Show The Weather Temperatures Year— No h sventy-sevent- tor the Tmprtum ndini UTAH — Cloudy with intermit tent light snow this afternoon Except heavy in mountains of northeast and central portions Slowly decreasing: cloudiness with snow flurries tonight Partly cloudy unday with a few snow flurries mountains of northern portion older with low tonight 15 to 25 tgh Sunday 28 to 38 Windy over stern portion today period Mm Min A Ibuqueroue — SI Atlanta Boiae l B :::k 24 Ok la City 50 Omaha 43 Phneaix Poratello Butte (0 Portland Che 28 Provo 35 JSS Reno Chicago 4l!Heck Denvr CM Junction 47 33 Salt Late La Vega fls leSan Fran 22 St Oorn I4H Lxx Angetei mi ""St Louu X mmm Ills Miami New Orleans 48 45J Washington 1C 14 TM The United Press The Associated Press S27 OGDEN CITY UTAH SATURDAY EVENING DECEMBER 4 NEA Service AP Service 1948 EIGHT PAGES 71 50 43 54 M 41 23 9 5 so ST 90 64 S 43 44 S3 37 40 34 3 FINAL EDITION p Spy Network 'Proof Found Nationalist Government Concedes Fall oi Suchow L Stripling Says Person Who Handed Out State Secrets Is Now Known Microfilm Records Found on Farm I I WASHINGTON Dec 4 (AP)— The house activities committee said today it had dug up evidence identifying the person who slipped secret state department papers to a communist agent before the war self-describ- an ed Voles Sunday As Reds Waich j now wmttaker chambers senior editor of Time magazine told the committee last summer he was an agent for the red underground in Washington in the 1930s Stripling said that "very important' new documents have been seized He said these are in addition to microfilms of state department papers Chambers had secreted in a pumpkin on his Maryland farm and to more documents obtained from Chambers last night Subpoena on Attorney Stripling said the committee has served a subpoena on Chambers' lawyer Richard F Cleveland of Baltimore for documents and sworn statements taken in connection with a libel suit pending against Chambers there This $75000 damage suit against Chambers was filed by Alger Hiss former high state department official Chambers has testified Hiss was among the- members of a prewar red underground in the capital Chambers first made the accusation at congressional spy hearings last summer Hiss denied thejn When Chambers repeated some of them in a broadcast Hiss sued him for libel First disclosure that new evidence was being uncovered in the Chambers-His- s controversy came said yesterday when officials Chambers and others had made sworn statements this week in the office of Chambers' attorney Clark Ready to Act On the basis of this evidence Attorney General Clark said he would recommend if asked to do so that a special New York grand jury resume its investigation of com- 7 I T 1 business neea Have No Fear Sawyer States NEW YOttK Dec 4 (AP)— Secretary of Commerce Charies Sawyer pays that if the federal militaiy budget !s increased next year new economic controls will "almost certainly" be necessary to check infla tion But American business has "noth- tg to fear" from an rogram he told the closing ses sion of the 53rd annual congress of the National Association of Manufacturers last night anti-inflati- Sawyer's reassurance apparently Was aimed at those businessmen Who felt that President Truman's would be a signal for a - drive for legislation that businessmen have opposed High on the list of business fears have bejen'the threat 01 more taxes the excess profits tax and restoration 'f price controls n an address which he said ear-liwas approved by President Sawyer asserted that Trpman "avoiding controls will certainly require? teamwork and rigid restraint on the part 6f those who are interested with our military effort" An expansion in the current military program he said "would al- munism and espionage The house committee said it exmost certainly call for economic controls of various kinds" pects Rep Nixon who most details of the earlier Jp Washington the armed forces handled haye sought military appropriations red spy investigation to hurry to in the next fiscal year ranging up Washington Nixon had taken a boat to Panto 23000000 000 ama for vacation He has sent word Lid Calls for $15 Billion he will take the first plane availMr Truman has called for a $15 able after the ship docks Tuesday 000000000 lid on the military oud-g- in the Canal Zone Stripling said some of the documents that have come into the t Sawyer's remarks were conciliatory compared to President Tru- committee's possession through enthe Chambers' microfilm man's criticism of big business dur- larging were on navy and war department Sawing the election campaign But he said it apyer urged close cooperation be- letter heads to him all the documents tween business and government