ii
1
Labor and Industry
Study Truman Move
For Wage Increases
Washington, Oct. 31 (U.R) Labor and industry today care
fully studied President Truman's middle-of-the-road wage-price
policy statement to find a fresh approach to the disputes stalling
reconversion.
The first labor reaction came from a CIO spokesman who ex
pressed "disappointment" that Mr. Truman did not recommend a
specific percentage formula for wage increases. The CIO is ask
ing 30 per cent raises to offset loss of wartime "take home" pay.
WAGE INCREASES DECLARED IMPERATIVE NEED
The keynote of Mr. Truman's wage-price address to the nation
last night was this: "Substantial" wage increases to labor are "im
( perative," business in general can pay them without requiring
f price increases, and the government must and will continue efforts
to hold down the cost of living.
At the same time, the president emphasized that the govern
ment was ready to allow'price increases if that were found abso
lutely necessary to assure business a "fair profit."
He accompanied his speech with an executive order which
authorized such necessary increases.
The president carefully refrained from recommending any
precise amount by which wages should be raised, making clear
that this should be determined by collective bargaining "in good
faith."
But he provided labor with one argument for the bargaining
table. He estimated that the take-home pay of most workers had
dropped 25 per cent or more since V-J day and that increases were
needed to prevent deflation and consequent wide unemployment.
CONSIDERATION, REASONABLENESS ARE URGED
He urged industry to give careful consideration to labor's re
quests, and in turn asked labor to be "reasonable" in its demands.
"We must not kill the goose which lays the golden egg," he
said. ' -
Declaring that he, like others, has been "distressed in recent
weeks" by mounting labor unrest, Mr. Truman bluntly placed part
T-of the blame on the doorstep of congress.
He criticized congress in general and two house committees
in particular for blocking three of his important reconversion re
commendationsexpanded unemployment compensation, full em
ployment legislation, and continued federal control of the U. S.
Employment Service.
Mr. Truman said the 25 per cent cut In workers' take-home
pay had resulted from these factors: Loss of wartime overtime pay,
down-grading from higher-paying jobs and the fact that peacetime
Jobs pay less than war jobs.
"These three factors added together mean a drastic cut in the
take-home pay of millions of workers," he said. "If nothing is
done to help the workers in this situation, millions of families will
have to tighten their belts and by several notches.
VAST SALARY SHRINK SEEN IN NATION
"It has been estimated that, unless checked, the annual wage
and salary bill in private industry will shrink by over $20,000 000,
000. That is not going to do anybody any good labor, business,
agriculture or the general public.
Mr. Truman warned workers that it would be impossible to
maintain the identical take-home pay level that prevailed during
the war.
"There will have to be a drop," he conceded. "But the nation
cannot afford to have that drop too drastic.
, "Wage increases are therefore imperative to cushion the
4 shock to our workers, to sustain adequate purchasing power and
' to raise the national income."
The president said there was room in the existing price struc
ture for business as a whole to raise wages.
Business, the president said, can study wage demands in the
knowledge that certain of its wartime operating costs are going
down. He pointed to elimination of overtime pay, down-grading
of workers to lower-rated jobs, increased productivity, a "very
favorable profit position," and repeal of excess profits taxes.
LIMITATIONS ON INDUSTRY'S ABILITY TO PAY
At the same time, the president asked labor to recognize that
there are limitations on industry's capacity to raise wages without
price increases. These limitations, he said, include less profitable
production of peacetime items, reconversion expenditures, the
costs of developing new lines and markets and training inexperi
enced workers.
"These problems and difficulties are particularly true in the
case of small business which is the backbone of the American
competitive system," Mr. Truman said.
"Labor must not demand more than an industry or a company
can pay under existing prices and conditions. Excessive demands
would deny to industry reasonable profits to which it is entitled,
. and which are necessary to stimulate an expansion of production."
