Evening star. [volume], June 26, 1948, Image 1

About Evening star. [volume] (Washington, D.C.) 1854-1972

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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.