I Svffii* Served Sy^ wi™ I ryTnr ASSOCIATED PRESS I UNITED PRESS ■ With Complete Coverage ot 1 ______ Htau uni National New* I VOL. 78.—NO. 279. - y. f ESTABLISHED 1867 I Will Visit U. S. Russian Marshal Gregori Zhukov, Soviet member of the Allied Con trol Commission in Germany, will arrive by air in New York City, Oct. 4, and will then go to Washing ton to see President Truman. The Chief Executive, who met Zhukov at the Berlin Conference, personal ly invited the Russian commander to visit the U. S. (International) ANNAMESE MASS FOR NEW ATTACK Week-Long Battle Takes Toil Of 319 Dead, 234 Wounded SAIGON, Indo China, Sept. 30.— CP)—Fighting between Annamese and British and French forces en tered the second week today amid indications that the rebellious na tives are massing on the outskirts of Saigon for a concerted attack when 1,000 French reinforcements disembark Wednesday. The Annamese, battling to pre vent reestablishment of French rule in Indo China, are estimated to have a force of 20,000 men, three fourths of whom are armed, in the north-central area of Saigon. An unestimated number of armed na tives also are massing along the main roads in the southern area of the city. Despite official attempts te‘ mini mize the outbreaks, the known casualties from the first week otf fighting were 319 dead and 234 wounded. The dead included 204 Annamese and 100 French civil ians. Britons, French, Americans, Dutch, Chinese, Indians, Ghurk has, Japanese and Annamese have been involved either directly or in directly in the battling. British Maj. Gen. D. D. Gracey, commanding officer of the Saigon Control Commission, has ordered the active participation of Japan ese troops in an effort to quell the Annamese. Some 1,700 liberated Dutch prisoners of war have been armed. .tsritisn omciais insisted tnat tne situation has eased and that fighting now is restricted to the Saigon suburbs where Ghurkhas outflanked 200 natives who prev iously had turned back two pla toons of Indian troops and two sections of French Marines in a three-hour pitched battle in which the natives used m»rtars, grenades and automatic weapons. Two days ago a column of 13 trucks carrying liberated Dutch prisoners of war and Japanese troops was ambushed by thousands of Annamese armed with rifles and machineguns. The Japanese refused to fire on the natives and only eight trucks got through. The trucks were re turning to Saigon from Japanese arms dumps and probably con tained weapons. No announcement has been made of the casualties resulting from ftiat engagement. LONG-DISTANCE ‘DATE’ BEDFORD, Ind.,— (U.R) —Virginia R. Smith of Bedford, deputy Law rence county clerk, believes in ac cepting dates far in advance—at least when they are made by long distance telephone from London. Her sweetheart, Cpl. Victor Zilai tis, of Boston, made a date with ler for Christmas. Miss Smith re ceived the call at her desk in the courthouse and said she could hear as plainly as though “Victor was in the next room.” WEATHER (Eastern Standard Time) (By U. S. Weather Burean) meteorological data for the 24 hours •nding 7:30 p.m. yesterday. Temperature 1:30 a.m. 74; 7:30 a.m. 74; 1:30 p.m. 85; 7:30 p.m. 72.0 Maximum 84.5; Minimum 71; Mean 75; Normal 70. Humidity 1:30 a.m 92; 7:30 a.m. 89; 1:30 p.m. 60; 1:30 p.m. 91. precipitation Total for 24 hours ending 7:30 p.m.— 0.00 inches. Total since the first of the month— 0.00 inches. Tides For Today (From the Tide Tables published by U. S. Coast and Geodetic Survey). High Low Wilmintgon —_ 5:48 a.m. 12:37 a.m. 6:20 p.m. 12:51 p.m. Masonboro Inlet _ 4:04 a.m. 10:06 a.m. 4:27 p.m. 10:48 p.m. Sunrise 6:07; Sunset 5:57; Moonrise 1:36 a.m.; Moonset 3:54 p.m.. (Continued on Page Two; Col. 2) POWER MEET WANES U. S. OFFER REFUSED Some Progress Made During 20 Days Of Conferences LONDON, Monday, Oct, 1.