The Knoxville News-Sentinel from Knoxville, Tennessee • 1

Me i HOME EDITION Ssnsd by Unit'd Prau AuodotadFranScrlppi'HmiardUaMd NEAStrvIct Unlttd Prtu TtWphoto Pkturai ESTABLISHED ISSUE No 22851 KNOXVILLE (2) TENNESSEE FRIDAY EVENING JULY I 1955' PRICE FIVE CENTS 24 PAGES iepiriis Ad-bun CsnmeD 1DY deeded 0 a A NtA Meet' tmm a stomp AGC Halts Work Strike Building in Area 15c Pay Boost Ends Shortest Steel Strike All Expected To Sign Quickly Senate Group Funds for D-Y Line Plant at Momphis Would Block Uso Ktwa-RtnHart WnMmtaa hwa WASHINGTON July 1 Memphis Forces Reappraisal By MARSHALL McNEIL Mart WmMsiW CswQrtiat WASHINGTON July President Eisenhower has in effect ordered cancellation of the controversial Dixon-Yates contract as a source of power for Memphis The reason is the decision of Memphis to build Its own gleam-electric generating plant" Traffic Cuts Chances of Living to July 5 15000 AFL Craftsmen Off Jobs Wages Called Issue of Walkout Br AwartsM Fiona PITTSBURGH UT Corp St Steel 1- the July and The Senate Appropriations Committee today recommended the allocation of $8500000 for the TVA-Dix-on-Yates transmission line but only on the basis of two contingencies It refused to strike the appropriation completely from the MIL It said instead that the money should not be spent if within 90 days the City of Memphis makes a "definite commitment" to supply its own power needs And then it said that the money should only be obligated when the Dix-on-Yates plant if built is financed and cons traction has begun The committee also recommended an over-all increase in the TVA appropriation of $839000 The bill the PuMie Works MU also includes $575000000 for operating expense! for the Atomic Energy Commission and funds for the Bureau of Reclamation and rivers and harbors work The money bill totals about $1 876- See SENATE 2 Col 4 CIO United Steelworkers today agreed on a 15-cent-plus average hourly wage boost to end the shortest nation wide strike in the steel labor history The Wage-Policy Committee gave a cheering whistling ovation to union President David McDonald McDonald personally negotiated the wage pact in nearly night-long talks with John A Stephens vice president and chief negotiator for Steel The walkout began at midnight last night but the settlement was expected to set idle mills and fumacei back into operation in quick order Work Tuesday Expected Other major steel firms were expected to quickly fall in line with similar settlement agreements with the prospect that the prospering steel industry would be back humming in full operation by Tuesday morning following the Fourth of July holiday However union leaders said picket lines would be maintained outside struck steel plants until agreements at each company Baa Picture ea Page I Millions of dollars worth of area construction was halted or slowed today when most of some 15000 AFL craftsmen struck after their wage contracts expired at jnidnight last night No picketing or interference with union groups not affected by negotiations with Associated General Contractors is planned said A Galyon business manager Building Trades Council which bargains for the strikers Conciliator Hitchcock said he ia keeping in clou contact with both aidea However there were yet no plans for another get-together session until after the holiday week end To See Baseball Some leaders on both sides pert scheduled to be out of town ever the week end Many of the strikers showed up early at construction offices to pick up their pay checks Normally they would have gone to work at 7:30 a "They all appear to be for their checks" reported Goddard project manager on the U-T Hospital construction "A lot of them say they're going to Cleveland and -Cincinnati -mid contract ended Details were not made public So far as could be learned no AGC workers were on constructions under contract to AGC contractor-members The AFL panted out that AGC crafts could work for any contractor who met the new wage demands No contractor had announced such an individual agreement Offered II Cents aa Hoar Wages are the only stalemated issue in the month-long bargaining it waa reliably reputed Moat of the eight crafts involved were offered a 10-cent-an-hour hike according to the report The affected AFL crafts are Carpenters Brickmasons Millwrights Ironworkers laborers Teamsteis Operating Engineers- Specifically Ike Budget Director' Bow-land Hughes to confer with the Atomic Energy Commission and the Tennessee -Valley Authority to "determine whether it is in the interest of the 4 of the Memphis area to continue or to cancel the Dixon-Yates contract' It is widely believed that he would not have made puMie tMs unless cancellation were to follow Cancellation To many observers here such cancellation has seemed the prudent and Inevitable diing to do