Evening star. [volume], July 30, 1948, Page A-6, Image 6

About Evening star. [volume] (Washington, D.C.) 1854-1972

Image provided by: Library of Congress, Washington, DC

                
Additional Territory
Demanded by Jews as
Result of Victories
I, ♦*>* A»»»ciq**d Pmi
tel AVIV, Israel, July 30.—Israel
today demanded new territories In
Palestine—perhaps Including Jeru
salem—as a result of Jewish vic
tories over -Arab armies.
* Foreign Minister Moshe Shertok
served notice of the Jewish de
mands yesterday in an address be
fore the Israeli State^ Council. He
said: '
The Arabs are responsible that
>he boundaries fixed by the United
Nations no longer are practical
and we must insist on changing
rhem by adding territories and not
by diminishing them.”
Mr. Shertok said Israel plans im
mediate steps to place Jerusalem
under Jewish sovereignty. Israel,
ie added, has rejected Count Folke
Bernadotte't plan to demilitarize the
Holy City because it provided for
eventual Arab rule.
Change of Plan Demanded.
Earlier, a cabinet source said the
Israeli government has told the
u. N. mediator that it will discuss
the demilitarization plan further jf
he publicly renounces his original
plan to put the city under Arab
rule.
Mr. Shertok also told the 37
member council that:
1. Israeli authorities will refuse to
permit the return of any of the
300.000 Arab Refugees to their Pal
estinian homes until their status
can be considered as part of a
minority question, including the
status of Jews in Arab states.
2. Israel will demand "heavy In
demnities” from the Arabs in peace
negotiations for what he called
"hundreds of millions of dollars lost
by direct war expenses.”
He reiterated previous appeals to
the Arabs to negotiate directly
Jewish-Arab differences as “co
partners of equal rights and sov
ereignty.”
Arabs Reported Planning
To Stop Jerusalem Water
AMMAN, Trans-Jordan, July 30
OPt—A responsible Arab source said
today that Trans-Jordan will not
permit water to be pumped to Jeru
salem's Jews through Legion-held
territory.
Legion troops control the Latrun
pumping station, which a Jewish
engineer attempted to enter recent
ly. He was arrested but released
after United Nations intercession.
Snyder ,
(Continued From First Page.)
The measure would make it more
difficult for banks to lend money, a
move to halt the inflation spiral.
In a question-and-answer period
frequently punctuated with sharp
interchanges with Republican Sen
ators, Secretary Snyder said he ap
proves the President's price-control
proposals as emergency measures
only. He said he generally does not
favor such controls "but neither am
I in favor of castor oil.”
Senator Flanders, Republican, of
Vermont then asked the Secretary
if he favors castor oil for "chronic
constipation.”' the Senator’s de
scription of the long-term inflation
problem.
Mr. Snyder replied that such tem
porary measures as price control
would give time to atudy means of
meeting thfl Itinf-rapge problem.
Eccles Hit Snyder.
At yesterday’s hearing before the
committee, Mr. Eccles testified that
Mr. Snyder was responsible for hav
ing removed from the President’s
message to Congress last November
a Federal Reserve Board proposal
to raise reserves required of banks
on deposits. Mr. Eccles said it is
now too late to control inflation but
that its effect may still be softened
in the ' bust'' he said he expects
will come.
Mr. Ernes was deposed as chair
man of tile Federal Reserve Board
by President Truman alter his dis
pute with Secretary Snyder. He
still is a member of the board.
In a prepared statement read to
the committed today, Secretaiy
Snyder said passage of the Presi
dent's eight - point anti - inflation
program, "would strike a major
blow against inflation.”
He specifically indorsed the Ad
ministration proposal to grant the
Reserve Board new authnity to in
crease reserve requirements and
thus take money out of circulation,
Mr. Eccles and Thomas B. McCabe,
who succeeded Mr Eccles as Re
ceive Board Chairman, both in
dorsed the proposal yesterday.
Mr. Snyder told the Senators
that expansion of hank credit as
far as agricultural industrial and
commercial loans are concerned,
has not contributed to the in
flation. Sucn loan:, he said, have
actually gone down since last No
vember.
