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Salt Lake Tribune: Tuesday, April 26, 1949 - Page 1

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   Salt Lake Tribune, The (Newspaper) - April 26, 1949, Salt Lake City, Utah                                RADIO NEWS am am pra Intelmountain Network Monday Throneh Friday WEATHER Fair little change ia temperature Details on Page 14 VOL 159 NO 12 Basing Point Price Ban Again Upheld Supreme Court Splits 44 Deals Harsher Blow Against System WASHINGTON April 25 UP supreme court Monday dealt a second and harsher blow to the widespread practice in industry of quoting identical prices iii all parts of the country The tribunal by a 4 to 4 tie vote upheld a federal trade comj mission order outlawing the so called basing point system even when no charge of agreement among competing firms is in volved A year ago the court struck down the system in a case in which it found an understanding or con spiracy to determine prices There was no immediate indus try reaction to Mondays decision May Speed Action But businessmen complained the 1948 decision cast doubt on the legality of the whole pricing sys tem Many had hoped the court would overturn the FTC in the followup case One effict of Mondays ruling may be to speed congressional action on pending bills either to declare a twoyear moratorium on basing point cases or specifically legalize freight absorption in the absence of any finding of a price fixing conspiracy The case decided Monday in volved an FTC order forbidding steel conduit makers from using the basing point system Averaged Out Charges Under the basing point method a manufacturer averages out freight charges in figuring the selling price of his goods He then quotes uniform delivered prices re gardless of how far his products must be shipped to reach buyers The court announced the tie de cision in a 23word order which said Justice Jackson had taken no part in the case SALT LAKE CITY UTAH TUESDAY MORNING APRIL 26 1949 VtREPHOTQ Miss Coplon Arrives for Trial Judith Coplon 27yearold former justice department employe arrives at U S district court in Washington for trial on charges of Russia Offers To Weigh Blockade Lift Asks Big Four Talks To End Barriers Surrounding Berlin LONDON Tuesday April 26 5s Russia today offered t lift the Berlin blockade before a Big Four meeting on th German problem if the west era powers would set a date for such a session The official Soviet news agency Tass said the offer was made by Soviet security council represen tative J A Malik to U S am bassadoratlarge Philip Jessup The offer if given as stated would represent a major Soviet concession and could overcome the major stumbling block in previous negotiations to lift the blockade of the former German capital Previous negotiations both in side and outside the United Na tions have broken down over the question of timing The western powers have insist ed that the blockade be lifted be fore a Big Four meeting The Russians heretofore have been adamant in insisting that the foreign ministers meet before they woul dlift their restrictions on transportation The Soviet announcement came on the heels of Monday nights dis closure in Frankfurt that German antiCommunist leaders and the western military governors of Ger many had reached agreement to rush formation of a separate west German state Opposed West State Russia has long opposed forma PRICE FIVE CENTS Leighton Stuart Chinese Reds find ambassador In bed U S Navy Withdraws Fleet From Shanghai By long 4 to 4 de cisions of the high court affirm the rulings ofthelower courtThe vote of the individual justices on such ties is never madeknown The decision Monday grew out of a federal trade commission rul ing that the use of the basing point system by a group of conduit manufacturers and sellers was an unfair method of competition and violated the federal trade com mission act Denied Conspiracy Ex Justice Aid Loses Bid To Kill Spy Indictment WASHINGTON April federal judge Monday rejected a defense motion to throw out one of twqindictments against 27ysar Cpplbh former Justice department employeas her es pionage trial opened Judge AlbertReeves ordered the trial to go ahead after Defense Atty Archibald Palmer shouted This girlnever gave a single thing to anyone connected with any foreign N T Espionage Charges Miss Coplon is accused of plotting tc passU S defense The conduit firms in appealing secrets to a Russian agent She is to the supreme court said sach Iajso under indictment on espionage acted independently without any agreement or conspiracy with each other Further they said there was no price discrimination I The conduit case is a follow1 up to a supreme court decision of a year ago The court at that time upheld a commission order requiring major cement producers from continuing a common course of action understanding or con spiracy to sell cement under the basing point system Attorneys for the conduit firms emphasized that while each com pany knew the system was used by others there was no agreement or conspiracy among them to do