Evening Star Newspaper, May 31, 1940, Page 6

A—6 weww Warship Construction Tie-up Is Threatened By Strike of 6,000 Federal Shipbuilding Workers Demand Wage Increase By the Associated Press. KEARNY, N. J, May 31—Six thousand workers went on strike to- day at the Federal Shipbuilding & Dry Dock Co., halting work on six warships included on the United Btates’ rush defense program. Among $46,000,000 in naval con- tracts held by the company are a cruiser and two destroyers on the ways, two destroyers in the fitting basin and a cruiser on which only preliminary work had been done. Also affected by the strike were three cargo vessels and two tankers, Plant Picketed. Strikers picketed the plant while their leaders, who had argued against thc walkout, negotiated on their behalf with company officials. The men are members of Local 16, Industrial Union of Maritime and Bhipworkers of America (C. 1. 0.). John Dempsey, local president and national vice president, said he had opposed the strike, but now “fully sympathized” with the action taken. The naval work was ahead of sched- ule and would not suffer, he said. No statement was immediately forthcoming from the management, but Dempsey said the company had agreed to close the plant today and meet with union delegates for fur- ther negotiation. A 10-cent an hour wage increase and an annual week’s vacation with pay were asked by the strikers whose contract expired Wednesday night. Dempsey said the union had re- Jected a company offer of a 21; to 4 cent an hour increase. The pres- ent scale of pay ranges from 6213 cents to $1 an hour, it was stated, Leaders to Support Action. Dempsey, who said he was joined in opposing the strike by John Green, national president, and Wil- liam J. Carney, regional director of the C. I. O, asserted leaders would support the men despite their | independent action. Officials Here Predict Early End of Strike By the Associated Press, John R. Steelman, chief of the| Conciliation Service, expressed the | opinion today that the wage dis- pute threatening to tie up naval ship construction at the Federal Shipbuilding & Drydock Co., Kearny, N. J,, “will be settled very soon.” Mr. Steelman said P. W. Chappell, { & Federal mediator, had been in con- ference for several days with the company and representatives of C. 1. O.s Industrial Union of Marine and Shipbuilding Workers. “We thought as a result of con- ferences,” Mr. Steelman declared, “that we had at least a temporary | adjustment worked out yesterday. ‘We were greatly surprised by the union’s vote to strike.” | Mr. Chappell, he added, was con- | tinuing to contact the parties in the dispute today in an effort to bring about a speedy settlement. Quick End of Strike Seen by Secretary Edison By the Associated Press. Saying “We cannot afford to have trouble of this sort in these times,” Secretary of the Navy Edison pre- dicted today speedy settlement of the strike at the Federal Shipbuild- ing & Drydock Co. The Secretary made his prediction shortly after the White House was | advised by Secretary of Labori Perkins that a Federal mediator was on the scene and that she expected & report soon. “Both management and labor, I feel sure,” Mr. Edison said, “are | patriotic gnough to realize that we | cannot afford to have trouble of this sort in these times and will un- doubtedly seek a quick settlement of their difficulties.” John R. Steelman, chief of the Conciliation Service, also expressed the opinion that the strike threat- ening to tie up naval ship construc- tion would be settled “very soon.” Taxes __(Continued From First Page.) outgo and income, but that the re- sponsibility for expenditures is in the separate Budget Bureau. The Secretary added a “sincere hope” that the defense program will put | more idle to work, and thereby per-? mit reduction in Government spend- | ing for unemployment. Administration men on the com- mittee sought to show that Govern ment departments can spend onl: what Congress gives them. Mr. Treadway pointed out, however, that Congress looks to the executive branch for suggestions and recom- mendations. Representative Knutson, Republi- can, of Minnesota, inquired what appropgations Congress has made ! that were not asked by the adminis- tration. From the other end of the rostrum another committee member sug- gested the parity price fund for farmers, which was not in the Presi- dent’s budget, and Mr. Morgenthau mentioned that under ‘coaching from the bench.” “That was only a couple of hun- dred million,” Mr. Knutson replied, and asked if that was not in line with the administration’s aim to Taise farm income. | Pressed by committee members on the economy angle, Mr. Bell testi- fied it is not possible to meet the present deficit by economies, unless Congress wants to eliminate func- tions. | “The maintenance of a Treasury working balance approximating the present one,” Secretary Morgenthau testified, “is distinctly in the interest ——— for LATEST NEWS The Night Final Star, containing the iatest news