Evening star. [volume], July 07, 1948, Image 1

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

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Reds Bare Plan
To Tie Berlin
To Soviet Zone
German Communists
Draft Constitution
For Own Republic
By tbt Associated Press
BERLIN, July 7.—The Com
munists announced today a two
year plan to tie Berlin econom
ically to the Soviet occupation
zone of Germany. They warned
Berliners not to pin their hopes
for the future on the Western air
bridge over the Soviet blockade.
The Communists also announced
they are drawing up a constitution
for a German republic—their an
swer to the projected Western Ger
many constitutional assembly.
At the same time the United
States Air Force attacked the grow
ing fuel shortage in blockaded
Western Berlin, which in 19 days
has cut factory operations 40 per
cent. The first "flying coalman’’
winged into Berlin shortly after
noon with 110 bags of coal. The
Americans began the operation in
the face of a veiled Russian warn
ing on the safety of their air bridge
planes.
Aims to Spur Production.
The Communist - dominated So
cialist Unity Party <SEDi an
nounced in the Soviet sector:
“Starting from the fact that Ber
Starvation Threatens
70 Seeing Eye Dogs
In Berlin Blockade
By the Associated Press
BERLIN. July 7.—The Russian
blockade of Berlin threatens 70
seeing eye dogs with starvation,
the newspaper Tagesspiegel said
today.
The report said 28.000 thor
oughbred dogs also are in dan
ger because of new Russian
orders forbidding the export of
meat and food from the Russian
zone to Western sector dogs.
The Russians also forbade the
city government to issue dog
ration cards to owners in the
Western sector.
The newspaper said the seeing
eye dogs, which lead the blind,
and the others can live only if
their food is flown in from the
west.
lin lies in the Eastern zone and is
tied very closely to its economy, the
Berlin unit of the SED has worked
out a two-year plaiy aimed at syste
matically incorporating Berlin's
economy into that of the Eastern
zone."
One aim. it said, is standardizing
products and spurring production.
Discussing this latest phase of the
east-west battle for the German
capital, the Soviet-licensed Berliner
Zeitung said:
“If Berlin wants to live it has only
one possibility at the moment-con
nection with the economic plan for
the eastern zone. Berliners should
seriously consider which is wiser: To
build the future of Berlin on the
swaying pillars of the air bridge or
on a long-term plan."
25 C-54s to Carry Coal.
The Americans arranged to send
25 C-54s with sacks of coal from
Frankfurt to the western sectors of
Berlin this afternoon. Each plane
can handle seven tons of cargo.
Heretofore the planes concentrated
on building up food supplies. West
ern Berlin, meanwhile, further
curbed streetcars as a fuel conserva
tion measure.
The scope of the air lift is indi
cated by United States Air Force
figures on the 18 hours from 4 p.m.
yesterday to 10 a in. today, when
115 flights brought 610 tons of food
into the city.
After a night of good weather
heavy rains once again complicated
the job. One plane limped in on a
single motor, but no other incidents
were reported either by British or
American flyers.
The warning on the planes' safety
came in a dispatch of the Soviet
licensed news agency ADN. reporting
a June 30 American request for a
change in procedure at their Berlin
air safety center. The Russians re
plied, the agpncy said, that Ameri
cans are violating four-power rules
for air traffic control and warned
that American authorities must take
“full responsibility for the safety of
American planes."
/l|jirr ami ■ «u \ uami'ci a,
The Soviet - sponsored German
People’s Congress of Eastern Ger
many announced the plan to draw
up a new' constitution which it said
would have official character. It
said committees would present a
draft to the congress.
A constitutional committee
reached agreement, the announce
ment said, that "Germany is an
Indivisible republic made up of
states and that executive power
stems from the people." Agreement
also was reached in principle on
two chambers, including a lower
house of representatives from state
parliaments.
The development brought nearer
the day when Germany will have
two constitutions and two govern
ments—unless the Big Four breaks
the stalemate on the German prob
lem.
The first flying coal car to reach
Berlin was piloted by Capt. Louis
W. Baker of Allentown. Pa. He
made the trip from Frankfurt in
90 minutes. German workers were
i See BERLIN, Page A-6.t
President Won't Hold
News Parley This Week
President Truman will not hold a
news conference this week. Press
Secretary Charles G. Ross said today.