so conspiracy charges in New York Congress to Act The conduit companies said the affect of the commission order was to prevent each manufacturer from successfully competing for business in a territory in which another manufacturer has a freight advantage Regional mo nopolies are bound to develop they said with staggering economic consequences After the cement case decision extended congressional hearings were held on the question of prin ing policies A bill pending iri the senate would legalize freight ab sorption or equalization if no price fixing conspiracy is involved Decision Spurs Utah Industry Representatives of Utah indus try Monday viewed the supreme courts antibasing point decision as a signal for a speedup in ac tivity to enact legislation clarify ing legality of various pricing systems Ames K Bagley executive sec retary Utah Manufacturers Assn said members of the organization would go along witn a morator ium on the basing point decision pending clarification of the mat ter by congress to set forth a busi nessmans rights Bills are pending in congress which if passed would declare a twoyear moratorium on basing point cases or specifically legalize freight absorbtion in absence of any finding of a pricefixing con spiracy James A Richardson manager Utah Mining pointed out that adoption of a fob mill pric ing basis by industry would not immediately afreet mines since the smelters are our markets However if smelters find the Slav Congress Tagged Red Fifth Column WASHINGTON April 25 UP spy hunters were told Monday the AmericanSlav con gress is a most dangerous fifth column intent on communizing Americanborn Slavs so they will cripple our national defense The accusation was included in a formal statement to the activities com mittee behind closed doors by Blair F Gunther Allegheny Par a county court judge He later handed the statement to reporters Run by Moscow First president of the Slav con gress when it was founded in 1941 to push the air effort and chair man of its board from 1942 to 1944 Gunther said lie got out when the organization was cap tured by Communists He said there is every evidence it now is run by Moscow aim is primarily military sinceits chief aim is to subvert millions of Slavic Americans op erating in our basic industries in order to cripple our national de fense apparatus he said Gunther was the first of three heard by the committee as it began its first fulldress investigation since it was reorganized by the new Demo cratic majority of ths house in January Palmer contended that the Washington indictment should be dismissed because nine of the 17 it wire governmentemployes The defenselawyer said govern ment employes serving oa a 1ury might be fearful of losing their jobs for disloyalty if they voted against the government in a case in which a federal worker was ac cused of disloyalty Cites Congressional Act Judge Reeves ruled that a 1935 act of congress makes government workers eligible for jut duty in the District of Columbia He noted that federal judges are paid by the government and yetare sworn to be impartial During his argument Palmer said Miss Coplon has ah explana tion to make He did not elabor ate Miss Coplon a tinypertnosed brunette repeatedly took notes as the trial began Her defense is expected to be based on a contention that she was merely getting material for a po liticalromance novel when FBI Ram VS Protest Doum Reds9 ThroatsConnolly WASHINGTON April 26 GW Tom Conhally D Tex said Monday night a State de partment protest should be rammed down the throats of Chinese Communists who in vaded the American embassy in Nanking Its a serious affront the chairman ofthe senate foreign relations committee told a re porter Theyve go to learn to respect United States rights and property The State department ordered the U S embassy to lodge a vigorous protest with Commu nist leaders Monday soon after it was reported thatarmed Com munist troops had forced their way into the building and routed Ambassador J Leighton Stuart out of bed Truman Plan tion of a west German state In a statement datelined Mos cow and distributed in London Tass said J A Malik the Soviet delegate to the United Nations security council had given Rus sias view to the u S delegate TY TT 1 1 Dr Philip C Jessup at the U N ti flf If fl March 21 J Ml In Washington the state de partment said it would have no immediate comment to make on toe Soviet announcement Soyjebview was that the western occupation authorities must V their counterblockade of the Soviet oc cupation zone and the Soviet sec tor of Berlin Tass said Talks Started Feb 15 Tass said the Soviet and U S delegates to U N started talks Feb 15 as the outgrowth of tele graphic interviews between Soviet Prime Minister Josef Stalin and J Kingsbury Smith general Euro pean manager of the International News Service stationed in Paris The two delegates had their last talks April 10 NEW DESTINY agents who had been trailing her or some time seized Miss Coplon and Valentine A Gubitchev 32 in New York on March 4 Gubitchev a Soviet engineer was then an employe of the