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Mostly sunny, high around 87 today. Fair tonight with low near 68. Tomorrow partly j cloudy with scattered afternoon showers | likely, high in mid-80s. (Full report, A-2.) i Midnight, 72 6 a.m. —68 11 a.m. ...80 2 a.m_72 8 a.m. —69 Noon -82 4 a.m_71 10 a.m. —77 1 p.m. —.85 Late New York Markets, Page A-15. FAfC After Dark -B-8 Amusements A-16 Comics-B-18-19 Editorial _A-8 Edit'l. Articles A-9 Finance -A-15 l Guide for Readers me Lost and Pound A-3 Obituary _A-10 Radio _B-19 Sports_A-12-13 Women's Section _B-3-6 An Associated Press Newspaper 97th Year. No. 237. Phone ST. 5000 ★★ WASHINGTON, D. C., TUESDAY, AUGUST 30, 1949-THIRTY-SIX PAGES. City Home Delivery. Delly and Sunday. $1.20 a Month, when * 8J ("'ITT.VT'S! Sunday*, *1.30. Nifht Pinal Edition. *1.30 and $1.40 per Month «* -L O ____ __— 4 Tells of Accepting Campaign Gifts From Maragon and Helis in 1946 __ 4 Truman Unaware Of Help He Gave Friends, He Says (Text of Vaughan statement on page A-7 and partial tran script of his testimony on page A-6J By Miriam Ottenberg Maj. Gen. Harry ,H. Vaughan today told the Senate “five-per center” inquiry he -received more than $4,000 in Democratic cam paign contributions from John Maragon and William Helis, race track owner, for whom he inter ceded in getting scarce building materials for the Tanforan (Calif.) race track. His admission of these contri bution* to the 1946 campaign prompted Senator McCarthy, Re publican, of Wisconsin to demand that Gen. Vaughan supply the Senate committee with a list of campaign contributions from all those in whose behalf he inter ceded with Government agencies. Discharged Djities Honestly. Gen. Vaughan? taking the wit ness stand for the first time in the three-week inquiry, told the committee that: 1. He never received a fee for any help he gave his friends or others in dealing with Govern ment departments. 2. He has discharged his duties “honestly” and whatever help he gave to business firms or their agents was done “without any participation by the President in any way, either through approval or any knowledge on his part.” 3. He “certainly” never said President Truman was personally interested in John Maragon's trip to Italy, despite committee evi dence in the way of a penciled notation that Gen. Vaughan in formed Mrs. Ruth Shipley, head of the .State Department s pass port division, that the President ■ was personally interested. Asked Waitt for Memo. 4. He told President Truman that he was going to ask lor a memorandum from Maj. Gen. Al den H. Waitt. suspended chief of the Army Chemcial Corps, about officers eligible to succeed Gen. Waitt and showed the memoran dum to Mr. Truman after he re ceived it. The Waitt memorandum was full of derogatory comment about felJow officers. 5. He might “have made an er ror in judgment” if all the things said about Mr. Maragon are proved, but so far he does not think they have been proved and as of today he would still recom mend Mr. Maragon for State De partment employment. 6. He wouldn't say that a man who testified under oath had per jured himself, but- he described as “out and out fantasy” the test imony given by an Agriculture Department official that Gen. Vaughan threatened to "get his Job.” After nearly three hours of questioning, Gen. Vaughan was told to come back for more tomor row. Senator McCarthy told him to return with a list of names and the amounts of money received from any one in whose behalf he interceded. Made Appointments. Senator McCarthy said he had the opinion that Gen. Vaughan t did not personally profit flnancial (Continued on Page A-6, Col. 1.) I Mild Spell in Prospect As Torrid August Departs August, which for the last two years has scorched Washington, with its hottest summer weather, is preparing to make its exit, this time under ideal conditions. Clear skies and a maximum temperature of about 87 degrees are predicted for today. Tonight! the mercury will drop to about 68. Mild weather will prevail to morrow, too, the forecaster said, but scattered showers are predict ed for late afternoon. In the final week of August last year the temperature soared to 99 degrees on two successive days. The hottest weather this summer, 97 degrees, was recorded on Au gust 11. _ Former Military Attache Here Dies in Air Crash CoL Jose Perez Allende. a former assistant military attache at the Mexican Embassy, and three other Mexican aviators were killed to a plane crash yesterday at Zapopan, near Guadalajara, the Associated Ness reported from Mexico City. Col. Allende was director of the military airfield in Guadalajara. The plane fell a few minutes after taking off for Mazatalan, on the Pacific Coast, according to the re port. The other flyers killed were Capt. Huberto Pena Aguirre, Lt. *lrio Segura Flores and Sergt. os Ojeda Gutierrez. Small Hearing Room Jammed With HundredsWaiting Outside MAJ. GEN HARRY H. VAUGHAN, Pictured as he testified today before the Senate