The San Francisco Examiner from San Francisco, California • 1

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62 SAN FRANCISCO, WEDNESDAY, AUGUST 31, 1949 DAILY 7 CENTS. SUNDAY 15 CENTS ARSON DAD HAWAII LO ESVaughan Admits Aid Ml Ilk INVESTIGATESCOURT FIGHT Given to Tanforan ON PICK 13,1010 FI ETENG SPSS Hearing Today on Union Plea 23 Russ Renew Tito Blast 32 Hurt in Safeway Blaze; Called Worst in Years For Writ Against Dock Law HONOLULU, Aug. 30 LONDON, Aug. The Territory of Hawaii today lost its fight against a Federal court de cision upholding union picket An investigation into the possibility of arson in the mysterious $3,000,000 Safeway Stores warehouse fire opened yesterday. The five-alarm blaze, described as San Francisco's worst In terms of property loss since the 1906 quake and fire, virtually destroyed the chain grocery's huge Northern California distribution insr in the 122-day dock strike.

Furthermore, the court ordered hearings opened tomorrow on a union request for an injunction against Hawaii's dock seizure center for non-pcrlshables, at (AP) Soviet Russia tonight accused Marshal Tito and his lieutenants of being a bunch of boastful, malicious deserters, deceiving doubledealers and stooges of "western masters." The newest Moscow note to Belgrade, the eighth in the name-calling contest between the two Communist capitals, informed Tito and his supporters "they cannot expect courtesy and even less so respect from the Soviet Government." It described the Tito regime as 1950 Army Street. law. Counsel for the striking Thirty-two firemen were hurt five so seriously they were hospitalized in a three hour battle, to control flames so hot CIO International Longshore men's and Warehousemen's Union promptly announced it will put they melted steel fire doors. Lt. George Kelley and Inspec tor Jerry Murphy of the fire de.

Union President Harry Bridges 2,000 From Mar agon WASHINGTON, Aug. 30. (AP) Maj. Gen. Harry H.

Vaughan testified today that he collected at least $4,000 in Democratic campaign funds from John Maragon and a widely known racetrack figure both of whom received Vaughan favors. But he swore he did nothing wrong. He told Senators inves-tigatfng Washington's "influence industry" they could look at his bank account if they wanted to see whether he ever had profited personally. He even hinted that on at least one occasion his troubles may have been caused by someone impersonating him. 1946 CAMPAIGN Vaughan, who is President Truman's Army aide, said President Truman didn't know whit firms Vaughan was assisting.

It was during the 1946 campaign, Vaughan told the Senate investigations subcommittee, that he got $2,000 or $3,000 from William Helis, a multimillionaire oil man, race horse and race track owner who sought and got Vaughan's aid in getting a permit for scarce materials needed at the Tanforan Race Track in California. Vaughan said that he also got around $2,000 that had been collected by Maragon, Washington fixer-upper who Was interested in everything from molasses to perfume and who repeatedly sought and got Vaughan's help. COSTELLO The money, Vaughan said, was turned over to the Democratic partment arson squad, said last on the stand as its first witness, LAWYERS CLASH- a puppy "feeling so good she's iif i 1 The court yesterday ruled that picketing could continue and the barking at an elephant." IGNORES OFFER Full page of pictures of big- S. F. Safeway warehouse fire on Page 16.

Territory could operate the docks until a decision is reached on the The note made no mention of ILWU suit challenging the consti Jugoslav note of August 23 which tutionality of the dock seizure offered to settle the feud pro law. vided Russia clearly recognized night that their inquiry, started while the half-block structure still smouldered, has produced no clew to the origin of the iire. But that the Balkan state is determined to stay Independent in Counsel for the Territory and the union clashed when they met today to argue the wording of the court's picketing order before Federal Judges J. Frank Mc all her policies. Russia did.

not make further mention of the threat voiced in a Moscow note of August 19 to take Laughlin and Delbert E. Metzger, Deputy Attorney General Gar "more effective measures" for Murphy added: "There's no apparent reason why such a fire should have occurred. It seems strange that lt reached such a magnitude inside a building where a watchman was on duty and which had been inactive since June 16. It's a complete mystery how it started." ner Anthony, who had called the protection of Soviet citizens picketing ruhng "vague and In- alleged to have suffered brutal! definite," presented a specific order. ties in Yugoslavia.