—(ff)— The five power conference of Foreign Ministers worked for an hour past midnight today and then announced another session would be held tonight. It appeared the ministers would wind up their first meeting to night, perhaps without a solution to the conference’s biggest prob lem — procedure for writing the Balkan peace treaties. It was learned that the Russians have refused the latest and most liberal American compromise, of fering to acquiesce to the Soviet demand that only Russia, the United States and Britain write the Balkan pacts, providing as surances are given there will be a full-pledged peace parley later. The Russian objection to the compromise, and a corrollary pro posal that all belligerents against the Nazis meet to talk over Bal kan issues before drafting to peace pacts, led most observers to be lieve the conference would ad journ while the three major coun tries carried on negotiations through diplomatic channels. The ministers met for three hours this afternoon to consider material to be included in a final overall communique expected tomorrow on the conference records. On the basis of information from conference sources that the min isters of the United States, Great Britain, Russia, France and China intended to conclude their talks tonight, diplomatic quarters pre dicted the Balkan issue would re main unsettled. However, it was understood that the overall communique would an nounce several agreements reach ed dining the 20 days of delibera tions, including the Soviet-British agreements on a treaty for Fin land and oh withdrawal of troops from Iran by March 2, 1946. These reasons were cited by some conference delegates for the apparent failure to agree on major problems: 1— Lack of preparation, parti cularly advance exchanges of views before the London sessions began. Russia’s views on the Mediter ranean came as a surprise, while the Americans reportedly suddenly changed their stand on the disposal of Italian colonies. 2— Three of the Foreign ministers —James F. Byrnes of the United States, Ernest Bevin of Britain, ind Wang Shih-Chieh of China—are new in their jabs. And some ob servers have reported open clash es between Bevin and Molotov. 3— Alleged Russian sensitivity over publicity at the war’s end of he powerful economic and military position of the United States with Russia pictured as weaker. Some observers said the Atom bomb secret might have a role in such a Soviet attitude. (Continued on Page Two; Col. 4) Bandits Kidnap, Rob Doctor, Mother; Were On Race With Death WELLESLEY, Mass., Sept. 30.— (U.R)—Dr. Harold S. Smith of East Orange, N. J., and his 60-year-old mother were kidnapped and rob bed of $480 on the Worcester turn pike early today as they drove to the deathbed of the physician’s grandmother in Boston. Mother and son were forced to the side of the highway by three bandits who ordered them into an other automobile and drove three miles to Newton where the robbery occurred. The bandits released the pair immediately, having overlook ed some $600 which Dr. Smith car ried in a second wallet, and a dia mond ring which his mother slip ped into her pocketbook. Almost while the holdup was in progress, the doctor’s grandmoth er, Mrs. Ida Smith of Brighton, died at a Boston hospital. MacArthur Seizes 21 Japanese Banks; Nationwide Phone Strike Threatens; Glo Jster Passes Quarterway Mark Huge Plane Hour Behind 'Schedule' CIRCLES PYRAMIDS Army Air Forces Men Board Ship Enroute To India, China By PAUL-MILLER (Associated Press Staff Writer) CAIRO, Sept. 30— (/P) —The world-circling Globester circled the Pyramids today. It also: Passed the quarterway mark on its 23,147 mile flight around the world. It Roared in dazzling sun shine over the bomb and shelltorn desert battlefields of Benghazi, Matruh and El Alafmein.. Saw its first camel train, on the road below Tripoli. Took on its first passengers since departing Washington last Friday and, Ran out of water in the best tradition—right over the Libyan desert. Coming in along the Nile to Cairo after a 1,097 mile hop from Tripoli the Globester dipped its wings to the ancient pyramids while passengers—increased from nine to 28. at Casablanca—gaped and snapped pictures from the C 54’s twenty circular windows. Only a one hour stop was scheduled at Cairo as U. S. Army Air Transport Command observers pushed things along in - hope of picking up the hour the Globester was running behind. While passengers scurried for nearby souvenir shops, most of them buying Egypts’ famed puzzle rings, crews including turbanned barefoot natives swarmed in and serviced the ship for the 1,093 mile jump to what airmen out here call the hottest place in the world, Abadan. A nighttime landing there was arranged for the Glob ester. The plane departed for Abadan at 4:40 p. m. local time (8:40 a. m. Eastern Standard Time). It reached Cairo from Tripoli at (Continued on Page Two; Col. 6) TWENTY-FIVE E IN TRAIN W iCK BOURNE END, Herfordshire, England, Sept. 30.