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Weatfttft1 Forecast page page Mostly sunny, witil ihowers likely this after- Amusements — B-24 Obituary .-A-4 noon and again tomorrow afternoon. Highest Church NewsA-8-9-1* Radio —. in Io» 90s. Fair tonight with lowest about 70. Comics .B-22-23 Real Estate —B-l-14 (Full report on Page A-2.) j Editorial . A-6 Society, Clubs... A-5 Midnight-79 6 a m-73 10 am-83 j Editorial Articles A-7 Sports —-A-ll 2 a.m_78 8 am.7« 11 a.m_85 | Lost and Found. A-3 Where to Go—-B-10 4 a.m.75 9 a.m_80 Noon-88 \ -----;-—-— IAn Associated Press Newspaper 96th Year. No. 178. Phone NA. 5000. ** WASHINGTON, D. Cm SATURDAY, JUNE 26, 1948—THIRTY-SIX___ — Dewey Selects Rep. Hugh Scott As Chairman Philadelphia Attorney Will Succeed Reece; In House 3 Terms By Gould Lincoln Star Staff Corr*spond«nt PHILADELPHIA, June 26.— Representative Hugh D. Scott, jr., of Pennsylvania was elected chairman of the Republican Na tional Committee today, thus becoming head of the national organization to conduct the campaign for the election of the Dewey-Warren ticket. He succeeds Carroll Reece of Tennessee. The selection of Mr. Scott was determined finally during a break fast meeting for a score of National Committee members given by J. Rus sel Sprague, committeeman from New York. The election itself followed at a meeting of the full committee at 11 a.m. Supporters Will Continue Work. The three New Yorkers who were leaders in the pre-convention cam paign of Gov. Dewey, Herbert Brownell, jr., Mr. Sprague and REPRESENTATIVE SCOTT, New Republican chairman. —AP Photo. Edwin F. Jaeckle, will continue to operate for Gov. Dewey in the com ing campaign. Gov. Dewey's aides announced that William" Murphy will be re tained as publicity director for the National Committee. Mr. Murphy, former Washington newspaperman, has served for two years under Mr. Reece. The naming of Mr. Scott, now serving his third term in the House, | accomplished at least two things. It gives Congress an important! political office to offset in some measure the nomination of two Governors to head the national ticket. It also may be considered a payment in part to Pennsylvania Republicans for the early support from a majority of that State dele gation for Gov. Dewey's nomination. Last night there was considerable discussion of the advisability of giv ing the chairmanship to a Midwest Republican. Among those mentioned were Harry Darby, Republican Na tional Committeeman from Kansas. Mr. Darby, however, said flatly he was unable to accept even if the chairmanship were offered to him. Scott Served in Navy Reserve. M?. Scott was commissioned a lieutenant in the Naval Reserve in 1940 and saw overseas service in Iceland and in the Pacific. He was with the 3d Amphibious Force as a lieutenant commander at the end of the war and drove the first Navy jeep into Tokyo after Japan's ca pitulation. In 1944, as a member of Congress, he went aboard a freighter carrying war supplies to England and then went to Normandy after the inva sion on a special assignment for the Navy. He is a member of the Aviation Subcommittee of the House Com merce Committee. The newly designated national rhairman is not a personal intimate of Gov. Dewey, but they are ac quainted. In 1946 Mr. Scott man aged the campaign of all six Re publican candidates for Congress in Philadelphia and all were elected-. Born November 11, 1900, in Fred ericksburg, Va„ Mr. Scott was grad uated from Randolph Macon Col ~ (See CONVENTION, Page A-3.) _ Russians Cite Dewey As Foe of New Deal By the Associated Press MOSCOW, June 26. —Morning newspapers gave readers their pic tures today of Republican nominees for the 1948 presidential campaign in the United States. Gov. Dewey, for President, was said to be "a strong opponent of Roosevelt's New Deal and always spoke out against progressive legis lation.” Gov. Warren, for Vice President, was described as a man whose can didacy "answers the demands of circles representing large capital” and who supports "the so-called two-party policy" embracing the Marshall Plan and Truman doc trine. Gov. Dewey's campaign was pic tured as "supported by rich New York interests including John Poster Dulles." TOKYO, June 26 <7P).