Evening star. [volume], July 30, 1948, Image 1

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96th Year. No. 212. Phone STerling 5000 WASHINGTON, D. C., FRIDAY, JULY 30, 1948—THIRTY PAGES. °
End of Special Session Aug. 7
Now G. 0. P. Goal, Taft Says;
Speech Blasts Truman Program
Ohioan Tells Senate
President Can Halt
Inflation but Won't ,
BULLETIN
Chairman Taft of the Senate
Republican Policy Committee
today set August 7—a week
from tomorrow—as the goal
for adjournment of the spe
cial session of Congress. He
told the Senate during a heat
ed debate on inflation, housing
and the civil rights program
that the GOP leadership’s plan
calls for a decision one way or
the other on the anti-poll tax
bill by Wednesday and a re
port from the Banking Com
mittee by that date on any
further inflation controls that
stand a chance of enactment,
such as new limitations on
, bank reserves and credit. Sen
ator Taft said the economic
report President Truman sub
mitted today disproved the
need for any emergency hous
ing legislation.
Senator Taft, Republican, of
Ohio charged on the Senate floor
today that President Truman
“has powers to halt inflation,
but is not using them because
“he knows if he did so farm
prices would go down” and some
unemployment would result.
He charged the President “doesn’t
want to halt inflation,” although he
could act by raising the banking
rediscount rate and limiting the
purchase of Government bonds by
the Federal Reserve Board.
The Senator said it is generally
agreed that the latter step would
have a deflationary effect and that
some people fear it might “turn the
whole thing upside down” almost
overnight.
In an exchange with Senator
Barkley of Kentucky the Presi
dent's running mate in November.
Senator Taft said Mr. Truman had
taken credit in his Philadelphia
acceptance speech for the huge in
come of farmers today and for high
industrial wages but was blaming!
the Republicans for the inflation
which is the inevitable result.
Committees continue worn. |
The Senator said the President
had made the same kind of politi
cal speech to Congress last Tues
day. at which Senator Barkley re
plied that the speech at least had
given Senator Taft an oportunity
to make ‘‘another political speech.”
The Senate floor discussion on in-;
flation and who is to blame for it
came as congressional committees
continued their consideration of
President Truman’s 8-point anti
inflation program, presented in de
tail to the House Banking Com
mittee.
Porter to Appear Again.
Paul A. Porter, former OPA ad
ministrator now' serving as special
assistant to Mr. Truman, was to ap
pear again before the House Bank
ing Committee where he yesterday
outlined the administration plan for
rollback authority. He stated, how
ever. that the plan is not likely to
lower current prices and is designed
more to keep them from going any
higher.
Secretary of Agriculture Brannan.
due to be a witness shortly before
the House committee, was reported
to be considering a meat rationing
scheme involving special meat pur
chase certificates. Mr. Porter said
yesterday meat would be one of the
items to be rationed if the admin
istration bill passes.
The scheme would involve issuing
certificates in the same denomina
tion as money, with just enough of
them to be issued to cover the avail
able meat supply at reasonable
prices.
This “meat money” would be di
vided evenly among consumers and
consumers would give a $1 meat
certificate—along with a regular dol
lar bill—when buying $1 worth of
meat.
Just how the certificates would be
distributed is reported to be an in
complete detail of the scheme. Mr.
Brannan may go into details when
he testifies, it was reported. t
Stock Market Hits Slump,
Prices Off 1 to 2 Points
ly the Associated Press
NEW YORK. July 30.—'The stock
market ran into a slump today, with
prices dropping an average of from
1 to 2 points, but there was only a
moderate volume of selling.
The decline picked up momentum
In the second hour of trading, j
Superior Oil dropped 20 points.
Other oils were off more than the
average.
The turnover was 230.000 shares
the first hour and 480,000 the sec
ond. This was heavier than yester
day but well below the heavy selling
of some other recent price drops.
Rail stocks declined in reaction to
the Interstate Commerce Commis
sions decision allowing them to
make their freight increases per
manent.
Hog Price Sets Record
Of $31 a Hundredweight
By tht Associoted Press
CHICAGO. July 30—Trading in
live hogs established a new record
high price today at $31 a 100 pounds.
The previous mark of $30.50 first was
paid last September 11 and matched
July 12.