in pears from state department files the fight igainst inflation He said came State department officials said some ma lor corporations have "shown admirable restrain" in mcy uau seen none 01 tne new obtained the commitkeeping prices down but others material tee Therefore theybysaid they had hpve Contributed to the inflationary- no comment spiral by unjustified price increasT"We need more and cheaper con- 'Shocking' Says Mundt Rep Mundt a commitsumed goods and services of all member said the microfilms kjnds" he said "and business must tee broaden its market by increasing alone provide "definite proof" of existence of "one of the most productive efficiency and reducing the extensive espionage rings in the upit prices" of the United States" Sneaking before 2000 of the na- history In a statement last night Mundt tion's top industrialists and businessman Sawyer criticized tax cuts also said: L The committee has uncovered 80th made by the Republican-le- d congress and hinted higher taxes shocking" evidence that before the war "secret documents of dimav be sought He isaid the tax cut came at a rect significance to our national time when the government was security were fed out of the state burdened with new programs of department by a member of the foreign aid and national defense communist underground to Whit-takChambers" The underground hd ir) an inflatjsnary period wnen to)e gdvernment should be building member wasn't identified 2 There are indications that "a up it$ surplus to help "retire our final conclusion is imminent in the huge national debt" rather than deespleting the surplus case" pionage Restraint Needed 3 He is trying to line up other to revive the spy hearSawyer said the government rec- members at the earliest possible date ognized that expenditures for mili- ings Mund indicated that microfilm tary defense foreign aid and large-scal- e diplomatic public works added to inflaj copies of tion nd that it was the govern(Continued on Page Two) ment' job to hold such costs to a (Column t oun minimum He said the solution lies in the "exercise of retraint" by "every group and government agency" With industrial now near Its peak and production with a shortage in supply still existing Sawyer said Father-Daught- er ef f) -- et fR-S- er long-discuss- Hiss-Chambe- rs top-secr- the current voluntary program of' allocating certain products to key industries "may be needed for some time " Wallace V Bennett of Salt Lake d City president of the N A M told a news conference earlier that the current condibusiness-governme- nt newly-electe- tion of business was sound and hjalth No Law Violated By Recording Ban NEW YORK Dec 4 (UP) — The r American Federation of Musicians 'AF Li announced today the National Labor Relations board has held its recording ban does not the boycott provisions of viplat y the law The NLRB refused to issue complaints against the union and its New York and Las Angeles locals on proceedings brought by two transcription companies according to the union The complaints were filed by Radio Transcription Standard itvict- and Langworth Feature programs last Mav against the recording ban that has been in effect since Jan 1 Tift-Hartle- - Overloaded Ship Blows Up Sinks Near Shanghai Death Toll May Be Highest in Modern Marine History Berlin 'Island' Robert E Stripling the committe's chief investigator tald reporters: ff "We expect to show conclusively the source of these documents from the state department to Chambers" — i 3000 Chinese Die As Refugee-- aden Steamer Explodes et 2 t0"aist soldiers entrench themselves as observation post telephones back that red forces in command which is about 1000 away moving: toward their lines at Krh ( hen ( hi near Surhow The nationalist yards government has conceded the fall of Suchow Photo by Warren Lee) of hill (arrow) China w-r- NEA-Acm- T Truman and daughter Margaret wowed em They played a duet last — The Jenny Lind Polka" —night at a National Press club dinner for fathers and daughters where they were honor guests The crowd loved it And no one had a better time than the Trumans "Daddy taught me this when I was about 10" Margaret explained "and I don't" think we have played it since A singer of some renown Miss Truman got a big laugh when she said before starting the duet: "I do belong to a union so I got special dispensation to do n this with a member" Then they went at it slowly deliberately And when they were done they got a big ovation Introduced as the Trumans" the president"Traveling and his daughter were only one of a number of acts- in the two hours of entertainment Secret Service Agent Henry non-unio- - staff correspondent have a legal election that the Russians couldn't stop The ballot is merely