—Leading Tokyo newspapers, in the first Japa nese editorial comment on the Re publican National Convention, said today that Gov. Dewey had stronger views on aid to China than the present administration. BOGOTA. Colombia, June 26 </P». —The newspaper 11 Tiempo says Latin American nations are not enthusiastic over the possibility of Gov. Dewey's becoming President. The paper said this prospect was viewed “without enthusiasm, if not with misgivings.” It added the Re publican nominee "has never spoken about the Good Neighbor Policy." AFL Never Will Support Dewey, Green Say s After Seeing Truman 'New Yorker Is 'Weak From Running Too Much/ He Declares By Joseph A. Fox William Green, president* of the American Federation of Labor, said after a White House call today that the AFL “never” would support the Dewey-Warren Republican presidential ticket. He said the workers are not satis fied with Gov. Dewey’s labor record and that he himself thought the New York Governor “is weak from running too much.” Asked if he thought the Demo crats could beat the Republicans. Mr. Green chuckled and said that in that connection “you have to consider the Republican auxiliary, which is Wallace.” He referred to Henry A. Wallace, third party can didate. The AFL head responded with a vigorous "Never” when asked if the AFL political arm—the League for Political Education—would support Gov. Dewey. He added: “I don't think the Republicans will get much support from labor, either on their platform or on their convention.” WILLIAM GREEN. Mr. Green said the Philadelphia convention "could have picked a stronger ticket.” He said he based his belief on the Republican platform and on Dewey's record as Governor of New York. Mr. Green did not state that AFL i See GREEN. Page A-2.) ~ Dewey Off for Farm; Warrens to Take In New York Shows Delegates Head Home With Best Prospect for Victory in 20 Years By J. A. O'Leary Star Staff Correspondent PHILADELPHIA, June 26 — Gov. Dewey plans to leave here this afternoon for a quiet week end on his farm at Pawling. N. Y., after getting the new Re publican National Committee off to an early start on the 1948 campaign in which he will carry the G. O. P. standard. His running mate, Gov. Warren of California, will take his wife and three daughters to New York to see one or two shows before heading West. Hundreds of rank-and-file Re publicans headed for the four corners of the Nation with brighter pro spects for victory in November than they have had in 20 years. The G. O. P. goes into battle this year with a history-making team. Gov. Dewey is the first man who ever won a second chance from the Republican Party after losing his first bid for the presidency. Gov. Warren is the first Californian to be nominated for the governorship of that State on both the Republican and Democratic tickets. Would Emphasize Warren’s Job. Here are the high lights of Gov. Dewey’s first press conference yes terday following his nomination: He sees no need for a special ses sion of Congress this summer. If elected, he intends to lift Gov. Warren out of the obscurity which usually envelops a Vice President. The New Yorker said he not only plans to treat Gov. Warren as a member of his cabinet, but would hope to take advantage of the Californian's administrative experi ence to help reorganize the Federal Government. Gov. Dewey favors the handling of foreign affairs through time honored diplomatic channels, rather than by personal diplomacy. Hits ‘Personal Diplomacy'. This statement on foreign poliev came when a correspondent asked him. "Governor, do you think you can handle Joe Stalin?" Without hesitation Gov. Dewey replied that If this Government re turns to the conduct of foreign affairs through ordinary diplomatic channels, instead of pursuing a *< See O LEARY, Page" A-3.» ~ New Mexico Judge Retires; Hatch Likely to Get Post The White House today announced the retirement of Federal Judge Colin Nebiett of the district of New Mexico—a move that is expected to pave the way fdr the appointment of Senator Hatch, Democrat, of New Mexico, to the judiciary. Judge Nebiett, who will be 73 on July 6, was a Wilson appointee. His district embraces the entire State of New Mexico. The appointment of Senator Hatch to succeed him is expected in view of the fact that the Senator, in deciding not to seek re-election this year, expressed hope of getting a judicial appointment. He is a long time friend of President Truman. Taft Back for Brief Stay, Plans Long Rest in Canada Senator Taft, Republican, of Ohio returned to the Capitol today to “clean up a little work before start ing out on a Canadian vacation.” Senator Taft said he will stay in Washington through next week out lining work to be done during Con gress' recess. He said this will in volve principally the Senate's Labor and Finance Committees. Senator Taft will go to his home in Cincinnati on July 4 for a week. Then he will go to Murray Bay in Canada for a six weeks' rest. The I Ohioan said he has no "long-range” | political plans. 3 Navy Flyers Missing After Crash Off Norfolk By tht Associated Press NORFOLK, Va„ June 26.