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Evening star. [volume] (Washington, D.C.) 1854-1972, August 08, 1947, Image 1

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- Weather Forecc it] r,lS “ TT"—
Sunny today, scattered thundershowers his WUlQe TOT K63d6rS
afternoon or tonight, high in upper 80s. Clear, Page. Page,
less humid tomorrow._ Amusements, A-9-10 Obituary a*.»
Temperatures today—High, 84, at~l:36 p.m.; -5“}*° «
low. 73, at 6:34 am. Yesterday—High, 86, at idit^rn ArtiriV*” a *? Clubs/V,Bi?
3 p.m.; low, 70, at 6:44 am. Editoril Articles, A-7 Sports .A-ll-13
__(Ful Heport on Page A-,) _ # Lost and Found, A-3 i Woman’s Page_..B-4
_ Late New York Markets Pope A-15. ' -a a d-s--—
95th YEAR. No. 57,735 Phone NA. 5000. WASHINGTON, D. C., FRIDAY, AUGUST 8, 1947—TWENTY-EIGHT PAGES. City Home J>liverr. Daily and Sunday gj CENTS
Ferguson Climaxes Bitter Clash
With Hughes by Subpoenaing
Papers and Calling Back Meyer
Millionaire Says
Senator Is Trying
To Grab Publicity
Howard Hughes agreed this
afternoon to make available
to the Senate War Investigat
ing Subcommittee his prtvate
papers, which Chairman Fer
guson had ordered seized
under subpoena. As the af
ternoon session began, both
committee officials, and Mr.
Hughes’ attorneys said they
had been unable to locate John
W. Meyer.
Senator Ferguson, Republican,
of Michigan, capped a better
verbal exchange with Howard
Hughes today by issuing a sub
poena for private documents and
papers Mr. Hughes has in a
downtown hotel.
Senator Ferguson's action, as
chairman of the Senate War Inves
tigating Subcommittee, came after
Mr. Hughes had refused to produce
John Meyer, his publicity man, and
had said he would make available
from his papers only those cleared
by his attorneys. A subpoena also
was issued for Mr. Meyer.
This latest in a series of bitter
rows that frequently have inter
rupted the hearings overshadowed
these other developments this morn
1. A charge by Noah Dietrich, a
Hughes Tool Co. official, that Maj.
Gen. O. P. Echols (retired) once
said he would not deal with Mr.
Hughes as a plane builder during
the war because the general dis
liked Mr. Hughes personally.
2. Disclosure by Mr. Dietrich that
Russell Birdwell, another Hughes
publicity man, had admitted he
“padded” an expense account and
incorrectly listed former Secretary
of Commerce Jesse Jones as one of
those he entertained during a visit
3. Admission by Mr. Hughes and
others in his organization that Mr.
Birdwell tried to interest the. White
_:_ - .. .. .
'Attention' Promised
By Attorney General
To Hughes' Charge
Attorney General Clark prom
istd today to give his “atten
tion” to Howard Hughes’ charge
that Senator Brewster, Repub
lican, of Maine offered to cali i
off an investigation of Mr.
Hughes' war contracts if the
plane builder would agree to a
merger of the Trans World Air
line with Pan American Air
Senator Brewster requested
the inquiry after Mi. Hughes,
who controls TWA, accused him
of making the offer during a
private luncheon early this
Senator Brewster made public
Mr. Clark's reply today. It said
the matter would receive his at
tention when the committee in
vestigation is concluded.
The Senator told a news con
ference later he believed there
wa$ “ample justification” for
the Justice Department to push
a criminal libel charge against
Mr. Hughes.
House in the Hughes reconnaissance
plape in July, 1942.
The clash between Senator Fer
guson and Mr. Hughes came when,
shouting “We're not going to argue
with yd^i.” Senator Ferguson in
structed committee aides to issue a
subpoena to seize Mr. Hughes’
papers, supposed to be in custody
of one of the Hollywood millionaire s
auditors in a downtown hotel room.
Mr. Hughes has been staying at
the Carlton Hotel.
Mr. Dietrich told the committee
that, although he had been served
with a subpoena to produce the
documents, he legally does not have
possession of them because they
comprise Mr. Hughes’ personal
“Db you have those papers?
Mr. Hughes.