—(U.R)— Twenty five persons were killed and more than 94 injured today * when the London-bound Perth Express was derailed near here and plunged down a 20-foot embankment. Bodies of the engineer, the fire man and 13 identified passengers were taken from the '-’reckage as well as those of nine unidentified dead. One man previously reported as injured died later in a hospital. The train was carrying many servicemen, including Americans who acted as volunteer rescue workers. It was the worst rail crash of the year in England. The London-Mid land-Scottish Railway said in a statement that the train had been switched from a fast line to a slow one because of repairs in a tunnel, and would have been returned to the fast line a short distance from the scene of the wreck. Six coaches of the Express left the rails and four turned over. The engine and tender also went down the embankment. Railroad officials said the train was believed to have jumped a switch. UNEDUCATED BIRD HELD ON $10,000 BOND BY CUSTOMS MIAMI, Fla., Sept. 30.—(U.R) —If “Chico” were an educated bird, U. S. customs agents at Pan American Field would have a loud squawk on their hands today. The South American bird, flown from Barranquilla, Co lombia, for G. C. Hoyt of Chica go, was -ordered ‘‘held” under $10,000 bond on “charges” of illegal entry when customs found the bird was not accom panied by the proper papers. A customs broker, who knows Hoyt, guaranteed the bond tp save Chico from deportation while the international impasse is being ironed out. Member of a winged family that can be taught to talk, Chico has not yet made a dent on his (her?) ABC’s. “Thank goodness.” comment ed the customs agent appointed temporary jailer. CONGRESS TO GET NEW TAX PROGRAM WASHINGTON, Sept. 30.—(U.R)— The administration will submit to Congress tomorrow a transitional tax reduction program expected to relieve an estimated 10,000,000 persons of all income tax liability. It is believed to call for outright repeal of three per cent normal tax on individual incomes and the 59 per cent excess profits tax oh corporations. The changes, to be come effective Jan. 1, would re duce government tax income an estimated ?*,uuu,uuu,uuu. The prcjgram will be trapsmmi-d to the House Ways and Means com mittee by Sercetary of the Treas ury Fred M. Vinson. The normal tax on individuals has permitted an exeption of only $500 for each taxpayer with no credit for dependents. Its repeal would provide a measure of relief for all wage-earners, especially those in lower brackets. The National Lawyers Guild meanwhile called for a sharp tax reduction for low income groups, but recommended that existing in come and excess profits taxes be retained during reconversion. It outllined a six-point reconver sion program which would raise personal exemptions to $1,000 for single persons and $2,000 for mar ried persons, repeal the normal tax and cancel several indirect or exicise levies. Denouncing the “generous treat ment” accorded industry through financial aid and tax relief, it said that reconversion tax reductions “should have as their prime ob jective the relief of those with little incomes of a part of the heavy tax burdens they have carried during the war.” It characterized as “soak-the poor” legislation the ‘‘across-the board” tax reduction proposed by Rep. Harold Knutson, Minn., rank ing Republican member of the House Ways and Means commit tee, and others. Same government officials and “a large number of legislators,” it said, have been too complacent (Continued on Page Two; Col. 6) LEGION WILL FIGHT ANY TRANSFER MOVE ON VETERAN AFFAIRS WASHINGTON, Sept. 30.—(P)— The American Legion announced today it will fight “to the limit” any proposal to transfer some Vet erans Administration functions to other government bureaus. The Legion attributed to Gen. Omar N. Bradley, Veterans Ad ministrator, a proposal that the Federal Housing Administration take over the processing of home loans under the G. I. Bill of Rights. General Bradley promptly dis claimed sponsorship of any such plan. He said in a statement that he had talked to various financial groups in an effort to find out theif views on the handling of home loans but declared: “I, myself, made no proposal and expressed no opinion.” John Thomas Taylor, American Legion director of legislation, said in a letter to Bradley that it would be “just as logical to transfer vet erans hospitalization to the United States Public Health Service.” “Likewise,” he added, “it would be just as logical to transfer the payment of pensions and compen sation to the Social Security Board; Veterans insurance to the Treasury Department and so on until nothing is left of the Veterans Adminis tration as it is presently constitu ted.” Oil Strike Settlement Bogs Down 395.00 0 NOW IDLE Walkout At Westinghouse Plants May End This Week WASHINGTON, Sept. 30.