—Three Navy flyers were missing and pre sumed lost today following the re ported crash of a torpedo bomber last night about 20 miles east of Chesapeake Lightship. The crash w-as reported to 5th Naval District headquarters here by an accompanying plane during a routine flight. 1 • Israel Plans to Push Convoy Through After U. N. Gives Approval 'Suitable' Action Ordered Against Egyptians Who Halted Supply Unit By the Associated Press CAIRO. June 26.—The Israeli government, given the United Nations green light to push a convoy through Egyptian resist ance, says it has told its gen eral staff to take “suitable” ac tion. Its announcement was made in Tel Aviv last night after a U. N. spokesman and Jewish leaders said the Egyptians early yesterday stopped a Jewish supply convoy bound for Negeb Desert settlements in Southern Palestine and shot at a white U. N. truce-mission plane piloted by an American. Given Freedom to Act. The communique said the Israeli government wiK take action "in a manner and at a time and plac# which its general staff will deem suitable.” Jewish authorities were told by the U. N. truce mission yes terday they were "free to act as they thought fit” in the matter. Egyptian Premier Mahmoud Pahmy Nokrashy Pasha told news men in Cairo last night that his government will reply today to pro tests on both incidents submitted by Count Polke Bernadotte, U. N. mediator. Mr. Nokrashy Pasha said an Egyptian pilot fired on the U. N. aircraft because “he suspected It was an enemy plane.” An Israeli army communique said Egyptian troops attacked the iso lated Jewish town of Kfar Darom in Southern Palestine during the night with small-arms fire. No de tails were given. Kfar Darom is in the coastal strip assigned to the Arabs under the United Nations petition plan and is near the Egyptian base in the Gaza area Reports Held Erroneous. Of the convoy stoppage, the Egyptian Premier declared. “The Egyptian government never thought this would be construed as a viola tion of the truce." The Israel government said last night its earlier reports that Egyptian Spitfires had bombed the Jewish settlements of Beer Tuvva and Kefar Warburg yesterday were erroneous. Jewish Army headquarters in Haifa said about the same time that Jews had clashed with Arab units at El Birwa, inflicting 100 casualties. Fighting has been going on for two days in the village, 7 miles east of Haifp. U. N. truce observers are investigating. The pilot of the strafed U. N. Diane was Lt. Col. M. L. Martin of Bluefield, W. Va. Mr. Nokrashv Pasha asserted the plane had been flying at 500 feet, while it had been agreed that U. N. aircraft would not fly over Egyptian territory at less than 2,000 feet. This aroused the Egyptian pilot's sus picions, he said. A U. N. spokesman in Tel Aviv said the plane w-as shot at while about to land. The Premier said of the convoy protest: “Egyptian authorities informed truce officials in the evening of June 23 that they did not agree to grant ing the convoy permission to pass through. The Egyptian government never thought this would be con strued as a violation of the truce.” Other happenings last night in the Palestine situation: An Israeli communique issued in Tel Aviv said 72 men had been re < See'PALESTINE, Page~A^2.' Chinese Reds Attack Port And Railway to Tientsin By the Associated Press SHANGHAI, June 26.—Chinese Communist troops knifing south ward out of Manchuria today were reported attacking one North China port and the railway which links it to Tientsin and Peiping. Government headquarters at Peiping said the port, Chinwangtao. was under fierece attack with a number of other towns along the railway leading southwest to Tientsin. A dispatch to a Shanghai news paper said the Red assault on Chingwangtao—a major landing point for government reinforce ments—was “reduced.” This term was not amplified, but the same dispatch said the center of fighting had shifted to the beach resort town of Pehtaiho, 18 miles to the south. i Britain Charges Russians Create Siege in Berlin Stresses Intention to Stay in City; Land Blockade Continues i •y tht Associated Pftss BERLIN, June 26.—The Rus sians’ land blockade of Berlin continued today, and Britain ac cused the Soviet Union of trying ruthlessly to create a state of siege. With the Western powers in con sultation over their next step, the British Foreign Office said the Soviet campaign, “by starving the helpless civilian population” of Ber lin, seeks to gain political advantage at the expense of the West. The statement added: "We intend to stay in Berlin.” Backs Clay Statement. This backed up an earlier state ment by Gen. Lucius D. Clay, Amer ican military governor, that no action short of war could drive the Americans from Berlin. The British commander in Ger many, Gen. Sir Brian Robertson, demanded today that the Russians lift their blockade. Otherwise, he said, the Russian.