AMA Probe Involves
Prepaid Medical Care,
Justice Unit Says
■y th« Aj»ociot«j Prut
The Justice Department says it
is investigating the American
Medical Association and 15 af
filiated organizations because of
complaints of an effort to “mo
nopolize” prepaid medical care
plans.
Attorney General McGrath is
sued a statement after the AMA
Board in Chicago had disclosed
the inquiry and complained that
its offices had been broken into in
a search for records.
Mr. McGrath said:
“The Justice Department has
received numerous complaints
from doctors and the„ general pub
lic charging the American Medi
cal Association and certain other
medical associations with conspir
ing to restrain and monopolize
the prepaid medical care plans not
conducted under their sponsorship
and operated in competition with
plans controlled by them.
May Take Further Action.
“Should the investigation dis
close that the complaints are well
founded and a violation of law
exists, further action by the De
partment of Justice to eliminate
such violation. would seem to be
indicated.”
Tne justice Department nrst re
fused to comment but William C.
Dixon, West Coast head of the
anti-trust division, provided first
details of the Government’s aims.
He told reporters in Los Angeles
that the Department is looking
Into the-Los Angeles’County Medi
:al Association’s relationships with
hospitals. *
He said the FBI also is inquiring
Into charges of discrimination
against doctors who participate in
medical service groups, and is
interested in claims that nop
members of the association have
been barred from hospitals and
hospital. services through the
American Medical Association’s
system of accrediting hospitals.
Funds Grants Considered.
"In some instances, we are in
formed the medical association has
refused to place hospitals on the
American *Medical Association ap
proved list unless all doctors on
the staff belong to the associa
tion,” he said.
"In other instances American
Medical Association members who
are directors of hospitals have
ruled that only American Medical
Association doctors can use the
hospitals’ facilities.
"We are also inquiring into the
effect of this system upon alloca
tion of public funds to hospitals,
to determine whether or not they
have been denied grants by
Federal and other agencies.”
Navy
(Continued From First Page.)
tended to be used for mass area
bombing.’
3. That the Air Force "is con
centrating on slow, expensive, very
vulnerable, single-purpose, heavy
atomic bombers at the expense of
small, fast bombers and extremely
high performance fighters for
q which we now have such an ur
gent need in great numbers.”
4. That the Air Force decided
last January to step up its B-36
procurement program "prior to
any inter-service discussion in
spite of the fact that this major
shift in emphasais concerned not
only a weapon, but more im
portantly, a theory of war and
the strategy for waging war.”
5. That the Navy does not want
to develop carriers "to usurp a
primary role of the Air Force in
atomic bombing," but insists car
rier aircraft would be needed in
any future war "to insure con
trol of the air in vital sea areas.”
6. That while the Navy and
the British have jet fighter planes
with "excellent high altitude per
formance,’’ the Air Force ap
parently does not and "the re
tarded development of fighters
not only has distorted evalua
tion of the vulnerability of the
high level bombers; it also may
have grave implications in the
defense of our own military bases
and in the defense of our own
homeland.”
Says He Has Wide Backing.
After Admiral Radford read his
prepared sstatement, Mr. Vinson
noted that he had said he was
not givin gthe official views of the
Navy Department.
Admiral Radford said he
emphasized that because he had
not discussed his statement Mr.
Matthews and did not know
whether the Secretary concurred.
M* Vinson asked him who |
shared his views. He replied that
in “the broad aspects” of what he
had outlined as his concept of the
function of naval aviation in a
future conflict he had the concur
LOST.
BEAGLE BOUNDS (2). 14 and 16 mos.
old. 1 female. 1 male, black, tan and
white. Reward. HI. 2679._—9
§ ILLFOLD, alligator: cards and licenses,
eward. $10. Call DU. 6640. Apt. 308.
—7
BILLFOLD, black, contains several identi
fication cards: lost somewhere between
George Washington Univ. and old House
Office Bldg. Large reward. Call NA.
3120, Ext. 712. between 9 and 5 p.m.;
after 6 p.m. call FR. 9674,_—9
BLOND COCKER, female, answers to “Pop
corn," missing from Plnecrest, Va., since
Sun.; child's pet: reward. AL. 6412, —10
BLOUSE, beaded, initialed; lost in cab en
route to 2400 16th si. Saturday night.1
Reward. HO. 3843._ —8
CLOTH BAG, Mack, lady's; at 21st and
M sts. n.w. at 1:30 P.m.. Oct. 5. Return
papers, please. Reward. WA. 7104. —7
DOG, boxer, brown, from 29 Brookside
dr., Plnecrest, Va.; name •‘Axel” stamped
en collar tag; 3 broken-hearted children
anxiously await pet’s return; reward. OV.