United Nations He was suspended when the case broke and has since been held r2il in default of bond The Washington indictment does not specify espionage conspiracy as do the New York charges It charges that over a thee month period last winter Miss Coplon stole certain extracts and summaries of reports of the FBI known as data slips con taining intelligence reports relat ing to espionage and counter espionage activities in the United States West German State Agreed FRANKFURT April ern Germany is speeding toward the foundation of a new state and a new destiny Monday night After nearly six hours of de bate envoys from the parlia mentary council and the military governors of the western powers agreed upon disputed points of a draft constitution for a German federal republic Holloweyed and weary Gen Lucius D Clay United States military governor announced tri umphantly all differences be tween the occupation powers and the Germans and among the Ger mans themselves have been re solved and a constitution is ex pected to be approved by the par liamentary council by May 15 Copyright by N T Times Begins Test WASHINGTON April 25 Legislation designed to put about 120000000 Americans under Pres Harry S Trumans compulsory health insurance program started down a rocky road in congress Monday Sponsors introduced the admin istration Bill in the senate and house They said it would ear mark about a year to finance the Insurance plan to provide medical dental and hos pital care eyeglasses hearing aids andother services Employes pay checks arid employers pay rolls would be taxed to pay for jt Other Phases Included The omnibus bus also would carry out the other phases of the health program which Mr Trumar outlined to congress last week Those included Federal grants for medical edu cation public health services hos pital construction general medi cal and child life research and an Mcperimental program of grants to farmers health cooperatives None of the 10 sponsors of the to estimate the overall cost of the U S INVADED Chinese Reds Rout Aids Of Embassy NANKING China April 25 UP Twelve Communist sol diers invaded the United States embassy Monday and entered the bedroom of Ambassador J Leigh ton Stuart The Communists entered the building at am and after visiting the kitchen to ask the number of Chinese and foreigners employed in the house asked Wheres the ambassador They proceeded upstairs to Stu arts bedroom where he was lying halfawake Point to Articles They pointed to the things in Stuarts bedroom and said These will soon belong to the people In Washington the State de partment announced that Stuart lad been called home from China for consultations and that this may be the signal for a round of discusions on the nations current Tiarids off policy in The Communists also visited the oom of Embassy Secy Edward Andeberg in the same building a arge structure within a residen ial compound on Shanghai road Visit British Embassy Later theCommunist troops the British embassy but lid not enter the compound They asked the gate keeper how many foreigners and Chinese were inside and left Stuart who speaks fluent Chi nese has one of the best collec tions of Chinese art treasures in China amassed during fas many years in the country as an edu cator and missionary The walls of the embassy are LONDON 25 nung with priceless acrolla soroe IS her fleet in China ot themthousands old while valuable Chinese curios are displayed on tables and wall racks The embassy in a compound with other official residences is about two mtles from the chan cellery where the offices are lo cated The house on top of a hill is surrounded by a stone wall with steel rails The entrance iSrthrough an iron gate past a guard and up sresidents program In fact Sen Elbert D Thomas D chairman of the senate labor and Hiblic welfare committee told a news conference Cant Estimate Cost You just cant estimate it right now a steep driveway toa portico Peace Parley Votes Setup To Fight War PARIS April 25 World Peace congress Monday night de cided to establish a permanent organization on cpminform lines to fight theUnited States in Acts to Avoid itrapment Urges Americans to Flee SHANGHAI China Tuesday April 26 United States navy began the evacuation of Shanghai Tuesday amid indications that Chinese Communist armies had opened a ful drive against the citys only outlet to the sea The U S S Eldorado flagship of Vice Adm Oscar C Badger commanding US naval forces in the western Pacific was first to start down sailed at am EDT All U S naval craft in the Whangpoo river except the hos pital ship Repose werescheduled to up anchor before noon 12 mid night EOT for the voyage down river to the Yangtze The Repose will remain here to take aboard any of the 2273 American civilians desiring to be evacuated Seek Naw Anchorages Naval said the vessels would move to new anchorages about 50 miles away in the Yangtze to avoid possible entrap ment and any recurrence similar to last weeks Red bombardment of four British warships in which 44 British sailors were killed Increasing indications that Red troops