But the increase of $1,750,000,000
in consumer credit since last No
vember 1, when the one-third down
payment regulation ended, has con
tributed to inflation as have housing
loans Mr. Snyder said, adding that
total consumer credit reached an
all-time peak of $13,800,000,000 ip
May.
bees Prices Bid I p.
In indorsing the point in Mr
Truman’s program calling for re
newal of consumer credit controls
on purchases of such items as auto
mobiels, stoves and refrigerators,
the Treasury chief said the addi
tional purchasing power provided
by permitting the public to buy such
goods with only a few dollars down
payment "can be used only to bid
up prices of consumers’ goods.”
"The relevent question now is not
how much consumer credit the
country can bear but how little it
can do with,” he said.
Mr. Truman was asked at his
news conference yesterday why he
included the credit controls in hjjs
message to thi* special session after
not having done so last Novamber.
He replied that conditions had
changed.
Would Cut Expansion.
The administration bill provides
that the Federal Reserve Board may
raise member bank reserve require
ment* by 10 per cent on demand
deposit* and by 4 per cent on time
deposits. These moves would have
the effect of cutting down the
amount of money the banks could
lend and thus would have a defla
tionary effect.
Mr. Eccles said yesterday, how
ever, that such a plan should apply
to all banks, not just Reserve Sys
tem banks, because of the competi
tive situation between reserve and
non-reserve banks.
Mr Eccles’ testimony yesterday
Included a statement that Congress
would not escape it* share of re
sponsibility failure to give the
Senator Reed Asks to Enter
'Dewey University of Politics'
ly th# Aiieciatcd fmt
Senator Reed, Republican, of
Kanaa* wants to take a course in
the “Dewey University of Politics."
Alongside of Dewey graduates, he
says, he's a political amateur.
So, he made public today a letter
he has sent to Herbert Brownell, jr.,
campaign manager for Gov. Thomas
E. Dewey, the Republican presiden
tial nominee and one of a trio of
top Dewey advisers.
Senator Reed wrote:
“Dr. Herbert Brownell, Dean,
Dewey University of Politics, New
York, N. Y.
“Dear Dean Brownell:
"I have lived a long time and
have had a fair amount of contact
with public affairs. Through the
i years I have been an observer of
politics and thinp political and have
accumulated some experience along
that line
"After spending the week begin
ning June 19 at Philadelphia and
watching graduate* of the Dewey
University operate, I realize that
all my previous experience and
observation had been along ama
teurish lines.
"I covet the sure touch of Dewey
graduates. I desire to enroll for
at least one semester at the next
; session of the Dewey school. I
would be pleased to know the re
quirements for enrollment, the
length of the term, and the possi
bility of obtaining a degree.
"Yours for more certainty in
politics.” _____
reserve system adequate powers L
control expanding bank credit;
which he considers a prime infla
tion cause.
He warned of a coming "bust” end
some "unpleasant adjustments" eco
nomically, and said everybody wants
the “benefits" of inflation but no
body wants the unpleasant results
Original Plan Defended.
Mr. Eccles stoutly defended hit
original plan for siphoning off some
of the money available for credit
expansion. He wanted the Federal
Reserve System to be given power
to require that banks set up special
reserves against their deposits.
Mr. Eccles said Mr. Snyder’s stanc
was a great surprise to him and tc
the Federal Reserve Board.
| it was not long after the dispute
between the two that Mr. Truman
j replaced Mr. Eccles as chairman of
the board by appointing Mr. Mc
Cabe
While Mr- Eccles made It plain
that he places responsibility on Mr
Snyder's Treasury Department for
Mr. Truman’s omission of the re
serve plan for controlling bank
credit last year, he said there were
other factors too that doomed it.
Bank Opposition Cited.
"In due respect to Mr. Snyder, I
don’t want to imply that we would
have gotten the authority if he had
been favorable to it or if he had
said nothing,” Mr. Eccles said. “We
had very formidable opposition from
the banking fraternity,”
Detailing what he said were the
events of last fall, Mr. Eccles said
Presidential Counsel Clark Clifford
called him and asked for recom
| mendations on restricting bank
credit. Mr. Eccles said he worked
with the Treasury on those recom
mendations.