In the face of action It haa been widely urged upon the President by congressmen and in newspaper editorials But Mr Eisenhower's action announced without any prior hint at the White Howe at 7 last night was nevertheless a major surprise because the Dixon-Yates issue had become so lm- bedded in RepuMlcan politics -One high AEC official told this reporter this week that he considered Memphis' action "just another maneuver" and that AEC would not take another look at the D-Y contract ordered to do bas now Been given To Begfa Promptly Hughes told this reporter last night that the conferences with TVA-and AEC would begin Sea D-Y 3 COLL Vogel and Paty Team Up In Vote TVA Board Chairman Herbert Vogel now believe the Dixon-Yates power plant ia not necessary to supply power to the TVA i He indicated this view in Ms vote yesterday on foe resolution against the need for Dlxon-Yates which was formally: adopted by the TVA Board Only Gen Vogel end Dr Raymond Paty voted on the resolution The third board member Dr Harry Curtis is vacationing out of foe city Dr Curtis and Dr Paty have opposed the Dlxon-Yates contract all along Gen Vogel previously spoke favorably of it Is the text of the letter dated House which TVA Chairman Bureau Director Rowland Hughes or canceling the Dlxon-Yates transmitted to you copies of a telegram June 23 1955 from Thomas Light Gas and Water Division end Ms telegram and letter Maj Allen Memphis Board of City of a generating plant of sufficient City of Memphis We replied to decision power planning that Memphis would handle its between the city and TVA Allen and Mayor Frank Tobey construed Maj Allen's letter it is Memphis' intent to provide meet the power requirements of that they are proceeding to that end a renewal of its present contract in June 1958 city it will no longer be necessary to-Hughes I jf n-n on Issue or Power Contract and Cement Masons Liquor Seized in 40 MorifCars Arratts To Start Officers Warn were signed and sealed The formal agreement between Big Steel and the union waa to be signed later this afternoon The union planned to meet immediately with officials of five other major steel producing companies for expected negotiation of identical IVcent wage Increase agreements These companies are' Bethlehem Republic Jones Laughlin Youngstown Sheet Tube and Inland SteeL Price Rise Immlneat -The agreement undoubtedly means an Increase in the price of steel Steelmen laid before the negotiations started that any wage increase would result in an increase In the nice of steel Basic carbon steel hat been selling for about $125 a ton -Steelmen here for negotiations had no immediate comment when the steel price increase would go into effect or how much it would -McDonald was wildly cheered See 15e WAGE It Col 1 Highway Hazards An Bad but Other Accidents Also Can Result in Death The long Fourth of July week end begins tonight end your chances of staying alive behind the wheel are slim mer than ever 1 Five years ago there were about' 48500000 registered vehicles in the United States Today there are 59000000 Of these an estimated 40000- 000 will be on the move during the three-day week end rolling up more than 3000000000 miles of travel The National Safety Council said today that in audi heavy traffic a driver ia never more than a second away from an accident estimated that he must make 20 to 50 decisions an and a wrong one can be fatal But accidents behind the wheel are not the only danger WMle 340 persons died in traffic accidents last July 4 week end 189 others died for drowning Fireworks once the cause of many deaths killed four persons Make Frequent Stops Motorists who are planning a long holiday trip might well heed the advice of a Washington drive long-distances without making stops Writing in a publication of the American Medical Association Dr Carl Potthoff points out that three-fifths of the driving defects leading to accidents are far tigue and falling asleep One-fifth of the drivers Involved in fatal accidents are out-of-state residents he said but In vacai time the proportion is much higher who set long mileage schedules for each day usually are fast drivers" Dr Potthoff said is the leading cause of traffic accidents and aa it increases the injuries are greater in case of accident' Vacation Crashes Moire Difficult He noted that accidents occurring far from home cause more difficulty than others You must deal with garagemen doctors lawyers and police officers Moreover injuries may require a long stay at the local hospital It may he necessary to summon distant relatives- Police or civil action may require a return some months later Ned Dearborn president of the National Safety Council has laid down a set of simple rales to follow for your Fourth of July trip from beginning to end' you're driving somewhere start