These prices compared with the
year's low point of $21 on May 5
and the $28.50 top a year ago today.
Sharply cut fresh country receipts,
aggregating approximately 40.000
head for the week to date, accounted
for the upward surge to a large ex
tent.
Steers went back to $41.00, the
recent all-time record price.
Control of Bank
Credit Needed,
Snyder Insists
By Chalmers M. Roberts
Secretary of the Treasury
Snyder said today he has not
changed his position “one iota”
on the need for bank credit con
trols since his disagreement last
fall with former Federal Reserve
Board Chairman Marriner S.
Eccles.
Testifying before the Senate
Banking Committee. Mr. Snyder
said he favors the administration's
request for additional authority for
the Reserve Board, a move which
would have the effect of limiting
loans as a means of halting the
inflation spiral.
But he told the Senators he was
not against the general idea last
November, but only against "one
specific item" in the proposals then
advanced by Mr. Eccles. This
"item” was an Eccles plan to re
quire additional "special reserves”
of the banks as an emergency
measure.
Tobey Sees Bill Approval.
After Mr. Snyder finished, Chair
man Tobey of the Banking Commit
tee said he was "encouraged to
think” that a bank credit control
bill will be approved by his commit
tee, probably by a week from
Monday.
This was the first of President
Truman's eight anti-inflation pro
posals to win any positive Republi
can approval at the special session,
i See SNYDERTPage X-6j~
Republicans to Give
Poll Tax Filibuster
Recess OverWeek End
Decide Not to Press
For Showdown Until
Next Week at Least
By J. A. O'Leary
Republican leaders decided to
day not to k«¥p the Senate in
Saturday session on the anti-poll
tax bill.
As soon as the Senate met at
noon, acting Majority Leader Wher
ry announced that at the conclu
sion of today's debate the Senate
will recess until Monday.
This bore out earlier predictions
that the GOP managers would wait
until next week before trying to
force a showdown on whether this
first of the civil rights bills can be
taken up.
Meanwhile, the Southerners were
ready to keep the opposition debate
going all afternoon. Senator Stew
art, Democrat, of Tennessee, re
sumed where he left off yesterday
evening, under a unanimous consent
agreement.
Adjournment Resolution Waits.
Senators Maybank, Democrat, of
South Carolina, and Robertson,
Democrat, of Virginia, were waiting
to take up the arguments against
Federal legislation to forbid poll tax
payment as a requirement for voting
in Southern Stafei.
Senator Johnston, Democrat, of
South Carolina, had planned to seek
a vote today on his resolution for
immediate adjournment of the spe
cial session, but with the House
in recess already until Monday, he
probably will wait until then.
All indications are that the Re
publican managers will be ready to
adjourn two weeks from now, btrt,
they want to stay here long enough
to show the magnitude of the pro
gram President Truman called on
them to pass quickly.
With the Senate rules playing
into their hands, the Southerners
appear likely to succeed sometime
next week in blocking a Republican
move to shut off debate by invok
ing the cloture rule.
Bill Not Yet Before Senate.
The ace in the hole'held by the
Southern bloc is a Senate precedent
that cloture (limiting of debatei
cannot be applied until a bill is
technically before the Senate. The
bill is not before the Senate, be
cause the Southerners began talk
ing yesterday against the motion to
take it up.
Meanwhile, there were reports the
Republicans may take some action
before they go home on these three
subjects:
i> base tne rules governing ad
mission of displaced persons to the
United States: i2> approve the $65.
000,000 loan to the United Nations
to put up its new home in New
York City, and i3> liberalize the law
which limits the cost of housing
construction for veterans to $1,359
per room.
Week End to Be Cooler
With Drop in Humidity
Cooler weather is in sight for the
week end. when Washington may
receive the benefit of cool air moving
in from the Midwest, the Weather
Bureau reported today. Their is a
possibility of thundershowers to
night or tomorrow.
A maximum of 92 degrees was pre
dicted for today, but a layer of pro
tective clouds kept the temperature
down to 79 until noon, a stiff breeze
sent the clouds scurrying, however,
and with the sun blazing down, the
temperature jumped to 84 within
the next hour and promised to reach
the predicted temperature before
sunset.
The cooler weather tomorrow will
be accompanied by temperatures in
the low 80s, less humidity and north
west breezes, the forecaster pre
dicted.
