The San Francisco Examiner from San Francisco, California • 1

i rt I TELEPHONE A fc? THE WEATHER Ran FrmnrlMO Bay Rr1i Partly Cloudy today and tomorrow. la Anitlra ud Vicinity Sunny today and tomorrow with lata night and aarly morning low cloudlnen and local fog. TEMPERATURES HI. Lo.l HI. to.

Pan Fran. 62 50lLoiAnC. 72 52 Oakland 65 BO Kan. City 69 4T Fruno 77 45Chlcago 73 40 8ac'm'ta 73 46NawTork 67 64 Complata wtather data oa Paia 32. YOUR WANT AD TODAY SUtter 1-2424 The Examiner rfffTI INK Jttottarthj jo 5 L.US 'S1 th tulus 1 Et 2-2424 SUH.r 1-2424 l.U..SAT,OrrV VOL.

CLXXXXIV. NO. 128 FINAL CCCC SAN FRANCISCO, TUESDAY. MAY, 8. 1951 DAILY 7.

CENTS. SUNDAYj 15 CENTSum c.S"tS mm NT I IP Elk WED EM Marshall Attacks M'A rthur Admits APPLIES FO LWLL1ES Lou Wolcher Given SYean and $10,000 Fine in Tax Case RETIHEMENTOESERT U.S. No Victory in Sight We Would Be Left Alone to Face Russ A-Bombs General's Action Linked to Split With Pentagon on Far East M'Arthur Told: 'Don't Bomb Lt. Gen. Albert C.

Wede- By ROBERT G. NIXON Staff Cormpondent Int'l Newt Servlr WASHINGTON, May 7. Examiner Reporter Staff Chiefs Switched Plea for Bail Refused meyer, who accurately forecast Communist deveopments! Reds' Base in North Korea' in both China and Korea in Wins Pulitzer Prize his long-suppressed 1947 re (Compiled from reports of port as a special envoy of President Truman declared tonight that Gen. MacAr-thur's policy of "go it alone" if necessary in the Far East might start a global atomic war, cost the United States all hternational News Service President Truman, yesterday Government prosecutors hit the legal jackpot yesterday when Lou Wolcher received a stiff sentence for income tax and Associated Press.) revealed that he has applied for retirement from the Army. WASHINGTON, May 7.

Bared Crime, Tax Link its Allies, and lay whole evasion three years in Fed The 53 year old commander of Defense Secretary George Marshall led off today for Price Curbs Hit Snag American cities open to "ter- the Sixth Army here, a sharp stroy Racin," the general testified. "Its usefulness to the enemy was self-evident. Great accumulations, depot accumulations, were mada there. The Soviets could run stuff from Vladivostok right down there. "I was assured by the air command that there was no possibility of crossing the Russian border.

It was well within the area, and had we bombed, we would have been solicitous to do so In clear weather so there could have been no mistake." rible destruction." the Truman forces in their dissenter from American policy The Chief Executive rejected in the Far East for more than eral prison and a $10,000 fine. He got a ten day respite from the penitentiary term, however. If Defense Counsel Leo Friedman can show good reason tomorrow morning, Federal District Judge Edward S. Montgomery of attack upon Gen. Douglas MacArthur's "win the war" policies in Korea.

five years, declined comment. completely MacArthur's demand for stronger air and sea support The Examiner is the winner But observers here and In of the 1950 Pulitzer Prize for Farm Bloc Fights Michael J. Roche agreed to free Marshall, defending the re of the Korean struggle to bring quick victory and choke off what distinguished local reporting, WASHINGTON, May 7. Gen. Douglas MacArthur was forbidden by the Joint Chiefs of Staff to bomb a major Communist supply center in North Korea, thirty-five miles below the Siberian border.