^ must take the blame for German suffering. Gen. Robertson sent a letter to his Soviet counterpart, Marshal Vassily D. Sokolovsky, saying: “The interruption of essential freight cannot be .ield to be a meas ure necessary to protect the cur rency position of the Soviet zone." Convert Marks at 10 to 1. The Berlin blockade coincides with the Western power currency reform, and efforts by 7 . sia and the Western powers to put their own brands of currency in circula tion here. Money black markets were offer ing up to 25 Russian marks for one Western mark in the Western sec tors of Berlin today; until last week the marks Issued on both sides of the occupation line had equal value. As another angle of the Western zones’ current reform, Germans there were told they will get back one new Deutsche mark for 10 old reichsmarks. This will be the con version rate for an unspecified number of marks after 60 old marks have been traded in for Deutsche marks on a one-for-one basis. No rate was set for international exchange, but the indicated goal is a mark valued at 30 cents. Present foreign exchange transactions are calculated at the 30-cent rate. Statement From Berlin. The British statement on Berlin, Issued in London, said: "Attention has been called to a report in Taegllche Rundschau (official Soviet paper in Berlin*, which presumes to define the atti tude of his majesty’s government to recent events in Berlin. "The report is completely untrue and is very far from representing his majesty’s government’s real attitude. "The statement that we intend to stay in Berlin holds true. "The opinion of the whole world will condemn this ruthless attempt of the Soviet government to create a state of siege in Berlin and so. by starving the helpless civilian population, to secure political ad vantages at the expense of the other Allied powers." The Taegliche Rundschau had quoted British circles as saying Brit ain is considering methods of get ting out of Berlin. American Ambassador Lewis W. Douglas called on Foreign Secretary Bevin in London for consultations on the tense situation. Easing of Embargo Denied. An official American spokesman at military headquarters here said there has been no word from any source of Russian plans to lift their land embargo against shipments to Berlin. American authorities started fly ing drugs into the city to fight the squeeze, which took the form of a rail freight blockade and a cessa tion of food and brown coal sup plies from the surrounding Russian zone. The Americans also announced plans to fly in powdered and con densed milk for German babies. Supplies of fresh milk have been shut off with other food supplies for some 2,000,000 Berliners in the city's western sectors. A barge was reiKHted to nave arrived from West ern Germany with grain and flour today, but there was no sign of a letup of the land embargo. Details of Money Exchange. The Allied announcement on money exchange said half the con verted Deutsche marks will be cred ited to a "free Deutsche mark ac count” for immediate use. How many will be converted is not yet ( See GERMANY, Page A-2.) High of 90 Forecast Today, Tomorrow A hot and sticky week end with 90-degree maximum® today and to morrow was predicted by the Weather Bureau today. Showers are likely this afternoon and again tomorrow afternoon the bureau said, but they are expected to reduce temperatures only tem porarily. Yesterday's high was 90-degrees at 4:20 p.m. IVo persons treated for heat pros tration were Mrs. Dorothy Dorst, 27, of 23 Second street N.E., who col lapsed at Fourth and C streets S.W., and John Gaither, colored, 38, of 1240 Columbia road N.W., who was treated at Freedmen s Hospital after he became ill on the street near his home. Mrs. Dorst was treated at a nearby doctor’s office. The Weather Bureau said it did not expect a return of the 95-degree temperature of last Thursday. Potomac Electric Power Co. work men last night completed restoration of service disrupted in some sections by the storm Thursday night. i "But there is neither East norWsst, Border, nor Breed, nor Birth, When two strong men stand face . to face, though they come from V, the ends of the earth? t . . j i ' » Russell Sheets Tops Fast Field In First Heats of Soap Box Derby Contender in Other Years Clocked at 31.4; Three Tie for Second Before Hour Recess The electric eye at the “Derby