last reported in iorce within 80 miles of the city were consolidating for a possible flank ing action against Shanghai to at tack Woosung Its only outlet to the sea were believed to have spurred the decision to withdraw Woosung is about four miles down river and must be passed to reach the broader Yangtze estuary Demand Aggressors Leave The withdrawal came Communist soldiers were reported o have invaded theresidence of U S Ambassador J Leighton Stuart in Nanking and the Bed radio demanded that the United States and Britain remove all Ag gressive forces from Cfiina Naval sources the Redainues iSfiHa jgSS across the Yangtze east ofNan Wng in endless were cpnsohdatinr ftSohrfroniAfr8m Hupu on theriver to a newt Just above Soochow preparatory to vheelwg east and southeast to ward Woosung Hipu is about 50 mires Shanghai in the vicinity of EushanSoochow is about 50 miles West of Shang Gen Chu Teh Urges Chinese halt aid to Chungkingregime British Bolster China Meet AvoidTrodble propaganda war The 2000 delegates at a closing session voted unanimously for t The sponsors did calculate the ost of the national health insur ance program at about 000 a year Even the backers of the bill said there is scarcely any chance congress will get around to final action on it at this session resolution fpr creation of a world wide committee which will carrv on agitation against actions vhich menace1 the peace or in fringe on national independence For six days speakers at the Communistsponsored meeting have declared that the Atlantic pact and Truman doctrine are menaces to peaceand the Marshall plan a violation of the indepen dence of the countries participat ing in it EVTERMOUNTAIN PLEASERS Red Spy Activities It is ainied at finding out what role if any the Slav congress and the powerful United Electri cal workers CIO and their members and officials played in Pro Baseball Debuts Tonight By PHIL McLEESE Tribune Sports Editor Professional baseball sports chief medium for development of closer relations among states 01 See Pnje S Celeron 11 troit Communist spy activities The other witnesses were Harry Alan Sherman former attorney for several U E W locals and a mystery witness described only as a former Serbian Communist Com mittee members said the exCom munists name was withheld for his protection The spy hunters said both the Slav congress and the union would be an ideal cloak1 for Commu nists The U E W is strongly or ganized iri several critical indus tries The congress has its great est strength in key industrial cen ters such as Pltstburgh and De the intermountain area makes its 1949 debut Tuesday night in four Utah and Idaho communities The class C Pioneer league or ganized in 1939 will stait its sev enth year of operation on that day in Salt Lake City Ogden Idaho Falls and Pocatello The league did not operate during the war years Schedule of Openers The schedule Twin Falls at Pocatello Boise at Idaho Falls Billings at Salt Lake Great Falls at Ogden Appropriate openingday cere monies have been arranged at the four cities Dignitaries who will make brief appearances include Gov J Bracken Lee of Utah who will throw out the first ball at the BillingsSalt Lake game Start ing time for all games is pm Opening series continue through Thursday The home clubs get new foes Friday for the start of new threegame series Boise will go to Pocatello Billings to Ogden Great Falls to Salt Lake and Twin Falls to Idaho Falls Home games will be played at Twin Falls on May 2 at Great Falls May 3 and at Boise and Billings on May 5 Forecasts of cool weather and nothing more than cloudiness in the two states assure capacity crowds in all four cities The league drew in excess of 800000 fans last season second highest n the nation among class C cir cuits and with increasing stability of the Pioneer loop that attendance mark probably will be exceeded this season Predicts Record Jack P Halliwell of Pocatello wha has served as president since he leagues inception predicts rec ord crowds Halliwell also said hat a shrvey of spring training amp activity indicates that the eague as a whole is better bal anced than it was in 1948 and hat a better brand of baseball hould result Following a typical class C pat tern the league with the exception of a sprinkling of veterans will present new faces Only two man agershave returned to the clubs they guided last season They are Rupert Thompson at Salt Lake and Charles Metro at Twin Falls Defending Champions Only other returningmanager is Walt Lowe who was with Boise last season This year he will handle the defending champion Po catello club New managers are Herman Schulte at Ogden Johnny Babich at Idaho Falls Billy Stenger at Boise Joe Bowman at Great Falls and Larry Shepard Because of the thorough house cleaning conducted by each club on its 1948 personnel task of se eding a favorite has been shunned throughout the league Observ ers have concluded however from spring training camp news that both Ogden and Boise will require considerable bolstering before they measure up to standards of the other teams Picture Kuss