This revelation that Washington's ban on the general's recommendation to strike back at the Reds extended even to within Korea proper was made here today as parts of earlier censored testimony by MacArthur before the Senate committees were released. Permission to bomb the "great distribution center" of Raoin, on the northeast coast of Korea, was originally forbidden In a directive from the Joint Chiefs of Staff, MacArthur said, and then specifically refused again after he requested a fresh decision in view of changed conditions. "I was very anxious to de Washington surmised that his decision was closely related to moval of MacArthur, admitted Columbia University trustees Wolcher on bail pending an appeal. to the investigating Senate com the current situation in the the ousted commander called the "initiatory action" of World War announced in New York yester General Marshall, In his tes If Friedman fails, off Wolcher Parity Freeze By CHARLES B. SEIB SU'f Cormpoadrnt Int'l Newt Strvlca Pentagon and the White House, mittees that one of the chief reasons for MacArthur's ouster was fear that his statements He will not be 62, the statutory day that Pulitzer judges gave him the award for his exclusive series of articles exposing tie-ups III.

NOT NAMED goes next week to begin serving the term. Meanwhile, he remains In the county jail. Judge Roche curtly cancelled his bail after a retirement age for lieutenant gen WASHINGTON, May Truman's economic The President did not mention erals, until July of 1959. might alienate "our allies," espe cially England. jury found him guilty Friday of avoiding $30,276 in taxes for the general by name but he took timony today, confirmed Mac-Arthur's statement that permission to bomb Racin had been denied him.

The entire text of the newly released testimony, as as the text of Washington's reply to General MacArthur's recommendations for striking back at Russian intervention, will be found on rage 11. BACKS M' ARTHUR controls program including He went further and declared up almost point by point the var beef price ceilings and pro General Wedemeyer, an ardent that MacArthur's invitation to ious recommendations made by admirer of General MacArthur 1944. MAXIMUM FINE Judge Roche levied the maxi MacArthur in his Senate testi and an ardent exponent of the posals to regulate commercial rents and freeze farm parity met massive opposition today the Chinese commander to confer on a truce and MacArthur's hint of action directly against mony and forcibly opposed them. latter's plan for blocking Com munist aggression, has been men if mum fine for the offense, but could have made the prison term le argued, in effect, that refusal in both Houses of Congress tioned repeatedly as a prospei Red China had blown up nego tiations with those allies on a follow MacArthur's proposals five years. back at a "brother officer" in de of victory in Korea would be to Defense Mobilizer Wilson told tive witness in the current inquiry It took much of the day to get was the surest way to prevent an proposal that was to be made to fense of the conduct of the Ko.

rean war which he said was ap the sentence and assorted side the Senate Banking Committee that commercial rent ceilings are by the Senate Armed Services and Foreign Policy Committees. He Red China for a settlement of atomic war. inflict enough casualties on Chinese forces within Korea to make them willing to negotiate a peace. He conceded that present Allied forces could not drive the the Korean war. He did not ex issues settled.

When the 48 year old defend' has been out of favor with Secre President Truman promised proved by the Joint Chief3 of Staff and himself. plain just how or why MacAr tary Marshall and Marshall however, that if "the aggressor" a necessary anti-inflation measure but Jhairman Maybank, Democrat of South Carolina, thur's statement forced the ant appeared at 10 a. m. before the judge, Friedman briskly 'boys" in the Pentagon because Reds from Korea, and said there takes any new action threaten United States to drop the nego his report on China was in con was no likelihood of any sub tiations, but he hinted that the Ing the security of United Na moved for a new trial and for an arrest of judgment on the usual technical grounds. Both stantial reinforcements for the flict with Marshall's "abandon China to the Communists" recom strongly indicated that the proposal will be rejected.

disrupting factor was the furore tions forces In Korea "we will United Nations Army in that of criticism which that statement were denied. theater of war. stirred up in England and other counter their action." The President asserted, in DANGER TOLD mendations. Like all of the generals who served In the Far East during World War II he has been When the attorney progressed Nevertheless he expressed his Meanwhile, Price Stabilizer Di to the matter of possible leni countries. BRITISH ROLE- major foreign policy address de belief that even if MacArthur had been permitted to blockade sidetracked by the Marshall ency, Judge Roche commented: Salle told angry cattle state leg clique In favor of the Europe signed to answer MacArthur, that "we are determined to do our utmost to limit the war in islators and" meat Industry Perhaps unintentionally, Mar minded Bradley and Collins and shall made clear the role played spokesmen in a' House Agricul their followers.