of the day during these dramatic times, is de- livered every evening throughout the city and suburbs between 6 P.M. and 7 P.M. Telephone National 5000 for immediate delivery. | essential. | should be accomplished. | individual income taxes 10 per cent age in search of victims. of economy and financial strength and is especially to be desired in the troubled world of today.” Sees Both Steps Essential. Noting that the tax measure pro- vides for a $3,000,000,000 increase in the Federal debt limit, to make it $48,000,000,000 he asserted: “The orderly financing of Federal expenditures, expanded as they are by emergency expenditures for na- tional defense, requires provision of additional taxes or an increase in the limit on the national debt. “In my judgment both steps arel The Secretary declared he was | “convinced that the public is willing | and ready to accept the personal| sacrifices of paying the additional | taxes that are necessary to provide the country with adequate national | defense.” 3 Secretary Morgenthau said Presi- dent Roosevelt’s budget message of | January 3 anticipated a deficit of $1,716,000,000 to be financed by bor- | rowing. $3,703,000,000 Deficit. “Since that time,” he added, “events have taken place that make | necessary expenditures for national defense that far exceed the amounts provided for in the 1941 budget. “On the basis of appropriation bills which have passed and those which are now pending in Congress, the Treasury and the Bureau of the Budget estimate that a deficit of the fiscal year 1941 will amount to $3.703,000,000.” began his testimony, Committee Chairman Doughton expressed be- lief the bill increasing corporate and and also boosting excise levies would not “unduly or seriously” burden business. - He asserted that at a later date the committee would consider “a complete revision” of tax laws. As detailed study of the defense tax bill began, administration leaders virtually ‘abandoned hope that Con- gress could adjourn by June 15— their one-time deadline. Senate Majority Leader Barkley said it “will be July 1 or after” be- fore the members get away. House Leader Rayburn -expressed the opinion that the combined defense EXTRA-EXTRA SPECIAL! CASHEWS AND BRAZILS MIXED 49:, THE PEANUT STORES 705 15t St NW. (Betw. Peoples Drug and 'n I o (Oppesite Woedward & Lethrop) P OPEN EVENINGS & SUNDAYS TERROR LIVES ON AFTER DISASTER—Fear and sorrow are written in the faces of these girls as they stand near a church. Thousands were left homeless and property damage was great. — e -Just before Secretary Morgenthau | — THE EVENING STAR, WASHINGTON, D. C, FRIDAY, MAY 31, 1940, CALLAO, PERU.—NOT WAR BUT NATURE DID THIS—This scene of devastation was caused by an earthquake May 24 which razed or eracked almost every bullding in this seaport. shocks in the area left more than 300 dead and 2,000 injured. Rescue workers dig in the wreck- A serles of —— A. P, Wirephotos. and tax programs could be enacted by June 22. Mr. Doughton's measure, intro- duced late yesterday, would pro- vide, generally, 10 per cent in- creases in corporate and individual income taxes normally payable next March 15; 10 per cent increases in most excise taxes and greater in- creases in the levies on such articles | as whisky, wine and beer. | While there was almost unanimity | on the question of raising new taxes | to finance the defense program, | Arms (Continued From First Page.) airplanes but also in guns and small arms. The most industrial section of France where new factories had been established after the last war is once more either in the hands of the Germans or under the threat of their guns and airplanes. Consequently in order to continue the struggle they must immediately obtain, where possible, such imple- ments of war which they need most. Neither the British nor the French factories, although working 24 hours a day, can supply everything their armies need. Not a single European country in sympathy with the Allies has surplus war material. The British intend to increase their army substantially in the course of the next few months. In order to train and equip that army the present surplus of American arms—rifles which are not used in the United States Army—are essential. The Allies cannot understand why at this hour of need the Government of the United States refuses them the sale of these weapons. It is true that the American fac- tories are not producing enough for the American Army yet. But it is pointed out the United States Army is using at the present time the Springfield rifie which is of a dif- ferent pattern from the Lee Enfield. It is argued that the National Guard might use these weapons for train- ing purposes. This they consider, however, of secondary importance compared with the urgent need of the Allied armies at the front. Furthermore, the ruling of the War Department makes it possible for any other nation, except the bel- ligerents, to purchase these discard- ed arms. . A War Department spokesman in- dieated that