as Friend American warmongersand leaders have been pictured as the chief opponents of peace and Rus sia as the true friend of peace A manifesto adopted by the con gress demanded the outlawing of the atomic bomb and a boycott of all books films press and per sonalities considered to favor prop aganda for a new war The permanent committee roster included many persons prominent in Communist or leftist circles Committee Includes Utahn Eight Americans were listed They were O John Rogge former assistant U S attorney general who said Saturday he was not a Communist Howard Fastthe writer who was defended by Rogge iri 1947 in a contempt of congress case Albert Kahn the writer Dr W E B Dubois Negro educator Paul Robeson the Negro singer Donald Henderson a labor leader Mrs Gene Weltfish and Rt Rev Arthur W Moulton of Salt Lake City waterspout intends to avoid any new clash with janntshmg Com giunist armies sources said Monday The informants said two aircraft carriers and a group ofsubmariras will be sent inforce the two cruisers eight de stroyers and four sloops already Stationed fat that British crown colony said only that reinforcements were beinj sent but gave ho details Preparefor Stona J As Prime Minister Clement Attlees cabinet prepared to face hoiisa of commons storm over the poundingof British warships by pomnunist guns alongthe Yangtze river above Shanghai officialsources gave triis additions information The warships are beingsent safeguard Britains communica tions with her Hong Kong colony is ho present intention to send troop reinforcements to Hong Kong because the move might be construed as provocative i i British Ambassador Sir Ralph Stevensonwill try to reestablish effective working relations with the Chinese Communist leaders now iii the former nationalist capitalof Nanking ChnrchlU Seeks Statement The cabinet held a special meet ing Monday to consider the par liamentary criticismto be voiced Tuesdayover the Yangtze inci dent Winston Churchill Conservative leader has asked thegovernment for a statement and may call for a full dress debate hai Skirmishing Begins A telephone report from Soo chow early Tuesday said prelimi nary skirmishing had begun seven miles northwest of the city be tween redeployed Nationalists aad Red columns drivuijTaown from Chmkiang city which two days ago was undefended and to the Reds was said to be an armed camp While the threat to Shanghai and its teeming refugeeswollen millions mounted hourly other oramunist troops were reported rying to snap shut swo traps annies half of then at the other half at Hankow in central China Communist lesder Mao Tze ung and commanderinchief dm Mi issued a proclamation over he Peipmg radio callingon the eople of China to give every assistance to the advancing Red orces and to maintain order until they arrive The Red radio broadcast an editorial by the Communist New China news agency saying Ask Troop Withdrawal The aggressive military forces of Britain must be wthdrawn See Page 4 Column J DRIVE FOR WAR Halt Red Tide or Face War In East Chennault Says Informed of his appointment to a permanent committee of the World Peace congress Rt Rev Arthur W Moulton retired Epis copal bishop of Utah said could not say whether he would accept This ia the first I have heard of It he said Monday night I dont know anything about the committee I am not in the habit of accepting membership in some thing I dont know a about SAN FRANCISCO April 25 GenClare L Chen nault declared Monday that events in the far east are driving us into a third world war far more surely and swiftly than events in Europe and said it was time for the United States to accept leadership in worldwide Communist resist ance Speaking at a formal press con ference at the San Francisco Press clubthe wartime Flying Tiger commander said if trie present trend in China continues you peo ple oh the Pacific coast can be sure that a thirdworld war will begin with the Pacific dominated by the Communists Pacific Menace Rises A new military and economic menace has rjsen in the Pacific farmore powerful than the men ace of Japan which we fought in the Pacific war to eliminate he declared Chennault said the whole trag inything edy of China 5s the result of our I own blundering f Mincing no words in his usual direct manner the veteran China hand said it was tune for the United Statesto discard stiff necked theories and be proudly defensive about the blunders to the blunders have been proCommunist or proNa tionalist Unite on Program It is time to unite on an Amer ican program of flexible Ingenious improvising practical same kind of action we used to reverse disaster in Pacific he said I have seen It a lot worse for us in China and in the Pacific than it is now And I have tu turn aroundandwin Chennault declared flatly that he was not being paid by the Na tionalists to come hert and plead their cause but was appearing only as an interested He said he was willing to talk th anyone in Washington who wants hiii But he Mid hf has no WashihjtoH scheduled as yet   

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