early and take it he said be in too big a hurry to get there- Remember your trip ia to a relaxation and pleasure Car Doseat Go Out af Control legal and common sense speed limits and keep your car under control at all times A car does not go out of control unless the driver loses his control over it Slow down at sundown and hold down your nighttime speed so you can stop within range of your lights you arrive don't overdo Avoid endurance contests on the golf course in the water or at the oars of a boat Overexertion la doubly dangerous in hot weather "If you're going swimming wait an hour after eating and know the depth of the water Never swim alone If you go boating avoid horse- play and be cautious In changing seata Get back to the dock before darkness or bad weather If your boat should capsize cling to it and wait for help" Finally said Mr Dearborn when returning from your holiday to stay alive" 3 Councilmen OK Traffic Study Friodman O'connor McHan at Mooting City Council is expected to seek the advice of a South Carolina firm of consulting engineers employed by Memphis in a traffic study Councilman Max Friedman chairman of the Council manic committee to study traffic problems said yesterday he would seek the -firm's advice on the proper approach to the study the cost etc if a majority of Council favored the plan Only three councilmen showed up for the meeting at City Hall yesterday to lay groundwork for the study Mr Friedman Nicholson McHan and John O'Connor Those three approved seeking advice of the consulting engineers Mr Friedman said he would contact other councilmen by phone to be sure a majority approved the plan "I'm not going to let this thing drag" Mr Friedman said' After waiting 30 minutes for the colleagues to appear the councilmen decided not to hold an official meeting for lack of quorum No other meeting date was set Also present were representatives of the city engineering department Traffic Chief Joe and Traffic Sgt Robert Jenkins In a recent National Safety Council report Knoxville was ranked 39th in traffic safety among 55 cities of comparable size Boy Slips Off Tube Is Drowned is AaatfaM Phh CLEVELAND Term July Ernest 7 was drowned yesterday In a small stock pond in Hughes Lake community southeast of here Companions said WASHINGTON July Here yesterday and released by the White Herbert Vogel wrote to Budget concerning the question of continuing power contract "Dear Mr Hughes letter of June 28 we and confirming letter- both dated Allen president of the Memphis of our reply of June 28 1955 In advised TVA of the decision of the Commit-tkmers to proceed with construction capacity to serve the needs of the Maj Allen that in the light of this would proceed on the assumption own load when the present contract expires in 1958 response to my letter Maj have advised that TVA haa correctly and telegram of June 23 and that the generating facilities needed to the Memphis distribution system and that the city will not seek with TVA when the contract expires "Because of the decision of the for TVA to plan capacity Installations to meet the load requirements of the Memphis area' Since the Dixon-Yates plant was proposed as a source of supply for the Memphis load the city's action eliminates the possibility of using its output In the Memphis area the city's and the transmission costs involved and other factors would make it impracticable for TVA to utilize Mississippi Valley Generating Go power elsewhere on the TVA system We believetherefore that no arrangments between the Atomic Energy Commission' and the MVGC should any longer be predicated on the use of foe MVGC plant as a source of supply to TVA A formal resolution with regard to this matter waa adopted by the TVA Board today and a copy is enclosed for your information (Signed) "Very truly yours Vogel of the Board" Text of TVA Resolution 'Here is the text of the' resolution pissed yesterday by the director! of the TVA as released by the White House: the budget program for fiscal year 1955 which was submitted by TVA to the Bureau of the Budget included provision for the construction of a 450000 kilowatt (team plant on the Mississippi River-near Fulton Term and the size and location of the proposed Fulton plant Spirt! Th Haws iwius BRISTOL July Alcohol Tax Unit officers stopped 40 cars carrying liquor from Virginia into Tennessee-yesterday and last night The liquor was seized One car waa also confiscated Officers have been watching cars at the state-owned liquor store in Abingdon Va Then they radio ahead the license numbers of cars heading for Tennessee The arrests were made mainly at Bristol and Kingsport ATU investigators warned that starting today persona bringing Virginia-bought whisky into Tennessee are being arrested and charged with hauling unstamped whisky The action follows