the present amendment to the 1920 law was taken to pre- serve America’s neutrality .in the spirit of the provisions of interna- nearly all the members of Congress | § had their own ideas of how that Byrd Seeks Economies. Some wanted to increase the new tax program to $4,000,000,000 in view of President Roosevelt's decision to ask for another billion for defense. There was considerable Senate sentiment for broadening the in- come tax base, but its chief advocate in former sessions—Senator La Follette, Progressive, of Wisconsin— said he had not decided whether to sponsor such a plan. Senator Byrd, Democrat, of Vir- ginia proposed a 10 per cent cut in all Federal expenditures except those for defense and for meeting fixed obligations, such as interest on the public debt. He drafted an amendment to the $1,111,000,000 relief bill which would make such a cut effective after June 30 He estimated that it would reduce Government costs $500,000,000 a year. + WMAL_ | Listento...630 K. NEWS BROADCASTS TODAY 12 (noon)—H. R. Baukhage 12:55 p.m.—European News 3:00p.m.—War Commen- tary 3:55 p.m.—AP News 5:00 p.m.—Evening Star Flashes 5:45 p.m.—Lowell Thomas 6:45 p.m.—European News 9:00 p.m.—John Gunther :25 p.m.—European News 11:00 p.m.—European News 12:00 p.m.—European News 1:00 a.m.—News TOMORROW 7:00 a.m.—News Here and Abroad 7:25 a.m.—European News :30 a.m.—Earl Godwin 10:00 a.m.—News 11:25 a.m.—European News WMAL 630 on Your Dial Washington’s Leading News Station brings you headline news— Y LAY as it happens. D. C. Soap Box Derby Champion to Meet Wilbur Shaw Winner of 500-Mile Auto Races at Indianapolis Will Be at Akron ‘Washington’s 1940 Soap Box Derby champion will be moving in fast company at Akromn, Ohio, this August. One of the celebrities he will meet will be Wilbur Shaw, win- ner yesterday of the 500-mile auto- mobile race at Indianapolis. Shaw own the Indianapolis cham- plonship last year when the national Derby finals were held, and he served as an official at the finish line in the coaster races. Carl Ce- derstrand, jr, 1939 Washington winner, had his picture taken with him. This,year’s Derby champion will have the same opportunity, since Shaw yesterday won the speedway classic for the third time. Champlons will be on every hand at Akron, however, Boys who sur- vived eliminations run off in citles in nearly every State will be there to compete for the grand prize—a four-year college scholarship. Each one of them will be a champion, and each will receive treatment due a winner. D. C. Champion to Get Watch. ‘When the Washington champion arrives he will receive a gold wrist- watch engraved with the Soap Box Derby emblem—this in addition to all the prizes he will have won in his local race. He and the other city champions will be guests at banquets and will be given trips to ball games and otherwise enter- tained. A steadily growing entry list in- sures a large field in the third Washington Soap Box Derby, spon- sored by The Star and the American Legion. With the school year rap- idly drawing to a close, more boys are expected to turn to Derby racer building in preparation for the big race to be held here July 13. Boys between 11 and 15 vears old are eligible to enter the race. En- trants must build miniature coaster | cars themselves, according to di- mensional restrictions outlined in the 1940 official rules, and no car is allowed to cost more than $10. Contestants Must Register. To be entered on the Derby rolls, registration is required. Go to the Chevrolet dealer nearest your home | and ask to be enrolled in the Soap Box Derby. You will receive ap- plication blanks and a safety pledge, which must be filled out and signed by you and by one of your parents A rule book will be given to you at the Chevrolet dealer. There are 11 Chevrolet salesrooms in Wash- ington, Alexandria and Arlington, A PAIR OF CHAMPS—Carl Cederstrand, ir., 1939 Washington Soap Box Derby champion, is shown with Wilbur S8haw, winner yesterday of the 500-mile Indianapolis Speedway race. picture was taken at the Akroi Shaw was a race official 1039 Derby. Continuing the exhi- bition tour begun last week, the racer was to be shown at George Washington High School in Alexan- dria, Va., from 12 o'clock until 1:10 p.m. today, in the stadium back of the school. From 2:45 pm. until 3:30 pm., the car was to be on display on the stage of the auditorium at the Thomas Jefferson Junior High | School in Arlington, Va. Monday, | the exhibition will be continued with stops scheduled at Gordon Junior High School from 12 o'clock | until 1:10 p.m., and at Hine Junior High School from 2:45 pm. until 3:30 pm. Garnet-Patterson Junior High will be visited Wednesday dur- ing the noon lunch period and the following day a stop will be made at Shaw Junior High School from 12 o'clock until 12:30 p.m. Derby entrance applications for five more boys were cleared through Soap Box Derby haedquarters at The Star today. They are Raymond Burke, 4, 714 Thirty-second street Va., and Bethesda, Silver