Inflation Peril
Ignored on'Hill/
Truman Says
Report of Advisers
Citing New Dangers
Sent to Congress
By Joseph A. Fox
President Truman warned Con
gress anew today of “developing In
flationary conditions which en
danger both our domestic strength
and our place in world affairs.” He
accused Republican lawmakers of a
"blind disregard” of the inflation
evil.
“Lasting prosperity is not as
sured," the President declared in
calling again for laws to "forestall
a business collapse^’ such a crash
may come, he said, as a sudden cli
max to the leapfrog game of wage
and price increases.
In the face of the icy reception he
got on Tuesday when he presented
his program in person, Mr. Truman
renewed his demand for sweeping
anti-inflation powers in sending
Congress the semi-annual report of
his Council of Economic Advisers.
The report reemphasized the fac
tors making for instability in the
Nation's business structure.
“It is not too late for preventive
measures, and we are not yet forced
by the tragic consequences of de
pression to adopt measures which
would interfere with our free econ
omy far more than would any or
all of the measures I have proposed,”
Mr. Truman said. “I realize that
the anti-inflationary program I
have offered will impede some busi
ness plans, will curb some profit
opportunities and may limit some
wage advances. It is of the very
essence of a plan to counteract in
flation that this be done. All groups
will ultimately benefit when it is
done.”
iue ruunuu. sei ujj unucr me
ployment Act to chart business
trends, found three primary sources
of the inflationary troubles facing
_uer demand for goods
and services; business demand for
investment goods and demands aris
ing from expanding Government
defense and foreign aid programs
which press strongly on production.
2— The third round “of substan
tial wage and price increases in
major basic industries" whose effect
is felt in many related lines.
3— Continuing credit expansion.
"The facts add up to a clear and
disconcerting conclusion." the econ
mists’ report said. “In spite of some
favorable factors, we are in the
midst of gathering inflationary
forces which day by day are im
posing additional hardships on
countless families, and day by day
are undermining the foundations of
the remarkably high level of post
war prosperity that we have thus
far maintained.”
The report said new housing may
price itself out of the markA “in a
few years at most" if present costs
continue.
Cost Rises 20 Per Cent in Year.
The average cost of new houses
has jumped 20 per cent in the past
year while the average family's in
come after taxes has gone up only
about 8 per cent, the council said.
The council agreed with industry
estimates that the Nation will get
more than 1.000,000 dwellings in,
1948, including remodeling jobs.,
About 450.000 new houses and apart
ments were started in the first six
months of the year.
Two counteracting influences to
the general inflationary trend, the
report said, are improved agricul
tural production and an increase in
industrial expansion.
In amplification it was said that
while the full effects will not be
felt for some time yet, the greater
abundance of basic crops ‘'should
be of signal aid in the checking Of
inflation and the progressive work
ing out of stable relationships."
On the industrial side the report
said, “we appear to be nearing the
end of the strong impact of war
'See ECONOMIC, Page~4^6.i
Molotov Absent
t
From Moscow,
U. S. Informed
Appointment Sought
By Embassy for
Ambassador Smith
By the Associated Press
MOSCOW. July 30.—The United
States Embassy was informed
today that Foreign Minister
Molotov is out of town.
The Embassy had called the For
eign Office for an appointment with
Mr. Molotov for Ambassador Walter
Bedell Smith, who returned to the
Soviet capital yesterday from con
sultations in Berlin and London on
the situation in Germany.
The Foreign office told the Em
bassy that a deputy foreign minis
ter, Valerian A. Zorin, was on duty.
The Western powers seek to talk
with Mr. Molotov on the German
crisis. The British-licensed German
press service said Mr. Molotov is
absent from Moscow “on a vacation"
of undetermined duration.
Briton Sees French Envoy.
Gen. Smith's approach to Mr.
Molotov was made in connection
with the Ambassador's recent talks
in London and Berlin on Berlin.
German and other questions.
Frank Roberts, a private secretary
to British Foreign Secretary Bevin.
and Gen. Smith both went directly
from their residences to the British
and American Embassies during
the morning.
Mr. Roberts, former British Min
ister to Moscow, accompanied Gen.
Smith back to Moscow from Berlin.
Mr. Roberts made several diplomatic
calls during the day, including one
on French Ambassador Yves Cha
taijneau.
