Reno Gazette-Journal from Reno, Nevada • Page 1

'A Newsoapei Foe the Information and Enjoymeiy For Every Member of THE FAMILY WEATHER High cloudiness tonight, clear Wednesday; little change in temperature. Nevada's Greatest Newspaper SEVENTY-SECOND YEAR NO. 113 RENO, NEVADA, TUESDAY, AUGUST 24, 1948 20 PAGES 5 CENTS rn (TDfrCl 5) GfflETTE More Meetings Scheduled To Settle Technicalities Tough Political Battles Mapped In Border States Inflation Held Prime Factor As Output High Nation's Turnout Of Goods, Service ARecord Figure WASHINGTON, Aug. 24. UP) If the nation's turnout of goods House Committee Listens to Budenz Confrontation' Is on Schedule for Wednesday WASHINGTON, Aug.

24. (4P) Louis Budenz, former Communist, was called as a surprise witness today in the house un-American activities committee's spy investigation. Budenz testified behind closed doors. Committee sources said they expected to obtain from his information on tions between Whittaker Chambers and Alger Hiss. Budenz formerly was editor of the Daily Worker.

He Solid Agreements are Expected After Seven Kremlin Conferences MOSCOW, Aug. 24. (AP) A qualified source said the western envoys and. Russia have reached a general area of agreement during talks climaxed early today by a four hours and forty minutes Kremlin interview with Prime Minister Stalin. informant said technicalities lie ahead for adjustment but that these are not trifles and will require consid erable negotiation.

U. S. Ambassador Walter Bedell Smith renounced Communism and became a Catholic. The commit tee did not say whether he Germans Denied Election Right By Communists BERLIN, Aug. 24.

UP) Marshal Vassily D. Sokolovsky announced today that Germans in the Russian zone will not be allowed to hold community elections this fall. The Russian commander said the voting will be put off for one year. It is the first time in the occupation that one of the four powers Cops Whistle At Women But Must Desist DETROIT, Aug. 24 UP) The Detroit police department today ordered its patrolmen to stop whistling at women.

"From now on, the only time an officer whistles it will be to stop traffic," a Jiolice edict declared. The order was passed down after girls working at a Michigan Bell Telephone Co. branch, across the street from a police station, complained that officers' whistling was frequently not in line of duty. Commissioner Harry S. Toy ordered an inquiry.

One tight-lipped patrolman commented: "Whoever complained must not have been getting whistled Must Explain Mystery Flight RCAF Prepares To Question Pilot EDMONTON, Aug. 24. P) A 60-year-old Washington, D. man who flew northward from Edmonton two weeks ago in search of a spot where he could get away from civilization, bumped homeward on horseback When V. G.

Murphy gets back, he'll have some explaining to do to the RCAF, which spent more than $35,000 looking for him. His twin-engined Cessna aircraft vanished fteff.Jhe filed a flight plan to Grande Prairie, Alta, 240 miles northwest of here, on what he said was the first leg of a trip to Fairbanks, Alaska. FOUND OFF COURSE Royal Canadian mounted police officers found Murray at lonely Nose Creek 75 miles southwest of Grande Prairie and well off his announced course. He appeared none the worse for his 16-day outing. The plane, well-stocked with supplies when it left Edmonton, still is missing.

News of its fate, and the story of Murray's back-to-nature holiday, will have to await completion of the 50-mile trek to Wembley, nearest outpost of the civilization he left two weeks ago. HOPED TO HIDE First hint of Murray's plans came after his disappearance when a Washington friend told of a letter he had received from Murray the day before, in which he told of 'an abandoned airfield with some buildings in the wilds of northern Alberta, 100 miles from the nearest road or trail." There he hoped to "get away from it all." RCAF officials commented that Murray appeared to have surveyed his course carefully' before his de parture. They added they would ask the transport department to file charges against the pilot if it was established that he had given a false destination for his flight. Dutch Officials Seize Hospital BATAVIA, Java, Aug. 24.