Spring| S.E.; Donald Phillips, 14, 1301 Ridge and Hyattsville, Md. place S.E.; Robert Pierce, 14, 507 Virginia boys today were to have | Third street SE.; William M. Siegel, the opportunity of inspecting the!'1ll, 1001 G street SE. and Roland speedy white racer which voung | Sisson, 15, Route 2, Oxon Hill, Md. Cederstrand drove to victory in the (Watch The Star for Derby News.) tional law. At the White House Mrs. Harrison Dies nothing was known of this inter- ATLANTA, Ga., May 31 (#)—Mrs departmental order and it was stated | Mable Allyn Harrison, wife of N. C. that if the Army board considered | Harrison, vice president of the At- that these weapons could be dis- posed of there was no reason why |She was the former Mable it should not be done. RESERVED FOR FLORSHEIM: CHOICEST SKINS OF THE COOLEST LEATHER KNOWN lantic Steel ‘Co., died here my. re Allyn of Norfolk, Va. 14th & G The n Derby finals last year, where —A. P. Photo. Communists Arrested In Belgrade Outburst By the Associated Press. BELGRADE, May 31.— Several Grant Leaves Philippines For Baltimore Post By the Associated Press. MANILA, May 31—Maj. Gen. George Grunert took over command of the Philippine Department of the United States Army today, succeed- ing Maj. Gen. Walter S. Grant, who sailed immediately for San Francisco aboard the United States Transport Grant. Mass air flights featured a military demonstration marking the change of commands. Gen. Grant is en route to Balti- more to assume command of the 3d Corps Area. He is a veteran of the Philippine service, coming here first in 1901, in the early days of American occupation. Clipper Touches Bermuda NEW YORK, May 31 (#).—Pan- American Airways reported this morning that the Yankee Clipper, bound from the Azores to New York, had put into Bermuda and would arrive here this afternoon. The change was believed due to bad weather. Soap Box Derby Rules The 1940 Soap Box Derby, sponsored for the third year by The Star and the American Legion, will be held July 13 for boys living in Washington and in nearby Maryland and Vir- ginia. The Derby is a race for boy-built coaster cars, which must be constructed within a cost limit of $10. The winner will represent Washington at the national finals at Akron, ©Ohio, in August. These rules are your guide for the third WASHINGTON SOAP BOX DERBY: 1. Eligibility—The Derby s open to boys of Washington and vicinity between 11 and 15 years old. A boy having his 16th birthday anniversary on the day of the race, or before, is not eligible. A boy who does Communist demonstrators were ar- | rested today after staging a noisy | weicome when Vasily Lavrentieff. ! | Soviet Minister to Bulgaria, arrived | | to exchange documents with the | Foreign Office ratifying the Soviet- | Yugoslav trade treaty. | The demonstrators shouted: “Long | live the Soviet Union! military alliance!"” i | Strong police squads dispersed several groups and took the leaders into_custody. | Official circles confirmed a report | that a Yugoslav minister to Moscow | would be named soon. Luxembourg Residents |Form Legion in France | By the Associated Press. PARIS, May 31—Little Luxem- | | bourg, taken over by German troops | | the first day of the invasion of the | Low Gountries, is forming a legion in Prance to fight back. The Luxembourg Legation in Paris | called on'all citizens or military age |in France to join and ‘“contribute | as much as they can to the success | of the Allied cause.” One mill in Kaifeng, China, is producing 3,600 bags of flour daily. Give us a NOT have his 11th birthday anniversary until after the day of the race is not eligible. Members of the immediate family of employes of The Star, the Chevrolet Motor Co., deal- ers or employes of dealers will not be permitted to race. 2. How to enter—Sign your entry blanks and safety pledge and get your rule book at the salesroom of the Chevrolet dealer nearest your home. There are dealers in Wash- ington, Alexandria and Arling- ton, Va., and Silver Spring, Hyattsville and Bethesda, Md. You must be accompanied by one of your parents or your guardian, who also must sign the entry blanks and safety pledge. (Read The Star for Derby News.) Attention! Derby Racers! Build your own racer with official “Flying Eagle” parts! The People’s Hard- ware Store in your neigh- borhood carries everything you'll n the complete o e 'G§6A00 Peoples Hardware Stores 11 Handy Stores. or call Line. 10430 FLORSHEIM Genuine While PBuuckshin Of all fifie leathers only Genuine Buck- skin is 8o porous you can act ually blow through it...Of all Genuine Buckskins, Florsheim uses only the unmarked, perfect hides, and the shoes made from them must meet the world’s most exacting standards of qual ity work- manship. The result: styles beyond imitation ... coolness beyond compare. Genuine White Bucksk in Styles $10.50 Most regular Styles $8.95 and $1(0.50 TRI-WEARS In White Buckskin 5.95 HAHN 7Tih & K 3212 14th 4483 Conn. Ave Open a TRIPLE-THRIFT Charge Account Ask Any HAHN Salesman for Details.