Mr. Ross explained that the Pres
ident has quite a bit of work on his
desk, although he has cleared up
the accumulation of bills left by
Congress. He added that Mr. Tru
. man had pretty well covered every
thing with reporters at last week's
conference. j
Truman Aides Take Steps to Bar
Gallery Stampede at Convention
Biffle Says 80 Policemen, 50 Detectives
Will Prevent 'Influencing' of Delegates
Backers of President Truman,
pleased with the collapse of the
boom for Gen. Eisenhower, were
taking steps today to block any
gallery attempts to start a nomi
nation stampede for the general
or any other candidate at next
week's Democratic convention.
Leslie L. Biffle. convention ser
geant at arms and close.friend of
President Truman, announced in
Philadelphia that 80 policemen and
about 50 private detectives will be
on hand to keep the gallery spec
tators from seeking to influence
delegates in their choice of a presi
dential nominee.
Mr. Biffle said he had heard that
an effort will be made to stampede
the convention, the Associated Press
reported. It was recalled that
packed galleries chanting “We Want
Willkie" were credited with helping
bring about the nomination of the
late Wendell L. Willkie in 1940.
Mr. Biffle refused to say whether
backers of Gen. Eisenhower were
involved. However, no effort in be
half of other presidential prospects
has reached boom proportions.
Meanwhile. President Truman
was back in the Capital today, view
ing with some satisfaction the col
lapse of the Eisenhower boom and
turning his thoughts to the choice
of a running mate.
The White House said Mr. Tru
man has made no arrangements to
attend the Democratic National
Convention opening Monday in
Philadelphia.
“The President has not yet said
he is going," Press Secretary Charles
G. Ross told reporters who asked
him about Mr. Truman's plans.
In recent years it has become cus
tomary for presidential nominees to
visit the convention and make an
acceptance speech.
Mr. Truman returned by special
train at 9:35 o'clock last night from
the Bolivar statue dedication at
Bolivar. Mo., after learning on the
return trip that, Gen. Eisenhower
had declared himself out of the
Democrats' family difficulties. The
President had been expecting a dis
claimer of the sort, but he would
not discuss it with newspapermen.
And once the issue had been re
solved, Mr. Truman and his aides
began to given serious thought to
— i See DEMOCRATS7 Page A-5.)—
Yugoslavia Accepts
Request to Summon
Parley on Danube
Ten Countries to Attend
Waterway Conference
In Belgrade July 30
By the Associated Press
LONDON, July 7—Yugoslavia
today accepted a four-power re
quest to call a 10-country confer
ence in Belgrade July 30 on fu
ture control of the Danube, the
most important inland waterway
in Europe. The United States.
Russia, Britain and France asked
Yugoslavia in notes yesterday to
call the rpeeting.
Tne Yugoslav' decision to call the
Danubian conference was disclosed
in a government announcement re
ported here by Tanjug, the official
Yugoslav news agency.
The meeting will bring together
representatives of the Big Four
powers—the United States. Britain.
Fiance and Russia — and the
Danube neighbors. They are Bul
garia, Hungary. Romania, Yugo
slavia, Czechoslovakia and Aus
tria.
In announcing readiness to serve
as host for the meeting Marshal
Tito's government assigned to Aus
tria only an observer's role with an
"advisory note." This w’as in line
with a demand from Russia.
The task of the conference is to
work out a new' agreement on free
dom of Danube shipping for the
nations which have ports on the
river.
Russians Reject Bid.
Meanwhile. Marshal Tito's party
suffered a setback when Russian
Communists refused to participate
in a Yugoslav Communist congress
because Tito and his followers have
Motorized Russian
Troops Reported on
Move in Romania
By the Associated Press
MTLAN. Italy. July 7.—II
Corriere Lombardo printed an
unconfirmed dispatch today
saving Russian motorized troops
have made important moves
in Romania since Monday.
The dispatch, from the Trieste
free territory, was attributed
to "unconfirmed reports" reach
ing American. British and Yu
goslav occupation forces. It
said the Russian troops "would
go into action immediately be
fore or after the Yugoslav Com
munist congress opens July 21
in Belgrade."