UP) Dutch authorities today seized the Republican hospital in Batavia. After last year police action, the Dutch took over all republican facilities in Batavia except the cen tral hospital. The Dutch effort to bring the hospital under Netherlands administration failed last September. emerged from the Kremlin in a buoyant mood and declared "we're going to have more meetings." He added later: "We're always optimistic. We expect the best and prepare for the worst." The envoys have been trying since late July to find bases for lifting the land blockade Russia imposed on Berlin and for four power talks on Germany and perhaps other problems in Europe.

CHANCES IMPROVED The informant said the seven Kremlin conferences, two of which included Stalin, have a "fair" chance of resulting in a solid agreement. He said prospects are far better today than thev were at this time yesterday before Smith, French Ambassador Yves Chataigneau and British Envoy Frank Roberts saw Stalin. "Some progress" has been made. the source said. He declared there is no cause for pessimism.

The source said the Western Powers and the Soviets now have reduced their terms' to the "lowest denominator." Had. no progress been made last night and early to- aay, ne aaaea, tne current series of conversations would have ended. (Whitehall sources in London said Stalin introduced certain "new idea" which offer hope for an east-west settlement in Berlin. The introduction of these unexplained new thoughts dispelled fears that the diplomatic exchanges would break down, the informants' said. They added that prolongation of the Moscow negotiations averted a potentially explosive international situation, at least temporarily.) NO TEMPER LOST It was stressed that despite the length of the talks, the delicacy of the subject and the frankness exhibited by both Stalin and the western diplomats, there has been no loss of temper.

The conversa tions have been correct and polite, Indications here were that the four powers may issue a public statement shortly on the talks. It is not definitely known whether this will be tonight or to morrow or the next day. It is ob vious there must be conversations in the four capitals. There is little indication of how much ground the announcement will cover, but it is reported it should be sufficiently substantial to put at rest some of the rumors circulating around the world. Miners Escape Injury in Cavein MARYSVTLLE, Aug.

24 UP) Miners who escaped injury in a cavein at the Drumlummon gold mine here went back to work today to clear out 500 feet of muck and timbers which fell into the main shaft. The 20-man day shift at the Rain bow Mining company's mine got out on ladders or were pulled up on ropes from the emergency exits yesterday when the main shaft caved in. and services holds to the recent hot pace, it'll amount to a quarter of a trillion dollars a year and call for higher arithmetic to keep it straight. The flood of goods produced and services rendered reached the anual rate of $248,000,000,000 in the second quarter of this year, a commerce department report showed today. That compares with totals of $231,636,000,000 for the whole of last year and $204,000,000,000 for the year before.

But there were at least a couple of thorns on the rose. The department noted that: 1 A major part of the swollen value merely reflected inflation higher prices and wages. In consumer goods, especially, value. that is, prices rose more than the quantity of things produced. 2 Industrial production the output of factories and mines was dipping in June as a result of shortages of material.

But that was more than offset by increases in the value of farm products and of various services by doctors, sales clerks, auto mechanics, etc. Notable factors entering into the second quarter picture, as reported by the department, included: Government spending rose more than $2,500,000,000 above the first quarter rate, chiefly due to European aid and state and local outlays for highways and other construction. Private investment, on the other-hand, dropped somewhat, mostly due to a slowdown in the building of business inventories. A moderate pickup appeared in consumer- spending for personal use, which had tightened up some early in the year. Bigger sales of furniture and home appliances, and larger outlays for laundry and shoe repair services were items in a $3,000,000,000 increase in the consumer spending rate.

Consumers had more left to spend after taxes, for one thing. The federal income tax cut which began showing up in May gave them an extra $3,000,000,000 a year to "blow" and still keep over all savings at a little higher rate than in the first quarter of 1948. U. S. Consulate Worker Seized JERUSALEM, Aug.