6987,7*
GLASSES, light brown or blond; maybe on
bos HO/ 6366, JULIA.
GRAND ARMT star-shaped emblem,
lady’s; Sunday, on 13th between Clifton
and Fairmont. $6 reward. AD. 8692. —8
GREAT DANE, male, brindle; near Herring
Bay. Reward. North Beach 5031 or RE.
7400. Ext. 61108.—7
PASS CASE with sipper and snap fastener,
containing $100, 26c certificate and iden
tification card, all desperately needed.
Reward. Ml. 3567.—7
, RING with 3 pearls in row: lost Social
Security Bldg., Hecht’s or Kann’s. GE.
7857,__—8
SALESMAN'S DIART. “Week At a Glance.’’
Tues., in Park Pbarm., Tak. Pk.; contains
personal papers. WA. 3731._
UMBRELLA, green silk, amber handle.
Reward. EM 1479._—8
WRIST WATCH, lady’s, Gruen; lost 8ept.
SO bet. Glenn Dale and East-West bwy.
Reward, WI. 4670. _
FOUND.
COCKER, Mack and white; vicinity Duke
st.. Alexandria. AL. 3621. ,
ftRlST WATCH, lady’s; on Mlntwood pi.
B.w. Owner call MR. SMITH, CO, 8U9,
NAVY HEADS QUESTIONED AT HEARING—Admiral Denfeld
(lower left), Chief of Naval Operations, and Navy Secretary
Matthews (center foreground) listen to questions from members
of the House Armed Services Committee during the opening
session of a hearing on the state of Navy morale. Representa
tive Edith Nourse Rogers, Republican, of Massachusetts (right
center) and Admiral William F. Halsey, retired Pacific war hero
(upper right center, scratching chin), were among the spec-'
tators.
—AP Photo.
-:-- I
rence of practically every senior
officer of the Navy on the active
arid retired lists.
Asked for names, he mentioned
Admiral William F. Halsey, who
sat nearby; the Navy's other three
fleet admirals—Chester W. Nimitz,
Ernest J. King and William D.
Leahy; Admirals Denfeld, chief of
Naval Operations; W. H. P. Blan
dy, Atlantic Fleet commander, and
Richard L. Conolly, naval com
mander in the Eastern Atlantic
and Mediterranean area.
“I could go on down the list,”
Admiral Radford said, but Mr.
Vinson said, "No, that’s sufficient.” j
Tells or B-36 Procurement.
Admiral Radford, who was vice :
chief of naval operations early
this year when the Air Force an
nounced its expanded B-36 pro
curement plans, recalled that “on
the morning of January 12, 1949,
the Chief of Naval Operations and:
I did not know that the Air Force
had any plans for the B-36 other
than to cut back its procurement.” j
“We learned about the Air
Force plan for additional procure-,
ment by reading the morning
newspapers of that date.” Admiral
Radford said. “From conversa
tions which I had with Mr. For
restal (the late James V. For
restal, first Secretary of Defense)
that morning it is my strong be
lief that this was also the way he
learned about this major shift in
the procurement plan of the Air;
Force.”
Thus, Admiral Radford contin
ued, Mr. Forrestal and the Chief
of Naval Operations, the'latter a
member of the Joint Chiefs of
StafT, were placed “in the diffi
cult and anomalous position of
either going along with the Air
Force plans or repudiating them
after they had been announced to
the public and to the aircraft in
dustry.”
Admiral Radford said the Air
Force had started buying B-36s,
in quantity without the thorough!
proving which should precede
large-scale procurement of any
new weapon.
He said a group of the Navy’s
top aviation technicians would
follow him with elaboration of his
contention that the B-36 will not
do what the Air Force claims for
it. Much of this testimony prob
ably will be heard by the com
mittee in closed session.
Air Battleship Opposed.
“We do not quibble over minor
differences of opinion as to the
range, altitude and speed of the
B-36,” he emphasized. “It is an
unquestionable fact that the plane;
is capable of flying long distances
^ith heavy loads. Indeed, this
characteristic is its only qualifica
tion as an ‘intercontinental’
bomber.”