a likt of three parties competing for municipal jobs But the struggle for Germany has made the local politicontest a straw in the wind SALT LAKE GITY Dec 4 (AP)— Appropriations total- cal to show which side the Germans ing $81519859 have been asked of the 1949 legislature by prefer state institutions and departments This sum is $320QQ419 Allies Want Heavy Vote If a high percentage of voters more than the agencies will spend during the current biat the polls the United appears ennium and almost that much in excess of anticipated rev- States Britain and France will —— claim German indorsement of their enue fight against Russian efforts to State Budget Director T J Midg-lc- y sovietize Berlin released figures today showing If the voting is relatively meagthe total of requests to be made to er the communists will hail it as Gov elect J Bracken Lee and the a vindication of Russian efforts to legislators force the western allies out of the The figures for appropriation recity But no western observer expects quests and for the comparative exthis both oinit biennium the communists to'admit a reverse penditures no matter how many Berliners igdepartmental collections such as fees and tuitions which amount to nore their demand to boycott the several million dollars more Also election omitted Midgley said are requests The communist gangs have been SALT LAKE 4 CITY Dec for state aid for public school I all week But if the vote meetings — The Utah AP) legislature will is heavy past tactics suggest the buildings and state aid to the minimum school program and to cities have one of its major problems in communists will cry fraud by "reand counties amounting to some meeting the educational needs of actionary $5000000 additionally Europe has never seen an elec the state Rep Rendell N Mabey tion like this before vs Revenue Requests Lake) said today of City Mabey chairman of the Utah In Noting that the governor is prohibited under the constitution from legislative council said the counIt is taking place in recommending expenditures in ex- cil's report to be released Sun- of the gaunt ruined city the U S cess of anticipated revenue Midgley British and French sectors which said requests for appropriations day will stress the "vital need" for have been under land blockade by better educational facilities in the the Russian armed forces since from the general fund now are June The other third is held by although anticipated rev- state enue is $14500000 Russia Plan Overhead there is the almo-- t Requests for sales tax revenue Streamlining A council plan to streamline the continual drone of American and for the next two years total compared with anticioated educational system and to acceler- British military cargo planes movrevenue of $25500000 the food and coal which ate needed school construction will ing inalive what Berliners call the Requests for gasoline and fuel be submitted to keep the legislature he "island of freedom" tax funds total $17900000: the esThe United States Britain and from revenue timated these said 'I believe that the education sources is $13400000 should receive the pri- France control 12 city boroughs problem a population of more than The fish and game department remary consideration of the 1949 with 2000000 The Russians have eight quested appropriation is $2266505 Utah legislature" Midgley said fish and game revenue boroughs with 1200000 Germans The council report Mabey says whom they have forbidden to! vote estimates are $1900000 tomorrow Requests for motor vehicle reg- urges: istration revenue total $1674419 in Geographically still in one piece 1 Financial support for the sevaddition to the amount to be distrihas two of everything poBerlin buted to cities and counties This eral divisions of the public school litical from lord mayors tof fire has been $3000000 during the system departments 2 "Realistic" study of budget resay Russia fa present biennium and local governments already have urged that quests for overlapping educational seeking to expel her former allies all of this ievnue be diverted to agencies from Berlin by virtually any 3 Consideration of the 'clear menace short of war them Estimated revenue is need" for additional school buildThe election is called for by the ings Berlin constitution which the four t All Ask for Increase 4 Study of financing problems powers okayed in 1946 This week when the communists Midgley said virtually every state for construction programs in the school districts of the state sex up a rump government nicy department asked for increased in- poorer ex5 Study of the need for come this year although some-wer- e of chose it by a mechanical for greater increases on a percent- panding the school system to keep