He said labor has a responsibility to aid Industry in reaching
this goal of higher production and more jobs by striving constantly
for greater efficiency and productivity.
"Labor," he said, "must constantly find ways within its own
ranks of cutting down on absenteeism, reducing turnover, avoiding
jurisdictional disputes and wildcat strikes. Labor and industry
must adopt collective bargaining as the effective and mature way
of doing business."
VARIATION IN INCREASES IS RECOGNIZED
He said that the extent of wage increases will vary between
companies and industries. And what can be paid today, he abided,
will be different from what can be paid next year or later, when
markets have become established and earnings apparent.
"Both management and labor must keep on exploring these
developments and determine from time to time to what extent
costs have been reduced and profits have been increased, and how
far these can properly be passed on in the form of increased
wages."
Mr. Truman flatly rejected arguments by some business leaders
that any wage increase must be accompanied by a corresponding
price increase. He warned that the nation must not repeat its ex
perience following the last war when "a dizzy upward spiral of
wages and cost of living ended in the crash of the 1920's a crash
that spread bankruptcy and foreclosure and .unemployment
throughout the nation."
The president reaffirmed his wage-price policy order of last
Aug. 18. He said this allowed management to make wage increases
"f any amount without governmental approval if they did not re
quire price increases, but which required approval before the in
crease could be reflected in higher prices.
THREE SITUATIONS SET FORTH
He said that amendments to this order set forth three situa
tions where wage increases would be allowed irrespective of price
consequences. These were:
1. Where increases in average straight time hourly earnings
have not equalled the cost of living between January, 1941, and
September, 1945. The cost of living rose 32 per cent in that period
but average straight time hourly earnings in virtually all manu
facturing went up 36 per cent.
2. Where necessary to correct inequities among plants in the
same industry or locality.
3. Where necessary to insure full production essential to re
conversion. Economic Stabilization Director John C. Collet said in a state
ment accompanying this order that so few industries and workers
would qualify for these increases that no material effect would be
felt in the cost of living.
Mr. Truman emphasized the pricing provisions of his execu
tive order.
If management grants a wage increase, he said, it is not pre
vented from coming in thereafter and asking the government to
consider that extra cost for purposes of a price ceiling Increase.
If after a reasonable test period usually six months the in
dustry has been able to produce at a fair profit under raised wages,
the entire wane increase will be taken into account in passing upon
ajLE-cai.cij fur price increase.
Medford
United Press Full Leased Wire
Fortieth Year
Communist Leader
(Acmtt lelcphotfti
Gen. Chu Teh (above, commandei
of the Communist Eighth Route
Army of China, which is entrenched
in southern Manchuria on railway
lines behind three ports where U. S
Seventh Fleet is scheduled to lond
troops. In undeclared civil war, Chu
challenges authority and leadership
of Generalissimo Chiang Kai-Shek.
Photo by Edgar Snow.
'S
SEEN MANDATE TO
SETTLE
Portland, Ore., Oct. 31 U.R)
Federal Conciliator E. P.
Marsh today said President Tru
man's speech on wages and
prices "was a clear mandate" to
compromise warring factions in
the Pacific northwest lumber
strike.
"The president policy Is a
mandate to get them (AFL and
operators) around the confer
ence table and I'll have them
there in a week," Marsh pre
dicted. E. P. Christenson, strike
chairman for the AFL lumber
and sawmill workers associa
tion, declared "our position has
always been that the operators
can meet our wage demands at
the present price level and still
make a high percentage of pro
fits." Christenson, acknowledB 1 n g
that the five week old strike of
some 60,000 workers is hinder
ing the reconversion program,
reiterated the AFL's willingness
to meet with any operator or
group of operators to discuss the
strike.
Meantime, the AFL commit
tee went Into a third day of
conferences, with President Tru
man's speech the highpoint of
discussion.
Christenson disclosed that a
high percentage of the AFL lum
ber workers in Oregon. Wash
ington, Idaho. Montana and
northern California have gone
into other work for higher
wages.