The dispatch caused stock
market prices to decline.
Dlaced themselves "outside the fam
ily of Communist parties."
The Soviet news agency Tass and
the Moscow radio announced the
blunt Russian rejection of the Yu
goslav invitation. The congress is
scheduled to open in Belgrade
July 21.
The announcement seemed to
underline the approval Russian
Communists have given to the Com
inform’s condemnation of Tito and
his lieutenants. Apparently the
appeal of Yugoslav Communists to
Prime Minister Stalin, over the head
of the Cominform. also has failed
Nor was this the only jolt received
by Tito's Communists. Tass said
Albania has defied Belgrade's warn
ings that she must resume economic
(See YUGOSLAV." Page_A~-5j
Blast on Lake Tanker
Injures Seven Crewmen
i
By th« Associated Press
LUDINGTON. Mich., July 7—A
Coast Guard plane rescued seven
injured men from the crippled tank
er Edgewater today after an ex
plosion and fire in Lake Michigan.
Crewmen still aboard ship radioed
to’ rescue craft that the blaze had
been brought under control and
that they were not endangered by
the small fires still burning.
Coast Guard repotts indicated
five of the seven injured men were
burned badly. The other two were
reported to have suffered fractures.
Tire PBY which picked them up
took off immediately for Chicago.
Comdr. Richard Mellen of the tra
verse city Coast Guard station said
they would be taken to the Marine:
Hospital in Chicago.
The old-laden ship, owned by the
Cleveland Tanker Co., was rocked j
by g blast when it was 10 miles
off Point Sable, about 23 miles
•outhwest of Ludington.
Farm Leader Presses
Democrats to Pledge
Fight on High Prices
Federation Official Urges
> That Congress Set Up
Monetary Commission
• By the Associated Press
PHILADELPHIA. July 7.—The
American Farm Bureau Federa
tion asked the Democratic Party
today to pledge a new govern
mental attack on the problem of
skyrocketing prices.
Opening hearings on the 1948
Democratic platform. H. E. Slusher.
a member of the board of the power
ful farm organization, proposed
specifically that Congress set-up a
National Monetary Commission to
find ways of stabilizing prices.
"A democracy of free enterprise
cannot flourish and may not even
survive continuing fluctuation of the
general price level.” Mr. Slusher
said. He is president of the F'arm
Bureau in President Truman's home
State of Missouri.
Democrats Blame Congress.
Thus the farm leader brought
up an issue with which Democrats
hope to win votes in November.
Mr. Truman and other Democratic
leaders have blamed the Republican
Congress for swelling prices since
wartime controls were dropped.
The Democratic platform drafters
got off to a quiet, friendly start.
But beneath it was an air of expec
tancy of bitter battles to fdllow over
the writlhg of civil rights and labor
planks.
Senator Myers of Pennsylvania,
chairman of the 18-member Draft
ing Committee, told newsmen Mr.
Truman undoubtedly will be con
sulted on the document before it is
presented to the party's convention
next week.
‘‘I think he should be consulted
before the platform is presented
formally to the convention.'' Senator
Myers added.
Want to avow rigni.
The Pennsylvanian said the plat
form writers "quite naturally would
like to avoid a convention floor fight
on the platform. We are aiming at
unanimous approval without com
promising on issues.”
Another early witness — Morris
Sayre, representing the National
Association of Manufacturers —
touched on the International situa
tion. He urged a plank pledging
United States' co-operation with
other peoples to maintain "peace
and human freedom.”
On domestic issues, Mr. Sayre
objected to peacetime Government
controls, either direct or indirect,
over "wages, prices, production, dis
tribution or consumption.”
He also urged overhauling of tax
laws to increase volume of invest-1
ment funds. He said money's needed
to spur greater industrial production.
Foreign Plank Appears Easy.
Easy agreements on planks touch
ing on the international scene were
forecast by Senator Myers, who is
chairman of a 104-member Resolu-1
tions Committee.
Senator Myers said it appeared
certain Democrats will advocate >1) ;
a "strong" international policy and
(21 a powerful National defense to
back up that policy.