Korea." President Truman said "I like to extend charity, but when any willful violator conies In here, I do not extend my charity." BLACK MARKET EDWARD S. MONTGOMERY Pulitfr Prit Winnft Photo by San Franciaoo Examiner. ture Committee hearing that It by England in blocking any retaliation against Red China out He has been relegated to that bv "fighting on a limited to beef price ceilings are removed rcbIa now. we may be able side of Korea and the influence Transcript Turn to Page 8 for the text in large part of Secretary Marshall's testimony. housekeeping job with the Sixth Army, despite the fact that he is between Federal Income tax offi prevent a third world war later "then our entire stabilization of British policy on the removal one of the most brilliant com The judge pointed out that the of MacArthur.

cials and the underworld. defense went far afield into Wol on." NO ACTION manders in the Army. AIDED PROBES Cher's past during the trial. As program is going by the board." Wilson was lead-off witness on Administration proposals for stiffening the present economic controls law which expires FEARFUL a matter of fact, Wolcher ad He emphasized that Russia has Corruption revealed by Mont and bomb China and use Chiang mitted the black market liquor Washington sources said top BROKE RULES He said while MacArthur never violated military campaign directives, he did violate orders against public statements. Further, he denied, as MacAr thur had suggested, that he or President Truman had overruled the Joint Chiefs of Staff in war plans which agreed in part with those proposed by the deposed general.

And he denied the administration is considering Red China's admission to the United Nations and the fate of Formosa as the basis of a Korean peace treaty. He conceded that he and the President were willing to "discuss" Formosa's future and Red China's admission to the United Nations, but not while there was a shooting war in. progress. Thus he left it open to conjecture whether or not the Truman Administration would make these concessions if ihe Communist withdrew from Korea. MacArthur has said that loss of Formosa to the Communists would open a break in this country's Pacifia defenses.

MacArthur told Senators the Joint Chiefs had urged against any consideration of United Nations membership for Red China and Formosa's future In Kai-shek's troops, the result dealings that were the nub of Army and administration offi atomic bombs, that the purpose of Soviet atomic attacks would be "to strike a death blow at our gomery Decame a major oasis for the last State Crime Commis June 30. would still be a stalemate. the Government's case. His de Indications are that President cials have attempted to persuade General Wedemeyer to abandon fense was that he didn't make sion report and the two subse cities" and that "Cleveland or Chi AIR ATTACKS (Continued on Page 7, Col. 5) quent investigations here by the any profit on them, and there cago.

Seattle or New York, or his retirement plans, fearful that in retired status he might be But he hinted this country will fore owed no tax. Kefauver Committee or tne any of great cities might be de A look at Wolcher's He admitted that the hasty ouster of MacArthur had been bungled through failure to get a message through to Tokio, and said that the decision to drop MacArthur had been speeded up twenty hours because he, President Truman, Secretary Acheson and the others who had made the decision several days earlier feared it had "leaked out." That was his explanation of why MacArthur's wife heard the news on the radio before the general was notified and why the general was forced to go without even a farewell to his troops or the people of Japan. come an outspoken critic oi me Truman 'Administration's foreign stroyed. Truman declared: seemed advisable, said the judge, United States Senate. Montgomery's work was factor in the subsequent indict hit Red China by air and sea if the Reds strike at American forces outside Korea, presumably those in Japan and with the and the hearing recessed until "We will not take any action policy.

Court Upholds $750,000 Verdict Against ILWU ment of four persons, including which might place upon us the This was assigned as one oi afternoon while Chief Probation Officer Albert H. Wahl thumbed Seventh Fleet off Formosa. the reasons for Army Secretary Pat Mooney, former chief field agent for the Bureau of Internal responsibility for Initiating general war." Pentagon sources said they through his files. Frank Pace's visit to the general's Presidio headquarters last Wahl came up with the follow Revenue 'n Reno, and Elmer "Bones" Remmei, the big The President's address to a national Civil Defense conference A $750,000 judgment won b'y Saturday. the Juneau Spruce Corporation ing docket on Wolcher: Arrested in 1938 for posses sion of slot machines and $10, interpreted Marshall's statement to mean that the United States would unleash an all-out retaliatory attack on Red China In event the Communists spread hostilities to United States bases.