Young Burglars
Nabbed by Police
Bernie E. Bjornsen, 14, and
Richard Davis, 16, both of Stock
ton, Cal., were arrested by city
police and lodged in jail last
night after being found in the
home of George F. Rcigel, 117
South Holly street, where they
had stolen a few miscellaneous
articles.
According to the police report,
the youths admitted stealing a
car at Stockton, later abandon
ing it at Red Bluff, where they
stole another auto to travel
north.
And when von buv those Vic
tory Bonds KEEP THEM.
Truman Picking Losing Fight With
Congress Is Reaction to Address
Washington, Oct. 31 (U.R
President Truman, dropping his
usual concilliatory tone with
congress, plunged into his first
major fight with the lawmakers
today in an effort to salvage
three basic planks of his recon
version platform.
The president sounded the
battle cry last night in his wage
price speech. In blunt and vig
orous language, he singled out
two house committees as respon
sible for "damaging delays" in
passing jobless benefits and full
employment legislation. And
he criticized both the house and
the senate for favoring restora
tion of the U. S. employment
service of the states.
IAPANESE FLEET
10 BE somuD
Some Smaller Craft To Be
Divided Among China
Russia, Britain and U. S
Washington, Oct. 31 (U.R
Secretary of State James F.
Byrnes announced today that the
remnants of the Japanese fleet
except 38 destroyers, will be
scuttled.
The destroyers and some lesser
ships will be divided equally
among China, Russia, Britain
and the United States.
The method of scuttling has
not been determined. The U. S,
navy intends to test the atomic
bomb on naval ships, and may
use them for that purpose. In
any event, the scuttling .will be
done by this country.
51 Subs On Lilt
Byrnes did not have exact
figures on the number of vessels
to be scuttled. But said they in
cluded one battleship, four air
craft carriers (one of which is
damaged), four cruisers (three of
which are damaged), and 51 sub
marines.
He likewise had no informa
tion of the exact number of
smaller vessels which will be
shared by the Big Four in addi
tion to the 38 destroyers.
Byrnes was reminded about
the agreement at Potsdam for
BiflttThree expects to work out
plans for disposition of the Ger
man navy and merchant marine.
He said he could make no com
ment on that situation now be
cause it must await what he de
scribed as certain happenings
that haven't happened.
Disposition of the Italian fleet,
he said, will be involved in the
peace treaty. For that country
the question has not been fully
disposed of, he said.
BLACK MARKET IN
TOKYO BROKE
Tokyo. Oct. 31 (U.R1 Amer
ican military police broke up
what was described as the "big
gest black market ever operated
in the Pacific," believed to have
sold more than $500,000 worth
of U. S. army goods In three
weeks, it was announced today.
Four American soldiers, two
Italians and two Japanese were
arrested by military police who
raided headquarters of the mar
ket at the Marunouchi hotel
Tuesday night.
The hotel was used as a clear
ing house by the black market
ers, authorities said. The raid
was carried out on orders of
Brig. Gen. Hugh Hoffman, pro
vost marshal of the Tokyo area.
VANDALISM TABOO IN
HALLOWEEN STUNTS
No vandalism or unnecessary
disturbances will be tolerated to
night, according to Clatous Mc
Credic, city police chief. A few
reports of youngsters taking
fuses, moving street torches, set
ting firecrackers in mail boxes,
etc., were given police last night,
officers said.
The reaction In congress was
that Mr. Truman was picking
himself a losing fight.
Chairman Carter Manasco. D
Ala., of the house executive ex
penditures committee which is
considering the full employment
bill said he feared the presi
dent's speech killed any chance
of getting approval for even a
compromise measure. A repub
lican member of the group. Rep.
Ralph E. Church of Illinois,
agreed.