Downs” finish line early this I Afternoon showed a Washington and Lee High School freshman had piloted his gravity-powered racer to the fastest speed thus far in the 7th#annual running of the Washington Soap Box Derby. In the lead with a swift 31.4-second race registered in the 15th prelimi nary class “A’’ heat was Russell Sheets, 14, of 919 North Daniel street, Arlington. Last year, young Sheets lost out in the third heat to Winner David Icenhower and in 1946 he won two heats. Meanwhile, a triple tie for the second best time intensified interest in the runoffs that will follow this afternoon. Witn times of 31.6 sec onds in their class “A” heats were: William L. King, 16, of 1800 Branch avenue S.E.; Matthew H. Borning, 14. of 7723 Eastern avenue, and Curtis Truman Sales, jr., 15. of 4810 Edmonston avenue, Hyattsville, Md. Eddie Diehl. 13, of 3610 Lee bou levard, Arlington, winner iof last year's Class "B” race and a pre Derby favorite, won the first heat of the day, but trailed leaders with a time of 32.1 seconds. The new 1948 city champion of the race, sponsored jointly by The Star and the District Department of the American Legion in co-opera tion with Chevrolet, won’t be decided until late this afternoon after more than 150 contestants pilot their cars down the slope. The morning races were marked by a number of accidents, but none of the youthful drivers was seriously hurt. After running 20 preliminary heats, the races were recessed at 12:30, to be resumed an hour later. The derby track is on Pennsyl vania avenue between Branch and Alabama avenues S.E. The starting point is at Texas avenue and the finish line is near Carpenter street. David Noon, 13, of 2302 Cheverly avenue, Cheverly, lost out when his car swerved out of control in an early heat, losing a rear wheel when the midget racer smashed against a curb. David’s brother, John, 11, also had an accident when the axle of his ~See DERBY. Page A-12J Food Workers Strike Throughout Italy on Order of Communists 250,000 Called From Jobs; Walkouts Still Spreading In Other Industries By the Associated Press ROME, June 26.—A nation wide Communist - directed food workers’ strike began today. More than 250,000 men were called from their jobs by the General Con-1 federation of Labor. Italy's massive union, still under Communist con trol. There were no reports yet of the strike's effectiveness, but most, if; not all commercial stores and mar-j kets were still open. Presumably they will not be affected until their stocks run out. • The strike was called among work ers making spaghetti, flour, bread, ice, pastries, dried and condensed milk and packaged foods. The strike grew out of walkout by workers in Milan nearly a month ago. They struck in protest against the layoff of 150 employes. Elsewhere in Italy strikes con tinued to spread. Premier Alcide de Gasperi's government met yes terday to consider the crisis. Negotiations to settle the nation wide strike continued in Rome to day between the confederation and Labor Ministry officials. Hopes were ! held that the walkout could be ended before a slackening of stocks ! brought hardship to Italian con sumers. 20 Injured in Explosions Al Louisville Oil Plant By the Associated Press LOUISVILLE, Ky„ June 26—An estimated 20 persons were injured j today when 23 gasoline storage tanks exploded in a series of blasts at the Aetna Oil Co. plant here. Company officials and police esti mated damages may run to $500,000. E. Eugene Van Buren, refinery, manager, said the blaze may con tinue for a day or two. Little more damage is expected. Cause of the explosions was not determined immediately. Burmese Retake Town From Red Insurgents By th* Associated Press RANGOON, Burma, June 26 — The Burmese government said today its troops recaptured Waw, about 100 miles from here on the road to Mandalay, from Communist in surgents. News dispatches said the Com munists seized the town on Wednes day. A government communique said it was retaken the following day. The bulletin made no mention of casualties. Guerrilla Attack Cuts Main Supply Road for Greek Army's Drive Rebel Casualties Put at 16 Killed; 5 Villages Are Reported Looted By th* Associated Press ATHENS, June 26.