"It seemed that up to that time
we had no opposition from the
Treasury. We prepared a statement
which we thought was going tc
be included in the (President’s)
message. To our great surprise ii
had been deleted.
“We learned from Clark Clifford
that its deletion was due to tht
Treasury.”
Later, Mr. Eccles went on, he ad
vocated the plan in testimony befor<
congressional committees "with thf
understanding that the Treasurj
would interpose no objections.'’ Bui
a short time later Snyder came out
in opposition, he said.
jt •%. '. *» »(*»»£ ww • »
Economic
(Continued Prom First Page.!
i-rr t- rw - 4 - - ' ’ ^
1 created shortages ct plant and lift
ventory,” WhicR'should mean largW
output and the easing of the proa*
isme on prices.
i Report Strongly Urges Controls.
Significantly, the report poiptec
out that in 1947. more than one
I fourth of all families were spending
more than they earned because ei
- rising living costs.
The Economic Council, headed by
Dr. Edwin G. Nourse, came out more
strongly than ever before for emer
: gency controls. The council was
created under the Employment Act
of 1946 to steer the country away
from recurrent beams and busts.
Voluntary efforts by individual
companies and unions to check the
wage-price spiral have "evaporated.’
the council said. Prices are ad
vancing’"on a broad front.”
"It is therefore necessary that
! the Government should have and
i^>e powers in the interest of eco
nomic stability.”
Income Tax Cut Criticised.
The council criticized the $5,000,
000,000 income tax cut, passed by
! Congress over a presideitial veto, in
{these words:
"By reducing tax rates despite
inflationary prospects, we have
acted like an engineer who releases
his emergency brake—in the face ol
an emergency.”
The council also foresaw a man
power problem, wdthin a year, it
estimated. 1.003,000 more workers
will be needed to strengthen the
armed forces and produce military
goods.
With civilian employment now at
a record high of 61,300,000, the coun
cil predicted:
"There will arise numerous labor
shortages in some arras of the
country. This will cause disturb
ances in some spheres of civilian
'production and upward pressures
| on wages and other costs.”
*
Plane Falls on B.&O. Track
Near Laurel; Pilot Unfiurt
By the Associated Press
LAUREL. Md., July 30.—A light
plane, with a 21-year-old Plainfield
tConn.l youth at the controls
1 crashed on the Baltimore d: Ohic
railroad main line tracks near here
late yesterday.
The eastbound track was tied up
15 minutes while the plane was
being moved to the side, but the
pilot. Phillip Johnson, colored, was
not hurt.
Mr. Johnson crashed while tak
ing of! from a heavily weeded field
beside the right-of-way. He did not
explain w'hy he had landed there.
Adjutant General Award
Honors Miss Mazourek
Miss Marie Mazourek was sched
uled today to become the first wom
an employe of the Army Adjutant
Oeneral's office to receive the De
partments Award for Exceptional
Civilian Service.
Miss Mazourek, who lives at 2121
Virginia avenue N.W.. wa* to re
ceive the award from Maj. Gen. Ed
i ward F. Witsell, the Adjutant Gen
eral. at a ceremony in the Pentagon
The citation for her services notec
particularly her contribution in
•simplifying the classification and
identification of tables of organi
zation and equipment and field anc
technical manuals." She has beer
in the office since 1917.
In cold-blooded reptiles and ver
tebrate* arterial and venoua blooc
mix.
Man Is Held in Theft
Of Ring He Swallowed
A man who police said swallowed
a diamond ring was held under $10.
000 bond in Municipal Court today
to make aure he remaina In police
custody until the ring is recovered.
Police said a fluoroscopic exami
nation showed the $350 ring in the
stomach of Stafford t>. Lowry, 20,
of the 800 block of Xenia street S.E.