Members of the house ways
and means committee, which
voted to shelve the president's
request to expand 'unemploy
ment compensation, likewise
were dubious that the speech
would improve the outlook, i
MEDFORD, OREGON, WEDNESDAY, OCTOBER 31, 1945.
(PI
TEACHERS SLATE
2 - D A YINSTITUTE
Educational Conference To
Be Held Thursday, Friday
At S0CE In Ashland
All teachers of Jackson and
Josephine counties will gather in
Ashland Thursday and Friday of
this week for the annual south
ern Oregon regional educational
conference and teachers' insti
tute, to be held at the Southern
Oregon College of Education.
Sponsors of the conference are
Josephine and Jackson counties,
the Southern Oregon college r.nd
the Oregon State Teachers' as
sociation. Leading the list of speakers is
Dr. Lillian Gray, associate pro
fessor of education, San Jose
State college, Calif. Other spenk
ers will be Dr. A. C. Flora, sup
erintendent of schools, Colum
bia, S. C, and a past president
of the National Education as
sociation; Dr. Victor P. Morris,
dean, school of business admin
istration, University of Oregon;
Dr. D. V. Poling, high school con
tact representative, Oregon State
system of higher education; Dr.
Rex Putnam, Oregon state super
intendent of public instruction
and Dr. Frank Parr, executive
secretary, Oregon State Teach
ers' association.
Two speakers will discuss re
tirement plans and questions,
and it is thought these will be
of unusual interest. They are
Supt. James Burgess, member of
the Public Employes Retirement
commission and superintendent
of school, The Dalles, Ore., ond
Jerry Sayler, executive secre
tary, Oregon Public Employes
Retirement commission.
Also scheduled for talks be
fore sections and group meetings
are Bertha jtohlhagen, state
supervisor of homo economics
education; O. G. llughson, state
building congress; Mrs. Gertrude
Blum, chairman of the education
section, Oregon War Finance
committee; Dr. Curtis Rcid,
visual aid department, Oregon
state system of higher education;
Miss Neva Dallas, supervisor of
Josephine county schools; Miss
Tillie Schlumberger, Scott Forsc
man company; Miss Alice M-i-ghen,
the Winston company; Miss
Helen Haydcn, Lyons and Carna
han company; Angus Bowmcr,
dramatic department, S.O.C.E.
and Wallace Sapp, music depart
ment, S.O.C.E.
Dr. Walter Rcdford, president
of S.O.C.E., will act as general
chairman of the sessions and
Lester D. Harris, principal of
the Medford senior high school,
Laurence C. Moffitt. superinten
dent of Josephine county schools
and Leland P. Linn, superinten
dent of schools, Ashland, will
preside over various sessions.
Section chairmen will be Her-
shel Mannan, president, Jose
phine county Oregon State
Teachers' association; Lyle Lind-
lcy, president. Jackson countv
O.S.T.A.; M. B. Wlnslow, super
intendent of schools, Grants
Pass; Mrs. Mae Richardson, pri
mary teacher, Central Point; Her
tha Stephens, S.O.C.E.; R. Clojd
nine, Director of vocal music
Grants Pass; Daphne Matthews,
high school English department,
Grants Pass; Alma Frerlchs,
iiumemaKing department, Grants
Pass high school; Flora Stokoe.
intermediate teacher. Talent; E.
H. Hedrick,' superintendent nl
schools, Medford; E. Hope Get-
i-neii, primary teacher, Grants
Pass; Mrs. Alice Gay, primary
teacher, Central Point; Rose
ferry, principal. Wildervilli.
school, Josephine county; Roland
Parks, principal, Junior high
school, Ashland;' Mrs. Kathleen
M. Clarke, Grants Pass high
school; Mary McLarnan, home
economics department, Ashland
senior high school; Mrs. rene
Cribb, intermediate teacher, Ker
by. and Lewis Herbert, social
studies department, Grants Pass
high school.