The fireworks on civil rights and
labor was set for tomorrow and Fri
day. Today's work—in the hands
(See PLATFORM. Page A-o.'
Top of 80 Seen Today
As Winds Ease Hea!
Cooler weather and brisk norther
ly winds brought relief here today
from a week of near-record heat.
The Weather Bureau predicted
that the mercury would not rise
over 80 today with a low of about
62 tonight. Tomorrow is expected
to be sunny and cool with low hu
midity.
Two families were homeless to
day and nearly 20 others were driven
into a drenching rain late yester
day afternoon when a bolt of light
ning set fire to dwellings in the
Henry G. Shirley Homes, off Shirley
highway, in Arlington.
Firemen said the bolt apparently
followed telephone wires to 2407 ana
2409 Scott street. The blaze was
confined almost entirely to the two
apartment units, but minor damage
was done to adjacent buildings.
Elsewhere little damage was
caused by the storm, which brought;
the temperature /from yesterdays'
high of 94 degrees to 73. and caused
gusts up to 46 miles per hour.
In Silver Spring, however, lights
were put in some houses as long
as two hours when a wire was
knocked down on Franklin avenue.1
Britain Charges
Kidnaping of 5
By Irgun Forces
Heavy Fighting Rages
In Palestine Amid
New Truce Efforts
B* the Associated Press
LONDON, July 7.—The Foreign
Office reported today that five
British subjects were ‘kidnaped"
in Palestine last night by Irgun
Zvai Leumi, a Jewish extremist
organization.
A spokesman told a news confer
ence the Britons were taken from
a "building on which was hoisted
the flag of the United Nations
Truce Commission.” He could not
further identify the building.
"We take a very serious view of
this incident,” he said.
He said he could not identify
those “kidnaped. '
The Foreign Office’s brief report,
he added, came from Sir Hugh Dow.
British counsel general in Jerusalem
The spokesman said both Sir
Hugh and the Truce Commission
in Jerusalem have lodged a protest.
He did not say with whom, but
presumably it was with the Israel
government.
"We assume the five persons will
be released,” the spokesman added.
The announcement indicated that
the incident took place in Jerusalem
but the Foreign Office spokesman
could not confirm this.
Heavy Battle Is Fought
On Tel Aviv-Haifa Road
CAIRO, July 7 iJP).—Heavy Jew
ish-Arab fighting raged along the
main Tel Aviv-Haifa highway last
night, a? the United Nations made
llth-hour efforts to extend the
shaky Palestine truce.
Count Folke Bernadotte. U. N.
Palestine mediator, told newsmen
in Cairo that he will continue peace
talks, even if his request for an
extension of the four-week truce is
rejected. Earlier at a conference
in Tel Aviv. Count Bernadotte said
he did not know whether Arabs and
Jews w'ould agree to an extension,
but added he was hopeful.
The truce ends Friday. Neither
Arabs nor Jews have replied to
U. N extension requests.
There was no official Indication
as to how seriously Jewish authori
ties considered the highway clash
which occurred in Israeli territory
between Tira and Jaba, about 10
miles south of Haifa. Telephone
lines between Tel Aviv and Haifa
were cut cff during the night.
2 .Marines Turned Back.
Two American marines driving
U. N. truce team trucks were turned
back by Arab*, who fired on them
lor 40 minutes before they w aved
a white flag to stop the shooting.
Pvt. Charles Phalen. 19. of Blue
field, W. Va., and Pvt. Lewis Taylor, |
19. of Jackson, Miss., said they were
forced to pull their trucks into a
ditch and crawl for cover under
Arab rifle and machinegun fire.
Phalen said a youthful, English
speaking Arab leader finally agreed
to let the trucks turn around and
return to Tel Aviv, The marine
quoted the Arab as saying the fight
ing began when 20 Jewish soldiers i
on a bus stopped tw'o local Arabs
walking along the road.
An Israeli communique said last
night that three Jews were wound
ed by Arab gun fire from Ein Gha
zal and Jaba, which it described as
Arab pockets in the Jewish area.
The communique said a Jewish ar
mored car finally silenced the Arab
fire.
Car Fired on by Arabs.
William K. McClure. Pathe News
cameraman, who drove from Haifa
to Tel Aviv last night on a side
road, said his car was fired on by
Arabs about 20 miles south of Haifa.