“I don’t have them on my per
•-(SeTHUOHES. Page A-5.>
U. S. Loyalty Drive
Scored by Russian
ty »h« Associated Press
LAKE SUCCESS. Aug. 8—Russia
charged today that the United
Statets was guilty of serious viola
tions of human rights as a result
of the administration’s campaign to
remove “so-called disloyal employes
from Government positions.”
The charge was made by Soviet
representative Alexei N. Krasilnikov
before the Membership Committee
of the United Nations Security
Council after *he United States
had opposed Bulgaria's application
for admission to the U. N.
Mr Krasilnikov, in a slashing at
tack on the United States, chal
lenged the right of Hayden Raynor,
American representative to criticize
Bulgaria, Hungary and Romania for
violation of human rights "when
, ihe United States might be open to
• even more serious charges in this
respect.” *
t He then asked how the United
States would like the three ex
. enemy states, or any other state,
_ to protest against the anti-Com
munist drive, the “anti-labor legis
, lation” passed by the last session of
Congress or “the recent trial of a
leader of one of the political parties
in the United States of America."
# 9
Odom LandsBombshell atCairo,
Third of Way Around World
Flyer Averages 315 Miles an Hour on Hop
From Paris, Third Leg of Record Flight
CAIRCMP).—William P. Odom
left Cairo today at 6:39 p.m.
(12:39 p.m. EDT) for Karachi,
By tht Associated Press
CAIRO, ' 8.—A third of the
way aroui. e world, William
P. Odom l ed Cairo in his
Bombshell p^ne at 5:44 p.m.
(1:44 a.m. EDT) today.
The Roslyn, N. Y., airman, flying
solo in the converted A-26 bomber,
was 21 hours 51 minutes out of
Chicago, his starting point. He
hoped to complete the circum
navigation feat in 90 hours, beating
the 186-hour solo record set by
Wiley Post in 1933.
Mr. Odom averaged about 315
miles an hour on his flight from
Paris, where he set the plane down
earlier today after an overseas hop
from Gander, Newfoundland. Tail
winds were expected to help him on
the next leg, to Karachi, India.
Mr. Odom stopped in Paris for
rest and a brief refueling before
his takeoff for Cairo.
He left Chicago at 1:53 p.m. (EDTt
yesterday, paused briefly to take on
1,200 gallons of gasoline at Gander,
and then continued on to Paris,
where he took on 2,000 gallons more.
Mr. Odom was offered toasted tur
key sandwiches to eat on the stop
at Orly Field in Paris, but ate only a
chunk of the turkey from one sand
wich, with some tea, leaving the
He said his average across the
Atlantic was 320 miles an hour and
he expected to make good time to
Karachi, since reports of weather
along the way were good.
Mr. Odom said the trans-Atlantic
flight, was "pretty rough” and that
he had to climb to 25,000 feet to get
above icing conditions.
While field attendants were re
fueling his plane in Paris, Mr. Odom
underwent a physical checkup by an
Army doctor to determine whether
(See BOMBSHELLTPage A-4.) ‘
U. S. Puts Cotton Crop
Market Drops $4-$6
Agriculture's Estimate
Is 425,000 Above Those
Of Private Services
By tht Associated Press
The Agriculture Department
today forecast this year’s pro
duction of cotton at 11,844,000
bales of 500-pound gross weight,
an estimated 425,000 bales higher
than the average guess of eight
private bureaus.
Cotton futures immediately broke
$6 a bale in New Orleans and $4 in
New York.
The Federal estimate, based on
conditions of August 1, compares
with last year's abnormally small
crop of 8,640,000 bales and with a
10-year (1936-45) average of 12,390,
000 bales.
When the New Orleans market
opened at 9:15 a.m., following a
20-minute recess for reception of
the report, prices dropped $5.35 to
$6.15 a bale below prices which pre
vailed at the suspension of trading
at 8:55 am.
First sales after reopening of the
market showed October at 33.20
cents a pound, or $6.15 lower. De
cember sold at 32.91, or $5.36 a bale
lower. March was quoted at 32.72,
down 113 points, and May at 32.25,
down 120 points.
The bottom range was 107 to 123
noints lower.
After liquidation had run its
course the market recovered more
than $1 a bale from the lows on
replacement buying and short cov
ering attracted by the decline.
Condition of the crop as of August
1 was reported at 78 per cent of
normal compared with 72 a year
ago and 76 for the 10-year average.