—A heavy guerrilla attack has destroyed part of a main supply road for Greek Army troops pressing a campaign against the guerrillas* in Northwest Greece, a general staff communique said today. The Communist-led forces wrecked a part of the road between Elasson, and Kozane, present headquarters of; the 2d Army Corps, the communique said. Guerrilla casualties in the. fierce fighting were given as 16 j killed, while the army lost 11 killed and 20 wounded and missing. The road serves as a connecting link between the 2nd Army Corps’ supply base at Larisa and the Kozane headquarters. It passes through a valley flanked by Mount Pierria and Mount Kamvounia, guerrilla hangouts the past two years. Five Villages Looted. Five villages were reported at tacked and looted near Elasson. The communique said fighting con tinued around Nestorion and north west of Grevena in the campaign to push the guerrillas out of the Gram mos Mountains. Guerrilla losses (See GREECE, frage A-2.) MacArthur Men Expect 2 More Years in Orient By the Associated Press TOKYO, June 26—Gen. Mac-( Arthur’s headquarters is counting on at least two more years here. Seventeen military and civilian officials left by plane for Washing ton today to present budget needs for the fiscal year 1950. They'll seek funds fof two big items: Army and Air Force expenses in the Far East command, which also includes the Philippines, and American relief money for occupied Japan and South Korea. Details were closely guarded. National Guard Here Continues Recruiting Despite Army Order Gen. Cox Says Directive Has Not Been Received; Reports 'Normal Rate' The District National Guard is continuing to accept voluntary recruits despite an order from Secretary of the Army Royall that enlistments be stopped im mediately. Mr. Royall wired all National Guard adjutants general yesterday to halt recruiting when their units have exceeded established quotas. He explained that there isn’t enough money to pay more men and said Congress would not favor extra ap propriations. The order had not been received by the District Guard, Brig. Gen. Albert L. Cox, commander, said to day, and he added that voluntary recruiting here was continuing at “the normal rate.” That rate, he explained, would just about meet the "regular rate of attrition which you always have in an organization of more than 2,600 men.” Law Signed Thursday. v Under the provisions of the draft law signed by President Truman Thursday, men of draft age who were not in the Guard or other organized reserves by Thursday mid night are subject to the call for military service. Therefore, the present recruiting efforts of the local Guard provided no haven for men who come under the provisions of the new law. Gen. Cox admitted that the heavy influx of men 19 through 25 anxious to get in the Guard before the new draft law became effective had swelled its ranks to a point where the total exceeded the overall authorized strength of 2,633 by be tween 80 and 90 men. Ground units, with a 1,613 quota, had 1.948 men. Air units, limited to 1.020 men. were not up to par, however. Policies Being Co-ordinated. Meanwhile, military leaders at the Pentagon began to co-ordinate pol icies under the new draft law. Sec retary of Defense Forrestal, who ap pointed a seven-man Selective Serv ice Advisory Committee to work out many details, said he might have a statement next week, and Mr. Roy all scheduled a news conference for 10:30 am. Monday, at which most of those details were expected to be divulged. Representatives of the Air Force, Navy and selective service were to attend Mr. Royall’s conference and then the men who must register un der the law likely toould be able to figure more closely the date that they might be called under the new age sequence draft system. Shanghai Suffers as Yuan Fails to 5 Million to $1 By Associated Press SHANGHAI, June 26—Shanghai was in the midst of a general col lapse of currency values today. At one time this morning the Chi nese yuan dropped to a new low of 5,000,000 to $1 <U. S.i. The official rate is 474,000 to $1. The collapse was blamed to civil war reverses and continued flooding of printing press money by the gov ernment, which can't come within 80 per cent of balancing its budget. The price of rice climbed to a peak of 20,000 000 yuan per 165 pound picul from yesterday's 17, 000.000. A serious situation appeared ahead Monday when the municipal cost of living index will be issued. Most Shanghai prices are based on it. ___ Important Notice Effective next Monday, June 28, the new telephone num ber for THE STAR will be STERLING 5000. Telephone traffic at THE STAR has increased to a point which demands additional trunk lines to provide prompt and efficient service to customers. These trunk lines are available immediately on the new STerling exchange. • So, to call The 8tar for any reason - remember STERLING 5000. A Steel Interests Due to Accept Coal Pact Soon Pay Boost for Mill Workers Is Expected To Follow Signing By James Y. Newton The holdout steel industry is ; expected to follow the lead of the rest of the Nation’s