hands in a mass meeting atstjow a forup with modern trends in educa- mer operetta theatre age basis than others Among departments headed by tion The rump government claims to elective officials the greatest perrule all Berlin So does the governg Plans centage increase was asked by the ment elected in 1946 at the ballot state department of education Mabey said no changes are con- boxes for a two-yeterm now ex- Midgly reported this department templated however in existing pinng and asked his administrative expenses laws for support of primary be jumped from $199100 to $274-30- 4 secondary schools The council will record that all Also requested was a boost from proposals for state aid in school $275000 to $1367826 for the Salt construction which are presented to Lake area vocational school and an the legislature be accompanied by increase from $100000 to $325000 plans for raising the money needfor the Central Utah vocational ed for the projects Student at Requests for 1949 Budget Hurt Fatally Top Income by $32 Million In Road Crash CLEARFIELD Davis County Dec 4— Billy Mohassel 22 student at Brigham Young university Provo was fatally injured and his companion Amir N Sharmahd 23 also a student was seriously hurt when their car collided with a Greyhound bus todays at three-thirt- y am on U S highway 91 about of a mile south Clearfield's south city limits Both Mohassel and Sharmahd are students from Persia Mohassel died at y am at Thomas D Dee Memorial hospital Ogden where he was taken for treatment of a possible skull fracture severe lacerations shock three-quarte- rs five-fift- and other injuries Sharmahd who suffered a possible fracture of his right shoulder is reported in satisfactory condition Both young men were residents of BYU dormitories The accident happened when the sedan driven in a southerly direction by Sharmahd skidded ota the icy highway into the path of the bus Lieut Jack F oncoming Gridley Utah highway patrol who investigated reported Odell M Anderson 33 of Third avenue Salt Lake City driver of the bus and his one passenger escaped injury Lieut Gridley there was no indication reported of excessive speed by either driver German Aid Seen Rearming Russia pri-m- rr IhTI Nicholson convulsed the crowd and Mr Truman too with an imitation of the president's standard back platform campaign speech Afterward Mr Truman told the 400 'fathers and daughters present that he wanted to assure Nicholson that everything was all right "He's not going to get fired" the president chuckled Mr Truman said he had a "most happy evening" He spent added that when he gets back from a week-encruise he is going to "begin signing the 10000 congratulatory notes I have to send out on account of something that happened on November 2" Along side Mr Truman at the dinner table were Secretary of the Treasury Snyder and his daughter Drucie The usually solemn retiring secretary surprised everyone by taking part in a rollicking skit titled "Finance by the Fireside" with Drucie doing the interviewing as "Miss Ima Dollar Sign" Discussing the public debt Snyder humorously assured her that "what we owe we owe to east-we- st -- Major Problem For Legislature war-monge- (R-Sa- rs lt Two-Thir- ds two-thir- $37-3184- ds 15 $25-7373- Anti-communi- Money-Raisin- ar Uncle Sam Hunts Counterfeit Ring Five Cars Collide At Terrace Road Officer Polite Ignores Attack NEW BRITAIN Conn Dec 4 UP — A polite policeman was asked in police court why he did not arrest two men he saw beating up an elderly person "It would be unethical" he replied "And why would it be 'unethical'" questioned an attorney The patrolman smiled and said "it wasn't on my beat" Another officer made the arrests n A five-ca- r collision at a m today at the intersection of U S highway 91 and the Washingten-fifte- ton Terrace road resulted in approximately $600 property damage but no personal to Deputy LeRoy Had-le- y of the Weber county sheriff's office the accident occurred whtn two cars skidded through the stop sign from the Washington Terrace road during a snow storm O E Benedict 46 Victory road was tne first driver to have his automobile skid past the stop His machine was struck sign broadside by a machine driven ov Dean Burch 16 2629 Washington which was traveling north on U S 91 Benedict's automobile was struck the second time by a machine driven by Ralph Gibby 37 of Roy who was traveling south on U injury-Accordin- g P-9- SHOPPING DAYS TO CHRISTMAS d our country" ist Education Offers CLEVELAND Dec 4 (AP)— The United States is building an arsenal for the Russians by rebuilding Germany's industrial production Sumner Welles former undersecretary of state said here last night He addressed the 25th anniversary meeting of the Council