“Are we as a Nation to have
‘bomber generals’ fighting to pre
serve the obsolete heavy bomber—
the battleship of the air?” Admiral
Radford asked, then answered:
“Like its surface counterpart, its
day is largely passed.”
Admiral Radford, in reply to
questions, said Navy aviators had
never been permitted to fly the
B-36. He said also that the
weapons evaluation group has not
yet passed on the big bomber.
Admiral Rarford said that there
had been a very valuable ex
change of flyers between the
services, but that Navy flyers “have
not been allowed” to pilot the
B-36.
Pleads For Evaluation.
On the question of evaluation,
Admiral Radford said the pro
cedure is supposed to evaluate the
big plane’s performance in doing
the job it is supposed to do.
“To deliver atomic bombs on a
distant target?” Representative
Brooks, Democrat, of Louisiana,
ftskcdi *
“Yes," Admiral Radford replied.
“I am pleading for an evaluation
and it has not been given to us.”
Jdr. Vinson asked Admiral Rad
ford if it were not true that the
Navy was given opportunity to
explain its needs in defense bud
get planning sessions and other
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meetings of high defense officials.
Admiral Radford replied that
this was so. but that the Navy
could not get its thinking across
to persons having little contact
with its concept of the importance
of a mobile carrier-borne air
striking force.
He said that “some of our civil
ian secretaries" were in that cate
gory and that there was little
hope for improvement until “we
deal with people who have a bet
ter understanding."
But. Mr. Vinson persisted, wasn’t
the Navy’s strength traditionally
related to the sea power of poten
tial enemy nations?
Admiral Radford said that was
the case “until 1940. when the
Navy became air-minded.”
Now, he said, its importance is
in its ability “to project mobile
air power anywhere in the world
where there’s enough water, and
that's a large part of the world—
no other nation can do that."
Representative Short of Mis
souri, ranking Republican member
of the committee, asked Admiral
Radford if the committee was to
understand that the decision to
buy more B-36’s “was not jointly
reached." Admiral Radford said
that was true and that the decision
apparently was made by the Sec
retary of the Air Force.
Mr. Short then asked if Admiral
Radford believed Air Secretary
Symington “overrode" the Navy in
the matter.
““I feel that he did in that in
stance,” Admiral Radford an
swered.
The House group is making an
inquiry into current official think
ing on how the three armed serv
ices should share the task of pro
tecting the United States in the
event of another war. Specifically,
it wants to find out why many
high-ranking Navy officers are
unhappy with their lot under
armed force unification and
whether they are justified in their
fears for the future of their
service.
Meanwhile, Capt. John G. Crom
melin, suspended for his admitted
distribution of copies of official
correspondence in which three
admirals, including Admiral Rad
ford, indicated concern about the
Navy’s status, was awaiting pre
ferment of formal charges.
He was confined to the Dis
trict—a modification of an order
which, as first drawn, restricted
him to his Georgetown home.
Dr. Lucas Resigns Post
At Sweet Briar College
By the Associated Press
SWEET BRIAR. Va., Oct. 7.—
Resignation of President Martha
B. Lucas of Sweet Briar College
effective June 30, 1950, was an
nounced yesterday by Dean
Mary Ely Lyman at a meeting of
students and faculty.
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Girl He Mel in Prison
Saves Burglar From
Serving 10-Year Term
By the Associated Press
BALTIMORE, Oct. 7.—The love
of a girl he met in prison in
California has saved a convicted
burglar from going back for 10
years.
The love of blond Peggy Peterson
persuaded the usually stern Judge
Robert France to set free today
the man she had followed across
the continent.
But the judge said marriage will
have to wait' a while.
Up for sentence was 24-year-old
William J. Sansbury on charges of
forgery amounting to $875. The
judge found him guilty, sentenced
him to 10 years and suspended
sentence, saying:
“It is her belief in you that to
a large extent is responsible for
your receiving a suspended sen
tence. Do not let her down.”
Three Probation Terms.
The judge then set three unusual
probation terms in addition to the
customary regulations which are
for three years.
“One, no part of Miss Peggy
Peterson’s personal funds are to
be used to make restitution.
“Two, you and Miss Peterson
are not to marry during the pe
riod of one year. I have discussed
this with Miss Peterson and she
agrees.
“Three, that if. as and when
you receive Federal money from
your national service life insur
ance, you will use this sum toward
making restitution.”
Met in San Quentin.