There were strong indications
that, like the United States. Britain
and France would make individual
approaches to the Soviet Union on
the Beilin and German questions.
Chances Declared Good
For Big Four Session
BERLIN. July 30 (/Pi.—A Soviet
offer to feed ail Berlin drew little
response from Germans in Western
sectors of the blockaded city today
and the Russians loosed new at
tacks on the, anti-Communist city
government.
Informants in Moscow, mean
while, said the chances are good
that a Big Four session to thresh
out the Berlin crisis may take place
in Paris in September, if prospec
tive talks between envoys of the
Western Allies and Soviet Foreign
Minister Molotov go* off satisfac
torily.
Russians in Berlin charged that
the city administration was “sabo
taging” Soviet feeding efforts, sched
uled to begin Sunday, by prevent
ing the unloading of imported grains
in Berlin's barge harbors.
City officials denied the charge
and an American military govern
ment termed it "a lot of poppycock.”
Hindrances Denied.
The American spokesman said
neither the city government nor the
three Western military governments
had placed any hindrances in the
way of Russian food or forbidden
any Western Berliner to accept such
food.
He said the Russians were miffed
by the apparent failure of their
feeding gesture and now are seeking
to inspire a public revolt against
the elected city government to ad
vance their schemes to gain Com
munist control over all Berlin.
The Western Berlin press reported
that in three days of registration
only 3,800 Western Berliners had
solicited ration cards in the Soviet
sector. The three Western sectors
have a population of more than
2,000.000 who are being fed through
the British-American air lift.
New Violations Charged.
The official Soviet organ Taegliche
Rundschau charged new violations
of Russian air lanes by British and
American planes. The paper said
“urgent measures are necessary for
the protection of Soviet planes
against possible air catastrophes.”
The Russians have been mention
ing these “measures" ever since their
ground blockade of Berlin five weeks
ago forced the Americans and Brit
ish to supply Western Berlin by air.
American officials believe the Rus
sians may be pi's paring to announce
the closing of one or two of the
three air corridors linking Berlin
with the British and American zones.
Gen. Lucius D. Clay. American mili
tary governor, has stated that in
the event of such a Russian move,
the transport planes would continue
to fly as before. _
Chicken Truck May Take Biffle
On One-Man Poll for Truman
Grass Roots Views
Of Midwest Citizens
To Be Aim of Tour
A few weeks hence. President
Truman should have a good idea
how things are shaping up po
litically in six or seven Midwest
ern States.
The report will be submitted by
Leslie L. 'Les> Biffle, one of the
Presidents closest friends on Cap
itol Hill.
Mr. Biffle, often described as Mr.
Trumans "eyes and ears” at the
Capitol, is planning to take to the
road soon to sound out sentiment
in several States.
It will be a sort of one-man poll
of what the people are thinking and
what they want.
Mr. Biffle, who will make the trip
alone, said he will touch six or
seven States.
He won't be traveling as Mr. Tru
man's emissary, or for that matter
as director of the Senate Demo
cratic Policy Committee, his present
official position on Capitol Hill.
He may travel as a farmer in a
rented chicken truck. Mr. Biffle is
considering that, but says his plans
haven't been completed.
However he goes, he will talk to
LESLIE L. Bit tut..
farmers and the average citizens on
their own ground and find out what
their views are.
•‘I hope to get away in a few
weeks.” Mr. Biffle said. His tour
probably will be delayed until the
special session of Congress ad
journs.
Mr. Biffle plans to sound out senti
ment in West Virginia and Ken
(See BIFFLE, Page A-5.)
He'll Fix That Dual Control ... in November!
Retail Meat Prices Cut
After Buyers Hold Off;
Five-Week Low Seen
99-Cent Porterhouse
Is Hailed as Bargain;
Respite to Be Brief
Retailers made further slashes
in meat prices today in a move
to overcome growing consumer
resistance to high prices.
One large chain store yesterday!
reduced sirloin steaks twice in less
than 12 hours as the trade sought
to meet competitors’ reductions.
This concern ordered a 6-cent cut
in steaks at the beginning of the
day, and before the close of busi
ness had reduced steaks another 6
cents a pound.
Two large stores of a co-operative
chain In the Washington area re-,
duced prices of lamb about 10 cents,'!
veal about 8 cents and pork cuts,
5 cents a pound. One of the stores
sold top grade loin lamb chops at
$1.09 a pound as against $1.29 a
week ago.