soft coal producers soon and sign the new Upited Mine Workers’ contract providing higher wages and more welfare nfoney for the 400,000 ;soft coal miners. This is expected to be followed by a wage increase to the hundreds of thousands of steel mill workers, members of the CIO United Steel Workers’ Union. The industry, led by the United States Steel Corp., re fused the CIO's demand last spring for higher pay. Any new wage in crease probably would follow the pattern set in other big industries, a pay boost of from 11 to 14 cents an hour. Although the big producers of steel held out on the contract sign ing yesterday, their move was de scribed as only a gesture and indus try sources said the steelmakers would capitulate within a few days. Steel Workers Denied Raise. The refusal last spring of a pay raise to the mill employes of the industry was given as the reason why the steel producers did not Fact-Finders Notify Truman Coal Pact Averts Emergency By the Associated Press The coal fact-finding board today notified President Tru man that the threat of a "na tional emergency" bitumious shutdown has been averted by John L. Lewis' agreement with Independent mining operators. The board of inquiry, created under the Taft-Hartley Act, filed a bulky report which proved an anticlimax in the light of the wage settlement reached yesterday. The board indicated clearly it did not consider a major crisis the refusal of the steel controlled "captive” mining companies to accept the con tract. want to be in the position of giving in easily to John L. Lewis’ demands. Mr. Lewis won one of the best contracts he has received in years from the coal operators, an agree ment which was worked out In lit tle more than 40 hours of actual bargaining here. The finishing touches were put to the agreement, which takes effect July 1. at a Stat ler Hotel conference yesterday after noon. Thus the basic coal industry seems assured of another year of peace. It was the first time since 1941 that Mr. Lewis and the operators had reached an agreement without a strike or Government intervention. There were only two major changes made in the contract under which the mining industry is op erating. These provided an increase of $1 per day, boosting to $14.05 the daily wages of the average miner and the doubling of the “royalty” which support the UMW welfare and retirement fund. The operators agreed tojjay into the fund 20 cents per ton on all coal produced which will bring in an estimated $100, 000,000 annually. Howard D. Gibbs, executive direc tor of the Pittsburgh Retail Coal Association, estimated that the new pact will boost retail coal prices 75 cents to $1 a ton. Other estimates placed the price jump at about 40 cents. Hits Union Shop Provision. The steel industry, producers of about 60.000,000 tons of coal per year, or 10 per cent of .the national total, balked at signing the coal contract at the last minute. Harry M. Moses, head of United States Steel coal and coke subsidi aries and negotiator for all of the “captive” steel company - owned mines, said he refused to sign the contract because it violated the Taft-Hartley Act. He pointed out that the new con tract retained the union-shop pro vision of the present agreement. The labor relations law makes the union shop illegal unless a major ity of the employes in a particular industry vote for it in a special election conducted by the National Labor Relations Board. However, the NLRB cannot initiate com plaints and Mr. Lewis' union-shop clause will not be questioned unless some mine worker or employer brings a charge against the union. “The Taft-Hartley Act expressly states," Mr. Moses said in a state ment, “that it shall be an unfair labor practice for an employer to < See COAL, Page A-2.) 20,000,000 Lose Homes In South China Floods By th« Associated Press NANKING, June 26.— Summer floods in nine South China prov inces have left at least 20,000,000 Chinese homeless and inundated more than 2,000,000 acres of farm land, the Ministry of Agriculture and Forestry reported today. A spokesman termed crop losses “alarming.” Added to cuts in pro duction due to the civil war, he said, it may produce famine conditions over large areas of China. In Hunan Province alone officials estimated flood waters lowered rice yields by 50.000,000 piculs <1 picul: 133 pounds). There, too, 8,000,000 farmers were driven from their homes and 312,000 acres of the Na tion’s best farmland suffered dam age. Wuhu, center of Anhwei Prov ince’s wheat-rice producing area, reported loss of at least 12,000,000 piculs of wheat. Crops of wheat, rice and beans were "totally de stroyed” in five districts.