subcommittee innvestigating "five-percenters.” (Other pictures on Page B-l.l* —AP Photo. By W. H. Shippen, Jr. The comparatively small Senate subcommittee room where Maj. Gen. Harry H. Vaughan testified today was packed to the last square foot and a crowd of several hundred in a line outside the dooi'1 stood no chance whatever of get ting into the hearing room. Spectators began to assemble about 9:30 a.m. around the street entrance to the Senate Office Building on the chance of getting a glimpse of the President's mili tary aide. Meanwhile, at least 300 persons were held in a line in the corridor on the third floor. Thirty or 40 photographers and newsreel men formed a tight cir cle around Gen. Vaughan as he took his seat on the stand at 9:50 in the center of the raised desks arranged in a horseshoe shape behind which sat members , of the subcommittee. Newsreel men were lined up j around the walls behind the Sena tors, and Gen. Vaughan spoke into a group of microphones on the table before him. He was the flanked by Col. C. J. Mara, asssitant military aide to the President, and Col. Carl Ristine, retired Army officer, Washington attorney and a former service associate of the general. Gen. Vaughan told reporters be fore he began reading his state ment that Col. Ristine was ap pearing “merely as a friend.” Gen. Vaughan, a heavy-set man of 56, began by giving his name, address, military rank and his present official capacity as “mili tary aide to the President.” He put on horn-rimmed glasses and read his statement in a slow, measured voice. He was wearing over his right shoulder the aiguil lette designating his status as a White House aide. The committee room. normally seats only about 100, and specta tors produced impressive creden tials to the guards at the door. But virtually all had to be in formed there was no room inside. The White House had reserved (See~CRO WD. Page A-6.) Steel Fact-Finders : I Await Reply to Offer Of Contract Mediation Prospect of Acceptance By Larger Companies Appears to ffe Dim By the Associated Press NEW YORK, Aug. 30.—Repre sentatives of labor and manage ment weighed today a presidential fact-finding board's offer to me • diate a wage dispute which threat ens the steel industry with a strike on September 14. Both the CIO Steelworkers and some of the big steel companies indicated they might give an; answer during the day. The board hopes to have replies from the union and all 63 companies by to morrow. The surprise offer was revealed last night to newsmen by the three | board members just before they concluded their formal hearing of the evidence in the case. The! mediation suggestion was made at a private session last Friday. Plah Carefully Studied. Both sides said they were giving it careful consideration. Neither would comment about the position they expect to take, but John A. Stephens, United States Steel vice president, and an industry leader in the hearings, observed: “The problem of conducting mediation would be difficult with 63 companies and one union.” The prospect of acceptance of the offer by some of the larger companies was not believed bright in view of statements of their spokesmen in testifying before the board. At stake in mediation sessions tj (See STEEL, Page A-4J Vandenberg to Press Fight After Setback On Cutting Arms Aid Committees Back Funds To Tool Plants Despite Senator's Opposition By J. A. O'Leary Senator Vandenberg, Repub lican, of Michigan continued his fight today to scale down the $1,160,990,000 arms fund for Western Europe, after losing a preliminary test vote yesterday in the two Senate committees handling the bill jointly. By a vote of 11 to 9, the Foreign Relations and Armed Services Committees went on record ,in favor of allowing part of the American military aid to be used to supply tools and raw materials for the reopening of Europe’s own munitions factories. Senator Van denberg had opposed this form of miltary assistance. Main Proposal Still Remains. This roll call still left to be voted on today the main part of the Vandenberg amendment. This would cut the European allotment to an even $1,000,000,000, and (See ARMS, Page A-3.) First Polio Death Here Is Girl, 3 Years Old Joyce Greer, 3, colored, 1208 E street N.E., die<f Sunday of polio at Children's Hospital, the District Health Department reported this afternoon. The death, officials said, was the first polio fatality among the 44 District residents stricken jvith the disease so far this year, p New Soviet Note Says Tito Has Western Master Yugoslav Loan Held Sure Here if Marshal Continues Defiance BULLETIN LONDON <£>}.