24. UP) The U. S. consul general here has protested to the Jewish governor of Jerusalem that the Stern gang kidnaped and mistreated an American consulate employe Sunday. The consul general, John J.

Mac-Donald, said the Sternists seized George F. Paro, a confidential clerk in the consulate and held him for seven hours, during which they handcuffed, blindfolded, slapped and questioned him. An Israeli army source said the Sternists kidnaped Paro and called him a "damn British spy" because he bears a faint resemblance to a British detective who left Palestine four months ago. After Paro a 33-year-old resident of (30 Pine st.) Granville, N. was released by the Sternists he was held for another nine hours by Israeli military police.

Asked why the army held him so long a spokesman replied: "To clear up such a mystery in nine hours is not bad police work." would testify in open session tomorrow when Chambers and Hiss face each other. LONG HERALDED That Hiss-Chambers meeting will be the long heralded public "confrontation." The two men have told conflicting stories. The big ques tion is which one will make his story "stick" in the opinion of the committee. Budenz spent 40 minutes with the committee. Rep.

Nixon (R-Calif.) told reporters: "He was able to testify on the matters in controversy between Hiss and Chambers." Nixon said Budenz supplied valu able information and "will be called back at -a later date." Preliminary to tomorrow's open session, the committee also was questioning other possible witnesses in Nixon said the committee would spend the whole day questioning four people. The result of this questioning, he said, will determine how many per sons, other than Hiss and Chambers will be heard tomorrow. Hiss, former top-rank state department official has indignantly denied any Communist tinge or af filiation. Chambers, avowed one-time Red, just as insistently has described the operations of a pre-war Communist underground in Washington and tabbed Hiss as one of the leaders. MET ONCE BEFORE Hiss and Chambers already have met once since the committee's spy investigation exploded into print three and one-half weeks ago.

But that meeting was behind the locked door of a New York City hotel room. And aside from an admission by Hiss that he actually had known Chambers only by another name some 13 years ago the two men were as far apart in their stories as ever. The same committees members who arranged the New York meet ing a week ago today lined up tomorrow's open session to give both the accused and accuser a final chance tp come up with clinching proof. Hiss, who resigned from the state department last year, now is head of the Carnegie endowment for international peace. Chambers, who said he was a Communist from 1924 until 1937, now is a senior editor of Time magazine.

Actually, their names are only two of more than a score brought out during the sensation-packed hearings which seem certain to echo in the coming presidential election campaign. President Truman twice has denounced the investigation as a "red herring" intended to take the public mind off what he called congression al failure to deal with cost of living and related issues. Republican leaders retorted that the hearings have shown an alarming Communist infiltration of the government. CROP ESTIMATED NANKING, Aug. 24 UP)- -The Chinese food ministry estimated today that China's 1948 rice crop would amount to 23,741,000 metric tons.

Last year's crop was metric tons. Grants from the international food committee will more than make up the difference. Republicans Plan Grand Strategy In '48 Campaign WASHINGTON, Aug. 24. UP) Some of the toughest political battling of the presidential campaign shaped up today for seven so-called border states, including President Truman's Missouri home grounds.

An effort to capture Kentucky, which provided he Democratic vice presidential nominee in Senator Alben Barkley, apparently runs second only to the assault on Missouri Democrats in the grand strategy of the Republican command. CENTER EFFORTS Besides Missouri and Kentucky, the Republicans intend to center a lot of their campaign efforts on Maryland, New Mexico, Oklahoma, Tennessee and West Virginia. These seven states have a combined electoral college vote of 58, only 11 more than New York alone musters. But their capture or loss could spell the difference between victory or defeat for either party if the race between Mr. Truman and Gov.

Thomas E. Dewey proves close. The outcome of a senatorial race in each of the states except Maryland and Missouri which have no such contest this year also might detertnine control of the next senate. Herbert Brownell, manag ing the Dewey-Warren campaign, already has emphasized the Re publican interest in the border areas with an announcement that an "intense" GOP campaign will be carried on in Tennessee. There Carroll Reece, former national chairman, is running for the sen ate.