—(A>)— A brief demonstration shutdown by 200.000 telephone workers across the country was called a ‘definite possibility” tonight by Joseph Beirne, president of the National Federation of Telephone Workers. This development came as gov ernment-sponsored conferences be tween petroleum companies and the CIO oil workers union were re cessed—with no visible prospects of quick settlement—until tomor row morning. The total number now idled by strikes, walkout, and layoffs over the nation totals about 395,000. The Telephone Federation was aroused by an intermediate report of the National Labor Relations board calling for immediate dis solution of the Western Electric Employes Association, a key unit of the Federation, on grounds that it was dominated by the Western Electric Company. daiu irom ms tjnnsiae, im. J., home that the Federation’s executive board would decide what action would be taken at a meeting tomorrow morning. Earlier, other union officials said the telephone employes might stop work for a week. « “We’re not going to take this ly ing down, you can depend on that,” Beirne added, in a telephone inter view. Beirne made his comments after an assertion by Walter H. Petry, Federation field organizer in Balti more, that no nationwide strike threat had been voiced by Federa tion officials. Petry said Beirne had informed him the reports were er roneous and unauthorized. In the oil refinery wage dispute, Secretary of Labor Schwellenbach appeal for settlement of the eight was reportedly preparing a fresh (Continued on Page Two; Col. 5) burtonmTdon COURT ROBE TODAY WASHINGTON, Sept. 30.—(JP) Harold H. Burton will swap a Sen ate seat for a place on the Su preme Court bench Monday at the opening of a new term expected to produce many far-reaching de cisions. Only the taking of two oaths— one to support the Constitution and the other to administer justice im partially—remained 'to make the Ohio Republican a full-fledged member of the nation’s highest tri bunal. Burton arranged to take the Con stitutional oath from Chief Justice Stone in the Court’s private confer ence room a few minutes before noon. Then, donning the tradition al black silk judicial robe for the first time, he will march with the other justices to the court room at the stroke of 12. immediately ne wiu De given tne judicial oath by Charles Elmore Cropley, clerk of the court. The 57-year-old Burton, a friend and former Senate colleague of President Truman, is the first Re publican to go on the high bench, since the appointment of Owen J, Roberts by President Hoover 15 years ago. Roberts resigned last July. Burton in his new work will have one Republican colleague, Chief (Continued on Page Two; Col. 2) Miss McConnell Returns To Her Home Saturday Reported as missing from her home last week, Miss Eula Virginia McConnell, an employe of the Star News, returned to her home here Saturday following a trip to Greensboro. Friends of Miss McConnell stat ed last night that she had gone to Greensboro on September 22, for a weekend visit and while there had the misfortune to become in volved in an automobile accident which delayed her return to Wil mington. tv -------i Truman Reviews White House MPs —...... ctp. .tctrssmhk I As the colors pass on Fort Meyer parade-ground in Virginia, Presi dent Truman (left, arrow) uncovers in salute with Secretary of War Patterson, Admiral Leahy and Gen. George Marshall. Occasion was the formal review by the President of the special company of Army Military Police that guarded the White House throughout the war. (In ternational) First Marine Division Will Police Tientsin I - TIENTSIN, China, Sept. 30.