Although Lowry was charged by
j police with robbery, he was not
brought into court on that charge
| today. It was explained that the
ring is the evidence end until the
ring is recovered, action will be
withheld.
Lowry and Joseph R- Cipolari, 24,
of the 600 block of South Twentieth
street, Arlington, Va., both were
charged with sodomy. Cipolari, who
told police it was his ring, was held
under $1,000 bond. The ease was
continued until August 5.
When Judge George D. Neilson
asked Assistant United States At
torney Robert Short why he re
quested a $10,000 bond for Lowry,
Mr. Short explained about the
swallowed ring. Once the ring is
recovered, he said, the question of
bond can be re-opened.
Police said Lowry swallowed the
ring at the time he wes arrested on
complaint of Cipolari. According
: to police, Cipolari iaid he picked up
Lowry in Lafayette Park and drove
him to Rock Creak Park. While
| there, he said, Lowry took the ring
D.C.Man in Tokyo as Head
Of Air Force Personnel
Col. Brintnall H. Merchant of the
Air Force, former branch manager
; for Commercial Investment Trust,
Ipc., a finance company here, has
arnvea in ipayt
to assume a new
position as per
sonnel chief ol
the Far East Aii
Forces Head
quarters there
the Army an
nounced.
Col. Merchant
haa been cn ac
tive Armv dutj
since4540- when
'he ISft the firm
here after 11
years' employ
jment to become
' tive. Office Of the ChW of Mr corps.
He subsequently «»* servlet in *
number of assignments in the South
west Pacific and later became deputy
1 assistant chief of staff, headquarters
of the Air Transport Command.
Col, Merchant’s wife, Mrs, Alice
Purdunn Merchant, with whom he
made his home here at the West
i Chester Apartments, is en route to
Seattle. Wash., where she wih board
an Army transport to join him.
D.t. AirReservs Squadron
To Me 2 Wsoks' failing
Members of the J5lh Fighter
Squadron, Ah Force Reserve, will
leave Union Station at 7 am. Sun
day for two weeks’ active duty at
; Mitchell Air Force Base, N. Y- It is
the first Air Reserve organization
to be assigned to active duty as a
unit.
The squadron, comprising 40 offi
cers and 37 enlisted men, met last
night at the Air Force liaison office,
3131 C street N.W., for final brief
ing. The group will be under the
command of Lt. Col. Robert Hoover.
Col. William O. Eareckson, com
manding the Air Reserve training
detachment at Andrews Air Force
Base, said today the squadron will
take part in actual bombing and
i fighter missions during its active
duty training. The squadron was
originally activated as a pursuit
squadrcn, assigned to duty at the
Panama Canal. Deactivated in 1944,
it was reactivated la£t year as a
Reserve unit.
Four Convicted In Japan
In Drug Smuggling Case
By the Associated Press
YOKOHAMA, July 30—Three
Americans and a Chinese were con-1
vieted by general court marshal j
today of smuggling and attempting
to sell on the black market penicillin
and streptomycin worth millions of
yen.
Lt. Francis P. McLaughlin, 34. of
Charleston. Mess., was sentenced to.
dismissal from the United States!
Army and fined $3,000.
Robert Meulding, captain of the
American fireighter, flying Arrow,!
was sentenced to five years at hard
labor and fine# $1,000. His con-'
finement was suspended when' he
paid the fine.
Sergt. Grover C- Broutley, 29, of
Jessup, Ga., was convicted of loadipg J
the drug aboard a Jeep and was
sentenoed to six month confinement, I
reduced to a private and fined $45
of his pay.
The Chinese, Myo Fung Nien, to
whose wife Lt. McLaughlin allegedly
delivered the drugs, was sentenced!
to six months hard labor and fined!
3,000 yen. His wife and others Chi
nese are still to be tried.
Hails Selassie. Buys Horses
Buying cavalry horses for Abys-;
iinia, an agent for Haile Selassie
has placed orders for 500 in Aus
tralia and plans to obtain more in
that country.