a twmday grace period during which most violators were merely warned a person ia caught with more than two gallons of out-of-state whisky in his car the car will be confiscated regardless of his said Virgil Newman assistant chief ATU investigator said -Officers win take similar action later along the Kentucky and North Carolina borders Mornur nsnuit'm 12:30 a 1:30 a 2:30 a other places to see sane major league baseball over the week I Plumbers At C-T Hospital Job Atomic Energy Commission reported some 1300 about half its construction force were idle However housing -and other pri-vate constructions employ an ad ditional several thousand at the Ridge Unions dealing with subcontractors instead of AGC were till on the job for the most part These include electricians plumbers roofers and painters Plumbers were working at the U-T hospital project hut electricians were out the job office aid i AGC craftsmen were idle at both the new Rich's main-store and service building constructions Batson A Cook the contractors said main-store work is at-a phase where the only AGC men used for the time are carpenters and laborers and those were idle: But subcontractor workmen were busy as usual there 1 Disposal Plant Slightly Affected Aside from installations such as electrical equipment the city sewage disposal plant is mostly completed and it was reported not greatly affected by the AGC stoppage Nicholson Co contractor on the Scottish Rite temple construction said that job was at a standstill along with work at Knoxville College and other Nicholson projects here and at Oak Ridge' There was unofficial talk among same contractors of suspending construction for two weeks if a settlement reached immediately after the holiday week end or eariier However they were speaking as individuals and declined to be quoted No such AGC decision had been retched so far as could-be learned Painters Complete Talks One non-AGC union Painters Local 437 about 500 strong completed contract negotiations with painting and decorating contractors last night just before the old a a a Ed-ington -'t- -a Jo Jo Says: Getting Stickier IF ITS TRUE THAT MOSQUITOES CAN FLY 48 MOURS WITHOUT LANDING THEN WHy DONTYrtl Youth Drowned as Car Goes in Water SrHMhM JELLICO Tern July Jim-my Ray Lewis 20 Jellico waa drowned here yesterday when the pickup track in which he waa riding went out of control and plunged down an embankment throwing Mm into backed-up water at a strip mining operation Highway Patrolmen said the accident occurred on grsvei-cov-ered Indian Mountain road just west of here Gary Dale Tyree IS driver of the track escaped youths riding in the truck were thrown in but were rescued only slightly injured are Harold Johnson 15 Brown 13 both of Chug Rigsby Believed Critical A (Chug) Rigsby 65-year-oU retired assistant fire chief suffered a seizure at St Mary's Hospital near noon today and waa the water believed to be in critical condi- tion A battery of doctors and nurses worked with him- administering oxygen injury Two other bed of the tlw water They were The two and Finley Jellico North Carolina Picks Pigeon River Route were determined primarily by the power requirements of the electric distribution system of the city of Memphis in Shelby County Tenn and the arrangements between MVGC and the Atomic Energy Commission were subsequently proposed instead whereby power purchased by the AEC would hie delivered to TVA near Memphis and "Whereas the City of Memphis has advised TVA that it will not accept power generated at the MVGC plant and therefore will proceed with its own generating plant to supply the requirements of the Memphis distribution system in Shelby County and that upon the expiration of its present power supply contract with TVA in June 1958 it will not seek a renewal thereof and Whereas in planning future additions of generating capacity it will no longer be necessary for TVA to make provision for the power requirements of the Memphis area and the location of both the proposed TVA plant at Fulton and the MVGC plant were determined on the basis of the requirements of the Memphis load and neither plant could now be used for that purpose and It would be Impracticable because of the transmission distances involved and fa other reasons to utilize MVGC power elsewhere on the TVA system be it resolved that the Bureau of the Budget and the Atomic Energy Commission be advised of the facts and conclusions set forth Inside THE WORLD TODAY Page 8 EDITORIALS' Page 14 WOMEN'S NEWS Pages 10-1L SPORTS Pages 16-11 SHOE'S RADIO-TV Page 15 1-Herman he slipped off an inner tube on which he had been floating Funeral home attendants said the boy eon of Mr' and Mrs Ernest was pulled from the pond by one of several children who were with him but that he never regained ratacaat Wmttfi Has aa Paw