Most politicians rate the Re publicans' chances of carrying Tennessee for Dewey and War ren as less favorable than any of the other border" areas. Strangely enough, some of them look on Maryland, which now has two Democratic senators, as a better GOP hunting ground than either West Virginia or Oklahoma, with one Republican senator each. However, Senator Tydings told a reporter he thinks it's too early yet to get any reliable line on sentiment in his state. Tydings said. he will campaign in Maryland for the Truman-Barkley ticket but does not expect to speak outside his home state.

Senator Hatch (N. who heads the Democratic campaign speakers' bureau, returned from a short trip home to report his belief that "New Mexico is safe for the Democrats." "There is an entirely different feeling than that which prevailed in New Mexico during the 1946 campaign," he said. Senator Kilgore told of seeing signs of great Republican activity in West Virginia, where Republican Senator Rever-comb is a candidate for re-election. "The Republicans are spending a lot of money there, especially on billboard advertising," Kilgore said. "But it's all right with us Democrats.

The most interest they can arouse in the election, the more people will vote. We can lick the. Republicans in West Virginia any time we get out a normal vote." Senator Elmer Thomas said his state looks Demo cratic, unless a Republican sweep develops across the nation in November. Missouri apparently has been left as a two-party battlefield by the secretary of state's ruling there barring Henry Wallace's Progressive party from the ballot. The ruling has been appealed to the courts.

With the possible exception of Maryland, the Wallace party shows few signs of being likely to affect the final resists elsewhere among the border states. German Soldier Repatriation Urged FRANKFURT, Germany, Aug. 24 UP) The Frankfurter Neue Presse, quoting Bavarian reports. said today the German Council of States' has asked the U. S.

Military Government to aid. repatria tion of 600 former German soldiers believed still in Spain. The Germans were said to be living in Spain "under difficult and most unfavorable circum stances." SPEAKER John Foster Dulles, foreign policy advisor to Gov. Thomas E. Dewey, who today in Amsterdam told the world council of churches that Communist policies make it impossible to create a universal organization of peace through law.

Dulles Attacks Communist Plan Aim Not Peaceful Churchmen Advised AMSTERDAM, The Netherlands, Aug. 24 UP) John Foster Dulles declared today that communist policies make "it impossible to create at once a universal organization of peace through law." Nevertheless, the communist problem cannot be solved by trying to crush communism by force, Dulles said in an address prepared for the assembly of the World Council of Churches. In any analysis of the world situation, he said, "christian responsibility emerges as an inescapable fact." NOT PEACEFUL Dulles, foreign policy adviser to Gov. Thomas E. Dewey, the Re publican presidential nominee, said "the Soviet regime is not a regime of peace and, indeed, it does not purport to be." He added: "It may hot, and I hope that it does not, want international war.

But if so, that is a matter of expediency, not of principle. Violence and coercion are the accepted methods, class war being, however, usually preferred to national war. "It is inevitable that orthodox communism should reject peaceful ways, except as a matter of tempo rary expediency, because it rejects the moral premises that alone make possible the permanent or ganization of peace." Peace, Dulles declared, can never be stabilized "except by institu tions that seek to reflect the moral law and that respect the dignity of the individual. "There always have been, there always will be, spirits that will rebel against totalitarian dictatorship and that fact, in turn re quires such dictatorships to be viO' lent and coercive." DYNAMIC LEADERS The communist leadership is dynamic, Dulles said, and it has world-wide ambitions. He added "That, of course, makes it im possible to create at once a uni versal organization of peace through law and it confronts those who seek peace with a difficult problem." But there is a solution, he went on.