Another U. N. driver. Marine Pvt.
William C. Canipe of Shelby. N. C..
said his truck was fired on when he
* See PALESTINE, Page A-6.V
'Pretty Boy' Floyd's Brother
Appears Elected as Sheriff
By the Associated Press
SALLISAW. Okia.. July 7.—E. W.
Floyd, brother of Charles (Pretty
Boy) Floyd, one-time "Public Enemy
No. 1." apparently will become
Sequoyah County sheriff next Jan
uary.
On the basis of almost complete
returns in Oklahoma's primary elec
tion yesterday. E. W. Floyd appar
ently has won the Democratic nom
ination with a 300-vote margin. He
will have no opposition in the No
vember general election.
The notorious "Pretty Boy” was
killed in East Liverool, Ohio. Oc
tober 22. 1934. by Federal agents.
He had lired up to his vow that
"I'll never be taken alive."
And now his 40-year-old brother
says he will live up to his vow—
that of making a good sheriff. His
supporters think so. anyway.
An advertisement in the Sallisaw
Times last week read:
"He ain't perfect, but he's honest
and we know he will do a good job.”
The New Look in Bandwagons
Britain Throws Army,
Navy, Planes Against
Malayan Communists
Deliberate Plan to Seize
Government by Force
Charged by MacDonald
By the Associated Pres*
SINGAPORE, July 7.—Britain
has thrown army, navy and air
force units into a military cam
paign to smash a Communist at
tempt to seize power in Malaya.
Malcolm MacDonald, commis
sioner general for the United King
dom in Southeast Asia, made this
announcement tonight in a speech
prepared for broadcast throughout
Malaya.
"The present terrorist outbreak
in the federation, which may at any
time spread to Singapore, is part of
a deliberate plan by Malayan Com
munists to stage a volent revolution
and capture by force the govern
ment.” he said.
Mr. MacDonald said- .#aptured
documents and grilling of prisoners
verified this "sober statement of
tact."
Military Drive Launched.
The terrorist campaign started
nine weeks ago. Dispatches from
North Malaya said terrorists killed
five more Chinese yesterday.
Mr. MacDonald said British and
Gurkha troops have launched with
police a military campaign m Jo
hore„ Perak and Pahang states.
"It has not yet had time to de
velop full pow-er," he said.
RAF planes are scouting the whole
Malayan mainland and eastern sea
board hunting Communist guerrilla
hideouts. Royal Navy ships are
patrolling the coasts to prevent gun
running and .reinforcements, which
might come from Chinese Com
munists in Siam or South China. -
The commissioner said the 9.500
police on duty in the Malayan fed
eration will be increased by about
3.000. Another 300 will be added to
the 2.700 on duty in Singapore.
British Army forces in action or
preparing to strike include some of
the most famous regiments such as
the Royal Artillery, the King's own
Yorkshire Light Infantry, the Devon
Regiment, the Seaforth Highlanders.
Gurkha's Malay Regiment and the
Royal Air Force regiment of Malaya.
Few Reinforcements Asnea.
Some few reinforcements have
been requested. Generally the gov
ernment believes sufficient forces
are on the spot to rout the Com
munists. Mr. MacDonald said Lon
don indicated requests for more
troops will be met swiftly.
The Federation of Malaya Legis
lative Council passed legislation re
stricting the press in another move
to combat the continuing violence.
The measure requires all newspa
pers to be licensed. The government
is authorized to demand any news
paper publishing a statement consid
ered incorrect to publish free the
government's version. The law also
holds owners of typewriters and
duplicating machines responsible for
insuring that they print no ‘ subver
sive nor unlawful literature.”
Floods Halt Jap Coal Mines
TOKYO. July 7 i/P).—Floods today
put numerous coal mines out of op
eration and drowned at least seven
persons on Kyushu and Shikoku
Islands. Almost 6.000 homes on
Kyushu were flooded.
Crump Presses for Showdown
With Editor on Leaving Town
By tn« Associated Press
MEMPHIS. Tenn . July 7 —E. H.