Miss Peterson met Sansbury in
San Quentine prison. He was
serving 21 months for burglary
and she worked there as an office
clerk.
When Sansbury was released re
cently he was returned to Mary
land to face the two-year-old
forgery charges. The 22-year-old
girl took her life's savings of $600
and flew from San Francisco after
him.
At his trial she offered $200 of
her remaining $240 to help Sans
bury make restitution. “Judge, I
know he’ll go straight,” she
pleaded.
Tonight the couple will have
their first date. Prison cells had
made it impossible before.
The date palm is the sacred
tree of the Arabs.
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Home Show Exposition
Includes Small Railroad
A $100,000 minature railroad
system will be among the more
than 250 exhibits in the third
annual Home Show Exposition
opening at 2 p.m. tomorrow at
the National Guard Armory.
The railroad exhibit, which
takes 16 hours to assemble and,
has 1,500 connections from con
trol points to tracks, is a minia
ture of the Baltimore and Ohio
Railroad's famous Cumberland
division.
In conjunction with the nine
day show, the Home Builders’ As
sociation of Washington will hold
the semi-final judging in the
‘‘Television Queen” contest at 7:30
tonight at the Wardman Park
Hotel.
The six contest semi-finalists
from a field of 75 will be judged
chiefly on beauty and talent in
the finals Tuesday night at the
Armory.
Another feature of the show
will be the talent contest for Gov
ernment employes the finals of
which will be held October 16.
In answer to the baby sitting
problem for those wishing to at
tend the show, a nursery with two
nurses on duty will be operated
during show hours from 2 until
10 p.m.
Infant Flies 12,000 Miles
The youngest air passenger to
arrive in Sydney. Australia, after
the 12,000-mile flight from Lon
don was a 1-month-old girl, wno
arrived the other day.
A. & P. Suit May Lead
To Tax-Free Co-op,
Rep. Mason Warns
Representative Mason, Repub
lican. of Illinois, called on Congress
yesterday to close loopholes in the
Federal tax laws which he said
more than $1,000,000,000' of rev
enue is being lost annually.
Mr. Mason warned that the
Government’s prosecution of the
Great Atlantic & Pacific Tea Co.
on antitrust charges may force
that large grocery chain to con
vert into a tax-free co-operative,
thereby depriving the Government
of more than $15,000,000 a year
in taxes.
He quoted John Hartford, pres
ident of the grocery chain, as
threatening to do that if the Gov
ernment’s action succeeds. “I am
informed,” Mr. Mason added, “that
a score of other big companies
are ready to follow A. & P.’s lead
in avoiding taxes.”
Mr. Mason charged that "doing
business without paying taxes is
becoming a national racket.”
Among them, he said are many
educational institutions which are
investing their funds in business
in competition with others that
pay taxes.
The Illinois representative is
author of a bill to impose income
taxes on the business earnings of
certain exempt corporations and
organizations. That bill is now
before the House Ways and Means
Committee and will be considered
in connection with the proposed
1950 revenue bill.
“All officials of the Government
* • * agree that we must find new
sources of revenue,” Mr. Mason
said. “Recent trial balloons sent
up by the White House list such
unpopular proposals as the un
distrbuted profits tax, the excess
profits tax, increased estate or gift
taxes, higher corporate taxes,
higher individual rates—all of the
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batwaan 13th ant 14th
old business-destroying ways of
soaking the rich.”
He said regular business is “al
ready paying too much for its own
good” and new sources of revenue
should be found.
Catholic Schools Here Give
$3,500 for Student Relief
More than $3,500 was contrib-;
uted for relief of students in war
devastated countries by Catholic
schools in the Washington area
as part of the Nation-wide stu
dent relief drive last year, it was
announced today.
A total of $359,901 in cash, food,
clothing and books was collected
from Catholic schools around the
country. Of this amount $197,545
was in money and the remainder
in materials.
Contributions of local schools
were as follows; Catholic Univer
sity, $850 and 706 pounds of
clothing: Dunbarton College, $98
and 180 pounds of clothing and
books; Georgetown University,
$1,274 and 2,866 pounds of cloth
ing and books; junior college at
Georgetown University, $400 and
70 pounds of Clothing and books;
Immaculata Junior College, $208
and 214 pounds of clothing, and
Trinity College, $660 and 345
pounds of clothing.
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If you’re not comfortable, you’re not
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All Silk Neckwear . . , from $2.50
'*Stylists to Washington Men for Over 60 Years”
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