Army spokesmen said action gambler. Acting on a tip that came di (Continued on Page Col. S) against the International Long He said the United Nations shoremen's and Warehousemen's rectly to him, Montgomery spent on the general's request could be deferred indefinitely because of the world situation. The same 000 vagrancy with the case dismissed. Drunk driving in Union was upheld here yesterday four months intermittently ai? was preparing an announcement of preparations to discuss a war settlement the announcement to The closed door testimony by Berkeley, 191, with a $200 fine, by the United States Ninth Cir spokesman explained that in ging into the background of ihe Mountain City Consolidated Cop President Acts In Panama Crisis PANAMA (Panama), May 7.

the Secretary himself a five star Contempt of court in 1943 for cuit Court of Appeals. general and onetime Army Chief peacetime such a request would receive almost automatic, routine Norman Leonard, attorney rep come from President Truman when MacArthur issued his state (Continued on Page 6, Col. 6) of Staff spotlighted the conflict per Company of Nevada, a con (Continued on. Page 6, Col 2 resenting the union, said the approval. (AP) President Arnulfo Arias ment on March 24 that he was ready to talk peace terms with No details were immediately Jet Bomber Blast ILWU and its Juneau, Alaska Local 16, would petition for a re hearing and appeal to the Su tonight abolished Panama's constitution and dissolved the Na Soviets Rushing of ideas that has been under way for months over the best way to wage the war In Korea.

Marshall came to the hearing by the Senate Armed Services and Foreign Relations Commit In Midair Kill tional Assembly, S3 preme Court if necessary. New Fighter Plane The judgment grew out of a The decree put into effect the 1941 constitution drafted during peace discussions and that ha understood that recommendation had been vetoed by Marshall Tonight President Truman en tered the fight again with a major foreign policy speech before a Federal Civil Defense dinner. It was his first formal speech since he ousted the general and touched off the bitter dispute over Asia policy. OUT OF TOUCH Deploring this "very distressing occasion," Marshall pictured MacArthur as a commander who Jurisdictional dispute between the ILWU and the International teesarmed with a big pile of NEW YORK, May 7. (AP) the Red commander In Korea.

view of the serious impact of General MacArthur's statement, on the negotiations of these nations," Marshall said, "It became necessary to abandon the effort, thus losing whatever chance there may have been at that time to negotiate a settlement of the Ko Arias' first term of office. It also directed that elections be Aviation Age said today Soviet Woodworkers of America over Russia has reached an estimated HOUSTON May 7. (INS) Three men were killed when an Air Force B-45 i bomber exploded in the air near Houston tonight. The fourth mr.n in the plane was blown clear and parachuted safely to the ground. The plane was on a routine flight from Barksdale Field.

held to choose a National As sembly ajid provincial legisla tures in the near future. the loading and unloading of barges at the corporation's secret documents. And whole chunks of his testimony were deleted by the Defense and State Department censors who are combing the record for security purposes before it is released to (Continued on Page Col. 1) Warner Baxter, Noted Actor, Dies BEVERLY HILLS, May 7. -(AP) Warner Baxter, 62, veteran motion picture actor, died at his home tonight after a long illness.

He had suffered from arthritis for years and a lobot-omy was performed three weeks ago to alleviate his pain. Bronchial pneumonia set in recently and hastened his death. monthly production of 160 to 170 of its lone ranee "Frontier Alaska sawmill. Arias' cabinet met in emer Fitrhter." the LA 17 plane de In April of 1949 the National signed by Semyon Lavochkin. Labor Relations Board ruled that newsmen.

The technical and trade maga Shreveport, to Ellington air gency session tonight to discuss the tense situation surrounding the midtown shooting affray last night between five opposition leaders and the secret po the ILWU had no legal claim to the loading jobs. In October of zine said the LA-17 has not been reported in action in Korea. 1949 the corporation shut down base when the plane exploded. The "-ash occurred 400 yards from the Ellington field. The surviving officer, a co It is regarded as "one of the rean conflict." ONLY HOPE Marshall made this statement after declaring that MacArthur's war plans would risk an all-out war with Russia, expose Europe to attack, and perhaps split the free world into two camps.