of World Affairs In his was sharply critical of the talk he influence on this country's military foreign 2 policy "We face an increasingly dangerous trend" he said ' in' the growing control of our foreign policy by those who speak ¥ for the armed services ' Welles said the domination of the military has tinged all American foreign relations with the ot war In is aura he school decisions are made in which alleged strategic advantage su Truman Duo Is Smash Hit At Dinner By Marvin L Arrow smith WASHINGTON Dec 4 AP) The piano team of President e e SHANGHAI Dec 4 (AP)— More than 3000 Chinese central China were believed today to have fleeing war-tor- n BERLIN Dec 4 AP— West- perished when ah overloaded ship exploded and sank outside ern Berliners vote tomorrow for a of Shanghai new city administration in their An estimated 4000 refugees were aboard the small ves"island of freedom" 100 miles In- sel — the China Merchant Steamship company's 2099-to- n side the Soviet army's ramparts in Kiangya — when it blew up amidship late last night and Europe Blockaded Berlin is going to sank within a few minutes near the mouth of the Yangtze 9 S 91 A few seconds after Benedict skidded through the stop sign a second machine driven bv Jake j j Hoogland 3° 5 Navy way Washington Terrace could not stop and was struck on the right front by a machine driven by Richard I Arsenal Villa Kingsford 36 7 Deputy Hadley said in each accident both machines envolved were flung around on the slick read surface bumping into one another several times Burch was issued a traffic citation for no driver's license E-1- F-4- Well if ya really wanna know what's up Doc I'll tell ya The cost of living is up! Get it Doc? WASHINGTON Dec 4 (UP) — The secret service disclosed today it was hunting down a counterfeit money ring with headquarters near Chicago that is flooding the nation with nearly perfect bogus bills The ring has outlets all over the country the secret service said although little of its work has shown up in Chicago itself In the past two months its bills have circulated in Pacific coast states along the entire eastern seaboard and in the south and middle west Earlier the secret service reported New York banks had discovered "millions of dollars" in fake 10 and 20 dollar bills circulating in their area and apparently made by another gang The New York bills have been made to look like notes issued by the federal reserve bank of Chicago they said The notes carry d the letter "G" in the on the face of the bill which ring indicates the Chicago bank Currency issued in New York carries the letter B" Officials warned merchants and banks against accepting the money in the Christmas shopping rush They said the last big counterfeiting ring operated by "Count" Victor Lustig in 1944 flooded the midwest with $2500000 left-han- river Rescue craft bridging turvivors to Shanghai during the day were reported to have picked up less than 700 Some sources reported no more than 400 survived if the death toll U confirmed it will be the wont marine disaster in modern history The loss would be about tWice the 1317 who perished when the Titanic went down in 1912) It was the first major disaster in SHANGHAI Dec 4 (UP) —Qualified American military observers the frenzied exodus from Shanghai here believe that Nanking capand Nanking Both cities are menital of Chiang Chinese aced by Chinese communist armies nationalist be in will government now engaged in critical — possibly of the end communist hands by I decisive — battles less than 200 this month miles northwest of Nanking They believe that the fate of The steamship had sailed from and in turn Shanghai Nanking Shanghai en route to Ningpo was sealed by President Truman's (Ninghsien) about 200 miles south announcement that Gen Douglas of hare It was jammed with MacArthur will not be sent to Shanghai and Nanking residents at- China to aid tempting to reach the relative safe- tions from Chiang and by indicaWashington that new ty of Shekiang province large-scal- e United States aid will Far Beyond Capacity be forthcoming Quickly if at A company spokesman said the not Kiangya's capacity was 186 pas- allIt Is known here that Chiang's sengers He added however that thousands of refugees had swarmed forces cannot hold out on the Nanaboard on each of the ship's trips front much longer unless main recent weeks despite efforts to king jor supplies of ammunition arms hold a safety limit 1 The spokesman said the vessel and other war material are forth- had carried at least 4000 passengers coming on each of! its previous trips and Many observers believe that the that there were at least that many generalissimo will remove his aboard this) time quarters soon to Ni Survivors — one 