The Akron Beacon Journal from Akron, Ohio • Page 2

University Fact-Finders Call Officials fOn Carpet1 May Last Years Oil Shortage In It'll 'IP A H'liW'l 1 11 mma fiwmm. 1 1 fi -ac 'ri 2 WEDNESDAY, IAN. It. 1948 AKRON BEACON JOURNAL Government Agencies Try To Alleviate Conditions tin ill r-r II fc'5" VZN 11 'i li If i of' ki ml Jmf, Officials and coaches at the University of Akron were "called on the carpet" by a student I fact-finding committee investigating the sports situation at the U. 0 -fr 'i 4 TOP PHOTO A mass meeting of students listening to a report by the committee.

Si-i' 5fV kEFT George Wilson, chairman of the fact-finding committee, speaking to the group. Childress By WILLIAM CLARK WASHINGTON The petroleum supply situation is becoming increasingly critical everywhere east of the Rockies, and threatens to affect the west coast. For the first time in history, 1948 an election year finds the oil industry unable to meet American peacetime demands In full. More crude oil production, more refining capacity, and more transportation facilities will be available next year, but this expansion will just about keep pace with Increased demands. The period of shortage may last five years! A BASIC FACTOR In the oil shortage is steel.

Steel Is neede I for drilling, pipelines, tank cars, refining, and other oil industry construction. A modern refinery, In normal time, takes at least two years to build. With steel and other building materials scarce, the problem is aggravated. Because of material shortages, two major oil companies recently abandoned plans for refinery construction at this time. UNCLE SAM'S NUMBER ONE oil expert, Max D.

Ball, director of the interior department's oil and gas division, summarizes the situation as follows: "United States refineries can handle a maximum of 5,648,102 barrels of crude oil per day. They are now operating at nearly 100 per Pauley To Quit After Stassen Showdoivn WASHINGTON (UP) Millionaire Edwin W. Pauley was ready today to step down from his government post "some time this month," but he said he intends to have it out with his accuser, Harold E. Stassen, before he quits. The special assistant to the secretary of army, who admittedly made almost $1,000,000 speculating in commodities, made it plain that Stassen had nothing whatever to do with his decision to return to private life, Food Lack Upsets Rliiiieland By DAVID M.

MCOL Chlr Daily Neva lornfti Srmr BERLIN Again Germany' chronic food difficulties arc being made part of the propaganda battle for Berlin and the rest of Germany. For some months the western Allies have been reporting regularly on the amounts of grain and other requirements shipped here from abroad. The Soviet-licensed press has taken tip the challenge. It in undertaking to show that, in spit' of this "generosity" which It consistently describes as pure money-lending for profit the western zonea of Germany are in for renewed food troubles. WESTERN GERMANY does provide some basis for such Russian anticipations.

Industrial Rhineland is one good example. The slightest delays in deliveries of food there reflect immediately on each worker's table, because it Is almost entirely dependent on "imports." For 10 days now, there have been minor disturbances I here, including protest strikes against local shortages of food and other supplies. Quick to capitalize, Russian-support circles are now trying to make a full-sized "scare" out of the situation. They have sent out reports that 20 per cent more will be cut from the present ration levels which almost every expert agrees are the absolute minimums. MUCH MORE serious disturbances occurred last year when the food situation In the Rhineland was much worse.

Plans for coal output from Ruhr mines, the most basic single factor In German economy, were completely upset. The western Allies believe they will avoid a repetition this year. There Is no suggestion at all that general rations will be reduced. The Russians apparently base their charges on the fact that some Americans Insist German farmers do their part if aid is to be continued. WHEN YOU'RE living on next to nothing, anyway, a food scare, no matter how unfounded, takes on major proportions very quickly.