—Soviet Russia, in a new note to Belgrade, ac cused Premier-Marshal Tito’s Yugoslavia today of working “only on the instructions, of its Western masters.” The note was broadcast by the Moscow radio and recorded in London by the Soviet monitor. The note was the eighth in the bit ter exchange between the two countries. -- ! By tht Associated Press Marshall Tito of Yugoslavia is considered virtually a cinch to get an American Government loan— provided he stays alive and inde pendent from Moscow. Top Government officials said Secretary of State Acheson’s strong support for Yugoslavia's application clearly foreshadows a favorable verdict. Mr. Acheson and Ambassador Cavendish Cannon in Belgrade are reported vigorously urging the Ex port-Import Bank not only to ap- j prove Tito's bid. but to do it quickly. The Yugoslav* dictator is said to be in need of quick economic help from the United States and othqjr Western countries to help him weather the economic block ade now threatening to strangle his country. - 25 Million Sought. The Yugoslav government was disclosed lost night to have applied formally to the bank for a credit of around 525,000.000 needed to buy American machinery for Its copper, lead and zinc mines. Tito is reported to have turned to the bank, an American Gov ernment agency, because he be lieves he cannot wait possibly six months for a credit from the World Bank. This is the first time the'Yugo slav government has turned to the United States Government for a; direct loan since Tito defied Mos cow's orders about 15 months ago and split from the Russian bloc in Western Europe. Government officials familiarI with the Yugoslav application said that thus far there has been no sign of opposition from Secre tary of Defense Johnson. Mr. Johnson first opposed and then finally approved the first big; step by the United States to bol-i <See YUQOLAV. Page aT) j East German Police j Reported in Balkans fty tho Associated Pros* BERLIN, Aug. 30.—A Berlin newspaper said today that East German police are being sent to the Balkans to seal off Yugoslavia. The British-licensed Social Dem ocrat said 3,500 heavily-armed members of the Volks-Polizei (people's police) left the Russian zone of Germany for “anti-Tito action” in the Balkans Saturday. It said 12,000 more will be sent. British and American intelli gence officers said they could not confirm the reports. Social Democrat said the troops, wearing uniforms similar to those of the Red Ajmy, are commanded by Russian Gen. Smirnov. T||gg| EXPLAHfcS^fe'■ Vim^rA x 5 Government Economy Drive ExpectedJo Be Major Issue in 1950 Military Fund Bill Goes Back to House for Action On Senate Changes ly th» Associated Press A Senate economy drive which had built up steam for months appeared bogged down at last to day following final Senate action —long overdue—on billions of dol lars in appropriations. In the final voting yesterday on t‘ $14,800,000,000 defense money bill, economy advocates actually showed a good-sised majority. Pushing an amendment which would have required President Truman to cut Government ex penses 5 to 10 per cent, they sum moned a total of 49 votes against only 28 for the opposition. But that was not enough. It fell three votes short of the two thirds margin which Vice Presi dent Barkley, the Senate s pre siding officer, had ruled necessary. Seen as Issue in 1950. That appeared to put the whole economy question over until the 1950 congressional campaigns, in which it is expected to be a major issue. The proposed rider would have required Mr. Truman to chop from $2,000,000,000 to 84,500,000,000 from the estimated $45,000,000,000 he asked Congress to authorize for Government spending this fis cal year, which started July 1. Its defeat marked a hard-won victory for Democratic Leader Lucas, who must run for re-elec tion next year in Illinois. f It was a major setback for two Southern Democrats, Senators McClellan of Arkansas and Byrd of Virginia, and two top Republi can leaders. Senators Wherry of Nebraska and Taft of Ohio. With the economy amendment out of the way the Senate quickly defeated, 45 to 31, an anti-oleo margarine rider sponsored by Sen ator Wiley, Republican, of Wiscon sin and a last-minute send-it back-to-committee economy move by Senator Douglas, Democrat, of Illinois by a 49-to 25 vote. BUI Returned to House. Then it sent the huge defense appropriation bUl back to the House for action on Senate changes slashing nearly $1,400,000,000 from the House-approved total. Final Senate passage was on a voice vote. House leaders have served notice they will resist most of the Sen ate reductions, although the House (See ECQNOMY, Page A-4.) Truman's Promise of Support Met With Gratitude in Britain ___ 4 - Philadelphia Speech Makes Top Headlines In England's Press ly th* Associated Press LONDON, Aug. 30.—The British press*£ave out today with a heart felt chorus of “Thank you, Mr. President.’’ The Philadelphia speech by President Truman aroused as much gratitude as though it had been a personal pat on the back fpr every Briton. Mr. Truman's avowal of con tinued sympathy and friendship lor the British people was the day’s top news story. It was hailed on all sides , as a good omen for the dollar crisis talks starting in Washington September 7. In Labor Party circles there were audible sighs of relief. “Truman says hands off other people's politics'' was the jubilant headline in the Daily Herald, the party mouthpiece. The British Foreign Office w-as so pleased with what Mr. Truman had to say that it took the un * SeeBRIT AIN .Page A-4.) __ President Underlines Policy of Hands Off In Other Countries Great Britain today had Presi dent Truman's promise that the problems growing out of her flnan: cial troubles would be examined by this Government "in a spirit of friendliness and helpfulness.” The President outlined this country’s position in the'forth coming conversations with Great Britain and Canada in an address to the 31st annual convention of the American Legion in Philadel phia yesterday, in a comprehen sive review of the steps the United States is taking to restore the economic health of the world. With the British conversations imminent, Mr. Truman devoted much of his talk to the plight of the United Kingdom growing out of the “stresses and strains” of recent years, and the approach this country will take in seeking to lend aid. Pointedly he made clear that there is going to be no move to "interfere” in Britain's "inter (See TRUMAnTPageX~4.r West Coast Safeway Fire Causes $1,500,000 loss By the Associated Press SAN FRANCISCO, Aug. 30.—A spectacular Are which virtually destroyed the block-square ware house and office building of .the Safeway Stores. Inc., was reported under control today. Estimates of damage were about $1,500,000 for the blaze, which raged for nearly six hours through the hugp structure. Four firemen were overcome by smoke. The warehouse, built 10 years ago, was reported filled with gro ceries for delivery to Safeway Stores. Distribution from the warehouse has been blocked since early summer by the strike of CIO warehousemen against Bay area distributors in a wage dis pute. Interior fire walls in the 600-foot long brick structure were entirely destroyed, the fire department said. Viscount Charlemont Dies NEWCASTLE, County Down; Northern Ireland, Aug. 30 <^*).— Viscount Charlemont, minister of education for Northern Ireland from 1926 to 1937, died at his home here today. He was 69. House Goes Through Motions of Legislating At 10-Minute Session With 30 Attending By Chris Mathisen Approximately 30 members of the House could boast this after noon of their conscientiousness as legislators. They showed up at noon for the first of the perfunctory sessions necessary to keep the lower chamber in recess without Senate concurrence. Because |he Senate would not agree to let the House close up shop until September 31. the House must go through the mo tions of holding a session every third weekday. Representative Cox, Democrat, of Georgia, acting Speaker, Called the faithful to order at noon to day. Representative Priest, Democrat, of Tennessee, the Democratic whip, was on hand. Others present in cluded the dean of the House, Representative Sabath, Democrat, of Illinois. Mr. Priest, whose duty it is to round up Democrats when impor tant business is being transacted on the floor, showed little inclina tion to whip up interest in the proceedings. In fact, he moved adjournment at 12:10, and there was no objection. * This is what happened under the “i>o business” agreement ih effect during the House’s vaca tion: - 1. The Rev. Frank L. §nyd«r of Clarendon’s First Baptist Church offered a prayer. ?, The clerk read the Journal of Friday’s proceedings. $, A message was read reporting Senate passage of the armed forces appropriation bill, which must go to a Senate-Hous^con ferencc. 4. lire CierK reau mw and titles of two bills signed by the Speaker since last Friday. 5. A message from President Truman was read. It stated Mr. Truman was,vetoing a bill to give a Federal court in California Juris diction over claims against the Federal Government by the city of Needles, Calif., and the Cali fornia-Pacific Utility Co. 6. Representative Rankin, Dem ocrat,’ of Mississippi asked wheth er the message would be printed in the Congressional Record. Mr. Cox said Jt would. I 7. Mr. Priest moved that the House adjourn to meet again at noon Friday. Mr. Cox rattled off a call for the ayes and nays on this propo sition, and nobody saying yes, no, or maybe, he banged ^tis gavel and everybody left. Bolivia Rebel Planes Drop Mortar Shells On Airport, School Government Begins Draft Of Military-Age Men as Revolution Spreads ty the Associated Press LA PAZ, Bolivia, Aug. 30.