Crump. Memphis Democratic leader,
today challenged Edward J. Mee
man. editor of the Memphis Press
Scimitar. to accept an agreement
by which one of them would leave
town.
He called for "a showdown on
this challenge.” Mr Meeman re
fused immediate comment.
Mr. Crump's statement was de
livered by Mayor James J. Pleasants
in a 30-minute radio transcription
broadcast over 11 stations.
The challenge was an outgrowth
of the Democratic Senate primary
campaign Mr. Crump is support
ing Judge John A. Mitchell. The
Press-Scimitar has indorsed Repre
sentative Estes Kefauver. ,
Mr. Crump asked that a Chamber,
of Commerce committee be named
to investigate charges he has made
against Mr. Kefauver. If they are
proved false, he said, he will "pick
up my hat” and leave town. Other
wise. he added. Mr. Meeman should
leave.
Mr. Cr.ump reiterated his charges
against Mr. Kefauver—that he voted
too often with Representative Mar
cantonlo. American-Labor Party, of
New York that he opposes the fili
buster and that his voting record
against communism is bad.
Mr. Meeman. he added, “has used
every trick to cover that shameful
record ” He attacked the editor for
publishing a series of statements
made in the House praising Mr.
Kefauver. The purpose Mr. Crump
asserted was to make it appear (
that I was not telling the truth.”
Peron Promises to Stand
With U. S. Against Russia
By the Associated Press
BUENOS AIRES, July 7 —Presi
dent Juan D. Peron, in a statement
made public today, said that “if
there Is war between Russia and
the United States we will definitely
be with the United States.”
"We could not be in any other po
sition because of our culture, re
ligion and many other reasons."
Gen. Peron said. He added, however,
that he thinks war can be avoided.
His statement was made to a visit
ing group of Brazilian students yes
terday.
Argentina's President frequently
has expressed similar views, but
diplomatic observers here said he
never before put the matter so
bluntly.
Police Seek to Link
Slaying in Baltimore
With Bardwell Case
Two Men Questioned
In Stabbing of Girl, 11,
Similar to Park Murder 1
BULLETIN
Chief Inspector M. Joseph
Wallace of the Baltimore Po
lice Department announced
this afternoon that a third
suspect was being questioned
in the slaying yesterday of
Marsha Brill. He refused to
give any further details.
Washington police today were
attempting to link the fatal
stabbing of an 11-year-old Balti
more girl with the similar slaying
of Carol Bardwell in Rock Creek
Park 11 days ago.
Both Washington and Baltimore
police admitted clues to the two
slayings were slim.
The Baltimore girl, Marsha Brill.
11. was riding a bicycle yesterday
when her assailant emerged from
the woods. She jumped from her
bike and fled, but the man caught
her and plunged a large knife into
her chest.
Two playmates who were with her
saw the stabbing.
Two Suspects Questioned.
The slayer of the Baltimore girl
was described as a tall Negro, wear
ing a blue shirt and dungarees. The
knife used in the stabbing was be
lieved to be a Boy Scout knife.
Capt. Henry J. Kriss. chier of
detectives of the Baltimore police,
said two susDects. both colored men
answering the general description
of the slayer, were being questioned
today. "But the search is still on.”
he added.
Capt. Robert Bryant. Washington's
chief of detectives, said his men had
no suspects whatever at the moment
and still were looking for a man
with a bloody shirt who was seen
leaving the scene of the Bard^ll
slaying. He said the similarity
between the Washington and Bal
timore crimes led him to believe the
same man “possibly" was responsible.
Working on this theory, he sent
three detectives to Baltimore yester
day to work with detectives there.
Detectives Return.
The three, Lt. Robert V. Murray,
Detective Sergts. Herbert Young and
Jack Baker, returned today. Capt.
Bryant said he had requested a full
report from the Baltimore police on
all phases of their investigation in
attempting to link the two slayings.
The slaying of the Baltimore girl
paralleled strangely the murder of
the Bardwell child.
Both girls were riding bikes in
secluded areas when accosted. Both
were slain with sharp knives. Both
were 11 years old.
Marsha and two playmates. Bar
bara Lee Sapperstein. 11. and her
brother, Alan. 8. were riding in a
northwest Baltimore suburb yester
day when a man stepped out of the
woods and confronted Marsha, the
other two children said.