The indicated yield of lint cotton
per acre was reported at 270.8
pounds compared with 235.3 last
year and 250.6 for the 10-year aver
Cotton from this year's crop
ginned prior to August 1 was re
ported by the Census Bureau, in an
accompanying statement, at 198,144
bales. Ginnings to the same date
last year totaled 171,641 and 132,737
for 1945.
Report of Wreck Spurs
Andes Search for, Plane
By the Associated Press
SANTIAGO, Chile, Aug. 8—A
British South American airways
spokesman said today that search
would be resumed for a four-engined
BSA plane, missing since Saturday
with 11 aboard, on the strength of
reports 'of wreckage seen in the
Andes mountains.
The plane—a transport model of
the wartime Lancaster bomber—
was en route from Buenos Aires to
Santiago when it disappeared.
U. S. Reported Getting
Brazil Oil Rights in
Exchange for Loan
Deal for Exploitation of
Fields Said to Depend
On $150,000,000 Grant
By Ernie Hill
Foreign Correspondent of The Star and
the Chicago Daily News
RIO DE JANEIRO, Brazil, Aug.
8.—A tentative oil rights-for
j loan agreement that would open
: Brazil up to exploitation by
I American oil firms is reliably re
i ported to have been reached be
tween Brazil and the United
Americans will be allowed to drill
for oil, if the deal goes through. But
it is contingent on a $150,000,000 loan
which Brazil needs badly for public
improvement projects.
This deal is said to have been
reached about 10 days ago, when
Secretary of the Treasury Snyder
completed a survey of Brazilian eco
nomic potentialities.
If mere are no snags, all of the
big American companies are ex
pected to make a major play for
concessions here. Foreign firms have
been barred from exploring for sub
surface minerals and oil in Brazil
until recently. There has been some
relaxation of this restriction, but oil
companies have not been included.
Efforts to find oil in large quanti
ties, with the exception of a small
oil and gas field around Bahia, have
proved discouraging to date. Amer
ican exploration would pour dollars
into this country and help ease its
growing shortage of dollar exchange.
Some Brazilians, however, oppose
United States drilling. They say all
subsurface wealth should be ex
ploited only by Brazilians for their
Brazil's Communist press ham
mers away at United States par
ticipation daily on the grounds that
if the United States has even partial
control of oil discovered, it will
work to the disadvantage of the
Soviet Union.
Some of the leading newspapers
also are in the opposition camp.
They fear that American oil drilling
would give the United States an
economic interest that would affect
Brazil’s policies.
While it is generally agreed that
President Eurico Gaspar Dutra
badly needs American dollar loans
and is ready to use oil concessions
as a trading point, oilmen want
our State Department to get guar
antees in writing. They recall that
in some instances Latin American
countries have changed their minds
after agreeing tentatively to similar
i arrangements.
Wedemeyer Back ih Nanking
NANKING, Aug. 8 (/P).—Lt. Gen.
Albert C. Wedemeyer returned to
day from a fact-finding tour of
North China and Manchuria.
Employment at All-Time High
As Jobless Rise to 2.584.000
Sy tht Associated Pr«i
Civilian employment mounted to
a new all-time record of 60.079,000
in July, the Census Bureau reported
Joblessness climbed also, reaching
2.534.000 as students sought summer
work and graduates hunted their
first jobs. This was 29,000 above
The month was the second in
which the working force topped
60,000,000, the “full employment"
goal as defined by former Vice Presi
dent Wallace. July employment
topped June, the previous high, by
24.000 workers.
Counting those in the armed
forces, the Nation’s July total of job
holders was 62,664,000.
The Census Bureau noted that in
June and July employment “is at a
summer peak, and includes many
seasonal and part-time workers."
Agricultural employment decimal
310,000,000 from June, but this was
more than offset by gains in the
nonfarm working force.
As against a year ago, the increase
in employed persons totaled 2,239,000.
while the number of jobless rose
about 300,000, the Census report
showed. .
Most of the difference ini unem
ployment from a year ago is made
up of persons 14 to 19 years old who
now constitute about 28 per cent
of all jobless.
‘‘While about the same number of
students have entered the labor
force this summer as last year they
are experiencing more difficulty in
finding jobs,” the bureau reported.
The average duration of unem
ployment in June, the last month
for whic£ information is available,
was only 8.1 weeks, it was stated.
This was a sizeable drop from the
average job-hunting period in pre
vious months of around 11 we$ks.