12 NAVY MEN LOST
San Francisco, Oct. 31 (U.R)
Navy and coast guard officials
today.searched for the bodies of
possibly 12 men feared drowned
when a Liberty launch cap.i.ed
in the bav vhil( rnn-iin ninr:r.
side a nest of destroyer tscor'j,
All These and
! WMt r r v i
( Acma I tltpnoio
Cass Daley, talented NBO comedienne, goes berserk now tnat snoe ra
tioning is at an end! Clerk George Garcia Is In for a busy time of It as
Cass stocks up at a Hollywood. Calif., shoe store, after a "long hard win
ter" of shoe rationing.
Eisenhower Sees Danger of
Uprising Against Americans
Frankfurt, Germany, Oct. 31
(U.R) Gen. Dwight D. Eisen
hower reported to Washington
today that Increasing discontent
among German youths and for
mer soldiers show signs of de
veloping into an organized up
rising against American occupa
tion forces.
German resentment against
American fraternization with
German girls and general inac
tivity already has led to sporadic
outbrenks of violence, Eisenhow
er said in his formal report for
September.
"If widespread unemployment
persists," he said, "sentiments
behind them may provide rally
ing points for activities which
might grow into organized re
sistance directed against the oc
cupation forces."
Criticism by German adults
against policies of the American
military government also Is
growing bolder, Eisenhower said.
He said "extreme leftists" were
exerting pressure for more se
vere punishment of former nazis
than mere removal from office.
Elsenhower said his program
of denazification was leveling
IN P.O. BURGLARY
Portland, Ore., Oct. 31 (U.R)
Post Office officials today an
nounced two men and two wom
en were under arrest for the bur
glary of the Wauna, Ore. post
office July 24, which was fol
lowed by the forging of approxi
mately $2,000 worth of stolen
money order blanks.
The Clatsop county robbery
was followed by the scries of
forged money order cashings in
Portland, Tacoma, Seattle, Los
Angeles, Pasadena and Hunting
ton Park, Cal. The post office
stamp and about 25 forms were
stolen.
Those held were Virgil C.
Lewis, 23, escapee, ringleader of
12 prisoners who broke out of
the Multnomah county jail; Fred
crick L. Mclntyrc, 26, Los An
geles, arrested yesterday in la
coma; Wilma Jean Davis, 18 ar
rested in Los Angeles, and Dor
othy Louise Wright, 19, arrested
in Broken Bow, Okla., her home
town.
Lewis was arrested in Rose
burg on Aug. 12. Mclntyre was
accompanied byDanny Clark
son, 23, of Los Angeles, when
arrested in an automobile report
edly stolen from Portland. Both
are to be questioned in connec
tion with a post office burglary
aRIBUNE
United Press Full
No Stamp?
off an indication that it was
nearing completion.
By Sept. 15, he said, approxi
mately 100,000 nazis and former
soldiers had been removed or de
nied employment in public of
fices in the American occupa
tion zone.
Some 20,000 other nazis were
removed from supervisory posi
tions in private business and In
dustry and 250,000 more were
being screened.
Elsenhower said a paradoxical
situation prevails in labor with
almost 20 per cent of registered
laborers out of work despite
acute labor shortages in con
struction, coal mining and wood
cutting industries.
JAVA EXTREMISTS
Batavla, Java, Oct. 31 (U.R)
Lt. Gen. Sir Philip Chrlstlson,
Allied commander In the Dutch
East Indies, warned today that
he will throw all his air, land
and sea forces against Indone
sian extremists in Java unless
they surrender the assassins of
Briiish Brig. A. W. Malloby.
Mallaby, British commander
In Soerabaja, was slain by Indo
neslan extremists last night as
he whs leaving his brigade head
quarters In that strife-torn naval
base city.
Chrlstlson's warning of quick
retaliation If the Indonesians
fail to surrender the slayers was
broadcast repeatedly over allied
controlled radio stations in Java.