SCOFFS AT NOTE It would require pickets at the waterfront to carry signs explicitly stating they were not The investigation will continue, Russia said the latest note was sent "not to convince the Yugoslav Government, which has pickets in a labor dispute but were exercising the right of free Murphy said. SOUNDS ALARM Among the strange circum nation does not "fall into the lap of the Soviet Gen. Douglas MacArthur (above) declared. IN THE FRONTLINE American forces must continue occupation duty in Japan to make certain that long been living without con. International News Photo.

speech. MONUMENTS' vicuons, ana works only on instructions of its western masters, but In order to unmask campaign in Missouri, Vaughan's stances under scrutiny is the discovery of the fire by a night watchman, John R. Bolts, 71, of 1448 Sixth Avenue. He reported home State, as well as the Presi The court's decision had said it and to help peoples of Yugo WAGE-HOUR ACT CABLE STRIKE M' Arthur Says U.S. Must slavia see the true face of the the ILWU could employ pickets as "monuments to free men," and dent's.

One of the investigating Senators, McCarthy, Republican of present Yugoslav Government. finding smoke coming from "a stack of cartons" brought in rne "western masters' were that they would not be pickets in a labor dispute. Wisconsin, asked Vaughan whether Maragon "at any time not named, but the Soviet press Hold Japan Indefinitely nflVFRABF GUT earlier in the day. He immediately ran to an alarm box 100 feet away but returned to find the TOMORROW Anthony disagreed. He argued has said that the Yugoslav Gov gave you money that he claimed was from Frankie Costello." that the pickets were "an eco- ernment is under United States entire center section of the building ablaze.

and British influence. Costello has been described by nomio weapon designed to hamper our operations." Ship crews in outer language tne new various, authorities as a bigshot Acting Fire Chief A. J. Ualli WASHINGTON, Aug. The Senate overrode Ad have been refusing to work pick Soviet note said that "every one racketeer, gambler and gangster.

called some 300 men and sixty-one eted ships when Government long. A stride tomorrow morning by AFL carmen on the California Street Cable Railroad appeared knows the Yugoslav Government Vaughan said Maragon never pieces of equipment to the fire, shoremen appear. ministration leaders tonight and voted to exempt from coverage has deserted from the camp of mentioned that he got any cam Because this left many neighbor socialism and democracy to the paign funds from Costello. of the Wage and Hour Law some Anthony declared the union would tell ship's crews the "free certain yesterday after the com hoods unguarded, the rarely used Senator McCarthy said the Islands Declared Key to Security Against Communist Threat in Orient This is the second of a series giving the viewpoint of Gen. Douglas MacArthur regarding Japan's vital role in the face 'of the Red menace in China.

By DAVID SENTNER workers now covered. Senator 10-3 alarm was sounded, sum pany rejected a union thirty day speech" pickets on the docks were money that vaughan collected was for use in the 1946 Slaugh- moning 600 off duty firemen to Pepper, Democrat of Florida, esti mated the number at 200,000. camp of imperialism (Rustia reported mailing troopi on Yugoilau border. Page 4, column Eal pickets. truce offer.

fill-in posts. Judge McLaughlin replied that ter-Axtel congressional primary The company notified the union Until mid-morning, long alter Anthony was trying to make the fight and subsequent election The Senate accepted by a 50 to 23 rollcall vote an amendment by Senator Holland, Democrat of wages would be cut from the the flames were out, a resulting court rule in advance on a situa campaign. traffic iam backed automobiles Representative Roger tion. He said if a situation arose either side could ask the court for Florida, to limit the number of up on Bayshore Highway as far D. Slaughter.

Democrat of Mis present $1.48 an hour to $1.36, effective Thursday. AM. DEADLINE Japan is America's security key to the critical as the county line. amplification of its ruling. souri, had been a foe of a num employers or retail ana service establishments covered by the act, Chinese Communist problem.

Police sent thirty officers into BOND ORDERED the area to unsnarl the tieup, In the face of a Communist China, the United ber of Truman proposals, and the President lent his support to Slaughter's opponent, Enos A. Charles R. Wood, president of THE WEATHER San FrnneNeo Bay Are Fstr today and tomorrow with mornlnB and night hlgb toft: little change in temperature. Im AngH and Vicinity Scat, tered high cloudiness and continued warm today TEMPERATURES HI. Lo.l HI.

1,0. San Fran, 68 S5II.o Anit. 91 66 Oakland 571 New York 84 67 Fresno 99 651 Kas. City 87 6S Sac'mento 96 SSI Chicago 80 61 "ompltte weather data on page 14. The vote was taken at a night complicated by hoses extending The court then accepted the States must control Japan or have its neutrality session held in an effort to speed to hydrants blocks away.

