be just and fair by a presidential appointed board.” The present Railway Labor Act provides for creation of emergency boards by the President when man agement and the union are unable to agree. Such boards recommend terms for < See^RAILRbADSrPage~A-2.) Bulletin Sailors Hurt in Bus Crash Five persons were injured, I none believed seriously, in the i collision of a chartered A. B. j & W. bus containing 42 sailors and a truck on Central avenue about a mile east of its inter- | section with the Largo road, , in Prince Georges County, Md. 1 Four of the injured were sail ors, passengers on the bus, one of 13 chartered by Navy personnel from Quarters K at the Arlington Navy Annex and WAVE Barracks B in Potomac Park for an outing at Triton j Beach, Md. The fifth injured person war driver of the truck, John T. Adams, 44, colored, of Upper Marlboro, who suffered j a cut face. ft Smoke of Fires In Ontario Woods Shrouds Sun Here Smoke from a forest fire in Can ada affected the weather here to day, and with occasional clouds was expected to keep the sun from stay-j ing out. The Weather Bureau said the cloud has traveled more than 1,000 miles from its origin in Ontario, spreading as far south as Alabama and Georgia. Sunsets have been j redder than usual and, occasionally, the sun has appeared to be ringed by a ruddy halo, an observer said. Forecasters refused to predict' how long the smoke would affect ; weather here. They said it depends J on the wind direction. The week end, they said, will be generally fair and warm with a; possibiliU' of thunderstorms to morrow afternoon. — Lewis and Operators Open First Discussion On New Coal Contract UMW Chief Relaxes Stand Against Parley Until Pension Is Settled By James Y. Newton John L. Lewis and soft-coal operators today discussed a new coal industry contract for the first time in the week of negotia tions here. Until today, Mr. Lewis had in sisted he would not discuss details of a contract to take the place of the present one, which expires June 30, until he and the operators had settled the long controversy over' the payment of pensions and dis tress benefits to miners from the *40,000,000 United Mine Workers’ welfare and retirement fund. Thei money, has accumulated since last! July 1, when the present contract went into effect. Mr, Lewis and his negotiators met with the operators for more than two hours today. On leaving the session, Charles O’Neill, spokesman for the operators, indicated the deadlock over the welfare fund had been broken. Mr. O'Neill said the negotiators discussed details of a new contract, including wages, as well as devoting time to the pension and welfare issues. To Resume Talks Monday. The coal contract negotiations were adjourned until 3 p.m. Monday. Mr. Lewis apparently was willing to discuss new contract details be cause he held that the argument ;over payment of death and distress benefits to the miners and their dependents was settled by the wel fare fund trustees last night. The UMW chiei and Senator Bridges, Republican, of New Hamp shire pushed through over the op j position of th* operators’ trustee, Ezra Van Horn, a resolution which 'stated that the present welfare'fund (SeeCOAL, Page A-2J Laws Bans Primary ; By Democrats Monday: Unless ADA Is Listed ' Hearing Set for Friday; Order Applies Only to Central Committee i ] A temporary restraining order i was issued today by Chief Jus- < tice Bolitha J. Laws of District Court to prevent an election of < members of the District Demo- J cratic Central Committee on Monday unless six candidates , backed by the Americans for J Democratic Action are on the , ballot. ( The motion for the restraining 1 order was filed at noon by attor- ' neys for the ADA-backed group. ' Justice Laws set a hearing for Fri- i day.' This was the latest development in a series of moves and counter moves that raised uncertainty whether there will be a primary election Monday to elect District delegates to the Democratic National Convention and to the District Democratic Central Committee. The restraining order today ap plied only to membership on the , committee. The six candidates sup ported by the ADA group are Joseph L. Raugh, jr., Tilford Dudley, Mrs. Ernest K. Lindley, Benjamin S. Sigal, head of the ADA chapter here, James C. Turner, jr., business agent for an AFL Operating Engineers , Union local here, and Gerhard Van Arkel, former general counsel of the National Labor Relations Board. Court Prevents vote. District Court Judge T. Alan Goldsborough yesterday granted a temporary restraining order de signed to prevent the scheduled Monday vote. But, later in the day at the request of attorneys for the Democratic organization here, he; scheduled a hearing for Monday at 11:15 am. on a motion to dissolve the temporary restraining order. The Democratic Central Com mittee, which is fighting a move by four candidates backed by the liberal anti-Communist Americans for Democratic Action to gain a place on the local ballot, has sched uled the election for Monday from 4 to 8 p.m. Newspaper advertise ments yesterday carried this notice with locations of the six polling places. Statements Conflict. In the flurry of conflicting state-! ments, these are the latest: • The Democratic Central Commit tee announced it has retained Leslie ! C. Garnett and Samuel F. Beach to represent it in the court action. The committee said it feels that "representatives of the CIO-PAC and Americans for Democratic Ac tion would be representing not the I District of Columbia but the policies of an outside organization.’’ The statement added: | “The Democrats of Washington i further believe that people whose : first political loyalty is to organiza-i tions outside of the Democratic Party j obviously are not entitled to partici pate in our convention deliberations * See DEMOCRATS, Page~A-2.