Since 1919
Fine
Residential
* Week"
risers sate. foliinee
I I
De Gaulle Stumping
France for Votes
Ry th« Allot iottd hill
PARIS. July 30.—Gen. Charles de
Gaulle is taking his plea for votes
to the grass roots of Prance. He
has been battling tg> regain control;
of the government for more than a
year. He resigned as Premier in
1046.
Now he’s on the bustlings In
earnest. He made three speeches
in Atlantic coast villages last week
end. Tomorrow and Sunday he goes
inland to Nancy, Mulhouse and
Oolmar.
His immediate objective: To win
votes for his new political party—;
the Rally of the French People;
fRPF)—in this fall's local canton
election*. In last winter's municipal
elections he pulled the RPF into
first piece, ahead of the Commu
nists who finished second. About
40 per cent oi the nation’s city
councilmen now are RPF members.
Cantons, where elections are tent
atively scheduled for October, cor
respond to counties in the United
Statas.
The RPF has only a sprinkling of
representatives in the National As
sembly because the partv was
formed after the last general elec
tion. But Gen. de Gaulle's follow
ers said he plans to gain control of
key cantons just as his party took
over the city administration in
Paris, Marseille, Bordeaux and ether
key municipalities.
New Polio Case Increases
Total in Area lo 28
One new case of infantile paralysis
v.as reported in the Washington
area yesterday, bringing the total
this year to 28, of which 11 are Dis
trict cases.
The latest sufferer was identified j.
as an 11-year-old boy who lives
in the 200 block of West Jefferson
street. Falls Church. He was ad-i
mitted to Children's Hospital last
Friday.
While District Health Department
officials say they are not alarmed
by the figures here, polio is reported
going up a bit in other parts of
the country outside of three States
already hard hit.
Epidemic proportions are reported,
however, only in North Carolina, j
Texas and California.
Surgeon, Facing Knife Himself,
Dramatically Seeks Missing Son
ly the Auociated Press
CHICAGO, July 80.—A dramatic
appeal to his 21-year-old son to
return home to his wile and two
small children was made yesterday
by his father, Dr. Willis J. Potts,
internationally known “blue baby"
surgeon.
The doctor came from his oper
ating room to face reporters he
had called for a press conference,
He pointed out that millions are
spent chasing criminals and indi
cated the hope that "trying to find
a boy worth saving” was news
worthy.
The son, Robert Eugene Potts,
after nearly completing his third
year in the pre-medical course at
the University of Rochester (N. Y.),
disappeared on June 2. Dr. Potts
said his son, who was an honor
student and had taken a heavy
course, left a note saying he was
going to New York City and then
to California.
“I think he had been working too
hard,” Dr. Potts told the reporters
he had summoned to Children's Me
morial Hospital where he is chief
surgeon.
Facet Operation Himself.
Dr. Potts, who is the discoverer of
one method of “blue baby” opera
tions, has performed about 130 such
operations since 1946, including one
yesterday before he called the news
conference.
He told reporters he had delayed
undergoing a gall bladder operation
“because I wanted my boy with
me.” He said he had conducted a
continuous search since his son left
Rochester. He will be operated on
tomorrow.
Young Potts was married two
years ago to Joan Fiedler, his child
hood sweetheart, whose father, Ed
ward, is a vice president of the
Pabst Brewing Co. His brother,
Willis J., jr„ is a student at the
University of California and a sister,
Judith, 15, is a high school student
in suburban Oak Park.
As Dr. Potts faced the news con
ference he flopped wearily into a
chair.
“Thanks a lot for coming, boys, I
need your help. Two things have
come to a head at the same time.
Believes Son Worked Too Hard.
“First, my ron disappeared June 2
from the University of Rochester.;
He was in his third year of a pre
■MawamwmnwmapMnawwmmmamwwwMaM
Or. P*IU.
Eefeert Pella.
medical course and had several jobs
on the side. I think he had been
working too hard.
“Now I have to go to the hospital
myself this afternoon. They’re go
ing to perform a gall bladder opera
tion on me Saturday. I’ve been
putting it off as long as I can, be
cause I wanted my boy with me.
Now I can’t put it off any longer.