—Two rebel planes today dropped mortar shells on the La Paz army air port and a nearby military college. The revolutionists used mortar shells because they have no bombs, a government spokesman said. iThe shells did no damage, he added. The planes, DC-3 transports, Hew over La Paz itself, but were driven off by antiaircraft rtre. Draft Is Started. Meanwhile, the government be gan a draft of all military-age men in a fight of survival against the spreading rightist revolution. Reservists, 20 to 24, were called to the colors in La Paz and orders for mobilization have been issued to all men 19 to 50. They will be called on to fight the revolt against the middle-of the-road government which broke out in scattered sections Saturday and now controls all Bolivia’s large cities except La Paz. Greatest government efforts so far have been directed against Cochabama, a city of 90,000 south east of La Paz, where the rebels are strongly entrenched. Air force planes bombed the town yesterday for the third time but reports said they did little damage. The raids terrorized the inhabitants, however, and indig nation against the act seems to have added new recruits to the re bellion. The planes, after dropping their bombs on Cochabamba, flew on to the garrison town of Camiri to t8ee BOLIVIA, Page A-4.) New Comet Discovered CAMBRIDGE. Mass., Aug. 30 (SP>.—Discovery of a new comet by E. L. Johnson at Johannesburg was announced today by Harvard College Observatory. The comet was described as very dim, being of the 14th magnitude, and mov ing south at the rtitejof a 10th of a degree daily. i\ k Revolt Attempt Foiled, Czechs Say, Dooming 6 Prague Charges Plot Link to Unnamed Western Power ly Associated Press PRAGUE, Aug. 30.—The Czech oslovak government announced today that it had crushed an anti communist underground move ment just as the group was pre paring to begin an armed revolu tion. The official press bureau linked the underground members with ‘‘a certain Western imperialistic power” but did not identify the Western power. Details of the purported plot were announced after a secret trial at which six persons were condemned to death, 10 given life imprisonment and an unspecified number lesser prison terms. Ten of those tried were acquitted. The announcement termed members of the group spies and terrorists and said they were tried on charges of high treason and spying on behalf of the Western power “with which they had been in contact.” Played Cat-and-Mouse Game. The government claimed its po lice had played a cat-and-mouse game with the alleged conspira tors and waited until they were all set to begin the revolution be fore moving in to nab them. One of those sentenced to death was Josef Charvat, identi fied by friends as chief of secur ity police here during the first republic. The government said the polit ical leader of the planned putsch was Dr. Jaroslav Borkovec, identi fied as the brother of a former chief of the Prague police s crim inal investigation section. Hia brother was ousted when the Com 'munists took over the government in February, 1948. Besides Charvat, death sentences were handed down in the cases of Borkovec; Kvetoslav Prokes, de scribed as having been fired from the Czech Army as “unreliable”; Emanual Cancik, Vratislav Polesny and Vratislav Janda. Informed sources said those sen tenced included army and police personnel, as well as civilians. Trial Lasted Several Weeks. The trial of the group was re ported to have lasted several weeks in the Prague state court. The government said many of the ac cused pleaded guilty. A “large group” ol conspirators was said to have been involved in the abortive putsch. Date of the attempted coup was not disclosed, but it was reported the group chose a bank holiday ; “when the working people were at home and unable to mount counter-action.” The announcement said the group was attempting to "prepare an armed conspiracy aimed at crushing the people's democratic ■ regime." It added that those arrested Were “the last participants of a highly treasonable underground movement which police had been tracking for some time. Second Action in Four Days. This was the second official announcement in four days about the crushing of a group de nouncing as anti-government ter rorists. Saturday the government said nine men accused of trying to overthrow the Communist-led gov ernment had been convicted of high treason by a state cou^t at Melnik, north <?f Prague. This (See CZECHS. Page A-4.) VA Denies Planning 7,500 Dismissals Veterans’ Administration offi cials declared today they planned to economize in administrative operations to avoid any further personnel cuts. They denied a published report that VA planned to Are 7.500 more employes. “Well try to economize on such things as travel expenses, tele phone calls and other day-to-day expenses," a VA official said. Several months ago VA had to make a sizable personnel cut and its officials say they are extremely anxious to avoid another one. The agency’s 1950 appropriation would necessitate reductions in personnel if other economies weren’t effected. VA officials said, however, that the planned econ omies, plus the normal attrition in employment caused by retire ments, resignations, deaths and other factors, makes unlikely any further personnel reductions. VA officials also declared the agency was building up a 2,000 man temporary staff here to pay insurance dividends to veterans. They said that VA employes in Washington “have jjtry- little to worry about” regard!® their Jobs.