Prices at 5-week Low.
Dealers refused to term it a price
war, but one retailer commented:
"Everybody is cutting prices ”
He noted that some price cuts in
meats followed the Government's
proposal to Congress for authority j
to roll back prices on essential cost,
of liviny ityns to levels of last
November in so far as it’s practi
cable.
An official of another chain
grocery described meat prices as
the lowest in at least five weeks.
This store posted such unusual bar
gains for housewives as 49 cents
for rib end pork roasts and 65 cents
for chuck roast.
A larger chain cu^ meat prices
late yesterday as follows:
Shoulder of lamb, 69 to 63 cents
a pound; lamb loin chops, $1.10 to
99 cents; rib lamb chops, 95 to 85
cents; porterhouse steaks. $1.10 to 99
cents; sirloin steaks, $1.05 to 93 cents,
and chuck roast, 73 to 65 cents.
Retailers Take Loss.
Many of the reductions meant re
tailers were talcing a loss, because
wholesale prices remained high.
An independent butcher summed
up the problem this way:
"I have dropped my prices a little,
out if I drop them much more. I'll
take a big loss. Of course, if I don't
sell the meat. III take that much
more of a loss. So I don’t know
what to do."
Another retailer observed that
"people are buying very little under
these high prices."
In Baltimore the price of meat
dropped as much as 11 cents a
pound.
Stubborn Consumers Win.
Wholesalers and grocers attribu
ted the drop to the piling up of
supplies because of consumer re
sistance to soaring prices. It was
the first sharp decline in meat
prices in Baltimore in several
months. ,
The trade held out little hope,
however, that prices would remain
down. After present stocks are,
sold out, their place will be taken
by higher priced meats from the
West next week.
Then, the demand-supply strug
gle will start all over again.
Bulletins
Woman Found Dead
The body of Mrs. Frances V.
Drew, 60, of 5614 Fourteenth
street N.W., was found in her
smoldering bed early this
. Afternoon after a maid in a
nearby home had turned in a
fire alarm.
Czech Wins 10,000 Meter
OLYMPIC STADIUM, Wem
bley, England <&.—Wobbling
and grimacing all the way,
Emil Zatopek of Czechoslo
vakia captured the first final
event for men on the Olympic
track and field program today
—the 10,000-meter run.
(Earlier Story on Sports Page)
2 Reported Killed in Blast
BIRMINGHAM, Ala. <&'■—
Two miners were reported
killed and at least 13 injured
today in a blast at the Ten
nessee Coal, Iron & Railroad
Co.’s big Edgewater coal mine.
Justice Rutledge Accused
In Denver Iraftic Court
By the Associated Presl
DENVER. July 30— Supreme Court
Justice Wiley Rutledge was charged
in Denver's Traffic Court today with
reckless driving and takhtg the right
of way.
The 54-year-old jurist. who has
been vacationing at Boulder for
three weeks, was driving a car in
volved in a collision jit,.* residential
area here yesterday.**'.
Patrolman Paul M^yerle said Mrs.
Virginia SlaughenhjUgp; 36. of Den
ver, an expectant mother .^v»j>s
slightly injured in the accidagnRpK
was riding in the Other verajHgpr
Lowell White, Denveci jKorney,
representing Justice Rutledge, said
the Justice would appear before
Traffic Judge Hubert D. Henry “just
like any other citizen involved in a
misfortune."
D.C. Highway, Water,
Oth'er Employes Lose
Pay Raise by Ruling
GAO Leaves Door Open
For Increase to Those
Paid by District Funds
D. C. PAY RAISE HOPES Shift to
Dirksen Plan for Federal Lorfn.
Page B-l.
The General Accounting Office
today ruled that the $330 Federal
pay increase should not be
granted to employes of the Dis
trict in the Highway and Water
Departments, in self-supporting
boards and commissions and to
those paid with Social Security
and Public Health grants.
The door, however, was left open
for authorizing the Federal pay
increases for employes in so-called
"outside" Federal agencies who are
paid by District funds.
Acting Controller General Frank
L. Yates, in a letter received by the
Commissioners today, said a ruling
would be issued soon on whether the
pay raise should be granted to em
ployes of the officer of the Recorder
of Deeds, the Commission on Mental
Health, the Register of Wills and
National Capital Parks.