"The solution is" for those who have faith to exert themselves more vigorously to translate their faith into words. Those who be lieve in the moral law and human dignity must be more concerned to make social institutions reflect those ideals. In that way they can provide an example that others will follow and a unifying process will be begun." Albania Protests Border Violations LONDON, Aug. 24. UP) Albania has protested to the United Nations that Greece has been violating the Albanian' border, the Soviet "News agency Tass said last night.

Tass quoted the" Albanian telegraph agency as saying five border violations occurred between Aug. 3 and Aug. 12. Greece has filed similar complaints against Albania. The Albanian protest, Tass said, charged the border violations oc curred "with the support of Anglo American imperialist agents under the sign of the United Nations Balkan commission, Two U.

S. Planes On Supply Run Die RAVOTZHAUSEN, Germany, Aug. 24. UP) Two American planes on the supply run to blockaded Berlin collided outside this Americsn zone town today, killing four U. S.

fliers. Five American fliers have been killed previously in two accidents on the air run since the. Russians blockaded Berlin late in June. The planes were two-engined C47s. They plunged into cornfields around this village which is 14 miles northeast of Frankfurt.

The planes Were returning to Wiesbaden frrm Berlin, where they had delivered' supplies. Names of the victims were withheld pending notification of survivors. Hours, after the collision, flames of th urrprlrncp nrpVPntoH romraral of the bodies. Rescuers could see only tone body In the tangle of debris. A spokesman for the S.

air force at the scene said, however, the Dakotas on the Berlin run carry two men each and there was no reason to doubt that four men had perished. He said there might even have been hitch-hiking passengers aboard. Several German farmers reported seeing the collision. All said thsy saw no parachutes. SEVEN MEET DEATH MIDDLETOWN, Aug.

24. UP) The army air base here reported a C-47 army transport crashed today five miles north of Newton, N. J. The army report said at least seven persons were killed. Olmsted field base flight service said the plane reportedly crashed at 12:55 p.

eastern standard time. Newton is in northern New Jersey and has a population of 55' JO. A public relations officer said the plane hit a R-25 from Stewart Field, N. Y. The officer said only the wing tip of the B-25 was damaged and that it returned to Stewart Field.

TWO FLIERS DIE SAN ANTONIO, Aug. 24 UP) Two U. S. airforce flyers were killed yesterday afternoon when a Randolph air force base training plane crashed one mile north of Selma. Dead were First Lt.

Frank Eichel, 27, flight instructor from Buffalo, N. and student officer First Lt. Kenneth G. Richmond, Manchester, Ohio. Eichel's wife, Martha, lives in San Antonio and Richmond's wife, Elanor Ruth, in Seguin.

Witnesses said the plane apparently went out of control before tne crash. PERISH IN CRASH ADRIAN, Aug. 24. UP) George T. McDonald, 34, Plainview, and Ira Jones, about 50, Tu-cumcari, N.

were killed when their light plane crashed near here. James Seale. a ranchhand on the J. S. Birdwell ranch, found the wrecked plane yesterday morning.

McDonald and Jones took off from the Tucumcari airport at 8 p. m. Sunday night. The plane, a Piper Vagabond, belonged to Hutcherson B. Flying service, Plainview.

McDonald chartered it to attend a fliers' breakfast at TucumcarL World Congress For Intellectuals WARSAW, Poland, Aug. 24. UP) Approximately 500 scientists, artists, writers, musicians, religious leaders and economists from --14 countries will meet at Wroclaw tomorrow in a world congress of intellectuals. Congress organizers said it was necessary for intellectuals to get together at this time "to help defend the peace." The congress organizing committee announced last night that Sidney Gruson, New York Times correspondent here, has been barred from covering the congress because he said it "is a Communist congress." Lhas postponed an election. isokolovsky issued his order over the protests of the zone's two non-Communist parties the Conservative Christian Democrats and the Rightist Liberal Democrats.