Commons Votes
Attlee Bill for
Crisis Powers
Churchill, Blasting
Fails to Halt Plan
Sy th« Associated Press
LONDON, Aug. 8. —Britain’s
Socialist - dominated House of
Commons today approved the
government’s sweeping “crisis
powers” bill, described by Win
ston Churchill as “a blank check
for totalitarian government.”
The House gave the bill a second
Reading—approving it in principle—
without a record vote. The govern
ment hoped to push the measure
through all remaining parliamen
tary stages before the Commons’
scheduled adjournment next Wed
An amendment to reject the
measure was defeated, 251 to 148.
The Socialist government says the
bill is necessary for effective deal
ing with the British economic crisis.
It would empower the government
to tell men and wptnen where they
must work and to take over the
management of firms considered to
be operating inefficiently.
Churchill Recalls Hitler.
Home Secretary Chuter Ede,
backing the bill, said: “We believe
that this is a crisis likely to move
forward with such rapidity that we
should have power to deal drastic
ally and swiftly with awkward situa
tions that may aruse.”
Mr. Churchill snapped: “Hitler
said that.”
Launching a powerful Conserva
tive attack on Prime Minister Att
| lee’s Spartan plans for meeting the
economic squeeze — which Labor
'spokesman asserted were “appro
ipriate and necessary ”—Mr. Churchill
I declared:
"The government's proposals will
'mean the abrogation of Parliament
and of all our long-cherished rights.”
Refuses Cross-Examination.
Speaking just before Mr. Churchill
took the floor. Deputy Prime Min
ister Herbert Morrison declared:
"We are not going to be. cross
examined in advance as to exactly
what we will do with the powers
when we get them.”
Mr. Churchill maintained that the
labor and industry controls asked
by the government would destroy
British freedom, and added:
“These powers are the negation oi
British freedom and way of living
in time of peace.”
He said the Socialist ministers
would be “the absolute masters” of
the country while Parliament was in
recess. It is scheduled to adjourn
for the summer next week.
“Is this necessary to the life of
the country?” he asked. “It would
mean a spate of alarm and discour
agement and paralysis.”
Mr. Churchill declared that Mr.
Attlee’s speech Wednesday — in
which the Prime Minister outlined
his “work more, eat less” program
for Britain—was “universally judged
to be inadequate.”
Prime Minister Attacked.
Carrying on in a sharp personal
attack on the Prime Minister, Mr.
Churchill inquired:
“Who is going to wield these
powers? Not merely the prime min
ister, who seems increasingly an
amused passenger in the -pleasure
He declared that the government's
ministers were men who were pre
pared always to put the party be
fore the nation.
In his speech, Mr. Attlee had
called for the "Dunkerque spirit” to
overcome a threatened dollar famine
born of fast spending and under
production. •
“You talk of Dunkerque spirit,”
Mr. Churchill said. "What would
Dunkerque have been if the little
boats were only going to take off
members of the trade unions and it
was said that we didn’t care a
tinker's cuss for the rest?”
This apparently was a reference to
Fuel Minister Emmanuel Shinwell's
speech several weeks ago in which
he was reported to have said “We
(See BRITAIN Page A-4.)
Alaska Hunt Pressed
For Plane and 20 Men
Sy the Associated Press
KODIAK, Alaska, Aug. 8.—Wind
whipped waters along the Alaska
Peninsula and the adjacent Aleu
tians today were the center of a
second day's air and ship search for
a missing Navy PBY-5-A with 20
men aboard.
Seventeenth Naval District head
quarters sajd the Kodiak - based
plane, with 15 passengers and a
crew of five, last reported by radio
at 10:45 a.m. Wednesday. It said it
was 150 miles from its Dutch Har
bor destination, with enough gaso
line for six hours’ flying.
Searchers held the hope the plane
might have made a safe landing in
sheltered waters along the route,
with its radio damaged.
But the Navy yesterday notified
next of kin of Navy personnel that
they were missing. Names were be
ing withheld, it was reported, until
all Army personnel’s kin were noti
The PBY had participated in sev
eral rescue missions itself. The last
one was July 8 when it picked up a
critically ailing fisherman from a
trawler at sea.
V A to Fire8,000 in Budget Cut;
700 Workers in D. C. Included
0 1
Reduction to B$ Made 'as Soon as Possible';
400 or 500 Contact Offices to Be Closed
The Veterans’ Administration
today announced that it would
reduce its personnel by 8,000 em
ployes “as soon as possible.”