Axtell, in the Democratic union draft of the picketing or final action on a bill to hike the guaranteed to keep it out of the hands of the boviet The hieh-shooting flames, ieea der with one exception. The union the Carmen's Union, answered: "That being the case, the cable cars will cease to operate at 1 a. m. Thursday." present minimum wage of 40 ing on 300 carloads of groceries, Axtcll won, but was beaten In draft provided for no bond. The Union.

cents an hour to 75 cents. A few including dry cereals and vege the election by Republican Al- court ordered ILWU to post a Japan must now be occupied indefinitely by table oils, spread so swiftly they bond. American forces. Under the order, the ILWU ate through the roof berore tire, men could erect ladders. Explod minutes later, a recess was called until tomorrow.

A bill to boost the wage floor already passed by the House includes an amendment identical Wood said the carmen voted unanimously for the walkout. A mass meeting has been scheduled is allowed to picket docks where This historic concept for a new Pacific strategy ine cans of food rocketed hun Senate Trims Arms Aid Fund To One Billion; GOP Victory picketing is exercised as a right of free speech protesting the dock dreds of feet in the air. the forging of Japan as America's front line against the threatened expansion of the Chinese Eed with that offered by Holland. seizure law and not as a part of Under Holland's amendment, a (Fire called wont here the labor dispute. flood was outlined to me by lien, Douglas 1906.

Page 9, column 1.) (Continued on Page Col. S) By CHARLES B. SEIB Staff Correiipondent Int'l Nr Sf rvlre (Hawaii hat critical meat and butter thortage. Page 2, column 4.) WASHINGTON, Aug. 30.

The Another Warm Day Due Situation Now Changed administration reportedly ac Edwards Workers I had asked the military hero of the Pacific how cepted today a GOP-sponsored Here; Fair This Weekend Senate compromise trimming pro Jane and John Public, could be made to understand Get 4 Cent Raise CIO steelworkers voted last posed arms aid to Atlantic pact that events in faraway China might mean so much to them and their country. countries to ope billion dollars. at the Labor Temple for 1 a. m. Thursday, he said.

Federal Conciliator Andrew Gallagher, who presided at the final meeting of both sides Monday, said no further negotiations are scheduled. '130 AFFECTED About 130 men are affected. The strike would stop cable service on the California, Hyde and Jones Street lines. The dispute began six weeks ago when the union asked for a 2.6 cents an hour pay increase to give cable carmen parity with Municipal Railway employes. The -company countered with the argument that it is losing money and cannot continue to operate unless wages are reduced.

The temperatures in San Fran- 1.1-. The action, which represented lion, 450 million dollar arms aid bill. The one billion dollars remaining for pact countries would be split evenly between cash and contract authority, it was said. The agreement purportedly would leave the Administration free to earmark some of the funds for retooling European war plants. The House has already approved legislation providing 5S0 million for Atlantic pact aid.

It was believed that the law finally approved will provide a Cisco yesteraay were sngnuy The general made it clear he was speaking un victory for Senators Vanden night to accept a four cents an hour wage increase from the Edwards Wire Rope Company in South San Francisco, ending a ninety-one day strike. above the normal for this time of officially, an over-the-lunch-table conversation. the year and may go a little berg, Republican of Michigan, and Dulles, Republican of New York, apparently cleared the way for speedy action on the entire He had believed several years ago that Kussia Federal Conciliator Omar Hos- higher today. Cisco, 75 in Oakland, 92 in San Mateo and 90 in San Rafael. Skies will be clear except for patches of early morning fog.

A five-day forecast issued by the bureau predicted fair weather for northern California through next Sunday except for increasing coastal fog, with temperatures above normal until the weekend, when they are expected to fall to the average levq', would consent to the signing of a peace treaty with The peak was 68 at 3 p. m. as Japan and that by this time American troops could "arms-for-friends" program on the Senate floor. compared with the average daily maximum figure for August kins said the 150 men also were granted six paid holidays annually, an employer-paid health plan and improved vacations. The have been withdrawn.

The reported compromise would of 65. sum somewhere between ins slash $160,000,000 from the At The Weather Bureau forecast a "The face of the Japanese occupation has been (Continued' on Page 4, Col. 1) agreement is effective until May 3L 1950. House and Senate versions. lantic pact section of he one bfl-i high for today of 70 in San Fran-,.