FoT that reason, such a scare now could tasily become another of the many elements of uncertainty that keep Germany's existence In such constant turmoil. New Tractors, Navy Demands Cause Scarcity Of Petroleum Is your home chilly? Are you unable to get enough fuel for your oil-burning furnace this winter? We Americans are experiencing an nil shortage from causes which extend around the world. Lack of pipelines in Arabia, demand of our postwar navy for seven times as much fuel as it burned before the war, demands of 1,000,000 new tractors on American farms these are soiVie of the causes. William Clark Daffron, Washington reporter specializing In oil news', has assembled the facts about the American oil shortage in three articles. This is the first.

Duffron served with the petroleum administration for war until YJ-day, as director of public relations for the 17 eastern states. Later he entered the oil industry public relations field and was associated with major oil companies for two years. He specializes in oil problems before congress, both domestic and "It is obvious," said Pauley, "that he (Stassen) would like to claim credit for bringing about my resignation and again mislead the public. The fact is, as I have stated: When my job is finished I plan to leave the department of the army. Not before.

I expect this to be some time this month." TAI'LEY, former treasurer of the Democratic national committee and a close friend of President Truman, denounced as a "display of fraudulence" Stassen's charges that he profited from "inside" information in his market dealings. He challenged the GOP presidential aspirant to make public anything about his commodity transactions which he himself has not already told senate speculation Investigators. Expressing doubt that Stassen would leave himself open to questions before the senate, subcommittee on Jan. 23 as he has promised Pauley said: "I think I may ask him some more questions from time to time during the Interim." PAULEY'S latest blast came in response to Stassen's demand that President Truman oust him immediately because of his big market operations. The California oil man retorted sharply that his transactions have been "completely legal and ethical." Meanwhile, Sen.

Theodore Green of Rhode Inland, the long active Democrat on the senate subcommittee on speculation, charged that Republican members had tipped off Stassen with secret Information which he used against Brig. Gen. Wallace H. Graham, the White House physician. "If any such policy is continued." Green said, "the public is bound to conclude that our committee is operating as a tail to a presidential candidate's kite." Sen.

Homer Republican of Michigan, committee chairman, denied Green's charges. INVESTIGATORS closed the books on the Graham case yesterday after hearing the physician testify that he had no "inside" information to guide him in his buying and selling. Graham said he relied solely on the advice of his broker. He admitted making a profit of $6,165 in commodity trading, chiefly wheat, last fall. Meanwhll the agriculture department was preparing for publication two new lists of commodity traders.

One will cover some 5,651 persons who were in the cotton market during the big break of Oct. 15-18, 1946. The other will Include federal, state and local government officials and members of their Immediate families who traded In commodity futures during the' past two years. The latter list probably will not be ready for another week. cent of that capacity, a pace they cannot maintain indefinitely without breakdowns.

"Crude oil production Is at an all-time record hlch. New wells Lewis To Ignore Labor Act By JAMES M. HASWF.LL Of Our Wiihioilon Staff WASHINGTON John L. Lewis believes hia United Mine Workers are strong enough to stand on their own feet, independent of the Wagner law, the Taft-Hartley law, or the national labor relations board. This Is the Inner meaning of the, "We Disaffiliate:" which Lewis trumpeted recently at the high command of the American Federation of Labor, according to Iewis aides.

Coal mine operators will discover when bargaining time comes around next June that Lewis intends to ignore the whole Taft- Hartley machinery and deal with them as he did before the New Deal was Invented. Lewis takes the view nothing in the law forbids the negotiation ol a satisfactory working agreement between employers and employes. He did it before without government backing. LEWIS JOINS some surprising company in taking this strongly pro-capitalistic attitude. He joins his old friend and former associate, Philip Murray.

As president of the CIO, Murray conforms to the Taft-Hartley law to permit CIO member unions to avail themselves to NLRB services. But as president of the "United Steelworkers of America, Murray acts for a CIO union which refuses to don the Taft-Hartley uniform. LEWIS ALSO finds on his side the United Electrical Workers (CIO) and the United Fur Workers of America, which are report edly Communist-led. A number of AFL unions sup port Lewis in part. The printers' union refuses to submit to the closed-shop feature of the Taft Hartley law.