The children were uncertain as
to exactly what happened then,
but they said they saw Marsha’s
bike fall and Marsha run with the
man after her. The man disappeared j
(See SLAYING, Page A-6.)
Light Quake Is Felt
On Jap Peninsula
ly the Associated Press
TOKYO, July 7—An earthquake
was felt on Wakayama Peninsula,
southeast of Osaka, this afternoon.
First reports- said there was no
damage.
Gray Market Brokers
Rush to Pay Taxes on
Steel Transactions
Macy Reports Probers
Have Turned Dozen Big
Cases Over to Bureau
By the Associated Press
Several “gray market” steel
brokers already have rushed in
to pay taxes on unreported in
come, Representative Macy, Re
publican, of New York said to
day, and there are more to come.
Mr. Macy, chairman of a House
subcommittee which has been inves
tigating steel transactions through
out the country, estimated that
troubled consciences will bring in
“many times” the $90,000 allotted so
far for his group.
Committee Investigators have given
the Internal Revenue Bureau facts
on a dozen “big cases—one for $500,
000,” Mr. Macy said. Several more
are ready to be turned over to the
bureau and other cases are being
studied.
“We hava given them everything,
even safety deposit box numbers,”
Mr. Macy said. “In the Detroit area
alone, we know of a number of
brokers who have filed supplemen
tary income tax returns.
“First they kept their deals in
cash to stay out of trouble. Then
our committee began looking into
the deals, for which no income had
been reported, and they were in
real trouble.”
Mr. Macy told reporters that evi
dence from Detroit indicates a good
many postwar steel brokers, many
of them frankly "gray market” op
erators, have gone out of business.
Committee investigators concen
trated first, on Detroit as a serious
steel shortage area, but are going
into other areas now, Mr. Macy
said. He declined to say where.
The term “gray market” is used
to denote premium prices charged
for scarce materials. Such prices
are not illegal, but Mr. Macy and
other lawmakers have been highly
critical of the practice.
New York Labor Chiefs
Blast Hartley Probers
By the Associoted Press
NEW YORK, July 7—A House
committee, Investigating Communist
influence in labor unions, was
blasted by some New York union
leaders as a prelude to hearings
which open here today.
Some union heads indicated they
will not answer one of the questions
the committee plans to ask—whether
ihey are Communists.
Chairman Hartley of the House
Education and Labor Committee
which is conducting the inquiry, has
said such refusal would result In
contempt of Congress charges.
Previous hearings at which New
York employer groups testified were
held in Washington.
The Greater New York CIO Coun
cil yesterday wrote Speaker Martin
asking him to "halt the reckless and
malicious abuse of congressional
powers" by the committee.
In a letter signed by Secretary
Saul Mills, the council accused the
committee of "carrying forward a
conspiracy with management to
smear and possibly destroy labor
unions as they enter into negotia
tions for wages and improved work
ing conditions.'
Arthur Osman, president of Local
65 of the CIO Wholesale and Ware
house Workers’ Union, which rep
resents about 15.000 members, said
the committee is “ framing' the
democratically elected officers'' of
department store unions here.
Declaring that Representative
Hartley is going to "try to get rid of
these leaders by trying to jail them
on some fantastic contempt charge,"
Mr. Osman said:
"We are not going to indulge in
the kind of freedom-destroying de
bate they are trying to put across
by asking about our political be
liefs.”
Chilean Cabinet Resigns
SANTIAGO, Chile, July 7 OP).—
The Chilean cabinet resigned last
night to permit President Gabriel
Gonzalez Videla to form a new gov
ernment. The President has said it
was imperative for him to name a
government having a parliamentary
base.
U. S. Set to Act
In 24 Hours on
Coal Walkout
NLRB Nearly Ready
To Ask Court Order
On Captive Mines
By James Y. Newton
The Government today was
expected to take court action
within 24 hours designed to end
the “no contract" walkout of
United Mine Workers in the
mines of the steel industry, now
in its second day.
Although Louis Silverberg. NLRB
spokesman, said the agency had not
decided whether to act on an unfair
labor charge. General Counsel Rob
ert N. Denham was expected to ask
District Court, probably late tomor
row. for an anti-strike injunction.