•VA officials estimated about 700
of the dismissals would occur in
Washington, with the rest of the
firings in various field offices.
Sharp budget cuts suffered by the
agency necessitates this additional
dismissal of 8,000, VA officials said.
Already 8.000 employes have been
laid off since February.
VA dismissed about 6,000 em
ployes last June in line with per
sonnel reductions ordered under
President Truman’s budget request
for the agencies. But when the
budget request was further slashed
by Congress, the agency immedi
ately had to dismiss another 2,000
employes. The agency’s announce
ment today said that another 8,000
must be dropped soon in order for
it to live within its budget.
The reductions will take place "in
every phase of VA administrative
work," officials said.
During hearings on VA’s 1948 ap
propriations requests, VA officials
warned Congress that additional
personnel cuts would mean a cur
tailment of essential services to vet
Largest reductions are scheduled
for the vocational and education
program, with approximately 2,000
slated for dismissal. Another sharp
reduction will eliminate some 1,700,
or more than 25 per cent, of the
employes engaged in contact work.
VA officials say this will necessi
tate the closing of 400 or 500 contact
offices throughout the country.
Another effect of the personnel
reduction will be a halt to recruit
ment of personnel requested in the
original VA budget for the purpose
of actuarial woric in the insurance
program, officials said. They added
that this will mean the postpone
ment of computing dividends and
refunds to National Service Life
Insurance policyholders.
The personnel cuts will bring VA’s
employment down to 197,000 persons.
Sheet Metal Strikers
Win 25-Cenf Raise;
Will Return Monday
39-Day Walkout Ended
With 15-Cent Boost Now
And 10 More on Jan. 1
The 39-day strike of 500 AFL
sheet metal workers fbr a 25
cents-an-hour wage increase was
settled today with a compromise
increase of 15 cents an hour
immediately and an additional
10 cents an hour beginning
January 1.
The Labor Department announced
that agreement had been reached
through the efforts of Lucian F. Rye
of the Baltimore office of the Con
ciliation Service after both sides re
mained adamant through more
than five weeks of meetings.
The men will return to work
Monday morning.
Chief among construction projects
affected in the District was the new
George Washington University Hos
pital at Pennsylvania avenue and
Twenty-third street N.W., where
some sheet-metal work was halted.
Sunday Reading . . .
Any time an editor sends
around the world to get a story,
it has to be better than good.
THIS WEEK magazine, a reg
ular feature of The Sunday
Star, sent reportorial and
photographic teams to the far
off corners of the globe to find
out what people are saying
and thinking about two years
after the end of the war.
America’s future may be re
flected in the stories they
brought back—and which ap
pear this Sunday in THIS
Just when the sun is laugh
ing aloud at man’s discomfort,
Milady thinks of furs. Eleni
Sakes, The Star’s fashion ex
pert, has completed a tour of
the Capital’s air-cooled fur
riers to see what is in store for
cold weather. Her report,
with pictures, of course, high
lights the Pictorial Magazine.
In the Editorial Section, La
bor Editor James Y. Newton
introduces the new members
and general counsel of the Na
tional Labor Relations Board,
and Political Analyst Gould
Lincoln makes some predic
tions about the Republican
national convention. These
and many other special inter
est features round out the
usual thorough and accurate
news content of
afjp Sunfcag fctar

Netherlands Reported
Planning to Reject
Forced Arbitration
Dutch Said to Be Set to
Refuse U. N. Commission
In Indonesian Dispute
By th« Associated Press
The Netherlands government
was reported ready today to re
ject any plan for compulsory
arbitration of the Indonesian
Informed quarters described the
Dutch position as follows:
1. They already had agreed to ac
cept the “good offices” of the United
States to help settle the undeclared
j 2. They would have no objections
I to a United Nations commission to
'supervise the present truce.
3. They would accept no U. N.
commission either to mediate or ar
bitrate the dispute.
The Netherlands views were made
known as the Security Council put
the Indonesian question aside until
Tuesday afternoon to give the dele
gates a chance to study a new com
municatipn from the Indonesian
government proposing creation of
an arbitration commission.
The Indonesians informed the
Council that, while accepting the
I “good offices” of the United States,
the Jogjakarta government had
asked the United States to try to
(See U. N„ Page A-4.)