The musicians' union is fighting the anti-featherbedding clause and the provisions for joint regulation ef royalty agreements. The carpenters' are fighting the prohibition of secondary boycotts, and the teamsters' are objecting to the prohibition against accepting pay for work others do. The Issue does not seem to have arisen yet, but the garment work ers' union has long-standing health and welfare programs which col lide with the Taft-Hartley law. LEWIS IS FOR repealing the Taft-Hartley act entirely, without bothering with amendments or modifications. Does this mean a coal strike next June Lewis' advisers nay its too soon to talk about that, and point out a lot will depend upon the attitude of the operators.

The miners say they expect capacity demand for coal to continue for two or three years Capacity is fixed by the ability of the railroads to haul coal that is mined. Miners can meet this rail capacity now by working five days a week. Citizens Loan Resources Up Citizens Savings Loan Co, loaned $1,780,000 on first mortgages on Akron and Summit county homes during 1947, L. E. De-Vore, executive secretary, told stockholders at their annual meeting Tuesday night.

Resources of the firm increased to earned reserves and undivided profits totaled $408,000. Stockholders reelected Ray E. Bloeh, Claude Brown, L. K. De-Vore, J.

A. Gehres, J. A. H. Myers.

George Neal, Dr. Paul Rohrer and C. W. Von Gunten as directors. Officers reelected were Brown, president; Von Gunten, first vice president; Rohrer, second vice president; DeVore, secretary: Roy H.

Musser, assistant secretary; Neal, treasurer, and Myers, attorney. Two new officers, Ward Wetzel, assistant secretary, and Robert B. DeVore, assistant treasurer, were elected. Judge To Discuss U. S.

Problem Judge Walter B. Wanamaker will speak on "America's Frob-blem" flt the monthly meeting of the Summit County Machine Shop group. The meeting will be at 6:30 p. m. Thursday at Akron City cluh.

Members are from machine shops and allied Industries in the Akron area. must he drilled, new pipelines must be laid, new refineries must be built before the supply situation can be corrected." The willingness of congress and the ability of the executive branches of the government to aid the oil industry In meeting the unprecedented demands hold the key to rapid solution of the short-term problem. UNDER A PROVISION of tho Taft anti-inflation bill passed in the recent special cession of congress, Secretary of Commerce W. Avcrell Harriman conferred with leaders of the stoel industry Jan. 8 to develop a program for voluntary allocations and establishment of a priority list.

Success of the Harriman program would help the oil industry which will need large quantities of steel for at least five years. Other government agencies acted to alleviate the oil situation. The maritime commission has summoned 15 top oil industry executive! to work out a tanker-pooling program to eliminate cross-hauling, prevent sky-rocketing of tanker rates and improve efficiency of shipping. SECRETARY OF INTERIOR Julius A. Krug has issued a call for a voluntary plan for company cooperation In meeting local oil Truman Asks Action To Check Inflation (Continued from Page One) To Defend Self On Stand Lester Childress, 23, of 183 Lake was expected to take the witness stand in common pleas court today and explain his version of a 1946 traffic accident which took the lives of three young people.

Childress, under indictment on three counts of second degree manslaughter, is on trial before a jury in Presiding Judge Bernard J. Roetzel's court. He was driver of a jeep, June 29, 1946, which struck another car on W. Thornton st. and turned over, causing fatal injury to of the six jeep occupants.

CHIEF WITNESS for the state yesterday was Geraldine Gindale, now Mrs. Geraldine Palija, 2235 Sixth who was driving the second car involved in the crash. Mrs. Palija testified she wai driving at a rate of five to 10 miles an hour when the jeep approached left of the center of the street and sideswiped her ear at the Intersection of Washington and Thornton sts. The jeep turned upside down, spilling the six young passengers to the pavement.

Fatally injured were Eugene E. Smith, 22, of 603 Rhodes Miss Amelia Chance, 23, of 558 Grant and Annabelle Roberts, 19, of RD 2, Uniontown. Childress was indicted by the grand jury In October; 1946, but the trial was delayed until the current term of court because Important witnesses for the state were in the armed services and other parts of the country, Prosecutor Alva J. Russell said. Rise In U.