Other Requests Anticipated.
“If there if doubt whether em
ployes of any of the other so-called
outside agencies are employes in or
under the District government,” the
ruling continued, "it is presumed
that requests for decision will be
presented by the proper officer in
each of those agencies.”
Those agencies, who, thus, will
have to present their own request
for a ruling' on the pay raise in
clude the Washington Aqueduct, the
National Guard and the probation
system.
The controller general's ruling ex
cludes from the pay raise workers on
the Boxing Commission, the Real
Estate Board, the Armory Board and
the District Unemployment Com
pensation Board. Also denied the
pay raise are employes paid from
trust funds and those employed un
der working capital funds.
Today’s rulings were in response
to a nine-point request for clarifica
tion sent by the Commissioners to
the controller general on July 20
after Congress had enacted a Fed
eral pay raise and excluded District
employes.
One of the Commissioners’ re
(See~FISCAL, Page A-5.)
Hoffman Announces
European Currency
Clearance Accord
International Settlements
Bank to Handle System to
Back Up Marshall Plan
ly the Associated Press
Economic Co-operation Ad
ministrator Paul G. Hoffman to
day announced a new plan of
European currency clearance
which he termed "a milestone in
real co-operation among the
European countries for economic
recovery.”
Mr. Hoffman returned last night
from a week-ledf visit at the Paris
headquarter^ o(. the Organization
of jBd^ean Economic Co-opera
tion, where the currency plan was
worked out. •
The system, designed to free the
currency jam which obstructs intra
European trade and production, has
been approved ‘‘in principle" by the
United States and the 16 Marshall
Plan countries, Mr. Hoffman told
a news conference. It is to be
effective October 1.
Mr. Hoffman said the plan pro
vides for a “broader and more thor
ough clearance arrangement” han
dled by the Bank for International
Settlements at Basle. Switzerland.
For two years, clearance has been
nearly paralyzed because of the un
willingness of some countries to ac
cept more of the currency of “per
sistent creditor” nations.
It also provides for the funding
of such “persistent debts” into long
term loans, with fixed schedules of
repayment and the granting of addi
tional credit by the better-off coun
tries to the debtor powers.
European Labor Leaders
To Become ERP Advisers
LONDON. July 30 (£*>.—'Western
European labor leaders were told to
day they would be given “full oppor
tunity” to serve as advisers in the
European Recovery Program.
The promise was made in a state
ment by Paul Hoffman, economic
co-operation administrator, read to
a meeting of trades union chiefs
from the 16 nations co-operation in
the American-backed recovery drive.
Mr. Hoffman's statement said
unidn leaders would serve as advisers
to chiefs of ERP missions with "the
responsibility of establishing con
tacts with non-Communist trade
union leaders in Europe * * * and to
serve as a channel of information
and advice on matters affecting the
recovery program.
CIO official. Victor Reuther. one
of several American union leaders at
the conference, told delegates "It is
not America's intention to establish
in Europe a carbon copy of their own
brand of capitalism." He said there
must be more recognition of Euro
peans' rights to establish democratic
socialism in their countries if they
wished. —
15 Executed by Greece
ATHENS, July 30 i/P).—Fifteen
persons, including six women, were
executed yesterday in Lamia after
being convicted by a Greek mili
tary tribunal of charges that they
helped and harbored Communist
guerrillas.
Senators Open Probe of Reds
In U. S. Jobs; Ex-Spy to Testify
By th« A»sociot«d Pr«s*
Chairman Ferguson called his
Senate Invetsigating Committee
together today to begin public
hearings at 2 p.m. on alleged
Communist infiltration into Gov
ernment agencies.
Miss Elizabeth Bentley, who has
been identified by Senators as a
“one-time Communist espionage
agent ” was listed as a witness.
She’ has been testifying before
closed sessions of Senator Fergu
sons expenditures subcommittee.
She also was a witness before the
New York grand jury which recently
indicted 12 national Communist
leaders.
Senator Ferguson said the hear
ings are In connection with a Senate
inquiry into loyalty of Federal em- j
ployes. <
I
New York newspapers said that
Miss Ben tie*-, described as a sec
retary-stenographer in a New York
business house, supplied the tip
which led to the indictment of the
Communist leaders. They are ac-j
cused of seeking to overthrow the
United States Government.