6f whom were 350 miles southeast of Nanking and injured — reported that the ship about 100 miles south of the Yang went down shortly after a tremen- tze and will hold out there for a dous explosion One survivor said time before falling back farther it might have been sabotage be- south to Canton cause he noticed two junks passing No Agreement On Policy the stern of the ship a few minutes Not even the fairly earlier He said they might have loosed a ber of Americans in mine Shipping menj were inclined Shanghai are agreed as to blame overstrained boilers for should be the policy of the United States re carding China the blast One group of Americans sees it Many Trapped this way: 1 Chiang s government The ship's wireless was unaccountably out of commission and is bankrupt and has lost the supits plight was not learned until a port of a vast majority of Chinese passing coastal vessel the Hwa Foo and therefore is not worth supmeasure porting even as a stop-ga- p sighted the smoking ship Many of the victims were be- It is hoped that some worthwhile lieved to bave been trapped below leader or group of leaders will decks emerge to obtain the support of The company spokesman said res- a majority of the Chinese — but it cue work still was proceeding late is admitted that no such develIs presently in prospect It today — bnt this was interpreted to opment mean cnieiiy tne recovering ot is argued that Chiang has had every chance but has failed bodl I 2 Official American information that the Chinese cent re not entirely under Rus sian control and it is hoped therefore that the communists may form at least temporarily "a democratic coalition" regime including Kai-Shek- 's I 1 Kai-She- k Put Sunday Down As Your Chance To Visit Morgan Mark Sunday down in your date book for a visit to Morgan This prosperous attractive city reached via scenic Weber canyon' has agriculture in a variety of forms small industry and easy access to good fishing and hunting Any visitor will quickly understand the pride Morgan folk have tn their community Pictures and story will help acquaint you with this Morgan county seat Next week Monday through KLO will salute Friday station p m Morgan at three-thirtaauy ' elements with which Americans could do business Some Americans already in informal cong tact with groups say they have been assured that the communists are ready to agree to such a coalition once the Chiang regime is beaten Communist Showdowa? X Since the policy of limited support to Chiang's government admittedly has failed this group feels that the best policy at the present time is one of "wait and see" 4k Viewing the Chinese problem world - wide fight at part: of anti-Chian- against communist aggression this group believes that any showdown which might involve war with Russia should come in Europe rather than in China because it is felt that the U S is on better moral and legal ground there But another group of including some military men with long experience in Asia believe that Washington's "hands off pol' Snowing and blowing" at Snow icy is courting disaster Basin made skiing impossible today according to a report A large number of skiiers who traveled to the popular winter recreational area faced disappointment this morning due to the strong wind which prevented operation of the y Wind Hampers Skiing in Basin Studio Suspends Rita Hayworth ski lift However with a snow depth of 30 inches skiing will be excellent if the wind abates the report said A crew from the Ogden city streets department is keeping the road open and the roads are reported in good condition UN Adjournment PARIS Dec 4 tUP— The United Nations steering committee reressmaii I'asscs today a British proposal that PRESSMEN'S HOME Tenn jected the continue its general Dec 4 i UP i — George L Berry meeting hereassembly until it finishes- its president of the International work even if it takes until after The committee then Printing Pressmen and Assistants Christmas union for half a century died recommended that the assembly - early today Nankings Fall Within Month Now Forecast adjourn the night oi Dec 11-- U HOLLYWOOD Dec 4 (API — Rita Haworth is under suspension today from her $248000 a year movie job Columbia pictures said yesterday that the auburn-hatre- d lovely refused to report for work on a new film "Lona Hanson" Production plans on the film to bo shot in Nogales Ariz also have been suspended Rita said she had "nothing to say" about the mat- ter She arrived in Hollywood last week from a Mexico City and Havana vacation trip with Aly Khan The son of the fabulouslv-wealth- y Aga Khan is Rita's current heart interest He also is in town Her divorce from Orson We"cs actor writer and producer be came imal Wednesday |