S. Sex Crimes Alerts Akron Akmn police were on the alert today In a campaign to reduce the number of sex crimes here. Such offenses are increasing throughout the country in what authorities say is an aftermath of the war. Seriousness of the situation was brought to mind by the murder of Sheila Ann Tuley, 8, In Cleveland. Akron, thus far, has escaped crime of this type.

Detective Capt. John F. Struzen-ski reports that 800 known sex criminals have passed through the police identification bureau in the last 10 years, "and it is safe to assume that a majority of these are at liberty." He said manv of the Rf)0 wpr arrested on other charges but had previous records of sex offenses. Others had served terms of sex crimes, and nearly all had been in juvenile court. Coal Exchange Elects Jones Morton Jones of the City Ice Coal Co.

was elected president of the Akron Coal Exchange at the annual meeting of dealers Tuesday night at the Elks club. Jones succeeds Fred Snook of the W. E. Wright who headed the exchange four years. Others elected were Fred Byal of the M.

M. Mell vice president, and Birney Mills, West Hill Coal secretary. Directors chosen were Louis Klages of Klages Coal Ice Snook, Adam Bernard of Botzum and C. W. Mottinger of Fairlawn Supply Coal Co.

Trade Group Elects Kibler Ralph Kibler has been elected president of the North Akron board of trade for the third time. A member of the board of Summit county commissioners, Kibler is the only person to serve three terms as president of the trade board. Other officers for 1948 are W. M. Link, vice president; Robert Dewey, secretary; M.

M. Yount, treasurer, and Elmer Green, chairman of the board of trustees. The election was held following a dinner at which Yount was host. Trnnosed leplslntlnn fnr unlvof. sal military traininir will cussed at a mectinsr of the Falls- North Hill Amvetu nn.t p.

m. today In the clubrooms. State rd. and Chestnut blvd. Edward Vallen i comprised entirely of World War In congress, which Is more oil-conscious than ever before, oil Is a primary legislative target.

Eleven senate and house committees are planning early hearings focusing First will be an investigation on petroleum. of shortages. Coiincilmen Insist Day Take Tax Job Councilman Ed Day, at large, may have to keep his job as chairman of jity council's tax and assessment committee. Members of the council's committee on committees who will have final say In the. matter, said today they don't see why bay's resignation should be accepted.

"He's had plenty of experience as a member of that committee during the past two years," John Head, a member of the committee on committees, said: "He is the only councilman to head the com mittee. I shall insist he serve as chairman." COUNCILMAN Edward O. Flowers expressed the same sentiments. Another member of the committee said Day has given no adequate reason why he should not head the tax committee. It alt stems from the political feud between four Insurgent Democrats and alx party line members.

When Day was asked by Head what reasons he had for resigning. Day replied: "I talked it over with my dog and we both decided I should resign. I'll be glad to serve on the committee but not as chairman." After Tuesday's council meeting Day told reporters: "I don't wish to tred in the same light as Fes-senden puppets." Paul M. Fessenden, executive secretary of the Akron CIO council, was purported to have had a hand in maneuvering the election of Francis J. Greissing as president of council over Leo Berg.

Club To Install New Officers New officers of Admiral Mof-fett Navy club will be installed at a meeting at 7:30 p. m. today at the clubrooms, 411 E. Market St. Edwin J.

Ritter will be installed as commandant, with R. J. Cos-till, Akron state commandant of the Ohio Squadron of the Navy club of the United States, in charge of the ceremonies. Other new officers are M. Terry Beavers, senior executive officer; Richard Squier, junior executive; Arthur Andrews, paymaster: Robert Ward, shipswritcr, and Robert Harmon, judge advocate.