> I Your Gift—Their Camping Vacation Would Solve Troubles Of Boy, 12, Big Brother of Ten Walter cheerfully scrubbed the baby’s neck, keeping an eye on the other twin to be sure he didn’t toddle out of reach of the washpan. As he sloshed soap and water, the 12-year-old kept up a run ning sing-song: “You’re a dirty child, but soon you’re going to be clean. Walter is going to fix you up. Now, don't that water feel good?" He grabbed for the other twin, departing rapidly. The little fel low broke into a howl. “Can’t you keep those children quiet?” his father shouted. "My heart—all this noise!” Walter stripped the baby with j the skill of long practice and popped him into the tub. "They don’t like soap,” he apologized. I Walter’s mother came into the j room and sat down heavily. “That washing wore me out,” she sighed, “Walter, could?. Soon as I finish with the kids. I’ll hang it out,” he promised. ’’But, Ma, alter that can I go out and play ball? One of the fellows got a bat.” His mother stiffened. "You know I don’t want you to play in the street,” she said. ‘ I’ve told you a hundred times it isn’t safe.” The boy didn't protest. But his chatter to the babies ceased. He was thinking. “I sure would like to go some place where I could play ball,” he said finally. • "You could go to camp if we had the money,” his mother sighed. ‘‘If your father wasn’t ; sick . . "Sure, I know, "Walter said, and went on with his scrubbing. Walter doesn’t complain about taking care of the babies or hang ing out the wash or scrubbing the ’ floor. He knows his father would work if he could, and bear ing 10 children has worn his |, (See CAMPING, Page A-2.1 '( D. C. Supply Bill Heads for Final Congress Action Conferees Agree on $99,729,483; Revenue Measure Snarled By Don S. Warren BULLETIN Chairman Cain of the Dis trict Fiscal Subcommittee to day took the Senate floor to begin a determined fight for enactment of the 2 per cent sales tax which would be com bined with a revised income levy exempting incomes up to $8,000 here. He charged that failure of the revenue bill would force a 75-cent rise in the District property tax rate, if Congress passes pay raise bills. One part of the District's financial problem, the 1949 spending program, today was on its way to final Congressional action, but the revenue side of the picture was still in a snarl. House and Senate conferees on the budget for the new fiscal year compromised differences late yester day between the two bodies to rec ommend an outlay of $99,729,483. This reduces net Senate cuts to $1,435,500 from the House total, with restoration of a $161,500 previously slashed by the Senate. Quick House and Senate approval is expected to be given the plan to send the supply bill to the Whit* House before adjournment next Saturday. Pay Raises Not Figured. As the bill now shapes up, it pre sents a prospective deficit of about $160,000 by the end of next year, which might be absorbed adminis tratively. But a supplemental re quest for $150,000 to finance con tinuation of the child day-care centers now is expected and this would boost the immediate deficit to more than $300,000. None of these calculations, however, allows for the possibility of a last minute order by Congress of a Gov ernment pay raise, to be applied to classified city workers, along with collateral approval of pay boosts for District police, firemen or school teachers, which may shoot the 1949 District deficit up by $7,000,000. The new city revenue bill, though easily passed by the House, so far has been blocked by the Senate by objections by Senator Johnston, Democrat, of South Carolina, who opposes the sales tax provision. The South Carolinian said yesterday he was prepared to filibuster, if neces sary, to kill the House bill. Might Raise Realty Tax. Sponsors of the revenue bill warn that passage of the pay bills and failure of the tax measure might force a boost in the realty and per sonal property tax rate from $2 to $2.50 next month and to $3 a year from now. Anticipating increased budget de mands in the 1950 fiscal year. Chair man Bates of the House District Fiscal Subcommittee, forsees the possibility that a property owner who last year paid a realty and per sonal property tax bill of $1,000 would have to pay about $2,000 in 1950. The property tax burden this year was raised by about 30 per cent, including rate and asessment increases. Mr. Bates calculated the rest from a preview of a possible 1950 budget of well over $105,000,000. With pay raise legislation and the necessity of meeting obligations postponed by various means this year, he estimated the deficit for 1950 might run to $18,000,000. Psychiatric Item Scrapped. One decision of the conferees knocked out of the spending bill a Senate item of $30,000 for prepara tion of dans for a new psychiatric ward building at Gallinger Munici Dal Hospital. Left intact, however, were tunas for plans and construction of a combined pediatrics and crippled childrens building, under a con tract limit of $2,050,000, and a new laboratory building, with a cost limit of $478,000. House managers accepted a Sen ate provision reducing to the $9 per-day cost the charge against the District for city patients treated at Freedmen's Hospital. The House had allowed a much higher rate for Freedmen's. but the Senate insisted any deficit in operations there should not be laid on District taxpayers. Under the conference agreement, $150,000 was restored for sewer con struction projects lopped off the fund in the Senate, as was an item of $20,000 for equipment needed in the reconditioning Western High School. Minor items also were re stored for the operations of the offices of the Corporation Counsel, the Auditor, the Tax Collector and the Assessor. School Payroll Cut Stands. No change was made in decisions to cut school payroll funds by $100,000. which would mean drop ping 50 teaching positions. The conferees, however, are leaving the application of the cut to school of ficials, instead of specifying the saving must be made in the white schools. The conferees made no change in a cutback in the proposed enlarge ment of the police force but ac cepted a reduction from 207 to 157 in the number of extra men. The House managers accepted the Senate order for a $100,000 survey of school facilities and personnel. A formal report is to be submitted to the Congressional Appropriation Committees by next March 1. The conference group is recom mending the Senate item of $15,000 for purchase of sites for fire houses in the vicinity of Forty-ninth and East Capitol streets and Twenty fourth and Irving streets SJ1. Chairman Horan of the House Funds Subcommittee won his argu ment for language to strengthen the control of the District Auditor over city disbursement*. *