He admitted that the only hope lice The 70 year old Marshall struck had grown so far out of sym Tenney Bill to Guard Schools From Reds Passes Assembly and charged it had been the vie tim of an unfair strike and boy two or three roost Important air plane in the Red Air Force," the pilot, said there was no warning cott within the meaning of the magazine article added. when the plane exploded Taft-Hartley Act. The company sued and won. Willie McGee Dies in Chair After Losing Last 4 Appeals Cloudy Day Due in Bay Area; Little Temperature Change minutes earlier he jauntily sat in EXAMINER BUREAU. SAC-( RAMENTO, May a vote of 66 to 10.

the State Assembly today gave final passage to the Tenney bill providing for dismissal of any public school teacher who teaches Communism "with the Intent to Indoctrinate" any legislature Is not to prevent teachirg the facts about Communism, "but to prevent the advocacy of, and Inculcation and Indoctrination into Communism. Any teacher violating the law would be dismissed after convio tion by the school authorities. Assemblyman Ernest R. Ged- his Jones (Laurel) County jail cell and smoked a cigar and wrote his will while his head was being shaved. where.

Scattered showers are forecast for the ctremc northern mountains. From Chief Engineer Kenneth McSwain of the Merced Irriga He was pronounced dead at Index Ilerb Caen Page 21 Comics Page 28 Crossword Puzzle Page 19 Drama Pages 1S-17 Radio, TV Log rage 27 Editorials Page 23 Editorial Features 23 Financial rages 21-23 Shipping rage 32 Society rages 13 14 13 Sports rages 28-32 Vital Statistics Fael9 Want Ads rage. 32 39 Weather Page 32 General Kenney's Life of MacArthur Tage 16 Salvador Quakes i Continue: 1,000 Die SAN SALVADOR E1 Salva dor). May 7. (AP)-New earthquakes were reported in southeastern El Salvador today, in the wake of a devastating quake yesterday which killed approximately 1.000 persons in Jucuapa alone.

The new tremors were reported in the sities of Santiago de Maria and in Berlin, both in Usulutan department. Santiago de Maria was damaged by the first quake. It has a population of 20.000 and Berlin of 15,000. No casualties have been reported thus far in the second day's quake. 12:10 a.

m. by Dr. S. F. Carr, The San Francisco Bay area, struggling to bloom out in full spring dress, will be set back by further cloudiness today, the Weather Bureau said last night.

Little change in temperature Is expected, and there will be westerly winds of ten to fifteen miles per hour in the afternoon. Jones County health officer. LAUREL May 8 (Tuesday). (AP) Willie McGee, 37-year old Negro grocery truck driver, was executed early today, five and one half years after raping a white housewife in the bedroom of her home here. McGee died in the electric chair at 10 minutes after midnight, after losing four desperate appeals within his last six hours.

The execution ended a case that attracted international attention. McGee made no statement as he was led to the chair. Fifteen tion District came an optimistic report on irrigation water. He A crowd estimated as high as 1,000 persons crowded the court said the Exchequer Dam on the pupil with a preference for the ides of Pomona, who presented. Red philosophy.

the bill in the lower house, de- The bill- introduced by Senator clared that faithful teaching ef Jack B. Tenney of Los the facts about Communisrn had previously passed the sen-j would not be stopped and t.her ate. It now goes to Governor would be no interference with Warren. 'academic freedom. The intent of the measure is The teachers of California, stated in the text cf the bill, through their organizations, wer which states that the aim of the on record for the house lawn for several hours before the execution.

McGee was Merced River was overflowing twenty days carLer than last year. The dam has a capacity of brought to Laurel from Jackson For northern California, the at 10:05 p. m. and taken through the fringe of the crowd to the 2S1.200 acre feet and takes care of irrigation for the eastern half prediction is partly cloudy from Monterey and Merced north today and tomorrow, and fair else jail of the county. Canrit DBcait UJscd Car Prices: Sec Want iM! i.