UMT Is Topic For Amvels Universal military training will be the topic discussed at'the first 1948 meeting of the Cuyahoga Falls-North Hill Amvets post in the club at Chestnut blvd. and State rd. at 8 tonight. Com, Jack Roc will describe to the members new recreation facilities installed in the club. They include a ping-pong table, shuffle-board and a pool table.

Committee assignments will be completed. A report will be given by Andrew Maconachy, general chairman of the committee planning the state Amvets bowling tournament at Ten Pin Lanes in March. 570 To Finish High School Two hundred more seniors will be graduated from eight city high schools this month than during I a commencements last January. Supt. O.

C. Hatton announced today that approximately 570 boys and girls will get diplomas during seven programs Jan. 29. Last year 336 pupils were granted certificates. In 1944 only 240 seniors were graduated in January.

The all-time high came In 19H6 with 841 persons. The eight schools planning commencements for Jan. 29 are: Burhtel, Central, East at Goodyear theater; Garfield and Ken-more, combined program in Garfield's auditorium; North In Harris school gymnasium; South, and West. Other hearings are slated on source and adequacy of oil supplies for national security, imports and exports, development of foreign Eleven Committees Eleven congressional committees oil shortage. Here is a list of those looking into the subject: SENATE Small business, Interstate and foreign commerce, Judiciary, public lands, foreign relations and national defense.

HOUSE Armed services, Interstate, and foreign commerce, public lands, public and merchant marines and fisheries. fields, tho tidelands issue, need for government controls, oil requirements of the Marshall plan and other foreign aid bills. SEVERAL LEGISLATIVE -measures are on the congressional calendar and at least one proposal emerge from each of the hearings. Sen. Kenneth S.

Wherry, Republican of Nebraska, has requested that a bill be Introduced to ban foreign sales of the remaining tankers held hy the maritime commission and extending the commission's tanker chartering authority. Senator Wherry, who is chairman of tho senate small business subcommittee, has been prodding the oil industry to make more petroleum available to small business men and independent distributors. HIS COMMITTEE, he says, is getting more complaints than ever "but high costs raised the question whether this rate could be continued." Exports hit an annual rate of then declined. The future balance of trade will de-pend much "on the size of government aid and private credits extended." The gross national product, which measures all goods and services produced in current dollar values, reached a a year rate in the last half of 1947, compared with in 1946. HERE MR.

TRUMAN flashed another "danger Inflation" signaV The increase in consumer expenditures exceeded by $3,500,000,000 the increase in their incomes, he said, adding that at their present income consumers cannot absorb the new rate of production when savings dwindle, when the use of credit subsides and when business retooling levels off. "Wage advances during 1917 kept un irenerallv with th living trend during tho year," the president said, "but did not gain the ground lost price Increase exceeded wage advances in 1946." Mr. Truman defended his cost-of-living tax plan against charges from Republican legislators that it would be triply inflationary by increasing ready money in the hands of consumers, causing corporations to raise prices and discouraging production. THE TEMPORARY increase in corporation taxes would offset any inflationary ef-feet of the $40 deductions, Mr. Trimian said.

"In any event," he added, "these equitable adjustments will not interfere with success in our anti-inflation efforts if the other anti-inflation measures are promptly adopted and vigorously applied." Despite his Insistence that the full 10-polnt program laid before the special session is "needed badly," Sir. Truman dropped a hint In today's report that he may not Insist on strengthened federal controls over bank credit. He "commended" voluntary restraints on lending recently adopt-ed by the American Bankers asso-ciation and said if these succeed, "further general action might not be required." Nevertheless he urged congress to give "close study" to current proposals, especialy one presented by Marriner S. Eccles, Federal Reserve board chairman, and he ask-ed for legislation "to make available all the powers that may be needed." Going over again much of the ground he covered In his state of the Union message a week ago and his budget message last Monday, the president called for federal aid for elementary and secondary education, prepaid health Insurance, increased payments and coverage, of social security, old-age and jobless benefits. Speaking in terms of 10-year goals, Mr.