—(A1) —The U. S. First Marine Division entered Tientsin today, to assume police duties in northern China’s political hotspot, where Chinese ria tionalists and communists are at bayonet points and a Japanese Ar my is yet to surrender and be disarmed. Cheering, flag-waving Chinese lined the banks of the Hai River as the Leatherneck division, which had won glory at Guadalcanal, Pa lau and Okinawa, moved 28 miles upstream from Taku. The Marines, charged with assist ing Generalissimo Chiang Kai shek’s nationalist troops in disarm ing 250,000 Japanese troops in North China, were put ashore at Taku by Vice. Adm. D. E. Barbey’s Seventh Amphibious force. Pending the arrival of nationalist forces strong enough to take full control of the area, the Marines, aside from helping remove the stingers from a Nipponese army which is arrogantly aware of the fact it has never been defeated in battle, will undertake the follow ing chores: Liberate and give comfort to 2, 900 Allied prisoners of war and civ ilians internees; keep an eye on 232,000 Chinese puppet troops be tween the Yangtze river and the Great Wall; arrest war criminals; (Continued on Page Two; Col. 8) PRISONER ESCAPES WHEN STORM DOUSES PENITENTIARY LIGHTS CANON CITY, Colo., Sept. 30.— —Taking advantage of a power fail ure that doused all lights during a snowstorm, Edwin Robert Cain, 42-year-old prisoner, escaped from the state penitentiary early today by scaling a 12-foot fence. Cain, serving 50 years to life for second degree murder, was on duty as a waiter in the dining-room at Breakfast time when the prison’s hydro-electric plant failed. Before city power could be switched on he dashed from the dining-room into the laundry, climbed to the roof, dropped into a recreation field and ran to the east prison fence. Tower guards, their searchlights out, were helpless to stop the pris oner as he went over the barri cade. SHALLOTTE SCENE OF FATAL AFFRAY TABOR CITY, Sept. 30.—Willie H: Holden, 50, of Route 1, Shallotte was shot to deain in his home by his brother-in-law, George Lewis late Saturday night. Information received here stated that Lewis came to the Holden home asking to see his wife who was staying there for the night. Upon being refused, he left to re turn again in about an hour, en tering the house and in the affray that took place, Helden was shot. The victim lived only about ten minutes. An inquest will be held this week by Coroner Bell in Southport. Lewis is being held without bond in Brunswick County jail at South port. The body of tne deceased was taken to the Jessup-Inman funeral home in Tabor City and funeral services will be held at the Oak Grove Baptist church this after noon at 3 o’clock with the Rev Tom Johnson officating. Inter ment will be in the church ceme tery. Surviving are the wife and one daughter, Juanita; five sisters, Mrs. Lottie Robinson, Mrs. Let lie Hewitt, Mrs. Pinkey Clemmons of Supply; Mrs. Mary Hewitt of Fort Bragg; Mrs. Carrie Lovette of Bolivia; one brother, Jessie Holden of Supply and fathe: George Holden of Shallotte. St. Louis Wins Final Contest; Down Reds, 3-2 CINCINNATI, Sept. 30.—(£>)—Del Rice hit his first Major League home run today to give the St. Louis Cardinals a twelfth inning 3-2 victory over Cincinnati in the season finals.' The St. Louis catcher’s circuit blow broke up a pitchers duel be tween John Hetki, Redleg Rookie, and Harry “The Cat” Brecheen. Each allowed nine hits and struck out four, but Hetki walked one bat ter. The victory gave Brecheen his Fifteenth victory against four defeats. Hirohito’s Big Fortune Is Involved OFFICIALS OUSTED All Financial Operations “Froze” In One Swift Blow TOKYO, Sept. 30.—(/P)—General MacArthur's troops seized 21 fi nancial institutions in Japan today, ousted their officials and crushed with one swift blow the great bank ing combine that exploited an em pire built by r.rmed force. Emperor Hirohito’s person: 1 for tune was probably involved in the action. In a secret maneuver as bold as his.battle tactics, MacArthur threw armed troops of the U. S. Sixth and Eighth Armies around financial houses in Tokyo, Osaka, Yokoha ma, Nagoya, Kobe, Shimonoseki and Fukuoka. wniie me Lroop& meuuicu, ic preservatives of the Japanese Fi nance Ministry were summoned to Supreme Headquarters. Then at 4 p.m. troops entered the banks and impounded all funds, securities and records. In that same instant the Finance Ministry was handed at headquarters the orders freezing operations and re moving officials. .All the institutions, which either