“We spend millions chasing crim
inals. I suppose, though, that try
ing to find a boy worth saving isn't
news. *
"This sort of publicity is horrible
for me, but I don’t care. I'm ready
to do anything to get him back.”
Dr. Potts nervously smoked ciga
rettes in chain fashion as he filled
in the details tor questioning re
porters.
Sought Son in Times Square.
“Did you ever wander around
Times Square in New York from 9
o'clock in the morning until mid
night, hoping to see a face you were
looking for?" Dr. Potts asked. “I
did—several times. When I got tired,
I sat on the fenders of parked auto
biles.”
He has no idea why his son left
home, except the belief he had
worked himself into a state of com
plete exhaustion.
Dr. Potts studied surgery of “blue
babies” at Johns Hopkins Univer
sity. “Blue babies" have malformed
circulatory systems preventing suffi
cient oxygen from entering the
blood. He then discovered a new
method of chest operation, whereby
the pulmonary and aorta arteries
are Joined.
Northern Ireland has set aside
$t,000,000 to acquire beauty spots for
preservation.
Defense Unit to Study
Service Pay Increase
Secretary of Defense Forreetal
announced today that his advisory
commission studying service pay
will hold a seriea of meetings next
month to discuss proposed recom
mendations for increased pay with
representatives of Army, Navy and
Air Force enlisted personnel.
The representatives will appear
by Invitation on datee to be an
nounced.
The commission, headed by
Charles R. Hook, former president
of American Rolling Mill Co., has
been studying service pay since
December. Mr. Forrestal said its
report “is expected to form the
basis of recommendations to Con
gress next session for pay scales in
all branches of the armed forces
and for their correlation with pay
in the Coast Guard. Public Health
Service and Coast and Geodetic
Survey.”
The commission was appointed
after a joint Army-Navy Fay Board
recommended salary Increases which
averaged around SB per cent for
officer personnel.
Mr, Forrestal said the question of
extra pay for flying, which has been
criticised on Capitol Hill, Is the
subject of a “personal” study by Mr.
Hook.
2 Boys Held in Fatal Beating
Of Sister, 2, Who Cried
ly lh» A.ikIo'W rilll
MOORHEAD, Minn., July 30.—;
Two boys, B and 11, will face Juve- t
nile Court here Thursday on charges j
of delinquency in the fatal beating;
of their 3-year-old sister.
G. L. Dosland, Olay County attor
ney, said the boys—each Warning
the other—admitted yesterday that
they beat their sister Joyoe - with
a hoe handle because “she wouldn’t
stop crying.”
The boys, Joyce and the nine
other children of Mr. and Mrs. Clif
ford Halvorson were left alone ip
their one-room home Tuesday, the
night the beating took place. Mr.
D?3land said the Halvorsons were
attending a carnival at the time.
France is cutting Angora wool
sales to America because of a short
supply at home.
CARE Food Parcels
Quality Unchanged
High food costs have yet to fore*
any ehange in the quality or qtan
ity of food package* prepared by
the Co-operative for American Re
mittances to Europe.
This was reported yeeterday by
Paul Comly French, executive di
rector of CARE, who spoke at a
press meeting in the Mayflower
Hotel.
For the first time, a pound pack
age of rice will be added to each
food parcel, starting Monday. Mr.
French sMd this was possible be
cause of the easing of the world
rice shortage.
C. Tyler Wood, assistant to tha
deputy administrator of the Eco
nomic Co-operation Administration,
told newsmen ECA programs could
not possibly supply the personal
touch" that is provided when Ameri
cans send CARE parcels abroad.
ECA will work itaelf out of a
job in four years. Mr. Wood said, but
private foreign relief agencies have
s long-range job.
A letter from Chairman Vanden
berg of the Senate Foreign Relations
Committee was read. The Michi
gan Senator said that, while ECA
is Indispensable to reconstruction of
overall economic systems, "it doea
not and cannot substitute for the
direct aid to stricken peoples which
Pas been so spectacularly furnished
by CARE."
CARE officials reported a sharp
falling off of sales of the parcels,
rhey sell for $10 each.
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