Lost Boy Found
By Faithful Dog
Tombstone. Ariz., Oct. 31 (U.R)
Hundreds of cowboys and law
officers combed the cactus
studded desert 25 miles east of
Tombstone most of yesterday
and all last night for a missing
three-year-old boy, but it took
the lad's dog to find him at dawn
today.
Little Pat McDonald, son of a
cowhand on the ranch of State
Sen. Ralph Cowan, wandered
away from home early yesterday
with Mac, his dog.
As the search progressed over
an ever-widening area in the
rough desert country, the dog re
turned to his bunkhouse home.
Ed McDonald, the lost buy's
father, was summoned Immedi
ately and was led by Mae
straight to his young master,
who was sitting among the mcs-
quite and cactus about five miles
ilOH hone. . . ..i
Leased Wlra
NO. 189.
fo)
SEIZES CITIES IN
COASTAL SECTION
Two Thousand U. S. Marines
At Chinwangtao Sand
wiched Between Forces
Chungking, Oct. 31 (U.R)
A Central News Agency dis
patch from the north said to
day that the Russians have
thrown open Manchuria to the
armies of Generalissimo Chi
ang Kai-Shek for a showdown
with the Chinese Communist
forces massing there.
The agency said Marshal
Alexander Vaiilevsky, Red
army commander in Man
churia, had agreed to the en
try of Chiang's troops, who
have been pouring northward
aboard American transports
and planes to reoccupy the
areas abandoned by the Japa
nese. If confirmed, it would be
the first direct Russian move
in the undeclared Chinese civil
war.
Chunekine. Oct at iipi a
Chinese communist rnmmnnimi.
announced today that commun
ist troops, operating south of tha
Manchurian border in China's
undeclared War. hflV npMmlArl 4
coastal cfties in the area where
tne u. s. seventh fleet landed
a veteran central government
army Monday.
The communique . said com
munists cut the vital Peiping
Mukden railway in at least two
places by occupying Shanhaik
wan, eastern terminus of the
great Will ninA miln nnptliMc
of Chinwangtao, and Pcitaiho.
eight miles southwest.
Marines Sandwiched
TWO thnllSflnrI IT mawit.
who went ashore at Chinwangtao
were reported sandwiched be
tween the two communist forces.
Information from hnth
ment and communist sources in
dicated 1,000,000 communist
troops and 1,000,000 men under
Generalissimo Chiang Kai-Shek
soon will be engaged in full
fledged civil war if negotiation
for political settlement fails.
Central News Agency report
ed a Chinese communist offen
sive 100,000 strong overran threw
big cities in eastern Snivnnn nnrf
was threatening Kweisui, pro
vincial capital.
The Yenan (communist) rariin
warned the Chungking govern
ment that communists will ah nnf
at government troops If they land
in, or close to, Manchuria from
U. S. seventh fleet ships. A gov
crnment spokesman today admit
ted the warning was received in
Chungking.
(Richard W. Johnston. United
Press staff corresDondent t
Chinwangtao. reDorted thnu.
sands of American-equipped cen
tral government troops had
marched north from Chinwang
tao and massed at Shanhaikwan
yesterday. There was no indica
tion in loaay s communist com
munique whether communist
forces had driven out the nation
alist troops or whether the na
tionalists had withdrawn.)
Truman Too Busy
For Consideration
Of Second Term '
Washington, Oct. 31 (U.R)
It happened today at the White
House President Truman, for
the first time since he entered
the White House, was asked
at a news conference whether
he plans to run for reelection
in 1948.
The president said that,
standing on his rights, he did
not think he had to testify
against himself at the present
time.
And as an added matter of
fact, the president continued,
the matter had not entered his
thoughts; he had been too busy
on other things.
Washington, Oct. 31 (U.R)
President Truman todav whs
made an honorary member of
the University of Missouri
alumni association. He received
a memhershin certificate from
Clark Nichols, president of the
Washington, a. C, chapter ot
the association and 34 other
itagurj aiwnoi.