were, the financial spearheads or the supporting waves of exploita tion in the military conquests in Asia, are marked for liquidation, MacArthur announced. The Bank of Japan, most power ful in all the empire, also was oc cupied to secure its assets, but headquarters said that as a com mercial institution it was not per manently affected and was expect ed to reopen tomorrow. It stood on quaking ground, how ever, forjts financial ramifica tions extend to those caught in MacArthur’s pincers. The Japanese economy was head ed for further blows. Besides those houses seized, MacArthur also ord ered closs all other financial in stitutions whose “foremost purpose has been to finance colonization de velopment activities in areas out (Continued on Page Two; Col. 3) 146 CGAMENGET RAISE IN RANK One hundred forty six men in the Wilmington area who served with the Coast Guard Auxiliary and the Coast Guard Volunteer Port Se curity Force have received an ad vance of one step in rank or rate as a mark of appreciation for their part time, volunteer without pay services dring World War II, ac cording to information from the U. S. Coast Guard, Public Infor mation Department in Charleston, S. C. _ , A- k-,4k 1 lie U1UCL, vv -- officers and enlisted men of the two units in all Naval Districts throughout the United States, was issued at Coast Guard Headquar ters, where Admiral Russell R. Waesche, Commandant, voiced a “well done” for the reservists who by a headquarter’s order of August , 22 are being disenrolled about the first of October with only a small j percentage still being retained in ; an active status for administrative j purposes. The promotions in effect are hon orary. / • A total of 1,902 men served' in the Auxiliary and 1,283 in the Volunteer Port Security Force in the Sixth Naval District, of which Wilming ton is a part. Throughout the war the Coasl Guard’s temporary reservists serv ed without pay on a part time vol Continued on Page Two; Col. 4! BASEBALL SCORES AMERICAN LEAGUE Detroit 6, St. Louis 3 (2nd gam postponed) . Cleveland at Chicago—rain. Boston 2, New York 12. Only games scheduled. NATIONAL LEAGUE Chicago 5, Pittsburgh 2. . St. Louis 4, Cincinnati 1. Brooklyn 4, Philadelphia 2. V, i Viip Othman Takes Bath In Palace Of Nazi Spy By FREDERICK C. OTHMAN United Press Staff Correspondent ABOARD GLOBESTER EN ROUTE FROM CASABLANCA TO CAIRO, Sept.. 30. —(U.R)— Gather round friends and I’ll tell you how a feller from Missouri took a mid night bath in the marble palace of a Nazi spy. Hand me down my white bur noose, light the incense and call in the dancing girls. I bet I’m getting too far from home bathing in a tub. With a panoramic vie and hr ■ ing an arab try to wash my back with perfumed unguents has got me blinking. Turn on Scheherazade softly on the phonograph. Othman is recovering from an Arabian night. Paul Miller of the Associated Press, Inez Robb of the Interna tional News Service, and I had flown the Atlantic with the ATC’s first regularly scheduled round the-world flight. We put down dirty and tired at Casablanca where I think I recognized Sidney Green street in a green fez. The welcom ing Colonel mumbled “V%s.” That is us. Vips means very important people junketing. Congressmen are (Continued on Page Two; Col. 4) Passengers Fume, Play As Train Waits Out Hour By JOHN MADIGAN United Press Starr Correspondent) ABOARD THE REDWING, ST. JOHNSBURY, Vt„ Sept. 30—The international passenger train Red wing swung into a siding for a zero hour at 2 a. m. today be cause the Boston and Main Rail road sticks by its timetables— through rain, snow, sleet and Standard Time. The Pullmanless Redwing—nam ed for the pretty Indian maid arrived at this crossroads of three railroads under tow of the good locomotive “Peter Cooper’’ five lours out of Montreal, The rolling Vermont countryside was bleak and deserted except for an oc casional heifer, and a light wind rustled the “Vote for Dewey” signs on the station. Few of the 100-odd passengers in the coaches were aware that the B and M had ordered all trains halted on their tracts to while away the spare hour so that time tables wouldn’t be awry. Some rushed for the station restaurant, but the owner said • it was closing time and promptly locked the doors. He probably wanted thte extra hour’s sleep. Down the aisles of the darkened (Continued on Page Two; Col. 1) %