IB knoxveLle oak RIDGE AND MIDDLE EAST TENNESSEE: Fair to partly cloudy tonight and tomorrow Little change in temperatures Slightly more humid tomorrow Chance of isolated afternoon or evening thundershowers in the mountains Low tonight 64 high tomorrow 90 low this mailing 63 high yesterday 89 Outlook for Sunday continued mostly fair with little change in temperature Station barometric pressure 2914 Inches (rising) and relative humidity 80 per cent at 7:30 a WT LE CONTE: Law this aigmfeif to bish trSay State Roadblocks To Check Licenses NEWS-SENTINEL WANT AD DEADLINES For Tho Holidays a an RALEIGH July The interstate highway system between Western North Carolina and Tennessee win follow the path of the Pigeon River instead of the French Broad River the North Carolina Highway Commission has decided The Pigeon River route would be built tram a point near Waynesvffle and enter Tennessee near Newport The ejmmission voted 0-3 in favor of the Pigeon River route after hearing its chief engineer EL Rogers Jr and chief locating engineer Getty Browning recommend it over the French Broad route Snipes of Asheville that further surveys be made of the two routes before a decision was reached Rogers had told the commis tlon he felt highway engineers had made study and every survey this commission would expect" and had readied the conclusion the Fkench Broad route was feasible" for the proposed dual lane superhighway He estimated the Pigeon River road could be built for $15000000 and the French Broad routs for $2LOOOOOQ Route Called Superior Browning had said he felt the Pigeon River route is to any route along the French Broad and that further surveys would only this The Pigeon River loute would from follow existing highways Statement consciousness ir rn4 rrt NASHVILLE July 1-State Safety Commissioner Lut-trell said today the State Highway Patrol will set up roadblocks throughout the state tMs week end to check licenses! Train Derailed night I Sr Fwa TENXESSEE-KEXTOCKT FORECAST: Trtnptratara will arr la to four Srfnva atm normal iNv nal ho la 1SI Littl Sat-Mat chain Fair wsathcr moot a( tho umn tat wiSrtjr Kitlwrt aftrrnooa nra-Wl thunder shown Tmai rsia aaa-third ol aa mrii or la LAKE SIACES I Here is foe text of the statement issued by the President's Press Secretary James Hagerty: the direction of the President the White House today made puMie the following letter from Herbert Vogel chairman of the Tennessee Valley Authority Administration has consistently advocated the development of power facilities through local initiative and operation wherever possible President many months ago recommended that the city Memphis develop its own power plant to supply the needs of the people of that area for electric energy In the absence of any action by the city to accept this responsibility the Federal Government made the necessary plans to provide adequate power facilities for the Memphis area foe light tf foe notification by the City of Memphis to the Tennessee Valley Authorty the President has requested foe di- Eads Laag Caatrewny Whether the Federal interstate 11 A Satarday Shy aftenow It (Nooa) Satarday for Sudsy Edition Ads for Monday must he ordered before 5 JO Saturday The Want Ad Department win be closed all day Monday July 4 but the Obituary Department wffl be open from 5:30 to 10 pi Sunday for Pqer Dial 3-3131 Ad Headquarters' Luttren said Patrolmen will WATSEKA III July 1 At place emphasis" on i least one person was killed and checking licenses of 14-and-15-( some 25 were injured today when yearokl driven to make sure a Chicago-to-Evansville passen-they are obeying requirements of! ger train was derailed in Iro-their licenses that they drive only quoit County some 70 miles south to church the grocery or toof Chicago State Police Don Lehmaan aid uni- said a conductor on the train North to the Tennessee line The French formed headquarters personnel was killed Three persons were and: Asheville to DeHwood via Canton thejOyd- and Lake Juiwduska and French i then follow a new road part of'achooL of jwMch ta now under construction! The commissioner system between Asheville Knoxville should follow Pigeon River or the Broad has been the subject controversy In Western 'Carolina for several years After hearing from Rogers and jBrowning the commission first I voted against a motion by 13th Division Commissioner route would ran along or and Lcense examiners reported in serious condition near the existing 70 and 25 win join regular Patrolmen in pa-j Scene of the derailment was from Asheville to the Tennessee trolling state highways (hiring the 13 miles north of Watseka at Urn via Marshall and Hot July 4 holiday week-end period the north edge of foe village of Springs I beginning at 6 tonight iPapineau now to continue or to cancel the Dixon-Yates contract".