The request -would be made of
Justice T. Alan Goldsborough. who
three times In the past has issued
injunctions against Mr. Lewis and
the UMW.
Nearly a fourth of John L. Lewis’
400,000 soft-coal miners were off the
job, including about 40.000 employed
at pits that fuel the steel mills.
An apparent sympathy strike
spread to three additional commer
cial mines in Western Pennsylvania,
but most of the 60.000 idle outside
Hard Coal Price Boost
Of 50 Cents to $1.10
Per Ton Announced
By the Associated Press
PHILADELPHIA, July 7.—
Hard coal price increases rang
ing from 50 cents to $1.10 per
net ton were announced today
by the Lehigh Navigation Coal
Co
The company said the in
creases. which reflect the wage
boasts granted over the last
week end to the United Mine
Workers, will go into effect ■
July 16.
The increases will be the
second within six weeks for
anthracite consumers.
Lehigh’s net price schedule
will be as follows: Egg, stove
and chestnut, $12.60 per net
ton. up $1.10: pea. $10.50. up $1;
buckwheat, $7.25, up 50 cents;
rice, $6.25 and barley, $4.65,
each up 55 cents.
the “captive” mines were described
as merely slow in returning from
their vacation which ended Monday
midnight.
Investigation Nearly Complete.
The general counsel’* oSce of the
National Labor Relations Board said
it had nearly completed investiga
tion of the unfair labor practice
charges filed against Mr. Lewis and
the UMW by the steel industry. The
charge resulted from inclusion of a
union shop clause in the new UMW
contract which the steel producer*
refused to sign. The pact was ac
cepted by commercial operators rep
resenting two-thirds of the coal
industry.
Mr. Silverberg s statement on the
status of the "captive'' mine dispute
follows:
“We hope to complete our inves
tigation today. Then, within 24
hours, we should be in position to
decide whether to issue a formal
complaint and ask tjie District
Court for an injunction.”
Mr. Denham's office investigates
and prosecutes charges made under
the Taft-Hartley Act. The steel in
dustry charge is that the UMW is
attempting to force the signing of
an illegal union shop contract. The
[ union shop, under which workers
must join a union shortly after em
I ployment. Is barred by law except
where employes in formal NLRB
election ask for it.
u. S. Steel Banks Furnaces.
In the event Mr. Denham decides
to prosecute the charge, presumably
he would request the court to order
Mr. Lewis to cease his demand for
the union shop without an election,
and to call off the mine walkout
which is in furtherance of the al
leged illegal actions.
United States Steel Corp., which
is losing 55.000 tons of coal daily in
Pennsylvania alone, announced the
| banking of eight blast furnaces and
28 open hearths. Its Bessemer out
put at Youngstown, Ohio, was
slashed 50 per cent.
The Iron Age, metalworking trade
weekly, said that loss of steel pro
duction from a prolonged shutdown
of the "captive” mines would hit
; domestic steel consumers hard, and
j prove a severe shock to the Nation's
defense and the European Recovery
Program.
Production Below Demand.
This week’s production of steel,
estimated at 93 per cent capacity,
was described by the magazine as
"far below the total demand.” It
noted that Mr. Lewis’ pension strike
i See COAL, Page A-6.)
Elliott Roosevelt Buys
258-Acre Hyde Park Tract
ty tS« Auecietad Pratt
HYDE PARK. N. Y., July 7.—El
liott Roosevelt’s Val-Kill Co. has
purchased 258 acres of the estate of
his father.
The tract fronts 3560 feet on the
east side of the Albany Post Road,
directly opposite the Roosevelt Li
brary and homestead. The acqui
sition is reported to be part of
Elliott’s plan announced last spring
to provide tourist accommodations
and other facilities for persons visit
ing the Roosevelt shrine. At that
time, he announced he and hi*
mother planned to open the Val
Kill Inn this fall in a remodeled
farmhouse.
The latest purchase was an
nounced yesterday by Bernard P.
Day, president of Joseph P. Day, Inc,
He refused to mal*e public the terms,
but said the price paid was "sub
stantial."
Elliott Roosevelt personally owna
an adjoining tract of 842 acres.
0