Federal Union Chiefs
Reject Langer Plan
For Political League
North Dakota Senator's
Proposal Is Seen as
Hatch Act Violation
By Joseph Young
Senator Langer’s plan to set
up a new national political or
ganization will have to get along
without the support of Federal
The North Dakotan, who is
chairman of the Senate Civil Service
Committee, had asked the various
AFL Government employes’ unions
to interest their members in the
establishment of a national non
partisan league, with the goal of
electing the league’s own choice for
President next year.
Most of the unions were cool to
the idea, but one large postal group
tentatively promised Senator Langer
it would go along with the plan.
Following The Star’s exclusive
story on ’Buesday revealing Senator
Langer’s proposal, however, Civil
Service Commission officials said
participation in the new movement
would definitely be a violation of the
Hatch Act, which forbids political
activities by Federal employes.
The various AFL union leaders
met yesterday and the postal group
decided to follow the lead of other
AFL employes’ unions and reject
Senator Langer’s proposal.
Senator Langer had asked the
unions, which have a combined
membership of more than 500,000
Government employes, to send to
each of their members a copy of
his ‘‘Call to Action” program, which
outlines the goal of the proposed
nonpartisan league. The league
plans to hold a national convention
next year, with the object of captur
ing control of either the Democratic
or Republican Party convention and
nominating its own candidate.

Late Bulletins
Films to Britain Halted »
NEW YORK UP>.—Eric John
ston, president of the Motion
Picture Associat on of Amer
ica, announced today that di
rectors of the Motion Picture
Export Association had voted
to discontinue immediately
shipments of American fea
ture films and short subjects to
Britain. Mr. Johnston said
the ban would cont’nue in
definitely. %
(Earlier Story on Page A-2.)
Kaiser's Widow Dead
BERLIN l^l.—Princess Her
mine von Schoenaich-Caro
lath, 60, widow of Germany’s
last Kaiser, Wilhelm II, died
yesterday at Frankfuram-Oder
in the Russian zone of 'Ger
many, the Soviet-controlled
German news agency reported
Woman Employs Locksmith,
Sends Wrong Buick to Brazil
Somewhere between here and
Brazil today, John Costianes’ auto
mobile was taking a boat ride, the
innocent victim of a first-class Pan
American mixup.
By rights, it should be Lt. Col.
Jose Vincente de Faria Lima's new
1947 Buick headed for the coffee
country. That was the way Col.
Lima planned it when he bought the
car last month.
An official at the Brazil Aero
nautics Commssion. where Col. Lima
is Assistant Air Attache, told this
strange story:
On July 26 Mrs. Othella Pom
pier, secretary at the commission,
was about to drive the car to New
York for Col. Lima and arrange
for the shipment to Brazil.
It was understandable for her
to park the car on Church street
N.W., between Seventeenth and
Eighteenth streets while she went
into a store for some last-minute
Returning, she got into a black
Buick sedan and tried to put the
key in the ignition lock. It didn’t
fit. Resourceful if puzzled, Mrs.
Pompier called an automobile serv
ice agency for a locksmith. He fixed
her a key that would fit.
So off she drove to New York to
fulfill her mission. Yesterday she
breathed a sigh of relief when she
saw a Brazil-bound freighter pull
ing out with the car aboard. She
came back home to report her suc
cess, and ^o laugh with her friends
at the embassy about the key in
cident. '
Somebody thought that was a bit
odd. So did the police when they
heard about it and remembered that
Mr. Costianes of 6501 Sixth street
N.W., reported a missing car on
July 26. He owns the Trio Restau
rant at 1537 Seventeenth street N.W.
They sent a man around to
Church street and he found a new
1047 Buick, just like the one Col.
Lima bought. That was no coinci
dence, because it was Col. Lima’s car.
It appeared there had been a slight
mistake on the part of Mrs. Pompier,
who drove off with Mr. Costianes’
1946 vehicle.
Col. Lima and Mr. Costianes agree
their cars lot* alike, except for the
year and 12,000 miles difference cm
the speedometer.
Truman Accepts
Limit of Nov. 1
On Credit Curbs
But Regrets Lack
Of Legislation for
Indefinite Control
brings warning from bankers.
Page A-4
By Joseph A. Fox
President Truman today signed
legislation continuing curbs on
installment buying until Novem
ber 1, but expressed “regret” that
a time limit had been applied to
the controls.