The parties demanded only last week through their press and at open meetings that "in the name of democracy" the people be given a chance to vote. DEFEAT FEARED Non-Communist leaders have claimed the Communists want the elections put off because they feared they would suffer a severe defeat. The Communists have claimed the people are too busy working jfor recovery" to vote. The Soviet zone is controlled both politically and economically by the Soviet-sponsored and Communist-dominated Socialist Unity party (SED). Both the zone and its "official' party have been having their troubles of late.

The Russian sector has been combatting a food crisis which has forced the Russians to import supplies. The Communists have been seeking to overcome their economic troubles with a two-year plan for which they are demanding the "utmost efforts" from the population. The SED has been undergoing a purge' and transformation. The purge, according to announcements by party leaders, has been aimed at weeding out "anti-Soviet elements" and other "unreliables," who fail to adhere strictly to the Marxist-Leninist line. CUT JIEMBERSHIP The party also has been trimming down from mass membership to what it calls "a fighting cadre party," which could more easily seize and wield full powers.

I The postponement of elections in their zone also indicated the Russians would oppose holding new municipal elections in Berlin this October. The Socialist Unity party, which ran a poor third in the 1946 Berlin voting, already has indicated opposition to new elections here. Meanwhile, the Communists have been seeking to obtain control locally by splitting up the elected anti-Communist citv gov ernment and setting up va-ious administrations of their own. Sokolovsky, in a statement is sued through the official Soviet news bureau, said that in postpon ing the zonal elections, he was ac ceding to "numerous" requests from workers' and farmers' groups. Two new political narties recent ly authorized in the Soviet zone also formally had asked postpone ment in order to have more time to organize.

Sokolovsky said that if time were taken to vote now "the attention of the democratic organizations and the population in general would be diverted from a practical solu tion of their economic problem and the task of improving the general living standard." i He promised that the local elec tions would be held together with district and state balloting in the! fall of 1949. By that time the Communists should have advanced their two- year economic plan iar enough to have full control. Non-Communists have complained that the plan is designed to kill private enterprise, lquidate the middle class and com plete the "sovietization" of eastern Germany. MONK DROWNS SENDAI, Japan, Aug. 24.

UP) Brother Reginald. 43, of Montreal, Canada, and the Dominican monas tery here, and two Japanese seminary students drowned while swim Entire Insurance Office Is Moved to West Coast NEWARK, N. Aug. 24. Iff) Eight Pullmans and four baggage cars will make up a special train leaving Newark tomorrow to carry part of the Prudential Insurance co.

to its new western division headquarters at Los Angeles. Seventy-nine employes and their families, plus millions of records weighing 20,000 pounds will make the cross-country trip in the mass migration sponsored by Prudential. The new office in Los Angeles will serve the company's western policy holders. The shift is scheduled to be completed by I Sept. 8 without interruption of service to policyholders, the company announced.

Apartments for all 79 families making the westward movement already have been found and will be waiting for them on their arrival at Los Angeles, the company announced, Records being taken to the new western division office were to be kept up to date until noon today, then crated and put aboard the special Prudential train. The company said it expected to open the crates and have the records available, for resumption of business on Monday in the Prudential' new building at Los Angeles. Water Found Near Mojave As Desert Town Rejoices MOJAVE, Aug. 24. tav-They've struck water near Mojave! That's more important to this desert town than gold was 100 years ago or the recent uranium find near Beaumont, Calif.

Water has been the principal problem since Mojave was founded in 1876. 'It has leen bauled in by Southern Pacific railroad tank cars. It costs residents 25. cents for 1000 gallons about $10 a month to water lawns. Now one well has come in at Monolith, 12 miles away.

A few days ago' another began producing at 1000 gallons a minute on property five miles east of town owned by C. W. (Cy) Townsend, former Pacific $oast league baseball star. They're tesfing the water now. If it's satisfactory there'll be a town election ko authorize a bond issue to purchase one of the wells.

jj Water may mean a boom to Mojave, at least a less parched future. ing near Sendai Sunday..