Truman proposed improved soil management on half the nation's crop and pasture land, more dams for flood control and power, a doubling of the sustained timber yield, development and stockpiling of strategic materials and industrial development. AS FOR FOREIGN' affairs: "Our economic relations should be such as to aid in the restoration of Europe under the European recovery program. "In a framework of increasing world prosperity, our country can move forward most confidently to meet the problems of our domestic economy," the president continued. Recalling that he issued a report in August, Mr. Truman said that since that time, "the country has maintained a high level of prosperity, but on a wave of inflation which has already caused serious hardship and presents grave concern for tho future." At the same time, he said, "The year has revealed the previously unmeasured size of the profitable market which is furnished when nearly 60,000,000 workers are steadily employed with modern equipment and organization." BLENDING optimism and caution, the president gave this review of the 1947 record: Consumer Income reached a new high rate of $1,264 a person a year, compared with $1,074 In early 1946, but the buying power of the consumer's Income dollar dropped nearly 8 per cent.

Savings were smaller and consumers "drew increasingly on eredit." Consumer credit, which Mr. Truman wants brought bark under wartime controls, also reached a new peak $18,800,000,000 by Dec. 81. Corporate profits before taxes rose to $28,000,000,000, or one-third higher than in 1946: profits after taxes were $17,000,000,000 as compared with $12,500,000,000. BUSINESS investment reached a 'record level of $25,000,000,000, but "some part" of the increase lay in higher prices of building and equipment.

Housing units completed were nearly double the 1946 number Land Break-Up Progresses Cblc( Dally Nrwi Foreign genrle TOKYO Land reform, one of the Allied occupation's biggest undertakings, is running so far ahead of schedule that break-up of Japan's feudal land-owning system will be virtually complete by June. That was the prediction of 6CAP spokesman today. He re vealed that nearly 8 million acres cf land will have been transferred to tenant farmers by summer. As part of the reform the Japanese government has purchased approximately 3.5 million acres fct resale. Already 300,000 acres have been sold to well-heeled peasants who because of unprecedented prosperity created by food shortage, have been able In many cases to pay in cash.

Redistribution of land Is being accomplished speedily despite the apathy of many peasants and the attempts of large landowners to (abotage this far-reaching reform at every turn. Amsterdam Seeks UN Bid LAKE SUCCESS, N. Y. Amsterdam, through the Dutch government, Is making an energetic bid to become the temporary work' rapital when the United Nations general assembly holds its 1918 autumn session somewhere in Europe. The problem hinges on finding adequate hotel and office space for some 4,000 delegates, secretariat members and news correspondents.

Secretary General Trygve Lie, accompanied by his personal assistant, William H. Stnneman, and Assistant Secretary-General Adrl. sn Pelt will spend the next four weeks touring potential sites in Paris, Geneva, Brussels, Amsterdam, The Hague and Prague. Faris, thus far, is the leading thoict. on the scarcity of fuel oil.

However, he declares, the major Interested are more or less interested in the for legislation can be expected to oil companies arc doing a "pretty 'Swing Hoys' Hit Hy Ked Editors BERLIN IT) American style swing music and dancing is making some German Communist editors In the Russian occupation zone see red. The young German hep-cats around Jena, in Thuringia, are having an especially rough time under criticism from provincial newspapers. It go so rough for Jena's most popular band, the "Swing Boys," that this group has announced It is going west to play for U. S-troops in the American zone. good Job" of living up to their agreement with the committee to meet the oil needs of small business as fully as possible.

Wherry's committee, which began hearings on the oil shortage a day before congress reconvened, urges oil companies to preserve the independent, or small business man, in the oil Industry. Airline Planned For Pilgrims LONDON Pakistan pilgrims to Mecca, whose journeys have taken 15 days, soon will be able to reach the shrine In one day by air. Two Pakistan i strlalists. Hussain Mulik and Mahmnud Har-roon, are forming a new airline, to be a subsidiary of the Islamic Airways and known as "Pakalr." In London to buy new planes, the industrialists said the company already has 12 aircraft, including two four-engined Liberators..