“It is unfortunate that the Con
gress did not provide for restraints
on installment credit in order to
diminish inflationary pressures aris
ing from this source,” the President
said in a statement in which he
recalled that the Federal Reserve
Board and the Council of Economic
Advisers had urged that the con
trols be kept as long as necessary.
At present, under a oresidential
order, a down payment of one-third
and a 15-month limit on the time
in which the credit must be liqui
dated is in effect on such items as
automobiles, radios and refrig
invoKea wartime Measure.
The controls were Invoked as a
wartime measure, Mr. Truman had
said that he would not care to re
tain them in peacetime in the
absence of a specific* legislative di
rective, which he hoped Congress
would provide.
In his statement today, the Presi
dent said:
“I have today approved the joint
resolution of Congress authorizing
continuation of regulation of con
sumer installment credit until No
vember 1, 1947. I regret that the
Congress did not see fit to follow
the recommendation of the Federal
Reserve Board and of the Council of
Economic Advisers, in which I fully
concurred, by enacting legislation
to provide for continuinng as long
as necessary regulation of con
sumer credit as a means of helping
to promote economics stability. It
is unfortunate that the Congress
did not provide for restraints on
over expansion of installment credit
in order to diminish inflationary
pressures arising from this source.
“Continuation for the next three
months of present controls as now
provided under Regulation W of
the Federal Reserve Board, has,
however, been permitted and implied
by the Congress and this is prefer
able to immediate abandonment of
these'restraints. For that reason I
have signed the joint resolution.”
Urges Self Restraint.
“Not only during the next three
months while the controls remain
in full force and effect, but for an
indefinite period thereafter it will
be in the public interest for every
merchant and financial agency ex- ‘
tending installment credit to avoid
undue relaxation of terms. It will
be far better to reduce prices rather
than to relax terms in seeking new
customers. Self restraint on the part
of those who use dr edit as well as
upon the part of those who extend
it will reduce the danger of an over
expansion of installment credit
which would inevitably be followed
by severe contraction, thereby con
tributing to unemployment and to
reduced production.”
Truman Rejects Bank Measure.
President Truman invoked the
pocket veto for the eighteenth time
since Congress recessed to<jay when
he rejected a measure which would
waive the statute of limitations to
enable the Fidelity Trust Co. of
Baltimore and other companies to
obtain a refund of bankers’ special
taxes which the Supreme Court
held later had been erroneously col
n. similar measure was vetoed in
1935 by President Roosevelt. Both
the Court of Claims and the Bureau
of Internal Revenue held against
the banking concerns in their effort
to obtain reimbursement.
In his veto the President said:
“The Congress has determined
that it is sound policy to include
in the revenue laws statutes of lim
itations, by the operation of which,
after a certain period of time, it
becomes impossible for the Govern
ment to collect additional taxes or
for the taxpayer to obtain a refund
of an overpayment of taxes. This
bill selects a special group of tax
payers for preferred treatment by
excepting them from this policy.
Tne whole body of Federal taxpay
ers is thus discriminated against.”
Sugar Quota Bill Signed.
The President also signed the con
troversial sugar quota bill which
-cuts down the amount of sugar that
Peru and the Dominican Republic
can sell to the United States and
in effect cuts by approximately one
half the amount that Cuba has been
selling to this country
The Cuban cut was effected by a
provision which makes the amount
ol imports from that country de
pendent on Cuba’s satisfying cer
tain private claims held by large
American corporations.
The action on these measures lift
the President but four bills to handle
of the approximately 200 left with
him by Congress.
All of these are expected to be
cleared away today. Press Secretary
Charles G. Ross said.
Principal of Central High
Hurt Slightly in Car Crash
L. G. Hoover, 62, principal of
Central High School here, aijd Mrs.
Hoover. 61, suffered slight injuries
late yesterday in a collision between
their car affd a truck on Williams
burg road, 13 miles east of Rich
mond, Va., according to the Associ
ated Press.
Mrs. Hoover was taken to a Rich
mond hospital for treatment of cuts
and bruises on the head and
shoulders but Mr. Hoover, after be
ing treated for cuts by a doctor,
spent the night in a Richmond
hotel. He reported to relatives hera
that neither was seriously injured.
Mr. and Mrs. Hoover, who live at
116 Baltimore avenue, Takoma Park,
were returned from ijilliamsburg.
J HERE... I'LL /
I Critter out! j
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