She is scheduled to testify later
before the House Committee on Un
American Activities.
The Communist Party officials
were indicted last week. Robert G.
Thompson. New York State chair-1
man of the party and one of the
12, surrendered in New York City
yesterday. He will be arraigned for
pleading before a Federal judge»
after the FBI questions him.
Ten of the 12 are now in custody,
including William Z. Foster, head)
of the party.
0
■ i
President Tildy
Of Hungary Quits
As Reds Jail Kin
Son-in-Law Arrested
On Espionage and
Treason Charges
ly the Associated Pree*
BUDAPEST, Hungary, July 30.
—President Zoltan Tildy re
signed today after the Commu
nist-dominated government had
arrested his son-in-law, Victor
Csornoky, recently Minister to
Egypt, on charges of espionage
and treason.
Mr. Tildy. a Methodist minister,
belongs to the Smallholder Party,
which had an elected majority be
fore the Communist coup In May
of last year. He was the first presi
dent of postwar Hungary and re
tained that office after the coup.
Mr. Tildy. hcOcever. had been un
der Communist pressure for a year
or more.
Resigned As Minister.
Mr. Csornoky resigned as minister
to Egypt yesterday, about two weeks
after his return from Cairo.
An excellent source said the presi
dent s resignation has reached th#
Speaker of Parliament and will be
announced officially tonight. Th#
speaker under the Hungarian consti
tution is deputy to the president.
The Council of Ministers has dis
cussed the question of a successor.
Political sources said they believed
the former Socialist leader Arpad
Szakasits, is likely to succeed Mr.
Tildy. He now is chairman of th#
unified Labor Party.
Became President in 1946.
Mr. Tildy became President of
Hungary February 1, 1946. on proc
lamation of the nation as a republic.
PRESIDENT TtEDY.
—AP Photo.
He had been premier since the pre
vious November.
There were reports last year that
he was to he ousted by the Com
munists, but they did not materi
alize. President Tildy paid a state
visit to Moscow last February and
was a guest of Prime Minister Sta
lin there during signature of a
Soviet-Hungarian treaty.
The President was the only can
didate for the presidency at the
time of his election, having the in
dorsement of all parties.
Mr Tildy apparently has been ft
marked man ever since he became
President of the Hungarian Re
public.
The evidence all has pointed to
the likelihood that the Communist*
neither liked nor trusted him. He
led the militant, moderate Con
servative Smallholders' Party to
postwar victory, only to see it fall
into obscurity under the weight of
the Communist coup.
Mr. Tildy, now 59. remained Pres
ident only by Communist toleration.
But he was President in title only.
The Communists have been in firm
control of the country since May,
1947, when, with the tactics now
familiar, they announced they had
uncovered a plot against the coun
try. They forced the resignation of
Premier Ferenc Nagy, head of tha
Smallholders, later brought about
the dissolution of the Smallholder
dominated Parliament and, in th#
elections of August, 1947, gained
complete control.
Minister Since 1929.
Mr. Tildy’s prominence dates from
World War II. He was a working
Methodist minister since 1929. and
before the war a rather obscure
member of the Smallholders who
held a seat in the lower house of
Parliament.
When the Nazis occupied Hun
gary in March, 1944, he became
active in the anti-German under
ground. On the liberation of Buda
pest by the Soviet armies in 1945.
Mr. Tildy became president of thft
National Committee of Budapest.
In November, 1945, he led hi*
Smallholders to victory over six
other parties in the first postwar
(See HUNGARY, Page A-5.)
Sunday Reading . . .
. The curtain of secrecy has
been pulled back far enough
at the Fort Belvoir Engineer
Research and Development
Laboratory to reveal that four
top German scientists are im
portant members of the staff.
An exclusive illustrated story
by Stanley Baitz in The Sun
day Star Pictorial Magazine
shows and tells how these men y
fit into “Operation Paperclip.^'
With the main convention*
out of the way, Gould Lincoln
and Raymond P. Brandt, vet
erans of many politU
make some election
in the Editorial Sectio
special attention to luc < 1 w
gressives and the South’s .
“Splinter” party.
These and many other fea
tures supplement the usual
thorough and accurate news
content of
£1)t &undag fctar
' \
1